Common use of Additional Rental Clause in Contracts

Additional Rental. In addition to Minimum Annual Rental, Tenant shall pay to Landlord when due each sum of money required to be paid pursuant to this Article 5, Article 16, Article 18, and any other portion of this Lease as additional rent, whether or not the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” for each calendar year following the Base Year or each portion thereof during the Term Tenant’s Share of the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of Operating Costs, Premises Taxes and Tenant’s Additional Rent for the following calendar year. Commencing on the first day of January of each calendar year following the Base Year and continuing on the first day of every month thereafter in such year, Tenant shall pay to Landlord one-twelfth (1/12th) of the estimated Additional Rent. If Landlord thereafter estimates that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Additional Rent shall thereafter be payable based on the revised estimate). As soon as reasonably practicable after the end of the Base Year and each calendar year thereafter, Landlord shall furnish Tenant a statement with respect to such year, showing Operating Costs, Premises Taxes and Additional Rent for the year, and the total payments made by Tenant with respect thereto (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (90) days after receipt of the same, such Expense Statement shall conclusively be deemed correct and Tenant shall have no right thereafter to dispute such Expense Statement or any item therein or the computation of Additional Rent based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant with reasonable verification of the figures shown on the Expense Statement and the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Lease

Additional Rental. In addition to Minimum Annual Monthly Rental, Tenant shall pay to Landlord when due each sum of money Landlord, as “Additional Rental,” all sums required to be paid by Tenant to Landlord pursuant to this Article 5Lease including, Article 16but not limited to, Article 18Operating Expenses (as defined below), interest and any other portion late charges. All payment obligations of Tenant under this Lease as additional are deemed rent and Landlord shall have the same rights and remedies for the nonpayment of such rent, whether or not the same is designated including Additional Rental, as additional rent. In addition it has with respect to the Minimum Annual Rent payable hereundernonpayment of Monthly Rental. Except to the extent otherwise provided in this Lease, Tenant is solely responsible for all costs for the care, maintenance, taxes, insurance, utilities, repair and operating expenses of the Premises. (a) Tenant shall pay Landlord as “Additional Rent” for each calendar year following the Base Year or each portion thereof during the Term Tenant’s Share of the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate monthly installments of Operating Costs, Premises Taxes and Tenant’s Additional Rent for the following calendar year. Commencing Expenses on the first day of January each month, in amounts specified in good faith by Landlord from time to time, which, by the end of each calendar year following (or by the Base Year and continuing on the first day Expiration Date, if earlier), will total Landlord’s reasonable estimate of every month thereafter in Operating Expenses to be incurred for such year. For partial years, the Operating Expenses will be calculated on a full-year basis and then prorated. If at any time Landlord incurs an unanticipated Operating Expense (or any other expense to be borne by Tenant under this Lease), Landlord may invoice Tenant for reimbursement of such expense any time after the expense is incurred, in which case Tenant shall pay to the amount so invoiced within 30 days after Landlord one-twelfth (1/12th) of delivers the estimated Additional Rent. If Landlord thereafter estimates that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Additional Rent shall thereafter be payable based on the revised estimate)invoice. As soon as is reasonably practicable after the end of the Base Year and each calendar year thereafterduring which Tenant paid Operating Expenses based on Landlord’s estimates as provided above, Landlord shall will furnish Tenant a reasonably detailed statement with respect to of Operating Expenses for such year, showing Operating Costs, Premises Taxes and Additional Rent for calendar year (the year, and the total payments made by Tenant with respect thereto (“Expense Statement”). Unless Any amounts owing for that year shall, within thirty (30) days, be paid by Tenant raises any objections to Landlord. Any amounts overpaid shall, at Landlord’s Expense Statement option, be credited against the next installment(s) of estimated Operating Expenses and Monthly Rent due from Tenant, or be refunded to Tenant within ninety thirty (9030) days after the date of the Statement. The parties’ obligations with respect to payment or refund of any deficiency or overpayment shall survive termination or expiration of this Lease; provided that no Operating Expense payments shall be due from Tenant which are not billed to Tenant within one (1) year after the Expiration Date of this Lease, and provided further that Tenant’s failure to dispute the amount of any Operating Expense or reconciliation statement within 180 days after Tenant’s receipt of a reconciliation statement for the sameapplicable calendar year, such Expense Statement shall conclusively be deemed correct and Tenant shall have no right thereafter Tenant’s waiver to dispute such Expense Statement or any item therein or ever make a claim based on Operating Expenses for the computation of Additional Rent based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant with reasonable verification of the figures shown on the Expense Statement and the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Leaseapplicable year.

Additional Rental. In addition Section 8 (Additional Rental) of the Lease is hereby amended to Minimum Annual Rentalreflect that during the Extension Term and commencing in calendar year 2008, Tenant shall will pay to Landlord when due each sum its proportionate share of money required to be paid pursuant to this Article 5, Article 16, Article 18, and any other portion Tenant’s Additional Rental based on the excess of this Lease as additional rent, whether or not the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” for Landlord’s projected Operating Expenses in each calendar year following over the Base Year or each portion thereof during Operating Expenses. For purposes of this Second Amendment, the Term Tenant’s Share “Base Year” shall mean calendar year 2007. In the event the average occupancy level of the sum Building or the Project for any calendar year, including the Base Year, is not ninety-five percent (95%) or more of (x) full occupancy, then the amount (if any) by which Operating Costs Expenses for such period exceed year shall be apportioned among the tenants by the Landlord to reflect those costs which would have occurred had the Building or the Project, as applicable, been ninety-five percent (95%) occupied during such year. For each calendar year after the Base Operating CostsYear, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end Landlord shall provide Tenant with a comparison of the Base Year Operating Expenses and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of the projected Operating Costs, Premises Taxes and Tenant’s Additional Rent Expenses for the following such current calendar year. Commencing Such projected increase in Operating Expenses shall be payable in advance on the first day of January of each calendar year following the Base Year and continuing on the first day of every month thereafter in such year, Tenant shall pay to Landlord a monthly basis by paying one-twelfth (1/12th) of the estimated Additional Rentsuch projected increase during each month of such respective calendar year. If Landlord thereafter estimates that has not furnished Tenant such comparison by January 1 of a calendar year, Tenant shall continue to pay on the basis of the prior year’s estimate until the month after such comparison is given. The statement provided by Landlord to Tenant as set forth in Section 8(c) of the Lease shall set forth such year’s actual Operating Costs Expenses compared to Base Year Operating Expenses and a statement comparing Tenant’s proportionate share of projected increases in Operating Expenses which Tenant paid throughout such calendar year with Tenant’s proportionate share of actual Operating Expense increases (the “Final Annual Statement of Operating Expenses”). If Tenant’s proportionate share of increases in actual Operating Expenses are greater than as shown in the statement delivered pursuant to Section 8(c) or Premises Taxes for greater than the amount of Tenant’s Additional Rental actually paid by Tenant pursuant thereto, Tenant shall pay Landlord, within thirty (30) days of such year will vary from statement’s receipt, such additional sum owed by Tenant. If the amount of Tenant’s Additional Rental actually paid by Tenant pursuant to Landlord’s prior estimate, Landlord may, by notice to estimate of Tenant, revise the estimate for such year (and Additional Rent shall thereafter be payable based ’s proportionate share of increases in Operating Expenses is greater than Tenant’s share of increases in actual Operating Expenses as shown on the revised estimate). As soon as reasonably practicable after the end Final Annual Statement of the Base Year and each calendar year thereafterOperating Expenses, Landlord shall furnish Tenant a statement with respect to such yearcredit Tenant, showing Operating Costs, Premises Taxes and Additional Rent for the year, and the total payments made by Tenant with respect thereto within thirty (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (9030) days after receipt of the samesuch statement issuance, such Expense Statement shall conclusively be deemed correct and overpaid amount, or if the Lease has expired, will issue a check to Tenant shall have no right thereafter to dispute for such Expense Statement or any item therein or the computation overpaid amount within thirty (30) days of Additional Rent based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant with reasonable verification of the figures shown on the Expense Statement and the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Leasestatement issuance.

Additional Rental. (a) In addition to Minimum Annual Rentalthe Base Rental for each calendar year (or portion thereof) during the term of this Lease, Tenant shall pay to Landlord when due each sum of money required to be paid pursuant to this Article 5, Article 16, Article 18, and any other portion of this Lease as additional rent, whether or not rent (the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” Rental”) Tenant’s Proportionate Share (as hereinafter defined) of the Operating Expenses (as hereinafter defined) for that year in excess of the Operating Expenses for the Base Year (as hereinafter defined) and Tenant’s Proportionate Share of the Real Estate Taxes (as hereinafter defined) in excess of the Base Real Estate Taxes (as hereinafter defined) for that year. On or about the beginning of each calendar year following the Base Year or each portion thereof during the Term Tenant’s Share term of the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafterthis Lease, Landlord shall notify deliver to Tenant of Landlord’s good faith estimate (the “Estimated Additional Rental”) of Operating Costs, Premises Taxes and Tenant’s the Additional Rent Rental for the following calendar that year. Commencing The Estimated Additional Rental shall be paid in equal installments in advance on the first day of each month. If Landlord does not deliver an estimate to Tenant for any year by January 1 of each calendar year following the Base Year and continuing on the first day of every month thereafter in such that year, Tenant shall continue to pay Estimated Additional Rental based on the prior year’s estimate. From time to Landlord one-twelfth time during any calendar year (1/12th) of the estimated Additional Rent. If Landlord thereafter estimates that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimatebut not more than twice during any calendar year), Landlord may, by notice to Tenantupon thirty (30) days prior written notice, revise its estimate of the estimate Additional Rental for such that year (and Additional Rent shall thereafter be payable based on either actual or reasonably anticipated increases in Operating Expenses or Real Estate Taxes, and the monthly installments of Estimated Additional Rental shall be appropriately adjusted for the remainder of that year in accordance with the revised estimate). As soon as reasonably practicable after estimate so that by the end of the Base Year and each calendar year thereafter, Landlord shall furnish Tenant a statement with respect to such year, showing Operating Costs, Premises Taxes and Additional Rent for the year, and the total payments made of Estimated Additional Rental paid by Tenant with respect thereto (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (90) days after receipt shall equal the amount of the samerevised estimate. The parties acknowledge and agree that during calendar year 2000, such Expense Statement Tenant’s Estimated Additional Rental shall conclusively be deemed correct and Tenant shall have no right thereafter to dispute such Expense Statement or any item therein or the computation of Additional Rent based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant with reasonable verification only Tenant’s Proportionate Share of the figures shown on Real Estate Taxes in excess of the Expense Statement and the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience LeaseBase Real Estate Taxes.

Additional Rental. In addition to Minimum Annual Rental, Tenant Lessee shall pay to Landlord when due Lessor as additional rental (“Additional Rental” sometimes referred to as “Cost Pass Through” (“CPT” in every day language) Lessee’s share (as hereinafter defined) of the increase each sum of money required to be paid pursuant to this Article 5, Article 16, Article 18, and any other year in Operating Expense (as hereinafter defined) over the Base Operating Expense (as hereinafter defined). “Lessee’s share shall equal that portion of this Lease as additional rentsuch increase that the square footage of the Premises bears to all space available for lease in the Building. The term “Operating Expense” shall include all Lessor’s costs of operation, whether or not replacement and maintenance of the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” Building for each calendar year following including, but not limited to, all ad valorem taxes, premiums for insurance, management costs, utility charges. Building and parking lot security expense, parking lot maintenance expenses, janitorial and maintenance expenses, but shall not include the cost of capital improvements (such definition shall in no way increase Lessor’s obligations hereunder). The term “Base Year or each portion thereof during the Term Tenant’s Share of Operating Expense” shall mean the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of Operating Costs, Premises Taxes and Tenant’s Additional Rent for the following $3.00 per square foot per calendar year. Commencing on the first day of January of each calendar year following the Base Year and continuing on the first day of every month thereafter in such year, Tenant shall pay to Landlord one-twelfth (1/12th) of the estimated Additional Rent. If Landlord thereafter estimates that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Additional Rent shall thereafter be payable based on the revised estimate). As soon as reasonably practicable practical after the end December 31 of the Base Year and each calendar year thereafteryear, Landlord the Lessor shall furnish Tenant deliver to the Lessee (i) a statement with respect to such year, showing of Operating Costs, Premises Taxes and Additional Rent Expenses for the yearfiscal year just ended, (ii) a computation of Lessee’s share of such Operating Expenses, and (iii) a statement of Additional Rentals, if any, payable by Lessee, hereinafter called the total payments made by Tenant with respect thereto “Notice of Payment of Additional Rentals”. Lessee shall pay such Additional Rentals within ten (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (9010) days after receipt of the same, such Expense Statement shall conclusively be deemed correct and Tenant shall have no right thereafter to dispute such Expense Statement or any item therein or the computation Notice of Payment of Additional Rent based thereonRentals. At Lessor’s option, Lessor may estimate the Additional Rentals and ▇▇▇▇ the Lessee monthly in advance for such Additional Rentals; and Lessee shall pay the same to Lessor in advance, at the same time and together with the monthly Base Rentals. If Tenant does object to such Expense Statementmonthly billing is elected by Lessor, then Landlord shall provide Tenant with reasonable verification and Lessee’s share of the figures shown on Operating Expenses for the Expense Statement applicable calendar year exceeds the Additional Rentals paid by Lessee for such calendar year, Lessee shall pay such excess within ten (10) days after receipt of Notice of Payment of Additional Rentals. If Lessee’s Share of the Operating Expenses for the applicable calendar year is less than the Additional Rentals paid by Lessee for such calendar year, Lessor shall immediately credit and reduce Lessee’s current Additional Rental payments accordingly. All Additional Rentals for the Parties calendar year in which the lease term terminates shall negotiate in good faith be due and payable upon receipt of Notice of Payment of Additional Rentals even if such Notice is received after the lease termination date. With respect to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Leasethe Additional Rentals, within sixty (60) days from the end of each calendar year, Lessee upon reasonable notice to Lessor, may have access to Lessor’s records to verify, at Lessee’s expense, the Operating Expenses for the applicable calendar year. The base operating expense for the 902 square foot vault (G-102 Extension) shall be $ 3.47 less ad valorem taxes per square foot per annum. Ad valorem taxes shall be paid directly by the Lessee.

Additional Rental. In addition to Minimum Annual Rental, Tenant Lessee shall pay to Landlord when due Lessor as additional rental (“Additional Rental” sometimes referred to as “Cost Pass Through” (“CPT” in every day language) Lessee’s share (as hereinafter defined) of the increase each sum of money required to be paid pursuant to this Article 5, Article 16, Article 18, and any other year in Operating Expense (as hereinafter defined) over the Base Operating Expense (as hereinafter defined). “Lessee’s share shall equal that portion of this Lease as additional rentsuch increase that the square footage of the Premises bears to all space available for lease in the Building. The term “Operating Expense” shall include all Lessor’s costs of operation, whether or not replacement and maintenance of the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” Building for each calendar year following including, but not limited to, all ad valorem taxes, premiums for insurance, management costs, utility charges, Building and parking lot security expense, parking lot maintenance expenses, janitorial and maintenance expenses, but shall not include the cost of capital improvements (such definition shall in no way increase Lessor’s obligations hereunder). The term “Base Year or each portion thereof during the Term Tenant’s Share of Operating Expense” shall mean the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of Operating Costs, Premises Taxes and Tenant’s Additional Rent for the following $3.00 per square foot per calendar year. Commencing on the first day of January of each calendar year following the Base Year and continuing on the first day of every month thereafter in such year, Tenant shall pay to Landlord one-twelfth (1/12th) of the estimated Additional Rent. If Landlord thereafter estimates that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Additional Rent shall thereafter be payable based on the revised estimate). As soon as reasonably practicable practical after the end December 31 of the Base Year and each calendar year thereafteryear, Landlord the Lessor shall furnish Tenant deliver to the Lessee (i) a statement with respect to such year, showing of Operating Costs, Premises Taxes and Additional Rent Expenses for the yearfiscal year just ended, (ii) a computation of Lessee’s share of such Operating Expenses, and (iii) a statement of Additional Rentals, if any, payable by Lessee, hereinafter called the total payments made by Tenant with respect thereto “Notice of Payment of Additional Rentals”. Lessee shall pay such Additional Rentals within ten (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (9010) days after receipt of the same, such Expense Statement shall conclusively be deemed correct and Tenant shall have no right thereafter to dispute such Expense Statement or any item therein or the computation Notice of Payment of Additional Rent based thereonRentals. At Lessor’s option, Lessor may estimate the Additional Rentals and ▇▇▇▇ the Lessee monthly in advance for such Additional Rentals; and Lessee shall pay the same to Lessor in advance, at the same time and together with the monthly Base Rentals. If Tenant does object to such Expense Statementmonthly billing is elected by Lessor, then Landlord shall provide Tenant with reasonable verification and Lessee’s share of the figures shown on Operating Expenses for the Expense Statement applicable calendar year exceeds the Additional Rentals paid by Lessee for such calendar year, Lessee shall pay such excess within ten (10) days after receipt of Notice of Payment of Additional Rentals. If Lessee’s Share of the Operating Expenses for the applicable calendar year is less than the Additional Rentals paid by Lessee for such calendar year, Lessor shall immediately credit and reduce Lessee’s current Additional Rental payments accordingly. All Additional Rentals for the Parties calendar year in which the lease term terminates shall negotiate in good faith be due and payable upon receipt of Notice of Payment of Additional Rentals even if such Notice is received after the lease termination date. With respect to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Leasethe Additional Rentals, within sixty (60) days from the end of each calendar year, Lessee upon reasonable notice to Lessor, may have access to Lessor’s records to verify, at Lessee’s expense, the Operating Expenses for the applicable calendar year. The base operating expense for the 902 square foot vault (G-102 Extension) shall be $3.47 less ad valorem taxes per square foot per annum. Ad valorem taxes shall be paid directly by the Lessee.

Additional Rental. In (a) Tenant shall also pay to the Landlord, as Additional Rent (“Additional Rent’) for each month of each Calendar Year, in addition to Minimum Annual Rental, Tenant shall pay to Landlord when due each sum of money Base Rent and all other amounts herein required to be paid pursuant by Tenant, (i) an amount equal to this Article 5, Article 16, Article 18one-twelfth of Tenant’s proportionate share (“Tenant’s Proportionate Share”) derived from a fraction using as the numerator the Rentable Area of the Demised Premises, and any other portion as the denominator, the Rentable Area of the Property (89,053 square feet) times the amount, if any, by which the aggregate of all Basic Operating Costs (as defined in Section 6) paid or incurred by Landlord on account of the management, operation and maintenance of the Property, and (ii) the annual taxes (“Taxes”) for the Property. (b) The Tenant’s obligation under this Section 5 to pay Additional Rent shall be, from the Commencement Date of this Lease as additional rent, whether or not the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” for each calendar year following the Base Year or each portion thereof during the Term Tenant’s Share of the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year first calendar year, be the sum of based on the estimated amount of $6.42 per square foot of space in the Demised Premises, per year, payable monthly as provided for in Section 4 of this Lease. The foregoing amount is an estimate only and will be subject to adjustment as provided for herein at the end of each calendar year. Landlord shall provide Tenant with a written estimated basic Operating Expenses statement (“Budgeted Basic Operating Expenses”) on or before December 1 of each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of indicating the Operating Costs, Premises Taxes and Tenant’s Additional Rent Expenses for the following Property for the ensuing calendar year which will be billed to Tenant for its prorata share, in advance monthly commencing with January 1st of each calendar year. Commencing By April 1st of each year Landlord shall provide Tenant with a written statement of the actual Operating Expenses (“Actual Basic Operating Expenses”) incurred by Landlord for the Property for the preceding calendar year. Such difference between the Actual Basic Operating Expenses for the Property incurred by Landlord and the Budgeted Basic Operating Expenses shall be payable by Tenant in a lump sum on the first day of January of each calendar year the month following the Base Year such written notice. Landlord will endeavor to provide Tenant with a written Budgeted Basic Operating Expenses statement and continuing Actual Basic Operating Expense statement on the first day dates stated herein, but any failure by Landlord to do so shall not be a waiver of every month thereafter nor affect Landlord’s right to collect from Tenant any Additional Rent which is provided for herein. If in such yearany year the Actual Basic Operating Expenses attributable to Tenant is less than the Additional Rent Tenant has paid, Tenant shall pay to Landlord one-twelfth (1/12th) receive a credit for such excess amount paid in the form of a credit over the remainder of the estimated Additional Rentyear. If Landlord thereafter estimates It is further agreed that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Additional Rent foregoing adjustment provisions shall thereafter be payable based on survive the revised estimate). As soon as reasonably practicable after the end termination of the Base Year and each calendar year thereafter, Landlord shall furnish Tenant a statement with respect to such year, showing Operating Costs, Premises Taxes and Additional Rent for the year, and the total payments made by Tenant with respect thereto (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (90) days after receipt of the same, such Expense Statement shall conclusively be deemed correct and Tenant shall have no right thereafter to dispute such Expense Statement or any item therein or the computation of Additional Rent based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant with reasonable verification of the figures shown on the Expense Statement and the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience this Lease.

Additional Rental. In addition a. The clauses under Article 5. BASE RENTAL ADJUSTMENT of the Prime Lease, covering additional rental shall apply to Minimum Annual this Sublease. b. The base year for Base Rental Adjustment (as defined in Article 5 of the Prime Lease and herein called "Additional Rental") computations shall be 1998 (the "Base Year"). c. Sublessee shall pay as Additional Rental any costs incurred in connection with Sublessee's operation or after hours use of the heating, Tenant ventilation, and air conditioning system ("HVAC") within the Subleased Premises as permitted by Section 15.a hereof. d. Beginning in 1999 and for each year thereafter during the Sublease term, Sublessee shall pay to Landlord when due each sum Sublessor as Additional Rental its proportionate share (i.e. the percentage determined from time to time by dividing the Net Rentable Area of money required to be paid pursuant to this Article 5the Subleased Premises by the total Net Rentable Area of the Prime Leased Premises - initially 32.69 %) of the amount, Article 16if any, Article 18, and any other portion of this Lease as additional rent, whether or not by which the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” Basic Cost for each calendar such year following exceeds the Base Year or each portion thereof during the Term Tenant’s Share Basic Cost. e. Sublessee's proportionate share of the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of Operating Costs, Premises Taxes and Tenant’s Additional Rent for the following calendar year. Commencing on the first day of January of each calendar year following the Base Year and continuing on the first day of every month thereafter in such year, Tenant shall pay to Landlord one-twelfth (1/12th) of the estimated Additional Rent. If Landlord thereafter estimates that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Additional Rent shall thereafter be payable monthly commencing April 1, 1999, based on the revised estimate). As soon as reasonably practicable after the end estimates of Basic Cost being paid by Sublessor under Sections 5.04 and 5.05 of the Base Year and each calendar year thereafter, Landlord shall furnish Tenant a statement Prime Lease. In the event of any adjustment to Sublessor's payments with respect to such yearBasic Cost under Sections 5.06 or 5.07 of the Prime Lease, showing Operating CostsSublessee shall pay or receive, Premises Taxes and Additional Rent for as the yearcase may be, and the total a corresponding adjustment of its payments made by Tenant with respect thereto to Basic Cost under this Paragraph. f. Sublessor shall provide to Sublessee, within fifteen (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (9015) days after Sublessor's receipt thereof, copies of all estimates and statements received by Sublessor from Landlord with respect to the sameamount or payment of Basic Cost for any year during the term of this Sublease. If Sublessor elects to exercise its right to audit the Landlord's books and records relating to Basic Cost, such Expense Statement shall conclusively be deemed correct and Tenant Sublessee shall have no the right thereafter to dispute examine the results of such Expense Statement or audit. Sublessor further agrees that it will exercise its audit rights with respect to any item therein or years during the computation term of Additional Rent based thereon. If Tenant does object this Sublease upon Sublessee's written request, provided that Sublessee agrees to reimburse Sublessor for its actual out-of-pocket costs and expenses incurred in connection with such Expense Statement, then Landlord shall provide Tenant with reasonable verification of the figures shown on the Expense Statement and the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Leaseaudit.

Additional Rental. In addition a. The clauses under Article 5. BASE RENTAL ADJUSTMENT of the Bindview Base Lease covering additional rental shall apply to Minimum Annual this Sublease during the term of this Sublease. b. The base year for Base Rental Adjustment (as defined in Article 5 of the Bindview Base Lease and herein called “Additional Rental”) computations shall be 2005 (the “Base Year”). c. Subtenant shall pay as Additional Rental any costs incurred in connection with Subtenant’s operation or after hours use of the heating, Tenant ventilation, and air conditioning system (“HVAC”) within the Subleased Premises as permitted by Section 7.04 of the Bindview Base Lease. d. Beginning in 2006 and for each year thereafter during the Sublease term, Subtenant shall pay to Landlord when due each sum Sublandlord as Additional Rental its proportionate share (i.e. the percentage determined from time to time by dividing the Net Rentable Area of money required to be paid pursuant to this Article 5the Subleased Premises by the total Net Rentable Area of the Bindview Premises during the term of the Bindview Base Lease) of the amount, Article 16if any, Article 18, and any other portion of this Lease as additional rent, whether or not by which the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” Basic Cost for each calendar such year following exceeds the Base Year or each portion thereof during the Term TenantBasic Cost. e. Subtenant’s Share proportionate share of the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of Operating Costs, Premises Taxes and Tenant’s Additional Rent for the following calendar year. Commencing on the first day of January of each calendar year following the Base Year and continuing on the first day of every month thereafter in such year, Tenant shall pay to Landlord one-twelfth (1/12th) of the estimated Additional Rent. If Landlord thereafter estimates that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Additional Rent shall thereafter be payable monthly, based on the revised estimate). As soon as reasonably practicable after the end estimates of Basic Cost being paid by Sublandlord under Sections 5.01 and 5.02 of the Bindview Base Year Lease and each calendar year thereafter, Landlord shall furnish Tenant a statement continuing until the Expiration Date of this Sublease. In the event of any adjustment to Sublandlord’s payments with respect to such yearBasic Cost under Sections 5.04, showing Operating Costs5.05 and 5.06 of the Bindview Base Lease, Premises Taxes and Additional Rent for Subtenant shall pay or receive, as the yearcase may be, and the total a corresponding adjustment of its payments made by Tenant with respect thereto to Basic Cost under this Paragraph. f. Sublandlord shall provide to Subtenant, within fifteen (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (9015) days after Sublandlord’s receipt thereof, copies of all estimates and statements received by Sublandlord from Landlord with respect to the sameamount or payment of Basic Cost for any year during the term of this Sublease. If Sublandlord elects to exercise its right to audit the Landlord’s books and records relating to Basic Cost, such Expense Statement shall conclusively be deemed correct and Tenant Subtenant shall have no the right thereafter to dispute examine the results of such Expense Statement or any item therein or the computation of Additional Rent based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant with reasonable verification of the figures shown on the Expense Statement and the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Leaseaudit.

Additional Rental. In addition to Minimum Annual Rental, Tenant shall pay to Landlord when due each sum of money required to be paid pursuant to this Article 5, Article 16, Article 18, For calendar year 1998 and any other portion of this Lease as additional rent, whether or not the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” for each calendar year following thereafter Tenant shall pay as additional rental together with all sums other than Annual Rental payable by Tenant under this Lease (the Base "Additional Rental") for each Operating Expense Year (as hereinafter defined) Tenant's Share (as hereinafter defined) of the increase, if any, in the direct expenses paid or each portion thereof during incurred by Landlord for the Term operation, repair and maintenance of the Building, Building Parking Garage, other Common Building Facilities, and the Additional Parking Area ("Operating Expenses" as more fully defined in Exhibit D). As of the Effective Date of this Lease, the total rentable area of the leasable space within the Building is 515,738 square feet; therefore, as of the Effective Date of this Lease, the Tenant’s 's Share of Operating Expenses is three point nine-five percent (3.95%). Notwithstanding the foregoing, for purposes of calculating Additional Rental hereunder (i) the Operating Expenses for 1998 shall not exceed four percent (4%) of the Operating Expense Base, and (ii) the Operating Expenses for each Operating Expense Year following 1998 shall not exceed four percent (4%) of the Operating Expenses for the immediately preceding Operating Expense Year (as limited pursuant to this paragraph 4.02(a)); provided however that such limitation shall apply only to all Operating Expenses other than the real estate taxes and assessments. In calculating the maximum amount of Operating Expenses for Tenants Share, the amount of actual real estate taxes and assessments shall first be deducted from Operating Expenses then the four percent (4%) limitation shall be applied to the remainder and then real estate taxes and assessments shall be added back and the sum of (x) the above amounts shall be the Operating Expenses used in determining Tenant's Share of Operating Expenses; provided however that the amount of real estate taxes and assessments in 1998 shall not be in excess of ten percent (if any10%) by which Operating Costs for such period exceed Base Operating Costs, and (y) more than the amount of 1997 taxes and for each year after 1998 shall not be in excess of ten percent (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of Operating Costs, Premises Taxes and Tenant’s Additional Rent for the following calendar year. Commencing on the first day of January of each calendar year following the Base Year and continuing on the first day of every month thereafter in such year, Tenant shall pay to Landlord one-twelfth (1/12th10%) of the estimated amount for the prior year. Such Additional Rent. If Landlord thereafter estimates that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Additional Rent Rental shall thereafter be payable based on the revised estimate). As soon as reasonably practicable after the end of the Base Year and each calendar year thereafter, Landlord shall furnish Tenant a statement with respect to such year, showing Operating Costs, Premises Taxes and Additional Rent for the year, and the total payments made by Tenant with respect thereto (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (90) days after receipt of the same, such Expense Statement shall conclusively be deemed correct and Tenant shall have no right thereafter to dispute such Expense Statement or any item therein or the computation of Additional Rent based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant with reasonable verification of the figures shown on the Expense Statement and the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Leaseas hereinafter provided.

Additional Rental. In addition The first paragraph of Paragraph Five of the Office Lease Agreement as amended shall be amended effective June 1, 2007 to Minimum Annual Rentalread as follows: Landlord shall absorb and be responsible for paying all Operating Expenses during the first calendar year of the Renewal Term (the “Expense Stop”); and, Tenant Landlord shall pay to Landlord when due each sum of money required to absorb and be paid pursuant to this Article 5, Article 16, Article 18, and responsible for all Operating Expenses for any other portion calendar year of this Lease as additional rent, whether or not the same is designated as additional rent. In addition Renewal Term to the Minimum Annual Rent payable hereunderextent such Operating Expenses in any other calendar year are less than or equal to the Expense Stop. Thereafter, Tenant shall pay Landlord as “Additional RentRental” for each any calendar year following the Base Year or each portion thereof during the Term shall mean Tenant’s Percentage Share of the sum Operating Expenses for such calendar year in excess of the Expense Stop, “Tenant’s Percentage Share” shall mean a fraction, the numerator of which is the total number of square feet of Net Rentable Area within the Premises (27,268 square feet from and after February 1, 2007) and the denominator of which is the greater of (xi) ninety-five percent (95%) of the total square footage of all Net Rentable Area in the Building (42,073 as of February 1, 2007); or (ii) the amount total square footage of all Net Rentable Area in the Building actually leased to rent paying tenants. Paragraph c. of Paragraph Five of the Office Lease Agreement as amended shall be amended effective June 1, 2007 to read as follows: The Annual Operating Expense Statement shall be rendered by Landlord to Tenant within thirty (30) day after calculation of such Annual Operating Expenses by Landlord. The payment of any Additional Rental by Tenant shall not preclude it from questioning the truth, correctness, or completeness of any Annual Operating Expense Statement. Tenant and its authorized representatives shall have the right to audit Landlord’s records with respect to the Annual Operating Expenses. In the event Tenant’s audit discloses discrepancies, the appropriate adjustment shall be made, and if any) by which Operating Costs such discrepancies result in an overcharge to Tenant that is in excess of 2% of the annual billing to Tenant for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafteritem(s), Landlord shall notify also reimburse Tenant its actual out-of-pocket expenses of Landlord’s estimate such audit, but in no event shall Landlord be responsible for audit expenses of Operating Costs, Premises Taxes and Tenant that exceed the amount(s) found to be an overcharge to Tenant’s Additional Rent for . In the following calendar year. Commencing on the first day of January of each calendar year following the Base Year and continuing on the first day of every month thereafter in such year, event Tenant shall pay to Landlord one-twelfth (1/12th) of the estimated Additional Rent. If Landlord thereafter estimates that dispute any Annual Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice to Tenant, revise the estimate for such year (and Additional Rent shall thereafter be payable based on the revised estimate). As soon as reasonably practicable after the end of the Base Year and each calendar year thereafter, Landlord shall furnish Tenant a statement with respect to such year, showing Operating Costs, Premises Taxes and Additional Rent for the year, and the total payments made by Tenant with respect thereto (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (90) days after receipt of the same, such Expense Statement shall conclusively be deemed correct and Tenant shall have no right thereafter to dispute such Expense Statement or any item therein or the computation of Additional Rent based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant with reasonable verification of the figures shown on the Expense Statement and the Parties parties cannot resolve their differences within sixty (60) days thereafter, then the matter shall negotiate in good faith be referred to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Leasearbitration. The balance of subparagraphs 5 (a) and (b) shall remain unchanged.

Additional Rental. In addition to Minimum Annual (a) For purposes of this Lease, "Tenant's Forecast Additional Rental, Tenant " shall pay mean Landlord's reasonable estimate of Tenant's Additional Rental for the coming calendar year or portion thereof. If at any time it appears to Landlord when due each sum of money required to be paid pursuant to this Article 5, Article 16, Article 18, and any other portion of this Lease as additional rent, whether or not the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “that Tenant's Additional Rent” for each calendar year following the Base Year or each portion thereof during the Term Tenant’s Share of the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of Operating Costs, Premises Taxes and Tenant’s Additional Rent Rental for the following current calendar year. Commencing on the first day of January of each calendar year following the Base Year and continuing on the first day of every month thereafter in such year, Tenant shall pay to Landlord one-twelfth (1/12th) of the estimated Additional Rent. If Landlord thereafter estimates that Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate's estimate by more than five percent (5%), Landlord mayshall have the right to revise, by notice to Tenant, revise the its estimate for such year, and subsequent payments by Tenant for such year (shall be based upon such revised estimate of Tenant's Additional Rental. Failure to make a revision contemplated by the immediately preceding sentence shall not prejudice Landlord's right to collect the full amount of Tenant's Additional Rental. Prior to the Rental Commencement Date and thereafter prior to the beginning of each calendar year during the Lease Term, including any extensions thereof, Landlord shall present to Tenant a statement of Tenant's Forecast Additional Rent Rental for such calendar year; provided, however, that if such statement is not given prior to the beginning of any calendar year as aforesaid, Tenant shall thereafter be payable based continue to pay during the next ensuing calendar year on the revised estimate)basis of the amount of Tenant's Forecast Additional Rental payable during the calendar year just ended until the month after such statement is delivered to Tenant. (b) For purposes of this Lease, "Tenant's Additional Rental" shall mean for each calendar year the Operating Expense Amount (defined below) multiplied by the number of square feet of Rentable Floor Area of Demised Premises. As soon used herein, "Operating Expense Amount" shall mean an amount equal to (i) plus (ii), where: (i) equals the amount of Operating Expenses (as reasonably practicable defined below) for such calendar year; and (ii) equals a management fee contribution equal to three percent (3%) of the sum of the Base Rental plus the amount due under item (i) above. Notwithstanding anything to the contrary set forth in item (ii) above, for the period beginning on the Effective Date and ending on August 31,2001, Tenant's management fee contribution shall continue to be calculated as provided in the Original Lease (i.e., $.34 per square foot of Rentable Floor Area of Demised Premises for calendar year 2000, and $.35 per square foot of Rentable Floor Area of Demised Premises for the applicable portion of calendar year 2001) and the three percent (3%) management fee contribution described in item (ii) above shall become effective as of September 1,2001. Tenant's management fee contribution for calendar year 2001 shall be appropriately pro-rated as of September 1, 2001. (c) Within one hundred fifty (150) days after the end of the Base Year calendar year in which the Rental Commencement Date occurs and of each calendar year thereafterthereafter during the Lease Term, Landlord shall furnish Tenant a statement with respect to such year, showing Operating Costs, Premises Taxes and Additional Rent for the year, and the total payments made by Tenant with respect thereto (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (90) days after receipt of the same, such Expense Statement shall conclusively be deemed correct and Tenant shall have no right thereafter to dispute such Expense Statement or any item therein or the computation of Additional Rent based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant a statement showing the Operating Expenses (including components thereof in reasonable detail) for said calendar year, and a statement prepared by Landlord comparing Tenant's Forecast Additional Rental with reasonable verification ATLOI/IO756990v6 Tenant's Additional Rental. In the event Tenant's Forecast Additional Rental exceeds Tenant's Additional Rental for said calendar year, Landlord shall credit such amount against Rent next due hereunder or, if the Lease Term has expired or is about to expire, refund such excess to Tenant if there is not an event of default on the part of Tenant under this Lease (in the instance of an event of default such excess shall be held as additional security for Tenant's performance, may be applied by Landlord to cure any such event of default, and shall not be refunded until any such event of default is cured). In the event that the Tenant's Additional Rental exceeds Tenant's Forecast Additional Rental for said calendar year, Tenant shall pay Landlord, within thirty (30) days of receipt of the figures shown on statement, an amount equal to such difference. The provisions of this Lease concerning the Expense Statement and payment of Tenant's Additional Rental shall survive the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience expiration or earlier termination of this Lease.

Additional Rental. In addition (a.) Rental escalation after occupancy shall be calculated as follows: (i) The increase calculated on a per square foot basis where the actual operating expenses in any lease year exceeds the base operating expense of the base year which, for the purpose herein shall be 2006. A Schedule of which is attached as Exhibit “D” and incorporated herein for all purposes. NO SCHEDULE AVAILABLE. (ii) The rental escalation shall be the Lessee’s proportionate share of the increase of the actual operating expense in any lease year over the base operating expense factor. (iii) Lessor has the option to Minimum Annual Rentalcollect additional income based on an operating budget any year after the base year. This collection shall be made on a monthly basis. Lessor shall, Tenant within six months following the close of any calendar year for which additional rental is due, provide actual costs to Lessee along with a statement of Lessee’s share of such actual costs. (b.) Lessee agrees to pay as Additional Rental its pro-rata share of all Operating Expenses of the Building over the base year, plus a management fee which is 15 of said expenses, as defined herein below. Lessor shall have the right to estimate the amount of such Operating Expenses, which will be incurred with respect to each Lease Year hereunder, and to estimate Lessee’s pro-rata share thereof. Lessee shall pay to Landlord when due each sum of money required to be paid pursuant to this Article 5Lessor monthly, Article 16, Article 18, and any other portion of this Lease as additional rent, whether or not the same is designated as additional rent. In addition to the Minimum Annual Rent payable hereunder, Tenant shall pay Landlord as “Additional Rent” for each calendar year following the Base Year or each portion thereof during the Term Tenant’s Share of the sum of (x) the amount (if any) by which Operating Costs for such period exceed Base Operating Costs, and (y) the amount (if any) by which Premises Taxes for such period exceed Base Taxes. Prior to the end of the Base Year and each calendar year thereafter, Landlord shall notify Tenant of Landlord’s estimate of Operating Costs, Premises Taxes and Tenant’s Additional Rent for the following calendar year. Commencing on the first day of each month, in advance for each month in the term of this lease, beginning on January 1st of each the first calendar year following after the Base Year and continuing on the first day of every month thereafter in such year, Tenant shall pay to Landlord one-twelfth (1/12th) Commencement Date of the lease, an amount equal to the amount estimated Additional Rentby Lessor to be Lessee’s pro-rata share of the actual operating Expenses for such Lease Year, divided by the number of months n such Lease Year. If Landlord thereafter estimates that Lessee’s pro-rata share of the actual Operating Costs or Premises Taxes for such year will vary from Landlord’s prior estimate, Landlord may, by notice Expenses with respect to Tenant, revise the estimate for such year any Lease Year (and Additional Rent shall thereafter be payable based on the revised estimate). As soon as reasonably practicable after determined at the end of the Base Lease Year) is less than the amount paid by Lessee as its pro-rata share of the estimated Operating expense for such Lease Year and each calendar year thereaftera “effect ease Year”) then, Landlord provided that Lessee is not then in default in the performance obligations under this lease, Lessor shall furnish Tenant issue credit to lessee the amount by which the amounts paid by Lessee as Lessee’s )pro rata share of the estimated Operating Expenses exceeds Lessee’s pro-rata share of the actual Operating Expenses for the Dec lease Year promptly following the determination of such actual Operating Expenses; provided, however, in no event shall Lessee ever be entitled to a statement refund in respect to any Lease Year in excess )f the Additional Rental payments made under this Paragraph 5(c) in respect to such Lease Year. If the Lessee’s pro-rata share of the actual Operating Expenses with respect to any Lease Year exceeds :he amount paid by Lessee to Lessor as Lessee’s pro-rata share of estimated Operating Expenses for such Lease Year, then Lessee shall ay to Lessor the amount of such excess within ten (10) days allowing receipt of notice from Lessor setting forth Lessee’s pro -at share of actual Operating Expenses with respect to such Lease Pear and the payment due by Lessee. (c.) Base Year 2006 shall be calculated individually for four expense categories, as defined in paragraph 5(d), as; (1) property axes; (2) property insurance; (3) utilities and (4) all other operating expense categories. In the event that any one expense decreases below such expense amount in any prior year, showing Operating Costs, Premises Taxes and Additional Rent for no offset shall be made to other expenses that may have increased in such ear. After the year, and the total payments made by Tenant with respect thereto (“Expense Statement”). Unless Tenant raises any objections to Landlord’s Expense Statement within ninety (90) days after receipt initial year of the same, such Expense Statement shall conclusively be deemed correct and Tenant shall Lease Lessee agrees to have no right thereafter to dispute such Expense Statement or any item therein or the computation of Additional Rent he annual rent increased based thereon. If Tenant does object to such Expense Statement, then Landlord shall provide Tenant with reasonable verification of the figures shown on the Expense Statement and the Parties shall negotiate in good faith to resolve any 9 Landlord /s/ RS____ CA Lease Revision 8.0 – Torrey Hills Corporate Center Tenant /s/ KA____ Skye Bioscience Leasean operating budget pro-forma.