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engineering procedures or environmental investigations on the Property necessary to determine that Lessee's use of <br />the Premises will be compatible with Lessee's engineering, specifications, system designs, operations and <br />Governmental Approvals. <br />4. Term. The term of this Lease Agreement ("Term") shall be ten (10) years commencing with the <br />issuance of a local governmental building permit allowing Lessee to construct Lessee's Facilities on the Premises or <br />twelve (l2) months from the date of full execution of this Lease Agreement, whichever occurs first <br />("Commencement Date"). Lessee shall promptly deliver written notice to Lessor of the Commencement Date. <br />Lessee shall have the right to extend the Term of this Lease Agreement for one (I) additional term (the "Renewal <br />Term") of five (5) yeazs. This Lease Agreement shall automatically be extended for the Renewal Term unless Lessee <br />notifies Lessor in writing of Lessee's intention not to extend this Lease Agreement at least thirty (30) days prior to <br />the expiration of the Term. Further, this Lease Agreement shall be automatically extended for two (2) additional five <br />(5) yeaz terms (the "Mutual Renewal Terms") unless Lessee or Lessor notifies the other party of its intention not to <br />extend the Agreement at least six (6) months prior to the expiration of the Mutual Renewal Term. The terms and <br />conditions for the Renewal Term shall be the same terms and conditions as in this Lease Agreement, except that the <br />Rent shall be increased as set forth hereinbelow. <br />5. Rent. Within fifteen (15) days of the Commencement Date, Lessee shall pay Lessor, as rent, the <br />sum of One Thousand Seven Hundred Fifty Dollars ($1,750.00) ("Rent") per month. Rent shall be payable on <br />the fust day of each month, in advance, to Lessor or Lessor's alternate payee specified in Section 22, Notices and <br />Deliveries. [f the Commencement Date of this Lease Agreement is other than the first day of a calendar month, <br />Lessee may pay on the first day of the Term the prorated Rent for the remainder of the calendar month in which the <br />Term commences, and thereafter Lessee shall pay a full month's Rent on the first day of each calendar month, except <br />that payment shall be prorated for the fmal fractional month of this Lease Agreement, or if this Lease Agreement is <br />terminated before the expiration of any month for which Rent should have been paid. Rent shall be adjusted as of the <br />fifth (5'") anniversary of the Commencement Date of the Term and of any five (5) year Renewal Term by an increase <br />of fifteen percent (15%) of the Rent paid during the previous Term or five (5) year Renewal Term. <br />6. Due Diligence Contineencv and Pre-Commencement Date Access to Premises. Lessee shall <br />have the right (but not the obligation) at any time following the full execution of this Lease Agreement and prior to <br />the Commencement Date, to enter the Premises for the purpose of making necessary inspections, taking <br />measurements and conducting engineering surveys (and soil tests where applicable) and other reasonably necessary <br />tests to determine the suitability of the Premises for Lessee's Facilities ("Due Diligence"), and for the purpose of <br />prepazing the Premises for the installation or construction of Lessee's Facilities. During any Due Diligence activities <br />or pre-construction work, Lessee shall have insurance which covers such activities as set forth in Sectionl6, <br />Insurance. Lessee will notify Lessor of any proposed tests, measurements or pre-construction work and will <br />coordinate the scheduling of such activities with Lessor. If in the course of its Due Diligence Lessee determines that <br />the Premises aze unsuitable for Lessee's contemplated use, then Lessee shall have the right to terminate this Lease <br />Agreement prior to the Commencement Date by delivery of written notice thereof to Lessor as set forth in Section <br />13, Termination. <br />7. Ongoing Access to Premises. Lessee shall have 24 hours a day, 7 days a week access to the <br />Premises ("Access") via Santos Ranch Road (which Road is owned by Lessor) at all times during the Initial Term of <br />this Lease and any Renewal Term at a charge of $125/yeaz during the Initial Term of this Lease and increasing by <br />3% of each additional Renewal Term. In the event Lessor, its employees or agents impede or deny Access to Lessee, <br />its employees or agents for reasons other than repair or maintenance of Santos Ranch Road, Lessee shall, without <br />waiving any other rights it may have at law or in equity, deduct from Rent amounts then due under the Lease an <br />amount equal to fifty dollazs per day for each day that Access is impeded or denied. <br />8. Lessee's Work, Maintenance and Repairs. All of Lessee's construction and installation work at <br />the Premises shall be performed at Lessee's sole cost and expense and in a good and workmanlike manner. Lessee <br />shall submit copies of the site plan and specifications to the Lessor for prior approval, which approval will not be <br />Site No: SF06520A -Santos Ranch <br />Site Address: 3998 Foothill Rd., Pleasanton, CA <br />FINAL LEASE 9.14.08 <br />Page 2 of 12 <br />