Document:

Amendment No.1 to lease agreement, dated 4/2/2001

 
EXHIBIT 10.23

 
AMENDMENT NO. 1 
TO 
LEASE AGREEMENT 
 
THIS
AMENDMENT NO. 1 TO LEASE AGREEMENT (the “Amendment”) is made as of the 2nd day of April, 2001 by and between BOSTON PROPERTIES LIMITED PARTNERSHIP (“Landlord”) and OTG SOFTWARE, INC. (“Tenant”). 
 
WITNESSETH 
 
WHEREAS, by Lease Agreement dated as of June 20, 2000 (the
“Lease”), Landlord leased to Tenant for an initial term of ten (10 years approximately 93,735 square feet of rentable area comprising a portion of the first (1st) floor and the entire third (3rd), fourth (4th) and fifth (5th) floors of the seven (7) story office building (the “Building”) known as The Preserve at Tower Oaks and located at 2600 Tower Oaks Boulevard,
Rockville, Maryland, as such space is more particularly described in the Lease; and 
 
WHEREAS, the Work Agreement attached as Exhibit B to the Lease currently contemplates that the Landlord will cause the Leasehold Work in the Premises to be performed; and 
 
WHEREAS, Tenant has elected to cause the Leasehold Work in the
Premises to be performed; and 
 
WHEREAS, Landlord
and Tenant hereby agree to amend the Lease (i) to modify the manner in which the Lease Commencement Date is to be determined, (ii) to accurately reflect that Tenant has elected to cause the Leasehold Work in the Premises to be performed and (iii) to
modify such other terms and provisions of the Lease as hereinafter set forth 
 
NOW, THEREFORE, in consideration of the mutual covenants and premises contained herein and other good and valuable consideration the receipt and sufficiency of which hereby is acknowledged, Landlord
and Tenant hereby agree to amend the Lease as follows: 
 
1. Defined Terms. Except as otherwise provided herein, all of the capitalized terms used herein shall have the same meanings as provided in the Lease, and the exhibits attached thereto. 
 
2. Term. (a) Section 2.2 of the Lease hereby is deleted
in its entirety and the following substituted therefor: 
 
“The Lease Commencement Date shall be the earlier of (i) the date on which Tenant commences normal business operations in the Premises and (ii) June 1, 2001. 
 
(b) Section 2.4 of the Lease hereby is deleted in its entirety and the following 
 

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substituted therefor: 
 
“Tenant has elected to engage its own contractor to perform the Leasehold Work. Subject to the
provisions of the Work Agreement attached as Exhibit B to the Lease, the Premises have been delivered to Tenant in Ready for Buildout condition, as defined in Paragraph 11(b) of the Work Agreement. In the event the installation of the Leasehold Work
in the Premises is not substantially completed on or before June 1, 2001 the term of this Lease shall commence on the Lease Commencement Date as determined in accordance with the provisions of Section 2.2 above and Paragraphs 10(c) and 11(f) of the
Work Agreement attached as Exhibit B to this Lease. Furthermore, Landlord shall not have any liability whatsoever to Tenant on account of any such delay.” 
 
3. Rent. Section 3.1 of the Lease hereby is amended by deleting the word “During” therefrom in the first (1st) sentence thereof and substituting the following phrase therefor: 
 
“Commencing on June 1, 2001 (the “Rent Commencement Date”) and continuing throughout the
remainder of the” 
 
4. Signs and
Furnishings. (a) Section 10.2(a) of the Lease hereby is amended by deleting the phrase “two (2) signs identifying Tenant and its logo (“Tenant’s Signs”) on the exterior walls at the top of the Building” from the second
(2nd) and third (3rd) lines thereof and substituting the following therefor: “(i) one (1) sign identifying Tenant and its logo which sign shall not exceed three hundred sixty (360) square feet on the penthouse roof
screen of the Building, (ii) one (1) sign identifying Tenant and its logo which sign shall not exceed one hundred twenty (120) square feet on the parapet wall of the Building and (iii) if Landlord elects to permit tenant names on the Building
monument sign, identification on the Building’s monument sign, displaying Tenant’s trade name and logo, provided, however, that Tenant’s sign on the Building monument sign shall be displayed on a prominent panel and shall be no
smaller than the largest sign available to any other Tenant in the Building (collectively, “Tenant’s Signs”).” 
 
(b) The first (1st) sentence of Section 10.2(a) of the Lease hereby is amended by deleting the word “location” therefrom in the fourth (4th) line thereof. 
 
(c) The first (1st) sentence of Section 10.2(a) of the Lease hereby is amended by deleting subclause
(D) therefrom in its entirety. 
 
(d) The third
(3rd) and fourth (4th) sentences of Section 10.2(a) of the Lease hereby are deleted in their entirety and the following substituted therefore: 
 
“The location of Tenant’s Signs described in sub-subsections (i) and (ii) above, are shown on
Exhibit I attached hereto and made a part hereof. Tenant’s right to signage on the Building shall be exclusive with respect to the penthouse roof screen only. Except as expressly limited in the 
 

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preceding sentence, Landlord shall have the right to provide (1) to one (1) other tenant in the Building
one (1) sign, showing such tenant’s name and logo, on the parapet level of the Building the size of which sign shall be limited to one hundred twenty (120) square feet and the location of which is shown on Exhibit I attached hereto and (2)
exterior signage to other tenants on other areas on or around the second (2nd) floor or below of the Building. In
the event such other tenant desires to change the location of its sign from that shown on Exhibit I, such modified location shall be subject to the prior approval of Tenant which approval shall not be unreasonably withheld, conditioned or
delayed.” 
 
5. Work Agreement. (a)
Paragraph 2, Landlord’s Work, of the Work Agreement attached as Exhibit B to the Lease hereby is amended by deleting all references to the Leasehold Work therefrom. Tenant has exercised its right pursuant to Paragraph 11 of the Work Agreement
to contract for the performance of the Leasehold Work 
 
(b) Paragraph 7, Cost of Leasehold Work, of the Work Agreement attached as Exhibit B to the Lease hereby is deleted in its entirety and the following substituted therefor: 
 
7. Cost of Leasehold Work. Tenant has exercised its right pursuant to Paragraph 11
below to contract for the performance of the Leasehold Work. The cost of the design and construction of the Leasehold Work (including all architectural and engineering costs) (collectively, the “Leasehold Cost”) up to the amount of
the Improvements Allowance and Additional Allowance described in Paragraph 8 below shall be borne by Landlord. Any portion of the Leasehold Cost that is in excess of the Improvements Allowance and Additional Allowance shall be borne by Tenant and is
referred to herein as “Tenant’s Expenses.” Tenant will be notified by Landlord and shall pay the Leasehold Contractor directly for Tenant’s Expenses on a pro rata basis as each requisition from the Leasehold Contractor is
submitted for payment by Landlord (so that the percentage of the Tenant’s Expenses paid by Tenant at the time of each requisition shall be equal to a fraction the numerator of which is the amount of the Improvements Allowance and, if
applicable, the Additional Allowance, and the denominator of which is the total cost to complete the Leasehold Work). Landlord shall not be obligated to pay the Leasehold Contractor for any of Tenant’s Expenses. All amounts payable by Tenant
pursuant to this Exhibit shall be considered additional rent and subject to the provisions of the Lease. 
 
(c) (i) All of Paragraph 9, Change Orders, of the Work Agreement, except for the first sentence thereof, hereby is deleted in its
entirety. 
 
(ii) Paragraph 9, Change Orders, of
the Work Agreement hereby is amended by adding the following provisions at the end thereof: 
 
Landlord agrees to approve or disapprove any change orders within three (3) business days after Landlord’s receipt of Tenant’s request therefor and all other documentation 
 

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required to be delivered to Landlord in connection therewith, however, if such change
order involves a Structural Alteration, as defined in the Lease, then Landlord’s comment period shall be extended to five (5) business days. If Landlord fails to respond to Tenant within the applicable time period and Tenant did in fact deliver
the change order to Landlord, then Landlord shall be deemed to have approved the change order as submitted. 
 
(d) (i) Paragraphs 10(a) and (b) of the Work Agreement attached as Exhibit B to the Lease shall be applicable only to the Base Building
Work and the Site Work. 
 
(ii) Paragraph 10(c) of
the Work Agreement attached as Exhibit B to the Lease hereby is deleted in its entirety and the following substituted therefor: 
 
(c) To the extent Tenant shall be actually delayed in completing the Leasehold Work as a result of (i) Landlord’s
failure to pay when due any portion of the Improvements Allowance and Additional Allowance, for which Landlord is responsible and Tenant has timely and properly submitted its request therefor pursuant to the provisions of this Exhibit B (but
only to the extent such failure actually delays the completion of the Leasehold Work) or (ii) Landlord’s failure to obtain the Base Building certificate of occupancy on or before the date on which the final inspection of the Leasehold Work is
scheduled to occur (i.e. the inspection that is required in order for Tenant to obtain a certificate of occupancy for the Premises), or (iii) Tenant is unable to obtain the certificate of occupancy for the Premises directly due to the performance
(or failure thereof) of any work by the Base Building Contractor, the Base Building Architect, the Base Building Engineers (i.e. the building inspector enumerates in writing Base Building work that needs to be performed in order for Tenant to obtain
the certificate of occupancy for the Premises) or (iv) Landlord’s failure to obtain the Base Building certificate of occupancy prevents Tenant from being able to schedule an inspection of the Leasehold Work, then except to the extent Tenant
commences business operations in the Premises, the Lease Commencement Date and the Rent Commencement Date shall be extended on a day-for-day basis for each day of actual delay (each of which is referred to herein as a “Landlord
Delay”) that occurs. Tenant shall notify Landlord promptly in writing if Tenant becomes aware of the existence of any such delay and if Tenant fails to so notify Landlord’s Authorized Representative as soon as reasonably practicable
after Tenant becomes aware of such delay, then any period prior to such notice shall not constitute Landlord Delay. Tenant shall use good faith reasonable efforts to counter the effect of any Landlord Delay; however, Tenant shall not be obligated to
expend any additional amounts in such efforts (e.g., by employing overtime labor) unless Landlord agrees in advance to bear any incremental cost associated with such efforts (whether or not such efforts are ultimately successful). Notwithstanding
the foregoing, a Landlord Delay shall not be deemed to have delayed substantial completion of the Leasehold Work unless there is a direct 
 

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causation
between the Landlord Delay and Tenant’s failure to achieve substantial completion of the Leasehold Work. By way of example, if (I) the Lease Commencement Date is delayed by twenty (20) days, (II) there had been no delays the Lease Commencement
Date would have occurred on or before May 15, 2001 and (III) fifteen (15) days of the delay are Tenant delay and five (5) days of the delay are Landlord Delay, then the Lease Commencement Date would be May 20, 2001. 
 
(e) The Work Agreement attached as Exhibit B to the Lease
hereby is amended by deleting Paragraph 11 therefrom in its entirety and substituting the following Paragraph 11 therefor: 
 
11. Tenant’s Right to Employ Leasehold Contractor. Tenant has elected to be the party who enters into the
contract with the Leasehold Contractor. The following terms and conditions shall apply to the performance of the Leasehold Work: 
 
(a) Selection of Leasehold Contractor. Tenant has employed and Landlord approves Kfoury Construction Group to serve
as the general contractor with respect to the Leasehold Work, and shall pay any fees due to the contractor for such services; provided that Tenant may draw upon the Improvements Allowance and the Additional Allowance to pay such fees. 
 
(b) Ready for Buildout. The Premises
have been delivered to Tenant in Ready for Buildout condition (i.e. all of the following shall have occurred): 
 
(i) the Premises are substantially free from debris and construction materials; 
 
(ii) substantially all perimeter walls are
taped and finished, and all interior core walls are ready for paint on the side facing the space to be occupied by Tenant; 
 
(iii) the HVAC, utility and plumbing systems for the Building are complete to a point that allows the Leasehold Work to
proceed without unreasonable impediment; 
 
(iv) at least one elevator or material lift is available to the Leasehold Contractor for moving construction materials, or Tenant (at Tenant’s request) is afforded the opportunity to install its own material lift at
Tenant’s cost; 
 
(v) the
permanent roof system in the Building shall be substantially complete, and all windows on the relevant floor(s) shall be substantially complete; and 
 

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(vi) all rooms located in the building core on the relevant floor(s),
including mechanical rooms, toilet rooms, electrical closets, janitor closets, freight elevator anterooms, lobbies and elevator cars, and stairways, are complete to a point that allows the Leasehold Work to proceed without unreasonable impediment.

 
Notwithstanding the provisions of Section 2.4 of
the Lease and the first (1st) sentence of this subclause (b) to the contrary, not more than ten (10) days after the
execution of this Amendment, Tenant shall notify Landlord in writing and in reasonable detail, in its reasonable good faith opinion (without regard to the status of the Leasehold Work) of any remaining punchlist items that remain to be completed in
connection with Landlord’s delivery of the Premises to Tenant in Ready for Build Out Condition. Landlord shall schedule a mutually agreeable time with Tenant and Tenant’s Project Manager, as defined in subclause (d) below, to walk through
the Premises so that Landlord either (A) can demonstrate to Tenant that items set forth in Tenant’s list have been completed or (B) can develop with Tenant a written schedule for such outstanding items to be completed. 
 
(c) Commencement of Leasehold Work.
Tenant acknowledges that it has commenced performance of the Leasehold Work in the Premises as of the date hereof. 
 
(d) Tenant’s Project Manager. Tenant has employed The Staubach Company (the “Project Manager”) to
provide project management services with respect to the Leasehold Work, and shall pay any fees due to the project manager for such services; provided that Tenant may draw upon the Improvements Allowance and the Additional Allowance to pay such fees.
Landlord shall not charge any supervisory, management or inspection fee or any other fee in connection with the Leasehold Work. 
 
(e) Performance of Leasehold Work. All work performed by the Leasehold Contractor and its subcontractors shall be
performed in a good and workmanlike and safe manner, in accordance with all applicable Legal Requirements and with the approved Leasehold Plans. Landlord shall have the right to cause Tenant to correct, replace or remove any improvements installed
in the Premises by the Leasehold Contractor or its subcontractors that do not comply with the preceding sentence. 
 
(f) Work Rules and Coordination. The Leasehold Contractor and all subcontractors employed by the Leasehold
Contractor shall comply with the work rules and regulations attached hereto as Schedule IV, and to any reasonable additional or modified work rules that may be reasonably adopted by Landlord for the Building, and shall coordinate on an
ongoing basis with Landlord’s project 
 

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manager and
construction manager concerning construction-related matters. Landlord shall direct the Base Building Contractor to cooperate with the Leasehold Contractor in scheduling access to and work in the Premises; provided, however, that the Base Building
Contractor shall not be required to perform, or refrain from performing, any act that would delay completing construction of the Base Building. Landlord shall direct the Base Building Contractor to provide Tenant with reasonable (as appropriate
under the circumstances) advance notice (which notice may be oral) of (i) any prohibition of or material interference with access to the Building for the delivery of materials, (ii) power and water outages, (iii) changes in parking for the Leasehold
Contractor and its subcontractors and (iv) restricted access to regular elevator use. The Leasehold Contractor shall conduct its activities in the Building in a manner that will not unreasonably delay or interfere with any work being performed in
the Building by any other contractor (including the Base Building Contractor). If Landlord reasonably determines (which may be based on information provided by the Base Building Contractor) that the work being performed by Leasehold Contractor or
any of its subcontractors, agents or employees needs to be suspended temporarily in order for Landlord or the Base Building Contractor to schedule or perform any review or inspection required in connection with any use, occupancy or other permit,
certificate or governmental approval of the Base Building, then Landlord shall notify Tenant thereof. If such party fails to stop such activity for the temporary period identified by Landlord, then Landlord shall have the right to order the
Leasehold Contractor or any of such other parties to immediately stop work until such time as Landlord or the Base Building Contractor reasonably determines that such activity will not affect the conduct or performance of such review or inspection.
Except to the extent that any such activity constitutes or arises out of Tenant Delay, the Lease Commencement Date and Rent Commencement Date of June 1, 2001 shall be extended on a day for day basis for each day that Tenant would otherwise have been
able to continue with the Leasehold Work but is unable to do so because Landlord or the Base Building Contractor has stopped Tenant’s performance of the Leasehold Work pursuant to this paragraph. 
 
(g) Landlord’s Approval of
Subcontractors. Landlord has approved the subcontractors engaged by the Leasehold Contractor for the performance of mechanical, fire and life-safety, electrical and plumbing work in the Premises. The Leasehold Contractor shall employ for the
performance of structural, work in the Premises and for any work affecting the exterior of the Building, only those subcontractors approved by Landlord in its reasonable discretion. 
 
(h) Leasehold Contractor’s Insurance. The Leasehold Contractor and its
subcontractors shall maintain insurance coverages as set forth on Schedule IV attached hereto. 
 

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(i) Disbursement of Improvements Allowance and Additional Allowance. The Improvements Allowance and Additional Allowance (or such portion thereof as has not previously been disbursed to pay Tenant’s architectural,
engineering and project management costs) shall be disbursed to Tenant or the Leasehold Contractor in pro rata payments, based on the percentage of the Leasehold Work that has been completed (but not in excess of the sums actually being disbursed to
the Leasehold Contractor, the Leasehold Architect, the Project Manager and such other parties that Tenant directs Landlord, in writing, to pay). If the cost to construct the Leasehold Work will exceed the unapplied (and unreserved) portion of the
Improvements Allowance and Additional Allowance (the “Unused Allowance”), then Landlord’s pro rata share of the requisition shall be determined by multiplying said requisition by a fraction, the numerator of which is the amount
of the Unused Allowance as of the date of the firs requisition, and the denominator of which is the total cost to complete the Leasehold Work as of such date. Disbursements will be made by Landlord following Tenant’s submission of a requisition
and any supporting documentation reasonably required by Landlord (which requisitions shall be submitted no more frequently than monthly). Provided such requisition and supporting documentation are received by Landlord no later than the twenty-fifth
(25th) day of a calendar month, Landlord shall pay the amount of such requisition (up to the amount of the Improvements Allowance) by the twentieth (20th) day of the immediately-succeeding calendar month. On a progressive basis, with each request
for a disbursement out of the Improvements Allowance, Tenant shall obtain and deliver to Landlord progressive lien waivers with respect to all work previously performed in the Premises and the Building from the Leasehold Contractor as well as any
other contractors employed directly by Tenant. 
 
(j) Final Lien Waivers. Upon completion of the Lease hold Work, simultaneously with disbursement of the final installment of the Improvements Allowance that is to be paid to the Leasehold Contractor, Tenant shall obtain and
deliver to Landlord final unconditional lien waivers with respect to all work performed in the Premises and the Building from the Leasehold Contractor as well as any other contractors employed directly by Tenant. Should any mechanic’s or
materialman’s lien be filed against the Premises or the Building with respect to the Leasehold Work, Tenant shall bond or pay off such lien within twenty (20) days after Tenant has notice thereof. 
 
(k) Responsibility for Work. Tenant
shall be solely responsible for the progress of construction of the Leasehold Work and for the quality or fitness thereof. Tenant shall be liable for any damage to the Building or the base-building systems caused by Tenant, the Leasehold Contractor,
or any of its subcontractors. 
 
(l) Permits. Tenant shall obtain all governmental permits and approvals relating to the performance of the Leasehold Work. Copies of all building 
 

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permits, non-residential use permits, and other governmental notices, permits or licenses
received with respect to the Leasehold Work shall be promptly furnished to Landlord. 
 
(m) As-Built Drawings. Upon completion of the Leasehold Work, Tenant shall cause the Leasehold Contractor to
furnish a set of “as-built” drawings to the Leasehold Architect, who shall prepare the record set of “as-built” drawings in Mylar-reproducible form and in CADD form and deliver the same to Landlord within thirty (30) days after
completion of the Leasehold Work. 
 
(f) The Work
Agreement attached as Exhibit B to the Lease hereby is amended by adding the following Paragraph 12 at the end thereof: 
 
12. Warranties. Landlord, at its cost and expense, shall repair or replace all materials, fixtures or equipment
incorporated by Landlord in the Premises that shall prove to be defective during a period of twelve (12) months after the date of the Base Building certificate of occupancy. Landlord shall repair or replace any damage to the Building or the
Leasehold Work caused by Landlord or the Base Building Contractor or any of its subcontractors in connection with the completion of the Base Building Work, including any Base Building punchlist work performed in the Premises. In performing any work
pursuant to this Paragraph 12, Landlord, the Base Building Contractor and its subcontractors shall use reasonable efforts to minimize disruption to Tenant. 
 
4. Corporate Action. Landlord and Tenant hereby represent and warrant to each other that all necessary corporate or other action
has been taken to enter this Lease and that the person signing this Lease on behalf of Landlord and Tenant, as applicable, has been duly authorized to do so. 
 
5. Incorporation of Lease Terms. Except to the extent expressly modified herein, all of the terms, conditions, covenants and
agreements set forth in the Lease (a) are incorporated herein by reference, (b) shall remain in full force and effect, (c) shall apply to this Amendment and (d) shall be applicable to and binding upon the parties hereto at all times during the term
of the Lease as if set forth herein. 
 
6.
Broker. Landlord recognizes Julien J. Studley as the broker procuring this Amendment. No commission shall be payable to said broker in connection with this Amendment. Landlord and Tenant each represents and warrants to the other that, except
as provided in the preceding sentence, neither of them has employed or dealt with any other broker, agent or finder in carrying on the negotiations relating to this Amendment. Tenant shall indemnify and hold Landlord harmless from and against any
claim or claims for brokerage or other commissions asserted by any broker, agent or finder engaged by Tenant or with whom Tenant has dealt in connection with this Amendment. Landlord shall indemnify and hold Tenant harmless from and against any
claim or claims for 
 

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brokerage or other commissions
asserted by any broker, agent or finder engaged by Landlord or with whom Landlord has dealt in connection with this Amendment. 
 
7. Mutual Negotiation. Landlord and Tenant each hereby covenant and agree that each and every provision of this Agreement has been
jointly and mutually negotiated and authorized by both Landlord and Tenant and in the event of any dispute arising out of any provision of this Lease, Landlord and Tenant do hereby waive any claim of authorship against the other party. 
 

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IN WITNESS
WHEREOF, Landlord and Tenant have executed this Amendment No. 1 to Lease Agreement as of the date and year first above written. 
 

	 	  	 LANDLORD
  
 BOSTON PROPERTIES LIMITED PARTNERSHIP, a
 Delaware limited partnership

	
	 	  	 	  	 	  	 By:
	  	 Boston Properties, Inc., its General Partner

	
	 WITNESS:
	  	 	  	 	  	 	  	 
	
	 /s/ [ILLEGIBLE]

	  	 	  	 By:
	  	 /s/ Raymond A. Ritchey        

	 	  	 	  	 	  	 Raymond A. Ritchey, Executive Vice President

	
	 	  	 TENANT:
  
 OTG SOFTWARE, INC., a Delaware corporation

	
	 ATTEST:
	  	 	  	 	  	 
	
	 By:
	  	 /s/    PATRICIA AKSTIN

	  	 By:
	  	 /s/    RONALD W. KAISER  

	 Title:
	  	 V P Operations

	  	 Title:
	  	 Chief Financial Officer

 
[CORPORATE SEAL] 
 

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[MAP] 
 
 
 

	 Boston Properties Tower Oaks
	 	 Sizes and location are
 approximate ref. paragraph 4
	 	 Penthouse Alternative 1

	

	
	 Genseir
	 	 	 	 ® 2001 GensierFirst Amendment to Lease

 
EXHIBIT 10.9

 
FIRST AMENDMENT
TO LEASE 
 
THIS FIRST AMENDMENT TO LEASE (this “Amendment”) is entered into as of November 1, 2002 (the “Effective Date”), by and
between MOFFETT OFFICE PARK INVESTORS LLC, a Delaware limited liability company (“Landlord”), and RAE SYSTEMS, INC., a
California corporation (“Tenant”). 
 
R  E  C  I  T  A  L  S 
 
A.  Aetna Life Insurance Company, a Connecticut corporation, Landlord’s predecessor-in-interest, and Tenant entered into
that certain Lease Agreement dated as of February         , 1999, as modified by a letter dated March 12, 1999 (as amended, the “ Lease”) which Lease covers the premises consisting of
approximately twenty five thousand eighty (25,080) rentable square feet located in the building commonly known as 1339 Moffett Park Drive, Sunnyvale, California (the “Building”), said premises being more particularly described in
the Lease (the “Premises”). Capitalized terms used but not defined herein shall have the meanings set forth in the Lease. 
 
B.  The Lease is scheduled to expire by its terms on May 31, 2004. Landlord and Tenant desire to extend the Term of the Lease
through October 31, 2009. 
 
C.  in
accordance with the terms and conditions contained herein. 
 
A  G  R  E  E  M  E  N  T 
 
NOW THEREFORE, in consideration of the agreements of Landlord and Tenant herein contained and other valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 
 
1.    EXTENSION TERM 
 
The Term of the Lease is hereby extended for a period of sixty-five (65) months, commencing on June 1, 2004
and ending on October 31, 2009 (the “Extension Term”). The word “Term,” as used in the Lease, shall mean the initial Term and the Extension Term. 
 

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2.
    MONTHLY BASE RENT 
 
Notwithstanding anything to the contrary contained in the Lease, effective as of the Effective Date, Tenant shall pay monthly Base Rent to Landlord in the amounts set forth below: 
 

	 Period

	    	 Monthly Base Rate

	  	 Monthly Base Rent

	 November 1, 2002 — October 31, 2003
	    	 $
	 1.05
	  	 $
	 26,334.00

	 November 1, 2003 — October 31, 2004
	    	 $
	 1.10
	  	 $
	 27,588.00

	 November 1, 2004 — October 31, 2005
	    	 $
	 1.15
	  	 $
	 28,842.00

	 November 1, 2005 — October 31, 2006
	    	 $
	 1.20
	  	 $
	 30,096.00

	 November 1, 2006 — October 31, 2007
	    	 $
	 1.30
	  	 $
	 32,604.00

	 November 1, 2007 — March 31, 2008
	    	 $
	 1.40
	  	 $
	 35,112.00

	 April 1, 2008 — October 31, 2008
	    	 $
	 1.70
	  	 $
	 42,636.00

	 November 1, 2008 — October 31, 2009
	    	 $
	 1.75
	  	 $
	 43,890.00

 
3.
    ADDITIONAL RENT 
 
Tenant shall continue to pay Additional Rent throughout the entire Term (including the Extension Term) in accordance with the terms of Paragraph 4 of the Lease. Nothing contained herein shall be deemed to limit or affect
Tenant’s obligations with regard to the payment of Additional Rent. 
 
4.     SECURITY DEPOSIT 
 
(a)  Tenant shall increase the Security Deposit held by Landlord under the Lease from the sum of Forty-Three Thousand Eight Hundred Dollars ($43,800.00) to the aggregate sum of Eighty-Seven
Thousand Six Hundred Ninety Dollars ($87,690.00). Such additional funds shall be paid to Landlord in six (6) equal installments of Seven Thousand Three Hundred Fifteen Dollars ($7,315.00) each, which installments shall be due and payable on the
first day of each calendar month from December 1, 2002 to May 1, 2003. Any failure of Tenant to pay any such installment when due shall constitute a Default under the Lease. 
 
(b)  Provided that no Default (nor an event or condition which, with the giving of notice or the
passing of time, or both, would constitute a Default) is then occurring hereunder on the part of Tenant, then Landlord shall apply Forty-Two Thousand Six Hundred Thirty-Six Dollars ($42,636.00) of the Security Deposit to the Base Rent due hereunder
for the calendar month of April, 2008. 
 

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(c)  Upon the payment in full by Tenant of all sums required under Paragraph 4(a), above Tenant’s obligation under the Lease to reimburse Landlord for the Excess Tenant Improvements Cost associated with the
Tenant Improvements installed in the Premises at the commencement of the Term shall be waived. 
 
5.     RENEWAL OPTION 
 
(a)  Tenant shall have one (1) option (the “Renewal Option”) to extend the Term for a period of three (3) years
beyond the Expiration Date (the “Renewal Term”). The Renewal Option is personal to RAE Systems, Inc. and may not be exercised by any sublessee or assignee, or by any other successor or assign of RAE Systems, Inc. The Renewal Option
shall be effective only if Tenant is not in Default under this Lease, nor has any event occurred which with the giving of notice or the passage of time, or both, would constitute a Default hereunder, either at the time of exercise of the Renewal
Option or the time of commencement of the Renewal Term. The Renewal Option must be exercised, if at all, by written notice (“Election Notice”) from Tenant to Landlord given not more than nine (9) months nor less than six (6) months
prior to the expiration of the Term. Any such notice given by Tenant to Landlord shall be irrevocable. If Tenant fails to exercise the Renewal Option in a timely manner as provided for above, the Renewal Option shall be void. The Renewal Term shall
be upon the same terms and conditions as the initial Term, except that (i) no further Renewal Option shall be available to Tenant at the expiration of the Renewal Term, and (ii) the Base Rent during the Renewal Term (the “Renewal
Rate”) shall be equal to the higher of (A) the “prevailing market rate” for space in similarly situated buildings in the vicinity of the Project comparable to the Building in location, condition, quality and type at the
commencement of the Renewal Term (the “Prevailing Rate”), or (B) the Base Rent due hereunder during the last month of the Term. The term “prevailing market rate” shall mean the base rental for such comparable space, taking
into account any additional rental and all other payments and escalations payable hereunder and by tenants under leases of such comparable space. The Prevailing Rate shall be determined in accordance with Paragraph 4 of the Lease. 
 
(b)  Within thirty (30) days after Landlord’s
receipt of the Election Notice or as soon thereafter as is reasonably practicable, Landlord shall notify Tenant in writing (the “Renewal Rate Notice”) of the Renewal Rate. Tenant shall have fifteen (15) days (the “Response
Period”) after receipt of the Renewal Rate Notice to advise Landlord whether or not Tenant agrees with Landlord’s determination of the Renewal Rate. If Tenant does not respond to Landlord in writing within the Response Period, then
Tenant shall be deemed to have accepted the Renewal Rate specified by Landlord in the Renewal Rate Notice. If Tenant agrees or is deemed to have agreed with Landlord’s determination of the Renewal Rate, then such determination shall be final
and binding on the parties. If Tenant notifies Landlord in writing during the Response Period that Tenant disagrees with Landlord’s determination of the Renewal Rate, then within fifteen (15) days after Landlord’s receipt of Tenant’s
written notice, Landlord and Tenant shall each retain a licensed commercial real estate broker with at least five (5) years’ experience negotiating commercial lease transactions in Sunnyvale, California. If only one broker is appointed by the
parties during such fifteen (15) day period, then such broker shall, within twenty (20) days after his or her appointment, determine the Prevailing Rate, and the Renewal Rate shall be the higher of (i) the Prevailing Rate so determined by such
broker, or (ii) the Base Rent due hereunder during the last month of the Term. If Landlord and Tenant each appoint a broker during such fifteen (15) day period as contemplated hereunder, then the brokers shall 
 

3 

 
meet at least two (2) times
during the thirty (30) day period commencing on the date on which the last of the brokers has been appointed (the “Broker Negotiation Period”) to attempt to mutually agree upon the Prevailing Rate. If the brokers agree upon the
Prevailing Rate on or before the expiration of the Broker Negotiation Period, then the higher of (A) the Prevailing Rate so determined by the brokers, or (B) the Base Rent due hereunder during the last month of the Term, shall be the “Renewal
Rate” for all purposes of this Lease. If the brokers cannot agree upon the Prevailing Rate at the expiration of the Broker Negotiation Period, but if the determinations of such brokers differ by less than five percent (5%) of the higher of the
two, the Prevailing Rate shall be the average of the two determinations. In the event such determinations differ by more than five percent (5%) of the higher of the two, then such appraisers shall within twenty (20) days designate a third broker,
who shall have the same qualifications required for the initial two brokers. If the two brokers fail to agree upon and appoint a third broker, then the third broker shall be appointed by J.A.M.S./ENDISPUTE. The third broker shall, within twenty (20)
days after his or her appointment, make a determination of the Prevailing Rate. The determinations of Prevailing Rate prepared by all three (3) brokers shall be compared and the Prevailing Rate shall be the average of the two closest determinations.
Such determination shall be final and binding upon the parties. The Renewal Rate shall be the higher of (1) the Prevailing Rate so determined in accordance with the foregoing sentence, and (2) the Base Rent due hereunder during the last month of the
Term. Landlord and Tenant shall each bear the expense of the broker selected by it and shall share equally the expense of the third broker, if any. Promptly following the determination of the Renewal Rate pursuant to this Paragraph 5, the parties
shall execute an amendment to this Lease memorializing such Renewal Rate. 
 
6.     AS-IS 
 
Tenant shall continue to occupy the Premises in its “AS-IS” condition. Except as provided in the Lease with respect to Landlord’s repair and maintenance obligations, Landlord shall have
no obligation to improve, remodel or otherwise alter the Premises at any time during the Term. 
 
7.     BROKERS 
 
Landlord and Tenant each represents and warrants to the other that neither it nor its officers or agents nor anyone acting on its behalf
has dealt with any real estate broker in the negotiating or making of this Amendment, except for Insignia/ESG, Inc. (“Landlord’s Broker”) and CRESA Partners (“Tenant’s Broker”) and each party agrees to
indemnify and hold harmless the other from any claim or claims, and costs and expenses, including attorneys’ fees, incurred by the indemnified party in conjunction with any such claim or claims of any other broker or brokers to a commission in
connection with this Amendment as a result of the actions of the indemnifying party. Landlord’s Broker and Tenant’s Broker shall be referred to herein collectively as the “Brokers.” Provided that this Amendment is fully
executed by the parties hereto, then Landlord shall pay a commission to the Brokers pursuant to and in accordance with the terms of a separate written agreement executed by Landlord. 
 
8.     MISCELLANEOUS 
 
(a)  As amended hereby, the Lease is hereby ratified and confirmed in all respects. In the event of
any inconsistencies between the terms of this Amendment and the Lease, the terms of 
 

4 

 
this Amendment shall prevail.
This Amendment shall bind and inure to the benefit of Landlord and Tenant and their respective legal representatives and successors and assigns. 
 
(b)  This Amendment may be executed in counterparts each of which counterparts when taken together shall constitute one and the
same agreement. 
 
(c)  Except as set
forth in this Amendment, all terms and conditions of the Lease shall remain in full force and effect. 
 
(d)  This Amendment and the Lease set forth the entire agreement and understanding between the parties as to the subject matter
hereof, and supersede all prior and contemporaneous agreements, whether oral, written or based on a course of dealing or performance, concerning such subject matter. 
 
IN WITNESS WHEREOF, Landlord and Tenant have executed this
Amendment to Lease as of the date first above written. 
 

	 LANDLORD:
	 	 	 	 MOFFETT OFFICE PARK
INVESTORS LLC,
 a Delaware limited liability company

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 By:
	 	 UBS Realty Investors LLC,
 a Massachusetts limited liability company,
 its Manager

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 By:
	 	

	 	 	 	 	 	 	 	 	 Name:
	 	

	 	 	 	 	 	 	 	 	 Title:
	 	

	 	 	 	 	 	 	 	 	 
	 	 	 TENANT:
	 	 	 	 RAE SYSTEMS,
INC.,
 a California corporation

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 By:
	 	

	 	 	 	 	 	 	 Name:
	 	

	 	 	 	 	 	 	 Title:
	 	

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 By:
	 	

	 	 	 	 	 	 	 Name:
	 	

	 	 	 	 	 	 	 Title:
	 	

 

5

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