Document:

Prepared by R.R. Donnelley Financial -- Severance Benefits Agreement - Mohan Maheswaran

  Exhibit 10.9 
  EXECUTIVE 
 CHANGE IN CONTROL 
 SEVERANCE BENEFITS AGREEMENT 
              THIS EXECUTIVE CHANGE IN CONTROL SEVERANCE BENEFITS AGREEMENT  (the  “AGREEMENT” ) is entered into on May 14, 2002, between Mohan Maheswaran
(“Executive”) and  INTERSIL CORPORATION , a Delaware corporation (the  “COMPANY” ).
             WHEREAS, under the
Agreement and Plan of Merger (the “Merger Agreement”) dated March 10, 2002, by and among the Company, Echo Acquisition, Inc. and Elantec Semiconductor, Inc. (“Elantec”), the Company has agreed to acquire Elantec pursuant to the
Merger (as defined in the Merger Agreement) on the terms and conditions set forth in the Merger Agreement; and
             WHEREAS, this Agreement is
intended to provide Executive with the compensation and benefits described herein upon the occurrence of specific events after the Merger. This Agreement is entered into simultaneously with an employment agreement by and between the Executive and
the Company dated the date hereof (the “Employment Agreement”).
             NOW THEREFORE, the Company and Executive hereby agree as
follows:
             Certain capitalized terms used in this Agreement are defined in Article VI.
  ARTICLE I

 EMPLOYMENT BY THE COMPANY 
              1.1    Executive is currently employed as an executive of Elantec and,
after and subject to the closing of the Merger, will be employed as an Executive of the Company.
              1.2    This
Agreement shall be deemed effective at the Effective Time (as defined in the Merger Agreement) of the Merger and shall remain in full force and effect so long as Executive is employed by the Company or its subsidiaries; provided, however, that the
rights and obligations of the parties hereto contained in Articles II through VII shall survive Two and One Half (2-1/2) years following a Covered Termination (as hereinafter defined). Notwithstanding the foregoing, if the Closing (as defined in the
Merger Agreement) of the Merger does not occur and the Merger Agreement is terminated, this Agreement shall have no force or effect and shall be void ab initio.
              1.3    The Company and Executive wish to set forth the compensation and benefits which Executive shall be entitled to receive in connection with
the Merger or if Executive’s employment with the Company terminates following the Merger or a Change in Control under the circumstances described in Article II of this Agreement.
  

               1.4    The duties and obligations of the Company to Executive under this Agreement shall be in
consideration for Executive’s past services to Elantec, Executive’s continued employment with the Company and Executive’s execution of the general waiver and release described in Section 3.2.
              1.5    Executive acknowledges and agrees that this Agreement supersedes Executive’s prior Executive Change in Control Severance Benefits
Agreement dated February 13, 2001, by and between Executive and Elantec (the “Prior Agreement”). The Prior Agreement shall terminate and be of no further force or effect concurrently with (and shall be deemed to be terminated immediately
prior to) the Effective Time of the Merger, and Executive waives any rights or benefits that would be payable under the Prior Agreement and forever releases and discharges the Company, Elantec and each of their affiliates from any obligations or
liabilities relating to the Prior Agreement. Executive’s rights and benefits with respect to the subject matter of the Prior Agreement shall be exclusively governed by the terms and conditions of this Agreement.
  ARTICLE II 
 SEVERANCE BENEFITS 
              2.1     Entitlement To Severance Benefits. If
Executive’s employment terminates due to an Involuntary Termination or a Voluntary Termination for Good Reason (as hereinafter defined) within twelve (12) months following (i) the Closing Date (as defined in the Merger Agreement) of the Merger
or (ii) the effective date of a Change in Control, the termination of employment will be a Covered Termination and the Company shall pay Executive the compensation and benefits described in this Article II. If Executive’s employment terminates,
but not due to an Involuntary Termination or a Voluntary Termination for Good Reason within twelve (12) months following (A) the Closing Date of the Merger or (B) the effective date of a Change in Control, then the termination of employment will 
not  be a Covered Termination and Executive will  not  be entitled to receive any payments or benefits under this Article II.
             Payment of any benefits described in this Article II shall be subject to the restrictions and limitations set forth in Article III of this Agreement.
              2.2     Lump Sum Severance Payment. The Company shall pay to the Executive his base pay through the Date of Covered
Termination at the rate in effect at the time Notice of Termination is given, subject to any applicable withholding of federal, state or local taxes, plus (i) that portion of Executive’s targeted cash bonus prorated through the Date of Covered
Termination, and (ii) all other amounts to which Executive is entitled under any compensation plan or practice of the Company at the time such payments are due. In addition, within thirty (30) days following a Covered Termination, Executive shall
receive a lump sum payment equal to one hundred percent (100%) of the sum of Annual Base Pay and Annual Bonus, subject to any applicable withholding of federal, state or local taxes.
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               2.3     Stock Options. In accordance with Section 4.3, certain outstanding stock options
held by the Executive may become fully vested and exercisable upon a Covered Termination and the period of time for exercise of stock options following a Covered Termination may be extended.
              2.4     Welfare Benefits. Following a Covered Termination, Executive and his covered dependents will be eligible to continue their Welfare
Benefits coverage under any Welfare Benefits plan or program maintained by the Company on the same terms and conditions (including cost to Executive) as in effect immediately prior to the Covered Termination, for a period of one (1) year following
the Covered Termination.
             With respect to any Welfare Benefits provided through an insurance policy, the Company’s obligation to
provide such Welfare Benefits following a Covered Termination shall be limited by the terms of such a policy; provided that (i) the Company shall make reasonable efforts to amend such policy to provide the continued coverage described in this
Section 2.4, and (ii) if a policy providing health benefits is not amended to provide the continued benefits described in this Section 2.4, the Company shall pay for the cost of comparable replacement coverage (or Medigap insurance if Executive
qualifies for Medicare) until the end of the one (1) year period following the Covered Termination.
             The Company shall reimburse Executive
for any income tax liability due as a result of the provision of Welfare Benefits under this Article II (and as a result of any payments due under this paragraph) in order to put Executive in the same after-tax position as if no taxable Welfare
Benefits had been provided.
             This Section 2.4 is not intended to affect, nor does it affect, the rights of Executive, or Executive’s
covered dependents, under any applicable law with respect to health insurance continuation coverage.
              2.5    
Mitigation. Except as otherwise specifically provided herein, Executive shall not be required to mitigate damages or the amount of any payment provided under this Agreement by seeking other employment or otherwise, nor shall the amount of any
payment provided for under this Agreement be reduced by any compensation earned by Executive as a result of employment by another employer or by retirement benefits after the date of the Covered Termination, or otherwise.
  ARTICLE III 
 LIMITATIONS AND CONDITIONS ON BENEFITS 
              3.1    
Withholding of Taxes. The Company shall withhold appropriate federal, state or local income and employment taxes from any payments hereunder.
              3.2     Employee Agreement and Release Prior to Receipt of Benefits. Upon the occurrence of a Covered Termination, and prior to the receipt
of any benefits under this
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  Agreement on account of the occurrence of a Covered Termination, Executive shall, as of the date of a Covered Termination, execute an employee agreement and release in the form attached
hereto as Exhibit A. Such employee agreement and release shall specifically relate to all of Executive’s rights and claims in existence at the time of such execution and shall confirm Executive’s obligations under the Company’s
proprietary information agreement (which Executive executed in favor of Elantec prior to the Merger and which shall inure to the benefit of the Company and be fully enforceable by, and apply in all respects with respect to, the Company). It is
understood such employee release and agreement shall comply with applicable law. In the event Executive does not execute such release and agreement within the period required by applicable law, or if Executive revokes such employee agreement and
release within the period permitted by applicable law, no benefits shall be payable under this Agreement and this Agreement shall be null and void.
  ARTICLE IV 
 OTHER RIGHTS AND BENEFITS

              4.1     Nonexclusivity. Nothing in this Agreement shall prevent or limit Executive’s continuing or
future participation in any benefit, bonus, incentive or other plans, programs, policies or practices provided by the Company and for which Executive may otherwise qualify, and except as expressly provided herein, nor shall anything herein limit or
otherwise affect such rights as Executive may have under any stock option or other agreements with the Company. Except as otherwise expressly provided herein, amounts which are vested benefits or which Executive is otherwise entitled to receive
under any plan, policy, practice or program of the Company at or subsequent to the date of a Covered Termination shall be payable in accordance with such plan, policy, practice or program.
              4.2     Parachute Payments. In the event that any amount or benefit received or to be received by Executive pursuant to this Agreement
(other than payment pursuant to this Section 4.2) would constitute an “excess parachute payment” subject to excise tax under Section 4999 of the Code, the Company shall pay to Executive the amount of any such excise tax; provided, however,
that no payment shall be made under this Section 4.2 to the extent that it would reduce Executive’s after-tax income.
              4.3
    Stock Options. The Company shall take all actions necessary to amend all stock option agreements evidencing outstanding stock options and any restricted stock grant agreements granted to Executive such that:

                         (a)    in the event of a Covered Termination within 12
months following the Closing Date of the Merger: (i) to provide for full accelerated vesting and exercisability of that portion of any of Executive’s outstanding options to purchase Intersil Class A Common Stock (or securities of the surviving
entity that are issuable upon exercise of stock options following a Change in Control) that would have vested over the subsequent two (2) years following the Date of Covered Termination and (ii) to permit Executive to exercise all such vested
options for
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  twelve (12) months following a Covered Termination (or the remaining term of the applicable option grant if shorter than 12 months); and
                          (b)    in the event of a Covered Termination within 12 months following the
effective date of a Change in Control: (i) to provide for full accelerated vesting and exercisability of all of the Executive’s outstanding options to purchase Intersil Class A Common Stock (or securities of the surviving entity that are
issuable upon exercise of stock options following a Change in Control) and (ii) to permit Executive to exercise all such vested options for twenty-four (24) months following a Covered Termination (or the remaining term of the applicable option grant
if shorter than 24 months).
 Any prior amendments that have been made by Elantec with respect to Executive’s stock option agreements providing for accelerated vesting or other rights or benefits in
accordance with the Prior Agreement are hereby superseded and made null and void.
              4.4     Indemnity Agreement.
The Indemnity Agreement signed by the Executive upon employment with Elantec (which will be assumed by and binding on the Company) will remain in full force and effect for 5 years following the Date of Covered Termination.
  ARTICLE V 
 NON-ALIENATION OF BENEFITS 
             No benefit hereunder shall be subject to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to so subject a benefit hereunder shall be void.
  ARTICLE VI 
 DEFINITIONS 
             For purposes of the Agreement, the following terms shall have the meanings set forth below:
              6.1     “Agreement”  means this Executive Change in Control Severance Benefits Agreement.
              6.2     “Annual Base Pay”  means Executive’s annual base pay at the rate in effect during the last regularly scheduled
payroll period immediately preceding (i) the Merger or Change in Control, as applicable, or (ii) the Covered Termination, whichever is greater.
              6.3     “Annual Bonus”  means the Executive’s projected or estimated annual cash incentive bonus at target for the fiscal
year of the Company in which termination of Executive’s employment occurs.
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               6.4     “Change in Control”  means the consummation of any of the following
transactions after the Effective Time of the Merger:
                          (a)
   the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of
the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the Company approve a plan of liquidation or dissolution of the Company or an agreement for the sale, lease, exchange or other
transfer or disposition by the Company of all or substantially all (more than fifty percent (50%)) of the Company’s assets;
                          (b)    any person (as such term is used in Sections 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), is or becomes the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) directly or indirectly of 25% or more of the Company’s outstanding Common Stock;
or
                          (c)    a change in the composition of the
Board of Directors of the Company within a three (3) year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either:
                                       (A)
   are directors of the Company at the Effective Time;
                                       (B)
   are elected, or nominated for election, to the Board of Directors of the Company with the affirmative votes of at least a majority of the directors of the Company who are Incumbent Directors described in (A) above at the time
of such election or nomination; or
                                       (C)
   are elected, or nominated for election, to the Board of Directors of the Company with the affirmative votes of at least a majority of the directors of the Company who are Incumbent Directors described in (A) or (B) above at the
time of such election or nomination.
             Notwithstanding the foregoing, “Incumbent Directors” shall not include an individual whose
election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company.
              6.5     “Company”  means Intersil Corporation, a Delaware corporation, and any successor thereto.
              6.6     “Covered Termination”  means an Involuntary Termination or a Voluntary Termination for Good Reason within twelve (12)
months following (i) the Merger or (ii) a Change in Control after the Effective Time of the Merger. No other event shall be a Covered Termination for purposes of this Agreement.
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               6.7     “Date of Covered Termination”  means the first date following the last
date of Executive’s employment with the Company or its subsidiaries as a result of a Covered Termination.
              6.8
    “Date of Notice of Termination”  means the date the Executive is given notice, either verbal or written, that his employment with the Company or its subsidiaries has been or will be terminated.
              6.9     “Involuntary Termination”  means Executive’s dismissal or discharge by the Company or its
subsidiaries (or, if applicable, by the successor entity) for reasons other than fraud, misappropriation or embezzlement on the part of Executive which resulted in material loss, damage or injury to the Company. Notwithstanding the foregoing,
Executive shall not be deemed to have been terminated for one of these reasons unless and until there shall have been delivered to Executive a copy of a resolution, duly adopted by the affirmative vote of not less than three-quarters of the entire
membership of the Company’s Board of Directors at a meeting of the Board called and held for the purpose (after reasonable notice to Executive and an opportunity for the Executive, together with Executive’s counsel, to be heard before the
Board of Directors), finding that in the good faith opinion of the Board of Directors, Executive was guilty of conduct set forth in the immediately preceding sentence and specifying the particulars thereof in detail.
             The termination of an Executive’s employment would not be deemed to be an “Involuntary Termination” if such termination occurs as a result of the death or
disability of Executive.
              6.10     “Voluntary Termination for Good Reason”  means that the Executive
voluntarily terminates his employment after any of the following are undertaken without Executive’s express written consent:
                          (a)    the assignment to Executive of any duties or responsibilities which
result in any diminution or adverse change of Executive’s position, status or circumstances of employment as in effect immediately following the Merger (in the case of a Covered Termination relating to the Merger) or immediately prior to a
Change in Control of the Company (in the case of a Covered Termination relating to a Change in Control); any removal of Executive from or any failure to reelect Executive to any of such positions, except in connection with the termination of his
employment for death, disability, retirement, fraud, misappropriation, embezzlement or any other voluntary termination of employment by Executive other than Voluntary Termination for Good Reason;
                          (b)    a reduction by the Company in Executive’s Annual Base Pay or
targeted annual cash incentive bonus in effect at the time;
                          (c)
   any failure by the Company to continue in effect any benefit plan or arrangement, including incentive plans or plans to receive securities of the Company, in which Executive is participating at the time of the Merger (in the
case of a Covered Termination
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  relating to the Merger) or a Change in Control of the Company (hereinafter referred to as “Benefit Plans”), or the taking of any action by the Company which would adversely affect
Executive’s participation in or reduce Executive’s benefits under any Benefit Plans or deprive Executive of any fringe benefit enjoyed by Executive at the time of the Merger (in the case of a Covered Termination relating to the Merger) or
a Change in Control of the Company, provided, however, that Executive will not incur a Voluntary Termination for Good Reason pursuant to this subsection (c) if the Company offers a range of benefit plans and programs which, taken as a whole, are
comparable to the Benefit Plans as determined in good faith by Executive;
                          (d)    a relocation of Executive, or the Company’s principal executive
offices if Executive’s principal office is at such offices, to a location more than fifteen (15) miles from the location at which Executive performed Executive’s duties immediately prior to the Merger (in the case of a Covered Termination
relating to the Merger) or a Change in Control of the Company, except for required travel by Executive on the Company’s business to an extent substantially consistent with Executive’s business travel obligations at the time of the Merger
or a Change in Control of the Company;
                          (e)
   any breach by the Company of any provision of this Agreement; or
                          (f)    any failure by the Company to obtain the assumption of this
Agreement by any successor or assign of the Company.
 Notwithstanding the foregoing, Executive’s voluntary termination as a result of changes implemented by the Company within ninety (90) days of the Merger
that relate to families of products being added to or subtracted from Executive’s business unit or Executive’s responsibilities shall not constitute a Voluntary Termination for Good Reason pursuant to this Section 6.10.
              6.11     “Welfare Benefits”  means benefits providing for coverage or payment in the event of Executive’s
death, disability, illness or injury that were provided to Executive immediately before the Merger (in the case of a Covered Termination relating to the Merger) or a Change in Control, whether taxable or non-taxable and whether funded through
insurance or otherwise, including without limitation all life and health insurance coverage.
  ARTICLE VII 
 GENERAL PROVISIONS 
              7.1     Employment Status. This Agreement does not constitute a contract of employment or impose on Executive any obligation to remain as an
employee, or impose on the Company any obligation (i) to retain Executive as an employee, (ii) to change the status of Executive as an at-will employee, or (iii) to change the Company’s policies regarding termination of employment.

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               7.2     Notices. Any notices provided hereunder must be in writing and such notices or
any other written communication shall be deemed effective upon the earlier of personal delivery (including personal delivery by telex or facsimile) or the third day after mailing by first class mail, to the Company at its primary office location and
to Executive at his address as listed in the Company’s payroll records. Any payments made by the Company to Executive under the terms of this Agreement shall be delivered to Executive either in person or at his address as listed in the
Company’s payroll records.
              7.3     Severability. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had
never been contained herein.
              7.4     Waiver. If either party should waive any breach of any provisions of the
Agreement, he or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.
              7.5     Complete Agreement. This Agreement, including Exhibit A and other written agreements referred to in this Agreement, constitutes the
entire agreement between Executive and the Company and it is the complete, final, and exclusive embodiment of their agreement with regard to the subject matter hereof, and expressly supersedes all other agreements, promises or understandings,
whether oral or written, including without limitation the Executive’s prior employment agreement with Elantec dated January 3, 2001 (the “Prior Employment Agreement”) and the Prior Agreement. For the purpose of clarity, the parties
hereto acknowledge and agree that in the event of any termination of Executive’s employment with the Company which constitutes a Covered Termination hereunder, Executive shall be entitled to the rights and benefits provided for in this
Agreement in lieu of any rights or benefits provided for in Executive’s Prior Employment Agreement, Prior Agreement, Employment Agreement or in any employment agreement or letter subsequently entered into by the Executive with the Company. This
Agreement is entered into without reliance on any promise or representation other than those expressly contained herein.
              7.6
    Amendment or Termination of Agreement. This Agreement may be changed or terminated only upon the mutual written consent of the Company and Executive. The written consent of the Company to a change or termination of this
Agreement must be signed by an executive officer of the Company after such change or termination has been approved by the Compensation Committee of the Company’s Board of Directors.
              7.7     Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one
party, but all of which taken together will constitute one and the same Agreement.
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               7.8     Headings. The headings of the Articles and sections hereof are inserted for
convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.
              7.9    
Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not
assign any of his duties hereunder and Executive may not assign any of his rights hereunder without the written consent of the Company, which consent shall not be withheld unreasonably.
              7.10     Attorney Fees. If Executive brings any action to enforce his rights hereunder, Executive shall be entitled to recover his
reasonable attorneys’ fees and costs incurred in connection with such action if Executive is the prevailing party in such action.
             
7.11     Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the law of the State of California.
              7.12     Non-Publication. The parties mutually agree not to disclose publicly the terms of this Agreement except to the extent that
disclosure is mandated by applicable law.
              7.13     Construction of Agreement. In the event of a conflict
between the text of this Agreement and any summary, description or other information regarding the Agreement, the text of the Agreement shall control.
 [Signatures Appear on the Following Page]

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   IN WITNESS WHEREOF,  the parties have executed this Agreement on the day and year written above.

	 INTERSIL CORPORATION 
 a Delaware Corporation 

	 	 EXECUTIVE 

	   /s/ Richard M. Beyer	 	By:  	/s/ Mohan Maheswaran
	
	 	 	

	Name: Richard M. Beyer
Title: President and CEO	 	 	Mohan Maheswaran 

  Exhibit A: Employee Agreement and Release 
  

    Exhibit A  
  Intersil Corporation 
  Employee Agreement and Release 

            I understand and agree completely to the terms set forth in the foregoing agreement.
             I hereby confirm my obligations under the Agreement Regarding Proprietary Information and Inventions (which I executed in favor of Elantec Semiconductor, Inc. prior to
the Merger and which shall inure to the benefit of the Company and be fully enforceable by, and apply in all respects with respect to, the Company after the Merger).
             I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which
the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected this settlement with the debtor.” I hereby expressly waive and relinquish all rights and
benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims I may have against the Company.
             Except as otherwise set forth in this Agreement, I hereby release, acquit and forever discharge the Company, its parents and subsidiaries, and their officers, directors,
agents, servants, employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages, indemnities and obligations of every kind and nature, in
law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed (other than any claim for indemnification I may have as a result of any third party action against me based on my employment with the Company),
arising out of or in any way related to agreements, events, acts or conduct at any time prior to and including the Effective Date of this Agreement, including but not limited to: all such claims and demands directly or indirectly arising out of or
in any way connected with my employment with the Company or the termination of that employment, including but not limited to, claims of intentional and negligent infliction of emotional distress, any and all tort claims for personal injury, claims
or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any other form of compensation; claims pursuant to
any federal, state or local law or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the federal American with
Disabilities Act of 1990; the California Fair Employment and Housing Act, as amended; tort law; contract law; wrongful discharge; discrimination; fraud; defamation; emotional distress; and breach of the implied covenant of good faith and fair
dealing; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from the obligations under the Indemnification Agreement entered into with Elantec and to provide you with continued coverage under
the
  

  Company’s directors and officers liability insurance policy to the same extent that it has provided such coverage to previously departed officers and directors of the
Company.
             I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under ADEA. I also acknowledge that
the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value which I was already entitled. I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a)
my waiver and release do not apply to any rights or claims that may arise after the Effective Date of this Agreement; (b) I have the right to consult with an attorney prior to executing this Agreement; (c) I have twenty-one (21) days to consider
this Agreement (although I may choose to voluntarily execute this Agreement earlier); (d) I have seven (7) days following the execution of this Agreement by the parties to revoke the Agreement; and (e) this Agreement shall not be effective until the
date upon which the revocation period has expired, which shall be the eighth day after this Agreement is executed by me, provided that the Company has also executed this Agreement by that date (“Effective Date”).
 

	 	 	By:  	 
		 	 	 
 
	 	 	 	Mohan Maheswaran

 

	 	 	Date:Prepared by R.R. Donnelley Financial -- Lease - Robert Ruggles

  Exhibit 10.11
  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION   STANDARD INDUSTRIAL/COMMERCIAL
SINGLE-TENANT LEASE-NET 
  (Do not use this form for Multi-Tenant Property) 
  1.     Basic Provisions (“Basic Provisions”)

             1.1   Parties: This Lease (“Lease”), dated for reference purposes only, June: 23, 1993 is made by and between
Robert Ruggles (“Lessor”) and Elantec, Inc., a California Corporation (“Lessee”), (collectively the “Parties,” or individually a “Party”).
             1.2   Premises: That certain real property, including all improvements therein or to be provided by Lessor under the terms of this Lease, and commonly
known by the street address of 1996 Tarob Court, Milpitas located in the County of Santa Clara, State of California and generally described as (describe briefly the nature of the property) a freestanding R&D building of approximately 39,308
square feet (“Premises”). (See Paragraph 2 for further provisions).
             1.3   Term: 3 years and _______ months
(“Original Term”) commencing January 1, 1994 (“Commencement Date”) and ending December 31, 1996 (“Expiration Date”). (See Paragraph 3 for further provisions.)
             1.5   Base Rent: $25,157.00 per month (“Base Rent”), payable on the first day of each month commencing January 1, 1994 (See Paragraph 4 for
further provisions.)
 o If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted.
             1.7   Security Deposit: $26,000.00 (“Security Deposit”). (See Paragraph 5 for further provisions.)
             1.8   Permitted Use: Research and development, fabrication of analog integrated circuits, general office and legal related uses (See Paragraph 6 for
further provisions.)
             1.9   Insuring Party: Lessor is the “Insuring Party” unless otherwise stated herein. (See
Paragraph 8 for further provisions.)
             1.10 Real Estate Brokers: The following real estate brokers (collectively, the
“Brokers”) and brokerage relationships exist in this transaction and are consented to by the Parties (check applicable boxes); ____________________________________________________________________________________ represents
             _______________________________________________________________________________ represents
 o Lessor exclusively (“Lessor’s Broker”); o both Lessor and Lessee, and Bishop Hawk, Inc. represents
 Lessee exclusively (“Lessee’s
Broker”); o both Lessee and Lessor. (See Paragraph 15 for further provisions.)
             1.12   Addenda. Attached hereto is an Addendum or Addenda consisting of Paragraphs 49 through 53 and Exhibit A’ all of which constitute a part of this
Lease.
  2.     Premises. 
             2.1   Letting. Lessor hereby
leases to Lessee, and Lessee hereby leases form Lessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of square footage set
forth in this Lease, or that may have been used in calculating rental, is an approximation which Lessor and Lessee agree is reasonable and the rental based thereon is not subject to revision whether or not the actual square footage is more or
less.
             2.4   Acceptance of Premises. Lessee hereby acknowledges: (a) that it has been advised by the Brokers to satisfy
itself with respect to the condition of the Premises (including but not limited to the electrical and fire sprinkler systems, security, environmental aspects, compliance with Applicable Law, as defined in Paragraph 6.3) and the present and future
suitability of the Premises for Lessee’s intended use, (b) that Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to Lessee’s occupancy of the
Premises and/or the term of this Lease, and (c) that neither Lessor, nor any of Lessor’s agents, has made any oral or written representations or warranties with respect to the said matters other than as set forth in this Lease.
             2.5   Lessee Prior Owner/Occupant. The warranties made by Lessor in this Paragraph 2 shall be of no force or effect if immediately prior
to the date set forth in Paragraph 1.1 Lessee was the owner or occupant of the Premises. In such event, Lessee shall, at Lessee’s sole cost and expense, correct any non-compliance of the Premises with said warranties.
  3.     Term. 
             3.1   Term. The Commencement Date, Expiration Date and
Original Term of this Lease are as specified in Paragraph 1.3.
 PAGE 1

 
  4.     Rent. 
             4.1   Base Rent.
Lessee shall cause payment of Base Rent and other rent or charges, as the same may be adjusted from time to time, to be received by Lessor in lawful money of the United States, without offset or deduction, on or before the day on which it is due
under the terms of this Lease. Base Rent and all other rent and charges for any period during the term hereof which is for less than one (1) full calendar month shall be prorated based upon the actual number of days of the calendar month involved.
Payment of Base Rent and other charges shall be made to Lessor at its address stated herein or to such other persons or at such other addresses as Lessor may from time to time designate in writing to Lessee.
 
5.     Security Deposit.  Lessee shall deposit with Lessor upon execution hereof the Security Deposit set forth in Paragraph 1.7 as security for Lessee’s faithful performance of Lessee’s obligations under this
Lease. If Lessee fails to pay Base Rent or other rent or charges due hereunder, or otherwise defaults under this Lease (as defined in Paragraph 13.1). Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any
amount due Lessor or to reimburse or compensate Lessor for any liability, cost, expense, loss or damage (including attorney’s fees) which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of said
Security Deposit, Lessee shall within ten (10) days after written request therefor deposit moneys with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. Any time the Base Rent increases during the term of
this Lease, Lessee shall, upon written request from Lessor, deposit additional moneys with Lessor sufficient to maintain the same ratio between the Security Deposit and the Base Rent as those amounts are specified in the Basic Provisions. Lessor
shall not be required to keep all or any part of the Security Deposit separate from its general accounts. Lessor shall, at the expiration or earlier termination of the term hereof and after Lessee has vacated the Premises, return to Lessee (or, at
Lessor’s option, to the last assignee, if any, of Lessee’s interest herein), that portion of the Security Deposit not used or applied by Lessor. Unless otherwise expressly agreed in writing by Lessor, no part of the Security Deposit shall
be considered to be held in trust, to bear interest or other increment for it’s use, or to be prepayment for any money’s to be paid by Lessee under this Lease.
  6.     Use.

             6.1   Use. Lessee shall use and occupy the Premises only for the purposes set forth in Paragraph 1.8, or any other use
which is comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that creates waste or a nuisance, or that disturbs owners and/or occupants of, or causes damage to, neighboring premises or
properties. Lessor hereby agrees to not unreasonably withhold or delay its consent to any written request by Lessee, Lessees assignees or subtenants, and by prospective assignees and subtenants of the Lessee, its assignees and subtenants, for a
modification of said permitted purpose for which the premises may be used or occupied, so long as the same will not impair the structural integrity of the improvements on the Premises, the mechanical or electrical systems therein, is not
significantly more burdensome to the Premises and the improvements thereon, and is otherwise permissible pursuant to this Paragraph 6. If Lessor elects to withhold such consent, Lessor shall within five (5) business days give a written notification
of same, which notice shall include an explanation of Lessor’s reasonable objections to the change in use.
             6.2   Hazardous Substances.
                         (a) Reportable uses Require Consent. The term “Hazardous Substance” as used in this
Lease shall mean any product, substance, chemical, material or waste whose presence, nature, quantity and/or intensity of existence, use, manufacture, disposal, transportation, spill, release or effect, either by itself or in combination with other
material expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for liability of
Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substance shall include but not be limited to, hydrocarbons, petroleum, gasoline, crude oil or any products, by–products or fractions
thereof. Lessee shall not engage in any activity in, on or about the Premises which constitutes a Reportable Use (as hereinafter defined) of Hazardous Substances without the express prior written consent of Lessor and compliance in a timely manner
at Lessee’s sole cost and expense) with all Applicable Law (as defined in Paragraph 6.3). “Reportable Use” shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage,
use, transportation, or disposal of a Hazardous Substance that requires a permit form, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority. Reportable Use shall also
include Lessee’s being responsible for the presence in, on or about the Premises of a Hazardous Substance with respect to which any Applicable Law requiring that a notice be given to persons entering or occupying the Premises or neighboring
properties. Notwithstanding the foregoing, Lessee may, without Lessor’s prior consent, but in compliance with all Applicable Law, use any ordinary and customary materials reasonably required to be used by Lessee in the normal course of
Lessee’s business permitted on the Premises so long as such use is not a Reportable Use and does not expose the Premises or neighboring properties to any meaningful risk of contamination or damage or expose Lessor to any liability therefore. In
addition, Lessor may (but without any obligation to do so) condition its consent to the use or presence of any Hazardous Substance, activity or storage tank by Lessee upon Lessee’s giving Lessor such additional assurances as Lessor, in its
reasonable discretion, deems necessary to protect itself, the public, the Premises and the environment against damage, contamination or injury and/or liability therefrom or therefor, including, but not limited to, the installation (and removal on or
before Lease expiration or earlier termination) of reasonably necessary protective modification to the Premises (such as concrete encasements) and/or the deposit of an additional Security Deposit under Paragraph 5 hereof.
                         (b) Duty to inform Lessor. If Lessee knows, or has reasonable cause to believe,
that a Hazardous Substance, or a condition involving or resulting from same, has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to
Lessor. Lessee shall also immediately give Lessor a copy of any statement, report, notice, registration, application, permit, business plan, license, claim, action or proceeding given to, or received from, any governmental authority or private
party, or persons entering or occupying the Premises, concerning the presence, spill, release, discharge of, or exposure to any Hazardous Substance or contamination in, on, or about the Premises, including but not limited to all such documents as
may be involved in any Reportable Uses involving the Premises.
                         (c)
Indemnification. Lessee shall indemnify, protect, defend and Lessor, its agents, employees, lenders and ground Lessor, if any, and the Premises, harmless from and against any and all loss of rents and/or damages, liabilities, judgments, costs,
claims, liens, expenses, penalties, permits and attorney’s and consultant’s fees arising out of or involving any Hazardous Substance or storage tank brought onto the Premises by or for Lessee or under Lessee’s control. Lessee’s
obligations under this Paragraph 6 shall include, but not be limited to, the effects of any contamination or injury to person, property or the environmental created or suffered by Lessee, and the cost of investigation (including consultant’s
and attorney’s fees and testing), removal, remediation, restoration and/or abatement thereof, or of any contamination therein involved, and shall survive the expiration or earlier termination of this Lease. No termination, cancellation or
release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this lease with respect to Hazardous Substances or storage tanks, unless specifically so agreed by Lessor in writing at the time of such
agreement.
             6.3   Lessee’s Compliance with Law. Except as otherwise provided in this Lease, Lessee, shall, at
Lessee’s sole cost and expense, fully, diligently and in a timely manner, comply with all “Applicable Law,” which term is used in this Lease to include all laws, rules, regulations, ordinances, directives, covenants, easements and
restrictions of record, permits, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessor’s engineers and/or consultant’s, relating in any manner to the Premises (including but not
limited to matters pertaining to (i) industrial hygiene, (ii) environmental conditions on, in, under or about the Premises, including soil and groundwater conditions, and (iii) the use, generation, manufacture, production, installation, maintenance,
removal, transportation, storage, spill or release of any Haza rdous Substance or storage tank), now in effect or which may hereafter come into effect and whether or not reflecting a change in policy from any previously existing policy. Lease shall
within five (5) days after receipt of Lessor’s written request, provide Lessor with copies of all documents and information, including, but not limited to, permits, registrations, manifests, applications, reports and certificates evidencing
Lessee’s compliance with any Applicable Law specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened of actual claim, notice, citation, warning, complaint or
report pertaining to or involving failure by Lessee or the Premises to comply with any Applicable Law.
             6.4   Inspection;
Compliance. Lessor and Lessor’s Lender(s) (as defined in Paragraph 8.3(a)) shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of
the Premises and for verifying the compliance by Lessee with this Lease and all Applicable Laws (as defined in Paragraph 6.3), and to employ experts and/or consultants in connection therewith and/or to advise Lessor with respect to Lessee’s
activities, including but not limited to the installation, operation, use, monitoring, maintenance, or removal of any Hazardous Substance or storage tank on or from the Premises. The costs and expenses of any such inspections shall be paid by the
party requesting same, unless a Default or Breach of this Lease, violation of Applicable Law, or a contamination, caused or materially contributed to b y Lessee is found to exist or be imminent, or unless the inspection is requested or ordered by a
governmental authority as the result of any such existing or imminent violation or contamination. In any such case, Lessee shall upon request reimburse Lessor or Lessor’s Lender, as the case may be, for the costs and expenses of such
inspections.
  7.     Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations. 
             7.1   Lessee’s Obligations.
                         (a) Subject to the provisions of Paragraphs 2.2 (Lessor’s warranty as to condition). 2.3
(Lessor’s warranty as to compliance with covenants, etc.).
 PAGE 2

 
 7.2 (Lessor’s obligations to repair). 9 (damage and destruction), and 14 (condemnation), Lessee shall, at Lessee’s sole cost and expense and at all times, keep the Premises and
every part thereof in good order, condition and repair, structural and non-structural (whether or not such portion of the Premises including repairs or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or
not the need for such repairs occurs as a result of Lessee’s use, any prior use, the elements or the age of such portion of the Premises), including, without limiting the generality of the foregoing, all equipment or facilities serving the
Premises, such as plumbing, heating, air conditioning, ventilating , electrical, lighting facilities, boilers fired or unfired pressure vessels, fire sprinkler and/or standpipe and hose or other automatic fire extinguishing system, including fire
alarm and/or smoke detection systems and equipment, fire hydrants, fi xtures, walls (interior and exterior), foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights landscaping, driveways, parking lots, fences, retaining walls,
signs, sidewalks and parkways located in, on, about, or adjacent to the Premises. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under or about the Premises (including through the plumbing or sanitary
sewer system) and shall promptly, at Lessee’s expense, take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security
and/or monitoring of the Premises, the elements surrounding same, or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance and/or storage tank brought onto the Premises
by or for Lessee or under its control. Lessee, in keeping the Premises in good order, condition and repair shall exercise and perform good maintenance practices. Lessee’s obligations shall include restorations, replacements or renewals when
necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair. If Lessee occupies the Premises for seven (7) years or more. Lessor may require Lessee to repaint the exterior of the
buildings on the Premises as reasonably required, but not more frequently than once every seven (7) years.
                         (b) Lessee shall, at Lessee’s sole cost and expense, procure and maintain contracts, with
copies to Lessor, in customary form and substance for and with contractors specializing and experienced in, the inspection, maintenance and service of the following equipment and improvements, if any, located on the Premises: (i) heating, air
conditioning and ventilation equipment, (ii) boiler, fired and unfired pressure vessels, (iii) fire sprinkler and/or standpipe and hose or other automatic fire extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and
Irrigation systems, (v) roof covering and drain maintenance and (vi) asphalt and parking lot maintenance.
             7.2   Lessor’s Obligations. Except for the warranties and agreements of Lessor contained in Paragraphs 2.2 (relating to condition of the Premises),
2.3 (relating to compliance with covenants, restrictions and building code), 9 (relating to destruction of the Premises) and 14 (relating to condemnation of the Premises), It is intended by the Parties hereto that Lessor have no obligation, in any
manner whatsoever, to repair and maintain the Premises, the improvements located thereon, or the equipment therein, whether structural or non structural, all of which obligations are intended to be that of the Lessee under Paragraph 7.1 hereof. It
is the intention of the Parties that the term of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises, Lessee and Lessor expressly waive the benefit of any statute now or hereafter in effect to the
extent it is inconsistent with the terms of this Lease with respect to, or which affords Lessee the right to make repairs at the expense of Lessor or to terminate this Lease by reason of any needed repairs.
             7.3   Utility installations; Trade Fixtures; Alterations.
                         (a) Definitions; Consent Required. The term “Utility Installations” is used in this
Lease to refer to all carpeting, window coverings, air lines, power panels, electrical distribution, security, fire protection systems, communication systems, lighting fixtures, heating, ventilating, and air conditioning equipment, plumbing, and
fencing in, on or about the Premises. The term “Trade Fixtures” shall mean Lessee’s machinery and equipment that can be removed without doing material damage to the Premises. The term “Alterations” shall mean any
modification of the improvements on the Premises from that which are provided by Lessor under the terms of this Lease, other than Utility Installations or Trade Fixtures, whether by addition or deletion. “Lessee Owned Alterations and/or Utility
Installations” are defined as Alterations and/or Utility Installations made by lessee that are not yet owned by Lessor as defined in Paragraph 7.4(a). Lessee shall not make any Alterations or Utility Installations in, on, under or about the
Premises without Lessor’s prior written consent. Lessee may, however, make non-structural Utility Installations to the interior of the Premises (excluding the roof), as long as they are not visible from the outside, do not involve puncturing,
relocating or removing the roof or any existing walls, and the cumulative cost thereof during the term of this Lease as extended does not exceed $25,000.
                         (b) Consent. Any Alterations or Utility Installations that Lessee shall desire to make and which
require the consent of the Lessor shall be presented to Lessor in written form with proposed detailed plans. All consents given by Lessor, whether by virtue of Paragraph 7.3(a) or by subsequent specific consent, shall be deemed conditioned upon: (i)
Lessee’s acquiring all applicable permits required by governmental authorities, (ii) the furnishing of copies of such permits together with a copy of the plans and specifications for the Alteration or Utility Installation to Lessor prior to
commencement of the work thereon, and (iii) the compliance by Lessee with all conditions of said permits in a prompt and expeditious manner. Any Alterations or Utility Installation by Lessee during the term of this Lease shall be done in a good and
workmanlik e manner, with good and sufficient materials, and in compliance with all Applicable Law. Lessee shall promptly upon completion thereof furnish Lessor with as-built plans and specifications therefor. Lessor may (but without obligation to
do so) condition its consent to any requested Alteration or Utility Installation that costs $10,000 or more upon Lessee’s providing Lessor with a lien and completion bond in an amount equal to one and one-half times the estimated cost of such
Alteration or Utility Installation and/or upon Lessee’s posting an additional Security Deposit with Lessor under Paragraph 36 hereof.
                         (c) Indemnification. Lessee shall pay, when due, all claims for labor or materials furnished or
alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanics’ or materialmen’s lien against the Premises or any interest therein. Lessee shall give Lessor not less than
ten (10) days’ notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility in or on the Premises as provided by law. If Lessee shall, in good faith, contest
the validity of any such lien, claim or demand, then Lessee shall at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the
enforcement th ereof against the Lessor or the Premises. If Lessor shall require, Lessee shall furnish to Lessor a surety bond satisfactory to Lessor in an amount equal to one and one-half times the amount of such contested lien claim or demand
indemnifying Lessor against liability for the same, as required by law for the holding of the Premises free from the effect of such lien or claim. In addition, Lessor may require Lessee to pay Lessor’s attorney’s fees and costs in
participating in such action if Lessor shall decide it is to its best interest to do so.
             7.4   Ownership; Removal;
Surrender; and Restoration.
                         (a) Ownership. Subject to Lessor’s
right to require their removal or become the owner thereof as hereinafter provided in this Paragraph 7.4, all Alterations and Utility Additions made to the Premises by Lessee shall be the property of and owned by Lessee, but considered a part of the
Premises. Lessor may, at any time and at its option, elect in writing to Lessee to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per subparagraph 7.4(b) hereof, all
Lessee Owned Alterations and Utility Installations shall, at the expiration or earlier termination of this Lease, become the property of Lessor and remain upon and be surrendered by Lessee with the Premises.
                         (b) Removal. Unless otherwise agreed in writing, Lessor may require that any or all Lessee Owned
Alterations or Utility Installations be removed by the expiration or earlier termination of this Lease, notwithstanding their installation may have been consented to by Lessor. Lessor may require the removal at any time of all or any part of any
Lessee Owned Alterations or Utility Installations made without the required consent of Lessor.
                         (c) Surrender/Restoration. Lessee shall surrender the Premises by the end of the last day of the
Lease term or any earlier termination date, with all of the improvements, parts and surfaces thereof clean and free of debris and in good operating order, condition and state of repair, ordinary wear and tear excepted. “Ordinary wear and
tear” shall not include any damage or deterioration that would have been prevented by good maintenance practice or by Lessee performing all of its obligations under this Lease. Except as otherwise agreed or specified in writing by Lessor, the
Premises, as surrendered, shall include the Utility Installations. The obligation of Lessee shall include the repair of any damage occasioned by the installation, maintenance or removal of Lessee’s Trade Fixtures, furnishings, equipment, and
Alterations and/o r Utility Installations, as well as the removal of any storage tank installed by or for Lessee, and the removal, replacement, or remediation of any soil, material or ground water contaminated by Lessee, all as may then be required
by Applicable Law and/or good service practice, Lessee’s Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee subject to its obligation to repair and restore the Premises per this Lease.
  8.     Insurance; Indemnity. 
             8.1   Payment For Insurance. Regardless
of whether the Lessor or Lessee is the Insuring Party, Lessee shall pay for all insurance required under this Paragraph 8. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be prorated to correspond to the
Lease term. Payment shall be made by Lessee to Lessor within ten (10) days following receipt of an invoice for any amount due.
             8.2   Liability Insurance.
                         (a) Carried by Lessee. Lessee shall obtain and keep in force during the term of this Lease a
Commercial General Liability policy of insurance protecting Lessee and Lessor (as an additional insured) against claims for bodily injury, personal injury and property damage based upon, involving or arising out of the ownership, use, occupancy or
maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per occurrence with an “Additional Insured-Managers or Lessors
of Premises” Endorsement and contain the “Amendment of the Pollution Exclusion” for damage caused by heat, smoke or fumes from a hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or
organizations, bu t shall include coverage for liability assumed under this Lease as an “insured contract” for the performance of Lessee’s indemnity obligations under this Lease. The limits of said insurance required by this Lease or
as carried by Lessee shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. All insurance required by this Lessee shall be primary to and not contributory with any similar insurance carried by Lessor, whose
insurance shall be considered excess insurance only.
                         (b) Carried By
Lessor. In the event Lessor is the insuring Party, Lessor shall also maintain liability insurance described in Paragraph 8.2(a), above, in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named
as an additional insured therein.
 PAGE 3

 
             8.3   Property Insurance - Building, Improvements and Rental Value.
                         (a) Building and improvements. The Insuring Party shall obtain and keep in force during the term
of this Lease a policy or policies in the name of the Lessor, with loss payable to Lessor and to the holders of any mortgages, deeds of trust or ground leases on the Premises (“Lender(s)”), insuring loss or damage to the Premises. The
amount of such insurance shall be equal to the full replacement cost of the Premises, as the same shall exist from time to time, or the amount required by Lenders, but in no event more than the commercially reasonable and available insurable value
thereof if by reason of the unique nature or age of the improvements involved, such latter amount is less than full replacement cost. If Lessor is the Insuring Party, however, Lessee Owned Alterations and Utility Installations shall be insured by
Lessee under Parag raph 8.4 rather than by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage including coverage for any additional costs
resulting from debris removal and reasonable amounts of coverage for the enforcement of any ordinance or law regulating the reconstruction or replacement of any undamaged sections of the Premises required to be demolished or removed by reason of the
enforcement of any building, zoning, safety or land use laws as the result of a covered cause of loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation
guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are
located. If such insurance coverage has a deductible cla use, the deductible amount shall not exceed $1,000 per occurrence, and Lessee shall be liable for such deductible amount in the event of an Insured Loss, as defined in Paragraph
9.1(c).
                         (b) Rental value. The Insuring Party shall, in addition,
obtain and keep in force during the term of this Lease a policy or policies in the name of Lessor, with loss payable to Lessor and Lender(s), insuring the loss of the full rental and other charges payable by Lessee to Lessor under this Lease for one
(1) year (including all real estate taxes, insurance costs, and any scheduled rental increases). Said insurance shall provide that in the event the Lease is terminated by reason of an insured loss, the period of indemnity for such coverage shall be
extended beyond the date of the completion of repairs or replacement of the Premises, to provide for one full year’s loss of rental revenues from the date of any such loss. Said insurance shall contain an agreed valuation provision in lieu of
any coinsurance clause, and the amount of coverag e shall be adjusted annually to reflect the projected rental income, property taxes, insurance premium costs and other expenses, if any, otherwise payable by Lessee, for the next twelve (12) month
period. Lessee shall be liable for any deductible amount in the event of such loss.
                         (c) Adjacent Premises. If the Premises are part of a larger building, or if the Premises are part
of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings if said increase is caused by Lessee’s acts, omissions,
use or occupancy of the Premises.
                         (d) Tenant’s Improvements.
If the Lessor is the Insuring Party, the Lessor shall not be required to insure Lessee Owned Alternations and Utility Installations unless the item in question has become the property of Lessor under the terms of this Lease. If Lessee is the
Insuring Party, the policy carried by Lessee under this Paragraph 8.3 shall insure Lessee Owned Alterations and Utility Installations.
             8.4   Lessee’s Property Insurance. Subject to the requirements of Paragraph 8.5, Lessee at its cost shall either by separate policy or, at
Lessor’s option, by endorsement to a policy already carried, maintain insurance coverage on all of Lessee’s personal property, Lessee Owned Alternations and Utility Installations in, on, or about the Premises similar in coverage to that
carried by the Insuring Party under Paragraph 8.3. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of
personal property or the restoration of Lessee Owned Alterations and Utility Installations. Lessee shall be the insuring Party with respect to the insurance required by this Paragraph 8.4 and shall provide Lessor with written evidence that such
insurance is in force. 
             8.5   Insurance Policies. Insurance required hereunder shall be in companies duly licensed to
transact business in the state where the Premises are located, and maintaining during the policy term a “General Policyholders Rating” of at least B+, V, or such other rating as may be required by a Lender having a lien on the Premises, as
set forth in the most current issue of “Best’s Insurance Guide”. Lessee shall not do or permit to be done anything which shall invalidate the insurance policies referred to in this Paragraph 8. If Lessee is the Insuring Party, Lessee
shall cause to be delivered to Lessor certified copies of policies of such insurance or certificates evidencing the existence and amounts of such insurance with the insured and loss payable clauses as required by this Lease. No such policy shall be
cancelable or subject to modification except after thirty (30) days prior written notice to Lessor. Lessee shall at least thirty (30) days prior to the expiration of such polices, furnish Lessor with evidence of renewals or “insurance
binders” evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. If the Insuring Party shall fail to procure and maintain the insurance
required to be carried by the Insuring Party under this Paragraph 8, the other Party may, but shall not be required to, procure and maintain the same, but at Lessee’s expense.
             8.6   Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor (“Waiving Party”) each hereby release and relieve
the other, and waive their entire right to recover damages (whether in contract or in tort) against the other, for loss of or damage to the Waiving Party’s property arising out of or incident to the perils required to be insured against under
Paragraph 8. The effect of such releases and waivers of the right to recover damages shall not be limited by the amount of insurance carried or required, or by any deductibles applicable thereto.
             8.7   Indemnity. Except for Lessor’s negligence and/or breach of express warranties, Lessee shall indemnify, protect, defend and hold harmless the
Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, costs, liens, judgments, penalties, permits, attorney’s and consultant’s fees,
expenses and/or liabilities arising out of, involving, or in dealing with, the occupancy of the Premises by Lessee, the conduct of Lessee’s business, any act, omission or neglect of Lessee. Its agents, contractors, employees, or invitees and
out of any Default or Breach by Lessee in the performance in a timely manner of any obligation on Lessee’s part to be performed under this Lease. The foregoing shall include, but not be limited to, the defense or pursuit of any claim or any
action or proc eeding involved therein, and whether or not (in the case of claims made against Lessor) litigated and/or produced to judgment, and whether well founded or not. In case any action or proceeding be brought against Lessor by reason of
any of the foregoing matters. Lessee upon notice from Lessor shall defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such
claim in order to be so indemnified.
             8.8   Exemption of Lessor from Liability. Lessor shall not be liable for injury or
damage to the person or goods, wares, merchandise or other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire,
steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether the said injury or
damage results from conditions arising upon the Premises or upon other portions of the building of which the Premises are a part, or from other sources or places, and regardless of whether the cause of such damage or injury or the means of repairing
the same in accessible or not. Lessor shall not be liable for any damages arisin g from any act or neglect of any other tenant of Lessor. Notwithstanding Lessor’s negligence or breach of this Lease, Lessor shall under no circumstances be liable
for injury to Lessee’s business or for any loss of income or profit therefrom.
  9.     Damage or Destruction. 
             9.1   Definitions.
                         (a) “Premises Partial Damage” shall mean damage or destruction to the improvements on
the Premises, other than Lessee Owned Alterations and Utility Installations, the repair cost of which damage or destruction is less than 50% of the then Replacement Cost of the Premises immediately prior to such damage or destruction, excluding from
such calculation the value of the land and Lessee Owned Alterations and Utility Installations.
                         (b) “Premises Total Destruction” shall mean damage or destruction to the Premises, other
than Lessee Owned Alterations and Utility Installations the repair cost of which damage or destruction is 50% or more of the then Replacement Cost of the Premises immediately prior to such damage or destruction, excluding from such calculation the
value of the land and Lessee Owned Alterations and Utility Installations.
                         (c) “Insured Loss” shall mean damage or destruction to improvements on the Premises,
other than Lessee Owned Alterations and Utility Installations, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved.
                         (d) “Replacement Cost” shall mean the cost to repair or rebuild the
improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of applicable building codes, ordinances or laws, and
without deduction for depreciation.
                         (e) “Hazardous Substance
Condition” shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises.
             9.2   Partial Damage – Insured Loss. If a Premises Partial Damage that is an insured Loss occurs, then Lessor shall, at Lessor’s expense, repair
such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full force and effect: provided, however, that Lessee shall, at Lessor’s
election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall make the insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the
foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the insuring Party shall promptly contribute the shortage in proceeds (except as to the deductible which is Lessee’s
responsibilit y) as and when required to complete said repairs. In the event, however, the shortage in proceeds was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not
commercially reasonable and available. Lessor shall have no obligation to pay for the shortage in insurance
 PAGE 4

 
 proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within ten (10) days following
receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said ten (10) day period, the party responsible for making the repairs shall complete them as soon as reasonably
possible and this Lease shall remain in full force and effect. If Lessor does not receive such funds or assurance within said period Lessor may nevertheless elect by written notice to Lessee within ten (10) days thereafter to make such restoration
and repair as is commercially reasonable with Lessor paying any shortage in proceeds in which case this Lease shall remain in full force and effect. If in such case Lessor does not so elect, then this Lease shall terminate sixty (60) days following
the occurrence of the damage or destruction. Unless otherwise agreed , Lessee shall in no event have any right to reimbursement from Lessor for any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to
flood or earthquake shall be subject to Paragraph 9.3 rather than Paragraph 9.2, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either
Party.
             9.3   Partial Damage Uninsured Loss. If a Premises Partial Damage that is not an insured Loss occurs, unless caused
by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee’s expense and this Lease shall continue in full force and effect, but subject to Lessor’s rights under Paragraph 13). Lessor may at
Lessor’s option, either: (i) repair such damage as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) give written notice to Lessee within thirty (30) days after
receipt by Lessor of knowledge of the occurrence of such damage of Lessor’s desire to terminate this Lease as of the date sixty (60) days following the giving of such notice. In the event Lessor elects to give such notice of Lessor’s
intention to terminate this Lease, Lessee shall have the right wit hin ten (10) days after the receipt of such notice to give written notice to Lessor with the required funds or satisfactory assurance thereof within thirty (30) days following
Lessee’s said commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible and the required funds are available. If Lessee does not give such notice
and provide the funds or assurance thereof within the times specified above, this Lease shall terminate as of the date specified in Lessor’s notice of termination.
             9.4   Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs (including any destruction required by any
authorized public authority), this Lease shall terminate sixty (60) days following the date of such Premises Total Destruction, whether or not the damage or destruction is an insured Loss or was caused by a negligent or willful act of Lessee. In the
event, however, that the damage or destruction was caused by Lessee, Lessor shall have the right to recover Lessor’s damages from Lessee except as released and waived in Paragraph 8.6.
             9.5   Damage Near End of Term. If at any time during the last six (6) months of the term of this Lease there is damage for which the cost to repair exceeds
one (1) month’s Base Rent, whether or not an insured Loss, Lessor may, at Lessor’s option, terminate this Lease effective sixty (60) days following the date of occurrence of such damage by giving written notice to Lessee of Lessor’s
election to do so within thirty (30) days after the date of occurrence of such damage. Provided, however, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by,
within twenty (20) days following the occurrence of the damage, or before the expiration of the time provided in such option for its exercise, whichever is earlier (“Exercise Period”), (i) exercising such option and (ii) providing Lessor
with any sho rtage in insurance proceeds (or adequate assurance thereof) needed to make the repairs. If Lessee duly exercises such option during said Exercise Period and provides Lessor with funds (or adequate assurance thereof) to cover any
shortage in insurance proceeds, Lessor shall, at Lessor’s expense repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and provide such funds or
assurance during said Exercise Period, then Lessor may at Lessor’s option terminate this Lease as of the expiration of said sixty (60) day period following the occurrence of such damage by giving written notice to Lessee of Lessor’s
election to do so within ten (10) days after the expiration of the Exercise Period, notwithstanding any term or provision in the grant of option to the contrary.
             9.6   Abatement of Rent; Lessee’s Remedies.
                         (a) In the event of damage described in Paragraph 9.2 (Partial Damage – insured), whether or
not Lessor or Lessee repairs or restores the Premises, the Base Rent, Real Property Taxes, insurance premiums, and other charges, if any, payable by Lessee hereunder for the period during which such damage, its repair or the restoration continues
(not to exceed the period for which rental value insurance is required under Paragraph 8.3 (b), shall be abated in proportion to the degree to which Lessee’s use of the Premises is impaired. Except for abatement of Base Rent, Real Property
Taxes, insurance premiums, and other charges, if any, as aforesaid, all other obligations of Lessee hereunder shall be performed by Lessee, and Lessee shall have no claim against Lessor for any damage suffered by reason of any such repair or
restoration. 
                         (b) If Lessor shall be obligated to repair or restore
the Premises under the provisions of this Paragraph 9 and shall not commence, in a substantial and meaningful way, the repair or restoration of the Premises within ninety (90) days after such obligation shall accrue, Lessee may, at any time prior to
the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice of Lessee’s election to terminate this Lease on a date not less than sixty (60) days following the giving of such
notice. If Lessee gives such notice to Lessor and such Lenders and such repair or restoration is not commenced within thirty (30) days after receipt of such notice, this Lease shall terminate as of the date specified in said notice. If Lessor or a
Lender commences the repair or restoration of the Premises within thirty (30) days after receipt of such notice, this Lease shall continue in full force and effect. “Commence” as used in this Paragraph shall mean either the unconditional
authorization of the preparation of the required plans, or the beginning of the actual work on the Premises, whichever first occurs.
 9.7   Hazardous Substance Conditions. If a Hazardous Substance
Condition occurs, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by Applicable Law and this Lease shall continue in full force and effect, but subject to
Lessor’s rights under Paragraph 13), Lessor may at Lessor’s option either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor’s expense, in which event this Lease
shall continue in full force and effect, or (ii) if the estimated cost to investigate and remediate such condition exceeds twelve (12) times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee within thirty
(30) days after receipt by Lessor or knowledge of the occurrence of such Hazardous Substance Condition of Lessor’s desire to terminate this Lease, as of the date sixty (60) days foll owing the giving of such notice. In the event Lessor elects
to give such notice of Lessor’s intention to terminate this Lease, Lessee shall have the right within ten (10) days after the receipt of such notice to give written notice to Lessor of Lessee’s commitment to pay for the investigation and
remediation of such Hazardous Substance Condition totally at Lessee’s expense and without reimbursement from Lessor except to the extent of an amount equal to twelve (12) times the then monthly Base Rent or $100,000, whichever is greater.
Lessee shall provide Lessor with the funds required of Lessee or satisfactory assurance thereof within thirty (30) days following Lessee’s said commitment. In such event this Lease shall continue in full force and effect and Lessor shall
proceed to make such investigation and remediation as soon as reasonably possible and the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the times spe cified above, this
Lease shall terminate as of the date specified in Lessor’s notice of termination. If a Hazardous Substance Condition occurs for which Lessee is not legally responsible, there shall be abatement of Lessee’s obligations under this Lease to
the same extent as provided in Paragraph 9.6(a) for a period of not to exceed twelve (12) months.
             9.8.   Termination –
Advance Payments. Upon termination of this Lease pursuant to this Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so
much of Lessee’s Security Deposit as has not been, or is not then required to be, used by Lessor under the terms of this Lease.
             9.9   Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to or destruction of the Premises with
respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith.
  10.     Real Property Taxes.

             10.1   (a) Payment of Taxes. Lessee shall pay the Real Property Taxes, as defined in Paragraph 10.2, applicable to the
Premises during the term of this Lease. Subject to Paragraph 10.1(b), all such payments shall be made at least ten (10) days prior to the delinquency date of the applicable installment. Lessee shall promptly furnish Lessor with satisfactory evidence
that such taxes have been paid. If any such taxes to be paid by Lessee shall cover any period of time prior to or after the expiration or earlier termination of the term hereof, Lessee’s share of such taxes shall be equitably prorated to cover
only the period of time within the tax fiscal year this Lease is in effect, and Lessor shall reimburse Lessee for any overpayment after such proration. If Lessee shall fail to pay any Real Property Taxes required by this Lease to be paid by Lessee,
Lessor shall have the right to pay the sam e, and Lessee shall reimburse Lessor therefor upon demand.
                         (b) Advance Payment. In order to insure payment when due and before delinquency of any or all Real
Property Taxes, Lessor reserves the right, at Lessor’s option, to estimate the current Real Property Taxes applicable to the Premises, and to require such current year’s Real Property Taxes to be paid in advance to Lessor by Lessee,
either: (i) in a lump sum amount equal to the installment due, at least twenty (20) days prior to the applicable delinquency date, or (ii) monthly in advance with the payment of the Base Rent. If Lessor elects to require payment monthly in advance,
the monthly payment shall be that equal monthly amount which, over the number of months remaining before the month in which the applicable tax installment would become delinquent (and without interest thereon), would provide a fund large enough to
fully dischar ge before delinquency the estimated installment of taxes to be paid. When the actual amount of the applicable tax bill is known, the amount of such equal monthly advance payment shall be adjusted as required to provide the fund needed
to pay the applicable taxes before delinquency. If the amounts paid to Lessor by Lessee under the provisions of this Paragraph are insufficient to discharge the obligations of Lessee to pay such Real Property Taxes as the same become due, Lessee
shall pay to Lessor, upon Lessor’s demand, such additional sums as are necessary to pay such obligations. All moneys paid to Lessor under this Paragraph may be inter-mingled with other moneys of Lessor and shall not bear interest. In the event
of a Breach by Lessee in the performance of the obligations of Lessee under this Lease, then any balance of funds paid to Lessor under the provisions of this Paragraph may, subject to proration as provided in Paragraph 10.1(a), at the option of
Lessor, be treated as an additional Security Dep osit under Paragraph 5.
             10.2   Definition of “Real Property
Taxes.” As used herein the term “Real Property Taxes” shall include any form of real estate tax or assessment, general, special, ordinary or extraordinary, and any license fee, commercial rental tax, improvement bond or bonds, levy or
tax (other than inheritance, personal income or estate taxes) imposed upon the Premises by any authority having the direct or indirect power to tax, including any city, state or federal government, or any school, agricultural, sanitary, fire,
street, drainage or other improvement district thereof, levied against any legal or equitable Interest
 PAGE 5

 
 Lessor in the Premises or in the real property of which the Premises are a part, Lessor’s right to rent or other income therefrom, and/or Lessor’s business of leasing the
Premises. The term “Real Property Taxes” shall also include any tax, fee, levy, assessment or charge, or any increase therein, imposed by reason of events occurring, or changes in applicable law taking effect during the term of this Lease,
including but not limited to a change in the ownership of the Premises or in the improvements thereon, the execution of this Lease, or any modification, amendment or transfer thereof, and whether or not contemplated by the Parties.
             10.3   Joint Assessment. If the Premises are not separately assessed, Lessee’s liability shall be an equitable proportion of the Real
Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be determined by Lessor from the respective valuations assigned in the assessor’s work sheets or such other information as may be
reasonably available. Lessor’s reasonable determination thereof, in good faith shall be conclusive.
             10.4   Personal
Property Taxes. Lessee shall pay prior to delinquency all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee contained in the Premises or
elsewhere. When possible, Lessee shall cause its Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor any of Lessee’s said personal property shall be
assessed with Lessor’s real property. Lessee shall pay Lessor the taxes attributable to Lessee within ten (10) days after the receipt of a written statement setting forth the taxes applicable to Lessee’s property or, at Lessor’s
option, as provided in Paragraph 10.1(b).
  11.     Utilities.  Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services
supplied to the Premises, together with any taxes thereon. If any such services are not separately metered to Lessee, of Lessee shall pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered with other
premises.
  12.     Assignment and Subletting. 
             12.1   Lessor’s Consent Required.
                         (a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or otherwise
transfer or encumber (collectively, “assignment”) or sublet all or any part of Lessee’s interest in this Lease or in the Premises without Lessor’s prior written consent given under and subject to the terms of Paragraph
36.
                         (b) A change in the control of Lessee shall constitute an
assignment requiring Lessor’s consent. The transfer, on a cumulative basis, of twenty-five percent (25%) or more of the voting control of Lessee shall constitute a change in control for this purpose.
                         (c) The involvement of Lessee or its assets in any transaction, or series of transactions (by way
of merger, sale, acquisition, financing, refinancing, transfer, leveraged buy-out or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee’s assets occurs, which results or will result in a reduction of the Net
Worth of Lessee, as hereinafter defined, by an amount equal to or greater than twenty-five (25%) of such Net Worth of Lessee as it was represented to Lessor at the time of the execution by Lessor of this Lease or at the time of the most recent
assignments to which Lessor has consented, or as it exist immediately prior to said transaction or transactions constituting such reduction, at whichever time said Net Worth of Lessee was or is greater, shall be considered an assignment of this
Lease by Lessee to which Lessor may reasonably withhold its consent. “Net Worth of Lessee” for purposes of this Lease shall be the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles
consistently applied.
                         (d) An assignment or subletting of
Lessee’s interest in this Lease without Lessor’s specific prior written consent shall, at Lessor’s option, be a Default curable after notice per Paragraph 13.1(c), or a noncurable Breach without the necessity of any notice and grace
period. If Lessor elects to treat such unconsented to assignment or subletting as a noncurable Breach, Lessor shall have the right to either: (i) terminate this Lease, or (ii) upon thirty (30) days written notice (“Lessor’s Notice”).
Increase the monthly Base Rent to fair market rental value or one hundred ten percent (110%) of the Base Rent than in effect, whichever is greater. Pending determination of the new fair market rental value, if disputed by Lessee, Lessee shall pay
the amount set forth in Lessor’s Notice, with any overpayment credit ed against the next installment(s) of Base Rent coming due, and any underpayment for the period retroactively to the effective date of the adjustment being due and payable
immediately upon the determination thereof. Further, in the event of such Breach and market value adjustment, (i) the purchase price of any option to purchase the Premises held by the Lessee shall be subject to similar adjustment to the then fair
market value (without the Lease being considered an encumbrance or any deduction for depreciation or obsolescence, and considering the Premises at its highest and best use and in good condition), or one hundred ten percent (110%) of the price
previously in effect, whichever is greater, (ii) any index-oriented rental or price adjustment formulas contained in this Lease shall be adjusted to require that the base index be determined with reference to the index applicable to the time of such
adjustment, and (iii) any fixed rental adjustments scheduled during the remainder of the Lease term shall be in creased in the same ratio as the new market rental bears to the Base Rent in effect immediately prior to the market value
adjustment.
                         (e) Lessee’s remedy for any breach of this
Paragraph 12.1 by Lessor shall be limited to compensatory damages and injunctive relief.
             12.2   Terms and Conditions
Applicable to Assignment and Subletting.
                         (a) Regardless of
Lessor’s consent, any assignment or subletting shall not: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or
(iii) alter the primary liability of Lessee for the payment of Base Rent and other sums due Lessor hereunder or for the performance of any other obligations to be performed by Lessee under this Lease.
                         (b) Lessor may accept any rent or performance of Lessee’s obligations from any person other
than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of any rent or performance shall constitute a waiver or estoppel of Lessor’s right to exercise
its remedies for the Default or Breach by Lessee of any of the terms, covenants or conditions of this Lease.
                         (c) The consent of Lessor to any assignment or subletting shall not constitute a consent to any
subsequent assignment or subletting by Lessee or to any subsequent or successive assignment or subletting by the sublessee. However, Lessor may consent to subsequent subletting and assignments of the sublease or any amendments or modifications
thereto without notifying Lessee or anyone else liable on the Lease or sublease and without obtaining their consent, and such action shall not relieve such persons from liability under this Lease or sublease.
                         (d) In the event of any Default or Breach of Lessee’s obligations under this Lease, Lessor
may proceed directly against Lessee, any Guarantors or any one else responsible for the performance of the Lessee’s obligations under this Lease, including the sublessee, without first exhausting Lessor’s remedies against any other person
or entity responsible therefor to Lessor, or any security held by Lessor or Lessee.
                         (e) Each request for consent to an assignment or subletting shall be in writing, accompanied by
information relevant to Lessor’s determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the
Premises, if any, together with a non-refundable deposit of $1,000 or ten percent (10%) of the current monthly Base Rent, whichever is greater, as reasonable consideration for Lessor’s considering and processing the request for consent. Lessee
agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested by Lessor.
                         (f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment
or entering into such sublease, be deemed, for the benefit of Lessor, to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said
assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented in writing.
                         (g) The occurrence of a transaction described in Paragraph 12.1(c) shall give Lessor the right
(but not the obligation) to require that the Security Deposit be increased to an amount equal to six (6) times the then monthly Base Rent, and Lessor may make the actual receipt by Lessor of the amount required to establish such Security Deposit a
condition to Lessor’s consent to such transaction.
             12.3 Additional Terms and Conditions Applicable to Subletting. The following terms
and conditions shall apply to any subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein:
                         (a) Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all rentals and
income arising from any sublease of all or a portion of the Premises heretofore or hereafter made by Lessee, and Lessor may collect such rent and income and apply same toward Lessee’s obligations under this Lease; provided, however, that until
a Breach (as defined in Paragraph 13.1) shall occur in the performance of Lessee’s obligations under this Lease, Lessee may, except as otherwise provided in this Lease, receive, collect and enjoy the rents accruing under such sublease. Lessor
shall not, by reason of this or any other assignment of such sublease to Lessor, nor by reason of the collection of the rents from a sublessee, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of
Lessee’s obli gations to such sublessee under such sublease. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee’s
obligations under this Lease, to pay to Lessor the rents and other charges due and to become due under the sublease. Sublessee shall rely upon any such statement and request from Lessor and shall pay such rents other charges to Lessor without any
obligation or right to inquire as to whether or, such Breach exists and notwithstanding any notice from or claim from Lessee to the contrary. Lessee shall have no right or claim against said subleasee, or until the Breach has been cured, against
Lessor, for any such rents and other charges so paid by said sublessee to Lessor.
                         (b) In the event of a Breach by Lessee in the performance of its obligations under this Lease,
Lessor, at its option and without any obligation to do so, may require any sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the
expiration of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any other prior Defaults or Breaches of such sublessor under such
sublease.
                         (c) Any matter or thing requiring the consent of the
sublessor under a sublease shall also require the consent of Lessor herein.
                         (d) No sublessee shall further assign or sublet all or any part of the Premises without
Lessor’s prior written consent.
                         (e) Lessor shall deliver a
copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee
 PAGE 6

 
 within the grace period, if any, specified in such notice: The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the
sublessee.
  13.     Default; Breach; Remedies. 
             13.1   Default; Breach Lessor and Lessee agree that if an attorney is consulted by Lessor in connection with a Lessee Default or Breach (as hereinafter
defined), $350.00 is a reasonable minimum sum per such occurrence for legal services and costs in the preparation and service of a notice of Default, and that Lessor may include the cost of such services and cost of such services and costs in said
notice as rent due and payable to cure said Default. A “Default” is defined as a failure by the Lessee to observe, comply with or perform any of the terms, covenants, conditions or rules applicable to Lessee under this Lease. A
“Breach” is defined as the occurrence of any one or more of the following Defaults, and, where a grace period for cure after notice is specified herein, the failure by Lessee to cure such Default prior to the expiration of the applicable
grace period, shall ent itle Lessor to pursue the remedies set forth in Paragraphs 13.2 and/or 13.3:
                         (a) The vacating of the Premises without the intention to reoccupy same, or the abandonment of the
Premises.
                         (b) Except as expressly otherwise provided in this Lease,
the failure by Lessee to make any payment of Base Rent or any other monetary payment required to be made by Lessee hereunder, whether to Lessor or to a third party, as and when due, the failure by Lessee to provide Lessor with reasonable evidence of
insurance or surety bond required under this Lease, or the failure of Lessee to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of three (3) days following written
notice thereof by or on behalf of Lessor to Lessee.
                         (c) Except as
expressly otherwise provided in this Lease, the failure by Lessee to provide Lessor with reasonable written evidence (in duty executed original form, if applicable) of (i) compliance with Applicable Law per Paragraph 6.3, (ii) the inspection,
maintenance and service contracts required under Paragraph 7.1(b), (iii) the recission of an unauthorized assignment or subletting per Paragraph 12.1(b); (iv) a Tenancy Statement per Paragraphs 16 or 37.(v) the subordination or non-subordination of
this Lease per Paragraph 30, (vi) the guaranty of the performance of Lessee’s obligation under this Lease if required under Paragraphs 1.11 and 37, (vii) the execution of any document requested under Paragraph 42 (easements), or (viii) any
other documentations or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of ten (10) days following written notice by or on behalf of Lessor to Lessee.

                        (d) A Default by Lessee as to the terms, covenants, conditions or provisions
of this Lease, or of the rules adopted under Paragraph 40 hereof, that are to be observed, complied with or performed by Lessee, other than those described in subparagraphs (a), (b) or (c), above, where such Default continues for a period of thirty
(30) days after written notice thereof by or on behalf of Lessor to Lessee; provided, however, that if the nature of Lessee’s Default is such that more than thirty (30) days are reasonably required for its cure, then it shall not be deemed to
be a Breach of this Lease by Lessee if Lessee commences such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion.
                         (e) The occurrence of any of the following events: (i) The making by lessee of any general
arrangement or assignment for the benefit of creditors; (ii) Lessee’s becoming a “debtor” as defined in 11 U.S.C §101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed
within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where possession is not restored to Lessee
within thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where such seizure is not discharged within thirty
(30) days; prov ided, however, in the event that any provision of this subparagraph (e) is contrary to any applicable law, such provision shall be of no force or effect, and not effect the validity of the remaining provisions.
                         (f) The discovery by Lessor that any financial statement given to Lessor by
Lessee or any Guarantor of Lessee’s obligations hereunder was materially false.
                         (g) If the performance of Lessee’s obligation under this Lease is guaranteed: (i) the death
of a guarantor, (ii) the termination of a guarantor’s liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a guarantor’s becoming insolvent or the subject of a bankruptcy filing, (iv) a
guarantor’s refusal to honor the guaranty, or (v) a guarantor’s breach of its guaranty obligation on an anticipatory breach basis and Lessee’s failure, within sixty (60) days following written notice by or on behalf of Lessor to
Lessee of any such event, to provide Lessor with written alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resource of Lessee and the guarantors that existed
at the time of exec ution of this Lease.
             13.2   Remedies. If Lessee fails to perform any affirmative duty or obligation of
Lessee under this Lease, within ten (10) days after written notice to Lessee (or in case of an emergency, without notice), Lessor may at its option (but without obligation to do so), perform such duty or obligation on Lessee’s behalf including
but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. The costs and expenses of any such performance by Lessor shall be due and payable by Lessee to Lessor upon invoice
therefor. If any check given to Lessor by Lessee shall not be honored by the bank upon which it is drawn, Lessor, at its option, may require all future payments to be made under this Lease by Lessee to be made only by cashier’s check. In the
event of a Breach of this Lease by Lessee, as defined in Paragraph 13.1, with or with out further notice on demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach, Lessor
may:
                         (a) Terminate Lessee’s right to possession of the
Premises by any lawful means, in which case this Lease and the term hereof shall terminate and Lessee shall immediately surrender possession of the Premises to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the worth at
the time of the award of the unpaid rent which had been earned at time of termination; (ii) the worth at time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount
of such rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss
that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee’s failure to perform the obligations under this Lease or which in the ordinary
course of things would be likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys’
fees, and that portion of the leasing commission paid by Lessor applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the prior sentence shall be computed by discounting such
amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). Efforts by Lessor to mitigate damages caused by Lessee’s Default or Breach of this Lease shall not waive Lessor’s right to
recover damages under this Paragraph. If termination of this Lease is obtained throug h the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding the unpaid rent and damages as are recoverable therein, or
Lessor may reserve therein the right to recover all or any part thereof in a separate suit for such rent and/or damages. If a notice and grace period requested under subparagraphs 13.1(b), (c) or (d) was not previously given, a notice to pay rent or
quit, or to perform or quit as the case may be; given to Lessee under any statute authorizing the forfeiture of leases for unlawful detainer shall also constitute the applicable notice for grace period purposes required by subparagraphs 13.1(b), (c)
or (d). In such case, the applicable grace period under subparagraphs 13.1(b), (c) or (d) and under the unlawful detainer statute shall run concurrently after the one such statutory notice, and the failure of Lessee to cure the Default within the
greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease enti tling Lessor to the remedies provided for in this Lease and/or by said statute.
                         (b) Continue the Lease and Lessee’s right to possession in effect (in California under
California Civil Code Section 1951.4) after Lessee’s Breach and abandonment and recover the rent as it become due, provided Lessee has the right to sublet or assign, subject only to reasonable limitations. See Paragraphs 12 and 36 for the
limitations assignment and subletting which limitations Lessee and Lessor agree are reasonable. Acts of maintenance or preservation, effort to relet the Premises or the appointment of a receiver to protect the Lessor’s interest under the Lease,
shall not constitute a termination of the Lessee’s right to possession.
                         (c) Pursue any other remedy now or hereafter available to Lessor under the laws or judicial
decisions of the state wherein the Premises are located.
                         (d) The
expiration or termination of this Lease and/or the termination of Lessee’s right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by
reason of Lessee’s occupancy of Premises.
             13.3   Inducement Recaptured in Event Of Breach. Any agreement by Lessor for
free or abated rent or other charges applicable to the Premises, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee’s entering into this lease, all of which concessions are
hereinafter referred as to “ Inducement Provisions” shall be deemed conditioned upon Lessee’s full and faithful performance of all of the terms covenants and conditions of this Lease to be performed or observed by Lessee during the
term hereof as the same may be extended. Upon the occurrence of a Breach of this Lease by Lessee, as defined in Paragraph 13.1, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further force or effect,
and any rent, other charge, bonus, inducement or consideration thereto fore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, and recoverable by Lessor as additional rent due
under this Lease, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this Paragraph shall not be deemed a waiver by Lessor of the provisions of
this Paragraph unless specifically so stated in writing by Lessor at the time of such acceptance.
             13.4   Late Charges;
Lessee hereby acknowledges that late payment by Lessee to Lessor of rent and other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such cost
include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by the terms of any ground lease, mortgage or trust deed covering the Premises. Accordingly, if any installment of rent or any
other sum due from Lessee shall not be received by Lessor or Lessor’s designee within five (5) days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a late charge equal to six
percent (6%) of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incu r by reason of late payment by Lessee. Acceptance of such late charge by Lessor shall in no
event constitute a waiver of Lessee’s Default or Breach with respect to such overdue amount, nor prevent Lessor from exercising any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder,
whether or not collected, for three (3) consecutive installment of Base Rent, then notwithstanding Paragraph 4.1 or any other provision of this Lease to the contrary, Base Rent shall, at Lessor’s option, become due and payable quarterly in
advance.
 PAGE 7

 
             13.5   Breach by Lessor. Lessor shall not be deemed in breach of this Lease unless Lessor fails
within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph 13.5, a reasonable time shall in no event be less than thirty (30) days after receipt by Lessor, and by the holders of any ground
lease, mortgage or dead of trust covering the Premises whose name and address shall have been furnished to Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however
that if the nature of Lessor’s obligation is such that more than thirty (30) days after such notice are reasonably required for its performance, then Lessor shall not be in breach of this Lease if performance is commenced within such thirty
(30) days period and thereafter diligently pursuant to completion 
  14.     Condemnation.  If the Premises or any portion thereof are taken under the power of eminent domain or sold
under the threat of the exercise of said power (all of which are herein called “condemnation”) this Lease shall terminate as to the part so taken as of the date the condemning authority takes sale or possession, whichever first occurs. If
more than ten percent (10%) of the floor area of the Premises, or more than twenty–five percent (25%) of the land area not occupied by any building, is taken by condemnation. Lessee may at Lessee’s option, to be exercised in writing within
ten (10) days after Lessor shall have given Lessee within notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning
authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except the Base Rent shall be reduced in the
same proportion as the rentable floor area of the Premises taken bears to the total rentable floor area of the building located on the Premises. No reduction of Base Rent shall occur if the only portion of the Premises taken is land on which there
is no building. Any award for the taking of all or any part of the Premises under the power of eminent domain or any payment made under threat of the exercise of such power shall be the property of Lessor, whether such award shall be made as
compensation for diminution in value of the leasehold or for the taking of the fee, or as severance damages; provided, however, that Lessee shall be entitled to any compensation separately awarded to Lessee for Lessee’s relocation expenses
and/or loss of Lessee’s Trade Fixtures. In the event that this Lease is not terminated by reason of such condemnation, Lessor shal l to the extent of its net severance damages received, over and above the legal and other expenses incurred by
the Lessor in the condemnation matter, repair any damage to the Premises caused by such condemnation, except to the extent that Lessee has been reimbursed therefor by the condemning authority. Lessee shall be responsible for the payment of any
amount in excess of such net severance damages required to complete such repair.
  15.     Broker’s Fee. 
             15.1   The brokers named in the Paragraph 1.10 are the procuring causes of this Lease.
             15.2   Upon execution of this Lease by both the Parties, Lessor shall pay to said Brokers jointly, or in such separate shares as they may mutually
designate in writing, a fee as set forth in a separate written agreement between Lessor and said Brokers for Brokerage services rendered by said Brokers to Lessor in this transaction.
             15.4   Any buyer or transferee of Lessor’s interest in this Lease, whether such transfer is by agreement or by operation of law, shall be deemed to
have assumed Lessor’s obligation under this Paragraph 15. Each Broker shall be a third party beneficiary of the provisions of this Paragraph 15 to the extent of its interest in any commission arising from this Lease and any enforce that right
directly against Lessor and its successors.
             15.5   Lessee and Lessor each represent and warrant to the other that it has had
no dealings with any person, firm, broker or finder (other than the Brokers, if any named in Paragraph 1.10) in connection with the negotiation of this Lease and/or the consummation of the transaction contemplated hereby, and that no broker and
other person, firm or entity other than said named Brokers is entitled to any commission or finder’s fee in connection with said transaction. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from
and against liability for compensation or charges which may be claimed by such unnamed broker, finder or other similary party by reason of any dealings or actions of the indemnifying Party, Including any costs, expenses, attorney’s fees
reasonably incurred with respect hereto.
             15.6   Lessor and Lessee hereby consent to and approve all agency relationships,
including any dual agencies, indicated in Paragraph 1.10.
             15.9   Nothing contained in this Assignment and no act done or
omitted by Broker pursuant to the powers and rights granted Broker hereunder shall be deemed to be a waiver by Broker of its rights and remedies, and this Assignment is made and accepted without prejudice to any of the rights and remedies possessed
by Broker. The right of Broker to collect said principal sum, interest and other indebtedness and to enforce any security therefor may be exercised by Broker either prior to, simultaneously with or subsequent to any action take by it hereunder. This
Assignment, together with the covenants and warranties herein contained, shall inure to the benefits of Broker and any subsequent transferee thereof, and shall be binding upon Lessor. Lessor’s heirs, executors, administrators, successors and
assigns and any subsequent owner of the Premises.
  16.     Tenancy Statement. 
             16.1   Each Party (as “Responding Party”) shall within ten (10) days after written notice from the other Party (the “Requesting Party”)
execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current “Tenancy Statement” form published by the American Industrial Real Estate Association, plus such additional
information, confirmation and/or statements as may be reasonably requested by the Requesting Party.
             16.2   If Lessor desires
to finance, refinance, or sell the Premises, any part thereof, or the building of which the Premises are a part, Lessee and all Guarantors of Lessee’s performance hereunder shall deliver to any potential lender or purchaser designated by Lessor
such financial statements of Lessee and such Guarantors as may be reasonably required by such lender or purchaser, including but not limited to Lessee’s financial statements for the past three (3) years. All such financial statements shall be
received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth.
  17.     Lessor’s Liability.  The term “Lessor”
as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee’s interest in the prior lease. In the event of a transfer of Lessor’s title or interest in the
Premises or in this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor at the time of such transfer or assignment. Except as provided in Paragraph 15, upon such transfer or
assignment and delivery of the Security Deposit, as aforesaid the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing,
the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined.
  18.     Severability . The invalidity of
any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof.
  19.     Interest on Past-Due
Obligations.  Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor within thirty (30) days following the date on which it was due, shall bear interest from the thirty-first (31st) day after it was due at the
rate of 12% per annum, but not exceeding the maximum rate allowed by law, in addition to the late charge provided for in Paragraph 13.4.
  20.     Time of Essence.  Time is of the
essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease.
  21.     Rent Defined.  All monetary obligations of Lessee to
Lessor under the terms of this Lease are deemed to be rent.
  22.     No Prior or Other Agreements; Broker Disclaimer.  This Lease contains all agreements between the parties with
respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own
investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any
default or breach hereof by either Party.
 PAGE 8

 
  23.     Notices. 
             23.1   All
notices required or permitted by this Lease shall be in writing and may be delivered in person (by hand or by messenger or courier service) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail with postage
prepaid or by facsimile transmission and shall be deemed sufficiently given if served in a manner specified in this Paragraph 23. The addresses noted adjacent to a Party’s signature on this Lease shall be that Party’s address for delivery
or mailing of notice purposes. Either Party may by written notice to the other specify a different address for notice purposes, except that upon Lessee’s taking possession of the Premises, the Premises shall constitute Lessee’s address for
the purpose of mailing or delivering notices to Lessee. A copy of all notices required or permitted to be given to Lessor hereunder shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time
hereafter designate by written notice to Lessee.
             23.2   Any notice sent by registered or certified mail, return receipt
requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given forty-eight (48) hours after the same is addressed as
required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given twenty-four (24) hours after delivery of the same to the United States
Postal Service or courier. If any notice is transmitted by facsimile transmission or similar means, the same shall be deemed served or delivered upon telephone confirmation of receipt of the transmission thereof, provided a copy is also delivered
via delivery or mail. If notice is received on a Sunday or legal holiday, it shall be deemed rec eived on the next business day.
  24.     Waivers.  No waiver by Lessor of the Default
or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof.
Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce
the provision or provisions of this Lease requiring such consent. Regardless of Lessor’s knowledge of a Default or Breach at the time of accepting rent, the acceptance of rent by Lessor shall not be a waiver of any preceding Default or Breach
by Lessee of any provision hereof, other than the failure of Lessee to pay the particular rent so accepted. Any payment given Lessor by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying
statements or conditions made by Lessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such
payment.
  25.     Recording.  Either Lessor or Lessee shall, upon request of the other, execute acknowledge and deliver to the other a short form memorandum of this Lease for
recording purposes. The Party requesting recordation shall be responsible for payment of any fees or taxes applicable thereto.
  26.     No Right To Holdover.  Lessee has no right to
retain possession of the Premises or any part thereof beyond the expiration or earlier termination of this Lease.
  27.     Cumulative Remedies.  No remedy or election hereunder shall
be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.
  28.     Covenants and Conditions . All provisions of this Lease to be
observed or performed by Lessee are both covenants and conditions.
  29.     Binding Effect; Choice of Law.  This Lease shall be binding upon the parties, their personal
representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are
located.
  30.     Subordination; Attornment; Non-Disturbance. 
             30.1   Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, “Security Device”), now or hereafter placed by Lessor upon the real property of which the Premises are a part, to any and all advances made on the security thereof, and to all renewals,
modifications, consolidations, replacements and extensions thereof. Lessee agrees that the Lenders holding any such Security Device shall have no duty, liability or obligation to perform any of the obligations of Lessor under this Lease, but that in
the event of Lessor’s default with respect to any such obligation, Lessee will give any Lender whose name and address have been furnished Lessee in writing for such purpose notice of Lessor’s default and allow such Lender thirty (30) days
following recei pt of such notice for the cure of said default before invoking any remedies Lessee may have by reason thereof. If any Lender shall elect to have this Lease and/or any Option granted hereby superior to the lien of its Security Device
and shall give written notice thereof to Lessee, this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof.
             30.2   Attornment. Subject to the non-disturbance provisions of Paragraph 30.3, Lessee agrees to attorn to a Lender or any other party who acquires
ownership of the Premises by reason of a foreclosure of a Security Device, and that in the event of such foreclosure, such new owner shall not: (i) be liable for any act or omission of any prior lessor or with respect to events occurring prior to
acquisition of ownership, (ii) be subject to any offsets or defenses which Lessee might have against any prior lessor, or (iii) be bound by prepayment of more than one (1) month’s rent.
             30.3   Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee’s subordination of this
Lease shall be subject to receiving assurance (a “non-disturbance agreement”) from the Lender that Lessee’s possession and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in
Breach hereof and attorns to the record owner of the Premises.
             30.4   Self-Executing. The agreements contained in this
Paragraph 30 shall be effective without the execution of any further documents; provided, however, that upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute
such writings as may be reasonably required to separately document any such subordination or non-subordination, attornment and/or non-disturbance agreement as is provided for herein.
  31.
    Attorney’s Fees . If any Party or Broker brings an action or proceeding to enforce the terms hereof or declare rights hereunder, the Prevailing Party (as hereafter defined) or Broker in any such proceeding, action,
or appeal thereon, shall be entitled to reasonable attorney’s fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term,
“Prevailing Party” shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or
Broker of its claim or defense. The attorney’s fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorney’s fees reasonably incurred. Lessor shall be entitled to
attorney’s f ees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting
Breach.
  32.     Lessor’s Access; Showing Premises; Repairs.  Lessor and Lessor’s agents shall have the right to enter the Premises at any time, in the case of an
emergency, and otherwise at reasonable times for the purpose of showing the same to prospective purchasers, lenders, or lessees, and making such alternations, repairs, improvements or additions to the Premises or to the building of which they are a
part, as Lessor may reasonably deem necessary. Lessor may at any time place on or about the Premises or building any ordinary “For Sale” signs and Lessor may at any time during the last one hundred twenty (120) days of the term hereof
place on or about the Premises any ordinary “For Lease” signs. All such activities of Lessor shall be without abatement of rent or liability to Lessee.
  33.     Auctions. 
Lessee shall not conduct, nor permit to be conducted, either voluntarily or involuntarily, any auction upon the Premises without first having obtained Lessor’s prior written consent. Notwithstanding anything to the contrary in this Lease,
Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to grant such consent.
  34.     Signs.  Lessee shall not place any sign upon the
Premises, except that Lessee may, with Lessor’s prior written consent, install (but not on the roof) such signs as are reasonably required to advertise Lessee’s own business. The installation of any sign on the Premises by or for Lessee
shall be subject to the provisions of Paragraph 7 (Maintenance, Repairs, Utility Installation, Trade Fixtures and Alterations). Unless otherwise expressly agreed herein, Lessor reserves all rights to the use of the roof and the right to install, and
all revenues from the installation of, such advertising signs on the Premises, including the roof, as do not unreasonably interfere with the conduct of Lessee’s business.
  35.    
Termination; Merger.  Unless specifically stated otherwise in writing by Lessor; the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee,
shall automatically terminate any sublease or lesser estate in the Premises; provided, however, Lessor shall, in the event of any such surrender, termination or cancellation, have the option to continue any one or all of any existing subtenancies.
Lessor’s failure within ten (10) days following any such event to make a written election to the contrary by written notice to the holder of any such lessor interest, shall constitute Lessor’s election to have such event constitute the
termination of such interest.
  36.     Consents. 
                         (a) Except for Paragraph 33 hereof (Auctions) or as otherwise provided herein, wherever in this
Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor’s actual reasonably costs and expenses (including but not limited to architects’,
attorneys’, engineers’ or other consultants’ fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent pertaining to this Lease or the Premises, including but not limited to consents to an
assignment, a subletting or the presence or use of a Hazardous Substance, practice or storage tank, shall be paid by Lessee to Lessor upon receipt of an invoice and supporting documentation therefor. Subject to Paragraph 12.2(e) (applicable to
assignment or subletting), Les sor may, as a condition to considering any such request by Lessee, require that Lessee deposit with Lessor an amount of money (in addition to the Security Deposit held under Paragraph 5) reasonably calculated by Lessor
to represent the cost Lessor will incur in considering and responding Lessee’s request. Except as otherwise provided, any unused portion of said deposit shall be refunded to Lessee without interest. Lessor’s consent to any act, assignment
of this Lease or subletting of the Premises by Lessee shall not constitute an acknowledgement that no Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any than existing Default or Breach, except as may
be otherwise specifically stated in writing by Lessor at the time of such consent.
 PAGE 9

 
                         (b) All conditions to Lessor’s
consent authorized by this Lease are acknowledged by Lessee as being reasonable. The failure to specify herein any particular condition to Lessor’s consent shall not preclude the imposition by Lessor at the time of consent of such further or
other conditions as are then reasonable with reference to the particular mailer for which consent is being given.
  38.     Quiet Possession.  Upon payment by Lessee of the rent for
the Premises and the observance and performance of all of the covenants, conditions and provisions on Lessee’s part to be observed and performed under this Lease, Lessee shall have quiet possession of the Premises for the entire term thereof
subject to all of the provisions of this Lease
  40.     Multiple Buildings.  If the Premises are part of a group of buildings controlled by Lessor. Lessee agree that it will abide
by, keep and observe all reasonable rules and regulations which Lessor may make from time to time for the management, safety, care, and cleanliness of the grounds, the parking and unloading of vehicles and the preservation of good order, as well as
for the convenience of other occupants or tenants of such other buildings and their invitees, and that Lessee will pay its fair share of common expenses incurred in connection therewith.
  41.
    Security Measures.  Lessee hereby acknowledges that the rental payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to
provide same Lessee assumes all responsibility for the protection of Premises, Lessee, its agents and invitees and their property from the acts of third parties.
  42.     Reservations.
 Lessor reserves to itself the right from time to time, to grant, without the consent or ?????? of Lessee, such easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long
as such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any such easement rights,
dedication, map or restrictions.
  43.     Performance Under Protest.  If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under
the provision hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment “under protest” and such payment shall not be regarded as a voluntary payment and there shall survive the right
on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so
much thereof as it was not legally required to pay under the provision of this Lease.
  44.     Authority.  If either Party hereto is a corporation, trust, or general or limited
partnership, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. If Lessee is a corporation, trust or partnership, Lessee shall,
within thirty (30) days after request by Lessor, deliver to Lessor evidence satisfactory to Lessor of such authority.
  45.     Conflict.  Any conflict between the printed provisions
of this Lease and the typewritten or handwritten provisions shall not be controlled by the typewritten or handwritten provisions.
  46.     Offer.  Preparation of this Lease by Lessor
or Lessor’s agent and submission of same to Lessee shall not be deemed an offer to lease to Lessee. This Lease is not intended to be binding until executed by all Parties hereto.
  47.
    Amendments.  This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. The parties shall amend this Lease from time to time to reflect any adjustments that are made
to the Base Rent or other rent payable under this Lease. As long as they do not materially change Lessee’s obligations hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by an
institutional, insurance company, or pension plan Lender in connection with the containing of normal financing or refinancing of the property of which the Premises are a part.
  48.    
Multiple Parties.  Except as otherwise expressly provided herein, if more than one person or entity is named herein as entitles Lessor or Lessee, the obligations of such Multiple Parties shall be joint and several responsibility of all persons
or entitles named herein as such Lessor or Lessee.

   49.     Addendum to Paragraph 7:  Notwithstanding anything to the contrary in Paragraph 7 above:

	 	a.	 	Lesser, at Lessor’s expense, shall be responsible for repairing any structural defects of the roof, exterior walls and foundation; and
	 	 	 
	 	b.	 	At the time Lessee seeks Lessor’s consent to any alterations or utility installations pursuant to the Lease, Lessor and Lessee shall agree in writing whether or not such alterations and utility installations may be
removed by Lessee upon the expiration or termination of the Lease.

  50.     Addendum to Paragraph 12:  Notwithstanding anything to the contrary in Paragraph 12
above, Lessee may, with Lessor’s consent, which consent shall not be unreasonably withheld, transfer the Lease or sublease the Premises, in whole or in part, to (i) a parent, subsidiary or affiliated corporation or (ii) any successor business
organization, including successor corporations, with which Lessee may merge, consolidated or reorganize; provide that such transferees, or subleases or successors shall have a combined net worth and financial condition as determined in accordance
with generally accepted accounting principles at least equal to the net worth and financial condition, similarly determined of Lessee immediately prior to such consolidated, merger or reorganization.
  51.
    Lessee will replace a portion of the air conditioning system to the Premises.  Lessee is granted the right to remove said system provided Lessee (i) establishes the quality and type of existing air conditioning
system and (ii) replaces the existing air conditioning system with a system greater than or equal to the quality and type of the existing air conditioning system and (iii) provides an air conditioning system of greater than or equal to the quality
and type of the existing air conditioning system when removing the new system and (iv) repairs any and all structural damage to the roof, exterior walls or foundation caused by the replacement and/or removal of any of the above mentioned
systems.
  52.     Tenant Improvements:  Lessor at Lessor’s sole cost and expense, shall perform the following Improvements to the premises prior to August 15, 1993.

	 	a.	 	Repair crack in the wall per Exhibit A
	 	 	 
	 	b.	 	Repair concrete sidewalk per exhibit A to allow proper run-off from roof.

  53.     Possession:  Both Lessor and Lessee acknowledge that
Lessee is in possession of the Premises prior to signing of the Lease.
  

 
 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 BROKER(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 RELY 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 BE 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:	 
	______________________________________	 	Elantec, Inc., a California Corporation	 
	______________________________________	 	______________________________________	 
	 	 	 	 
	By ___________________________________	 	By ___________________________________	 
	Name Printed: Robert Ruggles	 	Name Printed: __________________________	 
	Title: _________________________________	 	Title: _________________________________	 
	 	 	 	 
	By /s/ Robert Ruggles 	 	By /s/ David O’Brien	 
	Name Printed: Robert Ruggles	 	Name Printed: David O’Brien	 
	Title: _________________________________	 	Title: President	 
	Address: 2101 Webster Street, Suite 1500	 	Address: 1996 Tarob Court	 
	               Oakland, CA 94612	 	               Milpitas, CA 95035	 
	Tel. No. (510) 446-7770 Fax No. (___) ______	 	Tel. No. (408) 945-1323 Fax No. (408) 945-9305	 
	 	 	 	 
	 	 	 	 

 PAGE 11

	NOTICE:	 	These forms are often modified to meet changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: American Industrial Real Estate Association, 345 South
Figueroa Street, Suite M-1, Los Angeles, CA 90071. (213) 687-8777. Fax. No. (213) 687-8616.

 © Copyright 1990—By American Industrial Real Estate Association. All rights reserved.
No
part of these works may be reproduced in any form without permission in writing.

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