Common use of Construction of Tenant Improvements Clause in Contracts

Construction of Tenant Improvements. Lessee understands and agrees that Lessor is currently in the process of constructing the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied.

Construction of Tenant Improvements. Lessee understands Tenant shall install the Tenant Improvements (as described in Paragraph 2(a) below) in accordance with the terms and agrees conditions of this Work Letter. The quantities, character and manner of installation of all of the work related to the Tenant Improvements shall be subject to the limitations imposed by any applicable governmental regulations, laws, ordinances, codes and rules. Notwithstanding the foregoing, Landlord may at Landlord’s sole election itself (with Landlord’s contractor) construct the portion of the Tenant Improvements that Lessor consist of the restrooms and related improvements that will service Building 2 (the “Restroom Improvements”), at Tenant’s cost up to a maximum amount of $322,764 (subject to Section 9(b) below), provided that (a) Landlord notifies Tenant in writing of such election prior to Tenant’s commencement of construction of the Tenant Improvements, and (b) Landlord shall use commercially reasonable efforts to not unreasonably interfere with or delay Tenant’s installation of the Tenant Improvements. If a certificate of occupancy or equivalent permit sign-off for the Premises is currently delayed beyond the Building 2 Scheduled Commencement Date solely as a result of Landlord’s failure to substantially complete the Restroom Improvements prior to such date, which failure does not result from Tenant Delays (as defined below) or Force Majeure, then the Building 2 Commencement Date shall be extended day for day by the number of days after the Building 2 Scheduled Commencement Date until the issuance of a certificate of occupancy or equivalent permit sign-off (but in no event shall the Building 2 Commencement Date be delayed beyond the date Tenant commences business in the process Premises), provided, however, that Tenant delivers written notice to Landlord at such time as Tenant becomes aware that Landlord is in danger of constructing the improvements which causing such delay. “Tenant Delays” shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: mean (i) fifty percent (50%) upon approval Tenant’s delay in submittal of such change by Lessor; and Tenant’s Plans and/or responses to Landlord’s comments to Tenant’s Plans beyond the time periods provided in this Work Letter, (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy Tenant’s delay in any submittals for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided permits or other governmental approvals with a punch list of such tenant improvements prior respect to the commencement of Tenant Improvements (including without limitation the lease termRestroom Improvements), (iii) changes in Tenant’s Plans as they relate to the Restroom Improvements after they have been submitted to governmental authorities for permits, (iv) delay in obtaining materials for reasons outside Landlord’s reasonable control, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that (v) Tenant’s failure to provide reasonable access to the Premises to do not conform Landlord’s contractors to install the plans and specifications attached hereto as Exhibit "B"Restroom Improvements, as reasonably measured or unreasonable interference with such installation by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedTenant or its contractors or agents.

Construction of Tenant Improvements. All improvements not included within the scope of the Building Shell shall be deemed “Tenant Improvements.” Lessor, using the General Contractor, shall construct the Tenant Improvements and shall contribute the Tenant Improvement Allowance towards the payment of same and Lessee understands shall pay all costs associated with same in excess of the Tenant Improvement Allowance. Notwithstanding the foregoing, Lessee may select a general contractor other than Lessor’s General Contractor to construct the Tenant Improvements by giving written notice to Lessor on or before April 1, 2000, provided that (i) such general contractor has sufficient financial strength and agrees that Lessor is currently experience in constructing first class quality improvements of the type to be constructed in the process Premises to reasonably satisfy Lessor and any lender whose loan is secured by the Project or any part thereof and, (ii) Lessee agrees in such notice that the Tenant Improvements identified on Exhibit N hereto as “Early Construction Improvements” shall be constructed by Lessor’s General Contractor to facilitate construction of constructing the improvements balance of the Tenant Improvements by the Lessee selected general contractor (that the Early Construction Improvements shall retain concurrent status as Tenant Improvements, the cost of which shall comprise is to be charged to the Premises. In the course of Tenant Improvement Allowance), and (iii) such constructiongeneral contractor is ready, Lessor hereby willing and able and agrees to construct the tenant improvements set forth Tenant Improvements in accordance with Lessor’s General Contractor’s construction schedule, and (iv) any failure by such Lessee selected general contractor to construct the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications Tenant Improvements in accordance with Lessor’s General Contractor’s construction schedule shall be at Lessee's sole cost and expenseLessee Delay. If Lessor’s General Contractor constructs the Tenant Improvements, including or if Lessee selects a ten percent (10%) administrative payment general contractor other than Lessor’s General Contractor, but Lessor’s General Contractor nonetheless contracts with Lessor to Lessor. Such additional payments construct the “Early Construction Improvements,” in each case the contract shall be paid by Lessee a guaranteed maximum price contract based upon the successful bids of subcontractors and/or negotiated prices as provided in Section 2.04(f). The total compensation to Lessor as follows: (i) fifty percent (50%) upon approval of the General Contractor under such change by Lessor; and (ii) fifty percent (50%) prior contract shall be equal to occupancy a contractor’s fee not to exceed an amount equal to 2.5% of the Premises contract (provided that a contractor’s fee shall not be payable for change orders required due to coordination errors caused by Lessee. All tenant improvements shall be deemed substantially completed when the City General Contractor or any of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior its subcontractors) and an amount not to the commencement exceed an amount equal to 2 1/2% of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises contract for general conditions plus an amount equal to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement .75% of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedcontract for insurance.

Construction of Tenant Improvements. Lessee understands and agrees that Lessor is currently in the process of constructing the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBITEXHIBIT "B". Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied.

Construction of Tenant Improvements. Lessee understands Following Landlord’s approval of the Final Plans, and agrees that Lessor is currently once construction has commenced, Tenant’s contractor (selected as provided in Section 8(n)) will commence and diligently proceed with the process construction of constructing the improvements which Tenant Improvements. Tenant shall comprise use diligent efforts to cause its contractor to complete the PremisesTenant Improvements in a good and workmanlike manner in accordance with the Final Plans. Landlord shall have the right to enter upon the Premises to inspect Tenant’s construction activities following reasonable advance notice Tenant. In the course event of a Landlord Delay (as hereinafter defined) which causes Tenant to be delayed in its ability to substantially complete the Tenant Improvements and use the Premises (or portion thereof) for normal business operations on or before the date that is six (6) months following Landlord’s delivery of the Premises to Tenant with the Tenant Improvements substantially completed, and provided Tenant does not actually use the Premises (or portion thereof) as a result of such constructionLandlord Delay, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications then Tenant shall be at Lessee's sole cost and expense, including entitled to a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as followsper day rent credit for each day of a Landlord Delay equal to: (i) fifty percent (50%) upon approval the rentable square footage of such change the effected portion of the Premises, multiplied by Lessor; and (ii) fifty percent (50%) prior to occupancy the Annual Rental Rate per rentable square foot, and with such product then divided by 365. Tenant acknowledges that some interruptions and/or interference with Tenant’s business may occur during the course of Tenant’s completion of the Premises by Lessee. All tenant improvements Tenant Improvements, but agrees that no interruptions or inconveniences to Tenant or its business suffered as a result of Tenant’s own completion of the Tenant Improvements shall be deemed substantially completed when the City constitute an eviction of Carpinteria issues a Certificate of Occupancy for Tenant from the Premises. Notwithstanding , whether constructive or otherwise, and Tenant shall in no event be excused from paying the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior rent that it is scheduled to pay pursuant to the commencement terms of the lease termLease, except in accordance with the terms and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement conditions of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedimmediately preceding sentence.

Construction of Tenant Improvements. Lessee understands Tenant has personally inspected the Leased Premises and agrees accepts the same "as is" without representation or warranty by Landlord of any kind and with the understanding that Lessor is currently Landlord shall have no responsibility with respect thereto except to construct in a good and workmanlike manner the improvements in the process of constructing the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth Leased Premises in the accordance with Tenant's plans and specifications which shall be mutually agreed upon by both Landlord and Tenant and attached hereto as Exhibit "B"B in an amount not to exceed Twenty-seven Thousand Three Hundred Forty-six Dollars ($27,346.00) (-Landlord's Allowance') and except as provided in Section 2.01. Such plans Tenant hereby acknowledges and specifications are agrees that all costs in excess of Landlord's Allowance will be (i) paid by Tenant to Landlord within thirty (30) days of Tenant's receipt of Landlord's invoice therefor; or (ii) amortized at an interest rate of eleven percent (11%) per annum and paid by Tenant as Additional Rent over the Lease Term. Notwithstanding anything contained herein to the contrary, Landlord agrees that, at Landlord's sole cost and expense (and without deduction from Landlord's Allowance), Landlord shall repair the existing defect in floor elevation rise within the Leased Premises. In addition, Landlord and Tenant hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed agree that Landlord will not be responsible for removing the existing scissor xxxx lift in the Leased Premises (the `Lift') and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications Tenant shall be have the right, at LesseeTenant's sole cost and expense, including a ten percent (10%) administrative payment to Lessorremove the Lift, provided that Tenant promptly repairs any damage caused by such removal and restores the Leased Premises to its prior condition. Such additional payments In the event Tenant elects not to remove the Lift, Tenant shall have no liability or responsibility to ensure that the Lift is operational at the end of the Lease Term. Landlord hereby agrees that the tenant finish improvements to be constructed pursuant to Exhibit B shall be paid submitted to four (4) contractors for bids, including one (1) contractor selected by Lessee Tenant. Landlord and Tenant shall thereafter work together in good faith and in a reasonable manner to Lessor as follows: (i) fifty percent (50%) upon approval of select the contractor to perform such change by Lessor; work, based on price, quality, delivery and (ii) fifty percent (50%) prior other reasonable factors. Landlord shall keep Tenant involved in the selection process, but Landlord shall have the ultimate right to occupancy select the contractor based on its reasonable evaluation of the Premises by Lesseefactors set forth above. All tenant improvements There shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims d presumption that the lowest bid will be selected, unless outweighed by other factors. Landlord agrees to warrant all work performed on the tenant finish improvements within the Leased Premises pursuant to do not conform to EXHIBIT B for a period of one (1) year from the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedCommencement Date.

Construction of Tenant Improvements. Lessee understands Upon Final Approval of the Working Drawings, Landlord agrees promptly to bid the construction of the Expansion Improvements to the following four (4) mutually approved general contractors: (i) Xxxxx & Xxxx, (ii) Resource Commercial, (iii) ICI Construction, Inc., and agrees that Lessor is currently in the process of constructing the improvements which shall comprise the Premises. In the course (iv) Xxxxxx Construction, and to immediately provide a copy of such construction, Lessor hereby agrees bids to construct Tenant for Tenant's consideration. The costs associated with the tenant improvements construction of the Expansion Improvements shall be paid as set forth in Section 5 of this Work Letter. Landlord shall see that the plans construction complies with all applicable building, fire, plumbing, electrical, health, and specifications attached hereto as Exhibit "B". Such plans sanitary codes, regulations, laws, ordinances, rules and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications regulations of any applicable governmental authority, the satisfaction of which shall be at Lessee's sole cost evidenced by a certificate of occupancy for the Expansion Space if the same is required to be issued; provided that in the event the Working Drawings do not comply with such codes and expenseregulations, including a ten percent (10%) administrative payment to Lessor. Such additional payments all costs resulting from such non-compliance shall be paid by Lessee Tenant. Further, Landlord shall see that the construction complies with any and all restrictive covenants and/or deed restrictions applicable to Lessor as follows: the Expansion Space. Landlord shall recommend the selection of the Contractor to Tenant ten (10) business days after Final Approval of the Working Drawings; and upon Tenant's approval of the selection, Landlord shall promptly enter into a construction contract ("Construction Contract"), subject to Tenant's reasonable approval (which shall be not unreasonably withheld or delayed) with the general contractor approved by Tenant (which approval shall not be unreasonably withheld) (the "Contractor"). Landlord shall cause the construction of the Expansion Improvements to be carried out in substantial conformance with the Working Drawings in a good and xxxxxxx like manner using first-class materials. The Construction Contract shall, at a minimum, call for (i) fifty percent the construction of the Expansion Improvements for a stipulated sum contract, based on the Working Drawings; (50%ii) upon contractor warranties as described in AIA form A201 1997 Edition; (iii) Tenant's right to review and approve all Contractor pay applications (which approval of such change shall not be unreasonably withheld or delayed by LessorTenant); and (iiiv) fifty percent (50%) prior the Contractor to occupancy furnish evidence of the Premises insurance set forth in Schedule 1 attached to Exhibit D of the Lease and any other insurance required by LesseeLandlord, and naming Landlord and Tenant as an additional insured on all liability insurance policies. All tenant improvements Such Construction Contract price shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior subject to adjustment based on any changes to the commencement of Working Drawings required by Tenant in accordance with this Work Letter. The Construction Contract may not be amended nor the lease termConstruction Contract price increased by change order or otherwise, and without Tenant's prior written approval, which approval shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedunreasonably withheld or delayed.

Construction of Tenant Improvements. Lessee understands Tenant has personally inspected the Leased Premises and accepts the same “AS IS” without representation or warranty by Landlord of any kind and with the understanding that Landlord shall have no responsibility with respect thereto except to construct in a good and workmanlike manner the improvements designated as Landlord’s obligations in the attached Exhibit B. Landlord shall pay the cost of such improvements in an amount not to exceed Five Hundred Ninety-four Thousand Dollars ($594,000.00) (“Landlord’s Allowance”). Tenant hereby agrees that Lessor is currently all costs for tenant finish improvements which exceed Landlord’s Allowance shall be paid by Tenant to Landlord within thirty (30) days of receipt of Landlord’s invoice therefor. Notwithstanding anything contained herein to the contrary, Landlord hereby agrees to allow Oakwood Builders (“Oakwood”) to bid on the initial tenant finish improvement work to be performed in the process of constructing the improvements which shall comprise the Leased Premises. In the course event Oakwood’s bid is more than three percent (3%) lower than Landlord’s estimated cost of such constructiontenant finish improvements, Lessor hereby agrees Oakwood shall perform such tenant finish improvements and Landlord shall receive a supervisory fee in an amount not to construct exceed three percent (3%) of the costs incurred to complete the tenant finish improvements, together with customary general conditions. In the event Tenant reduces the initial tenant finish improvements set forth to achieve a cost savings; or in the plans event Oakwood performs the initial tenant finish improvements and specifications attached hereto the cost thereof plus Landlord’s supervisory fee is less than the Landlord’s Allowance, Tenant shall utilize the cost difference between Landlord’s Allowance and the actual costs incurred to complete the initial tenant finish improvements, towards additional tenant finish improvements within the Leased Premises, including wiring and cabling. In the event Landlord is chosen as Exhibit "B". Such plans and specifications are hereby clarified the general contractor, all work on the initial tenant finish improvements shall be performed by Duke Construction Limited Partnership or a subsidiary or affiliate of Landlord (“DCLP”) which shall receive a construction management fee, in an amount not to exceed seven percent (7%) of the costs incurred to complete the tenant finish improvements, together with customary general conditions, as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specificationsLandlord’s construction manager or general contractor. Any changes or additions made by Lessee to such plans and specifications work performed for non-structural tenant finish improvements shall be at Lessee's sole cost warranted by Landlord against defects in materials and expense, including workmanship for a period of one (1) year from the Commencement Date. Landlord and Tenant agree that all work on any subsequent tenant finish improvements shall be performed by DCLP which shall receive a construction management fee in an amount not to exceed ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All costs incurred to complete the tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificatefinish improvements, Lessee shall be provided together with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B"customary general conditions, as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedLandlord’s construction manager or general contractor.

Construction of Tenant Improvements. Lessee understands and agrees that Lessor is currently in Tenant shall be responsible for constructing within the process of constructing the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct Premises the tenant improvements set forth ("Tenant Improvements") described in the preliminary space plan attached hereto as Exhibit B-l ("Xreliminary Space Plan"). The Tenant Improvements for the Premises will be more particularly described in the plans and specifications attached hereto construction' drawings ("Construction Drawings") as Exhibit "B"provided below. Such plans Landlord and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has Tenant reviewed and approved the attached Preliminary Space Plan for construction of the Tenant Improvements so that Tenant can provide Landlord with the Construction Drawings. The Construction Drawings shall indicate the specific requirements of Tenant's lease space, outlining in detail interior partitions, floor coverings, a reflected ceiling plait, plumbing fixtures, and electrical plans (setting forth the electrical requirements of Tenant), all in conformity with the Preliminary Space Plan. The Construction Drawings shall include full energy calculations as required by the State of California and the city agencies. Tenant shall, at Tenant's sole cost, submit to Landlord, for Landlord's approval, the construction drawings and the identity of the proposed contractor at least five (5) business days prior to the commencement of ally work. Landlord shall approve or return the Construction Drawings within five (5) business days for further modification or such plans Construction Drawings are deemed approved. Landlord shall contribute a Tenant Improvement Allowance of $22.00/useable sq. ft., payable to Tenant upon Landlord's receipt of an invoice for the Tenant Improvements constructed. (1) Before commencing any work relating to improvements affecting the Premises, Tenant shall notify Landlord of the expected date of commencement thereof and specificationsof the anticipated cost thereof Landlord shall then have the right at any time and from time to time to post and maintain on the Premises such notices as Landlord reasonably deems necessary to protect the Premises and Landlord from mechanics' liens or any other liens. Any changes (2) Tenant shall pay when due all claims for labor or additions made materials furnished to Tenant for use in the Premises. Tenant shall not permit any mechanic liens or any other liens to be levied against the Premises for any labor or materials furnished to Tenant in connection with work performed on the Premises by Lessee or at the direction of Tenant. Tenant shall indemnify, hold harmless and defend Landlord (by counsel reasonably satisfactory to Landlord) from any liens and encumbrances arising out of any work performed or materials furnished by, or at the direction of Tenant. In the event that Tenant shall not, within twenty (20) days following the imposition of any such lien, cause such lien to be released of record by payment or posting of a proper bond, Landlord shall have, addition to all other remedies provided herein by law, the right, but not the obligation, to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such plans lien. All such sums paid by Landlord and specifications all expenses incurred by it in connection therewith, including attorneys fees and costs, shall be payable to Landlord by Tenant or demand with interest at Lessee's sole cost and expense, including a the rate of ten percent (10%) administrative payment to Lessorper annum. Such additional payments (3) All Improvements in or about the Premises performed by or on behalf of Tenant shall be paid by Lessee to Lessor done in a first-class, workmanlike manner, and shall be completed in compliance with all applicable laws, ordinances, regulations alp orders of any governmental authority having jurisdiction thereover, as follows: (i) fifty percent (50%) upon approval well as the requirements of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy insurers of the Premises by Lesseeand the Building. All tenant improvements shall be deemed substantially completed when (4) Upon Landlord's request, Tenant stall remove any contractor, subcontractor or material supplier from the City Premises and the Building if the work or presence of Carpinteria issues a Certificate of Occupancy for such person or entity results in labor disputes in or about the Building or Project or damage to the Premises, Building or Project. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied-9- 10 10.

Construction of Tenant Improvements. Lessee understands and agrees that Lessor is currently Landlord shall perform the work (the "Landlord Work") described in the process of constructing the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications EXHIBIT LW attached hereto as Exhibit in a good and workmanlike manner. The term of this Lease shall commence (the "BCommencement Date". Such plans ) fourteen (14) days after the date Landlord shall have substantially completed the Landlord Work (that is, has completed the Landlord Work, except for normal "punch list" items) and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee shall have delivered to such plans and specifications shall be at Lessee's sole cost and expense, including Tenant a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: copy of either (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a permanent Certificate of Occupancy for the PremisesLeased Property from the appropriate building official of the City of Taunton, Massachusetts or (ii) a Temporary Certificate of Occupancy for the Leased Property from such official, provided that such Temporary Certificate of Occupancy contains no conditions which would render the Premises unusable by Tenant for the Permitted Use. Notwithstanding In the issuance event the Landlord's Work is not completed on or before December 31, 1997, Tenant shall have the right to terminate its obligations under this Lease by giving written notice of such Certificatetermination to Landlord on or before February 1, Lessee 1998; provided, however, that (1) such dates shall be provided with extended for a punch list period equal to the duration of any delays in construction caused by strikes, shortages or materials, acts of God or other matters not reasonably within the control of Landlord, and (2) in the event any delays in completing the Landlord's Work are as a result of change orders or other delays caused by Tenant. The foregoing dates shall be extended day for day for each such delay caused by Tenant or longer if appropriate to compensate for additional delays which were encountered on account of items enumerated in (1) above that would not otherwise have been encountered but for the Tenant-caused delays. Tenant's failure to give such notice of termination on or before February 1, 1998 (or such later date as extended pursuant to (1) or (2) above) shall constitute a waiver of such tenant improvements prior termination right with the result that February 1, 1998 (or such later date as extended pursuant to (1) or (2) above) shall become the commencement Commencement Date. Thirty (30) days after the Commencement Date, Landlord shall be deemed to have satisfactorily completed the construction of the lease termLandlord Work, and Tenant shall inspect the Premises after their substantial completion. Lessee shall set forth any manner be deemed to have waived all rights and remedies with respect to deficiencies in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B"such construction, as reasonably measured by the standards of finished, comparably priced industrial space except for (a) deficiencies in the Santa Xxxxxxx area HVAC system of which Tenant has informed the Landlord in writing not later than three hundred sixty-five (hereinafter 365) days following the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimedCommencement Date, within (b) deficiencies of any other type of which Tenant has informed Landlord, in writing, not later than thirty (30) days following commencement the Commencement Date, and (c) latent defects in the roof or structural integrity of the lease termbuilding constructed as part of the Landlord Work. Provided howeverFurther, if with respect to any portions of the Landlord's Work for which Landlord has received a guaranty or warranty from the general contractor or subcontractor performing such discrepancy is incapable of cure within such thirty (30)-day periodwork, and Lessor has commenced Tenant shall have the cure full benefit of such discrepancy within warranty or guaranty as long as Tenant gives Landlord written notice of such thirty (30)-day period, this provision shall be satisfieddefect or deficiency in a timely manner so that Landlord is capable of making a timely claim under the guaranty or warranty in question.

Construction of Tenant Improvements. Lessee understands and agrees that Lessor is currently in the process of constructing the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "“B"”. Such plans and specifications are hereby clarified as follows: SEE EXHIBITEXHIBIT “B”. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's ’s sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "“B"”, as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "“discrepancy"”). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied.

Construction of Tenant Improvements. Lessee understands Following Landlord’s approval of the Final Plans, and agrees that Lessor is currently once construction has commenced, Tenant’s contractor (selected as provided in Section 8(n)) will commence and diligently proceed with the process construction of constructing the improvements which Tenant Improvements. Tenant shall comprise use diligent efforts to cause its contractor to complete the PremisesTenant Improvements in a good and workmanlike manner in accordance with the Final Plans. Landlord shall have the right to enter upon the Premises to inspect Tenant’s construction activities following reasonable advance notice Tenant. In the course event of a Landlord Delay (as hereinafter defined) which causes Tenant to be delayed in its ability to substantially complete the Tenant Improvements and use the Premises (or portion thereof) for normal business operations, and provided Tenant does not actually use the Premises (or portion thereof) as a result of such constructionLandlord Delay, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications then Tenant shall be at Lessee's sole cost and expense, including entitled to a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as followsper day rent credit for each day of a Landlord Delay equal to: (i) fifty percent (50%) upon approval the rentable square footage of such change the effected portion of the Premises, multiplied by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises Annual Rental Rate per rentable square foot, and with such product then divided by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises365. Notwithstanding the issuance foregoing, Tenant hereby acknowledges that the Tenant Improvements will be conducted in the Premises while Tenant is in occupancy thereof and paying rent under the Lease. Tenant further acknowledges that some interruptions and/or interference with Tenant’s business may occur during the course of such CertificateTenant’s completion of the Tenant Improvements, Lessee but agrees that no interruptions or inconveniences to Tenant or its business suffered as a result of Tenant’s own completion of the Tenant Improvements shall constitute an eviction of Tenant from the Premises, whether constructive or otherwise, and Tenant shall in no event be provided with a punch list of such tenant improvements prior excused from paying the rent that it is scheduled to pay pursuant to the commencement terms of the lease termLease, except in accordance with the terms and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement conditions of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedimmediately preceding sentence.

Construction of Tenant Improvements. Lessee understands and agrees Section 2.02 of the Lease is hereby amended by incorporating the following: "Tenant hereby acknowledges that Lessor is currently the leasehold improvements to the Third Additional Space designated as Landlord's obligation in the process of constructing the improvements which shall comprise the PremisesExhibit B-8 have been completed in a satisfactory manner. In addition, Tenant has personally inspected the course Fourth Additional Space and accepts the same "AS IS" without representation or warranty by Landlord of such constructionany kind. Promptly following December 1, Lessor hereby agrees to construct 2013, Tenant shall execute Landlord's Letter of Understanding in substantially the tenant improvements set forth in the plans and specifications form attached hereto as Exhibit "B"D-2 and made a part hereof, acknowledging (a) the Fourth Additional Space commencement date, and (b) that Tenant has accepted the Fourth Additional Space. Such plans letter of understanding shall become a part of this Lease. If Tenant takes possession of and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expenseoccupies the Fourth Additional Space, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements Tenant shall be deemed substantially completed when to have accepted the City Fourth Additional Space in the manner described in this paragraph, even though the letter of Carpinteria issues a Certificate understanding provided for herein may not have been executed by Tenant. Tenant shall have the right to enter the Fourth Additional Space on July 1, 2013 in order to install fixtures, furniture, audio visual equipment, computers, cabling, kitchen equipment and art work and otherwise prepare the Fourth Additional Space for occupancy, which right shall expressly exclude making any structural modifications. During any entry prior to December 1, 2013 (a) Tenant shall comply with all terms and conditions of Occupancy for this Lease other than the Premises. Notwithstanding obligation to pay rent with respect to the issuance Fourth Additional Space, (b) Tenant shall cause its personnel and contractors to comply with the terms and conditions of such CertificateLandlord's rules of conduct (which Landlord agrees to furnish to Tenant upon request), Lessee and (c) Tenant shall not begin operation of its business in the Fourth Additional Space.Tenant acknowledges that Tenant shall be provided with a punch list of such tenant improvements prior responsible for obtaining all applicable permits and inspections relating to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedentry by Tenant."

Construction of Tenant Improvements. Lessee understands Tenant shall construct but Landlord will own (and agrees that Lessor is currently to the extent set forth in this Section 7.1 will pay for) certain improvements (the process of constructing the improvements which shall comprise "Tenant improvements") in the Premises. In The Tenant improvements for the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications Premises shall be designed and completed in accordance with this Article 7 and Article 31 below, the cost to Landlord of which shall not exceed One Hundred Nine Thousand One Hundred Forty-Three and 75/100 Dollars ($109,143.75) (i.e., $6.25 per rentable square foot of the Premises) ("T.I. Allowance"). In addition, an amount not to exceed Fifty-Two Thousand Three Hundred Eighty-Nine Dollars ($52,389) (i.e., $3.00 per rentable square foot of the Premises) shall be contributed by Landlord, at LesseeTenant's sole cost request, for construction of the Tenant Improvements and expenseshall be considered part of the T.I. Allowance; provided, including a ten percent (10%) administrative payment to Lessorthat any such additional amounts contributed will be repaid by Tenant, plus 11% interest per annum, in equal monthly installments amortized over the Initial Term of the Lease. Such additional payments will be made at the same time and in the same manner as Rent. Any costs to construct the Tenant Improvements in excess of the T.I. Allowance shall be paid for by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval Tenant. The Tenant Improvements shall consist of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy all interior improvements constructed in the Premises which are not part of the Premises Building's structure or shell and shall include by Lesseeway of illustration, floor coverings, interior partitions, doors, ceilings, lighting fixtures, wall coverings, electrical and telephone outlets. All tenant improvements The Tenant Improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided constructed in accordance with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B"prepared by Tenant's architect and approved by both Landlord and Tenant. The T.I. Allowance shall be available towards the costs of the actual, as reasonably measured by incurred costs of the standards Tenant Improvements, including the cost of finishedall labor and materials for the construction and installation of the Tenant Improvements; the cost of all permits, comparably priced industrial licenses, and fees; all amounts paid to Tenant's contractors under and pursuant to contracts for the construction and installation of the Tenant Improvements; all architectural, engineering, space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies planning, and other consultant's fees; all amounts paid for mechanical drawings, plans, specifications, shop drawings, designs, and layouts; and reasonable incidental costs related to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedforegoing.

Construction of Tenant Improvements. Lessee understands (a) Except as otherwise set forth herein, Landlord shall have no responsibility with respect to delivery of the Leased Premises except to (i) construct at Landlord's sole cost and agrees that Lessor is currently expense (except as agreed to by Tenant in any Change Order Memorandum of Agreement (as hereinafter defined)) in a good and workmanlike manner the Tenant Improvements in the process of constructing the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications Space Plan attached hereto as Exhibit B (the "BTenant Improvements". Such ) free of defects and using materials and equipment of good quality, and in accordance with all applicable laws and the Scope of Work and preliminary plans dated October 15, 2002, incorporated herein as Exhibit B-1 ("Scope of Work"), and specifications are hereby clarified with the approved Plans and Specifications (as follows: SEE EXHIBIT. Lessee has reviewed defined below) as prepared by Alliance Architecture, subject to events and approved delays due to causes beyond its reasonable control, (ii) deliver the Leased Premises in good, vacant, broom clean condition, with all such plans building systems in good working order and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; in compliance with all laws and (ii) fifty percent (50%) prior to obtain any and all approvals and permits from the appropriate governmental authorities required for the legal occupancy of the Leased Premises by Lesseeand the construction of the Tenant Improvements in accordance with applicable law. All tenant improvements Notwithstanding anything herein to the contrary, Tenant's acceptance of the Leased Premises or submission to Landlord of a written "punch list" shall not be deemed substantially completed when a waiver of Tenant's right to have defects in the City of Carpinteria issues a Certificate of Occupancy for Tenant Improvements or the PremisesLeased Premises repaired at no cost to Tenant within one year from the Commencement Date. Notwithstanding At anytime within one year from the issuance of Commencement Date, Tenant shall give notice to Landlord whenever any such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease termdefect becomes reasonably apparent, and Landlord shall inspect the Premises after their substantial completionrepair such defect as soon as practicable. Lessee On or before October 28, 2002, (i) Landlord shall prepare and submit to Tenant a set forth any manner in which Lessee claims that the Premises to do not conform to the of plans and specifications and/or construction drawings (the "Plans and Specifications") covering all work to be performed by Landlord in constructing and installing the Tenant Improvements, which shall be based on and be consistent with the Space Plan and Scope of Work attached hereto as Exhibit "B", as reasonably measured by B-1 and (ii) Landlord shall provide Tenant with a xxxx chart detailing the standards of finished, comparably priced industrial space in daily construction schedule for the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement construction of the lease termTenant Improvements. Provided however, if any such discrepancy is incapable Tenant shall have five (5) business days after receipt of cure within such thirty (30)-day period, the Plans and Lessor has commenced Specifications in which to review the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied.Plans and

Construction of Tenant Improvements. Lessee understands I. Landlord's Work. ---------------- Tenant has personally inspected the Leased Premises and agrees accepts the same "AS IS" without representation or warranty by Landlord of any kind and with the understanding that Lessor is currently Landlord shall have no responsibility with respect thereto except to construct in a good and workmanlike manner the improvements described on EXHIBIT B attached hereto and made a part hereof (the "Tenant Improvements"). Notwithstanding the foregoing to the contrary, based upon Landlord's inspection of the Building systems servicing the Leased Premises prior to the Commencement Date, Landlord represents that as of the Commencement Date the building systems servicing the Leased Premises are in good working order and repair. Within five (5) days of Landlord's Substantial Completion of the Tenant Improvements, Landlord and Tenant shall complete a walk-through of the Leased Premises at which time Tenant shall notify Landlord in writing of any deficiencies in the process Tenant Improvements ("Punch List Items"). Landlord shall promptly commence and diligently proceed until the Punch List Items are completed or remedied. Promptly following the Commencement Date, Tenant shall execute Landlord's Letter of constructing Understanding in substantially the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications form attached hereto as Exhibit "B"EXHIBIT C and made a part hereof, acknowledging, among other things, that Tenant has accepted the Leased Premises. Such plans If Tenant takes possession of and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee occupies the Leased Premises, then, subject to such plans and specifications shall be at Lessee's sole cost and expensethe foregoing paragraph, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements Tenant shall be deemed substantially completed when to have accepted the City of Carpinteria issues a Certificate of Occupancy for Leased Premises and that the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement condition of the lease term, Leased Premises and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner Building was at the time satisfactory and in which Lessee claims that conformity with the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards provisions of finished, comparably priced industrial space this Lease in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedall respects.

Construction of Tenant Improvements. Lessee understands Tenant has personally inspected the Leased Premises and accepts the same "AS IS" without representation or warranty by Landlord of any kind and with the understanding that Landlord shall have no responsibility except to perform and complete the work on the tenant finish improvements designated as Landlord's obligations in the attached Exhibit B. The rental provided herein, includes the following tenant improvements to the Leased Premises: (1) repaint the interior with building standard quality paint; (2) replace existing carpet with building standard quality carpet, except that area that is currently improved with raised computer flooring; (3) replace tile in office area with building standard quality tile, except that area that is currently improved with raised computer flooring; (4) re-key all exterior doors of Leased Premises; (5) replace all damaged ceiling tiles in Leased Premises; (6) repair or replace damaged doors in Leased Premises; (7) install four (4) building standard doors and door hardware from hallway 145 to Rooms 140, 142, 143 and 144 as shown on Exhibit B; and (8) make any other repairs or replacements necessary to put the Leased Premises in leasable condition consistent with Landlord's standard of "finished" space. As additional consideration, Landlord shall provide to Tenant the sum of One Hundred Forty Two Thousand Three Hundred Twenty Eight and 00/100 ($142,328.00) Dollars to be used by Tenant for the construction of additional tenant improvements and fixtures to the Leased Premises. The Allowance will be paid to Tenant in no more than three (3) draws. Each draw shall be paid within fifteen (15) days after Tenant shall provide to Landlord evidence of the cost of the improvements or fixtures installed or constructed through the date of the draw request. The form shall be signed by Tenant and its contractor and shall be accompanied by such documentation as is reasonably required by Landlord to verify and ensure that the work shown on the draw request has been completed. All construction work done by Tenant in the Leased Premises shall be pursued diligently to completion and shall be performed in a good and workmanlike manner, and in compliance with all governmental regulations. Tenant covenants and agrees that Lessor is currently in all contractors, subcontractors and other persons or entities performing work for Tenant at the process of constructing the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: Leased Premises will carry (i) fifty percent (50%) upon approval of such change by Lessor; liability insurance in amounts acceptable to Landlord, in Landlord's reasonable opinion, and (ii) fifty percent (50%) prior to occupancy of worker's compensation insurance in the Premises amounts required by Lesseelaw. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease termTenant hereby indemnifies Landlord against, and shall inspect keep all portions of the Premises after their substantial completionLeased Premises, the Building and the Land free from liens for any work performed, material furnished or obligations incurred by Tenant. Lessee Should any liens or claims be filed against all or any portion of the Leased Premises, the Building or the Land by reason of Tenant's acts, omissions or work performed by any person or entity on behalf of Tenant, Tenant shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies cause same to be reasonably claimed, discharged by bond or otherwise within thirty (30) days following commencement of the lease termnotice thereof. Provided however, if If Tenant fails to cause any such discrepancy is incapable lien or claim to be discharged within the required time, Landlord may cause same to be discharged and may make any payment that Landlord, in its reasonable judgment, considers necessary, desirable or proper in order to do so. All amounts paid by Landlord shall bear interest at the lower of cure within such thirty (30)-day periodi) eighteen percent (18%) per annum, or (ii) the highest rate permitted under applicable law, from the date of payment by Landlord and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedpayable by Tenant to Landlord upon written demand. Notwithstanding the foregoing, Tenant shall be required to obtain Landlord's prior written consent for any improvements, alterations, additional or installments upon the Leased Premises as set forth in Section 7.03 herein.

Construction of Tenant Improvements. Lessee understands Ninety (90) days prior to the Commencement Date, Landlord will deliver possession to Tenant of the Premises for construction of the Tenant Improvements as provided herein in its current “as is” and agrees that Lessor is currently “where is” condition. Delivery of the Premises to Tenant by Landlord shall be with all structural systems, roof systems, plumbing systems, window systems, window coverings, new ceiling grid, tiles (unless removed by Landlord pursuant to Section 14 hereof), elevator systems, restrooms, the base Building HVAC mechanical systems, the base Building electrical systems and the fire and life safety systems (“Base Building Premises”), free from latent defects and structural defects, in good and proper working order and in full compliance with all Laws, applicable building codes and ordinances which govern the process use and occupancy of constructing the improvements which shall comprise the Premises. In the course of such constructionoffice buildings in Denver, Lessor hereby agrees Colorado to allow Tenant to construct the tenant improvements Tenant Improvements. Upon such delivery date, Tenant shall have a license thereafter to perform construction of the Tenant Improvements, as further provided in this Exhibit C, such license to be upon all of the terms of this Lease, except that no Monthly Base Rent or Tenant’s Percentage of Operating Expenses, Taxes, Insurance Costs and Utilities Costs shall be due and payable. The Landlord shall provide all utilities (electrical, HVAC and lighting) during the construction of the Tenant Improvements at no cost to Tenant. Taking of possession by Tenant shall establish that the Premises are in good and satisfactory condition when possession was so taken, subject to latent defects that could not reasonably have been discovered upon diligent inspection upon taking possession and that are identified by Tenant to Landlord in writing within six (6) months after the date of possession by Tenant. Tenant acknowledges that no representations as to the condition of the Premises have been made by Landlord, unless such are expressly set forth in the plans and specifications attached hereto as Exhibit "B"this Lease. Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any Tenant shall make no changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of Plans and Specifications or the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space work reflected in the Santa Xxxxxxx area (hereinafter Plans and Specifications without the "discrepancy")consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed. Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied.EXHIBIT C

Construction of Tenant Improvements. Lessee understands and agrees that Lessor a. Lessor, as soon as this Agreement is currently in the process of constructing the improvements which executed, shall comprise the Premises. In the course of such constructionmake arrangements for Reno Contracting, Lessor hereby agrees Inc. (“Contractor”) to construct the tenant improvements set forth Tenant Improvements as indicated on the Plans as soon as commercially possible and consistent with industry custom and practice. Although Lessor will enforce the contract with Contractor to have the Tenant Improvements completed as soon as reasonably possible, Lessor shall not be liable for delay in the plans and specifications attached hereto construction of the Tenant Improvements that cause the date of Substantial Completion to occur after December 31, 2008 (as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all extended by delays due to Lessee’s breach of its obligations hereunder or due to a delay arising from a Change Order requested by Lessee) except to the extent that such plans and specifications. Any changes or additions made delay is caused by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent Lessor’s failure to respond to Schematic Drawings or Plans within three (50%3) upon approval business days of such change by their submission to Lessor; and , (ii) fifty percent (50%) prior to occupancy any willful misconduct by Contractor which actually delays completion of the Premises by LesseeTenant Improvements, and (iii) Lessor’s gross negligence or intentional misconduct. All Lessor shall direct Contractor to secure independent bids from three (3) subcontractors mutually acceptable to Lessor and Lessee (to the extent that such bids are reasonably available) for each trade (except for HVAC, fire safety, plumbing and electrical, for which the same subcontractors that completed lobby and core work and first floor tenant improvements at the Building will perform the work for such items in the Premises). Unless mutually agreed by Lessor and Lessee, the lowest bidding subcontractor shall be deemed substantially completed when retained by Contractor to perform the City of Carpinteria issues a Certificate of Occupancy for the Premiseswork. Notwithstanding the issuance of such Certificate, Lessee shall be provided with the bid packages submitted for bid and, based on the winning bids, a punch list budget of such tenant improvements prior Total Costs (defined below) shall be prepared by Contractor and submitted to Lessor and Lessee for final approval (the commencement “Approved Budget”). In connection with its approval of the lease termApproved Budget, subject to Landlord’s Minimum Standard, Lessee shall have the right to eliminate or modify any elements of the Tenant Improvements and cause the Total Cost estimate to be revised accordingly, however Lessee shall inspect be solely liable for any additional cost or delay in completion of the Premises after their substantial completionTenant Improvements resulting therefrom. Lessee shall set forth any manner in which Lessee claims that have the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement benefit of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and lowest pricing Contractor provides to Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedfor comparable construction on other properties owned by Lessor or its affiliated companies.

Construction of Tenant Improvements. Lessee understands Upon approval by Landlord and agrees that Lessor is currently Tenant of Tenant’s Final Plans, Landlord shall enter into a construction contract with the Contractor, which contract shall be either a fixed price contract or a contract for the cost of the work plus a fee. The Contractor shall proceed with reasonable diligence to cause the Tenant Improvements to be Substantially Completed on or prior to the Commencement Date or the Must Take Commencement Date, as applicable. The Tenant Improvements shall be deemed to be “Substantially Completed” when: (a) the Tenant Improvements in the process Premises are completed in compliance with Tenant’s Final Plans, except for (i) furnishing details, (ii) minor omissions, defects or mistakes, (iii) decorations, (iv) mechanical adjustments and (v) other matters of constructing the improvements which type typically included on “punch lists”; and (b) Tenant has received temporary inspection approvals relating to the Tenant Improvements in the Premises from the local building department having jurisdiction over the Tenant Improvements. The terms “Substantial Completion” and “Substantially Complete” shall comprise refer to and include the Premisesdefinition of Substantially Completed as set forth above. In Following Substantial Completion of the course Tenant Improvements and before Tenant takes possession of such constructionthe Premises (or as soon thereafter as may be reasonably practicable and in any event within 30 days after Substantial Completion), Lessor hereby agrees Landlord, Tenant and the Contractor shall inspect the Premises and collectively prepare a “punch list” of agreed items remaining to construct be completed. The Contractor shall complete the tenant improvements items set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", soon as reasonably measured by possible. Tenant shall cooperate with and accommodate Landlord and the standards of finished, comparably priced industrial space Contractor in completing the Santa Xxxxxxx area (hereinafter items on the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedpunch list.

Construction of Tenant Improvements. Lessee understands At Lessor's sole cost and agrees that expense, Lessor is currently in the process of constructing shall construct the improvements which shall comprise the Premises. In the course of such construction("Tenant Improvements") described in that certain letter from Xxxxx X. Xxxxx & Sons, Lessor hereby agrees Inc. to construct the tenant improvements set forth in the plans and specifications VidaMed Inc., dated July 13, 1994, attached hereto as Exhibit "B"" and incorporated by reference herein. Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all The Tenant Improvements shall be constructed in accordance with such attached plans and specifications. Any changes or additions made by Lessee to such plans , in a good and specifications shall be at Lessee's sole cost workmanlike manner, free of defects and expenseusing new materials and equipment of good quality and in compliance with all Applicable Law (including, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval without limitation, the Americans with Disabilities Act of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"1990). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within Within thirty (30) days following commencement after the Commencement Date, Lessee shall have the right to submit a written "punchlist" to Lessor, setting forth any defective items to be corrected. Notwithstanding anything to the contrary contained in this Lease or in the foregoing, Lessee's acceptance of the lease termPremises or submission of a "punchlist" shall not be deemed a waiver of Lessee's right to have defects in the Tenant Improvements or the Premises repaired at Lessor's sole expense. Provided however, if Lessee shall give notice to Lessor whenever any such discrepancy is incapable of cure within such thirty (30)-day perioddefect becomes reasonably apparent, and Lessor has commenced shall repair such defect as soon as practicable. Lessor also hereby assigns to Lessee all warranties with respect to the cure Tenant Improvements, including, without limitation, warranties which would reduce Lessee's maintenance obligations hereunder, and shall cooperate with Lessee to enforce such warranties. LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. IF THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR SUBMISSION TO YOUR ATTORNEY FOR HIS APPROVAL. FURTHER, EXPERTS SHOULD BE CONSULTED TO EVALUATE THE CONDITION OF THE PROPERTY AS TO THE POSSIBLE PRESENCE OF ASBESTOS, STORAGE TANKS OR HAZARDOUS SUBSTANCES. NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY THE REAL ESTATE BROKERS(S) OR THEIR AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES; THE PARTIES SHALL RELAY SOLELY UPON THE ADVICE OF THEIR OWN COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE, IF THE SUBJECT PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA, AN ATTORNEY FROM THE STATE WHERE THE PROPERTY IS LOCATED SHOULD BY CONSULTED. The parties hereto have executed this Lease at the place on the dates specified above to their respective signatures. Executed at_________________________ Executed at__________________________ On__________________________________ On___________________________________ By: LESSOR By: LESSEE The Xxxxx Mountain View Joint Venture ZoMed International ------------------------------------- ------------------------------------- By:_________________________________ By:__________________________________ Name Printed: Xxxxx Xxxxx Name Printed: Xxxx X. Xxxxxxx ---------------------- ----------------------- Title: Managing Joint Venturer Title: Executive Vice President ----------------------------- ------------------------------ Address: 0000 Xxxx Xxxxxxxxx Address: 000 X. Xxxxxxxxx Xxxxxxxxx --------------------------- ---------------------------- Xxxx Xxxx, XX 00000 Xxxxxxxx Xxxx, XX 00000 --------------------------- ---------------------------- Phone: (000) 000-0000 Phone: (000) 000-0000 --------------------------- ---------------------------- -41- EXHIBIT A --------- VidaMed, Inc., Scionex Corporation and ZoMed International do not use hazardous materials as of such discrepancy within such thirty the signing of the attached lease. XXXX MEDICAL SYSTEMS, INC. June 22, 1999 Xxxx Xxxxxxxx Cohesive Technology Solutions, Inc. 000 X. Xxxxxxxxx Xxxx. Xxxxx X Xxxxxxxx Xxxx, XX 00000 Subject: Extension of sublease of 000 Xxxxx Xxxxxxxxx Xxxxxxxxx, Xxxxxxxx Xxxx, XX 00000 Dear Alex, This letter shall serve as the formal agreement to extend the sublease between XXXX Medical Systems, Inc. (30)-day period"Sublessor") and Computer LANscapes, Inc. (now Cohesive Technology Solutions, Inc.) ("Sublessee"), said sublease dated 13 January 1997. Reference is made, also, to Addendum One dated as of 13 January 1997 and Addendum Number Two, dated 19 February 1999. The standard sublease agreement as amended by Addendum One and Addendum Two and further described in this provision letter shall be satisfiedreferred to as the "Sublease Agreement". All capitalized terms are defined in the sublease.

Construction of Tenant Improvements. Lessee understands Until Tenant approves the Final Plans, Landlord will be under no obligation to cause the construction of any of the Tenant Improvements. Following Tenant’s approval of the Final Plans, Landlord’s contractor will commence and diligently proceed with the construction of the Tenant Improvements, subject to Tenant Delays (as defined in Section 3A of the Lease) and Force Majeure Delays (as described in Section 9 below). Landlord warrants and guarantees all labor, material and services employed and furnished by or to it in performing the Tenant Improvements and agrees that Lessor is currently in promptly to amend and make good, upon demand by Tenant, and at Landlord’s expense, any and all defects due to imperfect workmanship, materials and damages resulting therefrom, to the process reasonable approval and acceptance of constructing Tenant, provided such defects and deficiencies are discovered within three (3) years following the improvements which Suite 350 Commencement Date. Should Landlord refuse or neglect to proceed at once with the correction of rejected or defective materials or workmanship, after receiving notice to do so, then Tenant, after reasonable prior written notice to Landlord and an opportunity to cure, shall comprise have the Premises. In right and power to have the course defects, remedies or changes made at the expense of such constructionLandlord, Lessor hereby and Landlord agrees to construct pay Tenant on demand any and all loss or expense paid or incurred by Tenant in remedying such defects, and making such changes, together with interest on said total sum at the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a rate of ten percent (10%) administrative payment per annum until paid, plus all court costs and attorney fees incurred in collection. Furthermore, Landlord agrees to Lessor. Such additional payments shall be paid by Lessee transfer on a non-exclusive basis to Lessor Tenant all manufacturer’s product and equipment warranties in so far as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior same pertain to the commencement of the lease term, Tenant Improvements and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedare assignable.

Construction of Tenant Improvements. Lessee understands Landlord’s contractor shall commence and agrees diligently proceed (using commercially reasonable efforts) with the construction of the Initial Tenant Improvements promptly following mutual execution and delivery of this Lease and receipt of permits, and shall endeavor (using commercially reasonable efforts) to substantially complete the Initial Tenant Improvements by the Estimated Initial Premises Delivery Date, subject to Tenant Delays (as described in Section 4 below) and Force Majeure Delays (as described in Section 5 below). Landlord’s contractor shall commence and diligently proceed (using commercially reasonable efforts) with the construction of the Must Take Tenant Improvements, and shall endeavor (using commercially reasonably efforts) to substantially complete the Must Take Tenant Improvements by the Estimated Must Take Premises Delivery Date, subject to Tenant Delays (as described in Section 4 below) and Force Majeure Delays (as described in Section 5 below); provided, however, that Lessor is currently in no event shall Landlord be obligated to commence construction for the process Must Take Premises prior to the date upon which the current tenant of constructing the improvements which shall comprise Must Take Premises fully vacates the Must Take Premises. In the course of such construction, Lessor hereby agrees but subject to construct the tenant improvements Tenant’s rights set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy Section 1.1 of the Premises Lease arising from Landlord’s failure to complete construction of the Must Take Tenant Improvements by Lesseethe outside delivery date set forth therein. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to Promptly upon the commencement of the lease termapplicable Tenant Improvements, Landlord shall furnish Tenant with a construction schedule letter setting forth the projected completion dates therefor and showing the deadlines for any actions required to be taken by Tenant during such construction, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises Landlord may from time to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure time during construction of such discrepancy within Tenant Improvements modify such thirty (30)-day period, this provision shall be satisfiedschedule.

Construction of Tenant Improvements. Lessee understands Landlord shall obtain all state and agrees that Lessor is currently in local licenses, permits and approvals (whether governmental or non‑governmental) required to construct the process Tenant Improvements and for Tenant's occupancy of constructing the improvements which shall comprise the Premises. In Landlord shall provide access to the course General Contractor for Construction of the Tenant Improvements and to the extent such constructionaccess requires entry through space occupied by other tenants, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all Landlord shall provide for such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be access at Lessee's its sole cost and expense. The Landlord shall engage, including subject to Tenant’s reasonable approval, a ten percent general contractor to construct the Tenant Improvements (10%) administrative payment to Lessorthe “General Contractor”). Such additional payments The General Contractor shall construct and install the Tenant Improvements in accordance with the Plans which expense shall be deducted from the Tenant Improvement Allowance. The Tenant Improvements shall be delivered via Associated General Contractors (AGC) Guaranteed Maximum Price Contract (the "Contract") with Liquidated Damages of $500.00 per day for each day of delay in achieving in substantial completion beyond the date specified in the Contract, which date shall be no later than October 1, 2010, and a payment and performance bond. Any Liquidated Damages (less cost of collection) paid to Landlord shall accrue to the Tenant; provided, however, any paid Liquidated Damages for any Tenant Delay shall accrue to Landlord. The General Contractor shall obtain at least three (3) bids for all major trade work at the Premises. Landlord will work with the General Contractor to complete the Tenant Improvements by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval the Commencement Date. All contracts with vendors and subcontractors for construction of such change the Tenant Improvements will be negotiated by Lessor; and (ii) fifty percent (50%) prior to occupancy the General Contractor. All work performed in 41 connection with the construction of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when performed in a good and workmanlike manner, in accordance with all Applicable Laws and the City final approved Plans. If materials are not readily available, require quick ship charges, or require substitution, the Tenant will be given notice and the opportunity to select alternate materials. Landlord shall insure that the Architect conducts a periodic review (a minimum of Carpinteria issues once every two weeks) of the progress of construction to ensure compliance with the Plans. Tenant may from time to time request in writing changes to the Plans (a Certificate “Change Order”), subject to Landlord’s consent, which shall not be unreasonably withheld. Landlord shall cause Contractor to provide an estimate of Occupancy for any change in the PremisesConstruction Cost and/or Schedule. Notwithstanding Tenant shall have the issuance right to elect whether or not to proceed with the Change Order within five (5) business days after receipt of such Certificateestimate. Upon such approval by Tenant, Lessee or confirmation by Landlord that the Change Order will not result in any change in cost and/or Schedule, Landlord shall be provided with a punch list implement the Change Order as part of such tenant improvements prior the Tenant Improvements. Tenant acknowledges that the following items may result in changes to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied.Budget and/or Schedule:

Construction of Tenant Improvements. Lessee understands At Lessor's sole cost and agrees that expense, Lessor is currently in the process of constructing shall construct the improvements which shall comprise the Premises. In the course of such construction("Tenant Improvements") described in that certain letter from Xxxxx X. Xxxxx & Sons, Lessor hereby agrees Inc. to construct the tenant improvements set forth in the plans and specifications VidaMed Inc., dated July 13, 1994, attached hereto as Exhibit "B"" and incorporated by reference herein. Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all The Tenant Improvements shall be constructed in accordance with such attached plans and specifications. Any changes or additions made by Lessee to such plans , in a good and specifications shall be at Lessee's sole cost workmanlike manner, free of defects and expenseusing new materials and equipment of good quality and in compliance with all Applicable Law (including, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval without limitation, the Americans with Disabilities Act of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"1990). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within Within thirty (30) days following commencement after the Commencement Date, Lessee shall have the right to submit a written "punchlist" to Lessor, setting forth any defective items to be corrected. Notwithstanding anything to the contrary contained in this Lease or in the foregoing, Lessee's acceptance of the lease termPremises or submission of a "punchlist" shall not be deemed a waiver of Lessee's right to have defects in the Tenant Improvements or the Premises repaired at Lessor's sole expense. Provided however, if Lessee shall give notice to Lessor whenever any such discrepancy is incapable of cure within such thirty (30)-day perioddefect becomes reasonably apparent, and Lessor has commenced shall repair such defect as soon as practicable. Lessor also hereby assigns to Lessee all warranties with respect to the cure of Tenant Improvements, including, without limitation, warranties which would reduce Lessee's maintenance obligations hereunder, and shall cooperate with Lessee to enforce such discrepancy within such thirty warranties. LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. IF THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR SUBMISSION TO YOUR ATTORNEY FOR HIS APPROVAL. FURTHER, EXPERTS SHOULD BE CONSULTED TO EVALUATE THE CONDITION OF THE PROPERTY AS TO THE POSSIBLE PRESENCE OF ASBESTOS, STORAGE TANKS OR HAZARDOUS SUBSTANCES. NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY THE REAL ESTATE BROKERS(S) OR THEIR AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES; THE PARTIES SHALL RELAY SOLELY UPON THE ADVICE OF THEIR OWN COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE, IF THE SUBJECT PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA, AN ATTORNEY FROM THE STATE WHERE THE PROPERTY IS LOCATED SHOULD BY CONSULTED. The parties hereto have executed this Lease at the place on the dates specified above to their respective signatures. Executed at Palo Alto, CA Executed at Zomed/Mountain View, CA ----------------------------- ---------------------------- On February 13, 1995 On February 13, 1995 ----------------------------------- ---------------------------------- By: LESSOR By: LESSEE The Xxxxx Mountain View Joint Venture ZoMed International ------------------------------------- ------------------------------------ By: /s/: Xxxxx Xxxxx By: /s/: Xxxx X. Xxxxxxx ---------------------------------- --------------------------------- -32- Name Printed: Xxxxx Xxxxx Name Printed: Xxxx X. Xxxxxxx Title: Managing Joint Venturer Title: Executive Vice President Address: 0000 Xxxx Xxxxxxxxx Address: 000 X. Xxxxxxxxx Xxxxxxxxx Palo XXxx.XX 94304 Xxxxxxxx Xxxx, XX 00000 Phone: (30)-day period4l5) 000-0000 Xhone: (000) 000-0000 EXHIBIT "B" Xxxxx X. Xxxxx & Sons, this provision shall be satisfied.Inc. General Contractors 0000 Xxxx Xxxxxxxxx Xxxx Xxxx, Xxxxxxxxxx 00000 (415) 321-8432 July 13, 1994 VIDAMED 0000 Xxxxxx Xxxx Xxxxx Xxxx, XX 00000 RE: Preliminary Cost Estimate Qualifications All work is based on Zomed/Scionex floor plan, 1 sheet dated 7/1/94

Construction of Tenant Improvements. Lessee understands Until Tenant selects the Standard ----------------------------------- colors and agrees that Lessor is currently in styles for the process Preliminary Tenant Improvement Work, approves the Preliminary Work Cost Statement and pays Landlord the amount by which the Preliminary Work Cost Statement exceeds the Preliminary Allowance, if any, Landlord will be under no obligation to cause the construction of constructing any of the improvements which shall comprise the PremisesPreliminary Tenant Improvements. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at LesseeFollowing Tenant's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; the Preliminary Work Cost Statement described in Subparagraph 3(b) above and (ii) fifty percent (50%) prior to occupancy upon Tenant's payment of the Premises total amount by Lesseewhich such Preliminary Work Cost Statement exceeds the Preliminary Allowance, if any, Landlord's contractor will commence and diligently proceed with the construction of the Preliminary Tenant Improvements, subject to Tenant Delays (as described in Paragraph 8 below) and Force Majeure Delays (as described in Paragraph 9 below). All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to Promptly upon the commencement of the lease termPreliminary Tenant Improvement Work, Landlord will furnish Tenant with a construction schedule letter setting forth the projected completion dates therefor and showing the deadlines for any actions required to be taken by Tenant during such construction, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises Landlord may from time to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement time during construction of the lease term. Provided however, if any Preliminary Tenant Improvements modify such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedschedule.

Construction of Tenant Improvements. Lessee understands and agrees that Lessor is currently (a) PRELIMINARY PLANS/WORKING PLANS. Landlord has retained Donaxx X. Xxxxxxx, X.I.A. to prepare preliminary space plans ("Preliminary Plans") to be utilized in the process preparation of constructing final working drawings and specifications for tenant improvements to the improvements which Premises ("Tenant Improvements"). The Preliminary Plans have been completed and delivered to Landlord and are attached hereto as "Exhibit C." Within five (5) days after execution of the Lease, Landlord shall comprise return same to Tenant marked and accompanied by comments and such required revisions as are reasonable under the Premisescircumstances. In Within five (5) days thereafter, Tenant shall submit two (2) sets of revised Preliminary Plans, revised to reflect review and approval. Promptly following Landlord's approval of the course Preliminary Plans, Landlord shall cause its architect to prepare and submit two (2) copies of such constructionworking drawings and specifications ("Working Plans") to Tenant for its review and approval. Tenant shall advise Landlord within five (5) days of Tenant's receipt of the Working Plans of any requested revisions. Immediately upon receipt of said comments, Lessor hereby agrees Landlord shall make all approved revisions to the Working Plans and submit two (2) copies thereof to Tenant for its final review and approval. Concurrently with the above review and approval process, Landlord shall submit all plans and specifications to the City and other applicable governmental agencies in an attempt to expedite City approval and issuance of all necessary permits and licenses to construct the tenant improvements set forth in Tenant Improvements as shown on the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedWorking Plans.

Construction of Tenant Improvements. Lessee understands Landlord shall have no responsibility except to perform and agrees that Lessor is currently in the process of constructing the improvements which shall comprise the Premises. In the course of such constructioncomplete, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at LesseeLandlord's sole cost and expense, including the work on the tenant finish improvements described in THE PLANS AND SPECIFICATIONS WHICH HAVE BEEN MUTUALLY AGREED UPON BY BOTH LANDLORD AND TENANT AND ATTACHED HERETO AS EXHIBIT B, subject to events and delays due to causes beyond its reasonable control. Tenant agrees that all work on any change orders to the initial tenant finish improvements shall be performed by Duke Construction Limited Partnership (DCLP) or a subsidiary or affiliate of Landlord which shall receive a cost plus ten percent (10%) administrative payment construction management fee, exclusive of general conditions, as Landlord's construction manager or general contractor; provided, however, that the construction management fee to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All charged for any subsequent tenant finish improvements shall be deemed substantially completed when an amount equal to the City of Carpinteria issues a Certificate of Occupancy construction management fee then being charged by DCLP and other reputable and experienced contractors in the Columbus, Ohio Industrial Market for the Premisescomparable improvements performed in comparable class A INDUSTRIAL PROPERTIES. Notwithstanding the issuance of such Certificate, Lessee ANY COSTS FOR TENANT FINISH IMPROVEMENTS WHICH EXCEED THE SCOPE OF THOSE DESCRIBED ON EXHIBIT B shall be provided with a punch list the sole responsibility of Tenant. Tenant shall reimburse Landlord for such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, excess costs within thirty (30) days following commencement of Tenant's receipt of an invoice for the same. Landlord hereby agrees to warrant all work performed by Landlord within the Leased Premises for a period of twelve (12) months from the Commencement Date (the "Warranty Period"). After the expiration of the lease term. Provided howeverWarranty Period, Landlord shall assign to Tenant all warranties (if any such discrepancy is incapable assignable) from subcontractors and material suppliers for materials, workmanship, fixtures or equipment installed by Landlord in the Leased Premises which warranties continue in effect after the expiration of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedWarranty Period.

Construction of Tenant Improvements. Lessee understands and agrees that Lessor is currently in the process of constructing the improvements which shall comprise the Premises. In the course of such construction, Lessor hereby agrees to construct the tenant improvements set forth in the plans and specifications attached hereto as Exhibit "“B"”. Such plans and specifications are hereby clarified as follows: SEE EXHIBITEXHIBIT “B”. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's ’s sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall sha11 be deemed substantially completed when the City of Carpinteria issues a Certificate certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "“B"”, as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx Bxxxxxx area (hereinafter the "“discrepancy"”). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days 30)-days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day 30) day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied.

Construction of Tenant Improvements. Lessee understands and agrees that Lessor Section 2.02 of the Lease is currently in hereby amended by incorporating the process of constructing the improvements which shall comprise the Premises. In the course of such constructionfollowing: "Commencing December 1, Lessor 2018, Landlord hereby agrees to construct provide Tenant with an allowance in an amount equal to Twenty Seven Thousand One Hundred Ninety Two and 00/100 Dollars ($27,192.00) ("First Additional Space Allowance") for tenant's use in constructing mutually agreed upon tenant improvements in the First Additional Space which shall be performed in accordance with Section 7.03 of the Lease. Any portion of the First Additional Space Allowance not utilized on or before November 30, 2019 shall be forfeited. Landlord hereby agrees that Tenant shall have access to the Woolpert Space and to the First Additional Space on September 1, 2018 for constructing the tenant improvements set forth and otherwise prepare the Woolpert Space and the First Additional Space for occupancy. During such entry (a) Tenant shall comply with all terms and conditions of this Lease other than the obligation to pay rent, and (b) Tenant shall cause its personnel and contractors to comply with the terms and conditions of Landlord's rules of conduct (which Landlord agrees to furnish to Tenant upon request). Commencing December 3, 2020, Landlord hereby agrees to provide Tenant with an allowance in an amount equal to Seven Thousand Nine Hundred Twelve and 00/100 Dollars ($7,912.00) ("Second Additional Space Allowance") for tenant's use in constructing mutually agreed upon tenant improvements in the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specificationsSecond Additional Space which shall be performed in accordance with Section 7.03 of the Lease. Any changes portion of the Second Additional Space Allowance not utilized on or additions made by Lessee to such plans and specifications before December 2, 2021 shall be at Lesseeforfeited. In addition, commencing July 1, 2025, Landlord hereby agrees to provide Tenant with an allowance in an amount equal to Three Hundred Three Thousand Nine Hundred and 00/100 Dollars ($303,900.00) ("Landlord's sole cost and expenseAllowance") to be used towards mutually agreed upon tenant improvements in the Leased Premises. Any portion of Landlord's Allowance not utilized on or before June 30, including a ten percent (10%) administrative payment to Lessor. Such additional payments 2026 shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit forfeited."B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied.

Construction of Tenant Improvements. Lessee understands Tenant shall construct but ----------------------------------- Landlord will own (and agrees that Lessor is currently to the extent set forth in this Section 7.1 will pay for) certain improvements (the process of constructing the improvements which shall comprise "Tenant Improvements") in the Premises. In The Tenant Improvements for the course Premises shall be designed and completed in accordance with this Article 7 and Article 31 below, the cost to Landlord of which shall not exceed Four Hundred Three Thousand Six Hundred Dollars ($403,600) (i.e., $20 per rentable square foot of the Premises) ("T.I. Allowance"). As part of the Tenant Improvements, Tenant shall use the T.I. Allowance to pay for twenty-five percent (25%) of the costs of the initial upgrade by Landlord of the Building's electrical power system, such constructionthat the Premises will be served with 1400 amps of 277/480V 3 phase power in accordance with Section 19.1 below, Lessor hereby agrees however, in no case shall such amount paid by Tenant exceed Fifty-five Thousand Dollars ($55,000). Any costs to construct the tenant Tenant Improvements (including any demolition of current improvements) in excess of the T.I. Allowance shall be paid for by Tenant. The Tenant Improvements shall consist of all interior demolition and improvements set forth constructed in the Premises which are not part of the Building's structure or shell and shall include by way of illustration, floor coverings, interior partitions, doors, ceilings, lighting fixtures, wall coverings, electrical and telephone outlets. The Tenant Improvements shall be constructed in accordance with plans and specifications prepared by Tenant's architect and approved by both Landlord and Tenant pursuant to Article 31 of this Lease. Except as otherwise provided herein, the T.I. Allowance shall be available towards the costs of the actual, incurred costs of the Tenant Improvements, including the cost of all labor and materials for the construction and installation of the Tenant Improvements; the cost of demolition work; the cost of all permits, licenses, and fees; all amounts paid to Tenant's contractors under and pursuant to contracts for the construction and installation of the Tenant Improvements; all architectural, engineering, space planning, and other consultant's fees; all amounts paid for mechanical drawings, plans, specifications, shop drawings, designs, and layouts; and reasonable incidental costs related to the foregoing. The foregoing notwithstanding, Landlord shall cause to be constructed, at Landlord's cost, a demising wall for the Premises as shown on Exhibit A attached hereto as Exhibit (the "BDemising Wall"), on or before October 15, 1999. Such plans Tenant acknowledges that Landlord has already provided, at Landlord's cost, a primary lobby and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications shall be at Lessee's sole cost and expense, including a ten percent (10%) administrative payment to Lessor. Such additional payments shall be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and (ii) fifty percent (50%) prior to occupancy of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy entry door for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfied.

Construction of Tenant Improvements. All improvements not included ----------------------------------- within the scope of the Building Shell shall be deemed "Tenant Improvements." Lessor, using the General Contractor, shall construct the Tenant Improvements and shall contribute the Tenant Improvement Allowance towards the payment of same and Lessee understands shall pay all costs associated with same in excess of the Tenant Improvement Allowance. Notwithstanding the foregoing, Lessee may select a general contractor other than Lessor's General Contractor to construct the Tenant Improvements by giving written notice to Lessor on or before April 1, 2000, provided that (i) such general contractor has sufficient financial strength and agrees that Lessor is currently experience in constructing first class quality improvements of the type to be constructed in the process Premises to reasonably satisfy Lessor and any lender whose loan is secured by the Project or any part thereof and, (ii) Lessee agrees in such notice that the Tenant Improvements identified on Exhibit N hereto as "Early Construction Improvements" shall be constructed by Lessor's General Contractor to facilitate construction of constructing the improvements balance of the Tenant Improvements by the Lessee selected general contractor (that the Early Construction Improvements shall retain concurrent status as Tenant Improvements, the cost of which shall comprise is to be charged to the Premises. In the course of Tenant Improvement Allowance), and (iii) such constructiongeneral contractor is ready, Lessor hereby willing and able and agrees to construct the tenant improvements set forth Tenant Improvements in accordance with Lessor's General Contractor's construction schedule, and (iv) any failure by such Lessee selected general contractor to construct the plans and specifications attached hereto as Exhibit "B". Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications Tenant Improvements in accordance with Lessor's General Contractor's construction schedule shall be at LesseeLessee Delay. If Lessor's sole cost and expenseGeneral Contractor constructs the Tenant Improvements, including or if Lessee selects a ten percent (10%) administrative payment general contractor other than Lessor's General Contractor, but Lessor's General Contractor nonetheless contracts with Lessor to Lessor. Such additional payments construct the "Early Construction Improvements," in each case the contract shall be paid by Lessee a guaranteed maximum price contract based upon the successful bids of subcontractors and/or negotiated prices as provided in Section 2.04(f). The total compensation to Lessor as follows: (i) fifty percent (50%) upon approval of the General Contractor under such change by Lessor; and (ii) fifty percent (50%) prior contract shall be equal to occupancy a contractor's fee not to exceed an amount equal to 2.5% of the Premises contract (provided that a contractor's fee shall not be payable for change orders required due to coordination errors caused by Lessee. All tenant improvements shall be deemed substantially completed when the City General Contractor or any of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior its subcontractors) and an amount not to the commencement exceed an amount equal to 2 1/2% of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner in which Lessee claims that the Premises contract for general conditions plus an amount equal to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, within thirty (30) days following commencement .75% of the lease term. Provided however, if any such discrepancy is incapable of cure within such thirty (30)-day period, and Lessor has commenced the cure of such discrepancy within such thirty (30)-day period, this provision shall be satisfiedcontract for insurance.

Construction of Tenant Improvements. Lessee understands Section 2.02 of the Lease is hereby amended by adding the following language to the end of the section: “Notwithstanding the foregoing, with respect to the Additional Space, the following shall apply: Tenant has personally inspected the Additional Space and agrees that Lessor is currently accepts the same “AS IS” without representation or warranty by Landlord of any kind. Tenant may make tenant finish improvements and equipment installations in the process Additional Space (collectively, the “Additional Space Improvements”). The Additional Space Improvements shall comply with the provisions of constructing Section 7.03 of the improvements Lease. Landlord agrees to reimburse Tenant in an amount not to exceed Twelve Thousand Three Hundred Seventy-five Dollars ($12,375.00) (the “Additional Space Allowance”) for the costs incurred by Tenant for the Additional Space Improvements. Landlord shall pay the Additional Space Allowance to Tenant within thirty (30) days after receipt of paid invoices from Tenant (all such paid invoices shall be submitted to Landlord on or before the date which is six (6) months immediately after the Improvement Completion Date [as defined below]) and Landlord’s inspection of the completed work, if applicable, to the Additional Space. All plans and specifications for the Additional Space Improvements to be made by Tenant shall comprise be subject to Landlord’s reasonable approval (which approval shall not be unreasonably withheld or delayed). Landlord, or its affiliate, shall be permitted to bid on the Premisesconstruction of the Additional Space Improvements. Tenant shall consider Landlord’s bid in good faith and in the event that another contractor’s bid is lower than the bid submitted by Landlord or one of its affiliates, Landlord or its affiliate shall have the right to revise its bid to match the other contractor’s bid by providing Tenant with written notice of its desire to match the bid, which notice shall contain a revised written bid containing the matching offer, within five (5) business days of notification by Tenant that the other contractor’s bid was lower than the bid of Landlord or its affiliate (“Notice”) and Landlord’s bid, if revised to match the other contractor’s bid within the 5-day period after receipt of Notice and given to Tenant in writing in the manner described in this sentence, shall be accepted by Tenant. In the course event that a contractor other than Landlord or one of such constructionits affiliates performs the Additional Space Improvements, Lessor hereby agrees Tenant shall pay Landlord a fee for its supervision of the project equal to construct five percent (5%) of the tenant improvements set forth in cost of the plans and specifications attached hereto as Exhibit "B"Additional Space Improvements (the “Fee”). Such plans and specifications are hereby clarified as follows: SEE EXHIBIT. Lessee has reviewed and approved all such plans and specifications. Any changes or additions made by Lessee to such plans and specifications Tenant shall be at Lessee's sole cost and expenseresponsible for all costs of the Additional Space Improvements in excess of the Additional Space Allowance. At Landlord’s option, including a ten percent (10%) administrative payment to Lessor. Such additional payments the Fee shall either be paid by Lessee to Lessor as follows: (i) fifty percent (50%) upon approval of such change by Lessor; and applied against the Additional Space Allowance, or (ii) fifty percent (50%) prior billed to occupancy Tenant after substantial completion of the Premises by Lessee. All tenant improvements shall be deemed substantially completed when the City of Carpinteria issues a Certificate of Occupancy for the Premises. Notwithstanding the issuance of such Certificate, Lessee shall be provided with a punch list of such tenant improvements prior to the commencement of the lease term, and shall inspect the Premises after their substantial completion. Lessee shall set forth any manner Additional Space Improvements (in which Lessee claims that event Tenant shall pay the Premises Fee to do not conform to the plans and specifications attached hereto as Exhibit "B", as reasonably measured by the standards of finished, comparably priced industrial space in the Santa Xxxxxxx area (hereinafter the "discrepancy"). Lessor shall cure such discrepancies to the extent Lessor deems such discrepancies to be reasonably claimed, Landlord within thirty (30) days following commencement Landlord’s delivery of an invoice to Tenant). If a contractor other than Landlord or one of its affiliates is selected to construct the Additional Space Improvements, Tenant and its personnel and the contractor, its subcontractors and their respective personnel shall have the right to enter the Additional Space in order to install the Additional Space Improvements. If and to the extent permitted by applicable laws, rules and ordinances and after the execution of this Amendment by the parties, Tenant shall have the right to enter the Additional Space in order to install fixtures (such as racking) and otherwise prepare the Additional Space for occupancy, which right shall expressly exclude making any structural modifications. During any entry prior to the Additional Space Commencement Date (a) Tenant shall comply with all terms and conditions of the lease termLease other than the obligation to pay rent on the Additional Space, and (b) Tenant shall not interfere with Landlord’s completion of the Additional Space Improvements. Provided howeverTenant acknowledges that Tenant shall be responsible for obtaining all applicable permits and inspections relating to any such entry by Tenant. Tenant shall cause its personnel and the personnel of the contractors and subcontractors to comply with the terms and conditions of Landlord’s rules of conduct (which Landlord agrees to furnish to Tenant upon request), and Tenant shall not begin operation of its business in the Additional Space unless and until Tenant delivers to Landlord an original certificate of occupancy, if applicable, for the Additional Space. Tenant acknowledges that Tenant shall be responsible for obtaining all applicable permits and inspections relating to Tenant’s occupancy of the Additional Space. If Landlord or one of its affiliates is selected to construct the Additional Space Improvements, Landlord or its affiliate shall receive reasonable and competitive compensation for its services, but shall in no event be entitled to receive any such discrepancy amounts in excess of the amount set forth in the bid accepted by Tenant unless the variance is incapable in compliance with the definitive agreement between the parties related to the Additional Space Improvements, which fee(s) shall be applied against the Additional Space Allowance. Any costs of cure said work performed by Landlord or its affiliates in excess of the Additional Space Allowance shall be borne by Tenant and reimbursed to Landlord or paid to Landlord’s designee within such thirty (30)-day period, 30) days of receipt of an itemized statement therefor. Landlord and Lessor has commenced Tenant shall in good faith cooperate to cause the cure of such discrepancy within such thirty (30)-day period, this provision Additional Space Improvements to be completed at the earliest reasonably practical date. Tenant shall be satisfiedentitled to the Additional Space Allowance only if the Additional Space Improvements are substantially complete on or before the Improvement Completion Date and Tenant submits paid invoices to Landlord seeking reimbursement of the Additional Space Allowance on or before the date which is three (3) months immediately after February 29, 2008 (the “Improvement Completion Date”). The foregoing limitation on Tenant’s right to receive the Additional Space Allowance shall not apply if the failure to substantially complete the Additional Space Improvements by the Improvement Completion Date arises from the negligence or willful misconduct of Landlord or its affiliates.”