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Exhibit 10.2

SECOND AMENDMENT TO STANDARD OFFICE LEASE 

        THIS SECOND AMENDMENT TO STANDARD OFFICE LEASE (this “Second Amendment”) is made this 16th day of December, 2019 (the “Amendment Date”), by ALTURAS SIETE I, LLC, an Idaho limited liability company (“Landlord”), and Castle Biosciences, Inc., a Delaware corporation (“Tenant”), and amends that certain Standard Office Lease dated October 5, 2015 (the “Original Lease”), as previously amended by that certain First Amendment to Lease dated December 4, 2018 (the “First Amendment”, and together with the Original Lease referred to collectively as the “Lease”), between Landlord and Tenant, for the lease of those certain premises that consist of approximately 11,916 rentable square feet known as Suites 125, 130 and 160 (the “Premises”) in the building located at 3737 North 7th Street, Phoenix, Arizona 85014, as follows:
1.EXTENSION OF TERM.  The Term is extended by forty-eight (48) months, such that the Expiration Date is July 31, 2027.
2.BASIC RENTAL.  Basic Rental shall remain as set forth in Lease through July 31, 2023.  Commencing on August 1, 2023 and continuing thereafter, Basic Rental shall be as follows:
									
	Period	Annual Basic Rental Per Rentable Square Foot	Monthly Basic Rental
	8/1/23 - 2/29/24	$21.50	$21,349.50
	3/1/24 - 2/28/25	$22.00	$21,846.00
	3/1/25 - 2/28/26	$22.50	$22,342.50
	3/1/26 - 2/28/27	$23.00	$22,839.00
	3/1/27 - 7/31/27	$23.50	$23,335.50

Tenant also shall be responsible for and shall pay all applicable rental tax.  All such amounts shall be paid concurrently with Monthly Basic Rental.
3. PARKING CHARGES.  Effective as of the Amendment Date, all of Tenant’s parking at the Project, as allocated under the Lease, shall be at no additional charge (other than applicable taxes) for the entire Term.
4. OPERATING COSTS.  The definition of “Operating Costs” under Section 3(d)(ii) of the Original Lease is hereby deleted in its entirety and replaced with the following: 

        “Operating Costs”, which shall mean all costs and expenses paid or incurred by Landlord in connection with the maintenance, operation, replacement, ownership and repair of the Project, the equipment, the infra-building cabling and wiring, adjacent walks, malls and landscaped and common areas and the parking structure, areas and facilities of the Project.  Operating Costs shall include but not be limited to, salaries, wages, medical, surgical and general welfare benefits and pension payments, payroll taxes, fringe benefits, employment taxes, workers' compensation, uniforms and dry cleaning thereof for all personnel who perform duties connected with the operation, maintenance and repair of the Project, its equipment, the intra-building cabling and wiring and the adjacent walks and landscaped areas, including janitorial (excluding janitorial contracted for directly by Tenant solely with respect to the Premises, if any), gardening, security, parking, operating engineer, elevator, painting, plumbing, electrical, carpentry, heating, ventilation, air conditioning and window washing; hired services, provided, however, if such personnel’s employment or duties are not exclusively limited 
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to service at the Project on a full-time basis, then the costs of such personnel included within the Operating Costs shall adjusted to reflect only the proportionate share of such costs which reflect the actual time spent on the Project; a reasonable allowance for depreciation of the cost of acquiring or the rental expense of personal property used in the maintenance, operation and repair of the Project; accountant's fees incurred in the preparation of rent adjustment statements (including, without limitation, bookkeeping and other property accounting costs); legal fees; real estate tax consulting fees; personal property taxes on property used in the maintenance and operation of the Project; fees, costs, expenses or dues payable pursuant to the terms of any covenants, conditions or restrictions or owners' association pertaining to the Project; capital expenditures incurred to effect economies of operation of, or stability of services to, the Project or otherwise incurred in order to enhance or upgrade the safety, security, fire/life/safety or other operating systems of the Project, and capital expenditures required by government regulations, laws, or ordinances including, but not limited to the Americans with Disabilities Act; provided however that any such permitted capital expenditure shall be amortized (with interest at ten percent (10%) per annum) over its useful life and only the amortized portion (together with accrued interest thereon) shall be included in Operating Costs for such year; costs incurred (capital or otherwise) on a regular recurring basis every three (3) or more years for certain maintenance projects (e.g., parking lot slurry coat or replacement of lobby and elevator cab carpeting); the cost of all charges for electricity, gas, water and other utilities furnished to the Project, including any taxes thereon; the cost of all charges for fire and extended coverage, liability and all other insurance in connection with the Project carried by Landlord; the cost of all building and cleaning supplies and materials; the cost of all charges for cleaning, maintenance and service contracts and other services with independent contractors and administration fees; a reasonable property management fee for comparable projects in the Phoenix, Arizona (which fee may be imputed if Landlord has internalized management or otherwise acts as its own property manager); and license, permit and inspection fees relating to the Project.
5. ALTERATIONS.  Section 9(c), Section 9(d) and Section 9(e) of the Original Lease are hereby deleted in their entirety and replaced with the following:
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(c)Alterations.  Tenant shall make no alterations, installations, changes or additions in or to the Premises or the Project (collectively, “Alterations”) without Landlord's prior written consent; provided that such consent may not be unreasonably withheld, conditioned or delayed if the Alterations are reasonably necessary for the Tenant’s business and are within the general scope of the Tenant Improvements; provided further, however, Tenant shall not be required to obtain Landlord’s consent for any cosmetic alterations, installations, changes or additions in or to the Premises that (a) do not impact the structural, mechanical, electrical, plumbing, fire/life safety or heating, ventilation and air conditioning systems of the Project, (b) are not visible from the outside of the interior of the Premises, (c) do not exceed Fifty Thousand and No/100 Dollars ($50,000.00) in the aggregate in any one (1) Lease Year, and (d) do not require a permit (“Minor Alterations”).  Any Alterations approved by Landlord must be performed in accordance with the terms hereof, using only contractors or mechanics approved by Landlord in writing and upon the approval by Landlord in writing of fully detailed and dimensioned plans and specifications pertaining to the Alterations in question, to be prepared and submitted by Tenant at its sole cost and expense.  Tenant shall at its sole cost and expense obtain all necessary third-party approvals and permits pertaining to any Alterations approved by Landlord or any Minor Alterations.  Tenant shall cause all Alterations and Minor Alterations to be performed in a good and workmanlike manner, in conformance with all applicable federal, state, county and municipal laws, rules and regulations, pursuant to a valid building permit, and in conformance with Landlord's construction rules and regulations.  If Landlord, in approving any Alterations, specifies a commencement date therefor, Tenant shall not commence any work with respect to such Alterations prior to such date.  Tenant hereby agrees to indemnify, defend, and hold Landlord free and harmless from all liens and claims of lien, and all other liability, claims and demands arising out of any work done or material supplied to the Premises by or at the request of Tenant in connection with any Alterations or any Minor Alterations.
(d)Insurance; Liens.  Prior to the commencement of any Alterations, Tenant shall provide Landlord with evidence that Tenant carries “Builder's All Risk” insurance in an amount approved by Landlord covering the construction of such Alterations, and such other insurance as Landlord may reasonably require, it being understood that all such Alterations shall be insured by Tenant pursuant to Article 14 of this Lease immediately upon completion thereof.  In addition, Landlord may, in its reasonable discretion, require Tenant to obtain a lien and completion bond or some alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien free completion of any such Alteration in excess of Two Hundred Thousand and No/100 Dollars ($200,000.00) (a “Substantial Alteration”) and naming Landlord as a co-obligee.
(e)Costs and Fees; Removal.  If permitted Alterations or Minor Alterations are made, they shall be made at Tenant's sole cost and expense and shall be and become the property of Landlord, except that Landlord may, by written notice to Tenant given prior to the end of the Term, require Tenant at Tenant's expense to remove all partitions, counters, railings, cabling, Improvements and other Alterations or Minor Alterations from the Premises, and to repair any damage to the Premises and the Project caused by such removal.  The preceding sentence shall not apply to Landlord’s Work.  Any and all costs attributable to or related to the applicable building codes of the city in which the Project is located (or any other authority having jurisdiction over the Project) arising from Tenant's plans, specifications, improvements, Alterations or otherwise shall be paid by Tenant at its sole cost and expense.  With regard to Alterations (other than Minor Alterations) under this Article 9, Landlord shall be entitled to receive an administrative/coordination fee (which fee shall vary depending upon whether or not Tenant orders the work directly from Landlord) sufficient to compensate Landlord for all reasonable overhead, general conditions, fees and other actual costs and expenses arising from Landlord's involvement with such work.
6. LIENS.  The first sentence of Section 10(a) of the Original Lease is hereby deleted in its entirety and replaced with the following:

        Tenant shall keep the Premises and the Project free from any mechanics' liens, vendors liens or any other liens arising out of any Alterations and Minor Alterations performed, materials furnished or obligations incurred by Tenant, and Tenant agrees to defend, indemnify and hold Landlord harmless from and against any such lien or claim or action thereon, including but not limited to the lienholder's claim for legal fees or court costs, together with costs of suit and reasonable attorneys' fees and costs incurred by Landlord in connection with any such claim or action.

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7. TENANT’S WORK.  Section 10(b) of the Original Lease is hereby deleted in its entirety and replaced with the following:
        (b) Tenant's Work.  Tenant shall take all actions reasonably necessary under Applicable Laws to ensure that no liens encumbering Landlord's interest in the Premises arise as a result of any work by or for Tenant within the Premises, including any Alterations (collectively, “Tenant's Work”). With respect to any Substantial Alteration, such actions shall include, without limitation, the recording of a notice of posted security in the Official Records of Maricopa County, Arizona, in accordance with Applicable Laws, and either (i) establish a construction disbursement account, or (ii) furnish and record, in accordance with Applicable Law, a surety bond for the prime contract for the Substantial Alteration at the Premises that meets the requirements of Applicable Law.  Tenant shall notify Landlord of the name and address of Tenant's prime contractor who will be performing the Substantial Alteration as soon as it is known.  Tenant shall notify Landlord promptly upon the signing of any contract with the prime contractor for any Substantial Alteration to the Premises.  Tenant may not enter the Premises to begin initial construction on the Substantial Alteration until Tenant has delivered evidence satisfactory to Landlord that Tenant has complied with the terms of this Section 10(b).  Failure by Tenant to comply with the terms of this Section 10(b) (subject to applicable notice and cure periods set forth in this Lease) shall permit Landlord to declare Tenant in default and to terminate this Lease.
8. BASIC SERVICES.  Section 11(a) of the Original Lease is hereby deleted in its entirety and replaced with the following:
(a) Basic Services.  Landlord agrees to furnish to the Premises, at a cost to be included in Operating Costs, from 7:00 a.m. to 7:00 p.m. Mondays through Fridays, and 8:00 a.m. to 2:00 p.m. Saturdays, excepting local and national holidays, air conditioning and heat all in such reasonable quantities as is reasonably necessary for the comfortable occupancy and use of the Premises by Tenant consistent with Tenant’s Permitted Use.  In addition, Landlord, at a cost to be included in Operating Costs, shall assure that electric current, elevator service and water are available to the Premises in such quantities as is reasonably necessary for the comfortable occupancy and use of the Premises by Tenant consistent with Tenant’s Permitted Use.  Janitorial and maintenance services shall be furnished as part of the Operating Costs, five (5) days per week, excepting local and national holidays.  Tenant shall comply with all rules and regulations which Landlord may establish for the proper functioning and protection of the common area air conditioning, heating, elevator, electrical, intra-building cabling and wiring and plumbing systems all consistent with the comfortable occupancy and use of the Premises by Tenant consistent with Tenant’s Permitted Use.  Landlord shall not be liable for, and there shall be no rent abatement as a result of, any stoppage, reduction or interruption of any such services caused by governmental rules, regulations or ordinances, riot, strike, labor disputes, breakdowns, accidents, necessary repairs or other cause, provided however that Landlord will not engage in a repair of any HVAC, plumbing or electrical system without providing Tenant with reasonable prior written notice, and will endeavor to schedule such reasonable repairs during hours that do not disrupt Tenant’s Permitted Use of the Premises.  Notwithstanding the foregoing, if there is any interruption of any such services caused by Landlord’s gross negligence or intentional misconduct, and such interruption continues for ten (10) days following Tenant’s delivery of written notice to Landlord, and Tenant ceases operating at the Premises due to such interruption, then 
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Tenant shall be entitled to a day for day abatement of Basic Rental and Additional Rent commencing on the eleventh (11th) day following the date of such notice and continuing until such services(s) have been fully restored. 

9. AFTER-HOURS USE. Section 11(f) of the Original Lease is hereby deleted in its entirety and replaced with the following:
(f) After-Hours Use.  Landlord agrees that heating, ventilation and air conditioning to the Premises shall be available outside of the times provided in Section 11(a) above, subject to the terms of this paragraph. If Tenant requires heating, ventilation and/or air conditioning during times other than the times provided in Section 11(a) above, Tenant shall give Landlord such advance notice as Landlord shall reasonably require and shall pay Landlord's standard charge for such after-hours use if such use is on a non-recurring basis. Should Tenant wish to occupy and use the Premises after the dates and times permitted in Section 11(a), then Landlord and Tenant agree to meet and discuss the use during expanded hours ("Expanded Hours"). It is understood and agreed that Tenant may elect to use the Premises on an Expanded Hours basis (e.g., providing a second shift of workers as demand from the Tenant's business increases). Landlord and Tenant agree that should the Tenant operate its business on an Expanded Hour basis then the parties will work together to provide sufficient service (i.e., utilities) to the Premises, with Tenant responsible for reimbursement of any incremental expenses incurred by Landlord for such Expanded Hours use. Notwithstanding anything to the contrary, Tenant shall not be charged after-hours HVAC charges for cooling specific to its server room.
10. TENANT INDEMNITY.  The last sentence of Section 13(a) of the Original Lease is hereby deleted in its entirety and replaced with the following:
        Tenant hereby assumes all risk of damage to property or injury to persons in or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof against Landlord and the Landlord Parties, excepting where the damage or injury is caused by the gross negligence or willful misconduct of Landlord or the Landlord Parties.
11. LANDLORD INDEMNITY.  Section 13(d) of the Original Lease is hereby deleted in its entirety and replaced with the following:

        (d) Landlord Indemnity.  Landlord shall indemnify, defend and hold Tenant, its subsidiaries, partners, parental and other affiliates and their respective members, shareholders, officers, directors, employees and contractors harmless from any and all claims, liabilities, damages, expenses and losses arising from Landlord’s gross negligence or willful misconduct in connection with the operation by Landlord of the Project.  

12. INCREASES TO TENANT INSURANCE.  The last sentence of Section 14(a) of the Original Lease is hereby deleted in its entirety and replaced with the following:

        Tenant shall carry and maintain during the entire Term (including any option periods, if applicable), at Tenant's sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 14 and such other reasonable types of insurance coverage and in such reasonable amounts covering the Premises and Tenant's operations therein, as may be reasonably required by Landlord; provided, however, in no event shall Landlord have the right to request any increased 
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insurance amounts or additional coverages more than once every three (3) years during the Term.

13. LANDLORD’S INSURANCE.  Section 14(c) of the Original Lease is hereby deleted in its entirety and replaced with the following:
        (c) Landlord's Insurance.  Landlord shall, as a cost to be included in Operating Costs, procure and maintain at all times during the Term of this Lease, a policy or policies of insurance covering loss or damage to the Project in the amount of the full replacement costs without deduction for depreciation thereof, providing protection against all perils included within the classification of fire and extended coverage, vandalism coverage and malicious mischief, sprinkler leakage, water damage, and special extended coverage on the building.  Additionally, Landlord shall carry, in commercially reasonable amounts,:  (i) Bodily Injury and Property Damage Liability Insurance and/or Excess Liability Coverage Insurance; and (ii) Earthquake and/or Flood Damage Insurance; and (iii) Rental Income Insurance; and (iv) any other forms of insurance Landlord may deem appropriate or any lender may require.  The costs of all insurance carried by Landlord shall be included in Operating Costs.
14. ASSIGNMENT AND SUBLETTING.  The first sentence of Section 15 of the Original Lease is hereby deleted in its entirety and replaced with the following:
        Tenant shall have no power to, either voluntarily, involuntarily, by operation of law or otherwise, sell, assign, transfer or hypothecate this Lease, or sublet the Premises or any part thereof, or permit the Premises or any part thereof to be used or occupied by anyone other than Tenant or Tenant's employees agents, visitors, guests, invitees or licensees without the prior written consent of Landlord, which such consent shall not be unreasonably withheld, conditioned or delayed.
15. LANDLORD RECAPTURE.  Section 15(e) of the Original Lease is hereby deleted in its entirety and replaced with the following:

Notwithstanding anything to the contrary contained in this Article 15, Landlord shall have the option, by giving written notice to Tenant (“Landlord's Recapture Notice”) within thirty (30) days after Landlord's receipt of a request for consent to a proposed Transfer, to terminate this Lease as to the portion of the Premises that is the subject of the proposed Transfer (hereinafter, the “Recapture Space”), unless Tenant agrees to revoke its request for Landlord’s Consent to a proposed Transfer within five (5) days following Tenant’s receipt of such written notice from Landlord, in which event this Lease shall continue in full force and effect notwithstanding the prior request from Tenant.  If this Lease is so terminated with respect to less than the entire Premises, (i) the Basic Rental and Tenant's Proportionate Share shall be prorated based on the number of rentable square feet retained by Tenant as compared to the total number of rentable square feet previously contained in the Premises, and this Lease as so amended shall continue thereafter in full force and effect, and upon the request of either party, the parties shall execute written confirmation of the same, and (ii) Tenant shall be responsible for all costs incurred by Landlord in connection with separately demising the Recapture Space separate and apart from the balance of the Premises, including without limitation, all ductwork, systems work, demising wall installation and compliance with governmental requirements relating thereto (“Landlord's Recapture Costs”).  Tenant shall reimburse Landlord for Landlord's Recapture Costs within ten (10) business days 
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following written demand therefor from Landlord.  The effective date of any such termination shall be set forth in Landlord's Recapture Notice.
16. DAMAGE OR DESTRUCTION.  Section 16 of the Original Lease is hereby deleted in its entirety and replaced with the following:
If the Project is damaged by fire or other insured casualty, the damage shall be repaired by Landlord and provided such repairs can, in Landlord's sole opinion, be completed within two hundred seventy (270) days after commencement of the necessity for repairs, without the payment of overtime or other premiums, and until such repairs are completed, rent shall be abated in proportion to the part of the Premises which is unusable by Tenant in the conduct of its business (but there shall be no abatement of rent by reason of any portion of the Premises being unusable for a period equal to one (1) day or less). If repairs cannot, in Landlord's opinion, be completed within two hundred seventy (270) days after the necessity for repairs this Lease shall instead terminate, by notifying Tenant in writing of such termination within sixty (60) days after Landlord makes such a determination, with such notice to include a termination date giving Tenant sixty (60) days to vacate the Premises.  In addition, Landlord may elect to terminate this Lease if the Project shall be damaged by fire or other casualty or cause, whether or not the Premises are affected, if the damage is not fully covered, except for deductible amounts, by Landlord's insurance policies.  Finally, if the Premises or the Project is damaged to any substantial extent during the last twelve (12) months of the Term, then notwithstanding anything contained in this Article 16 to the contrary, Landlord and Tenant shall each have the option to terminate this Lease by giving written notice to the other party of the exercise of such option within sixty (60) days after Landlord or Tenant, as applicable, learns of the necessity for repairs as the result of such damage.  A total destruction of the Project shall automatically terminate this Lease.  Tenant understands that Landlord will not carry insurance of any kind on Tenant's furniture, furnishings, trade fixtures or equipment, and that Landlord shall not be obligated to repair any damage thereto or replace the same. Except as otherwise expressly set forth in this Lease, Tenant acknowledges that Tenant shall have no right to any proceeds of insurance carried by Landlord relating to property damage.
17. EMINENT DOMAIN.  Section 18 of the Original Lease is hereby deleted in its entirety and replaced with the following:
If the whole of the Premises or the Project or so much thereof as to render the balance unusable by Tenant shall be taken under power of eminent domain, or is sold, transferred or conveyed in lieu thereof, this Lease shall automatically terminate as of the date of such condemnation, or as of the date possession is taken by the condemning authority, at Landlord's option.  No award for any partial or entire taking shall be apportioned, and Tenant hereby assigns to Landlord any award which may be made in such taking or condemnation, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof; provided, however, that nothing contained herein shall be deemed to give Landlord any interest in or to require Tenant to assign to Landlord any award made to Tenant for the taking of personal property and trade fixtures belonging to Tenant and removable by Tenant at the expiration of the Term hereof as provided hereunder or for the loss of Tenant’s leasehold interest or the interruption of, or damage to, Tenant's business.  In the event of a partial taking described in this Article 18, or a sale, transfer or conveyance in lieu thereof, which does not result in a termination of this Lease, the rent shall be apportioned according to the ratio that the part of the 
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Premises remaining useable by Tenant bears to the total area of the Premises.  Tenant hereby waives any and all rights it might otherwise have pursuant to Applicable Law, to terminate the Lease in the event of a partial taking.

18. DEFAULT.  Section 19(c) and Section 19(g) of the Original Lease are hereby deleted in their entirety and replaced with the following:
        (c) Abandonment or vacating or failure to accept tender of possession of the Premises or any significant portion thereof for more than sixty (60) continuous days;
        (g) Tenant's failure to observe or perform according to the provisions of Article 7, Article 14, Article 17, Article 25 or Article 28 within ten (10) business days after notice from Landlord; or
        Additionally, Section 19(i) of the Original Lease is hereby deleted in its entirety.

19. ESTOPPEL CERTIFICATE.  Article 25 of the Original Lease is hereby deleted in its entirety and replaced with the following:
Landlord and Tenant, as applicable, shall, at any time and from time to time, upon not less than ten (10) days’ prior written notice from the other party, execute, acknowledge and deliver to the other party a statement in writing (the “Estoppel Certificate”) certifying the following information, (but not limited to the following information if further information is requested):  (i) that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as modified, is in full force and effect); (ii) the dates to which the rental and other charges are paid in advance, if any; (iii) the amount of Tenant's security deposit, if any; and (iv) acknowledging that there are not, to Landlord or Tenant's knowledge, as applicable, any uncured defaults on the part of the other party hereunder, and no events or conditions then in existence which, with the passage of time or notice or both, would constitute a default on the part of such party hereunder, or specifying such defaults, events or conditions, if any are claimed.  It is expressly understood and agreed that any such statement contained in the Estoppel Certificate delivered by Landlord or Tenant as provided herein may be relied upon by any prospective purchaser, assignee, transferee or encumbrancer of all or any portion of the Real Property.  A party’s failure to deliver such statement within such time shall constitute an admission by such party that all statements contained therein are true and correct
        
20. LIABILITY OF LANDLORD.  Article 26 of the Original Lease is hereby deleted in its entirety and replaced with the following:

Notwithstanding anything in this Lease to the contrary, any remedy of Tenant for the collection of a judgment (or other judicial process) requiring the payment of money by Landlord in the event of any default by Landlord hereunder or any claim, cause of action or obligation, contractual, statutory or otherwise by Tenant against Landlord or the Landlord Parties concerning, arising out of or relating to any matter relating to this Lease and all of the covenants and conditions or any obligations, contractual, statutory, or otherwise set forth herein, shall be limited solely and exclusively to an amount which is equal to the interest of Landlord in the Project.  No other property or assets of Landlord or any Landlord Party shall be subject to levy, execution or other enforcement procedure 
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for the satisfaction of Tenant's remedies under or with respect to this Lease, Landlord's obligations to Tenant, whether contractual, statutory or otherwise, the relationship of Landlord and Tenant hereunder, or Tenant's use or occupancy of the Premises.  
21. HAZARDOUS WASTE.  
(a) Notwithstanding anything in the Original Lease to the contrary, (i) Tenant shall be allowed to store and use reasonable amounts of commercially available cleaning products, printing inks and other products for normal office operations, in compliance with all Laws, without the consent of Landlord, (ii) with the prior written consent of Landlord, and subject to additional reasonable requirements imposed by Landlord, Tenant shall be allowed to generate, produce, bring upon, use, store, treat or dispose of any Hazardous Materials to the extent such Hazardous Materials are consistent with Tenant’s business and so long as such generation, production, usage, storage and disposal are in compliance with all Laws, and (iii) Landlord hereby consents to and approves of, and Tenant shall be permitted to generate, produce, bring upon, use, store, treat or dispose of, in compliance with all Laws, those certain Hazardous Materials described on Exhibit “A” attached hereto (the “Pre-Approved Hazardous Materials”).
(b) Landlord and Tenant hereby further agree that (i) the indemnification from Tenant to Landlord under Section 28(a) of the Original Lease shall not apply to the extent caused by the gross negligence or willful misconduct of Landlord or Landlord’s employees or agents or to the extent any of the foregoing was caused or necessitated by the presence or existence of any Hazardous Materials on the Project prior to the Effective Date of this Lease, and (ii) the cost of complying with Laws relating to Hazardous Material on the Project for which Landlord is legally liable and which are paid or incurred by Landlord shall be an Operating Cost (and Tenant shall pay Tenant's Proportionate Share thereof in accordance with and subject to the limitations set forth in the Lease, as modified by this Second Amendment) unless the cost of such compliance as between Landlord and Tenant, is made the responsibility of Tenant pursuant to Section 28(a) of the Lease, as modified by this Second Amendment, or is made the responsibility of Landlord as a result of the gross negligence or willful misconduct of Landlord and/or the Landlord Parties.
22. CONFIDENTIALITY.  Landlord and Tenant agree that the Parties’ obligations under Section 30(s) of the Original Lease are subject to disclosures otherwise required by law or securities regulations. 
23.  RIGHT TO EXTEND TERM.  Landlord and Tenant hereby agree as follows:
(a) If there is no continuing Event of Default by Tenant and the Tenant is occupying the Premises and has not otherwise assigned or sublet all or any portion of the Leased Premises, then Tenant shall have the right to extend the Term for up to two (2) terms of five (5) years each (the “First Extended Term” and “Second Extended Term” respectively and each an “Extended Term” and together “Extended Terms”), by giving Landlord written notice of its intention to do so (an “Extension Notice”) not sooner than three hundred sixty-five (365) days and not later than two hundred seventy (270) days prior to the expiration of the original Lease Term or the First Extended Term, as applicable.  The Extended Terms shall be upon all of the terms and conditions of this Lease, except that Landlord and Tenant hereby acknowledge and agree that Basic Rental payable during the first twelve (12) months of each of the Extended Terms shall be shall be the greater of Fair Market Rental Value (as defined below) or the then-current Basic Rental, and that Basic Rental for each subsequent twelve (12) month period during the applicable portion of each Extended Term shall be equal to the Basic Rental in effect immediately prior to the commencement of such succeeding twelve (12) month period of the applicable Extended Term multiplied by one hundred three percent (103%).

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(b) For the purposes of this Lease, the “Fair Market Rental Value” shall mean the then-prevailing annual market rental value, for office space of comparable size, quality and location to the Premises in comparable buildings in the Phoenix, Arizona market.  Promptly after receiving the Extension Notice, Landlord shall provide Tenant with Landlord’s good faith determination of the Fair Market Rental Value for the first twelve (12) months of the applicable Extended Term.  Within fifteen (15) days after Tenant’s receipt of Landlord’s determination, Tenant shall notify Landlord whether Tenant accepts or rejects such determination.  If Tenant fails to notify Landlord within such fifteen (15) day period, Tenant shall be deemed to have accepted such determination. If Tenant delivers to Landlord timely notice of its objection to such determination, Landlord and Tenant shall use good faith efforts to agree upon the Fair Market Rental Value within thirty (30) business days following Landlord’s receipt of Tenant’s notice of objection (the “Outside Agreement Date”).  If Landlord and Tenant are unable to so agree by the Outside Agreement Date, then Landlord and Tenant shall have the Fair Market Rental Value determined in accordance with the so-called “baseball” method of determination, as summarized below.
(c) Within thirty (30) days after the Outside Agreement Date, Landlord and Tenant shall, at each of their own cost and expense, each determine and report to the other in writing their final determination of the Fair Market Rental Value.  If such respective determinations are within five percent (5%) of each other, the Fair Market Rental Value shall be the average of such amounts.  However, if after receiving such determinations, Landlord and Tenant are unable to agree on the Fair Market Rental Value (and the respective amounts are not within five percent (5%) of each other), then, within fifteen (15) days after receipt of such determinations, Landlord and Tenant shall jointly appoint an independent arbitrator (the “Arbitrator”) with experience in real estate activities, including at least ten (10) years’ experience serving as a broker in transactions involving commercial office space of comparable size and quality to the Premises in the Phoenix, Arizona market, which Arbitrator shall, within twenty (20) days following the Arbitrator’s appointment, determine and report in writing to Landlord and Tenant the Fair Market Rental Value by selecting either Landlord’s or Tenant’s determination of the Fair Market Rental Value, according to whichever of the applicable determinations is closer to the Fair Market Rental Value, as determined by the Arbitrator.  If Landlord and Tenant cannot agree on the Arbitrator in accordance with the foregoing, Landlord and Tenant may appoint a mutually approved third-party such as a judge or arbitration service to appoint the Arbitrator in accordance with the criteria stated in this Section.  The appointed Arbitrator shall have no discretion other than to select Landlord’s or Tenant’s determination of the Fair Market Rental Value as aforesaid.  The cost and expense of the Arbitrator and any third-party appointed to select the Arbitrator shall be shared equally by Landlord and Tenant, and each of Landlord and Tenant shall reasonably cooperate with the Arbitrator in providing documentation and any other reasonable evidence regarding how Landlord or Tenant, as applicable, arrived at its determination of the Fair Market Rental Value.  If the Extended Term commences prior to the final determination of the Fair Market Rental Value, Tenant shall pay to Landlord the Basic Rental payable during the prior twelve (12) month period pending resolution of the Fair Market Rental Value, subject to adjustment upon resolution of such Fair Market Rental Value.  Any amount owing to Landlord or Tenant based on the final resolution of the Fair Market Rental Value shall be paid by the applicable party to the other party within thirty (30) days following final determination of the Fair Market Rental Value.
24. RIGHT OF FIRST OFFER.  Article 32 of the Original Lease is hereby deleted in its entirety and replaced with the following:
If there is no continuing Event of Default by Tenant and the Tenant is occupying the Premises and has not otherwise assigned or sublet all or any portion of the Leased Premises, then during the period commencing upon execution of this Second Amendment and expiring on the last day of the twenty-fourth (24th) month thereafter (the "ROFO Period"), Tenant shall have a Right of First Offer ("ROFO") to lease any space 
10

contiguous to the Premises that is leased as of the date of this Lease and subsequently becomes available, pursuant to the terms set forth in this paragraph. Landlord shall notify Tenant of any such space becoming available during the ROFO Period and Tenant shall have three (3) days after such notification to notify Landlord that Tenant elects to lease such space. If Tenant fails to deliver notice to Landlord of its election to exercise the ROFO, Tenant shall be deemed to have elected not to exercise the ROFO. The base rent, terms and conditions for the ROFO space shall be those set forth in Landlord's ROFO notice, provided, however, the terms set forth in Landlord's ROFO notice must provide that (a) the Work Allowance shall be proportionately adjusted for the portion of the Term remaining under the Lease, and (b) the lease term shall be coterminous with the Term. This ROFO shall be personal to Tenant, and is not transferable. Any attempted assignment or transfer by Tenant of the ROFO shall be null and void.
25. RULES AND REGULATIONS.  Landlord and Tenant hereby agree as follows:
(a) Item 31 of the Rules and Regulations set forth in Exhibit “B” of the Original Lease is hereby amended to define “Normal Business Hours” as between the hours of 7:00 A.M. and 7:00 P.M. Monday through Friday, 8:00 A.M. and 2:00 P.M. Saturday, but excluding legal holidays.
(b) Item 37 of the Rules and Regulations set forth in Exhibit “B” of the Original Lease is hereby deleted in its entirety.  
26. REAL ESTATE BROKERAGE.  Tenant represents that it has not had dealings with any real estate broker, finder or other person with respect to this Second Amendment, other than Cushman & Wakefield, who represents Landlord (the “Broker”), and that Tenant is not represented by a real estate broker, finder or other person with respect to this Second Amendment.  Landlord shall pay the Broker a commission with respect to this Second Amendment pursuant to a separate agreement.  If any other person shall assert a claim to a finder’s fee, brokerage commission or other compensation on account of alleged employment as a finder or broker or for performance of services as a finder or broker in connection with this transaction, the party under whom the finder or broker is claiming shall indemnify, defend, and hold harmless the other party for, from and against any and all obligations, debts, covenants, conditions, representations, costs, and liabilities and any and all demands, causes of action, and claims, of every type, kind, nature or character, direct or indirect, known or unknown, absolute or contingent, determined or speculative, at law, in equity or otherwise, including attorneys’ fees and litigation and court costs, in connection with such claim or any action or proceeding brought on such claim.
27. CONDITION OF PREMISES.  Tenant is in possession of and has accepted the Premises.  Tenant acknowledges that all work to be performed by Landlord in the Premises as required by the terms of the Lease has been satisfactorily completed and all allowances to be paid by Landlord as required by the terms of the Lease have been paid in full.
28. EXISTING CLAIMS.  Tenant represents and warrants that there are no existing claims or causes of action against Landlord arising out of the Lease, either currently or that would exist with the giving of notice or with the passage of time, nor are there any existing defenses that Tenant has against the enforcement of the Lease by Landlord. Similarly, Landlord represents and warrants that there are no existing claims or causes of action against Tenant arising out of the Lease, either currently or that would exist with the giving of notice or with the passage of time, nor are there any existing defenses that Landlord has against the enforcement of the Lease by Tenant. 
29. MISCELLANEOUS.  Except as set forth in this Second Amendment, the Lease shall continue in full force and effect.  This Second Amendment supersedes and replaces all previous terms in the Lease 
11

that may conflict with the terms in this Second Amendment.  Capitalized terms used in this Second Amendment without definition will have the meaning stated in the Lease.  This Second Amendment may be executed in counterparts and/or with scanned and emailed .pdf signatures and/or facsimile signatures.  The warranties contained in this Second Amendment are made and given in addition to, and not in lieu of, any other warranties made in the Lease.

[signature pages follow]

12

IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment on the Amendment Date.

LANDLORD:

ALTURAS SIETE I, LLC, 
an Idaho limited liability company 

        By:  Alturas Capital Partners, LLC,
         a Delaware limited liability company
        Its: Manager

						
	By:	/s/ Travis Barney
	Print Name:	Travis Barney
	Title:	Chief Credit Officer

TENANT:

Castle Biosciences, Inc.,
a Delaware corporation

						
	By:	/s/ Derek Maetzold
	Print Name:	Derek Maetzold
	Title:	President and CEO

13

EXHIBIT “A”
PRE-APPROVED HAZARDOUS MATERIALS
In the normal course of operation, the Castle laboratory uses and generates small quantities of chemicals and chemical waste (inventory list attached).  All such chemicals are handled and processed according to standard Hazardous Materials protocols (Title 49 CFR).  Castle maintains and will continue to maintain contracts with third party specialty vendors for both removal of chemical by-product as well as any/all material designated as medical waste.
14Document

Exhibit 10.3

COMMERCIAL LEASE
USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS®, INC. IS NOT AUTHORIZED.
©Texas Association of REALTORS®, Inc. 2014									
			

Table of Contents
																																				
	No. 		Paragraph Description			Pg.		No.		Paragraph Description		Pg.
	1.		Parties			2		24.		Assignment and Subletting		11
	2.		Leased Premises			2		25.		Relocation		11
	3.		Term					26.		Subordination		11
			A.	Term		2		27.		Estoppel Certification & Financial Info		11
			B. 	Delay of Occupancy		2		28.		Casualty Loss		12
			C. 	Certificate of Occupancy		3		29.		Condemnation		12
	4.		Rent and Expenses					30.		Attorney's Fees		12
			A.	Base Monthly Rent		3		31.		Representation		12
			B.	Additional Rent		3		32.		Brokers		13
			C.	First Full Month's Rent		3		33.		Addenda		13
			D.	Prorated Rent		3		34.		Notices		13
			E.	Place of Payment		3		35.		Special Provisions		14
			F.	Method of Payment		3		36.		Agreement of the Parties		14
			G.	Late Charges		4						
			H.	Returned Checks		4				ADDENDA & EXHIBITS (check all that apply)
		
	5.		Security Deposit			4		☒		Exhibit A - Drawing layout of Premises
		
	6.		Taxes			4		☐		Exhibit ___________________________		
	7.		Utilities			4		☒		Commercial Lease Addendum for Broker's Fee (TXR-2102)		
	8.		Insurance			5						
	9.		Use and Hours			6		☒		Commercial Lease Addendum for Expense Reimbursement (TXR-2103)		
	10.		Legal Compliance			6						
	11.		Signs			6		☐		Commercial Lease Addendum for Extension Option (TXR-2104)		
	12.		Access By Landlord			7						
	13.		Move-In Condition			7		☐		Commercial Lease Addendum for Percentage Rent (TXR-2106)		
	14.		Move-Out Condition			7						
	15.		Maintenance and Repair					☐		Commercial Lease Addendum for Parking (TXR-2107)		
			A.	Cleaning		7						
			B.	Conditions Caused by a Party		8		☐		Commercial Landlord's Rules and Regulations (TXR-2108)		
			C.	Repair & Maintenance Responsibility		8						
			D.	Repair Persons		8		☐		Commercial Lease Guaranty (TXR-2109) 		
			E.	HVAC Service Contract		9		☐		Commercial Lease Addendum for Right of First Refusal (TXR-2105)		
			F.	Common Areas		9						
			G.	Notice of Repairs		9		☐		Commercial Lease Addendum for Optional Space (TXR-2110)		
			H.	Failure to Repair		9						
	16.		Alterations			9		☐		Commercial Lease Addendum for Construction (TXR-2111) or (TXR-2112)		
	17.		Liens			9						
	18.		Liability			9		☐		Commercial Lease Addendum for Contingencies (TXR-2119)		
	19.		Indemnity			10						
	20.		Default			10		☒		Addendum to Commercial Lease		
	21.		Abandonment, Interruption of Utilities,
Removal of Property & Lockout			10		☒		Construction Agreement_______		
								☐		_______________________________________		
	22.		Holdover			10		☐		Information About Brokerage Services (TXR-2501)		
	23.		Landlord's Lien & Security Interest			11						

									
	(TXR-2101) 4-1-14
	Initialed for Identification by Landlord: LT, ____, and Tenant: DJM, ____
	Page 1 of 15

COMMERCIAL LEASE
USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS®, INC. IS NOT AUTHORIZED.
©Texas Association of REALTORS®, Inc. 2014
									
			

1.PARTIES: The parties to this lease are:
												
		Landlord:	Tannos Land Holding III, LLC	
				; and
		Tenant:	Castle Biosciences, Inc.	
				.

2.LEASED PREMISES:
A.Landlord leases to Tenant the following described real property, known as the "leased premises," along with all its improvements (Check only one box):

☒(1)  Multiple-Tenant Property: Suite or Unit Number  TBD containing approximately  21,760 
square feet of rentable  area in  Tannos Land Holding III     (project name)
at  505 S Friendswood Dr                 
(address) in  Friendswood, TX 77546 (city),               
(county), Texas, which is legally described on attached Exhibit      or as follows:
                          
                          
                          

☐(2) Single-Tenant Property: The real property containing approximately  square feet of rentable
area at:                     (address) in
      (city),                (county), Texas, 
which is legally described on attached Exhibit         or as follows:
                          
                          
                          
B.If Paragraph 2A(1) applies:
1."Property" means the building or complex in which the leased premises are located, inclusive of any common areas, drives, parking areas, and walks; and
2.the parties agree that the rentable area of the leased premises may not equal the actual or useable area within the leased premises and may include an allocation of common areas in the Property. The rentable area ☐ will ☐ will not be adjusted if re-measured.
3.TERM:
A.Term: The term of this lease is   months and    days, commencing on:
  See the attached Addendum to Commercial Lease (Commencement Date) and ending on            (Expiration Date).
B.Delay of Occupancy: If Tenant is unable to occupy the leased premises on the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially

									
	(TXR-2101) 4-1-14
	Initialed for Identification by Landlord: LT, ____, and Tenant: DJM, ____
	Page 2 of 15

									
	Commercial Lease concerning:	505 S Friendswood Dr
Friendswood, TX 77546,	

complete or a prior tenant's holding over of the leased premises, Landlord will not be liable to Tenant for such delay and this lease will remain enforceable. In the event of such a delay, the Commencement Date will automatically be extended to the date Tenant is able to occupy the Property and the Expiration Date will also be extended by a like number of days, so that the length of this lease remains unchanged. If Tenant is unable to occupy the leased premises after the 90th day after the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant's holding over of the leased premises, Tenant may terminate this lease by giving written notice to Landlord before the leased premises become available to be occupied by Tenant and Landlord will refund to Tenant any amounts paid to Landlord by Tenant. This Paragraph 3B does not apply to any delay in occupancy caused by cleaning or repairs.
C.Certificate of Occupancy: Unless the parties agree otherwise, Tenant is responsible for obtaining a certificate of occupancy for the leased premises if required by a governmental body.
4.RENT AND EXPENSES:
A.Base Monthly Rent: On or before the first day of each month during this lease, Tenant will pay  Landlord base monthly rent as described on attached Exhibit  or as follows:
															
	Dates
		Rate per rentable square foot (optional)
		Base Monthly Rent $

	From	To	$ Monthly Rate	$ Annual Rate	
	CD	Month 60	$1.85 / rsf / month
	$22.20 / rsf / year
	$40,256.00
	

	

	/ rsf / month	/ rsf / year	

	

	

	/ rsf / month	/ rsf / year	

	

	

	/ rsf / month	/ rsf / year	

	

	

	/ rsf / month	/ rsf / year	

B.Additional Rent: In addition to the base monthly rent, Tenant will pay Landlord all other amounts, as provided by the attached (Check all that apply.):
									
	☒	(1)	Commercial Lease Addendum for Expense Reimbursement (TXR-2103)
	☐	(2)	Commercial Lease Addendum for Percentage Rent (TXR-2106)
	☐	(3)	Commercial Lease Addendum for Parking (TXR-2107)
	☐	(4)	
	All amounts payable under the applicable addenda are deemed to be "rent" for the purposes of this lease.		

C.First Full Month's Rent: The first full monthly rent is due on or before  @ Execution of lease                   .
D.Prorated Rent: If the Commencement Date is on a day other than the first day of a month, Tenant will pay Landlord as prorated rent, an amount equal to the base monthly rent multiplied by the following fraction: the number of days from the Commencement Date to the first day of the following month divided by the number of days in the month in which this lease commences. The prorated rent is due  on or before the Commencement Date.
E.Place of Payment: Tenant will remit all amounts due to Landlord under this lease to the following person at the place stated or to such other person or place as Landlord may later designate in writing:
Name: Tannos Land Holding III, LLC               Address:810 S Friendswood Dr, Friendswood, Texas 77546            
F.Method of Payment: Tenant must pay all rent timely without demand, deduction, or offset, except as permitted by law or this lease. If Tenant fails to timely pay any amounts due under this lease or if any

									
	(TXR-2101) 4-1-14
	Initialed for Identification by Landlord: LT, ____, and Tenant: DJM, ____
	Page 3 of 15

									
	Commercial Lease concerning:	505 S Friendswood Dr
Friendswood, TX 77546,	

check of Tenant is returned to Landlord by the institution on which it was drawn, Landlord after
providing written notice to Tenant may require Tenant to pay subsequent amounts that become due
under this lease in certified funds. This paragraph does not limit Landlord from seeking other
remedies under this lease for Tenant's failure to make timely payments with good funds.
G.Late Charges: If Landlord does not actually receive a rent payment at the designated place of payment within 5 days after the date it is due, Tenant will pay Landlord a late charge equal to 10% of the  amount due. In this paragraph, the mailbox is not the agent for receipt for Landlord. The late charge is  a cost associated with the collection of rent and Landlord's acceptance of a late charge does not waive Landlord's right to exercise remedies under Paragraph 20.
H.Returned Checks: Tenant will pay  $ 40.00 for each check Tenant tenders to Landlord which is returned by the institution on which it is drawn for any reason, plus any late charges until Landlord receives payment.
5.SECURITY DEPOSIT:
A.Upon execution of this lease, Tenant will pay $ 50,000.00 to Landlord as a security deposit.
B.Landlord may apply the security deposit to any amounts owed by Tenant under this lease. If Landlord applies any part of the security deposit during any time this lease is in effect to amounts owed by Tenant, Tenant must, within 10 days after receipt of notice from Landlord, restore the security deposit to the amount stated.
C.Within 60 days after Tenant surrenders the leased premises and provides Landlord written notice of Tenant's forwarding address, Landlord will refund the security deposit less any amounts applied toward amounts owed by Tenant or other charges authorized by this lease.
6.TAXES: Unless otherwise agreed by the parties, Landlord will pay all real property ad valorem taxes assessed against the leased premises.
7.UTILITIES:
A.The party designated below will pay for the following utility charges to the leased premises and any connection charges for the utilities. (Check all that apply.)
																								
						N/A	Landlord	Tenant
		(1)		Water		☐	☒	☐
		(2)		Sewer		☐	☒	☐
		(3)		Electric		☐	☐	☒
		(4)		Gas		☒	☐	☐
		(5)		Telephone		☐	☐	☒
		(6)		Internet		☐	☐	☒
		(7)		Cable		☐	☐	☒
		(8)		Trash		☐	☒	☐
		(9)		AC, Heat, Water and Sewer is part of NNN		☐	☒	☐
		(10)		All other utilities		☒	☐	☐

B.The party responsible for the charges under Paragraph 7A will pay the charges directly to the utility
service provider. The responsible party may select the utility service provider except that if Tenant selects the provider, any access or alterations to the Property or leased premises necessary for the utilities may be made only with Landlord's prior consent, which Landlord will not unreasonably withhold. If Landlord incurs any liability for utility or connection charges for which Tenant is responsible to pay

									
	(TXR-2101) 4-1-14
	Initialed for Identification by Landlord: LT, ____, and Tenant: DJM, ____
	Page 4 of 15

									
	Commercial Lease concerning:	505 S Friendswood Dr
Friendswood, TX 77546,	

and Landlord pays such amount, Tenant will immediately upon written notice from Landlord reimburse Landlord such amount.
C.Notice: Tenant should determine if all necessary utilities are available to the leased premises and are adequate for Tenant's intended use.
D.After-Hours HVAC Charges: "HVAC services" means heating, ventilating, and air conditioning of the leased premises. (Check one box only.)
☐ (1) Landlord is obligated to provide the HVAC services to the leased premises only during the   Property's operating hours specified under Paragraph 9C.
☒(2) Landlord will provide the HVAC services to the leased premises during the  operating  hours  specified under Paragraph 9C for no additional charge and will, at Tenant's request, provide HVAC services to the leased premises during other hours for an additional charge of $ Landlord's cost per hour. Tenant will pay Landlord the charges under this paragraph immediately upon receipt of Landlord's invoice. Hourly charges are charged on a half-hour basis. Any partial hour will be rounded up to the next half hour. Tenant will comply with Landlord's procedures to make a request to provide the additional HVAC services under this paragraph.
☐(3)  Tenant will pay for the HVAC services under this lease.
8.INSURANCE:
A.During all times this lease is in effect, Tenant must, at Tenant's expense, maintain in full force and effect from an insurer authorized to operate in Texas:
(1)public liability insurance naming Landlord as an additional insured with policy limits on an occurrence basis in a minimum amount of: (check only (a) or (b) below)
☒(a) $1,000,000; or 
☐(b) $2,000,000.
If neither box is checked the minimum amount will be $1,000,000.
(2)personal property damage insurance for the business operations being conducted in the leased premises and contents in the leased premises in an amount sufficient to replace such contents  after a casualty loss; and
  ☐(3) business interruption insurance sufficient to pay 12 months of rent payments;
B.Before the Commencement Date, Tenant must provide Landlord with a copy of insurance certificates evidencing the required coverage. If the insurance coverage is renewed or changes in any manner or degree at any time this lease is in effect, Tenant must, not later than 10 days after the renewal or change, provide Landlord a copy of an insurance certificate evidencing the renewal or change.
C.If Tenant fails to maintain the required insurance in full force and effect at all times this lease is in  effect, Landlord may:
(1)purchase insurance that will provide Landlord the same coverage as the required insurance and Tenant must immediately reimburse Landlord for such expense; or
(2)exercise Landlord's remedies under Paragraph 20.
D.Unless the parties agree otherwise, Landlord will maintain in full force and effect insurance for: (1) fire and extended coverage in an amount to cover the reasonable replacement cost of the improvements of the Property; and (2) any public liability insurance in an amount that Landlord determines reasonable and appropriate.
E.If there is an increase in Landlord's insurance premiums for the leased premises or Property or its contents that is caused by Tenant, Tenant's use of the leased premises, or any improvements made by or for Tenant, Tenant will, for each year this lease is in effect, pay Landlord the increase immediately

									
	(TXR-2101) 4-1-14
	Initialed for Identification by Landlord: LT, ____, and Tenant: DJM, ____
	Page 5 of 15

									
	Commercial Lease concerning:	505 S Friendswood Dr
Friendswood, TX 77546,	

after Landlord notifies Tenant of the increase. Any charge to Tenant under this Paragraph 8E will be equal to the actual amount of the increase in Landlord's insurance premium.
9.USE AND HOURS:
A.Tenant may use the leased premises for the following purpose and no other: general office use and uses incidental thereto Monday through Sunday as needed.           
                          
                          
B.Unless otherwise specified in this lease, Tenant will operate and conduct its business in the leased premises during business hours that are typical of the industry in which Tenant represents it operates.
C.The Property maintains operating hours of (specify hours, days of week, and if inclusive or exclusive of weekends and holidays): 24/7 as needed by tenants            
                          
                    
10.LEGAL COMPLIANCE:
A.Tenant may not use or permit any part of the leased premises or the Property to be used for:
(1)any activity which is a nuisance or is offensive, noisy, or dangerous;
(2)any activity that interferes with any other tenant's normal business operations or Landlord's management of the Property;
(3)any activity that violates any applicable law, regulation, zoning ordinance, restrictive covenant, governmental order, owners' association rules, tenants' association rules, Landlord's rules or regulations, or this lease;
(4)any hazardous activity that would require any insurance premium on the Property or leased premises to increase or that would void any such insurance;
(5)any activity that violates any applicable federal, state, or local law, including but not limited to those laws related to air quality, water quality, hazardous materials, wastewater, waste disposal, air emissions, or other environmental matters;
(6)the permanent or temporary storage of any hazardous material; or
(7)____________________________________________________________________________________________________________________________________________________________________.
B."Hazardous material" means any pollutant, toxic substance, hazardous waste, hazardous material, hazardous substance, solvent, or oil as defined by any federal, state, or local environmental law, regulation, ordinance, or rule existing as of the date of this lease or later enacted.
C.Landlord does not represent or warrant that the leased premises or Property conform to applicable restrictions, zoning ordinances, setback lines, parking requirements, impervious ground cover ratio requirements, and other matters that may relate to Tenant's intended use. Tenant must satisfy itself that the leased premises may be used as Tenant intends by independently investigating all matters related to the use of the leased premises or Property. Tenant agrees that it is not relying on any warranty or representation made by Landlord, Landlord's agent, or any broker concerning the use of the leased premises or Property.
11.SIGNS:
A.Tenant may not post or paint any signs or place any decoration outside the leased premises or on the Property without Landlord's written consent. Landlord may remove any unauthorized sign or decorations, and Tenant will promptly reimburse Landlord for its cost to remove any unauthorized sign or decorations.

									
	(TXR-2101) 4-1-14
	Initialed for Identification by Landlord: LT, ____, and Tenant: DJM, ____
	Page 6 of 15

									
	Commercial Lease concerning:	505 S Friendswood Dr
Friendswood, TX 77546,	

B.Any authorized sign must comply with all laws, restrictions, zoning ordinances, and any governmental order relating to signs on the leased premises or Property. Landlord may temporarily remove any authorized sign to complete repairs or alterations to the leased premises or the Property.
C.By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move- out and at Tenant's expense, to remove, without damage to the Property or leased premises, any or all signs or decorations that were placed on the Property or leased premises by or at the request of Tenant. Any signs or decorations that Landlord does not require Tenant to remove and that are  fixtures, become the property of the Landlord and must be surrendered to Landlord at the time this lease ends.
12.ACCESS BY LANDLORD:
A.During Tenant's normal business hours Landlord may enter the leased premises for any reasonable purpose, including but not limited to purposes for repairs, maintenance, alterations, and showing the leased premises to prospective tenants or purchasers. Landlord may access the leased premises after Tenant's normal business hours if: (1) entry is made with Tenant's permission; or (2) entry is necessary to complete emergency repairs. Landlord will not unreasonably interfere with Tenant's business operations when accessing the leased premises.
B.During the last _____ days of this lease, Landlord may place a "For Lease" or similarly worded sign on the leased premises.
13.MOVE-IN CONDITION: Tenant has inspected the leased premises and accepts it in its present (as-is) condition unless expressly noted otherwise in this lease or in an addendum. Landlord and any agent have made no express or implied warranties as to the condition or permitted use of the leased premises or Property. 
14.MOVE-OUT CONDITION AND FORFEITURE OF TENANT'S PERSONAL PROPERTY: 
A.At the time this lease ends, Tenant will surrender the leased premises in the same condition as when received, except for normal wear and tear. Tenant will leave the leased premises in a clean condition free of all trash, debris, personal property, hazardous materials, and environmental contaminants.
B.If Tenant leaves any personal property in the leased premises after Tenant surrenders possession of the leased premises, Landlord may: (1) require Tenant, at Tenant's expense, to remove the personal property by providing written notice to Tenant; or (2) retain such personal property as forfeited property to Landlord.
C."Surrender" means vacating the leased premises and returning all keys and access devices to Landlord. "Normal wear and tear" means deterioration that occurs without negligence, carelessness, accident, or abuse.
D.By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move- out and at Tenant's expense, to remove, without damage to the Property or leased premises, any or all fixtures that were placed on the Property or leased premises by or at the request of Tenant. Any fixtures that Landlord does not require Tenant to remove become the property of the Landlord and  must be surrendered to Landlord at the time this lease ends.
15.MAINTENANCE AND REPAIRS:
A.Cleaning: Tenant must keep the leased premises clean and sanitary and promptly dispose of all garbage in appropriate receptacles. ☐ Landlord ☒ Tenant will provide, at its expense, janitorial services to the leased premises that are customary and ordinary for the property type. Tenant will maintain any grease trap on the Property which Tenant uses, including but not limited to periodic emptying and cleaning, as well as making any modification to the grease trap that may be necessary to comply with any applicable law.

									
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B.Repairs of Conditions Caused by a Party: Each party must promptly repair a condition in need of repair that is caused, either intentionally or negligently, by that party or that party's guests, patrons, invitees, contractors or permitted subtenants.
C.Repair and Maintenance Responsibility: Except as otherwise provided by this Paragraph 15, the party designated below, at its expense, is responsible to maintain and repair the following specified items in the leased premises (if any). The specified items must be maintained in clean and good operable condition. If a governmental regulation or order requires a modification to any of the specified items,  the party designated to maintain the item must complete and pay the expense of the modification. The specified items include and relate only to real property in the leased premises. Tenant is responsible  for the repair and maintenance of its personal property. (Check all that apply.)
																								
						N/A	Landlord	Tenant
	(1)		Foundation, exterior walls, roof, and other structural components			☐	☒	☐
	(2)		Glass and windows			☐	☐	☒
	(3)		Fire protection equipment			☐	☐	☒
	(4)		Fire sprinkler systems			☐	☐	☒
	(5)		Exterior & overhead doors, including closure devices, molding, locks, and hardware			☐	☒	☐
	(6)		Grounds maintenance, including landscaping and irrigation systems			☐	☒	☐
	(7)		Interior doors, including closure devices, frames, molding, locks, and hardware
			☐	☐	☒
	(8)		Parking areas and walks			☐	☒	☐
	(9)		Plumbing systems, drainage systems and sump pumps			☐	☐	☒
	(10)		Electrical systems, mechanical systems			☐	☐	☒
	(11)		Ballast and lamp replacement			☐	☐	☒
	(12)		Heating, Ventilation and Air Conditioning (HVAC) systems			☐	☐	☒
	(13)		HVAC system replacement			☐	☐	☐
	(14)		Signs and lighting:					
			(a)	Pylon		☐	☐	☒
			(b)	Facia		☐	☐	☒
			(c)	Monument		☐	☒	☐
			(d)	Door/Suite		☐	☒	☐
			(e)	Other:________________		☐	☒	☐
	(15)		Extermination and pest control, excluding wood-destroying insects.			☐	☒	☐
	(16)		Fences and Gates			☐	☒	☐
	(17)		Storage yards and storage buildings			☐	☒	☐
	(18)		Wood-destroying insect treatment and repairs			☐	☒	☐
	(19)		Cranes and related systems			☐	☒	☐
	(20)		Sprinklers systems from the point they enter the Leased Premises				☐	☒
	(21)		Each tenant will have their own electric meter				☐	☒
	(22)		All other items and systems				☐	☒

D.Repair Persons: Repairs must be completed by trained, qualified, and insured repair persons.

									
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E.HVAC Service Contract: If Tenant maintains the HVAC system under Paragraph 15C(12), Tenant ☐is
☒ is not required to maintain, at its expense, a regularly scheduled maintenance and service contract for the HVAC system. The maintenance and service contract must be purchased from a HVAC maintenance company that regularly provides such contracts to similar properties. If Tenant fails to maintain a required HVAC maintenance and service contract in effect at all times during this lease, Landlord may do so and Tenant will reimburse Landlord for the expense of such maintenance and service contract or Landlord may exercise Landlord's remedies under Paragraph 20.
F.Common Areas: Landlord will maintain any common areas in the Property in a manner as Landlord determines to be in the best interest of the Property. Landlord will maintain any elevator and signs in the common area. Landlord may change the size, dimension, and location of any common areas, provided that such change does not materially impair Tenant's use and access to the leased premises. Tenant has the non-exclusive license to use the common areas  in compliance with Landlord's rules and regulations. Tenant may not solicit any business in the common areas or interfere with any other person's right to use the common areas. This paragraph does not apply if Paragraph 2A(2) applies.
G.Notice of Repairs: Tenant must promptly notify Landlord of any item that is in need of repair and that is Landlord's responsibility to repair. All requests for repairs to Landlord must be in writing.
H.Failure to Repair: Landlord must make a repair for which Landlord is responsible within a reasonable period of time after Tenant provides Landlord written notice of the needed repair. If Tenant fails to repair or maintain an item for which Tenant is responsible within 10 days after Landlord provides Tenant written notice of the needed repair or maintenance, Landlord may: (1) repair or maintain the item, without liability for any damage or loss to Tenant, and Tenant must immediately reimburse Landlord for the cost to repair or maintain; or (2) exercise Landlord's remedies under Paragraph 20.
16.ALTERATIONS:
A.Tenant may not alter (including making any penetrations to the roof, exterior walls or foundation), improve, or add to the Property or the leased premises without Landlord's written consent. Landlord will not unreasonably withhold consent for the Tenant to make reasonable non-structural alterations, modifications, or improvements to the leased premises.
B.Tenant may not alter any locks or any security devices on the Property or the leased premises without Landlord's consent. If Landlord authorizes the changing, addition, or rekeying of any locks or other security devices, Tenant must immediately deliver the new keys and access devices to Landlord.
C.If a governmental order requires alteration or modification to the leased premises, the party obligated  to maintain and repair the item to be modified or altered as designated in Paragraph 15 will, at its expense, modify or alter the item in compliance with the order and in compliance with Paragraphs 16A and 17.
D.Any alterations, improvements, fixtures or additions to the Property or leased premises installed by either party during the term of this lease will become Landlord's property and must be surrendered to Landlord at the time this lease ends, except for those fixtures Landlord requires Tenant to remove under Paragraph 11 or 14 or if the parties agree otherwise in writing.
17.LIENS: Tenant may not do anything that will cause the title of the Property or leased premises to be encumbered in any way. If Tenant causes a lien to be filed against the Property or leased premises,  Tenant will within 20 days after receipt of Landlord's demand: (1) pay the lien and have the lien released of record; or (2) take action to discharge the lien. Tenant will provide Landlord a copy of any release Tenant obtains pursuant to this paragraph.
18.LIABILITY: To the extent permitted by law, Landlord is NOT responsible to Tenant or Tenant's employees, patrons, guests, or invitees for any damages, injuries, or losses to person or property caused by:

									
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A.an act, omission, or neglect of: Tenant; Tenant's agent; Tenant's guest; Tenant's employees; Tenant's patrons; Tenant's invitees; or any other tenant on the Property;
B.fire, flood, water leaks, ice, snow, hail, winds, explosion, smoke, riot, strike, interruption of utilities,  theft, burglary, robbery, assault, vandalism, other persons, environmental contaminants, or other occurrences or casualty losses.
19.INDEMNITY: Each party will indemnify, defend, and hold the other party harmless from any property damage, personal injury, suits, actions, liabilities, damages, cost of repairs or service to the leased premises or Property, or any other loss caused, negligently or otherwise, by that party or that party's employees, patrons, guests, or invitees.
20.DEFAULT:
A.If Landlord fails to comply with this lease within 30 days after Tenant notifies Landlord of Landlord's failure to comply, Landlord will be in default and Tenant may seek any remedy provided by law. If, however, Landlord's non-compliance reasonably requires more than 30 days to cure, Landlord will not be in default if the cure is commenced within the 30-day period and is diligently pursued.
B.If Landlord does not actually receive at the place designated for payment any rent due under this lease within 5 days after it is due, Tenant will be in default. If Tenant fails to comply with this lease for any other reason within 10 days after Landlord notifies Tenant of its failure to comply, Tenant will be in default.
C.If Tenant is in default, Landlord may, with at least 3 days written notice to Tenant: (i) terminate this lease, or (ii) terminate Tenant's right to occupy the leased premises without terminating this lease and may accelerate all rents which are payable during the remainder of this lease or any renewal period. Landlord will attempt to mitigate any damage or loss caused by Tenant's breach by using commercially reasonable means. If Tenant is in default, Tenant will be liable for:
(1)any lost rent;
(2)Landlord's cost of reletting the leased premises, including brokerage fees, advertising fees, and other fees necessary to relet the leased premises;
(3)repairs to the leased premises for use beyond normal wear and tear;
(4)all Landlord's costs associated with eviction of Tenant, such as attorney's fees, court costs, and prejudgment interest;
(5)all Landlord's costs associated with collection of rent such as collection fees, late charges, and returned check charges;
(6)cost of removing any of Tenant's equipment or fixtures left on the leased premises or Property;
(7)cost to remove any trash, debris, personal property, hazardous materials, or environmental contaminants left by Tenant or Tenant's employees, patrons, guests, or invitees in the leased premises or Property;
(8)cost to replace any unreturned keys or access devices to the leased premises, parking areas, or Property; and
(9)any other recovery to which Landlord may be entitled under this lease or under law.
21.ABANDONMENT, INTERRUPTION OF UTILITIES, REMOVAL OF PROPERTY, AND LOCKOUT: Chapter 93 of the Texas Property Code governs the rights and obligations of the parties with regard to:(a) abandonment of the leased premises; (b) interruption of utilities; (c) removal of Tenant's property; and(d) ''lock-out'' of Tenant.
22.HOLDOVER: If Tenant fails to vacate the leased premises at the time this lease ends, Tenant will become a tenant-at-will and must vacate the leased premises immediately upon receipt of demand from Landlord. No holding over by Tenant, with or without the consent of Landlord, will extend this lease. Tenant will

									
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indemnify Landlord and any prospective tenants for any and all damages caused by the holdover. Rent for any holdover period will be 150% of the base monthly rent plus any additional rent calculated on a daily basis and will be immediately due and payable daily without notice or demand.
23.LANDLORD'S LIEN AND SECURITY INTEREST: To secure Tenant's performance under this lease, Tenant grants to Landlord a lien and security interest against all of Tenant's nonexempt personal property that is in the leased premises or on the Property. This lease is a security agreement for the purposes of  the Uniform Commercial Code. Landlord may file a financing statement to perfect Landlord's security interest under the Uniform Commercial Code.
24.ASSIGNMENT AND SUBLETTING: Landlord may assign this lease to any subsequent owner of the Property. Tenant may not assign this lease or sublet any part of the leased premises without Landlord's written consent. An assignment of this lease or subletting of the leased premises without Landlord's written consent is voidable by Landlord. If Tenant assigns this lease or sublets any part of the leased premises, Tenant will remain liable for all of Tenant's obligations under this lease regardless if the assignment or sublease is made with or without the consent of Landlord.
25.RELOCATION:
															
		☐	A.		By providing Tenant with not less than 90 days advanced written notice, Landlord may require Tenant to relocate to another location in the Property, provided that the other location is equal in size or larger than the leased premises then occupied by Tenant and contains similar leasehold improvements. Landlord will pay Tenant's reasonable out-of-pocket moving expenses for moving to the other location. "Moving expenses" means reasonable expenses payable to professional movers, utility companies for connection and disconnection fees, wiring companies for connecting and disconnecting Tenant's office equipment required by the relocation, and printing companies for reprinting Tenant's stationary and business cards. A relocation of Tenant will not change or affect any other provision of this lease that is then in effect, including rent and reimbursement amounts, except that the description of the suite or  unit number will automatically be amended

					
		☒	B.		Landlord may not require Tenant to relocate to another location in the Property without Tenant's prior consent.

26.SUBORDINATION:
A.This lease and Tenant's leasehold interest are and will be subject, subordinate, and inferior to:
(1)any lien, encumbrance, or ground lease now or hereafter placed on the leased premises or the Property that Landlord authorizes;
(2)all advances made under any such lien, encumbrance, or ground lease;
(3)the interest payable on any such lien or encumbrance;
(4)any and all renewals and extensions of any such lien, encumbrance, or ground lease;
(5)any restrictive covenant affecting the leased premises or the Property; and
(6)the rights of any owners' association affecting the leased premises or Property.
B.Tenant must, on demand, execute a subordination, attornment, and non-disturbance agreement that Landlord may request that Tenant execute, provided that such agreement is made on the condition  that this lease and Tenant's rights under this lease are recognized by the lien-holder.
27.ESTOPPEL CERTIFICATES & FINANCIAL INFORMATION:
A.Within 10 days after receipt of a written request from Landlord, Tenant will execute and deliver to Landlord an estoppel certificate that identifies the terms and conditions of this lease.

									
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B.Within 30 days after receipt of a written request from Landlord, Tenant will provide to  Landlord Tenant's current financial information (balance sheet and income statement). Landlord may request the financial information no more frequently than once every 12 months.
28.CASUALTY LOSS:
A.Tenant must immediately notify Landlord of any casualty loss in the leased premises. Within 20 days after receipt of Tenant's notice of a casualty loss, Landlord will notify Tenant if the leased premises are less than or more than 50% unusable, on a per square foot basis, and if Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty loss.
B.If the leased premises are less than 50% unusable and Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty, Landlord will restore the leased premises to substantially the same condition as before the casualty. If Landlord fails to substantially restore within the time required, Tenant may terminate this lease.
C.If the leased premises are more than 50% unusable and Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty, Landlord may: (1) terminate this lease; or (2) restore the leased premises to substantially the same condition as before  the casualty. If Landlord chooses to restore and does not substantially restore the leased premises within the time required, Tenant may terminate this lease.
D.If Landlord notifies Tenant that Landlord cannot substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty loss, Landlord may: (1) choose not to restore and terminate this lease; or (2) choose to restore, notify Tenant of the estimated time to restore, and give Tenant the option to terminate this lease by notifying Landlord within 10 days.
E.If this lease does not terminate because of a casualty loss, rent will be reduced from the date Tenant notifies Landlord of the casualty loss to the date the leased premises are substantially restored by an amount proportionate to the extent the leased premises are unusable.
29.CONDEMNATION: If after a condemnation or purchase in lieu of condemnation the leased premises are totally unusable for the purposes stated in this lease, this lease will terminate. If after a condemnation or purchase in lieu of condemnation the leased premises or Property are partially unusable for the purposes of this lease, this lease will continue and rent will be reduced in an amount proportionate to the extent the leased premises are unusable. Any condemnation award or proceeds in lieu of condemnation are the property of Landlord and Tenant has no claim to such proceeds or award. Tenant may seek compensation from the condemning authority for its moving expenses and damages to Tenant's personal property.
30.ATTORNEY'S FEES: Any person who is a prevailing party in any legal proceeding brought under or related to the transaction described in this lease is entitled to recover prejudgment interest, reasonable attorney's fees, and all other costs of litigation from the nonprevailing party.
31.REPRESENTATIONS:
A.Tenant's statements in this lease and any application for rental are material representations relied upon by Landlord. Each party signing this lease represents that he or she is of legal age to enter into a binding contract and is authorized to sign the lease. If Tenant makes any misrepresentation in this lease or in any application for rental, Tenant is in default.
B.Landlord is not aware of any material defect on the Property that would affect the health and safety of an ordinary person or any environmental hazard on or affecting the Property that would affect the

									
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health or safety of an ordinary person, except: ________________________________________.
C.Each party and each signatory to this lease represents that: (1) it is not a person named as a Specially Designated National and Blocked Person as defined in Presidential Executive Order 13224; (2) it is not acting, directly or indirectly, for or on behalf of a Specially Designated and Blocked Person; and (3) is not arranging or facilitating this lease or any transaction related to this lease for a Specially Designated and Blocked Person. Any party or any signatory to this lease who is a Specially Designated and Blocked person will indemnify and hold harmless any other person who relies on this representation and who suffers any claim, damage, loss, liability or expense as a result of this representation.
32.BROKERS:
A.The brokers to this lease are:
																		
	Principal Broker:		UTR Realtor/Commercial Division		Cooperating Broker	NAI Partners
	Agent: 		The Rowsey Group / Sharon Rowsey		Agent:	Griff Bandy
	Address:		17000 El Camino #107		Address:	1900 West Loop South, Suite 500
			Houston, Texas 77058			Houston, Texas 77027
	Phone & Fax:		(713) 922-7701		Phone & Fax: 	(713) 629-0504
	E-mail:				E-mail:	
	License No.:		0483822		License No.:	
						
	Principal Broker: (Check only one box)					
	☒	represent Landlord only.				
	☐	represent Tenant only.				
	☐	is an intermediary between Landlord and Tenant				

B.Fees:
															
		☒	(1)	Principal Broker's fee will be paid according to: (Check only one box).	
			☒	(a)	a separate written commission agreement between Principal Broker and:
					☒ Landlord ☐ Tenant.
			☐	(b)	the attached Commercial Lease Addendum for Broker's Fee (TXR-2102).
					
		☒	(2)	Cooperating Broker's fee will be paid according to: (Check only one box).	
			☒	(a)	a separate written commission agreement between Cooperating Broker and: 
					☐Principal Broker ☒Landlord ☐Tenant
			☐	(b)	the attached Commercial Lease Addendum for Broker's Fee (TXR-2102).

33.ADDENDA: Incorporated into this lease are the addenda, exhibits and other information marked in the Addenda and Exhibit section of the Table of Contents. If Landlord's Rules and Regulations are made part of this lease, Tenant agrees to comply with the Rules and Regulations as Landlord may, at its discretion, amend from time to time.
34.NOTICES: All notices under this lease must be in writing and are effective when hand-delivered, sent by mail, or sent by facsimile transmission to:
																					
		Landlord at:
		Tannos Land Holding III, LLC			
				Address:	810 S Friendswood Dr, Friendswood, TX 77546		
							

									
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	Commercial Lease concerning:	505 S Friendswood Dr
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				Phone:		Fax:	
		and a copy to:					
				Address:			
				Phone:		Fax:	
		☒	Landlord also consents to receive notices by e-mail at: 				
		Tenant at the leased premises,
					
		and a copy to:		Castle Biosciences, Inc.			
				Address:			
				Phone:	(832) 974-1556	Fax:	
		☒	Tenant also consents to receive notices by e-mail at: _________________				

35.SPECIAL PROVISIONS:

See the attached Addendum to Commercial Lease and Construction Agreement.

36.AGREEMENT OF PARTIES:
A.Entire Agreement: This lease contains the entire agreement between Landlord and Tenant and may  not be changed except by written agreement.
B.Binding Effect: This lease is binding upon and inures to the benefit of the parties and their respective heirs, executors, administrators, successors, and permitted assigns.
C.Joint and Several: All Tenants are jointly and severally liable for all provisions of this lease. Any act or notice to, or refund to, or signature of, any one or more of the Tenants regarding any term of this lease, its renewal, or its termination is binding on all Tenants.
D.Controlling Law: The laws of the State of Texas govern the interpretation, performance, and enforcement of this lease.
E.Severable Clauses: If any clause in this lease is found invalid or unenforceable by a court of law, the remainder of this lease will not be affected and all other provisions of this lease will remain valid and enforceable.
F.Waiver: Landlord's delay, waiver, or non-enforcement of acceleration, contractual or statutory lien, rental due date, or any other right will not be deemed a waiver of any other or subsequent breach by Tenant or any other term in this lease.

									
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G.Quiet Enjoyment: Provided that Tenant is not in default of this lease, Landlord covenants that Tenant will enjoy possession and use of the leased premises free from material interference.
H.Force Majeure: If Landlord's performance of a term in this lease is delayed by strike, lock-out, shortage of material, governmental restriction, riot, flood, or any cause outside Landlord's control, the time for Landlord's performance will be abated until after the delay.

I.Time: Time is of the essence. The parties require strict compliance with the times for performance.

Brokers are not qualified to render legal advice, property inspections, surveys, engineering studies, environmental assessments, tax advice, or compliance inspections. The parties should seek experts  to render such services. READ THIS LEASE CAREFULLY. If you do not understand the effect of this Lease, consult your attorney BEFORE signing.

																											
	Landlord:			Tannos Land Holding III, LLC		Tenant:			Castle Biosciences, Inc.
									
	By:					By:			
		By (signature):		/s/ Louis T. Tannos			By (signature):		/s/ Derek Maetzold
		Printed Name:		Louis T. Tannos			Printed Name:		Derek Maetzold
		Title:		President			Title:		President and CEO
		Date:		12/16/19			Date:		12/17/19
	By:					By:			
		By (signature):					By (signature):		
		Printed Name:					Printed Name:		
		Title:					Title:		

									
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COMMERCIAL LEASE ADDENDUM FOR EXPENSE REIMBURSEMENT
USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS®, INC. IS NOT AUTHORIZED.
©Texas Association of REALTORS®, Inc. 2010

			
	

ADDENDUM TO THE COMMERCIAL LEASE BETWEEN THE UNDERSIGNED PARTIES CONCERNING
THE LEASED PREMISES AT 505 S Friendswood Dr, Friendswood, TX 77546,    
			
	

In addition to rent stated in the lease, Tenant will pay Landlord the additional rent described in this addendum. Tenant will pay the additional rent each month at the time the base-monthly rent in the lease is due.
A.Definitions:
(1)“Tenant's pro rata share” is  40.520 %.
(2)“CAM” means all of Landlord's expenses reasonably incurred to maintain, repair, operate, manage,  and secure the Property (for example, security, lighting, painting, cleaning, decorations, utilities, trash removal, pest control, promotional expenses, and other expenses reasonably related the Property's operations); CAM does not include capital expenditures, interest, depreciation, tenant improvements, insurance, taxes, or brokers' leasing fees Notwithstanding the foregoing, CAM does include the amortized costs incurred by Landlord in making capital improvements or other modifications to the Property to the extent such improvements or modifications reduce CAM overall. These costs will be amortized over the useful life of the improvement or modification on a straight-line basis; however, in  no event will the charge for such amortization included in CAM exceed the actual reduction in CAM achieved by the improvements and modifications.
(3)“Insurance” means Landlord's costs to insure the leased premises and the Property including but not limited to insurance for casualty loss, general liability, and reasonable rent loss.
(4)“Taxes” means the real property ad valorem taxes assessed against the leased premises and Property inclusive of all general and special assessments and surcharges.
(5)“Structural” means all of Landlord's expenses reasonably incurred to maintain, repair, and replace the roof, foundation, exterior walls, load bearing walls and other structural components of the Property.
B.Method: The additional rent will be calculated under the following method:
Note: “CAM” does not include taxes and insurance costs.
									
	☐	(1)	Base-year expenses: Each month Tenant will pay Tenant's pro rata share of the projected monthly expenses for the Property that exceed the amount of the monthly base-year expenses for the calendar year    for: ☐taxes; ☐insurance; ☐CAM; ☐structural; and ☐_________________

			

			
	☐	(2)	Expense-stop: Each month Tenant will pay Tenant's pro rata share of the projected monthly expenses for the Property that exceed $________________ per square foot per year for: ☐ taxes; ☐insurance; ☐ CAM; ☐ structural; and ☐______________________________________________________.
			
	☒	(3)	Net: Each month Tenant will pay Tenant's pro rata share of the projected monthly expenses for the Property for: ☒taxes; ☒insurance; ☒ CAM; ☐ structural; and ☐_____________________________
			_____________________________________________________________________________________.

C.Projected Monthly Expenses: On or about December 31 of each calendar year, Landlord will project the applicable monthly expenses (those that Tenant is to pay under this addendum) for the following calendar year and will notify Tenant of the projected expenses. The projected expenses are based on Landlord's estimates of such expenses. The actual expenses may vary.

									
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Expense Reimbursement Addendum concerning 505 S Friendswood Dr, Friendswood, TX 77546, 

Notice: The applicable projected expenses at the time which the above-referenced lease commences are shown  in  the  table  below.  The  total  area  of  the  Property  presently  used  by  Landlord  for calculating
expense reimbursements is 53,702 rentable square feet (including any add on factor for common areas).

						
	Projected Expenses	
	$ Monthly Rate	$ Annual Rate
	$0.70 / rsf / month
	$8.40 / rsf / year

D.Reconciliation: Within a reasonable time after the end of each calendar year, Landlord will notify Tenant of the actual costs of the applicable expenses (those that Tenant is to pay under this addendum) for the previous year. If the actual costs of the applicable expenses exceed the amounts paid or owed by Tenant for the previous year, Tenant must pay the deficient amount to Landlord within 30 days after Landlord notifies Tenant of the deficient amount. If the actual costs of the applicable expenses are less than the amounts paid by Tenant for the previous year, Landlord will refund the excess to Tenant or will credit the excess to Tenant's next rent payment. Tenant may audit or examine those items in Landlord's records that relate to Tenant's obligations under this addendum. Landlord will promptly refund to Tenant any overpayment revealed by an audit or examination. If the audit or examination reveals an error of more than 5% over the amounts Landlord collected in a calendar year from Tenant under this addendum, Landlord will pay the reasonable cost of the audit or examination. Landlord may not seek a deficiency from Tenant under this paragraph if Landlord fails to timely provide the required notice.
E.Special Provisions:

																											
	Landlord:			Tannos Land Holding III, LLC		Tenant:			Castle Biosciences, Inc.
									
	By:					By:			
		By (signature):		/s/ Louis T. Tannos			By (signature):		/s/ Derek Maetzold
		Printed Name:		Louis T. Tannos			Printed Name:		Derek Maetzold
		Title:		President			Title:		President and CEO
	By:					By:			
		By (signature):					By (signature):		
		Printed Name:					Printed Name:		
		Title:					Title:		

									
	(TXR-2103) 1-26-10		Page 2 of 2

			

ADDENDUM TO COMMERCIAL LEASE

This Addendum to Commercial Lease (this “Addendum”), is attached to, and made a part of, that certain Commercial Lease (separately, “the Lease” or, as modified hereby, “this Lease”) by and between TANNOS LAND HOLDING III, LLC, as Landlord, and CASTLE BIOSCIENCES, INC., as Tenant, and relating to approximately 21,760 square feet of rentable area (the “Leased Premises”) located at 505 S. Friendswood Drive, Friendswood, Brazoria County, Texas 77546.  All terms herein which have a defined meaning in the Lease have the same meaning when used herein unless otherwise expressly stated to the contrary.  

The following terms are made part of, and incorporated by reference into, the Lease:

1.Term.  The Commencement Date shall occur on the earlier of (i) August 1, 2020, or (ii) the fifth (5th) business day after the leasehold improvements to be constructed by Landlord in the Leased Premises pursuant to the Commercial Lease Construction Addendum (the “Landlord’s Work”) are Substantially Complete and notice thereof is delivered to Tenant.  The Landlord’s Work shall be “Substantially Complete” when the Landlord’s Work has been completed in accordance with the approved construction documents and Tenant is able to access and occupy the Leased Premises and conduct its business therein in a reasonable manner and (b) Landlord has obtained final inspection approval from all appropriate regulatory authorities for the Leased Premises, even though minor punchlist items remain to be completed.    Notwithstanding the foregoing, if the Landlord’s Work is not Substantially Complete by August 1, 2020, the Commencement Date shall be postponed until the Landlord’s Work is Substantially Complete and notice thereof is delivered to Tenant.  However, if the Landlord’s Work is not Substantially Complete by August 1, 2020 due to any Tenant Delay (as defined below), the Landlord’s Work shall be deemed to be Substantially Complete on the date the Landlord’s Work would have been Substantially Complete, but for such Tenant Delay.  As used herein, “Tenant Delay” means any delay in the Substantial Completion of the Landlord’s Work that is caused by (A) Tenant’s request for change orders to the construction documents previously approved by Landlord and Tenant, (B) Tenant’s failure to deliver or approve any required documentation the Construction Documents, and the like by the applicable deadline for doing so, and (C) Tenant’s failure to otherwise respond to any Landlord request within a reasonable period.  If the Landlord’s Work is not Substantially Complete by August 1, 2020 after taking any Tenant Delay into account, then Tenant shall be entitled to receive a day-for-day abatement of rent for each day that occurs after August 1, 2020 until the Landlord’s Work is Substantially Complete.
2.Parking.  Landlord shall provide Tenant up to four (4) unreserved parking spaces per 1,000 square feet of rentable area leased by Tenant in the Building (the “Unreserved Permits”) allowing access to unreserved areas in parking facilities for the Property (the “Parking Facilities”).  Tenant shall have the right to convert up to 9 of such unreserved parking spaces to reserved parking spaces in the locations of the Parking Facilities shown on the attached Schedule 1.  All unreserved and reserved parking spaces shall be provided to Tenant at no charge to Tenant during lease term.
3.Legal Compliance.  Landlord is not aware of any restriction, regulation or applicable law that would prohibit Tenant’s use of the Leased Premises for the use permitted in this Lease.  Landlord shall be responsible for any capital expenditure required to comply with any law, restriction or regulation applicable to the Leased Premises unless such compliance is due solely as a result of Tenant’s specific use of the Leased Premises or any alteration made by Tenant to the Leased Premises.  
4.Insurance.  Landlord shall maintain:  (1) commercial general liability insurance applicable to the Property which provides, on an occurrence basis, a minimum combined single limit of no less than $1,000,000; and (2) property insurance on all of the improvements of the Property in the amount of the full replacement cost thereof, as reasonably estimated by Landlord.  
									
	Addendum to Commercial Lease		Page 1

5.Waiver of Subrogation. Notwithstanding anything in this Lease to the contrary, Tenant waives, and shall cause its insurance carrier(s) and any other party claiming through or under such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery, claims, actions or causes of action against Landlord and its lienholder, officers, employees, contractors, agents and property manager for any claims, loss or damage to Tenant’s business, any loss of use of the Leased Premises, and any claims, loss, theft or damage to Tenant’s property (including Tenant’s automobiles or the contents thereof), INCLUDING ALL RIGHTS (BY WAY OF SUBROGATION OR OTHERWISE) OF RECOVERY, CLAIMS, ACTIONS OR CAUSES OF ACTION ARISING OUT OF THE NEGLIGENCE OF LANDLORD OR ANY OF LANDLORD’S AGENTS, EMPLOYEES OR CONTRACTORS, which loss or damage is (or would have been, had the insurance required by this Lease been maintained) covered by insurance.  In addition, notwithstanding anything in this Lease to the contrary, Landlord waives (except for any commercially reasonable deductible, not to exceed $20,000.00, associated with any claim), and shall cause its insurance carrier(s) and any other party claiming through or under such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery, claims, action or causes of action against Tenant and its officers, employees, contractors and agents for any loss of or damage to or loss of use of the Leased Premises, any additions or improvements in the Property, or any contents thereof, INCLUDING ALL RIGHTS (BY WAY OF SUBROGATION OR OTHERWISE) OF RECOVERY, CLAIMS, ACTIONS OR CAUSES OF ACTION ARISING OUT OF THE NEGLIGENCE OF TENANT OR ANY OF TENANT’S AGENTS, EMPLOYEES OR CONTRACTORS, which loss or damage is (or would have been, had the insurance required by this Lease been maintained) covered by insurance.   
6.Utilities.  Paragraph 7.C of the Lease is deleted in its entirety and replaced with the following paragraph:
“Notwithstanding anything to the contrary in this lease, (x) in the event of any interruption in any utility service to the extent caused by Landlord or its employees, agents or contractors and is not the result of any casualty or condemnation, and (y) if any such interruption renders all or any portion of the Leased Premises untenantable or not reasonably suitable for the permitted use, and such condition exists for three (3) consecutive business days after Landlord is aware of such interruption, then the Rent for the portion of the Leased Premises rendered untenantable or not reasonably suitable for the permitted use, shall abate based upon the pro rata portion of the Premises which is rendered untenantable or not reasonably suitable for the permitted use commencing retroactively on the first (1st) day of such interruption until the utility service is restored to the Leased Premises.”
7.Legal Compliance.  Notwithstanding anything to the contrary in Paragraph 10 of the Lease,
a.The text that reads “Except as otherwise set forth in this lease,” shall be added to the first and last sentences of Paragraph 10.C of the Lease.
8.Signs.  The following two (2) paragraphs are added to the end of Paragraph 11 of the Lease:  
“D.  During the term of this Lease, Tenant shall, at Tenant’s sole cost and expense, have the right to install a sign displaying its name on the top parapet on the front of the Building.  Notwithstanding the foregoing, the exact location, size, material, construction, appearance and design of any signage permitted by this paragraph shall be subject to (i) the prior written approval of Landlord, which shall not be unreasonably withheld, conditioned or delayed, and (ii) Tenant’s compliance with all applicable laws.  
D.Landlord agrees maintain Building directory signage identifying the tenants of the Building (“Directory Signage”) located in the lobby of the Building, and Tenant shall have the right to have its name placed on such Directory Signage.
9.Access by Landlord.  Paragraph 12B is deleted in its entirety.
10.Move-In Condition.  The last sentence of Paragraph 13 of the Lease is deleted in its entirety and replaced with the following sentence:   
“Landlord and any agent have made no express or implied warranties as to the condition or permitted use of the leased premises or Property, except as otherwise set forth in this lease or in an addendum.”  
11.Move-Out Condition and Forfeiture of Tenant’s Personal Property.  Paragraph 14.A of the Lease is deleted in its entirety and replaced with the following paragraph:
“At the time this lease ends, Tenant will surrender the leased premises in the same condition as it existed on the Commencement Date, except for normal wear and tear, casualty damage that Tenant is not required to repair, condemnation loss, and any repairs that are Landlord’s responsibility under this lease.”  Tenant will leave the leased premises in a clean condition free of all trash, debris, personal property, hazardous materials and environmental contaminants.
									
	Addendum to Commercial Lease		Page 2

12.Maintenance and Repair.  Landlord shall maintain in good order, condition and repair the common areas and the exterior structural walls, load bearing walls, the outside face of the exterior walls, foundations, the roof of the Building, Utility Facilities (as defined below) and the sprinklers up to the point they enter the Leased Premises.  Tenant shall provide to Landlord prompt written notice of the need of such repairs or maintenance.  As used herein, the term “Utility Facilities” means any and all systems, machinery, facilities, installations, supply lines, transformers, pipes, conduits, ducts, penetrations, components, appurtenances and equipment, owned by Landlord and located on or at the Property, for the generation or supply of any utilities (including, without limitation, any individual HVAC units owned or maintained by Landlord).  Tenant shall have no responsibility to correct or remedy: (i) any violations of Laws related in any way to the cleanliness, maintenance, occupancy, condition and use of the Property existing on or prior to the Commencement Date; (ii) any violations of Laws caused solely by the action or inaction of Landlord, or its employees, agents or contractors (the “Landlord Parties”) and not by Tenant in whole or in part; or (iii) any violations of Laws applicable to buildings generally, provided that Tenant shall be responsible for complying with all Laws related to Tenant’s specific use of or alteration to the Property and all costs related thereto. Landlord shall be obligated to correct or remedy its obligations in the foregoing items (i)-(iii) at its sole cost and expense, without reimbursement from Tenant.  Tenant shall be obligated to correct or remedy its obligations in the foregoing item (iii) at its sole cost and expense, without reimbursement from Landlord.” 
13.Alterations.  The following sentence is added after the last sentence of Paragraph 16.D:  
“Tenant shall be permitted to install and remove at any time during the Term its trade fixtures and equipment; provided, however, that Tenant shall be responsible for repairing any damage caused to the Property by the installation or removal of such trade fixtures and equipment.”   
14.Liability.  The first sentence of Paragraph 18 is deleted in its entirety and replaced with the following sentence: 
“To the extent permitted by law and not caused by the gross negligence or intentional misconduct of Landlord or the Landlord Parties, Landlord is NOT responsible to Tenant or Tenant’s employees, patrons, guests, or invitees for any damages, injuries, or losses to person or property caused by:”
15.Paragraph 20.B of the Lease is deleted and replaced with the following paragraph: 
“B. Tenant’s failure to pay all or any portion of the base monthly rent, additional rent or any other amount payable by Tenant hereunder when due, and the continuation of such failure for a period of 5 business days after Tenant receives written notice of such failure from Landlord, provided that the Landlord shall only be obligated to give Tenant written notice of its failure to pay two times in any twelve consecutive month period of the Term of the leased premises. 
16.Landlord’s Lien and Security Interest.  Paragraph 23 of the Lease is deleted in its entirety and replaced with the following paragraph: 
“Tenant shall have the absolute right from time to time during the Term hereof and without Landlord’s further approval, written or otherwise, but upon written notice to Landlord, to grant and assign to Tenant’s lender or lenders a security interest in Tenant’s personal property.  Landlord agrees to execute and deliver to such lenders the form of collateral access agreement attached hereto as Exhibit A-1 and such other documents as such lenders may reasonably request upon receipt of such request (collectively, the “Collateral Access Agreement”).    If requested by Tenant, Landlord shall agree to subordinate any contractual, statutory or other Landlord’s lien Landlord may have on Tenant’s property to any lien placed upon the said property or estate during the term of this Lease by Tenant’s lender(s).”  
17.Assignment.  The following is added to Paragraph 24 of the Lease: 
“Notwithstanding anything in the lease to the contrary, Tenant may assign all or part of its interest in this Lease or sublease all or part of the Premises (a "Permitted Transfer") to the following types of entities (a "Permitted Transferee") without the consent of Landlord:
a.an affiliate of Tenant;
b.any corporation, limited partnership, limited liability partnership, limited liability company or other business entity in which or with which Tenant, or its corporate successors or assigns, is merged or consolidated, in accordance with applicable statutory provisions governing merger and consolidation of business entities, so long as (A) Tenant's obligations hereunder are assumed by the entity surviving such merger or created by such consolidation; and (B) the tangible net worth of the surviving or created entity is not less than the tangible net worth of Tenant immediately preceding such transaction; or
									
	Addendum to Commercial Lease		Page 3

c.any corporation, limited partnership, limited liability partnership, limited liability company or other business entity acquiring all or substantially all of Tenant's assets if such entity's tangible net worth after such acquisition is not less than the tangible net worth of Tenant immediately preceding such transaction.
Tenant shall promptly notify Landlord of any such Permitted Transfer.  Tenant shall remain liable for the performance of all of the obligations of Tenant hereunder, or if Tenant no longer exists because of a merger, consolidation, or acquisition, the surviving or acquiring entity shall expressly assume in writing the obligations of Tenant hereunder.  The occurrence of a Permitted Transfer shall not waive Landlord's rights as to any subsequent assignments or subleases.”   
18.CAM Charges.  Notwithstanding anything to the contrary in this Lease, the term “CAM” (as defined in the Commercial Lease Addendum for Expense Reimbursement) shall not include any of the following: (i) except as expressly set forth in definition of CAM, the cost of any capital improvements or any depreciation or amortization thereof; (ii) principal and interest payments on any debts on the Property; (iii) the cost of repairs or other work to the extent Landlord is reimbursed by insurance or condemnation proceeds, or is reimbursed pursuant to warranties or service contracts; (iv) costs in connection with leasing space in the Building or elsewhere within the Property, including without limitation brokerage commissions, attorneys’ fees, expenses for preparation of leases, expenses related to constructing improvements for the sole benefit of an individual tenant, advertising and other marketing expenses, and lease concessions (including assumption of rent under existing leases), rental abatements and construction allowances granted to specific tenants; (v) costs incurred in connection with the sale, financing or refinancing of the Building or the Property, including without limitation legal, auditing, consulting and professional fees paid or incurred in connection therewith; (vi) fines, interest and penalties incurred by Landlord, including without limitation those due to the late payment of Taxes (as defined below) or other expenses for which Landlord is responsible; (vii) organizational expenses associated with the creation and operation of the entity which constitutes Landlord; (viii) any penalties or damages that Landlord pays to Tenant under the Lease or to other tenants in the Building under their respective leases; (ix) the amount of rent or other charges payable under and pursuant to any ground lease or superior lease pertaining to the Property, except to the extent inclusive of taxes or insurance; (x) costs, fees, and compensation paid to Landlord or to any affiliate of Landlord for services in or to the Property to the extent that they exceed the charges for comparable services generally charged by an unaffiliated third party of comparable skill, competence, stature, and reputation; (xi) services and costs for which Tenant or any other tenant or occupant of the Building or third person specifically reimburses Landlord in addition to its pro rata share of common area maintenance charges; (xii) contributions to charitable or political organizations; (xiii) costs relating to disputes between Landlord and a specific tenant of the Building; (xiv)  contributions to operating expense reserves other than reserved for taxes and insurance payable under this Lease; (xv) costs relating to disputes between Landlord and tenant(s) of the Property.   
19.Renewal Option.  Tenant shall have the option to renew the term of this Lease pursuant to the Renewal Option attached hereto as Exhibit A-1, which is incorporated herein for all purposes. 
20.Right of First Refusal.  Tenant shall have the right to lease additional space on the third (3rd) floor of the Building pursuant to the Right of First Refusal attached hereto as Exhibit A-2, which is incorporated herein for all purposes. 
 [Signature Page to Follow]

									
	Addendum to Commercial Lease		Page 4

Landlord and Tenant execute this Addendum to be effective as of the date of the Lease.
LANDLORD:   
TANNOS LAND HOLDING III, LLC 

						
	By:	/s/ Louis T. Tannos
	Name:	Louis T. Tannos
	Title:	President

TENANT:
CASTLE BIOSCIENCES, INC. 

						
	By:	/s/ Derek Maetzold
	Name:	Derek Maetzold
	Title:	President and CEO

									
	Addendum to Commercial Lease		Page 5

Exhibit A-1
to
Addendum to Commercial Lease
RENEWAL OPTION

(a) Provided that this Lease is in full force and effect as of the date of the Renewal Notice (as such term is hereinafter defined), and (ii) Tenant shall not be in default beyond any applicable notice and cure period under this Lease, Tenant shall have one (1) option to extend the term of this Lease for an additional term of five (5) years (the “Renewal Term”).  Tenant’s option with respect to the Renewal Term shall be exercisable by written notice (the “Renewal Notice”) to Landlord given not less than twelve (12) months prior to the expiration of the term of this Lease.  The Renewal Term shall constitute an extension of the term of this Lease and shall be upon all of the same terms and conditions as the initial Term, except that (i) there shall be no further option to renew the term of the Lease, and (ii) the base monthly rent for the Renewal Term shall be as determined pursuant to the provisions below, and shall commence on the first day of the Renewal Term.  

(b) The base monthly rent for the Leased Premises for the Renewal Term shall be the Fair Market Rent, provided, in no event shall the Fair Market Rent by more than 110%, nor less than 90%, of the base monthly rent payable during the initial term of this Lease.  “Fair Market Rent” means the base rent for comparable space in Class “A” buildings in the Friendswood, Texas area that a willing lessee would pay and a willing lessor would accept for the Leased Premises during the Renewal Term, taking into account all relevant factors, including, but not limited to, lease takeovers/assumptions; relocation/moving allowances; space planning/interior architecture and engineering allowances; refurbishment and repainting allowances; club memberships; other concessions or inducements; extent of services provided or to be provided; distinction between "gross" and "net" lease; base year or dollar amount for escalation purposes (both operating and ad valorem/real estate taxes); any other adjustments (including by way of indexes) to base rental; credit standing and financial stature of the tenant; term or length of lease; the time the particular rental rate under consideration was agreed upon and became or is to become effective; the payment of a leasing commission and/or fees/bonuses in lieu thereof, whether to Landlord, any person or entity affiliated with Landlord, or otherwise.
(c) If Tenant timely exercises the Renewal Option pursuant to this Exhibit, Landlord shall notify Tenant (the “Rent Notice”) within 30 days of Tenant’s exercise of the Renewal Option, if applicable, of the Fair Market Rent during such Renewal Term (“Landlord’s Determination”).  Tenant shall notify Landlord (“Tenant’s Notice”), within 30 days after Tenant’s receipt of the Rent Notice, except as provided in the last sentence of this Section (c), whether Tenant accepts or disputes Landlord’s Determination, and if Tenant disputes Landlord’s Determination, Tenant’s Notice shall set forth Tenant’s determination (“Tenant’s Determination”) of the Fair Market Rent during the applicable Renewal Term.  If Tenant fails to give Tenant’s Notice within such 30-day period, then Tenant shall be deemed to have timely accepted Landlord’s Determination.
(d) If Tenant timely disputes Landlord’s Determination, and Landlord and Tenant fail to agree as to the Fair Market Rent within 30 days after the giving of the earlier of Tenant's Notice or Tenant’s Determination (the “Negotiation Period”), then Tenant may, by providing Landlord written notice no later than the expiration of the Negotiation Period, elect to (i) retract its Renewal Notice and not exercise the renewal option set forth in this Exhibit, in which case such renewal option shall become null and void (the “Retraction Notice”), or (ii) elect to proceed with exercising the renewal option set forth in this Exhibit, in which case the Fair Market Rent shall be determined by arbitration as set forth in this paragraph (the “Arbitration Notice”).  In the event Tenant fails to provide Landlord with the Retraction Notice or Arbitration Notice prior to the expiration of the Negotiation Period, Tenant shall be deemed to have retracted its Renewal Notice and elected not to exercise the renewal option set forth in this Exhibit, in which case such renewal option shall become null and void. In the event Tenant timely delivers the Arbitration Notice to Landlord, Fair Market Rent shall be determined as follows: A senior officer of a recognized Houston, Texas leasing brokerage firm (the “Baseball Arbitrator”) shall be selected and paid for jointly by Landlord and Tenant.  If Landlord and Tenant are unable to agree upon the Baseball Arbitrator, then the same shall be designated by the American Arbitration Association (the “AAA”).  The Baseball Arbitrator selected by the parties or designated by the AAA shall have at least ten years’ experience in (i) the leasing of first-class office space in the Friendswood, Texas area, or (ii) the appraisal of Class “A” office buildings in the Friendswood, Texas area.  Landlord and Tenant shall each submit to the Baseball Arbitrator and to the other Landlord’s Determination and Tenant’s Determination of the Fair Market Rent of the Leased Premises.  The Baseball Arbitrator shall determine which of the two rent determinations more closely represents the Fair Market Rent of the Leased Premises for the Renewal Term.  The Baseball Arbitrator may not select any other rental value for the Leased Premises other than one submitted by Landlord or Tenant.  The determination of the party so selected or designated shall be binding upon Landlord and Tenant and shall serve as the basis for the determination of the base monthly rent payable for the Renewal Term, 
									
	Addendum to Commercial Lease		Page 6

subject to further adjustment as provided in the Lease.  After a determination has been made of the Fair Market Rent, the parties shall execute and deliver an instrument setting forth the Fair Market Rent, but the failure to so execute and deliver any such instrument shall not affect the determination of Fair Market Rent.

(e) If Tenant disputes Landlord’s Determination and if the final determination of Fair Market Rent shall not be made on or before the first day of the Renewal Term then, pending such final determination, Tenant shall pay, as base monthly rent for the Renewal Term, an amount equal to Landlord’s Determination.  If, based upon the final determination of the Fair Market Rent, the base monthly rent payments made by Tenant for such portion of the Renewal Term were (i) less than the Fair Market Rent payable for the Renewal Term, Tenant shall pay to Landlord the amount of such deficiency within 20 days after demand therefor or (ii) greater than the Fair Market Rent payable for the Renewal Term, Landlord shall refund the excess within 20 days after such determination.

									
	Addendum to Commercial Lease		Page 7

Exhibit A-2
to
Addendum to Commercial Lease

RIGHT OF FIRST REFUSAL

(a) Subject to and upon the terms, provisions and conditions set forth in this Exhibit, so long as Tenant is not in default of this Lease beyond any applicable notice and/or cure period, Tenant shall have, and is hereby granted, a continuing right of first refusal to lease (the “Right of First Refusal”) all or any portion of the portion of the remainder of the third (3rd) floor of the Building (the “ROFR Premises”), during the Term of the Lease which becomes Available.  As used herein, the term “Available” means, as to any space, that such space is vacant and free of any present or future possessory right now or, to the extent specified in section (e) below, hereafter existing in favor of any third party.  

(b) Should a third party make an offer to lease the ROFR Premises which Landlord is willing to accept, Landlord shall promptly deliver to Tenant written notice indicating the relevant terms and conditions of such third -party offer (the “Lease Proposal”).  If the ROFR Leased Premises is the subject of lease negotiations which include other portions of the Building, the foregoing Right of First Refusal shall, at Landlord’s option, apply to the entire space which is subject to such negotiations, and, at Landlord’s option, Tenant shall be obligated to either accept or refuse the opportunity to lease such entire space on the terms provided in the Lease Proposal, except that the term with respect to the ROFR Premises shall be co-terminus with the term of the Lease and the economic components of the third party proposal which are amortized over the term shall be adjusted to account for the difference between the term of the third party offer and the remaining term of the Lease.  In the event that the term of this Lease is longer than the third-party offer, then the base monthly rent, at Landlord’s option, for such additional period shall be the Fair Market Rent (as defined in Exhibit G) determined at the time such third-party offer would have otherwise expired.  Tenant shall have a period of five (5) business days after receipt of a Lease Proposal to irrevocably and unconditionally exercise its Right of First Refusal to lease the entire ROFR Premises (and such additional space, if applicable).  Such exercise must be in writing and received by the Landlord within such five (5) business day period.    If Landlord fails to receive written notice of the Tenant’s exercise of its Right of First Refusal within such five (5) business day period then Tenant shall be deemed to not have timely exercised such right.

(c) In the event that Tenant exercises this Right of First Refusal, Tenant will execute and return to Landlord an amendment to this Lease adding the ROFR Premises or such other documentation as Landlord shall reasonably require in order to confirm the leasing of such ROFR Premises (but an otherwise valid exercise of the Right of First Refusal shall be fully effective whether or not such confirmatory documentation is executed) within twenty (20) days after Tenant’s receipt of such documentation. 
 
(d) If Landlord does not receive written notice from Tenant of its exercise of this Right of First Refusal within the five (5) business day period referenced in subparagraph (b) above, Landlord shall have a period of up to two hundred seventy (270) days thereafter to lease the ROFR Premises for an effective rental rate not less than ninety percent (90%) of the rental rate reflected in the Lease Proposal (on a net effective basis taking into account all economic components of the transaction).  If Landlord does not lease the ROFR Premises within said two hundred seventy (270) day period or proposes to lease the ROFR Premises for an effective rental rate of less than ninety percent (90%) of the effective rental rate reflected in the Lease Proposal, the Right of First Refusal shall then reapply on any subsequent leasing thereof on the terms set forth herein.

(e) Tenant acknowledges and agrees that this Right of First Refusal is subject and subordinate to (a) any pre-existing preferential right, refusal right, expansion right or related right of any other tenant in the Building, (b) any and all preferential rights, expansion options, refusal rights pertaining to the ROFR Premises, and (c) the right to renew the lease of any existing tenant of the ROFR Premises, whether by formal renewal option or otherwise.  

(f) Except as otherwise provided in the Lease Proposal, Landlord shall deliver, and Tenant shall accept, the ROFR Premises broom-clean and vacuumed but otherwise in an “AS IS” and “WITH ALL FAULTS” condition. The term of this Lease with respect to the ROFR Premises shall commence upon such space being delivered to Tenant and shall expire on the Expiration Date.  Rent will accrue and be due and payable with respect to the ROFR Premises on the date (the “ROFR Premises Commencement Date”) that is consistent with the Lease Proposal.

(g)  Upon request of Landlord at any time after the ROFR Premises Commencement Date, Tenant shall execute and deliver to Landlord a declaration (in a form provided by Landlord) specifying (i) the ROFR Premises Commencement Date, (ii) the base monthly rent schedule for the ROFR Premises, (iii) the Rentable Area of the ROFR Premises, and (iv) Tenant’s Share of Operating Expenses with respect to the ROFR Premises.

									
	Addendum to Commercial Lease		Page 8

CONSTRUCTION AGREEMENT
This Construction Agreement is attached as an Exhibit to that certain Commercial Lease (the “Lease”) between Tannos Land Holding III, LLC, as Landlord, and Castle Biosciences, Inc., as Tenant, relating to the lease by Landlord to Tenant of that certain 21,760 square feet in the building located at 505 S Friendswood Drive, Friendswood, TX 77546.  Unless otherwise specified, all capitalized terms used in this Construction Agreement shall have the same meanings as in the Lease as amended by the Amendment.
1.Approved Plans.
(a)Plans.  No later than forty (40) days after the date of this lease,  Tenant shall submit to Landlord plans and specifications for construction of the improvements in the Leased Premises (the “Plans”).
(b)Landlord’s Approval.  Within ten (10) days following and  receipt of the Plans, Landlord shall approve or disapprove such Plans in writing.  If Landlord disapproves, Landlord shall provide Tenant in writing specific reasons for such disapproval.  Tenant shall submit corrected Plans within ten (10) days of receipt of Landlord’s disapproval notice.  Landlord shall approve or disapprove the corrected Plans within five (5) additional days from receipt thereof.  Upon Landlord’s approval, the Plans shall become the “Approved Plans”.
2.Pricing and Bids.
(a)Estimates.  Following receipt of the Approved Plans, Landlord will cause its affiliated company, Tannos Construction, to competitively bid price the construction of the Work in accordance with the Approved Plans with three (3) vendors (or subcontractors, as applicable) per line item and furnish the written bids to Tenant.  There shall be no construction management fee payable by Tenant to Landlord for its review of the Plans or management of the Work.
(b)Approved Pricing.  Upon receipt, Tenant shall promptly review such estimates and complete negotiations with Landlord for any changes or adjustments thereto.  Within ten (10) days after such receipt, Tenant shall return the selected bids with written approval to Landlord.
3.Construction Allowance.  Landlord will contribute $25.00 per square foot of rentable area in the Leased Premises (the “Construction Allowance”) toward the cost of constructing the Work in accordance with this Construction Agreement.  The cost of all space planning, design, consulting or review services and construction drawings, installation of cabling, and moving into the Leased Premises shall be included in the cost of the Work and may be paid out of the Construction Allowance, to the extent sufficient funds are available for such purpose.  All costs of the constructing the Work in accordance with this Construction Agreement in excess of the Construction Allowance shall be paid by Tenant.
4.The Work.  Subject to the terms of this Construction Agreement, Landlord agrees to cause permanent leasehold improvements to be constructed in the Leased Premises (the “Work”) by Tannos Construction & Development, LLC in a good and workmanlike manner in accordance with the Approved Plans and the approved bids, on a cost plus 13% basis (such amount being 8% profit and overhead and 5% for general conditions), and all accounting for the construction of the Work will be on an ''open book" basis..  Landlord agrees to obtain a warranty against any defects in the Work from its general contractor for the benefit of Tenant.  
5.Change Orders and Cost Overruns.  All changes to, and deviations from, the Approved Plans (each, a “Change Order”), including any (i) direction of Tenant to omit any portion of the Work, (ii) additional architectural or engineering services, (iii) changes to materials whether standard materials, specially ordered materials, or specially fabricated materials, (iv) cancellation or modification of supply or fabrication orders, and (v) removal or alteration of any portion of the Work, must be approved in advance in writing by Landlord and Tannos Construction.  Except as otherwise expressly provided in this Construction Agreement, all costs of the Work in excess of the Construction Allowance (collectively, “Cost Overruns”) shall be paid by Tenant to Landlord within twenty (20) days of Landlord’s invoice.  

        - i -

Landlord and Tenant execute this Construction Agreement to be effective as of the date of the Lease.
LANDLORD:   
TANNOS LAND HOLDING III, LLC 

						
	By:	/s/ Louis T. Tannos
	Name:	Louis T. Tannos
	Title:	President

TENANT:
CASTLE BIOSCIENCES, INC. 

						
	By:	/s/ Derek Maetzold
	Name:	Derek Maetzold
	Title:	President and CEO

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