Approval of Lease for Temporary Library Services Site at 6500 Hollister Ave.

Agenda Item A.1

CPMS CONSENT CALENDAR
Meeting Date: February 25, 2025

TO: Mayor and Councilmembers

SUBMITTED BY: Matthew R. Fore, General Services Director

SUBJECT: Approval of Lease for Temporary Library Services Site at 6500 Hollister Ave.

RECOMMENDATION:

A. Authorize the City Manager to execute a lease , subject to final negotiation, and in a form acceptable to the City Attorney, with 6500 Hollister, LLC for the spa ce located at 6500 Hollister Ave., Suite 105 for use as a temporary Library space, for an initial term of two years, beginning on April 1, 2025, with four (4) additional six - month extensions, and for an estimated two-year rent of $226,577 through March 31, 2027; and

B. Authorize the transfer of $516,000 from CIP No 9127, Goleta Community Center Renovation, and CIP No. 9131, Historic Train Depot Preservation, to Program 2100, to cover costs associated with the provision of temporary Library services during construction of the Goleta Valley Library ADA, Safety, and Bu ilding Improvement Project, CIP No. 9130, as discussed in the Fiscal Impact Section.

BACKGROUND:

On October 1 and November 19, 2024, Staff presented to Council several options for the provision of temporary Library services during construction of the Gol eta Valley Library ADA, Safety, and Building Improvements Project (Project) . On November 19, 2024, Council directed Staff to pursue a short -term lease at 6500 Hollister Avenue from which Library services could be provided.

DISCUSSION:

Since November 2024, Staff have negotiated with Hayes Commercial Group, the broker for 6500 Hollister, LLC (Lessor), and have substantially agreed on the following terms for a lease of 6500 Hollister Avenue, Suite 105:

1. Leasable Space: 3,503 square feet (SF), comprised of both exclusive use (Library operations) and common space (e.g., restrooms, lobby area, communal break room, etc.).

1 Meeting Date: February 25, 2025

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2. Term: Two (2) years commencing on April 1, 2025, and ending March 31, 2027. The lease provides four (4) additional six-month extensions through March 31, 2029, should the City need additional time beyond the initial two-year term.

3. Rent: Rent during the first 12 months is estimated to be $9,282.95 per month consisting of base rent ($6,130.25); the City’s proportional share of operating costs ($1,961.68) including maintenance and repair of common spaces, property tax, and insurance; and the City’s proportional share of utilities ($1,191.02).

The following is the schedule of Base Rent during the initial lease term and additional four, six-month extensions:
 April 1, 2025 – March 31, 2026: $6,130.25
 April 1, 2026 – March 31, 2027: $6,341.16
 April 1, 2027 – March 31, 2028: $6,531.40 (lease extensions 1 & 2)  April 1, 2028 – October 31, 2028: $6,727.34 (lease extensions 3 & 4)

4. Initial Payment: Upon lease execution, the City shall pay a total of $18,565.90 comprised of first month rent and shared expenses of $9,282.95 and a security deposit of $9,282.95.

5. Access: The City shall have access to the property 24 hours per day, 7 days per week.

City Staff shall have access to the exclusive leased space as well as common spaces such as a shared break room for building tenants. However, Library patrons will only have access to the lobby (and restrooms) and the exclusive leased space.

6. Parking: the lease includes ten (10) reserved parking spaces. As a courtesy, the Lessor is also allowing the City to use an additional ten (10) parking spaces until Suite 100 is leased to another party. As a condition of this additional parking, City agrees to have City Staff park at City Hall.

7. Tenant Improvements : the Lessor, using its own contractor, shall make several improvements to the space including removal of partition walls, ceiling and flooring repairs, and installation o f additional electrical outlets. Since City funds will be used for the tenant improvements, the work must be performed at prevailing wage. As such, the City will register the work with the Department of Industrial Relations and the contractor will have to comply with prevailing wage law.

It should be noted that the initial construction cost estimate for the tenant improvements totaled approximately $38,000. However, the estimate did not account for prevailing wage rates. The updated construction cost estimate, based upon prevailing wages and a slightly expanded scope of work, is now approximately $75,000. The broker indicated that the Lessor may be willing to share the costs of some of the tenant improvements; therefore, the fin al cost is still under n egotiation and will be reflected in the final lease documents. Finally, the Lessor is planning to replace portions of the HVAC system on the building. This work will not be completed by April 1, 2025, but will nonetheless benefit the City once Staff occupy the leased space.
2 Meeting Date: February 25, 2025

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8. Tenant Rules: the City will have to comply with several rules and regulations for the use of exclusive and common leased spaces including the following:

 Lessee shall not suffer or permit the obstruction of common areas including driveways, walkways, or stairways.
 Lessee shall not make or permit any noise or odors that annoy or interfere with other lessees or persons having business within the building.  Lessee shall be responsible for any inappropriate use of any toilet rooms, plumbing, or other utilities.
 Lessee shall not suffer or permit smoking or carrying of lighted cigars or cigarettes in areas reasonably designated by Lessor or by applicable governmental agencies as non-smoking areas.
 Parking shall be used for parking by vehicles no longer than full -sized passenger automobiles (i.e., No Oversized Vehicles are permitted in spaces reserved for the City).

Next Steps

Staff are working to make 6500 Hollister Avenue ready for service by June 1, 2025. This is largely predicated on the completion of the tenant improvements at the site. Staff have issued a Request for Proposals for professional moving services to relocate a portion of the Library collection to 6500 Hollister Avenue. The service cont ract will be presented to Council for consideration in spring of 2025.

FISCAL IMPACTS:

Many of the costs associated with the day-to-day use of 6500 Hollister Ave. are captured in the General Services Operating Budget. However, the current budget is insufficient to cover other substantial costs related to securing the lease , establishing information technology services, and relocating a portion of the Library collection from Fairview Avenue location to the temporary location. These costs are outlined in the table below.

FY 2024-26 Est. Costs
Cost Component

Estimated Cost
Lease (1st Year) $111,395
Security Deposit $9,283
Tenant Improvements $75,000
Black Gold/IT Infrastructure $20,000
Moving Costs (pre and post construction)* $300,000*
Subtotal FY24-25 $515,678
Lease (2nd Year) $115,182
Subtotal FY25-26 $115,182
Estimated Total $630,860
*Current estimate of moving costs. Costs will be refined once bids are received in spring of 2025.
3 Meeting Date: February 25, 2025

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Staff recommends that Council approve a transfer of $516,000 to cover the first year of the two -year lease agreement , tenant improvements, and relocation costs . Additional appropriations of approximately $115,000 will be needed in FY 2025 -26 to cover the second year of the lease term and any additional exte nsions required, if any. The following table summarizes the recommended budget transfer adjustments to support the one-time temporary library relocation costs.

Transfer From Amount
101-90-9127-57070 ($125,000)
101-90-9127-57071 ($150,000)
101-90-9131-57070 ($240,000)
101-90-9131-57071 ($1,000)
Subtotal ($516,000)
Transfer In
101-20-2100-54014 $516,000

The $275,000 transfer from the Goleta Community Center Campus Renovation (CIP No. 9121) will reduce the General Fund portion of the project. The project will be deferred until additional future funding is identified and made available.

The $241,000 transfer from the Historic Train Station Preservation (CIP No. 9131) will reduce a portion of the amount of the General Fund programmed to his project, leaving a General Fund budget balance of approximately $49,200. The project will be deferred until additional future funding is identified and made available.

The additional $115,182 needed for the second year of the lease in FY 2025-26 will need to be prioritized and programmed as part of the upcoming budget process. Depending on the final projected numbers and source of funds, this may result in cost reductions in other areas of the overall General Fund budget, or if no other funding source can be identified.

LEGAL REVIEW BY: Isaac Rosen, Acting City Attorney

APPROVED BY: Robert Nisbet, City Manager

ATTACHMENT:

1. Draft Lease Agreement (Subject to Final Negotiation)

4 ATTACHMENT 1

Draft Lease Agreement (Subject to Final Negotiation)

5 1. BasicProvisions ("BasicProvisions").

1.1 ParƟes. This Lease("Lease"), datedforreference purposesonly February 1, 2025 ,ismade byand between 6500 Hollister LLC ("Lessor")and City of Goleta ("Lessee"), (collecƟvelythe" ParƟes", orindividually a"Party").

1.2(a) Premises: Thatcertain porƟonofthe Project(as deﬁnedbelow),commonly knownas (streetaddress,suite, city,state): 6500 Hollister Ave., Suite 105, Goleta, CA 93117 ("Premises"). ThePremises arelocatedin theCounty of Santa Barbara ,and consistof approximately 3,503 rentablesquare feetandapproximately useable squarefeet. In addiƟon toLessee's rightstouse andoccupy thePremises as hereinaŌer speciﬁed, Lessee shallhavenon-exclusive rightsto theCommon Areas(as deﬁned inParagraph 2.7below)as hereinaŌer speciﬁed, butshallnot have anyrights tothe roof,theexterior walls,the areaabove thedroppedceilings, orthe uƟlityracewaysof thebuilding containingthePremises ("Building")or toany otherbuildings inthe Project. The Premises,the Building,the CommonAreas,the landupon whichtheyare located,along withallother buildingsand improvements thereon,are herein collecƟvely referredtoas the"Project." The Projectconsistsof approximately 75,659 rentablesquarefeet. (See alsoParagraph2)

1.2(b) Parking: zero (0) unreservedand ten (10) reservedvehicle parkingspacesidentifiedas"PermanentSpaces"on ExhibitB,attachedtothisLease, at amonthlycost of $0 perunreservedspace and $0 perreserved space. (See Paragraph2.6and ExhibitB)Lesseeshallbeallowedtouseanadditional10reservedparkingspacestemporarilyuntilLessorleasessuite100. (See ExhibitB).

1.3 Term: Two (2) yearsand zero (0) months("Original Term")commencing April 1, 2025 ("Commencement Date")and ending March 31, 2027 ("ExpiraƟonDate"). (Seealso Paragraph3)

1.4 Early Possession: Ifthe Premisesareavailable Lesseemay havenon-exclusivepossession ofthe Premisescommencing upon lease execution and delivery to Lessor of all Base Rent and Other Monies due on Execution as well as a copy of Lessee's Insurance Certificate as required pursuant to this Lease ("Early PossessionDate"). (See alsoParagraphs3.2 and3.3)

1.5 Base Rent: $6,130.25 per month("BaseRent"), payableon the 1st day ofeach monthcommencing April 1, 2025 . (Seealso Paragraph4)
Ifthis boxis checked,thereare provisionsin thisLease fortheBase Rentto beadjusted. SeeParagraph 50 .

1.6 Lessee's Shareof OperaƟngExpenses. four and 63/100 percent( 4.63 %)("Lessee's Share"). Intheevent thatthe sizeof the Premisesand/or theProject are modiﬁedduring theterm ofthis Lease,Lessorshall recalculateLessee's Shareto reﬂect such modiﬁcaƟon.

1.7 Base Rentand OtherMonies PaidUpon ExecuƟon:

1.8 Agreed Use: Public library, office and incidental uses . (SeealsoParagraph 6)

1.9 Insuring Party. Lessoris the"InsuringParty". (Seealso Paragraph8)

1.10 Real EstateBrokers. (Seealso Paragraph15and 25)
agency relaƟonships inthis Leasewiththe followingreal estatebrokers ("Broker(s)")and/ortheir agents("Agent(s)"):

Lessor'sBrokerage Firm Hayes Commercial Group, Inc. License No. 02017017 Isthe brokerof(check one): theLessor; or boththe LesseeandLessor (dualagent).

Lessor'sAgent Francois DeJohn; Dylan Ward LicenseNo. 01144570; 01472452 is(check one): theLessor'sAgent (salespersonor brokerassociate); or both theLessee's Agentand theLessor'sAgent (dualagent).

Lessee'sBrokerage Firm Hayes Commercial Group, Inc. License No. 02017017 Isthe brokerof(check one): theLessee; or boththe LesseeandLessor (dualagent).

Lessee'sAgent Francois DeJohn LicenseNo. 01144570 is (checkone): theLessee's Agent(salesperson orbrokerassociate); or boththe Lessee'sAgent andtheLessor's Agent(dual agent). separate wriƩen agreement(or ifthere isnosuch agreement,the sumof or 6 %ofthe totalBase Rent)forthe brokerageservices rendered bythe Brokers.

1.11 Guarantor. The obligaƟons oftheLessee underthis Leaseare tobeguaranteed by ("Guarantor"). (SeealsoParagraph 37)

1.12 BusinessHours forthe Building: 8:00 a.m. to 6:00 p.m.,Mondays throughFridays(except BuildingHolidays) and 8:00 a.m. to 6:00 p.m.on Saturdays(except BuildingHolidays). "BuildingHolidays" shallmeanthe datesof observaƟonof NewYear'sDay, President'sDay, MemorialDay,

STANDARDMULTI-TENANTOFFICE LEASE-NET
(a) Base Rent: $6,130.25 for theperiod April 1-30, 2025 . (b) OperaƟngExpenses: The currentesƟmatefor theperiod April 1-30, 2025 is $1,961.68 . (c) SecurityDeposit: $9,282.95 ("SecurityDeposit "). (Seealso Paragraph5) (d) Parking: $0 for theperiod n/a .
(e) Other: $1,191.02 for estimated utilities for April 1-30, 2025 . (f) Total DueUpon ExecuƟon ofthis Lease: $18,565.90 .
(a) RepresentaƟon: Each Partyacknowledgesreceiving aDisclosure RegardingReal EstateAgencyRe laƟonship, conﬁrms and consentstothe following (b) Paymentto Brokers. Upon execuƟonand deliveryof thisLeaseby both ParƟes, Lessorshall paytothe Brokersthe brokeragefeeagreed toin a

SUBJECT TO FINAL NEGOTIATIONS
6 IndependenceDay, LaborDay, ThanksgivingDay,Christmas Day,and . Lesseeshallhavetwenty-fourhouraccess,sevendaysa week.

1.13 Lessor SuppliedServices. Notwithstanding theprovisionsof Paragraph11.1, LessorisNOT obligatedto providethefollowing withinthe Premises:

Janitorialservices
Electricity
Other(specify):

1.14 AƩachments. AƩachedhereto arethe following,allof which consƟtute apartof thisLease:
anAddendum consisƟngof Paragraphs 50 (Rent Adjustments) through 51 (Options to Extend) ; aplot plan depicƟng thePremises;ExhibitA
acurrent setof theRulesand RegulaƟons;
aWork LeƩer; ExhibitC1&C 2
ajanitorial schedule;
other(specify): Parking Plan - Exhibit B; 2024 Budget for Operating Expenses and Utilities - Exhibit D; Building Common Areas - Exhibit E .

2. Premises.

2.1 Leƫng. Lessor herebyleases toLessee,and Lesseehereby leasesfromLessor, thePremises, fortheterm, atthe rental,and uponallof theterms, covenantsand condiƟonsset forthinthis Lease. Whilethe approximatesquarefootage ofthe Premisesmayhave beenused inthe markeƟng ofthe Premisesfor purposesof comparison,the BaseRentstated hereinis NOT Ɵed tosquarefootage andis notsubjectto adjustmentshould theactualsize bedetermined tobe diﬀerent. NOTE: Lesseeisadvised toverify theactual sizepriorto execuƟngthis Lease.

2.2 CondiƟon. Lessor shalldeliver thePremisesto Lesseein aclean condiƟon onthe CommencementDateor theEarly PossessionDate, whichever ﬁrstoccurs ("StartDate"), andwarrants thatthe exisƟng electrical,plumbing, ﬁresprinkler, lighƟng, heaƟng, venƟlaƟng andair condiƟoningsystems("HVAC"), andall otheritems whichthe Lessoris obligatedtoconstruct pursuantto theWork LeƩer aƩachedheretoasExhibitC , ifany, otherthanthose constructedby Lessee,shall beingood operaƟng condiƟon onsaid date,thatthe structuralelements ofthe roof,bearingwalls andfoun daƟon oftheUnit shallbe freeofmaterial defects,and thatthe Premisesdo notcontain hazardouslevelsof anymold orfungi deﬁnedastoxic underapplicable stateorfederal law. Lessoralsowarrants, thatunless otherwise speciﬁedin wriƟng,Lessor isunawareof (i)any recorded NoƟces ofDefault aﬀecƟng thePremise; (ii)anydelinquent amountsdue underanyloan securedby the Premises;and (iii)any bankruptcyproceeding aﬀecƟng thePremises.

2.3 Compliance. Lessor warrantsthat tothebest ofits knowledgetheimprovements onthe Premisesandthe CommonAreas complywith thebuildingcodes, applicablelaws, covenantsor restricƟonsofrecord, regulaƟons,and ordinances("Applicable Requirements")thatwere in eﬀect atthe Ɵme thateach improvement, or porƟon thereof,was constructed. Said warrantydoes notapply totheuse towhich Lesseewillput thePremises, modiﬁcaƟonswhichmay berequired bythe Americanswith DisabiliƟesAct oranysimilar lawsas aresult ofLessee'suse (seeParagraph 49),orto any AlteraƟons or UƟlity InstallaƟons (as deﬁned inParagraph

7.3(a))made orto bemadeby Lessee. NOTE:Lessee isresponsiblefor determiningwhether ornotthe zoningand otherApplicableRequirements areappropriate forLessee's intendeduse, andacknowledgesthat pastuses ofthe Premisesmayno longerbe allowed. If thePremises donotcomply withsaid warranty,Lessor shall,except asotherwise provided,promptly aŌer receiptof wriƩen noƟce fromLessee seƫng forthwith speciﬁcitythenature andextent ofsuchnon-compliance, recƟfythe same. IftheApplicable Requirementsare hereaŌerchanged soasto requireduring thetermof thisLease the construcƟonof anaddiƟon toor an alteraƟonof thePremises, theremediaƟonof anyHazardous Substance,or thereinforcementor otherphysical modiﬁcaƟonofthe Premises("Capital Expenditure"), Lessorand Lesseeshall allocatethecost ofsuch workas follows:
(a) Subject toParagraph 2.3(c)below,if suchCapital Expendituresare requiredasa resultof the speciﬁcand uniqueuse ofthePremises byLessee as comparedwith usesby tenantsingeneral, Lesseeshall befully responsibleforthe costthereof, provided,however,that ifsuch CapitalExpenditureis requiredduring thelast 2years ofthisLease andthe costthereof exceeds6months' BaseRent, Lesseemayinstead terminatethis LeaseunlessLessor noƟﬁesLessee, inwriƟng, within10 days aŌer receiptofLessee's terminaƟon noƟce thatLessor haselectedto paythe diﬀerencebetweenthe actualcost thereofandthe amountequal to6 months'Base Rent. IfLesseeelects terminaƟon,Lessee shallimmediately ceasetheuse ofthe Premiseswhichrequires suchCapital Expenditureanddeliver toLessor wriƩen noƟce specifyinga terminaƟondateat least90 days thereaŌer .Such terminaƟon dateshall, however,inno eventbe earlierthanthe lastday thatLessee couldlegally uƟlizethe Premiseswithoutcommencing suchCapital Expenditure. (b) Ifsuch CapitalExpenditure isnotthe resultof the speciﬁcand uniqueuse ofthe PremisesbyLessee (suchas, governmentallymandatedseismic modiﬁcaƟons),then Lessorshall payforsuch CapitalExpenditure andLessee shallonlybe obligatedto pay,eachmonth duringthe remainderofthe termof thisLease orany extensionthereof, onthedate thaton whichthe BaseRentis due,an amountequalto 1/144thof the porƟonof suchcosts reasonablyaƩributable tothe Premises. Lesseeshall payIntereston thebalance butmay prepayits obligaƟon atany Ɵme. If, however,such CapitalExpenditureis requiredduring thelast 2years ofthis Leaseor ifLessorreasonably determinesthat itis noteconomicallyfeasible topay itssharethereof, Lessorshall havethe opƟon toterminate thisLease upon 90days prior wriƩen noƟce toLessee unlessLessee noƟﬁesLessor, inwriƟng,within 10days aŌerreceiptof Lessor's terminaƟon noƟce thatLessee willpay forsuch CapitalExpenditure. If Lessordoesnot electto terminate,and failstotender itsshare ofanysuch CapitalExpenditure, Lesseemayadvance suchfunds anddeduct same,with Interest,from Rent unƟlLessor's shareof suchcosts havebeenfully paid. IfLesseeis unableto ﬁnanceLessor'sshare, orif thebalance oftheRent due andpayable forthe remainderofthis Leaseis not suﬃcient tofullyreimburse Lesseeon an oﬀsetbasis, Lesseeshall havetheright toterminate thisLease upon30 days wriƩen noƟce to Lessor.
(c) Notwithstandingthe above,the provisionsconcerningCapital Expendituresare intendedto applyonlyto non-voluntary,unexpected, andnew ApplicableRequirements. If theCapitalExpenditures areinstead triggeredby Lesseeasa resultof anactualor proposedchange inuse,change inintensity ofuse, or modiﬁcaƟonto thePremises then,andin thatevent, Lesseeshall either:(i)immediately ceasesuch changeduseor intensityof useand/ortake suchother stepsas maybe necessaryto eliminatetherequirement forsuch CapitalExpenditure, or(ii)complete suchCapital Expenditureatits ownexpense. Lesseeshall nothave any
rightto terminatethis Lease.

2.4 Acknowledgements. Lessee acknowledgesthat: (a)it hasbeen givenanopportunity toinspect andmeasurethe Premises,(b) Lesseehas beenadvisedby Lessorand/or Brokersto saƟsfyitselfwith respectto thesize and condiƟonof thePremises (includingbutnot limitedto theelectrical,HVAC and ﬁre sprinkler systems,security, environmental aspects,andcompliance withApplicable Requirements),and theirsuitabilityfor Lessee'sintended use,(c)Lessee hasmade such invesƟgaƟonas itdeems necessarywithreference tosuch maƩersand assumesallresponsibility thereforas thesamerelate toits occupancyofthe Premises,(d) itis 7 notrelying onany representaƟonasto thesize ofthe Premisesmadeby Brokersor Lessor,(e)the squarefootage ofthePremises wasnot materialto Lessee's decisionto leasethe Premisesandpay theRent statedherein, and(f)neither Lessor,Lessor's agents,norBrokers havemade anyoralor wriƩen representaƟons or warranƟeswith respectto saidmaƩersother thanas setforth inthisLease. In addiƟon,Lessoracknowledges that:(i) Brokershavemade no representaƟons, promisesor warranƟesconcerning Lessee'sabilityto honorthe Leaseor suitabilitytooccupy thePremises, and(ii)it isLessor's soleresponsibilityto invesƟgatethe ﬁnancialcapability and/orsuitability ofallproposed tenants.

2.5 Lessee asPrior Owner/Occupant. The warranƟesmade byLessor inParagraph2 shallbe ofnoforce or eﬀect ifimmediately priortothe StartDate, Lessee wasthe owneror occupantofthe Premises. Insuch event,Lesseeshall beresponsible foranynecessary correcƟvework.

2.6 Vehicle Parking. Solong asLesseeis notin default,andsubject tothe Rulesand RegulaƟons aƩached hereto, andas establishedbyLessor from Ɵme to Ɵme,Lessee shallbe enƟtledto rentand use thenumber ofparking spacesspeciﬁedin Paragraph1.2(b) atthe rentalrateapplicable from Ɵme to Ɵme formonthly parkingas setby Lessorand/orits licensee. Lessee'semployeesshallparkatCityHall(130Cremona)andtheon-siteparkingspacesshallbe reservedforLessee'svisitors.Lessee'sreservedvisitorparkingspacesaredesignatedontheattachedExhibitBandLessee'snameshall bestenciledonsaidspacesbyLessor.
(a) If Lesseecommits, permitsorallows anyof theprohibited acƟviƟesdescribedin theLease ortherules thenin eﬀect,thenLessor shallhave theright, without noƟce, in addiƟon tosuchother rightsand remediesthat itmayhave, toremove ortowaway thevehicle involvedandcharge thecost toLessee, whichcost shallbe immediatelypayable upondemandby Lessor.
(b) Themonthly rentperparking space speciﬁed inParagraph 1.2(b)issubject tochange upon30days prior wriƩen noƟce toLessee. The rentfor the parkingis payableone monthinadvance priorto the ﬁrst dayofeach calendarmonth.

2.7 Common Areas- DeﬁniƟon. The term"Common Areas"is deﬁnedasall areasand faciliƟesoutsidethe Premisesand withintheexterior boundaryline of theProject andinterior uƟlityracewaysand installaƟonswithin thePremises thatareprovided anddesignated bytheLessor from Ɵme to Ɵmefor thegeneral nonexclusiveuse ofLessor, Lesseeandother tenantsof theProject andtheir respecƟve employees,suppliers, shippers,customers,contractors andinvitees, including, butnot limitedto, commonentrances,lobbies, corridors,stairwells, publicrestrooms, elevators,parkingareas, loadingand unloadingareas,trash areas,roadways, walkways,driveways andlandscaped areas. Notwithstandinganythinginthislease,Lessee'semployeesshallbepermittedtousethebuilding restroomsandamenitieswithintheCommonAreas,however, Lessee'svisitorsshallonlybepermittedtousetheCommonAreaswithin theEastLobby,wheredepictedonExhibitB.

2.8 Common Areas- Lessee'sRights. Lessorgrants toLessee, forthe beneﬁt ofLessee anditsemployees, suppliers,shippers, contractors,customers and invitees,during theterm ofthisLease, thenon-exclusive rightto use,incommon withothers en Ɵtledtosuch use,the CommonAreasas theyexist from Ɵme to Ɵme, subjectto anyrights, powers,andprivileges reservedby Lessorunder thetermshereof orunder thetermsof anyrules and regulaƟonsor restricƟonsgoverning the useof theProject. Underno circumstancesshall theright hereingrantedto usethe CommonAreasbe deemedto includetheright tostore anyproperty, temporarily orpermanently, inthe CommonAreas. Anysuch storageshall be permiƩedonly bythe priorwriƩenconsent ofLessor orLessor'sdesignated agent,which consent maybe revokedat anyƟme. Inthe eventthat anyunauthorizedstorage shalloccur, thenLessorshall havethe right,without noƟce, in addiƟon tosuch otherrights andremedies thatit mayhave,to removethe propertyand chargethecost toLessee, whichcostshall beimmediately payableupondemand byLessor.

2.9 Common Areas- Rulesand RegulaƟons. Lessor orsuch otherperson(s)as Lessormay appointshallhave theexclusive controland managementofthe CommonAreas andshall havetheright, from Ɵme to Ɵme, toadopt,modify, amendand enforcereasonablerules and regulaƟons ("Rulesand RegulaƟons") forthe management,safety, care,and cleanlinessofthe grounds,the parkingand unloadingofvehicles andthe preservaƟonofgood order,as wellasfor theconvenience of otheroccupants ortenants oftheBuilding andthe Projectand theirinvitees. TheLessee agreestoabide byand conformtoall suchRules and RegulaƟons, andshall useits best eﬀorts tocauseits employees,suppliers, shippers,customers, contractorsandinvitees toso abideandconform. Lessor shallnotbe responsibleto Lessee forthe noncompliancewith saidRulesand RegulaƟonsby othertenants oftheProject.

2.10 Common Areas-Changes . Lessor shallhavethe right,in Lessor'ssole discreƟon, from Ɵme to Ɵme:
(a) To makechanges totheCommon Areas,including, without limitaƟon, changesinthe locaƟon,size, shapeandnumber ofthe lobbies,windows, stairways,air shaŌs,elevators, escalators,restrooms,driveways, entrances,parking spaces,parking areas,loadingand unloadingareas, ingress,egress, direcƟon of traﬃc,landscaped areas,walkways anduƟlityraceways;
(b) Toclose temporarilyany oftheCommon Areasfor maintenancepurposesso longas reasonableaccess tothePremises remainsavailable; (c) Todesignate otherland outsidetheboundaries ofthe Projectto beapart ofthe CommonAreas; (d) Toadd addiƟonalbuildings andimprovementsto theCommon Areas; (e) To usetheCommon Areaswhile engagedin making addiƟonalimprovements, repairsor alteraƟonstothe Project,or any porƟonthereof; and (f) To doandperform suchother actsandmake suchother changesin,to orwith respectto theCommonAreas andProject asLessormay, inthe exerciseof soundbusiness judgment,deemto beappropriate.

3. Term.

3.1 Term. The CommencementDate, ExpiraƟonDateand OriginalTerm ofthisLease areas speciﬁedinParagraph 1.3.

3.2 Early Possession. Anyprovision herein granƟngLessee EarlyPossession ofthePremises issubject toand condiƟoned uponthe Premisesbeing availablefor suchpossession priorto theCommencementDate. Any grantof EarlyPossessiononly conveys a non-an exclusiveright tooccupythe Premises. IfLesseetotally or parƟallyoccupies thePremises priortothe CommencementDate, the obligaƟon topay Base Rentshall beabated fortheperiod ofsuch EarlyPossession. Allother termsof thisLease (includingbut notlimitedto the obligaƟons topayLessee's Shareof theOper aƟng Expenses)shallbe in eﬀect duringsuchperiod. Any suchEarly Possessionshall not aﬀect the ExpiraƟonDate.

3.3 Delay InPossession. Lessor agreestouse commerciallyreasonable eﬀortstodeliver exclusivepossession ofthePremises toLessee bythe CommencementDate. If, despitesaid eﬀorts, Lessoris unableto deliverpossessionby suchdate, Lessorshallnot besubject toanyliability therefor,nor shallsuch failure aﬀect thevalidity ofthisLease orchange the ExpiraƟon Date. Lessee shallnot, however,beobligated topay Rentorperform itsother obligaƟons unƟl Lessor
deliverspossession ofthe Premisesandany periodof rentabatement thatLesseewould otherwisehave enjoyedshallrun fromthe dateofdelivery ofpossession and conƟnuefor aperiod equaltowhat Lesseewould otherwisehave enjoyedunderthe termshereof, butminusany daysof delaycausedby theacts oromissions of Lessee. Ifpossession isnotdelivered within60 days aŌer theCommencementDate, asthe samemaybe extendedunder thetermsof anyWork LeƩerexecuted by ParƟes,Lessee may,at itsopƟon,by noƟcein wriƟngwithin 10days aŌer theend ofsuch60 dayperiod, cancelthisLease, inwhich eventthe ParƟesshallbe dischargedfrom all obligaƟons hereunder. If suchwriƩen noƟce is notreceivedby Lessorwithin said10day period,Lessee's righttocancel shallterminate. If possessionof thePremises isnotdelivered within120 days aŌer theCommencementDate, thisLease shallterminateunless otheragreements arereachedbetween Lessorand Lessee,in wriƟng.

3.4 Lessee Compliance. Lessorshall notberequired todeliver possessionofthe Premisesto Lessee unƟlLessee complieswith itsobligaƟon toprovide evidenceof insurance(Paragraph 8.5). Pending deliveryof suchevidence, Lesseeshallbe requiredto performallof its obligaƟons underthisLease fromand aŌerthe 8 StartDate, includingthe paymentofRent, notwithstandingLessor's elecƟonto withholdpossessionpending receiptof suchevidenceof insurance. Further,ifLessee isrequired toperform anyother condiƟons priorto orconcurrent withtheStart Date,the StartDateshall occurbut Lessormayelect towithhold possession unƟl such condiƟonsare saƟsﬁed.

4. Rent.

4.1 Rent Deﬁned. Allmonetary obligaƟonsofLessee toLessor undertheterms ofthis Lease(exceptfor theSecurity Deposit)are deemedtobe rent(" Rent").

4.2 OperaƟng Expenses. Lesseeshall paytoLessor duringthe termhereof,in addiƟonto theBaseRent, Lessee'sShare ofall OperaƟngExpenses,as hereinaŌer deﬁned, duringeach calendaryearof theterm ofthis Lease,inaccordance withthe followingprovisions:
(a) " OperaƟng Expenses"include allcosts relaƟng tothe ownershipand operaƟonofthe Project,calculated asifthe Projectwas atleast95% occupied, including,but notlimited to,thefollowing:
(i) The operaƟon, repair,and maintenancein neat,clean,safe, goodorder and condiƟon,of thefollowing:
(aa) The CommonAreas, includingtheirsurfaces, coverings, decoraƟve items,carpets,drapes andwindow coverings,andincluding parking areas,loading andunloading areas,trashareas, roadways,sidewalks, walkways,stairways, parkways,driveways,landscaped areas,striping, bumpers, irrigaƟon systems,Common Area lighƟng faciliƟes, buildingexteriors androofs, fencesand gates; (bb) All heaƟng,air condiƟoning,plumbing,electrical systems,life safetyequipment,commu nicaƟon systemsand otherequipmentused in commonby, orfor thebeneﬁtof, lesseesor occupantsof theProject,including elevatorsand escalators,tenantdirectories, ﬁre detecƟon systemsincludingsprinkler systemmaintenance andrepair.
(cc) ThePremisesand/or anyother spaceoccupiedby atenant. (ii) Thecostof trashdisposal, janitorialand securityservices,pest controlservices, andthecosts ofany environmental inspecƟons; (iii) The costofany otherservice tobeprovided byLessor thatis elsewhereinthis Leasestated tobean "OperaƟngExpense"; (iv) The costofthe premiumsfor theinsurance policiesmaintainedby Lessorpursuant toparagraph8 andany deducƟble porƟonof aninsured loss concerningthe Buildingor theCommonAreas;
(v) Theamount oftheReal PropertyTaxes payablebyLessor pursuantto paragraph10; (vi) The costofwater, sewer,gas, electricity,and otherpubliclymandated servicesnot separatelymetered; (vii) Labor,salaries, andapplicablefringe beneﬁtsand costs,materials, suppliesandtools, usedin maintainingand/orcleaning theProject and accounƟngand managementfees aƩributabletothe operaƟonof theProject; (viii) The costto replaceequipmentor capitalcomponents suchasthe roof, foundaƟons, orexterior walls,thecost toreplace aCommonArea capital improvement,such asthe parkinglotpaving, elevatorsor fences,and/or thecostof anycapital improvementtothe Buildingor theProjectnot coveredunder the provisionsof Paragraph2.3. Providedhowever,that ifsuch equipmentor capitalcomponenthas auseful lifefor accounƟng purposesof 5yearsor morethat Lessor shallallocate thecost ofanysuch capitalimprovement overa 12yearperiod andLessee shallnotbe requiredto paymorethan Lessee'sShare of1/144th ofthecost ofsuch capitalimprovement inanygiven month;
(ix) The costto replaceequipment orimprovementsthat havea usefullifefor accounƟngpurposes of5years orless. (x) Reservesset asidefor maintenance,repairand/or replacementof CommonAreaimprovements andequipment. (b) Anyitem of OperaƟng Expensethatis speciﬁcally aƩributable tothePremises, theBuilding orto anyotherbuilding inthe Projectorto the operaƟon, repairand maintenancethereof, shallbeallocated enƟrelyto suchPremises, Building,orother building. However,anysuch itemthat isnot speciﬁcally aƩributable to theBuilding orto anyotherbuilding orto the operaƟon, repairandmaintenance thereof,shall beequitablyallocated byLessor toallbuildings inthe Project. (c) Theinclusion ofthe improvements, faciliƟesand servicesset forthin Subparagraph4.2(a)shall notbe deemedtoimpose an obligaƟon uponLessorto eitherhave saidimprovements or faciliƟesor toprovide thoseservices unlesstheProject alreadyhas thesame,Lessor alreadyprovides theservices,or Lessorhas agreedelsewhere inthis Leasetoprovide thesame orsome ofthem. (d) Lessee'sShare of OperaƟng Expensesispayable monthlyon thesameday asthe BaseRent isduehereunder. The amountofsuch paymentsshall be basedon Lessor's esƟmate ofthe OperaƟng Expenses. Within60 days aŌer wriƩen request(but notmorethan onceeach year)Lessorshall deliverto Lessee a
reasonablydetailed statementshowing Lessee'sShareof theactual OperaƟngExpenses forthepreceding year. IfLessee'spayments duringsuch yearexceedLessee's Share,Lessor shallcredit theamountof suchover-payment againstLessee's futurepayments. IfLessee's paymentsduringsuch yearwere lessthanLessee's Share, Lesseeshall payto Lessortheamount ofthe deﬁciencywithin 10days aŌer deliveryby LessortoLessee ofthe statement. (e) OperaƟng Expensesshallnot includeany expensespaid byanytenant directlyto third parƟes,or asto whichLessoris otherwisereimbursed byany thirdparty, othertenant, orbyinsurance proceeds.

4.3 Payment. Lessee shallcause paymentofRent tobe receivedbyLessor inlawful moneyofthe UnitedStates, without oﬀset or deducƟon(except as speciﬁcally permiƩed inthis Lease),onor beforethe dayon whichitis due. Allmonetaryamounts shallbe roundedtothe nearestwhole dollar. Intheevent thatany invoiceprepared byLessor isinaccuratesuch inaccuracyshall not consƟtute awaiverand Lesseeshall beobligatedto paythe amountsetforth inthis Lease. Rentfor anyperiod duringthe termhereofwhich isfor lessthan onefullcalendar monthshall beproratedbased uponthe actualnumberof daysof saidmonth. Paymentof Rentshall bemade toLessorat itsaddress statedherein ortosuch otherpersons orplaceas Lessormay from Ɵmeto Ɵmedesignate inwriƟng. Acceptanceof a paymentwhich isless thantheamount thendue shallnot beawaiver ofLessor's rightstothe balanceof suchRent,regardless ofLessor's endorsementof anycheck so staƟng. In theeventthat anycheck, draŌ,or otherinstrumentof paymentgiven byLesseeto Lessoris dishonoredforany reason,Lessee agreesto paytoLessor thesum of$25 in addiƟonto anyLate Chargeand Lessor,atits opƟon,may requireallfuture Rentbe paidbycashier's check. Paymentswill beapplied ﬁrst toaccrued latecharges and aƩorney's fees,secondto accruedinterest, thento BaseRentand OperaƟngExpenses, andanyremaining amountto anyotheroutstanding charges orcosts.

5. SecurityDeposit. Lesseeshall depositwith Lessorupon execuƟon hereofthe SecurityDeposit assecurityfor Lessee'sfaithful performanceofits obligaƟons underthis Lease. IfLesseefails topay Rent,or otherwiseDefaultsunder thisLease, Lessormayuse, applyor retainallor any porƟon ofsaid SecurityDepositfor the paymentof anyamount alreadydueLessor, forRents whichwill beduein thefuture, and/orto reimburseor compensateLessorfor anyliability, expense,loss or
damagewhich Lessormay suﬀerorincur byreason thereof. IfLessoruses orapplies allorany por Ɵonof theSecurityDeposit, Lesseeshall within10 days aŌer wriƩenrequest therefordeposit monieswithLessor suﬃcientto restoresaid SecurityDepositto thefull amountrequiredby thisLease. Ifthe BaseRent increases duringthe termof thisLease,Lessee shall,upon wriƩenrequest fromLessor,deposit addiƟonalmonies withLessorso thatthe totalamountof theSecurity Deposit shallat all Ɵmes bearthesame proporƟonto theincreased BaseRentas the iniƟal SecurityDepositbore tothe iniƟalBaseRent. Should theAgreed Usebeamended toaccommodate amaterial changeinthe businessof Lesseeor toaccommodatea sublesseeor assignee,Lessorshall havethe righttoincrease theSecurity Deposit tothe extentnecessary, inLessor'sreasonable judgment,to accountfor anyincreasedwear andtear thatthePremises may suﬀer asaresult thereof. Ifa changein controlof Lesseeoccurs duringthisLease andfollowing suchchange the ﬁnancial condiƟon ofLessee is,inLessor's reasonablejudgment, signiﬁcantlyreduced,Lessee shalldeposit such addiƟonal monieswithLessor asshall be suﬃcient tocausethe SecurityDeposit tobeat acommercially reasonablelevelbased onsuch changein 9 ﬁnancial condiƟon. Lessor shallnotbe requiredto keepthe SecurityDepositseparate fromits generalaccounts. Within90 days aŌerthe expiraƟonor terminaƟonof thisLease, Lessorshall returnthat porƟon ofthe SecurityDeposit notusedor appliedby Lessor. Lessor shallupon wriƩenrequestprovide Lesseewith an accounƟng showinghow that porƟon oftheSecurity Depositthat wasnot returnedwasapplied. No partofthe SecurityDeposit shallbeconsidered tobe heldin trust,tobear interestor tobe prepaymentforany moniesto bepaid byLesseeunder thisLease. THESECURITY DEPOSITSHALL NOTBEUSED BYLESSEE INLIEU OFPAYMENTOF THELAST MONTH'SRENT.

6. Use.

6.1 Use. Lessee shalluse andoccupythe Premisesonly fortheAgreed Use,or anyotherlegal usewhich isreasonably comparablethereto,and forno other purpose. Lesseeshall notuseor permitthe useof thePremisesin amanner thatisunlawful, createsdamage, wasteora nuisance,or thatdisturbs occupantsofor causesdamage toneighboring premisesor properƟes. Other thanguide, signalandseeing eyedogs, Lesseeshallnot keepor allowinthe Premisesany pets,animals, birds, ﬁsh, or repƟles. Lessorshall notunreasonably withholdor delayitsconsent toany wriƩenrequestfor a modiﬁcaƟon oftheAgreed Use,so longas thesamewill notimpair thestructural integrityofthe improvementsof theBuilding, willnotadversely aﬀectthe mechanical,electrical,HVAC, andother systemsofthe Building, and/orwill not aﬀect theexteriorappearance ofthe Building. IfLessorelects towithhold consent,Lessorshall within7 days aŌersuch requestgive wriƩen noƟﬁcaƟonof same,which noƟceshallinclude an explanaƟon ofLessor's objecƟonstothe changein theAgreedUse.

6.2 Hazardous Substances.
(a) Reportable UsesRequire Consent. The term"Hazardous Substance"as usedinthis Leaseshall meananyproduct, substance,or wastewhose presence,use, manufacture,disposal, transportaƟon,orrelease, eitherby itselfor incombi naƟonwith othermaterials expectedtobe onthe Premises,iseither: (i) potenƟallyinjurious tothe publichealth,safety orwelfare, theenvironment orthePremises, (ii)regulated ormonitoredby anygovernmental authority,or(iii) abasis for potenƟal liabilityof Lessortoany governmentalagency orthird partyunderany applicablestatute orcommonlaw theory. HazardousSubstancesshall include,but notbe limitedto, hydrocarbons,petroleum,gasoline, and/orcrude oilor anyproducts,byproducts or fracƟons thereof. Lessee shallnot engageinany acƟvityin oron thePremises which consƟtutes aReportableUse ofHazardous Substanceswithout theexpressprior wr iƩenconsent ofLessorand Ɵmelycompliance (atLessee's expense)with allApplicable Requirements. "Reportable Use"shall mean(i) the installaƟonor useof anyaboveor belowground storagetank,(ii) the generaƟon, possession,storage, use, transportaƟon, ordisposalof aHazardous Substancethat requiresapermit from,or withrespectto whicha report, noƟce, registraƟon or businessplan isrequired tobe ﬁled with,any governmentalauthority, and/or(iii)the presenceat thePremisesof aHazardous Substancewithrespect towhich any ApplicableRequirements requiresthat a noƟcebe givento personsentering oroccupyingthe Premisesor neighboring properƟes. Notwithstandingthe foregoing, Lesseemay useany ordinaryandcustomary materialsreasonably requiredto beusedin thenormal courseofthe AgreedUse suchasordinary oﬃcesupplies (copier toner,liquid paper,glue, etc.)andcommon householdcleaning materials,so longassuch useis incompliancewith allApplicable Requirements,isnot aReportable Use,and doesnot exposethePremises orneighboring propertyto anymeaningfulrisk of contaminaƟon ordamageor exposeLessor toanyliability therefor. In addiƟon,Lessor maycondiƟon itsconsentto anyReportable Useupon receivingsuch addiƟonal assurancesas Lessorreasonablydeems necessaryto protectitself,the public,the Premisesand/or theenvironmentagainst damage, contaminaƟon, injuryand/or liability,including,but notlimited to,the installaƟon (andremoval onor beforeLease expiraƟonor terminaƟon)of protecƟve modiﬁcaƟons (such asconcrete encasements)and/orincreasing theSecurity Deposit. (b) Dutyto InformLessor. IfLessee knows,or hasreasonablecause tobelieve, thata HazardousSubstancehas cometo belocatedin, on,under or aboutthe Premises,other thanaspreviously consentedto byLessor, Lesseeshallimmediately give wriƩen noƟce ofsuch factto Lessor,andprovide Lessorwith a copyof anyreport, noƟce,claimor other documentaƟon whichit hasconcerningthe presenceof suchHazardousSubstance. (c) Lessee RemediaƟon. Lessee shallnotcause orpermit anyHazardous Substancetobe spilledor releasedin,on, under,or aboutthePremises (includingthrough theplumbing orsanitarysewer system)and shallpromptly, atLessee'sexpense, complywith allApplicableRequirements andtake all invesƟgatory and/orremedial acƟonreasonably recommended,whetheror notformally orderedor required,forthe cleanupof any contaminaƟonof, andfor themaintenance, securityand/or monitoringof thePremisesor neighboring properƟes, thatwas causedormaterially contributedto byLessee,or pertainingto orinvolvingany HazardousSubstance broughtonto thePremisesduring theterm ofthis Lease,byor forLessee, oranythird party. (d) Lessee IndemniﬁcaƟon. Lessee shallindemnify,defend andhold Lessor,itsagents, employees,lenders andground lessor,ifany, harmlessfrom and againstany andall lossofrents and/ordamages, liabiliƟes,judgments, claims,expenses,pen alƟes, and aƩorneys' andconsultants'fees arisingout oforinvolving any HazardousSubstance broughtonto thePremisesby orfor Lessee,or anythirdparty (provided,however, thatLesseeshall haveno liabilityunderthis Leasewith respectto underground migraƟon ofanyHazardous Substanceunder thePremises fromareasoutside ofthe Projectnotcaused orcontributed tobyLessee). Lessee's obligaƟonsshall include,but notbelimited to,the eﬀectsof anycontaminaƟonor injuryto person,propertyor theenvironment createdor suﬀered byLessee, and thecost of invesƟgaƟon, removal, remediaƟon, restoraƟon and/orabatement, andshall survivethe expiraƟon or terminaƟon ofthisLease. No terminaƟon, cancellaƟonor releaseagreement enteredintoby Lessorand Lesseeshall releaseLesseefrom itsob ligaƟons underthisLease withrespect toHazardousSubstances, unless speciﬁcally soagreed byLessorin wriƟngat theƟme ofsuchagreement. (e) Lessor IndemniﬁcaƟon. Except asotherwise providedin paragraph8.7,Lessor andits successorsandassigns shallindemnify, defend,reimburseand holdLessee, itsemployees andlenders,harmless fromand againstany andallenvironmental damages,including thecostof remediaƟon,which resultfrom HazardousSubstances whichexisted onthePremises priorto Lessee'soccupancy orwhichare causedby thegrossnegligence orwillful misconductofLessor, its agentsor employees. Lessor's obligaƟons,as andwhen requiredby theApplicableRequirements, shallinclude, butnotbe limitedto, thecostof invesƟgaƟon, removal, remediaƟon, restoraƟon and/or abatement,andshall survivethe expiraƟonor terminaƟonofthis Lease. (f) InvesƟgaƟons and RemediaƟons. Lessorshall retaintheresponsibility andpay forany invesƟgaƟons or remediaƟon measuresrequired by governmental enƟƟes having jurisdicƟon withrespectto theexistence ofHazardous Substancesonthe Premisesprior toLessee'soccupancy, unlesssuch remediaƟon measureis requiredas aresultof Lessee'suse (including "AlteraƟons", as deﬁnedin paragraph7.3(a) below)ofthe Premises,in whicheventLessee shallbe responsiblefor suchpayment. Lesseeshall cooperatefully inany such acƟviƟesat therequest ofLessor,including allowingLessor andLessor'sagents tohave reasonableaccess tothe Premisesatreasonable Ɵmesin orderto carryoutLessor's invesƟgaƟveand remedialresponsibiliƟes. (g) Lessor T erminaƟon OpƟon. If aHazardousSubstance CondiƟon(see Paragraph9.1(e))occurs duringthe termofthis Lease,unless Lesseeis legally responsibletherefor (inwhich caseLesseeshall makethe invesƟgaƟonand remediaƟonthereofrequired bythe ApplicableRequirementsand thisLease shall conƟnue infull forceand eﬀect,butsubject toLessor's rightsunder Paragraph6.2(d)and Paragraph13), Lessormay,at Lessor's opƟon, either(i) invesƟgate andremediate such HazardousSubstance CondiƟon,if required,assoon asreasonably possibleat Lessor'sexpense,in whichevent thisLeaseshall conƟnuein fullforceand eﬀect,or (ii) if
the esƟmated costto remediatesuch condiƟon exceeds12 Ɵmesthe thenmonthlyBase Rentor $100,000,whicheveris greater,give wriƩen noƟceto Lessee,within 30days aŌerreceipt byLessorof knowledgeof theoccurrence ofsuchHazardous Substance CondiƟon, ofLessor'sdesire toterminate thisLeaseas ofthe date60 daysfollowing thedate ofsuch noƟce. In theevent Lessorelectsto givea terminaƟon noƟce, Lessee may,within 10days thereaŌer ,give wriƩen noƟce to Lessorof Lessee'scommitment topay theamountby whichthe costof the remediaƟonof suchHazardous SubstanceCondiƟonexceeds anamount equalto12 Ɵmesthe then monthlyBase Rentor $100,000,whicheveris greater. Lesseeshall provideLessorwith saidfunds or saƟsfactoryassurance thereofwithin 30daysfollowing such commitment. Insuch event,thisLease shall conƟnue infull forceand eﬀect, andLessor shallproceedto makesuch remediaƟonassoon asreasonably possible aŌer therequired fundsare available. If Lesseedoes notgive suchnoƟceand providethe requiredfundsor assurancethereof withinthe Ɵme provided,this Leaseshall 10 terminateas ofthe date speciﬁedin Lessor'snoƟce of terminaƟon.

6.3 Lessee's Compliancewith ApplicableRequirements. Exceptas otherwiseprovided inthisLease, Lesseeshall, atLessee'ssole expense,fully, diligentlyand ina Ɵmelymanner, materiallycomplywith allApplicable Requirements,the requirementsofany applicable ﬁre insuranceunderwriteror raƟngbureau, andthe recommendaƟonsof Lessor'sengineers and/orconsultantswhich relatein anymanner tothePremises, withoutregard towhethersaid ApplicableRequirements are nowin eﬀector becomeeﬀecƟve aŌer theStart Date. Lesseeshall,within 10days aŌerreceiptof Lessor's wriƩen request,provideLessor withcopies ofall permits andother documents,and other informaƟonevidencing Lessee'scompliance withany ApplicableRequirements speciﬁed byLessor, andshallimmediately upon receipt, noƟfy Lessorin wriƟng(withcopies ofany documentsinvolved) ofanythreatened oractual claim, noƟce, citaƟon, warning,complaint orreportpertaining to orinvolving thefailure ofLesseeor thePremises tocomply withanyApplicable Requirements. Likewise,Lesseeshall immediatelygive wriƩen noƟceto Lessorof: (i) anywater damageto thePremisesand anysuspected seepage,pooling, dampnessorother condiƟonconducive tothe producƟon ofmold; or(ii)any musƟnessor otherodors thatmight indicatethepresence ofmold inthe Premises.

6.4 InspecƟon; Compliance. Lessorand Lessor's"Lender"(as deﬁnedin Paragraph30)and consultantsauthorized byLessorshall havethe rightto enterinto Premisesat any Ɵme, inthecase ofan emergency,and otherwiseatreasonable Ɵmes, aŌer reasonable noƟce,for thepurpose ofinspecƟngand/or tesƟngthe condiƟonof thePremises and/orforverifying complianceby Lesseewith thisLease. Thecost ofanysuch inspecƟonsshall bepaidby Lessor,unless a violaƟon of ApplicableRequirements, ora HazardousSubstance CondiƟon (seeParagraph 9.1(e))is foundtoexist orbe imminent,orthe inspecƟonis requestedorordered bya governmentalauthority. In suchcase,Lessee shallupon requestreimburse Lessorforthe costof such inspecƟon,so longas suchinspecƟonis reasonablyrelated to the violaƟon or contaminaƟon. In addiƟon, Lesseeshall providecopies ofallrelevant materialsafety datasheets( MSDS) toLessor within10days ofthe receiptof wriƩenrequest therefor. Lesseeacknowledgesthat anyfailure onits parttoallow such inspecƟons ortesƟngwill exposeLessor torisksand potenƟallycause Lessor toincur costsnot contemplatedbythis Lease,the extentof whichwillbe extremely diﬃcult toascertain. Accordingly,should theLesseefail toallow such inspecƟons and/or tesƟng ina Ɵmelyfashionthe BaseRent shallbe automaƟcallyincreased,without anyrequirement for noƟceto Lessee,by anamountequal to10% ofthe then exisƟng BaseRent or$100,whichever isgreater forthe remaindertothe Lease. The ParƟesagree thatsuch increaseinBase Rentrepresents fairand reasonable compensaƟonfor theaddiƟonal risk/coststhatLessor willincur byreason ofLessee'sfailure toallow such inspecƟonand/or tesƟng. Suchincreasein BaseRent shall inno event consƟtute awaiverof Lessee'sDefault orBreach withrespectto suchfailure norpreventthe exerciseof anyofthe otherrights andremedies granted hereunder.

7. Maintenance;Repairs; UƟlity InstallaƟons;Trade Fixturesand AlteraƟons.

7.1 Lessee's ObligaƟons. NotwithstandingLessor's obligaƟontokeep thePremises ingood condiƟon andrepair, Lesseeshallbe responsiblefor thecost of painƟng,repairing orreplacing wallcoverings,and torepair orreplace anyimprovementswithin thePremises.

7.2 Lessor's ObligaƟons. Subjectto theprovisionsof Paragraphs2.2 (CondiƟon),2.3(Compliance), 4.2 (OperaƟng Expenses),6(Use), 7.1(Lessee's ObligaƟons),9 (Damageor DestrucƟon)and14 (CondemnaƟon), Lessor, subjectto reimbursementpursuantto Paragraph4.2, shallkeepin goodorder, condiƟonand repairthe Premises,the foundaƟons,exteriorwalls, structural condiƟon ofinterior bearingwalls,exterior roof, ﬁre sprinklersystem, ﬁre alarmand/or smoke detecƟonsystems, ﬁrehydrants, andtheCommon Areas.

7.3 UƟlity InstallaƟons; Trade Fixtures;AlteraƟons.
(a) DeﬁniƟons. The term"UƟlity InstallaƟons" refersto allﬂoor andwindowcoverings, airlines, vacuumlines,power panels,electrical distribuƟon, securityand ﬁre protecƟon systems, communicaƟoncabling, lighƟng ﬁxtures, HVACequipment, andplumbingin oron thePremises. Theterm " TradeFixtures"shall meanLessee's machineryand equipmentthatcan beremoved withoutdoing materialdamageto thePremises. Theterm " AlteraƟons"shall meanany modiﬁcaƟon ofthe improvements,other than UƟlity InstallaƟons orTrade Fixtures,whether by addiƟonor deleƟon. "LesseeOwned AlteraƟons and/or UƟlity InstallaƟons"are deﬁnedas AlteraƟonsand/or UƟlity InstallaƟonsmade byLessee thatare notyetowned byLessor pursuanttoParagraph 7.4(a). (b) Consent. Lesseeshall notmakeany AlteraƟonsor UƟlity InstallaƟonsto thePremises withoutLessor's priorwriƩenconsent. Lessee may,however, makenon-structural AlteraƟonsor UƟlity InstallaƟonsto theinterior ofthe Premises(excludingthe roof)without suchconsentbut upon noƟce toLessor,as longas theyare notvisible fromtheoutside, donot involvepuncturing, relocaƟngorremoving theroof, ceilings, ﬂoorsor anyexisƟng walls,willnot aﬀectthe electrical, plumbing,HVAC, and/orlife safetysystems,do nottrigger therequirement for addiƟonal modiﬁcaƟons and/orimprovements tothePremises resulƟngfrom ApplicableRequirements, suchas compliancewithTitle 24,and the cumulaƟve costthereofduring thisLease asextendeddoes notexceed $2000. Notwithstanding theforegoing, Lesseeshall notmakeor permitany roof penetraƟons and/orinstallanything onthe roofwithoutthe prior wriƩen approvalofLessor. Lessor may,as a precondiƟonto granƟngsuch approval,requireLessee to uƟlize acontractor chosenand/orapproved byLessor. Any AlteraƟons or UƟlity InstallaƟons thatLessee shalldesire tomake andwhichrequire theconsent ofthe Lessorshallbe presentedto Lessorinwri Ʃen formwith detailedplans. Consentshall bedeemed condiƟonedupon Lessee's: (i)acquiringall applicablegovernmental permits,(ii) furnishingLessorwith copiesof boththepermits andthe plansand speciﬁcaƟons priorto commencementof thework,and (iii)compliance withall condiƟonsofsaid permitsand otherApplicableRequirements ina promptand expediƟous manner.

Any AlteraƟons or UƟlity InstallaƟons shallbe performedin aworkmanlike mannerwithgood andsu ﬃcient materials. Lessee shallpromptly uponcompleƟonfurnish Lessorwith as-builtplans and speciﬁcaƟons. Forwork whichcosts anamountin excessof onemonth'sBase Rent,Lessor may condiƟonits consentupon Lessee providinga lienand compleƟonbondin anamount equalto 150%ofthe esƟmatedcost ofsuchAlter aƟon or UƟlity InstallaƟon and/orupon Lessee's posƟng an addiƟonalSecurity Depositwith Lessor.
(c) Liens;Bonds . Lessee shallpay,when due,all claimsfor laborormaterials furnishedor allegedtohave beenfurnished toorfor Lesseeat orfor useon thePremises, whichclaims areormay besecured byany mechanic'sormaterialmen's lienagainst thePremisesor anyinterest therein. Lessee shallgive Lessornot lessthan 10days noƟcepriorto thecommencement ofany workin,on orabout thePremises,and Lessorshall havetheright topost noƟcesof non-responsibility. If Lesseeshall contestthe validityofany suchlien, claimor demand,thenLessee shall,at itssoleexpense defendand protectitself,Lessor andthe Premisesagainst the sameand shallpay and saƟsfyany suchadverse judgmentthat mayberendered thereonbefore theenforcementthereof. If Lessorshallrequire, Lesseeshall furnish asurety bondin anamountequal to150% ofthe amountofsuch contestedlien, claimordemand, indemnifyingLessor againstliabilityfor thesame. If Lessorelects to parƟcipate inany such acƟon,Lessee shallpay Lessor'saƩorneys' feesandcosts.

7.4 Ownership; Removal;Surrender; andRestoraƟon.
(a) Ownership. Subject toLessor'sright torequire removalor electownershipas hereinaŌerprovided, allAlteraƟonsand UƟlity InstallaƟons madeby Lesseeshall bethe propertyofLessee, butconsidered apart ofthePremises. Lessor may,atany Ɵme,elect inwriƟngto bethe ownerof allorany speciﬁedpart of
theLessee Owned AlteraƟons and UƟlity InstallaƟons. Unless otherwiseinstructed perparagraph7.4(b) hereof,all LesseeOwned AlteraƟons and UƟlity InstallaƟons shall,at the expiraƟon or terminaƟonof thisLease, becomethe propertyofLessor andbe surrenderedbyLessee withthe Premises. (b) Removal. Bydelivery toLesseeof wriƩen noƟce fromLessornot earlierthan 90and notlaterthan 30days priortothe endof thetermof thisLease, Lessormay requirethat anyorall LesseeOwned AlteraƟonsor UƟlity InstallaƟonsbe removedby theexpiraƟonor terminaƟonof thisLease. Lessormay requirethe removalat any Ɵme ofallor anypart ofany LesseeOwned AlteraƟons or UƟlity InstallaƟons madewithout therequired consent. (c) Surrender; RestoraƟon. Lessee shallsurrenderthe Premisesby the ExpiraƟon Dateorany earlier terminaƟon date,withall ofthe improvements, partsand surfacesthereof cleanandfree ofdebris, andin good operaƟngorder, condiƟonand stateofrepair, ordinarywear andtearexcepted. "Ordinary wearand 11 tear"shall notinclude anydamageor deterioraƟonthat wouldhave beenpreventedby goodmaintenance pracƟce. Notwithstanding theforegoing andtheprovisions ofParagraph 7.1(a),if theLesseeoccupies thePremises for12 monthsorless, thenLessee shallsurrenderthe Premisesin thesame condiƟon asdelivered toLessee onthe StartDate withNOallowance forordinary wearand tear. Lessee shallrepair anydamageoccasioned bythe installaƟon,maintenanceor removalof Trade Fixtures,Lessee owned AlteraƟons and/or UƟlity InstallaƟons, furnishings,and equipmentas wellasthe removalof anystoragetank installedby orforLessee. Lessee shallalso removefrom thePremisesany andall HazardousSubstances broughtontothe Premisesby orforLessee, orany thirdparty(except HazardousSubstances whichwere depositedvia underground migraƟonfrom areasoutside ofthe Project)tothe levelspec iﬁed inApplicableRequirements. Trade Fixturesshallremain the propertyof Lesseeand shallberemoved byLessee. Any personalpropertyof Lesseenot removedonor beforethe ExpiraƟonDateor anyearlier terminaƟondate shallbe deemedto havebeenabandoned byLessee andmay bedisposedof orretained byLessoras Lessormay desire. The failureby Lesseeto Ɵmelyvacatethe Premisespursuant tothis Paragraph7.4(c)without theexpress wriƩenconsent ofLessorshall consƟtutea holdoverunderthe provisionsof Paragraph26below.

8. Insurance;Indemnity.

8.1 Insurance Premiums. Thecost ofthepremiums forthe insurancepoliciesmaintained byLessor pursuanttoparagraph 8are includedas OperaƟng Expenses (see paragraph 4.2 (a)(iv)). Said costs shall include increases in the premiumsresulƟngfrom addiƟonalcoveragerelated torequirements oftheholder ofa mortgageor deedof trustcoveringthe Premises,Building and/orProject, increased valuaƟonof thePremises, Buildingand/orProject, and/ora generalpremiumrate increase. Saidcosts shallnot,however, includeany premiumincreases resulƟngfromthe natureof theoccupancyof anyother tenantofthe Building. Inno event, however,shall Lesseebe responsibleforany porƟonof thepremium costaƩributableto liabilityinsurance coverageinexcess of$2,000,000 procuredunderParagraph

8.2(b).

8.2 Liability Insurance.
(a) Carried byLessee. Lesseeshall obtainand keepin forceaCommercial GeneralLiability policyofinsurance protecƟngLessee andLessoras an addiƟonalinsured againstclaims forbodilyinjury, personalinjury andproperty damagebasedupon orarising outofthe ownership,use, occupancyormaintenance of thePremises andall areasappurtenantthereto. Such insuranceshall beonan occurrencebasis providingsinglelimit coveragein anamountnot lessthan $1,000,000 peroccurrence withan annualaggregateof notless than$2,000,000. Lesseeshall addLessor asan addiƟonal insuredby meansofan endorsementat leastas broad asthe InsuranceService OrganizaƟon's "AddiƟonalInsured-Managers orLessors ofPremises" Endorsement. The policyshall notcontainany intra-insuredexclusions asbetween insuredpersons or organizaƟons,but shallinclude coveragefor liabilityassumedunder thisLease asan"insured contract"for theperformanceof Lessee's indemnity obligaƟons underthis Lease. The limitsof saidinsurance shallnot,however, limitthe liabilityofLessee norrelieve Lesseeofany obligaƟonhereunder.

Lesseeshall providean endorsementonits liabilitypolicy(ies) whichprovides thatitsinsurance shallbe primarytoand notcontributory withanysimilar insurance carriedby Lessor,whose insuranceshallbe consideredexcess insuranceonly. (b) Carriedby Lessor. Lessorshallmaintain liabilityinsurance asdescribedin Paragraph8.2(a), in addiƟon to,andnot inlieu of,theinsurance requiredto bemaintained byLessee. Lesseeshall notbe namedas an addiƟonalinsured therein.

8.3 Property Insurance- Building,Improvements andRentalValue. (a) Building andImprovements. Lessorshall obtainand keepin forceapolicy orpolicies ofinsurancein thename ofLessor,with losspayable toLessor, anyground-lessor, andto anyLenderinsuring lossor damageto theBuildingand/or Project. Theamountof suchinsurance shallbeequal tothe fullinsurable replacementcost ofthe Buildingand/orProject, asthe sameshall existfrom Ɵme to Ɵme, ortheamount requiredby anyLender,but inno eventmore thanthe commerciallyreasonable andavailable insurablevaluethereof. Lessee Owned AlteraƟons and UƟlity InstallaƟons, TradeFixtures, andLessee'spersonal propertyshall beinsured byLessee notbyLessor. If thecoverage isavailableand commerciallyappropriate, suchpolicyor policiesshall insureagainstall risksof directphysical loss ordamage (exceptthe perilsof ﬂood and/orearthquake unlessrequired byaLender), includingcoverage fordebrisremoval andthe enforcementofany Applicable Requirementsrequiring theupgrading, demoliƟon, reconstrucƟonor replacementof anyporƟon ofthePremises asthe resultofa coveredloss. Saidpolicy orpolicies shallalso containan agreed valuaƟonprovision inlieu ofany coinsuranceclause,waiver ofsubro gaƟon, and inﬂaƟonguard protecƟoncausing anincreasein the annualproperty insurancecoverage amountbya factorof notless thantheadjusted U.S.Department ofLaborConsumer PriceIndex forAllUrban Consumersfor the citynearest towhere thePremisesare located. Ifsuch insurancecoveragehas a deducƟble clause,the deducƟble amountshall notexceed$5,000 peroccurrence. (b) RentalValue. Lessor shallalsoobtain andkeep inforcea policyor policiesin thenameof Lessorwith losspayableto Lessorand anyLender,insuring theloss ofthe fullRentfor oneyear withan extendedperiodof indemnityfor an addiƟonal180 days("Rental Valueinsurance"). Saidinsurance shallcontain an agreed valuaƟon provisionin lieuofany coinsuranceclause, andthe amountofcoverage shallbe adjustedannuallyto reﬂectthe projectedRentotherwise payableby Lessee,for thenext 12monthperiod.
(c) AdjacentPremises. Lessee shallpayfor anyincrease inthe premiumsforthe propertyinsurance oftheBuilding andfor theCommonAreas orother buildingsin theProject ifsaidincrease iscaused byLessee's acts,omissions,use oroccupancy ofthePremises. (d) Lessee'sImprovements. Since Lessoristhe InsuringParty, Lessorshallnot berequired toinsure LesseeOwned AlteraƟons and UƟlity InstallaƟons unlessthe itemin quesƟonhasbecome theproperty ofLessor undertheterms ofthis Lease.

8.4 Lessee's Property;Business InterrupƟonInsurance; Worker'sCompensaƟon Insurance. (a) Property Damage. Lesseeshallobtain andmaintain insurancecoverage onallof Lessee'spersonal property,TradeFixtures, andLessee Owned AlteraƟonsand UƟlity InstallaƟons. Suchinsurance shallbe fullreplacement costcoveragewith a deducƟble ofnotto exceed$1,000 peroccurrence. Theproceeds fromany suchinsurance shallbeused byLessee forthe replacementofpersonal property,Trade FixturesandLessee Owned AlteraƟons and UƟlity InstallaƟons. (b) Business InterrupƟon. Lessee shallobtainand maintainloss ofincomeand extraexpense insurancein amountsaswill reimburseLessee fordirector indirectloss ofearnings aƩributabletoall perilscommonly insuredagainst byprudentlessees inthe businessofLessee or aƩributable to prevenƟonof accessto the Premisesas aresult ofsuchperils.
(c) Worker's CompensaƟon Insurance. Lesseeshallobtain andmaintain Worker's CompensaƟon Insuranceinsuch amountas mayberequired by ApplicableRequirements. Such policyshallinclude a'Waiver of SubrogaƟon' endorsement. Lessee shallprovide Lessorwitha copyof suchendorsementalong with the cerƟﬁcate ofinsurance orcopyof thepolicy requiredby paragraph8.5. (d) No RepresentaƟon ofAdequate Coverage. Lessor makesno representaƟonthatthe limitsor formsof coverageofinsurance speciﬁedherein are adequateto coverLessee's property,business operaƟons or obligaƟons underthis Lease.

8.5 Insurance Policies. Insurancerequired hereinshallbe bycompanies maintainingduringthe policyterm a"GeneralPolicyholders RaƟng"of atleast A-,VII, asset forthin themostcurrent issueof "Best'sInsurance Guide",orsuch other raƟng asmaybe requiredby aLender. Lesseeshall notdo orpermitto bedone anythingwhich invalidatesthe requiredinsurancepolicies. Lessee shall,prior totheStart Date,deliver toLessor cerƟﬁed copiesof policiesofsuch insuranceor cerƟﬁcateswith copiesof therequiredendorsements evidencingthe existenceand amountsofthe requiredinsurance. Nosuch policyshall becancelableor subject to modiﬁcaƟon except aŌer 30daysprior wriƩen noƟce toLessor. Lesseeshall, atleast 10daysprior tothe expiraƟonofsuch policies,furnish Lessorwith evidenceof renewalsor "insurancebinders" evidencingrenewalthereof, orLessor mayincrease hisliabilityinsurance coverageand chargethecost thereofto Lessee,which amountshall bepayable byLesseeto Lessorupon demand. Suchpoliciesshall befor atermof atleast oneyear,or thelength ofthe remainingtermof thisLease, whicheveris less. IfeitherParty shallfail toprocure andmaintainthe insurancerequired tobecarried byit, theotherParty may,but shallnot berequiredto, procure 12 andmaintain thesame.

8.6 Waiver ofSubrogaƟon. Without aﬀecƟnganyother rightsor remedies,Lesseeand Lessoreach herebyreleaseand relievethe other,and waivetheir enƟre rightto recoverdamages againsttheother, forloss ofor damagetoits propertyarising outofor incidentto theperilsrequired tobe insuredagainst herein. The eﬀectof suchreleases andwaiversis notlimited bythe amountofinsurance carriedor required,orby any deducƟbles applicablehereto. The ParƟes agreeto have their respecƟve propertydamage insurancecarrierswaive anyright to subrogaƟon thatsuchcompanies mayhave againstLessoror Lessee,as thecasemay be,so longas theinsurance isnotinvalidated thereby.

8.7 Indemnity. Except forLessor's grossnegligenceor willfulmisconduct, Lesseeshallindemnify, protect,defend andholdharmless thePremises, Lessorand itsagents, Lessor'smaster orgroundlessor, partnersand Lenders,from andagainstany andall claims,lossof rentsand/or damages,liens,judgments, penalƟes, aƩorneys'and consultants'fees, expensesand/or liabiliƟes arisingout of,involving, orinco nnecƟon with,a Breachofthe Leaseby Lesseeand/orthe useand/or occupancyof thePremises and/orProjectby Lesseeand/or byLessee's employees,contractorsor invitees. Ifany acƟon orproceeding isbroughtagainst Lessorby reasonof anyof theforegoing maƩers, Lesseeshall upon noƟce defendthesame atLessee's expensebycounsel reasonably saƟsfactory toLessorand Lessorshall cooperatewith Lesseein suchdefense. Lessorneed nothave ﬁrstpaidany suchclaim inorderto bedefended or indemniﬁed.

8.8 ExempƟon ofLessor andits AgentsfromLiability . Notwithstanding thenegligenceor breachof thisLeaseby Lessoror itsagents, neitherLessornor its agentsshall beliable underanycircumstances for:(i) injuryor damagetothe personor goods,wares,merchandise orother propertyofLessee, Lessee'semployees, contractors,invitees, customers,or anyotherperson inor aboutthe Premises,whethersuch damageor injuryiscaused byor resultsfrom ﬁre, steam,electricity, gas, wateror rain,indoor airquality,the presenceof moldor fromthebreakage, leakage, obstrucƟon orotherdefects ofpipes, ﬁresprinklers,wires, appliances,plumbing, HVACor lighƟng ﬁxtures, orfromany othercause, whetherthe saidinjuryor damageresults from condiƟonsarising uponthe Premisesorupon other porƟons ofthe Building,or fromother sourcesorplaces, (ii)any damagesarising fromanyact orneglect ofanyother tenantof Lessororfrom thefailure ofLessor oritsagents to enforcethe provisionsof anyotherlease inthe Project,or (iii)injuryto Lessee'sbusiness orforany lossof incomeor proﬁt therefrom. Instead,it isintendedthat Lessee'ssole recoursein theeventof suchdamages orinjury beto ﬁle aclaim ontheinsurance policy(ies)that Lesseeisrequired tomaintain pursuantto the
provisionsof paragraph8.

8.9 Failure toProvide Insurance. Lesseeacknowledgesthat anyfailure onitspart toobtain ormaintainthe insurancerequired hereinwill exposeLessorto risksand potenƟallycause Lessortoincur costsnot contemplatedby thisLease,the extentof whichwillbe extremely diﬃcult toascertain. Accordingly,for anymonth or porƟon thereofthat Lesseedoesnot maintainthe requiredinsurance and/ordoesnot provideLessor withtherequired bindersor cerƟﬁcatesevidencingthe existenceof therequired insurance,theBase Rentshall be automaƟcally increased,withoutany requirementfor noƟcetoLessee, byan amountequalto 10%of the then exisƟng BaseRent or$100,whichever isgreater. The parƟesagreethat suchincrease inBaseRent representsfair andreasonable compensaƟon forthe addiƟonalrisk/costs thatLessor willincurby reasonof Lessee'sfailure tomaintainthe requiredinsurance. Suchincrease inBase Rentshallin noevent consƟtutea waiverof Lessee'sDefault orBreachwith respectto thefailure tomaintainsuch insurance,prevent theexerciseof anyof theotherrights andremedies granted hereunder,nor relieveLessee ofits obligaƟon tomaintain theinsurance speciﬁedinthis Lease.

9. Damageor DestrucƟon.

9.1 DeﬁniƟons.
(a) " Premises ParƟalDamage" shallmeandamage or destrucƟon tothe improvementsonthe Premises,other thanLesseeOwned AlteraƟonsand UƟlity InstallaƟons,which canreasonably berepairedin 3months orless fromthedate ofthe damageor destrucƟon, andthe costthereofdoes notexceed asum equalto6 month'sBase Rent. Lessorshall noƟfy Lesseein wriƟngwithin 30daysfrom thedate ofthedamage or destrucƟon astowhether ornot thedamage is ParƟalor Total. (b) " PremisesTotal DestrucƟon"shall meandamageor destrucƟonto theimprovementson thePremises, otherthan LesseeOwned AlteraƟons and UƟlity InstallaƟons andTrade Fixtures,whichcannot reasonablybe repairedin 3monthsor lessfrom thedateof thedamage or destrucƟonand/or thecost thereof exceedsa sumequal to6month's BaseRent. Lessor shall noƟfyLessee inwriƟng within30days fromthe dateofthe damageor destrucƟonas towhetheror notthe damageis ParƟalor Total.
(c) " InsuredLoss" shallmean damageor destrucƟon toimprovements onthe Premises,otherthan LesseeOwned AlteraƟonsand UƟlity InstallaƟons and TradeFixtures, whichwas causedbyan eventrequired tobe coveredbythe insurancedescribed inParagraph8.3(a), irrespecƟveof anydeducƟbleamounts or coveragelimits involved.
(d) " ReplacementCost" shallmean thecostto repairor rebuildtheimprovements ownedby Lessorat the Ɵmeof theoccurrence totheir condiƟon exisƟngimmediately priorthereto, includingdemoliƟon,debris removaland upgradingrequired bythe operaƟon ofApplicable Requirements,andwithout deducƟon for depreciaƟon.
(e) " Hazardous SubstanceCondiƟon"shall meanthe occurrenceor discoveryofa condiƟoninvolving thepresenceof, ora contaminaƟonby,a HazardousSubstance, in,on, orunderthe Premiseswhich requires restoraƟon.

9.2 ParƟal Damage- InsuredLoss. Ifa Premises ParƟal Damagethatis anInsured Lossoccurs,then Lessorshall, atLessor's expense,repairsuch damage(but notLessee's TradeFixtures orLesseeOwned AlteraƟonsand UƟlity InstallaƟons) assoonas reasonablypossible andthisLease shall conƟnue infullforce and eﬀect; provided,however, thatLessee shall,atLessor's elecƟon,make therepair ofanydamage ordes trucƟon thetotalcost torepair ofwhichis $5,000or less,and, insuch event,Lessor shallmake anyapplicableinsurance proceedsavailable toLessee onareasonable basisfor thatpurpose. Notwithstandingthe foregoing,ifthe required insurancewas notin forceorthe insuranceproceeds arenot suﬃcientto eﬀect suchrepair, theInsuringParty shallpromptly contributetheshortage inproceeds as andwhen requiredto completesaidrepairs. In theevent, however,suchshortage wasdue tothefact that,by reasonofthe uniquenature ofthe improvements,full replacementcost insurancecoverage wasnotcommercially reasonableand available,Lessor shallhaveno obligaƟonto payforthe shortagein insuranceproceedsor tofully restorethe uniqueaspectsof thePremises unlessLessee providesLessorwith thefunds tocoversame, oradequate assurancethereof,within 10days followingreceipt of wriƩen noƟce ofsuch shortageand requesttherefor. IfLessor receivessaid fundsoradequate assurancethereof withinsaid10 dayperiod, the partyresponsible formaking therepairsshall completethem assoon asreasonablypossible andthis Leaseshallremain infull forceand eﬀect. If suchfunds or assuranceare notreceived, Lessormaynevertheless electby wriƩen noƟce toLesseewithin 10days thereaŌerto: (i)make such restoraƟonand repairas is commerciallyreasonable withLessor payinganyshortage inproceeds, inwhich casethisLease shallremain infullforce and eﬀect, or(ii)have thisLease terminate30 days thereaŌer. Lessee shallnotbe enƟtledto reimbursementof anyfundscontributed byLessee torepairany suchdamage or destrucƟon. Premises ParƟal Damage dueto ﬂoodor earthquakeshallbe subjectto Paragraph9.3, notwithstandingthatthere maybe someinsurancecoverage, butthe netproceedsof anysuch insurance shallbe madeavailable fortherepairs ifmade byeither Party.

9.3 ParƟal Damage- UninsuredLoss. Ifa Premises ParƟal Damagethatis notan InsuredLossoccurs, unlesscaused bya negligentorwillful actof Lessee(in whichevent Lesseeshall maketherepairs atLessee's expense),Lessor mayeither: (i)repair suchdamageas soonas reasonablypossibleat Lessor'sexpense (subject toreimbursement pursuantto Paragraph4.2),in whichevent thisLease shall conƟnuein fullforce andeﬀect,or (ii)terminate thisLeaseby giving wriƩen noƟce to Lesseewithin 30days aŌerreceiptby Lessorof knowledgeof theoccurrenceof suchdamage. Sucht erminaƟon shallbe eﬀecƟve60days followingthe dateof such noƟce. Inthe eventLessorelects toterminate thisLease, Lesseeshallhave theright within10days aŌerreceipt ofthe terminaƟon noƟce to givewriƩen noƟce to Lessorof Lessee'scommitment topayfor therepair ofsuch damagewithoutreimbursement fromLessor. Lesseeshall provideLessor withsaidfunds or saƟsfactory 13 assurancethereof within30 days aŌermaking suchcommitment. In sucheventthis Leaseshall conƟnueinfull forceand eﬀect,andLessor shallproceed tomake suchrepairs assoon asreasonablypossible aŌerthe requiredfunds areavailable. IfLessee doesnotmake therequired commitment,thisLease shallterminate asof thedate speciﬁedin theterminaƟon noƟce.

9.4 Total DestrucƟon. Notwithstandingany otherprovisionhereof, ifa PremisesTotal DestrucƟon occurs,this Leaseshallterminate 60days followingsuch DestrucƟon. Ifthe damageor destrucƟon wascaused bythe grossnegligenceor willfulmisconduct ofLessee,Lessor shallhave therightto recoverLessor's damages fromLessee, exceptas providedinParagraph 8.6.

9.5 Damage NearEnd ofTerm. Ifat any Ɵme duringthelast 6months ofthisLease thereis damagefor whichthecost torepair exceedsonemonth's Base Rent,whether ornot anInsuredLoss, Lessormay terminatethis Lease eﬀecƟve60 daysfollowing thedateof occurrenceof suchdamageby givinga wriƩen terminaƟon noƟce toLessee within30days aŌerthe dateof occurrenceofsuch damage. Notwithstandingtheforegoing, ifLessee atthat Ɵme hasan exercisable opƟonto extendthis Leaseorto purchasethe Premises,then Lesseemaypreserve thisLease by,(a)exercising such opƟon and(b)providing Lessorwith anyshortage ininsurance proceeds(or adequateassurancethereof) neededto makethe repairsonor beforethe earlierof(i) thedate whichis10 days aŌer Lessee'sreceipt of Lessor's wriƩen noƟce purporƟng toterminatethis Lease,or (ii)the daypriorto thedate uponwhichsuch opƟonexpires. IfLessee dulyexercises such opƟon during suchperiod andprovides Lessorwithfunds (oradequate assurancethereof) tocoverany shortagein insuranceproceeds,Lessor shall,at Lessor'scommercially reasonableexpense, repairsuch damageassoon asreasonably possibleand thisLeaseshall conƟnuein fullforceand eﬀect. IfLesseefails toexercise such opƟon and providesuch fundsor assuranceduringsuch period,then thisLease shallterminateon thedate spe ciﬁedinthe terminaƟon noƟce andLessee's opƟon shallbe exƟnguished.

9.6 Abatement ofRent; Lessee'sRemedies.
(a) Abatement. In theeventof Premises ParƟal Damageor PremisesTotal DestrucƟon ora HazardousSubstance CondiƟon forwhich Lesseeisnot responsibleunder thisLease, theRentpayable byLessee forthe periodrequiredfor therepair, r emediaƟonor restoraƟon ofsuch damageshallbe abatedin proporƟonto thedegree towhichLessee's useof thePremises isimpaired,but notto exceedtheproceeds receivedfrom theRentalValue insurance. Allother obligaƟonsof Lesseehereunder shallbeperformed byLessee, andLessor shallhaveno liabilityfor anysuchdamage, destrucƟon, remediaƟon, repairor restoraƟon exceptas providedherein.
(b) Remedies. IfLessor shallbeobligated torepair orrestorethe Premisesand doesnot commence,ina substanƟaland meaningfulway,such repairor restoraƟonwithin 90days aŌersuch obligaƟon shallaccrue, Lesseemay, atany Ɵme priorto thecommencementof suchrepair or restoraƟon,give wriƩen noƟce to Lessorand toany Lendersofwhich Lesseehas actual noƟce, ofLessee's elecƟon toterminate thisLeaseon adate notlessthan 60days followingthe givingofsuch noƟce. IfLessee givessuch noƟce andsuch repairor restoraƟonisnot commencedwithin 30days thereaŌer ,thisLease shallterminateas ofthe date speciﬁed insaid noƟce. Ifthe repairor restoraƟoniscommenced withinsuch 30days,this Leaseshall conƟnueinfull forceand eﬀect. "Commence" shallmean eitherthe uncondiƟonal authorizaƟon ofthe preparaƟonofthe requiredplans, orthe beginningofthe actualwork onthePremises, whichever ﬁrst occurs.

9.7 TerminaƟon;AdvancePayments. Upon terminaƟonofthis Leasepursuant toParagraph6.2(g) orParagraph 9,anequitable adjustmentshall bemade concerningadvance BaseRent andanyother advancepayments madeby LesseetoLessor. Lessor shall,in addiƟon, returnto Lesseesomuch ofLessee's Security Depositas hasnot been,oris notthen requiredto be,usedby Lessor.

10. Real PropertyTaxes.

10.1 DeﬁniƟons. Asused herein,the term"RealProperty Taxes"shall includeanyform ofassessment; realestate,general, special,ordinary orextraordinary, or rentallevy ortax (otherthaninheritance, personalincome orestate taxes);improvementbond; and/orlicense feeimposedupon orlevied againstanylegal or equitableinterest ofLessor intheProject, Lessor'sright toother incometherefrom,and/or Lessor'sbusiness ofleasing,by anyauthority havingthedirect orindirect powerto taxand wherethefunds aregenerated withreference totheProject address. "RealPropertyTaxes " shallalso includeanytax, fee,levy, assessmentor charge,or anyincrease therein:(i)imposed byreason ofevents occurringduringthe termof thisLease,including butnot limitedto,a changein theownership ofthe Project,(ii) achange intheimprovements thereon,and/or (iii)levied orassessedon machineryor equipmentprovidedby Lessorto Lesseepursuantto thisLease.

10.2 Payment ofTaxes. Exceptas otherwiseprovidedin Paragraph10.3, Lessorshallpay theReal PropertyTaxesapplicable tothe Project,and saidpayments shallbe includedin the calculaƟonof OperaƟngExpenses inaccordance withtheprovisions ofParagraph 4.2.

10.3 AddiƟonal Improvements. OperaƟng Expensesshall notincludeReal PropertyTaxes speciﬁedinthe taxassessor's recordsandwork sheetsas being
causedby addiƟonalimprovements placeduponthe Projectby otherlessees orbyLessor forthe exclusiveenjoymentof suchother lessees. Notwithstanding Paragraph10.2 hereof,Lessee shall,however,pay toLessor atthe Ɵme OperaƟngExpenses arepayable underParagraph4.2, the enƟrety ofanyincrease inReal PropertyTaxes ifassessed solelybyreason of AlteraƟons, TradeFixtures or UƟlity InstallaƟons placedupon thePremisesby Lesseeor atLessee'srequest orby reason ofany alteraƟonsor improvementstothe Premisesmade byLessor subsequenttothe execuƟonof thisLeaseby the ParƟes.

10.4 Joint Assessment. If theBuilding isnotseparately assessed,Real PropertyTaxesallocated tothe Buildingshallbe anequitable proporƟonof theReal PropertyTaxes forall oftheland andimprovements includedwithin thetaxparcel assessed,such p roporƟontobe determinedby Lessorfromthe respecƟve valuaƟonsassigned inthe assessor'sworksheets orsuch other informaƟon asmaybe reasonablyavailable. Lessor'sreasonable determinaƟonthereof, ingoodfaith, shallbe conclusive.

10.5 Personal PropertyTaxes. Lesseeshall paypriorto delinquencyall taxesassessedagainst andlevied uponLesseeOwned AlteraƟonsand UƟlity InstallaƟons,Trade Fixtures,furnishings, equipmentandall personalproperty ofLessee containedinthe Premises. Whenpossible,Lessee shallcause itsLessee Owned AlteraƟons and UƟlity InstallaƟons, TradeFixtures, furnishings,equipment andall otherpersonalproperty tobe assessedandbilled separatelyfrom thereal propertyof Lessor. Ifanyof Lessee'ssaid propertyshall beassessedwith Lessor'sreal property,Lesseeshall payLessor thetaxes aƩributable toLessee's property within10 days aŌer receiptofa wriƩenstatement seƫngforth thetaxesapplicable toLessee's property.

11. UƟliƟes andServices.

11.1 Services ProvidedbyLessor . Lessor,subjecttoreimbursementbyLesseeforLessee'sShareoftheServicesProvidedbyLessor,which shallbeinthesameproportionasLessee'sShareofOperatingExpenses,shallprovide heaƟng,venƟlaƟon,air condiƟoning, reasonable amountsof electricityfor normal lighƟng and oﬃcemachines, waterfor reasonableand normaldrinkingand lavatoryuse in connecƟon with anoﬃce, andreplacementlight bulbsand/or ﬂuorescenttubes andballastsfor standardoverhead ﬁxturesinthecommonareas . Lessor shallalso providejanitorialservices tothe Premisesand CommonAreas 5 Ɵmes perweek,excluding BuildingHolidays , orpursuant tothe aƩached janitorialschedule, ifany. Lessorshall not,however, berequiredto provide janitorialservices tokitchens orstorage areasincludedwithin thePremises.

11.2 Services ExclusivetoLessee . Notwithstanding theprovisionof paragraph11.1, Lesseeshallpay forall water,gas,heat, light,power, telephone, telecommunications,janitorialwithinthePremisesandother uƟliƟes andservicesspecially orexclusively suppliedand/ormetered exclusivelyto the Premisesor toLessee, togetherwithany taxesthereon. If aserviceis deletedby Paragraph1.13and suchservice isnotseparately meteredto thePremises, Lessee shallpay atLessor's opƟon,eitherLessee's Shareor areasonable proporƟontobe determinedby Lessorofall chargesfor suchjointlymetered service.

11.3 Hours ofService. Saidservices and uƟliƟesshall beprovided duringƟmesset forthin Paragraph1.12. UƟliƟesand servicesrequired atother Ɵmes shall 14 besubject toadvance requestandreimbursement byLessee toLessor ofthecost thereof.

11.4 Excess UsagebyLessee. Lessee shallnotmake connecƟonto theuƟliƟesexcept byor throughexisƟngoutlets andshall notinstall orusemachinery or equipmentin orabout thePremisesthat usesexcess water, lighƟng orpower,or suﬀeror permitanyact thatcauses extraburdenupon the uƟliƟes orservices, includingbut notlimited tosecurityand trashservices, overstandard oﬃceusagefor theProject. Lessorshall requireLessee toreimburseLessor forany excess expensesor coststhat mayariseout ofa breachof thissubparagraphby Lessee. Lessormay,in itssole discreƟon,installat Lessee'sexpense supplementalequipment and/orseparate meteringapplicable toLessee'sexcess usageor loading.

11.5 InterrupƟons. Thereshall beno abatementofrent andLessor shallnotbe liablein anyrespectwhatsoever forthe inadequacy,stoppage, interrupƟonor disconƟnuanceof anyuƟlity orservicedue toriot, strike,labor dispute,breakdown,accident, repairor othercausebeyond Lessor'sreasonable controlorin cooperaƟonwith governmentalrequest ordirecƟons.

11.6 Within ﬁŌeendaysof Lessor's wriƩen request,Lesseeagrees todeliver toLessorsuch infor maƟon,documents and/orauthorizaƟonas Lessorneeds in orderfor Lessorto complywithnew or exisƟng ApplicableRequirements relaƟngtocommercial buildingenergy usage, raƟngs, and/orthe reporƟngthereof.

12. Assignment and Subleƫng.

12.1 Lessor's ConsentRequired.
(a) Lessee shallnot voluntarilyorby operaƟonof lawassign, transfer,mortgageor encumber(collecƟvely, "assignorassignment ") orsublet allorany partof Lessee'sinterest inthisLease orin thePremises withoutLessor'sprior wriƩenconsent. (b) UnlessLessee isa corporaƟonandits stockis publiclytradedon a naƟonal stockexchange, achangein thecontrol ofLesseeshall consƟtutean assignmentrequiring consent. Thetransfer,on a cumulaƟve basis,of 25%ormore ofthe voƟngcontrolof Lesseeshall consƟtuteachange incontrol forthis purpose. (c) Theinvolvement ofLessee oritsassets inany transacƟon,or seriesof transacƟons (byway ofmerger,sale, acquisiƟon, ﬁnancing, transfer,leveraged buyoutor otherwise),whether ornota formalassignment or hypothecaƟon ofthisLease orLessee's assetsoccurs,which resultsor willresultin a reducƟon ofthe NetWorth ofLessee byanamount greaterthan 25%of suchNetWorth asit wasrepresentedat the Ɵme ofthe execuƟon ofthis Leaseor atthe Ɵme ofthe most recentassignment towhich Lessorhasconsented, oras itexists immediatelypriorto said transacƟon ortransacƟons consƟtuƟng such reducƟon, whicheverwasor is greater,shall beconsidered anassignmentof thisLease towhich Lessormaywithhold itsconsent. " NetWorth ofLessee" shallmeanthe networth ofLessee (excludingany guarantors)established undergenerallyaccepted accounƟngprinciples. (d) Anassignment or subleƫng withoutconsentshall, atLessor's opƟon,bea Defaultcurable aŌer noƟce perParagraph13.1(d), ora non-curableBreach withoutthe necessityof any noƟceand graceperiod. If Lessorelectsto treatsuch unapprovedassignmentor subleƫngas anon-curableBreach, Lessormay either:
(i)terminate thisLease, or(ii)upon 30days wriƩen noƟce, increasethemonthly BaseRent to110%of theBase Rentthenin eﬀect. Further,in theeventof such Breachand rentaladjustment, (i)thepurchase priceof any opƟon topurchasethe Premisesheld byLesseeshall besubject tosimilaradjustment to110% ofthe price previouslyin eﬀect,and (ii)all ﬁxed andnon- ﬁxed rentaladjustments scheduledduringthe remainderof theLeaseterm shallbe increasedto110% ofthe scheduled adjustedrent.
(e) Lessee's remedyforany breachof Paragraph12.1 byLessorshall belimited tocompensatorydamages and/or injuncƟve relief. (f) Lessor mayreasonablywithhold consentto aproposedassignment or subleƫng ifLesseeis inDefault atthe Ɵmeconsentis requested. (g) Notwithstanding theforegoing, allowinga deminimis porƟon ofthe Premises,i.e.20 squarefeet orless,to beused bya thirdpartyvendor in connecƟonwith theinstallaƟon ofavending machineor payphoneshall not consƟtutea subleƫng.

12.2 Terms andCondiƟonsApplicable toAssignment andSubleƫng. (a) Regardless ofLessor's consent,noassignment or subleƫng shall: (i)be eﬀecƟvewithoutthe express wriƩen assumpƟon bysuch assigneeor sublesseeof the obligaƟons ofLesseeunder thisLease, (ii)release Lesseeofany obligaƟonshereunder, or(iii)alter theprimary liabilityofLessee forthe payment of Rentor forthe performanceofany other obligaƟons tobe performedbyLessee. (b) Lessormay acceptRent orperformanceof Lessee's obligaƟons fromanyperson otherthan Lesseepending approvalordisapproval ofan assignment.

Neithera delayin theapprovalor disapprovalof suchassignment northeacceptance ofRent orperformanceshall consƟtutea waiverorestoppel ofLessor's rightto exerciseits remediesfor Lessee'sDefaultor Breach.
(c) Lessor'sconsent toany assignmentor subleƫng shallnot consƟtutea consenttoany subsequentassignment or subleƫng. (d) Inthe eventof anyDefaultor Breachby Lessee,Lessormay proceeddirectly againstLessee, anyGuarantorsor anyoneelse responsibleforthe performanceof Lessee's obligaƟons underthisLease, includingany assigneeor sublessee,without ﬁrst exhausƟng Lessor's remediesagainstany otherperson or enƟtyresponsible thereforto Lessor,orany securityheld byLessor. (e) Each requestforconsent toan assignmentor subleƫngshallbe in wriƟng, accompaniedbyin formaƟon relevantto Lessor's determinaƟonas tothe ﬁnancialand operaƟonalresponsibility andappropriatenessof theproposed assigneeor sublessee,includingbut notlimited totheintended useand/or required modiﬁcaƟonof thePremises, ifany,together witha feeof $500as consideraƟon forLessor's consideringandprocessing saidrequest. Lesseeagrees toprovide Lessor withsuch otheror addiƟonal informaƟonand/or documentaƟonas maybe reasonablyrequested.(See alsoParagraph 36) (f) Any assigneeof,or sublesseeunder, thisLeaseshall, byreason of accepƟngsuch assignment,entering intosuch sublease,orentering intopossession ofthe Premisesor any porƟonthereof, bedeemed tohave assumedandagreed toconform andcomplywith eachand everyterm,covenant, condiƟonand obligaƟon hereinto beobserved orperformedby Lesseeduring theterm ofsaidassignment orsublease, otherthansuch obligaƟonsas arecontraryto orinconsistent with provisionsof anassignment orsubleaseto whichLessor has speciﬁcally consentedtoin wriƟng. (g) Lessor's consentto anyassignment or subleƫngshall nottransfer totheassignee orsublessee any OpƟongranted tothe originalLessee bythisLease unlesssuch transferis speciﬁcallyconsentedto byLessor in wriƟng. (SeeParagraph 39.2)

12.3 AddiƟonal Termsand CondiƟons Applicableto Subleƫng. The followingterms andcondiƟonsshall applyto anysubleƫngby Lesseeof allor anypartof thePremises andshall bedeemedincluded inall subleasesunder thisLeasewhether ornot expresslyincorporatedtherein:
(a) Lessee herebyassigns andtransfersto Lessorall ofLessee's interestinall Rentpayable onanysublease, andLessor maycollectsuch Rentand apply sametoward Lessee's obligaƟons underthisLease; provided,however, that unƟl aBreachshall occurin theperformanceof Lessee's obligaƟons, Lesseemaycollect saidRent. In theeventthat theamount collectedby LessorexceedsLessee's thenoutstanding oblig aƟonsanysuch excessshall berefundedto Lessee. Lessorshall not,by reasonof theforegoingor anyassignment ofsuch sublease,norby reasonof the collecƟonof Rent,be deemedliableto thesublessee forany failureofLessee toperform andcomply withanyof Lessee's obligaƟons tosuch sublessee. Lessee herebyirrevocably authorizesanddirects anysuch sublessee,uponreceipt ofa wriƩen noƟce fromLessor staƟngthata Breachexists inthe performanceofLessee's obligaƟonsunder thisLease,to payto LessorallRent dueand tobecome due underthe sublease. Sublesseeshallrely uponany such noƟce fromLessorand shallpay allRentsto Lessorwithout any obligaƟonor rightto inquireas towhether suchBreach exists,notwithstanding anyclaimfrom Lesseeto thecontrary. (b) Inthe eventof aBreachby Lessee,Lessor may,atits opƟon,require sublesseeto aƩorntoLessor, inwhich eventLessorshall undertakethe obligaƟonsof thesublessor undersuchsublease fromthe Ɵmeof theexerciseof said opƟon tothe expiraƟon ofsuch sublease;provided,however, Lessorshall notbe 15 liablefor anyprepaid rentsorsecurity depositpaid bysuch sublesseetosuch sublessoror foranyprior Defaultsor Breachesofsuch sublessor. (c) Any maƩer requiringthe consentofthe sublessorunder asublease shallalsorequire theconsent ofLessor. (d) Nosublessee shallfurther assignorsublet allor anypartof thePremises withoutLessor's prior wriƩenconsent. (e) Lessor shalldelivera copyof any noƟce ofDefaultor Breachby Lesseetothe sublessee,who shallhavethe rightto curethe DefaultofLessee within thegrace period,if any,speciﬁedin suchnoƟce. The sublesseeshallhave aright ofreimbursementand oﬀsetfrom andagainstLessee forany suchDefaults curedby thesublessee.

13. Default; Breach;Remedies.

13.1 Default; Breach. A "Default"is deﬁnedasa failureby theLesseeto complywith orperformany ofthe terms,covenants, condiƟonsorRules and RegulaƟonsunder thisLease. A"Breach" isdeﬁned asthe occurrenceofone ormore ofthefollowing Defaults,and thefailureof Lesseeto curesuch Defaultwithin anyapplicable graceperiod:
(a) The abandonmentof thePremises;the vacaƟngof thePremises priortothe expiraƟonor terminaƟonofthis Leasewithout providingacommercially reasonablelevel ofsecurity, orwherethe coverageof theproperty insurancedescribedin Paragraph8.3 isjeopardizedas aresult thereof,orwithout providing reasonableassurances tominimize potenƟalvandalism;or failureto deliverto Lessorexclusivepossession ofthe enƟrePremisesin accordanceherewith priortothe expiraƟonor terminaƟonof thisLease.
(b) Thefailure ofLessee tomakeany paymentof Rentorany SecurityDeposit requiredto bemadeby Lesseehereunder, whethertoLessor orto athird party,when due,to providereasonableevidence ofinsurance orsurety bond,orto fulﬁllany obligaƟonunderthis Leasewhich endangersorthreatens lifeor property,where suchfailure conƟnuesfora periodof 3business daysfollowing wriƩen noƟce to Lessee. THE ACCEPTANCEBY LESSOROFA PARTIALPAYMENT OF

RENTOR SECURITYDEPOSIT SHALLNOTCONSTITUTE AWAIVER OFANY OFLESSOR'SRIGHTS, INCLUDINGLESSOR'S RIGHTTORECOVER POSSESSIONOF THE PREMISES.
(c) Thefailure ofLessee toallowLessor and/orits agentsaccess tothePremises orthe commissionofwaste, actor acts consƟtuƟngpublic orprivate nuisance,and/or anillegal acƟvityonthe Premisesby Lessee,where such acƟons conƟnue fora periodof3 businessdays following wriƩen noƟce toLessee. In the eventthat Lesseecommits waste,anuisance oran illegal acƟvity asecond Ɵme then,the Lessormayelect totreat suchconductas anon-curable Breachrather thana Default.
(d) Thefailure byLessee toprovide(i) reasonable wriƩen evidenceofcompliance withApplicable Requirements,(ii) theservicecontracts, (iii)the rescissionof anunauthorized assignmentor subleƫng, (iv)an Estoppel CerƟﬁcate or ﬁnancialstatements, (v)a requestedsubordinaƟon,(vi) evidenceconcerning any guarantyand/or Guarantor,(vii) anydocumentrequested underParagraph 41,(viii) materialsafetydata sheets(MSDS), or(ix)any other documentaƟon or informaƟonwhich Lessormay reasonablyrequireof Lesseeunder theterms ofthisLease, whereany suchfailure conƟnues fora periodof10 daysfollowing wriƩen noƟceto Lessee.
(e) A DefaultbyLessee asto theterms, covenants, condiƟonsor provisionsof thisLease,or ofthe rulesadoptedunder Paragraph2.9 hereof,other than thosedescribed insubparagraphs 13.1(a),(b),(c) or(d), above,where suchDefault conƟnues fora periodof30 days aŌer wriƩen noƟce; provided, however,that if thenature ofLessee's Defaultissuch thatmore than30 daysarereasonably requiredfor itscure,then itshall notbedeemed tobe aBreach ifLesseecommences suchcure withinsaid 30dayperiod and thereaŌer diligentlyprosecutes suchcureto compleƟon. (f) The occurrenceofany ofthe followingevents: (i)the makingofany generalarrangement orassignment forthe beneﬁt ofcreditors; (ii)becominga "debtor"as deﬁnedin 11U.S.C.§ 101or anysuccessor statutethereto(unless, inthe caseofa peƟƟon ﬁled againstLessee,the sameis dismissedwithin 60days);(iii) theappointment ofa trusteeorreceiver totake possessionof substanƟallyallof Lessee'sassets locatedatthe Premisesor ofLessee'sinterest inthis Lease,where possessionis notrestored toLesseewithin 30days; or(iv) the aƩachment, execuƟon orother judicialseizureof substanƟallyall ofLessee'sassets locatedat the Premisesor ofLessee's interestinthis Lease,where suchseizure isnotdischarged within30 days;provided,however, inthe eventthatany provisionof this subparagraph(e) iscontrary toanyapplicable law,such provisionshall beofno forceor eﬀect,andnot aﬀectthe validityofthe remainingprovisions. (g) The discoverythat any ﬁnancial statementofLessee orof anyGuarantorgiven toLessor wasmateriallyfalse. (h) Ifthe performanceof Lessee's obligaƟonsunder thisLease isguaranteed: (i)the deathof aGuarantor,(ii) the terminaƟon ofaGuarantor's liability withrespect tothis Leaseotherthan inaccordance withthe termsofsuch guaranty,(iii) aGuarantor'sbecoming insolventor thesubjectof abankruptcy ﬁling,(iv) a Guarantor'srefusal tohonor theguaranty,or (v)a Guarantor'sbreach ofitsguaranty obligaƟonon ananƟcipatorybasis, andLessee's failure,within60 daysfollowing wriƩen noƟce ofany suchevent,to provide wriƩen alternaƟve assurance orsecurity,which, whencoupled withthethen exisƟngresources ofLessee,equals or exceedsthe combined ﬁnancial resourcesofLessee andthe Guarantorsthat existedatthe Ɵmeof execuƟonofthis Lease.

13.2 Remedies. IfLessee failsto performanyof its aﬃrmaƟve duƟes or obligaƟons, within10 days aŌer wriƩen noƟce (or incase ofanemergency, without noƟce),Lessor may,at itsopƟon,perform suchduty orobligaƟon onLessee'sbehalf, includingbut notlimitedto theobtaining ofreasonablyrequired bonds, insurancepolicies, orgovernmental licenses,permitsor approvals. Lesseeshall paytoLessor anamount equalto115% ofthe costsandexpenses incurredby Lessor insuch performanceupon receiptofan invoicetherefor. In theeventof aBreach, Lessormay,with orwithout further noƟceor demand,and withoutlimiƟng Lessor inthe exerciseof anyrightor remedywhich Lessormay havebyreason ofsuch Breach:
(a) Terminate Lessee'sright topossessionof thePremises byany lawfulmeans,in whichcase thisLeaseshall terminateand Lesseeshallimmediately surrenderpossession toLessor. Insuch eventLessor shallbe enƟtledtorecover fromLessee: (i)the unpaidRent whichhadbeen earnedat the Ɵme of terminaƟon; (ii)the worthat the Ɵmeof awardof theamount bywhichthe unpaidrent whichwouldhave beenearned aŌer terminaƟon unƟl the Ɵme ofaward exceedsthe amountof suchrental lossthatthe Lesseeproves couldhave beenreasonablyavoided; (iii)the worthatthe Ɵmeof awardofthe amountby whichthe unpaidrentfor thebalance ofthe term aŌerthe Ɵmeof awardexceeds theamountof suchrental lossthatthe Lesseeproves couldbereasonably avoided;and (iv)any otheramount necessaryto compensateLessor forallthe detrimentproximately causedby theLessee'sfailure toperform its obligaƟonsunder thisLease orwhichin theordinary courseof thingswould belikelyto resulttherefrom, includingbut notlimitedto thecost ofrecoveringpossession ofthe Premises,expensesof releƫng,including necessary renovaƟon and alteraƟon ofthePremises, reasonable aƩorneys' fees,and that porƟonof anyleasing commissionpaidby Lessorin connecƟonwiththis Leaseapplicable tothe unexpiredtermof thisLease. The worthatthe Ɵmeof awardofthe amountreferred toinprovision (iii)of theimmediately preceding sentenceshall becomputed by discounƟngsuch amountat thediscount rateofthe FederalReserve Bankofthe Districtwithin whichthePremises arelocated atthe Ɵmeof awardplus onepercent. Eﬀortsby Lessorto miƟgatedamagescaused byLessee's Breachofthis Leaseshall notwaiveLessor's rightto recoverany damagesto whichLessor isotherwise enƟtled. If terminaƟonof thisLease isobtainedthrough theprovisional remedyofunlawful detainer,Lessor shallhavethe rightto recover insuch proceedingany unpaidRentand damagesas arerecoverable therein,orLessor mayreserve therightto recoverall oranypart thereofin aseparate suit. If a noƟceand graceperiod requiredunderParagraph 13.1was notpreviously given,a noƟce topay rentorquit, orto performorquit givento Lesseeunder theunlawful detainerstatute shallalso consƟtutethe noƟce requiredby Paragraph13.1. Insuch case,the applicablegraceperiod requiredby Paragraph13.1and theunlawful detainerstatute shallrun concurrently,andthe failureof Lesseeto curetheDefault withinthe greaterofthe twosuch graceperiodsshall consƟtuteboth anunlawful detainerand aBreach ofthisLease enƟtlingLessor tothe remediesprovidedfor inthis Leaseand/orby saidstatute. (b) ConƟnuethe Leaseand Lessee'srightto possessionand recovertheRent asit becomesdue, inwhichevent Lesseemay subletorassign, subjectonly 16 toreasonable limitaƟons. Actsofmaintenance, eﬀortsto relet,and/or theappointmentof areceiver toprotectthe Lessor'sinterests, shallnot consƟtute a terminaƟonof theLessee's righttopossession.
(c) Pursueany otherremedy nowor hereaŌer availableunder thelaws orjudicialdecisions ofthe statewhereinthe Premisesare located. The expiraƟon or terminaƟon ofthis Leaseand/orthe terminaƟonof Lessee'sright topossessionshall notrelieve Lesseefromliability underany indemnityprovisionsof thisLease asto maƩersoccurring oraccruingduring theterm hereofor byreasonof Lessee'soccupancy ofthePremises.

13.3 Inducement Recapture.Any agreementfor freeorabated rentor othercharges,the costof tenantimprovementsfor Lesseepaid foror performedby Lessor,or forthe givingorpaying byLessor toor forLesseeof anycash orotherbonus, inducementor consideraƟonforLessee's enteringinto thisLease, allofwhich concessionsare hereinaŌerreferred toas"Inducement Provisions,"shall bedeemed condiƟoneduponLessee's fulland faithfulperformanceof allof theterms, covenantsand condiƟonsof thisLease. UponBreach ofthis LeasebyLessee, anysuch InducementProvisionshall automaƟcallybe deemeddeletedfrom thisLease andof nofurther forceor eﬀect, andany rent,other charge,bonus,inducement or consideraƟon theretoforeabated,given orpaid byLessorunder suchan InducementProvision shallbe immediatelydueand payableby Lesseeto Lessor,notwithstandingany subsequentcure ofsaidBreach byLessee. Theacceptance by Lessorof rentor thecureof theBreach which iniƟated the operaƟonof thisparagraph shallnotbe deemeda waiverbyLessor ofthe provisionsof thisparagraph unless speciﬁcally sostated in wriƟngby Lessorat theƟme ofsuchacceptance.

13.4 Late Charges. Lessee herebyacknowledges thatlatepayment byLessee ofRentwill causeLessor toincurcosts notcontemplated bythis Lease,theexact amountof whichwill beextremely diﬃcult toascertain. Such costsinclude,but arenot limitedto,processing and accounƟng charges,andlate chargeswhich maybe imposedupon Lessorby anyLender. Accordingly,if anyRent shallnotbe receivedby Lessorwithin5 days aŌer suchamountshall bedue, then,without any requirementfor noƟceto Lessee,Lesseeshall immediatelypay toLessor aone- Ɵmelate chargeequal to10%of eachsuch overdueamountor $100,whichever is greater. TheparƟes herebyagreethat suchlate chargerepresents afairand reasonable esƟmate ofthecosts Lessorwill incurbyreason ofsuch latepayment.

Acceptanceof suchlate chargebyLessor shallin noevent consƟtuteawaiver ofLessee's DefaultorBreach withrespect tosuchoverdue amount,nor preventthe exerciseof anyof theotherrights andremedies grantedhereunder. Inthe eventthat alatecharge ispayable hereunder,whetheror notcollected, for3 consecuƟve installmentsof BaseRent, thennotwithstandingany provisionof thisLease tothecontrary, BaseRent shall,atLessor's opƟon,become dueandpayable quarterlyin advance.

13.5 Interest. Anymonetary paymentdue Lessorhereunder,other thanlate charges,notreceived byLessor, whendueshall bearinterest fromthe 31stday aŌerit wasdue. Theinterest ("Interest")charged shallbe computedatthe rateof 10%perannum butshall notexceedthe maximumrate allowedby law. Interest is payablein addiƟonto thepotenƟallate chargeprovided forin Paragraph13.4.

13.6 Breach byLessor.
(a) NoƟce ofBreach. Lessorshall notbe deemedin breachofthis Leaseunless Lessorfailswithin areasonable Ɵmetoperform an obligaƟon requiredto beperformed byLessor. Forpurposes ofthis Paragraph,a reasonable Ɵmeshall inno eventbeless than30 days aŌerreceipt byLessor, andany Lenderwhosename andaddress shallhave beenfurnishedto Lesseein wriƟngfor suchpurpose,of wriƩen noƟce specifyingwhereinsuch obligaƟonof Lessorhasnot beenperformed; provided,however, thatif thenatureof Lessor's obligaƟon issuch thatmorethan 30days arereasonablyrequired forits performance,thenLessor shallnot bein breachif performanceis commencedwithinsuch 30day periodand thereaŌerdiligentlypursued toco mpleƟon. (b) Performanceby Lesseeon BehalfofLessor . In theeventthat neitherLessor norLender curessaidbreach within30 days aŌerreceipt ofsaid noƟce, orif havingcommenced saidcurethey donot diligentlypursue itto compleƟon, thenLessee mayelectto curesaid breachatLessee's expenseand oﬀsetfrom Rent theactual andreasonable costtoperform suchcure, provided,however, thatsuch oﬀset shallnot exceedanamount equalto thegreaterof onemonth's BaseRent or theSecurity Deposit,reserving Lessee'srightto seekreimbursement fromLessor foranysuch expensein excessofsuch oﬀset. Lesseeshalldocument thecost ofsaid cureand supplysaid documentaƟontoLessor.

14. CondemnaƟon. If thePremisesor any porƟon thereofaretaken underthe powerof eminentdomainor soldunder thethreatof theexercise ofsaidpower (collecƟvely "CondemnaƟon"), thisLease shallterminateas tothe parttaken asofthe datethe condemningauthoritytakes Ɵtleor possession,whichever ﬁrst occurs.

Ifmore than10% oftherentable ﬂoorarea ofthe Premises,ormore than25% ofLessee'sReserved ParkingSpaces, ifany,are takenby CondemnaƟon,Lessee may,at Lessee's opƟon, tobe exercisedin wriƟng within10 days aŌer Lessorshallhave givenLessee wri Ʃen noƟceof suchtaking (orinthe absenceof such noƟce, within10 days aŌer thecondemning authorityshallhave takenpossession) terminatethis Leaseasof thedate thecondemningauthority takessuch possession. If Lesseedoes notterminate thisLease inaccordancewith theforegoing, thisLease shallremainin fullforce and eﬀectas tothe porƟonofthe Premisesremaining, exceptthat the BaseRent shallbe reducedin proporƟon tothe reducƟonin uƟlityofthe Premisescaused bysuch CondemnaƟon. CondemnaƟon awardsand/orpayments shallbe theproperty ofLessor, whethersuchaward shallbe madeas compensaƟonfor diminuƟon invalue oftheleasehold, thevalue ofthepart taken,or forseverance damages;provided, however,that Lesseeshallbe enƟtledto anycompensaƟon paidbythe condemnorfor Lessee's relocaƟonexpenses, lossof businessgoodwill and/orTrade Fixtures,without regardtowhether ornot thisLease isterminatedpursuant tothe provisionsofthis Paragraph. All AlteraƟonsand UƟlity InstallaƟons madeto thePremises byLessee,for purposesof CondemnaƟononly, shallbeconsidered theproperty oftheLessee andLessee shallbe enƟtled toany andall compensaƟonwhich ispayable therefor. In theevent thatthis Leaseisnot terminatedby reasonofthe CondemnaƟon,Lessor shallrepairany damageto the Premisescaused bysuch CondemnaƟon.

15. Brokerage Fees.

15.1 AddiƟonalCommission. In addiƟontothe paymentsowed pursuantto Paragraph1.10above, Lessoragrees that: (a) ifLessee exercisesany OpƟon, (b)if Lesseeor anyone aﬃliated withLesseeacquires fromLessor anyrights tothePremises orother premisesownedby Lessorand locatedwithinthe Project,(c) ifLessee remainsin possessionof thePremises,with theconsent ofLessor, aŌerthe expiraƟon ofthis Lease,or(d) ifBase Rentisincreased, whetherby agreementor operaƟonof anescalaƟon clauseherein,then, Lessorshall payBrokers afeein accordancewith thefeeschedule ofthe Brokersin eﬀect atthe Ɵmethe Leasewas executed. Theprovisions ofthisparagraph areintended tosupersede theprovisionsof anyearlier agreementtothe contrary.

15.2 AssumpƟon of ObligaƟons. Anybuyer ortransfereeof Lessor'sinterest inthisLease shallbe deemedtohave assumedLessor's obligaƟonhereunder.

Brokersshall bethird party beneﬁciariesof theprovisions ofParagraphs 1.10,15,22 and31. IfLessor failsto paytoBrokers anyamounts dueas andforbrokerage feespertaining tothis Leasewhendue, thensuch amountsshall accrueInterest. In addiƟon, ifLessorfails topay anyamountsto Lessee'sBroker whendue, Lessee's Brokermay send wriƩen noƟce toLessor andLessee ofsuch failureandif Lessorfails topaysuch amountswithin 10days aŌer said noƟce, Lesseeshall paysaid moniesto itsBroker and oﬀsetsuch amountsagainst Rent. InaddiƟon,Lessee's Brokershall bedeemedto bea thirdparty beneﬁciary ofany commissionagreement enteredinto byand/or betweenLessorand Lessor'sBroker forthe limitedpurposeof collecƟngany brokeragefeeowed.

15.3 RepresentaƟonsand IndemniƟesof BrokerRelaƟonships. Lesseeand Lessoreach representandwarrant tothe otherthatit hashad nodealingswith any person, ﬁrm, broker,agent orﬁnder(other thanthe Brokersand Agents,ifany) in connecƟon withthisLease, andthat nooneother thansaid namedBrokers and Agentsis enƟtledto anycommissionor ﬁnder'sfee inconnecƟon herewith. Lessee andLessor doeachhereby agreeto indemnify,protect,defend andhold theother harmlessfrom andagainst liabilityfor compensaƟon orcharges whichmay beclaimedby anysuch unnamedbroker, ﬁnder orother similarpartyby reasonof any dealingsor acƟonsof theindemnifyingParty, includingany costs,expenses, aƩorneys'feesreasonably incurredwith respectthereto. 17 16. Estoppel CerƟﬁcates.
(a) Each Party(as " RespondingParty")shall within10 days aŌer wriƩen noƟce from theother Party(the" RequesƟng Party")execute, acknowledgeand deliverto the RequesƟng Partyastatement in wriƟng inform similartothe thenmost current" Estoppel CerƟﬁcate" formpublished byAIRCRE, plussuch addiƟonal informaƟon, conﬁrmaƟon and/orstatements asmaybe reasonablyrequested bythe RequesƟngParty. (b) Ifthe RespondingParty shallfailto executeor delivertheEstoppel CerƟﬁcatewithin such10 dayperiod,the RequesƟngParty mayexecutean Estoppel CerƟﬁcate staƟng that: (i)theLease isin fullforce and eﬀectwithout modiﬁcaƟonexcept asmaybe representedby the RequesƟngParty, (ii)there areno uncureddefaults inthe RequesƟngParty'sperformance, and(iii) ifLessor isthe RequesƟng Party,not morethanone month'srent hasbeenpaid inadvance.

ProspecƟvepurchasers andencumbrancers mayrelyupon the RequesƟng Party'sEstoppel CerƟﬁcate,andthe RespondingParty shallbeestopped fromdenying the truthof thefacts containedinsaid CerƟﬁcate. In addiƟon, Lesseeacknowledgesthat anyfailure onitspart toprovide suchanEstoppel CerƟﬁcatewill exposeLessor torisks and potenƟally causeLessorto incurcosts notcontemplated bythisLease, theextent ofwhichwill beextremely diﬃculttoascertain. Accordingly, shouldthe Lesseefail toexecute and/ordelivera requestedEstoppel CerƟﬁcatein aƟmelyfashion themonthly BaseRentshall be automaƟcally increased,withoutany requirementfor noƟceto Lessee,byan amountequal to10% ofthethen exisƟngBase Rentor$100, whicheveris greaterforremainder ofthe Lease. The ParƟes agreethat suchincrease inBaseRent representsfair andreasonable compensaƟonforthe addiƟonalrisk/costs thatLessorwill incurby reasonofLessee's failureto providethe Estoppel CerƟﬁcate. Suchincrease inBase Rentshall innoevent consƟtutea waiverofLessee's Defaultor Breachwithrespect tothe failureto provide theEstoppel CerƟﬁcatenor preventtheexercise ofany ofthe otherrightsand remediesgranted hereunder. (c) IfLessor desiresto ﬁnance, reﬁnance,or sellthe Premises,or anypartthereof, Lesseeand allGuarantorsshall within10 days aŌer wriƩen noƟce fromLessor deliverto any potenƟallender orpurchaser designatedby Lessorsuch ﬁnancial statementsas maybereasonably requiredby suchlenderor purchaser, includingbut notlimited toLessee's ﬁnancial statementsfor thepast 3years. Allsuch ﬁnancialstatementsshall bereceived byLessorand suchlender orpurchaser in conﬁdenceand shallbe usedonlyfor thepurposes hereinset forth.

17. DeﬁniƟon ofLessor. Theterm "Lessor"as usedhereinshall meanthe owneror ownersatthe Ɵmein quesƟonofthe fee Ɵtle tothePremises, or,if thisis a sublease,of theLessee's interestinthe priorlease. In theeventof atransfer ofLessor's Ɵtle orinterest inthePremises orthis Lease,Lessor shalldeliverto the transfereeor assignee(in cashorby credit)any unusedSecurity Depositheldby Lessor. Uponsuchtransfer orassignment anddeliveryof theSecurity Deposit,as aforesaid,the priorLessor shallberelieved ofall liabilitywith respecttothe obligaƟonsand/or covenantsunderthis Lease thereaŌer tobeperformed bythe Lessor.

Subjectto theforegoing, the obligaƟonsand/or covenantsin thisLease tobeperformed bythe Lessorshallbe bindingonly upontheLessor ashereinabove deﬁned.

18. Severability. The invalidityofany provisionof thisLease,as determinedby acourt ofcompetent jurisdicƟon, shallin noway aﬀect thevalidity ofanyother provisionhereof.

19. Days. Unless otherwisespeciﬁcallyindicated tothe contrary,theword "days"as usedin thisLeaseshall meanand refertocalendar days.

20. LimitaƟon onLiability. The obligaƟons ofLessor underthisLease shallnot consƟtutepersonal obligaƟonsofLessor, orits partners,members,directors, oﬃcers orshareholders, andLessee shalllookto theProject, andto nootherassets ofLessor, forthe saƟsfacƟon ofany liabilityofLessor withrespect tothis Lease,andshall notseek recourseagainst Lessor'spartners,members, directors, oﬃcers orshareholders, oranyof theirpersonal assetsforsuch saƟsfacƟon.

21. Time ofEssence. Timeis ofthe essencewithrespect tothe performanceof all obligaƟonsto beperformed orobservedby the ParƟes underthisLease.

22. No Prioror OtherAgreements;Broker Disclaimer . ThisLeasecontains allagreements betweenthe ParƟeswithrespect toany maƩer menƟonedherein, andno otherprior orcontemporaneous agreementorunderstanding shallbe eﬀecƟve. LessorandLessee eachrepresents andwarrantsto theBrokers thatithas made,and isrelying solelyupon, itsown invesƟgaƟon asto thenature, quality,characterand ﬁnancialresponsibility oftheother Partyto thisLeaseand asto theuse, nature, qualityand characterof thePremises. Brokershave noresponsibility withrespectthereto orwith respecttoany defaultor breachhereofby eitherParty.

23. NoƟces.

23.1 NoƟce Requirements. All noƟcesrequired orpermiƩedby thisLease orapplicablelaw shallbe in wriƟngand maybe deliveredin person(byhand orby courier)or maybe sentbyregular, cerƟﬁedor registeredmail orU.S.Postal ServiceExpress Mail,withpostage prepaid,or byfacsimiletransmission, orby email,and shallbe deemed suﬃciently givenifserved ina manner speciﬁed inthisParagraph 23. Theaddressesnoted adjacentto aParty'ssignature onthis Leaseshall bethat Party'saddress fordelivery ormailingof noƟces. EitherParty mayby wriƩen noƟce to theotherspecify a diﬀerent addressfor noƟce, exceptthat uponLessee's takingpossession ofthe Premises,thePremises shall consƟtute Lessee'saddress for noƟce. Acopy ofall noƟces toLessor shallbeconcurrently transmiƩedto such partyor parƟesat suchaddressesas Lessormay from Ɵme to Ɵme hereaŌer designatein wriƟng.

23.2 Date ofNoƟce. Any noƟce sentbyregistered or cerƟﬁed mail,returnreceipt requested,shall bedeemedgiven onthe dateof deliveryshownon the receiptcard, orif nodeliverydate isshown, thepostmark thereon. If sentby regularmailthe noƟceshall bedeemedgiven 72hours aŌerthe sameisaddressed as requiredherein andmailed withpostageprepaid. NoƟces deliveredby UnitedStatesExpress Mailor overnightcourierthat guaranteesnext daydeliveryshall be deemedgiven 24hours aŌerdeliveryof thesame tothe PostalServiceor courier. NoƟcesdeliveredby hand,or transmiƩedbyfacsimile transmissionor byemail shallbe deemeddelivered uponactualreceipt. If noƟceis receivedona Saturday,Sunday orlegalholiday, itshall bedeemedreceived onthe nextbusiness day.

23.3 OpƟons. Notwithstandingthe foregoing,in ordertoexercise any OpƟons (seeparagraph39), the NoƟce mustbesent by CerƟﬁed Mail(return receipt requested),Express Mail(signature required),courier(signature required)or someother methodologythatprovides areceipt establishingthedate the noƟce was receivedby theLessor.

24. Waivers.
(a) No waiverby Lessorofthe Defaultor Breachof anyterm,covenant or condiƟon hereofbyLessee, shallbe deemedawaiver ofany otherterm, covenantor condiƟonhereof, orofany subsequentDefault orBreach byLesseeof thesame orofany otherterm, covenantor condiƟon hereof. Lessor'sconsent to, orapproval of,any actshallnot bedeemed torender unnecessarytheobtaining ofLessor's consentto,or approvalof, anysubsequentor similaract byLessee, orbe construedas thebasis ofanestoppel toenforce theprovision orprovisionsof thisLease requiringsuchconsent. (b) Theacceptance ofRent byLessorshall notbe awaiverof anyDefault orBreach byLessee. Anypayment byLesseemay beaccepted byLessoron accountof moniesor damagesdueLessor, notwithstandingany qualifyingstatements or condiƟonsmade byLessee inconnecƟontherewith, whichsuch statements and/or condiƟons shallbe ofnoforce or eﬀect whatsoeverunless speciﬁcallyagreedto in wriƟng byLessorat orbefore the Ɵmeof depositof suchpayment. (c) THEPARTIES AGREETHAT THETERMSOF THISLEASE SHALLGOVERN WITHREGARDTO ALLMATTERS RELATEDTHERETOAND HEREBYWAIVE THE PROVISIONSOF ANYPRESENT ORFUTURESTATUTE TOTHE EXTENTTHAT SUCHSTATUTEIS INCONSISTENTWITH THISLEASE.

25. Disclosures RegardingThe Natureofa RealEstate Agency RelaƟonship. 18 (a) When enteringinto adiscussionwith areal estateagent regardingareal estate transacƟon, aLessoror Lesseeshould fromtheoutset understand whattype ofagency relaƟonshipor representaƟon ithas withthe agentoragents inthe transacƟon. Lessor andLessee acknowledgebeingadvised bythe Brokersin this transacƟon, asfollows:
(i) Lessor'sAgent . A Lessor'sagent undera lisƟng agreementwith theLessoracts asthe agentforthe Lessoronly. A Lessor'sagentor subagent hasthe following aﬃrmaƟve obligaƟons: To theLessor: A ﬁduciarydutyof utmostcare, integrity,honesty,and loyaltyin dealingswiththe Lessor. Tothe Lesseeand theLessor: (a) Diligentexerciseof reasonableskills andcare inperformanceof theagent's duƟes. (b) Aduty ofhonestand fairdealing andgood faith. (c) Aduty to discloseall factsknown totheagent materially aﬀecƟng thevalue ordesirabilityof theproperty thatarenot knownto, orwithinthe diligent aƩenƟon and observaƟonof, theParƟes. Anagent isnot obligatedto revealtoeither Partyany conﬁdenƟal informaƟonobtained fromthe otherPartywhich doesnot involvethe aﬃrmaƟve duƟes setforth above.
(ii) Lessee'sAgent. Anagent canagree toactas agentfor theLesseeonly. In these situaƟons,the agentis notthe Lessor'sagent,even ifby agreementthe agentmay receive compensaƟonfor servicesrendered, eitherin fullorin partfrom theLessor. Anagent acƟngonlyfor aLessee hasthe following aﬃrmaƟve obligaƟons. To theLessee: A ﬁduciary dutyof utmostcare,integrity, honesty,and loyaltyindealings withthe Lessee. To theLessee andthe Lessor: (a) Diligentexercise ofreasonable skillsandcare inperformance ofthe agent's duƟes. (b)A dutyofhonest andfair dealingandgood faith. (c)A dutytodisclose allfacts knownto theagent materially aﬀecƟngthe valueor desirabilityof thepropertythat arenot knownto,or withinthe diligent aƩenƟonand observaƟonof, theParƟes.

Anagent isnot obligatedtoreveal toeither Partyany conﬁdenƟal informaƟonobtained fromthe otherPartywhich doesnot involvethe aﬃrmaƟve duƟes set forth above.
(iii) Agent RepresenƟngBothLessor andLessee. Areal estateagent, either acƟng directlyorthrough oneor moreassociatelicensees, canlegally be theagent ofboth theLessorand theLessee ina transacƟon,butonly withthe knowledgeandconsent ofboth theLessorand theLessee. In adualagency situaƟon, theagent hasthe following aﬃrmaƟve obligaƟons toboth theLessor andtheLessee: (a)A ﬁduciarydutyof utmostcare, integrity,honestyand loyaltyin thedealings witheither Lessoror theLessee. (b)Other duƟesto theLessorand theLessee asstatedabove insubparagraphs (i)or(ii). In represenƟngboth LessorandLessee, the agentmay not,without theexpresspermission ofthe respecƟveParty, disclosetothe otherParty conﬁdenƟal informaƟon,including, butnot limitedto,facts relaƟng toeither Lessee'sor Lessor's ﬁnancial posiƟon, moƟvaƟons, bargaining posiƟon,or otherpersonal informaƟon thatmay impactrent,including Lessor'swillingness to accepta rentless thanthe lisƟng rentor Lessee'swillingness topayrent greaterthan therento ﬀered. The aboveduƟesof theagent ina realestate transacƟon do notrelieve aLessor orLesseefrom theresponsibility toprotect theirowninterests. Lessor andLesseeshould carefullyread allagreementsto assurethat they adequatelyexpress theirunderstanding ofthe transacƟon. A realestate agentisa person qualiﬁed toadviseabout realestate. Iflegal ortax adviceis desired,consult acompetent professional. BothLessorand Lesseeshould stronglyconsider obtainingtaxadvice froma competentprofessionalbecause thefederal andstatetax consequencesof a transacƟon canbecomplex andsubject tochange. (b) Brokershave noresponsibility withrespectto anydefault orbreachhereof byeither Party. The ParƟesagree thatno lawsuitorother legal proceedinginvolving anybreach ofduty,error oromission relaƟngto thisLeasemay bebrought againstBrokermore thanone year aŌerthe StartDate andthat the liability(including courtcosts and aƩorneys'fees), ofany Brokerwith respecttoany suchlawsuit and/orlegalproceeding shallnot exceedthefee receivedby such Brokerpursuant tothis Lease;provided,however, thatthe foregoing limitaƟon oneachBroker's liabilityshall notbeapplicable toany grossnegligenceor willful misconductof suchBroker.
(c) Lessorand Lesseeagree to idenƟfyto Brokersas "ConﬁdenƟal"any communicaƟonor informaƟon givenBrokers thatisconsidered bysuch Partyto be conﬁdenƟal.

26. No RightTo Holdover. Lessee hasno righttoretain possessionof thePremises oranypart thereofbeyond the expiraƟonor terminaƟonof thisLease. Ator priorto the expiraƟon or terminaƟonof thisLease Lesseeshall deliverexclusivepossession ofthe PremisestoLessor. For purposesofthis provisionand Paragraph

13.1(a),exclusive possessionshall meanthatLessee shallhave vacatedthe Premises,removedall ofits personalpropertytherefrom andthat thePremiseshave been returnedin the condiƟon speciﬁed inthis Lease. Inthe eventthatLessee doesnot deliverexclusivepossession toLessor as speciﬁedabove, thenLessor's damages duringany holdoverperiod shallbecomputed atthe amountof theRent(as deﬁnedin Paragraph4.1)due duringthe lastfullmonth beforethe expiraƟonor terminaƟonof thisLease (disregardinganytemporary abatementof Rentthat mayhavebeen in eﬀect), butwithBase Rentbeing 150%ofthe BaseRent payable duringsuch lastfull month. Nothing containedherein shallbe construedasconsent byLessor toanyholding overby Lessee.

27. CumulaƟve Remedies. Noremedyor elecƟonhereunder shallbedeemed exclusivebut shall,wherever possible,be cumulaƟve withall otherremediesat lawor inequity.

28. Covenants and CondiƟons; ConstrucƟon ofAgreement. All provisionsofthis Leaseto beobserved orperformedby Lesseeare bothcovenantsand condiƟons.

Inconstruing thisLease, allheadingsand Ɵtlesare forthe convenienceofthe ParƟesonly andshallnot beconsidered apartof thisLease. Whenever requiredbythe context,the singularshall includetheplural andvice versa. ThisLeaseshall notbe construedasif preparedby oneofthe ParƟes,but ratheraccording toitsfair meaningas awhole, asifboth ParƟeshad preparedit.

29. Binding Eﬀect;Choice ofLaw. ThisLease shallbebinding uponthe ParƟes,their personalrepresentaƟves,successors andassigns andbegoverned bythe laws ofthe Statein whichthePremises arelocated. Any liƟgaƟonbetweenthe ParƟeshereto concerningthisLease shallbe iniƟatedinthe countyin whichthe Premises arelocated. Signatures tothisLease accomplishedby meansof electronicsignatureor similartechnology shallbelegal andbinding.

30. SubordinaƟon; AƩornment; Non-Disturbance.

30.1 SubordinaƟon. ThisLease andany OpƟongrantedhereby shallbe subjectandsubordinate toany groundlease,mortgage, deedof trust,or other hypothecaƟonor securitydevice (collecƟvely,"SecurityDevice"), nowor hereaŌerplaced uponthePremises, toany andalladvances madeon thesecuritythereof, andto allrenewals, modiﬁcaƟons,andextensions thereof. Lesseeagrees thattheholders ofany suchSecurityDevices (inthis Leasetogetherreferred toas " Lender") shallhave noliability or obligaƟonto performany ofthe obligaƟonsofLessor underthis Lease. Any Lendermay electtohave thisLease and/orany OpƟongranted herebysuperior tothe lienofits SecurityDevice bygiving wriƩen noƟcethereof toLessee, whereuponthisLease andsuch OpƟonsshallbe deemedprior tosuch SecurityDevice, notwithstandingthe relaƟvedatesof the documentaƟon or recordaƟon thereof.

30.2 AƩornment. Inthe eventthat Lessortransfers Ɵtle tothe Premises,orthe Premisesare acquiredbyanother uponthe foreclosureor terminaƟonofa SecurityDevice towhich thisLeaseis subordinated(i) Lesseeshall, subjecttothe non-disturbanceprovisions ofParagraph30.3, aƩornto suchnewowner, andupon request,enter intoa newlease,containing allof theterms andprovisionsof thisLease, withsuchnew ownerfor theremainderof theterm hereof,or, atthe elecƟon ofthe newowner, thisLeasewill automaƟcallybecome anew leasebetweenLessee andsuch newowner,and (ii)Lessor shall thereaŌerbe relievedof anyfurther obligaƟonshereunder andsuch newownershall assumeall ofLessor's obligaƟons,exceptthat suchnew ownershallnot: (a)be liableforany actor omissionof any
priorlessor orwith respecttoevents occurringprior to acquisiƟon ofownership;(b) besubject toany oﬀsets ordefenses whichLesseemight haveagainst anyprior lessor, (c)be boundbyprepayment ofmore thanone month'srent,or (d)be liableforthe returnof anysecuritydeposit paidto anyprior lessor. 19 30.3 Non-Disturbance. Withrespect toSecurity Devicesenteredinto byLessor aŌerthe execuƟon ofthis Lease,Lessee's subordinaƟon ofthis Leaseshall be subjectto receivinga commerciallyreasonablenon-disturbance agreement(a "Non-DisturbanceAgreement ") fromtheLender whichNon-Disturbance Agreement providesthat Lessee'spossession ofthePremises, andthis Lease,including any opƟonsto extendthe termhereof,will notbe disturbedsolong asLessee isnot in Breachhereof and aƩorns totherecord ownerof thePremises. Further,within 60days aŌerthee xecuƟon ofthis Lease,Lessorshall, ifrequested byLessee, useits commerciallyreasonable eﬀortsto obtainaNon-Disturbance Agreementfrom theholder ofanypre-exi sƟng SecurityDevice whichissecured bythe Premises. In the eventthat Lessoris unabletoprovide theNon-Disturbance Agreementwithin said60days, thenLessee may,atLessee's opƟon,directly contactLenderand aƩempt to negoƟate forthe execuƟonanddelivery ofa Non-DisturbanceAgreement.

30.4 Self-ExecuƟng. Theagreements containedin thisParagraph30 shallbe eﬀecƟvewithoutthe execuƟonof anyfurtherdocuments; provided,however, that, upon wriƩen requestfrom Lessorora Lenderin connecƟonwith asale, ﬁnancing or reﬁnancing ofthePremises, Lesseeand Lessorshallexecute suchfurther wriƟngs asmay bereasonably requiredtoseparately documentany subordinaƟon, aƩornment and/orNon-DisturbanceAgreement providedfor herein.

31. AƩorneys' Fees. IfanyParty orBroker bringsan acƟon orproceeding involvingthe Premiseswhetherfounded intort, contractorequity, orto declarerights hereunder,the PrevailingParty (ashereaŌer deﬁned) inany suchproceeding, acƟon,orappeal thereon,shall be enƟtledto reasonableaƩorneys' fees. Such feesmay beawarded inthe samesuitor recoveredin aseparate suit,whetheror notsuch acƟonorproceeding ispursued todecisionor judgment. Theterm, "Prevailing Party"shall include,without limitaƟon,aParty orBroker who substanƟally obtainsordefeats therelief sought,asthe casemay be,whetherby compromise, seƩlement,judgment, orthe abandonmentbythe otherParty orBroker ofitsclaim ordefense. The aƩorneys' feesaward shallnotbe computedin accordancewith anycourt feeschedule, butshallbe suchas tofully reimburseall aƩorneys' feesreasonably incurred. In addiƟon,Lessor shallbe enƟtled to aƩorneys' fees,costs and expensesincurred inthe preparaƟonandservice of noƟces ofDefault and consultaƟonsin connecƟontherewith, whetherornot alegal acƟonissubsequently commencedin connecƟonwith suchDefaultor resulƟngBreach ($200is areasonableminimum peroccurrence forsuchservices and consultaƟon).

32. Lessor's Access;Showing Premises;Repairs. Lessorand Lessor'sagentsshall havethe rightto enterthePremises atany Ɵme,inthe caseof anemergency,and otherwiseat reasonable Ɵmes aŌer reasonableprior noƟcefor thepurpose ofshowingthe sameto prospecƟvepurchasers,lenders, ortenants, andmakingsuch alteraƟons,repairs, improvementsor addiƟonstothe Premisesas Lessormay deemnecessaryor desirableand the erecƟng,using andmaintaining ofuƟliƟes, services,pipes andconduits throughthePremises and/orother premisesas longasthere isno materialadverse eﬀect toLessee's useofthe Premises. Allsuch acƟviƟesshall bewithout abatementofrent orliability toLessee. In addiƟon, Lessorshall havetheright toretain keystothe Premisesand tounlock alldoorsin or uponthe Premisesother thanto ﬁles, vaultsand safes,and inthecase ofemergency toenterthe Premisesby anyreasonablyappropriate means,and anysuch entry shallnot bedeemed aforcibleor unlawfulentry ordetainer ofthePremises oran evicƟon. Lessee waivesany chargesfordamages orinjuries orinterference with Lessee'sproperty orbusiness in connecƟontherewith.

33. AucƟons. Lessee shallnotconduct, norpermit tobeconducted, any aucƟon uponthe PremiseswithoutLessor's prior wriƩen consent. Lessor shallnot be obligatedto exerciseany standardofreasonableness indetermining whetherto permitan aucƟon.

34. Signs. Lessor mayplaceon thePremises ordinary"ForSale" signsat any Ɵme andordinary"For Lease"signs duringthelast 6months oftheterm hereof. Lessor maynot placeany signonthe exteriorof theBuilding thatcoversany ofthe windowsofthe Premises. Exceptforordinary "ForSublease" signswhich maybeplaced onlyon thePremises, Lesseeshallnot placeany signupon theProjectwithout Lessor'sprior wriƩenconsent. Allsigns mustcomplywith allApplicable Requirements.

Lessee,atLessee’ssolecost,shallhavetherighttoinstallsignageatitsentrancedoor(s),thebuildingdirectoryandonthemonumentat thesoutheastcorneroftheproperty,subjecttoLessor’sapproval.

35. TerminaƟon; Merger. Unless speciﬁcallystated otherwisein wriƟngbyLessor, thevoluntary orother surrenderofthis Leaseby Lessee,themutual terminaƟon or cancellaƟon hereof,or a terminaƟonhereof byLessor forBreach byLessee,shall automaƟcallyterminate anysubleaseor lesserestate inthePremises; provided, however,that Lessormay electto conƟnue anyone orall exisƟngsubtenancies. Lessor'sfailure within10days followingany sucheventto electto thecontrary by wriƩen noƟce tothe holderofany suchlesser interest,shall consƟtuteLessor's elecƟon tohave suchevent consƟtute the terminaƟon ofsuchinterest.

36. Consents. All requestsforconsent shallbe in wriƟng. Exceptas otherwiseprovided herein,whereverin thisLease theconsentof aParty isrequiredto anact by orfor theother Party,suchconsent shallnot beunreasonably withheldordelayed. Lessor's actualreasonablecosts andexpenses (includingbutnot limitedto architects', aƩorneys', engineers'and otherconsultants'fees) incurredin the consideraƟon of,orresponse to,a requestbyLessee forany Lessorconsent,including butnot limitedto consentstoan assignment,a subleƫngor thepresenceor useof aHazardousSubstance, shallbe paidbyLessee uponreceipt ofan invoiceand supporƟng documentaƟon therefor. Lessor'sconsentto anyact, assignmentor subleƫngshallnot consƟtutean acknowledgmentthatno Defaultor BreachbyLessee ofthis Leaseexists, norshallsuch consentbe deemeda waiverofany then exisƟng DefaultorBreach, exceptas maybeotherwise speciﬁcallystated inwriƟng by Lessorat the Ɵme ofsuchconsent. The failureto specifyhereinany parƟcular condiƟon toLessor'sconsent shallnot precludethe imposiƟon byLessor atthe Ɵmeof consentof suchfurther orother condiƟons asare thenreasonable withreferenceto the parƟcular maƩer forwhich consentis beinggiven. Inthe eventthat either Partydisagrees withany determinaƟonmadeby theother hereunderand reasonablyrequeststhe reasonsfor such determinaƟon,the determiningparty shallfurnish itsreasons in wriƟng andinreasonable detailwithin 10business daysfollowingsuch request.

37. Guarantor.

37.1 ExecuƟon. TheGuarantors, ifany, shalleachexecute aguaranty intheform mostrecently publishedbyAIR CRE.

37.2 Default. Itshall consƟtutea Defaultofthe Lesseeif anyGuarantorfails orrefuses, uponrequestto provide: (a)evidence ofthe execuƟon ofthe guaranty, includingthe authorityof thepartysigning onGuarantor's behalfto obligateGuarantor,and inthe caseofa corporateGuarantor, a cerƟﬁedcopy ofa resoluƟonof its boardof directorsauthorizing themakingof suchguaranty, (b)current ﬁnancialstatements,(c) anEstoppel CerƟﬁcate,or(d) wriƩen conﬁrmaƟon thattheguaranty is sƟllin eﬀect.

38. Quiet Possession. Subjecttopayment byLessee oftheRent andperformance ofall ofthecovenants, condiƟonsand provisionsonLessee's partto beobserved andperformed underthis Lease,Lesseeshall havequiet possessionand quietenjoymentof thePremises duringtheterm hereof.

39. OpƟons. If Lesseeisgranted any OpƟon, as deﬁnedbelow, thenthe followingprovisions shallapply.

39.1 DeﬁniƟon. "OpƟon"shall mean: (a)theright toextend orreducethe termof orrenewthis Leaseor toextend orreducethe termof orrenewany lease thatLessee hason otherpropertyof Lessor;(b) theright of ﬁrstrefusal orﬁrst oﬀertolease eitherthe Premisesorother propertyof Lessor;(c) therightto purchase, theright of ﬁrst oﬀertopurchase orthe rightof ﬁrstrefusalto purchasethe Premisesorother propertyof Lessor.

39.2 OpƟons PersonalToOriginal Lessee. Any OpƟongranted toLessee inthisLease ispersonal totheoriginal Lessee,and cannotbe assignedorexercised by anyoneother thansaid originalLesseeand onlywhile theoriginal Lesseeisin fullpossession ofthePremises and,if requestedbyLessor, withLessee cerƟfyingthat Lesseehas no intenƟon of thereaŌerassigning orsubleƫng. 20 39.3 MulƟple OpƟons. In theevent thatLesseehas anymulƟple OpƟons toextend orrenew thisLease,a later OpƟon cannotbe exercisedunlessthe prior OpƟonshave beenvalidly exercised.

39.4 Eﬀect ofDefaulton OpƟons.
(a) Lessee shallhave norightto exercisean OpƟon: (i)duringthe periodcommencing withthegiving ofany noƟceofDefault and conƟnuing unƟl said Defaultis cured,(ii) duringtheperiod of Ɵme anyRent isunpaid(without regardto whetherno Ɵcethereof isgiven Lessee),(iii)during the Ɵme Lesseeis inBreach of thisLease, or(iv) intheevent thatLessee hasbeen given3or more noƟces ofseparateDefault, whetheror nottheDefaults arecured, duringthe 12monthperiod immediatelypreceding theexercise ofthe OpƟon.
(b) Theperiod of Ɵme withinwhichan OpƟonmay beexercisedshall notbe extendedor enlargedbyreason ofLessee's inabilitytoexercise an OpƟon becauseof theprovisions ofParagraph39.4(a).
(c) An OpƟon shallterminate andbeof nofurther forceor eﬀect,notwithstandingLessee's dueand Ɵmelyexerciseof the OpƟon, if, aŌersuch exercise andprior tothe commencementofthe extendedterm or compleƟon ofthepurchase, (i)Lessee failstopay Rentfor aperiodof 30days aŌersuch Rentbecomesdue (withoutany necessityof Lessortogive noƟcethereof), or(ii) ifLesseecommits aBreach ofthisLease.

40. Security Measures. Lesseeherebyacknowledges thatthe Rentpayableto Lessorhereunder doesnot includethecost ofguard serviceorother security measures,and thatLessor shallhaveno obligaƟonwhatsoever toprovide same. Lessee assumesall responsibility fortheprotecƟonof thePremises,Lessee, its agentsand inviteesand theirpropertyfrom theacts ofthird parƟes. In theevent, however,thatLessor shouldelect toprovidesecurity services,then thecost thereof shallbe an OperaƟng Expense.

41. ReservaƟons.
(a) Lessor reservesthe right:(i)to grant,without theconsent orjoinderof Lessee,such easements,rightsand dedicaƟonsthat Lessordeemsnecessary, (ii)to causethe recordaƟonofparcel mapsand restricƟons,(iii) tocreateand/or installnew uƟlityraceways,so longas sucheasements,rights, dedicaƟons,maps, restricƟons,and uƟlityraceways donotunreasonably interferewith theuse ofthePremises byLessee. Lessormay also:change thename,address or Ɵtle ofthe Buildingor Projectupon atleast90 daysprior wriƩen noƟce; provideandinstall, atLessee's expense,Buildingstandard graphicson thedoorof thePremises andsuch porƟonsof theCommon AreasasLessor shallreasonably deemappropriate; granttoany lesseethe exclusiverightto conductany businessaslong assuch exclusive rightdoes not conﬂict withanyrights expresslygiven herein;and toplacesuch signs, noƟces ordisplaysas Lessorreasonably deemsnecessaryor advisableupon the roof,exterior ofthe Buildingorthe Projector onpole signsinthe CommonAreas. Lesseeagrees tosign anydocumentsreasonably requestedby Lessorto eﬀectuate suchrights. The obstrucƟonofLessee's view,air, orlight byanystructure erectedin thevicinityof theBuilding, whetherbyLessor orthird parƟes,shall innoway aﬀectthis Leaseor imposeanyliability uponLessor.
(b) Lessoralso reservestheright tomove Lesseeto otherspaceof comparablesize intheBuilding orProject. Lessormust provideat least45 daysprior wriƩen noƟce ofsuch move,andthe newspace mustcontain improvementsofcomparable qualityto thosecontainedwithin thePremises. Lessorshall paythe reasonableout ofpocket coststhatLessee incurswith regardto such relocaƟon,including theexpenses ofmovingand necessary staƟonary revisioncosts. Inno event,however, shallLessor berequiredto payan amountin excessoftwo monthsBase Rent. Lessee maynot berelocatedmore thanonce duringthe termofthis Lease.
(c) Lesseeshall not: (i)usea representaƟon(photographic orotherwise) oftheBuilding orProject ortheirname(s) in connecƟon withLessee'sbusiness; or(ii) suﬀeror permitanyone,except inemergency, togo upontheroof ofthe Building.

42. Performance UnderProtest. Ifat any Ɵme adisputeshall ariseas toany amountorsum ofmoney tobepaid byone Partytothe otherunder theprovisions hereof,the Partyagainst whomthe obligaƟon topay themoney isassertedshall havethe righttomake payment"under protest"andsuch paymentshall notbe regardedas avoluntary paymentandthere shallsurvive theright onthepart ofsaid Partyto insƟtute suitfor recoveryofsuch sum. Ifit shallbeadjudged thatthere wasno legal obligaƟon onthepart ofsaid Partyto paysuchsum orany partthereof,said Partyshall be enƟtledto recoversuch sumor somuchthereof asit wasnot legallyrequired topay. AParty whodoes not iniƟate suitforthe recoveryof sumspaid"under protest"within 6monthsshall bedeemed tohave waiveditsright to protestsuch payment.

43. Authority; MulƟple ParƟes; ExecuƟon.
(a) If eitherParty heretoisa corporaƟon,trust, limitedliability company,partnership,or similar enƟty,eachindividual execuƟng thisLease onbehalfof such enƟty representsand warrantsthathe orshe isduly authorizedtoexecute anddeliver thisLeaseon itsbehalf. EachParty shall,within 30days aŌerrequest, deliverto theother Party saƟsfactoryevidence ofsuch authority. (b) Ifthis Leaseis executedbymore thanone personor enƟty as"Lessee", eachsuch personore nƟty shallbe jointlyandseverally liablehereunder. Itis agreedthat anyone ofthenamed Lesseesshall beempowered toexecuteany amendmentto thisLease,or otherdocument ancillarytheretoand bindall ofthe namedLessees, andLessor mayrelyon thesame asif allofthe namedLessees hadexecutedsuch document. (c) ThisLease maybe executedbythe ParƟesin counterparts,each ofwhichshall bedeemed anoriginaland allof whichtogethershall consƟtuteone andthe sameinstrument.

44. Conﬂict. Any conﬂictbetweenthe printedprovisions ofthisLease andthe typewriƩenor handwriƩenprovisionsshall becontrolled bythe typewriƩen or handwriƩenprovisions.

45. Oﬀer. PreparaƟon ofthisLease byeither partyortheir agentand submissionof sametothe otherParty shallnotbe deemedan oﬀertolease tothe other Party. ThisLease isnotintended tobe binding unƟl executedanddelivered byall ParƟeshereto.

46. Amendments. This Leasemaybe modiﬁedonly inwriƟng,signed bythe ParƟesin interestatthe Ɵmeof themodiﬁcaƟon. Aslong astheydo notmaterially changeLessee's obligaƟonshereunder, Lesseeagreesto makesuch reasonablenon-monetary modiﬁcaƟonstothis Leaseas maybereasonably requiredby aLender in connecƟon withthe obtainingofnormal ﬁnancingor reﬁnancingof thePremises.

47. Waiver ofJury Trial. THE PARTIESHEREBY WAIVETHEIRRESPECTIVE RIGHTSTO TRIALBY JURYINANY ACTIONOR PROCEEDINGINVOLVINGTHE PROPERTY ORARISING OUTOF THISAGREEMENT.

48. ArbitraƟon ofDisputes. AnAddendum requiringthe ArbitraƟonofall disputesbetween thePar Ɵes and/orBrokersarising outof thisLease is isnot aƩachedto thisLease.

49. Accessibility; Americanswith DisabiliƟesAct.
(a) The Premises:
21 have notundergone aninspecƟonby aCerƟﬁed AccessSpecialist (CASp). Note: ACerƟﬁed AccessSpecialist(CASp) caninspect thesubjectpremises and determinewhether thesubject premisescomplywith allof theapplicable construcƟon-relatedaccessibilitystandards understate law.Althoughstate lawdoes not requirea CASp inspecƟon ofthesubject premises,the commercialproperty ownerorlessor maynot prohibitthelessee ortenant fromobtaininga CASp inspecƟon of thesubject premisesfor theoccupancyor potenƟaloccupancy ofthe lesseeortenant, ifrequested bythelessee ortenant. The parƟesshall mutuallyagree onthe arrangementsfor the Ɵme andmannerof theCASp inspecƟon,the paymentofthe feefor theCASpin specƟon, andthe costofmaking anyrepairs necessaryto correct violaƟons of construcƟon-related accessibilitystandardswithin thepremises. have undergonean inspecƟonbya CerƟﬁedAccess Specialist(CASp) anditwas determinedthat thePremisesmet allapplicable construcƟon-related accessibilitystandards pursuantto CaliforniaCivilCode §55.51et seq. Lesseeacknowledgesthat itreceived acopyof the inspecƟon reportatleast 48hours priorto execuƟngthis Leaseand agreestokeep suchreport conﬁdenƟal. haveundergone an inspecƟon bya CerƟﬁed AccessSpecialist (CASp)and itwasdetermined thatthe Premisesdidnot meetall applicable construcƟon-related accessibilitystandards pursuantto CaliforniaCivilCode §55.51et seq. Lesseeacknowledgesthat itreceived acopyof the inspecƟon reportatleast 48hours priorto execuƟngthis Leaseand agreestokeep suchreport conﬁdenƟalexcept asnecessaryto completerepairs and correcƟonsof violaƟonsof construcƟonrelated accessibilitystandards.

Inthe eventthat thePremiseshave beenissued an inspecƟon reportbya CASpthe Lessorshallprovide acopy ofthedisability access inspecƟon cerƟﬁcate to Lessee within7 daysof the execuƟonof thisLease.
(b) Sincecompliance withthe Americanswith DisabiliƟes Act(ADA) andother stateand localaccessibility statutesaredependent uponLessee's speciﬁc useof thePremises, Lessormakesno warrantyor representaƟonas towhetheror notthe Premisescomplywith ADAor anysimilar legislaƟon. In theevent that Lessee'suse ofthe Premisesrequires modiﬁcaƟons or addiƟons tothe Premisesinorder tobe incompliancewith ADAor otheraccessibilitystatutes, Lesseeagrees to makeany suchnecessary modiﬁcaƟonsand/or addiƟons atLessee's expense.

LESSORAND LESSEEHAVE CAREFULLYREADAND REVIEWEDTHIS LEASEAND EACHTERMAND PROVISIONCONTAINED HEREIN,ANDBY THEEXECUTION OFTHIS LEASESHOW THEIRINFORMED ANDVOLUNTARYCONSENT THERETO. THEPARTIES HEREBYAGREETHAT, ATTHE TIMETHISLEASE ISEXECUTED, THETERMSOF THISLEASE ARECOMMERCIALLY REASONABLEANDEFFECTUATE THEINTENT ANDPURPOSE OFLESSORAND LESSEEWITH RESPECTTOTHE PREMISES.

ATTENTION: NOREPRESENTATION ORRECOMMENDATIONIS MADEBY AIRCRE ORBYANY BROKERAS TOTHELEGAL SUFFICIENCY,LEGAL EFFECT,ORTAX CONSEQUENCESOF THISLEASE ORTHETRANSACTION TOWHICH ITRELATES. THEPARTIES AREURGED TO:

1. SEEKADVICE OFCOUNSELAS TOTHE LEGALANDTAX CONSEQUENCESOF THISLEASE.

2. RETAINAPPROPRIATE CONSULTANTSTOREVIEW ANDINVESTIGATE THECONDITIONOF THEPREMISES. SAID INVESTIGATIONSHOULDINCLUDE BUTNOT BE LIMITEDTO: THEPOSSIBLE PRESENCEOFHAZARDOUS SUBSTANCES,THE ZONINGAND SIZEOFTHE PREMISES,THE STRUCTURALINTEGRITY,THE CONDITIONOF

THEROOF ANDOPERATING SYSTEMS,COMPLIANCEWITH THEAMERICANS WITHDISABILITIES ACTANDTHE SUITABILITYOF THEPREMISESFOR LESSEE'S INTENDEDUSE.

WARNING: IFTHE PREMISESARELOCATED INA STATEOTHER THANCALIFORNIA,CERTAIN PROVISIONSOF THELEASEMAY NEEDTO BEREVISEDTO COMPLYWITH THELAWS OFTHE STATEINWHICH THEPREMISES ARELOCATED.

The parƟes heretohave executedthisLease atthe placeand onthedates speciﬁedabove theirrespecƟvesignatures.

Executedat:

On:

ByLESSOR:
6500 Hollister LLC
By:

NamePrinted: Alicia Carnevali
Title: Manager
Phone:

Fax:

Email:

By:

NamePrinted:

Title:

Phone:

Fax:

Email:

Address:

FederalID No.:

Executedat:

On:

ByLESSEE:

City of Goleta
By:

NamePrinted:

Title:

Phone:

Fax:

Email:

By:

NamePrinted:

Title:

Phone:

Fax:

Email:

Address:

FederalID No.:
22 BROKER
Hayes Commercial Group, Inc.

AƩn: Francois DeJohn; Dylan Ward
Title: Partner; Partner
Address: 222 E Carrillo St., Ste. 101, Santa
Barbara, CA 93101
Phone: 805-898-4365
Fax:

Email: [email protected];
[email protected]
FederalID No.: 90-1141127
BrokerDRE License#: 02017017
AgentDRE License#: 01144570; 01472452
BROKER
Hayes Commercial Group, Inc.

AƩn: Francois DeJohn
Title: Partner
Address: 222 E Carrillo St., Ste. 101, Santa
Barbara, CA 93101
Phone: 805-898-4392
Fax:

Email: [email protected]
FederalID No.: 90-1141127
BrokerDRE License#: 02017017
AgentDRE License#: 01144570
AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 23 RENTADJUSTMENT(S)
(ORIGINALTERM)

STANDARDLEASE ADDENDUM
Dated: February 1, 2025
ByandBetween
Lessor: 6500 Hollister LLC
Lessee: City of Goleta
PropertyAddress: 6500 Hollister Ave., Suite 105, Goleta, CA 93117 (streetaddress, city,state, zip)
Paragraph: 50
Themonthly BaseRent duringtheOriginal Termof theLease shallbeincreased byusing themethod(s)selected below(check method(s)tobe usedand ﬁllin appropriately):

I. Consumer PriceIndex.
a. The monthlyBaseRent shallbe increasedon and every months thereaŌer duringtheOriginal Term(" CPI Increase Date(s)")commensurate withthe increaseinthe CPI(as herein deﬁned) determinedasfollows: the monthlyBaseRent scheduledfor the ﬁrstmonth ofthe Original Termshall bemulƟplied bya fracƟon thedenominator ofwhich istheBase CPI(as herein deﬁned),and thenumerator ofwhichis theComparison CPI(as herein deﬁned). Theamount socalculatedshall consƟtutethe newBase RentunƟlthe nextCPI IncreaseDate,but inno eventshallany suchnew BaseRent belessthan the BaseRent forthe monthimmediatelypreceding theapplicable CPIIncrease Date. b. Theterm " CPI"shallmean theConsumer PriceIndexof theBureau ofLabor StaƟsƟcs ofthe U.S.Department ofLaborfor (selectone ): CPIW (UrbanWage Earnersand ClericalWorkers)or CPI U(AllUrban Consumers),for (ﬁll inUrban Area): or theareain whichthe Premisesis located,All Items(1982-1984 =100). Theterm "ComparisonCPI " shallmeanthe CPIof thecalendarmonth whichis 2fullmonths priorto theapplicable Original TermCPI IncreaseDate. Theterm "BaseCPI" shallmean theCPIof thecalendar monthwhichis 2full monthspriorto theCommencement Dateof theOriginalTerm. c. Ifthe compilaƟonand/or publicaƟon ofthe CPIistransferred toanother governmentaldepartment,bureau oragency oris disconƟnued,theninstead theindex mostnearly thesameas theCPI shallbe usedtocalculate theBase Rentincreaseshereunder. If the ParƟescannot agreeon suchalternaƟve index,thenthe maƩershall besubmiƩed fordecisionto theAmerican ArbitraƟon AssociaƟon inaccordancewith thethen rulesofsaid associaƟonand thedecisionof thearbitrators shallbe bindingupon the parƟes,with thecost ofsuch arbitraƟonbeingpaid equallyby the ParƟes.

II. Fixed Percentage. ThemonthlyBase Rentshall beincreasedon andevery months thereaŌerduring theOriginalTerm ("PercentageIncrease Date(s)")by percent ( %) ofthemonthly BaseRent scheduledtobe paidfor themonthimmediately precedingthe applicablePercentage IncreaseDate.

III. FixedRentalAdjustment(s) ("FRA").

Themonthly BaseRent shallbeincreased tothe followingamounts onthedates setforth below:

On (ﬁll inFRA AdjustmentDate(s)): Thenew BaseRent shallbe:

April 1, 2026 $6,341.16
BROKER'SFEE: For eachadjustmentin BaseRent speciﬁedabove, theBrokersshall bepaid aBrokerageFee inaccordance withparagraph15 ofthe Leaseor if applicable,paragraph 9of theSublease.

AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] 24 NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 25 OPTION(S)TOEXTEND TERM

STANDARDLEASEADDENDUM
Dated: February 1, 2025
ByandBetween
Lessor: 6500 Hollister LLC
Lessee: City of Goleta
PropertyAddress: 6500 Hollister Ave., Suite 105, Goleta, CA 93117 (streetaddress, city,state, zip)
Paragraph: 51 OPTION(S) TOEXTEND TERM.Subject tothe terms,condiƟons andprovisionsof Paragraph39, LessorgrantsLessee four (4) opƟon(s)to extendthe termofthe Lease("Extension OpƟon(s)"),with eachExtension OpƟon beingfor atermof six (6) months,commencing whenthe priorterm expires(" OpƟon Term(s)"). In orderto exercisean ExtensionOpƟon,Lessee mustgive wriƩen noƟceof suchelecƟon toLessorand Lessormust receive such noƟce atleast six (3) but notmorethan monthspriorto thedate thattheapplicable OpƟonTerm wouldcommence, Ɵme beingof the essence. If Ɵmely andproper noƟﬁcaƟon ofthe exerciseof anExtension OpƟon isnot givenbyLessee and/orreceived byLessor,such Extension OpƟon shall automaƟcallyexpire. Except asspeciﬁcally modiﬁed, theterms, condiƟonsand provisionsofthe Leaseshall applyduring OpƟon Termsbut theamountof Rentduring OpƟonTerms shallbe establishedbyusing themethod(s) selectedbelow (checkmethod(s)to beused and ﬁllin appropriately):

I. Consumer PriceIndex.
(a) Duringthe OpƟonTerm(s) whichstart(s) on ,the monthlyBaseRent shallbe increasedon and every months thereaŌerduring suchOpƟon Term(s)(" OpƟonTerm CPIIncrease Date(s)")commensurate withtheincrease inthe OpƟonTermCPI (asherein deﬁned)determinedas follows: themonthly BaseRentscheduled forthe monthimmediately precedingthe ﬁrst occurringOp Ɵon TermCPIIncrease Dateshall be mulƟpliedby afracƟon the denominatorof whichis the OpƟonTerm BaseCPI (asherein deﬁned),andthe numeratorof whichisthe OpƟonTerm ComparisonCPI(as herein deﬁned). The amountso calculatedshall consƟtutethenew BaseRent unƟlthe nextOpƟonTerm CPIIncrease Dateduringthe applicable OpƟon Term,butin noevent shallany suchnew BaseRent belessthan theBase Rentfor themonthimmediately precedingthe applicable OpƟonTerm CPIIncrease Date. (b) Theterm" OpƟon TermCPI" shallmeanthe ConsumerPrice Indexofthe Bureauof Labor StaƟsƟcs oftheU.S. Departmentof Laborfor (select one):

CPIW (UrbanWage EarnersandClerical Workers)or CPIU(All UrbanConsumers), for(ﬁll in UrbanArea): or thearea inwhich thePremises is located,All Items(1982-1984 =100). Theterm " OpƟonTerm ComparisonCPI"shall meanthe CPIofthe calendarmonth whichis2 fullmonths priorto theapplicable OpƟonTerm CPIIncrease Date. The term"OpƟon TermBase CPI"shallmean theCPI ofthecalendar monthwhich is2full monthsprior to(select one ):

CommencementDate ofthe OriginalTerm, start ofthe applicable OpƟonTerm, or (ﬁll in month) . (c) If compilaƟon and/or publicaƟon oftheCPI istransferred toanothergovernmental department,bureau oragencyor is disconƟnued, theninstead the indexmost nearlythe sameasthe CPIshall beused tocalculatethe BaseRent increaseshereunder. Ifthe ParƟescannotagree onsuch alternaƟveindex, thenthe maƩershall besubmiƩed fordecisionto theAmerican ArbitraƟon AssociaƟon inaccordancewith thethen rulesofsaid associaƟonand thedecisionof thearbitrators shallbe bindingupon the parƟes,with thecost ofsuch arbitraƟonbeingpaid equallyby the ParƟes.

II. Fixed Percentage. Duringthe OpƟon Term(s)which start(s)on , themonthly BaseRentshall beincreased on andevery months thereaŌerduring suchOpƟon Term(s)(" OpƟonTerm PercentageIncrease Date(s)")by percent ( %)of themonthly BaseRent scheduledto bepaidfor themonth immediatelypreceding theapplicable OpƟon TermPercentage IncreaseDate.

III. FairMarket Value.
(a) Duringthe OpƟonTerm(s) whichstart(s) on ,the amountofRent shallbe theamountforecasted tobe thefair marketrentalvalue ofthe Premisesduring such OpƟon Termestablishedpursuant tothe procedures,terms, assumpƟonsandco ndiƟons setforth herein("FairMarket Value");provided, however,regardless ofsuch FairMarketValue, BaseRent duringan OpƟonTermshall notbe lessthanthe BaseRent scheduledasof whenthe priorterm expires .

StarƟngas ofLessee's exerciseofthe applicableExtension OpƟon(but notearlierthan six(6) monthsbeforestart ofthe applicable OpƟonTerm), theParƟes shallfor thirty(30) days(" NegoƟaƟon Period") aƩemptto agreeupon theFair MarketValue. Ifduring theNegoƟaƟonPeriod theParƟes donotagree onthe FairMarket Value,then theFair MarketValueshall beestablished pursuantto theproceduresset forthherein, whichshallbe binding. (b) EachPartyshall, within ﬁŌeen (15)days aŌertheend ofthe NegoƟaƟonPeriod,in wriƟngsubmit totheother Partysuch Party's determinaƟon oftheFair MarketValue ("SubmiƩedValue(s)"). Ifa Partyfails to Ɵmely providea SubmiƩed Value,then theotherParty's SubmiƩedValue shallbethe FairMarket Value. If both ParƟes Ɵmely provide SubmiƩedValues,then eachParty shall,within ﬁŌeen(15)days aŌerboth ParƟeshaveexchanged SubmiƩedValues, inwriƟng noƟfy the otherParty ofsuch Party'sselectedvaluator whoshall meetthe qualiﬁcaƟonssetforth herein("Advocate Valuator(s)"). Lessor andLessee mayselectan Advocate Valuatorwho isfavorable tosuchParty's posiƟonand may,prior tooraŌer appointmentof anAdvocateValuator, consultwith suchParty'sAdvocate Valuator. Ifa Partyfails to Ɵmely andproperlyprovide noƟceof suchParty's chosenAdvocateValuator, thenthe otherParty's SubmiƩed Valueshall betheFair MarketValue. (c) Ifboth ParƟes Ɵmely andproperlydesignate AdvocateValuators, thensuchAdvocate Valuatorsshall, within ﬁŌeen(15) daysaŌer their selecƟon, choosea third(3rd) neutralvaluator whoshallmeet the qualiﬁcaƟons setforth herein("NeutralValuator"). The NeutralValuatorshall beengaged jointlybyLessor andLessee.

IfAdvocate Valuatorsfail toagreeupon and Ɵmely appointa NeutralValuator,then thePresident ofAIRCRE shallappoint suchNeutralValuator within ﬁŌeen (15) days aŌer requestby eitherParty. Ifthe Presidentof AIRCREdoes not Ɵmely appointtheNeutral Valuator,then eitherPartymay ﬁlean appropriatelegal acƟonfora 26 judgewith competent jurisdicƟon overthe ParƟes toappoint theNeutral Valuator. (d) TheAdvocateValuators andthe NeutralValuator ("Valuator(s)")shallbe dulylicensed realestatebrokers orsalespersons ingoodstanding inthe statein whichthe Premisesis located,shallhave been acƟve overthe ﬁve(5)year periodbefore theirappointmentin theleasing of properƟessimilar tothe Premiseswithin thegeneral realestate marketofthe Premises. TheNeutral Valuatorshall addiƟonally notbe relatedtoor aﬃliatedwith eitherPartyor AdvocateValuator, andshall nothave previouslyrepresented inareal estate transacƟon aParty oranyonerelated toor aﬃliatedwitha Party. All maƩersto bedetermined bythe Valuatorsshall bedecided bya majorityvoteof theValuators, witheach Valuatorhavingone (1)vote. TheValuators may,as theValuatorsdetermine, holdhearings andrequire briefs,including marketdata and addiƟonal informaƟon.
(e) Withinthirty (30)days aŌer selecƟonof theNeutral Valuator,the Valuatorsshallﬁrst determinethe FairMarketValue establishedby takingintoaccount theterms, assumpƟons and condiƟonssetforth herein("Valuators' MarketValue"), thendecidewhich Party's SubmiƩed Valueiscloser inmonetary amounttothe Valuators'Market Value("Selected MarketValue"),then providethe ParƟesa copyofthe Valuators'Market Valueand ﬁnally noƟfy the ParƟesofthe SelectedMarket Value. TheSelected MarketValueshall bethe FairMarket Value. The Valuatorsshall havenoright todecide aSelectedMarket Valuewhich isa compromiseto(or modiﬁcaƟonof) theSubmiƩed Values. The decisionof theValuators shallbebinding uponthe ParƟes. The Partywhose SubmiƩedValueis notthe SelectedMarket Valueshall, withinten (10)days aŌer theValuators decidethe SelectedMarketValue, paythe feesandcosts ofall three(3)Valuators. (f) Ifthe FairMarketValue hasnot beenestablished beforethestart ofthe applicable OpƟonTerm, thenLessee shallconƟnueto payto Lessorrent inthe amountpayable forthe monthimmediatelypreceding thestart ofsuch OpƟonTermand Lessor'sacceptance ofsuchrent shallnot waive,adversely aﬀect orprejudice the ParƟes' rightto completeestablishmentof theFair MarketValue orLessor'sright tocollect thefullamount ofthe FairMarketValue oncethe FairMarket Valueis established. Lesseeshall, withinten(10) days aŌer establishmentof theFairMarket Value,pay toLessorany deﬁciencyin rentthendue forthe OpƟonTerm.

Followingestablishment ofFair MarketValue,the ParƟesshall, withinten (10)days aŌer requestby eitherParty,sign anamendment tothisLease to conﬁrm theFair MarketValue andthe expiraƟondateof thisLease, butthe ParƟes'failureto requestor tosignsuch anamendment shallnot aﬀect establishmentof theFair Market Valueor extensionof theLeaseterm.
(g) The Valuators,indeciding theValuators' MarketValue, shalltakeinto accountrent rates,rentabatements, periodicrent increases,realproperty taxes, insurancepremiums andother operaƟngexpenses,tenant improvementand otherapplicable allowances,buildingservices, lengthof leasetermand otherfactors professionalreal estatebrokers and/orappraiserscustomarily considerin determiningfair marketrentof propertyin anarm'slength transacƟonby ready,willingand able parƟes forspace ofcomparable locaƟon, size,age, condiƟon,quality, parking,visibility,view, signageand accessibilityifthe Premiseswere marketedina normal andcustomary mannerfor areasonablelength of Ɵme onthe openmarketto beleased toatenant with ﬁnancial strengthandcredit worthinesscomparable to Lesseeand guarantors(if any)ofthis Lease(as ofLessee's exerciseofthe Extension OpƟon) foraterm comparableto thelengthof theapplicable OpƟonTerm and usedfor theAgreed Use(orother reasonablycomparable uses). TheValuators,in decidingthe Valuators'MarketValue, shallnot considerasa comparable transacƟonany ofthe following: a sublease,lease assignment,lease renewalorextension; leasewith atenantthat hasequity, isrelatedto or aﬃliated withthe landlord;or alease ofspacethat wassubject toa rightof ﬁrst refusal,right of ﬁrst oﬀer ,expansion opƟon orotherencumbrances. The Valuators,in decidingthe Valuators'Market Value,shall reducetheFair MarketValue onaccount of AlteraƟonsand improvementsmade byLesseeto theextent thecostthereof waspaid solely
byLessee (inexcess ofanyapplicable improvementallowance, abatedrent inlieuof improvementallowance orother consideraƟon providedby LessorforLessee's improvementof thePremises), shallnotreduce theFair MarketValue onaccountof anyreal estatebrokeragecommission savingsby Lessor,andshall notreduce the FairMarket Valueon accountofdeferred maintenanceor repairof thePremisesfor whichLessee wasresponsibleunder theLease butdidnot perform .

IV. FixedRental Adjustment(s)("FRA") .

Themonthly BaseRent shallbeincreased tothe followingamounts onthedates setforth below:

On (ﬁll inFRA AdjustmentDate(s)): Thenew BaseRent shallbe:

Option 1
April 1, 2027 $6,531.40
Option 2
October 1, 2027 $6,531.40
Option 3
April 1, 2028 $6,727.34
Option 4
October 1, 2028 $6,727.34
V. ConƟnuaƟonof OriginalTermAdjustments.

Themonthly BaseRent duringthe OpƟon Term(s)which start(s)on shall beincreased inaccordancewith thesame formulaprovidedin theLease tobe usedto calculateincreases intheBase Rentduring theOriginal Termofthe Lease.

BROKER'SFEE: For eachadjustmentin BaseRent speciﬁedabove, theBrokersshall bepaid aBrokerageFee inaccordance withparagraph15 ofthe Leaseor if applicable,paragraph 9of theSublease.

AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 27 RULESANDREGULATIONS FOR

STANDARDOFFICE LEASE
Date: January 30, 2025
ByandBetween
Lessor: 6500 Hollister LLC
Lessee: City of Goleta
PropertyAddress: 6500 Hollister Ave., Suite 105, Goleta, CA 93117 (streetaddress, city,state, zip)

GENERALRULES

1. Lesseeshall not suﬀer orpermitthe obstrucƟonof anyCommonAreas, includingdriveways, walkwaysandstairways.

2. Lessorreserves theright torefuseaccess toany personsLessorin goodfaith judgestobe athreat tothe safetyand reputaƟon ofthe Projectandits occupants.

3. Lesseeshall notmake orpermitany noiseor odorsthatannoy orinterfere withotherlessees orpersons havingbusiness withintheProject.

4. Lesseeshall notkeep animalsorbirds withinthe Project,andshall notbring bicycles,motorcyclesor othervehicles intoareas notdesignatedas authorizedfor same.

5. Lesseeshall notmake, suﬀerorpermit liƩerexcept inappropriatereceptacles forthat purpose.

6. Lesseeshall notalter anylockor installnew or addiƟonallocks orbolts.

7. Lesseeshall beresponsiblefor theinappropriate useof anytoiletrooms, plumbingor other uƟliƟes. Noforeign substancesofany kindare tobeinserted therein.

8. Lesseeshall notdeface thewalls, parƟƟons orother surfacesofthe Premisesor Project.

9. Lesseeshall not suﬀer orpermitanything inor aroundthePremises orBuilding thatcausesexcessive vibraƟonor ﬂoorloading inanypart ofthe Project.

10. Furniture, signiﬁcantfreight andequipment shallbemoved intoor outofthe buildingonly withtheLessor's knowledgeand consent,and subjecttosuch reasonable limitaƟons, techniquesand Ɵming,asmay bedesignated byLessor. Lesseeshall beresponsible foranydamage tothe OﬃceBuildingProject arisingfrom anysuch acƟvity.

11. Lessee shallnot employany serviceorcontractor forservices orworkto beperformed intheBuilding, exceptas approvedby Lessor.

12. Lessor reservesthe rightto closeandlock theBuilding onSaturdays, Sundaysand BuildingHolidays, andon otherdays betweenthehours of 6:00 P.M.and 8:00 A.M. ofthefollowing day. IfLessee usesthePremises duringsuch periods,Lesseeshall beresponsible forsecurelylocking anydoors itmay haveopened forentry. Lesseeshallhavetwenty-fourhouraccess,sevendaysaweek .

13. Lessee shallreturn allkeys atthe terminaƟon ofits tenancyandshall beresponsible forthecost ofreplacing anykeys thatarelost.

14. No windowcoverings, shadesor awningsshallbe installedor usedbyLessee.

15. No Lessee,employee orinvitee shallgoupon theroof oftheBuilding.

16. Lessee shallnot suﬀeror permitsmokingor carryingof lightedcigarsor cigareƩesin areasreasonablydesignated byLessor orby applicablegovernmental agenciesas non-smokingareas.

17. Lessee shallnot useany methodof heaƟng orair condiƟoningotherthan asprovided byLessor.

18. Lessee shallnot install,maintain oroperateany vendingmachines uponthePremises withoutLessor's wriƩenconsent.

19. The Premisesshall notbe usedforlodging ormanufacturing, commercialcookingorfoodprepar aƟon.

20. Lessee shallcomply withall safety, ﬁre protecƟon and evacuaƟon regulaƟons establishedby Lessoror anyapplicablegovernmental agency.

21. Lessor reservesthe rightto waiveanyone ofthese rulesor regulaƟons, and/oras toanypar Ɵcular Lessee,and anysuch waivershallnot consƟtutea waiverof anyother ruleor regulaƟonorany subsequent applicaƟon thereofto suchLessee.

22. Lessee assumesall risksfrom theŌorvandalism andagrees tokeepits Premiseslocked asmaybe required.

23. Lessor reservesthe rightto makesuchother reasonablerules and regulaƟonsas itmay fromƟmeto Ɵmedeem necessaryfor theappropriate operaƟon and safetyof theProject anditsoccupants. Lessee agreesto abidebythese andsuch rulesand regulaƟons.

PARKINGRULES

1. Parkingareas shallbe usedonlyfor parkingby vehiclesnolonger thanfull size,passengerautomobiles hereincalled "PermiƩedSize Vehicles."Vehiclesother than PermiƩed SizeVehicles arehereinreferred toas "OversizedVehicles."

2. Lessee shallnot permitorallow anyvehicles thatbelongto orare controlledbyLessee orLessee's employees,suppliers, shippers,customers,or inviteesto be loaded,unloaded, orparked inareasother thanthose designatedby Lessorforsuch acƟviƟes.

3. Parking sƟckers or idenƟﬁcaƟon devicesshallbe theproperty ofLessorand bereturned toLessorby theholder thereofupon terminaƟonofthe holder'sparking privileges. Lesseewill paysuchreplacement chargeas isreasonably establishedbyLessor forthe lossofsuch devices.

4. Lessorreserves theright torefusethe saleof monthly idenƟﬁcaƟondevices toany personor enƟty thatwillfully refusesto complywiththe applicablerules, regulaƟons,laws and/oragreements.

5. Lessorreserves theright torelocateall ora partofparking spacesfrom ﬂoorto ﬂoor,withinone ﬂoor ,and/or toreasonablyadjacent oﬀsite locaƟon(s), andto reasonablyallocate thembetween compactandstandard sizespaces, aslong asthesame complieswith applicablelaws,ordinances and regulaƟons.

6. Usersof theparking areawillobey allposted signsandpark onlyin theareasdesignated forvehicle parking.

7. Unlessotherwise instructed,every personusingthe parkingarea isrequiredto parkand lockhisown vehicle. Lessorwill notberesponsible forany damageto vehicles,injury topersons orlossof property,all ofwhich risksareassumed bythe partyusingthe parkingarea.

8. ValidaƟon,if established,will bepermissibleonly bysuch methodormethods asLessor and/oritslicensee mayestablish atrates generallyapplicableto visitor 28 parking.

9. Themaintenance, washing,waxing orcleaningof vehiclesin theparkingstructure orCommon Areasisprohibited.

10. Lessee shallbe responsiblefor seeingthatall ofits employees,agentsand inviteescomply withtheapplicable parkingrules, regulaƟons,laws andagreements.

11. Lessorreserves theright tomodifythese rulesand/or adoptsuchother reasonableand non-discriminatoryrulesand regulaƟonsas itmay deemnecessaryfor theproper operaƟonof theparkingarea.

12. Suchparking useas ishereinprovided isintended merelyasa licenseonly andnobailment isintended orshall becreatedhereby.

AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 29 DISCLOSUREREGARDINGREALESTATEAGENCY RELATIONSHIP
(Asrequired bythe CivilCode)
Whenyou enterinto adiscussionwith areal estateagent regardingareal estate transacƟon, youshouldfrom theoutset understandwhattype of agency relaƟonship or representaƟon youwish tohavewith theagent inthe transacƟon.

SELLER'SAGENT
ASeller's agentunder a lisƟngagreement withthe Selleracts astheagent forthe Selleronly. ASeller's agentora subagentof thatagent hasthefollowing aﬃrmaƟve obligaƟons:

Tothe Seller:A ﬁduciarydutyof utmostcare, integrity,honesty andloyaltyin dealingswith theSeller.

Tothe Buyerand theSeller:
(a) Diligent exerciseof reasonableskilland carein performanceof theagent's duƟes. (b) Aduty ofhonest andfairdealing andgood faith.
(c) Aduty todisclose allfactsknown tothe agentmaterially aﬀecƟngthevalue ordesirability oftheproperty thatare notknownto, orwithin thediligent aƩenƟon and observaƟon of,the parƟes.

Anagent isnot obligatedtoreveal toeither partyany conﬁdenƟal informaƟonobtained fromthe otherpartythat doesnot involvethe aﬃrmaƟve duƟes set forthabove.

BUYER'SAGENT
ABuyer's agentcan, withaBuyer's consent,agree toact asagentfor theBuyer only. In thesesituaƟons, theagentis notthe Seller'sagent, evenifby agreementthe agentmay receive compensaƟon forservicesrendered, eitherin fullor inpartfrom theSeller. Anagent acƟngonly foraBuyer hasthe following aﬃrmaƟve obligaƟons:

Tothe Buyer:A ﬁduciarydutyof utmostcare, integrity,honesty andloyaltyin dealingswith theBuyer.

Anagent isnot obligatedtoreveal toeither partyany conﬁdenƟal informaƟonobtained fromthe otherpartythat doesnot involvethe aﬃrmaƟve duƟes set forth above.

AGENTREPRESENTING BOTHSELLER ANDBUYER
Areal estateagent, either acƟngdirectly orthrough oneor moresalespersonand brokerassociates, canlegallybe theagent ofboththe Sellerand theBuyer in a transacƟon,but onlywith theknowledgeand consentof boththe Sellerandthe Buyer.

Ina dualagency situaƟon,theagent hasthe following aﬃrmaƟve obligaƟons toboth theSeller andtheBuyer:
(a) A ﬁduciaryduty ofutmostcare, integrity,honesty andloyalty inthedealings witheither theSelleror theBuyer. (b) Other duƟes tothe Sellerandthe Buyeras statedabovein their respecƟve secƟons.

In represenƟng bothSeller andBuyer,a dualagent maynot, withouttheexpress permissionof the respecƟveparty, discloseto theotherparty conﬁdenƟal informaƟon,including, butnot limitedto,facts relaƟngto eitherthe Buyer'sorSeller's ﬁnancial posiƟon, moƟvaƟons, bargaining posiƟon, orother personal informaƟonthat mayimpact price,includingthe Seller'swillingness toaccept apriceless thanthe lisƟngpriceor theBuyer's willingnesstopay aprice greaterthan theprice oﬀered.

SELLERAND BUYERRESPONSIBILITIES
Eitherthe purchaseagreement oraseparate documentwill containa conﬁrmaƟonofwhich agentis represenƟngyouand whetherthat agentis represenƟng you exclusivelyin the transacƟon or acƟngas adual agent. Pleasepay aƩenƟon tothat conﬁrmaƟontomake sureit accurately reﬂectsyour understandingof youragent's role. Theabove duƟesofthe agentin areal estate transacƟondo notrelieve aSelleror Buyerfrom theresponsibility to protecthis orher owninterests. Youshould carefullyread allagreements toassurethat theyadequately expressyour understanding ofthe transacƟon. Arealestate agentis aperson qualiﬁed toadvise about realestate. If legalortax adviceis desired,consult acompetentprofessional. If youarea Buyer,you havetheduty toexercise reasonablecare toprotectyourself, includingas tothose factsaboutthe propertywhich areknown toyouor withinyour diligent aƩenƟonand observaƟon. BothSellersand Buyersshould strongly considerobtaining taxadvice fromacompetent professionalbecause thefederal andstatetax consequencesof a transacƟoncan becomplex andsubjectto change.

Throughoutyour realproperty transacƟonyoumay receivemore thanone disclosureform,depending uponthe numberofagents assisƟngin thetransacƟon. The lawrequires eachagent withwhomyou havemore thana casual relaƟonshipto presentyou withthisdisclosure form. Youshouldread itscontents each Ɵme itis presentedto you,considering the relaƟonshipbetween youand thereal estateagentin your speciﬁc transacƟon. This disclosureform includestheprovisions of SecƟons2079.13 to2079.24, inclusive,ofthe CivilCode setforth onpage2. Readit carefully. I/WE ACKNOWLEDGERECEIPT OFACOPY OFTHIS DISCLOSUREAND THEPORTIONS OFTHE CIVILCODEPRINTED ONTHE BACK(OR ASEPARATEPAGE).

Buyer Seller Lessor Lessee Date:

Agent: Hayes Commercial Group, Inc. DRELic.#: 02017017
Real EstateBroker (Firm)
By: DRELic. #: 01144570 | 01472452 Date:
(Salespersonor Broker-Associate)
30 THISFORM HASBEEN PREPAREDBYAIR CRE. NOREPRESENTATION ISMADEAS TOTHE LEGALVALIDITYOR ADEQUACYOF THISFORMFOR ANYSPECIFIC TRANSACTION. PLEASESEEK LEGALCOUNSELAS TOTHE APPROPRIATENESSOF THISFORM. 31 DISCLOSUREREGARDINGREALESTATEAGENCYRELATIONSHIP
CIVILCODESECTIONS 2079.13THROUGH2079.24(2079.16APPEARSONTHE FRONT) 2079.13.As usedin SecƟons2079.7and 2079.14to 2079.24,inclusive, thefollowingterms havethe followingmeanings:
(a) “Agent”means apersonacƟng underprovisions ofTitle 9 (commencingwith SecƟon 2295)in areal property transacƟon,and includesa person whois licensedas a realestate broker underChapter 3 (commencing withSecƟon 10130) ofPart 1 ofDivision 4 ofthe Business and ProfessionsCode, and underwhose license alisƟng is executed or anoﬀerto purchase is obtained. The agent in the real propertytransacƟon bears responsibility for that agent's salespersons or brokerassociates who perform asagents ofthe agent.When asalesperson orbroker associateowes aduty toany principal,or toany buyeror sellerwho isnot aprincipal, ina realproperty transacƟon, that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associatefuncƟons. (b) “Buyer” means a transferee in a real propertytransacƟon, and includes a person who executes anoﬀer to purchase real property from a seller through an agent, or who seeks the services of anagent in more thana casual, transitory, orpreliminary manner, with theobject of entering intoa real propertytransacƟon.“Buyer” includes vendee or lessee of real property.(c) “Commercial real property” means all realproperty in the state, except (1) single-familyresidenƟal real property, (2) dwelling units made subject to Chapter 2 (commencing withSecƟon 1940) of Title 5, (3) a mobile home, asdeﬁned in SecƟon 798.3, (4) vacant land, or (5) arecreaƟonal vehicle, as deﬁned in SecƟon 799.29. (d) “Dual agent” means an agentacƟng, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real propertytransacƟon. (e) “LisƟng agreement” means awriƩen contract between a seller of real property and an agent, by which the agent has been authorized to sell thereal property or toﬁnd orobtain a buyer, including rendering other servicesfor which a real estate license isrequired to the seller pursuant to the terms of theagreement.(f) “Seller's agent” means a personwho has obtained alisƟng of real propertyto act as an agent forcompensaƟon.(g) “LisƟng price” is the amount expressed in dollarsspeciﬁed in the lisƟng for which the seller is willing to sell the real property through the seller's agent.(h) “Oﬀering price” is the amount expressed in dollarsspeciﬁedin anoﬀer to purchase for which thebuyer is willing to buy the real property.(i) “Oﬀer to purchase” means awriƩen contract executed by a buyeracƟng through a buyer's agent that becomes the contract for the sale of the real property upon acceptance by the seller.(j) “Real property” means any estatespeciﬁed by subdivision (1) or (2) ofSecƟon 761 in property, and includes (1) single-familyresidenƟal property, (2)mulƟ-unit residenƟal property with more than four dwelling units, (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as deﬁned in SecƟon 18007 of the Health and Safety Code, or a mobile home asdeﬁned in SecƟon 18008 of the Health and Safety Code, whenoﬀered for sale or sold throughan agentpursuant tothe authoritycontainedin SecƟon10131.6 oftheBusiness andProfessions Code.(k) “RealpropertytransacƟon” meansa transacƟonfor the sale of real property in which an agent is retained by a buyer, seller, or both a buyer and seller to act in thattransacƟon, and includes alisƟng or an oﬀer to purchase. (l) “Sell,” “sale,” or “sold” refers to atransacƟon for the transfer of real property from the seller to the buyer and includes exchanges of real property between theseller andbuyer, transacƟons forthe creaƟonof a realproperty salescontract within themeaning ofSecƟon 2985, andtransacƟons forthe creaƟon ofa leasehold exceedingone year'sduraƟon. (m) “Seller”means thetransferor in areal propertytransacƟon and includesan ownerwho lists realproperty withan agent, whether or not a transfer results, or who receives anoﬀer to purchase real property of which he or she is the owner from an agent on behalf of another. “Seller” includesboth avendor andalessor ofreal property. (n) “Buyer'sagent”means anagent whorepresentsa buyerin arealpropertytransacƟon. 2079.14. A seller's agent and buyer's agent shall provide the seller and buyer in a real property transacƟon with a copy of the disclosure formspeciﬁed in SecƟon 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer, except as provided inSecƟon 2079.15, as follows:(a) The seller's agent, if
any, shallprovide the disclosure formto the seller priorto entering into thelisƟng agreement. (b) Thebuyer's agent shall providethe disclosure form tothe buyer as soonas pracƟcableprior toexecuƟon ofthe buyer's oﬀer topurchase. Ifthe oﬀer topurchase isnot preparedby thebuyer's agent,the buyer'sagentshall presentthe disclosureform tothe buyernotlater thanthe nextbusiness day aŌerreceiving theoﬀer topurchasefrom thebuyer. 2079.15. In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant toSecƟon 2079.14, the agent shall set forth, sign, anddate a wriƩen declaraƟon ofthe factsof therefusal.
2079.16 Reproducedon Page1 ofthis ADform.
2079.17(a) As soon aspracƟcable, the buyer's agent shall disclose to the buyer and seller whetherthe agent isacƟng in the real propertytransacƟon as the buyer's agent, or as a dual agentrepresenƟng both the buyer and the seller. ThisrelaƟonship shall be conﬁrmed in the contract to purchase and sell real property or in a separate wriƟngexecuted or acknowledged bythe seller, the buyer,and the buyer's agentprior to or coincidentwithexecuƟon of thatcontract by the buyerand the seller, respecƟvely. (b) As soon aspracƟcable, the seller's agent shalldisclose to the seller whether the seller's agent isacƟng in the real propertytransacƟon as the seller's agent, oras a dual agentrepresenƟng both the buyer andseller. ThisrelaƟonship shall beconﬁrmed in the contractto purchase and sell realproperty or in a separate wriƟng executedor acknowledgedbythe sellerand theseller's agentpriorto orcoincident withthe execuƟon ofthat contractbythe seller. (C)CONFIRMATION: Thefollowing agencyrelaƟonshipsare conﬁrmedfor thistransacƟon.

Seller's Brokerage Firm DO NOT COMPLETE, SAMPLE ONLY License Number Is the broker of (check one): the seller; or both the buyer and seller. (dual agent) Seller's Agent DO NOT COMPLETE, SAMPLE ONLY License Number Is (check one): the Seller's Agent. (salesperson or broker associate); or both the Buyer's Agent and the Seller's Agent. (dual agent) Buyer's Brokerage Firm DO NOT COMPLETE, SAMPLE ONLY License Number Is the broker of (check one): the buyer; or both the buyer and seller. (dual agent) Buyer's Agent DO NOT COMPLETE, SAMPLE ONLY License Number Is (check one): the Buyer's Agent. (salesperson or broker associate); or both the Buyer's Agent and the Seller's Agent. (dual agent) (d)The disclosuresand conﬁrmaƟonrequiredby this secƟon shallbe in addiƟonto thedisclosure requiredby SecƟon 2079.14.An agent'sdutyto providedisclosure and conﬁrmaƟon of representaƟon inthis secƟon maybe performedby arealestate salespersonor brokerassociate aﬃliated withthat broker. 2079.18(Repealed pursuantto AB-1289,2017-18California LegislaƟvesession) 2079.19The paymentof compensaƟonorthe obligaƟonto paycompensaƟon toanagent bythe sellerorbuyer isnot necessarily determinaƟveof aparƟcular agency relaƟonshipbetween anagent andtheseller orbuyer. AlisƟng agentanda sellingagent mayagreeto shareany compensaƟonorcommission paid,or anyright toany compensaƟonor commissionfor whichan obligaƟon arisesas theresult ofareal estate transacƟon, andtheterms ofany suchagreementshall notnecessarily be determinaƟveof aparƟcular relaƟonship.
2079.20Nothing inthis arƟclepreventsan agentfrom selecƟng,as acondiƟonof theagent's employment,a speciﬁc formof agency relaƟonshipnot speciﬁcally 32 prohibitedby this arƟcle iftherequirements of SecƟon 2079.14and SecƟon2079.17are compliedwith. 2079.21(a) Adual agentmaynot, withoutthe expresspermission oftheseller, discloseto thebuyerany conﬁdenƟal informaƟon obtainedfromthe seller. (b) Adual agentmay not,without theexpresspermission ofthe buyer,disclose totheseller any conﬁdenƟal informaƟonobtainedfrom thebuyer. (c) “ConﬁdenƟal informaƟon” meansfacts relaƟngto theclient's ﬁnancial posiƟon, moƟvaƟons, bargaining posiƟon, orotherpersonal informaƟonthat mayimpactprice, suchas theselleris willing toaccept aprice lessthanthe lisƟngprice orthe buyeriswilling topay apricegreater thanthe price oﬀered.(d) This secƟon doesnot alterinany waythe dutyor responsibilityof adual agenttoany principalwith respectto conﬁdenƟal informaƟonother thanprice. 2079.22Nothing inthis arƟcleprecludesa seller'sagent fromalso beingabuyer's agent.If aselleror buyerin a transacƟonchooses tonot berepresented byan agent,that doesnot, ofitself,make thatagent adual agent. 2079.23(a) Acontract betweentheprincipal andagent maybe modiﬁedoraltered tochange theagency relaƟonship atany Ɵmebeforethe performanceof theact whichis theobject oftheagency withthe wriƩenconsent ofthe parƟes tothe agency relaƟonship. (b)A lenderoran aucƟoncompany retainedby alenderto controlaspects ofa transacƟonofreal propertysubject tothis part,including validaƟng thesales price,shallnot require,as a condiƟonof receivingthe lender's approvalof the transacƟon, thehomeowneror lisƟngagent todefend orindemnifythe lenderor aucƟoncompanyfrom anyliability allegedtoresult fromthe acƟons ofthe lenderor aucƟoncompany.Any clause,provision, covenant,or agreement purporƟngto imposean obligaƟontodefend orindemnify alenderor an aucƟon companyin violaƟonof thissubdivisionis againstpublic policy,void, andunenforceable. 2079.24Nothing inthis arƟcleshallbe construedto eitherdiminish thedutyof disclosureowed buyersandsellers byagents andtheirassociate licensees,subagents, andemployees orto relieveagentsand theirassociate licensees,subagents, andemployeesfrom liabilityfor theirconductin connecƟonwith actsgovernedby this arƟcleor forany breachofa ﬁduciaryduty ora dutyofdisclosure.

AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng. 33 Exhibit A
6500 Hollister Ave, Ste 100
Premises
Common Premises Not a part
34 Exhibit B
6500 Hollister Ave, Ste 100
Parking
Handicap
8 spaces
Goleta Library,
permanent spaces
10 spaces
Goleta Library,
temporary extra spaces
10 spaces
35 65266.00025\43259525.2
Exhibit C-1
Work Letter
Dated: February 1, 2025
By and Between:

Lessor: 6500 Hollister LLC
Lessee: City of Goleta
Property Address: 6500 Hollister Ave., Suite 105, Goleta, CA 93117 This Work Letter sets forth the terms and conditions relating to the construction of the Improvements within the Premises. It is organized chronologically to address the sequence of events during construction. All references to "this Lease" refer to the Standard Multi-Tenant Office Lease – Net, to which this Work Letter is attached as Exhibit
C. References to "this Work Letter" refer to Paragraphs 1 through 12 herein.

1. Improvements
Prior to delivering possession of the Premises, Lessor shall substantially complete the Improvements to the Premises in accordance in Exhibit C-2 attached, and Paragraph 12 below. The Improvements shall be of a high- quality commercial standard consistent with the Building, and suitable for Lessee’s use. Lessor shall obtain Lessee’s prior approval of design and materials specified in the approved Preliminary Plans and Final Plans (collectively, the "Plans"). Any material deviations from the Plans shall require Lessee’s prior written consent.

Lessor shall use commercially reasonable efforts to complete the Improvements in a timely manner and in accordance with applicable laws and industry standards.

Lessee and Lessor agree that the Plans shall not include any changes that:
• Require modification to any portion of the Project outside the Premises; • Detrimentally affect the Building’s utilities, systems, structure, or overall value, use, or appearance; • Interfere with other tenants' operations;
• Increase Lessor’s cost of operating the Project; or
• Violate any applicable building codes, zoning laws, or other legal requirements.

2. Improvement Costs
Lessee shall bear the full cost of the Improvements. As of the Lease execution date, the estimated total cost is approximately $74,975.00, based on the "Preliminary Budgetary Estimate" prepared by Pacific Acoustics North, Inc. (Exhibit C-2). Lessor will engage a general contractor ("Contractor") for construction of the Improvements in accordance with the approved Plans and shall pay them directly. Within 30 days of receiving an invoice from Lessor, provided such costs: (a) are consistent with the approved Plans and scope of work; and ( b) are substantiated by itemized invoices and lien releases from the Contractor. Lessee shall reimburse Lessor 100% of the actual costs paid by Lessor to the Contractor. Lessor’s Contractor shall comply with all prevailing wage requirements applicable to Lessee , and Lessor shall ensure the Contractor provides all necessary certifications and documentation verifying compliance.

SUBJECT TO FINAL NEGOTIATIONS
36 65266.00025\43259525.2

3. Preliminary Plans & Budget
Lessee is responsible for managing the design, permitting process, and associated costs for the Improvements.

Lessee shall expedite these processes to enable Lessor to complete construction and deliver the Premises by the Commencement Date.

Before submission for plan check, Lessor shall approve or provide specific objections , which such approval shall not be unreasonably withheld, conditioned or delayed, to the Preliminary Plans within 10 days of receiving them.

Failure to respond within this period shall be deemed approval. If the Preliminary Plans cannot be modified within 30 days of disapproval to satisfy both parties, this Lease shall terminate upon written notice from either party.

Lessor shall refund any prepaid rent or security deposit, less reasonable legal and administrative costs incurred (such Lessor costs not to exceed $5,000).

After approving the Preliminary Plans, Lessor will promptly provide them to the Contractor for an updated Preliminary Cost Estimate . Lessee shall approve or object to this estimate, the Construction Contract, and the Project Schedule within 10 days of receipt. Failure to respond within this period shall be deemed approval. If the parties cannot agree on a revised estimate within 30 days, the Lease shall terminate, and Lessor shall refund prepaid rent and the security deposit, less applicable costs.

4. Final Plans & Budget
After approval of the Preliminary Plans and Cost Estimate, Lessee shall prepare the Final Plans and submit them to the Contractor for a final construction cost estimate. Lessor shall approve or provide specific objections within 10 days of receipt. Failure to respond shall be deemed approval. Once approved, the Final Plans supersede prior agreements regarding the Improvements. Lessee shall then submit the Final Plans to the City of Goleta for plan check approvals and permitting.

5. Retention of Contractor; Warranties and Guarantees
Lessor assigns to Lessee, to the extent assignable, all warranties and guarantees from the Contractor related to the Improvements. Lessee waives all claims against Lessor arising from the construction of the Improvements, except to the extent Lessee's claims relate to Lessor's breach of the Lease , to defects in the Improvements that are covered by such warranties and guarantees, or as otherwise provided in the Lease or this Work Letter.

Lessor warrants that the Improvements will be constructed pursuant to the Final Plans, in a commercially professionally manner and in compliance with all applicable building codes in effect when the building permit is issued. However, Lessor makes no representations regarding the suitability of the Improvements for Lessee’s intended use. Any modifications needed to tailor the space for Lessee’s specific ope rations shall be at Lessee’s sole expense.

6. Substantial Completion
"Substantial Completion" occurs when:

1. The Improvements are constructed per the Final Plans;

2. Lessor receives all required governmental approvals, including a temporary or final certificate of occupancy (if applicable);

3. Lessee has been provided with written notice of completion.

Lessee shall submit a written punch list of incomplete items within 10 business days of possession of the Premises.

Lessor shall diligently complete these items without delaying rent commencement , subject to force majeure events (as provided in Section 7 below).
37 65266.00025\43259525.2

7. Delays
If Lessor is delayed due to force majeure events (e.g., strikes, weather, government delays) or Lessee Delays (e.g., changes requested by Lessee, failure to provide timely approvals), the Commencement Date will be extended accordingly on a day-for-day basis.

8. Change Orders
If modifications to the Improvements arise due to unforeseen regulatory requirements or Lessee requests, Lessor shall provide Lessee with a
Change Order Estimate detailing cost and scheduling impacts. Lessee shall approve or reject the estimate within 3 business days. Failure to respond shall be deemed rejection. Any delays caused by Change Orders shall be considered Lessee Delays.

9. Commencement Date Memorandum
Following Substantial Completion, upon Lessor’s request, the parties shall execute a Commencement Date Memorandum confirming the Lease term dates.

10. Work Done by Lessee
Lessee’s work within the Premises shall comply with Section 7.3 of the Lease . Lessor may require Lessee to use union labor and Lessor-approved contractors for plumbing, mechanical, electrical, and ceiling work.

11. Early Entry
If notified by Lessor, Lessee may enter the Premises 10 days before Substantial Completion to install fixtures and equipment, provided such entry does not materially interfere with Lessor’s construction activities. Lessee's early access is subject to all Lease terms.

12. Description of Improvements
The scope of work includes the demolition of interior office walls (marked in red in the plans) and additional work outlined in the
Below Magid Preliminary Budgetary Estimate (Rev. 1.0, November 27, 2024) attached as Exhibit C-2.

38 65266.00025\43259525.2

39 DIR#1000026140
CA CONTRACTOR LICENSE #315331
THIS P

ROPOSAL IS GOOD FOR THIRTY DAYS FROM DATE ABOVE

Februa
ry 13, 2025
To: Fred Kim c/o Goleta Valley Library
Re: Goleta Valley Library Temporary Relocation
We
propose to furnish labor and material to complete the following work as per our jobwalk at 6500 Hollister Ave. All work will be performed during regular business hours M-F 7am-4pm:
• Protect existing flooring as needed
• Install temporary dust control barrier where needed throughout job • Demo 40’ panel wall, back wall of the storage room, and back wall in server room
• Demo T-bar ceiling in closet room, server room, and side room with casework • Demo casework inside room that will become part of Server Room • Demo 2 doors on west side of building
• Demo door, sidelite and jamb going into server room from occupied area and infill opening
• Demo single door and jamb on south side by kitchenette and reframe to a 4’x8’ cased opening
• Furnish and install ADA compliant, exit only panic bar on Southwest emergency exit door
• Reframe and drywall soffits in server room where wall demo occurred • Furnish and install T-bar and ceiling tile in newly expanded server room • Furnish and install doorstop with hook in kid’s room
• Tape and paint newly drywalled areas throughout to match existing • Patch and repair existing flooring with Owner’s attic stock • Perform the following electrical work:
 Demo of existing electrical
 Demo power in partition walls. Demo power in existing storage/copy rooms. Demo power where walls are being removed. Demo the existing lighting, existing light switches, ladder racks, surface mounted electrical, conduit nipples, in the existing MDF room.
 Install (9) new 2x2 flat panel LED lighting in the new room build out.  New lights to be controlled the existing switch located.  Existing electrical in room to remain.
 Install (8) quad outlets in the new room build out. (2) per wall, to be fed from the existing electrical panel within room.

EXHIBIT C-2
40 DIR#1000026140
CA CONTRACTOR LICENSE #315331

THIS PROPOSAL IS GOOD FOR THIRTY DAYS FROM DATE ABOVE

 Intercept the existing lighting circuit feeding the main entry area and install (1) ceiling mount occupancy sensor. Existing lighting switch to remain.

EXCLUSIONS: Flooring, Plumbing, Dumpsters, Drawings, Permits, Fees, Liquidated Damages and Overtime

The cost of this work will be $74,975.00

Thank you,

RJ Cordeiro
Construction Manager

41 6500 Hollister Avenue Partners, LLC
6500 Hollister Ave, Santa Barbara, CA
2025 BUDGET -- OVERALL SUMMARY
EXPENSES -- Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 TOTAL

COMMON AREA -
55101000 Electricity 20,900 20,900 20,900 20,900 20,900 20,900 20,900 20,900 20,900 20,900 20,900 20,900 250,800 55102000 Gas 2,070 2,070 2,070 2,070 2,070 2,070 2,070 2,070 2,070 2,070 2,070 2,070 24,840 55103000 Water 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 22,260 55104000 Trash 743 743 743 743 743 743 743 743 743 743 743 743 8,916 55800000 Janitorial Contract 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 55801000 Janitorial Supplies 199 199 199 199 199 199 199 199 199 199 199 199 2,388 55803000 Janitorial window cleaning - - - - - - - - - - - - - 55805000 Janitorial Other 400 400 400 400 400 400 - - - - - - 2,400 55200000 Fire Protection 688 688 688 688 688 688 688 688 688 688 688 688 8,256 55301000 HVAC - Extra 250 250 250 250 250 250 250 250 250 250 250 250 3,000 55300000 HVAC - Contract 1,000 - - 1,000 - - 1,000 - - 1,000 - - 4,000 55851000 Electrical 350 350 350 350 350 350 350 350 350 350 350 350 4,200 55250000 Elevator 282 282 282 282 282 282 282 282 282 282 282 282 3,384 55500000 Pest Control 210 210 210 210 210 210 210 210 210 210 210 210 2,520 55600000 Signage - - - - - 5,000 - - - - - - 5,000
56190000 Internet 480 480 480 480 480 480 480 480 480 480 480 480 5,760 55853000 Roof Repairs - - - - - - - - - - - - -
77100000 Management Fees 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 4,600 55,200 55850000 Repairs & Maintenance 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 55901000 Parking Lot Sweeping - - - - - - - - - - - - - 55900000 Parking Lot Repairs - - -
56150000 Property Taxes - - - 118,179 - - - - - - - 120,543 238,722 56100000 Insurance 47,000 - - - - - - - - - 47,000
56000000 Landscaping - Monthly Maint 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400 56001000 Landscaping - Extras 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 25,200 55750000 Interior Plants 100 100 100 100 100 100 100 100 100 100 100 100 1,200 TOTAL CAOE 91,927 43,927 43,927 163,106 43,927 48,927 44,527 43,527 43,527 44,527 43,527 164,070 819,446 Per Sq. Ft. 2019 Measurements: 75,659
NNN: 819,446
NNN Total/sq/ ft/ month: 0.90
NNN /w/O Utilities per sq/ ft / month: 0.56
Utilities per sq/ ft / month: 0.34

EXHIBIT D
42 Exhibit E
6500 Hollister Ave, Ste 100
1st floor Common Areas
Common Not a part
43 Exhibit E
6500 Hollister Ave, Ste 100
2nd floor Common Areas
Common Not a part
44

Goleta City CouncilFebruary 25, 2025

Goleta City Council
February 25, 2025