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Exhibit 10.6    
  

 
  STANDARD OFFICE LEASE
  GENESEE POINT OFFICE BUILDING    
  

NEW GENESEE LAND COMPANY, LLC,

a Colorado limited liability company,  

 AS LANDLORD  

 HEALTHETECH, INC.,

a Delaware corporation,  

 AS TENANT  

 
 

TABLE OF CONTENTS    
  

STANDARD OFFICE LEASE  

	ARTICLE 1.	 	 	 	 
	 	LEASED PREMISES	 	1
	

ARTICLE 2.	
 	

 	
 	

 
	 	PURPOSE	 	1
	

ARTICLE 3.	
 	

 	
 	

 
	 	TERM	 	1
	

ARTICLE 4.	
 	

 	
 	

 
	 	COMPLETION OF THE PREMISES	 	2
	

ARTICLE 5.	
 	

 	
 	

 
	 	RENT	 	2
	 	Section 5.1.	 	Base Rent	 	2
	 	Section 5.2.	 	No Offsets	 	2
	 	Section 5.3.	 	Interest on Late Payments	 	2
	 	Section 5.4.	 	Late Payment and Return Check Charges	 	3
	

ARTICLE 6.	
 	

 	
 	

 
	 	ADDITIONAL RENT	 	3
	

ARTICLE 7.	
 	

 	
 	

 
	 	OPERATING COSTS	 	3
	 	Section 7.1.	 	Payment of Operating Costs	 	3
	 	Section 7.2.	 	Definition of Operating Costs	 	4
	 	Section 7.3.	 	Operating Costs Escrow	 	6
	 	Section 7.4.	 	Estimate Statement	 	6
	 	Section 7.5.	 	Audit	 	6
	 	Section 7.6.	 	Standard of Operation	 	7
	

ARTICLE 8.	
 	

 	
 	

 
	 	HOLDING OVER	 	7
	

ARTICLE 9.	
 	

 	
 	

 
	 	BUILDING SERVICES	 	7
	 	Section 9.1.	 	Standard Services	 	7
	 	Section 9.2.	 	Interruption of Standard Services	 	8
	 	Section 9.3.	 	Services Paid by Tenant	 	8
	 	Section 9.4.	 	Above-Standard Service Requirements	 	9
	 	Section 9.5.	 	Cleaning	 	9
	 	Section 9.6.	 	Parking Rental	 	9
	 	Section 9.7	 	Re-Lamping	 	10
	

ARTICLE 10.	
 	

 	
 	

 
	 	USE OF LEASED PREMISES	 	10
	 	Section 10.1	 	Use	 	10
	 	Section 10.2.	 	Prohibited Use	 	10
	 	Section 10.3	 	Hazardous Materials	 	11
	 	Section 10.4.	 	No Waste	 	12
	 	Section 10.5.	 	Protection Against Insurance Cancellation	 	12
	

ARTICLE 11.	
 	

 	
 	

 
	 	COMPLIANCE WITH LAW	 	13

	

ARTICLE 12.	
 	

 	
 	

 
	 	ALTERATIONS AND REPAIRS	 	13
	 	Section 12.1.	 	Tenant to Maintain	 	13
	 	Section 12.2.	 	Protection Against Liens	 	14
	 	Section 12.3.	 	Condition on Surrender	 	14
	 	Section 12.4.	 	Landlord's Obligations	 	14
	 	Section 12.5.	 	Damage by Tenant	 	14
	

ARTICLE 13.	
 	

 	
 	

 
	 	ABANDONMENT	 	15
	

ARTICLE 14.	
 	

 	
 	

 
	 	ASSIGNMENT AND SUBLETTING	 	15
	 	Section 14.1	 	Limitation on Assignment or Subletting	 	15
	 	Section 14.2.	 	Acceptance of Performance No Waiver	 	15
	 	Section 14.3.	 	Landlord to Approve Documents	 	16
	 	Section 14.4	 	Permitted Transferees	 	16
	

ARTICLE 15.	
 	

 	
 	

 
	 	SIGNS AND ADVERTISING	 	16
	

ARTICLE 16.	
 	

 	
 	

 
	 	DAMAGE TO PROPERTY, INJURY TO PERSONS	 	17
	 	Section 16.1	 	Tenant's Waiver of Claims	 	17
	 	Section 16.2.	 	Negligence of Third Parties	 	17
	 	Section 16.3.	 	Tenant's Property	 	17
	 	Section 16.4.	 	Tenant to Perform	 	17
	

ARTICLE 17.	
 	

 	
 	

 
	 	TENANT'S INSURANCE	 	18
	 	Section 17.1.	 	Fire and Extended Coverage	 	18
	 	Section 17.2.	 	Public Liability	 	18
	 	Section 17.3.	 	Business Interruption	 	18
	 	Section 17.4	 	Other Insurance	 	18
	 	Section 17.5.	 	Certificates	 	18
	 	Section 17.6.	 	Use of Proceeds	 	18
	

ARTICLE 18.	
 	

 	
 	

 
	 	DAMAGE OR DESTRUCTION	 	19
	 	Section 18.1.	 	Right to Terminate	 	19
	 	Section 18.2.	 	Landlord's Insurance	 	19
	

ARTICLE 19.	
 	

 	
 	

 
	 	ENTRY BY LANDLORD	 	20
	

ARTICLE 20.	
 	

 	
 	

 
	 	DEFAULT BY TENANT	 	20
	 	Section 20.1.	 	Events of Default	 	20
	 	Section 20.2	 	Remedies of Landlord	 	21
	 	Section 20.3.	 	Cumulative Remedies	 	22
	 	Section 20.4.	 	No Waiver	 	23
	 	Section 20.5.	 	Bankruptcy	 	23
	 	Section 20.6.	 	Interest on Landlord's Advances	 	23
	

ARTICLE 21.	
 	

 	
 	

 
	 	TAXES	 	23
	

ARTICLE 22.	
 	

 	
 	

 
	 	EMINENT DOMAIN	 	24

	

ARTICLE 23.	
 	

 	
 	

 
	 	SUBORDINATION TO MORTGAGES AND DEEDS OF TRUST	 	24
	 	Section 23.1.	 	Lease Subordinate to Mortgages	 	24
	 	Section 23.2.	 	Tenant's Notices	 	25
	

ARTICLE 24.	
 	

 	
 	

 
	 	ESTOPPEL CERTIFICATE	 	25
	

ARTICLE 25.	
 	

 	
 	

 
	 	WAIVER	 	25
	

ARTICLE 26.	
 	

 	
 	

 
	 	INABILITY TO PERFORM	 	25
	

ARTICLE 27.	
 	

 	
 	

 
	SUBROGATION	 	26
	

ARTICLE 28.	
 	

 	
 	

 
	 	APPENDICES	 	26
	

ARTICLE 29.	
 	

 	
 	

 
	 	SALE BY LANDLORD	 	26
	

ARTICLE 30.	
 	

 	
 	

 
	 	RIGHT OF LANDLORD TO PERFORM	 	26
	

ARTICLE 31.	
 	

 	
 	

 
	 	ATTORNEYS' FEES	 	27
	

ARTICLE 32.	
 	

 	
 	

 
	 	NOTICE	 	27
	

ARTICLE 33.	
 	

 	
 	

 
	 	SECURITY DEPOSIT	 	27
	 	Section 33.1.	 	Amount and Use	 	27
	 	Section 33.2.	 	Additional Security Deposit	 	28
	 	Section 33.3.	 	Transfer of Deposit	 	28
	

ARTICLE 34.	
 	

 	
 	

 
	 	RIGHTS RESERVED	 	28
	

ARTICLE 35.	
 	

 	
 	

 
	 	SUBSTITUTION OF SPACE (INTENTIONALLY OMITTED)	 	29
	

ARTICLE 36.	
 	

 	
 	

 
	 	REAL ESTATE BROKER	 	29
	

ARTICLE 37.	
 	

 	
 	

 
	 	MISCELLANEOUS PROVISIONS	 	30
	

ARTICLE 38.	
 	

 	
 	

 
	 	CONTINGENCY	 	31
	

APPENDIX A	
 	

 	
 	

 
	 	Leased Premises	 	(A)-1
	

APPENDIX B	
 	

 	
 	

 
	 	Legal Description of the Property	 	(B)-1
	

APPENDIX C	
 	

 	
 	

 
	 	Tenant Improvement Work Agreement	 	(C)-1

	

APPENDIX	
 	

 	
 	

 
	 	Space Plan	 	(C-1)-1
	

APPENDIX D	
 	

 	
 	

 
	 	Rules and Regulations	 	(D)-1
	

APPENDIX E	
 	

 	
 	

 
	 	Commencement Date Certificate	 	(E)-1
	

APPENDIX F	
 	

 	
 	

 
	 	Letter of Credit Term Sheet	 	(F)-1

  

 
 

STANDARD OFFICE LEASE    
  

        THIS STANDARD OFFICE LEASE (the"Lease") is made this 2nd day of October 2000 by and between
NEW GENESEE LAND COMPANY, LLC, a Colorado limited liability company, as Landlord, and HEALTHETECH, INC., a Delaware corporation, as Tenant. 

W I T N E S S E T H:  

 
 

ARTICLE 1.
  
    LEASED PREMISES    
  

        Landlord hereby leases to Tenant and Tenant hereby leases from Landlord for the term and upon and expressly subject to the covenants, conditions and terms set
forth in this Lease, Suite 300 consisting of approximately 25,624 rentable square feet (the "Leased Premises"), as is shown on the attached Appendix A, which Leased Premises are situated in
that certain building located at 523 Park Point Drive, Golden, Jefferson County, Colorado, and known as Genesee Point Office Building (the "Building"), which Building is situated on that certain
parcel of real property (the "Property") legally described in Appendix B, together with a non-exclusive right, subject to the provisions hereof, including any reasonable rules and
regulations adopted from time to time by Landlord and any easements, declarations, covenants, conditions, and restrictions now or hereafter recorded with respect to the Property, governing the use
thereof, to use all Appurtenances thereto, as hereinafter defined, designated by Landlord for the exclusive or non-exclusive use of tenants of the Building or the Building Complex, as
hereinafter defined. The common areas, including without limitation, all plazas, walkways, sidewalks, parking areas and facilities, and other facilities, areas and appurtenances of the Building, any
other buildings or the Property, as may be designated from time to time by Landlord (collectively "Appurtenances"), the Building, any other buildings now or hereinafter constructed on the Property,
and the Property are hereinafter sometimes collectively called the "Building Complex". 

 
 

ARTICLE 2.
  
    PURPOSE    
  

        The Leased Premises are to be used for general offices and for no other purpose without the prior written consent of Landlord, which consent shall
not be unreasonably withheld or delayed. 

 
 

ARTICLE 3.
  
    TERM    
  

        Subject to the provisions of the Tenant Improvement Work Agreement attached hereto and incorporated herein by reference as Appendix C (the "Work Letter"),
and unless earlier terminated as provided for herein, the term of this Lease shall be for a period of eighty-four (84) months, commencing at 12:01 a.m., Mountain Standard
Time, on January 1, 2001 (the Commencement Date") and extending until 5:00 p.m., Mountain Standard Time, December 31,
2007 (the "Primary Term"), provided, however, if the Commencement Date occurs on a day other than the first day of a calendar month, the Primary Term shall be measured from the first day of the month
next following the month in which the Commencement Date occurs. Subsequent to the Commencement Date, Landlord and Tenant shall execute a Commencement Date Certificate in the form attached hereto as
Appendix E, setting forth the exact date of the commencement and termination of the Primary Term. The Primary Term and any extensions or renewals thereof approved in writing by Landlord, shall
collectively be referred to as the "Term". 

1

 

 
 

ARTICLE 4.
  
    COMPLETION OF THE PREMISES    
  

        Landlord, subject to delays beyond its control, hereby agrees to perform its obligations with respect to the Leased Premises as set forth hereinafter and in the
Work Letter. Other than as set forth herein and in the Work Letter, Tenant shall accept the Leased Premises in its "as is" condition, and Landlord shall not be deemed to have made any representations
or warranties with respect to the suitability of the Leased Premises for Tenant's use, or otherwise, and shall have no other obligation for the completion of the Leased Premises. By taking possession
of the Leased Premises, Tenant shall be deemed to have agreed that the same is in good order, repair, and condition, and satisfactorily completed in accordance with Landlord's obligations hereunder,
subject to Landlord's obligation to complete "punch lists" items, if any, as provided for in the Work Letter. Notwithstanding the foregoing, Landlord represents and warrants that the
plumbing, electrical, heating and air conditioning systems
serving the Leased Premises shall be in good operating condition and repair and that the roof is water tight and in good condition and repair on the Commencement Date. 

 
 

ARTICLE 5.
  
    RENT    
  

        Section 5.1.    Base Rent.    Tenant agrees to pay Landlord during the entire Primary Term the sum of Three
Million, Forty-Nine Thousand, Two Hundred Fifty-Six and NO/100 U.S. Dollars ($3,049,256,00) in monthly installments as detailed below (the "Base Rent"). The first full monthly
installment of Base Rent shall be payable upon the execution hereof and each succeeding monthly installment shall be due and payable on or before the first day of each and every successive calendar
month thereafter during the Primary Term or any extensions hereof. If the Commencement Date is a date other than the first day of a calendar month, there shall be due and payable on or before such
date as Base Rent for the balance of such calendar month a sum equal to that proportion of the rent for the first full calendar month as herein provided, which the number of days from the Commencement
Date to the end of such calendar month bears to the total number of days in such month. The Base Rent schedule for the Term of the Lease is as follows: 

	Rentable Sq. Ft.

Premises
	 	Lease Year
	 	Annual

Minimum Rent
	 	Monthly

Minimum Rent

	25,624	 	1	 	$	397,172.00	 	$	33,097.67
	25,624	 	2	 	$	409,984.00	 	$	34,165.34
	25,624	 	3	 	$	422,796.00	 	$	35,233.00
	25,624	 	4	 	$	435,608.00	 	$	36,300.67
	25,624	 	5	 	$	448,420.00	 	$	37,368.34
	25,624	 	6	 	$	461,232.00	 	$	38,436.00
	25,624	 	7	 	$	474,044.00	 	$	39,503.67

        Section 5.2.    No Offsets.    The Base Rent and all other sums or charges required by this Lease to be paid by
Tenant to Landlord, all of which are herein sometimes collectively referred to as "Rent" shall be paid to Landlord without notice or demand, unless expressly provided for herein, and without deduction
or offset, in lawful money of the United States of America at the office of Landlord in the Building, or if no such office exists, to Landlord at the address provided in Article 32, or to such
other person or place as Landlord may from time to time designate in writing. 

        Section 5.3.    Interest on Late Payments.    Any Rent or other amount due from Tenant to Landlord under this
Lease that is not paid within nine (9) days after the date when due shall bear interest from the due date until the date paid at the annual rate of
eighteen percent (18%) six percent (6%) over the Prime Rate as of the due date, or the maximum rate allowed by Colorado usury laws, 

2

 

whichever
is less, provided, however, Tenant shall be entitled to only one such nine (9) day grace period in each calendar year, after which time
interest shall accrue on Rent or other amounts from the due date until the date same are paid. The payment of such interest shall not excuse or cure any default by Tenant under this
Lease. The failure to charge or collect such interest in connection with any one or more such late payments shall not constitute a waiver of Landlord's right to charge and collect such interest in
connection with any other late payments. The covenants herein to pay Rent shall be independent of any other covenant set forth in this Lease. The phrase "Prime Rate" as used in this
Lease shall mean the rate of interest quoted from time to time by the Wall Street Journal or, if such publication ceases to publish such rate, the prime rate quoted from time to time by a national
banking association selected by Landlord. 

        Section 5.4.    Late Payment and Return Check Charges.    In addition to the interest charges provided for in
the preceding Section 5.3., in the event any Rent owing hereunder is not paid within nine (9) calendar
days of the due date, Landlord and Tenant agree that Landlord will incur additional administrative expenses not herein contemplated, the exact amount of which will be difficult if not impossible to
determine. Accordingly, Tenant agrees to pay to Landlord an additional one-time late charge for each such late payment in the amount of ten percent (10%) of the amount of such late
payment. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant's default with respect to such overdue amount, nor prevent Landlord from exercising any of the
other rights and remedies under this Lease. There shall be an additional charge of Twenty Dollars ($20.00) for any check submitted by Tenant to Landlord which is returned unpaid by Tenant's bank of
depository. 

 
 

ARTICLE 6.
  
    ADDITIONAL RENT    
  

        All other sums as are required to be paid by Tenant under this Lease in addition to Base Rent, including without limitation Operating Costs as defined and
determined below in Article 7, shall be referred to as "Additional Rent". All such Additional Rent shall be deemed to be Rent and shall be payable in the manner provided and recoverable as Rent
and Landlord shall have all rights specified in this Lease against Tenant for default in payment thereof as in the case of arrears of Rent. It is the purpose and intent of Landlord and Tenant that the
return to Landlord under this Lease shall be absolutely "net". Accordingly, Tenant shall be responsible for and obligated to pay its share of all costs and expenses incurred by or on behalf of the
Landlord in connection with the operation and maintenance of the Building Complex, excepting only those costs and expenses which are expressly excluded. 

 
 

ARTICLE 7.
  
    OPERATING COSTS    
  

        Section 7.1.    Payment of Operating Costs.    Tenant shall, in addition to Base Rent, pay to Landlord its
proportionate share (the "Tenant's Proportionate Share") of all Operating Costs, as herein defined, incurred by Landlord during the Primary Term of this Lease and any extensions thereof. Such payments
shall be made to Landlord, in advance, in monthly installments based upon the estimated annual Operating Costs subject to adjustment after the end of the year on the basis of the actual Operating
Costs as determined in Section 7.4 below. Tenant's Proportionate Share shall be determined, from time to time by Landlord, by dividing the leasable area of the Leased Premises by the leasable
area of the Building Complex and multiplying the resulting quotient (to the second decimal point) by one hundred. Notwithstanding anything to the contrary herein, if Tenant causes a disproportionate
amount of Operating Costs, it shall be specially allocated a fair and equitable charge for the same and Landlord may, at its election and Tenant's cost, install separate meters to measure Tenant's
usage. 

3

 

        Section 7.2.    Definition of Operating Costs.    The term "Operating Costs" as used herein shall mean all
expenses, costs and disbursements of every kind and nature including appropriate reserves (but not replacement of capital investment items, except as hereinafter provided, nor costs specifically
billed to and paid by specific tenants) which Landlord shall pay or become obligated to pay because of or in connection with the ownership, operation and maintenance of the Building Complex, including
but not limited to, the following: 

        A.    reasonable
wages and salaries of all employees, excluding the manager, which is provided for below, directly and actually engaged in the operation, repair, replacement,
maintenance or security of the Building Complex, including taxes, insurance, other benefits and overhead related thereto (excluding executive level salaries and benefits); 

        B.    all
supplies and materials used in the operation and maintenance of the Building Complex, including holiday decorations; 

        C.    costs
of all utilities and maintenance of utility systems for the common areas of the Building
Complex, including but not limited to the cost of water, power, heating, lighting, air conditioning, ventilating, sewer and trash disposal; except for those costs billed to specific tenants; 

        D.    costs
of all third party maintenance and service agreements for the Building Complex, including, but not limited to, alarm service, janitorial service, window cleaning,
security service, elevator maintenance, grounds maintenance and heating, ventilating and air conditioning systems to the extent such agreements are not separately billed to specific tenants
or the responsibility of Tenant; 

        E.    costs
of all insurance relating to the Building Complex, including, without limitation, the cost of casualty, liability and property damage insurance applicable to the
Building Complex and Landlord's personal property used in connection therewith; 

        F.    costs
of any repairs and general maintenance to the Building Complex, or any part thereof and the costs for the operation, maintenance, repair or
replacement of the systems, facilities and equipment therein (excluding repairs and general maintenance paid by proceeds of insurance, by Tenant or by other third parties, and
alterations attributable solely to tenants of the Building Complex); 

        G.    capital
investment items, excluding costs of the original construction of the Building or Building Complex, (amortized over the useful life of such item
determined by Landlord in accordance with generally accepted accounting principles or other standard real estate accounting principles) which
reduce Operating Costs or which are required by any governmental order, including the cost of compliance with any laws affecting the Building Complex; 

        H.    professional
management fees to manage the Building Complex, including, without limitation, rental for the manager's office space and costs of supplying the manager with
necessary office equipment and storage space in the Building Complex, and any amounts directly charged to the Building Complex for the manager's salary plus benefits; 

        I.    accounting,
inspection, legal and other consultation fees or expenses of enforcing the rules and regulations of the Building Complex which are incurred in the ordinary
course of operating the Building Complex including, without limitation, fees charged by consultants retained by Landlord for services that are intended to produce a reduction in Operating Costs,
reduce the rate of increase in Operating Costs, or reasonably improve the operation, maintenance, or state of repair of the Building Complex, and any dues or other assessments charged or imposed as a
result of the inclusion of the Building Complex in any metropolitan district or property owners association or sub-association (but excluding attorneys fees incurred in
resolving disputes with other tenants other occupants, or prospective tenants or occupants of the Building Complex, collecting rents, or otherwise enforcing leases of the tenants of the building;and
excluding accounting expenses relating to the ownership entity and not relating to the ownership or operation of the Building Complex; 

4

 

        J.    costs
incurred by Landlord, or its agents, in engaging experts or other consultants to assist them in making the
computations required hereunder; 

        K.    all
real estate taxes and assessments, including without limitation special assessments, imposed upon the Building Complex by any governmental bodies or authorities, and
all charges specifically imposed in lieu of such taxes and any costs incurred in connection with appealing or contesting such assessments. The term "taxes" as used in this paragraph K shall not
include state, local or federal personal and corporate income taxes measured by the income of Landlord; estate and inheritance taxes, franchise, succession and transfer taxes; interest on taxes and
penalties resulting from failure to pay real estate taxes; and ad valorem taxes on Landlord's personal furniture and furnishings, and on Landlord's leasehold improvements to the extent that the same
exceed standard building allowances. Anything to the contrary contained in this Lease, Tenant shall not be required to pay any portion of any tax or assessment expense (i) levied
on Landlord's rental income, unless such tax or assessment expense is imposed in lieu of real property taxes; (ii) in excess of the amount which would be payable if such tax or assessment
expense were paid in installments over the longest possible term; (iii) imposed on land and improvements other than the Building Complex. 

        L.    costs
for lighting, heating and cooling, painting and cleaning the Building Complex, costs of maintenance, lighting, sanding, paving repairs, restriping, regrading and
general maintenance of parking areas, snow and ice removal, rubbish removal and landscaping; and 

        M.  costs
of licensing, permits, service and usage charges, costs of compliance with all rules and regulations and orders of governmental authorities pertaining to the
Building Complex, including those related to engineering and environmental issues, air pollution control and monitoring air quality, and any costs of any environmental clean-up undertaken
by Landlord; and 

        N.    a
fee equal to fifteen percent (15%) of the total of the foregoing Operating Costs, excluding insurance, taxes and management fees, to compensate Landlord for its
administrative and overhead expenses, so long as the inclusion of such fee does not result in the Operating Costs for the Building Complex exceeding comparable Operating Costs for a
commercially competitive complex of similar characteristics in the Denver Metropolitan area. 

        Notwithstanding
anything to the contrary contained herein, Operating Costs shall expressly exclude the following: 

        (1)  Costs
of maintenance and repair reimbursed by insurance proceeds; 

        (2)  Alterations
or other specific costs attributable solely to other tenant's space in the Building which under the terms of the
respective lease is such tenant's responsibility; 

        (3)  Landlord's
income taxes, excess profit taxes, franchise taxes or similar taxes on Landlord's business; 

        (4)  Leasing
commissions, advertising and marketing expenses, tenant finish for other tenants of the Building Complex, costs of
preparing leases, and other costs of Landlord related substantially to leasing space for other tenants in the Building Complex; 

        (5)  Interest
on debt or amortization payments on any mortgages or deeds of trust, ground lease rent or other charges or expenses
in connection with the financing or refinancing of the Building Complex or penalties or fines charged in connection therewith; 

        (6)  Landlord's
costs in enforcing leases for other tenants in the Building Complex including without limitation, all legal fees,
costs and expenses to collect rent arrearages and recover possession; 

        (7)  Any
charge for depreciation of the Building or amortization of capital equipment except as expressly provided for above in
7.2(G); and 

5

 

        (8)  Capital
investment items, except as expressly provided above in 7.2(G); 

        (9)  The
cost of any repair made by Landlord because of the total or partial destruction of the Building or the condemnation of a
portion of the Building; 

        (10) The
cost of any items for which Landlord is reimbursed by insurance or otherwise compensated by parties other than tenants of
the Building; 

        (11) Any
operating expense representing an amount paid to a related corporation, entity, or person which is in excess of the
amount which would be paid in the absence of such relationship; 

        (12) The
cost of overtime except in the case of an emergency or other expense to Landlord in curing its defaults or performing
work expressly provided in this or other Lease to be borne at Landlord's expense; 

        (13) Costs
incurred by Landlord due to the violation by Landlord of the terms and conditions of any lease of space in the
Building; 

        (14) Other
expenses not considered normal and customary maintenance or operation expenses according to GAAP;
and 

        (15) Landlord's
general corporate overhead and general and administrative expenses other than the fee described in
Section 7.2(M) (N) above. 

        (16) Costs
to repair any casualty in excess of reasonable
Insurance deductibles in excess of those that are normal and customary. 

        Section 7.3.    Operating Costs Escrow.    At the same time that Tenant pays Base Rent each month, Tenant will
pay to Landlord in escrow an amount equal to one-twelfth (1/12) of Landlord's reasonable estimate of
Operating Costs for the calendar year in which the payment is made, as provided for in Section 7.4 below. 

        Section 7.4.    Estimate Statement.    Landlord shall provide Tenant with a yearly statement setting forth
Landlord's reasonable estimate of the Operating Costs ("Estimate Statement"), including, either separately or together with the other Operating Expenses, an estimate of taxes and insurance for the
next calendar year, which such Estimate Statement may be revised from time to time as is determined reasonably necessary by the Landlord but no more than one time for every six (6) month period
under this Lease. Landlord shall furnish the first Estimate Statement on or before the Commencement Date and thereafter within ninety (90) days after the close of the calendar year or as soon
thereafter as is reasonably possible. Until a new Estimate Statement is provided, Tenant shall continue to pay monthly estimates in the manner set forth above based upon the previous Estimate
Statement. Landlord shall, within a reasonable period of time not to exceed one hundred twenty (120) days after each calendar year, provide Tenant with a reconciliation statement comparing the
Operating Costs paid by Tenant with Landlord's actual expenses for such calendar year. In the event such reconciliation statement reveals an underpayment of Operating Costs, Tenant shall, within
thirty (30) days, pay to Landlord the amount of such underpayment. If, on the other hand, the reconciliation statement reveals an overpayment, Landlord shall immediately refund the amount of
such overpayment to Tenant. Provided, however, no refunds in Operating Costs or amounts escrowed hereunder shall be paid to Tenant if Tenant is in default of any of its obligations under this Lease
until such default is cured. The failure of Landlord to submit statements provided for herein shall not relieve Tenant of its obligation to pay its proportionate share of
Operating Costs. 

        Section 7.5.    Audit.    Provided Tenant is not in default under this Lease beyond any
applicable cure periods, Tenant, at its sole expense, shall have the right at all reasonable times during Landlord's normal business hours, and upon a minimum of fourteen
(14) calendar days written notice, to audit Landlord's books and records relating to this Lease at a location designated by Landlord. All such 

6

 

audits shall be performed by a national or regional company with experience in performing such audits. Audit requests shall be limited to the immediately preceding three (3) calendar years,
and the year in which the Base Rent is calculated if such year is not within the said three (3) year period. No audit may be conducted for a calendar year, or portion thereof, which falls
outside the Term of this Lease. Notwithstanding any of the foregoing, if an audit has previously been conducted for a particular calendar year by this, or any other tenant, Tenant
shall accept a copy of the prior audit in lieu of conducting a separate audit. If such audit discloses an overstatement by Landlord, then Landlord shall immediately refund such
overage to Tenant. If, on the other hand, the audit discloses an understatement, Tenant shall immediately pay to Landlord within ten
(10) days after completion, the additional amounts due. 

        Section 7.6.    Standard of Operation.    Landlord agrees that during the Term of this Lease the Building
Complex shall be operated in a reasonable and prudent manner as a suburban office building and that all costs and expenses (including salaries and wages) includable in Operating Costs shall be
comparable to the generally prevailing costs which would then be paid or incurred therefor by a reasonably prudent operator of a similar office building in the marketplace generally similar to the
Building Complex as reasonably determined by Landlord. 

 
 

ARTICLE 8.
  
    HOLDING OVER    
  

        Should Tenant hold over after the termination of this Lease, whether such termination occurs by lapse of time or otherwise, Tenant shall become a tenant from
day-to-day upon each and all of the terms herein provided as may be applicable to such a tenancy, and any such tenancy shall not constitute an extension of this Lease;
provided, however, during such period as a tenant from day-to-day, Tenant shall pay all Additional Rent therefor, together with Base Rent at a rate equal to one hundred fifty
percent (150%) of the Base Rent which was payable for the month immediately preceding the date of termination of this Lease prorated for each day that Tenant holds over,
and, in addition, Tenant shall reimburse Landlord for all damages (consequential as well as direct) sustained by Landlord by reason of Tenant's occupying the Leased Premises past the termination date.
Alternatively, at the election of Landlord and expressed in a written notice to Tenant and not otherwise, such retention of possession past the termination date shall constitute a
month-to-month tenancy upon each and all of the terms herein provided as may be applicable to such month-to-month tenancy; provided, however, during
such period as a tenant from month-to-month, Tenant shall pay Base Rent at a rate equal to one hundred fifty percent (150%) of the Base Rent which was payable for the month
immediately preceding the date of termination of this Lease. The provisions of this Article 8 shall not exclude nor waive Landlord's right of re-entry or any other right or remedy
hereunder. 

 
 

ARTICLE 9.
  
    BUILDING SERVICES    
  

        Section 9.1.    Standard Services.    Landlord agrees to furnish to the Building,
excluding including the Leased Premises during regular business hours from 7:00 A.M. to 7:00 P.M. Mondays through Fridays and from
8:00 A.M. to 1:00 P.M. Saturdays, except for holidays as the same are determined by Landlord, and subject to the rules and regulations of the Building, heat and air conditioning, which
in Landlord's judgment is necessary to provide a reasonably comfortable environment for the use and occupancy of the Building Common Areas,
excluding and the Leased Premises, and, if necessary, passenger elevator service and, subject to scheduling by Landlord, freight elevator service,
if applicable. Landlord shall also furnish: (i) 110 volt, 20 ampere sufficient electric current to be supplied for lighting
the Common Areas and Leased Premises and public halls, and for the operation all equipment serving the Building and
Common Areas of ordinary office equipment, exclusive of heavy-duty equipment, computers, 

7

 

copying
equipment, or comparable equipment; (ii) janitorial and cleaning services for the Common Areas which in Landlord's
judgment is necessary to provide a reasonably clean environment; and (iii) domestic water for the Common Areas, in reasonable quantity. Elevator service, if any,
shall mean service by non-attended automatic elevators. Landlord shall also furnish, at rates set from time to time, heating and air conditioning at such other times as are not provided
for herein, provided Tenant gives Landlord not less than forty-eight (48) hours written notice of Tenant's needs for such additional heating or air conditioning. Landlord shall also, at said
times, maintain and keep lighted the common stairs, entries, and toilet rooms in the Building that would reasonably be subject to use by Tenant, its agents and employees during other than regular
business hours. Landlord also has the right to charge Tenant for energy costs incurred because of Tenant's above standard service usage or by reason of usage of the Leased Premises or the Building
Common Areas during other than regular business hours. 

        Section 9.2.    Interruption of Standard Services.    Tenant agrees that Landlord shall not be liable for
failure to supply any heating, air conditioning, elevator, janitorial services, electric current, or any other service described in Section 9.1 above during any period when Landlord uses
reasonable diligence to restore or to supply such services or electric current, it being further agreed that Landlord reserves the right to temporarily discontinue such services or any of them, or
electric current at such times as may be necessary by reason of accident, unavailability of employees, repairs, alterations, or improvements, or whenever by reason of strikes, lockouts, riots, acts of
God, or any other happening or occurrence beyond the reasonable control of Landlord. If Landlord, despite commercially reasonable efforts, is unable to furnish such
services or electric current, Landlord shall not be liable for damages to persons or property for any such discontinuance, nor shall such discontinuance in any way be construed as a constructive or
actual eviction of Tenant or cause an abatement of rent or operate to release Tenant from any of Tenant's obligations hereunder. Landlord's obligation to furnish services or electric current shall be
conditioned upon the availability of adequate energy sources from the public utility companies then serving the Building Complex. Landlord shall have the right to reduce heating, cooling, or lighting
within the Leased Premises and in the public areas in the Building Complex as required by any mandatory or voluntary fuel or energy-saving program. Tenant agrees to, at its expense,
comply with any such program with respect to services supplied to the Leased Premises. Landlord shall have the right to enter upon the Leased Premises at all reasonable times
upon twenty-four (24) hours prior written notice (except in case of an emergency for which no notice shall be
required) in order to make such any necessary repairs, alterations, and adjustments to any of the
systems, facilities, or equipment serving the Building or the Leased Premises. as shall be necessary in order to comply with the provisions of any voluntary fuel or
energy-saving program or any mandatory statute, regulation, or program. 

        Section 9.3.    Services Paid by Tenant.    In addition to its responsibility for payment of
Operating Costs, Tenant shall pay the costs of electricity, telephone services and janitorial services. supplying all services supplied to the Leased
Premises., including the costs of all utilities including electricity, telephone services, HVAC and janitorial services. Tenant shall separately
arrange with the applicable local public authorities, or utilities or private companies, as the case may be, for the furnishing of
and payment for all telephone such services as may be required by Tenant in the use of the Leased Premises. Tenant shall directly
pay for the costs of such telephone services, including the establishment, and connection
and metering thereof, at the rates charged for such services the
same by said authority, utility or company, and the failure of Tenant to obtain or to continue to receive such services for any reason whatsoever shall not
relieve Tenant of any of its obligations under this Lease. Tenant's Proportionate Share of Operating Costs shall not include any charges to provide said services directly to other
tenants in the Building, but shall include said charges as are for providing those services to the Common Areas
and for the maintenance, repair or replacement of the systems, facilities and equipment serving the Building, including the Leased Premises, subject to the provisions of Section 7.2. Landlord
agrees that all such utilities (including electrical current at 400 amps of power at 277/480 volt, 3 phase) are currently existing and capable of being supplied or
applied to the Leased Premises for 

8

 

reasonable
use as general office space subject only to activation by Tenant with the applicable utility provider. 

        Landlord
reserves the right to require Tenant to separately pay for other services including gas and HVAC consistent with the provisions of
Section 9.4. 

        Section 9.4.    Above-Standard Service Requirements.    Tenant shall be responsible for, and
indemnifies Landlord from all costs of whatever nature caused by its use of any above-standard services (whether provided by Landlord or separately metered,)including excess electricity, water and
other energy beyond what is reasonably necessary for general office use. If heat-generating machines or equipment, including telephone equipment, cause the temperature in
the Leased Premises, or any part thereof, to exceed the temperatures the Building's air conditioning system would be able to maintain in such Leased Premises the
Building Complex were it not for such heat generating equipment then, Landlord reserves the right to install supplementary air conditioning units in the Leased
Premises, and the cost thereof, including without limitation the cost of installation and the cost of operation and maintenance thereof, shall be paid by Tenant to Landlord upon demand by Landlord
provided that Landlord has given Tenant ten (10) days prior written notice to cause its heat-generating equipment to be cooled so as to restore the temperature in the
Leased Premises Building Complex, together with an estimate for the supplementary air conditioning units. Tenant shall not, without the written
consent of Landlord, use any apparatus or device which will in any way increase the amount of electricity or water or other energy not separately
metered which Landlord determines to be reasonable for use of the Leased Premises as general office space. nor connect with electric current (except through existing
electrical outlets in the Leased Premises) or water pipes any apparatus or device for the purposes of using electric current, water, or any other energy. If Tenant shall require
electric current, water, or any other energy not separately metered in excess of that which is respectively obtainable from existing
electrical outlets or water pipes, and which is, in Landlord's opinion, above normal for use of the Leased Premises as general office space, Tenant shall first
procure the written consent of Landlord, which Landlord may not unreasonably refuse. If Landlord consents to such excess electric, water, or other energy
requirements, Tenant shall, on demand, pay all costs reasonably attributable thereto including the cost of meter service and installation of facilities necessary to
measure and/or furnish such excess capacity. Tenant shall also pay the entire cost of such additional electricity, water, or other energy
used., including, without limitation, the operation of heavy-duty accounting equipment and copy equipment, computer equipment, and the operation of ordinary office
equipment in such numbers that more electric current is required than is necessary for normal business office use as determined by Landlord. 

        Section 9.5.    Cleaning.    Tenant shall not provide any The
janitorial, cleaning or other services without Landlord's written consent, and then only provided to the Leased
Premises by Tenant shall be subject to the reasonable supervision of Landlord at Tenant's sole responsibility and cost, and by a
janitorial or cleaning and shall be provided by contractors or employees at all times
reasonably satisfactory to Landlord. 

        Section 9.6.    Parking Rental.    Tenant shall be provided non-exclusive surface parking in the
Building Complex's parking lots at a ratio of five (5) per 1,000 rentable square feet of office space leased. Based upon leasing 23,824 rentable square feet, this ratio equates to 119 spaces,
all of which will be provided at no expense to Tenant during the Primary Term of this Lease. Of such spaces, Tenant shall be entitled to have 18 covered parking to be provided at the
monthly rate of $45.00 per space per month for months 1 through 36 of the Lease Term, and $52.00 per space per month for months 37 through 84 of the Lease Term. Notwithstanding the foregoing, subject
to the following conditions, Tenant shall be allowed the right to have three (3) of the 119 spaces provided herein assigned as its visitor parking. Provided, however, if Landlord reasonably
determines that Tenant is not sufficiently utilizing said three (3) spaces as visitor parking, then, upon thirty (30) days notice from Landlord, Tenant's rights to have the same assigned
shall terminate and all 119 of Tenant's parking spaces shall be 

9

 

on
a non-exclusive basis. Landlord reserves the right to temporarily eliminate any such parking for construction, maintenance and repair and replacement of
buildings and improvements in the Building Complex. 

        Section 9.7    Re-Lamping.    Landlord shall have the exclusive right and
obligation to make any replacement of electric light bulbs, fluorescent tubes and ballasts in the Building Complex throughout the Term of this Lease. Landlord may adopt a system of
relamping and reballasting periodically on a group basis in accordance with good management practice. 

 
 

ARTICLE 10.
  
    USE OF LEASED PREMISES    
  

        Section 10.1    Use.    The Leased Premises shall not be used other than for the purpose set forth in
Article 2 of this Lease. Landlord represents for the benefit of Tenant that the Leased Premises is zoned for general office use. The purpose for which the Leased
Premises are used shall at all times comply with
all applicable laws, ordinances, regulations, or other governmental ordinances from time to time in existence and any easements, declarations, covenants, conditions, and restrictions now or hereafter
recorded with respect to the Property. The Rules and Regulations attached hereto as Appendix D, as well as additional rules and regulations as may be hereinafter adopted from time to time by
Landlord for the safety, care and cleanliness of the Leased Premises and the Building Complex and the preservation of good order thereon, are expressly made a part hereof, and Tenant agrees to obey
all such Rules and Regulations and any reasonable modifications thereto adopted by Landlord from time to time. No Rules and Regulations adopted by Landlord shall unreasonably interfere
with Tenant's use and occupancy of the Leased Premises, materially increase Tenant's obligations hereunder, or materially diminish Tenant's rights hereunder. In the event there is any conflict between
this Lease and such additional Rules and Regulations, the terms hereof shall prevail. Tenant further agrees that it shall not use the Leased Premises in violation of any exclusive right
of use granted by the Landlord to any other tenant in the Building Complex granted to another tenant prior to the date hereof of which Tenant has prior notice. 

        Section 10.2.    Prohibited Use.    The Leased Premises shall not be used for any improper or unlawful purpose,
or for the carrying on of any barter, trade, or exchange of goods, or sales through promotional give-away gimmicks, or any business involving the sale of second-hand goods,
insurance salvage stock, or fire sale stock, and shall not be used for any auction or pawnshop business, any fire sale, bankruptcy sale, going-out-of-business sale,
moving sale, bulk sale, or any other business which, because of merchandising methods or otherwise, would tend to lower the first-class character of the Building Complex. Tenant agrees that it will
not store, do or permit anything to be done in or about the Leased Premises, nor keep, use, sell, or offer for sale in or upon the Leased Premises any article which may be prohibited by any insurance
policy in force from time to time covering the Building Complex or which would cause the cancellation of any such insurance policies. In the event Tenant's occupancy or conduct of business in or on
the Leased Premises, whether or not Landlord has consented to the same, results in any increase in premiums for the insurance carried from time to time by Landlord with respect to the Building
Complex, Tenant shall pay any such increase in premiums as Rent within ten (10) calendar days after bills for such additional premiums shall be rendered by Landlord. In determining whether
increased premiums are a result of Tenant's use or occupancy of the Leased Premises, a schedule issued by the organization computing the insurance rate on the Building Complex showing the various
components of such rate, shall be conclusive evidence of the several items and charges which make up such rate. Tenant shall promptly comply with all reasonable requirements of the insurance authority
or of any insurer now or hereafter in effect relating to the Leased Premises; provided that Tenant shall not be required to construct any capital improvements in order to
effect 

10

 

such
compliance unless such improvement is required due to Tenant's particular use of the Leased Premises. 

        Section 10.3    Hazardous Materials.    

        A.    Tenant
warrants, covenants and agrees to conduct its business and operations on and from the Leased Premises in strict compliance and accordance with all federal, state
and local environmental laws, regulations, executive orders, ordinances and directives now in force or which may hereafter be in force, including, but not limited to, the following: Clean Air Act;
Clean Water Act; Resource Conservation and Recovery Act; Toxic Substances Control Act; Hazardous Materials Transportation Act; Comprehensive Environmental Response, Compensation and Liability Act;
Emergency Planning and Community Right to Know Act; and all state law counterparts, including, without limitation, the Colorado Hazardous Waste Management Act (collectively referred to as
"Environmental Laws"), and any amendments to any such Environmental Laws, and not to cause, suffer or permit any damage or impairment to the health or safety
or comfort of any person or to the environment at or on the Leased Premises and, to the extent the same is within Tenant's control,
the surrounding property, including, but not limited to, damage or threatened damage to the soil, air, surface or groundwater resources at the Leased Premises
and or, to the extent the same is within Tenant's control, on the surrounding property, nor cause,
suffer allow to be suffered or permit any condition constituting a nuisance or violation of or resulting in liability under any
Environmental Laws. Except for such as are a part of the ordinary course of Tenant's business and which are used in compliance with all Environmental Laws and have been approved in writing by
Landlord, Tenant shall not cause or allow anyone else to cause any Hazardous Materials, as herein defined, to be used, generated, stored, brought onto, or disposed of on or about the Leased Premises
or the Building Complex without the prior written consent of Landlord, which consent can be withheld at the sole discretion of Landlord, and may be revoked at any time. Tenant shall provide Landlord
with immediate notice of any violation of its Environmental Obligations or of any spill, release or discharge of any Hazardous Materials at or affecting the Leased Premises or the Building Complex.
For purposes of this Lease, the term "Hazardous Materials" shall mean any hazardous or toxic substance, material or waste which is regulated or becomes regulated under any applicable Environmental
Laws. The foregoing obligations of Tenant shall hereinafter collectively be referred to as the "Environmental Obligations." Tenant shall assume sole and full responsibility for and shall remedy at its
sole expense all violations by Tenant of such Environmental Obligations. 

        B.    At
the commencement of this Lease and on January 1 of each year thereafter throughout the Term of this Lease, and on January 1 of the year after termination
of this Lease, Tenant shall disclose to Landlord the names and amounts of all Hazardous Materials which were stored, used or disposed of on the Leased Premises in the preceding Lease year and the
names and amounts of all Hazardous Materials which Tenant intends, subject to Landlord's approval, to store, use or dispose of on the Leased Premises in the Lease year just then beginning. 

        C.    Landlord,
and its agents, shall have the right, but not the duty, to inspect the Leased Premises and conduct tests and investigations at any time upon
reasonable prior notice of at least forty-eight (48) hours (except in the case of an emergency) to determine whether Tenant is complying with the terms of this Lease. If Landlord
determines from any such inspection, tests or investigations that a violation of Tenant's Environmental Obligations exists or existed with respect to Hazardous Materials, Tenant shall pay to Landlord,
upon demand and in addition to all other damages provided for herein, all of Landlord's costs of such inspection, tests and investigations. 

        D.    In
the event of any violation of, or failure Tenant violates or fails to comply with, any of the
Environmental Obligations, Tenant agrees, at its sole cost and expense, promptly to remedy and correct such violation or failure, including all required or appropriate clean up, clean
up-related activities and
all other appropriate remedial action. Tenant covenants and agrees to protect, indemnify and hold Landlord harmless from and against any and all obligations, claims, including any investigations, 

11

 

administrative claims and claims for injunctive relief, loss, cost, damage, expense or liability, including, without limitation, any liability arising under any Environmental Laws, plus reasonable
attorneys' fees, incurred by or asserted against Landlord resulting from any failure of Tenant to comply with the Environmental Obligations. Landlord shall have the right to defend itself in any
action, suit or proceeding commenced against Landlord as a result of Tenant's violation of or failure to comply with the Environmental Obligations, with attorneys and, as necessary, technical
consultants chosen by Landlord, and Tenant agrees to pay to Landlord all reasonable attorneys' fees, consultant fees, and other costs in connection therewith incurred by Landlord. In addition,
Landlord shall have the right, but not the obligation, to cure Tenant's violation of or failure to comply with the Environmental Obligations, at Tenant's sole expense, and Tenant shall promptly, upon
receipt of demand therefor, reimburse Landlord for all amounts expended in connection with such cure. Landlord shall use reasonable efforts to minimize interference with Tenant's business but shall
not be liable for any interference caused thereby provided that Landlord acts in a commercially reasonable manner. Neither the written consent by Landlord to the use, generation, storage or disposal
of Hazardous Materials, nor the compliance by Tenant with all Environmental Laws shall excuse Tenant from its indemnification of Landlord hereunder, which such indemnification shall survive the
termination of this Lease. 

        E.    Landlord
covenants and agrees to protect, indemnify and hold Tenant harmless from and against any and all obligations, claims, including any investigations,
administrative claims and claims for injunctive relief, loss, cost, damage expense or liability, including without limitation any liability arising under any Environmental Laws, plus reasonable
attorneys fees, incurred by or asserted against Tenant resulting from any failure of Landlord to comply with any Environmental Laws or regulation, with respect to the Leased Premises prior to the term
of this Lease. 

        Section 10.4.    No Waste.    Tenant shall not commit, suffer, or permit any waste, damage, disfiguration, or
injury to the Leased Premises or, to the extent the same is within Tenant's control, to the Building Complex, or permit or suffer any overloading of the floors thereof,
and shall not place any safes, heavy business machinery, computers, data processing machines, or other heavy things in the Leased Premises or, to the extent the same is within Tenant's
control, to the Building Complex without first obtaining the written consent of Landlord and, if required by Landlord, of Landlord's architect, and shall not use or permit to be used
any part of the Leased Premises or, to the extent the same is within Tenant's control, the Building Complex for any dangerous, noxious, or offensive trade or business, and
shall not cause or permit any nuisance, or unreasonable noise or action in, at, or on the Leased Premises. 

        Section 10.5.    Protection Against Insurance Cancellation.    If any insurance policy on the Building Complex
or any part thereof shall be canceled or if cancellation shall be threatened, or if the coverage thereunder shall be reduced or be threatened to be reduced, in any way by reason of the use or
occupation of the Leased Premises or any part thereof by Tenant, any assignee or subtenant of Tenant, or by anyone permitted by Tenant to be upon the Leased Premises, and if Tenant fails to remedy the
condition giving rise to the cancellation, threatened cancellation, reduction, or threatened reduction of coverage within forty-eight (48) hours after written notice thereof, Landlord may, at
its option, enter upon the Leased Premises and attempt to remedy such condition, and Tenant shall forthwith pay the cost thereof to Landlord as Additional Rent, including without limitation,
reasonable attorneys' fees
incurred by Landlord. Landlord shall not be liable for any damage or injury caused to any property of Tenant or of others located on the Leased Premises as a result of such entry. In the event that
Landlord shall be unable to remedy such condition, then Landlord shall have all of the remedies provided for in this Lease in the event of a default by Tenant. Notwithstanding the foregoing provisions
of this Article 10, if Tenant fails to remedy as aforesaid, Tenant shall be in default of its obligation hereunder, and Landlord shall have no obligation to attempt to remedy, and Landlord may
pursue all of its remedies provided for in this Lease in the event of a default by Tenant. 

12

 

 
 

ARTICLE 11.
  
    COMPLIANCE WITH LAW    
  

        Tenant shall not use the Leased Premises or permit anything to be done in or about the Leased Premises which will in any way conflict with any law, statute,
ordinance, court or administrative order, or governmental rule or regulation, including without limitation, the Americans with Disabilities Act, now in force or which may hereafter be entered,
enacted, promulgated or amended. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances, court or administrative orders, and governmental rules, regulations,
or requirements now in force or which may hereafter be in force, and with the requirements of any board of fire underwriters or other similar body now or hereafter constituted relating to or affecting
the condition use, or occupancy of the Leased Premises, excluding structural changes not related to or affected by Tenant's improvements or acts. The judgment of any court of competent jurisdiction or
the admission of Tenant in an action against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any law, statute, ordinance, or governmental rule, regulation, or requirement,
shall be conclusive of that fact as between Landlord and Tenant. Tenant shall not be required to construct any capital improvements in order to effect compliance, unless such improvement
is required due to Tenant's particular use of the Leased Premises. 

 
 

ARTICLE 12.
  
    ALTERATIONS AND REPAIRS    
  

        Section 12.1. Tenant to Maintain. Except for those matters which are the responsibility of Landlord under
Section 12.4 below, Tenant shall, at its sole expense, keep the Leased Premises including the office front, doors and windows and all improvements and betterments thereto in good repair and
tenantable condition during the Term of this Lease. Tenant shall not, without the prior written consent of Landlord, make any alterations, improvements, or additions to the Leased Premises,
with an annual cost exceeding $10,000, including, but not limited to, partitions, wall coverings, floor coverings, and special lighting installations. In the event that
Tenant desires to make any alterations, improvements, or additions, costing in excess of $10,000 in the aggregate, Tenant shall first submit to Landlord written plans and
specifications therefor and obtain Landlord's written approval thereof prior to commencing any such work. All alterations, improvements, or additions, whether temporary or permanent in character, made
by Landlord or Tenant in or upon the Leased Premises shall become Landlord's
property and shall remain upon the Leased Premises at the termination of this Lease by lapse of time or otherwise, without compensation to Tenant (excepting only Tenant's movable office furniture,
trade fixtures, and office and professional equipment); provided, however, that Landlord shall have the right upon written notice to require Tenant to forthwith remove such alterations, improvements,
or additions at Tenant's cost upon the termination of this Lease, and to, at Tenant's cost, repair any damage caused to the Leased Premises or the Building Complex as a result of any such removal and
restore the Leased Premises to its condition prior to the installation of such alterations, improvements or additions. In the event Tenant fails to perform the repairs required hereunder, Landlord
shall be entitled to perform the same and recover from Tenant all costs and expenses thereof, including attorneys fees. The work necessary to make any repairs required pursuant to this
Section 12, or to make any alterations, improvements, or additions to the Leased Premises to which Landlord may consent pursuant hereto, shall be at Tenant's cost and done by employees or
contractors employed by Landlord, or with Landlord's consent in writing given prior to the letting of a contract, by contractors employed by Tenant, but in each case, only under written contract
approved in writing by Landlord, and subject to all conditions Landlord may impose. Tenant shall promptly pay to Landlord or to Tenant's contractors, as the case may be, when due, the cost of all such
work and of all decorating or redecorating required by reason thereof, and upon completion, deliver to Landlord, if payment is made directly to Tenant's contractors, evidence of payment and waivers of
all liens for labor, services, or materials, and furthermore, Tenant shall defend and hold Landlord, the Leased Premises and the 

13

 

Building Complex harmless from all costs, damages, liens for labor, services or materials and other expenses relating to such work, and shall defend and hold Landlord harmless from all costs,
damages, liens, and expenses related thereto, including without limitation reasonable attorneys' fees. In the event that Landlord incurs any expenses in the removal of trash, or the cleaning of
elevators, public corridors, loading areas, and other common areas as a result of Tenant's contractors' work, then Tenant agrees it shall reimburse Landlord within seven (7) calendar days of
the date of billing. 

        Section 12.2.    Protection Against Liens.    At least five (5) calendar days prior to the commencement
of any work on the Leased Premises, Tenant shall notify Landlord of the names and addresses of the persons supplying labor and materials for the proposed work so that Landlord may avail itself of the
provisions of the Colorado Revised Statutes regulating such matters. During the progress of any such work on the Leased Premises, Landlord or its representatives shall have the right to go upon and
inspect the Leased Premises at all reasonable times, and shall have the right to post and keep posted thereon notices such as those provided for by Section 38-22-105(2)
(C.R.S. 1973), or any other applicable statute, or to take any further action which Landlord may deem to be proper for the protection of Landlord's interest in the Leased Premises and the Building
Complex. 

        Section 12.3.    Condition on Surrender.    Tenant shall, at the termination of this Lease, surrender the
Leased Premises to Landlord in as good condition and repair as reasonable and proper use thereof will permit, loss by ordinary wear and tear, fire, and other insured
against casualty required to be insured against hereunder, and hazardous materials not placed thereon by Tenant excepted. In the event the Leased
Premises are not surrendered in such condition, Tenant shall be responsible to Landlord for all costs and expenses of repair and replacement to return the Leased Premises to such condition, and, in
addition, Tenant shall pay Landlord as damages an amount equal to the sum of all Rent that would be due under this Lease had the Lease been extended for the period of time reasonably necessary to
enable Landlord to make the repairs and replacements. 

        Section 12.4.    Landlord's Obligations.    Subject to Section 12.5 regarding damage caused by Tenant,
and the provisions of Article 7 regarding Tenant's obligation for payment of Operating Costs, Landlord shall repair and maintain all of the Appurtenances and the exterior and structural
portions of the Building, including the exterior wall and roof but excluding the office front, doors and windows and shall, subject to Tenant's obligations under
section 9.3, operate, maintain, repair and replace the systems, facilities and equipment necessary for the proper operation of the Building and for the provision of Landlord's
services under Article 9 hereof. Landlord shall not be liable for any failure to make such repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after
written notice of the need for such repairs or maintenance is given to Landlord by Tenant. There shall be no abatement of Rent by reason of any injury to or interference with Tenant's business arising
from the making of any repairs, alterations, or improvements in or to any portion of the Building Complex or the Leased Premises or in or to fixtures, appurtenances and equipment therein. Tenant
waives the right to make repairs at Landlord's expense under any law, statute or ordinance now or hereinafter in effect. 

        Section 12.5.    Damage by Tenant.    If the Building, elevators, boilers, engines, pipes, and other apparatus,
or members or elements of the Building (or any of them) used for the purpose of climate control of the Building or operations of elevators, or if the water pipes, drainage pipes, electric lighting, or
other equipment of the Building, the roof or outside walls of the Building, or parking facilities, or any other Appurtenances become damaged or are destroyed through the negligence, carelessness, or
misuse of Tenant, its servants, agents, employees, or invitees anyone permitted by Tenant to be in or on the Building Complex, or
through Tenant or such parties, then the cost of necessary repairs, replacements, or alterations performed by Landlord shall be borne solely by Tenant, who shall, on demand, forthwith pay the same to
Landlord as Rent. 

14

 

 
 

ARTICLE 13.
  
    ABANDONMENT    
  

        Tenant shall not vacate or abandon the Leased Premises at any time during the Term hereof, without continuing to pay sums due hereunder and
complying with all other obligations contained in this Lease. If Tenant shall abandon, vacate, or surrender (whether at the end of the Primary Term or otherwise) the Leased Premises, or
shall be dispossessed by process of law or otherwise, then any personal property belonging to Tenant and left on the Leased Premises shall be deemed abandoned. If Tenant elects to vacate
or abandon or surrender the Leased Premises while continuing to pay sums due and to comply with its obligations hereunder, it shall nevertheless provide Landlord with written notice of whether it
intends to reoccupy the Leased Premises during the Term. In the event Tenant does not intend to reoccupy the Leased Premises, Landlord shall have the right, but not the obligation, to recapture the
Leased Premises in order to relet the same to a new tenant. In such event, Tenant shall pay all rent and other sums due hereunder through the date of recapture by Landlord, together with all costs of
reletting including tenant finish and leasing commissions. 

 
 

ARTICLE 14.
  
    ASSIGNMENT AND SUBLETTING    
  

        Section 14.1    Limitation on Assignment or Subletting.    Except as expressly set forth
below, Tenant shall not assign this Lease, or any interest therein, and shall not sublet the Leased Premises, or any part thereof, or any right or privilege appurtenant thereto, or
shall not suffer any other person to occupy or use the Leased Premises or any portion thereof, without the prior written consent of Landlord, which consent may be withheld except as hereinafter
expressly otherwise provided. Landlord agrees not to withhold consent to any proposed assignment of Tenant's entire interest in this Lease or to a subletting of the entire Leased Premises for all of
the then remaining term of this Lease less one (1) day, provided Tenant requests the same in writing, and provided: (i) at the time thereof, Tenant is not in default under this Lease;
(ii) Landlord, in its discretion reasonably exercised, determines that the reputation, business, proposed use of the Leased Premises, and financial responsibility of and by the proposed
assignee or sublessee, as the case may be, are satisfactory to Landlord; (iii) any assignee shall expressly assume all the obligations of this Lease on Tenant's part to be performed;
(iv) such consent, if given, shall not release Tenant of any of its obligations (including, without limitation, its obligation to pay Rent) under this Lease; and (v) Tenant and/or
Tenant's assignee in the case of an assignment specifically agree to pay over to Landlord, as Rent, fifty percent (50%) of all sums provided to be paid under the terms and
conditions of such sublease or assignment which would be in excess of the amounts otherwise required to be paid by Tenant pursuant to this Lease after deducting the reasonable costs of
such subletting or assignment, including without limitation broker's commissions, reasonable attorneys fees, and the cost of any alterations reasonably required in connection therewith; provided that
the fair market value of any furniture or equipment leased or sold by Tenant in connection with such assignment or subletting shall be excluded from such calculation. Notwithstanding the foregoing,
any consideration given to Tenant by a subleasee or assignee in exchange for a transaction contemplated in Section 14.4 shall not be deemed amounts to be paid by Tenant under the
Lease. Any assignment, subletting, or occupancy without Landlord's prior written consent shall be void and shall, at the option of Landlord, constitute a default under this Lease.
Neither this Lease nor any interest therein shall be assignable as to the interest of Tenant by operation of law without the written consent of Landlord, which consent may be arbitrarily withheld. 

        Section 14.2.    Acceptance of Performance No Waiver.    If this Lease be assigned, or if the Leased Premises
or any part thereof be sublet or occupied by anybody other than Tenant, Landlord may, after the occurrence of any default under this Lease, collect the Rent from the assignee, subtenant, or occupant
and apply the net amount collected to the Rent herein reserved, but no such assignment, 

15

 

subletting, occupancy or collection shall be deemed an acceptance of the assignee, subtenant or occupant as the Tenant hereof, or constitute a release of Tenant from further performance by Tenant of
all covenants on the part of Tenant herein contained. Unless otherwise permitted below in Section 14.4, a sale by Tenant of all or substantially all of its assets
or all or substantially all of its stock, if Tenant is a publicly traded corporation, a merger of Tenant with another corporation, or the transfer of twenty-five percent (25%) or more of
the stock in a corporate tenant whose stock is not publicly traded, or the transfer of twenty-five percent (25%) or more of the beneficial ownership interests in a
partnership tenant, without the prior written consent of Landlord shall constitute a prohibited assignment hereunder. Consent by Landlord to any one assignment or subletting shall not in any way be
construed as relieving Tenant from obtaining the Landlord's express written consent to any further assignment or subletting. Notwithstanding the consent of Landlord to any subletting or assignment,
and also in the event of an assignment or subletting under Section 14.4 below, Tenant shall nevertheless not be relieved from its
primary obligations hereunder to Landlord including, but not limited to, the payment of all Rent, taxes and insurance premiums as herein provided, and Tenant's Proportionate Share of Operating Costs. 

        Section 14.3.    Landlord to Approve Documents.    All documents utilized by Tenant to evidence any subletting
or assignment to which Landlord has consented shall be subject to prior reasonable approval by Landlord or its attorney. Tenant shall pay on demand all of Landlord's
actual reasonable costs and expenses, including reasonable attorneys' fees, not to exceed $500.00, incurred in determining whether or not to consent to any requested subletting or assignment and in
reviewing and approving such documentation. All public advertisements of the assignment of the Lease or sublet of the Leased Premises, or any portion thereof, shall be subject to the prior approval of
Landlord, which approval may not be unreasonably withheld or denied. 

        Section 14.4.    Permitted
Transferees.    Notwithstanding anything to the contrary contained in this Lease and provided Tenant is not in default hereunder, Tenant,
without Landlord's prior written consent (but with written notice thereof) may sublet the Leased Premises or assign this Lease to: (i) a subsidiary, affiliate, franchisee, division or
corporation controlling, controlled by or under common control with Tenant; (ii) a successor corporation related to Tenant by merger, consolidation, non-bankruptcy reorganization or
government action; or (iii) a purchaser of substantially all of Tenant's assets or stock (collectively "Permitted Transferees"). Provided, however, that any Permitted Transferee must have a net
worth of at least Fifty Million Dollars equal to or greater than that of Tenant, and no such assignment or sublease shall operate to release any security
obtained by Landlord from Tenant under the Lease, including the Security Deposit, the Additional Security Deposit or, the Letter of Credit. and any personal
guarantees. For purposes of this Lease, a transfer of stock in connection with any sale of Tenant's capital stock through any public exchange thereof shall not be deemed an
assignment, subletting or other transfer of this Lease or the Leased Premises requiring Landlord's consent. 

 
 

ARTICLE 15.
  
    SIGNS AND ADVERTISING    
  

        Tenant shall not install, paint, display, inscribe, place, or affix any sign, picture, advertisement, notice, lettering, or direction in the interior of the
Leased Premises which is visible from the outside of the Building. Landlord will prescribe a uniform pattern of identification signs for Tenant, to be placed on the outside of the doors leading into
the Leased Premises, and other than such identification signs, Tenant shall not install, paint, display, inscribe, place, affix, or otherwise attach, any sign, picture, advertisement, notice,
lettering, or direction on the outside of the Leased Premises for exterior view without the prior written consent of Landlord. Tenant shall have standard identification in the Building
lobby directory. Landlord represents that there is currently no monument or exterior signage available to tenants in the Building Complex. Landlord further represents that if the same ever exists,
Tenant 

16

 

shall
have equal rights, with all other tenants in the Building Complex, and subject in all instances to the Landlord's reasonable approval regarding size, design, and location, to
participate in such signage. Provided, however, Landlord shall have no obligation whatsoever to provide such signage or to seek approval of the same from any governmental or other
entity. 

 
 

ARTICLE 16.
  
    DAMAGE TO PROPERTY, INJURY TO PERSONS    
  

        Section 16.1    Tenant's Waiver of Claims.    Tenant, as a material part of the consideration to be rendered to
Landlord under this Lease, to the extent permitted by law, hereby waives all claims (except claims caused by or resulting from the gross negligence of Landlord, its agents, servants, or employees)
which Tenant, Tenant's successor, or permitted assigns may have against Landlord, its agents, servants, or employees for loss, theft, or damage to property and for injuries to persons, including
death, in, upon, or about the Leased Premises, the Building, or the Building Complex, from any cause whatsoever. Tenant will protect, defend, indemnify, and hold Landlord, its agents, servants, and
employees exempt and harmless from and on account of any damage or injury to person, including death, or to the goods, wares, and merchandise of any person, including the loss of the use thereof,
occasioned by Tenant's use or occupancy of or otherwise arising in any manner from, on, or out of the Leased Premises, other than that caused by or resulting from the gross negligence of
Landlord, or its agents, servants or employees. 

        Section 16.2.    Negligence of Third Parties.    Neither Landlord nor its agents, servants, or employees shall
be liable to Tenant for any damage by or from any act or negligence of any other tenant or occupant of the Building or by any owner or occupant of adjoining or contiguous property. Tenant agrees to
pay for all damage to the Building Complex, the Leased Premises, as well as all damage to tenants or occupants thereof caused by Tenant's misuse or neglect of the Leased Premises, its apparatus or
appurtenances, or caused by any licensee, contractor, agent, or employee of Tenant. Notwithstanding the foregoing provisions, neither Landlord nor Tenant shall be liable to one another for any loss,
damage, or injury caused by its act or neglect to the extent that the other party is required to obtain insurance coverage against such loss, damage or injury under the provisions of this Lease. 

        Section 16.3.    Tenant's Property.    Particularly, but not in limitation of the foregoing paragraph, all
property belonging to Tenant, or any occupant of the Leased Premises, that is in the Building or the Leased
Premises, shall be there at the risk of Tenant or other person only, and Landlord or its agents or employees (except in the case of gross negligence of Landlord or its agents or employees) shall not
be liable for: (i) damage to or theft of or misappropriation of such property; (ii) any damage to property entrusted to Landlord, its agents, or employees, if any; (iii) loss of
or damage to any property by theft or otherwise, by any means whatsoever; (iv) any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas,
electricity, snow, water, or rain which may leak from any part of the Building or from the pipes, appliances, or plumbing works therein or from the roof, street, subsurface, or from any other place,
or resulting from dampness or any other cause whatsoever; (v) interference with the light, air, or other incorporeal hereditament; or (vi) any latent defect in the Leased Premises or the
Building Complex. Tenant shall give prompt notice to Landlord in case of fire or accidents in the Leased Premises or in the Building Complex or of observed defects therein or in the fixtures or
equipment. 

        Section 16.4.    Tenant to Perform.    In the event that any action or proceeding shall be brought against
Landlord by reason of any obligation on Tenant's part to be performed under the terms of this Lease, or arising from any act or negligence of Tenant, its agents, or employees, then Tenant, upon notice
from Landlord, shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord, and Tenant hereby agrees to hold Landlord harmless from and against all liability resulting
therefrom, including, without limitation, reasonable attorneys' fees. 

17

  

 
 

ARTICLE 17.
  
    TENANT'S INSURANCE    
  

        Tenant shall, during the entire Term of this Lease, at its sole cost and expense, obtain, maintain, and keep in full force and effect the following types of
insurance: 

        Section 17.1.    Fire and Extended Coverage.    Fire and extended coverage insurance, including endorsements
for vandalism, malicious mischief, theft, sprinkler leakage, covering all of Tenant's property, including, but not limited to, furniture, fittings, installations, alterations, additions, partitions,
fixtures, other personal property, and anything in the nature of a leasehold improvement, including the office front, doors and windows for the Leased Premises in an amount equal to the full
replacement cost of such property without deduction for depreciation. 

        Section 17.2.    Public Liability.    Public liability insurance, including bodily injury and property damage,
personal injury, contractual liability with respect to all claims, demands, or actions by any person, firm, or corporation occurring in or about the Leased Premises, or in any way arising from,
related to, or connected with the conduct and operation of Tenant's business in the Leased Premises or Tenant's use of the Leased Premises. Such policies shall be occurrence based and shall be written
on a comprehensive basis, with limits not less than $1,000,000.00, and such higher limits as Landlord or the mortgagees of Landlord may require from time to time. 

        Section 17.3.    Business
Interruption.    Business interruption insurance in such amounts as will reimburse the Tenant for direct or indirect loss of
earnings attributable to all perils commonly insured against by prudent tenants or attributable to prevention of access to the Leased Premises or to the Building as a result of such
perils. 

        Section 17.4    Other Insurance.    Any other form or forms of insurance as the mortgagees of Landlord may
reasonably require from time to time in form, in amounts and for insurance risks against which a prudent tenant would protect itself, including, without limitation, Worker's Compensation Insurance. 

        Section 17.5.    Certificates.    All policies shall be taken out with insurers acceptable to Landlord and in
form satisfactory from time to time to Landlord, shall be written as primary policies not contributing with and not in excess of coverage which Landlord may carry, and shall name the Landlord as an
additional insured. Tenant agrees that certificates of insurance or, if required by Landlord or the mortgagees of Landlord, certified copies of each such insurance policy shall be delivered to
Landlord as soon as practicable after the placing of the required insurance, but in no event later than twenty (20) calendar days after Tenant takes possession of all or any part of the Leased
Premises. All policies shall require that at least thirty (30) calendar days, prior written notice be delivered to Landlord by the insurer prior to termination, cancellation, or material change
in such insurance. 

        Section 17.6.    Use of Proceeds.    Tenant agrees that in the event of damage or destruction to the leasehold
improvements on the Leased Premises covered by insurance required to be taken out by Tenant pursuant to this Article 17, Tenant shall use the proceeds of such insurance for the purpose of
repairing or restoring such leasehold improvements. In the event of damage or destruction of the Building entitling the Landlord to terminate this Lease pursuant to Article 18 hereof, then, if
the Leased Premises have also been damaged, Tenant will pay to Landlord all of its insurance proceeds relating to the leasehold improvements in the Leased Premises, and if the Leased Premises have not
been damaged, Tenant will deliver to Landlord, in accordance with the provisions of this Lease, the leasehold improvements and the Leased Premises. 

18

 

 
 

ARTICLE 18.
  
    DAMAGE OR DESTRUCTION    
  

        Section 18.1.    Right to Terminate.    In the event the Leased Premises or the Building are damaged by fire or
other insured casualty, and the insurance proceeds have been made available therefor by the holder or holders of any mortgages or deeds of trust covering the Building, the damage shall be repaired by
and at the expense of Landlord to substantially the condition as existed prior to the casualty, to the extent of such insurance proceeds available therefor, provided such
repairs can, in Landlord's sole opinion, be completed within one hundred twenty (120) eighty (180) calendar days after
the occurrence of such damage, without the payment of overtime or other premiums. Until such repairs are completed, the Rent shall be abated in proportion to the part of the Leased Premises which is
unusable by Tenant in the conduct of its business; provided, however, if the damage is due to the fault or neglect of Tenant or its employees, agents, or invitees, there shall be no abatement of Rent.
If repairs cannot, in Landlord's sole opinion, be made within said one hundred twenty (120) eighty (180) calendar day
period, Landlord shall notify Tenant within twenty-five (25) calendar days of the date of occurrence of such damage as to whether or not Landlord shall have elected to make such
repairs. If Landlord elects not to make such repairs which cannot be completed within one hundred twenty (120) eighty
(180) calendar days, then either party may, by written notice to the other, cancel this Lease as of the date of the occurrence of such damage. Provided, however, Tenant shall in
such case not have the right to terminate the Lease if the damage is due to the fault or neglect of Tenant or its employees, agents or
invitees. In the event that the Leased Premises or Building is damaged such that more than thirty-three percent (33%) of the same is rendered untenantable, or if insurance proceeds are insufficient or
unavailable to repair the damage, Landlord may, at its sole option, terminate this Lease by written notice to Tenant given not more than thirty (30) days after the occurrence of the damage.
Except as provided in this Section 18, there shall be no abatement of Rent and no liability of Landlord by reason of any injury, inconvenience, temporary limitation of access or interference to
or with Tenant's business or property arising from the making of any necessary repairs, or any alterations or improvements in or to any portion of the Building or the Leased Premises, or in or to
fixtures, appurtenances, and equipment therein necessitated by such damage. Tenant understands that Landlord will not carry insurance of any kind on Tenant's furniture and furnishings or on any
fixtures or equipment removable by Tenant under the provisions of this Lease, and that Landlord shall not be required to repair any injury or damage caused by fire or other cause, or to make any
repairs or replacements to or of improvements installed in the Leased Premises by or for Tenant at Tenant's cost. If any casualty, not caused or contributed to by Tenant and which
materially and adversely affects Tenant's ability to operate its business at the Leased Premises, occurs in the last year of the Term, and such damage may not reasonably be repaired within sixty(60)
days thereafter, Tenant may elect to terminate this Lease upon thirty (30) days prior written notice to Landlord. 

        Section 18.2.    Landlord's Insurance.    Landlord covenants and agrees that, throughout the Term hereof, it
will insure the Building (excluding foundations, excavations and other non-insurable items) and the machinery, boilers, and equipment contained therein owned by Landlord (excluding any
property with respect to which Tenant is obliged to insure pursuant to the provisions of Section 17 hereof) against damage by fire and extended perils coverage in such reasonable amounts as
would be carried by a prudent owner of a similar property in the same locale. Landlord will also, throughout the Term, carry public liability and property damage insurance with respect to the
operation of the Building in reasonable amounts as would be carried by a prudent owner of a similar property in the same locale. Landlord may, but shall not be obligated to, take out and carry any
other form or forms of insurance as it or the mortgagees of Landlord may reasonably determine to be advisable. The cost of all such insurance shall be an Operating Cost pursuant to Article 7.
Notwithstanding the contribution by Tenant to the cost of insurance premiums, as provided herein, Tenant acknowledges that it has no right to 

19

 

receive any proceeds from any such insurance policies carried by Landlord, and that such insurance will be for the sole benefit of Landlord, with no coverage for Tenant for any risk insured against. 

 
 

ARTICLE 19.
  
    ENTRY BY LANDLORD    
  

        Landlord and its agents shall have the right to enter the Leased Premises at all reasonable times and upon reasonable notice to Tenant, except in the case of an
emergency for which no notice shall be required, for the purpose of examining or inspecting the same, to supply janitorial services and any other services to be provided by Landlord to Tenant
hereunder, to show same to prospective purchasers or and within the last nine months of the Lease Term to prospective tenants of the
Building, and to make such alterations, repairs, improvements, or additions, whether structural or otherwise, to the Leased Premises or to the Building Complex as Landlord may deem necessary or
desirable. Landlord may enter by means of a master key, without liability to Tenant except for any failure to exercise due
care for Tenant's property, and without affecting this Lease. Landlord shall use reasonable efforts on any such entry not to unreasonably interrupt or interfere with Tenant's use or occupancy of the
Leased Premises. 

 
 

ARTICLE 20.
  
    DEFAULT BY TENANT    
  

        Section 20.1.    Events of Default.    Each one of the following events is herein referred to as an "event of
default": 

        A.    Tenant
shall fail to make due and punctual payment of any Rent within five (5) days following the date when due; 

        B.    Tenant
shall vacate or abandon the Leased Premises except as expressly permitted by Article 13; 

        C.    This
Lease or the estate of Tenant hereunder shall be transferred to or shall pass to or devolve upon any other person or party except in the manner set forth in
Article 14; 

        D.    This
Lease or the Leased Premises or any part thereof shall be taken upon execution or by other process of law directed against Tenant, or shall be taken upon or subject
to any attachment at the instance of any creditor of or claimant against Tenant, and said attachment shall not be discharged or disposed of within fifteen
(15) sixty (60) calendar days after the levy thereof; 

        E.    The
filing of any petition or the commencement of any case or proceeding by the Tenant under any provision or chapter of the Federal Bankruptcy Act, the Federal
Bankruptcy Code or any other federal or state law relating to insolvency, bankruptcy or reorganization; or the adjudication that the Tenant is insolvent or bankrupt, or the entry of an order for
relief under the Federal Bankruptcy Code with respect to Tenant; 

        F.    The
filing of any petition or the commencement of any case or proceeding described in Section 20.1 (E) above against the Tenant, unless such petition and
all proceedings initiated thereby are dismissed within sixty (60) calendar days from the date of such filing; the filing of an answer by Tenant admitting the allegations of any such petition;
or the appointment of or taking possession by a custodian, trustee
or receiver for all or any assets of the Tenant, unless such appointment is vacated or dismissed within sixty (60) calendar days from the date of such appointment or taking of such possession; 

        G.    The
insolvency of the Tenant or the execution by the Tenant of an assignment for the benefit of creditors; or the convening by Tenant of a meeting of its creditors, or
any class thereof, for the 

20

 

purposes of effecting a moratorium upon or extension or composition of its debts; or the failure of the Tenant to generally pay its debts as they mature; 

        H.    Tenant
shall fail to take possession of the Leased Premises thirty (30) sixty
(60) calendar days following the date the Leased Premises are Ready for Occupancy; or 

        I.    Tenant
shall fail to perform any of the other agreements, terms, covenants or conditions hereof on Tenant's part to be performed, and such non-performance
shall continue for a period of fifteen (15) calendar days after written notice thereof by Landlord to Tenant, or if such performance cannot be reasonably had within such fifteen
(15) calendar day period, Tenant shall not in good faith have commenced such performance within such fifteen (15) calendar day period and shall not thereafter diligently proceed to
completion. 

        Section 20.2    Remedies of Landlord.    If any one or more events of default shall happen, then Landlord shall
have the right at Landlord's election, then or at any time thereafter, as may be permitted by applicable law without demand or notice, to reenter and take possession of
the Leased Premises or any part thereof and repossess the same as Landlord's former estate and expel Tenant and those claiming through or under Tenant, and remove the effects of both or either,
without being deemed guilty of any manner of trespass, and without prejudice to any remedies for arrears of Rent or breach of covenants or prior conditions. Should Landlord take possession pursuant to
legal proceedings or pursuant to any notice provided for by law including a proceeding for possession pursuant to Colorado's Forcible Entry and Unlawful Detainer Statutes, Landlord may, from time to
time, either: 

        A.    Without
terminating this Lease, attempt to relet the Leased Premises or any part thereof, either alone or in conjunction with other portions of the Building of which the
Leased Premises are a part, in Landlord's or Tenant's name, but for the account of Tenant, for such term or terms (which may be greater or less than a period which would otherwise have constituted the
balance of the term of this Lease) and on such conditions and upon such other terms (which may include necessary concessions of free rent and alteration and repair of the Leased Premises) as Landlord,
in its sole discretion, may determine, and Landlord may collect and receive the Rents therefor. If Landlord elects to attempt to relet the Leased Premises the following provisions shall apply: 

        (1)  Landlord
shall use reasonable efforts to relet the Leased Premises after all other space available for leasing in the Building has been let, but, Landlord shall not have
any duty to lease the Leased Premises
below the then current market rental rates being obtained for competing office buildings in the Denver Metropolitan area and shall in no way be responsible or liable for any failure to relet the
Leased Premises, or any part thereof, or for any failure to collect any Rent due upon such reletting; 

        (2)  No
such reentry or taking possession of the Leased Premises by Landlord shall be construed as an election on Landlord's part to terminate this Lease unless a written
notice of such intention be given to Tenant; 

        (3)  No
notice from Landlord hereunder or under a forcible entry and unlawful detainer statute or similar law shall constitute an election by Landlord to terminate this Lease
unless such notice specifically so states. Landlord reserves the right following any such reentry and/or reletting to exercise its right to terminate this Lease by giving Tenant such written notice,
in which event the Lease will terminate as specified in said notice; 

        (4)  If
Landlord elects to take possession of the Leased Premises as provided in this Section 20.2 without terminating the Lease, Tenant shall pay to Landlord
(a) the Rent and other sums as herein provided, which would be payable hereunder if such repossession had not occurred, less (b) the net proceeds, if any, of any reletting of the Leased
Premises after deducting all Landlord's expenses in connection with such reletting, including, but without limitation, all 

21

 

repossession costs, brokerage commissions, legal expenses, attorneys' fees, expenses of employees, alteration, remodeling and repair costs and expenses of preparation for such reletting; and 

        (5)  If,
in connection with any reletting, the new lease term extends beyond the existing term, or the Leased Premises covered thereby include other leased premises not part
of the Leased Premises, a fair apportionment of the rent received from such reletting and the expenses incurred in connection therewith as provided aforesaid will be made in determining the net
proceeds received from such reletting. In addition, in determining the net proceeds from such reletting, any rent concessions will be apportioned over the term of the new lease. Tenant shall pay such
other amounts to Landlord monthly on the days on which the Rent and all other amounts owing hereunder would have been payable if possession had not been retaken and Landlord shall be entitled to
receive the same from Tenant on each such day. 

        B.    Give
Tenant written notice of intention to terminate this Lease on the date of such given notice, or on any later date specified therein, and on the date specified in
such notice, Tenant's right to possession of the Leased Premises shall cease and the Lease shall thereupon be terminated, except as to Tenant's liability hereunder as hereinafter provided, as if the
expiration of the term fixed in such notice were the end of the term herein originally demised. In the event this Lease is terminated pursuant to the provisions of this paragraph B, or
terminated pursuant to a proceeding for possession under the Colorado Forcible Entry and Unlawful Detainer Statutes, Tenant shall remain liable to Landlord for damages in an amount equal to the Rent
and other sums which would have been owing by Tenant hereunder for the balance of the Term had this Lease not been terminated, less the net
proceeds, if any, of any reletting of the Leased Premises by Landlord subsequent to such termination, after deducting all Landlord's expenses in connection with such reletting, including, but without
limitation, the expenses enumerated in paragraph A above, if permitted by applicable law. Landlord shall be entitled to collect such damages from Tenant monthly on
the days on which the Rent and other amounts would have been payable hereunder if this Lease had not been terminated, and Landlord shall be entitled to receive the same from Tenant on each such day.
Alternatively, at the option of Landlord, in the event this Lease is terminated, Landlord shall, if permitted by applicable law, be entitled to recover forthwith against
Tenant as damages for loss of the bargain and not as a penalty, an amount equal to the worth, at the time of termination, of the excess, if any, of the amount of Rent reserved in this Lease for the
balance of the Term hereof over the then reasonable rental value of the Leased Premises for the same period plus all amounts incurred by Landlord in order to obtain possession of the Leased Premises
and relet the same, including attorneys' fees, reletting expenses, alterations and repair costs, brokerage commissions and all other like amounts. 

        Section 20.3.    Cumulative Remedies.    Suit or suits for the recovery of the Rent and other amounts and
damages set forth hereinabove may be brought by Landlord, from time to time, at Landlord's election, and unless expressly so provided, nothing herein shall be deemed to require Landlord to postpone
the filing of such suit. Each right and remedy provided for in this Lease shall be cumulative and shall be in addition to every other right or remedy provided for in this Lease or now or hereafter
existing at law or in equity or by statute or otherwise including but not limited to suits for injunctive relief and specific performance. The exercise or beginning of the exercise by Landlord of any
one or more of the rights or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by
Landlord of any or all other rights or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise. All such rights and remedies shall be considered
cumulative and non-exclusive. All costs incurred by Landlord in connection with collecting any Rent or other amounts and damages owing by Tenant pursuant to the provisions of this Lease,
or to enforce any provision of this Lease, including reasonable attorneys' fees from the date such matter is turned over to an attorney, whether or not one or more actions are commenced by Landlord,
shall also be recoverable by Landlord from Tenant. 

22

 

        Section 20.4.    No Waiver.    No failure by Landlord to insist upon the strict performance of any agreement,
term, covenant or condition hereof or to exercise any right or remedy consequent upon a breach thereof, and no acceptance of full or partial payment of Rent or any other amounts owing by Tenant during
the continuance of any such breach, shall constitute a waiver of any such breach or of such agreement, term, covenant or condition. No agreement, term, covenant or condition hereof to be performed or
complied with by Tenant, and no breach thereof, shall be waived, altered or modified except by written instrument executed by Landlord. No waiver of any breach shall affect or alter this Lease, but
each and every agreement, term, covenant and condition hereof shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. Notwithstanding any
termination of this Lease, the same shall continue in force and effect as to any provisions which require observance or performance by Landlord or Tenant subsequent to such termination. 

        Section 20.5.    Bankruptcy.    Nothing contained in this Article 20 shall limit or prejudice the right
of Landlord to prove and obtain as liquidated damages in any bankruptcy, insolvency, receivership,
reorganization or dissolution proceeding, an amount equal to the maximum allowed by any statute or rule of law governing such a proceeding and in effect at the time when such damages are to be proved,
whether or not such amount be greater, equal or less than the amounts recoverable, either as damages or Rent, referred to in any of the preceding provisions of this Article 20. Notwithstanding
anything contained in this Article 20 to the contrary, any such proceeding or action involving bankruptcy, insolvency, reorganization, arrangement assignment for the benefit of creditors, or
appointment of a receiver or trustee, as set forth above in Sections 20.1 E, F, and G, shall be considered to be an event of default only when such proceeding, action or
remedy shall be taken or brought by or against the then holder of the leasehold estate under this Lease. 

        Section 20.6.    Interest on Landlord's Advances.    Any amounts paid by Landlord to cure any defaults of
Tenant hereunder, which Landlord shall have the right, but not the obligation, to do, shall, if not repaid by Tenant within ten (10) calendar days of demand by Landlord, thereafter bear
interest at the rate of eighteen percent (18%) per annum. 

 
 

ARTICLE 21.
  
    TAXES    
  

        During the Term hereof, Tenant shall pay, prior to delinquency, all business and other taxes, charges, notes, duties and assessments levied, and rates or fees
imposed, charged, or assessed against or in respect of Tenant's occupancy of the Leased Premises or in respect of the personal property, trade fixtures, furnishings, equipment, and all other personal
property of Tenant contained in the Leased Premises, and shall hold Landlord harmless from and against all payment of such taxes, charges, notes, duties, assessments, rates, and fees, and against all
loss, costs, charges, notes, duties, assessments, rates, and fees, and any and all such taxes. Tenant shall cause said fixtures, furnishings, equipment, and other personal property to be assessed and
billed separately from the real and personal property of Landlord. In the event any or all of Tenant's fixtures, furnishings, equipment, and other personal property shall be assessed and taxed with
Landlord's real property, Tenant shall pay to Landlord Tenant's share of such taxes within twenty (20) calendar days after delivery to Tenant by Landlord of a statement in writing setting forth
the amount of such taxes applicable to Tenant's property. Tenant shall also pay, as an Operating Cost as determined under Article 7, its Proportionate Share of all real estate taxes, general or
special, all public rates, dues and special assessments of every kind or nature which shall become due and payable or which are assessed against or levied upon the Building Complex during the Term of
this Lease. 

23

 

 
 

ARTICLE 22.
  
    EMINENT DOMAIN    
  

        If the Building, or a substantial part thereof, or a substantial part of the Leased Premises, shall be lawfully taken or condemned (or conveyed under threat of
such taking or condemnation) for any public or quasi-public use or purpose, the Term of this Lease shall end upon, and not before, the date of the taking of possession by the condemning authority, and
without apportionment of the award. Tenant hereby assigns to Landlord Tenant's interest, if any, in such award. Current Rent shall be apportioned as of the date of such termination. If any part of the
Building, other than the Leased Premises, not constituting a substantial part of the Building, shall be so taken or condemned (or conveyed under threat of such taking or condemnation), or if the grade
of any street adjacent to the Building Complex is changed by any competent authority and such taking or change of grade makes it necessary or desirable to substantially remodel, replace or restore any
part of the Building Complex, Landlord shall have the right to cancel this Lease upon not less than ninety (90) calendar days' notice prior to the date of cancellation designated in the notice.
No money or other consideration shall be payable by Landlord to Tenant for the right of cancellation, and Tenant shall have no right to share in any condemnation award, or in any judgment for damages,
or in any proceeds of any sale made under any threat of condemnation or taking. In the event this Lease is not canceled, the Lease shall continue in full force and effect, without abatement or
reduction of rental due hereunder. Notwithstanding the foregoing, nothing contained herein shall prevent Tenant from commencing a separate proceeding against the condemning authority to recover any
award it may be entitled to as a result of such taking or condemnation. 

 
 

ARTICLE 23.
  
    SUBORDINATION TO MORTGAGES AND DEEDS OF TRUST    
  

        Section 23.1.    Lease Subordinate to Mortgages.    This Lease and the rights of Tenant hereunder shall be and
are hereby made subject and subordinate to the lien of any mortgages or deeds of trust now or hereafter existing against the Building, the Property or both, and to all renewals, modifications,
consolidations, replacements and extensions thereof and to all advances made, or hereafter to be made, upon the security thereof. Although such subordination shall be self operating, Tenant, or its
successors in interest, shall upon Landlord's request, execute and deliver upon the demand of Landlord any and all instruments desired by Landlord, subordinating, in the manner reasonably requested by
Landlord, this Lease to any such mortgage or deed of trust and Tenant's failure to do so within a reasonable period of time not to exceed seven (7) business days
upon demand shall constitute a default under this Lease. Landlord shall upon Tenant's request execute use commercially reasonable efforts to obtain
from any existing lender or ground lessor a Nondisturbance Agreement in a form reasonably acceptable to the Tenant and the holder of any mortgage or deed of
trust on the Property, or ground lessor within sixty (60) days after written request therefor from Tenant. 

        Should
any mortgage or deed of trust affecting the Building, the Property or both, be foreclosed, then; (1) the liability of the mortgagee, beneficiary or purchaser at such
foreclosure sale shall exist only so long as such mortgagee beneficiary, or purchaser is the owner of the Building and/or Property and such
any liability accruing thereafter shall not continue or survive after further transfer of ownership; and (2) Tenant shall be deemed to
have attorned, as Tenant under this Lease, to the purchaser at any
foreclosure sale thereunder, and this Lease shall continue in force and effect as a direct lease between and binding upon Tenant and such purchaser at any foreclosure sale. As used in this
Article 23, "mortgagee" and "beneficiary" shall include successors and assigns of any such party, whether immediate or remote, the purchaser of any mortgage or deed of trust, whether at
foreclosure or otherwise, and the successors, assigns and mortgagees and beneficiaries of such purchaser, whether immediate or remote. 

24

 

        Section 23.2.    Tenant's Notices.    In the event of any act or omission by Landlord under this Lease which
would give Tenant the right to terminate this Lease or to claim a partial or total eviction, if any, Tenant will not exercise any such right until: 

	(A)
	it
has given written notice (by United States certified or registered mail, postage prepaid) of such act or omission to the holder of any mortgage or deed of trust on the Property
(whose names and addresses Landlord agrees will be furnished to Tenant on request) shall furnish to Tenant); and

	(B)
	any
such holder of any mortgage or deed of trust on the Property shall, following the giving of such notice, have failed with reasonable diligence to commence and to pursue reasonable
action to remedy such act or omission. 

 
 

ARTICLE 24.
  
    ESTOPPEL CERTIFICATE    
  

        Tenant shall, at any time and from time to time, upon not less than ten (10) calendar days' prior written notice from Landlord, execute, acknowledge, and
deliver to Landlord 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 and certifying that this
Lease, as so modified, is in full force and effect) and such other matters concerning this Lease and the Tenant as may be reasonably requested by Landlord, its lenders, or any potential assignee of
Landlord, including the dates to which the Rent and other charges are paid, and acknowledging that Tenant is paying Rent on a current basis with no offsets or claims, and there are not, to Tenant's
knowledge, any uncured defaults on the part of Landlord hereunder (or specifying such offsets, claims, or defaults, if any are claimed). It is expressly understood and agreed that any such statement
may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the Building Complex or by any other person to whom it is delivered. Tenant's failure to deliver such statement
within such time shall be conclusive upon Tenant that this Lease is in full force and effect, without modification except as may be represented by Landlord, that there are no uncured defaults in
Landlord's performance, and that not more than two (2) months, rental has been paid in advance. 

 
 

ARTICLE 25.
  
    WAIVER    
  

        The waiver by Landlord of any breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition,
or any subsequent breach of the same or any other term, covenant, or condition herein contained. The acceptance of Rent or any other sums due by Tenant hereunder shall not be construed to be a waiver
of any breach by Tenant of any term, covenant, or condition of this Lease, it being understood and agreed that the remedies herein given to Landlord shall be cumulative, and the exercise of any one
remedy by Landlord shall not be to the exclusion of any other remedy. 

 
 

ARTICLE 26.
  
    INABILITY TO PERFORM    
  

        The Lease and the obligation of Tenant to pay Rent and any other sums due by Tenant hereunder and to perform all of the other covenants and
agreements hereunder on the part of Tenant to be performed shall not be affected, impaired, or excused, nor shall Landlord at any time Neither party
shall be deemed to be in default hereunder because Landlord such party: (1) is unable to fulfill any of its
obligations under this Lease; or (2) is unable to supply or is delayed in supplying any service expressly or by implication to be supplied; or (3) is unable to make or is delayed in
making any 

25

 

improvements, repairs, additions, alterations, or decorations; or (4) is unable to supply or is delayed in supplying any equipment or fixtures, if
Landlord such party is prevented or delayed from so doing any of the foregoing by reason of accident, breakage, repairs, strike or
labor troubles, or any outside cause whatsoever beyond the reasonable control of Landlord such party, including, but not limited to,
riots and civil disturbances, energy shortages, or governmental preemption in connection with a national emergency, or by reason of any rule, order, or regulation of any department or subdivision
thereof of any government agency, or by reason of the conditions of supply and demand which have been or are affected by war or other emergency, or by reason of any other cause, similar or dissimilar,
beyond the reasonable control of Landlord of such party. Provided, however, nothing herein shall excuse or be cause to delay any payment due
hereunder, including the payment of Rent. 

 
 

ARTICLE 27.
  
    SUBROGATION    
  

        The parties hereto agree that any and all fire and extended coverage insurance which is required to be carried by either shall be endorsed with a subrogation
clause, substantially as follows: "This insurance
shall not be invalidated should the insured waive, in writing, prior to a loss, any and all right of recovery against any party for loss occurring to the property described herein"; and each party
hereto waives all claims for recovery from the other party, its officers, agents or employees for any loss or damage (whether or not such loss or damage is caused by negligence of the other party, and
notwithstanding any provisions contained in this Lease to the contrary) to any of its real or personal property insured under valid and collectible insurance policies to the extent of the collectible
recovery under such insurance. 

 
 

ARTICLE 28.
  
    APPENDICES    
  

        Appendices, exhibits, clauses, plats, plans, riders, or other attachments, if any, referred to herein and signed or initialed by Landlord and Tenant and affixed
to this Lease are hereby incorporated herein and made a part hereof. 

 
 

ARTICLE 29.
  
    SALE BY LANDLORD    
  

        In the event of a sale or conveyance or transfer by Landlord of its interest in the Property and/or in the Building containing the Leased Premises, and/or in this
Lease, the same shall operate to release Landlord (subject to Section 33.2 hereof) from any future liability contained in favor of Tenant, and in such event, Tenant agrees to look solely to the
responsibility of the successor in interest of Landlord in and to this Lease. This Lease shall not be affected by any such sale, conveyance, or transfer, and Tenant agrees to attorn to such purchaser
or transferee. 

 
 

ARTICLE 30.
  
    RIGHT OF LANDLORD TO PERFORM    
  

        All covenants and agreements to be performed by Tenant under any of the terms of this Lease shall be performed by Tenant at Tenant's sole cost and expense, and
without any abatement of Rent or any other sums due by Tenant hereunder. If Tenant shall fail to pay any sum of money, other than Rent, required to be paid by it hereunder, or shall fail to perform
any other act on its part to be performed hereunder, and such failure shall continue for nine (9) calendar days after written notice thereof by Landlord, Landlord may, but shall not be
obligated to do so, and without waiving or releasing Tenant from any obligations of Tenant, make any such payment or perform any such other act 

26

 

on Tenant's part to be made or performed as in this Lease provided. All sums so paid by Landlord and all necessary incidental costs, together with interest thereon at the rate of eighteen percent
(18%) from the date of such payment by Landlord until the date on which Tenant fully reimburses Landlord, shall be payable to Landlord on demand, and Tenant covenants to pay any such sums, and
Landlord shall have (in addition to any other right or remedy of Landlord) the same rights and remedies in the event of the non-payment thereof by Tenant, as in the case of default by
Tenant in the payment of Rent. 

 
 

ARTICLE 31.
  
    ATTORNEYS' FEES    
  

        In the event of any legal proceeding between Tenant and Landlord to enforce any provision of this Lease or any right of either party hereto, the unsuccessful
party to such legal proceeding shall pay to the successful party all costs and expenses, including reasonable attorneys' fees, incurred therein. If Landlord or Tenant without fault, are made a party
to any litigation instituted by or against the other, then such party shall indemnify the other against, and protect, defend, and save it harmless from, all costs and expenses, including attorneys'
fees, incurred connection therewith. To the extent permitted by law, Landlord and Tenant hereby waive the right to a jury trial in any legal action or proceeding relating to this Lease. 

 
 

ARTICLE 32.
  
    NOTICE    
  

        Any notice from Landlord to Tenant or from Tenant to Landlord shall be in writing and may be served personally or by mail. If served by mail, it shall be mailed
by registered or certified mail, return receipt requested, postage prepaid, addressed to Tenant at the Leased Premises or to the attention of Jim Mault, 602 Park Point Drive, Suite 240, Golden, CO
80401, or to Landlord at DPC Development Company, 7000 E. Belleview Ave. #300, Greenwood Village, CO 80112, to the attention of the Director of Property Management. Either party may change these
persons or addresses by giving notice as provided above. 

 
 

ARTICLE 33.
  
    SECURITY DEPOSIT    
  

        Section 33.1.    Amount and Use.    Tenant has, upon Lease execution, deposited with Landlord the sum of
Forty-Three Thousand Six Hundred Seventy-Seven and 00/100 ($43,677.00) (the "Security Deposit") as
security for the full and faithful performance of every provision of this Lease to be performed by Tenant. If Tenant defaults an event of default
occurs with respect to any provision of this Lease, including, but not limited to, the provisions relating to the payment of Rent, Landlord may use, apply, or retain all or any part of
this Security Deposit for the payment of any Rent and any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's
default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of such Security Deposit is to be used or applied, Tenant shall,
within ten (10) calendar days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant's failure to
do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on such
deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord's
option, to the last assignee of Tenant's interest hereunder) within a reasonable period of time after the expiration of this Lease Term and upon Tenant's vacation of the Leased Premises, provided,
however, 

27

 

the Security Deposit may be retained by Landlord as security for Tenant's obligations under Article 7 until after for the time period
permitted to Landlord pursuant to Section 7.4 for the final determination of the Operating Costs for the calendar year in which the Lease expired. Any amounts due from Tenant
under said Article 7 may be deducted from the Security Deposit prior to the return of the balance thereof. 

        Section 33.2.    Additional Security
Deposit.    In addition to the Security Deposit referred to in Section 33.1 above, Tenant shall upon execution of this Lease
deposit with Landlord the sum of one hundred eighty-four thousand six hundred and thirty-eight dollars ($184,638) (the "Additional Security Deposit") to be held by Landlord under the
conditions herein contained as additional security for Tenant's performance of its obligations under this Lease. Landlord shall be entitled to use or apply all or any portion of the Additional
Security Deposit in the same manner as the Security Deposit, provided, however, Landlord shall use or apply all of the Security Deposit before using or applying any of the Additional Security Deposit.
The Additional Security Deposit shall be held by Landlord for the full term of the Lease unless and until Tenant satisfies the conditions contained in this Section 33.2 for its return. Provided
that Tenant is not in default beyond any applicable cure periods, including restoration, if necessary of the Security Deposit, to its original amount, Tenant shall be entitled to the return of fifty
percent (50%) of the Additional Security Deposit upon establishing for Landlord, based upon audited financial statements, that it has achieved a net worth of at least fifty (50) million dollars
and that it has maintained a positive cash flow from its operations for one full fiscal year. Thereafter Tenant shall be entitled to the return of the remainder of the Additional Security Deposit,
provided it is not in default beyond any applicable cure periods, upon establishing for Landlord, based upon audited financial statements, that, while maintaining the continuous net worth required
above, that it has also maintained positive cash flow from its operations for two (2) consecutive fiscal years. If at any time prior to its return to Tenant all or any part of the Additional
Security Deposit is used or applied by Landlord, Tenant shall restore the same to the amount which existed at the time of the event of default. Unless earlier returned to Tenants as provided for
herein, the Additional Security Deposit shall be returned to Tenant within a reasonable period of time following expiration of the Lease Term. 

        Section 33.3.    Transfer of Deposit.    Tenant acknowledges that Landlord has the right to transfer its
interest in the Building Complex, the Property and this Lease, and Tenant agrees that in the event of any such transfer, Landlord shall transfer the Letter of Credit and
either have the right to transfer such Security
Deposit to the transferee. transfer or credit such Security Deposit and any Additional Security
Deposit to the transferee. , including the Letter of Credit. Upon Landlord's delivery to Tenant of such transferee's written acknowledgment of its
receipt of such Security Deposit Landlord shall thereby be released by Tenant from all liability or obligation for the return of such deposit, and Tenant agrees to look solely to such transferee for
the return of the Security Deposit. 

 
 

ARTICLE 34.
    
    
    RIGHTS RESERVED    
  

        Landlord reserves the following rights, exercisable without notice and without liability to Tenant for damage or injury to property, person, or business, and
without effecting an eviction, constructive or actual, or disturbance of Tenant's use or possession, or giving rise to any claim for set-off or abatement of rent: 

        A.    To
change the Building's name or street address; 

        B.    To
install, affix, and maintain any and all signs on the exterior and interior of the Building or the Property; 

28

 

        C.    To
designate and approve, prior to installation, all types of window shades, blinds, drapes, awnings, window ventilators, and other similar equipment, and to control all
internal lighting that may be visible from the exterior of the Building; 

        D.    To
retain at all times, and to use in appropriate instances, keys to all doors within and into the Leased Premises. No locks or bolts shall be altered, changed, or added
without the prior written consent of Landlord; 

        E.    To
decorate or to make repairs, alterations, additions, or improvements, whether structural or otherwise, in and about the Building, or any part thereof, and for such
purposes to enter upon the Leased Premises, and during the continuance of said work to temporarily close doors, entryways, public spaces, and corridors in the Building, and to interrupt or temporarily
suspend Building services and facilities, Landlord to use reasonable efforts to minimize any interruption or interference with Tenant's use or occupancy of the Leased Premises when performing such
work; 

        F.    To
have and retain a paramount title to the Leased Premises, free and clear of any act of Tenant and subject only to the express rights of Tenant
hereunder; 

        G.    To
grant to anyone the exclusive right to conduct any business or to render any services in the Building provided that such exclusive rights do not conflict
with Tenant's use of the Leased Premises; and 

        H.    To
approve the weight, size, and location of safes and other heavy equipment and articles in and about the Leased Premises and the Building, and to require all such items
and furniture to be moved into and out of the Building and the Leased Premises only at such times and in such manner as Landlord shall direct in writing. Movement of Tenant's property into or out of
the Building, and within the Building, is entirely at the risk and responsibility of Tenant, and Landlord reserves the right to require permits before allowing any such property to be moved into or
out of the Building. 

 
 

ARTICLE 35.
  
    SUBSTITUTION OF SPACE    
  

        Landlord reserves the right, upon sixty (60) calendar days' written notice to Tenant, and at any time, without any adjustment in Rent,
to substitute for the space described on Appendix A other substantially similar space in a substantially comparable location on the same floor or any other floor of the Building, which
substitute space shall be approximately equal in area and dimensions to the space described on Appendix A. If Landlord shall exercise said option, the substituted space shall thereafter be
deemed, for the purposes hereof, the "Leased Premises" and a new amended Appendix A to this Lease showing the new space will be substituted for the original Appendix A. Landlord agrees
to pay the Tenant's expenses to move its furniture, fixtures and equipment to such substituted space, and shall pay other reasonable expenses of Tenant incurred as a direct result of such substitution
of space, including but not limited to costs of new stationary and advertising. 

 
 

ARTICLE 36.
  
    REAL ESTATE BROKER    
  

        Tenant represents that Tenant not has dealt directly with any broker other than Genesee Commercial Group, Ltd. as Landlord's broker in connection with this
Lease, and that insofar as Tenant knows, no other broker negotiated or participated in the negotiations of this Lease, or submitted or showed the Leased Premises, or is entitled to any commission in
connection herewith. Tenant agrees to indemnify and defend Landlord from any claims or demands of brokers other than Genesee Commercial Group, Ltd.. 

29

 

 
 

ARTICLE 37.
  
    MISCELLANEOUS PROVISIONS    
  

        A.    The
term "office" or "offices", whenever used in this Lease, shall not be construed to mean or to permit the Leased Premises to be used as a store or stores, for the sale
or display, at any time, of goods, wares, or merchandise of any kind, or as a restaurant, shop, booth, stand, barbershop, or for other similar purposes, or for manufacturing. The words
"re-enter" or "re-entry", as used in this Lease, are not restricted to their technical legal meaning. The term "Landlord", as used in this Lease, means only the landlord from
time to time, and upon conveying or transferring its interest, Landlord shall be relieved from any further obligation or liability hereunder. 

        B.    Time
is of the essence of this Lease and of each and all of its provisions. 

        C.    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 by both Landlord and Tenant. 

        D.    The
invalidity or unenforceability of any provision hereof shall not affect or impair any other provisions. 

        E.    This
Lease shall be governed by and construed pursuant to the laws of the State of Colorado. 

        F.    Should
any mortgagee or beneficiary under a deed of trust require a modification of this Lease, which modification will not bring about any increased cost or expense to
Tenant or will in any other way substantially change the rights and obligations of Tenant hereunder, then and in such event, Tenant agrees that this Lease may be so modified. 

        G.    All
rights and remedies of Landlord under this Lease, or those which may be provided by law, may be exercised by Landlord in its own name individually, or in its name by
its agent, and all legal proceedings for the enforcement of any such rights or remedies, including distress for rent, unlawful detainer, and any other legal or equitable proceedings, may be commenced
and prosecuted to final judgment and be executed by Landlord in its own name individually or in its name by its agent. Landlord and Tenant each represent to the other that each has full power and
authority to execute this Lease and to make and perform the agreements herein contained, and Tenant expressly stipulates that any rights or remedies available to Landlord, either by the provisions of
this Lease or otherwise, may be enforced by Landlord in its own name individually or in its name by its agent or principal. If Tenant is a corporation or other legal entity, each individual executing
this Lease on behalf of said entity represents and warrants that (i) he/she is duly authorized to execute and deliver this Lease on behalf of said entity in accordance with its bylaws or
operating agreements; (ii) this Lease is binding upon said corporation or entity; and (iii) a resolution to that effect in a form reasonably acceptable to Landlord shall be provided
immediately within ten (10) days after written upon request. 

        H.    The
marginal headings and titles to the paragraphs of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part
hereof. 

        I.    Tenant
acknowledges that there are no covenants, representations, warranties, agreements, or conditions, expressed or implied, collateral or otherwise, forming part of or
in any way affecting or relating to this Lease except as expressly set out in this Lease and the attachments hereto, and that the terms and provisions of this Lease may not be modified or amended
except by written instrument signed by both Landlord and Tenant. 

        J.    Tenant
agrees that Tenant, Tenant's employees and agents or any others permitted by Tenant to occupy or enter the Leased Premises shall abide by the rules and regulations
contained in Appendix D. Landlord shall have the right to amend, delete, modify or change the rules and regulations provided that said amendments are applicable to and uniformly bind each
tenant of the 

30

 

Building Complex. Tenant agrees to comply with all such rules and regulations upon notice from Landlord thereof. A breach of any of such rules or regulations shall be deemed a default under the Lease
and Landlord shall have all remedies as set forth in Article 20. Landlord shall not, however, be liable to Tenant for the violation of any such rules and regulations by any other Tenant, its
employees, agents, visitors, licensees or any other person. 

        K.    Landlord
and all partners, shareholders, or members, as the case may be, shall have absolutely no personal liability with respect to any provision of this Lease, or any
obligation or liability arising in connection therewith. Tenant shall look solely to the equity in the Building Complex in which the Leased Premises is located, for the satisfaction of any remedies of
Tenant in the event of a breach by the Landlord of any of its obligations. Such exculpation of liability shall be absolute without any exception whatsoever. 

        L.    Neither
Landlord nor Tenant shall record this Lease, but a short form memorandum hereof setting forth the names of the parties, the description of the Leased Premises and
the Commencement and Termination Dates of this Lease may be recorded at the request of either party. 

        M.  Subject
to the terms and provisions of Article 29, the covenants and conditions herein contained shall apply to and bind the respective heirs, successors,
executors, administrators, and assigns of the parties hereto, and the terms "Landlord" and "Tenant" shall include the successors and assigns of either such party, whether immediate or remote. 

        N.    Landlord
covenants and agrees that Tenant, upon complying with all of the obligations of Tenant hereunder, and subject to the terms and provisions hereof, shall peaceably
and quietly enjoy the Leased Premises and Tenant's rights hereunder during the Term hereof, without hindrance by Landlord or any persons claiming under Landlord. 

 
 

ARTICLE 38
  
    CONTINGENCY    
  

        In addition to the Security Deposit provided for in Article 33, Tenant shall provide Landlord with a Letter of Credit, containing the
material provisions included in the Letter of Credit Term Sheet attached hereto as Appendix F to secure its obligations under this Lease. Said Letter of Credit shall be provided to Landlord
within ten (10) calendar days of Tenant's execution of this Lease. All of Tenant's rights under this Lease are contingent upon the delivery of the Letter of Credit to Landlord no
later than September 15, September 22 25, 2000. In the event Landlord has not received said Letter of Credit
by such time, then this Lease shall automatically terminate without any further liability of either party. In the event that Landlord draws on the Letter of Credit in an amount in excess of what is
required to cure an event of default by Tenant hereunder, Landlord shall hold such excess funds as additional Security Deposit pursuant to Article 33. 

        IN
WITNESS WHEREOF, Landlord and Tenant have executed this Lease the day and year first above written. 

	LANDLORD:	 	TENANT:
	
NEW GENESEE LAND COMPANY, LLC, a Colorado limited liability company	
 	

HEALTHETECH, INC., a Delaware corporation
	

By	
 	

/s/  DONALD P. COOK      
	
 	

By:	
 	

/s/  JAMES R. MAULT      

	Its:	 	Manager
	 	Its:	 	CEO

31

 
[TENANT'S
NOTARY BLOCK] 

	STATE OF COLORADO	 	)	 	 	 
	AND	 	)ss.	 	 	 
	COUNTY OF Jefferson	 	)	 	 	 

        The
foregoing instrument was acknowledged before me this 2nd day of October, 2000 by James Mault of HealtheTech. 

Witness
my hand and official seal. 

My
commission expires: 2/28/04 

	 	 	/s/  ALISA K. WODICKA      
 Notary Public

[SEAL] 

32

  

 
 

APPENDIX "A"
  
    Leased Premises    
  

[MAP
OF PREMISES—

INTENTIONALLY OMITTED] 

	 	 	INITIALS:	 	 
	

 	
 	

LANDLORD:	
 	

DPC

	 	 	TENANT:	 	JRM

(A)-1

  

 
 

APPENDIX "B"
  
    Legal Description of the Property    
  

PARCEL
2-A

LOT 2,

GENESEE OFFICE/COMMERCIAL FILING NO. 2, ALSO KNOWN AS, PARCEL 2-A

LOT 2, GENESEE OFFICE/COMMERCIAL FILING NO. 2, EXEMPTION SURVEY, 

TOGETHER
WITH A NON-EXCLUSIVE EASEMENT FOR MOTOR VEHICLE AND PEDESTRIAN INGRESS AND EGRESS, CONSTRUCTION AND MAINTENANCE OF ROADWAYS AND SIGNS RELATED TO THE PROPERTY AS CREATED BY ACCESS
EASEMENT AGREEMENT RECORDED MAY 29, 1985 AT RECEPTION NO. 85049400, AND AS SHOWN ON THE PLAT OF GENESEE OFFICE/COMMERCIAL FILING NO. 2, LOTS 3 AND 4 EXEMPTION SURVEY AS RECORDED APRIL 30, 1985 AT
RECEPTION NO. 850400511, OVER THE FOLLOWING DESCRIBED PROPERTY: 

THE
PORTION OF GENESEE OFFICE/COMMERCIAL FILING NO. 2, A SUBDIVISION RECORDED IN THE RECORDS OF JEFFERSON COUNTY, COLORADO AT RECEPTION NO. 79012336, AS MODIFIED BY THE GENESEE OFFICE/COMMERCIAL
FILING NO. 2, LOTS 3 AND 4, EXEMPTION SURVEY. ALSO, RECORDED IN THE RECORDS OF SAID JEFFERSON COUNTY AT RECEPTION NO. 85040051 AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: 

BEGINNING
AT A POINT ON THE RIGHT-OF-WAY OF PARK POINT DRIVE, A DEDICATED COUNTY ROAD ON SAID SUBDIVISION PLAT, SAID POINT BEING THE NORTHEASTERLY CORNER OF PARCEL 2A OF SAID
SUBDIVISION; 

THENCE
ALONG THE EASTERLY LINE OF SAID PARCEL, SOUTH 19 DEGREES 31 MINUTES 57 SECONDS WEST 105.00 FEET; 

THENCE
DEPARTING SAID EASTERLY LINE NORTH 65 DEGREES 21 MINUTES 20 SECONDS EAST 131.69 FEET; 

THENCE
SOUTH 82 DEGREES 14 MINUTES 47 SECONDS EAST 134.02 FEET; 

THENCE
NORTH 80 DEGREES 30 MINUTES 05 SECONDS EAST 129.88 FEET; 

THENCE
NORTH 07 DEGREES 52 MINUTES 46 SECONDS WEST 71.46 FEET TO A POINT ON THE SOUTHERLY LINE OF LOT 5 OF SAID SUBDIVISION; 

THENCE
ALONG SAID SOUTHERLY LOT LINE NORTH 80 DEGREES 19 MINUTES 12 SECONDS WEST 220.51 FEET TO A POINT ON THE RIGHT-OF-WAY OF SAID PARK POINT DRIVE; 

THENCE
FOLLOWING SAID RIGHT-OF-WAY ON A CURVE TO THE RIGHT HAVING RADIUS OF 80 FEET, A CENTRAL ANGLE OF 116 DEGREES 31 MINUTES 01 SECONDS AND CHORD BEARING SOUTH 60 DEGREES 24
MINUTES 30 SECONDS WEST 136.07 FEET, AN ARC LENGTH OF 162.69 FEET TO THE POINT OF BEGINNING, 

COUNTY
OF JEFFERSON,

STATE OF COLORADO 

	 	 	INITIALS:	 	 
	

 	
 	

LANDLORD:	
 	

DPC

	 	 	TENANT:	 	JRM

(B)-1

  

 
 

APPENDIX C
  
    Tenant Improvement Work Agreement    
  

        1.    Tenant Improvement Allowance. Landlord hereby grants to Tenant an allowance of Four Hundred Seventy Six Thousand Four
Hundred Eighty and NO/100 U.S. Dollars ($476,480.00) (the "Tenant Improvement Allowance") for the costs of constructing Tenant improvements to the Leased Premises in accordance with the
preliminary space plan as set forth in Appendix C-1 hereto and as may be revised by the final space plan, to be approved by Tenant within
ten (10) days after Lease execution (the "Space Plan"), and the Tenant Improvement Plan, as defined below, inclusive of any and all space planning, architectural and design and
engineering fees and expenses and municipal fees (collectively "Tenant Work"). The cost of the Tenant Work shall also include any costs resulting from changes ordered by the Tenant and
reasonably approved by the Landlord plus any costs resulting from rulings, interpretations or instructions from Building, fire or other regulatory officials having
jurisdiction over the work. 

        In
the event that the Landlord determines, based upon the final bid from Landlord's contractor, that the actual cost of the Tenant Work, as contemplated by
the Space Plan, and the Tenant Improvement Plan will or may exceed the Tenant Improvement Allowance, then Tenant shall, the Tenant, prior to the
Landlord commencing construction and unless Tenant elects to revise the Tenant Improvement Plan to reduce the scope and costs of the Tenant Work, be solely
responsible for the costs and expenses for the Tenant Work which exceed the Tenant Improvement Allowance, up to the amount of the final bid. Tenant shall deposit with the Landlord
sufficient funds equal to the difference between such estimated cost of amount of
the final bid for the Tenant Work less
and the Tenant Improvement Allowance (the "Excess Costs"). Upon completion of the Tenant work and upon receipt of the final
costs, a final adjustment shall be made between the Tenant Improvement Allowance and the funds which are to be provided by the Tenant towards the Tenant Work.
Provided, however, Tenant shall not be responsible for payment of any additional amounts for the Tenant Work except for the as set forth herein and in paragraph 2
below with respect to change orders and Excess Costs for the Additional Work, or and additional costs otherwise caused by Tenant. Tenant
agrees that Landlord shall be entitled to a construction supervision and management fee in the amount of eight percent (8%) of the cost of the Tenant Work which fee shall be charged against the Tenant
Improvement Allowance. 

        2.    Tenant Work. Tenant shall, within thirty (30) days after execution of the Lease, submit to Landlord for approval
its plans and specifications for the Tenant Work (the"Tenant Improvement Plan"). Unless
otherwise agreed to by Landlord, Tenant shall, in preparing the Tenant Improvement Plan, use the Landlord's space planner. Landlord shall, within thirty (30) days thereafter,
either approve of the Tenant Improvement Plan or submit to Tenant its proposed changes thereto. In the event Landlord and Tenant are unable to agree upon the nature and scope of the
Tenant Improvement Plan within ninety (90) days of execution of the Lease, or such longer time as the Landlord and Tenant shall agree to in writing, then the Landlord shall have the right to
terminate this Lease. Upon approving of the Tenant Improvement Plan, Landlord agrees to complete the work depicted therein in a good and workmanlike manner and in compliance with all
laws, using new materials and equipment of good quality, and deliver possession of the Leased Premises to Tenant in accordance with the provisions contained herein on or before the
Commencement Date, subject, however, to Paragraph 4 below. If Tenant shall require any subsequent changes to the Space Plan or the Tenant Improvement Plan ("Additional Work"), then, providing
Landlord agrees in writing to such changes, and the cost thereof will cause the total costs to exceed the Tenant Improvement Allowance, as reasonably determined by
Landlord, Tenant shall, within ten (10) calendar days of the billing therefore, deposit with Landlord, Landlord's projected costs and expenses for the Additional Work
in excess of the Tenant Improvement Allowance, which costs shall include general contractor profit and overhead expected to be incurred by Landlord in connection with
preparation of such additional plans and specifications and/or such Additional Work. Such reimbursements shall be made by Tenant to Landlord 

(C)-1

 

prior to Landlord's undertaking any changes to the Space Plan. If such projected costs for the Additional Work are in excess of Landlord's actual costs then Landlord shall refund any excess to Tenant
and if Landlord's costs for the Additional Work are in excess of the estimated sum paid by Tenant, then Tenant shall pay such deficiency to Landlord on demand. 

        3.    Commencement of the Rent. The Commencement Date shall not occur until the date that the Leased Premises are Ready for
Occupancy as that term is defined below; provided, however, that Rent shall nevertheless commence as of the Commencement Date set out in Article 3 of this Lease
notwithstanding date that the Leased Premises would be Ready for Occupancy but for any delay caused by or as a result of one or more of the following: 

        (a)  Tenant's
failure timely to submit the Tenant Improvement Plan to Landlord or to devote the time or furnish the information required in connection with the Tenant Work;
or 

        (b)  Tenant's
failure to timely deposit the estimated costs for the Additional Work if required by the provisions of Section 2 above or
the cost of the work in excess of the Tenant Improvement Allowance within the time period specified above; or 

        (c)  Tenant's
changes in the Tenant Work, in the Space Plan relating thereto, or in the plans for the Additional Work (notwithstanding Landlord's approval of any such
changes); or 

        (d)  Any
other act or omission by Tenant or its agent. 

        4.    Alternate Commencement Date. If Landlord is unable to cause the Leased Premises to be Ready for Occupancy by the
Commencement Date for reasons other than those set out in subsection (a) through (d) of Paragraph 3 above, or if the Landlord shall have the Leased Premises Ready for Occupancy
prior to the Commencement Date, then in either such event, the Commencement Date of the Lease shall be on the first day that the Leased Premises are Ready for Occupancy. In the event the Commencement
Date set out in Article 3 of this Lease is extended as provided for in Paragraph 3 above, then the expiration date of the Primary Term shall be extended accordingly.
Notwithstanding the foregoing, Landlord agrees to make commercially reasonable efforts to have the Leased Premises Ready for Occupancy by October January 31, 2000
November December 1, 2000. 

        "Ready
for Occupancy" as used herein shall mean the date on which Landlord shall have substantially completed all its work outlined in this Work Letter. The issuance of a Certificate of
Occupancy (or its equivalent) for the Leased Premises certifying substantial completion of the work shall conclusively control the date the Leased Premises are substantially complete. Landlord agrees
to use its best efforts to provide Tenant with at least fifteen (15) calendar days prior notice of the date the Leased Premises are expected to be Ready for Occupancy. Landlord's undertaking to
provide fifteen (15) calendar days prior notice to Tenant shall not change, alter, or otherwise affect Tenant's obligations under this Lease to take occupancy of the Leased Premises when the
same are Ready for Occupancy. 

        5.    Miscellaneous.

        (a)  Except
to the extent otherwise indicated herein, the initially capitalized terms used in this Tenant Improvement Work Agreement shall have the same meaning assigned to
them in the Lease. 

        (b)  The
terms and provisions of this Tenant Improvement Work Agreement are intended to supplement and are specifically subject to all the terms and provisions of the Lease.
In the event of conflict between the terms of this Tenant Improvement Work Agreement and the Lease, then the provisions of the Lease shall govern. 

        (c)  Prior
to the date the Leased Premises are Ready for Occupancy, Landlord's contractor and Tenant shall inspect the Leased Premises and jointly complete a "punch list" of
incomplete or 

(C)-2

 

defective work and thereafter Landlord shall exercise due diligence to cause such punch list items to be completed. 

        (d)  This
Tenant Improvement Work Agreement may not be amended or modified other than by supplemental written agreement executed by authorized representatives of the parties
hereto. 

        (e)  Tenant
shall not be entitled to any credits, whether in the form of materials or money, for unused work or materials. 

        (f)    Landlord
shall, if permitted, assign to Tenant all warranties relating to the Tenant Work which would have the effect of
reducing Tenant's maintenance and repair obligations under the Lease and to cooperate with Tenant in connection with enforcing the same, all at no cost to Landlord. 

	 	 	INITIALS:	 	 
	

 	
 	

LANDLORD:	
 	

DPC

	 	 	TENANT:	 	JRM

(C)-3

  

 
 

APPENDIX "C - 1"
  
    Space Plan    
  

        The attached preliminary Space Plan, together with the final Space Plan and the Tenant Improvement Plan,
shall serve to define all of the Tenant's improvements and the Tenant Work as agreed to by the Tenant and the Landlord. Any subsequent modifications to the actual tenant improvements or work within
the Leased Premises that is not described in this Space Plan, the final Space Plan, or the Tenant Improvement Plan shall be considered Additional Work and the costs for
such Additional Work shall be the sole responsibility of Tenant as described in Paragraph 2 of Appendix C. 

	 	 	INITIALS:	 	 
	

 	
 	

LANDLORD:	
 	

DPC

	 	 	TENANT:	 	JRM

(C-1)-1

  

 
 

APPENDIX "D"
  
    Rules and Regulations    
  

        1.    Tenant
shall not place anything, or allow anything to be placed, in the Tenant's Terrace Space, if any, or near the glass of any window, door, partition or wall which
may, in Landlord's judgment, appear unsightly from outside of the Building. 

        2.    The
Building directory, located in the Building lobby as provided by Landlord, shall be available to Tenant to display one (1) line/name and their location in the
Building, which display shall be as directed by Landlord. 

        3.    The
sidewalks, halls, passages, exits, entrances, elevators and stairways shall not be obstructed by Tenant or used by Tenant for any purposes other than for ingress to
and egress from the Leased Premises. The halls, passages, exits, entrances, elevators, stairways, balconies and roof are not for the use of the general public and Landlord shall, in all cases, retain
the right to control and prevent access thereto by all persons whose presence in the judgment of Landlord, reasonably exercised, shall be prejudicial to the safety, character, reputation and interests
of the Building. Neither Tenant nor any employees or invitees of any tenant shall go upon the roof of the Building. 

        4.    The
toilet rooms, urinals, wash bowls and other apparatus shall not be used for any purposes other than that for which they were constructed, and no foreign substance of
any kind whatsoever shall be thrown therein, and to the extent caused by Tenant or its employees or invitees, the expense of any breakage, stoppage or damage resulting from the violation of this rule
shall be borne by Tenant. 

        5.    Tenant
shall not cause any unnecessary janitorial labor of services by reason of Tenant's carelessness or indifference in the preservation of good order and cleanliness. 

        6.    No
cooking shall be done or permitted by Tenant on the Leased Premises, nor shall the Leased Premises be used for lodging. 

        7.    Tenant
shall not bring upon, use or keep in the Leased Premises or the Building any kerosene, gasoline or inflammable or combustible fluid or material, or use any method
of heating air conditioning other than that supplied by Landlord. 

        8.    Landlord
shall have sole power to direct electricians to where and how telephone and other wires are to be introduced. No boring or cutting for wires is to be allowed
without the written consent of Landlord. The location of telephones, call boxes and other office equipment affixed to the Leased Premises shall be subject to the written approval of Landlord. 

        9.    Upon
the termination of the tenancy, Tenant shall deliver to Landlord all keys and passes for offices, rooms, parking lot and toilet rooms which shall have been furnished
Tenant. In the event of the loss of any keys so furnished, Tenant shall pay Landlord therefor. Tenant shall not make, or cause to be made, any such keys and shall order all such keys solely from
Landlord and shall pay Landlord for any additional such keys over and above the two sets of keys furnished by Landlord. 

        10.  Tenant
shall not install linoleum, tile, carpet or other floor covering so that the same shall be affixed to the floor of the Leased Premises in any manner except as
approved in writing by Landlord. 

        11.  No
furniture, packages, supplies, equipment or merchandise will be received in the Building or carried up or down in the freight elevator, except between such hours and
in such freight elevator as shall be designated by Landlord. 

        12.  Tenant
shall cause all doors to the Leased Premises to be closed and securely locked before leaving the Building at the end of the day. 

(D)-1

 

        13.  Without
the prior written consent of Landlord, Tenant shall not use the name of the Building or any picture of the Building in connection with, or in promoting or
advertising the business of Tenant, except Tenant may use the address of the Building as the address of its business. 

        14.  Tenant
shall cooperate fully with Landlord to assure the most effective operation of the heating and air conditioning of the Leased Premises and the Building, and shall
refrain from attempting to adjust
any controls. unless expressly permitted in the Lease except within the Leased Premises. Tenant shall keep corridor doors closed. 

        15.  Except
for Landlord's gross negligence, Tenant assumes full responsibility for protecting the Leased Premises from theft, robbery and pilferage, which includes keeping
doors locked and other means of entry to the Leased Premises closed and secured. 

        16.  Except
with the prior written consent of the Landlord, Tenant shall not sell or cause to be sold any items or services at retail in or from the Leased Premises, nor
shall Tenant carry on or permit or allow any employee or person to carry on the business of machine copying, stenography, typewriting or similar business in or from the Leased Premises for the service
or accommodation of occupants of any portion of the Building without written consent of the Landlord. 

        17.  Tenant
shall not conduct any auction nor permit any fire or bankruptcy sale to be held on the Leased Premises, nor store goods, wares or merchandise on the Leased
Premises. Tenant shall not allow any vending machines on the Leased Premises without Landlord's prior written consent. 

        18.  All
freight must be moved into, within and out of the Building under the supervision of Landlord and according to such regulations as may be posted in the Building
Manager's office. All moving of furniture or equipment into or out of the Building by Tenant shall be done at such time and in such manner as directed by Landlord or its agent. In no cases shall items
of freight, furniture, fixtures or equipment be moved into or out of the Building or in any elevator during such hours as are normally considered rush hours to an office building; i.e.,
7:30 a.m. to 9:30 a.m., 11:00 a.m. to 1:00 p.m., and 4:00 p.m. to 6:30 p.m. 

        19.  On
Sundays, holidays (legal) and on other days during certain hours for which the Building may be closed after normal business hours, access to the Building or to halls,
corridors, elevators, stairwells will be controlled by Landlord through the use of the Building watchman. This watchman will have the right to demand of any and all persons seeking access to the
Building prior identification to determine if they have rights of access to the Leased Premises. The Landlord shall, in no case, be liable for damages wherein admission to the Building has not been
granted during abnormal hours, by reason of a tenant failing to properly identify himself to the watchman, or through the failure of the Building to be unlocked and open for access by Tenant, Tenant's
employees and general public. 

        20.  Tenant
shall not change locks or install other locks on doors without the prior written consent of Landlord. 

        21.  Tenant
shall give prompt written notice to Landlord of any accidents to or defects in plumbing, electrical fixtures or heating apparatus so the same may be attended to
properly. 

        22.  No
safes or other objects larger or heavier than the freight elevators of the Building are limited to carry shall be brought into or installed on the demised Leased
Premises. Landlord shall have the power to prescribe the weight and position of such safes or other objects which shall, if considered necessary by Landlord, be required to be supported by such
additional materials placed on the floor as Landlord may direct, and at the expense of Tenant. In no event can these items exceed a weight for which the floor is designed. 

        23.  No
person or persons other than those approved by Landlord will be permitted to enter the Building for purposes of cleaning, maintenance, construction or painting. 

(D)-2

 

        24.  Tenant
shall not permit or suffer the Leased Premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the Building by
reason of noise, odors, or vibrations or interfere in any way with other tenants or those having business therein, nor shall any animals or birds be kept in or about the Building. Smoking or carrying
of a lighted cigar, pipe or cigarette in any common areas in the interior of the Building is prohibited. 

        25.  Canvassing,
soliciting and peddling in the Building are prohibited. Tenants shall cooperate to prevent the same. 

        26.  Landlord
reserves the right, at any time, to rescind any one or more of these rules and regulations, or to make such other and further reasonable rules and regulations
as in Landlord's judgment may from time to time be necessary for the safety, care and cleanliness of the Building for the preservation of order therein. 

	 	 	INITIALS:	 	 
	

 	
 	

LANDLORD:	
 	

DPC

	 	 	TENANT:	 	JRM

(D)-3

  

 
 

APPENDIX E
  
    Commencement Date Memorandum    
  

        THIS COMMENCEMENT DATE MEMORANDUM shall set forth and reaffirm certain terms and provisions contained in that
certain lease dated                    , 20    ("Lease") by and
between            , a Colorado            , as "Landlord"
and            , dba            , a Colorado
            , as "Tenant" regarding the lease by Tenant of a portion of the property situated
at                        , Colorado. 

W I T N E S S E T H:

        NOW, THEREFORE, Landlord and Tenant acknowledge and agree as follows: 

	 	i)	 	The leased premises consist of            rentable square feet and are located in
unit/space            ;
	

 	

ii)	
 	

The leased premises have been delivered to and accepted by Tenant;
	

 	

iii)	
 	

The Lease Commencement Date is            , 20            and the Termination Date
is            , 20            .
	

 	

iv)	
 	

The minimum Monthly Rental is as per the schedule shown below:

Time
Period                        Monthly Rental 

	 	5)	 	The Building Complex consists of            rentable square feet.
	

 	

6)	
 	

The Lease is in full force and effect, and there are no claims, offsets or defenses thereto, unless expressly stated by Tenant herein.

        IN WITNESS WHEREOF, the parties have caused this Commencement Date Memorandum to be duly executed and made this            day of
            , 20    . 

	LANDLORD:	 	TENANT:
	

    
	
 	

/s/  JAMES R. MAULT      

        [TENANT'S
NOTARY BLOCK] 

	STATE OF COLORADO	 	)	 	 	 
	AND	 	)	ss.	 	 
	COUNTY OF	 	)	 	 	 

        The
foregoing instrument was acknowledged before me this 2nd day of October, 2000, by James R. Mault of HealtheTech. 

Witness
my hand and official seal.

My commission expires: 2/28/04 

	[SEAL]	 	/s/  ALISA K. WODICKE      
 Notary Public

	 	 	INITIALS:	 	 
	

 	
 	

LANDLORD:	
 	

DPC

	 	 	TENANT:	 	JRM

(E)-1

  

 
 

APPENDIX "F"
  
    Letter of Credit Term Sheet    
  

        The parties agree that Tenant will obtain for the benefit of Landlord an irrevocable standby Letter of Credit from a commercial lending
institute acceptable to Landlord.

The letter of credit will contain the following terms:

        1.    Beneficiary.
New Genesee Land Company, LLC 

        2.    Obligation
of issuer. The credit is to be irrevocable and for a term of one year, renewable on an annual basis for up to seven years. If Tenant fails to renew the letter
of credit within fifteen thirty days prior to the annual expiration of said letter of credit, Landlord may consider the Tenant in
material default of the underlying lease, and may pursue all remedies available to Landlord. 

        3.    Transferability.
The credit is to be transferable and assignable, only to a buyer of Landlord's interest in the subject property, or to the Landlord's
lender. 

        4.    Drafts.
Drafts are to be sight, payable in US dollars. 

        5.    Amount.
The sum or sums of all drafts drawn under the credit will not exceed in total $1,200,000. Partial draws shall be permitted. 

        6.    Documents.
The required draw documents will be as follows: 

        a.    Beneficiary
signed and acknowledged statement certifying that it is the Landlord under the referenced lease agreement, that Tenant is in default under the terms of the
lease agreement, and that said default has continued for a period of 15 calendar days after written notice was provided to Tenant. 

        b.    A
copy of the notice of default from Landlord to Tenant. 

        c.    The
original letter of credit. 

        7.    Applicable
Law. The letter of credit is to be governed by the Colorado Uniform Commercial Code. 

Agreed
to and accepted 

	New Genesee Land Company, LLC

a Colorado limited liability company	 	Healthetech, Inc., a Delaware corporation
	

By:	
 	

/s/  DONALD P. COOK      
	
 	

By:	
 	

/s/  JAMES R. MAULT      

	Donald P. Cook, Manger	 	 	 	Print Name:	James R. Mault

	Date:	 	10/16/00
	 	Title:	 	CEO

	 	 	 	 	Date:	 	9/22/00

(F)-1

 
 

FIRST AMENDMENT TO LEASE    
  

        This First Amendment to Lease (the "Amendment") is made and entered into this 24th day of January, 2001 by and between New Genesee Land Company,
LLC, a Colorado limited liability company ("Landlord") and HEALTHETECH, Inc., a Delaware corporation ("Tenant"). 

RECITALS

        WHEREAS,
Landlord and Tenant entered into that certain Standard Office Lease dated October 16, 2000 (the "Lease") for the premises consisting of approximately 25,624 rentable
square feet of office space known as Suite 300 (the "Leased Premises") located in the office building at 523 Park Point Drive, Golden, CO and known as the Genesee Point Office Building (the
"Building"); and 

        WHEREAS,
pursuant to Article 3 of the Lease and subject to the provisions of Appendix C thereto, the Commencement Date and Expiration Date of the Primary Term are
January 1, 2001 and December 31, 2007 respectively; and 

        WHEREAS,
Landlord and Tenant desire to amend the Lease to, among other things, redefine the Primary Term by providing for a new Commencement Date and to set forth the Base Rent schedule
therefor; and 

        WHEREAS,
the Tenant Improvement Allowance provided for in Appendix C was intended to be $20.00 per square foot and was calculated based upon 23,824 rentable square feet instead of
the 25,624 and Landlord and Tenant thus desire to amend said Appendix C to accurately reflect the amount of the Tenant Improvement Allowance; and 

        WHEREAS,
Tenant now also desires to lease from Landlord and Landlord is willing to lease to Tenant, subject to the provisions contained herein, an additional approximately 1,000 square
feet in the form of storage space; and 

        WHEREAS,
Landlord and Tenant therefore desire to further amend the Lease to, among other things, provide for the terms and conditions, including the payment of rent, under which Landlord
will lease such space to Tenant. 

AGREEMENT  

        NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Landlord and Tenant agree that the Lease is amended as follows: 

        1.    Primary Term.    Notwithstanding anything contained in the Lease and in Appendix C thereto to the
contrary, Article 3 is hereby amended to provide for a new Commencement Date of May 1, 2001. Accordingly, the Primary Term shall commence at 12:01 a.m. Mountain Standard Time on
April 1, 2001 and shall expire on March 31, 2008. This Amendment shall serve as the Commencement Date Memorandum which the parties are required to execute under Article 3. 

        2.    Monthly Base Rent.    The Monthly Base Rent is as per the schedule shown below:  

	Time Period
 
	 	Monthly Base Rental

	04/01/01-03/31/02	 	$	33,097.67
	04/01/02-03/31/03	 	 	34,165.34
	04/01/03-03/31/04	 	 	35,233.00
	04/01/04-03/31/05	 	 	36,300.67
	04/01/05-03/31-06	 	 	37,368.34
	04/01/06-03/31-07	 	 	38,436.00
	04/01/07-03/31/08	 	 	39,503.67

        3.    Tenant Improvement Allowance.    Appendix C is hereby amended to provide for a Tenant Improvement
Allowance of Five Hundred Twelve Thousand, Four Hundred Eighty and NO/100 US Dollars ($512,480.00). All other provisions of Appendix C regarding the costs for constructing the Tenant
Improvements shall remain in effect. 

        4.    Additional Space.    Effective on February 1, 2001 (the "Commencement Date") and continuing throughout
the entire Term of the Lease, as defined therein, Landlord leases to Tenant and Tenant leases from Landlord for the term and upon the covenants, conditions and terms set forth in the Lease and this
Amendment, the storage space containing approximately 2,793 square feet as identified on the attached Exhibit A (the "Additional Space") which is situated as a part of the Building. In the
event of the termination of the Lease, or of Tenant's right to possession of the Leased Premises, this Amendment shall no longer be effective and Tenant's rights to possession of the Additional Space
shall terminate simultaneously therewith. 

        a.    Additional Space Rent.    Commencing on the Commencement Date, Tenant agrees to pay Landlord rent for the
Additional Space in the amount of One Hundred Eighty-Five Thousand, Seven Hundred thirty-four and 50/100 US Dollars ($185,734.50). Said rent shall be paid in the same manner
and at the same time as provided for the payment of rent in the Lease and Landlord shall have the same remedies for non-payment of such rent as provided for therein. The Rent schedule for
the Term of the Lease is as follows: 

	Storage Sq. Ft.
 
	 	Lease Year
	 	Annual Rent
	 	Monthly Rent

	2793	 	1	 	$	22,344.00	 	$	1,862.00
	2793	 	2	 	 	23,740.50	 	 	1,978.38
	2793	 	3	 	 	25,137.00	 	 	2,094.75
	2793	 	4	 	 	26,533.50	 	 	2,211.13
	2793	 	5	 	 	27,930.00	 	 	2,327.50
	2793	 	6	 	 	29,326.50	 	 	2,443.88
	2793	 	7	 	 	30,723.00	 	 	2,560.25

        b.    Use of Additional Space.    The Additional Space shall be used for storage purposes, and no other purpose
without the prior written consent of Landlord. The Additional Space shall not be used for any improper or unlawful purpose. Tenant shall not store or allow to be placed in the Additional Space any
hazardous or toxic substance or any inflammable or combustible fluid or materials. Tenant shall not use the Additional Space or permit anything to be done in or about the Additional Space which will
in any way conflict with any law, statute, ordinance or regulation in effect. Tenant's use of the Additional Space shall also otherwise be subject to and comply with any applicable provision of the
Lease and any rules and regulations of Landlord thereunder. 

        c.    Condition of Additional Space.    Landlord shall not be responsible for providing any services to the Additional
Space except for maintaining normal and customary building heat, water and electrical services. Tenant hereby accepts the Additional Space on an "AS IS" basis. Tenant shall, at its sole expenses, keep
the Additional Space in good repair. Tenant shall not, without the prior written consent of Landlord, make any alterations, improvements or additions to the Additional Space. At the expiration of the
Lease, Tenant shall surrender the Additional Space in as good a condition as on the Commencement Date, ordinary wear and tear excepted. Tenant shall be responsible to Landlord for all costs and
expenses of repair and replacement to return the Additional Space to such condition. 

        d.    Assignments.    Tenant shall not assign any interest in the Additional Space or any part thereof, without
Landlord's prior written consent thereto. 

        e.    Tenant's Indemnification.    In addition to the indemnification provided for in the Lease, Tenant will protect,
defend, indemnify and hold Landlord, its agents, servants and employees exempt and harmless from and on account of any damage or injury to person, including death, or to the goods, wares and
merchandise of any person, occasioned by Tenant's use or occupancy of or otherwise arising in any manner from, on or out of the Additional Space, other than that caused by or resulting from the gross
negligence of Landlord. All property belonging to Tenant or stored by Tenant in the Additional Space shall be there at the risk of Tenant, and Landlord, or its agents or employees, shall not be liable
for any damage to or theft of or misappropriation of such property. 

        5.    No Rental Abatement.    Tenant shall not receive nor be entitled to claim any free rent or rental abatement.
Monthly installments of Base Rent shall be due and payable as set forth herein and in the Lease, on the first day of each month. 

        6.    Ratification.    Except as expressly amended herein, all of the terms, conditions and covenants of the Lease
shall remain in full force and effect and Landlord and Tenant hereby ratify and reaffirm such terms, conditions and covenants and shall be bound thereby. Tenant acknowledges that Landlord is not in
default under the Lease and Tenant has no claims against Landlord for failure to perform any of its obligations thereunder as of the date hereof. 

	LANDLORD:	 	TENANT:
	New Genesee Land Company LLC

a Colorado limited liability company	 	Healthetech, Inc.,

a Delaware corporation
	

By:	
 	

/s/  DONALD P. COOK      
 Donald P. Cook, Manager	
 	

By:	
 	

/s/  MARK MONDRY      

	 	 	 	 	Title	 	Mark Mondry

V.P. New Business Development and Intellectual Properties

	STATE OF COLORADO	 	)	 	 	 
	 	 	)	ss.	 	 
	COUNTY OF JEFFERSON	 	)	 	 	 

        The
foregoing instrument was acknowledged before me this 24th day of January, 2001, by Mark Mondry of Healthetech, Inc., a Delaware corporation. 

Witness
my hand and seal.

My commission expires: 7/20/2002 

	[SEAL]	 	/s/  KATHERINE L. CHANEY      
 Notary Public

QuickLinks

Exhibit 10.6

STANDARD OFFICE LEASE GENESEE POINT OFFICE BUILDING

TABLE OF CONTENTS

STANDARD OFFICE LEASE

ARTICLE 1. LEASED PREMISES

ARTICLE 2. PURPOSE

ARTICLE 3. TERM

ARTICLE 4. COMPLETION OF THE PREMISES

ARTICLE 5. RENT

ARTICLE 6. ADDITIONAL RENT

ARTICLE 7. OPERATING COSTS

ARTICLE 8. HOLDING OVER

ARTICLE 9. BUILDING SERVICES

ARTICLE 10. USE OF LEASED PREMISES

ARTICLE 11. COMPLIANCE WITH LAW

ARTICLE 12. ALTERATIONS AND REPAIRS

ARTICLE 13. ABANDONMENT

ARTICLE 14. ASSIGNMENT AND SUBLETTING

ARTICLE 15. SIGNS AND ADVERTISING

ARTICLE 16. DAMAGE TO PROPERTY, INJURY TO PERSONS

ARTICLE 17. TENANT'S INSURANCE

ARTICLE 18. DAMAGE OR DESTRUCTION

ARTICLE 19. ENTRY BY LANDLORD

ARTICLE 20. DEFAULT BY TENANT

ARTICLE 21. TAXES

ARTICLE 22. EMINENT DOMAIN

ARTICLE 23. SUBORDINATION TO MORTGAGES AND DEEDS OF TRUST

ARTICLE 24. ESTOPPEL CERTIFICATE

ARTICLE 25. WAIVER

ARTICLE 26. INABILITY TO PERFORM

ARTICLE 27. SUBROGATION

ARTICLE 28. APPENDICES

ARTICLE 29. SALE BY LANDLORD

ARTICLE 30. RIGHT OF LANDLORD TO PERFORM

ARTICLE 31. ATTORNEYS' FEES

ARTICLE 32. NOTICE

ARTICLE 33. SECURITY DEPOSIT

ARTICLE 34. RIGHTS RESERVED

ARTICLE 35. SUBSTITUTION OF SPACE

ARTICLE 36. REAL ESTATE BROKER

ARTICLE 37. MISCELLANEOUS PROVISIONS

ARTICLE 38 CONTINGENCY

APPENDIX "A" Leased Premises

APPENDIX "B" Legal Description of the Property

APPENDIX C Tenant Improvement Work Agreement

APPENDIX "C - 1" Space Plan

APPENDIX "D" Rules and Regulations

APPENDIX E Commencement Date Memorandum

APPENDIX "F" Letter of Credit Term Sheet

FIRST AMENDMENT TO LEASEQuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.7    
  

 
 

Healthe Tech, Inc    
    
    June 1, 2000    
  

  

 
 

OFFICE LEASE    
  

Basic Lease Provisions.  

        0.1    Parties:    This Lease, dated for reference purposes only, April 24, 2000, is made by and between Gatito
Enterprises Joint Venture, (Owner) and Healthe Tech, Inc (Tenant). 

        0.2    Premises:    Suite Number(s) n/a, which is 100% of the building's Gross Leasable Area. 

        0.3    Building:    Commonly described as the 325 Los Gatos-Saratoga Rd located in Los Gatos, Ca. 

        0.4    Use:    Research and development of health monitors. 

        0.5    Term:    5 years commencing June 1, 2000 ("Commencement Date") and ending May 31, 2005. 

        0.6    Base Rent:    $21,250. per month. (The base rent shall be adjusted as provided in paragraph 3.2.) 

        0.7    Address for Notices (if different than premises):    n/a 

        0.8    Prepaid Rent:    $23,250. 

        0.9    Security Deposit:    $23,250. 

        0.10    Addenda:    Exhibit "A", Site Plan n/a

                                        Exhibit
"B", Floor Plan n/a

                                        Exhibit
"C", Tenant Improvements

                                        Exhibit
"D", Tenant in Prior Possession

                                        Exhibit
"E", Rules and Regulations

                                        Exhibit
"F", Option to Extend

                                        Exhibit
"G", Disclosure

                                        Exhibit
"H", Guarantee of Lease

                                        Attachment
1 

i

  

 
 

TABLE OF CONTENTS    
  

	 
	 
	 	Page

	ARTICLE 1 DEFINITIONS	 	1
	 	1.1	Commencement Date	 	1
	 	1.2	Lease Term	 	1
	 	1.3	Property	 	1
	 	1.4	Leased Premises	 	1
	 	1.5	Building	 	1
	 	1.6	Tenants' Allocated Share	 	1
	 	1.7	Prepaid Rent	 	1
	 	1.8	Security Deposit	 	1
	 	1.9	Permitted Use	 	1
	 	1.10	Tenant's Minimum Liability Insurance Coverage	 	1
	 	1.11	Tenant Improvements	 	1
	 	1.12	Address for Notices	 	1
	 	1.13	Additional Definitions	 	2
	ARTICLE 2 LEASE, TERM AND POSSESSION	 	2
	 	2.1	Lease of Premises	 	2
	 	2.2	Construction of Tenant Improvements	 	2
	 	2.3	Delivery and Acceptance of Possession	 	2
	 	2.4	Early Occupancy	 	2
	ARTICLE 3 RENT	 	2
	 	3.1	Base Monthly Rent	 	2
	 	3.2	CPI Rent Adjustment	 	2
	 	3.3	Additional Rent	 	3
	 	3.4	Rent	 	3
	 	3.5	Payment of Rent	 	3
	 	3.6	Late Charges and Interest on Rent in Default	 	3
	 	3.7	Prepayment of Rent	 	3
	 	3.8	Security Deposit	 	3
	ARTICLE 4 USE OF LEASED PREMISES	 	4
	 	4.1	Limitation	 	4
	 	4.2	Compliance with Laws and Private Restrictions	 	4
	 	4.3	Insurance Requirements	 	4
	 	4.4	Outside Areas	 	4
	 	4.5	Signs	 	4
	 	4.6	Rules and Regulations	 	4
	 	4.7	Parking	 	5
	 	4.8	Window Covering	 	5
	 	4.9	Signs and Exterior Installations	 	5
	 	4.10	Auctions	 	6
	 	4.11	Locks	 	6
	ARTICLE 5 TRADE FIXTURES, LEASEHOLD IMPROVEMENTS AND LANDLORD IMPROVEMENTS	 	6
	 	5.1	Trade Fixtures	 	6
	 	5.2	Leasehold Improvements	 	6
	 	5.3	Alterations Required by Law	 	6
	 	5.4	Landlord's Improvements	 	6
	 	5.5	Liens	 	7

ii

 

	ARTICLE 6 REPAIR AND MAINTENANCE	 	7
	 	6.1	Tenant's Obligation to Maintain	 	7
	 	6.2	Landlord's Obligation to Maintain	 	8
	 	6.3	Tenant's Obligation to Reimburse	 	8
	 	6.4	Common Operating Expenses Defined	 	8
	 	6.5	Control of Common Area	 	9
	 	6.6	Tenant's Negligence	 	9
	 	6.7	Notice of Accidents or Defects	 	9
	ARTICLE 7 WASTE DISPOSAL AND UTILITIES	 	10
	 	7.1	Waste Disposal	 	10
	 	7.2	Utilities	 	10
	 	7.3	Overloading of Electrical Facilities	 	10
	 	7.4	Compliance with Governmental Regulations	 	10
	ARTICLE 8 REAL PROPERTY TAXES	 	11
	 	8.1	Real Property Taxes Defined	 	11
	 	8.2	Tenant's Obligations to Reimburse	 	11
	 	8.3	Taxes on Tenant's Property	 	12
	ARTICLE 9 INSURANCE	 	12
	 	9.1	Tenant's Insurance	 	12
	 	9.2	Landlord's Insurance	 	13
	 	9.3	Tenant's Obligation to Reimburse	 	13
	 	9.4	Releases and Waiver of Subrogation	 	13
	ARTICLE 10 LIMITATION ON LANDLORD'S LIABILITY AND INDEMNITY	 	14
	 	10.1	Limitation on Landlord Liability	 	14
	 	10.2	Indemnification of Landlord	 	14
	ARTICLE 11 DAMAGE TO LEASED PREMISES	 	14
	 	11.1	Landlord's Duty to Restore	 	14
	 	11.2	Landlord's Right to Terminate	 	15
	 	11.3	Tenant's Right to Terminate	 	15
	 	11.4	Abatement of Rent	 	15
	ARTICLE 12 CONDEMNATION	 	16
	 	12.1	Taking of Leased Premises	 	16
	 	12.2	Taking of Common Area	 	16
	 	12.3	Restoration Following the Taking	 	16
	 	12.4	Abatement of Rent	 	16
	 	12.5	Temporary Taking	 	16
	 	12.6	Division of Condemnation Award	 	17
	ARTICLE 13 DEFAULT AND REMEDIES	 	17
	 	13.1	Events of Tenant's Default	 	17
	 	13.2	Landlord's Remedies	 	17
	 	13.3	Landlord's Defaults and Tenant's Remedies	 	19
	ARTICLE 14 ASSIGNMENT AND SUBLETTING	 	20
	 	14.1	By Tenant	 	20
	 	14.2	By Landlord	 	22
	ARTICLE 15 TERMINATION	 	23
	 	15.1	Surrender of the Leased Premises	 	23
	 	15.2	Holding Over	 	23
	ARTICLE 16 GENERAL PROVISIONS	 	23
	 	16.1	Landlord's Right to Enter	 	23
	 	16.2	Subordination	 	24

iii

 

	 	16.3	Tenant's Attornment	 	24
	 	16.4	Mortgagee Protection	 	24
	 	16.5	Estoppel Certificates and Financial Statements	 	25
	 	16.6	Force Majeure	 	25
	 	16.7	Notice	 	25
	 	16.8	Attorneys' Fees	 	25
	 	16.9	Corporate Authority	 	25
	 	16.10	Additional Definitions	 	25
	 	16.11	Miscellaneous	 	26
	 	16.12	Limitation on Tenant's Recourse	 	27
	 	16.13	Brokerage Commissions	 	27
	 	16.14	Entire Agreement	 	27
	 	16.15	No Representations	 	27

iv

 
 

ARTICLE 1    
    
    DEFINITIONS    
  

        As used in this Lease, the following terms have the meanings hereafter set forth. 

        1.1    Commencement Date:    The date set forth in paragraph 0.5 of the Basic Lease Provisions (page
i) or the day after the first to occur of the following dates: 

        A.    The
date when all of the following have occurred: (i) the building department of the municipality in which the Leased Premises are located has completed its final
building inspection of the Improvements to be constructed by Landlord pursuant to Paragraph 2.2 and has approved such construction as substantially completed in accordance with local building
ordinances; (ii) Landlord's architect or contractor has notified Tenant in writing that all Improvements to be constructed by Landlord pursuant to Paragraph 2.2 have been substantially
completed and (iii) Landlord has offered to deliver possession of the Leased Premises to Tenant if Tenant will comply with the requirements of Paragraph 2.3; or 

        B.    The
date upon which Tenant actually occupies the Leased Premises with Landlord's written consent. 

        1.2    Lease Term:    The term of this Lease, which shall be for the period set forth in Paragraph 0.5 of the
Basic Lease Provisions (plus the partial month, if any, immediately following the Commencement Date) commencing on the Commencement Date. 

        1.3    Property:    The real property with all improvements now or hereafter located thereon described in the site
plan attached hereto as Exhibit A provided, however, that Landlord may change the boundaries and composition of the Property by adding or removing land and/or buildings, and thereafter the term
"Building" shall refer to such real property as so enlarged or reduced, and the amount of the "Property Gross Leasable Area" shall be appropriately adjusted. 

        1.4    Leased Premises:    Those certain premises located within the Building as outlined on a site plan attached
hereto as Exhibit A and as shown by the floor plan attached hereto as Exhibit B, containing approximately the square feet set forth in Paragraph 0.2 of the Basic Lease Provisions
("Tenant's Gross
Leasable Area"), and commonly known by the suite number set forth in Paragraph 0.2 of the Basic Lease Provisions. 

        1.5    Building:    The structure set forth in Paragraph 0.3 of the Basic Lease Provisions in which the Leased
Premises are located. 

        1.6    Tenants' Allocated Share:    The percentage obtained by dividing Tenant's Gross Leasable Area by the Building
Gross Leasable Area, which as of the Effective Date hereof is agreed to be the percentage set forth in Paragraph 0.2 of the Basic Lease Provisions, and which is subject to modification in the
event of increase in the Building Gross Leasable Area. 

        1.7    Prepaid Rent:    The sum set forth in Paragraph 0.8 of the Basic Lease Provisions. 

        1.8    Security Deposit:    The sum set forth in Paragraph 0.9 of the Basic Lease Provisions. 

        1.9    Permitted Use:    The use set forth in Paragraph 0.4 of the Basic Lease Provisions. 

        1.10    Tenant's Minimum Liability Insurance Coverage:    The sum of not less than $3,000,000 in respect of any one
occurrence and not less than $1,000,000 for injury or a death of a single person and not less than $500,000 in respect of any single instance of property damage. 

        1.11    Tenant Improvements:    The Improvements to be constructed by Landlord pursuant to Paragraph 2.2, as
depicted in Exhibit C attached hereto. 

        1.12    Address for Notices:    The following: 

        A.    In
the case of Landlord, 1901 S. Bascom Avenue, Suite 1325, Campbell, CA 95008. 

 

        B.    In
the case of Tenant, the Premises, or alternatively, the address set forth in Paragraph 0.7 of the Basic Lease Provisions. 

        1.13    Additional Definitions:    As used in this Lease or any addendum or amendment hereto, the following terms
shall have the meanings set forth in Paragraph 16.10: "Agreed Interest Rate," "Common Area," "Effective Date," "Law," "Leasehold Improvements," "Lender," "Private Restrictions," and "Trade
Fixtures." 

 
 

ARTICLE 2    
    
    LEASE, TERM AND POSSESSION    
  

        2.1    Lease of Premises:    Landlord hereby leases to Tenant, and Tenant leases from Landlord, for the Lease Term
upon the terms and conditions of this Lease, the Leased Premises together with (i) the non-exclusive right to use parking spaces within the Common Area (subject to the limitations
set forth in Paragraph 4.7), and (ii) the non-exclusive right to use the surface of the Common Area for ingress to and egress from the Leased Premises. Tenant's lease of the
Leased Premises shall be subject to (i) all Laws, (ii) all Private Restrictions, easements, and other matters of public record, and (iii) the reasonable rules and regulations from
time to time promulgated by Landlord pursuant to Paragraph 4.6. 

        2.2    Construction of Tenant Improvements:    Landlord shall construct the Improvements for Tenant's use in the
Leased Premises described in Exhibit C attached hereto (the "Tenant Improvements"). As soon as (i) this Lease becomes effective, (ii) Landlord has received the Prepaid Rent and
the Security Deposit, and (iii) the plans for the Improvements are complete, Landlord shall apply for all necessary governmental approvals. After such governmental approvals have been obtained,
Landlord shall commence and diligently prosecute to completion the construction of the Tenant Improvements, but without representation or warranty as to when such improvements will be completed. 

        2.3    Delivery and Acceptance of Possession:    Landlord shall deliver possession of the Leased Premises to Tenant as
soon as practicable following substantial completion of the Tenant Improvements; provided, however, that Landlord shall not be obligated to deliver possession nor shall Tenant be entitled to take
possession of or operate its business in the Leased Premises until Landlord and Tenant have executed a Certificate of Lease Commencement in the form attached hereto as Exhibit D, appropriately
completed. By taking possession of the Leased Premises, Tenant shall be conclusively deemed to have accepted the Leased Premises in its then existing condition, "AS IS", and all construction work
required of Landlord
as satisfactorily completed, subject only to punchlist items and other matters noted in the supplemental agreement executed by Landlord and Tenant. 

        2.4    Early Occupancy:    If Tenant enters into occupancy of the Leased Premises prior to the Commencement Date with
the written permission of Landlord, it shall do so upon all of the terms of this Lease (including its obligations regarding indemnity and insurance) except those regarding the obligation to pay Base
Monthly Rent, which shall commence on the Commencement Date. 

 
 

ARTICLE 3    
    
    RENT    
  

        3.1    Base Monthly Rent:    Commencing on Commencement Date and continuing throughout the Lease Term, Tenant shall
pay to Landlord a monthly rent (the "Base Monthly Rent"), which shall be the amount set forth in Paragraph 0.6 of the Basic Lease Provisions. 

        3.2    CPI Rent Adjustment:    The Base Monthly Rent shall be adjusted on each anniversary of the term of the Lease by
the percentage change that occurs in the Consumer Price Index, All Urban 

2

 

Consumers, for the San Francisco, Oakland, San Jose metropolitan area, All Items (1982-84 = 100 base), as published by the Bureau of Labor Statistics, United States Department of
Labor. However, in no event shall the Base Monthly Rent be less than that set forth in Paragraph 3.1. 

        3.3    Additional Rent:    Commencing on the Commencement Date and continuing throughout the Lease Term, Tenant shall
pay, as additional rent (the "Additional Rent"), (i) any late charges or interest due Landlord pursuant to Paragraph 3.6, (ii) Tenant's share of the amortized cost of certain
additional improvements as provided in Paragraph 5.4, (iii) Tenant's share of Common Operating Expenses as provided in Paragraph 6.3, (iv) Tenant's share of Real Property
Taxes as provided in Paragraph 8.2, (v) Landlord's share of the consideration received by Tenant from Transfers as provided in Paragraph 14.1, and (vi) any other charges
due Landlord pursuant to this Lease. 

        3.4    Rent:    The Base Monthly Rent, as adjusted from time to time, and the Additional Rent are collectively
referred to in this Lease as "Rent." 

        3.5    Payment of Rent:    All Rent required to be paid in monthly installments shall be paid in advance on the first
day of each calendar month during the Lease Term. All Rent shall be paid in lawful money of the United States, without any abatement, deduction or offset whatsoever, and without any prior demand
therefor, to Landlord at its address set forth above or at such other place as Landlord may designate from time to time. Tenant's obligation to pay Rent shall be prorated at the commencement and
expiration of the Lease Term. 

        3.6    Late Charges and Interest on Rent in Default:    If any Rent is not received by Landlord within five
(5) days after it becomes due, Tenant shall immediately pay to Landlord a late charge equal to five percent (5%) of such delinquent Rent. Landlord and Tenant agree that this late charge is fair
compensation for loss resulting from Tenant's failure to make timely payment. In no event shall this provision for a late charge be deemed to grant Tenant a grace period or extension of time within
which to pay any Rent or prevent Landlord from exercising any right or remedy available to Landlord upon Tenant's failure to pay any Rent due under this Lease in a timely fashion or for any other
default, including Landlord's right to terminate this Lease. If any Rent remains delinquent for a period of thirty (30) days, then, in addition to such late charge, Tenant shall pay to Landlord
interest on such Rent at the Agreed Interest Rate from the thirtieth (30th) day following the date such amount came due until paid. 

        3.7    Prepayment of Rent:    Tenant has paid to Landlord the Prepaid Rent concurrently with its execution of this
Lease, as prepayment of Rent for credit against the first installment(s) of Base Monthly Rent due hereunder. 

        3.8    Security Deposit:    Tenant has deposited with Landlord the Security Deposit as security for the performance by
Tenant of the terms of this Lease to be performed by Tenant, and not as a prepayment of Rent. Landlord may apply such portion or portions of the Security Deposit as are reasonably necessary for the
following purposes: (i) to remedy any default by Tenant in the payment of Rent; (ii) to repair damage to the Leased Premises caused by Tenant; (iii) to clean the Leased Premises
upon termination of the Lease; and (iv) to remedy any other default of Tenant as permitted by law. Tenant hereby waives the benefit of any restriction on the uses to which the Security Deposit
may be put contained in California Civil Code Section 1950.7 or any similar or successor law. In the event the Security Deposit or any portion thereof is so used, Tenant shall pay to Landlord
promptly upon demand an amount in cash sufficient to restore the Security Deposit to the full original sum. Landlord shall not be deemed a trustee of the Security Deposit. Landlord may use the
Security Deposit in Landlord's ordinary business and shall not be required to segregate it from its general accounts. Tenant shall not be entitled to any interest on the Security Deposit. 

3

 

 
 

ARTICLE 4    
    
    USE OF LEASED PREMISES    
  

        4.1    Limitation:    Tenant shall continuously use the Leased Premises throughout the Lease Term solely for the
Permitted Use and for no other use. Tenant shall not do anything in or about the Premises which will (i) interfere with the rights of other occupants of the Property, (ii) cause
structural injury to the Property, or (iii) cause damage to any part of the Property except to the extent reasonably necessary for the installation of Tenant's equipment and Trade Fixtures, and
then only in a manner which has been first approved by Landlord. Tenant shall not operate any equipment within the Leased Premises which will injure, vibrate or shake the Leased Premises or the
Building, which will overload existing electrical systems or other mechanical equipment servicing the Leased Premises or Building, or which will impair the efficient operation of the sprinkler system
(if any) or the heating, ventilating or air conditioning ("HVAC") equipment servicing the Leased Premises or the Building. Tenant shall cause any dust, fumes or waste products generated by Tenant's
use of the Leased Premises to be contained and disposed of so that they do not (i) create a fire or health hazard, (ii) damage the Leased Premises, or (iii) interfere with the
businesses of other tenants of the Property. Tenant shall cause all noise or odors generated by Tenant's use of the Leased Premises to be contained or muffled so that they do not interfere with the
businesses of other tenants of the Property. Tenant shall not change the exterior of the Building or install any equipment or antennas on or make any penetrations in the exterior or roof of the
Building. Tenant shall not commit any waste in or about the Leased Premises and Tenant shall keep the Leased Premises in a clean, attractive and wholesome condition, free from any nuisances and shall
deposit all trash and debris in containers designated by Landlord for such purpose. 

        4.2    Compliance with Laws and Private Restrictions:    Tenant shall not use the Leased Premises in any manner which
violates any Laws or Private Restrictions. Tenant shall promptly comply with all Laws and Private Restrictions, and cause the Leased Premises to so comply and shall indemnify and hold Landlord
harmless from any liability resulting from Tenant's failure to do so. 

        4.3    Insurance Requirements:    Tenant shall not use the Leased Premises in any manner which will cause the existing
rate of insurance upon the Building or the Property to be increased or cause a cancellation of any insurance policy covering the Building or the Property. Tenant shall not sell, keep or use any
article in or about the Leased Premises which is prohibited by the Landlord's fire and property damage insurance. Tenant shall comply with all requirements of any insurance company, insurance
underwriter, or Board of Fire Underwriters which are necessary to maintain, at standard rates, the insurance coverage carried by either Landlord or Tenant pursuant to this Lease. 

        4.4    Outside Areas:    No materials, supplies, equipment, finished or semi-finished products, raw
materials, or articles of any nature shall be stored upon or permitted to remain outside of the Leased Premises
except in fully fenced and screened areas outside the Building which have been designed for such purpose and have been approved in writing by Landlord for such use by Tenant. 

        4.5    Signs:    Tenant shall not place on any portion of the Property any sign, placard, lettering in or on windows,
banner, displays, or other advertising or communicative material which is visible from the exterior of the Building without the prior written approval of Landlord. All such approved signs shall
strictly conform to all Laws, Private Restrictions, and the Rules and Regulations and shall be installed at the expense of Tenant. If Landlord so elects, Tenant shall, at the expiration or sooner
termination of this Lease, remove all signs installed by it and repair any damage caused by such removal, including but not limited to painting of the repaired surface. Tenant shall at all times
maintain such signs in good condition and repair. 

        4.6    Rules and Regulations:    Landlord may from time to time establish amend and/or revoke reasonable and
nondiscriminatory rules and regulations applicable to all occupants of the Property for 

4

 

the safety, care, cleanliness and orderly management of the Property. Such Rules and Regulations shall be binding upon Tenant upon delivery of a copy thereof to Tenant, and Tenant agrees to abide by
such rules and regulations. The current Rules and Regulations are attached to this Lease as Exhibit E. As of the date of this Lease, there are no Rules and Regulations separate from this Lease.
If there is a conflict between the rules and regulations and any of the provisions of this Lease, the provisions of this Lease shall prevail. The Rules and Regulations contained in Exhibit "E" shall
form a part of this Lease and the remedies available to Landlord for their enforcement shall be the same as for enforcement of any other provision of this Lease. Landlord may from time to time
in its sole discretion promulgate additional reasonable Rules and Regulations, which shall as soon as Tenant is given notice of them have full force and effect as if originally embodied in this Lease.
Any such additional Rules and Regulations may effect alterations to existing Rules and Regulations and may deal with the matters dealt within the Rules and Regulations contained in Exhibit "E", if
any, and any other matters of a similar or dissimilar nature as the Landlord deems advisable, but may not conflict with any specific provisions of this Lease. Landlord shall be under no obligation to
enforce the Rules and Regulations against the Tenant, or against any other tenant of the Property or any other person, and shall be under no liability for failure to enforce them. Landlord shall not
be responsible for the violation of any such Rules and Regulations by any other occupant of the Property. 

        4.7    Parking:    Tenant shall not have the exclusive right to use any specific parking space, unless specifically
provided for in this Lease. Landlord reserves the right to have any vehicles owned by Tenant's employees towed away at Tenant's cost. Tenant shall not at any time park or permit the parking of its
vehicles or the vehicles of others adjacent to loading areas so as to interfere in any way with the use of such loading areas, nor shall Tenant at any time park or permit the parking of its vehicles
or the vehicles of others on any portion of the Property not designated by Landlord as a parking area. All trucks and delivery vehicles used for delivering goods to Tenant shall be (i) parked
at the rear of the building, (ii) loaded and unloaded in a manner which does not interfere with the businesses of other occupants of the Property, and (iii) permitted to remain on the
Property only so long as is reasonably necessary to complete loading and unloading. In the event Landlord elects or is required by any Law to limit or control parking in the Property, whether by
validation of parking tickets or by any other method, Tenant agrees to participate in such validation or other program under such reasonable rules and regulations as are from time to time established
by Landlord. 

        4.8    Window Covering:    If Landlord designates a standard window covering for use throughout the Building, Tenant
shall use this standard window covering to cover all windows in the Leased Premises. 

        4.9    Signs and Exterior Installations:    

	(a)
	Tenant
shall be entitled to an identification sign at or near the entrance to the Leased Premises, to be subject to the prior written approval of Landlord as to design, size and
location, and to be installed at Tenant's expense and in accordance with any uniform pattern of signs which may be adopted by Landlord. Landlord reserves the right to attend to such installation and
bill Tenant therefor.

	(b)
	Tenant
shall not, without the prior written consent of Landlord, erect, install or maintain any sign, lettering, placard or any other advertising material of whatsoever nature or
size, painted upon, posted upon or otherwise affixed to the exterior of the Building or the exterior of the Leased Premises, or within the Common Areas or affixed to either side of any glass on the
windows or doors of the Leased Premises.

	(c)
	Tenant
shall not install any exterior lighting, plumbing or electrical lines, shades, awnings, exterior decorations or painting or marking, or erect or permit any insignia, barrier,
aerial mast or other device or installation on the exterior of the Leased Premises without the prior written consent of Landlord. 

5

 

        4.10    Auctions:    Tenant shall not conduct or permit to be conducted on any portion of the Leased Premises, the
Building, or the Property any sale of any kind, including: (i) any public or private auction, fire sale, going-out-of-business sale, distress sale, or other
liquidation sale; or (ii) any so-called "flea market," open-air market, or other similar activity. 

        4.11    Locks:    Tenant shall not install, permit the installation of, or change any lock, bolt, fastening or other
security device on any door of the Leased Premises without the prior written consent of Landlord. 

 
 

ARTICLE 5    
    
    TRADE FIXTURES, LEASEHOLD IMPROVEMENTS
  AND LANDLORD IMPROVEMENTS    
  

        5.1    Trade Fixtures:    Throughout the Lease Term, Tenant shall provide, install, and maintain in good condition all
Trade Fixtures required for the conduct of its business in the Leased Premises. All Trade Fixtures shall remain Tenant's property. 

        5.2    Leasehold Improvements:    Tenant shall not construct any Leasehold Improvements or otherwise alter the Leased
Premises without Landlord's prior approval if the cost thereof exceeds One Thousand Dollars ($1,000.00) or such work affects the structural parts or exterior of the Building, and not until Landlord
shall have first approved plans and specifications therefor, which approvals shall not be unreasonably withheld. All such approved Leasehold Improvements shall be installed (i) by Tenant at
Tenant's expense using a licensed contractor first approved by Landlord, and (ii) in substantial compliance with the approved plans and specifications therefor. All construction done by Tenant
shall be done in accordance with all Laws and in a good and workmanlike manner using new materials of good quality. Tenant shall not commence construction of any Leasehold Improvements until
(i) all required governmental approvals and permits have been obtained and copies thereof delivered to Landlord, (ii) all requirements regarding insurance imposed by this Lease have been
satisfied and certificates thereof have been delivered to Landlord, (iii) Tenant shall have given Landlord at least five (5) days prior written notice of its intention to commence such
construction, (iv) Tenant shall have notified Landlord by telephone of the commencement of construction on the day it commences, and (v) if requested by Landlord, Tenant shall have
obtained contingent liability and broad form builder's risk insurance in an amount satisfactory to Landlord if there are any perils relating to the proposed construction not covered by insurance
carried pursuant to Article 9. All Leasehold Improvements shall remain the property of Tenant during the Lease Term but shall not be altered, or removed from the Leased Premises. At the
expiration or sooner termination of the Lease Term, all Leasehold Improvements shall be surrendered to Landlord as part of the realty and shall then become Landlord's property, and Landlord shall have
no obligation to reimburse Tenant from all or any portion of the value or cost thereof; provided, however, that if Landlord requires Tenant to remove any Leasehold Improvements in accordance with the
provisions of Paragraph 15.1, then Tenant shall so remove such Leasehold Improvements prior to the expiration or sooner termination of the Lease Term. 

        5.3    Alterations Required by Law:    Tenant shall make any alteration, addition or change of any sort, whether
structural or otherwise, to the Leased Premises that is required by any Law because of (i) Tenant's use or change of use of the Leased Premises, (ii) Tenant's application for any permit
for governmental approval, or (iii) Tenant's construction or installation of any Leasehold Improvements or Trade Fixtures. 

        5.4    Landlord's Improvements:    All fixtures, improvements or equipment which are installed or constructed on or
attached to the Property by Landlord at its expense shall become part of the realty and belong to Landlord. Tenant shall pay Additional Rent in the event Landlord, in its sole discretion, elects to
make any of the following kinds of capital improvements to the Property: (i) capital improvements required to be constructed in order to comply with any Law not in affect or applicable 

6

 

to the Property as of the Effective Date; (ii) modification of existing or construction of additional capital improvements or building service equipment for the purpose of reducing the
consumption of utility services or Common Operating Expenses of the Property; and (iii) replacement of capital improvements or building service equipment existing as of the Effective Date when
required because of normal wear and tear or obsolescence. The amount of Additional Rent the Tenant is to pay with respect to each such capital improvement shall be determined as follows: 

        A.    All
costs paid by Landlord to construct such improvements (including financing costs) shall be amortized over the useful life of such improvements (as reasonably
determined by Landlord) with interest on the unamortized balance at the then prevailing market rate Landlord would pay if it borrowed funds to construct such improvements from an institutional lender,
and Landlord shall inform Tenant of the monthly amortization payment required to so amortize such costs, and shall also provide Tenant with the information upon which such determination is made. 

        B.    As
Additional Rent, Tenant shall pay an amount equal to Tenant's Allocated Share of that portion of such monthly amortization payment fairly allocable to the Building (as
reasonably determined by the Landlord) for each month after such improvement is completed until the first to occur of (i) the expiration of the Lease Term, or (ii) the end of the term
over which such costs were amortized, which amount shall be due at the same time the Base Monthly Rent is due. 

        5.5    Liens:    Tenant shall keep the Leased Premises and the Property free from any liens and shall pay when due all
bills arising out of any work performed, materials furnished, or obligations incurred by Tenant, its agents, employees or contractors relating to the Leased Premises. If a claim of lien is reported,
Tenant shall bond against or discharge the same within ten (10) days after the same has been recorded against the Leased Premises and/or the Property. Should any lien be filed against the
Leased Premises or any action commenced affecting title to the Leased Premises, the party receiving notice of such lien or action shall immediately give the other party written notice thereof. 

 
 

ARTICLE 6    
    
    REPAIR AND MAINTENANCE    
  

        6.1    Tenant's Obligation to Maintain:    Except as otherwise provided in Article 11 regarding the restoration
of damage caused by fire and other perils, Tenant shall, at all times during the Lease Term, clean, keep, and maintain in good order, condition, and repair the Leased Premises and every part thereof,
through regular inspections and servicing, including but not limited to (i) all plumbing and sewage facilities (including all sinks, toilets, faucets and drains) and all ducts, pipes, vents or
other parts of the HVAC or plumbing system, (ii) all fixtures, interior walls, floors, carpets, and ceilings, (iii) all windows, doors, entrances, plate glass, showcases, and skylights
(including cleaning both interior and exterior surfaces), (iv) all electrical facilities, wiring and equipment, including lighting fixtures, lamps, bulbs and tubes, fans, vents, exhaust
equipment and systems, and (v) any automatic fire extinguisher equipment in the Leased Premises. With respect to utility facilities serving the Leased Premises (including electrical wiring and
conduits, gas lines, water pipes, and plumbing and sewage fixtures and pipes), Tenant shall be responsible for the maintenance and repair of any such facilities which serve only the Leased Premises,
including all such facilities that are within the walls, floor, or roof of the Leased Premises and any part of such facilities that is not within the Leased Premises, but only up to the point where
such facilities join a main or other junction (e.g., sewer main or electrical transformer) from which such utility services are distributed to other parts of the Property as well as to the Leased
Premises. Tenant shall replace any damaged or broken glass in the Leased Premises (including all interior and exterior doors, windows, and showcases) with glass of the same kind, size, and quality.
Tenant shall repair any damage to the Leased Premises (including exterior doors and windows) caused by vandalism or any unauthorized entry. Tenant shall maintain, repair and replace when necessary all
HVAC equipment which serves only the Leased Premises and shall keep the same in good condition 

7

 

through regular inspection and servicing and all repairs and replacements required of Tenant shall be promptly made with new materials of like kind and quality. If the work affects the structural
parts or exterior of the Building, or if the estimated cost of any item of repair or replacement exceeds One Thousand Dollars ($1,000.00), then Tenant shall first obtain Landlord's written approval of
the scope of the work, plans therefor, materials to be used, and the contractor. 

        6.2    Landlord's Obligation to Maintain:    Landlord shall repair, maintain, replace and operate the Common Area and
repair and maintain the roof, exterior and structural parts of the Building located on the Property so that the same are kept in good order and repair. If there is central HVAC or other building
service equipment and/or utility facilities servicing portions of the Common Area and/or both the Leased Premises and other parts of the Building, Landlord shall maintain and operate (and replace when
necessary) such equipment. Landlord shall cause the exterior windows of the Premises and the Building to be washed on a regular basis as determined by Landlord but no less often than once every ninety
(90) days. Landlord shall not be responsible for repairs required by any accident, fire or other peril except as otherwise required by Article 11, or for damage caused to any part of the
Property by any act, negligence of Tenant or its agents, contractors, employees or invitees. Landlord may engage contractors of its choice to perform the obligations required by this Article, and the
necessity of any expenditure made to perform such obligations shall be at the sole discretion of Landlord. It is an express condition precedent to all obligations of Landlord to repair and maintain
that Tenant shall have notified Landlord of the need for such repairs and maintenance. 

        6.3    Tenant's Obligation to Reimburse:    As Additional Rent, Tenant shall pay Tenant's Allocated Share of all
Common Operating Expenses (as defined below). Payment shall be made by whichever of the following methods is designated from time to time, by Landlord, and Landlord may change the method of payment at
any time. Tenant shall pay such share of the actual Common Operating Expenses
incurred or paid by Landlord but not previously billed to Tenant within ten (10) days after receipt of a written bill from Landlord, on such periodic basis as Landlord shall designate, but in
no event more frequently than monthly. Alternatively, (i) Landlord shall deliver to Tenant Landlord's reasonable estimate of the Common Operating Expenses it anticipates will be paid or
incurred for the calendar year in question, (ii) during such calendar year, Tenant shall pay such share of the estimated Common Operating Expenses in advance in equal monthly installments due
with the installment of Base Monthly Rent, and (iii) within ninety (90) days after the end of such calendar year, Landlord shall furnish to Tenant a statement in reasonable detail of the
actual Common Operating Expenses paid or incurred by Landlord in accordance with this Article during the just ending calendar year, and thereupon there shall be an adjustment between Landlord and
Tenant, with payment to or repayment and/or credit by Landlord, as the case may require, within ten (10) days after delivery by Landlord to Tenant of said statement, to the end that Landlord
shall receive the entire amount of Tenant's share of all Common Operating Expenses for such calendar year and no more. Tenant shall have the right, exercisable upon reasonable prior notice to Landlord
in writing, to inspect Landlord's books and records relating to the Common Operating Expenses at Landlord's property manager's office within thirty (30) days of receipt of any annual statement
for the same, for the purposes of verifying the charges contained in such statement. Tenant may not withhold payment pending completion of such inspection. Landlord's failure to timely furnish such
reconciliation shall not affect Landlord's rights under this Section 6.3. 

        6.4    Common Operating Expenses Defined:    The term "Common Operating Expenses" shall mean the sum of the following: 

        A.    All
costs and expenses paid or incurred by Landlord in doing the following (including payments to independent contractors providing services related to the performance of
the following): (i) maintaining, cleaning, repairing and resurfacing the roof (including repair of leaks) and the exterior surfaces (including painting) of the Building located on the Property;
(ii) maintenance and repair of the structural part (including roof, foundation, floor slab and load 

8

 

bearing walls) of the Building located on the Property; (iii) maintenance of the liability, fire and property damage insurance covering the Property carried by Landlord pursuant to
Paragraph 9.2 (including the payment of deductibles of up to $2,500.00 per occurrence and the pre-payment of premiums of coverage for up to one year); (iv) maintaining,
repairing, operating, and replacing, when necessary, HVAC equipment, utility facilities, and other building service equipment; (v) complying with all Laws and Private Restrictions, including
payment of charges assessed pursuant to any Private Restrictions; (vi) operating, maintaining, repairing, cleaning, painting, restripping, and resurfacing the Common Area; (vii) periodic
window washing and pest extermination; (viii) providing water, sewer service and general waste pickup; (ix) replacement or installation of lighting fixtures, directional or other
signals, irrigation systems and all landscaping in the Common Area; and (x) initiating and prosecuting applications for reduction in the assessed value of the Property for property tax
purposes. 

        B.    All
additional costs and expenses paid or incurred by Landlord with respect to the operation, protection, maintenance, repair or replacement of the Property which for
federal income tax purposes would be considered a deductible business expense. 

        C.    That
portion of all compensation (including benefits and premiums for worker's compensation and other insurance) paid to, or for the benefit of, employees of Landlord
involved in the performance of the work described by subparagraphs A and B above that is fairly allocable to the Property; and 

        D.    As
compensation to Landlord for accounting and management service rendered, an additional amount equal to ten percent (10%) of the sum of (i) the total cost and
expenses described in subparagraphs A, B and C above, and (ii) all Real Property Taxes. 

        6.5    Control of Common Area:    Landlord shall at all times have exclusive control of the Common Area. Landlord
shall have the right, without the same constituting an actual or constructive eviction and without entitling Tenant to any abatement of Rent, to: (i) close any part of the Common Area to
prevent a dedication thereof or the accrual of any prescriptive rights therein; (ii) temporarily close the Common Area to perform maintenance; (iii) designate other property outside the
boundaries of the Property to become part of the Property; (iv) construct multi-deck parking structures on any part of the Common Area; (v) change the shape, size, or
location of the Common Area; (vi) eliminate or add any buildings or improvements; (vii) make changes to the Common Area including, without limitation, changes in the location of
driveways, entrances, passageways, doors and doorways, elevators, stairs, restrooms, exits, parking spaces, parking areas, sidewalks or the direction of flow of traffic; and/or (viii) change
the name or address of the Building. Landlord reserves the right to use the air space above the Common Area for the construction of improvements or for any other purpose so long as such use does not
unreasonably interfere with the non-exclusive right to use the surface of the Common Area granted to Tenant by this Lease. In exercising any such rights regarding the Common Area, Landlord
shall (i) make a reasonable effort to minimize any disruption to Tenant's business, and (ii) not change the Building in any way which materially affects Tenant's use without Tenant's
consent, which shall not unreasonably be withheld. 

        6.6    Tenant's Negligence:    Tenant shall pay for all damage to the Property caused by the negligent act or omission
of Tenant, its agents, employees, contractors, or invitees or by the failure of Tenant to comply with the terms of this Lease, except as otherwise provided by Paragraph 9.4. Tenant shall make
payment therefor upon demand by Landlord. 

        6.7    Notice of Accidents or Defects:    Tenant shall give Landlord prompt notice of any accident to or any defect in
the plumbing, electrical or mechanical facilities or installations or any part of the Building or the Leased Premises. 

9

 

 
 

ARTICLE 7    
    
    WASTE DISPOSAL AND UTILITIES    
  

        7.1    Waste Disposal:    Tenant shall store its waste either inside the Leased Premises or in containers with lids
that are kept closed (e.g., dumpsters) located within outside trash enclosures that are (i) fully fenced and screened in compliance with all Laws and Private Restrictions, (ii) designed
for such purpose to be used exclusively by Tenant or in common with other occupants of the Property, as designated by Landlord, and (iii) first approved by Landlord. All entrances to all
outside trash enclosures shall be kept closed and waste shall be stored in containers in such manner so that the container lids are kept closed and such waste is not visible from the exterior of such
outside enclosures. Tenant shall cause all of its waste to be regularly removed from the Property. Tenant shall keep all fire corridors and mechanical equipment rooms in the Leased Premises free and
clear of all obstructions at all times. 

        7.2    Utilities:    Tenant shall promptly pay, as the same becomes due, all charges for gas, electricity, specialized
waste pick-up required for Tenant's business, and any other utilities, materials or services furnished directly to or used by Tenant on or about the Leased Premises during the Lease Term.
If any utility service is not separately metered to the Leased Premises, then Tenant shall pay its pro rata share of the cost of such utility service with all others served by the service not
separately metered. If, however, Landlord determines that Tenant is using a disproportionate amount of any utility service not separately metered, the Landlord at its election may
(i) periodically charge Tenant, as Additional Rent, a sum equal to Landlord's estimate of the costs of Tenant's excess use of such service or (ii) install a separate meter to measure the
utility service supplied to the Leased Premises, at Tenant's cost. 

        7.3    Overloading of Electrical Facilities:    Tenant shall not overload the electrical facilities of the Leased
Premises or the Property. If any equipment desired by Tenant would overload the electrical/mechanical facilities inside the Leased Premises, Tenant shall forthwith at its expense make whatever changes
are necessary to comply with the requirements of applicable authorities or insurance underwriters, but no changes shall be made until Tenant first submits to Landlord plans and specifications for such
changes and obtains Landlord's written approval. If any proposed equipment would overload the electrical or mechanical facilities outside the Leased Premises, Tenant shall not install such equipment
unless it shall first have made arrangements satisfactory to Landlord for the alteration of the electrical facilities of the Property on such terms as Landlord may permit and at Tenant's expense. 

        7.4    Compliance with Governmental Regulations:    Landlord and Tenant shall comply with all rules, regulations and
requirements promulgated by national, state or local governmental agencies or utility suppliers concerning the use of utility services, including any rationing, limitation, or other control. Landlord
may cooperate voluntarily in any reasonable manner with the efforts of all governmental agencies or utility suppliers in reducing the consumption of energy or other resources. Tenant shall not be
entitled to terminate this Lease nor to any abatement of Rent by reason of any such compliance or
cooperation. Tenant agrees at all times to cooperate fully with Landlord and to abide by all rules, regulations and requirements which Landlord may prescribe in order to maximize the efficiency of the
HVAC system and all other utility systems. 

10

  

 
 

ARTICLE 8    
    
    REAL PROPERTY TAXES    
  

        8.1    Real Property Taxes Defined:    The term "Real Property Taxes" as used herein shall mean (i) all taxes,
assessments, levies, and other charges of any kind or nature whatsoever, general and special, foreseen and unforeseen (including all installments of principal and interest required to pay for any
general or special assessments for public improvements, services, or benefits and any increases resulting from reassessments caused by any change in ownership, new construction, or change in
valuation), now or hereafter imposed by any governmental or quasi-governmental authority or special district having the direct or indirect power to tax or levy assessments which are levied or assessed
against or with respect to (a) the value, occupancy or use of the Property (as now constructed or as may at any time hereinafter be constructed, altered, or otherwise changed), (b) the
fixtures, equipment and other real or personal property of Landlord that are an integral part of the Property, (c) the gross receipts, income and rentals from the Property, or (d) the
use of the Common Areas, public utilities or energy within the Property, (ii) all charges, levies or fees imposed by reason of environmental regulation or other governmental control of the
Property, (iii) any excise, transaction, sales, privilege or other tax now or hereafter imposed upon Landlord as a result of this Lease, and (iv) all costs and fees (including attorneys'
fees) incurred by Landlord in contesting any Real Property Tax and in negotiating with public authorities as to any Real Property Tax. If at any time during the Lease Term the taxation or assessment
of the Property prevailing as of the Effective Date shall be altered so that in lieu of or in addition to any Real Property Tax described above there shall be levied, assessed or imposed (whether by
reason of a change in the method of taxation or assessment, creation of a new tax or charge, or any other cause) an alternative, substitute or additional tax or charge (i) on the value, use or
occupancy of the Property, (ii) on or measured by the gross receipts, income or rentals from the Property, or on Landlord's business of leasing the Property, or (iii) computed in any
manner with respect to the operation of the Property, then any such tax or charge, however designated, shall be included within the meaning of the term "Real Property Taxes" for purposes of this
Lease. If any Real Property Tax is based upon property or rents unrelated to the Property, then only that part of such Real Property Tax that is fairly allocable to the Property shall be included
within the meaning of the term "Real Property Taxes". Notwithstanding the foregoing, the term "Real Property Taxes" shall not include estate, inheritance, transfer, gift or franchise taxes of Landlord
or the federal or state net income tax imposed on Landlord's income from all sources. 

        8.2    Tenant's Obligations to Reimburse:    As Additional Rent, Tenant shall pay Tenant's Allocated Share of all Real
Property Taxes which become due during the Lease Term. Payment shall be made by whichever of the following methods is designated from time to time, by Landlord, and Landlord may change the method of
payment at any time. Tenant shall pay such share of the actual Real Property Taxes incurred or paid by Landlord but not previously billed to Tenant within ten (10) days after receipt of a
written bill from Landlord, on such periodic basis as Landlord shall designate, but in no event more frequently than monthly. Alternatively, (i) Landlord shall deliver to Tenant Landlord's
reasonable estimate of the Real Property Taxes it anticipates will be paid or incurred for the calendar year in question, (ii) during such calendar year, Tenant shall pay such share of the
estimated Real Property Taxes in advance in equal monthly installments due with the installment of Base Monthly Rent, and (iii) within ninety (90) days after the end of such calendar
year, Landlord shall furnish to Tenant a statement in reasonable detail of the actual Real Property Taxes paid or incurred by Landlord in accordance with this Article during the just ending calendar
year, and thereupon there shall be an adjustment between Landlord and Tenant, with payment to or repayment and/or credit by Landlord, as the case may require, within ten (10) days after
delivery by Landlord to Tenant of said statement, to the end that Landlord shall receive the entire amount of Tenant's share of all Real Property Taxes for such calendar year and no more. If requested
by Tenant in writing within thirty (30) days of receipt of a bill for Tenant's Allocated Share of Real Property Taxes, Landlord shall furnish Tenant with such 

11

 

evidence as is reasonably available to Landlord with respect to the amount of any Real Property Tax which is a part of such bill. Tenant may not withhold payment of such bill pending receipt and/or
review of such evidence. If any Lender requires Landlord to impound Real Property Taxes on a periodic basis during the Lease Term, then Tenant, on notice from Landlord indicating this requirement,
shall pay a sum of money toward its liability under this Article to Landlord on the same period basis in accordance with the Lender's requirements. Landlord shall impound the Real Property Tax
payments received from Tenant in accordance with the requirements of the Lender. If any assessments are levied against the Property, Landlord may elect to either pay the assessment in full or allow
the assessment to go to bond. If Landlord pays the assessment in full, Tenant shall pay to Landlord each time payment of Real Property Taxes is made a sum equal to that which would have been payable
(as both principal and interest) had Landlord allowed the assessment to go to bond. 

        8.3    Taxes on Tenant's Property:    Tenant shall pay before delinquency any and all taxes, assessments, license fees
and public charges levied, assessed, or imposed against Tenant, Tenant's estate in this Lease or the property of Tenant situated within the Leased Premises which become due during the Lease Term. 

 
 

ARTICLE 9    
    
    INSURANCE    
  

        9.1    Tenant's Insurance:    Tenant shall maintain in full force and effect during the Lease Term the following
insurance: 

        A.    Tenant
shall maintain a policy or policies of comprehensive general liability insurance, including property damage, against liability for personal injury, bodily injury,
death and damage to property occurring in or about, or resulting from, an occurrence in or about the Leased Premises with combined single limit coverage of not less than the amount of Tenant's Minimum
Liability Insurance coverage set forth in Paragraph 1.10. Such comprehensive general liability insurance shall contain a "contractual liability" endorsement insuring Tenant's performance of
Tenant's obligation to indemnify Landlord contained in Paragraph 10.2. If Landlord's Lender or Landlord's insurance advisor or counsel reasonably determines at any time that the amount of such
coverage is not adequate, Tenant shall increase such coverage to such amount as Landlord's Lender, insurance advisor or counsel reasonably deems adequate, not to exceed the level of coverage then
commonly carried by comparable businesses similarly situated. 

        B.    Tenant
shall maintain a policy or policies of fire and property damage insurance in "all risk" form with a sprinkler leakage endorsement (if the Building contains fire
sprinklers) insuring the personal property inventory, Trade Fixtures and Leasehold Improvements within the Leased Premises for the full replacement cost thereof. The proceeds from any of such policies
shall be used for the repair or replacement of such items so insured. 

        C.    If
Tenant undertakes or authorizes any construction, alteration, improvements or the like in the Leased Premises, then Tenant shall maintain contingent liability and
broad form builder's risk insurance with coverage in an amount satisfactory to Landlord. 

        D.    Tenant
shall maintain a policy or policies of worker's compensation insurance and any other employee benefit insurance sufficient to comply with all Laws. 

        E.    Landlord
and such others it designates shall be named as additional insureds on the policies of insurance described in subparagraphs A, B and C above. All insurance
required by this Paragraph 9.1 (i) shall be primary insurance which provides that the insurer shall be liable for the full amount of the loss up to and including the total amount of
liability set forth in the declarations without the right of contribution from any insurance coverage of Landlord, (ii) shall be in a form satisfactory to Landlord, (iii) shall be
carried with companies reasonably acceptable to 

12

 

Landlord, and (iv) shall not have a "deductible" in excess of Two Thousand Five Hundred Dollars ($2,500.00) per occurrence. Copies of such policy or policies, or duly executed certificates for
them, together with satisfactory evidence of the payment of the premium thereon, shall be delivered to Landlord prior to the time Tenant enters into possession of the Leased Premises and upon renewal
of such policies, but not less than thirty (30) days prior to the expiration of the term of such coverage. 

        9.2    Landlord's Insurance:    During the Lease Term, Landlord shall have the following obligations and options
regarding insurance: 

        A.    Landlord
shall maintain, as the minimum coverage required of it by this Lease, a policy or policies of fire and property damage insurance in so-called "fire
and extended coverage" form insuring Landlord (and such others as Landlord may designate) against physical damage to the Building with coverage of not less than ninety percent (90%) of the full
replacement cost thereof and against loss of Base Monthly Rent for a period of not less than six (6) months. Landlord may so insure the Building separately, or may insure the Building with
other buildings and improvements which Landlord elects to insure together under the same policy or policies. The foregoing notwithstanding, such fire and property damage insurance, at Landlord's
election (i) may be written in so-called "all-risk" form to include such perils as are commonly covered by such form of coverage, (ii) may provide coverage for
physical damage to the improvements so insured up to the then full replacement cost thereof, (iii) may be endorsed to cover loss caused by such additional perils against which Landlord may
elect to insure, including earthquake, flood, or other special perils not covered by "all risk" insurance, a "deductible" in an amount that is selected by Landlord. Landlord is not obligated to cause
such insurance to cover any Trade Fixtures, Leasehold improvements, or any inventory or other personal property of Tenant. 

        B.    Landlord
may maintain a policy or policies of comprehensive general liability insurance insuring Landlord (and such others as are designated by Landlord) against
liability for personal injury, bodily injury, death, and damage to property occurring or resulting from an occurrence, in, on or about the Property, with combined single limit coverage of not less
than Three Million Dollars ($3,000,000), or such greater coverage as Landlord may from time to time determine is reasonably necessary for its protection. 

        9.3    Tenant's Obligation to Reimburse:    The cost of the insurance which Landlord is either obligated or elects to
carry pursuant to Paragraph 9.2 and any deductible amount not exceeding Two Thousand Five Hundred Dollars ($2,500.00) per occurrence paid by Landlord and excluded from the coverage of such
insurance shall be Common Operating Expenses and Tenant shall pay its share thereof as provided in Paragraph 6.3. However, if Landlord's insurance rates for the Building are increased at any
time during the Lease Term as a result of the nature of Tenant's use of the Leased Premises and Landlord does not elect to terminate the Lease, Tenant shall reimburse Landlord for the full amount of
such increase immediately upon receipt of a bill from Landlord therefor. 

        9.4    Releases and Waiver of Subrogation:    The parties herein release each other, and their respective agents and
employees from any liability for injury to any person or damage to property that is caused by or results from any risk insured against under any valid and collectible insurance policy carried by
either of the parties which contains a waiver of subrogation by the insurer and is in force at the time of such injury or damage, provided, however, that any such person or entity shall not be
released from such liability to the extent any damages resulting from such injury or damage are not covered by the recovery obtained by the insured from such insurance if the insurance in question
permits such a partial release in connection with obtaining a waiver of subrogation from the insurer. This release shall be in effect only so long as the applicable insurance policy contains a clause
to the effect that this release shall not affect the right of the insured to recover under such policy. Each party shall use its best efforts to cause each insurance policy obtained by it to provide
that the insurer waives 

13

 

all right of recovery by way of subrogation against the other party and its agents and employees in connection with any injury or damage covered by such policy. If, however, any insurance policy
cannot be obtained with such a waiver of subrogation, then the party obtaining such insurance shall notify the other party of that fact and thereupon shall be relieved of the obligation to obtain such
a waiver of subrogation rights from the insurer with respect to the particular insurance involved. 

 
 

ARTICLE 10    
    
    LIMITATION ON LANDLORD'S LIABILITY AND INDEMNITY    
  

        10.1    Limitation on Landlord Liability:    Landlord shall not be liable to Tenant nor shall Tenant be entitled to
any abatement of Rent, for any injury to Tenant, its agents, employees, contractors, or invitees, damage to Tenant's property, or loss to Tenant's business resulting from any cause, including without
limitation (i) failure or interruption of any HVAC or other utility system or service, (ii) governmental regulation, including any rationing or other control of utility services or the
use of the Leased Premises or the Common Area, (iii) penetration of water into or onto any portion of the Leased Premises or the Common Area through roof leaks or otherwise, or
(iv) vandalism or forcible entry by unauthorized persons, provided, however, that, except as provided in Paragraph 9.4, Landlord shall not be released from liability for loss or damage
proximately caused by its willful misconduct or negligence of which it has knowledge and a reasonable time to correct. 

        10.2    Indemnification of Landlord:    Tenant shall hold Landlord harmless, indemnify and defend Landlord and its
employees and agents, with competent counsel reasonably satisfactory to Landlord, from all liability, penalties, losses, damages, costs, expenses, causes of action, claims and/or judgments arising by
reason of any death, bodily injury, personal injury or property damage (i) resulting from any cause or causes whatsoever (other than the willful misconduct of Landlord or its negligence of
which it has knowledge and a reasonable time to correct) occurring in or about or resulting from an occurrence in or about the Leased Premises during the Lease Term or while Tenant or its contractors
are occupying the Leased Premises, or (ii) resulting from the negligence or willful misconduct of Tenant, its agents, employees and contractors, wherever the same may occur. The provisions of
this Paragraph shall survive the expiration or sooner termination of this Lease with respect to any claims or liability occurring prior to such expiration or sooner termination. 

 
 

ARTICLE 11    
    
    DAMAGE TO LEASED PREMISES    
  

        11.1    Landlord's Duty to Restore:    If the Leased Premises are damaged by any peril after the Effective Date of
this Lease, Landlord shall restore the Leased Premises unless the Lease is terminated by Landlord pursuant to Paragraph 11.2 or by Tenant pursuant to Paragraph 11.3. All insurance
proceeds available from the fire and property damage insurance carried by Landlord pursuant to Paragraph 9.2 shall be paid to and become the property of Landlord. If this Lease is terminated
pursuant to either Paragraph 11.2 or 11.3, then all insurance proceeds available from insurance carried by Tenant which covers loss to property that is Landlord's property or would become
Landlord's property on the termination of this Lease shall be paid to and become the property of Landlord. If this Lease is not so terminated, then upon receipt of the insurance proceeds (if the loss
is covered by insurance) and the issuance of all necessary governmental permits, Landlord shall commence and diligently prosecute to completion the restoration of the Leased Premises to the extent
then allowed by Law, to substantially the same condition in which the Leased Premises were immediately prior to such damage. Landlord's obligation to restore shall be limited to the Leased Premises
and interior improvements constructed by Landlord as they existed as of the Commencement Date, excluding any Leasehold Improvements, Trade Fixtures and/or personal property constructed or installed by
Tenant in 

14

 

the Leased Premises. Tenant shall forthwith replace or fully repair all Leasehold Improvements and Trade Fixtures installed by Tenant and existing at the time of such damage or destruction. 

        11.2    Landlord's Right to Terminate:    Landlord shall have the option to terminate this Lease in the event any of
the following occurs, which option may be exercised only by delivery to Tenant of a written notice of election to terminate within thirty (30) days after the date of such damage. 

        A.    The
Leased Premises or Building is damaged by any peril either (i) covered by the type of insurance Landlord is required to carry pursuant to Paragraph 9.2
or (ii) covered by valid and collectible insurance actually carried by Landlord and in force at the time of such damage or destruction, to such an extent that the estimated restoration cost
exceeds thirty-three and one-third percent (331/3%) of the then actual replacement cost thereof. 

        B.    The
Leased Premises or the Building is damaged by any peril both (i) not covered by the type of insurance Landlord is required to carry pursuant to
Paragraph 9.2 and (ii) not covered by valid and collectible insurance actually carried by Landlord and in force at the time of such damage or destruction, to such an extent that the
estimated restoration cost exceeds five percent (5%) of the then actual replacement cost thereof. 

        C.    The
Leased Premises are damaged by any peril during the last twelve (12) months of the Lease Term to such an extent that the estimated cost to restore equals or
exceeds an amount equal to six (6) times the Base Monthly Rent then due, provided, however, that Landlord may not terminate this Lease pursuant to this subparagraph C if Tenant at the time of
such damage has an express written option to further extend the term of this Lease and Tenant exercises such option to so further extend the Lease Term within fifteen (15) days following the
date of such damage, or 

        D.    The
Building is damaged by any peril and, because of the Laws then in force, (i) may not be restored at reasonable cost to substantially the same condition in
which it was prior to such damage, or (ii) may not be used for the same use being made thereof before such damage, whether or not restored as required by this Article. 

        11.3    Tenant's Right to Terminate:    If the Leased Premises are damaged by any peril and Landlord does not elect to
terminate this Lease or is not entitled to terminate this Lease pursuant to Paragraph 11.2, then as soon as reasonably practicable, Landlord shall furnish Tenant with the written opinion of
Landlord's architect or construction consultant as to when the restoration work required of Landlord may be completed. Tenant shall have the option to terminate this Lease in the event any of the
following occurs, which option may be exercised only by delivery to Landlord of a written notice of election to terminate within seven (7) days after Tenant receives from Landlord the estimate
of the time needed to complete such restoration. 

        A.    The
Leased Premises are damaged by any peril and in the reasonable opinion of Landlord's architect or construction consultant, the restoration of the Leased Premises
cannot be substantially completed within two-hundred seventy (270) days after the date of such damage. 

        B.    The
Leased Premises are damaged by any peril within twelve (12) months of the last day of the Lease Term, and, in the reasonable opinion of Landlord's architect or
construction consultant, the restoration of the Leased Premises cannot be substantially completed within sixty (60) days after the date of such damage. 

        11.4    Abatement of Rent:    In the event of damage to the Leased Premises which does not result in the termination
of this Lease, the Base Monthly Rent shall be temporarily abated during the period of restoration in proportion to the degree in which Tenant's use of the Leased Premises is impaired by such damage,
Tenant shall not be entitled to any compensation from Landlord for loss of Tenant's property or loss in Tenant's business caused by such damage or restoration. Tenant hereby waives the 

15

 

provisions of Section 1932, Subdivision 2, and Section 1933, Subdivision 4 of the California Civil Code, and the provisions of any similar law hereafter enacted. 

 
 

ARTICLE 12    
    
    CONDEMNATION    
  

        12.1    Taking of Leased Premises:    If all or any part of the Building is taken by means of (i) any taking by
the exercise of the power of eminent domain, whether by legal proceedings or otherwise, (ii) a voluntary sale or transfer by Landlord to any condemnor under threat of condemnation or while
legal proceedings for condemnation are pending or (iii) any taking by inverse condemnation (a "Condemnation"), the Landlord shall have the option to terminate this Lease. If all or any part of
the Leased Premises are taken by Condemnation and the Leased Premises cannot be reconstructed within a reasonable period of time and thereby made reasonably suitable for Tenant's continued occupancy
for the Permitted Use, then Tenant shall have the option to terminate this Lease. Any such option to terminate by either Landlord or Tenant must be exercised within thirty (30) days after
Landlord gives Tenant written notice of the pending condemnation to be effective as of the date that possession of the Leased Premises is taken by the condemnor. 

        12.2    Taking of Common Area:    Tenant shall have the option to terminate this Lease if there is a taking of more
than fifty percent (50%) of the Common Area and as a result of such taking, Landlord cannot provide Tenant with the nonexclusive right to use parking spaces within a reasonable walking distance of the
Leased Premises equal in number to at least eighty percent (80%) of the number of spaces allocated to Tenant's use by Paragraph 2.1, whether by rearrangement of the remaining parking areas in
the Common Area (including restripping for compact cars where permitted by law) or by alternative parking facilities on other land of Landlord. Tenant must exercise such option within thirty
(30) days after Landlord gives Tenant written notice of the pending condemnation to be effective on the date that possession of that portion of the Common Area that is condemned is taken by the
condemnor. If Tenant does not exercise such option to terminate, then Landlord shall have no obligation to provide additional parking area for Tenant and Tenant shall not be entitled to any abatement
of rent as a result of any such reduction in the Common Area. 

        12.3    Restoration Following the Taking:    If any part of the Leased Premises or the Common Area is taken by
Condemnation and this Lease is not terminated, then Landlord shall make all repairs and alterations that are reasonably necessary to make that which is not taken a complete architectural unit, but
Landlord shall not be obligated to (i) spend more than the amount of any condemnation award recovered by Landlord for such restoration, or (ii) exceed the scope of the work done by
Landlord or its predecessor in originally constructing the Property. 

        12.4    Abatement of Rent:    Except in the case of a temporary taking, if any portion of the Leased Premises is taken
by Condemnation and this Lease is not terminated, then as of the date possession is taken, and continuing until possession is restored by the condemnor, the Base Monthly Rent shall be reduced in the
same proportion that the floor area of that part of the Leased Premises so taken (less any
addition thereto by reason of any reconstruction) bears to the original floor area of the Leased Premises. Rent shall not be abated on account of a temporary taking. 

        12.5    Temporary Taking:    If any portion of the Leased Premises is temporarily taken by Condemnation for a period
which does not extend beyond the natural expiration of the Lease Term, then this Lease shall continue in full force and effect. If any portion of the Leased Premises is temporarily taken by
Condemnation for a period which extends beyond the natural expiration of the Lease Term and such taking materially affects Tenant's ability to use the Leased Premises for the Permitted Use, then
Landlord and Tenant shall each independently have the option to terminate this Lease, effective on the date possession is taken by the condemnor. 

16

 

        12.6    Division of Condemnation Award:    Any award made as a result of any Condemnation of the Leased Premises or
the Common Area shall belong to and be paid to Landlord, and Tenant hereby assigns to Landlord all of its right, title and interest in any such award, provided, however, that Tenant shall be entitled
to receive any Condemnation award that is made directly to Tenant (i) for the taking of personal property or Trade Fixtures belonging to Tenant, (ii) for the interruption of Tenant's
business or for its moving costs, (iii) for loss of Tenant's goodwill or (iv) any temporary taking where this Lease is not terminated as a result of such taking. The rights of Landlord
and Tenant regarding any Condemnation shall be determined as provided in this Article, and each party hereby waives the provisions of Section 1265.130 of the California Code of Civil Procedure
allowing either party to petition the Superior Court to terminate this Lease in the event of a partial taking of the Leased Premises. 

 
 

ARTICLE 13    
    
    DEFAULT AND REMEDIES    
  

        13.1    Events of Tenant's Default:    Tenant shall be in default of its obligations under this Lease if any of the
following events occur: 

        A.    Tenant
fails to pay any Base Monthly Rent or Additional Rent when due and such failure is not cured within three (3) days after delivery of written notice from
Landlord specifying such failure to pay Rent; or 

        B.    Tenant
fails to perform or breaches any term, covenant, or condition of this Lease except those requiring the payment of Base Monthly Rent or Additional Rent and Tenant
fails to cure such default within ten (10) days after delivery of written notice from Landlord specifying the nature of such default; or 

        C.    Tenant
makes an assignment, sublease or other transfer in violation of Paragraph 14.1; or 

        D.    Tenant
makes a general assignment of its assets for the benefit of its creditors; or 

        E.    There
occurs an attachment of execution upon, the appointment of a custodian or receiver with respect to, or other judicial seizure of (i) substantially all of
Tenant's assets, (ii) any property of Tenant essential to the conduct of Tenant's business in the Leased Premises, or (iii) the leasehold created by this Lease; and Tenant fails to
obtain a return or release of such property within thirty (30) days thereafter or prior to sale or other disposition, whichever is earlier; or 

        F.    Tenant
vacates the Leased Premises for more than thirty (30) days during any ninety (90) day period during the Lease Term, or Tenant abandons the Leased
Premises; or 

        G.    A
court makes or enters any decree or order with respect to Tenant or Tenant submits to or seeks a decree or order (or a petition or pleading is filed in connection
therewith) which (i) grants or constitutes (or seeks) an order for relief, appointment of a trustee, or confirmation of a reorganization plan under the bankruptcy laws of the United States,
(ii) approves as properly filed (or seeks such approval of) a petition seeking liquidation or reorganization under said bankruptcy laws or any other debtor's relief laws or statutes of the
United States or any state thereof, (iii) otherwise directs (or seeks) the winding up or liquidation of Tenant; provided, however that if any such petition, decree or order is not voluntarily
filed or made by Tenant, that Tenant shall not be in default until such petition, decree or order remains undischarged for a period of thirty (30) days. 

        13.2    Landlord's Remedies:    In the event of any default by Tenant, Landlord shall have the following remedies, in
addition to all other rights and remedies provided by any Law or otherwise provided in this Lease, to which Landlord may resort cumulatively, or in the alternative: 

17

 

        A.    Landlord
may keep this Lease in effect and enforce by an action at law or in equity all of its rights and remedies under the Lease, including (i) the right to
recover the Rent and other sums as they become due by appropriate legal action, (ii) the remedies of injunctive relief and special performance to
compel Tenant to perform its obligations under this Lease, and (iii) the right to cause a receiver to be appointed to administer the Leased Premises. 

        B.    Landlord
may make any payment or perform any obligation of Tenant. Tenant shall reimburse Landlord, on demand, all sums paid by Landlord and all necessary costs of such
performance by Landlord, with interest at the Agreed Interest Rate from the date the sum is paid by Landlord until Landlord is reimbursed by Tenant. Landlord shall have the same rights and remedies in
the event of nonpayment of such amounts by Tenant as in the case of failure by Tenant in the payment of Rent. 

        C.    Landlord
may, at Landlord's election, enter the Leased Premises and re-lease them, or any part of them to third parties. Tenant shall be liable immediately to
Landlord for all costs Landlord incurs in re-leasing the Leased Premises, including broker's commissions, expenses of altering and preparing the Leased Premises required by the
re-leasing and like cost. Reletting can be for a period shorter or longer than the remaining term of this Lease. Tenant shall pay to Landlord the Rent and other sums due under this Lease
on the date the Rent is due, less the Rent and other sums Landlord received from any re-leasing. No act by Landlord allowed by this subparagraph shall terminate this Lease unless Landlord
notifies Tenant in writing that Landlord elects to terminate this Lease. Notwithstanding any re-leasing without termination, Landlord may later elect to terminate this Lease because of the
default by Tenant. 

        D.    In
the event Tenant breaches this Lease and abandons the Leased Premises, this Lease shall not terminate unless Landlord gives Tenant written notice of its election to so
terminate this Lease, which Landlord may do at the time of such breach and abandonment or at any time thereafter and which shall cause this Lease to terminate, regardless of whether Landlord has
theretofore exercised any other of its remedies. No act by or on behalf of Landlord intended to mitigate the effect of such breach shall constitute a termination of Tenant's right to possession unless
Landlord gives Tenant written notice of termination. Should Landlord not terminate this Lease by giving Tenant written notice, Landlord may enforce all its rights and remedies under this Lease
including the right to recover the Rent as it becomes due under the Lease as provided in California Civil Code Section 1951.4, as in effect on the Effective Date of this Lease. 

        E.    Landlord
may, at Landlord's election, terminate this Lease by giving Tenant written notice of termination, in which event this Lease shall terminate on the date set forth
for termination in such notice. No act by or on behalf of Landlord intended to mitigate the adverse effect of Tenant's default shall constitute a termination of the Lease or Tenant's right to
possession unless Landlord gives Tenant written notice of termination. Any such termination shall not relieve Tenant from the payment of any sums then due Landlord or from any claims for damages
resulting from Tenant's default. Following termination of the Lease, and without prejudice to any other remedies Landlord may have, Landlord may then or any time thereafter (i) peaceably
reenter the Leased Premises upon voluntary surrender by Tenant or expel or remove Tenant therefrom together with any other persons occupying it, using such legal proceedings as are then available,
(ii) repossess and use the Leased Premises or re-lease the Leased Premises or any part thereof for such term, at such rent, and upon such other terms and conditions as Landlord in
its sole discretion may determine, (iii) remove all property of Tenant therefrom at Tenant's expense in accordance with Paragraph 15.1. 

        F.    In
the event Landlord terminates this Lease, Landlord shall be entitled, at Landlord's election, to damages in an amount as set forth in the California Civil Code
Section 1951.2 as in effect on the Effective Date of this Lease. For purposes of computing damages pursuant to said 

18

 

Section 1951.2, (i) the Agreed Interest Rate shall be used where permitted, and (ii) Rent due under this Lease shall include the Base Monthly Rent and the Additional Rent,
determined on a monthly basis where necessary to compute such damages. Such damages shall include without limitation: 

        (1)  The
worth at the time of the award of the amount by which the unpaid Rent for the balance of the term after the time of award exceeds the amount of such rental loss that
Tenant proves could be reasonably avoided, computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%), and 

        (2)  Any
other amount necessary to compensate Landlord for all detriment proximately caused by Tenant's failure to perform Tenant's obligations under this Lease, or which in
the ordinary course of things would be likely to result therefrom, including, without limitation, the following: (i) expenses for cleaning, repairing or restoring the Leased Premises;
(ii) expenses for altering, remodeling or otherwise improving the Leased Premises for the purpose of re-leasing including installation of Leasehold Improvements (whether such
installation be funded by a reduction of Rent, direct payment or allowance to a new tenant, or otherwise); (iii) broker's fees, advertising costs and other expenses of re-leasing
the Leased Premises; (iv) costs of carrying the Leased Premises, such as taxes, insurance premiums, utilities and security precautions; (v) expenses in retaking possession of the Leased
Premises and (vi) attorneys' fees and court costs incurred by Landlord in retaking possession of the Leased Premises and in re-leasing the Leased Premises or otherwise incurred as a
result of Tenant's default. 

        G.    Nothing
in this Paragraph shall limit Landlord's right to indemnification from Tenant as provided in Paragraph 10.2. 

        13.3    Landlord's Defaults and Tenant's Remedies:    In the event Landlord fails to perform any of its obligations
under this Lease and fails to cure such default within thirty (30) days after written notice from Tenant specifying the nature of such default where such default could reasonably be cured
within said thirty (30) day period, or fails to commence such cure within said thirty (30) day period and thereafter continuously with due diligence prosecutes such cure to completion
where such default could not be reasonably be cured within said thirty (30) day period, then Tenant shall have the following remedies only: 

        A.    Tenant
may proceed in equity or in law to compel Landlord to perform its obligations and/or to recover damages proximately caused by such failure to perform (except to
the extent Tenant has waived its right to damages resulting from injury to person or damage to property as provided herein). 

        B.    Tenant
may cure any default of Landlord at Landlord's cost. If Tenant at any time by reason of Landlord's default reasonably pays any sum or does any act that requires
the payment of any sum, the sum paid by Tenant shall be immediately due from Landlord to Tenant at the time the sum is paid and shall bear interest at the Agreed Interest Rate from the date the sum is
paid by Tenant until Tenant is reimbursed by Landlord. 

        C.    Tenant
waives the provisions of Sections 1932(l), 1941 and 1942 of the California Civil Code and/or any similar or successor Law regarding Tenant's right to terminate
this Lease or to make repairs and deduct the expenses of such repairs from the rent due under the Lease, Tenant hereby waives any right of redemption or relief from forfeiture under the laws of the
State of California, or under any present or future laws, including the provisions of Sections 1174 and 1179 of the California Code of Civil Procedure. 

19

 

        D.    Waiver: One party's consent to or approval of any act by the other party requiring the first party's, consent or approval
shall not be deemed to waive or render unnecessary the first party's consent or approval of any subsequent similar act by the other party. The receipt or acceptance by Landlord of any Rent with or
without knowledge of the breach of any provision hereof shall not be deemed a waiver of any such breach unless such waiver is in writing and signed by Landlord. No delay or omission in the exercise of
any right or remedy accruing to either party upon any breach by the other party under this Lease shall impair such right or remedy or be construed as a waiver of any such breach theretofor or
hereafter occurring. The waiver by either party of any breach of any provision of the Lease shall not be deemed to be a waiver of any subsequent breach of the same or of any other provisions herein
contained. 

 
 

ARTICLE 14    
    
    ASSIGNMENT AND SUBLETTING    
  

        14.1    By Tenant:    The following provisions shall apply to any assignment, subletting or other transfer by Tenant
or any subtenant or assignee or other successor in interest of the original Tenant (collectively referred to in this Paragraph as "Tenant"): 

        A.    Tenant
shall not do any of the following (collectively referred to herein as a "Transfer"), whether voluntarily, involuntarily, or by operation of law, without the prior
written consent of Landlord, which
consent shall not be unreasonably withheld: (i) assign or otherwise transfer its interest in this Lease or in the Leased Premises; (ii) sublet all or any part of the Leased Premises or
allow it to be sublet, occupied, or used by any person or entity other than Tenant; (iii) transfer any right appurtenant to this Lease or the Leased Premises; (iv) mortgage or encumber
the Lease (or otherwise use the Lease as a security device) in any manner; or (v) terminate or materially amend or modify an assignment, sublease, or other Transfer that has been previously
approved by Landlord. Tenant shall pay Landlord a processing fee of Two Hundred Dollars ($200), whether or not Landlord's consent is granted. Any Transfer so approved by Landlord shall not be
effective until Tenant has paid all such costs and attorneys' fees to Landlord and delivered to Landlord an executed counterpart of the document evidencing the Transfer which (i) is in form
approved by Landlord, (ii) contains the same terms and conditions as stated in Tenant's notice given to Landlord pursuant to subparagraph B below, and (iii) contains the agreement of the
proposed transferee ("Transferee") to assume all obligations of Tenant related to the Transfer arising after the effective date of such Transfer and to remain jointly and severally liable therefor
with Tenant. Any attempted Transfer without Landlord's consent shall constitute a default by Tenant and shall be voidable at Landlord's option. Landlord consent to any one Transfer shall not
constitute a waiver of the provisions of this Paragraph 14.1 as to any subsequent Transfer nor a consent to any subsequent Transfer. No Transfer, even with the consent of Landlord, shall
relieve Tenant of its personal and primary obligation to pay the Rent and to perform all of the other obligations to be performed by Tenant hereunder. The acceptance of Rent by Landlord from any
person shall not be deemed to be a waiver by Landlord of any provision of this Lease nor to be a consent to any Transfer. 

        B.    Tenant
shall give Landlord at least thirty (30) days prior written notice of any desired Transfer and of the proposed terms of such Transfer including but not
limited to (i) the name and legal composition of the proposed Transferee, (ii) an audited financial statement of the proposed Transferee prepared in accordance with generally accepted
accounting principles for a period ending not more than one year prior to the proposed effective date of the Transfer; (iii) the nature of the proposed Transferee's business to be carried on in
the Leased Premises; (iv) all consideration to be given on account of the Transfer; (v) a current financial statement of Tenant; and (vi) such other information as may be
requested by Landlord. Tenant's notice shall not be deemed to have been served or given until such time as Tenant has provided Landlord with all 

20

 

information reasonably requested by Landlord pursuant to this subparagraph B. Tenant shall immediately notify Landlord of any modification to the proposed terms of such Transfer. 

        C.    In
the event that Tenant seeks to make any Transfer, Landlord shall have the right to withhold its consent to such Transfer, as permitted pursuant to subparagraph A
above, or to exercise any of the rights set forth in this subparagraph C, by giving Tenant written notice of its election within thirty (30) days after Tenant's notice of intent to Transfer has
been deemed given to Landlord. Without otherwise limiting the criteria upon which Landlord may withhold its consent to any proposed Transfer, if Landlord withholds its consent where the proposed
Transferee's net worth (according to generally accepted accounting principles) is less than the greater of (i) the net worth of Tenant immediately prior to the Transfer, or (ii) the net
worth of Tenant as of the Effective Date, such withholding of consent shall be presumptively reasonable. The following rights are in addition to Landlord's right to withhold its consent to any
Transfer, and may be exercised by Landlord in its sole discretion without limiting Landlord in the exercise of any other right or remedy which Landlord may have. 

        (1)  Landlord
may terminate this Lease or, in the case of a sublease of less than all of the Leased Premises, at Landlord's election, terminate this Lease only as to that
part of the Leased Premises proposed to be so sublet, either (i) on the condition that the proposed Transferee immediately enter into a direct lease of the Leased Premises with Landlord (or, in
the case of a partial sublease, a lease of the portion proposed to be so sublet) on the same terms and conditions contained in Tenant's notice, or (ii) so that Landlord is thereafter free to
lease the Leased Premises (or, in the case of a partial sublease, the portion proposed to be so sublet) to whomever it pleases on whatever terms are acceptable to Landlord. In the event Landlord
elects to so terminate this Lease, then (i) if such termination is conditioned upon the execution of a lease between Landlord and proposed Transferee, Tenant's obligations under this Lease
shall not be terminated until such Transferee executes a new lease with Landlord, enters into possession, and commences the payment of Rent, and (ii) if Landlord elects simply to terminate this
Lease (or, in the case of a partial sublease, terminate this Lease as to the portion to be so sublet), the Lease shall so terminate in its entirety (or as to the space to be so sublet) fifteen
(15) days after Landlord has notified Tenant in writing of such election. Upon such termination, Tenant shall be released from any further obligation under this Lease if it is terminated in its
entirety, or shall be released from any further obligation under the Lease with respect to the space proposed to be sublet in the case of a partial sublease and partial termination. In the case of a
partial termination of the Lease, the Base Monthly Rent and Tenant's Allocated Share shall be reduced to an amount which bears the same relationship to the original amount thereof as the area of that
part of the Leased Premises which remains subject to the Lease bears to the original area of the Leased Premises. Landlord and Tenant shall execute a cancellation and release with respect to the Lease
to effect such termination. 

        (2)  Landlord
may elect to permit Tenant to so assign the Lease or sublease such part of the Lease Premises, in which event Tenant may do so, but without being released of
its liability for the performance of all of its obligations under the Lease. If Tenant assigns its interest in this Lease in accordance with this subparagraph (2), then Tenant shall pay to Landlord
fifty percent (50%) of all consideration (whether monetary or non-monetary) received by Tenant over and above assignee's agreement to assume the obligations of Tenant under this Lease
provided that the cash equivalent of non-monetary consideration shall be paid. If Tenant sublets all or part of the Leased Premises, then Tenant shall pay to Landlord fifty percent (50%)
of the positive difference, if any, between (i) all rent and other consideration (whether monetary or non-monetary) paid by the subtenant to Tenant, less (ii) all rent paid
by Tenant to Landlord pursuant to this Lease which is allocable to the area 

21

 

so sublet. Such amount shall be paid to Landlord on the same basis, whether periodic or in lump sum, that such rent and other consideration is paid to Tenant by its subtenant. Notwithstanding the
foregoing, the percentage of such consideration that Tenant is obligated to pay shall be increased from fifty percent (50%) to one hundred percent (100%) in the event the terms of any loan made by a
Lender provide that the interest due pursuant to such loan increases as a result of the receipt by Tenant of consideration from any Transferee that is not paid to Landlord. Tenant's obligations under
this subparagraph shall survive any assignment or sublease, and Tenant's failure to perform its obligations under this subparagraph shall be a default under this Lease. At the time Tenant makes any
payment to Landlord required by this subparagraph, Tenant shall deliver an itemized statement of the method by which the amount to which Landlord is entitled was calculated, certified by Tenant as
true and correct. Landlord shall have the right to inspect Tenant's books and records relating to the payments due pursuant to this subparagraph. Upon request therefore, Tenant shall deliver to
Landlord copies of all bills, invoices, or other documents upon which its calculations are based. Landlord may condition its approval of any Transfer upon obtaining a certification from both Tenant
and the proposed Transferee of all amounts that are to be paid to Tenant in connection with such Transfer. As
used herein, the term "consideration" shall mean any consideration of any kind received, or to be received, by Tenant as a result of the Transfer, if such sums are related to Tenant's interest in this
Lease or in the Leased Premises, including payments (in excess of the book value thereof) for Tenant's assets, fixtures, leasehold improvements, inventory, accounts, goodwill, equipment, furniture,
general intangibles, and any capital stock or other equity ownership interest in Tenant. 

        D.    If
Tenant is a corporation, any dissolution, merger, consolidation, or other reorganization of Tenant, or the sale or transfer in the aggregate over the Lease Term of a
controlling percentage of the capital stock of Tenant, shall be deemed a voluntary assignment of Tenant's interest in this Lease, provided, however, that the foregoing shall not apply to corporations
the capital stock of which is publicly traded. The phrase "controlling percentage" means the ownership of and the right to vote stock possessing more than fifty percent (50%) of the total combined
voting power of all classes of Tenant's capital stock issued, outstanding and entitled to vote for the election of directors. If Tenant is a partnership, any withdrawal or substitution (whether
voluntary, involuntary, or by operation of law and whether occurring at one time or over a period of time) of any partner(s) owning twenty-five percent (25%) or more (cumulatively) of any
interest in the capital or profits of the partnership, or the dissolution of the partnership, shall be deemed a voluntary assignment of Tenant's interest in this Lease. 

        E.    Tenant
expressly agrees that the provisions of this Paragraph 14.1 are not unreasonable standards or conditions for purposes of Section 1951.4(b)(2) of the
California Civil Code, as amended from time to time. 

        F.    Tenant
irrevocably assigns to Landlord, as security for Tenant's obligations under this Lease, all Rent or other consideration not otherwise payable to Landlord by reason
of any Transfer. Landlord, as assignee of Tenant, or a receiver for Tenant appointed on Landlord's application, may collect such Rent or other consideration and apply it toward Tenant's obligation
under this Lease; provided, however, that until occurrence of any default by Tenant, Tenant shall have the right to collect such Rent or other consideration. 

        14.2    By Landlord:    Landlord and its successors in interest shall have the right to transfer their interest in the
Leased Premises and the Property at any time and to any person or entity. In the event of any such transfer, the Landlord originally named herein (and in the case of any subsequent transfer, the
transferor), from the date of such transfer, (i) shall be automatically relieved, without any further act by any other person or entity, of all liability for the performance of the obligations
of the Landlord hereunder which may accrue after the date of such transfer, and (ii) shall be relieved of all liability for 

22

 

the performance of the obligations of the Landlord hereunder which have accrued before the date of transfer only if its transferee agrees to assume and be bound by the terms of this Lease and to
perform all obligations of the Landlord hereunder As used herein, the term "Landlord" shall mean the Landlord originally named herein, but following any transfer of its interest in the Leased Premises
and the Property, the term "Landlord" shall thereafter mean the transferee of such interest. 

 
 

ARTICLE 15    
    
    TERMINATION    
  

        15.1    Surrender of the Leased Premises:    Immediately prior to the expiration or upon the earlier termination of
this Lease, Tenant shall remove all Tenant's Trade Fixtures and other personal property, repair all damage caused by the installation and removal of such property, and vacate and surrender the Leased
Premises to Landlord in the same condition as existed at the Commencement Date, reasonable wear and tear excepted, with (i) all interior walls cleaned, (ii) all interior painted surfaces
to be repainted in the original color, (iii) all holes in walls and floor repaired, (iv) all carpets shampooed and cleaned, (v) all HVAC equipment within the Leased Premises in
good operating order and repair, and (vi) all floors cleaned, all to the reasonable satisfaction of Landlord. If Landlord so requests, Tenant shall, prior to the expiration or earlier
termination of this Lease, (i) remove any Leasehold Improvements designated by Landlord, (ii) repair all damage caused by such removal and (iii) restore the Leased Premises to the
condition existing prior to the time such removed Leasehold Improvements were initially installed. Landlord may hire independent contractors to inspect any HVAC system serving the Leased Premises for
the purpose of determining whether they have been properly maintained by Tenant, and Tenant shall pay the cost thereof within ten (10) days after receipt of a statement therefor from Landlord.
If the Leased Premises are not so surrendered at the termination of this Lease, Tenant shall be liable to Landlord for all costs incurred by Landlord in returning the Leased Premises to the required
condition, plus interest on all costs incurred at the Agreed Interest Rate. Tenant shall indemnify Landlord against loss or liability resulting from delay by Tenant in so surrendering the Leased
Premises, including, without limitation, any claims made by any succeeding tenant or losses to Landlord due to lost opportunities to lease to succeeding tenants. Any personal property of Tenant or any
other person left on the Leased Premises after Tenant has abandoned, vacated, or surrendered the Leased Premises shall be deemed to be abandoned and Landlord may dispose of such property in accordance
with the provisions of California Civil Code Sections 1980-1991. 

        15.2    Holding Over:    This Lease shall terminate without further notice at the expiration of the Lease Term. Any
holding over by Tenant after expiration of the Lease Term without Landlord's written consent shall not constitute a renewal or extension of the Lease or give Tenant any rights in or to the Leased
Premises. Any holding over after such expiration with the written consent of Landlord shall be construed to be a tenancy from month to month on the same terms and conditions herein specified insofar
as applicable except that Base Monthly Rent shall be increased to an amount equal to one hundred fifty percent (150%) of the Base Monthly Rent required during the last month of the Lease Term. 

 
 

ARTICLE 16    
    
    GENERAL PROVISIONS    
  

        16.1    Landlord's Right to Enter:    Landlord and its agents may enter the Leased Premises at any reasonable time for
the purpose of (i) inspecting the same, (ii) posting notices of nonresponsibility, (iii) supplying any service to be provided by Landlord to Tenant, (iv) showing the Leased
Premises to prospective purchasers, mortgagees or tenants, (v) making necessary alterations, additions or repairs, (vi) performing Tenant's obligations when Tenant has failed to do so
within ten (10) days after written notice from Landlord, (vii) placing upon the Leased Premises ordinary "for lease" or "for sale" signs, 

23

 

and/or (viii) in case of an emergency. For each of the aforesaid purposes, Landlord may enter the Leased Premises by means of a master key and Landlord shall have the right to use any means
Landlord may deem necessary to enter the Leased Premises in an emergency. Tenant shall permit and facilitate the entry of Landlord, or those designated by it, into the Leased Premises for the purpose
of inspection, repair, window cleaning, the performance of janitorial services, and other proper purposes. Tenant shall not obstruct or restrict access to ducts, janitorial and electrical closets and
other necessary means of access to mechanical, electrical and other facilities by the placement of furniture, carpeting or otherwise. In the event of such obstruction, Tenant will be responsible for
the cost of clearing the obstruction and of providing such access. 

        16.2    Subordination:    The following provisions shall govern the relationship of this Lease to any underlying
lease, mortgage or deed of trust which now or hereafter affects the Property, and any renewal, modification, consolidation, replacement, or extension thereof (a "Security Instrument"). 

        A.    This
Lease is subject and subordinate to all Security Instruments existing as of the Effective Date. However, if any Lender so requires, this Lease shall become prior and
superior to any such Security Instrument. 

        B.    At
Landlord's election, this Lease shall become subject and subordinate to any Security Instrument created after the Effective Date. Notwithstanding such subordination,
Tenant's right to quiet possession of the Premises shall not be disturbed so long as Tenant is not in default and performs all of its obligations under this Lease, unless this Lease is otherwise
terminated pursuant to its terms. 

        C.    Tenant
shall execute any document or instrument required by Landlord or any Lender to make this Lease either prior or subordinate to a Security Instrument which may
include such other matters as the
Lender customarily requires in connection with such agreements, including provisions that the Lender not be liable for (i) the return of the Security Deposit unless the Lender receives it from
Landlord, and (ii) any defaults on the part of Landlord occurring prior to the time the Lender takes possession of the Property in connection with the enforcement of its Security Instrument.
Tenant's failure to execute any such document or instrument within ten (10) days after written demand therefor shall constitute a default by Tenant or, at Landlord's option, Landlord may
execute such documents on behalf of Tenant as Tenant's attorney-in-fact. Tenant does hereby make, constitute and irrevocably appoint Landlord as Tenant's
attorney-in-fact to execute such documents in accordance with this Paragraph. 

        16.3    Tenant's Attornment:    Tenant shall attorn (i) to any purchaser of the Leased Premises at any
foreclosure sale or private sale conducted pursuant to any security instrument encumbering the Property, (ii) to any grantee or transferee designated in any deed given in lieu of foreclosure,
or (iii) to the lessor under any underlying ground lease should such ground lease be terminated. 

        16.4    Mortgagee Protection:    In the event of any default on the part of Landlord, Tenant will give notice by
registered mail to any Lender whose name has been provided to Tenant and shall offer such Lender a reasonable opportunity to cure the default, including time to obtain possession of the Leased
Premises by power of sale or judicial foreclosure or other appropriate legal proceedings, if such should prove necessary to effect a cure. 

24

   
        16.5    Estoppel Certificates and Financial Statements:    Tenant agrees, following any request by Landlord, to
promptly execute and deliver to Landlord an estoppel certificate upon which Landlord and others it designates may rely (i) certifying that this Lease is unmodified and in full force and effect,
or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect, (ii) stating the date to which the Rent and other charges
are paid in advance, if any, (iii) acknowledging that there are not, to Tenant's knowledge, any uncured defaults on the part of Landlord hereunder, or if there are uncured defaults on the part
of Landlord, stating the nature of such uncured defaults and (iv) certifying such other information about this Lease as may be reasonably required by Landlord. Tenant's failure to deliver an
estoppel certificate within ten (10 days after delivery of Landlord's request therefor shall be a conclusive admission by Tenant that, as of the day of the request for such statement,
(i) this Lease is unmodified except as may be represented by Landlord in said request and is in full force and effect, (ii) there are no uncured defaults in Landlord's performance, and
(iii) no Rent has been paid in advance. At any time during the Lease Term, Tenant shall, upon ten (10) days' prior written notice from Landlord, provide Tenant's most recent financial
statement and financial statements covering the twenty-four (24) months prior to the date of such most recent financial statement to any existing Lender or to any potential Lender
or buyer of the Property. Such statement shall be prepared in accordance with generally accepted accounting principles and, if such is the normal practice of Tenant, shall be audited by an independent
certified public accountant. 

        16.6    Force Majeure:    Any prevention or delay due to strikes, lockouts, inclement weather, labor disputes,
inability to obtain labor, materials, fuels or reasonable substitutes therefor, governmental regulations, governmental action or inaction, civil commotion, fire or other acts of God, or other causes
beyond the reasonable control of the party obligated to perform (except financial inability) shall excuse the performance, for a period equal to the period of any said prevention or delay, of any
obligation hereunder except the obligation of Tenant to pay Rent. 

        16.7    Notice:    Any notice required or desired to be given regarding this Lease shall be in writing and may be
personally served (including service by written electronic transmission, with receipt acknowledged), or in lieu of personal service, may be given by mail. If given by mail, such notice shall be deemed
to have been given (i) on the business day after mailing if such notice was deposited in the United States Mail, certified and postage prepaid, addressed to the party to be served at its
address first above set forth and (ii) in all other cases when actually received. Either party may change its address by giving notice of same in accordance with this Paragraph. 

        16.8    Attorneys' Fees:    In the event either party shall bring any action or legal proceeding for an alleged breach
of any provision of this Lease, to recover rent, to terminate this Lease or to otherwise enforce, protect or establish any term or covenant of this Lease or right of either party, the prevailing party
shall be entitled to recover as a part of such action or proceedings, or in a separate action brought for that purpose, reasonable attorneys' fees and court costs as may be fixed by the court. 

        16.9    Corporate Authority:    If Tenant is a corporation (or a partnership), each individual executing this Lease on
behalf of said corporation (or partnership) represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said corporation in accordance with the bylaws of
the corporation (or partnership in accordance with the partnership agreement of the partnership) and that this Lease is binding upon said corporation (or partnership) in accordance with its terms. If
Tenant is a corporation, Tenant shall, within thirty (30) days after execution of this Lease, deliver to Landlord a certified copy of the resolution of the board of directors of the corporation
authorizing or ratifying the execution of this Lease. 

        16.10    Additional Definitions:    Any term that is given a special meaning by any provision in this Lease shall have
such meaning when used in this Lease or any addendum or amendment hereto. As used herein, the following terms shall have the following meanings: 

25

 

        A.    Agreed
Interest Rate: An interest rate of either twelve percent (12%) per annum or the maximum applicable rate permitted by Law, whichever is less. 

        B.    Common
Area: All areas and facilities within the Property that are provided and designated by Landlord from time to time for general use and convenience of the lessees
and occupants of all or any part of the Property, including the parking areas and facilities, access and perimeter roads, pedestrian sidewalks, restrooms, landscaped areas and the like. 

        C.    Effective
Date: The date the last signatory to this Lease whose execution is required to make it binding on the parties hereto shall have executed this Lease. 

        D.    Law:
Any judicial decision, statute, constitution, ordinance, resolution, regulation, rule, administrative order, or other requirement of any government agency or
authority having jurisdiction over the parties to this Lease or the Property or Leased Premises, or one or more of the foregoing, in effect at the Effective Date of this Lease or any time during the
Lease Term, including, without limitation, any regulation, order, or policy of any quasi-official entity or body (e.g., board of fire examiners, public utility or special district) and the Americans
With Disabilities Act. 

        E.    Leasehold
Improvements: All improvements, additions, alterations, and fixtures installed in the Leased Premises by Tenant at its expense which are not Trade Fixtures. 

        F.    Lender:
(i) Any beneficiary, mortgagee, secured party, or other holder of any deed of trust, mortgage or other written security device or agreement affecting the
Property, and (ii) any lessor under any underlying lease under which Landlord holds its interest in the Property. 

        G.    Private
Restrictions: All recorded covenants, conditions and restrictions, easements, rights, rights of way, private agreements and any other recorded instruments
affecting the use of the Property, as they may exist from time to time. 

        H.    Trade
Fixtures: Anything affixed to the Leased Premises by Tenant at its expense for purposes of trade, manufacture, ornament, or domestic use (except replacement of
similar work or material originally installed by Landlord) which can be removed without injury to the Leased Premises unless such thing has, by the manner in which it is affixed, become an integral
part of the Leased Premises; provided, however, that all of Tenant's signs shall be Trade Fixtures regardless of how affixed to the Leased Premises. 

        16.11    Miscellaneous:    Should any provision of this Lease prove to be invalid or illegal, such invalidity or
illegality shall in no way affect, impair or invalidate any other provision hereof, and such remaining provisions shall remain in full force and effect. Time is of the essence with respect to the
performance of every provision of this Lease. Any executed copy of this Lease shall be deemed an original for all purposes. This Lease shall, subject to the provisions regarding assignment, apply to
and bind the respective heirs, successors, executors, administrators and assigns of Landlord and Tenant. If Tenant consists of more than one person or entity, then all members of Tenant shall be
jointly and severally liable hereunder. This Lease shall be construed and enforced in accordance with the laws of the State of California. The language in all parts of this Lease shall in all cases be
construed as a whole according to its fair meaning, and not strictly for or against either Landlord or Tenant. The captions used in this Lease are for convenience only and shall not be considered in
the construction or interpretation of any provision hereof. When the context of this Lease requires, the neuter gender includes the masculine, the feminine, a partnership or corporation or joint
venture, and the singular includes the plural. The terms "shall", "will", and "agree" are mandatory. The term "may" is permissive. When a party is required to do something by this Lease, it shall do
so at its sole cost and expense without right of reimbursement from the other party unless specific provision is made therefor. All measurements of gross leasable area shall be made from the outside
faces of exterior walls and the centerline of joint partitions. Where Tenant is obligated not to perform any act, Tenant is also obligated 

26

 

to restrain any others within its control from performing such act, including agents, invitees, contractors, subcontractors and employees. Landlord shall not become or be deemed a partner or a joint
venturer of Tenant by reason of this Lease. 

        16.12    Limitation on Tenant's Recourse:    Tenant expressly agrees that so long as Landlord is a corporation, trust
partnership, joint venture, unincorporated association, or other form of business entity, (i) the obligations of Landlord shall not constitute personal obligations of the officers, directors,
trustees, partners, joint venturers, members, owners, stockholders or other principals or representatives of such
business entity, and (ii) Tenant shall have recourse only to the assets of such business entity for the satisfaction of such obligations and not against the assets of such officers, directors,
trustees, partners, joint venturers, members, owners, stockholders, principals or representatives other than to the extent of their interest in the assets owned by such business entity. In this
regard, Tenant agrees that in the event of any actual or alleged failure, breach or default by Landlord of its obligations under this Lease, that (i) no member of Landlord shall be sued or
named as a party in any suit or action (except as may be necessary to secure jurisdiction of Landlord); (ii) no member of Landlord shall be required to answer or otherwise plead to any service
of process; (iii) no judgment will be taken against any member of Landlord; (iv) any judgment taken against any member of Landlord may be vacated and set aside at any time without
hearing; (v) no writ of execution will ever be levied against the assets of any member of Landlord; and (vi) these agreements by Tenant are enforceable both by Landlord and by any member
of Landlord. 

        16.13    Brokerage Commissions:    Tenant warrants that it has not had any dealings with any real estate brokers or
salesmen or incurred any obligations for the payment of real estate brokerage commission or finder's fees which would be earned or due and payable by reason of the execution this Lease. 

        16.14    Entire Agreement:    The lease, Exhibits "A" (site plan), "B" (floor plan). "C" (Tenant Improvements), "D"
(Certificate of Lease Commencement), "E" (Rules and Regulations), and the addendum or addenda and amendment(s) set forth in Paragraph 0.10 of the Basic Lease Provisions which are executed by
Landlord and Tenant concurrently with this Lease and are attached hereto (and by this reference incorporated herein), are the entire agreement between the parties, and there are no binding agreements
or representations between the parties except as expressed herein. No subsequent change or addition to this Lease shall be binding unless in writing and signed by the parties hereto. 

        16.15    No Representations:    Tenant acknowledges that neither Landlord nor Landlord's agent(s) has made any
representation or warranty as to (i) whether the Leased Premises may be used for the Permitted Use under existing Law, or (ii) the suitability of the Leased Premises or the Common Area
for the conduct of Tenant's business or the condition of any improvements located thereon. Tenant has fully investigated the suitability of the Leased Premises, the Building and the Property for
Tenant's business and has investigated to its satisfaction the physical condition of the Leased Premises, the Building and the Property and Tenant is relying on such investigation in entering into
this Lease. There are no oral agreements between Landlord and Tenant affecting this Lease, and this Lease supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements
and understandings, if any, between Landlord and Tenant or displayed by Landlord to Tenant with respect to the subject matter of this Lease. There are no representations between Landlord and Tenant
other than those contained in this Lease, and all reliance with respect to any representations contained in this Lease is reasonable. 

27

 

        IN
WITNESS WHEREOF, Landlord and Tenant executed this Lease with the intent to be legally bound thereby, to be effective as of the Effective Date of this Lease. 

	LANDLORD:	 	 
	

Gatito Enterprises Joint Venture
	
 	

 
	 	(Name)	 	 
	

By:	

/s/  PEARL ROSENTHAL      
 Pearl Rosenthal	
 	

 
	

Dated:	

4-25-00
	
 	

 
	

TENANT:	
 	

 
	

Healthe Tech, Inc
	
 	

 
	(Name)	 	 
	

By:	

/s/  NOEL JOHNSON      
 Noel Johnson	
 	

 
	

By:	

 	
 	

 
	 	
	 	 
	

Dated:	

4/25/00
	
 	

 

28

 
 

EXHIBIT "C"    
    
    TENANT IMPROVEMENTS    
  

	1.
	Prior
to August 1, 2000 landlord will replace front windows with double pane windows. In addition, landlord will replace some rear windows with double pane glass. The location
of rear windows to be replaced shall be determined by landlord.

	2.
	Tenant
shall have the option to install an additional rear window subject to landlord's approval and at the tenants sole expense.

	3.
	Landlord
will allow a carpet allowance for building standard carpet and base, not to exceed $15 a square yard, installed.

	4.
	Except
as listed above, tenant takes the space in an "as is" condition. 

	Healthe Tech, Inc	 	 	/s/  PEARL ROSENTHAL      
	
	 	
 Pearl Rosenthal

Gatito Enterprises Jt Vent
	

 	

/s/  NOEL JOHNSON      	
 	

 	

4-25-00
	
	 	

	By:	Noel Johnson	 	Date	 
	

 	

4/25/00	
 	

 	

 
	
 Date	 	 	 

 
 

EXHIBIT "D"    
    
    TENANT IN PRIOR POSSESSION    
  

        Tenant acknowledges that it knows the premises are possessed by a third party whose interest must be terminated by Owner; and, furthermore, Tenant agrees that if
Owner, for any reason, cannot deliver possession of the premises to Tenant by June 1, 2000 this Lease shall not be void, nor shall Owner be liable to Tenant for any loss or damages and this
Lease shall commence on the date possession of the premises is delivered to Tenant. Should Owner be unable to deliver the premises to Tenant by September 1, 2000, Tenant or Owner may terminate
this agreement by giving written notice within ten (10) days of its intent to terminate, to the other party without any liability occurring to either party. 

 
 

EXHIBIT "E"    
    
    RULES & REGULATIONS    
  

ý    As
of the date of this Lease there are no Rules and Regulations separate from this Lease 

o    The
Current Rules & Regulations are attached to this Lease as Exhibit E. 

 
 

EXHIBIT "F"    
    
    OPTION TO EXTEND    
  

        This option is personal to Healthe Tech, Inc (Original Tenants) and may be exercised only by the Original Tenants while occupying the Premises who do so without
the intent of thereafter assigning this Lease or subletting the Premises or any portion thereof, and may not be assigned, voluntarily or involuntarily, by or to any person. This option is not
assignable separate and apart from the Lease, nor may any Option be separated from the Lease in any manner, either by reservation or otherwise. 

        Original
Tenant is given the option to extend the term on all the provisions contained in this Lease, except for minimum monthly rent, for one five year period ("extended term")
following expiration of the initial term, by giving written notice of exercise of the option ("option notice") to Landlord at least three (3) months but not more than six (6) months
before expiration of the term. Provided that, if Tenant is in default on the date of giving the option notice, or if Tenant has ever been more than thirty (30) days delinquent in the payment of
rent, the option notice shall be totally ineffective, or if Tenant is in default on the date the extended term is to commence, the extended term shall not commence and this Lease shall expire at the
initial term. 

        The
minimum monthly rent for each year of the extended term shall be increased by the CPI adjustment per Paragraph 3.2 of the Lease. 

        There
shall be no other right to extend the term beyond the extended period. 

 
 

EXHIBIT "G"    
    
    DISCLOSURE    
  

        Tenant acknowledges that the disclosure has been made about the pending lawsuit at 325 Los Gatos-Saratoga Road, Los Gatos, Ca as set forth in the letter attached
as Attachment 1 to this lease. 

	Healthe Tech, Inc	 	 	/s/  PEARL ROSENTHAL      
	
	 	
 Pearl Rosenthal

Gatito Enterprises Jt Vent
	

 	

/s/  NOEL JOHNSON      	
 	

 	

4-23-00
	
	 	

	By:	Noel Johnson	 	Date	 
	

 	

4/25/00	
 	

 	

 
	
 Date	 	 	 

 
 

Exhibit "H"    
    
    Guarantee of Lease    
  

        A.    Gatito
Enterprises Joint Venture ("Owner" herein) and Healthe Tech, Inc ("Tenant" herein) are about to execute that certain Lease dated April 24, 2000 ("Lease"
herein), wherein Owner will lease to Tenant the premises commonly known as 325 Los Gatos/Saratoga Road, Los Gatos, California 95030 ("Premises" herein). 

        B.    Noel
and Elise Johnson ("Guarantor" herein) and Tenant acknowledge that Owner would not execute the Lease of Guarantor did not execute and deliver to Owner this Guarantee
of Lease ("Guarantee" herein). 

        NOW,
THEREFORE, in consideration of the execution of the Lease by Owner and as a material inducement to Owner to execute said Lease, Guarantor hereby agrees: 

        1.    Guarantor
unconditionally and irrevocably guarantee to Owner the prompt, full and faithful performance by Tenant of the provisions of the Lease, including, without
limitation, the payment of all rent and other sums payable by Tenant. If tenant shall default in the performance of any provisions of the Lease, Guarantor will perform said provisions. 

        2.    The
terms of the Lease may be waived or changed by agreement between or by the conduct of Tenant and Owner and the Lease may be assigned by Owner without notice to
Guarantor, without impairing the obligations of this Guarantee. This Guarantee shall thereafter guarantee the performance of the Lease as so waived or changed. 

        3.    Until
all provisions of the Lease on Tenant's part to be performed are fully performed, Guarantor (a) shall have no right of subrogation against Tenant; and
(b) subordinates any obligations of Tenant now or hereafter held by Guarantor to the obligations of Tenant to Owner under the Lease. 

        4.    This
Guarantee applies to the initial term and any extension or renewal of the Lease and to any holdover term. 

        5.    Guarantor
waives: (a) notice of acceptance of this Guarantee; (b) demand of payment, presentation, and protest; (c) any right to assert any statute
of limitations; (d) any right to require the Owner to proceed against Tenant or any other guarantor or any other person or entity liable to Owner; (e) any right to require Owner to apply
any security it may hold; (f) any right to require Owner to proceed under any other remedies Owner may have before proceeding against Guarantor; and (g) any and all surety or other
defenses in the nature thereof. 

        6.    If
there is more than one Guarantor, "Guarantor" shall include each of the undersigned and: (a) each provision of this Guarantee shall be binding on each of the
undersigned; (b) they shall be jointly and severally liable hereunder; and (c) Owner shall have the right to proceed against them jointly or in any other order. 

        7.    "Owner"
means the Owner specifically named in the Lease and said Owner's successors, heirs and assigns. 

        8.    If
an action is brought by Owner against Guarantor hereunder, the unsuccessful party shall pay the prevailing party costs and expenses and reasonable attorneys' fees
which shall be fixed by the Court. 

        9.    This
instrument constitutes the entire agreement between Owner and Guarantor with respect to the subject matter hereof, superseding all prior oral or written agreements
or understandings with respect thereto and may not be modified or discharged orally or otherwise than by an agreement in writing signed by Guarantor and Owner. 

 

        IN
WITNESS WHEREOF, Guarantor executes this Guarantee as of April 24, 2000. 

	 	/s/  NOEL JOHNSON      	 	 	 
	
 Guarantor-Noel Johnson	 	 	 
	

 	

/s/  ELISE JOHNSON      	
 	

 	

 
	
 Guarantor-Elise Johnson	 	 	 
	

14586 Aloha Avenue

Saratoga, Ca 95070	
 	

 	

 
	

 	

The foregoing Guarantee is accepted.	
 	

 	

 
	 	 	 	 	/s/  PEARL ROSENTHAL      
	 	 	 	
 Pearl Rosenthal

Gatito Enterprises Jt Venture

2

 
 

Attachment 1    
  

April 24,
2000 

Healthe
Tech, Inc

c/o Mr. and Mrs. Joel Johnson

14586 Aloha Ave

Saratoga, Ca 95070 

Re:
Lease-325 Los Gatos-Saratoga Road, Los Gatos 

Dear
Mr. and Mrs. Joel Johnson, 

        As
I have told you, there is a lawsuit pending against the owners of the building at 325 Los Gatos-Saratoga Road, Los Gatos. Out of an abundance of caution, we want to confirm this in
writing so that you, your employees or others may conduct whatever investigation you deem appropriate before occupying the building. The lawsuit is entitled Susan Pearce, et
al: V. Cornish & Carey Residential, Inc et al. It is filed in Santa Clara County Superior Court. The file number is CV764346. Suit was filed on February 25, 1997.
You, your employees or experts should feel free to review the Court's file, if you wish to do so. 

        In
brief, plaintiffs, allege that they suffered injuries because molds, fungi or other contaminants in the building. They have sued a wide variety of defendants, including their
employer, Cornish and Carey Residential, the prior tenant who was responsible for remodeling the building. They have also sued a variety of contractors who worked on the remodel or the ventilation
system. 

        Through
our attorney, we are aware of two reports which have been prepared concerning the building. We enclose both reports for review by you, your employees or any expert you designate.
Our attorney believes that another report was prepared by someone retained by Cornish & Carey, but we do not have access to that report. 

        Based
on advice of counsel, we cannot comment too much on the plaintiffs or the substance of the allegations. We can state it is our present view that the allegations do not appear to be
well grounded in either fact or law and that there is substantial doubt as to whether any molds or fungi at the building caused plaintiffs' alleged injuries. However, we note that the case has not
been tried and, therefore, this is simply our view. The crux of the complaint against the owners is that the plaintiffs claim they were exposed to mold or fungi which was located in the building
during their employment. We are informed by our attorney that expert opinion in this area is almost unanimous that the types of mold and fungi which were allegedly in the building are common and
located almost anywhere. Indeed, based on what we have been told, experts are generally in agreement that mold and fungi are typically and normally found in many, if not most, of the foods we eat, in
and on our bodies, in our homes and offices, in virtually all the wood around us, and in and on the soil and vegetation that surrounds us. We urge you to confirm this and review it with you own
experts and consultants. Obviously, we are not scientists and are not rendering any legal or scientific opinions. 

April 24, 2000

Page 2 

        In
order to further investigate whether there is any mold at the site of any alleged prior leaks, there will be some additional inspection and testing done in the building in the next
month or so. To the extent we are able, we will make those results available to you. There may be limitations placed on this because the matter is in litigation. If the investigation reveals mold,
rest assured that the owners will take reasonable steps to remedy that situation and make that known to you. In addition, we invite you or any expert you designate to participate in the investigation.
Please let us know promptly if you wish to be present at the site on the day of the investigation, and the name and background of any expert you wish to bring. Please let us know by May 1,
2000, as our attorney hopes to complete this testing within the next 30 to 60 days. Of course, any person you retain is obligated to do nothing to interfere with the inspection or testing. 

        Thank
you. 

Very
truly yours,

Gatito Enterprises LLC 

	 	/s/  PEARL ROSENTHAL      	 	 	 
	
 By Its Manager, Pearl Rosenthal

	 	 	 

 
 

Attachment 2    
  

This
lease will not be effective until both landlord and tenant have signed the bottom of this page signifying that they are in agreement that the recommendations listed in the indoor air quality
report of September 17, 1997 have been completed. 

Landlord: 

	Gatito Enterprises Joint Venture
	 	 	 
	(Name)	 	 	 
	

By:	

/s/  PEARL ROSENTHAL      
 Pearl Rosenthal	
 	

 	

 
	

Dated:	

4/25/00
	
 	

 	

 
	

Tenant:	
 	

 	

 
	

Healthe Tech, Inc
	
 	

 	

 
	(Name)	 	 	 
	

By:	

/s/  NOEL JOHNSON      
 Noel Johnson	
 	

 	

 
	

By:	

/s/  ELISE JOHNSON      
	
 	

 	

 
	

Dated:	

4/25/00
	
 	

 	

 

QuickLinks

EXHIBIT 10.7

Healthe Tech, Inc June 1, 2000

OFFICE LEASE

TABLE OF CONTENTS

ARTICLE 1 DEFINITIONS

ARTICLE 2 LEASE, TERM AND POSSESSION

ARTICLE 3 RENT

ARTICLE 4 USE OF LEASED PREMISES

ARTICLE 5 TRADE FIXTURES, LEASEHOLD IMPROVEMENTS AND LANDLORD IMPROVEMENTS

ARTICLE 6 REPAIR AND MAINTENANCE

ARTICLE 7 WASTE DISPOSAL AND UTILITIES

ARTICLE 8 REAL PROPERTY TAXES

ARTICLE 9 INSURANCE

ARTICLE 10 LIMITATION ON LANDLORD'S LIABILITY AND INDEMNITY

ARTICLE 11 DAMAGE TO LEASED PREMISES

ARTICLE 12 CONDEMNATION

ARTICLE 13 DEFAULT AND REMEDIES

ARTICLE 14 ASSIGNMENT AND SUBLETTING

ARTICLE 15 TERMINATION

ARTICLE 16 GENERAL PROVISIONS

EXHIBIT "C" TENANT IMPROVEMENTS

EXHIBIT "D" TENANT IN PRIOR POSSESSION

EXHIBIT "E" RULES & REGULATIONS

EXHIBIT "F" OPTION TO EXTEND

EXHIBIT "G" DISCLOSURE

Exhibit "H" Guarantee of Lease

Attachment 1

Attachment 2

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