Document:

exv10w1

Exhibit 10.1

STANDARD FORM OFFICE LEASE

by and between

LUM YIP KEE, LIMITED

a Hawaii corporation, doing business as Twin Trees Land Company

“Landlord”

and

SOLAR POWER, INC.,

a California corporation

“Tenant”

of:

2240 DOUGLAS BOULEVARD, SUITE 200, ROSEVILLE, CA

“Property”

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	1. TERMS AND DEFINITIONS
	 	 	1	 
	2. PREMISES AND COMMON AREAS LEASED
	 	 	2	 
	3. TERM
	 	 	4	 
	4. POSSESSION
	 	 	5	 
	5. ANNUAL BASIC RENT
	 	 	5	 
	6. RENTAL ADJUSTMENT
	 	 	6	 
	7. SECURITY DEPOSIT
	 	 	9	 
	8. USE OF PREMISES; COMPLIANCE WITH LAWS AND REGULATIONS
	 	 	10	 
	9. PAYMENTS AND NOTICES
	 	 	12	 
	10. BROKERS
	 	 	12	 
	11. HOLDING OVER
	 	 	12	 
	12. TAXES ON TENANT’S PROPERTY
	 	 	13	 
	13. CONDITION OF PREMISES
	 	 	13	 
	14. ALTERATIONS
	 	 	13	 
	15. REPAIRS
	 	 	17	 
	17. ENTRY BY LANDLORD
	 	 	18	 
	18. UTILITIES AND SERVICES
	 	 	19	 
	19. BANKRUPTCY
	 	 	20	 
	20. INDEMNIFICATION
	 	 	21	 
	21. DAMAGE TO TENANT’S PROPERTY
	 	 	21	 
	22. INSURANCE
	 	 	21	 
	23. DAMAGE OR DESTRUCTION
	 	 	25	 
	24. EMINENT DOMAIN
	 	 	27	 
	25. DEFAULTS AND REMEDIES
	 	 	27	 
	26. ASSIGNMENT AND SUBLETTING
	 	 	30	 
	27. SUBORDINATION AND NON-DISTURBANCE
	 	 	33	 
	28. ESTOPPEL CERTIFICATE
	 	 	34	 
	29. BUILDING PLANNING
	 	 	34	 
	30. RULES AND REGULATIONS
	 	 	34	 
	31. CONFLICT OF LAWS; INTERPRETATION
	 	 	35	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	Page	 
	32. SUCCESSORS AND ASSIGNS
	 	 	35	 
	33. SURRENDER OF PREMISES
	 	 	35	 
	34. ATTORNEYS’ FEES
	 	 	35	 
	35. PERFORMANCE BY TENANT
	 	 	35	 
	36. MORTGAGEE PROTECTION
	 	 	36	 
	37. DEFINITION OF LANDLORD
	 	 	36	 
	38. WAIVER
	 	 	36	 
	39. IDENTIFICATION OF TENANT
	 	 	37	 
	40. PARKING
	 	 	37	 
	41. TERMS AND HEADINGS
	 	 	37	 
	42. EXAMINATION OF LEASE
	 	 	37	 
	43. TIME
	 	 	37	 
	44. PRIOR AGREEMENTS; AMENDMENTS
	 	 	37	 
	45. SEPARABILITY
	 	 	38	 
	46. RECORDING
	 	 	38	 
	47. LIMITATION ON LIABILITY
	 	 	38	 
	48. RIDERS
	 	 	38	 
	49. SIGNS AND AUCTIONS
	 	 	38	 
	50. MODIFICATION FOR LENDER
	 	 	39	 
	51. ACCORD AND SATISFACTION
	 	 	39	 
	52. AUTHORITY
	 	 	39	 
	53. INTEREST ON UNPAID RENT
	 	 	39	 
	54. CONFERENCE ROOM
	 	 	39	 
	55. DISPUTED SUMS
	 	 	39	 

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LIST OF EXHIBITS

	 	 	 
	EXHIBIT	 	NAME
	A

	 	OUTLINE OF FLOOR PLAN OF PREMISES
	 
	 	 
	A-1

	 	SPACE PLAN
	 
	 	 
	A-2

	 	BUILDING SIGN LOCATION
	 
	 	 
	A-3

	 	TENANT IMPROVEMENT STANDARDS
	 
	 	 
	A-4

	 	CONSTRUCTION WASTE MANAGEMENT
	 
	 	 
	A-5

	 	LEED REQUIREMENTS
	 
	 	 
	A-6

	 	CONSTRUCTION INDOOR AIR QUALITY
	 
	 	 
	B

	 	RULES AND REGULATIONS
	 
	 	 
	C

	 	SATELLITE DISH EQUIPMENT
	 
	 	 
	D

	 	EXCLUSIONS FROM DIRECT EXPENSES
	 
	 	 
	E

	 	TENANT WORK LETTER

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STANDARD FORM OFFICE LEASE

THIS LEASE is dated as of the 26th day of April, 2011, for reference purposes only.

W I T N E S S E T H:

     1. TERMS AND DEFINITIONS. For the purposes of this Lease, the following terms shall
have the following definitions and meanings:

	 	 	 

	Landlord:

	 	LUM YIP KEE, LIMITED, a Hawaii corporation,
	 

	 	doing business as Twin Trees Land Company
	 
	 	 
	Landlord’s Address:

	 	80 North King Street
	 

	 	Honolulu, HA 96817-5109
	 
	 	 
	Tenant:

	 	SOLAR POWER, INC., a California corporation
	 
	 	 
	Tenant’s Address:

	 	2240 Douglas Boulevard, Suite 200, Roseville, CA 95661
	 
	 	 
	Building Address:

	 	2240 Douglas Boulevard, Roseville, CA 95661
	 
	 	 
	Suite Number:

	 	 200
	 
	 	 
	Premises:

	 	Those certain premises defined in Subparagraph 2(a) below.
	 
	 	 
	Rentable Area of Premises

	 	Agreed to be approximately 11,275 rentable square feet;
	 

	 	being 114% of the Usable Area.
	 
	 	 
	Usable Area of Premises:

	 	Agreed to be 9,890 square feet.
	 
	 	 
	Floor(s) upon which the

	 	Second floor
	Premises are located:
	 	 
	 
	 	 
	Term:

	 	72 months
	 
	 	 
	Tenant Improvements:

	 	Landlord, at Landlord’s sole cost and expense, shall provide
new Building standard carpet and paint throughout the
interior of the Premises, color selection to be mutually
acceptable to Landlord and Tenant. Additionally, Landlord
will provide Tenant a Tenant Improvement/Moving Allowance in
the amount of Five Dollars ($5.00) per usable square foot
which may be applied to the improvements listed in the
attached Space Plan shown in Exhibit A-1 and on the terms
described in the Work Letter Agreement

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	 	attached in Exhibit
E; otherwise the Premises shall be delivered by Landlord and
accepted by Tenant in their “as-is” condition.
	 
	 	 
	Commencement Date:

	 	August 1, 2011 or upon substantial completion of Tenant
Improvements, whichever is earlier.

Annual Basic Rent:

	 	 	 	 	 	 	 	 	 
	Month	 	Annual Basic Rent	 	 	Monthly Installments	 
	01-12
	 	$236,775.00 (@$1.75/sq. ft.)	 	-0- (Rent Free)
	13-24
	 	$236,775.00		 	 	$	19,731.25	 
	25-36
	 	$243,878.25		 	 	$	20,323.19	 
	37-48
	 	$251,194.60		 	 	$	20,932.88	 
	49-60
	 	$258,730.44		 	 	$	21,560.87	 
	61-72
	 	$266,492.35		 	 	$	22,207.70	 

	 	 	 

	Direct Expenses Base:

	 	All Direct Expenses for the calendar year 2011 grossed up
	 

	 	to 95% occupancy (subject to the provisions of Paragraph 6)
	 
	 	 
	Tenant’s Percentage:

	 	 25.67% (subject to the provisions of Paragraph 6)
	 
	 	 
	Security Deposit:

	 	 $44,415.40
	 
	 	 
	Guarantor:

	 	None
	 
	 	 
	Landlord’s Broker:

	 	Cornish & Carey Commercial Newmark Knight Frank
	

	 	(Elaine Hartin and Tom Heacox)
	 
	 	 
	Tenant’s Broker:

	 	Crossroad Ventures Group (John Esway and Jim Esway)

     2. PREMISES AND COMMON AREAS LEASED.

          (a) Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, the Premises
contained within the suite designated in Paragraph 1, outlined on the Floor Plan attached as
Exhibit A and Exhibit A-1 and incorporated herein by this reference, and improved by Landlord and
Tenant with the Tenant Improvements described in the Work Letter Agreement, a copy of which is
attached as Exhibit E and incorporated herein by this reference. Said Premises are agreed, for the
purposes of this Lease, to have the number of square feet designated in Paragraph 1 and being
situated on the Floor(s) designated in Paragraph 1, of that certain office building located at the
address designated in Paragraph 1 (hereinafter called

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“Building”). The Premises exclude the common stairways, stairwells, hallways,
accessways, elevator shafts, flues, pipe shafts, vertical ducts, conduits, wires and appurtenant
fixtures serving exclusively for or in common with other parts of the Building. By taking
possession of the Premises, Tenant accepts the Premises in its “as-is, where-is condition” as of
the Commencement Date of this Lease; provided that Landlord warrants that all existing lights,
HVAC, electrical and base operating features and systems within the Premises shall be in good
working order as of the Commencement Date and delivery of the Premises to Tenant.

               The parties hereto agree that said letting and hiring is upon and subject to the terms,
covenants and conditions herein set forth and Tenant covenants as a material part of the
consideration for this Lease to keep and perform each and all of said terms, covenants and
conditions by it to be kept and performed and that this Lease is made upon the condition of such
performance.

               Tenant acknowledges and agrees that this Lease shall be subject and subordinate to the terms
and conditions of any and all covenants, conditions or restrictions now or hereafter affecting the
Building (the “Covenants, Conditions & Restrictions”).

          (b) Tenant shall have the nonexclusive right to use in common with other tenants in the
Building and subject to the Rules and Regulations referred to in Paragraph 30 below, the following
areas appurtenant to the Premises:

               (1) The common entrances, lobbies, restrooms, elevators, stairways, and accessways, loading
docks, ramps, drives and platforms and any passageways and serviceways thereto, and the common
pipes, conduits, wires and appurtenant equipment serving the Premises (except to the extent
exclusively leased by Landlord to other tenants);

               (2) Common walkways and sidewalks necessary for access to the Building maintained by Landlord.

          (c) Landlord reserves the right from time to time without unreasonable interference with
Tenant’s use:

               (1) To install, use, maintain, repair and replace pipes, ducts, conduits, wires and
appurtenant meters and equipment for service to other parts of the Building above the ceiling
surfaces, below the floor surfaces, within the walls and in the central core areas, and to relocate
any pipes, ducts, conduits, wires and appurtenant meters and equipment included in the Premises
which are located in the Premises or located elsewhere outside the Premises, and to expand the
Building;

               (2) To alter or relocate any other common facility.

          (d) The “Usable Area” of the Premises, measured in accordance with the American
National Standard Method of Measuring Floor Area in Office Buildings, ANSI Z65.1-1996, published by
the Building Owners and Managers Association International, is agreed to be 9,890 square feet. The
term “Rentable Area” as used in this Lease is agreed to be as provided in Section 1, above,
determined by multiplying the Usable Area by one hundred fourteen percent (114%).

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          (e) Tenant agrees to cooperate with any private or governmental efforts to reduce the traffic
generated by the Building as required by any applicable Ridesharing Ordinance, Transportation
Management Agreement, or Building Transportation Management Plan (collectively the
“Transportation Plan”) and any similar or successor ordinances, laws or agreements. Before
signing this Lease, Tenant shall have reviewed the applicable Transportation Plan documents, copies
of which are available from Landlord upon request, and agrees to comply with the provisions thereof
which are relevant to Tenant and its employees. Tenant further agrees that upon Landlord’s request
it will designate one of its employees to act as a liaison with Landlord to facilitate and
coordinate the administration of the aforementioned traffic reduction efforts.

     3. TERM.

          (a) Commencement. The term of this Lease shall be for a period of 6 years commencing
on August 1, 2011 or upon substantial completion of Tenant Improvements, whichever is earlier.

          (b) Option to Extend. Provided no uncured Tenant default exists at the time such
option is exercised or as of the date the Extended Term (defined below) is to commence, Tenant
shall have the option to extend the term of this Lease for one (1) additional period of five (5)
years (“Extended Term”). Tenant may exercise such extension right by providing written
notice to Landlord not later than one hundred eighty (180) days prior to the expiration of the
initial term of this Lease. Annual Basic Rent during the first year of such Extended Term will be
at a rate equal to the then prevailing Fair Market Rental Rate (“FMRR”) for buildings along
the Douglas Boulevard corridor. Not later than one hundred twenty (120) days prior to the
expiration of the initial term, Landlord will notify Tenant of the FMRR. If Tenant disputes
Landlord’s determination of the FMRR and such dispute cannot be resolved on or before ninety (90)
days prior to the expiration of the initial term, Landlord and Tenant will agree upon a mutually
acceptable real estate broker familiar with rental rates along the Douglas Boulevard corridor and
having not less than ten (10) years brokerage experience. The determination of such broker, to be
received not later than sixty (60) days prior to the expiration of the initial term, will be
binding on Landlord and Tenant; provided, however, that in no event will Annual Basic Rent during
the first year of the Extended Term be less than that in effect during the immediately preceding
Lease Year. Landlord and Tenant will share the cost of the services of any such broker. Annual
Basic Rent for the Extended Term, established as set forth above, will be subject to an annual
increase of three percent (3%) during each subsequent Lease Year of the Extended Term. Tenant will
remain liable during the Extended Term for Tenant’s Percentage of any increases in Direct Expenses
over the Direct Expenses Base (which will remain unchanged throughout the Extended Term). This
Option to Extend is personal to Tenant and is not transferable to any subtenant or assignee.

          (c) Abated Rent. Landlord shall credit Tenant with its monthly Rent for the first 12
months of the Lease Term totaling $236,775.00 (the “Abated Rent”) and a Moving Allowance
(as defined in Section 13). Tenant shall be credited with having paid the Abated Rent during the
Lease Term, but only if Tenant has fully, faithfully and punctually performed all of Tenant’s
obligations under the Lease, including the payment of all Rent (other than the Abated

4

 

Rent) and all other monetary obligations, and the surrender of the Premises in the physical
conditions required under the Lease. Tenant acknowledges that its right to receive the Abated Rent
and the Tenant Improvement/Moving Allowance is absolutely conditioned upon Tenant’s full, faithful,
and punctual performance of its obligations under the Lease. Tenant’s default which remains
uncured beyond any notice and cure period under the Lease shall cause the Abated Rent to become due
and payable as Rent and the Tenant Improvement / Moving Allowance to be due and payable to
Landlord as Additional Rent. Late payment of Rent does not constitute an uncured default for the
purposes of the prior sentence so long as it is fully paid no later than 30 days after the due date
(but interest and late fees shall be due and Landlord is not prohibited from pursuing its full
legal remedies of a material default until it is paid.)

     4. POSSESSION. Tenant agrees that in the event of the inability of Landlord to
deliver possession of the Premises to Tenant on the date above specified for the commencement of
the term of this Lease, this Lease shall not be void or voidable, nor shall Landlord be liable to
Tenant for any loss or damage resulting therefrom, nor shall the expiration date of the above term
be in any way extended, but in such event Tenant shall not be liable for any rent until Landlord
delivers possession of the Premises to Tenant with Landlord’s work therein, if any, substantially
completed. Should Landlord tender possession of the Premises to Tenant prior to the date specified
for commencement of the term hereof, and Tenant elects to accept such prior tender, such prior
occupancy shall be subject to all of the terms, covenants and conditions of this Lease, including
the payment of rent.

     5. ANNUAL BASIC RENT. (As used in Paragraph 5, “Annual” and “Year”
refer to twelve (12)-month periods based on the Lease term Commencement Date and each anniversary
thereof, and not to calendar year.)

          (a) Tenant agrees to pay Landlord as Annual Basic Rent for the Premises the Annual Basic Rent
designated in Paragraph 1 (subject to adjustment as provided in Paragraph 1) in twelve (12) equal
monthly installments, each in advance on the first day of each and every calendar month during said
term, except that the first month’s rent shall be paid upon the execution hereof. In the event the
Term of this Lease commences or ends on a day other than the first day of a calendar month, then
(i) the rental for such periods shall be prorated in the proportion that the number of days this
Lease is in effect during such periods bears to thirty (30), and such rental shall be paid at the
commencement of such periods and (ii) the Term shall begin on such date and shall include such
partial month as well as the number of months specified for the Term in Paragraph 1. Tenant hereby
acknowledges that Landlord shall not send monthly statements and invoices as a condition to Tenant
paying any rent due under this Lease. All amounts payable by Tenant to or on behalf of Landlord
under this Lease, whether or not expressly denominated as “rent” shall be considered rent (x) for
purposes of this Lease, except as expressly stated herein, and (y) for purposes of Section
502(b)(6) of the Bankruptcy Code (Title 11 U.S.C.). In addition to said Annual Basic Rent, Tenant
agrees to pay the amount of the rental adjustments as and when hereinafter provided in this Lease.
Said rental shall be paid to Landlord, without any prior demand therefor and without any deduction
or offset whatsoever in lawful money of the United States of America, which shall be legal tender
at the time of payment, at the address of Landlord designated in Paragraph 1 or to such other
person or at such other place as Landlord may from time to time designate in writing. Tenant
agrees to pay as additional rent to Landlord, upon demand, Tenant’s Percentage of any parking
charges, utilities,

5

 

surcharges, or any other costs levied, assessed or imposed by, or at the direction of or
resulting from statutes or regulations, or interpretations thereof, promulgated by any federal,
state, regional, municipal or local government authority in connection with the use or occupancy of
the Building or the Premises or the parking facilities serving the Building or the Premises. Rent
for the purposes of Section 365(d)(3) of the Bankruptcy Code (Title 11 U.S.C.) shall be prorated
for any partial month in which the Tenant is a debtor in a case under the Bankruptcy Code and such
prorated rent shall be deemed arising from and after the order for relief and shall be due in
advance on the day after the day of filing the bankruptcy petition.

     6. RENTAL ADJUSTMENT.

          (a) Calculation of Direct Expenses. For the purpose of this Paragraph 6, the
following terms are defined as follows:

               (1) Lease Year. The calendar year 2011, and each calendar year thereafter.

               (2) Tenant’s Percentage. Tenant’s portion of the total rentable area of the Building
as set forth as a percentage in Paragraph 1 above, subject to proportionate increase or decrease if
the rentable area of the Building is increased or decreased, but without regard to minor deviations
between the actual footage and those used to compute Tenant’s Percentage. If such increase or
decrease occurs during any Lease Year of the term of this Lease, then the Tenant’s Percentage shall
be determined on the basis of the number of days during such Lease Year at each such percentage.

               (3) Direct Expenses Base. The “Direct Expenses Base” shall be equal to the
annual Direct Expenses for the Building for the calendar year 2011, grossed up to what Direct
Expenses would have been had the Building been ninety-five percent (95%) occupied throughout that
year.

               (4) Direct Expenses. All direct costs of operation and maintenance of the Building
(“Direct Expenses”) as determined by standard accounting practices, including the following
costs by way of illustration, but not limitation: Real property taxes and assessments (as
hereinafter defined) and any taxes or assessments hereafter imposed in lieu thereof; the net cost
and expense of insurance for which Landlord is responsible hereunder or which Landlord or any first
mortgagee with a lien affecting the Premises reasonably deems necessary in connection with the
operation of the Building, including rent interruption insurance; utilities; janitorial services;
security; labor; costs incurred in the management of the Building, if any, including wages and
salaries of employees used in the management, operation, repair and maintenance of the Building,
and payroll taxes and similar governmental charges with respect thereto; air-conditioning; waste
disposal; heating; ventilating; elevator maintenance; supplies; materials; equipment; tools;
maintenance, costs, and upkeep of all parking and common areas; and costs of Landlord’s compliance
with Laws referred to in Subparagraph 8(d), below. Tenant acknowledges and agrees that Landlord
pays an allocated portion of the maintenance and landscaping expenses pursuant to the Covenants,
Conditions and Restrictions and that such expenses are included in the Direct Expenses. Direct
Expenses shall not include Landlord’s

6

 

executive salaries or real estate brokers’ commissions, marketing, leasing or advertising
costs. As used herein, the “Building” means the building in which Tenant’s premises are
located and the real property on which the Building is located. If any item of the Building’s
costs is not assessed, billed or charged separately from other leasable buildings owned or
controlled by Landlord, then any such “common cost” shall be reasonably apportioned by Landlord
between the Building and the other buildings subject to the “common cost.” The Direct Expenses
that vary with occupancy and that are attributable to any Lease Year in which less than ninety-five
percent (95%) of the rentable area of the Building is occupied by tenants will be adjusted by
Landlord to the amount that Landlord reasonably believes they would have been if ninety-five
percent (95%) of the rentable area of the Building had been occupied. Direct Expenses shall also
include: (i) administrative fees not to exceed ten percent (10%) of the annual Direct Expenses
excluding therefrom such administrative fees; or (ii) actual management fees paid to a property
manager unrelated to Landlord. All capital improvements shall be amortized in accordance with
standard accounting procedures, with the currently amortized portion being a Direct Expense during
the year when Landlord makes the alteration or equipment change and the balance of the amortization
shall be a Direct Expense in subsequent years, except, however, as provided in the last sentence of
Section 8(d) with regard to capital expenses made in response to Tenant’s alterations or equipment
changes.

               Without limiting the foregoing, annual Direct Expenses shall also include: (i) all costs of
maintaining, managing, reporting, commissioning, and recommissioning the Building or any part
thereof that was designed and/or built to be sustainable and conform with the U.S. Green Building
Council’s Leadership in Energy and Environmental Design (LEED) rating system or such other rating
system applicable to the Building from time to time, and (ii) all costs of applying, reporting and
commissioning the Building or any part thereof to seek certification under the U.S. Green Building
Council’s Leadership in Energy and Environmental Design (LEED) rating systems or such other rating
system applicable to the Building from time to time; provided, however, the cost of such applying,
reporting and commissioning of the Building or any part thereof to seek certification shall be a
cost capitalized and thereafter amortized as an annual Direct Expense under standard accounting
practices.

               Provided that a given cost of operating or maintaining the Building was not actually incurred
in the Lease Year used to calculate the Direct Expenses Base, the fact that such cost was not
included in the Direct Expenses Base shall not preclude Landlord from including such cost in Direct
Expenses for subsequent Lease Years.

               Real property taxes and assessments shall include, but not be limited to, any and all taxes,
assessments, water and sewer charges and other similar governmental charges levied on or
attributable to the Building or the land on which the Building is located (including appurtenant
property) or their operation, ordinary and extraordinary, substitute and additional, unforeseen as
well as foreseen, present and future, of any kind and nature whatsoever, including without
limitation, (i) real property taxes or assessments levied or assessed against the Building or the
land on which the Building is located (including any appurtenant property interest subject to real
property tax which, for purposes of this paragraph is deemed part of “the land”), (ii) assessments
or charges levied or assessed against the Building or the land on which the Building is located by
any redevelopment agency, (iii) any tax measured by gross rentals received from the leasing of the
Premises, Building or the land on which the Building is located,

7

 

excluding any net income, franchise, capital stock, estate or inheritance taxes imposed by the state or
federal government or their agencies, branches or departments; provided that if at any time during
the Term any governmental entity levies, assesses or imposes on Landlord any (1) general or
special, ad valorem or specific, excise, capital levy or other tax, assessment, levy or charge
directly on the Rent received under this Lease or on the rent received under any other leases of
space in the Building or any project wherein the Building is located, or (2) any license fee,
excise or franchise tax, assessment, levy or charge measured by or based, in whole or in part upon
such rent, or (3) any transfer, transaction, or similar tax, assessment, levy or charge based
directly or indirectly upon the transaction represented by this Lease or such other leases, or (4)
any occupancy, use, per capita or other tax, assessment, levy or charge based directly or
indirectly upon the use or occupancy of the Premises or other premises within the Building or any
project wherein the Building is located, then any such taxes, assessments, levies and charges shall
be deemed to be included in real property taxes and assessments.

               (5) Excess Expenses. Tenant’s Percentage of any increases in Direct Expenses over the
Direct Expenses Base paid or incurred by Landlord during the current Lease Year in excess of the
Direct Expenses Base. Tenant’s Percentage of such increases is hereinafter referred to as the
“Excess Expenses.”

          (b) Payment of Excess Expenses.

               (1) Tenant shall pay Landlord an amount equal to the Excess Expenses as provided in this
Subparagraph 6(b).

               (2) To provide for current payments of Excess Expenses, Tenant shall, at Landlord’s request,
pay as additional rent during the first Lease Year after the Base Year and every Lease Year
thereafter an amount equal to the Excess Expenses payable during such Lease Year, as estimated by
Landlord from time to time. Such payment shall be made in monthly installments, commencing on the
first (1st) day of the month following the month in which Landlord notifies Tenant of the amount it
is to pay hereunder and continuing until the first (1st) day of the month following the month in
which Landlord gives Tenant a new notice of estimated Excess Expenses. It is the intention
hereunder to estimate from time to time the amount of the Excess Expenses for each Lease Year, and
then to make an adjustment in the following Lease Year based on the actual Excess Expenses paid or
incurred for the prior Lease Year.

               (3) On or before April 1 of each Lease Year (commencing one year after the end of the Base
Year), Landlord shall deliver to Tenant a statement setting forth the actual Excess Expenses for
the preceding Lease Year; provided, however, that the failure of Landlord to supply such statement
shall not constitute a waiver of Landlord’s right to collect for such Excess Expenses. If the
actual Excess Expenses for the previous Lease Year exceed the total of the estimated monthly
payments made by Tenant for such Lease Year, Tenant shall pay Landlord the amount of the deficiency
within thirty (30) days after the receipt of the statement. If such total of the estimated monthly
payments made by Tenant exceeds the actual Excess Expenses for such Lease Year, then Landlord shall
credit against Tenant’s next ensuing monthly installment(s) of such estimated Excess Expenses for
the then current Lease Year an amount equal to the difference until the credit is exhausted. If a
credit is due from Landlord at the expiration or earlier termination of this Lease, Landlord shall
promptly pay Tenant the amount of

8

 

such credit. With respect to the Lease Year in which the Lease expires or is terminated,
Tenant shall, within thirty (30) days of Landlord’s demand therefor, pay to Landlord a reasonable
estimate, as determined by Landlord of the actual Excess Expenses for any partial Lease Year in
excess of Tenant’s payment for such Lease Year to date. Even though the term of this Lease has
expired or the Lease is sooner terminated and Tenant has vacated the Premises when the actual
Excess Expenses are determined for the final Lease Year or partial Lease Year, Tenant shall
immediately pay any deficiency in excess of the total estimated monthly payments and Landlord shall
immediately refund to Tenant any overpayment in excess of the actual Excess Expenses. Landlord and
Tenant intend that the obligations of the preceding sentence shall survive the expiration or
earlier termination of this Lease. The Excess Expenses in any partial Lease Year shall be prorated
on a daily basis utilizing a three hundred sixty-five (365)-day year.

               (4) In the event of any dispute regarding the Direct Expenses, Tenant may audit the Direct
Expenses for a period of 90 days following Landlord’s delivery of the statement setting forth the
amount due by Tenant, Tenant’s audit shall be conducted by a reputable accounting firm approved by
Landlord, and may not be on a contingency fee basis. The results of such audit shall be delivered
to Landlord. Tenant’s election to conduct an audit shall not excuse or delay Tenant’s obligation to
timely pay the Excess Expenses, If Tenant’s audit reveals a discrepancy, Landlord shall refund the
overpayment to Tenant or Tenant shall pay an underpayment to Landlord, each within 30 days of
receipt of notice of the completion f Tenant’s audit. If the audit reveals a discrepancy in excess
of 5%, Landlord shall pay the reasonable cost of the audit. Tenant shall keep all information
obtained through an audit strictly confidential.

               (5) Notwithstanding anything to the contrary in this Paragraph 6, the rental payable by Tenant
shall in no event be less than the rental specified in Paragraph 5 hereof.

     7. SECURITY DEPOSIT. Tenant has deposited with Landlord the Security Deposit
designated in Paragraph 1. Said sum shall be held by Landlord as security 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 provisions of
this Lease, including but not limited to the provisions relating to the payment of rent, 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 rent or any other sum in default, or for the payment of any other amount
which Landlord may spend or become obligated to spend by reason of Tenant’s default or to
compensate Landlord for any 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
demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit
to its original amount and Tenant’s failure to do so shall be a material breach of this Lease.
Landlord shall not be required to keep this Security Deposit separate from its general funds, and
Tenant shall not be entitled to interest on such Security Deposit. If Tenant shall fully and
faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any
balance thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of
Tenant’s interests hereunder) at the expiration of the Lease term, provided that Landlord may
retain one-half of the Security Deposit until such time as any amount due from Tenant in accordance
with Paragraph 5 hereof has been determined and paid in full. Should Landlord sell its interest in
the Premises during the term hereof and if Landlord deposits with the purchaser

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thereof the then unappropriated funds deposited by Tenant as aforesaid, thereupon Landlord
shall be discharged from any further liability with respect to such Security Deposit.

     8. USE OF PREMISES; COMPLIANCE WITH LAWS AND REGULATIONS.

          (a) Tenant shall use the Premises for office purposes limited to executive, administrative and
professional offices, and shall not use or permit the Premises to be used for any other purpose.
Medical or dental offices, retail facilities or sales offices, and similar customer/patient related
offices are specifically excluded. Tenant shall not use or operate the Premises in any manner that
will cause the Building or any part thereof not to conform with Landlord’s sustainability practices
or the certification of the Building issued pursuant to the U.S. Green Building Council’s
Leadership in Energy and Environmental Design (LEED) rating system or such other rating system
applicable to the Building from time to time.

          (b) Tenant shall comply with all laws, ordinances, orders, regulations, rules, resolutions and
other governmental requirements relating to the use, condition or occupancy of the Premises which
may now or hereafter be in force, including, without limitation, the Americans with Disabilities
Act of 1990, and applicable Environmental Laws as defined herein (collectively, the
“Laws”). The cost of compliance with any of the Laws (including, without limitation,
capital expenditures) shall be borne by Tenant. Tenant shall not use or occupy the Premises in
violation of any Law or of the certificate of occupancy issued for the Building of which the
Premises are a part, and shall, upon five (5) days’ written notice from Landlord, discontinue any
use of the Premises which is declared by any governmental authority having jurisdiction to be a
violation of Law or of the certificate of occupancy. Tenant shall not use or occupy the Premises
in any manner which is: (i) potentially injurious to the public health, safety or welfare, the
environment or the Premises; or (ii) in a manner which creates a basis for liability of Landlord to
any governmental agency or third party under any applicable statute or common law theory including,
but not limited to, Environmental Laws. Tenant shall comply with any direction of any governmental
authority having jurisdiction which shall, by reason of the nature of Tenant’s use or occupancy of
the Premises, impose any duty upon Tenant or Landlord with respect to the Premises or with respect
to the use or occupation thereof. Tenant shall not do or permit to be done anything which will
invalidate or increase the cost of any fire, extended coverage or any other insurance policy
covering the Building and/or property located therein and shall comply with all rules, orders,
regulations and requirements of the Pacific Fire Rating Bureau or any other organization performing
a similar function. Tenant shall promptly upon demand reimburse Landlord as additional rent for
any additional premium charged for such policy by reason of Tenant’s failure to comply with the
provisions of this Paragraph 8. Tenant shall not do or permit anything to be done in or about the
Premises which will in any way obstruct or interfere with the rights of other tenants or occupants
of the Building, 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. Tenant shall not commit or suffer to be committed any waste in or
upon the Premises and shall keep the Premises in first class repair and appearance.

          (c) Tenant shall comply with all federal, state and local laws, ordinances, rules and
regulations relating to environmental protection or the use, analysis, generation, treatment,
handling, storage, disposal, release, threatened release or transportation of any

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Hazardous Materials (as hereinafter defined) including, but not limited to Environmental Laws.
Tenant shall not cause or permit any Hazardous Materials to be brought upon, kept, used,
generated, treated, handled, released, stored or disposed in, on, under or about the Building or
Premises by Tenant, its agents, employees, contractors, licensees or invitees, without the prior
written consent of Landlord. The term “Hazardous Materials” as used in this Lease includes
any hazardous, toxic, contaminated or polluting substance, material or waste which is regulated by
any local governmental authority or special district, the State of California or the United States
Government, including any material, contaminant, pollutant, or substance which is: (i) designated
as a “hazardous waste,” “hazardous material,” “hazardous substance,” “extremely hazardous waste” or
“restricted hazardous waste”; (ii) flammables or explosives; (iii) petroleum or petroleum products;
(iv) asbestos; (v) polychlorinated biphenyls (“PCB”), or PCB-containing materials; (vi) radioactive
materials; or (vii) materials or chemicals stated to be known to cause cancer or reproductive
toxicity. In addition, the term “Hazardous Materials” shall also include those materials
and substances which are deemed to be hazardous under applicable case law and/or common law
theories including, without limitation, theories of nuisance and tort liability. Notwithstanding
the foregoing, Tenant may, without Landlord’s prior consent, use any ordinary and customary
materials reasonably required to be used by Tenant in the normal course of Tenant’s office
operation on the Premises, so long as such use is in compliance with this Lease, all applicable
Laws, and does not expose the Building, Property, Premises or any neighboring properties to any
material risk of contamination or damage or expose Landlord to any liability therefor. Landlord
makes no representation or warranty as to the presence of Hazardous Materials in, on, under, or
emanating from or to the Building or Premises. Landlord has received no written notice of any
Building or Premises violation of any applicable Laws regarding Hazardous Materials.
“Environmental Laws” shall mean all federal, state and local laws, statutes, ordinances,
codes, rules, regulations, standards, orders and requirements pertaining to Hazardous Materials,
including the handling and exposure to Hazardous Materials, and/or environmental conditions in, on,
under or about the Premises, the Property, or the Building, including soil and groundwater
conditions, whether now in effect or which may hereafter come into effect, including but not
limited to, the Comprehensive Environmental Response, Compensation, and Liability Act
(“CERCLA”) (42 U.S.C. 9601 § et seq.); the Resource Conservation and Recovery Act
(“RCRA”) (42 U.S.C. § 6901 et seq.); the California Hazardous Waste Control Act
(“HWCA”) (Cal. Health & Safety Code § 25100 et seq.); and the California Hazardous
Substance Account Act (“HSAA”) (Cal. Health & Safety Code § 25300 et seq.).

          (d) Landlord shall be responsible for any structural alterations, and nonstructural
alterations in portions of the Building or the parcel on which the Building is situated which are
not reserved for the exclusive use of any tenant, and any equipment changes required by any Laws.
The expense of Landlord’s compliance with Laws shall be a Direct Expense, all of which shall be an
expense in the year when Landlord makes the alteration or equipment change; provided, however, that
in the case of capital improvements, the currently amortized portion shall be a Direct Expense
during the year when Landlord makes the alteration or equipment change and the balance of the
amortization shall be a Direct Expense in subsequent years. As an exception to the foregoing, if
any alterations are required to the Building or the parcel on which the Building is located as a
result of any alterations or equipment changes made to the Premises by or on behalf of Tenant, then
Tenant shall be responsible for the cost of the alterations to the Building or the parcel or the
equipment changes.

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          (e) The Building is certified under the U.S. Green Building Council’s Leadership in Energy and
Environmental Design (LEED) rating system or operated pursuant to Landlord’s sustainable building
practices. All construction, maintenance and recycling and waste management methods and
procedures, material purchases and disposal of waste must be in compliance with minimum standards
and specifications (including, without limitation, the standards and specifications set forth in
Exhibits A-4 (Construction Waste Management), A-5 (LEED Requirements and A-6 (Construction Indoor
Air Quality), as the same may change from time to time), in addition to all applicable laws.

     9. PAYMENTS AND NOTICES. All rents and other sums payable by Tenant to Landlord
hereunder shall be paid to Landlord at the address designated by Landlord in Paragraph 1 above or
at such other places as Landlord may hereafter designate in writing. Any notice required or
permitted to be given hereunder must be in writing and may be given by personal delivery or by mail
or by receipt confirmed facsimile transmission, provided a copy is also delivered by personal
delivery or mail. Notices given by mail shall be deemed sufficiently given if sent by registered
or certified mail addressed to Tenant at the Building of which the Premises are a part, or to
Landlord at its address designated in Paragraph 1. Either party may by written notice to the other
specify a different address for notice purposes except that Landlord may in any event use the
Premises as Tenant’s address for notice purposes. If more than one tenant is named under this
Lease, service of any notice upon any one of said Tenants shall be deemed as service upon all of
said tenants. Notwithstanding any provisions hereof to the contrary, notices required by law
regarding unlawful detainer and other legal proceedings need be given only in the manner required
by law. Notices personally delivered hereunder shall be deemed given when delivered and notices
mailed hereunder shall be deemed given on the third calendar day after deposit in the United States
Mail. Notices transmitted by facsimile shall be deemed delivered upon telephone confirmation or
receipt thereof.

     10. BROKERS. The parties recognize that the brokers who negotiated this Lease are the
brokers whose names are stated in Paragraph 1. Landlord agrees to pay a leasing commission per
Landlord’s separate agreement with Landlord’s Broker. Landlord’s Broker shall then pay a leasing
commission to Tenant’s Broker in an amount equal to six percent (6%) of the total rental value
payable by Tenant for the first sixty (60) rent-paying months of the Term within thirty (30)
business days following the full execution of this Lease. Tenant and Landlord each represent and
warrant to each other that no other broker has represented either of them or is otherwise entitled
to a commission or fee in connection with the transactions contemplated in this Lease. Each party
hereby indemnifies, defends and holds the other party harmless from all loss, cost and expense
(including reasonable attorneys’ fees) arising out of a breach of its representation set forth in
this Paragraph 10. The provisions of this Paragraph 10 shall survive the termination of the Lease.

     11. HOLDING OVER. Tenant may only hold over after the expiration or earlier
termination of the term hereof with the express prior written consent of Landlord. Acceptance of
rent is not Landlord’s consent to holdover. Without Landlord’s express consent Tenant shall become
a tenant at sufferance only at a rental rate equal to one hundred fifty percent (150%) of the rent
in effect upon the date of such expiration (subject to adjustment as provided in Paragraph 6 hereof
and prorated on a daily basis). Acceptance by Landlord of rent after such expiration or earlier
termination shall not constitute a holdover hereunder or result in a renewal.

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The foregoing provisions of this Paragraph 11 are in addition to and do not affect Landlord’s
right of re-entry or any rights of Landlord hereunder or as otherwise provided by law. If Tenant
fails to surrender the Premises upon the expiration of this Lease, Tenant shall indemnify, protect,
defend and hold Landlord harmless from all loss or liability, including without limitation, any
claim made by any succeeding tenant founded on or resulting from such failure to surrender. Such
indemnity shall survive the expiration of this Lease.

     12. TAXES ON TENANT’S PROPERTY. Tenant shall be liable for and shall pay 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 upon such increased assessments,
which Landlord shall have the right to do regardless of the validity thereof, but only under proper
protest if requested by Tenant, Tenant shall upon demand repay to Landlord the taxes levied against
Landlord, or the proportion of such taxes resulting from such increase in the assessment; provided
that in any such event at Tenant’s sole cost and expense, 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 any such taxes so paid under protest, any amount so recovered
to belong to Tenant.

     13. CONDITION OF PREMISES. At Landlord’s sole cost and expense, Landlord shall
provide new Building standard carpet and paint throughout the interior of the Premises, in colors
mutually acceptable to Landlord and Tenant. Additionally, Landlord will provide to Tenant a Tenant
Improvement Improvement/Moving allowance in the amount of five dollars ($5.00) per usable square
foot (the “Tenant Allowance”) which shall be paid by Landlord no earlier than Lease
commencement on receipt of Tenant’s invoice. Except as provided above in this Section 13, the
Premises shall be delivered by Landlord and accepted by Tenant in their “as-is” condition;
provided that Landlord warrants that all existing lights, HVAC, electrical and base operating
features and systems within the Premises shall be in good working order as of the Commencement Date
and delivery of the Premises to Tenant. Tenant acknowledges that neither Landlord nor any agent of
Landlord has made any representation or warranty with respect to the condition of the Premises or
the Building or with respect to the suitability of either for the conduct of Tenant’s business.
The taking of possession of the Premises by Tenant shall establish that the Premises and the
Building were at such time in satisfactory condition and that Tenant has accepted the condition of
the Premises and the Building in their “as-is” condition. Notwithstanding the foregoing, to
Landlord’s current, actual knowledge (without duty of investigation or further inquiry), the
Premises were constructed in accordance with applicable laws then in effect. Landlord has received
no written notice of any pending or threatened action or proceeding relating to a violation of any
law, including the Americans with Disabilities Act (“ADA”) governing the Premises.
Landlord indemnifies Tenant with respect to ADA compliance of the Building, but only with respect
to common area portions thereof.

     14. ALTERATIONS.

          (a) Tenant shall make no alterations, additions or improvements in or to the Premises
(collectively, “Alterations”) without Landlord’s prior written consent, and then only by

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a contractor, engineer or mechanic designated or approved by Landlord. Landlord may withhold
its consent to such Alterations in its sole discretion if the proposed Alterations would adversely
affect the structure or safety of the Building or its electrical, plumbing, HVAC, mechanical or
safety systems; in all other circumstances, Landlord agrees not to unreasonably withhold its
consent to proposed Alterations. Tenant agrees that there shall be no construction of partitions
or other obstructions which might interfere with Landlord’s free access to mechanical installations
or service facilities serving the Building or the moving of Landlord’s equipment to or from the
enclosures containing said installations or facilities or proper sprinkler coverage in the
Premises. All such work shall be done at such times and in such manner as Landlord may from time
to time designate. Tenant covenants and agrees that all work done by Tenant or at Tenant’s request
shall be performed in full compliance with all Laws, and in full compliance with the rules, orders,
directions, regulations and requirements of the Pacific Fire Rating Bureau, or of any similar body.
All such Alterations must conform to (and Tenant will comply with) the Building’s then-existing
standards and requirements for (1) Tenant Improvements, (2) Construction Waste Management, (3) LEED
Requirements and (4) Construction Indoor Air Quality (such standards are, as of the execution
hereof, respectively set forth in Exhibits A-3, A-4, A-5 and A-6 attached hereto, but are subject
to modification from time to time). Tenant shall pay Landlord all reasonable costs incurred by
Landlord in connection with the proposed Alterations (including, but not limited to, costs incurred
in reviewing the plans and specifications therefor and in administering or managing the
construction of the Alterations); at Landlord’s option and prior to the commencement of the
Alterations, Tenant shall deposit with Landlord the estimated cost of the foregoing along with the
cost of making any alterations to the Building or the parcel if such costs are Tenant’s expense
pursuant to Subparagraph 8(d) above, it being agreed that any surplus shall be returned to Tenant
following the completion of the Alterations in compliance with this Subparagraph 14(a). Neither
Landlord’s approval or supervision of any Alterations, nor Landlord’s designation or recommendation
of any contract or supplier in connection therewith, shall be deemed a warranty as to the design,
workmanship, or quality of materials or the compliance of the Alterations with any governmental
requirements. Before commencing any work, Tenant shall give Landlord at least five (5) days’
written notice of the proposed commencement of such work and shall, if required by Landlord, secure
at Tenant’s own cost and expense, a completion and lien indemnity bond, satisfactory to Landlord,
for said work. Tenant further covenants and agrees that any mechanic’s lien filed against the
Premises or against the Building 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 the filing thereof, at the cost and expense of Tenant. All alterations, decorations,
additions or improvements upon the Premises, made by either party including (without limiting the
generality of the foregoing) all wall covering, built-in cabinet work, paneling and the like,
shall, unless Landlord elects otherwise, become the property of Landlord, and shall remain upon,
and be surrendered with the Premises, as a part thereof, at the end of the term hereof, except that
Landlord may, by written notice to Tenant, given when the Alterations are approved by Landlord,
require Tenant to remove all partitions, counters, railings and the like installed by Tenant, and
Tenant shall repair any damage
 to the Premises arising from such removal or, at Landlord’s option,
shall pay to the Landlord the reasonable costs of such removal and repair.

          (b) All articles of personal property and all business and trade fixtures, machinery and
equipment, cabling, furniture and movable partitions owned by Tenant or installed by Tenant at its
expense in the Premises shall be and remain the property of Tenant and

14

 

may be removed by Tenant at any time during the lease term provided Tenant is not in default
hereunder, and provided further that Tenant shall repair any damage caused by such removal. Tenant
shall dispose of in an environmentally sustainable manner any equipment, furnishings, or materials
no longer needed by Tenant and shall recycle or re-use in accordance with Landlord’s sustainability
practices. Tenant is responsible for reporting this activity to Landlord in a format determined by
Landlord. If Tenant shall fail to remove all of its effects from said Premises upon termination of
this Lease for any cause whatsoever, Landlord may, at its option, remove the same in a reasonable
manner that Landlord shall choose, and store said effects without liability to Tenant for loss
thereof, and Tenant agrees to pay Landlord upon demand any and all expenses incurred in such
removal, including court costs and attorneys’ fees and storage charges on such effects for any
length of time that the same shall be in Landlord’s possession, or Landlord may, at its option,
without notice, sell said effects, or any of the same, at private sale and without legal process,
for such reasonable price as Landlord may obtain and apply the proceeds of such sale upon any
amounts due under this Lease from Tenant to Landlord and upon the expense incident to the removal,
storage and sale of said effects. Landlord and Tenant agree that the obligations and rights set
forth in this Subparagraph 14(b) shall survive the expiration or earlier termination of this Lease.

          (c) Landlord reserves the right at any time and from time to time, without the same
constituting an actual or constructive eviction and without incurring any liability to Tenant
therefor or otherwise affecting Tenant’s obligations under this Lease, to make such changes,
alterations, additions, improvements, repairs or replacements in or to the Building (including the
Premises if required so to do by any Law) and the fixtures and equipment thereof, as well as in or
to the street entrances, halls, passages and stairways thereof, to change the name by which the
Building is commonly known, as Landlord may deem necessary or desirable. Nothing contained in this
Subparagraph 14(c) shall be deemed to relieve Tenant of any duty, obligation or liability of Tenant
with respect to making any repair, replacement or improvement or complying with any Law and nothing
contained in this Subparagraph 14(c) shall be deemed or construed to impose upon Landlord any
obligation, responsibility or liability whatsoever, for the care, supervision or repair of the
Building or any part thereof other than as otherwise provided in this Lease.

          (d) Notwithstanding anything to the contrary in this Lease, with Landlord’s prior written
consent and subject to the requirements set forth herein, Tenant may, at its sole cost and expense,
(i) connect or obtain data/voice telecommunications services from the Building communications
closet (the “Main Point of Entry”); (ii) connect or install cabling or wiring for an
interior network or an intermediate distribution facility from the Main Point of Entry; or (iii)
connect or install cabling or wiring for any other purpose in the Premises. Tenant shall be
responsible for all data/voice, telecommunications, interior network, or computer cabling or wiring
which are located in the Premises or which exclusively serve the Premises from the Main Point of
Entry, whether or not installed by Tenant (collectively, the “Cabling”). Prior to such
installation or connection, Tenant shall submit (x) a detailed description and diagram of the work
or Alterations (the “Wiring Floor Plan”) to Owner, which shall include the specifications,
location, and connection to the Main Point of Entry, any preexisting Cabling, and/or Building
facilities (y) any proposed penetrations in firewalls and (z) the proposed cabling contractor.
Tenant agrees that all Cabling installed pursuant to the Wiring Floor Plan and all necessary and
related data/voice equipment shall be installed, configured, maintained, and, at end of Lease Term,
removed by a licensed reputable contractor at Tenant’s sole expense. Landlord shall have

15

 

no liability or responsibility for any direct, indirect, incidental or consequential damages
including, but not limited to, damages from loss of profits or loss of data resulting from failure
of cabling infrastructure or network hardware provided by Landlord. Such Alterations and work
required in the Wiring Floor Plan shall comply with this Paragraph 14. The Wiring Floor Plan shall
become Exhibit A-7 and shall be attached and incorporated herein at such time when Landlord
receives and approves such Wiring Floor Plan.

          (e) Satellite Dish.

               (1) Permission. Subject to the terms and conditions contained in Section 14 of the
Lease regarding Alterations, Tenant shall have the right, at its sole cost, to cause to be placed,
on the roof of the Building a satellite dish not to exceed 42” in diameter for the purpose of
receiving communications signals (the “Dish”). Other than the equipment described in the
foregoing sentence and depicted on Exhibit C to this Lease, Tenant shall not erect, construct,
place or permit any television, radio, telecommunications or other electronic towers, aerials,
antennas, satellite dishes or devices of broadcast or reception or other means of communication on
the Premises or Building without Landlord’s prior written consent, which consent may be withheld at
Landlord’s sole and absolute discretion.

               (2) Installation. Tenant shall utilize existing roof penetrations and is responsible
for ensuring that the Dish will not void or limit any warranty or guaranty with respect to the roof
of the Building. Tenant shall reimburse Landlord for all costs and expenses incurred by Landlord
as a result of any such impairment of such warranty or guaranty upon demand. Any work involving
penetration of the roof or any walls or parapets may, at the option of Landlord, be done by
Landlord’s contractors at Tenant’s cost, notwithstanding any contrary provision in this Lease, and
Tenant shall pay any amount invoiced by Landlord for the costs of such construction within 10 days
after being billed therefore by Landlord. Tenant’s plans shall include appropriate provision to
reasonably shield the Dish from view from the publicly accessible areas of the Building so that the
height of the Dish shall not be visible above the main parapet of the Building. Tenant shall
indemnify, defend, and hold harmless Landlord from any and all liability associated with the
construction, placement, location, or operation of the Dish and any matter arising from the Dish.

               (3) Interference. On or prior to the date the Dish is made operational, Tenant shall
provide such evidence as Landlord reasonably requires that the operation of the Dish will not
interfere with the communications equipment maintained by Landlord or any other tenant of the
Building or any user or occupant of any property in the immediate area of the Building. Tenant
shall maintain the Dish in accordance with good commercial practice for operators of similar
equipment, in a manner that does not materially increase the risk of liability to Landlord and
shall periodically and in accordance with the sound practices of operators of similar equipment,
test the Dish to insure that it is operating within the parameters of the specifications of the
manufacturer of the equipment.

               (4) Removal. Landlord may require, in connection with Tenant’s vacation of the
Premises after the expiration or earlier termination of the Term of this Lease or after any
default, that Tenant remove the Dish. If such removal is required, then either (i) Landlord’s
contractors shall perform such removal and charge the cost to Tenant or (ii) if

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Tenant
performs such removal, Tenant shall at its sole cost restore the roof of the Building to the
condition of the roof prior to the installation of the Dish. Notwithstanding the foregoing, Tenant
shall not have the right to perform the work itself if the Lease is terminated after a default. If
at any time, Landlord notifies Tenant that the Dish is interfering with any equipment installed by
Landlord or any other tenant of the Project, Tenant agrees to take all steps necessary to resolve
such interference. Except as expressly provided in this Section, Tenant shall have no right to
enter onto the roof of the Building.

               (5) If any such equipment provides services for parties other than Tenant, the area of the
roof upon which such equipment is located shall have a Rental Rate assigned and rent shall be
payable by Tenant with respect thereto.

          (f) Any and all Tenant Improvement work and/or Alterations will be performed in accordance
with Landlord’s sustainability practices, including the standards and specifications set forth in
Exhibits A-4 (Construction Waste Management), A-5 (LEED Requirements), A-6 (Construction Indoor Air
Quality) and any third-party rating system concerning the environmental compliance of the Building
or the Premises, as the same may change from time to time. Tenant further agrees to engage a
qualified third party LEED or similarly qualified professional during the design phase through
implementation of any Tenant Improvement work and/or Alterations to review all plans, material
procurement, demolition, construction and waste management procedures to ensure they are in full
conformance to Landlord’s sustainability practices, as aforesaid.

     15. REPAIRS.

          (a) By taking possession of the Premises, Tenant shall have accepted the Premises as being in
good and sanitary order, condition and repair. Tenant shall, when and if needed or whenever
requested by Landlord to do so, at Tenant’s sole cost and expense, make all repairs to the Premises
and every part thereof, including all windows and doors, to keep, maintain and preserve the
Premises in first class condition and repair. Tenant shall upon the expiration or sooner
termination of the term hereof surrender the Premises to Landlord in the same condition as when
received, reasonable and ordinary wear and tear thereof excepted. Except as provided in
Subparagraph 15(b) hereof, Landlord shall have no obligation to alter, remodel, improve, repair,
decorate or paint the Premises or any part thereof, the Building or the common areas, and the
parties hereto affirm that Landlord has made no representations to Tenant respecting the condition
of the Premises or the Building.

          (b) Notwithstanding anything to the contrary contained in Subparagraph 15(a) above, Landlord
shall repair and maintain the common areas described in Subparagraph 2(b) and the structural
portions of the Building, including without limitation the roof, foundation, exterior walls, basic
plumbing, heating, ventilating, air conditioning and electrical systems installed or furnished by
Landlord. If the maintenance and repairs are caused in part or in whole by the act, neglect, fault
of or omission of any duty by Tenant, its agents, contractors, employees, licensees or invitees,
Tenant shall pay to Landlord, as additional rent, the reasonable cost of such maintenance and
repairs. Landlord shall not be liable for any failure to make any such repairs or to perform any
maintenance unless such failure shall persist for an unreasonable time after written notice of the
need of such repairs or maintenance is given to Landlord by Tenant. Except

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as provided in Paragraph 23 hereof there shall be no abatement of rent and no liability of
Landlord by reason of any injury to or interference with Tenant’s business arising from the making
of any repairs, alterations or improvements in or to any portion of the Building or the Premises or
in or to fixtures, appurtenances and equipment therein. Tenant hereby waives California Civil Code
Sections 1932(1), 1941 and 1942 and any other applicable existing or future law, ordinance or
governmental regulation permitting Tenant to make repairs at Landlord’s expense.

               (c) Anything to the contrary in Subparagraphs 15(a) and (b) above notwithstanding, Tenant, at
Tenant’s sole cost and expense, shall make any and all improvements, changes, maintenance or
repairs to the Premises, which are required for compliance with Laws.

               (d) Tenant acknowledges that Landlord shall have no obligation to maintain, repair, replace or
remove the Cabling. Tenant shall be solely responsible for maintaining the Cabling; provided,
however, that Tenant may, at Tenant’s expense, contract with SBC or another reputable licensed
contractor approved by Landlord to maintain the Cabling, provided, however, that Landlord, at
Landlord’s option and upon thirty (30) days’ notice to Tenant, may undertake the responsibility for
the maintenance of some or all of the Cabling, in which event, the cost of such maintenance may be
included as a “Direct Expense” under Subparagraph 6(a) above.

               (e) All maintenance and repairs made by Tenant must comply with Landlord’s sustainability
practices, including the standards and specifications set forth in Exhibits A-4 (Construction Waste
Management), A-5 (LEED Requirements and A-6 (Construction Indoor Air Quality) and any third-party
rating system concerning the environmental compliance of the Building or the Premises, as the same
may change from time to time.

          16. LIENS. Tenant shall not permit any mechanic’s, materialman’s or other liens to be
filed against the real property of which the Premises form a part nor against the Tenant’s
leasehold interest in the Premises. Landlord shall have the right at all reasonable times to post
and keep posted on the Premises any notices which it deems necessary for protection from such
liens. If any such liens are filed, and Tenant does not remove such liens within ten (10) days
after written notice by Landlord to tenant, then Landlord may, without waiving its rights and
remedies based on such breach of Tenant and without releasing Tenant from any of its obligations,
cause such liens to be released by any means it shall deem proper, including without limitation
payment in satisfaction of the claim giving rise to such lien. Tenant shall pay to Landlord, at
once upon notice by Landlord, any sum paid by Landlord to remove such liens, together with interest
at the maximum rate per annum permitted by law from the date of such payment by Landlord.

          17. ENTRY BY LANDLORD. Landlord reserves and shall have the right to enter the
Premises to inspect the same, to supply janitor service and any other service to be provided by
Landlord to Tenant hereunder, to submit said Premises to prospective purchasers or tenants, to post
notices of nonresponsibility, to alter, improve or repair the Premises or any other portion of the
Building, and/or to perform any acts required of but not done by Tenant as provided in Paragraph 35
hereof, all without being deemed guilty of any eviction of Tenant and without abatement of rent,
and may, in order to carry out such purposes, erect scaffolding and other

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necessary structures where reasonably required by the character of the work to be performed,
provided that the business of Tenant shall be interfered with as little as is reasonably
practicable. Landlord shall use commercially reasonable efforts to coordinate its entry and work
in the Premises with Tenant in order to not unreasonably interfere with Tenant’s business
operations. Tenant hereby waives any claim for damages for any injury or inconvenience to or
interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and
any other loss occasioned thereby. For each of the aforesaid purposes, Landlord shall at all times
have and retain a key with which to unlock all of the doors in, upon or about the Premises,
excluding Tenant’s vaults and safes, and Landlord shall have the right to use any and all means
which Landlord may deem proper to open said doors in an emergency in order to obtain entry to the
Premises, and any entry to the Premises obtained by Landlord by any of said means, or otherwise,
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 of Tenant from the Premises or any portion thereof,
and any damages caused on account thereof shall be paid by Tenant. It is understood and agreed
that no provision of this Lease shall be construed as obligating Landlord to perform any repairs,
alterations or decorations except as otherwise expressly agreed herein to be performed by Landlord.

     18. UTILITIES AND SERVICES.

          (a) Provided that Tenant is not in default hereunder, Landlord agrees to furnish to the
Premises during Business Hours subject to the conditions of and in accordance with the standards
set forth in writing by Landlord from time to time during the term of this Lease and delivered to
Tenant, reasonable quantities of electric current for normal lighting and fractional horsepower
office machines, water for lavatory and drinking purposes, heat and air conditioning required in
Landlord’s judgment for the comfortable use and occupation of the Premises, janitorial service
(standard service provided five (5) days a week) and elevator service by non-attended automatic
elevators. Landlord reserves the right to change electricity providers at any time and to purchase
green or renewable energy. Tenant acknowledges and agrees that Landlord may impose a reasonable
charge for the use of any additional or unusual janitorial services required by Tenant’s
carelessness or the nature of Tenant’s business. Landlord’s obligation regarding any heating,
ventilation and air conditioning (“HVAC”) and electrical systems shall be limited to the
Building’s standard central HVAC and electrical systems, and Landlord shall have no obligation to
maintain or repair any HVAC or electrical system that has been installed to accommodate Tenant’s
specific use of the Premises (provided, however, that any contractor retained by Tenant to maintain
or repair any such HVAC or electrical system shall be subject to Landlord’s reasonable approval).
Landlord shall not be obligated to service, maintain, repair or replace any system or improvement
in the Premises that has not been installed by Landlord at Landlord’s expense, or which is a
specialized improvement requiring additional or extraordinary maintenance or repair (by way of
example only, if the standard premises in the Building contain fluorescent light fixtures,
Landlord’s obligation shall be limited to the replacement of fluorescent light tubes, irrespective
of any incandescent fixtures that may have been installed in the Premises at Tenant’s expense).
Landlord shall not be liable for, and Tenant shall not be entitled to any abatement or reduction of
rent by reason of Landlord’s failure to furnish any of the foregoing when such failure is caused by
accident, breakage, repairs, strikes, lockouts or other labor disturbances or labor disputes of any
character, acts of terrorism or events of national emergency or for any other causes. Tenant
hereby waives the provisions of

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California Civil Code Section 1932(1) or any other applicable existing or future law,
ordinance or governmental regulation permitting the termination of this Lease due to the
interruption or failure of any services to be provided under this Lease. If Tenant requires or
utilizes more water or electric power than is considered reasonable or normal by Landlord, Landlord
may at its option require Tenant to pay, as additional rent, the cost, as fairly determined by
Landlord, incurred by such extraordinary usage. In addition, Landlord may install separate
meter(s) for the Premises, at Tenant’s sole expense, and Tenant thereafter shall pay all charges of
the utility providing service.

          (b) If the temperature otherwise maintained in any portion of the Premises by the HVAC systems
of the Building is affected by reason of any lights, machines or equipment used by Tenant in the
Premises, or by the occupancy of the Premises by more persons than are contemplated by the design
criteria of the HVAC systems, then Landlord shall have the right to install machines or equipment
that Landlord reasonably deems necessary to restore temperature balance, including modifications to
the standard air-conditioning equipment and electrical systems serving the Premises. The cost of
any such equipment and modifications, including the cost of installation and any additional cost of
operation and maintenance of the same, shall be paid by Tenant to Landlord upon demand.

          (c) Tenant acknowledges and agrees that Tenant’s use of the Premises outside the generally
recognized business days and hours for the Building (the “Business Hours”) will impose an
additional burden on Building services such as janitorial service, elevator service, fluorescent
tube replacement and HVAC service, the cost of which services shall be paid to Landlord by Tenant
as “after hours rent” upon demand. Landlord’s Business Hours shall be Monday through Friday, 7:00
A.M. — 6:00 P.M., Saturday, 8:00 A.M. — 1:00 P.M. national and state holidays excepted.
Notwithstanding the first sentence of Subparagraph 18(a), such services are available twenty-four
(24) hours per day subject to the charge. The current charge for “after hours” HVAC services as of
Lease Commencement is $25.00 per hour per unit activated. Tenant acknowledges such “after hours”
charge is subject to change upon advance written notice to Tenant.

     19. BANKRUPTCY. If Tenant shall file a petition in bankruptcy under any Chapter of
the Bankruptcy Act as then in effect, or if Tenant be adjudicated a bankrupt in involuntary
bankruptcy proceedings and such adjudication shall not have been vacated within sixty (60) days
from the date thereof, or if a receiver or trustee be appointed of Tenant’s property and the order
appointing such receiver or trustee not be set aside or vacated within thirty (30) days after the
entry thereof, or if the Tenant shall assign Tenant’s estate or effects for the benefit of
creditors, or if this Lease shall otherwise by operation of law devolve or pass to any person or
persons other than Tenant, then and in any such event Landlord may, if Landlord so elects, with or
without notice of such election and with or without entry or action by Landlord, forthwith
terminate this Lease, and notwithstanding any other provisions of this Lease, Landlord, in addition
to any and all rights and remedies allowed by law or equity, shall upon such termination be
entitled to recover damages in the amount provided in Subparagraph 25(b) below and neither Tenant
nor any person claiming through or under Tenant or by virtue of any statute or order of any court
shall be entitled to possession of the Premises but shall forthwith quit and surrender the Premises
to Landlord. Nothing herein contained shall limit or prejudice the right of Landlord to prove and
obtain as damages by reason of any such termination an amount equal to the maximum allowed

20

 

by any statute or rule of law in effect at the time when, and governing the proceedings in
which, such damages are to be proved, whether or not such amount be greater, equal to, or less than
the amount of damages recoverable under the provisions of this Paragraph 19.

     20. INDEMNIFICATION. Tenant shall, during the entire term hereof and during any
rent-free period of prior occupancy, indemnify, defend, protect and hold harmless Landlord against
and from any and all claims arising from (i) Tenant’s use of the Premises or the conduct of its
business or from any activity, work, or thing done, permitted or suffered by Tenant in or about the
Premises, (ii) any breach or default in the performance of any obligation on Tenant’s part to be
performed under the terms of this Lease, (iii) the presence of, use, generation, possession,
transportation, handing, treatment, release, or disposal of Hazardous Materials in the Premises,
Property or Building caused or permitted to be caused by Tenant, or any party under Tenant’s
control, and/or (iv) any act, neglect, fault or omission of Tenant, or of its agents or employees,
or any party under Tenant’s control, and Tenant shall further indemnify, defend, protect and hold
harmless Landlord from and against all costs, attorneys’ fees, consultants’ fees, expenses and
liabilities incurred in or about any such claims or any action or proceeding brought thereon; and
in case any action or proceeding be brought against Landlord by reason of any such claim, Tenant
upon notice from Landlord shall defend the same at Tenant’s expense by counsel selected by Tenant
and reasonably approved in writing by Landlord. Tenant, as a material part of the consideration to
Landlord, hereby voluntarily assumes all risk of damage to property or injury or death to persons
in, upon or about the Premises from any cause whatsoever except that which is caused by Landlord’s
gross negligence, willful misconduct or failure to observe any of the terms and conditions of this
Lease and such failure has persisted for an unreasonable period of time after written notice of
such failure, and Tenant hereby waives all its claims in respect thereof against Landlord. The
provisions of this Paragraph 20 shall survive the termination of this Lease with respect to any
damage, injury or death occurring prior to such termination.

     21. DAMAGE TO TENANT’S PROPERTY. Except resulting from the gross negligence or
intentional misconduct of Landlord or its agents, Landlord or its agents shall not be liable for
any damage to property entrusted to employees of the Building, nor for loss of or damage to any
property by theft or otherwise, nor for any injury or damage to persons or property resulting from
fire, explosion, falling plaster, steam, contaminated air, gas, electricity, water or rain which
may leak from or flow into any part of the Building or from the breakage, leakage, obstruction or
other defects in any pipes, appliances, sprinklers, wires, HVAC, fixtures or plumbing works whether
the damage or injury results from conditions arising upon the Premises or upon other portions of
the Building or from other sources. Landlord shall not be liable for any damages arising from any
act or neglect of any other tenant or occupant of the Building, or of any employee, agent,
contractor, licensee or invitee of any such tenant or occupant. Tenant shall give prompt notice to
Landlord in case of fire or accidents in the Premises or in the Building or of defects therein or
in the fixtures or equipment.

     22. INSURANCE.

          (a) Tenant shall, during the entire term hereof and during any rent-free period or period of
prior occupancy, at its sole cost and expense, obtain, maintain and keep in full force and effect,
with Tenant, as the named insured, and Landlord, the mortgagees of Landlord, the fee owners of the
property if such fee owners are not Landlord and the property manager, named as

21

 

(i) additional insureds with regard to the liability insurance referenced in Subparagraph
22(a)(2) below, and (ii) loss payees as their respective interests may appear with respect to the
property insurance referenced in Subparagraph 22(a)(1) below:

               (1) Commercial property insurance covering loss or damage by fire and all other perils covered
on an ISO Causes of Loss Special Form, including wind, hurricane, sprinkler leakage, and vandalism
and malicious mischief endorsements, which insurance shall cover property of every description and
kind owned by Tenant and located in the Building or for which Tenant is legally liable or installed
by or on behalf of Tenant including, without limitation, Tenant Improvements, Alterations,
furniture, fittings, installations, fixtures, plate glass and any other personal property, in an
amount not less than the full replacement cost of the Tenant Improvements and/or Alterations
thereof. Such policy shall contain a per occurrence deductible of no greater than Five Thousand
Dollars ($5,000). In the event that there shall be a dispute as to the amount which comprises full
replacement cost, the decision of Landlord or the mortgagees of Landlord shall be conclusive.

               (2) Commercial General Liability insurance written on an ISO “occurrence” form or its
equivalent applying to the use and occupancy of the Premises, and the business operated by Tenant
or any other occupant. Such insurance shall include broad form contractual liability insurance
coverage insuring all of Tenant’s indemnity obligations under this Lease. Such coverage shall have
a minimum bodily injury and property damage combined single limit of liability of at least Two
Million Dollars ($2,000,000), and a general aggregate limit of at least Four Million Dollars
($4,000,000). The general aggregate limit shall apply exclusively to the Premises. All such
policies shall be written to apply to all bodily injury, property damage, personal injury and other
covered loss, however occasioned, arising out of Tenants use, occupancy, and maintenance in, upon
or about the Premises during the policy term, and shall be endorsed to provide that such coverage
shall be primary and that any insurance maintained by Landlord shall be excess insurance only.
Such coverage shall also contain endorsements or specific coverage to the extent such coverage is
included in the policy’s form: (i) deleting any employee exclusion on personal injury coverage;
(ii) including employees as additional insureds; (iii) deleting any liquor liability exclusion;
(iv) providing for coverage of employer’s automobile non-ownership liability; (v) adding fire legal
liability coverage of at least One Million Dollars ($1,000,000) per any one occurrence, subject to
a general aggregate limit of at least Two Million Dollars ($2,000,000); and (vi) deleting any
work/product exclusion, so that coverage will exist for damage resulting from work performed on the
Premises or the Building or common areas whether by Landlord, Tenant or contractors or
subcontractors working directly or indirectly for either; (vii) a specific endorsement insuring
Tenant’s indemnity obligations to Landlord pursuant to Paragraph 20, (viii) personal and
advertising injury of at least One Million Dollars ($1,000,000) per Person/Organization, subject to
a general aggregate limit of at least Two Million Dollars ($2,000,000), and (ix) blanket
contractual liability insurance. The insurance required by the foregoing provisions of this
Subparagraph 22(a)(2) shall provide for severability of interests; shall provide that an act or
omission of one of the named or additional insureds shall not reduce or avoid coverage to the other
named or additional insureds; and shall afford coverage for all claims based on acts, omissions,
injury and damage, which claims occurred or arose (or the onset of which occurred or arose) in
whole or in part during the policy period.

22

 

               (3) Business income and/or extra expense insurance in such amounts sufficient to insure
payment of rent and all other expenses to be borne by Tenant under this Lease, due to any
interruption of Tenant’s business by reason of the Premises or personal property being damaged by
fire or other perils covered on an ISO Causes of Loss — Special Form or its equivalent. In
addition, such coverage shall be written on an agreed amount Basis. Tenant acknowledges that it
assumes all risks of loss due to interruption of Tenant’s business by any cause.

               (4) Worker’s Compensation coverage for statutory limits required by law in California, and
employer’s liability insurance with limits of Five Hundred Thousand Dollars ($500,000) each
accident; Five Hundred Thousand Dollars ($500,000) disease — policy limit; and Five Hundred
Thousand Dollars ($500,000) each employee, and in a form satisfactory to Landlord.

               (5) Any other form or forms of insurance as Landlord or mortgagees of Landlord may reasonably
require from time to time in form, in amounts and for insurance risks against which a prudent
tenant would protect itself.

               (6) Umbrella or excess liability insurance is to be excess over the Commercial General
Liability, Automobile Liability and Employers’ Liability Insurance. The umbrella liability or
excess liability policy shall be written on an “occurrence” form with a limit of liability of Five
Million Dollars ($5,000,000) and a self-insured retention no greater than Ten Thousand Dollars
($10,000). Such policies shall name Landlord as an additional insured and shall be primary to any
insurance maintained by Landlord. The requirements contained in this Subparagraph 22(a)(6) may be
satisfied by increasing the limits otherwise required on the Tenant’s Commercial General Liability
policy to equal the sum of the limits required for both the Commercial General Liability policy and
the umbrella or excess policy.

          (b) All policies shall be taken out with insurers licensed to do business in California with a
current Best Rating acceptable to Landlord and in form satisfactory from time to time to Landlord.
Certificates of insurance evidencing all such insurance and acceptable to the Landlord shall be
filed with Landlord prior to occupancy of the Premises and at least ten (10) days prior to the
expiration of the term of each policy thereafter. Such certificates of insurance must specifically
show all the special policy conditions required in Subparagraph 22(a), including “additional
insured,” “waiver of subrogation,” “notice of cancellation,” and “primary insurance” wording
applicable to each policy. Alternatively, a certified, true and complete copy of each properly
endorsed policy may be submitted. All policies shall contain an undertaking by the insurers to
notify Landlord and the mortgagees of Landlord in writing not less than thirty (30) days prior to
any material change, reduction in coverage, cancellation, or other termination thereof. Tenant
shall furnish Landlord with proof of renewal or binders for new insurance at least thirty (30) days
before the expiration date of each policy.

          (c) In the event of damage to or destruction of the Building entitling Landlord to terminate
this Lease pursuant to Paragraph 23 hereof, if the Premises have also been damaged, Tenant will
immediately pay to Landlord all of its insurance proceeds relating to the Tenant Improvements and
Alterations in the Premises. If the Premises have not been damaged, Tenant

23

 

will deliver to Landlord, in accordance with the provisions of this Lease, the Tenant
Improvements, the alterations and the Premises.

          (d) Landlord covenants and agrees that throughout the term it will insure the Building and all
fixtures and equipment related thereto (excluding any property with respect to which Tenant is
obliged to insure pursuant to the provisions of Subparagraph 22(a) above) against damage by fire
and standard extended coverage perils and public liability insurance in such reasonable amounts
with such reasonable deductibles as would be carried by a prudent owner of a similar building in
the metropolitan area in which the Premises are located, but not less than the full replacement
cost thereof. Landlord may, but shall not be obliged to, take out and carry any other form or
forms of insurance as it or the mortgagees of Landlord may reasonably determine advisable.
Notwithstanding any contribution by Tenant to the cost of insurance premiums, as provided herein,
Tenant acknowledges that it has no right to receive any proceeds from any such insurance policies
carried by Landlord. Further, Tenant shall not settle any claim or accept any proceeds in
satisfaction of any claim involving damage to the Premises or liability of Landlord without
Landlord’s prior written consent. Landlord will not be required to (but may) carry insurance of
any kind on Tenant’s furniture or furnishings, or on any fixtures, equipment, improvements or
appurtenances of Tenant under this Lease; and Landlord shall not be obligated to repair any damage
thereto or replace the same.

          (e) Tenant agrees that it will not keep, use, sell or offer for sale in or upon the Premises
any article which may be prohibited by any insurance policy in force from time to time covering the
Building or any Tenant Improvements. In the event Tenant’s occupancy or conduct of business in or
on the Premises, whether or not Landlord has consented to the same, results in any increase in
premiums for the insurance carried from time to time by Landlord with respect to the Building,
Tenant shall pay any such increase in premiums as additional rent within ten (10) days after being
billed therefor by Landlord. In determining whether increased premiums are a result of Tenant’s
use or occupancy of the Premises, a schedule issued by the organization computing the insurance
rate on the Building or the Tenant Improvements showing the various components of such rate, shall
be conclusive evidence of the several items and charges which make up such rate. Tenant shall
promptly comply with all reasonable requirements of the insurance authority or of any insurer now
or hereafter in effect relating to the Premises.

          (f) If any insurance policy carried by Landlord, as provided in Subparagraph 22(d) above,
shall be canceled or cancellation shall be threatened or the coverage thereunder reduced or
threatened to be reduced, in any way by reason of the use of occupation of the Premises or any part
thereof by Tenant or by any assignee or sub-tenant of Tenant or by anyone permitted by Tenant to be
upon the Premises and, if Tenant fails to remedy the condition giving rise to cancellation,
threatened cancellation or reduction of coverage within forty-eight (48) hours after notice
thereof, Landlord may, at its option, either terminate this Lease or enter upon the Premises and
attempt to remedy such condition and Tenant shall forthwith pay the cost thereof to Landlord as
additional rent. Landlord shall not be liable for any damage or injury caused to any property of
Tenant or of others located in the Premises as a result of such entry. In the event that Landlord
shall be unable to remedy such condition, then Landlord shall have all of the remedies provided for
in this Lease in the event of a default by Tenant. Notwithstanding the foregoing provisions of
this Subparagraph 22(f), if Tenant fails to remedy as aforesaid, Tenant

24

 

shall be in default of its obligation hereunder and Landlord shall have no obligation to
attempt to remedy such default.

          (g) Any policy or policies of commercial general liability, worker’s compensation, fire,
extended coverage or similar casualty insurance, which either party obtains in connection with the
Premises shall include a clause or endorsement denying the insurer any rights of subrogation
against the other party to the extent rights have been waived by the insured prior to the
occurrence of injury or loss. Landlord and Tenant waive any rights of recovery against the other
for injury or loss due to hazards covered by insurance required under this Lease.

          (h) If the limits of available liability coverage required herein become substantially reduced
as a result of claim payments, Tenant shall immediately, at its own expense, purchase insurance to
reinstate the limits of liability coverage required by this Lease.

          (i) Landlord, its agents and employees make no representation that the limits of liability
specified to be carried by Tenant pursuant to this Paragraph 22 are adequate to protect Tenant. If
Tenant believes that any of such insurance coverage is inadequate, Tenant may obtain such
additional insurance coverage as Tenant deems adequate, at Tenant’s sole expense.

          (j) Landlord hereby reserves the right to make changes at any time to the insurance
requirements herein should new exposures be brought to light or new insurance products become
available during the term of this Lease. Tenant shall add as additional insureds to the insurance
policies required by this Paragraph 22 such other persons as Landlord may from time to time
reasonably require.

     23. DAMAGE OR DESTRUCTION.

          (a) In the event the Building and/or the Tenant Improvements are damaged by fire or other
perils covered by Landlord’s extended coverage insurance, Landlord shall:

               (1) In the event of total destruction, at Landlord’s option within a period of ninety (90)
days thereafter, commence repair, reconstruction and restoration of said Building and/or Tenant
Improvements and prosecute the same diligently to completion in which event this Lease shall remain
in full force and effect; or within said ninety (90)-day period elect not to so repair, reconstruct
or restore said Building and/or Tenant Improvements, in which event this Lease shall terminate. In
either event, Landlord shall give Tenant written notice of its intention within said ninety
(90)-day period. In the event Landlord elects not to restore said Building and/or Tenant
Improvements, this Lease shall be deemed to have terminated as of the date of such total
destruction.

               (2) In the event of a partial destruction of the Building and/or the Tenant Improvements, to
an extent not exceeding twenty-five percent (25%) of the full insurable value thereof and if the
damage thereto is such that the Building and/or the Tenant Improvements may be repaired,
reconstructed or restored within a period of ninety (90) days from the date of the happening of
such casualty and Landlord will receive insurance proceeds sufficient to cover the cost of such
repairs, Landlord shall commence and proceed diligently with the work of repair, reconstruction and
restoration and the Lease shall continue in full force and effect. If such work of repair,
reconstruction and restoration is such as to require a period longer than

25

 

ninety (90) days or exceeds twenty-five percent (25%) of the full insurable value thereof, or
if said insurance proceeds will not be sufficient to cover the cost of such repairs, Landlord
either may elect to so repair, reconstruct or restore and the Lease shall continue in full force
and effect or Landlord may elect not to repair, reconstruct or restore and the Lease shall in such
event terminate. Under any of the conditions of this Subparagraph 23(a)(2), Landlord shall give
written notice to Tenant of its intention within said ninety (90)-day period. In the event
Landlord elects not to restore said Building and/or Tenant Improvements, this Lease shall be deemed
to have terminated as of the date of such partial destruction.

          (b) Upon any termination of this Lease under any of the provisions of this Paragraph 23, the
parties shall be released thereby without further obligation to the other from the date possession
of the Premises is surrendered to Landlord except for items which have theretofore accrued and are
then unpaid and/or for insurance and indemnity obligations pertaining to events occurring prior to
lease termination.

          (c) In the event of repair, reconstruction and restoration by Landlord as herein provided, the
rental provided to be paid under this Lease shall be abated proportionately with the degree of
objective interference with the reasonable use of the Premises for office space, during the period
of such repair, reconstruction or restoration. Tenant shall not be entitled to any compensation or
damages for loss in the use of the whole or any part of the Premises and/or any inconvenience or
annoyance occasioned by such damage, repair, reconstruction or restoration.

          (d) Tenant shall not be released from any of its obligations under this Lease except to the
extent and upon the conditions expressly stated in this Paragraph 23. Notwithstanding anything to
the contrary contained in this Paragraph 23, should Landlord be delayed or prevented from repairing
or restoring the damaged Premises within one (1) year after the occurrence of such damage or
destruction by reason of acts of God, war, governmental restrictions, inability to procure the
necessary labor or materials, or other cause beyond the control of Landlord, Landlord shall be
relieved of its obligation to make such repairs or restoration and this Lease shall be deemed
terminated as of the end of said one (1)-year period.

          (e) In the event the Premises or the Building are damaged by a risk not covered by Landlord’s
insurance, then Landlord shall have the option either to (1) repair or restore such damage, this
Lease continuing in full force and effect, but the rent to be proportionately abated as hereinabove
provided, or (2) give notice to Tenant at any time within ninety (90) days after such damage
terminating this Lease. In the event of the giving of such notice of termination, this Lease shall
expire and all interest of Tenant in the Premises shall terminate and the rent, reduced by any
proportionate reduction based upon the extent, if any, to which said damage interfered with the use
and occupancy of Tenant, shall be paid to the date of such termination. Landlord agrees to refund
the Tenant any rent theretofore paid in advance for any period of time subsequent to such date.

          (f) It is hereby understood that if Landlord is obligated to or elects to repair or restore as
herein provided, Landlord shall be obligated to make repairs or restoration only of those portions
of the Building and the Premises which were originally provided at Landlord’s expense, and the
repair and restoration of items not provided at Landlord’s expense shall be the obligation of
Tenant.

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          (g) Notwithstanding anything to the contrary contained in this Paragraph 23, Landlord shall
not have any obligation whatsoever to repair, reconstruct or restore the Premises when the damage
resulting from any casualty covered under this Paragraph 23 occurs during the last twelve (12)
months of the term of this Lease or any extension hereof.

          (h) Landlord and Tenant each hereby waive the provisions of California Civil Code Sections
1932(2) and 1933(4), and any other applicable existing or future law, ordinance or regulation with
respect to damage or destruction of leased premises or with respect to the termination of a lease
agreement in the event of such damage or destruction.

     24. EMINENT DOMAIN. In case the whole of the Premises, or such part thereof as shall
substantially interfere with the reasonable use of the premises as office space, shall be taken for
any public or quasi-public purpose by any lawful power or authority by exercise of the right of
appropriation, condemnation or eminent domain, or sold to prevent such taking, either party shall
have the right to terminate this Lease effective as of the date possession is required to be
surrendered to said authority. Tenant shall not assert any claim against Landlord or the taking
authority for any compensation because of such taking and Landlord shall be entitled to receive the
entire amount of any award without deduction for any estate or interest of Tenant. In the event
the amount of property or the type of estate taken shall not substantially interfere with the
reasonable use of the Premises as office space, Landlord shall be entitled to the entire amount of
the award without deduction for any estate or interest of Tenant. If there is no substantial
interference or if there is substantial interference, but neither party elects to terminate,
Landlord shall promptly proceed to restore the Premises to substantially the same condition as the
Premises existed prior to such partial taking, to the extent possible by application of the
condemnation proceeds only, and a proportionate allowance shall be made to Tenant for the rent
corresponding to the time during which, and to the part of the Premises of which Tenant shall be so
deprived on account of such taking and restoration. Nothing contained in this Paragraph shall be
deemed to give Landlord any interest in any award made to Tenant for the taking of personal
property and fixtures belonging to Tenant. Each party waives the provisions of California Code of
Civil Procedure Section 1265.130 allowing either party to petition the Superior Court to terminate
this Lease in the event of a partial taking of the premises.

     25. DEFAULTS AND REMEDIES.

          (a) The occurrence of any one or more of the following events shall constitute a default
hereunder by Tenant:

               (1) The vacation or abandonment of the Premises by Tenant. Abandonment is herein defined to
include, but is not limited to, any absence by Tenant from the Premises for five (5) days or longer
while in default of any material provision of this Lease.

               (2) The failure by Tenant to make any payment of Annual Basic Rent under Paragraph 5 or
estimated Excess Expenses under Subparagraph 6(b)(2), when such payments are due. Tenant may be
late one time in the first year of the Lease without a default being declared., so long as Tenant
pays such Rent no later than 5 business days after such payment was due.

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               (3) Other than as specified in Subparagraph 25(a)(2), the failure by Tenant to make any other
payment required to be made by Tenant hereunder, within thirty (30) days after demand.

               (4) The failure by Tenant to observe or perform any of the express or implied covenants or
provisions of this Lease to be observed or performed by Tenant, other than as specified in
Subparagraph 25(a)(1), (2) or (3) above, where such failure shall continue for a period of ten (10)
days after the giving of written notice thereof from Landlord to Tenant, unless the default is of
such a character as to require more than ten (10) days to cure, and Tenant shall have commenced
such cure within such ten (10)-day period and is pursuing such cure with reasonable diligence.
Notwithstanding the foregoing, if Landlord notifies Tenant that a particular failure endangers
persons or property, Tenant shall be in default unless Tenant immediately commences to cure the
failure and pursues such cure to completion using prompt diligence. To the extent permitted by
law, such ten (10)-day notice shall constitute the sole and exclusive notice to be given to Tenant
under applicable unlawful detainer statutes.

               (5) (i) The making by Tenant of any general assignment for the benefit of creditors; (ii) the
filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or a petition for
reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a
petition filed against Tenant, the same is dismissed within sixty (60) days); (iii) the appointment
of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the
Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within
thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all
of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease where such seizure
is not discharged within thirty (30) days.

          (b) In the event of any such default by Tenant, in addition to any other remedies available to
Landlord at law or in equity, Landlord shall have the immediate option to terminate this Lease and
all rights of Tenant hereunder. In the event that Landlord shall elect to so terminate this Lease
then Landlord may recover from Tenant:

               (1) the worth at the time of award of any unpaid rent which had been earned at the time of
such termination; plus

               (2) the worth at the time of award of the amount by which the unpaid rent which would have
been reasonably earned after termination until the time of award exceeds the amount of such rental
loss that Tenant proves could have been reasonably avoided; plus

               (3) the worth at the time of award of the amount by which the unpaid rent for the balance of
the term after the time of award exceeds the amount of such rental loss that Tenant proves could be
reasonably avoided; plus

               (4) any other amount necessary to compensate Landlord for all the detriment proximately caused
by Tenant’s failure to perform his obligations under this Lease or which in the ordinary course of
things would be likely to result therefrom.

               As used in Subparagraphs 25(b)(1) and (2) above, the “worth at the time of award” is computed
by allowing interest at the maximum rate permitted by law per annum.

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As used in Subparagraph 25(b)(3) above, the “worth at the time of award” is computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the
time of award plus one percent (1%).

          (c) In the event of any such default by Tenant, Landlord shall also have the right, with or
without terminating this Lease, to re-enter the Premises and remove all persons and property from
the Premises; such property may be removed and stored in a public warehouse or elsewhere at the
cost of and for the account of Tenant. No re-entry or taking possession of the Premises by
Landlord pursuant to this Subparagraph 25(c) shall be construed as an election to terminate this
Lease unless a written notice of such intention be given to Tenant or unless the termination
thereof be decreed by a court of competent jurisdiction.

          (d) Landlord shall also have the remedy described in California Civil Code Section 1951.4
(i.e., the right to continue the Lease in effect and recover rent as it becomes due). In such
event, Landlord may continue this Lease in full force and effect, and this Lease will continue in
effect as long as Landlord does not terminate Tenant’s right to possession, and Landlord shall have
the right to collect rent when due. During the period Tenant is in default, Landlord can enter the
Premises and relet them, or any part of them, to third parties for Tenant’s account. Tenant shall
be liable immediately to Landlord for all costs Landlord incurs in reletting the Premises,
including, without limitation, brokers’ commissions, expenses of remodeling the Premises required
by the reletting, and like costs. Reletting can be for a period shorter or longer than the
remaining term of this Lease. Tenant shall pay to Landlord the rent due under this Lease on the
dates the rent is due, less the rent Landlord receives from any reletting. No act by Landlord
allowed by this Subparagraph 25(d) shall terminate this Lease unless Landlord notifies Tenant that
Landlord elects to terminate this Lease.

               If Landlord elects to relet the Premises as provided in this Subparagraph 25(d), rent that
Landlord receives from reletting shall be applied to the payment of:

               (1) First, any indebtedness from Tenant to Landlord other than rent due from Tenant;

               (2) Second, all costs, including for maintenance, incurred by Landlord in reletting;

               (3) Third, rent due and unpaid under this Lease. After deducting the payments referred to in
this Paragraph, any sum remaining from the rent Landlord receives from reletting shall be held by
Landlord and applied in payment of future rent as rent becomes due under this Lease. In no event
shall Tenant be entitled to any excess rent received by Landlord. If, on the date rent is due
under this Lease, the rent received from the reletting is less than the rent due on that date,
Tenant shall pay to Landlord, in addition to the remaining rent due, all costs, including for
maintenance, Landlord incurred in reletting that remain after applying the rent received from the
reletting as provided in this Subparagraph 25(d).

          (e) All rights, options and remedies of Landlord contained in this Lease shall be construed
and held to be cumulative, and no one of them shall be exclusive of the other, and

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Landlord shall
have the right to pursue any one or all of such remedies or any other remedy or
relief which may be provided by law or in equity, whether or not stated in this Lease. No
waiver of any default of Tenant hereunder shall be implied from any acceptance by Landlord of any
rent or other payments due hereunder or any omission by Landlord to take any action on account of
such default if such default persists or is repeated. Any waiver must be in writing and such
express waiver shall not affect defaults other than as specified in the waiver. The consent or
approval of Landlord to or of any act by Tenant requiring Landlord’s consent or approval shall not
be deemed to waive or render unnecessary Landlord’s consent or approval to or of any subsequent
similar acts by Tenant.

          (f) As used in this Lease, except as expressly stated herein, the term “rent” shall
refer to Annual Basic Rent, Excess Expenses and any other sum required to be paid to Landlord under
this Lease.

     26. ASSIGNMENT AND SUBLETTING. No assignment of this Lease or sublease of all or any
part of the Premises shall be permitted, except as provided in this Paragraph 26.

          (a) Tenant shall not without the prior written consent of Landlord, which consent shall not be
unreasonably withheld, assign or hypothecate this Lease or any interest herein or sublet the
Premises or any part thereof, or permit the use of the Premises by any party other than Tenant.
Any of the foregoing acts without such consent shall be void and shall, at the option of Landlord,
terminate this Lease. This Lease shall not, nor shall any interest of Tenant herein, be assignable
by operation of law without the written consent of Landlord. For purposes of this Lease, transfers
by “operation of law” shall also include transfers which arise upon the death of an individual
tenant by testacy or intestacy. If Tenant is a limited liability company, or corporation which,
under the laws of California, is not deemed a public corporation, or is an unincorporated
association or partnership, the transfer, assignment or hypothecation of any stock or interest in
such limited liability company, corporation, association or partnership in the aggregate in excess
of twenty-five percent (25%) shall be deemed an assignment for the purposes of this Paragraph 26.

          (b) If at any time or from time to time during the Term Tenant desires to assign this Lease or
sublet all or any part of the Premises, Tenant shall give written notice to Landlord not later than
thirty (30) days prior to the effective date of such proposed assignment or subletting, setting
forth the terms and provisions of the proposed assignment or sublease, and the identity of the
proposed assignee or subtenant by providing to Landlord a copy of the proposed or executed sublease
or assignment. Tenant shall promptly supply Landlord with such information concerning the business
background, type of office use and operation and financial condition of such proposed assignee or
subtenant as Landlord may reasonably request. Landlord shall have the option, exercisable by
notice given to Tenant within twenty (20) days after Tenant’s notice is given and any such
additional information is supplied, either to sublet such space from Tenant at the lower of the
rental offered by Tenant to the proposed subtenant, or the rental set forth in this Lease, for the
term set forth in Tenant’s notice, or, in the case of an assignment, to terminate this Lease.

          (c) Landlord shall be permitted to consider any reasonable factor in determining whether or
not to withhold its consent to a proposed assignment or sublease.

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Without limiting the other
instances in which it may be reasonable for Landlord to withhold its
consent to assignment or sublease, it shall be reasonable for Landlord to withhold its consent
if any of the following conditions are not satisfied:

               (1) The proposed transferee shall be at least as creditworthy as is Tenant as of the date of
this Lease and shall have the financial strength and stability to perform all obligations under
this Lease to be performed by Tenant;

               (2) The proposed use of the Premises by the transferee shall (i) comply with the provisions of
Paragraph 8 hereof, (ii) be consistent with the general character of businesses carried on by
tenants of a first-class office building, (iii) not increase the likelihood of damage or
destruction, (iv) not increase the density of occupancy of the Premises or increase the amount of
pedestrian and other traffic through the Building, (v) not be likely to cause an increase in
insurance premiums for insurance policies applicable to the Building, (vi) not require new tenant
improvements incompatible with then-existing Building systems and components, (vii) not require
Landlord to make modifications to the Building, (viii) not increase the electrical or HVAC usage in
the Premises, and (ix) not otherwise have or cause a material adverse impact on the Premises, the
Building, the Property, or Landlord’s interest therein;

               (3) Tenant or such transferee shall, prior to occupancy, deliver to Landlord any increase in
the Security Deposit required by Landlord’s then-current standards for delivery of security
deposits by tenants;

               (4) The proposed transferee shall not be an existing tenant or occupant of the Building or a
person or entity with whom Landlord is then dealing, or with whom Landlord has had any dealings
within the previous six (6) months, with respect to the leasing of space in the Building;

               (5) Any ground lessor or mortgagee whose consent to such transfer is required fails to consent
thereto;

               (6) Any proposed subletting shall not result in more than two (2) subleases of portions of the
Premises being in effect at any one time during the Term;

               (7) At the time of the request, no event of default under this Lease, or under any other lease
between Tenant and Landlord or any affiliate of Landlord, shall have occurred and be continuing;

               (8) In the case of a sublease, the monthly rental per square foot of Rentable Area of the
Premises offered to the sublessee shall be not less than the monthly base rent per square foot of
Rentable Area then being offered by Landlord in connection with new leases of comparable space
similarly improved for terms of similar length, and Tenant shall not grant greater amounts of
“free rent” or other economic concessions in excess of the concessions then being granted
by Landlord in connection with similar new leases; and

               (9) No sub-subleasing shall be permitted.

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     Tenant shall have the burden of demonstrating that each of the foregoing conditions has been
satisfied.

          (d) Provided Landlord has consented to such assignment or subletting in writing, Tenant may
assign or sublet the Premises to any third party subject to the following conditions:

               (1) At the time of the transfer, no event of default under this Lease, or under any other
lease between Tenant and Landlord or any affiliate of Landlord, shall have occurred and be
continuing;

               (2) The assignment or sublease shall be on the same terms set forth in the notice given to
Landlord;

               (3) No assignment or sublease shall be valid and no assignee or sublessee shall take
possession of the Premises until an executed counterpart of such assignment or sublease has been
delivered to Landlord;

               (4) No assignee or sublessee shall have a further right to assign or sublet without Landlord’s
consent thereto in each instance; and

               (5) (i) In the event Tenant sublets the entire Premises or any part thereof, Tenant shall
deliver to Landlord seventy-five percent (75%) of any “excess rent” (as such term is hereinafter
defined) within thirty (30) days of Tenant’s receipt thereof pursuant to such subletting. As used
herein, “excess rent” shall mean any sums or economic consideration per square foot of the
Premises received by Tenant pursuant to such subletting in excess of the amount of the rent per
square foot of the Premises payable by Tenant under this Lease applicable to the part or parts of
the Premises so sublet; provided, however, that no such “excess rent” shall be payable until Tenant
shall have recovered therefrom the costs incurred by Tenant for brokerage commissions and other
concessions and costs in conjunction with such subletting; (ii) In the event Tenant assigns this
Lease, Tenant shall deliver to Landlord seventy-five percent (75%) of any “excess payment” (as such
term is hereinafter defined) within thirty (30) days of Tenant’s receipt thereof pursuant to such
assignment. As used herein, “excess payment” shall mean the amount of payment received for
such assignment of this Lease in excess of the rent payable by Tenant under this Lease; provided,
however, that no “excess payment” shall be payable until Tenant shall have recovered therefrom the
costs incurred by Tenant for brokerage commissions and other concessions and costs in conjunction
with such assignment.

          (e) Notwithstanding the provisions of Subparagraphs 26(a) and (b) above, Tenant may assign
this Lease or sublet the Premises or any portion thereof, without Landlord’s consent and without
extending any recapture or termination option to Landlord, to any corporation which controls, is
controlled by or is under common control with Tenant (“Tenant’s Affiliate”), provided that
(i) the assignee or sublessee assumes, in full, the obligations of Tenant under this Lease, (ii)
Tenant remains fully liable under this Lease, and (iii) the use of the Premises under Paragraph 8
remains unchanged. The right to assign or sublet to Tenant’s Affiliate is personal to original
Tenant and shall not be available to any subsequent assignee or subtenant.

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          (f) No subletting or assignment shall release Tenant of Tenant’s obligations under this Lease
or alter the primary liability of Tenant to pay the Rent and to perform all other
obligations to be performed by Tenant hereunder. The acceptance of Rent by Landlord from any
other person shall not be deemed to be a waiver by Landlord of any provision hereof. Consent to
one assignment or subletting shall not be deemed consent to any subsequent assignment or
subletting. In the event of default by an assignee or subtenant of Tenant or any successor of
Tenant in the performance of any of the terms hereof, Landlord may proceed directly against Tenant
without the necessity of exhausting remedies against such assignee, subtenant or successor.
Landlord may consent to subsequent assignments of the Lease or sublettings or amendments or
modifications to the Lease with assignees of Tenant, without notifying Tenant, or any successor of
Tenant, and without obtaining its or their consent thereto and any such actions shall not relieve
Tenant of liability under this Lease.

          (g) If Tenant assigns the Lease or sublets the Premises or requests the consent of Landlord to
any assignment or subletting or if Tenant requests the consent of Landlord for any act that Tenant
proposes to do, then Tenant shall deliver to Landlord, at the same time as the written notice
required under Paragraph 26(b), an administrative fee of Five Hundred and 00/100 Dollars ($500.00)
plus any attorneys’ fees reasonably incurred by Landlord in connection with such act or request.

          (h) Notwithstanding the requirement of Landlord’s approval prior to any assignment or
subletting, if this Lease is assigned to any person or entity pursuant to the provisions of the
Bankruptcy Code, seventy-five percent (75%) of any excess payment (as defined in Subparagraph
26(d)(5)(ii) shall be paid or delivered to Landlord, shall be and remain the exclusive property of
Landlord and shall not constitute property of Tenant or of any bankruptcy estate of Tenant. Any
and all monies or other considerations constituting Landlord’s property under the preceding
sentence not paid or delivered to Landlord shall be held in trust for the benefit of Landlord and
be promptly paid or delivered to Landlord. Any person or entity to which this Lease is assigned
pursuant to the provisions of the Bankruptcy Code shall be deemed without further act or deed to
have assumed all of the obligations arising under this Lease on and after the date of such
assignment. Any such assignee shall upon demand execute and deliver to Landlord an instrument
confirming such assumption.

          (i) In the event Tenant assigns this Lease and has paid or agreed to pay assignee any sum of
money as consideration for assuming obligations of Tenant under this Lease (an “assumption
payment”), the assumption payment shall be paid over by Tenant or assignee to Landlord, which
payment shall be applied at Landlord’s option either as prepaid rent or as a security deposit (or
an additional security deposit if there is an existing security deposit), no later than the date
that assignee first enters the Premises for purposes of moving in furniture or equipment or for
making any authorized tenant improvements, and in no event later than the date on which the
assignment is to be effective.

     27. SUBORDINATION AND NON-DISTURBANCE. At the election of Landlord or any first
mortgagee with a lien on the Building or any ground lessor with respect to the Building, Tenant
agrees that this Lease shall be subject and subordinate at all times to: (a) all ground leases or
underlying leases which may now exist or hereafter be executed affecting the Building or the land
upon which the Building is situated or both; and (b) the lien of any mortgage

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or deed of trust which may now exist or hereafter be executed in any amount for which the
Building, land, ground leases or underlying leases, or Landlord’s interest or estate in any of said
items is specified as security. Notwithstanding the foregoing, Landlord shall have the right to
subordinate or cause to be subordinated any such ground leases or underlying leases or any such
liens to this Lease. In the event that any ground lease or underlying lease terminates for any
reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of foreclosure is
made for any reason, Tenant shall, notwithstanding any subordination, attorn to and become the
tenant of the successor-in-interest to Landlord, at the option of such successor in interest.
Tenant covenants and agrees to execute and deliver, upon demand by Landlord and in the form
requested by Landlord, any additional documents evidencing the priority or subordination of this
Lease with respect to any such ground leases or underlying leases or the lien of any such mortgage
or deed of trust. Tenant hereby irrevocably appoints Landlord as attorney-in-fact of Tenant to
execute, deliver and record any such documents in the name and on behalf of Tenant.
Notwithstanding the foregoing, Tenant’s subordination to any future ground lease or lien of any
mortgage or deed of trust shall be conditioned on the receipt by Tenant of a commercially
reasonable form of non-disturbance agreement, executed by each such lender, subject to execution by
Tenant of a subordination agreement.

     28. ESTOPPEL CERTIFICATE.

          (a) Within ten (10) days following the giving of any written request which Landlord may make
from time to time, Tenant shall execute and deliver to Landlord a statement certifying: (i) the
date of commencement of this Lease; (ii) the fact that this Lease is unmodified and in full force
and effect (or, if there have been modifications hereto, that this Lease is in full force and
effect, as modified, and stating the date and nature of such modifications); (iii) the date to
which the rental and other sums payable under this Lease have been paid; (iv) the fact that there
are no current defaults under this Lease by either Landlord or Tenant except as specified in
Tenant’s statement; and (v) such other matters requested by Landlord. Landlord and Tenant intend
that any statement delivered pursuant to this Paragraph 28 may be relied upon by any mortgagee,
beneficiary, purchaser or prospective purchaser of the Building or any interest therein.

          (b) Tenant’s failure to deliver such statement within such time shall be conclusive upon
Tenant (i) that this Lease is in full force and effect, without modification except as may be
represented by Landlord, (ii) that there are no uncured defaults in Landlord’s performance, and
(iii) that not more than one (1) month’s rental has been paid in advance.

     29. Intentionally Deleted

     30. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the “Rules
and Regulations,” a copy of which is attached hereto and marked Exhibit B, and all reasonable and
nondiscriminatory modifications thereof and additions thereto from time to time put into effect by
Landlord according to Landlord’s discretion. Landlord shall not be responsible to Tenant for the
violation or non-performance by any other tenant or occupant of the Building, or by any employee,
agent, contractor, licensee or invitee of any such tenant or occupant, of any of said Rules and
Regulations. The Lease shall rule in any conflict between the Rules and Regulations and the Lease.

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     31. CONFLICT OF LAWS; INTERPRETATION. This Lease shall be governed by and construed
pursuant to the laws of the State of California. The provisions of this Lease shall be construed
in accordance with the fair meaning of the language used and shall not be strictly construed
against either party.

     32. SUCCESSORS AND ASSIGNS. Except as otherwise provided in this Lease, all of the
covenants, conditions and provisions of this Lease shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, personal representatives, successors and
assigns.

     33. SURRENDER OF PREMISES. The voluntary or other surrender of this Lease by Tenant,
or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Landlord,
operate as an assignment to it of any or all subleases or subtenancies.

     34. ATTORNEYS’ FEES. If Tenant or Landlord shall be in breach or default under this
Lease, such party (the “Defaulting Party”) shall reimburse the other party (the
“Nondefaulting Party”) upon demand for any costs or expenses that the Nondefaulting Party
incurs in connection with any breach or default of the Defaulting Party under this Lease, including
the expense of an attorney engaged in efforts to enforce the provisions of this Lease against the
Defaulting Party, whether or not suit is commenced or judgment entered. Such costs shall include
legal fees and costs incurred for the negotiation of a settlement, enforcement of rights or
otherwise. Furthermore, if any action for breach of or to enforce the provisions of this Lease is
commenced, the court in such action shall award to the party in whose favor a judgment is entered,
a reasonable sum as attorneys’ fees and costs. The losing party in such action shall pay such
attorneys’ fees and costs. Tenant shall also indemnify Landlord against and hold Landlord harmless
from all costs, expenses, demands and liability Landlord may incur if Landlord becomes or is made a
party to any claim or action (a) instituted by Tenant against any third party, or by any third
party against Tenant, or by or against any person holding any interest under or using the Property
by license of or agreement with Tenant; (b) for foreclosure of any lien for labor or material
furnished to or for Tenant or such other person; (c) otherwise arising out of or resulting from any
act or transaction of Tenant or such other person; or (d) necessary to protect Landlord’s interest
under this Lease in a bankruptcy proceeding, or other proceeding under Title 11 of the United
States Code, as amended. Tenant shall protect and defend Landlord against any such claim or action
at Tenant’s expense with counsel reasonably acceptable to Landlord, or at Landlord’s election,
Tenant shall reimburse Landlord for any legal fees or costs Landlord incurs in any such claim or
action.

     35. PERFORMANCE BY TENANT. All covenants and agreements to be performed by Tenant
under any of the terms of this Lease shall be performed by Tenant at Tenant’s sole cost and expense
and without any abatement of rent. If Tenant shall fail to pay any sum of money, other than Annual
Basic Rent, required to be paid by it hereunder or shall fail to perform any other act on its part
to be performed hereunder, and such failure shall continue for ten (10) days after notice thereof
by Landlord, Landlord may, without waiving or releasing Tenant from obligations of Tenant, but
shall not be obligated to, make any such payment or perform any such other act on Tenant’s part to
be made or performed as in this Lease provided. All sums so paid by Landlord and all necessary
incidental costs together with interest thereon at the rate provided in Paragraph 53 below, from
the date of such payment by Landlord, until paid, shall be payable

35

 

to Landlord on demand. Tenant covenants to pay any such sums, and Landlord shall have (in addition to any other right or remedy
of Landlord) the same rights and remedies in the event of the non-payment thereof by Tenant as in
the case of default by Tenant in the payment of the Annual Basic Rent. Tenant acknowledges that
late payment by Tenant to Landlord of any sums due hereunder will cause Landlord to incur costs not
contemplated by this Lease, the exact amount of such costs being extremely difficult and
impracticable to fix. Such costs include, without limitation, processing and accounting charges,
and late charges that may be imposed on Landlord by the terms of any lease, encumbrance, note or
other commitment covering the premises. Therefore, if any payment due from Tenant is not received
by Landlord when due, Tenant shall pay to Landlord an additional sum of five percent (5%) of the
overdue payment as a late charge. The parties agree that this late charge represents a fair and
reasonable estimate of the costs that Landlord will incur by reason of late payment by Tenant.
Acceptance of any late charge shall not constitute a waiver of Tenant default with respect to the
overdue amount, or prevent Landlord from exercising any of the other rights and remedies available
to Landlord. Further, following any second consecutive late payment of rent, Landlord shall have
the option: (a) to require that beginning with the first payment of rent due following the date
such late payment was due, rent shall no longer be paid in monthly installments but shall be
payable three (3) months in advance; or (b) to require that Tenant increase the amount of the
Security Deposit required under Paragraph 7 hereinabove by one hundred percent (100%), which
additional Security Deposit shall be retained by Landlord and may be applied by Landlord in the
manner provided in said Paragraph 7.

     36. MORTGAGEE PROTECTION. In the event of any default on the part of Landlord, Tenant
will give notice by registered or certified mail to any beneficiary of a deed of trust or mortgagee
under a mortgage covering the Premises whose address shall have been furnished to Tenant, and shall
offer such beneficiary or mortgagee a reasonable opportunity to cure the default, including time to
obtain possession of the Premises by power of sale or a judicial foreclosure, if such should prove
necessary to effect a cure. As used in this Lease, mortgagee includes without limitation the
beneficiary(ies) of any deed of trust.

     37. DEFINITION OF LANDLORD. The term “Landlord” as used in this Lease, so far
as covenants or obligations on the part of Landlord are concerned, shall be limited to mean and
include only the owner or owners, at the time in question, of the fee of the Premises or if there
is a ground lease or other master lease then in effect, the owner of the tenant tenant’s rights
under such ground or master lease. In the event of any transfer, assignment or other conveyance or
transfers of any such title or tenant, Landlord herein named (and in case of any subsequent
transfers or conveyances, the then grantor) shall be automatically freed and relieved from and
after the date of such transfer, assignment or conveyance of all liability as respects the
performance of any covenants or obligations on the part of Landlord contained in this Lease
thereafter to be performed and, without further agreement, the transferee of such title shall be
deemed to have assumed and agreed to observe and perform any and all obligations of Landlord
hereunder, during its ownership of the Premises. Landlord may transfer its interest in the
Premises without the consent of Tenant and such transfer or subsequent transfer shall not be deemed
a violation on Landlord’s part of any of the terms and conditions of this Lease.

     38. WAIVER. The waiver by Landlord of any breach of any term, covenant or condition
herein contained shall not be deemed to be a waiver of any subsequent breach of the

36

 

same or any other term, covenant or condition herein contained, nor shall any custom or practice which may grow
up between the parties in the administration of the terms hereof be deemed a waiver of, or in any
way affect, the right of Landlord to insist upon the performance by Tenant in strict accordance
with said terms. The subsequent acceptance of rent hereunder by Landlord shall not be deemed to be
a waiver of any breach by Tenant of any term, covenant or condition of this Lease, regardless of
Landlord’s knowledge of such breach at the time of acceptance of such rent.

     39. IDENTIFICATION OF TENANT. If more than one person executes this lease as Tenant,
(a) each of them is jointly and severally liable for the keeping, observing and performing of all
of the terms, covenants, conditions, provisions and agreements of this Lease to be kept, observed
and performed by Tenant, and (b) the term “Tenant” as used in this Lease shall mean and
include each of them jointly and severally and the act of or notice from, or notice or refund to,
or the signature of, any one or more of them, with respect to the tenancy or this Lease including,
but not limited to, any renewal, extension, expiration, termination or modification of this Lease,
shall be binding upon each and all of the persons executing this Lease as Tenant with the same
force and effect as if each and all of them had so acted or so given or received such notice or
refund or so signed.

     40. PARKING. Tenant shall have the right to park in the Building’s parking facilities
in common with other tenants of the Building upon terms and conditions as may from time to time be
established by Landlord. Tenant agrees not to overburden the parking facilities and agrees to
cooperate with Landlord and other Tenants in the use of the parking facilities. Landlord reserves
the right in its absolute discretion to determine whether the parking facilities are becoming
crowded and to allocate and assign parking spaces among Tenant and the other tenants, and to alter,
relocate, reduce or otherwise change the parking facilities and to take measures with respect to
the parking area from time to time in order to comply with the policies of any applicable
Transportation Plan. Tenant shall be granted the use of forty-five (45) non-reserved parking
spaces based on the Rentable Area of the Premises leased by Tenant since each tenant of the
Building is allocated four (4) non-reserved parking spaces for each one thousand (1,000) square
feet (or portion thereof) of actual rentable office space leased.

     41. TERMS AND HEADINGS. The words “Landlord” and “Tenant” as used
herein shall include the plural as well as the singular. Words used in any gender include other
genders. The Paragraph headings of this Lease are not a part of this Lease and shall have no
effect upon the construction and interpretation of any part hereof.

     42. EXAMINATION OF LEASE. Submission of this instrument for examination or signature
by Tenant does not constitute a reservation of or option for Lease, and it is not effective as a
Lease or otherwise until execution by and delivery to both Landlord and Tenant.

     43. TIME. Time is of the essence with respect to the performance of every provision
of this Lease in which time or performance is a factor, except for Landlord’s obligation to deliver
the Premises.

     44. PRIOR AGREEMENTS; AMENDMENTS. This Lease contains all of the agreements of the
parties hereto with respect to any matter covered or mentioned in this Lease,

37

 

and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose,
including, without limitation, that certain letter of intent dated April 18, 2011. No provisions
of this Lease may be amended or added to except by an agreement in writing signed by the parties
hereto or their respective successors-in-interest.

     45. SEPARABILITY. Any provision of this Lease which shall prove to be invalid, void
or illegal in no way affects, impairs or invalidates any other provision hereof, and such other
provisions shall remain in full force and effect.

     46. RECORDING. Neither Landlord or Tenant shall record this Lease nor a short form
memorandum thereof without the consent of the other.

     47. LIMITATION ON 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) Tenant’s sole and exclusive recourse shall be against Landlord’s interest in the Premises
and the Building. Tenant shall not have any right to satisfy any judgment which it may have
against Landlord from any other assets of Landlord.

          (b) No partner, stockholder, director, officer, employee or beneficiary or trustee
(collectively, “Partner”) of Landlord shall be sued or named as a party in any suit or
action (except as may be necessary to secure jurisdiction over Landlord).

          (c) No service of process shall be made against any Partner of Landlord (except as may be
necessary to secure jurisdiction over Landlord).

          (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.

          (f) Any judgment taken against any Partner of Landlord may be vacated and set aside at any
time nunc pro tunc.

          (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.

     48. RIDERS. Clauses, plats and riders, if any, signed by Landlord and Tenant and
affixed to this Lease are a part hereof.

     49. SIGNS AND AUCTIONS. Tenant shall not place any sign upon the Premises or the
Building without the prior written consent of Landlord. Tenant shall not conduct any auction on
the Premises or in the Building. Landlord shall grant Tenant the right (i) to place its name
adjacent to the main entry door of the Premises, provided such sign conforms to the Building

38

 

standard, (ii) to Building lobby directory listing for Tenant, and (iii) Building signage on the
exterior of the Building, in a location as designated on Exhibit A-2. All costs associated with
such signage (other than standard lobby directory and suite signage), including permits, design,
furnishing, installation and removal thereof, and including any restoration of the Building to its
original condition prior to the installation of any such signage, shall be borne by Tenant. All
such signage shall meet all requirements of and be in accordance with the signage criteria for
Johnson Ranch and City of Roseville, and shall be subject to Landlord’s approval. The Building
signage provisions are personal to Tenant and may not be transferred or in any way utilized by a
subtenant or assignee.

     50. MODIFICATION FOR LENDER. If, in connection with obtaining construction, interim
or permanent financing for the Building, the lender shall request reasonable modifications in this
Lease as a condition to such financing, Tenant will not unreasonably withhold, delay or defer its
consent thereto, provided that such modifications do not increase the obligations of Tenant
hereunder or materially adversely affect the leasehold interest hereby created or Tenant’s rights
hereunder.

     51. ACCORD AND SATISFACTION. No payment by Tenant or receipt by Landlord of a lesser
amount than the rent payment herein stipulated shall be deemed to be other than on account of the
rent, nor shall any endorsement or statement on any check or any letter accompanying any check or
payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment
without prejudice to Landlord’s right to recover the balance of such rent or pursue any other
remedy provided in this Lease.

     52. AUTHORITY. Each of the persons executing this Lease on behalf of Tenant warrants
and represents that Tenant is a duly organized and validly existing entity, that Tenant has full
right and authority to enter into this Lease and that the persons signing on behalf of Tenant are
authorized to do so and have the power to bind Tenant to this Lease. Tenant shall provide Landlord
upon request with evidence reasonably satisfactory to Landlord confirming the foregoing
representations.

     53. INTEREST ON UNPAID RENT. Rent not paid when due shall bear interest from the date
due until paid at the rate of fifteen percent (15%) per annum or the maximum lawful rate that
Landlord may charge to Tenant under applicable laws, whichever is less.

     54. CONFERENCE ROOM. Tenant shall have the right to use the approximately
412 rentable square foot conference room located within Suite 250 of the Building and designated
for the use by the employees of the Building’s property manager, other tenants and subtenants of
the Building and the building located at 2240 Douglas Boulevard, Roseville, California, in common
with all other employees, tenants and subtenants of the Building (the “Conference Room”).
Tenant’s right to use the Conference Room shall be subject to Tenant complying with the reservation
procedures and all of the other rules and regulations applicable to such use as Landlord may
establish from time-to-time in Landlord’s sole discretion.

     55. DISPUTED SUMS. If Tenant disputes any amount due Landlord under the terms of this
Lease, including, without limitation, Direct Expenses or sums advanced by Landlord to cure Tenant’s
default, Tenant shall pay the amount demanded by Landlord. Upon resolution of

39

 

the dispute, whether by agreement, settlement or judgment entered following litigation, any amount to be refunded by
Landlord shall be paid within thirty (30) days of resolution of the dispute. Failure by Tenant to
pay any disputed sum until resolution shall constitute a default under this Lease.

     56. CONFIDENTIALITY. Except to the extent required to comply with applicable legal
requirements, including as part of regular securities law reporting requirements, and/or in
accordance with securities regulatory authority or securities exchange rules, demands and/or
practice, Landlord and Tenant shall agree to keep the contents of this Lease confidential and shall
not disclose such information to any person or entity except as required by law or as necessary to
its financial, legal, brokerage and space planning advisors. In no event shall either party or
their respective agents, employees or contractors issue a press release regarding this transaction
without the express written consent of the other party.

     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 any statute or at
common law.

     Exhibits A, A-1, A-2, A-3, A-4, A-5, A-6, B, C, D and E attached hereto are incorporated
herein by reference.

40

 

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

	 	 	 

	LANDLORD:

	 	TENANT:
	 
	 	 
	LUM YIP KEE, LIMITED, a Hawaii

corporation, doing business as Twin Trees

Land Company

	 	SOLAR POWER, INC., a California

corporation
	 
	 	 
	By: /s/ Jeffrey M.C. Lum

	 	By: /s/ Jeff Winzeler
	 
	 	 
	Its: Vice President

	 	Its: Chief Financial Officer

41

 

Exhibit A

Outline of Floor Plan Premises

2240 Douglas Blvd.

Suite 200

Roseville, CA

1

 

Exhibit A-1

Floor Plan of the Premises

2240 Douglas Blvd.

Suite 200

Roseville, CA

BUILDING SIGN LOCATION

1

 

2

 

EXHIBIT A-3

TENANT IMPROVEMENT SPECIFICATIONS

GENERAL INFORMATION

	 	A.	 	LEED and Sustainability

	 	1.	 	The Landlord encourages LEED® certification for Tenant Improvement work under
the LEED® for Commercial Interiors Rating System.

	 	a.	 	Refer to Specification Section 01352 — LEED® Requirements for specific
requirements.

	 	B.	 	Construction Waste Management

	 	1.	 	The General Contractor is responsible for creating and implementing a
Construction Waste Management (CWM) Plan which diverts a minimum of 70% of the waste
(by volume) generated by facility alterations and additions (including demolition and
new construction activities) from disposal to landfills and incineration facilities.

	 	a.	 	Furniture, fixtures and equipment (FF&E) are excluded from the
calculation.
	 
	 	b.	 	Mechanical, Electrical and Plumbing components are excluded from the
calculation.

	 	2.	 	Refer to Specification Section 01505 — Construction Waste Management for
specific requirements.

	 	C.	 	Construction Indoor Air Quality (IAQ) Management

	 	1.	 	General Contractors are responsible for creating and implementing a
Construction IAQ Management Plan throughout the duration of construction activities.
	 
	 	2.	 	Refer to Specification Section 01440 — Construction Indoor Air Quality for
specific requirements.

	 	D.	 	Sustainable Purchasing: Facility Alterations and Additions

	 	1.	 	Projects shall achieve sustainable purchases of 50% of total purchased (by
cost) based on material cost (excluding labor) for alterations and additions of
permanently or semi-permanently installed building elements.

	 	a.	 	Furniture, fixtures and equipment (FF&E) are excluded from the
calculation.
	 
	 	b.	 	Mechanical, Electrical and Plumbing components are excluded from the
calculation.

	 	2.	 	The General Contractor shall maintain records which account for all materials
purchases, costs and which include a log that compiles the sustainable purchasing rate
for the project.
	 
	 	3.	 	The General Contractor shall provide a copy of Sustainable Purchasing records
to Owner at completion of job.
	 
	 	4.	 	Refer to Specification Section 01352 — LEED® Requirements for additional
information.
	 
	 	5.	 	Sustainable purchases are defined as follows:

	 	a.	 	Purchases which contain at least 10% post-consumer or 20%
post-industrial (pre-consumer) material.

	 	1.	 	Examples: steel studs, insulation, carpet, doors, door & window
frames, acoustical ceiling grids and acoustical ceiling tiles.

	 	b.	 	Purchases which contain at least 70% material salvaged from off-site or
outside the organization.
	 
	 	c.	 	Purchases which contain at least 70% material salvaged from on-site,
through an internal organization materials and equipment reuse program.
	 
	 	d.	 	Purchases contain at least 50% rapidly renewable material

	 	1.	 	Examples: Linoleum, Agrifiber boards such as wheatboard.

	 	e.	 	Purchases contain at least 50% Forest Stewardship Council
(FSC)-certified wood

	 	2.	 	Examples: Wood doors, wood framing and substrate materials for
casework.

	 	f.	 	Purchases contain at least 50% material harvested and processed or
extracted and processed within 500 miles of the project.
	 
	 	g.	 	Adhesives and sealants have a VOC content less than the current VOC
content limits of South Coast Air Quality Management District (SCAQMD) Rule #1168,
or sealants used as fillers meet or exceed the requirements of the Bay Area Air
Quality Management District Regulation 8, Rule 51.

	 	1.	 	See VOC limits specified in Section 01352 and product
specifications herein.

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	TENANT IMPROVEMENT STANDARDS

	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	h.	 	Paints and coating have VOC emissions not exceeding the VOC and
chemical component limits of Green Seal’s Standard GS-11 requirements.

	 	1.	 	See VOC limits specified in Section 01352 and product
specifications herein

	 	i.	 	Non-carpet finished flooring is FloorScore-certified and constitutes a
minimum of 25% of the finished floor area
	 
	 	j.	 	Carpet meets the requirements of the CRI Green Label Plus Carpet
Testing Program
	 
	 	k.	 	Carpet cushion meets the requirements of the CRI Green Label Testing
Program.
	 
	 	l.	 	Composite panels and agrifiber products contain no added
urea-formaldehyde resins.

WALL CONSTRUCTION:

	 	A.	 	Standard One Hour Rated Full-Height Wall

	 	1.	 	3 5/8” metal studs x 20 gauge x 24“o.c. from slab to underside of structure
(deck, beam, joist, etc.)
	 
	 	2.	 	5/8” type “X” gypsum board each side — full height of framed wall
	 
	 	3.	 	2 1/2”, R-11 batt insulation — full height of framed wall
	 
	 	4.	 	Provide fire stops/sealant as required by code
	 
	 	5.	 	Tape and texture both sides to match existing finish

	 	B.	 	Standard Demising Non-Rated Full-Height Wall

	 	1.	 	3 5/8” metal studs x 20 gauge x 24“o.c. from slab to underside of structure
(deck, beam, joist, etc.)
	 
	 	2.	 	5/8” type “X” gypsum board — to 6” above ceiling on one side and full height of
framed wall on other side
	 
	 	3.	 	2 1/2”, R-11 batt insulation to 6” above ceiling
	 
	 	4.	 	Tape all gypsum board joints and seams above ceiling and seal all penetrations
through same
	 
	 	5.	 	Return air openings to be sized by the mechanical engineer and protected with
an expanded wire mesh screen for security
	 
	 	6.	 	Tape and texture both sides to match existing finish

	 	C.	 	Standard Interior Partition Height Wall

	 	1.	 	3 5/8” metal studs x 25 gauge x 24“o.c. — slab to underside of ceiling
	 
	 	2.	 	5/8” gypsum board each side — full height of framed wall
	 
	 	3.	 	Tape and texture both sides to match existing finish
	 
	 	4.	 	Provide seismic bracing as required by code

	 	D.	 	Standard One-Hour Corridor

	 	1.	 	To be detailed by the Architect and submitted to the proper Building Officials
for approval.

DOORS

	 	A.	 	Interior Wood Door:

	 	1.	 	3’0” x 8’-10” x 1 3/4” Flush Panel, Solid Core Wood Door

	 	a.	 	Composite wood and agrifiber products, defined as particleboard,
medium-density fiberboard (MDF), plywood, oriented-strand board (OSB), wheatboard,
strawboard, panel substrates and door cores, must contain no added
urea-formaldehyde resins.
	 
	 	b.	 	Laminating Adhesives used to fabricate on-site and shop applied
assemblies containing these laminate adhesives must contain no added
urea-formaldehyde.

	 	2.	 	Plain Sliced Red Oak

	 	a.	 	Field-applied Light Oak stain to match existing; stain shall comply
with the VOC limits identified in the “Paints and Coatings” section below.

	 	B.	 	Corridor Wood Door:

	 	1.	 	3’0” x 8’-10” x 1 3/4” Flush Panel, Solid Core Wood Door

	 	a.	 	Composite wood and agrifiber products, defined as
particleboard, medium-density fiberboard (MDF), plywood, oriented-strand board
(OSB), wheatboard, strawboard, panel substrates and door cores, must contain no
added urea-formaldehyde resins.

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	TENANT IMPROVEMENT STANDARDS

	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	b.	 	Laminating Adhesives used to fabricate on-site and shop applied
assemblies containing these laminate adhesives must contain no added
urea-formaldehyde.

	 	2.	 	Plain Sliced Red Oak

	 	a.	 	Field-applied Light Oak stain to match existing; stain shall comply
with the VOC limits identified in the “Paints and Coatings” section below.

	 	3.	 	20 minute label and “S” label when required by the local building jurisdiction

	 	C.	 	Product:

	 	1.	 	Manufacturer: Western Oregon Door, Marshfield Doors, or equal.

FRAMES

	 	A.	 	Interior

	 
	 	 	 	Knock down hollow metal 5 1/8” X 3’0” x 9’-0” painted as specified.
	 
	 	B.	 	Corridor

	 
	 	 	 	UL Rated knock down hollow metal 3’0” x 9-0” painted as specified.

HARDWARE

	 	A.	 	Single Interior Passage (lever passage set):

	 	 	 	 	 	 	 	 	 

	 
	 	2 pair Butts	 	Hager or equal	 	Brushed Aluminum	 	 
	 
	 	1 Passage Set	 	D10S	 	Schlage	 	626 (Satin Chromium Plated)
	 
	 	1 Stop (wall)	 	60C	 	Glynn-Johnson	 	—

	 	B.	 	Single Interior Lockset (keyed lever lockset):

	 	 	 	 	 	 	 	 	 

	 

	 	2 pair Butts
	 	Hager or equal
	 	Brushed Aluminum	 	 
	 

	 	1 Lock Set
	 	D50PD
	 	Schlage
	 	626 (Satin Chromium Plated)
	 

	 	1 Stop (wall)
	 	60C
	 	Glynn-Johnson
	 	—

	 	C.	 	Single Corridor Lockset (mortised keyed lever lockset):

	 	 	 	 	 	 	 	 	 

	 

	 	2 pair Butts
	 	Hager or equal
	 	Brushed Aluminum	 	 
	 

	 	1 Lock Set
	 	L9050
	 	Schlage
	 	625 (Bright Chromium Plated)
	 	 	1 Stop wall or floor stop as specified	 	 
	 	 	1 Closer	 	4041 CUSH series      LCN	 	Brushed aluminum finish
	 	 	(Note, never mount closer on hallway side of door)

	 	D.	 	Electric Strike, when required for security:

	 
	 	 	 	Von Duprin; refer to Specification Section 08710 for product.
	 
	 	E.	 	Panic Device, when required for Code compliance:

	 
	 	 	 	Dorma; refer to Specification Section 08710 for product.

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	TENANT IMPROVEMENT STANDARDS

	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

CEILING

	 	A.	 	Grid:
	 
	 	 	 	Armstrong: Donn DXL fire rated 15/16” 2’x4’ exposed tee ceiling grid, matte white with
lateral sway bracing and compression struts at 12’-0” on center
	 
	 	B.	 	Ceiling Tile:
	 
	 	 	 	Armstrong: 755 Fissured Lay-In Acoustical Ceiling Tile

ADHESIVES & SEALANTS

	 	A.	 	General Requirements:

	 	1.	 	All sealants and adhesives used in the building interior (i.e. inside
of the exterior moisture barrier) must not exceed the VOC content limits of South Coast
Air Quality Management District (SCAQMD) Rule #1168 (in effect on January 1, 2003 and
rule amendment dated October 3, 2003) or Green Seal Standard GC-36 (in effect on
October 19, 2000.
	 
	 	2.	 	Refer to Section 01352 for a table of VOC requirements per application as
listed in the referenced SCAQMD standard.

	 	B.	 	Interior sealant/caulk, typical

	 	 	 

	Type:

	 	(Type II) Single component, acrylic latex sealant
	ASTM Standards:

	 	C834, D3960
	VOC:

	 	31g / liter
	Movement capability:

	 	7.5% extension and 7.5% compression
	Manufacturer:

	 	Pecora
	Product:

	 	AC-20 + Silicone (AC-20 FTR rated conditions)
	Features:

	 	Non-sag (FTR designation at fire rated conditions)
	Backer Rod:

	 	Soft Polyethylene or Denver Foam (Ultra block at fire rated conditions)
	Primer:

	 	Refer to manufacturer’s product data
	Color:

	 	To be selected by Architect or Interior Designer from manufacturer’s
full line of colors

PAINTS & COATINGS

	 	A.	 	General Requirements:

	 	1.	 	Interior paints and coatings applied on-site must meet the limitations and
restrictions concerning chemical components set by:

	 	a.	 	Green Seal-11 for Interior Paint
	 
	 	b.	 	Green Seal GS-03 for Anti-Corrosive / Anti-Rust Paint
	 
	 	c.	 	South Coast Rule #1113 for Architectural Coatings for other
paints and coatings.

	 	2.	 	Refer to Section 01352 for a table of VOC requirements per application as
listed in the applicable reference standard.

	 	B.	 	Paint Systems

	 	1.	 	Galvanizing Repair Paint:

	 	a.	 	ZRC Worldwide, www.zrcworldwide.com
	 
	 	b.	 	ZRC Zero VOC Water-Based Galvanizing Compound

	 	2.	 	Finish Paint:

	 	a.	 	Pittsburgh Paints or equal
	 
	 	b.	 	One primer coat and two finish coats typical

	 	3.	 	For applications other than those specifically identified herein, refer to
requirements listed in the “Paints & Coatings” section of Specification Section 01352.

4

 

	 	 	 

	TENANT IMPROVEMENT STANDARDS

	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Dry Thickness	 	 	 	 	 	 	 	VOC Limits
	Substrate	 	Finish	 	Coat	 	(minimum)	 	Product Number	 	Product Name	 	(g/L)
	Drywall

	 	Egg-Shell
	 	1st
	 	1.0 mils
	 	 	6-2	 	 	SpeedHide®
Interior Latex
Sealer Quick Drying
	 	98 g/L
	 

	 	 	 	2nd
	 	1.5 mils
	 	 	6-411	 	 	SpeedHide® Interior
Enamel Eggshell
Latex
	 	73 g/L
	 

	 	 	 	3rd
	 	1.5 mils
	 	 	6-411	 	 	SpeedHide®
Interior Enamel
Eggshell Latex
	 	73 g/L
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Semi-Gloss
	 	1st
	 	1.0 mils
	 	 	6-2	 	 	SpeedHide® Interior
Latex Primer Sealer
	 	98 g/L
	 

	 	 	 	2nd
	 	1.2 mils
	 	 	6-8510	 	 	SpeedHide®
Hi-Lustre
Semi-Gloss Latex
Enamel
	 	106.8 g/L
	 

	 	 	 	3rd
	 	1.2 mils
	 	 	6-8510	 	 	SpeedHide®
Hi-Lustre
Semi-Gloss Latex
Enamel
	 	106.8 g/L
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Wood

	 	Stained
	 	1st
	 	—
	 	 	44500	 	 	Olympic Interior
Oil Stain Tint Base
	 	240 g/L
	 

	 	 	 	2nd
	 	—
	 	42784-gloss
42786-satin
	 	Olympic Interior
Water Based
Polyurethane Gloss
	 	<250 g/L
	 

	 	 	 	3rd
	 	—
	 	42784-gloss
42786-satin
	 	Olympic Interior
Water Based
Polyurethane Gloss
	 	<250 g/L
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Wood

	 	Clear Finish
	 	1st
	 	—
	 	42784-gloss
42786-satin
	 	Olympic Interior
Water Based
Polyurethane Gloss
	 	<250 g/L
	 

	 	 	 	2nd
	 	—
	 	42784-gloss
42786-satin
	 	Olympic Interior
Water Based
Polyurethane Gloss
	 	<250 g/L
	 

	 	 	 	3rd
	 	—
	 	42784-gloss
42786-satin
	 	Olympic Interior
Water Based Polyurethane Gloss
	 	<250 g/L
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Wood

	 	Painted Semi-Gloss
	 	Primer
	 	1.2 mils
	 	 	17-955	 	 	SEAL GRIP® Interior
Latex Enamel
Undercoater
	 	96 g/L
	 

	 	 	 	1st
	 	1.2 mils
	 	 	6-8510	 	 	SpeedHide®
Hi-Lustre
Semi-Gloss Latex
Enamel
	 	106.8 g/L
	 

	 	 	 	2nd
	 	1.2 mils
	 	 	6-8510	 	 	SpeedHide®
Hi-Lustre Semi-Gloss Latex
Enamel
	 	106.8 g/L

FLOOR COVERING

	 	A.	 	Carpet:

	 	1.	 	General Requirements:

	 	a.	 	All carpet must meet or exceed the Carpet and Rug Institute’s (CRI)
Green Label Plus testing and product requirements listed in the “Carpet” section of
Section 01352.
	 
	 	b.	 	All carpet pad must meet or exceed the Carpet and Rug Institute’s (CRI)
Green Label testing and product requirements listed in the “Carpet” section of
Section 01352.
	 
	 	c.	 	All carpet adhesive must meet the requirements listed in the “Adhesives
and Sealants” section of Specification Section 01352.

	 	2.	 	Product:

	 	a.	 	Patcraft and Designweave PDQ-1/PDQ-2 or equal.

	 	B.	 	Base:

	 	1.	 	General Requirements:

	 	a.	 	All wall base adhesive must meet the requirements listed in the
“Adhesives and Sealants” section of Specification Section 01352.

	 	2.	 	Product:

	 	a.	 	Burke: 4” high Type TS (Rubber) BurkeBase, or approved equal.

	 	C.	 	Linoleum:

	 	1.	 	General Requirements:

	 	a.	 	All flooring adhesive must meet the requirements listed in the
“Adhesives and Sealants” section of Specification Section 01352.
	 
	 	b.	 	Non-carpet finished flooring shall be FloorScore-certified.

5

 

	 	 	 

	TENANT IMPROVEMENT STANDARDS

	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	2.	 	Product:

	 	a.	 	Forbo MCT or equal.

CASEWORK

	 	A.	 	Standard casework:

	 	1.	 	General Requirements:

	 	a.	 	Particle Board Core for Laminate Veneer

	 	1.	 	Composite wood and agrifiber products, defined as
particleboard, medium-density fiberboard (MDF), plywood, oriented-strand board
(OSB), wheatboard, strawboard, panel substrates and door cores, must contain no
added urea-formaldehyde resins.
	 
	 	2.	 	FSC Certified Wood substrate(s) or Rapidly Renewable
substrate(s) such as wheatboard may be used at tenant’s direction in lieu of
particle board core.

	 	b.	 	Adhesives:

	 	1.	 	Laminate Adhesives used to fabricate on-site and shop applied
assemblies containing these laminate adhesives must contain no added urea
formaldehyde.
	 
	 	2.	 	All sealants and adhesives used in the building
interior (i.e. inside of the exterior moisture barrier) must not exceed the VOC
content limits of South Coast Air Quality Management District (SCAQMD) Rule
#1168 (in effect on January 1, 2003 and rule amendment dated October 3, 2003)
or Green Seal Standard GC-36 (in effect on October 19, 2000); refer to the
requirements listed in the “Adhesives and Sealants” section of Specification
Section 01352.

	 	2.	 	Finish and Material Schedule:

	 	 	 	 	 

	 

	 	a. Exterior of cabinet:
	 	Laminate Plastic
	 
	 

	 	b. Inside of cabinets:
	 	Melamine
	 
	 

	 	c. Shelves — inside cabinets
	 	Melamine
	 
	 

	 	d. Shelves — exposed
	 	Laminate Plastic
	 
	 

	 	e. Drawer Fronts and edges:
	 	Laminate Plastic
	 
	 

	 	f. Drawers — inside
	 	Melamine
	 
	 

	 	g. Doors — all surfaces:
	 	Laminate Plastic
	 
	 

	 	h. Countertop:
	 	Laminate Plastic or as determined by tenant

	 	B.	 	Hardware:

	 	1.	 	Standard chrome pulls for cabinet drawers and doors.

WINDOW COVERINGS

	 	A.	 	Exterior window blinds:

	 	1.	 	Graber 31/2” PVC “Suntura” vertical perforated matte white vinyl, suspended from
a Graber G-71, 2” x 1-3/4” headrail.

	 	B.	 	Interior window blinds:

	 	1.	 	1” wide slat horizontal mini-blinds.

ELECTRICAL

	 	A.	 	Power and low voltage systems

	 	1.	 	All wiring shall be No. 12 minimum dual rated THHN/THWN.
	 
	 	2.	 	All homeruns shall be in EMT conduit, 0.5” minimum.
	 
	 	3.	 	MC cable may only be used from homerun junction boxes down wall to branch
circuit devices.

6

 

	 	 	 

	TENANT IMPROVEMENT STANDARDS

	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	4.	 	Products shall be:

	 	a.	 	Electrical Wall Receptacle:

	 	1.	 	NEMA 5-20R, 120v, Specification grade commercial series Hubbell
CR Series or equal. Color shall be beige, or matching existing. Receptacle
shall have side wiring and be rated a minimum of 15 amps at 120 volts. Provide
GFCI receptacles within 6’ of sinks. Push-in wire connections are not
acceptable.

	 	b.	 	Telephone or Data Wall Outlet:

	 	1.	 	Plaster ring in wall with a pull string. All communication
outlets shall be properly mounted into a supporting ring or box made to accept
the outlet or cover. Outlet covers will not be screwed into drywall. Cover
plate and non rated communication wiring by Tenant. Communications cover
plates to match color of electrical outlets.

	 	B.	 	Lighting system

	 	1.	 	All lighting in tenant suite shall be installed with automatic controls via
occupancy sensors.
	 
	 	2.	 	All Light fixtures shall be dual level switched (either a,b or checkerboard as
installation permits).
	 
	 	3.	 	Lighting power densities (W/sf) shall be provided to exceed the requirements of
the current California Title 24 lighting standards.
	 
	 	4.	 	Task lighting shall be provided by tenant for a minimum of 51% of all
individual workstations.
	 
	 	5.	 	Products shall be:

	 	a.	 	Light Switch:

	 	1.	 	20A, 120/277v, Specification grade commercial series
	 
	 	2.	 	Hubbell CS Series or equal.
	 
	 	3.	 	Color shall be beige, or matching existing.

	 	b.	 	Occupancy Sensor:

	 	1.	 	Hubbell wall mount AT277W single switch
	 
	 	2.	 	Hubbell wall mount WS1277W2 dual switch
	 
	 	3.	 	Watt Stopper wall mount WS-200
	 
	 	4.	 	Watt Stopper ceiling mount WPIR
	 
	 	5.	 	Watt Stopper ceiling mount CX-100

	 	c.	 	Light Fixture — Recessed troffer:

	 	1.	 	Lithonia, 2’x4’ 18 cell parabolic louver, 2 lamp cross section,
T8 lamps (lamp MUST NOT exceed a maximum 70 picograms per lumen-hour, confirm
all lamp purchases with GBS prior to ordering) with high ballast factor
electronic ballast. Lamp: TBD. (Note: original 3-lamp light fixtures
converted to 2-tube).

	 	d.	 	Light Fixture — Downlights:

	 	1.	 	Interior: Triple Tube horizontal downlight (1-lamp) by
Lightolier. Catalog #8037CLW-7142BE277. Clear iridescence free white flange
reflector with (1) 42W triple tube lamp. (lamp MUST NOT exceed a maximum 70
picograms per lumen-hour, confirm all lamp purchases with GBS prior to
ordering).

	 	e.	 	Light Fixture — Exit Sign:

	 	1.	 	Exitronix Value Series VEX/U/BP/WB/WH series with “green” LED.

	 	f.	 	Light Fixture — Task Lighting:

	 	1.	 	Task lighting shall have either LED or fluorescent lamp
sources. Options include table lamps or integrated casework fixtures provided
they have on/off switching available at each work station. A minimum of 51% of
individual workstations shall be provided with task lights.

	 	C.	 	Appliances

	 	1.	 	All appliances, such as refrigerators, dishwashers, etc. shall be Energy Star
Rated.

	 	D.	 	Insta-hot

	 	1.	 	Chronomite Insta-flow, #S-60LP, 208v unit.

7

 

	 	 	 

	TENANT IMPROVEMENT STANDARDS

	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	E.	 	Adhesives and sealants:

	 	1.	 	All sealants and adhesives used in the building interior (i.e. inside of the
exterior moisture barrier) must not exceed the VOC content limits of South Coast Air
Quality Management District (SCAQMD) Rule #1168 (in effect on January 1, 2003 and rule
amendment dated October 3, 2003) or Green Seal Standard GC-36 (in effect on October 19,
2000); refer to the requirements listed in the “Adhesives and Sealants” section of
Specification Section 01352.

H.V.A.C.

	 	A.	 	System:

	 	1.	 	Lenox PMZ multi-zone with web based Tridium control system and Honeywell
sensors.
	 
	 	2.	 	Modify supply and return ductwork to meet tenant layout requirements.

	 	a.	 	Ensure code required outside air is provided at all locations.
	 
	 	b.	 	Supply air ventilation shall be designed and installed in accordance
with ASHRAE Standard 62-2004, Ventilation for Acceptable Indoor Air Quality and
California Title 24. Locate supply grilles to ensure that all occupied spaces will
receive adequate ventilation.
	 
	 	c.	 	Ductwork shall be sealed, well-insulated, and sized correctly.
	 
	 	d.	 	New tenant HVAC&R systems shall not use CFC-based refrigerants; small
HVAC&R units (defined as containing less than 0.5 pounds of refrigerant), standard
refrigerators, small water coolers and any other cooling equipment that contains
less than 0.5 pounds of refrigerant are not considered part of the base building
system and are exempt.

	 	3.	 	The zoning of air conditioning and placement of thermostats, both existing and
new, shall be reviewed and assessed for appropriateness.

	 	B.	 	Components:

	 	1.	 	Flexible Duct:

	 	a.	 	Shall be R-4.2 insulated. Maximum length to be 5 feet, sized as
follows:
	 
	 	b.	 	0-210 CFM 8” diameter
	 
	 	c.	 	211-380 CFM 10” diameter
	 
	 	d.	 	381-600 CFM 12” diameter
	 
	 	e.	 	M 14” diameter

	 	2.	 	Rigid duct:

	 	a.	 	Shall be sheet metal SMACNA Class 1, sized same as for flexible duct.

	 	3.	 	Supply and Return Grilles:

	 	a.	 	Shall match existing

	 	C.	 	Adhesives and sealants:

	 	1.	 	All sealants and adhesives used in the building interior (i.e. inside of the
exterior moisture barrier) must not exceed the VOC content limits of South Coast Air
Quality Management District (SCAQMD) Rule #1168 (in effect on January 1, 2003 and rule
amendment dated October 3, 2003) or Green Seal Standard GC-36 (in effect on October 19,
2000); refer to the requirements listed in the “Adhesives and Sealants” section of
Specification Section 01352.

PLUMBING

	 	A.	 	System:

	 	4.	 	Design/build cold water, waste and vent plumbing system to meet tenant
requirements.
	 
	 	2.	 	Optimize the use of potable water resources to conserve community water quality
and availability; use high performance fixtures and equipment: i.e. low-flow and
pressure assist toilets and urinals; low flow faucet aerators.

	 	B.	 	Product:

	 	1.	 	Sink: Revere, Puritan single bowl: PBLS2521D65SN or equal; provide a 0.5 GPM
aerator at each sink.
	 
	 	2.	 	Faucet: Delta, single lever: model 100 or equal; provide a 0.5 GPM aerator at
each sink.
	 
	 	3.	 	Dishwasher: Asko model 1706 (or equal) self heating with white or black
standard finish.

	 	C.	 	Adhesives and sealants:

	 	1.	 	All sealants and adhesives used in the building interior (i.e. inside of the
exterior moisture barrier) must not exceed the VOC content limits of South Coast Air
Quality Management

8

 

	 	 	 

	TENANT IMPROVEMENT STANDARDS

	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	 	 	District (SCAQMD) Rule #1168 (in effect on January 1, 2003 and rule amendment dated
October 3, 2003) or Green Seal Standard GC-36 (in effect on October 19, 2000); refer to
the requirements listed in the “Adhesives and Sealants” section of Specification Section
01352.

FIRE SPRINKLERS

	 	A.	 	System to include:

	 	1.	 	Engineering of main piping, branch line piping, hangers, seismic bracing and
drops to below the ceiling with sprinkler heads and connection to water supply.
	 
	 	2.	 	Do not install fire-suppression systems that contain ozone-depleting substances
(CFCs, HCFCs or halons).

	 	B.	 	Sprinkler Heads:

	 	1.	 	Install chrome semi recessed 165 degree heads aligned and in center of tile.

	 	C.	 	Adhesives and sealants:

	 	1.	 	All sealants and adhesives used in the building interior (i.e. inside of the
exterior moisture barrier) must not exceed the VOC content limits of South Coast Air
Quality Management District (SCAQMD) Rule #1168 (in effect on January 1, 2003 and rule
amendment dated October 3, 2003) or Green Seal Standard GC-36 (in effect on October 19,
2000); refer to the requirements listed in the “Adhesives and Sealants” section of
Specification Section 01352.

9

 

EXHIBIT A-4

CONSTRUCTION WASTE MANAGEMENT REQUIREMENTS

(GENERAL

	1.01	 	RELATED DOCUMENTS

	 	A.	 	Drawings and general provisions of the Contract, including General and Supplementary
Conditions and other Division 1 Specification Sections, apply to this Section.
	 
	 	B.	 	This Section describes demolition and construction waste management and recycling goals
and includes administrative and procedural requirements for the development and execution
of a construction waste management plan.
	 
	 	C.	 	Related Sections include the following:

	 	1.	 	Division 1 Section “Environmental Procedures” for administrative procedures to
achieve environmental goals for the Work.
	 
	 	2.	 	Division 1 Section “Temporary Facilities and Controls” requirements for
installation, maintenance and removal of temporary utilities, controls, and facilities
during construction.
	 
	 	3.	 	Division 2 Section “Site Demolition” requirements for salvage and recycling of
demolition debris.

	1.02	 	CONSTRUCTION WASTE MANAGEMENT GOALS

	 	A.	 	The Owner has established that this Project shall generate the least amount of waste
possible and that processes that ensure the generation of as little waste as possible due
to error, poor planning, breakage, mishandling, contamination, or other factors shall be
employed.
	 
	 	B.	 	Of the inevitable waste that is generated, as many of the waste materials as
economically feasible shall be reused, salvaged, or recycled. Waste disposal in landfills
shall be minimized.
	 
	 	C.	 	Diversion Goal: A minimum 70% if total project waste shall be diverted from the
landfill.
	 
	 	D.	 	With regard to these goals the Contractor shall develop, for the Owner and Architect’s
review, a Waste Management Plan for this Project.

	1.03	 	SUBMITTALS

	 	A.	 	Construction Waste Management Plan.
	 
	 	B.	 	Periodic and final summary report of waste materials recycled, salvaged and sent to the
landfill
	 
	 	C.	 	Weight tickets for all waste materials removed from the site during demolition and
construction.

	1.04	 	CONSTRUCTION WASTE MANAGEMENT PLAN

	 	A.	 	Draft Waste Management Plan: Prior to the Pre-Construction Conference, or prior to any
waste removal, whichever occurs sooner, the Contractor shall meet with the Owner designated
representative(s) and Architect to discuss preparation of a Draft Waste Management Plan.
The Draft Plan shall contain the following:

	 	1.	 	Analysis of the proposed jobsite waste to be generated. Include the types of
material to be generated and estimated quantity of each material (in tons).
	 
	 	2.	 	Landfill options: Estimated cost of disposing of all project waste in transfer
station(s)/landfill(s), name of transfer station(s)/landfill(s) where Project waste
would normally be disposed of and tipping fees. Estimated cost of transportation and
other relevant costs and fees.
	 
	 	3.	 	Alternatives to Landfilling: A list of each material proposed to be salvaged
or recycled during the course of the Project. The list of these materials is to
include, at a minimum, the following materials:

	 	a.	 	Concrete
	 
	 	b.	 	Asphalt
	 
	 	c.	 	Bricks
	 
	 	d.	 	Concrete Masonry Units (CMU)
	 
	 	e.	 	Landclearing debris

1

 

			
	SECTION 01505

CONSTRUCTION WASTE MANAGEMENT
	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	f.	 	Clean dimensional wood
	 
	 	g.	 	Plywood, OSB, and particle board
	 
	 	h.	 	Cardboard
	 
	 	i.	 	Paper
	 
	 	j.	 	Metals
	 
	 	k.	 	Gypsum Wallboard
	 
	 	l.	 	Carpet
	 
	 	m.	 	Paint
	 
	 	n.	 	Plastic
	 
	 	o.	 	 Glass
	 
	 	p.	 	Ridged foam insulation
	 
	 	q.	 	Beverage Containers

	 	4.	 	Material Handling Procedures: A description of the means by which any waste
materials identified in item (3) above will be protected from contamination, and a
description of the means to be employed in recycling the above materials consistent
with requirements for acceptance by designated facilities.
	 
	 	5.	 	Transportation: A description of the means of transportation of the recyclable
materials (whether materials will be site-separated and self-hauled to designated
centers, or whether mixed materials will be collected by a waste hauler and removed
from the site) and destination of materials. The final destination must be approved by
Owner designated representative(s).
	 
	 	6.	 	Source Reduction: List processes that minimize waste such as working with
suppliers to take back or buy back substandard, rejected or unused items and to deliver
supplies using returnable pallets and containers. Also include procedures to minimize
breakage, mishandling, contamination, and other factors that reduce job site waste.
	 
	 	7.	 	Meetings: A description of the regular meetings to be held to address waste
management. Contractor shall conduct Construction Waste Management meetings. Meetings
shall include subcontractors affected by the Waste Management Plan as well as Owner
designated representative(s). At a minimum, waste management goals and issues shall be
discussed at the following meetings: pre-bid meeting, pre-construction meeting, and
regularly scheduled job-site meetings.
	 
	 	8.	 	Indicate any instance where compliance with requirements of this specification
does not appear to be possible and request resolution from the Owner and Architect.

	 	B.	 	Waste Management Plan Review Meeting: Once the Owner and Architect have reviewed the
Draft Waste Management Plan and prior to any waste removal at the site, schedule and
conduct a follow-up meeting agreed upon during the meeting identified in item 1.5 A. The
purpose of the meeting is to review the Draft Waste Management Plan and discuss procedures,
schedules and specific requirements for waste materials recycling and disposal. Discuss
coordination and interface between the Contractor and other construction activities.
Identify and resolve potential compliance problems with requirements. Record minutes of
the meeting, identifying all conclusions reached and matters requiring further resolution.

	 	1.	 	Attendees: The Contractor and related Contractor personnel associated with the
work of this section, including personnel to be in charge of the waste management
program, Architect, Owner and such additional personnel as the Architect or Owner deem
appropriate.

	 	C.	 	Final Construction Waste Management Plan: Make any revisions to the Draft Waste
Management Plan agreed upon during the meeting identified in item 1.5 C above and
incorporate resolutions agreed to be made subsequent to the meeting. Submit the revised
plan to the Owner and Architect for approval within 10 calendar days of the meeting.

PART 2 —  PRODUCTS (NOT USED)

PART 3 —  EXECUTION

	3.01	 	IMPLEMENTATION OF CONSTRUCTION WASTE MANAGEMENT PLAN

2

 

			
	SECTION 01505

CONSTRUCTION WASTE MANAGEMENT
	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	A.	 	Manager: The Contractor shall designate an on-site party (or parties) responsible for
instructing workers and overseeing and documenting results of the Waste Management Plan for
the Project.
	 
	 	B.	 	Distribution: The Contractor shall distribute copies of the Waste Management Plan to
the Job Site Foreman, each Subcontractor, the Owner, and the Architect.
	 
	 	C.	 	Instruction: The Contractor shall provide on-site instruction of appropriate
separation, handling, and recycling, salvage, reuse, and return methods to be used by all
parties at the appropriate stages of the Project.
	 
	 	D.	 	Separation facilities: The Contractor shall lay out and label a specific area to
facilitate separation of materials for potential recycling, salvage, reuse, and return.
Recycling and waste bin areas are to be kept neat and clean and clearly marked in order to
avoid contamination of materials.
	 
	 	E.	 	Hazardous Waste: Hazardous wastes shall be separated, stored, and disposed of
according to local regulations.
	 
	 	F.	 	Application for Progress Payments: The Contractor shall submit with each Application
for Progress Payment a Summary of Waste Generated by the Project. Failure to submit this
information shall render the Application for Payment incomplete and shall delay Progress
Payment. The Summary shall be submitted on a form acceptable to the Owner and shall
contain the following information:

	 	1.	 	The amount of waste (in tons) landfilled from the Project, the identity of the
transfer station/landfill, the total amount of tipping fees paid at the landfill, the
transportation cost, and the total disposal cost. Include manifests, weight tickets,
receipts, and invoices.
	 
	 	2.	 	For each material recycled, reused, or salvaged from the Project, the amount
(in tons), the date removed from the jobsite, the receiving party, the transportation
cost, the amount of any money paid or received for the recycled or salvaged material,
and the net total cost or savings of salvage or recycling each material. Attach
manifests, weight tickets, receipts, and invoices.

	 	G.	 	At the end of the project the Contractor shall submit a Final Waste Management Report.
The Report shall be submitted on a form acceptable to the Owner and shall contain the
following information:

	 	1.	 	The total amount of waste landfilled from the Project, the identity of the
transfer station/landfill, the total amount of tipping fees paid at the landfill, the
transportation cost, and the total disposal cost.
	 
	 	2.	 	The total amount (in tons) of each material recycled, reused, or salvaged from
the Project, the receiving party, and net cost savings or additional costs resulting
from separating and recycling (versus landfilling) each material. The total amount of
all materials recycled in tons and the total net cost savings or additional costs.
	 
	 	3.	 	The total percentage of material recycled in tons.

END OF SECTION 01505

3

 

EXHIBIT A-5

LEED REQUIREMENTS

PART 1 — GENERAL

	1.05	 	SUMMARY

	 	A.	 	This section includes general requirements and procedures for compliance with certain
U.S. Green Building Council (USGBC) LEED® prerequisites and credits needed for the Project
to obtain LEED certification.

	 	1.	 	Other LEED prerequisites and credits needed to obtain LEED Certification are
dependent on material selections and may not be specifically identified as LEED
requirements. Compliance with requirements needed to obtain LEED prerequisites and
credits may be used as one criterion to evaluate substitution requests.
	 
	 	2.	 	Additional LEED prerequisites and credits needed to obtain the indicated LEED
certification are dependent on the Architect’s design and other aspects of the Project
that are not part of the Work of this contract.

	1.06	 	RELATED SECTIONS

	 	A.	 	Related sections include the following:

	 	1.	 	Section 01505 — Construction Waste Management
	 
	 	2.	 	Section 01440 — Construction IAQ Management
	 
	 	3.	 	Divisions 1 through 16 Section for LEED Requirements specific to the Work of
each of these Sections. These requirements may or may not include reference to LEED.

	1.07	 	DEFINITIONS

	 	A.	 	LEED-EB OM: Leadership in Energy and Environmental Design — Existing Buildings
Operations and Maintenance. LEED is a national rating system for green buildings created
by the US Green Building Council. All references to LEED throughout the Construction
Documents shall mean LEED-EB OM.
	 
	 	B.	 	Reused Material: Salvaged, refurbished or reused materials, products and
furnishings that have been returned to active use in the same or related capacity as their
original use.
	 
	 	C.	 	Recycled Content: The percentage by weight of constituents that have been
recovered or otherwise diverted from the solid waste stream, either during the
manufacturing process (pre-consumer or post-industrial), or after consumer use
(post-consumer). (Recycled content = post-consumer + 1/2 post-industrial).

	 	1.	 	Pre-consumer (post-industrial) recycled content comes from process waste that
one industry has sold or traded with another through the marketplace. This definition
does not include in-house trimmings, which are normally fed back into the same
manufacturing process.
	 
	 	2.	 	Post-consumer recycled content comes from consumer waste, much of which comes
from residential curbside recycling programs for aluminum, glass, plastic and paper.
To be a feedstock the raw materials need to have served a useful purpose or content
before being used again.
	 
	 	3.	 	Scraps, spills or other waste from the original manufacturing process that are
combined with other constituents after a minimal amount of reprocessing for use in the
further production of the same product are not recycled materials.

	 	D.	 	Regional Materials: Materials that are harvested (extracted or recovered),
processed and manufactured within a radius of 500 miles from the project location.
	 
	 	E.	 	Rapidly Renewable Materials: Materials made from agricultural products that are
typically harvested within a ten-year or shorter cycle. Rapidly renewable materials
include products made from straw, jute, flax, bamboo, cotton, vegetable oil, wool or
sunflower seed hulls.
	 
	 	F.	 	Chain-of-Custody Certificate: A certificate signed by a manufacturer certifying
a wood product was obtained from forests certified by a Forest Stewardship Council (FSC)
accredited certification body to comply with FSC 1.2, “Principals and Criteria.”
Certificates shall include evidence that the mill and distributor are certified for
chain-of-custody by a FSC-accredited certification body.

1

 

			
	SECTION 01352

LEED® REQUIREMENTS
	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	G.	 	Composite Wood and Agrifiber Board: Manufactured materials made from wood or
agricultural fibers manufactured with bonding agents. Composite wood materials include
particle board, medium density fiberboard (MDF), plywood, strawboard, wheatboard, panel
substrates and door cores.

	1.08	 	SUBMITTALS

	 	A.	 	General: Submit additional LEED related submittals included in other Sections of the
Specifications.
	 
	 	B.	 	LEED submittals are in addition to other submittals. If submitted item is identical to
that submitted to comply with other requirements, submit duplicate copies as a separate
submittal to verify compliance with indicated LEED requirements.
	 
	 	C.	 	Project Materials Cost Data: Provide the necessary cost data requested on the LEED
Materials Calculator (sample provided) in PART 3 LEED TOOLS, including the itemized
costs/weight of specific materials being tracked for the LEED credits listed in this
specification. All material costs exclude labor and equipment and the total materials cost
is exclusive of Specialties, Conveying Systems and Mechanical and Electrical components.
	 
	 	D.	 	LEED Action Plans: Within 30 days of Notice to Proceed submit the following action
plans:
	 
	 	 	 	Credit MRc9 — Construction Waste Management Plan: Construction waste management plan
complying with Division 1 Section “Construction Waste Management.”
	 
	 	 	 	Credit EQc1.5 — Construction IAQ Management Plan: Construction indoor air quality
management plan complying with Division 1 Section “Construction IAQ Management.”
	 
	 	E.	 	LEED Performance Period Progress Reports: Submit reports summarizing progress in
construction and purchasing activities related to the following credits:

	 	1.	 	Credit MRc2 — Sustainable Purchasing—Durable Goods: Summary of product data
and material costs collected for all electric powered equipment or furniture that have
been purchased or installed.
	 
	 	2.	 	Credit MRc3 —  Sustainable Purchasing—Facility Alterations and Additions:
Summary of product data and material costs collected for all materials for facility
renovations, demolitions, refits and new construction additions that have been
purchased or installed.
	 
	 	3.	 	Credit MRc8 — Solid Waste Management—Durable Goods: Summary of diversion
method and material diversion cost or weight for all electric powered equipment or
furniture that have been disposed.
	 
	 	4.	 	Credit MRc9 — Solid Waste Management—Facility Alterations and Additions:
Construction waste reduction progress reports complying with Division 1 Section
“Construction Waste Management.”
	 
	 	5.	 	Credit EQc1.5 — Construction IAQ Management Plan: Construction indoor air
quality management reports complying with Division 1 Section “Construction IAQ
Management.”

	 	F.	 	LEED Documentation Submittals: For each Section of the Specification, submit the
following for each applicable LEED Credit.

	 	1.	 	Credit MRc2 — Sustainable Purchasing—Durable Goods: Summary of product data
and material costs collected for all electric-powered equipment or furniture that have
been purchased or installed.
	 
	 	2.	 	Credit MRc3 —  Sustainable Purchasing—Facility Alterations and Additions:
Summary of product data and material costs collected for all materials for facility
renovations, demolitions, refits and new construction additions that have been
purchased or installed.

	 	a.	 	Materials Reuse:

	 	1.	 	Cut sheet or Receipts for materials used or installed on the
Project, indicating sources and costs for salvaged and refurbished materials
	 
	 	2.	 	Material cost: If the cost of the reused material is lower than
a comparable new material, include the cost of the new material along with an
explanation of assumptions made regarding material value.

	 	b.	 	Recycled Content:

	 	1.	 	Cut sheet, product literature or letter from manufacturer that
clearly indicates the percentage by weight of post-consumer and pre-consumer
(post-industrial) recycled content. (Recycled content = post-consumer + 1/2
post-industrial)
	 
	 	2.	 	Include statement indicating costs for each product having
recycled content.

2

 

			
	SECTION 01352

LEED® REQUIREMENTS
	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	c.	 	Regional Materials:

	 	1.	 	Cut sheet, product literature or letter from manufacturer
indicating the location of harvest, processing and manufacturer.
	 
	 	2.	 	Include statement indicating cost and distance from
manufacturer to Project for each regionally manufactured material.

	 	d.	 	Rapidly Renewable Materials:

	 	1.	 	Cut sheet, product literature or letter from manufacturer
indicating that the material is manufactured with rapidly renewable resources.
	 
	 	2.	 	Include statement indicating costs for each rapidly renewable
material.

	 	e.	 	Certified Wood:

	 	1.	 	Copies of vendor invoices for each certified wood product.
	 
	 	2.	 	FSC chain-of-custody certificates for each certified wood
product with chain-of-custody number indicated.
	 
	 	3.	 	Include statement indicating costs for each product containing
certified wood.

	 	f.	 	Adhesives and Sealants:

	 	1.	 	Product data and Material Safety Data Sheets (MSDS) for all
adhesives and sealants used inside the building’s moisture barrier indicating
the Volatile Organic Compound (VOC) content of each product and verifying that
each product meets the LEED requirements.
	 
	 	2.	 	List of all installed adhesives and sealants including
manufacturer, quantity used in gallons and VOC content.

	 	g.	 	Paints and Coatings:

	 	1.	 	Product data and Material Safety Data Sheets (MSDS) for all
adhesives and sealants used inside the building’s moisture barrier indicating
the Volatile Organic Compound (VOC) content of each product and verifying that
each product meets the LEED requirements.
	 
	 	2.	 	List of all installed adhesives and sealants including
manufacturer, quantity used in gallons and VOC content.

	 	h.	 	Carpet: Cut sheets or letter from manufacturer clearly indicating that
all carpet products meet the CRI Green Label Test Program requirements.
	 
	 	i.	 	Hard Surface Flooring: Cut sheets or letter from manufacturer clearly
indicating that all carpet products meet the Certification Program requirements.
	 
	 	j.	 	Composite Wood: Cut sheets clearly indicating the bonding agents used
for each composite wood and agrifiber product and assembly used in the project and
demonstrating that no added urea-formaldehyde resins are used in these products.

	 	3.	 	Credit MRc8 — Solid Waste Management—Durable Goods: Summary of diversion
method and material diversion cost/weight for all electric powered equipment or
furniture that have been disposed.

	 	a.	 	Solid Waste Management plan.
	 
	 	b.	 	Complete LEED construction waste calculations.
	 
	 	c.	 	Itemized waste hauling certificates/receipts for all waste removed from
the Project site.

	 	4.	 	Credit MRc9 — Solid Waste Management—Facility Alterations and Additions:
Construction waste reduction progress reports complying with Division 1 Section
“Construction Waste Management.”

	 	a.	 	Comply with Division 1 Section “Construction Waste Management.”
	 
	 	b.	 	Construction waste management plan.
	 
	 	c.	 	Complete LEED construction waste calculations.
	 
	 	d.	 	Itemized waste hauling certificates/receipts for all waste removed from
the Project site and documentation of recycling recovery rate for off-site sorting
facilities (if waste is commingled).

	 	5.	 	Credit EQc1.5 — Construction IAQ Management Plan

	 	a.	 	Comply with Division 1 Section “Construction IAQ Management.”
	 
	 	b.	 	Photographs documenting construction IAQ management measures
implemented during construction.

3

 

					
	SECTION 01352

LEED® REQUIREMENTS
	 
	 	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

PART 2  — PRODUCTS

	2.01	 	ENERGY STAR

	 	A.	 	Provide dollar amount per purchasing workbook of electronic powered equipment (by cost)
that are Energy Star Certified for those products where a certification is available.

	2.02	 	Recycled Content (post-consumer + 1/2 post-industrial)

	 	A.	 	Provide dollar amount per purchasing workbook of building materials with recycled
content such that post-consumer recycled content plus one-half of pre-consumer recycled
content:

	 	1.	 	The cost of post-consumer recycled content of an item shall be determined by
dividing the weight of post-consumer recycled content in the item by the total weight
of the item and multiplying by the cost of the item.
	 
	 	2.	 	The cost of post consumer recycled content plus one-half of pre-consumer
recycled content of an item shall be determined by dividing the weight of post-consumer
recycled content plus one-half of pre-consumer recycled content in the item by the
total weight of the item and multiplying by the cost of the item.
	 
	 	3.	 	Do not include mechanical and electrical components in the calculation.
	 
	 	4.	 	Recycled content of materials shall be defined according to the Federal Trade
Commission’s “Guide for the Use of Environmental Marketing Claims,” 16 CFR 260.7 (e).

	2.03	 	Manufactured Regionally/Local Products

	 	A.	 	Provide dollar amount per construction workbook of building materials (by cost) that
are regionally manufactured, extracted, harvested, or recovered materials.

	2.04	 	Certified Wood

	 	A.	 	Provide dollar amount per construction workbook of wood-based materials. Wood products
shall be those that are produced from wood obtained from forests certified by an
FSC-accredited certification body to comply with FSC 1.2, “Principles and Criteria.”
	 
	 	B.	 	Wood-based materials include but are not limited to the following:

	 	1.	 	Rough carpentry.
	 
	 	2.	 	Miscellaneous carpentry.
	 
	 	3.	 	Heavy timber construction.
	 
	 	4.	 	Wood decking.
	 
	 	5.	 	Metal-plate-connected wood trusses.
	 
	 	6.	 	Structural glued-laminated timber.
	 
	 	7.	 	Finish carpentry.
	 
	 	8.	 	Architectural woodwork.
	 
	 	9.	 	Wood paneling.
	 
	 	10.	 	Wood veneer wall covering.
	 
	 	11.	 	Wood flooring.
	 
	 	12.	 	Wood lockers.
	 
	 	13.	 	Wood cabinets.
	 
	 	14.	 	Non-rented temporary construction, including bracing, concrete formwork,
pedestrian barriers, and temporary protection.

	2.05	 	Adhesives and Sealants

	 	A.	 	Provide dollar amount per construction workbook of adhesives and sealants used on the
interior of the building. Adhesives and sealants shall comply with the VOC limits of the
South Coast Rule #1168 by the South Coast Air Quality Management District, dated July, 2007
(www.aqmd.gov/rules/reg/reg11/r1168.pdf).

4

 

			
	SECTION 01352

LEED® REQUIREMENTS
	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	B.	 	VOC limits in grams per liter for adhesives and sealants used on interior of building
are as follows:

	 	 	 
	PRODUCT TYPE	 	VOC Limit G/L
	Sealants
	 	 
	Architectural
	 	250
	Porous Architectural Sealant Primer
	 	775
	Non-porous Architectural Sealant Primer
	 	250
	Architectural Adhesives Applications
	 	 
	Indoor Carpet Adhesives
	 	50
	Carpet Pad Adhesives
	 	50
	Outdoor Carpet Adhesives
	 	150
	Wood Flooring Adhesives
	 	100
	Rubber Floor Adhesives
	 	60
	Subfloor Adhesives
	 	50
	Ceramic Tile installation
	 	65
	VCT and Asphalt Tile Adhesives
	 	50
	Dry Wall and Panel Adhesives
	 	50
	Cove base installation
	 	50
	Multipurpose Construction Adhesive
	 	70
	Structural Glazing Adhesives
	 	100
	Substrates
	 	 
	Metal to metal
	 	30
	Plastic foams
	 	50
	Porous material except wood
	 	50
	Wood
	 	30
	Fiberglass
	 	80
	Welding & Installation
	 	 
	PVC welding
	 	510
	CPVC welding
	 	490
	ABS welding
	 	325
	Plastic cement welding
	 	250
	Adhesive primer for plastic
	 	550
	Contact Adhesive
	 	80
	Special Purpose Contact Adhesives
	 	250
	Structural Wood Member Adhesives
	 	140
	Sheet Applied Rubber Lining Operations
	 	850
	Top and Trim Adhesive
	 	250
	Sealant Primer
	 	 
	Architectural (non-porous)
	 	250
	Architectural (porous)
	 	775
	Other
	 	750

	 	C.	 	Limits on VOCs in grams per liter for carpet adhesives shall comply with the VOC limits
shown below

	 	 	 
	Aerosol Adhesives	 	 
	General purpose mist spray

	 	65% VOCs by weight
	General purpose web spray

	 	55% VOCs by weight
	Special purpose aerosol adhesives (all types)
Waterproofing concrete/masonry sealers

	 	70% VOCs by weight

	2.06	 	Paints and Coatings

	 	A.	 	Provide dollar amounts per construction workbook of paints applied on the interior of
the building. Paints shall comply with Green Seal Product Specific Environmental
Requirements (www.greenseal.org/standard/paints.htm). The Green Seal standard is
intended for paints and anti-corrosive paints. Both interior and exterior paints are
addressed by the standard, but only

5

 

			
	SECTION 01352

LEED® REQUIREMENTS
	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	 	 	limits for interior paints apply to a LEED project. Limits on VOCs in grams per liter for
paints and anti-corrosive paints are as follows:
	 
	 	B.	 	Architectural paints coating and primers applied to interior walls as well as
Anti-corrosive paints applied to interior ferrous metal shall not exceed the VOC limits as
put forth Green Seal Standard GS-11.

	 	 	 
	 	 	VOC Limit (g/L)
	Interior Coatings
	 	 
	Non-flat
	 	150
	Flat
	 	50
	Exterior Coatings
	 	 
	Non-flat
	 	200
	Flat
	 	100
	Anti-Corrosive
	 	 
	Gloss
	 	250
	Semi-Gloss
	 	250
	Flat
	 	250

	 	C.	 	Clear wood finishes, floor coatings, stain, sealers and shellacs applied to interior
elements shall comply with the VOC limits set forth in the South coast Air Quality
Management District (SCAQMD) rule 1113, Architectural Coatings, dated July, 2007.

	 	 	 
	 	 	VOC Limit (g/L)
	Clear Wood Finish
	 	 
	Varnish
	 	275
	Lacquer
	 	275
	Floor Coatings
	 	50
	Sealers
	 	 
	Waterproof sealers
	 	100
	Sanding sealers
	 	275
	All other sealers
	 	200
	Stains
	 	 
	Interior Stains
	 	250

	2.07	 	Carpet

	 	A.	 	Provide dollar amount per construction workbook of carpets installed within the
building. Carpets shall comply with the following limits as established by the Carpet and
Rug Institute Green Label Plus Testing Program:

	 	 	 	 	 
	 	 	Emission factor limit (mg/m2/hr)	 
	Carpets
	 	 	 	 
	Total VOCs
	 	 	0.5	 
	4—Phenylcyclohexane
	 	 	0.05	 
	Formaldehyde
	 	 	0.05	 
	Styrene
	 	 	0.4	 
	Cushion
	 	 	 	 
	Total VOCs
	 	 	1	 
	4—Phenylcyclohexane
	 	 	0.3	 
	Formaldehyde
	 	 	0.05	 
	Styrene
	 	 	0.05	 
	Adhesives
	 	 	 	 
	Total VOCs
	 	 	10	 

6

 

			
	SECTION 01352

LEED® REQUIREMENTS
	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

	 	 	 

	Formaldehyde
	 	0.05
	2 – Ethyl - 1 — Hexanol
	 	3
	 
	 	 

	2.08	 	Composite Wood

	 	A.	 	Provide dollar amount per construction workbook of composite wood and agrifiber
products installed inside the exterior moisture barrier. Composite wood products shall not
contain added urea-formaldehyde resin.

PART 3 — LEED TOOLS

This section includes general requirements and procedures for compliance with certain U.S.
Green Building Council (USGBC) LEED® prerequisites and credits needed for the Project to
obtain LEED certification.

7

 

			
	 	 	 
	SECTION 01352

LEED® REQUIREMENTS
	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

3.02 Sample Purchasing Workbook

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Regional Products	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Project/	 	Recycled Content	 	% harvested and	 	% Salvaged Material	 	 	 	 	 	 	 	 	 	Composite Panels	 
	 	 	 	 	 	 	 	 	 	 	 	 	Location of	 	% Post-	 	% Post-	 	manufactured	 	From off-	 	 	 	 	 	% Rapidly	 	 	 	 	 	Urea-Formaldehyde
	Material	 	Description	 	Cost	 	Date	 	Installation	 	Consumer	 	Industrial	 	w/in 500 miles	 	site	 	From on-site	 	Renewable	 	% FSC	 	Free Resin? (Y o N)
	DIVISION 2 — SITE CONSTRUCTION & LANDSCAPING
	 	 
	 
	 	 
	DIVISION 3 — CONCRETE
	 	 
	 
	 	 
	DIVISION 4 — MASONRY
	 	 
	 
	 	 
	DIVISION 5 — METALS
	 	 
	 
	 	 
	DIVISION 6 — WOOD & PLASTIC
	 	 
	 
	 	 
	DIVISION 7 — THERMAL & MOISTURE PROTECTION
	 	 
	 
	 	 
	DIVISION 8 — DOORS AND WINDOWS
	 	 
	 
	 	 
	DIVISION 9 — FINISHES (See separate Paints Tab)
	 	 
	 
	 	 
	DIVISION 10 — SPECIALTIES
	 	 

8

 

			
	 	 	 
	SECTION 01352

LEED® REQUIREMENTS
	 	2220 & 2240 DOUGLAS BLVD.

ROSEVILLE, CA

3.03 Sample Waste Workbook

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Diversion	 	Disposal	 	Percentage of
	Waste Classification	 	Material Description	 	Method	 	Hauler	 	Units	 	Jan	 	Feb	 	Mar	 	Subtotals	 	Waste Diverted
	Durable Goods — Electronics
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Computers

	 	Regular Trash
	 	landfill
	 	ABC
	 	 	22	 	 	 	22	 	 	 	3	 	 	 	 	 	 	 	25	 	 	 	 	 
	Lamps

	 	13 Good Condition Desktop
Lamps
	 	donated
	 	XYZ
	 	 	13	 	 	 	44	 	 	 	 	 	 	 	2	 	 	 	46	 	 	 	0.308724832	 
	Monitors

	 	22 Desk-top Monitors
	 	recycled
	 	 	123	 	 	 	22	 	 	 	66	 	 	 	12	 	 	 	 	 	 	 	78	 	 	 	0.523489933	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 
	Subtotals

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	132	 	 	 	15	 	 	 	2	 	 	 	149	 	 	 	0.832214765	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Facility Alterations
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Drywall

	 	8 walls to rebuilding center
	 	donated
	 	ABC
	 	 	22	 	 	 	55	 	 	 	 	 	 	 	 	 	 	 	55	 	 	 	 	 
	Concrete

	 	22 tons to recycling center
	 	recycled
	 	XYZ
	 	 	13	 	 	 	45	 	 	 	 	 	 	 	10	 	 	 	55	 	 	 	0.371621622	 
	Comingled waste

	 	Mixed waste to 90%
recycling hauler
	 	recycled
	 	 	789	 	 	 	12	 	 	 	 	 	 	 	22	 	 	 	 	 	 	 	22	 	 	 	0.148648649	 
	Carboard

	 	Regular Trash
	 	landfill
	 	 	123	 	 	 	88	 	 	 	 	 	 	 	11	 	 	 	5	 	 	 	16	 	 	 	0.108108108	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 
	Subtotals

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	100	 	 	 	33	 	 	 	15	 	 	 	148	 	 	 	0.628378378	 

PART 4 — EXECUTION

NOT USED

END OF SECTION

9

 

EXHIBIT A-6

CONSTRUCTION INDOOR AIR QUALITY REQUIREMENTS

PART 4 — GENERAL

	1.01	 	RELATED DOCUMENTS
	 
	A.	 	Drawings and general provisions of the Contract, including General and Supplementary
Conditions and other Division 1 Specification Sections, apply to this Section.
	 
	1.02	 	SUMMARY
	 
	A.	 	This Section describes construction indoor air quality (IAQ) goals and includes
administrative and procedural requirements for the development and execution of a
construction air quality management plan.
	 
	1.03	 	IAQ MANAGEMENT SUMMARY
	 
	A.	 	The Owner has established that the contractor shall prevent indoor air quality problems
resulting from the construction process, to sustain long term installer and occupant health
and comfort.
	 
	B.	 	Protect the ventilation system components during construction and clean contaminated
components after construction is complete.
	 
	C.	 	Control sources of potential IAQ pollutants by controlling selection of materials and
processes used in project construction.
	 
	1.04	 	SUBMITTALS
	 
	A.	 	IAQ Management Plan.
	 
	B.	 	Labeled photographs documenting and identifying construction IAQ management measures
implemented during construction such as duct protection measures and measures to protect
on-site stored or installed absorptive materials from moisture.
	 
	C.	 	Cut sheets of filtration media used during construction with MERV values highlighted.
	 
	1.05	 	CONSTRUCTION AIR QUALITY MANAGEMENT PLAN
	 
	A.	 	Develop a Draft Indoor Air Quality (IAQ) Management Plan for the construction and
pre-occupancy phases of the building as follows:

	 	1.	 	During construction meet or exceed the minimum requirements of the Sheet Metal
and Air Conditioning National Contractors Association (SMACNA) IAQ Guidelines for
Occupied Buildings under Construction 1995, Chapter 3,
	 
	 	2.	 	Protect stored on-site or installed absorptive materials from moisture damage.

	B.	 	The SMACNA IAQ Guidelines for Occupied Buildings under Construction provides an
overview of air pollution associated with construction, control measures, construction
process management, quality control, communicating with occupants, and case studies. These
guidelines can be accessed at www.smacna.org. Chapter 3 of the SMACNA Guidelines
recommends Control Measures in five areas: HVAC protection, source control, pathway
interruption, housekeeping, and scheduling. Review the applicability of each Control
Measure and include those that apply in the Draft IAQ Management Plan.

	 	1.	 	HVAC Protection: Shut down the return side of the HVAC system whenever
possible during heavy construction. If the system must remain operational during
construction include the following strategies that apply:

	 	a.	 	Fit all return air grilles with temporary filters with a
Minimum Efficiency Reporting Value (MERV) of 8.
	 
	 	b.	 	Isolate the return side of the HVAC system from the surrounding
environment as much as possible (e.g., place all tiles for the ceiling plenum,
repair all ducts and air handler leaks).
	 
	 	c.	 	Damper off the return system in the heaviest work areas and seal the
return system openings with plastic.

1

 

	 	d.	 	Upgrade the filter efficiency where major loading is expected to affect
operating HVAC system.
	 
	 	e.	 	Clean permanent return air ductwork per National Air Duct Cleaning
Association standards upon completion of all construction and finish installation
work.
	 
	 	f.	 	Replace all filtration media prior to occupancy.

	 	3.	 	Source Control: Propose the substitution of non-toxic formulations of
materials that are generally the responsibility of the contractor such as caulks,
sealants, and cleaning products.
	 
	 	4.	 	Pathway Interruption: Prevent contamination of clean spaces. Include the following
strategies that apply:

	 	a.	 	Provide temporary barriers between work areas or between the inside and
outside of the building to prevent unwanted airflow from dirty to clean areas.

	 	5.	 	Housekeeping: Reduce construction contamination in the building prior to
occupancy through HVAC and regular space cleaning activities.

	 	a.	 	Store building materials in a weather tight, clean area prior to
unpacking for installation.
	 
	 	b.	 	Check for possible damage to building materials from high humidity.
	 
	 	c.	 	Clean all coils, air filters, and fans before testing and balancing
procedures are performed.

	 	6.	 	Scheduling: Specify construction sequencing to reduce absorption of VOC’s by
materials that act as sinks or contaminant sources. Complete application of wet and
odor-emitting materials such as paints, sealants, and coatings before installing sink
materials such as ceiling tiles, carpets, insulation, gypsum products, and
fabric-covered furnishings are installed.

	 	a.	 	Protect stored on-site or installed absorptive materials from exposure
to moisture through precipitation, plumbing leaks, or condensation from the HVAC
system to prevent microbial contamination.

	 	C.	 	Draft IAQ Management Plan Review Meeting: Once the Owner and Architect have reviewed
the Draft IAQ Management Plan and prior to construction at the site, schedule and conduct a
meeting to review the Draft IAQ Management Plan and discuss procedures, schedules and
specific requirements for IAQ during the construction and pre-construction phases of the
building. Discuss coordination and interface between the Contractor and other construction
activities. Identify and resolve problems with compliance to the requirements. Record the
minutes of the meeting, identify all conclusions reached and matters requiring further
resolution.

	 	1.	 	Attendees: The Contractor and related Contractor personnel associated with the
work of this section, including personnel to be in charge of the IAQ management
program, Architect, Owner and such additional personnel as the Architect or Owner deem
appropriate.

	 	D.	 	Final IAQ Management Plan: Make any revisions to the Draft IAQ Management Plan agreed
upon during the meeting identified in item (C) above and incorporate resolutions agreed to
be made subsequent to the meeting. Submit the revised plan to the Owner and Architect for
approval within 10 calendar days of the meeting.

PART 2 — PRODUCTS (NOT USED)

PART 3 — EXECUTION

3.01 IMPLEMENTATION OF IAQ MANAGEMENT PLAN

	 	A.	 	Manager: The Contractor shall designate an on-site party (or parties) responsible for
instructing workers and overseeing and the IAQ Management Plan for the Project.
	 
	 	B.	 	Progress Meetings: Construction related IAQ procedures shall be included in the
pre-construction and construction progress meeting agendas.
	 
	 	C.	 	Distribution: The Contractor shall distribute copies of the IAQ Management Plan to the
Job Site Foreman, each Subcontractor, the Owner, and the Architect.
	 
	 	D.	 	Instruction: The Contractor shall provide on-site instruction of the IAQ procedures
and ensure that all participants in the construction process understand the importance of
the goals of the IAQ Management Plan.

2

 

EXHIBIT B

RULES AND REGULATIONS

     1. No sign, placard, picture, advertisement, name or notice shall be installed or displayed on
any part of the outside or inside of the Building without the prior written consent of Landlord.
Landlord shall have the right to remove, at Tenant’s expense and without notice, any sign installed
or displayed in violation of this rule. All approved signs or lettering on doors and walls shall
be printed, painted, affixed or inscribed at the expense of Tenant by a person chosen by Landlord.

     2. If Landlord objects in writing to any curtains, blinds, shades, screens or hanging plants
or other similar objects attached to or used in connection with any window or door of the Premises,
Tenant shall immediately discontinue such use. No awning shall be permitted on any part of the
Premises. Tenant shall not place anything against or near glass partitions or doors or windows
which may appear unsightly from outside the Premises.

     3. Tenant shall not obstruct any sidewalks, halls, passages, exits, entrances, elevators,
escalators or stairways of the Building. The halls, passages, exits, entrances, shopping malls,
elevators, escalators and stairways are not for the general public, and landlord shall in all cases
retain the right to control and prevent access thereto of all persons whose presence in the
judgment of Landlord would be prejudicial to the safety, character, reputation and interests of the
Building and its tenants; provided that nothing herein contained shall be construed to prevent such
access to persons with whom any tenant normally deals in the ordinary course of its business,
unless such persons are engaged in illegal activities. No tenant and no employee, agent,
contractor, licensee or invitee of any tenant shall go upon the roof of the Building.

     4. Landlord will provide a central directory for the Building, and ninety percent (90%) of
such directory shall be available for the tenants occupying the Building. The tenants’ space on
such directory shall be allocated based upon the ratio between the Rentable Area occupied by each
tenant and the total Rentable Area within the Building. The directory of the Building will be
provided exclusively for the display of the name and location of tenants only, and Landlord
reserves the right to exclude any other names therefrom.

     5. All cleaning and janitorial services for the Building and the Premises shall be provided
exclusively through Landlord, except with the written consent of Landlord, no person or persons
other than those approved by Landlord shall be employed by Tenant or permitted to enter the
Building for the purpose of cleaning the same. Tenant shall not cause any unnecessary labor by
carelessness or indifference to the good order and cleanliness of the Premises. Landlord shall not
in any way be responsible to any Tenant for any loss of property on the Premises, however
occurring, or for any damage to any Tenant’s property by the janitor or any other employee or any
other person.

     6. Landlord will furnish Tenant, free of charge, with two keys to each door lock in the
Premises. Landlord may make a reasonable charge for any additional keys. Tenant shall not make or
have made additional keys, and Tenant shall not alter any lock or install a new additional lock or
bolt on any door of its Premises. Tenant, upon the termination of its tenancy,

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shall deliver to Landlord the keys of all doors which have been furnished to Tenant, and in
the event of loss of any keys so furnished, shall pay Landlord therefor.

     7. If Tenant requires telegraphic, telephonic, burglar alarm, antenna, satellite dish or
similar services, it shall first obtain, and comply with, Landlord’s instructions in their
installation.

     8. Any freight elevator shall be available for use by all tenants in the Building, subject to
such reasonable scheduling as Landlord in its discretion shall deem appropriate. No equipment,
materials, furniture, packages, supplies, merchandise or other property will be received in the
Building or carried in the elevators except between such hours and in such elevators as may be
designated by Landlord.

     9. Tenant shall not place a load upon any floor of the Premises which exceeds the load per
square foot which such floor was designed to carry and which is allowed by law. Landlord shall
have the right to prescribe the weight, size and position of all equipment, materials, furniture or
other property brought into the Building. Heavy objects shall, if considered necessary by
Landlord, stand on such platforms as determined by Landlord to be necessary to properly distribute
the weight. Business machines and mechanical equipment belonging to Tenant, which cause noise or
vibration that may be transmitted to the structure of the Building or to any space therein to such
a degree as to be objectionable to Landlord or to any tenants in the Building, shall be placed and
maintained by Tenant, at Tenant’s expense, on vibration eliminators or other devices sufficient to
eliminate noise or vibration. The persons employed to move such equipment in or out of the
Building must be acceptable to Landlord. Landlord will not be responsible for loss of, or damage
to, any such equipment or other property from any cause, and all damage done to the Building by
maintaining or moving such equipment or other property shall be repaired at the expense of Tenant.

     10. Tenant shall not use or keep in the Premises any kerosene, gasoline or inflammable or
combustible fluid or material other than those limited quantities necessary for the operation or
maintenance of office equipment. Tenant shall not use or permit to be used in the Premises any
foul or noxious gas or substance, or permit or allow the Premises to be occupied or used in a
manner offensive or objectionable to Landlord or other occupants of the Building by reason of
noise, odors or vibrations, nor shall Tenant bring into or keep in or about the Premises any birds,
animals, or fish tanks.

     11. Tenant shall not use any method of heating or air-conditioning other than supplied by
Landlord.

     12. Tenant shall not waste electricity, water or air-conditioning and agrees to cooperate
fully with Landlord to assure the most effective operation of the Building’s heating and
air-conditioning and to comply with any governmental energy-saving rules, laws or regulations of
which Tenant has actual notice, and shall refrain from attempting to adjust controls other than
room thermostats installed for Tenant’s use. Tenant shall keep corridor doors closed, and shall
close window coverings at the end of each business day.

     13. Landlord reserves the right, exercisable without notice and without liability to Tenant,
to change the name and street address of the Building.

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     14. Landlord reserves the right to exclude from the Building between the hours of 6 p.m. and 7
a.m. the following day, or such other hours as may be established from time to time by Landlord,
and on Sundays and legal holidays, any person unless that person is known to the person or employee
in charge of the Building and has a pass or is properly identified. Tenant shall be responsible
for all persons for whom it requests passes and shall be liable to Landlord for all acts of such
persons. Landlord shall not be liable for damages for any error with regard to the admission to or
exclusion from the Building of any person. Landlord reserves the right to prevent access to the
Building in case of invasion, mob, riot, public excitement or other commotion by closing the doors
or by other appropriate action.

     15. Tenant shall close and lock the doors of its Premises and entirely shut off all water
faucets or other water apparatus, and electricity, gas or air outlets before Tenant and its
employees leave the Premises. Tenant shall be responsible for any damage or injuries sustained by
other tenants or occupants of the Building or by Landlord for noncompliance with this rule.

     16. Tenant shall not obtain for use on the Premises ice, drinking water, food, beverage, towel
or other similar services or accept barbering or bootblacking services upon the Premises, except at
such hours and under such regulations as may be fixed by Landlord.

     17. The toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for
any purpose other than that for which they were constructed and no foreign substance of any kind
whatsoever shall be thrown therein. The expense of any breakage, stoppage or damage resulting from
the violation of this rule shall be borne by the tenant who, or whose employee, agent, contractor,
licensee or invitee, shall have caused it.

     18. Tenant shall not sell, or permit the sale at retail, of newspapers, magazines,
periodicals, theater tickets or any other goods or merchandise to the general public in or on the
Premises. Tenant shall not make any room-to-room solicitation of business from other tenants in
the Building. Tenant shall not use the Premises for any business or activity other than that
specifically provided for in Tenant’s Lease.

     19. Tenant shall not install any radio or television antenna, loudspeaker or other device on
the roof or exterior walls of the Building. Tenant shall not interfere with radio or television
broadcasting or reception from or in the Building or elsewhere.

     20. Tenant shall not mark, drive nails, screw or drill into the partitions, woodwork or
plaster or in any way deface the Premises or any part thereof. Landlord reserves the right to
direct electricians as to where and how telephone and telegraph wires are to be introduced to the
Premises. Tenant shall not cut or bore holes for wires. Tenant shall not affix any floor covering
to the floor of the Premises in any manner except as approved by Landlord. Tenant shall repair any
damage resulting from noncompliance with this rule.

     21. Tenant shall not install, maintain or operate upon the Premises any vending machine
without written consent of Landlord.

     22. Canvassing, soliciting and distribution of handbills or any other written material, and
peddling in the Building are prohibited, and each tenant shall cooperate to prevent same.

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     23. Landlord reserves the right to exclude or expel from the Building any person who, in
Landlord’s judgment, is intoxicated or under the influence of liquor or drugs or who is in
violation of any of the Rules and Regulations of the Building.

     24. Tenant shall store all its trash and garbage within its Premises. Tenant shall not place
in any trash box or receptacle any material which cannot be disposed of in the ordinary and
customary manner of trash and garbage disposal. All garbage and refuse disposal shall be made in
accordance with directions issued from time to time by Landlord.

     25. The Premises shall not be used for the storage of merchandise held for sale to the general
public, or for lodging or for manufacturing of any kind, nor shall the Premises be used for any
improper, immoral or objectionable purpose. No cooking shall be done or permitted by any tenant on
the Premises, except that use by Tenant of Underwriters’ Laboratory-approved microwave ovens and
equipment for brewing coffee, tea, hot chocolate and similar beverages shall be permitted, provided
that such equipment and use is in accordance with all applicable federal, state, county and city
laws, codes, ordinances, rules and regulations.

     26. Tenant shall not use in any space or in the public halls of the Building any hand trucks
except those equipped with rubber tires and side guards or such other material-handling equipment
as Landlord may approve. Tenant shall not bring any other vehicles of any kind into the Building.

     27. Without the written consent of Landlord, Tenant shall not use the name of the Building in
connection with or in promoting or advertising the business of Tenant except as Tenant’s address.

     28. Tenant shall comply with all safety, fire protection and evacuation procedures and
regulations established by Landlord or any governmental agency.

     29. Tenant assumes any and all responsibility for protecting its Premises from theft, robbery
and pilferage, which includes keeping doors locked and other means of entry to the Premises closed.

     30. The requirements of Tenant will be attended to only upon appropriate application to the
office of the Building by an authorized individual. Employees of Landlord shall not perform any
work or do anything outside of their regular duties unless under special instructions from
Landlord, and no employee of Landlord will admit any person (Tenant or otherwise) to any office
without specific instructions from Landlord.

     31. Tenant shall not park its vehicles in any parking areas designated by Landlord as areas
for parking by visitors to the Building. Tenant shall not leave vehicles in the Building parking
areas overnight nor park any vehicles in the Building parking areas other than automobiles,
motorcycles, motor driven or non-motor driven bicycles or four-wheeled trucks.

     32. Tenant assumes any and all responsibility for the use of any floor mat (e.g. vinyl,
plastic, rubber, etc.), storage container, file cabinet or other item whose bottom surface covers
any area on the first floor of the Building and is impermeable to water moisture and/or retards
evaporation of water moisture from the floor beneath it. Tenant shall indemnify Landlord for

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any damage, destruction, repair or remediation arising from Tenant’s use of any such item, in
accordance with the indemnity provision set forth in Paragraph 20, above.

     33. Upon the termination of the Lease, Tenant shall remove all cabling and wiring which are
located in the Premises or which exclusively serve the Premises from the Building communications
closet. Removal of the cabling and wiring shall be conducted by a licensed reputable contractor at
Tenant’s sole expense.

     34. Landlord may waive any one or more of these Rules and Regulations for the benefit of
Tenant or any other tenant, but no such waiver by Landlord shall be construed as a waiver of such
Rules and Regulations in favor of Tenant or any other tenant, nor prevent Landlord from thereafter
enforcing any such Rules and Regulations against any or all of the tenants of the Building.

     35. These Rules and Regulations are in addition to, and shall not be construed to in any way
modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease
of premises in the Building.

     36. Tenant acknowledges that it is Landlord’s intention that the Building be operated in a
manner which is consistent with Landlord’s sustainability practices. Tenant is required to comply
with these practices within its Premises.

     37. Landlord reserves the right to make such other and reasonable Rules and Regulations as, in
its judgment, may from time to time be needed for safety and security, for care and cleanliness of
the Building and for the preservation of good order therein. Tenant agrees to abide by all such
Rules and Regulations hereinabove stated and any additional rules and regulations which are
adopted.

     38. Tenant shall be responsible for the observance of all of the foregoing rules by Tenant’s
employees, agents, contractors, licensees and invitees (including clients, customers, and guests).

	 	 	 	 	 	 	 

	 
	LANDLORD:	 	TENANT:
	 	 	 	 	 	 	 
	 
	LUM YIP KEE, LIMITED, a Hawaii
corporation, doing business as Twin Trees 
Land Company	 	SOLAR POWER, INC., a California
corporation

	 
	By: 	 /s/ Jeffrey M.C. Lum	 	By: 	 /s/ Jeff Winzeler
	 	 
	 	 	 
	 
	Its: Vice President	 	Its:  Chief Financial Officer

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EXHIBIT C

DESCRIPTION OF SATELLITE DISH EQUIPMENT

Exhibit to be inserted when and if Tenant desires to install Satellite Dish Equipment

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EXHIBIT D

Exclusions from Direct Expenses

     Notwithstanding anything to the contrary contained in this Lease, the following costs shall be
excluded from Direct Expenses:

     (1) costs, including permit, license and inspection costs or fees, leasing or real estate
brokerage fees or commissions, architectural and engineering fees, “takeover” and similar expenses
incurred in connection with the leasing of space in the Building (including rental or other
obligations to third parties of prospective tenants or occupants of the Building which Landlord
pays or assumes), and all costs and expenses incurred in connection with leasing, renovating,
improving, remodeling, decorating and/or redecorating tenant space in the Building or in installing
leasehold improvements for tenants or occupants or prospective tenants or occupants of the
Building, but not Common Areas;

     (2) accountants’ fees, attorneys’ fees and other professional fees and costs, except those
incurred in connection with services that benefit the majority of the tenants or occupants of the
Building, and expressly excluding such fees and costs incurred in connection with proposals,
negotiations or disputes with tenants or other occupants or prospective tenants or occupants of the
Building, the enforcement of any leases (including unlawful detainer proceedings or the collection
of rents), requests to assign or sublet, the defense of Landlord’s title to or interest in the
Project or any part thereof, and the sale, transfer, financing or refinancing of the Project;

     (3) costs which are paid or reimbursable by specific tenants, insurance companies or other
third parties, including without limitation, costs incurred in connection with the repair of
damages caused by other tenants or which are payable by insurance;

     (4) costs incurred in connection with services or other benefits which are provided to tenants
or occupants other than Tenant, but not to Tenant, whether or not Landlord is entitled to
reimbursement therefor;(5) depreciation or amortization on the Building or Building components,
systems or equipment, except for amortization permitted in Section 6;

     (6) reserves, including reserves for capital items, bad debts, or rental losses, or for future
Direct Expenses or real estate property taxes;

     (7) interest or other payments (including payments of principal, points, and or other costs,
fees or expenses) on account of any debt, including mortgages, deeds of trust or other security
interests encumbering the Building or Project or incurred in connection with the acquisition,
ownership or operation of the Building or Project, except as provided in the preceding paragraphs
of Section 6;

     (8) ground lease rental payments;

     (9) penalties, fines, late payment charges or interest incurred as a result of the negligent
late payment by Landlord of any real estate property taxes, Direct Expenses or other costs or
expenses related to the ownership or operation of the Building or Project;

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     (10) costs incurred as the result of the negligence or willful misconduct of Landlord or
Landlord’s employees or agents;

     (11) costs incurred in the event any portion of the Building is made untenantable by fire,
earthquake, or other casualty or by exercise of rights of eminent domain, or to perform repairs or
other work occasioned by loss or damage due to casualty or exercise of rights of eminent domain,
whether or not paid for by insurance or condemnation proceeds;

     (12) costs associated with the operation of the business of the partnership or other entity
which constitutes Landlord, as distinguished from costs of operation of the Building, including
accounting and legal costs, costs of defending lawsuits with any mortgagee, and costs of selling,
syndicating, financing, mortgaging or hypothecating any ownership interest in Landlord, or any of
Landlord’s interests in the Project;

     (13) except as provided in Section 6, administrative, advertising, marketing, and promotional
expenditures in connection with leasing of space within the Building and those associated with
acquiring and installing signs in or on the Building identifying the owner of the Building or any
tenant or occupant of the Building;

     (14) wages, salaries or other compensation paid to promotional directors, officers, directors,
and executives of Landlord;

     (15) costs incurred for political or charitable contributions;

     (16) travel or entertainment expenses;

     (17) amounts owed by Landlord to other tenants;

     (18) costs and expenses, including taxes and compensation paid to attendants or other persons,
in connection with the operation of commercial concessions by Landlord, its subsidiaries or
affiliates;

     (19) costs arising from the presence of any Hazardous Materials in or about the Project,
including, without limitation, the presence of asbestos and the presence of Hazardous Materials in
the soil or ground water, including, without limitation, costs of investigation, monitoring,
removal or remediation;

     (20) costs, including all attorneys’ fees and costs, arising in connection with potential or
actual claims, litigation or arbitration pertaining to Landlord and/or the Project;

     (21) costs of any disputes between Landlord and any employee or agent of Landlord or any
mortgagee or ground lessor of Landlord;

     (22) costs incurred in connection with the original construction of the Building or in
connection with any major change in the Building, such as adding or deleting floors;

     (23) costs of alterations or tenant improvements for Tenant’s Premises or the premises of
other tenants.

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EXHIBIT E

WORK LETTER AGREEMENT

Landlord and Tenant execute this Work Letter Agreement (“Agreement”) simultaneous with the
execution of the Office Lease (the “Lease”) covering those certain premises located at 2240
Douglas Boulevard, Roseville, California, Suite 200, as more particularly described in Exhibits A
and A-1 to the Lease (the “Premises”).

To induce Tenant to enter into the Lease (which is hereby incorporated by reference to the extent
that the provisions of this Agreement may apply thereto) and in consideration of the mutual
covenants hereinafter contained, Landlord and Tenant mutually agree as follows:

     1. DEFINITIONS. Unless otherwise defined in this Agreement, the capitalized terms
used herein shall have the meaning assigned to them in the Lease.

     2. REPRESENTATIVES. Landlord hereby appoints Ray Walter as Landlord’s representative
to act for Landlord in all matters covered by this Agreement. Tenant hereby appoints Robert Wood
as Tenant’s representative to act for Tenant in all matters covered by this Agreement. All
inquiries, requests, instructions, authorizations and other communications with respect to the
matters covered by this Agreement shall be related to Landlord’s representative or Tenant’s
representative, as the case may be. Tenant will not make any inquiries of or requests to, and will
not give any instructions or authorizations to, any other employee or agent of Landlord, including
Landlord’s architects, engineers, and contractors or any of their agents or employees, with regard
to matters covered by this Agreement. Either Landlord or Tenant may change its representative at
any time by written notice to the other.

     3. TENANT SPACE PLAN AND PRELIMINARY TENANT IMPROVEMENT COST ITEMIZATION. Landlord
and Tenant hereby approve the preliminary space layout and improvement plan for the Premises (the
“Tenant Space Plan”) attached to the Lease as Exhibit A-1. Exhibit E attached to the Lease
is Landlord’s estimate of the cost of constructing the improvements to the Premises desired by
Tenant (“Preliminary Tenant Improvement Cost Itemization”).

     4. TENANT WORKING DRAWINGS. Based upon the approved Tenant Space Plan, Landlord will,
through Landlord’s architect or space planner, cause working drawings for the improvements to the
Premises (“Tenant Working Drawings”) to be prepared and delivered to Tenant within a
reasonable period of time after execution of the Lease. The Tenant Working Drawings will include
all architectural, mechanical and electrical engineering plans required for the issuance of permits
and the completion of the Tenant Improvements including complete detailed plans and specifications
for Tenant’s partition layout, reflected ceiling, heating and air conditioning, electrical outlets
and switches, telephone outlets, plumbing, fire sprinklers and finish specifications. It is
further agreed that all plans and specifications referred to in this Paragraph 4 above are subject
to Landlord’s approval, which Landlord agrees shall not be unreasonably withheld. Landlord’s
preparation or approval of the Tenant Working Drawings, the Tenant Space Plan and any other plans
or specifications shall not constitute any representation as to the adequacy, efficiency,
performance or desirability of any space plan or improvements.

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Tenant shall furnish Landlord, within three (3) business days after Landlord’s request, all
information necessary to enable Landlord to complete the Tenant Working Drawings. Any interior
design services, such as selection of paint colors, wall coverings, fixtures, furnishings,
carpeting or design of millwork or other special items shall be provided by Tenant at its expense,
but shall be subject to the reasonable approval of Landlord. Tenant shall furnish Landlord, within
three (3) business days after Landlord’s request, all interior design information necessary to
enable Landlord to complete the Tenant Working Drawings.

     5. NO SUBSTITUTIONS OR CREDITS. Notwithstanding any other provision of this
Agreement, Tenant acknowledges that Landlord requires that the Premises and the Tenant Improvements
meet the specifications set forth on Exhibit A-3, A-4, A-5, and A-6 attached to the Lease and by
this reference made a part hereof. In order to preserve uniformity and the construction standards
of the Building, Tenant shall be entitled to make no substitutions or alterations to the
specifications set forth in Exhibit A-3 through A-6 to the Lease.

     6. COST OF CONSTRUCTION AND PLANS. In connection with the Tenant Improvements to be
constructed by Landlord, Landlord shall contribute the Tenant Improvement/Moving Allowance: Five
Dollars ($5.00) per square foot of Usable Area in the Premises toward the cost of construction and
installation of Tenant Improvements, the preparation of the Tenant Space Plan and Tenant Working
Drawings. The balance, if any, of the cost in completing the Tenant Improvements (the
“Above-Allowance Work”), including, but not limited to, the cost of overhead, supervision
and profit, shall be paid to Landlord in accordance with Paragraph 11 below. If the actual cost of
the Tenant Improvements is less than the amount of the Allowance, Tenant may use the funds to
offset moving costs.

     7. FINAL TENANT COST PROPOSAL. At the time Landlord delivers the Tenant Working
Drawings, Landlord will provide Tenant a final cost proposal for constructing the improvements to
the Premises in accordance with the Tenant Working Drawings (the “Final Tenant Cost
Proposal”). The Final Tenant Cost Proposal will be based on actual bids received by Landlord’s
contractor and shall set forth the cost to Tenant of constructing the Above- Allowance Work.

     8. APPROVAL OF TENANT WORKING DRAWINGS AND FINAL TENANT COST PROPOSAL. Tenant will
deliver to Landlord written approval of the Tenant Working Drawings and an executed Final Tenant
Cost Proposal within five (5) business days after Tenant receives such items, except that Tenant’s
approval of the Final Tenant Cost Proposal shall not be required if the Final Tenant Cost Proposal
is for an amount not in excess of the Allowance. Landlord shall use reasonable care in preparing
the Final Tenant Cost Proposal, provided, however, that the Final Tenant Cost Proposal shall not
limit Tenant’s obligation to pay the actual cost of the Above-Allowance Work if such cost is
attributable to: (i) any changes in the Tenant Working Drawings required by the governmental
authority issuing the building permits for the Tenant Improvements; or (ii) any changes,
modifications, or change orders requested by Tenant; or (iii) any delay by Tenant enumerated in
Paragraphs 12(a) through (e) below that increases the cost of construction.

     9. MODIFICATIONS TO TENANT WORKING DRAWINGS AND FINAL TENANT COST PROPOSAL. Tenant
may reject the Tenant Working Drawings if there is a

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variance in design from the Tenant Space Plan. In such event, Landlord will promptly revise
the Tenant Working Drawings. If Tenant timely rejects the Final Tenant Cost Proposal, Tenant will
have a period of five (5) days after such rejection during which to suggest cost-saving measures.
During such five (5)-day period, Landlord’s representative will be available for a cost reduction
consultation with Tenant. Landlord will act in a reasonably diligent manner in approving or
rejecting modifications to the Tenant Working Drawings requested by Tenant and in causing revised
Tenant Working Drawings (reflecting approved modifications) and a revised Final Tenant Cost
Proposal to be prepared. Tenant shall approve such revised Tenant Working Drawings and revised
Final Tenant Cost Proposal within five (5) days of receiving same. Each day after such five
(5)-day period until Tenant approves revised Tenant Working Drawings and executes and returns to
Landlord a revised Final Tenant Cost Proposal will constitute delay chargeable to Tenant.

     10. EFFECT OF APPROVAL. Tenant’s approval of Tenant Working Drawings (initial or
revised) will constitute Tenant’s acknowledgment that such drawings correctly depict the proper
layout and design for any and all improvements to the Premises desired by Tenant. Tenant’s
execution of a Final Tenant Cost Proposal will constitute authorization to Landlord to proceed with
and complete construction of Tenant Improvements in the Premises. All of the work called for by
the Tenant Working Drawings will be performed by one or more contractors engaged by Landlord.
Following approval of the Tenant Working Drawings and the Final Tenant Cost Proposal, Landlord will
submit the Tenant Working Drawings to the appropriate governmental authorities for necessary
approvals and building permits.

     11. PAYMENT FOR ABOVE-ALLOWANCE WORK. Upon Tenant’s execution of the Final Tenant
Cost Proposal, Tenant will pay to Landlord one hundred percent (100%) of the cost of the
Above-Allowance Work. Should Landlord waive any of the standard Building criteria set forth in
Exhibit A-3 through A-6 to the Lease, Tenant shall not be entitled to any credit therefor.
Landlord shall not be obligated to commence any construction (including any ordering or purchasing
of materials) of Tenant’s improvements until Tenant has approved the Tenant Working Drawings, has
executed and delivered to Landlord a Final Tenant Cost Proposal, and has paid Landlord one hundred
percent (100%) of the cost of the Above-Allowance Work. All amounts payable by Tenant under this
Agreement shall constitute additional rent under the Lease, and Landlord shall have the same
remedies against Tenant for default in the payment thereof as in the case of Tenant’s failure to
pay any other sum due under the Lease.

     12. COMPLETION AND RENTAL COMMENCEMENT DATE. Tenant’s obligation for the payment of
rent pursuant to the Lease will commence on the Commencement Date as set forth in the Lease;
however, such payment of rent may be delayed in the event the substantial completion of the Tenant
Improvements is delayed by Landlord’s actions. If, however, Tenant’s occupancy and use of the
Premises are delayed as a result of (a “Tenant Delay”):

          (a) Tenant’s failure to timely supply information necessary to complete the Tenant Working
Drawings (or revisions to such drawings) or to approve the Tenant Space Plan by May 27, 2011, the
Preliminary Tenant Improvement Cost Itemization by May 27, 2011, or the

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Final Tenant Working Drawings or Tenant Cost Proposal within the time frame established in
Paragraph 8 above; or

          (b) Tenant’s request for new work involving Above-Allowance Work; or

          (c) Modifications, revisions and changes to the Tenant Space Plan or Tenant Working Drawings
requested by or on behalf of Tenant; or

          (d) Changes in the work requested by or on behalf of Tenant or orders to halt or delay the
work given by or on behalf of Tenant; or

          (e) Any other delay of any kind or nature caused by Tenant or its contractors, architects,
space planners or other agents or employees, then the Commencement Date of the Lease and Tenant’s
obligation for the payment of rent shall commence on the date set forth in the Lease regardless of
any contrary provisions of the Lease.

     13. PUNCHLIST PROCEDURE. Following Landlord’s substantial completion of the Tenant
Improvements, but prior to the date that Tenant commences its fixturization, Landlord and Tenant
shall inspect the Premises and jointly prepare a punchlist of agreed upon items of construction
remaining to be completed by Landlord. For purposes of the Lease, this Work Letter Agreement and
any Early Possession Agreement, Landlord’s substantial completion of the Tenant Improvements shall
be deemed to occur when Landlord, in the good faith exercise of its discretion, notifies Tenant
that the Tenant Improvements to be done by Landlord is substantially complete. Landlord shall
complete the items (except any long-lead items) set forth in the punchlist within thirty (30) days
after the preparation of the punchlist.

     14. CHANGE ORDERS. Tenant may authorize changes in the work during construction only
by written instructions to Landlord’s representative on a form approved by Landlord. Also, such
changes will be subject to Landlord’s prior written approval. Before commencing any change,
Landlord will prepare and deliver to Tenant, for Tenant’s approval, the change order setting forth
the cost of such change, which will include associated architectural, engineering and construction
fees, if any, and six percent (6%) of the cost of such change for Landlord’s contractor’s overhead.
If Tenant fails to approve such change order within three (3) days, Tenant will be deemed to have
withdrawn the proposed change and Landlord will not proceed to perform that change. If Tenant
timely approves such change order, Tenant will within ten (10) days of Substantial Completion of
the Tenant Improvements pay to Landlord any amounts payable by Tenant in connection with the change
orders provided in this Paragraph.

     15. ACCESS TO PREMISES PRIOR TO DELIVERY. Landlord shall allow Tenant and its
contractors to enter the Premises at reasonable times prior to the Commencement Date to permit
Tenant to install its cabling for telephone, computers, work stations and security system, or other
work, if any; provided, however, that prior to such entry into the Premises, Tenant shall provide
evidence reasonably satisfactory to Landlord that the insurance required to be carried by Tenant
under Paragraph 22 (“Insurance”) of the Lease shall be in full force and effect at the time of such
entry. Tenant and its representatives shall not interfere with Landlord or Landlord’s contractor
in completing the work required of Landlord under this Agreement and Tenant and its representatives
shall be subject to all directives of Landlord and Landlord’s contractors in

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connection with such entry as well as the use of the Building’s common areas, restrooms,
elevators, truck loading areas and other facilities. Tenant expressly agrees that its contractors
shall not play radios, smoke cigarettes, leave trash in the Premises or park their motor vehicles
in any portion of the Building’s parking lot, except in the area designated by Landlord for such
vehicles. Prior to the commencement of any construction in the Premises, Tenant shall provide
Landlord’s representative a proposed work schedule for Tenant’s contractors and other
representatives, which schedule shall be subject to Landlord’s reasonable approval.

     Tenant agrees that Landlord shall not be liable in any way for any injury, loss or damage
which may occur to any of Tenant’s property placed upon or installed in the Premises prior to the
Commencement Date, the same being at Tenant’s sole risk, and Tenant shall be liable for all injury,
loss or damage to persons or property arising as a result of such entry of the Premises by Tenant
or its representatives.

     16. NO ROOF ACCESS. Tenant agrees that neither this Agreement nor the Lease grants
Tenant any right of access to the roof of the Building. Should Landlord, in connection with this
Agreement or the Lease, agree to mount equipment of any nature on the Building roof, such equipment
shall, at Landlord’s option, either be maintained and installed by Landlord, or maintained and
installed under Landlord’s direction, unless this Agreement expressly provides otherwise, all at
Tenant’s expense. Should this Agreement or the Lease permit Tenant to install any equipment on the
roof, any modifications to the roof or the roofs structure to accommodate that equipment shall be
made at Tenant’s sole cost and expense.

     17. EXCESSIVE LOADS. Tenant agrees that should the nature of its layout or any of its
equipment, fixtures or furnishings to be placed in the Premises place a burden in excess of the
Building’s designed load, Tenant agrees to pay Landlord the cost of any modifications to the
Building necessary to accommodate Tenant’s furniture, furnishings or layout.

     18. ALTERATIONS. Any alterations or improvements desired by Tenant after Landlord’s
delivery of the Premises shall be subject to the provisions of Paragraph 14 (“Alterations”)
of the Lease.

If the foregoing correctly sets forth our understanding, please sign this Agreement where indicated
below.

	 	 	 	 	 	 	 

	 
	LANDLORD:	 	TENANT:
	 
	LUM YIP KEE, LIMITED, a Hawaii	 	SOLAR POWER, INC., a California
	corporation, doing business as	 	corporation
	Twin Trees Land Company	 	 	 	 
	 
	By: 	 /s/ Jeffrey M.C. Lum	 	By: 	     /s/ Jeff Winzeler
	Its: Vice President	 	Its:     Chief Financial Officer

7

 

EXHIBIT F

TENANT IMPROVEMENT COST BREAKDOWN

Project Budget Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	Based on SSP	 	 	 	 
	Date:
	 	 	5/18/11	 	 	pricing plan:	 	 	5/18/11	 
	 
	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Project:	Solar Power Inc. 
2240 Douglas Blvd., Suite 	 	 	Load	 	USF	 	RSF
	Address:

	200
	 	 	 	14	%	 	 	9890	 	 	 	11275	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Vendor	 	Budget	 	 	$/usf	 	 	$/rsf	 
	General Construction
	 	Valley Commercial	 	$	44,447	 	 	$	4.49	 	 	$	3.94	 
	Space Planning
	 	SSP	 	$	7,000	 	 	$	0.71	 	 	$	0.62	 
	Construction Management
	 	D&C (pro-rated)	 	$	2,500	 	 	$	0.25	 	 	$	0.22	 
	Plan Check Fee ($44K valuation)
	 	 	 	$	800	 	 	$	0.08	 	 	$	0.07	 
	Construction Permit Fee
	 	 	 	$	1,200	 	 	$	0.12	 	 	$	0.11	 
	Project Contingency
	 	 	 	$	1,500	 	 	$	0.15	 	 	$	0.13	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	Total Base Project Budget
	 	 	 	$	57,447	 	 	$	5.81	 	 	$	5.10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Alternates
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1         Add 2 ton a/c to
 I.T. room
	 	 	 	$	8,886.00	 	 	$	0.90	 	 	$	0.79	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	Total Project Budget (including alternate)
	 	 	 	$	66,333.00	 	 	$	6.71	 	 	$	5.88	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

8exv4w1

Exhibit 4.1

EXECUTION VERSION

ELEVENTH SUPPLEMENTAL INDENTURE

     This ELEVENTH SUPPLEMENTAL INDENTURE is dated as of June 2, 2011 (this “Eleventh
Supplemental Indenture”), by and among PROLOGIS, a real estate investment trust organized under
the laws of the State of Maryland having its principal office at 4545 Airport Way, Denver, Colorado
80239 (the “Company”), NEW PUMPKIN INC., a corporation organized under the laws of the
State of Maryland having its principal office at 4545 Airport Way, Denver, Colorado 80239 (“New
Pumpkin”), and U.S. BANK NATIONAL ASSOCIATION (as successor in interest to State Street Bank
and Trust Company), having a corporate trust office at Corporate Trust Services, 100 Wall Street,
Suite 1600, New York, New York 10005, as trustee (in such capacity, the “Trustee”) under
the Base Indenture (as defined below).

RECITALS

     WHEREAS, the Company and the Trustee have heretofore entered into an Indenture, dated as of
March 1, 1995 (the “Original Indenture”), as amended by a First Supplemental Indenture,
dated as of February 9, 2005, a Second Supplemental Indenture, dated as of November 2, 2005, a
Third Supplemental Indenture, dated as of November 2, 2005, a Fourth Supplemental Indenture, dated
as of March 26, 2007 (the “Fourth Supplemental Indenture”), a Fifth Supplemental Indenture,
dated as of November 8, 2007 (the “Fifth Supplemental Indenture”), a Sixth Supplemental
Indenture, dated as of May 7, 2008 (the “Sixth Supplemental Indenture”), a Seventh
Supplemental Indenture, dated as of May 7, 2008, an Eighth Supplemental Indenture, dated as of
August 14, 2009, a Ninth Supplemental Indenture, dated as of October 1, 2009 and a Tenth
Supplemental Indenture, dated as of March 16, 2010 (the “Tenth Supplemental Indenture,”
and, together with the Fourth Supplemental Indenture, the Fifth Supplemental Indenture and the
Sixth Supplemental Indenture, the “Convertible Notes Supplemental Indentures”) (the
Original Indenture as so supplemented, the “Base Indenture”), pursuant to which the Company
issued its 2.25% Convertible Senior Notes due 2037 (the “2.25% Convertible Senior Notes”),
1.875% Convertible Senior Notes due 2037 (the “1.875% Convertible Senior Notes”), 2.625%
Convertible Senior Notes due 2038 (the “2.625% Convertible Senior Notes”) and 3.25%
Convertible Senior Notes due 2015 (the “3.25% Convertible Senior Notes,” and, together with
the 2.25% Convertible Senior Notes, the 1.875% Convertible Senior Notes and the 2.625% Convertible
Senior Notes, the “Convertible Notes”).

     WHEREAS, Section 8.06(a) of each of the Convertible Notes Supplemental Indentures provides
that if any consolidation, merger or combination of the Company with another Person occurs, as a
result of which holders of Common Shares shall be entitled to receive cash, securities or other
property or assets with respect to or in exchange for such Common Shares (any such event a
“Merger Event”), the Company and the successor entity, as applicable, shall execute with
the Trustee a supplemental indenture providing for the conversion and settlement of the Convertible
Notes as set forth in each of the Convertible Notes Supplemental Indentures;

     WHEREAS, Section 8.06(b) of each of the Convertible Notes Supplemental Indentures provides
that at the effective time of a Merger Event, the right to convert each $1,000 principal

1

 

amount of Convertible Notes will be changed to a right to convert such notes by reference to the
kind and amount of cash, securities or other property or assets that a holder of a number of Common
Shares equal to the specified conversion rate immediately prior to such transaction would have
owned or been entitled to receive (the “Reference Property”) such that from and after the
effective time of such transaction, a noteholder will be entitled to convert its Convertible Notes,
subject to the successor’s right to deliver cash, common shares or common stock of such successor
or a combination thereof, as applicable, in lieu of the common shares otherwise deliverable, into
the same type (and in the same proportion) of Reference Property, based on the Daily Settlement
Amounts of Reference Property in an amount equal to the applicable conversion rate, as described
under Section 8.02(b) of each Convertible Notes Supplemental Indenture;

     WHEREAS, on January 30, 2011, the Company entered into an Agreement and Plan of Merger by and
among the Company, New Pumpkin, AMB Property Corporation, a corporation organized under the laws of
the State of Maryland (“AMB Property Corporation”), AMB Property, L.P., a limited
partnership organized under the laws of the State of Delaware, Upper Pumpkin LLC, a limited
liability company organized under the laws of the State of Delaware (“Upper Pumpkin”) and
Pumpkin LLC, a limited liability company organized under the laws of the State of Delaware
(“Pumpkin LLC”), as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated
March 9, 2011 (as so amended, the “Merger Agreement”), pursuant to which, among other
things: (i) the Company was reorganized into an UPREIT structure by merging Pumpkin LLC with and
into the Company, with the Company continuing as the surviving entity and as a direct, wholly-owned
subsidiary of Upper Pumpkin and an indirect wholly-owned subsidiary of New Pumpkin (the
“ProLogis Merger”), whereby each outstanding Common Share was converted into one newly
issued share of New Pumpkin common stock (“New Pumpkin Common Stock”) and (ii) following
the ProLogis Merger, New Pumpkin will be merged with and into AMB Property Corporation with AMB
Property Corporation continuing as the surviving corporation under the name “Prologis, Inc.” (the
“Topco Merger”), whereby each outstanding share of New Pumpkin Common Stock will be
converted into the right to receive 0.4464 of a newly issued share of common stock, par value $0.01
per share of Prologis, Inc.;

     WHEREAS, the shares of New Pumpkin Common Stock into which the Common Shares have been
converted are Reference Property as provided in Section 8.06(b) of the Convertible Notes
Supplemental Indentures;

     WHEREAS, the Board of Directors of New Pumpkin and the Board of Trustees of the Company have
duly adopted resolutions authorizing New Pumpkin and the Company, respectively, to execute and
deliver this Eleventh Supplemental Indenture;

     WHEREAS, the ProLogis Merger has been consummated on the date hereof and this Eleventh
Supplemental Indenture is being executed and delivered concurrently therewith; and

     WHEREAS, all things necessary to make the Base Indenture, as hereby modified, a valid
agreement of New Pumpkin and the Company, in accordance with its terms, have been done.

2

 

NOW, THEREFORE, THIS ELEVENTH SUPPLEMENTAL INDENTURE WITNESSETH:

For and in consideration of the premises and of the covenants contained herein and in the Base
Indenture, New Pumpkin, the Company and the Trustee covenant and agree, for the equal and
proportionate benefit of all Holders of the Convertible Notes, as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Relation to Base Indenture. This Eleventh Supplemental Indenture constitutes an
integral part of the Base Indenture.

     Section 1.02 Definitions. For all purposes of this Eleventh Supplemental Indenture, except as
otherwise expressly provided for or unless the context otherwise requires:

          (a) Capitalized terms used but not defined herein shall have the respective meanings assigned
to them in the Base Indenture,

          (b) Terms defined both herein and in the Base Indenture shall have the meanings assigned to
them herein;

          (c) All references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Eleventh Supplemental Indenture.

          (d) All other terms used in this Eleventh Supplemental Indenture, which are defined in the
Trust Indenture Act or which are by reference therein defined in the Securities Act (except as
herein otherwise expressly provided or unless the context otherwise requires) shall have the
meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force
at the date of the execution of this Eleventh Supplemental Indenture. The words “herein,”
“hereof,” “hereunder,” and words of similar import refer to this Eleventh Supplemental Indenture as
a whole and not to any particular Article, Section or other subdivision.

ARTICLE II

EFFECT OF MERGER 

     Section 2.01 In accordance with Section 8.06 of the Convertible Notes Supplemental Indentures,
on and after the effective time of the ProLogis Merger, the right to convert each $1,000 principal
amount of Convertible Notes into Common Shares will be changed to a right to exchange such
Convertible Notes by reference to that number of shares of New Pumpkin Common Stock that such
holder of Convertible Notes would have owned or been entited to receive immediately after the
effective time of the ProLogis Merger if such holder had converted its Convertible Notes
immediately prior to the effective time of the ProLogis Merger, subject to any subsequent
adjustments as provided in Section 8.04 of the Convertible Notes Supplemental

3

 

Indentures. New Pumpkin shall provide the Company, free of preemptive rights and free from
all taxes, liens and charges with respect to the issuance thereof, a sufficient number of fully
paid and non-assessable shares of New Pumpkin Common Stock as may be necessary to deliver from time
to time to holders of Convertible Notes as such Convertible Notes are presented for exchange.

ARTICLE III

MISCELLANEOUS

     Section 3.01 Except as expressly modified or amended hereby, the Base Indenture continues in
full force and effect and is in all respects confirmed, ratified and preserved. Notwithstanding
the foregoing, in the case of conflict the provisions of this Eleventh Supplemental Indenture shall
control.

     Section 3.02 This Eleventh Supplemental Indenture and all its provisions shall be deemed a
part of the Base Indenture in the manner and to the extent herein and therein provided.

     Section 3.03 This Eleventh Supplemental Indenture shall be governed by, and construed in
accordance with, the laws of the State of New York.

     Section 3.04 This Eleventh Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

     Section 3.05 The Trustee shall not have any responsibility for the Recitals, which are made
only by the Company and New Pumpkin, or for the validity or sufficiency of this Eleventh
Supplemental Indenture.

[Remainder of page intentionally left blank.]

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Eleventh Supplemental Indenture to be
duly executed as of the date first written above.

	 	 	 	 	 
	 	PROLOGIS

 	 
	 	By:  	     /s/ Michael T. Blair
 	 
	 	 	Name:  	Michael T. Blair 	 
	 	 	Title:  	Managing Director & Assistant
Secretary 	 
	 

	 	 	 	 	 
	 	[SEAL]

Attest:

 	 
	 	By:  	     /s/ Edward S. Nekritz
 	 
	 	 	Name:  	Edward S. Nekritz 	 
	 	 	Title:  	General Counsel & Secretary 	 
	 

	 	 	 	 	 
	 	NEW PUMPKIN INC.

 	 
	 	By:  	     /s/ Edward S. Nekritz
 	 
	 	 	Name:  	Edward S. Nekritz 	 
	 	 	Title:  	General Counsel, Secretary and Vice
President 	 
	 

	 	 	 	 	 
	 	[SEAL]

Attest:

 	 
	 	By:  	     /s/ Michael T. Blair
 	 
	 	 	Name:  	Michael T. Blair 	 
	 	 	Title:  	Vice President and Assistant Secretary 	 
	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	     /s/ Beverly A. Freeney
 	 
	 	Name:  	Beverly A. Freeney 	 
	 	Title:  	Vice President 	 
	 

[Signature Page to the Eleventh Supplemental Indenture]

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