Document:

Form of Employee Restricted Stock Issuance Agreement

 EXHIBIT 10.8 
  
 DAYSTAR TECHNOLOGIES INC. 
 EQUITY INCENTIVE PLAN 
  
 RESTRICTED STOCK ISSUANCE AGREEMENT 
  
 AGREEMENT
made as of this              day of             , 20
             between DayStar Technologies, Inc., a Delaware corporation (the “Company”), and
            , (the “Participant”) under the Company’s Equity Incentive Plan. 
  

SECTION 1. ACQUISITION OF SHARES. 
  
 (a) Transfer. On the terms and conditions set forth in this Agreement, the Company agrees to transfer to the Participant
             shares of Common Stock of the Company (the “Shares”). The fair market value per Share is agreed to be
$            . The transfer shall occur at the offices of the Company on the date set forth above or at such other place and time as the parties may agree. 
  
 (b) Stock Plan and Defined Terms. The transfer of the Shares is
subject to the Plan, a copy of which the Participant acknowledges having received. The provisions of the Plan are incorporated into this Agreement by this reference. Capitalized terms not elsewhere defined are defined in Section 12 of this
Agreement. 
  
 (c) Withholding Taxes. In the event that the
Company determines that it is required to withhold any tax as a result of the issuance of Shares pursuant to this Agreement, the Participant, as a condition to the receipt of such Shares, shall make arrangements satisfactory to the Company to enable
it to satisfy all withholding requirements. 
  
 SECTION 2. RIGHT OF REPURCHASE.

  
 (a) Scope of Repurchase Right. As described in
Section 2(c) below, a portion of the Shares initially shall be Restricted Shares and shall be subject to a right (but not an obligation) of repurchase by the Company. The Participant shall not transfer, assign, encumber or otherwise dispose of any
Restricted Shares, except as provided in the following sentence. The Participant may transfer Restricted Shares (i) by beneficiary designation, will or intestate succession or (ii) to the Participant’s spouse, children or grandchildren or to a
trust established by the Participant for the benefit of the Participant or the Participant’s spouse, children or grandchildren, provided in either case that the Transferee agrees in writing on a form prescribed by the Company to be bound by all
provisions of this Agreement. If the Participant transfers any Restricted Share, then this Section 2 shall apply to the Transferee to the same extent as to the Participant. 
  
 (b) Condition Precedent to Exercise. The Right of Repurchase shall be exercisable only during the 90-day period next
following the date when the Participant’s Service terminates for any reason, with or without cause, including (without limitation) death or disability. 
  

 Restricted Stock Issuance Agreement 
 Page 1 

 (c) Lapse of Repurchase Right. The Right of Repurchase shall lapse with respect to
             shares on             , provided the Participant remains in Service with the Company until such date.
In addition, the Right of Repurchase shall lapse and all of the remaining Restricted Shares shall become vested if the Company is subject to a Change in Control before the Participant’s employment terminates and the Right of Repurchase is not
assigned to the entity that employs the Participant immediately after the Change in Control or to its parent or subsidiary. 
  
 (d) Repurchase Cost. Pursuant to the terms of the Plan, if the Company exercises the Right of Repurchase, it shall pay the Participant an amount
equal to the Purchase Price, if any, for each of the Restricted Shares being repurchased. [The Shares subject to this Agreement are being issued in consideration of services rendered to the Company. Therefore, Purchase Price is equal to the par
value per share ($0.01) paid for the Shares.] 
  
 (e) Exercise
of Repurchase Right. The Right of Repurchase shall be exercisable only by written notice delivered to the Participant prior to the expiration of the 90-day period specified in Subsection (b) above. The notice shall set forth the date on which
the repurchase is to be effected. Such date shall not be more than 90 days after the date of the notice. The certificate(s) representing the Restricted Shares to be repurchased shall, prior to the close of business on the date specified for the
repurchase, be delivered to the Company properly endorsed for transfer. The Company shall, concurrently with the receipt of such certificate(s), pay to the Participant the Purchase Price determined according to Subsection (d) above. Payment shall be
made in cash or cash equivalents or by canceling indebtedness to the Company incurred by the Participant in the purchase of any Restricted Shares. The Right of Repurchase shall terminate with respect to any Restricted Shares for which it has not
been timely exercised pursuant to this Subsection (e). 
  
 (f)
Additional Shares or Substituted Securities. In the event of the declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization or a similarly transaction affecting the Company’s
outstanding securities without receipt of consideration, any new, substituted or additional securities or other property which are by reason of such transaction distributed with respect to any Restricted Share or into which such Restricted Shares
thereby become convertible shall immediately be subject to the Right of Repurchase. Appropriate adjustments to reflect the distribution of such securities or property shall be made to the number and/or class of the Restricted Shares. Appropriate
adjustments shall also, after each such transaction, be made to the price per share to be paid upon the exercise of the Right of Repurchase in order to reflect any change in the Company’s outstanding securities effected without receipt of
consideration therefor; provided, however, that the aggregate Purchase Price payable for the Restricted Shares shall remain the same. 
  
 (g) Termination of Rights as Stockholder. If the Company makes available, at the time and place and in the amount and form provided in this
Agreement, the consideration for the Restricted Shares to be repurchased in accordance with this Section 2, then after such time the person from whom such Restricted Shares are to be repurchased shall no longer have any rights as a holder of such
Restricted Shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such Restricted Shares shall be deemed to 
  

 Restricted Stock Issuance Agreement 
 Page 2 

 have been repurchased in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor
have been delivered as required by this Agreement. 
  
 (h)
Escrow. Upon issuance, the certificates for Restricted Shares shall be deposited in escrow with the Company to be held in accordance with the provisions of this Agreement. Any new, substituted or additional securities or other property
described in Subsection 2(f) above shall immediately be delivered to the Company to be held in escrow, but only to the extent the Shares are at the time Restricted Share. All regular cash dividends on Restricted Shares (or other securities at the
time held in escrow) shall be paid directly to the Participant and shall not be held in Escrow. Restricted Shares, together with any other assets or securities held in escrow hereunder, shall be (i) surrendered to the Company for repurchase and
cancellation upon the Company’s exercise of its Right of Repurchase or Right of First Refusal or (ii) released to the Participant upon the Participant’s request to the extent the Shares are no longer Restricted Shares (but not more
frequently than once every six months). In any event, all Shares which have vested (and any other vested assets and securities attributable thereto) shall be released within 90 days after the earlier of (i) the Participant’s cessation of
Service or (ii) the lapse of the Right of First Refusal. 
  
 SECTION 3. RIGHT
OF FIRST REFUSAL. 
  
 (a) Right of First Refusal. In
the event that the Participant proposes to sell, pledge or otherwise transfer to a third party any Shares, or any interest in such Shares, the Company shall have the Right of First Refusal with respect to all (and not less than all) of such Shares.
If the Participant desires to transfer Shares, the Participant shall give a written Transfer Notice to the Company describing fully the proposed transfer, including the number of Shares proposed to be transferred, the proposed transfer price, the
name and address of the proposed Transferee and proof satisfactory to the Company that the proposed sale or transfer will not violate any applicable federal or state securities laws. The Transfer Notice shall be signed both by the Participant and by
the proposed Transferee and must constitute a binding commitment of both parties to the transfer of the Shares. The Company shall have the right to purchase all, and not less than all, of the Shares on the terms of the proposal described in the
Transfer Notice (subject, however, to any change in such terms permitted under Subsection (b) below) by delivery of a notice of exercise of the Right of First Refusal within 90 days after the date when the Transfer Notice was received by the
Company. The Company’s rights under this Subsection (a) shall be freely assignable, in whole or in part. 
  
 (b) Transfer of Shares. If the Company fails to exercise its Right of First Refusal within 90 days after the date when it received the Transfer
Notice the Participant may, not later than 90 days following receipt of the Transfer Notice by the Company, conclude a transfer of the Shares subject to the Transfer Notice on the terms and conditions described in the Transfer Notice, provided that
any such sale is made in compliance with applicable federal and state securities laws and not in violation of any other contractual restrictions to which the Participant is bound. Any proposed transfer on terms and conditions different from those
described in the Transfer Notice, as well as any subsequent proposed transfer by the Participant, shall again be subject to the Right of First Refusal and shall require compliance with the procedure described in Subsection (a) above. If the Company
exercises its Right of First Refusal, the parties shall 
  

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 Page 3 

 consummate the sale of the Shares on the terms set forth in the Transfer Notice within 90 days after the date when the
Company received the Transfer Notice (or within such longer period as may have been specified in the Transfer Notice); provided, however, that in the event the Transfer Notice provided that payment for the Shares was to be made in a form other than
cash or cash equivalents paid at the time of transfer, the Company shall have the option of paying for the Shares with cash or cash equivalents equal to the present value of the consideration described in the Transfer Notice. 
  
 (c) Additional Shares or Substituted Securities. In the event of a
declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities without receipt of consideration, any new, substituted or
additional securities or other property which are by reason of such transaction distributed with respect to any Shares subject to this Section 3 or into which such Shares thereby become convertible shall immediately be subject to this Section 3.
Appropriate adjustments to reflect the distribution of such securities or property shall be made to the number and/or class of Shares subject to this Section 3. 
  

(d) Termination of Right of First Refusal. Any other provision of this Section 3 notwithstanding, in the event that the Stock is readily
tradable on an established securities market when the Participant desires to transfer Shares, the Company shall have no Right of First Refusal, and the Participant shall have no obligation to comply with the procedures prescribed by Subsections (a)
and (b) above. 
  
 (e) Permitted Transfers. This Section 3
shall not apply to (i) a transfer by beneficiary designation, will or intestate succession or (ii) a transfer to the Participant’s spouse, children or grandchildren or to a trust established by the Participant for the benefit of the Participant
or the Participant’s spouse, children or grandchildren, provided in either case that the Transferee agrees in writing on a form prescribed by the Company to be bound by all provisions of this Agreement. If the Participant transfers any Shares,
either under this Subsection (e) or after the Company has failed to exercise the Right of First Refusal, then this Section 3 shall apply to the Transferee to the same extent as to the Participant. 
  
 (f) Termination of Rights as Stockholder. If the Company makes
available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Shares to be purchased in accordance with this Section 3, then after such time the person from whom such Shares are to be purchased
shall no longer have any rights as a holder of such Shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such Shares shall be deemed to have been purchased in accordance with the applicable
provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Agreement. 
  

 Restricted Stock Issuance Agreement 
 Page 4 

 SECTION 4. OTHER RESTRICTIONS ON TRANSFER. 
  
 (a) Participant Representations. In connection with the issuance and acquisition of Shares under this Agreement, the
Participant hereby represents and warrants to the Company as follows: 
  
 (i) The Participant is acquiring and will hold the Shares for investment for his or her account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of
the Securities Act. 
  
 (ii) The Participant
understands that the Shares have not been registered under the Securities Act by reason of a specific exemption therefrom and that the Shares must be held indefinitely, unless they are subsequently registered under the Securities Act or the
Participant obtains an opinion of counsel, in form and substance satisfactory to the Company and its counsel, that such registration is not required. The Participant further acknowledges and understands that the Company is under no obligation to
register the Shares. 
  
 (iii) The Participant is
aware of the adoption of Rule 144 by the Securities and Exchange Commission under the Securities Act, which permits limited public resales of securities acquired in a non-public offering, subject to the satisfaction of certain conditions, including
(without limitation) the availability of certain current public information about the issuer, the resale occurring only after the holding period required by Rule 144 has been satisfied, the sale occurring through an unsolicited “broker’s
transaction,” and the amount of securities being sold during any three-month period not exceeding specified limitations. The Participant acknowledges and understands that the conditions for resale set forth in Rule 144 have not been satisfied
and that the Company has no plans to satisfy these conditions in the foreseeable future. 
  
 (iv) The Participant will not sell, transfer or otherwise dispose of the Shares in violation of the Securities Act, the Securities
Exchange Act of 1934, or the rules promulgated thereunder, including Rule 144 under the Securities Act. The Participant agrees that he or she will not dispose of the Shares unless and until he or she has complied with all requirements of this
Agreement applicable to the disposition of Shares and he or she has provided the Company with written assurances, in substance and form satisfactory to the Company, that the proposed disposition does not require registration of the Shares under the
Securities Act or all appropriate action necessary for compliance with the registration requirements of the Securities Act or with any exemption from registration available under the Securities Act (including Rule 144) has been taken. 
  
 (v) The Participant has been furnished with, and has had
access to, such information as he or she considers necessary or appropriate for deciding whether to invest in the Shares, and the Participant has had an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the issuance of the Shares. 
  
 (vi) The Participant is aware that his or her investment in the Company is a speculative investment which has limited liquidity and is subject to the risk of complete 
  

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 loss. The Participant is able, without impairing his or her financial condition, to hold the Shares for
an indefinite period and to suffer a complete loss of his or her investment in the Shares. 
  
 (b) Securities Law Restrictions. Regardless of whether the offering and sale of Shares under the Plan have been registered under the Securities Act or have been registered or qualified under the securities laws
of any state, the Company at its discretion may impose restrictions upon the sale, pledge or other transfer of the Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in
the judgment of the Company, such restrictions are necessary or desirable in order to achieve compliance with the Securities Act, the securities laws of any state or any other law. 
  
 (c) Market Stand-Off. In connection with any underwritten public offering by the Company of its equity securities
pursuant to an effective registration statement filed under the Securities Act, including the Company’s initial public offering, the Participant shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer,
grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any Shares without
the prior written consent of the Company or its underwriters. Such restriction (the “Market Stand-Off”) shall be in effect for such period of time following the date of the final prospectus for the offering as may be requested by the
Company or such underwriters. In the event of the declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities without
receipt of consideration, any new, substituted or additional securities which are by reason of such transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares thereby become convertible, shall
immediately be subject to the Market Stand-Off. In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Shares until the end of the applicable stand-off period. The Company’s underwriters
shall be beneficiaries of the agreement set forth in this Subsection (c). This Subsection (c) shall not apply to Shares registered in the public offering under the Securities Act. 
  
 (d) Rights of the Company. The Company shall not be required to (i) transfer on its books any Shares that have been
sold or transferred in contravention of this Agreement or (ii) treat as the owner of Shares, or otherwise to accord voting, dividend or liquidation rights to, any transferee to whom Shares have been transferred in contravention of this Agreement.

  
 SECTION 5. SUCCESSORS AND ASSIGNS. 
  
 Except as otherwise expressly provided to the contrary, the provisions of
this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and be binding upon the Participant and the Participant’s legal representatives, heirs, legatees, distributees, assigns and
transferees by operation of law, whether or not any such person has become a party to this Agreement or has agreed in writing to join herein and to be bound by the terms, conditions and restrictions hereof. 
  

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 Page 6 

 SECTION 6. NO RETENTION RIGHTS. 
  
 Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continue in Service for any period
of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to
terminate his or her Service at any time and for any reason, with or without cause. 
  
 SECTION 7. TAX ELECTION. 
  
 The acquisition of
the Shares may result in adverse tax consequences that may be avoided or mitigated by filing an election under Code Section 83(b). Such election may be filed only within 30 days after the date of purchase. The form for making the Code Section 83(b)
election is attached to this Agreement as an Exhibit. The Participant should consult with his or her tax advisor to determine the tax consequences of acquiring the Shares and the advantages and disadvantages of filing the Code Section 83(b)
election. The Participant acknowledges that it is his or her sole responsibility, and not the Company’s, to file a timely election under Code Section 83(b), even if the Participant requests the Company or its representatives to make this filing
on his or her behalf. 
  
 SECTION 8. LEGENDS. 
  
 All certificates evidencing Shares shall bear the following legends:

  
 “THE SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED,
TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE
COMPANY CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES AND CERTAIN REPURCHASE RIGHTS UPON TERMINATION OF SERVICE WITH THE COMPANY. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO
THE HOLDER HEREOF WITHOUT CHARGE.” 
  
 “THE SHARES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE
COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.” 
  
 If
required by the authorities of any state in connection with the issuance of the Shares, the legend or legends required by such state authorities shall also be endorsed on all such certificates. 
  

 Restricted Stock Issuance Agreement 
 Page 7 

 SECTION 9. NOTICE. 
  
 Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the
United States Postal Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed to the Company at its principal executive office and to the Participant at the address that he or she most recently provided to
the Company. 
  
 SECTION 10. ENTIRE AGREEMENT. 
  
 This Agreement and the Plan constitute the entire contract between the
parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof. 
  
 SECTION 11. CHOICE OF LAW. 
  
 This Agreement shall be governed by, and construed in accordance with, the
laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State. 
  
 SECTION 12. DEFINITIONS. 
  
 Capitalized terms not otherwise defined herein shall have the meanings as defined in the Plan. 
  
 (a) “Agreement” shall mean this Restricted Stock Issuance Agreement. 
  
 (b) “Purchase Price” shall mean the aggregate purchase price paid for the Shares. 
  
 (c) “Participant” shall mean the individual named in the
first paragraph of this Agreement. 
  
 (d) “Restricted
Share” shall mean a Share awarded under the Plan that is subject to the Right of Repurchase. 
  
 (e) “Right of First Refusal” shall mean the Company’s right of first refusal described in Section 3. 
  
 (f) “Right of Repurchase” shall mean the Company’s
right of repurchase described in Section 2. 
  
 (g)
“Securities Act” shall mean the Securities Act of 1933, as amended. 
  

 Restricted Stock Issuance Agreement 
 Page 8 

 (h) “Shares” shall mean the shares of common stock of the Company acquired by the
Participant pursuant to this Agreement, as adjusted in accordance with Section 8 of the Plan (if applicable). 
  
 (i) “Stock” shall mean the common stock of the Company. 
  
 (j) “Transferee” shall mean any person to whom the Participant has directly or indirectly transferred any
Share. 
  
 (k) “Transfer Notice” shall mean the
notice of a proposed transfer of Shares described in Section 3. 
  
 SECTION 13
EXECUTION. 
  
 The parties have executed this Agreement as of
the date first written above. 
  
 COMPANY: 
  

	
	 
	

	 John R. Tuttle, President, Chairman

	 and Chief Executive Officer

  
 PARTICIPANT: 
  

	
	 
	

  

 Restricted Stock Issuance Agreement 
 Page 9 

 SECTION 83(b) ELECTION 
  
 This statement is made under Section 83(b) of the Internal Revenue Code of 1986, as amended, pursuant to Treasury Regulations Section
1.83-2. 
  

	(1)	The taxpayer who performed the services is: 

  
 Name:                                     
                                        
                                        
                                     
  
 Address:
                                        
                                        
                                        
                             
  
 Social Security No.:
                                        
                                        
                                        
         
  

	(2)	The property with respect to which the election is made is              shares of the Common Stock of DayStar
Technologies, Inc. 

  

	(3)	The property was transferred on                     ,
            . 

  

	(4)	The taxable year for which the election is made is the calendar year             . 

	

	(5)	The property is subject to a repurchase right pursuant to which the issuer has the right to acquire the property at the original exercise price if for any reason taxpayer’s
service with the issuer is terminated. The issuer’s repurchase right lapses in a series of installments over a             —year period ending on
                ,             . 

  

	(6)	The fair market value of such property at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is
$         per share. 

  

	(7)	The amount paid for such property is $         per share. 

  

	(8)	A copy of this statement was furnished to DayStar Technologies, Inc., for whom taxpayer rendered the services underlying the transfer of such property. 

  

	(9)	This statement is executed on                 ,
20        . 

  

	

			
	  	 	 	 	  
	
	 	 	

	 Spouse (if any)
	 	 	 	 Taxpayer

  
 This election must be filed with
the Internal Revenue Service Center with which the Participant files his or her Federal income tax returns and must be filed within 30 days after the date of purchase. This filing should be made by registered or certified mail, return receipt
requested. The Participant must retain two copies of the completed form for filing with his or her Federal and state tax returns for the current tax year and an additional copy for his or records. 
  
  

 Restricted Stock Issuance Agreement 
 Page 10Industrial Lease Agreement

 Exhibit 10.9 
  
 INDUSTRIAL REAL ESTATE LEASE 
 (MULTI-TENANT FACILITY) 
  
 ARTICLE ONE: BASIC TERMS 
  
 This Article One contains the Basic Terms of this Lease between the Landlord and Tenant named below. Other Articles, Sections and Paragraphs of the Lease referred to in this Article One explain and define the Basic Terms and are to be read
in conjunction with the Basic Terms. 
  
 Section 1.01. Date of
Lease: July 8, 2002 
  
 Section 1.02. Landlord (include
legal entity): Johnson Family Trust 
 Address of Landlord: 130 East Main Street, Grass Valley, CA 95945 
  
 Section 1.03. Tenant (include legal entity): Daystar Technologies,
Inc., a Delaware corporation 
 Address of Tenant: 560 E. Broad Street, Nevada City, CA 95959 
  
 Section 1.04. Property: The Property is 900 Golden Gate Terrace, Grass Valley (the “Project”). The Project
includes the land, the buildings and all other improvements located on the land, and the common areas described in Paragraph 4.05(a). The Property is 900 Golden Gate Terrace, Suite A, consisting of 2,940 square feet. 
  
 Section 1.05. Lease Term: 3 years beginning on August 1, 2002
or such other date as is specified in this Lease, and ending on July 31, 2005 
  
 Section 1.06. Permitted Uses: (See Article Five) Office and light manufacturing for solar photovoltaic business. 
  
 Section 1.07. Tenant’s Guarantor: (If none, so state) None. 
  
 Section 1.08. Brokers: (See Article Fourteen) (If none, so state) 
 Landlord’s Broker: None. 
 Tenant’s Broker: Coldwell Banker
Commercial, G.R. Realty, Inc. 
  
 Section 1.09. Commission
Payable to Landlord’s Broker: (See Article Fourteen) 
 $. 
  
 Section 1.10. Initial Security Deposit: (See Section 3.03) $2,205.00 
  
 Section 1.11. Vehicle Parking Spaces Allocated to Tenant: (Section
4.05) Six (6). 
  
 Section 1.12. Rent and Other Charges Payable
by Tenant: 
  

	 	 	1	 	Initials
                            
	 	 	 	 	______________

 (a) BASE RENT: Two thousand two hundred five dollars and 00 cents ($2,205.00), then Two thousand three
hundred fifty-two dollars and 00 cents ($2,352.00) for months 13-24, then Two thousand four hundred ninety-nine dollars and 00 cents ($2,499.00) for months 25-36. 
 as provided in Section 3.01, 
  
 (b) OTHER PERIODIC
PAYMENTS: (i) Real Property Taxes (See Section 4.02); (ii) Utilities (See Section 4.03); (iii) Insurance Premiums (See Section 4.04); (iv) Tenant’s Initial Pro Rata Share of Common Area Expenses 11.76% (See Section 4.05); (v) Impounds for
Insurance Premiums and Property Taxes (See Section 4.08); (vi) Maintenance, Repairs and Alterations (See Article Six). 
  
 Section 1.13. Landlord’s Share of Profit on Assignment or Sublease: (See Section 9.05) one hundred percent (100%) of the Profit (the
“Landlord’s Share”). 
  
 Section 1.14.
Riders: The following Riders are attached to and made part of this Lease: (If none, so state) Addendum 15 through 23. Exhibits A and B. 
  
 ARTICLE TWO: LEASE TERM 
  
 Section 2.01. Lease of Property For Lease Term. Landlord leases the Property to Tenant and Tenant leases the Property from Landlord for the Lease
Term. The Lease Term is for the period stated in Section 1.05 above and shall begin and end on the dates specified in Section 1.05 above, unless the beginning or end of the Lease Term is changed under any provision of this Lease. The
“Commencement Date” shall be the date specified in Section 1.05 above for the beginning of the Lease Term, unless advanced or delayed under any provision of this Lease. 
  
 Section 2.02 Delay in Commencement. Landlord shall not be liable to Tenant if Landlord does not deliver possession of
the Property to Tenant on the Commencement Date. Landlord’s non-delivery of the Property to Tenant on that date shall not affect this Lease or the obligations of Tenant under this Lease except that the Commencement Date shall be delayed until
Landlord delivers possession of the Property to Tenant and the Lease Term shall be extended for a period equal to the delay in delivery of possession of the Property to Tenant, plus the number of days necessary to end the Lease Term on the last day
of a month. If Landlord does not deliver possession of the Property to Tenant within one hundred twenty (120) days after the Commencement Date, Tenant may elect to cancel this Lease by giving written notice to Landlord within ten (10) days after the
one hundred twenty (120) –day period ends. If Tenant gives such notice, the Lease shall be canceled and neither Landlord nor Tenant shall have any further obligations to the other. If Tenant does not give such notice, Tenant’s right to
cancel the Lease shall expire and the Lease Term shall commence upon the delivery of possession of the Property to Tenant. If delivery of possession of the Property to Tenant is delayed, Landlord and Tenant shall, upon such delivery, execute an
amendment to this Lease setting forth the actual Commencement Date and expiration date of the Lease. Failure to execute such amendment shall not affect the actual Commencement Date and expiration date of the Lease. 
  
 Section 2.03. Early Occupancy. If Tenant occupies the Property prior
to the Commencement Date, Tenant’s occupancy of the Property shall be subject to all of the provisions 

  

	 	 	2	 	Initials
                            
	 	 	 	 	______________

 
of this Lease. Early occupancy of the Property shall not advance the expiration date of this Lease. Tenant shall pay Base Rent and all other charges
specified in this Lease for the early occupancy period. 
  
 Section 2.04. Holding Over. Tenant shall vacate the Property upon the expiration or earlier termination of this Lease. Tenant shall reimburse Landlord for and indemnify the Landlord against all damages which Landlord incurs from
Tenant’s delay in vacating the Property. If Tenant does not vacate the Property upon the expiration or earlier termination of the Lease and Landlord thereafter accepts rent from Tenant, Tenant’s occupancy of the Property shall be a
“month-to-month” tenancy, subject to all of the terms of this Lease applicable to a month-to-month tenancy, except that the Base Rent then in effect shall be increased by twenty-five percent (25%). 
  
 ARTICLE THREE: BASE RENT 
  
 Section 3.01. Time and Manner of Payment. Upon execution of this
Lease, Tenant shall pay Landlord the Base Rent in the amount stated in Paragraph 1.12(a) above for the first month of the Lease Term. On the first day of the second month of the Lease Term and each month thereafter, Tenant shall pay the Landlord the
Base Rent, in advance, without offset, deduction or prior demand. The Base Rent shall be payable at Landlord’s address or at such other place as Landlord may designate in writing. 
  
 Section 3.02 Intentionally Left Blank 
  
 Section 3.03. Security Deposit; Increases. 
  
 (a) Upon the execution of this Lease, Tenant shall deposit with Landlord a cash Security Deposit in the amount set forth in
Section 1.10 above. Landlord may apply all or part of the Security Deposit to any unpaid rent or other charges due from Tenant or to cure any other defaults of Tenant. If Landlord uses any part of the Security Deposit, Tenant shall restore the
Security Deposit to its full amount within ten (10) days after Landlord’s written request. Tenant’s failure to do so shall be a material default under this Lease. No interest shall be paid on the Security Deposit. Landlord shall not be
required to keep the Security Deposit separate from its other accounts and no trust relationship is created with respect to the Security Deposit. 
  
 (b) Each time the Base Rent is increased, Tenant shall deposit additional funds with Landlord sufficient to increase the Security Deposit to an amount
which bears the same relationship to the adjusted Base Rent as the initial Security Deposit bore to the initial Base Rent. 
  
 Section 3.04. Termination; Advance Payments. Upon termination of this Lease under Article Seven (Damage or Destruction), Article Eight
(Condemnation) or any other termination not resulting from Tenant’s default, and after Tenant has vacated the Property in the manner required by this Lease, Landlord shall refund or credit to Tenant (or Tenant’s successor) the unused
portion of the Security Deposit, any advance rent or other advance payments made by Tenant to Landlord, and any amounts paid for real property taxes and other reserves which apply to any time periods after the termination of the Lease. 

 

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 ARTICLE FOUR: OTHER CHARGES PAYABLE BY TENANT 
  
 Section 4.01. Additional Rent. All charges payable by Tenant other
than Base Rent are called “Additional Rent.” Unless this Lease provides otherwise, Tenant shall pay all Additional Rent then due with the next monthly installment of Base Rent. The term “rent” shall mean Base Rent and Additional
Rent. 
  
 Section 4.02. Property Taxes. 
  
 (a) Real Property Taxes. Tenant shall pay all real property taxes on
the Property (including any fees, taxes or assessments against, or as a result of, any tenant improvements installed on the Property by or for the benefit of Tenant) during the Lease Term. Subject to Paragraph 4.02(c) and Section 4.08 below, such
payment shall be made at least ten (10) days prior to the delinquency date of the taxes. Within such ten (10) –day period, Tenant shall furnish Landlord with satisfactory evidence that the real property taxes have been paid. Landlord shall
reimburse Tenant for any real property taxes paid by Tenant covering any period of time prior to or after the Lease Term. If Tenant fails to pay the real property taxes when due, Landlord may pay the taxes and Tenant shall reimburse Landlord for the
amount of such tax payment as Additional Rent. 
  
 (b)
Definition of “Real Property Tax.” “Real property tax” means: (i) any fee, license fee, license tax, business license fee, commercial rental tax, levy, charge, assessment, penalty or tax imposed by any taxing authority
against the Property; (ii) any tax on the Landlord’s right to receive, or the receipt of, rent or income from the Property or against Landlord’s business of leasing the Property; (iii) any tax or charge for fire protection, streets,
sidewalks, road maintenance, refuse or other services provided to the Property by any governmental agency; (iv) any tax imposed upon this transaction or based upon a re-assessment of the Property due to a change of ownership, as defined by
applicable law, or other transfer of all or part of Landlord’s interest in the Property; and (v) any charge or fee replacing any tax previously included within the definition of real property tax. “Real property tax” does not,
however, include Landlord’s federal or state income, franchise, inheritance or estate taxes. 
  
 (c) Joint Assessment. If the Property is not separately assessed, Tenant’s share of the real property tax payable by Tenant under Paragraph
4.02(a) shall be the percentage set forth in Section 1.12(b)(iv). Tenant shall pay such share to Landlord within fifteen (15) days after receipt of Landlord’s written statement. 
  
 (d) Personal Property Taxes. 
  

(i) Tenant shall pay all taxes charged against trade fixtures, furnishings, equipment or any other personal property belonging to
Tenant. Tenant shall try to have personal property taxed separately from the Property. 
  

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 (ii) If any of Tenant’s personal property is taxed with the Property, Tenant shall
pay Landlord the taxes for the personal property within fifteen (15) days after Tenant receives a written statement from Landlord for such personal property taxes. 
  
 4.03. Utilities. Tenant shall pay, directly to the appropriate supplier, the cost of all natural gas, heat, light,
power, sewer service, telephone, water, refuse disposal and other utilities, and services supplied to the Property. However, if any services or utilities are jointly metered with other property proportionate share of the cost of such utilities and
services shall be in accordance with Section 1.12(b)(iv) and Tenant shall pay such share to Landlord within fifteen (15) days after receipt of Landlord’s written statement. 
  
 Section 4.04. Insurance Policies. 
  
 (a) Liability Insurance. During the Lease Term, Tenant shall maintain a policy of commercial general liability
insurance (sometimes known as broad form comprehensive general liability insurance) insuring Tenant against liability for bodily injury, property damage (including loss of use of property) and personal injury arising out of the operation, use or
occupancy of the Property. Tenant shall name Landlord as an additional insured under such policy. The initial amount of such insurance shall be One Million Dollars ($1,000,000) per occurrence and shall be subject to periodic increase based upon
inflation, increased liability awards, recommendation of Landlord’s professional insurance advisers and other relevant factors. The liability insurance obtained by Tenant under this Paragraph 4.04(a) shall (i) be primary and; and (ii) insure
Landlord against Tenant’s performance under Section 5.05, if the matters giving rise to the indemnity under Section 5.05 result from the negligence of Tenant. The amount and coverage of such insurance shall not limit Tenant’s liability nor
relieve Tenant of any other obligation under this Lease. Landlord may also obtain comprehensive public liability insurance in an amount and with coverage determined by Landlord insuring Landlord against liability arising out of ownership, operation,
use or occupancy of the Property. 
  
 (b) Property and Rental
Income Insurance. During the Lease Term, Landlord shall maintain policies of insurance covering loss of or damage to the Property in the full amount of its replacement value. Such policy shall contain an Inflation Guard Endorsement and shall
provide protection against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, special extended perils (all risk), sprinkler leakage and any other perils which Landlord deems reasonably necessary.
Landlord shall have the right to obtain flood and earthquake insurance if required by any lender holding a security interest in the Property. Landlord shall not obtain insurance for Tenant’s fixtures or equipment and or building improvements
installed by Tenant on the Property. During the Lease Term, Landlord shall also maintain a rental income insurance policy, with loss payable to Landlord, in an amount equal to one year’s Base Rent, plus estimated real property taxes and
insurance premiums. Tenant shall be liable for the payment of its prorate share as described in Section 1.12(b) of any deductible amount under Landlord’s or Tenant’s insurance policies maintained pursuant to this Section 4.04, in an amount
not to exceed Ten Thousand Dollars ($10,000). Tenant shall not do or permit anything to be done which invalidates any such insurance policies. 
  

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 (c) Payment of Premiums. Subject to Section 4.08, Tenant shall pay all premiums for the insurance
policies described in Paragraphs 4.04(a) and (b) (whether obtained by Landlord or Tenant) within fifteen (15) days after Tenant’s receipt of a copy of the premium statement or other evidence of the amount due. For insurance policies maintained
by Landlord which cover improvements on the entire Project, Tenant shall pay Tenant’s prorated share of the premiums, in accordance with the formula in Paragraph 4.05(e) for determining Tenant’s share of Common Area costs. If insurance
policies maintained by Landlord cover improvements on real property other than the Project, Landlord shall deliver to Tenant a statement of the premium applicable to the Property showing in reasonable detail how Tenant’s share of the premium
was computed. If the Lease Term expires before the expiration of an insurance policy maintained by Landlord, Tenant shall be liable for Tenant’s prorated share of the insurance premiums. Before the Commencement Date, Tenant shall deliver to
Landlord a copy of any policy of insurance which Tenant is required to maintain under this Section 4.04. At least thirty (30) days prior to the expiration of any such policy, Tenant shall deliver to Landlord a renewal of such policy. As an
alternative to providing a policy of insurance, Tenant shall have the right to provide Landlord a certificate of insurance, executed by an authorized officer of the insurance company, showing that the insurance which Tenant is required to maintain
under this Section 4.04 is in full force and effect and containing such other information which Landlord reasonably requires. 
  
 (d) General Insurance Provisions. 
  
 (i) Any insurance which Tenant is required to maintain under this Lease shall include a provision which requires the insurance carrier to
give Landlord not less than thirty (30) days’ written notice prior to any cancellation or modification of such coverage. 
  
 (ii) If Tenant fails to deliver any policy, certificate or renewal to Landlord required under this Lease within the prescribed time period
or if any such policy is canceled or modified during the Lease term without Landlord’s consent, Landlord may obtain such insurance, in which case Tenant shall reimburse Landlord for the cost of such insurance within fifteen (15) days after
receipt of a statement that indicates the cost of such insurance. 
  
 (iii) Tenant shall maintain all insurance required under this Lease with companies holding a “General Policy Rating” of A-12 or better, as set forth in the most current issue of “Best Key Rating
Guide”. Landlord and Tenant acknowledge the insurance markets are rapidly changing and that insurance in the form and amounts described in this Section 4.04 may not be available in the future. Tenant acknowledges that the insurance described in
this Section 4.04 is for the primary benefit of Landlord. If at any time during the Lease Term, Tenant is unable to maintain title insurance required under the Lease, Tenant shall nevertheless maintain insurance coverage which is customary and
commercially reasonable in the insurance industry for Tenant’s type of business, as that coverage may change from time to time. Landlord makes no representation as to the adequacy of such insurance to protect Landlord’s or Tenant’s
interests. Therefore, Tenant shall obtain any such additional property or liability insurance which Tenant deems necessary to protect Landlord and Tenant. 
  

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 Section 4.05. Common Areas; Use, Maintainence and Costs. 
  
 (a) Common Areas. As used in this Lease, “Common Areas”
shall mean all areas within the Project which are available for the common use of tenants of the Project and which are not leased or held for the exclusive use of Tenant or other tenants, including, but not limited to, parking areas, driveways,
sidewalks, loading areas, access roads, corridors, landscaping and planted areas. Landlord, from time to time, may change the size, location, nature and use of any of the common Areas, convert Common Areas into leaseable areas, construct additional
parking facilities (including parking structures) in the Common Areas, and increase or decrease Common Area land and/or facilities. Tenant acknowledges that such activities may result in inconvenience to Tenant. Such activities and changes are
permitted if they do not materially affect Tenant’s use of the Property. 
  
 (b) Use of Common Areas. Tenant shall have the nonexclusive right (in common with other tenants and all others to whom Landlord has granted or may grant such rights) to use the Common Areas for the purposes
intended, subject to such reasonable rules and regulations as Landlord may establish from time to time. Tenant shall abide by such rules and regulations and shall use its best effort to cause others who use the Common Areas with Tenant’s
express or implied permission to abide by Landlord’s rules and regulations. At any time, Landlord may close any Common Areas to perform any acts in the Common Areas as, in Landlord’s judgment, are desirable to improve the Project. Tenant
shall not interfere with the rights of Landlord, other tenants or any other person entitled to use the Common Areas. 
  
 (c) Specific Provision re: Vehicle Parking. Tenant shall be entitled to use the number of vehicle parking spaces in the Project allocated to Tenant
in Section 1.11 of the Lease without paying any additional rent. Tenant’s parking shall not be reserved and shall be limited to vehicles no larger than standard size automobiles or pickup utility vehicles. Tenant shall not cause large trucks or
other large vehicles to be parked within the Project or on the adjacent public streets. Temporary parking of large delivery vehicles in the Project may be permitted by the rules and regulations established by Landlord. Vehicles shall be parked only
in striped parking spaces and not in driveways, loading areas or other locations not specifically designated for parking. Handicapped spaces shall only be used by those legally permitted to use them. If Tenant parks more vehicles in the parking area
than the number set forth in Section 1.11 of this Lease, such conduct shall be a material breach of this Lease. In addition to Landlord’s other remedies under the Lease, Tenant shall pay a daily charge determined by Landlord for each such
additional vehicle. 
  
 (d) Maintenance of Common Areas.
Landlord shall maintain the Common Areas in good order, condition and repair and shall operate the Project, in Landlord’s sole discretion, as a first-class industrial/commercial real property development. Tenant shall pay Tenant’s pro rata
share (as determined below) of all costs incurred by Landlord for the operation and maintenance of the common Areas. Common Area costs include, but are not limited to, costs and expenses for the following: gardening and landscaping; utilities, water
and sewage charges; maintenance of signs (other than tenants’ signs); premiums for liability, property damage, fire and other types of casualty insurance on the Common Areas and worker’s compensation insurance; all property taxes and
assessments levied on or attributable to the Common Areas and all Common Area 

  

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improvements; all personal property taxes levied on or attributable to personal property used in connection with the Common Areas; straight-line depreciation
on personal property owned by Landlord which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Landlord for rented or leased personal property used in the operation or maintenance of the Common Areas;
fees for required licenses and permits; repairing, resurfacing, repaving, maintaining, painting, lighting, cleaning, refuse removal, security and similar items. Landlord may cause any or all of such services to be provided by third parties and the
cost of such services shall be included in Common Area costs. Common Area costs shall not include depreciation of real property which forms part of the Common Areas. 
  
 (e) Tenant’s Share and Payment. Tenant shall pay Tenant’s annual pro rata share of all Common Area costs
(prorated for any fractional month) upon written notice from Landlord that such costs are due and payable, and in any event prior to delinquency. Tenant’s pro rata share shall be calculated by dividing the square foot area of the property, as
set forth in Section 1.04 of the Lease, by the aggregate square foot area of the Project which is leased or held for lease by tenants, as of the date on which the computation is made. Tenant’s initial pro rata share is set out in Paragraph
1.13(b). Any changes in the Common Area costs and/or the aggregate area of the Project leased or held for lease during the Lease Term shall be effective on the first day of the month after such change occurs. Landlord may, at Landlord’s
election, estimate in advance and charge to Tenant as Common Area costs, all real property taxes for which Tenant is liable under Section 4.02 of the Lease, all insurance premiums for which Tenant is liable under Section 4.04 of the Lease, all
maintenance and repair costs for which Tenant is liable under Section 6.04 of the Lease, and all other Common Area costs payable by Tenant hereunder. At Landlord’s election, such statements of estimated Common Area costs shall be delivered
monthly, quarterly or at any other periodic intervals to be designated by Landlord. Landlord may adjust such estimates at any time based upon Landlord’s experience and reasonable anticipation of costs. Such adjustments shall be effective as of
the next rent payment date after notice to Tenant. Within sixty (60) days after the end of each calendar year of the Lease Term, Landlord shall deliver to Tenant a statement prepared in accordance with generally accepted accounting principles
setting forth, in reasonable detail, the Common Area costs paid or incurred by Landlord during the preceding calendar year and Tenant’s pro rata share. Upon receipt of such statement, there shall be an adjustment between Landlord and Tenant,
with payment to or credit given by Landlord (as the case may be) so that Landlord shall receive the entire amount of Tenant’s share of such costs and expenses for such period. 
  
 Section 4.06. Late Charges. Tenant’s failure to pay rent promptly may cause Landlord to incur unanticipated
costs. The exact amount of such costs are impractical or extremely difficult to ascertain. Such costs may include, but are not limited to, processing and account charges and late charges which may be imposed on Landlord by any ground lease, mortgage
or trust deed encumbering the Property. Therefore, if Landlord does not receive any rent payment within ten (10) days after it becomes due, Tenant shall pay, Landlord a late charge equal to ten percent (10%) of the overdue amount. The parties agree
that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of such late payment. 
  
 Section 4.07. Interest on Past Due Obligations. Any amount owed by Tenant to Landlord which is not paid when due shall bear interest at the rate of
fifteen percent (15%) per 

  

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annum from the due date of such amount. However, interest shall not be payable on late charges to be paid by Tenant under this Lease. The payment of interest
on such amounts shall not excuse or cure any default by Tenant under this Lease. If the interest rate specified in this Lease is higher than the rate permitted by law, the interest rate is hereby decreased to the maximum legal interest rate
permitted by law. 
  
 Section 4.08. Impounds of Insurance
Premiums and Real Property Taxes. If requested by any ground lessor or lender to whom Landlord has granted a security interest in the Property, Tenant shall pay Landlord a sum equal to one-twelfth (1/12) of the annual real property taxes and
insurance premiums payable by Tenant under this Lease, together with each payment of Base Rent. Landlord shall hold such payments in a non-interest bearing impound account. If unknown, Landlord shall reasonably estimate the amount of real property
taxes and insurance premiums when due. Tenant shall pay any deficiency of funds in the impound account to Landlord upon written request. If Tenant defaults under this Lease, Landlord may apply any funds in the impound account to any obligation then
due under this Lease. 
  
 ARTICLE FIVE: USE OF
PROPERTY 
  
 Section 5.01. Permitted Uses. Tenant may
use the Property only for the Permitted Uses set forth in Section 1.06 above. 
  
 Section 5.02. Manner of Use. Tenant shall not cause or permit the Property to be used in any way which constitutes a violation of any law, ordinance, or governmental regulation or order, which annoys or
interferes with the rights of tenants of the Project, or which constitutes a nuisance or waste. Tenant shall obtain and pay for all permits, including a Certificate of Occupancy, required for Tenant’s occupancy of the Property and shall
promptly take all actions necessary to comply with all applicable statutes, ordinances, rules, regulations, orders and requirements regulating the use by Tenant of the Property, including the Occupational Safety and Health Act. 
  
 Section 5.03. Hazardous Materials. As used in this Lease, the term
“Hazardous Material” means any flammable items, explosives, radioactive materials, hazardous or toxic substances, material or waste or related materials, including any substances defined as or included in the definition of “hazardous
substances”, “hazardous wastes”, “hazardous materials” or “toxic substances” now or subsequently regulated under any applicable federal, state or local laws or regulations, including without limitation
petroleum-based products, paints, solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonia compounds and other chemical products, asbestos, PCBs and similar compounds, and including any different products and materials which are
subsequently found to have adverse effects on the environment or the health and safety of persons. Tenant shall not cause or permit any Hazardous Material to be generated, produced, brought upon, used, stored, treated or disposed of in or about the
Property by Tenant, its agents, employees, contractors, sublessees or invitees without the prior written consent of Landlord. Landlord shall be entitled to take into account such other factors or facts as Landlord may reasonably determine to be
relevant in determining whether to grant or withhold consent to Tenant’s proposed activity with respect to Hazardous Material. In no event, however, shall Landlord be required to consent to the installation or use of any storage tanks on the
Property. 
  

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 Section 5.04. Signs and Auctions. Tenant shall not place any signs on the Property without
Landlord’s prior written consent. Tenant shall not conduct or permit any auctions or sheriff’s sales at the Property. 
  
 Section 5.05. Indemnity. Tenant shall indemnify Landlord against and hold Landlord harmless from any and all costs, claims-or liability arising
from (a) Tenant’s use of the Property; (b) the conduct of Tenant’s business or anything else done or permitted by Tenant to be done in or about the Property, including any contamination of the Property or any other property resulting from
the presence or use of Hazardous Material caused or permitted by Tenant; (c) any breach or default in the performance of Tenant’s obligations under this Lease; (d) any misrepresentation or breach of warranty by Tenant under this Lease; or (e)
other acts or omissions of Tenant. Tenant shall defend Landlord against any such cost, claim or liability at Tenant’s expense with counsel reasonably acceptable to Landlord or, at Landlord’s election, Tenant shall reimburse Landlord for
any legal fees or costs incurred by Landlord in connection with any such claim. As a material part of the consideration to Landlord, Tenant assumes all risk of damage to property or injury to persons in or about the Property arising from any cause,
and Tenant hereby waives all claims in respect thereof against Landlord, except for any claim arising out of Landlord’s gross negligence or willful misconduct. As used in this Section, the term “Tenant” shall include Tenant’s
employees, agents, contractors and invitees, if applicable. 
  
 Section 5.06. Landlord’s Access. Landlord or its agents may enter the Property at all reasonable times to show the Property to potential buyers, investors or tenants or other parties; to do any other act or to inspect and
conduct tests in order to monitor Tenant’s compliance with all applicable environmental laws and all laws governing the presence and use of Hazardous Material; or for any other purpose Landlord deems necessary. Landlord shall give Tenant prior
notice of such entry, except in the case of an emergency. Landlord may place customary “For Sale” or “For Lease” signs on the Property. 
  
 Section 5.07. Quiet Possession. If Tenant pays the rent and complies with all other terms of this Lease, Tenant may occupy and enjoy the Property
for the full Lease Term, subject to the provisiosn of this Lease. 
  
 ARTICLE SIX: CONDITION OF PROPERTY; MAINTENANCE, REPAIRS AND ALTERATIONS 
  
 Section 6.01. Existing Conditions. Tenant accepts the Property in its condition as of the execution of the Lease, subject to all recorded matters,
laws, ordinances, and governmental regulations and orders. Except as provided herein, Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation as to the condition of the Property or the suitability of the
Property for Tenant’s intended use. Tenant represents and warrants that Tenant has made its own inspection of and inquiry regarding the condition of the Property and is not relying on any representations of Landlord or any Broker with respect
thereto. If Landlord or Landlord’s Broker has provided a Property Information Sheet or other Disclosure Statement regarding the Property, a copy is attached as an exhibit to the Lease. 
  

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 Section 6.02 Exemption of Landlord from Liability. Landlord shall not be liable for any damage or
injury to the person, business (or any loss of income therefrom), goods, wares, merchandise or other property of Tenant, Tenant’s employees, invitees, customers or any other person in or about the Property, whether such damage or injury is
caused by or results from: (a) fire, steam, electricity, water, gas or rain; (b) the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures or any other cause; (c)
conditions arising in or about the Property or upon other portions of the Project, or from other sources or places; or (d) any act or omission of any other tenant of the Project. Landlord shall not be liable for any such damage or injury even though
the cause of or the means of repairing such damage or injury are not accessible to Tenant. The provisions of this Section 6.02 shall not, however, exempt Landlord from liability for Landlord’s gross negligence or willful misconduct. 

 
 Section 6.03. Landlord’s Obligations. 
  
 (a) Except as provided in Article Seven (Damage or Destruction) and Article
Eight (Condemnation), Landlord shall keep the following in good order, condition and repair: the foundations, exterior walls and roof of the Property (including painting the exterior surface of the exterior walls of the Property not more often than
once every five (5) years, if necessary) and all components of electrical, mechanical, plumbing, heating and air conditioning systems and facilities located in the Property which are concealed or used in common by tenants of the Project. However,
Landlord shall not be obligated to maintain or repair windows, doors, plate glass or the interior surfaces of exterior walls. Landlord shall make repairs under this Section 6.03 within a reasonable time after receipt of written notice from Tenant of
the need for such repairs. 
  
 (b) Tenant shall pay or reimburse
Landlord for all costs Landlord incurs under Paragraph 6.03(a) above except for the foundations, exterior walls (including paint), and roof as Common Area costs as provided for in Section 4.05 of the Lease. Tenant waives the benefit of any statute
in effect now or in the future which might give Tenant the right to make repairs at Landlord’s expense or to terminate this Lease due to Landlord’s failure to keep the Property in good order, condition and repair. 
  
 Section 6.04. Tenant’s Obligations. 
  
 (a) Except as provided in Section 6.03, Article Seven (damage or Destruction)
and Article Eight (Condemnation), Tenant shall keep all portions of the Property (including structural, nonstructural, interior, systems and equipment) in good order, condition and repair (including interior repainting and refinishing, as needed).
If any portion of the Property or any system or equipment in the Property which Tenant is obligated to repair cannot be fully repaired or restored, Tenant shall promptly replace such portion of the Property or system or equipment in the Property,
regardless of whether the benefit of such replacement extends beyond the Lease Term; but if the benefit or useful life of such replacement extends beyond the Lease Term (as such term may be extended by exercise of any options), the useful life of
such replacement shall be prorated over the remaining portion of the Lease Term (as extended), and Tenant shall be liable only for that portion of the cost which is applicable to the Lease Term (as extended). If 

  

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any part of the Property or the Project is damaged by any act or omission of Tenant, Tenant shall pay Landlord the cost of repairing or replacing such
damaged property, whether or not Landlord would otherwise be obligated to pay the cost of maintaining or repairing such property. It is the intention of Landlord and Tenant that at all times Tenant shall maintain the portions of the Property which
Tenant is obligated to maintain in an attractive, first-class and fully operative condition. 
  
 (b) Tenant shall fulfill all of Tenant’s obligations under this Section 6.04 at Tenant’s sole expense. If Tenant fails to maintain, repair or replace the Property as required by this Section 6.04, Landlord
may, upon ten (10) days prior notice to Tenant (except that no notice shall be required in the case of an emergency), enter the Property and perform such maintenance or repair (including replacement, as needed) on behalf of Tenant. In such case,
Tenant shall reimburse Landlord for all costs incurred in performing such maintenance or repair immediately upon demand. 
  
 6.05. Alterations, Additions, and Improvements. 
  
 (a) Tenant shall not make any alterations, additions, or improvements to the Property without Landlord’s prior written consent, except for
non-structural alterations which do not exceed Ten Thousand Dollars ($10,000) in cost cumulatively over the Lease Term and which are not visible from the outside of any building of which the Property is part. Landlord may require Tenant to provide
demolition and/or lien and completion bonds in form and amount satisfactory to Landlord. Tenant shall promptly remove any alterations, additions, or improvements constructed in violation of this Paragraph 6.05(a) upon Landlord’s written
request. All alterations, additions, and improvements shall be done in a good and workmanlike manner, in conformity with all applicable laws and regulations, and by a contractor approved by Landlord. Upon completion of any such work, Tenant shall
provide Landlord with “as built” plans, copies of all construction contracts, and proof of payment for all labor and materials. 
  
 (b) Tenant shall pay when due all claims for labor and material furnished to the Property. Tenant shall give Landlord at least twenty (20) days’
prior written notice of the commencement of any work on the Property, regardless of whether Landlord’s consent to such work is required. Landlord may elect to record and post notices of non-responsibility on the Property. 
  
 Section 6.06. Condition upon Termination. Upon termination of the
Lease, Tenant shall surrender the Property to Landlord, broom clean and in the same condition as received except for ordinary wear and tear which Tenant was not otherwise obligated to remedy under any provision of this Lease. However, Tenant shall
not be obligated to repair any damage which Landlord is required to repair under Article Seven (Damage or Destruction). In addition, Landlord may require Tenant to remove any alterations, additions or improvements (whether or not made with
Landlord’s consent) prior to the expiration of the Lease and to restore the Property to its condition at the time of occupancy, all at Tenant’s expense. All alterations, additions and improvements which Landlord has not required Tenant to
remove shall become Landlord’s property and shall be surrendered to Landlord upon the expiration or earlier termination of the Lease, except that Tenant may remove any of Tenant’s machinery or equipment which can be removed without
material damage to the Property. Tenant shall repair, at Tenant’s expense, any 

  

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damage to the Property caused by the removal of any such machinery or equipment. In no event, however, shall Tenant remove any of the following materials or
equipment (which shall be deemed Landlord’s property) without Landlord’s prior written consent: any power wiring or power panels; lighting or lighting fixtures; wall coverings; drapes, blinds or other window coverings; carpets or other
floor coverings; heaters, air conditioners or any other heating or air conditioning equipment; fencing or security gates; or other similar building operating equipment and decorations. 
  
 ARTICLE SEVEN: DAMAGE OR DESTRUCTION 
  
 Section 7.01. Partial Damage to Property. 
  
 (a) Tenant shall notify Landlord in writing immediately upon the occurrence of any damage to the Property. If the Property
is only partially damaged (i.e., less than fifty percent (50%) of the Property is unrenantable as a result of such damage or less than fifty percent (50%) of Tenant’s operations are materially impaired) and if the proceeds received by Landlord
from the insurance policies described in Paragraph 4.04(b) are sufficient to pay for the necessary repairs, this Lease shall remain in effect and Landlord shall repair the damage as soon as reasonably possible. Landlord may elect (but it is not
required) to repair any damage to Tenant’s fixtures, equipment, or improvements. 
  
 (b) If the insurance proceeds received by Landlord are not sufficient to pay the entire cost of repair, or if the cause of the damage is not covered by the insurance policies which Landlord maintains under Paragraph
4.04(b), Landlord may elect either to (i) repair the damage as soon as reasonably possible, in which case this Lease shall remain in full force and effect, or (ii) terminate this Lease as of the date the damage occurred. Landlord shall notify Tenant
within thirty (30) days after receipt of notice of the occurrence of the damage whether Landlord elects to repair the damage or terminate the Lease. If Landlord elects to repair the damage, Tenant shall pay Landlord the “deductible amount”
(if any) under Landlord’s insurance policies and, if the damage was due to an act or omission of Tenant, or Tenant’s employees, agents, contractors or invitees, the difference between the actual cost of repair and any insurance proceeds
received by Landlord. If Landlord elects to terminate this Lease, Tenant may elect to continue this Lease in full force and effect, in which case Tenant shall repair any damage to the property and any building in which the Property is located.
Tenant shall pay the cost of such repairs, except that upon satisfactory completion of such repairs, Landlord shall deliver to Tenant any insurance proceeds received by Landlord for the damage repaired by Tenant. Tenant shall give Landlord written
notice of such election within ten (10) days after receiving Landlord’s termination notice. 
  
 (c) If the damage to the Property occurs during the last six (6) months of the Lease Term and such damage will require more than thirty (30) days to
repair, either Landlord or Tenant may elect to terminate this Lease as of the date the damage occurred, regardless of the sufficiency of any insurance proceeds. The party electing to terminate this Lease shall give written notification to the other
party of such election within thirty (30) days after Tenant’s notice to Landlord of the occurrence of the damage. 
  

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 Section 7.02. Substantial or Total Destruction. If the Property is substantially or totally
destroyed by any cause whatsoever (i.e., the damage to the Property is greater than partial damage as described in Section 7.01), and regardless of whether Landlord receives any insurance proceeds, this Lease shall terminate as of the date the
destruction occurred. Notwithstanding the preceding sentence, if the Property can be rebuilt within six (6) months after the date of destruction, Landlord may elect to rebuild the Property at Landlord’s own expense, in which case this Lease
shall remain in full force and effect. Landlord shall notify Tenant of such election within thirty (30) days after Tenant’s notice of the occurrence of total or substantial destruction. If Landlord so elects, Landlord shall rebuild the Property
at Landlord’s sole expense, except that if the destruction was caused by an act or omission of Tenant, Tenant shall pay Landlord the difference between the actual cost of rebuilding and any insurance proceeds received by Landlord. 

 
 Section 7.03. Temporary Reduction of Rent. If the Property is
destroyed or damaged and Landlord or Tenant repairs or restores the Property pursuant to the provisions of this Article Seven, any rent payable during the period of such damage, repair and/or restoration shall be reduced according to the degree, if
any, to which Tenant’s use of the Property is impaired. However, the reduction shall not exceed the sum of one year’s payment of Base Rent, insurance premiums and real property taxes. Except for such possible reduction in Base Rent,
insurance premiums and real property taxes, Tenant shall not be entitled to any compensation, reduction, or reimbursement from Landlord as a result of any damage, destruction, repair, or restoration of or to the Property. 
  
 Section 7.04. Waiver. Tenant waives the protection of any statute,
code or judicial decision which grants a tenant the right to terminate a lease in the event of the substantial or total destruction of the leased property. Tenant agrees that the provisions of Section 7.02 above shall govern the rights and
obligations of Landlord and Tenant in the event of any substantial or total destruction to the Property. 
  
 ARTICLE EIGHT: CONDEMNATION 
  
 If all or any portion of the Property is taken under the power of eminent domain or sold under the threat of that power (all of which are called
“Condemnation”), this Lease shall terminate as to the part taken or sold on the date the condemning authority takes title or possession, whichever occurs first. If more than twenty percent (20%) of the floor area of the building in which
the Property is located, or which is located on the Property, is taken, either Landlord or Tenant may terminate this Lease as of the date the condemning authority takes title or possession, by delivering written notice to the other within ten (10)
days after receipt of written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority takes title or possession). If neither Landlord nor Tenant terminates this lease, this Lease shall remain in
effect as to the portion of the Property not taken, except that the Base Rent and Additional Rent shall be reduced in proportion to the reduction in the floor area of the Property. Any condemnation award or payment shall be distributed in the
following order: (a) first, to any ground lessor, mortgagee or beneficiary under a deed of trust encumbering the Property, the amount of its interest in the Property; (b) second, to Tenant, only the amount of any award specifically designated for
loss of or damage to Tenant’s trade fixtures or removable 

  

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personal property; and (c) third, to Landlord, the remainder of such award, whether as compensation for reduction in the value of the leasehold, the taking
of the fee, or otherwise. If this Lease is not terminated, Landlord shall repair any damage to the Property caused by the Condemnation, except that Landlord shall not be obligated to repair any damage for which Tenant has been reimbursed by the
condemning authority. If the severance damages received by landlord are not sufficient to pay for such repair, Landlord shall have the right to either terminate this Lease or make such repair at Landlord’s expense. 
  
 ARTICLE NINE: ASSIGNMENT AND SUBLETTING 

 
 Section 9.01. Landlord’s Consent Required. No portion of the
Property or of Tenant’s interest in this Lease may be acquired by any other person or entity, whether by sale, assignment, mortgage, sublease, transfer, operation of law, or act of Tenant, without Landlord’s prior written consent, except
as provided in Section 9.02 below. Landlord has the right to grant or withhold its consent as provided in Section 9.05 below. Any attempted transfer without consent shall be void and shall constitute a non-curable breach of this Lease. If Tenant is
a partnership, any cumulative transfer of more than twenty percent (20%) of the partnership interests shall require Landlord’s consent. If Tenant is a corporation, any change in the ownership of a controlling interest of the voting stock of the
corporation shall require Landlord’s consent. 
  
 Section
9.02. Tenant Affiliate. Tenant may assign this Lease or sublease the Property, without Landlord’s consent, to any corporation which controls, is controlled by or is under common control with Tenant, or to any corporation resulting from
the merger of or consolidation with Tenant (“Tenant’s Affiliate”). In such case, any Tenant’s Affiliate shall assume in writing all of Tenant’s obligations under this Lease. 
  
 Section 9.03. No Release of Tenant. No transfer permitted by this
Article Nine, whether with or without Landlord’s consent, shall release Tenant or change Tenant’s primary liability to pay the rent and to perform all other obligations of Tenant under this Lease, Landlord’s acceptance of rent from
any other person is not a waiver of any provision of this Article Nine. Consent to one transfer is not a consent to any subsequent transfer. If Tenant’s transferee defaults under this Lease, Landlord may proceed directly against Tenant without
pursuing remedies against the transferee. Landlord may consent to subsequent assignments or modifications of this Lease by Tenant’s transferee, without notifying Tenant or obtaining its consent. Such action shall not relieve Tenant’s
liability under this Lease. 
  
 Section 9.04. Offer to
Terminate. If Tenant desires to assign the Lease or sublease the Property, Tenant shall have the right to offer, in writing, to terminate the Lease as of a date specified in the offer. If Landlord elects in writing to accept the offer to
terminate within twenty (20) days after notice of the offer, the Lease shall terminate as of the date specified and all the terms and provisions of the Lease governing termination shall apply. If Landlord does not so elect, the Lease shall continue
in effect until otherwise terminated and the provisions of Section 9.05 with respect to any proposed transfer shall continue to apply. 
  

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 Section 9.05. Landlord’s Consent. 
  
 (a) Tenant’s request for consent to any transfer described in Section
9.01 shall set forth in writing the details of the proposed transfer, including the name, business and financial condition of the prospective transferee, financial details of the proposed transfer (e.g., the term of and the rent and security deposit
payable under any proposed assignment or sublease), and any other information Landlord deems relevant. Landlord shall have the right to withhold consent, if reasonable, or to grant consent, based on the following factors: (i) the business of the
proposed assignee or subtenant and the proposed use of the Property; (ii) the net worth and financial reputation of the proposed assignee or subtenant; (iii) Tenant’s compliance with all of its obligations under the Lease; and (iv) such other
factors as Landlord may reasonably deem relevant. If Landlord objects to a proposed assignment solely because of the net worth and/or financial reputation of the proposed assignee, Tenant may nonetheless sublease (but not assign), all or a portion
of the Property to the proposed transferee, but only on the other terms of the proposed transfer. 
  
 (b) If Tenant assigns or subleases, the following shall apply: 
  
 Tenant shall provide Landlord a written statement certifying all amounts to be paid from any assignment or sublease of the Property within
thirty (30) days after the transaction documentation is signed, and Landlord may inspect Tenant’s books and records to verify the accuracy of such statement. On written request, Tenant shall promptly furnish to Landlord copies of all the
transaction documentation, all of which shall be certified by Tenant to be complete, true and correct. The breach of Tenant’s obligation under this Paragraph 9.05(b) shall be a material default of the Lease. 
  
 Section 9.06. No Merger. No merger shall result from Tenant’s
sublease of the Property under this Article Nine, Tenant’s surrender of this Lease or the termination of this Lease in any other manner. In any such event, Landlord may terminate any or all subtenancies or succeed to the interest of Tenant as
sublandlord under any or all subtenancies. 
  
 ARTICLE TEN: DEFAULTS; REMEDIES 
  
 Section 10.01.
Covenants and Conditions. Tenant’s performance of each of Tenant’s obligations under this Lease is a condition as well as a covenant. Tenant’s right to continue in possession of the Property is conditioned upon such
performance. Time is of the essence in the performance of all covenants and conditions. 
  
 Section 10.02. Defaults. Tenant shall be in material default under this Lease: 
  
 (a) If Tenant abandons the Property or if Tenant’s vacation of the Property results in the cancellation of any insurance described in Section 4.04;

  
 (b) If tenant fails to pay rent or any other charge when due;

  
 (c) If Tenant fails to perform any of Tenant’s
non-monetary obligations under this Lease for a period of thirty (30) days after written notice from Landlord; provided that if more than thirty (30) days are required to complete such performance, Tenant shall not be in default if 

  

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Tenant commences such performance within the thirty (30) -day period and thereafter diligently pursues its completion. However, Landlord shall not be
required to give such notice if Tenant’s failure to perform constitutes a non-curable breach of this Lease. The notice required by this Paragraph is intended to satisfy any and all notice requirements imposed by law on Landlord and is not in
addition to any such requirement. 
  
 (d) (i) If Tenant makes a
general assignment or general arrangement for the benefit of creditors; (ii) if a petition for adjudication of bankruptcy or for reorganization or rearrangement is filed by or against Tenant and is not dismissed within thirty (30) days; (iii) if a
trustee or receiver is appointed to take possession of substantially all of Tenant’s assets located at the Property or of Tenant’s interest in this Lease and possession is not restored to Tenant within thirty (30) days; or (iv) if
substantially all of Tenant’s assets located at the Property or of Tenant’s interest in this Lease is subjected to attachment, execution or other judicial seizure which is not discharged within thirty (30) days. If a court of competent
jurisdiction determines that any of the acts described in this subparagraph (d) is not a default under this Lease, and a trustee is appointed to take possession (or if Tenant remains a debtor in possession) and such trustee or Tenant transfers
tenant’s interest hereunder, then Landlord shall receive, as Additional Rent, the excess, if any, of the rent (or any other consideration) paid in connection with such assignment or sublease over the rent payable by Tenant under this Lease.

  
 (e) If any guarantor of the Lease revokes or otherwise
terminates, or purports to revoke or otherwise terminate, any guaranty of all or any portion of Tenant’s obligations under the Lease. Unless otherwise expressly provided, no guaranty of the Lease is revocable. 
  
 Section 10.03. Remedies. On the occurrence of any material default 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: 
  
 (a) Terminate Tenant’s right to possession of the Property by any lawful means, in which case this Lease shall
terminate and Tenant shall immediately surrender possession of the Property to Landlord. In such event, Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant’s default, including (i) the worth at
the time of the award of the unpaid Base Rent, Additional Rent and other charges which Landlord had earned at the time of the termination; (ii) the worth at the time of the award of the amount by which the unpaid Base Rent, Additional Rent and other
charges which Landlord would have earned after termination until the time of the award exceeds the amount of such rental loss that Tenant proves Landlord could have reasonably avoided; (iii) the worth at the time of the award of the amount by which
the unpaid Base Rent, Additional Rent and other charges which Tenant would have paid for the balance of the Lease term after the time of award exceeds the amount of such rental loss that Tenant proves Landlord could have reasonably avoided; and (iv)
any other amount necessary to compensate Landlord for all the 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, any costs or expenses Landlord incurs in maintaining or preserving the Property after such default, the cost of recovering possession of the Property, expenses of reletting, including necessary renovation or alteration of the
Property, Landlord’s reasonable attorneys’ fees incurred in connection therewith, and any real estate 

  

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commission paid or payable. As used in subparts (i) and (ii) above, the “worth at the time of the award” is computed by allowing interest on unpaid
amounts at the rate of fifteen percent (15%) per annum, or such lesser amount as may then be the maximum lawful rate. As used in subpart (iii) above, the “worth at the time of the award” is computed by discounting such amount at the
discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus one percent (1%). If Tenant has abandoned the Property, Landlord shall have the option of (i) retaking possession of the Property and recovering from Tenant
the amount specified in this Paragraph 10.03(a), or (ii) proceeding under Paragraph 10.03(b); 
  
 (b) Maintain Tenant’s right to possession, in which case this Lease shall continue in effect whether or not Tenant has abandoned the Property. In such event, Landlord shall be entitled to enforce all of
Landlord’s rights and remedies under this Lease, including the right to recover the rent as it becomes due; 
  
 (c) Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the state in which the Property is located.

  
 Section 10.04. Repayment of “Free” Rent. If
this Lease provides for a postponement of any monthly rental payments, a period of “free” rent or other rent concession, such postponed rent or “free” rent is called the “Abated Rent.” Tenant shall be credited with
having paid all of the Abated Rent on the expiration of the Lease Term only if Tenant has fully, faithfully, and punctually performed all of Tenant’s obligations hereunder, including the payment of all rent (other than the Abated Rent) and all
other monetary obligations and the surrender of the Property in the physical condition required by this Lease. Tenant acknowledges that its right to receive credit for the Abated Rent is absolutely conditioned upon Tenant’s full, faithful and
punctual performance of its obligations under this Lease. If Tenant defaults and does not cure within any applicable grace period, the Abated Rent shall immediately become due and payable in full and this Lease shall be enforced as if there were no
such rent abatement or other rent concession. In such case Abated Rent shall be calculated based on the full initial rent payable under this Lease. 
  
 Section 10.05. Automatic Termination. Notwithstanding any other term or provision hereof to the contrary, the Lease shall terminate on the
occurrence of any act which affirms the Landlord’s intention to terminate the Lease as provided in Section 10.03 hereof, including the filing of an unlawful detainer action against Tenant. On such termination, Landlord’s damages for
default shall include all costs and fees, including reasonable attorneys’ fees that Landlord incurs in connection with the filing, commencement, pursuing and/or defending of any action in any bankruptcy court or other court with respect to the
Lease; the obtaining of relief from any stay in bankruptcy restraining any action to evict Tennant; or the pursuing of any action with respect to Landlord’s right to possession of the Property. All such damages suffered (apart from Base Rent
and other rent payable hereunder) shall constitute pecuniary damages which must be reimbursed to Landlord prior to assumption of the Lease by Tenant or any successor to Tenant in any bankruptcy or other proceeding. 
  
 Section 10.06. Cumulative Remedies. Landlord’s exercise of any
right or remedy shall not prevent it from exercising any other right or remedy. 
  

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 ARTICLE ELEVEN: PROTECTION OF LENDERS 
  
 Section 11.01. Subordination. Landlord shall have the right to
subordinate this Lease to any ground lease, deed of trust or mortgage encumbering the Property, any advances made on the security thereof and any renewals, modifications, consolidations, replacements or extensions thereof, whenever made or recorded.
Tenant shall cooperate with Landlord and any lender which is acquiring a security interest in the Property or the Lease. Tenant shall execute such further documents and assurances as such lender may require, provided that Tenant’s obligations
under this Lease shall not be increased in any material way (the performance of ministerial acts shall not be deemed material), and Tenant shall not be deprived of its rights under this Lease. Tenant’s right to quiet possession of the Property
during the Lease Term shall not be disturbed if Tenant pays the rent and performs all of Tenant’s obligations under this Lease and is not otherwise in default. If any ground lessor, beneficiary or mortgagee elects to have this Lease prior to
the lien of its ground lease, deed of trust or mortgage and gives written notice thereof to Tenant, this Lease shall be deemed prior to such ground lease, deed of trust or mortgage whether this Lease is dated prior or subsequent to the date of said
ground lease, deed of trust or mortgage or the date of recording thereof. 
  
 Section 11.02. Attornment. If Landlord’s interest in the Property is acquired by any ground lessor, beneficiary under a deed of trust, mortgagee, or purchaser at a foreclosure sale, Tenant shall attorn to
the transferee of or successor to Landlord’s interest in the Property and recognize such transferee or successor as Landlord under this Lease. Tenant waives the protection of any statute or rule of law which gives or purports to give Tenant any
right to terminate this Lease or surrender possession of the Property upon the transfer of Landlord’s interest. 
  
 Section 11.03. Signing of Documents. Tenant shall sign and deliver any instrument or documents necessary or appropriate to evidence any such
attornment or subordination or agreement to do so. If Tenant fails to do so within ten (10) days after written request, Tenant hereby makes, constitutes and irrevocably appoints Landlord, or any transferee or successor of Landlord, the
attorney-in-fact of Tenant to execute and deliver any such instrument or document. 
  
 Section 11.04. Estoppel Certificates. 
  
 (a) Upon Landlord’s written request, Tenant shall execute, acknowledge and deliver to Landlord a written statement certifying: (i) that none of the terms or provisions of this Lease have been changed (or if they
have been changed, stating how they have been changed); (ii) that this Lease has not been canceled or terminated; (iii) the last date of payment of the Base Rent and other charges and the time period covered by such payment; (iv) that Landlord is
not in default under this Lease (or, if Landlord is claimed to be in default, stating why); and (v) such other representations or information with respect to Tenant or the Lease as Landlord may reasonably request or which any prospective purchaser
or encumbrancer of the Property may require. Tenant shall deliver such statement to Landlord within ten (10) days after Landlord’s request. Landlord may give any such statement by Tenant to any prospective purchaser or encumbrancer of the
Property. Such purchaser or encumbrancer may rely conclusively upon such statement as true and correct. 
  

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 (b) If Tenant does not deliver such statement to Landlord within such ten (10) -day period, Landlord, and
any prospective purchaser or encumbrancer, may conclusively presume and rely upon the following facts: (i) that the terms and provisions of this Lease have not been changed except as otherwise represented by Landlord; (ii) that this Lease has not
been canceled or terminated except as otherwise represented by Landlord; (iii) that not more than one month’s Base Rent or other charges have been paid in advance; and (iv) that Landlord is not in default under the Lease. In such event, Tenant
shall be estopped from denying the truth of such facts. 
  
 Section 11.05. Tenant’s Financial Condition. Within ten (10) days after written request from landlord, Tenant shall deliver to Landlord such financial statements as Landlord reasonably requires to verify the net worth of Tenant
or any assignee, subtenant, or guarantor of Tenant. In addition, Tenant shall deliver to any lender designated by landlord any financial statements required by such lender to facilitate the financing or refinancing of the Property. Tenant represents
and warrants to Landlord that each such financial statement is a true and accurate statement as of the date of such statement. All financial statements shall be confidential and shall be used only for the purposes set forth in this Lease.

  
 ARTICLE TWELVE: LEGAL COSTS

  
 Section 12.01. Legal Proceedings. If Tenant or Landlord
shall be in breach or default under this Lease, such party (the “Defaulting Party”) shall reimburse the other party (the “Nondefaulting Party”) upon demand for any costs or expenses that the Nondefaulting Party incurs in
connection with any breach or default of the Defaulting Party under this Lease, whether or not suit is commenced or judgment entered. Such costs shall include legal fees and costs incurred for the negotiation of a settlement, enforcement of rights
or otherwise. Furthermore, if any action for breach of or to enforce the provisions of this Lease is commenced, the court in such action shall award to the party in whose favor a judgment is entered, a reasonable sum as attorneys’ fees and
costs. The losing party in such action shall pay such attorneys’ fees and costs. Tenant shall also indemnify Landlord against and hold Landlord harmless from all costs, expenses, demands and liability Landlord may incur if Landlord becomes or
is made a party to any claim or action (a) instituted by Tenant against any third party, or by any third party against Tenant, or by or against any person holding any interest under or using the Property by license of or agreement with Tenant; (b)
for foreclosure of any lien for labor or material furnished to or for Tenant or such other person; (c) otherwise arising out of or resulting from any act or transaction of Tenant or such other person; or (d) necessary to protect Landlord’s
interest under this Lease in a bankruptcy proceeding, or other proceeding under Title 11 of the United States Code, as amended. Tenant shall defend Landlord against any such claim or action at Tenant’s expense with counsel reasonably acceptable
to Landlord or, at Landlord’s election, Tenant shall reimburse Landlord for any legal fees or costs Landlord incurs in any such claim or action. 
  
 Section 12.02. Landlord’s Consent. Tenant shall pay Landlord’s reasonable attorneys’ fees incurred in connection with Tenant’s
request for Landlord’s consent under Article Nine (Assignment and Subletting), or in connection with any other act which Tenant proposes to do and which requires Landlord’s consent. 
  

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 ARTICLE THIRTEEN: MISCELLANEOUS PROVISIONS 
  
 Section 13.01. Non-Discrimination. Tenant promises, and it is a
condition to the continuance of this Lease, that there will be no discrimination against, or segregation of, any person or group of persons on the basis of race, color, sex, creed, national origin or ancestry in the leasing, subleasing,
transferring, occupancy, tenure or use of the Property or any portion thereof. 
  
 Section 13.02. Landlord’s Liability; Certain Duties. 
  
 (a) As used in this Lease, the term “Landlord” means only the current owner or owners of the fee title to the Property or Project or the
leasehold estate under a ground lease of the Property or Project at the time in question. Each Landlord is obligated to perform the obligations of Landlord under this Lease only during the time such Landlord owns such interest or title. Any Landlord
who transfers its title or interest is relieved of all liability with respect to the obligations of Landlord under this Lease to be performed on or after the date of transfer. However, each Landlord shall deliver to its transferee all funds that
Tenant previously paid if such funds have not yet been applied under the terms of this Lease. 
  
 (b) Tenant shall give written notice of any failure by Landlord to perform any of its obligations under this Lease to Landlord and to any ground lessor, mortgagee or beneficiary under any deed of trust encumbering the
Property whose name and address have been furnished to Tenant in writing. Landlord shall not be in default under this Lease unless Landlord (or such ground lessor, mortgagee or beneficiary) fails to cure such non-performance within thirty (30) days
after receipt of Tenant’s notice. However, if such non-performance reasonably requires more than thirty (30) days to cure, Landlord shall not be in default if such cure is commenced within such thirty (30) –day period and thereafter
diligently pursued to completion. 
  
 (c) Notwithstanding any term
or provision herein to the contrary, the liability of Landlord for the performance of its duties and obligations under this Lease is limited to Landlord’s interest in the Property and the Project, and neither the Landlord nor its partners,
shareholders, officers or other principals shall have any personal liability under this Lease. 
  
 Section 13.03. Severability. A determination by a court of competent jurisdiction that any provision of this Lease or any part thereof is illegal or unenforceable shall not cancel or invalidate the remainder of
such provision or this Lease, which shall remain in full force and effect. 
  
 Section 13.04. Interpretation. The captions of the Articles or Sections of this Lease are to assist the parties in reading this Lease and are not a part of the terms or provisions of this Lease. Whenever
required by the context of this Lease, the singular shall include the plural and the plural shall include the singular. The masculine, feminine and neuter genders shall each include the other. In any provision relating to the conduct, acts or
omissions of Tenant, the term “Tenant” shall include Tenant’s agents, employees, contractors, invitees, successors or others using the Property with Tenant’s expressed or implied permission. 
  

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 Section 13.05. Incorporation of Prior Agreements; Modifications. This Lease is the only agreement
between the parties pertaining to the lease of the Property and no other agreements are effective. All amendments to this Lease shall be in writing and signed by all parties. Any other attempted amendment shall be void. 
  
 Section 13.06. Notices. All notices required or permitted under this
Lease shall be in writing and shall be personally delivered or sent by certified mail, return receipt requested, postage prepaid. Notices to Tenant shall be delivered to the address specified in Section 1.03 above, except that upon Tenant’s
taking possession of the Property, the Property shall be Tenant’s address for notice purposes. Notices to Landlord shall be delivered to the address specified in Section 1.02 above. All notices shall be effective upon delivery. Either party may
change its notice address upon written notice to the other party. 
  
 Section 13.07. Waivers. All waivers must be in writing and signed by the waiving party. Landlord’s failure to enforce any provision of this Lease or its acceptance of rent shall not be a waiver and shall not prevent Landlord
from enforcing that provision or any other provision of this Lease in the future. No statement on a payment check from Tenant or in a letter accompanying a payment check shall be binding on Landlord. Landlord may, with or without notice to Tenant,
negotiate such check without being bound to the conditions of such statement. 
  
 Section 13.08. No Recordation. Tenant shall not record this Lease without prior written consent from Landlord. However, either Landlord or Tenant may require that a “Short Form” memorandum of this
Lease executed by both parties be recorded. The party requiring such recording shall pay all transfer taxes and recording fees. 
  
 Section 13.09. Binding Effect; Choice of Law. This Lease binds any party who legally acquires any rights or interest in this Lease from Landlord or
Tenant. However, Landlord shall have no obligation to Tenant’s successor unless the rights or interests of Tenant’s successor are acquired in accordance with the terms of this Lease. The laws of the state in which the Property is located
shall govern this Lease. 
  
 Section 13.10. Corporate
Authority; Partnership Authority. If Tenant is a corporation, each person signing this Lease on behalf of Tenant represents and warrants that he has full authority to do so and that this Lease binds the corporation. Within thirty (30) days after
this Lease is signed, Tenant shall deliver to Landlord a certified copy of a resolution of Tenant’s Board of Directors authorizing the execution of this Lease or other evidence of such authority reasonably acceptable to Landlord. If Tenant is a
partnership, each person or entity signing this Lease for Tenant represents and warrants that he or it is a general partner of the partnership, that he or it has full authority to sign for the partnership and that this Lease binds the partnership
and all general partners of the partnership. Tenant shall give written notice to Landlord of any general partner’s withdrawal or addition. Within thirty (30) days after this Lease is signed, Tenant shall deliver to Landlord a copy of
Tenant’s recorded statement of partnership or certificate of limited partnership. 
  
 Section 13.11. Joint and Several Liability. All parties signing this Lease as Tenant shall be jointly and severally liable for all obligations of Tenant. 
  

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 Section 13.12. Force Majeure. If Landlord cannot perform any of its obligations due to events
beyond Landlord’s control, the time provided for performing such obligations shall be extended by a period of time equal to the duration of such events. Events beyond Landlord’s control include, but are not limited to, acts of God, war,
civil commotion, labor disputes, strikes, fire, flood or other casualty, shortages of labor or material, government regulation or restriction and weather conditions. 
  
 Section 13.13. Execution of Lease. This Lease may be executed in counterparts and, when all counterpart documents are
executed, the counterparts shall constitute a single binding instrument. Landlord’s delivery of this Lease to Tenant shall not be deemed to be an offer to lease and shall not be binding upon either party until executed and delivered by both
parties. 
  
 Section 13.14. Survival. All representations
and warranties of Landlord and Tenant shall survive the termination of this Lease. 
  
 ARTICLE FOURTEEN: BROKERS 
  
 Section 14.01. Broker’s Fee. Intentionally left blank. 
  
 Section 14.02. Protection of Brokers. Intentionally left blank. 
  
 Section 14.03. Broker’s Disclosure of Agency. Intentionally left
blank. 
  
 Section 14.04. No Other Brokers. Tenant
represents and warrants to Landlord that there are no brokers, finders or other parties with whom Tenant has dealt who are or may be entitled to any commission or fee with respect to this Lease or the Property. 
  
 ADDITIONAL PROVISIONS MAY BE SET FORTH IN A RIDER OR RIDERS ATTACHED HERETO
OR IN THE BLANK SPACE BELOW. IF NO ADDITIONAL PROVISIONS ARE INSERTED, PLEASE DRAW A LINE THROUGH THE SPACE BELOW. 
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	 	 	23	 	Initials
                            
	 	 	 	 	______________

 Landlord and Tenant have signed this Lease at the place and on the dates specified adjacent to their
signatures below and have initialed all Riders which are attached to or incorporated by reference in this Lease. 
  

	 	  	“LANDLORD”
		
	 Signed on July 15, 2002
 at Grass Valley, California
	  	 Johnson Family Trust

			
	 	  	 By:
	  	  

		
	 	  	 Its:  Co-Trustee

	 	  	“TENANT”
		
	 Signed on July 12, 2002
	  	  

		
	 at
                                        
                
	  	  

			
	 	  	 By:
	  	 /s/    JOHN R.
TUTTLE        

			
	 	  	 Its:
	  	 President

			
	 	  	 By:
	  	  

			
	 	  	 Its:
	  	 Director

  
 IN ANY REAL ESTATE
TRANSACTION, IT IS RECOMMENDED THAT YOU CONSULT WITH A PROFESSIONAL, SUCH AS A CIVIL ENGINEER, INDUSTRIAL HYGIENIST OR OTHER PERSON WITH EXPERIENCE IN EVALUATING THE CONDITION OF THE PROPERTY, INCLUDING THE POSSIBLE PRESENCE OF ASBESTOS, HAZARDOUS
MATERIALS AND UNDERGROUND STORAGE TANKS. 
  

	 	 	24	 	Initials
                            
	 	 	 	 	______________

 ADDENDA TO LEASE 
  
 Further terms and conditions to that certain Lease, dated July 8, 2002 by and between Johnson Family Trust, Landlord and Daystar
Technologies, Inc., a Delaware corporation, Tenant. 
  
 THE PARTIES FURTHER AGREE AS FOLLOWS: 
  
 15. ALTERATIONS. Landlord or
its contractor shall have the right to inspect any alterations made by Tenant to verify that Tenant has complied with all applicable building codes and other legal requirements. Tenant shall promptly perform all reasonably necessary work requested
by Landlord for the purpose of such compliance. If Tenant fails to perform such work, Landlord may perform such work and charge Tenant the cost thereof. 
  
 16. SECURITY MEASURES. Tenant assumes full responsibility for protecting the Premises from theft, robbery and pilferage, at all times. Tenant shall keep the doors and
other means of entry to the Premises closed, locked and secured during non-business hours. Tenant shall not alter any lock or install any new or additional locks or any bolts on any door of the Premises without the prior written consent of Landlord.

  
 17. STORAGE. Tenant agrees that there shall be no goods or materials assembled
at any time outside of the unit at the front, rear or side of the building, nor shall Tenant use driveways, parking spaces, trash enclosure areas, or paved or landscaped areas for temporary or permanent storage. 
  
 18. ENVIRONMENTAL COMPLIANCE. Tenant represents, warrants and covenants that it shall at no
time use, or permit the Premises to be used, in violation of any federal, state or local law, ordinance or regulation relating to the environmental conditions on, under or about the Premises, including, but not limited to, soil and ground water
conditions, and Tenant agrees to assume sole and full responsibility and cost to remedy any such violations caused by Tenant that may affect the Premises. Tenant further represents, warrants and covenants that it shall at no time, allow or permit
any third party to use, generate, store or dispose of on, under, or about the Premises, or transport to or from the Premises any hazardous wastes, toxic substances or related materials (“Hazardous Materials”). For the purposes of this
Required Compliance, Hazardous Materials shall include, but not be limited to, substance defined as “hazardous substances” or “toxic substances” in Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq., Hazardous
Materials Transportation Act, 49 U.S.C. Section 1802; and Resource Conservation Recovery Act, 42 U.S.C. Section 9601, et seq.; and those substances defined as “hazardous wastes” in the Health and Safety Codes of the State in which the
Premises are located, and in the regulations adopted and publications promulgated pursuant to said laws. Tenant represents, warrants and covenants that it shall provide Landlord with written notification immediately upon the discovery or notice by
Tenant, its successors, assigns, licensees, invitees, employees, agents, partners or any other third party, that any representation, warranty, or covenant of Lessee under this section is inaccurate, incomplete, or untrue in any way. 
  

	 	 	1	 	Initials
                            
	 	 	 	 	______________

 Addenda to Lease (Continued) 
 July 8, 2002 
 Page 2 
  
 19. EMERGENCY ACCESS. In the event Landlord or its authorized representative, agent, or employee, including without limitation any fire protection or public safety
official, requires emergency access to the Premises, Tenant shall indemnify and hold Landlord harmless from any costs and expenses incurred in gaining such access and repairing any damage caused in gaining such access to the Premises if
Tenant’s set of keys is not immediately available. 
  
 20. SIGNAGE. Tenant
shall comply with Landlord’s current sign program for the project. Tenant, at Tenant’s expense, shall be allowed to place a standardized identification sign on the existing monument sign at the street. Tenant shall also be allowed to place
a sign approved by Landlord at its entry. No other signage visible from the outside of the building is allowed. 
  
 21. DELIVERY OF PREMISES. Landlord shall deliver Premises to Tenant with new office carpet, freshly painted walls, and all mechanical, electrical, plumbing systems
including HVAC shall be in good working condition. 
  
 22. EXTENSION OPTION.
Landlord grants Tenant one option to renew the Lease for an additional three (3) years, subject to Tenant providing Landlord with not less than 120 days prior written notice. The base rent for the option term shall be increased by a factor of the
Consumer Price Index, Western States Index, at the beginning of the first and second year of the option term over the base rent of the previous year. 
  
 23. RIGHT OF FIRST REFUSAL. During the first year of the Lease, Landlord grants Tenant a right of first refusal for Unit B. Upon receipt of a bona fide offer to lease
Unit B from a prospective tenant (“Prospect”), Landlord shall give Tenant two (2) business days to execute a lease for Unit B under the same terms and conditions as agreed to by Prospect and Landlord. 
  

	 LANDLORD:
	 	 TENANT:

		
	 Johnson Family Trust
	 	 Daystar Technologies, Inc., a Delaware
 corporation

				
	 By:
	 	  

	 	 By:
  
	 	 /s/    JOHN R. TUTTLE

	 	 	 its Co-trustee
	 	 	 	 its

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