Document:

Lease between the Registrant and John Arrillaga or his Successor

 Exhibit 10.19 
  

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 LEASE AGREEMENT 
 THIS LEASE, made this 21st day of November, 2006, between JOHN ARRILLAGA, Trustee, or his Successor Trustee, UTA dated 7/20/77 (JOHN ARRILLAGA SURVIVOR’S TRUST) as amended, hereinafter called Landlord, and
OPTI, INC., a California corporation, hereinafter called Tenant. 
 WITNESSETH: 
 Landlord hereby leases to Tenant and Tenant hereby hires and takes from Landlord those certain premises (the “Premises”) outlined in Red on
Exhibit A, attached hereto and incorporated herein by this reference thereto more particularly described as follows: 
 A portion of that certain
20,450+ square foot, two-story building located at 3430 West Bayshore Road, Suite 103, Palo Alto, California 94303, consisting of approximately 2,804+ square feet of space on the first floor of the Building (including
Tenant’s Proportionate Share of the Common Area of the Building). Said Premises is more particularly shown within the area outlined in Red on Exhibit A attached hereto. The entire parcel, of which the Premises is a part, is shown
within the area outlined in Green on Exhibit A attached. The Premises shall be improved for the Tenant, at Tenant’s sole cost and expense, by Landlord pursuant to Paragraph 6.B (“As Is: Tenant Improvements to be Constructed for
Tenant by Landlord at Tenant’s Sole Cost and Expense”) and as shown on Exhibit B attached hereto, and, subject to Landlord making said improvements and to Paragraph 6 (“As-Is Basis”), is leased on an “as-is”
basis, in its present condition, and in the configuration as shown in Red on Exhibit B attached hereto. 
 The word
“Premises” as used throughout this Lease is hereby defined to include the nonexclusive use of landscaped areas, sidewalks and driveways in front of or adjacent to the Premises, and the nonexclusive use of the area directly underneath or
over such sidewalks and driveways. The gross leasable area of the building shall be measured from outside of exterior walls to outside of exterior walls, and shall include any atriums, covered entrances or egresses and covered building loading
areas. 
 Said letting and hiring is upon and subject to the terms, covenants and conditions hereinafter set forth and Tenant covenants as a
material part of the consideration for this Lease to perform and observe each and all of said terms, covenants and conditions. This Lease is made upon the conditions of such performance and observance. 
 1. USE. Tenant shall use the Premises only in conformance with applicable governmental laws, regulations, rules and ordinances for the
purpose of general office, and storage uses necessary for Tenant to conduct Tenant’s business, provided that such uses shall be in accordance with all current and future applicable governmental laws and ordinances and zoning restrictions, and
for no other purpose. Tenant shall not do or permit to be done in or about the Premises nor bring or keep or permit to be brought or kept in or about the Premises anything which is prohibited by or will in any way increase the existing rate of (or
otherwise affect) fire or any insurance covering the Premises or any part thereof, or any of its contents, or will cause a cancellation of any insurance covering the Premises or any part thereof, or any of its contents. Tenant shall not do or permit
to be done anything in, on or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Premises or neighboring premises or injure or annoy them, or use or allow the Premises to be used for
any improper, immoral, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. No sale by auction shall be permitted on the Premises. Tenant shall not place any loads upon the floors,
walls, or ceiling which endanger the structure, or place any harmful fluids or other materials in the drainage system of the building, or overload existing electrical or other mechanical systems. No waste materials or refuse shall be dumped upon or
permitted to remain upon any part of the Premises or outside of the building in which the Premises are a part, except in trash containers placed inside exterior enclosures designated by Landlord for that purpose or inside of the building proper
where designated by Landlord. No materials, supplies, equipment, finished products or semi-finished products, raw materials or articles of any nature shall be stored upon or permitted to remain outside the Premises. Tenant shall not place anything
or allow anything to be placed near the glass of any window, door partition or wall which may appear unsightly from outside the Premises. No loudspeaker or other device, system or apparatus which can be heard outside the Premises shall be used in or
at the Premises without the prior written consent of Landlord. Tenant shall not commit or suffer to be committed any waste in or upon the Premises. Tenant shall indemnify, defend and hold Landlord harmless against any loss, expense, damage,
reasonable attorneys’ fees, or liability arising out of failure of Tenant to comply with any applicable law for which 
  

					
	Multi Tenant/Single Parcel	 	Page 1 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 Tenant is obligated to comply under the terms of this Lease. Tenant shall comply with any covenant, condition, or
restriction (“CC&R’s”) affecting the Premises which regulates Tenant’s use of the Premises. The provisions of this Paragraph are for the benefit of Landlord only and shall not be construed to be for the benefit of any Tenant
or occupant of the Premises. 
 2. TERM. 
 A. The Term of this Lease shall be for a period of THREE (3) years (unless sooner terminated as hereinafter provided) and, subject to Paragraphs 2B and 3, shall commence on the 1st day of January, 2007
(the “Commencement Date”) and end on the 31st day of December, 2009. Notwithstanding anything to the contrary herein, in no event shall the Lease Commencement Date be prior to January 1, 2007 unless any portion of the Premises are
occupied by any of Tenant’s operating personnel for the conduct of any of its business prior to January 1, 2007, in which event the Lease Commencement Date shall be changed from the scheduled Commencement Date of January 1, 2007 to
the earlier date that Tenant occupies any portion of the Premises 
 B. Tender of Possession. Possession of the Premises shall be
tendered by Landlord to Tenant and the Term of the Lease shall commence when the first of the following occurs: 
 (a) Upon the occupancy of
the Premises by any of Tenant’s operating personnel for the conduct of any of its business; or 
 (b) When the Tenant Improvements have
been substantially completed for Tenant’s use and occupancy and Landlord has delivered the Premises to Tenant, in accordance and compliance with Paragraph 6.B (“As Is: Tenant Improvements to be Constructed for Tenant by Landlord at
Tenant’s Sole Cost and Expense”) and Exhibit B of this Lease; provided, however, that in no event, except as noted in Paragraphs 2.A or 2.B(a) above or 2.C (“Early Entry”) below, shall the Term of the Lease commence before
January 1, 2007; or 
 (c) As otherwise agreed in writing. 
 C. Early Entry: Upon receipt of written notice from Landlord (by U.S. Mail, facsimile or electronic mail) that the Premises is available for
Tenant’s entry, Tenant and its agents and contractors shall be permitted to enter the Premises prior to the Commencement Date for the purpose of installing at Tenant’s sole cost and expense, Tenant’s trade fixtures and equipment,
telephone equipment, security systems and cabling for computers (“Early Entry Date”). Such entry shall be subject to all of the terms and conditions of this Lease, except that Tenant shall not be required to pay any Rent on account
thereof, provided none of Tenant’s operating personnel occupy said Premises; except, Tenant will be responsible for all utilities expenses as outline in Lease Paragraph 12 (“Utilities of the Building in Which the Premises are
Located”) from the Early Entry Date. Any entry or installation work by Tenant and its agents in the Premises pursuant to this Paragraph 2.C shall (i) be undertaken at Tenant’s sole risk, (ii) not interfere with or
delay Landlord’s work in the Premises (if any), and (iii) not be deemed occupancy or possession of the Premises for purposes of the Lease. Tenant shall indemnify, defend, and hold Landlord harmless from any and all loss, damage, liability,
expense (including reasonable attorney’s fees), claim or demand of whatsoever character, direct or consequential, including, but without limiting thereby the generality of the foregoing, injury to or death of persons and damage to or loss of
property arising out of the exercise by Tenant of any early entry right granted hereunder. In the event Tenant’s work in said Premises delays the completion of the Tenant Improvements to be provided by Landlord, if any, or in the event Tenant
has not completed construction of its interior improvements, if any, by the scheduled Commencement Date, it is agreed between the parties that this Lease will commence on the earlier of (x) occupancy of any portion of the Premises by any of
Tenant’s operating personnel for the conduct of any of its business pursuant to Paragraph 2.B(a) (“Term: Tender of Possession”) above, or (y) the scheduled Commencement Date of January 1, 2007 regardless of the construction
status of said interior improvements completed or to be completed by Tenant or Landlord, as the case may be. It is the intent of the parties hereto that the commencement of Tenant’s obligation to pay Rent under the Lease not be delayed by any
of such causes or by any other act of Tenant (except as expressly provided herein) and, in the event it is so delayed, Tenant’s obligation to pay Rent under the Lease shall commence as of the date it would otherwise have commenced absent delay
caused by Tenant. 
 It is agreed in the event said Lease commences on a date other than the first day of the month the Term of the Lease
will be extended to account for the number of days in the partial month. The Basic Rent during the resulting partial month will be pro-rated (for the number of days in the partial month) at the Basic Rent rate scheduled for the projected
Commencement Date as shown in Paragraph 4A. 
  

					
	Multi Tenant/Single Parcel	 	Page 2 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 3. POSSESSION. Subject to Paragraph 2.C (“Term: Early Entry”) above and the
terms and conditions stated herein, if Landlord, for any reason whatsoever, cannot deliver possession of said Premises to Tenant at the commencement of the said Term, as hereinbefore specified, this Lease shall not be void or voidable; no obligation
of Tenant shall be affected thereby; nor shall Landlord or Landlord’s agents be liable to Tenant for any loss or damage resulting therefrom; but in that event the commencement and termination dates of the Lease, and all other dates affected
thereby shall be revised to conform to the date of Landlord’s delivery of possession, as specified in Paragraph 2B above. The above is, however, subject to the provision that the period of delay of delivery of the Premises shall not exceed
sixty (60) days from the Commencement Date herein (except those delays caused by Acts of God, strikes, war, utilities, governmental bodies, weather, unavailable materials, and delays beyond Landlord’s control shall be excluded in
calculating such period) in which instance Tenant, at its option, may, by written notice to Landlord, terminate this Lease; provided Tenant submits said notice to Landlord prior to the expiration of said 60 day period. 
 4. RENT. 
 A. Basic
Rent. Subject to the terms of this Paragraph 4A, Tenant agrees to pay to Landlord at such place as Landlord may designate without deduction, offset, prior notice, or demand, and Landlord agrees to accept as Basic Rent for the Leased Premises the
total sum of THREE HUNDRED TWELVE THOUSAND SEVEN AND 80/100 Dollars ($312,007.80) in lawful money of the United States of America, payable as follows: 
 Upon Tenant’s execution of this Lease, the sum of EIGHT THOUSAND FOUR HUNDRED TWELVE AND N0/100 DOLLARS ($8,412.00) shall be due, representing the Basic Rent for the period of January 1, 2007 through
January 31, 2007. 
 On February 1, 2007, the sum of EIGHT THOUSAND FOUR HUNDRED TWELVE AND NO/100 DOLLARS ($8,412.00) shall be
due, and a like sum due on the first day of each month thereafter, through and including December 1, 2007. 
 On January 1, 2008,
the sum of EIGHT THOUSAND SIX HUNDRED SIXTY-FOUR AND 36/100 DOLLARS ($8,664.36) shall be due, and a like sum due on the first day of each month thereafter, through and including December 1, 2008. 
 On January 1, 2009, the sum of EIGHT THOUSAND NINE HUNDRED TWENTY-FOUR AND 29/100 DOLLARS ($8,924.29) shall be due, and a like sum due on the first
day of each month thereafter, through and including December 1, 2009; or until the entire aggregate sum of THREE HUNDRED TWELVE THOUSAND SEVEN AND 80/100 Dollars ($312,007.80) has been paid. 
 B. Time for Payment. Full monthly Rent is due in advance on the first day of each calendar month. In the event that the Term of this Lease
commences on a date other than the first day of a calendar month, on the date of commencement of the Term hereof Tenant shall pay to Landlord as Rent for the period from such date of commencement to the first day of the next succeeding calendar
month that proportion of the monthly Rent hereunder for the number of days between such date of commencement and the first day of the next succeeding calendar month. In the event that the Term of this Lease for any reason ends on a date other than
the last day of a calendar month, on the first day of the last calendar month of the Term hereof Tenant shall pay to Landlord as Rent for the period from said first day of said last calendar month to and including the last day of the Term hereof
that proportion of the monthly Rent hereunder for the number of days between said first day of said last calendar month and the last day of the Term hereof. 
 C. Late Charge. Notwithstanding any other provision of this Lease, if Tenant is in default in the payment of Rent as set forth in this Paragraph 4 when due, or any part thereof, Tenant agrees to pay Landlord,
in addition to the delinquent Rent due, a late charge for each Rent payment in default ten (10) days. Said late charge shall equal ten percent (10%) of each Rent payment so in default. 
 D. Additional Rent. Beginning with the Commencement Date of the Term of this Lease, Tenant shall pay to Landlord or to Landlord’s designated
agent in addition to the Basic Rent and as Additional Rent the following: 
 (a) All Taxes relating to the Premises as set forth in Paragraph
13, and 
 (b) All insurance premiums and deductibles relating to the Premises, as set forth in Paragraph 17, and 
  

					
	Multi Tenant/Single Parcel	 	Page 3 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 (c) All charges, costs and expenses, which Tenant is required to pay hereunder, together with all
interest and penalties, costs and expenses including reasonable attorneys’ fees and legal expenses, that may accrue thereto in the event of Tenant’s failure to pay such amounts, and all damages, reasonable costs and expenses which Landlord
may incur by reason of default of Tenant or failure on Tenant’s part to comply with the terms of this Lease. In the event of nonpayment by Tenant of Additional Rent, Landlord shall have all the rights and remedies with respect thereto as
Landlord has for nonpayment of Rent. 
 References to “Proportionate Share” herein and throughout the Lease shall mean the
Proportionate Share allocated to the Premises based on (a) the total square footage of Tenant’s Premises as a percentage of the total square footage of the Building (2,804+ square foot Premises divided by 20,450+ square foot
Building equals 13.71%) or (b) such other equitable basis as calculated by Landlord. 
 The Additional Rent due hereunder shall be paid
to Landlord or Landlord’s agent (i) within five days for taxes and insurance and within thirty (30) days for all other Additional Rent items after presentation of invoice from Landlord or Landlord’s agent setting forth such
Additional Rent (notwithstanding anything to the contrary herein, Landlord shall not be required to submit ongoing monthly statements to Tenant reflecting amounts owed as Additional Rent) and/or (ii) at the option of Landlord, Tenant shall pay
to Landlord monthly, in advance, Tenant’s prorata share of an amount estimated by Landlord to be Landlord’s approximate average monthly expenditure for such Additional Rent items, which estimated amount shall be reconciled within one
hundred twenty (120) days of the end of each calendar year or more frequently if Landlord elects to do so at Landlord’s sole and absolute discretion as compared to Landlord’s actual expenditure for said Additional Rent items, with
Tenant paying to Landlord, within thirty (30) days after delivery by Landlord to Tenant of a written reconciliation of the amounts to be paid, any amount of actual expenses expended by Landlord in excess of said estimated amount, or Landlord
crediting to Tenant (providing Landlord may withhold any amount thereof required to cure Tenant’s default in the performance of any of the terms, covenants and conditions of this Lease) any amount of estimated payments made by Tenant in excess
of Landlord’s actual expenditures for said Additional Rent Items. Within thirty (30) days after receipt of Landlord’s reconciliation, Tenant shall have the right, at Tenant’s sole expense, to audit, at a mutually convenient time
at Landlord’s office, Landlord’s records specifically limited to the foregoing expenses. Such audit must be conducted by Tenant or an independent nationally recognized accounting firm that is not being compensated by Tenant or other third
party on a contingency fee basis. Tenant shall submit to Landlord a complete copy of said audit at no expense to Landlord and a written notice stating the results of said audit, and if such notice by Tenant and the respective audit reveals that
Landlord has overcharged Tenant, and the audit is not challenged by Landlord, the amount overcharged shall be credited to Tenant’s account within thirty (30) days after completion of Landlord’s review and approval of said audit.

 Landlord shall, upon request by Tenant, provide Tenant with copies of individual invoices related to the foregoing actual expenses, either
by facsimile or by U.S. mail; however, in no event shall Landlord be obligated to provide duplicate copies of any invoice or other Lease documentation to Tenant and/or Tenant’s representative (if any) for an audit of Tenant’s records
outside of Landlord’s office. 
 E. Management Fee. Beginning with the Commencement Date of the Term of this Lease, Tenant shall
pay to Landlord, in addition to the Basic Rent and Additional Rent, a monthly management fee (“Management Fee”) equal to three percent (3%) of the Basic Rent due for each month during the Lease Term. Tenant shall be responsible for
calculating the monthly Management Fee based on the Basic Rent schedule shown in Paragraph 4.A above, and for paying said Management Fee by the first day of each month during the Term of this Lease. Tenant’s failure to pay the monthly
Management Fee by the due date will result in a Late Charge being assessed pursuant to the terms of Paragraph 4.C above. 
 The reference to
“Rent” in this Paragraph 4 includes Basic Rent, Additional Rent, and Management Fee. The respective obligations of Landlord and Tenant under this Paragraph shall survive the expiration or other termination of the Term of this Lease, and if
the Term hereof shall expire or shall otherwise terminate on a day other than the last day of a calendar year, the actual Additional Rent incurred for the calendar year in which the Term hereof expires or otherwise terminates shall be determined and
settled on the basis of the statement of actual Additional Rent for such calendar year and shall be prorated in the proportion which the number of days in such calendar year preceding such expiration or termination bears to 365. 
 F. Place of Payment of Rent. All Rent hereunder shall be paid to Landlord at the office of Landlord at: JOHN ARRILLAGA SURVIVOR’S TRUST,
2560 MISSION COLLEGE BOULEVARD, SUITE 101, SANTA CLARA, CA 95054, or to such other person or to such other place as Landlord may from time to time designate in writing. 
  

					
	Multi Tenant/Single Parcel	 	Page 4 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 G. Security Deposit. Concurrently with Tenant’s execution of this Lease, Tenant shall
deposit with Landlord the sum of SEVENTEEN THOUSAND EIGHT HUNDRED FORTY-EIGHT AND 58/100 Dollars ($17,848.58). Said sum shall be held by Landlord as a Security Deposit for the faithful performance by Tenant of all of the terms, covenants, and
conditions of this Lease to be kept and performed by Tenant during the Term hereof. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, the provisions relating to the payment of Rent and any of the monetary
sums due herewith, Landlord may (but shall not be required to) use, apply or retain all or any part of this Security Deposit for the payment of any other amount which Landlord may 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 said Deposit is so used or applied, Tenant shall, within ten (10) days after written demand therefor, deposit cash with Landlord in the
amount sufficient to restore the Security Deposit to its original amount. 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 interest on such Deposit. If Tenant fully and faithfully performs 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) at the expiration of the Lease Term and after Tenant has vacated the Premises; provided, however, that Landlord may withhold therefrom the amount necessary to cover the cost of
restoration of the Premises if Tenant fails to do so as required under Lease Paragraph 5 and to cure any then uncured default by Tenant under this Lease. In the event of termination of Landlord’s interest in this Lease, Landlord shall transfer
said Deposit to Landlord’s successor in interest whereupon Tenant agrees to release Landlord from liability for the return of such Deposit or the accounting therefor. Tenant hereby waives the protection of Section 1950.7 of the California
Civil Code. Within forty-five (45) days after the expiration or earlier termination of the Lease Term, and after Tenant has vacated and surrendered the Premises, Landlord shall return to Tenant the then current balance of Tenant’s Security
Deposit (except for amounts that Landlord has deducted to cure defaults of Tenant under the Lease, or to compensate Landlord for damages for which Tenant is liable for pursuant to this Lease). 
 5. ACCEPTANCE AND SURRENDER OF PREMISES. Subject to Paragraphs 11 (“Expenses of Operation, Management, and Maintenance of the Common
Areas of the Parcel and Building in Which the Premises are Located”) and 19B (“Compliance”), and by entry hereunder, Tenant accepts the Premises as being in good and sanitary order, condition and repair and accepts the building and
improvements included in the Premises in their present condition and without representation or warranty by Landlord as to the condition of such building or as to the use or occupancy which may be made thereof. Any exceptions to the foregoing must be
by written agreement executed by Landlord and Tenant. Tenant agrees on the last day of the Lease Term, or on the sooner termination of this Lease, to surrender the Premises promptly and peaceably to Landlord in good condition and repair (damage by
Acts of God, fire, normal wear and tear excepted), with all interior walls painted, or cleaned so that they appear freshly painted, and repaired or replaced, if damaged; all floors cleaned and waxed; all carpets cleaned and shampooed; all broken,
marred or nonconforming acoustical ceiling tiles replaced; all windows washed; the air conditioning and heating systems serviced by a reputable and licensed service firm and in good operating condition and repair; the plumbing and electrical systems
and lighting in good order and repair, including replacement of any burned out or broken light bulbs or ballasts; the lawn and shrubs in good condition including the replacement of any dead or damaged plantings; the sidewalk, driveways and parking
areas in good order, condition and repair; together with all alterations, additions, and improvements which may have been made, in, to, or on the Premises (except moveable trade fixtures installed at the expense of Tenant) except that Tenant shall
ascertain from Landlord within thirty (30) days before the end of the Term of this Lease whether Landlord desires to have the Premises or any part or parts thereof restored to their condition and configuration as when the Premises were
delivered to Tenant and if Landlord shall so desire, then Tenant shall restore said Premises or such part or parts thereof before the end of this Lease at Tenant’s sole cost and expense. Tenant, on or before the end of the Term or sooner
termination of this Lease, shall remove all of Tenant’s personal property and trade fixtures from the Premises, and all property not so removed on or before the end of the Term or sooner termination of this Lease shall be deemed abandoned by
Tenant and title to same shall thereupon pass to Landlord without compensation to Tenant. Landlord may, upon termination of this Lease, remove all moveable furniture and equipment so abandoned by Tenant, at Tenant’s sole cost, and repair any
damage caused by such removal at Tenant’s sole cost. Upon surrender of the Premises to Landlord, Tenant shall provide Landlord with keys for all interior locking doors and Tenant agrees to pay to Landlord the cost of Landlord re-keying
(i) all exterior doors (including mechanical rooms) and (ii) all interior doors with locks to which Tenant is not able to provide Landlord keys. If Tenant has installed a cardkey system, Tenant shall also be responsible for the costs
Landlord incurs in replacing the doors and/or door frames in which such cardkey system was installed and removing any and all equipment and wiring related thereto. If the Premises be not surrendered at the end of the Term or sooner termination of
this Lease, Tenant shall indemnify Landlord against loss or liability resulting from the delay by Tenant in so surrendering the Premises including, without limitation, any claims made by any succeeding Tenant founded on such delay. Nothing contained
herein shall be construed as an extension of the Term hereof or as a consent of Landlord to any 

  

					
	Multi Tenant/Single Parcel	 	Page 5 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
holding over by Tenant. The voluntary or other surrender of this Lease or the Premises by Tenant or a mutual cancellation of this Lease shall not work as a
merger and, at the option of Landlord, shall either terminate all or any existing subleases or subtenancies or operate as an assignment to Landlord of all or any such subleases or subtenancies. 
 6. “AS-IS” BASIS. Subject only to Paragraphs 11 (“Expenses of Operation, Management, and Maintenance of the Common Areas of
the Parcel and Building in Which the Premises are Located”) and 19B (“Compliance”), it is hereby agreed that the Premises leased hereunder is leased strictly on an “as-is” basis and in its present condition, and in the
configuration as shown on Exhibit B attached hereto, and by reference made a part hereof. Except as noted herein, it is specifically agreed between the parties that Landlord shall not be required to make, nor be responsible for any cost, in
connection with any repair, restoration, and/or improvement to the Premises in order for this Lease to commence, or thereafter, throughout the Term of this Lease. Notwithstanding anything to the contrary within this Lease, Landlord makes no warranty
or representation of any kind or nature whatsoever as to the condition or repair of the Premises, nor as to the use or occupancy which may be made thereof. 
 5. A. Tenant Improvements to be Constructed for Tenant by Landlord at Tenant’s Sole Cost and Expense. Landlord, as an accommodation to Tenant, has agreed to have installed by vendors selected by Landlord,
at Tenant’s sole cost and expense, the following tenant improvements within the Premises (“Tenant Improvement”) subject to the following terms and conditions herein: 
 1) Install the walls and doors shown in Blue on Exhibit B attached hereto; 
 2) Install glass wall as shown in Yellow on Exhibit B attached hereto; 
 3) Provide and install a new sink and base cabinets in the location shown in Purple on Exhibit B attached hereto; 
 Tenant shall be billed directly by the vendors/contractors performing said Tenant Improvements and Tenant shall be responsible for paying all costs
related to said Tenant Improvements directly to the vendor/contractor within the period allowed by said vendor/contractor. Notwithstanding anything to the contrary herein, Tenant shall look only to the respective vendor/contractor and not to
Landlord for any corrections and/or repairs or defects to said Tenant Improvements. 
 Except as otherwise set forth herein, the Tenant
Improvements shall become a part of the Premises and Tenant shall not be required or allowed to remove said Tenant Improvements upon Lease Termination. 
 7. ALTERATIONS AND ADDITIONS. 
 A. Tenant shall not make, or suffer to be made, any alteration
or addition to the Premises, or any part thereof, without the written consent of Landlord first had and obtained by Tenant (such consent not to be unreasonably withheld), but at the cost of Tenant, and any addition to, or alteration of, the
Premises, except moveable furniture and trade fixtures, shall at once become a part of the Premises and belong to Landlord. Landlord reserves the right to approve all contractors and mechanics proposed by Tenant to make such alterations and
additions. As a condition to Landlord granting its consent to any alterations, Tenant shall deliver plans and specifications for Landlord’s review and approval, and within five business days of completion of said alterations, Tenant shall
deliver to Landlord an original 1/8” scaled sepia or an other electronic format as solely determined by Landlord. Tenant shall retain title to all moveable furniture and trade fixtures placed in the Premises. All heating, lighting, electrical,
air conditioning, security systems, floor to ceiling partitioning, drapery, carpeting, and floor installations made by Tenant, together with all property that has become an integral part of the Premises, shall not be deemed trade fixtures. Tenant
agrees that it will not proceed to make such alteration or additions, without having obtained consent from Landlord to do so, and until five (5) days from the receipt of such consent, in order that Landlord may post appropriate notices to avoid
any liability to contractors or material suppliers for payment for Tenant’s improvements. Tenant will at all times permit such notices to be posted and to remain posted until the completion of work. Tenant shall, if required by Landlord, secure
at Tenant’s own cost and expense, a completion and lien indemnity bond, satisfactory to Landlord, for such work. Tenant further covenants and agrees that any mechanic’s lien filed against the Premises for work claimed to have been done
for, or materials claimed to have been furnished to Tenant, will be discharged by Tenant, by bond or otherwise, within ten (10) days after notice of filing thereof, at the cost and expense of Tenant. Any exceptions to the foregoing must be made
in writing and executed by both Landlord and Tenant. 
 B. Tenant shall have the right to reconfigure modular, non-floor-to-ceiling walls and
non-floor-to-ceiling partitions without Landlord’s prior consent, which have been installed by Tenant and paid for by Tenant. 
  

					
	Multi Tenant/Single Parcel	 	Page 6 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 C. At all times during the Term of this Lease, Tenant shall have the right to install and remove
trade fixtures as defined in the Lease which are installed and paid for by Tenant, so long as Tenant immediately repairs all damage caused by the installation thereof and returns the Premises to the condition existing prior to the installation of
such trade fixtures and repairs and restores any so-called “donuts” or gaps in the roof and/or floor (including floor structure, subfloor and appropriate floor covering for said area) and/or floor tiles and/or ceiling tiles and lighting
resulting from the removal of said trade fixtures. 
 8. RULES AND REGULATIONS AND COMMON AREA. Subject to the terms and
conditions of this Lease and such Rules and Regulations as Landlord may from time to time prescribe, Tenant and Tenant’s employees, invitees and customers shall, in common with other occupants of the Parcel/Building in which the premises are
located, and their respective employees, invitees and customers, and others entitled to the use thereof, have the non-exclusive right to use the access roads, parking areas, and facilities provided and designated by Landlord for the general use and
convenience of the occupants of the Parcel/Building in which the Premises are located, which areas and facilities are referred to herein as “Common Area”. This right shall terminate upon the termination of this Lease. Landlord reserves the
right from time to time to make changes in the shape, size, location, amount and extent of Common Area; provided, however, that such changes shall not unreasonably interfere with Tenant’s use of the Premises or its access hereto. Landlord
further reserves the right to promulgate such reasonable rules and regulations relating to the use of the Common Area, and any part or parts thereof, as Landlord may deem appropriate for the best interests of the occupants of the Parcel/Building.
Such Rules and Regulations may be amended by Landlord from time to time, with or without advance notice, and all amendments shall be effective upon delivery of a copy to Tenant. Landlord shall not be responsible to Tenant for the non-performance by
any other tenant or occupant of the Parcel/Building of any of said Rules and Regulations. 
 Landlord shall operate, manage and maintain the Common Area. The
manner in which the Common Area shall be maintained and the expenditures for such maintenance shall be at the reasonable discretion of Landlord. 
 9. PARKING. Tenant shall have the right to the nonexclusive use of seven (7) parking spaces in the common parking area of the building. Tenant agrees that Tenant, Tenant’s employees, agents, representatives, and/or
invitees shall not use parking spaces in excess of said 7 parking spaces allocated to Tenant hereunder. Landlord shall have the right, at Landlord’s sole discretion, to specifically designate the location of Tenant’s parking spaces within
the common parking area of the building in the event of a dispute among the tenants occupying the building referred to herein, in which event Tenant agrees that Tenant, Tenant’s employees, agents, representatives and/or invitees shall not use
any parking spaces other than those parking spaces specifically designated by Landlord for Tenant’s use. Said parking spaces, if specifically designated by Landlord to Tenant, may be relocated by Landlord at any time, and from time to time.
Landlord reserves the right, at Landlord’s sole discretion, to rescind any specific designation of parking spaces, thereby returning Tenant’s parking spaces to the common parking area. Landlord shall give Tenant written notice of any
change in Tenant’s parking spaces. Tenant shall not, at any time, park, or permit to be parked, any trucks or vehicles adjacent to the loading area so as to interfere in any way with the use of such areas, nor shall Tenant, at any time, park or
permit the parking of Tenant’s trucks and other vehicles or the trucks and vehicles of Tenant’s suppliers or others, in any portion of the common areas not designated by Landlord for such use by Tenant. Tenant shall not park nor permit to
be parked, any inoperative vehicles or equipment on any portion of the common parking area or other common areas of the building. Tenant agrees to assume responsibility for compliance by its employees with the parking provision contained herein. If
Tenant or its employees park in other than designated parking areas, then Landlord may charge Tenant, as an additional charge, and Tenant agrees to pay Ten Dollars ($10.00) per day for each day or partial day each such vehicle is parking in any area
other than that designated. Tenant hereby authorizes Landlord, at Tenant’s sole expense, to tow away from the building any vehicle belonging to Tenant or Tenant’s employees parked in violation of these provisions, or to attach violation
stickers or notices to such vehicles. Tenant shall use the parking area for vehicle parking only and shall not use the parking areas for storage. 
 10. TENANT MAINTENANCE. Except as otherwise provided for in Paragraph19B (“Compliance”), Tenant shall, at its sole cost and expense, keep and maintain the Premises (including appurtenances) and every part thereof in
a high standard of maintenance and repair, and in good and sanitary condition. Tenant’s maintenance and repair responsibilities herein referred to include, but are not limited to, janitorization, plumbing systems within the non-common areas of
the Premises (such as water and drain lines, sinks), electrical systems within the non-common areas of the Premises (such as outlets, lighting fixtures, lamps, bulbs, tubes, ballasts), heating and air-conditioning controls within the non-common
areas of the Premises (such as mixing boxes, thermostats, time clocks, supply and return grills), non-common elevators (if any), and all interior improvements within the Premises including but not limited to: wall coverings, window coverings,
acoustical ceilings, vinyl tile, carpeting, partitioning, doors 

  

					
	Multi Tenant/Single Parcel	 	Page 7 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
(both interior and exterior, including closing mechanisms, latches, locks), skylights (if any), automatic fire extinguishing systems, and all other interior
improvements of any nature whatsoever. Tenant agrees to provide carpet shields under all rolling chairs or to otherwise be responsible for wear and tear of the carpet caused by such rolling chairs if such wear and tear exceeds that caused by normal
foot traffic in surrounding areas. Areas of excessive wear shall be replaced at Tenant’s sole expense upon Lease termination. Tenant hereby waives all rights hereunder, and benefits of, subsection 1 of Section 1932 and Sections 1941 and
1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. 
 Notwithstanding anything to the contrary in
this Paragraph 10, Landlord shall repair, including replacement related to, damage to the structural shell, foundation, and roof structure (but not the interior improvements, roof membrane, or glazing) of the building leased hereunder at
Landlord’s cost, however, Landlord shall amortize the cost of the repair over the useful life of said repair, and Tenant shall be responsible for paying to Landlord, within thirty days of written notice from Landlord, one hundred percent
(100%) of Tenant’s pro rata share of the amortization of said cost over the full Term remaining in the Lease at the time the repair and/or replacement is made; provided Tenant has not caused such damage, in which event Tenant shall be
responsible for 100 percent of any such costs and expense for repair and/or replacement or damage so caused by the Tenant and shall pay such amount to Landlord within thirty (30) days of the invoice date. For Example: In the event (i) the
roof structure is repaired at a cost of $10,000, and (ii) said repair has a useful life of twenty years, and (iii) Tenant has one year remaining in its Lease Term at the time said repair was made, Tenant would be charged its prorata share
of $500 ($10,000 / 20 years x 1 year = $500) as Additional Rent, in which case said amount would be due within thirty (30) days of notice from Landlord. Tenant hereby waives all rights under, and benefits of subsection I of Section 1932
and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. Notwithstanding the foregoing, a crack in the foundation or exterior walls, or any other defect in the Building that
does not endanger the structural integrity of the building for which Tenant is or is not responsible, or which is not life-threatening, shall not be considered material, and Landlord may elect, in its sole and absolute discretion, not to repair
and/or replace the same; however, Landlord may require Tenant to repair and/or replace the same at Tenant’s sole cost and expense, within thirty days of written notice from Landlord, if Tenant is responsible. 
 In the event the Term of the Lease is extended for any reason whatsoever, Tenant’s pro rata share of the earlier repair and/or replacement cost shall be increased
to include the additional amount payable to Landlord due to the Extended Term of the Lease. For Example: In the event: (i) the roof structure was repaired as illustrated above; and (ii) this Lease is extended for an additional five year
period, Tenant would be liable for an additional payment to Landlord of $2,500 as Additional Rent. Said payment would be due in full immediately upon Tenant’s execution of a Lease Amendment memorializing the extension of the Lease Term.

 11. EXPENSES OF OPERATION, MANAGEMENT, AND MAINTENANCE OF THE COMMON AREAS OF THE PARCEL AND BUILDING IN WHICH THE PREMISES ARE
LOCATED. As Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant shall pay to Landlord Tenant’s Proportionate Share of all expenses of operation, management, maintenance and repair of the Common Areas of the Parcel
including, but not limited to, license, permit, and inspection fees; security; utility charges associated with exterior landscaping and lighting (including water and sewer charges); all charges incurred in the maintenance and replacement of
landscaped areas, lakes, parking lots and paved areas (including repairs, replacement, resealing and restriping), sidewalks, driveways, maintenance, repair and replacement of all fixtures and electrical, mechanical and plumbing systems; supplies,
materials, equipment and tools; the cost of capital expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements, Landlord may amortize its investment in said
improvements (together with interest at the rate of fifteen (15%) percent per annum on the unamortized balance) as an operating expense in accordance with standard accounting practices, provided, that such amortization is not at a rate greater
than the anticipated savings in the operating expenses. 
 As Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant shall pay its
Proportionate Share of the cost of operation (including common utilities), management, maintenance, and repair of the building (including structural and common areas such as lobbies, restrooms, janitor’s closets, hallways, elevators, mechanical
and telephone rooms, stairwells, entrances, spaces above the ceilings and janitorization of said common areas) in which the Premises are located. The maintenance items herein referred to include, but are not limited to, all windows, window frames,
plate glass, glazing, truck doors, main plumbing systems of the building (such as water drain lines, sinks, toilets, faucets, drains, showers and water fountains), main electrical systems (such as panels and conduits), heating and air-conditioning
systems (such as compressors, fans, air handlers, ducts, boilers, heaters), structural elements and exterior 

  

					
	Multi Tenant/Single Parcel	 	Page 8 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
surfaces of the building; store fronts, roof, downspouts, building common area interiors (such as wall coverings, window coverings, floor coverings and
partitioning), ceilings, building exterior doors, skylights (if any), automatic fire extinguishing systems, and elevators (if any); license, permit and inspection fees; security, supplies, materials, equipment and tools; the cost of capital
expenditures which have the effect of reducing operating expenses, provided, however, that in the event Landlord makes such capital improvements, Landlord may amortize its investment in said improvements (together with interest at the rate of
fifteen (15%) percent per annum on the unamortized balance) as an operating expense in accordance with standard accounting practices, provided, that such amortization is not at a rate greater than the anticipated savings in the operating
expenses. Tenant hereby waives all rights hereunder, and benefits of, subsection 1 of Section 1932 and Sections 1941 and 1942 of the California Civil Code and under any similar law, statute or ordinance now or hereafter in effect. 

“Additional Rent” as used herein shall not include Landlord’s debt repayments; cost for the installation of partitioning or any other tenant
improvements for third party tenants; cost of attracting third party tenants; depreciation; interest; or executive salaries. 
 12.
UTILITIES OF THE BUILDING IN WHICH THE PREMISES ARE LOCATED. As Additional Rent and in accordance with Paragraph 4D of this Lease Tenant shall pay its Proportionate Share of the cost of all utility charges such as water, gas,
electricity, (telephone, telex and other electronic communications service, if applicable) sewer service, waste pick-up and any other utilities, materials or services furnished directly to the building in which the Premises are located, including,
without limitation, any temporary or permanent utility surcharge or other exactions whether or not hereinafter imposed. 
 Landlord shall not be liable for
and Tenant shall not be entitled to any abatement or reduction of rent by reason of any interruption or failure of utility services to the Premises when such interruption or failure is caused by accident, breakage, repair, strikes, lockouts, or
other labor disturbances or labor disputes of any nature, or by any other cause, similar or dissimilar, beyond the reasonable control of Landlord. 
 Provided that Tenant is not in default in the performance or observance of any of the terms, covenants or conditions of this Lease to be performed or observed by it, Landlord shall furnish to the Premises between the hours of 8:00 am and
6:00 pm, Mondays through Fridays (holidays excepted) and subject to the rules and regulations of the Common Area hereinbefore referred to, reasonable quantities of water, gas and electricity suitable for the intended use of the Premises and heat and
air-conditioning required in Landlord’s judgment for the comfortable use and occupation of the Premises for such purposes. Tenant agrees that at all times it will cooperate fully with Landlord and abide by all regulations and requirements that
Landlord may prescribe for the proper functioning and protection of the building heating, ventilating and air-conditioning systems. Whenever heat generating machines, equipment, or any other devices (including exhaust fans) are used in the Premises
by Tenant which affect the temperature or otherwise maintained by the air-conditioning system, Landlord shall have the right to install supplementary air-conditioning units in the Premises and the cost thereof, including the cost of installation and
the cost of operation and maintenance thereof, shall be paid by Tenant to Landlord upon demand by Landlord. Tenant will not, without the written consent of Landlord, use any apparatus or device in the Premises (including, without limitation),
electronic data processing machines or machines using current in excess of 110 Volts which will in any way increase the amount of electricity, gas, water or air-conditioning usually furnished or supplied to premises being used as general office
space, or connect with electric current (except through existing electrical outlets in the Premises), or with gas or water pipes any apparatus or device for the purposes of using electric current, gas, or water. If Tenant shall require water, gas,
or electric current in excess of that usually furnished or supplied to premises being used as general office space, Tenant shall first obtain the written consent of Landlord, which consent shall not be unreasonably withheld and Landlord may cause an
electric current, gas or water meter to be installed in the Premises in order to measure the amount of electric current, gas or water consumed for any such excess use. The cost of any such meter and of the installation, maintenance and repair
thereof, all charges for such excess water, gas and electric current consumed (as shown by such meters and at the rates then charged by the furnishing public utility); and any additional expense incurred by Landlord in keeping account of electric
current, gas, or water so consumed shall be paid by Tenant, and Tenant agrees to pay Landlord therefor promptly upon demand by Landlord. 
 13. TAXES. 
 A. As Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant shall pay to Landlord,
monthly in advance or as they become due, pursuant to statements submitted by Landlord, Tenant’s Proportionate Share of all Real Property Taxes relating to the Premises accruing with respect to the Premises during the Term of this Lease and the
Extended Term (if any). The term “Real Estate Taxes” shall also include supplemental taxes related to the period of Tenant’s Lease Term whenever levied, including any such taxes that may be levied after the Lease Term has expired. In
the event the Premises leased hereunder consist of only a portion of the entire tax parcel, Tenant shall pay to Landlord monthly in 

  

					
	Multi Tenant/Single Parcel	 	Page 9 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
advance or as they become due, pursuant to statements submitted to Tenant by Landlord, Tenant’s Proportionate Share of such real estate taxes allocated
to the Leased Premises by square footage or other reasonable basis as calculated and determined by Landlord. If the tax billing pertains 100% to the Leased Premises, and Landlord chooses to have Tenant pay said real estate taxes directly to the Tax
Collector, then in such event it shall be the responsibility of Tenant to obtain the tax and assessments bills and pay, prior to delinquency, the applicable real property taxes and assessments pertaining to the Leased Premises, and failure to
receive a bill for taxes and/or assessments shall not provide a basis for cancellation of or non-responsibility for payment of penalties for nonpayment or late payment by Tenant. 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 any general or special assessments for
public improvements and any increases resulting from reassessments caused by any change in ownership of the Premises) 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 the value, occupancy or use of, all or any portion of the Premises (as now constructed or as may at any time hereafter be constructed, altered, or otherwise
changed) or Landlord’s interest therein; any improvements located within the Premises (regardless of ownership); the fixtures, equipment and other property of Landlord, real or personal, that are an integral part of and located in the Premises;
or parking areas, public utilities, or energy within the Premises; (ii) all charges, levies or fees imposed by reason of environmental regulation or other governmental control of the Premises and (iii) all costs and fees (including
reasonable attorneys’ fees) incurred by Landlord in reasonably contesting any Real Property Tax and in negotiating with public authorities as to any Real Property Tax. If at any time during the Term of this Lease the taxation or assessment of
the Premises prevailing as of the Commencement Date of this Lease 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 alternate or additional tax or charge (i) on the value, use or occupancy of the Premises or Landlord’s interest therein or (ii) on or measured by the
gross receipts, income or rentals from the Premises, on Landlord’s business of leasing the Premises, or computed in any manner with respect to the operation of the Premises, 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 Premises, then only that part of such Real Property Tax that is fairly allocable to
the Premises 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, gift or franchise taxes of Landlord or the
federal or state net income tax imposed on Landlord’s income from all sources. 
 B. Taxes on Tenant’s Property. Tenant
shall be liable for and shall pay ten days before delinquency, taxes levied against any personal property or trade fixtures placed by Tenant in or about the Premises. If any such taxes on Tenant’s personal property or trade fixtures are levied
against Landlord or Landlord’s property or if the assessed value of the Premises is increased by the inclusion therein of a value placed upon such personal property or trade fixtures of Tenant and if Landlord, after written notice to Tenant,
pays the taxes based on such increased assessment, which Landlord shall have the right to do regardless of the validity thereof, but only under proper protest if requested by Tenant, Tenant shall within five (5) days after demand, as the case
may be, repay to Landlord the taxes so levied against Landlord, or the proportion of such taxes resulting from such increase in the assessment; provided that in any such event Tenant shall have the right, in the name of Landlord and with
Landlord’s full cooperation, to bring suit in any court of competent jurisdiction to recover the amount of such taxes so paid under protest, and any amount so recovered shall belong to Tenant. 
 14. ASSESSMENT CREDITS. The demised property herein may be subject to a special assessment levied by the City in which the Premises are
located as part of an Improvement District. As a part of said special assessment proceedings (if any), additional bonds were or may be sold and assessments were or may be levied to provide for construction contingencies and reserve funds. Interest
shall be earned on such funds created for contingencies and on reserve funds which will be credited for the benefit of said assessment district. To the extent surpluses are created in said district through unused contingency funds, interest earnings
or reserve funds, such surpluses shall be deemed the property of Landlord. Notwithstanding that such surpluses may be credited on assessments otherwise due against the Premises, Tenant shall pay to Landlord, as Additional Rent if, and at the time of
any such credit of surpluses, an amount equal to all such surpluses so credited. For example: if (i) the property is subject to an annual assessment of $1,000.00, and (ii) a surplus of $200.00 is credited towards the current year’s
assessment which reduces the assessment amount shown on the property tax bill from $1,000.00 to $800.00, Tenant shall, upon receipt of notice from Landlord, pay to Landlord said $200.00 surplus credit as Additional Rent. 
 15. LIABILITY INSURANCE. Tenant, at Tenant’s expense, agrees to keep in force during the Term of this Lease a policy of commercial
general liability insurance with combined single limit coverage 

  

					
	Multi Tenant/Single Parcel	 	Page 10 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
of not less than Two Million Dollars ($2,000,000) per occurrence for bodily injury and property damage occurring in, on or about the Premises, including
parking and landscaped areas. Such insurance shall be primary and noncontributory as respects any insurance carried by Landlord. The policy or polices effecting such insurance shall name Landlord, John Arrillaga, as Trustee under the John Arrillaga
Survivor’s Trust dated July 20, 1977, as amended; the John Arrillaga Survivor’s Trust; John Arrillaga, as an individual; and any beneficiaries, trustees and successor trustees, other partners or co-venturers of Landlord or said trusts
as additional insureds (collectively “Landlord Entities”), and shall insure any liability of Landlord, contingent or otherwise, as respects acts or omissions of Tenant, its agents, employees or invitees or otherwise by any conduct or
transactions of any of said persons in or about or concerning the Premises, including any failure of Tenant to observe or perform any of its obligations hereunder; shall be issued by an insurance company admitted to transact business in the State of
California; and shall provide that the insurance effected thereby shall not be canceled, except upon thirty (30) days’ prior written notice to Landlord. Tenant’s insurance shall be primary as respects to the Landlord Entities, or if
excess, shall stand in an unbroken chain of coverage. In either event, any other insurance maintained by the Landlord Entities shall be in excess of Tenant’s insurance and shall not be called upon to contribute with any insurance required to be
provided by Tenant. The required insurance shall be reflected on a certificate of insurance of said policy, which certificate shall be delivered to Landlord concurrently with Tenant’s return of this executed Lease to Landlord. If, during
the Term of this Lease, in the considered opinion of Landlord’s Lender, insurance advisor, or counsel, the amount of insurance described in this Paragraph 15 is not adequate, Tenant agrees to increase said coverage to such reasonable amount as
Landlord’s Lender, insurance advisor, or counsel shall deem adequate. 
 16. TENANT’S PERSONAL PROPERTY INSURANCE AND
WORKMAN’S COMPENSATION INSURANCE. Tenant shall maintain a policy or policies of fire and property damage insurance in “ Special Form” with a sprinkler leakage endorsement insuring the personal property, inventory, trade
fixtures, and leasehold improvements within the Leased Premises for the full replacement value thereof. The proceeds from any of such policies shall be used for the repair or replacement of such items so insured. 
 Tenant shall also maintain a policy or policies of workman’s compensation insurance and any other employee benefit insurance sufficient to comply
with all laws. 
 17. PROPERTY INSURANCE. Landlord shall purchase and keep in force, and as Additional Rent and in accordance
with Paragraph 4D of this Lease, Tenant shall pay to Landlord (or Landlord’s agent if so directed by Landlord) Tenant’s Proportionate Share (allocated to the Leased Premises by square footage or other equitable basis as calculated and
determined by Landlord) of the deductibles on insurance claims and the cost of, policy or policies of insurance covering loss or damage to and/or destruction of the Premises (excluding routine maintenance and repairs and incidental damage or
destruction caused by accidents or vandalism for which Tenant is responsible under Paragraph 10) in the amount of the full replacement value thereof, providing protection against those perils included within the classification of “all
risks” insurance and flood and/or earthquake insurance, if available, plus a policy of rental income insurance in the amount of one hundred (100%) percent of twelve (12) months Basic Rent, plus sums paid as Additional Rent. If such
insurance cost is increased due to Tenant’s use of the Premises, Tenant agrees to pay to Landlord the full cost of such increase. Tenant shall have no interest in nor any right to the proceeds of any insurance procured by Landlord for the
Premises. 
 In addition and notwithstanding anything to the contrary in this Paragraph 17, each party to this Lease hereby waives all rights
of recovery against the other party or its officer, employees, agents and representatives for loss or damage to its property or the property of others under its control, arising from any cause insured against under the fire and extended coverage
(excluding, however, any loss resulting from Hazardous Material contamination of the Property) required to be maintained by the terms of this Lease Agreement to the extent full reimbursement of the loss/claim is received by the insured party. Each
party required to carry property insurance hereunder shall cause the policy evidencing such insurance to include a provision permitting such release of liability (“waiver of subrogation endorsement”) provided, however, that if the
insurance policy of either releasing party prohibits such waiver, then this waiver shall not take effect until consent to such waiver is obtained; provided, however, that if the insurance policy of either releasing party prohibits such waiver, then
this waiver shall not take effect until consent to such waiver is obtained. If such waiver is so prohibited, the insured party affected shall promptly notify the other party thereof. In the event the waivers are issued to the parties and are not
valid under current policies and/or subsequent insurance policies, the non-complying party will provide, to the other party, 30 days advance notification of the cancellation of the subrogation waiver, in which case neither party will provide such
subrogation waiver thereafter and this Paragraph will be null and void. The foregoing waiver of subrogation shall not include any loss resulting from Hazardous Material contamination of the Property or any insurance coverage relating thereto.

  

					
	Multi Tenant/Single Parcel	 	Page 11 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 18. INDEMNIFICATION. Landlord shall not be liable to Tenant and Tenant hereby waives
all claims against Landlord for any injury to or death of any person or damage to or destruction of property in or about the Premises by or from any cause whatsoever, including, without limitation, gas, fire, oil, electricity or leakage of any
character from the roof, walls, basement or other portion of the Premises but excluding, however, the willful misconduct or negligence of Landlord, its agents, servants, employees, invitees or contractors of which negligence Landlord has knowledge
and reasonable time to correct. Subject to the last two sentences in Paragraph 17 and except as to injury to persons or damage to property to the extent arising from the willful misconduct or the negligence of Landlord, its agents, servants,
employees, invitees, or contractors, Tenant shall hold Landlord harmless from and defend Landlord against any and all expenses, including reasonable attorneys’ fees, in connection therewith, arising out of any injury to or death of any person
or damage to or destruction of property occurring in, on or about the Premises, or any part thereof, from any cause whatsoever, accruing and/or occurring during the Term of this Lease. 
 19. COMPLIANCE. 
 A. Tenant, at
its sole cost and expense, shall promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now or hereafter in effect which regulate Tenant’s use of the Premises; with the requirements of any board
of fire underwriters or other similar body now or hereafter constituted; and with any direction or occupancy certificate issued pursuant to law by any public officer; provided, however, that no such failure shall be deemed a breach of the provisions
if Tenant, immediately upon notification, commences to remedy or rectify said failure. The judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party thereto or not, that
Tenant has violated any such law, statute, ordinance or governmental rule, regulation, requirement, direction or provision, shall be conclusive of that fact as between Landlord and Tenant. Tenant shall, at its sole cost and expense, comply with any
and all requirements pertaining to said Premises, of any insurance organization or company, necessary for the maintenance of reasonable fire and public liability insurance covering requirements pertaining to said Premises. The provisions of this
Paragraph 19 shall survive the expiration or termination of this Lease 
 B. Notwithstanding anything to the contrary in Paragraph 19.A
above, any non-conformance of the improvements installed and paid for by Landlord as set forth on Exhibit B, required to be corrected by the governing agency, shall be corrected at the cost and expense of Landlord if such non-conformance
exists as of the Commencement Date of the Lease and further provided that such governing agency’s requirement to correct the non-conformance is not initiated as a result of: (i) any current and/or future improvements made by or for Tenant;
or (ii) any permit request made to a governing agency by or for Tenant. Any non-conformance of the Premises occurring after the Commencement Date of this Lease Agreement shall be the responsibility of Tenant to correct at Tenant’s cost and
expense. 
 20. LIENS. Tenant shall keep the Premises free from any liens arising out of any work performed, materials
furnished or obligation incurred by Tenant. In the event that Tenant shall not, within ten (10) days following notice of the imposition of such lien, cause the same to be released of record, Landlord shall have, in addition to all other
remedies provided herein and by law, the right, but no obligation, to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien. All sums paid by Landlord for such purpose, and all
expenses incurred by it in connection therewith, shall be payable to Landlord by Tenant on demand with interest at the higher of the (i) prime rate of interest as quote by the Bank of America or (ii) Landlord’s borrowing rate (the
“Interest Rate”). 
 21. ASSIGNMENT AND SUBLETTING. 
 A. Tenant shall not assign, transfer, or hypothecate the leasehold estate under this Lease, or any interest therein, and shall not sublet the Premises, or
any part thereof, or any right or privilege appurtenant thereto, or suffer any other person or entity to occupy or use the Premises, or any portion thereof, without, in each case, the prior written consent of Landlord which consent will not be
unreasonably withheld. As a condition for granting this consent to any assignment, transfer, or subletting, Landlord shall require that (i) the sublease be a triple net sublease and that the basic rent due under any such sublease be no
less than the then current market rent with annual increases at the then prevailing market rent, (ii) that the sublease shall not provide for subtenant to have an option to extend the term of the sublease or an option to expand the sublet
space, and (iii) Tenant pay Landlord monthly throughout the term of any approved sublease, as Additional Rent (and therefore subject to the terms of Paragraph 4.C (“Late Charge”) and Paragraph 24 (“Bankruptcy and Default”),
all rents and/or additional consideration due Tenant from its assignees, transferees, or subtenants in excess of the Rent payable by Tenant to Landlord hereunder for the assigned, transferred and/or subleased space (“Excess Rent”). Tenant
shall, by thirty (30) days written notice, advise Landlord of its intent to assign or transfer Tenant’s interest in the 

  

					
	Multi Tenant/Single Parcel	 	Page 12 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
Lease or sublet the Premises or any portion thereof for any part of the Term hereof. Within thirty (30) days after receipt of said written notice,
Landlord may, in its sole discretion, elect to terminate this Lease as to the portion of the Premises described in Tenant’s notice on the date specified in Tenant’s notice by giving written notice of such election to terminate. If no such
notice to terminate is given to Tenant within said thirty (30) day period, Tenant may proceed to locate an acceptable sublessee, assignee, or other transferee for presentment to Landlord for Landlord’s approval, all in accordance with the
terms, covenants, and conditions of this Paragraph 21. If Tenant intends to sublet the entire Premises and Landlord elects to terminate this Lease, this Lease shall be terminated on the date specified in Tenant’s notice. If, however, this Lease
shall terminate pursuant to the foregoing with respect to less than all the Premises, the Rent, as defined and reserved hereinabove shall be adjusted on a pro rata basis to the number of square feet retained by Tenant, and this Lease as so amended
shall continue in full force and effect. In the event Tenant is allowed to assign, transfer or sublet the whole or any part of the Premises, with the prior written consent of Landlord, no assignee, transferee or subtenant shall assign or transfer
this Lease, either in whole or in part, or sublet the whole or any part of the Premises, without also having obtained the prior written consent of Landlord. Notwithstanding the above, in no event shall Landlord consent to a sub-sublease. A
consent of Landlord to one assignment, transfer, hypothecation, subletting, occupation or use by any other person shall not release Tenant from any of Tenant’s obligations hereunder or be deemed to be a consent to any subsequent similar or
dissimilar assignment, transfer, hypothecation, subletting, occupation or use by any other person. Any such assignment, transfer, hypothecation, subletting, occupation or use without such consent shall be void and shall constitute a breach of this
Lease by Tenant and shall, at the option of Landlord exercised by written notice to Tenant, terminate this Lease. The leasehold estate under this Lease shall not, nor shall any interest therein, be assignable for any purpose by operation of law
without the written consent of Landlord. As a condition to its consent, Landlord shall require Tenant to pay all expenses in connection with any and all subleases and/or assignments and/or any amendments related thereto, including but not limited to
Landlord’s fees for the processing and administration of the consent documentation and Landlord’s attorneys’ fees (if any), and Landlord shall require Tenant’s subtenant, assignee or transferee (or other assignees or transferees)
to assume in writing all of the obligations under this Lease and for Tenant to remain liable to Landlord under the Lease. 
 B.
Notwithstanding the foregoing, Landlord and Tenant agree that it shall not be unreasonable for Landlord to refuse to consent to a proposed assignment, sublease or other transfer (“Proposed Transfer”) if the Premises or any other portion of
the Property would become subject to additional or different Government Requirements as a direct or indirect consequence of the Proposed Transfer and/or the Proposed Transferee’s use and occupancy of the Premises and the Property. However,
Landlord may, in its sole discretion, consent to such a Proposed Transfer where Landlord is indemnified by Tenant and (i) Subtenant or (ii) Assignee, in form and substance satisfactory to Landlord’s counsel, by Tenant and/or Proposed
Transferee from and against any and all costs, expenses, obligations and liability arising out of the Proposed Transfer and/or the Proposed Transferee’s use and occupancy of the Premises and the Property. 
 C. Any and all sublease agreement(s) between Tenant and any and all subtenant(s) (which agreements must be consented to by Landlord, pursuant to the
requirements of this Lease) shall contain the following language: 
 “If Landlord and Tenant jointly and voluntarily
elect, for any reason whatsoever, to terminate the Master Lease prior to the scheduled Master Lease termination date, then, if Landlord so elects, this Sublease (if then still in effect) shall terminate concurrently with the termination of the
Master Lease. Subtenant expressly acknowledges and agrees that (1) the voluntary termination of the Master Lease by Landlord and Tenant and the resulting termination of this Sublease shall not give Subtenant any right or power to make any legal
or equitable claim against Landlord, including without limitation any claim for interference with contract or interference with prospective economic advantage, and (2) Subtenant hereby waives any and all rights it may have under law or at
equity against Landlord to challenge such an early termination of the Sublease, and unconditionally releases and relieves Landlord, and its officers, directors, employees and agents, from any and all claims, demands, and/or causes of action
whatsoever (collectively, “Claims”), whether such matters are known or unknown, latent or apparent, suspected or unsuspected, foreseeable or unforeseeable, which Subtenant may have arising out of or in connection with any such early
termination of this Sublease. Subtenant knowingly and intentionally waives any and all protection which is or may be given by Section 1542 of the California Civil Code which provides as follows: “A general release does not extend to claims
which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with debtor. 
  

					
	Multi Tenant/Single Parcel	 	Page 13 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 The term of this Sublease is therefore subject to early termination. Subtenant’s
initials here below evidence (a) Subtenant’s consideration of and agreement to this early termination provision, (b) Subtenant’s acknowledgment that, in determining the net benefits to be derived by Subtenant under the terms of
this Sublease, Subtenant has anticipated the potential for early termination, and (c) Subtenant’s agreement to the general waiver and release of Claims above. 
  

			
	 Initials:                 
	 	Initials:                 ”
	               Subtenant
	 	              Tenant

 22. SUBORDINATION AND MORTGAGES. In the event Landlord’s title or leasehold
interest is now or hereafter encumbered by a deed of trust, upon the interest of Landlord in the land and buildings in which the demised Premises are located, to secure a loan from a lender (hereinafter referred to as “Lender”) to
Landlord, Tenant shall, at the request of Landlord or Lender, execute in writing an agreement (in form reasonably acceptable to Tenant), subordinating its rights under this Lease to the lien of such deed of trust, or, if so requested, agreeing that
the lien of Lender’s deed of trust shall be or remain subject and subordinate to the rights of Tenant under this Lease. Notwithstanding any such subordination, Tenant’s possession under this Lease shall not be disturbed if Tenant is not in
default and so long as Tenant shall pay all Rent and observe and perform all of the provisions set forth in this Lease and any subordination agreement shall reflect the agreement of the Lender to the same. 
 Provided Tenant is not in default in the terms of this Lease, this Lease shall not be subordinate to a mortgage or deed of trust unless the Lender
holding such mortgage or deed of trust enters into a written subordination, non-disturbance and attornment agreement in which the Lender agrees that notwithstanding any subordination of this Lease to such Lender’s mortgage or deed of trust,
(i) such Lender shall recognize all of Tenant’s rights under this Lease, and (ii) in the event of a foreclosure, this Lease shall not be terminated so long as Tenant is not in default of its obligations under this Lease, but shall
continue in effect and Tenant and such Lender (or any party acquiring the Premises through such foreclosure) shall each be bound to perform the respective obligations of Tenant and Landlord with respect to the Premises arising after such
foreclosure. 
 23. ENTRY BY LANDLORD. Landlord reserves, and shall at all reasonable times after at least twenty four
(24) hours notice (except in emergencies) have the right to enter the Premises to inspect them; to perform any services to be provided by Landlord hereunder; to make repairs or provide any services to a contiguous tenant(s) (if any); to submit
the Premises to prospective purchasers, mortgagers or tenants; to post notices of non-responsibility; and to alter, improve or repair the Premises or other parts of the building, all without abatement of Rent, and may erect scaffolding and other
necessary structures in or through the Premises where reasonably required by the character of the work to be performed; provided, however that the business of Tenant shall be interfered with to the least extent that is reasonably practical. Landlord
agrees to comply with any reasonable safety and/or security regulations imposed by Tenant with respect to such entry, and shall only enter the Premises when accompanied by Tenant or its agent (so long as Tenant makes itself reasonably available for
this purpose). Landlord may install “for lease” signs related to the Premises only during the last 180 days of the Lease Term. Landlord shall also have the right at any time to change the arrangement or location of entrances or
passageways, doors and doorways, and corridors, elevators, stairs, toilets or other public parts of the Property and to change the name, number or designation by which the Property is commonly known, and none of the foregoing shall be deemed an
actual or constructive eviction of Tenant, or shall entitle Tenant to any reduction of Rent hereunder. Tenant agrees to cooperate with Landlord and Landlord’s agents, employees and contractors so that the responsibilities of Landlord under the
Lease can be fulfilled in a reasonable manner during normal business hours so that no extraordinary costs are incurred by Landlord. Any entry to the Premises by Landlord for the purposes provided for herein shall not under any circumstances be
construed or deemed to be a forcible or unlawful entry into or a detainer of the Premises or an eviction, actual or constructive, of Tenant from the Premises or any portion thereof. 
 24. BANKRUPTCY AND DEFAULT. The commencement of a bankruptcy action or liquidation action or reorganization action or insolvency action or
an assignment of or by Tenant for the benefit of creditors, or any similar action undertaken by Tenant, or the insolvency of Tenant, shall, at Landlord’s option, constitute a breach of this Lease by Tenant. If the trustee or receiver appointed
to serve during a bankruptcy, liquidation, reorganization, insolvency or similar action elects to reject Tenant’s unexpired Lease, the trustee or receiver shall notify Landlord in writing of its election within thirty (30 days after an order
for relief in a liquidation action or within thirty (30) days after the commencement of any action. 
  

					
	Multi Tenant/Single Parcel	 	Page 14 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 Within thirty (30) days after the court approval of the assumption of this Lease, the trustee or
receiver shall cure (or provide adequate assurance to the reasonable satisfaction of Landlord that the trustee or receiver shall cure) any and all previous defaults under the unexpired Lease and shall compensate Landlord for all actual pecuniary
loss and shall provide adequate assurance of future performance under said Lease to the reasonable satisfaction of Landlord. Adequate assurance of future performance, as used herein, includes, but shall not be limited to: (i) assurance of
source and payment of Rent, and other consideration due under this Lease; (ii) assurance that the assumption or assignment of this Lease will not breach substantially any provision, such as radius, location, use, or exclusivity provision, in
any agreement relating to the above described Premises. 
 Nothing contained in this section shall affect the existing right of Landlord to
refuse to accept an assignment upon commencement of or in connection with a bankruptcy, liquidation, reorganization or insolvency action or an assignment of Tenant for the benefit of creditors or other similar act. Nothing contained in this Lease
shall be construed as giving or granting or creating an equity in the demised Premises to Tenant. In no event shall the leasehold estate under this Lease, or any interest therein, be assigned by voluntary or involuntary bankruptcy proceeding without
the prior written consent of Landlord. In no event shall this Lease or any rights or privileges hereunder be an asset of Tenant under any bankruptcy, insolvency or reorganization proceedings. 
 The failure to perform or honor any covenant, condition or representation made under this Lease shall constitute a default under this Lease by Tenant
upon expiration of the appropriate grace period hereinafter provided. Tenant shall have a period of five (5) days from the date of written notice from Landlord within which to cure any default in the payment of Rent or adjustment thereto.
Tenant shall have a period of thirty (30) days from the date of written notice from Landlord within which to cure any other non-monetary default under this Lease; provided, however, that with respect to non-monetary defaults not involving
Tenant’s failure to pay Basic Rent or Additional Rent, Tenant shall not be in default if (i) more than thirty (30) days is required to cure such non-monetary default and (ii) Tenant commences cure of such default as soon as
reasonably practicable after receiving written notice of such default from Landlord and thereafter continuously and with due diligence prosecutes such cure to completion. Upon an uncured default of this Lease by Tenant, Landlord shall have the
following rights and remedies in addition to any other rights or remedies available to Landlord at law or in equity: 
 (a) The rights and
remedies provided for by California Civil Code Section 1951.2 including but not limited to, recovery of the worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount
of rental loss for the same period that Tenant proves could be reasonably avoided, as computed pursuant to subsection (b) of said Section 1951.2. Any proof by Tenant under subparagraphs (2) and (3) of Section 1951.2 of the
California Civil Code of the amount of rental loss that could be reasonably avoided shall be made in the following manner: Landlord and Tenant shall each select a licensed real estate broker in the business of renting property of the same type and
use as the Premises and in the same geographic vicinity. Such two real estate brokers shall select a third licensed real estate broker, and the three licensed real estate brokers so selected shall determine the amount of the Rent loss that could be
reasonably avoided from the balance of the Term of this Lease after the time of award. The decision of the majority of said licensed real estate brokers shall be final and binding upon the parties hereto. As part of such damages, Landlord shall have
the right to recover that portion of any leasing commission paid by Landlord in connection with this Lease applicable to the unexpired Term of this Lease. 
 (b) The rights and remedies provided by California Civil Code Section which allows Landlord to continue the Lease in effect and to enforce all of its rights and remedies under this Lease, including the right to
recover Rent as it becomes due, for so long as Landlord does not terminate Tenant’s right to possession; acts of maintenance or preservation, efforts to relet the Premises, or the appointment of a receiver upon Landlord’s initiative to
protect its interest under this Lease shall not constitute a termination of Tenant’s right to possession. 
 (c) The right to terminate
this Lease by giving notice to Tenant in accordance with applicable law. 
 (d) To the extent permitted by law, the right and power to enter
the Premises and remove therefrom all persons and property, to store such property in a public warehouse or elsewhere at the cost of and for the account of Tenant, and to sell such property and apply such proceeds therefrom pursuant to applicable
California law. Landlord may from time to time sublet the Premises or any part thereof for such term or terms (which may extend beyond the Term of this Lease) and at such Rent and such other terms as Landlord in its reasonable sole discretion may
deem advisable, with the right to make alterations and repairs to the Premises. Upon each subletting, (i) Tenant shall be immediately liable to pay Landlord, in addition to indebtedness other than Rent due hereunder, the reasonable cost of such
subletting, including, but not limited to, reasonable attorneys’ fees, and any real estate commissions actually paid, and the cost of 

  

					
	Multi Tenant/Single Parcel	 	Page 15 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
such reasonable alterations and repairs incurred by Landlord and the amount, if any, by which the Rent hereunder for the period of such subletting (to the
extent such period does not exceed the Term hereof) exceeds the amount to be paid as Rent for the Premises for such period or (ii) at the option of Landlord, rents received from such subletting shall be applied first to payment of indebtedness
other than Rent due hereunder from Tenant to Landlord; second, to the payment of any costs of such subletting and of such alterations and repairs; third, to payment of Rent due and unpaid hereunder; and the residue, if any, shall be held by Landlord
and applied in payment of future Rent as the same becomes due hereunder. If Tenant has been credited with any Rent to be received by such subletting under option (i) and such Rent shall not be promptly paid to Landlord by the subtenant(s), or
if such rentals received from such subletting under option (ii) during any month be less than that to be paid during the month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid
monthly. No taking possession of the Premises by Landlord shall be construed as an election on its part to terminate this Lease unless a written notice of such intention be given to Tenant. Notwithstanding any such subletting without termination,
Landlord may at any time hereafter elect to terminate this Lease for such previous breach. 
 (e) The right to have a receiver appointed for
Tenant upon application by Landlord, to take possession of the Premises and to apply any rental collected from the Premises and to exercise all other rights and remedies granted to Landlord pursuant to subparagraph (e) above. 
 25. ABANDONMENT. Tenant shall not vacate or abandon the Premises at any time during the Term of this Lease and if Tenant shall abandon,
vacate or surrender said Premises, or be dispossessed by the process of law, or otherwise, any personal property belonging to Tenant and left on the Premises shall be deemed to be abandoned, at the option of Landlord, except such property as may be
mortgaged to Landlord. Notwithstanding the above, Tenant shall not be in default under the Lease if it leaves all or any part of Premises vacant so long as (i) Tenant is performing all of its other obligations under the Lease including the
obligation to pay Rent (ii) Tenant provides on-site security during normal business hours for those parts of the Premises left vacant, (iii) such vacancy does not materially and adversely affect the validity or coverage of any policy of
insurance carried by Landlord with respect to the Premises, and (iv) the utilities and heating and ventilation systems are operated and maintained to the extent necessary to prevent damage to the Premises or its systems. 
 26. DESTRUCTION. In the event the Premises are destroyed in whole or in part from any cause, except for routine maintenance and repairs and
incidental damage and destruction caused from vandalism and accidents for which Tenant is responsible under Paragraph 10, Landlord may, at its option: 
 (a) Rebuild or restore the Premises to their condition prior to the damage or destruction, or 
 (b)
Terminate this Lease (providing that the Premises is damaged to the extent of 33 1/3% or more of the replacement cost, exclusive of footings, foundations and floor slabs). 
 If Landlord does not give Tenant notice in writing within thirty (30) days from the destruction of the Premises of its election to either rebuild
and restore them, or to terminate this Lease, Landlord shall be deemed to have elected to rebuild or restore them, in which event Landlord agrees, at its expense except for any deductible, which is the responsibility of the Tenant, promptly to
rebuild or restore the Premises to their condition prior to the damage or destruction. Tenant shall be entitled to a reduction in Rent from the date of such damage or destruction, provided Tenant is not using any portion of such damaged area, while
such repair is being made in the proportion that the area of the Premises rendered untenantable by such damage bears to the total area of the Premises. If Landlord initially estimates that the rebuilding or restoration will exceed 180 days or if
Landlord does not complete the rebuilding or restoration within one hundred eighty (180) days following the date of destruction (such period of time to be extended for delays caused by the fault or neglect of Tenant or because of Acts of God,
acts of public agencies, labor disputes, strikes, fires, freight embargos, rainy or stormy weather, inability to obtain materials, supplies or fuels, acts of contractors or subcontractors, or delay of the contractors or subcontractors due to such
causes or other contingencies beyond the control of Landlord), then Tenant shall have the right to terminate this Lease by giving written notice to Landlord within five days following the date Tenant receives Landlord’s written notice stating
that the restoration will exceed 180 days. Regardless of whether Landlord and/or Tenant elects to terminate the Lease early as provided herein, Tenant shall remain liable for the insurance deductible as it relates to the Leased Premises.
Notwithstanding anything herein to the contrary, Landlord’s obligation to rebuild or restore shall be limited to the building and interior improvements constructed by Landlord as they existed as of the Commencement Date of the Lease and shall
not include restoration of Tenant’s trade fixtures, equipment, merchandise, or any improvements, alterations or additions made by Tenant to the Premises, which Tenant shall forthwith replace or fully repair at Tenant’s sole cost and
expense provided this Lease is not canceled according to the provisions above. 
  

					
	Multi Tenant/Single Parcel	 	Page 16 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 Unless this Lease is terminated pursuant to the foregoing provisions, this Lease shall remain in full
force and effect. Tenant hereby expressly waives the provision of Section 1932, Subdivision 2, in Section 1933, Subdivision 4 of the California Civil Code. 
 In any event that the building in which the Premises are situated is damaged or destroyed to the extent of not less than 33 1/3% of the replacement cost thereof, Landlord may elect to terminate this Lease, whether the
Premises be injured or not. Notwithstanding anything to the contrary herein, Landlord may terminate this lease in the event of an uninsured event or if insurance proceeds are insufficient to cover one hundred percent of the rebuilding costs net of
the deductible. 
 Without regard to whether this Lease is terminated pursuant to the foregoing, Tenant, upon demand by Landlord, shall pay
to Landlord the deductibles from any casualty policy Landlord carries pursuant to Paragraph 17 (“Property Insurance”). 
 27.
EMINENT DOMAIN. If all or any part of the Premises shall be taken by any public or quasi-public authority under the power of eminent domain or conveyance in lieu thereof, this Lease shall terminate as to any portion of the Premises so
taken or conveyed on the date when title vests in the condemnor, and Landlord shall be entitled to any and all payment, income, rent, award, or any interest therein whatsoever which may be paid or made in connection with such taking or conveyance,
and Tenant shall have no claim against Landlord or otherwise for the value of any unexpired Term of this Lease. Notwithstanding the foregoing sentence, any compensation specifically awarded Tenant for loss of business, Tenant’s personal
property, moving costs or loss of goodwill, shall be and remain the property of Tenant. 
 If any action or proceeding is commenced for such
taking of the Premises or any part thereof, or if Landlord is advised in writing by any entity or body having the right or power of condemnation of its intention to condemn the Premises or any part thereof, then Landlord shall have the right to
terminate this Lease by giving Tenant written notice thereof within sixty (60) days of the date of receipt of said written advice, or commencement of said action or proceeding, or taking conveyance, which termination shall take place as of the
first to occur of the last day of the calendar month next following the month in which such notice is given or the date on which title to the Premises shall vest in the condemnor. 
 In the event of such a partial taking or conveyance of the Premises, if the portion of the Premises taken or conveyed is so substantial that the Tenant
can no longer reasonably conduct its business, Tenant shall have the privilege of terminating this Lease within sixty (60) days from the date of such taking or conveyance, upon written notice to the Landlord of its intention so to do, and upon
giving of such notice this Lease shall terminate on the last day of the calendar month next following the month in which such notice is given, upon payment by Tenant of the Rent from the date of such taking or conveyance to the date of termination.

 If a portion of the Premises be taken by condemnation or conveyance in lieu thereof and neither Landlord nor Tenant shall terminate this
Lease as provided herein, this Lease shall continue in full force and effect as to the part of the Premises not so taken or conveyed, and the Rent herein shall be apportioned as of the date of such taking or conveyance so that thereafter the Rent to
be paid by Tenant shall be in the ratio that the area of the portion of the Premises not so taken or conveyed bears to the total area of the Premises prior to such taking. 
 28. SALE OR CONVEYANCE BY LANDLORD. In the event of a sale or conveyance of the Premises or any interest therein, by any owner of the
reversion then constituting Landlord, the transferor shall thereby be released from any further liability upon any of the terms, covenants or conditions (express or implied) herein contained in favor of Tenant, and in such event, insofar as such
transfer is concerned, Tenant agrees to look solely to the responsibility of the successor in interest of such transferor in and to the Premises and this Lease. This Lease shall not be affected by any such sale or conveyance, and Tenant agrees to
attorn to the successor in interest of such transferor. 
 Upon any sale or transfer, (i) Landlord shall not be released from any then
outstanding liability arising under this Lease during the period preceding the date of transfer, and (ii) Landlord shall not be relieved of the obligations under the Lease which may accrue after the date of a sale or other transfer unless the
transferee agrees in writing to assume and be bound by the terms of this Lease and to perform all obligations of the Landlord under the Lease which may accrue after the date of such transfer. 
 29. ATTORNMENT TO LENDER OR THIRD PARTY. In the event the interest of Landlord in the land and buildings in which the Leased Premises are
located (whether such interest of Landlord is a fee title interest or a leasehold interest) is encumbered by deed of trust, and such interest is acquired by the lender or any third party through judicial foreclosure or by exercise of a power of sale
at private trustee’s foreclosure sale, Tenant hereby agrees to attorn to the purchaser at any such judicial foreclosure or 

  

					
	Multi Tenant/Single Parcel	 	Page 17 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
foreclosure sale and to recognize such purchaser as the Landlord under this Lease. In the event the lien of the deed of trust securing the loan from a Lender
to Landlord is prior and paramount to the Lease, this Lease shall nonetheless continue in full force and effect for the remainder of the unexpired Term hereof, at the same rental herein reserved and upon all the other terms, conditions and covenants
herein contained. 
 30. HOLDING OVER. Any holding over by Tenant after expiration or other termination of the Term of this
Lease with the written consent of Landlord delivered to Tenant shall not constitute a renewal or extension of the Lease or give Tenant any rights in or to the Leased Premises except as expressly provided in this Lease. Any holding over after the
expiration or other termination of the Term of this Lease, with the 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 the monthly Basic
Rent shall be increased to an amount equal to two hundred (200%) percent of the monthly Basic Rent required during the last month of the Lease term; provided, however, that the monthly Rent shall be prorated based on the actual number of days
in the month for any partial month of the holding over. 
 31. CERTIFICATE OF ESTOPPEL. Tenant shall at any time within ten
(10) days of receipt of notice from Landlord execute, acknowledge and deliver to Landlord a statement in writing (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) and the date to which the Rent and other charges are paid in advance, if any, and (ii) acknowledging that there are not, to Tenant’s knowledge, any
uncured defaults on the part of Landlord hereunder, or specifying such defaults, if any, are claimed. Any such statement may be conclusively relied upon by any prospective purchaser or encumbrancer of the Premises. 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 one month’s Rent has been paid in advance. 
 32. CONSTRUCTION CHANGES. It is understood that the
description of the Premises and the location of ductwork, plumbing and other facilities therein are subject to such minor changes as Landlord or Landlord’s architect determines to be desirable in the course of construction of the Premises, and
no such changes shall affect this Lease or entitle Tenant to any reduction of Rent hereunder or result in any liability of Landlord to Tenant. Landlord does not guarantee the accuracy of any drawings supplied to Tenant and verification of the
accuracy of such drawings rests with Tenant. 
 33. RIGHT OF LANDLORD TO PERFORM. All terms, covenants and conditions of this
Lease to be performed or observed by Tenant shall be performed or observed by Tenant at Tenant’s sole cost and expense and without any reduction of rent. If Tenant shall fail to pay any sum of money, or other Rent, required to be paid by it
hereunder and such failure shall continue for five (5) days after written notice thereof by Landlord or shall fail to perform any other term of covenant hereunder on its part to be performed, and such failure shall continue for thirty
(30) days after written notice thereof by Landlord (or such longer grace period as shall be provided under Paragraph 24), Landlord, without waiving or releasing Tenant from any obligation of Tenant hereunder, may, but shall not be obliged to,
make any such payment or perform any such other term or covenant on Tenant’s part to be performed. All sums so paid by Landlord and all necessary costs of such performance by Landlord together with interest thereon at the rate of the prime rate
of interest per annum as quoted by the Bank of America from the date of such payment or performance by Landlord, shall be paid (and Tenant covenants to make such payment) to Landlord within five (5) business days after demand by Landlord, and
Landlord shall have (in addition to any other right or remedy of Landlord) the same rights and remedies in the event of nonpayment by Tenant as in the case of failure by Tenant in the payment of Rent hereunder. 
 34. ATTORNEYS’ FEES. 
 A.
In the event that Landlord should bring suit for the possession of the Premises, for the recovery of any sum due under this Lease, or because of the breach of any provision of this Lease, or for any other relief against Tenant hereunder, then all
costs and expenses, including reasonable attorneys’ fees, incurred by Landlord therein shall be paid by Tenant, which obligation on the part of Tenant shall be deemed to have accrued on the date of the commencement of such action and shall be
enforceable whether or not the action is prosecuted to judgment. 
 B. Should Landlord be named as a defendant in any suit brought against
Tenant in connection with or arising out of Tenant’s occupancy hereunder, Tenant shall pay to Landlord its costs and expenses incurred in such suit, including reasonable attorney’s fees. 
 C. Any deposition of Landlord and/or its agents, whether initiated by Landlord or Tenant, shall be administered and taken at Landlord’s place of
business. 
  

					
	Multi Tenant/Single Parcel	 	Page 18 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 35. WAIVER. The waiver by either party of the other party’s failure to perform or
observe any term, covenant or condition herein contained to be performed or observed by such waiving party shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent failure of the party failing to perform or observe
the same or any other such term, covenant or condition therein contained, and no custom or practice which may develop between the parties hereto during the Term hereof shall be deemed a waiver of, or in any way affect, the right of either party to
insist upon performance and observance by the other party in strict accordance with the terms hereof. 
 36. NOTICES. All
notices, demands, requests, advices or designations which may be or are required to be given by either party to the other hereunder shall be in writing. All notices, demands, requests, advices or designations by Landlord to Tenant shall be
sufficiently given, made or delivered if personally served on Tenant by leaving the same at the Premises or if sent by United States certified or registered mail, postage prepaid or by a reputable commercial carrier’s same day or overnight
service addressed to Tenant at the Premises. All notices, demands, requests, advices or designations by Tenant to Landlord shall be sent by United States certified or registered mail, postage prepaid, or by a reputable commercial carrier’s same
day or overnight service addressed to Landlord at its offices at: JOHN ARRILLAGA SURVIVOR’S TRUST, 2560 MISSION COLLEGE BLVD., SUITE 101, SANTA CLARA, CA 95054. Each notice, request, demand, advice or designation referred to in this
Paragraph shall be deemed received on the date of the personal service or receipt or refusal to accept receipt of the mailing thereof in the manner herein provided, as the case may be. Either party shall have the right, upon ten (10) days
written notice to the other, to change the address as noted herein; however, Landlord shall send Tenant notices to only one address of Tenant as identified above. 
 37. EXAMINATION OF LEASE. Submission of this instrument for examination or signature by Tenant does not constitute a reservation of or option for a lease, and this instrument is not effective as a lease
or otherwise until its execution and delivery by both Landlord and Tenant. 
 38. DEFAULT BY LANDLORD. Landlord shall not be in
default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event earlier than (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust
covering the Premises whose name and address shall have heretofore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligations; provided, however, that if the nature of Landlord’s obligations is such
that more than thirty (30) days are required for performance, then Landlord shall not be in default if Landlord commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion.

 39. 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 is duly authorized to execute and deliver this Lease on behalf of said corporation (or partnership) in accordance with the by-laws of said corporation (or partnership in accordance
with the partnership agreement) 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 said corporation authorizing or ratifying the specific execution of this Lease by the individual executing said Lease. In lieu of said corporate resolution, Tenant may provide
Landlord with an outside legal opinion stating that the party executing this Lease on behalf of Tenant is authorized to do so by the Board of Directors. 
 40. LIMITATION OF LIABILITY. In consideration of the benefits accruing hereunder, Tenant and all successors and assigns covenant and agree that, in the event of any actual or alleged failure, breach or
default hereunder by Landlord: 
 (a) the sole and exclusive remedy shall be against Landlord’s interest in the Premises leased herein;

 (b) no partner of Landlord shall be sued or named as a party in any suit or action (except as may be necessary to secure jurisdiction of
the partnership); 
 (c) no service of process shall be made against any partner of Landlord (except as may be necessary to secure
jurisdiction of the partnership); 
 (d) no partner of Landlord shall be required to answer or otherwise plead to any service of process;

 (e) no judgment will be taken against any partner of Landlord; 
  

					
	Multi Tenant/Single Parcel	 	Page 19 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 (f) any judgment taken against any partner of Landlord may be vacated and set aside at any time
without hearing; 
 (g) no writ of execution will ever be levied against the assets of any partner of Landlord; 
 (h) these covenants and agreements are enforceable both by Landlord and also by any partner of Landlord. 
 Tenant agrees that each of the foregoing covenants and agreements shall be applicable to any covenant or agreement either expressly contained in this
Lease or imposed by statute or at common law. 
 41. SIGNS. No sign, placard, picture, advertisement, name or notice shall be
inscribed, displayed or printed or affixed on or to any part of the outside of the Building or any exterior windows of the Building without the written consent of Landlord first had and obtained and Landlord shall have the right to remove any such
sign, placard, picture, advertisement, name or notice without notice to Tenant and at the expense of Tenant. If Tenant is allowed to print or affix or in any way place a sign in, on, or about the Premises, upon expiration or other sooner termination
of this Lease, Tenant at Tenant’s sole cost and expense shall both remove such sign and repair all damage in such a manner as to restore all aspects of the appearance of the Premises to the condition prior to the placement of said sign.

 All approved signs or lettering on outside shall be printed, painted, affixed or inscribed at the expense of Tenant by a person approved
of by Landlord. 
 Tenant shall not place anything or allow anything to be placed near the glass of any window, door partition or wall which
may appear unsightly from outside the Premises. 
 42. CONSENT. Whenever the consent of one party to the other is required
hereunder, such consent shall not be unreasonably withheld. 
 43. AUTHORITY TO EXECUTE. The parties executing this Lease
Agreement hereby warrant and represent that they are properly authorized to execute this Lease Agreement and bind the parties on behalf of whom they execute this Lease Agreement and to all of the terms, covenants and conditions of this Lease
Agreement as they relate to the respective parties hereto. 
 44. HAZARDOUS MATERIALS. Landlord and Tenant agree as follows
with respect to the existence or use of “Hazardous Materials” (as defined herein) on, in, under or about the Premises and real property located beneath said Premises and the Common Areas of the Parcel, which includes the entire parcel of
land on which the Premises are located as shown in Green on Exhibit A attached hereto (hereinafter collectively referred to as the “Property”): 
 A. As used herein, the term “Hazardous Materials” shall mean any material, waste, chemical, mixture or byproduct which is or hereafter is defined, listed or designated under Environmental Laws (defined
below) as a pollutant, or as a contaminant, or as a toxic or hazardous substance, waste or material, or any other unwholesome, hazardous, toxic, biohazardous, or radioactive material, waste, chemical, mixture or byproduct, or which is listed,
regulated or restricted by any Environmental Law (including, without limitation, petroleum hydrocarbons or any distillates or derivatives or fractions thereof, polychlorinated biphenyls, or asbestos). As used herein, the term “Environmental
Laws” shall mean any applicable Federal, State of California or local government law (including common law), statute, regulation, rule, ordinance, permit, license, order, requirement, agreement, or approval, or any determination, judgment,
directive, or order of any executive or judicial authority at any level of Federal, State of California or local government (whether now existing or subsequently adopted or promulgated) relating to pollution or the protection of the environment,
ecology, natural resources, or public health and safety. 
 B. Tenant shall obtain Landlord’s written consent, which may be withheld in
Landlord’s discretion, prior to the occurrence of any Tenant’s Hazardous Materials Activities (defined below); provided, however, that Landlord’s consent shall not be required for normal use in compliance with applicable Environmental
Laws of customary household and office supplies (Tenant shall first provide Landlord with a list of said materials use), such as mild cleaners, lubricants and copier toner. As used herein, the term “Tenant’s Hazardous Materials
Activities” shall mean any and all use, handling, generation, storage, disposal, treatment, transportation, release, discharge, or emission of any Hazardous Materials on, in, beneath, to, from, at or about the Property, in connection with
Tenant’s use of the Property, or by Tenant or by any of Tenant’s agents, employees, contractors, vendors, invitees, visitors or its future subtenants or assignees. Tenant agrees that any and all Tenant’s Hazardous Materials Activities
shall be conducted in strict, full compliance with applicable Environmental Laws at Tenant’s expense, and shall not result in any contamination of the Property or the environment. Tenant shall not discharge any 

  

					
	Multi Tenant/Single Parcel	 	Page 20 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
Hazardous Materials in the plumbing, sewer and/or storm drains in the Premises and/or Parcel. Tenant agrees to provide Landlord with prompt written notice of
any spill or release of Hazardous Materials at the Property during the term of the Lease of which Tenant becomes aware, and further agrees to provide Landlord with prompt written notice of any violation of Environmental Laws in connection with
Tenant’s Hazardous Materials Activities of which Tenant becomes aware. In the event Tenant’s Hazardous Materials Activities includes radioactive materials, Tenant acknowledges and agrees that all such radioactive materials use shall cease
in sufficient time prior to the Lease Termination Date to enable Tenant to obtain complete closure and complete decommissioning of the Premises by all applicable governing agencies (local and State) by no later than the Lease
Termination Date. If Tenant’s Hazardous Materials Activities involve Hazardous Materials other than normal use of customary household and office supplies, Tenant also agrees that Tenant shall at Tenant’s costs and expense: (i) install
such Hazardous Materials monitoring, storage and containment devices as required by applicable Environmental Law and/or the governing agencies (however, in no event shall Tenant discard any Hazardous Materials in the Building plumbing system and/or
the Building sewer system) and (ii) deliver to Landlord by April 1, 2008 and on April 1 of each year thereafter during the Term of this Lease and any extended Term thereof, a written report prepared by a licensed, qualified
environmental consultant, reasonably acceptable to Landlord, which confirms that Tenant is in compliance with all applicable Environmental Laws with respect to Tenant’s Hazardous Materials Activities at the Premises or if not in compliance, the
corrective action required; said report shall include a list of the Hazardous Materials used, stored and/or disposed at the Premises and the location(s) within the Premises of such Hazardous Materials use, storage and/or disposal. Tenant, at its
expense, shall promptly undertake and complete any and all steps necessary to be in full compliance with applicable Environmental Laws and to fully correct any and all problems or deficiencies addressed in said report; and Tenant shall promptly
provide Landlord with documentation of all such corrective action taken. 
 C. Prior to termination or expiration of the Lease, Tenant, at
its expense, shall (i) properly remove from the Property all Hazardous Materials which come to be located at the Property in connection with Tenant’s Hazardous Materials Activities, and (ii) fully comply with and complete all facility
closure requirements of applicable Environmental Laws regarding Tenant’s Hazardous Materials Activities, including but not limited to (x) properly restoring and repairing the Property to the extent damaged by such closure activities, and
(y) obtaining from the local Fire Department or other appropriate governmental authority with jurisdiction a written concurrence that closure has been completed in compliance with applicable Environmental Laws. Tenant shall promptly provide
Landlord with copies of any claims, notices, work plans, data and reports prepared, received or submitted in connection with any such closure activities. 
 D. If Landlord, in its sole discretion, believes that the Property has become contaminated as a result of Tenant’s Hazardous Materials Activities, Landlord in addition to any other rights it may have under this
Lease or under Environmental Laws or other laws, may enter upon the Property and conduct inspection, sampling and analysis, including but not limited to obtaining and analyzing samples of soil and groundwater, for the purpose of determining the
nature and extent of such contamination. Tenant shall promptly reimburse Landlord for the costs of such an investigation, including but not limited to reasonable attorneys’ fees Landlord incurs with respect to such investigation, that discloses
Hazardous Materials contamination for which Tenant is liable under this Lease. Notwithstanding the above, Landlord may, at its option and in its sole and absolute discretion, choose to perform remediation and obtain reimbursement for cleanup costs
as set forth herein from Tenant. Any cleanup costs incurred by Landlord as the result of Tenant’s Hazardous Materials Activities shall be reimbursed by Tenant within thirty (30) days of presentation of written documentation of the expense
to Tenant by Landlord. Such reimbursable costs shall include, but not be limited to, any reasonable consultant and attorney fees incurred by Landlord. Tenant shall take all actions necessary to preserve any claims it has against third parties,
including, but not limited to, its insurers, for claims related to its operation, management of Hazardous Materials or contamination of the Property. Except as may be required of Tenant by applicable Environmental Laws, Tenant shall not perform any
sampling, testing, or drilling to identify the presence of any Hazardous Materials at the Property, without Landlord’s prior written consent which may be withheld in Landlord’s discretion. Tenant shall promptly provide Landlord with copies
of any claims, notices, work plans, data and reports prepared, received or submitted in connection with any sampling, testing or drilling performed pursuant to the preceding sentence. 
 E. Tenant shall indemnify, defend (with legal counsel acceptable to Landlord, whose consent shall not unreasonably be withheld) and hold harmless
Landlord, its employees, assigns, successors, successors-in-interest, agents and representatives from and against any and all claims (including but not limited to third party claims from a private party or a government authority), liabilities,
obligations, losses, causes of action, demands, governmental proceedings or directives, fines, penalties, expenses, costs (including but not limited to reasonable attorneys’, consultants’ and other experts’ fees and costs), and
damages, which arise from or relate to: (i) Tenant’s Hazardous Materials Activities; (ii) any Hazardous Materials contamination caused by Tenant prior to the Commencement Date of the Lease; or (iii) the 

  

					
	Multi Tenant/Single Parcel	 	Page 21 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 
breach of any obligation of Tenant under this Paragraph 44 (collectively, “Tenant’s Environmental Indemnification”). Tenant’s
Environmental Indemnification shall include but is not limited to the obligation to promptly and fully reimburse Landlord for losses in or reductions to rental income, and diminution in fair market value of the Property. Tenant’s Environmental
Indemnification shall further include but is not limited to the obligation to diligently and properly implement to completion, at Tenant’s expense, any and all environmental investigation, removal, remediation, monitoring, reporting, closure
activities, or other environmental response action (collectively, “Response Actions”). Tenant shall promptly provide Landlord with copies of any claims, notices, work plans, data and reports prepared, received or submitted in connection
with any Response Actions. 
 It is agreed that the Tenant’s responsibilities related to Hazardous Materials will survive the expiration or termination
of this Lease and that Landlord may obtain specific performance of Tenant’s responsibilities under this Paragraph 44. 
 45.
BROKERS. Tenant represents and warrants that it has not dealt with any real estate brokers, agents, or finders in connection with the original Term of this Lease, and knows of no real estate broker, agent or finder who is entitled to a
commission in connection with this Lease (“Lease Commission”). Tenant agrees to defend, protect, indemnify and hold Landlord harmless from and against all claims for brokerage commissions, finder’s fees, and other compensation made by
any broker, agent, or finder as consequence of the Tenant’s actions or dealings with such broker, agent or finder. The parties hereto acknowledge that Landlord will not pay a Lease Commission to any broker related to the original Term of this
Lease, or in the event this Lease is extended or the square footage leased hereunder is increased for any reason whatsoever. 
 46.
LANDLORD’S LIEN WAIVER: Landlord, within thirty (30) days after receipt of request from Tenant, (which request is to include a list of property to be covered by said Lien Waiver), shall execute and deliver Landlord’s
standard Lien Waiver as reasonably required by any supplier, lessor, or lender in connection with the installation in the Premises of the Tenant’s personal property or trade fixtures. 
 47. MISCELLANEOUS AND GENERAL PROVISIONS. 
 A. Use of Building Name. Tenant shall not, without the written consent of Landlord, use the name of the building for any purpose other than as the address of the business conducted by Tenant in the Premises.

 B. Choice of Law; Severability. This Lease shall in all respects be governed by and construed in accordance with the laws of the
State of California. If any provision of this Lease shall be invalid, unenforceable or ineffective for any reason whatsoever, all other provisions hereof shall be and remain in full force and effect. 
 C. Definition of Terms. The term “Premises” includes the space leased hereby and any improvements now or hereafter installed therein or
attached thereto. The term “Landlord” or any pronoun used in place thereof includes the plural as well as the singular and the successors and assigns of Landlord. The term “Tenant” or any pronoun used in place thereof includes
the plural as well as the singular and individuals, firms, associations, partnerships and corporations, and their and each of their respective heirs, executors, administrators, successors and permitted assigns, according to the context hereof, and
the provisions of this Lease shall inure to the benefit of and bind such heirs, executors, administrators, successors and permitted assigns. 
 The term “person” includes the plural as well as the singular and individuals, firms, associations, partnerships and corporations. Words used in any gender include other genders. If there be more than one Tenant the obligations of
Tenant hereunder are joint and several. The paragraph headings of this Lease are for convenience of reference only and shall have no effect upon the construction or interpretation of any provisions hereof. 
 D. Time Of Essence. Time is of the essence of this Lease and of each and all of its provisions. 
 E. Quitclaim. At the expiration or earlier termination of this Lease, Tenant shall execute, acknowledge and deliver to Landlord, within ten
(10) days after written demand from Landlord to Tenant, any quitclaim deed or other document required by any reputable title company, licensed to operate in the State of California, to remove the cloud or encumbrance created by this Lease from
the real property of which Tenant’s Premises are a part. 
  

					
	Multi Tenant/Single Parcel	 	Page 22 of 23	 	Initial:             

			
	 BUILDING:
	 	 West Bayshore

	 PROPERTY:
	 	40-0002
	 UNIT:
	 	2
	 LEASE ID:
	 	0002-OPTI01-01

  

 F. Incorporation of Prior Agreements; Amendments. This instrument along with any exhibits and
attachments hereto constitutes the entire agreement between Landlord and Tenant relative to the Premises and this agreement and the exhibits and attachments may be altered, amended or revoked only by an instrument in writing signed by both Landlord
and Tenant. Landlord and Tenant agree hereby that all prior or contemporaneous oral agreements between and among themselves and their agents or representatives relative to the leasing of the Premises are merged in or revoked by this agreement.

 G. Recording. Neither Landlord nor Tenant shall record this Lease or a short form memorandum hereof without the consent of the
other. 
 H. Amendments for Financing. Tenant further agrees to execute any reasonable amendments required by a lender to enable
Landlord to obtain financing, so long as Tenant’s rights hereunder are not substantially affected. 
 I. Clauses, Plats and
Riders. Clauses, plats and riders, if any, signed by Landlord and Tenant and endorsed on or affixed to this Lease are a part hereof. 
 J. Diminution of Light, Air or View. Tenant covenants and agrees that no diminution or shutting off of light, air or view by any structure which may be hereafter erected (whether or not by Landlord) shall in any way affect this
Lease, entitle Tenant to any reduction of Rent hereunder or result in any liability of Landlord to Tenant. 
 IN WITNESS WHEREOF, Landlord
and Tenant have executed and delivered this Lease as of the day and year last written below. 
  

											
	LANDLORD:	 		 	TENANT:
			
	JOHN ARRILLAGA SURVIVOR’S TRUST	 		 	OPTI, INC.
		 		 		 	a California corporation
					
	By	 	  
	 		 	By	 	

		 	John Arrillaga, Trustee	 		 		 	
					
	Date:	 	  
	 		 	Title	 	  

					
		 		 		 	Type or Print Name	 	  

					
		 		 		 	Date:	 	  

  

					
	Multi Tenant/Single Parcel	 	Page 23 of 23	 	Initial:Employment Agreement between AtriCure, Inc. and David J. Drachman

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 EMPLOYMENT AGREEMENT
(“Agreement”) made and entered into as of the 9th of February 2007, by and between Atricure, Inc. (the
“Company”), with principal offices located at 6033 Schumacher Park Drive, West Chester, Ohio 45609 and David J. Drachman (the “Executive”) currently residing at 147 Linden Drive, Wyoming, Ohio 45215. 
 WITNESSETH: 
 WHEREAS, the
Executive is currently employed by the Company and, in such capacity, has rendered good and faithful service to the Company; 
 WHEREAS,
in recognition thereof, the Company and the Executive desire to enter into this Agreement, which, effective as of the date hereof (the “Effective Date”), shall govern the terms of the Executive’s employment; 
 NOW THEREFORE, in consideration of the mutual covenants and agreements set forth below and other good and valuable consideration, the receipt of
which is hereby acknowledged, the Company and the Executive hereby agree, as follows: 
 1. Employment. The Company hereby continues
the employment of the Executive as President and Chief Executive Officer with the duties and responsibilities set forth in Section 4. The Executive will, if so elected, serve as a director of the Company and as a senior officer and/or director
of any affiliate of the Company without compensation in addition to that provided for in this Agreement. 
 2. Term. The term of
Executive’s employment hereunder shall commence on the Effective Date and shall end on that date on which such employment shall be terminated under the provisions of Section 8 hereof. Such term, regardless of the length thereof, shall be
referred to herein as the “Employment Term”. 
 3. Work Location. The Executive’s principal place of employment shall
be in West Chester, Ohio or within a fifty (50)-mile radius of the Company’s current principal office at 6033 Schumacher Park Drive. If the Executive is required to perform his duties in any location other than the Executive’s principal
place of employment for thirty (30) or more consecutive days, then during any such period, the Executive shall be able to return to his principal place of employment on weekends at the expense of the Company. 
 4. Duties and Responsibilities. 
 (a) Description. The Executive shall continue to be employed by the Company in such capacity or capacities, and shall perform such duties and 

 
exercise such powers, as are commensurate with a President and Chief Executive Officer of a business of comparable size and type, and consistent with his
title as such, subject to such directions and restrictions as the Board of Directors of the Company may from time to time designate, and otherwise upon the terms and conditions herein contained. The Executive shall report to the Board of Directors.

 (b) Time and Effort. The Executive shall: 
 (i) devote his full working time and attention to the business and affairs of the Company, its subsidiaries and other affiliates and shall
not, without the prior consent in writing of the Company, directly or indirectly, undertake any other business or occupation or become an employee, agent or director (or a person acting in a capacity similar to that of a director) of, or a
consultant to, any other company, trust, firm, individual or person. Nothing herein shall be construed so as to prevent the Executive from making investments of a strictly passive nature, so long as the undertaking forming the subject matter of any
such investment is not otherwise in conflict with the Executive’s contractual or other legal obligations to the Company; 
 (ii) perform those duties that may be assigned by the Board of Directors of the Company to the Executive diligently and faithfully to the best of the Executive’s abilities and in the best interests of the Company and its affiliates;
and 
 (iii) use his best efforts to promote the interests of the Company and its affiliates. 
 (c) Reaffirmation. Nothing in this Agreement is intended to impair or be in derogation of the Executive’s obligations under
that certain Non- Competition, Proprietary Information and Inventions Agreement, executed by the Executive on October 22, 2002 (the “2002 Agreement”), the effectiveness of which agreement (including the non-compete provisions, as
amended herein, of Section 4 thereof) is hereby reconfirmed. 
 5. Compensation. 
 (a) Base Salary. The Company shall pay the Executive a base salary at the rate of four hundred thousand dollars ($400,000) per year
(as in effect from time to time in accordance with the provisions below, the “Base Salary”), payable in accordance with the Company’s payroll procedures, subject to all withholdings provided for in Section 10. The Company shall
review the Base Salary annually for merit increases, which shall be made subject to and at the sole and absolute discretion of the Board of Directors or, if the Board shall so elect, the Compensation Committee thereof. Once increased, the Base
Salary shall not thereafter be decreased. 
 (b) Bonus. The Executive shall receive such annual bonus, if any, to which
he may be entitled under such Management Incentive Program (or 

  

 - 2 - 

 
similar plan) as the Company may adopt with respect to each fiscal year of the Company, subject to the terms, plans, qualifications and conditions of any
such plan. 
 6. Other Benefits. The Executive shall also be entitled to the following: 
 (a) Employee Benefit Plans. The Executive shall also be entitled to such benefits, and to participate in such benefit plans, as may
be in effect from time to time and generally available to senior executive officers of the Company (and subject in any event to the participation standards and other terms and conditions of any such benefits or plans). 
 (b) Vacation. The Executive shall be entitled to four (4) weeks of vacation each year in accordance with the Company policies.
The Executive’s vacations will be scheduled at such times as will least interfere with the business of the Company. 
 (c) Insurance Reimbursement. Each year, the Company shall reimburse the Executive for insurance premiums paid by Executive to maintain $5,000,000 of term life insurance on the Executive, up to a maximum annual reimbursement of ten
thousand dollars ($10,000). Such payment shall be made promptly after the delivery by the Executive of reasonable documentation of such expenditure. 
 7. Reimbursement of Expenses. The Company shall reimburse the Executive for such expenses as may be reasonably incurred by the Executive in furtherance of the Executive’s performance of his duties
hereunder, subject to and in accordance with the Company policies concerning reimbursement of such expenses and provided, in any event, that the Executive timely furnishes to the Company a complete and accurate accounting of all such expenses.

 8. Termination of Employment. The Executive’s employment hereunder shall or may, as the case may be, be terminated under the
following circumstances: 
 (a) Death. The Executive’s employment hereunder shall terminate upon his death.

 (b) Total Disability. The Company may terminate the Executive’s employment hereunder upon the Executive
becoming “Totally Disabled.” For purposes of this Agreement, the Executive shall be deemed “Totally Disabled” if (i) he is deemed “totally disabled” (or other words to such effect) under any long-term disability
plan maintained by the Company or (ii) he is unable, by reason of physical or mental disability, to perform, in all material respects, his duties and responsibilities under this Agreement for either one substantially continuous period of four
(4) months or a total of six (6) months in any given period of nine (9) months. If requested by the Company, the Executive 

  

 - 3 - 

 
shall submit to one or more examinations by one or more physicians selected by the Company in connection with the Company’s attempts to determine
whether the Executive is Totally Disabled. 
 (c) Termination by the Company for Cause. The Company may immediately
terminate the Executive’s employment hereunder for Cause at any time by notice given to the Executive. For purposes of this Agreement, the term “Cause” shall mean any of the following: (i) the commission by the Executive of a
felony, or of any criminal act involving moral turpitude, which results in a conviction; (ii) the deliberate and material failure or refusal by the Executive to perform, consistent with the terms of this Agreement his employment duties
hereunder (other than as a result of vacation, sickness, illness or injury), and the failure to rectify the same within thirty (30) days after the Company shall have given notice to the Executive identifying such failure or refusal and
demanding that it be rectified; (iii) the Executive’s commission of any act of fraud, embezzlement, dishonesty or other willful misconduct that has caused, or would reasonably be expected to cause, material injury to the Company;
(iv) an act of gross negligence on the part of the Executive that has caused, or would reasonably be expected to cause, material injury to the Company; (v) a deliberate and material violation of a written Company policy; or (vi) a
material breach of this Agreement or the 2002 Agreement (or, in each case, any successor thereto or amendment thereof) which (and only if the same shall be curable) Executive fails to cure within thirty (30) days after the Company shall have
given notice to the Executive identifying such breach and demanding that it be cured. 
 (d) Termination by the Executive
for Good Reason. The Executive may immediately terminate his employment hereunder for Good Reason at any time by notice given to the Company. For purposes of this Agreement, the term “Good Reason” shall mean the occurrence of any of
the following and the failure of the Company to rectify the same within thirty (30) days after the Executive shall have given notice to the Company which identifies the action complained of and demands that it be rectified: (i) a breach by
the Company of this Agreement; (ii) a material reduction in the Executive’s duties and responsibilities hereunder; (iii) a reduction in the Executive’s Base Salary or his annual “target bonus” (as such “target
bonus” may be established by the Board of Directors, or a committee thereof, from time to time); or (iv) a change in the Executive’s principal place of employment to a location that is not within a fifty (50)-mile radius of 6033
Schumacher Park Drive. 
 (e) Voluntary Termination. Either the Company or the Executive may terminate the
Executive’s employment under this Agreement at any time for any reason or no reason upon such prior written notice to the other party, if any, as is provided for below (a termination effected by the Company under this provision being referred
to as a termination “Without Cause”). Accordingly, each of the Company and the Executive acknowledges that Executive’s employment with the Company is on a so-called “at-will” basis, and 

  

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that no minimum period of employment is required hereunder or otherwise. Executive shall give the Company at least sixty (60) days’ prior written
notice in the event of a termination by him under this Section 8(e). The Company shall not be obligated to give the Executive any prior written notice in connection with a termination by it under this Section 8(e), but may do so in its
sole and absolute discretion. 
 (f) Notice of Termination. Any termination by the Company or the Executive under this
Agreement shall be communicated by Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice in writing which shall indicate the specific termination provision in this
Agreement relied upon to terminate the Executive’s employment and, except in the case of Section 8(e), setting forth, in reasonable detail, the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated. 
 9. Economic Consequences of a Termination of Employment. 
 (a) Under all Circumstances. Under all circumstances, upon termination, the Executive or his estate, as the case may be, shall be
entitled to: 
 (i) Any accrued but unpaid Base Salary for services rendered up to the date on which the Executive’s
employment shall actually have ceased (the “Termination Date”); 
 (ii) Payment for any accrued and unpaid vacation
or similar pay to which he is entitled under Company policies; 
 (iii) Any medical, dental, life insurance or similar
“welfare” benefits to which the Executive may be entitled upon termination pursuant to the plans, policies and arrangements referred to in Section 6 hereof, which shall be paid in accordance with the terms of such plans, policies and
arrangements; and 
 (iv) Exercise his vested stock options in accordance with the terms of the relevant stock option plans.

 (b) Termination Without Cause or With Good Reason. 
 (i) No Change of Control. In the event that (A) either the Company shall terminate the employment of the Executive hereunder
Without Cause or the Executive shall terminate his employment hereunder for Good Reason and (B) the related Notice of Termination shall not have been given during a Change of Control Period (as defined below), the Executive shall, in addition
to those rights provided under Section 9(a), be entitled to a severance payment equal to six (6) months of the Executive’s then Base Salary, which payment shall be paid to him during the six (6) month period following the 

  

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Termination Date in substantially equal installments, as and when regular payroll payments are made by the Company to its employees. 
 (ii) Change of Control. In the event that (A) either the Company shall terminate the employment of the Executive hereunder
Without Cause or the Executive shall terminate his employment hereunder for Good Reason and (B) the related Notice of Termination shall have been given during a Change of Control Period, the Executive shall, in addition to those rights provided
under Section 9(a), be entitled to a severance payment equal to (A) twelve (12) months of the Executive’s then Base Salary plus (B) an amount equal to Executive’s “target bonus” for the year in which the
Termination Date shall have occurred, which payment shall be paid to him during the twelve (12) month period following the Termination Date in substantially equal installments, as and when regular payroll payments are made by the Company to its
employees. 
 (c) Termination for Total Disability. In the event that the Company shall terminate the employment of the
Executive hereunder for Total Disability, the Executive shall, in addition to those rights provided under Section 9(a), be entitled to a severance payment equal to six (6) months of the Executive’s then Base Salary, which payment
shall be paid to him during the six (6) month period following the Termination Date in substantially equal installments, as and when regular payroll payments are made by the Company to its employees. 
 (d) Definitions. For purposes of this Agreement, the following terms shall have the meanings assigned thereto below: 
 (i) “Change of Control” shall have the same meaning ascribed thereto in the Company’s 2005 Equity Incentive Plan, as the
same may be amended from time to time; and 
 (ii) “Change of Control Period” shall mean the period beginning on the
date on which a Change of Control occurs and ending on the one (1) year anniversary of such date. 
 (e) Release.
Prior to the receipt of any benefits under Section 9(b), the Executive shall be required to execute a release of claims agreement (the “Release”) in the form provided by the Company. Without limiting the foregoing, such Release shall
specifically relate to all of the Executive’s rights and claims in existence at the time of such execution (other than those surviving rights referred to in this Section 9) and shall confirm the Executive’s obligations under the 2002
Agreement. 
 (f) Violation of 2002 Agreement. The Executive consents and agrees that if he breaches any of the
provisions of the 2002 Agreement (or any other confidentiality, non-competition or non-solicitation provision in favor of the Company to which he is bound) in any material respect, he shall be deemed to have immediately and permanently forfeited any
payments which are or would 

  

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become payable to him under Section 9(b) (and including any such sums which may already have been paid to him), regardless whether the termination of
his employment shall have occurred prior to or after such breach. 
 (g) Specified Benefits. Except as specifically
provided in this Section 9, the Executive shall not be entitled to any compensation or other benefits in connection with any termination of his employment. 
 10. Withholding of Taxes. The Company may withhold from any compensation and benefits payable under this Agreement all applicable federal, state, local and other taxes. 
 11. Entire Agreement and Amendments. This Agreement shall constitute the entire agreement between the parties and supersedes all existing
agreements between them, whether oral or written, with respect to the subject matter hereof (including but not limited to that certain offer of employment letter, dated October 8, 2002, executed by the Company). Any waiver, alteration, or
modification of any of the provisions of this Agreement, or cancellation or replacement of this Agreement shall be accomplished in writing and signed by the respective parties. 
 12. Notices. All notices, requests, demands and other communications provided for or permitted under this Agreement shall be in writing and shall
be either personally delivered (including delivery by express couriers such as Federal Express) or sent by prepaid certified mail, return receipt requested, addressed to the party to which notice is to be given at the address set forth above for
such party, or to such other address as such party may have fixed by notice given in accordance with the terms hereof. Any notice sent as aforesaid shall be deemed given and effective upon the earlier of (a) delivery to the address for the
receiving party provided for herein and (b) the date falling three days after notice of attempted delivery has been left at the address to which a notice to the receiving party is to be sent hereunder. 
 13. Governing Law. This Agreement shall be construed in accordance with, and the rights of the parties shall be governed by, the laws of the State
of Ohio. 
 14. Severability. If any term or provision of this Agreement is declared illegal or unenforceable by any court of
competent jurisdiction and cannot be modified to be enforceable, such term or provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect. 
 15. Counterparts; Fax Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and when
taken together shall constitute one agreement. This Agreement may be executed by an exchange of faxed signature pages. 
  

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 16. Assignment. The rights and obligations of the Executive under this Agreement, other than
accrued and unpaid amounts due under Section 5 hereof, are personal to the Executive and are not assignable or delegable. This Agreement may not be assigned by the Company except to an affiliate of the Company, provided that such affiliate
assumes the Company’s obligations under this Agreement; provided, further, that if the Company merges or effects a consolidation or share exchange with or into, or sells or otherwise transfers substantially all its assets to,
another business entity, the Company may assign its rights hereunder to that business entity without the consent of the Executive, provided that it causes such business entity to assume the Company’s obligations under this Agreement.

 17. Waiver. No waiver of any party hereto of a breach of any provision of this Agreement by any other party shall operate or be
construed as a waiver of any subsequent breach by such other party. The failure of any party hereto to take any action by reason of such breach shall not deprive such party of the right to take action at any time while such breach continues.

 18. Section 409A. In the event that the Executive is a “specified employee” within the meaning of Section 409A
of the Internal Revenue Code (respectively, “Section 409A” and the “Code”), payments under Section 9 of this Agreement shall not commence (or be made, in the case of a lump sum payment) until six (6) months following
the Termination Date, or shall be otherwise modified, but only to the minimum extent necessary to avoid the imposition of the additional twenty percent (20%) tax imposed under Section 409A (and in the case of installment payments, the
first payment shall include all installment payments required by this Agreement that otherwise would have been made during such six (6) month period); provided, however, that any such modification shall preserve, to the maximum extent possible
in a Section 409A compliant manner, the original intent of the parties to this Agreement. In addition, the parties hereby agree that it is their intention that all payments or benefits provided under this Agreement comply with
Section 409A, and this Agreement shall be interpreted accordingly. The Executive is advised to seek independent advice from his tax advisor(s) with respect to the application of Section 409A to any payments or benefits under this
Agreement. Notwithstanding the foregoing, the Company does not guarantee the tax treatment of any payments or benefits under this Agreement, including without limitation under the Code or other federal, state or local laws. 
  

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 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the undersigned duly
authorized persons as of the day and year first stated above. 
  

			
	ATRICURE, INC.
		
	By:	 	/s/ Julie Piton
	Printed Name:  Julie Piton
	Title: VP/CFO

  

			
	
	 /s/ David J. Drachman
  

	David J. Drachman

  

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