Document:

Lease Agreement dated January 2, 2000

 Exhibit 10.16 
 [LOGO] 
 AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION 
 STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE — NET 
 (DO NOT USE THIS FORM
FOR MULTI-TENANT BUILDINGS) 
 1. BASIC PROVISIONS (“BASIC PROVISIONS”) 
 1.1 PARTIES: This Lease (“LEASE”), dated for reference purposes only January 2, 2000, is made by and between KRDS, INC., a California
corporation (“LESSOR”) and LITRONIC INC. a Delaware corporation (“LESSEE”), (collectively the “PARTIES,” or individually a “PARTY”). 
 1.2 PREMISES: That certain real property, including all improvements therein or to be provided by Lessor under the terms of this Lease, and commonly
known as 17861 Cartwright, Irvine, located in the County of Orange, State of California, and generally described as (describe briefly the nature of the property and, if applicable, the “PROJECT”, if the property is located within a
Project) approximately 20,702 square foot office, research and development building on approximately 1.73 acres. (“PREMISES”). (See also Paragraph 2) 
 1.3 TERM: Seven (7) years and no (0) months (“ORIGINAL TERM”) commencing February 1, 2000 (“COMMENCEMENT DATE”) and ending February 28, 2007 (“EXPIRATION DATE”). (See
also Paragraph 3) 
  

	 	1.4	EARLY POSSESSION:                      (“EARLY POSSESSION
DATE”). (See also Paragraphs 3.2 and 3.3) 

 1.5 BASE RENT: $ SEE ADDENDUM per month (“BASE RENT”), payable on
the first (1st) day of each month commencing February 1, 2000. (See also Paragraph 4) 
  

	[X]	If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. 

 1.6 BASE RENT PAID UPON EXECUTION: $31,674.06 as Base Rent for the period February 1, 2000 through February 29, 2000 
 1.7 SECURITY DEPOSIT: $31,674.06 (“SECURITY DEPOSIT”). (See also Paragraph 5) 

 1.8 AGREED USE: Any lawful use. (See also Paragraph 6) 
 1.9 INSURING PARTY: Lessee is the “INSURING PARTY” unless otherwise stated herein. (See also Paragraph 8) 
 1.11 GUARANTOR. The obligations of the Lessee under this Lease are to be guaranteed by N/A (“GUARANTOR”). (See also Paragraph 37) 

1.12 ADDENDA AND EXHIBITS. Attached hereto is an Addendum or Addenda consisting of Paragraphs
             through              and Exhibits
                                        
                            , all of which constitute a part of this Lease. 
 2. PREMISES. 
 2.1 LETTING. Lessor hereby leases to Lessee,
and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of size set forth in this Lease, or that
may have been used in calculating rental, is an approximation which the Parties agree is reasonable and the rental based thereon is not subject to revision whether or not the actual size is more or less. 
 2.2 CONDITION. Lessor shall deliver the Premises to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date,
whichever first occurs (“START DATE”), and, so long as the required service contracts described in Paragraph 7.1(b) below are obtained by Lessee within thirty (30) days following the Start Date, warrants that the existing electrical,
plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems (“HVAC”), loading doors, if any, and all other such elements in the Premises, other than those constructed by Lessee, shall be in good operating
condition on said date and that the structural elements of the roof, bearing walls and foundation of any buildings on the Premises (the “BUILDING”) shall be free of material defects. If a non-compliance with said warranty exists as of the
Start Date, Lessor shall, as Lessor’s sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such
non-compliance, rectify same at Lessor’s expense. If, after the Start Date, Lessee does not give Lessor written notice of any non-compliance with this warranty within: 
  

	1	(i) one (1) year as to all tenant improvement work constructed by Lessor on behalf of Lessee prior to the commencement of the Term; and (ii) forty-five (45) days
as to the remaining systems and other elements of the Building, correction of such non-compliance shall be the obligation of Lessee at Lessee’s sole cost and expense. 

 2.3 COMPLIANCE. Lessor warrants that the improvements on the Premises comply with all applicable laws,
covenants or restrictions of record, building codes, regulations and ordinances (“APPLICABLE REQUIREMENTS”) in effect on the Start Date. Said warranty does not apply to the use to which Lessee will put the Premises or to any Alterations or
Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for determining whether or not the zoning is appropriate for Lessee’s intended use, and acknowledges that past uses of the Premises
may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance,
rectify the same at Lessor’s expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty within forty-five (45) days following the Start Date, correction of that non-compliance shall be the obligation of
Lessee at Lessee’s sole cost and expense. If the Applicable Requirements are hereafter changed (as opposed to being in existence at the Start Date, which is addressed in Paragraph 6.2(e) below) so as to require during the term of this Lease the
construction of an addition to or an alteration of the Building, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Building (“CAPITAL EXPENDITURE”), Lessor and Lessee shall allocate the
cost of such work as follows: 
 (a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result
of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however that if such Capital Expenditure is required during the last two
(2) years of this Lease and the cost thereof exceeds six (6) months’ Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within ten (10) days after receipt of Lessee’s termination
notice that Lessor has elected to pay the difference between the actual cost thereof and the amount equal to six (6) months’ Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires
such Capital Expenditure and deliver to Lessor written notice specifying a termination date at least ninety (90) days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize
the Premises without commencing such Capital Expenditure. 
 (b) If such Capital Expenditure is not the result of the specific
and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor and Lessee shall allocate the obligation to pay for such costs pursuant to the provisions of Paragraph 7.1(c); provided, however, that if
such Capital Expenditure is required during the last two years of this Lease or if Lessor reasonably determines that it is not economically 

 
feasible to pay its share thereof, Lessor shall have the option to terminate this Lease upon ninety (90) days prior written notice to Lessee unless
Lessee notifies Lessor, in writing, within ten (10) days after receipt of Lessor’s termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its share of any such
Capital Expenditure, Lessee may advance such funds and deduct same, with Interest, from Rent until Lessor’s share of such costs have been fully paid. If Lessee is unable to finance Lessor’s share, or if the balance of the Rent due and
payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate this Lease upon thirty (30) days written notice to Lessor. 
 (c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected, and
new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modification to the Premises then, and in that event, Lessee shall be fully
responsible for the cost thereof, and Lessee shall not have any right to terminate this Lease. 
 2.3(d) Lessee acknowledges
that as of the execution of the Lease it will have had an adequate opportunity to inspect the Premises and to investigate its physical characteristics and conditions. Except as expressly provided in this Section 2.3, as of the execution of the
Lease, Lessee shall be deemed to have waived any and all objections to the physical characteristics and conditions of the Premises which would be disclosed by a reasonable and diligent inspection. Lessee acknowledges that, except as specifically
provided herein, neither Lessor nor any of its employees, agents, or representatives has made any representations, warranties or agreements to or with Lessee on behalf of Lessor as to any matters concerning the Premises, the present use thereof, or
the suitability of Lessee’s intended use of the Premises, and that Lessee accepts the Premises in their AS-IS condition. 
 Without
limiting the generality of the foregoing, Lessee understands and agrees that it leases the Premises without any representations or warranties by Lessor, or by any official, employee or agent of Lessor, regarding the existence, use, generation,
manufacture, storage, transportation, release or disposal of Hazardous Substances and/or oil wells and/or underground storage tanks and/or pipelines on, under or about the Premises, or regarding that the Premises is or may be in violation of any
federal, state or local law, ordinance or regulation relating to Hazardous Substances and/or oil wells and/or underground storage tanks and/or pipelines on, under or about the Premises including, without limitation, soil and ground water conditions.
Lessee acknowledges and understands that it must perform its own “due diligence” with respect to all environmental matters relating to the Premises, inclusive of any environmental audits or assessments, and that Lessee is not relying on
any environmental audits or assessments performed by or on behalf of Lessor. 

 Lessee acknowledges that (i) asbestos containing materials (“ACMs”) are or were present in
the mastic binding portions of the tile in the Building; (ii) ACMs are or were present in a portion of the tiles in the Building; (iii) there exists wear, settling and cracking conditions in the slab underlying the Building; (iv) the
Building may not be currently in compliance with the requirements of the Americans with Disabilities Act; and (v) a Southern California Edison transformer located on the Premises previously leaked oil. Without limiting any of the foregoing
provisions in this Section, Lessee acknowledges Lessor’s disclosures and agrees that Lessee shall take subject to all such defects, assumes all loss with respect thereto and is not relying on any information or warranties of Lessor with respect
thereto, but will conduct its own investigation regarding same. 
 2.4 ACKNOWLEDGEMENTS. Lessee acknowledges that: (a) it has been
advised by Lessor and/or Brokers to satisfy itself with respect to the condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable
Requirements), and their suitability for Lessee’s intended use; (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the
Premises; and (c) neither Lessor, Lessor’s agents, nor any Broker has made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that:
(a) Broker has made no representations, promises or warranties concerning Lessee’s ability to honor the Lease or suitability to occupy the Premises, and (b) it is Lessor’s sole responsibility to investigate the financial
capability and/or suitability of all proposed tenants. 
 2.5 LESSEE AS PRIOR OWNER/OCCUPANT. The warranties made by Lessor in Paragraph 2
shall be of no force or effect if immediately prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work. 
 3. TERM. 
 3.1 TERM. The Commencement Date, Expiration Date
and Original Term of this Lease are as specified in Paragraph 1.3. 
 3.2 EARLY POSSESSION. If Lessee totally or partially occupies the
Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early possession. All other terms of this Lease (including but not limited to the obligations to pay Real Property Taxes and insurance
premiums and to maintain the Premises) shall, however, be in effect during such period. Any such early possession shall not affect the Expiration Date. 

 3.3 DELAY IN POSSESSION. Lessor agrees to use its best commercially reasonable efforts to deliver
possession of the Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession as agreed, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this
Lease. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until it receives possession of the Premises. If possession is not delivered within sixty (60) days after the Commencement Date, Lessee may, at its
option, by notice in writing within ten (10) days after the end of such sixty (60) day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by
Lessor within said ten (10) day period, Lessee’s right to cancel shall terminate. Except as otherwise provided, if possession is not tendered to Lessee by the Start Date and Lessee does not terminate this Lease, as aforesaid, any period of
rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the
acts or omissions of Lessee. If possession of the Premises is not delivered within four (4) months after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing. 
 3.4 LESSEE COMPLIANCE. Lessor shall not be required to tender possession of the Premises to Lessee until Lessee complies with its obligation to provide
evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor’s
election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold
possession until such conditions are satisfied. 
 4. RENT. 
 4.1. RENT DEFINED. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be rent (“RENT”). 
 4.2 PAYMENT. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States, without offset or deduction (except as
specifically permitted in this Lease), on or before the day on which it is due. Rent for any period during the term hereof which is for less than one (1) full calendar month shall be prorated based upon the actual number of days of 

 
said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate
in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor’s rights to the balance of such Rent, regardless of Lessor’s endorsement of any check so stating. 
 5. SECURITY DEPOSIT. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee’s faithful performance of its obligations
under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or compensate Lessor for any
liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of said Security Deposit, Lessee shall within ten (10) days after written request therefor deposit monies with
Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within fourteen (14) days after the expiration or
termination of this Lease, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be
paid by Lessee under this Lease. 
 6. USE. 
 6.1 USE. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is
unlawful, creates damage, waste or a nuisance, or that disturbs owners and/or occupants of, or causes damage to neighboring properties. Lessor shall not unreasonably withhold or delay its consent to any written request for a modification of the
Agreed Use, so long as the same will not impair the structural integrity of the improvements on the Premises or the mechanical or electrical systems therein, is not significantly more burdensome to the Premises. If Lessor elects to withhold consent,
Lessor shall within five (5) business days after such request give written notification of same, which notice shall include an explanation of Lessor’s objections to the change in use. 
 6.2 HAZARDOUS SUBSTANCES. 
 (a) REPORTABLE USES REQUIRE CONSENT. The term “HAZARDOUS SUBSTANCE” as used in this Lease shall mean any product, substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in
combination with other materials expected to be on the Premises, is either: (i) regulated or monitored by any governmental authority, or (ii) a basis for potential liability of Lessor to any governmental agency or third 

 
party under any applicable statute or common law theory. Hazardous Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or
crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without the express prior written consent of Lessor and timely
compliance (at Lessee’s expense) with all Applicable Requirements. “REPORTABLE USE” shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use,
transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority in violation of any Applicable
Requirements. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, so long as such use is in compliance with all Applicable Requirements, is not a
Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving
such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal
on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security Deposit. 
 (b) DUTY TO INFORM LESSOR. If Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises in violation of any Applicable Requirements other
than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous
Substance. 
 (c) LESSEE REMEDIATION. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in,
on, under, or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee’s expense, take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or
required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous
Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party. 
 (d) LESSEE
INDEMNIFICATION. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents and/or damages, liabilities, 

 
judgments, claims, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto the
Premises by or for Lessee, or any third party (provided, however, that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties). Lessee’s
obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and
shall survive the expiration or termination of this Lease. NO TERMINATION, CANCELLATION OR RELEASE AGREEMENT ENTERED INTO BY LESSOR AND LESSEE SHALL RELEASE LESSEE FROM ITS OBLIGATIONS UNDER THIS LEASE WITH RESPECT TO HAZARDOUS SUBSTANCES, UNLESS
SPECIFICALLY SO AGREED BY LESSOR IN WRITING AT THE TIME OF SUCH AGREEMENT. 
 (e) LESSOR INDEMNIFICATION. Lessor and its
successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which existed as a result of Hazardous Substances
on the Premises prior to the Start Date or which are caused by Lessor, its agents or employees. Lessor’s obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal,
remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. 
 (f)
INVESTIGATIONS AND REMEDIATIONS. Lessor shall retain the responsibility and pay for any investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the
Premises prior to the Start Date, unless such remediation measure is required as a result of Lessee’s use (including “Alterations”, as defined in Paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for
such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor’s agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor’s
investigative and remedial responsibilities. 
 (g) LESSOR TERMINATION OPTION. If a Hazardous Substance Condition occurs
during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect,
but subject to Lessor’s rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor’s option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at
Lessor’s expense, in which event this Lease shall continue in full 

 
force and effect, or (ii) if the estimated cost to remediate such condition exceeds twelve (12) times the then monthly Base Rent or $100,000,
whichever is greater, give written notice to Lessee, within thirty (30) days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor’s desire to terminate this Lease as of the date sixty
(60) days following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within ten (10) days thereafter, give written notice to Lessor of Lessee’s commitment to pay the amount by which the
cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to twelve (12) times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance
thereof within thirty (30) days following such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are
available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor’s notice of termination. 
 6.3 LESSEE’S COMPLIANCE WITH APPLICABLE REQUIREMENTS. Except as otherwise provided in this Lease, Lessee shall, at Lessee’s sole expense,
fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessor’s engineers and/or consultants which
relate in any manner to the Premises, without regard to whether said requirements are now in effect or become effective after the Start Date. Lessee shall, within ten (10) days after receipt of Lessor’s written request, provide Lessor with
copies of all permits and other documents, and other information evidencing Lessee’s compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents
involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements. 
 6.4 INSPECTION; COMPLIANCE. Lessor and Lessor’s “Lender” (as defined in Paragraph 30 below) and consultants shall have the right to enter
into Premises at any time upon written notice to Lessee in the case of an emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. Lessee may
require that all persons entering the Premises be escorted by Lessee’s personnel. 

 7. MAINTENANCE; REPAIRS, UTILITY INSTALLATIONS; TRADE FIXTURES AND ALTERATIONS. 
 7.1 LESSEE’S OBLIGATIONS. 
 (a) IN GENERAL. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee’s Compliance with Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee
shall, at Lessee’s sole expense, keep the Premises, Utility Installations, and Alterations in good order, condition and repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or
readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of Lessee’s use, any prior use, the elements or the age of such portion of the Premises), including, but not limited to, all equipment or facilities,
such as plumbing, heating, ventilating, air-conditioning, electrical, lighting facilities, boilers, pressure vessels, fire protection system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, floors, windows, doors, plate glass,
skylights, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good
maintenance practices, specifically including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee’s obligations shall include restorations, replacements or renewals when necessary to keep the
Premises and all improvements thereon or a part thereof in good order, condition and state of repair. Lessee shall, during the term of this Lease, keep the exterior appearance of the Building in a first-class condition consistent with the exterior
appearance of other similar facilities of comparable age and size in the vicinity, including, when necessary, the exterior repainting of the Building. 
 (b) SERVICE CONTRACTS. Lessee shall, at Lessee’s sole expense, procure and maintain contracts, with copies to Lessor, in customary form and substance for, and with contractors specializing and experienced in the
maintenance of the following equipment and improvements (“Basic Elements”), if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire extinguishing systems, including
fire alarm and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof covering and drains, (vi) driveways and parking lots, (vii) clarifiers (viii) basic utility feed to the perimeter of the Building, and
(ix) any other equipment, if reasonably required by Lessor. 
 (c) REPLACEMENT. Subject to Lessee’s indemnification
of Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee of liability resulting from Lessee’s failure to exercise and perform good maintenance practices, if the Basic Elements described in Paragraph 7.1(b) cannot be repaired
other than at a cost which is in excess of 50% of the cost of replacing such Basic Elements, then such Basic Elements shall be replaced by Lessor, and 

 
the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease,
on the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is the number of months of the useful life of such
replacement as such useful life is specified pursuant to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then commercially reasonable in the judgment of Lessor’s
accountants), with Lessee reserving the right to prepay its obligation at any time. 
 7.2 LESSOR’S OBLIGATIONS. Subject to the
provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the
equipment therein, all of which obligations are intended to be that of the Lessee. It is the intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises, and
they expressly waive the benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease. 
 7.3 UTILITY INSTALLATIONS; TRADE FIXTURES; ALTERATIONS. 
 (a) DEFINITIONS; CONSENT REQUIRED. The term “UTILITY
INSTALLATIONS” refers to all floor and window coverings, air lines, power panels, electrical distribution, security and fire protection systems, communication systems, lighting fixtures, HVAC equipment, plumbing, and fencing in or on the
Premises. The term “TRADE FIXTURES” shall mean Lessee’s machinery and equipment that can be removed without doing material damage to the Premises. The term “ALTERATIONS” shall mean any modification of the improvements, other
than Utility Installations or Trade Fixtures, whether by addition or deletion. “LESSEE OWNED ALTERATIONS AND/OR UTILITY INSTALLATIONS” are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor
pursuant to Paragraph 7.4(a). Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor’s prior written consent which shall not be unreasonably withheld. Lessee may, however, make non-structural Utility
Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or removing the roof or any existing walls,
and the cumulative cost thereof during this Lease as extended does not exceed $50,000 in the aggregate or $10,000 in any one year. 
 (b) CONSENT. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be 

 
presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee’s: (i) acquiring all applicable
governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a
prompt and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For
work which costs an amount equal to the greater of one month’s Base Rent, or $50,000, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to one and one-half times the estimated cost of such
Alteration or Utility Installation and/or upon Lessee’s posting an additional Security Deposit with Lessor. 
 (c)
INDEMNIFICATION. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic’s or
materialmen’s lien against the Premises or any interest therein. Lessee shall give Lessor not less than ten (10) days’ notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post
notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such
adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to one and one-half times the amount of such contested lien, claim or demand, indemnifying
Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessor’s attorneys’ fees and costs. 
 7.4 OWNERSHIP; REMOVAL; SURRENDER; AND RESTORATION. 
 (a) OWNERSHIP. All Alterations and
Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility
Installations. Unless otherwise instructed per Paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the
Premises. 
 (b) SURRENDER/RESTORATION. Lessee shall surrender the Premises by the Expiration Date or any earlier termination
date, with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. “Ordinary wear and tear” shall not include any
damage or deterioration that would have been prevented by good maintenance practice. Lessee shall repair 

 
any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee Owned Alterations and/or Utility Installations, furnishings, and
equipment as well as the removal of any storage tank installed by or for Lessee, and the removal, replacement, or remediation of any soil, material or groundwater contaminated by Lessee. Trade Fixtures shall remain the property of Lessee and shall
be removed by Lessee. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(b) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below. 
 8. INSURANCE; INDEMNITY. 
 8.1 PAYMENT FOR INSURANCE. Lessee
shall pay for all insurance required under Paragraph 8 except to the extent of the cost attributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. Premiums for policy periods commencing prior
to or extending beyond the Lease term shall be prorated to correspond to the Lease term. Payment shall be made by Lessee to Lessor within ten (10) days following receipt of an invoice. 
 8.2 LIABILITY INSURANCE. 
 (a) CARRIED BY LESSEE. Lessee shall obtain and keep in force a Commercial General Liability Policy of Insurance protecting Lessee and Lessor against claims for bodily injury, personal injury and property damage based upon or arising out of
the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $2,000,000 per occurrence with an
“ADDITIONAL INSURED — MANAGERS OR LESSORS OF PREMISES ENDORSEMENT” and contain the “AMENDMENT OF THE POLLUTION EXCLUSION ENDORSEMENT” for damage caused by heat, smoke or fumes from a hostile fire. The Policy shall not
contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an “insured contract” for the performance of Lessee’s indemnity obligations under
this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. All insurance carried by Lessee shall be primary to and not contributory with any similar insurance carried by
Lessor, whose insurance shall be considered excess insurance only. 
 (b) CARRIED BY LESSOR. Lessor may maintain liability
insurance as described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein. 

 8.3 PROPERTY INSURANCE — BUILDING, IMPROVEMENTS AND RENTAL VALUE. 
 (a) BUILDING AND IMPROVEMENTS. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor, with loss
payable to Lessor, any ground lessor, and to any Lender(s) insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full replacement cost of the Premises, as the same shall exist from time to time, or the amount
required by any Lenders, but in no event more than the commercially reasonable and available insurable value thereof. If Lessor is the Insuring Party, however, Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee’s
personal property shall be insured by Lessee under Paragraph 8.4 rather than by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (except the
perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the
Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual property
insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the
deductible amount shall not exceed $10,000 per occurrence, and Lessee shall be liable for such deductible amount in the event of an Insured Loss. 
 (b) RENTAL VALUE. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one (1) year. Said
insurance shall provide that in the event the Lease is terminated by reason of an insured loss, the period of indemnity for such coverage shall be extended beyond the date of the completion of repairs or replacement of the Premises, to provide for
one full year’s loss of Rent from the date of any such loss. Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent
otherwise payable by Lessee, for the next twelve (12) month period. Lessee shall be liable for any deductible amount in the event of such loss. 
 (c) ADJACENT PREMISES. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the
property insurance of such building or buildings if said increase is caused by Lessee’s acts, omissions, use or occupancy of the Premises. 

 8.4 LESSEE’S PROPERTY/BUSINESS INTERRUPTION INSURANCE. 
 (a) PROPERTY DAMAGE. Lessee shall obtain and maintain insurance coverage on all of Lessee’s personal property, Trade Fixtures, and
Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee shall provide Lessor with written evidence that such insurance is in force. 
 (b) BUSINESS INTERRUPTION. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee
for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such perils. 
 (c) NO REPRESENTATION OF ADEQUATE COVERAGE. Lessor makes no representation that the limits or forms of coverage of insurance specified
herein are adequate to cover Lessee’s property, business operations or obligations under this Lease. 
 8.5 INSURANCE POLICIES.
Insurance required herein shall be by companies duly licensed or admitted to transact business in the state where the Premises are located, and maintaining during the policy term a “General Policyholders Rating” of at least B+, V, as set
forth in the most current issue of “Best’s Insurance Guide”, or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall, prior
to the Start Date, deliver to Lessor certified copies of policies of such insurance or certificates evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject to modification except after thirty
(30) days prior written notice to Lessor. Lessee shall, at least thirty (30) days prior to the expiration of such policies, furnish Lessor with evidence of renewals or “insurance binders” evidencing renewal thereof, or Lessor may
order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less.
If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain the same. 
 8.6 WAIVER OF SUBROGATION. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their
entire right to recover damages against the other, for loss of or damage 

 
to its property arising out of or incident to the perils required to be insured against herein. The effect of such releases and waivers is not limited by the
amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as
the case may be, so long as the insurance is not invalidated thereby. 
 8.7 INDEMNITY. Except for Lessor’s gross negligence or willful
misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens,
judgments, penalties, attorneys’ and consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor
by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any
such claim in order to be defended or indemnified. 
 8.8 EXEMPTION OF LESSOR FROM LIABILITY. Except to the extent caused by the negligence
or willful misconduct of Lessor, Lessor shall not be liable for injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other person in or about the
Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting
fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the Building of which the Premises are a part, or from other sources or places. Lessor shall not be
liable for any damages arising from any act or neglect of any other tenant of Lessor. Notwithstanding Lessor’s negligence or breach of this Lease, Lessor shall under no circumstances be liable for injury to Lessee’s business or for any
loss of income or profit therefrom. 
 9. DAMAGE OR DESTRUCTION. 
 9.1 DEFINITIONS. 
 (a) “PREMISES PARTIAL DAMAGE” shall mean damage or destruction
to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in six (6) months or less from the date of the damage or destruction. 

 
Lessor shall notify Lessee in writing within thirty (30) days from the date of the damage or destruction as to whether or not the damage is Partial or
Total. 
 (b) “PREMISES TOTAL DESTRUCTION” shall mean damage or destruction to the Premises, other than Lessee Owned
Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in six (6) months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within thirty (30) days from the date
of the damage or destruction as to whether or not the damage is Partial or Total. 
 (c) “INSURED LOSS” shall mean
damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective
of any deductible amounts or coverage limits involved. 
 (d) “REPLACEMENT COST” shall mean the cost to repair or
rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without
deduction for depreciation. 
 (e) “HAZARDOUS SUBSTANCE CONDITION” shall mean the occurrence or discovery of a
condition involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises. 
 9.2 PARTIAL DAMAGE — INSURED LOSS. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor’s expense, repair such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and
Utility Installations) as soon as reasonably possible and this Lease shall continue in full force and effect; provided, however, that Lessee shall, at Lessor’s election, make the repair of any damage or destruction the total cost to repair of
which is $10,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance
proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds (except as to the deductible which is Lessee’s responsibility) as and when required to complete said repairs. In the event,
however, such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in
insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within ten (10) days following receipt of written notice of such shortage and
request therefor. If 

 
Lessor receives said funds or adequate assurance thereof within said ten (10) day period, the party responsible for making the repairs shall complete
them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within ten (10) days thereafter to: (i) make
such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and effect; or (ii) have this Lease terminate thirty (30) days thereafter. Lessee
shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some
insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party. 
 9.3
PARTIAL DAMAGE — UNINSURED LOSS. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee’s expense), Lessor may either:
(i) repair such damage as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within thirty (30) days
after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective sixty (60) days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within
ten (10) days after receipt of the termination notice to give written notice to Lessor of Lessee’s commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or
satisfactory assurance thereof within thirty (30) days after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the
required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice. 
 9.4 TOTAL DESTRUCTION. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate sixty (60) days following such Destruction. If the damage or destruction was
caused by the negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor’s damages from Lessee, except as provided in Paragraph 8.6. 
 9.5 DAMAGE NEAR END OF TERM. If at any time during the last six (6) months of this Lease there is damage for which the cost to repair exceeds one (1) month’s Base Rent, whether or not an Insured Loss, Lessor
may terminate this Lease effective sixty (60) days following the date of occurrence of such damage by giving a written termination notice to Lessee within thirty (30) days after the date of occurrence of such damage. Notwithstanding the
foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the 

 
Premises, then Lessee may preserve this Lease by, (a) exercising such option needed to make the repairs on or before the earlier of (i) the date
which is ten days after Lessee’s receipt of Lessor’s written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period to the
extent otherwise required by this Section 9, Lessor shall, at Lessor’s and/or Lessee’s, as applicable, commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and
effect. If Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee’s option shall be extinguished. 
 9.6 ABATEMENT OF RENT; LESSEE’S REMEDIES. 
 (a) ABATEMENT. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period
required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Lessee’s use of the Premises is impaired, but not to exceed the proceeds received from the Rental Value insurance. All other
obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein. 
 (b) REMEDIES. If Lessor shall be obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way,
such repair or restoration within ninety (90) days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual
notice, of Lessee’s election to terminate this Lease on a date not less than sixty (60) days following the giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within thirty (30) days
thereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced within said thirty (30) days, this Lease shall continue in full force and effect. “COMMENCE” shall mean either
the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the Premises, whichever first occurs. 
 9.7 TERMINATION — ADVANCE PAYMENTS. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments
made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s Security Deposit as has not been, or is not then required to be, used by Lessor. 

 9.8 WAIVE STATUTES. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any
damage to or destruction of the Premises with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith. 
 10. REAL PROPERTY TAXES. 
 10.1 DEFINITION OF “REAL
PROPERTY TAXES.” As used herein, the term “REAL PROPERTY TAXES” shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate
taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Premises, Lessor’s right to other income therefrom, and/or Lessor’s business of leasing, by any authority having
the direct or indirect power to tax and where the funds are generated with reference to the Building address and where the proceeds so generated are to be applied by the city, county or other local taxing authority of a jurisdiction within which the
Premises are located. The term “REAL PROPERTY TAXES” shall also include any tax, fee, levy, assessment or charge, or any increase therein, imposed by reason of events occurring during the term of this Lease, including but not limited to, a
change in the ownership of the Premises. 
 10.2 
 (a) PAYMENT OF TAXES. Lessee shall pay the Real Property Taxes applicable to the Premises during the term of this Lease. All such payments
shall be made at least ten (10) days prior to any delinquency date. Lessee shall promptly furnish Lessor with satisfactory evidence that such taxes have been paid. If any such taxes shall cover any period of time prior to or after the
expiration or termination of this Lease, Lessee’s share of such taxes shall be prorated to cover only that portion of the tax bill applicable to the period that this Lease is in effect, and Lessor shall reimburse Lessee for any overpayment. If
Lessee shall fail to pay any required Real Property Taxes, Lessor shall have the right to pay the same, and Lessee shall reimburse Lessor therefor upon demand. 
 10.3 JOINT ASSESSMENT. If the Premises are not separately assessed, Lessee’s liability shall be an equitable proportion of the Real Property Taxes for all of the land and improvements included within the tax
parcel assessed, such proportion to be conclusively determined by Lessor from the respective valuations assigned in the assessor’s work sheets or such other information as may be reasonably available. 
 10.4 PERSONAL PROPERTY TAXES. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility
Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause such property to be assessed and 

 
billed separately from the real property of Lessor. If any of Lessee’s said personal property shall be assessed with Lessor’s real property, Lessee
shall pay Lessor the taxes attributable to Lessee’s property within ten (10) days after receipt of a written statement. 
 11. UTILITIES. Lessee
shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered to Lessee, Lessee shall pay a
reasonable proportion, to be determined by Lessor, of all charges jointly metered. 
 12. ASSIGNMENT AND SUBLETTING. 
 12.1 LESSOR’S CONSENT REQUIRED. 
 (a) Lessee shall have the right to assign this Lease or to sublet the Premises in whole or in part to any entity which controls, is controlled by, or is under common control with Lessee (“Affiliate”), provided that Lessee provides
written notice to Lessor of any such subletting and of the identity of such assignee or sublessee and provided that the obligation of Lessee shall not be diminished or affected in any manner by reason of such assignment or subletting. Except for the
foregoing, Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, “ASSIGN OR ASSIGNMENT”) or sublet all or any part of Lessee’s interest in this Lease or in the Premises without
Lessor’s prior written consent which consent shall not be unreasonably withheld. 
 (b) A sale or transfer of any stock
of Lessee shall not constitute a transfer or assignment and shall not require the consent of Lessor. 
 (d) Where
Lessor’s consent is required hereunder, an assignment or subletting without consent shall, at Lessor’s option, be a Default curable after notice per Paragraph 13.1(c), or a noncurable Breach without the necessity of any notice and grace
period. If Lessor elects to treat such unapproved assignment or subletting as a noncurable Breach, Lessor may either: (i) terminate this Lease. 
 (e) Lessee’s remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or injunctive relief. 
 12.2 TERMS AND CONDITIONS APPLICABLE TO ASSIGNMENT AND SUBLETTING. 
 (a) Regardless of
Lessor’s consent, any assignment or subletting shall not: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii)

 
release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other
obligations to be performed by Lessee. 
 (b) Lessor may accept Rent or performance of Lessee’s obligations from any
person other than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor’s right to
exercise its remedies for Lessee’s Default or Breach. 
 (c) Lessor’s consent to any assignment or subletting shall
not constitute a consent to any subsequent assignment or subletting. 
 (d) In the event of any Default or Breach by Lessee,
Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee’s obligations under this Lease, including any assignee or sublessee, without first exhausting Lessor’s remedies against any
other person or entity responsible therefore to Lessor, or any security held by Lessor. 
 (e) Each request for consent to an
assignment or subletting shall be in writing, accompanied by information relevant to Lessor’s determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited
to the intended use and/or required modification of the Premises, if any, together with a fee of $1,000 (which amount shall be reduced to $500.00 in the case of any assignment or sublease to an Affiliate) as consideration for Lessor’s
considering and processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested. 
 (f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment or entering into such sublease, be
deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assignment or sublease, other than such obligations as are
contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing. 

 12.3 ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO SUBLETTING. The following terms and conditions shall
apply to any subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein: 
 (a) Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all Rent payable on any sublease, and Lessor may
collect such Rent and apply same toward Lessee’s obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee’s obligations, Lessee may collect said Rent. Lessor shall not, by reason of the
foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee’s obligations to such sublessee. Lessee hereby
irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee’s obligations under this Lease, to pay to Lessor all Rent due and to become due under
the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary. 
 (b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall
undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such
sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor. 
 (c) Any matter requiring the consent
of the sublessor under a sublease shall also require the consent of Lessor. 
 (d) No sublessee shall further assign or sublet
all or any part of the Premises without Lessor’s prior written consent. 
 (e) Lessor shall deliver a copy of any notice
of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee
for any such Defaults cured by the sublessee. 

 13. DEFAULT; BREACH; REMEDIES. 
 13.1 DEFAULT; BREACH. A “DEFAULT” is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or rules under this Lease. A “BREACH” is defined as the
occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period: 
 (a) The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is
jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism. 
 (b) The
failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation
under this Lease which endangers or threatens life or property, where such failure continues for a period of three (3) business days following written notice to Lessee. 
 (c) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the
service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) a Estoppel Certificate, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested
under Paragraph 42 (easements), or (viii) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of thirty (30) days following
written notice to Lessee. 
 (d) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of
the rules adopted under Paragraph 40 hereof, other than those described in subparagraphs 13.1(a), (b) or (c), above, where such Default continues for a period of thirty (30) days after written notice; provided, however, that if the nature
of Lessee’s Default is such that more than thirty (30) days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said thirty (30) day period and thereafter diligently
prosecutes such cure to completion. 
 (e) The occurrence of any of the following events: (i) the making of any general
arrangement or assignment for the benefit of creditors; (ii) becoming a “DEBTOR” as defined in 11 U.S.C. Section 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed
within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where possession is not restored to
Lessee within thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where such seizure is not
discharged within thirty (30) days; provided, however, in the event that any provision of this subparagraph (e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining
provisions. 

 (f) The discovery that any financial statement of Lessee or of any Guarantor given to
Lessor was materially false. 
 (g) If the performance of Lessee’s obligations under this Lease is guaranteed:
(i) the death of a Guarantor, (ii) the termination of a Guarantor’s liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor’s becoming insolvent or the subject of a
bankruptcy filing, (iv) a Guarantor’s refusal to honor the guaranty, or (v) a Guarantor’s breach of its guaranty obligation on an anticipatory basis, and Lessee’s failure, within sixty (60) days following written notice
of any such event, to provide written alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of
execution of this Lease. 
 13.2 REMEDIES. If Lessee fails to perform any of its affirmative duties or obligations, within ten (10) days
after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee’s behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or
governmental licenses, permits or approvals. The costs and expenses of any such performance by Lessor shall be due and payable by Lessee upon receipt of invoice therefor. If any check given to Lessor by Lessee shall not be honored by the bank upon
which it is drawn, Lessor, at its option, may require all future payments to be made by Lessee to be by cashier’s check. In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise
of any right or remedy which Lessor may have by reason of such Breach: 
 (a) Terminate Lessee’s right to possession of
the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at
the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have
been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided;
and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result
therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys’ fees, and that portion of any leasing
commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award 

 
of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent (1%). Efforts by Lessor to mitigate damages caused by Lessee’s Breach of this Lease shall not waive Lessor’s right to
recover damages under Paragraph 12. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or
Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee under the
unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure
the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute. 
 (b) Continue the Lease and Lessee’s right to possession and recover the Rent as it becomes due, in which event Lessee may sublet or
assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor’s interests, shall not constitute a termination of the Lessee’s right to possession.

 (c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the
Premises are located. The expiration or termination of this Lease and/or the termination of Lessee’s right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing
during the term hereof or by reason of Lessee’s occupancy of the Premises. 
 13.3 INTENTIONALLY OMITTED 
 13.4 LATE CHARGES. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the
exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be
received by Lessor within five (5) days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a one-time late charge equal to five percent (5%) of each such overdue amount. The
Parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee’s
Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. 

 13.5 INTEREST. Any monetary payment due Lessor hereunder, other than late charges, not received by
Lessor, within five (5) days of when due as to scheduled payments (such as Base Rent) or within thirty (30) days following the date on which it was due for non-scheduled payment, shall bear interest from the date when due, as to scheduled
payments, or the thirty-first (31st) day after it was due as to non-scheduled payments. The interest (“INTEREST”) charged shall be equal to ten percent (10%) per annum. 
  

	 	13.6	BREACH BY LESSOR. 

 (a) NOTICE OF BREACH.
Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than thirty
(30) days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however,
that if the nature of Lessor’s obligation is such that more than thirty (30) days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such thirty (30) day period and
thereafter diligently pursued to completion. 
 (b) PERFORMANCE BY LESSEE ON BEHALF OF LESSOR. In the event that neither
Lessor nor Lender cures said breach within thirty (30) days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee’s expense and
offset from Rent an amount equal to the greater of one month’s Base Rent or the Security Deposit, and to pay an excess of such expense under protest, reserving Lessee’s right to reimbursement from Lessor. Lessee shall document the cost of
said cure and supply said documentation to Lessor. 
 14. CONDEMNATION. If the Premises or any portion thereof are taken under the power of eminent domain or
sold under the threat of the exercise of said power (collectively “CONDEMNATION”), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than ten
percent (10%) of any building portion of the premises, or more than twenty-five percent (25%) of the land area portion of the premises not occupied by any building, is taken by Condemnation, Lessee may, at Lessee’s option, to be
exercised in writing within ten (10) days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority shall have taken possession) terminate this
Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the 

 
foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in
proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the
value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation for Lessee’s relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this
Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be
entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation. 
 16. ESTOPPEL CERTIFICATES. 
 (a) Each Party
(as “RESPONDING PARTY”) shall within ten (10) days after written notice from the other Party (the “REQUESTING PARTY”) execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the
then most current “ESTOPPEL CERTIFICATE” form published by the American Industrial Real Estate Association, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party.

 (b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such ten day period, the
Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting
Party’s performance, and (iii) if Lessor is the Requesting Party, not more than one month’s Rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party’s Estoppel Certificate, and
the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate. 
 (c) If Lessor
desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such financial statements as may be reasonably required by such lender or
purchaser, including, but not limited to, Lessee’s financial statements for the past three (3) years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the
purposes herein set forth. 
 16. INTENTIONALLY OMITTED 

 17. DEFINITION OF LESSOR. The term “LESSOR” as used herein shall mean the owner or owners at the time in
question of the fee title to the Premises, or, if this is a sublease, of the Lessee’s interest in the prior lease. In the event of a transfer of Lessor’s title or interest in the Premises or this Lease, Lessor shall deliver to the
transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of
all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only
upon the Lessor as hereinabove defined. Notwithstanding the above, and subject to the provisions of Paragraph 20 below, the original Lessor under this Lease, and all subsequent holders of the Lessor’s interest in this Lease shall remain liable
and responsible with regard to the potential duties and liabilities of Lessor pertaining to Hazardous Substances as outlined in Paragraph 6 above. 
 18.
SEVERABILITY. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof. 
 19. DAYS. Unless otherwise specifically indicated to the contrary, the word “days” as used in this Lease shall mean and refer to calendar days. 
 20. LIMITATION ON LIABILITY. Subject to the provisions of Paragraph 17 above, the obligations of Lessor under this Lease shall not constitute personal obligations of Lessor, the individual partners of Lessor or its or
their individual partners, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against
the individual partners of Lessor, or its or their individual partners, directors, officers or shareholders, or any of their personal assets for such satisfaction. 
 21. TIME OF ESSENCE. Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease. 
 22. NO PRIOR OR OTHER AGREEMENTS; BROKER DISCLAIMER. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding
shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease
and as to the nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach 

 
hereof by either Party. The liability (including court costs and Attorneys’ fees), of any Broker with respect to negotiation, execution, delivery or
performance by either Lessor or Lessee under this Lease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each
Broker’s liability shall not be applicable to any gross negligence or willful misconduct of such Broker. 
 23. NOTICES. 
 23.1 NOTICE REQUIREMENTS. All notices required or permitted by this Lease shall be in writing and may be delivered in person (by hand or by courier) or
may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 23. The addresses
noted adjacent to a Party’s signature on this Lease shall be that Party’s address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice, except that upon Lessee’s
taking possession of the Premises, the Premises shall constitute Lessee’s address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereafter
designate in writing. 
 23.2 DATE OF NOTICE. Any notice sent by registered or certified mail, return receipt requested, shall be deemed
given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given forty-eight (48) hours after the same is addressed as required herein and
mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed given twenty-four (24) hours after delivery of the same to the Postal Service or courier. Notices
transmitted by facsimile transmission or similar means shall be deemed delivered upon telephone confirmation of receipt, provided a copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall
be deemed received on the next business day. 
 24. WAIVERS. No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by
Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor’s consent to, or approval of, any act
shall not be deemed to render unnecessary the obtaining of Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring
such consent. The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of monies or damages due 

 
Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or conditions shall be of
no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. 
 25. RECORDING. Either
Lessor or Lessee shall, upon request of the other, execute, acknowledge and deliver to the other a short form memorandum of this Lease for recording purposes. The Party requesting recordation shall be responsible for payment of any fees applicable
thereto. 
 26. NO RIGHT TO HOLDOVER. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of
this Lease. In the event that Lessee holds over, then the Base Rent shall be increased to one hundred fifty percent (150%) of the Base Rent applicable during the month immediately preceding the expiration or termination. Nothing contained
herein shall be construed as consent by Lessor to any holding over by Lessee. 
 27. CUMULATIVE REMEDIES. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 
 28. COVENANTS AND CONDITIONS; CONSTRUCTION OF
AGREEMENT. All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be considered a part of this
Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had
prepared it. 
  
 29. BINDING EFFECT; CHOICE OF LAW. This Lease shall be binding upon the
parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the
Premises are located. 
 30. SUBORDINATION; ATTORNMENT; NON-DISTURBANCE. 
 30.1 SUBORDINATION. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or other hypothecation or security device (collectively, “SECURITY
DEVICE”), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this Lease
together referred to as “Lessor’s Lender”) shall have no liability or obligation to 

 
perform any of the obligations of Lessor under this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to the lien of
its Security Device by giving written notice thereof to Lessee, whereupon this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof. 
 30.2 ATTORNMENT. Subject to the non-disturbance provisions of Paragraph 30.3, Lessee agrees to attorn to a Lender or any other party who acquires
ownership of the Premises by reason of a foreclosure of a Security Device, and that in the event of such foreclosure, such new owner shall not: (i) be liable for any act or omission of any prior lessor or with respect to events occurring prior
to acquisition of ownership; (ii) be subject to any offsets or defenses which Lessee might have against any prior lessor; or (iii) be bound by prepayment of more than one (1) month’s rent. 
 30.3 NON-DISTURBANCE. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee’s subordination of this
Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a “NON-DISTURBANCE AGREEMENT”) from the Lender which Non-Disturbance Agreement provides that Lessee’s possession of the Premises, and this Lease,
including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, within sixty (60) days after the execution of this Lease, Lessor shall
use its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within
said sixty (60) days, then Lessee may, at Lessee’s option, directly contact Lessor’s lender and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement. 
 30.4 SELF-EXECUTING. The agreements contained in this Paragraph 30 shall be effective without the execution of any further documents; provided, however,
that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to separately document any subordination,
attornment and/or Non-Disturbance Agreement provided for herein. 
 31. ATTORNEYS’ FEES. If any Party or Broker brings an action or proceeding involving
the Premises to enforce the terms hereof or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys’ fees. Such fees may be awarded in
the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, “PREVAILING PARTY” shall include, without limitation, a Party or Broker who substantially obtains or
defeats the relief sought, as the case may be, whether 

 
by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys’ fees award shall not be
computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys’ fees reasonably incurred. In addition, Lessor shall be entitled to attorneys’ fees, costs and expenses incurred in the preparation
and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach. 
 32. LESSOR’S ACCESS; SHOWING PREMISES; REPAIRS. Lessor and Lessor’s agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times for the
purpose of making such alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary. All such activities shall be without abatement of rent or liability to Lessee. Lessee may at any time place on or about the Premises
any ordinary “FOR SUBLEASE” sign. 
 33. AUCTIONS. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without
Lessor’s prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction. 
 34. SIGNS. Subject to compliance with all Applicable Requirements and reasonable approval by Lessor, Lessee shall be entitled to all signage rights on the Premises. All signs must comply with all Applicable Requirements. 
 35. TERMINATION; MERGER. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or
cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies.
Lessor’s failure within ten (10) days following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor’s election to have such event constitute the termination of
such interest. 
 36. CONSENTS. Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other
Party, such consent shall not be unreasonably withheld or delayed. Lessor’s actual reasonable costs and expenses (including, but not limited to, architects’, attorneys’, engineers’ and other consultants’ fees) incurred in
the consideration of, or response to, a request by Lessee for any Lessor consent, including, but not limited to, consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an
invoice and supporting documentation therefor. Lessor’s consent to any 

 
act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent be
deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessor’s consent shall not
preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees with any
determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within ten (10) business days following such request.

 37. INTENTIONALLY OMITTED. 
 38. QUIET POSSESSION. Subject to
payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee’s part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the
term hereof. 
 39. OPTIONS. 
 39.1 DEFINITION.
“OPTION” shall mean: (a) the right to extend the term of or renew this Lease. 
 39.4 EFFECT OF DEFAULT ON OPTIONS.

 (a) Lessee shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice
of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time Lessee is in Breach of this Lease, or (iv) in
the event that Lessee has been given three (3) or more notices of separate Default, whether or not the Defaults are cured, during the twelve (12) month period immediately preceding the exercise of the Option. 
 (b) The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee’s inability to
exercise an Option because of the provisions of Paragraph 39.4(a). 
 (c) An Option shall terminate and be of no further force
or effect, notwithstanding Lessee’s due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term, (i) Lessee fails to pay Rent for a period of thirty (30) days after such Rent
becomes due (without any necessity of Lessor to give notice thereof), (ii) Lessor gives to Lessee three (3) or more notices of separate Default during any 

 
twelve (12) month period, whether or not the Defaults are cured, or (iii) if Lessee commits a material uncured Breach of this Lease. 
 the care and cleanliness of the grounds and including the parking, loading and unloading of vehicles, and that Lessee will pay its fair share of common expenses incurred
in connection therewith. 
 40. INTENTIONALLY OMITTED. 
 41.
SECURITY MEASURES. Lessee hereby acknowledges that the rental payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all
responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties. 
 42. RESERVATIONS.
Lessor reserves to itself the right, from time to time, to grant, without the consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as
such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any such easement rights, dedication,
map or restrictions. 
 43. PERFORMANCE UNDER PROTEST. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the
other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment “under protest” and such payment shall not be regarded as a voluntary payment and there shall
survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover
such sum or so much thereof as it was not legally required to pay. 
 44. AUTHORITY. If either Party hereto is a corporation, trust, limited liability
company, partnership, or similar entity, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each Party shall, within thirty
(30) days after request, deliver to the other Party satisfactory evidence of such authority. 
 45. CONFLICT. Any conflict between the printed
provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions. 
 46. OFFER.
Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to 

 
the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto. 
 47. AMENDMENTS. This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as they do not materially change
Lessee’s obligations hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises.

 48. MULTIPLE PARTIES. If more than one person or entity is named herein as either Lessor or Lessee, such multiple Parties shall have joint and several
responsibility to comply with the terms of this Lease. 
 49. MEDIATION AND ARBITRATION OF DISPUTES. An Addendum requiring the Mediation and/or the
Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease [ ] IS [ ] IS NOT attached to this Lease. 
 50. See Addendum 50.

 LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.

 ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY,
LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO: 
 1. SEEK ADVICE OF COUNSEL AS TO THE
LEGAL AND TAX CONSEQUENCES OF THIS LEASE. 

 2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD
INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEE’S INTENDED USE.

 WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF
THE STATE IN WHICH THE PREMISES IS LOCATED. 
 The parties hereto have executed this Lease at the place and on the dates specified above their respective
signatures. 
 Executed
at:                                       
  Executed
at:                                       
  
 on:                                      
   
 on:                                      
   
  

									
	 By LESSOR:
  
 KRDS, INC.,
 a California corporation
	 		 	 By LESSEE:
  
 LITRONIC INC.,
 a Delaware corporation

					
	 By:
	 	 /s/ Dilip Shah
	 		 	 By:
	 	 /s/ Kris Shah

	 Name Printed:  DILIP SHAH
	 		 	 Name Printed:  KRIS SHAH

	 Title: Partner KRDS
	 		 	 Title: CEO

  

			
		
	 By:
	 	  
	 By:
	 	  

  

									
	Name Printed:	 	  	 	 Name Printed:
	 	  

			
		
	 Title:
	 	  
	 Title:
	 	  

  

			
		
	 Address:
	 	  
	 Address:
	 	  

  

									
					
	 Telephone: (        )
	 	  	 		 	 Telephone: (        )
	 	  
					
	 Facsimile: (        )
	 	  	 		 	 Facsimile: (        )
	 	  
					
	 Federal ID No.
	 	  	 		 	 Federal ID No.
	 	  

  

	NOTE:	These forms are often modified to meet the changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AMERICAN
INDUSTRIAL REAL ESTATE ASSOCIATION, 700 So. Flower Street, Suite 600, Los Angeles, California 90017. (213) 687-8777. Fax No. (213) 687-8616 

 ADDENDUM TO STANDARD INDUSTRIAL/COMMERCIAL 
 SINGLE-TENANT LEASE - NET 
 This Addendum is attached to and forms a part of that certain Standard Industrial /Commercial Single Tenant Lease - Net dated January 2, 2000, by
and between KRDS, INC., a California corporation, as Lessor and LITRONIC INDUSTRIES, INC., a California corporation, as Lessee, for the Premises located at 17861 Cartwright, Irvine, California (the “Lease”). This Addendum modifies and
supplements the Lease by adding the following paragraphs thereto: 
  

	1.	BASE RENT. Base Rent shall be increased each lease year in accordance with the following schedule and shall be further increased upon commencement of the Extension Term in
accordance with Paragraph 2 of this Addendum. (In the event that the term commences on a day other than the first day of a calendar month, the first month in the following table shall be the first full calendar month following the commencement of
the term): 

  

				
	 Months
	  	Monthly Base Rent
	 01 - 12
	  	$	31,674.06
	 13 - 24
	  	$	32,941.02
	 25 - 36
	  	$	34,258.66
	 37 - 48
	  	$	35,629.01
	 49 - 60
	  	$	37,054.17
	 61 - 72
	  	$	38,536.34
	 73 - 84
	  	$	40,077.79

	2.	EXTENSION OPTION. 

 (a) Provided Lessee is
not in Breach or Default under this Lease, and no event or circumstance has occurred which, with the giving of notice or the passage of time, or both, would constitute a Default or Breach under this Lease, Lessee shall have one (1) option to
extend the term of this Lease (the “Extension Option”) for a five (5) year period (the “Extension Term”). 
 (b) The Extension Term shall commence when the Original Term expires. The Extension Term shall be on all of the same terms and conditions as applicable to the Original Term, except for the Base Rent, which shall be determined as provided
hereinbelow. 
 (c) Lessee shall exercise the Extension Option, if at all, by delivering to Lessor written notice of
Lessee’s election to exercise such Extension Option not less than six (6) months prior to expiration of the Original Term. 
 (d) Effective as of commencement of the Extension Term (the “FMRR Adjustment Date”), the Base Rent then payable under the Lease shall be adjusted to an amount equal to the greater of (i) the Fair Market Rental Rate of the
Premises (“FMRR”) determined as provided hereinbelow; or (ii) one hundred four percent (104%) of the Base Rent payable immediately prior to the Extension Term. For purposes of this Lease, FMRR shall mean the annual current rent
per rentable square foot that a willing lessee would pay and a willing lessor would accept, dealing at arm’s length, for comparable space as the Premises, giving consideration to annual rental rates per rentable square foot, improvements,
escalations, the quality of construction of the building and the Premises and other generally applicable terms and consideration of tenancy for the space in question at or about the time that such FMRR is deemed to take effect. 
 (e) The FMRR and new Base Rent for the Extension Term shall be determined as follows: 
 (i) Lessor and Lessee shall attempt to agree upon the FMRR for the Extension Term within thirty (30) days after Lessee has exercised
its Extension Option for the Extension Term. 

 (ii) If Lessor and Lessee are unable to agree on the FMRR within such thirty
(30) day period, then Lessor and Lessee shall, within ten (10) days thereafter, attempt to agree upon a mutually acceptable Appraiser (as defined hereinbelow) to establish the new FMRR. As used in this Lease, the term “Appraiser”
shall mean a real estate broker with at least five (5) years’ full-time experience in industrial building leasing in the geographic area in which the Premises are located. If Lessor and Lessee agree on an Appraiser, they shall appoint such
Appraiser within ten (10) days thereafter, and such sole Appraiser shall, within thirty (30) days thereafter, determine the FMRR in accordance with this Lease. The cost of the sole Appraiser shall be borne equally by Lessor and Lessee.

 (iii) If Lessor and Lessee cannot agree on a mutually acceptable Appraiser within said ten (10) day period, then
either party may, by giving notice to the other party, select and appoint the Appraiser of their choice to establish the FMRR. Each party shall bear the cost of the Appraiser appointed by it. If either party does not select an Appraiser within ten
(10) days following receipt of written notice of the other party’s selection of an Appraiser, then the Appraiser appointed by the other party shall be the sole Appraiser and shall, within thirty (30) days thereafter, determine the
FMRR in accordance with this Lease. 
 (iv) If two Appraisers are appointed by the parties, then the two Appraisers shall
attempt, within thirty (30) days after appointment of the latter of them, to agree on the determination of the FMRR in accordance with this Lease. 
 (v) If the two Appraisers cannot agree on the FMRR within such time period, then, within ten (10) days after expiration of such thirty (30) day period, then the two Appraisers shall select a third Appraiser,
who shall have not previously acted in any capacity for Lessor, Lessee or either Appraiser. If the two Appraisers are unable to agree on the third Appraiser, either Lessor or Lessee, by giving ten (10) days’ notice to the other party, can
apply to the presiding judge of the Superior Court of Orange County, for the selection of a third Appraiser. The costs of the third Appraiser shall be equally borne by both Lessor and Lessee. 
 (vi) Within thirty (30) days after the selection of the third Appraiser, a majority of the Appraisers shall determine the FMRR. If a
majority of the Appraisers are unable to agree on the 

 
FMRR within such thirty (30) day period, the three determinations of the FMRR derived by each Appraiser shall be added together and their total divided
by three (3); the resulting quotient shall be the FMRR; provided, however, that if the lowest determination of FMRR and/or the highest determination of FMRR are/is more than fifteen percent (15%) lower and/or higher than the middle
determination of FMRR, the lowest and/or the highest determination of FMRR shall be discarded, and the others averaged together to determine the FMRR (or if both the lowest and highest determination are both discarded, the middle determination of
FMRR shall control). 
 (vii) Upon the establishment of the FMRR, the new Base Rent under the Lease shall be the greater of
(i) the FMRR so established; or (ii) one hundred four percent (104%) of the Base Rent payable immediately prior to the Extension Term, which new Base Rent shall also be used for the purpose of calculating future increases in Base Rent
under the Lease. 
 (f) The Base Rent for the Extension Term, as determined pursuant to the foregoing, shall be increased
annually, effective as of the anniversary of the commencement of the Extension Term, to one hundred four percent (104%) of the Base Rent payable during the prior lease year. 
  

	3.	PARKING. Lessee shall have exclusive use of all parking located on the Premises.Lease Agreement dated January 15, 2004

 Exhibit 10.17 
 LEASE AGREEMENT 
 BY AND BETWEEN 
 EXECUTIVE II LIMITED PARTNERSHIP 
 AND 
 SSP SOLUTIONS, INC. 
 EXECUTIVE II MASTER LEASE

 Control Date: 01/15/04 
 MASTER LEASE 03/02/00 
  

 Reston Lease - Commerce Park Lease Agreement Final.doc 

 TABLE OF CONTENTS 
  

			
	  	  	Page
	 ARTICLE I
	  	1
	 Definitions
	  	1
		
	 ARTICLE II
	  	2
	 Premises
	  	2
		
	 ARTICLE III
	  	3
	 Term
	  	3
		
	 ARTICLE IV
	  	4
	 Base Rent
	  	4
		
	 ARTICLE V
	  	4
	 Increase in Real Estate Taxes and Operating Costs
	  	4
		
	 ARTICLE VI
	  	8
	 Use of Premises
	  	8
		
	 ARTICLE VII
	  	9
	 Assignment and Subletting
	  	9
		
	 ARTICLE VIII
	  	11
	 Maintenance and Repairs
	  	11
		
	 ARTICLE IX
	  	12
	 Alterations
	  	12
		
	 ARTICLE X
	  	13
	 Signs
	  	13
		
	 ARTICLE XI
	  	13
	 Security Deposit
	  	13
		
	 ARTICLE XII
	  	14
	 Holding Over
	  	14
		
	 ARTICLE XIII
	  	15
	 Insurance
	  	15
		
	 ARTICLE XIV
	  	.16
	 Services and Utilities
	  	16
		
	 ARTICLE XV
	  	17
	 Liability of Landlord
	  	17
		
	 ARTICLE XVI
	  	18
	 Rules
	  	18
		
	 ARTICLE XVII
	  	19
	 Damage or Destruction
	  	19
		
	 ARTICLE XVIII
	  	20
	 Condemnation
	  	20
		
	 ARTICLE XIX
	  	20
	 Default
	  	20
		
	 ARTICLE XX
	  	24
	 Bankruptcy
	  	24
		
	 ARTICLE XXI
	  	25
	 Subordination
	  	25

  

 Reston Lease - Commerce Park Lease Agreement Final.doc 

			
	 ARTICLE XXII
	  	26
	 Covenants of Landlord
	  	26
		
	 ARTICLE XXIII
	  	26
	 General Provisions
	  	26

  

							
	 EXHIBIT
	  	A	  	—	  	Plan Showing Premises
	 EXHIBIT
	  	B	  	—	  	Furniture Inventory
	 EXHIBIT
	  	C	  	—	  	Form of Certificate Affirming Lease Commencement Date
	 EXHIBIT
	  	D	  	—	  	Rules

  

 Reston Lease - Commerce Park Lease Agreement Final.doc 

 LEASE AGREEMENT 
 THIS LEASE AGREEMENT (this “Lease”) is dated as of January     , 2004, by and between EXECUTIVE II LIMITED PARTNERSHIP, a Virginia limited partnership
(“Landlord”), and SSP SOLUTIONS, INC., a Delaware corporation (“Tenant”). 
 ARTICLE I 
 Definitions 
 1.1 Building: A
five (5) story office building containing approximately seventy-six thousand nine hundred fourteen (76,914) square feet of rentable area, known as Commerce Executive Park Building II and located on approximately 3.22 acres of land at 11490
Commerce Park Drive, Reston, Virginia 20191 (the “Land”). 
 1.2 Premises: Approximately five thousand one hundred thirty
(5,130) square feet of rentable area located on the fifth (5th) floor of the Building and outlined on Exhibit A. 
 1.3 Lease Term:
Sixty-two (62) months. 
 1.4 Anticipated Occupancy Date: February 1, 2004. 
 1.5 Base Rent: One hundred fifteen thousand four hundred twenty-five and no/100 dollars ($115,425.00) for the first Lease Year (which amount is
based on twenty-two and 50/100 dollars ($22.50) per square foot of rentable area). 
 1.6 Base Rent Annual Escalation Percentage:
Three percent (3%). 
 1.7 Operating Charges Base Year: Calendar year 2004. 
 1.8 Security Deposit: Nine thousand six hundred eighteen dollars and seventy-five cents ($9,618.75). 
 1.9 Broker(s): Trammell Crow Company and Transwestern Commercial Services. 
 1.10 Tenant Address for Notices: 17861 Cartwright Road, Irvine, CA 92614, until Tenant has commenced beneficial use of the Premises, and 11490
Commerce Park Drive, Reston, Virginia 20191, after Tenant has commenced beneficial use of the Premises. 
 1.11 Complex: That complex
(of which the Building is a part) known as Commerce Executive Park and located on approximately 27 acres of land at Weihle Avenue and Sunrise Valley Drive, Reston, Virginia. 
  

 Reston Lease - Commerce Park Lease Agreement Final.doc 

 ARTICLE II 
 Premises 
 2.1 Tenant leases the Premises from Landlord upon the terms stated herein. Tenant will
have the non-exclusive right to use the common and public areas of and the surface parking spaces appurtenant to the Building. 
 2.2
Landlord shall have the right to change the location and configuration of the Premises subject to the following terms and conditions: (a) if Tenant has commenced beneficial use of the Premises, then Landlord shall provide Tenant not less than
thirty (30) days’ advance written notice of the/ date Tenant must vacate the Premises; (b) Landlord shall provide Tenant with substitute space of similar nature and size elsewhere in the Building (the “Substitute Premises”);
and (c) Landlord shall at Landlord’s expense (1) remove Tenant’s equipment and furniture from the Premises and reinstall them in the Substitute Premises, and (2) redecorate the Substitute Premises in a manner substantially
similar to the manner in which the Premises were decorated. Within ten (10) days after Landlord submits an amendment of this Lease indicating the location and configuration of the Substitute Premises, Tenant shall execute such amendment.

 2.3 Tenant shall have use of the existing furniture in the Premises for the Lease Term. Attached hereto as Exhibit B is an
inventory of the existing furniture. All such furniture shall remain in the Premises during the Lease Term. Provided Tenant occupies the Premises for the entirety of the Lease Term and further provided that there has been no Event of Default on the
part of Tenant, at the end of the Lease Term all such furniture shall become the property of Tenant and shall be removed from the Premises. 
 2.4 Tenant shall have the right, at Tenant’s option, to assume the lease for the existing phone system within the Premises (subject to all terms and conditions of said phone system lease). In the event Tenant assumes the phone system
lease, Tenant shall be responsible for all costs and fees, including transfer fees, relating thereto. In the event Tenant elects not to assume the phone system lease, Landlord agrees to remove the phone system from the Premises. Tenant shall notify
Landlord of its intention to assume the phone system lease within ten (10) days from the date of execution of this Lease. 
  

 Reston Lease - Commerce Park Lease Agreement Final.doc 

 ARTICLE III 
 Term 
 3.1 The Lease Term shall commence on the Lease Commencement Date specified in
Section 3.2. If the Lease Commencement Date is not the first day of a month, then the Lease Term shall be the period set forth in Section 1.3 plus the partial month in which the Lease Commencement Date occurs. The Lease Term shall also
include any renewal or extension of the term of this Lease. 
 3.2 The Lease Commencement Date shall be the earlier of (a) the
Anticipated Occupancy Date set forth in Section 1.4, or (b) the date Tenant commences beneficial use of the Premises. Tenant shall be deemed to have commenced beneficial use of the Premises when Tenant begins to move furniture,
furnishings, inventory, equipment or trade fixtures into the Premises. Promptly after the Lease Commencement Date is ascertained, Landlord and Tenant shall execute a certificate (in the form of Exhibit C) confirming the Lease Commencement Date.

 3.3 It is presently anticipated that the Premises will be delivered to Tenant on or about the Anticipated Occupancy Date. If Landlord does
not deliver possession of the Premises by such date, then Landlord shall not have any liability whatsoever and this Lease shall not be rendered voidable, on account thereof. 
 3.4 Lease Year shall mean a period of twelve (12) consecutive months commencing on the Lease Commencement Date and each successive twelve
(12) month period thereafter; provided, however, that if the Lease Commencement Date is not the first day of a month, then the second Lease Year shall commence on the first day of the month in which the first anniversary of the Lease
Commencement Date occurs. 
 3.5 Landlord hereby grants to Tenant the conditional right, exercisable at Tenant’s option, to terminate
this Lease upon the last day of the thirty-eighth (38th) month of the Lease Term. If exercised, and if the
conditions applicable thereto have been satisfied, the Lease Term shall be amended to be thirty-eight (38) months. The right of termination granted to Tenant shall be subject to and shall be exercised in accordance with the following terms and
conditions: 
 (a) Tenant shall exercise its right of termination by giving Landlord written notice of such election not earlier than two
hundred forty (240) days nor later than one hundred eighty (180) days prior to the expiration of the thirty-eighth (38th) month of the initial Lease Term. 
 (b) Tenant’s notice of termination shall be accompanied by Tenant’s payment
to Landlord of an early termination payment in the amount of the sum of ten thousand five hundred ten and 67/100 

  

 Reston Lease - Commerce Park Lease Agreement Final.doc 
 3 

 
dollars ($10,510.67) (which amount is based on one month’s escalated Base Rent) plus the unamortized leasing commission for months thirty-eight
(38) through sixty-two (62). 
 (c) Tenant’s right of termination under this Section may be exercised only by Tenant or
Tenant’s Affiliate, and may not be exercised by any other transferee, assignee or sublessee of Tenant. 
 ARTICLE IV 

Base Rent 
 4.1 Tenant shall pay the
Base Rent in equal monthly installments in advance on the first day of each month during a Lease Year. On the first day of the second and each subsequent Lease Year, the Base Rent in effect shall be increased by the product of (a) the Base Rent
Annual Escalation Percentage, multiplied by (b) the Base Rent in effect. Concurrently with Tenant’s execution of this Lease, Tenant shall pay an amount equal to one (1) monthly installment of the Base Rent payable during the first
Lease Year, which amount shall be credited toward the monthly installment of the Base Rent payable for the third full calendar month of the Lease Term. If the Lease Commencement Date is not the first day of a month, then the Base Rent from the Lease
Commencement Date until the first day of the following month shall be prorated on a per diem basis at the rate of one-thirtieth (l/30th) of the monthly installment of the Base Rent payable during the first Lease Year, and Tenant shall pay such
prorated installment on the Lease Commencement Date. 
 4.2 All sums payable by Tenant shall be paid to Landlord in legal tender of the
United States, at the address to which notices to Landlord are to be given or to such other party or such other address as Landlord may designate in writing. Landlord’s acceptance of rent after it shall have become due and payable shall not
excuse a delay upon subsequent occasions or constitute a waiver of rights. 
 4.3 Landlord agrees to abate the Base Rent for the first and
second full calendar month of the Lease Term. 
 ARTICLE V 
 Increases in Real Estate Taxes and Operating Costs 
 5.1 Tenant shall pay Tenant’s proportionate
share of the amount by which Operating Charges (as defined in Section 5.2) during each calendar year falling entirely or partly within the Lease Term exceed a base amount (the “Operating Charges Base Amount”) equal to the Operating
Charges actually incurred during 

  

 Reston Lease - Commerce Park Lease Agreement Final.doc 
 4 

 
the Operating Charges Base Year (as defined in Section 1.7 above). For purposes of this Section, Tenant’s proportionate share shall be that
percentage which is equal to a fraction, the numerator of which is the number of square feet of rentable area in the Premises, and the denominator of which is the number of square feet of rentable area in the Building excluding the number of square
feet of rentable area of basement storage space. 
 5.2 Operating Charges shall mean the following expenses incurred by Landlord in the
ownership and operation of the Building: (a) electricity, water, sewer and other utility charges; (b) insurance premiums; (c) management fees; (d) costs of service and maintenance contracts; (e) maintenance and repair
expenses which are deducted by Landlord in computing its federal income tax liability; (f) depreciation for capital expenditures made by Landlord to reduce operating expenses if Landlord reasonably estimates that the annual reduction in
operating expenses shall exceed such depreciation; (g) Real Estate Taxes (as defined in Section 5.3); (h) charges for janitorial services; (i) assessments imposed by any association now or hereafter established to maintain common
areas and facilities of the Complex, (j) any business, professional and occupational license tax payable by Landlord with respect to the Building; (k) reasonable reserves for replacements, repairs and contingencies; (l) Building
engineer salary and employment expenses; and (m) any other expense reasonably incurred by Landlord in maintaining, repairing or operating the Building. Operating Charges shall not include: (1) principal or interest payments on any
mortgage, deed of trust or ground lease; (2) leasing commissions; (3) depreciation of the Building or other improvements except as specified above; (4) the costs of special services or utilities separately charged to particular
tenants of the Building; (5) expenses for painting, redecorating, space planning, construction or other work which Landlord performs for any tenant premises of the Building; (6) escrow fees, brokerage fees or commissions, loan fees,
points, title charges or other payments on or arising with regarding to loans to Landlord or indebtedness secured by the Building, or any costs connected with refinancing of such loans; (7) advertising and marketing costs, tenant concessions
and any other costs associated with the leasing or sale of the Building, Land or any portion thereof; (8) Landlord’s income taxes; (9) Landlord’s costs of any service sold to any tenant or occupant of the Building for which
Landlord is entitled to be reimbursed as an additional charge or rental over and above the base rent and escalations payable under the lease or occupancy agreement with that tenant or other occupant (including, without limitation, after-hours HVAC
costs or over-standard electrical 

  

 Reston Lease - Commerce Park Lease Agreement Final.doc 
 5 

 
consumption costs incurred by other tenant or occupants); (10) the initial cost of construction of the Building; (11) salaries or other
compensation of any personnel whose salaries are covered by a management fee (except that the Building Engineer salary shall be an Operating Expense and shall not be covered by the management fee); (12) expenses for repairs or replacements to
the extent such expenses are covered by and reimbursed to Landlord by virtue of warranties from contractors or suppliers; (13) any amounts paid to any person, firm or corporation related or otherwise affiliated with Landlord or any general
partner, officer or director of Landlord or any of its general partners, to the extent same exceeds arms-length competitive prices paid in the Washington, DC metropolitan area for the services or goods provided; (14) costs relating to
maintaining Landlord’s existence, either as a corporation, partnership, or other entity, such as trustee’s fees, annual fees, partnership organization or administration expenses, deed recordation expenses, legal and accounting fees (other
than with respect to Building operations); (15) costs incurred due to Landlord’s violation of any terms and conditions of this Lease or any other lease relating to the Building; (16) overhead profit increments paid to Landlord’s
subsidiaries or affiliates for management or other services on or to the Building or for supplies or other materials to the extent that the cost of the services, supplies, or materials materially exceeds the cost that would have been paid had the
services, supplies or materials been provided by unaffiliated parties on a competitive basis; (17) rental and other expenses incurred in leasing air conditioning systems, elevators, or other equipment ordinarily considered to be of a capital
nature (excepting equipment used in providing janitorial services, when such equipment is not affixed to the Building); (18) the cost of any item of service or repair to the extent covered by any warranty, guaranty or insurance policy
maintained or held by Landlord; (19) any Operating Charges which are payable by any tenant directly to the provider of the service or for which Landlord is entitled to be reimbursed directly by a tenant, or by insurance proceeds; and
(20) legal or accounting fees, costs and disbursements for negotiating leases or enforcing the lease obligations of other tenants in the Building. 
 All Operating Charges shall be “net” only and shall be reduced by the amount of any insurance or other reimbursement, recoupment, payment, discount or allowance received by Landlord. 
 5.3 Real Estate Taxes shall mean (a) all real estate taxes, including general and special assessments, if any, which are imposed upon Landlord or
assessed against the Building and/or the land upon which the Building is located (the “Land”), (b) any 

  

 Reston Lease - Commerce Park Lease Agreement Final.doc 
 6 

 
other present or future taxes or governmental charges that are imposed upon Landlord or assessed against the Building or the Land which are in the nature of
or in substitution for real estate taxes, including any tax levied on or measured by the rents payable by tenants of the Building, and (c) expenses (including attorneys’ fees) incurred in reviewing or seeking a reduction of real estate
taxes. 
 5.4 If the average occupancy rate for the Building during any calendar year including the Operating Charges Base Year is less than
ninety-five percent (95%), or if any tenant is separately paying for the electricity or janitorial services furnished to its premises, then Operating Charges for such calendar year shall be deemed to include all additional expenses, as reasonably
estimated by Landlord, which would have been incurred during such calendar year if such average occupancy rate had been ninety-five percent (95%) and if Landlord paid for electricity and janitorial services furnished to such premises. For
example, if the average occupancy rate for the Building during a calendar year is eighty percent (80%), and if the janitorial contractor charges are $1.00 per square foot of occupied rentable area per year, and if the Building contains one hundred
thousand (100,000) square feet of rentable area, then it would be reasonable for Landlord to estimate that if the Building had been ninety-five percent (95%) occupied during such year, then janitorial charges for such year would have been
ninety-five thousand dollars ($95,000.00). 
 5.5 At the beginning of the Lease Term and at the beginning of each calendar year thereafter,
Landlord may submit a statement setting forth the amount by which Operating Charges that Landlord reasonably expects to be incurred during each calendar year exceed the Operating Charges Base Amount and Tenant’s proportionate share of such
excess. Tenant shall pay to Landlord on the first day of each month after receipt of such statement, until Tenant’s receipt of any succeeding statement, an amount equal to one-twelfth (1/12) of such share. 
 5.6 Within approximately one hundred twenty (120) days after the end of each calendar year, Landlord shall submit a statement showing
(a) Tenant’s proportionate share of the amount by which Operating Charges incurred during the preceding calendar year exceeded the Operating Charges Base Amount, and (b) the aggregate amount of Tenant’s estimated payments during
such year. If such statement indicates that the aggregate amount of such estimated payments exceeds Tenant’s actual liability, then Tenant shall deduct the net overpayment from its next estimated payment(s) pursuant to this Article. If such
statement indicates 

  

 Reston Lease - Commerce Park Lease Agreement Final.doc 
 7 

 
that Tenant’s actual liability exceeds the aggregate amount of such estimated payments, then Tenant shall pay the amount of such excess. If Tenant does
not notify Landlord in writing of any objection to such statement within forty five (45) days after receipt, then Tenant shall be deemed to have waived such objection. 
 5.7 If the Lease Term commences or expires on a day other than the first day or the last day of a calendar year, respectively, then Tenant’s
liability for Operating Charges incurred during such year shall be proportionately reduced. 
 ARTICLE VI 
 Use of Premises 
 6.1 Tenant shall use
the Premises solely for general office purposes and for no other use or purpose. Tenant shall not use the Premises for any unlawful purpose or in any manner that in Landlord’s opinion will constitute waste, nuisance or unreasonable annoyance to
Landlord or any tenant of the Building. Tenant shall comply with all present and future laws, ordinances, regulations and orders concerning the use, occupancy and condition of the Premises and all machinery, equipment and furnishings therein. If any
such law, ordinance, regulation or order requires an occupancy or use permit for the Premises, then Tenant shall obtain and keep current such permit at Tenant’s expense and promptly deliver a copy thereof to Landlord. Use of the Premises is
subject to all covenants, conditions and restrictions of record. 
 6.2 Tenant shall pay before delinquency any business, rent or other tax
or fee that is now or hereafter assessed or imposed upon Tenant’s use or occupancy of the Premises, the conduct of Tenant’s business in the Premises or Tenant’s equipment, fixtures, furnishings, inventory or personal property. If any
such tax or fee is enacted or altered so that such tax or fee is imposed upon Landlord or so that Landlord is responsible for collection or payment thereof, then Tenant shall pay the amount of such tax or fee. 
 6.3 Tenant shall not generate, use, store or dispose of any Hazardous Materials in or about the Building. Hazardous Materials shall mean
(a) “hazardous wastes,” as defined by the Resource Conservation and Recovery Act of 1976, as amended from time to time, (b) “hazardous substances,” as defined by the 

  

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Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, (c) “toxic substances,” as defined
by the Toxic Substances Control Act, as amended from time to time, (d) “hazardous materials,” as defined by the Hazardous Materials Transportation Act, as amended from time to time, (e) oil or other petroleum products, and
(f) any substance whose presence could be detrimental to the Building or hazardous to health or the environment. Notwithstanding the foregoing, Tenant may store in manufacturer provided containers for use in the Premises office supplies
customarily found in general offices in such quantities suitable for Tenant’s consumption. 
 ARTICLE VII 
 Assignment and Subletting 
 7.1 Tenant
shall not assign this Lease or any of Tenant’s rights or obligations hereunder, or sublet or permit anyone to occupy the Premises or any part thereof, without Landlord’s prior written consent, which consent may be granted or withheld in
Landlord’s discretion, which will not be unreasonably withheld. No assignment or transfer of this Lease may be effected by operation of law or otherwise without Landlord’s prior written consent. Any assignment, subletting or occupancy,
Landlord’s consent thereto or Landlord’s collection or acceptance of rent from any assignee, subtenant or occupant shall not be construed as a waiver or release of Tenant from liability hereunder. Any assignment, subletting or occupancy,
Landlord’s consent thereto or Landlord’s collection or acceptance of rent from any assignee, subtenant or occupant shall not be construed as relieving Tenant or any assignee, subtenant or occupant from the obligation of obtaining
Landlord’s prior written consent to any subsequent assignment, subletting or occupancy. Tenant assigns to Landlord any sum due from any assignee, subtenant or occupant of Tenant as security for Tenant’s performance of its obligations
pursuant to this Lease. Tenant authorizes each such assignee, subtenant or occupant to pay such sum directly to Landlord if such assignee, subtenant or occupant receives written notice from Landlord specifying that such rent shall be paid directly
to Landlord. Landlord’s collection of such rent shall not be construed as an acceptance of such assignee, subtenant or occupant as tenant. All restrictions and obligations imposed pursuant to this Lease on Tenant shall be deemed to extend to
any subtenant, assignee or occupant of Tenant, and Tenant shall cause such persons to comply with all such restrictions and obligations. Tenant shall not mortgage this Lease without Landlord’s written consent, which consent may be granted or
withheld in Landlord’s sole and absolute discretion. Tenant shall pay the expenses (including 

  

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reasonable attorneys’ fees) incurred by Landlord in connection with Tenant’s request for Landlord to give its consent to any assignment,
subletting, occupancy or mortgage. 
 7.2 If Tenant is a partnership, then any dissolution of Tenant or a withdrawal or change, whether
voluntary, involuntary or by operation of law, of partners owning a controlling interest in Tenant shall be deemed a voluntary assignment of this Lease. If Tenant is a corporation, then any dissolution, merger, consolidation or other reorganization
of Tenant, or any sale or transfer of a controlling interest of its capital stock, shall be deemed a voluntary assignment of this Lease. 
 7.3 If Tenant wants to assign, sublet or otherwise transfer all or part of the Premises or this Lease, then Tenant shall give Landlord written notice (“Tenant’s Request Notice”) of the identity of the proposed assignee or
subtenant and its business, all terms of the proposed assignment or subletting, and the commencement date of the proposed assignment or subletting (the “Proposed Sublease Commencement Date”) and the area proposed to be assigned or sublet
(the “Proposed Sublet Space”). Tenant shall also transmit therewith the most recent financial statement or other evidence of financial responsibility of such assignee or subtenant and a certification executed by Tenant and such proposed
assignee or subtenant stating whether any premium or other consideration is being paid for the proposed assignment or sublease. 
 7.4
Landlord shall have the right in its sole and absolute discretion to terminate this Lease with respect to the Proposed Sublet Space by sending Tenant written notice within forty-five (45) days after Landlord’s receipt of Tenant’s
Request Notice. If the Proposed Sublet Space does not constitute the entire Premises and Landlord elects to terminate this Lease with respect to the Proposed Sublet Space, then (a) Tenant shall tender the Proposed Sublet Space to Landlord on
the Proposed Sublease Commencement Date as if the Proposed Sublease Commencement Date had been originally set forth in this Lease as the expiration date of the Lease Term with respect to the Proposed Sublet Space, and (b) as to all portions of
the Premises other than the Proposed Sublet Space, this Lease shall remain in full force and effect except that the additional rent payable pursuant to Article V and the Base Rent shall be reduced proportionately. Tenant shall pay all expenses of
construction required to permit the operation of the Proposed Sublet Space separate from the balance of the Premises. If the Proposed Sublet Space constitutes the entire Premises and Landlord elects to terminate this Lease, the (1) Tenant shall
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on the Proposed Sublease Commencement Date, and (2) the Lease Term shall terminate on the Proposed Sublease Commencement Date, and neither Landlord nor
Tenant shall have any further liability for any amounts that otherwise may be due under this Lease. Notwithstanding the foregoing sentence, Tenant shall remain responsible for any Operating Expense adjustments for Operating Expenses accruing up to
the Proposed Sublease Commencement Date. In addition, Tenant shall remain liable for any and all costs associated with any damage or destruction to the Premises, normal wear and tear excepted. 
 7.5 If any sublease, assignment or other transfer (whether by operation of law or otherwise) provides that subtenant, assignee or other transferee is to
pay any amount in excess of the rent and other charges due under this Lease, then, whether such excess be in the form of any increased rental, lump sum payment, payment for the sale or lease of fixtures or other leasehold improvements or any other
form (and if the applicable space does not constitute the entire Premises, the existence of such excess shall be determined on a prorata basis), Tenant shall pay to Landlord any such excess upon such terms as shall be specified by Landlord and in no
event later than ten (10) days after Tenant’s receipt thereof. Landlord shall have the right to inspect Tenant’s books and records relating to any sublease, assignment or other transfer. Any sublease, assignment or other transfer
shall be effected on forms supplied or approved by Landlord. 
 ARTICLE VIII 
 Maintenance and Repairs 
 8.1 Tenant shall keep and maintain the Premises and
all fixtures and equipment located therein in clean, safe and sanitary condition, shall take good care thereof and make all repairs thereto, shall suffer no waste or injury thereto, and at the expiration or earlier termination of the Lease Term,
shall surrender the Premises in the same order and condition in which they were on the Lease Commencement Date, ordinary wear and tear and unavoidable damage by the elements excepted. Except as otherwise provided in Article XVII or as covered by
Landlord’s insurance, all injury, breakage and damage to the Premises and to any other part of the Building or the Land caused by any act or omission of any invitee, agent, employee, subtenant, assignee, contractor, client, family member,
licensee, customer or guest of Tenant (collectively “Invitees”) or Tenant, shall be repaired by and at Tenant’s expense, except that Landlord shall have the right at Landlord’s option to make any such repair and to charge Tenant
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therewith. Landlord shall provide and install replacement tubes for building standard fluorescent light fixtures (subject to reimbursement pursuant to
Article V); all other bulbs and tubes for the Premises shall be provided and installed at Tenant’s expense. 
 ARTICLE IX

 Alterations 
 9.1
Tenant agrees to accept the Premises in its AS-IS, WHERE-IS condition. Landlord is under no obligation to make any alterations, additions, improvements or other changes (collectively “Alterations”) in or to the Premises except as otherwise
expressly provided in this Lease. 
 9.2 Tenant shall not make or permit anyone to make any Alteration in or to the Premises or the Building
without Landlord’s prior written consent, which consent may be granted or withheld in Landlord’s sole and absolute discretion with respect to structural Alterations and non-structural Alterations which are visible from the exterior of the
Premises, and which consent shall not be unreasonably withheld with respect to all other non- structural Alterations. Structural Alterations shall be deemed to include without limitation any Alteration that will or is likely to necessitate any
changes, replacements or additions to the electrical, mechanical, plumbing, heating, ventilating or air conditioning systems of the Premises or the Building. Any Alteration made by Tenant shall be made: (a) in a good, workmanlike, first-class
and prompt manner; (b) using new materials only; (c) by a contractor and in accordance with plans and specifications approved in writing by Landlord; (d) in accordance with legal requirements and requirements of any insurance company
insuring the Building; (e) after obtaining any required consent of the holder of any Mortgage (as defined in Section 21.1); and (f) after obtaining a workmen’s compensation insurance policy approved in writing by Landlord. If any
lien (or a petition to establish a lien) is filed in connection with any Alteration, then such lien (or petition) shall be discharged by Tenant at Tenant’s expense within thirty (30) days thereafter by the payment thereof or filing of a
bond acceptable to Landlord. Landlord’s consent to the making of an Alteration shall not be deemed to constitute Landlord’s consent to subject its interest in the Premises or the Building to liens which may be filed in connection
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 9.3 If any Alteration is made without Landlord’s prior written consent, then Landlord shall have the
right at Tenant’s expense to remove and correct such Alteration and restore the Premises and the Building to their condition immediately prior thereto or to require Tenant to do the same. All Alterations to the Premises or the Building made by
either party shall immediately become Landlord’s property and shall remain upon and be surrendered with the Premises at the expiration or earlier termination of the Lease Term; provided, however, that if Tenant is not in default under this
Lease, then Tenant shall have the right to remove, prior to the expiration or earlier termination of the Lease Term, all movable furniture, furnishings and equipment installed in the Premises solely at Tenant’s expense, and except that Tenant
shall be required to remove all Alterations to the Premises or the Building which Landlord designates in writing for removal. Movable furniture, furnishings and equipment shall be deemed to exclude any item which would normally be removed from the
Premises with the assistance of any tool or machinery other than a dolly. Landlord shall have the right to repair at Tenant’s expense all damage to the Premises or the Building caused by such removal or to require Tenant to do the same. If any
such furniture, furnishing or equipment is not removed by Tenant prior to the expiration or earlier termination of the Lease Term, then the same shall become Landlord’s property and shall be surrendered with the Premises as a part thereof;
provided, however, that Landlord shall have the right to remove from the Premises at Tenant’s expense such furniture, furnishing or equipment and any Alteration which Landlord designates in writing for removal. 
 ARTICLE X 
 Signs 
 10.1 Landlord will list Tenant’s name in the Building directory, if any, and provide building standard signage near one suite entry door. Tenant
shall not paint, affix or otherwise display on any part of the exterior or interior of the Building any other sign, advertisement or notice. If any such item that has not been approved by Landlord is so displayed, then Landlord shall have the right
to remove such item at Tenant’s expense or to require Tenant to do the same. 
 ARTICLE XI 
 Security Deposit 
 11.1 Concurrently
with Tenant’s execution of this Lease, Tenant shall deposit with Landlord the Security Deposit. Landlord shall not be required to pay interest on the Security Deposit or to maintain the Security Deposit in a separate 

  

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account. Within three (3) days after written notice of Landlord’s use of the Security Deposit, Tenant shall deposit with Landlord cash in an amount
sufficient to restore the Security Deposit to its prior amount. Within approximately sixty (60) days after the later of (a) the expiration or earlier termination of the Lease Term, or (b) Tenant’s vacating the Premises, Landlord
shall return the Security Deposit less such portion thereof as Landlord may have used to satisfy Tenant’s obligations. If Landlord transfers the Security Deposit to a transferee of the Building or Landlord’s interest therein, then such
transferee (and not Landlord) shall be liable for its return. The holder of any Mortgage shall not be liable for the return of the Security Deposit unless such holder actually receives the Security Deposit. 
 ARTICLE XII 
 Holding Over

 12.1 Tenant acknowledges that it is extremely important that Landlord have substantial advance notice of the date on which Tenant will
vacate the Premises, because Landlord will (a) require an extensive period to locate a replacement tenant, and (b) plan its entire leasing and renovation program for the Building in reliance on its lease expiration dates. Tenant also
acknowledges that if Tenant fails to surrender the Premises at the expiration or earlier termination of the Lease Term, then it will be conclusively presumed that the value to Tenant of remaining in possession, and the loss that will be suffered by
Landlord as a result thereof, far exceed the Base Rent and additional rent that would have been payable had the Lease Term continued during such holdover period. Therefore, if Tenant does not immediately surrender the Premises upon the expiration or
earlier termination of the Lease Term, then the rent shall be increased to equal the greater of (1) fair market rent for the premises, or (2) double the Base Rent, additional rent and other sums that would have been payable pursuant to the
provisions of this Lease if the Lease Term had continued during such holdover period. Such rent shall be computed on a monthly basis and shall be payable on the first day of such holdover period and the first day of each calendar month thereafter
during such holdover period until the Premises have been vacated. Landlord’s acceptance of such rent shall not in any manner adversely affect Landlord’s other rights and remedies, including Landlord’s right to evict Tenant and to
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 ARTICLE XIII 
 Insurance 
 13.1 Landlord shall maintain throughout the Lease Term fire and extended coverage
insurance on the Building in an amount at least equal to ninety-five percent (95%) of the replacement cost thereof. Landlord shall also maintain through the Lease Term broad form comprehensive general liability insurance (written on an
occurrence basis and including an endorsement for personal injury) in an amount of not less than two million dollars ($2,000,000) combined single limit per occurrence. All such insurance shall contain an endorsement that such insurance shall remain
in full force and effect notwithstanding that the insured may have waived its claim against any person prior to the occurrence of a loss, and provide that the insurer waives all right of recover by way of subrogation against Tenant, its partners,
agents and employees. Tenant shall not conduct any activity or place any item in or about the Building which may increase the rate of any insurance on the Building. If any increase in the rate of such insurance is due to any such activity or item,
then (whether or not Landlord has consented to such activity or item) Tenant shall pay the amount of such increase. The statement of any insurance company or insurance rating organization (or other organization exercising similar functions in
connection with the prevention of fires or the correction of hazardous conditions) that such an increase is due to any such activity or item shall be conclusive evidence thereof. 
 13.2 Tenant shall maintain throughout the Lease Term with a company licensed to do business in the jurisdiction in which the Building is located,
(a) broad form comprehensive general liability insurance (written on an occurrence basis and including an endorsement for personal injury), and (b) all-risk property insurance for Tenant’s property. Such liability insurance shall be
in minimum amounts typically carried by prudent tenants engaged in similar operations, but in no event shall be in an amount less that two million dollars ($2,000,000) combined single limit per occurrence. Such property insurance shall be in an
amount not less than that required to replace all Alterations and all other contents of the Premises. All such insurance shall name Landlord and the holder of any Mortgage as additional named insureds, contain an endorsement that such insurance
shall remain in full force and effect notwithstanding that the insured may have waived its claim against any person prior to the occurrence of a loss, provide that the insurer waives all right of recovery by way of subrogation against Landlord, its
partners, agents and employees, and contain an endorsement prohibiting cancellation, failure to renew, reduction in amount of insurance or change of coverage (1) as to the interests of Landlord or the holder of any Mortgage by reason of any act
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without the insurer’s giving Landlord thirty (30) days’ prior written notice of such action. Landlord reserves the right from time to time to
require Tenant to obtain higher minimum amounts of insurance. Tenant shall deliver a certificate of such insurance and receipts evidencing payment of the premium for such insurance (and, upon request, copies of all required insurance policies,
including endorsements and declarations) to Landlord on or before the Lease Commencement Date and at least annually thereafter. 
 ARTICLE
XIV 
 Services and Utilities 
 14.1 Landlord will furnish to the Premises air-conditioning and heating during the seasons they are required in Landlord’s reasonable judgment. Landlord will provide: janitorial service on Monday through Friday only (excluding legal
public holidays celebrated by the federal government); electricity; water; elevator service; and exterior window-cleaning service. The normal hours of operation of the Building will be 8:00 a.m. to 6:00 p.m. on Monday through Friday (except such
holidays) and 9:00 a.m. to 12:00 p.m. on Saturday (except such holidays) and such other hours, if any, as Landlord determines. At least one (1) elevator shall be in service at all times. If Tenant requires air-conditioning or heat beyond the
normal hours of operation, then Landlord will furnish the same, provided Tenant gives Landlord sufficient advance notice of such requirement. Notice shall be provided by Tenant to Landlord requesting such additional service not less than twenty-four
(24) hours prior to commencement of this service and Tenant shall pay Landlord Seventy-Five Dollars ($75.00) per hour for each hour of usage of the core units only, Thirty-Five Dollars ($35.00) for each hour of usage of the perimeter units
only, and one hundred and ten dollars ($110.00) for each hour of usage of the core and perimeter units together. Except as otherwise specified herein, Landlord shall not be required to furnish services and utilities during hours other than the
normal hours of operation of the Building. Tenant shall have access to the Premises twenty-four (24) hours a day every day of the Term. After hours access to the Building will be controlled by means of an electronic passcard system. Tenant
shall have the right, at Tenant’s sole cost and expense, to install additional security systems within the Premises to protect its administrative and technical areas; however, Landlord’s Building engineer shall have access to said areas at
all times for repair and maintenance purposes, provided advance reasonable notice is provided to Tenant and Building engineer is accompanied by a representative of Tenant (except in cases of emergency). 
  

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 14.2 Landlord may install checkmeters to electrical circuits to verify that Tenant’s electricity
consumption is not excessive. If such checkmeters indicate that such consumption is excessive, then Landlord may install at Tenant’s expense submeters to ascertain Tenant’s actual electricity consumption, and thereafter Tenant shall pay
for such consumption at the then-current price per kilowatt hour charged Landlord by the utility. 
 ARTICLE XV 
 Liability of Landlord 
 15.1 Landlord,
its employees and agents shall not be liable to Tenant, any Invitee or any other person or entity for any damage (including indirect and consequential damage), injury, loss or claim (including claims for the interruption of or loss to business)
based on or arising out of any cause whatsoever (except as otherwise provided in this Section), including without limitation the following: repair to any portion of the Premises or the Building; interruption in the use of the Premises or any
equipment therein; any accident or damage resulting from any use or operation (by Landlord, Tenant or any other person or entity) of elevators or heating, cooling, electrical, sewerage or plumbing equipment or apparatus; termination of this Lease by
reason of damage to the Premises or the Building; fire, robbery, theft, vandalism, mysterious disappearance or any other casualty; actions of any other tenant of the Building or of any other person or entity; failure or inability to furnish any
service specified in this Lease; and leakage in any part of the Premises or the Building from water, rain, ice or snow that may leak into, or flow from, any part of the Premises or the Building, or from drains, pipes or plumbing fixtures in the
Premises or the Building. If any condition exists which may be the basis of a claim of constructive eviction, then Tenant shall give Landlord written notice thereof and a reasonable opportunity to correct such condition, and in the interim Tenant
shall not claim that it has been constructively evicted or is entitled to a rent abatement. Any property placed by Tenant or Invitees in or about the Premises or the Building shall be at the sole risk of Tenant, and Landlord shall not in any manner
be responsible therefor. If any employee of Landlord receives any package or article delivered for Tenant, then such employee shall be acting as Tenant’s agent for such purpose and not as Landlord’s agent. For the purposes of this Article,
the term “Building” shall be deemed to include the Land. Notwithstanding the foregoing provisions of this Section, Landlord shall not be released from liability to Tenant for any physical injury to any natural person caused by 

  

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Landlord’s willful misconduct to the extent such injury is not covered by insurance (a) carried by Tenant or such person, or (b) required by
this Lease to be carried by Tenant. 
 15.2 Tenant shall reimburse Landlord for, and shall indemnify, defend upon request and hold Landlord,
its employees and agents harmless from and against, all costs, damages, claims, liabilities, expenses (including attorneys’ fees), losses and court costs suffered by or claimed against Landlord, directly or indirectly, based on or arising out
of, in whole or in part, (a) use and occupancy of the Premises or the business conducted therein, (b) any act or omission of Tenant or any Invitee, (c) any breach of Tenant’s obligations under this Lease, including failure to
surrender the Premises upon the expiration or earlier termination of the Lease Term, or (d) any entry by Tenant or any Invitee upon the Land prior to the Lease Commencement Date. 
 15.3 If any landlord hereunder transfers the Building or such landlord’s interest therein, then such landlord shall not be liable for any obligation
or liability based on or arising out of any event or condition occurring after such transfer. Within five (5) days after request, Tenant shall attorn to such transferee and execute, acknowledge and deliver any document submitted to Tenant
confirming such attornment. 
 15.4 Tenant shall not have the right to offset or deduct the amount allegedly owed to Tenant pursuant to any
claim against Landlord from any rent or other sum payable to Landlord. Tenant’s sole remedy for recovering upon such claim shall be to institute an independent action against Landlord. 
 15.5 If Tenant or any Invitee is awarded a money judgment against Landlord, then recourse for satisfaction of such judgment shall be limited to execution
against Landlord’s estate and interest in the Building. No other asset of Landlord shall be available to satisfy or subject to such judgment. 
 ARTICLE XVI 
 Rules 
 Tenant and Invitees shall observe the rules specified in Exhibit D. Tenant and Invitees shall also observe any other rule that Landlord may promulgate for the operation or maintenance of the Building, provided that
notice thereof is given and such rule is not inconsistent with the provisions of this Lease. Landlord shall have no duty to enforce such rules or any provision of any other lease against any other tenant. 
  

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 ARTICLE XVII 
 Damage or Destruction 
 17.1 If the Premises or the Building are totally or partially damaged or
destroyed thereby rendering the Premises totally or partially inaccessible or unusable, then Landlord shall diligently repair and restore the Premises and the Building to substantially the same condition they were in prior to such damage or
destruction; provided, however, that if in Landlord’s judgment such repair and restoration cannot be completed within ninety (90) days after occurrence of such damage or destruction (taking into account the time needed for effecting a
satisfactory settlement with any insurance company involved, removal of debris, preparation of plans and issuance of all required governmental permits), then Landlord shall have the right, at its sole option, to terminate this Lease as of the
sixtieth (60th) day after such damage or destruction by giving written notice of termination within forty-five (45) days after the occurrence of such damage or destruction. If the Lease is terminated pursuant to this Article, then rent shall be
apportioned (based on the portion of the Premises which is usable after such damage or destruction) and paid to the date of termination. If this Lease is not terminated as a result of such damage or destruction, then until such repair and
restoration of the Premises are substantially complete, Tenant shall be required to pay the Base Rent and additional rent only for the portion of the Premises that is usable while such repair and restoration are being made. 
 If this Lease is not terminated as a result of such damage or destruction, then Landlord shall bear the expenses of such repair and restoration of the
Premises and the Building; provided, however, that if such damage or destruction was caused by the act or omission of Tenant or any Invitee, then Tenant shall pay the amount by which such expenses exceed the insurance proceeds, if any, actually
received by Landlord on account of such damage or destruction; and provided further, however, that Landlord shall not be required to repair or restore any Alteration previously made by Tenant or any of Tenant’s trade fixtures, furnishings,
equipment or personal property. Notwithstanding anything herein to the contrary, Landlord shall have the right to terminate this Lease if (a) Landlord’s insurance is insufficient to pay the full cost of such repair and restoration, (b) the
holder of any Mortgage fails or refuses to make such insurance proceeds available for such repair and restoration, (c) zoning or other applicable laws or regulations do not permit such repair and restoration, or (d) the damage to the Building
exceeds twenty-five percent (25%) of the replacement value of the Building. 
  

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 ARTICLE XVIII 
 Condemnation 
 18.1 If one-third or more of the Premises or occupancy thereof shall be taken or
condemned by any governmental or quasi- governmental authority for any public or quasi-public use or purpose or sold under threat of such a taking or condemnation (collectively, “condemned”), then this Lease shall terminate on the date
title vests in such authority and rent shall be apportioned as of such date. If less than one-third of the Premises or occupancy thereof is condemned, then this Lease shall continue in full force and effect as to the part of the Premises not
condemned, except that as of the date title vests in such authority Tenant shall not be required to pay the Base Rent and additional rent with respect to the part of the Premises condemned. Notwithstanding anything herein to the contrary, if
twenty-five percent (25%) or more of the Land or the Building is condemned, then Landlord shall have the right to terminate this Lease as of the date title vests in such authority. 
 18.2 All awards, damages and other compensation paid by such authority on account of such condemnation shall belong to Landlord, and Tenant assigns to
Landlord all rights to such awards, damages and compensation. Tenant shall not make any claim against Landlord or the authority for any portion of such award, damages or compensation attributable to damage to the Premises, value of the unexpired
portion of the Lease Term, loss of profits or goodwill, leasehold improvements or severance damages. Nothing contained herein, however, shall prevent Tenant from pursuing a separate claim against the authority for the value of furnishings and trade
fixtures installed in the Premises at Tenant’s expense and for relocation expenses, provided that such claim shall in no way diminish the award, damages or compensation payable to Landlord in connection with such condemnation. 
 ARTICLE XIX 
 Default 

19.1 An Event of Default is: (a) Tenant’s failure to make when due any payment of the Base Rent, additional rent or other sum, which failure
continues for five (5) days; (b) Tenant’s failure to perform or observe any other covenant or condition, which failure continues for more than thirty (30) days following notice from Landlord; provided however if the nature of the cure cannot be
accomplished within said thirty (30) day period, such additional time as may be reasonably necessary not to exceed ninety (90) days, so long as Tenant commences and diligently pursues such cure within said thirty (30) day period;
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than thirty (30) days; (d) an Event of Bankruptcy as specified in Article XX; or (e) Tenant’s dissolution or liquidation. 
 19.2 If there shall be an Event of Default, including an Event of Default prior to the Lease Commencement Date, then the provisions of this Section shall
apply. Landlord shall have the right, at its sole option, to terminate this Lease. In addition, with or without terminating this Lease, Landlord may re-enter, terminate Tenant’s right of possession and take possession of the Premises. The
provisions of this Article shall operate as a notice to quit, any other notice to quit or of Landlord’s intention to re-enter the Premises being expressly waived. If necessary, Landlord may proceed to recover possession of the Premises under
applicable laws, or by such other proceedings, including re-entry and possession, as may be applicable. If Landlord elects to terminate this Lease and/or elects to terminate Tenant’s right of possession, then everything in this Lease to be done
by Landlord shall cease, without prejudice, however, to Tenant’s liability for all rent and other sums accrued through the later of termination or Landlord’s recovery of possession. Landlord may relet the Premises or any part thereof,
alone or together with other premises, for such term(s) (which may extend beyond the date on which the Lease Term would have expired but for Tenant’s default) and on such terms and conditions (which may include concessions or free rent and
alterations of the Premises) as Landlord, in its sole discretion, may determine, but Landlord shall not be liable for, nor shall Tenant’s obligations be diminished by reason of, Landlord’s failure to relet the Premises or collect any rent
due upon such reletting. Whether or not this Lease is terminated, Tenant nevertheless shall remain liable for the Base Rent, additional rent or damages which may be due or sustained prior to such default, all costs, fees and expenses (including
without limitation reasonable attorneys’ fees, brokerage fees and expenses incurred in placing the Premises in first-class rentable condition (normal wear and tear excepted) incurred by Landlord in pursuit of its remedies and in renting the
Premises to others from time to time. Tenant shall also be liable for additional damages which at Landlord’s election shall be either: (a) an amount equal to the Base Rent and additional rent which would have become due during the
remainder of the Lease Term, less the amount of rental, if any, which Landlord receives during such period from others to whom the Premises may be rented (other than any additional rent payable as a result of any failure of such other person to
perform any of its obligations), in which case such damages shall be computed and payable in monthly installments, in advance, on the first day of each calendar month following Tenant’s default and continuing until the date on which 

  

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the Lease Term would have expired but for Tenant’s default; provided, however, that if at the time of any reletting of the Premises there exists other
space in the Building available for leasing, then the Premises shall be deemed the last space rented, even though the Premises may be relet prior to the date such other space is leased. Separate suits may be brought to collect any such damages for
any month(s), and such suits shall not in any manner prejudice Landlord’s right to collect any such damages for any subsequent month(s), or Landlord may defer any such suit until after the expiration of the Lease Term, in which event such suit
shall be deemed not to have accrued until the expiration of the Lease Term; or (b) an amount equal to the present value (as of the date of Tenant’s default) of the Base Rent and additional rent which would have become due through the date
on which the Lease Term would have expired but for Tenant’s default, which damages shall be payable to Landlord in a lump sum on demand. For purposes of this Section, present value shall be computed by discounting at a rate equal to one
(1) whole percentage point above the discount rate then in effect at the Federal Reserve Bank nearest to the Building. Tenant waives any right of redemption, re-entry or restoration of the operation of this Lease under any present or future
law, including any such right which Tenant would otherwise have if Tenant shall be dispossessed for any cause. Whether or not this Lease and/or Tenant’s right of possession is terminated, Landlord shall have the right to terminate any renewal
or expansion right contained in this Lease and to grant or withhold any consent or approval pursuant to this Lease in its sole and absolute discretion. 
 19.3 Landlord’s rights and remedies set forth in this Lease are cumulative and in addition to Landlord’s other rights and remedies at law or in equity, including those available as a result of any
anticipatory breach of this Lease. Landlord’s exercise of any such right or remedy shall not prevent the concurrent or subsequent exercise of any other right or remedy. Landlord’s delay or failure to exercise or enforce any of
Landlord’s rights or remedies or Tenant’s obligations shall not constitute a waiver of any such rights, remedies or obligations. Landlord shall not be deemed to have waived any default unless such waiver expressly is set forth in an
instrument signed by Landlord. Any such waiver shall not be construed as a waiver of any covenant or condition except as to the specific circumstances described in such waiver. Neither Tenant’s payment of an amount less than a sum due nor
Tenant’s endorsement or statement on any check or letter accompanying such payment shall be deemed an accord and satisfaction. Notwithstanding any request or designation by Tenant, Landlord may apply any payment received from Tenant to any
payment then due. Landlord may accept the 

  

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same without prejudice to Landlord’s right to recover the balance of such sum or to pursue other remedies. Re-entry and acceptance of keys shall not be
considered an acceptance of a surrender of this Lease. 
 19.4 If more than one natural person and/or entity shall constitute Tenant, then
the liability of each such person or entity shall be joint and several. If Tenant is a general partnership or other entity the partners or members of which are subject to personal liability, then the liability of each such partner or member shall be
joint and several. 
 19.5 If Tenant fails to make any payment to any third party or to do any act herein required to be made or done by
Tenant, then Landlord may, but shall not be required to, make such payment or do such act. Landlord’s taking such action shall not be considered a cure of such failure by Tenant or prevent Landlord from pursuing any remedy it is otherwise
entitled to in connection with such failure. If Landlord elects to make such payment or do such act, then all expenses incurred, plus interest thereon at the Default Rate (as hereinafter defined) from the date incurred to the date of payment thereof
by Tenant, shall constitute additional rent. The Default Rate shall equal the rate per annum which is the greater of eighteen percent (18%) or five (5) whole percentage points above the prime rate published from time to time in the Money
Rates section of the Wall Street Journal. 
 19.6 If Tenant fails to make any payment of the Base Rent, additional rent or any other sum
payable to Landlord on or before the date such payment is due and payable (without regard to any grace period specified in Section 19.1), then Tenant shall pay a late charge of five percent (5%) of the amount of such payment. In addition,
such payment shall bear interest at the Default Rate from the date such payment was due to the date of payment thereof. 
 19.7 Upon
Landlord’s request, Tenant grants to Landlord a lien upon and a security interest in the existing personal property, inventory, furniture, fixtures, equipment and other assets which are set forth in Exhibit B. Within five (5) days
after request, Tenant shall execute, acknowledge and deliver to Landlord a financing statement and any other document submitted to Tenant evidencing or establishing such lien and security interest. During any period Tenant is in default under this
Lease, Tenant shall not sell, transfer or remove from the Premises such personal property, inventory, furniture, fixtures, equipment and assets as set forth in Exhibit B. At the expiration 

  

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of the Lease Term and provided the Tenant meets the condition of Section 2.3, the Landlord shall terminate its security interest granted under this
Section 19.7. 
 ARTICLE XX 
 Bankruptcy 
 20.1 An Event of Bankruptcy is: (a) Tenant’s, a Guarantor’s or any general partner (a
“General Partner”) of Tenant’s becoming insolvent, as that term is defined in Title 11 of the United States Code (the “Bankruptcy Code”), or under the insolvency laws of any state (the “Insolvency Laws”);
(b) appointment of a receiver or custodian for any property of Tenant, a Guarantor or a General Partner, or the institution of a foreclosure or attachment action upon any property of Tenant, a Guarantor or a General Partner; (c) filing of
a voluntary petition by Tenant, a Guarantor or a General Partner under the provisions of the Bankruptcy Code or Insolvency Laws; (d) filing of any involuntary petition against Tenant, a Guarantor or a General Partner as the subject debtor under
the Bankruptcy Code or Insolvency Laws, which either (1) is not dismissed within ninety (90) days after filing, or (2) results in the issuance of an order for relief against the debtor; or (e) Tenant’s, a Guarantor’s or a
General Partner’s making or consenting to an assignment for the benefit of creditors or a composition of creditors. 
 20.2 Upon
occurrence of an Event of Bankruptcy, Landlord shall have all rights and remedies available pursuant to Article XIX; provided, however, that while a case (the “Case”) in which Tenant is the subject debtor under the Bankruptcy Code is
pending, Landlord’s right to terminate this Lease shall be subject, to the extent required by the Bankruptcy Code, to any rights of Tenant or its trustee in bankruptcy (collectively, “Trustee”) to assume or assign this Lease pursuant
to the Bankruptcy Code. To the extent permitted by applicable law, Trustee shall not have the right to assume or assign this Lease unless Trustee promptly (a) cures all defaults under this Lease, (b) provides adequate assurance of future
performance of the Lease by Tenant or Tenant’s assignee, and (c) complies with all other requirement of the Bankruptcy Code. If Trustee fails to assume or assign this Lease in accordance with the requirements of the Bankruptcy Code within
sixty (60) days after the initiation of the Case (as such date may be extended by order of the court), then Trustee shall be deemed to have rejected this Lease. Adequate assurance of future performance shall require that the following minimum
criteria be met: (1) Tenant or Tenant’s assignee shall demonstrate equal or comparable financial ability to perform under this Lease as existed as of the 

  

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execution of this Lease; (2) Trustee must agree to pay, at any time Landlord draws on such security deposit, the amount necessary to restore such
security deposit to its original amount; and (3) All assurances of future performance specified in the Bankruptcy Code must be provided. 
 ARTICLE XXI 
 Subordination 
 21.1 This Lease is subject and subordinate to the lien, provisions, operation and effect of all mortgages, deeds of trust, ground leases or other security instruments which may now or hereafter encumber the Building
or the Land (collectively, “Mortgages”), to all funds and indebtedness intended to be secured thereby, and to all renewals, extensions, modifications, recastings or refinancings thereof. The holder of any Mortgage to which this Lease is
subordinate shall have the right (subject to any required approval of the holders of any superior Mortgage) at any time to declare this Lease to be superior to the lien, provisions, operation and effect of such Mortgage and Tenant shall execute,
acknowledge and deliver all confirming documents required by such holder. 
 21.2 In confirmation of the foregoing subordination, Tenant
shall at Landlord’s request promptly execute any requisite or appropriate document. Tenant appoints Landlord as Tenant’s attorney-in-fact to execute any such document for Tenant. Tenant waives the provisions of any statute or rule of law
now or hereafter in effect which may give or purport to give Tenant any right to terminate or otherwise adversely affect this Lease or Tenant’s obligations in the event any such foreclosure proceeding is prosecuted or completed or in the event
the Land, the Building or Landlord’s interest therein is sold at a foreclosure sale or by deed in lieu of foreclosure. If this Lease is not extinguished upon such sale or by the purchaser following such sale, then, at the request of such
purchaser, Tenant shall attorn to such purchaser and shall recognize such purchaser as the landlord under this Lease. Upon such attornment such purchaser shall not be (a) bound by any payment of the Base Rent or additional rent more than one
(1) month in advance, (b) bound by any amendment of this Lease made without the consent of the holder of each Mortgage existing as of the date of such amendment, (c) liable for damages for any breach, act or omission of any prior
landlord, or (d) subject to any offsets or defenses which Tenant might have against any prior landlord. Within five (5) days after receipt, Tenant shall execute, acknowledge and deliver any requisite or appropriate document submitted to
Tenant confirming such attornment. 
  

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 21.3 If any lender providing financing secured by the Building requires as a condition of such financing
that modifications to this Lease be obtained, and provided that such modifications (a) are reasonable, (b) do not adversely affect in a material manner Tenant’s use of the Premises as herein permitted, and (c) do not increase the
rent and other sums to be paid by Tenant, then Landlord may submit to Tenant an amendment to this Lease incorporating such modifications. Tenant shall execute, acknowledge and deliver such amendment to Landlord within ten (10) days after
receipt. 
 ARTICLE XXII 
 Covenants of Landlord 
 22.1 Landlord covenants that it has the right to enter into this Lease and that if Tenant shall
perform timely all of its obligations, then, subject to the provisions of this Lease, Tenant shall during the Lease Term peaceably and quietly occupy and enjoy possession of the Premises without hindrance by Landlord or anyone claiming through
Landlord. 
 22.2 Landlord reserves the right to: (a) change the street address and name of the Building or Complex; (b) change the
arrangement and location of entrances, passageways, doors, doorways, corridors, elevators, stairs, toilets or other public parts of the Building; (c) erect, use and maintain pipes and conduits in and through the Premises; (d) grant to
anyone the exclusive right to conduct any particular business in the Building or the Complex not inconsistent with the permitted use of the Premises; (e) use or lease exclusively the roof areas, the sidewalks and other exterior areas;
(f) resubdivide the Land or to combine the Land with other lands; (g) construct improvements (including kiosks) on the Land and in the public and common areas of the Building; (h) relocate any parking area designated for Tenant’s
use; and (i) install and display signs, advertisements and notices on any part of the exterior or interior of the Building. Exercise of any such right shall not be considered a constructive eviction or a disturbance of Tenant’s business or
occupancy. 
 ARTICLE XXIII 
 General Provisions 
 23.1 Tenant acknowledges that neither Landlord nor any broker, agent or employee of Landlord has made
any representation or promise with respect to the Premises or the Building except as expressly set forth herein, and no right is being acquired by 

  

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Tenant except as expressly set forth herein. This Lease contains the entire agreement of the parties and supersedes all prior agreements, negotiations,
letters of intent, proposals, representations, warranties and discussions between the parties. This Lease may be changed in any manner only by an instrument signed by both parties. 
 23.2 Nothing contained in this Lease shall be construed as creating any relationship between Landlord and Tenant other than that of landlord and tenant.

 23.3 Landlord and Tenant each warrants that in connection with this Lease it has not employed or dealt with any broker, agent or finder
other than the Broker(s). Tenant shall indemnify and hold Landlord harmless from and against any claim for brokerage or other commissions asserted by any other broker, agent or finder employed by Tenant or with whom Tenant has dealt. 
 23.4 From time to time upon five (5) days prior written notice, Tenant and each subtenant, assignee or occupant of Tenant shall execute, acknowledge
and deliver to Landlord and any designee of Landlord a written statement certifying: (a) that this Lease is in unmodified and in full force and effect (or that this Lease is in full force and effect as modified and stating the modifications);
(b) the dates to which rent and any other charges have been paid; (c) that Landlord is not in default in the performance of any obligation (or specifying the nature of any default) ; (d) the address to which notices are to be sent;
(e) that this lease is subject and subordinate to all Mortgages; (f) that Tenant has accepted the Premises and all work thereto has been completed (or specifying the incomplete work); and (g) such other matters as Landlord may request. Any such
statement may be relied upon by any owner of the Building or the Land, and any prospective purchaser of the Building or the Land, any holder or prospective holder of a Mortgage or any other person or entity. Tenant acknowledges that time is of the
essence to the delivery of such statements and Tenant’s failure to deliver timely such statements may cause substantial damages resulting from, for example, delays in obtaining financing secured by the Building. 
 23.5 Landlord, Tenant, Guarantors and General Partners waive trial by jury in any action, claim or counterclaim brought in connection with any matter
arising out of or in any way connected with this Lease, the landlord-tenant relationship, Tenant’s use or occupancy of the Premises or any claim of injury or damage. Landlord, Tenant, all Guarantors and all General Partners waive any objection
to the venue of any action filed in 

  

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any court situated in the jurisdiction in which the Building is located and waive any right under the doctrine of forum non conveniens or otherwise to
transfer any such action filed in any such court to any other court. 
 23.6 All notices or other required communications shall be in writing
and shall be deemed duly given when delivered in person (with receipt therefor), or when sent by certified or registered mail, return receipt requested, postage prepaid, to the following addresses: (a) if to Landlord, at c/o Centennial, 12120
Sunset Hills Road, Suite 100, Reston, Virginia 20190-3231 with a copy to Flinn & Beagan, 8300 Boone Boulevard, Suite 225, Vienna, Virginia 22182-2630, Attention: Robert J. Beagan, Esquire; or (b) if to Tenant, at the Tenant Address for
Notices. Either party may change its address for the giving of notices given in accordance with this Section. If Landlord or the holder of any Mortgage notifies Tenant that a copy of each notice to Landlord shall be sent to such holder at a
specified address, then Tenant shall send (in the manner specified in this Section and at the same time such notice is sent to Landlord) a copy of each such notice to such holder, and no such notice shall be considered duly sent unless such copy is
so sent to such holder. If Tenant claims that Landlord has breached any obligation, then Tenant shall send such holder notice specifying the breach and permit such holder a reasonable opportunity to cure the breach. 
 23.7 Each provision of this Lease shall be valid and enforceable to the fullest extent permitted by law. If any provision or its application to any
person or circumstance shall to any extent be invalid or unenforceable, then such provision shall be deemed to be replaced by the valid and enforceable provision most substantively similar thereto, and the remainder of this Lease and the application
of such provision to other persons or circumstances shall not be affected. 
 23.8 Feminine, masculine or neuter pronouns shall be
substituted for those of another form, and the plural or singular shall be substituted for the other number, in any place in which the context may require. 
 23.9 The provisions of this Lease shall be binding upon and inure to the benefit of the parties and their respective representatives, successors and assigns, subject to the provisions herein restricting assignment or
subletting. 
 23.10 Tenant shall permit Landlord and its designees to enter the Premises, without charge therefor and without diminution of
the rent payable by Tenant, to inspect and exhibit 

  

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the Premises and make such alterations and repairs as Landlord may deem necessary. 
 23.11 This Lease shall be governed by the laws of the jurisdiction in which the Building is located. 
 23.12 Headings are used for convenience and shall not be considered when construing this Lease. 
 23.13 The submission of an unsigned copy of this document to Tenant shall not constitute an offer or option to lease. This Lease shall become effective
and binding only upon execution and delivery by both Landlord and Tenant. 
 23.14 Time is of the essence with respect to each obligation of
Tenant and Landlord. 
 23.15 This Lease may be executed in multiple counterparts, each of which is deemed an original and all of which
constitute one and the same document. 
 23.16 Neither this Lease nor a memorandum thereof shall be recorded. This Lease is a deed of lease
if the Term exceeds five years. 
 23.17 Landlord reserves the right to make reasonable changes to the plans and specifications for the
Building without Tenant’s consent, provided such changes do not alter the character of the Building as a first-class office building. 
 23.18 The rentable area of the Building and the Premises shall be determined by Landlord’s architect in accordance with a modified version of the Building Owners and Managers Association International’s Standard Method for
Measuring Floor Area in Office Buildings dated July 31, 1980. 
 23.19 Except as otherwise provided in this Lease, any additional rent
or other sum owed by Tenant to Landlord, and any cost, expense, damage or liability incurred by Landlord for which Tenant is liable, shall be considered additional rent payable pursuant to this Lease and paid by Tenant no later than ten
(10) days after the date Landlord notifies Tenant of the amount thereof. 
 23.20 Tenant’s liabilities existing as of the
expiration or earlier termination of the Lease Term shall survive such expiration or earlier termination. 
  

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 23.21 If Landlord is in any way delayed or prevented from performing any obligation due to fire, act of
God, governmental act or failure to act, labor dispute, inability to procure materials or any cause beyond Landlord’s reasonable control (whether similar or dissimilar to the foregoing events), then the time for performance of such obligation
shall be excused for the period of such delay or prevention and extended for a period equal to the period of such delay or prevention. 
 23.22 The deletion of any printed, typed or other portion of this Lease shall not evidence an intention to contradict such deleted portion. Such deleted portion shall be deemed not to have been inserted in this Lease. 
 23.23 The person executing this Lease on Tenant’s behalf warrants that such person is duly authorized to so act. 
 23.24 At Landlord’s request from time to time, Tenant shall submit annual financial statements and such additional information regarding
Tenant’s financial condition as Landlord may request, provided such additional information does not cause a violation of any reporting requirement imposed by the SEC. Tenant warrants that all such statements and information heretofore or
hereafter submitted to Landlord are and shall be correct and complete. 
 [THIS SPACE LEFT INTENTIONALLY BLANK] 
  

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 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease under seal as of the date first above
written. 
  

											
	 WITNESS/ATTEST:
	 		 		 	 LANDLORD:

		 		 		 	 EXECUTIVE II LIMITED PARTNERSHIP

		 		 		 	 By:
	 	 Commerce Executive Two, Inc.,
 its general partner

					
	 /s/ Illegible
	 	 (SEAL)
	 		 	 By:
	 	 /s/ Illegible

		 		 		 		 	 Title:
	 	 Asst. Secretary

				
	 WITNESS/ATTEST:
	 		 		 	 TENANT:

		 		 		 	 SSP SOLUTIONS, INC.

					
	 /s/ Illegible
	 	 (SEAL)
	 		 	 By:
	 	 /s/ Illegible

	 CFO
	 		 		 	 Title:
	 	 CEO

  

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 Exhibit B 
  

			
	 2
	 	Round kitchen tables
	 8
	 	Kitchen chairs
	 1
	 	Conference table in glass conference room
	 8
	 	Conference chairs in glass conference room
	 6
	 	Chairs
	 1
	 	Receptionist desk
	 1
	 	Reception chair
	 3
	 	Office desks with returns
	 3
	 	Hutches for desks
	 3
	 	Secretarial desks
	 3
	 	Hutches for secretarial desks
	 4
	 	Workstations with dividing wall
	 4
	 	Hutches for workstations
	 2
	 	Reception area lounge chairs
	 2
	 	Reception area tables
	 2
	 	Small round tables
	 4
	 	Wooden chairs
	Misc built in cabinetry and counters in work room and kitchen
	Misc white boards

  

 32 

 EXHIBIT B 
 FURNITURE INVENTORY 
  

			
		
	 Landlord:
	 	  
		 	(initial)
		
	 Tenant:
	 	  
		 	(initial)

  

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 EXHIBIT C 
 FORM OF CERTIFICATE AFFIRMING THE LEASE COMMENCEMENT DATE 
 This Exhibit is attached to and made a
part of that certain Lease Agreement dated as of
                                        ,
2004 (the “Lease”), by and between EXECUTIVE II LIMITED PARTNERSHIP (“Landlord”) and SSP SOLUTIONS, INC. (“Tenant”). The Certificate to be executed by Landlord and Tenant pursuant to Section 3.2 of the Lease shall
provide as follows: 
 “This Certificate is being provided pursuant to the terms and provisions of that certain Lease
Agreement dated as of
                                        ,
             (the “Lease”), by and between the undersigned. The parties confirm the following: 
 1. The Lease Commencement Date is
                    . 
 2. The initial Term of the lease shall expire on
                                        .

 Attached to this Certificate are certificates and evidence of payment of premiums for all insurance required pursuant to Section 13.2
of the Lease.” 
  

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 EXHIBIT D 
 RULES 
 This Exhibit is attached to and made a part of that certain Lease Agreement dated as of
                    , 2004 (the “Lease”), by and between EXECUTIVE II LIMITED PARTNERSHIP (“Landlord”) and SSP SOLUTIONS,
INC. (“Tenant”). 
 1. Tenant shall not obstruct or encumber or use for any purpose other than ingress and egress to and from the
Premises any sidewalk, entrance, passage, court, elevator, vestibule, stairway, corridor, hall or other part of the Building not exclusively occupied by Tenant. Landlord shall have the right to control and operate the public portions of the Building
and the facilities furnished for common use of the tenants, in such manner as Landlord deems best for the benefit of the tenants generally. Tenant shall not permit the visit to the Premises of persons in such numbers or under such conditions as to
interfere with the use and enjoyment of the entrances, corridors, elevators and other public portions or facilities of the Building by other tenants. Tenant shall coordinate in advance with Landlord’s property management department all
deliveries to the Building so that arrangements can be made to minimize such interference. Tenant and its employees shall not use any of the parking spaces designated for use by visitors only or the roof of the Building. 
 2. Tenant shall not place any showcase, mat or other article in any common or public area of the Building. 
 3. Tenant shall not use the water and wash closets and other plumbing fixtures for any purpose other than those for which they were constructed, and
Tenant shall not place any debris, rubbish, rag or other substance therein. 
 4. Tenant shall not construct, maintain, use or operate within
their respective premises any electrical device, wiring or apparatus in connection with a loudspeaker system or other sound system without Landlord’s prior written consent. Tenant shall not construct, maintain, use or operate any such
loudspeaker or sound system available outside of the Premises. 
 5. Tenant shall not bring any bicycle, vehicle, animal, bird or pet of any
kind into the Building. Tenant shall not do or permit any cooking on the Premises, except for microwave cooking and use of coffee machines by Tenant’s employees for their own consumption. Tenant shall not install any microwave oven or coffee
machine in the Premises without Landlord’s prior written 

  

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approval of such equipment and its location within the Premises. Tenant shall not cause or permit any unusual or objectionable odor to be produced upon or
permeate from the Premises. 
 6. Tenant shall not use any space in the Building for the sale of goods to the public at large or for the sale
at auction of goods or property of any kind. 
 7. Tenant shall not place on any floor a load exceeding the floor load per square foot which
such floor was designed to carry. Landlord shall have the right to prescribe the weight, position and manner of installation of safes and other heavy items. Landlord shall have the right to repair at Tenant’s expense any damage caused by
Tenant’s moving property into or out of the Premises or due to the same being in or upon the Premises or to require Tenant to do the same. Tenant shall not receive into the Building or carry in the elevators any furniture, equipment or bulky
item except as approved by Landlord, and any such furniture, equipment and bulky item shall be delivered only through the designated delivery entrance of the Building and the designated freight elevator. Tenant shall remove promptly from sidewalks
adjacent to the Building items delivered for Tenant. 
 8. Tenant shall not place additional locks or bolts of any kind on any door or window
or make any change in any lock or locking mechanism without Landlord’s prior written approval. Tenant shall keep doors leading to a corridor or main hall closed during business hours except as such doors may be used for ingress or egress. Upon
the termination of its tenancy, Tenant shall deliver to Landlord all keys furnished to or procured by Tenant, and if any key so furnished is not delivered, then Tenant shall pay the replacement cost thereof. Tenant’s key system shall be
separate from that for the rest of the Building. 
 9. Tenant shall not install or operate in the Premises any equipment that operates on
greater than 110 volt power without obtaining Landlord’s prior written consent. Landlord may condition such consent upon Tenant’s payment of additional rent in compensation for the excess consumption of electricity or other utilities and
for the cost of any additional wiring or apparatus that may be occasioned by the operation of such equipment. Tenant shall not install any equipment of any type or nature that will or may necessitate any changes, replacements or additions to, or
changes in the use of, the water system, heating system, plumbing system, air-conditioning system or electrical system of the Premises or the Building, without obtaining Land lord’s prior written consent, which consent may be granted or
withheld in Landlord’s sole and absolute discretion. If any equipment of Tenant causes noise or vibration that may be 

  

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transmitted to such a degree as to be objectionable to Landlord or any tenant in the Building, then Landlord shall have the right to install at Tenant’s
expense vibration eliminators or other devices sufficient to reduce such noise and vibration to a level satisfactory to Landlord or to require Tenant to do the same. 
 10. Landlord may exclude from the Building any person who does not properly identify himself to the Building management or guard on duty. Landlord may require any person admitted to or leaving the Building to
register. 
 11. Tenant shall not use the Premises for lodging. 
 12. Before closing and leaving the Premises, Tenant shall turn off all lights. 
 13. Tenant shall not request Landlord’s employees to do anything outside of such employees’ regular duties without Land lord’s prior
written consent. Tenant’s special requirements will be attended to only upon application to Landlord, and any such special requirements shall be billed to Tenant in accordance with the schedule of charges maintained by Landlord from time to
time or as is agreed upon in writing in advance by Landlord and Tenant. Tenant shall not employ any employee of Landlord for any purpose whatsoever without Landlord’s prior written consent. 
 14. Canvassing, soliciting and peddling in the Building are prohibited. Tenant shall cooperate to prevent the same. 
 15. Only hand trucks equipped with rubber tires and side guards may be used in the Building. Tenant shall be responsible for loss or damage resulting
from any delivery made by or for Tenant. 
 16. Tenant shall comply with standards prescribed by Landlord for curtains, drapes, blinds,
shades, screens, lights and ceilings, including standards designed to give the Building a uniform, attractive appearance should Tenant request to change Landlord supplied blinds. 
 17. Landlord may, upon request of Tenant, waive Tenant’s compliance with any of the rules, provided that no waiver (a) shall be effective
unless signed by Landlord, (b) shall relieve Tenant from the obligation to comply with such rule in the future unless otherwise agreed in writing by Landlord, (c) granted to any tenant shall relieve any other tenant from the obligation of
complying with these rules and regulations, and (d) shall relieve 

  

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Tenant from any liability for any loss or damage resulting from Tenant’s failure to comply with any rule. 
 18. Tenant shall prohibit its employees and invitees from carrying either into the Building or upon the grounds upon which the Building is located any
pistol, rifle, shotgun, revolver or other weapon designed or intended to propel a missile of any kind. The prohibition shall not apply to any police officer, sheriff, deputy sheriff or game warden appointed pursuant to the laws of the Commonwealth
of Virginia. 
 19. Tenant shall comply with all present and future laws, orders, and regulations of all state, federal, municipal, and local
governments, departments, commissions, and boards regarding the collection, sorting, separation, and recycling of waste products, garbage, refuse, and trash. Tenant shall sort and separate such waste products, garbage, refuse, and trash into such
categories as provided by law. Each separately sorted category of waste products, garbage, refuse, and trash shall be place in separate receptacles reasonably approved by Landlord. Such separate receptacles may, at Landlord’s option, be removed
from the demised premises in accordance with a collection schedule prescribed by law. Tenant shall not generate hazardous trash or medical waste at the Premises. 
  

 Reston Lease - Commerce Park Lease Agreement Final.doc 
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