Document:

Jeffrey Allen

        District Manager

	398 South Lemon Creek, Suite Q, Walnut, CA 91789
	T 909-595-0709
	F 909-595-4479
	 E jeff-d.allen@rreef.com. www.rreef.com

 

LEASE

 

WALNUT TECH BUSINESS CENTER, LLC.

A Delaware limited liability company,

 

Landlord

 

And

 

ZHI JIAN ZHANG, an Individual

dba WEST COAST SOLAR TECH

 

Tenant

    	   

    	 

    

TABLE OF CONTENTS

 

	1	USE AND RESTRICTIONS ON USE	1
	2	TERM	1
	3	RENT	2
	4	RENT ADJUSTMENTS	2
	5	SECURITY DEPOSIT	4
	6	ALTERATIONS	4
	7	REPAIR	5
	8	LIENS	6
	9	ASSIGNMENT	6
	10	INDEMNIFICATION	7
	11	INSURANCE	7
	12	WAIVER OF SUBROGATION	8
	13	SERIVECES AND UTILITIES	8
	14	HOLDING OVER	8
	15	SUBORDINATION	8
	16	RULES AND REGUALTION	9
	17	REENTRY BY LANDLORD	9
	18	DEFAULT	9
	19	REMEDIES	10
	20	TENANT’S BANKRUPTCY OR INSOLVENCY	11
	21	QUIET ENJOYMENT	12
	22	CASUALTY	12
	23	EMINENT DOMAIN	13
	24	SALE BY LANDLORD	13
	25	ESTOPPEL CERTIFIFCATES	13
	26	SURRENDER OF PREMISES	14
	27	NOTICES	14
	28	TAXES PAYABLE BY TENANT	14
	29	RELOCATION OF TENANT	15
	30	DEFINED TERMS AND HEADINGS	15
	31	TENANT’S AUTHORITY	15
	32	FINANCIAL STATEMENTS AND CREDIT REPORTS	15
	33	COMMISSIONS	15
	34	TIME AND APPLICABLE LAW	15
	35	SUCCESSORS AND ASSIGNS	15
	36	ENTIRE AGREEMENT	15
	37	EXAMINATION NOT OPTION	16
	38	RECORDATION	16
	39	LIMITATION OF LANDLORD’S LIABILITY	16

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	40	DIRECT EXPENSES/TAXES	ADDENDUM
	41	HVAC MAINTENANCE	ADDENDUM
	42	PARKING	ADDENDUM
	43	EARLY POSSESSION	ADDENDUM

 

EXHIBIT A - FLOOR PLAN DEPICTING THE PREMISES

EXHIBIT A-1 - SITE PLAN

EXHIBIT B - INITIAL ALTERATIONS

EXHIBIT C - COMMENCEMENT DATE MEMORANDUM

EXHIBIT D - RULES AND REGULATIONS

EXHIBIT E - SIGN SPECIFICATIONS

EXHIBIT F - CONDITION OF PREMISES

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MULTI-TENANT INDUSTRIAL GROSS (BASE YEAR)
LEASE

 

REFERENCE PAGES

 

	BUILDING:	Walnut Tech Business Center
	LANDLORD:	
        WALNUT TECH BUSINESS CENTER, LLC

        A Delaware limited liability company

	LANDLORD’S ADDRESS:	
        398 S. Lemon Creek Drive, Suite Q

        Walnut, California 91789

	ADDRESS FOR PAYMENT:	Dept. 0703, Los Angeles, CA 90084-0703
	LEASE REFERENCE DATE:	May 7, 2008
	TENANT:	
        Zhi Jian Zhang, an individual

        Dba West Coast Solar Tech

	
        TENANT’S NOTICE ADDRESS

        (a) As of beginning of Term

        (b) Prior to beginning of Term(if different
	
        829 Lemon Drive

        Diamond Bar, CA 91789

        _______________________

        _______________________

	PERMISES ADDRESS:	
        398 Lemon Creek Dr, Suite A

        Walnut, CA 91789

	PREMISES RENTABLE AREA:	 Approximately 2,193 sq. ft (for outline of Premises see Exhibit A)
	USE:	General office and administration for a solar cell company, and no other purpose
	COMMENCEMENT DATE:	June 1, 2008
	TERM OF LEASE:	Approximately three (3) years, zero (0) months, and zero (0) days beginning on the Commencement Date and ending on the Termination Date. [The period from the Commencement Date to the last day of the same month is “Commencement Month”]
	TERMINATION DATE:	May 31, 2011
	DIRECT EXPENSES/TAXES:	$197.37

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

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ANNUAL RENT and MONTHLY INSTALLMENT OF RENT (Article 3):

 

	Period	Annual Rent	Monthly Installment of Rent
	From	Through
	6/1/2008	5/31/2009	$36,312.00	$3,026.00
	6/1/2009	5/31/2010	$37,404.00	$3,117.00
	6/1/2010	5/31/2010	$38,532.00	$3,211.00

 

	SECURITY DEPOSIT:	$3,870.00
	ASSIGNMENT/SUBLETTING FEE	$1,000.00
	TENANTS SIC CODE	3433

 

The Reference Pages information is incorporated into and made a
part of the Lease. In the event of any conflict between any Reference Pages information and the Lease, the Lease shall control.
This Lease includes Exhibits A through F, all of which are made a part of this Lease.

 

	LANDLORD:	TENANT:
	WALNUT TECH BUSINESS CENTER, LLC a Delaware limited liability company	ZHI JIAN ZHANG, an individual dba WEST COAST SOLAR TECH
	By: RREEF Management Company, a Delaware corporation	 
	 By: /s/Jeffrey Allen	 By: /s/Zhi Jian Zhang
	Title: District Manager	Title: an individual
	Dated: 5/15/08	Dated: 05/13/08

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LEASE

 

By this Lease Landlord leases to Tenant and
Tenant leases from Landlord the Premises in the Building as set forth and described on the Reference Pages. The Premises are depicted
on the floor plan attached hereto as Exhibit A, and the Building is depicted on the site plan attached hereto as Exhibit A-
I. The Reference Pages, including all terms defined thereon, are incorporated as part of this Lease.

 

1.                  
USE AND RESTRICTIONS ON USE. 

 

1.1               
The Premises are to be used solely for the purposes set forth on the Reference Pages. Tenant
shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights
of other tenants or occupants of the Building or injure, annoy, or disturb them, or allow the Premises to be used for any improper,
immoral, unlawful, or objectionable purpose, or commit any waste. Tenant shall not do, permit or suffer in, on, or about the Premises
the sale of any alcoholic liquor without the written consent of Landlord first obtained. Tenant shall comply with all governmental
laws, ordinances and regulations applicable to the use of the Premises and its occupancy and shall promptly comply with all governmental
orders and directions for the correction, prevention and abatement of any violations in the Building or appurtenant land, caused
or permitted by, or resulting from the specific use by, Tenant, or in or upon, or in connection with, the Premises, all at Tenant's
sole expense. Tenant shall not do or permit anything to be done on or about the Premises or bring or keep anything into the Premises
which will in any way increase the rate of, invalidate or prevent the procuring of any insurance protecting against loss or damage
to the Building or any of its contents by fire or other casualty or against liability for damage to property or injury to persons
in or about the Building or any part thereof. 

 

1.2               
Tenant shall not, and shall not direct, suffer or permit any of its agents, contractors, employees,
licensees or invitees (collectively, the "Tenant Entities") to at any time handle, use, manufacture, store or dispose
of in or about the Premises or the Building any (collectively "Hazardous Materials") flammables, explosives, radioactive
materials, hazardous wastes or materials, toxic wastes or materials, or other similar substances, petroleum products or derivatives
or any substance subject to regulation by or under any federal, state and local laws and ordinances relating to the protection
of the environment or the keeping, use or disposition of environmentally hazardous materials, substances, or wastes, presently
in effect or hereafter adopted, all amendments to any of them, and all rules and regulations issued pursuant to any of such laws
or ordinances (collectively "Environmental Laws"), nor shall Tenant suffer or permit any Hazardous Materials to be used
in any manner not fully in compliance with all Environmental Laws, in the Premises or the Building and appurtenant land or allow
the environment to become contaminated with any Hazardous Materials. notwithstanding the foregoing, Tenant may handle, store, use
or dispose of products containing small quantities of Hazardous Materials (such as aerosol cans containing insecticides, toner
for copiers, paints, paint remover and the like) to the extent customary and necessary for the use of the Premises for general
office purposes: provided that Tenant shall always handle, store, use, and dispose of any such Hazardous Materials in a safe and
lawful manner and never allow such Hazardous Materials to contaminate the Premises, Building and appurtenant land or the environment.
Tenant shall protect, defend, indemnify and hold each and all of the Landlord Entities (as defined in Article 30) harmless from
and against any and all loss, claims, liability or costs (including court costs and attorney's fees) incurred by reason of any
actual or asserted failure of Tenant to fully comply with all applicable Environmental Laws, or the presence, handling, use or
disposition in or from the Premises of any Hazardous Materials by Tenant or any Tenant Entity (even though permissible under all
applicable Environmental Laws or the provisions of this Lease). or by reason of any actual or asserted failure of Tenant to keep,
observe, or perform any provision of this Section 1.2. 

 

1.3               
Tenant and the Tenant Entities will be entitled to the non-exclusive use of the common areas
of the Building as they exist from time to time during the Term, including the parking facilities, subject to Landlord's rules
and regulations regarding such use. However, in no event will Tenant or the Tenant Entities park more vehicles in the parking facilities
than Tenant's Proportionate Share of the total parking spaces available for common use. The foregoing shall not be deemed to provide
Tenant with an exclusive right to any parking spaces or any guaranty of the availability of any particular parking spaces or any
specific number of parking spaces. 

 

2.                  
TERM

 

2.1               
The Term of this Lease shall begin on the date ("Commencement Date") which shall
be the later of the Scheduled Commencement Date as shown on the Reference Pages and the date that Landlord shall tender possession
of the Premises to Tenant, and shall terminate on the date as shown on the Reference Pages ("Termination Date"), unless
sooner terminated by the provisions of this Lease. Landlord shall tender possession of the Premises with all the work, if any,
to be performed by Landlord pursuant to Exhibit B to this Lease substantially completed. Tenant shall deliver a punch list
of items not completed within thirty (30) days after Landlord tenders possession of the Premises and Landlord agrees to proceed
with due diligence to perform its obligations regarding such items. 

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2.2               
Tenant agrees that in the event of the inability of Landlord to deliver possession of the
Premises on the Scheduled Commencement Date for any reason, Landlord shall not be liable for any damage resulting from such inability,
but Tenant shall not be liable for any rent until the time when Landlord can, after notice to Tenant, deliver possession of the
Premises to Tenant. No such failure to give possession on the Scheduled Commencement Date shall affect the other obligations of
Tenant under this Lease, except that if Landlord is unable to deliver possession of the Premises within one hundred twenty (120)
days after the Scheduled Commencement Date (other than as a result of strikes, shortages of materials, holdover tenancies or similar
matters beyond the reasonable control of Landlord and Tenant is notified by Landlord in writing as to such delay), Tenant shall
have the option to terminate this Lease unless said delay is as a result of: (a) Tenant's failure to agree to plans and specifications
and/or construction cost estimates or bids; (b) Tenant's request for materials, finishes or installations other than Landlord's
standard except those, if any, that Landlord shall have expressly agreed to furnish without extension of time agreed by Landlord;
(c) Tenant's change in any plans or specifications; or, (d) performance or completion by a party employed by Tenant (each of the
foregoing, a "Tenant Delay"). If any delay is the result of a Tenant Delay, the Commencement Date and the payment of
rent under this Lease shall be accelerated by the number of days of such Tenant Delay, 

2.3               
In the event Landlord permits Tenant, or any agent, employee or contractor of Tenant. to enter,
use or occupy the Premises prior to the Commencement Date, such entry, use or occupancy shall be subject to all the provisions
of this Lease other than the payment of rent, including, without limitation, Tenant's compliance with the insurance requirements
of Article II. Said early possession shall not advance the Termination Date, 

 

3.                  
RENT.

 

3.1               
Tenant agrees to pay to Landlord the Annual Rent in effect from time to time by paying the
Monthly Installment of Rent then in effect on or before the first day of each full calendar month during the Term, except that
the first full month's rent shall be paid upon the execution of this Lease, The Monthly Installment of Rent in effect at any time
shall be one-twelfth (1/12) of the Annual Rent in effect at such time, Rent for any period during the Term which is less than a
full month shall be a prorated portion of the Monthly Installment of Rent based upon the number of days in such month, Said rent
shall be paid to Landlord, without deduction or offset and without notice or demand, at the Rent Payment Address, as set forth
on the Reference Pages. or to such other person or at such other place as Landlord may from time to time designate in writing.
If an Event of Default occurs, Landlord may require by notice to Tenant that all subsequent rent payments be made by an automatic
payment from Tenant's bank account to Landlord's account, without cost to Landlord. Tenant must implement such automatic payment
system prior to the next scheduled rent payment or within ten (10) days after Landlord's notice, whichever is later. Unless specified
in this Lease to the contrary, all amounts and sums payable by Tenant to Landlord pursuant to this Lease shall be deemed additional
rent. 

3.2               
Tenant recognizes that late payment of any rent or other sum due under this Lease will result
in administrative expense to Landlord, the extent of which additional expense is extremely difficult and economically impractical
to ascertain. Tenant therefore agrees that if rent or any other sum is not paid when due and payable pursuant to this Lease, a
late charge shall be imposed in an amount equal to the greater of: (a) Fifty Dollars ($50,00), or (b) six percent (6%) of the unpaid
rent or other payment. The amount of the late charge to be paid by Tenant shall be reassessed and added to Tenant's obligation
for each successive month until paid. The provisions of this Section 3.2 in no way relieve Tenant of the obligation to pay rent
or other payments on or before the date on which they are due, nor do the terms of this Section 3.2 in any way affect Landlord's
remedies pursuant to Article 19 of this Lease in the event said rent or other payment is unpaid after date due. 

 

4.                  
RENT ADJUSTMENTS

 

4.1               
For the purpose of this Article 4, the following terms are defined as follows: 

4.1.1          
Lease Year: Each fiscal year (as determined by Landlord from time to time) falling
partly or wholly within the Term. 

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4.1.2          
Expenses: All costs of operation, maintenance, repair, replacement and management of
the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing
any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance
with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water
and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably
necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof;
utility costs, including, but not limited to, the cost of heat, light, power, steam, gas; waste disposal; the cost of janitorial
services; the cost of security and alarm services (including any central station signaling system); costs of cleaning, repairing,
replacing and maintaining the common areas, including parking and landscaping, window cleaning costs; labor costs; costs and expenses
of managing the Building including management and/or administrative fees; air conditioning maintenance costs; elevator maintenance
fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental
and leasing costs; purchase costs of equipment; current rental and leasing costs of items which would be capital items if purchased;
tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal
fees; any sales, use or service taxes incurred in connection therewith. In addition, Landlord shall be entitled to recover, as
additional rent (which, along with any other capital expenditures constituting Expenses, Landlord may either include in Expenses
or cause to be billed to Tenant along with Expenses and Taxes but as a separate item), Tenant's Proportionate Share of: (i) an
allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) the
cost of fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required
under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed;
but the costs described in this sentence shall be amortized over the reasonable life of such expenditures in accordance with such
reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting
principles, with interest on the unamortized amount at one percent (1%) in excess of the Wall Street Journal prime lending rate
announced from time to time. Expenses shall not include depreciation or amortization of the Building or equipment in the Building
except as provided herein, loan principal payments, costs of alterations of tenants' premises, leasing commissions, interest expenses
on long-term borrowings or advertising costs. 

 

4.1.3          
Taxes: Real estate taxes and any other taxes, charges and assessments which are levied with
respect to the Building or the land appurtenant to the Building, or with respect to any improvements, fixtures and equipment or
other property of Landlord, real or personal, located in the Building and used in connection with the operation of the Building
and said land, any payments to any ground lessor in reimbursement of tax payments made by such lessor; and all fees, expenses and
costs incurred by Landlord in investigating, protesting, contesting or in any way seeking to reduce or avoid increase in any assessments,
levies or the tax rate pertaining to any Taxes to be paid by Landlord in any Lease Year. Taxes shall not include any corporate
franchise, or estate, inheritance or net income tax, or tax imposed upon any transfer by Landlord of its interest in this Lease
or the Building or any taxes to be paid by Tenant pursuant to Article 28. 

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4.6               
If the Commencement Date is other than January 1 or if the Termination Date is other than
December 31, Tenant's liability for Expenses and Taxes for the Lease Year in which said Date occurs shall be prorated based upon
a three hundred sixty-five (365) day year. 

 

5.                  
SECURITY DEPOSIT. Tenant shall deposit the Security
Deposit with Landlord upon the execution of this Lease, Said sum shall be held by Landlord as security for the faithful performance
by Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant and not as an advance rental
deposit or as a measure of Landlord's damage in case of Tenant's default. If Tenant defaults with respect to any provision of this
Lease, Landlord may use any part of the Security Deposit for the payment of any rent or any other sum in default, or for the payment
of any amount which Landlord may spend or become obligated to spend by reason of Ten ant's default, or to compensate Landlord for
any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion is so used, Tenant shall within
five (5) days after written demand therefor, deposit with Landlord an amount sufficient to restore the Security Deposit to its
original amount and Tenant's failure to do so shall be a material breach of this Lease. Except to such extent, ifany, as shall
be required by law, Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall
not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed
by it, the Security Deposit or any balance thereof shall be returned to Tenant at such time after termination of this Lease when
Landlord shall have determined that all of Ten ant's obligations under this Lease have been fulfilled, Notwithstanding anything
to the contrary contained herein or in Article 23 hereof, Tenant hereby waives the provisions of Section 1950.7 of the California
Civil Code, or any similar or successor Regulations or other laws now or hereinafter in effect. 

 

6.                  
ALTERATIONS. 

 

6.1               
Except for those, if any, specifically provided for in Exhibit B to this Lease, Tenant shall
not make or suffer to be made any alterations, additions, or improvements, including, but not limited to, the attachment of any
fixtures or equipment in, on, or to the Premises or any part thereof or the making of any improvements as required by Article 7,
without the prior written consent of Landlord, When applying for such consent, Tenant shall, if requested by Landlord, furnish
complete plans and specifications for such alterations, additions and improvements. Landlord's consent shall not be unreasonably
withheld with respect to alterations which (i) are not structural in nature, (ii) are not visible from the exterior of the Building,
(iii) do not affect or require modification of the Building's electrical, mechanical, plumbing, HVAC or other systems, and (iv)
in aggregate do not cost more than $5,00 per rentable square foot of that portion of the Premises affected by the alterations in
question. 

6.2               
In the event Landlord consents to the making of any such alteration, addition or improvement
by Tenant, the same shall be made by using either Landlord's contractor or a contractor reasonably approved by Landlord, in either
event at Tenant's sole cost and expense. If Tenant shall employ any contractor other than Landlord's contractor and such other
contractor or any subcontractor of such other contractor shall employ any non-union labor or supplier, Tenant shall be responsible
for and hold Landlord harmless from any and all delays, damages and extra costs suffered by Landlord as a result of any dispute
with any labor unions concerning the wage, hours, terms or conditions of the employment of any such labor. In any event Landlord
may charge Tenant a construction management fee not to exceed five percent (5%) of the cost of such work to cover its overhead
as it relates to such proposed work, plus third-party costs actually incurred by Landlord in connection with the proposed work
and the design thereof, with all such amounts being due five (5) days after Landlord's demand. 

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6.3               
All alterations, additions or improvements proposed by Tenant shall be constructed in accordance
with all government laws, ordinances, rules and regulations, using Building standard materials where applicable, and Tenant shall,
prior to construction, provide the additional insurance required under Article 11 in such case, and also all such assurances to
Landlord as Landlord shall reasonably require to assure payment of the costs thereof, including but not limited to, notices of
non-responsibility, waivers of lien, surety company performance bonds and funded construction escrows and to protect Landlord and
the Building and appurtenant land against any loss from any mechanic's, materialmen's or other liens. Tenant shall pay in addition
to any sums due pursuant to Article 4, any increase in real estate taxes attributable to any such alteration, addition or improvement
for so long, during the Term, as such increase is ascertainable; at Landlord's election said sums shall be paid in the same way
as sums due under Article 4. Landlord may, as a condition to its consent to any particular alterations or improvements, require
Tenant to deposit with Landlord the amount reasonably estimated by Landlord as sufficient to cover the cost of removing such alterations
or improvements and restoring the Premises, to the extent required under Section 26.2 

 

7.                  
REPAIR.

 

7.1               
Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the
Premises, except as specified in Exhibit B if attached to this Lease and except that Landlord shall repair and maintain the structural
portions of the roof, foundation and walls of the Building. By taking possession of the Premises, Tenant accepts them as being
in good order, condition and repair and in the condition in which Landlord is obligated to deliver them, except as set forth in
the punch list to be delivered pursuant to Section 2.1. It is hereby understood and agreed that no representations respecting the
condition of the Premises or the Building have been made by Landlord to Tenant, except as specifically set forth in this Lease.
Landlord shall not be liable for any failure to make any repairs or to perform any maintenance unless such failure shall persist
for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant. 

7.2               
Tenant shall at its own cost and expense keep and maintain all parts of the Premises and such
portion of the Building and improvements as are within the exclusive control of Tenant in good condition, promptly making all necessary
repairs and replacements, whether ordinary or extraordinary, With materials and workmanship of the same character, kind and quality
as the original (including, but not limited to, repair and replacement of all fixtures installed by Tenant, water heaters serving
the Premises, windows, glass and plate glass, doors, exterior stairs, skylights, any special office entries, interior walls and
finish work, floors and floor coverings, heating and air conditioning systems serving the Premises, electrical systems and fixtures,
sprinkler systems, dock boards, truck doors, dock bumpers, plumbing work and fixtures, and performance of regular removal of trash
and debris). Tenant as part of its obligations hereunder shall keep the Premises in a clean and sanitary condition. Tenant will,
as far as possible keep all such parts of the Premises from deterioration due to ordinary wear and from falling temporarily out
of repair, and upon termination of this Lease in any way Tenant will yield up the Premises to Landlord in good condition and repair,
loss by fire or other casualty excepted (but not excepting any damage to glass). Tenant shall, at its own cost and expense, repair
any damage to the Premises or the Building resulting from and/or caused in whole or in part by the negligence or misconduct of
Tenant, its agents, employees, contractors, invitees, or any other person entering upon the Premises as a result of Tenant's business
activities or caused by Tenant's default hereunder. 

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7.3               
Except as provided in Article 22, there shall be no abatement of rent and no liability of
Landlord by reason of any injury to or interference with Tenant's business arising from the making of any repairs, alterations
or improvements in or to any portion of the Building or the Premises or to fixtures, appurtenances and equipment in the Building.
Tenant hereby waives any and all rights under and benefits of subsection I of Section 1932 and Sections 1941 and 1942 of the California
Civil Code, or any similar or successor Regulations or other laws now or hereinafter in effect.

 

7.4               
Landlord shall coordinate any repairs and other maintenance of any railroad tracks serving
the Building and, if Tenant uses such rail tracks, Tenant shall reimburse Landlord or the railroad company from time to time upon
demand, as additional rent, for its share of the costs of such repair and maintenance and for any other sums specified in any agreement
to which Landlord or Tenant is a party respecting such tracks, such costs to be borne proportionately by all tenants in the Building
using such rail tracks, based upon the actual number of rail cars shipped and received by such tenant during each calendar year
during the Term. 

 

8.                  
LIENS. Tenant shall keep the Premises, the Building
and appurtenant land and Tenant's leasehold interest in the Premises free from any liens arising out of any services, work or materials
performed, furnished, or contracted for by Tenant, or obligations incurred by Tenant. In the event that Tenant fails, within ten
(10) days following the imposition of any such lien, to either cause the same to be released of record or provide Landlord with
insurance against the same issued by a major title insurance company or such other protection against the same as Landlord shall
accept (such failure to constitute an Event of Default), Landlord shall have the right to cause the same to be released by such
means as it shall deem proper, including payment of the claim giving rise to such lien, All such sums paid by Landlord and all
expenses incurred by it in connection therewith shall be payable to it by Tenant within five (5) days Landlord's demand. 

 

9.                  
ASSIGNMENT AND SUBLETTING. 

 

9.1               
Tenant shall not have the right to assign or pledge this Lease or to sublet the whole or any
part of the Premises whether voluntarily or by operation of law, or permit the use or occupancy of the Premises by anyone other
than Tenant, and shall not make, suffer or permit such assignment, subleasing or occupancy without the prior written consent of
Landlord, such consent not to be unreasonably withheld, and said restrictions shall be binding upon any and all assignees of the
Lease and subtenants of the Premises. In the event Tenant desires to sublet, or permit such occupancy of, the Premises, or any
portion thereof, or assign this Lease, Tenant shall give written notice thereof to Landlord at least sixty (60) days but no more
than one hundred twenty (120) days prior to the proposed commencement date of such subletting or assignment, which notice shall
set forth the name of the proposed subtenant or assignee, the relevant terms of any sublease or assignment and copies of financial
reports and other relevant financial information of the proposed subtenant or assignee. 

9.2               
Notwithstanding any assignment or subletting, permitted or otherwise, Tenant shall at all
times remain directly, primarily and fully responsible and liable for the payment of the rent specified in this Lease and for compliance
with all of its other obligations under the terms, provisions and covenants of this Lease. Upon the occurrence of an Event of Default,
if the Premises or any part of them are then assigned or sublet, Landlord, in addition to any other remedies provided in this Lease
or provided by law, may, at its option, collect directly from such assignee or subtenant all rents due and becoming due to Tenant
under such assignment or sublease and apply such rent against any sums due to Landlord from Tenant under this Lease, and no such
collection shall be construed to constitute a novation or release of Tenant from the further performance of Ten ant's obligations
under this Lease. 

 

9.3               
In addition to Landlord's right to approve of any subtenant or assignee, Landlord shall have
the option, in its sole discretion. in the event of any proposed subletting or assignment, to terminate this Lease, or in the case
of a proposed subletting of less than the entire Premises, to recapture the portion of the Premises to be sublet, as of the date
the subletting or assignment is to be effective. The option shall be exercised, if at all, by Landlord giving Tenant written notice
given by Landlord to Tenant within thirty (30) days following Landlord's receipt of Tenant's written notice as required above.
However, if Tenant notifies Landlord, within five (5) days after receipt of Landlord's termination notice, that Tenant is rescinding
its proposed assignment or sublease, the termination notice shall be void and the Lease shall continue in full force and effect.
If this Lease shall be terminated with respect to the entire Premises pursuant to this Section, the Term of this Lease shall end
on the date stated in Tenant's notice as the effective date of the sublease or assignment as if that date had been originally fixed
in this Lease for the expiration of the Term. If Landlord recaptures under this Section only a portion of the Premises, the rent
to be paid from time to time during the unexpired Term shall abate proportionately based on the proportion by which the approximate
square footage of the remaining portion of the Premises shall be less than that of the Premises as of the date immediately prior
to such recapture: Tenant shall, at Tenant's own cost and expense, discharge in full any outstanding commission obligation which
may be due and owing as a result of any proposed assignment or subletting, whether or not the Premises are recaptured pursuant
to this Section 9.3 and rented by Landlord to the proposed tenant or any other tenant. 

9.4               
In the event that Tenant sells, sublets, assigns or transfers this Lease, Tenant shall pay
to Landlord as additional rent an amount equal to one hundred percent (100%) of any Increased Rent (as defined below), less the
Costs Component (as defined below), when and as such Increased Rent is received by Tenant. As used in this Section, "Increased
Rent" shall mean the excess of (i) all rent and other consideration which Tenant is entitled to receive by reason of any sale,
sublease, assignment or other transfer of this Lease, over (ii) the rent otherwise payable by Tenant under this Lease at such time.
For purposes of the foregoing, any consideration received by Tenant in form other than cash shall be valued at its fair market
value as determined by Landlord in good faith. The "Costs Component" is that amount which, if paid monthly, would fully
amortize on a straight-line basis, over the entire period for which Tenant is to receive Increased Rent, the reasonable costs incurred
by Tenant for leasing commissions and tenant improvements in connection with such sublease, assignment or other transfer. 

    	11

    	 

    

 

9.5               
Notwithstanding any other provision hereof, it shall be considered reasonable for Landlord
to withhold its consent to any assignment of this Lease or sublease of any portion of the Premises if at the time of either Tenant's
notice of the proposed assignment or sublease or the proposed commencement date thereof, there shall exist any uncured default
of Tenant or matter which will become a default of Ten ant with passage of time unless cured, or if the proposed assignee or sublessee
is an entity: (a) with which Landlord is already in negotiation; (b) is already an occupant of the Building unless Landlord is
unable to provide the amount of space required by such occupant; (c) is a governmental agency; (d) is incompatible with the character
of occupancy of the Building; (e) with which the payment for the sublease or assignment is determined in whole or in part based
upon its net income or profits; or (f) would subject the Premises to a use which would: (i) involve increased personnel or wear
upon the Building; (ii) violate any exclusive right granted to another tenant of the Building; (iii) require any addition to or
modification of the Premises or the Building in order to comply with building code or other governmental requirements; or, (iv)
involve a violation of Section 1.2. Tenant expressly agrees that for the purposes of any statutory or other requirement of reasonableness
on the part of Landlord, Landlord's refusal to consent to any assignment or sublease for any of the reasons described in this Section
9.5, shall be conclusively deemed to be reasonable. 

9.6               
Upon any request to assign or sublet, Tenant will pay to Landlord the Assignment/Subletting
Fee plus, on demand, a sum equal to all of Landlord's costs, including reasonable attorney's fees, incurred in investigating and
considering any proposed or purported assignment or pledge of this Lease or sublease of any of the Premises, regardless of whether
Landlord shall consent to, refuse consent, or determine that Landlord's consent is not required for, such assignment, pledge or
sublease. Any purported sale, assignment, mortgage, transfer of this Lease or subletting which does not comply with the provisions
of this Article 9 shall be void. 

9.7               
If Tenant is a corporation, limited liability company, partnership or trust, any transfer
or transfers of or change or changes within any twelve (12) month period in the number of the outstanding voting shares of the
corporation or limited liability company, the general partnership interests in the partnership or the identity of the persons or
entities controlling the activities of such partnership or trust resulting in the persons or entities owning or controlling a majority
of such shares, partnership interests or activities of such partnership or trust at the beginning of such period no longer having
such ownership or control shall be regarded as equivalent to an assignment of this Lease to the persons or entities acquiring such
ownership or control and shall be subject to all the provisions of this Article 9 to the same extent and for all intents and purposes
as though such an assignment. 

 

 

10.               
INDEMNIFICATION. None of the Landlord Entities shall be liable and Tenant hereby waives
all claims against them for any damage to any property or any injury to any person in or about the Premises or the Building by
or from any cause whatsoever (including without limiting the foregoing, rain or water leakage of any character from the roof, windows,
walls, basement, pipes, plumbing works or appliances, the Building not being in good condition or repair, gas, fire, oil, electricity
or theft), except to the extent caused by or arising from the gross negligence or willful misconduct of Landlord or its agents,
employees or contractors. Tenant shall protect, indemnify and hold the Landlord Entities harmless from and against any and all
loss, claims, liability or costs (including court costs and attorney's fees) incurred by reason of (a) any damage to any property
(including but not limited to property of any Landlord Entity) or any injury (including hut not limited to death) to any person
occurring in, on or about the Premises or the Building to the extent that such injury or damage shall be caused by or arise from
any actual or alleged act, neglect, fault, or omission by or of Ten ant or any Tenant Entity to meet any standards imposed by any
duty with respect to the injury or damage; (b) the conduct or management of any work or thing whatsoever done by the Tenant in
or about the Premises or from transactions of the Tenant concerning the Premises; (c) Tenant's failure to comply with any and all
governmental laws, ordinances and regulations applicable to the condition or use of the Premises or its occupancy; or (d) any breach
or default on the part of Tenant in the performance of any covenant or agreement on the part of the Tenant to be performed pursuant
to this Lease. The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability
accruing prior to such termination. 

 

11.               
INSURANCE.

11.1           
Tenant shall keep in force throughout the Term: (a) a Commercial General Liability insurance
policy or policies to protect the Landlord Entities against any liability to the public or to any invitee of Tenant or a Landlord
Entity incidental to the use of or resulting from any accident occurring in or upon the Premises with a limit of not less than
$1,000,000 per occurrence and not less than $2,000,000 in the annual aggregate, or such larger amount as Landlord may prudently
require from time to time, covering bodily injury and property damage liability and $1,000,000 products/completed operations aggregate;
(b) Business Auto Liability covering owned, non-owned and hired vehicles with a limit of not less than $1,000,000 per accident:
(c) insurance protecting against liability under Worker's Compensation Laws with limits at least as required by statute with Employers
Liability with limits of S500,000 each accident, S500,000 disease policy limit, S500,000 disease--each employee: (d) All Risk or
Special Form coverage protecting Tenant against loss of or damage to Tenant's alterations, additions, improvements, carpeting,
floor coverings, panelings, decorations, fixtures, inventory and other business personal property situated in or about the Premises
to the full replacement value of the property so insured; and, (e) Business Interruption Insurance with limit of liability representing
loss of at least approximately six (6) months of income. 

    	12

    	 

    

11.2           
The aforesaid policies shall (a) be provided at Tenant's expense: (b) name the Landlord Entities
as additional insureds (General Liability) and loss payee (Property-Special Form); (c) be issued by an insurance company with a
minimum Best's rating of"A:VII" during the Term; and (d) provide that said insurance shall not be canceled unless thirty
(30) days prior written notice (ten days for non-payment of premium) shall have been given to Landlord; a certificate of Liability
insurance on ACORD Form 25 and a certificate of Property insurance on ACORD Form 27 shall be delivered to Landlord by Tenant upon
the Commencement Date and at least thirty (30) days prior to each renewal of said insurance. 

11.3           
Whenever Tenant shall undertake any alterations, additions or improvements in, to or about
the Premises ("Work") the aforesaid insurance protection must extend to and include injuries to persons and damage to
property arising in connection with such Work, without limitation including liability under any applicable structural work act,
and such other insurance as Landlord shall require; and the policies of or certificates evidencing such insurance must be delivered
to Landlord prior to the commencement of any such Work. 

 

12.               
WAIVER OF SUBROGATION. So long as their respective insurers so permit, Tenant and Landlord
hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage, All
Risks or other insurance now or hereafter existing for the benefit of the respective party but only to the extent of the net insurance
proceeds payable under such policies. Each party shall obtain any special endorsements required by their insurer to evidence compliance
with the aforementioned waiver. 

 

13.               
SERVICES AND UTILITIES. Tenant shall pay for all water, gas, heat, light, power, telephone,
sewer, sprinkler system charges and other utilities and services used on or from the Premises, together with any taxes, penalties,
and surcharges or the like pertaining thereto and any maintenance charges for utilities. Tenant shall furnish all electric light
bulbs, tubes and ballasts, battery packs for emergency lighting and fire extinguishers. If any such services are not separately
metered to Tenant, Tenant shall pay such proportion of all charges jointly metered with other premises as determined by Landlord,
in its sole discretion, to be reasonable. Any such charges paid by Landlord and assessed against Tenant shall be immediately payable
to Landlord on demand and shall be additional rent hereunder. Tenant will not, without the written consent of Landlord, contract
with a utility provider to service the Premises with any utility, including, but not limited to, telecommunications, electricity,
water, sewer or gas, which is not previously providing such service to other tenants in the Building. Landlord shall in no event
be liable for any interruption or failure of utility services on or to the Premises. 

 

14.               
HOLDING OVER. Tenant shall pay Landlord for each day Tenant retains possession of the
Premises or part of them after termination of this Lease by lapse of time or otherwise at the rate ("Holdover Rate")
which shall be Two Hundred Percent (200%) of the greater of (a) the amount of the Annual Rent for the last period prior to the
date of such termination plus all Rent Adjustments under Article 4; and (b) the then market rental value of the Premises as determined
by Landlord assuming a new lease of the Premises of the then usual duration and other terms, in either case, prorated on a daily
basis, and also pay all damages sustained by Landlord by reason of such retention. If Landlord gives notice to Tenant of Landlord's
election to such effect, such holding over shall constitute renewal of this Lease for a period from month to month or one (1) year.
whichever shall be specified in such notice, in either case at the Holdover Rate, but if the Landlord does not so elect, no such
renewal shall result notwithstanding acceptance by Landlord of any sums due hereunder after such termination; and instead, a tenancy
at sufferance at the Holdover Rate shall be deemed to have been created. In any event, no provision of this Article 14 shall be
deemed to waive Landlord’s right of reentry or any other right under this Lease or at law. 

 

15.               
SUBORDINATION. Without the necessity of any additional document being executed by Tenant
for the purpose of effecting a subordination, this Lease shall be subject and subordinate at all times to ground or underlying
leases and to the lien of any mortgages or deeds of trust now or hereafter placed on, against or affecting the Building, Landlord's
interest or estate in the Building. or any ground or underlying lease; provided, however, that if the lessor, mortgagee, trustee,
or holder of any such mortgage or deed of trust elects to have Tenant's interest in this Lease he superior to any such instrument,
then. by notice to Tenant. this Lease shall be deemed superior, whether this Lease was executed before or after said instrument.
Nonvithstanding the foregoing, Tenant covenants and agrees to execute and deliver within ten (10) days of Landlord's request such
further instruments evidencing such subordination or superiority of this Lease as may be required by Landlord.

 

16.               
RULES AND REGULATIONS. Tenant shall faithfully observe and comply with all the rules
and regulations as set forth in Exhibit D to this Lease and all reasonable and non-discriminatory modifications of and additions
to them from time to time put into effect by Landlord. Landlord shall not be responsible to Tenant for the non-performance by any
other tenant or occupant of the Building of any such rules and regulations. 

 

17.               
REENTRY BY LANDLORD. 

 

17.1           
Landlord reserves and shall at all times have the right to re-enter the Premises to inspect
the same, to show said Premises to prospective purchasers, mortgagees or tenants, and to alter, improve or repair the Premises
and any portion of the Building, without abatement of rent, and may for that purpose erect, use and maintain scaffolding, pipes,
conduits and other necessary structures and open any wall, ceiling or floor in and through the Building and Premises where reasonably
required by the character of the work to be performed, provided entrance to the Premises shall not be blocked thereby, and further
provided that the business of Tenant shall not be interfered with unreasonably. Landlord shall have the right at any time to change
the arrangement and/or locations of entrances, or passageways, doors and doorways, and corridors, windows, elevators, stairs, toilets
or other public parts of the Building and to change the name, number or designation by which the Building is commonly known. In
the event that Landlord damages any portion of any wall or wall covering, ceiling, or floor or floor covering \\'ithin the Premises,
Landlord shall repair or replace the damaged portion to match the original as nearly as commercially reasonable but shall not be
required to repair or replace more than the portion actually damaged. Tenant hereby waives any claim for damages for any injury
or inconvenience to or interference with Tenant's business, any loss of occupancy or quiet enjoyment of the Premises, and any other
loss occasioned by any action of Landlord authorized by this Article 17. 

    	13

    	 

    

 

17.2           
Landlord shall have the right to use any and all means which Landlord may deem proper to open
said doors in an emergency to obtain entry to any portion of the Premises. Landlord is authorized to gain access by such means
as Landlord shall elect and the cost of repairing any damage occurring in doing so shall be borne by Tenant and paid to Landlord
within five (5) days of Landlord's demand. 

 

18.               
DEFAULT.

 

18.1           
Except as otherwise provided in Article 20. the following events shall be deemed to be Events
of Default under this Lease: 

18.1.1      
Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord under
this Lease, whether such sum be any installment of the rent reserved by this Lease, any other amount treated as additional rent
under this Lease. or any other payment or reimbursement to Landlord required by this Lease, whether or not treated as additional
rent under this Lease, and such failure shall continue for a period of five (5) days after written notice that such payment was
not made when due, but if any such notice shall be given, for the twelve (12) month period commencing with the date of such notice.
the failure to pay within five (5) days after due any additional sum of money becoming due to be paid to Landlord under this Lease
during such period shall be an Event of Default, without notice. The notice required pursuant to this Section 18.1.1 shall replace
rather than supplement any statutory notice required under California Code of Civil Procedure Section 1161 or any similar or successor
statute. 

18.1.2      
Tenant shall fail to comply with any term, provision or covenant of this Lease which is not
provided for in another Section of this Article and shall not cure such failure within twenty (20) days (forthwith. if the failure
involves a hazardous condition) after written notice of such failure to Tenant provided, however, that such failure shall not be
an event of default if such failure could not reasonably be cured during such twenty (20) day period, Tenant has commenced the
cure within such twenty (20) day period and thereafter is diligently pursuing such cure to completion, but the total aggregate
cure period shall not exceed ninety (90) days. 

18.1.3      
Tenant shall fail to vacate the Premises immediately upon termination of this Lease, by lapse
of time or otherwise. or upon termination of Tenants right to possession only. 

 

18.1.4      
Tenant shall become insolvent, admit in writing its inability to pay its debts generally as
they become due. file a petition in bankruptcy or a petition to take advantage of any insolvency statute, make an assignment for
the benefit of creditors, make a transfer in fraud of creditors, apply for or consent to the appointment of a receiver of itself
or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization or arrangement under
the federal bankruptcy laws, as now in effect or hereafter amended, or any other applicable law or statute of the United States
or any state thereof. 

    	14

    	 

    

18.1.5      
A court of competent jurisdiction shall enter an order, judgment or decree adjudicating Tenant
bankrupt, or appointing a receiver of Ten ant, or of the whole or any substantial part of its property, without the consent of
Tenant, or approving a petition filed against Tenant seeking reorganization or arrangement of Tenant under the bankruptcy laws
of the United States, as now in effect or hereafter amended, or any state thereof, and such order, judgment or decree shall not
be vacated or set aside or stayed within sixty (60) days from the date of entry thereof. 

 

19.               
REMEDIES.

 

19.1           
Upon the occurrence of any Event or Events of Default under this Lease, whether enumerated
in Article 18 or not. Landlord shall have the option to pursue anyone or more of the following remedies without any notice (except
as expressly prescribed herein) or demand whatsoever (and without limiting the generality of the foregoing, Tenant hereby specifically
waives notice and demand for payment of rent or other obligations and waives any and all other notices or demand requirements imposed
by applicable law): 

19.1.1      
Terminate this Lease and Tenant's right to possession of the Premises and recover from Tenant
an award of damages equal to the sum of the following: of termination: 

19.1.1.1 
The Worth at the Time of Award of the unpaid rent which had been earned at the time 

19.1.1.2 
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 rent loss that Tenant affirmatively proves could have
been reasonably avoided; 

19.1.1.3 
The Worth at the Time of Award of the amount by which the unpaid rent for the balance of the
Term after the time of award exceeds the amount of such rent loss that Tenant affirmatively proves could be reasonably avoided;

19.1.1.4 
Any other amount necessary to compensate Landlord for all the detriment either proximately
caused by Tenant's failure to perform Tenant's obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom; and 

19.1.1.5 
All such other amounts in addition to or in lieu of the foregoing as may be permitted from
time to time under applicable law. 

The "Worth at the Time of Award" of the amounts referred
to in parts 19.1.1.1 and 19.1.1.2 above, shall be computed by allowing interest at the lesser of a per annum rate equal to: (i)
the greatest per annum rate of interest permitted from time to time under applicable law, or (ii) the Prime Rate plus 5%. For purposes
hereof, the "Prime Rate" shall be the per annum interest rate publicly announced as its prime or base rate by a federally
insured bank selected by Landlord in the State of California. The "Worth at the Time of Award" of the amount referred
to in part 19.1.1.3, above, shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus 1%;

19.1.2      
Employ the remedy described in California Civil Code § 1951.4 (Landlord may continue
this Lease in effect after Tenant's breach and abandonment and recover rent as it becomes due, if Tenant has the right to sublet
or assign, subject only to reasonable limitations); or 

19.1.3      
Notwithstandiug Landlord's exercise of the remedy described in California Civil Code §
1951.4 in respect of an Event or Events of Default, at such time thereafter as Landlord may elect in writing, to terminate this
Lease and Tenant's right to possession of the Premises and recover an award of damages as provided above in Section 19.1.1. 

19.2           
The subsequent acceptance of rent hereunder by Landlord shall not be deemed to be a waiver
of any preceding breach by Tenant of any term. covenant or condition of this Lease, other than the failure of Ten ant to pay the
particular rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent.
No waiver by Landlord of any breach hereof shall be effective unless such waiver is in writing and signed by Landlord. 

    	15

    	 

    

 

19.3           
TENANT HEREBY WAIVES ANY AND ALL RIGHTS CONFERRED BY SECTION 3275 OF THE CIVIL CODE OF CALIFORNIA
AND BY SECTIONS 1174 (c) AND 1179 OF THE CODE OF CIVIL PROCEDURE OF CALIFORJ'IIA AND ANY AND ALL OTHER REGULATIONS AND RULES OF
LAW FROM TIME TO TIME IN EFFECT DURING THE TERM PROVIDING THAT TENANT SHALL HA VE ANY RIGHT TO REDEEM, REINSTATE OR RESTORE THIS
LEASE FOLLOWING ITS TERJ'\1INA TION BY REASON OF TENANT'S BREACH. TENANT ALSO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW. THE RIGHT TO TRIAL BY JURY IN ANY LITIGATION ARISING OUT OFOR RELATING TO THIS LEASE. 

19.4           
No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive
of any other right or remedy, and each and every right and remedy shall be cumulative and in addition to any other right or remedy
given hereunder or now or hereafter existing by agreement, applicable law or in equity. In addition to other remedies provided
in this Lease, Landlord shall be entitled, to the extent permitted by applicable law, to injunctive relief, or to a decree compelling
performance of any of the covenants, agreements, conditions or provisions of this Lease, or to any other remedy allowed to Landlord
at law or in equity. Forbearance by Landlord to enforce one or more of the remedies herein provided upon an Event of Default shall
not be deemed or construed to constitute a waiver of such Default. 

19.5           
This Article 19 shall be enforceable to the maximum extent such enforcement is not prohibited
by applicable law, and the unenforceability of any portion thereof shall not thereby render unenforceable any other portion. 

19.6           
If more than one (l) Event of Default occurs during the Term or any renewal thereof, Tenant's
renewal options, expansion options, purchase options and rights of first offer and/or refusal, if any are provided for in this
Lease, shall be null and void. 

19.7           
If, on account of any breach or default by Tenant in Tenant's obligations under the terms
and conditions of this Lease, it shall become necessary or appropriate for Landlord to employ or consult with an attorney or collection
agency concerning or to enforce or defend any of Landlord's rights or remedies arising under this Lease or to collect any sums
due from Tenant, Tenant agrees to pay all costs and fees so incurred by Landlord, including, without limitation, reasonable attorneys'
fees and costs. TENANT EXPRESSLY WAIVES ANY RIGHT TO: (A) TRIAL BY WRY; AND (B) SERVICE OF ANY NOTICE REQUIRED BY ANY PRESENT OR
FUTURE LAW OR ORDINANCE APPLICABLE TO LANDLORDS OR TENANTS BUT NOT REQUIRED BY THE TERMS OF THIS LEASE. 

 

19.8           
Upon the occurrence of an Event of Default, Landlord may (but shall not be obligated to) cure
such default at Tenant's sole expense. Without limiting the generality of the foregoing, Landlord may, at Landlord's option, enter
into and upon the Premises if Landlord determines in its sole discretion that Tenant is not acting within a commercially reasonable
time to maintain, repair or replace anything for which Tenant is responsible under this Lease or to otherwise effect compliance
with its obligations under this Lease and correct the same, without being deemed in any manner guilty of trespass, eviction or
forcible entry and detainer and without incurring any liability for any damage or interruption of Ten ant's business resulting
therefrom and Tenant agrees to reimburse Landlord within five (5) days of Landlord's demand as additional rent. for any expenses
which Landlord may incur in thus effecting compliance with Tenant's obligations under this Lease, plus interest from the date of
expenditure by Landlord at the Wall Street Journal prime rate. 

 

20.               
TENANT'S BANKRUPTCY OR INSOLVENCY. 

20.1           
If at any time and for so long as Tenant shall be subjected to the provisions of the United
States Bankruptcy Code or other law of the United States or any state thereof for the protection of debtors as in effect at such
time (each a "Debtor's Law"): 

    	16

    	 

    

20.1.1      
Tenant, Tenant as debtor-in-possession, and any trustee or receiver of Tenant's assets (each
a "Tenant's Representative") shall have no greater right to assume or assign this Lease or any interest in this Lease,
or to sublease any of the Premises than accorded to Tenant in Article 9, except to the extent Landlord shall be required to permit
such assumption. assignment or sublease by the provisions of such Debtor's Law. Without limitation of the generality of the foregoing,
any right of any Tenant's Representative to assume or assign this Lease or to sublease any of the Premises shall be subject to
the conditions that: 

20.1.1.1 
Such Debtor's Law shall provide to Tenant's Representative a right of assumption of this Lease
which Tenant's Representative shall have timely exercised and Tenant's Representative shall have fully cured any default of Tenant
under this Lease. 

20.1.1.2 
Tenant's Representative or the proposed assignee, as the case shall be, shall have deposited
with Landlord as security for the timely payment of rent an amount equal to the larger of: (a) three (3) months' rent and other
monetary charges accruing under this Lease; and (b) any sum specified in Article 5; and shall have provided Landlord with adequate
other assurance of the future performance of the obligations of the Tenant under this Lease. Without limitation, such assurances
shall include, at least, in the case of assumption of this Lease, demonstration to the satisfaction of the Landlord that Tenant's
Representative has and will continue to have sufficient unencumbered assets after the payment of all secured obligations and administrative
expenses to assure Landlord that Tenant's Representative will have sufficient funds to fulfill the obligations of Tenant under
this Lease; and, in the case of assignment, submission of current financial statements of the proposed assignee, audited by an
independent certified public accountant reasonably acceptable to Landlord and showing a net worth and working capital in amounts
determined by Landlord to be sufficient to assure the future performance by such assignee of all of the Tenant's obligations under
this Lease. 

20.1.1.3 
The assumption or any contemplated assignment of this Lease or subleasing any part of the
Premises, as shall be the case, will not breach any provision in any other lease, mortgage, financing agreement or other agreement
by which Landlord is bound. 

20.1.1.4 
Landlord shall have, or would have had absent the Debtor's Law, no right under Article 9 to
refuse consent to the proposed assignment or sublease by reason of the identity or nature of the proposed assignee or sublessee
or the proposed use of the Premises concerned. 

 

21.               
QUIET ENJOYMENT. Landlord represents and warrants that it has full right and authority
to enter into this Lease and that Tenant, while paying the rental and performing its other covenants and agreements contained in
this Lease, shall peaceably and quietly have, hold and enjoy the Premises for the Term without hindrance or molestation from Landlord
subject to the terms and provisions of this Lease. Landlord shall not be liable for any interference or disturbance by other tenants
or third persons, nor shall Tenant be released from any of the obligations of this Lease because of such interference or disturbance.

 

22.               
CASUALTY 

 

22.1           
In the event the Premises or the Building are damaged by fire or other cause and in Landlord's
reasonable estimation such damage can be materially restored within one hundred eighty (180) days, Landlord shall forthwith repair
the same and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate abatement
in rent from the date of such damage. Such abatement of rent shall be made pro rata in accordance with the extent to which the
damage and the making of such repairs shall interfere with the use and occupancy by Tenant of the Premises from time to time. Within
forty-five (45) days from the date of such damage, Landlord shall notify Tenant, in writing, of Landlord's reasonable estimation
of the length of time within which material restoration can be made, and Landlord's determination shall be binding on Tenant. For
purposes of this Lease, the Building or Premises shall be deemed "materially restored" if they are in such condition
as would not prevent or materially interfere with Tenant's use of the Premises for the purpose for which it was being used immediately
before such damage. 

22.2           
If such repairs cannot, in Landlord's reasonable estimation, be made within one hundred eighty
(180) days, Landlord and Tenant shall each have the option of giving the other, at any time within ninety (90) days after such
damage, notice terminating this Lease as of the date of such damage. In the event of the giving of such notice, this Lease shall
expire and all interest of the Tenant in the Premises shall terminate as of the date of such damage as if such date had been originally
fixed in this Lease for the expiration of the Term. In the event that neither Landlord nor Tenant exercises its option to terminate
this Lease, then Landlord shall repair or restore such damage, this Lease continuing in full force and effect, and the rent hereunder
shall be proportionately abated as provided in Section 22. I. 

22.3           
Landlord shall not be required to repair or replace any damage or loss by or from fire or
other cause to any panelings, decorations, partitions, additions, railings, ceilings, floor coverings, office fixtures or any other
property or improvements installed on the Premises by, or belonging to, Tenant. Any insurance which may be carried by Landlord
or Tenant against loss or damage to the Building or Premises shall be for the sole benefit of the party carrying such insurance
and under its sole control. 

22.4           
In the event that Landlord should fail to complete such repairs and material restoration within
sixty (60) days after the date estimated by Landlord therefor as extended by this Section 22.4, Tenant may at its option and as
its sole remedy terminate this Lease by delivering written notice to Landlord, within fifteen (15) days after the expiration of
said period of time, whereupon the Lease shall end on the date of such notice or such later date fixed in such notice as if the
date of such notice was the date originally fixed in this Lease for the expiration of the Term; provided, however, that if construction
is delayed because of changes, deletions or additions in construction requested by Tenant, strikes, lockouts, casualties, Acts
of God, war, material or labor shortages, government regulation or control or other causes beyond the reasonable control of Landlord,
the period for restoration, repair or rebuilding shall be extended for the amount of time Landlord is so delayed. 

    	17

    	 

    

22.5           
Notwithstanding anything to the contrary contained in this Article: (a) Landlord shall not
have any obligation whatsoever to repair, reconstruct, or restore the Premises when the damages resulting from any casualty covered
by the provisions of this Article 22 occur during the last twelve (12) months of the Term or any extension thereof, but if Landlord
determines not to repair such damages Landlord shall notify Tenant and if such damages shall render any material portion of the
Premises untenantable Tenant shall have the right to terminate this Lease by notice to Landlord within fifteen (15) days after
receipt of Landlord's notice; and (b) in the event the holder of any indebtedness secured by a mortgage or deed of trust covering
the Premises or Building requires that any insurance proceeds be applied to such indebtedness, then Landlord shall have the right
to terminate this Lease by delivering written notice of termination to Tenant within fifteen (15) days after such requirement is
made by any such holder, whereupon this Lease shall end on the date of such damage as if the date of such damage were the date
originally fixed in this Lease for the expiration of the Term. 

22.6           
In the event of any damage or destruction to the Building or Premises by any peril covered
by the provisions of this Article 22, it shall be Tenant's responsibility to properly secure the Premises and upon notice from
Landlord to remove forthwith, at its sole cost and expense, such portion of all of the property belonging to Tenant or its licensees
from such portion or all of the Building or Premises as Landlord shall request. 

22.7           
Tenant hereby waives any and all rights under and benefits of Sections 1932(2) and 1933(4)
of the California Civil Code. or any similar or successor Regulations or other laws now or hereinafter in effect. 

 

23.               
EMINENT DOMAIN. If all or any substantial part of the Premises shall be taken or appropriated
by any public or quasi-public authority under the power of eminent domain, or conveyance in lieu of such appropriation, either
party to this Lease shall have the right, at its option, of giving the other, at any time within thirty (30) days after such taking,
notice terminating this Lease, except that Tenant may only terminate this Lease by reason of taking or appropriation, if such taking
or appropriation shall be so substantial as to materially interfere with Tenant's use and occupancy of the Premises. If neither
party to this Lease shall so elect to terminate this Lease, the rental thereafter to be paid shall be adjusted on a fair and equitable
basis under the circumstances. [n addition to the rights of Landlord above, if any substantial part of the Building shall be taken
or appropriated by any public or quasi-public authority under the power of eminent domain or conveyance in lieu thereof. and regardless
of whether the Premises or any part thereof are so taken or appropriated, Landlord shall have the right, at its sale option, to
terminate this Lease. Landlord shall be entitled to any and all income, rent, award, or any interest whatsoever in or upon any
such sum, which may be paid or made in connection with any such public or quasi-public use or purpose, and Tenant hereby assigns
to Landlord any interest it may have in or claim to all or any part of such sums, other than any separate award which may be made
with respect to Tenant's trade fixtures and moving expenses; Tenant shall make no claim for the value of any unexpired Term. Tenant
hereby waives any and all rights under and benefits of Section 1265.130 of the California Code of Civil Procedure, or any similar
or successor Regulations or other laws now or hereinafter in effect. 

 

24.               
SALE BY LANDLORD, In event of a sale or conveyance by Landlord of the Building, the
same shall operate to release Landlord from any future liability upon any of the covenants or conditions, expressed or implied,
contained in this Lease in favor of Tenant, and in such event Tenant agrees to look solely to the responsibility of the successor
in interest of Landlord in and to this Lease. Except as set forth in this Article 24, this Lease shall not be affected by any such
sale and Tenant agrees to attorn to the purchaser or assignee. If any security has been given by Tenant to secure the faithful
performance of any of the covenants of this Lease, Landlord may transfer or deliver said security, as such, to Landlord's successor
in interest and thereupon Landlord shall be discharged from any further liability with regard to said security.

 

25.               
ESTOPPEL CERTIFICATES. Within ten (10) days following any written request which Landlord
may make from time to time, Tenant shall execute and deliver to Landlord or mortgagee or prospective mortgagee a sworn statement
certifying: (a) the date of commencement of this Lease; (b) the fact that this Lease is unmodified and in full force and effect
(or, if there have been modifications to this Lease, that this lease is in full force and effect, as modified. and stating the
date and nature of such modifications); (c) the date to which the rent and other sums payable under this Lease have been paid;
(d) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant's statement;
and (e) such other matters as may be requested hy Landlord. Landlord and Tenant intend that any statement delivered pursuant to
this Article 25 may be relied upon by any mortgagee, beneficiary or purchaser, and Tenant shall be liable for a11loss, cost or
expense resulting from the failure of any sale or funding of any loan caused by any material misstatement contained in such estoppel
certificate. Tenant irrevocably agrees that if Tenant fails to execute and deliver such certificate within such ten (10) day period
Landlord or Landlord's beneficiary or agent may execute and deliver such certificate on Tenant's behalf, and that such certificate
shall be fully binding on Tenant. 

    	18

    	 

    

26.               
SURRENDER OF PREMISES. 

26.1           
Tenant shall arrange to meet Landlord for two (2) joint inspections of the Premises, the first
to occur at least thirty (30) days (but no more than sixty (60) days) before the last day of the Term, and the second to occur
not later than forty-eight (48) hours after Tenant has vacated the Premises. In the event of Tenant's failure to arrange such joint
inspections and/or participate in either such inspection, Landlord's inspection at or after Tenant's vacating the Premises shall
be conclusively deemed correct for purposes of determining Tenant's responsibility for repairs and restoration. 

26.2           
All alterations, additions, and improvements in, on, or to the Premises made or installed
by or for Tenant, including carpeting (collectively, "Alterations"), shall be and remain the property of Tenant during
the Term. Upon the expiration or sooner termination of the Term, all Alterations shall become a part of the realty and shall belong
to Landlord without compensation, and title shall pass to Landlord under this Lease as by a bill of sale. At the end of the Term
or any renewal of the Term or other sooner termination of this Lease, Tenant will peaceably deliver up to Landlord possession of
the Premises, together with all Alterations by whomsoever made, in the same conditions received or first installed, broom clean
and free of all debris, excepting only ordinary wear and tear and damage by fire or other casualty. Notwithstanding the foregoing,
if Landlord elects by notice given to Tenant at least ten (10) days prior to expiration of the Term, Tenant shall, at Tenant's
sale cost, remove any Alterations, including carpeting, so designated by Landlord's notice, and repair any damage caused by such
removal. Tenant must, at Tenant's sole cost, remove upon termination of this Lease, any and all of Ten ant's furniture, furnishings,
movable partitions of less than full height from floor to ceiling and other trade fixtures and personal property (collectively,
"Personalty"). Personalty not so removed shall be deemed abandoned by the Tenant and title to the same shall thereupon
pass to Landlord under this Lease as by a bill of sale, but Tenant shall remain responsible for the cost of removal and disposal
of such Personalty, as well as any damage caused by such removal. In lieu of requiring Tenant to remove Alterations and Personalty
and repair the Premises as aforesaid, Landlord may, by written notice to Tenant delivered at least thirty (30) days before the
Termination Date, require Tenant to pay to Landlord, as additional rent hereunder, the cost of such removal and repair in an amount
reasonably estimated by Landlord. 

26.3           
All obligations of Tenant under this Lease not fully performed as of the expiration or earlier
termination of the Term shall survive the expiration or earlier termination of the Term Upon the expiration or earlier termination
of the Term. Tenant shall pay to Landlord the amount, as estimated by Landlord, necessary to repair and restore the Premises as
provided in this Lease and/or to discharge Tenant's obligation for unpaid amounts due or to become due to Landlord. All such amounts
shall be used and held by Landlord for payment of such obligations of Tenant, with Tenant being liable for any additional costs
upon demand by Landlord. or with any excess to be returned to Tenant after all such obligations have been determined and satisfied.
Any otherwise unused Security Deposit shall be credited against the amount payable by Tenant under this Lease. 

 

27.               
NOTICES. Any notice or document required or permitted to be delivered under this Lease
shall be addressed to the intended recipient, by fully prepaid registered or certified United States Mail return receipt requested,
or by reputable independent contract delivery service furnishing a written record of attempted or actual delivery, and shall be
deemed to be delivered when tendered for delivery to the addressee at its address set forth on the Reference Pages, or at such
other address as it has then last specified by written notice delivered in accordance with this Article 27, or if to Tenant at
either its aforesaid address or its last known registered office or home of a general partner or individual owner, whether or not
actually accepted or received by the addressee. Any such notice or document may also be personally delivered if a receipt is signed
by and received from, the individual, if any, named in Tenant's Notice Address. 

 

28.               
TAXES PAYABLE BY TENANT. In addition to rent and other charges to be paid by Tenant
under this Lease, Tenant shall reimburse to Landlord, upon demand, any and all taxes payable by Landlord (other than net income
taxes) whether or not now customary or within the contemplation of the parties to this Lease: (a) upon, allocable to, or measured
by or on the gross or net rent payable under this Lease, including without limitation any gross income tax or excise tax levied
by the State, any political subdivision thereof, or the Federal Government with respect to the receipt of such rent; (b) upon or
with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy of the Premises
or any portion thereof, including any sales, use or service tax imposed as a result thereof; (c) upon or measured by the Tenant's
gross receipts or payroll or the value of Tenant's equipment, furniture, fixtures and other personal property of Tenant or leasehold
improvements, alterations or additions located in the Premises; or (d) upon this transaction or any document to which Tenant is
a party creating or transferring any interest of Ten ant in this Lease or the Premises. In addition to the foregoing, Tenant agrees
to pay, before delinquency, any and all taxes levied or assessed against Tenant and which become payable during the term hereof
upon Tenant's equipment, furniture, fixtures and other personal property of Tenant located in the Premises. 

    	19

    	 

    

 

29.               
RELOCATION OF TENANT. Landlord, at its sole expense, on at least sixty (60) days prior
written notice, may require Tenant to move from the Premises to other space of comparable size and decor in order to permit Landlord
to consolidate the space leased to Tenant with other adjoining space leased or to be leased to another tenant. In the event of
any such relocation, Landlord will pay all expenses of preparing and decorating the new premises so that they will be substantially
similar to the Premises from which Tenant is moving, and Landlord will also pay the expense of moving Tenant's furniture and equipment
to the relocated premises. In such event this Lease and each and all of the terms and covenants and conditions hereof shall remain
in full force and effect and thereupon be deemed applicable to such new space except that revised Reference Pages and a revised
Exhibit A shall become part of this Lease and shall reflect the location of the new premises. 

 

30.               
DEFINED TERMS AND HEADINGS. The Article headings shown in this Lease are for convenience
of reference and shall in no way define, increase, limit or describe the scope or intent of any provision of this Lease. Any indemnification
or insurance of Landlord shall apply to and inure to the benefit of all the following "Landlord Entities", being Landlord,
Landlord's investment manager, and the trustees, boards of directors, officers, general partners, beneficiaries, stockholders,
employees and agents of each of them. Any option granted to Landlord shall also include or be exercisable by Landlord's trustee,
beneficiary, agents and employees, as the case may be. In any case where this Lease is signed by more than one person, the obligations
under this Lease shall be joint and several. The terms "Tenant" and "Landlord" or any pronoun used in place
thereof shall indicate and include the masculine or feminine, the singular or plural number, individuals, firms or corporations,
and their and each of their respective successors, executors, administrators and permitted assigns, according to the context hereof.
The term "rentable area" shall mean the rentable area of the Premises or the Building as calculated by the Landlord on
the basis of the plans and specifications of the Building including a proportionate share of any common areas. Tenant hereby accepts
and agrees to be bound by the figures for the rentable square footage of the Premises and Tenant's Proportionate Share shown on
the Reference Pages; however, Landlord may adjust either or both figures if there is manifest error, addition or subtraction to
the Building or any business park or complex of which the Building is a part, remeasurement or other circumstance reasonably justifying
adjustment. The term "Building" refers to the structure in which the Premises are located and the common areas (parking
lots, sidewalks, landscaping, etc.) appurtenant thereto. If the Building is part of a larger complex of structures, the term "Building"
may include the entire complex, where appropriate (such as shared Expenses or Taxes) and subject to Landlord's reasonable discretion.

 

31.               
TENANTS AUTHORITY. If Tenant signs as a corporation, partnership, trust or other legal
entity each of the persons executing this Lease on behalf of Tenant represents and warrants that Tenant has been and is qualified
to do business in the state in which the Building is located, that the entity has full right and authority to enter into this Lease,
and that all persons signing on behalf of the entity were authorized to do so by appropriate actions. Tenant agrees to deliver
to Landlord, simultaneously with the delivery of this Lease, a corporate resolution, proof of due authorization by partners, opinion
of counselor other appropriate documentation reasonably acceptable to Landlord evidencing the due authorization of Tenant to enter
into this Lease. 

 

32.               
FINANCIAL STATEMENTS AND CREDIT REPORTS. At Landlord's request, Tenant shall deliver
to Landlord a copy, certified by an officer of Tenant as being a true and correct copy, of Tenant's most recent audited financial
statement, or, if unaudited, certified by Tenant's chief financial officer as being true, complete and correct in all material
respects. Tenant hereby authorizes Landlord to obtain one or more credit reports on Tenant at any time, and shall execute such
further authorizations as Landlord may reasonably require in order to obtain a credit report. 

 

33.               
COMMISSIONS. Each of the parties represents and warrants to the other that it has not
dealt with any broker or finder in connection with this Lease, except as described on the Reference Pages. 

 

34.               
TIME AND APPLICABLE LAW. Time is of the essence of this Lease and all of its provisions.
This Lease shall in all respects be governed by the laws of the state in which the Building is located. 

 

35.               
SUCCESSORS AND ASSIGNS. Subject to the provisions of Article 9, the terms, covenants
and conditions contained in this Lease shall be binding upon and inure to the benefit of the heirs, successors, executors, administrators
and assigns of the parties to this Lease. 

 

36.               
ENITRE AGREEMENT. This Lease, together with its exhibits, contains all agreements of
the parties to this Lease and supersedes any previous negotiations. There have been no representations made by the Landlord or
any of its representatives or understandings made between the parties other than those set forth in this Lease and its exhibits.
This Lease may not be modified except by a written instrument duly executed by the parties to this Lease. 

    	20

    	 

    

 

37.               
EXAMINATION NOT OPTION. Submission of this Lease shall not be deemed to be a reservation
of the Premises. Landlord shall not be bound by this Lease until it has received a copy of this Lease duly executed by Tenant and
has delivered to Tenant a copy of this Lease duly executed by Landlord, and until such delivery Landlord reserves the right to
exhibit and lease the Premises to other prospective tenants. Notwithstanding anything contained in this Lease to the contrary,
Landlord may withhold delivery of possession of the Premises from Tenant until such time as Tenant has paid to Landlord any security
deposit required by Article 5, the first month's rent as set forth in Article 3 and any sum owed pursuant to this Lease. 

 

38.               
RECORDATION. Tenant shall not record or register this Lease or a short form memorandum
hereof without the prior written consent of Landlord, and then shall pay all charges and taxes incident such recording or registration.

 

39.               
LIMITATION OF LANDLORD'S LIABILITY. Redress for any claim against Landlord under this
Lease shall be limited to and enforceable only against and to the extent of Landlord's interest in the Building. The obligations
of 

 

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    	21

    	 

    

 

Landlord under this Lease are not intended to be and shall not be
personally binding on, nor shall any resort be had to the private properties of, any of its or its investment manager's trustees,
directors, officers, partners, beneficiaries, members, stockholders, employees, or agents, and in no case shall Landlord be liable
to Tenant hereunder for any lost profits, damage to business, or any Conn of special, indirect or consequential damages.

 

	LANDLORD:	TENANT:
	WALNUT TECH BUSINESS CENTER, LLC a Delaware limited liability company	ZHI JIAN ZHANG, an individual dba WEST COAST SOLAR TECH
	By: RREEF Management Company, a Delaware corporation	 
	/s/Jeffrey Allen	/s/Zhi Jian Zhang
	Name: Jeffrey Allen	Name: Zhi Jian Zhang
	Title: District Manager	Title: an individual
	Dated: 5/15/08	Dated: 05/13/08

    	22

    	 

    

ADDENDUM

attached to and made a part of Lease bearing
the

Lease Reference Date of
May 7, 2008 between

WALNUT TECH BUSINESS CENTER, LLC, a Delaware
limited liability company, as Landlord and ZHI JIAN ZHANG, an Individual, dba WEST COAST SOLAR TECH, as Tenant

40.               
DIRECT EXPENSES/TAXES. 

In addition to annual rent, Landlord and Tenant agree that for the
term of this Lease, Tenant shall pay to Landlord a set amount each month 0£$197.37 for Direct Expenses and Taxes as set forth
in the Reference Page.

 

41.               
HV AC MAINTENANCE. 

Landlord shall perform periodic maintenance on the heating. ventilating
and air conditioning systems (HV AC) for the Premises. The cost shall be at Tenant's expense as provided in Article 4.1.2 of this
Lease.

Wherever heat-generating machines or equipment are used by Tenant
in the Premises which affect the temperature otherwise maintained by the air conditioning system or Tenant allows occupancy of
the Premises by more persons than the heating and air conditioning system is designed to accommodate, in either event whether with
or without Landlord's approval, Landlord reserves the right to install supplementary heating and/or air conditioning units in or
for the benefit of the Premises and the cost thereof, including the cost of installation and the cost of operations and maintenance,
shall be paid by Tenant to Landlord within five (5) days of Landlord's demand.

 

42.               
PARKING. 

Tenant shall be entitled to use eight (8) unreserved and nonexclusive
parking spaces in the parking area in the Building. Tenant expressly agrees and understands that these parking spaces are not reserved
and that Landlord in the exercise of its sole and absolute discretion may designate the area or areas of the parking facilities
located at the Building where said in common parking spaces are to be located. Landlord shall have the right at any time to make
changes to the location of driveways, entrances, exits, parking spaces, parking areas, or the direction of the flow of traffic.

 

43.               
EARLY POSSESSION. 

Notwithstanding anything in the Lease to the contrary, provided
that this Lease has been fully executed by all parties and Tenant has delivered all prepaid Rent and Security Deposit required
hereunder, Landlord may permit Tenant to enter the Premises prior to the Commencement Date beginning May 15, 2008 solely
for the purposes of (i) performing improvements (provided that such improvement work shall be performed in accordance with Article
6 hereof), and (ii) installing furniture, equipment or other personal property. Such possession prior to the Commencement Date
shall be subject to all of the terms and conditions of this Lease, except that Tenant shall not be required to pay the Monthly
Installment of Rent or Tenant's Proportionate Share of Expenses and Taxes with respect to the period of time prior to the Commencement
Date during which Tenant occupies the Premises for such purposes. However, Tenant shall be liable for any parking or special or
after hour services provided to Tenant during such period. Landlord may withdraw such permission to enter the Premises prior to
the Commencement Date at any time that Landlord reasonably determines that such entry by Tenant is causing a dangerous situation
for Landlord, Tenant or their respective contractors or employees. The parties anticipate that the first Monthly Installment of
Rent shall be due on June 1, 2008.

 

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EXHIBIT A - FLOOR PLAN DEPICTING THE PREMISES

attached to and made a part of Lease bearing
the

Lease Reference Date of May 7, 2008 between

WALNUT TECH BUSINESS CENTER, LLC, a Delaware
limited liability company, as Landlord and ZHI JIAN ZHANG, an Individual, dba WEST COAST SOLAR TECH, as Tenant

 

Exhibit A is intended only to show the general layout or the Premises
as of the beginning of the Term of this Lease. It does not in any way supersede any of Landlord's rights set forth in Article 17
with respect to arrangements and/or locations of public parts of the Building and changes in such arrangements and/or locations.
It is not to be scaled; any measurements or distances shown should be taken as approximate.

 

 

 

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    	24

    	 

    

EXHIBIT A-1 - SITE PLAN

attached to and made a part of Lease bearing
the

Lease Reference Date of May 7, 2008 between

 

WALNUT TECH BUSINESS CENTER, LLC, a Delaware
limited liability compan)', as Landlord and ZHI JIAN ZHANG, an Individual, dba WEST COAST SOLAR TECH, as Tenant

 

Exhibit A-1 is intended only to show the general layout of the Premises
as of the beginning of the Term of this Lease. It does not in any way supersede any of Landlord's rights set forth in Article 17
with respect to arrangements and/or locations of public parts of the Building and changes in such arrangements and/or locations.
It is not to be scaled; any measurements or distances shown should be taken as approximate

 

 

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    	25

    	 

    

EXHIBIT B - INITIAL ALTERATIONS

attached to and made a part of Lease bearing
the

Lease Reference Date of May I, 2008 between

WALNUT TECH BUSINESS CENTER, LLC, a Delaware
limited liability company, as Landlord and ZHI JIAN ZHANG, an Individual, dba WEST COAST SOLAR TECH, as Tenant

 

Tenant shall accept the Premises in its current "as-is"
condition. In no event shall Landlord be responsible for any other tenant improvement work. Any tenant improvement work shall be
the sole expense and responsibility of the Tenant and all costs shall be paid directly by Tenant. All tenant improvement specifications
and materials shall be performed and comply with the building standards as set forth by the Landlord.

 

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EXHIBIT C - COMMENCEMENT DATE MEMORANDUM

attached to and made a part of Lease bearing
the

Lease Reference Date of May I, 2008 between

WALNUT TECH BUSINESS CENTER, LLC, a Delaware
limited liability company, as Landlord and ZHI JIAN ZHANG, an Individual, dba WEST COAST SOLAR TECH, as Tenant

 

COMMENCEMENT DATE MEMORANDUM

 

THIS MEMORANDUM, made as of __, 20_, by and between ("Landlord")and
("Tenant").

Recitals:

A.                 
Landlord and Tenant are parties to that certain Lease, dated for reference ___,20_ (the "Lease")
for certain premises (the "Premises") consisting of approximately _ square feet at the building commonly known as _____.

A.                 
Tenant is in possession of the Premises and the Term of the Lease has commenced.

B.                 
Landlord and Tenant desire to enter into this Memorandum confirming the Commencement Date,
the Termination Date and other matters under the Lease.

 

NOW, THEREFORE, Landlord and Tenant agree as follows:

 

1.                  
The actual Commencement Date is _____.

2.                  
The actual Termination Date is ______.

3.                  
The schedule of the Annual Rent and the Monthly Installment of Rent set forth on the Reference
Pages is deleted in its entirety, and the-following is substituted therefor: 

 

[insert rent schedule]

 

4.                  
Capitalized terms not defined herein shall have the same meaning as set forth in the Lease.

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed as of the date and year first above written.

	LANDLORD:	TENANT:
	By: RREEF Management Company, a Delaware corporation	 
	By: DO NOT SIGN	By: DO NOT SIGN
	Name:	Name:
	Title:	Title:
	Dated:	Dated:

    	27

    	 

    

 

EXHIBIT D - RULES AND REGULATIONS

attached to and made a part of Lease bearing
the

Lease Reference Date of May 7, 2008 2008
between

WALNUT TECH BUSINESS CENTER, LLC, a Delaware
limited liability company, as Landlord and ZHI JIAN ZHANG, an Individual, dba WEST COAST SOLAR TECH, as Tenant

 

1.                  
No sign, placard, picture, advertisement, name or notice shall be installed or displayed on
any part of the outside or inside of the Building without the prior written consent of the Landlord. Landlord shall have the right
to remove, at Tenant's expense and without notice, any sign installed or displayed in violation of this rule. All approved signs
or lettering on doors, windows and walls shall be printed, painted, affixed or inscribed at the expense of Tenant by a person or
vendor chosen by Landlord. In addition, Landlord reserves the right to change from time to time, the format of the signs or lettering
and to require previously approved signs or lettering to be appropriately altered. 

2.                  
 If Landlord objects in writing to any curtains, blinds, shades or screens attached to or
hung in or used in connection with any window or door of the Premises. Tenant shall not place anything or allow anything to be
placed against or near any glass partitions, doors or windows, which may appear unsightly, in the opinion of Landlord from outside
the Premises. 

3.                  
Tenant shall not obstruct any sidewalks, passages, alleyways, exits, or entrances of the Building.
The sidewalks, passages, alley ways, exits and entrances are not for the general public, and Landlord shall in all cases retain
the right to control and prevent access to the Building of all persons whose presence in the judgment of Landlord would be prejudicial
to the safety, character, reputation and interests of the Building and its tenants. Provided that nothing contained in this rule
shall be construed to prevent such access to persons with whom any tenant normally deals in the ordinary course of its business,
unless such persons are engaged in illegal activities. No tenant and or employee or invitee of any tenant shall go upon the roof
of the Building. 

4.                  
All cleaning and janitorial services shall be provided exclusively through Landlord for the
exterior portion of the Building. Tenant shall be responsible for all cleaning of the Premises. Tenant shall not cause any unnecessary
labor by carelessness or indifference to the good order and cleanliness of the Building or Premises. Landlord shall not in any
way be responsible to any Tenant for any loss of property on the Premises, however occurring, or for any damage to any Tenant's
property by the Tenant's janitor or any other employee or any other person. 

5.                  
If Tenant requires telegraphic, telephonic, burglar alarm or similar services, it shall first
obtain, and comply with Landlord's instruction in their installation. 

6.                  
No equipment, materials, furniture, packages, supplies, merchandise or other property will
be delivered to the Building or carried in the elevators (if applicable) except during business operating hours and in such elevators
as may be designated by Landlord. 

7.                  
Tenant shall not place a load upon any floor, which exceeds the load per square foot, which
such floor is designed to carry and which is allowed by law. Landlord shall have the right to prescribe the weight, size and position
of all equipment, materials, furniture or other property brought into the Building. Heavy objects shall stand on such platforms
as determined by Landlord to be necessary to properly distribute the weight. Business machines and mechanical equipment belonging
to Tenant which cause noise or vibration that may be transmitted to the structure of the Building or to any space in the Building
to such a degree as to be objectionable to Landlord or to any tenants, shall be placed and maintained by Tenant, at Tenant's expense,
on vibration eliminators or other devices sufficient to eliminate noise or vibration. The persons employed to move such equipment
in or out of the Building must be acceptable to Landlord. Landlord will not be responsible for loss of, or damage to, any such
equipment or other property from any cause, and all damage done to the Building by maintaining or moving such equipment or other
property shall be repaired at the expense of Tenant. 

8.                  
Tenant shall not use any method of heating or air conditioning other that that supplied by
the Building. Tenant shall not waste electricity, water or air conditioning. 

9.                  
Landlord reserves the right to exclude from the Building any person, unless that person is
known to the person or employee in charge of the Building and has a pass or is properly identified, between the hours of 6 p.m.
and 7 a.m. the following day, or such other hours as may be established from time to time by Landlord, and on Sundays and Legal
holidays. Tenant shall be responsible for all persons for whom it requests passes and shall be liable to Landlord for all acts
of such persons. 

    	28

    	 

    

10.               
Tenant shall close and lock the doors of its Premises and entirely shut off all water faucets
or other water apparatuses and electricity, gas or air outlets before Tenant and its employees leave the Premises. Tenant shall
be responsible for any damage or injuries sustained by other tenants or occupants of the Building or by Landlord for noncompliance
with this rule. 

11.               
The toilet rooms, urinals, wash bowls and other apparatuses, shall not be used for any purpose
other than that for which they were constructed, and no foreign substances of any kind whatsoever shall be disposed into any of
the fixtures. The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be at the sole expense
of the Tenant who. or whose employees or invitees shall have caused it. 

12.               
Tenant shall not install any radio or television antenna, satellite dish, loudspeaker or other
devise on the roof or exterior wall of the Building without Landlord's prior written consent. Tenant shall not interfere with radio
or television broadcasting or reception from or in the Building or elsewhere. 

13.               
Except as approved by Landlord, Tenant shall not mark, drive nails, screw or drill into the
partitions, woodwork or plaster or in any way deface the Premises. Tenant shall not cut or bore holes for wires. Tenant shall not
affix any floor covering to the floor of the Premises in any manner except as approved by Landlord. Tenant shall repair any damage
resulting from noncompliance with this rule. 

14.               
Tenant shall store all its trash and garbage of the Premises in the designated Building trash
dumpsters. Tenant shall not place any material which cannot be disposed of in the ordinary and customary manner of trash and garbage
disposal in any trash dumpster or receptacle. All cardboard cartons shall be broken down and flattened prior to placement in the
dumpsters. All garbage and refuse disposal shall be made in accordance with directions issued from time to time by Landlord. 

15.               
No cooking shall be done or permitted by any Tenant in the Premises, except by an approved
Underwriters' Laboratory appliance, such as microwave ovens or appliances for brewing coffee, tea, hot chocolate and similar beverages,
and provided that such equipment and its use is in accordance with all applicable federal, state and city laws, codes, ordinances,
rules and regulations. 

16.               
Tenant shall not use the name of the Building in connection with, or in promoting or advertising
the business of Tenant except as Tenant's address. 

17.               
 An authorized individual of Landlord will attend to tenant requirements. Employees of Landlord
shall not perform any work or do anything outside of their regular duties unless under special instruction from Landlord, and no
employee of Landlord will admit any person (Tenant or otherwise) to any office without specific instructions from Landlord. 

18.               
Landlord may waive anyone or more of these Rules and Regulations for the benefit of any particular
tenant or tenants, but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any
other tenant, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all of the tenants of
the Building. 

19.               
These Rules and Regulations are in addition to, and shall not be construed to modify or to
amend, in whole or in part, the terms, covenants, agreements and conditions of any lease for any premises in or about the Building.

20.               
Landlord reserves the right to make such other and reasonable rules and regulations as in
its judgment may from time to time be needed for safety and security, for care and 'c1eanliness of the Building, and for the preservation
of good order in and around the Building. Tenant agrees to abide by all such rules and regulations in this Exhibit C as stated
and any additional rules and regulations which are adopted. 

21.               
Tenant shall be responsible for the observance of all of the foregoing rules by Tenant's employees,
agents, clients, customers, invitees and guests. 

    	29

    	 

    

22.               
No Tenant shall use, keep or permit to be used or kept in its Premises any foul or noxious
gas or substance, or permit or suffer such premises to be occupied or used in a manner offensive objectionable to Landlord or other
occupants of the Building by reason of noise, odors and/or vibrations, or interfere in any way with other Tenant's, or those having
business therein, nor shall any animals or birds be brought or kept in or about any premises of the Building. 

23.               
Landlord will direct electricians as to where and how telephone, telegraph and electrical
wires are to be introduced or installed. No boring or cutting for wires will be allowed without the prior written consent of Landlord.
The location of burglar alarms, telephones, call boxes and other office equipment affixed to all premises shall be subject to the
written approval of Landlord. 

24.               
Landlord reserves the right to designate the use of the parking spaces on the Premises. 

25.               
Tenant or Tenant's guests shall park between designated parking lines only, and shall not
occupy two parking spaces with one car. Vehicles in violation of the above shall be subject to tow-away, at the owner's expense.

26.               
Vehicles parked on Premises overnight without prior written consent of the Landlord shall
be deemed abandoned and shall be subject to tow-away, at vehicle owner's expense. 

 

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    	30

    	 

    

EXHIBIT E - SIGN SPECIFICATIONS

attached to and made a part of Lease bearing
the

Lease Reference Date of May 7, 2008 between

WALNUT TECH BUSINESS CENTER, LLC, a Delaware
limited liability company, as Landlord and ZHI JIAN ZHANG, an Individual, dba WEST COAST SOLAR TECH, as Tenant

 

Walnut Tech Business Center has been designed and developed to provide
the best possible environment for tenants and their clients. Signs are an integral part of the overall appearance of the Center
and must be designed and controlled to contribute to the quality environment. To insure a high level of appearance of the graphics
and signs, the following criteria has been developed. This criterion has been prepared to meet the standards established by the
City of Walnut, Planning and Fire Departments.

 

In fairness to all, conformance will be strictly enforced. All nonconforming
signs will be brought to conformance at the Tenant's expense. Except as provided herein, no other sign (banners, painted, illuminated,
etc.) exterior or interior window areas will be allowed. Signs must be installed within sixty (60) days of occupancy. If a conforming
sign is not installed in the time frame allowed, Walnut Tech Business Center may, at Landlord's option, have a sign installed at
Tenant's expense.

 

Prior to fabrication and installation of tenant sign, in-scale drawings
must be provided to Landlord and the City of Walnut for approval and required permits. Tenants are responsible for drawing, permits,
manufacturing, routing electrical from main service (electrical signs) and installation costs of their signs.

 

Any deviations to these criteria must be approved by Landlord and
appropriate governmental agencies. All signs not approved by Landlord and governmental agencies shall be removed at Tenant's sole
cost and expense.

 

COMMERCIAL/INDUSTRIAL SPECIFICATIONS

1.                  
All logos are not allowed unless given written approval by Landlord. 

2.                  
Letter height shall be 10", maximum length shall not exceed 80% of leasehold width. 

3.                  
Type style, copy and colors must be approved by Landlord before fabrication. 

4.                  
Letters to be 2" deep, with black returns and black trim cap. 

5.                  
All components to be U.L. listed. 

 

RETAIL SPECIFICATIONS 

1.                  
Canned signs shall be approved on a case by case basis. 

2.                  
All letter/numeral forms shall be internally illuminated channel letters. 

3.                  
Letter style is subject to approval by Landlord and governmental agencies. 

4.                  
Letter face colors may be any of the following: R.&H. plex: White W-7328, Green 2030,
Blue 21 14, Red 2283, Orange 21 19, Yellow 2465. 

5.                  
Returns and trim cap on all letters shall be black. 

6.                  
All letters shall be 12" to I 8" tall with 5" deep returns. 

 

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    	31

    	 

    

EXHIBIT E-1 - SIGN SPECIFICATIONS

attached to and made a part of Lease bearing
the

Lease Reference Date
of May 7, 2008 2008 between

WALNUT TECH BUSINESS CENTER, LLC, a Delaware
limited liability company, as Landlord and ZHI JIAN ZHANG, an Individual, dba WEST COAST SOLAR TECH, as Tenant

 

 

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    	32

    	 

    

EXHIBIT F - CONDITION OF PREMISES

attached to and made a part of Lease bearing
the

Lease Reference Date
of May 7, 2008 between

WALNUT TECH BUSINESS CENTER, LLC, a Delaware
limited liability company, as Landlord and ZHI JIAN ZHANG, an Individual, dba WEST COAST SOLAR TECH, as Tenant

 

Prior to vacating the Premises, it must be left in good, clean condition
with all systems in good working order, normal wear and tear excepted, The items that will be inspected by Landlord are listed
below, but not limited to the following:

1.                  
All lights in the office and warehouse must be working. Re-lamp and/or re-ballast the fixtures
as necessary. 

2.                  
Overhead doors must be serviced and repaired. 

3.                  
All exterior metal doors, including hardware should be serviced or replaced as necessary.

4.                  
Repair all damaged sheet rock in the office area and in the warehouse along the demising walls.

5.                  
Office and warehouse floors should be left in good, clean condition. 

6.                  
Any exterior signage must be removed; repair and repaint the fascia as necessary. 

7.                  
The bathrooms and any janitors' sinks and closets must be cleaned with all plumbing in good
working order and condition, all lights and fans in good working condition and all items removed from any cabinets. 

8.                  
All data and electrical wiring for Tenant's personal equipment and machinery needs to be removed
to the point of origin and any repairs from damage made. 

9.                  
Tenant, prior to the expiration of the Lease term, at Tenant's expense shall restore the interior
of the Premises to substantially the same condition as received on the date of possession and as set forth in Exhibit A. 

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]TERRITORY DISTRIBUTION CONTRACT

November 17, 2008

 

Contract No.: CSI-SSI081117

 

Entered into by and between

 

Canadian Solar Inc.

675 Cochrane Drive

East Tower 6th Floor

Markham, Ontario L3R 0B8

Canada

(hereinafter referred to as the “PRINCIPAL”)

 

And

 

Sunvalley Solar, Inc.

398 Lemon Creek Rd. Suite A

Walnut CA91788, USA

Tel:+ 1-626-991-6898

(hereinafter referred to as the “DISTRIBUTOR”)

 

PRINCIPAL AND DISTRIBUTOR will be called as
the “Party” individually and “Parties” collectively hereunder.

    	   

    	 

    

 

Recitals

 

The PRINCIPAL is registered under Federal Business
Act of Canada and manufactures crystalline photovoltaic modules at its wholly-owned manufacturing plants in P.R. China in the brand
name of “Canadian Solar” or “CSI”.

 

The DISTRIBUTOR is the solar power technology
and system design and integration company active in the photovoltaic market. Among other business activities, the DISTRIBUTOR distributes
solar modules and carries out various solar system integration projects in USA market.

 

The DISTRIBUTOR desries to act as a preferred
DISTRIBUTOR of PRINCIPAL’s certain Mono/Poly Crystalline PV Modules as described in attached Exhibit I (hereinafter referred
to as “Module” or “Modules” or “Products”) throughout the authorized region (“Territory”)
and promote the sale of Products from the PRINCIPAL in that Territory.

The PRINCIPAL desires to deliver and sell said
Modules to the DISTRIBUTOR and provide sales aids to the DISTRIBUTOR.

 

NOW, THEREFORE, the Parties agree as
follows:

 

 
I.                 
Authorized Territory

 

The PRINCIPAL grants a preferred distribution
right to the DISTRIBUTOR to distribute the Products within Southern California (from Southern Part of Fresno to Southern Part of
San Diego), States of Nevada and Arizona in the United States of America. Without express written approval from the PRINCIPAL,
the DISTRIBUTOR shall not surpass the Territory to conduct any Products distribution activity.

    	2

    	 

    

 

 

II. Type and Quantity of Modules, Prices,
Delivery Time

 

Types and quantities of the Modules which the
DISTRIBUTOR needs, together with the applicable specification, the prices, and the desired time of delivery which is set forth
in EXHIBIT I to this Territory Distribution Contract (“Contract”). However, each detailed transaction will be arranged
by the PRINCIPAL and DISTRIBUTOR through a specific purchase order after reached agreement by Parties. But the stipulations set
a specific purchase order after reached agreement by Parties. But the stipulations set forth in this Contract apply in case of
any contradiction with the said purchase orders.

 

All orders from DISTRIBUTOR are subject to
approval and final acceptance by PRINCIPAL. Price lists to DISTRIBUTOR shall be set forth in Exhibit I (as revised from time to
time by PRINCIPAL at its sole discretion) effective from date of shipment. For non-standard Products which are sold to DISTRIBUTOR
for resale, the price shall be quoted to DISTRIBUTOR at time of inquiry, provided that the inquiry is within thirty (30) calendar
days of order entry.

 

The price for each individual
transaction shall be fixed through negotiations between PRINCIPAL and DISTRIBUTOR, and subject to PRINCIPAL's final confirmation

(PRINCIPAL should inform DISTRIBUTOR
price changing 30 days in advance).

 

the PRINCIPAL shall provide
some dummy modules or small size modules of same product to the DISTRIBUTOR for marketing purpose. The DISTRIBUTOR should be responsible
for shipping charges of these dummy modules and other marketing materials.

 

III. Labelling

 

1. The Product labels and trademarks
of each Module shall state the PRINCIPAL's name "Canadian Solar" or "CSI", each Module's serial number, indicate
the nominal output as well as current and voltage characteristics at standard test conditions (STC) of the type of Module concerned
and bear a clear warning against hazardous behaviour.

 

2. The DISTRIBUTOR shall not,
without the prior written consent of the PRINCIPAL, alter or make any addition to the labelling or packaging of the Products displaying
the Trade Marks, and shall not alter, deface or remove in any manner any reference to the Trade Marks, any reference to the PRINCIPAL
or any other name attached or affixed to the Products or their packaging or labelling.

    	3

    	 

    

 

 

IV. Port of Shipment/Port
of Destination

 

The port of shipment
shall be Shanghai. P.R. China or any other Chinese ports determined by the PRINCIPAL from time to time.

 

The port of destination will
be the major USA ports. The DISTRIBUTOR shall timely notify the PRINCIPAL of the port of destination for every single shipment.

 

V. Packing/ Shipping Mark

 

1. The packing
shall be in accordance with the international packing standards (no wood package, for example) and suitable for long distance ocean
shipping freight transportation and shall be well 'protected
against moisture and shocks as well as disinfected. The well-packed PV-modules
shall be shipped in containers. The relevant service and
operation instructions shall be enclosed.

 

2. The PRINCIPAL
shall mark on each package with fadeless paint the package number, gross weight. net weight,
measurement of the package as well as of each single Module, the serial number and wattage
of each single Module in the package concerned, the name of the Module type, the port of destination and the wordings or imaged
indications representing: "Keep Away from Moisture", "Handle with Care" ... etc.

 

VI. TITLE AND RISK OF LOSS/INSURANCE

 

1. Risks of loss or
damage, as well as any additional costs due to events occurring after the time of delivery shall pass to the DISTRIBUTOR on delivery
in accordance with C.I.F. Incoterms 2000: However, title to the Products per specified delivery shall pass to the DISTRIBUTOR only
after payment for those particular Products has been received in full.

 

2. The PRINCIPAL also has to
procure marine insurance against the DISTRIBUTOR's risk of loss of or damage to the Products during the carriage only on minimum
insurance coverage in accordance with C.I.F Incoterms 2000.

 

3. The DISTRIBUTOR
shall at its own cost maintain insurance coverage against all risks which would normally be Insured against by a prudent businessman
in respect of products supplied to it commencing from the time when the Products surpass the rail of the
carrying vessel and extending until such time as title in the Products passes to the DISTRIBUTOR in accordance with Par.1 above.

 

    	4

    	 

    

 

 

VII. Terms of Payment

 

The payment shall be made:

 

1. T/T 30% down payment in
advance at least 7 days before shipment date and the balance by TT with bank guarantee/credit insurance or by irrevocable LC at
sight. Both the bank guarantee and the L/C shall be issued and presented to the PRINCIPAL 25 working days prior to the first
shipping date requirement.

 

2. Late Payment: Interest shall
be charged on any amounts overdue amount at the rate of 0.04 % per day to run from the due date for payment until receipt by the
PRINCIPAL of the full amount whether or not after judgment and without prejudice to any other right or remedy of the PRINCIPAL.

 

VIII. Documents

 

The PRINCIPAL shall send the
following documents immediately to the DISTRIBUTOR via an international bank for the respective shipment.

 

1. Full set (including
3 originals) of shipped on board Bill of Ladings made out to this Contract and blank endorsed and consigned to the DISTRIBUTOR,
marked "Freight Prepaid".

 

2. Signed Commercial
Invoice in 2 originals indicating contract number issued by the PRINCIPAL. Packing list (including 3 originals) with indication
of weights measurements and quantity issued by the PRINCIPAL.

 

3. Flash reports
stating the Module type, serial number, Isc, Voc, Imp, Vmp, Pmax by Fax or E-mail to DISTRIBUTOR.

 

Within 5 working days after
receiving the shipping documents from the PRINCIPAL's shipping forwarder, the PRINCIPAL has to fax or e-mail or courier one copy
of the Bill of Lading and one copy of the Commercial Invoice to the DISTRIBUTOR.

    	5

    	 

    

 

 

The number of the documents
and their contents shall be complete and correct. If the DISTRIBUTOR fails to pass the customs and to take over the Products in
time due to the PRINCIPAL not having provided the documents as specified above, all losses caused by the PRINCIPAL's fault shall
be borne by the PRINCIPAL.

 

IX. Shipments

 

C.I.F. USA port (Incoterms
2000).

 

Unless otherwise agreed in
writing between the Parties, Cost Insurance and Freight Incoterms 2000 shall apply to this Contract. If there is any conflict between
such Incoterms and the terms of this Contract then the terms of this Contract shall prevail.

 

The particulars of the shipment
including the name of the vessel, date, quantity and value of shipment are to be e-mailed or faxed to the DISTRIBUTOR within 2
working days after such information received from the PRINCIPAL's shipping forwarder so that the DISTRIBUTOR can arrange for the
Customs Clearance.

 

X. Warranties

 

PRINCIPAL's warranties:

 

1. The PRINCIPAL guarantees
that the products shall be made of qualified materials with first class workmanship, that they shall be brand new and unused and
that they shall comply in all respects with the quality and specification stipulated in this Contract including its attachments
and that they shall be in conformity with the relevant technical data.

 

2. The PRINCIPAL guarantees
that the Modules are manufactured according to UL1703 standards.

    	6

    	 

    

 

 

3. Furthermore, the PRINCIPAL
shall issue a written warranty for his products with the following content:

 

1) Product
Quality Warranty stating that the Products shall be free from defects in material and workmanship for two years. If, within 24
months counting from the date of receipt of the Product at destination, damages or defects
occur in the course of operation because of inferior quality, bad workmanship or the use of inferior materials in the manufacturing
process, the PRINCIPAL shall, upon notice by the DISTRIBUTOR with authentic and sufficient evidence, immediately repair, replace,
or make adjustments to the default products.

 

2) A
Power Performance Warranty stating that the power degradation of the Products' originally rated power as determined under Standard
Test Conditions (1000W/m2, 25°C cell temperature, AM=1.5) shall not be greater than 10% within 10 years and 20% within
25 years.

 

4. This warranty shall lead
to the consequence that:

 

1) if,
within 24 months counting from the date of receipt of the Product at destination, damages or defects occur in the course of Operation
because of inferior quality, bad workmanship or the use of inferior materials in the manufacturing process,
the PRINCIPAL shall, upon notice by the DISTRIBUTOR with authentic and sufficient evidence,
immediately repair, replace the defective Products. Costs for transportation of the default and replacing modules and installation
costs shall be borne by the PRINCIPAL.

 

2) if it is determined
that under Standard Test Conditions (STC, 1000 W/m2, 25DC, AM=1.5) Products supplied by the PRINCIPAL to the DISTRIBUTOR do not
meet the warranted percentage of its specified power output during the warranty term, the PRINCIPAL shall execute the remedy as
stipulated in its warranty statement.

 

5. The warranties shall not
cover damages, malfunctions or service failures caused by:

 

- errors made during
installation, operation or maintenance,

- abuse or misuse,

- power failure surges,
lightning, fire or flood,

- actions of third
parties and other events or accidents outside the reasonable control and not arising under normal operating conditions.

    	7

    	 

    

 

 

Where inspection
of the defective product indicates with sufficient evidence of improper installation, operation or maintenance, the DISTRIBUTOR
shall reimburse PRINCIPAL its costs for the replacement or repaired the Product including costs of examination.

 

DISTRIBUTOR'S Warranties:

 

1. DISTRIBUTOR guarantees that
it will actively and diligently promote the sale of the Products in the Territory during the Term of this Contract. Under the preferred
distribution right, the PRINCIPAL should make effort to refer all sales leads less than one MW in size to the preferred distributor
and consult the preferred distributor for sales leads larger than one MW. The PRINCIPAL should refer to DISTRIBUTOR all inquiries
less than one MW in size, with an exemption of contracts signed previously to the valid date of this Contract for Products In the
preferred distribution Territory

 

2. DISTRIBUTOR warrants that
it will undertake to orders for the Products in the Territory during the effective period of this Contract for not less than 1,500,000
Watts

 

3. DISTRIBUTOR warrants that
it will promote in the Territory the PRINCIPAL's brand names and the Products during the Term hereof. DISTRIBUTOR agrees to notify
PRINCIPAL of any leads of interest granted for any Product.

 

4. The DISTRIBUTOR guarantees
that:

 

i. it shall
not conduct any reverse engineering activities upon the Products and shall be liable for any infringement in relevant to any Intellectual
Property Right owned by the PRINCIPAL thereof.

 

ii.
It shall take full responsibility to paste any trademark, mark, slogan, company name, or
whatever any other mark upon the Products except those of the PRINCIPAL's. And the PRINCIPAL should be exempted from any disputes
relating to aforesaid marks.

    	8

    	 

    

 

XI. Effective Date, Duration,
Termination

 

(1) This Contract shall come
into effect after both Parties have signed it ("Effective date"), and shall initially remain in effect until December.
31st, 2009 ("Expiration Date. This Contract shall be extended upon expiration for another calendar year unless DISTRIBUTOR
does not meet the minimum distribution goals as defined in Exhibit II ("Minimum Turnover"), or the two parties cannot
agree on the minimum distribution goals for the next year, or previously terminated by either party for any other reason upon not
less than thirty (30) calendar days prior written notice to the other party, with a six (6) month probation, or the Parties agree
on an extension prior to the Expiration Date.

 

(2) If the DISTRIBUTOR becomes
insolvent or bankrupt or breaches a provision of this Contract and does not remedy such breach within thirty (30) calendar days
of written notice by the PRINCIPAL, the PRINCIPAL may terminate this Contract in whole or in part effective thirty (30) calendar
days after said notice was given. If the PRINCIPAL becomes bankrupt or insolvent or breaches a material provision hereof and does
not commence to remedy such breach within thirty (30) calendar days of being given written notice by the DISTRIBUTOR, the DISTRIBUTOR
may terminate this Contract in whole or in part effective thirty (30) calendar days after such notice was given.

 

(3) In regard to any orders
already been made by DISTRIBUTOR before the expiration or termination of this Contract, this Contract shall fully remain in effect
beyond the respective expiration or termination date. The foregoing shall not apply, if this Contract is terminated by PRINCIPAL
due to DISTRIBUTOR's bankruptcy or insolvency.

 

XII. Claims

 

1. Within 15 days after
the arrival of the Products at final CIF Port destination should the specification, quantity or appearance of the modules be found
not to be in conformity with the stipulations of this Contract; except for those claims for which the insurance company or the
owners of the vessel are liable, the DISTRIBUTOR shall, based on the Inspection ,Certificate issued by an office of the Authorized
Administration of Import and Export Commodities Inspection of the importing country, have the right to claim replacement with new
Products (in case of total failure), or financial compensation limited to the cost of the Products in question.

    	9

    	 

    

 

 

2. The PRINCIPAL, upon verification
of the DISTRIBUTOR's claim, shall be responsible for complete or partial replacement of the commodity or shall devaluate the Products
according to the state of defects.

 

3. The PRINCIPAL shall not
be held responsible for the delay in shipment or non-delivery of the Products, or for failure to manufacture, deliver or perform
due to the acts of the DISTRIBUTOR including failure of the DISTRIBUTOR to supply to the PRINCIPAL in a timely manner with all
necessary information, required sample parts or other specified items required by PRINCIPAL to design, manufacture and test the
Product.

 

XIII. Force Majeure

 

The PRINCIPAL
shall not be held responsible for the delay in shipment or non-delivery of the due to Force Majeure, such as,
war, severe fire, flood, typhoon, earthquake, labour strike or riots which might occur during
the process of manufacturing .or in the course of transportation, loading or transit, or such Force Majeure at any key suppliers
of the PRINCIPAL; The PRINCIPAL shall inform the DISTRIBUTOR immediately of the occurrence of an instant mentioned above and within
ten days thereafter, the PRINCIPAL shall send by fax or e-mail or courier to the DISTRIBUTOR for their acceptance a certificate
of the accident issued by the relevant government authority where the incident occurred as evidence thereof. Under such circumstances,
the PRINCIPAL, however, shall still be under the obligation of taking all necessary measures to hasten the delivery of the Products.

 

XIV. Choice-of-Law Clause

All matters relevant to this
Contract shall be governed and construed by the laws of People's Republic of China.

    	10

    	 

    

 

 

XV. Dispute Settlement/Arbitration
Clause

 

All disputes in
connection with this Contract or the execution thereof shall be settled through friendly negotiations. In case no settlement can
be reached through negotiations, the case should then be submitted for arbitration to China International Economic and Trade Arbitration
Commission Shanghai Branch. The arbitration shall take place in Shanghai. And the arbitration language shall be in English.
The verdict rendered by the said Commission shall be final; and binding upon both Parties;
neither Party shall seek recourse to a law court or other authorities for revising the decision. The arbitration fee shall be borne
by the losing Party.

 

XVI. Taxes and Duties

 

All taxes and duties in connection
with the execution of this Contract shall be

paid as follows:

 

1. Levied by the
Chinese government shall be borne by the PRINCIPAL.

 

2. Levied by the
government of the importing country shall be borne by the DISTRIBUTOR.

 

XVII. Non- Competition Clause/Confidentiality

 

1. DISTRIBUTOR shall not distribute
or promote the sales of any products competitive with or similar to the Products in the Territory.

 

2. The Parties acknowledge
and agree that during the term of this Contract that they may gain access to and become acquainted with information critical to
the other Party's business, such as business and trade secrets and/or information, trade and business secrets pertaining to other
companies affiliated with that Party. The Parties agree that they shall not disclose any such information, business or trade secrets,
neither directly nor indirectly, to any other person or legal entity. This covenant to keep confidential shall remain in force
after termination of this Contract to the full extent permitted by applicable law.

    	11

    	 

    

 

XVIII. PRINCIPAL Standard
Warranty Statement and Conditions of Sales

 

PRINCIPAL standard warranty
statement and conditions of sales should apply to any issues not specifically covered by this Contract.

 

 

XIX. Entire Contract and
Amendments

 

1. In respect
of the this Contract and without consideration of the subsequent purchase order or conditions of sale for each separate sale, this
Contract including EXHIBIT I and II shall constitute an integral part of the entire Contract between the Parties with regard to
its subject matter. 'This Contract shall supersede all
other prior oral or written Contracts between the Parties hereto.

 

2. Any amendments to, or modifications
of this Contract shall become effective only when in writing and signed by the Parties.

 

3. Headings of this Contract
are only for the purpose of reference, and have no influence to the interpretation of this Contract.

 

XVIIII. Severability Clause

 

In the event any
provision of this Contract proves unenforceable or invalid for whatever reason, the remaining provisions of this Contract shall
be unaffected by such holding, but remain in full force
and effect.

 

IN WITNESS THEREOF,
this Contract is made in English and signed by both Parties in two original copies, each Party holds one copy.
This Contract is effective from the date both Parties have signed.

 

	Canadian Solar Inc
	
        /s/

        Authorization

	Nov. 24. 2008
	Location, Date, Stamp and Signature of Canadian Solar Inc.

 

	James Zhang, CEO/President
	/s/James Zhang 11/24/08 Walnut, CA, USA
	Location, Date, Stamp and Signature of Sunvalley Solar, Inc

 

    	12

    	 

    

 

 

Exhibit I

 

Commodity, Specification, and Delivery Schedule
for the current Project:

 

Brand Name: "CSI"

 

	Schedule	
        Commodity &

        Specification
	
        Quantity

        (KW)
	Price Per W and Conditions
	Before March 2009	
        Regular CS-220/230/240P

        E-modules

        CS6P-PE-170-210W
	200 KW	Per Orders
	Before June 2009	400KW
	Before Sept. 2009	500KW
	Before Dec. 2009	900KW
	Total	 	2000KW	 

    	13

    	 

    

 

 

Exhibit II

 

Minimum Turnover;

 

Not less than 1,500,000 Watts per year during
the effective period of this Contract.

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