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Exhibit 10.1  

 
  INDUSTRIAL COMPLEX LEASE
  (California)    
    

	Industrial Complex:	 	CARIBBEAN CORPORATE CENTER
	

Landlord:	
 	

MP CARIBBEAN, INC.
	

Tenant:	
 	

ACCURAY INCORPORATED
	

Reference Date:	
 	

JULY 9, 2003

 
 

INDEX TO LEASE    
    

	TITLE
	 	 
	 	PAGE

	ARTICLE 1.	 	DEFINITIONS AND CERTAIN BASIC PROVISIONS	 	2
	ARTICLE 2.	 	GRANTING CLAUSE	 	3
	ARTICLE 3.	 	DELIVERY OF DEMISED PREMISES	 	3
	ARTICLE 4.	 	RENT	 	4
	ARTICLE 5.	 	FINANCIAL REPORTS	 	5
	ARTICLE 6.	 	TENANT'S RESPONSIBILITY FOR TAXES, OTHER REAL ESTATE CHARGES AND INSURANCE EXPENSES	 	5
	ARTICLE 7.	 	COMMON AREA	 	6
	ARTICLE 8.	 	SECURITY DEPOSIT	 	8
	ARTICLE 9.	 	USE AND CARE OF DEMISED PREMISES	 	10
	ARTICLE 10.	 	MAINTENANCE AND REPAIR OF DEMISED PREMISES	 	11
	ARTICLE 11.	 	ALTERATIONS	 	12
	ARTICLE 12.	 	LANDLORD'S RIGHT OF ACCESS	 	13
	ARTICLE 13.	 	SIGNS; STORE FRONTS	 	14
	ARTICLE 14.	 	UTILITIES	 	14
	ARTICLE 15.	 	INSURANCE COVERAGES	 	15
	ARTICLE 16.	 	WAIVER OF LIABILITY; MUTUAL WAIVER OF SUBROGATION	 	16
	ARTICLE 17.	 	DAMAGES BY CASUALTY	 	17
	ARTICLE 18.	 	EMINENT DOMAIN	 	18
	ARTICLE 19.	 	ASSIGNMENT AND SUBLETTING	 	19
	ARTICLE 20.	 	SUBORDINATION; ATTORNMENT; ESTOPPELS	 	21
	ARTICLE 21.	 	TENANT'S INDEMNIFICATION	 	22
	ARTICLE 22.	 	DEFAULT BY TENANT AND REMEDIES	 	23
	ARTICLE 23.	 	INTENTIONALLY DELETED	 	27
	ARTICLE 24.	 	HOLDING OVER	 	27
	ARTICLE 25.	 	NOTICES	 	28
	ARTICLE 26.	 	COMMISSIONS	 	28
	ARTICLE 27.	 	REGULATIONS	 	28
	ARTICLE 28.	 	HAZARDOUS MATERIALS	 	30
	ARTICLE 29.	 	MISCELLANEOUS	 	32
	

EXHIBIT "A"	
 	

DEMISED PREMISES	
 	

 
	EXHIBIT "B"	 	CONSTRUCTION: TENANT ACCEPTANCE OF SPACE "AS IS"	 	 
	EXHIBIT "C"	 	TENANT CONSTRUCTION RULES AND REGULATIONS	 	 
	EXHIBIT "D"	 	RIGHT OF FIRST OPPORTUNITY	 	 
	EXHIBIT "E"	 	RENEWAL OPTION	 	 

   INDUSTRIAL COMPLEX LEASE

(California) 

ARTICLE 1.

DEFINITIONS AND CERTAIN BASIC PROVISIONS 

        1.1   The
following list sets out certain defined terms and certain financial and other information pertaining to this lease: 

        (a)   "Landlord":
MP CARIBBEAN, INC., a Delaware corporation, whose taxpayer identification number is 94-3226570. 

        (b)   Landlord's
address: c/o SSR Realty Advisors, Inc., One California Street, Suite 1400, San Francisco, California 94111, Attention: Asset Management and Legal
Department. 

        (c)   "Tenant":
ACCURAY INCORPORATED, a California corporation, whose taxpayer identification number is 77-0268932. 

        (d)   Tenant's
address: 

	Prior to Commencement Date:	 	570 Del Ray Avenue

Sunnyvale, California 94085
	

Upon Commencement Date:	
 	

1310 Chesapeake Terrace

Sunnyvale, CA 94089

        (e)   Tenant's
trade name: Accuray 

        (f)    Tenant's
guarantor: Not applicable. 

        (g)   "Agent":
South Bay Development Company, whose address is 1690 Dell Avenue, Campbell, California 95008, Attention: David Andris. 

        (h)   "Industrial
Complex": Landlord's property in the City of Sunnyvale, Santa Clara County, California, which property is commonly known as: Caribbean Corporate Center,
1310 - 1327 Chesapeake Terrace, Sunnyvale, California. 

        (i)    "Demised
Premises": that certain portion of one of the buildings (the "Building") in the Industrial Complex located at 1310 Chesapeake Terrace, Sunnyvale, California,
and more particularly shown on the floor plans attached hereto as Exhibit "A", which Landlord and Tenant acknowledge and agree for all purposes of this
lease to contain 40,000 square feet of rentable area. 

        (j)    "Commencement
Date": the date the Demised Premises are tendered to Tenant in their "as is" condition promptly following full execution of this lease. 

        "Rent
Commencement Date": the earlier to occur of (i) the date Tenant commences conducting business in the Demised Premises, or (ii) October 1, 2003. 

        (k)   "Lease
term": commencing on the Commencement Date and continuing for forty-eight (48) full calendar months after the Rent Commencement Date; provided, however,
that if the Rent Commencement Date is a date other than the first day of a calendar month, the lease term shall be extended by the number of days remaining in the calendar month in which the Rent
Commencement Date occurs; provided, further, however, that Tenant shall have the right to renew the lease term as more particularly set forth on Exhibit
"E" attached hereto. 

2

 

        (l)    Minimum
guaranteed rental shall be paid by Tenant in accordance with the following schedule: 

	Months
 
	 	Monthly Minimum

Guaranteed Rental

	01 - 12:	 	$	24,000.00
	13 - 24:	 	$	26,000.00
	25 - 36:	 	$	38,000.00
	37 - 48:	 	$	40,000.00

        (m)  Prepaid
rental: $24,000.00, being an estimate of the initial minimum guaranteed rental for the first month of the lease term, such prepaid rental being due and payable
upon execution of this lease by Tenant. 

        (n)   Security
deposit $300,000.00, such security deposit being due and payable upon execution of this lease by Tenant. See Article 8. 

        (o)   Permitted
use: Office, warehouse, light manufacturing and other legal uses related thereto, and for no other purpose whatsoever. 

        (p)   Tenant's
maximum insurance deductible: $5,000.00. 

        (q)   "Tenant's
Broker": Wayne Mascia & Associates. 

        (r)   "Tenants
Proportionate Share": 

	

Tenants Pro Rata Share of Building Common Area Costs:	
 	

55.11	
%
	

Tenant's Pro Rata Share of Parcel Common Area Costs:	
 	

27.13	
%
	

Tenant's Pro Rata Share of Industrial Complex Common	
 	

15.78	
%
	 	
 Areas Costs:	
 	

 	
 

        (s)   Tenant
parking: 152 unreserved parking spaces. 

ARTICLE 2.

GRANTING CLAUSE 

        2.1   Landlord
leases the Demised Premises to Tenant, and Tenant leases the Demised Premises from Landlord, upon all of the terms and conditions set forth in this lease.
Further, provided no event of default has occurred under this lease, Landlord agrees to make available to Tenant, at no additional charge to Tenant, on an unreserved basis in common with the other
tenants of the Industrial Complex, the number of parking spaces set out in Section 1.1(s) above. 

        2.2   Tenant
shall have the right of first opportunity more particularly described on Exhibit "D" attached hereto. 

ARTICLE 3.

DELIVERY OF DEMISED PREMISES 

        3.1   The
Demised Premises are being leased "AS IS", with Tenant accepting all defects, if any, and Landlord makes no warranty of any kind, express or implied, with respect to
the Demised Premises (without imitation, Landlord makes no warranty as to the habitability, fitness or suitability of the Demised Premises for a particular purpose nor as to the absence of any toxic
or otherwise hazardous substances). This Section 3.1 is subject to any contrary requirements under applicable law; however, in this regard Tenant acknowledges that it has been given the
opportunity to inspect the Demised Premises and to have qualified experts inspect the Demised Premises prior to the execution of this lease. 

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        3.2   Commencing
on the Commencement Date, Tenant shall have full access to the Demised Premises in order to make preparations for its occupancy thereof, including for space
planning, construction of tenant improvements, fixturization and the installation of Tenant's telephone and computer equipment and cabling and Tenant's furniture and other personal property. Tenant
shall not be obligated to pay minimum guaranteed rental or any common area pass-through charges during this period preceding the Rent Commencement Date. Tenant must provide Landlord with a
certificate of insurance prior to gaining possession of the Demised Premises. 

        3.3   If,
and so long as, Tenant pays the rent and keeps, observes and performs each and every term, covenant and condition of this lease on the part of Tenant to be kept,
observed and performed, Tenant shall peaceably enjoy the Demised Premises throughout the term without hindrance by Landlord or any person lawfully claiming through or under Landlord, subject to the
provisions of this lease. 

ARTICLE 4.

RENT 

        4.1   Intentionally
deleted. 

        4.2   Rental
shall accrue from the Rent Commencement Date, and shall be payable to Landlord at Agent's address specified in Section 1.1(g) above or at such other
address as Landlord shall so notify Tenant from time to time. 

        4.3   Tenant
shall pay to Landlord minimum guaranteed rental in monthly installments in the amounts specified in Section 1.1(l) of this lease. The first such monthly
installment shall be due and payable upon execution of this lease by Tenant, and subsequent installments shall be due and payable on or before the first day of each succeeding calendar month during
the lease term following the Rent Commencement Date; provided that if the Rent Commencement Date is a date other than the first day of a calendar month, there shall be due and payable on or before
such date as minimum guaranteed rental for the balance of such calendar month a sum equal to that proportion of the rent specified for the first full calendar month as herein provided, which the
number of days from the Rent Commencement Date to the end of the calendar month during which the Rent Commencement Date shall fall bears to the total number of days in such month. Tenant agrees to pay
to Landlord, if assessed by the jurisdiction in which the Industrial Complex is located, any sales, excise or other tax imposed, assessed or levied in connection with Tenant's payment of rents. 

        4.4   It
is understood that the minimum guaranteed rental is payable on or before the first day of each calendar month following the Rent Commencement Date (in accordance with
Sections 4.2 and 4.3 above), without offset or deduction of any nature. In the event any rental is not received within five (5) days after written notice, or if any rental payment is by check
which is returned for insufficient funds, then in addition to the past due amount Tenant shall pay to Landlord one of the following (the choice to be at the sole option of Landlord unless one of the
choices is improper under applicable law, in which event the other alternative will automatically be deemed to have been selected): (a) a late charge in an amount equal to ten percent (10%) of
the rental then due, in order to compensate Landlord for its administrative and other overhead expenses; or (b) interest on the rental then due at the maximum contractual rate which could
legally be charged in the event of a loan of such rental to Tenant (but in no event to exceed 11/2% per month), such interest to accrue continuously on any unpaid balance due to
Landlord by Tenant during the period commencing with the rental due date and terminating with the date on which Tenant makes full payment of all amounts owing to Landlord at the time of said payment.
Notwithstanding the foregoing, such five (5)-day notice period shall not be available to Tenant more than once in any twelve (12)-month period, following which (i.e. on the second
(2nd) such occurrence and thereafter) the late charge or interest shall be imposed immediately following failure to pay minimum guaranteed rental when due. Any such late charge or
interest 

4

 

payment
shall be payable as additional rental under this lease, shall not be considered a waiver by Landlord of any default by Tenant hereunder, and shall be payable immediately on demand. 

        4.5   If
Tenant fails in two (2) consecutive months to make rental payments within five (5) days after it is due, Landlord, in order to reduce its administrative
costs, may require, by giving written notice to Tenant (and in addition to any late charge or interest accruing pursuant to Section 4.4 above, as well as any other rights and remedies accruing
pursuant to Article 22 or Article 23 below, or any other provision of this lease or at law), that minimum guaranteed rentals are to be paid quarterly in advance instead of monthly, and
that all future rental payments are to be made on or before the due date by cash, cashier's check, or money order and that the delivery of Tenant's personal or corporate check will no longer
constitute a payment of rental as provided in this lease. Any acceptance of a monthly rental payment or of a personal or corporate check thereafter by Landlord shall not be construed as a subsequent
waiver of said rights. 

        4.6   Tenant
shall pay when due any and all sales taxes levied, imposed or assessed by the United States of America, the State of California, or any political subdivision
thereof or other taxing authority upon the minimum guaranteed rental, additional rent and all other sums payable hereunder. 

ARTICLE 5.

FINANCIAL REPORTS 

        5.1   Tenant
shall, promptly following request by Landlord from time to time, but not more often than once per calendar year, furnish a true and accurate audited statement of
its financial condition prepared in conformity with recognized accounting principles and in a form reasonably satisfactory to Landlord. In addition, Landlord may from time to time request of Tenant
copies of Tenant's most recent unaudited quarterly financial statements, which shall be delivered to Landlord promptly. 

ARTICLE 6.

TENANT'S RESPONSIBILITY FOR TAXES, OTHER REAL ESTATE CHARGES AND INSURANCE EXPENSES 

        6.1   Tenant
shall be liable for all taxes levied against personal property and trade fixtures placed by Tenant in the Demised Premises which taxes shall be paid when due and
before any delinquency. If any such taxes are levied against Landlord or Landlord's property and if Landlord elects to pay the same or if the assessed value of Landlord's property is increased by
inclusion of personal property and trade fixtures placed by Tenant in the Demised Premises and Landlord elects to pay the taxes based on such increase, Tenant shall pay to Landlord upon demand that
part of such taxes for which Tenant is primarily liable hereunder. 

        6.2   Tenant
shall also be liable for Tenant's Proportionate Share (as specified in Section 1.1(r) above) of all "real estate charges" (as defined below) and "insurance
expenses" (as defined below) related to the Industrial Complex or Landlord's ownership of the Industrial Complex. Tenant's obligations under this Section 6.2 shall be prorated during any
partial year (i.e., the first year and the last year of the lease term). Tenant's Proportionate Share shall be adjusted as reasonably determined by Landlord in the event that the total rentable area
of the buildings in the Industrial Complex shall change after the date hereof. "Real estate charges" shall include ad valorem taxes, general and special assessments, parking surcharges, any tax or
charge for governmental services (such as street maintenance or fire protection) which are attributable to the transfer or transaction directly or indirectly represented by this lease, by any sublease
or assignment hereunder or by other leases in the Industrial Complex or by any document to which Tenant is a party creating or transferring (or reflecting the creation or transfer of) any interest or
an estate in the Demised Premises and any tax or charge which replaces or is in addition to any of such above-described "real estate charges"; real estate charges shall also include any fees, expenses
or costs (including attorneys' fees, expert fees and the like) incurred by Landlord in protesting or contesting any assessments levied or the tax rate. "Real estate charges" shall not be deemed to
include sales tax payable by Tenant pursuant to Section 4.6 above and 

5

 

any
franchise, estate, inheritance or general income tax. "Insurance expenses" shall include all premiums and other expenses incurred by Landlord for liability insurance and fire and extended coverage
property insurance (plus whatever endorsements or special coverages which Landlord, in Landlord's sole discretion, may consider appropriate) business interruption, and rent loss, earthquake and any
other insurance policy which may be carried by Landlord insuring the Demised Premises, the Common Area, the Industrial Complex, or any improvements thereon. 

        6.3   At
Landlord's sole option, Landlord and Tenant shaft attempt to obtain separate assessments for Tenant's obligations pursuant to Section 6.1 and, with respect to
Section 6.2, for such of the "real estate charges" as are readily susceptible of separate assessment. To the extent of a separate assessment, Tenant agrees to pay such assessment before it
becomes delinquent and to keep the Demised Premises free from any lien or attachment moreover, as to all periods of time during the lease term, this covenant of Tenant shall survive the termination of
the lease. With regard to the calendar year during which the lease term expires, Landlord at its option either may bill Tenant when the charges become payable or may charge Tenant an estimate of
Tenant's pro rata share of whichever charges have been paid directly by Landlord (based upon information available for the current year plus, if current year information is not adequate in itself,
information relating to the immediately preceding year). 

        6.4   At
such time as Landlord has reason to believe that at some time within the immediately succeeding twelve (12) month period Tenant will owe Landlord any amounts
pursuant to one or more of the preceding sections of this Article 6, Landlord may direct that Tenant prepay monthly a pro rata portion of the prospective future payment (i.e., the prospective
future payment divided by the number of months before the prospective future payment will be due). Tenant agrees that any such prepayment directed by Landlord shall be due and payable monthly on the
same day that minimum guaranteed rental is due. 

        6.5   In
the event that any payment due from Tenant to Landlord is not received within five (5) days after its due date for any reason whatsoever, or if any such
payment is by check which is returned for insufficient funds, then in addition to the amount then due, Tenant shall pay to Landlord interest on the amount then due at the maximum contractual rate
which could legally be charged in the event of a loan of such amount to Tenant (but in no event to exceed 1-1/2% per month), such interest to accrue continuously on any unpaid balance
until paid. 

ARTICLE 7.

COMMON AREA  

        7.1   The
term "Common Area" is defined for all purposes of this lease as that part of the Industrial Complex intended for the common use of all tenants, including among other
facilities (as such may be applicable to the Industrial Complex), parking areas, private streets and alleys, landscaping, curbs, loading areas, sidewalks, recreation/picnic areas, malls and
promenades, lighting facilities, drinking fountains, meeting rooms, public toilets, and the like, but excluding (i) space in buildings (now or hereafter existing) designated for rental for
commercial purposes, as the same may exist from time to time; (ii) streets and alleys maintained by a public authority; (iii) areas within the Industrial Complex which may from time to
time not be owned by Landlord (unless subject to a cross-access agreement benefiting the area which includes the Demised Premises); and (iv) areas leased to a single-purpose user where access
is restricted. In addition, although the roofs of the buildings in the Industrial Complex are not literally part of the Common Area, they will be deemed to be so included for purposes of
(x) Landlord's ability to prescribe rules and regulations regarding same, and (y) their inclusion for purposes of common area maintenance reimbursements. Landlord reserves the right to
change from time to time the dimensions and location of the Common Area, as well as the dimensions, identities, locations and types of any buildings, signs or other improvements in the Industrial
Complex. For example, and without limiting the generality of the immediately preceding sentence, Landlord may 

6

 

from
time to time substitute for any parking area other areas reasonably accessible to the tenants of the Industrial Complex, which areas may be elevated, surface or underground. 

        7.2   Tenant,
and its employees and customers, and when duly authorized pursuant to the provisions of this lease, its sub-tenants, licensees and concessionaires,
shall have the nonexclusive right to use the Common Area (excluding roofs of buildings in the Industrial Complex) as constituted from time to time, such use to be in common with Landlord, other
tenants in the Industrial Complex and other persons permitted by Landlord to use the same, and subject to rights of governmental authorities, easements, other restrictions of record, and such
reasonable rules and regulations governing use as Landlord may from time to time prescribe. For example, and without limiting the generality of Landlord's ability to establish rules and regulations
governing all aspects of the Common Area, Tenant agrees as follows: 

        (a)   Tenant
shall not solicit business within the Common Area nor take any action which would interfere with the rights of other persons to use the Common Area. 

        (b)   Landlord
may temporarily close any part of the Common Area for such periods of time as may be necessary to make repairs or alterations or to prevent the public from
obtaining prescriptive rights. 

        (c)   With
regard to the roofs of the buildings in the Industrial Complex, use of the roofs is reserved to Landlord, or with regard to any tenant demonstrating to Landlord's
satisfaction a need to use same, to such tenant after receiving prior written consent from Landlord. 

        7.3   Landlord
shall be responsible for the operation, management and maintenance of the Common Area, the manner of maintenance and the expenditures therefor to be in the sole
discretion of Landlord, but to be generally in keeping with similar industrial centers within the same geographical area as the Industrial Complex. Landlord shall be the sole determinant of the type
and amount of access control services to be provided, if any. Landlord shall not be liable to Tenant, and Tenant hereby waives any claim against Landlord for (i) any unauthorized or criminal
entry of third parties into the Demised Premises or Industrial Complex, (ii) any damage to persons or property, except to the extent caused by the gross negligence or willful misconduct of
Landlord, or (iii) any loss of property in and about the Demised Premises or Industrial Complex from any unauthorized or criminal acts of third parties, regardless of any action, inaction,
failure, breakdown or insufficiency of access control services. 

        7.4   In
addition to the rentals and other charges prescribed in this lease, Tenant shall pay to Landlord Tenant's Proportionate Share of the cost of operation and maintenance
of the Common Area which may be incurred by Landlord in its discretion (hereinafter, collectively "Common Area Charges"), including, among other costs, those for lighting, painting, cleaning,
policing, inspecting, repairing and replacing; Tenant's Proportionate Share of capital expenditures and expenses incurred by Landlord to increase the operating efficiency of the Industrial Complex or
to cause the Common Area to comply with applicable Regulations (as such term is defined in Section 27.1), it being agreed that the cost of such capital expenditures and installation shall be
amortized over the reasonable life of the capital expenditure, with the reasonable life and amortization schedule being determined in accordance with generally accepted accounting principles
consistently applied; a reasonable portion of whatever management fee Landlord pays to the property manager for the Industrial Complex; a reasonable allowance for Landlord's overhead costs and the
cost of any insurance for which Landlord is not reimbursed pursuant to Section 6.2, but specifically excluding all expenses paid or reimbursed pursuant to Article 6. In addition,
although the roofs of the buildings in the Industrial Complex are not literally part of the Common Area, Landlord and Tenant agree that roof maintenance, repair and replacement shall be included as a
common area maintenance item to the extent not specifically allocated to Tenant under this lease nor to another tenant pursuant to its lease. With regard to capital expenditures other than the capital
expenditures contemplated by the first sentence of this Section, (i) the original investment in capital improvements, i.e., upon the initial construction of the Industrial Complex, shall not be
included, and (ii) improvements and replacements, to the extent capitalized on Landlord's 

7

 

records,
shall be included only to the extent of a reasonable depreciation or amortization (including interest accruals commensurate with Landlord's interest costs). If this lease should commence on a
date other than the first day of a calendar year or terminate on a date other than the last day of a calendar year, Tenant's reimbursement obligations under this Section 7.4 shall be prorated
based upon Landlord's expenses for the entire calendar year. Tenant shall make such payment to Landlord on demand, at intervals not more frequent than monthly. Landlord may, at its option, make
monthly or other periodic charges based upon the estimated annual cost of operation and maintenance of the Common Area, payable in advance but subject to adjustment after the end of the year on the
basis of the actual cost for such year. Landlord has the right to establish as a reserve, such amounts as Landlord deems reasonable for the maintenance, repair and restoration of the roof and parking
areas of the Industrial Complex. In the event that any payment due from Tenant to Landlord is not received within five (5) days after its due date for any reason whatsoever, or if any such
payment is by check which is returned for insufficient funds, then, in addition to the amount then due, Tenant shall pay to Landlord interest on the amount then due at the maximum contractual rate
which could legally be charged in the event of a loan of such amount to Tenant (but in no event to exceed 1-1/2% per month), such interest to accrue continuously on any unpaid balance
until paid. Any delay or failure of Landlord in delivering any estimate or statement described in this Section 7.4 or in computing or billing Tenant's Proportionate Share of the foregoing
Common Area Charges shall not constitute a waiver of Landlord's right to require an increase in rent as provided herein or in any way impair the continuing obligations of Tenant under this Section. 

        7.5   Landlord
and Tenant agree that Tenant's Proportionate Share of the Common Area Charges will be divided into the three components set forth in Section 1.1(r)
above. For the purposes of this lease, "Building Common Area Costs" shall consist of those Common Area Charges which Landlord determines pertain exclusively to the Building; "Parcel Common Area Costs"
shall consist of those Common Area Charges which Landlord determines shall be shared among the buildings located on the same real property tax parcel as Tenant; and "Industrial Complex Common Area
Costs" shall consist of those Common Area Charges which Landlord determines shall be shared among all the buildings at the Industrial Complex. For purposes of determining Tenant's Proportionate Share
of Common Area Charges, (1) Tenant's Pro Rata Share of Building Common Area Costs shall equal a fraction the numerator of which shall be the square footage of the Premises and the denominator
of which shall be the square footage of the Building; (2) Tenant's Pro Rata Share of Parcel Common Area Costs shall equal a fraction the numerator of which shall be the square footage of the
Premises and the denominator of which shall be the square footage of all buildings located on the same real property tax parcel as Tenant; and (3) Tenant's Pro Rata Share of Industrial Complex
Common Area Costs shall equal a fraction the numerator of which shall be the square footage of the Premises and the denominator of which shall be the square footage of all buildings at the Industrial
Complex. Landlord and Tenant expressly acknowledge and agree that for purposes of calculating Tenant's payments of Common Area Charges, the percentages listed as Tenant's Pro Rata Share of Building
Common Area Costs, Parcel Common Area Costs and Industrial Complex Common Area Costs in Section 1.1(r) above, respectively, are correct. 

ARTICLE 8.

SECURITY DEPOSIT 

        8.1   Tenant
acknowledges its obligation to deposit with Landlord the sum stated in Section 1.1(n) above, to be held by Landlord without interest as security for the
performance by Tenant of Tenant's covenants and obligations under this lease ("Security Deposit"). Tenant agrees that such Security Deposit may be commingled with Landlord's other funds and that such
Security Deposit is not an advance payment of rental or a measure of Landlord's damages in case of default by Tenant. Upon the occurrence of any event of default by Tenant, Landlord may, from time to
time, without prejudice to any other remedy provided herein or provided by law, use such funds to the extent necessary to make 

8

 

good
any arrears of rentals and any other damage, injury, expense or liability caused to Landlord by such event of default, and Tenant shall pay to Landlord on demand the amount so applied in order to
restore the Security Deposit to its original amount. If Tenant is not then in default hereunder, any remaining balance of such Security Deposit shall be returned by Landlord to Tenant upon termination
of this lease (subject to the provisions of Section 19.6 below). Tenant hereby waives the protections of Section 1950.7(c) of the California Civil Code, as it may hereafter be amended,
or similar laws of like import. 

        8.2   Alternatively,
Tenant may fulfill its obligation to provide a Security Deposit under this lease by delivering to Landlord, either concurrently with the execution of this
lease by Tenant, or at any later date during the lease term, an original irrevocable standby letter of credit (the "Letter of Credit") in the amount specified in Section 1.1(n) above, naming
Landlord as beneficiary, which Landlord may draw upon to cure any default under this lease or to compensate Landlord for any damage Landlord incurs as a result of Tenant's failure to perform any of
its obligations hereunder. Any such draw on the Letter of Credit shall not constitute a waiver of any other rights of Landlord with respect to such default or failure to perform. The Letter of Credit
shall be issued by a major commercial bank reasonably acceptable to Landlord, with a San Francisco or San Jose service and claim point for the Letter of Credit, have an expiration date not earlier
than sixty (60) days after the Expiration Date (or, in the alternative, have a term of not less than one (1) year and be automatically renewable for an additional one (1) year
period unless written notice of non-renewal is given by the issuer to Landlord not later than sixty (60) days prior to the expiration thereof) and shall provide that landlord may
make partial and multiple draws thereunder, up to the face amount thereof. In addition, the Letter of Credit shall provide that, in the event of Landlord's assignment or other transfer of its interest
in this lease, the Letter of Credit shall be freely transferable by Landlord, without charge and without recourse, to the assignee or transferee of such interest and the bank shall confirm the same to
Landlord and such assignee or transferee. The Letter of Credit shall provide for same day payment to Landlord upon the issuer's receipt of a sight draft from Landlord together with Landlord's
certificate certifying that the requested sum is due and payable from Tenant and Tenant has failed to pay, and with no other conditions, and otherwise be in form and content satisfactory to Landlord.
If the Letter of Credit has an expiration date earlier than sixty (60) days after the Expiration Date, then throughout the term hereof, Tenant shall provide evidence of renewal of the Letter of
Credit to Landlord at least sixty (60) days prior to the date the Letter of Credit expires. If Landlord draws on the Letter of Credit pursuant to the terms hereof, Tenant shall immediately
replenish the Letter of Credit or provide Landlord with an additional letter of credit conforming to the requirements of this paragraph so that the amount available to Landlord from the Letter(s) of
Credit provided hereunder is the amount specified above in Section 1.1(n). Tenant's failure to deliver any replacement, additional or extension of the Letter of Credit, or evidence of renewal
of the Letter of Credit, within the time specified under this lease shall entitle Landlord to draw upon the Letter of Credit then in effect. If no event of default (or breach that subsequently matures
into an event of default) is outstanding at the expiration or termination of this lease, then within sixty (60) days after such expiration or termination, Landlord shall return to Tenant the
Letter of Credit or the balance of the Letter of Credit proceeds then held by Landlord; provided, however, that in no event shall any such return be construed as an admission by Landlord that Tenant
has performed all of its covenants and obligations hereunder. 

        8.3   If
Landlord liquidates the Letter of Credit as provided in the penultimate sentence of Section 8.2 above, Landlord shall hold the funds received from the Letter
of Credit as security for Tenant's performance under this lease, and Landlord shall not be required to segregate such Security Deposit from its other funds, and no interest shall accrue or be payable
to Tenant with respect thereto. Such funds shall be handled in a manner consistent with the terms of Section 8.1 above. 

        8.4   Notwithstanding
the foregoing provisions of this Article 8 to the contrary, if Tenant has faithfully performed all of its obligations under this lease and is not
then and has not been in default hereunder, then the amount of the Security Deposit or Letter of Credit, as applicable, may be reduced 

9

 

to
$150,000.00 after the occurrence of three (3) consecutive calendar quarters of profitability by Tenant, as hereafter defined, and as proven to Landlord's reasonable satisfaction following
submission to Landlord by Tenant of documentation evidencing same. 

        8.5   Notwithstanding
the foregoing provisions of this Article 8 to the contrary, if Tenant has faithfully performed all of its obligations under this lease and is not
then and has not been in default hereunder, and the reduction described in Section 8.4 has occurred, then the amount of the Security Deposit or Letter of Credit, as applicable, may be reduced
from $150,000.00 to $75,000 after the occurrence of two (2) additional consecutive calendar quarters of profitability by Tenant, as hereafter defined, and as proven to Landlord's reasonable
satisfaction following submission to Landlord by Tenant of documentation evidencing same. 

        8.6   For
the purposes of Sections 8.4 and 8.5 above, "consecutive calendar quarters of profitability by Tenant" shall be deemed to have been achieved if either of the
following shall occur: 

        (a)   Tenant
is profitable for three (3) or two (2) consecutive calendar quarters, as applicable; or 

        (b)   If
Tenant is not profitable for one (1) [and only one] of the three (3) or two
(2) consecutive calendar quarters, as applicable, but Tenant is sufficiently profitable in the calendar quarter immediately following it such that the sum of the net loss in the unprofitable
calendar quarter plus the net income in the succeeding calendar quarter equals a positive result. 

        The
calendar quarter preceding the Commencement Date (i.e., ending on June 30, 2003), if profitable, may count toward the three (3) calendar quarters required for
Section 8.4 above. 

ARTICLE 9.

USE AND CARE OF DEMISED PREMISES 

        9.1   The
Demised Premises shall be used and occupied by Tenant solely for the permitted use specified in Section 1.1(o) above and for no other purpose. Tenant, at its
sole cost and expense, shall obtain and keep in effect during the term, all permits, licenses and other authorizations necessary to permit Tenant to use and occupy the Demised Premises for the
permitted use. Without limiting the generality of the foregoing, Tenant shall not use or store any gasoline or flammable or so called "Red Label materials in or about the Demised Premises. All
equipment used within the Demised Premises shall be subject to approval by Landlord's insurance carriers and shall be Underwriters Laboratory or Factory Mutual approved for the uses intended, evidence
of which shall be furnished to Landlord upon request. Tenant shall not operate any machinery or equipment in the Demised Premises which, in Landlord's sole discretion, shall cause any excessive noise,
vibration, damage or disturbance to the other tenants in the Industrial Complex. 

        9.2   Tenant
shall take good care of the Demised Premises and keep the same free from waste at all times. Tenant shall not over-load the floors in the Demised
Premises, nor deface or injure the Demised Premises; provided, however, that Landlord and Tenant agree that if Tenant needs to reinforce or install anchors in the flooring in portions of the Demised
Premises to accommodate Tenant's permitted use, Landlord will not unreasonably withhold its consent to Tenant's request for approval of same nor will Landlord require Tenant to remove at termination
any such anchors or reinforcement which, after Tenant restoration, do not leave holes in the floor or cause the floor surface to be uneven. Tenant shall keep the Demised Premises and all sidewalks,
service-ways and loading areas adjacent to the Demised Premises neat, clean and free from dirt, rubbish, ice or snow at all times. Tenant shall store all trash and garbage within the
Demised Premises or in a trash dumpster or similar container approved by Landlord as to type, location and screening; and Tenant shall arrange for the regular pick-up of such trash and
garbage at Tenant's expense (unless Landlord finds its necessary to furnish such a service, in which event Tenant shall be charged an equitable portion of the total of the charges to all tenants using
the service). Receiving and delivery of goods and merchandise and removal 

10

 

of
garbage and trash shall be made only in the manner and areas prescribed by Landlord. Tenant shall not operate an incinerator or burn trash or garbage within the Industrial Complex. 

ARTICLE 10.

MAINTENANCE AND REPAIR OF DEMISED PREMISES 

        10.1 Landlord
shall keep the foundation, the exterior walls (except plate glass; windows, doors and other exterior openings; window and door frames, molding, closure
devices, locks and hardware; special store fronts; lighting, heating, air conditioning, plumbing and other electrical, mechanical and electromotive installations, equipment and fixtures; signs,
placards, decorations or other advertising media of any type; and interior painting or other treatment of the interior side of the exterior walls) and the roof (subject to the second sentence in
Section 7.4 above) of the Demised Premises in good repair. Landlord, however, shall not be required to make any repairs occasioned by the act or negligence of Tenant, its agents, contractors,
employees, subtenants, invitees, customers, licensees and concessionaires (including, but not limited to, roof leaks resulting from Tenant's installation of air conditioning equipment or any other
roof penetration or placement); and the provisions of the previous sentence are expressly recognized to be subject to the provisions of Article 17 and Article 18 of this lease. In the
event that the Demised Premises should become in need of repairs required to be made by Landlord hereunder, Tenant shall give immediate written notice thereof to Landlord and Landlord shall have a
reasonable time after receipt by Landlord of such written notice in which to make such repairs. Landlord shall not be liable to Tenant for any interruption of Tenant's business or inconvenience caused
due to any work performed in the Demised Premises or in the Industrial Complex pursuant to Landlord's rights and obligations under this lease, so long as the work is performed without gross negligence
or willful misconduct 

        10.2 Tenant
shall keep the Demised Premises in good, clean and habitable condition and shall at its sole cost and expense keep the Demised Premises free of insects, rodents,
vermin and other pests and make all needed repairs and replacements, including, replacement of cracked or broken glass, except for repairs and replacements required to be made by Landlord under the
provisions of Section 10.1, Article 17 and Article 18. Without limiting the coverage of the previous sentence, it is understood that Tenant's responsibilities therein include the
repair and replacement in accordance with all applicable Regulations (as defined in Section 27.1 below) of all lighting, heating, air conditioning, plumbing and other electrical, mechanical and
electromotive installations, equipment and fixtures and also include all utility repairs in ducts, conduits, pipes and wiring, and any sewer stoppage located in, under and above the Demised Premises,
regardless of when or how the defect or other cause for repair or replacement occurred or became apparent; provided, however, that as to the maintenance and repair of the HVAC equipment in the Demised
Premises, Landlord shall have the option of contracting directly with an HVAC servicing company for any such work and charging Tenant for all costs thereof. If any repairs required to be made by
Tenant hereunder are not made within ten (10) days after written notice delivered to Tenant by Landlord, Landlord may at its option make such repairs without liability to Tenant for any loss or
damage which may result to its stock or business by reason of such repairs and Tenant shall pay to Landlord upon demand, as additional rental hereunder, the cost of such repairs plus interest at the
maximum contractual rate which could legally be charged in the event of a loan of such payment to Tenant (but in no event to exceed 1-1/2% per month), such interest to accrue
continuously from the date of payment by Landlord until repayment by Tenant At the expiration of this lease, Tenant shall surrender the Demised Premises in good condition, excepting reasonable wear
and tear and losses required to be restored by Landlord in Section 10.1, Article 17 and Article 18 of this lease. 

        10.3 Tenant
waives the right to make repairs at Landlords expense under Sections 1941 and 1942 of the California Civil Code and all other laws now or hereafter in effect. 

11

   ARTICLE 11.

ALTERATIONS 

        11.1 Tenant
shall not make any alterations, additions or improvements to the Demised Premises (collectively, the "Alterations") without the prior written consent of
Landlord, except for the installation of unattached, movable trade fixtures which may be installed without drilling, cutting or otherwise defacing the Demised Premises. Tenant shall furnish complete
plans and specifications to Landlord at the time it requests Landlord's consent to any Alterations if the desired Alterations (i) will affect the Industrial Complex's mechanical, electrical,
plumbing or life safety systems or services, or (ii) will affect any structural component of the Demised Premises or the Industrial Complex, or (iii) will require the filing of plans and
specifications with any governmental or quasi-governmental agency or authority, or (iv) will cost in excess of Twenty-Five Thousand Dollars ($25,000.00). Subsequent to obtaining
Landlord's consent and prior to commencement of the Alterations, Tenant shall deliver to Landlord any building permit required by applicable law and a copy of the executed construction contract(s).
Tenant shall reimburse Landlord with ten (10) days after the rendition of a bill for all of Landlord's actual out-of-pocket costs incurred in connection with any
Alterations, including, without limitation, all management, engineering, outside consulting, and construction fees incurred by or on behalf of Landlord for the review and approval of Tenant's plans
and specifications and for the monitoring of construction of the Alterations. If Landlord consents to the making of any Alterations, such Alterations shall be made by Tenant at Tenant's sole cost and
expense by a contractor approved in writing by Landlord, such approval not to be unreasonably withheld. Tenant shall give Landlord not less than ten (10) days advance written notice of the
commencement of Tenant's Alterations to enable Landlord to post and record notices of nonresponsibility. Tenant shall require its contractor to maintain insurance in such amounts and in such form as
Landlord may require. Any construction, alteration, maintenance, repair, replacement, installation, removal or decoration undertaken by Tenant in connection with the Demised Premises shall be
completed in accordance with plans and specifications which must be approved by Landlord, shall be carried out in a good, workmanlike and prompt manner and in accordance with the provisions of  Exhibit
"C" attached hereto, shall comply with an applicable Regulations of the authorities having jurisdiction thereof, and shall be subject to
supervision by Landlord or its employees, agents or contractors. Without limiting the generality of the immediately preceding sentence, any installation or replacement of Tenant's heating or air
conditioning equipment must be effected strictly in accordance with Landlord's instructions, the Clean Air Act and any other applicable Regulations. Without Landlord's prior written consent, Tenant
shall not use any portion of the Common Areas either within or without the Industrial Complex in connection with the making of any Alterations. If the Alterations which Tenant causes to be constructed
result in Landlord being required to make any alterations and/or improvements to other portions of the Industrial Complex in order to comply with any applicable Regulations, then Tenant shall
reimburse Landlord upon demand for all costs and expenses incurred by Landlord in making such alterations and/or improvements. Any Alterations made by Tenant shall become the property of Landlord upon
installation and shall remain on and be surrendered with the Demised Premises upon the expiration or sooner termination of this lease; provided, however, that Tenant shall, upon demand by Landlord, at
Tenant's sole cost and expense, forthwith and with all due diligence remove all or any portion of any Alterations made by Tenant which are requested by Landlord to be removed and repair and restore
the Demised Premises in a good and workmanlike manner to their original condition, reasonable wear and tear excepted. Notwithstanding the foregoing, at Tenant's request, Landlord shall advise Tenant
at the time of Landlord's approval of any Alteration requested by Tenant whether Landlord shall require that the Alteration be removed by Tenant from the Demised Premises at the expiration or earlier
termination of the lease term; provided, however, that in all events Tenant shall be obligated to remove the demonstration cell and the light lead shielding around same. 

        11.2 All
construction work done by Tenant within the Demised Premises shall be performed in a good and workmanlike manner with new materials of first-class quality,
lien-free and in compliance 

12

 

with
all governmental requirements and Regulations, and in such manner as to cause a minimum of interference with other construction in progress and with the transaction of business in the Industrial
Complex. Tenant agrees to indemnify Landlord and hold Landlord harmless against any loss, liability or damage resulting from such work, and Tenant shall, if requested by Landlord, furnish a bond or
other security satisfactory to Landlord against any such loss, liability or damage. 

        11.3 In
the event Tenant uses a general contractor to perform construction work within the Demised Premises, Tenant shall, prior to the commencement of such work, require
said general contractor to execute and deliver to Landlord a waiver and release of any and all claims against Landlord and liens against the Industrial Complex to which such contractor might at any
time be entitled. The delivery of the waiver and release of lien within the time period set forth above shall be a condition precedent to Tenant's ability to enter on and begin its construction work
at the Demised Premises and, if applicable, to any reimbursement from Landlord for its construction work. 

        11.4 Nothing
contained in this lease shall be construed as constituting the consent or request of Landlord, express or implied, to or for the performance by any contractor,
laborer, materialman or vendor of any labor or services or for the furnishing of any materials for any construction, alteration, addition, repair or demolition of or to the Demised Premises or any
part thereof. All materialmen, contractors, artisans, mechanics, laborers and any other persons now or hereafter furnishing any labor, services, materials, supplies or equipment to Tenant with respect
to any portion of the Demised Premises are hereby charged with notice that they must look exclusively to Tenant to obtain payment for same. Tenant and any subtenants shall have no power to do any act
or make any contract which may create or be the foundation of any lien, mortgage or other encumbrance upon the reversionary or other estate of Landlord, or any interest of Landlord in the Demised
Premises. NOTICE IS HEREBY GIVEN THAT LANDLORD IS NOT AND SHALL NOT BE LIABLE FOR ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO TENANT OR TO ANYONE HOLDING THE DEMISED PREMISES OR
ANY PART THEREOF, AND THAT NO MECHANICS' OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN AND TO THE DEMISED PREMISES. 

        11.5 In
the event that Landlord elects to remodel all or any portion of the Industrial Complex, Tenant will cooperate with such remodeling, including Tenant's tolerating
temporary inconveniences (and even the temporary removal of Tenant's signs in order to facilitate such remodeling, as it may relate to the exterior of the Demised Premises). 

ARTICLE 12.

LANDLORD'S RIGHT OF ACCESS  

        12.1 Landlord
and Landlord's agents and representatives shall have the right to enter the Demised Premises at any time in case of an emergency, and at all reasonable times
for any purpose permitted pursuant to the terms of this lease, including, but not limited to, examining the Demised Premises; making such repairs or alterations therein as may be necessary or
appropriate in Landlord's sole judgment for the safety and preservation thereof; erecting, installing, maintaining, repairing or replacing wires, cables, conduits, vents, ducts, risers, pipes, HVAC
equipment or plumbing equipment running in, to or through the Demised Premises; showing the Demised Premises to prospective purchasers or mortgagees and during the last year of this lease, prospective
tenants; and posting notices of nonresponsibility. 

        12.2 If
requested in writing by Landlord, Tenant shall give Landlord a key for all of the doors for the Demised Premises, excluding Tenant's vaults, safes and files.
Landlord shall have the right to use any and all means to open the doors to the Demised Premises in an emergency in order to obtain entry thereto without liability to Tenant therefor. Any entry to the
Demised Premises by Landlord by any of 

13

 

the
foregoing means, or otherwise, shall not be construed or deemed to be a forcible or unlawful entry into or a detainer of the Demised Premises, or an eviction, partial eviction or constructive
eviction of Tenant from the Demised Premises or any portion thereof, and shall not relieve Tenant of its obligations hereunder. 

ARTICLE 13.

SIGNS; STORE FRONTS 

        13.1 Tenant
shall not place or permit to be placed any signs upon (i) the roof of the Demised Premises, or (ii) the Common Areas or any exterior area of the
Industrial Complex without Landlord's prior written approval which approval shall not be unreasonably withheld or delayed provided any proposed sign for the Demised Premises is placed only in those
locations as may be designated by Landlord, complies with the sign criteria promulgated by Landlord from time to time, and complies with applicable city ordinances. Upon request of Landlord, Tenant
shall immediately remove any sign, advertising material or lettering which Tenant has placed or permitted to be placed upon the exterior or interior surface of any door or window or at any point
inside the Demised Premises, on the exterior of the Industrial Complex if required in connection with any cleaning, maintenance or repairs to the Industrial Complex or which, in Landlord's reasonable
opinion, is of such a nature as to not be in keeping with the standards of the Industrial Complex and if Tenant fails to do so, Landlord may without liability remove the same at Tenant's expense.
Tenant shall comply with such regulations as may from time to time be promulgated by Landlord governing signs, advertising material or lettering of an tenants in the Industrial Complex. 

ARTICLE 14.

UTILITIES 

        14.1 Tenant
shall obtain all water, electricity, sewerage, gas, telephone and other utilities directly from the public utility company furnishing same. Any meters required
in connection therewith shall be installed at Tenant's sole cost. Tenant shall pay all utility deposits and fees, and all monthly service charges for water, electricity, sewage, gas, telephone and any
other utility services furnished to the Demised Premises during the term of this lease. In the event any such utilities are not separately metered on the Commencement Date, then until such time as
such services are separately metered, Tenant shall pay Landlord Tenant's equitable share of the cost of such services, as determined by Landlord. If for any reason the use of any utility is measured
on a meter(s) indicating the usage of Tenant and other tenants of the Industrial Complex. Tenant and such other tenants shall allocate the cost of such utility amongst themselves and shall each be
responsible for the payment of its allocable share. Landlord shall furnish and install all piping, feeders, risers and other connections necessary to bring utilities to the perimeter walls of the
Demised Premises. Anything to the contrary notwithstanding, Tenant shall remain obligated for the payment of Tenant's pro rata share of any heating costs and/or other utilities or services furnished
to the Common Areas pursuant to Section 7.4. 

        14.2 Tenant
shall have the right to use the existing heating, air conditioning and ventilation equipment in the Demised Premises, if any. All such equipment shall be
maintained, repaired and replaced, as necessary, by Tenant at its sole expense and shall be surrendered by Tenant to Landlord at the end of the term of this lease together with the Demised Premises.
Landlord makes no representation or warranty as to the condition or capacity of such equipment. Landlord shall have no obligation whatsoever to provide the Demised Premises with any additional heat,
air conditioning, ventilation or hot water. 

        14.3 Landlord
shall not be liable for any interruption whatsoever, nor shall Tenant be entitled to an abatement or reduction of rent on account thereof, in utility services
not furnished by Landlord, nor for interruptions in utility services furnished by Landlord which are due to fire, accident, strike, acts of 

14

 

God
or other causes beyond the control of Landlord or which are necessary or useful in connection with making any alterations, repairs or improvements. 

        14.4 Tenant
shall not install any equipment which exceeds or overloads the capacity of the utility facilities serving the Demised Premises. 

ARTICLE 15.

INSURANCE COVERAGES 

        15.1 Landlord
shall procure and maintain throughout the term of this lease a policy or policies of insurance, at its sole cost and expense (but subject to Article 6
above), causing the industrial Complex to be insured under standard fire and extended coverage insurance (excluding hurricane and storm insurance unless readily obtainable at commercially reasonable
rates) and liability insurance (plus whatever endorsements or special coverages Landlord, in its sole discretion, may consider appropriate), to the extent necessary to comply with Landlord's
obligations pursuant to other provisions of this lease. All payments for losses thereunder shall be made solely to Landlord. If the annual premiums charged to Landlord shall exceed the standard rates
because Tenant's operations, the contents of the Demised Premises, or improvements made to the Demised Premises beyond standard improvements result in extra-hazardous exposure, Tenant shall pay the
excess amount of the premium upon demand therefor by Landlord. 

        15.2 Tenant
shall procure and maintain throughout the term of this lease, at its sole cost and expense, all of the following insurance coverages: 

        (a)   Commercial
General Liability Insurance providing coverage for bodily injury (including death), property damage and products liability insurance (where such exposure
exists). This policy shall contain a broad form contractual liability endorsement under which the insurer agrees to insure Tenant's obligations under Section 16.2 and Article 21 hereof.
Such insurance shall have a combined single limit of not less than Three Million Dollars ($3,000,000) per occurrence, or such greater amount as Landlord may from time to time require. If Tenant uses
vehicles, owned and non-owned, in any way to carry out business on or about the Industrial Complex, Tenant shaft also maintain Motor Vehicle Liability Insurance; such insurance shall have
a combined single limit of not less than One Million Dollars ($1,000,000) for bodily injury and property damage. 

        (b)   "All
Risk" coverage insurance covering Tenant's personal property, fixtures, improvements, wall coverings, floor coverings, window coverings, signs, alterations,
furniture, furnishings, equipment, lighting, ceilings, heating, ventilation and air conditioning equipment and interior plumbing against loss or damage by fire, flood, windstorms, hail, earthquakes,
explosion, riot, damage from aircraft and vehicles, smoke damage, vandalism and malicious mischief and such other risks as are from time to time covered under "extended coverage" endorsements and
special extended coverage endorsements commonly known as "all risks" endorsements, containing the waiver of subrogation required in Section 16.3 of this lease and in an amount equal to the full
replacement value thereof, with business interruption insurance covering the Demised Premises. Replacement value is understood to mean the cost to replace without deduction for depreciation. 

        (c)   State
Worker's Compensation Insurance in the statutorily mandated limits. 

        (d)   Employer's
Liability Insurance with limits of not less than One Hundred Thousand Dollars ($100,000) for bodily injury per accident and each disease, per employee, and a
total combined limit for bodily injury in amounts not less than One Hundred Thousand ($100,000) per accident and Five Hundred Thousand ($500,000) per each disease, or such greater amount as Landlord
may from time to time require. 

        (e)   Plate
Glass Insurance. 

15

 

        It
is expressly understood and agreed that the foregoing minimum limits of insurance coverage shall not limit the liability of Tenant for its acts or omissions as provided in this lease.
All of the foregoing insurance policies (with the exception of Worker's Compensation Insurance to the extent not available under applicable law) shall name Landlord, SSR Realty Advisors, Inc.,
the Agent identified in Section 1.1(g), any mortgagee, the managing agent for the Industrial Complex, and such other parties as Landlord shall from time to time designate, as additional
insureds as their respective interests may appear, through an ISO Additional Insured Endorsement CG20261185 or equivalent, and shall provide that any loss shall be payable to Landlord and such other
additional insured parties as their respective interests may appear. All insurance required hereunder shall be placed with companies which are rated A:VII or better by Best's Insurance Guide (or such
other comparable publication if Best's is no longer published) and which are licensed to do business in the State of California. All such policies shall be written as primary policies with deductibles
not to exceed the amount specified in Section 1.1(p) above: provided, however, that the deductible for the Plate Glass Insurance shall not exceed Two Hundred Fifty Dollars ($250). Any other
policies, including Landlord's policy, will serve as excess coverage. Tenant shall deliver duplicate original copies of all such policies and all endorsements thereto (or certificates evidencing that
the required insurance coverages and endorsements, including waiver of subrogation, are in full force and effect) to Landlord, prior to the Commencement Date, or, in the case of renewals thereto,
fifteen (15) days prior to the expiration of the prior insurance policy, together with evidence that (1) such policies are fully paid for, and (2) no cancellation, material change
or
non-renewal thereof shall be effective except upon thirty (30) days' prior written notice by registered mail from the insurer to Landlord, as well as to Landlord's managing agent
(at the address for the payment of rent set forth in Section 4.2 above). Whenever, in Landlord's reasonable judgment, good business practice or change in conditions indicate a need for
additional or different types of insurance, Tenant shall, within fifteen (15) days of receipt of Landlord's request therefor, obtain the insurance at its own expense. If Tenant should fail to
comply with the foregoing requirements relating to insurance, Landlord may obtain such insurance and Tenant shall pay to Landlord on demand as additional rental hereunder the premium cost thereof plus
interest at the maximum contractual rate (but in no event to exceed 1-1/2% per month) from the date of payment by Landlord until repaid by Tenant. 

        15.3 In
addition to the foregoing, Tenant shall obtain certificates of insurance evidencing Commercial General Liability Insurance, including Completed Operations, Motor
Vehicle Liability Insurance, Worker's Compensation Insurance and Employer's Liability Insurance in the amounts required above from any contractor or subcontractor engaged by Tenant for repairs or
maintenance during the lease term, and such liability insurance shall name Landlord, SSR Realty Advisors, Inc., South Bay Development Company or any successor property manager or managing agent
for the Complex, any mortgagee, and such other parties as Landlord shall from time to time designate, as additional insureds as their respective interests may appear, through an ISO Additional Insured
Endorsement CG20261185 or equivalent, and shall provide that any loss shall be payable to Landlord and such other additional insured parties as their respective interests may appear. 

ARTICLE 16.

WAIVER OF LIABILITY; MUTUAL WAIVER OF SUBLETTING 

        16.1 Landlord
and Landlord's agents and employees shall not be liable to Tenant, nor to Tenant's employees, agents, contractors, subcontractors, invitees, subtenants or
licensees, nor to any other person whomsoever, for any injury to person or damage to property caused by the Demised Premises or other portions of the Industrial Complex becoming out of repair or by
defect or failure of any structural element of the Demised Premises or of any equipment, pipes or wiring, or broken glass, or by the backing up of drains, or by gas, water, steam, electricity, or oil
leaking, escaping or flowing into the Demised Premises (except where due to Landlord's willful failure to make repairs required to be made 

16

 

by
Landlord hereunder, after the expiation of a reasonable time after written notice to Landlord of the need for such repairs), nor shall Landlord be liable to Tenant, nor to Tenant's employees,
agents, contractors, subcontractors, invitees, subtenants or licensees, nor to any other person whomsoever, for any loss or damage that may be occasioned by or through the acts or omissions of other
tenants of the Industrial Complex or of any other persons whomsoever, excepting only duly authorized employees and agents of Landlord. Landlord shall not be held responsible in any way on account of
any construction, repair or reconstruction (including widening) of any private or public roadways, walkways or utility lines. 

        16.2 Landlord
shall not be liable to Tenant or to Tenant's employees, agents, contractors, subcontractors, invitees, subtenants or licensees, or to any other person
whomsoever, for any injury to person or damage to property on or about the Demised Premises or the Common Area caused by the negligence or misconduct of Tenant, its employees, agents, contractors,
subcontractors, invitees, subtenants or licensees, or of any other person entering the Industrial Complex under express or implied invitation of Tenant (with the exception of invitees in the Common
Area), or arising out of the use of the Demised Premises by Tenant and the conduct of its business therein, or arising out of any breach or default by Tenant in the performance of its obligations
under this lease; and Tenant hereby agrees to indemnify, defend and hold Landlord harmless from any loss, expense or claims arising out of such damage or injury. Furthermore, Tenant agrees to
indemnify, defend and hold Landlord harmless from and against any and all liability, claims, demands, causes of action of any kind and nature arising or growing out of or in any way connected with
Tenant's use, occupancy, management or control of the Demised Premises and Tenant's operations or activities in the Industrial Complex. Upon notice from Landlord, Tenant shall defend any such claim,
demand, cause of action or suit referenced hereinabove at Tenant's expense by counsel satisfactory to Landlord in its sole discretion. 

        16.3 Landlord
and Tenant each hereby release the other from any and all liability or responsibility to the other, or to any other party claiming through or under them by way
of subrogation or otherwise, for any loss or damage to property caused by a casualty which is insurable under standard fire and extended coverage insurance; provided, however, that this mutual waiver
shall be applicable only with respect to a loss or damage occurring during the time when property insurance policies, which are readily available in the marketplace, contain a clause or permit an
endorsement to the effect that any such release shall not adversely affect or impair the policy or the right of the insured party to receive proceeds under the policy; provided, further, that this
release shall not be applicable to the portion of any damage which is not reimbursed by the damaged party's insurer because of the "deductible" in the damaged party's insurance coverage. The release
specified in this Section 16.3 is cumulative with any releases or exculpation's which may be contained in other provisions of this lease. Landlord and Tenant agree that all policies of
insurance obtained by them pursuant to the terms of this lease shall contain provisions or endorsements thereto waiving the insurer's rights of subrogation with respect to claims against the other,
and, unless the policies permit waiver of subrogation without notice to the insurer, each shall immediately notify its insurance companies of the existence of the waiver and indemnity provisions set
forth in this lease. The provisions of this Article 16 shall survive the expiration or sooner termination of this lease. 

ARTICLE 17.

DAMAGES BY CASUALTY 

        17.1 Tenant
shall give immediate written notice to Landlord of any damage caused to the Demised Premises by fire or other casualty. 

        17.2 In
the event that the Demised Premises shall be damaged or destroyed by fire or other casualty insurable under standard fire and extended coverage insurance and
Landlord does not elect to terminate this lease as hereinafter provided, Landlord shall proceed with reasonable diligence and at its sole cost and expense to rebuild and repair the Demised Premises.
In the event (a) the Building is 

17

 

destroyed
or substantially damaged by a casualty not covered by Landlord's insurance, or (b) such Building is destroyed or rendered untenantable to an extent in excess of fifty percent (50%) of
the first floor area by a casualty covered by Landlord's insurance, or (c) the holder of a mortgage, deed of trust or other lien on such Building at the time of the casualty elects, pursuant to
such mortgage, deed of trust or other lien, to require the use of all or part of Landlord's insurance proceeds in satisfaction of all or part of the indebtedness secured by the mortgage, deed of trust
or other lien, or (d) the Demised Premises shall be damaged to the extent of fifty percent (50%) or more of the cost of replacement, then Landlord may elect either to terminate this lease or to
proceed to rebuild and repair the Demised Premises. Landlord shall give written notice to Tenant of such election within sixty (60) days after the occurrence of such casualty, which notice
shall include Landlord's reasonable estimate of the time needed to substantially restore the Demised Premises ("Landlord's Estimate"), and, if Landlord elects to rebuild and repair, Landlord shall
proceed to do so with reasonable diligence and at its sole cost and expense. Notwithstanding anything to the contrary in this Section 17.2, in the event (i) the Building is destroyed or
rendered untenantable or (ii) the Demised Premises are substantially damaged and the repair of such damage will not (per Landlord's Estimate) be substantially completed within two hundred forty
(240) days of the casualty, then Tenant may elect to terminate this lease without penalty by notice given to Landlord within fifteen (15) days of Tenant's receipt of Landlord's Estimate
(or prior thereto in the event the Demised Premises are destroyed or rendered untenantable). In the event that Landlord should fail to substantially complete such repairs and restoration by the date
set forth in Landlord's Estimate, Tenant may elect to terminate this lease by written notice to Landlord ("Tenant's Termination Notice"), such termination to be effective thirty (30) days after
Landlord's receipt of such notice; provided, however, that if within ten (10) days of Landlord's receipt of Tenant's Termination Notice, Landlord shall notify Tenant that it estimates that such
repairs and material restoration can be completed within thirty (30) days after the original date estimated by Landlord, then Tenant's Termination Notice shall be void and of no further force
and effect. If, however, Landlord does not complete such repairs and material restoration within such thirty (30) day period, Tenant may at its option and as its sole remedy for such delay
terminate this lease by delivering written notice to Landlord, within ten (10) days after the expiration of said period of time, whereupon the lease shall end on the date of such notice or such
later date fixed in such notice as if the date of such notice was the date originally fixed in this lease for the expiration of the term. 

        17.3 Landlord's
obligation to rebuild and repair under this Article 17 shall in any event be limited to restoring the Demised Premises to substantially the condition
in which the same existed prior to such casualty, exclusive of any alterations, additions, improvements, fixtures, signs and equipment installed by Tenant. Tenant agrees that promptly after completion
of such work by Landlord, Tenant will proceed with reasonable diligence and at Tenant's sole cost and expense to restore, repair and replace all alterations, additions, improvements, fixtures, signs
and equipment installed by Tenant. 

        17.4 Tenant
agrees that during any period of reconstruction or repair of the Demised Premises, it will continue the operation of its business within the Demised Premises to
the extent practicable. During the period from the occurrence of the casualty until Landlord's repairs are completed, the minimum guaranteed rental shall be reduced to such extent as may be fair and
reasonable under the circumstances; however, there shall be no abatement of the charges provided for herein. 

        17.5 Tenant
hereby waives the provisions of California Civil Code Sections 1932(2) and 1933(4) and the provisions of any successor or other law of like import 

ARTICLE 18.

EMINENT DOMAIN 

        18.1 If
more than thirty percent (30%) of the floor area of the Demised Premises should be taken for any public or quasi-public use under any governmental law, ordinance or
regulation or by right of eminent domain or by private purchase in lieu thereof, this lease shall terminate and the rent shall be 

18

 

abated
during the unexpired portion of this lease, effective on the date physical possession is taken by the condemning authority. 

        18.2 If
less than thirty percent (30%) of the floor area of the Demised Premises should be taken as aforesaid, this lease shall not terminate; however, the minimum
guaranteed rental payable hereunder during the unexpired portion of this lease shall be reduced in proportion to the area taken, effective on the date physical possession is taken by the condemning
authority. Following such partial taking, Landlord shall make all necessary repairs or alterations to the remaining premises required to make the remaining portions of the Demised Premises an
architectural whole, but in no event shall Landlord be required to expend an amount greater than the award actually received by Landlord in connection with such taking. 

        18.3 If
any part of the Common Area should be taken as aforesaid, this lease shall not terminate, nor shall the rent payable hereunder be reduced, except that either
Landlord or Tenant may terminate this lease if the area of the Common Area remaining following such taking plus any additional parking area provided by Landlord in reasonable proximity to the
Industrial Complex shall be less than seventy percent (70%) of the area of the Common Area immediately prior to the taking. Any election to terminate this lease in accordance with this provision shall
be evidenced by written notice of termination delivered to the other party within thirty (30) days after the date physical possession is taken by the condemning authority. 

        18.4 All
compensation awarded for any taking (or the proceeds of private sale in lieu thereof) of the Demised Premises or Common Area shall be the property of Landlord, and
Tenant hereby assigns its interest in any such award to Landlord; provided, however, Landlord shall have no interest in any award made to Tenant for Tenant's moving and relocation expenses or for the
loss of Tenant's fixtures and other tangible personal property if a separate award for such items is made to Tenant as long as such separate award does not reduce the amount of the award that would
otherwise be awarded to Landlord. 

        18.5 The
rights contained in this Article 18 shall be Tenant's sole and exclusive remedy in the event of a taking or condemnation. Each party waives the provisions of
Sections 1265.130 and 1265.150 of the California Code of Civil Procedure and the provisions of any successor or other law of like import. 

        18.6 Notwithstanding
anything to the contrary, Landlord may terminate this lease with no further liability to Tenant if (i) fifty percent (50%) or more of the gross
leasable area of the Industrial Complex is taken or (ii) if following any taking, Landlord's mortgagee elects to require Landlord to apply all or a portion of such award to the outstanding
indebtedness. 

ARTICLE 19.

ASSIGNMENT AND SUBLETTING 

        19.1 Tenant
shall not assign or in any manner transfer this lease or any estate or interest therein, or sublet the Demised Premises or any part thereof, or grant any
license, concession or other right of occupancy of any portion of the Demised Premises without the prior written consent of Landlord. Landlord agrees that it will not withhold consent in a wholly
unreasonable and arbitrary manner (as further explained in Section 29.4 of this lease); however, in determining whether or not to grant its consent, Landlord shall be entitled to take into
consideration factors such as Landlord's desired tenant mix and the reputation and net worth of the proposed transferee. Further, Landlord shall not be required to consent to any assignment or
sublease that would result in a violation of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). Any purported assignment or sublease that would result in a violation of ERISA
shall be void and of no effect. Landlord shall be entitled to charge Tenant a reasonable fee for processing Tenant's request. Consent by Landlord to one or more assignments or sublettings shall not
operate as a waiver of Landlord's rights as to any subsequent assignments and sublettings. In all events, Landlord can refuse to consent to an assignment 

19

 

or
sublease if there shall exist any uncured default of Tenant or a matter which will become a default with the passage of time. 

        19.2 If
Tenant is a corporation, partnership or other entity and if at any time during the term of this lease the person or persons who own a majority of either the
outstanding voting rights or the outstanding ownership interests of Tenant at the time of the execution of this lease cease to own a majority of such voting rights or ownership interests (except as a
result of transfers by devise or descent), the loss of a majority of such voting rights or ownership interests shall be deemed an assignment of this lease by Tenant and, therefore, subject in all
respects to the provisions of Section 19.1 above. The previous sentence shall not apply, however, if at the time of the execution of this lease, Tenant is a corporation and the outstanding
voting shares of capital stock of Tenant are listed on a recognized security exchange or over-the-counter market. Furthermore, the disposition and acquisition of shares in the
initial public offering of the stock of the Tenant originally named herein, or the private placement of the stock of the Tenant originally named herein in connection with equity financing purposes
only, shall not be deemed a violation of the terms of this Section 19.2. 

        19.3 Notwithstanding
anything to the contrary contained herein, and without prejudice to Landlord's right to require a written assumption from each assignee, any person or
entity to whom this lease is assigned including, without limitation, assignees pursuant to the provisions of the Bankruptcy Code, 11 U.S.C. Paragraph 101, et
seq. (the "Bankruptcy Code"), shall automatically be deemed, by acceptance of such assignment or sublease or by taking actual or constructive possession of the Demised
Premises, to have assumed all obligations of Tenant arising under this lease effective as of the earlier of the date of such assignment or sublease or the date on which the assignee or sublessee
obtains possession of the Demised Premises. In the event this lease is assigned to any person or entity pursuant to the provisions of the Bankruptcy Code, any and all monies or other consideration
payable or otherwise to be delivered in connection with such assignment shall be paid or delivered to Landlord and shall remain the exclusive property of Landlord and not constitute the property of
Tenant or Tenant's estate within the meaning of the Bankruptcy Code. All such money or other consideration not paid or delivered to Landlord shall be held in trust for the benefit of Landlord and
shall be promptly paid or delivered to Landlord. 

20

   
        19.4 Notwithstanding any assignment or subletting, Tenant and any guarantor of Tenant's obligations under this lease shall at all times remain fully responsible and liable
for the payment of the rent herein specified and for compliance with all of its other obligations under this lease (even if future assignments and sub-lettings occur subsequent to the
assignment or subletting by Tenant, and regardless of whether or not Tenant's approval has been obtained for such future assignments and sublettings). Moreover, in the event that the rental due and
payable by a sublessee (or a combination of the rental payable under such sublease plus any bonus or other consideration therefor or incident thereto) exceeds the rental payable under this lease, or
if with respect to a permitted assignment, permitted license or other transfer by Tenant permitted by Landlord, the consideration payable to Tenant by the assignee, licensee or other transferee
exceeds the rental payable under this lease, then Tenant shall be bound and obligated to pay Landlord all such excess rental and other excess consideration within ten (10) days following
receipt thereof by Tenant from such sublessee, assignee, licensee or other transferee, as the case may be. Finally, in the event of an assignment or subletting, it is understood and agreed that all
rentals paid to Tenant by an assignee or sublessee shall be received by Tenant in trust for Landlord, to be forwarded immediately to Landlord without offset or reduction of any kind; and upon election
by Landlord such rentals shall be paid directly to Landlord as specified in Section 4.2 of this lease (to be applied as a credit and offset to Tenant's rental obligation). 

        19.5 Tenant
shall not mortgage, pledge or otherwise encumber its interest in this lease or in the Demised Premises. 

        19.6 In
the event of the transfer and assignment by Landlord of its interest in this lease and in the Building to a person expressly assuming Landlord's obligations under
this lease, Landlord shall thereby be released from any further obligations hereunder, and Tenant agrees to look solely to such successor in interest of the Landlord for performance of such
obligations. Any security given by Tenant to secure performance of Tenant's obligations hereunder may be assigned and transferred by Landlord to such successor in interest and Landlord shall thereby
be discharged of any further obligation relating thereto. 

        19.7 Notwithstanding
anything to the contrary contained herein, Landlord shall have the option, in its sole discretion, in the event of any proposed subletting or
assignment, to terminate this lease, or in the case of a proposed subletting of less than the entire Demised Premises for substantially all of the remaining term of this lease, to recapture the
portion of the Demised Premises to be sublet, as of the date the subletting or assignment is to be effective. The option shall be exercised by Landlord giving Tenant written notice within twenty
(20) days following Landlord's receipt of Tenant's written notice as required above. If this lease shall be terminated with respect to the entire Demised Premises, the term shall end on the
date stated in Tenant's notice as the effective date of the sublease or assignment as if that date had been originally fixed in this lease for the expiration of the term. If Landlord recaptures only a
portion of the Demised Premises (in the event of a proposed subletting of less than the entire Demised Premises as above described), the minimum guaranteed rental during the unexpired term shall
abate, proportionately, based on the minimum guaranteed rental due as of the date immediately prior to such recapture. 

        19.8 Tenant
hereby waives any suretyship defenses it may now or hereafter have to an action brought by Landlord including those contained in Sections 2787 through 2856,
inclusive, 2899 and 3433 of the California Civil Code, as now or hereafter amended, or similar laws of like import. 

ARTICLE 20.

SUBORDINATION; ATTORNMENT; ESTOPPELS 

        20.1 Tenant
accepts this lease subject and subordinate to any mortgage, deed of trust or other lien presently existing or hereafter placed upon the Industrial Complex or any
portion of the Industrial Complex which includes the Demised Premises, and to any renewals, modifications and extensions 

21

 

thereof
and this subordination shall be self operative and no further instrument of subordination is needed. Tenant agrees that any mortgagee shall have the right at any time to subordinate its
mortgage, deed of trust or other lien to this lease; provided, however, notwithstanding that this lease may be (or is made to be) superior to a mortgage, deed of trust or other lien, the mortgagee
shall not be liable for prepaid rentals, security deposits and claims accruing during or with respect to Landlord's ownership, any amendment or modification made to this lease without its prior
written consent or any offsets or claims against Landlord; further provided that the provisions of a mortgage, deed of trust or other lien relative to the right of the mortgagee with respect to
proceeds arising from an eminent domain taking (including a voluntary conveyance by Landlord) and provisions relative to proceeds arising from insurance payable by reason of damage to or destruction
of the Demised Premises shall be prior and superior to any contrary provisions contained in this instrument with respect to the payment or usage thereof. Landlord is hereby irrevocably vested with
full power and authority to subordinate this lease to any mortgage, deed of trust or other lien hereafter placed upon the Demised Premises or the Industrial Complex as a whole, and Tenant agrees upon
demand to execute such further instruments subordinating this lease as Landlord may request. If the holder of any mortgage, indenture or deed of trust or similar instrument (each a "Mortgagee")
succeeds to Landlord's interest in the Demised Premises, Tenant shall, upon request of any such Mortgagee, automatically become the tenant of and attorn to and recognize such Mortgagee as the landlord
under this lease and will pay to it all rents and other amounts payable by Tenant under this lease, in accordance with the applicable terms of this lease. Notwithstanding that the foregoing provisions
of this Section are self-operative, upon request of Landlord or any Mortgagee, Tenant shall execute and deliver to Landlord and to such Mortgagee a subordination and attornment agreement
in recordable form confirming the foregoing and otherwise in form and substance acceptable to Landlord and such Mortgagee. 

        20.2 Tenant
may not exercise any remedies for default by Landlord hereunder unless and until Landlord and the holder(s) of any indebtedness secured by mortgage, deed of
trust or other lien on the Demised Premises shall have received written notice of such default and a reasonable time (not less than 60 days) shall thereafter have elapsed without the default
having been cured. 

        20.3 Tenant
agrees that it will from time to time, within seven (7) days of receipt of written request from Landlord, execute and deliver to Landlord a written
statement addressed to Landlord (and to such other parties as may be designated by Landlord), which statement shall identify Tenant and this lease, shall certify that this lease is unmodified and in
full force and effect (or if there have been modifications, that the same is in full force and effect as so modified), shall confirm that Landlord is not in default as to any obligations of Landlord
under this lease (or if Landlord is in default, specifying any default), shall confirm Tenant's agreements contained above in this Article 20, and shall contain such other information or
confirmations as Landlord may reasonably require. Landlord is hereby irrevocably appointed and authorized as the agent and attorney-in-fact of Tenant to execute and deliver any
such written statement on Tenant's behalf if Tenant fails to do so within seven (7) days after Tenant's receipt of a written request from Landlord to Tenant. 

ARTICLE 21.

TENANT'S INDEMNIFICATION 

        21.1 Tenant
shall indemnify, defend and hold harmless Landlord, Landlord's asset manager, Landlord's subasset manager, Landlord's partners, any subsidiary or affiliate of
Landlord and the officers, directors, shareholders, partners, employees, managers, independent contractors, attorneys and agents of any of the foregoing (collectively, the "Indemnitees") from and
against any and all claims, demands, causes of action, judgments, costs and expenses, and all losses and damages (including consequential and punitive damages) arising from Tenant's use of the Demised
Premises or from the conduct of its business or from any activity, work, or other acts or things done, permitted or suffered by Tenant in or about the Demised Premises, and shall further indemnify,
defend and hold harmless the 

22

 

Indemnitees
from and against any and all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this lease, or arising from
any act, omission or negligence or willful or criminal misconduct of Tenant, or any officer, agent, employee, independent contractor, guest, or invitee thereof, and from all costs, attorneys' fees and
disbursements, and liabilities incurred in the defense of any such claim or any action or proceeding which may be brought against, out of or in any way related to this lease. Upon notice from
Landlord, Tenant shall defend any such claim, demand, cause of action or suit at Tenant's expense by counsel satisfactory to Landlord in its sole discretion. As a material part of the consideration to
Landlord for this lease, Tenant hereby assumes all risk of damage to property or injury to persons in, upon or about the Demised Premises from any cause, and Tenant hereby waives all claims with
respect thereto against landlord. Tenant shall give immediate notice to Landlord in case of casualty or accidents in the Demised Premises. The provisions of this Article 21 shall survive the
expiration or sooner termination of this lease. 

        21.2 All
personal property of Tenant, including goods, wares, merchandise, inventory, trade fixtures and other personal property of Tenant, shall be stored at the sole risk
of Tenant. Landlord or its agents shall not be liable for any loss or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may
leak from any part of the Industrial Complex or from the pipes, appliances or plumbing works therein or from the roof, street or subsurface or from any other places resulting from dampness or any
other cause whatsoever, or from the act or negligence of any other tenant or any officer, agent, employee, contractor or guest of any such tenant, except personal injury caused by or due to the gross
negligence or willful misconduct of Landlord. Landlord or its agents shall not be liable for interference with the electrical service, ventilation, or for any latent defect in the Demised Premises. 

        21.3 The
parties hereto acknowledge that all or a part of the Demised Premises may be used for the storage and shipment of goods not owned by Tenant, and Landlord is not
willing to enter into this lease unless Tenant indemnifies the Indemnitees to Landlord's satisfaction from any liability on the part of the Indemnitees to the owner(s) of such goods for damage to the
same arising out of any acts or omissions of the Indemnitees. As a material inducement to Landlord to enter into this lease, Tenant agrees to defend, indemnify and hold the Indemnitees harmless from
and against any and all losses, claims, liabilities, obligations and damages imposed upon or incurred or asserted against the Indemnitees by reason of damage to goods of persons storing such goods
with Tenant, notwithstanding the fact that such losses, claims, liabilities, obligations or damages may have been caused by the acts or omissions of Landlord. Tenant agrees that at all times during
which it shall store goods not owned by it in the Demised Premises, it shall insure the indemnity described under this Section 21.3 in a manner reasonably satisfactory to Landlord. Landlord
shall not be deemed a bailee, consignee, or warehouseman (or responsible for the standard of care incidental thereto) with respect to any goods stored or shipped to or from the Demised Premises for
consignment or bailment and Tenant shall insert a cause to that effect in all warehouse receipts or consignment agreements for the storage or shipment of goods to or from the Demised Premises. 

ARTICLE 22.

DEFAULT BY TENANT AND REMEDIES 

        22.1 The
following events shall be deemed to be events of default by Tenant under this lease: 

        (a)   Tenant
shall fail to pay any installment of rental or any other obligation under this lease involving the payment of money and such failure shall continue for a period
of five (5) days after written notice thereof to Tenant; provided, however, that for each calendar year during which Landlord has already given Tenant one (1) written notice of the
failure to pay an installment of rental, no further notice shall be required (i.e., the event of default will automatically occur on the fifth (5th) day after the day upon which the
rental was due); and provided further that any such 

23

 

notice
shall be in lieu of, and not in addition to, any notice required under Section 1161, et seq. of the California Code of Civil Procedure. 

        (b)   Tenant
shall fail to comply with any provision of this lease, other than as described in Section 22.1(a) above, and either (i) shall not cure such failure
within fifteen (15) days after written notice thereof to Tenant (or if the noncompliance cannot by its nature be cured within the 15-day period, if Tenant fails to commence to cure
such noncompliance within the 15-day period and thereafter diligently prosecute such cure to completion), or (ii) shall cure that particular failure but shall again fail to comply
with the same provision of this lease within three (3) months after Landlord's written notice; provided, however, that any such notice shall be in lieu of, and not in addition to, any notice
required under Section 1161 et seq of the California Code of Civil Procedure. 

        (c)   Tenant
or any guarantor of Tenant's obligations under this lease shall become insolvent, or shall make a transfer in fraud of creditors, or shall make an assignment for
the benefit of creditors. 

        (d)   Tenant
or any guarantor of Tenant's obligations under this lease shall file a petition under any section or chapter of the federal Bankruptcy Code, as amended, or
under any similar law or statute of the United States or any state thereof; or Tenant or any guarantor of Tenant's obligations under this lease shall be adjudged bankrupt or insolvent in proceedings
filed against Tenant or any guarantor of Tenant's obligations under this lease thereunder. 

        (e)   A
receiver or Trustee shall be appointed for the Demised Premises (expressly excluding a receiver appointed for the Industrial Complex or any portion thereof because of
a default by Landlord in any of its obligations with respect to the Industrial Complex or any loan encumbering same) or for all or substantially all of the assets of Tenant or any guarantor of Tenants
obligations under this lease. 

        (f)    Tenant
shall desert or vacate or shall commence to desert or vacate the Demised Premises or any substantial portion of the Demised Premises or at any time prior to the
last month of the lease term shall remove or attempt to remove, without the prior written consent of Landlord, all or a substantial amount of Tenant's goods, wares, equipment, fixtures, furniture, or
other personal property. 

        (g)   Tenant
shall do or permit to be done anything which creates a lien upon the Demised Premises or upon all or any part of the Industrial Complex and Tenant shall have
failed to release such lien of record by payment or by recording a proper bond by the date which is ten (10) days after written notice to Tenant of the imposition of such lien. 

        (h)   Any
transfer of a substantial portion of the assets of Tenant, or any incurrence of a material obligation by Tenant, unless such transfer or obligation is undertaken or
incurred in the ordinary course of Tenant's business or in good faith for equivalent consideration, or with Landlord's consent. 

        (i)    The
default of any guarantors of Tenant's obligations hereunder under any guaranty of this lease, or the attempted repudiation or revocation of any such guaranty. 

        22.2 Upon
the occurrence of any such event of default, Landlord shall have the option to pursue any one or more of the following remedies to the extent permitted by law: 

        (a)   Without
any further notice or demand whatsoever, Tenant shall be obligated to reimburse Landlord for the damages suffered by Landlord as a result of the event of
default, plus interest on such amount at the maximum contractual rate which could legally be charged in the event of a loan of such amount to Tenant (but in no event to exceed 11/2% per
month); and Landlord may pursue a monetary recovery from Tenant. 

24

 

        (b)   Without
any further notice or demand whatsoever, Landlord may take any one or more of the actions permissible at law to insure performance by Tenant of Tenant's
covenants and obligations under this lease. In this regard, and without limiting the generality of the immediately preceding sentence, it is agreed that if Tenant fails to open for business as
required in this lease or, having opened for business, deserts or vacates the Demised Premises, Landlord may enter upon and take possession of such premises in order to protect them from deterioration
and continue to demand from Tenant the monthly rentals and other charges provided in this lease, without any obligation to relet; however, if Landlord does, at its sole discretion, elect to relet the
Demised Premises, such action by Landlord shall not be deemed an acceptance of Tenant's surrender of the Demised Premises unless Landlord expressly notifies Tenant of such acceptance in writing
pursuant to this Section 22.2(b), Tenant hereby acknowledging that Landlord shall otherwise be reletting as Tenant's agent and Tenant furthermore hereby agreeing to pay to Landlord on demand
any deficiency that may arise between the monthly rentals and other charges provided in this lease and that actually collected by Landlord. In the event that Landlord shall elect to relet, then
rentals received by Landlord from such reletting shall be applied: first, to the payment of any indebtedness (other than rent) due hereunder from Tenant to Landlord; second, to the payment of any cost
of such reletting (including brokerage commissions); third, to the payment of the cost of any alterations and repairs to the Demised Premises; fourth, to the payment of rent due and unpaid hereunder;
and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder. Should reletting, during any month to which such rent is
applied, result in the actual payment of rentals at less than the rent payable during that month by Tenant hereunder, then Tenant shall pay such deficiency to Landlord immediately upon demand therefor
by Landlord. Such deficiency shall be calculated and paid monthly. Tenant shall also pay to Landlord as soon as ascertained, any costs and expenses incurred by Landlord in such reletting or in making
such alterations and repairs not covered by the rentals received from such reletting. Finally, it is agreed that in the event of any default described in Section 22.1(g) of this lease, Landlord
may pay or bond around such lien, whether or not contested by Tenant; and in such event Tenant agrees to reimburse Landlord on demand for all costs and expenses incurred in connection with any such
action, with Tenant further agreeing that Landlord shall in no event be liable for any damages or claims resulting from such action. No action or inaction by Landlord including, without limitation,
the re-entry or taking of possession of the Demised Premises by Landlord pursuant to this Section 22.2(b) shall be construed as an election to terminate this lease or as
interference with Tenant's rights of possession, assignment or subletting unless a written notice of such election shall be given to Tenant or unless the termination thereof be decreed by a court of
competent jurisdiction. Notwithstanding any reletting without termination by Landlord, Landlord may, at any time after such reletting, elect to terminate this lease for any such default. 

        (c)   Landlord
may terminate this lease by written notice to Tenant, in which event Tenant shall immediately surrender the Demised Premises to Landlord. In the event that
Landlord shall elect to so terminate this lease, then Landlord may recover from Tenant: 

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

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

        (iii)  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 reasonably could be avoided; plus 

25

 

        (iv)  Any
other amount necessary to compensate Landlord for all detriment proximately caused by Tenant's failure to perform its obligations under this lease or which in the
ordinary course would be likely to result therefrom, plus 

        (v)   At
Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable California law. 

As
used in subparagraphs (i) and (ii) above, the "worth at the time of award" is computed by allowing interest at the maximum rate permitted by law. As used in subparagraph
(iii) 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%). 

Forbearance
by Landlord to enforce one or more of the remedies herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such default Tenant hereby waives for
Tenant and for all those claiming under Tenant all right now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ, Tenant's right of occupancy of the
Demised Premises after any termination of this lease. 

        (d)   In
addition to all other rights and remedies provided Landlord in this lease and by law, Landlord shall have the remedy described in California Civil Code
Section 1951.4 (Landlord may continue the lease in effect after Tenant's breach and abandonment and recover rent as it becomes due if Tenant has the right to sublet or assign the lease, subject
to reasonable limitations). 

        22.3 It
is expressly agreed that in determining "the unpaid rent" as that term is used throughout Sections 2.22(c)(i) and 22.2(c)(ii) above, there shall be
added to the minimum guaranteed rental (as specified in Section 1.1(l) of this lease) a sum equal to the charges for maintenance of the Common Area (as specified in Section 7.4 of this
lease), and the payments for taxes, charges and insurance (as specified in Article 6 of this Lease). 

        22.4 It
is further agreed that, in addition to payments required pursuant to Sections 22.2(b) and 22.2(c) above, Tenant shall compensate Landlord for all expenses incurred
by Landlord in repossession (including, among other expenses, any increase in insurance premiums caused by the vacancy of the Demised Premises), all expenses incurred by Landlord in reletting
(including, among other expenses, repairs, remodeling, replacements, advertisements and brokerage fees), all concessions granted to a new tenant upon reletting (including, among other concessions,
renewal options), all losses incurred by Landlord as a direct or indirect result of Tenant's default (including, among other losses, any adverse reaction by Landlord's mortgagee or by other tenants or
potential tenants of the Industrial Complex) and a reasonable allowance for Landlord's administrative efforts, salaries and overhead attributable directly or indirectly to Tenant's default and
Landlord's pursuing the rights and remedies provided herein and under applicable law. 

        22.5 Landlord
may restrain or enjoin any breach or threatened breach of any covenant, duty or obligation of Tenant herein contained without the necessity of proving the
inadequacy of any legal remedy or irreparable harm. The remedies of Landlord hereunder shall be deemed cumulative and not exclusive of each other. 

        22.6 If
on account of any breach or default by Tenant in its obligations hereunder, Landlord shall employ an attorney to present, enforce or defend any of Landlord's rights
or remedies hereunder, Tenant agrees to pay any reasonable attorneys' fees incurred by Landlord in such connection. 

        22.7 Intentionally
deleted. 

        22.8 In
the event of any default described in Section 22.1(d) of this lease, any assumption and assignment must conform with the requirements of the Bankruptcy Code
and, in order to provide Landlord with the assurances contemplated by the Bankruptcy Code, Tenant must fulfill the following 

26

 

obligations,
in addition to any other reasonable obligations that Landlord may require, before any assumption of this lease is effective: (i) all defaults under Section 22.1(a) of this
lease must be cured within ten (10) days after the date of assumption; (ii) all other defaults under Section 22.1 of this lease other than under Section 22.1(d) must be
cured within fifteen (15) days after the date of assumption; (iii) all actual monetary losses incurred by Landlord (including, but not limited to, reasonable attorneys' fees) must be
paid to Landlord within ten (10) days after the date of assumption; and (iv) Landlord must receive within ten (10) days after the date of assumption a security deposit in the
amount of six (6) months minimum guaranteed rent (using the minimum guaranteed rent in effect for the first full month immediately following the assumption) and an advance prepayment of minimum
guaranteed rent in the amount of three (3) months minimum guaranteed rent (using the minimum guaranteed rent in effect for the first full month immediately following the assumption), both sums
to be held by Landlord in accordance with Section 22.7 above and deemed to be rent under this lease for the purposes of the Bankruptcy Code as amended and from time to time in effect. 

        (a)   In
the event this lease is assumed in accordance with the requirements of the Bankruptcy Code and this lease, and is subsequently assigned, then, in addition to any
other reasonable obligations that Landlord may require and in order to provide Landlord with the assurances contemplated by the Bankruptcy Code, Landlord shall be provided with (i) a financial
statement of the proposed assignee prepared in accordance with generally accepted accounting principles consistently applied, though on a cash basis, which reveals a net worth in an amount sufficient,
in Landlord's reasonable judgment, to assure the future performance by the proposed assignee of Tenant's obligations under this lease; or (ii) a written guaranty by one or more guarantors with
financial ability sufficient to assure the future performance of Tenant's obligations under this lease, such guaranty to be in form and content satisfactory to Landlord and to cover the performance of
all of Tenant's obligations under this lease. 

ARTICLE 23.

INTENTIONALLY DELETED 

ARTICLE 24.

HOLDING OVER 

        24.1 In
the event Tenant remains in possession of the Demised Premises after the expiration of this lease and without the execution of a new lease or an amendment hereto, it
shall be deemed to be occupying said premises as a tenant from month to month at a rental equal to the rental herein provided plus one hundred percent (100%) of such amount and otherwise subject to
all the conditions, provisions and obligations of this lease insofar as the same are applicable to a month-to-month tenancy. Notwithstanding the foregoing, so tong as Landlord
does not have a letter of intent under negotiation (or executed) for some or all of the Demised Premises with a bona fide third party replacement tenant which desires occupancy or access to make
tenant improvements during the holdover period, Tenant's holdover rent for the first month following the term expiration date shall be set at a rental equal to the rental herein provided plus fifty
percent (50%) of such amount, and Tenant's holdover rent for the second month following the term expiration date shall be set at a rental equal to the rental herein provided plus
seventy-five percent (75%) of such amount, in each case subject to all the conditions, provisions and obligations of this lease insofar as the same are applicable to a
month-to-month tenancy. Neither any provision hereof nor acceptance by Landlord of rent after such expiration or earlier termination shall be deemed a consent to a holdover
hereunder or result in a renewal of this lease or an extension of the term. Notwithstanding any provision to the contrary contained herein, (i) Landlord expressly reserves the right to require
Tenant to surrender possession of the Demised Premises upon the expiration of the term of this lease or upon the earlier termination hereof, the right to reenter the Demised Premises, and the right to
assert any remedy at law or in equity to evict Tenant and collect 

27

 

damages
in connection with any such holding over, and (ii) Tenant shall indemnify, defend and hold Landlord harmless from and against any and all claims, demands, actions, losses, damages,
obligations, costs and expenses, including, without limitation, attorneys' fees incurred or suffered by Landlord by reason of Tenant's failure to surrender the Demised Premises on the expiration or
earlier termination of this lease in accordance with the provisions of this lease. 

ARTICLE 25.

NOTICES 

        25.1 Wherever
any notice is required or permitted hereunder, such notice shall be in writing. Any notice or document required or permitted to be delivered hereunder shall be
deemed to be delivered when actually received by the designated addressee or, if earlier and regardless of whether actually received or not, when deposited in the United States mail, postage prepaid,
certified mail, return receipt requested, addressed to the parties hereto at the respective addresses set out in Section 1.1 above (or at Landlord's option, to Tenant at the Demised Premises),
or at such other addresses as they have theretofore specified by written notice. 

        25.2 If
and when included within the term "Landlord" as used in this instrument there are more than one person, firm or corporation, all shall jointly arrange among
themselves for their joint execution of such a notice specifying some individual at some specific address for the receipt of notices and payments to Landlord; if and when included within the term
"Tenant" as used in this instrument there are more than one person, firm or corporation, all shall jointly arrange among themselves for their joint execution of such a notice specifying some
individual at some specific address for the receipt of notices and payments to Tenant. All parties included within the terms "Landlord" and "Tenant," respectively, shall be bound by notice and
payments given in accordance with the provisions of this Article to the same effect as if each had received such notice or payment. In addition, Tenant agrees that actions by Landlord and notices to
Tenant hereunder may be taken or given by Agent, Landlord's attorney, or any other property manager or agent. 

        25.3 A
copy of any notice or document required or permitted to be delivered hereunder to Landlord shall simultaneously be delivered to Agent. 

ARTICLE 26.

COMMISSIONS 

        26.1 Tenant
and Landlord warrant that they have had no dealings with any broker or agent in connection with this lease, other than Agent and Tenant's Broker, whose
commissions shall be paid by Landlord. Landlord and Tenant covenant to pay, hold harmless and indemnify each other from and against any and all cost, expense or liability for any compensation,
commissions or charges claimed by any other broker or agent utilized by the indemnitor with respect to this lease or the negotiation hereof: 

ARTICLE 27.

REGULATIONS 

        27.1 Landlord
and Tenant acknowledge that there are now in effect and may hereafter be enacted or go into effect federal, state, county and municipal laws, orders, rules,
directives and regulations relating to or affecting the Demised Premises or the Industrial Complex, concerning the impact on the environment of construction, land use, maintenance and operation of
structures, toxic or otherwise hazardous substances, and the conduct of business, including, without limitation, the Americans With Disabilities Act of 1990 and the Clean Air Act and regulations
issued thereunder (all of the foregoing, as amended from time to time, being herein called the "Regulations"). Tenant will not cause or permit to be caused, any act or practice, by negligence,
omission or otherwise, that would adversely affect the 

28

 

environment
or do anything or permit anything to be done that would violate any of said Regulations. Moreover, Tenant shall have no claim against Landlord by reason of any changes Landlord may make in
the Industrial Complex or the Demised Premises pursuant to said Regulations or any charges imposed upon Tenant, Tenant's customers or other invitees pursuant to same. As a material part of the
consideration to Landlord for this lease, Tenant acknowledges that Landlord shall have no liability to Tenant to the extent Landlord, acting in good faith, complies with any governmental law,
regulation or order, including without limitation the USA Patriot's Act (also known as the "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001"). 

        27.2 If,
by reason of any Regulations, the payment to, or collection by, Landlord of any rental or other charge (collectively referred to hereinafter as "Lease Payments")
payable by Tenant to Landlord pursuant to the provisions of this lease is in excess of the amount (the "Maximum Charge") permitted by the Regulations, then Tenant, during the period (the "Freeze
Period") when the Regulations shall be in force and effect shall not be required to pay, nor shall Landlord be permitted to collect, any sum in excess of the Maximum Charge. Upon the earlier of
(i) the expiration of the Freeze Period, or (ii) the issuance of a final order or judgment of a court of competent jurisdiction declaring the Regulations to be invalid or not applicable
to the provisions of this lease, Tenant, to the extent not then prescribed by law, and commencing with the first day of the month immediately following, shall pay to Landlord as additional rental, in
equal monthly installments during the balance of the term of this lease, a sum equal to the cumulative difference between the Maximum Charges and the Lease Payments during the Freeze Period. If any
provisions of this Section, or the application thereof, shall to any extent be declared to be invalid and unenforceable, the same shall not be deemed to affect any of the other provisions of this
Section or of this lease, all of which shall be deemed valid and enforceable to the fullest extent permitted by law. 

29

   
        27.3 Tenant acknowledges that it will be wholly responsible for any accommodations or alterations which need to be made to the Demised Premises to accommodate disabled
employees and customers of Tenant, including without limitation, the requirements under the Americans With Disabilities Act of 1990 and any equivalent California law. Any alterations made to the
Demised Premises in order to comply with either statute must be made solely at Tenant's expense and in compliance with any terms and requirements of this lease. Landlord agrees to make reasonable
efforts to ensure that the Common Area is in compliance with the applicable disability access laws as of the date hereof. If a complaint is received by Landlord from either a private or government
source regarding disability access to the Common Area of the Industrial Complex, Landlord reserves the right to mediate, contest, comply with or otherwise respond to such complaint as Landlord deems
to be reasonably prudent under the circumstances. If Landlord decides to make alterations to the Common Area of the Industrial Complex in response to any such complaints or in response to legal
requirements Landlord considers to be applicable to the Common Area of the Industrial Complex, the cost of such alterations shall be included in the Common Area maintenance charge under this lease.
Landlord and Tenant agree that so long as the governmental entity or entities charged with enforcing such statutes have not expressly required Landlord to take specific action to effectuate compliance
with such statutes, Landlord shall be conclusively deemed to be in compliance with such statutes. Tenant agrees to provide Landlord with written notice should Tenant become aware of a violation of
such statutes with respect to the Common Area. In the event Landlord is required to take action to effectuate compliance with such statutes, Landlord shall have a reasonable period of time to make the
improvements and alterations necessary to effectuate such compliance, which period of time shall be extended by any time necessary to cause any necessary improvements and alterations to be made. 

ARTICLE 28.

HAZARDOUS MATERIALS 

        28.1 During
the term of this lease, Tenant shall comply with all Environmental Laws and Environmental Permits (each as defined in Section 28.7 hereof) applicable to
the operation or use of the Demised Premises, will cause all other persons occupying or using the Demised Premises to comply with all such Environmental Laws and Environmental Permits, will
immediately pay or cause to be paid all costs and expenses incurred by reason of such compliance, and will obtain and renew all Environmental Permits required for the operation or use of the Demised
Premises. 

        28.2 Tenant
shall not generate, use, treat, store, handle, release or dispose of, or permit the generation, use, treatment, storage, handling, release or disposal of
Hazardous Materials (as defined in Section 28.7 hereof) on the Demised Premises, or the Industrial Complex, or transport or permit the transportation of Hazardous Materials to or from the
Demised Premises or the Industrial Complex except for limited quantities used or stored at the Demised Premises and required in connection with the routine operation and maintenance of the Demised
Premises, and then only upon the written consent of Landlord and in compliance with all applicable Environmental Laws and Environmental Permits. 

        28.3 At
any time and from time to time during the term of this lease, Landlord may perform an environmental site assessment report concerning the Demised Premises, prepared
by an environmental consulting firm chosen by Landlord, indicating the presence or absence of Hazardous Materials caused or permitted by Tenant and the potential cost of any compliance, removal or
remedial action in connection with any such Hazardous Materials on the Demised Premises. Tenant shall grant and hereby grants to Landlord and its agents access to the Demised Premises and specifically
grants Landlord an irrevocable non-exclusive license to undertake such an assessment. The cost of any such environmental site assessment shall be borne by Landlord unless
(i) Landlord initiates same based on Landlord's reasonable belief that Tenant has caused or permitted a Hazardous Materials problem on or at the Demised Premises, (ii) the results of
such assessment indicate that Tenant has caused or permitted a 

30

 

Hazardous
Materials problem on or at the Demised Premises, or (iii) such assessment is initiated by Landlord incident to the occurrence of an event of default by Tenant under this
Article 28. If Tenant shall be held responsible for the costs of the assessment as above described, Tenant shall promptly pay Landlord for the reasonable costs of such assessment on demand. 

        28.4 Tenant
will immediately advise Landlord in writing of any of the following: (1) any pending or threatened Environmental Claim (as defined in Section 28.7
hereof) against Tenant relating to the Demised Premises or the Industrial Complex; (2) any condition or occurrence on the Demised Premises or the Industrial Complex that (a) results in
noncompliance by Tenant with any applicable Environmental Law, or (b) could reasonably be anticipated to form the basis of an Environmental Claim against Tenant or Landlord or the Demised
Premises; (3) any condition or occurrence on the Demised Premises or any property adjoining the Demised Premises that could reasonably be anticipated to cause the Demised Premises to be subject
to any restrictions on the ownership, occupancy, use or transferability of the Demised Premises under any Environmental Law; and (4) the actual or anticipated taking of any removal or remedial
action by Tenant in response to the actual or alleged presence of any Hazardous Material on the Demised Premises or the Industrial Complex. All such notices shall describe in reasonable detail the
nature of the claim, investigation, condition, occurrence or removal or remedial action and Tenant's response thereto. In addition, Tenant will provide Landlord with copies of all communications
regarding the Demised Premises with any government or governmental agency relating to Environmental Laws, all such communications with any person relating to Environmental Claims, and such detailed
reports of any such Environmental Claim as may reasonably be requested by Landlord. 

        28.5 Tenant
will not change or permit to be changed the present use of the Demised Premises unless Tenant shall have notified Landlord thereof in writing and Landlord shall
have determined, in its sole and absolute discretion, that such change will not result in the presence of Hazardous Materials on the Demised Premises except for those described in Section 28.2
above. 

        28.6 Tenant
agrees to defend, indemnify and hold harmless the Indemnitees (as defined in Section 21.1) from and against all obligations (including removal and
remedial actions), losses, claims, suits, judgments, liabilities, penalties, damages (including consequential and punitive damages), costs and expenses (including attorneys' and consultants' fees and
expenses) of any kind or nature whatsoever that may at any time be incurred by, imposed on or asserted against such Indemnitees directly or indirectly based on, or arising or resulting from
(a) the actual or alleged presence of Hazardous Materials on the Industrial Complex which is caused or permitted by Tenant and (b) any Environmental Claim relating in any way to Tenant's
operation or use of the Demised Premises (the "Hazardous Materials Indemnified Matters"). The provisions of this Article 28 shall survive the expiration or sooner termination of this lease. 

        (a)   To
the extent that the undertaking in the preceding paragraph may be unenforceable because it is violative of any law or public policy, Tenant will contribute the
maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Hazardous Materials Indemnified Matters incurred by the Indemnitees. 

        (b)   All
sums paid and costs incurred by Landlord with respect to any Hazardous Materials Indemnified Matter shall bear interest at the lesser of (i) eighteen (18%)
percent per annum, or (ii) the maximum legal rate of interest allowed in the State of California, from the date so paid or incurred until reimbursed by Tenant, and all such sums and costs shall
be immediately due and payable on demand. 

        28.7 (a)
"Hazardous Materials" means (i) petroleum or petroleum products, natural or synthetic gas, asbestos in any form that is or could become friable, urea
formaldehyde foam insulation, and radon gas; (ii) any substances defined as or included in the definition of "hazardous substances," "hazardous wastes," "hazardous materials," "extremely
hazardous wastes," "restricted hazardous 

31

 

wastes,"
"toxic substances, "toxic pollutants," "contaminants" or "pollutants," or words of similar import, under any applicable Environmental Law; and (iii) any other substance exposure to
which is regulated by any governmental authority; (b) "Environmental Law" means any federal, state or local statute, law, rule, regulation, ordinance, code, policy or rule of common law now or
hereafter in effect and in each case as amended, and any judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, relating to the
environment, health, safety or Hazardous Materials, including without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C.
§§ 9601 et seq; the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et
seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §§ 1801 et seq.; the Clean Water Act, 33
U.S.C. §§ 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et
seq.; the Clean Air Act, 42 U.S.C. §§ 7401 et seq.; the Safe Drinking Water Act, 42 U.S.C.
§§ 300f et seq.; the Atomic Energy Act, 42 U.S.C. §§ 2011 et
seq.; the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §§ 136 et seq.; and the
Occupational Safety and Health Act, 29 U.S.C. §§ 651 et seq.; (c) "Environmental Claims" means any and all
administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of non-compliance or violation, investigations, proceedings, consent orders or
consent agreements relating in any way to any Environmental Law or any Environmental Permit, including without limitation (i) any and all Environmental Claims by governmental or regulatory
authorities for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any applicable Environmental Law and (ii) any and all Environmental Claims by any third
party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to health,
safety or the environment; and (d) "Environmental Permits" means all permits, approvals, identification numbers, licenses and other authorizations required under any applicable Environmental
Law. 

        28.8 In
no event shall Tenant be liable for any costs, losses or claims due to the presence of Hazardous Materials in the Demised Premises (i) if such Hazardous
Materials were present in the Demised Premises prior to Tenant's occupancy of the Demised Premises (other than as a result of Tenants acts or omissions), or (ii) if such Hazardous Materials
were present in the Demised Premises solely as the result of Landlord's acts or omissions. 

ARTICLE 29.

MISCELLANEOUS 

        29.1 Nothing
in this lease shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership
or of joint venture between the parties hereto, it being understood and agreed that neither the method of computation of rent, nor any other provision contained herein, nor any acts of the parties
hereto, shall be deemed to create any relationship between the parties hereto other than the relationship of landlord and tenant. 

        29.2 Tenant
shall not for any reason withhold or reduce Tenant's required payments of rentals and other charges provided in this lease, it being agreed that the obligations
of Landlord under this tease are independent of Tenants obligations except as may be otherwise expressly provided. The immediately preceding sentence shall not be deemed to deny Tenant the ability of
pursuing all rights granted it under this lease or at law; however, at the direction of Landlord, Tenant's claims in this regard shall be litigated in proceedings different from any litigation
involving rental claims or other claims by Landlord against Tenant (i.e., each party may proceed to a separate judgment without consideration, counterclaim or offset as to the claims asserted by the
other party). 

        29.3 The
liability of Landlord, any agent of Landlord, or any of their respective officers, directors, shareholders, or employees to Tenant for or in respect of any default
by Landlord under the terms of this lease or in respect of any other claim or cause of action shall be limited to the interest of Landlord in the Industrial Complex, and Tenant agrees to look solely
to Landlord's interest in the Industrial 

32

 

Complex
for the recovery and satisfaction of any judgment against Landlord, any agent of Landlord, or any of their respective officers, directors, shareholders, and employees. 

        29.4 In
all circumstances under this lease where the prior consent of one party (the "consenting party"), whether it be Landlord or Tenant, is required before the other
party (the "requesting party") is authorized to take any particular type of action, such consent shall not be withheld in a wholly unreasonable and arbitrary manner; however, the requesting party
agrees that its exclusive remedy if it believes that consent has been withheld improperly (including, but not limited to, consent required from Landlord pursuant to Section 19.1) shall be to
institute litigation either for a declaratory judgment or for a mandatory injunction requiring that such consent be given (with the requesting party hereby waiving any claim for damages, attorneys'
fees or any other remedy unless the consenting party refuses to comply with a court order or judgment requiring it to grant its consent). 

        29.5 Whenever
a period of time is herein prescribed for action to be taken by Landlord or Tenant, such party shall not be liable or responsible for, and there shall be
excluded from the computation of any such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, governmental laws, regulations or restrictions or any
other causes of any kind whatsoever which are beyond the reasonable control of such party, except for the payment of rent due hereunder. 

        29.6 If
any provision of this lease should be held to be invalid or unenforceable, the validity and enforceability of the remaining provisions of this lease shall not be
affected thereby. 

        29.7 Intentionally
deleted. 

        29.8 The
laws of the State of California shall govern the interpretation, validity, performance and enforcement of this lease. Venue for any action under this lease shall be
the county in which rentals are due pursuant to Section 4.2 and Section 1.1 of this lease. 

        29.9 The
captions used herein are for convenience only and do not limit or amplify the provisions hereof. 

        29.10 Whenever
herein the singular number is used, the same shall include the plural, and words of any gender shall include each other gender. 

        29.11 All
covenants and obligations contained within this lease shall bind and inure to the benefit of Landlord, its successors and assigns, and shall be binding upon and
inure to the benefit of Tenant, and its permitted successors and assigns. 

        29.12 This
lease contains the entire agreement between the parties, and no rights are created in favor of either party other than as specified or expressly contemplated in
this lease. No brochure, rendering, information or correspondence shall be deemed to be a part of this agreement unless specifically incorporated herein by reference. In addition, no agreement shall
be effective to change, modify or terminate this lease in whole or in part unless such is in writing and duly signed by the party against whom enforcement of such change, modification or termination
is sought. 

        29.13 LANDLORD
AND TENANT HEREBY ACKNOWLEDGE THAT THEY ARE NOT RELYING UPON ANY BROCHURE, RENDERING, INFORMATION, REPRESENTATION OR PROMISE OF THE OTHER, OR OF THE AGENT,
EXCEPT AS MAY BE EXPRESSLY SET FORTH IN THIS LEASE. 

        29.14 No
waiver of any of the terms, covenants, provisions, conditions, rules and regulations imposed by this lease, and no waiver of any legal or equitable relief or
remedy, shall be implied by the failure of Landlord to assert any rights, declare any forfeiture, or for any other reason. No waiver of any of the terms, provisions, covenants, conditions, rules and
regulations shall be valid unless it shall be in writing signed by Landlord. No waiver by Landlord or forgiveness of performance by Landlord for one or more tenants shall constitute a waiver or
forgiveness of performance in respect to Tenant. 

33

 

Landlord's
consent to or approval of any act by Tenant requiring Landlord's consent or approval under this lease shall not be deemed to render unnecessary the obtaining of Landlord's consent to or
approval of any subsequent act of Tenant. No act or thing done by Landlord or Landlord's agents during the term of this lease shall be deemed an acceptance of a surrender of the Demised Premises,
unless in writing signed by Landlord. The delivery of the keys to any employee or agent of Landlord shall not operate as a termination of this lease or a surrender of the Demised Premises. The
acceptance of any rent by Landlord following a breach of this lease by Tenant shall not constitute a waiver by Landlord of such breach or any other breach unless such waiver is expressly stated in a
writing signed by Landlord. 

        29.15 Tenant
shall deliver and surrender to Landlord possession of the Demised Premises (including all of Tenant's permanent work upon and to the Demised Premises, all
replacements and all fixtures permanently attached to the Demised Premises) immediately upon the expiration of the term or the termination of this lease in as good condition and repair as the same
were on the delivery date (loss by any insured casualty and ordinary wear and tear only excepted) and deliver the keys at the office of Landlord or Landlord's agent; provided, however, that upon
Landlord's request made at least thirty (30) days prior to the end of the term, or the date Tenant is otherwise required to vacate the Demised Premises, Tenant shall remove all fixtures and
equipment affixed to the Demised Premises by Tenant, and repair and restore the Demised Premises to their condition on the delivery date (loss by any insured casualty and ordinary wear and tear only
excepted), at Tenant's sole expense, subject to the last sentence of Section 11.1 above. The removal shall be performed prior to the earlier of the end of the term or the date Tenant is
required to vacate the Demised Premises. 

        29.16 Tenant
shall not record this lease. Without the prior written consent of Landlord, Tenant shall not record any memorandum of this lease, short form or other reference
to this lease. 

        29.17 The
submission of this lease for examination does not constitute a reservation of or option for the Demised Premises or any other space in the Industrial Complex, and
shall not vest any right in Tenant. This lease shall become effective as a lease only upon its execution and delivery by the parties. 

        29.18 LANDLORD
AND TENANT HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS LEASE OR ANY DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF
EITHER PARTY ARISING OUT OF OR RELATED IN ANY MANNER WITH THE DEMISED PREMISES (INCLUDING WITHOUT LIMITATION, ANY ACTION TO RESCIND OR CANCEL THIS LEASE OR ANY CLAIMS OR DEFENSES ASSERTING THAT THIS
LEASE WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE). THIS WAIVER IS A MATERIAL INDUCEMENT FOR LANDLORD TO ENTER INTO AND ACCEPT THIS LEASE. 

        29.19 If
Tenant is a corporation (including any form of professional association), then each individual executing or attesting this lease on behalf of such corporation
covenants, warrants and represents that he or she is duly authorized to execute or attest and deliver this lease on behalf of such corporation. If Tenant is a partnership (general or limited) or
limited liability company, then each individual executing this lease on behalf of the partnership or company hereby covenants, warrants and represents that he or she is duly authorized to execute and
deliver this lease on behalf of the partnership or company in accordance with the partnership agreement or membership agreement, as the case may be, or an amendment thereto, now in effect. 

        [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

34

 

        29.20 This
lease consists of twenty-nine Articles and Exhibits "A" through "E". With the exception of Article 7, in the event any provision of an exhibit
shall be inconsistent with a provision in the body of the lease, the provision as set forth in the exhibit shall be deemed to control. 

        EXECUTED
as of the latest date accompanying a signature by Landlord or Tenant below. 

        LANDLORD:

	 	 	MP CARIBBEAN, INC.

a Delaware corporation
	

 	
 	

By:	

/s/  THOMAS KLUGHER      
	 	 	 	

	 	 	Name:	Thomas Klugher
	 	 	 	

	 	 	Title:	Vice President
	 	 	 	

	

 	
 	

Date of Signature:	

7/14/03

	

TENANT:	
 	

 	

 	

 
	 	 	ACCURAY INCORPORATED,

a California corporation
	

 	
 	

By:	

/s/ Chris A. Raanes
	 	 	 	

	 	 	Name:	Chris A. Raanes
	 	 	 	

	 	 	Title:	COO
	 	 	 	

	

 	
 	

By:	

/s/ John M. Harland
	 	 	 	

	 	 	Name:	John M. Harland
	 	 	 	

	 	 	Title:	CFO and Ass't Secretary
	 	 	 	

	

 	
 	

Date of Signature:	

11 July, 2003

35

   

  

A-1

 

  

A-2

  

 
 

EXHIBIT "B"    
    
    CONSTRUCTION; TENANT ACCEPTANCE OF SPACE "AS IS"    
    

ARTICLE I. GENERAL

        Tenant
hereby accepts the Demised Premises "as is" and "ready for occupancy." Subject to Article IV below, Landlord shall have no obligation to perform any tenant improvements in
the Demised Premises or to fund any such improvements. Prior to any modification of the Demised Premises by or on behalf of Tenant, Tenant shall adhere to the following as well as the provisions
contained in Article 11 of the lease: 

ARTICLE II. PRE-CONSTRUCTION OBLIGATIONS

        A.    Complete
plans, diagrams, schedules and other data relating to work to be performed by Tenant in the Demised Premises must be furnished by Tenant to Landlord in form
sufficient to obtain a building permit. Without limiting the generality of the immediately preceding sentence, Tenant's submissions must include a floor plan, a reflected ceiling plan, a plumbing
plan, elevations of walls and a fixture plan. All drawings shall be at scale of either 1/8" or 1/4". 

        B.    Tenant
shall secure Landlord's written approval of all designs, plans, specifications, materials, contractors and contracts for work to be performed by Tenant before
beginning the work (including following whatever "work letter" instructions, if any, which Landlord may deliver to Tenant in connection with the work), and shall secure all necessary licenses and
permits to be used in performing the work. Tenant's finished work shall be subject to Landlord's approval and acceptance. 

        C.    The
insurance requirements under Article 15 of this lease and the indemnity requirements under Article 16 of this lease shall expressly apply during the
construction contemplated in this exhibit, and Tenant shall provide evidence of appropriate insurance coverage prior to beginning any of Tenant's work. Tenant shall provide Landlord with evidence of
insurance covering both Tenant and Tenant's contractor against damage to their personal property, as well as against third-party liability and workers' compensation claims arising out of all
construction and associated activities. All policies of insurance shall be subject to Landlord's prior approval and shall be endorsed showing Landlord as an additional named insured (or if permitted
by Landlord, may provide a waiver of subrogation against Landlord). 

ARTICLE III. DESCRIPTION OF TENANT'S WORK

        A.    Signs:
Tenant shall pay for all signs and the installation thereof, including the electrical hook-up, subject to the provisions of Section 13.1 of this
lease. 

        B.    Utilities:
All meters or other measuring devices in connection with utility services shall be provided by Tenant. All service deposits shall be made by Tenant at Tenant's
expense. 

        C.    All
work undertaken by Tenant shall be at Tenant's expense and shall not damage the Building or any part thereof. Any roof penetration shall be performed by Landlord's
roofer or, at Landlord's option, by a bonded roofer approved in advance by Landlord. The work shall be begun only after Landlord has given consent, which consent shall in part be conditioned upon
Tenant's plans, to include materials acceptable to Landlord, in order to prevent injury to the roof and to spread the weight of the equipment being installed. Tenant shall also be responsible for
obtaining and paying for professional inspections of any structural work (including, without limitation, any roof work or concrete work). 

        D.    All
work performed by or at the behest of Tenant shall be in compliance with all applicable Regulations. 

B-1

 

        E.    Any
code-required upgrades to the Demised Premises required as a result of Tenant's work performed under the terms of this Exhibit
"B" or under the terms of Article 11 of the lease shall be at Tenant's sole cost and expense, and shall not be deemed warranted by Landlord. 

        F.     Subject
to Landlord's prior approval of the exact location, not to be unreasonably withheld, and subject to applicable law, Tenant, at its own expense, shall be
authorized to identify up to twenty (20) parking spaces near the entrance to the Demised Premises as "visitor parking" spots and may stencil the curbs accordingly. Up to four (4) of said
twenty (20) spots closest to the front door of the Demised Premises may be stenciled as "Accuray Visitor Parking" spots. Landlord shall have no obligation to police or monitor compliance with
same by visitors to the Industrial Complex or other tenants thereof. Landlord hereby approves the twenty (20) parking spaces designated on the attached Exhibit
"B-1". 

ARTICLE IV. TENANT IMPROVEMENT ALLOWANCE

        A.    Tenant
shall be entitled to a tenant improvement allowance (the "Tenant Improvement Allowance") in the maximum amount of Three Hundred Thousand and No/100 Dollars
($300,000.00) for the costs relating to the initial design and construction of Tenant's improvements which are permanently affixed to the Demised Premises (the "Tenant Improvements"). In no event
shall Landlord be obligated to make disbursements for Tenant Improvements in a total amount which exceeds the Tenant Improvement Allowance. Notwithstanding the foregoing, no portion of the Tenant
Improvement Allowance may be applied to Tenant Improvements made to any portion of the Demised Premises which is then the subject of a sublease, or Tenant Improvements made to prepare any portion of
the Demised Premises for a proposed or anticipated subtenant or assignee, or for material or supplies not located on the Demised Premises. The Tenant Improvement Allowance may, however, be used for
(i) the purchase and installation of Tenants onsite telephone system and cabling, (ii) furnishings for the Demised Premises, and (iii) Tenant's relocation costs. 

        B.    Landlord
shall reimburse Tenant for costs and expenses actually incurred by Tenant for work actually performed, construction in place and/or materials delivered to the
Demised Premises in connection with the design and construction of the Tenant Improvements (as described in Paragraph IV.A above) upon receipt (not more frequently than monthly) of (i) a
written request from Tenant for reimbursement, (ii) invoices of Tenant's contractor, subcontractors or suppliers, as applicable, with evidence of payment thereof, (iii) conditional lien
waivers executed by Tenant's contractor, subcontractors or suppliers, as applicable, for their portion of the work covered by the reimbursement request, (iv) in the case of final payment,
unconditional lien waivers and mechanic's lien releases executed by Tenant's contractor, subcontractors or suppliers, as applicable (all such waivers and releases to be in the form prescribed by
California Civil Code Section 3262), and (v) all other information and documentation reasonably requested by Landlord. Landlord may withhold the amount of any and all retentions provided
for in the original contracts or subcontracts until expiration of the applicable lien periods or Landlord's receipt of unconditional lien waivers and mechanic's lien releases executed by Tenant's
contractor, subcontractors or suppliers, as applicable. 

        C.    Under
no circumstances shall Landlord be required to fund any portion of the Tenant Improvement Allowance when Tenant is in default under this lease. 

        D.    In
the event any portion of the Tenant Improvement Allowance has not been funded as a reimbursement by that date which is one hundred eighty (180) days after the
Commencement Date of this lease, such amount shall no longer be available for the payment of expenses in connection with the Tenant Improvements and shall be forfeited 

B-2

  

 
 

EXHIBIT "B-1"    
    
    DIAGRAM OF VISITOR PARKING SPACES    
    
    [See Attached]    

  

B-1-11

  

 
 

EXHIBIT "C"    
    
    TENANT CONSTRUCTION RULES AND REGULATIONS

        1.     All
demolition, removals and other categories of work that may inconvenience other tenants or disturb building operations must be scheduled and performed before or after
normal working hours, and the property manager for the Industrial Complex (the "Property Manager") shall be provided with at least twenty-four (24) hours notice prior to proceeding
with such work. 

        2.     All
structural and floor loading requirements shall be subject to the prior approval of the Industrial Complex's structural engineer. Approval shall be obtained by Tenant
and any fees shall be at Tenant's sole expense. 

        3.     All
mechanical (HVAC, plumbing and sprinkler) and electrical requirements shall be subject to the prior approval of Landlord's mechanical and electrical engineers. When
necessary, Property Manager will require engineering and shop drawings, which drawings must be approved by Property Manager before the work is started. Drawings shall be prepared by Tenant and all
approvals shall be obtained by Tenant. 

        4.     If
the shutdown of risers and mains for electrical, HVAC, sprinkler and/or plumbing work is required, such work shall be supervised by a representative of Landlord at
Tenant's sole expense at a time approved in advance by Property Manager. 

        5.     Tenant's
general contractor is responsible to do all of the following: 

        (a)   Properly
supervise construction at the Demised Premises at all times. 

        (b)   Police
the work at all times, continually keeping the affected space(s) safe and orderly. 

        (c)   Maintain
the cleanliness and protection of all affected areas. 

        (d)   Avoid
and prevent the disturbance of other tenants. 

        6.     If
Tenant's general contractor is negligent in any of its responsibilities, Tenant shall be charged for the corrective work done by Landlord's personnel. 

        7.     No
electrical cords are to be stretched across any walkways or public areas in any manner that would cause any safety hazard. 

        8.     Radios
may not be played if the sound can be heard in the Common Area or in other tenant suites. 

        9.     Electrical
rooms may not be used to store any materials, fixtures, etc. 

        10.   All
sprinkler shut downs, draining or filling shall be scheduled and coordinated with the Landlord's chief engineer or his delegate. 

        11.   Bracing,
soldering or welding shall be scheduled in advance with Property Manager. 

        12.   Dust
shall be kept at a minimum to avoid smoke detector activation. 

        13.   If
requested by Tenant, Property Manager shall provide space in the parking lot at a location to be determined by Landlord for a trash and debris bin during construction
of the tenant improvements. 

        14.   Damage
to any pre-installed fixtures (e.g., water fountains, sinks, lights, commodes, signage, etc.) shall be repaired at Tenant's sole expense. 

        15.   Tenant's
general contractor shall coordinate the keying schedule, Tenant's key requirements and cylinder installation with Landlord's designated locksmith. 

C-1

 

        16.   Where
appropriate, Tenant shall submit to Property Manager a final "as-built' set of drawings showing all items of work in full detail.
"As-built" shall be sepias, vellums, mylars or on Autocad. 

        17.   Throughout
the construction period and upon conclusion of the work, Tenant's general contractor shall cause the work areas and all other affected areas to be clean and
free of debris. 

C-2

  

 
 

EXHIBIT "D"    
    
    RIGHT OF FIRST OPPORTUNITY

        On
condition that Tenant has fully complied with all the terms and conditions of this lease and is not then in default under any of the terms and conditions of the lease beyond any
applicable notice and cure period, Tenant shall have a one-time right of first opportunity to negotiate a lease amendment to expand the Demised Premises to incorporate the entirety of the
adjacent 32,576 square foot space in the Building commonly known as 1314 Chesapeake Terrace (the "Adjacent Space") when Landlord notifies Tenant ("Landlord's Notice") that Landlord is ready to enter
into lease negotiations for such space with a third party. 

        (a)   When
Landlord is about to enter into such lease negotiations, Landlord shall deliver Landlord's Notice of Tenant's opportunity to negotiate, and shall identify in
Landlord's Notice the minimum guaranteed rental for the Adjacent Space. The annual minimum guaranteed rental payable by Tenant for the Adjacent Space for the remainder of the term shall be set at the
then fair market rental value for the Adjacent Space as determined by Landlord in its sole good faith discretion. The lease term for the Adjacent Space shall be coterminous with the term for the
Demised Premises and shall commence upon delivery. 

        (b)   Tenant
shall have (5) days from receipt of Landlord's Notice in which to notify Landlord in writing of Tenant's decision and/or to negotiate an alternative
minimum guaranteed rental amount. If Tenant accepts Landlord's proposal, or if the parties mutually agree within said five (5) day period to an alternative proposal, then Landlord and Tenant
shall, within ten (10) days, execute an amendment to this lease incorporating the Adjacent Space into the Demised Premises, setting forth Tenant's minimum guaranteed rental and new
proportionate shares, and any other adjustments to the lease negotiated by the parties (or logically necessitated by the addition of the Adjacent Space). If Tenant declines Landlord's proposal (or
otherwise does not reach agreement with Landlord regarding terms for the expansion), or if Tenant does not timely respond to Landlord's proposal, Landlord shall then be free to lease the Adjacent
Space to any third party or parties on such terms as Landlord may elect in its sole and absolute discretion, without any further liability to Tenant whatsoever with respect to the Adjacent Space. 

        (c)   If
the Demised Premises are expanded as hereinabove provided, the Adjacent Space shall be delivered to Tenant in its "AS IS" condition (without requirement for any
tenant improvement allowance, unless same shall be agreed upon by the parties). Tenant shall have the option of performing tenant improvements in the Adjacent Space subject to all of the terms and
provisions of the lease. 

        (d)   Notwithstanding
anything to the contrary set forth herein, this right of first opportunity shall not be available to any assignee or subtenant of Tenant who becomes the
"Tenant" hereunder. 

D-1

  

 
 

EXHIBIT "E"    
    
    RENEWAL OPTION

        Tenant
shall have the right to renew the term of this lease for one (1) four (4)-year term upon prior written notice ("Tenant's Election Notice") to Landlord given not
sooner than fifteen (15) months nor later than nine (9) months prior to the term expiration date; provided that at the time Tenant gives such notice to Landlord and for the remainder of
the initial term of this lease (i) this lease has not been assigned and Tenant continues to occupy at least ninety percent (90%) of the rentable square footage of the Demised Premises and
(ii) Tenant is not in default hereunder. During the renewal term, the provisions of this lease, as it may be amended in writing prior to the date of the commencement of such renewal term, shall
continue in effect except that Tenant shall occupy the Demised Premises in its then "AS IS" condition and there shall be no abatement of rent, nor shall there be credit or allowances given to Tenant
for improvements to the Demised Premises, and the minimum guaranteed rental will be an amount equal to whatever monthly rental (plus whatever periodic adjustments) Landlord is then quoting to
prospective tenants for new leases of comparable space in the Industrial Complex for a comparable term (as confirmed by written statement delivered to Tenant by a representative of Landlord within
fifteen (15) days of delivery of Tenant's Election Notice), or if no comparable space exists in the Industrial Complex, then one hundred percent (100%) of the projected prevailing market rate
of rent for comparable space with comparable finish-out in comparable industrial buildings in comparable locations, as of the term expiration date (as confirmed by written statement
delivered to Tenant by a representative of Landlord within fifteen (15) days of delivery of Tenant's Election Notice); provided, however, that in no event shall the minimum guaranteed rental
rate during such renewal term be less than the fully escalated minimum guaranteed rental rate being paid by Tenant during the last full calendar month of the initial lease term. It is understood and
agreed that Tenant's submittal of Tenant's Election Notice shall bind Tenant to a four (4)-year extension of this lease. 

        If
by the date forty-five (45) days following delivery of Tenant's Election Notice, Landlord and Tenant have not agreed in writing as to the amount of the minimum
guaranteed rental for the renewal term, the parties shall determine the projected prevailing market rental rate in accordance with the following procedure. Landlord and Tenant shall each appoint one
real estate appraiser, and the two so appointed shall select a third. Said real estate appraisers shall each be licensed in the State of California, specializing in the field of commercial real estate
in the City of Sunnyvale, California, having no less than ten (10) years experience in such field, unaffiliated with either Landlord or Tenant, and recognized as ethical and reputable within
their field. Landlord and Tenant agree to make their appointments promptly within ten (10) days after expiration of the forty-five (45) day negotiation period, or sooner if
mutually agreed upon. The two appraisers selected by Landlord and Tenant shall promptly select a third appraiser within thirty
(30) days after they both have been appointed, and each appraiser, within forty-five (45) days after the third appraiser is selected, shall submit his or her determination of
the then projected prevailing market rate of rent for comparable space with comparable finish-out in comparable industrial buildings in comparable locations. The prevailing market rental
rate shall be the mean of the two closest rental determinations. 

        Once
the minimum guaranteed rental for the renewal term has been established, the parties shall memorialize same in a writing to be prepared by Landlord. 

E-1

 
 

FIRST AMENDMENT TO INDUSTRIAL COMPLEX LEASE    
    

        This FIRST AMENDMENT TO INDUSTRIAL COMPLEX LEASE ("Amendment") is made as of this 9th day of December, 2004 ("Effective Date"), by and between MP
CARIBBEAN, INC., a Delaware corporation ("Landlord"), and ACCURAY INCORPORATED, a California corporation ("Tenant"). 

 
 

RECITALS    
    

        A.    Pursuant
to that certain Industrial Complex Lease, dated as of July 9, 2003, entered into by and between Landlord and Tenant ("Lease"), Landlord currently leases
to Tenant, and Tenant leases from Landlord, certain Demised Premises (as defined in the Lease and more particularly shown on the plan attached as Exhibit "A" thereto), consisting of approximately
forty thousand (40,000) rentable square feet in that certain Building located at 1310 Chesapeake Terrace, Sunnyvale, California. Except to the extent otherwise expressly provided in this Amendment,
for purposes hereof, the Demised Premises (i.e., 1310 Chesapeake Terrace) shall be referred to herein as the "Original Premises." 

        B.    Tenant
desires to (i) expand the Demised Premises by leasing from Landlord certain premises adjoining the Original Premises and (ii) extend the Lease term,
and Landlord is willing to permit the same, subject to the terms and conditions of this Amendment. 

        C.    Capitalized
terms used in this Amendment shall have the meaning ascribed to such terms in the Lease unless otherwise defined in this Amendment. 

        NOW,
THEREFORE, in consideration of the foregoing recitals and other consideration, the sufficiency of which is hereby acknowledged, Landlord and Tenant hereby amend, modify and
supplement the Lease as follows: 

        1.    Lease of Additional Premises.    Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, those
certain premises consisting of approximately thirty-two thousand five
hundred seventy-six (32,576) rentable square feet located in that certain Building in the Industrial Complex located at 1314 Chesapeake Terrace and more particularly shown on Exhibit "B"
attached hereto ("Additional Premises"). Tenant's lease of the Additional Premises shall be subject to all of the terms and conditions of the Lease, except as set forth in this Amendment. Landlord and
Tenant hereby agree and acknowledge that, from and after the Additional Premises Delivery Date (as defined in Section 2 below), (A) the term "Demised Premises" as used in the Lease shall
collectively refer to (i) the Original Premises and (ii) the Additional Premises and (B) the rentable square footage of the Demised Premises shall be seventy-two
thousand five hundred seventy-six (72,576). 

        2.    Condition of Additional Premises.    The Additional Premises are being leased to Tenant in "AS IS" condition
with Tenant accepting all defects, if any; and, subject to the express provisions of this Section 2 and Section 3 hereof, Landlord makes no warranty of any kind, express or implied, with
respect to the Additional Premises (without limitation, Landlord makes no warranty as to the habitability, fitness or suitability of the Demised Premises for a particular purpose nor as to the absence
of any toxic or otherwise hazardous substances). This Section 2 is subject to any contrary requirements under applicable law; however, in this regard, Tenant acknowledges that it has been given
the opportunity to inspect the Additional Premises and to have qualified experts inspect the Additional Premises prior to the execution of this Amendment. Except for Landlord's obligation to make the
Allowance available to Tenant under the Work Letter Agreement attached hereto as Exhibit "C" ("Work Letter Agreement"), Landlord shall have no obligation to alter, repair or improve the Additional
Premises for Tenant's use and occupancy thereof. Notwithstanding the foregoing, Landlord shall be responsible for any improvements or alterations that may be required under the Americans With
Disabilities Act and regulations promulgated thereunder with respect to the Additional Premises in its existing condition as of the date hereof without regard to any improvements to be made by or
behalf of Tenant. Tenant shall be responsible for any improvements or alterations that may be required to be made to the Additional Premises under the Americans With Disabilities Act and regulations
promulgated thereunder with respect to any improvements made to the Additional Premises by or on 

 

behalf
of Tenant. In addition, to the extent any Hazardous Materials are discovered in the Additional Premises and removal of such Hazardous Materials is required under applicable Environmental Laws,
Landlord shall remove such Hazardous Materials from the Premises at its sole cost and expense. 

        3.    Delivery of Additional Premises.    Landlord shall deliver the Additional Premises to Tenant on or before  December 22, 2004 ("Additional Premises Delivery Date") in order to allow Tenant to make preparations for its occupancy thereof, including for
space planning, construction of tenant improvements, fixturization and the installation of Tenant's telephone, communications and computer equipment, cabling, furniture and personal property, all in
accordance with the terms and conditions of the Work Letter Agreement. Landlord shall deliver the Additional Premises to Tenant in the condition specified in Section 2 above; provided, however,
that the roof, heating, ventilating and air conditioning system,
electrical, plumbing and lighting systems in the Additional Premises shall be in good working order on the Additional Premises Delivery Date. Tenant shall not be obligated to pay guaranteed minimum
rental or Tenant's Proportionate Share of any real estate charges, insurance expenses or Common Area Charges during the period from the Additional Premises Delivery Date until the Additional Premises
Rent Commencement Date (as defined in Section 5). Tenant shall provide Landlord with certificates of insurance showing Tenant maintains the insurance coverage required of Tenant under Sections
15.2 and 15.3 of the Lease with respect to the Additional Premises prior to taking possession of the Additional Premises. 

        4.    Extension of Lease Term.    Landlord and Tenant hereby extend the Lease term for the Original Premises for an
additional five (5) calendar months until February 29, 2008 and the Lease term for the Additional Premises shall commence January 1, 2005 and expire on February 29, 2008
("Extended Term"). 

        5.    Rental.    

        (a)    Additional Premises.    Commencing on January 1, 2005 ("Additional Premises Rent Commencement Date") and
continuing on the first day of each calendar month thereafter during the Extended Term, Tenant shall pay guaranteed minimum rental for the Additional Premises as follows ("Additional Premises
Guaranteed Minimum Rental"): 

	Extended Term

Lease Month
	 	Monthly Guaranteed

Minimum Rental
	 	Monthly

Rental Rates

	1-2	 	$	0	 	$	O/RSF
	3-14	 	$	21,774.40	 	$	.65/RSF
	15-26	 	$	22,803.20	 	$	.70/RSF
	27-38	 	$	24,432	 	$	.75/RSF

        The
Additional Premises Guaranteed Minimum Rental shall be paid by Tenant during the Extended Term at the same time and in the same manner as set forth in Article 4 of the Lease;
provided however, Tenant shall pay the Additional Premises Guaranteed Monthly Rental for the third (3rd) month of the Extended Term upon execution of this Amendment by Tenant. 

        (b)    Original Premises.    During the Extended Term, Tenant shall continue to pay minimum guaranteed rental for the
Original Premises in the amount set forth in the Lease. During the last five (5) calendar months of the Extended Term, Tenant shall pay minimum guaranteed rental for the Original Premises in
the amount of Thirty Thousand Dollars ($30,000) per month. 

        6.    Tenant's Proportionate Share.    Commencing with the Additional Premises Rent Commencement Date, Tenant pay the
real estate charges, insurance expenses and Common Area Charges applicable to the Additional Premises in accordance with Articles 6 and 7 of the Lease. From 

2

 

and
after the Additional Premises Rent Commencement Date, Tenant's Proportionate Share with respect to the Demised Premises shall be as follows: 

	Tenant's Prorata Share of Building Common Area Costs	 	44.89	%
	Tenant's Prorata Share of Parcel Common Area Costs	 	22.09	%
	Tenant's Prorata Share of Industrial Complex Common Area Costs	 	12.85	%

        7.    Additional Security Deposit.    Concurrently with the execution of this Amendment, Tenant shall deposit with
Landlord cash in the amount of Twenty-four Thousand Four Hundred Thirty-two Dollars ($24,432) ("Additional Security Deposit"), which Additional Security Deposit shall be held
by Landlord as part of the Security Deposit in accordance with Article 8 of the Lease. Notwithstanding anything contained in Article 8 of the Lease, the Additional Security Deposit shall
be held by Landlord separate and apart from any letter of credit Tenant has delivered to Landlord as part of the original Security Deposit. 

        8.    Parking.    From and after the Additional Premises Rent Commencement Date, Tenant shall be entitled to use a
total of two hundred sixty-five (265) unreserved parking spaces in the parking areas of the Industrial Complex in connection with the Demised Premises in accordance with
Article 7 of the Lease. Tenant shall be authorized to identify an additional twelve (12) "visitor parking" spaces, including four (4) "Accuray Visitor Parking" spaces in
accordance with Exhibit "B", Article III, Section F of the Lease, and to be shown in a revised Exhibit "B-1" which the parties shall approve in writing and substitute for the
existing Exhibit "B-1" attached to this Lease. 

        9.    Brokers.    Each party represents and warrants to the other party that it has not had dealings in any manner
with any real estate broker, finder or other person with respect to the negotiation and execution of this Amendment except Wayne Mascia Associates, who has acted as Tenant's broker ("Tenant's
Broker"), and South Bay Development Corporation, who has acted as Landlord's broker ("Landlord's Broker"). Except as to commissions and fees to be paid as provided hereunder, Tenant shall indemnify,
defend and hold harmless Landlord from all damage, loss, liability and expense (including attorneys' fees and related costs) arising out of or resulting from any claims for commissions or fees that
may or have been asserted against Landlord by any broker, finder or other person with whom Tenant has or purportedly has dealt with in connection with the negotiation and execution of this Amendment.
Landlord shall pay broker leasing commissions to Tenant's Broker and Landlord's Broker pursuant to a separate agreement. Landlord and Tenant agree that Landlord shall not be obligated to pay any
broker leasing commissions, consulting fees, finder fees or any other fees or commissions arising out of or relating to any extension of the Extended Term or to any further expansion or relocation of
the Demised Premises at any time. All indemnities of Tenant set forth in this Amendment shall survive the expiration or earlier termination of the Lease. 

        10.    Right of First Opportunity.    The Right of First Opportunity set forth in Exhibit "D" to the Lease is hereby
deleted. 

        11.    Option to Renew.    The Renewal Option set forth in Exhibit "E" to the Lease is hereby deleted and the
following inserted in its place: 

        (a)    Grant of Option.    Tenant shall have the right to renew the term of this Lease upon the expiration of the
Extended Term as to the entire Demised Premises (i.e., the Original Premises and Additional Premises) for one three-year term ("Renewal Term") upon prior written notice ("Tenant's Election
Notice") to Landlord given not sooner than two hundred seventy (270) days nor later than one hundred eighty (180) days prior to the expiration of the Extended Term; provided that at the
time Tenant gives such notice to Landlord and for the remainder of the Extended Term, (i) this Lease has not been assigned and Tenant continues to occupy ninety percent (90%) of the rentable
square footage of the Demised Premises and (ii) Tenant is not in default under the Lease. During the Renewal Term, the provisions of this Lease, as it may be further amended in writing prior to
the date of the 

3

 

commencement
of the Renewal Term, shall continue in effect except that Tenant shall occupy the Demised Premises in its then "AS IS" condition and there shall be no abatement of rent, nor shall there
be credit or allowances given to Tenant for improvements to the Demised Premises, and the minimum guaranteed rental will be an amount equal to whatever monthly rental (plus whatever periodic
adjustments) Landlord is then quoting to prospective tenants for new leases of comparable space in the Industrial Complex for a comparable term (as confirmed by written statement delivered to Tenant
by a representative of Landlord within fifteen (15) days of delivery of Tenant's Election Notice ["Landlord's Confirmation Statement"]), or if no comparable space exists
in the Industrial Complex, then one hundred percent (100%) of the projected prevailing market rate of rent for comparable space with comparable finish-out in comparable industrial
buildings in comparable locations, as of the Extended Term expiration date (as confirmed by Landlord's Confirmation Statement delivered to Tenant by a representative of Landlord within fifteen
(15) days of delivery of Tenant's Election Notice); provided, however, in no event shall the minimum guaranteed rental rate during such renewal term be less than the fully escalated minimum
guaranteed rental rate being paid by Tenant with respect to the Original Premises during the last full calendar month of the Extended Term. Within fifteen (15) days after Tenant's receipt of
Landlord's Confirmation Statement, Tenant may deliver to Landlord a written revocation of its exercise of the renewal right. In such event, Tenant's Election Notice shall be null and void and the
Lease shall expire upon the expiration of the Extended Term. Tenant's failure to deliver such written revocation within said fifteen (15) day period shall be deemed Tenant's waiver of its right
to revoke its exercise of the renewal right hereunder. 

        12.    ERISA Certificate.    Concurrently with Tenant's execution and delivery of this Amendment, Tenant shall execute
and deliver to Landlord an ERISA Certificate in the form attached hereto as Exhibit "C." 

        13.    Corporate Authority.    Concurrently with the execution and delivery of this Amendment, Tenant shall provide
Landlord with a certificate of incumbency or other evidence satisfactory to Landlord that the individuals executing this Amendment on behalf of Tenant are authorized to execute this Amendment and bind
Accuray, Incorporated. 

        14.    Bonus Rent.    Notwithstanding anything contained in Section 19.4 of the Lease, in the event the rental
due and payable by a sublessee (or a combination of the rental payable under such sublease plus any bonus or other consideration therefore or incident thereto) exceeds the rental payable under this
Lease, or the rental payable with respect to the portion of the Demised Premises subject to the
sublease, or if with respect to a permitted assignment, permitted license or other transfer by Tenant permitted by Landlord, the consideration payable to Tenant by the assignee, licensee or other
transferee exceeds the rental payable under the Lease, or the rental payable with respect to the portion of the Demises Premises subject to such assignment, license or other transfer, then Tenant
shall be bound and obligated to pay Landlord fifty percent (50%) of all such excess rental and other excess consideration within ten (10) days following receipt thereof from such sublessee,
assignee, licensee or other transferee, as the case may be, less (a) reasonable brokerage fees paid by Tenant in connection with the transaction, and (b) reasonable legal fees paid by
Tenant in connection with the transaction. 

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

4

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first set forth above. 

	 	 	TENANT:
	

 	
 	

ACCURAY, INCORPORATED,

a California corporation
	

 	
 	

By:	

/s/  CHRIS A. RAANES      

	

 	
 	

Its:	

COO

	

 	
 	

Printed Name:	

Chris A. Raanes

	

 	
 	

By:	

/s/  ROBERT E. MCNAMARA      

	

 	
 	

Its:	

CFO

	

 	
 	

Printed Name:	

Robert E. McNamara

	

 	

 	

 LANDLORD:
	

 	
 	

MP CARIBBEAN INC.,

a Delaware corporation
	

 	
 	

By:	

/s/  MICHAEL J. KRIER      

	

 	
 	

Its:	

Vice President
 Michael J. Krier

5

   

  

6

 

  

7

 

  

8

 
EXHIBIT "C"
  WORK LETTER AGREEMENT  

ARTICLE I.    GENERAL

        Tenant
hereby accepts the Additional Premises "as is" and "ready for occupancy. Subject to Article IV below, Landlord shall have no obligation to perform any tenant improvements
in the Additional Premises or to fund any such improvements. Prior to any modification of the Additional Premises by or on behalf of Tenant, Tenant shall adhere to the following as well as the
provisions contained in Article 11 of the lease: 

ARTICLE II.    PRE-CONSTRUCTION OBLIGATIONS

	A.
	Complete
plans, diagrams, schedules and other data relating to work to be performed by Tenant in the Additional Premises must be furnished by Tenant to Landlord in form sufficient to
obtain a building permit. Without limiting the generality of the immediately preceding sentence, Tenant's submissions must include a floor plan, a reflected ceiling plan, a plumbing plan, elevations
of walls and a fixture plan. All drawings shall be at scale of either 1/8' or 1/4".

	B.
	Tenant
shall secure Landlord's written approval of all designs, plans, specifications, materials, contractors and contracts for work to be performed by Tenant before beginning the work
(including following whatever "work letter" instructions, if any, which Landlord may deliver to Tenant in connection with the work), and shall secure all necessary licenses and permits to be used in
performing the work. Tenant's finished work shall be subject to Landlord's approval and acceptance.

	C.
	The
insurance requirements under Article 15 of the Lease and the indemnity requirements under Article 16 of the Lease shall expressly apply during the construction
contemplated in this exhibit, and Tenant shall provide evidence of appropriate insurance coverage prior to beginning any of Tenant's work. Tenant shall provide Landlord with evidence of insurance
covering both Tenant and Tenant's contractor against damage to their personal property, as well as against third-party liability and workers' compensation claims arising out of all construction and
associated activities. All policies of insurance shall be subject to Landlord's prior approval and shall be endorsed showing Landlord as an additional named insured (or if permitted by Landlord, may
provide a waiver of subrogation against Landlord). 

ARTICLE III.    DESCRIPTION OF TENANT'S WORK

	A.
	Signs:
Tenant shall pay for all signs and the installation thereof, including the electrical hook-up, subject to the provisions of Section 13.1 of this lease.

	B.
	Utilities:
All meters or other measuring devices in connection with utility services shall be provided by Tenant. All service deposits shall be made by Tenant at Tenant's expense.

	C.
	All
work undertaken by Tenant shall be at Tenant's expense and shall not damage the Building or any part thereof. Any roof penetration shall be performed by Landlord's roofer or, at
Landlord's option, by a bonded roofer approved in advance by Landlord. The work shall be begun only after Landlord has given consent, which consent shall in part be conditioned upon Tenant's plans, to
include materials acceptable to Landlord, in order to prevent injury to the roof and to spread the weight of the equipment being installed. Tenant shall also be responsible for obtaining and paying
for professional inspections of any structural work (including, without limitation, any roof work or concrete work). 

9

 
	D.
	All
work performed by or at the behest of Tenant shall be in compliance with all applicable Regulations, the terms and conditions set forth in Article 11 of the Lease and the
Tenant Construction Rules and Regulations attached as Exhibit "C" to the Lease.

	E.
	Any
code-required upgrades to the Additional Premises required as a result of Tenant's work performed under the terms of this Exhibit
"C" or under the terms of Article 11 of the Lease shall be at Tenant's sole cost and expense, and shall not be deemed warranted by Landlord. 

ARTICLE IV.    TENANT IMPROVEMENT ALLOWANCE

	A.
	Tenant
shall be entitled to a tenant improvement allowance (the "Tenant Improvement Allowance") in the maximum amount of One Hundred Sixty-two Thousand Eight Hundred Eighty
and No/100 Dollars ($162,880.00) for the costs relating to the initial design and construction of Tenant's improvements which are permanently affixed to the Additional Premises (the "Tenant
Improvements"). In no event shall Landlord be obligated to make disbursements for Tenant Improvements in a total amount which exceeds the Tenant Improvement Allowance. Notwithstanding the foregoing,
no portion of the Tenant Improvement Allowance may be applied to Tenant Improvements made to any portion of the Additional Premises which is then the subject of a sublease, or Tenant Improvements made
to prepare any portion of the Additional Premises for a proposed or anticipated subtenant or assignee, or for material or supplies not located on the Additional Premises.

	B.
	Landlord
shall reimburse Tenant for costs and expenses actually incurred by Tenant for work actually performed, construction in place and/or materials delivered to the Additional
Premises in connection with the design and construction of the Tenant Improvements (as described in Paragraph IV.A above) upon receipt (not more frequently than monthly) of (i) a written
request from Tenant for reimbursement, (ii) invoices of Tenant's contractor, subcontractors or suppliers, as applicable, with evidence of payment thereof, (iii) conditional lien waivers
executed by Tenant's contractor, subcontractors or suppliers, as applicable, for their portion of the work covered by the reimbursement request, (iv) in the case of final payment, unconditional
lien waivers and mechanic's lien releases executed by Tenant's contractor, subcontractors or suppliers, as applicable (all such waivers and releases to be in the forms prescribed by California Civil
Code Section 3262), and (v) all other information and documentation reasonably requested by Landlord. Landlord may withhold the amount of any and all retentions provided for in the
original contracts or subcontracts until expiration of the applicable lien periods or Landlord's receipt of unconditional lien waivers and mechanic's lien releases executed by Tenant's contractor,
subcontractors or suppliers, as applicable.

	C.
	Under
no circumstances shall Landlord be required to fund any portion of the Tenant Improvement Allowance when Tenant is in default under the Lease.

	D.
	In
the event any portion of the Tenant Improvement Allowance has not been funded as a reimbursement by that date which is one hundred eighty (180) days after the Additional
Premises Deliver Date, such amount shall no longer be available for the payment of expenses in connection with the Tenant Improvements and shall be forfeited. 

10

  

EXHIBIT "D"  

ERISA CERTIFICATE  

        THIS ERISA CERTIFICATE is made as of December 9, 2004, by ACCURAY, INCORPORATED, a California corporation, having offices at 1310 Chesapeake Terrace,
Sunnyvale, California ("Lessee"), in favor of MP Caribbean, Inc. a Delaware corporation ("Lessor") and the General Motors Hourly-Rate Employees Pension Plan, the General Motors
Retirement Program for Salaried Employees, the Employees Retirement Plan for GMAC Mortgage Group, the Saturn Individual Retirement Plan for Represented Team Members, the Saturn Personal Choices
Retirement Plan for Non-Represented Team Members, the Delphi Hourly-Rate Employees Pension Plan, and the Delphi Retirement Program for Salaried Employees, its
shareholders/interestholders, c/o SSR Realty Advisors, Inc., One California Street, Suite 1400, San Francisco, CA 94111. 

 
 

WITNESSETH:    
    

        WHEREAS, Lessor and Lessee anticipate entering into a First Amendment to Industrial Complex Lease (the "Lease Agreement"), pursuant to which Lessor shall lease to
Lessee, and Lessee shall lease from Lessor, certain real property, known as and located at 1314 Chesapeake Terrace, Sunnyvale, California. 

        WHEREAS,
Lessor is in need of certain information regarding Lessee so that it may proceed with the Lease Agreement. 

        NOW,
THEREFORE, Lessee hereby certifies, represents, warrants and covenants to Lessor that as of the date hereof: 

        Representation 1.    Type of Lessee (check applicable boxes)    

        ý    Lessee
is not an "employee benefit plan" ("Plan") as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), which is subject to Title 1 of ERISA. 

        ý    Lessee
is not a "governmental plan" within the meaning of Section 3(32) of ERISA. 

        Representation 2.    Complete if Lessee is not a Plan and Has Shareholders or
Interestholders (check applicable boxes)    

        One
or more of the following circumstances also is true: 

        o     Equity
interests in Lessee are publicly offered securities within the meaning of 29 C.F.R.
Section 2510.3-101(b)(2); 

        ý    Less
than 25 percent of all equity interests in Lessee are held by "benefit plan investors," which are defined as:
(i) any employee benefit plan, whether or not subject to Title 1 of ERISA; (ii) any plan described in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended; and
(iii) any entity whose underlying assets include plan assets by reason of a plan's investment in the entity; or 

        ý    Lessee
is a corporation that qualifies as an "operating company," a "venture capital operating company," or a "real estate
operating company" within the meaning of 29 C.F.R. Section 2510.3-101(c), (d) and (e) (each, an "Operating Company"). 

        Representation 3.    Lessee's relation to Lessor and Lessor's
Shareholders/Interestholders (check applicable boxes.)    

        Lessee
is not a party in interest as defined in section 3(14) of ERISA with respect to Lessor or its shareholders or interestholders, the General Motors Hourly-Rate
Employees Pension Plan, the General Motors Retirement Program for Salaried Employees, the Employees Retirement Plan for GMAC 

11

 

Mortgage
Group, the Saturn Individual Retirement Plan for Represented Team Members, the Saturn Personal Choices Retirement Plan for Non-Represented Team Members, the Delphi
Hourly-Rate Employees Pension Plan, and the Delphi Retirement Program for Salaried Employees, because Lessee is not: 

        ý    a
fiduciary (including, but not limited to, any administrator, officer, trustee or custodian), counsel, or employee of Lessor
or its shareholders or interestholders ("Fiduciary"); 

        ý    a
person providing services to Lessor or its shareholders or interestholders ("Service Provider"); 

        ý    an
employer any of whose employees are provided employment benefits by Lessor or its shareholders or interestholders
("Employer"); 

        ý    an
employee organization any of whose members are provided employment benefits coverage by Lessor or its shareholders or
interestholders ("Employee Organization"); 

        ý    an
owner, direct or indirect, of 50 percent or more of (i) the combined voting power of all classes of stock
entitled to vote or the total value of shares of all classes of stock of a corporation, (ii) the capital interest or the profits interest of a partnership, or (iii) the beneficial
interest of a trust or unincorporated enterprise, which is an Employer or an Employee Organization ("Owner"); 

        ý    a
spouse, ancestor, lineal descendant, or spouse of a lineal descendant of a Fiduciary, Service Provider, Employer, or an
Owner; 

        ý    a
corporation, partnership, or trust or estate of which (or in which) 50 percent or more of (i) the combined
voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation, (ii) the capital interest or profits interest of such
partnership, or (iii) the beneficial interest of such trust or estate is owned directly or indirectly, or held by a Fiduciary, Service Provider, Employer, Employee Organization, or Owner
("Corporate Owner"); 

        ý    an
employee, officer, director (or an individual having powers or responsibilities similar to those of officers or
directors), or a 10 percent or more shareholder directly or indirectly, of a Service Provider, Employer, Employee Organization, Owner, or a Corporate Owner; or 

        ý    a
10 percent or more (directly or indirectly in capital or profits) partner or joint venturer of a Service Provider,
Employer, Employee Organization, Owner, or a Corporate Owner. 

        Representation 4.    Indemnity, Guaranty    

        Lessee
shall indemnify Lessor and defend and hold Lessor harmless from and against all loss, cost, damage and expense (including, without limitation, attorneys' fees and costs incurred
in the investigation, defense and settlement of claims and losses incurred in correcting any prohibited transaction, and in obtaining any individual prohibited transaction exemption under ERISA that
may be required, in Lessor's sole discretion) that Lessor may incur, directly or indirectly, as a result of the Lessee's representation contained in this certificate. 

12

 

        Representation 5.    Survival    

        Lessee
represents that the certifications, representations, warranties and covenants contained herein shall remain true and correct throughout the term of the Lease Agreement. 

	 	 	ACCURAY, INCORPORATED,

a California corporation
	

 	
 	

BY:	

/s/  [SIGNATURE ILLEGIBLE]      

	

 	
 	

NAME:	

Signature Illegible

	

 	
 	

ITS:	

Vice President and Controller

13

  

 
 

SECOND AMENDMENT TO INDUSTRIAL COMPLEX LEASE    
    

        THIS SECOND AMENDMENT TO INDUSTRIAL COMPLEX LEASE (this
"Amendment") is made and entered into as of September 25, 2006, by and between BRCP CARIBBEAN PORTFOLIO, LLC, a Delaware
limited liability company("Landlord"), and ACCURAY INCORPORATED, a California
corporation ("Tenant"). 

 
 

RECITALS    
    

	A.
	Landlord
(as successor in interest to MP Caribbean, Inc., a Delaware corporation) and Tenant are parties to that certain Industrial Complex Lease dated as of July 9, 2003
(the "Original Lease"), which Original Lease has been previously amended by that First Amendment to Industrial Complex Lease dated as of
December 9, 2004 (the "First Amendment") (collectively, the "Lease"). Pursuant to the Lease,
Landlord has leased to Tenant space currently containing approximately 72,576 rentable square feet (the "Original
Premises") described as approximately 40,000 rentable square feet in that certain building located at 1310 Chesapeake Terrace, Sunnyvale, California and approximately 32,576
rentable square feet in that certain building located at 1314 Chesapeake Terrace, Sunnyvale, California (collectively, the "Buildings"), which are a
part of the approximately 253,540 rentable square foot industrial complex commonly referred to as Caribbean Corporate Center (the "Industrial Complex").

	B.
	Tenant
has requested that additional space containing approximately 52,992 rentable square feet of the building located at 1315
Chesapeake Terrace, Sunnyvale, California (the "Expansion Building") and shown on Exhibit A
hereto (the "Expansion Space") which is a part (of the Industrial Complex, be added to the Original Premises and that the Lease be appropriately amended
and Landlord is willing to do the same on the following terms and conditions. 

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

        1.    Expansion and Effective Date.    Effective as of the Expansion Effective Date (defined
below), the Original Premises is increased from approximately 72,576 rentable square feet of the Industrial Complex to approximately 125,568 rentable
square feet of the Industrial Complex by the addition of the Expansion Space, and from and after the Expansion Effective Date, the Original Premises and the Expansion Space, collectively, shall be
deemed the Demised Premises, as defined in the Lease and as used herein. The term for the Expansion Space (the "Expansion Space Term") shall commence on
the Expansion Effective Date and end upon the expiration of the forty-second (42nd) full calendar month of the Expansion Space Term (i.e., May 31, 2010). For clarity, the parties hereto intend
the following: (i) subject to the terms and conditions of the Lease, as amended hereby, the Expansion Space Term shall end on May 31, 2010, and (ii) the Extended Term (as defined
in the First Amendment) for the Original Premises shall end, subject to the terms and conditions of the Lease, as amended hereby on February 29, 2008, unless Tenant validly elects to exercise
its Renewal Option set forth in Section 11 of the First Amendment. Nothing set forth herein shall modify the Extended Term (as defined in the First Amendment) of the Original Premises. The
Expansion Space is subject to all the terms and conditions of the Lease except as expressly modified herein and except that Tenant shall not be entitled to receive any allowances, abatements or other
financial concessions granted with respect to the Original Premises unless such concessions are expressly provided for herein with respect to the Expansion Space. 

        (a)   The
"Expansion Effective Date" shall be November 15, 2006. Landlord shall use good faith, commercially reasonable
efforts to substantially complete the Expansion Space Improvements on or before the Expansion Effective Date; provided, however, that Tenant hereby acknowledges and agrees that any delays in such
substantial completion of the Expansion Space Improvements shall not subject 

1

 

Landlord
to any liability therefor and the Expansion Effective Date shall not be delayed or extended as a result thereof. Landlord represents that as of the date of this Amendment, the Expansion Space
is currently vacant and no other tenant is in possession thereof. 

        2.    Minimum Guaranteed Rental.    In addition to Tenant's obligation to pay minimum
guaranteed rental for the Original Premises, Tenant shall pay Landlord minimum guaranteed rental for the Expansion Space as follows: 

	Period of Term
 
	 	Annual Rate

Per Square Foot
	 	Annual Minimum

Guaranteed Rental
	 	Monthly Minimum

Guaranteed Rental

	Month 1 - Month 6	 	$	6.90	 	$	365,644.80	 	$	30,470.40
	Month 7 - Month 12	 	$	13.80	 	$	731,289.60	 	$	60,940.80
	Month 13 - Month 24	 	$	14.40	 	$	763,084.80	 	$	63,590.40
	Month 25 - Month 36	 	$	15.00	 	$	794,880.00	 	$	66,240.00
	Month 37 - Month 42	 	$	15.60	 	$	826,675.20	 	$	68,889.60

        All
such minimum guaranteed rental shall be payable by Tenant in accordance with the terms of the Lease, as amended hereby. 

        3.    Tenant's Proportionate Share.    During the Expansion Space Term, Tenant's Proportionate
Share for the Expansion Building is 100%. Tenant's Proportionate Share for the Parcel Common Area Costs (consisting of the Common Area Charges for the real property tax parcel containing 1310 and 1314
Chesapeake Terrace, Sunnyvale, California) for the Original Premises is 49.22% (i.e., 27.13% as specified in the Original Lease, plus 22.09% as specified in the First Amendment). Tenant's
Proportionate Share for the Parcel Common Area Costs (consisting of the Common Area Charges for the real property tax parcel containing 1315 Chesapeake Terrace, Sunnyvale, California) for the
Expansion Space is 50.0%. Tenant's Proportionate Share for the Industrial Complex Common Area Costs is increased during the Expansion Space Term from 28.63% (i.e., 15.78% as specified in the Original
Lease plus 12.85% specified in the First Amendment) to 49.53%. Tenant's Proportionate Share
shall be appropriately decreased following the first to occur of the following: (i) the expiration of the Extended Term (as defined in the First Amendment) if the Demised Premises is reduced
(i.e., Tenant shall not have validly exercised its Renewal Option set forth in Section 11 of the First Amendment), and (ii) the expiration of the Expansion Space Term (i.e., Tenant shall
have validly exercised its Renewal Option with respect to the Original Premises set forth in Section 11 of the First Amendment). 

        4.    Taxes, Other Real Estate Charges, Insurance Expenses and Common Area Charges.    For the
period commencing with the Expansion Effective Date and ending on the termination of the Expansion Space Term, Tenant shall pay for Tenant's Proportionate Share of Taxes, Other Real Estate Charges,
Insurance Expenses and Common Area Charges applicable to the Expansion Space in accordance with the terms of the Lease. Tenant's Proportionate Share of Taxes, Other Real Estate Charges and Common Area
Charges for the Expansion Space are estimated to be $15,897.60 per month. 

        Notwithstanding
anything to the contrary, so long as Tenant is not in default under the Lease, as amended hereby, Tenant shall be entitled to a fifty percent (50%) abatement of Tenant's
Proportionate Share of Taxes. Other Real Estate Charges, Insurance Expenses and Common Area Charges applicable to the Expansion Space, as described in this Amendment for six (6) full calendar
months of the Expansion Space Term, commencing with the first full calendar month of the Expansion Space Term (collectively, the "Abated Additional
Rent"). If Tenant defaults under the Lease at any time during the Expansion Space Term and fails to cure such default within any applicable cure period under the Lease, then
all Abated Additional Rent shall immediately become due and payable. Only Tenant's Proportionate Share of Taxes, Other Real Estate Charges, Insurance Expenses and Common Area Charges shall be abated
pursuant to this Section, as more particularly described herein, and all other 

2

 

costs
and charges specified in the Lease, as amended hereby, shall remain as due and payable pursuant to the provisions of the Lease. 

        5.    Additional Security Deposit.    Upon Tenant's execution hereof, Tenant shall pay
Landlord the sum of $68,889.60 which is added to and becomes part of the Security Deposit, if any, held by Landlord as provided under Section 8 of the Original Lease as security for payment of
rent and the performance of the other terms and conditions of the Lease by Tenant. Accordingly, simultaneous with the execution hereof, the Security Deposit is increased from $324,432.00 to
$393,321.16. 

        6.    Expansion Space Improvements.    Except as expressly provided for in this Amendment,
including, without limitation, Section 9 below, Tenant has inspected the Expansion Space and agrees to accept the same "as is" without any agreements, representations, understandings or
obligations on the part of Landlord to perform any alterations, repairs or improvements. Landlord shall perform improvements to the Expansion Space in accordance with the terms and conditions set
forth in Exhibit B hereto. 

        7.    Early Access to Expansion Space.    During any period that Tenant shall be permitted to
enter the Expansion Space prior to the date Landlord substantially completes the Expansion Space Improvements and tenders possession of the Expansion Space to Tenant for Tenant's permitted use, (e.g.,
to perform Exhibit Work, install cable, or perform alterations or improvements, if any), Tenant shall comply with all terms and provisions of the Lease, except, with respect to any period of such
early access prior to the Expansion Effective Date, Tenant shall not be required to comply with those provisions requiring payment of minimum guaranteed rental or Taxes, Other Real Estate Charges,
Insurance Expenses and Common Area Charges as to the Expansion Space. If Tenant takes possession of the Expansion Space prior to the date Landlord substantially completes the Expansion Space
Improvements and tenders possession of the Expansion Space to Tenant for any reason whatsoever (other than the performance of the Exhibit Work or other work in the Expansion Space described below in
this Section 7), such possession shall be subject to all the terms and conditions of the Lease and this Amendment, and Tenant shall pay minimum guaranteed rental and taxes, Other Real Estate
Charges, Insurance Expenses and Common Area Charges as applicable to the Expansion Space to Landlord on a per diem basis for each day of occupancy prior to the Expansion Effective Date. Subject to the
terms of the Lease, as amended hereby, Landlord grants Tenant the right to enter the Expansion Space, following full execution and delivery of this Amendment, the additional Security Deposit and
certificates of insurance for the Expansion Space to Landlord, solely for the purpose of construction of Tenant's trade show exhibits (the "Exhibit
Work"), provided that such Exhibit Work shall not be located near or otherwise occur proximate to Landlord's construction of the Expansion Space Improvements (as determined by
Landlord). In the event that Landlord reasonably determines that Tenant's performance of the Exhibit Work or other work in the Expansion Space set forth below in this Section 7 is compromising
Landlord's ability to timely and reasonably perform the Expansion Space Improvements or that Tenant is causing a dangerous situation for Landlord, Tenant or their respective contractors or employees,
Landlord, in its sole discretion, may (i) require that Tenant immediately vacate the Expansion Space and remove any personal property of Tenant contained therein, in which event Tenant shall so
vacate the Expansion Space and remove such property, or (ii) require that Tenant relocate (including Tenant's personal property) to another location in the Expansion Space (determined by
Landlord), in which event Tenant shall so relocate to such location. In addition to the foregoing, during such period of early access, Tenant may, (i) following installation of the ceiling grid
in the Expansion Space, install telecommunications and data cabling in the Expansion Space, and (ii) following Landlord's installation of the carpeting in the Expansion Space, install
equipment, furnishings and other personalty, all at Tenant's sole risk. Tenant shall be liable for any utilities or special services provided to Tenant during such period. Landlord may withdraw such
permission to enter the Expansion Space prior to the substantial completion of the Expansion Space Improvements and delivery of the Expansion Space to Tenant at any time that Landlord reasonably
determines that 

3

 

such
entry by Tenant is causing a dangerous situation for Landlord, Tenant or their respective contractors or employees, or if Landlord reasonably determines that such entry by Tenant is hampering or
otherwise preventing Landlord from proceeding with the completion of the Expansion Space Improvements described in Exhibit B attached hereto at
the earliest possible date. In any event, during any period of such early access, Tenant shall promptly vacate the Expansion Space (and remove any personal property therefrom) upon notice from
Landlord that Landlord is prepared to begin installation of carpeting in the Expansion Space (pursuant to the Plans). 

        8.    Access.    Tenant shall have access to the Expansion Space for Tenant and its employees,
agents, representatives, customers, visitors, invitees, licensees and contractors 24 hours per day/7 days per week, subject to the terms of the Lease, as amended hereby, and such
security or monitoring systems as
Landlord may reasonably impose, including, without limitation, sign-in procedures and/or presentation of identification cards. 

        9.    Base Building Systems.    However, notwithstanding the foregoing, Landlord agrees that
the base Building electrical, heating, ventilation and air conditioning, roof and plumbing systems located in the Expansion Space shall be in good working order as of the date Landlord delivers
possession of the Expansion Space to Tenant. Except to the extent caused by the acts or omissions of Tenant or any of Tenant's employees, agents, representatives, customers, visitors, invitees,
licensees, contractors, assignees or subtenants or by any alterations or improvements performed by or on behalf of tenant, if such systems are not in good working order as of the date possession of
the Expansion Space is delivered to Tenant and Tenant provides Landlord with notice of the same within sixty (60) days following the date Landlord delivers possession of the Expansion Space to
Tenant for Tenant's permitted use (excluding the early access period set forth in Section 7 above), Landlord shall be responsible for repairing or restoring the same; provided, however, that
the sixty (60) day period described above shall be increased to one hundred twenty (120) days for the roof only. In the event that any such system is not in good working order and Tenant
so notifies Landlord of the same during the stated time periods set forth above, Landlord shall in good faith make commercially reasonable efforts to bring such system into good working order within a
commercially reasonable time. 

        10.    Parking.    In addition to the parking rights Tenant has under the Lease, Tenant shall
have the right to the nonexclusive use of Tenant's Proportionate Share of parking spaces (3.5 unreserved parking spaces per 1,000 rentable square feet of the Expansion Space), which as of the date of
this Amendment shall be one hundred eighty-five (185) unreserved parking spaces (the "Expansion Space Parking Spaces"), for the
parking of such number of motor vehicles in the parking facilities of the Industrial Complex designated by Landlord; such rights are not transferable without Landlord's approval. The use of such
parking facilities for the Original Premises and/or the Expansion Space shall be subject to such rules and regulations as are adopted by Landlord from time to time for the use of such facilities.
Tenant acknowledges and agrees that, to the fullest extent permitted by law, Landlord shall not be responsible for any loss or damage to Tenant or Tenant's property (including, without limitation, any
loss or damage to any Tenant or of Tenant's trustees, members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members
of any such agents (collectively, the "Tenant Parties") automobile or the contents thereof due to theft, vandalism or accident) arising from or related
to use of any of the parking facilities, whether or not such loss or damage results from Landlord's or any Landlord Parties' (as defined in Section 12(d) below) negligence (provided that the
foregoing limitation on Landlord's liability shall not apply to Landlord's gross negligence or willful misconduct). Of the Expansion Space Parking Spaces, Tenant shall be authorized to identify
fifteen (15) "visitor parking" spaces, including ten (10) "Accuray Visitor Parking" spaces in accordance with Article III, Section F of Exhibit B of the Original
Lease. 

4

 

        11.    Other Provisions.    Landlord and Tenant agree that, effective as of the date of this
Amendment (unless different effective dates are specifically referenced in this Section), the Lease shall be amended in the following additional respects: 

        (a)   Signage. The following shall be added to the end of Section 13.1 of the Original Lease: "Notwithstanding the
foregoing, Landlord shall provide and install, at Landlord's expense, initial Building standard identification signage for Tenant in at the entry to the Expansion Building. Any changes thereto shall
be at Tenant's cost, except changes due solely to Landlord's error." 

        (b)   Sublease/Assignment Excess Rent. The second (2nd) sentence of Section 19.4 of Original Lease is
hereby deleted in its entirety and replaced with the following: "Notwithstanding anything contained in this Section, in the event that the rental due and payable by a sublessee (or combination of the
rental payable under such sublease plus any bonus or other consideration therefore or incident thereto) exceeds the rental payable under this lease, or if with respect to a permitted assignment,
permitted licensee or other transfer by Tenant permitted by Landlord, the consideration payable to Tenant by the assignee, licensee or other transferee exceeds the rental payable under this lease,
then Tenant shall be bound and obligated to pay Landlord fifty percent (50%) of such excess rental and other excess consideration with respect to the Original Premises and fifty percent (50%) of all
such excess rental and other excess consideration with respect to the Expansion Space within ten (10) days following receipt thereof by Tenant from such sublessee, assignee, licensee or other
transferee, as the case may be, after deducting any reasonable out-of-pocket brokerage commissions and legal fees incurred in connection with such assignment or sublease." 

        (c)   Option to Renew. The parties hereto acknowledge and agree that Section 11 of the First Amendment shall not apply
with respect to the Expansion Space. 

        (d)   Tenant Improvement Allowance. Tenant acknowledges that Landlord has satisfied its obligations under  Exhibit C of the First Amendment with respect to the Tenant
Improvement Allowance. 

        (e)   Landlord's Name. Landlord's name as set forth in Subsection 1.1(a) of the Original Lease is hereby deleted in its
entirety and replaced with the following: 

"Landlord:
BRCP Caribbean Portfolio, LLC, a Delaware limited liability company." 

        (f)    Landlord's Address. Landlord's address as set forth in Subsection 1.1 of the Original Lease is hereby deleted in its
entirety and replaced with the following: 

"BRCP
Caribbean Portfolio, LLC

c/o Broadreach Capital Partners, LLC

248 Homer Avenue

Palo Alto, California 94301" 

        (g)   Agent. The parties hereto acknowledge and agree there shall be no agent on behalf of Landlord, and thereby all references
to "Agent" under the Lease are hereby replaced with "Landlord". 

        (h)   Damages After Default. Section 22.2(c) of the Original Lease is hereby deleted in its entirety and replaced by the
following: 

"22.2(c)
Should Landlord terminate this Lease pursuant to the provisions of Section 21.1(a) hereof, Landlord shall have the rights and remedies of a Landlord provided by Section 1951.2
of the Civil Code of the State of California, or any successor code sections. Upon such termination, in addition to any other rights and remedies to which Landlord may be entitled under applicable law
or at equity, Landlord shall be entitled to recover from Tenant: (a) the 

5

 

worth
at the time of award of the unpaid Rent and other amounts which had been earned at the time of termination; (b) the worth at the time of award of the amount by which the unpaid rent and
other amounts that would have been earned after the date of termination until the time of award exceeds the amount of such rent loss that Tenant proves could have been reasonably avoided;
(c) the worth at the time of award of the amount by which the unpaid Rent and other amounts for the balance of the Term after the time of award exceeds the amount of such rent loss that the
Tenant proves could be reasonably avoided; and (d) any other amount and court costs necessary to compensate Landlord for all detriment proximately caused by Tenant's failure to perform Tenant's
obligations under this Lease or which, in the ordinary course of things, would be likely to result therefrom. The "worth at the time of award" as used in clauses (a) and (b) above shall
be computed at the Default Rate (defined below). The "worth at the time of award" as used in clause (c) above shall be computed by discounting such amount at the Federal Discount Rate of the
Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). If this Lease provides for any periods during the Term during which Tenant is not required to pay minimum guaranteed
rent or if Tenant otherwise receives a rent concession, then upon the occurrence of an event of default, Tenant shall owe to Landlord the full amount of such minimum guaranteed rent or value of such
rent concession, plus interest at the applicable interest rate, calculated from the date that such minimum guaranteed rent or rent concession would have been payable." 

        (i)    Waiver. TENANT HEREBY WAIVES ANY AND ALL RIGHTS CONFERRED BY SECTION 3275 OF THE CIVIL CODE OF CALIFORNIA AND BY SECTIONS
1174 (c) AND 1179 OF THE CODE OF CIVIL PROCEDURE OF CALIFORNIA AND ANY AND ALL OTHER LAWS AND RULES OF LAW FROM TIME TO TIME IN EFFECT DURING THE LEASE TERM PROVIDING THAT TENANT SHALL HAVE ANY
RIGHT TO REDEEM, REINSTATE OR RESTORE THIS LEASE FOLLOWING ITS TERMINATION BY REASON OF TENANT'S BREACH. 

        (j)    Common Area Costs. Tenant's Proportionate Share of Common Area Costs with respect to the Expansion Space only shall not
include any cost or expense related to removal, cleaning, abatement or
remediation of "hazardous materials" in or about the Common Areas of the Expansion Building, including, without limitation, hazardous substances in the ground water or soil, except to the extent such
removal, cleaning, abatement or remediation is related to the general repair and maintenance of the Common Areas. The foregoing exclusion shall not apply to Tenant's Proportionate Share obligations to
the Common Areas of the Original Premises. Except as otherwise stated in this subsection (j) and/or in this Amendment, the terms and conditions of the Lease shall remain unchanged and in full
force and effect. 

        (k)   Assignment. If, during the Term, Tenant reincorporates its state of formation from the State of California to the State
of Delaware, Landlord's consent under the Lease shall not be required for such transfer if all of the following conditions precedent are satisfied to Landlord's reasonable satisfaction:
(i) such transfer occurs solely in connection with any bona fide corporate transaction for the benefit of Tenant, (ii) Tenant's assets shall not materially decrease and Tenant's
liabilities shall not materially increase as a result or otherwise in connection with such reincorporation, (iii) Tenant provides to Landlord written notice no more than ten
(10) business days after such reincorporation, and (iv) there is no Default by Tenant at the time of the transfer. 

        12.    Miscellaneous.    

        (a)   This
Amendment, including Exhibit A and Exhibit B hereto,
sets forth the entire agreement between the parties with respect to the matters set forth herein. There have been no additional oral or written representations or agreements. Unless specifically set
forth in this Amendment, under no circumstances shall Tenant be entitled to any rent abatement, improvement allowance, leasehold 

6

 

improvements,
or other work to the Premises, or any similar economic incentives that may have been provided Tenant in connection with entering into the Lease. 

        (b)   Except
as herein modified or amended, the provisions, conditions and terms of the Lease shall remain unchanged and in full force and effect. In the case of any
inconsistency between the provisions of the Lease and this Amendment, the provisions of this Amendment shall govern and control. The capitalized terms used in this Amendment shall have the same
definitions as set forth in the Lease to the extent that such capitalized terms are defined therein and not redefined in this Amendment. 

        (c)   Submission
of this Amendment by Landlord is not an offer to enter into this Amendment but rather is a solicitation for such an offer by Tenant. Landlord shall not be
bound by this Amendment until Landlord has executed and delivered the same to Tenant. 

        (d)   Tenant
hereby represents to Landlord that Tenant has dealt with no broker in connection with this Amendment other than Wayne Mascia Associates
("Tenant's Broker"). Tenant agrees to indemnify and hold Landlord, its trustees, members, principals, beneficiaries, partners, officers, directors,
employees, mortgagee(s) and agents, and the respective principals and members of any such agents (collectively, the "Landlord Parties") harmless from
all claims of any brokers, except Tenant's Broker, claiming to have represented Tenant in connection with this Amendment. Landlord hereby represents to Tenant that Landlord has dealt with no broker in
connection with this Amendment other than Colliers International ("Landlord's Broker"). Landlord agrees to indemnify and hold Tenant harmless from all
claims of any brokers, except Landlord's Broker, claiming to have represented Landlord in connection with this Amendment. Landlord shall pay broker leasing commissions to Tenant's Broker and
Landlord's Broker pursuant to a separate agreement and the parties hereto acknowledge and agree that this provision shall supersede any provision to the contrary in the Lease. 

        (e)   Each
signatory of this Amendment represents hereby that he or she has the authority to execute and deliver the same on behalf of the party hereto for which such
signatory is acting. Tenant hereby represents and warrants that neither Tenant, nor any persons or entities holding any legal or beneficial interest whatsoever in Tenant, are (i) the target of
any sanctions program that is established by Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury
("OFAC"); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App. § 5, the International
Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any
Executive Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC: "List of Specially Designated Nationals and Blocked Persons."
If the foregoing representation is untrue at any time during the Term, an uncured event of default under the Lease will be deemed to have occurred, without the necessity of notice to Tenant. 

        (f)    Redress
for any claim against Landlord under the Lease and this Amendment shall be limited to and enforceable only against and to the extent of Landlord's interest in
the Building. The obligations of Landlord under the Lease are not intended to and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its trustees or
board of directors and officers, as the case may be, its investment manager, the general partners thereof, or any beneficiaries, stockholders, employees, or agents of Landlord or the investment
manager. 

[SIGNATURES ARE ON FOLLOWING PAGE]

7

 

        IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Amendment as of the day and year first above written, 

	 	 	LANDLORD:
	

 	
 	
BRCP CARIBBEAN PORTFOLIO, LLC,

a Delaware limited liability company
	

 	
 	

By:	

/s/  JOHN FOSTER      

	

 	
 	

Name:	

John Foster

	

 	
 	

Title:	

Managing Director

	

 	
 	
TENANT:
	

 	
 	
ACCURAY INCORPORATED,

a California corporation
	

 	
 	

By:	

/s/  CHRIS A. RAANES 9/27/2006      

	

 	
 	

Name:	

Chris A. Raanes

	

 	
 	

Title:	

Chief Operating Officer

	

 	

 	

By:	

/s/  DARREN J. MILLIKEN      

	

 	
 	

Name:	

Darren J. Milliken

	

 	
 	

Title:	

General Counsel
 9/27/2006

8

   EXHIBIT A  

OUTLINE AND LOCATION OF EXPANSION SPACE  

        This Exhibit is attached to and made a part of the Second Amendment to Industrial Complex Lease dated September 25, 2006 by and between  BRCP CARIBBEAN
PORTFOLIO, LLC, a Delaware limited liability company ("Landlord") and ACCURAY INCORPORATED, a California
corporation ("Tenant"). 

  

A-1

 

  

A-2

   EXHIBIT B  

EXPANSION SPACE IMPROVEMENTS  

        This Exhibit is attached to and made a part of the Second Amendment to Industrial Complex Lease dated September 25, 2006 by and between  BRCP CARIBBEAN
PORTFOLIO, LLC, a Delaware limited liability company ("Landlord") and  ACCURAY INCORPORATED, a California corporation ("Tenant"). Capitalized terms not otherwise defined in
this Exhibit B shall have the meaning given to such terms in the Amendment of which this  Exhibit B is a part. 

	1.
	Landlord
shall perform improvements to the Expansion Space in accordance with the plans prepared by aai Design, dated July 27, 2006 (the
"Plans"). The improvements to be performed by Landlord in accordance with the Plans are hereinafter referred to as the
"Expansion Space Improvements." It is agreed that construction of the Expansion Space Improvements will be completed at Landlord's sole cost and expense
(subject to the terms of Section 2 below) using Building standard methods, materials and finishes and as otherwise reasonably determined by Landlord (provided however, that (i) with
respect to Landlord's obligation to install new carpeting within the Expansion Space, Landlord shall install the following non-Building standard carpet pursuant to the Plans: Manufacturer:
Crossley, Style: Moraine 30363, Color: Mont Blanc 03658, 28 ounce, Pile: Dynex SD Nylon, and (ii) with respect to any Landlord obligation to paint the interior walls of the Expansion Space,
Landlord shall use the following Kelly Moore Paints: Light Blue (1686-222 Medium Tint, 05-0677 BA-Color), Dark Blue (1010-333 Deep Tint,
04-0167 BA-Color), Light Green (1686-222 Medium Tint, 00-2416 BA-Color) and White (1686-121, 02-0014
BA-Color). Landlord shall substantially complete the Expansion Space improvements. For purposes of the foregoing, "substantially complete" shall mean that Landlord shall obtain from the
appropriate governmental authorities, with respect to the Expansion Space Improvements performed by Landlord or its contractors in the Expansion Space, all approvals necessary for the occupancy of the
Premises. Landlord shall enter into a direct contract for the Expansion Space Improvements with a general contractor selected by Landlord. In addition, Landlord shall have the right to select and/or
approve of any subcontractors used in connection with the Expansion Space Improvements. Landlords supervision or performance of any work for or on behalf of Tenant shall not be deemed a representation
by Landlord that such Plans or the revisions thereto comply with applicable insurance requirements or that the improvements constructed in accordance with the Plans and any revisions thereto will be
adequate for Tenant's use, it being agreed that Tenant shall be responsible for the configuration of the Expansion Space and the placement of Tenant's furniture, appliances and equipment therein.
Landlord, at its sole cost and expense, shall be responsible for correcting any violations of Federal, City and State or local laws, regulations or ordinances with respect to the Expansion Space
improvements prior to the installation of any furniture, equipment and other personal property of Tenant and, unless and only to the extent contributed to or exacerbated by Tenant or any of its
contractors, agents, employees or invitees, Tenant shall have no liability for any fines incurred by Landlord in connection with any such violation. Notwithstanding the foregoing, so long as the same
does not prohibit Tenant from using the Expansion Space for the permitted use, Landlord shall have the right to contest any alleged violation in good faith, including, without limitation, the right to
apply for and obtain a waiver or deferment of compliance, the right to assert any and all defenses allowed by law and the right to appeal any decisions, judgments or rulings to the fullest extent
permitted by law. Landlord, after the exhaustion of any and all rights to appeal or contest, will make all repairs, additions, alterations or improvements necessary to comply with the terms of any
final order or judgment. Notwithstanding the foregoing, Tenant, not Landlord, shall be responsible for the correction of any violations that arise out of or in connection with any claims brought under
any provision of the Americans with Disabilities Act other than Title III (compliance with Title III of the Americans with Disabilities Act shall be Landlord's responsibility pursuant to this
Section 1 above regarding Landlord's 

B-1

 

obligation
to construct the Expansion Space Improvements in accordance with applicable Federal, City and State laws), the specific nature of Tenant's business in the Expansion Space (other than
general office use), the acts or omissions of Tenant, its agents, employees or contractors, Tenant's arrangement of any furniture, equipment or other property in the Expansion Space, any repairs,
alterations, additions or improvements performed by or on behalf of Tenant (other than the Expansion Space
Improvements) and any design or configuration of the Expansion Space specifically requested by Tenant after being informed that such design or configuration may not be in strict compliance with laws. 

	2.
	If
Tenant shall request any revisions to the Plans, Landlord shall have such revisions prepared at Tenant's sole cost and expense and Tenant shall reimburse Landlord for the cost of
preparing any such revisions to the Plans, plus any applicable state sales or use tax thereon, upon demand. Promptly upon completion of the revisions, Landlord shall notify Tenant in writing of the
increased cost in the Expansion Space Improvements, if any, resulting from such revisions to the Plans. Tenant, within one business day, shall notify Landlord in writing whether it desires to proceed
with such revisions. In the absence of such written authorization, Landlord shall have the option to continue work on the Expansion Space disregarding the requested revision. Tenant shall be
responsible for any delay caused by Tenant in completion of the Expansion Space resulting from any revision to the Plans. If such revisions result in an increase in the cost of Expansion Space
Improvements, such increased costs, plus any applicable state sales or use tax thereon, shall be payable by Tenant upon demand. Notwithstanding anything herein to the contrary, all revisions to the
Plans shall be subject to the approval of Landlord.

	3.
	In
addition the Expansion Space Improvements, Landlord shall perform base Building system restoration and repairs in the Expansion Space required of Landlord pursuant to
Section 9 of this Amendment.

	4.
	This
Exhibit B shall not be deemed applicable to any additional space added to the Expansion Space at any time or from time to
time, whether by any options under the Lease, as amended hereby, or otherwise, or to any portion of the Premises or any additions to the Premises in the event of a renewal or extension of the Term of
the Lease, whether by any options under the Lease or otherwise, unless expressly so provided in the Lease or any amendment or supplement to the Lease, as amended hereby. 

B-2

QuickLinks

INDUSTRIAL COMPLEX LEASE (California)

INDEX TO LEASE

EXHIBIT "B" CONSTRUCTION; TENANT ACCEPTANCE OF SPACE "AS IS"

EXHIBIT "B-1" DIAGRAM OF VISITOR PARKING SPACES [See Attached]

EXHIBIT "C" TENANT CONSTRUCTION RULES AND REGULATIONS

EXHIBIT "D" RIGHT OF FIRST OPPORTUNITY

EXHIBIT "E" RENEWAL OPTION

FIRST AMENDMENT TO INDUSTRIAL COMPLEX LEASE

RECITALS

WITNESSETH

SECOND AMENDMENT TO INDUSTRIAL COMPLEX LEASE

RECITALSQuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.2  

 
 

STANDARD INDUSTRIAL LEASE
  (Multiple Tenant—Tenant Pays its Percentage Share of Operating Expenses,
  Real Property Taxes and Insurance Costs—NO Base Year)    

1.     BASIC LEASE PROVISIONS.  

	 	1.1	 	DATE:	 	June 30, 2005
	 	 	 	 	 	 	 
	 	1.2	 	LANDLORD:	 	The Realty Associates Fund III, L.P.,

a Delaware limited partnership
	
 	
1.3	
 	

TENANT:	
 	

Accuray Incorporated,

a California corporation
	
 	
1.4	
 	

PREMISES ADDRESSES:	
 	

1306-1310 Orleans Drive, Sunnyvale, California
	
 	
1.5	
 	

APPROXIMATE LEASABLE AREA OF PREMISES:

(in square feet)
 	
 	

50,000
	
 	
1.6	
 	

USE:	
 	

Manufacturing, assembly, research and development and general office purposes
	
 	
1.7	
 	

TERM:	
 	

Commencement Date through the date that is six (6) years after the Rent Commencement Date (the "Initial Term")
	
 	
1.8	
 	

COMMENCEMENT DATE:	
 	

July 1, 2005
	
 	

 	
 	
RENT COMMENCEMENT DATE:	
 	

The first to occur of (a) substantial completion of the Tenant Improvements (as defined in the Work Letter Agreement), (b) Lessee's occupancy of the Premises for the purpose of operating its business (as opposed to constructing
the Tenant Improvements), or (c) January 1, 2006.
	
 	
1.9	
 	

MONTHLY BASE RENT:	
 	

Prior to Rent Commencement Date:	

$0;
	
 	

 	
 	

 	
 	

Rent Commencement Date through	

 
	 	 	 	 	 	12th full calendar month:	$42,500.00;
	 	 	 	 	 	13th month through 24th month:	$44,000.00;
	 	 	 	 	 	25th month through 36th month:	$45,500.00;
	 	 	 	 	 	37th month through 48th month:	$47,000.00;
	 	 	 	 	 	49th month through 60th month:	$48,500.00;
	 	 	 	 	 	 	          and
	 	 	 	 	 	61st month through 72nd month	$50,000.00.
	
 	
1.10	
 	

BASE RENT PAID UPON EXECUTION:	
 	

$42,500.00
	 	 	 	 	 	 	 

1

 

	
 	

 	
 	
APPLIED TO:

(insert month(s))	
 	

First full month of term of Lease
	
 	
1.11	
 	

TENANT'S PERCENTAGE SHARE:	
 	

See section 6.4
	
 	
1.12	
 	

SECURITY DEPOSIT:	
 	

$50,000.00
	
 	
1.13	
 	

NUMBER OF PARKING SPACES:	
 	

151
	
 	
1.14	
 	

REAL ESTATE BROKER:	
 	

 
	
 	

 	
 	

                LANDLORD:	
 	

CB Richard Ellis, Inc.
	
 	

 	
 	

                TENANT:	
 	

Wayne Mascia and Associates
	
 	
1.15	
 	

EXHIBITS ATTACHED TO LEASE:	
 	

Exhibit A—"Premises;"

Exhibit B—Intentionally deleted;

Exhibit C—"Rules and Regulations;"

Exhibit D—"Form of HazMat Certificate";

Exhibit E—"Work Letter Agreement";

Exhibit F—"Addendum to Lease"
	
 	
1.16	
 	

ADDRESSES FOR NOTICES:	
 	

 
	
 	

 	
 	

                LANDLORD:	
 	

The Realty Associates Fund III, L.P.

c/o TA Associates Realty

1301 Dove Street, Suite 860

Newport Beach, California 92660

Attn: Asset Manager/Orleans
	
 	

 	
 	

                WITH A COPY TO:	
 	

CB Richard Ellis, Inc.

225 West Santa Clara Street, Suite 1050

San Jose, California 95113

Attention: Property Manager/Orleans
	
 	

 	
 	

                TENANT:	
 	

Accuray Incorporated

1310 Chesapeake Terrace

Sunnyvale, California 94089

Attention: Chief Operating Officer

2.     Premises.  

	2.1
	ACCEPTANCE.    Landlord leases to Tenant, and Tenant leases from Landlord, the Premises, to have and
to hold for the term of this Lease, subject to the terms, covenants and conditions of this Lease. The Premises is depicted on Exhibit "A" attached hereto. The Premises depicted on
Exhibit "A" is all or a part of a building (the "Building") and may contain areas outside of the Building to the extent such areas are
specifically identified on Exhibit "A" as being a part of the Premises. The number of square feet set forth in section 1.5 is an approximation, and the Base Rent shall not be
changed if the actual number of square feet in the Premises is different than the number of square feet set forth in section 1.5.

	2.2
	CONDITION.    

	(a)
	Except
as otherwise expressly provided in this Lease, Tenant accepts the Premises in its condition on the date Landlord delivers possession of the Premises to Tenant
(the "Delivery Date"), subject to all applicable laws, ordinances, regulations, covenants, conditions, restrictions and easements, and except as
may be otherwise expressly provided 

2

 

in
this Lease, Landlord shall not be obligated to make any repairs or alterations to the Premises. 

	(b)
	Landlord
represents and warrants to Tenant that on the Delivery Date the following parts of the Premises shall be in good working order: (a) plumbing systems,
(b) electrical systems, (c) the roof, (d) all HVAC units, (e) mechanical systems and (f) lighting systems (collectively, the "Building
Systems").

	(c)
	Landlord
warrants that on the Delivery Date the Building will comply with the requirements of the Americans With Disabilities Act and Title 24 of the California Code of Regulation
(collectively, "ADA Requirements") that are in effect as of the Delivery Date. In determining whether or not the Building complies with the ADA
Requirements in effect on the Delivery Date, Landlord and Tenant shall assume that Tenant will occupy the Premises in its "as is" condition and without respect to any modification of the Premises to
be made by Tenant (e.g., prior to the construction of the Tenant Improvements (as defined in the Work Letter Agreement) and prior to the construction of any Alterations
(as defined below)).

	(d)
	In
the event that it is determined that a warranty set forth in (b) or (c) above is untrue, Landlord shall not be in default under the Lease if after Landlord receives
written notice of the representation or warranty that is untrue, Landlord promptly takes the actions, at Landlord's sole expense, necessary to put the applicable Building System in working order or to
comply with the applicable ADA Requirement. The representations and warranties set forth in (b) and (c) above shall apply only to the condition of the Building Systems and compliance
with the ADA Requirements as of the Delivery Date, and shall not apply to any point in time thereafter. Tenant shall notify Landlord in writing (the "Warranty
Notice") within ninety (90) days after the Rent Commencement Date with respect to all ADA Requirements and Building Systems except the roof, and within one hundred
eighty (180) days after the Rent Commencement Date with respect to the roof, time being of the essence (a "Notice Date"), of each way, if
any, that the foregoing representations and warranties ware untrue on the Delivery Date (an "Untrue Warranty"). A Warranty Notice shall state the
specific way in which one or more Building System was not in working order on the Delivery Date or in which the Building did not comply with ADA Requirements on the Delivery Date. Subject to
Landlord's obligations under section 11, Landlord shall have no responsibility to repair any Building System or to comply with any ADA Requirement unless Tenant notifies Landlord on or before
the applicable Notice Date in a Warranty Notice of the Untrue Warranty, and if Tenant notifies Landlord that a Building System was not in working order or that the Building did not comply with an ADA
Requirement after the applicable Notice Date, Landlord shall have no obligation pursuant to this section to repair the Building System that is not in working order or to comply with the ADA
Requirement.

 

	2.3
	COMMON AREAS.    Landlord hereby grants to Tenant for the benefit of Tenant and its employees,
suppliers, shippers, customers and invitees during the term of this Lease, the nonexclusive right to use, in common with others entitled to such use (including Landlord), the Common Areas
(as hereinafter defined) as they exist from time to time, subject to all rights reserved by Landlord hereunder and under the terms of all rules and regulations promulgated by Landlord from time
to time with respect thereto. Landlord reserves the right from time to time to (a) make changes in the Common Areas, including, without limitation, changes in location, size, shape and number
of driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas and walkways; (b) close temporarily any of the
Common Areas for maintenance purposes so long as reasonable access to the Premises remain available; (c) construct additional buildings, 

3

 

parking
areas, loading dock facilities and other improvements within the Common Areas; and (d) do and perform such other acts and make such other changes in, to or with respect to the Common
Areas as Landlord may deem appropriate; provided, however, any such permanent changes or alterations
that substantially and adversely affect parking, loading or unloading or substantially and adversely interfere with Tenant's use of the Premises or the Common Areas (as defined below) shall
require Tenant's prior written consent, which consent shall not be unreasonably withheld or delayed. As used herein, the term "Common Areas" means all
areas and facilities outside the Premises and within the exterior boundary lines of the land owned by Landlord that are provided and designated by Landlord as such from time to time for general
nonexclusive use of Tenant and others, including, if designated by Landlord as Common Areas, parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways and
landscaped areas. The Premises, the Building, the Common Areas, the land upon which the same are located, along with all other buildings and improvements thereon, are herein collectively referred to
as the "Project." Under no circumstances shall the right herein granted to use the Common Areas be deemed to include the right to store any property,
temporarily or permanently, in the Common Areas, including, without limitation, the storage of trucks or other vehicles. Any such storage shall be permitted only by the prior written consent of
Landlord, which consent may be revoked at any time. In the event that any unauthorized storage shall occur then Landlord shall have the right, without notice, in addition to such other rights and
remedies that it may have, to remove the property and charge the cost to Tenant, which cost shall be immediately payable upon demand by Landlord. 

3.     TERM.  

	3.1
	TERM AND COMMENCEMENT.    The term and Commencement Date of this Lease are as specified in
sections 1.7 and 1.8.

	3.2
	TENDER OF POSSESSION.    Possession of the Premises shall be deemed tendered to Tenant when Landlord
has offered Tenant possession of the Premises. 

4.     USE.  

	4.1
	PERMITTED USE.    The Premises shall be used only for the purpose described in section 1.6
and for no other purpose. Landlord makes no representation or warranty that Tenant's use is permitted by applicable zoning laws or other laws and regulations. In no event shall any portion of
the Premises be used for retail sales. Tenant shall not initiate, submit an application for, or otherwise request, any land use approvals or entitlements with respect to the Premises or any other
portion of the Project, including, without limitation, any variance, conditional use permit or rezoning, without first obtaining Landlord's prior written consent, which may be given or withheld in
Landlord's sole discretion. Tenant shall not (a) permit any animals or pets to be brought to or kept in the Premises, (b) install any antenna, dish or other device on the roof of the
Building or outside of the Premises, (c) make any penetrations into the roof of the Building, (d) place loads upon floors, walls or ceilings in excess of the load such items were
designed to carry, (e) place or store, nor permit any other person or entity to place or store, any property, equipment, material, supplies or other items outside of the Building in which the
Premises is located or (f) change the exterior of the Premises or the Building in which the Premises is located. Tenant acknowledges that Landlord has made no representation or warranty as to
the suitability of the Premises for the conduct of Tenant's business, and Tenant waives any implied warranty that the Premises are suitable for Tenant's intended purposes.

	4.2
	COMPLIANCE WITH LAWS.    Tenant shall, at Tenant's sole expense, promptly comply with all applicable
laws, ordinances, rules, regulations, orders, certificates of occupancy, conditional use or other permits, variances, covenants, conditions, restrictions, easements, the reasonable 

4

 

recommendations
of Landlord's engineers or other consultants, and requirements of any fire insurance underwriters, rating bureaus or government agencies, now in effect or which may hereafter come into
effect, whether or not they reflect a change in policy from that now existing, during the term or any part of the term hereof, relating in any manner to the Premises or the occupation and use by
Tenant of the Premises ("Legal Requirements"). Tenant shall, at Tenant's sole expense, comply with all requirements of the Americans With Disabilities
Act that relate to the Premises, and all federal, state and local laws and regulations governing occupational safely and health. Tenant shall not permit any objectionable or unpleasant odors, smoke,
dust, gas, noise or vibrations to emanate from the Premises, or take any other action that would constitute a nuisance or would disturb, unreasonably interfere with or endanger Landlord or any other
tenants of the Project. Tenant shall obtain, at its sole expense, any permit or other governmental authorization required to operate its business from the Premises. Landlord shall not be liable for
the failure of any other tenant or person to abide by the requirements of this section or to otherwise comply with applicable laws and regulations, and Tenant shall not be excused from the performance
of its obligations under this Lease due to such a failure. Notwithstanding the foregoing, in no event shall Tenant be required to make changes required by Legal Requirements to the structural
components of the Premises ("Landlord Changes"), unless such changes are required due to Tenant's negligence or misuse of the Premises, Tenant's
alteration of the Premises or Tenant's particular use of the Premises. If the changes are required due to Tenant's negligence or misuse of the Premises, Tenant's alteration of the Premises or Tenant's
particular use of the Premises, Landlord shall make such changes and Tenant shall reimburse Landlord for the reasonable cost thereof. With respect to other Landlord Changes, Landlord shall cause same
to be completed, and subject to the other limitations contained in this Lease, the cost thereof may be included in Operating Expenses. 

	4.3
	LANDLORD REPRESENTATION.    As of the date set forth in section 1.1, Landlord represents and
warrants to Tenant that to Landlord's actual knowledge it does not know of any material violations of laws or regulations applicable to the Premises that would materially and adversely affect Tenant's
use of the Premises. Landlord's representation shall not apply to alterations or improvements to be made by Tenant to the Premises or the use for which Tenant will occupy the Premises. For purposes of
this section, Landlord's actual knowledge shall mean the actual knowledge of Scott Amling without duty of investigation. Tenant acknowledges that the improvements comprising the Premises may have been
constructed prior to the enactment of some existing laws and regulations and may have been constructed without building permits and the fact that such improvements do not now comply with some existing
laws and regulations shall not constitute the breach of this warranty or obligate Landlord to modify such improvements.  

	5.
	BASE RENT.    Tenant shall pay Base Rent in the amount set forth on the first page of this Lease. The
first month's Base Rent, the Security Deposit, and the first monthly installment of estimated Operating Expenses (as hereafter defined) shall be due and payable on the date this Lease is
executed by Tenant, and Tenant promises to pay to Landlord in advance, without demand, deduction or set-off, monthly installments of Base Rent on or before the first day of each calendar
month succeeding the Rent Commencement Date. Payments of Base Rent for any fractional calendar month shall be prorated. All payments required to be made by Tenant to Landlord hereunder shall be
payable at such address as Landlord may specify from time to time by written notice delivered in accordance herewith. Tenant shall have no right at any time to abate, reduce, or set off any rent due
hereunder except where expressly provided in this Lease. 

5

 

6.     OPERATING EXPENSE PAYMENTS  

	6.1
	OPERATING EXPENSES.    Tenant shall pay Tenant's Percentage Share (as defined below) of the
Operating Expenses for the Project. For the purposes of this Lease, and subject to the exclusions described in section 6.2, the term "Operating
Expenses" shall mean all expenses and disbursements of every kind (subject to the limitations set forth below) which Landlord incurs, pays or becomes obligated to pay in
connection with the ownership, operation, and maintenance of the Project (including the associated Common Areas), including, but not limited to, the following:

	(a)
	wages
and salaries (including management fees) of all employees, agents, consultants and other individuals or entities engaged in the operation, repair, replacement, maintenance, and
security of the Project, including taxes, insurance and benefits relating thereto;

	(b)
	all
supplies and materials used in the operation, maintenance, repair, replacement, and security of the Project;

	(c)
	annual
cost of all Capital improvements (as defined below) made to the Project which although capital in nature can reasonably be expected to reduce the normal operating costs
of the Project, as well as all Capital improvements made in order to comply with any law now or hereafter promulgated by any governmental authority, as amortized over the useful economic life of such
improvements as determined by Landlord in its reasonable discretion (without regard to the period over which such improvements may be depreciated or amortized for federal income tax purposes). Capital
improvements shall not include any expenditure incurred by Landlord to maintain the structural elements of the roof of the Building (excluding the roof membrane), the structural soundness of the
foundation of the Building, the structural elements of the exterior walls of the Building and the structural elements of existing interior load-bearing walls of the Building (excluding any
load-bearing walls constructed by Tenant, which Tenant shall maintain and repair at Tenant's sole expense), and the cost of such items shall be paid by Landlord, at Landlord's sole cost
and expense;

	(d)
	cost
of all utilities paid by Landlord;

	(e)
	cost
of any insurance or insurance-related expense applicable to the Project and Landlord's personal property used in connection therewith, including, but not limited to, the
insurance costs described in section 10.2;

	(f)
	cost
of repairs, replacements and general maintenance of the Project (including all truck court areas, paving and parking areas, Common Area lighting facilities, fences, gates, water
lines, sewer lines, rail spur areas and any other item Landlord is obligated to repair or maintain), other than costs necessary to assure the structural soundness of the roof, foundation and exterior
walls of the Project which are payable solely by Landlord under section 11;

	(g)
	cost
of service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement or security of the Project (including, without limitation,
alarm service, exterior painting, trash collection, snow, ice, debris and waste removal and landscape maintenance);

	(h)
	the
cost of all accounting fees, management fees, legal fees and consulting fees attributable to the operation, ownership, management, maintenance or repair of the Project; 

6

 

	(i)
	payments
made by Landlord under any easement, license, operating agreement, declaration, restrictive covenant or other agreement relating to the sharing of costs among property
owners;

	(j)
	the
cost of all business licenses, permits or similar fees relating to the operation, ownership, repair or maintenance of the Project; and

	(k)
	the
cost of any other item the cost of which is stated in this Lease to be an Operating Expense. 

For
purposes of this Lease, a "Capital Improvement" shall be an improvement to the Project that Landlord is obligated or permitted to make pursuant to
this Lease, the cost of which is not fully deductible in the year incurred in accordance with generally accepted accounting principles; provided,  however,
that, at Landlord's option, the following items shall be treated as expenses and not Capital Improvements: (i) the cost of painting all
or part of the Project, (ii) the cost of resurfacing and restriping roadways and parking areas and (iii) the cost of any items Tenant is obligated to pay for pursuant to
section 12.1 that Landlord elects, in its sole discretion, to include in Operating Expenses. Real Property Taxes (as defined below) shall be reimbursed to Landlord as provided below and
shall not be treated as an Operating Expense. References to facilities, services, utilities or other items in this section shall not impose an obligation on Landlord to have said facilities or to
provide said services unless such facilities and services already exist at the Project. 

	6.2
	OPERATING EXPENSE EXCLUSIONS.    Notwithstanding anything to the contrary contained herein, for
purposes of this Lease, the term "Operating Expenses" shall not include the following: (i) costs (including permit license and inspection fees) incurred for tenant improvement for other tenants
within the Project; (ii) legal and auditing fees (other than those fees reasonably incurred in connection with the maintenance and operation of all or any portion of the Project), leasing
commissions, advertising expenses and similar costs incurred in connection with the leasing of the Project; (iii) depreciation of the Building or any other improvements situated within the
Project; (iv) any items for which Landlord is actually reimbursed by insurance or by direct reimbursement by any other tenant of the Project; (v) costs of repairs or other work
necessitated by fire, windstorm or other casualty (excluding any deductible) and/or costs of repairs or other work necessitated by the exercise of the right of eminent domain to the extent insurance
proceeds or a condemnation award, as applicable, is actually received by Landlord for such purposes; provided, such costs of repairs or other work shall
be paid by the parties in accordance with the provisions of sections 11 and 12, below; (vi) other than any interest charges for Capital Improvements referred to in
section 6.1(c) hereinabove, any interest or payments on any financing for the Building or the Project and interest and penalties incurred as a result of Landlord's late payment of any invoice;
(vii) costs associated with the investigation and/or remediation of Hazardous Materials (hereafter defined) present in, on or about any portion of the Project, unless such costs and expenses
are the responsibility of Tenant as provided in section 27 hereof, in which event such costs and expenses shall be paid solely by Tenant in accordance with the provisions of section 27
hereof; (viii) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in the Project to the extent the same exceeds the costs of
such by unaffiliated third parties on a competitive basis; (ix) any payments under a ground lease or master lease; and (x) except as provided in section 6.1(c) and (j)
above, the cost of Capital Improvements.

	6.3
	PAYMENT.    Tenant's Percentage Share of Operating Expenses shall be payable by Tenant within thirty
(30) days after a reasonably detailed statement of actual expenses is presented to Tenant by Landlord. At Landlord's option, however, Landlord may, from time to time, estimate what Tenant's
Percentage Share of Operating Expenses will be, and the same shall be 

7

 

payable
by Tenant monthly during each calendar year of the Lease term, on the same day as the Base Rent is due hereunder. In the event that Tenant pays Landlord's estimate of Tenant's Percentage Share
of Operating Expenses, Landlord shall use its best efforts to deliver to Tenant within one hundred eighty (180) days after the expiration of each calendar year a reasonably detailed statement
(the "Statement") showing Tenant's Percentage Share of the actual Operating Expenses incurred during such year. If Landlord has not delivered a
Statement to Tenant within one hundred fifty (150) days after the expiration of the preceding calendar year, Tenant shall have the right to give Landlord written notice of such failure
(a "Tenant Notice"), and Landlord's failure to provide the Statement to Tenant within thirty (30) days after Landlord receives the Tenant
Notice shall be a breach by Landlord of its obligations under this Lease. To be effective, the Tenant Notice must specifically state that Landlord's failure to provide the Statement to Tenant within
thirty (30) days after Landlord's receipt of the Notice will constitute a breach of the Lease by Landlord and the Tenant Notice must refer specifically to this section of the Lease. Landlord's
failure to deliver the Statement to Tenant within said period shall not constitute Landlord's waiver of its right to collect said amounts or otherwise prejudice Landlord's rights hereunder. If
Tenant's payments under this section during said calendar year exceed Tenant's Percentage Share as indicated on the Statement, Tenant shall be entitled to credit the amount of such overpayment against
Base Rent and Tenant's Percentage Share of Operating Expenses next falling due. If Tenant's payments under this section during said calendar year were less than Tenant's Percentage Share as indicated
on the Statement, Tenant shall pay to Landlord the amount of the deficiency within thirty (30) days after delivery by Landlord to Tenant of the Statement. Landlord and Tenant shall forthwith
adjust between them by cash payment any balance determined to exist with respect to that portion of the last calendar year for which Tenant is responsible for Operating Expenses, notwithstanding that
the Lease term may have terminated before the end of such calendar year; and this provision shall survive the expiration or earlier termination of the Lease. 

	6.4
	TENANT'S PERCENTAGE SHARE.    "Tenant's Percentage Share" as used in this Lease shall mean the
percentage of the cost of Opening Expenses and Real Property Taxes (as defined below) for which Tenant is obligated to reimburse Landlord pursuant to the Lease. Notwithstanding anything to the
contrary contained in section 1.11, Landlord shall have the right lo determine Tenant's Percentage Share of the cost of Operating Expenses and Real Property Taxes using any one or more of the
following three methods, and Tenant hereby agrees that any one of the following three methods of allocation is reasonable: (a) by multiplying the cost of all Operating Expenses or Real
Properties by a fraction, the numerator of which is the number of square feet of leasable space in the Premises and the denominator of which is the number of square feet of leasable
space in all buildings in the Project; or (b) (i) with respect to an Operating Expense or Real Property Taxes attributable solely to the Building, requiring Tenant to pay that portion of the
cost of the Operating Expense or Real Property Taxes that is obtained by multiplying such cost by a fraction, the numerator of which is the number of square feet of leasable space in the
Premises and the denominator of which is the number of square feet of leasable space in the entire Building and (ii) with respect to an Operating Expense or Real Property Taxes
attributable to the Common Areas of the Project, but no any particular building in the Project, requiring Tenant to pay that portion of the cost of the Operating Expense or Real Property Taxes that is
obtained by multiplying such cost by a fraction, the numerator of which is the number of square feet of leasable space in the Premises and the denominator of which is the number of
square feet of leasable space in all buildings in the Project or (c) by allocating an Operating Expense or Real Property Taxes in any other reasonable manner, as determined by Landlord.
Landlord shall apply the various 

8

 

Tenant
Percentage Shares to Operating Expenses and Real Property Taxes in a commercially reasonable and good faith manner. 

	6.5
	AUDITS.    If Tenant disputes the amount set forth in the Statement, Tenant shall have the right, at
Tenant's sole expense, not later the sixty (60) days following receipt of such Statement, to review Landlord's books and records with respect to the calendar year which is the subject of the
Statement. In addition, if Tenant disputes the amount set forth in the Statement, Tenant shall have the right, at Tenant's sole expense, not later than ninety (90) days following receipt of
such Statement, to cause Landlord's books and records with respect to the calendar year which is the subject of the Statement to be audited by a certified public accountant mutually acceptable to
Landlord and Tenant. The audit shall take place at the offices of Landlord where its books and records are located at a mutually convenient time during Landlord's regular business hours. If the audit
is performed by a mutually acceptable certified public accountant, Tenant's Percentage Share of Operating Expenses shall be appropriately adjusted based upon the results of such audit, and the results
of such audit shall be final and binding upon Landlord and Tenant. Tenant shall have no right to conduct an audit or to give Landlord notice that it desires to conduct an audit at any time Tenant is
in default under the Lease. The accountant conducting the audit shall be compensated on an hourly basis and shall not be compensated based upon a percentage of overcharges it discovers. No subtenant
shall have any right to conduct an audit, and no assignee shall conduct an audit for any period during which such assignee was not in possession of the Premises. Tenant's right to undertake an audit
with respect to any calendar year shall expire ninety (90) days after Tenant's receipt of the Statement for such calendar year, and such Statement shall be final and binding upon Tenant and
shall, as between the parties, be conclusively deemed correct, at the end of such ninety (90) day period, unless prior thereto Tenant shall have given Landlord written notice of its intention
to audit Operating Expenses for the calendar year which is the subject of the Statement. If Tenant gives Landlord notice of its intention to audit Operating Expenses, it must commence such audit
within sixty (60) days after such notice is delivered to Landlord, and the audit must be completed within one hundred twenty (120) days after such notice is delivered to Landlord. If
Tenant does not commence and complete the audit within such periods, the Statement which Tenant elected to audit shall be deemed final and binding upon Tenant and shall, as between the parties, be
conclusively deemed correct. Tenant agrees that the results of any Operating Expense audit shall be kept strictly confidential by Tenant and shall not be disclosed to any other person or entity. If as
a result of an audit, it is determined that Landlord has overstated the Operating Expenses owed by Tenant on a Statement by more than ten percent (10%) of the actual Operating Expenses owed by Tenant,
Landlord shall reimburse Tenant for the reasonable out-of-pocket costs Tenant paid to unrelated third parties for the performance of the audit;  provided, however, Landlord shall not be obligated to reimburse Tenant for more than One Thousand Five
Hundred Dollars($1,500) of expenses with respect to any one audit.

	6.6
	AMORTIZATION OF CERTAIN IMPROVEMENTS.    Pursuant to sections 6.1 and 12 of this Lease,
Landlord has the right to require Tenant to pay for certain costs related to the replacement of the roof membrane and HVAC units at the Building and the resurfacing of the asphalt and concrete
driveways and parking areas of the Project (collectively, the "Major Items"). Notwithstanding anything to the contrary contained in sections 6.1
and 12, if Landlord replaces a Major Item, and in accordance with GAAP, the entire cost of the replacement is not deductible as an expense in the year incurred, Landlord shall amortize the cost
of the replacement of the Major Item over its useful life, as reasonably determined by Landlord, and Tenant shall only be obligated to reimburse Landlord each year for its Percentage Share of such
amortized cost. Landlord shall have no obligation to amortize repairs or maintenance items (as opposed to replacement costs) relating to the Major Items, and all repair and 

9

 

maintenance
items shall be payable by Tenant to Landlord as Operating Expense in the year incurred. 

	7.
	SECURITY DEPOSIT.    Tenant shall deliver to Landlord at the time it executes this Lease the security
deposit set forth in section 1.12 as security for Tenant's faithful performance of Tenant's obligations hereunder. If Tenant fails to pay Base Rent or other charges due hereunder, or otherwise
defaults with respect to any provision of this Lease, Landlord may use all or any portion of said deposit for the payment of any Base Rent or other charge due hereunder, to pay any other sum to which
Landlord may become obligated by reason of Tenant default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. If Landlord so uses or applies all or any portion of said
deposit, Tenant shall within ten (10) days after written demand therefor deposit cash with Landlord in an amount sufficient to restore said deposit to its full amount. Landlord shall not be
required to keep said security deposit separate from its general accounts. If Tenant performs all of Tenant's obligations hereunder, said deposit, or so much thereof as has not heretofore been applied
by Landlord, shall be returned, without payment of interest or other amount for its use, to Tenant (or, at Landlord's option, to the last assignee, if any, of Tenant's interest hereunder) at the
expiration of the term hereof, and after Tenant has vacated the Premises. No trust relationship is created herein between Landlord and Tenant with respect to said security deposit. Tenant acknowledges
that the security deposit is not an advance payment of any kind or a measure of Landlord's damages in the event of Tenant's default. Tenant hereby waives the provisions of any law which is
inconsistent with this section. 

8.     UTILITIES.  

	8.1
	PAYMENT.    Tenant shall pay for all water, gas, electricity, telephone, sewer, sprinkler services,
refuse and trash collection and other utilities and services used on the Premises, together with any taxes, penalties, surcharges or the like pertaining thereto. Tenant shall contract directly with
the applicable public utility for such service. Tenant shall pay its share of all charges for jointly-metered utilities based upon consumption, as reasonably determined by Landlord. Tenant agrees to
limit use of water and sewer for normal restroom use, and nothing herein contained shall impose upon Landlord any duty to provide sewer or water usage for other than normal restroom usage.

	8.2
	INTERRUPTIONS.    Subject to Tenant's rights under section 8.5 below, Tenant agrees that
Landlord shall not be liable to Tenant for its failure to furnish water, gas, electricity, telephone, sewer, refuse and trash collection or any other utility services or building services when such
failure is occasioned, in whole or in part by repairs, replacements or improvements, by any strike, lockout or other labor trouble, by inability to secure electricity, gas, water, telephone service or
other utility at the Project, by any accident, casualty or event arising from any cause whatsoever, by act, negligence or default of Tenant or any other person or entity, or by any other cause, and
such failures shall never be deemed to constitute an eviction or disturbance of Tenant's use and possession of the Premises or relieve Tenant from the obligation of paying rent or performing any of
its obligations under this Lease; provided, however, the foregoing shall not release Landlord from
liability arising out of the negligence or willful misconduct of Landlord and Landlord's agents. Furthermore, subject to Tenant's rights under section 8.5 below, Landlord shall not be liable
under any circumstances for loss of property or for injury to, or interference with, Tenant's business, including, without limitation, loss of profits, however occurring, through or in connection with
or incidental to a failure to furnish any such services or utilities. Landlord may comply with voluntary controls or guidelines promulgated by any governmental entity relating to the use or
conservation of energy, water, gas, light or electricity or the reduction of automobile or other emissions without creating any liability of Landlord to Tenant under this Lease. 

10

 

	8.3
	RAILROAD SPURS.    If the Premises is served by railroad spur, Tenant shall execute any agreement
required by the railroad company serving the railroad spur, and such agreement shall be satisfactory to Landlord, in Landlord's sole discretion. Tenant shall pay the cost of maintaining the railroad
spur, at Tenant's sole cost and expanse.

	8.4
	ALTERNATIVE UTILITY PROVIDERS.    If permitted by applicable laws, Landlord shall have the right at
any time and from time to time during the term of this Lease to either contract for service from a different company or companies (each such company referred to as an
"Alternate Service Provider") other than the company or companies presently providing electrical service for the Project
(the "Electric Service Provider") or continue to contract for service from the Electric Service Provider, at Landlord's sole discretion. Tenant
agrees to cooperate with Landlord, the Electric Service Provider, and an Alternate Service Provider at all times and, as reasonably necessary, shall allow Landlord, the Electric Service Provider, and
any Alternate Service Provider reasonable access to the Building's electric lines, feeders, risers, wiring and any other machinery within the Premises.

	8.5
	ABATEMENT OF RENT.    In the event that Tenant is prevented from using, and does not use, the
Premises or any portion thereof for two (2) consecutive business days (the "Eligibility Period") as a result of any damage or destruction
to the Premises or any repair, maintenance or alteration performed by Landlord to the Premises after the Commencement Date and required by the Lease, which substantially interferes with Tenant's use
of the Premises, or any failure to provide services or access to the Premises due to Landlord's negligence or default, then Tenant's rent shall be abated or reduced, as the case may be, after
expiration of the Eligibility Period for such time that Tenant continues to be so prevented from using, and does not use, the Premises or a portion thereof, in the proportion that the rentable area of
the portion of the Premises that Tenant is prevented from using, and does not use, bears to the total rentable area of the Premises. However, in the event that Tenant is prevented from conducting, and
does not conduct, its business in any portion of the Premises for a period of time in excess of the Eligibility Period, and the remaining portion of the Premises is not sufficient to allow Tenant to
effectively conduct its business therein, and if Tenant does not conduct its business from such remaining portion, then for such time after expiration of the Eligibility Period during which Tenant is
so prevented from effectively conducting its business therein, the rent for the entire Premises shall be abated; provided,  however, if Tenant reoccupies
and conducts its business from any portion of the Premises during such period, the rent allocable to such reoccupied
portion, based on the proportion that the rentable area of such reoccupied portion of the Premises bears to the total rentable area of the Premises, shall be payable by Tenant from the date such
business operations commence. 

9.     REAL AND PERSONAL PROPERTY TAXES.  

	9.1
	PAYMENT OF TAXES.    Tenant shall pay to Landlord during the term of this Lease, in addition to Base
Rent and Tenant's Percentage Share of Operating Expenses, Tenant's Percentage Share of all Real Property Taxes. Tenant's Percentage Share of Real Property Taxes shall be payable by Tenant at the same
time, in the same manner and under the same terms and conditions as Tenant pays Tenant's Percentage Share of Operating Expenses.

	9.2
	DEFINITION OF REAL PROPERTY TAX.    As used herein, the term "Real Property
Taxes" shall include any form of real estate tax or assessment, general, special, ordinary or extraordinary, improvement bond or bonds imposed on the Project or any portion
thereof by any authority having the direct or indirect power to tax, including any city, county, state or federal government, or any school, agricultural, sanitary, fire, street, drainage or other
improvement district thereof, as against any legal or equitable interest of Landlord in the Project or in any portion thereof. Real Property Taxes shall not include income, inheritance 

11

 

and
gift taxes. In the future a general or special assessment of real property taxes may be levied and assessed against the Project, and in this event Landlord may have the right to either elect to
pay the new assessment in full or to pay the new assessment in installments over time. If Landlord elects to pay the new assessment in full, each year the Real Property Taxes shall include the amount
of the assessment that would have come due each year if Landlord had elected to pay the assessment in installments. 

	9.3
	PERSONAL PROPERTY TAXES.    Tenant shall pay prior to delinquency all taxes assessed against and
levied upon trade fixtures, furnishings, equipment and all other personal property of Tenant contained in the Premises or related to Tenant's use of the Premises. If any of Tenant's personal property
shall be assessed with Landlord's real or personal property, Tenant shall pay to Landlord the taxes attributable to Tenant within ten (10) days after receipt of a written statement from
Landlord setting forth the taxes applicable to Tenant's property.

	9.4
	REASSESSMENTS.    From time to time Landlord may challenge the assessed value of the Project as
determined by applicable taxing authorities and/or Landlord may attempt to cause the Real Property Taxes to be reduced on other grounds. If Landlord is successful in causing the Real Property Taxes to
be reduced or in obtaining a refund, rebate, credit or similar benefit (hereinafter collectively referred to as a "reduction"), Landlord shall to the extent practicable, credit the reduction(s) to
Real Property Taxes for the calendar year to which a reduction applies and recalculate the Real Property Taxes owed by Tenant for years in which the reduction applies based on the reduced Real
Property Taxes. All costs incurred by Landlord in obtaining the Real Property Tax reductions shall be considered an Operating Expense, and Landlord shall determine, in its sole discretion, to which
years any reductions will be applied. In addition, all accounting and related costs incurred by Landlord in making the adjustments shall be an Operating Expense. Landlord shall have the right to
compensate a person or entity it employs to obtain a reduction in Real Property Taxes by giving such person or entity a percentage of any reduction or credit obtained, and in this event the reduction
or credit obtained by Landlord shall be deemed to be the reduction or credit given by the taxing authority less the compensation paid to such person or entity. 

10.   INSURANCE.  

	10.1
	INSURANCE—TENANT.    

	(a)
	Tenant
shall obtain and keep in force during the term of this Lease a commercial general liability policy of insurance with coverages acceptable to Landlord, in Landlord's reasonable
discretion, which, by way of example and not limitation, protects Tenant and Landlord (as an additional insured) against claims for bodily injury, personal injury and property damage based
upon, involving or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single-limit
coverage in an amount not less than $2,000,000 per occurrence with an "Additional Insured-Managers and Landlords of Premises Endorsement" and contain the "Amendment of the Pollution Exclusion" for
damage caused by heat, smoke or fumes from a hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for
liability assumed under this Lease as an "insured contract" for the performance of Tenant's indemnity obligations under this Lease.

	(b)
	Tenant
shall obtain and keep in force during the term of this Lease "all-risk" extended coverage property insurance. Said insurance shall be written on a one hundred
percent (100%) replacement cost basis on Tenant's personal property, all tenant improvements installed at the Premises by Landlord or Tenant, Tenant's trade fixtures and other 

12

 

property.
By way of example, and not limitation, such policies shall provide protection against any peril included within the classification "fire and extended coverage," against vandalism and
malicious mischief, theft, sprinkler leakage, earthquake damage and flood damage. 

	(c)
	Tenant
shall, at all times during the term hereof, maintain in effect workers' compensation insurance as required by applicable law and business interruption and extra expense
insurance satisfactory to Landlord.

 

	10.2
	INSURANCE—LANDLORD.    

	(a)
	Landlord
shall obtain and keep in force a policy of general liability insurance with coverage against such risks and in such amounts as Landlord deems advisable insuring Landlord
against liability arising out of the ownership, operation and management of the Project.

	(b)
	Landlord
shall also obtain and keep in force during the term of this Lease a policy or policies of insurance covering loss or damage to the Project in the amount of not less than
eighty percent (80%) of the full replacement cost thereof, as determined by Landlord from time to time. The terms and conditions of said policies and the perils and risks covered thereby shall be
determined by Landlord, from time to time, in Landlord's sole discretion; provided that such policy shall, at a minimum, provide protection against any
peril included within the classification "fire and extended coverage," vandalism and malicious mischief, theft and sprinkler leakage. In addition, at Landlord's option, Landlord shall obtain and keep
in force, during the term of this Lease, a policy of rental interruption insurance, with loss payable to Landlord, which insurance shall, at Landlord's option, also cover all Operating Expenses and
Real Property Taxes. Tenant will not be named as an additional insured in any insurance policies carried by Landlord and shall have no right to any proceeds therefrom. The policies purchased by
Landlord shall contain such deductibles as Landlord may determine. Tenant shall pay at Tenant's sole expense any increase in the property insurance premiums for the Project over what was payable
immediately prior to the increase to the extent the increase is specified by Landlord's insurance carrier as being caused by the nature of Tenant's occupancy or any act or omission of Tenant.

 

	10.3
	INSURANCE POLICIES.    Tenant shall deliver to Landlord certificates of the insurance policies
required under section 10.1 within fifteen (15) days prior to the Commencement Date of this Lease, and Landlord shall have the right to approve the terms and conditions of said
certificates. Tenant's insurance policies shall not be cancelable or subject to reduction of coverage or other modification except after thirty (30) days' prior written notice to Landlord.
Tenant shall, at least thirty (30) days prior to the expiration of such policies, furnish Landlord with certificates of renewals thereof. Tenant's insurance policies shall be issued by
insurance companies authorized to do business in the state in which the Project is located, and said companies shall maintain during the policy term a "General Policyholder's Rating" of at least A and
a financial rating of at least "Class X" (or such other rating as may be required by any lender having a lien on the Project) as set forth in the most recent edition of "Best Insurance
Reports." All insurance obtained by Tenant shall be primary to and not contributory with any similar insurance carried by Landlord, whose insurance shall be considered excess insurance only. Landlord
and, at Landlord's option, the holder of any mortgage or deed of trust encumbering the Project and any person or entity managing the Project on behalf of Landlord, shall be named as an additional
insured on all insurance policies Tenant is obligated to obtain by section 10.1 above. Tenant's insurance policies shall not include deductibles in excess of Five Thousand Dollars ($5,000);  provided, however, if deductibles in this amount are 

13

 

not
available at commercially reasonable rates and it becomes customary to permit tenants of similar industrial buildings to maintain a higher deductible, Landlord shall permit Tenant to maintain the
higher customary deductible not to exceed One Hundred Thousand Dollars ($25,000). 

	10.4
	WAIVER OF SUBROGATION.    Landlord waives any and all rights of recovery against Tenant and Tenant's
employees and agents for or arising out of damage to, or destruction of, the Project to the extent that Landlord's insurance policies then in force insure against such damage or destruction
(or to the extent of what would have been covered had Landlord maintained the insurance required to be carried under this Lease) and permit such waiver. Tenant waives any and all rights of
recovery against Landlord and Landlord's employees and agents for or arising out of damage to, or destruction of, the Project to the extent that Tenant's insurance policies then in force insure
against such damage or destruction (or to the extent of what would have been covered had Tenant maintained the insurance required to be carried under this Lease) and permit such waiver. Tenant
shall cause the insurance policies it obtains in accordance with section 10.1 relating to property damage to provide that the insurance company waives all right of recovery by subrogation
against Landlord in connection with any liability or damage covered by Tenant's insurance policies.

	10.5
	COVERAGE.    Landlord makes no representation to Tenant that the limits or forms of coverage
specified above or approved by Landlord are adequate to insure Tenant's property or Tenant's obligations under this Lease, and the limits of any insurance carried by Tenant shall not limit Tenant's
obligations or liability under any indemnity provision included in this Lease or under any other provision of this Lease. 

11.   LANDLORD'S REPAIRS.  

	11.1
	OBLIGATIONS OF LANDLORD.    Landlord shall maintain, at Landlord's expense, only the structural
elements of the roof of the Building (excluding the roof membrane), the structural soundness of the foundation of the Building and the structural elements of the exterior walls of the Building. Tenant
shall reimburse Landlord for the cost of any maintenance, repair or replacement of the foregoing necessitated by Tenant's misuse, negligence, alterations to the Premises or any breach of its
obligations under this Lease. By way of example, and not limitation, the term "exterior walls" as used in this section shall not include windows, glass or plate glass, doors or overhead doors, special
store fronts, dock bumpers, dock plates or levelers, or office entries. Tenant shall immediately give Landlord written notice of any repair required by Landlord pursuant to this section, after which
Landlord shall have a reasonable time in which to complete the repair. Nothing contained in this section shall be construed to obligate Landlord to seal or otherwise maintain the surface of any
foundation, floor or slab. Tenant expressly waives the benefits of any statute now or hereafter in effect which would otherwise afford Tenant the right to make repairs at Landlord's expense or to
terminate this Lease because of Landlord's failure to keep the Premises in good order, condition and repair.

	11.2
	FAILURE OF LANDLORD TO MAKE REPAIR.    Notwithstanding anything to the contrary contained in the
Lease, if Tenant provides written notice to Landlord that an event or circumstance has occurred which requires Landlord to complete a repair at the Premises, and Landlord fails to begin taking the
actions necessary to complete such repair within thirty (30) days after the receipt of such notice and to thereafter diligently proceed to complete such repair, then, Tenant shall have the
right to give to Landlord a second written notice (the "Second Notice"). The Second Notice shall (a) describe the repair Landlord is
obligated to complete and (b) state that Landlord's failure to begin taking the actions necessary to complete such repair within ten (10) days after Landlord's receipt of the Second
Notice shall entitle Tenant to make the repair pursuant to this Section of the Lease. If Landlord does not 

14

 

begin
taking the actions necessary to complete such repair within ten (10) days after the receipt of the Second Notice, subject to the terms and conditions set forth below, Tenant may proceed
to make the repair, and if such repair was required under the terms of the Lease to be made by Landlord, then Tenant shall be entitled to reimbursement by Landlord of Tenant's reasonable costs and
expenses in making such repair. If Landlord was obligated to perform such repair, Landlord shall reimburse Tenant for the reasonable cost of the repair within thirty (30) days after receiving
reasonable evidence of the repair made, its cost and mechanics' lien releases from all contractors making the repair. If Tenant makes a repair, and such repair will affect the Building's life/safety
system, HVAC system, elevator system, electrical system, plumbing system, or the structural integrity of the Building, Tenant shall utilize the services of the contractors used by Landlord to provide
such services or, if Tenant is unable to determine which contractors Landlord uses to provide such services after diligent inquiry, a qualified, experienced and solvent contractor that regularly
performs similar work in similar buildings in the area in which the Building is located. Nothing contained herein shall be deemed to give Tenant the right to take any action or to make any repair in
any Common Area or the right to modify the structure, layout or design of the Building. In addition, Tenant shall not have the right to make any repair pursuant to this section, unless such repair is
necessary to remedy a problem which substantially and adversely affects Tenant's use of the Premises. All repairs made by Tenant shall be made in accordance with all applicable laws, and Landlord
shall not be responsible for any defective work performed by Tenant or contractors hired by Tenant. Tenant shall pay all costs incurred with respect to any actions or repairs made by Tenant and shall
pay all claims for labor and materials furnished to Tenant as and when due. 

12.   TENANT'S REPAIRS.  

	12.1
	OBLIGATIONS OF TENANT.    Subject to section 12.2 below. Tenant shall, at its sole cost and
expense, keep and maintain all parts of the Premises (except those listed as Landlord's responsibility in section 11 above) in good and sanitary condition, promptly making all necessary repairs
and replacements, including but not limited to, windows, glass and plate glass, doors, skylights, roof membranes, any special store front or office entry, walls and finish work, floors and floor
coverings, heating and air conditioning systems, dock boards, bumpers, plates, seals, levelers and lights, plumbing work and fixtures (including periodic backflow testing), electrical systems,
lighting facilities and bulbs, sprinkler systems, alarm systems, fire detection systems, termite and pest extermination, sidewalks, landscaped areas, fencing, tenant signage and regular removal of
trash and debris. Tenant shall notify Landlord in writing prior to making any repair or performing any maintenance pursuant to this section, and Landlord shall have the right to designate the
contractor Tenant shall use to make any repair or to perform any maintenance on the roof, heating, ventilation and air conditioning systems ("HVAC"),
plumbing systems, electrical systems, sprinkler systems, fire alarm systems or fire detection systems located at the Premises. Notwithstanding the foregoing, Tenant shall have the right to perform
routine repairs and maintenance in the Premises without notifying Landlord provided that the routine repair or maintenance item (i) will not affect any other tenant of the Project or the
exterior of the Building, (ii) is not a Landlord Maintenance Item (as defined below) and (iii) will not cost more than Two Thousand Dollars ($2,000.00). Tenant shall not paint or
otherwise change the exterior appearance of the Premises without Landlord's prior written consent, which may be given or withheld in Landlord's sole discretion. The cost of maintenance and repair of
any common party wall (any wall, divider, partition or any other structure separating the Premises from any adjacent premises occupied by other tenants) shall be shared equally by Tenant and
the tenant occupying the adjacent premises; provided, however, if Tenant damages a party wall the entire
cost of the repair shall be paid by Tenant, at Tenant's sole expense. Tenant shall not damage any party wall or disturb 

15

 

the
integrity and support provided by any party wall. If Tenant fails to keep the Premises in good condition and repair, Landlord may, but shall not be obligated to, make any necessary repairs. If
Landlord makes such repairs, Landlord may bill Tenant for the cost of the repairs as additional rent, and said additional rent shall be payable by Tenant within ten (10) days after demand
by Landlord. 

	12.2
	PERFORMANCE OF WORK BY LANDLORD.    Notwithstanding Tenant's obligation to keep the roof membranes,
HVAC units, sprinkler systems, fire alarm systems, fire detection systems and exterior walls of the Premises in good condition and repair, Landlord shall employ contractors to perform all repairs,
maintenance and replacements of the roof membranes, HVAC units, sprinkler systems, fire alarm systems, fire detection systems and exterior walls of the Premises. The items described in the previous
sentence that Landlord will cause to be repaired, maintained and replaced are hereinafter referred to as the "Landlord Maintenance Items." Tenant shall reimburse Landlord as additional rent for all
costs Landlord incurs in performing the Landlord Maintenance Items within ten (10) days after written demand by Landlord. Landlord shall determine in its sole discretion the scope and timing of
the performance of such Landlord Maintenance Items, and Tenant shall not perform such Landlord Maintenance Items. Landlord's maintenance of the exterior walls of the Premises shall include the right,
but not the obligation, of Landlord to paint from time to time all or some of the exterior walls, canopies, doors, windows, gutters, handrails and other exterior parts of the Premises with colors
selected by Landlord, and Tenant shall reimburse Landlord as provided above for all costs incurred by Landlord in painting such items. If the Premises contains landscaped areas
("Landscaped Areas"), Landlord shall maintain the Landscaped Areas, and Tenant shall reimburse Landlord for all costs incurred by Landlord in
maintaining the Landscaped Areas within ten (10) days after written demand by Landlord; provided,  however, Landlord shall have the right to estimate
the monthly cost of maintaining the Landscaped Areas, and Tenant shall pay such amount to Landlord as
additional rent each month at the same time Tenant pays Base Rent. Tenant shall Immediately give Landlord written notice of any repair or maintenance required by Landlord pursuant to this section,
after which Landlord shall have a reasonable time in which to complete such repair or maintenance. Landlord shall have the right, but not the obligation, to include the cost of Landlord Maintenance
Items and the cost of the maintenance of Landscaped Areas in Operating Expenses, and Tenant shall then pay Tenant's Percentage Share of such costs as determined by Landlord. Landlord shall have the
right at any time, and from time to time, to elect upon written notice to Tenant to have Tenant perform some or all of the Landlord Maintenance Items and/or the maintenance of the Landscaped Areas, in
which event Tenant shall employ contractors designated by Landlord to perform such work and shall pay for all such work at Tenant's sole cost and expense, all in accordance with the requirements of
section 12.1.

	12.3
	MAINTENANCE CONTRACTS.    Landlord shall enter into regularly scheduled preventative
maintenance/service contacts for some or all of the following: the HVAC units servicing the Premises, the sprinkler, fire alarm and fire detection systems servicing the Premises, backflow testing for
the plumbing servicing the Premises and for the roof membrane of the Premises (the "Maintenance Contracts"). The Maintenance Contracts shall
include maintenance services satisfactory to Landlord, in Landlord's sole discretion. Tenant shall reimburse Landlord for the cost of the Maintenance Contracts within ten (10) days after
written demand by Landlord; provided, however, Landlord shall have the right to estimate the monthly
cost of the Maintenance Contracts, and Tenant shall pay such amount to Landlord as additional rent each month at the same time Tenant pays Base Rent. Landlord shall have the right, but not the
obligation, to include the cost of Maintenance Contracts in Operating Expenses, and Tenant shall then pay Tenant's Percentage Share of such costs as determined by Landlord. Landlord 

16

 

shall
have the right at any time, and from time to time, to elect upon written notice to Tenant to have Tenant purchase some or all of the Maintenance Contracts, in which event Tenant shall purchase
such contracts from persons designated or approved by Landlord and shall pay for such Maintenance Contracts at Tenant's sole cost and expense. Landlord shall obtain Maintenance Contracts at
commercially reasonable costs. 

13.   ALTERATIONS AND SURRENDER.  

	13.1
	CONSENT OF LANDLORD.    

	(a)
	GENERALLY.    Tenant shall have the right, subject to Landlord's reasonable requirements relating to construction at the
Project, upon ten (10) days prior written notice to Landlord, to make alterations ("Permitted Alterations") to the inside of the Premises that do
not (i) involve the expenditure of more then $50,000.00; (iii) affect the exterior appearance of the Building or the roof, (iii) affect the Building's electrical, plumbing, HVAC,
life, fire safety or similar Building systems or the structural elements of the Building, or (iv) materially adversely affect any other tenant of the Project. Except with respect to Permitted
Alterations, Tenant shall not, without Landlord's prior written consent, which may be given or withheld in Landlord's reasonable discretion, make any alterations, improvements, additions, utility
installations or repairs (hereinafter collectively referred to as "Non-Permitted Alterations") in, on or about the Premises or the Project.
References in this Lease to "Alterations" shall mean both Permitted Alterations and Non-Permitted Alterations, but not the initial Tenant improvements (as defined in the Work Letter
Agreement). Subject to section (b) below, at the expiration of the term, Landlord may require the removal of any Alterations installed by Tenant and the restoration of the Premises and the
Project to their prior condition, at Tenant's expense if, at the time of Landlord's consent, Landlord did not agree in writing that Tenant would not be obligated to remove the Alterations. If, as a
result of any Alteration made by Tenant, Landlord is obligated to comply with the Americans With Disabilities Act or any other law or regulation, and such compliance requires Landlord to make any
improvement or Alteration to any portion of the Project, as a condition to Landlord's consent, Landlord shall have the right to require Tenant to pay to Landlord, prior to the construction of any
Alteration by Tenant, the entire cost of any improvement or alteration Landlord is obligated to complete by such law or regulation. Should Landlord permit Tenant to make its own Alterations, Tenant
shall use only such architect and contractor as has been reasonably approved by Landlord, and if the cost of the Alteration will exceed $50,0000 Landlord may require Tenant to provide to Landlord, at
Tenant's sole cost and expense, a lien and completion bond in an amount equal to one and one-half times the estimated cost of such Alterations, to insure Landlord against any liability for
mechanic's and materialmen's liens and to insure completion of the work. Should Tenant make any Alterations without the prior approval of Landlord, or use a contractor not expressly approved by
Landlord, Landlord may, at any time during the term of this Lease, require that Tenant remove all or part of the Alterations and return the Premises to the condition it was in prior to the making of
the Alternations. In the event Tenant makes any Alterations, Tenant agrees to obtain or cause its contractor to obtain, prior to the commencement of any work, "builders all risk" insurance in an
amount approved by Landlord, workers compensation insurance and any other insurance requested by Landlord; in Landlord's reasonable discretion.

	(b)
	INITIAL TENANT IMPROVEMENTS AND RADIATION CELLS.    Except as provided below, Landlord hereby approves and agrees to permit
Tenant to leave the Tenant improvements (as defined in the Work Letter Agreement) in the Premises at the end of 

17

 

the
term of the Lease. Landlord shall not be entitled to reimbursed by Tenant or from the Tenant improvement Allowance for any costs incurred by Landlord in monitoring the construction of the Tenant
improvements or in reviewing and/or approving any plans and specifications for the Tenant Improvements. Tenant intends to install four concrete radiation cells in the Premises as part of the initial
Tenant improvements, as more particularly described on the Space Plan attached to the Work Letter Agreement (the "Initial Radiation Cells"). The
Space Plan attached to the Work Letter Agreement also describes the location of two additional concrete radiation cells that Tenant may wish to install after the initial Tenant improvements are
completed (the "Additional Radiation Cells"). Subject to the terms and conditions of this section 13, Landlord hereby consents to the
construction of the Additional Radiation Cells by Tenant at any time during the term of the Lease. The Additional Radiation Cells shall be placed in the locations described on the Space Plan and shall
be constructed using materials and designs that are similar to the Initial Radiation Cells. Tenant shall have no obligation to remove the Initial Radiation Cells or to restore the Premises to the
condition it was in prior to the installation of the Initial Radiation Cells unless Tenant defaults in the performance of its obligations under this Lease during the Initial Term and this Lease is
terminated as a result of such default, in which case Tenant shall be obligated to remove the Initial Radiation Cells from the Premises. If Tenant installs the Additional Radiation Cells during the
Initial Term and Tenant does not exercise the Extension Option, prior to the expiration of the Initial Term, Tenant shall remove the Additional Radiation Cells and restore the Premises to the
condition it was in prior to the Installation of the Additional Radiation Cells. If Tenant exercises the Extension Option and performs all of its obligations under this Lease during the term of the
Extension Option, if Tenant has installed the Additional Radiation Cells, Tenant shall have no obligation to remove the Additional Radiation Cells from the Premises. If Tenant defaults in the
performance of its obligations under this Lease during the Extended Term and this Lease is terminated as a result of such default, Tenant shall be obligated to remove the Additional Radiation Cells
and to restore the Premises to the condition it was in prior to the installation of the Additional Radiation Cells. 

	13.2
	PERMITS.    Any Alterations in or about the Premises that Tenant shall desire to make shall be
presented to Landlord in written form, and if a building permit will be required, with plans and specifications which are sufficiently detailed to obtain a building permit. If Landlord consents to an
Alteration, the consent shall be deemed conditioned upon Tenant acquiring a building permit from the applicable governmental agencies, furnishing a copy thereof to Landlord prior to the commencement
of the work, and compliance by Tenant with all conditions of said permit in a prompt and expeditious manner. Tenant shall provide landlord with as-built plans and specifications for any
Alterations made to the Premises.

	13.3
	MECHANICS LIENS.    Tenant shall pay, when due, all claims for labor or materials furnished or
alleged to have been furnished to or for Tenant at or for use in the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or the Project, or any
interest therein. If Tenant shall, in good faith, contest the validity of any such lien, Tenant shall furnish to Landlord a surety bond satisfactory to Landlord in an amount equal to not less than one
and one-half times the amount of such contested lien claim indemnifying Landlord against liability arising out of such lien or claim. Such bond shall be sufficient in form and amount to
free the Project from the effect of such lien. In addition, Landlord may require Tenant to pay Landlord's reasonable attorneys' fees and costs in participating in such action. 

18

 

	13.4
	NOTICE.    Tenant shall give Landlord not less than ten (10) days' advance written notice
prior to the commencement of any work in the Premises by Tenant, and Landlord shall have the right to post notices of non-responsibility in or on the Premises or the Project.

	13.5
	SURRENDER.    Subject to Landlord's right to require removal or to elect ownership as hereinafter
provided, all Alterations made by Tenant to the Premises shall be the property of Tenant, but shall be considered to be a part of the Premises. Unless Landlord gives Tenant written notice of its
election not to become the owner of the Alterations at the end of the term of this Lease, the Alterations shall become the property of Landlord at the end of the term of this Lease. Landlord may
require, on notice to Tenant, that some or all Alterations be removed prior to the end of the term of this Lease and that any damages caused by such removal be repaired at Tenant's sole expense. On
the last day of the term hereof, or on any sooner termination, Tenant shall surrender the Premises (including, but not limited to, all doors, windows, floors and floor coverings, skylights, heating
and air conditioning systems, dock boards, truck doors, dock bumpers, plumbing work and fixtures, electrical systems, lighting facilities, sprinkler systems, fire detection systems and nonstructural
elements of the exterior walls, foundation and roof (collectively the "Elements of the Premises")) to Landlord in the same condition as received,
ordinary wear and tear and casualty damage excepted, clean and free of debris and Tenant's personal property, trade fixtures and equipment. Tenant's personal property shall include all computer wiring
and cabling installed by Tenant. Provided, however, if Landlord has not elected to have Tenant remove the Alterations, Tenant shall leave the Alterations at the Premises in good condition and repair,
ordinary wear and tear excepted. Tenant shall repair any damage to the Premises occasioned by the installation or removal of Tenant's trade fixtures, furnishings and equipment. Damage to or
deterioration of any Element of the Premises or any other item Tenant is required to repair or maintain at the Premises shall not be deemed ordinary wear and tear if the same could have been prevented
by good maintenance practices. If the Premises are not surrendered at the expiration of the term or earlier termination of this Lease in accordance with the provisions of this section, at Landlord's
option, Tenant shall continue to be responsible for the payment of Base Rent and all other amounts due under this Lease until the Premises are so surrendered in accordance with said provisions. Tenant
shall indemnify, defend and hold Landlord harmless from and against any and all damages, expenses, costs, losses or liabilities arising from any delay by Tenant in so surrendering the Premises
including, without limitation, any damages, expenses, costs, losses or liabilities arising from any claim against Landlord made by any succeeding tenant or prospective tenant founded on or resulting
from such delay and losses and damages suffered by Landlord due to lost opportunities to lease any portion of the Premises to any such succeeding tenant or prospective tenant, together with, in each
case, actual attorneys' fees and costs.

	13.6
	FAILURE OF TENANT TO REMOVE PROPERTY.    If this Lease is terminated due to the expiration of its
term or otherwise, and Tenant fails to remove its property, in addition to any other remedies available to Landlord under this Lease, and subject to any other right or remedy Landlord may have under
applicable law, Landlord may remove any property of Tenant from the Premises and store the same elsewhere at the expense and risk of Tenant. 

14.   DAMAGE AND DESTRUCTION.  

	14.1
	EFFECT OF DAMAGE OR DESTRUCTION.    If all or part of the Project is damaged by fire, earthquake,
flood, explosion, the elements, riot, the release or existence of Hazardous Materials (as defined below) or by any other cause whatsoever (hereinafter collectively referred to as "damages"),
but the damages are not material (as defined in section 14.2 below), Landlord shall repair the damages to the Project as soon as is reasonably possible, and 

19

 

this
Lease shall remain in full force and effect. If all or part of the Project is destroyed or materially damaged (as defined in section 14.2 below), Landlord shall have the right, in
its sole and complete discretion, to repair or to rebuild the Project or to terminate this Lease. Landlord shall within one hundred twenty (120) days after the discovery of such material damage
or destruction notify Tenant in writing of Landlord's intention to repair or to rebuild or to terminate this Lease. Tenant shall in no event be entitled to compensation or damages on account of
annoyance or inconvenience in making any repairs, or on account of construction, or on account of Landlord's election to terminate this Lease. Notwithstanding the foregoing, if Landlord shall elect to
rebuild or repair the Project after material damage or destruction, but in good faith determines that the Premises cannot be substantially repaired within three hundred sixty (360) days after
the date of the discovery of the material damage or destruction, without payment of overtime or other premiums, and the damage to the Project will render the entire Premises unusable during said three
hundred sixty (360) day period, Landlord shall notify Tenant thereof in writing at the time of Landlord's election to rebuild or repair, and Tenant shall thereafter have a period of fifteen
(15) days within which Tenant may elect to terminate this Lease, upon thirty (30) days' advance written notice to Landlord. Tenant's termination right described in the preceding sentence
shall not apply if the damage was caused by the negligent or intentional acts of Tenant or its employees, agents, contractors or invitees. Failure of Tenant to exercise said election within said
fifteen (15) day period shall constitute Tenant's agreement to accept delivery of the Premises under this Lease whenever tendered by Landlord, provided Landlord thereafter pursues
reconstruction or restoration diligently to completion, subject to delays caused by Force Majeure Events. Tenant shall also have the right to terminate this Lease in the event that, notwithstanding
Landlord's good faith estimate that the Premises can be substantially repaired within three hundred sixty (360) days after the date of damage or destruction, the Premises are not in fact
substantially repaired within such three hundred sixty (360) day period (as extended by Force Majeure Events). Tenant shall provide Landlord with written notice of its election to
terminate this Lease because the repairs are not completed in three hundred sixty (360) days within ten (10) days after the three hundred sixty (360) day. Failure of Tenant to
exercise said election within said ten (10) day period shall constitute Tenant's agreement to accept delivery of the Premises under this Lease whenever tendered by Landlord, provided Landlord
thereafter pursues reconstruction or restoration diligently to completion, subject to delays caused by Force Majeure Events. If Landlord is unable to repair the damage to the Premises or the Project
during such three hundred sixty (360) day period due to Force Majeure Events, the three hundred sixty (360) day period shall be extended by the period of delay caused by the Force
Majeure Events. A "Force Majeure Event" shall mean fire, earthquake, weather delays or other acts of God, strikes, boycotts, war, riot, insurrection, embargoes, shortages of equipment, labor or
materials, delays in issuance of governmental permits or approvals not caused by Landlord or its agents or contractors, or any other cause beyond the reasonable control of Landlord. Subject to
section 14.3 below, if Landlord or Tenant terminates this Lease in accordance with this section 14.1, Tenant shall continue to pay all Base Rent, Operating Expenses and other amounts due
hereunder which arise prior to the date of termination. Tenant shall also have the right to terminate this Lease if damage occurs to the Premises during the last twelve (12) months of the Lease
term, such damage renders a substantial portion of the Premises unusable, and such damage cannot be substantially repaired within sixty (60) days. Tenant's termination right described in the
previous sentence shall be exercised by providing Landlord with written notice within fifteen (15) days after the occurrence of the damage. 

	14.2
	DEFINITION OF MATERIAL DAMAGE.    Damage to the Project shall be deemed material if, in Landlord's
reasonable judgment, the uninsured cost of repairing the damage will exceed 

20

 

One
Hundred Thousand Dollars (100,000). If insurance proceeds are available to Landlord in an amount which is sufficient to pay the entire cost of repairing all of the damage to the Project, the
damage shall be deemed material if the cost of repairing the damage exceeds Five Hundred Thousand Dollars ($500,000). Damage to the Project shall also be deemed material if (a) the Project
cannot be rebuilt or repaired to substantially the same condition it was in prior to the damage due to laws or regulations in effect at the time the repairs will be made, (b) the holder of any
mortgage or deed of trust encumbering the Project requires that insurance proceeds available to repair the damage in excess of One Hundred Thousand Dollars ($100,000) be applied to the repayment of
the indebtedness secured by the mortgage or the deed of trust, or (c) the damage occurs during the last twelve (12) months of the Lease term. 

	14.3
	ABATEMENT OF RENT.    If Landlord elects to repair damage to the Project and all or part of the
Premises will be unusable or inaccessible to Tenant in the ordinary conduct of its business until the damage is repaired, Tenant's Base Rent and Tenant's Percentage Share of Operating Expenses shall
be abated until the repairs are completed in proportion to the amount of the Premises which is unusable or inaccessible to Tenant in the ordinary conduct of its business. Notwithstanding the
foregoing, there shall be no abatement of Base Rent or Tenant's Percentage Share of Operating Expenses by reason of any portion of the Premises being unusable or inaccessible for a period equal to
five (5) consecutive business days or less.

	14.4
	TENANT'S ACTS.    If such damage or destruction occurs as a result of the negligence or the
intentional acts of Tenant or Tenant's employees, agents, contractors or invitees, and the proceeds of insurance which are actually received by Landlord are not sufficient to pay for the repair of all
of the damage, Tenant shall pay, at Tenant's sole cost and expense, to Landlord upon demand, the difference between the cost of repairing the damage and the insurance proceeds received
by Landlord.

	14.5
	TENANT'S PROPERTY.    Landlord shall not be liable to Tenant or its employees, agents, contractors,
invitees or customers for loss or damage to merchandise, tenant improvements, fixtures, automobiles, furniture, equipment, computers, files or other property (hereinafter collectively
"Tenant's property") located at the Project. Tenant shall repair or replace all of Tenant's property at Tenant's sole cost and expense. Tenant
acknowledges that it is Tenant's sole responsibility to obtain adequate insurance coverage to compensate Tenant for damage to Tenant's property.

	14.6
	WAIVER.    Landlord and Tenant hereby waive the provisions of any present or future statutes which
relate to the termination of leases when leased property is damaged or destroyed and agree that such event shall be governed by the terms of this Lease.

 

	15.
	CONDEMNATION.    If any portion of the Premises or the Project are taken under the power of eminent domain, or sold under the
threat of the exercise of said power (all of which are herein called "condemnation"), this Lease shall terminate as to the part so taken as of
the date the condemning authority takes title or possession, whichever first occurs; provided that if so much of the Premises or Project are taken by
such condemnation as would substantially and adversely affect the operation and profitability of Tenant's business conducted from the Premises, and said taking lasts for ninety (90) days or
more, Tenant shall have the option, to be exercised only in writing within thirty (30) days after Landlord shall have given Tenant written notice of such taking (or in the absence of
such notice, within thirty (30) days after the condemning authority shall have taken possession), to terminate this Lease as of the date the condemning authority takes such possession. If a
taking lasts for less than ninety (90) days, Tenant's rent shall be abated during said period but Tenant shall not have the right to terminate this Lease. If Tenant does not terminate this
Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of 

21

 

the
Premises remaining, except that the Base Rent and Operating Expenses shall be reduced in the proportion that the usable floor area of the Premises taken bears to the total usable floor area of the
Premises. Common Areas taken shall be excluded from the Common Areas usable by Tenant and no reduction of rent shall occur with respect thereto or by reason thereof. Landlord shall have the option in
its sole discretion to terminate this Lease as of the taking of possession by the condemning authority, by giving written notice to Tenant of such election within thirty (30) days after receipt
of notice of a taking by condemnation of any part of the Premises or the Project. Any award for the taking of or any part of the Premises or the Project under the power of eminent domain or any
payment made under threat of the exercise of such power shall be the property of Landlord, whether such award shall be made as compensation for diminution in value of the leasehold, for good will, for
the taking of the fee, as severance damages, or as damages for tenant improvements; provided, however, that Tenant shall be
entitled to any separate award for loss of or damage to Tenant's removable personal property and for moving expenses. In the event that this Lease is not terminated by reason of such condemnation, and
subject to the requirements of any lender that has made a loan to Landlord encumbering the Project, Landlord shall to the extent of severance damages received by Landlord in connection with such
condemnation, repair any damage to the Project caused by such condemnation except to the extent that Tenant has been reimbursed therefor by the condemning authority. This section, not general
principles of law or California Code of Civil Procedure sections 1230.010 et seq., shall govern the rights and obligations of Landlord and Tenant with respect to the condemnation of all or any
portion of the Project. 

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   16.   ASSIGNMENT AND SUBLETTING.

	16.1
	Landlord's Consent Required.    Except as provided in section 16.8, Tenant shall not
voluntarily or by operation of law assign, transfer, hypothecate, mortgage, sublet, or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises (hereinafter
collectively a "Transfer"), without Landlord's prior written consent, which shall not be unreasonably withheld. Landlord shall respond to Tenant's written request for
consent hereunder within thirty (30) days after Landlord's receipt of the written request from Tenant. Any attempted Transfer without such consent shall be void and shall constitute a default
and breach of this Lease. Tenant's written request for Landlord's consent shall include, and Landlord's thirty (30) day response period referred to above shall not commence, unless and until
Landlord has received from Tenant, all of the following information, if readily available (and if not readily available, then information sufficient for reasonable financial review):
(a) financial statements for the proposed assignee or subtenant for the past three (3) years prepared in accordance with generally accepted accounting principles, (b) federal tax
returns for the proposed assignee or subtenant for the past three (3) years, (c) a reasonably detailed description of the business the assignee or subtenant intends to operate at the
Premises, (d) the proposed effective date of the assignment or sublease, (e) a copy of the proposed sublease or assignment agreement, (f) a reasonably detailed description of any
Alterations the proposed assignee or subtenant desires to make to the Premises, and (g) a Hazardous Materials Disclosure Certificate substantially in the form of Exhibit D attached
hereto completed by the assignee or subtenant (the "Transferee HazMat Certificate"). If the obligations of the proposed assignee or subtenant will be guaranteed by
any person or entity, Tenant's written request shall not be considered complete until the information described in (a) and (b) of the previous sentence has been provided with respect to
each proposed guarantor. "Transfer shall not include the transfer (a) if Tenant is a corporation, and Tenant's stock is not publicly traded over a recognized securities exchange, of any or all
of the voting stock of such corporation during the term of this Lease (whether or not in one or more transfers) or the dissolution, merger or liquidation of the corporation, or (b) if Tenant is
a partnership, limited liability company, limited liability partnership or other entity, of any or all of the profit and loss participation in such partnership or entity during the term of this Lease
(whether or not in one or more transfers) or the dissolution, merger or liquidation of the partnership, limited liability company, limited liability partnership or other entity. If Landlord shall
reasonably deny a request for consent to a proposed assignment or sublease, Tenant shall indemnify, defend and hold Landlord harmless from and against any and all losses, liabilities, damages, costs
and claims that may be made against Landlord by the proposed assignee or subtenant, or by any brokers or other persons claiming a commission or similar compensation in connection with the proposed
assignment or sublease; provided, however, this indemnity shall not apply to the unreasonable denial, negligence or willful misconduct
of Landlord.

	16.2
	Intentionally Deleted. 

 
	16.3
	Standard For
Approval.    Landlord shall not unreasonably withhold its consent to a Transfer provided that Tenant has
complied with each and every requirement, term and condition of this section 16. Tenant acknowledges and agrees that each requirement, term and condition in this section 16 is a
reasonable requirement, term or condition. It shall be deemed reasonable for Landlord to withhold its consent to a Transfer if any requirement, term or condition of this section 16 is not
complied with or: (a) the Transfer would cause Landlord to be in violation of its obligations under another lease or agreement to which Landlord is a party; (b) in Landlord's reasonable
judgment, a proposed assignee or subtenant is not able financially to pay the rents due under this Lease as and when they are due and payable; (c) a proposed assignee's or subtenant's business
will impose a burden on the Projects parking 

23

 

facilities,
Common Areas or utilities that is greater than the burden imposed by Tenant, in Landlord's reasonable judgment, (d) the terms of a proposed assignment or subletting will allow the
proposed assignee or subtenant (other than an Affiliate (as defined below) to exercise a right of renewal, right of expansion, right of first offer, right of first refusal or similar right held
by Tenant; (e) a proposed assignee or subtenant refuses to enter into a written assignment agreement or sublease, reasonably satisfactory to Landlord, which provides that it will abide by and
assume all of the terms and conditions of this Lease for the term of any assignment or sublease and containing such other terms and conditions as Landlord reasonably deems necessary; (f) the
use of the Premises by the proposed assignee or subtenant will not be a use permitted by this Lease; (g) any guarantor of this Lease refuses to consent to the Transfer or to execute a written
agreement reaffirming the guaranty; (h) Tenant is in default as defined in section 17 at the time of the request; (i) if requested by Landlord, the assignee or subtenant refuses
to sign a non-disturbance and attornment agreement in favor of Landlord's lender; (j) Landlord has sued or been sued by the proposed assignee or subtenant or has otherwise been
involved in a legal dispute with the proposed assignee or subtenant; (k) the assignee or subtenant is involved in a business which is not in keeping with the then-current standards
of the Project; (l) the proposed assignee or subtenant is an existing tenant of the Project or is a person or entity then negotiating with Landlord for the lease of space in the Project;
(m) the assignee or subtenant is a governmental or quasi-governmental entity or an agency, department or instrumentality of a governmental or quasi-governmental agency; or (n) the
assignee or subtenant will use, store or handle Hazardous Materials in or about the Premises of a type, nature, quantity not acceptable to Landlord, in Landlord's sole discretion. 

	16.4
	Additional Terms and Conditions.    The following terms and conditions shall be applicable to
any Transfer:

	(a)
	Regardless
of Landlord's consent, no Transfer shall release Tenant from Tenant's obligations hereunder or alter the primary liability of Tenant to pay the rent and other sums due
Landlord hereunder and to perform all other obligations to be performed by Tenant hereunder or release any guarantor from its obligations under its guaranty.

	(b)
	Landlord
may accept rent from any person other than Tenant pending approval or disapproval of an assignment or subletting.

	(c)
	Neither
a delay in the approval or disapproval of a Transfer, nor the acceptance of rent, shall constitute a waiver or estoppel of Landlord's right to exercise its rights and remedies
for the breach of any of the terms or conditions of this section 16.

	(d)
	The
consent by Landlord to any Transfer shall not constitute a consent to any subsequent Transfer by Tenant or to any subsequent or successive Transfer by an assignee or subtenant.
However, Landlord may consent to subsequent Transfers or any amendments or modifications thereto without notifying Tenant or anyone else liable on the Lease and without obtaining their consent, and
such action shall not relieve such persons from liability under this Lease.

	(e)
	In
the event of any default under this Lease, Landlord may proceed directly against Tenant, any guarantors or anyone else responsible for the performance of this Lease, including any
subtenant or assignee, without first exhausting Landlord's remedies against any other person or entity responsible therefor to Landlord, or any security held by Landlord. 

24

 

	(f)
	Landlord's
written consent to any Transfer by Tenant shall not constitute an acknowledgment that no default then exists under this Lease nor shall such consent be deemed a waiver of
any then-existing default.

	(g)
	The
discovery of the fact that any financial statement relied upon by Landlord in giving its consent to an assignment or subletting was materially false shall, at Landlord's election,
render Landlord's consent null and void.

	(h)
	Landlord
shall not be liable under this Lease or under any sublease to any subtenant.

	(i)
	No
assignment or sublease may be modified or amended without Landlord's prior written consent.

	(j)
	Intentionally
deleted.

	(k)
	Any
assignee of, or subtenant under, this Lease shall, by reason of accepting such assignment or entering into such sublease, be deemed, for the benefit of Landlord, to have assumed
and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Tenant during the term of said assignment or sublease, other than
such obligations as are contrary or inconsistent with provisions of an assignment or sublease to which Landlord has specifically consented in writing.

	(l)
	At
Landlord's request, Tenant shall deliver to Landlord, Landlord's standard consent to assignment or consent to sublease agreement, as applicable, executed by Tenant, the assignee
and the subtenant, as applicable.

 

	16.5
	Additional Terms and Conditions Applicable to Subletting.    The following terms and conditions
shall apply to any subletting by Tenant of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein:

	(a)
	Tenant
hereby absolutely and unconditionally assigns and transfers to Landlord all of Tenant's interest in all rentals and income arising from any sublease entered into by Tenant, and
Landlord may collect such rent and income and apply same toward Tenant's obligations under this Lease; provided, however, that until a default
shall occur in the performance of Tenant's obligations under this Lease, Tenant may receive, collect and enjoy the rents accruing under such sublease. Landlord shall not, by reason of this or any
other assignment of such rents to Landlord nor by reason of the collection of the rents from a subtenant, be deemed to have assumed or recognized any sublease or to be liable to the subtenant for any
failure of Tenant to perform and comply with any of Tenant's obligations to such subtenant under such sublease, including, but not limited to, Tenant's obligation to return any security deposit.
Tenant hereby irrevocably authorizes and directs any such subtenant, upon receipt of a written notice from Landlord stating that a default exists in the performance of Tenant's obligations under this
Lease, to pay to Landlord the rents due as they become due under the sublease. Tenant agrees that such subtenant shall have the right to rely upon any such statement and request from Landlord, and
that such subtenant shall pay such rents to Landlord without any obligation or right to inquire as to whether such default exists and notwithstanding any notice or claim from Tenant to
the contrary.

	(b)
	In
the event Tenant shall default in the performance of its obligations under this Lease, Landlord, at its option and without any obligation to do so, may require any subtenant to
attorn to Landlord, in which event Landlord shall undertake the obligations of Tenant under such sublease from the time of the exercise of said option to the termination of such sublease;
provided, however, Landlord shall not be liable for any prepaid rents or 

25

 

security
deposit paid by such subtenant to Tenant or for any other prior defaults of Tenant under such sublease. 

	16.6
	Transfer Premium from Assignment or Subletting.    Landlord shall be entitled to receive from Tenant
(as and when received by Tenant) as an item of additional rent one-half of all amounts received by Tenant from the assignee or subtenant in excess of the amounts payable by Tenant
to Landlord hereunder (the "Transfer Premium"). The Transfer Premium shall be reduced by the reasonable brokerage commissions, tenant improvement costs and legal
fees actually paid by Tenant in order to assign the Lease or to sublet a portion of the Premises. The Transfer Premium shall include all Base Rent, additional rent or other consideration of any type
whatsoever payable by the assignee or subtenant in excess of the Base Rent and additional rent payable by Tenant under this Lease. If less than all of the Premises is transferred the Base Rent and the
additional rent shall be determined on a per-leasable-square-foot basis. The Transfer Premium shall also include any money paid to Tenant by the assignee or subtenant in order
to avoid or reduce the Transfer Premium payable to Landlord.

	16.7
	Intentionally Deleted.

	16.8
	Affiliated Entity.    An assignment of the Lease or sublease of all or any portion of the Premises
to any entity which controls or is controlled by Tenant or which acquires all or substantially all of the assets of Tenant or which is the surviving entity resulting from a merger or consolidation of
Tenant (in each such case, an "Affiliate") or the sale of stock in Tenant to the public, shall not require Landlord's consent under section 16.1 of the
Lease, provided that, in the case of a Transfer to an Affiliate, at least fifteen (15) days prior to such assignment or sublease (i) Tenant provides Landlord with reasonable evidence
that any such entity maintains annual revenues sufficient to meet the financial obligations hereunder, (ii) Tenant notifies Landlord in writing of any such assignment or sublease and provides
Landlord with evidence that such assignment or sublease is a Transfer permitted by this section; (iii) prior to the date an assignment or sublease will take effect, the assignee or sublessee
and Tenant shall enter into Landlord's standard consent to sublease agreement or consent to assignment agreement (the "Transfer Agreements"), and
(iv) subject to the limitation set forth in section 16.9 of the Lease, Tenant shall pay the reasonable costs and expenses (including legal fees) incurred by Landlord in confirming that
the assignment or sublease meets the requirements of this Section and in preparing any Transfer Agreement. Whether or not an assignment or sublease to an Affiliate is made pursuant to the terms of
section, Tenant shall not be relieved of its obligations under this Lease. Sections 16.6 and 16.7 of the Lease shall not apply to assignments or subleases to Affiliates.

	16.9
	Landlord's Expenses.    In the event Tenant shall assign this Lease or sublet the Premises or
request the consent of Landlord to any Transfer, then Tenant shall pay Landlord's reasonable costs and expenses incurred in connection therewith, including, but not limited to, attorneys',
architects', accountants', engineers' or other consultants' fees; provided, however, Landlord shall not be entitled to recover more than Two
Thousand Five Hundred Dollars ($2,500.00) of attorneys' fees with respect to any one Transfer. 

17.   DEFAULT; REMEDIES.

	17.1
	Default by Tenant.    Landlord and Tenant hereby agree that the occurrence of any one or more of the
following events is a default by Tenant under this Lease and that said default shall give Landlord the rights described in section 17.2. Landlord or Landlord's authorized agent shall have the
right to execute and to deliver any notice of default, notice to pay rent or quit or any other notice Landlord gives Tenant. 

26

 

	(a)
	Tenant's
failure to make any payment of Base Rent, Tenant's Percentage Share of Operating Expenses, Tenant's Percentage Share of Real Property Taxes or any other payment required to
be made by Tenant hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof from Landlord to Tenant. In the event that Landlord
serves Tenant with a notice to pay rent or quit pursuant to applicable unlawful detainer statutes, such notice shall also constitute the notice required by this section 17.1(a).

	(b)
	The
abandonment of the Premises by Tenant coupled with the non-payment of rent, in which event Landlord shall not be obligated to give any notice of default
to Tenant.

	(c)
	The
failure of Tenant to comply with any of its obligations under sections 23, 25, 26 and 28 where Tenant fails to comply with its obligations or fails to cure any
earlier breach of such obligation within ten (10) days following written notice from Landlord to Tenant. In the event Landlord serves Tenant with a notice to quit or any other notice pursuant
to applicable unlawful detainer statutes, said notice shall also constitute the notice required by this section 17.1(c).

	(d)
	The
failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant (other than those referenced in
sections 17.1(a), (b) and (c), above), where such failure shall continue for a period of ten (10) days after written notice thereof from Landlord to Tenant;
provided, however, that if the nature of Tenant's nonperformance is such that more than ten (10) days are reasonably required for its
cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said ten (10) day period and thereafter diligently pursues such cure to completion. In the event that
Landlord serves Tenant with a notice to quit or any other notice pursuant to applicable unlawful detainer statutes, said notice shall also constitute the notice required by this
section 17.1(d).

	(e)
	(i)
The making by Tenant or any guarantor of Tenant's obligations hereunder of any general arrangement or general assignment for the benefit of creditors; (ii) Tenant or any
guarantor becoming a "debtor" as defined in 11 U.S.C. 101 or any successor statute thereto (unless, in the case of a petition filed against Tenant or guarantor, 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; (iv) the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the
Premises or of Tenants interest in this Lease, where such seizure is not discharged within thirty (30) days; or (v) the insolvency of Tenant. In the event that any provision of this
section 17.1(e) is unenforceable under applicable law, such provision shall be of no force or effect.

	(f)
	The
discovery by Landlord that any financial statement, representation or warranty given to Landlord by Tenant, or by any guarantor of Tenant's obligations hereunder, was materially
false at the time given. Tenant acknowledges that Landlord has entered into this Lease in material reliance on such information.

	(g)
	If
Tenant is a corporation, partnership, limited liability company or similar entity, the dissolution or liquidation of Tenant.

	(h)
	If
Tenant's obligations under this Lease are guaranteed: (i) the death of a guarantor, (ii) the termination of a guarantor's liability with respect to this Lease other
than in accordance with the terms of such guaranty, (iii) a guarantor's becoming insolvent or the 

27

 

subject
of a bankruptcy filing, (iv) a guarantor's refusal to honor the guaranty, or (v) a guarantor's breach of its guaranty obligation on an anticipatory breach basis. 

	17.2
	Remedies.
	(a)
	In
the event of any default or breach of this Lease by Tenant, Landlord may, at any time thereafter, with or without notice or demand, and without limiting Landlord in the exercise of
any right or remedy which Landlord may have by reason of such default:

	(i)
	terminate
Tenant's right to possession of the Premises by any lawful means, in which case this Lease and the term hereof shall terminate and Tenant shall immediately
surrender possession of the Premises to Landlord. If Landlord terminates this Lease, Landlord may recover from Tenant (A) the worth at the time of award of the unpaid rent which had been earned
at the time of termination; (B) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount
of such rental loss that Tenant proves could have been reasonably avoided; (C) 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 have been reasonably avoided; and (D) any other amount necessary to compensate Landlord for all detriment proximately
caused by Tenant's failure to perform its obligations under the Lease or which in the ordinary course of things would be likely to result therefrom, including, but not limited to, the cost of
recovering possession of the Premises, expenses of releasing, inducing necessary renovation and alteration of the Premises, reasonable attorneys' fees, any real estate commissions actually paid by
Landlord and the unamortized value of any free rent, reduced rent, tenant improvement allowance or other economic concessions provided by Landlord. The "worth at time of award" of the amounts referred
to in section 17.2(a)(i)(A) and (B) shall be computed by allowing interest at the lesser of ten percent (10%) per annum or the maximum interest rate permitted by applicable law. The
worth at the time of award of the amount referred to in section 17.2(a)(i)(C) shall be 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%). For purposes of this section 17.2(a)(i), "rent" shall be deemed to be all monetary obligations required to be paid by Tenant pursuant to the terms of
this Lease.

	(ii)
	maintain
Tenant's right of possession, in which event Landlord shall have the remedy described in California Civil Code Section 1951.4 which permits Landlord to
continue this Lease in effect after Tenant's breach and abandonment and recover rent as it becomes due. In the event Landlord elects to continue this Lease in effect, Tenant shall have the right to
sublet the Premises or assign Tenant's interest in the Lease subject to the reasonable requirements contained in section 16 of this Lease and provided further that Landlord shall not require
compliance with any standard or condition contained in section 16 that has become unreasonable at the time Tenant seeks to sublet or assign the Premises pursuant to this
section 17.2(a)(ii).

	(iii)
	collect
sublease rents (or appoint a receiver to collect such rent) and otherwise perform Tenant's obligations at the Premises, it being agreed, however, that
the appointment of a receiver for Tenant shall not constitute an election by Landlord to terminate this Lease.

	(iv)
	pursue
any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the state in which the Premises are located. 

28

 

	(b)
	No
remedy or election hereunder shall be deemed exclusive, but shall, wherever possible, be cumulative with all other remedies at law or in equity. The expiration or termination of
this Lease and/or the termination of Tenant's right to possession of the Premises shall not relieve Tenant of liability under any indemnity provisions of this Lease as to matters occurring or accruing
during the term of the Lease or by reason of Tenant's occupancy of the Premises.

	(c)
	If
Tenant abandons or vacates the Premises, Landlord may re-enter the Premises, and such re-entry shall not be deemed to constitute Landlord's election to
accept a surrender of the Premises or to otherwise relieve Tenant from liability for its breach of this Lease. No surrender of the Premises shall be effective against Landlord unless Landlord has
entered into a written agreement with Tenant in which Landlord expressly agrees to (i) accept a surrender of the Premises and (ii) relieve Tenant of liability under the Lease. The
delivery by Tenant to Landlord of possession of the Premises shall not constitute the termination of the Lease or the surrender of the Premises.

 

	17.3
	Default by Landlord.    Landlord shall not be in default under this Lease unless Landlord fails to
perform obligations required of Landlord within thirty (30) days after written notice by Tenant to Landlord and to the holder of any mortgage or deed of trust encumbering the Project whose name
and address shall have theretofore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligation; provided,
however, that if the nature of Landlord's obligation is such that more than thirty (30) days are required for its cure, then Landlord shall not be in default if
Landlord commences performance within such thirty (30) day period and thereafter diligently pursues the same to completion. In no event shall Tenant have the right to terminate this Lease as a
result of Landlord's default, and Tenant's remedies shall be limited to damages and/or an injunction. Tenant hereby waives its right to recover consequential damages (including, but not limited to,
lost profits) or punitive damages arising out of a Landlord default. This Lease and the obligations of Tenant hereunder shall not be affected or impaired because Landlord is unable to fulfill any of
its obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of a Force Majeure Event, and the time for Landlord's performance shall be extended for the period
of any such delay. Any claim, demand, right or defense by Tenant that arises out of this Lease or the negotiations which preceded this Lease shall be barred unless Tenant commences an action thereon,
or interposes a defense by reason thereof, within six (6) months after the date of the inaction, omission, event or action that gave rise to such claim, demand, right or defense.

	17.4
	Late Charges.    Tenant hereby acknowledges that late payment by Tenant to Landlord of Base Rent,
Tenant's Percentage Share of Operating Expenses or other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which wilt be extremely difficult lo
ascertain. Such costs include, but are not limited to, processing and accounting charges and late charges which may be imposed on Landlord by the terms of any mortgage or trust deed encumbering the
Project. Accordingly, if any installment of Base Rent, Tenant's Percentage Share of Operating Expenses or any other sum due from Tenant shall not be received by Landlord when such amount shall be due,
then, without any requirement for notice or demand to Tenant, Tenant shall immediately pay to Landlord a late charge equal to five percent (5%) of such overdue amount;
provided, however, that Landlord shall waive the late charge one (1) time during each calendar year of the term of this Lease if Tenant
pays all overdue sums within five (5) days after receipt of written notice by Landlord to Tenant advising Tenant that such payment is overdue. The parties hereby agree that such late charge
represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in no event constitute a 

29

 

waiver
of Tenant's default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder, including the assessment of interest under
section 17.5. 

	17.5
	Interest on Past-Due Obligations.    Except as expressly herein provided, any amount due
to Landlord that is not paid when due shall bear interest at the lesser of ten percent (10%) per annum or the maximum rate permitted by applicable law. Payment of such interest shall not excuse or
cure any default by Tenant under this Lease; provided, however, that interest shall not be payable on late charges incurred by Tenant nor on
any amounts upon which late charges are paid by Tenant.

	17.6
	Payment of Rent and Security Deposit After Default.    If Tenant fails to pay Base Rent, Tenant's
Percentage Share of Operating Expenses, parking charges or any other monetary obligation due hereunder on the date it is due, after Tenant's third failure in any twelve (12) month period to pay
any monetary obligation on the date it is due, at Landlord's option, all monetary obligations of Tenant hereunder shall thereafter be paid by cashier's check, and Tenant shall, upon demand, provide
Landlord with an additional security deposit equal to three (3) months' Base Rent. If Landlord has required Tenant to make said payments by cashier's check or to provide an additional security
deposit, Tenant's failure to make a payment by cashier's check or to provide the additional security deposit shall be a default hereunder.

 

	18.
	LANDLORD'S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT.    All covenants and agreements to be kept or performed by Tenant under
this Lease shall be performed by Tenant at Tenant's sole cost and expense and without any reduction of rent. If Tenant shall fail to perform any of its obligations under this Lease, Landlord may, but
shall not be obligated to, after three (3) days' prior written notice to Tenant, make any such payment or perform any such act on Tenant's behalf without waiving its rights based upon any
default of Tenant and without releasing Tenant from any obligations hereunder. Tenant shall pay to Landlord, within ten (10) days after delivery by Landlord to Tenant of statements therefor, an
amount equal to the expenditures reasonably made by Landlord in connection with the remedying by Landlord of Tenant's defaults pursuant to the provisions of this section.

	19.
	INDEMNITY.    Tenant shall indemnify, defend, protect, and hold harmless Landlord, its partners, subpartners, parent
organization, affiliates, subsidiaries, and their respective officers, directors, legal representatives, successors, assigns, agents, servants, employees and independent contractors and each of them
(collectively, "Landlord Parties") from any and all loss, cost, damage, expense and liability (including without limitation court costs and reasonable attorneys' fees)
(collectively, "Claims") incurred in connection with or arising from (a) any cause in or on the Premises or (b) any acts, omissions or negligence of Tenant
or of any person claiming by, through or under Tenant, its partners, subpartners, parent organization, affiliates, subsidiaries and their respective officers, directors, contractors, agents, servants,
employees, invitees, guests or licensees and each of them (collectively, "Tenant Parties") at the Project; provided,
however, that Tenant shall not be required to indemnify and hold Landlord harmless from any Claims for death or personal injury by any person, company or entity resulting
from the negligence or willful misconduct of the Landlord Parties. Landlord shall indemnify, defend, protect, and hold harmless Tenant from any Claim resulting from injuries to persons caused by the
negligence or willful misconduct of Landlord. Tenant's agreement to indemnify and hold Landlord harmless, and Landlord's agreement to indemnify and hold Tenant harmless are not intended to and shall
not relieve any insurance carrier of its obligations under policies required to be carried by Landlord or Tenant, respectively, pursuant to this Lease to the extent such policies cover the results of
such acts, omissions or willful misconduct. The provisions of this Section shall survive the expiration or sooner termination of this Lease. The Indemnified Parties need not first pay any Damages to
be indemnified hereunder. This 

30

 

indemnity
is intended to apply to the fullest extent permitted by applicable law. Notwithstanding the foregoing, Landlord shall have no obligation to compensate Tenant for consequential damages
(including lost profits). 

	20.
	EXEMPTION OF LANDLORD FROM LIABILITY.    Except as may be otherwise provided in section 19, Tenant hereby agrees that
Landlord shall not be liable for injury to Tenant's business or any loss of income therefrom or for loss of or damage to the merchandise, tenant improvements, fixtures, furniture, equipment,
computers, files, automobiles, or other property of Tenant, Tenant's employees, agents, contractors or invitees, or any other person in or about the Project, nor shall Landlord be liable for injury to
the person of Tenant, Tenant's employees, agents, contractors or invitees, whether such damage or injury is caused by or results from any cause whatsoever including, but not limited to, theft,
criminal activity at the Project, negligent security measures, bombings or bomb scares, Hazardous Materials, fire, steam, electricity, gas, water or rain, flooding, breakage of pipes, sprinklers,
plumbing, air conditioning or lighting fixtures, or from any other cause, whether said damage or injury results from conditions arising upon the Premises or upon other portions of the Project, or from
other sources or places, or from new construction or the repair, alteration or improvement of any part of the Project, and regardless of whether the cause of the damage or injury arises out of
Landlord's or its employees', agents' or contractors' negligent or intentional acts. Landlord shall not be liable for any damages arising from any act or neglect of any employees, agents, contractors
or invitees of any other tenant, occupant or user of the Project, nor from the failure of Landlord to enforce the provisions of the lease of any other tenant of the Project. Except as may be otherwise
provided in section 19, Tenant, as a material part of the consideration to Landlord hereunder, hereby assumes all risk of damage to Tenant's property or business or injury to persons in, upon
or about the Project arising from any cause, including Landlord's negligence or the negligence of its employees, agents or contractors, and Tenant hereby waives all claims in respect thereof against
Landlord, its employees, agents and contractors.

	21.
	LANDLORD'S LIABILITY.    Tenant acknowledges that Landlord shall have the right to transfer all or any portion of its
interest in the Project and to assign this Lease to the transferee. Tenant agrees that in the event of such a transfer Landlord shall automatically be released from all lability under this Lease to
the extent the same arises after the date of such transfer, and Tenant hereby agrees to look solely to Landlord's transferee for the performance of Landlord's obligations hereunder after the date of
the transfer. Upon such a transfer, Landlord shall, at its option, return Tenant's security deposit to Tenant or transfer Tenant's security deposit to Landlord's transferee and, in either event,
Landlord shall have no further liability to Tenant for the return of its security deposit. Subject to the rights of any lender holding a mortgage or deed of trust encumbering all or part of the
Project, Tenant agrees to look solely to Landlord's equity interest in the Project for the collection of any judgment requiring the payment of money by Landlord arising out of (a) Landlord's
failure to perform its obligations under this Lease or (b) the negligence or willful misconduct of Landlord, its partners, employees and agents. No other property or assets of Landlord shall be
subject to levy, execution or other enforcement procedure for the satisfaction of any judgment or writ obtained by Tenant against Landlord. No partner, employee or agent of Landlord shall be
personally liable for the performance of Landlord's obligations hereunder or be named as a party in any lawsuit arising out of or related to, directly or indirectly, this Lease and the obligations of
Landlord hereunder. The obligations under this Lease do not constitute personal obligations of the individual partners of Landlord, if any, and Tenant shall not seek recourse against the individual
partners of Landlord or their assets.

	22.
	SIGNS.    Subject to sections 2 and 3 of the Addendum, Tenant shall be allowed to install building and monument
signage to advertise its business at its sole expense. Said signage shall comply with all applicable municipal codes and building/project standards. Otherwise, Tenant shall not make 

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any
changes to the exterior of the Premises, install any exterior lights, decorations, balloons, flags, pennants, banners or painting, or erect or install any signs, windows or door lettering,
plakcards, decorations or advertising media of any type which can be viewed from the exterior of the Premises, without Landlord's prior written consent, which may be given or withheld in Landlord's
sole discretion. Upon vacation of the Premises, Tenant shall remove all signs and repair, paint and/or replace the building facia surface to which its signs are attached. Tenant shall obtain all
applicable governmental permits and approvals for signs and exterior treatments. All signs, decorations, advertising media, blinds, draperies and other window treatment or bars or other security
installations visible from outside the Premises shall be subject to Landlord's approval and conform in all respects to Landlord's requirements. 

	23.
	PARKING.    During the term and subject to the rules and regulations attached hereto as Exhibit "C," as modified by Landlord
from time to time (the "Rules"), Tenant shall be entitled to use the number of parking spaces set forth in section 1.13 in the Common Area parking lot of the
Project. Tenant's parking rights are in common with the parking rights of any other tenants of the Project, and all of Tenant's parking spaces are unreserved parking spaces. Landlord reserves the
right at any time to designate areas in the Common Areas where Tenant may or may not park (e.g., landlord shall have the right to require Tenant to park solely in the parking spaces that are
within the Premises). If Tenant commits or allows in the parking lot any of the activities prohibited by the Lease or the Rules, then Landlord shall have the right, without notice, in addition to such
other rights and remedies that it may have, to remove or tow away the vehicle involved and charge the cost to Tenant, which cost shall be immediately payable by Tenant upon demand by Landlord.
Tenant's parking rights are the personal rights of Tenant, and Tenant shall not transfer, assign or otherwise convey its parking rights separate and apart from this Lease. All parking spaces may only
be used for parking vehicles no larger than full-size passenger automobiles or pick-up trucks. Landlord, in addition to its other remedies, shall have the right to remove or
tow away any other vehicles. Landlord shall not be responsible for enforcing Tenant's parking rights against any third parties provided,
however, if another tenant is interfering with Tenant's parking rights, Landlord shall cooperate with Tenant in attempting to cause the tenant to end such interference,
provided, further, that Landlord shall have no obligation to bring a legal action against the non-complying tenant. Tenant shall not permit or allow any vehicles that belong to or are
controlled by Tenant or Tenant's employees, suppliers, shippers, customers or invitees to be loaded, unloaded or parked in areas other than those designated by Landlord for such activities.

	24.
	BROKER'S FEE.    Tenant and Landlord each represent and warrant to the other that neither has had any dealings or entered
into any agreements with any person, entity, broker or finder other than the persons, if any, listed in section 1.14 in connection with the negotiation of this Lease, and no other broker,
person, or entity is entitled to any commission or finder's fee in connection with the negotiation of this Lease, and Tenant and Landlord each agree to indemnify, defend and hold the other harmless
from and against any claims, damages, costs, expenses, attorneys' fees or liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason
of any dealings, actions or agreements of the indemnifying party. The commission payable to Landlord's broker with respect to this Lease shall be pursuant to the terms of the separate commission
agreement in effect between Landlord and Landlord's broker. Landlord's broker shall pay a portion of its commission to Tenant's broker, if so provided in any agreement between Landlord's broker and
Tenant's broker. Nothing in this Lease shall impose any obligation on Landlord to pay a commission or fee to any party other than Landlord's broker. 

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25.   ESTOPPEL CERTIFICATE

	25.1
	Delivery of Certificate.    Tenant shall from time to time, upon not less than ten (10) days'
prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing certifying such information as Landlord may reasonably request including, but not limited to,
the following: (a) that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in
full force and effect), (b) the date to which the Base Rent and other charges are paid in advance and the amounts so payable, (c) that there are not, to Tenant's knowledge, any uncured
defaults or unfulfilled obligations on the part of Landlord, or specifying such defaults or unfulfilled obligations, if any are claimed, (d) that all tenant improvements to be constructed by
Landlord, if any, have been completed in accordance with Landlord's obligations, and (e) that Tenant has taken possession of the Premises. Any such statement may be conclusively relied upon by
any prospective purchaser or encumbrancer of the Project.

	25.2
	Failure to Deliver Certificate.    At Landlord's option, the failure of Tenant to deliver such
statement within such time shall constitute a default of Tenant hereunder, or it shall be conclusive upon Tenant that (a) this Lease is in full force and effect, without modification except as
may be represented by Landlord, (b) there are no uncured defaults in Landlord's performance, (c) not more than one month's Base Rent has been paid in advance, (d) all tenant
improvements to be constructed by Landlord, if any, have been completed in accordance with Landlord's obligations, and (e) Tenant has taken possession of the Premises.

 

	26.
	FINANCIAL INFORMATION.    From time to time, at Landlord's request, but not more often than once in any twelve-month period,
Tenant shall cause the following financial information to be delivered to Landlord, at Tenant's sole cost and expense, upon not less than ten (10) days' advance written notice from Landlord:
(a) a current financial statement for Tenant and Tenant's financial statements for the previous two accounting years, (b) a current financial statement for any guarantor(s) of this Lease
and the guarantor'(s) financial statements for the previous two accounting years and (c) such other financial information pertaining to Tenant or any guarantor as Landlord or any lender or
purchaser of Landlord may reasonably request. All financial statements shall be prepared in accordance with generally accepted accounting principals consistently applied and, if such is the normal
practice of Tenant, shall be audited by an independent certified public accountant. Tenant hereby authorizes Landlord, from time to time, without notice to Tenant, to obtain a credit report or credit
history on Tenant from any credit reporting company. 

27.   ENVIRONMENTAL MATTERS/HAZARDOUS MATERIALS

	27.1
	Hazardous Materials Disclosure Certificate.    Prior to executing this Lease, Tenant has delivered
to Landlord Tenant's executed initial Hazardous Materials Disclosure Certificate (the "Initial HazMat Certificate"), a copy of which is attached hereto as
Exhibit D. Tenant covenants, represents and warrants to Landlord that the information in the Initial HazMat Certificate is true and correct and accurately describes the use(s) of Hazardous
Materials which will be made and/or used on the Premises by Tenant. Tenant shall, commencing with the date which is one year from the Commencement Date and continuing every year thereafter, deliver to
Landlord an executed Hazardous Materials Disclosure Certifice (the "HazMat Certificate") describing Tenant's then-present use of Hazardous Materials on
the Premises, and any other reasonably necessary documents and information as requested by Landlord. The HazMat Certificates required hereunder shall be in substantially the form attached hereto as
Exhibit D. 

33

 

	27.2
	Definition of Hazardous Materials.    As used in this Lease, the term Hazardous Materials shall mean
and include (a) any hazardous or toxic wastes, materials or substances, and other pollutants or contaminants, which are or become regulated by any Environmental Laws (defined below);
(b) petroleum, petroleum by-products, gasoline, diesel fuel, crude oil or any fraction thereof; (c) asbestos and asbestos-containing material, in any form, whether friable or
non-friable; (d) polychlorinated biphenyls; (e) radioactive materials; (f) lead and lead-containing materials; (g) any other material, waste or
substance displaying toxic, reactive, ignitable or corrosive characteristics, as all such terms are used in their broadest sense, and are defined or become defined by any Environmental Law; or
(h) any materials which cause or threaten to cause a nuisance upon or waste to any portion of the Project or any surrounding property; or pose or threaten to pose a hazard to the health and
safety of persons on the Premises, any other portion of the Project or any surrounding property. For purposes of this Lease, the term "Hazardous Materials" shall not include nominal amounts of
ordinary household cleaners, office supplies and janitorial supplies which are not actionable under any Environmental Laws.

	27.3
	Prohibition; Environmental Laws.    Subject to all of the terms and conditions of this
section 27.3, Tenant shall be entitled to use in the Premises the Hazardous Materials disclosed on the HazMat Certificate attached to this Lease in the manner and in the amounts specified on
the HazMat Certificate. Tenant shall not be entitled to use or store any Hazardous Materials on, in, or about any portion of the Premises and the Project that are not disclosed on the HazMat
Certificate without, in each instance, obtaining Landlord's prior written consent thereto, which may be given or withheld in Landlord's sole discretion. Any such usage and storage may only be to the
extent of the quantities of Hazardous Materials as specified in the then-applicable HazMat Certificate as expressly approved by Landlord. In all events such usage and storage must at all
times be in full compliance with any and all local, state and federal environmental, health and/or safety-related laws, statutes, orders, standards, courts, decisions, ordinances, rules and
regulations (as interpreted by judicial and administrative decisions), decrees, directives, guidelines, permits or permit conditions, currently existing and as amended, enacted, issued or
adopted in the future which are or become applicable to Tenant or all or any portion of the Premises (collectively, the "Environmental Laws") and in compliance with the
recommendations of Landlord's consultants. Tenant agrees that any changes to the type and/or quantities of Hazardous Materials specified in the most recent HazMat Certificate may be implemented only
with the prior written consent of Landlord, which consent may be given or withheld in Landlord's sole discretion. Tenant shall not be entitled nor permitted to install any tanks under, on or about the
Premises for the storage of Hazardous Materials without the express written consent of Landlord, which may be given or withheld In Landlord's sole discretion. Landlord shall have the right, in
Landlord's sole discretion, at all times during the Term of this Lease to (i) inspect the Premises, (ii) conduct tests and investigations to determine whether Tenant is in compliance
with the provisions of this section 27 or to determine if Hazardous Materials are present in, on or about the Project, (iii) request lists of all Hazardous Materials used, stored
or otherwise located on, under or about any portion of the Premises and/or the Common Areas, and (iv) to require Tenant to complete a survey of its use, storage and handling of Hazardous
Materials in the Premises, using a form and following procedures designated by Landlord, in Landlord's sole discretion (the "Survey"). Tenant shall reimburse
Landlord for the cost of all such inspections, tests and investigations, and all costs associated with any Survey if it is determined that Tenant is not in compliance with its obligations under this
section 27. If as a result of an inspection, test or Survey Landlord determines, in Landlord's sole discretion, that Tenant should implement or perform safety, security or compliance measures,
Tenant shall within thirty (30) days after written request by Landlord perform such measures, at Tenant's sole cost and expense. The 

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aforementioned
rights granted herein to Landlord and its representatives shall not create (a) a duty on Landlord's part to inspect, test, investigate, monitor or otherwise observe the Premises
or the activities of Tenant and Tenant Parties with respect to Hazardous Materials, including without limitation, Tenant's operation, use and any remediation relating thereto, or (b) liability
on the part of Landlord and its representatives for Tenant's use, storage, disposal or remediation of Hazardous Materials, it being understood that Tenant shall be solely responsible for all liability
in connection therewith. 

	27.4
	Tenant's Environmental Obligations.    Tenant shall give to Landlord immediate verbal and
follow-up written notice of any spills, releases, discharges, disposals, emissions, migrations, removals or transportation of Hazardous Materials on, under or about any portion of the
Premises or in any Common Areas; provided that Tenant has actual, implied or constructive knowledge of such event(s). Tenant, at its sole cost and expense, covenants and warrants to promptly
investigate, clean up, remove, restore and otherwise remediate ("including, without limitation, preparation of any feasibility studies or reports and the performance of any and all closures) any
spill, release, discharge, disposal, emission, migration or transportation of Hazardous Materials arising from or related to the intentional or negligent acts or omissions of Tenant or Tenant Parties
such that the affected portions of the Project and any adjacent property are returned to the condition existing prior to the appearance of such Hazardous Materials. Any such investigation, clean up,
removal, restoration and other restoration shall only be performed after Tenant has obtained Landlord's prior written consent, which consent shall not be unreasonably withheld so long as such actions
would not potentially have a material adverse long-term or short-term effect on any portion of the Project. Notwithstanding the foregoing, Tenant shall be entitled to respond
immediately to an emergency without first obtaining Landlord's prior written consent. Tenant, at its sole cost and expense, shall conduct and perform, or cause to be conducted and performed, all
closures as required by any Environmental Laws or any agencies or other governmental authorities having jurisdiction thereof. If Tenant fails to so promptly investigate, clean up, remove, restore,
provide closure or otherwise so remediate, Landlord may, but without obligation to do so, take any and all steps necessary to rectify the same, and Tenant shall promptly reimburse Landlord, upon
demand, for all costs and expenses to Landlord of performing investigation, cleanup, removal, restoration, closure and remediation work. All such work undertaken by Tenant, as required herein, shall
be performed in such a manner so as to enable Landlord to make full economic use of the Premises and other portions of the Project after the satisfactory completion of such work.

	27.5
	Environmental Indemnity.    In addition to Tenant's other indemnity obligations under this Lease,
Tenant agrees to, and shall, protect, indemnify, defend (with counsel acceptable to Landlord) and hold Landlord and the other Indemnitees harmless from and against any and all loss, cost, damage,
liability or expense (including, without limitation, diminution in value of any portion of the Premises or the Project, damages for the loss of or restriction on the use of rentable or usable space,
and from any adverse impact of Landlord's marketing of any space within the Project) arising at any time during or after the term of this Lease in connection with or related to, directly or
indirectly, the use, presence, transportation, storage, disposal, migration, removal, spill, release or discharge of Hazardous Materials on, in or about any portion of the Project as a result
(directly or indiredty) of the intentional or negligent acts or omissions of Tenant or Tenant Parties. Neither the written consent of Landlord to the presence, use or storage of Hazardous Materials
in, on, under or about any portion of the Project nor the strict compliance by Tenant with all Environmental Laws shall excuse Tenant from its obligations of indemnification pursuant hereto. Tenant
shall not be relieved of its indemnification obligations under the provisions of this section 27.5 due to Landlord's status as either an "owner" or "operator" under any
Environmental Laws. 

35

 

	27.6
	Survival.    Tenant's obligations and liabilities pursuant to the provisions of this
section 27 shall survive the expiration or earlier termination of this Lease. If it is determined by Landlord that the condition of all or any portion of the Project is not in compliance with
the provisions of this Lease with respect to Hazardous Materials, including without limitation, all Environmental Laws at the expiration or earlier termination of this Lease, then Landlord may require
Tenant to hold over possession of the Premises until Tenant can surrender the Premises to Landlord in the condition in which the Premises existed as of the Commencement Date and prior to the
appearance of such Hazardous Materials except for reasonable wear and tear, including without limitation, the conduct or performance of any closures as required by any Environmental Laws. The burden
of proof hereunder shall be upon Tenant. For purposes hereof, the term "reasonable wear and tear" shall not include any deterioration in the condition or diminution of the value of any portion of the
Project in any manner whatsoever related to, directly or indirectly, Hazardous Materials. Any such holdover by Tenant will be with Landlord's consent, will not be terminable by Tenant in any event or
circumstance and will otherwise be subject to the provisions of section 33 of this Lease.

	27.7
	No Liability for Acts of Others.    Notwithstanding anything to the contrary contained in this
Lease, Tenant shall only be liable pursuant to this section 27 for the acts of Tenant and Tenant Parties, and Tenant shall not be liable for the acts of persons or entities other than
Tenant and Tenant Parties nor shall Tenant be responsible or liable for contamination that existed at the Premises on the Commencement Date or for contamination emanating from neighboring land. 

28.   SUBORDINATION

	28.1
	Effect of Subordination.    This Lease, and any Option (as defined below) granted hereby,
upon Landlord's written election, shall be subject and subordinate to any ground lease, mortgage, deed of trust or any other hypothecation or security now or hereafter placed upon the Project and to
any and all advances made on the security thereof and to all renewals, modification, consolidations, replacements and extensions thereof. Notwithstanding such subordination, Tenant's right to quiet
possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and observe and perform all of the provisions of this Lease, unless this Lease is
otherwise terminated pursuant to its terms. At the request of any mortgage, trustee or ground lessor, Tenant shall attorn to such person or entity. If any mortgagee, trustee or ground lessor shall
elect to have this Lease and any Options granted hereby prior to the lien of its mortgage, deed of trust or ground lease, and shall give written notice thereof to Tenant, this Lease and such Options
shall be deemed prior to such mortgage, deed of trust or ground lease, whether this Lease or such Options are dated prior or subsequent to the date of said mortgage, deed of trust or ground lease or
the date of recording thereof. In the event of the foreclosure of a security device, the new owner shall not (a) be liable for any act or omission of any prior landlord or with respect to
events occurring prior to its acquisition of title, (b) be liable for the breach of this Lease by any prior landlord, (c) be subject to any offsets or defenses which Tenant may have
against the prior landlord or (d) be liable to Tenant for the return of its security deposit.

	28.2
	Execution of Documents.    Tenant agrees to execute and acknowledge any documents Landlord
reasonably requests Tenant execute to effectuate an attornment, a subordination, or to make this Lease or any Option granted herein prior to the lien of any mortgage, deed of trust or ground lease, as
the case may be. Tenant's failure to execute such documents within ten (10) days after written demand shall constitute a default by Tenant hereunder. 

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29.   OPTIONS

	29.1
	Definition.    As used in this Lease, the word "Option" has the following meaning: (1) the
right or option to extend the term of this Lease or to renew this Lease, (2) the option or right of first refusal to lease the Premises or the right of first offer to lease the Premises or the
right of first refusal to lease other space within the Project or the right of first offer to lease other space within the Project, and (3) the right or option to terminate this Lease prior to
its expiration date or to reduce the size of the Premises. Any Option granted to Tenant by Landlord must be evidenced by a written option agreement attached to this Lease as a rider or addendum or
said option shall be of no force or effect.

	29.2
	Options Personal.    Each Option granted to Tenant in this Lease, if any, is personal to the
original Tenant and any Affiliate (as defined in 18.8) to whom Tenant assigns its interest in this Lease (an "Assuming Affiliate") and may be exercised only by the original Tenant or an
Assuming Affiliate while occupying the entire Premises and may not be exercised or be assigned, voluntarily or involuntarily, by or to any person or entity other than Tenant or an Assuming Affiliate,
including, without limitation, any permitted transferee as defined in section 16. The Options, if any, herein granted to Tenant are not assignable separate and apart from this Lease, nor may
any Option be separated from this Lease in any manner, either by reservation or otherwise. If at any time an Option is exercisable by Tenant or an Assuming Affiliate, the Lease has been assigned to a
person or entity other than an Affiliate or a sublease exists as to any portion of the Premises to a person or entity other than an Affiliate, the Option shall be deemed null and void and neither
Tenant nor any assignee or subtenant shall have the right to exercise the Option.

	29.3
	Multiple Options.    In the event that Tenant has multiple Options to extend or renew this Lease, a
later Option cannot be exercised unless the prior Option to extend or renew this Lease has been so exercised.

	29.4
	Effect of Default on Options.    Tenant shall have no right to exercise an Option (i) during
the time commencing from the date Landlord gives to Tenant a notice of default pursuant to section 17.1 and continuing until the noncompliance alleged in said notice of default is cured,
or (ii) if Tenant is in default of any of the terms, covenants or conditions of this Lease. The period of time within which an Option may be exercised shall not be extended or enlarged by
reason of Tenant's inability to exercise an Option because of the provisions of this section.

	29.5
	Limitation on Options.    Notwithstanding anything to the contrary contained in any rider or
addendum to this Lease, any options, rights of first refusal or rights of first offer granted hereunder shall be subject and secondary to Landlord's right of first offer and lease any such space to
any tenant who is then occupying or leasing such space at the time the space becomes available for leasing and shall be subject and subordinated to any other options, rights of first refusal or rights
of first offer previously given to any other person or entity.

	29.6
	Guarantees.    Notwithstanding anything to the contrary contained in any rider or addendum to this
Lease, Tenant's right to exercise and the effectiveness of an Option is conditioned upon Landlord's receipt from any prior tenant that has not been expressly released from liability under this Lease,
and any guarantor of any obligation of Tenant under this Lease, of a written agreement reaffirming such person's obligations under this Lease or the guaranty, as modified by Tenant's exercise of
the Option.

 

	30.
	LANDLORD RESERVATIONS.    Landlord shall have the right: (a) to change the name and address of the Project or Building
upon not less than ninety (90) days prior written notice; provided, however, in such event Landlord shall reimburse Tenant for all
reasonable costs Tenant pays to third parties for the replacement of pre-printed stationery, address labels and other 

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packaging
in an amount not to exceed $5000; (b) to permit any tenant the exclusive right to conduct any business as long as such exclusive right does not conflict with any rights expressly
given herein; and (c) to place signs, notices or displays upon the roof, interior or exterior of the Building or Common Areas of the Project. Landlord reserves the right to use the exterior
walls of the Premises, and the area beneath, adjacent to and above the Premises together with the right to install, use, maintain and replace equipment, machinery, pipes, conduits and wiring through
the Premises, which serve other parts of the Project provided that Landlord's use does not unreasonably interfere with Tenant's use of the Premises. 

	31.
	CHANGES TO PROJECT.    Landlord shall have the right, in Landlord's sole discretion, from time to time, to make changes to
the size, shape, location, number and extent of the improvements comprising the Project (hereinafter referred to as "Changes") including, but not limited to, the interior and exterior of buildings,
the Common Ardeas, HVAC, electrical systems, communication systems, fire protection and detection systems, plumbing systems, security systems, parking control systems, driveways, entrances, parking
spaces, parking areas and landscaped areas; provided, however, that Landlord shall not materially change the location of the exterior walls of
the Building or materially change the location of the Common Areas within the Building in a way that would materially and adversely effect Tenant's use of the Premises without the prior written
consent of Tenant, which consent shall not be unreasonably withheld, conditioned or delayed. In connection with the Changes, Landlord may, among other things, erect scaffolding or other necessary
structures at the Project, limit or eliminate access to portions of the Project, including portions of the Common Areas, or perform work in the Building, which work may create noise, dust or leave
debris in the Building. Tenant hereby agrees that such Changes and Landlord's actions in connection with such Changes shall in no way constitute a constructive eviction of Tenant or entitle Tenant to
any abatement of rent. Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant's business arising from the Changes,
nor shall Tenant be entitled to any compensation or damages from Landlord for any inconvenience or annoyance occasioned by such Changes or Landlord's action in connection with such Changes. If a
Change will materially interfere with Tenant's use of the Premises, Landlord shall use commercially reasonable efforts to provide Tenant with advance notice of such Change. Landlord shall use
commercially reasonable efforts to minimize disruption to Tenant's business operations caused by Changes.

	32.
	INTENTIONALLY DELETED. 

 
	33.
	HOLDING OVER.    If Tenant remains in possession of the Premises or any part thereof after the expiration or earlier
termination of the term hereof with Landlord's consent, such occupancy shall be a tenancy from month to month upon all the terms and conditions of this Lease pertaining to the obligations of Tenant,
except that the Base Rent payable shall be the one hundred fifty percent (150%) of the Base Rent payable immediately preceding the termination date of this Lease, and all Options, if any, shall be
deemed terminated and be of no further effect. If Tenant remains in possession of the Premises or any part thereof, after the expiration of the term hereof without Landlord's consent, Tenant shall, at
Landlord's option, be treated as a tenant at sufferance or a trespasser. Nothing contained herein shall be construed to constitute Landlord's consent to Tenant holding over at the expiration or
earlier termination of the Lease term or to give Tenant the right to hold over after the expiration or earlier termination of the Lease term. Tenant hereby agrees to indemnify, hold harmless and
defend Landlord from any cost, loss, claim or liability (including attorneys' fees) Landlord may incur as a result of Tenant's failure to surrender possession of the Premises to Landlord upon the
termination of this Lease. 

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34.   LANDLORD'S ACCESS

	34.1
	Access.    Landlord and Landlord's agents, contractors and employees shall have the right to enter
the Premises at reasonable times upon reasonable advance notice (at least 24 hours telephonic notice) to Tenant (except in the case of any emergency, where no advance notice shall be
required) for the purpose of inspecting the Premises, performing any services required of Landlord, showing the Premises to prospective purchases, lenders or tenants, undertaking safety measures and
making alterations, repairs, improvements or additions to the Premises or to the Project; provided, however, that Landlord shall only have the
right to show the Premises to prospective tenants during the last one hundred eighty (180) days of the term of this Lease. In the event of an emergency, Landlord may gain access to the Premises
by any reasonable means, and Landlord shall not be liable to Tenant for damage to the Premises or to Tenant's property resulting from such access. Landlord may at any time place on or about the
Building "for sale" or "for lease" signs and Landlord may at any time during the last one hundred twenty (120) days of the term hereof place on or about the Premises "for lease" signs.

	34.2
	Keys.    Landlord shall have the right to retain keys to the locks on the entry doors to the
cPremises and all interior doors at the Premises.  

	35.
	SECURITY MEASURES.    Tenant hereby acknowledges that Landlord shall have no obligation whatsoever to provide guard service
or other security measures for the benefit of the Premises or the Project, and Landlord shall have no liability to Tenant due to its failure to provide such services. Tenant assumes all responsibility
for the protection of Tenant, its agents, employees, contractors and invitees and the property of Tenant and of Tenant's agents, employees, contractors and invitees from acts of third parties. Nothing
herein contained shall prevent Landlord, at Landlord's sole option, from implementing security measures for the Project or any part thereof, in which event Tenant shall participate in such security
measures and the cost thereof shall be included within the definition of Operating Expenses, and Landlord shall have no liability to Tenant and its agents, employees, contractors and invitees arising
out of Landlord's negligent provision of security measures. Landlord shall have the right, but not the obligation, to require all persons entering or leaving the Project to identify themselves to a
security guard and to reasonably establish that such person should be permitted access to the Project.

	36
	EASEMENTS.    Landlord reserves to itself the right, from time to time, to grant such easements, rights and dedications that
Landlord deems necessary or desirable, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonably interfere
with the use of the Premises by Tenant. Tenant shall sign any of the aforementioned documents within ten (10) days after Landlord's request, and Tenant's failure to do so shall constitute a
default by Tenant. The obstruction of Tenant's view, air or light by any structure erected in the vicinity of the Project, whether by Landlord or third parties, shall in no way affect this Lease or
impose any liability upon Landlord.

	37
	TRANSPORTATION MANAGEMENT.    Tenant shall fully comply at its sole expense with all present or future programs implemented or
required by any governmental or quasi-governmental entity or Landlord to manage parking, transportation, air pollution or traffic in and around the Project or the metropolitan area in which the
Project is located.

	38
	SEVERABILITY.    The invalidity of any provision of this Lease as determined by a court of competent jurisdiction shall in no
way affect the validity of any other provision hereof.

	39
	TIME OF ESSENCE.    Time is of the essence with respect to each of the obligations to be performed by Tenant and Landlord
under this Lease. 

39

 
	40
	DEFINITION OF ADDITIONAL RENT.    All monetary obligations of Tenant to Landlord under the terms of this Lease, including but
not limited to, Base Rent, Tenant's Percentage Share of Operating Expenses and late charges shall be deemed to be rent.

	41
	INCORPORATION OF PRIOR AGREEMENTS.    This Lease and the attachments listed in section 1.15 contain all agreements of
the parties with respect to the lease of the Premises and any other matter mentioned herein. No prior or contemporaneous agreement or understanding pertaining to any such matter shall be effective.
Except as otherwise stated in this Lease, Tenant hereby acknowledges that no real estate broker nor Landlord nor any employee or agents of any of said persons has made any oral or written warranties
or representations to Tenant concerning the condition or use by Tenant of the Premises or the Project or concerning any other matter addressed by this Lease.

	42
	AMENDMENTS.    This Lease may be modified in writing only, signed by the parties in interest at the time of the modification.

	43
	NOTICES.    All notices required or permitted by this Lease shall be in writing and may be delivered (a) in person
(by hand, by messenger or by courier service), (b) by U.S. Postal Service regular mail, (c) by U.S. Postal Service certified mail, return receipt requested,
(d) by U.S. Postal Service Express Mail, Federal Express or other overnight courier, or (e) by facsimile transmission, and shall be deemed sufficiently given if served in a manner
specified in this section. The addresses set forth in section 1.16 of this Lease shall be the address of each party for notice purposes. Landlord or Tenant may by written notice to the other
specify a different address for notice purposes, except that upon Tenant's taking possession of the Premises, the Premises shall constitute Tenant's address for the purpose of mailing or delivering
notices to Tenant. A copy of all notices required or permitted to be given to Landlord hereunder shall be concurrently transmitted to such party or parties at such addresses as Landlord may from time
to time hereinafter designate by written notice to Tenant. Any notice sent by regular mail or by certified mail, return receipt requested, shall be deemed given three (3) days after deposited
with the U.S. Postal Service. Notices delivered by U.S. Express Mail, Federal Express or other courier shall be deemed given on the date delivered by the carrier to the appropriate
party's address for notice purposes. If any notice is transmitted by facsimile transmission, the notice shall be deemed delivered upon telephone confirmation of receipt of the transmission thereof at
the appropriate party's address for notice purposes. A copy of all notices delivered to a party by facsimile transmission shall also be mailed to the party on the date the facsimile transmission is
completed. If notice is received on Saturday, Sunday or a legal holiday, it shall be deemed received on the next business day. Nothing contained herein shall be construed to limit Landlord's right to
serve any notice to pay rent or quit or similar notice by any method permitted by applicable law, and any such notice shall be effective if served in accordance with any method permitted by applicable
law whether or not the requirements of this section have been met.

	44
	WAIVERS.    No waiver by Landlord or Tenant of any provision hereof shall be deemed a waiver of any other provision hereof or
of any subsequent breach by Landlord or Tenant of the same or any other provision. Landlord's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Landlord's
consent to or approval of any subsequent act by Tenant. The acceptance of rent hereunder by Landlord shall not be a waiver of any preceding breach by Tenant of any provision hereof, other than the
failure of Tenant to pay the particular rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent. No acceptance by Landlord of partial
payment of any sum due from Tenant shall be deemed a waiver by landlord of its right to receive the full amount due, nor shall any endorsement or statement on any check or accompanying letter from
Tenant be deemed an accord and satisfaction. Tenant hereby waives California Code of Civil Procedure section 1179 and Civil Code section 3275 which allow tenants to obtain relief
from the forfeiture of a lease. Tenant hereby 

40

 

waives
for Tenant and all those claiming under Tenant all rights now or hereafter existing to redeem by order or judgment of any court or by legal process or writ Tenant's right of occupancy of the
Premises after any termination of this Lease. 

	45
	COVENANTS.    This Lease shall be construed as though Landlord's covenants contained herein are independent and not dependent
and Tenant hereby waives the benefit of any statute to the contrary. All provisions of this Lease to be observed or performed by Tenant are both covenants and conditions.

	46
	BINDING EFFECT; CHOICE OF LAW.    Subject to any provision hereof restricting assignment or subletting by Tenant, this Lease
shall bind the parties, their heirs, personal representatives, successors and assigns. This Lease shall be governed by the laws of the state in which the Project is located, and any litigation
concerning this Lease between the parties hereto shall be initiated in the county in which the Project is located.

	47
	ATTORNEYS' FEES.    If Landlord or Tenant brings an action to enforce the terms hereof or declare rights hereunder, the
prevailing party in any such action, or appeal thereon, shall be entitled to its reasonable attorneys' fees and court costs to be paid by the losing party as fixed by the court in the same or separate
suit, and whether or not such action is pursued to decision or judgment. The attorneys' fee award shall not be computed in accordance with any court fee schedule, but shall be such as to fully
reimburse all attorneys' fees and court costs reasonably incurred in good faith. Landlord shall be entitled to reasonable attorneys' fees and all other costs and expenses incurred in the preparation
and service of notices of default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such default. Landlord and Tenant agree that
attorneys' fees incurred with respect to defaults and bankruptcy are actual pecuniary losses within the meaning of section 365(b)(1)(B) of the Bankruptcy Code or any successor statute.

	48
	AUCTIONS.    Tenant shall not conduct, nor permit to be conducted, either voluntarily or involuntarily, any auction or
going-out-of-business sale upon the Premises or the Common Areas.

	49
	MERGER.    The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, or a termination by
Landlord, shall not result in the merger of Landlord's and Tenant's estates and shall, at the option of the Landlord, terminate all or any existing subtenancies or may, at the option of Landlord,
operate as an assignment to Landlord of any or all of such subtenancies.

	50
	QUIET POSSESSION.    Subject to the other terms and conditions of this Lease, and the rights of any lender, and provided
Tenant is not in default hereunder, Tenant shall have quiet possession of the Premises for the entire term hereof subject to all of the provisions of this Lease.

	51
	AUTHORITY.    If Tenant is a corporation, trust, limited liability company, limited liability partnership or general or
limited partnership, Tenant, and each individual executing this Lease on behalf of such entity, represents and warrants that such individual is duly authorized to execute and deliver this Lease on
behalf of said entity, that said entity is duly authorized to enter into this Lease, and that this Lease is enforceable against said entity in accordance with its terms. If Tenant is a corporation,
trust, limited liability company, limited liability partnership or other partnership, Tenant shall deliver to Landlord upon demand evidence of such authority satisfactory to Landlord.

	52
	CONFLICT.    Except as otherwise provided herein to the contrary, any conflict between the printed provisions, exhibits,
addenda or riders of this Lease and the typewritten or handwritten provisions, if any, shall be controlled by the typewritten or handwritten provisions.

	53
	MULTIPLE PARTIES.    If more than one person or entity is named as Tenant herein, the obligations of Tenant shall be the joint
and several responsibility of all persons or entities named herein as 

41

 

Tenant.
Service of a notice in accordance with section 43 on one Tenant shall be deemed service of notice on all Tenants. 

	54
	INTERPRETATION.    This Lease shall be interpreted as if it was prepared by both parties, and ambiguities shall not be
resolved in favor of Tenant because all or a portion of this Lease was prepared by Landlord. The captions contained in this Lease are for convenience only and shall not be deemed to limit or alter the
meaning of this Lease. As used in this Lease, the words tenant and landlord include the plural as well as the singular. Words used in the neuter gender include the masculine and feminine gender.

	55
	PROHIBITION AGAINST RECORDING.    Neither this Lease, nor any memorandum, affidavit or other writing with respect thereto,
shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant. Landlord shall have the right to record a memorandum of this Lease, and Tenant shall execute, acknowledge and
deliver to Landlord for recording any memorandum prepared by Landlord.

	56
	RELATIONSHIP OF PARTIES.    Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third
party to create the relationship of principal and agent, partnership, joint venture or any association between Landlord and Tenant.

	57
	RULES AND REGULATIONS.    Tenant agrees to abide by and conform to the Rules and to cause its employees, suppliers, customers
and invitees to so abide and conform. Landlord shall have the right, from time to time, to modify, amend and enforce the Rules in a nondiscriminatory manner. Landlord shall not be responsible to
Tenant for the failure of other persons, including, but not limited to, other tenants, their agents, employees and invitees, to comply with the Rules. Modifications or amendments to the Rules shall be
binding upon Tenant provided that Tenant has received written notice thereof.

	58
	RIGHT TO LEASE.    Landlord reserves the absolute right to effect such other tenancies in the Project as Landlord in its sole
discretion shall determine, and Tenant is not relying on any representation that any specific tenant or number of tenants will occupy the Project.

	59
	CONFIDENTIALITY.    Tenant acknowledges and agrees that the terms of this Lease are confidential and constitute proprietary
information of Landlord. Disclosure of the terms hereof could adversely affect the liability of Landlord to negotiate other leases with respect to the Project and may impair Landlord's relationship
with other tenants of the Project. Tenant agrees that it and its partners, officers, directors and employees shall use commercially reasonable efforts not disclose the terms of this Lease to any
person or entity except (a) the brokers, attorneys and accountants employed by Tenant who are involved in this transaction and (b) as required in any legal proceeding or in connection
with any other mandatory disclosure obligation of Tenant, without the prior written consent of Landlord, which may be given or withheld by Landlord, in Landlord's sole discretion. Tenant shall
instruct its brokers, attorneys and accountants to maintain the confidentiality of the terms of this Lease. It is understood and agreed that damages alone would be inadequate remedy for the breach of
this provision by Tenant, and Landlord shall also have the right to seek specific performance of this provision and to seek injunctive relief to prevent its breach or continued breach.

	60
	WAIVER OF JURY TRIAL.    LANDLORD AND TENANT HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRAIL BY JURY OF ANY CAUSE OF ACTION,
CLAIM, COUNTERCLAIM OR CROSS-COMPLAINT IN ANY ACTION, PROCEEDING AND/OR HEARING BROUGHT BY EITHER LANDLORD AGAINST TENANT OR TENANT AGAINST LANDLORD ON ANY MATTER WHATSOEVER ARISING OUT OF, OR IN ANY
WAY CONNECTED WITH, THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE PREMISES, OR ANY CLAIM OF 

42

 

INJURY
OR DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY LAW, STATUTE, OR REGULATION, EMERGENCY OR OTHERWISE, NOW OR HEREAFTER IN EFFECT. 

LANDLORD
AND TENANT ACKNOWLEDGE THAT THEY HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN AND, BY EXECUTION OF THIS LEASE, SHOW THEIR INFORMED AND VOLUNTARY
CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LANDLORD AND TENANT
WITH RESPECT TO THE PREMISES. TENANT ACKNOWLEDGES THAT IT HAS BEEN GIVEN THE OPPORTUNITY TO HAVE THIS LEASE REVIEWED BY ITS LEGAL COUNSEL PRIOR TO ITS EXECUTION. PREPARATION OF THIS LEASE BY LANDLORD
OR LANDLORD'S AGENT AND SUBMISSION OF SAME TO TENANT SHALL NOT BE DEEMED AN OFFER BY LANDLORD TO LEASE THE PREMISES TO TENANT OR THE GRANT OF AN OPTION TO TENANT TO LEASE THE PREMISES. THIS LEASE
SHALL BECOME BINDING UPON LANDLORD ONLY WHEN FULLY EXECUTED BY BOTH PARTIES AND WHEN LANDLORD HAS DELIVERED A FULLY EXECUTED ORIGINAL OF THIS LEASE TO TENANT. 

LANDLORD:

The
Realty Associates Fund III, L.P., a Delaware limited partnership 

By:    Realty
Associates Fund III GP Limited Partnership, a Delaware limited partnership, its general partner 

By:    Realty
Associates Fund III LLC, a Delaware limited liability company, its sole general partner 

By:    Realty
Associates Fund III Trust, a Massachusetts business trust, sole Member 

	
 	
 	

By:	

/s/  SCOTT W. AMLING      
 (Officer)    Scott W. Amling

                Regional Director

By:    Realty
Associates Fund III Texas Corporation, a Texas corporation, general partner 

	
 	
 	

By:	

/s/  SCOTT W. AMLING      
 (Officer)    Scott W. Amling

                Regional Director

43

 

TENANT(1):

Accuray
Incorporated, a California corporation

	
 	
 	

By:	

/s/  CHRIS A. RAANES      
Chris A. Raanes
 (print name)
	
 	
 	

Its:	

Chief Operating Officer
 (print title)
	
 	
 	

By:	

/s/  ROBERT E. MCNAMARA      
 Robert E. McNamara

(print name)
	
 	
 	

Its:	

Chief Operating Officer
 (print title)

	(1)
	If
Tenant is a corporation, the authorized officers must sign on behalf of the corporation and indicate the capacity in which they are signing. The Lease must be executed by the
president or vice president and the secretary or assistant secretary, unless the bylaws or a resolution of the board of directors shall otherwise provide, in which event, the bylaws or a certified
copy of the resolution, as the case may be, must be attached to this Lease. 

44

  

 
 

EXHIBIT A
  
    PREMISES    
    

        Exhibit A is intended only to show the general layout of the Premises, and shall not be interpreted to increase the size of the Premises beyond the number
of leasable square feet set forth in section 1.5. Exhibit A is not to be scaled and any measurements or distances shown on Exhibit A are approximates only. 

        [to
be attached] 

45

 
 
 

EXHIBIT A    
    

[PREMISES MAP OMITTED] 

46

 
 
 

EXHIBIT B    
    

        Intentionally deleted. 

47

 
 
 

EXHIBIT C
  
    RULES AND REGULATIONS
  
    GENERAL RULES    
    

        Tenant shall faithfully observe and comply with the following Rules and Regulations: 

        1.     Tenant
shall not alter any locks or install any new or additional locks or bolts on any doors or windows of the Premises without obtaining Landlord's prior written
consent. Tenant shall bear the cost of any lock changes or repairs required by Tenant. 

        2.     Access
to the Project may be refused unless the person seeking access has proper identification or has a previously received authorization for access to the Project.
Landlord and its agents shall in no case be liable for damages for any error with regard to the admission to or exclusion from the Project of any person. In case of invasion, mob, riot, public
excitement or other commotion, Landlord reserves the right to prevent access to the Project during the continuance thereof by any means it deems appropriate for the safety and protection of life
and property. 

        3.     No
cooking shall be done or permitted on the Premises, nor shall the Premises be used for any improper, objectionable or immoral purposes. Notwithstanding the foregoing,
Underwriters' Laboratory-approved equipment and microwave ovens may be used in the Premises for heating food and brewing coffee, tea, hot chocolate and similar beverages for employees and visitors of
Tenant, provided that such use is in accordance with all applicable federal, state and city laws, codes, ordinances, rules and regulations; and provided further that such cooking does not result in
odors escaping from the Premises. 

        4.     No
boring or cutting for wires shall be allowed without the consent of Landlord. Tenant shall not install any radio or television antenna, satellite dish, loudspeaker or
other device on the roof or exterior walls of the Building. Tenant shall not interfere with broadcasting or reception from or in the Project or elsewhere. 

        5.     Landlord
reserves the right to exclude or expel from the Project any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or
who shall in any manner do any act in violation of any of these Rules and Regulations. 

        6.     Tenant
shall store all its trash and garbage within the interior of the Premises or in other locations approved by Landlord, in Landlord's sole discretion. No material
shall be placed in the trash boxes or receptacles if such materials is of such nature that it may not be disposed of in the ordinary and customary manner of removing and disposing of trash in the
vicinity of the Project without violation of any law or ordinance governing such disposal. 

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

 
 

PARKING RULES    
    

        1.     Tenant
shall not permit or allow any vehicles that belong to or are controlled by Tenant or Tenant's employees, suppliers, shippers, customers or invitees to be loaded,
unloaded or parked in areas other than those designated by Landlord for such activities and at times approved by Landlord. Users of the parking area will obey all posted signs and park only in the
areas designated for vehicle parking. Tenant and its customers, employees, shippers and invitees shall comply with all rules and regulations adopted by Landlord from time to time relating to truck
parking and/or truck loading and unloading. 

        2.     Landlord
reserves the right to relocate all or a part of parking spaces within the parking area. 

48

 

        3.     Landlord
will not be responsible for any damage to vehicles, injury to persons or loss of property, all of which risks are assumed by the party using the
parking area. 

        4.     The
maintenance, washing, waxing or cleaning or vehicles in the parking area or Common Areas is prohibited. 

        5.     Tenant
shall be responsible for seeing that all of its employees, agents, contractors and invitees comply with the applicable parking rules, regulations, laws
and agreements. 

        6.     At
Landlord's request, Tenant shall provide Landlord with a list which includes the name of each person using the parking facilities based on Tenant's parking rights
under this Lease and the license plate number of the vehicle being used by that person. Tenant shall provide Landlord with an updated list within five (5) days after any part of the list
becomes inaccurate. 

Landlord
reserves the right at any time to change or rescind any one or more of these Rules and Regulations, or to make such other and further reasonable Rules and Regulations as in Landlord's
judgment may from time to time be necessary for the management, safety, care and cleanliness of the Project, and for the preservation of good order therein, as well as for the convenience of other
occupants and tenants therein; provided, however, any new rule that will materially and adversely interfere with Tenant's business operations
(as they exist on the Commencement Date) shall require Tenant's prior written consent (such consent not to be unreasonably withheld). Landlord may waive any one or more of these Rules and
Regulations for the benefit of any particular tenant, but not such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any other tenant, nor prevent Landlord
from thereafter enforcing any such Rules or Regulations against any or all tenants of the Project. Tenant shall be deemed to have read these Rules and Regulations and to have agreed to abide by them
as a condition of its occupancy of the Premises. 

49

  

 
 

EXHIBIT D
  
    Form of HazMat Certificate
  
    General Information    
    

Name
of Responding Company: Accuray Inc. 

Mailing
Address: 1310 Chesapeake Terrace, Sunnyvale, CA 94089 

Signature:
(Steve Strunk) 

Title:
Director of Manufacturing Phone: (408) 716-4795 

Date:
6/30/05 Age of Facility: 24 years Length of Occupancy: New Tenant 

Major
products manufactured and/or activities conducted on the property: Manufactures and sells stereotactic radiosurgery systems together with related service and parts. 

	 
	 	 
	 	 
	 	 

	Type of Business Activity(ies):

(check all that apply)	 	Hazardous Materials Activities:

(check all that apply)
	         	 	machine shop	 	         	 	degreasing
	         	 	light assembly	 	         	 	chemical/etching/milling
	    x    	 	research and development	 	         	 	wastewater treatment
	    x    	 	product service or repair	 	         	 	painting
	         	 	photo processing	 	         	 	striping
	         	 	automotive service and repair	 	         	 	cleaning
	    x    	 	Manufacturing	 	         	 	printing
	         	 	Warehouse	 	         	 	analytical lab
	         	 	integrated/printed circuit	 	         	 	plating
	         	 	chemical/pharmaceutical product	 	         	 	chemical/missing/synthesis
	 	 	 	 	         	 	silkscreen
	 	 	 	 	         	 	lathe/mill machining
	 	 	 	 	         	 	deionizer water product
	 	 	 	 	         	 	photo masking
	 	 	 	 	         	 	wave solder
	 	 	 	 	         	 	metal finishing

50

 
 
 

HAZARDOUS MATERIALS/WASTE HANDLING AND STORAGE    
    

A.    Are
hazardous materials handled on any of your shipping and receiving docks in container quantities greater than one gallon?
    x      Yes                No 

B.    If
Hazardous materials or waste are stored on the premises, please check off the nature of the storage and type(s) of materials below: 

	 
	 	 
	 	 
	 	 

	Types of Storage Container Stored

(list above-ground storage only)	 	Type of Hazardous Materials and/or Waste
	    x    	 	1 gallon or 3 liter bottles/cans	 	    x    	 	acid
	    x    	 	5 to 30 gallon carboys	 	         	 	phenol
	    x    	 	55 gallon drums	 	         	 	caustic/alkaline cleaner
	         	 	Tanks	 	         	 	cyanide
	 	 	 	 	         	 	photo resist stripper
	 	 	 	 	    x    	 	paint
	 	 	 	 	    x    	 	flammable solvent
	 	 	 	 	         	 	gasoline/diesel fuel
	 	 	 	 	    x    	 	nonflammable/chlorinated solvent
	 	 	 	 	    x    	 	oil/cutting fluid

C.    Do
you accumulate hazardous waste onsite?
    x      Yes                No 

        If
yes, how is it being handled? 

	 
	 	 
	 	 
	 	 

	         	 	on-site treatment or recovery	 	 	 	 
	         	 	discharged to sewer	 	 	 	 
	    x    	 	hauled offsite	 	If hauled offsite, by whom        Romic    
	         	 	Incineration	 	 	 	 

D.    Indicate
your hazardous waste storage status with Department of Health Services 

	 
	 	 
	 	 
	 	 

	    x    	 	Generator	 	 	 	 
	         	 	interim status facility	 	 	 	 
	         	 	permitted TSDF	 	 	 	 
	         	 	none of the above	 	 	 	 

51

 
 
 

WASTEWATER TREATMENT/DISCHARGE    
    

A.    Do
you discharge industrial wastewater to: 

	 
	 	 
	 	 
	 	 

	         	 	Sewer	 	 	 	 
	         	 	storm drain	 	 	 	 
	         	 	surface water	 	 	 	 
	    x    	 	no industrial discharge	 	 	 	 

B.    Is
your industrial wastewater treated before discharge?
            Yes                No    (Not Applicable—No
Industrial Discharge) 

        If
yes, what type of treatment is being conducted? 

	 
	 	 
	 	 
	 	 

	         	 	Neutralization	 	 	 	 
	         	 	metal hydroxide formation	 	 	 	 
	         	 	closed-loop treatment	 	 	 	 
	         	 	cyanide destruct	 	 	 	 
	         	 	HF treatment	 	 	 	 
	         	 	Other	 	 	 	 

 
 

SUBSURFACE OF CONTAINMENT OF HAZARDOUS MATERIALS/WASTES    
    

A.    Are
buried tanks/sumps being used for any of the following: 

        (Not applicable—No
Subsurface Containment of Hazardous Materials/Wastes) 

	 
	 	 
	 	 
	 	 

	         	 	hazardous waste storage	 	 	 	 
	         	 	chemical storage	 	 	 	 
	         	 	gasoline/diesel fuel storage	 	 	 	 
	         	 	waste treatment	 	 	 	 
	         	 	wastewater neutralization	 	 	 	 
	         	 	industrial wastewater treatment	 	 	 	 
	         	 	none of the above	 	 	 	 

B.    If
buried tanks are located onsite, indicate their construction: 

        (Not Applicable—No
Subsurface Containment of Hazardous Materials/Wastes) 

	 
	 	 
	 	 
	 	 
	 	 
	 	 

	         	 	Steel	 	         	 	fiberglass	 	         	 	concrete
	         	 	inside open vault	 	         	 	double walled	 	 	 	 

C.    Are
hazardous materials or untreated industrial wastewater transported via buried piping to tanks, process areas or treatment areas?
            Yes                No 

        (Not Applicable—No
Subsurface Containment of Hazardous Materials/Wastes) 

D.    Do
you have wet floors in your process areas?
            Yes                No 

        (Not Applicable—No
Subsurface Containment of Hazardous Materials/Wastes) 

52

 

        If
yes, name processes:           

E.    Are
abandoned underground tanks or sumps located on the property?
            Yes                No 

        (Not Applicable—No
Subsurface Containment of Hazardous Materials/Wastes) 

 
 

HAZARDOUS MATERIALS SPILLS    
    

A.    Have
hazardous materials ever spilled to: 

	 
	 	 
	 	 
	 	 

	         	 	Sewer	 	 	 	 
	         	 	the storm drain	 	 	 	 
	         	 	onto the property	 	 	 	 
	    x    	 	no spills have occurred	 	 	 	 

B.    Have
you experienced any leaking underground tanks or sumps?
            Yes        x      No (New Tenant) 

C.    If
spills have occurred, were they reported?
            Yes                No 

        Check
which the government agencies that you contacted regarding the spill(s): 

	 
	 	 
	 	 
	 	 

	         	 	Department of Health Services	 	 	 	 
	         	 	Department of Fish and Game	 	 	 	 
	         	 	Environmental Protection Agency	 	 	 	 
	         	 	Regional Water Quality Control Board	 	 	 	 
	         	 	Fire Department	 	 	 	 

D.    Have
you been contacted by a government agency regarding soil or groundwater contamination on your site?
            Yes        X      No 

        Do
you have exploratory wells onsite?
            Yes        x      No 

        If
yes, indicate the following: 

        Number
of wells:               Approximate depth of wells:
              Well diameters:           

        PLEASE
ATTACH ENVIRONMENTAL REGULATORY PERMITS, AGENCY REPORTS THAT APPLY TO YOUR OPERATION AND HAZARDOUS WASTE MANIFESTS. 

        Check
off those enclosed: (Not at this Time. HMIS, HMMP and Hazardous Waste Manifest will soon be available.) 

	 
	 	 
	 	 
	 	 

	         	 	Hazardous Materials Inventory Statement, HMIS
	         	 	Hazardous Materials Management Plan, HMMP
	         	 	Department of Health Services, Generatory Inspection Report
	         	 	Underground Tank Registrations
	         	 	Industrial Wastewater Discharge Permit
	         	 	Hazardous Waste Manifest

53

 
 
 

EXHIBIT E
  
    WORK LETTER AGREEMENT    
    

        This Work Letter Agreement is attached to a Standard Industrial Lease entered into between The Realty Associates Fund III, L.P.
("Landlord"), and Accuray Incorporated ("Tenant")
(the "Lease") covering certain premises (the "Premises") more particularly described in
the Lease, and is incorporated into the Lease by this reference. 

        1.     Tenant Improvements.    For purposes of this Lease, the "Tenant Improvements" shall mean the improvements to the
Premises described on the Final Construction Drawings (as defined below). All Tenant Improvements made to the Premises shall be performed by Tenant. Subject to the reimbursement limitations set
forth in section 2.2 below, the Tenant Improvements shall be paid for from the Tenant Improvement Allowance (as defined below) or shall be paid for by Tenant, at Tenant's sole cost and
expense. The Tenant Improvements to be constructed by Tenant shall include, but shall not be limited to, demolition, concrete work, iron work, rough and finish carpentry, insulation, sheet metal,
glass and glazing, doors, door frames and hardware, dry wall, acoustical ceiling, flooring, painting and wall coverings, accessories and partitions, kitchen equipment, fire extinguishers and cabinets,
window coverings, plumbing, HVAC equipment, relocation of existing and installation of new fire sprinkler heads, electrical, prefabricated partitions, telephone systems, cabling systems, final
clean-up and labor, miscellaneous specialties, planning, engineering, plan checking, permitting, architectural and other design costs, general contractor and subcontractor general
conditions, overhead and profit, moving and insurance costs. Compliance with the Americans with Disabilities Act and all other handicap regulations relating to the construction of the Tenant
Improvements or the use or occupancy of the Premises shall be paid for by Tenant from the Tenant Improvement Allowance or Tenant's own funds. 

        2.     Tenant Improvement Allowance.

        2.1    Tenant Improvement Allowance.    Tenant shall be entitled to a Tenant Improvement Allowance
(the "Tenant Improvement Allowance") in a total amount equal to One Million Dollars ($1,000,000). The Tenant Improvement Allowance shall be used,
subject to the limitations set forth in section 2.2 below, to reimburse Tenant for the costs it incurs relating to the initial design and construction of the Tenant Improvements. In no
event shall Landlord be obligated to make disbursements pursuant to this Work
Letter Agreement in a total amount which exceeds the Tenant Improvement Allowance. Any portion of the Tenant Improvement Allowance not disbursed in accordance with this Work Letter Agreement shall be
retained by Landlord and shall no longer be available to Tenant for any purpose. 

        2.2    Disbursement of the Tenant Improvement Allowance.    

        (a)    Tenant Improvement Allowance Items.    The Tenant Improvement
Allowance shall be disbursed by Landlord only for the following items and costs (collectively the "Tenant Improvement Allowance Items"): 

        (i)    Payment
of the fees of the "Architect" and the "Engineers," as those terms are defined in section 3.1 of this Work Letter Agreement; 

        (ii)   The
payment of plan check, permit and license fees relating to construction of the Tenant Improvements; 

        (iii)  The
cost of the construction of the Tenant Improvements, including without limitation, the cost of constructing four (4) concrete radiation cells; provided,
however, in no event shall the Tenant Improvement Allowance be used to pay the cost of computer or telephone wiring or any cost of purchasing furniture, fixture or equipment (collectively,
"FF&E"), and the cost of all FF&E shall be paid by Tenant, at Tenant's sole expense; 

54

 

        (iv)  The
cost of any changes to the Final Construction Drawings (as that term is defined in section 3.3 of this Work Letter Agreement) or Tenant Improvements
required by any governmental agency; and 

        (v)   Sales
and use taxes and Title 24 fees. 

        (b)    Disbursement.    During the construction of the Tenant Improvements, Landlord shall make disbursements of the
Tenant Improvement Allowance for Tenant Improvement Allowance Items and shall release monies as follows: 

        (i)    Disbursements.    Not more often than once in any thirty (30) day period, Landlord shall disburse to
Tenant, or upon written request from Tenant, Tenant's general contractor, monies from the Tenant Improvement Allowance. Prior to Landlord making a disbursement, Tenant shall deliver to Landlord:
(A) a request for payment, approved by Tenant, in a form which is reasonably acceptable to Landlord which shows the percentage of completion by trade of the Tenant Improvements;
(B) invoices from all of Tenant's Agents (as defined below), for labor rendered and materials delivered with respect to such payment request in an amount not less than the amount of the
Tenant Improvement Allowance Tenant has requested be reimbursed; (C) copies of executed mechanic's lien releases from all of Tenant's Agents which shall comply with the appropriate provisions
of California Civil code Section 3262(d); (D) proof that Tenant has previously paid to Tenant's Agents the monies described in the payment request; and (E) all other information
reasonably requested by Landlord. Within fifteen (15) days after Landlord has received all of this information, Landlord shall deliver a check to Tenant or, at Tenant's request, to Tenant's
general contractor, in an amount equal to the actual monies paid by Tenant to Tenant's Agents with respect to such payment request. Notwithstanding the foregoing, landlord shall not be obligated to
disburse to Tenant the lest ten percent (10%) of the Tenant Improvement Allowance until the requirements of section 2.2(b)(ii) have satisfied and Tenant has received a certificate of occupancy
for the Premises. 

        (ii)   Final Completion.    Within thirty (30) days after the Tenant Improvements have been completed, Tenant
shall deliver to Landlord (A) properly executed mechanics lien releases in compliance with California Civil Code Section 3262(d)(3) or Section 3262(d)(4); and (B) a
certificate from the Architect, in a form reasonably acceptable to Landlord, certifying that the construction of the Tenant Improvements in the Premises has been substantially completed. Within
fifteen (15) days after receiving the foregoing information, Landlord shall reimburse to Tenant any additional costs of constructing the Tenant Improvements to the extent not previously paid
for in accordance with (i) above. 

        3.     Space Plan and Construction Drawings.

        3.1    Space Plan.    Attached hereto as Exhibit 1 is a space plan describing the improvements Tenant will make
to the Premises (the "Space Plan"). The Space Plan provides for the construction of six radiation cells, four of which will be built initially,
and two of which are hereby approved by Landlord, but may be built by Tenant at a later date. 

        3.2    Construction Drawings.    Tenant shall use an architect reasonably acceptable to Landlord to prepare
construction drawings for the improvements described on the Space Plan (the "Architect"). In addition, Tenant shall retain engineering
consultants (the "Engineers") that are reasonably acceptable to Landlord to prepare all plans and engineering drawings relating to the
structural, mechanical, electrical, plumbing, HVAC, life safety, and sprinkler work in the Premises. The plans and specifications to be prepared by Architect and the Engineers hereunder shall reflect
only the improvements described on the final Space Plan and shall be known collectively as the "Construction Drawings." Tenant and Architect shall
verify, in the field, the dimensions of the Premises and the conditions at the Premises, and Tenant and Architect shall be solely responsible for the same, and Landlord shall have no 

55

 

responsibility
in connection therewith. Landlord's review of the Construction Drawings are for its sole benefit and Landlord shall have no liability to Tenant or Tenant's Agents arising out of or
based on Landlord's review. Accordingly, notwithstanding that any Construction Drawings are reviewed by Landlord or its space planner, architect, engineers and consultants, and notwithstanding any
advice or assistance which may be rendered to Tenant or Tenant's Agents by Landlord or Landlord's space planner, architect, engineers and consultants, Landlord shall have no liability whatsoever in
connection therewith and shall not be responsible for any omissions or errors arising therefrom. 

        3.3    Preparation of Final Construction Drawings.    Tenant shall promptly cause the Architect and the Engineers to
complete the Construction Drawings which shall be comprised of a fully coordinated set of architectural, structural, mechanical, electrical and plumbing working drawings in a form which will allow
Tenant to obtain all applicable permits (collectively, the "Final Construction Drawings") and shall submit three (3) copies of the Final
Construction Drawings to Landlord for Landlord's approval, which shall not be unreasonably withheld, conditioned or delayed. Landlord shall advise Tenant within ten (10) business days after
Landlord's receipt of the Final Construction Drawings for the Premises if the same are unsatisfactory or incomplete in any respect. If Tenant is so advised, Tenant shall immediately revise the Final
Construction Drawings to reflect Landlord's comments. 

        3.4    Permits and Changes.    The Final Construction Drawings shall be approved by Landlord commencement of
construction of the Tenant Improvements. After approval by Landlord of the Final Construction Drawings, Tenant may submit the same to the City of Sunnyvale in order to obtain all applicable building
permits. Tenant hereby agrees that neither Landlord nor Landlord's consultants shall be responsible for obtaining any building permits or a certificate of occupancy for the Premises and that obtaining
the same shall be Tenant's sole responsibility; provided, however, that Landlord shall cooperate with Tenant in executing permit applications and performing other ministerial acts reasonably necessary
to enable Tenant to obtain any such permits or certificate of occupancy. No changes, modifications or alterations in the Final Construction Drawings may be made without the prior written consent of
Landlord, which consent shall not be unreasonably withheld or delayed. 

        3.5    Compliance with Laws.    Tenant shall be solely responsible for constructing the Tenant Improvements in
compliance with all laws. Tenant acknowledges and agrees that it may be obligated to modify, alter or upgrade the existing Premises and the systems therein in order to complete the construction of the
Tenant Improvements, and Landlord shall have no liability or responsibility for modifying, altering or upgrading the Premises or its existing systems. 

        4.     Construction of Tenant Improvements.

        4.1    Tenant's Selection of Contractors.    

        (a)    The Contractor.    Tenant shall use a general contractor for the construction of the Tenant Improvements that
is reasonably acceptable to Landlord (the "Contractor"). 

        (b)    Tenant's Agents.    All subcontractors, laborers, materialmen, and suppliers used by Tenant (such
subcontractors, laborers, materialmen, and suppliers, and the Contractor to be known collectively as "Tenant's Agents") must be licensed by the State of
California. All of Tenant's Agents shall be experienced in performing the work they have agreed to perform in similar buildings. 

        4.2    Construction of Tenant Improvements by Tenant's Agents.    

        (a)   Construction Contract; Cost Budget.    Prior to Tenant's execution of the construction contract with Contractor
(the "Contract"), Tenant shall submit the Contract to Landlord for its approval, which approval shall not be unreasonably withheld. Landlord
shall approve or disapprove the Contract within five (5) business days after Landlord receives the Contract. 

        (b)   Tenant's Agents.

56

 

        (i)    Indemnity.    Tenant's indemnification set forth in the Lease shall also apply with respect to any and all
damages, cost, loss or expense (including attorney's fees) related in any way to any act or omission of Tenant or Tenant's Agents, or anyone directly or indirectly employed by any of them, or in
connection with Tenant's non-payment of an amount arising out of the Tenant Improvements. By way of example, and not limitation, Tenant shall indemnify and defend Landlord from any Damages
to the Premises caused by the actions of the persons constructing the Tenant Improvements. 

        (ii)   Warranty.    Each of Tenant's Agents shall guarantee to Tenant and for the benefit of Landlord that the
portion of the Tenant Improvements for which it is responsible shall be free from any defects in workmanship and materials for a period of not less than one (1) year from the Commencement Date
of the Lease. The correction of any defective work shall include, without additional charge, all additional
expenses and damages incurred in connection with the removal or replacement of all or any part of the Tenant Improvements, and/or any other Building Improvements that may be damaged or disturbed
thereby. All such warranties or guarantees shall be contained in the Contract or applicable subcontract and shall inure to the benefit of both Landlord and Tenant. Tenant covenants to give to Landlord
any assignment or other assurances which may be necessary to effect such right of direct enforcement. 

        (iii)  Insurance Requirements.  

         (A)  General Coverages.    All of Tenant's Agents shall carry worker's compensation
insurance covering all of their respective employees, and shall also carry public liability insurance, including property damage, all with limits, in form and with companies as are required to be
carried by Tenant pursuant to section 10 of the Lease. Tenant's Agents shall not be entitled to satisfy their insurance obligations through self-insurance. 

        (B)  Special Coverages.    Tenant shall carry "Builder's All Risk" insurance in an amount approved by Landlord
covering the construction of the Tenant Improvements, and such other insurance as Landlord may reasonably require, it being understood and agreed that the Tenant Improvements shall be insured by
Tenant during the construction period and throughout the term of the Lease. Such insurance shall be in amounts and shall include such extended coverage endorsements as may be reasonably required
by Landlord. 

        (C)  General Terms.    Certificates for all insurance carried pursuant to this section shall be delivered to
Landlord before the commencement of construction of the Tenant Improvements and before any equipment is moved onto the site. All such policies of insurance shall name Landlord as an additional insured
and must contain a provision that the company writing the policy will give Landlord thirty (30) days prior written notice of any cancellation or lapse of the effective date or any reduction in
the amounts of such insurance. In the event that the Tenant Improvements are damaged by any cause during the course of the construction thereof, Tenant shall immediately repair the same at Tenant's
sole cost and expense. Tenant's Agents shall maintain all of the foregoing insurance coverage in force until all of the Tenant Improvements are fully completed. All insurance, except Worker's
Compensation, maintained by Tenant's Agents shall preclude subrogation claims by the insurer against Landlord or Tenant. Such insurance shall provide that it is primary insurance as respects Landlord
and that any other insurance maintained by Landlord is excess and noncontributing with the insurance required hereunder. The requirements for the foregoing insurance shall not limit Tenant's
indemnification obligations under this Work Letter Agreement. 

57

 

        (c)   Compliance With Laws and Other Landlord Requirements.    The Tenant Improvements shall comply in all respects
with the following: (i) all applicable building codes, laws and regulations; (ii) applicable standards of the American Insurance Association (formerly, the National Board of Fire
Underwriters);
and (iii) building material manufacturer's specifications. In addition, Tenant's Agents shall comply with all of Landlord's reasonable rules, regulations and procedures concerning the
construction of Improvements in the Building and access to the Building (collectively, the "Construction Procedures"). 

        (d)   Inspection by Landlord.    Landlord shall have the right to inspect the Tenant Improvements at all times,
provided however, that Landlord's Inspection of the Tenant Improvements shall not constitute Landlord's approval of the Tenant improvements. Should Landlord reasonably disapprove any portion of the
Tenant Improvements, Landlord shall notify Tenant in writing of such disapproval and shall specify the items disapproved. Any defects in the Tenant Improvements shall be rectified by Tenant at no
expense to Landlord. Landlord shall not receive a separate fee for monitoring the construction of the Tenant Improvements. 

        (e)   Notice of Non-Responsibility.    Not less than ten (10) days prior to the date Tenant
intends to first commence construction of the Tenant improvements, Tenant shall provide Landlord with written notice of its intention to commence construction. Landlord shall have the right from time
to time to post notices of non-responsibility at the Premises. 

        4.3    Notice of Completion; Copy of Record Set of Plans.    Within
ten (10) days after completion of construction of the Tenant Improvements, and as a condition to Landlord's final reimbursement of the Tenant Improvement Allowance, Tenant shall cause a Notice
of Completion to be recorded in the office of the Recorder of Santa Clara County in accordance with Section 3093 of the Civil Code of the State of California or any successor statute, and shall
furnish a copy thereof to Landlord upon such recordation. If Tenant fails to do so, Landlord may execute and file the same on behalf of Tenant as Tenant's agent for such purpose, at Tenant's sole cost
and expense. At the conclusion of construction, and as a condition to Landlord's final reimbursement of the Tenant Improvement Allowance, (a) Tenant shall cause the Architect and Contractor
(i) to update the Construction Drawings as necessary to reflect all changes made to the Final Construction Drawings during the course of construction, (ii) to certify to the best of
their knowledge that the "record-set" of as-built drawings are true and correct and (iii) to deliver to Landlord two (2) sets of copies of such record set of
drawings, and (b) Tenant shall deliver to Landlord a copy of all warranties, guaranties, and operating manuals and information relating to the improvements, equipment, and systems in
the Premises. 

        5.     Completion.    Tenant hereby covenants and agrees to cause the Tenant Improvements to be completed as soon as
reasonably possible following the Commencement Date. Subject to the performance by Landlord of its obligations with respect to the funding of the Tenant Improvement Allowance, Tenant agrees to cause
the Tenant Improvements to be paid for, at Tenant's sole cost end expense. Tenant shall be primarily obligated to complete the construction of the Tenant Improvements, and the failure of Tenant's
Agents to perform their obligations with respect to the construction of the Tenant Improvements shall not relieve Tenant of its obligation to complete the construction of the Tenant Improvements.
Tenant acknowledges and agrees that its obligation to pay Base Rent and other amounts due under the Lease as of the Rent Commencement Date is not conditioned on Tenant's completion of the Tenant
Improvements prior to the Rent Commencement Date or at any other time. 

        6.     Miscellaneous.

        6.1    Tenant's Representative.    Tenant has designated Chris Rearms as its sole representative with respect to the
matters set forth in this Work Letter Agreement, and, until further notice to Landlord, Tenant's representative shall have full authority and responsibility to act on behalf of the Tenant as required
in this Work Letter Agreement. 

58

 

        6.2    Landlord's Representative.    Landlord has designated Kevin Morris as its sole representative with respect to
the matters set forth in this Work Letter Agreement, and until further notice to Tenant, Landlords, representative shall have full authority and responsibility to act on behalf of the Landlord as
required in this Work Letter Agreement. 

        6.3    Time of the Essence.    Unless otherwise indicated, all references herein to a "number of days" shall mean and
refer to calendar days. If any item requiring approval is timely disapproved by Landlord, the procedure for preparation of the document and approval thereof shall be repeated until the document is
approved by Landlord. 

        6.4    Tenant's Default.    Notwithstanding any provision to the contrary contained in the Lease, if Tenant commits a
default as defined in section 17.1 of the Lease, and fails to cure such default during any applicable cure period, then, in addition to all other rights and remedies granted to Landlord
pursuant to the Lease, Landlord shall have the right to withhold payment of all or any portion of the Tenant Improvement Allowance until such default is cured. The failure of Tenant or Landlord to
perform any of Its obligations under this Work Letter Agreement shall constitute a default under the Lease, subject to the applicable cure periods set forth therein. 

59

 
 
 

Exhibit 1 to Work Letter Agreement
  
    (Space Plan)    
    

        [GRAPHIC OMITTED] 

60

 
 
 

EXHIBIT F    
    

Addendum to Standard Industrial Lease (the "Lease")

dated the 30th day of June, 2005, Between

The Realty Associates Fund III, L.P. ("Landlord") and

Accuray Incorporated ("Tenant")  

        It is hereby agreed by Landlord and Tenant that the provisions of this Addendum are a part of the Lease. If there is a conflict between the terms and conditions
of this Addendum and the terms and conditions of the Lease, the terms and conditions of this Addendum shall control. Capitalized terms in this Addendum shall have the same meaning as capitalized terms
in the Lease, and, if a Work Letter Agreement is attached to this Lease, as those terms have been defined in the Work Letter Agreement. 

        1.     Option to Extend.    Landlord hereby grants to Tenant the option to extend the term of the Lease for one
(1) four (4)-year period (the "Extension Option") commencing when the initial lease term expires upon each and all of the following terms and conditions: 

        (a)   On
a date which is prior to the date that the option period would commence (if exercised) by at least two hundred seventy (270) days and not more than
three hundred sixty (360) days, Landlord shall have received from Tenant a written notice of the exercise of the option to extend the Lease for said additional term
(an "Exercise Notice"), time being of the essence. If the Exercise Notice is not so given and received, the Extension Option shall automatically
expire, Tenant shall no longer have the right to give an Extension Notice and this section shall be of no further force or effect. Tenant shall give the Exercise Notice using certified mail return
receipt requested or some other method where the person delivering the package containing the Exercise Notice obtains a signature of the person accepting the package containing the Exercise Notice
(e.g., by Fed Ex with the requirement that the FedEx delivery person obtain a signature from the person accepting the package). 

        (b)   All
of the terms and conditions of the Lease except where specifically modified by this section shall apply. 

        (c)   The
monthly Base Rent payable during the option term shall be the Market Rate on the date the option term commences. 

        (d)   The
term "Market Rate" shall mean the annual amount per rentable square foot that a willing, comparable renewal tenant would pay and a willing, comparable
landlord of a similar building would accept at arm's length for similar space, giving appropriate consideration to the following matters: (i) annual rental rates per rentable
square foot; (ii) the type of escalation clauses (including, but without limitation, operating expense, real estate taxes, and CPI) and the extent of liability under the escalation
clauses (i.e., whether determined on a "net lease" basis or by increases over a particular base year or base dollar amount); (iii) rent abatement
provisions reflecting free rent and/or no rent during the lease term; (iv) length of lease term: (v) size and location of premises being leased; and (vi) other generally
applicable terms and conditions of tenancy for similar space; provided, however, Tenant shall not be entitled to any tenant improvement or refurbishment allowance. Tenant shall not be entitled to any
tenant improvement or refurbishment allowance, but such fact shall be take into account in determining the Market Rate, the existence of any specialized improvements paid for by Tenant (including,
without limitation, clean rooms) shall not be taken into consideration. The Market Rate may also designate periodic rental increases, a new Base Year and similar economic adjustments. 

        (e)   If
Tenant exercises the Extension Option, Landlord shall determine the Market Rate by using the good faith judgment. Landlord shall provide Tenant with written notice of
such amount on or before the date that is ninety (90) days prior to the date that the term of the Extension Option will commence. Tenant shall have fifteen (15) days
("Tenant's Review Period") after receipt 

61

 

of
Landlord's notice of the new rental within which to accept such rental. In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected,
and Landlord and Tenant shall attempt to agree upon such Market Rate, using their best good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (15) days following
Tenant's Review Period ("Outside Agreement Date"), then each party shall place in a separate sealed envelope their final proposal as to the Market Rate,
and such determination shall be submitted to arbitration in accordance with subsections (i) through (v) below. 

        (i)    Landlord
and Tenant shall meet with each other within five (5) business days after the Outside Agreement Date and exchange their sealed envelopes and then open
such envelopes in each other's presence. If Landlord and Tenant do not mutually agree upon the Market Rate within one (1) business day of the exchange and opening of envelopes, then, within ten
(10) business days of the exchange and opening of envelopes, Landlord and Tenant shall agree upon and jointly appoint a single arbitrator who shall by profession be a real estate broker or
agent who shall have been active over the five (5) year period ending on the date of such appointment in the leasing of buildings similar to the Premises in the geographical area of the
Premises. Neither Landlord nor Tenant shall consult with such broker or agent as to his or her opinion as to the Market Rate prior to the appointment. The determination of the arbitrator shall be
limited solely to the issue of whether Landlord's or Tenant's submitted Market Rate for the Premises is the closest to the actual Market Rate for the Premises as determined by the arbitrator, taking
into account the requirements for determining Market Rate set forth herein. Such arbitrator may hold such hearings and require such briefs as the arbitrator, in his or her sole discretion,
determines is necessary. In addition, Landlord or Tenant may submit to the arbitrator with a copy to the other party within five (5) business days after the appointment of the arbitrator any
market data and additional information such party deems relevant to the determination of the Market Rate ("MR Data"), and the other party may submit a
reply in writing within five (5) business days after receipt of such MR Data. 

        (ii)   The
arbitrator shall, within thirty (30) days of his or her appointment, reach a decision as to whether the parties shall use Landlord's or Tenant's submitted
Market Rate and shall notify Landlord and Tenant of such determination. 

        (iii)  The
decision of the arbitrator shall be final and binding upon Landlord and Tenant. 

        (iv)  If
Landlord and Tenant fail to agree upon and appoint an arbitrator, then the appointment of the arbitrator shall be made by the presiding judge of the Superior Court
for the county in which the Premises is located, or, if he or she refuses to act, by any judge having jurisdiction over the parties. 

        (v)   The
cost of the arbitration shall be paid by Landlord and Tenant equally. 

        2.     Building Signage.    Subject to the following terms and conditions, Landlord shall permit Tenant to install, at
Tenant's sole cost and expense, a building sign (the "Building Sign") containing Tenant's name above the entrance to the Building: 

        (a)   The
size, location, color and design of the Building Sign shall be approved by Landlord, in Landlord's reasonable discretion; 

        (b)   The
cost of designing, fabricating, installing and obtaining governmental approvals for the Building Sign shall be paid by Tenant, at Tenant's sole cost and expense.
Landlord shall have the right to approve the contractor that installs the Building Sign and the contractor shall comply with all of Landlord's policies and procedures relating to construction
performed at the Building (e.g., insurance, safety etc.); 

62

 

        (c)   Tenant
shall maintain the Building Sign in good order and repair, at Tenant's sole cost and expense; 

        (d)   Tenant's
right to install the Building Sign is subject to the insurance by the City of Sunnyvale (the "City") of
any required approvals and permits for the installation of the Building Sign, and Landlord shall cooperate with Tenant in obtaining such approvals, at no material cost or expense to Landlord. Landlord
makes no representation or warranty that the City will permit the installation of the Building Sign, and Tenant's obligations under this Lease are not conditioned upon the City permitting the
installation of the Building Sign or any other sign; 

        (e)   Any
modification of the Building Sign shall be considered to be an "Alteration" within the meaning of section 13.1 of the Lease, and shall be governed by the
provisions thereof; 

        (f)    Tenant
shall remove the Building Sign and repair any damage to the Building, at Tenant's sole cost and expense, upon the termination or expiration of the
Lease term; 

        (g)   Subject
to Landlord's right to place signs on the exterior of the Building to comply with applicable laws, Tenant shall have the exclusive right to place exterior
building signage on the Building; and 

        (h)   If
Tenant assigns the Lease or subleases the entire Premises, Landlord shall not unreasonably withhold its consent to the modification of the Building Sign to state the
name of the person or entity to whom the Lease is assigned or to whom the Premises is subleased provided that the assignee or subtenant obtains from the City all required approvals and permits. 

        3.     Monument Sign.    Tenant shall have the non-exclusive right to place its name in the lower position
on the monument sign located on the corner of Orleans Drive and Moffett Park Drive (the "Monument Sign"). Ion America Corporation has the right
to the top position on the Monument Sign. Landlord shall have the right to approve the size, design, location and color of Tenant's name on the Monument Sign, in Landlord's reasonable discretion.
Tenant shall maintain its name in good condition. The Monument Sign will include spaces for the names of multiple tenants, and Tenant acknowledges that Landlord may elect to add additional names to
the Monument Sign. If Tenant assigns the Lease or subleases the entire Premises, Landlord shall not unreasonably withhold its consent to the modification of the Monument Sign to state the name of the
person or entity to whom the Lease is assigned or to whom the Premises is subleased provided that the assignee or subtenant obtains from the City all required approvals and permits. 

        4.     Confidentiality.    Landlord acknowledges the confidential nature of the work to be performed by Tenant within
the Premises and agrees that it shall use commercially reasonable efforts to keep confidential all confidential information observed or obtained by Landlord regarding any products and other
information of or relating to Tenant's business, except to the extent such information is required to be disclosed to a third party by law, which obligation shall survive expiration or sooner
termination of this Lease. 

63

 

        IN
WITNESS WHEREOF, the parties hereto have respectively executed this Addendum. 

LANDLORD: 

The
Realty Associates Fund III, L.P., a Delaware limited partnership 

By:    Realty
Associates Fund III GP Limited Partnership, a Delaware limited partnership, its general partner 

By:    Realty
Associates Fund III LLC, a Delaware limited liability company, its sole general partner 

By:    Realty
Associates Fund III Trust, a Massachusetts business trust, sole Member 

	
 	
 	

By:	

/s/  SCOTT W. AMLING      
 (Officer)    Scott W. Amling

                Regional Director

By:    Realty
Associates Fund III Texas Corporation, a Texas corporation, general partner 

	
 	
 	

By:	

/s/  SCOTT W. AMLING      
 (Officer)    Scott W. Amling

                Regional Director

TENANT:

Accuray
Incorporated, a California corporation

	
 	
 	

By:	

/s/  CHRIS A. RAANES      
Chris A. Raanes
 (print name)
	
 	
 	

Its:	

Chief Operating Officer
 (print name)
	
 	
 	

By:	

/s/  ROBERT E. MCNAMARA      
 Robert E. McNamara

(print name)
	
 	
 	

Its:	

Chief Financial Officer
 (print name)

64

QuickLinks

STANDARD INDUSTRIAL LEASE (Multiple Tenant—Tenant Pays its Percentage Share of Operating Expenses, Real Property Taxes and Insurance Costs—NO Base Year)

EXHIBIT A PREMISES

EXHIBIT A

EXHIBIT B

EXHIBIT C RULES AND REGULATIONS GENERAL RULES

PARKING RULES

EXHIBIT D Form of HazMat Certificate General Information

HAZARDOUS MATERIALS/WASTE HANDLING AND STORAGE

WASTEWATER TREATMENT/DISCHARGE

SUBSURFACE OF CONTAINMENT OF HAZARDOUS MATERIALS/WASTES

HAZARDOUS MATERIALS SPILLS

EXHIBIT E WORK LETTER AGREEMENT

Exhibit 1 to Work Letter Agreement (Space Plan)

EXHIBIT F

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]