Document:

Loan Agreement, dated as of November 9, 2006

 EXHIBIT 10.47 
 U.S. $35,000,000 
 LOAN AGREEMENT 
 Dated as of November 9, 2006 
 between 
 GOLDMAN SACHS SPECIALTY LENDING HOLDINGS, INC. 
 as Lender, 
 XOMA LTD. 
 as Guarantor, 
 and 
 XOMA (US) LLC 
 as Borrower 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I         CERTAIN DEFINITIONS
	  	1
			
	 Section 1.01.
	  	 Definitions
	  	1
	 Section 1.02.
	  	 Interpretation; Headings
	  	10
		
	 ARTICLE II         COMMITMENT; DISBURSEMENT; FEES
	  	10
			
	 Section 2.01.
	  	 Commitment to Lend
	  	10
	 Section 2.02.
	  	 Notice of Borrowing
	  	10
	 Section 2.03.
	  	 Disbursement
	  	11
	 Section 2.04.
	  	 Commitment Not Revolving
	  	11
	 Section 2.05.
	  	 Upfront Structuring Fee
	  	11
		
	 ARTICLE III         REPAYMENT
	  	11
			
	 Section 3.01.
	  	 Amortization
	  	11
	 Section 3.02.
	  	 Optional Prepayment; Prepayment Premium
	  	11
	 Section 3.03.
	  	 Illegality
	  	12
		
	 ARTICLE IV         INTEREST; EXPENSES
	  	12
			
	 Section 4.01.
	  	 Interest Rate
	  	12
	 Section 4.02.
	  	 Payment Account
	  	13
	 Section 4.03.
	  	 Interest Reserve Account
	  	13
	 Section 4.04.
	  	 Interest on Late Payments
	  	13
	 Section 4.05.
	  	 Initial Expenses
	  	13
	 Section 4.06.
	  	 Administration and Enforcement Expenses
	  	13
		
	 ARTICLE V         TAXES
	  	14
			
	 Section 5.01.
	  	 Taxes
	  	14
	 Section 5.02.
	  	 Receipt of Payment
	  	15
	 Section 5.03.
	  	 Other Taxes
	  	15
	 Section 5.04.
	  	 Indemnification
	  	15
		
	 ARTICLE VI         PAYMENTS; COMPUTATIONS
	  	15
			
	 Section 6.01.
	  	 Making of Payments
	  	15
	 Section 6.02.
	  	 Computations
	  	16
	 Section 6.03.
	  	 Setoff or Counterclaim
	  	16
		
	 ARTICLE VII         CONDITIONS PRECEDENT
	  	16
			
	 Section 7.01.
	  	 Conditions Precedent to the Loan
	  	16
		
	 ARTICLE VIII         REPRESENTATIONS AND WARRANTIES
	  	18
			
	 Section 8.01.
	  	 Representations and Warranties of the Borrower
	  	18

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 Section 8.02.
	  	 Survival of Representations and Warranties
	  	23
		
	 ARTICLE IX         AFFIRMATIVE COVENANTS
	  	23
			
	 Section 9.01.
	  	 Maintenance of Existence
	  	23
	 Section 9.02.
	  	 Maintenance of Single Owner and Status as Disregarded Entity for Tax Purposes
	  	24
	 Section 9.03.
	  	 Treatment of U.S. Domestic Source Income
	  	24
	 Section 9.04.
	  	 Use of Proceeds
	  	24
	 Section 9.05.
	  	 Financial Statements and Information
	  	24
	 Section 9.06.
	  	 Books and Records
	  	25
	 Section 9.07.
	  	 Inspection Rights; Access
	  	25
	 Section 9.08.
	  	 Payment Account
	  	25
	 Section 9.09.
	  	 Maintenance of Insurance and Properties
	  	25
	 Section 9.10.
	  	 Governmental Authorizations
	  	25
	 Section 9.11.
	  	 Compliance with Laws and Contracts
	  	26
	 Section 9.12.
	  	 Plan Assets
	  	26
	 Section 9.13.
	  	 Notices
	  	26
	 Section 9.14.
	  	 Payment of Taxes
	  	26
	 Section 9.15.
	  	 Waiver of Stay, Extension or Usury Laws
	  	26
	 Section 9.16.
	  	 Further Assurances
	  	27
		
	 ARTICLE X         NEGATIVE COVENANTS
	  	27
			
	 Section 10.01.
	  	 Activities of the Borrower
	  	27
	 Section 10.02.
	  	 Merger; Sale of Assets
	  	27
	 Section 10.03.
	  	 Liens
	  	28
	 Section 10.04.
	  	 No Subsidiaries
	  	29
	 Section 10.05.
	  	 Investment Company Act
	  	29
	 Section 10.06.
	  	 Limitation on Additional Indebtedness
	  	29
	 Section 10.07.
	  	 Limitation on Transactions with Affiliates
	  	29
	 Section 10.08.
	  	 Interest Coverage Ratio
	  	29
	 Section 10.09.
	  	 ERISA
	  	30
		
	 ARTICLE XI         EVENTS OF DEFAULT
	  	30
			
	 Section 11.01.
	  	 Events of Default
	  	30
	 Section 11.02.
	  	 Default Remedies
	  	32
	 Section 11.03.
	  	 Right of Set-off
	  	33
	 Section 11.04.
	  	 Rights Not Exclusive
	  	33
		
	 ARTICLE XII         GUARANTEE
	  	33
			
	 Section 12.01.
	  	 Guarantee
	  	33
	 Section 12.02.
	  	 Guarantee Absolute
	  	33

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 Section 12.03.
	  	 Waivers and Acknowledgments
	  	34
	 Section 12.04.
	  	 Subrogation
	  	35
	 Section 12.05.
	  	 Continuing Guarantee
	  	35
		
	ARTICLE XIII         INDEMNIFICATION	  	36
			
	 Section 13.01.
	  	 Funding Losses
	  	36
	 Section 13.02.
	  	 Increased Costs
	  	36
	 Section 13.03.
	  	 Other Losses
	  	36
	 Section 13.04.
	  	 Assumption of Defense; Settlements
	  	37
		
	ARTICLE XIV         MISCELLANEOUS	  	37
			
	 Section 14.01.
	  	 Assignments
	  	37
	 Section 14.02.
	  	 Participations
	  	38
	 Section 14.03.
	  	 Successors and Assigns
	  	38
	 Section 14.04.
	  	 Notices
	  	38
	 Section 14.05.
	  	 Entire Agreement
	  	40
	 Section 14.06.
	  	 Modification
	  	40
	 Section 14.07.
	  	 No Delay; Waivers; etc
	  	40
	 Section 14.08.
	  	 Severability
	  	40
	 Section 14.09.
	  	 Determinations
	  	40
	 Section 14.10.
	  	 Replacement of Note
	  	40
	 Section 14.11.
	  	 Governing Law
	  	40
	 Section 14.12.
	  	 Jurisdiction
	  	40
	 Section 14.13.
	  	 Waiver of Jury Trial
	  	41
	 Section 14.14.
	  	 Waiver of Immunity
	  	41
	 Section 14.15.
	  	 Counterparts
	  	41
	 Section 14.16.
	  	 Limitation on Rights of Others
	  	41
	 Section 14.17.
	  	 No Partnership
	  	41
	 Section 14.18.
	  	 Survival
	  	41
	 Section 14.19.
	  	 Patriot Act Notification
	  	41

  

 iii 

 TABLE OF CONTENTS 
 (continued) 
  

			
	Exhibit A.	  	Form of Promissory Note
		
	Exhibit B.	  	Form of Notice of Borrowing
		
	Exhibit C.	  	Form of Security Agreement
		
	Exhibit D-1.	  	Form of Certificate of the Borrower
		
	Exhibit D-2.	  	Form of Certificate of XOMA
		
	Exhibit D-3.	  	Form of Certificate of XOMA Bermuda
		
	Exhibit E.	  	Existing Liens and Related Indebtedness
		
	Exhibit F.	  	Revenue Milestones
		
	Exhibit G.	  	Form of Assignment and Acceptance
		
	Exhibit H-1.	  	[*]
		
	Exhibit H-2.	  	[*]
		
	Exhibit I.	  	Acquisition Agreement
		
	Exhibit J.	  	XOMA BCE/HE Intellectual Property

  

 iv 

 This LOAN AGREEMENT is dated as of November 9, 2006, by and between Goldman Sachs Specialty Lending
Holdings, Inc., a Delaware corporation (the “Lender”), as Lender, XOMA (US) LLC, a Delaware limited liability company (the “Borrower”), as Borrower, and XOMA Ltd., a Bermuda company (“XOMA”), as
guarantor. The Lender, the Borrower and XOMA are hereinafter referred to collectively as the “Parties” or individually as a “Party”. 
 W I T N E S S E T H: 
 WHEREAS, the Borrower is a Delaware limited liability company that was formed
on May 31, 1999 and having its principal place of business at 2910 Seventh Street, Berkeley, California 94710; 
 WHEREAS, the Payment
Rights (as defined below) were assigned to the Borrower by XOMA (Bermuda) Ltd. (“XOMA Bermuda”) pursuant to the Acquisition Agreement, dated November 9, 2006 (the “Acquisition Agreement”); 
 WHEREAS, the Borrower entered into the Second Amended and Restated Collaboration Agreement (the
“Collaboration Agreement”), effective as of January 1, 2005, with Genentech, Inc., a Delaware corporation, with respect to certain payment rights in relation to RAPTIVA® (the “Raptiva Rights”); 
 WHEREAS, the Borrower proposes to borrow from the Lender, and the Lender proposes to lend to the Borrower, an aggregate principal amount of $35,000,000; 
 WHEREAS, in order to induce the Lender to enter into this Agreement and to extend credit hereunder, the Borrower has agreed to grant Lender a security
interest in the Payment Rights and all of the Borrower’s rights under the Acquisition Agreement and the Raptiva Rights as collateral for the Borrower’s obligations hereunder; and 
 WHEREAS, XOMA has agreed to guarantee the Borrower’s obligations hereunder; 
 NOW, THEREFORE, in consideration of the mutual promises of the Parties, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, it is mutually agreed by the Parties as follows: 
 ARTICLE I 
 CERTAIN DEFINITIONS 
 SECTION 1.01.
Definitions. As used herein: 
 “Account Bank” means The Northern Trust Company. 
 “Acquisition Agreement” has the meaning specified in the second recital hereof. 
 “Act of Insolvency” shall mean, with respect to any Person, such Person shall generally not pay its debts as such debts become due, or
shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors (or the 

  

 1 

 
equivalent); or any proceeding shall be instituted by or against such Person seeking to adjudicate it a bankrupt or insolvent (or the equivalent), or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, moratorium or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or the like, or seeking the
entry of an order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property, or such Person shall take any corporate action to authorize any of the actions set forth above in
this definition. 
 “Affiliate” with respect to any Person means any Person directly or indirectly controlling, controlled
by or under common control with, such Person. For the purposes of this Agreement, “control” (including, with correlative meaning, the terms “controlling” and “controlled”) shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
 “Agreement” shall mean this Loan Agreement. 
 “Assignee” has the meaning specified in Section 14.01(b). 
 “Assignment and
Acceptance” has the meaning specified in Section 14.01(c). 
 “Banking Day” means any day, except a Saturday,
Sunday or other day on which commercial banks in New York are required or authorized by law to close, which is also a day on which commercial banks are open for international business (including dealing in Dollar deposits) in London. 
 “BCE Program” has the meaning specified in Section 8.01(gg). 
 “Borrower” has the meaning specified in the first paragraph hereof. 
 “Borrower Change of Control” means any change of control of the Borrower that results in the Borrower not being directly controlled by
XOMA. 
 “Borrower Documents” means the Borrower’s Limited Liability Company Agreement, dated May 31, 1999, and
the certificate of formation of the Borrower. 
 “Capital Stock” of any Person means any and all shares, interests,
ownership interest units, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any preferred stock, but excluding any debt securities convertible into
such equity. 
 “CIMZIA License Agreement” has the meaning specified in the definition of “License Agreements”.

 “Closing Date” means the date upon which the conditions precedent under Article VII have been satisfied to the
satisfaction of the Lender. 
  

 2 

 “Code” means the Internal Revenue Code of 1986 and applicable U.S. Department of
Treasury regulations issued pursuant thereto in temporary or final form. 
 “Collaboration Agreement” has the meaning
specified in the third recital hereof. 
 “Collaboration Intellectual Property” means any intellectual property jointly made
or jointly owned by a XOMA Party and a third-party collaboration partner in the course of conducting research and development activities pursuant to a collaboration agreement. 
 “Commitment” means $35,000,000. 
 “Contract” has the meaning specified in Section 8.01(e). 
 [*] 
 “Default” means any condition or event which constitutes an Event of Default or which, with the giving of notice or the lapse of time or
both would, unless cured or waived, become an Event of Default. 
 “Default Rate” means, for any period for which an amount
is overdue, a rate per annum equal for each day in such period to the sum of (i) the applicable Margin, (ii) 3.00% and (iii) LIBOR determined by the Lender for such period as the Lender determines to be reasonable in the
circumstances. 
 “Designated Excess” has the meaning specified in Section 3.01(a). 
 “Dispute” means any dispute, deduction, claim, offset, defense or counterclaim of any kind between XOMA Bermuda or the Borrower on the
one hand and any Obligor (or any of its Affiliates) on the other hand relating to any Payment Right, Raptiva Right or any License Agreement, as applicable; provided, however, that “Dispute” shall not mean (a) any such
dispute, deduction, claim, offset, defense or counterclaim [*], (ii) that is not reasonably expected to have an adverse effect on either the Raptiva Rights or the Payments Rights or (iii) where the amount in dispute does not exceed
$100,000; or (b) an Act of Insolvency on the part of any Obligor or any Affiliate of any Obligor. 
 “Dollars” or
“$” means lawful money of the United States of America. 
 “ERISA” means the Employee Retirement Income
Security Act of 1974 and the regulations promulgated thereunder. 
 “ERISA Affiliate” at any time means each trade or
business (whether or not incorporated) that would, at any time, be treated, together with XOMA, the Borrower or any of their respective Subsidiaries, as a single employer under Title IV or Section 302 of ERISA or Section 412 of the Code or
any similar provision under non-U.S. law. 
 “Event of Default” has the meaning specified in Section 11.01. 

 

 3 

 “Exchange Act” means the Securities Exchange Act of 1934 and the regulations promulgated
thereunder. 
 “Excluded Taxes” means (i) any Taxes imposed on (or measured by) net income (including branch profits
Taxes) of the Lender, or any franchise or similar Taxes imposed in lieu thereof, by any Governmental Authority or taxing authority by the jurisdiction under the laws of which the Lender is organized or any jurisdiction in which the Lender is a
resident, has an office, conducts business or has another connection (other than a business or connection resulting from the Lender being a party to, performing its obligations or receiving payments under, or enforcing, this Agreement, or otherwise
arising out of the transactions contemplated by this Agreement) and (ii) in the case of a Foreign Lender, any withholding tax that is imposed on amounts payable to such Foreign Lender (a) under law in effect at the time such Foreign Lender
becomes a party to this Agreement (or designates a new Lending Office), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section 5.01(a) or (b) that is attributable to such Foreign Lender’s failure to comply with Section 5.01(b). 
 “Existing Disputes” has the meaning specified in the definition of “Dispute”. 
 “Foreign Lender” has the meaning specified in Section 5.01(b). 
 “GAAP” means the generally accepted accounting principles in the United States of America in effect from time to time. 
 “Genentech” means Genentech, Inc., a Delaware corporation. 
 [*]. 
 “Governmental
Authority” means any nation or government, any state or other political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, government. 
 “Guaranteed Obligations” has the meaning specified in Section 12.01. 
 “Indebtedness” with respect to any Person means any amount (absolute or contingent) payable by such Person as debtor, borrower, issuer,
guarantor or otherwise (i) pursuant to an agreement or instrument involving or evidencing money borrowed, the advance of credit, a conditional sale or a transfer with recourse or with an obligation to repurchase, (ii) pursuant to a lease
with substantially the same economic effect as any such agreement or instrument, (iii) pursuant to any equity interest with a mandatory obligation to repurchase, (iv) pursuant to indebtedness of a third party secured by (or for which the
holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on assets owned or acquired by such Person, whether or not the indebtedness secured thereby has been assumed, (v) pursuant to an interest
rate protection agreement, foreign currency exchange agreement or other hedging arrangement or (vi) pursuant to a letter of credit issued for the account of such Person. For the avoidance of doubt, the Indebtedness of any Person shall include
the Indebtedness of any other entity to the extent such Person is directly liable therefor as 

  

 4 

 
a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that
such Person is not liable therefor. 
 “Indemnified Liabilities” means, collectively, any and all liabilities, obligations,
losses, damages, penalties, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel for Indemnitees in connection with any investigative, administrative or judicial
proceeding commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any fees or expenses incurred by Indemnitees in enforcing the indemnity provided herein), whether
direct, indirect or consequential and whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations), on common law or equitable cause or on contract or
otherwise, that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby (including any
enforcement of any of the Loan Documents (including any sale of, collection from, or other realization upon any of the Collateral (as defined in the Security Agreement)). 
 “Indemnified Taxes” has the meaning specified in Section 5.01. 
 “Indemnitee” has the meaning specified in Section 13.03. 
 “Interest Coverage Ratio” means,
with respect to any Interest Payment Date, the ratio of (i) all payments received (net of any withholding taxes) with respect to the Payment Rights and the Raptiva Rights during the preceding two quarters to (ii) the amount of interest due
and payable on the Loan on such Interest Payment Date. 
 “Interest Payment Date” means the last day of each Interest
Period. 
 “Interest Period” means the period beginning on the Closing Date (in the case of the initial Interest Period) or
on the last day of the next preceding Interest Period (in the case of any subsequent Interest Period) and ending on the day numerically corresponding to the first day of that Interest Period in the sixth month thereafter; provided, that the
initial Interest Period shall end on March 31, 2007 and any Interest Period which would otherwise end after the Maturity Date shall end on the Maturity Date. 
 “Interest Rate” means with respect to any day during any Interest Period the sum of the Margin and LIBOR for such day. 
 “Interest Reserve Account” means the interest reserve account, which may be a sub-account of the Payment Account, established in the name of the Lender and for the benefit, and under the control, of
the Lender with account no. 1885042193 maintained with the Account Bank. 
 “Law” means any federal, state, local or foreign
law, including common law, and any regulation, rule, requirement, policy, judgment, order, writ, decree, ruling, award, approval, authorization, consent, license, waiver, variance, guideline or permit of, or any agreement with, any Governmental
Authority. 
  

 5 

 “Lender” means the Lender (as defined in the first paragraph hereof) and any assignee
under Section 14.01(b). 
 “Lending Office” means, with respect to the Lender, its New York office, and with respect to
any other Lender, the office of such Lender designated as its “Lending Office” in an Assignment and Acceptance, or such other office as may be otherwise designated in writing from time to time by such Lender to the Borrower. 
 “LIBOR” with respect to any Interest Period (or other period determined by the Lender with respect to any overdue amount) means the per
annum rate for deposits in Dollars for a term coextensive with such Interest Period (or other period) which appears on Telerate Page 3750 as of 11:00 a.m., London time, on the day that is two Banking Days preceding the first day of such Interest
Period (or other period). (For purposes of the preceding sentence, LIBOR for any Interest Period (or other period) of a length for which rates do not appear on Telerate Page 3750 shall be determined through the use of straight line interpolation by
reference to two LIBOR rates appearing on Telerate Page 3750, one of which shall be the rate for the period of time next shorter than the length of the Interest Period (or other period) and the other of which shall be the rate for the period of time
next longer than the length of the Interest Period (or other period).) If no such rate appears on Telerate Page 3750, LIBOR shall mean the per annum rate, determined on the basis of the rates at which deposits in Dollars for a term coextensive with
such Interest Period (or other period) and in an amount approximately equal to the principal amount of the Loan or overdue amount are offered by four major banks in the London interbank market, selected by the Lender, at approximately 11:00 a.m.,
London time, on the day that is two Banking Days preceding the first day of such Interest Period (or other period). If at least two such quotations are provided, LIBOR for such Interest Period (or other period) shall be the arithmetic mean of the
quotations. If fewer than two quotations are provided as requested, LIBOR for such Interest Period (or other period) shall be the arithmetic mean of the per annum rates quoted by major banks in New York City, selected by the Lender, at approximately
11:00 a.m., New York City time, on such day for loans in Dollars to leading European banks for a term coextensive with such Interest Period (or other period) and in an amount approximately equal to the principal amount of the Loan or overdue amount.

 “License Agreements” means: 
 (i) the Collaboration Agreement; 
 (ii) the Non-Exclusive Genentech License Agreement,
effective as of December 30, 1998, between XOMA Bermuda (as successor in interest to XOMA Corporation) and Genentech, Inc. (the “LUCENTIS License Agreement); and 
 (iii) the Non-Exclusive License Agreement, effective as of December 23, 1998, between XOMA Bermuda (as successor in interest to XOMA
Corporation) and UCB (as successor in interest to Celltech Therapeutics Ltd.) (the “CIMZIA License Agreement”). 
 “Lien” means any mortgage or deed of trust, pledge, hypothecation, lien, charge, attachment, set-off, encumbrance or other security interest in the nature thereof (including any 

  

 6 

 
conditional sale agreement, equipment trust agreement or other title retention agreement, a lease with substantially the same economic effect as any such
agreement or a transfer or other restriction) or other encumbrance of any nature whatsoever. 
 “Loan” at any time means the
aggregate principal amount advanced to the Borrower hereunder then outstanding. 
 “Loan Documents” means this Agreement,
the Note and the Security Agreement. 
 “LUCENTIS License Agreement” has the meaning specified in the definition of
“License Agreements”. 
 “Margin” means, with respect to any day during an Interest Period, 5.25%. 
 “Material Adverse Effect” means (i) a material adverse effect on the business, results of operations, assets or financial condition
of the Borrower, (ii) a reduction or other impairment of the value of the Payment Rights, the Raptiva Rights, the Payment Rights-Related Intellectual Property, the Raptiva Rights-Related Intellectual Property or the XOMA US Intellectual
Property or (iii) an impairment of the ability of the Borrower to perform its obligations under, or affect the validity or enforceability of, any Transaction Document to which it is party. 
 “Maturity Date” means the earlier of (i) the fifth anniversary of the Closing Date and (ii) the date of any prepayment in full
of the Loan. 
 “Note” means a promissory note, substantially in the form set forth in Exhibit A, in the amount of
the Loan, evidencing such Loan. 
 “Notice of Borrowing” has the meaning specified in Section 2.02. 
 “Notices” has the meaning specified in Section 14.04. 
 “Obligations” means, without duplication, the Loan and all present and future Indebtedness, taxes, liabilities, obligations, covenants,
duties, and debts, owing by the Borrower to the Lender, arising under or pursuant to the Loan Documents, including all principal, interest, charges, expenses, fees and any other sums chargeable to the Borrower hereunder and under the other Loan
Documents (and including any interest, fees and other charges that would accrue but for the filing of a bankruptcy action with respect to the Borrower, whether or not such claim is allowed in such bankruptcy action). 
 “Obligors” means, together, Genentech and UCB. 
 “Participant” has the meaning specified in Section 14.02. 
 “Party”
and “Parties” have the meanings specified in the first paragraph hereof. 
  

 7 

 “Payment Account” means the lock-box account established in the name of the Lender and
for the benefit, and under the control, of the Lender with account no. 1885042193 maintained with the Account Bank. 
 “Payment
Rights” has the meaning specified in the Acquisition Agreement as in effect on the Closing Date. 
 “Payment Rights-Related
Intellectual Property” means all intangible legal rights owned or controlled by XOMA Bermuda in relation to the Payment Rights pursuant to the License Agreements, whether or not filed, perfected, registered or recorded and whether now or
hereafter existing, filed, issued or acquired and any rights in or to any applications for any of the foregoing. 
 “Permitted
Liens” has the meaning specified in Section 10.03. 
 “Person” means an individual, corporation, association,
limited liability company, limited liability partnership, partnership, estate, trust, unincorporated organization or a government or any agency or political subdivision thereof. 
 “Plan” has the meaning specified in Section 10.09(a). 
 “Plan Assets” means assets of any (i) employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title I of
ERISA, (ii) plan (as defined in Section 4975(e)(1) of the Code) subject to Section 4975 of the Code or (iii) entity whose underlying assets include assets of any such employee benefit plan or plan by reason of the investment by
an employee benefit plan or other plan in such entity. 
 “Prepayment Premium” with respect to any prepayment of principal
of the Loan made on any day means an amount equal to (i) 3.00% of the amount of the Loan to be prepaid, if such prepayment occurs prior to the first anniversary of the Closing Date, (ii) [*]% of the amount of the Loan to be prepaid, if
such prepayment occurs on or after the first anniversary of the Closing Date but prior to the second anniversary of the Closing Date and (iii) zero, if such prepayment occurs on or after the second anniversary of the Closing Date. 

“Proceeding” has the meaning specified in Section 14.12. 
 “Raptiva Rights” has the meaning specified in the third recital hereof. 
 “Raptiva Rights-Related Intellectual Property” means all intangible legal rights owned or controlled by the Borrower in relation to the
Raptiva Rights and the Collaboration Agreement, whether or not filed, perfected, registered or recorded and whether now or hereafter existing, filed, issued or acquired and any rights in or to any applications for any of the foregoing. 

“Required Consents” means, [*]. 
  

 8 

 “Security Agreement” means the Security Agreement, dated the Closing Date, substantially
in the form of Exhibit C hereto, between the Lender and the Borrower securing the Obligations of the Borrower hereunder. 
 “Subsidiary” means, with respect to any Person, at any time, any entity of which more than fifty percent (50%) of the outstanding voting stock or other equity interest entitled ordinarily to vote in the election of the
directors or other governing body (however designated) is at the time beneficially owned or controlled directly or indirectly by such Person, by one or more such entities or by such Person and one or more such entities. 
 “Taxes” has the meaning specified in Section 5.01. 
 “Telerate Page 3750” means the display page so designated on Bridge’s Telerate Service (or such other page as may replace that page on that service, or such other service as may be designated by
the Lender as the information vendor for the purpose of displaying rates comparable to LIBOR). 
 “Third Party Intellectual Property
Rights” shall mean any intellectual property owned by a third party. 
 “Transaction Documents” means the Loan
Documents, the Acquisition Agreement, the License Agreements and the Borrower Documents. 
 [*]. 
 “UCB” means UCB Celltech, a branch of UCB S.A., a Belgian company, registered in the United Kingdom. 
 “U.S.” means the United States of America. 
 “Voting Stock” means Capital Stock issued by a company, or equivalent interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been suspended by the happening of such contingency. 
 “XOMA” means has the meaning set forth in the first paragraph hereof. 
 “XOMA
BCE/HE Intellectual Property” means the patents and patent applications listed in Exhibit J. 
 “XOMA Bermuda” has
the meaning set forth in the second recital hereof. 
 “XOMA Bermuda Change of Control” means any change of control of XOMA
Bermuda that results in XOMA Bermuda not being directly controlled by XOMA. 
 “XOMA Change of Control” means that
(i) any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Exchange Act), directly or indirectly, of 

  

 9 

 
Voting Stock of XOMA (or other securities convertible into such Voting Stock) representing 30% or more of the combined voting power of all Voting Stock of
XOMA; or (ii) during any period of up to 24 consecutive months, commencing after the Closing Date, individuals who at the beginning of such period were directors of XOMA shall cease for any reason to constitute a majority of the board of
directors of XOMA unless the election or nomination for election by XOMA’s shareholders of each new director was approved by the vote of at least two-thirds of the directors then still in office who were directors at the beginning of such
period. 
 “XOMA Ireland” has the meaning specified in Section 8.01(gg). 
 “XOMA Party” means each of XOMA, XOMA Bermuda and the Borrower. 
 “XOMA US Intellectual Property” means all of the following worldwide intangible
legal rights owned or controlled by the Borrower (other than with respect to Raptiva®
brand anti-CD11a), whether or not filed, perfected, registered or recorded and whether now or hereafter existing, filed, issued or acquired: (i) patents, patent disclosures, patent rights, including any and all continuations,
continuations-in-part, divisionals, reissues, reexaminations, utility, model and design patents or any extensions of these items; (ii) trademarks, service marks, trade names and copyrights; (iii) trade secrets and rights in know-how; and
(iv) any rights in or to any applications for any of the foregoing. 
 SECTION 1.02. Interpretation; Headings. Each term used in
any Exhibit to this Agreement and defined in this Agreement but not defined therein shall have the meaning set forth in this Agreement. Unless the context otherwise requires, (a) “including” means “including, without
limitation” and (b) words in the singular include the plural and words in the plural include the singular. A reference to any party to this Agreement, any other Transaction Document or any other agreement or document shall include such
party’s successors and permitted assigns. A reference to any agreement or order shall include any amendment of such agreement or order from time to time in accordance with the terms herewith and therewith. A reference to any legislation, to any
provision of any legislation or to any regulation issued thereunder shall include any amendment thereto, any modification or re-enactment thereof, any legislative provision or regulation substituted therefore and all regulations and statutory
instruments issued thereunder or pursuant thereto. The headings contained in this Agreement are for convenience and reference only and do not form a part of this Agreement. Section, Article and Exhibit references in this Agreement refer to sections
or articles of, or exhibits to, this Agreement unless otherwise specified. 
 ARTICLE II 
 COMMITMENT; DISBURSEMENT; FEES 
 SECTION 2.01. Commitment to Lend. On the terms and subject to the conditions set forth herein, the Lender shall, on the Closing Date, make a loan hereunder to the Borrower in a principal amount equal to the Commitment. 
 SECTION 2.02. Notice of Borrowing. Subject to Section 2.01, the Borrower shall, on or before the Banking Day prior to the Closing Date, give
the Lender notice, substantially in the form set forth in Exhibit B (the “Notice of Borrowing”) of the date the 

  

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Borrower wishes to borrow hereunder and the amount of the Commitment the Borrower wishes to borrow on such Closing Date. 
 SECTION 2.03. Disbursement. Subject to the conditions set forth herein, the Lender shall, on the Closing Date, credit, in same day funds, an
amount equal to (i) the amount specified in the Notice of Borrowing to the account of the Borrower which the Borrower shall have designated for such purpose in the Notice of Borrowing less (ii) the sum of the upfront structuring fee
referred to in Section 2.05 and the initial expenses referred to in Section 4.05 for which invoices have been received by the Borrower less (iii) the initial deposit in to the Interest Reserve Account pursuant to Section 4.03(a).

 SECTION 2.04. Commitment Not Revolving. The Lender’s commitment to lend hereunder is not revolving in nature, and any amount
of the Loan repaid or prepaid may not be reborrowed. 
 SECTION 2.05. Upfront Structuring Fee. The Borrower shall pay the Lender an
upfront structuring fee equal to 2.00% of the Commitment. This fee shall be payable on the Closing Date as provided in Section 2.03. 
 ARTICLE III 
 REPAYMENT 
 SECTION 3.01. Amortization. (a) On each Interest Payment Date, any cash received or held in the Payment Account in excess of (i) the interest payable on such Interest Payment Date pursuant to Section 4.01 and
(ii) the amount to be transferred into the Interest Reserve Account on such Interest Payment Date pursuant to Section 4.03 shall be applied by the Lender to pay down the outstanding principal amount of the Loan at par unless the Lender
notifies the Borrower otherwise in writing. The Lender shall have the right to specify in such notice that all or a portion of such excess amount held in the Payment Account need not be used for the repayment of principal (the “Designated
Excess”). Upon notice by the Borrower, the Designated Excess shall be transferred on the related Interest Payment Date to an account of the Borrower specified in such notice. 
 (b) Except as otherwise expressly provided herein, the Borrower shall repay the outstanding principal amount of the Loan, together with
any accrued and unpaid interest thereon, on the Maturity Date. Any amounts on deposit in the Payment Account on the Maturity Date after full repayment of the outstanding principal amount of, and the accrued unpaid interest on, the Loan together with
all other amounts then payable hereunder shall be transferred to an account of the Borrower. 
 (c) Notwithstanding anything
to the contrary herein, if amounts on deposit in the Payment Account and the Interest Reserve Account are insufficient to pay any amounts due under the Loan Documents to the Lender, the Borrower shall remain fully liable for any deficiency.

 SECTION 3.02. Optional Prepayment; Prepayment Premium. (a) The Borrower may, subject to Section 13.01 hereof, prepay the
Loan in whole or in part, together with accrued and unpaid interest on the amount prepaid plus, if applicable, the Prepayment 

  

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Premium plus, if the prepayment date is on any day other than the last day of an Interest Period, any amounts payable under Section 13.01, at any time;
provided, that any prepayment in part be made in a minimum amount of $1,000,000. If the Borrower wishes to make such a prepayment, it shall give the Lender Notice to that effect not later than the 30th day before the date of the prepayment,
specifying the date on which the prepayment is to be made and the amount to be prepaid. Such Notice shall constitute the Borrower’s irrevocable commitment to prepay that amount on that date, together with interest accrued on the amount prepaid
to but excluding the prepayment date plus, if applicable, the Prepayment Premium, plus, if the prepayment date is on any day other than the last day of an Interest Period, any amounts payable under Section 13.01. 
 (b) If an Event of Default occurs (i) prior to the first anniversary of the Closing Date or (ii) on or after the first
anniversary of the Closing Date but prior to the second anniversary of the Closing Date, then the applicable Prepayment Premium for each such period specified for optional redemptions by the Borrower pursuant to Section 3.02(a) shall be due and
payable hereunder, to the extent permitted by law, and shall be deemed part of the amounts due and payable hereunder subject to acceleration (either declared or immediate as provided in Section 11.02). 
 SECTION 3.03. Illegality. If the Lender determines at any time that any Law or treaty or any change therein or in the interpretation or
application thereof makes or will make it unlawful for the Lender to fulfill its commitment in accordance with Section 2.01, to maintain the Loan or to claim or receive any amount payable to it hereunder, the Lender shall give Notice of that
determination to the Borrower, whereupon the obligations of the Lender hereunder shall terminate. If any such Notice is given after the disbursement of the Loan, the Borrower shall prepay the Loan in full on the Interest Payment Date following the
date the Notice is given; provided, however, that, if the Lender certifies to the Borrower that earlier prepayment is necessary in order to enable the Lender to comply with the relevant Law, treaty or change and specifies an earlier
date for the prepayment, the Borrower shall make the prepayment on the date so specified. Prepayment pursuant to this Section 3.03 shall be made together with interest accrued and unpaid on the Loan to the date of prepayment and all other
amounts then payable to the Lender hereunder. Each Notice delivered pursuant to this Section 3.03 shall be effective when sent. 
 ARTICLE IV 
 INTEREST; EXPENSES 
 SECTION 4.01. Interest Rate. (a) Except as otherwise expressly provided in Section 4.04, interest shall accrue on the unpaid principal amount of the Loan for each day during each Interest Period, from
and including the first day of that Interest Period to but excluding the last day thereof, at a rate per annum equal to the Interest Rate for each such day. 
 (b) The Lender shall give Notice to the Borrower of LIBOR for each Interest Period after each determination thereof. 
 (c) Except as otherwise expressly provided herein, accrued interest on the Loan shall be payable on each Interest Payment Date.

  

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 SECTION 4.02. Payment Account. Amounts deposited in the Payment Account shall be available solely
for (i) payment of any interest on and the amortization of the Loan pursuant to Sections 3.01, 4.01 and 4.03, (ii) withdrawal and deposit into the Interest Reserve Account and (iii) reimbursement to the Lender of all other costs and
expenses hereunder, including reimbursements pursuant to Sections 4.05 and 4.06. 
 SECTION 4.03. Interest Reserve Account.
(a) On the Closing Date, the Lender shall transfer pursuant to Section 2.03(iii) into the Interest Reserve Account an amount out of the Loan proceeds equal to the amount of interest due and payable on the Loan on the first Interest Payment
Date. 
 (b) Thereafter, on each Interest Payment Date, amounts on deposit in the Payment Account shall first be transferred
into the Interest Reserve Account such that the amount on deposit therein shall equal the amount of interest payable on the Loan on the immediately following Interest Payment Date (calculated on the assumption that there shall not be any intervening
prepayments and after giving effect to any amortization payment being made in accordance with Section 3.01 on the Interest Payment Date on which such transfer occurs). 
 (c) Amounts on deposit in the Interest Reserve Account shall be withdrawn solely for the payment of interest on the Loan on any Interest
Payment Date to the extent that amounts on deposit in the Payment Account are insufficient therefor. 
 SECTION 4.04. Interest on Late
Payments. If any amount payable by the Borrower to the Lender hereunder is not paid when due (whether at stated maturity, by acceleration or otherwise), interest shall accrue on any such unpaid amounts, both before and after judgment, to the
fullest extent permitted by applicable Law, during the period from and including the applicable due date, to but excluding the day the overdue amount is paid in full, at a rate per annum equal to the Default Rate. Interest accruing under this
Section 4.04 shall be payable from time to time on demand of the Lender. 
 SECTION 4.05. Initial Expenses. The Borrower shall
reimburse the Lender, on the Closing Date as provided in Section 2.03, for all (a) reasonable costs and expenses incurred by the Lender (including all reasonable fees and expenses of outside counsel to the Lender), supported by reasonable
documentation, in connection with the negotiation, preparation, execution and delivery of this Agreement and the other Transaction Documents including any amendment or waiver with respect thereto and (b) reasonable costs and expenses, supported
by reasonable documentation, of due diligence conducted by the Lender or other parties (including outside counsel to the Lender) at the request of the Lender. 
 SECTION 4.06. Administration and Enforcement Expenses. The Borrower shall promptly reimburse the Lender on demand for all reasonable costs and expenses incurred by the Lender (including the reasonable fees and
expenses of outside counsel to the Lender) as a consequence of or in connection with (i) the negotiation, preparation or execution of any amendment to this Agreement and/or the other Transaction Documents, (ii) the administration of the
Loan, (iii) any Default or Event of Default or (iv) the preservation or enforcement of any right or remedy of the Lender under the Transaction Documents. 
  

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 ARTICLE V 
 TAXES 
 SECTION 5.01. Taxes. (a) Except as otherwise required by law, any and all
payments by the Borrower under this Agreement or the Note (including payments with respect to the Loan) shall be made free and clear of and without deduction for any and all present and future taxes, levies, duties, imposts, deductions, charges,
fees or withholdings, and all interest, penalties and other liabilities with respect thereto (collectively, “Taxes”) imposed by any Governmental Authority or taxing authority in any jurisdiction. If any Taxes other than Excluded
Taxes (“Indemnified Taxes”) shall be required by Law to be deducted from or in respect of any sum payable under this Agreement or the Note to a Lender, (i) the sum payable by the Borrower shall be increased as may be necessary
so that after making all required deductions of Indemnified Taxes the Lender shall receive an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant Governmental Authority or taxing authority in accordance with applicable Law. 
 (b) If a Lender is not a “United States person” within the meaning of Section 7701(a)(30) of the Code (a “Foreign Lender”), then such Foreign Lender shall provide to the Borrower
(i) in the case of a Foreign Lender claiming exemption from U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest,” (x) two accurate and complete original
signed copies of IRS Form W-8BEN (or successor form) properly completed and duly executed by such Foreign Lender and (y) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of
Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code or (C) a “controlled foreign corporation” described in
Section 881(c)(3)(C) of the Code, (ii) if the payments receivable by the Foreign Lender are effectively connected with the conduct of a trade or business in the United States, two accurate and complete original signed copies of IRS Form
W-8ECI (or successor form), (iii) in the case of a Foreign Lender that is entitled to benefits under an income tax treaty to which the United States is a party that reduces the rate of withholding tax on payments of interest, two accurate and
complete original signed copies of IRS Form W-8BEN (or successor form) indicating that such Foreign Lender is entitled to receive payments under this Agreement and the Note with reduced or no deduction of any United States federal income withholding
tax or (iv) in the case of a Foreign Lender acting as an intermediary, two accurate and complete original signed copies of IRS Form W-8IMY (or successor form). Such forms shall be delivered by such Foreign Lender on or prior to the date that it
becomes a Lender under this Agreement, at any time thereafter when a change in the Foreign Lender’s circumstances renders an existing form obsolete or invalid or requires a new form to be provided, and within fifteen Banking Days after a
reasonable written request of the Borrower from time to time thereafter. Notwithstanding any other provision of this Section 5.01(b), no Foreign Lender shall be required to deliver any form pursuant to this Section 5.01(b) that such
Foreign Lender is not legally able to deliver. 
  

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 (c) Each Lender that is not a Foreign Lender shall provide two properly completed and
duly executed copies of Form W-9 (or successor form) at the times specified for delivery of forms under Section 5.01(b). 
 SECTION
5.02. Receipt of Payment. Within thirty days after the date of any payment of Taxes withheld by the Borrower in respect of any payment to the Lender, the Borrower shall furnish to the Lender the original or a certified copy of a receipt
evidencing payment thereof or other evidence reasonably satisfactory to the Lender. 
 SECTION 5.03. Other Taxes. The Borrower shall
promptly pay any registration or transfer taxes, stamp duties or similar levies, and any penalties or interest that may be due with respect thereto, that may be imposed in connection with the execution, delivery, registration or enforcement of this
Agreement, the Note issued hereunder or any other Transaction Document or the filing, registration, recording or perfecting of any security interest contemplated by this Agreement. 
 SECTION 5.04. Indemnification. If the Lender pays any Taxes that the Borrower is required to pay pursuant to this Article V, the Borrower shall
indemnify it on demand in full in the currency in which such Taxes are paid, whether or not such Taxes were correctly or legally asserted, together with interest thereon from and including the date of payment to, but excluding, the date of
reimbursement at the Default Rate; provided that if the Borrower believes that any Taxes for which the Borrower has indemnified the Lender were not correctly or legally asserted, the Lender will cooperate with the Borrower (at the
Borrower’s cost and expense) in pursuing a refund of such Taxes. The Lender shall promptly notify the Borrower if any claim is made against the Lender for any Taxes for which the Borrower would be responsible to indemnify the Lender pursuant to
this Section 5.04. 
 ARTICLE VI 
 PAYMENTS; COMPUTATIONS 
 SECTION 6.01. Making of Payments. (a) Each payment required to be made by the Borrower
under this Agreement or under the Note shall be made in Dollars, by deposit in same day funds by 3:00 p.m. New York time on the date the payment is due, to the Payment Account, for the account of the Lending Office, or to any other account
designated by the Lender by Notice to the Borrower. 
 (b) Notwithstanding anything to the contrary contained herein, any
payment stated to be due hereunder or under the Note on a given day in a specified month and any Interest Period stated to end on a day numerically corresponding to a given day in a specified month thereafter shall be made or shall end (as the case
may be), (i) if there is no such given day or corresponding day, on the last Banking Day of such month or (ii) if such given day or corresponding day is not a Banking Day, on the next succeeding Banking Day, unless such next succeeding
Banking Day falls in a different calendar month, in which case such payment shall be made or such Interest Period shall end (as the case may be) on the next preceding Banking Day. 
  

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 SECTION 6.02. Computations. Interest shall be computed on the basis of a 360-day year and actual
days elapsed. 
 SECTION 6.03. Setoff or Counterclaim. Each payment by the Borrower under this Agreement or under the Note shall be
made without setoff or counterclaim. Lender shall have the right to charge to the Payment Account and setoff any and all amounts owed by the Borrower under this Agreement. 
 ARTICLE VII 
 CONDITIONS PRECEDENT 
 SECTION 7.01. Conditions Precedent to the Loan. The obligation of the Lender to make the Loan on the Closing Date is subject to the fulfillment,
to the satisfaction of the Lender, of all of the following conditions precedent in addition to the conditions specified in Article II: 
 (a) The Borrower shall have executed and delivered to the Lender the Note, dated the Closing Date. 
 (b) The Lender shall have received on or before the Closing Date an executed copy of: 
 (i) a certificate of the
Borrower, dated the Closing Date, substantially in the form set forth in Exhibit D-1 hereto together with the attachments specified therein; 
 (ii) a certificate of XOMA, dated the Closing Date, substantially in the form set forth in Exhibit D-2 hereto together with the attachments specified therein; 
 (iii) a certificate of XOMA Bermuda, dated the Closing Date, substantially in the form set forth in Exhibit D-3 hereto together
with the attachments specified therein; 
 (iv) an opinion of Conyers Dill & Pearman, special Bermuda counsel to XOMA
and XOMA Bermuda, dated the Closing Date, in form and substance satisfactory to the Lender; 
 (v) an opinion of Cahill
Gordon & Reindel LLP, U.S. counsel to the XOMA Parties, dated the Closing Date, in form and substance satisfactory to the Lender; 
 (vi) an opinion of Christopher J. Margolin, Vice President, General Counsel and Secretary of XOMA, dated the Closing Date, in form and substance satisfactory to the Lender; and 
 (vii) an opinion of Anne Dollard, Senior Director of Intellectual Property of XOMA, dated the Closing Date, in form and substance
satisfactory to the Lender. 
 (c) The Borrower shall have delivered to the Lender certified true copies of the Borrower
Documents. 
  

 16 

 (d) The Borrower shall have executed and delivered to the Lender the Loan Documents and
such other documents as the Lender may reasonably request, in each case, in form and substance satisfactory to the Lender. 
 (e) The Borrower and XOMA Bermuda shall have executed and delivered to the Lender the Acquisition Agreement in the form set forth in Exhibit I. 
 (f) The Transaction Documents shall be in full force and effect. 
 (g) The Lender shall have
received the upfront structuring fee set forth in Section 2.05 and all other fees and expenses due and payable to the Lender on the Closing Date under this Agreement and the other Transaction Documents. 
 (h) The organizational structure and capital structure of the Borrower shall be to the satisfaction of the Lender. 
 (i) No event shall have occurred and be continuing that constitutes a Default or an Event of Default under this Agreement or a similar
event under the other Transaction Documents and no such event will occur or will have occurred by reason of the Loan. 
 (j)
The representations and warranties made by the Borrower in Article VIII hereof and in the other Transaction Documents shall be true and correct as of the Closing Date, before and after giving effect to the Loan. 
 (k) The Borrower shall have delivered to the Lender certified true copies of the License Agreements, including all amendments, supplements
or other modifications thereto, and each License Agreement and amendment, supplement or other modification thereto shall be in full force and effect. 
 (l) All filings, recordings and other actions that are necessary or reasonably requested by the Lender in order to establish, protect, preserve and perfect the security interest in the assets of the Borrower as
provided in the Security Agreement as a valid and perfected first priority security interest with respect to such assets shall have been duly effected. 
 (m) All necessary governmental and third-party approvals, consents and filings, including in connection with the Loan and the acquisition of the Payment Rights by the Borrower pursuant to the Acquisition Agreement
shall have been obtained or made and be in full force and effect. 
 (n) The acquisition by the Borrower and the assignment by
XOMA Bermuda of the Payment Rights shall have been consummated pursuant to the Acquisition Agreement, and no provision thereof shall have been waived, amended, supplemented or otherwise modified in connection with such acquisition without the
written consent of the Lender. 
 (o) The Lender shall have conducted a background check of the officers of the XOMA Parties
and the results shall be to the satisfaction of the Lender. 
  

 17 

 (p) The Borrower and the Obligors shall have executed and the Borrower shall have
delivered the Required Consents. 
 (q) The Lender shall have received from the Borrower (i) an executed copy of the
Release of Security Agreement in Patents between XOMA and Genentech, (ii) evidence to the satisfaction of the Lender that such release was filed with the U.S. Patent and Trademark Office and (iii) evidence to the satisfaction of the Lender
that a UCC-3 termination statement was filed with the office of the Secretary of State of the State of Delaware. 
 ARTICLE VIII 

REPRESENTATIONS AND WARRANTIES 
 SECTION 8.01. Representations and Warranties of the Borrower. The Borrower makes the representations and warranties set forth below to the Lender. Except as otherwise noted, the Borrower makes the representations and warranties set
forth below as of the Closing Date: 
 (a) The Borrower is a limited liability company duly organized, validly existing and in
good standing under the laws of Delaware and has the power and authority (including any required license, permit or other approval from any Governmental Authority) to own its assets, to carry on its business as currently conducted and to consummate
the transactions contemplated in, and to perform its obligations under, this Agreement and the other Transaction Documents to which it is party or by which it is bound. 
 (b) The Borrower has taken all necessary action to authorize its execution and delivery of this Agreement and the other Transaction
Documents to which it is party, the performance of its obligations under this Agreement and the other Transaction Documents to which it is party or by which it is bound and the consummation of the transactions contemplated hereby and thereby.

 (c) This Agreement and each other Transaction Document to which the Borrower is party has been duly executed and delivered
by the Borrower, and each constitutes a valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium and similar laws affecting creditors’
rights generally, and subject to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
 (d) No authorization or action of any kind by any Governmental Authority is necessary to authorize the transactions contemplated by this Agreement and each other Transaction Document or required for the validity or
enforceability against the Borrower of this Agreement and each other Transaction Document, except any filings with a Governmental Authority required to perfect the Lender’s security interest under the Security Agreement. 
 (e) Except for the Required Consents, no consent or approval of, or notice to, any Person is required by the terms of any agreement,
contract, lease, commitment, license 

  

 18 

 
and other arrangement (each a “Contract”) for the execution or delivery of, or the performance of the obligations of the Borrower under,
this Agreement and the other Transaction Documents to which the Borrower is party or the consummation of the transactions contemplated hereby or thereby, and such execution, delivery, performance and consummation will not result in any breach or
violation of, or constitute a default under the Borrower Documents or any material Contract, instrument or Law applicable to the Borrower or any of its assets. 
 (f) There are no actions, proceedings or claims pending or, to the knowledge of the Borrower, threatened the adverse determination of
which could reasonably be expected to have a Material Adverse Effect. 
 (g) Since the acquisition of the Payment Rights and
the Raptiva Rights by the Borrower there have been no events that could reasonably be expected to reduce or otherwise impair the value of such rights. 
 (h) No Default or Event of Default has occurred and is continuing, and no such event will occur upon the making of the Loan. 
 (i) The Borrower has good title to its assets free and clear of all Liens, other than Liens created hereby and by the Security Agreement
and the Permitted Liens. 
 (j) With respect to each Contract that is material to the business of the Borrower, (i) each
such Contract is a valid and binding agreement and each such Contract is in full force and effect, and (ii) the Borrower is in compliance with each such Contract and has no knowledge of any default under any such Contract which default has not
been cured or waived. 
 (k) All written information heretofore, herein or hereafter supplied to the Lender by or on behalf of
the Borrower or any other XOMA Party in connection with the Loan and the other transactions contemplated hereby has been, is and will be accurate and complete. All representations and warranties made by the Borrower or any other XOMA Party in any of
the other Transaction Documents to which it is party are true and correct. 
 (l) The consolidated balance sheet of XOMA and
its consolidated Subsidiaries as of December 31, 2005 and the related consolidated statement of operations and cash flows for the fiscal year then ended, accompanied by an opinion of Ernst & Young LLP, independent registered public
accountants, set forth in XOMA’s 2005 Form 10-K, and unaudited consolidated balance sheet of XOMA and its consolidated Subsidiaries as of June 30, 2006 and the related consolidated statement of operations and cash flows for the two fiscal
quarters then ended duly certified by the chief financial officer of XOMA, copies of which have been furnished to the Lender, fairly present the consolidated financial condition of XOMA and its consolidated Subsidiaries for the periods ended on such
dates, all in accordance with GAAP consistently applied. Since the consolidated balance sheet of XOMA and its consolidated Subsidiaries as at December 31, 2005, there has been no material adverse change in the business, financial position or
results of operations of the XOMA and its consolidated Subsidiaries. 
  

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 (m) The Borrower has no Indebtedness other than the Loan and the loans of up to
$50,000,000 pursuant to the secured note agreement, dated May 26, 2005, between the Borrower and Chiron Corporation. 
 (n) As of the date hereof and after giving effect to the Loan: 
 (i) The aggregate value of the assets of the
Borrower, at fair value and present fair salable value, exceeds (i) its total liabilities and (ii) the amount required to pay such liabilities as they become absolute and matured in the normal course of business; 
 (ii) The Borrower has the ability to pay its debts and liabilities as they become absolute and matured in the normal course of business;
and 
 (iii) The Borrower does not have an unreasonably small amount of capital with which to conduct its business.

 (o) The Borrower has no Subsidiaries. 
 (p) The Borrower is in compliance with all applicable Laws. 
 (q) None of the transactions contemplated in this Agreement (including, without limitation, the borrowing hereunder and the use of
proceeds thereof) will violate or result in a violation of Section 7 of the Exchange Act, including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. 
 (r) The Borrower is not an investment company subject to regulation under the Investment Company Act of 1940. 
 (s) The Borrower has timely filed all tax returns required to be filed by it and has paid all taxes due reported on such returns or
pursuant to any assessment received by the Borrower, except for failures to file tax returns or pay taxes that, individually, and in the aggregate, are not reasonably expected to result in a Material Adverse Effect. Any charges, accruals or reserves
on the books of the Borrower in respect of taxes are adequate except for inadequacies that, individually, and in the aggregate, are not reasonably expected to result in a Material Adverse Effect. The Borrower has had no material liability for any
taxes imposed on or with respect to its net income (except for state or local income or franchise taxes). The fact that the income of the Borrower has been subject to taxes in the hands of XOMA is not a breach of this representation provided the
Borrower has had, and will have, no liability for those taxes. The Borrower has fulfilled all of its obligations with respect to withholding taxes except for failures that, individually, and in the aggregate, are not reasonably expected to result in
a Material Adverse Effect. 
 (t) XOMA has timely filed all tax returns required to be filed by it and has paid all taxes due
reported on such returns or pursuant to any assessment received by XOMA except for failures to file tax returns or pay taxes that, individually, and in the aggregate, 

  

 20 

 
are not reasonably expected to result in a Material Adverse Effect. Any charges, accruals or reserves on the books of XOMA in respect of taxes are adequate
except for inadequacies that, individually, and in the aggregate, are not reasonably expected to result in a Material Adverse Effect. XOMA has treated all its U.S. domestic source income attributable to income of the Borrower and XOMA Bermuda, as
effectively connected with its conduct of a U.S. trade or business within the meaning of Section 864 of the Code. 
 (u)
The transfer of the Payment Rights from XOMA Bermuda to the Borrower pursuant to the Acquisition Agreement will not result in any tax under Section 884 of the Code. 
 (v) At the end of its taxable year ending December 31, 2005, XOMA had net operating losses for U.S. federal income tax purposes of at
least $80,000,000 of which at least $40,000,000 will not be subject to limitation under Section 382 of the Code and will be available to offset income effectively connected with a trade or business engaged in by XOMA in the United States for
taxable years beginning on or after January 1, 2006 and on or prior to the Maturity Date. 
 (w) The Borrower shall have
no liability for net income taxes (except for state or local income or franchise taxes, or foreign income taxes not related to the Payment Rights or Raptiva Rights). Payments with respect to the Payment Rights or Raptiva Rights shall not be subject
to any taxes imposed on or with respect to gross or net income (except state or local income or franchise taxes) or withheld or deducted from such payments and the Borrower will have no liability as a withholding agent with respect to such payments,
provided that this representation shall not be breached if such taxes (i) are imposed by a Governmental Authority or taxing authority outside of the United States, (ii) result from a change in Law after the date hereof and (iii) do
not exceed in the aggregate $75,000 in any calendar year. The foregoing representations (x) shall not be violated solely by the fact that the income of the Borrower is subject to taxes in the hands of XOMA provided the Borrower has no liability
for those taxes and (y) shall survive the Closing Date and be made on a continuous basis until the Loan is repaid in full. 
 (x) The terms (not including economic terms) of the Collaboration Agreement, dated November 1, 2006, between the Borrower and Takeda Pharmaceutical Company Limited, are substantially similar to the terms (not including economic terms)
of the Schering Collaboration Agreement, dated May 22, 2006, between the Borrower and Schering Corporation, acting through its Schering-Plough Research Institute division. 
 (y) Neither XOMA, the Borrower nor any ERISA Affiliate has ever incurred or expects to incur any liability under Title IV or
Section 302 of ERISA or Section 412 of the Code or any similar non-U.S. law or maintains or contributes to, or is or has been required to maintain or contribute to, any employee benefit plan (as defined in Section 3(3) of ERISA)
subject to Title IV or Section 302 of ERISA or Section 412 of the Code or any non-U.S. law. The consummation of the transactions contemplated by this Agreement will not constitute or result in any non-exempt prohibited transaction under
Section 406 of ERISA, Section 4975 of the Code or substantially similar provisions under 

  

 21 

 
any foreign or U.S. federal, state or local laws, rules or regulations. Neither XOMA, the Borrower nor any ERISA Affiliate has incurred any liability with
respect to any obligation to provide benefits, including death or medical benefits, with respect to any person beyond their retirement or the termination of service other than coverage mandated by law. 
 (z) XOMA Technology Ltd. (a) owns and has good and exclusive title to, free and clear of any Lien, and has independently developed or
acquired all XOMA BCE/HE Intellectual Property, or (b) has the valid right or license, free and clear of any Lien, to all BCE/HE Intellectual Property. 
 (aa) Neither the execution and delivery or effectiveness of this Agreement nor the performance of the Borrower’s obligations
hereunder will cause the forfeiture or termination of, or give rise to a right of forfeiture or termination of, any XOMA US Intellectual Property (other than Collaboration Intellectual Property), or impair the right of the Borrower or any licensee
(including any Obligor) to use, possess, sell or license any XOMA US Intellectual Property (other than Collaboration Intellectual Property) or portion thereof, or require payment of any kind to any third party. 
 (bb) Each item of XOMA BCE/HE Intellectual Property is valid and subsisting (or in the case of applications, applied for), all
registration, maintenance and renewal fees currently due in connection with such XOMA BCE/HE Intellectual Property have been paid, and all documents, recordations and certificates in connection with such XOMA BCE/HE Intellectual Property required to
be filed have been filed with the relevant patent authorities in the United States or foreign jurisdictions, as the case may be, for the purposes of prosecuting, maintaining and perfecting such XOMA BCE/HE Intellectual Property. 
 (cc) Other than [*], there are no legal actions, suits or proceedings pending (or, to the knowledge of the Borrower, threatened) against
the Borrower, XOMA or any of its Subsidiaries alleging that it or they have infringed or are currently infringing any Third Party Intellectual Property or alleging that the XOMA BCE/HE Intellectual Property is not valid or unenforceable. 

(dd) The Borrower has not received any written opinion of counsel that
CIMZIATM, RAPTIVA® or
LUCENTISTM infringes or misappropriates any Third Party Intellectual Property Rights. 
 (ee) To the knowledge of the Borrower, no current or former employee, consultant or independent contractor of the Borrower has any right,
license, claim or interest whatsoever in or with respect to any BCE/HE Intellectual Property. 
 (ff) The Borrower, by
ownership, license or covenant not to sue, has the right to use all XOMA US Intellectual Property (other than Collaboration Intellectual Property) which is necessary for use in connection with its business as presently conducted and as proposed to
be conducted. 
  

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 (gg) To the knowledge of Borrower, there is no existing infringement by any third party
of any of the XOMA US Intellectual Property (other than Collaboration Intellectual Property) that is necessary for use in connection with the Borrower’s business as presently conducted, other than infringement by third parties of the patent
rights listed in Exhibit J under the heading “XOMA Patent Rights — Bacterial Expression” of which the Borrower is aware as a result of the efforts of its Affiliate, XOMA Ireland Ltd. (“XOMA Ireland”), in
connection with XOMA Ireland’s on-going bacterial cell expression technology out-licensing program (the “BCE Program”), which third parties XOMA Ireland has approached, or intends to approach, as part of the BCE Program to
determine whether such third parties will take a license to such patent rights, pay for a release from past infringement thereof and/or reach some other appropriate form of accommodation. 
 (hh) Other than [*], there are no legal actions, suits or proceedings pending (or, to the knowledge of the Borrower, threatened) against
the Borrower, XOMA or any of its Subsidiaries challenging their rights in or to, or the validity or enforceability of, the XOMA US Intellectual Property (other than Collaboration Intellectual Property). 
 (ii) There are no legal actions, suits or proceedings pending (or, to the knowledge of the Borrower, threatened) against the Borrower,
XOMA or any of its Subsidiaries alleging that the business of the Borrower infringes or otherwise violates, or that the commercialization of any of the products under development by the Borrower would infringe or otherwise violate, any patent,
trademark, copyright, trade secret or other proprietary rights of others. 
 (jj) All of the XOMA US Intellectual Property
(other than Collaboration Intellectual Property) was filed and is being maintained or prosecuted in accordance with the applicable rules and regulations relating thereto. 
 SECTION 8.02. Survival of Representations and Warranties. All representations and warranties of the Borrower contained in this Agreement shall survive the execution, delivery and acceptance thereof by the
Parties and the closing of the transactions described in this Agreement. 
 ARTICLE IX 
 AFFIRMATIVE COVENANTS 
 SECTION 9.01. Maintenance of Existence. The
Borrower shall at all times (a) preserve, renew and maintain in full force and effect its legal existence and good standing as a limited liability company under the Laws of the jurisdiction of its organization; (b) take all reasonable
action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;
and (c) preserve or renew all XOMA US Intellectual Property, the non-preservation of which could reasonably be expected to have a Material Adverse Effect. 
  

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 SECTION 9.02. Maintenance of Single Owner and Status as Disregarded Entity for Tax Purposes. The
Borrower shall at all times be a “disregarded entity” for U.S. federal income tax purposes owned by XOMA. 
 SECTION 9.03.
Treatment of U.S. Domestic Source Income. XOMA will treat all payments with respect to the Payment Rights and the Raptiva Rights as effectively connected with its conduct of a U.S. trade or business within the meaning of Section 864 of
the Code. 
 SECTION 9.04. Use of Proceeds. The Borrower shall use the net proceeds of the Loan received by it (i) for general
corporate purposes, (ii) to fund the acquisition of the Payment Rights pursuant to the Acquisition Agreement and (iii) to pay all fees and expenses payable by the Borrower pursuant to the Transaction Documents. 
 SECTION 9.05. Financial Statements and Information. (a) In the event that any such information need not to be filed with the Securities and
Exchange Commission pursuant to Section 13 or 15(d) of the Exchange Act, the Borrower shall furnish to the Lender, on or before the thirtieth day after the close of each quarter of each fiscal year, the unaudited consolidated balance sheet of
XOMA as at the close of such quarter and unaudited consolidated statement of operations and cash flows of XOMA for such quarter, duly certified by the chief financial officer of XOMA as having been prepared in accordance with GAAP. Concurrently with
the delivery or filing of the documents described in the preceding sentence, the Borrower shall furnish to the Lender a certificate of the chief financial officer, chief accounting officer or treasurer of XOMA, which certificate shall
(A) include a statement that such officer has no knowledge, except as specifically stated, of any condition, event or act which constitutes a Default or Event of Default and (B) set forth in reasonable detail the calculations necessary to
demonstrate compliance with Section 10.08 on the date of such balance sheet. In the event that generally accepted accounting principles used in the preparation of such financial statements described in the first sentence above shall differ from
GAAP, XOMA shall also provide, if necessary for the determination of compliance with Section 10.08, a statement of reconciliation conforming such financial statements to GAAP. 
 (b) In the event that any such information need not be filed with the Securities and Exchange Commission pursuant to Section 13 or
15(d) of the Exchange Act, the Borrower shall furnish to the Lender, on or before the forty-fifth day after the close of each fiscal year, XOMA’s audited financial statements as at the close of such fiscal year, including the consolidated
balance sheet as at the end of such fiscal year and consolidated statement of operations and cash flows of XOMA for such fiscal year, in each case accompanied by the report thereon of independent registered public accountant of nationally recognized
standing. Concurrently with the delivery or filing of the documents described in the preceding sentence, the Borrower shall furnish to the Lender a certificate of the chief financial officer, chief accounting officer or treasurer of XOMA, which
certificate shall (A) include a statement that such officer has no knowledge, except as specifically stated, of any condition, event or act which constitutes a Default or Event of Default and (B) set forth in reasonable detail the
calculations necessary to demonstrate compliance with Section 10.08 on the date of such financial statements. In the event that generally accepted accounting principles used in the preparation of such financial 

  

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statements described in the first sentence above shall differ from GAAP, XOMA shall also provide, if necessary for the determination of compliance with
Section 10.08, a statement of reconciliation conforming such financial statements to GAAP. 
 (c) The Borrower shall,
promptly upon receipt thereof, forward or cause to be forwarded to the Lender copies of all notices, reports, updates and other information regarding the License Agreements, the Payment Rights and the Raptiva Rights received from the Obligors.

 (d) The Borrower shall furnish or cause to be furnished to the Lender from time to time such other information regarding
the financial position, assets or business of the Borrower or any other XOMA Party or its compliance with any Transaction Document to which it is a party as the Lender may from time to time reasonably request. 
 SECTION 9.06. Books and Records. The Borrower shall keep proper books, records and accounts in which entries in conformity with sound business
practices and all requirements of Law applicable to it shall be made of all dealings and transactions in relation to its business, assets and activities and as shall permit the preparation of the consolidated financial statements of XOMA in
accordance with GAAP. 
 SECTION 9.07. Inspection Rights; Access. The Borrower shall, one occasion per year, or, if a Default or Event
of Default shall have occurred and be continuing, at all times permit representatives of the Lender to examine its assets, books and records upon reasonable Notice during normal business hours. The Borrower shall allow the Lender reasonable access
to its managers and/or officers. 
 SECTION 9.08. Payment Account. Borrower shall use commercially reasonable efforts to ensure that
at all times the Obligors shall make all payments with respect to the Payment Rights and the Raptiva Rights directly into the Payment Account. In the event that payments with respect to the Payment Rights or Raptiva Rights are directed to the
Borrower, the Borrower shall promptly transfer all such payments to the Payment Account. 
 SECTION 9.09. Maintenance of Insurance and
Properties. The Borrower shall maintain and preserve all of its properties that are used and useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted. The Borrower shall maintain and preserve the
value as of the Closing Date, without any reduction or impairment, of the Payment Rights and the Raptiva Rights. The Borrower shall maintain with financially sound and reputable insurance companies, insurance on all of its assets in at least such
amounts and against at least such risks as are usually insured against in the same general area by companies engaged in the same or a similar business. The Borrower shall furnish to the Lender from time to time upon written request full information
as to the insurance carried. 
 SECTION 9.10. Governmental Authorizations. The Borrower shall obtain, make and keep in full force and
effect all authorizations from and registrations with Governmental Authorities that may be required for the validity or enforceability against the Borrower of this Agreement and the other Transaction Documents to which it is a party. 
  

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 SECTION 9.11. Compliance with Laws and Contracts. (a) The Borrower shall comply with all
applicable Laws and perform its obligations under all Contracts relative to the conduct of its business, including the Transaction Documents to which it is party. 
 (b) The Borrower shall at all times comply with the margin requirements set forth in Section 7 of the Exchange Act and any
regulations issued pursuant thereto, including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II. 
 (c) The Borrower shall use commercially reasonable efforts to enforce the obligations of the Obligors in respect of the Payment Rights and
the Raptiva Rights and shall, upon receipt of reasonable instruction from the Lender, exercise all rights and remedies available to it against the Obligors in respect of the Payment Rights, the Raptiva Rights and the Collaboration Agreement.

 SECTION 9.12. Plan Assets. Neither XOMA, Borrower nor any ERISA Affiliate shall take any action that causes it to be deemed to be
or hold Plan Assets at any time. 
 SECTION 9.13. Notices. (a) The Borrower shall promptly give written Notice to the Lender of
each Default or Event of Default and each other event that has or could reasonably be expected to have a Material Adverse Effect or that could reduce or otherwise impair the value of the Payment Rights or the Raptiva Rights. 
 (b) The Borrower shall promptly give written Notice to the Lender upon receiving notice, or otherwise becoming aware, of any default or
event of default under the License Agreements or the Acquisition Agreement. 
 (c) The Borrower shall, promptly after becoming
aware thereof, give written Notice to the Lender of any litigation or proceedings to which the Borrower is a party or which could reasonably be expected to have a Material Adverse Effect or that could reduce or otherwise impair the value of the
Payment Rights or the Raptiva Rights. 
 (d) The Borrower shall, promptly after becoming aware thereof, give written Notice to
the Lender of any litigation or proceedings challenging the validity of the Payment Rights, the Raptiva Rights, the License Agreements, the Acquisition Agreement, the Payment Rights-Related Intellectual Property or the Raptiva Rights-Related
Intellectual Property or any of the transactions contemplated therein. 
 SECTION 9.14. Payment of Taxes. The Borrower shall pay all
material taxes of any kind imposed on or in respect of its income or assets before any penalty or interest accrues on the amount payable and before any Lien on any of its assets exists as a result of nonpayment. 
 SECTION 9.15. Waiver of Stay, Extension or Usury Laws. The Borrower will not at any time, to the extent that it may lawfully not do so, insist
upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law that would prohibit or forgive the Borrower from paying all or any portion of the principal of or premium,
if any, or interest on the Loan as contemplated herein, wherever enacted, now or at any time hereafter in force, or that may affect the covenants or the 

  

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performance of this Agreement; and, to the extent that it may lawfully do so, the Borrower hereby expressly waives all benefit or advantage of any such law
and expressly agrees that it will not hinder, delay or impede the execution of any power herein granted to the Lender, but will suffer and permit the execution of every such power as though no such law had been enacted. 
 SECTION 9.16. Further Assurances. The Borrower shall promptly, at its sole cost and expense, execute and deliver to the Lender such further
instruments and documents, and take such further action, as the Lender may, at any time and from time to time, reasonably request in order to carry out the intent and purpose of this Agreement and the other Transaction Documents to which it is a
party and to establish and protect the rights, interests and remedies created, or intended to be created, in favor of the Lender hereby and thereby. The Borrower shall pay, or reimburse the Lender for, any and all reasonable fees, costs and expenses
of whatever kind or nature incurred in connection with the creation, preservation and protection of the Lender’s Lien on the assets of the Borrower under the Security Agreement, including reasonable legal and other fees in connection with the
recording or filing of instruments and documents in public offices, payment or discharge of any Liens upon or in respect of such assets of the Borrower, other fees, costs and expenses in connection with protecting, maintaining or preserving such
assets of the Borrower and the Lender’s interest therein, whether through judicial proceedings or otherwise, or in defending or prosecuting any actions, suits or proceedings arising out of or related to such assets of the Borrower; and all such
amounts that are paid by the Lender shall, until reimbursed by the Borrower, constitute Obligations secured by such assets of the Borrower. 
 ARTICLE X 
 NEGATIVE COVENANTS 
 SECTION 10.01. Activities of the Borrower. (a) The Borrower shall not enter into any business either directly or through any Subsidiary except for businesses in which the Borrower is engaged on the date of
this Agreement. 
 (b) The Borrower shall not amend, modify or waive or terminate any provision of, or permit or agree to the
amendment, modification, waiver or termination of any provision of, any of the Loan Documents, License Agreements or the Acquisition Agreement without the prior written consent of the Lender (it being understood that the Lender shall be entitled to
withhold its consent if such amendment, modification or waiver is or would be adverse in any respect to the Lender, as determined by the Lender in its sole discretion). 
 SECTION 10.02. Merger; Sale of Assets. (a) The Borrower shall not merge or consolidate with or into any other Person. 
 (b) The Borrower shall not directly or indirectly sell, lease, license, transfer or otherwise dispose of all or any part of its assets,
except (i) for the sale of or licensing of rights to one or more of the Borrower’s or its Affiliates’ existing or future products and related assets to one or more third parties for fair value in an arm’s-length transaction in
the ordinary course of business; (ii) in connection with additional product development, collaboration or commercialization agreements (other than with respect to the Raptiva 

  

 27 

 
Rights-Related Intellectual Property or the Payment Rights-Related Intellectual Property) for research, development or commercialization activities with one
or more third parties for fair value in an arm’s-length transaction in the ordinary course of business; (iii) licenses of intellectual property rights of the Borrower in connection with services provided by the Borrower for fair value in
an arm’s-length transaction in the ordinary course of its business; (iv) sales of equipment not needed for the Borrower’s business to one or more third parties for fair value in an arm’s-length transaction; (v) sales of
equipment to one or more third parties for fair value in an arm’s-length transaction, the proceeds of which are used to purchase replacement or other assets useful in the Borrower’s business within twelve months of such sale and
(vi) other sales, leases, licenses, transfers or other dispositions in an aggregate amount not to exceed $1,000,000 during the term of the agreement. 
 SECTION 10.03. Liens. The Borrower shall not create or suffer to exist any Lien on or with respect to any of its assets, whether now owned or hereafter acquired, other than the following (collectively,
“Permitted Liens”): 
 (a) Liens created pursuant to this Agreement and the Security Agreement; 

(b) Liens existing on the date hereof set forth in Exhibit E to the extent and in the manner such Liens are in effect on the date
hereof; 
 (c) any Lien granted to collaboration or development partners of the Borrower or its Affiliates in connection with
funded research, development and commercialization activities (other than on or with respect to the Raptiva Rights, the Payment Rights, the Raptiva Rights-Related Intellectual Property or the Payment Rights-Related Intellectual Property);
provided, that any such Lien is limited to the Borrower’s interest in products developed in such collaboration; 
 (d) any Lien on any asset securing Indebtedness incurred or assumed for the purpose of financing all or any part of the cost of acquiring such asset; provided that such Lien attaches to such asset concurrently with or within 90 days
after the acquisition thereof; 
 (e) any Lien existing on any asset prior to the acquisition thereof by the Borrower and not
created in contemplation of such acquisition; 
 (f) any Lien created after the Closing Date in connection with capitalized
lease obligations, but only to the extent that such Lien encumbers property financed by such capital lease obligation and the principal component of such capitalized lease obligation is not increased; provided that capital lease obligations
secured by Liens pursuant to this clause (f) shall not exceed in the aggregate $2,000,000; 
 (g) Liens arising in the
ordinary course of its business which (i) do not secure Indebtedness and (ii) do not in the aggregate materially impair the operation of the business of the Borrower or impair the value of the Payment Rights and the Raptiva Rights;
provided that the assets secured by Liens pursuant to this clause (g) shall not exceed in the aggregate $2,000,000; 
  

 28 

 (h) easements, rights-of-way, zoning restrictions and other similar charges or
encumbrances in respect of real property not interfering with the ordinary conduct of the business of the Borrower; 
 (i) any
Lien arising out of the refinancing, extension, renewal or refunding of any Indebtedness secured by any Lien permitted by any of the foregoing clauses of this Section 10.03; provided that such Indebtedness is not increased and is not
secured by any additional assets; and 
 (j) Liens securing taxes, assessments, fees or other governmental charges or levies,
Liens securing the claims of materialmen, mechanics, carriers’ landlords, warehousemen and similar Persons, Liens in the ordinary course of business in connection with workmen’s compensation, unemployment insurance and other similar Laws,
Liens to secure surety, appeal and performance bonds and other similar obligations not incurred in connection with the borrowing of money, and attachment, judgment and other similar Liens arising in connection with court proceedings so long as the
enforcement of such Liens is effectively stayed and the claims secured thereby are being contested in good faith by appropriate proceedings. 
 SECTION 10.04. No Subsidiaries. The Borrower shall not form any Subsidiaries or conduct any business or hold any assets through any Subsidiary. 
 SECTION 10.05. Investment Company Act. The Borrower shall not be or become an investment company subject to registration under the Investment Company Act of 1940. 
 SECTION 10.06. Limitation on Additional Indebtedness. The Borrower shall not, directly or indirectly, incur or suffer to exist any Indebtedness;
provided that the Borrower may incur: 
 (a) Indebtedness under this Agreement; 
 (b) Indebtedness secured by Liens permitted under Section 10.03; or 
 (c) any other Indebtedness relating to a collaboration or development agreement of the type contemplated in Section 10.03(c), which
by its terms (or by the terms of any agreement governing such Indebtedness) is fully subordinated in right of payment. 
 SECTION 10.07.
Limitation on Transactions with Affiliates. The Borrower shall not, directly or indirectly, enter into any transaction or series of related transactions or participate in any arrangement (including any purchase, sale, lease or exchange of
assets or the rendering of any service) with, or for the benefit of, any Affiliate other than the Transaction Documents or in the ordinary course of business of the Borrower upon fair and reasonable terms no less favorable to the Borrower than it
would obtain in a comparable arm’s-length transaction with a non-Affiliate. 
 SECTION 10.08. Interest Coverage Ratio. As of the
second Interest Payment Date following the Closing Date and each subsequent Interest Payment Date, the Borrower shall 

  

 29 

 
not permit, for any period of two consecutive fiscal quarters, the Interest Coverage Ratio to be less than 3.0. 
 SECTION 10.09. ERISA. (a) Neither XOMA nor the Borrower shall maintain or contribute to, or agree to maintain or contribute to or otherwise
incur any liability with respect to, any employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV or Section 302 of ERISA or Section 412 of the Code or any similar plan under non-U.S. law (a
“Plan”). Neither XOMA nor the Borrower shall incur any liability under Title IV or Section 302 of ERISA or Section 412 of the Code or any similar non-U.S. law in respect of any Plan that is maintained by an ERISA
Affiliate. 
 (b) Neither XOMA, the Borrower nor any ERISA Affiliate shall engage in a non-exempt prohibited transaction under
Section 406 of ERISA, Section 4975 of the Code, or substantially similar provisions under foreign or U.S. federal, state or local laws, rules or regulations or in any transaction that would cause any obligation or action taken or to be
taken hereunder (or the exercise by the Lender of any of its rights under the Note, this Agreement or the Security Agreement) to be a non-exempt prohibited transaction under such provisions. 
 (c) Neither XOMA, the Borrower nor any ERISA Affiliate will incur any liability with respect to any obligation to provide benefits,
including death or medical benefits, with respect to any person beyond their retirement or other termination of service other than coverage mandated by law. 
 ARTICLE XI 
 EVENTS OF DEFAULT 
 SECTION 11.01. Events of Default. If one or more of the following events of default (each, an “Event of Default”) occurs and is
continuing, the Lender shall be entitled to the remedies set forth in Section 11.02: 
 (a) The Borrower fails to pay any
principal of the Loan when due, whether at the Maturity Date or otherwise. 
 (b) The Borrower fails to pay any interest on
the Loan or make payment of any other amounts payable under this Agreement within three Banking Days after the same becomes due and payable. 
 (c) Any representation or warranty of the Borrower in this Agreement or any other Transaction Document to which it is party or in any certificate, financial statement or other document delivered by the Borrower in
connection with this Agreement proves to have been incorrect, incomplete or misleading in any material respect at the time it was made or repeated. 
 (d) The Borrower fails to perform or observe any covenant or agreement contained in Section 9.01, Section 9.04, Section 9.11(b), Section 9.11(c), Section 9.12, Section 9.13 or Article X
of this Agreement or Section 4.08 or Section 4.12 of the Security Agreement. 
  

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 (e) The Borrower fails to perform or observe any other covenant or agreement contained in
this Agreement, the Note or the Security Agreement (other than those referred to in the preceding clauses of this Section 11.01) if such failure is not remedied on or before the thirtieth day after Notice thereof from the Lender. 
 (f) The Borrower (i) fails to pay any of its Indebtedness as and when that Indebtedness becomes payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise) or (ii) fails to perform or observe any covenant or agreement to be performed or observed by it contained in any other agreement or in any instrument evidencing any of its
Indebtedness and, as a result of such failure, any other party to that agreement or instrument is entitled to exercise the right to accelerate the maturity of any amount owing thereunder or any such amount is accelerated; provided,
however, that a failure to pay Indebtedness shall not constitute an Event of Default under this clause (f) if (x) the overdue amounts in the aggregate do not exceed $3,000,000 (or the equivalent in another currency or currencies),
(y) the obligation to pay the overdue amounts has not resulted from acceleration and (z) the failure is remedied on or before the thirtieth day after it occurs. 
 (g) XOMA Bermuda shall sell, assign, lease, license, transfer or otherwise dispose of the Payment Rights-Related Intellectual Property
with respect to the Payment Rights, the LUCENTIS License Agreement and/or the CIMZIA License Agreement or any XOMA Party takes any action which could reasonably be expected to impair the value of or Lender’s access to the security provided by
the foregoing. 
 (h) Any judgment, decree or order shall be rendered against the Borrower and either (i) enforcement
proceedings shall have been commenced upon such judgment, decree or order or (ii) such judgment, decree or order shall not have been vacated or discharged within thirty days from entry. 
 (i) Any XOMA Party or any Obligor (i) is dissolved or commences proceedings for dissolution, (ii) fails or is unable to pay its
debts generally as they become due, (iii) commences a voluntary case in bankruptcy or any other action or proceeding for any other relief under any law affecting creditors’ rights that is similar to a bankruptcy law or (iv) consents
by answer or otherwise to the commencement against it of an involuntary case in bankruptcy or any other such action or proceeding; or a court enters an order for relief or a decree in an involuntary case in bankruptcy or any other such action or
proceeding in respect of any such Person or any of the assets of any such Person if such order or decree is not dismissed or withdrawn on or before the sixtieth day after the entry thereof or if any such dismissal or withdrawal ceases to remain in
effect. 
 (j) Any of the Transaction Documents shall cease to be in full force and effect or its validity or enforceability
is disaffirmed or challenged in writing by any Person other than the Lender or the Security Agreement shall cease to give the Lender the rights purported to be created thereby (including a first priority perfected Lien on the assets of the
Borrower). 
  

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 (k) Any of a Borrower Change of Control, a XOMA Bermuda Change of Control or a XOMA
Change of Control occurs. 
 (l) (i) Any representation or warranty of the Borrower or XOMA Bermuda in the Acquisition
Agreement proves to have been incorrect, incomplete or misleading in any respect at the time it was made; (ii) the Borrower or XOMA Bermuda fails to perform or observe any covenant or agreement contained in the Acquisition Agreement, any
License Agreement or the Borrower Documents, as applicable, and such failure is not cured or waived within any applicable grace period or (iii) any Obligor fails to perform or observe any covenant or agreement contained in any License Agreement
and such failure is not cured or waived within any applicable grace period or asserts a Dispute with respect to the Payment Rights, the Raptiva Rights or the Collaboration Agreement. 
 (m) In connection with a challenge to the validity of the Payment Rights, the Raptiva Rights or any Payment Rights-Related Intellectual
Property or Raptiva Rights-Related Intellectual Property or any transaction contemplated under the License Agreements or the Acquisition Agreement, any judgment, decree or order is issued that (i) halts or suspends the payment by any Obligor or
XOMA Bermuda of any amount payable in respect of the Payment Rights or under the Collaboration Agreement, or (ii) otherwise determines that the Payment Rights or the Collaboration Agreement have not been duly authorized or validly issued or
that the Payment Rights or the Collaboration Agreement are not enforceable in accordance with the terms of the applicable License Agreement or the Acquisition Agreement, and such judgment, decree or order shall not have been vacated or discharged
within 10 days from entry. 
 (n) Any of the revenue milestones set forth in Exhibit F shall not have been achieved by
the date indicated. 
 (o) Any provision of Article XII shall for any reason cease to be valid and binding or enforceable
against XOMA or XOMA shall so state in writing. 
 SECTION 11.02. Default Remedies. If any Event of Default shall occur, the Lender
may, by Notice to the Borrower, (a) exercise all rights and remedies available to the Lender hereunder and under the Security Agreement, including enforcement of the security interests created thereby, (b) declare the Loan, all interest
thereon and all other amounts payable hereunder and under the Note by the Borrower to be immediately due and payable, whereupon all such amounts shall become immediately due and payable, all without diligence, presentment, demand of payment, protest
or further notice of any kind, which are expressly waived by the Borrower and (c) declare the obligations of the Lender hereunder to be terminated, whereupon such obligations shall terminate, provided, however, that if any event
of any kind referred to in Section 11.01(i) occurs, the obligations of the Lender hereunder shall immediately terminate, all amounts payable hereunder by the Borrower shall become immediately due and payable and the Lender shall be entitled to
exercise rights and remedies under the Security Agreement without diligence, presentment, demand of payment, protest or notice of any kind, all of which are hereby expressly waived by the Borrower. Each Notice delivered pursuant to this
Section 11.02 shall be effective when sent. 
  

 32 

 SECTION 11.03. Right of Set-off. If any amount payable hereunder is not paid as and when due, the
Borrower irrevocably authorizes the Lender and each Affiliate of the Lender (i) to proceed, to the fullest extent permitted by applicable Law, without prior notice, by right of set-off, bankers’ lien, counterclaim or otherwise, against any
assets of the Borrower in any currency that may at any time be in the possession of the Lender or such Affiliate, to the full extent of all amounts payable to the Lender hereunder or (ii) to charge to the Payment Account the full extent of all
amounts payable by the Borrower to the Lender hereunder; provided, however, that the Lender shall notify the Borrower of the exercise of such right promptly following such exercise. 
 SECTION 11.04. Rights Not Exclusive. The rights provided for herein are cumulative and are not exclusive of any other rights, powers, privileges
or remedies provided by Law. 
 ARTICLE XII  
 GUARANTEE 
 SECTION 12.01. Guarantee.
XOMA hereby absolutely, unconditionally and irrevocably guarantees, as a guarantee of payment and not of collection, the punctual payment when due, whether at scheduled maturity or on any date of a required prepayment or by acceleration, demand or
otherwise, of all obligations of the Borrower now or hereafter existing under or in respect of this Agreement and the Loan Documents (including any extensions, modifications, substitutions, amendments or renewals of any or all of the foregoing
obligations), whether direct or indirect, absolute or contingent, and whether for principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such obligations being the “Guaranteed
Obligations”), and agrees to pay any and all expenses (including fees and expenses of counsel) incurred by the Lender in enforcing any rights under this Article XII. Without limiting the, generality of the foregoing, XOMA’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by the
Borrower to the Lender under or in respect of this Agreement or any Loan Document but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Borrower.

 SECTION 12.02. Guarantee Absolute. (a) XOMA guarantees that the Guaranteed Obligations will be paid strictly in accordance
with the terms of this Agreement and the Loan Documents regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Lender with respect thereto. The obligations of XOMA
under or in respect of this Article XII are independent of the Guaranteed Obligations or any other obligations of the Borrower under or in respect of this Agreement and any Loan Documents and a separate action or actions may be brought and
prosecuted against XOMA to enforce this Article XII, irrespective of whether any action is brought against the Borrower or whether the Borrower is joined in any such action or actions. The liability of XOMA under this Article XII shall be
irrevocable, absolute and unconditional irrespective of, and XOMA hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any or all of the following: 
  

 33 

 (i) any lack of validity or enforceability of this Agreement (other than this Article
XII), the Note or any agreement or instrument relating thereto; 
 (ii) any change in the time, manner or place of payment of,
or in any other term of, all or any of the Guaranteed Obligations or any other obligations of the Borrower under or in respect of this Agreement or the Loan Documents or any other amendment or waiver of or any consent to departure from this
Agreement or the Loan Documents, including any increase in the Guaranteed Obligations resulting from the extension of additional credit to the Borrower or otherwise; 
 (iii) any taking, exchange, release or non-perfection of any Collateral (as defined under the Security Agreement), or any taking, release
or amendment or waiver of, or consent to departure from, any other guaranty, for all or any of the Guaranteed Obligations; 
 (iv) any manner of application of Collateral, or proceeds thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any Collateral for all or any of the Guaranteed Obligations or any other
obligations of the Borrower under this Agreement or the Loan Documents or any other assets of the Borrower; 
 (v) any change,
restructuring or termination of the corporate structure or existence of the Borrower or any of its Subsidiaries; or 
 (vi)
any other circumstance (including any statute of limitations) or any existence of or reliance on any representation by the Lender that might otherwise constitute a defense available to, or a discharge of, the Borrower or any other guarantor or
surety. 
 (b) This Article XII shall continue to be effective or be reinstated, as the case may be, if at any time any
payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by the Lender or any other Person upon the insolvency, bankruptcy or reorganization of the Borrower or otherwise, all as though such payment had not been made.

 SECTION 12.03. Waivers and Acknowledgments. (a) XOMA unconditionally and irrevocably waives promptness, diligence, notice of
acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this Article XII and any requirement that the Lender
protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action against the Borrower or any other Person or any collateral. 
 (b) XOMA hereby unconditionally and irrevocably waives any right to revoke this Article XII and acknowledges that the guaranty under this
Article XII is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. 
  

 34 

 (c) XOMA hereby unconditionally and irrevocably waives (i) any defense arising by
reason of any claim or defense based upon an election of remedies by the Lender that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of XOMA
or other rights of XOMA to proceed against the Borrower, any other guarantor or any other Person or any Collateral and (ii) any defense based on any right of set-off or counterclaim against or in respect of the obligations of XOMA hereunder.

 (d) XOMA hereby unconditionally and irrevocably waives any duty on the part of the Lender to disclose to XOMA any matter,
fact or thing relating to the business, financial condition, operations, performance, properties or prospects of the Borrower now or hereafter known by the Lender. 
 (e) XOMA acknowledges that it will receive substantial direct and indirect benefits from the financing arrangements contemplated by this
Agreement and the Loan Documents and that the waivers set forth in Section 12.02 and this Section 12.03 are knowingly made in contemplation of such benefits. 
 SECTION 12.04. Subrogation. XOMA hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against the Borrower or any other insider guarantor that arise
from the existence, payment, performance or enforcement of XOMA’s obligations under or in respect of this Article XII, including any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate
in any claim or remedy of the Lender against the Borrower or any other insider guarantor or any collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including the right to take or receive
from the Borrower or any other insider guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right, unless and until all of the Guaranteed
Obligations and all other amounts payable under this Article XII shall have been paid in full in cash. If any amount shall be paid to XOMA in violation of the immediately preceding sentence at any time prior to the payment in full in cash of the
Guaranteed Obligations and all other amounts payable under this Article XII, such amount shall be received and held in trust for the benefit of the Lender, shall be segregated from other property and funds of XOMA and shall forthwith be paid or
delivered to the Lender in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Article XII, whether matured or unmatured, in
accordance with the terms of this Agreement, or to be held as collateral for any Guaranteed Obligations or other amounts payable under this Article XII thereafter arising. 
 SECTION 12.05. Continuing Guarantee. The guarantee under this Article XII is a continuing guarantee and shall (a) remain in full force and
effect until the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Article XII, (b) be binding upon XOMA, its successors and assigns and (c) inure to the benefit of and be enforceable by the
Lender and its successors, transferees and assigns. XOMA shall not have the right to assign its obligations hereunder without the prior written consent of the Lender and any purported assignment in violation of this Section 12.05 shall be null
and void. 
  

 35 

 ARTICLE XIII 
 INDEMNIFICATION 
 SECTION 13.01. Funding Losses. If the Borrower makes any payment of
principal with respect to the Loan on any day other than the last day of an Interest Period applicable thereto, or if the Borrower fails to borrow any amount on the Closing Date after Notice of Borrowing has been given to the Lender in accordance
with Section 2.02, the Borrower shall reimburse the Lender within three Banking Days after demand for any resulting loss or expense incurred by the Lender including any loss incurred in obtaining, liquidating or redeploying deposits from third
parties; provided that the Lender shall have delivered to the Borrower a certificate as to the amount of such loss or expense. 
 SECTION 13.02. Increased Costs. Except as to Taxes (it being understood that the Borrower’s liability for Taxes will be exclusively determined under Article V), the Borrower shall reimburse the Lender on demand for all increases
in costs incurred by the Lender and all reductions in amounts received or receivable by the Lender or in the rate of return on the Lender’s capital, as reasonably determined by the Lender, that are attributable to the Loan or the performance by
the Lender of its obligations under this Agreement and that occur by reason of the promulgation after the date hereof of any Law or treaty or any change after the date hereof in any Law or treaty or in the interpretation thereof or by reason of
compliance by the Lender with any direction, requirement or request (whether or not having the force of Law) of any Governmental Authority, including any such cost or reduction resulting from the imposition or amendment of any capital adequacy
requirement or any reserve, special deposit or similar requirement against assets of, liabilities of, deposits with or for the account of, or loans by, the Lender; provided that the Lender shall not be entitled to be reimbursed for such
increased costs or reductions in amount receivable or the rate of return incurred more than 180 days prior to the date on which it gives notice to the Borrower of such increased costs or reduction in amount receivable or rate of return. 

SECTION 13.03. Other Losses. (a) The Borrower agrees to defend (subject to Indemnitees’ selection of counsel), indemnify, pay and
hold harmless, the Lender and its Affiliates and their respective officers, partners, directors, trustees, employees and agents (each, an “Indemnitee”), from and against any and all Indemnified Liabilities, in all cases, whether or
not caused by or arising, in whole or in part, out of the comparative, contributory or sole negligence of such Indemnitee; provided, the Borrower shall not have any obligation to any Indemnitee hereunder with respect to any Indemnified
Liabilities to the extent such Indemnified Liabilities arise from the gross negligence or willful misconduct of such Indemnitee. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this Section 13.03 may
be unenforceable in whole or in part because they are violative of any law or public policy, the Borrower shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all
Indemnified Liabilities incurred by Indemnitees or any of them. 
 (b) To the extent permitted by applicable law, no Party
shall assert, and each Party hereby waives, any claim against each other Party and such Party’s Affiliates, directors, employees, attorneys or agents, on any theory of liability, for special, indirect, consequential or punitive damages (as
opposed to direct or actual damages) (whether or 

  

 36 

 
not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or
in any way related to, this Agreement or any Loan Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, the Loan or the use of the proceeds thereof
or any act or omission or event occurring in connection therewith, and each Party hereby waives, releases and agrees not to sue upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its
favor. 
 SECTION 13.04. Assumption of Defense; Settlements. If the Lender is entitled to indemnification under this Article XIII with
respect to any action or proceeding brought by a third party that is also brought against the Borrower, the Borrower shall be entitled to assume the defense of any such action or proceeding with counsel reasonably satisfactory to the Lender. Upon
assumption by the Borrower of the defense of any such action or proceeding, the Borrower shall have the right to participate in such action or proceeding and to retain its own counsel but the Borrower shall not be liable for any legal expenses of
other counsel subsequently incurred by the Lender in connection with the defense thereof unless (i) the Borrower has otherwise agreed to pay such fees and expenses, (ii) the Borrower shall have failed to employ counsel reasonably
satisfactory to the Lender in a timely manner or (iii) the Lender shall have been advised by counsel that there are actual or potential conflicting interests between the Borrower and the Lender, including situations in which there are one or
more legal defenses available to the Lender that are different from or additional to those available to the Borrower; provided, however, that the Borrower shall not, in connection with any one such action or proceeding or separate but
substantially similar actions or proceedings arising out of the same general allegations, be liable for the fees and expenses of more than one separate firm of attorneys at any time for the Lender, except to the extent that local counsel, in
addition to its regular counsel, is required in order to effectively defend against such action or proceeding. The Borrower shall not consent to the terms of any compromise or settlement of any action defended by the Borrower in accordance with the
foregoing without the prior written consent of the Lender unless such compromise or settlement (x) includes an unconditional release of the Lender from all liability arising out of such action and (y) does not include a statement as to or
an admission of fault, culpability or a failure to act, by or on behalf of the Lender. The Borrower shall not be required to indemnify the Lender for any amount paid or payable by the Lender in the settlement of any action, proceeding or
investigation without the written consent of the Borrower, which consent shall not be unreasonably withheld. 
 ARTICLE XIV 
 MISCELLANEOUS 
 SECTION 14.01.
Assignments. (a) The Borrower shall not be permitted to assign this Agreement without the prior written consent of the Lender and any purported assignment in violation of this Section 14.01(a) shall be null and void. 
 (b) The Lender may at any time assign all its rights and obligations hereunder in whole or in part to a financial institution,
institutional investor or commercial paper conduit (each an “Assignee”); provided that, at any time, there shall be no more than three Lenders. 
  

 37 

 (c) The parties to each assignment shall execute and deliver to the Borrower a written
instrument of assignment in the form set forth in Exhibit G, containing the agreement of the assignee to be bound by the terms of this Agreement (an “Assignment and Acceptance”). Upon the effectiveness of a permitted
assignment hereunder, (i) each reference in this Agreement to “Lender” shall be deemed to be a reference to the assignor and the assignee to the extent of their respective interests, (ii) such assignee shall be a Lender party to
this Agreement and shall have all the rights and obligations of a Lender and (iii) the assignor shall be released from its obligations hereunder to a corresponding extent of the assignment, and no further consent or action by any party shall be
required. 
 (d) The Borrower shall, from time to time at the request of the Lender, execute and deliver any documents that
are necessary to give full force and effect to an assignment permitted hereunder, including a new Note in exchange for the Note held by the Lender. 
 SECTION 14.02. Participations. The Lender may at any time grant to one or more financial institutions, institutional investors and/or commercial paper conduits (each a “Participant”) participating interests in its
Loan. In the event of any such grant by the Lender of a participating interest to a Participant, whether or not upon notice to the Borrower, such Lender shall remain responsible for the performance of its obligations hereunder, and the Borrower
shall continue to deal solely and directly with the Lender in connection with the Lender’s rights and obligations under this Agreement. Any agreement pursuant to which the Lender may grant such a participating interest shall provide that the
Lender shall retain the sole right and responsibility to enforce the obligations of the Borrower hereunder including the right to approve any amendment, modification or waiver of any provision of this Agreement. The Borrower agrees that each
Participant shall, to the extent provided in its participation agreement, be entitled to the benefits of Article V and Article XII with respect to its participating interest, as though it were a Lender. 
 SECTION 14.03. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns. 
 SECTION 14.04. Notices. All notices, consents, approvals, reports, designations, requests,
waivers, elections and other communications (collectively, “Notices”) authorized or required to be given pursuant to this Agreement shall be given in writing and either personally delivered to the Party to whom it is given or
delivered by an established delivery service by which receipts are given or mailed by registered or certified mail, postage prepaid, or sent by facsimile or electronic mail with a copy sent on the following Banking Day by one of the other methods of
giving notice described herein, addressed to the Party at its address listed below: 
 (a) If to the Borrower: 
 XOMA (US) LLC 
 2910 Seventh Street

 Berkeley, California 94710 
 Attn: Legal Department 
  

 38 

 with a copy, which shall not constitute notice, to: 
 XOMA (US) LLC 
 2910 Seventh Street

 Berkeley, California 94710 
 Attn: Finance Department 
 and a copy, which shall not constitute notice, to: 
 Cahill Gordon & Reindel LLP 
 80
Pine Street 
 New York, New York 10005 
 Attn: Geoffrey Liebmann 
 (b) If to the Lender: 
 Goldman Sachs Specialty Lending Holdings, Inc. 
 85 Broad Street 
 New York, New York 10004 
 Attention: James David 
 with a copy to: 
 Goldman Sachs Specialty Lending Holdings, Inc. 
 600 E. Las Colinas Boulevard 
 Suite 400 
 Irving, Texas 75039 
 Attention: Kyle Volluz 
 (c) If to XOMA: 
 XOMA Ltd.

 2910 Seventh Street 
 Berkeley, California 94710 
 Attn: Legal Department 
 with a copy, which shall not constitute notice, to: 
 XOMA Ltd. 
 2910 Seventh Street 
 Berkeley, California
94710 
 Attn: Finance Department 
 and a copy, which shall not constitute notice, to: 
 Cahill Gordon & Reindel LLP 
  

 39 

 80 Pine Street 
 New York, New York 10005 
 Attn: Geoffrey Liebmann 
 Any Party may change its address for the receipt of Notices at any time by giving Notice thereof to the other Parties. Except as otherwise provided
herein, any Notice authorized or required to be given by this Agreement shall be effective when received. 
 SECTION 14.05. Entire
Agreement. This Agreement and the other Transaction Documents contain the entire agreement between the Parties relating to the subject matter hereof and supersede all oral statements and prior writings with respect thereto. 
 SECTION 14.06. Modification. No change or modification of this Agreement shall be of any force unless such change or modification is in writing
and has been signed by the Lender and the Borrower. 
 SECTION 14.07. No Delay; Waivers; etc. No delay on the part of the Lender in
exercising any power or right hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any power or right hereunder preclude other or further exercise thereof or the exercise of any other power or right. The Lender
shall not be deemed to have waived any rights hereunder unless such waiver shall be in writing and signed by the Lender. 
 SECTION 14.08.
Severability. If any provision of this Agreement shall be held to be invalid, illegal or unenforceable, then, to the fullest extent permitted by law, the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired thereby. 
 SECTION 14.09. Determinations. Each determination or calculation by the Lender hereunder shall, in
the absence of manifest error, be conclusive and binding on the Parties. 
 SECTION 14.10. Replacement of Note. Upon the loss, theft,
destruction, or mutilation of the Note and (a) in the case of loss, theft or destruction, upon receipt by the Borrower of indemnity or security reasonably satisfactory to it (except that if the holder of the Note is the Lender or any other
financial institution of recognized responsibility, the holder’s own agreement of indemnity shall be deemed to be satisfactory) or (b) in the case of mutilation, upon surrender to the Borrower of the mutilated Note, the Borrower shall
execute and deliver in lieu thereof a new Note, dated the Closing Date, in the same principal amount. 
 SECTION 14.11. Governing Law.
THIS AGREEMENT AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAWS PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION).

 SECTION 14.12. Jurisdiction. Each of the Borrower and XOMA irrevocably submits to the jurisdiction of the courts of the State of
New York and of the United States sitting in the State of New York, and of the courts of its own corporate domicile with respect to actions 

  

 40 

 
or proceedings brought against it as a defendant, for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions
contemplated hereby (a “Proceeding”). Each of the Borrower and XOMA irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any Proceeding and any claim
that any Proceeding has been brought in an inconvenient forum. Any process or summons for purposes of any Proceeding may be served on the Borrower or XOMA by mailing a copy thereof by registered mail, or a form of mail substantially equivalent
thereto, addressed to it at its address as provided for Notices hereunder. 
 SECTION 14.13. Waiver of Jury Trial. EACH OF THE
BORROWER AND XOMA HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 SECTION 14.14. Waiver of Immunity. To the extent that the Borrower or XOMA has or hereafter may be entitled to claim or may acquire, for itself or
any of its assets, any immunity from suit, jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, or otherwise) with respect to itself or any of its
property, each of the Borrower and XOMA hereby irrevocably waives such immunity in respect of its obligations hereunder and under the Note to the fullest extent permitted by law. 
 SECTION 14.15. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of
which shall constitute one and the same instrument. 
 SECTION 14.16. Limitation on Rights of Others. Except for the Indemnitees
referred to in Section 13.03, no Person other than a Party shall have any legal or equitable right, remedy or claim under or in respect of this Agreement. 
 SECTION 14.17. No Partnership. Nothing in this Agreement or any other Transaction Document shall be read to create any agency, partnership or joint venture of the Lender (or any of its Affiliates) and the
Borrower (or any of its Affiliates). 
 SECTION 14.18. Survival. The obligations of the Borrower contained in Sections 4.05, 4.06, Article V
and Article XIII and of XOMA contained in Article XII shall survive the repayment of the Loan and the cancellation of the Note and the termination of the other obligations of the Borrower hereunder. 
 SECTION 14.19. Patriot Act Notification. The Lender hereby notifies the Borrower that, consistent with the USA Patriot Act, Public Law
No. 107-56 (the “Patriot Act”), regulations promulgated thereunder and under other applicable Law, the Lender’s procedures and customer due diligence standards require it to obtain, verify and record information that
identifies the Borrower, including among other things name, address, information regarding persons with authority or control over the Borrower, and other information regarding the Borrower, its operations and transactions with the Lender. The
Borrower agrees to provide such information and take such actions as are reasonably requested by the Lender in order to assist the Lender in maintaining compliance with its procedures, the Patriot Act and any other applicable Laws. 
  

 41 

 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the day and year first above
written. 
  

			
	GOLDMAN SACHS SPECIALTY
		 	LENDING HOLDINGS, INC.,
		 	as Lender
		
	By:	 	/s/ ALAN WAXMAN
		 	Name: Alan S. Waxman
		 	Title: Vice President
	
	XOMA (US) LLC,
	as Borrower
		
	By:	 	/s/ CHRISTOPHER J. MARGOLIN
		 	Name: Christopher J. Margolin
		 	 Title: Vice President, General Counsel
 and Secretary

	
	XOMA LTD.,
	as Guarantor
		
	By:	 	/s/ CHRISTOPHER J. MARGOLIN
		 	Name: Christopher J. Margolin
		 	 Title: Vice President, General Counsel
 and Secretary

  

 42 

 EXHIBIT A 
 Form of Promissory Note 
  

			
	US$35,000,000	  	New York, New York November 9, 2006

 FOR VALUE RECEIVED, XOMA (US) LLC, a Delaware limited liability company (the
“Borrower”), hereby promises to pay to the order of Goldman Sachs Specialty Lending Holdings, Inc. or its registered assigns (the “Lender”), in lawful money of the United States of America, in same day funds on the
Maturity Date the principal sum of thirty-five million dollars (US$35,000,000). 
 The Borrower also promises to pay interest on the unpaid
principal amount hereof in like money, from the date hereof until such unpaid principal is paid in full, at the rates, at the times and in the manner provided in the Loan Agreement referred to below. 
 This Note is the Note referred to in the Loan Agreement, dated as of November 9, 2006, between the Borrower and the Lender (as amended from time to
time, the “Loan Agreement”) and is entitled to the benefits thereof and of the other Loan Documents. This Note is secured as provided in the Loan Documents. This Note is subject to optional prepayment, in whole or in part, prior to
the Maturity Date as provided in the Loan Agreement. 
 If an Event of Default shall occur and be continuing, the principal of and accrued
interest on this Note may become or be declared to be due and payable in the manner and with the effect provided in the Loan Agreement. 
 The Borrower hereby waives presentment, demand, protest or notice of any kind in connection with this Note. 
 Capitalized terms
used but not defined herein shall have the meanings given to them in the Loan Agreement. 

 THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK
(WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAWS PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION). 
  

			
	XOMA (US) LLC
		
	By:	 	/s/ J. DAVID BOYLE II
		 	Name: J. David Boyle II
		 	 Title: Vice President, Finance and
 Chief Financial Officer

 EXHIBIT B 
 Form of Notice of Borrowing 
 [*] 
 EXHIBIT C 
 [Form of Security
Agreement] 
 EXHIBIT D-1 
 Form of Certificate of Borrower 
 [*] 
 EXHIBIT D-2 
 Form of
Certificate of XOMA 
 [*] 
 EXHIBIT D-3 
 Form of Certificate of XOMA Bermuda 
 [*] 
 EXHIBIT E

 Existing Liens and Related Indebtedness 
 [*] 

 EXHIBIT F 
 Revenue Milestones 
 [*] 

 EXHIBIT G 
 Form of Assignment and Acceptance 
 [*] 

 EXHIBIT H-1 
 [*] 

 EXHIBIT H-2 
 [*] 

 EXHIBIT J 
 XOMA BCE/HE Intellectual Property 
 XOMA Patent Rights – Bacterial Expression

 A. Title: Modular Assembly of Antibody Genes, Antibodies Prepared Thereby and Use 
 Based on PCT/US88/02514, which corresponds to U.S. Application No. 07/077,528, which is a continuation-in-part PCT/US86/02269
(abandoned), which is a continuation-in-part of U.S. Application No. 06/793,980 (abandoned). 
  

					
	 COUNTRY
	  	APPLICATION NO.	  	PATENT NO.
	 Australia
	  	23244/88	  	632,462
	 Canada
	  	572,398	  	1,341,235
	 Denmark
	  	192/90	  	174824
	 Denmark
	  	200301155	  	PR 175654 B1
	 Denmark
	  	200301156	  	PR 175581 B1
	 Europe
	  	EP 88907510.7	  	EP 0371998
	 Austria
	  	EP 88907510.7	  	EP 0371998
	 Belgium
	  	EP 88907510.7	  	EP 0371998
	 France
	  	EP 88907510.7	  	EP 0371998
	 Germany
	  	EP 88907510.7	  	P 3888186.1
	 Italy
	  	EP 88907510.7	  	EP 0371998
	 Luxembourg
	  	EP 88907510.7	  	EP 0371998
	 Netherlands
	  	EP 88907510.7	  	EP 0371998
	 Sweden
	  	EP 88907510.7	  	EP 0371998
	 Switzerland / Liechtenstein
	  	EP 88907510.7	  	EP 0371998
	 United Kingdom
	  	EP 88907510.7	  	EP 0371998
	 Europe
	  	EP 93100041.8	  	EP 0550400
	 Austria
	  	EP 93100041.8	  	EP 0550400
	 Belgium
	  	EP 93100041.8	  	EP 0550400
	 France
	  	EP 93100041.8	  	EP 0550400
	 Germany
	  	EP 93100041.8	  	P 3855421.6
	 Italy
	  	EP 93100041.8	  	EP 0550400
	 Luxembourg
	  	EP 93100041.8	  	EP 0550400
	 Netherlands
	  	EP 93100041.8	  	EP 0550400
	 Sweden
	  	EP 93100041.8	  	EP 0550400
	 Switzerland/ Liechtenstein
	  	EP 93100041.8	  	EP 0550400
	 United Kingdom
	  	EP 93100041.8	  	EP 0550400
	 Europe
	  	EP 95119798.7	  	EP 0731167
	 Austria
	  	EP 95119798.7	  	EP 0731167
	 Belgium
	  	EP 95119798.7	  	EP 0731167
	 France
	  	EP 95119798.7	  	EP 0731167
	 Germany
	  	EP 95119798.7	  	P 3856440.12
	 Italy
	  	EP 95119798.7	  	EP 0731167

					
	 Luxembourg
	  	EP 95119798.7	  	EP 0731167
	 Netherlands
	  	EP 95119798.7	  	EP 0731167
	 Sweden
	  	EP 95119798.7	  	EP 0731167
	 Switzerland/Liechtenstein
	  	EP 95119798.7	  	EP 0731167
	 United Kingdom
	  	EP 95119798.7	  	EP 0731167
	 Japan
	  	506481/88	  	2991720

 Based on U.S. Application No. 07/501,092 filed March 29, 1990, which is
a continuation-in-part of U.S. Application No. 07/077,528 (Modular Assembly of Antibody Genes, Antibodies Prepared Thereby and Use; Robinson, Liu, Horwitz, Wall, Better) and of U.S. Application No. 07/142,039 (Novel Plasmid Vector with
Pectate Lyase Signal Sequence; Lei, Wilcox). 
  

					
	 COUNTRY
	  	APPLICATION NO.	  	PATENT NO.
	 United States
	  	08/235,225	  	5,618,920
	 United States
	  	08/299,085	  	5,595,898
	 United States
	  	08/472,691	  	6,204,023
	 United States
	  	08/467,140	  	5,698,435
	 United States
	  	08/450,731	  	5,693,493
	 United States
	  	08/466,203	  	5,698,417
	 United States
	  	11/582,563	  	Pending

 B. Title: Novel Plasmid Vector with Pectate Lyase Signal Sequence (PelB) 
  

	Inventors:	Lei, Wilcox 

 Based on U.S.
Application No. 07/142,039 filed January 11, 1988 and PCT/US89/00077. 
  

					
	 COUNTRY
	  	APPLICATION NO.	  	PATENT NO.
	 Australia
	  	29377/89	  	627443
	 Canada
	  	587,885	  	1,338,807
	 Europe
	  	EP 89901763.6	  	EP 0396612
	 Austria
	  	EP 89901763.6	  	EP 0396612
	 Belgium
	  	EP 89901763.6	  	EP 0396612
	 France
	  	EP 89901763.6	  	EP 0396612
	 Germany
	  	EP 89901763.6	  	689 26 882 T2
	 Italy
	  	EP 89901763.6	  	EP 0396612
	 Luxembourg
	  	EP 89901763.6	  	EP 0396612
	 Netherlands
	  	EP 89901763.6	  	EP 0396612
	 Sweden
	  	EP 89901763.6	  	EP 0396612
	 Switzerland/Liechtenstein
	  	EP 89901763.6	  	EP 0396612
	 United Kingdom
	  	EP 89901763.6	  	EP 0396612
	 Japan
	  	501661/89	  	2980626
	 United States
	  	08/472,696	  	5,846,818
	 United States
	  	08/357,234	  	5,576,195

 XOMA Patent Rights – Human EngineeringTM 
  

	A.	Title: Methods and Materials for Preparation of Modified Antibody Variable Domains and Therapeutic Uses Thereof 

 Inventors: Studnicka, Little, Fishwild, Kohn 
 Based on PCT/US92/10906 [WO 93/11794 filed 12/14/92], which is a continuation-in-part of U.S. Serial No. 07/808,464 filed December 13, 1991 (abandoned). 
  

					
	 COUNTRY
	  	SERIAL NO.	  	PATENT NO.
	 United States
	  	08/107,669	  	5,766,886
	 United States
	  	10/340,189	  	Published 2003/0229207
	 United States
	  	11/133,775	  	Published 2005/0239141
	 United States
	  	08/082,842	  	5,869,619
	 United States
	  	08/472,788	  	5,770,196
	 United States
 Canada
	  	08/477,531
2,103,887	  	5,821,123
2,103,887
	 Canada
	  	2,507,749 DIV	  	Pending
	 Europe
	  	EP 93901238.1	  	EP 0571613
	 Belgium
	  	EP 93901238.1	  	EP 0571613
	 France
	  	EP 93901238.1	  	EP 0571613
	 Germany
	  	EP 93901238.1	  	DE 69233204T
	 Ireland
	  	EP 93901238.1	  	EP 0571613
	 Italy
	  	EP 93901238.1	  	EP 0571613
	 Netherlands
	  	EP 93901238.1	  	EP 0571613
	 Spain
	  	EP 93901238.1	  	ES 2202310T
	 Switzerland/Liechtenstein
	  	EP 93901238.1	  	EP 0571613
	 United Kingdom
	  	EP 93901238.1	  	EP 0571613
	 Japan
	  	5-511171	  	Published 6-506362
	 Japan
	  	2005-6625	  	Published 2005-160485Standard Office Building Lease

 EXHIBIT 10.6 
 LEASE 
 THIS INDENTURE OF LEASE, entered into this 1 day of May, 2006, by and between Clearwater Retail Partners,
LLC hereinafter referred to as “Landlord” and First State Bank, hereinafter referred to as “Tenant”. 
 WITNESSETH THAT: 
 In consideration of the terms and conditions hereof, Landlord hereby leases to Tenant, and Tenant hereby takes
from Landlord, the Premises, as defined in section 1.1 (b). 
 ARTICLE I 
 DEFINITIONS AND ENUMERATION OF EXHIBITS 
 1.1 In addition to other terms which
are elsewhere defined in this lease, the following terms when used in this lease shall have the meanings set forth in this section. 
 (a)
SHOPPING CENTER: The real estate depicted or described on Exhibit “A,” hereto attached and such contiguous real estate as Landlord may from time to time designate in writing as being included in Shopping Center. Landlord reserves the right
to reasonably change the number and location of buildings, building dimensions, and the Common Areas, provided that such change shall not cause a change in the size, location, orientation or visibility of the Premises or the Shopping Center, reduce
or impede access to the Premises or the Shopping Center, reduce the proximity of the Premises to the parking facilities or the impact the convenience of the parking facilities to the Premises, otherwise adversely impact the Premises or Tenant’s
“presence” in the Shopping Center or materially adversely impact the site plan attached hereto as Exhibit “B”, and further provided that Landlord shall deliver at least thirty (30) days written notice to Tenant before
commencing such change. 
 (b) THE PREMISES: That portion of the Shopping Center, units 2, 3, 4, and 5 which are outlined on the floor plan,
or plans, marked Exhibit “B,” hereto attached along with all appurtenant rights to the Common Areas at Belleair Commons, US Highway 19, Clearwater, FL. The Premises are deemed to contain approximately 4,576 square feet of Gross Leased
Area, but reserving and excepting to Landlord the reasonable use of the roof and exterior walls (other than store fronts) and the reasonable right to install, maintain, use, repair, and replace pipes, ducts, conduits, wires, and appurtenant
fixtures, leading through the Premises in locations above the ceiling or below the floor and which will not materially interfere with Tenant’s use thereof and provided that Landlord shall deliver at least thirty (30) days written notice to
Tenant before commencing such installation, maintenance, use, repair or replacement. Any rights granted to Landlord in the preceding sentence are expressly subject to Tenant’s security procedures and policies. 
 (c) READY FOR OCCUPANCY: When Landlord’s Work on the Premises (and Tenants’ work if such work is to be preformed by Landlord or Landlord’s
Contractor) as described in Exhibit “C” hereto attached, as well as the construction of the Shopping Center and Common Areas has been substantially completed (except for finishing operations, the non-completion of which will not affect the
performance of Tenant’s Work, or Tenant’s use of the Premises as a Bank with drive in tellers or items necessarily awaiting performance of Tenant’s Work) as certified in writing by Landlord’s contractor and the issuance of a
certificate of occupancy for the Premises. 
 (d) RENTAL COMMENCEMENT DATE: The earlier of five (5) days following written notice from
Landlord to Tenant that the Premises is Ready for Occupancy or upon Tenant’s opening for business, provided that in no event shall the Rental Commencement Date occur earlier than January 2, 2007. 
 (e) LEASE TERM OR TERM: The period of time commencing with the date of this lease and terminating Twenty (20) years after the Rental Commencement
Date, unless such terminating date is other than the last day of a calendar month, in which event this lease shall terminate on the last day of the calendar month in which such date falls. 
 (f) SCHEDULED COMPLETION DATE: January 2, 2007 
 (g) MINIMUM GUARANTEED RENTAL: $ 13,346.66, plus applicable sales tax, per month. 
 (h) PERCENTAGE RENTAL RATE: N/A

 (i) ADVANCE DEPOSIT: N/A 
 (j) SECURITY DEPOSIT: N/A 
 (k) TENANT’S GROSS SALES: Defined in Section 3.4. 
 (1) TENANT’S INITIAL TRADE NAME: First State Bank (Tenant may change its trade name in connection with a change in the trade name utilized by a
majority of Tenant’s branch locations within ten (10) miles of the Leased Premises). 
 (m) TENANT’S WORK: those items set
forth on Exhibit “C” to be performed by Tenant. 
 (n) LANDLORD’S WORK: those items set forth in Exhibit “C” to
be performed by Landlord. 
 (o) LANDLORD’S MAILING ADDRESS: 630 Chestnut Street, Clearwater, Florida 33756, or such other address as
may from time to time be designated by Landlord in a written notice to Tenant. 
 (p) TENANT’S MAILING ADDRESS: 22 S. Links Ave., Suite
100, Sarasota, FL 34236, Attn: Legal Dept. or such other address as may from time to time be designated by Tenant in a written notice to Landlord. 
 (q) USE OF PREMISES: The operation of a full service commercial banking facility, including the installation and operation of automated teller machines and/or interactive remote tellers (collectively, “ATMs”) and related

  

 1 
 Please
initial: 
 Landlord:              Tenant:
             

 
equipment to provide the public with twenty-four (24) hour per day automated banking and financial services and other related financial services which
Tenant may from time to time be authorized by law to provide. 
 (r) LANDLORD’S CONTRIBUTION TO TENANT’S WORK: See Special
Stipulations on “Exhibit G”. 
 (s) COMMON AREAS: Those areas of the Shopping Center which are included in the Gross Leased
Area. 
 (t) GROSS LEASED AREA: Floor area designed for tenant occupancy. 
 (u) LIABILITY INSURANCE LIMITS: $1,000,000 with respect to a combined single limit to include injuries to or death of any one person, and any one
occurrence to property damage. 
 (v) LEASE YEAR: The Term “Lease Year” shall mean, in the case of the first Lease year, that
period from the Rental Commencement Date to the first succeeding December 31; thereafter, “Lease Year” shall mean each successive twelve (12) calendar month period following the expiration of the first Lease Year, in each case
commencing on January 1 and ending the next succeeding December 31, except that in the event of the termination of this lease on any day other than December 31, then the last Lease Year shall be the period from the end of the
preceding Lease Year to such date of termination. 
 1.2 The exhibits enumerated in this section (if used) and attached to this lease are incorporated in
this lease by this reference and are to be construed as a part of this lease. 
  

	 	(a)	Exhibit “A,” Shopping Center building(s), subject to those areas shown as excluded. 

  

	 	(b)	Exhibit “B,” General floor area plan of Premises and building containing Premises. 

  

	 	(c)	Exhibit “C,” Description of Landlord’s Work and Tenant’s Work. 

  

	 	(d)	Exhibit “D,” Estimated charges for those items set forth in Section 5.3 and 16.2. 

  

	 	(e)	Exhibit “E,” N/A 

  

	 	(f)	Exhibit “F,” Rules and Regulations. 

  

	 	(g)	Exhibit “G,” Special Stipulations. . 

  

	 	(h)	Exhibit “H,” Sign Criteria. 

 ARTICLE II

 CONSTRUCTION AND ACCEPTANCE OF PREMISES 
 2.1 Landlord agrees that it will promptly commence and diligently pursue the construction of those building and improvements shown on Exhibit “A” which will contain the Premises as designated on Exhibit
“B” and with respect to the Premises will complete Landlord’s Work as defined in Exhibit “C” on or before the Scheduled Completion Date, with such minor variations as Landlord may deem reasonably necessary due to
unavailability of materials. Tenant shall have no right to enter or occupy the Premises until the Premises are Ready for Occupancy, except for purposes of installing vaults which of its nature requires installation prior to opening for business with
prior written approval and consent from Landlord and provided such work must accommodate Landlord’s construction schedule and process. Notwithstanding anything to the contrary contained in this Lease, in the event that Landlord does not deliver
the Premises to the Tenant in the condition required under this within ninety (90) days following the Scheduled Completion Date, Tenant may, in its sole discretion, elect to terminate this Lease upon five (5) days written notice to
Landlord provided such notice is given within thirty (30) days following such period. 
 2.2 Tenant agrees to submit to Landlord plans
and specifications for any and all improvements which are Landlord’s responsibility, within sixty (60) days after the date of this lease, in such detail as Landlord may reasonably request covering Tenant’s Work as specified in Exhibit
“C”, and any other work which Tenant proposes to do in the Premises. Such plans and specifications shall substantially comply with all requirements set forth in Exhibit “C”. Tenant shall not commence any work in the Premises
until Landlord has approved such plans and specifications, in writing, which approval shall not be unreasonably withheld, conditioned or delayed. Landlord shall approve or disapprove (with reasonable specificity) Tenant’s plans and
specifications in writing within thirty (30) days after Landlord has received the same from Tenant. In the event that Landlord fails to timely approve or disapprove Tenant’s plans and specification as required herein, then Landlord shall
be deemed to have granted its approval. 
 2.3 Upon written notification from Landlord that the Premises are Ready for Occupancy, Tenant
agrees to take possession and proceed with commercially reasonable due diligence to perform the work described in such plans and specifications which have been approved by Landlord and to install its fixtures, furniture, and equipment in the
Premises. Upon occupying the Premises, Tenant shall be deemed to have acknowledged that the Landlord has complied with all of its covenants and obligations with respect to the construction of the Premises, except for punch list items and defects in
Landlord’s Work which are latent at the time the Premises are occupied. 
 2.4(a) Unless delayed by events of force majeure or other
events beyond Tenant’s reasonable control, Tenant agrees to employ reasonable efforts to open the Premises to the public for business within one hundred eighty (180) days after the Premises are Ready for Occupancy, except that Tenant shall
not be obligated to open the Premises to the public for business until Landlord has substantially completed construction of the Shopping Center; including all Common Areas. 
 (b) In the event that Tenant fails to open the Premises for business fully fixtured, stocked, and staffed within one hundred and eighty (180) days
from the Rental Commencement Date, then, unless such delay is caused or occasioned by Landlord or events of force majeure or other events beyond Tenant’s reasonable control, the Tenant shall be in default hereunder. 
 2.5 Intentionally Deleted. 
 2.6
Intentionally Deleted. 
  

 2 
 Please
initial: 
 Landlord:              Tenant:
             

 2.7 Intentionally Deleted. 
 ARTICLE III 
 RENT 
 3.1 Rental and other charges due and payable hereunder shall accrue hereunder from the Rental Commencement Date until the termination of this lease and
shall be payable to Clearwater Retail Partners, LLC at the following mailing address unless otherwise directed by Landlord in writing: c/o 630 Chestnut Street, Clearwater, Florida 33756. 
 3.2 The first monthly installment shall be due and payable on or before the Rental Commencement Date (except that if the Rental Commencement Date falls
on a day other than the first day of a calendar month, the first payment shall be an amount equal to that percentage of monthly installment which the number of days from the Rental Commencement Date to the end of such calendar month bears to the
total number of days in such month) and a like installment, unless adjusted upward as provided below, shall be due and payable without notice on or before the first day of each succeeding calendar month during the Term. Unless otherwise specifically
provided for in this lease, the covenant of Tenant to pay all rents hereunder is and shall be deemed a separate and independent covenant and Tenant shall have no right of deduction or set-off whatsoever. It is agreed that after the First
Lease Year and during the Lease Term and Option Periods, Minimum Guaranteed Rental shall be computed as follows: Multiply the Minimum Guaranteed Rental provided for in Article 1.1 (g) by a fraction, the numerator of which is the Consumer Price
Index established for the last preceding December, and the denominator of which is the Consumer Price Index established for the month preceding the Rental Commencement Date of this lease. If the product thus ascertained is greater than the Minimum
Guaranteed Rental, said product shall be the new Minimum Guaranteed Rental payable to Landlord by Tenant during each month of the ensuing Lease Year; and if the product thus ascertained is equal to or less than the Minimum Guaranteed Rental, the
total monthly rental payable to Landlord by Tenant during each month of the ensuing Lease Year shall be the Minimum Guaranteed Rental payable under Article 1.1 (g). The total Minimum Guaranteed Rental for each Lease Year after the First Lease
Year during the Lease Term shall be recomputed in accordance with the above stated formula as soon as practicable after the end of each Lease Year of this lease. Notwithstanding the foregoing, the adjustment annually will always be based upon a
minimum increase of 1% and maximum increase of 2% annually. The foregoing annual increases shall be cumulative. 
 For the purposes of this
Article 3.2, “Consumer Price Index” shall mean that consumer price index established by the Bureau of Labor Statistics of the United States Department of Labor which is entitled “Consumer Price Indexes for All Urban Consumers, United
States City Average, All items 1982-84 = 100 Unadjusted,” or in the event said index is no longer provided by said Bureau of Labor Statistics, the index furnished by said Bureau which most accurately and completely replaces said
above-referenced index. 
 3.3, 3.4, 3.5 Intentionally Deleted. 
 ARTICLE IV 
 SALES REPORTS AND RECORDS 
 4.1,4.2,4.3 Intentionally Deleted. 
 ARTICLE V 
 COMMON AREAS 
 5.1 Tenant, and it licensees, concessionaires, employees and customers shall have the non-exclusive right to use the Common Areas as constituted from time to time, such use to be in common with Landlord, other Tenants
of Shopping Center and other Tenants of Shopping Center and other persons entitled to use the Common Area, subject to such reasonable rules and regulations as Landlord may from time to time prescribe, provided that Landlord shall provide Tenant with
at least sixty (60) days prior written notice of any such rule or regulation. Landlord may require that automobiles owned by Tenant, its licensees, concessionaires and employees be parked in specific portions of the Common Areas. Upon
reasonable written request by Landlord, Tenant shall have thirty (30) days to furnish to Landlord a complete list of the license numbers of all automobiles operated by Tenant, its licensees, concessionaires and employees. If Tenant, its
licensees, concessionaires and employees fail to park their cars in the designated Common Areas, Landlord shall have the right in its sole discretion to (i) charge Tenant ten Dollars ($10.00) per day per car parked in any Common Areas other
than those designated, and/or (ii) have such car(s) physically removed from the Shopping Center at Tenant’s expense without any liability whatsoever to Landlord. Tenant shall not interfere with the rights of other persons to use the Common
Areas. Landlord may temporarily close any part of the parking facilities or other portions of the Common Areas for such minimal periods of time as may be reasonably necessary for (i) temporary use as a work area in connection with the
construction of buildings or other improvements within the Shopping Center or contiguous property, (ii) repairs or alterations in or to the Common Areas or to any sewers, utility facilities or distribution lines located within the Common Areas,
(iii) preventing the public from obtaining prescriptive rights in or to the Common Areas, (iv) security reasons, or (v) doing and performing such other acts (whether similar or dissimilar to the foregoing) in, to and with respect to,
the Common Areas as in the use of good business judgment the Landlord shall reasonably determine to be appropriate for the Shopping Center, provided however, that Landlord shall use reasonable efforts not to unduly interfere with or disrupt
Tenant’s business. Notwithstanding anything to the contrary contained in this lease, Landlord shall not be permitted to take any action with respect to the Common Areas and/or parking areas or make any changes, repairs, temporary closings or
modifications to the Common Areas and/or parking areas, if the same will (1) cause a change in the size, location, orientation or visibility of the Premises or the Shopping Center, (2) reduce or impede access to the Premises or the
Shopping Center, or (3) reduce the proximity of the Premises to the parking areas or the impact the convenience of the parking facilities to the Premises or block Tenants drive through facility. The parking ratio for the Shopping Center at the
Rental Commencement Date will be 5.41 parking spaces for each 1,000 rentable square foot of space in the Shopping Center. Notwithstanding anything to the contrary contained in this lease, if any event or action or omission by Landlord renders the
parking facilities for the Shopping Center for whatever reason inaccessible, unusable, unsafe, or which causes the number of parking spaces for the Shopping Center to be reduced below applicable local code requirements (which reasons may include but
are not limited to repairs, maintenance, casualty, condemnation, or displacement or dislocation caused by future construction), Landlord shall immediately provide substitute parking facilities for Tenant’s use and its invitees which facilities
shall (i) cause no net reduction in Tenant’s parking space allocation, (ii) be similarly convenient in terms of location, quality and safety, and (iii) except in the case of an emergency, be designated by prior written notice to
Tenant. 
  

 3 
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initial: 
 Landlord:              Tenant:
             

 5.2 Tenant agrees to pay as additional rent, as herein provided, its share of expense commercially
reasonable and necessarily incurred by Landlord for the operation and maintenance of the Common Areas (“CAM Expenses”), including without limiting the generality of the foregoing, costs incurred for lighting, painting, cleaning, central
trash disposal (if Landlord elects to provide), traffic control, policing, security, landscaping and repairing the Common Areas, hazard and public liability insurance and property damage insurance, all water consumed in Shopping Center which is not
separately metered to Tenants (single or multiple) thereof together with an allowance of 10% of CAM Expenses, other than taxes and insurance, for Landlord’s direct overhead but excluding depreciation of Landlord’s original investment in
Shopping Center. Notwithstanding anything to the contrary contained in this lease, additional rent shall not include the following: (1) capital expenditures required by Landlord’s failure to comply with any law, statute, regulation, or
other governmental or quasi-governmental requirement; (2) costs incurred for capital improvements to reduce CAM Expenses above the amount actually saved as the result of such capital improvements; (3) rent for a management office and rent
and expenses for a marketing office; (4) any amounts paid to any person, firm or corporation related to or otherwise affiliated with Landlord or any general partner, officer, director or shareholder of Landlord or any of the foregoing, to the
extent the same exceeds arm’s length competitive prices paid in Clearwater, Florida for similar services or goods; (5) costs incurred to remove any hazardous materials or other toxic material or substances from either the Shopping Center;
(6) costs relating to maintaining Landlord’s existence, either as a corporation, partnership, trust or other entity, such as trustee’s fees, annual fees, partnership expenses, and legal and accounting fees (other than with respect to
Shopping Center operations); (7) Landlord’s general overhead expenses above the ten percent (10%) cap described above; (8) costs and expenses resulting from the negligence or willful misconduct of Landlord or its employees,
contractors or agents; and (9) attorney’s fees and other costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants, other occupants of the Shopping Center, or other third parties and roof
repair or replacement as set forth in Section 8.1 below. CAM Expenses shall be reduced by all cash discounts, trade discounts or quantity discounts received by Landlord or Landlord’s managing agent in the purchase of any goods, utilities
or services in connection with the prudent operation of the Shopping Center. In the calculation of any CAM Expenses hereunder, it is understood that no expense shall be charged more than once. Landlord shall use its best efforts in good faith to
effect an equitable proration of bills for services rendered to the Shopping Center and to any other property owned by Landlord or an affiliate of Landlord. In the event there exists a conflict as to an expense which is specified to be included in
CAM Expenses and is also specified to be excluded from CAM Expenses within the above list, the exclusions listed above shall prevail and the expenses shall be deemed excluded. Landlord shall not recover more than 100% of the CAM Expenses actually
incurred by Landlord. Capital expenditures required due to changes in applicable governmental or other regulations that were not required when the building was built shall be considered CAM Expenses. The share to be paid by Tenant shall be that
percentage of CAM Expenses which the Gross Leased Area of the Premises bears to the Gross Leased Area of the Shopping Center. Landlord and Tenant agree that the Gross Leased Area of the Premises shall be determined based on the “as built”
site plan approved by the appropriate governmental authority. Upon such approval Landlord shall submit to Tenant a copy of the approved site plan along with a calculation of the Gross Leased Area for the Premises. Landlord shall, within ninety
(90) days after the commencement of each Lease Year, notify Tenant in writing of the monthly charges due from Tenant based upon the Landlord’s good faith estimate of annual CAM Expenses. Within ninety (90) days after the close of each
calendar year, Landlord will furnish to Tenant a detailed statement of the expenses relating to the Common Areas for such year, such statement to be prepared in accordance with generally accepted accounting practices and to include Tenant’s
proportionate share of the expenses relating to the Common Areas computed as herein provided. Any necessary adjustments (in the form of an additional payment or a refund from Landlord to Tenant) shall be made sixty (60) days after delivery of
such statement. 
 Landlord agrees to retain the books and records substantiating the CAM Expenses incurred in each calendar year for a
period of at least three (3) years from the date Landlord submits an annual statement to Tenant. Tenant or its designee shall have the right, during business hours and upon reasonable prior notice, from time to time to inspect Landlord’s
books and records relating to CAM Expenses, and/or to have such books and records audited at Tenant’s expense by a certified public accountant designated by Tenant. Any audit that discloses a discrepancy of more than five percent (5%) in
the annual CAM Expenses shall be at Landlord’s expense and Landlord shall reimburse Tenant for such cost (including reasonable attorneys’ fees) within thirty (30) days of the result of the audit. Any discrepancy shall be promptly
corrected by a payment of any shortfall to Landlord by Tenant within thirty (30) days after the applicable audit, or by a credit against the next payment(s) of rent hereunder or (at Tenant’s election) a refund from Landlord of the overpaid
amount within thirty (30) days, as may be applicable. In the event Tenant does not contest a statement of CAM Expenses within three (3) years after it is rendered, such statement shall become binding and conclusive on both Landlord and
Tenant, except that any such statement which may contain material misrepresentations shall not be binding and conclusive on Tenant. In the event Landlord shall fail to invoice Tenant for any CAM Expenses pursuant to this article within one
(1) year, then Landlord shall be deemed to have waived its right to collect such CAM Expenses. In addition, in the event that Landlord shall fail to invoice Tenant for any CAM Expenses pursuant to this article within six (6) months
following the expiration or termination of the term of this lease, then Landlord shall be deemed to have waived its right to collect such CAM Expenses. 
 5.3 In the event Tenant is not billed directly by the appropriate authority for water consumed on the Premises and/or for sewer rents or charges, the bill rendered by Landlord for the above shall be based upon
Tenant’s prorated share of such service as reasonably determined by Landlord and shall be payable by Tenant within thirty (30) days of receipt of Landlord’s bill, and such costs or expenses incurred or payments which are made by the
Landlord for water or sewer service used on the Premises shall be deemed to be CAM Expenses payable by Tenant and collectible by Landlord as such. 
 ARTICLE VI 
 USE AND CARE OF PREMISES 
 6.1 Subject to those exceptions set forth in Section 7.5 below, Tenant shall in good faith continuously throughout the Term of this lease conduct and carry on in the entire Premises the type of business described
in Section 1.1 (q) and no material portion of the Premises shall not be used of any other purpose. Any other use shall be subject to Landlord’s prior written approval, which shall not be unreasonably withheld, conditioned or delayed.
Tenant shall use Tenant’s Trade Name in the transaction of business in the Premises. Tenant shall not sell, display or solicit sales in the Common Areas. Tenant shall not use or permit the use of any vending machines or public telephones on, at
or about the Premises without the reasonable prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed. Tenant shall not knowingly commit waste, perform any acts or carry on any practices which will
injure the Shopping Center or be a nuisance or menace to other tenants in the Shopping Center. Tenant shall operate is business in a commercially reasonable manner and in accordance with reasonably high standards of store operation so as to maintain
a character in keeping with the rest of Shopping Center, and shall, at all times when the Premises are open for business with the public, keep the Premises properly equipped with fixtures and attended by adequate personnel. 
  

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 6.2 In the use and occupancy of the Premises, Tenant shall comply with all laws and ordinances and any
other applicable government or agency thereof applicable to the Premises and all requirements of any public agency having authority over insurance rates. 
 6.3 Tenant shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Premises by Tenant, its agents, employees, contractors or invitees, without the prior written consent of
Landlord (which Landlord shall not unreasonably withhold as long as Tenant demonstrates to Landlord’s reasonable satisfaction that such Hazardous Material is necessary or useful to Tenant’s business and will be used, kept and stored in a
manner that complies with all laws regulating any such Hazardous Material so brought upon or used or kept in or about the Premises). Notwithstanding the foregoing, Landlord recognizes and acknowledges that Tenant or its agents may use and store
within the Premises reasonable quantities of customary office and cleaning supplies; provided such items are stored, used and disposed of in accordance with applicable federal, state or local law. If Tenant breaches the obligations stated in the
preceding sentence, or if the presence of Hazardous Material on the Premises caused or permitted by Tenant results in contamination of the Premises, or if contamination of the Premises by Hazardous Material otherwise occurs, then Tenant shall
Indemnify, defend and hold Landlord harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities or losses (including, without limitation, diminution in value of the Premises, damages for the loss or restriction on use
of leased or usable space or of any amenity of the Premises, damages arising from any adverse Impact or marketing of space, and sums paid in settlement of claims, attorneys’ fees, consultant fees and expert fees) which arise during or after the
lease term as a result of such contamination. This Indemnification of Landlord by Tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work
required by any federal, state or local governmental agency or political subdivision because of Hazardous Material present in the soil or ground water on or under the Premises. Without limiting the foregoing, if the presence of any Hazardous
Material on the Premises caused or permitted by Tenant results in any contamination of the Premises, Tenant shall promptly take all actions at its sole expense as are necessary to return the Premises to the condition existing prior to the
introduction of any such Hazardous Material to the Premises; provided that Landlord’s approval of such actions shall first be obtained, which approval shall not be unreasonably withheld so long as such actions would not potentially have any
material adverse long-term or short-term effect on the Premises. Landlord represents and warrants that to the best of its knowledge and belief there are no Hazardous Materials on, in or under the Premises, land or Shopping Center. Landlord covenants
not to bring onto the land or Shopping Center, any Hazardous Materials. Landlord’s covenant shall survive the expiration or earlier termination of this lease. Landlord shall indemnify Tenant and hold it harmless against any claims, damages,
losses or liabilities (including reasonable attorney’s fees) incurred by Tenant and arising from any breach of the foregoing representation and warranty and from the presence or removal of the Hazardous Materials. 
 As used herein, the term “Hazardous Material” means dangerous, hazardous or toxic substance, material or waste which is or becomes regulated by
any, local governmental authority, the State in which the Premises are located or the United States Government. 
 ARTICLE VII

 TENANT’S COVENANTS 
 7.1 Tenant shall not, nor shall Tenant at any time permit any occupant of the Premises to, (i) conduct or permit any fire, bankruptcy or auction sale (whether real or fictitious) unless directed by order of a court of bankruptcy or of
competent jurisdiction, or conduct or permit any fictitious “Going Out of Business” sale; (ii) use, or permit to be used, the malls or sidewalks adjacent to such Premises, or any other area outside the Premises for the sale or display
of any merchandise or for any other business, occupation or undertaking, or for outdoor public meetings, circus or other entertainment (except for promotional activities in cooperation with the management of the Shopping Center or an association of
merchants within the Shopping Center); (iii) use or permit to be used, any sound broadcasting or amplifying device which can be heard outside of the Premises; (iv) operate or cause to be operated any “elephant trains” or similar
transportation devices; (v) use or permit to be used any portion of the Premises for any unlawful purpose or use or permit the use of any portion of the Premises as regular living quarters, sleeping apartments or lodging rooms or for the
conduct of any manufacturing business; (vi) use of the Premises for or conduct therein activities, the purpose for which is excluded from or inconsistent with or not included within the purpose for which the Premises may be used according to
Section l.l(q) of this lease, or (vii) use, operate or maintain the Premises in such manner that any of the rates for any insurance carried by Landlord shall thereby be increased, unless Tenant shall pay to Landlord an amount equal to any such
increase in rates, provided that Tenant receives reasonably detailed written evidence of such increase and the cause(s) thereof. 
 7.2
Tenant (i) will not represent or advertise that it regularly or customarily sells merchandise at “manufacturers”, “distributor’s”, or “wholesale”, “warehouse”, “fire sale”, “bankruptcy
sale”, or similar prices or other than at retail prices; (ii) will keep all mechanical apparatus free of vibration or noise which may be transmitted beyond the confines of the Premises; (iii) will not cause or permit odors to emanate
from the Premises; (iv) will not load or unload or permit the loading or unloading of merchandise, supplies or other property except within the area designated by Landlord from time to time, except for deliveries and pick-ups by armored cars
and/or trucks; and (v) will not permit the parking or standing, outside of such designated area, of trucks, trailers or other vehicles or equipment engaged in such loading or unloading, except for deliveries and pick-ups by armored cars and/or
trucks. 
 7.3 Tenant (i) will keep reasonably clean the inside and outside of all glass in the doors and windows of the Premises;
(ii) will replace promptly at its own expense with glass of like kind and quality any plate or window glass; (iii) will replace doors or door hardware of the Premises which may for any reason become cracked or broken (iv) will
maintain the Premises in a reasonably clean, orderly and sanitary condition and free of insects, rodents, vermin, and other pests; (v) will not permit undue accumulation of garbage, trash, rubbish or other refuse in the Premises; and
(vi) will keep such refuse in proper containers inside the Premises until such time as same is called for to be removed. 
 7.4 Tenant
shall keep the Premises open for business with the public not less than five (5) days per week and seven (7) hours per day (excepting weeks with legal holidays). 
 In no event shall any tenant be open for business less than thirty (30) hours in any given week, except for weeks containing any legal holiday. Notwithstanding the provisions of this Section, no tenant shall be
required to keep its Premises open for business at any time prohibited by applicable law, ordinance or governmental regulations and Tenant shall be permitted to close the Premise during reasonable periods for repairing, cleaning or decorating the
Premises, with written permission from Landlord which permission shall not be unreasonably withheld, conditioned or delayed. 
  

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 7.5 In the event that at any time during the Term, or any extension or renewal thereof, Tenant shall
vacate, abandon, or desert the Premises or cease operating the store therein for more than ten (10) consecutive days, then, in any such event, Tenant shall be in default hereunder and Landlord shall have all rights and remedies provided under
Section 17.4 hereof, provided, however, that the foregoing requirement to continuously operate shall not apply during any period when the Premises are rendered untenantable by reason of lack of or insufficient parking, heat, electricity or
water, the right to sublet or assign in accordance with this lease, closure, interruption or cessation of operations due to the merger or consolidation of or by Tenant within the financial services industry, construction or installation of any
alterations, decorations, additions or improvements in accordance with the terms of this lease, fire, casualty, or cause beyond Tenant’s control and not resulting from the intentional or negligent acts or omissions of Tenant, its assignees,
subtenants, servants, agents, employees, invitees, licensees, or concessionaires, or the servant, agents, employees, invitees, licensees, or concessionaires of Tenant’s assignees or subtenants, and the failure to operate Tenant’s store
during such period shall not be deemed a default hereunder. 
 7.6 If Tenant is engaged in retail sales, then Tenant shall install and
maintain at all times display of merchandise in display windows in the Premises. Tenant will light any electric signs and keep the display windows in the Premises well lighted during such times as the level of light outside the Premises is less than
ten (10) foot candles of natural light, except that Tenant shall not be required to keep its electric signs and windows lighted more than one hour following the store closing hour. 
 7.7 The rules and regulations as shown on Exhibit “F” are hereby made a part of this lease, and Tenant agrees to comply with and observe the
same. Tenant’s failure to keep and observe said rules and regulations shall constitute a breach of the terms of this lease in the manner as if the same were contained herein as covenants. Landlord reserves the right from time to time to amend
or supplement said rules and regulations and to adopt and promulgate additional reasonable rules and regulations applicable to the Premises and the Shopping Center. At least sixty (60) days written notice of such additional rules and
regulations, and amendments and supplements, if any, shall be given to Tenant and Tenant agrees thereupon to comply with and observe all such rules and regulations, and amendments thereto and supplements thereof, provided the same shall apply
uniformly to all tenants of the Shopping Center. Landlord shall not enforce the rules and regulations so as to unfairly or unjustly discriminate against Tenant. To the extent that the rules and regulations conflict with the terms of this lease, the
lease shall control in all respects. 
 ARTICLE VIII 
 MAINTENANCE AND REPAIR OF PREMISES, 
 ALTERATIONS AND LANDLORD’S RIGHT OF ACCESS

 8.1 Landlord shall keep the foundation, the roof and the exterior walls of the Premises (except plate glass, doors, door closures,
door frames, store fronts, windows and window frames located in exterior building walls) in first class condition and good repair, except that Landlord shall not be required to make any repairs occasioned by the act of gross negligence or willful
misconduct of Tenant, its assignees, subtenants, servants, agents, employees, invitees, licensees, or concessionaires, or the servants, agents, employees, invitees, licensees, or concessionaires of Tenant’s assignees or subtenants, or any
damage caused by break-in, burglary, or other similar acts in or to the Premises. In the event that the Premises should become in need of repairs required to be made by Landlord hereunder, Tenant shall give prompt written notice thereof to Landlord;
and Landlord shall promptly begin to make such repair and with reasonable due diligence complete the same. 
 8.2 Landlord shall maintain in
a good and first class condition, similar to other first class shopping centers in the Tampa, Florida area, all foundations, structural elements, roofs, exterior surfaces and walls of all buildings in the Shopping Center, including without
limitation the Premises. Notwithstanding anything to the contrary contained in this lease, Landlord shall be responsible for compliance with any requirements of any board of fire underwriters or similar body relating to the Shopping Center or any
other law, rule, statute, regulation or ordinance of any governmental agency or body having jurisdiction over the Shopping Center (collectively, “Laws”) that apply to shopping centers in Tampa, Florida generally. To the best of
Landlord’s knowledge and belief, the Shopping Center will be in compliance with such applicable Laws, in effect as of the Rental Commencement Date. 
 8.3 Tenant shall, at its sole cost and expense, keep the Premises in a reasonably safe, slightly, and serviceable condition and free from any infestation by insects, rodents, or other pests, make all needed
maintenance, repairs, and replacements for the proper operation of Tenant’s business within the Premises, including, but not limited to, all maintenance, repairs, and replacements to (i) the heating, ventilating, and air conditioning
systems located within and exclusively serving the Premises; (ii) the exterior and interior portion of all doors, windows, window frames, plate glass, door closures, door frames and store fronts; (iii) all plumbing and sewage facilities
located within and exclusively servicing the Premises; (iv) all fixtures within the Premises; (v) all electrical systems located within and exclusively serving the Premises; (vi) all sprinkler systems located within and exclusively
serving the Premises; (vii) all interior walls, floors, and ceilings; (viii) any of Tenant’s Work; (ix) all repairs, replacements, or alterations required by any governmental authority; and (x) all necessary repairs and
replacements of Tenant’s trade fixtures required for the proper conduct and operation of Tenant’s business. If at any time and from time to time during the Term, and any extensions and renewals thereof, Tenant shall fail to make any
maintenance, repairs, or replacements in and to the Premises for more than thirty (30) days after written notice from Landlord, Landlord shall have the right, but not the obligation, to enter the Premises and to make such maintenance, repairs,
and replacements for and on behalf of Tenant, and all actual and documented sums expended by Landlord for such maintenance, repairs, and replacements shall be deemed to be additional rent hereunder and shall be payable to Landlord upon thirty
(30) days written demand. Tenant shall keep in force a standard maintenance agreement on all heating, ventilating, and air conditioning systems located within and exclusively serving the Premises with a reputable heating and air conditioning
service organization. After the Rental Commencement Date Tenant shall, at its own cost and expense, make or cause to be made all such alterations to the Premises (including without limiting the generality of the foregoing, removing barriers and
providing alternative services) as shall be required for compliance with the Americans with disabilities Act of 1990, as now or hereafter amended, and the rules and regulations from time to time promulgated thereunder. 
 8.4 Tenant shall not make any alterations, additions, or replacements to the Premises, or any repairs required of Landlord under Section 8.1 of this
lease, without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed, except for Tenant’s Work and the, installation of moveable fixtures such as Tenant’s moveable vault or safety
deposit compartments. All alterations, additions, and improvements made in and to the Premises and all floor covering that is cemented or adhesively fixed to the floor and all fixtures (other than trade fixtures) which are installed in the Premises
shall remain in and be surrendered with the Premises and shall become the property of Landlord at the expiration or sooner termination of this lease. Landlord hereby waives any lien rights which it may otherwise have concerning Tenant’s
property, which shall include furniture, fixtures, equipment, any and all equipment and/or supplies utilized by Tenant in its business operations (“Tenant’s Property”), and Tenant shall have the right to remove the same at any time
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consent, provided that Tenant shall repair and restore any damage to the Premises, caused or occasioned by such removal. Notwithstanding anything to the
contrary contained in this lease, Tenant shall be allowed to make non-structural alterations, which are decorative in nature, up to $50,000.00 without Landlord’s consent or approval. 
 8.5 All Tenant’s Work and all repairs, alternations, additions and improvements done by Tenant within the Premises shall be performed in a good and
workmanlike manner, in compliance with all governmental requirements, and at such times and in such manner as will cause a minimum of interference with other construction in progress and with the transaction of business in Shopping Center. Whenever
Tenant proposes to do any construction work within the Premises, Tenant shall first furnish to Landlord plans and specifications covering such work in such detail as Landlord may reasonably request. Such plans and specifications shall comply with
such requirements as Landlord may from time to time reasonably prescribe for construction within the Shopping Center. Except as otherwise provided in this lease, in no event shall any construction work be commenced within the Premises without
Landlord’s written approval of such plans and specifications. All plans and specifications submitted to Landlord for alterations to the Premises shall be in compliance with all applicable laws and governmental and quasi- governmental rules and
regulations. Landlord shall approve or disapprove with reasonable specificity any Tenant’s plans and specifications within thirty (30) days after Landlord has received such plans and specifications. If Landlord fails to timely approve or
disapprove with reasonable specificity, then Landlord shall be deemed to have granted its approval. 
 8.6 Upon not less than forty-eight
(48) hours prior written notice to Tenant and subject to Tenant’s reasonable security procedures and requirements, Landlord shall have the right, but not the duty, to enter upon the Premises at any time for the purpose of inspecting the
same, or of making repairs to the Premises, or of showing the Premises to lenders or to prospective purchasers or, within the last six (6) months of the Term, tenants. Landlord shall use reasonable efforts to minimized any interference with
Tenant’s use and occupancy of the Premises. 
 8.7 Tenant shall not suffer or permit any materialmen’s, mechanics’,
artisans’ or other liens to be filed or placed or exist against the land or building of which the premises are a part, or Tenant’s interest in Premises by reason of work, services or materials supplied or claimed to have been supplied to
Tenant or anyone holding the Premises or any part thereof through or under the Tenant, and nothing contained in this lease shall be deemed or construed in any way as constituting the consent or request of Landlord, expressed or implied, to any
contractor, subcontractor, laborer or materialman for the performance of any labor or the furnishing of any materials for any improvements, alternations or repairs of or to the Premises or any part thereof, nor as giving Tenant any right, power or
authority to contract for or permit the rendering of any services or the furnishing of any materials that would give rise to the filing of a materialmen’s, mechanics’ or other lien against the Premises. If any such lien should, at any
time, be filed, Tenant shall cause the same to be discharged of record within thirty (30) days after the date of filing the same. If Tenant shall fail to discharge such lien within such period, then, in addition to any other right or remedy of
Landlord, Landlord may, but shall not be obligated to, discharge the same either by paying the amount claimed to be due or by procuring the discharge of such lien by a deposit in court or by posting a bond. Any amount paid by Landlord for any of the
aforesaid purposes, or for the satisfaction of any other lien not caused by Landlord, and all reasonable, actual and documented expenses of Landlord in defending any such action or in procuring the discharge of such lien, shall be deemed additional
rent hereunder and shall be repaid by Tenant to Landlord within thirty (30) days of written demand therefor. 
 Notwithstanding the
foregoing it is understood and agreed that Tenant shall have no right to incur a lien against the premises in accordance with any Florida Statute. 
 ARTICLE IX 
 SIGNS, STORE FRONTS AND ROOF 
 9.1 Unless specifically provided otherwise in this lease, Tenant shall not, without the prior written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned or delayed, (i) paint, decorate or make any changes to the store front of the Premises; (ii) install any exterior lighting, awning, or protrusions, or any exterior signs, advertising matter, decoration or
painting; (iii) install any drapes, blinds, shades or other coverings on exterior windows and doors; (iv) affix any window or door lettering, sign decoration or advertising matter to any window or door glass; or (v) erect or install
any signs, window or door lettering, placards, decorations, or advertising media of any type which can be viewed from the exterior of the Premises, excepting only dignified displays of customary type in store windows. Tenant may, in Tenant’s
sole and absolute discretion, install at Tenant’s expense an exterior sign, in the location shown on Exhibit “H-l” attached hereto, conforming to the general appearance of other signs in Shopping Center and the Sign Criteria set forth
in Exhibit “H” (if used). Tenant shall at all times keep its sign(s) in reasonably good condition, in proper operating order and in accordance with all applicable government regulations, normal wear and tear excepted. Use of the roof of
the Premises is reserved to Landlord, and Landlord may install upon the roof HVAC or other customary equipment, signs, antenna, and other objects, provided any such use does not interfere with Tenant’s occupancy of the Premises. Tenant, with
Landlord’s prior written approval, which approval shall not be unreasonably withheld, denied or delayed may install communication equipment on the roof, provided that any such installation work is performed by Landlord’s roofing contractor
and any work completed does not void any warranties. 
 If Landlord should undertake any remodeling or renovation of the Shopping Center
which requires modification of Tenant’s signs, then Tenant shall, if reasonably required by Landlord, conform to the standard Sign Criteria used for such remodeling or renovation. 
 Notwithstanding the foregoing Tenant shall have the right to install its prototypical signage on both the front and rear of the building, in the location
shown on Exhibit “H-l” attached hereto, if allowed by code and at no additional cost to Tenant. 
 ARTICLE X 
 UTILITIES 
 10.1 Landlord agrees to
cause to be provided such mains, conduits and other facilities necessary to supply electricity, water, sewer, telephone and gas (if available) to the Premises, in accordance with and subject to any special provisions contained in Exhibit
“C”. 
 10.2 Tenant shall pay, prior to delinquency, all charges for electricity, water, sewer, telephone, solid waste and garbage
removal, gas (where applicable), and chilled water service (where applicable) furnished to the Premises, and Landlord may, if it so elects, furnish one or more of such services to Tenant, and, in such event, Tenant shall purchase such services as
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tendered by Landlord and shall pay for such services at the rates actually paid therefor by Landlord to the applicable public utility provider, provided that
such rates shall not exceed the rates which would be charged for the same service if furnished directly by the applicable public utility then furnishing such service. In the event that at any time during the Term, or any extensions and renewals
thereof, Tenant shall fail to pay any of the foregoing charges within thirty (30) days after written demand therefor, Landlord shall have the right, but not the obligation, to pay such charge or charges for and on behalf of Tenant and such
amounts so paid shall be deemed to be additional rent hereunder and shall be payable by Tenant to Landlord upon at least thirty (30) days after written demand therefor. 
 10.3 Except as provided in this Section, Landlord shall not be liable in the event of any interruption in the supply of any utilities including without
limitation any heating and air-conditioning if provided. Tenant agrees that it will not install any equipment which will exceed or overload the capacity of any utility facilities serving the Premises and that if any equipment installed by Tenant
shall require additional utility facilities, the same shall be installed at Tenant’s expense in accordance with plans and specifications to be approved in writing by Landlord. Notwithstanding anything contained in the lease to the contrary, if
any interruption of utilities or services, which is due to the negligence of Landlord, its agents or employees, shall continue for more than twenty-four (24) continuous hours and shall render any portion of the Premises unusable for the normal
conduct of Tenant’s business, and if Tenant does not in fact use or occupy such portion of the Premises, then all rent payable hereunder with respect to such portion of the Premises which Tenant does not occupy shall be abated retroactively to
the first (1st) business day of such interruption and such abatement shall continue until full use of such portion of the Premises is restored to Tenant. 
 ARTICLE XI 
 INDEMNITY AND NON-LIABILITY 
 11.1 Except as arising from Landlord’s gross negligence or willful misconduct, Tenant does hereby agree to indemnify and save Landlord harmless from
and against any and all liability for any injury to or death of any person or persons or any damage to property in any way arising out of or connected with the condition, use or occupancy of the Premises, or in any way arising out of the activities
in the Premises, Common Areas or other portions of Shopping Center, of the Tenant, its assigns or subtenants or of the respective agents, employees, licensees, concessionaires or invitees of Tenant, its assigns, or subtenants and from all costs,
expenses and liabilities, including, but not limited to, court costs and reasonable attorneys’ fees, incurred by Landlord in connection therewith. Tenant hereby agrees to indemnify and hold Landlord harmless from and against any and all claims,
demands, actions, damages, fines, judgments, penalties, costs (including attorney’s and consultant’s fees), liabilities and losses resulting from Tenant’s failure to make non-structural alterations to the Premises or other
accommodations required to be made, as a result of Tenant’s use of the Premises, by the Americans with Disabilities Act of 1990, as now or hereafter amended, and the rules and regulations promulgated thereunder. Except as resulting from
Tenant’s negligence or misconduct, Landlord does hereby agree to indemnify and save Tenant harmless from and against any and all liability for any injury to or death of any person or persons or any damage to property in any way arising from
Landlord’s or its agents or employees (i) ownership, management or control of the Shopping Center, the land upon which the Shopping Center is located, or the Common Areas, (ii) breach of Landlord’s obligations under this lease,
(iii) any act or omission of Landlord, its agents or employees, or (iv) any work done by or the presence of the Landlord’s contractors in the Shopping Center or the land upon which the Shopping Center is located and from all costs,
expenses and liabilities, including, but not limited to, court costs and reasonable attorneys’ fees, incurred by Tenant in connection therewith. The provisions of this Section 11.1 shall survive the expiration or other termination of this
lease. 
 11.2 Tenant covenants and agrees that Landlord shall not be liable to Tenant for any damage to any property of Tenant arising out
of any accident or occurrence on the Premises or any other portion of Shopping Center, including, without limiting the generality of the foregoing, damage caused by the Premises or other portions of Shopping Center becoming out of repair or caused
by any defect in or failure of equipment, pipes, or wiring, or caused by broken glass, or caused by the backing up of drains, or caused by gas, water, steam, electricity, or oil leaking, escaping or flowing into the Premises, or caused by fire or
smoke, or caused by any acts or omissions whatsoever, except as arising from: (i) Landlord’s breach of its obligations under this lease; or (ii) the gross negligence or willful misconduct of Landlord or its agents or employees.

 11.3 Landlord shall not be responsible or liable at any time for any loss or damage to Tenant’s merchandise, equipment, fixtures or
other personal property or to Tenant’s business. 
 ARTICLE XII 
 PUBLIC LIABILITY INSURANCE 
 12.1 Tenant shall, at its sole cost and expense,
procure and maintain throughout the Term of this lease a policy or policies of insurance, insuring Tenant, Landlord and any other persons designated by Landlord against any and all liability for injury to or death of a person or persons and for
damage to property occasioned by or arising out of the condition of the Premises, the use or occupancy of the Premises or any construction work being done on the Premises by Tenant, or if applicable, boiler explosion. The limits of such policy shall
be in an amount not less than the Liability Insurance Limits described herein and shall be written by an insurance company or companies reasonably satisfactory to Landlord. Such policies shall be non-cancelable except after ten (10) days’
written notice to Landlord and designees of Landlord. Such policies or duly executed certificates of Insurance with respect thereto shall be delivered to Landlord prior to the Rental Commencement Date and renewals thereof as required shall be
delivered to Landlord within thirty (30) days request from Landlord. 
 12.2 At all times during the Term of this Lease, Landlord shall
maintain: (i) standard all-risk fire and casualty insurance, covering the Shopping Center in amounts at least equal to ninety percent (90%) of the replacement cost of the Shopping Center at the time in question, but in no event less than
such coverage as is required to avoid coinsurance provisions; (ii) comprehensive public liability insurance with minimum limits of $2,000,000 for injury to or death of one or more persons in any one occurrence and $2,000,000 for damage to or
destruction of property in any one occurrence; and (iii) such other insurance coverage as is customarily carried in respect of comparable shopping centers. At the Tenant’s request the Landlord shall furnish the Tenant a certificate or
certificates of insurance certifying that the insurance coverage required hereby is in force. Any insurance required by the terms of this Lease to be carried by the Landlord may be under a blanket policy (or policies) covering other properties of
the Landlord and/or its related or affiliated corporations. If such insurance is maintained under a blanket policy the Landlord shall procure and deliver to the Tenant a statement from the insurer or general agent of the insurer setting forth the
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 ARTICLE XIII 
 DAMAGE BY CASUALTY 
 13.1 Tenant shall give immediate written notice to Landlord of any damage to the
Shopping Center or Premises caused by fire or other casualty, and if neither Landlord nor Tenant does not elect to terminate this lease as hereinafter provided, Landlord shall promptly commence and diligently pursue and at its sole cost and expense
to rebuild and repair the Shopping Center and/or Premises within the applicable time period set forth herein. Notwithstanding the foregoing, in the event that (i)) the building in which the Premises are located shall be destroyed or substantially
damaged by casualty not covered by standard fire or extended coverage insurance, (ii) said building shall be destroyed or rendered untenantable by any casualty to the extent of at least fifty percent (50%) of the Gross Leased Area of said
building, (iii) Landlord shall not have actual and unconditional receipt of the insurance proceeds payable in connection with such damage and destruction, (iv) the holder of any mortgage, deed to secure debt, deed of trust, or other
instrument in the nature thereof which encumbers Landlord’s interest hereunder or in the Premises shall require that such proceeds shall be applied against any indebtedness owed to such holder, or (v) there shall be less than nine
(9) months remaining in the Term, or any extension or renewal thereof, then, in any of such events, either Tenant or Landlord may elect either to terminate this Lease. Landlord or Tenant shall give written notice to the other of such election
within thirty (30) days after the occurrence of such casualty. 
 13.2 Landlord’s obligation to rebuild and repair the Premises
under this Article XIII shall in any event be limited to restoring Landlord’s Work to substantially the condition in which the same existed prior to the casualty, and Tenant agrees that promptly after the completion of such work by Landlord,
Tenant will proceed with reasonable diligence and at its sole cost and expense to restore Tenant’s leasehold improvements to substantially the condition in which the same existed prior to the casualty. 
 13.3 During the period from the occurrence of a casualty until Landlord’s repairs are completed, the Minimum Guaranteed Rental (but not percentage
rental) shall be reduced and abated in proportion to the amount of Gross Leased Area of the Premises which is rendered untenantable as a result of such casualty; provided, however, that if such damage or destruction is caused by the intentional or
grossly negligent acts or omissions of Tenant, it assignees, subtenants, servants, agents, employees, invitees, licensees, or concessionaires, or the servants, agents, employees, invitees, licensees, or concessionaires of Tenant’s assignees or
subtenants, then, and in that event, the Minimum Guaranteed Rental shall not abate. Unless the occurrence of a casualty arose as a result of Landlord’s gross negligence or willful misconduct, Tenant shall not be entitled to and hereby waives,
releases, and relinquishes any and all claims against Landlord for any compensation or damage for loss of use of all or any part of the Premises or for any inconvenience or annoyance occasioned by any such damage, destruction, repair or restoration
of the Premises. 
 13.4 Tenant agrees at all times at its expense to keep its merchandise, fixtures, Tenant’s Work and its other
property situated within the premises insured against fire, with extended coverage, to the extent of at least eighty (80%) percent of the full insurable value thereof. Such insurance shall be carried with companies reasonably satisfactory to
Landlord. Such insurance shall be non-cancelable except after ten (10) days written notice to Landlord. Such policies are duly executed certificates of insurance with respect thereto shall be delivered to Landlord prior to the Rental
Commencement Date and renewals thereof as required shall be delivered to Landlord within at least thirty (30) days prior written notice to Tenant. The proceeds of such insurance shall be payable to Landlord and Tenant, jointly, for the use by
Tenant only, except with the consent of the Landlord, for the repair and replacement of merchandise, fixtures, Tenant’s Work, or other property which was situated within the Premises. 
 13.5 All fire and extended coverage insurance carried by Landlord or Tenant covering loses arising out of destruction of or damage to the Premises or its
contents or to other portions of the Shopping Center shall, to the extent reasonably obtainable, provide for waiver or subrogation against Landlord, Tenant or other Tenants in Shopping Center, on the part of the insurance carrier. Evidence of
existence of such waiver will be furnished by either party on request. 
 13.6 Notwithstanding anything to the contrary contained in this
Lease, in the event that Landlord does not promptly commence and diligently pursue any repairs or restoration required pursuant to this Article XIII or fails to complete the same within one hundred eighty (180) days after the date of the
applicable damage or destruction, then Tenant shall have the right to (i) terminate this Lease upon ten (10) days prior written notice to the Landlord; (ii) make such repairs that do not exceed an aggregate amount of $75,000.00 and
deduct such cost from the Minimum Guaranteed Rent. 
 ARTICLE XIV 
 EMINENT DOMAIN 
 14.1 If more than twenty percent of the Gross Leased Area of
the Premises is taken for any public or quasi-public use under any governmental law, ordinance, or regulation, or by right of eminent domain or by private purchase under threat thereof, the lease period shall terminate upon the election of either
party effective on the date possession of a portion of the Premises is taken by the condemning authority. 
 14.2 If less than twenty percent
of the Gross Leased Area of the Premises is taken for public of quasi-public use under any governmental law, ordinance, or regulation, or by right of eminent domain, or by private purchase under threat thereof, this lease shall not terminate, or if
any more than twenty percent of the Gross Leased Area of the Premises is so taken and this lease is not terminated in accordance with Section 14.1, then in either of such events the Minimum Guaranteed Rental and percentage rental payable
hereunder during the unexpired portion of the term shall be reduced by the percentage which the area taken bears to the area of the Premises prior to the date of possession of such portion of the Premises is taken by the condemning authority.

 14.3 If any portion of the Common Areas should be taken for any public or quasi-public use under governmental law, ordinance, or
regulation, or by right of eminent domain, or by private purchase under threat thereof, this lease shall not terminate, nor shall the rent payable hereunder be reduced, nor shall Tenant be entitled to any part of the award made for such taking,
except that either Landlord of Tenant may terminate the lease period if the parking area remaining following such taking, plus any additional parking area provided within a reasonable time by Landlord in reasonable proximity to the Shopping Center,
shall be less than seventy percent of the original parking area. 
 14.4 Any election to terminate the lease period following condemnation
shall be evidenced by written notice of termination delivered to the other party within thirty days after the date by which both Landlord and Tenant are notified of such taking or such sale, and, in the event that neither Landlord nor Tenant shall
so exercise such election to terminate the lease period, then lease shall continue in full force and effect, subject to any rental abatement. 
  

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 14.5 If the lease period is not terminated following any condemnation, Landlord shall make all necessary
repairs or alterations within the scope of Landlord’s Work necessary to make the Premises an architectural whole, and Tenant agrees that promptly after completion of such work by Landlord, Tenant will proceed with reasonable diligence and at
its sole cost and expense to make all necessary repairs or alterations within the scope of Tenant’s Work necessary to make the Premises an architectural whole. 
 14.6 All compensation awarded for any taking (or the proceeds of private sale under threat thereof), whether for the whole or a part of the Premises, shall be the property of Landlord, whether such an award is
compensation for damages to Landlord’s or Tenant’s interest in the Premises, and Tenant hereby assigns all of its interest in any such award to Landlord; provided, however, Landlord shall have no interest in any award made to Tenant for
loss of business or for the taking of Tenant’s fixtures and personal property within the Premises if a separate award for such items is made to Tenant. 
 ARTICLE XV 
 ASSIGNMENT AND SUBLETTING 
 15.1 Tenant shall not assign or transfer all or any portion of its interest in this lease or in the Premises, or sublet all or any portion of the
Premises, without the prior written consent of the Landlord, which consent shall not be unreasonably withheld, conditioned or delayed. Except as expressly permitted by the terms of this Lease, any assignments or sublease without Landlord’s
prior written consent shall be voidable, at Landlord’s election. Consent by Landlord to one or more assignments or sublettings shall not operate a waiver of Landlord’s rights with respect to any subsequent assignment or subletting. If
Tenant is a partnership, a withdrawal or change (voluntary, involuntary, or by operation of law) of any partner owning 20% or more of the partnership, or the dissolution or liquidation of the partnership, shall be deemed an assignment of this lease.
If Tenant consists of more than one person, a purported assignment (voluntary, involuntary, of by operation of law) from any of such persons to any other person or entity shall be deemed an assignment of this lease. If Tenant is in a corporation,
any dissolution, merger, consolidation, or other reorganization of Tenant, or the sale or other transfer of the controlling percentage of the capital stock of Tenant, or the sale of fifty-one percent (51%) of the value of the assets of Tenant,
shall be deemed an assignment of this lease. The phrase “controlling percentage” means the ownership of, and the right to vote, stock possessing at least fifty-one percent (51%) of the total combined voting power of all classes of
Tenant’s capital stock issued, outstanding, and entitled to vote for the election of directors. The foregoing provision shall not apply to corporations, the stock of which is regularly traded through an exchange of or over the counter. The term
“sublet” shall be deemed to include the granting of licenses, concessions, and any other rights of occupancy of any portion of the Premises, excepting only customary leased department arrangements under such leased department is not
operated under a separate name and is held out to the public as an integral part of the Premises. The gross sales of each such leased department shall be deemed a part of Tenant’s Gross Sales for the purpose of determining percentage rent
payable by Tenant to Landlord. Notwithstanding the anything to the contrary contained in this lease, any assignment or subletting of the Premises or a portion thereof to a parent, subsidiary or affiliate of Tenant (collectively,
“Affiliate”), whether by merger, succession or consolidation, or a joint venture or partnership in which Tenant, or its Affiliate, is a general partner shall not require Landlord’s approval under the terms of this lease or otherwise.

 15.2 The term “Landlord” as used in this lease means only the owner or entity from time to time owning the building containing
the Premises, so that in the event of any sale or sales thereof, the Landlord who is a granter in any such sale shall be and hereby is, without further agreement, entirely freed and relieved of all the obligations of Landlord hereunder accruing
subsequent to such transfer. Any such sale or sales of the Premises, unless pursuant to a foreclosure sale or deed of lieu of such foreclosure, shall be subject to this lease and it shall be deemed and construed without further agreement that the
purchaser at any such sale has assumed and agreed to carry out any and all obligations of Landlord under this lease so long as such purchaser shall be the owner of the building containing the Premises. 
 15.3 Tenant shall not mortgage, pledge, or otherwise encumber its interest in this lease. Tenant has only the right to use of the structure, not subject
to levy, sale or other transfer, whether voluntary or by operation of law, except in accordance with this Article XV. 
 15.4 [Intentionally
Deleted] 
 15.5 Any request by Tenant for approval to sell or sublet the Premises or to transfer or assign Tenant’s interest in this
lease, shall be accompanied by a processing charge in the amount of $ 500.00. 
 15.6 Landlord in determining whether to give consent shall
consider the following factors for any assignment, subletting or mortgage pledge otherwise encumbering the leasehold interest: (a) the financial responsibility of the proposed sub-Tenant (provided that Tenant is relieved of liability under the
Lease as a result of the sublease or assignment); (b) the identity or business character of the sub-Tenant, i.e., suitability for the particular building;; and (c) the legality of the proposed use. 
  

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 ARTICLE XVI 
 TAXES 
 16.1 Tenant shall be liable for and shall pay all taxes levied against personal property,
fixtures, and Tenant’s work in the Premises; if such taxes for which Tenant is liable are levied against Landlord or Landlord’s property and if Landlord elects to pay the same or if the assessed value of Landlord’s property is
increased by inclusion of any such items and Landlord elects to pay the taxes based on such increase, Tenant shall pay to Landlord upon forty-five (45) days written notice accompanied by the tax bill and a reasonably detailed description and
calculation of Tenant’s responsibility for the same, that part of such taxes for which Tenant is liable hereunder. 
 16.2 Tenant agrees
to pay as additional rent, its share of the general real estate taxes, assessments, and governmental charges levied against Shopping Center (“Taxes”) for each calendar year beginning with the Rental Commencement Date and during the lease
term and any renewals and extension thereof. Notwithstanding anything to the contrary contained herein, Taxes shall not include any tax upon Landlord’s net income or profits and shall also not include: federal, state or local income taxes,
franchise, gift, transfer, excise, capital stock, estate, succession, or inheritance taxes. Landlord shall pay all Taxes by the date due, and shall, upon Tenant’s written request, furnish Tenant with evidence of such payment. Landlord shall not
include in Taxes any interest or penalties incurred by Landlord by reason of Landlord’s failure to pay in a timely manner any Taxes Landlord shall use its best efforts in good faith to effect an equitable proration of Taxes relating to the
Shopping Center and any other property owned by Landlord or an affiliate of Landlord. Landlord shall not recover more than 100% of the Taxes actually incurred by Landlord. In the event there exists a conflict as to a tax which is specified to be
included in Taxes and is also 
 specified to be excluded from Taxes within the above list, the exclusions listed above shall prevail and the tax shall be
deemed excluded. Said Taxes and assessments shall be appropriately pro-rated during the first and last years of the lease term if such years are less than full calendar years. The proportionate share to be paid by Tenant shall be that percentage of
Taxes which the Gross Leased Area of the Premises bears to the Gross Leased Area of the Shopping Center. In the case of special taxes or assessments which are payable in installments, only the amount of each installment paid during the calendar year
shall be included in Taxes for that year. Landlord shall, within ninety (90) days after the commencement of each Lease Year, notify Tenant in writing of the monthly charges due from Tenant based upon the Landlord’s good faith estimate of
annual Taxes. 
 16.3 Tenant agrees to pay as additional rent any rent tax or other tax imposed upon rent payments or imposed upon Landlord
based upon rent payments by Tenant to Landlord; however Tenant shall not be required to pay any income tax of Landlord. 
 ARTICLE XVII

 DEFAULTS AND REMEDIES 
 17.1 If Tenant fails to keep or perform any covenant or provision of this lease (except the payment of any installment of rent or other charge or money obligation herein required to be paid by Tenant) or violate any covenant or provision,
and such failure or violation shall continue for a period of thirty (30) days after written notice by Landlord, or in case of a failure or violation which cannot with due diligence be cured within a period of thirty (30) days, if Tenant
fails to cure such failure or violation promptly after the service of such notice and with due diligence, then Landlord may in addition to any other remedies at law or in equity or elsewhere in this lease provided, cure or prosecute the curing of
such failure or violation at reasonable expense, which expense shall be deemed to be additional rental hereunder and shall be paid to Landlord by Tenant on demand. Tenant agrees that in the event of any failure or violation covered by this
Section 17.1 and Landlord’s failure to give notice or to exercise any rights under this Section 17.1, all rights of Landlord under this Section 17.1 may be exercised by persons acting on behalf of Landlord, under authority
granted by Landlord, with full right or reimbursements provided hereunder. Tenant agrees that neither Landlord nor any such person acting on Landlord’s behalf shall be liable for any loss or damage suffered by Tenant resulting from the exercise
of the rights under this section. 
 17.2 Any installment of rent or other charge or money obligation herein required to be paid by Tenant
which is not paid within five (5) days of when due shall bear interest at the rate of twelve (12%) percent per annum or at the maximum rate allowed by law, whichever is less, from the due date until paid and the Landlord may treat any such
charge or money obligation as additional rent hereunder. 
 Notwithstanding the foregoing, Should it be determined that the aggregate of any charges
described herein exceed the maximum allowed by law, the parties agree to reduce said charges to an amount that is equal to the maximum allowed by law. 
 17.3 The happening of any one or more of the following shall be deemed to be events of default under this lease: 
 (a) The making by Tenant of an assignment for the benefit of its creditors; 
 (b) The levying of a writ of execution or attachment
on or against the property of Tenant within the Premises and the same not being released or discharged within fifteen (15) days thereafter; 
 (c) The institution of proceedings in a court of competent jurisdiction for the reorganization, liquidation, or voluntary or involuntary dissolution of Tenant, or for its adjudication as a bankrupt or insolvent, or for an appointment of a
receiver of the property of Tenant, and/or for the appointment of a receiver of the property of Tenant, and said proceeding not being dismissed, and any receiver, trustee or liquidator appointed therein not being discharged within thirty
(30) days after the institution of such proceedings; 
 (d) The doing, or permitting, of any act by Tenant which creates a lien or claim
therefor against the land or building of which the Premises are a part and the same not being released or otherwise provided for by indemnification satisfactory to Landlord within thirty (30) days thereafter; or 
 (e) Failure of Tenant to pay any installment of rent or other charge or money obligation herein required to be paid by Tenant within five (5) days
after such sum was not paid as and when due and payable. 
 17.4 Upon occurrence of any such events of default, Landlord shall have the
option to pursue any one or more of the following remedies without any notice or demand whatsoever; 
 (a) Terminate the lease period, in
which event Tenant shall immediately surrender the Premises to Landlord. Landlord may, without prejudice to any other remedy which it may have, enter upon and take possession of the Premises and expel and remove Tenant and any other person who may
be occupying the Premises or any part thereof, by force, if necessary, without being liable for prosecution or any claim of damages therefor. 
 (b) Not terminate the lease period but rather enter upon and take possession of the Premises and, if Landlord so elects, make such alterations and repairs as may be necessary to relet the Premises, and relet the Premises or any part
thereof, as the agent of Tenant, at such rent and for such term and subject to such terms and conditions as Landlord may deem advisable and receive the rent therefor. Upon each such reletting all rentals received from the Landlord from such
reletting shall be applied, first to the payment of indebtedness other than rent due hereunder from Tenant to Landlord; second, to the payment of any loss and expenses of such reletting, including brokerage fees and attorneys’ fees and costs of
such alterations and repairs; third, to the payment of rent due and unpaid hereunder; and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder; and Tenant agrees to pay
to Landlord on demand any deficiency that may arise by reason of such reletting. Notwithstanding any such reletting without termination, Landlord may at anytime thereafter elect to terminate the lease period for such previous breach and in such
event Tenant shall be liable for all costs described herein up to that point in time which Landlord elects to terminate the lease period. 
 (c) Landlord may without terminating this lease accelerate the amount of rent and charges equivalent to rent reserved in this lease for the remainder of the Term over the then reasonable rental value of the Premises for the remaining
portion of the Term, all of which amounts shall be immediately due and payable from Tenant to Landlord. In determining the rent which would be payable by Tenant hereunder, subsequent to default, the annual rent for each year of the unexpired term
shall be equal to the Average Minimum Guaranteed Rental to include annual escalator increases of three percent (3%). 
  

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 Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies herein
provided or any other remedies provided by law, nor shall pursuit of any remedy herein provided constitute a forfeiture or waver of any rent due to Landlord hereunder or any damages accruing to Landlord by reason of the violation of any of the
covenants and provisions herein contained. Forbearance by Landlord to enforce one or more of the remedies herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such default. 
 17.5 Tenant shall pay or reimburse Landlord for the payment of any actual and documented costs or expenses (including reasonable attorneys’ fees and
disbursements) incurred or expended by Landlord in connection with or incidental to (a) any default by Tenant hereunder or (b) the exercise or enforcement by or on behalf of the Landlord of any of its rights or remedies or Tenants
obligations under the lease, including the enforcement, compromise or settlement of the obligations of this lease; including the enforcement, compromise or settlement of the obligations of this lease; all actions taken by Landlord to protect its
security under this lease, including but not limited to consultation with an attorney whether or not the matter prompting such consultation is eventually involved in litigation; and the defense or assertion of the rights or claims of any Landlord
hereunder, whether by litigation (including litigation in a United States Bankruptcy Court) or otherwise. In the event of any litigation between the parties arising out of this lease or the collection of any funds due Landlord or Tenant pursuant to
this lease, the prevailing party shall be entitled to recover all costs incurred, including without limitation reasonable attorneys’ and paralegals’ fees and costs, whether such fees and costs are incurred at trial, on appeal or in any
bankruptcy proceedings. 
 17.6 Landlord hereby acknowledges receipt from Tenant of the Advance Deposit set forth in Section 1.1 (i),
which shall be applied to the first accruing installments of rent. 
 17.7 In the event Landlord fails to cure (or promptly commence and
diligently pursue the cure of) any breach or failure by Landlord to comply with any of Landlord’s obligations under this lease within a reasonable period (not to exceed thirty (30) days except in the case of an emergency in which case such
shorter time as is warranted by the particular circumstances) after Tenant furnishes Landlord with written notice of such failure, then Tenant shall have the right (but not the obligation) to perform such obligation on Landlord’s account and
Landlord shall reimburse Tenant upon demand for the amount expended by Tenant in performing such obligation (including but not limited to reasonable attorneys’ fees and costs of collection). If Landlord fails to make any payment of any sum
payable to Tenant hereunder within five (5) business days of demand, then such payment shall bear interest at the twelve percent (12%) from the sixth (6th) business day. In the event that Landlord fails to reimburse Tenant as
aforesaid within thirty (30) days from demand, Tenant shall have the right to offset the amount owed to Tenant against the next-accruing installment of rent due under this lease until fully satisfied. 
 ARTICLE XVIII 
 HOLDING OVER

 18. If Tenant remains in possession of the Premises after the end of the lease period without the execution of a new lease, Tenant
shall be deemed to be occupying the Premises as a Tenant in sufferance at a rent equal to the rent herein provided plus twenty-five percent of such amount and otherwise subject to all the covenants and provisions of this lease insofar as the same
are applicable to a Tenant at sufferance and in no event shall there be any renewal of this lease by operation of law. Notwithstanding anything to the contrary contained in this lease, provided Tenant vacates the Premises within ninety
(90) days after the expiration of the term of this lease, Tenant shall not be liable for any consequential or punitive damages resulting from Tenant’s holding over in the Premises. 
 ARTICLE XIX 
 SUBORDINATION 
 19.1 This lease and all rights of Tenant hereunder are and shall be subject and subordinate to the lien of any first priority mortgage, deed to secure
debt, deed of trust, or other instrument in the nature thereof which may now or hereafter affect Landlord’s fee title to the Premises or the Landlord’s interest hereunder and to any modifications, renewals, consolidations, extensions, or
replacements of any of the foregoing. 
 Simultaneously with the full execution of this lease, Landlord shall obtain a nondisturbance
agreement on Tenant’s behalf from the existing mortgagee, if any, on such mortgagee’s commercially reasonable standard form (and in recordable form) (“SNDA”), stating such mortgagee or any purchaser in a foreclosure sale shall
recognize and be bound by the terms of this lease upon a foreclosure or deed in lieu thereof (or termination of any such ground lease). With respect to all future mortgagees, Landlord shall secure for and promptly deliver to Tenant an SNDA from each
future mortgagee hereafter encumbering the Shopping Center. In confirmation of such subordination, Tenant, shall, upon thirty (30) days written demand, execute, seal and deliver to Landlord, without expense to Landlord, any or all instruments
in recordable form that may be requested by Landlord to evidence the subordination of this lease and all rights hereunder of the lien of any such mortgage, deed to secure debt, deed to trust or other instrument in the nature thereof, and each
renewal, modification, consolidation, replacement, and extension thereof. 
 Subject to the provisions of this Article XIX. in
addition Tenant shall, upon at least thirty (30) days of Landlord’s prior written request, execute, seal and deliver to Landlord without expense to Landlord, any and all instruments that may be necessary to make this lease inferior to the
lien of any such mortgage, deed to secure debt, deed of trust, or other instrument in the nature thereof, and each renewal, modification, consolidation, replacement, and extension thereof. 
 19.2(a) If the holder of any mortgage, deed to secure debt, deed of trust, or other instrument in the nature thereof shall hereafter succeed to the
rights of the Landlord under this lease, whether through possession or foreclosure action or delivery of a new lease, then, Tenant shall attorn to and recognize such successor as Tenant’s Landlord under this lease, and shall execute and deliver
any instrument that may be necessary to evidence such attornment. 
 (b) Upon the attornment provided for in subsection (a) above, this
lease shall continue in full force and effect as a direct lease between such successor Landlord and Tenant, subject to all the terms, covenants, and conditions of this lease; provided, however, that such holder, as successor Landlord, shall not be
liable for returning to Tenant, nor crediting against any rent due hereunder, any advance rentals previously paid by Tenant to Landlord. 
  

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 ARTICLE XX 
 NOTICES 

	

 20. Whenever any notice is required or permitted hereunder, such notice shall in writing.
Any notice or document required or permitted to be given to Landlord hereunder shall be deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, or with a nationally recognized overnight carrier addressed to
the Landlord at the address specified in Section 1.1 and any such notice or document required or permitted to be given to Tenant hereunder shall be delivered to the Premises or deposited in the United States Mail, postage prepaid, certified
mail, return receipt requested, or with a nationally recognized overnight carrier addressed to Tenant at the address specified in Section 1.1. 
 ARTICLE XXI 
 MISCELLANEOUS 
 21.1 One or more waivers of any covenant, term or condition of this lease by either party shall not be construed as a waiver of any subsequent breach of the same covenant, term or condition. The consent or approval by
either party to or of any act by the other party requiring such consent or approval shall not be deemed to waive or render unnecessary consent to or approval of any subsequent similar act. 
 21.2 This lease contains the entire agreement between the parties and no agreement, representation or inducement shall be effective to change, modify or
terminate this lease in whole or in part unless in writing and signed by the parties. 
 21.3 Tenant warrants that it has no dealing with any
broker other than European Equities Corporation in connection with the negotiations or executions of this lease, and Landlord and Tenant each agrees to indemnify the other and hold the other harmless from and against any and all cost, expense or
liability for commissions or compensation or other charges claimed by any broker or agent other than European Equities Corporation acting for Landlord or Tenant, as the case may be, with respect to this lease. 
 21.4 At anytime and from time to time, Tenant, on or before the date specified on a request made by Landlord, which date shall not be earlier than thirty
(30) days from the making of such request, shall execute, acknowledge and deliver to Landlord a certificate evidencing whether or not: 
 (a) This lease is in full force and effect; 
 (b) This lease has been amended in any way; 
 (c) There are any existing defaults hereunder to the knowledge of Tenant and specifying the nature of such default, if any; and 
 (d) The date to which rent, including percentage rental, if any has been paid. 
 Each certificate delivered pursuant of this section 22.7 may be relied on by any prospective purchaser or transferee of the Shopping Center or of
Landlord’s interest hereunder or by any mortgagee of the Shopping Center or of Landlord’s interest hereunder or by any assignee of any such mortgagee. 
 21.5 The terms, provisions and covenants contained in this lease shall apply to inure to the benefit of and be binding upon the parties herein to and there respective heirs, assigns, successors in interest and legal
representatives except as otherwise herein expressly provided. 
 21.6 Time is of the essence in this agreement. 
 21.7 The laws of the State of Florida shall govern the interpretation, validity, performance, and enforcement of this lease. If any provision of this
lease shall be held to be invalid or unenforceable, the validity and enforceability of the remaining provisions of this lease shall not be affected thereby. 
 21.8 Tenant shall, on and before the last day of the Terms hereof, or on the sooner termination hereof, peaceably and quietly leave, surrender and yield up unto Landlord the Premises, together with all alterations,
additions, improvements, fixtures, and equipment including all air-conditioning equipment but excluding trade fixtures and other personal property of Tenant, any Tenant, subtenant, licensee or concessionaire of Tenant, or any other occupant of the
Premises. Such alterations, additions, improvements, fixtures and equipment to be in reasonably good order and repair, reasonable wear and tear excepted. All such trade fixtures and other personal property shall be removed by Tenant on or before the
last day of the term hereof, and all such property not so removed shall be deemed abandoned by Tenant and conveyed to Landlord unless Landlord shall given notice to Tenant to remove all or any part hereof, in which event Tenant shall promptly at its
expense remove same, or Landlord may do so at Tenant’s expense. 
 21.9 Waiver of Jury Trial. Any right to a trial jury in any action or
proceeding to enforce or defend any rights under this lease is hereby waived by the Tenant and the Landlord and it is agreed by the Tenant and the Landlord that any such action or proceeding shall be tried before a judge and not before a jury.

 21.10 Landlord shall not allow any use which may be a nuisance, annoyance, inconvenience or damage to other tenants or occupants of the
Shopping Center, including without limiting the generality of the foregoing, the operation of any instrument or apparatus or equipment or the carrying on of any trade or occupation which emits an odor discernible outside of any Premises and which
may be deemed offensive in nature or noise by the playing of any musical instrument or radio or television or the use of any microphone, loudspeaker, electrical equipment or other equipment which may unreasonably disturb persons outside of any
Premises, nor 
 Any business conduct or practice promulgated, carried on or maintained by any occupant which, in the reasonably exercised
judgment of Tenant, may harm, or tend to harm the business or reputation of Tenant, or reflect, or tend to reflect, unfavorably on either the Shopping Center, Landlord, or other tenants or occupants, or which might confuse or mislead the public.
Such business conduct or practice aforesaid shall be deemed to include, but not be limited to “Head Shops” “Adult Cabarets”, “Topless Bars” or the business predicated upon a prurient interest or any schools and/or
similar areas in the Leased Premises devoted to the legal sale of articles of merchandise normally used or associated with illegal or unlawful activities such as the sale of paraphernalia used the use of controlled drugs. 
  

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 IN WITNESS WHEREOF the parties have caused this lease to be executed by their duly authorized officers and their
corporate seals, if applicable, to be hereunto affixed the day and year first above written. 
 Signed, sealed and delivered this 1st day of May, 2006 
  

					
	 	  	LANDLORD:
		
	 WITNESSES:
	  	Clearwater Retail Partners, LLC
			
	 Illegible Signature
	  	By:	 	David McComas, Managing Member
	 Signature
	  		 	
			
	 Peter Politis
	  	By:	 	 /s/ Gregory Politis

	 Print Name
	  	By:	 	Gregory Politis, Managing Member
			
	 Illegible Signature
	  		 	
	 Signature
	  		 	
			
	 Christopher Politis
	  	By:	 	Illegible Signature
	 Print Name
	  		 	
		
		  	TENANT:
		
		  	First State Bank
			
	 Illegible Signature
	  	By:	 	 /s/ David Ruppel

	 Signature
	  		 	 Executive Vice-President

			
	 Illegible Signature
	  		 	 Illegible Signature

	 Print Name
	  		 	
			
	 Illegible Signature
	  		 	
	 Signature
	  		 	
			
	 Illegible Signature
	  		 	
	 Print Name
	  		 	

  

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 EXHIBIT A 
 LEGAL DESCRIPTION 
 To be attached 
  

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 EXHIBIT “A” 
 A portion of Tract 12 of Port Richey Land Company Subdivision of Section 28, Township 25 South, Range 16 East, as shown on the Plat recorded in Plat Book 1, Pages 60 and 61, of the Public Records of Pasco County,
Florida, being further described as follows: 
 Commence at the Southeast corner of the Northeast 1/4 of said Section 28, The same being Southeast
corner of said Tract 12; thence along the South boundary line of the NE 1/4 of Said Section 28 (Basis of Bearings). The same being the South boundary line of said Tract 12, North 89°40’58” West, a distance of 150.00 feet; thence
North 00°00’18” West, a distance of 55.00 feet to the North right-of-way line of Ridge Road (County Road No. 587-A) as described in Official Record Book 1865, Page 1392 of the Public Records of Pasco County, Florida, for a Point
of Beginning; thence North 89°40’36” West a distance of 133.45 feet; thence North 00°17’17” East, a distance of 74.25 feet; thence North 60°26’17” East, a distance of 10.38 feet; thence North
00°17’17” East, a distance of 5.00 feet; thence South 89°42’16”East, a distance of 11.53 feet; thence North 00°17’17” East, a distance of 160.63 feet; thence South 89°40’58” East, a distance of
111.69; thence South 00°00’04” West, a distance of 245.07 to the Point of Beginning. Said lands situate in Pasco County, Florida and containing 29,191 square feet more or less. 
 Together with: 
 That certain Easement recorded in Official Record
Book 6359, Page 388, and that certain Agreement and Grant of Easement recorded in Official Record Book 2094, Page 0778, both of the Public Records of Pinellas County, Florida. 

 EXHIBIT “B” 
 Site Plan 
  

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 EXHIBIT “C” 
 DESCRIPTION OF LANDLORD’S WORK AND TENANT’S WORK 
  

	I.	DESCRIPTION OF LANDLORD’S WORK 

 Landlord’s work shall be done in accordance with the specifications set forth below, shall be limited to the work set forth below and shall exclude all other work on the Premises or elsewhere. 
  

	A.	PUBLIC AREAS 

 1. Clearing, grading and landscaping of
public areas in Shopping Center. 
 2. Paving, sidewalks marking and lighting of the roadway and parking areas of the Shopping Center.

  

	B.	STRUCTURE 

 1. The foundation, columns, structural frames,
beams and floors shall be designed to carry loads in accordance with governing building codes. 
 2. Any walls which are below the finished
grades and which are in contact with the soil shall receive dampproofing. 
 3. The roof of the Premises shall be an insulated, built-up,
bondable roof. 
 4. Vanilla Shell consisting of the following: 
 Unfinished Storefront w/double 3-foot door 
 Concrete slab floor (unfinished) 
 Demising walls to be taped/spackled and painted 
 Suspended ceiling grid installed; panels provided and installed 
 (25) 4-lamp 2x4 prismatic fixtures 
 2 Restrooms (two) ADA Compliant Handicap accessible 
 Two lavatory sinks (standard) 
 Two toilets (standard) 
 Two mirrors (standard) 
 Tne exhaust fans (standard) 
 Tne toilet paper dispensers (standard) 
 Ceiling wraparound fixture in lavatory (not wall mounted) (standard) 
 One rear door 
 150 amp 3-phase service 
 Electrical panel
will be installed as part of white box (not just stub-up) 
 Receptacles provided in demising walls 
 Emergency and exit lights 
 HVAC unit provided
and installed by Landlord (including 10 tons for the Leased Premises, duct work, supply diffusers, return registers, standard thermostat and control wiring; Tenant is to supply all HVAC requirements and equipment in excess of the foregoing which
Tenant requires for the Leased Premises) 
 Wiring for tenant storefront signage provided 
 Plywood phone board provided. Size to be determined by Landlord 
 Re signage lighting: there will be a master house control on a time, but metered separately for each tenant 
 5. Install and construct only the canopy of the building which shall include the drive isles. Landlord shall not be responsible for any of Tenant’s fixtures, equipment or machines installed, except a Model 521 pneumatic tube system as
shown on Exhibit “C-l”, a Model WV5 Vision Drive through window as shown on Exhibit “C-2” and a Night Depository Model ND-2000 with 1” housing and 24” x 24” x 24” chest UL listed as shown on Exhibit
“C-3” and 300 linear feet of partitioning walls to be taped/spackled and painted and 12 standard interior doors. In the event the cost for the foregoing equipment exceeds $23,800.00, Tenant shall be responsible for amounts exceeding
$23,800.00. 
  

	C.	UTILITIES 

 1. Electricity. Landlord shall provide, or
cause to be provided, electrical conduits, lines, service and a separate meter to the boundary line of the Premises, with the capacity of 150 amps and any additional capacity needed shall be needed shall be provided by Tenant at Tenant’s
expense. 
 Landlord shall not provide or pay for the cost of any other electrical facilities required by Tenant such as, but not necessarily
limited to: burglar alarms, intercommunications systems, TV installations, light fixtures or appurtenances. All of such items shall be furnished and installed by Tenant. 
 2. Water and Sewer. Water pipe and sewer pipe shall be brought to the boundary of the Premises by the Landlord. Landlord shall construct Two (2) ADA compliant washrooms in accordance with Tenant’s plans. All
other plumbing facilities shall be furnished and installed by Tenant. Tenant shall pay Landlord for the cost of the meter and the cost of the installation thereof and throughout the duration of Tenant’s occupancy Tenant shall keep said meter
and installation equipment in good working order and repair at Tenant own cost and expense. Tenant agrees to pay for water consumed as shown on said meter as and when bills are rendered, and on default in making such payment Landlord may pay such
charges and collect the same from Tenant. 
 3. Telephone Conduit. Tenant shall provide all telephone conduit and wire within the Premises.

  

	D.	CONTRIBUTION 

  

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 Intentionally Deleted. 
  

	II.	TENANT’S WORK 

 All work on the Premises other
than Landlord’s Work as herein above defined shall be Tenant’s Work. Tenant shall secure all necessary licenses and permits prior to commencement of Tenant’s Work. 
 Tenant’s Work includes, but is not limited to the following: 
 A. Providing and installing all electrical fixtures, except as specifically above required to be furnished by Landlord. 
 B. Providing and installing all conduit and wire and paying service charges for telephone lines within the Premises. 
 C. Providing and installing all interior painting and decorating. 
 E. Providing and installing all show window backgrounds, show
window floors, show window ceilings, show windows light fixtures and special lighting requirements. 
 F. INTENTIONALLY DELETED 
 G. If Tenant provides Landlord the necessary written information prior to the fabrication of structural steel, then the cost of framing the openings and
curbs for penetration of Tenant’s equipment through the roof of the Premises shall be the Landlord’s obligation. In the event that the Tenant shall fail, not have an opportunity, or be unable for any reason to supply necessary information
to Landlord regarding roof openings and curb required by Tenant for Tenant’s equipment prior to the fabrication of the structural steel of the roof, then Tenant shall do its own framing, cutting of the roof deck and roofing, and Tenant shall
use the roofer employed by the Landlord in order to continue the roofer’s guarantee. 
 H. Temporary electric service shall be provided
each building on the premises by the Landlord, but Tenant shall have its own electrical contractor install a meter and Tenant shall pay for current consumed during Tenant’s construction period. Temporary lines during construction shall be run
from this meter at Tenant’s expense. 
  

	III.	CONTRIBUTION TO TENANT’S WORK - REIMBURSEMENT CONDITIONS 

 Landlord’s obligations to reimburse Tenant its contribution to Tenant’s Work shall be conditioned on Landlord’s written approval of the finished Tenant’s work. Such reimbursements shall also be
conditioned on Tenant’s furnishing Landlord the names of all contractors and subcontractors engaged in Tenants work; affidavits from each of them giving the amount of all obligations for labor and material furnished by them; and releases from
each of them from all liens and claims against Landlord or Tenant, or satisfactory indemnification against such liens and claims. Such reimbursements shall also be conditioned upon Tenant’s submission of all permits necessary for Tenant’s
construction and occupancy of the Premises and also Tenant’s having opened the Premises for business. Landlord hereby agrees at that time, that Landlord shall contribute thirty ($30.00) dollars per square foot towards Tenant’s Work. Tenant
agrees to use Whole Development construction company, provided Whole Development meets the average of three (3) bids supplied by Tenant which all shall be Florida licensed contractors. Tenant recognizes Whole Development is a Florida licensed
contractor. 
  

	IV.	ARCHITECTURAL AND CONSTRUCTION STANDARDS 

 All
Landlord’s Work and all Tenants Work under all classifications shall conform to the following architectural and construction standards: 
 A. Signs. Signs on the Premises shall be restricted in accordance with the sign criteria reasonable for a shopping center of comparable size, type and quality as developed by Landlord’s architect. Signs shall have no exposed lighting
source, no flashing no scintillating or moving lights. Except as provided in the Lease, all Tenants signs must be approved by the Landlord in writing, and are subject to exhibit “H” (if used). 
 B. Store Fronts and Entrances. Landlord may, at-its opinion, require coordinated treatment of the fascia or facade of the store front or of the fascia of
the marquee. Tenant’s store front shall be designed and constructed pursuant to Section I.D. of this Exhibit C. All swinging or sliding doors must be recessed in such manner that any door opening to the public walk will not cross the general
store line. 
 C. Projection Beyond Lines. No store front or any part thereof shall project beyond the exterior perimeter of the premises,
with the exception of signs approved by Landlord. 
 D. Heating, Air-conditioning and Ventilating. Heating, air-conditioning and ventilating
work shall be designed and constructed to maintain the following standards during store hours: 
 1. Heating Season: A prevailing minimum
temperature of approximately 70 degrees Fahrenheit with outside temperature ranging from 10 degrees Fahrenheit. 
 2. Cooling season: A
prevailing maximum temperature of 76 degrees Fahrenheit and a relative humidity of 50 percent. 
 3. The air-conditioning design standards are
subject to the following requirements and conditions: 
 (a) An outside dry bulb temperature of 95 degrees coincident with a wet bulb
temperature of 76 degrees Fahrenheit. 
 (b) An installed electric load of 9 watts per square foot of conditioned space. 
 (c) A maximum occupancy load of one person per fifty square feet of conditioned space. 
 (d) An outside air requirement of .05 c.f.m. per square foot of space, plus an amount equal to that exhausted by mechanical means or other exhaust
conditions which may from time to time exist on the Premises. 
  

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 4. In all service areas and storage areas, a prevailing minimum temperature of approximately 60 degrees
Fahrenheit shall be provided during the heating season and in the cooling season adequate ventilation shall be provided. 
  

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 EXHIBIT “D” 
 ESTIMATED CHARGES FOR THOSE ITEMS SET FORTH IN SECTION 5.3 and 16.2 
 COMMON AREA MAINTENANCE, INSURANCE AND TAXES:
$5.00 x 4,576 sq. ft. = $22,880.00 annually; $ 1,906.67 monthly. 
 It is understood that these charges are estimates only and are subject to change as
provided for in the body of this lease. 
  

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 EXHIBIT ‘E’ 
 GUARANTY TO LEASE 
 INTENTIONALLY DELETED. 
  

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 EXHIBIT “F” 
 RULES AND REGULATIONS 
  

	1.	Except for deliveries and pick-ups by armored cars and/or trucks, all deliveries or shipments of any kind to and from the demised premises including loading of goods shall be made
only by way of the rear of the demised premises or at any other location designated by Landlord, and only at such time designated for such purpose by Landlord. 

  

	2.	Tenant shall not use the public or common areas in the shopping center for business purposes or special events unless prior approval in writing has been granted by the Landlord.

  

	3.	Plumbing facilities shall not be used for any other purpose than that for which they are constructed, and no foreign substance of any kind shall be thrown therein.

  

	4.	Tenant shall use, at Tenant’s cost, a pest extermination contractor at such intervals as Landlord may require, but no less often than once annually. 

 

	5.	Tenant shall not place, or permit 

  

	 	(a)	displays, decorations, or shopping carts on the sidewalk or in front of the demised premises or upon any of the common areas of the shopping center. 

  

	 	(b)	anything to be displayed, stacked, hung from the ceiling, racked, stored, etc. on the sidewalks outside the shops unless the Tenant: 

  

	 	(1)	obtains the Landlord’s prior written approval; and 

	 	(2)	acquires adequate insurance coverage; and 

	 	(3)	accepts all liability for the sidewalk outside the shops 

  

	 	(c)	any bicycles, motorized or non-motorized vehicles to park on the sidewalks and only in designated places in common areas. 

  

	6.	Prior to installation, the Landlord must approve in writing all signs of any type which are to be installed or displayed in the common areas. Unauthorized signs will be removed by
Landlord without notice. 

  

	7.	Soliciting for any reason in the common areas requires prior written approval from the Landlord. 

  

	8.	Distribution of sales flyers, pamphlets, or any type of advertising literature in the common areas, on parked cars, etc. is only permitted with prior written approval of the
Landlord. Distribution of sales flyers, pamphlets, or any type of advertising literature by anyone other than the Tenants in the center is strictly prohibited. 

  

	9.	Tenant agrees to participate in trash pick-up as directed by Landlord. 

  

	10.	Unless directly related to business, as stated in the body of Lease, no animals will be allowed in the Common Area. 

  

	11.	Tenant shall not walk upon the roof of the Shopping Center, nor make any installations upon or through the roof or walls of the Shopping Center, without the prior written consent of
the Landlord. 

  

	12.	Landlord shall not enforce the rules and regulations so as to unfairly or unjustly discriminate against Tenant. To the extent that the rules and regulations conflict with the terms
of this lease, the lease shall control in all respects. 

  

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 EXHIBIT “G” 
 SPECIAL STIPULATIONS 
 To the extent that the following Special Stipulations conflict with any of the printed
provisions of this lease, the Special Stipulations shall control. 
 1. Radon Gas - Radon is a naturally occurring radioactive gas that, when it has
accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information
regarding radon and radon testing may be obtained from your county public health unit. 
 2. Tenant shall have, so long as the lease is in good and current
standing and all rental has been paid on a timely basis, the right and option to renew this lease for          2             
terms of five (5) years (the “Option Periods”) to commence immediately upon the expiration of the original term hereof upon the same terms and conditions as set forth in the lease and subject to the following: 
 (a) Tenant shall give one hundred twenty (120) days and no more than one hundred and eighty (180) days written notice to Landlord, by certified
mail, return receipt requested. 
 (b) Tenant is not late on more than four
(4) occasions within any twelve (12) month period during the term of this lease in the required payment of base rent or additional rent. For definition herein, a rental payment shall be considered “late” if its receipt by
Landlord is on or after the fifth (5th) calendar day of the month. 
 (c) Tenant has remained in full compliance with the Landlord’s rules and regulations, sign criteria, printed displays and show window lettering
established for the premises, and Tenant, has not failed to correct or remove any such item not approved by Landlord within ten (10) days following Landlords notice on same. 
 (d) Tenant has complied with the operating hours established for Tenants premises. 
 3. Tenant will have up to sixty (60) days of rent free commencing on the date of delivery of the Premises to Tenant Ready for Occupancy or Tenant’s opening for business, whichever comes first, in exchange
for its completing all of its own leasehold improvements, which will include Complete build-out including showroom, painting, flooring, counters, etc. All plans pertaining to the additions/remodeling will be submitted to Landlord within sixty
(60) days following the execution of this Lease for Landlord’s approval. All work will be completed within sixty (60) days after delivery of the Premises to Tenant Ready for Occupancy. All work shall be completed in a workmanlike
fashion meeting all building codes. Additionally, Landlord shall have the right to reasonably inspect the improvements. Landlord shall also have the right to inspect all final liens waivers. Tenant shall submit final lien waivers from all
contractors, subcontractors and suppliers to the extent available. 
 4. Brokerage Commission: Landlord shall be responsible for Brokerage Commission
required, as a result of a consummation of a lease on the property. Tenant and Landlord acknowledge that it has not utilized any other broker in this transaction except European Equities Corporation. Landlord will pay Brokerage Fees of 6% of the
value of the initial lease term, 1/2 due upon lease execution, 1/2 due when Tenant takes possession of the premises. 
 5. The Tenant acknowledges that the
Landlord has two (2) existing leases for the Premises. Landlord shall use its best efforts to terminate the existing leases. In the event that the Landlord can not terminate the existing leases within two (2) weeks from the effective date
of this lease, then this lease shall be deemed terminated and null and void. Landlord shall deliver written notice as to the status of the existing leases no later than two (2) weeks from the effective date of this lease. 
  

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 EXHIBIT “H” 
 SIGN CRITERIA 
 As provided by the lease, the Landlord must approve in writing all signs of any type the Tenant
wishes to install or display in the common areas or on the building. Any sign displayed in the common areas or on the building is subject to the Landlord’s written approval. Unauthorized signs will be removed by the Landlord without notice. Any
charge or expense incurred due to the removal and/or to repair any damage occasioned by that removal will be paid by Tenant and collected as additional rent under this lease. 
 Signage criteria is attached hereto and by reference made a part hereof. 
 All signs shall be maintained lit by Tenant and
in a good working order during the lease term. The signs shall be lit at a minimum from the hours of dusk until 11:00 p.m. nightly. 
 GENERAL:

 The installation of a sign and the costs incurs shall be the responsibility of the Tenant. Sign construction is to be completed in compliance with the
instructions, limitations, and criteria contained in this exhibit. 
  

	H-l	Signage of the stores in the Shopping Center shall utilize an Antique Olive Font lettering no more than 24” tall and white in color. 

  

	H-2	Each Tenant will be required to identify its premises by a sign. 

  

	H-3	Sign drawings shall clearly show graphic as well as construction and attachment details. Full information regarding electrical requirements and brightness is also to be included.

  

	H-4	Three (3) copies of a sign drawings shall be submitted to Landlord. 

  

	H-5	The wordings of signs shall be limited to Tenant’s Trade Name only. 

  

	H-6	Tenant will be permitted one sign only to be located on his Storefront. 

  

	H-7	All signs shall have concealed attachment devices, clips, wiring, transformers, lamps, tubes and ballast. 

  

	H-8	Signs letters or components shall not have exposed neon or other lamps. All light source shall be internal and concealed consisting of 13 to 15 millimeters of neon tubing.
Coordinate fasteners to prevent electrolysis. 

  

	H-9	The height of upper case sign letters or other components shall not exceed 24”. The height of the lower case sign letters or components shall not exceed 16”.

  

	H-10	Tenant’s sign shall not exceed 11/2 S.F. for each linear foot of Tenant’s storefront. No part of such sign shall be closer than 18” to the side lease lines of the
Leased Premises nor closer than 6” to the top and bottom of Tenant’s sign area. No part of the sign shall hang free of Tenant’s sign area. 

  

	H-l1	Tenant’s sign shall be mounted on the canopy fascia immediately in front of the Tenant’s leased area. 

  

	H-12	Signs shall not project more than 6” beyond the sign panel. 

  

	H-13	Signs shall be individual metal channel form letters internally neon illuminated with a plexiglass face. 

  

	H-l4	All signs shall be designed to meet local City sign ordinances. 

 NOTE:
Tenant shall have their sign company submit drawings to the Landlord for approval BEFORE having the sign manufactured. Landlord’s approval shall not be unreasonable withheld. Tenant will be required to remove any signs not pre-approved
that DO NOT meet the criteria and subject to all appropriate governmental approval. Tenant, at Tenant’s sole cost and expense may install panels on Landlord’s pylon sign in proportion to Tenant’s square footage within said Premises in
accordance to Exhibit “H-l.” 
  

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 EXHIBIT “H-l” 
 SIGN LOCATION 
 To be attached 
  

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