Document:

Real Estate Lease Agreement Milpitas Industrial Partners

 EXHIBIT 10.8 
  
 Lease Agreement 
 (NNN Tenant Improvements) 
 Basic Lease Information 
  

	Lease Date:	  	February 18, 2003
		
	Landlord:	  	 MILPITAS INDUSTRIAL PROPERTIES, INC.
 a Delaware corporation

		
	Landlord’s Address:	  	 c/o Legacy Partners Commercial, Inc.
 4000 East Third Avenue, Suite 600
 Foster City, California 94404-4805

		
	Tenant:	  	 ALPHASMART INC.,
 a California
corporation

		
	Tenant’s Address:	  	 973 University Avenue
 Los Gatos,
CA 95032

		
	Premises:	  	Approximately 24,626 rentable square feet as shown on Exhibit A
		
	Premises Address:	  	 48541 Warm Springs Boulevard, Suite 501
 Fremont, CA 94539

			
	 	  	 Building 2 (“Building”):
 Lot:
 Fremont Industrial Center (“Park”):
	  	Approximately 110,592 rentable square feet
APN 510-1010-134 and 519-1010-011-26
Approximately 236,142 rentable square feet
		
	Term:	  	 April 1, 2003 (“Commencement Date”) through
 March 31, 2008 (“Expiration Date”)

		
	Base Rent (¶3):	  	Eleven Thousand Eighty-One and 70/100 Dollars ($11,081.70) / per month
		
	Rent Commencement Date:	  	June 1, 2003
			
	Adjustments to Base Rent:	  	April 1, 2004 – March 31, 2005	  	$11,574.22/ per month
	 	  	April 1, 2005 – March 31, 2006	  	$12,066.74/ per month
	 	  	April 1, 2006 – March 31, 2007	  	$12,559.26/ per month
	 	  	April 1, 2007 – March 31, 2008	  	$13,051.78/ per month
		
	Advance Rent (¶3):	  	Eleven Thousand Eighty-One and 70/100 Dollars ($11,081.70)
		
	Security Deposit (¶4):	  	Thirty-Five Thousand and 00/100 Dollars ($35,000.00)
		
	 *Tenant’s Share of operating Expenses (¶6.1):
 *Tenant’s Share of Tax Expenses (¶6.2):
 *Tenant’s Share of Common Area Utility Costs
(¶7.2):
	  	 10.43% of the Park
 10.43% of the
Park
 10.43% of the Park

	
	*The amount of Tenant’s Share of the expenses as referenced above shall be subject to modification as set forth in this Lease.
		
	Permitted Uses (¶9):	  	General office use, sales, distribution, warehousing and light assembly, but only to the extent permitted by the City of Fremont and all agencies and governmental
authorities having jurisdiction thereof.
		
	Parking Spaces:	  	Thirty (30) non-exclusive and non-designated spaces
		
	Broker (¶33):	  	Cole Sweatt and Martin Morid with Colliers International for Tenant Scott Borgia with CPS for Landlord
		
	Exhibits:	  	Exhibit A –                 Premises, Building, Lot and/or
Park
	 	  	Exhibit B –                 Tenant Improvements
	 	  	Exhibit C –                 Rules and Regulations
	 	  	Exhibit D –                 Covenants, Conditions and Restrictions (Intentionally
omitted)
	 	  	Exhibit E –                 Tenant’s Initial Hazardous Materials Disclosure
Certificate
	 	  	Exhibit F –                 Change of Commencement Date –
Example
	 	  	Exhibit G –                 Sign Criteria (Intentionally
omitted)

  

 TABLE OF CONTENTS 
  

	 	  	 	  	Page

	 1.
	  	 Premises
	  	1
			
	 2.
	  	 Occupancy, Adjustment of Commencement Date
	  	1
			
	 3.
	  	 Rent
	  	1
			
	 4.
	  	 Security Deposit
	  	2
			
	 5.
	  	 Condition of Premises; Tenant Improvements
	  	2
			
	 6.
	  	 Additional Rent
	  	3
			
	 7.
	  	 Utilities and Services
	  	7
			
	 8.
	  	 Late Charges
	  	8
			
	 9.
	  	 Use of Premises
	  	8
			
	 10.
	  	 Alterations; and Surrender of Premises
	  	10
			
	 11.
	  	 Repairs and Maintenance
	  	12
			
	 12.
	  	 Insurance
	  	14
			
	 13.
	  	 Limitation of Liability and Indemnity
	  	16
			
	 14.
	  	 Assignment and Subleasing
	  	17
			
	 15.
	  	 Subordination/UCC Lien Waiver
	  	20
			
	 16.
	  	 Right of Entry
	  	21
			
	 17.
	  	 Estoppel Certificate
	  	22
			
	 18.
	  	 Tenant's Default
	  	22
			
	 19.
	  	 Remedies for Tenant's Default
	  	23
			
	 20.
	  	 Holding Over
	  	24
			
	 21.
	  	 Landlord's Default
	  	25
			
	 22.
	  	 Parking
	  	25
			
	 23.
	  	 Transfer of Landlord's Interest
	  	25
			
	 24.
	  	 Waiver
	  	25
			
	 25.
	  	 Casualty Damage
	  	26
			
	 26.
	  	 Condemnation
	  	29
			
	 27.
	  	 Environmental Matters/Hazardous Materials
	  	29
			
	 28.
	  	 Financial Statements
	  	33
			
	 29.
	  	 General Provisions
	  	33
			
	 30.
	  	 Signs
	  	35
			
	 31.
	  	 Mortgagee Protection
	  	36
			
	 32.
	  	 Warranties of Tenant
	  	36
			
	 33.
	  	 Brokerage Commission
	  	37
			
	 34.
	  	 Quiet Enjoyment
	  	37
			
	 35.
	  	 ERISA Matters
	  	37
			
	 36.
	  	 Tenant's Ability to Perform Landlord's Unperformed Obligations
	  	38

  

 i 

 NNN Tenant Improvements 
 Lease Agreement 
  
 The Basic Lease Information set forth on Page 1 and this Lease are and shall be construed as a single instrument. 
  
 1. Premises. Landlord hereby leases the Premises to Tenant upon the terms and conditions contained herein. Tenant shall have the right to use, on a
non-exclusive basis, parking areas and ancillary facilities located within the Common Areas of the Park, subject to the terms of this Lease. Landlord and Tenant hereby agree that for purposes of this Lease, as of the Lease Date, the rentable square
footage area of each of the Premises, the Building, the Phase (if any) and the Park shall be deemed to be the number of rentable square feet as set forth in the Basic Lease Information. Tenant hereby acknowledges that the rentable square footage of
the Premises may include a proportionate share of certain areas used in common by all occupants of the Building, the Phase (if any) and/or the Park (for example corridors, common restrooms, an electrical room or telephone room). Tenant further
agrees that the number of rentable square feet of any of the Building, the Phase (if any) and the Park may subsequently change after the Lease Date commensurate with any modifications to any of the foregoing by Landlord, and Tenant’s Share
shall accordingly change. The term “Project” as used herein shall mean and collectively refer to the Building, the Common Areas, the Lot, the Phase (if any) and the Park. 
  
 2. Occupancy, Adjustment of Commencement Date 
  
 2.1 If Landlord, for any reason whatsoever, cannot deliver possession of the Premises to Tenant on the Commencement
Date in the condition specified in Section 5 hereof and as set forth in Exhibit B, (i) Landlord shall neither be subject to any liability nor shall the validity of the Lease be affected and (ii) none of the Rent Commencement Date,
Commencement Date, dates for Adjustments to Base Rent or Term of this Lease shall be affected in any manner whatsoever. If, pursuant to the terms of this Lease, the commencement date and/or the expiration date of this Lease is other than the
Commencement Date and Expiration Date specified in the Basic Lease Information, Landlord and Tenant shall execute a written amendment to this Lease, substantially in the form of Exhibit F hereto, wherein the parties shall specify the actual
commencement date, expiration date and the date on which Tenant is to commence paying Rent and any other provisions of this Lease that are to be modified accordingly (such as the dates for Adjustments to Base Rent, etc). Tenant and Landlord shall
execute and return such amendment to the other party within fifteen (15) days after receipt of same. The word “Term” whenever used herein refers to the initial term of this Lease and any valid extension(s) thereof. 
  
 2.2 If Landlord permits Tenant to occupy the Premises prior to the
actual Commencement Date, such occupancy shall be at Tenant’s sole risk and subject to all the provisions of this Lease. Additionally, Landlord shall have the right to impose additional reasonable conditions on Tenant’s early occupancy.

  
 3. Rent. On the date that Tenant executes this Lease,
Tenant shall deliver to Landlord the original executed Lease, the Advance Rent (which shall be applied against the Rent payable for 

 
the first month(s) Tenant is required to pay Rent), the Security Deposit, and all insurance certificates evidencing the insurance required to be obtained by
Tenant under Section 12 and Exhibit B of this Lease. Tenant agrees to pay Landlord the Base Rent, without prior notice or demand, abatement, offset, deduction or claim, in advance at Landlord’s Address commencing June 1, 2003 and
thereafter on the first (1st) day of each month throughout the balance of the Term of the Lease. In addition to the Base Rent, Tenant shall pay. Landlord in advance on the Commencement Date and thereafter on the first (1st) day of each month
throughout the balance of the Term of this Lease, as Additional Rent, Tenant’s Share of Operating Expenses, Tax Expenses, Common Area Utility Costs, and Utility Expenses. The term “Rent” whenever used herein refers to the aggregate of
all these amounts. If Landlord permits Tenant to occupy the Premises without requiring Tenant to pay rental payments for a period of time, the waiver of the requirement to pay rental payments shall only apply to the waiver of the Base Rent. The Rent
for any fractional part of a calendar month at the commencement or expiration or termination of the Lease Term shall be a prorated amount of the Rent for a full calendar month based upon a thirty (30) day month. To the extent not already paid as
part of the Advance Rent any prorated Rent shall be paid on June 1, 2003, and any prorated Rent for the final calendar month hereof shall be paid on the first day of the calendar month in which the date of expiration or termination occurs.

  
 4. Security Deposit. Simultaneously with Tenant’s
execution and delivery of this Lease, Tenant shall deliver to Landlord, as a Security Deposit for the faithful performance by Tenant of its obligations under this Lease, the amount specified in the Basic Lease Information. If Tenant is in default
hereunder, Landlord may, but without obligation to do so, use all or any portion of the Security Deposit to cure the default or to compensate Landlord for all damages sustained by Landlord in connection therewith. Tenant shall, immediately on
demand, pay to Landlord a sum equal to the portion of the Security Deposit so applied or used to replenish the amount of the Security Deposit held to increase such deposit to the amount initially deposited with Landlord. Within sixty (60) days after
the expiration or termination of this Lease, Landlord shall return the Security Deposit to Tenant, less such amounts as are reasonably necessary, as determined by Landlord, to remedy Tenant’s default(s) hereunder or to otherwise restore the
Premises to a clean and safe condition, reasonable wear and tear excepted. If the cost to restore the Premises exceeds the amount of the Security Deposit, Tenant shall promptly deliver to Landlord any and all of such excess sums. Landlord shall not
be required to keep the Security Deposit separate from other funds, and, unless otherwise required by law, Tenant shall not be entitled to interest on the Security Deposit. In no event or circumstance shall Tenant have the right to any use of the
Security Deposit and, specifically, Tenant may not use the Security Deposit as a credit or to otherwise offset any payments required hereunder. 
  
 5. Condition of Premises; Tenant Improvements. Subject to the provisions of this Sections, Tenant agrees to accept the Premises on the Commencement
Date as then being suitable for Tenant’s intended use and in good operating order, condition and repair in its then existing “AS IS” condition, except as otherwise set forth in Exhibit B hereto, provided, Landlord shall deliver
the Premises with the existing Building operating systems including electrical, mechanical and plumbing systems in good working condition as of the Commencement Date of the Lease and Tenant shall have a review period of thirty (30) days, as
specified below in this Section 5, to confirm such condition. The Tenant Improvements (defined in Exhibit B) shall be installed in accordance with the 
  

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terms, conditions, criteria and provisions set forth in Exhibit B. Except as set forth below in this Section 5, by taking possession of the Premises,
Tenant shall be deemed to have accepted the Premises in good condition and state of repair. Tenant expressly acknowledges and agrees that neither Landlord nor any of Landlord’s agents, representatives or employees has made any representations
as to the suitability, fitness or condition of the Premises for the conduct of Tenant’s business or for any other purpose, including without limitation, any storage incidental thereto. Any Tenant improvements to be constructed hereunder shall
be in compliance with the requirements of the ADA (defined below), and all costs incurred for purposes of compliance therewith shall be a part of and included in the costs of the Tenant improvements. During the thirty (30) day period immediately
following the Commencement Date, Landlord shall use commercially reasonable efforts to cause such repairs to be made to the Building operating systems as are necessary so that such systems are in good working condition. If Tenant fails to timely
deliver to Landlord any such written notice of the aforementioned repairs, within said 30-day period, Landlord shall have no obligation to perform any such work thereafter, except as otherwise specifically provided in Section 11 of this Lease.

  
 6. Additional Rent. It is intended by Landlord and
Tenant that this Lease be a “triple net lease.” The costs and expenses described in this Section 6 and all other sums, charges, costs and expenses specified in this Lease other than Base Rent are to be paid by Tenant to Landlord as
additional rent (collectively, “Additional Rent”). 
  
 6.1 Operating Expenses: 
  
 6.1.1
Definition of Operating Expenses: Tenant shall pay to Landlord Tenant’s Share of all Operating Expenses as Additional Rent. The term “Operating Expenses” as used herein shall mean the total amounts paid or payable by Landlord in
connection with the ownership, management, maintenance, repair and operation of the Premises and the other portions of the Project. The term “Common Areas” shall mean all areas and facilities within the Park exclusive of the Premises and
the other portions of the Park leasable exclusively to other tenants. The Common Areas include, but are not limited to, interior lobbies, mezzanines, parking areas, access and perimeter roads, sidewalks, rail spurs (if any), and landscaped areas.
The Operating Expenses may include, but are not limited to, Landlord’s cost of: (i) repairs to, and maintenance of, the roof membrane, the non-structural portions of the roof and the non-structural elements of the perimeter, exterior walls of
the Building; (ii) maintaining the outside paved area, landscaping and other Common Areas of the Park; (iii) annual insurance premium(s) insuring against personal injury and property damage (including, if Landlord elects, “all risk” or
“special purpose” coverage) and all other insurance, including, but not limited to, earthquake and flood for the Project, rental value insurance against loss of Rent for a period of at least nine (9) months commencing on the date of loss,
and subject to the provisions of Section 25 below, any deductible; (iv) (a) modifications and/or new improvements to any portion of the Project occasioned by any rules, laws or regulations effective subsequent to the Lease Date; (b) reasonably
necessary replacement improvements to any portion of the Project after the Commencement Date; and (c) new improvements to the Project that reduce operating costs or improve life/safety conditions, all of the foregoing as reasonably determined by
Landlord, in its sole but reasonable discretion; provided, the improvements specified above in this Section 6.1.1(iv)(b) and (c) shall not be structural improvements except to the extent 
  

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such improvements were made necessary by the act or omission of Tenant; provided, further if such costs are of a capital nature, then such costs or allocable
portions thereof shall be amortized on a straight-line basis over the estimated useful life of the capital item, as reasonably determined by Landlord, together with reasonable interest (at an interest rate which is the lesser of twelve percent (12%)
per annum or the maximum interest rate permitted by law) on the unamortized balance; (v) the management and administration of any and all portions of the Project, including, without limitation, a property management fee, accounting, auditing,
billing, postage, salaries and benefits for clerical and supervisory employees, whether located on the Project or off-site, payroll taxes and legal and accounting costs and all fees, licenses and permits related to the ownership, operation and
management of the Project, (vi) preventative maintenance and repair contracts including, but not limited to, contracts for elevator systems (if any) and heating, ventilation and air conditioning systems, lifts for disabled persons, if Landlord
elects to so procure; (vii) security and fire protection services for any portion of the Project, if and to the extent, in Landlord’s sole discretion, such services are provided; (viii) the creation and modification of any rail spur or track
agreements, licenses, easements or other similar undertakings with respect to the Project, (ix) supplies, materials, equipment, rental equipment and other similar items used in the operation and/or maintenance of the Project and any reasonable
reserves established for replacement or repair of any Common Area improvements or equipment; (x) any and all levies, charges, fees and/or assessments payable to any applicable owner’s association or similar body; (xi) any barrier removal work
or other required improvements, alterations or work to any portion of the Project generally required under the ADA (defined below) (the “ADA Work”); provided, if such ADA Work is required under the ADA due to Tenant’s particular use
of the Premises or any Alteration (defined below) made to the Premises by or on behalf of Tenant, then the cost of such ADA Work shall be borne solely by Tenant and shall not be included as part of the Operating Expenses; and (xii) the repairs and
maintenance items set forth in Section 11.2 below. Landlord shall have the right from time to time, in its discretion, to include or exclude existing or future buildings in the Park in the calculation of the total rentable square feet of the Park
for purposes of determining Operating Expenses and/or the provision of various services and amenities thereto, including, without limitation, allocation of Operating Expenses in Cost Pools. In such event, Tenant’s Share shall be commensurately
revised to reflect any such increases or decreases in the rentable square footage of the Park. Landlord shall also have the right, from time to time, to equitably allocate and prorate some or all of the Operating Expenses among different tenants
and/or different buildings of the Project and/or on a building-by-building basis (the “Cost Pools”). Such Cost Pools may include without limitation, reallocating among the office space, industrial space and retail space tenants of the
buildings in the Project. 
  
 6.1.2 Operating Expense
Exclusions: Notwithstanding anything to the contrary contained herein, for purposes of this Lease, the term “Operating Expenses” shall not include the following: (i) costs (including permit, license, and inspection fees) incurred in
renovating, improving, decorating, painting, or redecorating vacant space or space for other tenants within the Project; (ii) costs incurred because Landlord or another tenant actually violated the terms and conditions of any lease for premises
within the Project; (iii) legal and auditing fees (other than those fees reasonably incurred in connection with the maintenance and operation of all or any portion the Project), leasing commissions, advertising expenses, and other costs incurred in
connection with the original leasing of the Project or future re-leasing of any portion of the Project; (iv) depreciation of the Building or any other improvements situated within the Project; (v) any 
  

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items for which Landlord is actually reimbursed by insurance or by direct reimbursement by any other tenant of the Project; (vi) costs of repairs or other
work necessitated by fire, windstorm or other casualty (excluding any deductibles) and/or costs of repair or other work necessitated by the exercise of the right of eminent domain to the extent insurance proceeds or a condemnation award, as
applicable, is actually received by Landlord for such purposes; provided, such costs of, repairs or other work shall be paid by the parties in accordance with the provisions of Sections 25 and 26, below; (vii) other than any interest charges for
capital improvements referred to in Section 6.1.1(iv) hereinabove, any interest or payments on any financing for the Building, the Phase or the Project, interest and penalties incurred as a result of Landlord’s late payment of any invoice
(provided that Tenant pays Tenant’s Share of Operating Expenses and Tax Expenses to Landlord when due as set forth herein), and any bad debt loss, rent loss or reserves for same; (viii) costs associated with the investigation and/or remediation
of Hazardous Materials (hereafter defined) present in, on or about any portion of the Project, unless such costs and expenses are the responsibility of Tenant as provided in Section 27 hereof, in which event such costs and expenses shall be paid
solely by Tenant in accordance with the provisions of Section 27 hereof; (ix) Landlord’s cost for the repairs and maintenance items set forth in Section 11.3, below; (x) overhead and profit increment paid to Landlord or to subsidiaries or
affiliates of Landlord for goods and/or services in the Project to the extent the same exceeds the costs of such by unaffiliated third parties on a competitive basis; or any costs included in Operating Expenses representing an amount paid to a
person, firm, corporation or other entity related to Landlord which is in excess of the amount which would have been paid in the absence of such relationship; and (xi) any payments under a ground lease or master lease. 
  
 6.2 Tax Expenses: Tenant shall pay to Landlord Tenant’s Share of
all real property taxes applicable to the Project. Prior to delinquency, Tenant shall pay any and all taxes and assessments levied upon Tenant’s Property (defined below in Section 10) located or installed in or about the Premises by, or on
behalf of Tenant. To the extent any such taxes or assessments are not separately assessed or billed to Tenant, then Tenant shall pay the amount thereof as invoiced by Landlord. Tenant shall also reimburse and pay Landlord, as Additional Rent, within
thirty (30) days after demand therefor, one hundred percent (100%) of (i) any increase in real property taxes attributable to any and all Alterations (defined below in Section 10), Tenant Improvements, fixtures, equipment or other improvements of
any kind whatsoever placed in, on or about the Premises for the benefit of, at the request of, or by Tenant, and (ii) taxes and assessments levied or assessed upon or with respect to the possession, operation, use or occupancy by Tenant of the
Premises or any other portion of the Project. The term “Tax Expenses” shall mean and include, without limitation, any form of tax and assessment (general, special, supplemental, ordinary or extraordinary), commercial rental tax, payments
under any improvement bond or bonds, license fees, license tax, business license fee, rental tax, transaction tax or levy imposed by any authority having the direct or indirect power of tax (including any city, county, state or federal government,
or any school, agricultural, lighting, drainage or other improvement district thereof) as against any legal or equitable interest of Landlord in the Premises or any other portion of the Project or any other tax, fee, or excise, however described,
including, but not limited to, any value added tax, or any tax imposed in substitution (partially or totally) of any tax previously included within the definition of real property taxes, or any additional tax the nature of which was previously
included within the definition of real property taxes. The term “Tax Expenses” shall not include any franchise, estate, inheritance, net income, or 
  

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excess profits tax imposed upon Landlord, or a penalty fee imposed as a result of Landlord’s failure to pay Tax Expenses when due. 
  
 6.3 Payment of Expenses: Landlord shall estimate Tenant’s Share
of the Operating Expenses and Tax Expenses for the calendar year in which the Lease commences. Commencing on the Commencement Date, one-twelfth (1/12th) of this estimated amount shall be paid by Tenant to Landlord, as Additional Rent, and thereafter
on the first (1st) day of each month throughout the remaining months of such calendar year. Thereafter, Landlord may estimate such expenses for each calendar year during the Term of this Lease and Tenant shall pay one-twelfth (1/12th) of such
estimated amount as Additional Rent hereunder on the first (1st) day of each month during such calendar year and for each ensuing calendar year throughout the Term of this Lease. Tenant’s obligation to pay Tenant’s Share of Operating
Expenses and Tax Expenses shall survive the expiration or earlier termination of this Lease. 
  
 6.4 Annual Reconciliation: By June 30th of each calendar year, or as soon thereafter as reasonably possible, Landlord shall furnish Tenant with an accounting of actual and accrued Operating Expenses and Tax
Expenses. Within thirty (30) days of Landlord’s delivery of such accounting, Tenant shall pay to Landlord the amount of any underpayment. Notwithstanding the foregoing, failure by Landlord to give such accounting by such date shall not
constitute a waiver by Landlord of its right to collect any underpayment by Tenant at any time. Landlord shall credit the amount of any overpayment by Tenant toward the next estimated monthly installment(s) falling due, or where the Term of the
Lease has expired, refund the amount of overpayment to Tenant within thirty (30) days after determination by Landlord that such overpayment was made. If the Term of the Lease expires prior to the annual reconciliation of expenses Landlord shall have
the right to reasonably estimate Tenant’s Share of such expenses, and if Landlord determines that there has been an underpayment, Landlord may deduct such underpayment from Tenant’s Security Deposit. Failure by Landlord to accurately
estimate Tenant’s Share of such expenses or to otherwise perform such reconciliation of expenses shall not constitute a waiver of Landlord’s right to collect any of Tenant’s underpayment at any time during the Term of the Lease or at
any time after the expiration or earlier termination of this Lease. 
  
 6.5 Audit: After delivery to Landlord of at least thirty (30) days prior written notice, Tenant, at its sole cost and expense through any accountant designated by it shall have the right to examine and/or audit the books and records
evidencing such costs and expenses for the previous one (1) calendar year (and Landlord shall keep books and records for a particular calendar year for at least a period of one (1) year following the expiration of such particular calendar year),
during Landlord’s reasonable business hours but not more frequently than once during any calendar year. Any such accounting firm designated by Tenant may not be compensated on a contingency fee basis. The results of any such audit (and any
negotiations between the parties related thereto) shall be maintained strictly confidential by Tenant and its accounting firm and shall not be disclosed, published or otherwise disseminated to any other party other than to Landlord and its
authorized agents. Landlord and Tenant each shall use reasonable efforts to cooperate in such negotiations and to promptly resolve any discrepancies between Landlord and Tenant in the accounting of such costs and expenses. If through such audit it
is determined that there is a discrepancy of more than five percent (5%) in the total of actual operating Expenses, Tax Expenses, and Administrative Expenses, 
  

 6 

 
then Landlord shall reimburse Tenant for the reasonable accounting costs and expenses incurred by Tenant in performing such audit, including Tenants in-house
or outside auditors or accountants, such costs and expenses not to exceed $2,000.00. However, if through such audit it is determined that there is a discrepancy of five percent (5%) or less, then Tenant shall reimburse Landlord for the reasonable
accounting costs and expenses associated with Landlord’s in-house auditors or accounting personnel as well as those reasonable costs and expenses incurred by Landlord for any outside accounting firms or auditors in connection with such audit,
such costs and expenses not to exceed $2,000.00. Landlord and Tenant shall pay or reimburse, within thirty (30) days following completion of such audit, the other for any underpayment or overpayment of Operating Expenses, Tax Expenses and
Administrative Expenses. Notwithstanding anything to the contrary herein, Tenant shall be obligated to reimburse Landlord for only those Operating Expenses, Tax Expenses or Administrative Expenses attributable to the period which falls within the
Term of this Lease. 
  
 7. Utilities and Services. Tenant
shall pay the cost of all (i) water, sewer use, sewer discharge fees and sewer connection fees, gas, electricity, telephone, telecommunications, cabling and other utilities billed or metered separately to the Premises and (ii) refuse pickup and
janitorial service to the Premises. Utility Expenses, Common Area Utility Costs and all other sums and charges set forth in this Section 7 are considered part of Additional Rent. 
  
 7.1 Utility Expenses: For any such utility fees, use charges, or similar services that are not billed or metered
separately to Tenant, including without limitation, water and sewer charges, and garbage and waste disposal (collectively, “Utility Expenses”), Tenant shall pay to Landlord Tenant’s Share of Utility Expenses. If Landlord reasonably
determines that Tenant’s Share of Utility Expenses is not commensurate with Tenant’s use of such services, Tenant shall pay to Landlord the amount which is attributable to Tenant’s use of the utilities or similar services, as
reasonably estimated and determined by Landlord, based upon factors such as size of the Premises and intensity of use of such utilities by Tenant such that Tenant shall pay the portion of such charges reasonably consistent with Tenant’s use of
such utilities and similar services. If Tenant disputes any such estimate or determination, then Tenant shall either pay the estimated amount or cause the Premises to be separately metered at Tenant’s sole expense. Tenant shall also pay
Tenant’s Share of any assessments, charges, and fees included within any tax bill for the Lot on which the Premises are situated, including without limitation, entitlement fees, allocation unit fees, sewer use fees, and any other similar fees
or charges. 
  
 7.2 Common Area Utility Costs: Tenant shall
pay to Landlord Tenant’s Share of any Common Area utility costs, fees, charges and expenses (collectively, “Common Area Utility Costs”). Tenant shall pay to Landlord one-twelfth (1/12th) of the estimated amount of Tenant’s Share
of the Common Area Utility Costs on the Commencement Date and thereafter on the first (1st) day of each month throughout the balance of the Term of this Lease. Any reconciliation thereof shall be substantially in the same manner as set forth in
Section 6.4 above. 
  
 7.3 Miscellaneous: Tenant
acknowledges that the Premises may become subject to the rationing of utility services or restrictions on utility use as required by a public utility company, governmental agency or other similar entity having jurisdiction thereof. Tenant agrees
that its tenancy and occupancy hereunder shall be subject to such rationing restrictions as may be 
  

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imposed upon Landlord, Tenant, the Premises, or other portions of the Project, and Tenant shall in no event be excused or relieved from any covenant or
obligation to be kept or performed by Tenant by reason of any such rationing or restrictions. If permitted by applicable Laws, Landlord shall have the right at any time and from time to time during the Term of this Lease to either contract for
service from a different company or companies (each such company referred to as an “Alternate Service Provider”) other than the company or companies presently providing electricity service for the Project (the “Electric Service
Provider”) or continue to contract for service from the Electric Service Provider, at Landlord’s sole discretion. Tenant agrees to cooperate with Landlord, the Electric Service Provider, and any Alternate Service Provider at all times and,
as reasonably necessary, shall allow Landlord, the Electric Service Provider, and any Alternate Service Provider reasonable access to the Building’s electric lines, feeders, risers, wiring, and any other machinery within the Premises.

  
 8. Late Charges. Any and all sums or charges set forth
in this Section 8 are considered part of Additional Rent. Tenant acknowledges that late payment (the second day of each month or any time thereafter) by Tenant to Landlord of Rent and all other sums due hereunder, will cause Landlord to incur costs
not contemplated by this Lease. Such costs may include, without limitation, processing and accounting charges, and late charges that may be imposed on Landlord by the terms of any note secured by any encumbrance against the Premises, and late
charges and penalties due to the late payment of real property taxes on the Premises. Therefore, if any installment of Rent or any other sum payable by Tenant is not received by Landlord when due, Tenant shall promptly pay to Landlord a late charge,
as liquidated damages, in an amount equal to seven percent (7%) of such delinquent amount plus interest on such delinquent amount at the rate equal to the prime rate plus three percent (3%) for every month or portion thereof that such sums remain
unpaid. Notwithstanding the foregoing, Landlord waives the late charge for the first (1st) instance during each calendar year of the Term of this Lease in which Tenant fails to timely pay Rent. If Tenant delivers to Landlord a check for which there
are not sufficient funds, Landlord may require Tenant to replace such check with a cashier’s check for the amount of such check and all other charges payable hereunder. The parties agree that this late charge and the other charges referenced
above represent a fair and reasonable estimate of the costs that Landlord will incur by reason of such late payment by Tenant, excluding attorneys’ fees and costs. Acceptance of any late charge or other charges shall not constitute a waiver by
Landlord of Tenant’s default with respect to the delinquent amount, nor prevent Landlord from exercising any of the other rights and remedies available to Landlord for any other breach of Tenant under this Lease. 
  
 9. Use of Premises 
  
 9.1 Compliance with Laws, Recorded Matters, and Rules and
Regulations: The Premises are to be used solely for the purposes and uses specified in the Basic Lease Information and for no other uses or purposes without Landlord’s prior written consent. Landlord’s consent shall not be unreasonably
withheld or delayed so long as the proposed use (i) does not involve the use of Hazardous Materials other than as expressly permitted under the provisions of Section 27 below, (ii) does not require any additional parking spaces, and (iii) is
reasonably compatible and consistent with the other uses then being made in the Project and in other similar types of buildings in the vicinity of the Project, as reasonably determined by Landlord. The use of 
  

 8 

 
the Premises by Tenant and its employees, representatives, agents, invitees, licensees, subtenants, customers or contractors (collectively,
“Tenant’s Representatives”) shall be subject to, and at all times in compliance with, (a) any and all applicable laws, rules, codes, ordinances, statutes, orders and regulations as same exist from time to time throughout the Term of
this Lease (collectively, the “Laws”), including without limitation, the requirements of the Americans with Disabilities Act, a federal law codified at 42 U.S.C. 12101 et seq., including, but not limited to Title III thereof, all
regulations and guidelines related thereto and all requirements of Title 24 of the State of California (collectively, the “ADA”), (b) any and all documents, instruments, licenses, restrictions, easements or similar instruments, conveyances
or encumbrances which are at any time, and from time to time, required to be made by or given by Landlord in any manner relating to the initial development of the Project and/or the construction from time to time of any additional buildings or other
improvements in the Project, including Without limitation any Tenant improvements (collectively, the “Development Documents”), (c) any and all documents, easements, covenants, conditions and restrictions, and similar instruments, together
with any and all amendments and supplements thereto made from time to time each of which has been or hereafter is recorded in any official or public records with respect to the Premises or any other portion of the Project (collectively, the
“Recorded Matters”), provided, if any of the Recorded Matters which are subsequently recorded after the Lease Date materially and adversely affect Tenant’s rights and obligations under this Lease (excluding any liens related to any
mortgage, deed of trust or similar type of security interest, and any easements, liens and other recorded matters required or imposed in connection with the construction of any improvements to be made to the Premises), then Landlord shall notify
Tenant, in writing, of all such Recorded Matters and (d) any and all rules and regulations set forth in Exhibit C hereto, any other reasonable and non-discriminatory rules and regulations promulgated by Landlord now or hereafter enacted
relating to parking and the operation of the Premises and/or any other part of the Project and any and all rules, restrictions and/or regulations imposed by any applicable owners association or similar entity or body (collectively, the “Rules
and Regulations”). Landlord reserves to itself the right, from time to time, to grant, without the consent of Tenant, such easements, rights and dedications that Landlord deems reasonably necessary, and to cause the recordation of parcel or
subdivision maps and/or restrictions, so long as such easements, rights, dedications, maps and restrictions, as applicable, do not materially and adversely interfere with Tenant’s operations in the Premises. Tenant agrees to sign any documents
reasonably requested by Landlord to effectuate any such easements, rights, dedications, maps or restrictions. Tenant agrees to, and does hereby, assume full and complete responsibility to ensure that the Premises, including without limitation, the
Tenant improvements, are in compliance with all applicable Laws throughout the Term of this Lease. Additionally, Tenant shall be solely responsible for the payment of all costs, fees and expenses associated with any modifications, improvements or
other Alterations to the Premises and/or any other portion of the Project occasioned by the enactment of, or changes to, any Laws arising from Tenant’s particular use of the Premises or Alterations or other improvements made to the Premises
regardless of when such Laws became effective. Tenant shall not initiate, submit an application for, or otherwise request, any land use approvals or entitlements with respect to the Premises or any other portion of the Project, including without
limitation, any variance, conditional use permit or rezoning, without first obtaining Landlord’s prior written consent thereto, which consent may be given or withheld in Landlord’s sole discretion. 
  

 9 

 9.2 Prohibition on Use: Tenant shall not use the Premises or permit anything to be done in or
about the Premises nor keep or bring anything therein which will in any way increase the existing rate of or affect any policy of fire or other insurance upon the Building or any of its contents, or cause a cancellation of any insurance policy. No
auctions may be held or otherwise conducted in, on or about any portion of the Premises or the Project without Landlord’s prior written consent thereto. Tenant shall not do or permit anything to be done in or about the Premises which will in
any way obstruct or interfere with the rights of Landlord or other tenants or occupants of any portion of the Project. The Premises shall not be used for any unlawful purpose. Tenant shall not cause, maintain or permit any private or public nuisance
in, on or about any portion of the Premises or the Project, including, but not limited to, any offensive odors, noises, fumes or vibrations. Tenant shall not damage or deface or otherwise commit or suffer to be committed any waste in, upon or about
the Premises or any other portion of the Project. Tenant shall not place or store, nor permit any other person or entity to place or store, any property, equipment, materials, supplies, personal property or any other items or goods outside of the
Premises for any period of time. Except to the extent required by the ADA or other Laws, Tenant shall not permit any animals, including, but not limited to, any household pets, to be brought or kept in or about the Premises. Tenant shall not install
any radio or television antenna, satellite dish, microwave, loudspeaker or other device on the roof or exterior walls of the Building or any other portion of the Project. Tenant shall not interfere with radio, telecommunication, or television
broadcasting or reception from or in the Building or elsewhere. Tenant shall place no loads upon the floors, walls, or ceilings in excess of the maximum designed load permitted by the applicable Uniform Building Code or which may damage the Building
or outside areas within the Project. Tenant shall not place any harmful liquids in the drainage systems or dump or store waste materials, refuse or other such materials, or allow such materials to remain outside the Building area, except for any
non-hazardous or non-harmful materials which may be stored in refuse dumpsters. 
  
 10. Alterations; and Surrender of Premises 
  
 10.1 Alterations: Tenant shall be permitted to make in accordance with all Laws, at its sole cost and expense and after receipt of all necessary permits and approvals, non-structural alterations and additions
to the Premises without obtaining Landlord’s prior written consent; provided the cost of same does not exceed $25,000 cumulatively during each calendar year (the “Permitted Improvements”). Tenant however, shall first notify Landlord
of such alterations or additions so that Landlord may post a Notice of Non-Responsibility on the Premises. Within fifteen (15) business days of Landlord’s receipt of Tenant’s written notice will any item comprising the Permitted
Improvements, Landlord shall notify Tenant in writing, whether or not Landlord will require Tenant to remove such item from the Premises upon the expiration or earlier termination of this Lease. Except for the Permitted Improvements, Tenant shall
not install any signs, fixtures, improvements, nor make or permit any other alterations or additions (individually, an “Alteration”, and collectively, the “Alterations”) to the Premises without the prior written consent of
Landlord, which consent shall not be unreasonably withheld so long as any such Alteration does not affect the Building systems or the structural integrity or structural components of the Premises or the Building. If any such Alteration is expressly
permitted by Landlord, Tenant shall deliver at least ten (10) days prior notice to Landlord, from the date Tenant intends to commence construction, sufficient to enable Landlord to post a Notice of Non-Responsibility. In all events, Tenant shall
obtain all 
  

 10 

 
permits or other governmental approvals prior to commencing any of such work and deliver a copy of same to Landlord. All Alterations shall be at
Tenant’s sole cost and expense in accordance with plans and specifications which have been previously submitted to and approved in writing by Landlord, and shall be installed by a licensed, insured (and bonded, at Landlord’s option)
contractor (reasonably approved by Landlord) in compliance with all applicable Laws (including, but not limited to, the ADA), Development Documents, Recorded Matters, and Rules and Regulations. In addition, all work with respect to any Alterations
must be done in a good and workmanlike manner. Landlord’s approval of any plans, specifications or working drawings for Tenant’s Alterations shall not create nor impose any responsibility or liability on the part of Landlord for their
completeness, design sufficiency, or compliance with any laws, ordinances, rules and regulations of governmental agencies or authorities. In performing the work of any such Alterations, Tenant shall have the work performed in such a manner as not to
obstruct access to the Project, or the Common Areas for any other tenant of the Project, and as not to obstruct the business of Landlord or other tenants in the Project, or interfere with the labor force working in the Project. As Additional Rent
hereunder, Tenant shall reimburse Landlord, within thirty (30) days after receipt of written demand, for actual legal, engineering, architectural, planning and other reasonable expenses incurred by Landlord in connection with Tenant’s
Alterations, plus Tenant shall pay to Landlord a fee equal to five percent (5%) of the total cost of the Alterations (provided, with respect to the Tenant Improvements described in Exhibit E to this Lease, Tenant shall not be obligated to pay
the fee described in this Section 10.1 but shall be obligated to pay the CM Fee (as defined in Exhibit B)). If Tenant makes any Alterations, Tenant agrees to carry “Builder’s All Risk” insurance, in an amount approved by
Landlord and such other insurance as Landlord may require, it being understood and agreed that all of such Alterations shall be insured by Tenant in accordance with Section 12 of this Lease immediately upon completion thereof. Tenant shall keep the
Premises and the property on which the Premises are situated free from any liens arising out of any work performed, materials furnished or obligations incurred by or on behalf of Tenant. Tenant shall, prior to construction of any and all
Alterations, cause its contractor(s) and/or major subcontractor(s) to provide insurance as reasonably required by Landlord, and Tenant shall provide such assurances to Landlord, including without limitation, waivers of lien, surety company
performance bonds as Landlord shall require to assure payment of the costs thereof to protect Landlord and the Project from and against any loss from any mechanic’s, materialmen’s or other liens. 
  
 10.2 Surrender of Premises: At the expiration of the Term or earlier
termination of this Lease, Tenant shall surrender the Premises to Landlord (a) in good condition and repair (damage by acts of God, casualty, and normal wear and tear excepted), but with all interior walls cleaned, any carpets cleaned, all floors
cleaned and waxed, all non-working light bulbs and ballasts replaced and all roll-up doors and plumbing fixtures in good condition and working order, and (b) in accordance with the provisions of Section 27 hereof. Normal wear and tear shall not
include any damage or deterioration that would have been prevented by proper maintenance by Tenant, or Tenant otherwise performing all of its obligations under this Lease. On or before the expiration or earlier termination of this Lease, (i) Tenant
shall remove all of Tenant’s Property (as hereinafter defined) and Tenant’s signage from the Premises and the other portions of the Project and (ii) to the extent Landlord has advised Tenant on or about the time that the Tenant
Improvements or Alterations were constructed and installed in the Premises that Tenant is to remove all or portions of the items comprising the Tenant Improvements or the Alterations (the “Removable TIs”), Tenant 
  

 11 

 
shall remove the Removable TIs. Tenant shall repair any damage caused by such removal of the Tenant’s Property and the Removable TIs. For purposes
hereof, the term “Tenant’s Property” shall mean and refer to all equipment, computer wiring and cabling, trade fixtures, furnishings, inventories, goods and personal property of Tenant. Any of Tenant’s Property not so removed by
Tenant as required herein shall be deemed abandoned and may be stored, removed, and disposed of by Landlord at Tenant’s expense, and Tenant waives all claims against Landlord for any damages resulting from Landlord’s retention and
disposition of such property; provided, however, Tenant shall remain liable to Landlord for all costs incurred in storing and disposing of such abandoned property of Tenant. All Tenant Improvements and Alterations except those which Landlord
requires Tenant to remove shall remain in the Premises as the property of Landlord. If the Premises are not surrendered at the expiration of the Term or earlier termination of this Lease, and in accordance with the provisions of this Section 10 and
Section 27 below, Tenant shall continue to be responsible for the payment of Rent (as the same may be increased pursuant to Section 20 below) until the Premises are so surrendered in accordance with said provisions. Tenant shall indemnify, defend
and hold the Indemnitees (hereafter defined) harmless from and against any and all damages, expenses, costs, losses or liabilities arising from any delay by Tenant in so surrendering the Premises including, without limitation, any damages, expenses,
costs, losses or liabilities arising from any claim against Landlord made by any succeeding tenant or prospective tenant founded on or resulting from such delay and losses and damages suffered by Landlord due to lost opportunities to lease any
portion of the Premises to any such succeeding tenant or prospective tenant, together with, in each case, reasonable attorneys’ fees and costs. 
  
 11. Repairs and Maintenance 
  
 11.1 Tenant’s Repairs and Maintenance Obligations: Except for those portions of the Building to be maintained by Landlord, as provided in
Sections 11.2 and 11.3 below, Tenant shall, at its sole cost and expense, keep and maintain all parts of the Premises and such portions of the Building and improvements as are within the exclusive control of Tenant in good, clean and safe condition
and repair, promptly making all necessary repairs and replacements, whether ordinary or extraordinary, with materials and workmanship of the same character, kind and quality as the original thereof, all of the foregoing in accordance with the
applicable provisions of Section 10 hereof, and to the reasonable satisfaction of Landlord including, but not limited to, repairing any damage caused by Tenant or any of Tenant’s Representatives and replacing any property so damaged by Tenant
or any of Tenant’s Representatives. Without limiting the generality of the foregoing, Tenant shall be solely responsible for promptly maintaining, repairing and replacing, to the extent exclusively serving the Premises (a) all mechanical
systems, heating, ventilation and air conditioning systems serving the Premises, unless maintained by Landlord, (b) all plumbing work and fixtures, (c) electrical wiring systems, fixtures and equipment exclusively serving the Premises, (d) all
interior lighting (including, without limitation, light bulbs and/or ballasts) (e) all glass, windows, window frames, window casements, skylights, interior and exterior doors, door frames and door closers, (f) all roll-up doors, ramps and dock
equipment, including without limitation, dock bumpers, dock plates, dock seals, dock levelers and dock lights, (g) all tenant signage, (h) lifts for disabled persons serving the Premises, (i) sprinkler systems, fire protection systems and security
systems, except to the extent maintained by Landlord, and (j) all partitions, fixtures, equipment, interior painting, interior walls and floors, and floor coverings of the Premises and every part thereof (including, 
  

 12 

 
without limitation, any demising walls contiguous to any portion of the Premises). Any such work shall be performed by licensed, insured and bonded
contractors and subcontractors reasonably approved by landlord. Additionally, Tenant shall be solely responsible for performance of the regular removal of trash and debris. Tenant shall have no right of access to or right to install any device on
the roof of the Building nor make any penetrations of the roof of the Building without the express prior written consent of Landlord. 
  
 11.2 Maintenance by Landlord: Subject to the provisions of Section 11.1, and further subject to Tenant’s obligation under Section 6 to
reimburse Landlord, in the form of Additional Rent, for Tenant’s Share of the cost and expense of the following described items, Landlord agrees to repair and maintain the following items: fire protection services; the roof and roof coverings
(provided that Tenant installs no additional air conditioning or other equipment on the roof that damages the roof coverings, in which event Tenant shall pay all costs relating to the presence of such additional equipment); the plumbing and
mechanical systems serving the Building, excluding the plumbing, mechanical and electrical systems exclusively serving the Premises, any rail spur and rail crossing; exterior painting of the Building; and the parking areas, pavement, landscaping,
sprinkler systems, sidewalks, driveways, curbs, and lighting systems in the Common Areas. Notwithstanding anything in this Section 11 to the contrary, Landlord shall have the right to either repair or to require Tenant to repair any damage to any
portion of the Premises and any other portion of the Project caused by or created due to any act, omission, negligence or willful misconduct of Tenant or any of Tenant Representatives and to restore the Premises and the other affected portions of
the Project, as applicable, to the condition existing prior to the occurrence of such damage. If Landlord elects to perform such repair and restoration work, Tenant shall reimburse Landlord upon demand for all reasonable costs and expenses incurred
by landlord in connection therewith. Tenant shall promptly report, in writing, to Landlord any defective condition known to it which Landlord is required to repair. 
  
 11.3 Landlord’s Repairs and Maintenance Obligations: Subject to the provisions of Sections 11.1, 25 and 26, and
except for repairs rendered necessary by the intentional or negligent acts or omissions of Tenant or any of Tenant’s Representatives, Landlord agrees, at Landlord’s sole cost and expense (which shall not be subject to reimbursement by
Tenant as an Operating Expense or otherwise), to (a) keep in good repair the structural portions of the floors, foundations and exterior perimeter walls of the Building (exclusive of glass, and exterior doors), and (b) replace the structural
portions of the roof of the Building (excluding the roof membrane). 
  
 11.4 Tenant’s Failure to Perform Repairs and Maintenance Obligations: If Tenant refuses or neglects to repair and maintain the Premises and the other areas properly as required herein and to the reasonable satisfaction of
Landlord, Landlord may, but without obligation to do so, following five (5) business days written notice (except in the event of an emergency, in which case no notice shall be required), make such repairs or maintenance without Landlord having any
liability to Tenant for any loss or damage that may accrue to Tenant’s Property or to Tenant’s business by reason thereof, except to the extent any damage is caused by the willful misconduct or gross negligence of Landlord or its
authorized agents and representatives. If Landlord makes such repairs or maintenance, upon completion thereof Tenant shall pay to Landlord, as Additional Rent, Landlord’s reasonable costs and expenses incurred therefor. The obligations of
Tenant hereunder 
  

 13 

 
shall survive the expiration of the Term of this Lease or the earlier termination thereof. Tenant hereby waives any right to repair at the expense of
Landlord under any applicable Laws now or hereafter in effect with respect to the Premises. 
  
 12. Insurance 
  
 12.1
Types of Insurance: Tenant shall maintain in full force and effect at all times during the Term of this Lease, at Tenant’s sole cost and expense, for the protection of Tenant and Landlord, as their interests may appear, policies of
insurance issued by a carrier or carriers reasonably acceptable to Landlord and its lender (which afford the following coverages: (i) worker’s compensation and employer’s liability, as required by law; (ii) commercial general liability
insurance (occurrence form) providing coverage against any and all claims for bodily injury and property damage occurring in, on or about the Premises arising out of Tenant’s and Tenant’s Representatives’ use or occupancy of the
Premises. Such insurance shall include coverage for blanket contractual liability, fire damage, premises, personal injury, completed operations and products liability. Such insurance shall have a combined single limit of not less than One Million
Dollars ($1,000,000) per occurrence with a Two Million Dollar ($2,000,000) aggregate limit and excess/umbrella insurance in the amount of Three Million Dollars ($3,000,000). If Tenant has other locations which it owns or leases, the policy shall
include an aggregate limit per location endorsement; (iii) comprehensive automobile liability insurance with a combined single limit of at least $1,000,000 per occurrence for claims arising out of any company owned automobiles; (iv) ”all
risk” or “special purpose” property insurance, including without limitation, sprinkler leakage, covering damage to or loss of any of Tenant’s Property and the Tenant Improvements located in, on or about the Premises, and in
addition, coverage for flood, earthquake, and business interruption of Tenant, together with, if the property of any of Tenant’s invitees, vendors or customers is to be kept in the Premises, warehouser’s legal liability or bailee customers
insurance for the full replacement cost of the property belonging to such parties and located in the Premises. Such insurance shall be written on a replacement cost basis (without deduction for depreciation) in an amount equal to one hundred percent
(100%) of the full replacement value of the aggregate of the items referred to in this clause (iv); and (v) such other insurance or higher limits of liability as is then customarily required for similar types of buildings within the general vicinity
of the Project or as may be reasonably required by any of Landlord’s lenders. 
  
 12.2 Insurance Policies: Insurance required to be maintained by Tenant shall be written by companies (i) licensed to do business in the State of California, (ii) domiciled in the United States of America, and
(iii) having a “General Policyholders Rating” of at least B+:VIII (or such higher rating as may be required by a lender having a lien on the Premises) as set forth in the most current issue of “A.M. Best’s Rating Guides.”
Any deductible amounts under any of the insurance policies required hereunder shall not exceed Twenty Five Thousand Dollars ($25,000). Tenant shall deliver to Landlord certificates of insurance and true and complete copies of any and all
endorsements required herein for all insurance required to be maintained by Tenant hereunder at the time of execution of this Lease by Tenant. Tenant shall, at least fifteen (15) days prior to expiration of each policy, furnish Landlord with
certificates of renewal or “binders” thereof. Each certificate shall expressly provide that such policies shall not be cancelable or otherwise subject to material modification except after thirty (30) days prior written notice to the
parties named as additional 
  

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insureds as required in this Lease (except for cancellation for nonpayment of premium, in which event cancellation shall not take effect until at least ten
(10) days’ notice has been given to Landlord). Tenant shall have the right to provide insurance coverage which it is obligated to carry pursuant to the terms of this Lease under a blanket insurance policy, provided such blanket policy expressly
affords coverage for the Premises and for Landlord as required by this Lease. 
  
 12.3 Additional Insureds and Coverage: Each of Landlord, Landlord’s property management company or agent, and Landlord’s lender(s) having a lien against the Premises or any other portion of the
Project shall be named as additional insureds or loss payees (as applicable) under all of the policies required in Section 12.1(ii) and, with respect to the Tenant Improvements, in Section 12.1(iv) hereof. Additionally, all of such policies shall
provide for severability of interest. All insurance to be maintained by Tenant shall, except for workers’ compensation and employer’s liability insurance, be primary, without right of contribution from insurance maintained by Landlord. Any
umbrella/excess liability policy (which shall be in “following form”) shall provide that if the underlying aggregate is exhausted, the excess coverage will drop down as primary insurance. The limits of insurance maintained by Tenant shall
not limit Tenant’s liability under this Lease. It is the parties’ intention that the insurance to be procured and maintained by Tenant as required herein shall provide coverage for any and all damage or injury arising from or related to
Tenant’s operations of its business and/or Tenant’s or Tenant’s Representatives’ use of the Premises and any of the areas within the Project. Notwithstanding anything to the contrary contained herein, to the extent
Landlord’s cost of maintaining insurance with respect to the Building and/or any other buildings within the Project is increased as a result of Tenant’s acts, omissions, Alterations, improvements, use or occupancy of the Premises, Tenant
shall pay one hundred percent (100%) of, and for, each such increase as Additional Rent. 
  
 12.4 Failure of Tenant to Purchase and Maintain Insurance: If Tenant fails to obtain and maintain the insurance required herein throughout the Term of this Lease, Landlord may, but without obligation to do so,
following five (5) business days prior notice, purchase the necessary insurance and pay the premiums therefor. If Landlord so elects to purchase such insurance, Tenant shall promptly pay to Landlord as Additional Rent, the actual out of pocket
amount so paid by Landlord, upon Landlord’s demand therefor. In addition, Landlord may recover from Tenant and Tenant agrees to pay, as Additional Rent, any and all losses, damages, expenses and costs which Landlord may sustain or incur by
reason of Tenant’s failure to obtain and maintain such insurance. 
  
 12.5 Waiver of Subrogation: Landlord and Tenant hereby mutually waive their respective rights of recovery against each other for any loss of, or damage to, either parties’ property to the extent that such loss or damage is
insured by an insurance policy required to be in effect at the time of such loss or damage. Each party shall obtain any special endorsements, if required by its insurer, whereby the insurer waives its rights of subrogation against the other party.
This provision is intended to waive fully, and for the benefit of the parties hereto, any rights and/or claims which might give rise to a right of subrogation in favor of any insurance carrier. 
  
 12.6 Landlord’s Insurance: Landlord shall maintain in full force
and effect during the Term of this Lease, subject to reimbursement as provided in Section 6, policies of insurance which afford such coverages as are commercially reasonable and as is consistent with other 
  

 15 

 
properties in Landlord’s portfolio. Notwithstanding the foregoing, Landlord shall obtain and keep in force during the Term of this Lease, as an item of
Operating Expenses, a policy or policies in the name of Landlord, with loss payable to Landlord and to the holders of any mortgages, deeds of trust or ground leases on the Premises (“Lender(s)”), insuring loss or damage to the Building,
including all improvements, fixtures (other than trade fixtures) and permanent additions. However, all alterations, additions and improvements made to the Premises by Tenant (including the Tenant improvements) shall be insured by Tenant rather than
by Landlord. The amount of such insurance procured by Landlord shall be equal to at least eighty percent (80%) of the full replacement cost of the Building, including all improvements and permanent additions as the same shall exist from time to
time, or the amount required by Lenders. At Landlord’s option, such policy or policies shall insure against all risks of direct physical loss or damage (including, without limitation, the perils of flood and earthquake), including coverage for
any additional costs resulting from debris removal and reasonable amounts of coverage for the enforcement of any ordinance or law regulating the reconstruction or replacement of any undamaged sections of the Building required to be demolished or
removed by reason of the enforcement of any building, zoning, safety or land use laws as the result of a covered cause of loss. If any such insurance coverage procured by Landlord has a deductible clause, the deductible shall not exceed commercially
reasonable amounts, and in the event of any casualty, the amount of such deductible shall be an item of Operating Expenses as so limited. 
  
 13. Limitation of Liability and Indemnity. Except to the extent of damage resulting from the gross negligence or willful misconduct of Landlord or
its authorized representatives, Tenant agrees to protect, defend (with counsel reasonably acceptable to Landlord) and hold Landlord and Landlord’s lenders, property management company (if other than Landlord) agents, directors, officers,
employees, representatives, contractors, successors and assigns and each of their respective partners, members, directors, heirs, employees, representatives, agents, contractors, heirs, successors and assigns (collectively, the
“Indemnitees”) harmless and indemnify the Indemnitees from and against all liabilities, damages, demands, penalties, costs, claims, losses, judgments, charges and expenses (including reasonable attorneys’ fees, costs of court and
expenses necessary in the prosecution or defense of any litigation including the enforcement of this provision) (collectively, “Claims”) arising from or in any way related to, directly or indirectly, (i) Tenant’s or Tenant’s
Representatives’ use of the Premises and other portions of the Project, (ii) the conduct of Tenant’s business, (iii) from any activity, work or thing done, permitted or suffered by Tenant in or about the Premises or in any way connected
with the Premises, the Alterations or with the Tenant’s Property therein, including, but not limited to, any liability for injury to person or property of Tenant, Tenant’s Representatives or third party persons, and/or (iv) Tenant’s
failure to perform any covenant or obligation of Tenant under this Lease. Tenant agrees that the obligations of Tenant herein shall survive the expiration or earlier termination of this Lease. 
  
 Except to the extent of damage resulting from the gross negligence or willful
misconduct of Landlord or its authorized representatives, to the fullest extent permitted by law, Tenant agrees that neither Landlord nor any of the Indemnitees shall at any time or to any extent whatsoever be liable, responsible or in any way
accountable for any loss, liability, injury, death or damage to persons or property which at any time may be suffered or sustained by Tenant or by any person(s) whomsoever who may at any time be using, occupying or visiting the Premises or any other
portion of the Project, 
  

 16 

 
including, but not limited to, any acts, errors or omissions of any other tenants or occupants of the Project. Tenant shall not, in any event or
circumstance, be permitted to offset or otherwise credit against any payments of Rent required herein for matters for which Landlord may be liable hereunder. Landlord and its authorized representatives shall not be liable for any interference with
light or air, or for any latent defect in the Premises or the Building. 
  
 14. Assignment and Subleasing 
  
 14.1
Prohibition: Tenant shall not, without the prior written consent of Landlord (which consent, subject to the terms of this Section 14, shall not be unreasonably withheld, conditioned or delayed), assign, mortgage, hypothecate, encumber, grant any
license or concession, pledge or otherwise transfer this Lease or any interest herein, permit any assignment or other such transfer of this Lease or any interest hereunder by operation of law, sublet the Premises or any part thereof, or permit the
use of the Premises by any persons other than Tenant and Tenant’s Representatives (all of the foregoing are sometimes referred to collectively as “Transfers” and any person to whom any Transfer is made or sought to be made is
sometimes referred to as a “Transferee”). No consent to any Transfer shall constitute a waiver of the provisions of this Section 14, and all subsequent Transfers may be made only with the prior written consent of Landlord, which consent
shall not be unreasonably withheld, conditioned or delayed but which consent shall be subject to the provisions of this Section 14. 
  
 14.2 Request for Consent: If Tenant seeks to make a Transfer, Tenant shall notify Landlord, in writing, and deliver to Landlord at least thirty
(30) days (but not more than one hundred eighty (180) days) prior to the proposed commencement date of the Transfer (the “Proposed Effective Date”) the following information and documents (the “Tenant’s Notice”): (i) a
description of the portion of the Premises to be transferred (the “Subject Space”); (ii) all of the terms of the proposed Transfer including without limitation, the Proposed Effective Date, the name and address of the proposed Transferee,
and a copy of the existing or proposed assignment, sublease or other agreement governing the proposed Transfer; (iii) current financial statements of the proposed Transferee certified by an officer, member, partner or owner thereof, and any such
other information as Landlord may then reasonably require, including without limitation, audited financial statements for the previous three (3) most recent consecutive fiscal years (if available); (iv) the Plans and Specifications (defined below),
if any; and (v) such other information as Landlord may then reasonably require. Tenant shall give Landlord the Tenant’s Notice by registered or certified mail addressed to Landlord at Landlord’s Address specified in the Basic Lease
information. Within fifteen (15) business days after Landlord’s receipt of the Tenant’s Notice (the “Landlord Response Period”) Landlord shall notify Tenant, in writing, of its determination with respect to such requested
proposed Transfer and the election to recapture as set forth in Section 14.5 below. If Landlord does not elect to recapture pursuant to the provisions of Section 14.5 hereof and Landlord does consent to the requested proposed transfer, Tenant may
thereafter assign its interests in and to this Lease or sublease all or a portion of the Premises to the same party and on the same terms as set forth in the Tenant’s Notice. If Landlord withholds consent to a Transfer, Landlord shall include a
reasonably detailed explanation of the grounds for withholding such consent. If Landlord fails to respond to Tenant’s Notice within Landlord’s Response Period, then, after Tenant delivers to Landlord ten (10) days written notice (the
“Second Response Period”) and Landlord fails to respond thereto prior to the 
  

 17 

 
end of the Second Response Period, the proposed Transfer shall then be deemed approved by Landlord. 
  
 14.3 Criteria for Consent: Tenant acknowledges and agrees that, among
other circumstances for which Landlord could reasonably withhold consent to a proposed Transfer, it shall be reasonable for Landlord to withhold its consent where (a) Tenant is or has been in default of its obligations under this Lease beyond
applicable notice and cure periods, (b) the use to be made of the Premises by the proposed Transferee is prohibited under this Lease or differs from the uses permitted under this Lease, (c) the proposed Transferee or its business is subject to
compliance with additional requirements of the ADA beyond those requirements which are applicable to Tenant, unless the proposed Transferee shall (1) first deliver plans and specifications for complying with such additional requirements (the
“Plans and Specifications”) and obtain Landlord’s written consent thereto, and (2) comply with all Landlord’s conditions contained in such consent, (d) the proposed Transferee does not intend to occupy a substantial portion of
the Premises assigned or sublet to it, (e) Landlord reasonably disapproves of the proposed Transferee’s business operating ability or history, reputation or creditworthiness or the character of the business to be conducted by the proposed
Transferee at the Premises, (f) the proposed Transferee is a governmental agency or unit or an existing tenant in the Project, (g) the proposed Transfer would violate any “exclusive” rights of any occupants in the Project or cause Landlord
to violate another agreement or obligation to which Landlord is a party or otherwise subject, (h) Landlord or Landlord’s agent has shown space in the Project to the proposed Transferee or responded to any inquiries from the proposed Transferee
or the proposed Transferee’s agent concerning availability of space in the Project, at any time within the preceding six (6) months, (i) Landlord otherwise determines that the proposed Transfer would have the effect of decreasing the value of
the Building or the Project, or increasing the non-reimbursable expenses associated with operating, maintaining and repairing the Project, (j) either the proposed Transferee, or any person or entity which directly or indirectly, controls, is
controlled by, or is under common control with, the proposed Transferee: (i) occupies space in the Building at the time of the request for consent or (ii) is negotiating with Landlord to lease space in the Building at such time, or (k) the proposed
Transferee will use, store or handle Hazardous Materials (defined below) in or about the Premises of a type, nature or quantity not then acceptable to Landlord. 
  

14.4 Effectiveness of Transfer and Continuing Obligations: Prior to the date on which any permitted Transfer becomes effective, Tenant shall
deliver to Landlord (i) a counterpart of the fully executed Transfer document, (ii) an executed Hazardous Materials Disclosure Certificate substantially in the form of Exhibit E hereto (the “Transferee HazMat Certificate”), and
(iii) Landlord’s standard form of Consent to Assignment or Consent to Sublease (with such changes thereto as Landlord shall reasonably accept), as applicable, executed by Tenant and the Transferee in which each of Tenant and the Transferee
confirms its obligations pursuant to this Lease. Failure or refusal of a Transferee to execute any such consent instrument shall not release or discharge the Transferee from its obligation to do so or from any liability as provided herein. The
voluntary, involuntary or other surrender of this Lease by Tenant, or a mutual cancellation by Landlord and Tenant, shall not work a merger, and any such surrender or cancellation shall, at the option of Landlord, either terminate all or any
existing subleases or operate as an assignment to Landlord of any or all of such subleases. Each permitted Transferee shall assume and be deemed to assume this Lease and shall be and remain liable jointly and severally with Tenant for payment of
Rent and for 
  

 18 

 
the due performance of, and compliance with all the terms, covenants, conditions and agreements herein contained on Tenant’s part to be performed or
compiled with, for the Term of this Lease. No Transfer shall affect the continuing primary liability of Tenant (which, following assignment, shall be joint and several with the assignee), and Tenant shall not be released from performing any of the
terms, covenants and conditions of this Lease. An assignee of Tenant shall become directly liable to Landlord for all obligations of Tenant hereunder, but no Transfer by Tenant shall relieve Tenant of any obligations or liability under this Lease
whether occurring before or after such consent, assignment, subletting or other Transfer. The acceptance of any or all of the Rent by Landlord from any other person (whether or not such person is an occupant of the Premises) shall not be deemed to
be a waiver by Landlord of any provision of this Lease or to be a consent to any Transfer. For purposes hereof, if Tenant is a business entity, direct or indirect transfer of fifty percent (50%) or more of the ownership interest of the entity
(whether in a single transaction or in the aggregate through more than one transaction) to any party other than an Affiliate in accordance with the provisions of Section 14.8 shall be deemed a Transfer and shall be subject to all the provisions
hereof. Any and all options, first rights of refusal, tenant improvement allowances and other similar rights granted to Tenant in this Lease, if any, shall not be assignable by Tenant unless expressly authorized in writing by Landlord. Any transfer
made without Landlord’s prior written consent, shall, at Landlord’s option, be null, void and of no effect, and shall, at Landlord’s option, constitute a material default by Tenant of this Lease. As Additional Rent hereunder, Tenant
shall pay to Landlord each time it requests a Transfer, Landlord’s actual legal and other expenses incurred by Landlord in connection with any actual or proposed Transfer, plus Landlord’s fee then required in connection with such Transfer
provided, in no event shall such fee and legal and other expenses exceed a total of Two Thousand Five Hundred Dollars ($2,500.00). 
  
 14.5 Recapture: If the Transfer (i) by itself or taken together with then existing or pending Transfers covers or totals, as the case may be, more
than fifty percent (50%) of the rentable square feet of the Premises, or (ii) is for a term which by itself or taken together with then existing or pending Transfers is greater than fifty percent (50%) of the period then remaining in the Term of
this Lease as of the time of the Proposed Effective Date, then Landlord shall have the right, to be exercised by giving written notice to Tenant, to recapture the Subject Space described in the Tenant’s Notice. If such recapture notice is
given, it shall serve to terminate this Lease with respect to the proposed Subject Space, or, if the proposed Subject Space covers all the Premises, it shall serve to terminate the entire Tern of this Lease, in either case, as of the Proposed
Effective Date. However, no termination of this Lease with respect to part or all of the Premises shall become effective without the prior written consent, where necessary, of the holder of each deed of trust encumbering the Premises or any other
portion of the Project. If this Lease is terminated pursuant to the foregoing provisions with respect to less than the entire Premises, the Rent shall be adjusted on the basis of the proportion of rentable square feet retained by Tenant to the
rentable square feet originally demised and this Lease as so amended shall continue thereafter in full force and effect. 
  
 14.6 Transfer Premium: If Landlord consents to a Transfer, as a condition thereto, Tenant shall pay to Landlord monthly, as Additional Rent, at the
same time as the monthly installments of Rent are payable hereunder, fifty percent (50%) of any Transfer Premium. The term “Transfer Premium” shall mean all rent, additional rent and other consideration payable by such Transferee which
either initially or over the term of the Transfer exceeds the Rent or pro rata portion 
  

 19 

 
of the Rent, as the case may be, for such space reserved in the Lease, after deducting the actual and Commercially reasonable brokerage commissions and
attorney’s fees incurred in connection with such Transfer. 
  
 14.7 Waiver: Notwithstanding any Transfer, or any indulgences, waivers or extensions of time granted by Landlord to any Transferee, or failure by Landlord to take action against any Transferee, Tenant agrees that Landlord may, at its
option, proceed against Tenant without having taken action against or joined such Transferee, except that Tenant shall have the benefit of any indulgences, waivers and extensions of time granted to any such Transferee. 
  
 14.8 Affiliated Companies/Restructuring of Business Organization: The
assignment or subletting by Tenant of all or any portion of this Lease or the Premises to (i) a parent or subsidiary of Tenant, or (ii) any person or entity which controls, is controlled by or under the common control with Tenant, or (iii) any
entity which purchases all or substantially all of the assets of Tenant, or (iv) any entity into which Tenant is merged or consolidated (all such persons or entities described in clauses (i), (ii), (iii) and (iv) being sometimes herein referred to
as “Affiliates”) shall not be deemed a Transfer under the Section 14 (hence, the aforesaid events shall not be subject to obtaining Landlord’s prior consent; Landlord shall not have any right to receive any Transfer Premium in
connection therewith; and Landlord shall not have the recapture rights described in Section 14.5 above), provided in all instances that: 
  
 14.8.1 any such Affiliate was not formed as a subterfuge to avoid the obligations of this Section 14; 
  
 14.8.2 Tenant give Landlord prior notice of any such assignment or
sublease to an Affiliate; 
  
 14.8.3 the successor of
Tenant has as of the effective date of any such assignment or sublease a tangible net worth and net assets, in the aggregate, computed in accordance with generally accepted accounting principles (but excluding goodwill as an asset), which is
sufficient to meet the obligations of Tenant under this Lease, as reasonably determined by Landlord; 
  
 14.8.4 any such assignment or sublease shall be subject to all of the terms and provisions of this Lease, and such assignee or sublessee (i.e. any
such Affiliate), other than in the case of an Affiliate resulting from a merger or consolidation as described in Section 14.8(iv) above, shall assume, in a written document reasonably satisfactory to Landlord and delivered to Landlord upon or prior
to the effective date of such assignment or sublease, all the obligations of Tenant under this Lease; and 
  
 14.8.5 Tenant and any guarantor shall remain fully liable for all obligations to be performed by Tenant under this Lease, except in the case of an
Affiliate resulting from the acquisition of all or substantially all of the assets of Tenant described in Section 14.8(iii) or from a merger or consolidation as described in Section 14.8(iv) above. 
  
 15. Subordination/UCC Lien Waiver. To the fullest extent permitted by
law, this Lease, the rights of Tenant under this Lease and Tenant’s leasehold interest shall be subject and 
  

 20 

 
subordinate at all times to: (i) all ground leases or underlying leases which may now exist or hereafter be executed affecting the Building, the Lot, or any
other portion of the Project, and (ii) the lien of any mortgage or deed of trust which may now or hereafter exist for which the Building, the Lot, ground leases or underlying leases, any other portion of the Project or Landlord’s interest or
estate in any of said items is specified as security. Notwithstanding the foregoing, Landlord or any such ground lessor, mortgagee, or any beneficiary shall have the right to require this Lease be superior to any such ground leases or underlying
leases or any such liens, mortgage or deed of trust. If any ground lease or underlying lease terminates for any reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of foreclosure is made for any reason, Tenant shall attorn
to and become the Tenant of the successor in interest to Landlord, provided such successor in interest will not disturb Tenant’s use, occupancy or quiet enjoyment of the Premises if Tenant is not in material default of the terms and provisions
of this Lease. The successor in interest to Landlord following foreclosure, sale or deed in lieu thereof shall not be: (a) liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b)
subject to any offsets or defenses which Tenant might have against any prior lessor; (c) bound by prepayment of more than one (1) month’s Rent; or (d) liable to Tenant for any Security Deposit not actually received by such successor in interest
to the extent any portion or all of such Security Deposit has not already been forfeited by, or refunded to, Tenant. Landlord shall be liable to Tenant for all or any portion of the Security Deposit not forfeited by, or refunded to Tenant, until and
unless Landlord transfers such Security Deposit to the successor in interest. Tenant covenants and agrees to execute (and acknowledge if required by Landlord, any lender or ground lessor) and deliver, within ten (10) business days of a demand or
request by Landlord and in the form reasonably requested by Landlord, ground lessor, mortgagee or beneficiary, any additional documents evidencing the priority or subordination of this Lease with respect to any such ground leases or underlying
leases or the lien of any such mortgage or deed of trust. 
  
 Landlord acknowledges Tenant’s right to finance and to secure under the Uniform Commercial Code, Tenant’s Property which does not constitute a fixture located in or at the Premises, and Landlord agrees to execute a waiver
releasing any lien Landlord may have in such Tenant’s Property which does not constitute a fixture in a form acceptable to Landlord, in Landlord’s sole discretion. 
  
 16. Right of Entry. Landlord and its agents shall have the right to enter the Premises at all reasonable times, upon
reasonable prior notice of not less than twenty four (24) hours (except in the event of an emergency, in which case no notice shall be required), for purposes of inspection, exhibition, posting of notices, investigation, replacements, repair,
maintenance and alteration. It is further agreed that Landlord shall have the right to use any and all means Landlord deems necessary to enter the Premises in an emergency. Landlord shall have the right to place “for rent” or “for
lease” signs on the outside of the Premises, the Building and in the Common Areas. Landlord shall also have the right to place “for sale” signs on the outside of the Building and in the Common Areas. Tenant hereby waives any Claim
from damages or for any injury or inconvenience to or interference with Tenant’s business, or any other loss occasioned thereby except for any Claim for any of the foregoing arising out of the sole active gross negligence or willful misconduct
of Landlord or its authorized representatives. 
  

 21 

 17. Estoppel Certificate. Tenant shall execute (and acknowledge if required by any lender or
ground lessor) and deliver to Landlord, within ten (10) business days after Landlord provides such to Tenant, a statement in writing certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such
modification), the date to which the Rent and other charges are paid in advance, if any, acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of Landlord hereunder or specifying such defaults as are claimed,
and such other matters as Landlord may reasonably require. Any such statement may be conclusively relied upon by Landlord and any prospective purchaser or encumbrancer of the Building or other portions of the Project. Tenant’s failure to
deliver such statement within such time shall be conclusive upon the Tenant that (a) this Lease is in full force and effect, without modification except as may be represented by Landlord; (b) there are no uncured defaults in Landlord’s
performance; and (c) not more than one month’s Rent has been paid in advance. 
  
 18. Tenant’s Default. The occurrence of any one or more of the following events shall, at Landlord’s option, constitute a material default by Tenant of the provisions of this Lease: 
  
 18.1 The abandonment of the Premises by Tenant or the vacation of the
Premises by Tenant which would cause any insurance policy to be invalidated or otherwise lapse; 
  
 18.2 The failure by Tenant to make any payment of Rent, Additional Rent or any other payment required hereunder within three (3) business days
after Landlord’s delivery of written notice to Tenant that said payment is past due. Tenant agrees that any such written notice delivered by Landlord shall, to the fullest extent permitted by law, serve as the statutorily required notice under
applicable law. In addition to the foregoing, Tenant agrees to notice and service of notice as provided for in this Lease. 
  
 18.3 The failure by Tenant to observe, perform or comply with any of the conditions, covenants or provisions of this Lease (except failure to make
any payment of Rent and/or Additional Rent and any other payment required hereunder) and such failure is not cured within (i) thirty (30) days of the date on which Landlord delivers written notice of such failure to Tenant for all failures other
than with respect to (a) Hazardous Materials (defined in Section 27 hereof), (b) Tenant making the repairs, maintenance and replacements required under the provisions of Section 11.1 hereof, or (c) the timely delivery by Tenant of a subordination,
non-disturbance and attornment agreement (an “SNDA”), a counterpart of a fully executed Transfer document and a consent thereto (collectively, the “Transfer Documents”), an estoppel certificate and insurance certificates, (ii)
ten (10) days of the date on which Landlord delivers written notice of such failure to Tenant for all failures in any way related to Hazardous Materials or Tenant failing to timely make the repairs, maintenance or replacements required by Section
11.1, and (iii) the time period, if any, specified in the applicable sections of this Lease with respect to subordination, assignment and sublease, estoppel certificates and insurance. However, Tenant shall not be in default of its obligations
hereunder if such failure (other than any failure of Tenant to timely and properly make the repairs, maintenance, or replacements required by Section 11.1, or timely deliver an SNDA, the Transfer Documents, an estoppel certificate or insurance
certificates, for which no additional cure period shall be given to Tenant) cannot reasonably be cured within such thirty (30) or ten (10) day period, as applicable, and Tenant promptly commences, and thereafter diligently proceeds with same

  

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to completion, all actions necessary to cure such failure as soon as is reasonably possible, but in no event shall the completion of such cure be later than
ninety (90) days after the date on which Landlord delivers to Tenant written notice of such failure, unless Landlord, acting reasonably and in good faith, otherwise expressly agrees in writing to a longer period of time based upon the circumstances
relating to such failure as well as the nature of the failure and the nature of the actions necessary to cure such failure; or 
  
 18.4 The making of a general assignment by Tenant for the benefit of creditors, the filing of a voluntary petition by Tenant or the filing of an
involuntary petition by any of Tenant’s creditors seeking the rehabilitation, liquidation, or reorganization of Tenant under any law relating to bankruptcy, insolvency or other relief of debtors and, in the case of an involuntary action, the
failure to remove or discharge the same within sixty (60) days of such filing, the appointment of a receiver or other custodian to take possession of substantially all of Tenant’s assets or this leasehold, Tenant’s insolvency or inability
to pay Tenants debts or failure generally to pay Tenant’s debts when due, any court entering a decree or order directing the winding up or liquidation of Tenant or of substantially all of Tenant’s assets, Tenant taking any action toward
the dissolution or winding up of Tenant’s affairs, the cessation or suspension of Tenant’s use of the Premises, or the attachment, execution or other judicial seizure of substantially all of Tenant’s assets or this leasehold.

  
 19. Remedies for Tenant’s Default 
  
 19.1 Landlord’s Rights: In the event of Tenant’s material
default under this Lease which continues beyond any applicable notice and cure periods, Landlord may terminate Tenant’s right to possession of the Premises by any lawful means in which case upon delivery of written notice by Landlord this Lease
shall terminate on the date specified by Landlord in such notice and Tenant shall immediately surrender possession of the Premises to Landlord. In addition, the Landlord shall have the immediate right of re-entry whether or not this Lease is
terminated, and if this right of re-entry is exercised following abandonment of the Premises by Tenant, Landlord may consider any of Tenant’s Property left on the Premises to also have been abandoned. No re-entry or taking possession of the
Premises by Landlord pursuant to this Section 19 shall be construed as an election to terminate this Lease unless a written notice of such intention is given to Tenant. If Landlord relets the Premises or any portion thereof, Tenant shall be liable
immediately to Landlord for all costs Landlord incurs in reletting the Premises or any part thereof, including, without limitation, broker’s commissions, expenses of cleaning, redecorating, and further improving the Premises and other similar
costs (collectively, the “Reletting Costs”). Any and all of the Reletting Costs shall be fully chargeable to Tenant and shall not be prorated or otherwise amortized in relation to any new lease for the Premises or any portion thereof.
Reletting may be for a period shorter or longer than the remaining term of this Lease. In no event shall Tenant be entitled to any excess rent received by Landlord. No act by Landlord other than giving written notice to Tenant shall terminate this
Lease. Acts of maintenance, efforts to relet the Premises or the appointment of a receiver on Landlord’s initiative to protect Landlord’s interest under this Lease shall not constitute a termination of Tenant’s right to possession. So
long as this Lease is not terminated, Landlord shall have the right to remedy any default of Tenant, to maintain or improve the Premises, to cause a receiver to be appointed to administer the Premises and new or existing subleases and to add to the
Rent payable 
  

 23 

 
hereunder all of Landlord’s reasonable costs in so doing, with interest at the maximum rate permitted by law from the date of such expenditure.

  
 19.2 Damages Recoverable: If Tenant breaches this Lease
and abandons the Premises before the end of the Term, or if Tenant’s right to possession is terminated by Landlord because of a breach or default under this Lease, then in either such case, Landlord may recover from Tenant all damages suffered
by Landlord as a result of Tenants failure to perform its obligations hereunder, including without limitation, the unamortized cost of any Tenant Improvements constructed by or on behalf of Tenant pursuant to Exhibit B hereto to the extent
Landlord has paid for such improvements, the unamortized portion of any broker’s or leasing agent’s commission incurred with respect to the leasing of the Premises to Tenant for the balance of the Term of the Lease remaining after the date
on which Tenant is in default of its obligations hereunder, and all Reletting Costs, and the worth at the time of the award (computed in accordance with paragraph (3) of Subdivision (a) of Section 1951.2 of the California Civil Code) of the amount
by which the Rent then unpaid hereunder for the balance of the Lease Term exceeds the amount of such loss of Rent for the same period which Tenant proves could be reasonably avoided by Landlord and in such case, Landlord prior to the award, may
relet the Premises for the purpose of mitigating damages suffered by Landlord because of Tenant’s failure to perform its obligations hereunder; provided, however, that even though Tenant has abandoned the Premises following such breach, this
Lease shall nevertheless continue in full force and effect for as long as Landlord does not terminate Tenant’s right of possession, and until such termination, Landlord shall have the remedy described in Section 1951.4 of the California Civil
Code (Landlord may continue this Lease in effect after Tenant’s breach and abandonment and recover Rent as it becomes due, if Tenant has the right to sublet or assign, subject only to reasonable limitations) and may enforce all its rights and
remedies under this Lease, including the right to recover the Rent from Tenant as it becomes due hereunder. The “worth at the time of the award” within the meaning of Subparagraphs (a)(1) and (a)(2) of Section 1951.2 of the California
Civil Code shall be computed by allowing interest at the rate of ten percent (10%) per annum. Tenant waives redemption or relief from forfeiture under California Code of Civil Procedure Sections 1174 and 1179 (or any successor or substitute
statute), or under any other present or future law, in the event Tenant is evicted or Landlord takes possession of the Premises by reason of any default of Tenant hereunder. Tenant hereby waives for Tenant and for all those claiming under Tenant all
rights now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ, Tenant’s right of occupancy of the Premises after any termination of this Lease. 
  
 19.3 Rights and Remedies Cumulative: The foregoing rights and remedies
of Landlord are not exclusive; they are cumulative in addition to any rights and remedies now or hereafter existing at law, in equity by statute or otherwise, or to any equitable remedies Landlord may have, and to any remedies Landlord may have
under bankruptcy laws or laws affecting creditors’ rights generally. In addition to all remedies set forth above, if Tenant materially defaults under this Lease, all options granted to Tenant hereunder shall automatically terminate, unless
otherwise expressly agreed to in writing by Landlord. 
  
 20.
Holding Over. If Tenant holds over after the expiration of the Lease Term hereof, with or without the express or implied consent of Landlord, such tenancy shall be from month-to- 
  

 24 

 
month only, and shall not constitute a renewal hereof or an extension for any further term, and in such case Base Rent shall be payable at a monthly rate
equal to one hundred fifty percent (150%) of the greater of (i) the Base Rent applicable during the last rental period of the Lease Term under this Lease or (ii) the fair market rental rate for the Premises as of the commencement of such holdover
period. Such month-to-month tenancy shall be subject to every other term, covenant and agreement contained herein. Landlord hereby expressly reserves the right to require Tenant to surrender possession of the Premises to Landlord as provided in this
Lease upon the expiration or other termination of this Lease. The provisions of this Section 20 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. If Tenant fails to surrender
the Premises upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all Claims resulting from such failure,
including but not limited to, any Claims made by any succeeding tenant founded upon such failure to surrender, and any lost profits to Landlord resulting therefrom. 
  
 21. Landlord’s Default. Landlord shall not be considered in default of this Lease unless Landlord fails within a
reasonable time to perform an obligation required to be performed by Landlord hereunder. For purposes hereof, a reasonable time shall not be less than thirty (30) days after receipt by Landlord of written notice specifying the nature of the
obligation Landlord has not performed; provided, however, that if the nature of Landlord’s obligation is such that more than thirty (30) days, after receipt of written notice, is reasonably necessary for its performance, then Landlord shall not
be in default of this Lease if performance of such obligation is commenced within such thirty (30) day period and thereafter diligently pursued to completion. 
  

22. Parking. Tenant may use the number of non-designated and non-exclusive parking spaces specified in the Basic Lease information. Landlord
shall exercise reasonable efforts to ensure that such spaces are available to Tenant for its use, but Landlord shall not be required to enforce Tenant’s right to use the same. In no event shall Tenant or any of Tenant’s Representatives
park or permit any parking of vehicles overnight. 
  
 23.
Transfer of Landlord’s Interest. If there is any sale or other transfer of the Premises or any other portion of the Project by Landlord or any of Landlord’s interest therein, Landlord shall automatically be entirely released from all
liability under this Lease and Tenant agrees to look solely to such transferee for the performance of Landlord’s obligations hereunder after the date of such transfer. A ground lease or similar long term lease by Landlord of the entire Building
or Lot, of which the Premises are a part, shall be deemed a sale within the meaning of this Section 23. Tenant agrees to attorn to such new owner provided such new owner does not disturb Tenant’s use, occupancy or quiet enjoyment of the
Premises so long as Tenant is not in material default of any of the provisions of this Lease. 
  
 24. Waiver. No delay or omission in the exercise of any right or remedy of either party on any default by the other party shall impair such a right or remedy or be construed as a waiver. The subsequent
acceptance of Rent by Landlord after default by Tenant of this Lease shall not be deemed a waiver of such default, other than a waiver of timely payment for the particular Rent payment involved, and shall not prevent Landlord from maintaining an
unlawful detainer or other 
  

 25 

 
action based on such breach. No payment by Tenant or receipt by Landlord of a lesser amount than the monthly Rent and other sums due hereunder shall be
deemed to be other than on account of the earliest Rent or other sums due, nor shall any endorsement or statement on any check or accompanying any check or payment be deemed an accord and satisfaction; and Landlord may accept such check or payment
without prejudice to Landlord’s right to recover the balance of such Rent or other sum or pursue any other remedy provided in this lease. No failure, partial exercise or delay on the part of the Landlord in exercising any right, power or
privilege hereunder shall operate as a waiver thereof. 
  
 25.
Casualty Damage 
  
 25.1 Casualty: If the Premises or
any part [excluding any of Tenant’s Property, any Tenant Improvements and any Alterations installed by or for the benefit of Tenant (collectively, the “Tenant’s FF&E”)] shall be damaged or destroyed by fire or other casualty,
Tenant shall give immediate written notice thereof to Landlord. Within sixty (60) days after receipt by Landlord of such notice, Landlord shall notify Tenant, in writing, whether the necessary repairs can reasonably be made, as reasonably determined
by Landlord: (a) within ninety (90) days; (b) in more than ninety (90) days but in less than one hundred eighty (180) days; or (c) in more than one hundred eighty (180) days, from the date of such notice. 
  
 25.1.1 Minor Insured Damage: If the Premises (other than the Tenants
FF&E) are damaged only to such extent that repairs, rebuilding and/or restoration can be reasonably completed within ninety (90) days, this Lease shall not terminate and, provided that insurance proceeds are available and paid to Landlord (or
would have been paid to Landlord had Landlord compiled with Section 12.6 of this Lease) to fully repair the damage and/or Tenant otherwise voluntarily contributes any shortfall thereof to Landlord, Landlord shall repair the Premises to substantially
the same condition that existed prior to the occurrence of such casualty, except Landlord shall not be required to rebuild, repair, or replace any of Tenant’s FF&E. The Rent payable hereunder shall be abated proportionately from the date
and to the extent Tenant is unable to continue its business operations in the affected portions of the Premises (and Tenant actually discontinues such operations) until any and all repairs required herein to be made by Landlord are substantially
completed but such abatement shall only be to the extent (i) of the portion of the Premises which is actually rendered unusable and unfit for continuance of Tenant’s business operations (and Tenant actually discontinues such operations) and
only during the time Tenant is not actually using same, and (ii) Landlord receives rental abatement insurance proceeds therefor (or would have received such proceeds had Landlord compiled with Section 12.6 of this Lease). 
  
 25.1.2 Insured Damage Requiring More Than 90 Days To Repair: If the
Premises (other than the Tenant’s FF&E) are damaged only to such extent that repairs, rebuilding and/or restoration can be reasonably completed, as reasonably determined by Landlord, in more than ninety (90) days but in less than one
hundred eighty (180) days, then Landlord shall have the option of: (a) terminating the Lease within thirty (30) days of making the determination of the extent of such damage, in which event the Rent shall be abated from the date of the occurrence of
such damage, provided Tenant diligently proceeds to and expeditiously vacates the Premises (but, in all events Tenant must vacate and surrender the Premises to Landlord by no later than thirty (30) days 
  

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thereafter or there shall not be any abatement of Rent until Tenant so vacates the Premises); or (b) electing to repair the Premises to substantially the
same condition that existed prior to the occurrence of such casualty, provided insurance proceeds are available and paid to Landlord (or would have been paid to Landlord had Landlord compiled with Section 12.6 of this Lease) and Tenant otherwise
voluntarily contributes any shortfall thereof to Landlord to fully repair the damage (except that Landlord shall not be required to rebuild, repair, or replace any of Tenant’s FF&E). The Rent payable hereunder shall be abated
proportionately from the date and to the extent Tenant is unable to continue its business operations in the affected portions of the Premises (and Tenant actually discontinues such operations) until any and all repairs required herein to be made by
Landlord are substantially completed but such abatement shall only be to the extent (i) of the portion of the Premises which is actually rendered unusable and unfit for continuance of Tenant’s business operations (and Tenant actually
discontinues such operations), and (ii) Landlord receives rental abatement insurance proceeds therefor (or Landlord would have received such proceeds had Landlord complied with Section 12.6 of this Lease). If Landlord fails to substantially complete
such repairs within one hundred eighty (180) days after the date on which Landlord is notified by Tenant of the occurrence of such casualty [such 180-day period to be extended for delays caused by Tenant or any of Tenants Representatives
(“Tenant Delays”) or any force majeure events, which events shall include, but not be limited to, acts or events beyond Landlord’s and/or its contractors’ control, acts of God, earthquakes, strikes, lockouts, riots, boycotts,
casualties not caused by Landlord or Tenant, discontinuance of any utility or other service required for performance of the work, moratoriums, governmental delays in issuing permits, governmental agencies and weather, and the lack of availability or
shortage of materials (“Force Majeure Delays”)], Tenant may within ten (10) business days after expiration of such one hundred eighty (180) day period (as same may be extended), terminate this Lease by delivering written notice to Landlord
as Tenant’s exclusive remedy, whereupon all rights of Tenant hereunder shall cease and terminate thirty (30) days after Landlord’s receipt of such notice and Tenant shall immediately vacate the Premises and surrender possession thereof to
Landlord. 
  
 25.1.3 Major Insured Damage: If the Premises
(other than the Tenant’s FF&E) are damaged to such extent that repairs, rebuilding and/or restoration cannot be reasonably completed, as reasonably determined by Landlord, within one hundred eighty (180) days, then either Landlord or Tenant
may terminate this Lease by giving written notice within thirty (30) days after notice from Landlord regarding the time period of repair. If either party notifies the other of its intention to so terminate the Lease, then this Lease shall terminate
and the Rent shall be abated from the date of the occurrence of such damage, provided Tenant diligently proceeds to and expeditiously vacates the Premises (but, in all events Tenant must vacate and surrender the Premises to Landlord by no later than
thirty (30) days thereafter or there shall not be any abatement of Rent until Tenant so vacates the Premises). If neither party elects to terminate this Lease, Landlord shall promptly commence and diligently prosecute to completion the repairs to
the Premises, provided insurance proceeds are available and paid to Landlord (or would have been paid to Landlord had Landlord complied with Section 12.6 of this Lease) to fully repair the damage or Tenant voluntarily contributes any shortfall
thereof to Landlord (except that Landlord shall not be required to rebuild, repair, or replace any of Tenant’s FF&E). During the time when Landlord is prosecuting such repairs to substantial completion, the Rent payable hereunder shall be
abated proportionately from the date and to the extent Tenant is unable to continue its business operations in the affected portions 
  

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of the Premises (and Tenant actually discontinues such operations) until any and all repairs required herein to be made by Landlord are substantially
completed but such abatement shall only be to the extent (i) of the portion of the Premises which is actually rendered unusable and unfit for continuance of Tenant’s business operations (and Tenant actually discontinues such operations), and
(ii) Landlord receives rental abatement insurance proceeds therefor (or would have received such proceeds had Landlord complied with Section 12.6 of this Lease). 
  
 25.1.4 Damage Near End of Term: Notwithstanding anything to the contrary contained in this Lease except for the
provisions of Section 25.3 below, if the Premises are substantially damaged or destroyed during the last year of then applicable term of this Lease, either Landlord or Tenant may, at their option, cancel and terminate this Lease by giving written
notice to the other party of its election to do so within thirty (30) days after receipt by Landlord of notice from Tenant of the occurrence of such casualty. If either party so elects to terminate this Lease, all rights of Tenant hereunder shall
cease and terminate ten (10) days after Tenants receipt or delivery of such notice, as applicable, and Tenant shall immediately vacate the Premises and surrender possession thereof to Landlord. 
  
 25.2 Deductible and Uninsured Casualty: Tenant shall be responsible
for and shall pay to Landlord, as Additional Rent, the deductible amounts under the insurance policies obtained by Landlord and Tenant under this Lease if the proceeds of which are used to repair the Premises as contemplated in this Section 25.
Notwithstanding the foregoing, if other portions of the Building are also damaged by said casualty and insurance proceeds are payable therefor, then Tenant shall only pay its proportionate share of the deductible as reasonably determined by
Landlord. If any portion of the Premises is damaged and is not fully covered by the aggregate of insurance proceeds received by Landlord and any applicable deductible, and Tenant does not voluntarily contribute any shortfall thereof to Landlord, or
if the holder of any indebtedness secured by the Premises requires that the insurance proceeds be applied to such indebtedness, then Landlord or Tenant shall have the right to terminate this Lease by delivering written notice of termination to the
other party within thirty (30) days after the date of notice to Tenant of any such event, whereupon all rights and obligations of Tenant shall cease and terminate hereunder, except for those obligations expressly provided for in this Lease to
survive such termination of the Lease. 
  
 25.3 Tenant’s
Fault and Lender’s Rights: Notwithstanding anything to the contrary contained herein, if the Premises (other than Tenant’s FF&E) or any other portion of the Building be damaged by fire or other casualty resulting from the
intentional or negligent acts or omissions of Tenant or any of Tenant’s Representatives, (i) the Rent shall not be diminished during the repair of such damage, (ii) Tenant shall not have any right to terminate this Lease due to the occurrence
of such casualty or damage, and (iii) Tenant shall be liable to Landlord for the cost and expense of the repair and restoration of all or any portion of the Building to the extent caused thereby (including, without limitation, any deductible) to the
extent such cost and expense is not covered by insurance proceeds. Notwithstanding anything to the contrary contained herein, if the holder of any indebtedness secured by the Premises or any other portion of the Project requires that the insurance
proceeds be applied to such indebtedness, then Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within thirty (30) days after the date of notice to Tenant of any such event, whereupon all
rights and obligations of Tenant 
  

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shall cease and terminate hereunder, except for those obligations expressly provided for in this Lease to survive such termination of the Lease. 

 
 25.4 Tenant’s Waiver: Landlord shall not be liable for any
inconvenience or annoyance to Tenant, injury to the business of Tenant, loss of use of any part of the Premises by Tenant or loss of Tenant’s Property, resulting in any way from such damage, destruction or the repair thereof, except that,
Landlord shall allow Tenant a fair diminution of Rent during the time and to the extent the Premises are actually unusable and unfit for continuance of Tenant’s business operations and Tenant actually discontinues such operations, as
specifically provided above in this Section 25. With respect to any damage or destruction which Landlord is obligated to repair or may elect to repair, Tenant hereby waives all rights to terminate this Lease or offset any amounts against Rent
pursuant to rights accorded Tenant by any law currently existing or hereafter enacted, including but not limited to, all rights pursuant to the provisions of Sections 1932(2.), 1933(4.), 1941 and 1942 of the California Civil Code, as the same may be
amended or supplemented from time to time. 
  
 26.
Condemnation. If twenty-five percent (25%) or more of the Premises is condemned by eminent domain, inversely condemned or sold in lieu of condemnation for any public or quasi-public use or purpose (“Condemned”), then Tenant or Landlord
may terminate this Lease as of the date when physical possession of the Premises is taken and title vests in such condemning authority, and Rent shall be adjusted to the date of termination. Tenant shall not because of such condemnation assert any
claim against Landlord or the condemning authority for any compensation because of such condemnation, and Landlord shall be entitled to receive the entire amount of any award without deduction for any estate of interest or other interest of Tenant;
provided, however, the foregoing provisions shall not preclude Tenant, at Tenant’s sole cost and expense, from obtaining any separate award to Tenant for loss of or damage to Tenant’s Property or for damages for cessation or interruption
of Tenant’s business provided such award is separate from Landlord’s award and provided further such separate award does not diminish nor otherwise impair the award otherwise payable to Landlord. In addition to the foregoing, Tenant shall
be entitled to seek compensation for the relocation costs recoverable by Tenant pursuant to the provisions of California Government Code Section 7262. If neither party elects to terminate this Lease, Landlord shall, if necessary, promptly proceed to
restore the Premises or the Building, as applicable, to substantially its same condition prior to such partial condemnation, allowing for the reasonable effects of such partial condemnation, and a proportionate allowance shall be made to Tenant, as
reasonably determined by Landlord, for the Rent corresponding to the time during which, and to the part of the Premises of which, Tenant is deprived on account of such partial condemnation and restoration. Landlord shall not be required to spend
funds for restoration in excess of the amount received by Landlord as compensation awarded. 
  
 27. Environmental Matters/Hazardous Materials 
  
 27.1 Hazardous Materials Disclosure Certificate: Prior to executing this Lease, Tenant has delivered to Landlord Tenant’s executed initial Hazardous Materials Disclosure Certificate (the “Initial
HazMat Certificate”), a copy of which is attached hereto as Exhibit E. Tenant covenants, represents and warrants to Landlord that the information in the Initial HazMat Certificate is true and correct and accurately describes the use(s)
of Hazardous Materials which will 
  

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be made and/or used on the Premises by Tenant. Tenant shall, commencing with the date which is one year from the Commencement Date and continuing every year
thereafter, deliver to Landlord, an executed Hazardous Materials Disclosure Certificate (“the “HazMat Certificate”) describing Tenant’s then present use of Hazardous Materials on the Premises, and any other reasonably necessary
documents as requested by Landlord. The HazMat Certificates required hereunder shall be in substantially the form attached hereto as Exhibit E. 
  
 27.2 Definition of Hazardous Materials: As used in this Lease, the term Hazardous Materials shall mean and include (a) any hazardous or toxic
wastes, materials or substances, and other pollutants or contaminants, which are or become regulated by any Environmental Laws; (b) petroleum, petroleum by products, gasoline, diesel fuel, crude oil or any fraction thereof; (c) asbestos and asbestos
containing material, in any form, whether friable or non-friable; (d) polychlorinated biphenyls, (e) radioactive materials; (f) lead and lead-containing materials, (g) any other material, waste or substance displaying toxic, reactive, ignitable or
corrosive characteristics, as all such terms are used in their broadest sense, and are defined or become defined by any Environmental Law (defined below); or (h) any materials which cause or threatens to cause a nuisance upon or waste to any portion
of the Project or any surrounding property; or poses or threatens to pose a hazard to the health and safety of persons on the Premises, any other portion of the Project or any surrounding property. For purposes of this Lease, the term
“Hazardous Materials” shall not include nominal amounts of ordinary household cleaners, office supplies and janitorial supplies which are not actionable under any Environmental Laws. 
  
 27.3 Prohibition; Environmental Laws: Tenant shall not be entitled to
use or store any Hazardous Materials on, in, or about any portion of the Premises and the Project without, in each instance, obtaining Landlord’s prior written consent thereto. If Landlord, in its sole discretion, consents to any such usage or
storage, then Tenant shall be permitted to use and/or store only those Hazardous Materials that are necessary for Tenant’s business and to the extent disclosed in the HazMat Certificate and as expressly approved by Landlord in writing. Any such
usage and storage may only be to the extent of the quantities of Hazardous Materials as specified in the then applicable HazMat Certificate as expressly approved by Landlord. In all events such usage and storage must at all times be in full
compliance with any and all local, state and federal environmental, health and/or safety-related laws, statutes, orders, standards, courts’ decisions, ordinances, rules and regulations (as interpreted by judicial and administrative decisions),
decrees, directives, guidelines, permits or permit conditions, currently existing and as amended, enacted, issued or adopted in the future which are or become applicable to Tenant or all or any portion of the Premises (collectively, the
“Environmental Laws”). Tenant agrees that any changes to the type and/or quantities of Hazardous Materials specified in the most recent HazMat Certificate may be implemented only with the prior written consent of Landlord, which consent
may be given or withheld in Landlord’s sole discretion. Tenant shall not be entitled nor permitted to install any tanks under, on or about the Premises for the storage of Hazardous Materials without the express written consent of Landlord,
which may be given or withheld in Landlord’s sole discretion. Landlord shall have the right, upon advance notice to Tenant of twenty four (24) hours (except in the event of an emergency, in which event no notice shall be required) to (i)
inspect the Premises, (ii) conduct tests and investigations to determine whether Tenant is in compliance with the provisions of this Section 27 or to determine if Hazardous Materials are present in, on or about the Project, and 
  

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(iii) request lists of all Hazardous Materials used, stored or otherwise located on, under or about any portion of the Premises and/or the Common Areas. The
cost of all such inspections, tests and investigations shall be borne by parties other than Tenant, unless it is determined that Tenant or any of Tenant’s Representatives are directly or indirectly responsible in any manner for any
contamination revealed by such inspections, tests and investigations, in which event Tenant shall be solely responsible for such costs. The aforementioned rights granted herein to Landlord and its representatives shall not create (a) a duty on
Landlord’s part to inspect, test, investigate, monitor or otherwise observe the Premises or the activities of Tenant and Tenant’s Representatives with respect to Hazardous Materials, including without limitation, Tenant’s operation,
use and any remediation related thereto, or (b) liability on the part of Landlord and its representatives for Tenant’s use, storage, disposal or remediation of Hazardous Materials, it being understood that Tenant shall be solely responsible for
all liability in connection therewith. 
  
 27.4 Tenant’s
Environmental Obligations: Tenant shall give to Landlord immediate verbal and follow-up written notice of any spills, releases, discharges, disposals, emissions, migrations, removals or transportation of Hazardous Materials on, under or about
any portion of the Premises or in any Common Areas; provided that Tenant has actual, implied or constructive knowledge of such event(s). Tenant, at its sole cost and expense, covenants and warrants to promptly investigate, clean up, remove, restore
and otherwise remediate (including, without limitation, preparation of any feasibility studies or reports and the performance of any and all closures) any spill, release, discharge, disposal, emission, migration or transportation of Hazardous
Materials arising from or related to the intentional or negligent acts or omissions of Tenant or Tenant’s Representatives such that the affected portions of the Project and any adjacent property are returned to the condition existing prior to
the appearance of such Hazardous Materials. Any such investigation, clean up, removal, restoration and other remediation shall only be performed after Tenant has obtained Landlord’s prior written consent, which consent shall not be unreasonably
withheld so long as such actions would not potentially have a material adverse long-term or short-term effect on any portion of the Project. Notwithstanding the foregoing, Tenant shall be entitled to respond immediately to an emergency without first
obtaining Landlord’s prior written consent. Tenant, at its sole cost and expense, shall conduct and perform, or cause to be conducted and performed, all closures as required by any Environmental Laws or any agencies or other governmental
authorities having jurisdiction thereof. If Tenant fails to so promptly investigate, clean up, remove, restore, provide closure or otherwise so remediate, Landlord may, but without obligation to do so, following five (5) business days notice (except
in the event of an emergency, in which event no notice shall be required), take any and all steps necessary to rectify the same and Tenant shall promptly reimburse Landlord, upon demand, for all costs and expenses to Landlord of performing
investigation, clean up, removal, restoration, closure and remediation work. All such work undertaken by Tenant, as required herein, shall be performed in such a manner so as to enable Landlord to make full economic use of the Premises and the other
portions of the Project after the satisfactory completion of such work. 
  
 27.5 Environmental Indemnity: In addition to Tenant’s obligations as set forth hereinabove, Tenant agrees to, and shall, protect, indemnify, defend, (with counsel reasonably acceptable to Landlord) and hold Landlord and the
other Indemnitees harmless from and against any and all Claims (including, without limitation, diminution in value of any portion of the Premises or 
  

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the Project, damages for the loss of or restriction on the use of rentable or usable space, and from any adverse impact of Landlord’s marketing of any
space within the Project) arising at any time during or after the Term of this Lease in connection with or related to, directly or indirectly, the use, presence, transportation, storage, disposal, migration, removal, spill, release or discharge of
Hazardous Materials on, in or about any portion of the Project as a result (directly or indirectly) of the intentional or negligent acts or omissions of Tenant or any of Tenants Representatives. Neither the written consent of Landlord to the
presence, use or storage of Hazardous Materials in, on, under or about any portion of the Project nor the strict compliance by Tenant with all Environmental Laws shall excuse Tenant from its obligations of indemnification pursuant hereto. Tenant
shall not be relieved of its indemnification obligations under the provisions of this Section 27.5 due to Landlord’s status as either an “owner” or “operator” under any Environmental Laws. 
  
 27.6 Survival: Tenant’s obligations and liabilities pursuant to
the provisions of this Section 27 shall survive the expiration or earlier termination of this Lease. If it is determined by Landlord that due to the negligence or intentional act or omission of Tenant or Tenant’s Representatives, the condition
of all or any portion of the Project is not in compliance with the provisions of this Lease with respect to Hazardous Materials, including without limitation, all Environmental Laws at the expiration or earlier termination of this Lease, then
Landlord may require Tenant to hold over possession of the Premises until Tenant can surrender the Premises to Landlord in the condition required by this Section 7 and Section 10.2 of this Lease, including without limitation, the conduct or
performance of any closures as required by any Environmental Laws. Any such holdover by Tenant will be with Landlord’s consent, will not be terminable by Tenant in any event or circumstance and will otherwise be subject to the provisions of
Section 20 of this Lease. 
  
 27.7 Tenant’s
Exculpation: Tenant shall neither be liable for nor otherwise obligated to Landlord under any provision of this Lease with respect to: (i) any claim, remediation obligation, investigation obligation, liability, cause of action, attorney’s
fees, consultants’ cost, expense or damage resulting from any Hazardous Material present in, on or about the Premises, the Building or the Park to the extent neither caused nor otherwise permitted, directly or indirectly, by Tenant or
Tenant’s Representatives; or (ii) the removal, investigation, monitoring or remediation of any Hazardous Material present in, on or about the Premises, the Building or the Park caused by any source, including third parties other than Tenant and
Tenant’s Representatives, as a result of or in connection with the acts or omissions of persons other than Tenant or Tenant’s Representatives; provided, however, Tenant shall be fully liable for and otherwise obligated to Landlord under
the provisions of this Lease for all liabilities, costs, damages, penalties, claims, judgments, expenses (including without limitation, attorneys’ and experts’ fees and costs) and losses to the extent (a) Tenant or any of Tenant’s
Representatives contributes to the presence of such Hazardous Materials or Tenant and/or any of Tenant’s Representatives exacerbates the conditions caused by such Hazardous Materials, or (b) Tenant and/or Tenant’s Representatives allows or
permits persons over which Tenant or any of Tenant’s Representatives has control and/or for which Tenant or any of Tenants Representatives are legally responsible for, to cause such Hazardous Materials to be present in, on, under, through or
about any portion of the Premises, the Building or the Park, or does not take all reasonably appropriate actions to prevent such persons over which Tenant or any of Tenant’s Representatives has control and/or for which Tenant or any of
Tenant’s Representatives are legally 
  

 32 

 
responsible from causing the presence of Hazardous Materials in, on, under, through or about any portion of the Premises, the Building or the Park.

  
 28. Financial Statements. Unless the common stock of
Tenant or a permitted Transferee shall be publicly traded on a nationally recognized exchange, Tenant and any permitted Transferee, for the reliance of Landlord, any lender holding or anticipated to acquire a lien upon any portion of the Project or
any prospective purchaser of any portion of the Project within ten (10) business days after Landlord’s request therefor, but not more often than once annually so long as Tenant is not in material default of this Lease, shall deliver to Landlord
the then current audited financial statements of Tenant (including interim periods following the end of the last fiscal year for which annual statements are available). If audited financial statements have not been prepared, Tenant and any permitted
Transferee shall provide Landlord with unaudited financial statements and such other information, the type and form of which are acceptable to Landlord in Landlord’s reasonable discretion, which reflects the financial condition of Tenant and
any permitted Transferee. 
  
 29. General Provisions

  
 29.1 Time: Time is of the essence in this Lease
and with respect to each and all of its provisions in which performance is a factor. 
  
 29.2 Successors and Assigns: The covenants and conditions herein contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the
parties hereto. 
  
 29.3 Recordation: Tenant shall not
record this Lease or a short form memorandum hereof. 
  
 29.4
Landlord Exculpation: The liability of landlord to Tenant for any default by Landlord under the terms of this Lease shall be limited to the actual interest of Landlord and its present or future partners or members in the Building, and Tenant
agrees to look solely to Landlord’s interest in the Building for satisfaction of any liability and shall not look to other assets of Landlord nor seek any recourse against the assets of the individual partners, members, directors, officers,
shareholders, agents or employees of Landlord, including without limitation, any property management company of Landlord (collectively, the “Landlord Parties”). It is the parties’ intention that Landlord and the Landlord Parties shall
not in any event or circumstance be personally liable, in any manner whatsoever, for any judgment or deficiency hereunder or with respect to this Lease. The liability of Landlord under this Lease is limited to its actual period of ownership of title
to the Building. 
  
 29.5 Severability and Governing Law:
Any provisions of this lease which shall prove to be invalid, void or illegal shall in no way affect, impair or invalidate any other provisions hereof and such other provision shall remain in full force and effect. This Lease shall be governed by,
and construed in accordance with, the laws of the State of California. 
  
 29.6 Attorneys’ Fees: In the event any dispute between the parties results in litigation or other proceeding, the prevailing party shall be reimbursed by the party not prevailing for 
  

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all reasonable costs and expenses, including, without limitation, reasonable attorneys’ and experts’ fees and costs incurred by the prevailing
party in connection with such litigation or other proceeding, and any appeal thereof. Such costs, expenses and fees shall be included in and made a part of the judgment recovered by the prevailing party, if any. 
  
 29.7 Entire Agreement: It is understood and acknowledged that there
are no oral agreements between the parties hereto affecting this Lease and this Lease supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements and understandings, if any, between the parties hereto or displayed
by landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease. This Lease and any side letter or separate agreement executed by Landlord and Tenant in connection with this Lease
and dated of even date herewith contain all of the terms, covenants, conditions, warranties and agreements of the parties relating in any manner to the rental, use and occupancy of the Premises, shall be considered to be the only agreement between
the parties hereto and their representatives and agents, and none of the terms, covenants, conditions or provisions of this Lease can be modified, deleted or added to except in writing signed by the parties hereto. All negotiations and oral
agreements acceptable to both parties have been merged into and are included herein. There are no other representations or warranties between the parties, and all reliance with respect to representations is based totally upon the representations and
agreements contained in this Lease. The parties acknowledge that (i) each party and/or its counsel have reviewed and revised this Lease, and (ii) no rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall be employed in the interpretation or enforcement of this Lease or any amendments or exhibits to this Lease or any document executed and delivered by either party in connection with this Lease. 
  
 29.8 Warranty of Authority: On the date that Tenant executes this
Lease, Tenant shall deliver to Landlord an original certificate of status for Tenant issued by the California Secretary of State or statement of partnership for Tenant recorded in the county in which the Premises are located, as applicable, and such
other documents as Landlord may reasonably request with regard to the lawful existence of Tenant. Each person executing this Lease on behalf of a party represents and warrants that (1) such person is duly and validly authorized to do so on behalf of
the entity it purports to so bind, and (2) if such party is a partnership, corporation or trustee, that such partnership, corporation or trustee has full right and authority to enter into this Lease and perform all of its obligations hereunder.
Tenant hereby warrants that this Lease is legal, valid and binding upon Tenant and enforceable against Tenant in accordance with its terms. 
  
 29.9 Notices: All notices, demands, statements or communications (collectively, “Notices”) given or required to be given by either party
to the other hereunder shall be in writing, shall be sent by United States certified or registered mall, postage prepaid, return receipt requested, or delivered personally (i) to Tenant at the Tenant’s Address set forth in the Basic Lease
Information, or to such other place as Tenant may from time to time designate in a Notice to Landlord; or (ii) to Landlord at Landlord’s Address set forth in the Basic Lease Information, or to such other firm or to such other place as Landlord
may from time to time designate in a Notice to Tenant. Any Notice will be deemed given on the date it is mailed as provided in this Section 29.9 or upon the date personal delivery is made. 
  

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 29.10 Joint and Several; Covenants and Conditions: If Tenant consists of more than one person or
entity, the obligations of all such persons or entities shall be joint and several. Each provision to be performed by Tenant hereunder shall be deemed to be both a covenant and a condition. 
  
 29.11 Confidentiality: Tenant acknowledges that the content of this
Lease and any related documents are confidential information. Tenant shall keep and maintain such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other than Tenant’s
financial, legal and space planning consultants. 
  
 29.12
Landlord Renovations: Tenant acknowledges that Landlord may from time to time, at Landlord’s sole option, renovate, improve, develop, alter, or modify (collectively, the “Renovations”) portions of the Building, Premises, Common
Areas and the Project, including without limitation, systems and equipment, roof, and structural portions of the same. In connection with such Renovations, Landlord may, among other things, erect scaffolding or other necessary structures in the
Building, limit or eliminate access to portions of the Project, including portions of the Common Areas, or perform work in the Building, which work may create noise, dust or leave debris in the Building. Tenant hereby agrees that such Renovations
and Landlord’s actions in connection with such Renovations shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of Rent; provided, Landlord shall use commercially reasonable efforts to minimize
interference with Tenant’s ability to access and use the Premises. Except to the extent of Landlord’s gross negligence or willful misconduct, Landlord shall have no responsibility, or for any reason be liable to Tenant, for any direct or
indirect injury to or interference with Tenant’s business arising from the Renovations, nor shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant’s
Property, Alterations or improvements resulting from the Renovations or Landlord’s actions in connection with such Renovations, or for any inconvenience or annoyance occasioned by such Renovations or Landlord’s actions in connection with
such Renovations. 
  
 29.13 Waiver of Jury Trial: The
parties hereto shall and they hereby do waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on any matters whatsoever arising out of or in any way related to this Lease, the
relationship of Landlord and Tenant, Tenant’s use or occupancy of the Premises, the Building or the Park, and/or any claim of injury, loss or damage. 
  
 29.14 Submission of Lease: Submission of this instrument for examination or signature by Tenant does not constitute a reservation of or an option
for lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord and Tenant. 
  
 30. Signs. All signs and graphics of every kind visible in or from public view or corridors or the exterior of the Premises shall be subject to
Landlord’s prior written approval (which approval shall not be unreasonably withheld, conditioned or delayed) and shall be subject to and in compliance with all applicable Laws, Development Documents, Recorded Matters, Rules and Regulations,
and Landlord’s sign criteria as same may exist from time to time or as set forth in Exhibit G hereto. Tenant shall remove all such signs and graphics prior to the expiration or earlier termination of this Lease. Such installations and
removals shall be made in a manner as to avoid 
  

 35 

 
damage or defacement of the Premises. Tenant shall repair any damage or defacement, including without limitation, discoloration caused by such installation
or removal. Landlord shall have the right, at its option, to deduct from the Security Deposit such sums as are reasonably necessary to remove such signs and make any repairs necessitated by such removal. Notwithstanding the foregoing, in no event
shall any: (a) neon, flashing or moving sign(s) or (b) sign(s) which are likely to interfere with the visibility of any sign, canopy, advertising matter, or decoration of any kind of any other business or occupant of the Building or the other
portions of the Project be permitted hereunder. Tenant further agrees to maintain each such sign and graphics, as may be approved, in good condition and repair at all times. 
  
 31. Mortgagee Protection. Upon any default on the part of Landlord, Tenant will give written Notice by registered or
certified mail to any beneficiary of a deed of trust or mortgagee of a mortgage covering the Premises who has provided Tenant with notice of their interest together with an address for receiving Notice, and shall offer such beneficiary or mortgagee
a reasonable opportunity to cure the default, including time to obtain possession of the Premises by power of sale or a judicial foreclosure, if such should prove necessary to effect a cure. If such default cannot be cured within such time period,
then such additional time as may be necessary will be given to such beneficiary or mortgagee to effect such cure so long as such beneficiary or mortgagee has commenced the cure within the original time period and thereafter diligently pursues such
cure to completion, in which event this Lease shall not be terminated while such cure is being diligently pursued. Tenant agrees that each lender to whom this Lease has been assigned by Landlord is an express third party beneficiary hereof. Tenant
shall not make any prepayment of Rent more than one (1) month in advance without the prior written consent of each such lender. Tenant waives the collection of any deposit from such lender(s) or any purchaser at a foreclosure sale of such
lender(s)’ deed of trust unless the lender(s) or such purchaser shall have actually received and not refunded the deposit. Tenant agrees to make all payments under this Lease to the lender with the most senior encumbrance upon receiving a
direction, in writing, to pay said amounts to such lender. Tenant shall comply with such written direction to pay without determining whether an event of default exists under such lender’s loan to Landlord. Landlord expressly consents, to
payments made by Tenant in strict accordance with the two immediately preceding sentences and hereby waives any Claims against Tenant arising from payments made in strict accordance therewith. Landlord agrees that all such payments by Tenant shall
be applied to Tenant’s obligations under this Lease. If, in connection with obtaining financing for the Premises or any other portion of the Project, Landlord’s lender shall request reasonable modification(s) to this Lease as a condition
to such financing, Tenant shall not unreasonably withhold, delay or defer its consent thereto, provided such modifications do not materially and adversely affect Tenant’s rights hereunder or the use, occupancy or quiet enjoyment of Tenant
hereunder. 
  
 32. Warranties of Tenant. Tenant hereby
warrants and represents to Landlord, for the express benefit of Landlord, that Tenant has had the opportunity to undertake a complete and independent evaluation of the risks inherent in the execution of this Lease and the operation of the Premises
for the use permitted hereby, and that Tenant has nevertheless elected to enter into this Lease. Tenant hereby further warrants and represents to Landlord, for the express benefit of Landlord, that in entering into this Lease, Tenant has not relied
upon any statement, fact, promise or representation (whether express or implied, written or oral) not specifically set forth herein in 
  

 36 

 
writing and that any statement, fact, promise or representation (whether express or implied, written or oral) made at any time to Tenant, which is not
expressly incorporated herein in writing, is hereby waived by Tenant. 
  
 33. Brokerage Commission. Landlord and Tenant each represents and warrants for the benefit of the other that it has had no dealings with any real estate broker, agent or finder in connection with the Premises and/or the negotiation
of this Lease, except for the Broker(s) specified in the Basic Lease Information, and that it knows of no other real estate broker, agent or finder who is or might be entitled to a real estate brokerage commission or finder’s fee in connection
with this Lease or otherwise based upon contacts between the claimant and Tenant. Each party shall indemnify and hold harmless the other from and against any and all liabilities or expenses arising out of claims made for a fee or commission by any
real estate broker, agent or finder in connection with the Premises and this Lease other than Brokers), if any, resulting from the actions of the indemnifying party. Unless expressly agreed to in writing by Landlord and Broker(s), no real estate
brokerage commission or finder’s fee shall be owed to, or otherwise payable to, the Broker(s) for any renewals or other extensions of the Initial Term of this Lease or for any additional space leased by Tenant other than the Premises as same
exists as of the Lease Date. Tenant further represents and warrants to Landlord that Tenant will not receive (i) any portion of any brokerage commission or finder’s fee payable to the Broker(s) in connection with this Lease or (ii) any other
form of compensation or incentive from the Broker(s) with respect to this Lease. 
  
 34. Quiet Enjoyment. Landlord covenants with Tenant, upon the paying of Rent and observing and keeping the covenants, agreements and conditions of this Lease on its part to be kept, and during the periods that
Tenant is not otherwise in default of any of the terms or provisions of this Lease beyond the expiration of any applicable notice and cure periods, and subject to the rights of any of Landlord’s lenders, (i) that Tenant shall and may peaceably
and quietly have, hold, occupy and enjoy the Premises and the Common Areas during the Term of this Lease, and (ii) neither Landlord, nor any successor or assign of Landlord, shall disturb Tenant’s occupancy or enjoyment of the Premises and the
Common Areas. The foregoing covenant is in lieu of any other covenant express or implied. 
  
 35. ERISA Matters 
  
 35.1 Tenant acknowledges that it has been advised that one of the constituent shareholders, partners and/or members of Landlord is a collective investment fund (the “Fund”) which holds the assets of one or more employee
benefit plans or retirement arrangements which are subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and/or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”)
(each a “Plan”), and with respect to which JPMorgan Chase Bank (“JPMCB”) is the Trustee and that, as a result, Landlord may be prohibited by law from engaging in certain transactions. 
  
 35.2 Landlord hereby represents and warrants to Tenant that, as of the
date hereof, the only Plans whose assets are invested in the Fund which, together with the interests of any other Plans maintained by the same employer or employee organization, represent a collective interest in the Fund in excess of ten percent
(10%) of the total interests in the Fund (each, a “10% Plan”) are referenced on Schedule      (collectively, the “Existing 10% Plans”) hereto. 
  

 37 

 35.3 Tenant represents and warrants that as of the date hereof, and at all times while it is a
Tenant under this Lease, one of the following statements is, and will continue to be, true: (1) Tenant is not a “party in interest” (as defined in Section 3(14) of ERISA) or a “disqualified person” (as defined in Section 4975 of
the Code) (each a “Party in Interest”) with respect to the Existing 10% Plans or, (2) if Tenant is a Party in interest, that: 
  
 35.3.1 Neither Tenant nor its “affiliate” (as defined in Section V(c) of PTCE 84-14, “Affiliate”) has, or during the
immediately preceding one (1) year has, exercised the authority to either: (i) appoint or terminate JPMCB as the qualified professional asset manager (as defined in Section V(a) of PTCE 84-14, “QPAM”) of any of the assets of the Existing
10% Plan with respect to which Tenant or its Affiliate is a Party in Interest; or (ii) negotiate the terms of the management agreement with JPMCB, including renewals or modifications thereof, on behalf of the Existing 10% Plan; and

  
 35.3.2 Neither Tenant nor any entity controlling, or
controlled by, Tenant owns a five percent (5%) or more interest (within the meaning of PTCE 84-14, “5% Interest”) in J.P. Morgan Chase & Co. 
  
 35.4 If Landlord or the fund notifies Tenant in writing that a Plan other than the Existing 10% Plan may become a 10% Plan, Tenant will, within 10
days of such notification, inform the Fund in writing as to whether it can make the same representations which it made in subsection (c) of this Section with respect to such prospective 10% Plan. Thereafter, if based on such representations made by
Tenant such Plan becomes a 10% Plan, Tenant represents and warrants that, at all times during the period Tenant is a tenant under the Lease, one of the statements set forth in subsection (c) will be true with respect to such 10% Plan. 
  
 35.5 In the event that Tenant becomes aware that any statement in
subparagraph (c) is no longer true with respect to a 10% Plan, Tenant will immediately notify Landlord, and Tenant will cooperate with Landlord and/or the Fund in its efforts to take whatever action is necessary under ERISA to rectify the situation.

  
 36. Tenant’s Ability to Perform Landlord’s
Unperformed Obligations. Notwithstanding anything to the contrary contained in this Lease, if Landlord shall fail to perform any of the terms, provisions, covenants or conditions to be performed or complied with by Landlord under Section 11.2 of
this Lease with respect only to the Premises (such terms, provisions, covenants or conditions are referred to herein, collectively as “Landlord Repair Obligations”) after expiration of all applicable notice and cure periods for
Landlord’s and any mortgagee’s benefit as set forth in Sections 21 and 31, respectively, then Tenant may, at Tenant’s option and risk, but without any obligation to do so, after delivery of an additional twenty (20) day prior written
notice to Landlord, perform such Landlord Repair Obligations on Landlord’s behalf. If Tenant so performs any of such Landlord Repair Obligations hereunder, then Tenant will perform such Landlord Repair Obligations (1) in compliance with all
applicable Laws, regulations and requirements to which Landlord would be subject under this Lease (if Landlord were performing such Landlord Repair Obligations), (2) in a good workmanlike manner using materials of a quality and grade at least equal
to that in place as of the date of delivery of the Premises to Tenant, if applicable, (3) without interfering with the rights of other tenants of the Park, and (4) in compliance with the terms and provisions of Section 10.1 hereof, 
  

 38 

 
as applicable. Tenant will promptly assign to Landlord any warranties or guaranties in respect of any Landlord Repair Obligations. If Tenant so performs any
of such Landlord Repair Obligations hereunder, the full amount of the fair and reasonable costs and expenses incurred by Tenant shall be owing by Landlord to Tenant, and Landlord shall pay to Tenant the full undisputed amount thereof within sixty
(60) days of Landlord’s receipt of Tenant’s written demand therefor together with reasonable evidence verifying the amount of such costs and expenses. 
  

IN WITNESS WHEREOF, this Lease is executed by the parties as of the Lease Date referenced on Page 1 of this Lease. 
  
 TENANT: 
  

	 ALPHASMART INC.,

	 a California corporation

		
	 By:
	 	 /s/ JAMES M WALKER

	 Its:
	 	 CFO

	 Date:
	 	 2/25/03

		
	 By:
	 	 KETAN D KOTHARI

	 Its:
	 	 CEO

	 Date:
	 	 2/25/03

	
	 LANDLORD:

	
	 MILPITAS INDUSTRIAL PROPERTIES, INC.,

	 a Delaware corporation

		
	 By:
	 	 /s/ JENNIFER
[            ] ROBERTSON

	 Its:
	 	 VICE PRESIDENT

	 Date:
	 	 3/5/03

  
 If Tenant is a CORPORATION, the
authorized officers must sign on behalf of the corporation and indicate the capacity in which they are signing. The Lease must be executed by the president or vice-president and the secretary or assistant secretary, unless the bylaws
or a resolution of the board of directors shall otherwise provide, in which event, the bylaws or a certified copy of the resolution, as the case may be, must be attached to this Lease. 
  

 39 

 [12/18/02] 
 [For Entities Owned by Special Situation Property Fund] 
  
 Schedule      
  
 Existing 10% Plans Referenced in Section [    ] ERISA Matters 
  

	(1)	 	BellSouth Pension Plan 

  

	(2)	 	BellSouth Personal Retirement Account Pension Plan as adopted by BellSouth Corporation 

  

	(3)	 	General Motors Hourly-Rate Employees Pension Plan 

  

	(4)	 	General Motors Retirement Program for Salaried Employees 

  

 1 

 LEGACY PARTNERS 
 BID/COST SUMMARY 
  

	 Alphasmart TI
	  	 
 	TENANT CM
FEE	  	JOB CODING	  	 
 	DATE:
REVISED:	  	  
  
	 13-Feb-03
 24-Feb-02

	 Fremont Industrial Prk
	  	 	5%	  	 	 	  	 	 	  	  
	 4851 Warm Springs Blvd, Suite 501A, Building ‘B’
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
			
	 CLARIFICATION’S TO DEFINED SCOPE OF WORK, UNIT PRICES, ALLOWANCES, ETC.:
	  	 	 	  	 	 
	 TENANT IMPROVEMENT PRICING PLAN PREPARED BY LPC CDS, INC. INCLUDES 20’ X
20’ LUNCH ROOM WITH NEW HVAC.
  
	  	 	 	  	 	 
	 	  	 	  	EXPANDED LUNCH ROOM

	  	 ALPHA SMART
 SC BUILDERS

	  	 VACANCY
 SC BUILDERS

	  	 
	 COST CODE

	  	 COST BREAKDOWN

	  	SO BAY

	  	SC BUILDERS

	  	  	  	 
	 	  	GENERAL REQUIREMENTS, INSURANCE	  	$	25,080	  	$	10,880	  	$	10,880	  	 	 	  	 	 
	 	  	JANITORIAL	  	 	 	  	$	350	  	$	350	  	 	 	  	 	 
	 	  	CONCRETE	  	$	2,160	  	 	INCL	  	 	INCL	  	 	 	  	 	 
	 	  	CARPENTRY/MILLWORK	  	$	4,450	  	$	3,308	  	$	3,308	  	 	 	  	 	 
	 	  	INSULATION	  	$	18,278	  	$	14,550	  	$	14,550	  	 	 	  	 	 
	 	  	DOORS/FRAMES/HARDWARE	  	$	750	  	$	1,050	  	$	1,050	  	 	 	  	 	 
	 	  	FRAMING/DRYWALL	  	$	28,066	  	$	26,800	  	$	14,515	  	$	12,285	  	 	 
	 	  	ACOUSTICAL CEILING	  	$	1,380	  	$	740	  	$	740	  	 	 	  	 	 
	 	  	FLOOR COVERING	  	$	1,010	  	$	500	  	$	500	  	 	 	  	 	 
	 	  	PAINTING	  	$	3,926	  	$	3,770	  	$	3,770	  	 	 	  	 	 
	 	  	PLUMBING	  	$	4,000	  	$	3,400	  	$	3,400	  	 	 	  	 	 
	 	  	H.V.A.C.	  	$	6,880	  	$	1,500	  	$	1,500	  	 	 	  	 	 
	 	  	FIRE SPRINKLERS	  	$	2,660	  	$	2,000	  	$	2,000	  	 	 	  	 	 
	 	  	ELECTRICAL	  	$	10,850	  	$	6,190	  	$	6,190	  	 	 	  	 	 
	 	  	FIRE EXTINGUISHERS	  	$	84	  	 	INCL	  	 	INCL	  	 	 	  	 	 
							
	 	  	EXPANDED LUNCH ROOM WITH 2 TN UNIT	  	 	 	  	$	13,100	  	$	13,100	  	 	 	  	 	 
							
	 	  	OVERHEAD/PROFIT	  	 	 	  	$	7,651	  	$	7,651	  	 	 	  	 	 
	 14100.01005
	  	TOTAL BASE BID	  	$	109,574	  	$	95,789	  	$	83,504	  	$	12,285	  	$	0
	 14300.45110
	  	LPC CONSTRUCTION MANAGEMENT FEE	  	$	5,479	  	$	4,789	  	$	4,175	  	$	614	  	$	0
	 	  	TOTAL CONSTRUCTION COST	  	$	115,053	  	$	100,578	  	$	87,679	  	$	12,899	  	$	0
	 	  	SOFT COSTS	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	 14300.41010
	  	DESIGN COSTS	  	$	2,300	  	$	2,301	  	$	2,301	  	 	 	  	 	 
	 1.1010  
	  	STRUCTURAL ENGINEERING	  	 	NIC	  	 	NIC	  	$	1,000	  	 	 	  	 	 
	 	  	T-24 CALCULATIONS	  	 	INCL	  	 	INCL	  	 	INCL	  	 	 	  	 	 
	 14300.41260
	  	SPECIAL INSPECTIONS ALLOWANCE	  	 	NA	  	 	NA	  	 	NA	  	 	 	  	 	 
	 14300.41130
	  	REIMBURSABLES ALLOWANCE	  	$	400	  	$	400	  	$	400	  	 	 	  	 	 
	 14300.42090
	  	PERMIT ALLOWANCES	  	$	2,700	  	$	2,700	  	$	2,700	  	 	 	  	 	 
	 14300.49010
	  	PROJECT CONTINGENCY	  	$	8,500	  	$	8,500	  	$	8,500	  	$	5,000	  	 	 
	 14300.42310
	  	UTILITIES ALLOWANCE	  	 	NA	  	 	NA	  	 	NA	  	 	 	  	 	 
	 	  	TOTAL BID WITH SOFT COSTS	  	$	128,953	  	$	114,479	  	$	102,580	  	$	17,899	  	$	0
	 	  	ALTERNATES	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	 	  	ELECTRICAL - 200A HIGH VOLTAGE FOR VACANT SPACE	  	 	DID NOT BID	  	$	11,996	  	$	5,998	  	$	5,998	  	 	 
	 	  	ADD CONDUIT FROM ELECTRICAL ROOM (IF REQUIRED)	  	 	DID NOT BID	  	 	NOT INCL.	  	$	2,634	  	$	2,634	  	 	 
	 	  	ADD FOR LOW VOLTAGE PANEL IN VACANT SPACE	  	 	DID NOT BID	  	 	NOT INCL.	  	$	1,438	  	$	1,438	  	 	 
							
	 	  	OVERHEAD/PROFIT	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	 14100.01005
	  	TOTAL COST OF ALTERNATES/POST BID CHANGES	  	$	0	  	$	11,996	  	$	10,069	  	$	10,069	  	$	0
	 14300.45110
	  	CM FEE ON ALTERNATES/POST BID CHANGES	  	$	0	  	$	600	  	$	503	  	$	503	  	$	0
	 	  	TOTAL ALTERNATE/POST BID CHANGES COST	  	$	0	  	$	12,596	  	$	10,572	  	$	10,572	  	$	0
	 	  	TOTAL PROJECT COSTS WITH ALTERNATES AND POST BID CHANGES	  	$	128,953	  	$	127,075	  	$	113,153	  	$	28,472	  	$	0
							
	 	  	MISC.	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
							
	 	  	SQUARE FEET:	  	 	20798	  	 	20798	  	 	20797	  	 	20798	  	 	20798
	 	  	COST PSF.	  	$	6.20	  	$	6.11	  	$	5.44	  	$	1.37	  	$	0.00
	 	  	ESTIMATED CALENDAR DAYS	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
							
	 	  	CURRENT PROJECT COSTS	  	$	128,953	  	$	127,075	  	$	113,153	  	$	28,472	  	$	0
	 	  	LPC T1 ALLOWANCE	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	 	  	CHARGE BACKS	  	$	0.00	  	$	0.00	  	$	0.00	  	$	0.00	  	$	0.00
	 	  	TOTAL EXCESS T1 DUE FROM TENANT	  	$	128,953	  	$	127,075.25	  	$	113,153	  	$	28,472	  	$	0
	 	  	AMORTIZATION (Pending Tenant Approval)	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	 	  	TOTAL EXCESS T1 DUE IF TENANT AMORTIZES	  	$	128,953	  	$	127,075	  	$	113,153	  	$	28,472	  	$	0

  

	 	    	START DATE:
                                      	  	COMPLETION DATE:                               
 
	 WORKING DRAWINGS APPROVAL
	    	                                      
                                 	  	                             DATE:        
                        
	 THESE BIDS ARE REVIEWED BY: (ARCHITECT)
	    	                                      
                                 	  	                             DATE:        
                        
	 CONSTRUCTION IS AWARDED TO:
	    	                                      
                                 	  	                             DATE:        
                        
	 CONSTRUCTION MANAGER:
	    	                                      
                                 	  	                             DATE:        
                        
	 REGIONAL/PORTFOLIO V.P.:
	    	                                      
                                 	  	                             DATE:        
                        
	 TENANT:
	    	                                      
                                 	  	                             DATE:        
                        
	 ASSET MANAGER APPROVAL:
	    	                                      
                                 	  	                             DATE:        
                        

 Distribution: CM, Orig. to Project File, PM, SP, Const/Dev Accting., Contract Admin., Asset Manager

 [Insert Graphic] 

 [12/18/02] 
 [For Entities Owned by Strategic Property Fund] 
  
 Schedule      
  
 Existing 10% Plans Referenced in Section [    ] ERISA Matters 
  
 None 

 Exhibit A to Lease Agreement 
 Premises, Building, Lot and/or Park 
  
 [Graphic] 
  

 Exhibit A, Page 1 

 Exhibit B to Lease Agreement 
 Tenant Improvements 
  
 This exhibit, entitled “Tenant Improvements”, is and shall constitute Exhibit B to that certain Lease Agreement dated February 24, 2003 (the “Lease”), by and between MILPITAS INDUSTRIAL
PROPERTIES, INC., a Delaware corporation (“Landlord”), and ALPHASMART INC., a California corporation (“Tenant”), for the leasing of certain premises located at 48541 Warm Springs Boulevard, Suite 501, Fremont, California (the
“Premises”). The terms, conditions and provisions of this Exhibit B are hereby incorporated into and are made a part of the Lease. Any capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to
such terms as set forth in the Lease. 
  
 1. Tenant
Improvements. Subject to the conditions set forth below, Landlord agrees to construct and install certain improvements (“Tenant Improvements”) in the Building of which the Premises are a part in accordance with the Approved Final
Drawings (defined below) and pursuant to the terms of this Exhibit B. 
  
 2. Definition. “Tenant Improvements” as used in this Lease shall include only those interior improvements to be made to the Premises as specified in the Approved Final Drawings (defined below)
and agreed to by Tenant and Landlord in accordance with the provisions hereof. “Tenant improvements” shall specifically not include (i) any alterations, additions or improvements installed or constructed by Tenant, (ii) any of
Tenant’s trade fixtures, racking, security equipment, equipment, furniture, furnishings, telephone and/or data equipment, telephone and/or data lines or other personal property, and (iii) any supplemental fire protection improvements or
equipment, including without limitation, in-rack fire sprinklers, hose racks, reels, smoke vents, and draft curtains (collectively, “Tenant’s Installations”). 
  
 3. Tenant’s Initial Plans; the Work. Tenant desires Landlord to perform certain Tenant Improvements in
the Premises. The Tenant Improvements shall be in substantial accordance with the plan(s) and scope of work (collectively, the “Initial Plans”) which will be prepared by Landlord’s architect after the parties meet and confer to agree
upon a scope of work immediately after execution of this Lease. Within fifteen (15) business days from the date Landlord and Tenant meet to discuss the scope of work, Landlord shall deliver to Tenant the Initial Plans. A copy of the Initial Plans
shall be attached hereto as Schedule 1, as soon as practicable thereafter. Such work, as shown in the Initial Plans and as more fully detailed in the Approved Final Drawings (as defined and described in Section 4 below), shall be hereinafter
referred to as the “Work”. Not later than five (5) days after the Initial Plans are prepared and delivered to Tenant, Tenant or Tenant’s Representatives shall furnish to Landlord such additional plans, drawings, specifications and
finish details as Landlord may reasonably request to enable Landlord’s architects and engineers, as applicable, to prepare mechanical, electrical and plumbing plans and to prepare the Final Drawings, including, but not limited to, a final
telephone layout and special electrical connections, if any. All plans, drawings, specifications and other details describing the Work which have been, or are hereafter, furnished by or on behalf of Tenant shall be subject to Landlord’s
approval, which approval shall not be unreasonably withheld. Landlord shall not be deemed to have acted unreasonably if it withholds its approval of any plans, specifications, drawings or other details or of any Change Request (hereafter defined in
Section 11 below) because, in Landlord’s reasonable opinion, the work as 
  

 Exhibit B, Page 1 

 
described in any such item, or any Change Request, as the case may be: (a) is likely to adversely affect Building systems, the structure of the Building or
the safety of the Building or its occupants; (b) might impair Landlord’s ability to furnish services to Tenant or other tenants in the Building; (c) would increase the cost of operating the Building or the Park; (d) would violate any applicable
governmental, administrative body’s or agencies’ laws, rules, regulations, ordinances, codes or similar requirements (or interpretations thereof); (e) contains or uses Hazardous Materials; (f) would adversely affect the appearance of the
Building or the Park; (g) might adversely affect another tenant’s premises or such other tenant’s use and enjoyment of such premises, (h) is prohibited by any ground lease affecting the Building, the Lot and/or the Park, any Recorded
Matters or any mortgage, trust deed or other Instrument encumbering the Building, the Lot and/or the Park; (i) is likely to be substantially delayed because of unavailability or shortage of labor or materials necessary to perform such work or the
difficulties or unusual nature of such work; (j) is not, at a minimum, in accordance with Landlord’s Building Standards (defined below); or (k) would increase the Tenant Improvement Costs (defined in Section 9 below) by more than ten percent
(10%) from the cost originally estimated and anticipated by the parties. The foregoing reasons, however, shall not be the only reasons for which Landlord may withhold its approval, whether or not such other reasons are similar or dissimilar to the
foregoing. Neither the approval by Landlord of the Work or the Initial Plans or any other plans, specifications, drawings or other items associated with the Work nor Landlord’s performance, supervision or monitoring of the Work shall constitute
any warranty or covenant by Landlord to Tenant of the adequacy of the design for Tenant’s intended use of the Premises. Tenant agrees to, and does hereby, assume full and complete responsibility to ensure that the Work and the Approved Final
Drawings are adequate to fully meet the needs and requirements of Tenant’s intended operations of its business within the Premises and Tenant’s use of the Premises. 
  
 4. Final Drawings and Approved Final Drawings. If necessary for the performance of the Work, and to the extent
not already included as part of the Initial Plans attached hereto, Landlord shall prepare or cause to be prepared final working drawings and specifications for the Work (the “Final Drawings”) based on and consistent with the Initial Plans
and the other plans, specifications, drawings, finish details or other Information furnished by Tenant or Tenant’s Representatives to Landlord and approved by Landlord pursuant to Section 3 above. Tenant shall cooperate diligently with Landlord
and Landlord’s architect, engineer and other representatives and Tenant shall furnish within five (5) days after any request therefor, all information required by Landlord or Landlord’s architect, engineer or other representatives for
completion of the Final Drawings. So long as the Final Drawings are substantially consistent with the Initial Plans, Tenant shall approve the Final Drawings within five (5) days after receipt of same from Landlord. Tenant’s failure to approve
or disapprove such Final Drawings within the foregoing five (5) day time period, shall be conclusively deemed to be approval of same by Tenant. If Tenant reasonably disapproves of any matters included in the Final Drawings because such items are not
substantially consistent with the Initial Plans, Tenant shall, within the aforementioned five (5) day period, deliver to Landlord written notice of its disapproval and Tenant shall specify in such written notice, in sufficient detail as Landlord may
reasonably require, the matters disapproved, the reasons for such disapproval, and the specific changes or revisions necessary to be made to the Final Drawings to cause such drawings to substantially conform to the Initial Plans. Any additional
costs associated with such requested changes or revisions shall be included as part of the Tenant Improvement Costs (defined below). The foregoing procedure shall be followed by the parties until the Final Drawings 
  

 Exhibit B, Page 2 

 
are acceptable to both Landlord and Tenant. Landlord and Tenant shall indicate their approval of the Final Drawings by initialing each sheet of the Final
Drawings and delivering to one another a true and complete copy of such initialed Final Drawings (the “Approved Final Drawings”). A true and complete copy of the Approved Final Drawings shall be attached to the Lease as Exhibit B-1
and shall be made a part thereof. Any changes or revisions to the Approved Final Drawings requested by Tenant must first be approved by Landlord, which approval shall not be unreasonably withheld, subject to the provisions of Section 3 above. If
Landlord approves such requested changes or revisions, Landlord shall cause the Approved Final Drawings to be revised accordingly and Landlord and Tenant shall initial each sheet of the Approved Final Drawings as revised and replace and attach a
true and complete copy thereof to the Lease as Exhibit B-1. Landlord and Tenant hereby covenant to each other to cooperate with each other and to act reasonably in the preparation and approval of the Final Drawings and the Approved Final
Drawings. 
  
 5. Performance of Work. As soon as
practicable after Tenant and Landlord initial and attach to the Lease as Exhibit B-1 a true and complete copy of the Approved Final Drawings, Landlord shall submit the Approved Final Drawings to the governmental authorities having rights of
approval over the Work and shall apply for the necessary approvals and building permits. Subject to the satisfaction of all conditions precedent and subsequent to its obligations under this Exhibit B and further subject to the provisions of
Section 10 hereof, as soon as practicable after Landlord or its representatives have received all necessary approvals and building permits, Landlord will put the Approved Final Drawings out for bid to several licensed, bonded and insured general
contractors. The Tenant Improvements shall be constructed by a general contractor selected by Landlord (the “General Contractor”). Landlord shall commence construction, or cause the commencement of construction by the General Contractor,
of the Tenant Improvements, as soon as practicable after selection of the General Contractor. Except as hereinafter expressly provided to the contrary, Landlord shall cause the performance of the Work using (except as may be stated or otherwise
shown in the Approved Final Drawings) building standard materials, quantities and procedures then in use by Landlord (“Building Standards”). 
  
 6. Substantial Completion. Landlord and Tenant shall cause the General Contractor to Substantially Complete (defined below) the Tenant
Improvements in accordance with the Approved Final Drawings by the Commencement Date of the Lease as set forth in Section 2 of the Lease (the “Completion Date”). None of the Rent Commencement Date, Commencement Date, Expiration Date or
dates for Adjustments to Base Rent shall be affected by any matter or in any way whatsoever, including without limitation, delays due to (a) acts or events beyond its control including, but not limited to, acts of God, earthquakes, strikes,
lockouts, boycotts, casualties, discontinuance of any utility or other service required for performance of the Work, moratoriums, governmental agencies, delays on the part of governmental agencies and weather, (b) the lack of availability or
shortage of specialized materials used in the construction of the Tenant Improvements, (c) any matters beyond the control of Landlord, the General Contractor or any subcontractors, (d) any changes required by the fire department, building and/or
planning department, building inspectors or any other agency having jurisdiction over the Building, the Work and/or the Tenant Improvements (except to the extent such changes are directly attributable to Tenant’s use or Tenant’s
specialized tenant improvements, in which event such delays are considered Tenant Delays) (the events and matters set forth in Subsections (a), (b), (c) and (d) are collectively 
  

 Exhibit B, Page 3 

 
referred to as “Force Majeure Delays”), or (e) any Tenant Delays (defined in Section 7 below). The Tenant Improvements shall be deemed
substantially complete on the date that the General Contractor issues to Landlord a notice of substantial completion, or the date that the building officials of the applicable governmental agency(s) issues its final approval of the construction of
the Tenant Improvements whether in the form of the issuance of a final permit, certificate of occupancy or the written approval evidencing its final inspection on the building permit(s), or the date on which Tenant first takes occupancy of the
Premises, whichever first occurs (“Substantial Completion”, or “Substantially Completed”, or “Substantially Complete”). Tenant hereby acknowledges and agrees that the term “Substantial Completion” of the
Tenant Improvements as used herein will not include the completion of any work associated with Tenant’s Installations, including without limitation, Tenant’s high-pile storage requirements, Tenant’s racking systems, and work
related to any requirements of governmental and regulatory agencies with respect to any of Tenant’s Installations. If the Work is not deemed to be Substantially Completed on or before the scheduled Completion Date, (i) Landlord agrees to use
reasonable efforts to Substantially Complete the Work as soon as practicable thereafter, (ii) the Lease shall remain in full force and effect, (iii) Landlord shall not be deemed to be in breach or default of the Lease or this Exhibit B as a
result thereof and Landlord shall have no liability to Tenant as a result of any delay in occupancy (whether for damages, abatement of all or any portion of the Rent, or otherwise), and (iv) none of the Rent Commencement Date, Commencement Date,
Expiration Date or dates for Adjustments to Base Rent shall be affected by any matter or in any way whatsoever. Any Tenant Delays will not affect the Commencement Date but will extend the Completion Date without any penalty or liability to Landlord.
Subject to the provisions of Section 10.2 of the Lease, the Tenant improvements shall belong to Landlord and shall be deemed to be incorporated into the Premises for all purposes of the Lease, unless Landlord, in writing, indicates otherwise to
Tenant. 
  
 7. Tenant Delays. There shall be no
extension of the scheduled Commencement Date or Expiration Date of the term of the Lease if the Work has not been Substantially Completed by the scheduled Commencement Date due to any delay attributable to Tenant and/or any of Tenant’s
Representatives or Tenant’s intended use of the Premises (collectively, “Tenant Delays”), including, but not limited to, any of the following described events or occurrences: (a) delays related to changes made or requested by Tenant
to the Work and/or the Approved Final Drawings; (b) the failure of Tenant to furnish all or any plans, drawings, specifications, finish details or other information required under Sections 3 and 4 above; (c) the failure of Tenant to comply with the
requirements of Section 10 below; (d) Tenant’s requirements for special work or materials, finishes, or installations other than the Building Standards or Tenant’s requirements for special construction or phasing; (e) any changes required
by the fire department, building or planning department, building inspectors or any other agency having jurisdiction over the Building, the Work and/or the Tenant Improvements if such changes are directly attributable to Tenant’s use or
Tenant’s specialized Tenant Improvements; (f) the completion of any work associated with Tenant’s Installations, including without limitation, Tenant’s high-pile storage requirements, Tenant’s racking systems, and work related to
any requirements of governmental and regulatory agencies with respect to any of Tenant’s Installations; (g) the performance of any additional work pursuant to a Change Request that is requested by Tenant; (h) the performance of work in or about
the Premises by any person, firm or corporation employed by or on behalf of Tenant, including, without limitation, any failure to complete or any delay in the completion of such work; and/or (i) any and all delays caused by or 
  

 Exhibit B, Page 4 

 
arising from acts or omissions of Tenant and/or Tenant’s Representatives, in any manner whatsoever, including, but not limited to, any and all revisions
to the Approved Final Drawings. Any delays in the construction of the Tenant Improvements due to any of the events described above, shall in no way extend or effect the date on which Tenant is required to commence paying Rent under the terms of the
Lease. It is the intention of the parties that all of such delays will be considered Tenant Delays for which Tenant shall be wholly and completely responsible for any and all consequences related to such delays, including, without limitation, any
costs and expenses attributable to increases in labor or materials. 
  
 8. Tenant Improvement Allowance. Landlord shall provide an allowance for the planning and construction of the Tenant Improvements for the Work to be performed in the Premises, as described in the Initial Plans and the Approved
Final Drawings, in the amount of One Hundred Thousand and 00/100 Dollars ($100,000.00) (the “Tenant Improvement Allowance”). Tenant shall not be entitled to any credit, abatement or payment from Landlord in the event that the amount of the
Tenant Improvement Allowance specified above exceeds the actual Tenant Improvement Costs. The Tenant Improvement Allowance shall only be used for Tenant Improvements typically installed by Landlord in warehouse and distribution buildings. The Tenant
Improvement Allowance shall be the maximum contribution by Landlord for the Tenant Improvement Costs and shall be subject to the provisions of Section 10 below. 
  

9. Tenant Improvement Costs. The Tenant Improvements’ cost (the “Tenant Improvement Costs”) shall mean and include any and
all costs and expenses of the Work, including, without limitation, all of the following: 
  
 (a) All costs of preliminary space planning and final architectural and engineering plans and specifications (including, without limitation, the scope of work, all plans and specifications, the Initial Plans, the
Final Drawings and the Approved Final Drawings) for the Tenant Improvements, and architectural fees, engineering costs and fees, and other costs associated with completion of said plans; 
  
 (b) All costs of obtaining building permits and other necessary authorizations and approvals from the City of Fremont and
other applicable agencies and jurisdictions; 
  
 (c) All costs of
interior design and finish schedule plans and specifications including as-built drawings; 
  
 (d) All direct and indirect costs of procuring, constructing and installing the Tenant Improvements in the Premises, including, but not limited to, the construction fee for overhead and profit, the cost of all on-site
supervisory and administrative staff, office, equipment and temporary services rendered by Landlord’s consultants and the General Contractor in connection with construction of the Tenant Improvements, and all labor (including overtime) and
materials constituting the Work; 
  
 (e) All fees payable to the
General Contractor, architect and Landlord’s engineering firm if they are required by Tenant to redesign any portion of the Tenant Improvements following Tenant’s approval of the Approved Final Drawings; and 
  

 Exhibit B, Page 5 

 (f) A construction management fee payable to Landlord in the amount of five percent (5%) of all direct
and indirect costs of procuring, constructing and installing the Tenant Improvements in the Premises and the Building (“CM Fee”). 
  
 10. Excess Tenant Improvement Costs. The term “Excess Tenant Improvement Costs” as used herein shall mean and refer to the
aggregate of (i) all costs related to any and all Change Requests/Change Orders, and (ii) the amount by which the actual Tenant Improvement Costs (exclusive of all costs referred to in item (i) above) (the “Actual TI Costs”) exceed the
Tenant Improvement Allowance, subject to the remaining provisions of this Section 10. Tenant shall faithfully pay all of the Excess Tenant Improvement Costs to Landlord in the following described manner. A portion of the Excess Tenant Improvement
Costs up to a maximum amount of Twenty Thousand and 00/100 Dollars ($20,000.00) shall be amortized over the initial term of the Lease at the rate of ten percent (10%) per annum and such amortized amount (together with interest charges thereon) shall
paid by Tenant with, and as part of, the Rent for the Premises in accordance with the provisions and requirements of Section 3 of the Lease (the “Amortized Excess TI Costs”). The portion of the Excess Tenant Improvement Costs in excess of
the Amortized Excess TI Costs shall be paid by Tenant, in cash, to Landlord within ten (10) days of Landlord’s delivery to Tenant of a written demand therefor together with a reconciliation of such costs. No Work shall be commenced until Tenant
has fully complied with the preceding provisions of this Section 10. If Tenant fails to remit the sums so demanded by Landlord pursuant to Section 8 above and this Section 10 within the time periods required, Landlord may, at its option, declare
Tenant in default under the Lease. 
  
 11. Change
Requests. No changes or revisions to the Approved Final Drawings shall be made by either Landlord or Tenant unless approved in writing by both parties. Upon Tenant’s request and submission by Tenant (at Tenant’s sole cost and
expense) of the necessary information and/or plans and specifications for any changes or revisions to the Approved Final Drawings and/or for any work other than the Work described in the Approved Final Drawings (“Change Requests”) and the
approval by Landlord of such Change Request(s), which approval Landlord agrees shall not be unreasonably withheld, Landlord shall perform the additional work associated with the approved Change Request(s), at Tenant’s sole cost and expense,
subject, however, to the following provisions of this Section 11. Prior to commencing any additional work related to the approved Change Request(s), Landlord shall submit to Tenant a written statement of the cost of such additional work and a
proposed tenant change order therefor (“Change Order”) in the standard form then in use by Landlord. Tenant shall execute and deliver to Landlord such Change Order and shall pay the entire cost of such additional work in the following
described manner. Any costs related to such approved Change Request(s), Change Order and any delays associated therewith, shall be added to the Tenant Improvement Costs and shall be paid for by Tenant as and with any Excess Tenant Improvement Costs
as set forth in Section 10 above. The billing for such additional costs to Tenant shall be accompanied by evidence of the amounts billed as is customarily used in the business. Costs related to approved Change Requests and Change Orders shall
include without limitation, any architectural or design fees, Landlord’s construction fee for overhead and profit, the cost of all on-site supervisory and administrative staff, office, equipment and temporary services rendered by Landlord
and/or Landlord’s consultants, and the General Contractor’s price for effecting the change. If Tenant fails to execute or deliver such Change Order, or to pay the costs related thereto, then Landlord shall not be obligated to do any
additional work related to such approved Change Request(s) and/or Change 
  

 Exhibit B, Page 6 

 
Orders, and Landlord may proceed to perform only the Work, as specified in the Approved Final Drawings. Landlord shall equitably adjust the amount of the
Tenant Improvement Costs for any deletions in the scope of the Work. 
  
 12. Termination. If the Lease is terminated prior to the Completion Date, for any reason due to the default of Tenant hereunder, in addition to any other remedies available to Landlord under the Lease, Tenant shall pay to
Landlord as Additional Rent under the Lease, within five (5) days of receipt of a statement therefor, any and all costs incurred by Landlord and not reimbursed or otherwise paid by Tenant through the date of termination in connection with the Tenant
Improvements to the extent planned, installed and/or constructed as of such date of termination, including, but not limited to, any costs related to the removal of all or any portion of the Tenant Improvements and restoration costs related thereto.
Subject to the provisions of Section 10.2 of the Lease, upon the expiration or earlier termination of the Lease, Tenant shall not be required to remove the Tenant Improvements it being the intention of the parties that the Tenant Improvements are to
be considered incorporated into the Building. Notwithstanding anything to the contrary contained herein, Landlord shall have the right to terminate the Lease, upon written notice to Tenant if Landlord is unable to obtain a building permit for the
Tenant Improvements within one hundred eighty (180) days from the date the Lease is signed by Tenant. From and after the date on which the Lease is terminated, Tenant and Landlord shall have no further rights, obligations or claims with respect to
each other arising from the Lease, except for those obligations of Tenant under the Lease which expressly survive and continue after the termination or expiration of the Lease. 
  
 13. Tenant Access. Landlord, in Landlord’s reasonable discretion and upon receipt of a written request
from Tenant, may grant Tenant a license to have access to the Premises prior to the Completion Date to allow Tenant to do other work required by Tenant to make the Premises ready for Tenant’s use and (the “Tenant’s Pre-Occupancy
Work”). It shall be a condition to the grant by Landlord and continued effectiveness of such license that: 
  
 (a) Tenant shall give to Landlord a written request to have such access not less than five (5) business days prior to the date on which such proposed
access will commence (the “Access Notice”). The Access Notice shall contain or be accompanied by each of the following items, all in form and substance reasonably acceptable to Landlord: (i) a detailed description of and schedule for
Tenant’s Pre-Occupancy Work; (ii) the names and addresses of all contractors, subcontractors and material suppliers and all other representatives of Tenant who or which will be entering the Premises on behalf of Tenant to perform Tenant’s
Pre-Occupancy Work or will be supplying materials for such work, and the approximate number of individuals, itemized by trade, who will be present in the Premises; (iii) copies of all contracts, subcontracts, material purchase orders, plans and
specifications pertaining to Tenant’s Pre-Occupancy Work; (iv) copies of all licenses and permits required in connection with the performance of Tenant’s Pre-Occupancy Work; (v) certificates of insurance (in amounts satisfactory to
Landlord and with the parties identified in, or required by, the Lease named as additional insureds) and instruments of indemnification against all claims, costs, expenses, penalties, fines, and damages which may arise in connection with
Tenant’s Pre-Occupancy Work; and (vi) assurances of the ability of Tenant to pay for all of Tenant’s Pre-Occupancy Work and/or a letter of credit or other security deemed appropriate by Landlord securing Tenant’s lien-free completion
of Tenants Pre-Occupancy Work. 
  

 Exhibit B, Page 7 

 (b) Such pre-term access by Tenant and Tenant’s employees, agents, contractors, consultants,
workmen, mechanics, suppliers and invitees shall be subject to scheduling by Landlord. 
  
 (c) Tenant’s employees, agents, contractors, consultants, workmen; mechanics, suppliers and invitees shall fully cooperate, work in harmony and not, in any manner, interfere with Landlord or Landlord’s
agents or representatives in performing the Work and any additional work pursuant to approved Change Orders, Landlord’s work in other areas of the Building or the Park, or the general operation of the Building. If at any time any such person
representing Tenant shall not be cooperative or shall otherwise cause or threaten to cause any such disharmony or interference, including, without limitation, labor disharmony, and Tenant fails to immediately institute and maintain corrective
actions as directed by Landlord, then Landlord may revoke such license upon twenty-four (24) hours’ prior written notice to Tenant. 
  
 (d) Any such entry into and occupancy of the Premises or any portion thereof by Tenant or any person or entity working for or on behalf of Tenant shall be
deemed to be subject to all of the terms, covenants, conditions and provisions of the Lease, excluding only the covenant to pay Rent. Landlord shall not be liable for any injury, loss or damage that may occur to any of Tenant’s Pre-Occupancy
Work made in or about the Premises or to any property placed therein prior to the commencement of the term of the Lease, the same being at Tenant’s sole risk and liability. Tenant shall be liable to Landlord for any damage to any portion of the
Premises, the Work or the additional work related to any Approved Change Orders caused by Tenant or any of Tenant’s employees, agents, contractors, consultants, workmen, mechanics, suppliers and invitees. In the event that the performance of
Tenant’s Pre-Occupancy Work causes extra costs to be incurred by Landlord or requires the use of other Building services, Tenant shall promptly reimburse Landlord for such extra costs and/or shall pay Landlord for such other Building services
at Landlord’s standard rates then in effect. 
  
 14.
Lease Provisions, Conflict. The terms and provisions of the Lease, insofar as they are applicable, in whole or in part, to this Exhibit B, are hereby incorporated herein by reference, and specifically including all of the
provisions of Section 31 of the Lease. In the event of any conflict between the terms of the Lease and this Exhibit B, the terms of this Exhibit B shall prevail. Any amounts payable by Tenant to Landlord hereunder shall be deemed to be
Additional Rent under the Lease and, upon any default in the payment of same, Landlord shall have all rights and remedies available to it as provided for in the Lease. 
  

 Exhibit B, Page 8 

 Exhibit C to Lease Agreement 
 Rules & Regulations 
  
 This exhibit, entitled “Rules & Regulations”, is and shall constitute Exhibit C to that certain Lease Agreement dated February 18, 2003 (the “Lease”), by and between MILPITAS INDUSTRIAL
PROPERTIES, INC., a Delaware corporation (“Landlord”), and ALPHASMART INC., a California corporation (“Tenant”), for the leasing of certain premises located at 48541 Warm Springs Boulevard, Suite 501, Fremont, California (the
“Premises”). The terms, conditions and provisions of this Exhibit C are hereby incorporated into and are made a part of the Lease. Any capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to
such terms as set forth in the Lease: 
  
 1. No advertisement,
picture or sign of any sort shall be displayed on or outside the Premises or the Building without the prior written consent of Landlord. Landlord shall have the right to remove any such unapproved item without notice and at Tenant’s expense.

  
 2. Tenant shall not regularly park motor vehicles in
designated parking areas after the conclusion of normal daily business activity. 
  
 3. Tenant shall not use any method of heating or air conditioning other than that supplied by Landlord without the prior written consent of Landlord. 
  
 4. All window coverings installed by Tenant and visible from the outside of the Building require the prior written approval
of Landlord. 
  
 5. Tenant shall not use, keep or permit to be
used or kept any foul or noxious gas or substance or any flammable or combustible materials on or around the Premises, the Building or the Park. 
  
 6. Tenant shall not alter any lock or install any new locks or bolts on any door at the Premises without the prior consent of Landlord. 
  
 7. Tenant agrees not to make any duplicate keys without the prior consent of
Landlord. 
  
 8. Tenant shall park motor vehicles in those general
parking areas as designated by Landlord except for loading and unloading. During those periods of loading and unloading, Tenant shall not unreasonably interfere with traffic flow within the Park and loading and unloading areas of other Tenants.

  
 9. Tenant shall not disturb, solicit or canvas any occupant of
the Building or Park and shall cooperate to prevent same. 
  
 10.
No person shall go on the roof without Landlord’s permission. 
  
 11. Business machines and mechanical equipment belonging to Tenant which cause noise or vibration that may be transmitted to the structure of the Building, to such a degree as to be 
  

 Exhibit C, Page 1 

 
objectionable to Landlord or other Tenants, shall be placed and maintained by Tenant, at Tenant’s expense, on vibration eliminators or other devices
sufficient to eliminate noise or vibration. 
  
 12. All goods,
including material used to store goods, delivered to the Premises of Tenant shall be immediately moved into the Premises and shall not be left in parking or receiving areas overnight. 
  
 13. Tractor trailers which must be unhooked or parked with dolly wheels beyond the concrete loading areas must use steel
plates or wood blocks under the dolly wheels to prevent damage to the asphalt paving surfaces. No parking or storing of such trailers will be permitted in the auto parking areas of the Park or on streets adjacent thereto. 
  
 14. Forklifts which operate on asphalt paving areas shall not have solid
rubber tires and shall only use tires that do not damage the asphalt. 
  
 15. Tenant is responsible for the storage and removal of all trash and refuse. All such trash and refuse shall be contained in suitable receptacles stored behind screened enclosures at locations approved by Landlord. 
  
 16. Tenant shall not store or permit the storage or placement of goods, or
merchandise or pallets or equipment of any sort outside of the Premises nor in or around the Building, the Park or any of the Common Areas of the foregoing. No displays or sales of merchandise shall be allowed in the parking lots or other Common
Areas. 
  
 17. Tenant shall not permit any animals, including, but
not limited to, any household pets, to be brought or kept in or about the Premises, the Building, the Park or any of the Common Areas of the foregoing. 
  
 18. Tenant shall not permit any motor vehicles to be washed on any portion of the Premises or in the Common Areas of the Park, nor shall Tenant permit
mechanical work or maintenance of motor vehicles to be performed on any portion of the Premises or in the Common Areas of the Park. 
  

 Exhibit C, Page 2 

 Exhibit E - Legacy Lease Agreement 
 Hazardous Materials Disclosure Certificate 
  
 Your cooperation in this matter is appreciated. Initially, the information provided by you in this Hazardous Materials Disclosure Certificate is necessary
for the Landlord (identified below) to evaluate and finalize a lease agreement with you as Tenant. After a lease agreement is signed by you and the Landlord (the “Lease Agreement”), on an annual basis in accordance with the provisions of
Section 27 of the signed Lease Agreement, you are to provide an update to the information initially provided by you in this certificate. The information contained in the Initial Hazardous Materials Disclosure Certificate and each annual certificate
provided by you thereafter will be maintained in confidentiality by Landlord subject to release and disclosure as required by (i) any lenders and owners and their respective environmental consultants, (ii) any prospective purchaser(s) of all or any
portion of the property on which the Premises are located, (iii) Landlord to defend itself or its lenders, partners or representatives against any claim or demand, and (iv) any laws, rules, regulations, orders, decrees, or ordinances, including,
without limitation, court orders or subpoenas. Any and all capitalized terms used herein, which are not otherwise defined herein, shall have the same meaning ascribed to such term in the signed Lease Agreement. Any questions regarding this
certificate should be directed to, and when completed, the certificate should be delivered to: 
  

	 Landlord:
	  	MILPITAS INDUSTRIAL PROPERTIES,
	 	  	A Delaware corporation
	 	  	c/o Legacy Partners Commercial, Inc.
	 	  	4000 East Third Avenue, Suite 600
	 	  	Foster City, California 94404-4805
	 	  	Attn:
                                       
 
	 	  	Phone: (650) 571-2200

  
 Name of (Prospective)
Tenant: ALPHASMART, INC. 
  
 Mailing Address: 937 University
Ave., Los Gatos, CA 95032 
  
 Contact Person, Title and Telephone
Number(s): Erika Nelson, Manager, 408-355-1000 
  
 Contact Person
for Hazardous Waste Materials Management and Manifests and Telephone Number(s): Erika Nelson – 408-355-1000 
  
 Address of (Prospective) Premises: 4841 Warm Springs Blvd., Suite 501 Fremont, CA 94539 
  
 Length of (Prospective) Initial Term: 5 Years 
  
 1. General Information: Describe the initial proposed operations to
take place in, on, or about the Premises, including, without limitation, principal products processed, manufactured or 
  

 Exhibit E, Page 1 

 
assembled services and activities to be provided or otherwise conducted. Existing Tenants should describe any proposed changes to on-going operations.

  
 Logistics & Distribution 
  
 2. Use, Storage and Disposal of Hazardous Materials 
  
 2.1 Will any Hazardous Materials be used, generated, stored or
disposed of in, on or about the Premises? Existing Tenants should describe any Hazardous Materials which continue to be used, generated, stored or disposed of in, on or about the Premises. 
  

	Wastes	  	Yes  ̈	  	No x
	Chemical Products	  	Yes  ̈	  	No x
	Other	  	Yes  ̈	  	No x

  
 If Yes is marked, please explain:                             
                                        
                                        
                                        
                                        
      
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                        
                                        
                                        
                   
  
 2.2 If “Yes” is marked in Section 2.1, attach a list of any Hazardous Materials to be used, generated, stored or disposed of in, on or
about the Premises, including the applicable hazard class and an estimate of the quantities of such Hazardous Materials at any given time; estimated annual throughput; the proposed location(s) and method of storage (excluding nominal amounts of
ordinary household cleaners and janitorial supplies which are not regulated by any Environmental Laws); and the proposed location(s) and method of disposal for each Hazardous Material, including, the estimated frequency, and the proposed contractors
or subcontractors. Existing Tenants should attach a list setting forth the information requested above and such list should include actual data from on-going operations and the identification of any variations in such information from the prior
year’s certificate. 
  
 3. Storage Tanks and Sumps

  
 3.1 Is any above or below ground storage of
gasoline, diesel, petroleum, or other Hazardous Materials in tanks or sumps proposed in, on or about the Premises? Existing Tenants should describe any such actual or proposed activities. 
  

	Yes  ̈	  	No x

  
 If yes, please explain:                                
                                        
                                        
                                        
                                        
                       
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                        
                                        
                                        
                   
  

 Exhibit E, Page 2 

 4. Waste Management 
  
 4.1 Has your company been issued an EPA Hazardous Waste Generator I.D. Number? Existing Tenants should describe any
additional identification numbers issued since the previous certificate. 
  

	Yes  ̈	  	No x

  
 4.2 Has your
company filed a biennial or quarterly reports as a hazardous waste generator? Existing Tenants should describe any new reports filed. 
  

	Yes  ̈	  	No x

  
 If yes, attach a copy of the most
recent report filed. 
  
 5. Wastewater Treatment and Discharge

  
 5.1 Will your company discharge wastewater or
other wastes to: 
  

	No storm drain?	  	No sewer?
	No surface water?	  	No no wastewater or other wastes discharged.

  
 Existing Tenants should indicate any
actual discharges. If so, describe the nature of any proposed or actual discharge(s). 
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                        
                                        
                                        
                   
  
 5.2 Will any such wastewater or waste be treated before discharge? 
  

	Yes  ̈	  	No x

  
 If yes, describe the type of treatment
proposed to be conducted. Existing Tenants should describe the actual treatment conducted. 
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                        
                                        
                                        
                   
  
 6. Air Discharges 
  
 6.1 Do you plan for any air filtration systems or stacks to be used in your company’s operations in, on or about the Premises that will
discharge into the air; and will such air emissions be monitored? Existing Tenants should indicate whether or not there are any such air filtration systems or stacks in use in, on or about the Premises which discharge into the air and whether such
air emissions are being monitored. 
  

	Yes  ̈	  	No x

  

 Exhibit E, Page 3 

 If yes, please describe:                                
                                        
                                        
                                        
                                        
                      
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                        
                                        
                                        
                   
  
 6.2 Do you propose to operate any of the following types of equipment, or any other equipment requiring an air emissions permit? Existing Tenants
should specify any such equipment being operated in, on or about the Premises. 
  

	no Spray booth(s)	  	no Incinerator(s)
	no Dip tank(s)	  	     Other (Please describe)
	no Drying oven(s)	  	no No Equipment Requiring Air Permits

  
 If yes, please describe:                                
                                        
                                        
                                        
                                        
                      
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                        
                                        
                                        
                   
  
 7. Hazardous Materials Disclosures 
  
 7.1 Has your company prepared or will it be required to prepare a Hazardous Materials management plan (“Management Plan”) pursuant to
Fire Department or other governmental or regulatory agencies’ requirements? Existing Tenants should indicate whether or not a Management Plan is required and has been prepared. 
  

	Yes  ̈	  	No x

  
 If yes, attach a copy of the
Management Plan. Existing Tenants should attach a copy of any required updates to the Management Plan. 
  
 7.2 Are any of the Hazardous Materials, and in particular chemicals, proposed to be used in your operations in, on or about the Premises regulated
under Proposition 65? Existing Tenants should indicate whether or not there are any new Hazardous Materials being so used which are regulated under Proposition 65. 
  

	Yes  ̈	  	No x

  
 If yes, please explain:                                
                                        
                                        
                                        
                                        
                        
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                        
                                        
                                        
                   
  
 8. Enforcement Actions and Complaints 
  
 8.1 With respect to Hazardous Materials or Environmental Laws, has your company ever been subject to any agency enforcement actions, administrative
orders, or consent decrees or has your company received requests for information, notice or demand letters, or any other inquiries regarding its operations? Existing Tenants should indicate whether or not any such 
  

 Exhibit E, Page 4 

 
actions, orders or decrees have been, or are in the process of being, undertaken or if any such requests have been received. 
  

	Yes  ̈	  	No x

  
 If yes, describe the actions, orders
or decrees and any continuing compliance obligations imposed as a result of these actions, orders or decrees and also describe any requests, notices or demands, and attach a copy of all such documents. Existing Tenants should describe and attach a
copy of any new actions, orders, decrees, requests, notices or demands not already delivered to Landlord pursuant to the provisions of Section 27 of the signed Lease Agreement. 
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                        
                                        
                                        
                   
  
 8.2 Have there ever been, or are there now pending, any lawsuits against your company regarding any environmental or health and safety concerns?

  

	Yes  ̈	  	No x

  
 If yes, describe any such lawsuits and
attach copies of the complaint(s), cross-complaint(s), pleadings and all other documents related thereto as requested by Landlord. Existing Tenants should describe and attach a copy of any new complaint(s), cross-complaint(s), pleadings and other
related documents not already delivered to Landlord pursuant to the provisions of Section 27 of the signed Lease Agreement. 
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                        
                                        
                                        
                   
  
 8.3 Have there been any problems or complaints from adjacent Tenants, owners or other neighbors at your company’s current facility with regard
to environmental or health and safety concerns? Existing Tenants should indicate whether or not there have been any such problems or complaints from adjacent Tenants, owners or other neighbors at, about or near the Premises. 
  

	Yes  ̈	  	No x

  
 If yes, please describe. Existing
Tenants should describe any such problems or complaints not already disclosed to Landlord under the provisions of the signed Lease Agreement. 
                                       
                                        
                                        
                                        
                                        
                                        
                   
                                       
                                        
                                        
                                       
                                        
                                        
                    
  
 9. Permits and Licenses 
  
 9.1 Attach copies of all Hazardous Materials permits and licenses including a Transporter Permit number issued to your company with respect to its
proposed operations in, on or about the Premises, including, without limitation, any wastewater discharge permits, air emissions permits, and use permits or approvals. Existing Tenants should attach copies of any new permits and licenses as well as
any renewals of permits or licenses previously issued. 
  

 Exhibit E, Page 5 

 The undersigned hereby acknowledges and agrees that (A) this Hazardous Materials Disclosure Certificate
is being delivered in connection with, and as required by, Landlord in connection with the evaluation and finalization of a Lease Agreement and will be attached thereto as an exhibit; (B) that this Hazardous Materials Disclosure Certificate is being
delivered in accordance with, and as required by, the provisions of Section 27 of the Lease Agreement; and (C) that Tenant shall have and retain full and complete responsibility and liability with respect to any of the Hazardous Materials disclosed
in the HazMat Certificate notwithstanding Landlord’s/Tenant’s receipt and/or approval of such certificate. Tenant further agrees that none of the following described acts or events shall be construed or otherwise interpreted as either (a)
excusing, diminishing or otherwise limiting Tenant from the requirement to fully and faithfully perform its obligations under the Lease with respect to Hazardous Materials, including, without limitation, Tenant’s Indemnification of the
indemnitees and compliance with all Environmental Laws, or (b) imposing upon Landlord, directly or indirectly, any duty or liability with respect to any such Hazardous Materials, including, without limitation, any duty on Landlord to investigate or
otherwise verify the accuracy of the representations and statements made therein or to ensure that Tenant is in compliance with all Environmental Laws; (i) the delivery of such certificate to Landlord and/or Landlord’s acceptance of such
certificate, (ii) Landlord’s review and approval of such certificate, (iii) Landlord’s failure to obtain such certificate from Tenant at any time, or (iv) Landlord’s actual or constructive knowledge of the types and quantities of
Hazardous Materials being used, stored, generated, disposed of or transported on or about the Premises by Tenant or Tenants Representatives. Notwithstanding the foregoing or anything to the contrary contained herein, the undersigned acknowledges and
agrees that Landlord and its partners, lenders and representatives may, and will, rely upon the statements, representations, warranties, and certifications made herein and the truthfulness thereof in entering into the Lease Agreement and the
continuance thereof throughout the term, and any renewals thereof, of the Lease Agreement. 
  
 I (print name) James M. Walker, acting with full authority to bind the (proposed) Tenant and on behalf of the (proposed) Tenant, certify, represent and warrant that the information contained in this certificate is
true and correct. 
  
 (Prospective) Tenant: 
  

	 By:
	 	 /s/ James M Walker

	 Title:
	 	 CFO

	 Date:
	 	 2/25/03

  
  

 Exhibit E, Page 6 

 Exhibit F 
 First Amendment to Lease Agreement 
 Change of Commencement Date 
 (Example) 
  
 This First Amendment to Lease Agreement (the “Amendment”) is made and entered into to be effective as of
            , by and between              (“Landlord”), and
             (“Tenant”), with reference to the following facts: 
  
 Recitals 
  
 A. Landlord and Tenant have entered into that certain Lease Agreement dated
             (the “Lease”), for the leasing of certain premises containing approximately             
rentable square feet of space located at             , California (the “Premises”) as such Premises are more fully described in the Lease. 
  
 B. Landlord and Tenant wish to amend the Commencement Date of the Lease.

  
 NOW, THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 
  

	 	1.	 	Recitals: Landlord and Tenant agree that the above recitals are true and correct. 

  

	 	2.	 	The Commencement Date of the Lease shall be                     .

  

	 	3.	 	The last day of the Term of the Lease (the “Expiration Date”) shall be
                    . 

  

	 	4.	 	The dates on which the Base Rent will be adjusted are: 

  

	 	    	 	for the period              to              the
monthly Base Rent shall be $            ; 

  

	 	    	 	for the period              to              the
monthly Base Rent shall be $            ; and 

  

	 	    	 	for the period              to              the
monthly Base Rent shall be $            . 

  
 5. Effect of Amendment: Except as modified herein, the terms and conditions of the Lease shall remain unmodified and continue in full force and
effect. In the event of any conflict between the terms and conditions of the Lease and this Amendment, the terms and conditions of this Amendment shall prevail. 
  

6. Definitions: Unless otherwise defined in this Amendment, all terms not defined in this Amendment shall have the meaning set forth in the
Lease. 
  

 Exhibit F, Page 1 

 7. Authority: Subject to the provisions of the Lease, this Amendment shall be binding upon and
inure to the benefit of the parties hereto, their respective heirs, legal representatives, successors and assigns. Each party hereto and the persons signing below warrant that the person signing below on such party’s behalf is authorized to do
so and to bind such party to the terms of this Amendment. 
  
 8.
The terms and provisions of the Lease are hereby incorporated in this Amendment. 
  
 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first above written. 
  
 [PROPERTY MANAGER: Please provide Tenant Information and Word Processing will complete the signature block] 
  

 Exhibit F, Page 2Real Estate Lease Agreement Alpha Vista Properties LLC

 EXHIBIT 10.9 
  
 COMMERCIAL BUILDING LEASE 
  
 TABLE OF CONTENTS 
  

	 	  	 	  	 	  	Page

	ARTICLE 1 DATE. PARTIES. NOTICES	  	1
			
	    1.1	  	 Date of Lease
	  	1
	1.2	  	 Parties to Lease
	  	1
	 	  	1.2.1	  	 Landlord
	  	1
	 	  	1.2.2	  	 Tenant
	  	1
	1.3	  	 Notices to Parties
	  	1
	 	  	1.3.1	  	 Transmittal of Notices
	  	1
	 	  	1.3.2	  	 Addresses for Notices
	  	1
	 	  	1.3.3	  	 Change of Address
	  	1
	 	  	1.3.4	  	 Effectiveness
	  	1
		
	ARTICLE 2 GENERAL USAGE DEFINITIONS	  	1
			
	2.1	  	 Definitions of General Usage
	  	1
	 	  	2.1.1	  	 Commercial Building
	  	1
	 	  	2.1.2	  	 Common Area
	  	2
	 	  	2.1.3	  	 Environmental Definitions
	  	2
	 	  	(a)	  	 Environmental Laws
	  	2
	 	  	(b)	  	 Hazardous Substances
	  	2
	 	  	(c)	  	 Hazardous Discharge
	  	2
	 	  	2.1.4	  	 Lease
	  	2
	 	  	2.1.5	  	 Leased Premises
	  	2
	 	  	2.1.6	  	 Tenant’s Share
	  	2
		
	ARTICLE 3 AGREEMENT TO LEASE, IMPROVEMENTS AND USE	  	2
			
	3.1	  	 Lease of Leased Premises
	  	2
	3.2	  	 Use of Common Area
	  	2
	3.3	  	 Landlord’s Improvement of Premises
	  	3
	3.4	  	 Additional Space
	  	3
		
	ARTICLE 4 TERM	  	3
			
	4.1	  	 Definition of Term
	  	3
	4.2	  	 Original Term
	  	3
	 	  	4.2.1	  	 Dates
	  	3
	 	  	(a)	  	 Original Term Commencement Date
	  	3
	 	  	(b)	  	 Original Term Ending Date
	  	3
	4.3	  	 Options for Extension
	  	3
	4.4	  	 Holding Over
	  	4

  

 i 

 TABLE OF CONTENTS 
 (Continued) 
  

	 	  	 	  	Page

		
	ARTICLE 5 RENT	  	4
			
	    5.1	  	 Rent
	  	4
	 	  	5.1.1	  	 Rent
	  	4
	 	  	5.1.2	  	 Increased Rent During Extension Terms
	  	4
	 	  	5.1.3	  	 Late Rental Charge
	  	5
	 	  	5.1.4	  	 Payee and Address
	  	5
	 	  	5.1.5	  	 Rent Abatement
	  	5
	 	  	5.1.6	  	 Rental Adjustment
	  	5
	5.2	  	 Adequacy of Rent
	  	6
		
	ARTICLE 6 TAXES	  	6
			
	6.1	  	 Definition of Real Property Taxes
	  	6
	6.2	  	 Real Property Taxes
	  	6
	6.3	  	 Personal Property Taxes
	  	6
		
	ARTICLE 7 REPAIRS AND ALTERATIONS OF THE LEASED PREMISES AND COMMERCIAL BUILDING	  	6
			
	7.1	  	 General Repairs/Alterations
	  	6
	 	  	7.1.1	  	 Landlord’s Repairs
	  	6
	 	  	7.1.2	  	 Tenant’s Repairs. Emergency Repairs
	  	6
	 	  	7.1.3	  	 Emergency Repairs
	  	7
	 	  	7.1.4	  	 Alterations and Improvements
	  	7
	7.2	  	 Governmentally Mandated Repairs/Cleanups
	  	7
	 	  	7.2.1	  	 Tenant
	  	7
	 	  	(a)	  	 General
	  	7
	 	  	(b)	  	 Environmental
	  	8
	 	  	7.2.2	  	 Landlord
	  	8
	 	  	(a)	  	 General
	  	8
	 	  	(b)	  	 Environmental
	  	8
	7.3	  	 Damage by Casualty
	  	8
	 	  	7.3.1	  	 Repair and Restoration
	  	8
	7.4	  	 Condemnation
	  	8
	 	  	7.4.1	  	 Restoration
	  	8
	7.5	  	 Condition on Surrender
	  	8
	7.6	  	 Mechanic’s Liens
	  	9
		
	ARTICLE 8 COMMON AREA MAINTENANCE	  	9
			
	8.1	  	 Maintenance
	  	9
	8.2	  	 Expenses
	  	10
	8.3	  	 Reimbursement
	  	10
	8.4	  	 Late Night Light
	  	10

  

 ii 

 TABLE OF CONTENTS 
 (Continued) 
  

	 	  	 	  	Page

	8.5	  	 Non-Profit Basis
	  	11
	8.6	  	 Audit
	  	11
		
	ARTICLE 9 INDEMNIFICATION	  	11
			
	9.1	  	 Tenant’s Indemnification
	  	11
	 	  	9.1.1	  	 General
	  	11
	 	  	9.1.2	  	 Environmental
	  	11
	9.2	  	 Landlord’s Indemnification
	  	12
	 	  	9.2.1	  	 Environmental
	  	12
	9.3	  	 Indemnity Survival
	  	12
		
	ARTICLE 10 INSURANCE	  	12
			
	10.1	  	 Property Insurance
	  	12
	10.2	  	 Liability Insurance
	  	12
	10.3	  	 Tenant’s Fire Insurance
	  	12
	10.4	  	 Insurance Carrier
	  	13
		
	ARTICLE 11 UTILITIES	  	13
			
	11.1	  	 Utilities
	  	13
		
	ARTICLE 12 SEPARATION OF USES	  	13
			
	12.1	  	 Separation of Uses
	  	13
	 	  	12.1.1	  	 Tenant’s Concern
	  	13
	 	  	12.1.2	  	 Landlord’s Safeguard for Tenant
	  	13
		
	ARTICLE 13 REMODEL—COSTS	  	13
			
	13.1	  	 Landlord’s Improvements to Premises
	  	13
		
	ARTICLE 14 TENANT’S FIXTURES AND SIGNS	  	14
			
	14.1	  	 Tenant’s Fixtures and Signs
	  	14
	14.2	  	 Landlord Waiver
	  	14
		
	ARTICLE 15 NO COVENANT TO OPERATE	  	14
			
	15.1	  	 No Covenant to Operate
	  	14
		
	ARTICLE 16 TRANSFER OF INTERESTS AND RIGHTS OF SUCCESSORS	  	14
			
	16.1	  	 Landlord’s Transfer
	  	14
	16.2	  	 Tenant’s Attornment
	  	15
	16.3	  	 Tenant’s Transfer
	  	15
	    16.4	  	 Rights of Successors
	  	15
		
	 ARTICLE 17 USE OF PREMISES & EXCLUSIVE FEATURES
	  	15

  

 iii 

 TABLE OF CONTENTS 
 (Continued) 
  

	 	  	 	  	 	  	Page

	    17.1	  	 Use of Premises
	  	15
	 	  	17.1.1	  	 Use of Premises
	  	15
		
	ARTICLE 18 DEFAULT	  	15
			
	18.1	  	 Tenant’s Default
	  	15
	18.2	  	 Landlord’s Default
	  	16
	18.3	  	 Interest
	  	16
	18.4	  	 Remedies Cumulative
	  	16
	18.5	  	 No Waiver
	  	16
	18.6	  	 Governing Law
	  	17
	18.7	  	 Attorney’s Fees
	  	17
		
	ARTICLE 19 DAMAGE BY CASUALTY TERMINATION RIGHT	  	17
			
	19.1	  	 Destruction Due to Risk Covered by Insurance
	  	17
	19.2	  	 Destruction Due to Risk Not Covered by Insurance
	  	17
		
	ARTICLE 20 CONDEMNATION TERMINATION RIGHT	  	17
			
	20.1	  	 Termination by Tenant
	  	17
		
	ARTICLE 21 GENERAL PROVISIONS	  	18
			
	21.1	  	 Compliance With Laws
	  	18
	21.2	  	 Interpretation
	  	18
	21.3	  	 Estoppel Certificate
	  	18
	21.4	  	 Right of Entry
	  	18
	21.5	  	 No Joint Venture
	  	18
	21.6	  	 No Third Party Beneficiaries Intended
	  	18
	21.7	  	 Invalid Provisions
	  	18
	21.8	  	 Non-Disclosure
	  	19
	21.9	  	 Dates of Performance
	  	19
	21.10	  	 Time of the Essence
	  	19
	21.11	  	 Entire Agreement and Modification
	  	19
	21.12	  	 Attorney’s Fees
	  	19
		
	EXECUTION PAGE	  	20

  
  

 iv 

 COMMERCIAL BUILDING LEASE 
  
 —o0o— 
  
 ARTICLE 1 
 DATE. PARTIES. NOTICES.

  

	 1.1    Date of Lease.
	 	February 1, 2001 for identification purposes only
		
	 1.2    Parties to Lease.
	 	 
		
	 1.2.1    Landlord.
	 	 ALPHA VISTA PROPERTIES LLC
 c/o Debra
Barrus, Manager
 17215 Big Pine Drive
 Reno, Nevada
89511

		
	 1.2.2    Tenant.
	 	 ALPHA SMART, INC.
 2400 Stevens Creek
Blvd., Suite 300
 Cupertino, CA 95014

  
 1.3    Notices to Parties. 
  
 1.3.1    Transmittal of Notices. Notices and communication (“Notices”) required or permitted to be given in connection with this Lease shall be mailed by certified or
registered United States mail, postage prepaid, or delivered (either personal delivery or delivery by private express courier service such as Federal Express). 
  

1.3.2    Addresses for Notices. To the addresses set forth in Section 1.2 above. 
  
 1.3.3    Change of Address. The
person and the place to which Notices are to be mailed or delivered may be changed by either party by written notice to the other party given in accordance with Sections 1.3.1 and 1.3.2. 
  
 1.3.4    Effectiveness. Notices sent in accordance with this Section 1.3 shall be
effective upon receipt or on the date of refusal to accept delivery of such notice. 
  
 ARTICLE 2 
 GENERAL USAGE DEFINITIONS 
  
 2.1    Definitions of General Usage.

  
 2.1.1    Commercial
Building. The Commercial Building located at 1005 Vista Way, Red Bluff, California 96080. The Commercial Building contains approximately seventy-four thousand five hundred ten (74,510) square feet. 

 2.1.2    Common Area. All those portions of the real property
on which the Commercial Building located outside of the enclosed areas of the Commercial Building. 
  
 2.1.3    Environmental Definitions. 
  
 (a)  Environmental Laws. Any and all applicable federal, state and local statutes,
regulations, ordinances and rules as presently existing or as may be amended or adopted in the future, pertaining to the protection of human health and/or the environment. 
  
 (b)  Hazardous Substances. Any and all hazardous, toxic or radioactive substance,
waste, or material, including without limitation, petroleum oil and its fractions, listed or defined by applicable Environmental Laws. 
  
 (c)  Hazardous Discharge. Any and all leaks, spills, release, discharge, emission or disposal of Hazardous
Substances into or upon the Leased Premises or balance of the Commercial Building or of any migration of Hazardous Substances into or upon any part of the Commercial Building through the air, soil or ground water from any other part of the
Commercial Building or from the property adjacent to the Commercial Building. 
  
 2.1.4    Lease. This Commercial Building Lease. 
  
 2.1.5    Leased Premises. The portion of the Commercial Building designated LEASED PREMISES and outlined
in red on Exhibit ”A” and consisting of approximately fifteen thousand (15,000) square feet. 
  
 2.1.6    Tenant’s Share. A fraction, the numerator of which fraction shall be the area on the
Leased Premises
 (15,000 sq. ft.) and the denominator of which fraction shall be the total ground floor building area in the Commercial Building
 (74,510 sq. ft.). 
  
 ARTICLE 3 
 AGREEMENT TO LEASE, IMPROVEMENTS AND USE 
  
 3.1    Lease of Leased Premises. Landlord hereby leases to Tenant the Leased Premises. 
  
 3.2    Use of Common Area. The Common Area shall be for the sole and exclusive joint use, except as provided in
Section 12.12 hereof, of all tenants of the Commercial Building, their customers, invitees and employees, and Landlord hereby grants to Tenant and its customers, invitees and employees the right of such shared exclusive joint use of all of said
Common Area. Except as specifically provided to the contrary elsewhere in this Lease, the Common Area improvements shall be used only for the purpose for which they were designed. By way of example, but not to the exclusion of anything not mentioned
herein, parking areas shall be used for the parking of motor vehicles, drive aisles shall be used for access and traffic circulation, sidewalks shall be used for pedestrian access and landscaped areas, and trash dumpster areas shall be used only for
such purposes. All of the uses permitted within the Common Area shall be used with reason and judgment so as not to interfere with the primary purpose of the Common Area which is to provide 
  

 2 

 for parking and access for only the tenants in the Commercial Building, their customers and invitees and for servicing of
said tenant’s businesses. Persons using the Common Area in accordance with this Lease shall not be charged any fee for such use without the written consent of Tenant. 
  
 3.3    Landlord’s Improvement of Premises. In consideration of Tenant entering into
this Lease and as a condition of Tenant’s continued obligation of this Lease, Landlord agrees, within sixty (60) days after the date of this Lease as set forth in Section 1.1 hereinabove, to make those Tenant improvements as further described
in Section 13.1 hereinbelow. 
  
 3.4    Additional Space. Tenant shall have a right of first refusal during the initial and any extended term of this Lease to increase the Leased Premises by an additional three thousand seven hundred fifty
(3,750) square feet. The additional space shall be that space immediately south of the Leased Premises. At any time that Landlord receives an offer to lease the additional space to a third party, Landlord shall first offer that space to Tenant upon
the same terms and conditions as are provided for herein as to the Leased Premises. Tenant shall have the right to accept the additional space by giving Landlord written notice of that acceptance within ten (10) days of the receipt of the
notification from Landlord. Upon Tenant’s acceptance of the additional space, that space shall be added to and become a part of the Leased Premises, subject to all the terms and conditions of this Commercial Building Lease. 
  
 ARTICLE 4 
 TERM 
  
 4.1    Definition of Term. “Term” or “Term of this Lease” shall mean the Original Term (as defined in Section 4.2) and any Extension (as defined in Section 4.3) which may be exercised.

  
 4.2    Original Term. The
original term (“Original Term”) of this Lease shall five (5) years. The Original Term shall commence on the Original Term Commencement Date and end on the Original Term Ending Date. 
  
 4.2.1    Dates. 

 
 (a)  Original Term Commencement Date:
That date upon which the Leased Premises are ready for occupancy by Tenant. Landlord is in the process of making Tenant improvements and changes to the Leased Premises. Landlord and Tenant shall, immediately upon completion of the Tenant
improvements and when the Leased Premises are available for use by Tenant, execute and attach to this Commercial Building Lease, the addendum entitled “Commencement Date of Term of Lease.” 
  
 (b)  Original Term Ending Date: That day
which is sixty (60) months after the Original Commencement Date. 
  
 4.3    Options for Extension. Tenant is hereby granted the right to extend the Term of this Lease for two (2) separate, consecutive and additional extension terms (“Extension Term”), each for a
period of five (5) years. Tenant shall notify Landlord in writing, not less than three (3) months 
  

 3 

 prior to the expiration of the preceding Term, of its intention to extend this Lease effective as of the end of the
preceding Term. Each Extension Term shall be on the same terms and conditions as set forth in this Lease, including rent as provided in Article 5.1.2 hereof, except as to length of term and number of extensions. Provided, further, if Tenant is in
default on the date any Extended Term is to commence, the Extended Term shall not commence and this Lease shall expire at the end of the preceding Term. 
  
 4.4    Holding Over. If Tenant remains in possession of the Leased Premises after the expiration of this Lease, such
continued possession, if Rent is paid by Tenant and accepted by Landlord, shall create a month-to-month tenancy on the terms herein specified, except that said tenancy may be terminated at any time by either party by thirty (30) days’ notice to
the other party. 
  
 ARTICLE 5 
 RENT 
  
 5.1    Rent. 
  
 5.1.1    Rent. Tenant shall pay rent (“Rent”) during the first twelve (12) months of the Original
Term of this Lease in the amount of Five Thousand Two Hundred Fifty Dollars ($5,250.00) per month in advance on the first day of each calendar month. During the next forty-eight (48) months of this Lease, Tenant shall pay Rent in the amount of Five
Thousand Four Hundred Ten Dollars ($5,410.00) per month in advance on the first day of each calendar month. The Rent for any fractional calendar month shall be prorated. 
  
 5.1.2    Increased Rent During Extension Terms. In the event that Tenant elects
to exercise its option to extend the term of this Lease for either or both Extension Terms as provided in Section 4.3 hereinabove, the Rent shall be increased so that during the first twelve (12) months of the first Extended Term, rent in the amount
of Five Thousand Seven Hundred Fifty Dollars ($5,750.00) per month shall be payable in advance on the first day of each calendar month. Beginning one year after the 1st day of the first Extended Term and continuing annually during the first Extended
Term and, if exercised, the second Extended Term, monthly rent shall be set in the following manner: 
  
 The Consumer Price Index for Pacific Cities and U.S. City Average, All Items Index (Base Year 1967 = 100) published by United States
Department of Labor, Bureau of Labor Statistics (“Index”), which is published for the month of November 2005 (“Extension Index”), shall be compared with the index published for the month of December 2004 (“Beginning
Index”). 
  
 If the Extension Index is
increased over the Beginning Index, the monthly rent payable during the succeeding twelve (12) months shall be set by multiplying the monthly rent paid for the month immediately preceding the rental adjustment by a fraction, the numerator of which
is the Extension Index, and the denominator of which is the Beginning Index. As soon as the monthly rent for the succeeding twelve (12) months is set, Landlord shall give Tenant notice of the amount of monthly rent for the succeeding twelve (12)
month period. 
  

 4 

 This adjustment shall take place annually during the first Extended Term and the second
Extended Term. The Extension Index and the Beginning Index shall be changed as to each rental adjustment to reflect the month statistics for the month immediately preceding each annual increase and the Beginning Index shall be the index for the
month in which increased rent was paid for the prior year. 
  
 If the Index is changed so that the base year differs from that used above, the Index shall be converted in accordance with the conversion factor published by United States Department of Labor, Bureau of Labor
Statistics. If the Index is discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index had not been
discontinued or revised. 
  
 Notwithstanding the
above, no annual rental increase shall be in excess of five percent (5%) over the rental paid for the prior twelve (12) month period. In no event shall rental be decreased on any annual adjustment. 
  
 5.1.3    Late Rental
Charge. In the event that any rental payment is received by Landlord after the tenth (10th) day of the month for which such Rent is due, Tenant shall be liable for a late charge in the sum of five percent (5%) of the late rent. 
  
 5.1.4    Payee and Address.
Rent and all other amounts payable by Tenant to Landlord under this Lease shall be paid by checks or drafts payable and mailed as follows: 
  

	(i)  Payee of Rents:	 	 ALPHA VISTA PROPERTIES LLC
 c/o Debra Barrus, Manager
 17215 Big Pine Drive
 Reno, Nevada 89511

  
 Landlord may change
the name and address of Payee by written notice to Tenant. 
  
 5.1.5    Rent Abatement. Commencing with the date on which Tenant is deprived of the use of any portion of the Leased Premises or of any rights under this Lease by reason of condemnation or
casualty damage or restoration thereof or by reason of any repairs, improvements or alterations by Landlord under any provision of this Lease, the Rent shall be abated or proportionately reduced according to the extent to which Tenant is deprived of
such use or rights. 
  
 5.1.6    Rental Adjustment. In the event that Landlord shall lease a portion of the Commercial Building, which portion is substantially similar to the Leased Premises and the improvements contained in the
Leased Premises, for a rental which is less than the rental then being charged to Tenant, Landlord agrees that upon Tenant’s written request, Landlord and Tenant will meet and confer with respect to an equitable adjustment to be made to
Tenant’s rent. In the event that Landlord and Tenant are not able to agree upon an adjustment to the Rent, the matter shall be submitted to binding arbitration under and pursuant to the California Code of Civil Procedure § 1280, et seq.

  

 5 

 5.2    Adequacy of Rent. Landlord and Tenant acknowledge and agree that
the Rent provided for in this Lease is adequate consideration for the leasehold granted hereby. 
  
 ARTICLE 6 
 TAXES 
  
 6.1    Definition of Real Property Taxes. As used in this Article 6 and except as
provided hereinbelow, the term “Real Property Tax” shall mean and include only real estate taxes and assessments, general and special, ordinary and extraordinary, foreseen and unforeseen, including without limitation, assessments for local
improvements and betterments, which are (i) assessed, levied or imposed against the entire Commercial Building, including the improvements thereon, during the Term of this Lease by any federal, state, county, city or other authority having the power
to tax, and (ii) actually paid by Landlord. 
  
 6.2    Real Property Taxes. Landlord shall be responsible for paying all real property taxes with respect to the Commercial Building and the Leased Premises. 
  
 6.3    Personal Property Taxes. Tenant
shall pay, before delinquency, all taxes, assessments, license fees, and other charges that are levied and assessed against Tenant’s personal property installed or located in or on the Leased Premises, and that become payable during the Term.
On demand by Landlord, Tenant shall furnish Landlord with satisfactory evidence of these payments. 
  
 ARTICLE 7 
 REPAIRS AND ALTERATIONS OF THE LEASED PREMISES 
 AND COMMERCIAL BUILDING 
  
 7.1    General Repairs/Alterations. 
  
 7.1.1    Landlord’s Repairs. Landlord agrees to keep the building structure
on the Leased Premises (including, without limitation, the roof, roof structures and supports, foundation and structural supports, walls and structural portion of the floors) in good repair during the Term. 
  
 7.1.2    Tenant’s Repairs.
Emergency Repairs. Excepting only matters to be repaired or replaced by Landlord as herein provided, Tenant during the entire term of this Lease and any extension thereof shall keep and maintain the Leased Premises and every part thereof in good
repair, and upon termination of this Lease by lapse of time or otherwise, Tenant shall deliver up the Leased Premises in good condition and repair, ordinary wear and tear thereof from reasonable and normal use and damage from casualty excepted.
Should Tenant, after notice from Landlord fail to make with reasonable promptness any repairs which are the obligation of Tenant hereunder, Landlord may (but shall not be required to so do) enter the Leased Premises and put the same in good order,
condition and repair, and the reasonable cost thereof shall become due and payable by Tenant to Landlord upon demand. When Landlord makes such demand for payment, Landlord shall furnish Tenant with an itemized statement of the repairs and charges at
the time such demand is made without and thereafter shall substantiate such demand by proper invoices. 
  

 6 

 7.1.3    Emergency Repairs. If any repair or maintenance for which
Landlord is obligated is of an emergency nature which, if not attended to immediately, will or might result in injury or damage to persons or property, or interfere with the conduct of Tenant’s business on the Premises, then Tenant, without
prior notice of Landlord, may make such emergency repairs or perform such maintenance as is necessary to meet the emergency and may deduct the reasonable cost and expense thereof from any Rent payable hereunder. 
  
 7.1.4    Alterations and Improvements.
Tenant shall not make any structural or exterior alterations to the Leased Premises without Landlord’s prior written consent. Tenant, at its cost, shall have the right to make, without Landlord’s consent, nonstructural alterations and
improvements to the interior of the Leased Premises which Tenant requires in order to conduct its business on the Leased Premises. In making any such alterations that Tenant has a right to make, Tenant shall: 
  
 (a) Submit reasonably detailed plans and specifications and
working drawings of the proposed alterations and the name of its contractor at least fifteen (15) days before the date it intends to commence the alterations. 
  

(b) The alterations shall be approved by all appropriate government agencies and all applicable permits and authorizations shall be
obtained before commencement of the alterations. 
  
 (c) All alterations shall be completed with due diligence in compliance with the plans, specifications, working drawings and applicable laws. 
  
 (d) If the estimated cost of the alterations exceeds $25,000.00 before the commencement of the alterations, Tenant, at its cost, shall
furnish to Landlord a Performance and Completion Bond issued by an insurer acceptable to Landlord. 
  
 (e) The alterations shall be performed in a manner that will not interfere with the quiet enjoyment of the other tenants in the Commercial
Building. 
  
 Any alterations made shall be remain on and be
surrendered with the Leased Premises on expiration or termination of this Lease, except that Landlord can elect, within thirty (30) days before the expiration of the term, or within five (5) days after termination of the term to require Tenant to
remove any such alterations. If Landlord so elects, Tenant, at its cost, shall restore the Leased Premises to the condition designated by Landlord in its written election. 
  
 7.2     Governmentally Mandated Repairs/Cleanups. 
  
 7.2.1    Tenant. 
  
 (a)    General. Tenant
shall make non-structural repairs, improvements and alterations to the interior of the Leased Premises which are made necessary or required by reason of any law, rule, regulation or order, if and only to the extent made necessary or required by the
special 
  

 7 

 
nature of the operation of Tenant’s business where, because of the special nature of the operation of Tenant’s business, the rule, regulation, or
order imposes requirements not generally applicable to other retail space. Tenant may contest the validity of any such law, rule, regulation or order, but shall indemnify and save Landlord harmless from any loss pending such contest. 
  
 (b) Environmental. If required to do so by any
governmental entity having jurisdiction, Tenant shall remove from the Leased Premises all Hazardous Substances for which Tenant has an obligation to indemnify Landlord under Section 9.1.2, and shall restore the Leased Premises to a clean, safe, good
and serviceable condition (the “cleanup”). Any such cleanup shall be in conformance with all applicable Environmental Laws. 
  
 7.2.2    Landlord. 
  
 (a) General. Except to the extent assumed by Tenant in Section 7.2.l, Landlord agrees to make all governmentally mandated
repairs, improvements and alterations to the Leased Premises, the Common Area and the balance of the Commercial Building required by any governmental entity. 
  

(b) Environmental. If required to do so by any governmental entity having jurisdiction, Landlord shall remove from the
Leased Premises and the balance of the Commercial Building all Hazardous Substances for which Landlord has an obligation to indemnify Tenant under Section 9.2.2, and shall restore the Leased Premises and balance of the Commercial Building to a
clean, safe, good and serviceable condition (the “cleanup”). Any such cleanup shall be in conformance with all applicable Environmental Laws and shall be performed so as to minimize disruption of the business of Tenant, its subtenants or
assignees. 
  
 7.3    Damage by
Casualty. 
  
 7.3.1    Repair and Restoration. Unless this Lease is terminated as provided in Article 19, if the Leased Premises are damaged by fire, the elements or other casualty, Landlord shall promptly repair all
damage and restore the Leased Premises to their condition just prior to the damage. Insurance proceeds from the insurance being carried on the Leased Premises shall be used for the repair and restoration of the Leased Premises. 
  
 7.4    Condemnation. 
  
 7.4.1    Restoration. Unless this Lease is
terminated as provided in Article 20, Landlord shall promptly restore the Commercial Building to an architectural unit as nearly comparable as practicable to the unit existing just prior to the taking or damage referred to in Article 20. The sum
paid to Landlord for the taking or damage required to fulfill Landlord’s obligation as herein contained shall be available for restoration of the Commercial Building. 
  
 7.5    Condition on Surrender. Tenant agrees that on surrendering possession at the
expiration of earlier termination of this Lease it will leave the Leased Premises in good condition, allowance being made for ordinary wear and tear, damage by fire, the elements or other casualty, or 
  

 8 

 
from defects therein, being excepted. On surrendering possession, Tenant shall not be required to restore the Leased Premises to its condition at the
commencement of the Original Terms, and Landlord agrees to accept the Leased Premises with alterations and improvements as made by Tenant. Tenant shall (i) remove all fixtures, equipment and signs referred to in Article 14 by no later than the
expiration date of this Lease or thirty (30) days after the date of earlier termination of this Lease, and (ii) replace and repair, at Tenant’s own expense, all damage to the Leased Premises caused by or resulting from such removal. Any
furniture, fixtures or equipment left after vacation of the Leased Premises by Tenant, shall become the property of Landlord and Landlord may dispose of the property in any way it deems necessary and shall have no liability to Tenant. 
  
 7.6    Mechanic’s Liens.
Neither Tenant nor Landlord shall permit any mechanic’s or materialmen’s or other lien to stand against the Leased Premises or the Commercial Building in connection with any labor, materials, or services furnished or claimed to have been
furnished. If any such lien shall be filed against the Leased Premises or Commercial Building, the party charged with causing the lien shall cause the same to be discharged; provided, however, that either party may contest any such lien so long as
enforcement thereof is stayed. 
  
 ARTICLE 8 
 COMMON AREA MAINTENANCE 
  
 8.1    Maintenance. Landlord, at Landlord’s expense, covenants to maintain the Common Area in good order,
repair and condition in compliance with the provisions of this Lease and in compliance with all laws, rules and regulations, orders and ordinances of governmental agencies having jurisdiction thereof. Such maintenance and repair obligation shall
include, without limitation, the following: 
  
 (i) Maintaining and repairing the paved surfaces in a level, smooth and evenly covered condition; 
  
 (ii) Removing all papers, debris, filth and refuse, and washing or thoroughly sweeping the Common Area to the extent reasonably necessary
to keep the Common Area in a neat, clean and orderly condition; 
  
 (iii) Placing, keeping in repair and replacing any necessary appropriate directional signs, markers and lines; 
  
 (iv) Maintaining all landscaped areas, repairing automatic sprinkler systems or water lines in the Common Area and replacing shrubs and
other landscaping as necessary; 
  
 (v) Keeping
the Common Area adequately lighted during any hours the Leased Premises are open for business, replacing all damaged or defective bulbs or fixtures, and replacing the entire Common Area lighting system with a new system that is agreed upon by
Landlord and Tenant when the existing system becomes inadequate or obsolete by then current standards; 
  

 9 

 (vi) Maintaining in full force and effect such public liability insurance on the Common
Area as required to be maintained by Landlord in accordance with Section 10.2; 
  
 (vii) Providing security service or any other service or maintenance program that is agreed upon by Tenant and Landlord to keep the Common
Area comparable to the common areas of other commercial buildings in the same county; and 
  
 (viii) Cleaning, maintaining and repairing all sidewalks. 
  
 8.2     Expenses. Tenant shall be responsible for reimbursing Landlord for a
portion of the Common Area maintenance expenses as provided in Section 8.3. Said Common Area maintenance expenses shall include only those expenses incurred by Landlord during the Term of this Lease for maintaining and repairing the Common Area as
provided in Section 8.1. Excluded from the Common Area maintenance expenses shall be the cost of any capitalizable improvements or additions to the Common Area and the cost of repairs due to faulty materials or workmanship used in the development of
the Common Area. Any repair or maintenance expense which is anticipated to be in the aggregate in excess of Five Thousand Dollars ($5,000.00) shall be submitted to Tenant for review and approval, not to be unreasonably withheld, before such expense
is incurred. The dollar limit set forth in the preceding sentence shall be increased at five (5) year intervals by agreement of Landlord and Tenant or, in the absence of agreement, then by the percentage increase in the Consumer Price Index, All
Urban Consumers, U.S. City Average, All Items, as of the date of adjustment over such index as of the first day of the preceding five (5) year period. Management or administration fees shall not exceed fifteen percent (15%) of the actual Common Area
maintenance cost as defined in Section 8.1 hereof. 
  
 8.3    Reimbursement. Subject to the limitation hereinafter set forth and provided Landlord requests reimbursement within twelve (12) months after the expense is incurred, Tenant agrees to reimburse
Landlord from time to time during the Term, but not more often than monthly, for Tenant’s Share of the actual Common Area maintenance expenses incurred by Landlord in maintaining and repairing the Common Area as provided in this Article 8.
Tenant shall reimburse Landlord for Tenant’s Share of such expenses within thirty (30) days after receipt of a statement summarizing in reasonable detail the expenses incurred and an invoice stating the amount due from Tenant. Concurrently with
such statement and invoice, Landlord shall also supply Tenant with copies of all invoices, bills, receipts and other documentation to support the summary statement. In no event shall the amount payable by Tenant under this Section 8 in any calendar
year exceed the sum of Twenty Cents ($.20) per calendar year for each square foot of the area of the Leased Premises occupied by Tenant. The dollar limit set forth in the preceding sentence shall be increased at five (5) year intervals thereafter by
agreement of Landlord and Tenant or, in the absence of agreement, then by the percentage increase in the Consumer Price Index, All Urban Consumers, U.S. City Average, All Items, as of the date of adjustment over such index as of the first day of the
preceding five (5) year period. 
  
 8.4    Late Night Light. It is agreed that the artificial lighting for the Common Areas (exclusive of any security lights or lighting required by governmental authority) shall remain on 

 

 10 

 
during all hours of darkness while a majority of the businesses in the Commercial Building are open for business, and the costs and expenses thereof shall be
included in Common Area maintenance expenses as defined in Section 8.1. 
  
 8.5    Non-Profit Basis.  Landlord shall maintain the Common Area on a non-profit basis with the intent being to keep the Common Area maintenance expenses at a reasonable minimum. 
  
 8.6    Audit.  Landlord shall
maintain complete and accurate books of account and records of the Common Area maintenance expenses, which books of account and records for each calendar year shall be maintained by Landlord for at least two (2) years after the expiration of such
calendar year. Tenant, at its sole cost, shall be entitled to have an audit made of such books of account and records by representatives of Tenant. Such audit may be made only by Tenant giving Landlord at least twenty (20) days’ prior written
notice, there shall be no more than one audit for each calendar year, and such audit must be completed within two (2) years from the expiration of the calendar year being audited. If the audit discloses that any reimbursement by Tenant for the
period audited was not correct, Tenant shall immediately pay any additional amount due Landlord as disclosed by the audit and Landlord shall immediately refund Tenant the amount of any over payment as disclosed by the audit. 
  
 ARTICLE 9 
 INDEMNIFICATION 
  
 9.1    Tenant’s Indemnification. 
  
 9.1.1    General.  Tenant agrees to defend, indemnify and hold harmless Landlord from and against all
liabilities, demands, claims, losses, damages, causes of action or judgments, and all reasonable expenses incurred in investigating or resisting the same, for injury to person, loss of life or damage to property occurring on the Leased Premises
during the Term of this Lease and arising out of Tenant’s use and occupancy, whether foreseeable or unforeseeable, or direct or indirect, or contributed to by the active or passive negligence of Landlord, its contractors, agents or employees
(except when caused by the sole negligence or willful misconduct of Landlord, its contractors, agents or employees). 
  
 9.1.2    Environmental.  Landlord acknowledges that, in the ordinary course and operation of
Tenant’s business, Tenant may bring upon the Leased Premises, use, sell and handle reasonable quantities of materials which may now or hereafter be deemed to be Hazardous Substances, but in doing so Tenant shall strictly comply with all
Environmental Laws applicable to the Leased Premises. Tenant agrees to defend, indemnify and hold harmless Landlord from and against any and all liabilities, demands, claims, losses, damages, causes of action or judgments, and all reasonable
expenses incurred in investigating or resisting the same, arising directly or indirectly from, out of, or by reason of any breach by Tenant of its obligations under the preceding sentence during the Term of this Lease. 
  

 11 

 9.2    Landlord’s Indemnification. 
  
 9.2.1    Environmental.  Landlord agrees to defend, indemnify and hold harmless Tenant from and against any and all liabilities, demands, claims, losses, damages, causes of action or judgments,
and all reasonable expenses incurred in investigating or resisting the same, arising directly or indirectly from, out of, or by reason of (i) any breach by Landlord of Section 21.1 occurring during the Term of this Lease, (ii) any Hazardous
Discharge which occurs prior to or during the Term of this Lease other than those caused by the action or omission of Tenant (including its assignees, subtenants, licensees, concessionaires, contractors and invitees), or (iii) Landlord’s
failure to provide all information, make all submissions and take all actions required by the Environmental Laws. 
  
 9.3    Indemnity Survival.  Landlord’s and Tenant’s obligations in this Article 9 to defend,
indemnify and hold harmless shall survive the expiration or earlier termination of this Lease. 
  
 ARTICLE 10 
 INSURANCE 
  
 10.1    Property Insurance.  Landlord agrees, at its own cost and expense, to
keep in effect on the Leased Premises casualty insurance, insuring the improvements against fire, an extended coverage (including “all risk” coverage) for the full replacement cost of the improvements, with deductibles in the form and
endorsements of the coverages selected by Landlord, together with, at Landlord’s option, rental value insurance against loss of rent. 
  
 10.2    Liability Insurance.  Tenant shall obtain and maintain commercial or comprehensive general liability
insurance, including coverage for contractual liability, covering their obligations under Article 9, and for personal injury, death or property damage arising from the use, occupancy, disuse or condition of the Leased Premises and its adjoining
areas or ways, including the Common Area. The limits of liability of such insurance shall be not less than One Million Dollars ($1,000,000.00) combined single limit coverage for injury to person, loss of life and damage to property arising out of
any single occurrence. The dollar limit set forth above shall be increased at five (5) year intervals thereafter by agreement of Landlord and Tenant or, in the absence of agreement, then by the percentage increase in the Consumer Price Index, All
Urban Consumers, U.S. City Average, All Items, as of the date of adjustment over such index as of the first day of the preceding five (5) year period. 
  
 10.3    Tenant’s Fire Insurance.  Tenant, at its cost, shall maintain on all its personal property,
Tenant’s improvements and alterations, in, on, or about the Leased Premises a policy of standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements in amounts satisfactory to Tenant. Proceeds from any such
policy shall be used by Tenant for the replacement of personal property or the restoration of Tenant’s improvements or alterations. Landlord shall not be liable to Tenant for any damage to Tenant or Tenant’s property from any cause. Tenant
waives all claims against Landlord for damage to person or property arising for any reason. 
  

 12 

 10.4    Insurance Carrier.  All insurance to be provided by
either Landlord or Tenant pursuant to this Article 10 shall be carried with a company, or companies, qualified to do business in the state in which the Commercial Building is located and having a general policy holder’s rating of not less than
B+ and a financial rating of six (6) or better as rated in the most current available “Best’s Key Rating Guide” and shall provide that payment for any losses covered thereunder shall be made to Landlord and Tenant as their respective
interests may appear. Each party, upon receipt of written request from the other party, shall furnish the other party with certificates evidencing the insurance required hereunder and thereafter during the Term of this Lease shall furnish the other
party with certificates evidencing extension or replacement insurance. Such policies of insurance and certificates provided by Landlord and Tenant shall provide (i) that the other party is named as an additional insured, (ii) that the named
insured’s insurance is primary and non-contributory with any insurance maintained by the other party, (iii) that the other party shall receive at least thirty (30) days’ written notice before any insurance evidenced by such policy or
certificate is reduced or terminated, and (iv) that the liability insurance policy shall apply separately to each insured party. 
  
 ARTICLE 11 
 UTILITIES 

 
 11.1    Utilities.  Tenant
agrees to pay all charges for electricity, gas, heat, trash removal, telephone and other utility services used by Tenant on the Leased Premises. Landlord shall provide Tenant with separate metering for all metered utilities. Landlord shall provide,
at Landlord’s cost, water for the Leased Premises. 
  
 ARTICLE 12 
 SEPARATION OF USES 
  
 12.1    Separation of Uses. 
  
 12.1.1    Tenant’s Concern.  Landlord recognizes Tenant’s customers’
need for adequate parking facilities in close proximity to the Leased Premises and the importance of protecting such parking facilities against unreasonable or undue use which is likely to result from long-term parking by patrons or employees of
other tenants of the Commercial Building. Landlord further recognizes Tenant’s interest in not having tenants occupying space in close proximity to the Leased Premises who create or cause excessive noise, litter or odor. 
  
 12.1.2    Landlord’s Safeguard for
Tenant.  To safeguard Tenant’s interest in parking for Tenant’s employees and customers, Landlord shall designate certain parking spaces for the exclusive use of Tenant. Such spaces shall, at Landlord’s expense, be
marked as parking for Tenant’s business only. 
  
 ARTICLE
13 
 REMODEL—COSTS 
  
 13.1    Landlord’s Improvements to Premises.  Landlord agrees that Landlord, at Landlord’s expense,
shall make improvements to the Leased Premises as set forth on Exhibit ”B” 
  

 13 

 
hereto. The improvements to be made by Landlord shall cost see Exhibit B Dollars ($See Exhibit B), which sum will be paid by Landlord;
provided, however, that Tenant agrees to pay to Landlord in reimbursement of such costs and as additional rent, an amount monthly which will fully amortize Landlord’s cost of such tenant improvements at ten percent (10%) interest amortized over
thirty-six (36) months. 
  
 ARTICLE 14 
 TENANT’S FIXTURES AND SIGNS. 
  
 14.1    Tenant’s Fixtures and Signs. Tenant may (i) install in the Leased Premises such fixtures and
equipment as Tenant deems desirable, and (ii) paint, erect or authorize signs in, on or about the Leased Premises, and all of said items shall remain Tenant’s property whether or not affixed or attached to the Leased Premises. Tenant may remove
said items from the Leased Premises at any time and shall remove all of said items from the Leased Premises as provided in Section 7.5 upon the expiration or earlier termination of said Lease. 
  
 14.2    Landlord Waiver. Tenant has
and will in the future enter into certain financing transactions, whereby Tenant will lease equipment and other personal property. Landlord hereby agrees that it will not assert against any of Tenant’s assets whether owned by Tenant or leased
from third parties any statutory or possessory liens, and that no personal property located on the Leased Premises, whether owned by Tenant or leased from third parties, shall be deemed to be fixtures. The waiver contained herein shall be binding
upon the successors and assigns of Landlord. 
  
 ARTICLE 15

 NO COVENANT TO OPERATE. 
  
 15.1    No Covenant to Operate. Landlord agrees that (i) Tenant, its subtenants or assignees shall not be
obligated to operate any particular type of business in the Leased Premises and shall have the right to discontinue whatever type of business which may exist from time to time in the Leased Premises, and (ii) Tenant makes no express or implied
covenant (1) to continuously operate any business in the Leased Premises, (2) to operate during any particular hours, or (3) to conduct its business in any particular manner. Tenant has the sole right in its unrestricted discretion to decide whether
or not to operate in the Leased Premises and in what manner to conduct operations, if any. Failure to operate a business at the Leased Premises shall not effect Tenant’s obligation for payment of rental and other charges as herein provided.

  
 ARTICLE 16 
 TRANSFER OF INTERESTS AND RIGHTS OF SUCCESSORS. 
  
 16.1    Landlord’s Transfer. In the event Landlord sells the Commercial Building and/or assigns
Landlord’s interest in this Lease and Landlord’s successor in interest assumes all of Landlord’s obligations under this Lease, Landlord shall be released from all obligations under this Lease, not accrued as of the date of such sale
or transfer, and the purchaser, at such sale or transfer or any subsequent sale or transfer of the Commercial Building, shall be deemed, without any further agreement between the parties or their successors in interest or between the parties and any
such 
  

 14 

 
purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of the Landlord under this Lease after the consummation of
such sale. 
  
 16.2    Tenant’s Attornment. Tenant shall attorn to any assignee, transferee or purchaser of Landlord’s interest in this Lease in accordance with Section 16.1 from and after the date of
notice to the Tenant of such assignment, transfer or sale in the same manner and with the same force and effect as though this Lease were made in the first instance by and between the Tenant and such assignee, transferee or purchaser. 
  
 16.3    Tenant’s Transfer.
Tenant shall have the unrestricted right to assign its interest in this Lease or sublet any portion of the Leased Premises so long as said assignee and/or subtenant continues to use the Leased Premises for purposes of operating a service center and
sales and service call center for Alpha Smart products. In the event Tenant desires to assign or sublet for a purpose other than the operation of an Alpha Smart products service center and sales and service call center, the Landlord’s prior
written consent, not to be unreasonably withheld, shall be required. If Tenant assigns this Lease, Tenant shall remain liable as a surety to Landlord for full performance of Tenant’s obligations hereunder. 
  
 16.4    Rights of Successors. Each
and all of the covenants, terms, agreements, rights and obligations of the parties under this Lease shall extend to and bind and inure to the benefit of their respective heirs, personal representatives, successors and assigns. 
  
 ARTICLE 17 
 USE OF PREMISES & EXCLUSIVE FEATURES. 
  
 17.1    Use of Premises. 
  

17.1.1    Use of Premises. Tenant shall use the Leased Premises for a service center and sales
and service call center for Alpha Smart products and all related items and/or services which are customarily now or in the future sold and provided by Alpha Smart. 
  
 ARTICLE 18 
 DEFAULT. 
  
 18.1    Tenant’s Default. If rent shall be delinquent for a period of ten (10) days after written notice of such delinquency from Landlord to Tenant, or if Tenant fails to keep, perform, and
observe any of the covenants and agreements of this Lease, and such default shall continue for a period of thirty (30) days after written notice from Landlord to Tenant, or if Tenant shall be adjudged bankrupt or insolvent, or shall be in
receivership, or if any assignment of Tenant’s property shall be made for the benefit of creditors, the Landlord shall have all the rights of a landlord under California Law, including the right to sue for rent. Landlord, at its option, without
terminating this Lease Agreement, shall have the right to re-enter the Leased Premises and sublet the whole or any part thereof, for the account of the Tenant, upon as favorable terms as are reasonably available. In the latter event, the Landlord
shall have the right to collect any rent which may thereafter become payable under such sublease and to apply the same first to the payment of any expenses incurred by 
  

 15 

 
the Landlord in dispossessing the Tenant and in subletting the Premises, and second to the payment of the rentals herein reserved and the fulfillment of
Tenant’s covenants hereunder, and the Tenant shall be liable for amounts equal to the several installments of basic rent, as they would under the terms of this Lease as the same become due, less any amounts actually received by the Landlord and
applied on account of rental as aforesaid, and discounted at the rate of ten percent (10%) per annum. 
  
 18.2    Landlord’s Default. If Landlord defaults in the performance of any covenant or agreement under this
Lease and the default continues for thirty (30) days after receipt of Tenant’s written notice specifying the default or, if the default is of a type which is not reasonably curable within thirty (30) days, if Landlord fails to commence to cure
the default within thirty (30) days after receipt of the notice or fails to diligently pursue the curing of the default to completion, Tenant, so long as the default continues, may incur any reasonable expense necessary to perform the covenant or
agreement and, if Landlord fails to reimburse Tenant for such expense within fifteen (15) days after receipt of Tenant’s written demand (which demand shall be accompanied by documentation evidencing the expense) or if Landlord fails to
reimburse Tenant for any other amount owing under this Lease within fifteen (15) days after receipt of Tenant’s written demand, Tenant may deduct the amount which Landlord has failed to reimburse from any sums payable by Tenant under this
Lease. The performance of each and every covenant and agreement by Landlord contained in this Lease shall be a condition precedent to Landlord’s right to collect any sums payable by Tenant under this Lease or to enforce this Lease. 

 
 18.3    Interest. In the event of
default by either party hereunder which continues beyond the period of time to cure such default, any amount due from the defaulting party or expended by the other party to cure the default of the defaulting party shall bear interest at the rate of
ten percent (10%) per year or the highest rate allowed by law, whichever is lower, from the date such amount was due from the defaulting party or was expended by the curing party, until paid. 
  
 18.4    Remedies Cumulative. No
remedy herein conferred upon or reserved to Landlord or Tenant shall exclude any other remedy herein or by law provided, but each shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law or in
equity or by statute. 
  
 18.5    No Waiver. The failure of Landlord or Tenant to insist in any one or more cases upon the performance of any of the provision, covenants, agreements or conditions of this Lease or to exercise
any option herein contained shall not be construed as a waiver or a relinquishment for the future of any such provision, covenant, agreement, condition or option. Receipt by Landlord of Rent or of any other payment or the acceptance by Landlord or
Tenant of performance of anything required by this Lease to be performed with knowledge of the breach of a covenant shall not be deemed a waiver of such breach. No waiver of any provision, covenant, agreement or condition of this Lease shall be
deemed to have been made unless expressed in writing and signed by the party against whom such waiver is charged. The express waiver by either Landlord or Tenant of any breach shall not operate to extinguish the covenant or condition, the breach of
which has been waived. 
  

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 18.6    Governing Law. This Lease shall be governed and enforced
by, and construed in accordance with, the laws of the State of California. 
  
 18.7    Attorney’s Fees. In the event either party hereto finds it necessary to employ legal counsel or to bring an action at law or other proceedings against the other
party to enforce any of the terms, covenants or conditions hereof, the unsuccessful party shall pay to the prevailing party a reasonable sum for attorneys’ fees. Attorneys’ fees shall include attorneys’ fees on any appeal, and in
addition a party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and the discovery, travel, and all other necessary costs incurred in such litigation. 
  
 ARTICLE 19 
 DAMAGE BY CASUALTY TERMINATION RIGHT. 
  
 19.1    Destruction Due to Risk Covered by Insurance. If during the term the Leased Premises or the Commercial
Building and other improvements in which the Leased Premises are located are totally or partially destroyed from a risk covered by the insurance described in Section 10.1 hereof, rendering the Leased Premises totally or partially inaccessible or
unuseable, Landlord shall restore the Leased Premises. 
  
 Such
destruction shall not terminate this Lease. If the existing laws do not permit the restoration, either party can terminate this Lease immediately by giving written notice thereof to the other party. 
  
 If the cost of the restoration exceeds the amount of proceeds received from
the insurance required under Section 10.1, Landlord can elect to terminate this Lease by giving notice to Tenant within fifteen (15) days after determining that the restoration cost will exceed such insurance proceeds. 
  
 19.2    Destruction Due to Risk Not Covered
by Insurance. If during the term the Leased Premises are totally or partially destroyed from a risk not covered by the insurance described in Section 10.1, rendering the Lease Premises totally or partially inaccessible or unuseable, Landlord
shall elect and shall notify Tenant of such election within thirty (30) days of the destruction as to whether Landlord will restore the Leased Premises to substantially the same condition as existed prior to the destruction. If Landlord elects to
terminate this Lease and not restore the Leased Premises, this Lease shall terminate. 
  
 ARTICLE 20 
 CONDEMNATION TERMINATION RIGHT. 
  
 20.1    Termination by Tenant. If any
portion of or interest in the Commercial Building including, without limitation, the Leased Premises or the Common Area shall be taken or damaged under any right of eminent domain or any transfer in lieu thereof, and such taking or damage consists
of twenty-five percent (25%) or more of the Leased Premises, or fifteen percent (15%) or more of the Common Area, Tenant may terminate this Lease by notice to Landlord within thirty (30) days 
  

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 after such taking or damage deprives Tenant of possession of the portion of the Leased Premises or Common Area referred
to hereinabove. Nothing contained herein shall prevent Landlord and Tenant from prosecuting claims in any condemnation proceedings for the values of their respective interests. 
  
 ARTICLE 21 
 GENERAL PROVISIONS. 
  
 21.1    Compliance With Laws. Tenant agrees not to use the Leased Premises for any unlawful purpose and agrees not to violate any law, ordinance, rule or regulation of any governmental authority
having jurisdiction of the Leased Premises. 
  
 21.2
    Interpretation. Whenever used herein, the term “including” shall be deemed to be followed by the words “without limitation.” Words used in the singular number shall include the plural,
and vice-versa, and any gender shall be deemed to include each other gender. If there is a Table of Contents attached to this Lease, such Table of Contents shall be for convenience of reference only and shall not constitute a part of this Lease.

  
 21.3    Estoppel
Certificate. Upon Landlord’s request, Tenant shall provide Landlord with an Estoppel Certificate. Said Estoppel Certificate shall be executed, acknowledged and delivered to Landlord within thirty (30) days from the date of Tenant’s
receipt of Landlord’s written request for the same. Upon Tenant’s request, Landlord shall provide Tenant with a similar Estoppel Certificate within the same time frame as set forth for Tenant’s response. 
  
 21.4    Right of Entry. At any time
during the Term, Landlord or its representatives shall have the right to enter the Leased Premises at all reasonable times during business hours, upon prior notice of not less than twenty-four (24) hours, for the purpose of inspecting the Leased
Premises, provided that such entry shall not interfere with Tenant’s use and enjoyment of the Leased Premises. During the last six (6) months of the Term, Landlord shall be permitted to affix to or keep on the Leased Premises “to let”
or “for sale” notices and will be permitted to show the Leased Premises during business hours to prospective tenants or purchasers. Showing the Leased Premises as aforesaid shall be carried out in such a manner as to entail a minimum of
interference with the business of Tenant, its assignees and subtenants. 
  
 21.5    No Joint Venture. It is not intended by this Lease to, and nothing contained in this Lease shall, create any partnership, joint venture or other joint or equity type
agreement between Landlord and Tenant. 
  
 21.6    No Third Party Beneficiaries Intended. No term or provision of this Lease is intended to be, or shall be, for the benefit of any person, firm organization, or corporation not a party hereto,
and no such other person, firm, organization or corporation shall have any right or cause of action hereunder. 
  
 21.7    Invalid Provisions. If any term or provision of this Lease or any portion of a term or provision hereof
or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision or 
  

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 portion thereof to persons or circumstances other than those as to which is held invalid or unenforceable, shall not be
affected thereby, and each term and provision of this Lease and each portion thereof shall be valid and be enforced to the fullest extent permitted by law. 
  
 21.8     Non-Disclosure. Landlord and Tenant agree that the terms of this Lease are confidential and constitute
proprietary information of the parties hereto. Each of the parties hereto agrees that such party, and its respective partners, officers, directors, and attorneys, shall not disclose the terms and conditions of this Lease to any other person without
the prior written consent of the other party hereto except pursuant to an order of a court of competent jurisdiction; provided, however, that either party may disclose the terms hereof to its lenders or prospective lenders or its respective
accountants who audit its respective financial statements or prepare its respective tax returns, to any prospective transferee of all or any portions of their respective interests hereunder (including a prospective assignee or subtenant of Tenant),
to any governmental entity, agency or person to whom disclosure is required by applicable law, regulation or duty of diligent inquiry and in connection with any action brought to enforce the terms of this Lease, on account of the breach or alleged
breach hereof or to seek a judicial determination of the rights or obligations of the parties hereunder. 
  
 21.9    Dates of Performance. In the event that any date for performance by either party of any obligation
hereunder required to be performed by such party falls on a Saturday, Sunday, nationally established holiday or state established holiday in the state where the Landlord or Tenant has its principal place of business, the time for performance of such
obligation shall be deemed extended until the next business day following such date. 
  
 21.10    Time of the Essence. Time is of the essence in this Lease and each and every term, condition and provision hereof. 
  
 21.11    Entire Agreement and
Modification. It is agreed that once this Lease is fully executed and delivered that it contains the entire agreement between the parties hereto and that, in executing it, the parties do not rely upon any statement, promise, or
representation not herein expressed and this Lease once executed and delivered shall not be modified, changed or altered in any respect except by a writing executed and delivered in the same manner as required for this Lease. 
  
 21.12    Attorney’s Fees. If
either party to this Lease becomes a party to any litigation concerning this Lease, the Leased Premises or the Commercial Building, by reason of any act or omission of the other party or its authorized representatives and not by any act or omission
of the party that becomes a party to that litigation or any act or omission of its authorized representatives, the party causing the other party to become involved in the litigation shall be liable to that party for reasonable attorney’s fees
and court costs incurred by it in the litigation. 
  
 If either
party to this Lease commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the losing party reasonable attorney’s fees, expert’s fees,
and costs of suit. 
  

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 IN WITNESS WHEREOF, Landlord and Tenant have executed this Commercial Building Lease. 

 
  
 LANDLORD: 
  
 ALPHA VISTA PROPERTIES LLC 
  
  
 By                                      
                                        
                          Dated:            
                                        
    , 2001 
             DEBRA BARRUS,
Manager 
  
  
 TENANT: 
  
 ALPHA SMART, INC. 
  
  
 By    /s/ Manish D.
Kothari                                       
                         Dated:    24
Jan                                        
    , 2001 
  

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 [MAP—LEASED PREMISES]

  

 21

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