Document:

Prepared by R.R. Donnelley Financial -- Lease Agreement dated 10/16/2000

 Exhibit 10.9 
  
 AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION 
 STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE – NET 
 (DO NOT USE THIS
FORM FOR MULTI-TENANT BUILDINGS) 
  

	1.	 	Basic Provisions (“Basic Provisions”). 

  
 1.1 Parties: This Lease (“Lease”), dated for reference purposes only, October 16, 2000 is made by and between Lawrence L. Reece
Trust (“Lessor”) and Nextest Systems Corporation (“Lessee”), (collectively the “Parties,” or individually a “Party”). 
  
 1.2 Premises: That certain real property, including all improvements therein or to be provided by Lessor under the
terms of this Lease and commonly known as 1931 Monterey Road, Building 3, San Jose, located in the County of Santa Clara, State of California, and generally described as (describe briefly the nature of the property and, if
applicable, the “Project”, if the property is located within a Project) approximately 33,200 square feet of new industrial building (“Premises”). (See also Paragraph 2) 
  
 1.3 Term: Seven (7) years and Zero (0) months (“Original
Term”) commencing the later of the following: (1) the date the City of San Jose completes a final inspection and approves the shell building improvements so completed in accordance with the building permit per the Opus West Development
agreement, or (i) the date in which Lawrence L. Reece Trustee (Landlord) receives title and ownership of the property, or (ii) upon ten (10) days after Lessor serves Lessee Notice of Intent to start the Lease Commencement (“Commencement
Date”) (see Paragraph 58) and ending on the seventh (7th) anniversary of the Lease Commencement Date (“Expiration Date”). (See also Paragraph 3). 
  

1.4 Early Possession: Upon lease commencement (“Early Possession Date” (See also Paragraphs 3.2 and 3.3) 
  
 1.5 Base Rent: $74,700 NNN per month (“Base Rent”), payable
on See Addendum Paragraph 51 commencing See Addendum Paragraph 51 (See also Paragraph 4) 
  
 þ If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. 
  
 1.6 Base Rent Paid Upon Execution: See Addendum Paragraph 51 
  
 1.7 Security Deposit: $306,059 cash deposit and a letter of credit
per Addendum Paragraph 53 (“Security Deposit”). (See also Paragraph 5) 
  
 1.8 Agreed Use: General office and assembly purposes and other legal related uses of Nextest Systems Corporation (See also Paragraph 6) 
  

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 1.9 Insuring Party: Lessor is the “Insuring Party” unless otherwise stated
herein. (See also Paragraph 8) 
  
 1.10 Real Estate
Brokers: (See also Paragraph 15) 
  
 (a)
Representation: The following real estate brokers (collectively, the “Brokers”) and brokerage relationships exist in this transaction (check applicable boxes): 
  
 þ Grubb & Ellis Company (to be compensated by Lessor represents Lessor exclusively
(“Lessor’s Broker”); 
  
 þ
CPS (to be compensated by Lessee) represents Lessee exclusively (“Lessee’s Broker”); or 
  
  ̈
                                        
         represents both Lessor and Lessee (“Dual Agency”). 
  
 (b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Broker the fee agreed to
in their separate written agreement (or if there is no such agreement, the sum of               % of the total Base Rent for the brokerage services rendered by said
Broker). 
  
 1.11 Guarantor. The obligations of the Lessee
under this Lease are to be guaranteed by
                                       
                         
                                       
                                    
 (“Guarantor”). (See also Paragraph 37) 
  
 1.12 Addenda and Exhibits. Attached hereto is an Addendum or Addenda consisting of Paragraphs 50 through 59 and Exhibits A & B, all of which constitute a part of this Lease. 
  

	2.	 	Premises. 

  
 2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the
terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of size set forth in this Lease, or that may have been used in calculating rental, is an approximation which the Parties agree is reasonable and
the rental based thereon is not subject to revision whether or not the actual size is more or less. 
  
 2.2 Condition. Lessor shall deliver the Premises to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date,
whichever first occurs (“Start Date”), and, so long as the required service contracts described in Paragraph 7.1(b) below are obtained by Lessee within thirty (30) days following the Start Date, warrants that the existing
electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems (“HVAC”), loading doors, if any, and all other such elements in the Premises, other than those constructed by Lessee, shall be in good

  

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operating condition on said date and that the structural elements of the roof, bearing walls and foundation of any buildings on the Premises (the
“Building”) shall be free of material defects. If a non-compliance with said warranty exists as of the Start Date, Lessor shall, as Lessor’s sole obligation with respect to such matter, except as otherwise provided in this
Lease, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify same at Lessor’s expense. If, after the Start Date, Lessee does not give Lessor written notice of
any non-compliance with this warranty within: (i) one year as to the surface of the roof and the structural portions of the roof, foundations and bearing walls, (ii) six (6) months as to the HVAC systems, (iii) thirty (30) days as to the remaining
systems and other elements of the Building, correction of such non-compliance shall be the obligation of Lessee at Lessee’s sole cost and expense. 
  
 2.3 Compliance. Lessor warrants that the improvements on the Premises comply with all applicable laws, covenants or restrictions of record,
building codes, regulations and ordinances (“Applicable Requirements”) in effect on the Start Date. Said warranty does not apply to the use to which Lessee will put the Premises or to any Alterations or Utility Installations (as
defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for determining whether or not the zoning is appropriate for Lessee’s intended use, and acknowledges that past uses of the Premises may no longer be allowed.
If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same at
Lessor’s expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty within six (6) months following the Start Date, correction of that non-compliance shall be the obligation of Lessee at Lessee’s sole
cost and expense. If the Applicable Requirements are hereafter changed (as opposed to being in existence at the Start Date, which is addressed in Paragraph 6.2(e) below) so as to require during the term of this Lease the construction of an addition
to or an alteration of the Building, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Building (“Capital Expenditure”), Lessor and Lessee shall allocate the cost of such work as
follows: 
  
 (a) Subject to Paragraph 2.3(c)
below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however that if such
Capital Expenditure is required during the last two (2) years of this Lease and the cost thereof exceeds six (6) months’ Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within ten (10) days after
receipt of Lessee’s termination notice that Lessor has elected to pay the difference between the actual Cost thereof and the amount equal to six (6) months’ Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of
the Premises which requires such Capital Expenditure and deliver to Lessor written notice specifying a 

  

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termination date at least ninety (90) days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could
legally utilize the Premises without commencing such Capital Expenditure. 
  
 (b) If such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor and Lessee shall allocate the obligation
to pay for such costs pursuant to the provisions of Paragraph 7.1(c); provided, however, that if such Capital Expenditure is required during the last two years of this Lease or if Lessor reasonably determines that it is not economically feasible to
pay its share thereof, Lessor shall have the option to terminate this Lease upon ninety (90) days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within ten (10) days after receipt of Lessor’s termination notice that
Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with Interest, from Rent until Lessor’s share of
such costs have been fully paid. If Lessee is unable to finance Lessor’s share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis. Lessee shall have the
right to terminate this Lease upon thirty (30) days written notice to Lessor. 
  
 (c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered
by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modification to the Premises then, and in that event, Lessee shall be fully responsible for the cost thereof, and Lessee shall not have any right to
terminate this Lease. 
  
 2.4 Acknowledgements. Lessee
acknowledges that: (a) it has been advised by Lessor and/or Brokers to satisfy itself with respect to the condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and
compliance with Applicable Requirements), and their suitability for Lessee’s intended use; (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to
its occupancy of the Premises; and (c) neither Lessor, Lessor’s agents, nor any Broker has made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor
acknowledges that: (a) Broker has made no representations, promises or warranties concerning Lessee’s ability to honor the Lease or suitability to occupy the Premises; and (b) it is Lessor’s sole responsibility to investigate the financial
capability and/or suitability of all proposed tenants. 
  
 2.5
Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date Lessee 

  

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was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work. 
  

	3.	 	Term. 

  
 3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3. 
  
 3.2 Early Possession. If Lessee totally or partially occupies the
Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early possession. All other terms of this Lease (including, but not limited to, the obligations to pay Real Property Taxes and insurance
premiums and to maintain the Premises) shall, however, be in effect during such period. Any such early possession shall not affect the Expiration Date. 
  
 3.3 Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Lessee by the
Commencement Date. If, despite said efforts, Lessor is unable to deliver possession as agreed, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease. Lessee shall not, however, be obligated
to pay Rent or perform its other obligations until it receives possession of the Premises. If possession is not delivered within sixty (60) days after the Commencement Date, Lessee may, at its option, by notice in writing within ten (10) days after
the end of such sixty (60) day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within said ten (10) day period, Lessee’s right to cancel
shall terminate. Except as otherwise provided, if possession is not tendered to Lessee by the Start Date and Lessee does not terminate this Lease, as aforesaid, any period of rent abatement that Lessee would otherwise have enjoyed shall run from the
date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession of the Premises is not delivered
within four (4) months after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing 
  
 3.4 Lessee Compliance. Lessor shall not be required to render possession of the Premises to Lessee until Lessee complies with its obligation to
provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor’s
election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold
possession until such conditions are satisfied. 
  

	4.	 	Rent. 

  
  

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 4.1 Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease
(except for the Security Deposit) are deemed to be rent (“Rent”). 
  
 4.2 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States, without offset or deduction (except as specifically permitted in this Lease), on or before the day
on which it is due. Rent for any period during the term hereof which is for less than one (1) full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated
herein or to such other persons or place as Lessor may from time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor’s rights to the balance of such Rent, regardless of
Lessor’s endorsement of any check so stating. 
  

	5.	 	Security Deposit. 

  
 Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee’s faithful performance of its obligations under
this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or compensate Lessor for any
liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of said Security Deposit, Lessee shall within ten (10) days after written request therefor deposit monies with Lessor
sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional monies with Lessor so that the total
amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended to accommodate a material change in the business of
Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in Lessor’s reasonable judgment, to account for any increased wear and tear that the Premises may suffer as
a result thereof. If a change in control of Lessee occurs during this Lease and following such change the financial condition of Lessee is, in Lessor’s reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with
Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on said change in financial condition. Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within
fourteen (14) days after the expiration or termination of this Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent, and otherwise within thirty (30) days after the Premises have been vacated pursuant to Paragraph 7.4(c) below,
Lessor shall return that portion of the Security Deposit not used or applied by Lessor. (see Paragraph 53) 
  

	6.	 	Use. 

  

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 6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use
which is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs owners and/or occupants of, or causes damage
to neighboring properties. Lessor shall not unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the improvements on the Premises or
the mechanical or electrical systems therein, is not significantly more burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall within five (5) business days after such request give written notification of same, which notice
shall include an explanation of Lessor’s objections to the change in use. 
  
 6.2 Hazardous Substances. 
  
 (a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall mean any product, substance, or waste whose presence, use, manufacture, disposal, transportation,
or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the Premises, (ii) regulated or monitored by any
governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. HAZARDOUS SUBSTANCES shall include, but not be limited to, hydrocarbons,
petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without the express prior written
consent of Lessor and timely compliance (at Lessee’s expense) with all Applicable Requirements. “Reportable Use” shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority, and/or (iii) the
presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may
use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, so long as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or
neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefore. In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably
deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expiration or termination) of
protective modifications (such as concrete encasements) and/or increasing the Security Deposit 
  

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 (b) Duty to Inform Lessor. It Lessee knows, or has reasonable cause to believe,
that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide Lessor with a copy of any
report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance. 
  
 (c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about
the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee’s expense, take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup
of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the
Premises during the term of this Lease, by or for Lessee, or any third party. 
  
 (d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents and/or damages,
liabilities, judgments, claims, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or any third party (provided, however, that Lessee
shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties). Lessee’s obligations shall include, but not be limited to, the effects of any contamination
or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. No termination,
cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor In writing al the time of such
agreement. 
  
 (e) Lessor
Indemnification. Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which existed
as a result of Hazardous Substances on the Premises prior to the Start Date or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessor’s obligations, as and when required by the Applicable
Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. 
  
 (f) Investigations and Remediations. Lessor shall
retain the responsibility and pay for any investigations or remediation measures required by 

  

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governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to the Start Date, unless such
remediation measure is required as a result of Lessee’s use (including “Alterations”, as defined in Paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in
any such activities at the request of Lessor, including allowing Lessor and Lessor’s agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor’s investigative and remedial responsibilities.

  
 (g) Lessor Termination Option. If a
Hazardous Substance Condition occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall
continue in full force and effect, but subject to Lessors rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor’s option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as
reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds twelve (12) times the then monthly Base Rent or $100,000, whichever is
greater, give written notice to Lessee, within thirty (30) days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor’s desire to terminate this Lease as of the date sixty (60) days following
the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within ten (10) days thereafter, give written notice to Lessor of Lessee’s commitment to pay the amount by which the cost of the remediation of such
Hazardous Substance Condition exceeds an amount equal to twelve (12) times the then monthly Base Rent of $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within thirty (30) days following
such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and
provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessors notice of termination. 
  

6.3 Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee shall, at Lessee’s sole
expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessors engineers and/or consultants
which relate in any manner to the Premises, without regard to whether said requirements are now in effect or become effective after the Start Date. Lessee shall, within ten (10) days after receipt of Lessor’s written request, provide Lessor
with copies of all permits and other documents, and other information evidencing Lessee’s compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of 

  

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any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or
the Premises to comply with any Applicable Requirements. 
  
 6.4
Inspection; Compliance. Lessor and Lessors “Lender” (as defined in Paragraph 30 below) and consultants shall have the right to enter into Premises with 24-hour notice, in the case of an emergency, and otherwise at reasonable times,
for the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a contamination is found
to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspections, so long as such inspection is reasonably related to the
violation or contamination. 
  

	7.	 	Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations. 

  
 7.1 Lessee’s Obligations. 
  
 (a) In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3
(Lessee’s Compliance with Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee’s sole expense, keep the Premises, Utility Installations, and Alterations in
good order, condition and repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of
Lessee’s use, any prior use, the elements or the age of such portion of the Premises), including, but not limited to, all equipment or facilities, such as plumbing, heating, ventilating, air-conditioning, electrical, lighting facilities,
boilers, pressure vessels, fire protection system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks
and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices, specifically including the procurement and maintenance of the
service contracts required by Paragraph 7.1(b) below. Lessee’s obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and
state of repair. Lessee shall, during the term of this Lease, keep the exterior appearance of the Building in a first-class condition consistent with the exterior appearance of other similar facilities of comparable age and size in the vicinity,
including, when necessary, the exterior repainting of the Building. 
  
 (b) Service Contracts. Lessee shall, at Lessee’s sole expense, procure and maintain contracts, with copies to Lessor, in customary form and substance for, and with contractors specializing and experienced
in the maintenance of the following 

  

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equipment and improvements, if any, if and when installed or the Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire extinguishing
systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof covering and drains, (vi) driveways and parking lots, (vii) clarifiers (viii) basic utility feed to the perimeter of the Building, and (ix) any
other equipment, if reasonably required by Lessor. 
  
 (c) Replacement. Subject to Lessee’s indemnification of Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee of liability resulting from Lessee’s failure to exercise and perform good maintenance
practices, if the Basic Elements described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such Basic Elements, then such Basic Elements shall be replaced by Lessor, and the cost thereof
shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such
replacement by a fraction, the numerator of which is one, and the denominator of which is the number of months of the useful life of such replacement as such useful life is specified pursuant to Federal income tax regulations or guidelines for
depreciation thereof (including interest on the unamortized balance as is then commercially reasonable in the judgment of Lessor’s accountants), with Lessee reserving the right to prepay its obligation at any time. 
  
 7.2 Lessors Obligations. Subject to the provisions of Paragraphs 2.2
(Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of
which obligations are intended to be that of the Lessee. It is the intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises, and they expressly waive the
benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease. 
  
 7.3 Utility Installations; Trade Fixtures; Alterations. 
  

(a) Definitions; Consent Required. The term “Utility Installations” refers to all floor and window coverings,
air lines, power panels, electrical distribution, security and fire protection systems, communication systems, lighting Fixtures, HVAC equipment, plumbing, and fencing in or on the Premises. The term “Trade Fixtures” shall mean
Lessee’s machinery and equipment that can be removed without doing material damage to the Premises. The term “Alterations” shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures,
whether by addition or deletion. “Lessee Owned Alterations and/or Utility Installations” are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a). Lessee
shall not make any Alterations or Utility Installations to the Premises without Lessor’s prior written consent. Lessee may, however, make non-structural Utility Installations to the interior of the Premises 

  

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(excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating
or removing the roof or any existing walls, and the simulative cost thereof during this Lease as extended does not exceed $50,000 in the aggregate or $10,000 in any one year. 
  
 (b) Consent. Any Alterations or Utility Installations that Lessee shall desire to make and which
require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee’s: (i) acquiring all applicable governmental permits (ii) furnishing Lessor with copies of both
the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility Installations
shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For work which costs an amount equal to the greater of one month’s Base
Rent, or $10,000. Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to one and one-half times the estimated cost of such Alteration or Utility Installation and/or upon Lessee’s posting an
additional Security Deposit with Lessor. 
  
 (c)
Indemnification. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic’s or
materialmen’s lien against the Premises or any interest therein. Lessee shall give Lessor not less than ten (10) days’ notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post
notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such
adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to one and one-half times the amount of such contested lien, claim or demand, indemnifying
Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessor’s attorneys’ fees and costs. 
  
 7.4 Ownership; Removal; Surrender; and Restoration. 
  
 (a) Ownership. Subject to Lessor’s right to require removal or elect ownership as hereinafter provided, all Alterations and
Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility
Installations. Unless otherwise instructed per Paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the
Premises. 
  

 12 

 (b) Removal. By delivery to Lessee of written notice from Lessor not earlier than
ninety (90) and not later than thirty (30) days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease. Lessor may
require the removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent 
  
 (c) Surrender/Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with all of
the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. “Ordinary wear and tear” shall not include any damage or
deterioration that would have been prevented by good maintenance practice. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee Owned Alterations and/or Utility Installations, furnishings,
and equipment as well as the removal of any storage tank installed by or for Lessee, and the removal, replacement, or remediation of any soil, material or groundwater contaminated by Lessee. Trade Fixtures shall remain the property of Lessee and
shall be removed by Lessee. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below. 
  

	8.	 	Insurance; Indemnity. 

  
 8.1 Payment For Insurance. Lessee shall pay for all insurance required under Paragraph 8 except to the extent of the cost attributable to liability
insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be prorated to correspond to the Lease term. Payment shall be made by
Lessee to Lessor within ten (10) days following receipt of an invoice. 
  
 8.2 Liability Insurance. 
  
 (a)
Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability Policy of Insurance protecting Lessee and Lessor against claims for bodily injury, personal injury and properly damage based upon or arising out of the
ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $2,000,000 per occurrence with an
“Additional Insured-Managers or Lessors of Promises Endorsement” and contain the “Amendment of the Pollution Exclusion Endorsement” for damage caused by heat, smoke or fumes from a hostile fire. The Policy shall not
contain any infra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an ‘insured contract’ for the performance of Lessee’s indemnity obligations under
this Lease. The limits of said insurance shall not, 

  

 13 

 
however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. All insurance carried by Lessee shall be primary to and not
contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only. 
  
 (b) Carried by Lessor. Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not in lieu
of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein. 
  
 8.3 Property Insurance – Building, Improvements and Rental Value. 
  
 (a) Building and Improvements. The insuring Party shall obtain and keep in force a policy or policies
in the name of Lessor, with loss payable to Lessor, any groundlessor, and to any Lender(s) insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full replacement cost of the Premises, as the same shall exist
from time to time, or the amount required by any Lenders, but in no event more than commercially reasonable and available insurable value thereof. If Lessor is the Insuring Party, however, Lessee Owned Alterations and Utility Installations, Trade
Fixtures, and Lessee’s personal property shall be insured by Lessee under Paragraph 8.4 rather than by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical
loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of
any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the
annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a
deductible clause, the deductible amount shall not exceed $1,000 per occurrence and Lessee shall be liable for such deductible amount in the event of an Insured Loss. 
  
 (b) Rental Value. The Insuring Party shall obtain and keep in force a policy or policies in the name
of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one (1) year. Said insurance shall provide that in the event the Lease is terminated BY reason of an insured loss, the period of indemnity for such coverage
shall be extended beyond the date of the completion of repairs or replacement of the Premises, to provide for one full year’s loss of Rent from the date of any such loss. Said insurance shall contain an agreed valuation provision in lieu of any
coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Lessee, for the next twelve (12) month period. Lessee shall be liable for any deductible amount in the event of such loss.

  

 14 

 (c) Adjacent Premises. If the Premises are part of a larger building, or of a
group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings if said increase is caused by Lessee’s acts, omissions, use or
occupancy of the Premises. 
  
 8.4 Lessee’s
Property/Business Interruption Insurance. 
  
 (a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee’s personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost
coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee
shall provide Lessor with written evidence that such insurance is in force. 
  
 (b) Business Interruption. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable to all perils
commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such perils. 
  
 (c) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance
specified herein are adequate to cover Lessee’s property, business operations or obligations under this Lease. 
  
 8.5 Insurance Policies. Insurance required herein shall be by companies duly licensed or admitted to transact business in the state where the
Premises are located, and maintaining during the policy term a “General Policyholders Rating” of at least B+, V, as set forth in the most current issue of “Best’s Insurance Guide”, or such other rating as may be required by
a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such insurance or certificates evidencing the
existence and amounts of the required insurance. No such policy shall be cancelable or subject to modification except after thirty (30) days prior written notice to Lessor. Lessee shall, at least thirty (30) days prior to the expiration of such
policies, furnish Lessor with evidence of renewals or “insurance binders” evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand.
Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but
shall not be required to, procure and maintain the same. 
  

 15 

 8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each
hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured against herein. The effect of such
releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such
companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not invalidated thereby. 
  
 8.7 Indemnity. Except for Lessor’s gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the
Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or
liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the
same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemnified. 
  
 8.8 Exemption of Lessor from Liability. Lessor shall not be liable for
injury or damage to the person or goods, wares, merchandise or other property of Lessee. Lessee’s employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results
from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or
damage results from conditions arising upon the Premises or upon other portions of the Building of which the Premises are a part, or from other sources or places. Lessor shall not be liable for any damages arising from any act or neglect of any
other tenant of Lessor. Notwithstanding Lessor’s negligence or breach of this Lease, Lessor shall under no circumstances be liable for injury to Lessee’s business or for any loss of income or profit therefrom except for Lessor’s
gross negligence or willful misconduct. 
  

	9.	 	Damage or Destruction. 

  
 9.1 Definitions. 
  
 (a) “Premises Partial Damage” shall mean damage or destruction to the improvements on the Premises, other than Lessee
Owned Alterations and Utility Installations, which can reasonably be repaired in six (6) months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within thirty (30) days from the date of the damage or
destruction as to whether or not the damage is Partial or Total. 
  

 16 

 (b) “Premises Total Destruction” shall mean damage or destruction to the
Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in six (6) months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within thirty
(30) days from the date of the damage or destruction as to whether or not the damage is Partial or Total. 
  
 (c) “Insured Loss” shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations
and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved. 
  
 (d) “Replacement Cost” shall mean the cost
to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and
without deduction for depreciation. 
  
 (e)
“Hazardous Substance Condition” shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises. 

 
 9.2 Partial Damage – Insured Loss. If a Premises Partial
Damage that is an Insured Loss occurs, then Lessor shall, at Lessor’s expense, repair such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall
continue in full force and effect; provided, however, that Lessee shall, at Lessor’s election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall make any
applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring
Party shall promptly contribute the shortage in proceeds (except as to the deductible which is Lessee’s responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of
the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of
the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within ten (10) days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate
assurance thereof within said ten (10) day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full torte and effect. If such funds or assurance are not received.
Lessor may nevertheless elect by written notice to Lessee within ten (10) days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall 

  

 17 

 
remain in full force and effect, or have this Lease terminate thirty (30) days thereafter. Lessee shall not be entitled to reimbursement of any funds
contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such
insurance shall be made available for the repairs if made by either Party. 
  
 9.3 Partial Damage – Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at
Lessee’s expense), Lessor may either: (i) repair such damage as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to
Lessee within thirty (30) days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective sixty (60) days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee
shall have the right within ten (10) days after receipt of the termination notice to give written notice to Lessor of Lessee’s commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with
said funds or satisfactory assurance thereof within thirty (30) days after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after
the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice. 
  
 9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease
shall terminate sixty (60) days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor’s damages from Lessee, except as provided
in Paragraph 8.6. 
  
 9.5 Damage Near End of Term. If at
any time during the last six (6) months of this Lease there is damage for which the cost to repair exceeds one (1) month’s Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective sixty (60) days following the date
of occurrence of such damage by giving a written termination notice to Lessee within thirty (30) days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease
or to purchase the Premises, then Lessee may preserve this Lease by: (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of
(i) the date which is ten days after Lessee’s receipt of Lessor’s written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period
and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, 

  

 18 

 
Lessor shall, at Lessor’s commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force
and effect. It Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee’s option shall be extinguished. 

 
 9.6 Abatement of Rent; Lessee’s Remedies. 
  
 (a) Abatement. In the event of Premises Partial
Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall
be abated in proportion to the degree to which Lessee’s use of the Premises is impaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor
shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein. 
  
 (b) Remedies. If Lessor shall be obligated to repair or restore the Premises and does not commence, in a substantial and meaningful
way, such repair or restoration within ninety (90) days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual
notice of Lessee’s election to terminate this Lease on a date not less than sixty (60) days following the giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within thirty (30) days thereafter,
this Lease shall terminate as of the date specified in said notice. If the repair or restoration Is commenced within said thirty (30) days, this Lease shall continue in full force and effect. “Commence” shall mean either the
unconditional authorization of the preparation of the required plans or the beginning of the actual work on the Premises, whichever first occurs. 
  
 9.7 Termination – Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall
be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s Security Deposit as has not been, or is not then required to be, used by Lessor.

  
 9.8 Waive Statutes. Lessor and Lessee agree that the
terms of this Lease shall govern the effect of any damage to or destruction of the Premises with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith.

  

	10.	 	Real Property Taxes. 

  

 19 

 10.1 Definition of “Real Property Taxes.” As used herein, the term “Real
Property Taxes” shall include any form of assessment: real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed
upon or levied against any legal or equitable interest of Lessor in the Premises, Lessor’s right to other income therefrom, and/or Lessor’s business of leasing, by any authority having the direct or Indirect power to lax and where the
funds are generated with reference to the Building address and where the proceeds so generated are to be applied by the city, county or other local taxing authority of a jurisdiction within which the Premises are located. The term “Real
Property Taxes” shall also include any tax, fee, levy, assessment or charge, or any increase therein, imposed by reason of events occurring during the term of this Lease. Including but not limited to, a change in the ownership of the
Premises. 
  
 10.2 
  
 (a) Payment of Taxes. Lessee shall pay the Real
Property Taxes applicable to the Premises during the term of this Lease. Subject to Paragraph 10.2(b), all such payments shall be made at least ten (10) days prior to any delinquency date. Lessee shall promptly furnish Lessor with satisfactory
evidence that such taxes have been paid. If any such taxes shall cover any period of time prior to or after the expiration or termination of this Lease, Lessee’s share of such taxes shall be prorated to cover only that portion of the lax bill
applicable to the period that this Lease is in effect, and Lessor shall reimburse Lessee for any overpayment. If Lessee shall fail to pay any required Real Property Taxes, Lessor shall have the right to pay the same, and Lessee shall reimburse
Lessor therefor upon demand. 
  
 (b) Advance
Payment. In the event Lessee incurs a late charge on any Rent payment, Lessor may, at Lessor’s option, estimate the current Real Property Taxes and require that such taxes be paid in advance to Lessor by Lessee, either: (i) in a lump sum
amount equal to the installment due, at least twenty (20) days prior to the applicable delinquency date, or (ii) monthly in advance with the payment of the Base Rent. If Lessor elects to require payment monthly in advance, the monthly payment shall
be an amount equal to the amount of the estimated installment of taxes divided by the number of months remaining before the month in which said installment becomes delinquent. When the actual amount of the applicable tax bill is known, the amount of
such equal monthly advance payments shall be adjusted as required to provide the funds needed to pay the applicable taxes. If the amount collected by Lessor is insufficient to pay such Real Property Taxes when due, Lessee shall pay Lessor, upon
demand, such additional sums as are necessary to pay such obligations. All monies paid to Lessor under this Paragraph may be intermingled with other monies of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance
of its obligations under this Lease, then any balance of funds paid to Lessor under the provisions of this Paragraph may, at the option of Lessor, be treated as an additional Security Deposit. 
  

 20 

 10.3 Joint Assessment. If the Premises are not separately assessed, Lessee’s liability shall
be an equitable proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be conclusively determined by Lessor from the respective valuations assigned in the
assessor’s work sheets or such other information as may be reasonably available. 
  
 10.4 Personal Property Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all
personal property of Lessee. When possible, Lessee shall cause such property to be assessed and billed separately from the real property of Lessor. If any of Lessee’s said personal property shall be assessed with Lessor’s real property,
Lessee shall pay Lessor the taxes attributable to Lessee’s property within ten (10) days after receipt of a written statement. 
  

	11.	 	Utilities 

  
 Lessee shall pay for all water, gas, heat, light power, telephone, trash disposal and other utilities and services supplied to the Premises, together with
any taxes thereon. If any such services are not separately metered to Lessee, Lessee shall pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered. 
  

	12.	 	Assignment and Subletting. 

  
 12.1 Lessor’s Consent Required. 
  
 (a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, “assign or
assignment”) or sublet all or any part of Lessee’s Interest in this Lease or in the Premises without Lessor’s prior written consent. 
  
 (b) An assignment or subletting without consent shall, at Lessor’s option, be a Default curable after notice per Paragraph 13.1(c),
or a noncurable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved assignment or subletting as a noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon thirty (30) days
written notice, increase the monthly Base Rent to one hundred ten percent (110%) of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by
Lessee shall be subject to similar adjustment to one hundred ten percent (110%) of the price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to One Hundred
Ten Percent (110%) of the scheduled adjusted rent. 
  
 (c) Lessee’s remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or injunctive relief. 
  
 12.2 Terms and Conditions Applicable to Assignment and Subletting. 
  

 21 

 (a) Regardless of Lessor’s consent, any assignment or subletting shall not: (i) be
effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease; (ii) release Lessee of any obligations hereunder; or (iii) alter the primary liability of Lessee for the payment of Rent or
for the performance of any other obligations to be performed by Lessee. 
  
 (b) Lessor may accept Rent or performance of Lessee’s obligations from any person other than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of such
assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor’s right to exercise its remedies for Lessee’s Default or Breach. 
  
 (c) Lessor’s consent to any assignment or subletting shall not constitute a consent to any subsequent
assignment or subletting. 
  
 (d) In the event of
any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee’s obligations under this Lease, including any assignee or sublessee, without first exhausting
Lessor’s remedies against any other person or entity responsible therefore to Lessor, or any security held by Lessor. 
  
 (e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor’s
determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any, together with a fee not
to exceed $500.00 applicable to the portion of the Premises which is the subject of the proposed assignment or sublease, consideration for Lessor’s reasonable legal expenses for considering and processing said request. Lessee agrees to provide
Lessor with such other or additional information and/or documentation as may be reasonably requested. 
  
 (f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment or entering into such sublease, be
deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assignment or sublease, other than such obligations as are
contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing. 
  
 12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by Lessee of all or
any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein: 
  

 22 

 (a) Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all
Rent payable on any sublease, and Lessor may collect such Rent and apply same toward Lessee’s obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee’s obligations, Lessee may collect
said Rent. Lessor shall not, by reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the subleases for any failure of Lessee to perform and comply with any of Lessee’s
obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee’s obligations under this Lease, to pay to
Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim
from Lessee to the contrary. 
  
 (b) In the event
of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of
such sublease; provided, however, Lessor shall not be liable for any prepaid rents of security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor. 
  
 (c) Any matter requiring the consent of the sublessor under
a sublease shall also require the consent of Lessor. 
  
 (d) No sublessee shall further assign or sublet all or any part of the Premises without Lessor’s prior written consent. 
  
 (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the
Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. 
  
 12.4 Permitted Assignment and Subletting. 
  
 (a) Subletting. Notwithstanding anything to the contrary
contained in Section 12.1 or 12.2, Lessee may sublet the Premises or any part thereof to a subsidiary, affiliate, successor or parent entity of Lessee without the necessity of obtaining the consent of Lessor. In the event that Lessee sublets the
Premises to an affiliate, successor or parent entity in accordance with this Section 12.4(a), Lessee shall remain primarily liable with respect to its obligations under this Lease. The provisions of Section 12.3(a) shall not apply to a sublease
under this Section 12.4(a). 
  

 23 

 (b) Assignment. Notwithstanding anything to the contrary contained in Section 12.1 or
12.2, Lessee shall have the right to assign this Lease and its rights and obligations hereunder, without the necessity of obtaining the consent of Lessor, to a successor to Lessee by the merger, consolidation, non-bankruptcy reorganization or
governmental action or other succession transaction, but only if such successor immediately following the conclusion of all of the transactions undertaken in connection with such succession transaction, has a tangible net worth equal to, or greater
than, the tangible net worth of Lessee shown upon the financial statements of Lessee delivered to Lessor on or before the Commencement Date as evidence of the financial condition of Lessee. Upon assignment by Lessee to a successor having all such
characteristics, and the assumption by such successor for the express benefit of Lesser of all of the obligations of Lessee pursuant to this Lease by an instrument reasonably satisfactory in form and substance to Lessor, Lessee will be relieved of
all liabilities hereunder which are so assumed by such successor. The right of Lessee to make such an assignment without the consent of Landlord shall be conditioned upon there not existing hereunder at the time of such assignment any default or
breach On the part of Lessee under this Lease. 
  

	13.	 	Default; Breach; Remedies. 

  
 13.1 Default; Breach. A “Default” is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions
or rules under this Lease. A “Breach” is defined as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period: 
  
 (a) The abandonment of the Premises; or the vacating of the
Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described In Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential
vandalism. 
  
 (b) The failure of Lessee to make
any payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surely bond, or to fulfill any obligation under this Lease which
endangers or threatens life or property, where such failure continues for a period of three (3) business days following written notice to Lessee. 
  
 (c) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service
contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) a Estoppel Certificate, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 42
(easements), or (viii) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of ten (10) days following written notice to Lessee 

 

 24 

 (d) A Default by Lessee as to the terms, covenants, conditions or provisions of this
Lease, or of the rules adopted under paragraph 40 hereof, other than those described in subparagraphs 13.1(a), (b) or (c), above, where such Default continues for a period of thirty (30) days after written notice; provided, however, that if the
nature of Lessee’s Default is such that more than thirty (30) days are reasonably required for its cure, then it shall not be deemed to be a Breach it Lessee commences such cure within said thirty (30) day period and thereafter diligently
prosecutes such cure to completion. 
  
 (e) The
occurrence of any of the following events: (i) the making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a “debtor” as defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the
case of a petition filed against Lessee, the same is dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s
interest in this Lease, where possession is not restored to Lessee within thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest
in this Lease, where such seizure is not discharged within thirty (30) days; provided, however, in the event that any provision of this subparagraph 13.1(e) is contrary to any applicable law, such provision shall be of no force or effect and not
affect the validity of the remaining provisions. 
  
 (f) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false. 
  
 (g) If the performance of Lessee’s obligations under this Lease is guaranteed: (i) the death of a Guarantor; (ii) the termination of
a Guarantor’s liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor’s becoming insolvent or the subject of a bankruptcy filing; (iv) a Guarantor’s refusal to honor the
guaranty; or (v) a Guarantor’s breach of its guaranty obligation on an anticipatory basis, and Lessee’s failure, within sixty (60) days following written notice of any such event, to provide written alternative assurance or security,
which, when coupled will the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease. 
  
 13.2 Remedies. If Lessee fails to perform any of its affirmative
duties or obligations, within ten (10) days after written notice (or in case of an emergency, without notice). Lessor may, at its option, perform such duly or obligation on Lessee’s behalf, including but not limited to the obtaining of
reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. The costs and expenses of any such performance by Lessor shall be due and payable by Lessee upon receipt of invoice therefor. If any check given to Lessor
by Lessee shall not be honored by the bank upon which it is drawn, lessor, al its option, may require all future payments to be made by Lessee to be by cashier’s check. In the event of a Breach, Lessor may, with or without 

  

 25 

 
further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach: 
  
 (a) Terminate Lessee’s right to possession of the
Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (f) the unpaid Rent which had been earned at the time
of termination; (if) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have been
reasonably avoided; (fit) the worth al the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided: and (iv)
any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom,
including but not limited to the cost of recovering possession of the Premises, expenses of retailing, including necessary renovation and alteration of the Premises, reasonable attorneys’ fees. and that portion of any leasing commission paid by
Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at
the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent (1%). Efforts by Lessor to mitigate damages caused by Lessee’s Breach of this Lease shall not waive
Lessor’s right to recover damages under Paragraph 12. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are
recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, a to perform or quit given
to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1 In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure
of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute. 
  
 (b) Continue the Lease and Lessee’s right to possession
and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor’s interests, shall not
constitute a termination of the Lessee’s right to possession. 
  

 26 

 (c) Pursue any other remedy now or hereafter available under the laws or judicial
decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the termination of Lessee’s right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as
to matters occurring or accruing during the term hereof or by reason of Lessee’s occupancy of the Premises. 
  
 13.3 Inducement Recapture. Any agreement for free or abated rent or other charges, or for the giving or paying by Lessor to or for Lessee of any
cash or other bonus, inducement or consideration for Lessee’s entering into this Lease, all of which concessions are hereinafter referred to as “Inducement Provisions,” shall be deemed conditioned upon Lessee’s full and faithful
performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further force or effect, and any rent, other
charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The
acceptance by Lessor of Rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing by Lessor at the time of such
acceptance. 
  
 13.4 Late Charges. Lessee hereby
acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and
accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor within ten (10) We- (b) days after such amount shall be due, then, without any requirement for notice to
Lessee, except that If Lessor has not received the rent within five (5) days, Lessor shall Inform Lessee via written notice, Lessee shall pay to Lessor a one-time late charge equal to ten percent (10%) of each such overdue amount. The Parties hereby
agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee’s Default or Breach
with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. In the event that a late charge Is payable hereunder, whether or not collected, for three (3) consecutive installments of Base
Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor’s option, become due and payable quarterly in advance. 
  

13.5 Interest. Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due as to scheduled payments
(such as Base Rent) or within thirty (30) days following the date on which it was due for non-scheduled 

  

 27 

 
payment, shall bear interest from the date when due, as to scheduled payments, or the thirty-first (31st) day after it was due as to non-scheduled payments.
The interest (“Interest”) charged shall be equal to the prime rate reported in the Walt Street Journal as published closest prior to the date when due plus four percent (4%), but shall not exceed the maximum rate allowed by law. Interest
is payable in addition to the potential late charge provided for in Paragraph 13.4. 
  
 13.6 Breach by Lessor. 
  
 (a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph,
a reasonable time shall in no event be less than thirty (30) days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for such purpose, of written notice specifying wherein such obligation of
Lessor has not been performed; provided, however, that if the nature of Lessor’s obligation is such that more than thirty (30) days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced
within such thirty (30) day period and thereafter diligently pursued to completion. 
  
 13.7 Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender cures said breach within thirty (30) days after receipt of said notice, or if having commenced said cure they do not
diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee’s expense and offset from Rent an amount equal to the greater of one month’s Base Rent or the Security Deposit, and to pay an excess of such expense
under protest, reserving Lessee’s right to reimbursement from Lessor. Lessee shall document the cost of said cure and supply said documentation to Lessor 
  

	14.	 	Condemnation. 

  
 If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively
“Condemnation”), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than ten percent (10%) of any building portion of the Premises, or more
than twenty-five percent (25I) of the land area portion of the Premises not occupied by any building, is taken by Condemnation, Lessee may, at Lessee’s option, to be exercised in writing within ten (10) days after Lessor shall have given Lessee
written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not
terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the 

  

 28 

 
Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be made as compensation
for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation for Lessee’s relocation expenses, loss of business goodwill and/or Trade
Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the
property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such
Condemnation. 
  

	15.	 	Brokers’ Fee. 

  
 15.1 Additional Commission. In addition to the payments owed pursuant to Paragraph 1.10 above, and unless Lessor and the Brokers otherwise agree in
writing, Lessor agrees that: (a) if Lessee exercises any Option, (b) if Lessee acquires any rights to the Premises or other premises owned by Lessor and located within the same Project, if any, within which the Premises is located, (c) if Lessee
remains in possession of the Premises, with the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent is increased, whether by agreement or operation of an escalation clause herein, then, Lessor shall pay Brokers a fee in
accordance with the schedule of said Brokers in effect at the time of the execution of this Lease. 
  
 15.2 Assumption of Obligations. Any buyer or transferee of Lessor’s interest in this Lease shall be deemed to have assumed Lessor’s
obligation hereunder. Each Broker shall be a third party beneficiary of the provisions of Paragraphs 1.10, 15, 22 and 31. If Lessor fails to pay to a Broker any amounts due as and for commissions pertaining to this Lease when due, then such amounts
shall accrue Interest. In addition, if Lessor fails to pay any amounts to Lessee’s Broker when due, Lessee’s Broker may send written notice to Lessor and Lessee of such failure and if Lessor fails to pay such amounts within ten (10) days
after said notice. Lessee shall pay said monies to its Broker and offset such amounts against Rent. In addition, Lessee’s Broker shall be deemed to be a third party beneficiary of any commission agreement entered into by and/or between Lessor
and Lessor’s Broker. 
  
 15.3 Representations and
Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder (other than the Brokers, if any) in connection with this Lease, and that no one
other than said named Brokers is entitled to any commission or finder’s fee in connection herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or
charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party, 

  

 29 

 
including any costs, expenses, and/or attorneys’ fees reasonably incurred with respect thereto. 
  

	16.	 	Estoppel Certificates. 

  
 (a) Each Party (as “Responding Party”) shall within ten (10) days after written notice from the other Party (the
“Requesting Party”) execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current “Estoppel Certificate” form published by the American Industrial Real
Estate Association, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party. 
  
 (b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such ten day period, the Requesting Party may
execute an Estoppel Certificate stating that: (f) the Lease is in full force and effect without modification except as may be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting Party’s performance, and
(iii) if Lessor is the Requesting Party, not more than one month’s Rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party’s Estoppel Certificate, and the Responding Party shall be
estopped from denying the truth of the facts contained in said Certificate. 
  
 (c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such financial statements as
may be reasonably required by such tender or purchaser, including, but not limited to, Lessee’s financial statements for the past three (3) years. All such financial statements shall be received by Lessor and such lender or purchaser in
confidence and shall be used only for the purposes herein set forth. 
  

	17.	 	Definition of Lessor. 

  
 The term “Lessor” as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is
a sublease, of the Lessee’s interest in the prior lease. In the event of a transfer of Lessor’s title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (In cash or by credit) any unused Security
Deposit held by Lessor. Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants
under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined. Notwithstanding the
above, and subject to the provisions of Paragraph 20 below, the original Lessor under this Lease, and all subsequent holders of the Lessor’s interest in this Lease shall remain liable and 

  

 30 

 
responsible with regard to the potential duties and liabilities of Lessor pertaining to Hazardous Substances as outlined in Paragraph 6 above. 
  

	18.	 	Severability. 

  
 The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other
provision hereof. 
  

	19.	 	Days. 

  
 Unless otherwise specifically indicated to the contrary, the word “days” as used In this Lease shall mean and refer to calendar days.

  

	20.	 	Limitation on Liability. 

  
 Subject to the provisions of Paragraph 17 above, the obligations of Lessor under this Lease shall not constitute personal obligations of Lessor, the
individual partners of Lessor or its or their individual partners, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this
Lease, and shall not seek recourse against the individual partners of Lessor, or its or their individual partners, directors, officers or shareholders, or any of their personal assets for such satisfaction. 
  

	21.	 	Time of Essence. 

  
 Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease 
  

	22.	 	No Prior or Other Agreements; Broker Disclaimer. 

  
 This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or
understanding shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party
to this Lease and as to the nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. The liability (including court costs and Attorneys’
fees), of any Broker with respect to negotiation, execution, delivery or performance by either Lessor or Lessee under this Lease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to
this Lease; provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable to any gross negligence or willful misconduct of such Broker. 
  

	23.	 	Notices. 

  

 31 

 23.1 Notice Requirements. All notices required or permitted by this Lease shall be in writing and
may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, and shall be deemed sufficiently given if served in a
manner specified in this Paragraph 23. The addresses noted adjacent to a Party’s signature on this Lease shall be that Party’s address for delivery or mailing of notices. Either Party may by written notice to the other specify a different
address for notice, except that upon Lessee’s taking possession of the Premises, the Premises shall constitute Lessee’s address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such
addresses as Lessor may from time to time hereafter designate in writing. 
  
 23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the
postmark thereon. If sent by regular mail the notice shall be deemed given forty-eight (48) hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier
that guarantee next day delivery shall be deemed given twenty-four (24) hours after delivery of the same to the Postal Service or courier. Notices transmitted by facsimile transmission or similar means shall be deemed delivered upon telephone
confirmation of receipt, provided a copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day. 
  

	24.	 	Waivers. 

  
 No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or
condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of
Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. The acceptance of Rent by Lessor shall not be
a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of monies or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such
statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. 
  

	25.	 	Recording. 

  
 Either Lessor or Lessee shall, upon request of the other, execute. acknowledge and deliver to the other a short form memorandum of this Lease for
recording purposes. 

  

 32 

 
The Party requesting recordation shall be responsible for payment of any fees applicable thereto. 
  

	26.	 	No Right To Holdover. 

  
 Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this. Lease. In the event that Lessee
holds over, then the Base Rent shall be increased to one hundred fifty percent (1501) of the Base Rent applicable during the month immediately preceding the expiration or termination. Nothing contained herein shall be construed as consent by Lessor
to any holding over by Lessee. 
  

	27.	 	Cumulative Remedies. 

  
 No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

  

	28.	 	Covenants and Conditions; Construction of Agreement. 

  
 All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions. In construing this Lease, all headings and titles
are for the convenience of the Parties only and shall not be considered a part of this Lease. 
  
 Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the Parties but rather according to its fair meaning as a whole, as if
both Parties had prepared it. 
  

	29.	 	Binding Effect; Choice of Law. 

  
 This Lease shall be binding upon the parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the
Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located. 
  

	30.	 	Subordination; Attornment; Non-Disturbance. 

  
 30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or
other hypothecation or security device (collectively, “Security Device”), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Lessee
agrees that the holders of any such Security Devices (in this Lease together referred to as “Lessor’s Lender”) shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to
have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease 

  

 33 

 
and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof. 

 
 30.2 Attornment. Subject to the non-disturbance provisions of
Paragraph 30.3, Lessee agrees to attorn to a Lender or any other party who acquires ownership of the Premises by reason of a foreclosure of a Security Device, and that in the event of such foreclosure, such new owner shall not: (i) be liable for any
act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (ii) be subject to any offsets or defenses which Lessee might have against any prior lessor; or (Iii) be bound by prepayment of more than one
(1) month’s rent. 
  
 30.3 Non-Disturbance. With
respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee’s subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a “Non-Disturbance
Agreement”) from the Lender which Non-Disturbance Agreement provides that Lessee’s possession of the Premises, and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach
hereof and attorns to the record owner of the Premises. Further, within sixty (60) days after the execution of this Lease, Lessor shall use its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing
Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within said sixty (60) days, then Lessee may, at Lessee’s option, directly contact Lessor’s lender and attempt to
negotiate for the execution and delivery of a Non-Disturbance Agreement. 
  
 30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without the execution of any further documents: provided, however, that, upon written request from Lessor or a Lender in
connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to separately document any subordination, attornment and/or Non-Disturbance Agreement provided for
herein. 
  

	31.	 	Attorneys’ Fees. 

  
 If any Party or Broker brings an action or proceeding involving the Premises to enforce the terms hereof or to declare rights hereunder, the Prevailing
Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys’ fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding
is pursued to decision or judgment. The term, “Prevailing Party” shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement,
judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys’ fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys’ fees

  

 34 

 
reasonably incurred. In addition, Lessor shall be entitled to attorneys’ fees, costs and expenses incurred in the preparation and service of notices of
Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach. 
  

	32.	 	Lessor’s Access; Showing Premises; Repairs. 

  
 Lessor and Lessor’s agents shall have the right to enter the Premises at any time, in the case of an emergency and otherwise at reasonable times for
the purpose of showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary. All such activities shall be without abatement of rent or
liability to Lessee. Lessor may at any time place on the Premises any ordinary “For Sale” signs and Lessor may during the last six (6) months of the term hereof place on the Premises any ordinary “For Lease” signs.
Lessee may at any time place on or about the Premises any ordinary “For Sublease” sign. 
  

	33.	 	Auctions. 

  
 Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor’s prior written consent. Lessor shall not be
obligated to exercise any standard of reasonableness in determining whether to permit an auction. 
  

	34.	 	Signs. 

  
 Except for ordinary “For Sublease” signs, Lessee shall not place any sign upon the Premises without Lessor’s prior written consent. All
signs must comply with all Applicable Requirements. 
  

	35.	 	Termination; Merger. 

  
 Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or
cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies.
Lessor’s failure within ten (10) days following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor’s election to have such event constitute the termination of such
interest. 
  

	36.	 	Consents. 

  
 Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party, such consent shall not
be unreasonably withheld or delayed. Lessor’s actual reasonable costs and expenses not to exceed 

  

 35 

 
$5,000.00 per occurrence (including, but not limned to, architects’, attorneys’, engineers’ and other consultants’ fees) incurred In the
consideration of, or response to, a request by Lessee for any Lessor consent, including, but not limited to, consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice
and supporting documentation therefor. Lessor’s consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any then
existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessor’s consent shall not preclude the imposition by Lessor
at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees with any determination made by the other hereunder
and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within ten (10) business days following such request. 
  

	37.	 	Guarantor. 

  
 37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published by the American Industrial Real Estate
Association, and each such Guarantor shall have the same obligations as Lessee under this Lease. 
  
 37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution
of the guaranty, including the authority of the party signing on Guarantor’s behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such
guaranty, (b) current financial statements, (c) a Tenancy Statement, or (d) written confirmation that the guaranty is still in effect. 
  

	38.	 	Quiet Possession. 

  
 Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee’s part to be observed and
performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof. 
  

	39.	 	Options. 

  
 39.1 Definition. “Option” shall mean: (a) the right to extend the term of or renew this Lease or to extend or renew any lease that Lessee
has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase or the right of first refusal to purchase the Premises or other property of Lessor.

  

 36 

 39.2 Options Personal To Original Lessee. Each Option granted to Lessee in this Lease is personal
to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no
intention of thereafter assigning or subletting. 
  
 39.3
Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised. 
  
 39.4 Effect of Default on Options. 
  
 (a) Lessee shall have no right to exercise an Option: (i)
during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time
Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given three (3) or more notices of separate Default, whether or not the Defaults are cured, during the twelve (12) month period immediately preceding the exercise of the
Option. 
  
 (b) The period of time within which
an Option may be exercised shall not be extended or enlarged by reason of Lessee’s inability to exercise an Option because of the provisions of Paragraph 39.4(a). 
  
 (c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee’s due and
timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term, (i) Lessee fails to pay Rent for a period of thirty (30) days after such Rent becomes due (without any necessity of Lessor to give notice
thereof), (ii) Lessor gives to Lessee three (3) or more notices of separate Default during any twelve (12) month period, whether or not the Defaults are cured, or (iii) if Lessee commits a Breach of this Lease. 
  

	41.	 	Security Measures. 

  
 Lessee hereby acknowledges that the rental payable to Lessor hereunder does not include the cost of guard service or other security measures, and that
Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties. 
  

	42.	 	Reservations. 

  
 Lessor reserves to itself the fight, from time to time, to grant, without the consent or joinder of Lessee, such easements, rights and dedications that
Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements, 

  

 37 

 
rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents
reasonably requested by Lessor to effectuate any such easement rights, dedication, map or restrictions. 
  

	43.	 	Performance Under Protest. 

  
 If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against
whom the obligation to pay the money is asserted shall have the right to make payment “under protest” and such payment shall not be regarded as a voluntary payment and there shall survive the right on the pan of said Party to institute
suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally
required to pay. 
  

	44.	 	Authority. 

  
 If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on behalf
of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each Party shall, within thirty (30) days after request, deliver to the other Party satisfactory evidence of such authority.

  

	45.	 	Conflict. 

  
 Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or
handwritten provisions. 
  

	46.	 	Offer. 

  
 Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other
Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto. 
  

	47.	 	Amendments. 

  
 This Lease may be modified only in writing, signed by the Parties In interest at the time of the modification. As long as they do not materially change
Lessee’s obligations hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises.

  

	48.	 	Multiple Parties. 

  

 38 

 If more than one person or entity is named herein as either Lessor or Lessee, such multiple Parties shall
have joint and several responsibility to comply with the terms of this Lease. 
  

	49.	 	Mediation and Arbitration of Disputes. 

  
 An Addendum requiring the Mediation and/or the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease þ is  ̈ is not attached to this Lease. 
  
 LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS
LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT
TO THE PREMISES. 
  

 39 

 ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY AN
BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH I RELATES. THE PARTIES ARE URGED TO: 
  
 1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE. 
  
 2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE
OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEE’S INTENDED USE. 
  
 WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN
PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES IS LOCATED. 
  
 The parties hereto have executed this Lease at the place and on the dates specified above their respective signatures. 
  

									
	 Executed at: San Jose, California
 on: October 26, 2000
	 	 	 	 Executed at: Cupertino, California
 on: October 26, 2000

			
	 By LESSOR:
 Lawrence L. Reece Trust
	 	 	 	 By LESSOR:
 Nextest Systems Corporation

					
	 By:
	 	 /s/ Lawrence L. Reece
	 	 	 	 By:
	 	 /s/ Robin Adler

	 	 	
	 	 	 	 	 	

	 Name Printed:
	 	 Lawrence L. Reece
	 	 	 	 Name Printed:
	 	 Robin Adler

	 Title:
	 	 Trustee
	 	 	 	 Title:
	 	 CEO

  

									
					
	 By:
	 	 	 	 	 	 By:
	 	 /s/ James Moniz

	 	 	
	 	 	 	 	 	

	 Name Printed:
	 	 	 	 	 	 Name Printed:
	 	 James Moniz

	 	 	
	 	 	 	 	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 CFO

	 	 	
	 	 	 	 	 	 
	 Address:
	 	 360 Turtle Creek Court
 San Jose, CA 95125
	 	 	 	 Address:
	 	 10261 Bubb Road
 Cupertino, CA 95014

					
	 Telephone:
	 	 (408) 298-5400
	 	 	 	 Telephone:
	 	 (408) 517-1200

					
	Facsimile:	 	 (             )

	 	 	 	Facsimile:	 	(408) 517-1210
					
	Federal ID No.	 	
	 	 	 	Federal ID No.	 	77-0470150 (EIN)

  

 40 

	NOTE: 	 	These forms are often modified to meet the changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AMERICAN
INDUSTRIAL REAL ESTATE ASSOCIATION, 700 So. Flower Street, Suite 600, Los Angeles, California 90017. (213) 687-8777. Fax No. (213) 687-8616 

  
 ATTACHMENT: California Sale/Lease Americana with Disabilities Act, Hazardous Materials, and Tax Disclosure 
  

 41 

 ADDENDUM TO LEASE AGREEMENT 
  
 THIS ADDENDUM TO THE AIR STANDARD INDUSTRIAL/COMMERCIAL SINGLE TENANT LEASE — NET IS MADE ON OCTOBER 16, 2000 BY AND BETWEEN LAWRENCE
L. REECE TRUST (HEREIN CALLED LESSOR) AND NEXTEST SYSTEMS CORPORATION (HEREIN CALLED LESSEE) AS AN ADDENDUM TO THAT CERTAIN LEASE DATED OCTOBER 16, 2000 (THE LEASE), CONCERNING THE PREMISES COMMONLY KNOWN AS 1931 MONTEREY ROAD, BUILDING 3, SAN JOSE,
CALIFORNIA (THE PREMISES), WHICH IS MORE PARTICULARLY DESCRIBED IN THE LEASE. 
  

	50.	 	RENT SCHEDULE: 

  

											
	 Months

	  	Rent/Square Foot

	  	Rent per Month

	 	 	Deferred Rent
Recapture

	 1 (prorated per Paragraph 51)
	  	$	2.25 NNN	  	$	74,7000.00 NNN	 	 	 	 
	 02-05
	  	$	1.50 NNN	  	$	50,000.00 NNN	(a)	 	 	 
	 06-12
	  	$	2.25 NNN	  	$	74,700.00 NNN	+	 	$	1,814.94
	 13-24
	  	$	2.36 NNN	  	$	78,435.00 NNN	+	 	$	1,814.94
	 25-36
	  	$	2.48 NNN	  	$	82,356.75 NNN	+	 	$	1,814.94
	 47-48
	  	$	2.60 NNN	  	$	86,473.80 NNN	+	 	$	1,814.94
	 61-72
	  	$	2.87 NNN	  	$	95,335.80 NNN	+	 	$	1,814.94
	 73-84
	  	$	3.01 NN	  	$	100,102.59 NNN	+	 	$	1,814.94

  

	 	(a)	 	Deferred Rent for months 2 through 5 at $24,700.00 per month shall be recaptured by Lessor as follows: 

  
 PV = $98,800.00 @ 12% interest, amortized over months 6 through 84 = $1,814.94 per month, to be paid in addition to the Base
Rent and subsequent annual increases starting on the sixth (6th) month of the lease term. 
  

	51.	 	BASE RENT: 

  
 The first month’s rent shall be prorated so that all subsequent monthly rental payments shall be due and payable on the first day of each month
thereafter. Rent due upon lease commencement shall be $74,700.000 NNN, prorated to the end of the first month. 
  

	52.	 	EXCLUSIVE RIGHT TO NEGOTIATE LEASE EXTENSION: 

  
 Lessee shall serve written notice to Lessor prior to the expiration of the fifth year (5’) of the lease term, of Lessee’s interest in
negotiating an extension to the original lease term. Lessee and Lessor shall enter into exclusive negotiation to determine a mutually agreeable and acceptable Lease Rate and Lease Term extension. If the parties have not come to an agreement prior
the expiration of the sixth (6m) year of the original Lease 
  

 Page 1 

 
Term, then all negotiations shall cease and Lessor shall have no obligation to extend the Lease Term. 
  

	53.   A.  	 	SECURITY DEPOSIT: Providing that Lessee is not in default or in breach of the Lease during the Lease term, Lessor shall provide for an Interest payment to Lessee on only the
Cash Security Deposit held by Lessor as follows: 

  
 Upon each anniversary of the Lease, Lessor shall pay to Lessee an amount of $9,181.77, or three percent (3%) of the $306,059 Cash Deposit. Lessor shall pay this amount to Lessee within fifteen (15) days after each anniversary of this Lease,
providing the above. 
  

	 	B.	 	LETTER OF CREDIT: Simultaneously with Lessee’s delivery to Lessor of this Lease and the first month’s Base Rent, Lessee shall deliver to Lessor, as
collateral for the full and faithful performance by Lessee of all of its obligations under this Lease and for all losses and damages Lessor may suffer as a result of any default by Lessee under this Lease, an irrevocable and unconditional negotiable
Letter of Credit, in the form and containing the terms required herein, payable in the City of San Jose, California running in favor of Lessor issued by a solvent bank under the supervision of the Superintendent of Banks of the State of California,
or a National Banking Association, in the amount of Six Hundred Twelve Thousand One Hundred Nineteen Dollars ($612,119.00) (the “Letter of Credit”). So long as Lessee is not then, or has not been in breach of any provision of the lease,
then the Letter of Credit amount will decrease One Hundred Thousand Dollars ($100,000.00) per year on each anniversary date of the lease, commencing on the third anniversary of the lease. The Letter of Credit shall be (a) at sight and irrevocable,
(b) maintained in effect, whether through replacement, renewal or extension, for the entire Lease Term (the “Letter of Credit Expiration Date”) and Lessee shall deliver a new Letter of Credit or certificate of renewal or extension to
Lessor at least thirty (30) days prior to the expiration of the Letter of Credit, without any action whatsoever on the part of Lessor, (c) subject to the Uniform Customs and Practices for Documentary Credits (1993-Rev) International Chamber of
Commerce Publication #500, (d) acceptable to Lessor in its reasonable discretion, and (e) fully assignable by Lessor and permit partial draws. Following the Commencement Date, the initial Letter of Credit shall be in the amount of Six Hundred Twelve
Thousand One Hundred Nineteen Dollars ($612,119.00) (the “Original Letter of Credit Amount”). In addition to the foregoing, the form and terms of the Letter of Credit (and the bank issuing the same) shall be acceptable to Lessor, in
Lessor’s reasonable discretion, and shall provide, among other things, in effect that: 

  

 2 

 (1) Lessor, or its then managing agent, shall have the right to draw down an amount up to the face amount
of the Letter of Credit upon the presentation to the issuing bank of Lessor’s (or Lessor’s then managing agent’s) statement than such amount is due to Lessor under the terms and conditions of this Lease, it being understood that is
Lessor or its managing agent be a corporation, -partnership or other entity, then such statement shall be signed by an officer (if a corporation), a general partner (if a partnership), or any authorized party (if another entity); (2) the Letter of
Credit will be honored by the issuing bank without inquiry as to the accuracy thereof and regardless of whether the Lessee disputes the content of such statement; and (3) in the event of a transfer of Lessor’s interest in the Building, Lessor
shall transfer the Letter of Credit, in whole or in part (or cause a interest in the Building, Lessor shall transfer the Letter of Credit, in whole or in part (or cause a substitute Letter of Credit to be delivered, as applicable), to the transferee
and thereupon the Lessor shall, without any further agreement between the parties, be released by Lessee from all liability therefore, and it is agreed that the provisions hereof shall apply to every transfer or assignment of the whole or any
portion of said Letter of Credit to a new Lessor. If, as a result of any such application of all or any part of the Letter of Credit, the amount of the Letter of Credit shall be less than the Original Letter of Credit Amount or the Reduced Letter of
Credit Amount, as the case may be, Lessee shall within five (5) days thereafter provide Lessor with additional letter(s) of credit in an amount equal to the deficiency (or replacement Letter of Credit in the total amount of the Original Letter of
Credit Amount or Reduced Letter of Credit Amount, as the case may be, and each such additional (or replacement) letter of credit shall comply with all of the provisions of this Paragraph 52, and if Lessee fails to do so, the same shall constitute an
incurable default by Lessee. Lessee further covenants and warrants that it will neither assign nor encumber the Letter of Credit or any part thereof and that neither Lessor not its successors or assigns will be bound by any such assignment,
encumbrance, attempted assignment or attempted encumbrance. Without limiting the generality of the foregoing, it the Letter of Credit expires earlier than the Letter of Credit Expiration Date, Lessor will accept a renewal thereof or substitute
Letter of Credit (such renewal or substitute Letter of Credit to be in effect not later than thirty (30) days prior to the expiration thereof), which shall be irrevocable and automatically renewable as above provided through the Letter of Credit
Expiration Date upon the same terms as the expiring Letter of Credit or such other terms as may acceptable to Lessor in its reasonable discretion. However, if the Letter of credit is not timely renewed or a substitute Letter of Credit is not timely
received, or if Lessee fails to maintain the Letter of Credit in the amount and terms set forth in this paragraph 52, Lessor shall have the right to present such Letter of Credit to 

  

 3 

 
the bank in accordance with the terms set forth in this paragraph 52 and the entire sum evidenced thereby shall be paid to and held by Lessor as collateral
for performance of all of Lessee’s obligations under this Lease and for all losses and damages Lessor may suffer as a result of and default by Lessee under this Lease. If there shall occur a default under this Lease, Lessor may, but without
obligation to do so, draw upon the Letter of Credit, in part or in whole, to the extent required to cure any default of Lessee and/or to compensate Lessor for any and all damages of any kind or nature sustained or which may be sustained by Lessor
resulting Lessee’s default. Lessee agrees not to interfere in any way with payment to Lessor of the proceeds of the Letter of Credit, either prior to or following a “draw” by Lessor of any portion of the Letter of Credit, regardless
of whether any dispute exists between Lessee and Lessor as to Lessor’s right to draw from the Letter of Credit. No condition or term of this Lease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of
Credit in failing to honor a drawing upon such Letter of Credit in a timely manner. Lessor and Lessee acknowledge and agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or substitute therefore be (i) deemed to
be or treated as a “security deposit” within the meaning of California Civil Code Section 1950.7, (ii) subject to the terms of such Section 1950.7, or (iii) intended to serve as a “security deposit” within the meaning of such
Section 1950.7. The parties hereto (x) recite that the Letter of Credit is not intended to serve as a security deposit and such Section 1950.7 and any and all other laws, rules and regulations applicable to security deposits in the commercial
context (“Security Deposit Laws”) shall have no applicability or relevancy to the Letter of Credit and (y) waive any all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the
Security Deposit Laws. 
  
 Upon the Lessee successfully
satisfying all obligations of this Agreement, then the Letter of Credit shall be terminated upon the seventh (7th) anniversary of the Lease. 
  

	54.	 	TENANT IMPROVEMENTS: 

  
 Other than the Shell Improvements, Lessee shall be responsible for all improvements (collectively, the “Tenant Improvements”) necessary to
prepare the Premises for the operation of Lessee’s business. Before commencement of the Tenant Improvements in the Premises, Lessee shall submit plans and specifications for Lessee’s Work and the name of the contractors Lessee desires to
perform such work to Lessor for review and approval, which approval shall not be unreasonably withheld or conditioned. Lessor shall respond, in approval or disapproval, of such submittals within five (5) days 

  

 4 

 
of receipt. Lessee shall not commence work until Lessor has approved Lessee’s plans and specifications and Lessee’s contractors. No response by
Lessor shall be deemed Lessor’s approval. Lessee shall construct the Tenant Improvements in accordance with the plans approved by Lessor, all applicable requirements, Paragraph 7.2 and the other applicable provisions of this Lease and using
only contractors approved by Lessor. 
  
 Included in the Base Rental rate, Lessor
shall provide Lessee with a Twenty-Five Dollar ($25.00) per square foot allowance to be applied to the cost of the Tenant Improvements (the “TI Allowance”). The TI Allowance shall be payable in course of construction installments following
delivery to Lessor of the applicable Construction Documents (as defined below). Each installment shall be payable within twenty-five (25) days after Lessee supplies Lessor with documentation satisfactory to Lessor, that Lessee has approved of the
work performed and the contractor’s invoice is correct and acceptable. Lessor’s total Tenant Improvement Allowance shall not exceed Eight Hundred Thirty Thousand Dollars ($830,000.00). 
  
 Together with each request for a disbursement of the TI Allowance, Lessee shall submit the
following to Lessor (the “Construction Documents”): 
  
 (a) A copy of approvals or sign offs by applicable licensing agencies applicable to the portion of the Tenant Improvements then completed to the extent required for lessee to proceed with the construction of the
Tenant Improvements; 
  
 (b) A copy of an
application for payment (using AIA Form G702 or another form reasonably acceptable to Lessor) from Lessee’s general contractor listing all contractors, subcontractors, suppliers, and other persons or entities that provided labor or materials in
connection with the Tenant Improvements; 
  
 (c)
Partial unconditional lien waivers signed by each provider of labor or materials in connection with this portion of the Tenant Improvements then completed; and 
  

(d) Paid invoices showing payment of all funds required to be expended by Lessee as a condition to the disbursement and showing payment
of the amounts to be covered by the applicable disbursement of the TI Allowance. 
  
 Lessor shall post a Notice of Non-Responsibility on the property during Tenant Improvement construction. 
  
 Following completion of the Tenant Improvements, Lessee shall deliver to Lessor the following documents (the “Final Construction Documents”): 
  
 (1) A certificate of occupancy or final approval of the Tenant Improvements
by all applicable licensing agencies required for Lessee to legally occupy the Premises; 
  

 5 

 (2) A certificate by Lessee’s architect that the Tenant Improvements have been completed in
accordance with plans and specifications approved by Lessor; 
  
 (3) A copy of an application for payment (using AIA Form G702 or another form reasonably acceptable to Lessor) from Lessee’s general contractor listing all contractors, subcontractors, suppliers, and other persons or entities that
provided labor or materials in connection with the Tenant Improvements; 
  
 (4) Final unconditional lien waivers signed by each provider of labor or materials in connection with the Tenant Improvements; and 
  
 (5) A complete set of marked up construction drawings and structural calculation for the Tenant Improvements, accurately showing in detail the actual
completed work. 
  
 “Tenant Improvements,” as used in
this Lease for purposes of payment of the TI Allowance, shall mean and include, without limitation, the following definitions, costs and fees: 
  
 (i) All costs of preliminary space planning, interior design, finish schedule plans and specifications and final architectural and engineering plans and
specifications (including as-built drawings) for the Tenant Improvements, and other costs associated with completion of said plans; 
  
 (ii) All costs of obtaining building permits and other necessary authorizations and approvals from the City of San Jose and other applicable
jurisdictions; and 
  
 (iii) All direct and indirect costs of
procuring, constructing and installing the Tenant Improvements in the Premises, including, but not limited to, the construction fee, overhead and profit and all labor and materials constituting the Tenant Improvements. 
  
 Tenant Improvements shall specifically not include any alterations or additions constructed
by Lessee pursuant to Paragraph 7.3 of the Lease, any Shell Improvements, and any of Lessee’s trade fixtures, equipment, furniture, furnishings, telephone equipment, or other personal property or any specialized, nonstandard improvements to the
Premises not reasonably expected to add value to the Premises. In addition, fire protection improvements, such as racking, sprinklers, hose racks, draft curtains, smoke vents or reels, shall not be considered Tenant Improvements unless Lessor has
specifically agreed to include them as Tenant Improvements. 
  
 In no event shall
the TI Allowance be applied to any of the following: (i) attorneys’ fees incurred in connection with negotiation of construction contracts, and attorneys’ fees, experts’ fees and other costs of legal and arbitration proceedings to
resolve construction disputes with third parties; (ii) loan fees, mortgage brokerage fees, interest and other 

  

 6 

 
costs of financing construction costs; and (iii) penalties and late charges attributable to the failure to pay construction costs in accordance with this
Lease. 
  

	55.	 	SIGNAGE: 

  
 Lessee shall be allowed to install monument signage as approved by the City of San Jose in accordance with the Monterey Business Center CC&Rs.

  

	56.	 	BUILDING LOW-VOLTAGE SYSTEMS: 

  
 All data, security, card access, fire alarm, video security, telephone, sound and audiovisual systems installed shall be installed by Lessor per separate
fair market negotiated agreement. Lessee shall have the right to receive comparison bids for the installation of same quality of materials and construction installation. 
  

	57.	 	SUBLEASE, PROFIT: 

  
 Notwithstanding anything contained in Paragraph 12 of the Lease to the contrary, Lessee shall not assign or transfer the Lease nor sublet all or any
portion of the Premises without the prior written consent of Lessor, which consent shall not be unreasonably withheld or delayed. As a reasonable condition to Lessor’s consent to any assignment or sublease pursuant to Paragraph 12 of this
Lease, Lessee shall pay to Lessor fifty percent (50%) of all base rent, additional rent and other consideration payable by such assignee or Sublessee in excess of the rent amounts payable under this Lease (prorated in the case of a sublease of a
portion of the Premises), except that Lessee may recover commercially reasonable third party brokerage commissions incurred by Lessee (consistent with industry standard rates) and reasonable legal fees incurred by Lessee for such assignment or
sublease (not to exceed Five Thousand Dollars ($5,000.00)). If part of the consideration for such assignment or sublease is payable other than in cash, Lessor’s share of that non-cash consideration shall be in a form reasonably satisfactory to
Lessor. 
  

	58.	 	COMMENCEMENT DATE: 

  
 Upon the Lease Commencement Date being finalized, Lessor shall serve Lessee a Notice of “Commencement Date Memorandum” stipulating the exact
date of commencement. 
  
 In the event Lessor is unable to
commence this Lease Agreement by January 1, 2001, then Lessee may, at Lessee’s sole discretion, cancel the Lease and receive back all Deposits held by Lessor. 
  
 AGREED AND ACCEPTED: 
  

									
	 Lessor: Lawrence L. Reece Trust
	 	 	 	 Lessee: Nextest Systems Corporation

  

 7 

									
					
	By:	 	 /s/ Lawrence L. Reece

	 	 	 	By:	 	 /s/ Robin Adler

	 Title:
	 	 Trustee
	 	 	 	 Title:
	 	 CEO

	 Date:
	 	 October 26, 2000
	 	 	 	 Date:
	 	 October 26, 2000

  

 8 

 ARBITRATION AGREEMENT 
 Standard Lease Addendum 
  
 Dated
October 16, 2000 
  
 By and Between (Lessor) Lawrence L. Reece Trust

  
 (Lessee) Nextest Systems Corporation 
  
 Address of Premises 1931 Monterey Road, Building 3 San Jose, California 
  
 Paragraph 59 
  

	A.	 	ARBITRATION OF DISPUTES: 

  
 Except as provided in Paragraph B below, the Parties agree to resolve any and all claims, disputes or disagreements arising under this Lease, including, but not limited
to any matter relating to Lessor’s failure to approve an assignment, sublease or other transfer of Lessee’s interest in the Lease under Paragraph 12 of this Lease, any other defaults by Lessor, or any defaults by Lessee by and through
arbitration as provided below and irrevocably waive any and all rights to the contrary. The Parties agree to at all times conduct themselves in strict, full, complete and timely accordance with the terms hereof and that any attempt to circumvent the
terms of this Arbitration Agreement shall be absolutely null and void and of no force or effect whatsoever. 
  

	B.	 	DISPUTES EXCLUDED FROM ARBITRATION: 

  
 The following claims, disputes or disagreements under this Lease are expressly excluded from the arbitration procedures set forth herein: 1. Disputes for which a
different resolution determination is specifically set forth In this Lease, 2. All claims by either party which (a) seek anything other than enforcement or determination of rights under this Lease, or (b) are primarily founded upon matters of fraud,
willful misconduct, bad faith or any other allegations of tortious action, and seek the award of punitive or exemplary damages, 3. Claims relating to (a) Lessors exercise of any unlawful detainer rights pursuant to applicable law or (b) rights or
remedies used by Lessor to gain possession of the Premises or terminate Lessee’s right of possession to the Premises,              of which disputes shall be resolved by suit
filed in the applicable court of jurisdiction, the decision of which court shall be subject to appeal pursuant to applicable law and 4. All claims arising under Paragraph 39 of this Lease, which disputes shall be resolved by the specific dispute
resolution procedure provided in Paragraph 39 to the extent that such disputes concern solely the determination of rent. 
  

	C.	 	APPOINTMENT OF AN ARBITRATOR: 

  
 All disputes subject to this Arbitration Agreement, shall be determined by binding arbitration before:  ̈ a retired judge of the applicable court of jurisdiction (e.g., the 

  

 Page 1 

 
Superior Court of the State of California) affiliated with Judicial Arbitration & Mediation Services, Inc. (“JAMS”), v the American Arbitration
Association (“AAA”) under its commercial arbitration rules,  ̈                                      
                                        
           , or as may be otherwise mutually agreed by Lessor and Lessee (the “Arbitrator”). Such arbitration shall be initiated by the Parties, or either of them, within ten (10) days
after either party sends written notice (the “Arbitration Notice”) of a demand to arbitrate by registered or certified mail to the other party and to the Arbitrator. The Arbitration Notice shall contain a description of the subject matter
of the arbitration, the dispute with respect thereto, the amount involved, if any, and the remedy or determination sought. If the Parties have agreed to use JAMS they may agree on a retired judge from the JAMS panel. If they are unable to agree
within ten days, JAMS will provide a list of three available judges and each party may strike one. The remaining judge (or if there are two, the one selected by JAMS) will serve as the Arbitrator. If the Parties have elected to utilize AAA or some
other organization, the Arbitrator shall be selected in accordance with said organization’s rules. In the event the Arbitrator is not selected as provided for above for any reason, the party initiating arbitration shall apply to the appropriate
Court for the appointment of a qualified retired judge to act as the Arbitrator. 
  

	D.	 	ARBITRATION PROCEDURE: 

  
 1. PRE-HEARING ACTIONS. The Arbitrator shall schedule a pre-hearing conference to resolve procedural matters, arrange for the exchange of
information, obtain stipulations, and narrow the issues. The Parties will submit proposed discovery schedules to the Arbitrator at the pre-hearing conference. The scope and duration of discovery will be within the sole discretion of the Arbitrator.
The Arbitrator shall have the discretion to order a pre-hearing exchange of information by the Parties, including, without limitation, production of requested documents, exchange of summaries of testimony of proposed witnesses, and examination by
deposition of parties and third-party witnesses. This discretion shall be exercised in favor of discovery reasonable under the circumstances. The Arbitrator shall issue subpoenas and subpoenas duces tecum as provided for in the applicable statutory
or case law (e.g., in California Code of Civil Procedure Section 1282.6). 
  
 2. THE DECISION. The arbitration shall be conducted in the city or county within which the Premises are located at a reasonably convenient site. Any Party may be represented by counsel or other authorized
representative. In rendering a decision(s), the Arbitrator shall determine the rights and obligations of the Parties according to the substantive laws and the terms and provisions of this Lease. The Arbitrator’s decision shall be based on the
evidence introduced at the hearing, including all logical and reasonable inferences therefrom. The Arbitrator may make any determination and/or grant any remedy or relief that is just and equitable. The decision must be based on, and accompanied by,
a written statement of decision explaining the factual and legal basis for 

  

 2 

 
the decision as to each of the principal controverted issues. The decision shall be conclusive and binding, and it may thereafter be confirmed as a judgment
by the court of applicable jurisdiction, subject only to challenge on the grounds set forth in the applicable statutory or case law (e.g., in California Code of Civil Procedure Section 1286.2). The validity and enforceability of the
Arbitrator’s decision is to be determined exclusively by the court of appropriate jurisdiction pursuant to the provisions of this Lease. The Arbitrator may award costs, Including without limitation, Arbitrators fees and costs, attorneys’
fees, and expert and witness costs, to the prevailing party, if any, as determined by the Arbitrator in his discretion. 
  
 Whenever a matter which has been submitted to arbitration involves a dispute as to whether or not a particular act or omission (other than a failure to
pay money) constitutes a Default, the time to commence or cease such action shall be tolled from the date that the Notice of Arbitration is served through and until the date the Arbitrator renders his or her decision. Provided, however, that this
provision shall NOT apply in the event that the Arbitrator determines that the Arbitration Notice was prepared in bad faith. 
  
 Whenever a dispute arises between the Parties concerning whether or not the failure to make a payment of money constitutes a default, the service of an
Arbitration Notice shall NOT toll the time period in which to pay the money. The Party allegedly obligated to pay the money may, however, elect to pay the money “under protest” by accompanying said payment with a written statement setting
forth the reasons for such protest. If thereafter, the Arbitrator determines that the Parry who received said money was not entitled to such payment, said money shall be promptly returned to the Party who paid such money under protest together with
interest thereon as defined in Paragraph 13.5. If a Party makes a payment “under protest” but no Notice of Arbitration is filed within thirty days, then such protest shall be deemed waived. (See also Paragraph 43) 
  
 NOTICE: These forms are often modified to meet changing requirements of law and industry
needs. Always write or call us to make sure you are utilizing the most current form: American Industrial Real Estate Association, 700 South Flower Street, Suite 600, Los Angeles, CA 90017, Telephone No.: (213) 687-8777. Fax No.: (213) 687-8616.

  

 3 

 GRUBB&ELLIS 
  
 CALIFORNIA SALE/LEASE AMERICANS WITH DISABILITIES ACT, 
 HAZARDOUS MATERIALS, AND TAX DISCLOSURE 
  
 The Americans With Disabilities Act is intended to make many business establishments equally accessible to persons with a variety of disabilities; modifications to real property may be required. State and local laws
also may mandate changes. The real estate brokers in this transaction are not qualified to advise you as to what, if any, changes may be required now, or in the future. Owners and tenants should consult the attorneys and qualified design
professionals of their choice for information regarding these matters. Real estate brokers cannot determine which attorneys or design professionals have the appropriate expertise in this area. 
  
 Various construction materials may contain items that have been or may in the future be
determined to be hazardous (toxic) or undesirable and may need to be specifically treated/handled or removed. For example, some transformers and other electrical components contain PCBs, and asbestos has been used in components such as
fire-proofing, heating and cooling systems, air duct insulation, spray-on and tile acoustical materials, linoleum, floor tiles, roofing, dry wall and plaster. Due to prior or current uses of the Property or in the area, the Property may have
hazardous or undesirable metals (including lead-based paint), minerals, chemicals, hydrocarbons, or biological or radioactive items (including electrical and magnetic fields) in soils, water, building components, above or below-ground containers or
elsewhere in areas that may or may not be accessible or noticeable. Such items may leak or otherwise be released. Real estate brokers have no expertise in the detection or correction of hazardous or undesirable items. Expert inspections are
necessary. Current or future laws may require clean up by past, present and/or future owners and/or operators. It Is the responsibility of the Seller/Lessor and Buyer/Tenant to retain qualified experts to detect and correct such matters and to
consult with legal counsel of their choice to determine what provisions, if any, they may include in transaction documents regarding the Property. 
  
 Sellers/Lessors are required under California Health and Safety Code Section 25915 et seq. to disclose reports and surveys regarding asbestos to certain persons,
including their employees, contractors, co-owners, purchasers and tenants. Buyers/Tenants have similar disclosure obligations. Sellers/Lessors and Buyers/Tenants have additional hazardous materials disclosure responsibilities to each other under
California Health and Safety Code Section 25359.7 and other California laws. Consult your attorney regarding this matter, and make proper disclosures. Grubb & Ellis Company is not qualified to assist you in this matter or provide you with other
legal or tax advice. 
  

 Page 1 

 Sale, lease and other transactions can have local, state and federal tax consequences for the seller/lessor and/or
buyer/tenant. In the event of a sale, Internal Revenue Code Section 1445 requires that all buyers of an interest in any real property located in the United States must withhold and pay over to the Internal Revenue Service (IRS) an amount equal to
ten percent (10%) of the gross sales price within ten (10) days of the date of the sale unless the buyer can adequately establish that the seller was not a foreigner, generally by having the seller sign a Non-Foreign Seller Certificate. Note that
depending upon the structure of the transaction, the tax withholding liability could exceed the net cash proceeds to be paid to the seller at closing. California poses an additional withholding requirement equal to three and one-third percent (3
1/3%) of the gross sales price not only on foreign sellers but also out-of-state sellers and sellers leaving the state if the sale price exceeds $100,000. Generally, withholding is required if the sales proceeds are disbursed outside of
California, if the last known address of the seller is outside of California or if a financial Intermediary is used. Consult your tax and legal advisor. Real estate brokers are not qualified to give legal or tax advice or to determine whether any
other person is properly qualified to provide legal or tax advice. 
  

									
	LESSOR	 	 	 	TENANT
			
	 Entity Name: Lawrence L. Reece Trust
	 	 	 	 Entity Name: Nextest Systems Corporation

					
	By:	 	 /s/ Lawrence L. Reece

	 	 	 	By:	 	 /s/ Robin Adler

	 Title:
	 	 Trustee
	 	 	 	 Title:
	 	 CEO

	 Date:
	 	 October 26, 2000
	 	 	 	 Date:
	 	 October 26, 2000

  
 Property Address: 1931 Monterey Road,
Building 3, San Jose, California 
  

 2 

 EXHIBIT B 
  
 DOCUMENT’ 15125033 
  
 RECORDING REQUESTED BY: 
  
 WHEN RECORDED MAIL TO: 
  

			
	LUCE, FORWARD, HAMILTON & SCRIPPS	 	 BRENDA DAVIS

	600 West Broadway, Suite 2600	 	 SANTA CLARA COUNTY RECORDER

	San Diego, CA 92101	 	 Recorded at the request of

	Attn: Nancy T. Scull, Esq.	 	 First American Title Company

	 
	

	 	 	 Space above for recorder’s use only

  
 DECLARATION OF
COVENANTS AND GRANT OF EASEMENTS 
  

 Page 1 

 TABLE OF CONTENTS 
  

					
	 	  	Page

	 ARTICLE 1 DEFINITIONS
	  	2
			
	 1.1
	  	 Definitions
	  	2
	 	  	 1.1.1 Access Driveways
	  	2
	 	  	 1.1.2 Declaration
	  	2
	 	  	 1.1.3 City
	  	2
	 	  	 1.1.4 Clean-Up Work
	  	2
	 	  	 1.1.5 Covered Property
	  	2
	 	  	 1.1.6 Default Interest Rate
	  	2
	 	  	 1.1.7 Easement Areas
	  	2
	 	  	 1.1.8 Easement Area Improvements
	  	2
	 	  	 1.1.9 Easements
	  	2
	 	  	 1.1.10 Final Map
	  	3
	 	  	 1.1.11 Mortgage
	  	3
	 	  	 1.1.12 Mortgagee
	  	3
	 	  	 1.1.13 Owner and Owners
	  	3
	 	  	 1.1.14 Parcel or Parcels
	  	3
	 	  	 1.1.15 Permittee(s)
	  	3
	 	  	 1.1.16 Person or Persons
	  	3
	 	  	 1.1.17 Phase 1 Owner
	  	3
	 	  	 1.1.18 Phase 2 Owner
	  	3
	 	  	 1.1.19 Storm Drain Improvements
	  	3
	 	  	 1.1.20 Utility Improvements
	  	4
	 	  	 1.1.21 Work Plan
	  	4
		
	 ARTICLE 2 EASEMENTS
	  	4
			
	 2.1
	  	 Easements
	  	4
	 	  	 2.1.1 Access Driveway Easements
	  	4
	 	  	 2.1.2 Storm Drain Easements
	  	4
	 	  	 2.1.3 Storm Water Runoff Easements
	  	4
	 	  	 2.1.4 Utility Easements
	  	4
	 2.2
	  	 Temporary Easements
	  	5
	 	  	 2.2.1 Temporary Construction Easements
	  	5
	 	  	 2.2.2 Temporary Grading Easements
	  	5
	 	  	 2.2.3 Temporary Easements for Clean-Up Work
	  	5
	 	  	 2.2.4 Temporary Easement in Favor of Parcel 5
	  	6
	 	  	 2.2.5 Right of Entry
	  	6
	 2.3
	  	 Character of Easements
	  	7
	 2.4
	  	 Use of Easements
	  	7
	 2.5
	  	 Emergency Access Easement
	  	8
	 2.6
	  	 Self-Help Easements
	  	8
	 2.7
	  	 Obligation to Install
	  	8

  

					
	 ARTICLE 3 MAINTENANCE
	  	9
			
	 3.1
	  	 Maintaining Owners
	  	9
	 3.2
	  	 Maintenance of the Access Driveways
	  	9
	 3.3
	  	 Cost of Repaving
	  	10
	 3.4
	  	 Necessity of Repaving
	  	10
	 3.5
	  	 Payment of Repaving Expenses
	  	10
	 3.6
	  	 Maintenance of Storm Drain Improvements
	  	10
	 3.7
	  	 Maintenance of Utility Improvements
	  	11
	 3.8
	  	 Indemnity
	  	11
	 3.9
	  	 Failure to Maintain
	  	11
	 3.10
	  	 Collection
	  	12
		
	 ARTICLE 4 REMEDIES
	  	12
			
	 4.1
	  	 Legal Action Generally
	  	12
	 4.2
	  	 Lien
	  	12
	 	  	 4.2.1 Creation
	  	12
	 	  	 4.2.2 Amount
	  	12
	 	  	 4.2.3 Priority
	  	12
	 	  	 4.2.4 Extinguishment
	  	13
	 4.3
	  	 Arbitration of Disputes
	  	13
	 	  	 4.3.1 Disputes Subject to Arbitration
	  	13
	 	  	 4.3.2 Demand and Limitations on Claims
	  	13
	 	  	 4.3.3 Provisional Remedies
	  	13
	 	  	 4.3.4 Powers and Duties of the Arbitrator
	  	13
	 	  	 4.3.5 Discovery
	  	14
	 	  	 4.3.6 Costs and Fees of the Arbitrator
	  	14
	 4.4
	  	 Injunctive & Declaratory Relief
	  	14
	 4.5
	  	 Personal Obligation
	  	14
	 4.6
	  	 Remedies Cumulative
	  	14
		
	 ARTICLE 5 INSURANCE
	  	14
			
	 5.1
	  	 Liability Insurance
	  	15
	 5.2
	  	 Blanket Insurance
	  	15
		
	 ARTICLE 6 MISCELLANEOUS
	  	15
			
	 6.1
	  	 Notices
	  	15
	 6.2
	  	 Binding Effect
	  	16
	 6.3
	  	 Attorneys’ Fees
	  	16
	 6.4
	  	 Breach - Effect on Mortgagee and Right to Cure
	  	17
	 6.5
	  	 Modification
	  	17
	 6.6
	  	 Severability
	  	17
	 6.7
	  	 Governing Law
	  	17
	 6.8
	  	 Terminology
	  	18
	 6.9
	  	 Captions
	  	18
	 6.10
	  	 Not a Public Dedication
	  	18
	 6.11
	  	 Entire Declaration
	  	18

  

					
	 6.12
	  	Duration	  	18
	 6.13
	  	Waiver of Default	  	18
	 6.14
	  	Assignment of Rights	  	19
	 6.15
	  	Breach Shall Not Permit Termination	  	 

  

 DECLARATION OF COVENANTS AND GRANT OF EASEMENTS 
 (San Jose, California) 
  
 This DECLARATION OF COVENANTS AND GRANT OF EASEMENTS (“Declaration”) is made and entered into as of January 19, 2000, by 1931 MONTEREY, L.L.C.,
a Delaware limited liability company (“Phase 1 Owner”) and PEPPER LANE-MONTEREY ROAD, LLC, a California limited liability company (“Phase 2 Owner”), with reference to the facts set forth below. 
  
 RECITALS 
  
 A. Phase 1 Owner owns certain real property located in the City of San Jose, County of Santa Clara, State of California, as
more particularly described on Exhibit “A-1” attached hereto and incorporated herein by this reference (“Phase I Parcels”). 
  
 B. Phase 2 Owner owns adjacent parcels of real property located in the City of San Jose, County of Santa Clara, State of California, more particularly
described on Exhibit “A-2” attached hereto and incorporated herein by this reference (“Phase 2 Parcels”). (Herein the Phase 1 Parcels and Phase 2 Parcels are referred to collectively as the “Covered Property”).

  
 C. The Phase 1 Parcels consist of Lots 2, 3, 4 and 5 shown on
Tract Map No. 9222 recorded on December 22, 1999 in Book 723 of Maps at pages 1-4, Santa Clara County Records (“Final Map”). The Phase 2 Parcels consist of Lots 1 and 6 shown on the Final Map. 
  
 D. It is the purpose of this Declaration to provide for the construction and
maintenance of certain improvements for the benefit of the Covered Property, including access driveways and ancillary curbs, storm drain facilities, and facilities for sewer, water and other utilities, all as more particularly described in this
Declaration (collectively, “Easement Area Improvements”). 
  
 E. The Phase 1 Owner and Phase 2 Owner further desire to establish certain easements, including reciprocal easements relating to and for ingress and egress to the Easement Area Improvements, and to impose covenants and conditions with
respect to the Covered Property for the benefit of each of the Parcels within the Covered Property and the successor Owners which are hereby expressly declared to be binding upon the Covered Property and each portion thereof and shall run with the
Covered Property and each portion located therein and inure to the benefit of and be a burden upon the Covered Property and shall bind the respective heirs, successors and assigns of the Covered Property and any portion thereof and shall be
covenants running with the land and mutual equitable servitudes. 
  

	59.	 	DEFINITIONS 

  
 59.1 Definitions. Except as the context otherwise requires, defined terms shall have the meanings set forth below. 
  
 (a) Access Driveways. The term “Access Driveways” means the
access driveways and related improvements to be constructed within the Easement Areas intended for the nonexclusive use by the Owners (as defined below) and their Permittee(s) (as defined below). 
  
 (b) Declaration. The term “Declaration” means this
Declaration of Covenants and Grant of Easements, as it may from time to time be amended. 
  
 (c) City. The term “City” means the City of San Jose, California. 
  
 (d) Clean-Up Work. The term “Clean-Up Work” means the work to be performed pursuant to the Work Plan (as
defined below). 
  
 (e) Covered Property. The term
“Covered Property” refers collectively to the Phase 1 Parcels and the Phase 2 Parcels. 
  
 (f) Default Interest Rate. The term “Default Interest Rate” means the lesser of (i) five percent (5%) per annum in excess of the
“Prime Rate,” or (ii) the highest rate allowed bylaw. The “Prime Rate” shall be the rate announced as such from time to time by Bank of America, NT & SA, or its successor. If there shall be no such announced rate of such bank
or its successor, then the “Prime Rate” shall be such equivalent rate as is charged from time to time by major money-center banks. 
  
 (g) Easement Areas. The term “Easement Areas” refers to those areas on the Covered Property situated outside of the Building Envelopes
designated on the Site plan attached hereto as Exhibit “B” and incorporated herein. 
  
 (h) Easement Area Improvements. The term “Easement Area Improvements” refers collectively to the Access Driveways, the Utility
Improvements and the Storm Drain Improvements. 
  
 (i)
Easements. The term “Easements” means the easements granted pursuant to this Declaration. 
  

 2 

 (j) Final Map. The term “Final Map” means Tract Map No. 9222 recorded on December 22,
1999 in Book 723 of Maps at pages 1-4 of the Santa Clara County Records. Opus/Pepper Lane - RBA 
  
 (k) Mortgage. The term “Mortgage” means any first or second mortgage, indenture of first or second mortgage, or first or second deed of
trust of the interest, whether fee or leasehold, creating a lien on a Parcel. 
  
 (l) Mortgagee. The term “Mortgagee” means a mortgagee or trustee and beneficiary under a Mortgage. 
  
 (m) Owner and Owners. The term “Owner” or “Owners” means the Phase 1 Owner and the Phase 2 Owner and all successor fee title
owners to all or any portion of the Covered Property and their successors in interest. If a Parcel is further divided into one or more legal lots, each of such separate legal lots shall thereafter be considered to be a Parcel and the Owner of each
such legal lot shall be an Owner. 
  
 (n) Parcel or
Parcels. The term “Parcel” or “Parcels” means each of the legal lots comprising the Phase 1 Parcels and Phase 2 Parcels and any further subdivisions thereof. 
  
 (o) Permittee(s). The term “Permittee(s)” refers to each
Owner’s tenants, subtenants, occupants, agents, employees, contractors, consultants, concessionaires, licensees, customers and invitees. 
  
 (p) Person or Persons. The term “Person” or “Persons” means and include individuals, partnerships, firms, associations, joint
ventures, corporations, or any other form of business entity. 
  
 (q) Phase 1 Owner. The term “Phase 1 Owner” initially means 1931 Monterey, L.L.C., a Delaware limited liability company and, unless otherwise provided in this Agreement, upon conveyance of any portion of the Phase 1
Parcels, also includes the successor Owner(s) of the Phase 1 Parcels. 
  
 (r) Phase 2 Owner. The term “Phase 2 Owner” means Pepper Lane - Monterey Road, LLC, a California limited liability company and upon conveyance of any portion of the Phase 2 Parcels, also includes the
successor Owner(s) of the Phase 2 Parcels. 
  
 (s)
Storm Drain Improvements. The term “Storm Drain Improvements” refers to the storm drain improvements to be constructed within the Easement Areas. 
  

 3 

 (t) Utility Improvements. The term “Utility Improvements” means the private or public
electrical, telephone, cable and other utility improvements which may be constructed within the Easement Areas. 
  
 (u) Work Plan. The-term “Work Plan” means the work plan for the Property prepared by Secor (Revision 4) dated January 6, 2000 and
approved by the Department of Toxic Substances Control on January 7,2000. 
  

	60.	 	EASEMENTS 

  
 60.1 Easements. The Phase 1 Owner and the Phase 2 Owner hereby grant and convey to each other, for the benefit of all present and future Owners of
the Covered Property, the rights, privileges and easements described below. The Easements herein granted are nonexclusive, as each Owner retains all uses and rights with regard to its Parcel which are not inconsistent with the Easements granted
herein, including, but not limited to, the right to grant other easements in the Easement Areas which ate not inconsistent with the Easements granted herein. 
  
 (a) Access Driveway Easements. Each Parcel and Owner and its Permittee(s) shall have nonexclusive, perpetual
easements in, to, over and across the Easement Areas located on the other Parcels for the purpose of vehicular and pedestrian ingress and degress. Such easements will commence upon completion of construction of the Access Driveways.

  
 (b) Storm Drain Easements. Each Parcel and Owner and
its Permittee(s) shall have nonexclusive, perpetual easements in, to, over, under and across the Easement Areas located on the other Parcels for the purpose of draining storm water runoff’ through the Storm Drain Improvements. Such easements
will commence upon completion of installation of the Storm Drain Improvements. 
  
 (c) Storm Water Runoff Easements. Each Parcel and Owner and its Permittee(s) shall have nonexclusive, perpetual easements over the parking areas, driveways and other portions of the other Parcels that have not
been improved with buildings for the purpose of draining storm water runoff. No Owner shall alter or prevent the alteration of such surface area on such Owners Parcel or the drainage system constructed on such Owner’s Parcel if such alteration
would materially and adversely increase the flow of surface water onto an adjacent Parcel. 
  
 (d) Utility Easements. Each Parcel and Owner and its Permittee(s) shall have nonexclusive, perpetual easements in, to, over, under and across the

  

 4 

 
portions of the Easement Areas located on the other Parcels for the use, operation, maintenance, repair and replacement of storm drain facilities, water and
sewer lines, electrical facilities and facilities for other utilities. In the event it is necessary for an Owner to repair, maintain or replace such utilities (“Utility Work”), such Owner shall comply with the following requirements (i)
adequate provision shall be made for the safety and convenience of all persons using the surface of such areas; (ii) the areas and facilities shall be replaced or restored to the condition in which they were prior to the performance of such Utility
Work; (iii) all costs, fees and expenses incurred as a result of such Utility Use shall be borne solely by the Owner which undertakes such Utility Work; (iv) the Owner(s) of the Parcels upon which the Utility Work is to be completed shall be
notified in writing not less than thirty (30) days prior to commencement of such Utility Work; and (v) any construction activities pursuant to such easement rights shall be performed so as not to unreasonably interfere with access to, use,
occupancy, or enjoyment of the remainder of the Covered Property. 
  
 60.2 Temporary Easements. The Phase 2 Owner hereby grants to the Phase 1 Owner the rights, privileges and easements described below. 
  
 (a) Temporary Construction Easements. The Phase I Owner and its Permittee(s) shall have nonexclusive, temporary construction easements in, to, over
and across the Phase 2 Parcels for the purpose of constructing and installing the Easement Area Improvements within the Easement Areas. Such easements will terminate upon completion of the Easement Area Improvements. 
  
 (b) Temporary Grading Easements. The Phase 1 Owner and its
Permittee(s) shall have nonexclusive, temporary easements in, to, over and across the Phase 2 Parcels for the purpose of grading the Parcels substantially in accordance with the grading plan described on Exhibit “C” and incorporated herein
(“Grading Plan”). As part of such easement, the Phase 1 Owner and its Permittee(s) will have the right to remove or add soils as designated on the Grading Plan from the Phase 2 Parcels for purposes of completing the grading of the Phase 1
Parcels. Such easements will terminate upon completion of the grading of the Parcels. 
  
 (c) Temporary Easements for Clean-Up Work. The Phase 1 Owner and its Permittee(s) shall have nonexclusive, temporary easements in, to, over and across the Phase 2 Parcels for the purpose of completing the
Clean-Up Work in accordance with the approved Work Plan. Such easements will terminate upon completion of the Clean-Up Work in accordance with the Work Plan. 
  

 5 

 (d) Temporary Easement in Favor of Parcel 5. Parcel 5 as shown on the Final Map and the Owner of
Parcel 5 and its Permittee(s) shall have nonexclusive, temporary easements in, to, over and across (i) Parcel 6 shown on the Final Map for the purpose of maintaining, repairing, and replacing the Access Driveway located between Parcels 5 and 6 as
shown on Exhibit “D” attached hereto and incorporated herein (“Parcels 5 and 6 Access Driveway”) and (ii) Parcels 1 and 6 for purposes of maintaining the Storm Drain Improvements described on Exhibit “E” attached hereto
and incorporated herein (“Shared Stony Drain Improvements”). Such easements will terminate when the obligations of the Owner of Parcel 5 to maintain the Parcels 5 and 6 Access Driveway and the Shared Storm Drain Improvements terminate
pursuant to Section 3.1 below. 
  
 (e) Right of
Entry. Entry by Phase 1 Owner onto the Phase 2 Parcels under this Section 2-2 shall be subject to the following terms and conditions: 
  
 (i) Notice. Phase 1 Owner shall provide at least one (1) business day’s prior notice to the Phase 2 Owner’s representative, Mr. Henry
Cord (“Cord”), of Phase 1 Owner’s exercise of its rights under this Section to enter the Phase 2 Parcels. The Phase 2 Owner shall be entitled to post and record a Notice of Non-Responsibility for all work performed on the Phase 2
Parcels by Phase 1 Owner or Phase 1 Owner’s contractors. 
  
 (ii) Insurance. Phase I Owner agrees to maintain worker’s compensation and comprehensive liability insurance policies to cover its activities on the Phase 2 Parcels and to keep the Phase 2 Parcels free and clear of all
mechanics’ and materialmen’s liens or other liens arising out of any of its activities or those of its representatives, agents or contractors. Prior to entering on the Phase 2 Parcels, Phase 1 Owner shall deliver to the Phase 2 Owner a
certificate of insurance evidencing insurance coverage in compliance with the terms of this Subsection. Phase 1 Owner shall maintain and keep in effect, at Phase 1 Owner’s sole expense, at all times during the performance of the work under this
Section 2.2, a comprehensive liability insurance policy having a combined liability limit of at least Two Million Dollars ($2,000,000). The insurance policy shall be primary and noncontributing with any insurance which may be carried by Phase 2
Owner. The insurance policy shall also provide that it may not be canceled or modified without at least thirty (30) days prior written notice to Phase 2 Owner. 
  

 6 

 (iii) Indemnity. All work conducted or materials furnished with respect to the Phase 2 Parcels by
or for Phase 1 Owner shall be paid for by Phase 1 Owner as and when due. Phase 1 Owner shall indemnify, defend, protect and hold harmless Phase 2 Owner of and from any and all claims, demands, losses, costs, expenses (including reasonable
attorneys’ fees), damages, liabilities, judgment or recoveries, including those for injury to personal property, arising out of or relating to any such work or materials or the acts or omissions of Phase 1 Owner, its agents or employees in
connection therewith except to the extent caused by Phase 2 Owner’s or its consultants or agents active negligence or willful misconduct; provided, however, Phase 1 Owner shall not be liable as a result of the discovery or presence of Hazardous
Materials on the Covered Property. 
  
 (iv) Plans and
Specifications. Phase 2 Owner, by its execution of this Declaration, acknowledges that it has received the plans and specifications for the Easement Area Improvements. Phase 2 Owner shall have until January 28, 2000 to deliver comments to the
Phase 1 Owner regarding the plans and specifications and Phase 1 Owner shall evaluate whether or not to incorporate such comments into the plans and specifications. Phase 1 Owner shall have no obligation to incorporate such changes into the plans
and specifications and Phase 2 Owner agrees that the final determination of the form and content of the plans and specifications for the Easement Area Improvements shall be made by the Phase 1 Owner and the City of San Jose. 
  
 60.3 Character of Easements. The Easements granted in Sections 2.1
and 2.2 are appurtenant to each Parcel benefited thereby and all future subdivisions thereof and shall inure to the benefit of the present and future Owners of the benefited Parcels and shall burden the Parcels on which such Easements are
located. 
  
 60.4 Use of Easements. No party hereto
shall restrict, block or obstruct the use of the Easements or use the Easements in a manner which is inconsistent with or detrimental to the use of the Easements for the purposes as set forth herein. No building or other structures shall be erected
or maintained over or upon any portion of the Easements which could interfere with the use of the Easements for the purposes as set forth herein. The location and permitted uses of the Easements are established as of the recordation date of this
Declaration and such location and permitted uses shall not be varied without the prior written consent of the parties hereto or their respective successors or assigns; provided, however, that any Owner may, upon at least thirty (30) days prior
written notice to the other Owners, relocate, at such Owner’s sole cost and expense, the Easement Areas and Easement Area Improvements on such Owner’s Parcel 

  

 7 

 
so long as the new locations do not materially and adversely affect the ability of any other Owner to use the Easements for their intended purposes.

  
 60.5 Emergency Access Easement. Each Owner agrees to
grant to the City and any other applicable governmental authorities an easement for emergency access over the Access Driveways upon the request of any other Owner or any such governmental authority. 
  
 60.6 Self-Help Easements. For so long as this Declaration shall be in
full force and effect, and subject to the provisions of Article 4, each Owner shall be granted a temporary easement to enter upon the Parcel of another Owner for the purpose of performing its rights pursuant to Section 3.9. Such easement for entry
shall be limited to the actual area of the Easements. 
  
 60.7 Obligation to Install. The Phase 1 Owner acknowledges and agrees that certain portions of the Easement Area Improvements are required to be installed as a condition to the development of the Phase 2 Parcels. Such portions are
described on Exhibit “F” attached hereto and incorporated herein (“Required Easement Area Improvements”). The Phase 1 Owner covenants and agrees that it will use due diligence and commercially reasonable efforts to install the
Required Easement Area Improvements. If the Phase 1 Owner’s right to purchase the Phase 2 -Parcels terminates on or before January 31, 2001 (“Target Completion Date”), and the Required Easement Area Improvements are not installed by
such Target Completion Date, then the Phase 1 Owner shall have sixty (60) days after the Target Completion Date to complete the Required Easement Area Improvements, and if as of such date the Phase 1 Owner has not completed the Required Easement
Area Improvements, then as the sole and exclusive remedy of the Phase 2 Owner for the failure of the Phase 1 Owner to install the Required Easement Area Improvements, the Phase 2 Owner shall have the right, but not the obligation, to install those
portions of the Required Easement Area Improvements which have not been installed by the Phase 1 Owner in accordance with the provisions set forth below. In the event that after the Target Completion Date, the Phase 1 Owner’s right to purchase
the Phase 2 Parcels terminates and the Phase 1 Owner has not completed the Required Easement Area Improvements, as of the date of termination of any rights by the Phase 1 Owner to purchase the Phase 2 Parcels, then the Phase 1 Owner shall have sixty
(60) days after its right to purchase the Phase 2 Parcels has been terminated to complete the Required Easement Area Improvements (“Extended Completion Date”) and if, as of such Extended Completion Date, the Phase 1 Owner has not completed
the Required Easement Area Improvements, then, as the sole and exclusive remedy of the Phase 2 Owner for the failure of the Phase 1 Owner to install the Required Easement Area Improvements, the Phase 2 Owner shall have the right, but not the
obligation, to install those portions of the Required Easement Area Improvements which have not been installed by the Phase I Owner in accordance with the provisions set forth below. Prior to exercising any construction rights hereunder, the Phase 2
Owner shall deliver written 

  

 8 

 
notice to the Phase 1 Owner specifying the date the Phase 2 Owner intends to take over the completion of the Required Easement Area Improvements. The Phase 2
Owner shall, as a condition to any entry, comply with the requirements set forth in Sections 2.2.5(b) and (c) above. If the Phase 2 Owner exercises its rights hereunder, then the Phase 1 Owner shall, within thirty (30) days of the presentation of a
statement therefor from the Phase 2 Owner together with mechanic’s lien releases reasonably acceptable to the Phase 1 Owner and certifications from the general contractor for the Phase 2 Owner certifying that the Required Easement Area
Improvements have been installed in accordance with the applicable plans and specification approved by the City, reimburse the Phase 2 Owner for its actual out-of-pocket expenses incurred in installing the Required Easement Area Improvements subject
to the terms of a separate agreement entered into by the Phase 1 Owner and Phase 2 Owner dated January 11, 2000. 
  

	61.	 	MAINTENANCE 

  
 61.1 Maintaining Owners. Subject to Section 3.9 below, and except as provided below in this Section, each Owner shall each maintain the portion of
the Easement Area Improvements situated on its Parcel. Notwithstanding the foregoing, the Owner of Parcel 5 shown on the Final Map will maintain the entire Parcels 5 and 6 Access Driveway until a building permit for construction of a building on
Parcel 6 is issued. From and after issuance of a building permit for Parcel 6, the Owners of Parcels 5 and 6 shall each maintain the portion of the Parcels 5 and 6 Access Driveway situated on their respective Parcels. In addition, the Owner of
Parcel 5 shown on the Final Map will maintain the portion of the Shared Storm Drain Improvements located on Parcels 1 and 6 until a building permit for construction of a building on either Parcel 1 or Parcel 6 is issued. From and after issuance of a
building permit for either Parcel 1 or Parcel 6, the Owner of the Parcel for which the building permit was issued will maintain the Shared Storm Drain Improvements on both Parcels 1 and 6 until a building permit for construction of a building on the
other Parcel is issued. From and after issuance of a building permit for the other Parcel, the Owners of Parcels 1 and 6 will each maintain the portion of the Shared Storm Drain Improvements on their respective Parcels, 
  
 61.2 Maintenance of the Access Driveways. The Owners shall place,
maintain and replace any necessary appropriate directional signs and striping lines, curbs and gutters, and conduct periodic sweeping and debris removal on the Access Driveways. Maintenance work shall also include, without limitation, placing,
keeping in repair, and replacing all paved surfaces and curbs of the Access Driveways in a level, smooth and evenly covered condition with the type of surfacing material originally installed or of similar quality, use and durability. If an Owner
determines that it has become necessary to repave all or a portion of the Access Driveways, such Owner shall undertake such repaving (“Repaying Owner”) and shall give written notice to the other Owners of such 

  

 9 

 
determination (“Repaving Notice”). The Repaving Owner shall give the other Owners at least ten (10) days written notice of the commencement of
repaving work in the Access Driveways. 
  
 61.3 Cost of
Repaving. The Repaving Notice shall include an estimate of the total cost of the repaving work (“Repaving Expenses”) and the Owner of each Parcel shall be obligated to pay one-sixth (1/6th) of the Repaving Expenses. If two (2) or more
Owners dispute the costs set forth in the Repaving Notice, the Repaving Owner shall obtain three (3) bids from reputable contractors for the repaving work, and shall contract with the lowest qualified bidder for the repaving work
(“Contractor”). 
  
 61.4 Necessity of
Repaving. If two (2) or more Owners dispute the necessity of repaving the Access Driveways, the Repaving Owner may either (i) submit the matter of whether such repaving is necessary to arbitration, or (ii) repave the Access Driveways and then
submit the matter of whether the repaving was necessary to arbitration. If the Repaving Owner elects to repave the Access Driveways, and then submits the matter to arbitration and the arbitrator finds that the repaving was necessary, the other
Owners shall reimburse the Repaving Owner pursuant to Section 3.5 of this Declaration, together with a reimbursement of the costs for the arbitration; however, if the arbitrator finds that the repaving was not necessary, the Repaving Owner shall
bear the full cost of the Repaving Expenses. Arbitration proceedings initiated pursuant to this Section 3.4 shall be held in California, in a venue to be mutually agreed upon by the Owners, within thirty (30) days after the election to arbitrate is
made pursuant to the then applicable Commercial Arbitration Rules of the American Arbitration Association; provided, however, that (i) the decision of any such arbitration shall be expressly limited to the issue of the necessity for repaving the
Access Driveways, (ii) there shall be no right of discovery, and each party shall submit supporting material for its position regarding the repaving issue to the arbitrator as the sole admittable evidence. 
  
 61.5 Payment of Repaving Expenses. After the Repaving Owner has
received the final invoice for payment from the Contractor, the Repaving Owner shall bill the other Owners for its pro rata share, and attach a copy of the Contractor’s invoice and appropriate lien waivers and releases (“Invoice”).
The other Owners shall reimburse the Repaving Owner within thirty (30) days of receipt of the Invoice. All Repaving Expenses not paid for when duo shall bear interest at the Default Interest Rate. 
  
 61.6 Maintenance of Storm Drain Improvements. The Owners shall
maintain the Storm Drain Improvements including, but not limited to, cleaning debris out of the drain openings on a regularly scheduled basis and repairing drain pipes as needed. 
  

 10 

 61.7 Maintenance of Utility Improvements. The Owners shall maintain the Utility Improvements
including, but not limited to, inspecting the Utility Improvements on a regularly scheduled basis and repairing the Utility Improvements as needed. 
  
 61.8 Indemnity. Each Owner agrees to defend, indemnify, protect, and hold the other Owners harmless from and against any mechanics, materialmens
and/or laborers liens, and all costs, expenses and liabilities in connection therewith, including reasonable attorneys’ applicable fees and court costs, arising out of the maintenance and operation by each Owner of the Easement Areas, and in
the event that any Parcel shall become subject to any such lien, the defaulting Owner shall promptly cause such lien to be released and discharged of record, either by paying the indebtedness which gave life to such lien or by posting such bond or
other security as shall be required by law to obtain such release and discharge. 
  
 61.9 Failure to Maintain. If any Owner fails to maintain the Easement Area Improvements or the Easement Areas substantially in accordance with standards and practices for managers of similar improvements
(“Defaulting Owner”), any other Owner (“Maintaining Owner”) may notify the Defaulting Owner of its failure to perform its maintenance obligations hereunder, such notice to specifically set forth the maintenance which was not
performed. If, following such notice, the failure to maintain persists for thirty (30) days (or, if such failure cannot be cured within such period, the Defaulting Owner fails to commence to cure within such thirty (30) day period, or thereafter
fails to diligently proceed to complete the cure), the Maintaining Owner shall have the right, but not the obligation to perform the maintenance necessary and/or assume responsibility for maintaining the applicable Easement Area Improvements or the
Easement Areas pursuant to the terms of this Declaration. If the Maintaining Owner performs such maintenance and/or assumes the responsibility of the Defaulting Owner as provided herein, the Defaulting Owner shall be obligated to reimburse the
Maintaining Owner for all expenses incurred in connection with such maintenance. The Maintaining Owner may deliver a bill (“Bill”) to the Defaulting Owner from time to time for costs incurred by performing such maintenance
(“Maintenance Expenses”) plus a ten percent (10%) administrative fee. The Defaulting Owner shall reimburse the Maintaining Owner within ten (10) days of receipt of the Bill. All Maintenance Expenses not paid for when due shall bear
interest at the Default Interest Rate. The remedies provided in this Section are in addition to other remedies pursuant to Article 4. Notwithstanding the foregoing, except in cases of an imminent threat of damage to persons or property or other
emergency, a party shall not be entitled to exercise its self help remedies during the pendency of any arbitration proceedings involving the dispute in question pursuant to the arbitration provisions in Section 43. 
  

 11 

 61.10 Collection. If an Owner fails or refuses at any time to pay its share of any of the Repaving
Expenses or Maintenance Expenses when due, then the Repaving Owner or the Maintaining Owner, as the case may be, may enforce payment pursuant to Article 4 of this Declaration. 
  

	62.	 	REMEDIES 

  
 62.1 Legal Action Generally. If any of the Owners breaches any provision of this Declaration (“Defaulting Owner”), then any other Owner
(“Creditor Owner”) may institute legal action against the Defaulting Owner for specific performance, injunction, declaratory relief, damages, or any other remedy provided by law. All remedies herein or at law shall be cumulative and not
inclusive. As used herein, any reference to rights or remedies “at law” or “under applicable law” shall also include any rights or remedies “in equity.” 
  
 62.2 Lien. Any Creditor Owner shall be entitled to a lien against the
Parcel(s) of the Defaulting Owner, which lien shall be created in accordance with this Section 4.2. 
  
 (a) Creation. A lien authorized by this Section 4.2 shall be created by recording a written instrument (the “Claim of Lien”) in the real
property records of Santa Clara County, California, which (i) references this Declaration by recording number, (ii) alleges a specific breach of this Declaration, (iii) states the amount owed by the Defaulting Owner through the recording date of the
Claim of Lien, (iv) contains a legal description of the Parcel(s) of the Defaulting Owner, and (v) is executed and acknowledged by the Creditor Owner. 
  

(b) Amount. A lien created pursuant to this Section 4.2 shall include (i) the amount stated in the Claim of Lien, (ii) all costs and expenses
incurred in creating and foreclosing such lien (including attorneys’ fees), (iii) all amounts which become due from the Defaulting Owner (or its successors or assigns) to the Creditor Owner after the date the Claim of Lien is recorded, whether
such amounts arise from a continuation of the default alleged in the Claim of Lien or from some other default under this Declaration, and (iv) interest on all of the foregoing at the Default Interest Rate. 
  
 (c) Priority. The priority of a lien created pursuant to this Section
4.2 shall be established solely by reference to the date the Claim of Lien is recorded; provided, that such lien shall, in all instances, be subject to and junior to, and shall in no way impair or defeat the lien or charge of any Mortgagee holding
any mortgage recorded prior to the date of the lien. 
  

 12 

 (d) Extinguishment. If the Defaulting Owner cures its default, and pays all amounts secured by a
lien created pursuant to this Section 4.2, the Creditor Owner shall record an instrument sufficient in form and content to clear title to the Parcel(s) of the Defaulting Owner from the Creditor Owner’s lien. 
  
 62.3 Arbitration of Disputes. 
  
 (a) Disputes Subject to Arbitration. Except as
otherwise provided in Sections 3.4 and 3.9 above, any claims or disputes arising out of or relating to this Declaration shall be settled by neutral binding arbitration before a single arbitrator to be held in accordance with the rules of the
American Arbitration Association applicable to the nature of the dispute in question, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall be licensed practicing
attorney in California with a minimum of ten (10) years’ substantial experience in commercial real estate transactions. Hearings shall be held in California, in such venue as the parties may determine by mutual agreement. 
  
 (b) Demand and Limitations on Claims. Any demand for arbitration must
be made in writing to the other party and to the American Arbitration Association. In no event shall any demand for arbitration be made after the date that the institution of legal proceedings based on such claim, dispute or other matter would be
barred by the applicable statute of limitations. 
  
 (c)
Provisional Remedies. The Owners shall each have the right to file with a court of competent jurisdiction an application for temporary or preliminary injunctive relief, writ of attachment, writ of possession, temporary protective order and/or
appointment of a receiver, if the arbitration award to which the applicant may be entitled may be rendered ineffectual in the absence of such relief, or if there is not other adequate remedy. Any such application shall not act as a waiver of an
Owner’s arbitration rights hereunder. 
  
 (d)
Powers and Duties of the Arbitrator. The arbitrator shall have the power to grant such legal and equitable remedies and award such damages as may be granted or awarded by a judge of the Superior Court of the State of California. The
arbitrator shall prepare and provide to the parties a written decision on all matters which are the subject of the arbitration, including factual findings and the reasons which form the basis of the arbitrator’s decision. The arbitrator shall
not have the power to commit errors of law or legal reasoning and the award maybe vacated or corrected pursuant to California Code of Civil Procedure Section 1286.2 or 1286.6 for any such error. The award of the arbitrator shall be mailed to the
parties no later than thirty (30) days after the close of the arbitration hearing. The 

  

 13 

 
arbitration proceedings shall be reported by a certified shorthand court reporter, and written transcripts of the proceedings shall be prepared and made
available to the parties upon any party’s request 
  
 (e) Discovery. The parties shall have the right to discovery in accordance with California Code of Civil Procedure Sections 1283.5 and 1283.1; provided, however, that the arbitrator’s permission shall not be required to take a
discovery deposition. All discovery disputes shall be resolved by the arbitrator. 
  
 (f) Costs and Fees of the Arbitrator. Costs and fees of the arbitrator shall be borne by the non-prevailing party unless the arbitrator, for good cause, determines otherwise. 
  
 62.4 Injunctive & Declaratory Relief. In the event of any
violation or threatened violation by any Owner of any of the terms and provisions contained herein, in addition to any other remedies provided for in this Declaration, any Owner shall have the right to enjoin such violation or threatened violation
and to bring an action for declaratory relief in a court of competent jurisdiction. 
  
 62.5 Personal Obligation. Each Owner, by acceptance of the deed or other conveyance instrument, of all or a portion of a Parcel or interest therein, shall be deemed to covenant and agree to be personally bound
by this Declaration for so long as such Owner owns such Parcel. Any sum not paid, or other obligation not performed when due, together with interest payable hereunder, and all costs and attorneys’ fees incurred in connection with collection,
shall be the personal obligation of the Person or Persons who were the Owners and/or Permittee(s) of the Parcel at the time the payment or obligation became due. The personal obligation shall not be released by any transfer of the Parcel subsequent
to the date such payment or obligation became due, but such obligation shall run with the land and shall be binding upon any successor Owner. However, upon the conveyance of a Parcel by the Owner, such Owner will not be responsible for any
obligations hereunder with respect to such Parcel that arise after the date of such conveyance. 
  
 62.6 Remedies Cumulative. The remedies provided in this Article 4 are in addition to any remedies available elsewhere in this Declaration. Exercise
of one remedy shall not be deemed to preclude exercise of other remedies for the same default, and all remedies available to Owners may be exercised cumulatively. 
  

	63.	 	INSURANCE 

  

 14 

 63.1 Liability Insurance. Each Owner shall at all times during the term of this Declaration,
maintain or cause to be maintained in hill force and effect a commercial general public liability insurance policy (on an occurrence and a per location basis) insuring against all claims for personal injury, death or property damage occurring upon,
in or about the Owner’s Parcel, with combined single limits of at least Two Million Dollars ($2,000,000.00) per occurrence for the respective Parcel, which insurance shall include broad form blanket contractual coverage covering the
insured’s obligations hereunder. All such insurance policies shall be issued by a financially responsible insurance company or companies authorized to issue insurance policies in the State of California. Notwithstanding anything contained
herein to the contrary, any Owner with a tangible net worth in excess of $100,000,000 may elect to self-insure with respect to the risks described in this Section. Any Owner shall, upon the request of any other Owner, furnish to the other Owner
evidence that the Owner maintains insurance in accordance with the terms of this Declaration or evidence that such Owner has the required net worth. In no event shall the limits of any coverage maintained by any Owner or pursuant to this Declaration
be considered as limiting such Owner’s liability under this Declaration. 
  
 63.2 Blanket Insurance. Any insurance required to be carried pursuant to this Article may be carried under a policy or policies covering other liabilities and locations of an Owner; provided, however, that such
policy or policies apply to the Parcels required to be insured by this Article in an amount not less than the amount of insurance required to be carried by such Owner with respect thereto, pursuant to this Article. 
  

	64.	 	MISCELLANEOUS 

  
 64.1 Notices. Any notice, payment, demand, offer, or communication required or permitted to be given by any provision of this Declaration shall be
deemed to have been sufficiently given or served for all purposes if sent by registered or certified mail (return receipt requested), postage and charges prepaid, or by Federal Express or other reputable overnight delivery service requiring a
signature upon receipt, addressed as follows: 
  

			
	To Phase 1 Owner:	 	 1931 Monterey, L.L.C.
 c/o Opus West
Corporation
 6160 Stoneridge Mall Road, Suite 360
 Pleasanton, CA
94588
 Attn: John Greer
 Telephone No. (925) 463-9254

Telecopier (925) 463-9368

  

 15 

			
	With a copy to:	 	 Opus Corporation
 2415 East Camelback Road, Suite
800
 Phoenix, AZ 85016-4201
 Attn: Legal Counsel
 Telephone: (602) 468-7091
 Telecopier: (602) 468-7045

		
	To Phase 2 Owner:	 	 Pepper Lane - Monterey Road, LLC
 c/o Pepper Lane
Properties
 800 El Camino Real West, #180
 Mountain View, CA
94040
 Attn: Myra Reinhard
 Telephone: (650) 903-2262

Telecopier: (650) 903-2220

		
	With a copy to:	 	 Pillsbury, Madison & Sutro, LLP
 725 South
Figueroa Street, Suite 1200
 Los Angeles, CA 90017
 Attn: John W.
Whitaker, Esq.
 Telephone: (213) 488-7328
 Telecopier: (213)
629-1033

  
 Any such notice shall be deemed to be
given on the date on which it is received or receipt thereof is refused. A successor Owner may require notices to be delivered to such successor Owner by delivering a notice, in writing, notifying the then current Owners of such addresses in
accordance herewith. 
  
 64.2 Binding Effect. All of the
limitations, covenants, conditions, easements, and restrictions contained herein shall attach to and run with the Parcels, and shall, except as otherwise set forth herein, benefit or be binding upon the successors and assigns of the respective
Owners. This Declaration and all the terms, covenants and conditions herein contained shall be enforceable as mutual, equitable servitudes in favor of said Parcels and any portion thereof, shall create rights and obligations as provided herein
between the respective Owners and shall be covenants running with the land. Every person who now or in the future owns or acquires any right, title or interest in or to any Parcel or portion thereof shall be conclusively deemed to have consented to
and agreed to every covenant, restriction, provision, condition and right contained in this Declaration, whether or not the instrument conveying such interest refers to this Declaration. 
  
 64.3 Attorneys’ Fees. In the event of any action (which includes arbitration proceedings) between the Owners
hereto for breach of or to enforce any provision 

  

 16 

 
or right hereunder, the nonprevailing Owner in such action shall pay to the prevailing Owner all costs and expenses expressly including, but not limited to,
reasonable attorneys’ fees incurred by the prevailing Owner in connection with such action. 
  
 64.4 Breach - Effect on Mortgagee and Right to Cure. Breach of any of the covenants or restrictions contained in this Declaration shall not defeat
or render invalid the lien of any Mortgage made in good faith, but all of the foregoing provisions, restrictions, and covenants shall be binding and effective against any Owner of any portion of the Parcels, or any part thereof, who acquires title
by foreclosure or trustee’s sale or by deed in lieu of foreclosure or trustee’s sale. The Mortgagee of any Owner in default hereunder shall be entitled to receive notice of said default, in the same manner that other notices are required
to be given under this Declaration; provided, however, that said Mortgagee shall have, prior to the time of the default, notified the Owner hereto giving said notice of default of the Mortgagee’s mailing address. In the event that any notice
shall be given of the default of an Owner and such Defaulting Owner has failed to cure or continence to cure such default as provided in this Declaration then and in that event the Owner giving such notice of default covenants to give such Mortgagee
(which has previously given the above stated notice to such Owner) under any Mortgage affecting the Parcel of the Defaulting Owner an additional notice given in the manner provided above, that the Defaulting Owner has failed to cure any such default
and such Mortgagee shall have thirty (30) days after said additional notice to cure any such default, or, if such default carrot be cured within thirty (30) days, diligently to commence curing within such time and diligently pursue such cure to
completion within a reasonable time thereafter. Giving of any notice of default or the failure to deliver a copy to any Mortgagee shall in no event create any liability on the part of the Owner so declaring a default. 
  
 64.5 Modification. No modification, waiver, amendment, discharge, or
change of this Declaration shall be valid unless the same is in writing and signed by all Owners. Any change, modification, amendment or rescission which is made without the written consent of all Owners shall be null and void and of no
effect. 
  
 64.6 Severability. In the event any
term, covenant; condition, provision, or agreement contained herein is held to be invalid, void, or otherwise unenforceable, by any court of competent jurisdiction, such holding shall in no way affect the validity or enforceability of any other
term, covenant, condition, provision, or agreement contained herein. 
  
 64.7 Governing Law. This Declaration and the obligations of the Owners hereunder shall be interpreted, construed, and enforced in accordance with the internal laws of the State of California without regard to
choice of law rules. 
  

 17 

 64.8 Terminology. All personal pronouns used in this Declaration, whether used in the masculine,
feminine, or neuter gender, shall include all other genders; the singular shall include the plural and vice versa. 
  
 64.9 Captions. Article and section titles or captions contained herein are inserted as a matter of convenience and for reference, and in no way
define, limit, extend, or describe the scope of this Declaration or any provisions hereof. 
  
 64.10 Not a Public Dedication. Nothing herein contained shall be deemed to be a gift or dedication of any portion of the Parcels to the general
public or for the general public or for any public purpose whatsoever, it being the intention of the Owners hereto that this Declaration shall be strictly limited to and for the purposes herein expressed. 
  
 64.11 Entire Declaration. This Declaration and the exhibits hereto
contain all the representations and the entire agreement between the Owners with respect to the subject matter hereof Any prior correspondence, memoranda or agreements are superseded in total by this Declaration and Exhibits hereto. The provisions
of this Declaration shall be construed as a whole according to their common meaning and not strictly for or against any Owner. 
  
 64.12 Duration. Thus Declaration and each term, easement, covenant, restriction and undertaking of this Declaration will remain in effect for a
term of ninety-nine (99) years from the recordation data hereto and will automatically be renewed for successive ten (10) year periods unless a majority of the Owners elect by written notice to the others not to so renew. The easements granted in
Section 2.1 shall survive the termination of this Declaration. 
  
 64.13 Waiver of Default. No waiver of any default by any Owner to this Declaration shall be implied from any omission by any other Owner to take any action in respect of such default if such default continues or is repeated. No
express written waiver of any default shall affect any default or cover any period of time other than the default and period of time specified in such express waiver. One or more written waivers of any default in the performance of any term,
provision or covenant contained in this Declaration shall not be deemed to be a waiver of any subsequent default in the performance of the same term, provision or covenant or any other term, provision or covenant contained in this Declaration. The
consent or approval by any Owner to or of any act or request by any other Owner requiring consent or approval shall not be deemed to waive or render unnecessary the consent to or approval of any subsequent similar acts or requests. The rights and
remedies given to the Owners by this Declaration shall be deemed to be cumulative and no one of such rights and remedies shall be exclusive of any of the others, and the exercise of one such right or remedy by an Owner shall not impair such
Owner’s standing to exercise any other right or remedy. 
  

 18 

 64.14 Assignment of Rights. Subject to the provisions of Section 2.7 of this Declaration, upon
conveyance of a Parcel by an Owner, the transferring Owner shall be automatically released from all of its obligations arising after the date of such transfer. 
  
 [Remainder of page intentionally left blank] 
  

 19 

 64.15 Breach Shall Not Permit Termination. It is expressly agreed that no breach of this
Declaration shall entitle any Owner to cancel, rescind, or otherwise terminate this Declaration, but such limitation shall not affect in any manner any of the rights or remedies which the Owners may have by reason of any breach of this
Declaration. 
  
 IN WITNESS WHEREOF, this Declaration has
been made and executed as of the date first above written. 
  

									
	PHASE 1 OWNER:	 	 	 	 PHASE 2 OWNER:

			
	1931 MONTEREY, L.L.C., a Delaware limited liability company	 	 	 	PEPPER LANE - MONTEREY ROAD, LLC, a California limited liability company
					
	By:	 	 /s/ Thomas W. Roberts
	 	 	 	By:	 	 /s/ Myra Reinhard

	 	 	
	 	 	 	 	 	

	 Name:
	 	 Thomas W. Roberts
	 	 	 	 Name:
	 	 Myra Reinhard

	 Title:
	 	 President
	 	 	 	 Title:
	 	 Managing Member

  

					
	 STATE OF ARIZONA
	 	 )
	  	 
	 	 	 )
	  	 
	 COUNTY OF MARICOPA
	 	 )
	  	 

  
 On 1/12/00 before me,
Kim A. Hennis, personally appeared Thomas W. Roberts personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name(s) are/is subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  
 Signature /s/ Kim A. Hennis (SEAL) 
  

					
	 STATE OF CALIFORNIA
	 	 )
	  	 
	 	 	 )
	  	 
	 COUNTY OF SANTA CLARA
	 	 )
	  	 

  
 On 1/13/00 before me,
D. Everard, personally appeared Myra Reinhard personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name(s) are/is subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  
 Signature /s/ D. Everard (SEAL) 
  

 EXHIBIT ‘A-1’ 
  
 LEGAL DESCRIPTION 
  
 Phase 1 Lots 
  
 REAL PROPERTY situated in the City of San Jose, County of Santa Clara, State of California described as follows: 
  
 Lots 2, 3, 4, and 5 of Tract Map No. 9222, as said map was filed for record
on December 22, 1999 in Hook 723 of Maps, at Pages 1 through 4, Santa Clara County Records. 
  

 EXHIBIT ‘A-2’ 
  
 LEGAL DESCRIPTION  
  
 Phase 2 Lots 
  
 REAL PROPERTY situated in the City of San Jose, County of Santa Clara, State of California described as follows: 
  
 Lots 1 and .6 of Tract Map No. 9222, as said map was filed for record on
December 22, 1999 in Book 723 of Maps, at Pages 1 through 4, Santa Clara County Records. 
  

 2Registration Rights Agreement

 Exhibit 10.43 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 Dated as of December 19, 2003 
  
 Among 
  
 SBA COMMUNICATIONS CORPORATION, 
  
 SBA TELECOMMUNICATIONS, INC. 
  
 and 
  
 LEHMAN BROTHERS INC., 
 CITIGROUP GLOBAL MARKETS INC., 
 DEUTSCHE BANK SECURITIES INC., 
 MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED and 
 TD SECURITIES (USA) INC. 
  
 as Initial Purchasers 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	1.	 	Definitions	  	3
			
	2.	 	Securities Subject to This Agreement	  	4
			
	3.	 	Registered Exchange Offer	  	4
			
	4.	 	Shelf Registration	  	6
			
	5.	 	Additional Interest	  	6
			
	6.	 	Registration Procedures	  	7
			
	7.	 	Registration Expenses	  	13
			
	8.	 	Indemnification and Contribution	  	13
			
	9.	 	Rule 144A	  	16
			
	10.	 	Participation in Underwritten Registrations	  	16
			
	11.	 	Selection of Underwriters	  	16
			
	12.	 	Miscellaneous	  	16

 This Registration Rights Agreement (this “Agreement”) is made and entered into as of
December 19, 2003 by and among SBA Communications Corporation, a Florida corporation (the “Company”), SBA Telecommunications, Inc., a Florida corporation (together with the Company, the “Issuers”) and Lehman
Brothers Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and TD Securities (USA) Inc. (each an “Initial Purchaser”). 
  
 This Agreement is entered into in connection with the Purchase Agreement,
dated December 8, 2003, by and among the Issuers and the Initial Purchasers (the “Purchase Agreement”), which provides for the sale by the Issuers to the Initial Purchasers of $402,024,000 aggregate principal amount at maturity of
the Issuers’ 93⁄4% Senior Discount Notes due 2011 (the “Notes”). In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Issuers have agreed to provide the registration rights set forth in this
Agreement for the benefit of the Initial Purchasers and their direct and indirect transferees and assigns. The execution and delivery of this Agreement is a condition to the Initial Purchasers’ obligations to purchase the Notes under the
Purchase Agreement. Capitalized terms used but not specifically defined herein have the respective meanings ascribed thereto in the Purchase Agreement. 
  
 The parties hereby agree as follows: 
  
 1. Definitions. As used in this Agreement, the following capitalized terms shall have the following meanings: 
  
 Additional Interest: As defined in Section 5(a)
hereof. 
  
 Broker-Dealer: Any broker or
dealer registered under the Exchange Act. 
  
 Closing Date: The date on which the Notes were sold to the Initial Purchasers. 
  
 Commission: The Securities and Exchange Commission. 
  
 Consummate: A registered Exchange Offer shall be deemed “Consummated” for purposes of this
Agreement upon the occurrence of (i) the filing and effectiveness under the Securities Act of the Exchange Offer Registration Statement relating to the New Notes to be issued in the Exchange Offer, (ii) the maintenance of such Registration Statement
continuously effective and the keeping of the Exchange Offer open for a period not less than the minimum period required pursuant to Section 3(b) hereof and (iii) the delivery by the Issuers of the New Notes in the same aggregate principal amount at
maturity as the aggregate principal amount at maturity of Transfer Restricted Notes that were validly tendered by Holders thereof pursuant to the Exchange Offer. 
  
 Effectiveness Target Date: As defined in Section 5(a) hereof. 
  
 Exchange Act: The Securities Exchange Act of 1934, as
amended. 
  
 Exchange Offer: The
registration by the Issuers under the Securities Act of the New Notes pursuant to a Registration Statement pursuant to which the Issuers offer the Holders of all outstanding Transfer Restricted Notes the opportunity to exchange all such outstanding
Transfer Restricted Notes held by such Holders for New Notes in an aggregate principal amount at maturity equal to the aggregate principal amount at maturity of the Transfer Restricted Notes tendered in such exchange offer by such Holders.

  
 Exchange Offer Registration Statement:
The Registration Statement relating to the Exchange Offer, including the Prospectus which forms a part thereof. 
  
 Exempt Resales: The transactions in which the Initial Purchasers propose to sell the Notes to certain “qualified institutional
buyers,” as such term is defined in Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions meeting the requirements of Rule 903 or 904 of Regulation S under the Securities Act. 
  
 Holders: As defined in Section 2(b) hereof.

  

 3 

 Indenture: The Indenture, dated as of December 19, 2003, between the Issuers and
U.S. Bank N.A., as trustee (the “Trustee”), pursuant to which the Notes are to be issued, as such Indenture is amended or supplemented from time to time in accordance with the terms thereof. 
  
 Initial Purchasers: Lehman Brothers Inc., Citigroup
Global Markets Inc., Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and TD Securities (USA) Inc. 
  
 NASD: National Association of Securities Dealers, Inc. 
  
 New Notes: The notes to be issued pursuant to the Indenture in the Exchange Offer. 
  
 Participant: As defined in Section 8(a) hereof.

  
 Person: An individual, partnership,
corporation, limited liability company, trust or unincorporated organization, or a government or agency or political subdivision thereof. 
  
 Prospectus: The prospectus included in a Registration Statement, as amended or supplemented by any prospectus supplement and by all
other amendments thereto, including post-effective amendments, and all material incorporated by reference into such Prospectus. 
  
 Registration Default: As defined in Section 5(a) hereof. 
  
 Registration Statement: Any registration statement of the Issuers relating to (a) an offering of New
Notes pursuant to an Exchange Offer or (b) the registration for resale of Transfer Restricted Notes pursuant to the Shelf Registration Statement, which is filed pursuant to the provisions of this Agreement, in either case, including the Prospectus
included therein, all amendments and supplements thereto (including post-effective amendments) and all exhibits and material incorporated by reference therein. 
  

Securities Act: The Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
  
 Shelf Filing Deadline: As defined in Section 4(a)
hereof. 
  
 Shelf Registration Statement:
As defined in Section 4(a) hereof. 
  
 TIA: The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb), as amended. 
  
 Transfer Restricted Notes: Each Note, until the earliest to occur of (a) the date on which such Note has been exchanged by a person
other than a Broker-Dealer for a New Note in the Exchange Offer, (b) following the exchange by a Broker-Dealer in the Exchange Offer of a Note for a New Note, the date on which such New Note is sold to a purchaser who receives from such
Broker-Dealer on or prior to the date of such sale a copy of the prospectus contained in the Exchange Offer Registration Statement, (c) the date on which such Note has been effectively registered under the Securities Act and disposed of in
accordance with the Shelf Registration Statement or (d) the date on which such Note is eligible to be distributed to the public pursuant to Rule 144 under the Securities Act. 
  
 Underwritten Registration or Underwritten Offering: A registration in which securities of an
Issuer are sold to an underwriter for reoffering to the public. 
  
 2. Securities Subject to This Agreement. 
  
 (a) Transfer Restricted Notes. The securities entitled to the benefits of this Agreement are the Transfer Restricted Notes. 
  
 (b) Holders of Transfer Restricted Notes. A Person is deemed to be a holder of Transfer Restricted
Notes (each such Person, a “Holder”) whenever such Person owns Transfer Restricted Notes. 
  
 3. Registered Exchange Offer. 
  
 (a) Unless the Exchange Offer shall not be permissible under applicable law or Commission policy (after the procedures set forth in
Section 6(a) below have been complied with) or one of the events set forth 

  

 4 

 
in Section 4(a)(ii) has occurred, the Issuers shall (i) use their reasonable best efforts to cause to be filed with the Commission promptly after the Closing
Date, but in no event later than 120 days after the Closing Date, a Registration Statement under the Securities Act relating to the New Notes and the Exchange Offer, (ii) use their reasonable best efforts to cause such Registration Statement to
become effective no later than 270 days after the Closing Date, (iii) in connection with the foregoing, file (A) all pre-effective amendments to such Registration Statement as may be necessary in order to cause such Registration Statement to become
effective, (B) if applicable, a post-effective amendment to such Registration Statement pursuant to Rule 430A under the Securities Act and (C) cause all necessary filings in connection with the registration and qualification of the New Notes to be
made under the Blue Sky laws of such jurisdictions as are necessary to permit Consummation of the Exchange Offer, and (iv) unless the Exchange Offer would not be permitted by applicable law or Commission policy, the Issuers will commence the
Exchange Offer and use their reasonable best efforts to cause the Exchange Offer to be Consummated on the earliest practicable date after the Exchange Offer Registration Statement has become effective, but in no event later than 300 days after the
Closing Date and (v) deliver the Exchange Notes in the same aggregate principal amount at maturity as the aggregate principal amount at maturity of Transfer Restricted Securities that were validly tendered by Holders thereof pursuant to the Exchange
Offer. The Exchange Offer shall be on the appropriate form permitting registration of the New Notes to be offered in exchange for the Transfer Restricted Notes and to permit resales of New Notes held by Broker-Dealers as contemplated by Section 3(c)
below. The 120, 270 and 300 day periods referred to in (i), (ii) and (iv) of this Section 3(a) shall not include any period during which the Issuers are pursuing a Commission ruling pursuant to Section 6(a)(i) below. 
  
 (b) Each of the Issuers shall use its reasonable best
efforts to cause the Exchange Offer Registration Statement to be effective continuously and shall keep the Exchange Offer open for a period of not less than the minimum period required under applicable federal and state securities laws to Consummate
the Exchange Offer; provided, however, that in no event shall such period be less than 20 business days. The Issuers shall cause the Exchange Offer to comply in all material respects with all applicable federal and state securities laws. No
securities other than the New Notes shall be included in the Exchange Offer Registration Statement. 
  
 (c) The Issuers shall indicate in a “Plan of Distribution” section contained in the Prospectus contained in the Exchange Offer
Registration Statement that any Broker-Dealer who holds Notes that are Transfer Restricted Notes and that were acquired for its own account as a result of market-making activities or other trading activities (other than Transfer Restricted Notes
acquired directly from an Issuer), may exchange such Notes pursuant to the Exchange Offer; provided, however, such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the Securities Act and must, therefore, deliver a
prospectus meeting the requirements of the Securities Act in connection with any resales of the New Notes received by such Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may be satisfied by the delivery by such
Broker-Dealer of the Prospectus contained in the Exchange Offer Registration Statement. Such “Plan of Distribution” section shall also contain all other information with respect to such resales by Broker-Dealers that the Commission may
require in order to permit such resales pursuant thereto, but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the amount of New Notes held by any such Broker-Dealer except to the extent required by the
Commission. 
  
 Each of the Issuers shall use its reasonable best
efforts to keep the Exchange Offer Registration Statement continuously effective, supplemented and amended as required by the provisions of Section 6(c) below to the extent necessary to ensure that it is available for resales of New Notes acquired
by Broker-Dealers for their own accounts as a result of market-making activities or other trading activities and to ensure that it conforms with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the
Commission as announced from time to time, for a period of 180 days from the date on which the Exchange Offer Registration Statement is declared effective. 
  
 The Issuers shall provide sufficient copies of the latest version of such Prospectus to Broker-Dealers promptly upon request at any time during such
180-day period in order to facilitate such resales. 
  

 5 

 4. Shelf Registration. 
  
 (a) Shelf Registration. If (i) the Issuers are not required to file an Exchange Offer Registration
Statement or to Consummate the Exchange Offer because the Exchange Offer is not permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a) below have been complied with) or (ii) if any Holder of Transfer
Restricted Notes that is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) or an institutional “accredited investor” (as defined in Rule 501(A)(1), (2), (3) or (7) under the Securities Act)
shall notify the Issuers at least 30 business days prior to the Consummation of the Exchange Offer (A) that such Holder is prohibited by applicable law or Commission policy from participating in the Exchange Offer or (B) that such Holder may not
resell the New Notes acquired by it in the Exchange Offer to the public without delivering a prospectus and that the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales by such Holder or
(C) that such Holder is a Broker-Dealer and holds Notes acquired directly from an Issuer or one of its affiliates, then such Issuer shall in lieu of, or in the event of (ii) above, in addition to, effecting the registration of the New Notes pursuant
to the Exchange Offer Registration Statement use its reasonable best efforts to: 
  
 (x) cause to be filed a shelf registration statement pursuant to Rule 415 under the Securities Act, which may be an amendment to the
Exchange Offer Registration Statement (in either event, the “Shelf Registration Statement”), on or prior to the earlier to occur of (1) the 60th day after the date on which the Issuers determines that they are not required to file
the Exchange Offer Registration Statement or (2) the 60th day after the date on which the Issuers receive notice from a Holder of Transfer Restricted Notes as contemplated by clause (ii) above (such earlier date being the “Shelf Filing
Deadline”), which Shelf Registration Statement shall provide for resales of all Transfer Restricted Notes the Holders of which shall have provided the information required pursuant to Section 4(b) hereof; and 
  
 (y) cause such Shelf Registration Statement to be declared
effective by the Commission on or before the later of 60 days after the Shelf Filing Deadline or 270 days after the Closing Date. 
  
 Each of the Issuers shall use its reasonable best efforts to keep such Shelf Registration Statement continuously effective, supplemented and amended as required by the
provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available for resales of Notes by the Holders of Transfer Restricted Notes entitled to the benefit of this Section 4(a) and to ensure that it conforms with the
requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, for a period ending on the earlier of (a) the second anniversary of the Closing Date and (b) the date on
which all Transfer Restricted Notes covered by such Shelf Registration Statement shall have been sold pursuant thereto. 
  
 (b) Provision by Holders of Certain Information in Connection with the Shelf Registration Statement. No Holder of Transfer
Restricted Notes may include any of its Transfer Restricted Notes in any Shelf Registration Statement pursuant to this Agreement unless and until such Holder furnishes to the Issuers in writing, within 10 days after receipt of a request therefor,
such information as the Issuers may reasonably request for use in connection with any Shelf Registration Statement or Prospectus or preliminary Prospectus included therein. No Holder of Transfer Restricted Notes shall be entitled to Additional
Interest pursuant to Section 5 hereof unless and until such Holder shall have used its best efforts to provide all such reasonably requested information. Each Holder as to which any Shelf Registration Statement is being effected agrees to furnish
promptly to the Issuers all information required to be disclosed in order to make the information previously furnished to the Issuers by such Holder not materially misleading. 
  
 5. Additional Interest 
  
 (a) If (i) any of the Registration Statements required by this Agreement is not filed with the Commission on or prior to the date
specified for such filing in this Agreement, (ii) any of such Registration Statements has not been declared effective by the Commission on or prior to the date specified for such effectiveness in this Agreement (the “Effectiveness Target
Date”), (iii) the Exchange Offer has not been 

  

 6 

 
Consummated within 30 days after the Effectiveness Target Date with respect to the Exchange Offer Registration Statement or (iv) any Registration Statement
required by this Agreement is filed and declared effective but shall thereafter cease to be effective or to be usable in connection with resales of Transfer Restricted Notes without being succeeded within two business days by a post-effective
amendment to such Registration Statement that cures such failure and that is itself immediately declared effective (each such event referred to in clauses (i) through (iv), a “Registration Default”), additional cash interest
(“Additional Interest”) shall accrue to each Holder of the Transfer Restricted Notes adversely affected by the Registration Default from and during the continuance of the Registration Default in an amount equal to $.05 per week per $1,000
of the principal amount at maturity of Transfer Restricted Notes held by such Holder. The amount of Additional Interest will increase by an additional $.05 per week per $1,000 of the principal amount at maturity of Transfer Restricted Notes with
respect to any period in which the Registration Default has continued for more than 90 days until all Registration Defaults have been cured, up to a maximum amount of Additional Interest for all Registration Defaults of $.50 per week per $1,000 of
the principal amount of Transfer Restricted Notes. All accrued Additional Interest shall be paid to Holders by the Issuers in the same manner as interest is paid under the Notes (assuming that the Notes have reached the Full Accretion Date (as
defined in the Indenture)). Following the cure of all Registration Defaults relating to any particular Transfer Restricted Notes, the accrual of Additional Interest with respect to such Transfer Restricted Notes will cease. 
  
 All obligations of the Issuers set forth in the preceding paragraph that have
accrued and are outstanding with respect to any Transfer Restricted Note at the time such security ceases to be a Transfer Restricted Note shall survive until such time as all such obligations with respect to such Transfer Restricted Note shall have
been satisfied in full. 
  
 (b) The Issuers shall
notify the Trustee within one business day after each and every date on which an event occurs in respect of which Additional Interest is required to be paid. Additional Interest shall be paid by depositing Additional Interest with the Trustee, in
trust, for the benefit of the Holders of the Notes, on or before the applicable Interest Payment Date (as defined in the Notes) (whether or not any payment other than Additional Interest is payable on such Notes), in immediately available funds in
sums sufficient to pay the Additional Interest then due to such Holders. Each obligation to pay Additional Interest shall be deemed to accrue from the applicable date of the occurrence of the Registration Default. 
  
 6. Registration Procedures. 
  
 (a) Exchange Offer Registration Statement. In
connection with the Exchange Offer, each of the Issuers shall comply with all of the provisions of Section 6(c) below, shall use its reasonable best efforts to effect such exchange to permit the sale of Transfer Restricted Notes being sold in
accordance with the intended method or methods of distribution thereof and shall comply with the following provisions: 
  
 (i) If in the reasonable opinion of counsel to the Issuers there is a question as to whether the Exchange Offer is permitted by applicable
law, the Issuers hereby agree to seek a no-action letter or other favorable decision from the Commission allowing the Issuers to Consummate an Exchange Offer for such Notes. The Issuers hereby agree to pursue the issuance of such a decision to the
Commission staff level but shall not be required to take commercially unreasonable action to effect a change of Commission policy. The Issuers hereby agree, however, to (A) participate in telephonic conferences with the Commission, (B) deliver to
the Commission staff an analysis prepared by counsel to the Issuers setting forth the legal bases, if any, upon which such counsel has concluded that such an Exchange Offer should be permitted and (C) diligently pursue a resolution (which need not
be favorable) by the Commission staff of such submission. 
  
 (ii) As a condition to its participation in the Exchange Offer pursuant to the terms of this Agreement, each Holder of Transfer Restricted Notes shall furnish, upon the request of the Issuers, prior to the
Consummation thereof, a written representation to the Issuers (which may be contained in the letter of transmittal contemplated by the Exchange Offer Registration Statement) to the effect that 

  

 7 

 
(A) it is not an affiliate of the Issuers, (B) it is not engaged in, and does not intend to engage in, and has no arrangement or understanding with any
person to participate in, a distribution of the New Notes to be issued in the Exchange Offer and (C) it is acquiring the New Notes in its ordinary course of business. In addition, all such Holders of Transfer Restricted Notes shall otherwise
cooperate in the Issuers’ preparations for the Exchange Offer. Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Exchange Offer to participate in a distribution of the securities to be acquired in
the Exchange Offer (1) could not under Commission policy as in effect on the date of this Agreement rely on the position of the Commission enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation
(available May 13, 1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar no-action letters (including Brown & Wood LLP (available February 7, 1997), and any no-action letter obtained
pursuant to clause (i) above) and (2) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with a secondary resale transaction and that such a secondary resale transaction should be covered by an
effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K if the resales are of New Notes obtained by such Holder in exchange for Notes acquired by such Holder
directly from the Issuers. 
  
 (iii) Prior to the
effectiveness of the Exchange Offer Registration Statement, to the extent required by the Commission, the Issuers shall provide a supplemental letter to the Commission (A) stating that the Issuers are registering the Exchange Offer in reliance on
the position of the Commission enunciated in Exxon Capital Holdings Corporation (available May 13, 1988), Morgan Stanley and Co., Inc. (available June 5, 1991), Brown & Wood LLP (available February 7, 1997) and, if
applicable, any no-action letter obtained pursuant to clause (i) above and (B) including a representation that the Issuers have not entered into any arrangement or understanding with any Person to distribute the New Notes to be received in the
Exchange Offer and that, to the best of each of the Issuer’s information and belief, each Holder participating in the Exchange Offer is acquiring the New Notes in its ordinary course of business and has no arrangement or understanding with any
Person to participate in the distribution of the New Notes received in the Exchange Offer. 
  
 (b) Shelf Registration Statement. In connection with the Shelf Registration Statement, the Issuers shall comply with all the
provisions of Section 6(c) below and shall use their reasonable best efforts to effect such registration to permit the sale of the Transfer Restricted Notes being sold in accordance with the intended method or methods of distribution thereof, and
pursuant thereto the Issuers will prepare and file with the Commission a Registration Statement relating to the registration on any appropriate form under the Securities Act, which form shall be available for the sale of the Transfer Restricted
Notes in accordance with the intended method or methods of distribution thereof within the time periods and otherwise in accordance with the provisions hereof. 
  

(c) General Provisions. In connection with any Registration Statement and any Prospectus required by this Agreement to permit
the sale or resale of Transfer Restricted Notes (including, without limitation, any Registration Statement and the related Prospectus required to permit resales of Notes by Broker-Dealers), each of the Issuers shall: 
  
 (i) use its reasonable best efforts to keep such
Registration Statement continuously effective and provide all requisite financial statements for the period specified in Section 3 or 4 of this Agreement, as applicable; upon the occurrence of any event that would cause any such Registration
Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and usable for resale of Transfer Restricted Notes during the period required by this Agreement, the Issuers shall file
promptly an appropriate amendment to such Registration Statement, in the case of clause (A), correcting any such misstatement or omission, and, in the case of either clause (A) or (B), use its reasonable best efforts to cause such amendment to be
declared effective and such Registration Statement and the related Prospectus to become usable for their intended purpose(s) as soon as practicable thereafter; 
  

 8 

 (ii) prepare and file with the Commission such amendments and post-effective amendments
to the Registration Statement as may be necessary to keep the Registration Statement effective for the applicable period set forth in Section 3 or 4 hereof, as applicable, or such shorter period as will terminate when all Transfer Restricted Notes
covered by such Registration Statement have been sold; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and to comply fully with the
applicable provisions of Rules 424 and 430A under the Securities Act in a timely manner; and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during the
applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in such Registration Statement or supplement to the Prospectus; 
  
 (iii) in the case of a Shelf Registration Statement, and for so long as the Issuers are required to keep
such Shelf Registration Statement effective, advise the underwriter(s), if any, and selling Holders promptly and, if requested by such Persons, confirm such advice in writing, (A) when the Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and, with respect to any Registration Statement or any post-effective amendment thereto, when the same has become effective, (B) of any request by the Commission for amendments to the Registration Statement or amendments or
supplements to the Prospectus or for additional information relating thereto, (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement under the Securities Act or of the suspension by any
state securities commission of the qualification of the Transfer Restricted Notes for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes, or (D) of the existence of any fact or the happening
of any event that makes any statement of a material fact made in the Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated by reference therein untrue, or that requires the making of any additions
to or changes in the Registration Statement or the Prospectus in order to make the statements therein not misleading. If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration Statement, or any state
securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted Notes under state securities or Blue Sky laws, each of the Issuers shall use its
reasonable best efforts to obtain the withdrawal or lifting of such order at the earliest possible time; 
  
 (iv) in the case of a Shelf Registration Statement, furnish to each of the selling or exchanging Holders and each of the underwriter(s),
if any, before filing with the Commission, copies of any Registration Statement or any Prospectus included therein or any amendments or supplements to any such Registration Statement or Prospectus (including all documents incorporated by reference
after the initial filing of such Registration Statement, if any), which documents will be subject to the review of such Holders and underwriter(s), if any, for a period of at least five business days, and the Issuers will not file any such
Registration Statement or Prospectus or any amendment or supplement to any such Registration Statement or Prospectus (including all such documents incorporated by reference) to which selling Holders of a majority in aggregate principal amount of
Transfer Restricted Notes covered by such Registration Statement or the underwriter(s), if any, shall reasonably object within five business days after the receipt thereof. A selling Holder or underwriter, if any, shall be deemed to have reasonably
objected to such filing if such Registration Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains a material misstatement or omission; 
  
 (v) in the case of a Shelf Registration Statement, promptly prior to the filing of any document that is to
be incorporated by reference into a Registration Statement or Prospectus, if any, provide copies of such document to the selling Holders and to the underwriter(s), if any, make the Issuers’ representatives available for discussion of such
document and other customary due diligence matters, and include such information in such document prior to the filing thereof as such selling Holders or underwriter(s), if any, reasonably may request; 
  

 9 

 (vi) in the case of a Shelf Registration Statement, subject to an express agreement to
keep such information confidential, make available at reasonable times for inspection by the selling Holders, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney or accountant retained by such
selling Holders or any of the underwriter(s), all financial and other records, pertinent corporate documents and properties of each of the Issuers and cause each of the Issuer’s officers, directors, managers and employees to supply all
information reasonably requested by any such Holder, underwriter, attorney or accountant in connection with such Registration Statement subsequent to the filing thereof and prior to its effectiveness; 
  
 (vii) in the case of a Shelf Registration Statement, if
requested by any selling Holders or the underwriter(s), if any, promptly incorporate in any Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling Holders and
underwriter(s), if any, may reasonably request to have included therein, including, without limitation, information relating to the “Plan of Distribution” of the Transfer Restricted Notes, information with respect to the principal amount
of Transfer Restricted Notes being sold to such underwriter(s), the purchase price being paid therefor and any other terms of the offering of the Transfer Restricted Notes to be sold in such offering, and make all required filings of such Prospectus
supplement or post-effective amendment as soon as practicable after the Issuers are notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment; 
  
 (viii) in the case of a Shelf Registration Statement, furnish, upon request, to each selling Holder and each
of the underwriter(s), if any, without charge, at least one copy of the Registration Statement, as first filed with the Commission, and of each amendment thereto, including all documents incorporated by reference therein, if any, and all exhibits
(including exhibits incorporated therein by reference); 
  
 (ix) in the case of a Shelf Registration Statement, deliver to each selling Holder and each of the underwriter(s), if any, without charge, as many copies of the Prospectus (including each preliminary prospectus) and
any amendment or supplement thereto as such Persons reasonably may request; the Issuers hereby consent to the use of the Prospectus and any amendment or supplement thereto by each of the selling Holders and each of the underwriter(s), if any, in
connection with the offering and the sale of the Transfer Restricted Notes covered by the Prospectus or any amendment or supplement thereto; 
  
 (x) in the case of a Shelf Registration Statement, enter into such agreements (including an underwriting agreement in a form customary for
similar transactions) and make such representations and warranties, and take all such other actions in connection therewith, in order to expedite or facilitate the disposition of the Transfer Restricted Notes pursuant to any Registration Statement
contemplated by this Agreement, all to such extent as may be requested by any purchaser or by any Holder of Transfer Restricted Notes or underwriter, if any, in connection with any sale or resale pursuant to any Registration Statement contemplated
by this Agreement; and in connection with an Underwritten Registration, each of the Issuers shall: 
  
 (A) upon request, furnish (or in the case of paragraphs (i) and (iii), use its reasonable best efforts to furnish) to each selling Holder
and each underwriter, if any, in such substance and scope as they may request and as are customarily made by issuers to underwriters in primary underwritten offerings, upon the date of the effectiveness of the Shelf Registration Statement:

  
 (1) a certificate, dated the date of the
effectiveness of the Shelf Registration Statement, signed by (y) the Chairman of the Board, its President or a Vice President and (z) the Chief Financial Officer, Chief Accounting Officer or Treasurer of each of the Issuers, confirming, as of the
date thereof, such matters as such parties may reasonably request; 
  
 (2) an opinion, dated the date of the effectiveness of the Shelf Registration Statement, of counsel for the Issuers, covering such matters as such parties may reasonably request, and in 

  

 10 

 
any event including a statement to the effect that such counsel has participated in conferences with officers and other representatives of the Issuers,
representatives of the independent public accountants for the Issuers, the underwriters’ representatives and the underwriters’ counsel in connection with the preparation of such Registration Statement and the related Prospectus and have
considered the matters required to be stated therein and the statements contained therein, although such counsel has not independently verified the accuracy, completeness or fairness of such statements, and that such counsel advises that, on the
basis of the foregoing (relying as to materiality to a large extent upon facts provided to such counsel by officers and other representatives of the Issuers and without independent check or verification), no facts came to such counsel’s
attention that caused such counsel to believe that the applicable Registration Statement, at the time such Registration Statement or any post-effective amendment thereto became effective, contained an untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary to make the statements therein not misleading, or that the Prospectus contained in such Registration Statement as of its date, contained an untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Without limiting the foregoing, such counsel may state further that such counsel assumes no
responsibility for, and has not independently verified, the accuracy, completeness or fairness of the financial statements, notes and schedules and other financial and statistical data included in any Registration Statement contemplated by this
Agreement or the related Prospectus; and 
  
 (3)
a customary comfort letter, dated the date of the effectiveness of the Shelf Registration Statement, from the Issuers’ independent accountants, in the customary form and covering matters of the type customarily covered in comfort letters by
underwriters in connection with primary underwritten offerings. 
  
 (B) set forth in full or incorporate by reference in the underwriting agreement, if any, the indemnification provisions and procedures of Section 8 hereof with respect to all parties to be indemnified pursuant to said
Section; and 
  
 (C) deliver such other
documents and certificates as may be reasonably requested by such parties to evidence compliance with clause (A) above and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Issuers pursuant
to this clause (x), if any. 
  
 If at any time the
representations and warranties of the Issuers contemplated in clause (A)(1) above cease to be true and correct, the Issuers shall so advise the Initial Purchasers and the underwriter(s), if any, and each selling Holder promptly and, if requested by
such Persons, shall confirm such advice in writing. 
  
 (xi) in the case of a Shelf Registration Statement, prior to any public offering of Transfer Restricted Notes, cooperate with the selling Holders, the underwriter(s), if any, and their respective counsel in connection with the registration
and qualification of the Transfer Restricted Notes under the Securities or Blue Sky laws of such jurisdictions as the selling Holders or underwriter(s) may reasonably request and do any and all other acts or things necessary or advisable to enable
the disposition in such jurisdictions of the Transfer Restricted Notes covered by the Shelf Registration Statement; provided, however, neither of the Issuers shall be required to register or qualify as a foreign corporation where it is not
now so qualified or to take any action that would subject it to service of process in suits or to taxation, other than as to matters and transactions relating to the Registration Statement, in any jurisdiction where it is not now so subject;

  
 (xii) in the case of a Shelf Registration
Statement, shall issue, upon the request of any Holder of Notes covered by the Shelf Registration Statement, New Notes in the same amount as the Notes surrendered to the Issuers by such Holder in exchange therefor or being sold by such Holder, such
New Notes to be registered in the name of such Holder or in the name of the purchaser(s) of such Notes, as 

  

 11 

 
the case may be; in return, the Notes held by such Holder shall be surrendered to the Issuers for cancellation; 
  
 (xiii) in the case of a Shelf Registration Statement,
cooperate with the selling Holders and the underwriter(s), if any, to facilitate the timely preparation and delivery of certificates representing Transfer Restricted Notes to be sold and not bearing any restrictive legends and enable such Transfer
Restricted Notes to be in such denominations and registered in such names as the Holders or the underwriter(s), if any, may request at least two business days prior to any sale of Transfer Restricted Notes made by such underwriter(s); 
  
 (xiv) use its reasonable best efforts to cause the Transfer
Restricted Notes covered by the Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof or the underwriter(s), if any, to consummate the
disposition of such Transfer Restricted Notes, subject to the proviso contained in clause (xi) above; 
  
 (xv) if any fact or event contemplated by clause (c)(iii)(D) above shall exist or have occurred, prepare a supplement or post-effective
amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of Transfer Restricted Notes, the Prospectus will
not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; 
  
 (xvi) obtain CUSIP numbers for all Transfer Restricted Notes
not later than the effective date of the Registration Statement and provide certificates for the Transfer Restricted Notes; 
  
 (xvii) cooperate and assist in any filings required to be made with the NASD and in the performance of any due diligence investigation by
any underwriter (including any “qualified independent underwriter”) that is required to be retained in accordance with the rules and regulations of the NASD, and use its reasonable best efforts to cause such Registration Statement to
become effective and approved by such governmental agencies or authorities as may be necessary to enable the Holders selling Transfer Restricted Notes to consummate the disposition of such Transfer Restricted Notes; provided, however, that
neither of the Issuers shall be required to register or qualify as a foreign corporation where it is not now so qualified or to take any action that would subject it to service of process in suits or to taxation, other than as to matters and
transactions relating to the Registration Statement, in any jurisdiction where it is not now so subject; 
  
 (xviii) otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Commission, and make
generally available to its security holders, as soon as practicable, a consolidated earning statement meeting the requirements of Rule 158 under the Securities Act (which need not be audited) for the twelve-month period (A) commencing at the end of
any fiscal quarter in which Transfer Restricted Notes are sold to underwriters in a firm or best efforts Underwritten Offering or (B) if not sold to underwriters in such an offering, beginning with the first month of the Issuers’ first fiscal
quarter commencing after the effective date of the Registration Statement; 
  
 (xix) cause the Indenture to be qualified under the TIA not later than the effective date of the first Registration Statement required by this Agreement, and, in connection therewith, cooperate with the Trustee and
the Holders of Notes to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the TIA, and execute and use its best efforts to cause the Trustee to execute all documents that
may be required to effect such changes and all other forms and documents required to be filed with the Commission to enable such Indenture to be so qualified in a timely manner; and 
  
 (xx) provide promptly to each Holder upon request each document filed with the Commission pursuant to the
requirements of Section 13 and Section 15 of the Exchange Act. 
  

 12 

 Each Holder agrees by acquisition of a Transfer Restricted Note that, upon receipt of any notice from the
Issuers of the existence of any fact of the kind described in Section 6(c)(iii)(D) hereof, such Holder will forthwith discontinue disposition of Transfer Restricted Notes pursuant to the applicable Registration Statement until such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xv) hereof, or until it is advised in writing (the “Advice”) by the Issuers that the use of the Prospectus may be resumed, and has received
copies of any additional or supplemental filings that are incorporated by reference in the Prospectus. If so directed by the Issuers, each Holder will deliver to the Issuers (at the Issuers’ expense) all copies, other than permanent file copies
then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Notes that was current at the time of receipt of such notice. In the event the Issuers shall give any such notice, the time period regarding the effectiveness
of such Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by the number of days during the period from and including the date of the giving of such notice pursuant to Section 6(c)(iii)(D) hereof to and
including the date when each selling Holder covered by such Registration Statement shall have received the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xv) hereof or shall have received the Advice. 
  
 7. Registration Expenses. 
  
 All expenses incident to an Issuer’s performance of or compliance with
this Agreement will be borne by such Issuer, regardless of whether a Registration Statement becomes effective, including without limitation: (i) all registration and filing fees and expenses (including filings made by any purchaser or Holder with
the NASD (and, if applicable, the fees and expenses of any “qualified independent underwriter” and its counsel that may be required by the rules and regulations of the NASD)); (ii) all fees and expenses of compliance with federal
securities and state Blue Sky or securities laws; (iii) all expenses of printing (including printing certificates for the New Notes to be issued in the Exchange Offer and printing of Prospectuses), and associated messenger and delivery services and
telephone; (iv) all fees and disbursements of counsel for the Issuers; (v) all application and filing fees in connection with listing Notes on a national securities exchange or automated quotation system, and the obtaining of a rating of the Notes,
if applicable; and (vi) all fees and disbursements of independent certified public accountants of the Issuers (including the expenses of any special audit and comfort letters required by or incident to such performance). 
  
 Each of the Issuers will, in any event, bear its internal expenses
(including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by such
Issuer. 
  
 8. Indemnification and Contribution.

  
 (a) In connection with a Shelf Registration
Statement or in connection with any delivery of a Prospectus contained in an Exchange Offer Registration Statement by any participating Broker-Dealer or any Initial Purchaser, as applicable, who seeks to sell New Notes, the Issuers shall jointly and
severally indemnify and hold harmless each Holder of Transfer Restricted Notes included within any such Shelf Registration Statement and each participating Broker-Dealer or Initial Purchaser selling New Notes, and each person, if any, who controls
any such person within the meaning of Section 15 of the Securities Act (each, a “Participant”) from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof (including, but not limited to, any
loss, claim, damage, liability or action relating to purchases and sales of Notes) to which such Participant may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is
based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in any such Registration Statement or any prospectus forming part thereof or in any amendment or supplement thereto or in any preliminary prospectus
relating to a Shelf Registration Statement or (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and shall reimburse each Participant
promptly upon demand for any legal or other expenses reasonably incurred by such Participant in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are
incurred; provided, however, that (i) the Issuers 

  

 13 

 
shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue
statement or alleged untrue statement or omission or alleged omission made in any such Registration Statement or any prospectus forming part thereof or in any such amendment or supplement thereto or in any preliminary prospectus relating to a Shelf
Registration Statement in reliance upon and in conformity with written information furnished to the Issuers by or on behalf of any Participant specifically for inclusion therein; and provided further that as to any preliminary Prospectus, the
indemnity agreement contained in this Section 8(a) shall not inure to the benefit of any such Participant on account of any loss, claim, damage, liability or action arising from the sale of the New Notes to any person by that Participant if (i) that
Participant failed to send or give a copy of the Prospectus, as the same may be amended or supplemented, to that person within the time required by the Securities Act and (ii) the untrue statement or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact in such preliminary Prospectus was corrected in the Prospectus, unless, in each case, such failure resulted from non-compliance by the Issuers with Section 6(c) hereof. The foregoing indemnity
agreement is in addition to any liability which each Issuer may otherwise have to any Participant. The Issuers shall also jointly and severally indemnify underwriters, their officers, directors and employees and each person who controls such
underwriters within the meaning of the Securities Act or the Exchange Act to the same extent as provided above with respect to the indemnification of the Holders of the Notes if requested by such Holders. 
  
 (b) Each Participant, severally and not jointly, shall
indemnify and hold harmless each of the Issuers, each of its directors, officers, employees or agents and each person, if any, who controls such Issuer within the meaning of Section 15 of the Securities Act, from and against any loss, claim, damage
or liability, joint or several, or any action in respect thereof, to which such Issuer or any such director, officer, employees or agents or controlling person may become subject, under the Securities Act or otherwise, insofar as such loss, claim,
damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any prospectus forming part thereof or in any amendment or supplement
thereto or in any preliminary prospectus relating to a Shelf Registration Statement or (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading,
but in each case only to the extent that the untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Issuers by or on behalf of that
Participant specifically for inclusion therein, and shall reimburse such Issuer and any such director, officer, employee or agent or controlling person promptly for any legal or other expenses reasonably incurred by such Issuer or any such director,
officer, employee or agent or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred. The foregoing indemnity agreement is in
addition to any liability which any Participant may otherwise have to the Issuers or any such director, officer or controlling person. 
  
 (c) Promptly after receipt by an indemnified party under this Section 8 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the
failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure and, provided further, that the failure to notify
the indemnifying party shall not relieve it from any liability which it may have to an indemnified party otherwise than under this Section 8. If any such claim or action shall be brought against an indemnified party, and such indemnified party shall
have notified the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel
satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this
Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that the indemnified party shall have the right
to employ separate counsel 

  

 14 

 
to represent jointly the indemnified party and those other Participants and their respective officers, employees and controlling persons who may be subject
to liability arising out of any claim in respect of which indemnity may be sought by the Participants against the indemnifying party under this Section 8 if, in the reasonable judgment of the indemnified party it is advisable for the indemnified
party and those Participants, officers, employees and controlling persons to be jointly represented by separate counsel, and in that event the fees and expenses of such separate counsel shall be paid by the indemnifying party. In no event shall the
indemnifying parties be liable for the fees and expenses of more than one counsel (in addition to local counsel). Each indemnified party, as a condition of the indemnity agreements contained in Section 8, shall use its best efforts to cooperate with
the indemnifying party in the defense of any such action or claim. No indemnifying party shall (i) without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld), settle or compromise or consent to
the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties
to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding or (ii) be liable for any settlement of any
such action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment of the plaintiff in any such action, the indemnifying party agrees to
indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. 
  
 (d) If the indemnification provided for in this Section 8 shall for any reason be unavailable to or insufficient to hold harmless an
indemnified party under Section 8(a) or 8(b) in respect of any loss, claim, damage or liability, or any action in respect thereof, referred to therein, then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to
the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, (i) in such proportion as shall be appropriate to reflect the relative benefits received by the Issuers on the
one hand and the Participants on the other from the offering of the Initial Notes or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Issuers on the one hand and the Participants on the other with respect to the statements or omissions which resulted in such loss, claim, damage or liability, or action in
respect thereof, as well as any other relevant equitable considerations. The relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Issuers or the Participants, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. Each of the Issuers and the
Participants agree that it would not be just and equitable if contributions pursuant to this Section 8(d) were to be determined by pro rata allocation (even if the Participants were treated as one entity for such purpose) or by any other method of
allocation which does not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to above in
this Section 8(d) shall be deemed to include, for purposes of this Section 8(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8(d), no Participant shall be required to contribute any amount in excess of the amount by which proceeds received by such Participant from an offering of the Notes exceeds the amount of any damages which such Participant
has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Participants’ obligations to contribute as provided in this Section 8(d) are several and not joint. 
  

 15 

 9. Rule 144A. 
  
 Each of the Issuers hereby agrees with each Holder, for so long as any Transfer Restricted Notes remain outstanding, to make
available to any Holder or beneficial owner of Transfer Restricted Notes in connection with any sale thereof and any prospective purchaser of such Transfer Restricted Notes from such Holder or beneficial owner, the information required by Rule
144A(d)(4) under the Securities Act, if any, in order to permit resales of such Transfer Restricted Notes pursuant to Rule 144A. 
  
 10. Participation in Underwritten Registrations. 
  
 No Holder may participate in any Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder’s Transfer Restricted Notes on
the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all reasonable questionnaires, powers of attorney, indemnities, underwriting agreements,
lock-up letters and other documents required under the terms of such underwriting arrangements. 
  
 11. Selection of Underwriters. 
  
 The Holders of Transfer Restricted Notes covered by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted Notes in an
Underwritten Offering. In any such Underwritten Offering, the investment banker or investment bankers and manager or managers that will administer the offering will be selected by the Holders of a majority in aggregate principal amount of the
Transfer Restricted Notes included in such offering; provided that such investment bankers and managers must be reasonably satisfactory to the Issuers. 
  

12. Miscellaneous. 
  
 (a) Remedies. The Issuers agree that monetary damages (including Additional Interest) would not be adequate compensation for any
loss incurred by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 
  
 (b) No Inconsistent Agreements. Each of the Issuers
will not on or after the date of this Agreement enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. Except for the
Registration Rights Agreement dated as of March 5, 1997 between the Company, Steven E. Bernstein, Ronald G. Bizick, II and Robert Grobstein as assigned, and the Registration Rights Agreement, dated as of March 6, 1997, among the Company and the
Preferred Shareholders, neither Issuer has previously entered into any agreement granting any registration rights with respect to its securities to any Person. The rights granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of either Issuer’s securities under any agreement in effect on the date hereof. 
  
 (c) Adjustments Affecting the Notes. The Issuers will not take any action, or permit any change to occur, with respect to Notes
that would materially and adversely affect the ability of the Holders to Consummate any Exchange Offer unless such action or change is required by applicable law. 
  
 (d) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions hereof may not be given unless the Issuers have obtained the written consent of Holders of a majority of the outstanding principal amount of Transfer Restricted Notes.
Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to the rights of Holders whose securities are being tendered pursuant to the Exchange Offer and that does not affect directly or
indirectly the rights of other Holders whose securities are not being tendered pursuant to such Exchange Offer may be given by the Holders of a majority of the outstanding principal amount of Transfer Restricted Notes being tendered or registered.

  

 16 

 (e) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified, return receipt requested), facsimile transmission, or air courier guaranteeing overnight delivery: 
  
 (i) if to a Holder, at the address of such Holder maintained
by the Registrar under the Indenture; and 
 (ii) if to the Issuers: 
  
 SBA Communications Corporation 
 5900 Broken Sound Parkway NW 
 Boca Raton, FL 33487 
 Attention: General Counsel 
 Facsimile: (561) 995-2941 
 Telephone: (561) 995-7670 
 with a copy to: 
  
 Akerman Senterfitt 
 One Southeast Third Avenue 
 28th Floor 
 Miami, FL 33131 
 Attention: Jonathan L. Awner, Esq. 
 and Kara L. MacCullough, Esq. 
 Facsimile: (305) 374-5095 
 Telephone: (305) 374-5600 
  
 All
such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five business days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if via
facsimile transmission; and on the next business day, if timely delivered to an air courier guaranteeing overnight delivery. 
  
 Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee at the address
specified in the Indenture. 
  
 (f) Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including without limitation and without the need for an express assignment, subsequent Holders of Transfer
Restricted Notes; provided, however, that this Agreement shall not inure to the benefit of or be binding upon a successor or assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted Notes from such
Holder. 
  
 (g) Counterparts. This
Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

  
 (h) Headings. The headings in this
Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  
 (i) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

  
 (j) Severability. In the event that
any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby to the extent permitted by applicable law. 
  
 (k) Entire Agreement. This Agreement together with the other transaction documents is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the 

  

 17 

 
agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Issuers with respect to the Transfer Restricted Notes. This Agreement supersedes all prior agreements and understandings between
the parties with respect to such subject matter. 
  
 (l) Required Consents. Whenever the consent or approval of Holders of a specified percentage of Transfer Restricted Notes is required hereunder, Transfer Restricted Notes held by an Issuer or its affiliates (as such term is defined
in Rule 405 under the Securities Act) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 
  

 18 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

			
	SBA COMMUNICATIONS CORPORATION
		
	By:	 	/s/    Thomas P. Hunt
	 	 	

	 	 	 Name: Thomas P. Hunt
 Title:   Senior Vice President and General
             Counsel

	
	 SBA TELECOMMUNICATIONS, INC.

		
	By:	 	/s/    Thomas P. Hunt
	 	 	

	 	 	 Name: Thomas P. Hunt
 Title:   Senior Vice President and General
             Counsel

  

			
	 Accepted:

	
	 LEHMAN BROTHERS INC.
 CITIGROUP GLOBAL MARKETS INC.
 DEUTSCHE BANK SECURITIES INC.
 MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
 TD SECURITIES (USA) INC.

	
	 BY LEHMAN BROTHERS INC.

		
	By:	 	/s/    Alexander Sade
	 	 	

	 	 	Authorized Representative

  

 19

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