Document:

Summit Lease

 Exhibit 10.19 
  
 SUMMIT 
  
 LEASE 
  
 AEW \ PARKER II, LLC, 
  
 a California limited liability company 
  
 as Landlord, 
  
 and 
  
 BUY.COM, 
 a Delaware corporation 
  
 as Tenant. 

  
 INDEX

  

					
	 ARTICLE SUBJECT MATTER

	  	PAGE

			
	 1.
	  	PROJECT, BUILDING AND PREMISES	  	3
			
	 2.
	  	INITIAL LEASE TERM; OPTION TERM	  	5
			
	 3.
	  	BASE RENT; ABATEMENT OF BASE RENT	  	6
			
	 4.
	  	ADDITIONAL RENT	  	6
			
	 5.
	  	USE OF PREMISES	  	9
			
	 6.
	  	SERVICES AND UTILITIES	  	9
			
	 7.
	  	REPAIRS	  	10
			
	 8.
	  	ADDITIONS AND ALTERATIONS	  	10
			
	 9.
	  	COVENANT AGAINST LIENS	  	11
			
	 10.
	  	INSURANCE	  	11
			
	 11.
	  	DAMAGE AND DESTRUCTION	  	12
			
	 12.
	  	NONWAIVER	  	13
			
	 13.
	  	CONDEMNATION	  	13
			
	 14.
	  	ASSIGNMENT AND SUBLETTING	  	13
			
	 15.
	  	OWNERSHIP AND REMOVAL OF TRADE FIXTURES	  	14
			
	 16.
	  	HOLDING OVER	  	15
			
	 17.
	  	ESTOPPEL CERTIFICATES	  	15
			
	 18.
	  	SUBORDINATION	  	15
			
	 19.
	  	DEFAULTS; REMEDIES	  	15
			
	 20.
	  	FORCE MAJEURE	  	16
			
	 21.
	  	SECURITY DEPOSIT; LETTER OF CREDIT	  	16
			
	 22.
	  	INTENTIONALLY OMITTED	  	17
			
	 23.
	  	SIGNS	  	17
			
	 24.
	  	COMPLIANCE WITH LAW	  	18
			
	 25.
	  	LATE CHARGES	  	18
			
	 26.
	  	LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT	  	18
			
	 27.
	  	ENTRY BY LANDLORD	  	18
			
	 28.
	  	TENANT PARKING	  	18
			
	 29.
	  	MISCELLANEOUS PROVISIONS	  	19

  
 EXHIBITS 
  

			
	 A
	  	OUTLINE OF PREMISES
	 B
	  	TENANT WORK LETTER
	 C
	  	NOTICE OF LEASE TERM DATES
	 D
	  	RULES AND REGULATIONS
	 E
	  	ESTOPPEL CERTIFICATE
	 F
	  	RECOGNITION OF COVENANTS, CONDITIONS AND RESTRICTIONS
	 G
	  	LETTER OF CREDIT

  

 -i- 

  
 INDEX OF MAJOR DEFINED
TERMS 
  

			
	 	  	PAGE

	 Abated Base Rent
	  	6
	 Abatement Event
	  	10
	 Accountant
	  	9
	 Additional CC&Rs
	  	9
	 Additional Rent
	  	6
	 After-Hours HVAC
	  	10
	 Allowance Savings
	  	Exhibit B, 5
	 Alterations
	  	10
	 Approved Working Drawings
	  	4
	 Available Expansion Space
	  	3
	 Available for Lease
	  	4
	 Base Rent
	  	6
	 Base Year
	  	6
	 Base, Shell and Core
	  	Exhibit B, 3
	 Brokers
	  	20
	 Builders All Risk
	  	10
	 Building
	  	3
	 Building Parking Facility
	  	3
	 Business Hours
	  	9
	 Buy.com
	  	19
	 Child Care Facilities
	  	22
	 Child Care Provider
	  	22
	 Code
	  	Exhibit B, 3
	 Common Areas
	  	3
	 Construction Drawings
	  	Exhibit B, 4
	 Contractor
	  	Exhibit B, 4
	 Cost Pools
	  	7
	 Cost Proposal
	  	Exhibit B, 5
	 Cost Proposal Delivery Date
	  	Exhibit B, 5
	 County
	  	Exhibit B, 4
	 Demising Walls
	  	Exhibit B, 3
	 Direct Expenses
	  	6
	 Eligibility Period
	  	10
	 Engineers
	  	Exhibit B, 4
	 Estimate
	  	8
	 Estimate Statement
	  	8
	 Estimated Excess
	  	8
	 Excess
	  	8
	 Existing Building First Offer Space
	  	4
	 Existing CC&Rs
	  	9
	 Expansion Base Rent
	  	3
	 Expansion Option
	  	3
	 Expansion Period
	  	3
	 Expansion Space Commencement Date
	  	4
	 Expense Year
	  	6
	 Extension Option
	  	5
	 Final Space Plan
	  	Exhibit B, 4
	 Final Working Drawings
	  	Exhibit B, 4
	 First Offer Commencement Date
	  	5
	 First Offer Notice
	  	4
	 First Offer Rent
	  	5
	 First Refusal Notice
	  	4
	 Force Majeure
	  	16
	 Hazardous Material
	  	20
	 Holidays
	  	9
	 HVAC
	  	9
	 Initial Premises
	  	3
	 Landlord
	  	3
	 Landlord Parties
	  	11
	 Landlord Supervision Fee
	  	Exhibit B, 5
	 Landlord Work
	  	Exhibit B, 3
	 L-C
	  	16
	 L-C Amount
	  	16
	 L-C Security Deposit
	  	17
	 Lease
	  	3
	 Lease Commencement Date
	  	5
	 Lease Expiration Date
	  	5
	 Lease Term
	  	5
	 Lease Year
	  	5
	 Lobby
	  	Exhibit B, 3
	 Monument
	  	17
	 Net Worth
	  	14
	 Notices
	  	20
	 Operating Expenses
	  	6
	 Option Rent
	  	6
	 Option Rent Concessions
	  	6
	 Option Rent Notice
	  	6
	 Option Term
	  	5
	 Original Tenant
	  	3
	 Other Improvements
	  	21
	 Over-Allowance
	  	4
	 Permits
	  	Exhibit B, 4

  

 -ii- 

			
	 Permitted Transfer
	  	14
	 Permitted Transferee
	  	14
	 Permitted Use
	  	9
	 Pre-Approved Contractors
	  	Exhibit B, 4
	 Premises
	  	3
	 Pre-paid Processing
	  	13
	 Prior Base Rent
	  	5
	 Project
	  	3
	 Proposition 13
	  	8
	 Provider
	  	21
	 Public Corridor
	  	Exhibit B, 3
	 Ready for Occupancy
	  	Exhibit B, 5
	 Recognition of Covenants, Conditions, and Restriction
	  	9
	 Reduced L-C Amount
	  	16
	 Reduced L-C Period
	  	16
	 Renovation Abatement Event
	  	21
	 Renovation Eligibility Period
	  	21
	 Renovations
	  	21
	 Rent
	  	6
	 RFO Concession
	  	5
	 Security
	  	3
	 Security Deposit
	  	16
	 Spec Space
	  	3
	 Specifications
	  	Exhibit B, 3
	 Standard Improvement Package
	  	Exhibit B, 3
	 Statement
	  	8
	 Subject Space
	  	13
	 Substantial Completion
	  	Exhibit B, 5
	 Summary
	  	3
	 Superior Right Holders
	  	4
	 Tax Expenses
	  	8
	 TCCs
	  	4
	 Tenant
	  	3
	 Tenant Improvement Allowance
	  	Exhibit B, 3
	 Tenant Improvement Allowance Items
	  	Exhibit B, 3
	 Tenant Signage
	  	17
	 Tenant Work Letter
	  	Exhibit B, 3
	 Tenant’s Share
	  	8
	 Time Deadlines
	  	Exhibit B, 4
	 Transfer Notice
	  	13
	 Transfer Premium
	  	13, 14
	 Transferee
	  	13
	 Transfers
	  	13
	 Year 2000 problem
	  	8

  

 -iii- 

  
 SUMMIT

  
 SUMMARY OF BASIC LEASE INFORMATION

  
 The undersigned hereby agree to the following terms of
this Summary of Basic Lease Information (the “Summary”). This Summary is hereby incorporated into and made a part of the attached Lease (this Summary and the Lease to be known collectively as the “Lease”) which
pertains to the building which is located at 85 Enterprise, Aliso Viejo, California (the “Building”). Each reference in the Lease to any term of this Summary shall have the meaning as set forth in this Summary for such term. In the
event of a conflict between the terms of this Summary and the Lease, the terms of the Lease shall prevail. Any capitalized terms used herein and not otherwise defined herein shall have the meaning as set forth in the Lease. 
  

					
	 TERMS OF LEASE
(References are to the Lease)

	  	 DESCRIPTION

	 1.
	 	Date:	  	June     , 1999.
			
	 2.
	 	Landlord:	  	AEW \ Parker II, LLC, a California limited liability company
			
	 3.
	 	Address of Landlord
(Section 29.14):	  	 95 Enterprise
 Suite 200
 Aliso Viejo, California 92656
 Attention: Todd Burnight, Esq.
  
 and
  

Allen, Matkins, Leck, Gamble & Mallory LLP
 1999 Avenue of the
Stars
 Suite 1800
 Los Angeles, California 90067
 Attention: Anton N. Natsis, Esq.

			
	 4.
	 	Tenant:	  	Buy.com, a Delaware corporation
			
	 5.
	 	Address of Tenant
(Section 29.14):	  	 Buy.com
 21 Brookline
 Aliso Viejo, California 92686
 Attention: Mr. Alan
Barbieri

			
	 6.
	 	Premises (Article 1):	  	Approximately 53,583 rentable (50,186 usable) square feet of space located on the first (1st) floor (which contains approximately 25,053 rentable square feet and approximately 23,364 usable
square feet) and second (2nd) floor (which contains approximately 28,530 rentable square feet and approximately 26,822 usable square feet) of the Building, as set forth on Exhibit A attached hereto.
			
	 7.
	 	Term (Article 2).	  	 
			
	 	 	 7.1      Lease Term:
	  	Five (5) years and six (6) months.
			
	 	 	 7.2      Lease Commencement Date
	  	The earlier of (i) the date Tenant commences business in an area within the Premises of 1,000 square feet or more, or (ii) the date the Premises are Ready for Occupancy (as defined in the Tenant
Work Letter attached hereto as Exhibit B), which Lease Commencement Date is anticipated to be December 1, 1999.
			
	 	 	 7.3      Lease Expiration Date
	  	The last day of the sixty-sixth (66th) month of the Lease Term.
			
	 8.
	 	Base Rent (Article 3):	  	 

					
			
	 Months of
Lease Term

	  	 Monthly
Installment
of Base Rent

	  	 Monthly Rental
Rate per Rentable
Square Foot

			
	1 - 6	  	$92,397.30	  	 $2.35 (subject to Sections 3.2 and 28)

			
	7 - 66	  	$125,920.05	  	 $2.35 (subject to Section 28)

							
				
	 9.
	 	Additional Rent (Article 4).	  	 	  	 
				
	 	 	 9.1      Base Year:
	  	Calendar year 2000.	  	 
				
	 	 	 9.2      Tenant’s Share of Direct Expenses:
	  	48.40%	  	 
				
	 10.
	 	Use (Article 5):	  	General office use only.	  	 
				
	 11.
	 	Security Deposit (Article 21):	  	 None
	  	 
				
	 	 	Letter of Credit (Article 21):	  	$2,622,210.20 (representing the following: (i) the sum of leasing commissions equal to $486,575.21, (ii) Tenant improvement costs equal to $1,380,115 and (iii) six months of Base
Rent equal to $755,520).	  	 

					
	 12.
	 	Parking Pass Ratio (Article 28):	  	4 parking passes for every 1,000 rentable square feet of the Premises, of which ten (10) shall be for covered, reserved spaces.
			
	 13.
	 	Brokers (Section 29.21):	  	 CB Richard Ellis, Inc.
 24422 Avenida de la Carlota,
Suite 120
 Laguna Hills, California 92653

			
	 14.
	 	Tenant Improvement Allowance (Section 2 of Exhibit B):	  	$27.50 x usable square feet

  

 -2- 

  
 LEASE

  
 This Lease, which includes the preceding Summary of
Basic Lease Information (the “Summary”) attached hereto and incorporated herein by this reference (the Lease and Summary to be known sometimes collectively hereafter as the “Lease”), dated as of the date set forth
in Section 1 of the Summary, is made by and between AEW \ PARKER II, LLC, a California limited liability company (“Landlord”), and BUY.COM, a Delaware corporation (“Tenant”).

  
 1. PROJECT, BUILDING AND PREMISES 
  
 1.1 Project, Building and Premises. Upon and subject to the
terms, covenants and conditions hereinafter set forth in this Lease, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the premises set forth in Section 6 of the Summary (the “Initial Premises,” and
together with all space leased by Tenant from time to time pursuant to this Lease (including, pursuant to Sections 1.3 and 1.4 below), the “Premises”), which Initial Premises is located in the “Building,” as
that term is defined in this Section 1. The Premises are a part of the building (the “Building”) located at 85 Enterprise, Aliso Viejo, California and is a part of the mixed use project known as the “Summit”.
The term “Project,” as used in this Lease, shall mean (i) the Building and the “Common Areas,” as that term is defined below, (ii) the land (which is improved with landscaping and other improvements) upon which the
Building and the Common Areas are located, (iii) the other office buildings located adjacent to the Building and the land upon which such adjacent office buildings are located, (iv) the parking facility servicing the Building (the
“Building Parking Facility”), and (v) at Landlord’s reasonable discretion, any additional real property, areas, land, buildings or other improvements added thereto outside of but adjacent to or in close proximity with the
Project. Tenant shall have the non-exclusive right to use and enjoy in common with other tenants in the Building those portions of the Project which are provided for use in common by Tenant and any other tenants of the Project (the “Common
Areas”). Subject to Landlord’s reasonable rules and regulations and access control procedures, Tenant shall have the right of access to the Premises twenty-four (24) hours per day, seven (7) days per week during the
“Lease Term,” as that term is defined in Article 2 of this Lease. Except as specifically set forth in this Lease and in the Tenant Work Letter attached hereto as Exhibit B, Landlord shall not be obligated to provide or
pay for any improvement work or services related to the improvement of the Premises. Tenant also acknowledges that Landlord has made no representation or warranty regarding the condition of the Premises or the Building or the Project except as
specifically set forth in this Lease and the Tenant Work Letter. 
  
 1.2 Verification of Rentable Square Feet of Premises and Building. For purposes of this Lease, “rentable square feet” and “usable square feet” shall be calculated pursuant to Standard Method of Measuring
Floor Area in Office Building, ANSI Z65.1 - 1996 (“BOMA”). Promptly following the Substantial Completion of the Premises, the Building and the Premises shall be measured by Stevenson Systems, Landlord’s space planner/architect,
to determine the actual rentable and usable square footage. Within fifteen (15) days of such determination by Stevenson Systems, Tenant may verify the rentable and usable square feet of the Premises, as determined by Landlord’s space
planner/architect. In the absence of a manifest error by Landlord’s space planner/architect, or if Tenant does not elect to verify such determination within the applicable fifteen (15) day period, the determination of Landlord’s space
planner/architect shall be conclusive and binding upon the parties. In the event that there is a determination that the amounts thereof shall be different from those set forth in this Lease, all amounts, percentages and figures appearing or referred
to in this Lease based upon such incorrect amount (including, without limitation, the amount of the “Rent” and any “Security Deposit,” as those terms are defined in Section 4.1 and Article 21 of this Lease,
respectively) shall be modified in accordance with such determination effective as of the date of such determination. If such determination is made, it will be confirmed in writing by Landlord to Tenant. 
  
 1.3 Building Expansion Rights. Subject to the terms and
conditions of this Section 1.3, Landlord hereby grants to the original Tenant named in the Summary (the “Original Tenant”) (and not any assignee, sublessee or other transferee of Tenant’s interest in this Lease,
except as provided in Section 1.3.7 below) a continuing right to lease any and all “Available Expansion Space,” as that term is defined below, after the date hereof and during the initial twelve (12) months of the Lease
Term (the “Expansion Period”). The term “Available Expansion Space” means any and all space on the third (3rd) and fourth (4th) floors of the Building (excluding, however, certain space to be identified by
Landlord at any time and from time to time on the fourth (4th) floor of the Building, up to but not to exceed 6,000 rentable square feet in the aggregate, which Landlord intends to build-out with certain tenant improvements on a speculative
basis [hereinafter, the “Spec Space”]), and all such space (excluding the Spec Space) shall continue to be deemed Available Expansion Space until the earlier of (i) the end of the Expansion Period, (ii) Tenant’s
election (or deemed election) not to lease the Available Expansion Space (or portions thereof) pursuant to Section 1.3.5 below, or (iii) the earlier termination of this Lease. 
  
 1.3.1 Method of Exercise. The expansion option
contained in this Section 1.3 (“Expansion Option”) shall be exercised only by Original Tenant and only in the following manner: (i) Tenant shall deliver one or more written notices to Landlord on or before the last
business day of the Expansion Period, stating that Tenant is exercising its Expansion Option; (ii) Tenant’s written exercise notice(s) shall specify the approximate square footage of Available Expansion Space that Tenant desires to lease,
which shall be in increments of not less than 5,000 rentable square feet (except to the extent that Tenant elects to lease space pursuant to Landlord’s “First Refusal Notice,” as that term is defined below, and such space as described
in Landlord’s First Refusal Notice is less than 5,000 square feet); (iii) Landlord, after receipt of Tenant’s notice, shall notify Tenant of the precise location of the Available Expansion Space to be leased to Tenant (Landlord
acknowledging that Tenant’s preference is to lease portions of the third floor, to the extent there is Available Expansion Space on the third floor of the Building, prior to leasing any Available Expansion Space on the fourth floor of the
Building); and (iv) within seven (7) days of Landlord’s determination of the precise location of the Available Expansion Space to be leased by Tenant, Tenant shall deliver to Landlord a preliminary space plan for such space for
Landlord’s review and approval and commencement of the planning and permitting for and construction of the tenant improvements for such space. Notwithstanding the foregoing, Tenant shall not be entitled to deliver more than three
(3) expansion notices during the Expansion Period (excluding, however, notices delivered by Tenant in response to a First Refusal Notice [defined below] delivered by Landlord pursuant to Section 1.3.5 below), nor shall Tenant be
permitted to deliver expansion notices more frequently than once during each ninety (90) day period comprising the Expansion Period. 
  
 1.3.2 Expansion Rent and Other Economic Lease Terms. The Base Rent payable by Tenant for the Available Expansion Space
leased by Tenant (the “Expansion Base Rent”) shall be equal to Two and 42/100 Dollars ($2.42) per month per rentable square foot of space comprising the applicable leased Available Expansion Space. The Base Year for the leased
Available Expansion Space shall be calendar year 2000. Further, Tenant’s share of Direct Expenses and all other provisions of this Lease tied to the rentable and usable square footage of the Premises shall be adjusted accordingly with each
addition of Expansion Space. 
  
 1.3.3
Construction of Expansion Space. Promptly following Landlord’s review and approval of Tenant’s preliminary space plan for the Available Expansion Space to be leased by Tenant, Landlord and Tenant shall undertake the same
duties and obligations with respect to the construction of the tenant improvements for such Available Expansion Space as are set forth in the Tenant Work Letter with respect to the Tenant’s Improvements for the Initial Premises, including
Tenant’s right to a tenant improvement allowance equal to $27.50 per usable square foot of the leased Available Expansion Space and Landlord’s construction of the tenant improvements for such space. 
  
 1.3.4 Lease Term for Expansion Space. Tenant
shall commence payment of Expansion Base Rent and all other Additional Rent for the leased Available Expansion Space and the term of the Lease respecting such space shall commence 

  

 -3- 

 
upon the earlier of (i) the date Tenant commences business operations from the leased Available Expansion Space or (ii) the date the leased
Available Expansion Space is “Ready for Occupancy,” as that term is defined in the Tenant Work Letter (the “Expansion Space Commencement Date”). The term of the Lease respecting such space shall expire co-terminously with
the Lease Term for the Initial Premises on the Lease Expiration Date. 
  
 1.3.5 Landlord’s Continuing Right to Lease Expansion Space. Notwithstanding anything to the contrary contained in this Section 1.3, if at any time Landlord has entered into good faith
negotiations with a proposed tenant to lease all or any portion of the Available Expansion Space (as evidenced by an exchange of written lease proposals or letters of intent, whether binding or non-binding, and whether or not fully-executed by
Landlord, on the one hand, and the proposed tenant, on the other hand), Landlord shall notify Tenant (the “First Refusal Notice”) of such negotiations and the approximate square footage of the proposed space to be leased (and
location of the proposed space to be leased, if such space has been so identified) by such tenant. If Tenant wishes to exercise Tenant’s Expansion Option with respect to the space described in the First Refusal Notice, then within five
(5) business days of delivery of the First Refusal Notice to Tenant, Tenant shall deliver written notice to Landlord of Tenant’s exercise of its Expansion Option with respect to the entire space described in the First Refusal Notice, and
in such notice Tenant shall also identify all other Available Expansion Space Tenant may, in its good faith determination, lease pursuant to its Expansion Option in the next thirty (30) day period. Tenant must elect to exercise its right of
first refusal, if at all, with respect to all of the space described by Landlord in its First Refusal Notice to Tenant, and Tenant may not elect to lease only a portion thereof. If Tenant does not notify Landlord within the five (5) business
day period of Tenant’s decision whether or not to lease the size of (and, if applicable, the precise location of) the space described in Landlord’s First Refusal Notice, then Landlord shall be free to lease the size (and, if applicable,
the precise location of) space described in the First Refusal Notice to the proposed tenant on any terms Landlord desires; provided that if Landlord has not entered into a written lease agreement with such proposed tenant within one hundred twenty
(120) days after the delivery of Tenant’s rejection notice (or deemed rejection), Tenant’s Expansion Option shall be reinstituted with respect to the space described in Landlord’s First Refusal Notice. Tenant acknowledges that
even if Tenant elects to lease the applicable Available Expansion Space pursuant to Landlord’s First Refusal Notice, Landlord may still want to lease to such proposed tenant any then-remaining Available Expansion Space that is similar in size
to the space described in Landlord’s First Refusal Notice. Accordingly, (i) if Tenant elects to lease the Expansion Space identified in Landlord’s First Refusal Notice but Tenant does not clearly specify in its notice the additional
Available Expansion Space that Tenant, in its good faith determination, expects to lease pursuant to its Expansion Option in the thirty (30) day period immediately following the delivery of Landlord’s First Refusal Notice, or (ii) if
Tenant does so specify the additional Available Expansion Space but such space is less than all of the then remaining Available Expansion Space, then Landlord shall be free to lease the size of space described in Landlord’s First Refusal Notice
to the proposed tenant on any terms Landlord desires, but simply in a different location from the location of the space in which Tenant has just exercised its Expansion Option; provided that if Landlord has not entered into a written lease agreement
with such proposed tenant within one hundred twenty (120) days after the delivery of Tenant’s notice, Tenant’s Expansion Option shall be reinstituted with respect to such space. 
  
 1.3.6 Amendment to Lease. If Tenant timely
exercises Tenant’s right to lease the applicable Available Expansion Space as set forth herein, Landlord and Tenant shall within fifteen (15) days thereafter execute an amendment adding such space to the Lease upon the same terms and
conditions as the Initial Premises, except as otherwise set forth in this Section 1.3. For each increment of Available Expansion Space leased by Tenant, Tenant shall, concurrently with the execution of the amendment adding such space as
part of the Premises, deliver an additional “L-C,” as that term is defined in Section 21.3, or a replacement to the existing L-C such that, as of the execution of the amendment, Landlord is in possession of one or more L-Cs
with an aggregate face amount of (a) the “Original L-C Amount,” as that term is defined in Section 21.1 below, plus (b) the sum of (i) all leasing commissions paid by Landlord in connection with Tenant’s
leasing of the applicable Available Expansion Space, (ii) all tenant improvement costs and/or allowances expended or granted by Landlord in connection with such space and (iii) six (6) months of Expansion Base Rent, subject to
adjustment for the then-applicable “Reduced L-C Amount,” as that term is defined in Section 21.1 below. The terms and conditions respecting the form, delivery, handling and drawing of or on L-C shall be as described in
Section 21.2 and 21.3 below. 
  
 1.3.7 Termination of Right of First Offer. The rights contained in this Section 1.3 may only be exercised by the Original Tenant (or by a Permitted Transferee [as defined in Section 14.6 below]
following an assignment of all of Original Tenant’s rights, title and interests in this Lease by Original Tenant to such Permitted Transferee), provided Tenant (or the applicable Permitted Transferee) occupies not less than ninety percent 90%)
of the Premises as of the date of the attempted exercise of the rights described herein and as of the scheduled date of delivery of the applicable Available Expansion Space to Tenant. The rights granted herein shall terminate upon the failure by
Tenant to exercise duly and timely its rights with respect to the Available Expansion Space as offered by Landlord. Notwithstanding the foregoing, Landlord shall have no obligation to offer the Available Expansion Space (or any portion thereof) to
Tenant and Tenant shall not have the right to lease the Available Expansion Space (or any portion thereof), as provided in this Section 1.3, (i) after the commencement of the thirteenth (13th) month of the initial Lease Term,
or (ii) if, as of the date of the attempted exercise of the rights granted herein, or as of the scheduled date of delivery of such Available Expansion Space to Tenant, Tenant is in default under this Lease or Tenant has previously been in
default under this Lease more than once during the Expansion Period (beyond any applicable cure periods). Given that Original Tenant or a Permitted Transferee who has taken an assignment of all of Original Tenant’s rights, title and interests
in and to this Lease are the only parties entitled to exercise the Expansion Option right and other rights provided for in this Section 1.3, all references to “Tenant” in this Section 1.3 shall be deemed to mean
“Original Tenant” or a Permitted Transferee who has taken an assignment of all of Original Tenant’s rights, title and interests in and to this Lease. 
  
 1.4 Existing Building Right of First Offer. After the expiration of the Expansion Period, and subject to the
terms and conditions of this Section 1.4, Landlord hereby grants to the Original Tenant a continuing right of first offer with respect to any space on the third (3rd) or fourth (4th) floors of the Building that becomes “Available
for Lease,” as that term is defined below, after the date hereof (the “Existing Building First Offer Space”). The Existing Building First Offer Space (or portions thereof) shall be deemed “Available for Least” only
following the expiration or earlier termination of the initial lease(s) of the Existing Building First Offer Space, including leases entered into with other tenants during the Expansion Period in accordance with Section 1.3.5 above, and
including any renewal of such lease(s), whether or not such renewal is pursuant to an express written provision in such lease(s), and regardless of whether any such renewal is consummated pursuant to a lease amendment or a new lease(s), and such
first offer right shall be subordinate to all rights of all other tenants of the Building to lease the Existing Building First Offer Space in existence as of the date hereof (whether pursuant to existing rights of first offer, expansion options,
must-take requirements, or otherwise) (collectively, the “Superior Right Holders”). Tenant’s right of first offer shall be on the terms, covenants and conditions (“TCCs”) set forth in this
Section 1.4. 
  
 1.4.1
Procedure for Offer. Landlord shall notify Tenant (the “First Offer Notice”) when and if the Existing Building First Offer Space (or portions thereof) becomes Available for Lease during the first four
(4) “Lease Years,” as that term is defined in Section 2.1 below, provided that no Superior Right Holder wishes to lease such space. Pursuant to such First Offer Notice, Landlord shall offer to lease to Tenant the Existing
Building First Offer Space (or applicable portion thereof). The First Offer Notice shall describe the space so offered to Tenant and shall set forth the “First Offer Rent,” as that term is defined in Section 1.4.3 below, and
the other economic terms upon which Landlord is willing to lease such space to Tenant. 
  

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 1.4.2 Procedure for Acceptance. If Tenant wishes to exercise Tenant’s
right of first offer with respect to the space described in the First Offer Notice, then within five (5) business days of delivery of the First Offer Notice to Tenant, Tenant shall deliver notice to Landlord of Tenant’s intention to
exercise its right of first offer with respect to the entire space described in the First Offer Notice on the terms contained in such notice. If Tenant does not so notify Landlord within the five (5) business day period, then Landlord shall be
free to lease the space described in the First Offer Notice to anyone to whom Landlord desires on any terms Landlord desires. Notwithstanding anything to the contrary contained herein, Tenant must elect to exercise its right of first offer, if at
all, with respect to all of the space offered by Landlord to Tenant, and Tenant may not elect to lease only a portion thereof. 
  
 1.4.3 First Offer Rent. The rent payable by Tenant for the Existing Building First Offer Space (the “First Offer
Rent”) shall be equal to the rent (including additional rent and considering any “base year” or “expense stop” applicable thereto), including all escalations, at which tenants, as of the “First Offer Commencement
Date,” as that term is defined in Section 1.4.5, below, are leasing non-sublease, non-encumbered, non-equity space comparable in size, location and quality to the Existing Building First Offer Space for a similar lease term, which
comparable space is located in the Project, taking into consideration only the following concessions (collectively, the “RFO Concessions”): (a) rental abatement concessions, if any, being granted such tenants in connection with
such comparable space, and (b) tenant improvements or allowances provided or to be provided for such comparable space, taking into account, and deducting the value of, the existing improvements in the Existing Building First Offer Space, such
value to be based upon the age, quality and layout of the improvements and the extent to which the same could be utilized by a general office user. Notwithstanding anything to the contrary in the foregoing, in no event shall the base rent component
of the First Offer Rent be less than the sum of (i) the Base Rent on an annual, per rentable square foot basis under this Lease for the Initial Premises as of the “First Offer Commencement Date,” as that term is defined in
Section 1.4.4 below, including all applicable escalations to the Base Rent made or to be made during the Lease Term, and (ii) the amount of Tenant’s Share of Direct Expenses, as that term is defined in Section 4.2.2
below, payable by Tenant on an annual, per rentable square foot basis for the Premises immediately prior to such commencement date (collectively, the “Prior Base Rent”). In the event that the base rent component of the First Offer
Rent is the Prior Base Rent, then (A) the new “Base Year,” as that term is defined in Section 4.2.1, below, with respect to the Existing Building First Offer Space only shall be the calendar year in which the First Offer
Commencement Date occurs with respect to the Existing Building First Offer Space, and (B) the concessions granted to Tenant in connection with the Existing Building First Offer Space shall be equal to the RFO Concessions. 
  
 1.4.4 Construction In Existing Building First Offer
Space; Automatic Extension of Lease Term. Tenant shall take the Existing Building First Offer Space in its “as is” condition, and the construction of improvements in the Existing Building First Offer Space shall comply with the
terms of Article 8 of this Lease, unless Landlord’s First Offer Notice sets forth different terms and conditions for the delivery of such space to Tenant or for the construction of tenant improvements in such space, in which case
Landlord’s First Offer Notice shall govern. Tenant shall commence payment of rent for the Existing Building First Offer Space, and the term of the Lease with respect to the Existing Building First Offer Space shall commence upon the date of
delivery of the Existing Building First Offer Space to Tenant (the “First Offer Commencement Date”). The term of this Lease with respect to the Existing Building First Offer Space shall be for the period set forth in the First Offer
Notice. 
  
 1.4.5 Amendment to
Lease. If Tenant timely exercises Tenant’s right to lease the Existing Building First Offer Space as set forth herein, Landlord and Tenant shall within fifteen (15) days thereafter execute an amendment to this Lease for such
Existing Building First Offer Space upon the TCCs set forth in the First Offer Notice and this Section 1.4. For each increment of Existing Building First Offer Space leased by Tenant, Tenant shall, concurrently with the execution of the
amendment adding such space as part of the Premises, deliver an additional “L-C,” as that term is defined in Section 21.3, or a replacement to the existing L-C such that, as of the execution of the amendment, Landlord is in
possession of one or more L-Cs with an aggregate face amount of (a) the “Original L-C Amount,” as that term is defined in Section 21.2 below, plus (b) the sum of (i) all leasing commissions paid by Landlord in
connection with Tenant’s leasing of the applicable Existing Building First Offer Space, (ii) all tenant improvement costs and/or allowances expended or granted by Landlord in connection with such space and (iii) six (6) months of
First Offer Rent, subject to adjustment for the then-applicable “Reduced L-C Amount,” as that term is defined in Section 21.2 below. The terms and conditions respecting the form, delivery, handling and drawing of or on L-C
shall be as described in Sections 21.2 and 21.3 below. 
  
 1.4.6 Termination of Right of First Offer. The rights contained in this Section 1.4 shall be personal to the Original Tenant, and may only be exercised by the Original Tenant (and not any
assignee, sublessee or other transferee of Tenant’s interest in this Lease) if Tenant occupies the entire Premises as of the date of the attempted exercise of the right of first offer by Tenant and as of the scheduled date of delivery of such
Existing Building First Offer Space to Tenant. The right of first offer granted herein shall terminate upon the failure by Tenant to exercise its right of first offer with respect to the Existing Building First Offer Space as offered by Landlord.
Notwithstanding the foregoing, Landlord shall have no obligation to offer the Existing Building First Offer Space (or any portion thereof) to Tenant and Tenant shall not have the right to lease the Existing Building First Offer Space (or any portion
thereof), as provided in this Section 1.4, (i) after the commencement of the fifth (5th) “Lease Year,” or (ii) if, as of the date of the attempted exercise of the right of first offer by Tenant, or as of the
scheduled date of delivery of such Existing Building First Offer Space to Tenant, Tenant is in default under this Lease or Tenant has previously been in default under this Lease more than once. 
  
 2. INITIAL LEASE TERM; OPTION TERM. 
  
 2.1 Initial Lease Term. The terms and provisions of this Lease
shall be effective as of the date of this Lease except for the provisions of this Lease relating to the payment of “Rent,” as that term is defined in Section 4.1, below. The term of this Lease (the “Lease Term”) shall
be as set forth in Section 7.1 of the Summary and shall commence on the date (the “Lease Commencement Date”) set forth in Section 7.2 of the Summary (subject to the terms of the Tenant Work Letter) and shall
terminate on the date (the “Lease Expiration Date”) set forth in Section 7.3 of the Summary, unless sooner terminated or extended as hereinafter provided. For purposes of this Lease, the term “Lease Year” shall
mean each consecutive twelve (12) month period during the Lease Term, commencing on the Lease Commencement Date and ending on the day before each anniversary thereof. At any time during the Lease Term, Landlord may deliver to Tenant a factually
correct notice of Lease Term dates in the form as set forth in Exhibit C, attached hereto, which notice Tenant shall execute and return to Landlord within five (5) business days of receipt thereof. Notwithstanding the foregoing, Tenant shall be
entitled to occupancy of the Premises when the same are “Ready for Occupancy” (as defined in Section 5.01 of the Tenant Work Letter), and further Tenant shall be allowed to early entry to the Premises in accordance with the terms of
Section 6.1 of the Tenant Work Letter for the purposes described therein. 
  
 2.2 Option Term. 
  
 2.2.1 Option Right. Landlord hereby grants the Original Tenant one (1) option to extend the Lease Term (“Extension Option”) for a period of five (5) years (the “Option
Term”), which option shall be execrable only by written notice delivered by Tenant to Landlord as provided below, provided that, as of the date of delivery of such notice, Tenant is not in default under this Lease (after the expiration of
any applicable cure periods) and Landlord has not delivered three (3) or more factually correct notices of Tenant’s default under this Lease during the last twelve (12) months immediately preceding the expiration of the initial Lease
Term. Upon the proper exercise of such option to extend, and provided that, as of the end of the initial Lease Term, Tenant is not in default 

  

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under this Lease (after the expiration of any applicable cure periods) and Landlord has not delivered three (3) or more factually correct notices of
Tenant’s default under this Lease during the last twelve (12) months immediately preceding the expiration of the initial Lease Term, the Lease Term, as it applies to the Initial Premises and the Existing Building First Offer Space (if
any), shall be extended for a period of five (5) years. The rights contained in this Section 2.2 shall be personal to the Original Tenant and any Permitted Transferee (as defined in Section 14.6 below) and may only be exercised
by the Original Tenant (and any Permitted Transferee, but not any other assignee, sublessee or other transferee of the Original Tenant’s interest in this Lease) if the Original Tenant occupies not less than seventy-five percent (75%) of
the Premises. 
  
 2.2.2 Option
Rent. The rent payable by Tenant during the Option Term with respect to the Initial Premises (the “Option Rent”) shall be the Rent (including Additional Rent and considering any “base year” applicable thereto),
including all escalations, at which tenants, as of the commencement of the Option Term, are leasing non-sublease, non-encumbered space comparable in size, location and quality to the Initial Premises for a term of five (5) years, which
comparable space is located in the Project, taking into consideration only the following concessions (collectively, the “Option Rent Concessions”): (a) rental abatement concessions, if any, being granted such tenants in
connection with such comparable space, (b) tenant improvements or allowances provided or to be provided for such comparable space, taking into account, and deducting the value of, the existing improvements in the Existing Building First Offer
Space, such value to be based upon the age, quality and layout of the improvements and the extent to which the same could be utilized by a general office user; and (c) leasing commissions that would be payable to licensed real estate brokers.
Notwithstanding anything to the contrary in the foregoing, in no event shall the “Base Rent,” as that term is defined in Section 3.1 below, payable by Tenant during the Option Term with respect to the Premises be less than the
“Prior Base Rent,” as that term is defined in Section 1.3.3 above, except the Prior Base Rent shall be determined as of the commencement of the Option Term. In the event that the base rent component of the Option Rent is the
Prior Base Rent, then (A) the new “Base Year,” as that term is defined in Section 4.2.1, below, with respect to the Premises shall be the calendar year in which the Option Term commences, and (B) the concessions
granted to Tenant in connection with the Existing Building First Offer Space shall be equal to the Option Rent Concessions. 
  
 2.2.3 Exercise of Option. The Extension Option contained in this Section 2.2 shall be exercised by Tenant, if at all,
only in the following manner: (i) Original Tenant shall deliver written notice to Landlord not more than three hundred sixty-five (365) days nor less than two hundred forty (240) days prior to the expiration of the initial Lease Term,
stating that Tenant is interested in exercising its option; (ii) Landlord, after receipt of Tenant’s notice, shall deliver notice (the “Option Rent Notice”) to Tenant not less than one hundred fifty (150) days prior
to the expiration of the initial Lease Term, setting forth the Option Rent; and (iii) if Tenant wishes to exercise such option, Tenant shall, on or before the date occurring thirty (30) days after Tenant’s receipt of the Option Rent
Notice, exercise the Extension Option by delivering written notice thereof to Landlord. 
  
 3. BASE RENT; ABATEMENT OF BASE RENT. 
  
 3.1 Base Rent. Tenant shall pay, without notice or demand, except as otherwise set forth in this Lease, to Landlord at its office in the Building, check for lawful money of the United States of America, base rent
(“Base Rent”) as set forth in Section 8 of the Summary, payable in equal monthly installments as set forth in Section 8 of the Summary in advance on or before the first day of each month during the Lease
Term, without any setoff or deduction whatsoever, except as otherwise set forth in this Lease. The Base Rent for the first full month of the Lease Term, which occurs after the expiration of any free rent period, shall be paid at the time of
Tenant’s execution of this Lease. If any rental payment date (including the Lease Commencement Date) falls on a day of the month other than the first day of such month or if any rental payment is for a period which is shorter than one month,
then the rental for any such fractional month shall be a proportionate amount of the full calendar month’s rental. All other payments or adjustments required to be made under the terms of this Lease that require proration on a time basis shall
be prorated on the same basis. 
  
 3.2 Abatement of
Rent. The parties acknowledge and agree that the Base Rent during the initial six (6) months of the Lease Term is based upon the same rental rate as is applicable for the remainder of the initial Lease Term (i.e., $2.35 per rentable
square foot), but that Landlord has agreed to abate the Base Rent that would otherwise be due hereunder during such six (6) month period in an amount equal to the product of the following (hereinafter, the “Abated Base Rent
Amount”): (a) the total rentable square footage of the portion of the Premises located on the second (2nd) floor of the Building (as the same may be adjusted pursuant to Section 1.2 of this Lease), divided by two (2);
multiplied by (b) Two and 35/100 Dollars ($2.35). For example, if the rentable square footage of the second floor of the Building remains as is stated in Section 6 of the Summary (i.e., 28,530 rentable square feet) and is not
adjusted pursuant to Section 1.2, then during the initial six (6) months of the Lease Term, the Base Rent shall equal the amount set forth in Section 8 of the Summary. 
  
 4. ADDITIONAL RENT 
  
 4.1 Additional Rent. In addition to paying the Base Rent
specified in Article 3 of this Lease, commencing on January 1, 2001, Tenant shall pay as additional rent Tenant’s Share of the annual Direct Expenses, which are in excess of Direct Expenses incurred in the “Base
Year,” as that term is defined in Section 4.2.1 of this Lease. Accordingly, Tenant shall not be obligated to pay Tenant’s Share of Direct Expenses for calendar years 1999 or 2000. Such additional rent, together with any and all
other amounts payable by Tenant to Landlord pursuant to the terms of this Lease (including Expansion Base Rent and First Offer Rent, but other than Base Rent for the Initial Premises), shall be hereinafter collectively referred to as the
“Additional Rent.” The Base Rent and Additional Rent are herein collectively referred to as the “Rent.” Without limitation on other obligations of Tenant which shall survive the expiration of the Lease Term, the
obligations of Tenant to pay the Additional Rent provided for in this Article 4 shall survive the expiration of the Lease Term. 
  
 4.2 Definitions. As used in this Article 4, the following terms shall have the meanings hereinafter set forth: 
  
 4.2.1 “Base Year” shall be the period set forth in
Section 9.1 of the Summary. 
  
 4.2.2
“Direct Expenses” shall mean “Operating Expenses” and “Tax Expenses.” 
  
 4.2.3 “Expense Year” shall mean each calendar year in which any portion of the Lease Term falls, through and including the
calendar year in which the Lease Term expires, provided that Landlord, upon notice to Tenant, may change the Expense Year from time to time to any other twelve (12) consecutive month period, and in the event of any such change, Tenant’s
Share of Direct Expenses shall be equitably adjusted for any Expense Year involved in any such change. 
  
 4.2.4 “Operating Expenses” shall mean all expenses, costs and amounts of every kind and nature which Landlord shall pay during
any Expense Year because of or in connection with the prudent ownership, management, maintenance, repair, replacement, restoration or operation of the Project, including, without limitation, any amounts paid for (i) the cost of supplying all
utilities, the cost of operating, maintaining, repairing, renovating and managing the utility systems, mechanical systems, sanitary and storm drainage systems, and any escalator and/or elevator systems, and the cost of supplies and equipment and
maintenance and 

  

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service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of contesting the validity or
applicability of any governmental enactments which may increase Operating Expenses, and the reasonable costs incurred in connection with the implementation and operation of a transportation system management program or similar program;
(iii) the cost of insurance carried by Landlord, in such amounts as Landlord may reasonably determine or as may be required by any mortgagees or the lessor of any underlying or ground lease affecting the Project and/or the Building;
(iv) the cost of landscaping, relamping, and all supplies, tools, equipment and materials used in the operation, repair and maintenance of the Project; (v) the cost of parking area repair, restoration, and maintenance, including, but not
limited to, resurfacing, repainting, restriping, and cleaning; (vi) reasonable fees, charges and other costs, including consulting fees, legal fees and accounting fees, of all contractors engaged by Landlord or otherwise reasonably incurred by
Landlord in connection with the management, operation, maintenance and repair of the Building and Project; (vii) any equipment rental agreements or management agreements (including the cost of any management fee and the fair rental value of any
office space provided thereunder); (viii) wages, salaries and other compensation and benefits of all persons engaged in the operation, management, maintenance or security of the Project, and employer’s Social Security taxes, unemployment
taxes or insurance, and any other taxes which may be levied on such wages, salaries, compensation and benefits; provided, that if any employees of Landlord provide services for more than one building of Landlord, then a prorated portion of such
employees’ wages, benefits and taxes shall be included in Operating Expenses based on the portion of their working time devoted to the Building; (ix) payments under any easement, license, operating agreement, declaration, restrictive
covenant, underlying or ground lease (excluding rent), or instrument pertaining to the sharing of costs by the Project; (x) operation, repair, maintenance and replacement of all “Systems and Equipment,” as that term is defined in
Section 4.2.6 of this Lease, and components thereof; (xi) the cost of janitorial service, alarm and security service, window cleaning, trash removal, replacement of wall and floor coverings, ceiling tiles and fixtures in lobbies,
corridors, restrooms and other common or public areas or facilities, maintenance and replacement of curbs and walkways, repair to roofs and re-roofing; (xii) amortization (including interest on the unamortized cost) of the cost of acquiring or
the rental expense of personal property used in the maintenance, operation and repair of the Building and Project; and (xiii) the cost of any capital improvements or other costs (I) which are intended as a labor-saving device or to effect
other economies in the operation or maintenance of the Building or Project, (II) made to the Building or Project that are required under any governmental law or regulation, or (III) which are reasonably determined by Landlord to be in the best
interest of the Building and/or Project; provided, however, that if any such cost described in (I), (II) or (III), above, is a capital expenditure, such cost shall be amortized (including interest on the unamortized cost at an interest rate
reasonably determined by Landlord but in no event at a rate in excess of the interest rate set forth in Article 25 of this Lease) over its useful life (in accordance with generally accepted accounting principles). If Landlord is not furnishing
any particular work or service (the cost of which, if performed by Landlord, would be included in Operating Expenses) to a tenant who has undertaken to perform such work or service in lieu of the performance thereof by Landlord, Operating Expenses
shall be deemed to be increased by an amount equal to the additional Operating Expenses which would reasonably have been incurred during such period by Landlord if it had at its own expense furnished such work or service to such tenant. If the
Project is not at least ninety-five percent (95%) occupied during all or a portion of any Expense Year, Landlord shall make an appropriate adjustment to the variable components of Operating Expenses for such year or applicable portion thereof,
in accordance with generally accepted accounting principles, to determine the amount of Operating Expenses that would have been paid had the Project been ninety-five percent (95%) occupied; and the amount so determined shall be deemed to have
been the amount of Operating Expenses for such year, or applicable portion thereof; provided, however, under no circumstances shall Tenant’s Share of Direct Expenses, as recalculated by Landlord, exceed the actual Operating Expenses incurred by
Landlord for the applicable Expense Year. The electrical component of Operating Expenses during all Expense Years shall be deemed to be at least as great as the electrical component of Operating Expenses during the Base Year. In no event shall
expenses for the repair, restoration and maintenance of the parking area be offset by any revenue generated from such parking area. Landlord shall have the right, from time to time, to equitably allocate some or all of the Operating Expenses among
different tenants of the Building or Project (the “Cost Pools”). Such Cost Pools may include, but shall not be limited to, the office space tenants of the Building or Project and the retail space tenants of the Building or Project.
Notwithstanding anything to the contrary set forth in this Article 4, when calculating Direct Expenses for the Base Year, Operating Expenses shall exclude market-wide labor-rate increases due to extraordinary circumstances, including, but not
limited to, boycotts and strikes, and utility rate increases due to extraordinary circumstances including, but not limited to, conservation surcharges, boycotts, embargoes or other shortages. 
  
 Notwithstanding the foregoing, Operating Expenses shall
not include the following: 
  
 (a) legal fees, brokerage
commissions, advertising costs, “tenant allowances” or “tenant concessions” in connection with the leasing of any portion of the Building or Project, or legal fees incurred in connection with the enforcement of other
tenant’s leases except to the extent such enforcement relates in any manner to such tenant’s compliance with the Rules and Regulations or its use or misuse, as the case may be, of the Common Areas; 
  
 (b) capital repairs, alterations, additions, improvements or replacements
connected with or arising from the Renovations to the Project (except as permitted in clause (xiii) above); or any repairs or replacements made to rectify or correct any defect in the design, materials or workmanship of any portion of the
Project; 
  
 (c) costs incurred in connection with damage or
repairs which are covered under any insurance policy carried by Landlord in connection with the Project; 
  
 (d) expenses for repair or replacement paid by condemnation awards; 
  
 (e) the cost of offsite service personnel to the extent that such personnel are not engaged in the management, operation,
repair or maintenance of the Project; 
  
 (f) charitable or
political contributions; 
  
 (g) Landlord’s general overhead
expenses not related to the Project; 
  
 (h) all principal,
interest, loan fees, and other carrying costs related to any mortgage or deed of trust encumbering the Project and all rental and other payable due under any ground or underlying lease, unless such costs are directly attributable to Tenant’s,
its agents’ or employees’ activities in, on or about the Project, or as a result of a Tenant’s breach or default under this Lease; 
  
 (i) costs (including permit, license and inspection fees) incurred in renovating or otherwise improving, decorating, painting, expanding or altering space
for tenants or other occupants of vacant, leasable space in the Project; 
  
 (j) services or installations furnished to any tenant in the Project which are not furnished to Tenant; 
  
 (k) the cost of any service provided to Tenant or other occupants of the Project for which Landlord is reimbursed directly, either before or after the
applicable Expense Year; 
  

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 (l) the costs of repairs and/or replacements of any roof, foundation, and structural support which is
part of the Project (except as permitted in clause (xiii) above); 
  
 (m) costs of acquisition of sculpture or other objects of art for the Project; 
  
 (n) costs related to the “Year 2000 problem” which could reasonably be avoided by corrections or repairs to the affected equipment in advance of the occurrence of any failure arising from such “Year
2000 problem;” 
  
 (o) any costs or fees associated with
damage or repairs, which are incurred by Landlord due to Landlord’s willful misconduct; 
  
 (p) Landlord’s costs of conforming any portion of the Building or Premises to the requirements of the Americans with Disabilities Act of 1990, as such Act is established and promulgated as of the date of this
Lease, provided that any costs of conforming any portion of the Building or Premises to any amendments or changes in the Act or in the enforcement of the rules or regulations promulgated under the Act after the date of this Lease shall be properly
chargeable as an Operating Expense in accordance with clause (xiii) above; and 
  
 (q) any costs or fees incurred by Landlord in connection with the remediation and/or monitoring of “Hazardous Material,” as that term is defined in Section 29.25 below (except to the extent
caused or exacerbated by Tenant and except for the removal of immaterial amounts of Hazardous Material from the Building or the Project in connection with Landlord’s normal maintenance and repair obligations under this Lease). 
  
 4.2.5 “Tax Expenses” shall mean all federal,
state, county, or local governmental or municipal taxes, fees, charges or other impositions of every kind and nature, whether general, special, ordinary or extraordinary (including, without limitation, real estate taxes, general and special
assessments, special assessment district payments, transit taxes, leasehold taxes or taxes based upon the receipt of rent, including gross receipts or sales taxes applicable to the receipt of rent, unless required to be paid by Tenant, personal
property taxes imposed upon the fixtures, machinery, equipment, apparatus, systems and equipment, appurtenances, furniture and other personal property used in connection with the Project), which Landlord shall pay because of or in connection with
the ownership, leasing and operation of the Project or Landlord’s interest therein. Landlord represents that it is not pursuing the formation or implementation of any new special assessment district that would encumber the Project, which has
not already been formed as of the date of this Lease. If in any Expense Year subsequent to the Base Year, the amount of Tax Expenses decreases below the amount of Tax Expenses in the Base Year, then for purposes of such Expense Year and all
subsequent Expense Years, the Base Year Tax Expenses shall be deemed to be reduced by the amount of such decrease. Tax Expenses shall include, without limitation: (i) any tax on Landlord’s rent, right to rent or other income from the
Project or as against Landlord’s business of leasing any of the Project; (ii) any assessment, tax, fee, levy or charge in addition to, or in substitution, partially or totally, of any assessment, tax, fee, levy or charge previously
included within the definition of real property tax, it being acknowledged by Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California in the June 1978 election (“Proposition 13”) and that
assessments, taxes, fees, levies and charges may be imposed by governmental agencies for such services as fire protection, street, sidewalk and road maintenance, refuse removal and for other governmental services formerly provided without charge to
property owners or occupants. It is the intention of Tenant and Landlord that all such new and increased assessments, taxes, fees, levies, and charges and all similar assessments, taxes, fees, levies and charges be included within the definition of
Tax Expenses for purposes of this Lease; (iii) any assessment, tax, fee, levy, or charge allocable to or measured by the area of the Premises or the rent payable hereunder, including, without limitation, any gross income tax with respect to the
receipt of such rent, or upon or with respect to the possession, leasing, operating, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises, or any portion thereof; and (iv) Any assessment, tax, fee, levy or
charge, upon this transaction or any document to which Tenant is a party, creating or transferring an interest or an estate in the Premises. If, by applicable law, any taxes or assessments may be paid in installments at the option of the taxpayer,
then whether or not Landlord elects to pay taxes and assessments in such installments, Tenant’s liability for such taxes and assessments shall be computed as if such election had been made, and only the installments thereof which would have
become due during the Term shall be included in Tenant’s Share of the Tax Expenses. 
  
 4.2.6 “Tenant’s Share” shall mean the percentage set forth in Section 9.2 of the Summary. Tenant’s Share
was calculated by multiplying the number of rentable square feet of the Premises, as set forth in Section 6 of the Summary, by 100, and dividing the product by the total number of rentable square feet in the Building. 
  
 4.3 Calculation and Payment of Additional Rent. 
  
 4.3.1 Calculation of Excess and Underage. If
for any Expense Year ending or commencing within the Lease Term, Tenant’s Share of Direct Expenses for such Expense Year exceeds Tenant’s Share of Direct Expenses for the Base Year, then Tenant shall pay to Landlord, in the manner set
forth in Section 4.3.2, below, and as Additional Rent, an amount equal to the excess (the “Excess”). 
  
 4.3.2 Statement of Actual Direct Expenses and Payment by Tenant. Following the end of each Expense Year, but in any event
not later than April 30 of each calendar year, Landlord shall give to Tenant a statement (the “Statement”) which Statement shall state the actual Direct Expenses incurred or accrued for such preceding Expense Year, and which
shall indicate the amount, if any, of any Excess or underage. Upon receipt of the Statement for each Expense Year ending during the Lease Term, if an Excess is present, Tenant shall pay, with its next installment of Base Rent, the full amount of the
Excess for such Expense Year, less the amounts, if any, paid during such Expense Year as “Estimated Excess,” as that term is defined in Section 4.3.3 below. Even though the Lease Term has expired and Tenant has vacated the
Premises, when the final determination is made of Tenant’s Share of the Direct Expenses for the Expense Year in which this Lease terminates, if an Excess is present, Tenant shall, within thirty (30) days of receipt of a Statement setting
forth the Excess, pay to Landlord an amount as calculated pursuant to the provisions of Section 4.3.1 of this Lease. In the event that an underage is present for any Expense Year, Landlord shall, at its election, pay to Tenant the amount
of such underage concurrent with Landlord’s delivery of the applicable statement or allow Tenant to offset the amount of such underage against Tenant’s installment(s) of Base Rent and/or Tenant’s Share of Direct Expenses next becoming
due. The provisions of this Section 4.3.2 shall survive the expiration or earlier termination of the Lease Term. 
  
 4.3.3 Statement of Estimated Direct Expenses. Landlord, at Landlord’s option, may elect to give Tenant a yearly expense
estimate statement (the “Estimate Statement”) which Estimate Statement shall set forth Landlord’s reasonable estimate (the “Estimate”) of what the total amount of Direct Expenses for the then-current Expense
Year shall be and the estimated Excess (the “Estimated Excess”) as calculated by comparing Tenant’s Share of Direct Expenses, which shall be based upon the Estimate, to Tenant’s Share of Direct Expenses for the Base Year.
The failure of Landlord to timely furnish the Estimate Statement for any Expense Year shall not preclude Landlord from enforcing its rights to collect any Estimated Excess under this Article 4. If pursuant to the Estimate Statement an
Estimated Excess is calculated for the then-current Expense Year, Tenant shall pay, with its next 

  

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installment of Base Rent, a fraction of the Estimated Excess for the then-current Expense Year (reduced by any amounts paid pursuant to the last sentence of
this Section 4.3.3). Such fraction shall have as its numerator the number of months which have elapsed in such current Expense Year to the month of such payment, both months inclusive, and shall have twelve (12) as its denominator.
Until a new Estimate Statement is furnished, Tenant shall pay monthly, with the monthly Base Rent installments, an amount equal to one-twelfth (1/12) of the total Estimated Excess set forth in the previous Estimate Statement delivered by
Landlord to Tenant. 
  
 4.4 Taxes and Other Charges for
Which Tenant Is Directly Responsible. Tenant shall reimburse Landlord within five (5) days of demand (with supporting documentation) for any and all taxes or assessments required to be paid by Landlord (except to the extent included in
Tax Expenses by Landlord), excluding state, local and federal personal or corporate income taxes measured by the net income of Landlord from all sources and estate and inheritance taxes, whether or not now customary or within the contemplation of
the parties hereto, when: 
  
 4.4.1 Said taxes
are measured by or reasonably attributable to the cost or value of Tenant’s equipment, furniture, fixtures and other personal property located in the Premises (excluding, however, the cost or value of the original leasehold improvements made in
or to the Premises by or for Tenant pursuant to the Tenant Work Letter set forth in Exhibit D attached hereto which shall be included in the Tax Expenses in the Base Year, but including the cost or value of any other leasehold improvements),
to the extent the cost or value of such other leasehold improvements exceeds the cost or value of a building standard build-out as determined by Landlord regardless of whether title to such improvements shall be vested in Tenant or Landlord;

  
 4.4.2 Said taxes are assessed upon or with
respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any portion of the Project (including the Building Parking Facility); 
  
 4.4.3 Said taxes are assessed upon this transaction or any
document to which Tenant is a party creating or transferring an interest or an estate in the Premises; or 
  
 4.4.4 Said assessments are levied or assessed upon the Project or any part thereof or upon Landlord and/or by any governmental authority
or entity, and relate to the construction, operation, management, use, alteration or repair of mass transit improvements. 
  
 4.5 Landlord’s Books and Records. Within one hundred eighty (180) days after receipt of a Statement by Tenant, if Tenant disputes
the amount of Additional Rent set forth in the Statement, an independent certified public accountant (which accountant is a member of a nationally recognized accounting firm and is working on a noncontingent fee basis), designated and paid for by
Tenant, may, after reasonable notice to Landlord and at reasonable times, inspect Landlord’s records at Landlord’s offices (or the Orange County office or next most local office in Southern California of Landlord’s property manager,
if Landlord does not have an office in Orange County, California), provided that Tenant is not then in default under this Lease (after applicable notice and cure periods) and Tenant has paid all amounts required to be paid under the applicable
Estimate Statement and Statement, as the case may be. In connection with such inspection, Tenant and Tenant’s agents must agree in advance to follow Landlord’s reasonable rules and procedures regarding inspections of Landlord’s
records, and shall execute a commercially reasonable confidentiality agreement regarding such inspection. Tenant’s failure to dispute the amount of Additional Rent set forth in any Statement within one hundred eighty (180) days following
Tenant’s receipt of such Statement shall be deemed to be Tenant’s approval of such Statement and Tenant, thereafter, waives the right or ability to dispute the amounts set forth in such Statement. If after such inspection, Tenant still
disputes such Additional Rent, a determination as to the proper amount shall be made, at Tenant’s expense, by an independent certified public accountant (the Accountant”) selected by Landlord and subject to Tenant’s reasonable
approval; provided that if such determination by the Accountant proves that Direct Expenses were overstated by more than five percent (5.0%), then the cost of the Accountant and the cost of such determination shall be paid for by Landlord.

  
 5. USE OF PREMISES Tenant shall use the premises only for the
purpose as set forth in Section 10 of the Summary (the “Permitted Use”) and for no other use or purpose, unless first approved in writing by Landlord, which approval Landlord may withhold in its sole discretion. Tenant
agrees that it shall not use, or permit any person to use, the Premises or any part thereof for any use or purpose contrary to the provisions of the Rules and Regulations set forth in Exhibit D, attached hereto, or in violation of the
laws of the United States of America, the State of California, or the ordinances, regulations or requirements of any local, municipal or county governing body or other lawful authorities having jurisdiction over the Building or Project. Tenant shall
comply with all recorded covenants, conditions, and restrictions (the “Existing CC&Rs”), and the provisions of all ground or underlying leases, now affecting the Project. In the event Landlord desires to record additional
covenants, conditions, and restrictions (the “Additional CC&Rs”) against the Project after the date of full execution of this Lease, Landlord shall, at its option, either (a) obtain Tenant’s consent thereto, which
consent shall not be unreasonably withheld, conditioned or delayed or (b) elect not to obtain Tenant’s consent thereto, in which event the provisions of this Lease shall prevail over any conflicting provisions of the Additional CC&Rs.
Landlord shall have the right to require Tenant to execute and acknowledge, within fifteen (15) business days of a request by Landlord, a “Recognition of Covenants, Conditions, and Restriction,” in a form substantially similar to that
attached hereto as Exhibit F, agreeing to and acknowledging the Additional CC&Rs, if Landlord has chosen the option described in the foregoing clause (a) and Tenant has consented thereto. Tenant shall not use or allow another person
or entity to use any part of the Premises for the storage, use, treatment, manufacture or sale of hazardous materials or hazardous substances (as defined under applicable laws). 
  
 6. SERVICES AND UTILITIES 
  
 6.1 Standard Tenant Services. Landlord shall, as its cost but as part of Direct Expenses, provide the following services and utilities
twenty-four (24) hours per day on every day during the Lease Term, unless otherwise stated below. 
  
 6.1.1 Subject to all governmental rules, regulations and guidelines applicable thereto, Landlord shall provide heating and air
conditioning when necessary for normal comfort for normal office use in the Premises (“HVAC”) from Monday through Friday from at least 7:00 a.m. to 7:00 p.m., and on Saturday from at least 8:00 a.m. to 2:00 p.m.,
except for the date of observation of nationally or locally recognized holidays, in Landlord’s sole discretion (collectively, the “Holidays”). The daily time periods identified hereinabove are sometimes referred to as the
“Business Hours.” 
  
 6.1.2 Landlord
shall at all times provide electricity to the Premises (including adequate electrical wiring and facilities for connection to Tenant’s lighting fixtures and other equipment) for lighting and power suitable for the Permitted Use. Landlord shall
also provide (i) city water for use in connection with any plumbing fixtures now or hereafter installed in the Premises and the Building in accordance with this Lease, (ii) janitorial services five (5) days per week except the date of
observation of the Holidays, in and about the Premises, and (iii) nonexclusive automatic passenger elevator service at all times. If Tenant uses electricity, water or heat or air conditioning in excess of that supplied by Landlord pursuant to
Section 6.1 of this Lease, Tenant shall pay to Landlord, within thirty (30) days of billing, the cost of such excess consumption, the cost of the installation, operation, and maintenance of 

  

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equipment which is installed in order to supply such excess consumption, and the cost of the increased wear and tear on existing equipment caused by such
excess consumption; and Landlord may install devices to separately meter any increased use and in such event Tenant shall pay the increased cost directly to Landlord, within thirty (30) days of demand, including the cost of such additional
metering devices. Landlord may increase the hours or days during which air conditioning, heating and ventilation are provided to the Premises and the Building to accommodate the usage by tenants occupying two-thirds or more of the rentable square
feet of the Building or to conform to practices of other buildings in the area comparable to the Building. 
  
 6.2 After-Hours Use. Upon request by Tenant, Landlord shall provide heat, ventilation and cooling adequate for the comfortable use and
occupancy of the Premises outside Business Hours (the “After-Hours HVAC”). Tenant shall pay Landlord within thirty (30) days of demand for any such After-Hours HVAC at the hourly cost established by Landlord for such
After-Hours HVAC, which hourly rate shall be fixed at Thirty ($30.00) Dollars per hour during the Lease Term. 
  
 6.3 Interruption of Use. Except as provided below, Tenant agrees that Landlord shall not be liable for damages, by abatement of rent or
otherwise, for failure to furnish or delay in furnishing any service (including telephone and telecommunication services), or for any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or
in part, by repairs, replacements, or improvements, by any strike, lockout or other labor trouble, by inability to secure electricity, gas, water, or other fuel at the Building after reasonable effort to do so, by any accident or casualty
whatsoever, by act or default of Tenant or other parties, or by any other cause beyond Landlord’s reasonable control; and such failures or delays or diminution shall never be deemed to constitute an eviction or disturbance of Tenant’s use
and possession of the Premises or relieve Tenant from paying rent or performing any of its obligations under this Lease. In the event that Tenant is prevented from using, and does not use, the Premises or any portion thereof, as a result of any
failure to provide services or utilities to the Premises as required by Section 6 of this Lease (such set of circumstances, as set forth above, to be known as an “Abatement Event”), then Tenant shall give Landlord notice
of such Abatement Event, and if such Abatement Event continues for five (5) consecutive business days after Landlord’s receipt of any such notice (the “Eligibility Period”), then the Base Rent and Tenant’s Share of
Direct Expenses shall be abated or reduced, as the case may be, after expiration of the Eligibility Period for such time that Tenant continues to be so prevented from using, and does not use, the Premises or a portion thereof, in the proportion that
the rentable area of the portion of the Premises that Tenant is prevented from using, and does not use, bears to the total rentable area of the Premises; provided, however, in the event that Tenant is prevented from using, and does not use, a
portion of the Premises for a period of time in excess of the Eligibility Period and the remaining portion of the Premises is not sufficient to allow Tenant to effectively conduct its business therein, and if Tenant does not conduct its business
from such remaining portion, then for such time after expiration of the Eligibility Period during which Tenant is so prevented from effectively conducting its business therein, the Base Rent and Tenant’s Share of Direct Expenses for the entire
Premises shall be abated for such time as Tenant continues to be so prevented from using, and does not use, the Premises. If, however, Tenant reoccupies any portion of the Premises and is conducting its business therein during such period, the Rent
allocable to such reoccupied portion, based on the proportion that the rentable area of such reoccupied portion of the Premises bears to the total rentable area of the Premises, shall be payable by Tenant from the date Tenant reoccupies such portion
of the Premises. Such right to abate Base Rent and Tenant’s Share of Direct Expenses shall be Tenant’s sole and exclusive remedy at law or in equity for an Abatement Event. Except as provided in this Section 6.3, nothing contained
herein shall be interpreted to mean that Tenant is excused from paying Rent due hereunder. Furthermore, Landlord shall not be liable under any circumstances for a loss of, or injury to, property or for injury to, or interference with, Tenant’s
business, including, without limitation, loss of profits, however occurring, through or in connection with or incidental to a failure to furnish any services or utilities. 
  
 7. REPAIRS Tenant shall, at Tenant’s own expense, keep the Premises, including all improvements, fixtures and furnishings
therein, in first class order, repair and condition, reasonable wear and tear and casualty excepted, at all times during the Lease Term. In addition, Tenant shall, at Tenant’s own expense but under the supervision and subject to the prior
approval of Landlord, and within any reasonable period of time, promptly and adequately repair all damage to the Premises and replace or repair all damaged or broken fixtures and appurtenances; provided however, that, at Landlord’s option, or
if Tenant fails to make such repairs, Landlord may, but need not, make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including, if Tenant fails to make such repairs and Landlord does so, a percentage of the cost
thereof (to be uniformly established for the Project, not to exceed, however, seven percent) sufficient to reimburse Landlord for all overhead, general conditions, fees and other costs or expenses arising from Landlord’s involvement with such
repairs and replacements forthwith upon being billed for same. Landlord may, but shall not be required to, enter the Premises at all reasonable times to make such repairs, alterations, improvements and additions to the Premises or to the Building or
to any equipment located in the Building as Landlord shall deem necessary or as Landlord may be required to do by governmental or quasi-governmental authority or court order or decree. Tenant hereby waives and releases its right to make repairs at
Landlord’s expense under Sections 1941 and 1942 of the California Civil Code, or under any similar law, statute, or ordinance now or hereafter in effect. 
  

8. ADDITIONS AND ALTERATIONS 
  
 8.1 Landlord’s Consent to Alterations. Tenant may not make any improvements, alterations, additions or changes to the Premises
(collectively, the “Alterations”) without first procuring the prior written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less than thirty (30) days prior to the commencement thereof,
and which consent shall not be unreasonably withheld by Landlord; provided, however, Tenant shall not be required to obtain Landlord’s consent to any Alterations in or to the Premises so long as (i) the aggregate cost of same does not
exceed Fifteen Thousand Dollars ($15,000) per occurrence or in the aggregate during each 12 month period, (ii) the Alterations do not affect or otherwise modify any structural components or mechanical systems in, about or to the Premises and
are not visible from the exterior of the Premises, and (iii) the Alterations do not diminish the value of the Building. With respect to Alterations for which Landlord’s consent is not required, Tenant shall nonetheless provide Landlord
with not less than twenty (20) days prior written notice of Tenant’s intention to make such Alterations, together with a copy of any and all plans and specifications for the same. The construction (and removal, as the case may be) of the
initial improvements to the Premises shall be governed by the terms of the Tenant Work Letter attached hereto as Exhibit B, and not the terms of this Article 8. 
  
 8.2 Manner of Construction. Landlord may impose, as a condition of its consent to all Alterations or repairs
of the Premises or about the Premises, such requirements as Landlord in its sole discretion may deem desirable, including, but not limited to, the requirement that upon Landlord’s request (made at the time Landlord gives its consent to the
proposed Alterations, if Tenant requests in writing that Landlord identify whether or not such Alterations must be removed upon the expiration or earlier termination of this Lease), Tenant shall, at Tenant’s expense, remove such Alterations
upon the expiration or any early termination of the Lease Term, and/or the requirement that Tenant utilize for such purposes only contractors, materials, mechanics and materialmen approved by Landlord. All work with respect to any Alterations must
be done in a good and workmanlike manner, by properly licensed and insured contractors, in compliance with all applicable laws and with Landlord’s construction rules and regulations, and diligently prosecuted to completion to the end that the
Premises shall at all times be a complete unit except during the period of work. In performing the work of any such Alterations, Tenant shall have the work performed in such manner as not to unreasonably obstruct access to the Building or Project or
the common areas for any other tenant of the Building, and as not to unreasonably obstruct the business of Landlord or other tenants of the Project, or interfere with the labor force working in the Project. In the event that Tenant makes any
Alterations, Tenant agrees to carry “Builder’s All Risk” insurance in an amount approved by Landlord covering the 

  

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construction of such Alterations, and such other insurance as Landlord may require, it being understood and agreed that all of such Alterations shall be
insured by Tenant pursuant to Article 10 of this Lease immediately upon completion thereof. In addition, Landlord may post notices of non-responsibility at the Premises and/or on the Building. Upon completion of any Alterations, Tenant agrees
to cause a Notice of Completion to be recorded in the office of the Recorder of the county in which the Building is located in accordance with Section 3093 of the Civil Code of the State of California or any successor statute, and Tenant shall
deliver to the Building management office a reproducible copy of the “as built” drawings of the Alterations (including Alterations for which Landlord’s consent is not required under Section 8.1 above). 
  
 8.3 Payment for Improvements. In the event Tenant orders any
Alteration or repair work directly from Landlord, or from the contractor approved by Landlord, the charges for such work shall be deemed Additional Rent under this Lease, payable upon billing therefor, either periodically during construction or upon
the substantial completion of such work, at Landlord’s option. Upon completion of such work, Tenant shall deliver to Landlord, if payment is made directly to contractors, evidence of payment, contractors’ affidavits and full and final
waivers of all liens for labor, services or materials. Whether or not Tenant orders any work directly from Landlord, Tenant shall pay to Landlord a percentage of the cost of such work (such percentage, which shall vary depending upon whether or not
Tenant orders the work directly from Landlord, to be established on a uniform basis for the Project, not to exceed, however, seven percent) sufficient to compensate Landlord for all overhead, general conditions, fees and other costs and expenses
arising from Landlord’s involvement with such work. 
  
 8.4
Landlord’s Property. All Alterations, improvements, fixtures and/or permanently affixed equipment which may be installed or placed in or about the Premises, and all signs installed in, on or about the Premises, from time to time,
shall be at the sole cost of Tenant and shall be and become the property of Landlord. Furthermore, Landlord may, by written notice to Tenant prior to the end of the Lease Term, or given upon any earlier termination of this Lease, require Tenant at
Tenant’s expense to remove such Alterations (including Alterations for which Landlord’s consent is not required under Section 8.1 above) and to repair any damage to the Premises, Building and Project caused by such removal,
provided that if Tenant requests in writing, at the time Tenant is seeking Landlord’s consent to the proposed Alterations (or, if Landlord’s consent is not otherwise required under Section 8.1 above, but Tenant chooses to
request), that Landlord identify whether or not such Alterations must be removed upon the expiration or earlier termination of this Lease, Tenant shall only be obligated to remove those Alterations so identified by Landlord for removal. If Tenant
fails to complete such removal and/or to repair any damage caused by the removal of any Alterations, Landlord may do so and may charge the cost thereof to Tenant. Tenant hereby indemnifies and holds Landlord harmless from any liability, cost,
obligation, expense or claim of lien in any manner relating to the installation, placement, removal or financing of any such Alterations, improvements, fixtures and/or equipment in, on or about the Premises. 
  
 9. COVENANT AGAINST LIENS Tenant has no authority or power to cause or permit
any lien or encumbrance of any kind whatsoever, whether created by act of Tenant, operation of law or otherwise, to attach to or be placed upon the Project, Building or Premises, and any and all liens and encumbrances created by Tenant shall attach
to Tenant’s interest only. Landlord shall have the right at all times to post and keep posted on the Premises any notice which it deems necessary for protection from such liens. Tenant covenants and agrees not to suffer or permit any lien of
mechanics or materialmen or others to be placed against the Project, the Building or the Premises with respect to work or services claimed to have been performed for or materials claimed to have been furnished to Tenant or the Premises, and, in case
of any such lien attaching or notice of any lien, Tenant covenants and agrees to cause it to be immediately released and removed of record. Notwithstanding anything to the contrary set forth in this Lease, in the event that such lien is not released
and removed on or before the date notice of such lien is delivered by Landlord to Tenant, Landlord, at its sole option, may immediately take all action necessary to release and remove such lien, without any duty to investigate the validity thereof,
and all sums, costs and expenses, including reasonable attorneys’ fees and costs, incurred by Landlord in connection with such lien shall be deemed Additional Rent under this Lease and shall immediately be due and payable by Tenant. 

 
 10. INSURANCE 
  
 10.1 Indemnification and Waiver. To the extent not prohibited by law, Landlord, its partners and their
respective officers, agents, servants, employees, and independent contractors (collectively, “Landlord Parties”) shall not be liable for any damage either to person or property or resulting from the loss of use thereof, which damage
is sustained by Tenant or by other persons claiming through Tenant. Tenant shall indemnify, defend, protect, and hold harmless Landlord Parties from any and all loss, cost, damage, expense and liability (including without limitation court costs and
reasonable attorneys’ fees) incurred in connection with or arising from any cause in, on or about the Premises, any acts, omissions or negligence of Tenant or any person claiming by, through or under Tenant, or of the contractors, agents,
servants, employees, invitees, guests or licensees of Tenant or any such person in, on, or about the Project, or any breach of the terms of this Lease, either prior to, during, or after the expiration of the Lease Term. Notwithstanding the
foregoing, Tenant shall not be required to protect, defend, save harmless or indemnify Landlord Parties from any liability for injury, loss, accident or damage to any person to the extent resulting from Landlord’s negligent acts or omissions or
willful misconduct or that of its agents, contractors, servants, employees or licensees, in connection with Landlord’s activities on or about the Premises, and Landlord hereby indemnifies and agrees to protect, defend and hold Tenant harmless
from and against such claims to the extent arising out of Landlord’s negligent acts or omissions or willful misconduct or those of its agents, contractors, servants, employees or licensees in connection with Landlord’s activities on or
about the Premises. Such exclusion from Tenant’s indemnity and such agreement by Landlord to so indemnify and hold Tenant harmless are not intended to and shall not relieve any insurance carrier of its obligations under policies required to be
carried by Tenant pursuant to the provisions of this Lease to the extent that such policies cover (or, if such policies would have been carried as required, would have covered) the result of negligent acts or omissions or willful misconduct of
Landlord or those of its agents, contractors, servants, employees or licensees; provided, however, the provisions of this sentence shall in no way be construed to imply the availability of any double or duplicate coverage. Landlord’s and
Tenant’s indemnification obligations hereunder may or may not be coverable by insurance, but the failure of either Landlord or Tenant to carry insurance covering the indemnification obligation shall not limit their indemnity obligations
hereunder. The provisions of this Section 10.1 shall survive the expiration or sooner termination of this Lease with respect to any claims or liability occurring prior to such expiration or termination. 
  
 10.2 Tenant’s Compliance with Landlord’s Fire and Casualty
Insurance. Tenant shall, at Tenant’s expense, comply as to the Premises with all insurance company requirements pertaining to the use of the Premises. If Tenant’s conduct or use of the Premises causes any increase in the premium
for such insurance policies, then Tenant shall reimburse Landlord for any such increase. Tenant, at Tenant’s expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National
Board of Fire Underwriters) and with any similar body. 
  
 10.3
Tenant’s Insurance. Tenant shall maintain Commercial General Liability Insurance covering the insured against claims of bodily injury, personal injury and property damage arising out of Tenant’s operations, assumed
liabilities or use of the Premises, including a Broad Form Commercial General Liability endorsement covering the insuring provisions of this Lease and the performance by Tenant of the indemnity agreements set forth in Section 10.1 of
this Lease, for limits of liability not less than $2,000,000.00 for each occurrence and $3,000,000.00 annual aggregate, with not more than 5% Insured’s participation. In addition, Tenant shall carry Physical Damage Insurance covering
(i) all office furniture, trade fixtures, office equipment, merchandise and all other items of Tenant’s property on the Premises installed by, for, or at the expense of Tenant, and (ii) all other improvements, 

  

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alterations and additions to the Premises made by or for Tenant, including any improvements, alterations or additions installed at Tenant’s request
above the ceiling of the Premises or below the floor of the Premises (but excluding the initial Tenant Improvements described in the Tenant Work Letter). Such insurance shall be written on an “all risks” of physical loss or damage basis,
for the full replacement cost value new without deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include a vandalism and malicious mischief endorsement,
sprinkler leakage coverage and earthquake sprinkler leakage coverage. 
  
 10.4 Form of Policies. The minimum limits of policies of insurance required of Tenant under this Lease shall in no event limit the liability of Tenant under this Lease. Such insurance shall (i) name Landlord,
Landlord’s lender (and, if Landlord elects, its partners or members) and Landlord’s property manager, as additional insureds; (ii) specifically cover the liability assumed by Tenant under this Lease, including, but not limited to,
Tenant’s obligations under Section 10.1 of this Lease; (iii) be issued by an insurance company having a rating of not less than A-X in Best’s Insurance Guide or which is otherwise acceptable to Landlord and licensed to do
business in the state in which the Building is located; (iv) be primary insurance as to all claims thereunder and provide that any insurance carried by Landlord is excess and is non-contributing with any insurance requirement of Tenant;
(v) provide that said insurance shall not be canceled or coverage changed unless thirty (30) days’ prior written notice shall have been given to Landlord and any mortgagee or ground or underlying lessor of Landlord. Tenant shall
deliver said policy or policies or certificates thereof to Landlord on or before the Lease Commencement Date and at least thirty (30) days before the expiration dates thereof. In the event Tenant shall fail to procure such insurance, or to
deliver such policies or certificate, Landlord may, at its option, procure such policies for the account of Tenant, and the cost thereof shall be paid to Landlord as Additional Rent within five (5) days after delivery to Tenant of bills
therefor. 
  
 10.5 Subrogation. Landlord and Tenant
agree to have their respective insurance companies issuing property damage insurance waive any rights of subrogation that such companies may have against Landlord or Tenant, as the case may be, so long as the insurance carried by Landlord and
Tenant, respectively, is not invalidated thereby. As long as such waivers of subrogation are contained in their respective insurance policies, Landlord and Tenant hereby waive any right that either may have against the other on account of any loss
or damage to their respective property to the extent such loss or damage is insurable under policies of insurance for fire and all risk coverage, theft, public liability, or other similar insurance. 
  
 10.6 Additional Insurance Obligations. Tenant shall carry and
maintain during the entire Lease Term, at Tenant’s sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 10, and such other reasonable types of insurance coverage and in such
reasonable amounts covering the Premises and Tenant’s uses and operations therein, as may be commercially reasonable for tenants leasing space in premises similar to the Premises and with uses and operations similar to Tenant’s uses and
operations; provided that Landlord shall not request such adjustments more than once each Lease Year. 
  
 10.7 Landlord’s Insurance. Landlord shall provide all of the following types of insurance, with commercially reasonable deductibles in
amounts as may be determined by Landlord in its reasonable discretion: (i) “all risk” property insurance, subject to standard exclusions, covering the Building, and such other risks as Landlord or its mortgagees may from time to time
deem appropriate, including leasehold improvements made by Landlord that are a part of the real property comprising the Building, and (ii) commercial general liability coverage covering the common areas of the Project for limits of liability
not less than $2,000,000.00 for each occurrence and $3,000,000.00 annual aggregate. Landlord shall not be required to carry insurance on Tenant’s property including trade fixtures, furnishings, equipment and all other items of personal
property. If Landlord requires Tenant to increase the limits on Tenant’s commercial general liability insurance coverage, as provided in Section 10.6 above, Landlord shall concurrently maintain limits at least as much as it is
requiring of Tenant. 
  
 11. DAMAGE AND DESTRUCTION 
  
 11.1 Repair of Damage to Premises by Landlord. If the Premises
or any common areas of the Building serving or providing access to the Premises shall be damaged by fire or other casualty, Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters beyond
Landlord’s reasonable control, and subject to all other terms of this Article 11, restore the damaged areas (excluding, however, Tenant’s property including trade fixtures, furnishings, equipment and all other items of personal
property). Such restoration shall be to substantially the same condition existing prior to the casualty, except for modifications required by zoning and building codes and other laws or by the holder of a mortgage on the Building, or the lessor of a
ground or underlying lease with respect to the Project and/or the Building, or any other modifications to the common areas deemed desirable by Landlord, provided access to the Premises and any common restrooms serving the Premises shall not be
materially impaired and provided further that the overall quality and appearance is not diminished. Notwithstanding any other provision of this Lease, upon the occurrence of any damage to the Premises, Tenant shall assign to Landlord (or to any
party designated by Landlord) all insurance proceeds (if any payable to Tenant under Tenant’s insurance carried on or with respect to the Tenant Improvements (as defined in the Work Letter), and Landlord shall repair any injury or damage to the
Tenant Improvements installed in the Premises and shall return such Tenant Improvements to their original condition; provided that if the cost of such repair by Landlord exceeds the amount of insurance proceeds received by Landlord from
Tenant’s insurance carrier, as assigned by Tenant, and that is received by Landlord from Landlord’s insurance carrier (if any), the cost of such repairs shall be paid by Tenant to Landlord prior to Landlord’s repair of the damage. In
connection with such repairs and replacements, Tenant shall, prior to the commencement of construction, submit to Landlord, for Landlord’s review and approval, all plans, specifications and working drawings relating thereto, and Landlord shall
select the contractors to perform such improvement work. Landlord shall not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant’s business resulting in any way from such damage or the repair thereof;
provided however, that if such fire or other casualty shall have damaged the Premises or common areas necessary to Tenant’s occupancy, and if such damage is not the result of the willful misconduct of Tenant or Tenant’s employees,
contractors, licensees, or invitees, Landlord shall allow Tenant a proportionate abatement of Rent, during the time and to the extent the Premises are unfit for occupancy for the purposes permitted under this Lease, and not occupied by Tenant as a
result thereof. 
  
 11.2 Landlord’s Option to
Repair. Notwithstanding the terms of Section 11.1 of this Lease, Landlord may elect not to rebuild and/or restore the Premises and/or Building and instead terminate this Lease, effective as of the later of the date of such
destruction or the date Tenant vacates the Premises, by notifying Tenant in writing of such termination within sixty (60) days after the date of discovery of such damage, but Landlord may so elect only if the Building or Project shall be
damaged by fire or other casualty or cause, whether or not the Premises are affected, and one or more of the following conditions is present: (i) repairs cannot reasonably be completed within one hundred eighty (180) days of the date of
discovery of damage (when such repairs are made without the payment of overtime or other premiums); (ii) the holder of any mortgage on the Building or Project or ground or underlying lessor with respect to the Project and/or the Building shall
require that the insurance proceeds or any portion thereof be used to retire the mortgage debt, or shall terminate the ground or underlying lease, as the case may be; or (iii) the damage is not fully covered, except for deductible amounts, by
Landlord’s insurance policies. In addition, in the event that the Premises, the Building or the Project is destroyed or damaged to any substantial extent during the last twelve (12) months of the Lease Term (as the same may be extended)
and the time period for restoration is estimated by Landlord to exceed forty-five (45) days, then notwithstanding anything contained in this Article 11, Tenant and Landlord shall each have the option to terminate this Lease, effective as
of the later of the date 

  

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of such destruction or the date Tenant vacates the Premises, by giving written notice to the other of the exercise of such option within thirty
(30) days after the date of such damage or destruction, in which event this Lease shall cease and terminate as of the date of such destruction or vacation, as applicable. Upon any such termination of this Lease pursuant to this
Section 11.2, Tenant shall pay the Base Rent and Additional Rent, properly apportioned up to such date of termination, and both parties hereto shall thereafter be freed and discharged of all further obligations hereunder, except as
provided for in provisions of this Lease which by their terms survive the expiration or earlier termination of the Lease Term. 
  
 11.3 Waiver of Statutory Provisions. The provisions of this Lease, including this Article 11, constitute an express agreement between
Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, the Building or any other portion of the Project, and any statute or regulation of the state in which the Building is located, including,
without limitation, Sections 1932(2) and 1933(4) of the California Civil Code, with respect to any rights or obligations concerning damage or destruction in the absence of an express agreement between the parties, and any other statute or
regulation, now or hereafter in effect, shall have no application to this Lease or any damage or destruction to all or any part of the Premises, the Building or any other portion of the Project. 
  
 12. NONWAIVER No waiver of any provision of this Lease shall be implied by
(i) any failure of either party to insist in any instance on the strict keeping, observance or performance of any covenant or agreement contained in this Lease or exercise any election contained in this Lease, or (ii) any failure of either
party to enforce any remedy on account of the violation of such provision, even if such violation shall continue or be repeated subsequently. Any waiver by either party of any provision of this Lease may only be in writing, and no express waiver
shall affect any provision other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 
  
 13. CONDEMNATION If the whole or any part of the Premises, Building or Project shall be taken by power of eminent domain or condemned by any competent
authority for any public or quasi-public use or purpose, or if any adjacent property or street shall be so taken or condemned, or reconfigured or vacated by such authority in such manner as to require the use, reconstruction or remodeling of any
part of the Premises, Building or Project, or if Landlord shall grant a deed or other instrument in lieu of such taking by eminent domain or condemnation, Landlord shall have the option to terminate this Lease upon ninety (90) days’
notice, provided such notice is given no later than one hundred eighty (180) days after the date of such taking, condemnation, reconfiguration, vacation, deed or other instrument. If more than fifteen percent (15%) of the rentable square
feet of the Premises is taken, or if access to the Premises is substantially impaired, Tenant shall have the option to terminate this Lease upon ninety (90) days’ notice, provided such notice is given no later than one hundred eighty
(180) days after the date of such taking. Landlord shall be entitled to receive the entire award or payment in connection therewith, except that Tenant shall have the right to file any separate claim available to Tenant for any taking of
Tenant’s goodwill, personal property and fixtures belonging to Tenant and removable by Tenant upon expiration of the Lease Term pursuant to the terms of this Lease, and for moving expenses, so long as such claim does not diminish the award
available to Landlord, its ground lessor with respect to the Project or its mortgagee, and such claim is payable separately to Tenant. All Rent shall be apportioned as of the date of such termination, or the date of such taking, whichever shall
first occur. If any part of the Premises shall be taken, and this Lease shall not be so terminated, the Rent shall be proportionately abated. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of the
California Code of Civil Procedure. 
  
 14. ASSIGNMENT AND SUBLETTING

  
 14.1 Transfers. Tenant shall not, without
the prior written consent of Landlord, assign, mortgage, pledge, encumber or otherwise transfer, this Lease or any interest hereunder, permit any assignment or other such foregoing transfer of this Lease or any interest hereunder by operation of
law, or sublet the Premises or any part thereof (all of the foregoing are hereinafter sometimes referred to collectively as “Transfers” and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to
as a “Transferee”). To request Landlord’s consent to any Transfer, Tenant shall notify Landlord in writing, which notice (the “Transfer Notice”) shall include (i) the proposed effective date of the
Transfer, which shall not be less than thirty (30) days after the date of delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the “Subject Space”), (iii) all of the
terms of the proposed Transfer and the consideration therefor, including a calculation of the “Transfer Premium,” as that term is defined in Section 14.3 below, in connection with such Transfer, the name and address of the
proposed Transferee, and a copy of all existing and/or proposed documentation pertaining to the proposed Transfer, including all existing operative documents to be executed to evidence such Transfer or the agreements incidental or related to such
Transfer, (iv) current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, and any other information required by Landlord, which will enable Landlord to determine the financial responsibility,
character, and reputation of the proposed Transferee, nature of such Transferee’s business and proposed use of the Subject Space, and such other information as Landlord may reasonably require, and (v) a processing fee in the amount of
Three Hundred and No/100 Dollars ($300.00) (the “Pre-paid Processing Feet”). Any Transfer made without Landlord’s prior written consent shall, at Landlord’s option, be null, void and of no effect, and shall, at
Landlord’s option, constitute a default by Tenant under this Lease. Whether or not Landlord shall grant consent, Tenant shall pay Landlord’s Pre-paid Processing Fee, as well as any reasonable legal fees incurred by Landlord, within thirty
(30) days after written request by Landlord. 
  
 14.2
Landlord’s Consent. Landlord shall not unreasonably withhold or condition its consent to any proposed Transfer of the Subject Space to the Transferee on the terms specified in the Transfer Notice. The parties hereby agree that it
shall be reasonable under this Lease and under any applicable law for Landlord to withhold consent to any proposed Transfer where one or more of the following apply, without limitation as to other reasonable grounds for withholding consent:

  
 14.2.1 The Transferee is of a character or
reputation or engaged in a business which is not consistent with the quality of the Project; 
  
 14.2.2 The Transferee intends to use the Subject Space for purposes which are not permitted under this Lease; 
  
 14.2.3 The Transferee is either a governmental agency or
instrumentality thereof; 
  
 14.2.4 The
Transferee is not a party of equal or greater financial worth and/or financial stability as Tenant as of the date of this Lease; 
  
 14.2.5 The proposed Transfer would cause Landlord to be in violation of another lease or agreement to which Landlord is a party, or would
give an occupant of the Building a right to cancel its lease; 
  
 14.2.6 The terms of the proposed Transfer will allow the Transferee to exercise a right of renewal, right of expansion, right of first offer, or other similar right held by Tenant (or will allow the Transferee to
occupy space leased by Tenant pursuant to any such right); or 
  

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 14.2.7 Either the proposed Transferee, or any person or entity which directly or
indirectly, controls, is controlled by, or is under common control with, the proposed Transferee, (i) occupies space in the Project at the time of the request for consent, (ii) is negotiating with Landlord to lease space in the Project at
such time, or (iii) has negotiated with Landlord during the six (6)-month period immediately preceding the Transfer Notice. 
  
 If Landlord consents to any Transfer pursuant to the terms of this Section 14.2 (and does not exercise any recapture rights Landlord may have
under Section 14.4 of this Lease), Tenant may within six (6) months after Landlord’s consent, but not later than the expiration of said six-month period, enter into such Transfer of the Premises or portion thereof, upon
substantially the same terms and conditions as are set forth in the Transfer Notice furnished by Tenant to Landlord pursuant to Section 14.1 of this Lease. If Landlord fails to notify Tenant in writing of its approval or disapproval of
any proposed Transfer within the applicable thirty (30) day period, then, provided after the expiration of such thirty (30) day period Tenant has delivered an additional written notice to Landlord specifying in all capital letters and
boldface type on page one of such notice the following: “YOUR FAILURE TO APPROVE OR DISAPPROVE OF THE ASSIGNMENT OR SUBLEASE SET FORTH IN THIS NOTICE WITHIN FIVE (5) BUSINESS DAYS SHALL ENTITLE THE TENANT NAMED HEREIN TO ENTER INTO SUCH
ASSIGNMENT OR SUBLEASE WITHOUT YOUR CONSENT,” and Landlord fails to respond within five (5) business days after receipt of such written notice, Landlord shall be deemed to have approved such assignment or subletting. 
  
 14.3 Transfer Premium. If Landlord consents to a Transfer, as a
condition thereto which the parties hereby agree is reasonable, Tenant shall pay to Landlord any “Transfer Premium,” as that term is defined in this Section 14.3, actually received by Tenant from such Transferee. “Transfer
Premium” shall mean all rent, additional rent or other consideration payable by such Transferee in excess of the Rent and Additional Rent payable by Tenant under this Lease on a per rentable square foot basis if less than all of the Premises is
transferred. “Transfer Premium” shall also include, but not be limited to, key money and bonus money paid by Transferee to Tenant in connection with such Transfer, and any payment in excess of fair market value for services rendered by
Tenant to Transferee or for assets, fixtures, inventory, equipment, or furniture transferred by Tenant to Transferee in connection with such Transfer. In the calculations of the Rent (as it relates to the Transfer Premium calculated under this
Section 14.3), and the Transferee’s Rent and Quoted Rent under Section 14.2 of this Lease, the Rent paid during each annual period for the Subject Space, and the Transferee’s Rent and the Quoted Rent, shall be
computed after adjusting such rent to the actual effective rent to be paid, taking into consideration any and all reasonable leasehold concessions granted in connection therewith, including, but not limited to, any reasonable rent credit commissions
and tenant improvement allowance, and Tenant’s reasonable third-party fees and costs by including reasonable attorneys’ fees, incurred in negotiating, documenting and consummating the Transfer. For purposes of calculating any such
effective rent, all such concessions shall be amortized on a straight-line basis over the relevant term. 
  
 14.4 Landlord’s Option as to Subject Space. Notwithstanding anything to the contrary contained in this Article 14 (except as
provided in Section 14.6 below), Landlord shall have the option, by giving written notice to Tenant within ten (10) business days after receipt of any Transfer Notice, to recapture the Subject Space. Such recapture notice shall
cancel and terminate this Lease with respect to the Subject Space as of the effective date of the proposed Transfer until the last day of the term of the Transfer as set forth in the Transfer Notice. In the event of a recapture by Landlord, if this
Lease shall be canceled with respect to less than the entire Premises, the Rent reserved herein shall be prorated on the basis of the number of rentable square feet retained by Tenant in proportion to the number of rentable square feet contained in
the Premises, and this Lease as so amended shall continue thereafter in full force and effect, and upon request of either party, the parties shall execute written confirmation of the same. Notwithstanding the above, Tenant shall have the right to
rescind Landlord’s recapture by providing written notice to Landlord within 10 days following receipt of Landlord’s notice of recapture that it will not effect the Transfer. 
  
 14.5 Effect of Transfer. If Landlord consents to a Transfer, (i) the terms and conditions of this Lease
shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed consent to any further Transfer by either Tenant or a Transferee, (iii) Tenant shall deliver to Landlord, promptly after execution, an
original executed copy of all documentation pertaining to the Transfer in form reasonably acceptable to Landlord, (iv) Tenant shall furnish upon Landlord’s request a complete statement, certified by an independent certified public
accountant, or Tenant’s chief financial officer, setting forth in detail the computation of any Transfer Premium Tenant has derived and shall derive from such Transfer, and (v) no Transfer relating to this Lease or agreement entered into
with respect thereto, whether with or without Landlord’s consent, shall relieve Tenant or any guarantor of the Lease from liability under this Lease. Landlord or its authorized representatives shall have the right at all reasonable times to
audit the books, records and papers of Tenant relating to any Transfer, and shall have the right to make copies thereof. If the Transfer Premium respecting any Transfer shall be found understated, Tenant shall, within thirty (30) days after
demand, pay the deficiency, and if understated by more than ten percent (10%), Landlord shall have the right to cancel this Lease upon thirty (30) days’ notice to Tenant. 
  
 14.6 Permitted Transfers. Any provision in this Lease to the contrary notwithstanding, Landlord’s consent
shall not be required for any of the following transfers (each of which shall be a “Permitted Transfer” and each such transferee shall by a “Permitted Transferee”), provided that such Permitted Transfer is not a
subterfuge by Tenant to avoid its obligations under this Lease or to avoid the operation of Sections 14.3 or 14.4 hereof, and that the applicable Permitted Transferee shall have a tangible net worth (not including goodwill as an asset)
computed in accordance with generally accepted accounting principles (the “Net Worth”) at least equal to the greater of (A) the Net Worth of Tenant immediately prior to such assignment or sublease, or (B) the Net Worth on
the date of this Lease of the Original Tenant: (i) to any person(s) or entity who controls, is controlled by or is under common control with Tenant, (ii) to any entity resulting from the merger, consolidation or other reorganization of
Tenant, whether or not Tenant is the surviving entity or (iii) to any person or legal entity which acquires all or substantially all of the assets or stock of Tenant; provided, that before such assignment or sublease shall be effective,
(x) said Permitted Transferee shall assume, in full, the obligations of Tenant under this Lease, (y) Landlord shall be given written notice of such assignment and assumption and (z) the use of the Premises by the Permitted Transferee
shall be as set forth in Article 10 of the Summary of Basic Lease Information. For purposes of this paragraph, a public or private offering of Tenant’s stock is a Permitted Transfer and the term “control” means possession,
directly or indirectly, of the power to direct or cause the direction of the management, affairs and policies of anyone, whether through the ownership of voting securities, by contract or otherwise. The provisions of Section 14.3 of this
Lease concerning Transfer Premiums shall not apply to an assignment or sublease by Tenant to a Permitted Transferee. Notwithstanding anything to the contrary contained in this Lease, a Permitted Transferee shall have the rights and privileges
provided to Original Tenant and shall be deemed to be an Original Tenant. Further, notwithstanding any provision to the contrary contained in this Section 14, Tenant shall have the right, without Landlord’s consent and without the
application of the provisions of Section 14.3, to enter into one or more subleases of portions of the Premises not exceeding ten percent (10%) of the Premises, in the aggregate, to any one or more legal entities in which Tenant
maintains an ownership interest or to any other legal entity with which Tenant has entered into a written business venture or written strategic alliance for the development of Tenant’s business, provided that each such sublease is not a
subterfuge by Tenant to avoid its obligations under this Lease or to avoid the operation of Sections 14.3 or 14.4 hereof. 
  
 15. OWNERSHIP AND REMOVAL OF TRADE FIXTURES 
  
 15.1 Surrender of Premises. No act or thing done by Landlord or any agent or employee of Landlord during the Lease Term shall be deemed to
constitute an acceptance by Landlord of a surrender of the Premises unless such intent is specifically acknowledged in a writing signed by Landlord. The delivery of keys to the Premises to Landlord or any agent or employee of Landlord 

  

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shall not constitute a surrender of the Premises or effect a termination of this Lease, whether or not the keys are thereafter retained by Landlord, and
notwithstanding such delivery Tenant shall be entitled to the return of such keys at any reasonable time upon request until this Lease shall have been properly terminated. 
  
 15.2 Removal of Tenant Property by Tenant. Upon the expiration of the Lease Term, or upon any earlier
termination of this Lease, Tenant shall, subject to the provisions of this Article 15, quit and surrender possession of the Premises to Landlord in as good order and condition as when Tenant took possession and as thereafter improved by
Landlord and/or Tenant, reasonable wear and tear excepted. Upon such expiration or termination, Tenant shall, without expense to Landlord, remove or cause to be removed from the Premises all debris and rubbish, and such items of furniture,
equipment, free-standing cabinet work, and other articles of personal property owned by Tenant or installed or placed by Tenant at its expense in the Premises, and such similar articles of any other persons claiming under Tenant, as Landlord may, in
its sole discretion, require to be removed, and Tenant shall repair at its own expense all damage to the Premises, Building and Project resulting from such removal. 
  
 16. HOLDING OVER If Tenant holds over after the expiration of the Lease Term hereof, with or without the express or implied
consent of Landlord, such tenancy shall be from month-to-month only, and shall not constitute a renewal hereof or an extension for any further term, and in such case Base Rent shall be payable at a monthly rate equal to one hundred fifty percent
(150%) the Base Rent applicable during the last rental period of the Lease Term under this Lease. Such month-to-month tenancy shall be subject to every other term, covenant and agreement contained herein. Nothing contained in this Article
16 shall be construed as consent by Landlord to any holding over by Tenant, and Landlord expressly reserves the right to require Tenant to surrender possession of the Premises to Landlord as provided in this Lease upon the expiration or other
termination of this Lease. The provisions of this Article 16 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. If Tenant fails to surrender the Premises within thirty
(30) days after the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss, costs (including reasonable
attorneys’ fees) and liability resulting from such failure, including, without limiting the generality of the foregoing, any claims made by any succeeding tenant founded upon such failure to surrender, and any lost profits to Landlord resulting
therefrom. 
  
 17. ESTOPPEL CERTIFICATE Within ten (10) days
following a party’s receipt of a request in writing by the other party, Tenant or Tenant, as the case may be, shall execute and deliver to the other party an estoppel certificate, which shall be substantially in the form of Exhibit E,
attached hereto, (or such other form as may be required by any prospective mortgagee, lender or purchaser of the Project, or any portion thereof, or of Tenant or Tenant’s business, as the case may be), indicating therein any exceptions thereto
that may exist at that time, and shall also contain any other information reasonably requested by such party or their mortgagee, lender or prospective mortgagee or lender. Tenant or Landlord shall execute and deliver whatever other instruments may
be reasonably required for such purposes. Failure of Tenant to timely execute and deliver such estoppel certificate or other instruments shall constitute an acceptance of the Premises and an acknowledgment by Tenant that statements included in the
estoppel certificate are true and correct, without exception. Notwithstanding the foregoing, Tenant’s execution of an estoppel certificate shall not be deemed to be a waiver of Tenant’s rights to audit or challenge Tenant’s Share of
Direct Expenses in accordance with the provisions of Section 4.5 above. 
  
 18. SUBORDINATION This Lease is subject and subordinate to all present and future ground or underlying leases of the Project and to the lien of any mortgages or trust deeds, now or hereafter in force against the Project and
the Building, if any, and to all renewals, extensions, modifications, consolidations and replacements thereof, and to all advances made or hereafter to be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages
or trust deeds, or the lessors under such ground lease or underlying leases, require in writing that this Lease be superior thereto. Landlord agrees to use its commercially reasonable efforts to obtain a subordination, nondisturbance and attornment
agreement from all beneficiaries of all deeds of trust encumbering the Premises as of the date hereof (if any), provided that the delivery thereof is not a condition precedent to Tenant’s obligations under this Lease. Tenant covenants and
agrees in the event any proceedings are brought for the foreclosure of any such mortgage, or if any ground or underlying lease is terminated, to attorn, without any deductions or set-offs whatsoever, to the purchaser upon any such foreclosure sale,
or to the lessor of such ground or underlying lease, as the case may be, if so requested to do so by such purchaser or lessor, and to recognize such purchaser or lessor as the lessor under this Lease, provided that Tenant shall not be disturbed in
its possession under this Lease by any such successor so long Tenant is not in default hereunder beyond any applicable notice and cure periods. Tenant shall, within ten (10) days of request by Landlord, execute such further instruments or
assurances as Landlord may reasonably deem necessary to evidence or confirm the subordination or superiority of this Lease to any such mortgages, trust deeds, ground leases or underlying leases. Tenant hereby irrevocably authorizes Landlord to
execute and deliver in the name of Tenant any such instrument or instruments if Tenant fails to do so, provided that such authorization shall in no way relieve Tenant from the obligation of executing such instruments of subordination or superiority.
Tenant waives the provisions of any current or future statute, rule or law which may give or purport to give Tenant any right or election to terminate or otherwise adversely affect this Lease and the obligations of the Tenant hereunder in the event
of any foreclosure proceeding or sale. 
  
 19. DEFAULTS; REMEDIES

  
 19.1 Events of Default. The occurrence of
any of the following shall constitute a default of this Lease by Tenant: 
  
 19.1.1 Any failure by Tenant to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, within five (5) days after written notice from Landlord to Tenant of such failure;
provided however, that any such notice shall be in lieu of, and not in addition to, any notice required under California Code of Civil Procedure Section 1161 or any similar or successor law; 
  
 19.1.2 Any failure by Tenant to respond to Landlord’s
request under Article 17 or 18 within the time permitted therein for such response; or 
  
 19.1.3 Any failure by Tenant to observe or perform any other provision, covenant or condition of this Lease to be observed or performed by
Tenant, including, but not limited to, the Rules and Regulations set forth in Exhibit D, attached hereto, where such failure continues for thirty (30) days after written notice thereof from Landlord to Tenant; provided however, that any
such notice shall be in lieu of, and not in addition to, any notice required under California Code of Civil Procedure Section 1161 or any similar or successor law; and provided further that if the nature of such default is such that the same
cannot reasonably be cured within a thirty (30)-day period, Tenant shall not be deemed to be in default if it diligently commences such cure within such period and thereafter diligently proceeds to rectify and cure said default as soon as possible;
or 
  
 19.1.4 Abandonment of the Premises by
Tenant unless Tenant properly secures the Premises from vandals. 
  
 19.2 Remedies Upon Default. Upon the occurrence of any event of default by Tenant, Landlord shall have, in addition to any other remedies available to Landlord at law or in equity, the option to pursue any one or more of the
following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever. 
  

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 19.2.1 Terminate this Lease, in which event Tenant shall immediately surrender the
Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other
person who may be occupying the Premises or any part thereof, without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant the following: (i) the worth at the time of award of any unpaid rent which
has been earned at the time of such termination; plus (ii) 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
Tenant proves could have been reasonably avoided; plus (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the time of award exceeds the amount of such rental loss that Tenant
proves could have been reasonably avoided; plus (iv) any other amount reasonably necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the
ordinary course of things would be likely to result therefrom, specifically including but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the Premises or any portion thereof for a new tenant, whether
for the same or a different use, and any special concessions made to obtain a new tenant; and (v) at Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable
law. 
  
 The term “rent” as used in this Section 19.2 shall
be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in Paragraphs 19.2.1(i) and (ii), above, the “worth at the time of
award” shall be computed by allowing interest at the rate set forth in Article 25 of this Lease, but in no case greater than the maximum amount of such interest permitted by law. As used in Paragraph 19.2.1(iii) above, the
“worth at the time of award” shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 
  
 19.2.2 Landlord shall have the remedy described in
California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee’s breach and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations).
Accordingly, if Landlord does not elect to terminate this Lease on account of any default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to
recover all rent as it becomes due. 
  
 19.3 Sublessees of
Tenant. Whether or not Landlord elects to terminate this Lease on account of any default by Tenant, as set forth in this Article 19, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other
consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such subleases, licenses, concessions or arrangements. In the event of
Landlord’s election to succeed to Tenant’s interest in any such subleases, licenses, concessions or arrangements, Tenant shall, as of the date of notice by Landlord of such election, have no further right to or interest in the rent or
other consideration receivable thereunder. 
  
 19.4 Waiver
of Default. No waiver by Landlord or Tenant of any violation or breach of any of the terms, provisions and covenants herein contained shall be deemed or construed to constitute a waiver of any other or later violation or breach of the same
or any other of the terms, provisions, and covenants herein contained. Forbearance by Landlord in enforcement of one or more of the remedies herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such
default. The acceptance of any Rent hereunder by Landlord following the occurrence of any default, whether or not known to Landlord, shall not be deemed a waiver of any such default, except only a default in the payment of the Rent so accepted.

  
 20. FORCE MAJEURE. Any prevention, delay or stoppage due
to strikes, lockouts, labor disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, fire or other casualty, and other causes beyond the reasonable control
of the party obligated to perform, except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant pursuant to this Lease (collectively, the “Force Majeure”), notwithstanding anything to the
contrary contained in this Lease, shall excuse the performance of such party for a period equal to any such prevention, delay or stoppage and, therefore, if this Lease specifies a time period for performance of an obligation of either party, that
time period shall be extended by the period of any delay in such party’s performance caused by a Force Majeure. 
  
 21. SECURITY DEPOSIT; LETTER OF CREDIT. 
  
 21.1 Security Deposit Concurrent with Tenant’s execution of this Lease, Tenant shall deposit with Landlord a security deposit (the
“Security Deposit”) in the amount set forth in Section 11 of the Summary. The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants, and conditions of
this Lease to be kept and performed by Tenant during the Lease Term. If Tenant defaults with respect to any provisions of this Lease, including, but not limited to, the provisions relating to the payment of Rent, Landlord may, but shall not be
required to, use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or for the payment of any amount that Landlord may spend or become obligated to spend by reason of Tenant’s
default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, Tenant shall, within five (5) days after written demand
therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a default under this Lease. If Tenant shall fully and faithfully perform every provision
of this Lease to be performed by it, the Security Deposit, or any balance thereof, shall be returned to Tenant, or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, within thirty (30) days following the
expiration of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit. 
  
 21.2 Letter of Credit. In addition to the Security Deposit (if any), Tenant shall deliver to Landlord concurrently with Tenant’s
execution of this Lease, an unconditional, clean, irrevocable letter of credit (the “L-C”), with an expiration date not earlier than twelve (12) months after the date of issuance, in the initial amount of Two Million Six
Hundred Twenty-Two Thousand Two Hundred Ten and 20/100 Dollars ($2,622,210.20) (the “Original L-C Amount”), which L-C shall be issued by a money-center bank (a bank which accepts deposits, maintains accounts, has an Orange County
office which will negotiate a letter of credit, and whose deposits are insured by the FDIC) reasonably acceptable to Landlord, and which L-C shall be in a form and content as set forth in Exhibit G, attached hereto. Tenant shall pay all
expenses, points and/or fees incurred by Tenant in obtaining the L-C. As provided in Sections 1.3.6 and 1.4.5 above, the Original L-C Amount shall be increased and a replacement L-C or an additional L-C shall be delivered to Landlord
concurrently with the addition of each addition of Available Expansion Space and Existing Building First Offer Space, subject to adjustment as provided below. The Original L-C Amount, as increased pursuant to Section 1.3.6 and/or
Section 1.4.5, is hereinafter referred to as the “L-C Amount.” During the period commencing upon the first day of the second (2nd) Lease Year (i.e., the first day of the thirteenth [13th] month of the Lease Term) and
continuing until expiration of the fifth (5th) Lease Year (the “Reduced L-C Period”), Tenant may reduce the then-applicable L-C Amount by a schedule attached to the L-C or deliver a new L-C to Landlord meeting the requirements
specified in this Section 21.2 below; provided, however, that during the Reduced L-C Period, the required amount of the L-C shall not fall below the “Reduced L-C Amount,” as that term is defined below. The L-C Amount may be
reduced during Lease Years two (2) through five (5) to a lower amount (“Reduced L-C Amount”) as follows: (i) effective as of the first day of the second Lease Year, the Reduced L-C Amount shall be eighty percent
(80%) of the then-applicable L-C Amount (i.e., the sum of the Original L-C Amount plus any prior increases thereto pursuant to Sections 1.3.6 and/or 1.4.5) existing at the commencement of the Reduced 

  

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L-C Period; (ii) effective as of the first day of the third Lease Year, the Reduced L-C Amount shall be sixty percent (60%) of the Original L-C
Amount plus sixty percent (60%) of that portion of the then-existing L-C Amount added pursuant to Sections 1.3.6 and/or 1.4.5 as of the commencement of the third Lease Year; (iii) effective as of the first day of the fourth
Lease Year, the Reduced L-C Amount shall be forty percent (40%) of the Original L-C Amount plus forty percent (40%) of that portion of the then-applicable L-C Amount added pursuant to Sections 1.3.6 and/or 1.4.5 as of the
commencement of the fourth Lease Year; (iv) effective as of the first day of the fifth Lease Year, the Reduced L-C Amount shall be twenty percent (20%) of the Original L-C Amount plus twenty percent (20%) of that portion of the
then-applicable L-C Amount added pursuant to Section 1.3.6 and/or 1.4.5 as of the commencement of the fifth Lease Year; and (v) effective as of the last day of the fifth (5th) Lease Year, the Reduce L-C Amount shall be
reduced to zero and the L-C will terminate. 
  
 21.3
Application of the L-C. The L-C shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the initial Lease Term.
The L-C shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant without the prior written consent of Landlord. If Tenant defaults with respect to any provisions of this Lease, including, but not limited to, the provisions
relating to the payment of Rent, or if Tenant fails to renew the L-C at least thirty (30) days before its expiration, Landlord may, but shall not be required to, draw upon all or any portion of the L-C for payment of any Rent or any other sum
in default, or for the payment of any amount that Landlord may reasonably spend or may become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of
Tenant’s default, or if Tenant fails to renew the L-C at least thirty (30) days before its expiration. The use, application or retention of the L-C, or any portion thereof, by Landlord shall not (a) prevent Landlord from exercising
any other right or remedy provided by this Lease or by law, it being intended that Landlord shall not first be required to proceed against the L-C, nor (b) operate as a limitation on any recovery to which Landlord may otherwise be entitled. Any
amount of the L-C which is drawn upon by Landlord, but is not used or applied by Landlord, shall be held by Landlord and deemed a security deposit (the “L-C Security Deposit”) and shall be held and treated in accordance with
Section 21.1. If any portion of the L-C is drawn upon, Tenant shall, within five (5) days after written demand therefor, either (i) deposit cash with Landlord (which cash shall be applied by Landlord to the L-C Security Deposit) in an
amount sufficient to cause the sum of the L-C Security Deposit and the amount of the remaining L-C to be equivalent to the amount of the L-C then required under this Lease or (ii) reinstate the L-C to the amount then required under this Lease,
and if any portion of the L-C Security Deposit is used or applied, Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord (which cash shall be applied by Landlord to the L-C Security Deposit) in an amount
sufficient to restore the L-C Security Deposit to the amount then required under this Lease, and Tenant’s failure to do so shall be a default under this Lease. Tenant acknowledges that Landlord has the right to transfer or mortgage its interest
in the Project and the Building and in this Lease and Tenant agrees that in the event of any such transfer or mortgage, Landlord shall have the right to transfer or assign the L-C Security Deposit and/or the L-C to the transferee or mortgagee, and
in the event of such transfer, Tenant shall look solely to such transferee or mortgagee for the return of the L-C Security Deposit and/or the L-C. If Tenant has not been in default under this Lease, the L-C shall be returned to Tenant
(a) following the completion of an initial public offering of Tenant’s stock to the general public pursuant to an offering made as a registered offering approved by the U.S. Securities Exchange Commission or (b) following the
acquisition of Tenant by a Permitted Transferee or the merger of Tenant into a Permitted Transferee and the assignment to and assumption by such Permitted Assignee of all of Tenant’s rights, duties and obligations under this Lease, provided
that (i) after any such offering, sale or merger, as the case may be, the Net Worth (as defined in Section 14.6) of Tenant or the applicable Permitted Assignee, as the case may be, shall be equal to or greater than Eighty-Two
Million Dollars ($82,000,000.00), and (ii) Tenant (or the applicable Permitted Transferee, as the case may be) has demonstrated to Landlord that it has met the Net Worth requirement for twelve (12) consecutive months, including any portion
of such twelve (12) month period that may have occurred prior to the completion of the applicable public offering, sale or merger, as the case may be. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by
it, the L-C Security Deposit and/or the L-C, or any balance thereof, shall be returned to Tenant within thirty (30) days following the expiration of the Lease Term (if it has not previously been delivered to Tenant in accordance with this
Section 21.3). 
  
 21.4 Replacement of
L-C. If Landlord has not received written notice from the issuing bank that the L-C has been renewed, then Landlord shall have the right, at its sole option, to draw upon and present the then existing L-C for the entire amount available
thereunder. Should the L-C then in effect be revoked or should the creditworthiness of the issuer of the L-C then in effect become impaired (in Landlord’s reasonable judgment), then Tenant shall deliver a replacement L-C in the form and
substance required hereunder. 
  

	22.	INTENTIONALLY OMITTED 

  

	23.	SIGNS 

  
 23.1 In General. Subject to the terms of this Section 23, Tenant shall be entitled, at its sole cost and expense, to install the
following signage: 
  
 (i) Two (2) signs identifying Tenant
located at the top of the Building. Tenant acknowledges and agrees that Landlord is not conferring upon Tenant any exclusive right for signage in, on or around the Building or the Project; 
  
 (ii) One monument to be constructed by Landlord (the
“Monument”) in the Project along Enterprise Drive, the precise location of which shall be determined by Landlord. The Monument Sign shall be for Tenant’s exclusive use; 
  
 (iii) One (1) eyebrow sign located above the southerly entry of the
Building, the precise location of which shall be determined by Landlord; 
  
 (iv) One (1) strip identifying Tenant on the directory board in the main lobby of the Building; and 
  
 (v) Any signage that Tenant may desire on the interior of the Premises that is not visible from the exterior of the Premises or the exterior of the
Building. 
  
 23.2 Specifications. The graphics,
materials, color, design, lettering, lighting, size, illumination, specifications and exact location of the signs to which Tenant is entitled pursuant to Section 23.1 above (“Tenant Signage”) shall be subject to the prior
written approval of Landlord, which approval shall not be unreasonably withheld conditioned or delayed, and shall be consistent and compatible with the quality and nature of the Building and Project. Furthermore, (i) Tenant’s Signage shall
comply with all applicable governmental rules and regulations; (ii) Tenant’s rights to Tenant’s Signage shall be personal to the Original Tenant and may not be utilized by any assignee, sublessee or other transferee of Tenant’s
interest in this Lease or the Premises; and (iii) Tenant’s continuing right to Tenant’s Signage shall be contingent on Tenant’s actually occupying the entire Premises. Tenant shall be responsible for all costs incurred in
connection with the design, construction, installation, repair and maintenance and compliance with laws of Tenant’s Signage, except that in the event that the Monument shall not be for Tenant’s exclusive use, Landlord shall, at
Landlord’s cost, install, maintain, repair and cause the Monument to comply with laws and Tenant shall only be responsible for the installation, maintenance, 

  

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repair and compliance with laws of Tenant’s sign on the Monument. Upon the expiration or earlier termination of this Lease, Tenant shall, at its sole
cost and expense, remove Tenant’s Signage and repair any and all damage to the Building and the Project caused by such removal. 
  
 23.3 Prohibited Signage and Other Items. Any signs, notices, logos, pictures, names or advertisements which are installed and that have not
been individually approved by Landlord may be removed without notice by Landlord at the sole expense of Tenant. Except as expressly provided herein, Tenant may not install any signs on the exterior or roof of the Building, Project, or the common
areas of the Building or the Project. Any signs, window coverings, or blinds (even if the same are located behind the Landlord approved window coverings for the Building), or other items visible from the exterior of the Premises, Building or Project
are subject to the prior approval of Landlord, in its sole discretion. 
  
 24.
COMPLIANCE WITH LAW Tenant shall comply with any law, statute, ordinance or other governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated. At its sole cost and expense, Tenant shall
promptly comply with all such governmental measures, other than the making of structural changes or changes to the Building’s life safety system. Should any standard or regulation now or hereafter be imposed on Landlord or Tenant by a state,
federal or local governmental body charged with the establishment, regulation and enforcement of occupational, health or safety standards for employers, employees, landlords or tenants, then Tenant agrees, at its sole cost and expense, to comply
promptly with such standards or regulations. The judgment of any court of competent jurisdiction or the admission of Tenant in any judicial action, regardless of whether Landlord is a party thereto, that Tenant has violated any of said governmental
measures, shall be conclusive of that fact as between Landlord and Tenant. 
  
 25. LATE CHARGES If any installment of Rent or any other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) days after said amount is due, or if any check delivered to
Landlord by Tenant shall be returned for insufficient funds, then Tenant shall pay to Landlord a late charge equal to five percent (5%) of the amount due. In addition to the late charge, in the event any check is returned for insufficient
funds, Tenant shall pay to Landlord, as additional rent, the sum of $25.00. The late charge shall be deemed Additional Rent and the right to require it shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and
shall not be construed as liquidated damages or as limiting Landlord’s remedies in any manner. In addition to the late charge described above, any Rent or other amounts owing hereunder which are not paid when due shall thereafter bear interest
until paid at a rate per annum equal to the prime rate (as quoted in the Wall Street Journal upon the commencement of the default) plus three percent (3%), but in no event above the highest rate permitted by applicable law. In the event that more
than one (1) check of Tenant is returned for insufficient funds in any twelve (12) month period, Landlord shall have the right to require that any or all subsequent payments by Tenant to Landlord be in the form of cash, money order,
cashier’s or certified check drawn on an institution acceptable to Landlord, notwithstanding any prior practice of accepting payments in any different form. 
  

	26.	DEFAULT; PAYMENTS BY TENANT 

  
 26.1 Landlord’s Cure. All covenants and agreements to be kept or performed by Tenant under this Lease shall be performed by Tenant at
Tenant’s sole cost and expense and without any reduction of Rent. If Tenant shall fail to perform any of its obligations under this Lease, within a reasonable time after such performance is required by the terms of this Lease, Landlord may, but
shall not be obligated to, after reasonable prior notice to Tenant, make any such payment or perform any such act on Tenant’s part without waiving its right based upon any default of Tenant and without releasing Tenant from any obligations
hereunder. 
  
 26.2 Tenant’s Reimbursement.
Except as may be specifically provided to the contrary in this Lease, Tenant shall pay to Landlord, within fifteen (15) days after delivery by Landlord to Tenant of statements therefor: (i) sums equal to expenditures reasonably made and
obligations incurred by Landlord in connection with the remedying by Landlord of Tenant’s defaults pursuant to the provisions of Section 26.1; (ii) sums equal to all losses, costs, liabilities, damages and expenses referred to
in Article 10 of this Lease; and (iii) sums equal to all reasonable expenditures made and obligations incurred by Landlord in collecting or attempting to collect the Rent or in enforcing or attempting to enforce any rights of Landlord
under this Lease or pursuant to law, including, without limitation, all reasonable legal fees and other amounts so expended. Tenant’s obligations under this Section 26.2 shall survive the expiration or sooner termination of the
Lease Term. 
  
 27. ENTRY BY LANDLORD. In addition to the access
rights provided under Section 3.1 of the Work Letter, Landlord reserves the right at all reasonable times and upon no less than 24 hours notice (except in the event of an emergency, in which case reasonable notice shall be provided) to
the Tenant to enter the Premises to (i) inspect them; (ii) show the Premises to prospective purchasers, mortgagees or tenants (but only within the last eight (8) months of the Lease for prospective tenants), or to the ground or
underlying lessors; (iii) post notices of nonresponsibility; or (iv) alter, improve or repair the Premises or the Building if necessary to comply with current building codes or other applicable laws, or for structural alterations, repairs
or improvements to the Building, provided Landlord’s entry does not unreasonably interfere with Tenant’s use of the Premises. Notwithstanding anything to the contrary contained in this Article 27 or Section 3.1 of the
Work Letter, Landlord may enter the Premises at any time to (A) perform services required of Landlord; (B) take possession due to any breach of this Lease in the manner provided herein; and (C) perform any covenants of Tenant which
Tenant fails to perform. Any such entries shall be without the abatement of Rent and shall include the right to take such reasonable steps as required to accomplish the stated purposes. Tenant hereby waives any claims for damages or for any injuries
or inconvenience to or interference with Tenant’s business, lost profits, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. For each of the above purposes, Landlord shall at all times have a key
with which to unlock all the doors in the Premises. In an emergency, Landlord shall have the right to use any means that Landlord may deem proper to open the doors in and to the Premises. Any entry into the Premises in the manner hereinbefore
described shall not be deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an actual or constructive eviction of Tenant from any portion of the Premises. 
  
 28. TENANT PARKING Tenant shall be entitled to number of parking spaces set forth in Section 12 of the Summary to park in
the Building Parking Facility. Tenant shall pay to Landlord for automobile parking passes on a monthly basis the prevailing rate charged for parking passes at the location of such passes, provided that, during the initial Lease Term, the parking
passes for the unreserved and reserved spaces shall be free of charge (other than the 10 reserved, covered spaces described in Section 12 of the Summary, for which Tenant shall pay to Landlord on the first day of each month a monthly
parking charge equal to Fifty Dollars ($50.00) per space); during the Option Term (if any), Landlord may also charge Tenant for the unreserved and reserved parking passes. Notwithstanding the foregoing, so long as Landlord charges Tenant for any of
the 10 reserved covered parking spaces, Tenant shall be entitled to an offset against Base Rent during each month of the initial Lease Term only in the same amount charged by Landlord. Tenant’s continued right to use the parking passes is
conditioned upon Tenant abiding by all rules and regulations which are prescribed from time to time for the orderly operation and use of the Building Parking Facility and upon Tenant’s cooperation in seeing that Tenant’s employees and
visitors also comply with such rules and regulations. Without limiting the generality of the foregoing, Tenant acknowledges and agrees that under no circumstances will Tenant exceed the number of parking passes/spaces allotted to it under
Section 12 of the Summary at any time and that, notwithstanding Landlord’s review or approval of any space plan for the Premises that shows spaces or work areas for employees that exceed the number of parking passes/spaces allotted to
Tenant, Tenant shall be solely responsible for arranging carpooling or different shifts in work hours for its employees such that at no time will 

  

 -18- 

 
Tenant (and its employees and invitees) exceed the permitted number of parking passes/spaces. Landlord specifically reserves the right to change the size,
configuration, design, layout, location and all other aspects of the Building Parking Facility and Tenant acknowledges and agrees that Landlord may, without incurring any liability to Tenant and without any abatement of Rent under this Lease, from
time to time, close-off or restrict access to the Building Parking Facility, or relocate Tenant’s parking passes to other parking structures and/or surface parking areas within a reasonable distance of the Premises, for purposes of permitting
or facilitating any such construction, alteration or improvements with respect to the Building Parking Facility or to accommodate or facilitate renovation, alteration, construction or other modification of other improvements or structures located on
the Project. Landlord may delegate its responsibilities hereunder to a parking operator in which case such parking operator shall have all the rights of control attributed hereby to the Landlord and such owner. The parking rates charged by Landlord
for Tenant’s parking passes shall be exclusive of any parking tax or other charges imposed by governmental authorities in connection with the use of such parking, which taxes and/or charges shall be paid directly by Tenant or the parking users,
or, if directly imposed against Landlord, Tenant shall reimburse Landlord for all such taxes and/or charges concurrent with its payment of the parking rates described herein. In addition to the parking spaces described in Section 12 of
the Summary, Landlord shall post signs or shall otherwise mark the parking spaces in the surface parking lot immediately adjacent to the first floor lobby entrance to the Premises for use by “Buy.com” or its guests, except for four
(4) spaces that will be marked as handicapped spaces and four (4) spaces that will be marked as delivery or loading/unloading spaces. 
  
 29. MISCELLANEOUS PROVISIONS 
  
 29.1 Binding Effect. Each of the provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit
not only of Landlord and of Tenant, but also of their respective successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of Article 14 of this Lease. 
  
 29.2 No Air Rights. No rights to any view or to light or air
over any property, whether belonging to Landlord or any other person, are granted to Tenant by this Lease. If at any time any windows of the Premises are temporarily darkened or the light or view therefrom is obstructed by reason of any repairs,
improvements, maintenance or cleaning in or about the Project, the same shall be without liability to Landlord and without any reduction or diminution of Tenant’s obligations under this Lease. 
  
 29.3 Modification of Lease. Should any current or prospective
mortgagee or ground lessor for the Project require a modification or modifications of this Lease, which modification or modifications will not cause an increased cost or expense to Tenant or in any other way materially and adversely change the
rights and obligations of Tenant hereunder, then and in such event, Tenant agrees that this Lease may be so modified and agrees to execute whatever documents are required therefor and deliver the same to Landlord within ten (10) days following
the request therefor. 
  
 29.4 Transfer of Landlord’s
Interest. Tenant acknowledges that Landlord has the right to transfer all or any portion of its interest in the Project and Building and in this Lease, and Tenant agrees that in the event of any such transfer, Landlord shall automatically be
released from all liability under this Lease arising after the date of such transfer and Tenant agrees to look solely to such transferee for the performance of Landlord’s obligations hereunder after the date of transfer. The liability of any
transferee of Landlord shall be limited to the interest of such transferee in the Project and Building and such transferee shall be without personal liability under this Lease, and Tenant hereby expressly waives and releases such personal liability
on behalf of itself and all persons claiming by, through or under Tenant. Tenant further acknowledges that Landlord may assign its interest in this Lease to a mortgage lender as additional security and agrees that such an assignment shall not
release Landlord from its obligations hereunder and that Tenant shall continue to look to Landlord for the performance of its obligations hereunder. Notwithstanding the above, Landlord’s transfer shall in no way relieve Landlord from any
liability accruing prior to such transfer. 
  
 29.5
Prohibition Against Recording. Except as provided in Section 29.3 of this Lease or this Section 29.5, neither this Lease, nor any memorandum, affidavit or other writing with respect thereto, shall be recorded by
Tenant or by anyone acting through, under or on behalf of Tenant, and the recording thereof in violation of this provision shall make this Lease null and void at Landlord’s election. Notwithstanding the foregoing, on or before fifteen
(15) business days following a written request by either Landlord or Tenant, the parties agree to execute and record a short form memorandum of this Lease, in a recordable form reasonably acceptable to Landlord and Tenant. Within five
(5) business days following the expiration or earlier termination of this Lease, Tenant shall execute (and have properly notarized) and deliver to Landlord a Quitclaim Deed, in recordable form, quitclaiming, terminating and forever surrendering
any and all right, title or interests Tenant may have in or to the Premises. 
  
 29.6 Relationship of Parties. Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership,
joint venturer or any association between Landlord and Tenant, it being expressly understood and agreed that neither the method of computation of Rent nor any act of the parties hereto shall be deemed to create any relationship between Landlord and
Tenant other than the relationship of landlord and tenant. 
  
 29.7 Application of Payments. Landlord shall have the right to apply payments received from Tenant pursuant to this Lease, regardless of Tenant’s designation of such payments, to satisfy any obligations of Tenant
hereunder, in such order and amounts as Landlord, in its sole discretion, may elect. 
  
 29.8 Time of Essence. Time is of the essence of this Lease and each of its provisions, provided, however, that if a party’s performance (except for monetary payments) would fall on a Saturday,
Sunday or legal holiday, that party’s performance shall be extended to the next following business day. 
  
 29.9 Partial Invalidity. If any term, provision or condition contained in this Lease shall, to any extent, be invalid or unenforceable, the
remainder of this Lease, or the application of such term, provision or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term,
provision and condition of this Lease shall be valid and enforceable to the fullest extent possible permitted by law. 
  
 29.10 No Warranty. In executing and delivering this Lease, Tenant has not relied on any representation, including, but not limited to, any
representation whatsoever as to the amount of any item comprising Additional Rent or the amount of the Additional Rent in the aggregate or that Landlord is furnishing the same services to other tenants, at all, on the same level or on the same
basis, or any warranty or any statement of Landlord which is not set forth herein or in one or more of the exhibits attached hereto. 
  
 29.11 Entire Agreement. It is understood and acknowledged that there are no oral agreements between the parties hereto affecting this Lease
and this Lease supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements and understandings, if any, between the parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and
none thereof shall be used to interpret or construe this Lease. 
  

 -19- 

 29.12 Right to Lease. Landlord reserves the absolute right to effect such other tenancies
in the Project as Landlord in the exercise of its sole business judgment shall determine to best promote the interests of the Project. Tenant does not rely on the fact, nor does Landlord represent, that any specific tenant or type or number of
tenants shall, during the Lease Term, occupy any space in the Project. 
  
 29.13 Waiver of Redemption by Tenant. Tenant hereby waives for Tenant and for all those claiming under Tenant all right now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ,
Tenant’s right of occupancy of the Premises after any termination of this Lease. 
  
 29.14 Notices. All notices, demands, statements or communications (collectively, “Notices”) given or required to be given by either party to the other hereunder shall be in writing,
shall be sent by United States certified or registered mail, postage prepaid, return receipt requested, or delivered personally (i) to Tenant at the appropriate address set forth in Section 5 of the Summary, or to such other place
as Tenant may from time to time designate in a Notice to Landlord; or (ii) to Landlord at the addresses set forth in Section 3 of the Summary, or to such other firm or to such other place as Landlord may from time to time designate
in a Notice to Tenant. Any Notice will be deemed given forty-eight (48) hours after the date it is mailed as provided in this Section 29.14 or upon the date personal delivery is made. If Tenant is notified of the identity and
address of Landlord’s mortgagee or ground or underlying lessor, Tenant shall give to such mortgagee or ground or underlying lessor written notice of any default by Landlord under the terms of this Lease by registered or certified mail, and such
mortgagee or ground or underlying lessor shall be given a reasonable opportunity to cure such default prior to Tenant’s exercising any remedy available to Tenant. 
  
 29.15 Landlord Exculpation. It is expressly understood and agreed that notwithstanding anything in this Lease
to the contrary, and notwithstanding any applicable law to the contrary, the liability of Landlord and the Landlord Parties hereunder (including any successor landlord) and any recourse by Tenant against Landlord or the Landlord Parties shall be
limited solely and exclusively to an amount which is equal to the interest of Landlord in the Building and the legal parcel of land upon which the Building is located, and neither Landlord, nor any of the Landlord Parties shall have any personal
liability therefor, and Tenant hereby expressly waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. 
  
 29.16 Intentionally Omitted. 
  

29.17 Authority. If Tenant is a corporation or partnership, each individual executing this Lease on behalf of Tenant hereby represents
and warrants that Tenant is a duly formed and existing entity qualified to do business in the state in which the Building is located and that Tenant has full right and authority to execute and deliver this Lease and that each person signing on
behalf of Tenant is authorized to do so. 
  
 29.18
Attorneys’ Fees. If either party commences litigation against the other for the specific performance of this Lease, for damages for the breach hereof or otherwise for enforcement of any remedy hereunder, the parties hereto agree
to and hereby do waive any right to a trial by jury and, in the event of any such commencement of litigation, the prevailing party shall be entitled to recover from the other party such costs and reasonable attorneys’ fees as may have been
incurred, including any and all costs incurred in enforcing, perfecting and executing such judgment. 
  
 29.19 Governing Law. This Lease shall be construed and enforced in accordance with the laws of the State of California. 
  
 29.20 Submission of Lease. Submission of this instrument for
examination or signature by Tenant does not constitute a reservation of or an option for lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord and Tenant. 
  
 29.21 Brokers. Landlord and Tenant hereby warrant to each other
that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Lease, and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Lease, excepting
only the real estate brokers or agents specified in Section 13 of the Summary (the “Brokers”). Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims,
demands, losses, liabilities, lawsuits, judgments, and costs and expenses (including without limitation reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of the
indemnifying party’s dealings with any real estate broker or agent, other than the Brokers. 
  
 29.22 Independent Covenants. This Lease shall be construed as though the covenants herein between Landlord and Tenant are independent and
not dependent and Tenant hereby expressly waives the benefit of any statute to the contrary and agrees that if Landlord fails to perform its obligations set forth herein, Tenant shall not be entitled to make any repairs or perform any acts hereunder
at Landlord’s expense or to any setoff of the Rent or other amounts owing hereunder against Landlord. 
  
 29.23 Project Name and Signage. Landlord shall have the right at any time to change the name of the Project and to install, affix and
maintain any and all signs on the exterior and on the interior of the Project as Landlord may, in Landlord’s sole discretion, desire, provided that the installation of such signs do not materially interfere with the visibility of Tenant’s
exterior building signs or monument sign. Tenant shall not use the name of the Project or use pictures or illustrations of the Project in advertising or other publicity, without the prior written consent of Landlord. 
  
 29.24 Transportation Management. Tenant shall fully comply with
all present or future programs intended to manage parking, transportation or traffic in and around the Building, and in connection therewith, Tenant shall take responsible action for the transportation planning and management of all employees
located at the Premises by working directly with Landlord, any governmental transportation management organization or any other transportation-related committees or entities. 
  
 29.25 Hazardous Material. As used herein, the term “Hazardous Material” means any hazardous or toxic
substance, material or waste which is or becomes regulated by any local governmental authority, the state in which the Building is located or the United States Government. Tenant acknowledges that Landlord may incur costs (A) for complying with
laws, codes, regulations or ordinances relating to Hazardous Material, or (B) otherwise in connection with Hazardous Material. Tenant agrees that the costs incurred by Landlord with respect to, or in connection with, complying with laws, codes,
regulations or ordinances relating to Hazardous Material shall be an Operating Expense, unless the cost of such compliance, as between Landlord and Tenant, is made the responsibility of Tenant under this Lease. Landlord represents and warrants that,
to its “actual knowledge” (as defined below), it is unaware of any Hazardous Material in, on or under the Premises or the Building except for (i) any Hazardous Material that is incorporated into the Building as part of the base, shell
or core and is in compliance with all applicable laws and (ii) any Hazardous Material that is disclosed in the following reports: (1) Limited Phase I Environmental Site Assessment Report dated October 2, 1996; Tentative Tract 13435,
San Joaquin Corridor & Laguna Hills Drive; and (2) Letter dated October 17, 1997, regarding original Phase I Report dated October 2, 1996, recommending that no further investigation take place. For purposes of this
Section 29.25, the words 

  

 -20- 

 
“actual knowledge” means the present, actual knowledge of Todd Burnight and Russ Parker, as of the date of this Lease, without any duty of
investigation or inquiry other than the obtaining of the environmental report(s) referenced above. 
  
 29.26 Confidentiality. Tenant acknowledges that the content of this Lease and any related documents are confidential information. Tenant
shall keep such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other than Tenant’s financial, legal, and space planning consultants. 
  
 29.27 Landlord Renovations. It is specifically understood and
agreed that Landlord has no obligation and has made no promises to alter, remodel, improve, renovate, repair or decorate the Premises, Building, Project or any part thereof and that no representations respecting the condition of the Premises,
Building or Project have been made by Landlord to Tenant except as specifically set forth herein or in the Tenant Work Letter. However, Tenant acknowledges that Landlord is currently renovating or may during the Lease Term renovate, improve, alter,
or modify (collectively, the “Renovations”) the Building, Premises, and/or Project, including without limitation the Building Parking Facility, common areas, systems and equipment, roof, and structural portions of the same. In
connection with such Renovations, Landlord may, among other things, erect scaffolding or other necessary structures in the Building or Project, limit or eliminate access to portions of the Project, including portions of the common areas, or perform
work in the Building or Project, which work may create noise, dust or leave debris in the Building or Project. Tenant hereby agrees that such Renovations and Landlord’s actions in connection with such Renovations shall in no way constitute a
constructive eviction of Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant’s business arising from
the Renovations, nor shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant’s personal property or improvements resulting from the Renovations or
Landlord’s actions in connection with such Renovations, or for any inconvenience or annoyance occasioned by such Renovations or Landlord’s actions in connection with such Renovations. Notwithstanding the foregoing, in the event that Tenant
is prevented from using, and does not use, the Premises or any portion thereof, as a result of any Renovations performed by Landlord (such set of circumstances, as set forth above, to be known as an “Renovation Abatement Event”),
then Tenant shall give Landlord notice of such Renovation Abatement Event, and if such Renovation Abatement Event continues for five (5) consecutive business days after Landlord’s receipt of any such notice (the “Renovation
Eligibility Period”), then the Base Rent and Tenant’s Share of Direct Expenses shall be abated or reduced, as the case may be, after expiration of the Renovation Eligibility Period for such time that Tenant continues to be so prevented
from using, and does not use, the Premises or a portion thereof, in the proportion that the rentable area of the portion of the Premises that Tenant is prevented from using, and does not use, bears to the total rentable area of the Premises;
provided, however, in the event that Tenant is prevented from using, and does not use, a portion of the Premises for a period of time in excess of the Renovation Eligibility Period and the remaining portion of the Premises is not sufficient to allow
Tenant to effectively conduct its business therein, and if Tenant does not conduct its business from such remaining portion, then for such time after expiration of the Renovation Eligibility Period during which Tenant is so prevented from
effectively conducting its business therein, the Base Rent and Tenant’s Share of Direct Expenses for the entire Premises shall be abated for such time as Tenant continues to be so prevented from using, and does not use, the Premises. If,
however, Tenant reoccupies any portion of the Premises during such period, the Rent allocable to such reoccupied portion, based on the proportion that the rentable area of such reoccupied portion of the Premises bears to the total rentable area of
the Premises, shall be payable by Tenant from the date Tenant reoccupies such portion of the Premises. Such right to abate Base Rent and Tenant’s Share of Direct Expenses shall be Tenant’s sole and exclusive remedy at law or in equity for
an Renovation Abatement Event. Except as provided in this Section 29.27, nothing contained herein shall be interpreted to mean that Tenant is excused from paying Rent due hereunder. 
  
 29.28 Development of the Project. 
  
 29.28.1 Subdivision. Landlord reserves the right to further subdivide all or a portion of the
Project. Tenant agrees to execute and deliver, upon demand by Landlord and in the form requested by Landlord, any additional documents reasonably needed to conform this Lease to the circumstances resulting from such subdivision. 
  
 29.28.2 The Other Improvements. If portions of
the Project or property adjacent to the Project (collectively, the “Other Improvements”) are owned by an entity other than Landlord, Landlord, at its option, may enter into an agreement with the owner or owners of any or all of the
Other Improvements to provide (i) for reciprocal rights of access and/or use of the Project and the Other Improvements, (ii) for the common management, operation, maintenance, improvement and/or repair of all or any portion of the Project
and the Other Improvements, (iii) for the allocation of a portion of the Direct Expenses to the Other Improvements and the operating expenses and taxes for the Other Improvements to the Project, and (iv) for the use or improvement of the
Other Improvements and/or the Project in connection with the improvement, construction, and/or excavation of the Other Improvements and/or the Project. Nothing contained herein shall be deemed or construed to limit or otherwise affect
Landlord’s right to convey all or any portion of the Project or any other of Landlord’s rights described in this Lease. 
  
 29.28.3 Construction of Project and Other Improvements. Tenant acknowledges that portions of the Project and/or the Other
Improvements may be under construction following Tenant’s occupancy of the Premises, and that such construction may result in levels of noise, dust, obstruction of access, etc. which are in excess of that present in a fully constructed project.
Landlord agrees to use its commercially reasonable efforts in connection with such construction so as not to unreasonably interfere with Tenant’s use of the Premises. Tenant hereby waives any and all rent offsets or claims of constructive
eviction which may arise in connection with such construction. 
  
 29.29 No Discrimination. Tenant covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through Tenant, and this Lease is made and accepted upon and subject to the
following conditions: that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, sex, religion, marital status, ancestry or national origin in the leasing, subleasing,
transferring, use, or enjoyment of the Premises, nor shall Tenant itself, or any person claiming under or through Tenant, establish or permit such practice or practices of discrimination or segregation with reference to the selection, location,
number, use or occupancy, of tenants, lessees, sublessees, subtenants or vendees in the Premises. 
  
 29.30  Office and Communications Services. 
  
 29.30.1 The Provider. Landlord has advised Tenant that certain office and communications services may be offered to tenants
of the Building by a concessionaire under contract to Landlord (“Provider”). Tenant shall be permitted to contract with Provider for the provision of any or all of such services on such terms and conditions as Tenant and Provider
may agree. 
  
 29.30.2 Other Terms.
Tenant acknowledges and agrees that: (i) Landlord has made no warranty or representation to Tenant with respect to the availability of any such services, or the quality, reliability or suitability thereof; (ii) the Provider is not acting
as the agent or representative of Landlord in the provision of such services, and Landlord shall have no liability or responsibility for any failure or inadequacy of such services, or any equipment or facilities used in the furnishing thereof, or
any act or omission of Provider, or its agents, employees, representatives, officers or contractors; (iii) Landlord shall have no responsibility or liability for the installation, 

  

 -21- 

 
alteration, repair, maintenance, furnishing, operation, adjustment or removal of any such services, equipment or facilities; and (iv) any contract or
other agreement between Tenant and Provider shall be independent of this Lease, the obligations of Tenant hereunder, and the rights of Landlord hereunder, and, without limiting the foregoing, no default or failure of Provider with respect to any
such services, equipment or facilities, or under any contract or agreement relating thereto, shall have any effect on this Lease or give to Tenant any offset or defense to the full and timely performance of its obligations hereunder, or entitle
Tenant to any abatement of rent or additional rent or any other payment required to be made by Tenant hereunder, or constitute any accrual or constructive eviction of Tenant, or otherwise give rise to any other claim of any nature against Landlord.

  
 29.31 Child Care Facilities. Tenant acknowledges
that any child care facilities located in the Project (the “Child Care Facilities”) which are available to Tenant and Tenant’s employees are provided by a third party (the “Child Care Provider”) which is
leasing space in the Project, and not by Landlord. If Tenant or its employees choose to use the Child Care Facilities, Tenant acknowledges that Tenant and Tenant’s employees are not relying upon any investigation which Landlord may have
conducted concerning the Child Care Provider or any warranties or representation with respect thereto, it being the sole responsibility of Tenant and the individual user of the Child Care Facilities to conduct any and all investigations of the Child
Care Facilities prior to making use thereof. Accordingly, Landlord shall have no responsibility with respect to the quality or care provided by the Child Care Facilities, or for any acts or omissions of the Child Care Provider. Furthermore, Tenant,
for Tenant and for Tenant’s employees, hereby agrees that Landlord, its members and their respective partners, subpartners, officers, agents, servants, employees, and independent contractors shall not be liable for, and are hereby released from
any responsibility for any loss, cost, damage, expense or liability, either to person or property, arising from the use of the Child Care Facilities by Tenant or Tenant’s employees. Tenant hereby covenants that Tenant shall inform all of
Tenant’s employees of the provisions of this Section 29.31 prior to such employees’ use of the Child Care Facilities. 
  
 29.32 Intentionally Omitted 
  

 -22- 

  
 IN WITNESS WHEREOF, Landlord
and Tenant have caused this Lease to be executed the day and date first above written. 
  

					
	“Landlord”:
	
	 AEW \ PARKER II, LLC,
 a California limited
liability company

		
	By:	 	 Eastrich Aliso, LLC,
 a Delaware limited
liability company,
 Member - Manager

			
	 	 	By:	 	 
	 	 	 	 	James Flynn
	 	 	 	 	Authorized Signatory

  

			
	“Tenant”:
	
	 BUY.COM,
 a Delaware
corporation

		
	By:	 	 
		
	Its	 	 
		
	By:	 	 
		
	Its	 	 

  

 -23- 

  
 EXHIBIT A

  
 OUTLINE OF PREMISES 
  
 [TO BE PROVIDED] 
  

 EXHIBIT A - Page 1 

  
 EXHIBIT B

  
 TENANT WORK LETTER 
  
 This Tenant Work Letter shall set forth the terms and conditions relating to
the construction of the tenant improvements in the Premises. This Tenant Work Letter is essentially organized chronologically and addresses the issues of the construction of the Premises, in sequence, as such issues will arise during the actual
construction of the Premises. All references in this Tenant Work Letter to Articles or Sections of “this Lease” shall mean the relevant portion of Articles 1 through 29 of the Office Lease to which this Tenant Work Letter is
attached as Exhibit B and of which this Tenant Work Letter forms a part, and all references in this Tenant Work Letter to Sections of “this Tenant Work Letter” shall mean the relevant portion of Sections 1 through 6 of this
Tenant Work Letter. 
  
 SECTION 1 
  
 LANDLORD’S INITIAL CONSTRUCTION IN THE PREMISES 
  
 1.1 Base, Shell and Core of the Premises as Constructed by Landlord.
Landlord has constructed, or shall construct, at its sole cost and expense, the base, shell, and core as set forth on Schedule 1, attached hereto (the “Base, Shell, and Coret”) (i) of the Premises and (ii) of the
floor of the Building on which the Premises is located (collectively, the “Base, Shell, and Core”). The Base, Shell and Core shall consist of those portions of the Premises which were in existence prior to the construction of the
tenant improvements in the Premises for the prior tenant of the Premises. 
  
 1.2 Landlord Work. Landlord shall, at Tenant’s sole cost and expense, cause the construction or installation of the following items on the floor of the Building containing the Premises (collectively, the
“Landlord Work”). Tenant may not change or alter the Landlord Work. 
  
 1.2.1 Public Corridor (only as to that portion of the Premises, if any, which occupies only a portion of a floor, rather than an entire
floor, of the Building). The actual public corridor wall, the standard tenant entries and exits including doors, frames, hardware, and sidelight (if any), and standard tenant entry signage and exit lights (collectively, the “Public
Corridor”), which Public Corridor is adjacent to the Premises. 
  
 1.2.2 Demising Walls Between Tenants (only as to that portion of the Premises, if any, which occupies only a portion of a floor, rather than an entire floor, of the Building). One-half of the cost of the demising
partitions between tenants which shall include studs, acoustical insulation and dry wall ready for finish on tenant side only and any necessary penetrations, fire dampers and sound traps (collectively, the “Demising Walls”), which
Demising Walls are adjacent to the Premises. 
  
 1.2.3 Elevator Lobby (only as to that portion of the Premises, if any, which occupies only a portion of a floor, rather than an entire floor, of the Building) (the “Lobby”). 
  
 SECTION 2 
  
 TENANT IMPROVEMENTS 
  
 2.1 Tenant Improvement Allowance. Tenant shall be entitled to a one-time tenant improvement allowance (the “Tenant Improvement
Allowance”) in the amount of One Million Three Hundred Eighty Thousand One Hundred Fifteen Dollars ($1,380,115.00) (i.e., $27.50 per usable square foot of the Premises multiplied by 50,186 useable square feet) for the costs relating to the
initial design and construction of Tenant’s improvements which are permanently affixed to the Premises and as are finally described in the “Approved Working Drawings,” as that term is defined in Section 3.4 below (the
“Tenant Improvements”). Except as set forth in this Section 2.1 of this Tenant Work Letter, in no event shall Landlord be obligated to make disbursements pursuant to this Tenant Work Letter in a total amount which
exceeds the Tenant Improvement Allowance. All Tenant Improvements for which the Tenant Improvement Allowance has been made available shall be deemed Landlord’s property under the terms of the Lease. 
  
 2.2 Disbursement of the Tenant Improvement Allowance. Except as
otherwise set forth in this Tenant Work Letter, the Tenant Improvement Allowance shall be disbursed by Landlord (each of which disbursements shall be made pursuant to Landlord’s disbursement process) for costs related to the construction of the
Tenant Improvements and for the following items and costs (collectively, the “Tenant Improvement Allowance Items”): (i) payment of the fees of the “Architect” and the “Engineers,” as those terms are defined
in Section 3.1 of this Tenant Work Letter (provided that Tenant’s right to reimbursement from the Tenant Improvement Allowance for the Architect’s fees for preparing the “Final Space Plan,” as that term is
defined in Section 3.1 of this Tenant Work Letter, shall not exceed $0.12 per usable square foot of space within the Premises), and payment of the fees incurred by, and the cost of documents and materials supplied by, Landlord and
Landlord’s consultants in connection with the preparation and review of the “Construction Drawings,” as that term is defined in Section 3.1 of this Tenant Work Letter; (ii) the cost of any changes in the Base, Shell
and Core when such changes are required by the Construction Drawings; (iii) the cost of any changes to the Construction Drawings or Tenant Improvements required by all applicable building codes (the “Code”); (iv) the cost
of the Landlord’s Work; (v) the “Landlord Supervision Fee”, as that term is defined in Section 4.3.2 of this Tenant Work Letter; and (vi) a portion of the costs, as designated by Landlord, of the tenant demising
walls, and public corridor and Lobby walls and materials, if any, as designated by Landlord. 
  
 2.3 Standard Tenant Improvement Package. Landlord has established specifications (the “Specifications”) for the Building standard components to be used in the construction of the Tenant
Improvements in the Premises (collectively, the “Standard Improvement Package”), which Specifications are set forth on Schedule 2, attached hereto shall be supplied to Tenant by Landlord. The quality of Tenant Improvements
shall be equal to or of greater quality than the quality of the Specifications, provided that Landlord may, at Landlord’s option, require the Tenant Improvements to comply with certain Specifications. Landlord may make changes to the
Specifications for the Standard Improvement Package from time to time. 
  
 SECTION 3 
  
 CONSTRUCTION DRAWINGS

  
 3.1 Selection of Architect/Construction Drawings.
Tenant has retained H. Hendy & Associates Design (the “Architect”) as the architect/space planner to prepare the space plan for the Premises (“Final Space Plan”), which is attached hereto as
Schedule 3. Landlord shall retain the Architect to prepare the “Construction Drawings,” as that term is defined in this Section 3.1. Landlord shall also retain the engineering consultants (the
“Engineers”) to prepare all plans and engineering working drawings relating to the structural, mechanical, electrical, plumbing, HVAC, life safety, and sprinkler work of the Tenant Improvements. The plans and 

  

 EXHIBIT B - Page 1 

 
drawings to be prepared by Architect and the Engineers hereunder shall be known collectively as the “Construction Drawings.” Notwithstanding that
the Final Space Plan shows a private lobby on the first floor of the Building for private access by Tenant and its employees and invitees only, Tenant acknowledges and agrees that the County of Orange (“County”) or other
governmental agencies with jurisdiction over the Building may require, or it may otherwise be required by applicable law (including, without limitation, Title XXIV of the Uniform Building Code, as adopted by the County, and the Americans with
Disabilities Act of 1990, as amended) or Landlord may otherwise desire in its reasonable discretion, that such lobby be maintained as a common entrance to the Building for ingress and egress to and from the Building by the disabled or by other
pick-up, delivery or other service providers for other tenants of the Building (excluding, however, use by other tenants of the Building for purposes of moving furniture or other equipment in or out of the Building in connection with such
tenants’ moving into or out of the Building at the commencement or expiration of their lease term). If the County or such other governmental agencies require, or if Landlord otherwise determines it is required by applicable law or that Landlord
otherwise desires in its reasonable discretion, that the first floor lobby be maintained as a common entrance to the Building, Tenant agrees that the first floor lobby be maintained at all times during Tenant’s business hours for access to the
Building by the disabled or by other pickup, delivery or other service providers for other tenants of the Building. Further, if the County or such other governmental agencies require, or if Landlord otherwise determines it is required by applicable
law that a common area corridor be constructed such that the first floor lobby be maintained as a common entrance to the Building at all times (and not just during Tenant’s business hours), Tenant agrees that Landlord may make any changes to
the lobby area, both before the Lease Term and during the Lease Term, in order to comply with such requirements of the County, other governmental agencies or applicable law, as the case may be. All such changes shall be at Landlord’s cost and
expense. In the event Landlord constructs the common area corridor as part of the first floor lobby area, such common area corridor shall be deemed to be part of the “Common Area” of the Building upon the completion of such corridor, in
which case (a) Tenant’s Base Rent and Tenant’s Share of Direct Expenses shall be adjusted in accordance with the reduction in the rentable square feet of the Premises resulting from the conversion of such area into “Common
Area” (as determined in accordance with Section 1.2 of the Lease), and (b) the common area corridor shall then be available to all persons for access to and from the Building without any limitations. 
  
 3.2 Intentionally Omitted. 
  
 3.3 Final Working Drawings. Landlord, the Architect and the Engineers,
with Tenant’s assistance, shall complete the architectural and engineering drawings for the Premises, and the final architectural working drawings in a form which is complete to allow subcontractors to bid on the work and to obtain all
applicable permits (collectively, the “Final Working Drawings”) and shall submit the same to Tenant for Tenant’s approval. Tenant shall have five (5) business days to review and approve the same. Tenant’s failure to
review and approve the Final Working Drawings within such five (5) business day period shall constitute Tenant’s approval of the same. 
  
 3.4 Permits. The Final Working Drawings shall be approved (or deemed approved) by Tenant (the “Approved Working Drawings”)
prior to the commencement of the construction of the Tenant Improvements. Landlord shall immediately submit the Approved Working Drawings to the appropriate municipal authorities for all applicable building permits necessary to allow
“Contractor,” as that term is defined in Section 4.1, below, to commence and fully complete the construction of the Tenant Improvements (the “Permits”), and, in connection therewith, Tenant shall, if requested
by Landlord, coordinate with Landlord in order to assist Landlord in obtaining the Permits on or before the date set forth in Schedule 1. Landlord may make any and all changes, modifications or alterations in the Approved Working
Drawings that may be required by any governmental authority without the prior written consent of Tenant. 
  
 3.5 Time Deadlines. Tenant shall use its good faith, efforts and all due diligence to cooperate with the Architect, the Engineers, and Landlord to
complete all phases of the Construction Drawings and the permitting process, and with Contractor for approval of the “Cost Proposal,” as that term is defined in Section 4.2 of this Tenant Work Letter, as soon as possible after
the execution of the Lease, and, in that regard, shall meet with Landlord on a scheduled basis to be determined by Landlord, to discuss the same. The applicable dates for approval of items, plans and drawings as described in this
Section 3, Section 4, below, and in this Tenant Work Letter are set forth and further elaborated upon in Schedule 4 (the “Time Deadlines”), attached hereto. Tenant agrees to comply with the Time
Deadlines. 
  
 SECTION 4 
  
 CONSTRUCTION OF THE TENANT IMPROVEMENTS 
  
 4.1 Contractor. Landlord shall competitively bid the Tenant
Improvements Work to the following general contractors (the “Pre-Approved Contractors”): Johnstone & Associates; Howard CDM; Summit Contractors (Laguna Beach); and Howard Building Corp. Landlord shall select the contractor
to construct the Tenant Improvements. Tenant’s consent to such selection shall not be required if Landlord selects as its general contractor any one of the Pre-Approved Contractors. If Landlord desires to select another general
contractor, Landlord shall obtain Tenant’s consent thereto (not to be unreasonably withheld, conditioned or delayed). The contractor selected by Landlord is referred to herein as the “Contractor.” 
  
 4.2 Cost Proposal. After the Approved Working Drawings are signed by
Landlord and Tenant, Landlord shall provide Tenant with a cost proposal in accordance with the Approved Working Drawings, which cost proposal shall include, as nearly as possible, the cost of all Tenant Improvement Allowance Items to be incurred by
Tenant in connection with the design and construction of the Tenant Improvements (the “Cost Proposal”). Tenant shall approve and deliver the signed Cost Proposal to Landlord within five (5) business days of the receipt of the
same, and upon receipt of the same by Landlord, Landlord shall be released by Tenant to purchase the items set forth in the Cost Proposal and to commence the construction relating to such items. The date by which Tenant must approve and deliver the
Cost Proposal to Landlord shall be known hereafter as the “Cost Proposal Delivery Date”. 
  
 4.3 Construction of Tenant Improvements by Contractor under the Supervision of Landlord. 
  
 4.3.1 Over-Allowance Amount. On the Cost Proposal
Delivery Date, Tenant shall deliver to Landlord cash in an amount (the “Over-Allowance Amount”) equal to the difference between (i) the amount of the Cost Proposal and (ii) the amount of the Tenant Improvement Allowance.
The Over-Allowance Amount shall be disbursed by Landlord prior to the disbursement of any then remaining portion of the Tenant Improvement Allowance, and such disbursement shall be pursuant to the same procedure as the Tenant Improvement Allowance.
In the event that, after the Cost Proposal Delivery Date, any revisions, changes, or substitutions shall be made to the Construction Drawings or the Tenant Improvements, any additional costs which arise in connection with such revisions, changes or
substitutions or any other additional costs shall be paid by Tenant to Landlord immediately upon Landlord’s request as an addition to the Over-Allowance Amount. 
  
 4.3.2 Landlord’s Retention of Contractor. Landlord shall independently retain Contractor, on
behalf of Tenant, to construct the Tenant Improvements in accordance with the Approved Working Drawings and the Cost Proposal and Landlord shall supervise the construction by Contractor, and Tenant shall pay a construction supervision and management
fee (the “Landlord  

  

 EXHIBIT B - Page 2 

 
Supervision Feet”) to Landlord in an amount equal to the product of (i) five percent (5%) multiplied by (ii) the amount in the
Cost Proposal. 
  
 4.3.3 Contractor’s
Warranties and Guaranties. Landlord hereby assigns to Tenant all warranties and guaranties by Contractor relating to the Tenant Improvements, and Tenant hereby waives all claims against Landlord relating to, or arising out of the construction
of, the Tenant Improvements. 
  
 4.3.4
Tenant’s Covenants. Within ten (10) days after completion of construction of the Tenant Improvements, Tenant shall cause Contractor and Architect to cause a Notice of Completion to be recorded in the office of the County Recorder of
the county in which the Building is located in accordance with Section 3093 of the Civil Code of the State of California or any successor statute and furnish a copy thereof to Landlord upon recordation, failing which, Landlord may itself
execute and file the same on behalf of Tenant as Tenant’s agent for such purpose. In addition, immediately after the Substantial Completion of the Premises, Tenant shall have prepared and delivered to the Building a copy of the “as
built” plans and specifications (including all working drawings) for the Tenant Improvements. 
  
 4.3.5 Unused Allowance Amount. If the Tenant Improvement Allowance is not expended in full, any unused amounts (“Allowance
Savings”) shall be credited against Tenant’s Base Rent first becoming due under the Lease, provided that under no circumstances shall the Allowance Savings exceed the amount of Base Rent that is due in the first month of the Lease
Term. 
  
 SECTION 5 
  
 COMPLETION OF THE TENANT IMPROVEMENTS; 
 LEASE COMMENCEMENT DATE 
  
 5.1 Ready for Occupancy. The Premises shall be deemed “Ready for Occupancy” upon the Substantial Completion of the Premises. For purposes
of this Lease, “Substantial Completion” of the Premises shall occur upon (i) the substantial completion of construction of the Tenant Improvements in the Premises pursuant to the Approved Working Drawings, with the exception of any
punch list items and any tenant fixtures, work-stations, built-in furniture, or equipment to be installed by Tenant or under the supervision of Contractor that are not described as being part of the Approved Working Drawings, and (ii) the
issuance of a certificate of occupancy (temporary or permanent), or the functional equivalent thereof that allows for the legal occupancy of the Premises such as a sign off on the building inspection cards, by the applicable governmental
authorities. 
  
 5.2 Delay of the Substantial Completion of the
Premises. Except as provided in this Section 5.2, the Lease Commencement Date shall occur as set forth in the Lease and Section 5.1, above. If there shall be a delay or there are delays in the Substantial Completion of
the Premises or in the occurrence of any of the other conditions precedent to the Lease Commencement Date, as set forth in the Lease, as a direct, partial, or total result of: 
  
 5.2.1 Tenant’s unreasonable failure to comply with the Time Deadlines; 
  
 5.2.2 Tenant’s unreasonable failure to timely approve
any matter requiring Tenant’s approval; 
  
 5.2.3 A material breach by Tenant of the terms of this Tenant Work Letter or the Lease; 
  
 5.2.4 Changes in any of the Construction Drawings after disapproval of the same by Landlord or because the same do not comply with Code or
other applicable laws; 
  
 5.2.5 Tenant’s
unreasonable request for changes in the Approved Working Drawings; 
  
 5.2.6 Tenant’s unreasonable requirement for materials, components, finishes or improvements which are not available in a commercially reasonable time given the anticipated date of Substantial Completion of the
Premises, as set forth in the Lease, or which are different from, or not included in, the Standard Improvement Package; 
  
 5.2.7 Changes to the Base, Shell and Core required by the Approved Working Drawings; or 
  
 5.2.8 Any other acts or omissions of Tenant, or its agents,
or employees; 
  
 then, notwithstanding anything
to the contrary set forth in the Lease or this Tenant Work Letter and regardless of the actual date of the Substantial Completion of the Premises, the Lease Commencement Date shall be deemed to be the date the Lease Commencement Date would have
occurred if no Tenant delay or delays, as set forth above, had occurred. 
  
 SECTION 6 
  
 MISCELLANEOUS 
  
 6.1 Tenant’s Entry Into the Premises Prior to Substantial
Completion. Provided that Tenant and its agents do not interfere with Contractor’s work in the Building and the Premises, Contractor shall allow Tenant access to the Premises approximately thirty (30) days prior to the Substantial
Completion of the Premises for the purpose of Tenant installing overstandard equipment or fixtures (including Tenant’s data and telephone equipment) in the Premises. Prior to Tenant’s entry into the Premises as permitted by the terms of
this Section 6.1, Tenant shall submit a schedule to Landlord and Contractor, for their approval, which schedule shall detail the timing and purpose of Tenant’s entry. Tenant shall hold Landlord harmless from and indemnify, protect
and defend Landlord against any loss or damage to the Building or Premises and against injury to any persons caused by Tenant’s actions pursuant to this Section 6.1. Notwithstanding the foregoing, Tenant shall not be deemed to be
commencing business operations from the Premises, as contemplated in Section 6 of the Summary, when entering the Premises solely for the purposes described in this Section 6.1. 
  
 6.2 Freight Elevators. Landlord shall, consistent with its obligations
to other tenants of the Building, make the freight elevator reasonably available to Tenant in connection with initial decorating, furnishing and moving into the Premises. 
  
 6.3 Tenant’s Representative. Tenant has designated Alan Barbieri and Tiffany Armstrong as its representatives
with respect to the matters set forth in this Tenant Work Letter, who, until further notice to Landlord, shall each, acting alone or together, have full authority and responsibility to act on behalf of the Tenant as required in this Tenant Work
Letter. 
  

 EXHIBIT B - Page 3 

 6.4 Landlord’s Representative. Landlord has designated Michael Pace as its sole
representatives with respect to the matters set forth in this Tenant Work Letter, who, until further notice to Tenant, shall have full authority and responsibility to act on behalf of the Landlord as required in this Tenant Work Letter. 

 
 6.5 Time of the Essence in This Tenant Work Letter. Unless
otherwise indicated, all references herein to a “number of days” shall mean and refer to calendar days. In all instances where Tenant is required to approve or deliver an item, if no written notice of approval is given or the item is not
delivered within the stated time period, at Landlord’s sole option, at the end of such period the item shall automatically be deemed approved or delivered by Tenant and the next succeeding time period shall commence. 
  
 6.6 Tenant’s Lease Default. Notwithstanding any provision to the
contrary contained in this Lease, if an event of default as described in the Lease, or a default by Tenant under this Tenant Work Letter, has occurred at any time on or before the Substantial Completion of the Premises, then (i) in addition to
all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to withhold payment of all or any portion of the Tenant Improvement Allowance and/or Landlord may cause Contractor to cease the construction of
the Premises (in which case, Tenant shall be responsible for any delay in the Substantial Completion of the Premises caused by such work stoppage as set forth in Section 5 of this Tenant Work Letter), and (ii) all other obligations
of Landlord under the terms of this Tenant Work Letter shall be forgiven until such time as such default is cured pursuant to the terms of the Lease. 
  

 EXHIBIT B - Page 4 

  
 SCHEDULE 1 TO EXHIBIT B

  
 BASE, SHELL AND CORE DESCRIPTION

  

					
	Geometry	  	1.	  	4 Story Type III 1-hour building with 28,000 square feet floor plates.
			
	Structure	  	2.	  	Floor to floor height of 13’6” typical, 14’6” first floor w/10’0” ceiling height, 13’6” top floor (allow for roof drains).
			
	 	  	3.	  	Spread footings with grade beams at moment frame perimeter.
			
	 	  	4.	  	Structural steel columns and beams with seismic moment frame at perimeter of the building.
			
	Floors	  	5.	  	Slab on grade at the ground floor with lightweight concrete on all elevated floors.
			
	Exterior	  	6.	  	Exterior painted E.I.F.S. spandrels and columns with green tinted glass and aluminum window wall with roof parapet and a mechanical equipment screen.
			
	Interior Finish	  	7.	  	Ground floor public lobby with stone floors and carpet insets.
			
	 	  	8.	  	Finished men’s and women’s restrooms on all floors with ceramic tile floors and walls.
			
	Vertical Movement	  	9.	  	Two (2) traction elevators with standard cab finish.
			
	Mechanical	  	10.	  	HVAC-VAV systems with hot water terminal reheat, shell building system includes duct risers and loops. HHW loops and valves and control piping (pneumatic) or wiring (electrical) to each
floor.
			
	 	  	11.	  	HVAC distribution, ceiling grid and lights in core areas only.
			
	Fire	  	12.	  	Fire Sprinklers distributed with temporary heads and shields.
			
	Electrical	  	13.	  	Electrical panels 120/208 and 277/480 at two locations on each floor.

  

 SCHEDULE 1 TO EXHIBIT B - Page 1 

  
 SCHEDULE 2 TO EXHIBIT B

  
 STANDARD IMPROVEMENT PACKAGE 

 
 (SUMMIT STAGE TWO BUILDING “C”) 
  
 TENANT AREA 
  

	1.	Interior Partition Walls 

  

	 	a.	2-1/2” 25 – gauge metal studs, 24” on center with seismic bracing unless noted otherwise. 

  

	 	b.	5/8” Type “x” gypsum board, one layer each side. 

  

	 	c.	Partition taped smooth and sanded to receive paint or wallcovering with acoustical seal at base of wall to floor. 

  

	 	d.	2-1/2” unfaced sound batt insulation in wall cavity. 

  

	 	e.	Ceiling insulation to occur 4’-0” each side of partition with 3-1/2” R-11 unfaced sound batt insulation. 

  

	 	f.	“L” metal trim at termination of partition at ceiling. 

  

	 	g.	Stagger and acoustical caulk around electrical outlet and other junction boxes. Sound caulk around conduit and other through-the-wall penetrations. 

  

	 	h.	Secure top channel with metal screws to ceiling grid. Secure bottom channel with  1/4” shotpins at 4’-0” O.C. and 6” from corner. 

  

	 	i.	Lateral bracing at top of wall at 8’-0” O.C. The brace is to be placed at 45 degrees to the horizontal plane ceiling and secure to top of wall and structure above.

  

	2.	Demising Partition Walls 

  

	 	a.	2-1/2, 25 gauge metal studs 24” on center full height to structure above. 

  

	 	b.	5/8” Type “x” gypsum board, one layer each side with sound batts at wall cavity. One hour rated assembly. 

  

	 	c.	Exposed gypsum board taped smooth and sanded to receive paint and/or wallcovering. 

  

	 	d.	Sound boots at all HVAC penetrations. 

  

	 	e.	Straight-line termination at building columns and sound sealed gasket closure at window mullion termination. 

  

	 	f.	Stagger and fire caulk around electrical outlets and other junction boxes. Fire caulk around conduit and other through-the-wall-penetrations. 

  
 Perimeter Drywall and Columns 
  

	 	g.	Perimeter of exterior wall and interior structural columns exposed gypsum board below ceiling line taped smooth and sanded to receive paint or wallcovering.

  

	3.	Interior Doors 

  

	 	a.	All doors shall be 3’-0” x 8’-0” x 1-3/4”. Doors to be pre-finished clear solid-core flush premium grade quarter-sliced maple with matching hardwood edges.
Fire rated doors to be 20-minute fire rated assemblies. 

  

	 	b.	Door frames to be factory painted Western Integrated aluminum door frame in building standard colors. 20-minute fire rated frames at rated door assemblies. 

 

	 	c.	Schlage A/L series lever latchset/lockset with satin chrome finish. 

  

	 	d.	Butt hinges, 2 pair, Hager, ball bearing brushed stainless finish. 

  

	 	e.	Norton #8501 parallel arm door closer at rated door assemblies. 

  

	 	f.	Floor mounted doorstop with brushed stainless finish. 

  

	 	g.	Fire/smoke seals at rated door assemblies. 

  

	4.	Tenant Entry Door(s) 

  

	 	a.	All doors shall be 3’-0” x 8’-10” x 1-3/4”. Doors to be pre-finished clear solid-core flush premium grade quarter-sliced maple with matching hardwood edges.
Fire rated doors to be 20-minute fire rated at fire assemblies. 

  

	 	b.	Door frames to be factory painted Western Integrated aluminum door frames in building standard colors. 20-minute fire rated assembly at rated door assemblies.

  

	 	c.	Lever hardware to be building standard Schlage L-17 mortise lockset with satin chrome finish. 

  

 SCHEDULE 2 TO EXHIBIT B - Page 1 

	 	d.	Butt hinges, 2 pair, Hager, ball bearing brushed stainless finish. 

  

	 	e.	Norton #8501 parallel arm door closer at rated door assemblies 

  

	 	f.	Floor mounted doorstop with brushed stainless finish. 

  

	 	g.	Fire/smoke seals gasket at rated door assemblies. 

  

	 	h.	Pairs of doors to have coordinator and automatic flush bolts and astregal. 

  

	5.	Tenant Area Light Fixtures 

  

	 	a.	2’ x 4” Ultraline (slot grid) housing type throughout Tenant premises. 

  

	 	b.	35-watt T-8 fluorescent tubes, 3 lamps per fixture, 3500 Kelvin. 

  

	 	c.	Lithonia “Paralux”, or equal, 3” deep cell parabolic diffuser, return air slots, 277V, solid state ballasts. 

  

	 	d.	Heat exhaust slots, with return air slots. 

  

	 	e.	Earthquake clips and wire. 

  

	6.	Core Light Fixture 

  

	 	a.	Lithonia AFV-B series recessed fluorescent downlights, or equal, with clear specular alzack reflector. 

  

	 	b.	26/32/42 35K Triple Tube Lamp. 

  

	7.	Acoustic Ceiling 

  

	 	a.	Chicago metallic “Fineline” white steel grid, intermediate duty with compression struts and seismic wiring throughout tenant premises 

  

	 	b.	Partition attachment clips. 

  

	 	c.	USG “Millennia” tile, 2’ x 2’ x  3/4”, Fineline beveled edge; painted back. 

  

	 	d.	Ground floor ceiling height to be approximately 10’, upper floor ceiling height to be 9’-0” or as noted otherwise on the building plans. 

  

	8.	Fire Sprinklers 

  

	 	a.	Drops and heads from existing distribution. 

  

	 	b.	Adjustable heads. 

  

	 	c.	Semi-recessed heads with white enamel trim, located in center of ceiling tile. 

  

	9.	Paint 

  

	 	a.	Two coats of flat latex paint over primer. 

  

	 	b.	Building Standard colors. 

  

	10.	Flooring and Base 

  

	 	a.	Designweave “Tempest Classic”, 32 oz. in building standard colors. 

  

	 	b.	4” rubber straight base, Burke or equal. 

  

	 	c.	Vinyl flooring 12” x 12” standard VCT Armstrong “Excelon”. 

  

	11.	Window Covering 

  

	 	a.	Perforated vinyl vertical blind. Draw and tilt function, with 3” perforated P.V.C. vanes. 

  

	12.	Electrical Wall Outlet 

  

	 	a.	Self-grounding specification grade or equal, duplex receptacle, white, vertical orientation at 18” above finish floor to centerline of outlet. 

  

	13.	Light Control System (for use in private offices and support rooms and conference rooms exclusive of open areas), Suites in excess of 5,000 useable square feet only.

  

	 	a.	Wall or ceiling mount. Novitas, “watt stopper” motion sensor, or equal, white. 

  

	 	b.	Plenum rated wire, control relay and transformer. 

  

 SCHEDULE 2 TO EXHIBIT B - Page 2 

	14.	Light Control Devices (for use in reception areas, general office and other areas not listed above) 

  

	 	a.	All lighting circuits run to relays in existing lighting control panel. 

  

	 	b.	Momentary contact switch to activate lighting control system relays. 

  

	 	c.	Bi-level switching to meet Title 24 requirements. 

  

	 	d.	Vertical orientation, height 42” A.F.F. to center line of switch. 

  

	15.	Telephone/Data Wall Outlet 

  

	 	a.	4-11/16” x 2-1/8” deep wall box, vertically-oriented at 18” above finish floor to centerline of outlet. 

  

	16.	Tenant Lighting 

  

	 	a.	Switching Capabilities: Motion sensors utilized for private offices, storage rooms, conference rooms and kitchen/lounge areas with momentary contact switching in open areas and
conference rooms. 

  

	 	b.	Ratio: Approximately one fixture per 80 usable square feet. 

  

	 	c.	Foot-candles: In accordance with tenant design criteria and Title 24. 

  

	17.	Exit Signs (Illuminated) 

  

	 	a.	Sure-Lites model TC7C71G (edge lit) 277 volt. 

  

	18.	Fire Extinguisher Cabinets 

  

	 	a.	Potter-Roemer, “Buena” series semi-recessed cabinets. 

  

	19.	HVAC 

  

	 	a.	Krueger or Titus variable air volume (VAV) boxes with discharge plenums and branch mains to existing main supply air duct. 

  

	 	b.	Exterior zone VAV boxes include hot water reheat coils and control valves with branch piping to existing hot water mains. 

  

	 	c.	Rigid spiral ductwork, and flexible ductwork (7’-0” maximum length), downstream of VAV boxes will be connected to ceiling diffusers to provide conditioned supply air to
the occupied areas. 

  

	 	d.	Krueger or Titus return air grilles, flush with ceiling, modular, perforated type with metal frame and adjustable blade core. Furnish with factory finish to match ceiling tile and
frame type to match ceiling suspension system. 

  

	 	e.	Thermostat installation, testing and air-balancing. 

  

	 	f.	Typical Zoning Density: 1,000 square feet per zone. 

  

	20.	Permit and Design 

  

	 	a.	Tenant Improvement allowance includes architectural design fees, working drawings, engineering, plan check and permit fees. 

  

 SCHEDULE 2 TO EXHIBIT B - Page 3 

  
 SCHEDULE 3 TO EXHIBIT B

  
 FINAL SPACE PLAN 
  
 [To be Attached] 
  

 SCHEDULE 3 TO EXHIBIT B - Page 1 

  
 SCHEDULE 4 TO EXHIBIT B

  
 TIME DEADLINES 
  

					
	 Dates

	  	 Actions to be Performed

	 A.     
	  	Five (5) business days after the receipt of the Final Working Drawings	  	Tenant to approve Final Working Drawings and deliver the same to Landlord, signed by Tenant.
			
	 B.     
	  	Five (5) business days after the receipt of the Cost Proposal by Tenant	  	Tenant to approve Cost Proposal and deliver Cost Proposal to Landlord, signed by Tenant.

  

 SCHEDULE 4 TO EXHIBIT B - Page 1 

  
 EXHIBIT C

  
 NOTICE OF LEASE TERM DATES 
  

	To:	__________________________ 

	 	__________________________ 

	 	__________________________ 

	 	__________________________ 

  

	 	Re:	Office Lease dated ________________________, 19__, between [INSERT LANDLORD NAME AND LEGAL ENTITY] (“Landlord”), and _______________________ _____________, a
_____________________ (“Tenant”) concerning Suite _______ on floor(s) _______ of the Office Building located at [INSERT BUILDING ADDRESS]. 

  
 Gentlemen: 
  
 In accordance with the Office Lease (the “Lease”), we wish to advise you and/or confirm as follows: 
  
 1. That the Premises are Ready for Occupancy, and that the Lease Term shall
commence as of ________________ for a term of _______________ ending on _______________. 
  
 2. That in accordance with the Lease, Rent commenced to accrue on _______________________. 
  
 3. If the Lease Commencement Date is other than the first day of the month, the first billing will contain a pro rata adjustment. Each billing
thereafter, with the exception of the final billing, shall be for the full amount of the monthly installment as provided for in the Lease. 
  
 4. Rent is due and payable in advance on the first day of each and every month during the Lease Term. Your rent checks should be made payable to
____________________________________ at _______________________________________. 
  
 5. The exact number of rentable square feet within the Premises is _______ square feet. 
  
 6. Tenant’s Share as adjusted based upon the exact number of rentable square feet within the Premises is _______%. 
  

			
	 “Landlord”:

	
	[LANDLORD NAME AND LEGAL ENTITY]
		
	 By:   
	 	 
		
	     Its:
	 	 

  
 Agreed to and Accepted as of
_____________, 19__. 
  

			
	 “Tenant”:

	
	 [TENANT NAME AND LEGAL ENTITY],

		
	 By:   
	 	 
		
	     Its:
	 	 

  

 EXHIBIT C - Page 1 

  
 EXHIBIT D

  
 RULES AND REGULATIONS 
  
 Tenant shall faithfully observe and comply with the following Rules and
Regulations. Landlord shall not be responsible to Tenant for the nonperformance of any of said Rules and Regulations by or otherwise with respect to the acts or omissions of any other tenants or occupants of the Building. 
  
 1. Tenant shall not alter any lock or install any new or additional locks or
bolts on any doors or windows of the Premises without obtaining Landlord’s prior written consent. Tenant shall bear the cost of any lock changes or repairs required by Tenant. Two keys will be furnished by Landlord for the Premises, and any
additional keys required by Tenant must be obtained from Landlord at a reasonable cost to be established by Landlord. 
  
 2. All doors opening to public corridors shall be kept closed at all times except for normal ingress and egress to the Premises, unless electrical hold
backs have been installed. 
  
 3. Landlord reserves the right to
close and keep locked all entrance and exit doors of the Building during such hours as are customary for comparable buildings in the vicinity of the Building. Tenant, its employees and agents must be sure that the doors to the Building are securely
closed and locked when leaving the Premises if it is after the normal hours of business for the Building. Any tenant, its employees, agents or any other persons entering or leaving the Building at any time when it is so locked, or any time when it
is considered to be after normal business hours for the Building, may be required to sign the Building register when so doing. Access to the Building may be refused unless the person seeking access has proper identification or has a previously
arranged pass for access to the Building. The Landlord and his agents shall in no case be liable for damages for any error with regard to the admission to or exclusion from the Building of any person. In case of invasion, mob, riot, public
excitement, or other commotion, Landlord reserves the right to prevent access to the Building during the continuance of same by any means it deems appropriate for the safety and protection of life and property. 
  
 4. Landlord shall have the right to prescribe the weight, size and position
of all safes and other heavy property brought into the Building. Safes and other heavy objects shall, if considered necessary by Landlord, stand on supports of such thickness as is necessary to properly distribute the weight. Landlord will not be
responsible for loss of or damage to any such safe or property in any case. All damage done to any part of the Building, its contents, occupants or visitors by moving or maintaining any such safe or other property shall be the sole responsibility of
Tenant and any expense of said damage or injury shall be borne by Tenant. 
  
 5. No furniture, freight, packages, supplies, equipment or merchandise will be brought into or removed from the Building or carried up or down in the elevators, except upon prior notice to Landlord, and in such
manner, in such specific elevator, and between such hours as shall be designated by Landlord. Tenant shall provide Landlord with not less than 24 hours prior notice of the need to utilize an elevator for any such purpose, so as to provide Landlord
with a reasonable period to schedule such use and to install such padding or take such other actions or prescribe such procedures as are appropriate to protect against damage to the elevators or other parts of the Building. In no event shall
Tenant’s use of the elevators for any such purpose be permitted during the hours of 7:00 a.m. - 9:00 a.m., 11:30 a.m. - 1:30 p.m. and 4:30 p.m. - 6:30 p.m. 
  
 6. Landlord shall have the right to control and operate the public portions of the Building, the public facilities, the
heating and air conditioning, and any other facilities furnished for the common use of tenants, in such manner as is customary for comparable buildings in the vicinity of the Building. 
  
 7. The requirements of Tenant will be attended to only upon application at the office location designated by Landlord.
Employees of Landlord shall not perform any work or do anything outside their regular duties unless under special instructions from Landlord. 
  
 8. Tenant shall not disturb, solicit, or canvass any occupant of the Building and shall cooperate with Landlord or Landlord’s agents to prevent same.

  
 9. The toilet rooms, urinals, wash bowls and other apparatus
shall not be used for any purpose other than that for which they were constructed, and no foreign substance of any kind whatsoever shall be thrown therein. The expense of any breakage, stoppage or damage resulting from the violation of this rule
shall be borne by the tenant who, or whose employees or agents, shall have caused it. 
  
 10. Tenant shall not overload the floor of the Premises, nor mark, drive nails or screws, or drill into the partitions, woodwork or plaster or in any way deface the Premises or any part thereof without Landlord’s
consent first had and obtained. 
  
 11. Except for vending
machines intended for the sole use of Tenant’s employees and invitees, no vending machine or machines of any description other than fractional horsepower office machines shall be installed, maintained or operated upon the Premises without the
written consent of Landlord. 
  
 12. Tenant shall not use or keep
in or on the Premises or the Building any kerosene, gasoline or other inflammable or combustible fluid or material. 
  
 13. Tenant shall not use any method of heating or air conditioning other than that which may be supplied by Landlord, without the prior written consent of
Landlord. 
  
 14. Tenant shall not use, keep or permit to be used
or kept, any foul or noxious gas or substance in or on the Premises, or permit or allow the Premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the Building by reason of noise, odors, or
vibrations, or interfere in any way with other Tenants or those having business therein. 
  
 15. Tenant shall not bring into or keep within the Building or the Premises any animals, birds, bicycles or other vehicles. 
  
 16. No cooking shall be done or permitted by any tenant on the Premises, nor shall the Premises be used for the storage of merchandise, for lodging or for
any improper, objectionable or immoral purposes. Notwithstanding the foregoing, Underwriters’ laboratory-approved equipment and microwave ovens may be used in the Premises for heating food and brewing coffee, tea, hot chocolate and similar
beverages, provided that such use is in accordance with all applicable federal, state and city laws, codes, ordinances, rules and regulations, and does not cause odors which are objectionable to Landlord and other Tenants. 
  

 EXHIBIT D - Page 1 

 17. Landlord will approve where and how telephone and telegraph wires are to be introduced to the
Premises. No boring or cutting for wires shall be allowed without the consent of Landlord. The location of telephone, call boxes and other office equipment affixed to the Premises shall be subject to the approval of Landlord. 
  
 18. Landlord reserves the right to exclude or expel from the Building any
person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or who shall in any manner do any act in violation of any of these Rules and Regulations. 
  
 19. Tenant, its employees and agents shall not loiter in the entrances or
corridors, nor in any way obstruct the sidewalks, lobby, halls, stairways or elevators, and shall use the same only as a means of ingress and egress for the Premises. 
  
 20. Tenant shall not waste electricity, water or air conditioning and agrees to cooperate fully with Landlord to ensure the
most effective operation of the Building’s heating and air conditioning system, and shall refrain from attempting to adjust any controls. This includes the closing of exterior blinds, disallowing the sun rays to shine directly into areas
adjacent to exterior windows. 
  
 21. Tenant shall store all its
trash and garbage within the interior of the Premises. No material shall be placed in the trash boxes or receptacles if such material is of such nature that it may not be disposed of in the ordinary and customary manner of removing and disposing of
trash and garbage in the city in which the Building is located without violation of any law or ordinance governing such disposal. All trash, garbage and refuse disposal shall be made only through entry-ways and elevators provided for such purposes
at such times as Landlord shall designate. 
  
 22. Tenant shall
cooperate with Landlord’s trash recycling programs and the orderly sorting of trash materials to facilitate such programs. 
  
 23. Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governmental agency.

  
 24. Tenant shall assume any and all responsibility for
protecting the Premises from theft, robbery and pilferage, which includes keeping doors locked and other means of entry to the Premises closed, when the Premises are not occupied. 
  
 25. Landlord may waive any one or more of these Rules and Regulations for the benefit of any particular tenant or tenants,
but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any other tenant or tenants, nor prevent Landlord from thereafter enforcing any such Rules or Regulations against any or all tenants of the
Building. 
  
 26. No awnings or other projection shall be attached
to the outside walls of the Building without the prior written consent of Landlord. No curtains, blinds, shades or screens shall be attached to or hung in, or used in connection with, any window or door of the Premises without the prior written
consent of Landlord. All electrical ceiling fixtures hung in offices or spaces along the perimeter of the Building must be fluorescent and/or of a quality, type, design and bulb color approved by Landlord. 
  
 27. The sashes, sash doors, skylights, windows, and doors that reflect or
admit light and air into the halls, passageways or other public places in the Building shall not be covered or obstructed by Tenant, nor shall any bottles, parcels or other articles be placed on the windowsills. 
  
 28. The washing and/or detailing of or, the installation of windshields,
radios, telephones in or general work on, automobiles shall not be allowed on the Project, except by concessionaires of Landlord. 
  
 29. Food vendors appropriately licensed by the appropriate authorities shall be allowed in the Building upon twenty-four (24) hour advance receipt of
a written request from the Tenant. The food vendor shall service only the tenants that have a written request on file in the Project management office. Under no circumstance shall the food vendor display their products in a public or common area
including corridors and elevator lobbies. Any failure to comply with this rule shall result in immediate permanent withdrawal of the vendor from the Building. 
  

30. Tenant must comply with requests by the Landlord concerning the informing of their employees of items of importance to the Landlord. 
  
 31. Tenant shall comply with any non-smoking ordinance adopted by any
applicable governmental authority. There is no smoking permitted in any of the buildings comprising the Project. In addition, Landlord reserves the right to designate, in Landlord’s sole discretion, the only outside areas in the Project where
smoking shall be permitted. 
  
 32. Landlord reserves the right at
any time to change or rescind any one or more of these Rules and Regulations, or to make such other and further reasonable Rules and Regulations as in Landlord’s reasonable judgment may from time to time be necessary for the management, safety,
care and cleanliness of the Premises and Building, and for the preservation of good order therein, as well as for the convenience of other occupants and tenants therein, provided that any such modifications are uniformly applied to all tenants of
the Building (except to the extent that any modifications are necessary, as determined by Landlord in its reasonable judgment, as a result of the particular use of the Premises by Tenant or other tenants of the Building). Landlord shall not be
responsible to Tenant or to any other person for the nonobservance of the Rules and Regulations by another tenant or other person. Tenant shall be deemed to have read these Rules and Regulations and to have agreed to abide by them as a condition of
its occupancy of the Premises. 
  

 EXHIBIT D - Page 2 

  
 EXHIBIT E

  
 FORM OF TENANT’S ESTOPPEL CERTIFICATE

  
 The undersigned, ____________________________________,
is the tenant (“Tenant”) under that certain Lease made and entered into as of _______________________, 199____ (“Lease”) by and between __________________________________, “Landlord”, and the undersigned,
as Tenant, for the premises in Suite ____ at _____________ Enterprise Drive consisting of __________ square feet located in the City of Aliso Viejo, County of Orange, State of California, as more particularly described on Exhibit “A”
attached hereto and incorporated herein (“Premises”), certifies as set forth below. 
  
 1. The Lease. The Lease has been duly executed and delivered by Tenant and is in full force and effect and has not been modified, supplemented or
amended in any way except as follows: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 
			
	(list any modifications, supplements or amendments or write “none”)	 	 	  	 

  
 2. True and Correct
Copy. Tenant has attached to this Estoppel Certificate a true and correct copy of the Lease and all amendments, modifications, and assignments of such Lease. 
  
 3. Entire Agreement. The Lease, as modified by those changes referred to in Section 1 above, represents the
entire agreement between the parties as to the Premises and there are no other agreements, written or oral between Landlord and Tenant concerning the Premises. 
  

4. Commencement Date. The Commencement Date under the Lease was ___________. 
  
 5. Expiration of Term. The term of the Lease is scheduled to expire on _____________. 
  
 6. Rent Due Date. The first payment of Base Monthly Rent under the
Lease became due and payable on _____________________________________, 199__. 
  
 7. Rent Amount. The Base Monthly Rent currently payable by Tenant under the Lease is $            . 
  
 8. Rent Payment Status. All monthly installments of Base Monthly Rent
under the Lease have been paid when due through __________________________________, 199__. 
  
 9. Common Area Maintenance Charges. All amounts due and payable under the Lease other than Base Monthly Rent, including, without limitation, common area maintenance charges, property taxes and operating
expenses, have been paid when due through _______________, 199__. 
  
 10. Payments in Advance. No Base Monthly Rent under the Lease beyond the current month has been paid in advance by Tenant. 
  
 11. Security Deposit; Letter of Credit. No security has been deposited with Landlord except for the amount of $_______ ($______________ of which is
in the form of an irrevocable letter of credit, or letters of credit, and $_____________ of which is in the form of cash), and none of that amount has, to Tenant’s knowledge, been applied by Landlord. 
  
 12. No Free Rent. No free rent periods or other concessions have been
granted to Tenant, except as set forth in Sections 3.2 and 28 of the Lease and except further as follows: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 

  
 13. Insurance.
All insurance required of Tenant by the Lease has been provided by Tenant and all premiums paid, except as follows: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 

  
 14. Occupancy.
Tenant has commenced sole occupancy of the Premises described in the Lease and currently occupies the Premises. 
  
 15. Conditions and Obligations. As of the date hereof, Tenant has satisfied or performed all conditions and obligations under the Lease to be
satisfied or performed by Tenant. 
  
 16. Tenant Not in
Default. The Lease is in good standing and in full force and effect. To the best of Tenant’s knowledge (after diligent inquiry and investigation), Tenant is not in default under the Lease and no event has occurred and no condition exists
that, with the giving of notice or the lapse of time or both, will constitute a default by Tenant under the Lease, except as follows: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 

  

 EXHIBIT E - Page 1 

					
	 	 	 	  	 

  
 17. Landlord Not in
Default. To the best of Tenant’s knowledge (after diligent inquiry and investigation), there are no uncured defaults by Landlord under the Lease and there are no events or conditions which, with the passage of time, or notice, or both,
would constitute a default by Landlord under the Lease, except as follows: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 

  
 Tenant does not
assert, and to the best of its knowledge is not entitled to assert, any claim against Landlord or any defense to or offset against the enforcement of the Lease or any provisions thereof against Landlord. 
  
 18. Assignments. Tenant has not transferred, assigned, hypothecated or
sublet all or any portion of the Premises to any person or entity other than 
  

					
	 	 	 	  	 
			
	 	 	 	  	 
			
	 	 	 	  	 

  
 19. Options.
Tenant does not have any right or option to renew the term of the Lease or to lease other space within the building or project of which the Premises is a part, or any preferential right to purchase all or any part of the Property of which the
Premises is a part, except as set forth in Sections 1.3, 1.4 and 2.2 of the Lease and except further as follows: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 

  
 20. Cancellation
Rights. Tenant does not have any right to cancel the term of the Lease prior to the Termination Date, except as set forth in the Lease, except as follows: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 

  
 21. No Intent to
Terminate. Tenant has not advised Landlord that it intends to terminate the Lease or vacate the Premises prior to the end of the term of the Lease. 
  
 22. Landlord Obligations. Any sums of money payable under the Lease from Landlord to Tenant, including, without limitation, payments for tenant
improvements, have been paid in full and Landlord has no further obligation to make any other payments to Tenant under the Lease, except as follows: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 
			
	 	 	 	  	 

  
 23. Condition of
Premises. All space and improvements leased by Tenant have been completed and furnished in accordance with the provisions of the Lease and Tenant is not aware of any defects in the Premises, the Building or the Project of which the Premises is a
part, except as follows: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 
			
	 	 	 	  	 
			
	 	 	 	  	 

  
 24. Tenant’s
Financial Status. Tenant is not subject to any bankruptcy, insolvency or similar proceedings in any federal, state or other court or jurisdiction. 
  
 25. Notice. Any notice, demand, request, or other instrument given by Landlord to Tenant under the Lease may be addressed to Tenant at the address
specified in the Lease, or at the following address: 
  

					
	 	 	 	  	 
			
	 	 	 	  	 
			
	 	 	 	  	 

  
 26. Hazardous
Substances. Tenant has no knowledge (without any duty of investigation or inquiry) that the Premises contains: (a) asbestos in any form which is or could become friable, (b) urea formaldehyde foam insulation, (c) transformers or
other equipment which contains dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty (50) parts per million, or (d) any other any chemical, material or substance, exposure to which is prohibited, limited or
regulated by any governmental authority pursuant to any environmental or similar legislation and which may or could pose a hazard to the health or safety of the occupants of the Premises, or the occupants of the remainder of the Property, or the
owners of any property located adjacent to the Property. Tenant has not stored or caused or allowed to be stored on the Property any of the equipment or substances described in 

  

 EXHIBIT E - Page 2 

 
Subsections (a) through (d) above, nor does Tenant have any knowledge that any of Tenant’s predecessors-in-interest, if any, stored or caused
or allowed to be stored any such substances on the Property. 
  
 27. Reliance of Purchaser. Tenant acknowledges that this Estoppel Certificate will be delivered to Landlord’s prospective purchaser of the Property, and acknowledges that it recognizes that if the same is done, said prospective
purchaser will be relying upon the statements contained herein in acquiring the Property, and that receipt by it of this Estoppel Certificate is a condition to the acquisition of such Property. The undersigned will attorn to and recognize Buyer,
upon notice to the undersigned that Buyer has become the owner of Landlord’s interest in the Premises under the Lease. 
  
 28. Successors and Assigns. The statements made herein shall be binding upon the Tenant and its successors and assigns, shall inure to the benefit
of the Buyer and its successors and assigns. 
  
 IN WITNESS
WHEREOF, Tenant has executed this Estoppel Certificate as of ______________, __________, and hereby certifies that the statements contained herein are true and correct as of such date. 
  
 Executed at __________________ on the _____ day of ______________, ____________________. 
  

					
	“Tenant”:	 	 
		
	 	 	,
	a	 	 	 	 
			
	 By:
	 	 	 	 
			
	    Its:	 	 	 	 
			
	 By:
	 	 	 	 
			
	    Its:	 	 	 	 

  

 EXHIBIT E - Page 3 

			
	STATE OF CALIFORNIA	 	 }

		
	 	 	 }    SS.

	COUNTY OF                                 	 	 }

  
 On
____________________, _______________, before me, __________________________ personally appeared _____________________________________________________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  
 (This area for official notarial seal) 
  

			
		
	 Signature
	 	 

  

 EXHIBIT E - Page 4 

  
 EXHIBIT A

  
 LEGAL DESCRIPTION OF PROPERTY 
  
 [to be provided] 
  

 EXHIBIT A to EXHIBIT E - Page 1 

  
 EXHIBIT F

  
 SUMMIT 
  
 RECORDING REQUESTED BY 
 AND WHEN RECORDED RETURN TO: 
  
 ALLEN, MATKINS,
LECK, GAMBLE 
 & MALLORY LLP 
 1999 Avenue of
the Stars, 18th Floor 
 Los Angeles, California 90067 
 Attention: Anton N. Natsis, Esq. 
  
 RECOGNITION OF
COVENANTS, 
 CONDITIONS, AND RESTRICTIONS 
  
 This Recognition of Covenants, Conditions, and Restrictions (this “Agreement”) is entered into as of the __
day of ________, __________________, by and between AEW \ PARKER II, LLC, a California limited liability company (“Landlord”), and ________________ (“Tenant”), with reference to the following facts: 
  
 A. Landlord and Tenant entered into that certain Lease dated _____, 199__
(the “Lease”). Pursuant to the Lease, Landlord leased to Tenant and Tenant leased from Landlord space (the “Premises”) located in an office building on certain real property described in Exhibit
“A” attached hereto and incorporated herein by this reference (the “Property”). 
  
 B. The Premises are located in an office building located on real property which is part of an area owned by Landlord containing approximately ___(__)
acres of real property located in the City of Aliso Viejo, California (the “Project”), as more particularly described in Exhibit “B” attached hereto and incorporated herein by this reference. 
  
 C. Landlord, as declarant, has previously recorded, or proposes to record
concurrently with the recordation of this Agreement, a Declaration of Covenants, Conditions, and Restrictions (the “Declaration”), dated ________________, 19__, in connection with the Project. 
  
 D. Tenant is agreeing to recognize and be bound by the terms of the
Declaration, and the parties hereto desire to set forth their agreements concerning the same. 
  
 NOW, THEREFORE, in consideration of (a) the foregoing recitals and the mutual agreements hereinafter set forth, and (b) for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows, 
  
 1.
Tenant’s Recognition of Declaration. Notwithstanding that the Lease has been executed prior to the recordation of the Declaration, Tenant agrees to recognize and by bound by all of the terms and conditions of the Declaration. 

 
 2. Miscellaneous. 
  
 2.1 This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, estates, personal representatives, successors, and assigns. 
  
 2.2 This Agreement is made in, and shall be governed, enforced and construed under the laws of, the State of California. 
  
 2.3 This Agreement constitutes the entire understanding and
agreements of the parties with respect to the subject matter hereof, and shall supersede and replace all prior understandings and agreements, whether verbal or in writing. The parties confirm and acknowledge that there are no other promises,
covenants, understandings, agreements, representations, or warranties with respect to the subject matter of this Agreement except as expressly set forth herein. 
  
 2.4 This Agreement is not to be modified, terminated, or amended in any respect, except pursuant to any
instrument in writing duly executed by both of the parties hereto. 
  
 2.5 In the event that either party hereto shall bring any legal action or other proceeding with respect to the breach, interpretation, or enforcement of this Agreement, or with respect to any dispute relating to any
transaction covered by this Agreement, the losing party in such action or proceeding shall reimburse the prevailing party therein for all reasonable costs of litigation, including reasonable attorneys’ fees, in such amount as may be determined
by the court or other tribunal having jurisdiction, including matters on appeal. 
  
 2.6 All captions and heading herein are for convenience and ease of reference only, and shall not be used or referred to in any way in
connection with the interpretation or enforcement of this Agreement. 
  
 2.7 If any provision of this Agreement, as applied to any party or to any circumstance, shall be adjudged by a court of competent jurisdictions to be void or unenforceable for any reason, the same shall not affect any
other provision of this Agreement, the application of such provision under circumstances different form those adjudged by the court, or the validity or enforceability of this Agreement as a whole. 
  
 2.8 Time is of the essence of this Agreement. 
  
 2.9 The Parties agree to execute any further documents, and
take any further actions, as may be reasonable and appropriate in order to carry out the purpose and intent of this Agreement. 
  
 2.10 As used herein, the masculine, feminine or neuter gender, and the singular and plural numbers, shall each be deemed to include the
others whenever and whatever the context so indicates. 
  

 EXHIBIT F - Page 1 

  
 SIGNATURE PAGE OF
RECOGNITION OF 
 COVENANTS, CONDITIONS AND RESTRICTIONS 
  
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

  

					
	“Landlord”:
	
	AEW \ PARKER II, LLC,
	a California limited liability company
		
	By:	 	Eastrich Aliso, LLC,
	 	 	a Delaware limited liability company,
	 	 	Member - Manager
			
	 	 	By:	 	 
	 	 	 	 	James Flynn
	 	 	 	 	Authorized Signatory

					
			
	“Tenant”:	 	 	 	 
		
	 	 	,
	a	 	 	 	 
			
	By:	 	 	 	 
			
	    Its:	 	 	 	 
			
	By:	 	 	 	 
			
	    Its:	 	 	 	 

  

 EXHIBIT F - Page 2 

  
 EXHIBIT G

  
 FORM OF LETTER OF CREDIT 
  
 (Letterhead of a money center bank 
 acceptable to the Landlord) 
  
 _________________, 199_ 
  
 AEW \ PARKER II, LLC 
 75 Enterprise 
 Suite 300 
 Aliso Viejo, California 92656 
 Attention:
Todd Burnight, Esq. 
  
 Ladies and Gentlemen: 
  
 We hereby establish our Irrevocable Letter of Credit and authorize you to
draw on us at sight for the account of Buy.com the aggregate amount of ________________________ and No/100 Dollars ($___________________). 
  
 Funds under this Letter of Credit are available to the beneficiary hereof as follows: 
  
 Any or all of the sums hereunder may be drawn down at any time and from time to time from and after the date hereof by AEW \
Parker II, LLC, a California limited liability company, or its successors or assigns (collectively, “Beneficiary”) when accompanied by this Letter of Credit and a written statement signed by a representative of Beneficiary,
certifying that such moneys are due and owing to Beneficiary, and a sight draft executed and endorsed by a representative of Beneficiary. 
  
 This Letter of Credit is transferable in its entirety. Should a transfer be desired, such transfer will be subject to the return to us of this advice,
together with written instructions. 
  
 The amount of each draft
must be endorsed on the reverse hereof by the negotiating bank. We hereby agree that this Letter of Credit shall be duly honored upon presentation and delivery of the certification specified above. 
  
 This Letter of Credit shall expire on ______________. 
  
 Notwithstanding the above expiration date of this Letter of Credit, the term
of this Letter of Credit shall be automatically renewed for successive, additional one (1) year periods unless, at least thirty (30) days prior to any such date of expiration, the undersigned shall give written notice to Beneficiary, by
certified mail, return receipt requested and at the address set forth above or at such other address as may be given to the undersigned by Beneficiary, that this Letter of Credit will not be renewed. 
  
 This Letter of Credit is governed by the Uniform Customs and Practice for
Documentary Credits (1983 Revision), International Chamber of Commerce Publication 400. 
  

			
	 Very truly yours,

	
	 (Name of Issuing Bank)

		
	 By:
	 	 

  

 EXHIBIT G - Page 1 

 AEW/PARKER II, LLC 
 c/o Parker Properties, Inc. 
 95 Enterprise, Suite 300 
 Aliso Viejo, CA 92656 
  

					
	To:	  	 BUY.COM
 85 Enterprise
 Aliso Viejo, CA 92656

			
	 	  	Re:	  	 Office Lease dated June, 1999, (the “Office Lease”), as amended, between AEW/PARKER II, LLC, a California limited liability company (“Landlord”), and,
Buy.com, a Delaware corporation, concerning floors 1 and 2 of the Office Building located at 85 Enterprise, Aliso Viejo, CA 92656.

  
 Ladies and Gentlemen: 
  
 In accordance
with Section 1.2 of the Office Lease and notwithstanding anything to the contrary in the Lease, we wish to advise you as follows: 
  
 1. Measurement of the Premises. The exact number of rentable square feet within the Premises is 53,620 square feet and the exact number of
usable square feet within the Premises is 50,010 square feet. 
  
 2. Base Rent. The Base Rent payable by Tenant during the Lease Term shall be in the following amounts: 
  

					
	 Period of Time During
 the Lease Term

	  	Monthly Installment
of Base Rent

	  	 Monthly Rental Rate
 per Rentable Square Foot

			
	Months 1-6  	  	$   92,262.18	  	$ 2.35 (subject to Lease Section 3.2)
	Months 7-66	  	$ 126,007.00	  	$ 2.35

  
 Accordingly, to
account for the difference between the Base Rent Tenant has paid and the actual Base Rent payable by Tenant as calculated above, within thirty (30) days following Tenant’s execution of this letter, Tenant shall be credited by Landlord an
amount equal to $337.71. 
  
 3.
Tenant’s Share. Tenant’s Share, as adjusted based upon exact number of rentable square feet within the Premises, shall equal 48.272 %. 
  

					
	“Landlord”:
	
	 AEW/PARKER II, LLC,
 a California liability
company

		
	By:	 	 Eastrich Aliso, LLC,
 a Delaware limited liability company,
 Member - Manager

		
	By:	 	 /s/ Jonathan A. Spound

	Name:	 	Jonathan A. Spound
	Its:	 	Authorized Signatory

  

			
	 Authorized Signatory
 Agreed to and Accepted
as
 of February 22, 2001
  
 “Tenant”:
  
 Buy.com,
 a Delaware corporation,

		
	By:	 	 /s/ Robert R. Price

	Its:	 	Chief Financial Officer
		
	By:	 	  

	Its:	 	  

 SECOND AMENDMENT TO LEASE 
  
  
 This Second Amendment to Lease (the
“Second Amendment”) is made and entered into, for reference purposes, as of March 19, 2003 by and between OTR, an Ohio general partnership, as nominee of the STATE TEACHERS RETIREMENT BOARD OF OHIO, a statutory organization
created by the laws of the State of Ohio (“Landlord”), and BUY.COM, INC., a Delaware corporation (“Tenant”) with reference to the following facts and circumstances: 
  
 A. Landlord’s predecessor-in-interest, AEW/PARKER II, LLC, a California
limited liability company, and Tenant entered into a Lease dated as of June 1999, as thereafter amended by the Amendment letter thereto dated February 22, 2001 (collectively, the “Lease”) pursuant to which Tenant leases that
certain premises comprising the first and second floors (the “Original Premises”) in the office building owned by Landlord located at 85 Enterprise, Aliso Viejo, California (the “Building”). Landlord subsequently
acquired all right, title and interest in and to the Building and to its predecessor’s leasehold under the Lease. 
  
 B. Tenant now desires to (i) enter into a sublease with Pacific Shore Funding, as “Sublessee” (“Sublease”) for the portion
of the Original Premises comprising the second floor and containing approximately 28,719 rentable square feet, as remeasured (“Sublease Space”); (ii) remain as tenant under the Lease as to the remainder of the Original Premises
(the “First Floor Premises”); (iii) assign its interest in the Sublease, as Sublessor thereunder, to Landlord in exchange for being released from all of Tenant’s liabilities and obligations under the Lease with respect to
the Sublease Space; and (iv) make other modifications to the Lease. 
  
 C. Landlord is willing to approve the Sublease, accept assignment of Tenant’s interest, as Sublessor, under the Sublease, and to release Tenant from its liabilities and obligations with respect to the Sublease
Space, all on the terms and conditions set forth below. 
  
 D.
Capitalized terms used herein without definition shall have the meanings given to them in the Lease. 
  
 NOW, THEREFORE, FOR VALUABLE CONSIDERATION, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant agree as follows: 

 
 1. Release of Liability and Obligations. As of the Effective
Date of this Second Amendment (as defined in Paragraph 8 below), Landlord hereby releases Tenant and Tenant’s shareholders, directors, parent corporation, subsidiaries of Tenant and agents from any further duties, liabilities or obligations
under the Lease as such duties, liabilities and/or obligations pertain to the Sublease Space and arise from or after the Effective Date hereof with respect to the Lease, it being the express intentions of 

 Landlord and Tenant that the Lease remain in full force and effect, but that Tenant’s duties, liabilities and/or
obligations under the Lease as the same pertain to the Sublease Space shall be released in light of the assumption of those duties, liabilities and/or obligations as to the Sublease Space by the Sublessee under the terms of the Sublease. Tenant
acknowledges and agrees that it shall continue to be responsible for all duties, liabilities and obligations under the Lease with respect to the First Floor Premises. 
  
 2. Eliminated Provisions of Lease. Landlord and Tenant hereby acknowledge and agree that all of the provisions
of (a) Section 1.3 of the Lease with respect to the Building Expansions Rights described therein, (b) Section 1.4 of the Lease with respect to the Existing Building Right of First Offer rights described therein, and
(c) Section 2.2 of the Lease with respect to the Option to extend as described therein, all are hereby deleted in their entirety and of no further force or effect as to the Lease or Sublease. 
  
 3. Modification of Provisions of Lease as Applicable to First Floor
Premises. From and after the Effective Date of this Second Amendment: (a) except as expressly provided for otherwise in this Second Amendment, those provisions of the Lease pertaining to monetary obligations that are otherwise due and
payable or owing by Tenant with respect to the entirety of the Original Premises and/or otherwise computed based upon the square footage of or allocable expressly to the use or occupancy of the Original Premises are hereby modified to apply only to
the First Floor Premises and shall be prorated accordingly; (b) except as expressly provided for otherwise in this Second Amendment, those provisions of the Lease pertaining to non-monetary obligations or covenants that are otherwise the duties
or responsibilities of Tenant with respect to the entirety of the Original Premises and/or are otherwise based upon the square footage of or allocable expressly to the use or occupancy of the Original Premises are hereby modified to apply only to
the First Floor Premises and shall be prorated accordingly if applicable; and (c) the provisions of Sections 12 and 28 of the Lease with respect to parking are hereby modified so as to provide that the parking spaces allocable to Tenant shall
be prorated and based upon the square footage of the First Floor Premises only. 
  
 4. Modification of Provisions of Lease re Security Deposit/Letter of Credit. The provisions of Section 21 with respect to the Security Deposit and Letter of Credit are hereby modified as hereinafter
set forth. The full amount of the Security Deposit proceeds currently being held by Landlord is $487,245.98 (the “Security Deposit Proceeds”), it being acknowledged by Landlord and Tenant that the Letter of Credit originally delivered by
Tenant to Landlord has since been converted to Security Deposit proceeds and reduced in accordance with and as allowed pursuant to the provisions of Section 21. Landlord and Tenant agree that: (i) the Security Deposit Proceeds represents
the total amount of Security Deposit that Landlord shall be entitled to hold for remaining Term of the Lease, (ii) there shall be no further reductions in the amount or level thereof during the remaining Term of the Lease, (iii) if
Landlord exercises its right under Section 21 of the Lease to draw upon all or any portion of the Security Deposit Proceeds 
  

 2 

 for payment of any Rent or any other sum in default, or for the payment of any amount that Landlord may reasonably spend
or may become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default, or as a result of Tenant’s default in any payment otherwise
due and owing by Tenant to Landlord under the Promissory Note described in Paragraph 7.c below, then, upon five (5) days’ written notice by Landlord to Tenant, Tenant shall be required to deposit sufficient funds to restore the Security
Deposit Proceeds to its original level and failure to do so shall constitute a default under the Lease and the Promissory Note, and (iv) the Promissory Note is secured by Tenant’s granting of a security interest in the Security Deposit
Proceeds to Landlord, as evidenced by the Security Agreement and Pledge executed and delivered by Tenant to Landlord concurrently with the Promissory Note, it being the express intentions of Landlord and Tenant that Landlord’s security interest
in the Security Deposit Proceeds be a priority right and that Landlord shall be a secured creditor in the event of Tenant’s subsequent bankruptcy or for any other creditors’ claims proceedings against Tenant. 
  
 5. Landlord’s Early Termination Right. Notwithstanding any
other provisions in the Lease to the contrary, in the event Landlord secures a potential tenant interested in leasing the entire First Floor Premises then Landlord shall have the right, upon at least ninety (90) days’ prior written notice
to Tenant, to terminate the Lease with respect to the First Floor Premises as of the termination date set forth in such written notice, which termination date shall be no sooner than ninety (90) calendar days from the date such written notice
is delivered by Landlord to Tenant (the “Termination Date”). As of the Termination Date, Tenant shall deliver the First Floor Premises to Landlord in the manner and condition required under the Lease and thereafter the Lease shall be
deemed terminated as to the First Floor Premises, and of no further force and effect as to Tenant except as to those provisions which are stated as surviving the expiration or earlier termination of the Lease which shall survive such early
termination of the Lease by Landlord as provided herein. Upon such termination by Landlord, Landlord shall be entitled to apply the Security Deposit Proceeds to the balance then due and owing under the Promissory Note and for payment of any other
financial obligations then due and owing to Landlord by Tenant under the terms of the Lease, as amended, as of the Termination Date, and thereafter any remaining funds of the Security Deposit Proceeds shall be returned to Tenant, along with the
original Promissory Note, marked “paid” and a release of the Security Agreement and Pledge. 
  
 6. Representations and Warranties of Tenant. As of the Effective Date, Tenant hereby warrants and represents to Landlord that: 

 
 a. All of the Tenant’s leasehold right, title and
interest in and to the Lease is wholly vested in Tenant, and that Tenant has full right, power and authority to enter into this Second Amendment. 
  

 3 

 b. The Lease, as modified herein, is and will continue to be a valid and binding agreement of Tenant,
enforceable against Tenant. Tenant has duly performed all of its material obligations under the Lease to the extent that such obligations to perform have accrued and no breach or default, alleged breach or default, or event which would (with the
passage of time, notice or both) constitute a breach or default of a material obligation thereunder by Tenant or, to the knowledge of Tenant, any other party or obligor with respect thereto, has occurred which has not been cured. 
  
 c. No order has been made, petition presented or resolution passed for the
winding up of Tenant and no meeting has been convened for the purpose of winding up Tenant. Tenant has not been a party to any transaction which could be avoided in a winding up. No steps have been taken for the appointment of an administrator or
receiver (including an administrative receiver) in respect of Tenant and/or of all or any part of Tenant’s interest in the Lease. Tenant has not made or proposed any arrangement, general assignment, liquidation or distribution plan with its
creditors or any class of its creditors. Tenant is not insolvent, is not unable to pay its debts within the meaning of the insolvency legislation applicable to Tenant and has not stopped paying its debts as they fall due. 
  
 d. Landlord is not in any respect in default in the performance of any of its
obligations under the Lease 
  
 7. Effectiveness of
Amendment. The effectiveness of this Second Amendment is subject to the full and complete satisfaction of each of the following conditions precedent which will operate to cure for Landlord any known defaults of Tenant as of the date hereof:

  
 a. The execution and delivery of the Sublease
between Tenant and Pacific Shore Funding in a form approved by Landlord; 
  
 b. The execution and delivery of a valid and binding Assignment and Assumption of Sublease between Landlord and Tenant whereby Tenant assigns all of its leasehold right, title and interest as Sublessor under the
Sublease to Landlord and Landlord assumes Tenant’s obligations under the Sublease, in a form approved by Landlord and Tenant; 
  
 c. The execution and delivery of a valid and binding promissory note by Tenant in favor of Landlord in the principal amount of $438,139.71
(“Note”), representing past due rent due by Tenant under the terms of the Lease, on such terms and interest rate and in a form approved by Landlord and Tenant; 
  
 d. The execution and delivery of a valid and binding Security Agreement and Pledge by Tenant in favor of
Landlord, in a form approved by Landlord and Tenant, whereby Tenant pledges to Landlord a priority, secured interest in the security deposit currently being held by Landlord on behalf of Tenant under the Lease, as security for repayment of the Note;
and 
  

 4 

 e. Cash payment by Tenant to Landlord of the sum of $241,665.30, representing the differential in rent
between the rates provided in the Sublease as compared to the rates provided in the Lease with respect to the Sublease Space. 
  
 8. Effective Date. This Second Amendment shall be effective as of the last date on which all of the conditions precedent set forth in
Paragraph 7 above have been satisfied (the “Effective Date”), as shall be subsequently confirmed in writing by Landlord to Tenant. 
  
 9. Authorization Disclosure; Exculpation. This Second Amendment is executed by certain employees of The State Teachers Retirement System of
Ohio (“STRS”), not individually, but solely on behalf of Landlord, the authorized nominee and agent for STRS. In consideration for entering into this Second Amendment, Tenant hereby waives any right to bring a cause of action against the
individuals executing this Second Amendment on behalf of Landlord (except for any cause of action based upon lack of authority or fraud), and all persons dealing with Landlord must look solely to Landlord’s assets for the enforcement of any
claim against Landlord, and the obligations hereunder are not binding upon, nor may resort be had to the private property of any of the trustees, officers, directors, employees or agents of STRS. 
  
 10. Time of Essence. Time is of the essence with respect to the
performance of every provision of this Second Amendment. 
  
 11.
No Further Modification. Except as set forth in this Second Amendment, all of the terms and provisions of the Lease shall apply with respect to the First Floor Premises to the extent applicable (including, without limitation, those
provisions pertaining to the payment of rent, utilities and services, maintenance and repairs, insurance, tenant improvements which the Tenant may elect to make at its sole cost and expense, damage or destruction, alterations, and indemnification
provisions as applicable to Tenant) and shall remain unmodified and in full force and effect. 
  
 12. Conflict of Terms. In the event of any conflict between the provisions of this Second Amendment and the Lease, the terms of this Second Amendment shall control. Except as specifically modified,
amended or deleted hereunder and except as to where this Second Amendment would be in conflict otherwise with the Lease, the Lease, as amended, hereby remains in full force and effect. 
  
 13. Miscellaneous. 
  
 a. This Second Amendment shall be binding on and inure to the benefit of the parties herein, and their respective successors and assigns. 
  
 b. This Second Amendment may be executed in any number of counterparts, each
of which shall be deemed an original and all of which taken together shall constitute one and the same agreement. 
  

 5 

 c. This Second Amendment shall be governed by, interpreted under, and construed and enforced in
accordance with the laws of the State of California. 
  
 IN
WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands and seals as of the day, month and year first written above to this Second Amendment to Lease. 
  
  

					
	LANDLORD:    
		
	 	 	 OTR, an Ohio general partnership, as nominee of
 the STATE TEACHERS RETIREMENT BOARD
 OF OHIO, a statutory organization created by the
 laws of the State of Ohio

			
	 	 	By:	 	 /s/ Stephen A. Mitchell

	 	 	Name:	 	Stephen A. Mitchell
	 	 	Title:	 	Deputy Executive Director, Investments

  

					
	
	TENANT:        
		
	 	 	BUY.COM, INC.,
	 	 	A Delaware corporation
			
	 	 	By:	 	 /s/ Robert R. Price

	 	 	Name:	 	ROBERT R. PRICE
	 	 	Title:	 	 PRESIDENT, CFO

			
	 	 	By:	 	  

	 	 	Name:	 	  

	 	 	Title:	 	  

  

 6 

 THIRD AMENDMENT TO LEASE 
  
 This THIRD AMENDMENT TO LEASE (“Amendment”) is dated as of August 18th, 2004, and is entered into by and between RREEF AMERICA REIT II CORP. FFF, a Maryland corporation (“RREEF”), and BUY.COM, INC., a
Delaware corporation (“Tenant”). 
  
 R
E C I T A L S 
  
 A. OTR, an Ohio general partnership, as nominee of the STATE TEACHERS RETIREMENT BOARD OF OHIO, a statutory organization created by the laws of the state of Ohio (“OTR”), successor-in-interest to AEW/PARKER II, LLC, a
California limited liability company, and Tenant previously entered into that certain Lease dated as of June 1999 (the “Original Lease”), as amended by that certain letter agreement thereto dated February 22, 2001 (the
“First Amendment”), and that certain Second Amendment to Lease dated as of March 19, 2003 (the “Second Amendment”) (the Original Lease, the First Amendment and the Second Amendment, collectively, the
“Lease”) pursuant to which Tenant leases that certain premises comprising the first floor (the “Premises”) at 85 Enterprise, Aliso Viejo, California (the “Property”). 
  
 B. Pursuant to that certain Agreement of Purchase and Sale between OTR and
RREEF dated June 21, 2004 (the “Purchase Agreement”), subsequent to the date hereof, RREEF shall acquire all right, title and interest of OTR in and to the Property. 
  
 C. RREEF and Tenant desire to amend the Lease as herein set forth which shall become effective only upon the acquisition of
the Property by RREEF under the Purchase Agreement. 
  
 A
G R E E M E N T 
  
 In consideration of the foregoing recitals, the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, RREEF and Tenant hereby
agree as follows: 
  
 1. Capitalized Terms.
All initially capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Lease. 
  
 2. Extension of Lease Term. The “Lease Term” is hereby extended to June 30, 2009. The “Lease Expiration
Date” shall hereafter be June 30, 2009. 
  
  

 3.  Adjustment to Base Rent. As of August 18, 2004, Base Rent for the
periods of the Lease Term set forth below shall be in the corresponding amounts set forth below: 
  

					
	Months of the Lease
Term                                       
                         	  	 Monthly Base Rent Per
 Rentable Square Foot of
 the Premises
	    	Monthly Base Rent
			
	 August 18, 2004 – August 31, 2004
	  	$2.35	    	$58,517.35
			
	 September 1, 2004 – November 14, 2004
	  	No Monthly Base Rent	    	$0.00
			
	 November 15, 2004 – July 31, 2005
	  	$2.35	    	$58,517.35
			
	 August 1, 2005 – July 31, 2006
	  	$2.42	    	$60,260.42
			
	 August 1, 2006 – July 31, 2007
	  	$2.49	    	$62,003.49
			
	 August 1, 2007 – July 31, 2008
	  	$2.56	    	$63,746.56
			
	 August 1, 2008 – June 30, 2009
	  	$2.64	    	$65,738.64

  
  
 4. Base Year. As of January 1, 2005, the term “Base Year” shall mean the calendar year 2004. Tenant shall continue to
pay Tenant’s Share of Direct Expenses for the remaining balance of calendar year of 2004 based on the existing base year under the Lease of calendar year 2000. Commencing on January 1, 2005, Tenant shall pay as additional rent
Tenant’s Share of Direct Expenses which are in excess of Direct Expenses incurred in the 2004 Base Year. 
  
 5. “AS IS”. Tenant accepts the Premises in its “as-is” condition, and acknowledges that RREEF shall have no obligation
to alter, remodel, repair, or to make any improvements to the Premises in connection with this Amendment. 
  
 6. Security Deposit. Pursuant to the terms of the Second Amendment, OTR currently holds a security deposit of $487,245.98 (the
“Security Deposit Proceeds”). On the Effective Date, RREEF shall return to Tenant the amount of $414,933.48 from the Security Deposit Proceeds such that the remaining balance of the Security Deposit Proceeds held by RREEF under the
Lease shall be $72,312.50 (i.e., an amount equal to 110% of the last month’s Base Rent ($2.64 x 24,901 x 110%)). 
  
 7. Guaranty of Obligations under the Lease and Promissory Note. In connection with the return of a portion of the Security Deposit Proceeds
described in Section 6 above: (a) Tenant and RREEF shall enter into an amendment of that certain Security Agreement and Pledge dated as of March 1, 2003, executed by Tenant, in favor of OTR to reflect the decrease in the amount of the
security deposit in the form attached hereto as Exhibit A (the “Amendment to Security Agreement”): and (b) Scott A. Blum, individually, and Scott A. Blum, trustee of The Scott A. Blum Separate Property Trust under
declaration of trust dated August 2, 1995, as 
  

 2 

 amended January 14, 2000, shall execute a limited guaranty in an amount not to exceed $414,933.48 (i.e., that
portion of the Security Deposit Proceeds being returned to Tenant), guarantying the performance of Tenant’s obligations under the Lease (as amended by this Amendment), Tenant’s obligations under that certain Promissory Note dated
March 1, 2003 (the “Note”), made by Tenant in favor of OTR (as endorsed and delivered to RREEF on the Effective Date) in the original stated principal amount of $438,139.71, and Tenant’s obligations under the Security Agreement
and Pledge, in the form attached hereto as Exhibit B (the “Limited Guaranty”). Notwithstanding the foregoing, the term of the Limited Guaranty shall expire as of June 30, 2005 provided that Tenant (i) is not in default
under the Note and all sums due under the Note have been paid in full, and (ii) is not in default under the Lease. If the conditions in the preceding sentence are not met as of June 30, 2005, then the term of the Limited Guaranty shall
continue until the expiration or earlier termination of the Lease and payment of all sums due under the Note. 
  
 8.  Broker. RREEF and Tenant hereby warrant to each other that they have had no dealings with any real estate broker or agent in
connection with the negotiation of this Amendment. Each party agrees to indemnify and defend the other party against and hold the other party harmless form any and all claims, demands, losses, liabilities, lawsuits, judgments, and costs and expenses
(including, without limitation, reasonable attorney’s fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of the indemnifying party’s dealings with any real estate broker or agent.

  
 9.  Effective Date. The effectiveness
of this Amendment is subject to and contingent upon RREEF acquiring all of OTR’s right, title and interest in and to the Property pursuant to the Purchase Agreement and the execution and delivery of the Amendment to Security Agreement and the
Guaranty (the “Effective Date”). If and when such acquisition occurs, this Amendment shall be effective automatically on the Effective Date with no further action required on the part of the parties hereto. 
  
 10. Address of Landlord. As of the Effective Date, the address
of the Landlord under the Lease shall be: . 
  

	
	 RREEF AMERICA L.L.C.
 101 California Street, 26th
Floor
 San Francisco, CA 94111
 Attention:  Robin
Iles

  

 3 

 11. Option Term. The following Section 2.2 is hereby added to the Lease. 

 
 “2.2 Option Term. 
  
 2.2.1 Option Right. Landlord hereby grants Tenant one
(1) option to extend the Lease Term (“Extension Option”) for a period of two (2) years (“Option Term”), which option shall be exercised only by written notice delivered by Tenant to Landlord as provided below, provided
that, as of the date of delivery of such notice, Tenant is not in default under this Lease (after the expiration of any applicable cure periods). Upon the proper exercise of such option to extend, and provided that, as of the end of the initial
Lease Term, Tenant is not in default under this Lease (after the expiration of any applicable cure periods), the Lease Term, as it applies to the Premises, shall be extended for a period of two (2) years. The rights contained in this
Section 2.2 shall be personal to Buy.com, Inc. and may only be exercised by Buy.com, Inc. 
  
 2.2.2 Option Rent. The Base Rent payable by Tenant during the periods of the Option Term set forth below shall be in the
corresponding amounts set forth below (the “Option Rent”): 
  

					
	 Months of the Option
 Term
	 	 Monthly Option Rent Per
 Rentable Square Feet of
 the Premises
	 	Monthly Option Rent
			
	July 1, 2009 – June 30, 2010	 	$2.78	 	$69,224.78
			
	July 1, 2010 – June 30, 2011	 	$2.92	 	$72,710.92

  
  
 2.2.3 Exercise of Options. The Extension Option contained in this Section 2.2 shall be exercised by Tenant, if at all, only in
the following manner: (i) Tenant shall deliver written notice (the “Tenant’s Notice”) to Landlord not more than three hundred sixty-five (365) days nor less than two hundred seventy (270) days prior to the expiration of
the initial Lease Term, stating that Tenant is exercising its option; and (ii) Landlord, after receipt of Tenant’s notice, shall deliver notice (the ‘Option Rent Notice”) to Tenant not less than one hundred eighty (180) days
prior to the expiration of the initial Lease Term. 
  
 2.2.4 Other Lease Terms of Option Term. With respect to the Extension Option, Landlord shall not provide Tenant with any tenant improvements or allowances, rental abatement or concessions of any kind. Tenant accepts the Premises in
its “as-is” condition, and acknowledges that RREEF shall have no obligation to alter, remodel, repair, or to make any improvements to the Premises in connection with the Extension Option. Except for the modifications to the 
  

 4 

 Lease Term, the Base Rent and the allowances described in this Section 2.2, all terms, provisions,
conditions and covenants shall remain in full force and effect during the applicable Option Term, including a Base Year of 2000, except there shall be no further option term. 
  
 12. Effect of Amendment of Lease. Except to the extent the Lease is modified by this Amendment, the terms and
provisions of the Lease shall remain unmodified and in full force and effect. 
  
 13. Construction. In the event of a conflict between the terms of the Lease and the terms of this Amendment, the terms of this Amendment shall govern and prevail. 
  
 14. Miscellaneous. 
  
 a) Binding Effect. This Amendment shall be binding upon and inure to
the benefit of the parties hereto, their heirs, estates, personal representatives, successors and assigns. 
  
 b) Governing Law. This Amendment shall be construed in accordance with and governed by the laws of the State of California. 
  
 c) Entire Agreement. This Amendment constitutes the entire
understanding and agreement of RREEF and Tenant with respect to the specific subject matter hereof, and shall supersede and replace all prior understandings and agreements, whether verbal or in writing. 
  
 d) Authority. Each person signing this Amendment on behalf of the
respective parties represents and warrants that he or she is authorized to execute and deliver this Amendment, and that this Amendment will thereby become binding upon RREEF and Tenant, respectively. 
  
 e) Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 5 

 IN WITNESS WHEREOF, RREEF and Tenant have executed this Amendment as of the date first written above.

  

			
	RREEF:
	
	 RREEF AMERICA REIT II CORP. FFF,
 a Maryland
corporation

		
	 By:
	 	 /s/ Marlena M. Casellin

	 Name:
	 	 MARLENA M. CASELLIN

	 Title:
	 	 TREASURER

	
	TENANT:
	
	 BUY.COM, INC.,
 a Delaware
corporation

		
	 By:
	 	 /s/ Robert R. Price

	 Name:
	 	 ROBERT R. PRICE

	 Title:
	 	 CFO

  

 6Sale and Purchase agreement dated October 13, 2005

 Exhibit 10.1*** 
  
 2005 
  
 AGREEMENT FOR THE SALE AND PURCHASE OF THE ENTIRE ISSUED SHARE CAPITAL OF BANANASTOCK LIMITED 
  

	(1)	CATHERINE SARA YEULET 

	(2)	JUPITERIMAGES (UK) LIMITED 

  

	***	Portions of the exhibit have been omitted and separately filed with the Commission. Confidential treatment has been requested for the omitted portions of the exhibit.

 Contents 
  

					
	 Clause

	  	 	  	Page

	 1.
	  	DEFINITIONS AND INTERPRETATION	  	4
			
	 2.
	  	AGREEMENT FOR SALE	  	9
			
	 3.
	  	CONSIDERATION	  	9
			
	 4.
	  	COMPLETION ACCOUNTS	  	10
			
	 5.
	  	ADJUSTMENT TO THE CONSIDERATION	  	11
			
	 6.
	  	APPOINTMENT OF INDEPENDENT ACCOUNTANTS	  	12
			
	 7.
	  	COMPLETION	  	13
			
	 8.
	  	GUARANTEES AND INDEBTEDNESS	  	15
			
	 9.
	  	WARRANTIES AND INDEMNITIES	  	16
			
	 10.
	  	TAX	  	19
			
	 11.
	  	PROTECTION OF THE INTERESTS OF THE BUYER	  	19
			
	 12.
	  	PAYMENTS AND INTEREST	  	23
			
	 13.
	  	ASSIGNMENT	  	25
			
	 14.
	  	ANNOUNCEMENTS AND CONFIDENTIALITY	  	25
			
	 15.
	  	COSTS	  	25
			
	 16.
	  	NOTICES	  	25
			
	 17.
	  	THIRD PARTY RIGHTS	  	26
			
	 18.
	  	WAIVER	  	27
			
	 19.
	  	CUMULATIVE RIGHTS	  	27
			
	 20.
	  	FURTHER ASSURANCE	  	27
			
	 21.
	  	NO MERGER	  	28
			
	 22.
	  	COUNTERPARTS	  	28
			
	 23.
	  	ENTIRE AGREEMENT	  	28
			
	 24.
	  	GOVERNING LAW AND JURISDICTION	  	28

  

 2 

					
	 SCHEDULE 1
	  	 
	 	  	 Part 1: Details of the Company
	  	30
		
	 SCHEDULE 2
	  	 
	 	  	 Warranties
	  	31
	 	  	 Part 1: General
	  	31
	 	  	 Part 2: Accounts, Financial, Banking and Current Trading
	  	35
	 	  	 Part 3: Compliance and Litigation
	  	40
	 	  	 Part 4: Contracts
	  	44
	 	  	 Part 5: Assets
	  	48
	 	  	 Part 6: Environmental Matters
	  	51
	 	  	 Part 7: Property
	  	53
	 	  	 Part 8: Employment
	  	56
	 	  	 Part 9: Pensions
	  	59
	 	  	 Part 10: Intellectual Property
	  	63
	 	  	 Part 11: Information Technology
	  	68
		
	 SCHEDULE 3
	  	 
	 	  	 Tax
	  	72
	 	  	 Part 1: Tax definitions and interpretation
	  	72
	 	  	 Part 2: Tax Warranties
	  	78
	 	  	 Part 3: Tax Covenant
	  	90
	 	  	 Part 4: Miscellaneous, including exclusions and limitations, conduct of claims and payments
	  	93
		
	 SCHEDULE 4
	  	 
	 	  	 Property
	  	 
		
	 SCHEDULE 5
	  	 
	 	  	 Limitations on Seller’s Liability
	  	101
		
	 SCHEDULE 6
	  	 
	 	  	 Completion Accounts
	  	 
	 	  	 Part 1: Basis of Preparation of the Completion Accounts
	  	103
	 	  	 Part 2: Net Current Asset Statement
	  	106
	 	  	 Part 3: Format of Completion Accounts
	  	107

  
 Agreed Form Documents 
  
 Escrow
Agreement 
  
 Resignations and acknowledgements
of directors 
  
 Power of Attorney 

 
 Minutes of the Buyer 
  
 Licence referred to in clause 7.2.10 
  
 Secondment Agreement referred to in clause 7.2.11

  

 3 

	THIS  AGREEMENT	is made
on                             2005 

  
 BETWEEN: 
  

	(1)	CATHERINE SARA YEULET, of Henley House, Howe Road, Watlington, Oxfordshire OX49 5EL (“Seller”); 

  

	(2)	JUPITERIMAGES (UK) LIMITED, a company incorporated in England and Wales (with registered number 1554847) and whose registered office is at 5 Finch Drive, Springwood
Industrial Estate, Braintree, Essex CM7 2SF (“Buyer”). 

  
 RECITALS: 
  

	(A)	The Company (as defined below) is a private company limited by shares. Further details about the Company are set out in part 1 of schedule 1. 

  

	(B)	The Seller wishes to sell and the Buyer wishes to buy all of the issued share capital of the Company on the terms of this Agreement. 

  
 IT IS AGREED as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	In this Agreement, the following words and expressions shall have the following meanings unless the context requires otherwise: 

  

			
	“Accounts”	  	the individual unaudited accounts (within the meaning of section 226 Companies Act 1985) of the Company for the two financial periods ended on the Accounts Date, together in each case with the
notes and directors’ reports and all other statements incorporated in or annexed to them, as the same are annexed to the Disclosure Letter;
		
	“Accounts Date”	  	31 December 2004;
		
	“Applestock”	  	Applestock Limited, a private company limited by shares, incorporated in England and Wales with registered number 5543512 in the process of changing its name to Monkey Business Productions
Limited;
		
	“Associate”	  	in relation to any person, a person who is connected with that person within the meaning of section 839 ICTA;

  

 4 

			
		
	“Business Day”	  	a day on which banks are open for business in London, other than Saturday or Sunday;
		
	“Buyer’s Accountants”	  	the Buyer’s accountants for the time being;
		
	“Buyer’s Group”	  	the Buyer, any ultimate parent undertaking of the Buyer for the time being and all direct or indirect subsidiary undertakings for the time being of any such parent undertaking;
		
	“Buyer’s Solicitors”	  	Olswang of 90 High Holborn, London WC1V 6XX;
		
	“CAA”	  	the Capital Allowances Act 2001;
		
	“Company”	  	Bananastock Limited, a private company limited by shares incorporated in England and Wales with registered number 4152926;
		
	“Completion Accounts”	  	a balance sheet of the Company as at the Completion Date and a profit and loss account of the Company for the period from the Accounts Date to the Completion Date prepared in accordance with
part 1 of schedule 6 (Completion Accounts), in each case using the format set out in part 3 of schedule 6;
		
	“Completion Date”	  	the date on which Completion takes place;
		
	“Completion”	  	completion of the sale and purchase of the Shares in accordance with this Agreement;
		
	“Disclosure Letter”	  	the disclosure letter in the agreed form from the Seller to the Buyer, dated with the date of this Agreement together with the disclosure documents attached to it;
		
	“Encumbrance”	  	a mortgage, charge, pledge, lien, option, restriction, right of first refusal, right of pre-emption or other third party right, interest or claim of any kind, or any other encumbrance or
security interest of any kind (including, without limitation, any liability imposed or right conferred by or under any legislation) or any other type of preferential arrangement (including, without limitation, a title transfer or retention
arrangement) having similar effect;

  

 5 

			
		
	“Escrow Account”	  	has the meaning given to it in the Escrow Agreement;
		
	“Escrow Agreement”	  	the agreement between the Buyer, the Seller, the Buyer’s Solicitors and the Seller’s Solicitors in the agreed form in relation to that part of the purchase price payable for the Shares
to be paid into escrow;
		
	“Escrow Claim”	  	has the meaning given to it in the Escrow Agreement;
		
	“Excluded Assets”	  	such of the Company’s camera equipment, Volvo and Audi cars, office equipment, furniture, certain props, gym equipment, certain photographic images and certain computer equipment as is to
be transferred to Applestock immediately prior to Completion in accordance with the Hive Across Agreement;
		
	“Hive Across Agreement”	  	the agreement in the agreed form between the Company, Applestock and the Seller for the sale of certain assets of the Company to Applestock and to be entered into immediately prior to
Completion;
		
	“ICTA”	  	the Income and Corporation Taxes Act 1988;
		
	“Independent Accountants”	  	the independent firm of chartered accountants appointed under clause 6 (Independent Accountants);
		
	“Know-How”	  	all know-how, expertise, data, information and/or experience of the Seller and those employees of the Company transferring to Applestock under the Hive Across Agreement, used in the business of
the Company or relevant to the operation of the business of the Company as it shall continue following Completion;
		
	“Lease”	  	the lease described in schedule 4;
		
	“Losses”	  	in relation to any matter, all actual liabilities, losses, claims and reasonable costs and expenses relating to that matter;
		
	“Management Accounts”	  	the unaudited management accounts of the Company comprising a balance sheet as at 31 July 2005 and a profit and loss account for the period which began on 1 January 2005 and ended on 31 July
2005 as the same are annexed to the Disclosure Letter;

  

 6 

			
		
	 “Net Current Asset
 Statement”
	  	the statement of the Net Current Asset Value in the format set out in part 2 of schedule 6 (Completion Accounts);
		
	“Net Current Asset Value”	  	the aggregate value of the current assets of the Company (excluding the Excluded Assets and the amount of the consideration or any other payment received or receivable by the Company under the
Hive Across Agreement) as at the Completion Date, less the aggregate amount of the current liabilities of the Company as at the Completion Date, as shown in the Completion Accounts;
		
	“proceedings”	  	any action or proceedings before a court or tribunal or a statutory, governmental or regulatory body (including an arbitration);
		
	“Production Agreement”	  	the agreement in the agreed form between the Company, Applestock and the Seller relating to the sale of photographs to the Company;
		
	“Property”	  	the leasehold property demised by the Lease;
		
	“Relief”	  	has the meaning given to it in part 1 of schedule 3;
		
	“Seller’s Accountants”	  	the Seller’s accountants for the time being;
		
	“Seller’s Solicitors”	  	Clintons of 55 Drury Lane, London WC2B 5RZ;
		
	“Shares”	  	all the issued shares in the capital of the Company;
		
	“Tax Authority”	  	has the meaning given to it in part 1 of schedule 3;
		
	“Tax Claim”	  	a claim under the Tax Covenant or for any breach of any of the Tax Warranties;
		
	“Tax Covenant”	  	the tax covenants given in favour of the Buyer set out in part 3 of schedule 3;

  

 7 

			
		
	“Tax Warranties”	  	the warranties of the Seller relating to Tax given under clause 9.1 which are set out in part 2 of schedule 3;
		
	“Tax” or “Taxation”	  	has the meaning given to it in part 1 of schedule 3;
		
	“TCGA”	  	the Taxation of Chargeable Gains Act 1992;
		
	“VAT”	  	value added tax as provided for in VATA, and any tax imposed in substitution for it;
		
	“VATA”	  	the Value Added Tax Act 1994;
		
	“Warranties”	  	the warranties of the Seller given under clause 9.1 which are set out in schedule 2, and the Tax Warranties; and
		
	“Warranty Claim”	  	a claim for any breach of any of the Warranties other than a Tax Warranty.

  

	1.2	In this Agreement, unless the context requires otherwise: 

  

	 	1.2.1	any reference to the parties or a recital, clause or schedule is to the parties (and permitted assignees) or the relevant recital, clause or schedule of or to this Agreement and any
reference in a schedule to a paragraph is to a paragraph of the schedule or, where relevant, that part of the schedule; 

  

	 	1.2.2	the clause headings are included for convenience only and shall not affect the interpretation of this Agreement; 

  

	 	1.2.3	use of the singular includes the plural and vice versa; 

  

	 	1.2.4	use of any gender includes the other genders; 

  

	 	1.2.5	any reference to “persons” includes individuals, firms, partnerships, companies, corporations, associations, organisations, governments, states, foundations and
trusts (in each case whether or not having separate legal personality); 

  

	 	1.2.6	“financial year”, “parent undertaking” and “subsidiary undertaking” have the meanings given to them by sections 223 and 258
Companies Act 1985 respectively; 

  

	 	1.2.7	any reference to a statute, statutory provision or subordinate legislation (“legislation”) shall be construed as referring to that legislation as amended and in
force from time to time and to any legislation which re-enacts or consolidates (with or without modification) any such legislation; 

  

 8 

	 	1.2.8	any reference to a document being “in the agreed form” means a document in a form agreed by the parties before the signing of this Agreement and either entered into
on the date of this Agreement by the relevant parties or initialled by the parties or on their behalf, in the latter case with such amendments as they may subsequently agree; 

  

	 	1.2.9	any phrase introduced by the terms “including”, “include”, “in particular” or any similar expression shall be construed as illustrative and shall not
limit the sense of the words preceding those terms; and 

  

	 	1.2.10	any reference to an agreement includes any form of arrangement, whether or not in writing and whether or not legally binding. 

  

	1.3	The schedules and recitals form part of this Agreement and shall have effect as if set out in full in the body of this Agreement, and any reference to this Agreement includes the
schedules and recitals. 

  

	1.4	Any undertaking by a party not to do any act or thing includes an undertaking not to allow, cause or assist the doing of that act or thing and to exercise all rights of control over
the affairs of any other person which that party is able to exercise (directly or indirectly) in order to secure performance of that undertaking. 

  

	2.	AGREEMENT FOR SALE 

  

	2.1	At Completion the Seller shall sell and the Buyer shall buy the Shares free from all Encumbrances. The Shares shall be sold with all rights attaching to them at Completion or
subsequently, including the rights to receive all dividends and other distributions declared, paid or made at or after Completion. 

  

	2.2	The Seller covenants that it has the right to sell the Shares on the terms of this Agreement. 

  

	3.	CONSIDERATION 

  
 The purchase price for the Shares shall be the sum of £10,883,713 plus any sums payable by the Buyer and minus any sums payable to the Buyer in
accordance with clause 5. 
  

 9 

	4.	COMPLETION ACCOUNTS 

  

	4.1	The Buyer shall use its reasonable endeavours to ensure that a draft of the Completion Accounts is prepared as soon as possible after Completion and delivered to the Seller and the
Seller’s Accountants on or before the date falling 60 Business Days after Completion, together with the Buyer’s working papers and the Net Current Asset Statement signed by the Buyer. 

  

	4.2	The draft Completion Accounts and the calculation of the Net Current Asset Value set out in the Net Current Asset Statement shall be deemed agreed by the Seller on the date falling
20 Business Days after the date on which those documents are first delivered to the Seller and the Seller’s Accountants and shall (save in the case of fraud or manifest error) be final and binding on the parties for all purposes (and shall
respectively constitute the Completion Accounts and the calculation of the Net Current Asset Value for the purposes of this Agreement), unless during that period the Seller gives notice to the Buyer that she disagrees with the calculation of the Net
Current Asset Value set out in the Net Current Asset Statement. Any notice so given shall include reasonable details of the reasons for any disagreement and any suggested adjustment, together with reasonable supporting evidence for each adjustment,
including any relevant working papers. 

  

	4.3	If any notice is so served by the Seller during such 20 Business Day period, the Buyer and the Seller shall attempt in good faith to resolve any matters in dispute and agree a final
form of Completion Accounts and the calculation of the Net Current Asset Value on or before the date falling 10 Business Days after the date on which the Buyer receives the Seller’s notice. Each of the Buyer and the Seller shall to facilitate
such agreement cooperate and where relevant, instruct their respective accountants to cooperate with each other. The Completion Accounts and the calculation of the Net Current Asset Value so agreed by them shall (save in the case of fraud or
manifest error) be final and binding on the parties for all purposes (and shall respectively constitute the Completion Accounts and the calculation of the Net Current Asset Value for the purposes of this Agreement). In the absence of agreement
between the Buyer and the Seller within that time period (as the same may be extended by the written agreement of both parties), the matters in dispute shall be determined by the Independent Accountants and the Independent Accountants shall be
instructed to deliver a calculation of the amount of the Net Current Asset Value and revised Completion Accounts adjusted only to take account of the matters determined by them. As so revised, the Completion Accounts and the Net Current Asset Value
shall (save in the case of fraud or manifest error) then respectively constitute the Completion Accounts and the calculation of the Net Current Asset Value for the purposes of this Agreement. 

  

 10 

	4.4	Each party shall promptly provide to the other or the other’s accountants or professional advisers (and to the Independent Accountants) all such documents and information as
may reasonably be requested for the purpose of preparing or reviewing the Completion Accounts and the Net Current Asset Statement. The parties’ obligations under this clause shall, without limitation, extend to providing access to of all
working papers in their possession or under their control created in the course of the preparation and/or review of the Completion Accounts and/or Net Current Asset Statement, together (in the case of the Buyer) with extracts from the Company’s
accounting records to which the working papers relate or from which the working papers have drawn information, and access upon reasonable notice and during normal working hours to relevant personnel, and to relevant records and information within
the possession or under the control, of the relevant party. Pending determination or agreement of the Net Current Asset Value, the Buyer shall maintain the Company’s books and records of account in the United Kingdom. 

 

	5.	ADJUSTMENT TO THE CONSIDERATION 

  

	5.1	On the date falling 10 Business Days after the calculation of the Net Current Asset Value becomes final and binding on the parties in accordance with this Agreement:

  

	 	5.1.1	if the Net Current Asset Value is less than £1,238,133, either: 

  

	 	5.1.1.1	the Seller shall pay to the Buyer the amount of the shortfall; or 

  

	 	5.1.1.2	in default of payment as aforesaid, at the Buyer’s election by written notice to the Seller within a further five Business Days, the purchase price payable for the Shares shall
be reduced by payment to the Buyer in accordance with the Escrow Agreement of an amount equal to the shortfall, and in such circumstances within five Business Days of such election by the Buyer the Seller shall pay the amount of the shortfall into
the Escrow Account; or 

  

	 	5.1.2	if the Net Current Asset Value is greater than £1,238,133, the Buyer shall pay to the Seller an amount equal to the excess. 

  
 All payments pursuant to this clause shall be made by telegraphic transfer
of immediately available funds to the bank accounts specified in clause 12. 
  

	5.2	The agreement or determination of the Net Current Asset Value, to the extent not taking into account any matter then or subsequently giving rise to a Warranty Claim or a claim under
the Tax Covenant, shall not prevent the Buyer from asserting that claim or limit the damages recoverable, subject always to schedule 5. 

  

 11 

	6.	APPOINTMENT OF INDEPENDENT ACCOUNTANTS 

  

	6.1	Any matters which this Agreement provides are to be determined by the Independent Accountants may be referred for determination by either the Seller or the Buyer to:

  

	 	6.1.1	an independent firm of chartered accountants whose identity is agreed between the Seller and the Buyer and whose terms of engagement are agreed to and signed by the accountants, the
Seller and the Buyer; or 

  

	 	6.1.2	if no such firm is agreed or no such terms of engagement are signed on or before the date falling 20 Business Days after the date on which a firm is first proposed by either party
to the other for the purpose, such independent firm of chartered accountants on such terms of engagement as shall be specified on the application of either party by the President for the time being of the Institute of Chartered Accountants in
England and Wales (“President”). If either the Seller or the Buyer fails to sign the terms of engagement of the Independent Accountants specified by the President on or before the date falling five Business Days after the date on
which such specification is made, Independent Accountants shall be deemed to have been appointed and to have determined the matter or matters to be referred to the Independent Accountants under this clause in favour of the party who has signed the
terms of engagement. 

  

	6.2	The Independent Accountants: 

  

	 	6.2.1	shall act as experts and not as arbitrators; 

  

	 	6.2.2	shall decide on the procedure (subject to clause 6.2.3) and timetable to be followed in the determination (provided that, in any event, they shall give the Seller and the Buyer the
opportunity of making such representations as each may reasonably require); and 

  

	 	6.2.3	shall be required only to determine those matters that this Agreement provides should be determined by them (and not any additional or separate issues subsequently raised by the
parties) and deliver such determination and any calculation, statement or accounts required to be provided by them by this Agreement in writing to the parties on or before the date falling 20 Business Days after the date of the appointment of the
Independent Accountants. 

  

	6.3	In the absence of fraud or manifest error, the decision of the Independent Accountants and any determination and any calculation, statement or accounts required to be provided by
them by this Agreement shall be final and binding on the parties for all purposes. The fees and expenses of the Independent Accountants shall be paid by such party or parties as the Independent Accountants shall determine to be appropriate in their

  

 12 

 sole discretion, having regard to the relative merits of the arguments of each of the parties. In default
of a determination by the Independent Accountants as to fees and expenses, they shall be borne as to 50 per cent by the Buyer and 50 per cent by the Seller. Any charges levied by the President in connection with the specification of the
Independent Accountants shall be borne as to 50 per cent by the Buyer and 50 per cent by the Seller. 
  

	6.4	The Seller and the Buyer shall each use all reasonable endeavours to co-operate with the Independent Accountants and to enable them to reach their determination within the time
period set by this Agreement including by co-operating with any timetable and procedure set by the Independent Accountants. In particular, the Seller and the Buyer shall each provide each other and the Independent Accountants with or with access to
all such documents and information as are in their possession or under their control, and access to all relevant personnel (including requesting their respective accountants make themselves available) upon reasonable prior notice and during normal
working hours, as may from time to time be requested by the Independent Accountants in their absolute discretion save that the Buyer and the Seller and their respective accountants shall not be obliged to disclose any documents or information to the
extent containing advice from such accountants. In the event that either the Seller or the Buyer does not co-operate with or grant access to or supply any document or information so requested within any time specified by the Independent Accountants,
the Independent Accountants shall be entitled to make such assumptions for the purposes of making their determination (including any determination as to costs) as a result of that failure to co-operate, grant access or supply such document or
information as they shall in their absolute discretion determine to be appropriate. 

  

	7.	COMPLETION 

  

	7.1	Completion shall take place at the offices of the Buyer’s Solicitors immediately after this Agreement is executed. 

  

	7.2	At Completion, the Seller shall deliver or make available to the Buyer: 

  

	 	7.2.1	a transfer of the Shares in favour of the Buyer, or any nominee specified by the Buyer for the purpose, duly executed by the Seller or any other registered holder;

  

	 	7.2.2	the share certificates representing the Shares or an indemnity in the agreed form for any missing share certificates; 

  

	 	7.2.3	the Disclosure Letter signed by the Seller; 

  

	 	7.2.4	the Escrow Agreement duly executed by the Seller and the Seller’s Solicitors; 

  

 13 

	 	7.2.5	the resignation from their respective offices of the sole director and the secretary of the Company in the agreed form, duly executed as a deed; 

  

	 	7.2.6	statements for each bank account of the Company at the close of business on the last Business Day preceding Completion, together with a complete and accurate reconciliation of those
statements to cash book balances showing a positive balance of at least £883,713 in sterling, and the cheque books and bank mandates in respect of those accounts; 

  

	 	7.2.7	power of attorney in favour of the Buyer in the agreed form duly executed by the Seller as a deed; 

  

	 	7.2.8	the seal (if any), statutory registers, certificate of incorporation (and any certificate of incorporation on change of name), minute books and share certificate books of the
Company, complete and up-to-date up to but not including Completion; 

  

	 	7.2.9	the Production Agreement duly executed by the Seller and Applestock; 

  

	 	7.2.10	a licence in the agreed form relating to the Property duly executed by Applestock and the Company; and 

  

	 	7.2.11	a secondment agreement in the agreed form between the Company and Applestock relating to Tracy Fowler duly executed by Applestock and the Company. 

  

	7.3	The Seller shall ensure that a board meeting of the Company is held at Completion at which: 

  

	 	7.3.1	the people nominated by the Buyer are appointed as the directors and secretary (as the case may be) of the Company with immediate effect; 

  

	 	7.3.2	the resignations referred to in clause 7.2.5 are accepted with effect from the close of the meeting; 

  

	 	7.3.3	the licence referred to in clause 7.2.10 and the secondment agreement referred to in clause 7.2.11 are approved for execution; 

  

	 	7.3.4	the transfer referred to in clause 7.2.1 is (if appropriate, subject only to its being duly stamped) approved for registration; 

  

	 	7.3.5	the Production Agreement is approved and executed by the Company; and 

  

 14 

	 	7.3.6	each existing bank mandate of the Company is cancelled and a new bank mandate appointing the Buyer’s chosen signatories submitted to the relevant bank.

  

	7.4	At Completion, the Buyer shall deliver to the Seller: 

  

	 	7.4.1	a counterpart Disclosure Letter duly signed by way of acknowledgement of receipt by the Buyer; 

  

	 	7.4.2	a counterpart Escrow Agreement duly executed by the Buyer and the Buyer’s Solicitors; 

  

	 	7.4.3	the Production Agreement duly executed by the Company; 

  

	 	7.4.4	a certified copy of the minutes of a meeting of the directors of the Buyer in the agreed form resolving that the Buyer should enter into this Agreement, and each other document to
be signed by it at Completion, and authorising the execution of those documents by each person signing on behalf of the Buyer; 

  
 and shall pay the sum of £9,883,713 to the Seller in accordance with clause 12 and pay the sum of £1,000,000 into the Escrow Account.

  

	8.	GUARANTEES AND INDEBTEDNESS 

  

	8.1	The Seller shall use all reasonable endeavours to ensure that at or before Completion the Company is released from any guarantees, security interests and indemnities given by it in
favour of the Seller or any Associate of the Seller, and pending that release, the Seller shall indemnify the Buyer and the Company on demand against all Losses arising from or in connection with those guarantees, security interests and indemnities.

  

	8.2	The Buyer shall use all reasonable endeavours to ensure that promptly after Completion the Seller is released from all subsisting guarantees, security interests and indemnities
given by her in relation to the obligations of the Company and of which full details are contained in the Disclosure Letter with express reference to this clause, and pending that release the Buyer shall indemnify the Seller on demand against all
Losses arising on or after Completion from or in connection with those guarantees, security interests and indemnities. 

  

	8.3	The Seller shall ensure that at or before Completion all monies owing by the Seller or any Associate of the Seller to the Company are paid in full, whether or not then due for
payment and all monies owing by the Company to the Seller or any Associate of the Seller, are paid in full, whether or not then due for payment. 

  

 15 

	8.4	The Seller shall ensure that at Completion there are no amounts owing by the Company to the Seller or any Associate of the Seller and the Seller shall indemnify the Buyer and the
Company on demand against all Losses arising from or in connection with any such amounts which remain owing on or after Completion. 

  

	9.	WARRANTIES AND INDEMNITIES 

  

	9.1	The Seller warrants to the Buyer that except as disclosed in the Disclosure Letter, each of the Warranties is accurate and not misleading at the date of this Agreement.

  

	9.2	A matter shall be regarded as disclosed in the Disclosure Letter only to the extent that accurate information about that matter is contained in the Disclosure Letter in sufficient
detail to identify the nature and scope of that matter and the Warranties which are to be regarded as qualified by it. 

  

	9.3	Each of the Warranties is separate and is to be construed independently of the other Warranties and any other provisions of this Agreement. 

  

	9.4	The Seller acknowledges that the Buyer is entering into this Agreement in reliance on the Warranties. 

  

	9.5	No matter within the imputed or constructive knowledge of the Buyer or the actual, imputed or constructive knowledge of the Buyer’s agents or advisers on the date of this
Agreement, other than a matter disclosed in accordance with clause 9.2, shall be regarded as qualifying the Warranties or as being disclosed in the Disclosure Letter, so that neither the Buyer’s right to make a Warranty Claim or a claim for
breach of any of the Tax Warranties nor the quantum of any such claim made shall be affected by any such actual, imputed or constructive knowledge. This clause shall apply whether such actual, imputed or constructive knowledge on the date of this
Agreement was obtained as a result of an investigation made by or on behalf of the Buyer into the Company, by virtue of any matter contained or referred to in any draft version of the Disclosure Letter, or in any other way. The Buyer warrants that
it is not aware of any matter which would entitle it to make a Warranty Claim or claim for breach of any of the Tax Warranties. 

  

	9.6	The Seller unconditionally and irrevocably waives any rights it may have against (and undertakes not to make any claims against or pursue any action to join in as a third party or
seek a contribution or indemnity from) the Company, or any director or employee of the Company on whom the Seller has or may have relied, in connection with preparing the Disclosure Letter or agreeing to any terms of this Agreement.

  

	9.7	Without prejudice to any other remedy available to the Buyer and without limiting the right of the Buyer to claim damages on any basis, the Seller acknowledges and agrees with the
Buyer that if there is a breach of any of the Warranties or if the Buyer and/or the 

  

 16 

 Company have a right to be indemnified under clause 9.10, the Buyer shall, subject to proving liability,
be entitled to claim and recover from the Seller an amount equal to any liability or increase in any liability, lost profit, increased loss and/or diminution or shortfall in value of any asset of the Company arising out of the breach of Warranty or
claim under clause 9.10, that amount to be calculated on a going concern basis. 
  

	9.8	Schedule 5 (Limitations on Seller’s liability) shall apply to limit or exclude, in accordance with its terms, any liability which the Seller might have in respect of any
Warranty Claim (and, as specifically provided therein, to any claim under the Tax Covenant or for breach of the Tax Warranties) and part 4 of schedule 3 (Miscellaneous, including exclusions and limitations, conduct of claims and payments) shall
apply to limit or exclude, in accordance with its terms, any liability which the Seller might have in respect of any Tax Claim, provided that no provision of that schedule shall apply to any such liability arising out of or in connection with any
negligent (in the case of a Tax Claim) or fraudulent or wilful act or omission by or on behalf of the Seller. 

  

	9.9	Notwithstanding any other provision of this clause 9, nothing in the Disclosure Letter or schedule 5 shall qualify or limit the scope of the Warranties referred to in paragraphs 1.1
to 1.8 (inclusive), 9.4, 10.1, 10.2 and 11 of part 1 of schedule 2 save that in relation to the Warranty referred to in paragraph 11 of part 1 of schedule 2 only, the provisions of paragraph 1.3 of schedule 5 shall apply. 

 

	9.10	The Seller shall indemnify the Buyer and the Company on demand against all Losses incurred by the Buyer arising from or in connection with the claim made by Tom Brakefield against
the Company relating to the alleged loss by the Company of transparencies owned by Mr Brakefield. 

  

	9.11	Any amount paid by or on behalf of the Seller in respect of a breach of the Warranties and/or under a claim made under the Tax Covenant or clause 9.10 shall be deemed to reduce the
purchase price payable for the Shares by, and be a repayment of, that amount. 

  

	9.12	Any statement which refers to the awareness, knowledge or belief of the Seller or analogous expression shall be deemed to include an additional statement that it has been made after
careful and appropriate enquiry of Mark Butler, Tracy Fowler, Ian Allenden and Lisa Harris and all such other people of whom the Seller may reasonably be expected to make enquiries given the subject matter of the relevant provision and the
awareness, knowledge or belief of the Seller shall be deemed to include that of each such person. The Seller warrants to the Buyer that the four individuals listed above are the only employees of the Company of whom it would have been reasonable and
appropriate for the Seller to have asked to review the Warranties. 

  

 17 

	9.13	The Buyer shall not be entitled to rescind this Agreement after Completion in any circumstances. 

  

	9.14	Each party confirms that, it has not relied on any representation or warranty or undertaking which is not contained in this Agreement. 

  

	9.15	In the event that a third party makes a claim against the Company which gives rise to a Warranty Claim, the Buyer agrees that it shall not and shall ensure that no member of the
Buyer’s Group shall admit liability in respect of or compromise or settle any such third party claim without the prior written consent of the Seller, (such consent not to be unreasonably withheld or delayed) save where the Buyer reasonably
believes that the failure to compromise or settle liability in the manner proposed by the Seller would have or would be likely to have a material and adverse impact on the business of the Company. 

  

	9.16	Save as is provided in clause 9.15 if there is any dispute between the Seller and the Buyer as to whether liability in respect of any third party claim should be admitted or whether
that claim should be settled or compromised, liability shall not be admitted, and that claim shall not be settled or compromised, other than in accordance with the provisions of this paragraph. Any such dispute shall be referred to leading counsel
agreed between the Seller and the Buyer or, in default of agreement, on or before the date falling seven days after the date on which an individual is first proposed for the purpose by either the Seller or the Buyer, by the President for the time
being of the Law Society of England and Wales on the application of either the Seller or the Buyer. Any individual to whom a dispute is so referred shall be instructed in writing to give a written opinion, as soon as is reasonably practicable, as to
which of the courses of conduct proposed by the Buyer and by the Seller is most likely to result in the third party claim being agreed, settled or compromised at the least cost to the Buyer. The decision of counsel (who shall act as expert and not
as arbitrator) shall be final and binding on the Buyer and the Seller for all purposes. Counsel’s fees and expenses shall be borne by the Seller and the Buyer as counsel may determine in his sole discretion or, if no such determination is made
by the Seller and the Buyer in equal shares. The parties shall then implement counsel’s decision as soon as is reasonably practicable. 

  

	9.17	Nothing in this Agreement restricts or limits the Buyer’s general obligation at law to mitigate any loss or damage which it may incur in consequence of any Warranty Claim or
claim for breach of any of the Tax Warranties. 

  

	9.18	The Buyer shall and shall ensure that each member of the Buyer’s Group shall, preserve all documents, records, correspondence, accounts, and other information whatsoever
relevant to a matter which has given rise to a Warranty Claim or a Tax Claim for the period specified in paragraph 2 of schedule 5 and paragraph 7.3 of part 4 of schedule 3 respectively. 

  

 18 

	9.19	The Seller shall not be liable in respect of a Warranty Claim to the extent that the Seller has (without cost to the Buyer or the Company) remedied the relevant breach or
compensated the Buyer from any loss suffered by it in respect of such claim. 

  

	9.20	The parties agree that save where specifically provided otherwise in this Agreement, if any sum becomes payable by the Seller to the Buyer pursuant to this Agreement, the Buyer
agrees that during the period of 18 months following the date of this Agreement it shall to the extent permitted by the Escrow Agreement and to the extent that Escrow Claims exceeding the Escrow Amount have not already been made, make an Escrow
Claim in relation to such sum prior to making any other claim for recovery of such sum from the Seller. 

  

	10.	TAX 

  
 The provisions of part 3 of schedule 3 shall have effect on Completion. 
  

	11.	PROTECTION OF THE INTERESTS OF THE BUYER 

  

	 	11.1	The Seller acknowledges that the Buyer is buying the Shares in accordance with the terms of this Agreement and that the Buyer is therefore entitled to protect the goodwill of the
Company. Accordingly, the Seller agrees that she shall not, directly or indirectly, alone or jointly with any other person, and whether as shareholder, partner, director, principal, consultant or agent or in any other capacity:

  

	 	11.1.1	for the Relevant Period, carry on or be engaged, interested or concerned in, or assist any business which within the Restricted Territory competes with any business carried on by
the Company at Completion, including without limitation, acquiring, selling or licensing any rights in any photographic images in the Restricted Territory; 

  

	 	11.1.2	for the Relevant Period, and to the detriment of any business of the Company carried on as at Completion deal or do business with any Distributor; 

  

	 	11.1.3	for the Relevant Period, and to the detriment of any business of the Company carried on as at Completion, deal or do business with any Prospective Distributor;

  

	 	11.1.4	for the Relevant Period, and to the detriment of any business of the Company carried on as at Completion, solicit business from any Distributor; 

  

 19 

	 	11.1.5	for the Relevant Period, and to the detriment of any business of the Company carried on as at Completion, solicit business from any Prospective Distributor;

  

	 	11.1.6	for the Relevant Period, and to the detriment of any business of the Company carried on at Completion, induce or endeavour to induce any Supplier to cease to supply or to restrict
or adversely to vary the terms of supply to that business or to breach any provision of any agreement that Supplier might have with the Company; 

  

	 	11.1.7	for the Relevant Period, and to the detriment of any business of the Company carried on as at Completion, employ or engage the services of any Senior Employee;

  

	 	11.1.8	for the Relevant Period, and to the detriment of any business of the Company carried on as at Completion, induce, or endeavour to induce, any Senior Employee to leave his position,
whether or not that person would commit a breach of his contract by so leaving. 

  

	11.2	The provisions of clause 11.1 shall be limited as follows: 

  

	 	11.2.1	nothing in clause 11.1 shall prohibit the Seller from holding any interest in any securities listed or dealt in on any recognised investment exchange (as defined in section 285 of
the Financial Services and Markets Act 2000) if the Seller and any Associate of the Seller are together interested in securities which amount to less than three per cent of the issued securities of that class and which in all circumstances carry
less than three per cent of the voting rights (if any) attaching to the issued securities of that class, and if neither the Seller nor any Associate of the Seller is involved in the management of the business of the issuer of the securities or any
subsidiary undertaking of that issuer except by virtue of the exercise of any voting rights attaching to the securities; 

  

	 	11.2.2	nothing in clause 11.1.1 shall prevent Applestock and the Seller from complying with their respective obligations and exercising their respective rights under clause 2.3 of the
Production Agreement; 

  

	 	11.2.3	nothing in clause 11.1.6 shall prevent Applestock from sub-contracting the supply of any photographic images required to be provided by Applestock under the Production Agreement to
any Supplier, provided that Supplier does not thereby breach the terms of any contract with the Company; 

  

	 	11.2.4	nothing in clause 11.1.6 shall prevent Applestock from acquiring or licensing photographic images from any Supplier provided that such images are not exploited in any way by
Applestock during the Relevant Period and the relevant Supplier does not commit a breach of any contract that Supplier might have with the Company by so selling or licensing such images to Applestock; and 

  

 20 

	 	11.2.5	nothing in clause 11.1.1 shall prevent Applestock from undertaking Commissions provided that such Commissions (i) do not consist of providing stock images (ii) are not
undertaken for any competitor of the Buyer or any member of the Buyer’s Group; (iii) are not undertaken for any customer of the Buyer or the Buyer’s Group following a solicitation of the same by Applestock; and (iv) do not
conflict with Applestock’s obligations to the Company under the Production Agreement. 

  

	11.3	The Seller shall not disclose or use any confidential information or trade secrets relating to the Company or any of its customers or suppliers and shall use all reasonable
endeavours to prevent the publication or disclosure of any such confidential information or trade secrets, as the case may be. This clause shall not prohibit disclosure of: 

  

	 	11.3.1	confidential information or trade secrets under a legal obligation involuntarily incurred or if required by the law of any relevant jurisdiction or by any competent regulatory or
governmental body or securities exchange in any relevant jurisdiction, provided that in any such case, the Seller shall take all such steps as may be reasonable and practicable in the circumstances to consult with the Buyer before the relevant
disclosure is made and shall take into account the Buyer’s reasonable comments; 

  

	 	11.3.2	any confidential information or trade secret which is or becomes part of the public domain without breach of this clause or clause 11.5; or 

  

	 	11.3.3	confidential information or trade secrets disclosed to any professional advisers of the Seller. 

  

	11.4	The Seller shall not at any time after the Completion Date use in any manner in the course of any business, or (so far as within its power) permit or encourage to be so used, other
than by the Company, the names Bananastock, or any other trade or business name or any mark, sign or logo used by the Company or any confusingly similar name, mark, sign or logo, or present herself or permit herself to be presented as in any way
connected with the Company or interested in the Shares save by virtue of the Production Agreement. 

  

	11.5	The Seller shall ensure that none of her Associates from time to time takes or omits to take any action which, if taken or omitted by the Seller, would constitute a breach of
clauses 11.1, 11.3 or 11.4. 

  

 21 

	11.6	Since the Seller has confidential information relating to the Company and a detailed awareness of the Company’s client connections, and since the purchase price payable for the
Shares has been calculated on the basis that the Seller would assume the obligations set out in this clause 11, the parties acknowledge that each of those obligations is reasonable as to subject matter, area and duration and is necessary to protect
the Buyer’s legitimate interest in the goodwill of the Company. 

  

	11.7	Without prejudice to any other remedy which may be available to the Buyer, the parties agree that the Buyer shall be entitled to seek injunctive or other equitable relief in
relation to any breach of clauses 11.1, 11.3, 11.4 and 11.5, it being acknowledged that an award of damages might not be an adequate remedy in the event of such a breach. 

  

	11.8	While the restrictions in this clause 11 are considered by the parties to be reasonable in all the circumstances it is agreed that if any provision of this clause 11 is found by any
court of competent jurisdiction to go beyond what is reasonable in all the circumstances for the protection of the goodwill of the Company but would be adjudged reasonable if any part of the wording of the provision were deleted, restricted or
limited in a particular manner, the provision in question shall apply with such deletions, restrictions or limitations as may be necessary to make it valid. 

  

	11.9	Each of the Seller and Buyer acknowledges that she or it (as the case may be) has entered into this Agreement on an arm’s length basis and that she or it (as the case may be)
has taken independent legal advice in so doing. 

  

	11.10	Each of the obligations assumed by the Seller in this clause 11 is separate and severable and shall be construed and be enforceable independently of the others, and is assumed
without prejudice to any other obligation of the Seller implied at law or in equity. 

  

	11.11	In this clause 11: 

  

	 	11.11.1	“Commissions” a special request by a third party to produce specific images for the third party’s use in advertising or promotion but not for redistribution
and not for the production of stock images; 

  

	 	11.11.2	“Distributor” means any person who was a distributor for the Company during the period of 12 months ending on the Completion Date; 

  

	 	11.11.3	“Prospective Distributor” means any person who was at any time during the period of 12 months ending on the Completion Date negotiating with the Seller and
reasonably likely to become a distributor for the Company; 

  

	 	11.11.4	“Relevant Period” the period of two years following the date of Completion or, if shorter, the period beginning on Completion and ending on the date (if any)

  

 22 

 on which Applestock terminates the Production Agreement under clauses 12.3.1 and 12.3.2 of the
Production Agreement in accordance with its terms by reason of the Company’s material and unremedied breach of such agreement or the Company terminates the Production Agreement in breach of its terms; 
  

	 	11.11.5	“Restricted Territory” all territories in which the Company has sold or licensed or offered for sale or licence, photographic images as at the Completion Date and
any other territory worldwide; 

  

	 	11.11.6	“Senior Employee” means Mark Butler; and 

  

	 	11.11.7	“Supplier” means any supplier of photographic images to the Company during the period of 12 months ending on the Completion Date. 

  

	12.	PAYMENTS AND INTEREST 

  

	12.1	Payments to be made to the Seller under this Agreement shall be made in pounds sterling by telegraphic transfer of immediately available funds to the following account of the
Seller: 

  

			
	Bank:	  	[Omitted and filed separately with the Commission]***
		
	Sort code:	  	[Omitted and filed separately with the Commission]***
		
	Account name:	  	[Omitted and filed separately with the Commission]***
		
	Account number:	  	[Omitted and filed separately with the Commission]***

  
 or to any other
account of which the Seller gives the Buyer at least three Business Days’ notice from time to time. 
  

	12.2	Payments to be made to the Buyer under this Agreement shall be made in pounds sterling by telegraphic transfer of immediately available funds to the following account of the Buyer:

  

			
	Bank:	  	[Omitted and filed separately with the Commission]***
		
	Sort code:	  	[Omitted and filed separately with the Commission]***
		
	Account name:	  	[Omitted and filed separately with the Commission]***
		
	Account number:	  	[Omitted and filed separately with the Commission]***
		
	SWIFT CODE:	  	[Omitted and filed separately with the Commission]***
		
	IBAN:	  	[Omitted and filed separately with the Commission]***

  
 or to any other
account of which the Buyer gives the Seller at least three Business Days’ notice from time to time. 
  

	***	Portions of the exhibit have been omitted and separately filed with the Commission. Confidential treatment has been requested for the omitted portions of the exhibit.

  

 23 

	12.3	Payments to be made into the Escrow Account, as defined in the Escrow Agreement, under this Agreement shall be made in pounds sterling by telegraphic transfer of immediately
available funds to the account opened pursuant to the Escrow Agreement and notified to the parties by the Buyer’s Solicitors and the Seller’s Solicitors or if such account has not then been opened, into the client account of the
Buyer’s Solicitors. 

  

	12.4	Payment of any sum to a party’s solicitors will discharge the obligations of the relevant party to pay the sum in question, and that party shall not be concerned to see the
application of the monies so paid. 

  

	12.5	Interest shall accrue on monies which are not paid when due under this Agreement from the due date for payment (or, if there is no due date for payment, from the date payment is
demanded) until the date of actual payment at the rate of two per cent above the base rate for the time being of Barclays Bank plc. Such interest shall accrue on a daily basis, both before and after judgment, and be compounded quarterly and be
payable on demand. 

  

	12.6	Each payment to be made by a party under this Agreement shall be made free and clear of all deductions, withholdings, counterclaims or set-off of any kind except for those required
by law. 

  

	12.7	In the event that: 

  

	 	12.7.1	any deduction or withholding is required by law to be made from any sum payable by one party to the other under this Agreement, the payer shall be obliged to pay such increased sum
as will, after the deduction or withholding has been made, leave the recipient with the same amount as it would have been entitled to receive in the absence of such requirement to make a deduction or withholding; and 

  

	 	12.7.2	any sum paid or payable to the Buyer under this Agreement (the “original sum”) is or will be chargeable to Tax, the Seller shall be obliged to pay such further or
increased sum or sums as will ensure that, after payment of the Tax, there shall be left an amount equal to the original sum and for these purposes a sum shall be regarded as chargeable to Tax in circumstances where it would have been chargeable to
Tax but for some Relief available to the Buyer. 

  

 24 

	13.	ASSIGNMENT 

  

	13.1	This Agreement shall be binding on and ensure for the benefit of the successors and permitted assignees of the parties. 

  

	13.2	Except as provided in clause 13.3, no party and no third party referred to in clauses 17.1 or 17.2 may assign or otherwise dispose of any rights under this Agreement, at law or in
equity, including by way of declaration of trust. Any purported assignment in breach of this clause shall be void and confer no rights on the purported assignee. 

  

	13.3	The Buyer may assign all or any of its rights under this Agreement to any member of the Buyer’s Group, provided that any such member of the Buyer’s Group shall reassign
those rights to the Buyer on ceasing to be a member of the Buyer’s Group. In the event of any such assignment, references to the Buyer (other than in this clause) shall be construed as references to the holder for the time being of the
Buyer’s rights under this Agreement. 

  

	14.	ANNOUNCEMENTS AND CONFIDENTIALITY 

  

	14.1	No party may make any press release or other public announcement about this Agreement or the transactions contemplated by it or disclose any of the terms of this Agreement except
with the consent of the other party. 

  

	14.2	Clause 14.1 shall not apply to any disclosure made by a party to an Associate or to its professional advisers or lenders, or to any announcement or disclosure required by the laws
of any relevant jurisdiction or by any competent regulatory or governmental body or securities exchange in any relevant jurisdiction provided that the disclosing party shall take all such steps as may be reasonable and practicable in the
circumstances to consult with the other party before the relevant disclosure is made. 

  

	14.3	Each party shall ensure that any Associate or professional adviser or lender to which it discloses information under clause 14.2 is made aware of the obligations of confidentiality
contained in this clause and complies with this clause as if binding on it directly. 

  

	15.	COSTS 

  
 Each party shall bear its own costs and expenses in connection with the preparation, negotiation, execution and performance of this Agreement and the
documents referred to in it. 
  

	16.	NOTICES 

  

	16.1	Any notice, consent or other communication given under this Agreement shall be in writing and in English, and signed by or on behalf of the party giving it, and shall be

  

 25 

 delivered by hand, or sent by prepaid recorded or special delivery post (or prepaid international
recorded airmail if sent internationally) or by fax as follows (and, for the avoidance of doubt, may not be given by email): 
  
 to the Buyer: 
  

			
	For the attention of:	  	Mitchell S. Eisenberg, Vice President & General Counsel
		
	Address:	  	Jupitermedia Corporation, 23 Old Kings Highway South, Darien, CT 06820
		
	Facsimile number:	  	001 203 655 5079

  
 with a copy (which
shall not constitute notice) by hand to Stephen Hermer at the Buyer’s Solicitors; and 
  
 to the Seller: 
  

			
	For the attention of:	  	Cathy Yeulet
		
	Address:	  	Henley House, Howe Road, Watlington, Oxfordshire OX49 5EL

  
 with a copy (which
shall not constitute notice) by hand to James Jones at the Seller’s Solicitors. 
  

	16.2	Either party may from time to time notify the other of any other person, address or fax number for the receipt of notices or copy notices. Any such change shall take effect five
Business Days after notice of the change is received or (if later) on the date (if any) specified in the notice as the date on which the change is to take place. 

  

	16.3	Any notice, consent or other communication given in accordance with clause 16.1 and received after 5.30 p.m. on a Business Day, or on any day which is not a Business Day, shall for
the purposes of this Agreement be regarded as received on the next Business Day. 

  

	16.4	The provisions of clause 16.1 shall not apply in relation to the service of process in any legal proceedings arising out of or in connection with this Agreement.

  

	17.	THIRD PARTY RIGHTS 

  

	17.1	The Company may rely upon and enforce the terms of clauses 8.1, 8.3 and 8.4 (guarantees and loan accounts), 9.6 and 9.10 (warranties), 11 (protection of the interests of the Buyer)
and the directors and employees of the Company may rely upon and enforce the terms of clause 9.6 (waiver of rights in relation to warranties). 

  

 26 

	17.2	Any assignee of the Buyer’s rights in accordance with clause 13.3 may rely upon and enforce the Warranties and undertakings given by the Seller in this Agreement.

  

	17.3	The rights referred to in clauses 17.1 and 17.2 may be enforced by the third parties referred to in those clauses only with the prior written consent of the Buyer.

  

	17.4	Notwithstanding any other provision of this Agreement, the Seller and the Buyer may by agreement in writing rescind or vary any of the provisions of this Agreement without the
consent of any third party, and accordingly section 2(1) of the Contracts (Rights of Third Parties) Act 1999 shall not apply. 

  

	17.5	Except as otherwise stated in this Agreement a person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to rely upon or
enforce any term of this Agreement. This clause shall not affect any right or remedy of a third party which exists or is available apart from that Act. 

  

	17.6	Without prejudice to section 5 of the Contracts (Rights of Third Parties) Act 1999, to the extent that any third party entitled to enforce rights under this clause 17 has recovered
from the Buyer a sum in relation to that third party’s loss in respect of its rights under this Agreement, the Seller shall not be entitled to recover any amount from the Buyer in respect of that loss. 

  

	18.	WAIVER 

  
 A failure to exercise or delay in exercising a right or remedy provided by this Agreement or by law does not constitute a waiver of that or any other
right or remedy. A waiver of a breach of any term of this Agreement shall not constitute a waiver of any other breach of this Agreement. 
  

	19.	CUMULATIVE RIGHTS 

  
 The rights and remedies provided by this Agreement are cumulative and (except as otherwise provided in this Agreement) are not exclusive of any rights or
remedies provided by law. 
  

	20.	FURTHER ASSURANCE 

  

	20.1	At or after Completion, the Seller shall at its own cost execute all such documents and do or cause to be done all such other things as the Buyer may from time to time require in
order to vest in the Buyer legal title to and the full benefit of the Shares and otherwise all such things as the Buyer may from time to time reasonably require, to give full effect to this Agreement. 

  

 27 

	20.2	Without limiting clause 20.1, the Seller: 

  

	 	20.2.1	shall promptly and in any event within 20 Business Days of the Buyer’s or the Company’s request for the same, provide details of the Know-How or shall procure that the
same is provided to the Buyer or the Company (as the case may be) and any and all disclosures of Know-How shall be delivered in such form and media as the Buyer may reasonably request and shall be in a form which can be understood by a person
reasonably skilled in the field relating to the business of the Company; and 

  

	 	20.2.2	hereby grants to the Company the full, unfettered, non-exclusive and royalty free right to use the Know-How, throughout the world, including the right to apply for patent or similar
protection or registration anywhere in the world in respect of all or any part of the Know-How, for such period as the Know-How remains confidential (other than as a result of breach of these terms by the Seller). The Seller shall not use (save to
the extent necessary for her continued conduct of business) or disclose, or permit any third party to use or disclose any of the Know-How, for any purpose, throughout the world for such period as the Know-how remains confidential other than as a
result of breach of these terms by the Seller. 

  

	21.	NO MERGER 

  
 The provisions of this Agreement shall remain in full force and effect notwithstanding Completion. 
  

	22.	COUNTERPARTS 

  
 This Agreement may be executed in any number of counterparts and by the parties to it on separate counterparts, each of which shall be an original, but
all of which together shall constitute one and the same instrument, and shall not be effective until each of the parties has executed at least one counterpart. 
  

	23.	ENTIRE AGREEMENT 

  
 This Agreement, and the documents referred to in it together constitute the entire agreement and understanding of the parties and supersede any previous
agreement between the parties relating to the subject matter of this Agreement, and shall not be effective until each of the parties has executed at least one counterpart. 
  

	24.	GOVERNING LAW AND JURISDICTION 

  

	24.1	This Agreement shall be governed by and construed in accordance with the law of England and Wales. Each party irrevocably submits to the exclusive jurisdiction of the courts of
England and Wales over any claim, dispute or matter arising under or in connection with this Agreement. 

  

 28 

	24.2	Each party irrevocably waives any objection which it may have now or later to proceedings being brought in the courts of England and Wales and any claim that proceedings have been
brought in an inconvenient forum. Each party further irrevocably agrees that a judgment in any proceedings brought in the courts of England and Wales shall be conclusive and binding upon each party and may be enforced in the courts of any other
jurisdiction. 

  

	24.3	Nothing in this Agreement shall affect the right to serve process in any manner permitted by law. 

  
 THIS AGREEMENT has been executed by or on behalf of the parties on the date at the top of page 1. 
  

 29 

 SCHEDULE 1 
  

Part 1: Details of the Company 
  

			
	Date and place of incorporation:	 	2 February 2001; England and Wales
		
	Registered number:	 	4152926
		
	Registered office:	 	1 Conduit Street, Mayfair, London W1S 2XA
		
	Share capital:	 	 
		
	 Authorised:
	 	£1,000 divided into 1,000 ordinary shares of £1 each
		
	 Issued:
	 	2 ordinary shares of £1 each
		
	Options/warrants:	 	None
		
	Director:	 	Catherine Sara Yeulet
		
	Secretary:	 	Portland Registrars Limited
		
	Shareholders:	 	Catherine Sara Yeulet – 2 ordinary shares
		
	Auditors:	 	N/A
		
	Accounting reference date:	 	31 December
		
	Charges:	 	None
		
	Tax residence:	 	United Kingdom

  

 30 

 Part 1: General 
  
 SCHEDULE 2 
  
 Warranties 
  
 Part 1: General 
  

	1.	SHARES AND OTHER SECURITIES OF THE COMPANY 

  

	1.1	The issued share capital set out in schedule 1 constitutes the entire issued share capital of the Company. 

  

	1.2	The shareholder of the Company named in schedule 1 is the legal and beneficial owner of all of the Shares. 

  

	1.3	The Company has no debenture or any other security in issue. 

  

	1.4	No person has the right or has claimed to have a right (whether exercisable now or at a future date and whether contingent or not) to subscribe for, or to convert any security into,
any shares, debentures or other securities of the Company, including pursuant to an option or warrant. 

  

	1.5	There is no Encumbrance over any issued or unissued shares in the capital of the Company, there is no subsisting agreement to create any such Encumbrance and no person has claimed
to be entitled to any such Encumbrance. 

  

	1.6	The Company has not at any time purchased its own shares or redeemed or forfeited any shares, or agreed to do so, or granted an option whereby it might become liable to do so.

  

	1.7	No share in the capital of the Company has been the subject of any transactions to which the provision of sections 238 (transactions at an undervalue), 239 (preferences), 339
(transactions at an undervalue), 340 (preferences) or 423 (transactions defrauding creditors) Insolvency Act 1986 may be still applicable. 

  

	1.8	No share in the capital of the Company has been allotted at a discount or otherwise than as fully paid. 

  

	2.	SHADOW DIRECTORS 

  
 No person who is not named in schedule 1 is a shadow director (within the meaning of section 741(2) Companies Act 1985) of the Company. 
  

	3.	SUBSIDIARIES AND BRANCHES 

  

	3.1	The Company has no interest in nor is it under a subsisting obligation to acquire any interest in any shares, debentures or other securities of any other body corporate.

  

 31 

 Part 1: General 
  

	3.2	The Company has no agency, branch or other place of business or permanent establishment outside the United Kingdom. 

  

	4.	COMMISSION 

  
 No person is entitled to receive from the Company any finder’s fee or brokerage or other commission in connection with the sale of the Shares to the
Buyer. 
  

	5.	BUSINESS CONTINUITY 

  
 The business of the Company as it is carried on at the date of this Agreement (but following completion of the Hive Across Agreement) does not require the
use of any assets owned or leased by the Seller (or any Associate of the Seller) or the provision of any services by the Seller (or Associate of the Seller) other than those services the subject of the Production Agreement. 
  

	6.	ARTICLES OF ASSOCIATION 

  
 The copy of the articles of association of the Company annexed to the Disclosure Letter has embodied in it or annexed to it a copy of all resolutions or
agreements required by the Companies Act 1985 to be so embodied or annexed. 
  

	7.	SELLER’S OTHER INTERESTS 

  

	7.1	Save for the compliance by the Seller and Applestock with their obligations under the Production Agreement, neither the Seller nor any Associate of the Seller has any interest,
directly or indirectly, in any business which is, or is likely to be, competitive with the business of the Company. 

  

	7.2	In relation to the business carried on by the Seller using the name “Stockbroker”: 

  

	 	7.2.1	such business was carried on by the Seller prior to the incorporation of the Company; 

  

	 	7.2.2	no new contracts with any photographer or distributor have been entered into since the date of incorporation of the Company; 

  

	 	7.2.3	save for royalties paid by distributors to the Seller under contracts entered into prior to the date of incorporation of the Company, and the payment of commissions by the Seller to
photographers based on such royalty payments, the business of Stockbroker has not been active and has otherwise been dormant since the date of incorporation of the Company; 

  

 32 

 Part 1: General 
  

	 	7.2.4	no sales turnover or commission payments or other assets or liabilities of the Stockbroker business have been included within the financial information of the Company made available
to the Buyer prior to the date of this Agreement including, without limitation, the Accounts and the Management Accounts. 

  

	7.3	Notwithstanding the notes to the Accounts, the business and assets of Stockbroker have not been acquired by the Company and the Company has not acquired any assets or services from
the Seller relating to the Stockbroker business. 

  

	8.	MATERIAL INFORMATION 

  

	8.1	The information set out in the recitals and schedule 1 is complete and accurate. 

  

	8.2	Each statement of opinion or belief which is attributed in the Disclosure Letter to the Seller is honestly held by the Seller and was made after careful and appropriate enquiry.

  

	8.3	Each document annexed to the Disclosure Letter is a materially complete and accurate copy of the original (where available) and so far as the Seller is aware and other than as set
out in the Disclosure Letter, and no such document has been amended (orally or in writing) or superseded. 

  

	9.	INSOLVENCY 

  

	9.1	In this Part 1, “Insolvency Proceedings” means any formal insolvency proceedings, whether in or out of court, including proceedings or steps leading to any form of
bankruptcy, liquidation, administration, receivership, arrangement or scheme with creditors, moratorium, stay or limitation of creditors’ rights, interim or provisional supervision by a court or court appointee, winding-up or striking-off, or
any distress, execution or other process levied or any event analogous to any such events in any jurisdiction outside England and Wales. 

  

	9.2	The Company is able to pay its debts as they fall due and has not stopped payment of its debts. 

  

	9.3	The value of the assets of the Company exceeds the amount of the Company’s liabilities, taking into account contingent and prospective liabilities. 

  

	9.4	The Seller has not taken steps to commence any Insolvency Proceedings and the Seller has not received notice that any, and so far as the Seller is aware, no other person has taken
any steps to commence any Insolvency Proceedings in relation to the Company or (if applicable) any part of its assets or undertaking. 

  

 33 

 Part 1: General 
  

	9.5	So far as the Seller is aware there are no circumstances which entitle or may entitle any person to commence any Insolvency Proceedings in relation to the Company or (if applicable)
any part of its assets or undertaking. 

  

	10.	AUTHORITY AND CAPACITY OF THE SELLER 

  

	10.1	The Seller is: 

  

	 	10.1.1	over 18 years of age; and 

  

	 	10.1.2	not suffering from any disability under the Mental Health Act 1983 at the date of this Agreement. 

  

	10.2	No petition for bankruptcy has been presented, no statutory demand has been served and no bankruptcy order has been made in respect of the Seller, nor has any voluntary arrangement
or compromise been proposed with the Seller’s creditors. 

  

	10.3	The entering into and performance by the Seller of her obligations under this Agreement and all agreements to be entered into by the Seller pursuant to this Agreement and the
transactions contemplated thereunder do not require the consent of any third party. 

  

	11.	ASSETS 

  
 The operation of the Business (as defined in the Hive Across Agreement and for the avoidance of doubt excluding the Production Business as also defined in
the Hive Across Agreement) does not require and is not reliant on the use by the Company of any of the Assets (as defined in the Hive Across Agreement). 
  

 34 

 Part 2: Accounts, Financial, Banking and Current Trading 
  
 Part 2: Accounts, Financial, Banking and Current Trading 
  

	1.	THE ACCOUNTS 

  

	1.1	The Accounts were prepared under the historical cost convention and in accordance with applicable Statements of Standard Accounting Practice, Financial Reporting Standards,
statements from the Urgent Issues Task Force, other generally accepted accounting practices in the United Kingdom and the Companies Act 1985. 

  

	1.2	The Accounts give a true and fair view of the state of affairs of the Company as at the end of each financial year to which they relate and of its profit or loss for the period
ended on that date. 

  

	1.3	Except as noted in the Accounts, the profits of the Company disclosed in the Accounts were not affected by any extraordinary or exceptional items or any other unusual or
non-recurring items. 

  

	1.4	The Accounts have been prepared applying accounting policies consistently as from one financial period to the next. 

  

	1.5	At the Accounts Date the Company had no liability (whether actual, contingent, unquantified or disputed) or outstanding capital commitment which was not disclosed, provided for or
noted in the annual accounts of the Company for the financial year ended on the Accounts Date to the extent required to be so disclosed, provided for or noted in accordance with generally accepted accounting practices in the United Kingdom.

  

	2.	ACCOUNTING RECORDS 

  
 The Company’s accounting records comply with the requirements of section 221 Companies Act 1985. 
  

	3.	ACCOUNTING REFERENCE DATE 

  
 The Company has not at any time had any accounting reference date (within the meaning of section 224 Companies Act 1985) other than the date set out in
schedule 1. 
  

	4.	FINANCIAL REPORTING PROCEDURES 

  
 The Company has in place procedures which provide a reasonable basis for its directors to make proper judgements as to its financial position and
procedures. 
  

 35 

 Part 2: Accounts, Financial, Banking and Current Trading 
  

	5.	MANAGEMENT ACCOUNTS 

  
 The Management Accounts: 
  

	5.1	have been prepared in good faith and with due care, using accounting policies and bases consistent with those used in preparing the Accounts; 

  

	5.2	fairly represent the state of affairs of the Company as at the end of the period to which they relate; and 

  

	5.3	are not misleading. 

  

	6.	AUDIT EXEMPTION 

  

	6.1	The Company is not required to appoint auditors or to audit its accounts under the provisions of the Companies Act 1985. 

  

	6.2	The Company is entitled to produce abbreviated accounts in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies.

  

	7.	DIVIDENDS AND DISTRIBUTIONS 

  
 All dividends or distributions declared, made or paid by the Company since its incorporation have been declared, made or paid in accordance with its
articles of association and the Companies Act 1985. 
  

	8.	DEBTORS 

  

	8.1	There are no debts owing to the Company (whether or not due for payment) other than trade debts incurred in the ordinary and proper course of business. 

  

	8.2	Annexed to the Disclosure Letter is a complete and accurate list of the trade debtors of the Company unpaid at 30 September 2005. 

  

	8.3	The trade debtors of the Company will realise, in the ordinary course of collection, their nominal amounts (plus any accrued interest) less any provision for trade debtors included
in the Accounts or disclosed in the Disclosure Letter. 

  

	8.4	None of the trade debtors of the Company is, or so far as the Seller is aware, will be, subject to any counterclaim, deduction or set off. 

  

	8.5	The Company has not factored or discounted any debts owing to it, nor has it agreed to do so, nor has it engaged in any financing which is not disclosed in the Accounts.

  

 36 

 Part 2: Accounts, Financial, Banking and Current Trading 
  

	8.6	The Company has not made or agreed to make any loan or quasi-loan contrary to the Companies Act 1985. 

  

	9.	CREDITORS AND LIABILITIES 

  

	9.1	The Company has no creditors or any other liabilities (including contingent liabilities) other than as disclosed in the Accounts or incurred in the ordinary and proper course of
business since the Accounts Date. 

  

	9.2	No sum is owing by the Company to solicitors, accountants or other professional advisers, and no accrual ought properly be made by the Company in respect of any such sum.

  

	9.3	Annexed to the Disclosure Letter is a complete and accurate list of the trade creditors of the Company unpaid at 30 September 2005. 

  

	9.4	Wherever the Company has purchased goods or services under a contract to which the Late Payment of Commercial Debts (Interest) Act 1998 applies or applied, the Company has paid all
debts due under that contract before statutory interest would start to run under that act. 

  

	9.5	All outstanding indebtedness between the Seller or any Associate of the Seller and the Company (including any indebtedness to be repaid, released, novated or capitalised prior to
Completion) is listed in the Disclosure Letter. 

  

	10.	GOVERNMENT GRANTS 

  
 The Company has not applied for, or received, any grant, investment, subsidy or financial assistance from any government department or agency or any local
or other authority. 
  

	11.	BANK ACCOUNTS 

  

	11.1	The Disclosure Letter contains the account details of all current, deposit and foreign currency accounts of the Company. 

  

	11.2	There have been no payments into or out of any account referred to in the previous paragraph since the date of the last bank statement disclosed to the Buyer except for payments in
the ordinary and proper course of business. 

  

	12.	FACILITIES 

  

	12.1	The only financial facilities available to the Company are the Company’s American Express card, the foreign exchange facility, negotiations facility, Telepay facility and
charge card facility all under the Company’s Lloyds TSB Corporate Account (“Facilities”) details of which (including the limits on the Facilities and their terms and conditions) are included in the Disclosure Letter.

  

 37 

 Part 2: Accounts, Financial, Banking and Current Trading 
  

	12.2	The total amount borrowed by the Company does not exceed, and has never exceeded, any limitation on its borrowing contained in its articles of association or in the various
Facilities or other agreement binding on it. 

  

	12.3	The Company has not received notice nor is the Seller aware that the Company is in contravention of, or has not complied with the terms of any of the Facilities.

  

	12.4	None of the Facilities are dependent on the guarantee or indemnity of, or any security provided by, a person other than the Company. 

  

	13.	POSITION SINCE THE ACCOUNTS DATE 

  

	13.1	Since the Accounts Date, the Company has carried on its business in the ordinary and proper course, there has been no material adverse change in the financial or trading position or
prospects of the Company and there are no circumstances which might give rise to such a change, other than circumstances likely to affect generally the industry in which the Company operates. 

  

	13.2	Without limiting paragraph 13.1 of this part 2, since the Accounts Date: 

  

	 	13.2.1	there has been no material increase (which for the purposes of this Warranty means an increase in excess of 20 per cent) in operating expenses or a decrease in turnover by
comparison with the same period in the previous financial year; 

  

	 	13.2.2	no material client of, distributor for or supplier of the Company has ceased to deal, or has indicated an intention to cease to deal or deal on a smaller scale, with the Company, or
has changed or indicated that it wishes to change the terms on which it deals with the Company; 

  

	 	13.2.3	the Company has not disposed of or acquired, or agreed to dispose of or acquire, nor is it negotiating to dispose of or acquire, any business or any shares, debentures or other
securities in a body corporate, or any interest in any business, shares, debentures or securities, or any other asset or interest in any other asset other than in the ordinary and proper course of business; 

  

	 	13.2.4	the Company has not repaid all or part of any debt owed by it in advance of the due date for repayment, or agreed to do so, nor has it written off or released any debt owing to it;

  

 38 

 Part 2: Accounts, Financial, Banking and Current Trading 
  

	 	13.2.5	no agreement or transaction has been entered into by the Company except on arm’s length terms; 

  

	 	13.2.6	no management charge has been levied against the Company; 

  

	 	13.2.7	the Company has not entered into, or agreed to enter into, any capital commitments exceeding £20,000; 

  

	 	13.2.8	no dividend or distribution of profits or assets (including without limitation any distribution as defined in Part VI ICTA and extended by section 418 ICTA) has been or would be
treated as having been paid or made by the Company; 

  

	 	13.2.9	(other than in the ordinary course of business) the Company has not incurred any liability (including a contingent liability) having a monetary value in excess of £20,000 and

  

	 	13.2.10	no resolution of the shareholder of the Company has been passed. 

  

	14.	CLIENTS, DISTRIBUTORS AND SUPPLIERS 

  

	14.1	Annexed to the Disclosure Letter is a list of the 10 largest clients and 10 largest distributors (or groups of connected clients or distributors) by reference to the amount of
turnover of the Company contributed by such clients and distributors, and a list of the 10 largest suppliers (or groups of connected suppliers) by reference to the royalty payments made by the Company in each case during the last financial period
ended on the Accounts Date and during the period starting on the date after the Accounts Date and ending on the date of this Agreement. 

  

	14.2	So far as the Seller is aware, no client or distributor or supplier of the Company listed in accordance with paragraph 14.1 above is likely to cease to deal with the Company, or to
deal with the Company on a smaller scale or to change the terms on which it deals with the Company, after the date of this Agreement or as a result of the proposed acquisition of the Shares. 

  

 39 

 Part 3: Compliance and Litigation 
  
 Part 3: Compliance and Litigation 
  

	1.	CONDUCT OF BUSINESS 

  
 So far as the Seller is aware neither the Company nor any of its officers, agents or employees (during the course of their duties) has done or omitted to
do any act or thing which is in material contravention of any relevant legislation, order, regulation or similar instrument in any part of the world in relation to the Company and its business. 
  

	2.	LICENCES AND CONSENTS 

  

	2.1	The Company holds (and has at all relevant times held) all licences, authorisations and consents necessary to own and operate its assets and carry on its business in all
jurisdictions in which it now carries on business, and those licences, authorisations and consents are all valid and subsisting. Short particulars or copies of each such licence, authorisation and consent are set out in the Disclosure Letter.

  

	2.2	The Company is not in breach of any of the provisions of any such licence, authorisation or consent as is referred to in the previous paragraph, and so far as the Seller is aware
there are no circumstances which might give rise to any such licence, authorisation or consent being revoked, terminated, suspended or modified or which might prejudice its renewal. 

  

	3.	TRADE ASSOCIATIONS 

  
 The Company is not a member of any trade associations, institution or other unincorporated association. 
  

	4.	COMPETITION LAW 

  

	4.1	The Company is not nor has been a party to or concerned in any agreement, concerted practice or course of conduct which in whole or part infringes the competition or anti-trust law
of any country in which it has assets or carries on or intends to carry on business or where its activities may have an effect. 

  

	4.2	The Company: 

  

	 	4.2.1	has not given any undertaking or assurance (whether or not legally binding) to; or 

  

	 	4.2.2	is not subject to any order of or investigation by; or 

  

	 	4.2.3	has not received any process, notice, request for information or other communication (formal or informal) from, 

  

 40 

 Part 3: Compliance and Litigation 
  

	 	4.2.4	any court or the European Commission, the EFTA Surveillance Authority, the Office of Fair Trading, the Competition Commission, the Secretary of State for Trade and Industry or any
other competition or other authority having jurisdiction in competition or anti-trust matters under any competition or anti-trust legislation in any country in which the Company has assets or carries on or intends to carry on business or where its
activities may have an effect. 

  

	5.	UNDERTAKINGS, ETC. 

  
 The Company has not given any undertaking or assurance or received any request for information, statement of objections or other written communication
(formal or informal) from, any court or governmental or quasi-governmental administrative or regulatory body or agency, nor is it the subject of any court order, which in any case is still in force. 
  

	6.	DATA PROTECTION 

  

	6.1	In this paragraph 6 of part 3, “Personal Data” has the meaning given to it in the Data Protection Act 1998. 

  

	6.2	The Company has at all times materially complied with all relevant requirements of: 

  

	 	6.2.1	the Data Protection Act 1998; 

  

	 	6.2.2	the Privacy and Electronic Communications (EC Directive) Regulations 2003; 

  

	 	6.2.3	applicable codes of practice and/or guidance issued by or with the approval of the Information Commissioner. 

  

	6.3	The Company is duly registered as a data controller under the Data Protection Act 1998 (or deemed to be so registered by notification regulations made by virtue of section 19(3) of
that Act) for all purposes for which registration is required in respect of the processing of Personal Data by or on behalf of the Company and complete and accurate particulars of the relevant registrations/notifications are set out in the
Disclosure Letter. 

  

	6.4	So far as the Seller is aware, the Company has not received a notice (including, without limitation, any enforcement notice), letter, complaint, notification of a request for
assessment under section 42 Data Protection Act 1998 or other communication from the Information Commissioner or another person alleging breach by it of any of the statutes and/or codes of practice and/or guidance referred to in paragraphs 6.2.1 to
6.2.3 and, so far as the Seller is aware, there are no circumstances which might give rise to any such notice, letter, complaint, notification or communication being served, given or made. 

  

 41 

 Part 3: Compliance and Litigation 
  

	7.	DEFECTIVE PRODUCTS AND SERVICES 

  
 The Company has not sold or supplied any photographic images or rights relating to the same which did not comply with any warranty or representation
expressly or impliedly made by the Company or which are unlawful. 
  

	8.	BOOKS, RECORDS AND RETURNS 

  

	8.1	The register of members, minute books, other statutory books and registers and all other records required to be kept by the Company under the Companies Act 1985 or any other
legislation are in the possession and ownership or under the control of the Company, have been properly kept and contain materially complete and accurate details of the matters which should be dealt with in those books, registers and records.

  

	8.2	No claim has been made that any of the register of members or charges is incorrect or should be rectified. 

  

	8.3	All returns, particulars, resolutions and other documents required by the Companies Act 1985 or any other legislation to be given or delivered by the Company to the registrar of
companies or any other governmental, regulatory or other authority of competent jurisdiction have been correctly made up and duly given or delivered. 

  

	9.	LITIGATION 

  

	9.1	The Company is not engaged, nor has it during the period of two years ending on the date of this Agreement been engaged, in any litigation, arbitration, mediation, conciliation,
expert determination, adjudication or other dispute resolution process, whether as claimant or defendant or in any other capacity (except as claimant for the collection of debts in a sum not exceeding £5,000 in the case of any one debt).

  

	9.2	The Company has not received notice of, nor is the Seller aware that the Company is subject to any investigation, inquiry or enforcement proceedings or other process by any
governmental, administrative or regulatory body or agency nor is the Company in dispute with any such body or agency. 

  

	9.3	The Company has not received notice of, nor is the Seller aware that there are any dispute resolution processes, proceedings and other processes or disputes such as are referred to
in paragraphs 9.1 and 9.2 of this part 3 pending or threatened by or against the Company, and there are no circumstances which might give rise to any such dispute resolution processes, proceedings and other processes or disputes.

  

 42 

 Part 3: Compliance and Litigation 
  

	10.	E-COMMERCE 

  

	10.1	In relation to the Company’s website located at URL http://www.bananastock.co.uk, the Company has complied in all material respects with the general information requirements of
the Electronic Commerce (EC Directive) Regulations 2002 (the “E-Commerce Regulations”). 

  

	10.2	The Seller has not received notification of any order which has been made under the Stop Now Orders (EC Directive) Regulations 2001 and so far as the Seller is aware no proceedings
have been brought under section 35 of the Fair Trading Act 1973 by the Director General of Fair Trading at such time as that legislation was in force and no enforcement order has been made or any other steps taken or proceedings brought under
section 8 of the Enterprise Act 2002 by the Office of Fair Trading or any other person in relation to the Company’s website located at URL http://www.bananastock.co.uk. 

	 	

  

 43 

 Part 3: Compliance and Litigation 
  
 Part 4: Contracts 
  

	1.	MATERIAL CONTRACTS 

  

	1.1	A copy of each material agreement under which the Company enjoys rights or by which the Company is bound at the date of this Agreement is annexed to the Disclosure Letter (or, where
any such agreement is not in writing, complete and accurate details of that agreement is contained in the Disclosure Letter). 

  

	1.2	So far as the Seller is aware, each agreement referred to in paragraph 1.1 of this part 4 is valid, binding and enforceable in accordance with its terms, and no such agreement is
voidable by any party to it. 

  

	1.3	There has been no material breach by the Company or, so far as the Seller is aware by any counterparty, of any of the agreements referred to in paragraph 1.1 of this part 4, and the
Company has not received notice alleging any such breach. 

  

	1.4	The Company has not made any threat or claim of any default in relation to the agreements referred to in paragraph 1.1 of this part 4, nor has the Company received notice of, nor is
the Seller aware of any threat or claim of any default which has been made against the Company in relation to any of the agreements referred to in paragraph 1.1 of this part 4, and so far as the Seller is aware there are no circumstances which might
give rise to any such default or which might otherwise cause any such agreement to be terminated or rescinded by any party or allow any party to vary its terms. 

  

	1.5	There is no subsisting dispute between the Company and any other person in relation to any of the agreements referred to in paragraph 1.1 of this part 4, and there are no
circumstances which might give rise to any such dispute. 

  

	1.6	The Company has not given or received notice terminating any of the agreements referred to in paragraph 1.1 of this part 4. 

  

	1.7	The Company is not a party to any agreement, and the Company has not submitted an offer or tender which is capable of being converted into an agreement: 

  

	 	1.7.1	which is not in the ordinary course of business or which is not on arm’s length terms; 

  

	 	1.7.2	which involves or may involve obligations, restrictions or expenditure of an unusual, onerous or exceptional nature; 

  

	 	1.7.3	which so far as the Seller is aware provides for any financial commitment of any party to be adjusted with reference to any index of retail prices or other index;

  

 44 

 Part 4: Contracts 
  

	 	1.7.4	which is incapable of performance in accordance with its terms within six months of the date on which it was entered into or undertaken; 

  

	 	1.7.5	which cannot be terminated by the Company on less than three months’ notice without compensation; 

  

	 	1.7.6	which requires a consideration or other expenditure by the Company of more than £5,000 in aggregate or £10,000 in any 12-month period other than an agreement for the
payment of royalties in relation to the licensing by the Company of photographic images; 

  

	 	1.7.7	which provides for the Company to receive any sum, right or other asset, or discharge any liability, whose amount or value is expressed in or by reference to any currency other than
sterling or under which any right or obligation of the Company may be modified in the event of any change in currency exchange rates; 

  

	 	1.7.8	which limits the ability of the Company to carry on any business in any part of the world in such a manner as it thinks fit; 

  

	 	1.7.9	under which any sole or exclusive rights are granted by or to the Company; 

  

	 	1.7.10	pursuant to which the Company has disposed of any shares or business; 

  

	 	1.7.11	which is a finance lease, hire purchase, rental or credit sale agreement or which otherwise provides for the purchase of any asset or the right to purchase any asset by way of
periodical payment; or 

  

	 	1.7.12	for the provision of management consultancy or similar services to the Company. 

  

	1.8	The Company has not made or agreed to make any loan, or done or agreed to do any other thing, to provide a director with funds to meet expenditure incurred or to be incurred by him
in defending any criminal or civil proceedings, or otherwise as permitted by section 337A Companies Act 1985, or to enable a director to avoid incurring such expenditure. 

  

	1.9	The Company is not, nor has it agreed to become, a member of any partnership, joint venture or consortium or a party to any other arrangement for sharing income, profits, losses or
expenses. 

  

	1.10	Copies of the Company’s two types of photographer licensing agreements are attached to the Disclosure Letter. One licence agreement which enables the Company to recoup shoot
costs and associated costs has been entered into and 17 licensing agreements which do not allow such recoupment have been entered into. 

  

 45 

 Part 4: Contracts 
  

	1.11	The Company is not a party to, and is not under any restriction or obligation to any party under any contract, licence or other arrangement which relates in any way to both the
Business (as defined in the Production Agreement) and the Production Business (as defined in the Production Agreement). 

  

	2.	POWERS OF ATTORNEY AND AUTHORITIES 

  
 There are no subsisting powers of attorney given by the Company and no other subsisting written authorities by which any person may execute any document,
enter into any agreement or do or agree to do anything on behalf of the Company. 
  

	3.	RETENTION OF TITLE 

  
 The Company has not purchased any goods (including any plant or equipment) or materials on terms that property in them does not pass until full payment is
made or all indebtedness discharged. 
  

	4.	OUTSTANDING OFFERS 

  
 So far as the Seller is aware no offer or tender which is capable of being converted into an agreement binding on the Company, whether by acceptance or
other act of some other person or in any other way, is outstanding, except in the ordinary course of business. 
  

	5.	GUARANTEES AND INDEMNITIES 

  
 The Disclosure Letter contains details of all outstanding guarantees, indemnities, security agreements, comfort letters or other analogous or similar
agreements given by or for the benefit of the Company. 
  

	6.	POSSESSION OF DOCUMENTS 

  
 All title deeds of the Company and original counterparts or complete copies of all material written agreements under which the Company enjoys rights or by
which the Company is bound are in the Company’s possession and ownership or under its control. 
  

	7.	INSIDER CONTRACTS 

  

	7.1	The Company is not a party to, nor have the profits or financial position of the Company during the period since its incorporation been affected by, any agreement which is not on
arm’s length terms. 

  

 46 

 Part 4: Contracts 
  

	7.2	The Company is not a party to any subsisting agreement in which the Seller, or any Associate of the Seller is a party or is otherwise interested, directly or indirectly, nor has any
such agreement been entered into at any time during the period since its incorporation. 

  

	7.3	The Company has not transferred any asset to or received any asset from the Seller or any Associate of the Seller other than by way of sale for market value or by way of lawfully
declared dividend. 

  

	8.	EFFECT OF AGREEMENT 

  

	8.1	The sale of the Shares to the Buyer and the performance by the Seller of her obligations under this Agreement: 

  

	8.2	will not result in a breach of, or constitute a default under, any agreement under which the Company enjoys rights or by which it is bound; 

  

	8.3	will not entitle any party to an agreement under which the Company enjoys rights or by which it is bound to be released from any of that party’s obligations or to terminate or
vary its rights or obligations under that agreement; and 

  

	8.4	will not create or accelerate any obligation of the Company or cause or require the Company to lose or dispose of any right or asset or any interest in any asset, including by way
of the imposition or crystallisation of any Encumbrance on any asset. 

  

 47 

 Part 3: Compliance and Litigation 
  
 Part 5: Assets 
  

	1.	ASSETS SUFFICIENT FOR THE BUSINESS 

  
 The assets and rights owned by or licensed to the Company immediately following completion of the Hive Across Agreement, together with assets held under
any finance lease, hire purchase and rental or credit sale agreements referred to in the Disclosure Letter, comprise all assets and rights necessary for the continuation of the business of the Company as carried on at the date of this Agreement (but
for the avoidance of doubt following completion of the Hive Across Agreement). 
  

	2.	OWNERSHIP AND POSSESSION OF ASSETS 

  

	2.1	All assets used by the Company in the ordinary course of its business as carried on at the date of this Agreement (and for the avoidance of doubt following completion of the Hive
Across Agreement) or which are necessary for the continuation of such business, other than any asset held under an agreement referred to in paragraph 1 of this part, are legally and beneficially owned by the Company free from Encumbrances, and the
Company has not received notice that any person is nor so far as the Seller is aware has any person claimed to be entitled to an Encumbrance in respect of any such asset. 

  

	2.2	All of the tangible assets owned by the Company, or which the Company has the right to use, are in the possession and ownership or under the control of the Company.

  

	2.3	The Company: 

  

	 	2.3.1	legally and beneficially wholly owns, free from Encumbrances, at least [Omitted and filed separately with the Commission]*** digital images; and 

  

	 	2.3.2	has a valid right to use at least [Omitted and filed separately with the Commission]*** digital images under a Licence (as defined in part 10 of this schedule).

  

	3.	VULNERABLE ANTECEDENT TRANSACTIONS 

  

	3.1	The Company has not been a party to any transaction pursuant to or as a result of which an asset owned, purportedly owned or otherwise held by the Company is liable to be
transferred or re-transferred to another person, or which gives or may give rise to a right of compensation or other payment in favour of another person. 

  

	3.2	Without limiting paragraph 3.1 of this part, the Company has not been a party to any transaction to which the provisions of sections 238 (transactions at an undervalue), 239
(preferences), 339 (transactions at an undervalue), 340 (preferences) or 423 (transactions defrauding creditors) Insolvency Act 1986 may still be applicable. 

  

	***	Portions of the exhibit have been omitted and separately filed with the Commission. Confidential treatment has been requested for the omitted portions of the exhibit.

  

 48 

 Part 5: Assets 
  

	4.	INSURANCE 

  

	4.1	Annexed to the Disclosure Letter are copies of all insurance policies maintained by the Company. 

  

	4.2	The Company maintains, and has at all material times maintained, adequate environmental insurance cover and insurance in respect of all of its assets of an insurable nature against
fire, accident, theft and damage in amounts representing their full replacement or reinstatement values, against third party loss (including by way of employer’s liability and public liability insurance), loss of profits and all other risks
required by applicable law or regulation to be covered by insurance or normally insured against by companies carrying on the same business. 

  

	4.3	All premiums due on the subsisting insurance policies of the Company have been duly paid, all other conditions of those policies have been performed and observed, and so far as the
Seller is aware there are no circumstances which might result in an increase in premium or make any policy void or voidable. 

  

	4.4	The Company has not been refused insurance during the period of three years ending on the date of this Agreement. 

  

	4.5	The subsisting insurance policies of the Company will continue in full force and effect notwithstanding the sale of the shares to the Buyer under this Agreement.

  

	4.6	The Company has not made any insurance claims during the period of two years ending on the date of this Agreement, and so far as the Seller is aware there are no circumstances which
would or might entitle the Company to make such a claim or which would or might be required under any of the policies to be notified to the insurers. 

  

	5.	LEASED ASSETS 

  

	5.1	There are no circumstances, and none is likely to arise, in relation to any asset held by the Company under a finance lease or a hire purchase, rental, credit sale or other similar
agreement by which the rental payable has been, or is likely to be, increased. 

  

	5.2	The amount of the last rental due from the Company in respect of any plant and machinery held under a finance lease or a hire purchase, rental, credit sale or other similar
agreement is stated in the Disclosure Letter and was no less than the amount properly payable under the relevant agreement having regard to all its terms, and at the date of this Agreement there are no circumstances which entitle or might entitle
the lessor to require an upward adjustment to the rental. 

  

 49 

 Part 5: Assets 
  

	6.	CHARGES 

  
 The Company does not have the benefit of any charges which require registration under the Companies Act 1985. 
  

	7.	RECORDS 

  
 All records relating to the business of the Company are located at the Property or otherwise under the Company’s control. 
  

 50 

 Part 3: Compliance and Litigation 
  
 Part 6: Environmental Matters 
  

	1.	HEALTH AND SAFETY 

  
 So far as the Seller is aware, the Company has complied in all material respects at all times with the Health and Safety at Work etc. Act 1974 and all
Regulations relating to Health and Safety and the Company has not received any notice or complaint from any employee of the Company in respect of any Health and Safety Regulations. So far as the Seller is aware there are no circumstances likely to
place the Company in breach of any Health and Safety Regulations. 
  

	2.	DEFINITIONS 

  
 In this part 6: 
  

			
	“Environment”	    	means all or any of the following media: land including (without limitation) land covered with water, the air, including (without limitation) the air within buildings and other natural or
man-made structures above or below ground, and any living organisms or systems supported by those media;
		
	“Environmental Laws”	    	 means all national or local statutes, codes or other laws or legislation concerning health and safety or matters related to pollution or
protection of the environment, and all decisions, rules, regulations, ordinances, orders, notices and directives of the European Community and the United Kingdom Parliament and other official bodies having jurisdiction in respect of those matters
which:
  
 (i)       have as a purpose or effect the protection or enhancement of the Environment and relate to the presence, manufacturing, processing, treatment, keeping, handling, use, possession, supply, receipt,
sale, purchase, import, export or transportation of Hazardous Materials;
  
 (ii)      relate to the release, spillage, deposit, escape, discharge, leak or emission of
Hazardous Materials;

  

 51 

 Part 6: Environmental Matters 
  

			
	 	    	 (iii)    relate to the control of Waste;
  
 (iv)     relate to noise,
vibration or radiation;
  
 (v)      relate to the use of land or the erection, occupation or use of buildings or other natural or man-made structures above or below ground; or
  
 (vi)     relate to human health and safety;

		
	“Hazardous Material”	    	means any substance or organism defined under the Environmental Laws

  

	3.	ENVIRONMENTAL LAWS AND PROCEEDINGS 

  

	3.1	Neither the Company nor any of its officers, agents or employees (during the course of their duties) have received any notice of contravention of any Environmental Laws.

  

	3.2	So far as the Company is aware, no material civil, criminal or administrative claim, or notice of violation, demand, cause of action, abatement or other order (conditional or
otherwise) has been served on the Company or any of its officers, agents or employees (during the course of their duties) in respect of any Environmental Laws relating to the Company, and the Company is not aware of any circumstances which might
form the basis of any such claim, accusation, allegation or notice of violation, demand, cause of action, abatement or other order. 

  

	4.	HAZARDOUS MATERIAL, WASTE AND POLLUTION 

  

	4.1	So far as the Company is aware it has not deposited, disposed of, kept, treated, imported, exported, transported, processed, manufactured, collected, sorted, produced, caused the
presence of any Hazardous Material at any time (whether or not on the Property). 

  

 52 

 Part 3: Compliance and Litigation 
  
 Part 7: Property 
  

	1.	TITLE 

  

	1.1	The Property comprises all the property owned, occupied or otherwise used by the Company and is occupied solely by the Company. 

  

	1.2	The Property is used by the Company in connection with its business pursuant to the terms of the Lease. 

  

	1.3	The Company is the tenant of the Property. 

  

	1.4	The information contained in schedule 4 is complete and accurate. 

  

	2.	ENCUMBRANCES 

  

	2.1	The Lease is free from mortgages, debentures, charges, rent charges, liens or other encumbrances or matters of an onerous nature which would affect their value.

  

	2.2	So far as the Seller is aware, the Property is not subject to outgoings other than rent service charges, business rates, water rates and insurance premiums and those set out or
referred to in the Lease. 

  

	2.3	If any disclosure is made in the Disclosure Letter qualifying any of paragraphs 2.1 and 2.2 of this part 7, all obligations and liabilities imposed by or arising in relation to any
matter so disclosed have been performed and discharged and no payments in respect of them are outstanding. 

  

	2.4	So far as the Seller is aware, the Lease is not subject to options or rights of pre-emption. 

  

	3.	PLANNING MATTERS 

  

	3.1	The Company has not received any notice of breach in respect of any planning permissions, orders, regulations, consents and bye-laws applicable to the Property.

  

	4.	STATUTORY OBLIGATIONS 

  

	4.1	The Company is not aware of any notices of breach in respect of any applicable statutory and bye-law requirements with respect to the Property. 

  

	4.2	The Company is not aware of any unperformed obligation with respect of the Property performance of which is necessary to comply with the requirements of a competent authority
exercising statutory or delegated powers. 

  

 53 

 Part 7: Property 
  

	5.	ADVERSE ORDERS 

  

	5.1	The Company has not received any compulsory purchase notices, orders or resolutions affecting the Property. 

  

	5.2	The Company has not received any closing demolition or clearance orders, enforcement notices or stop notices affecting the Property. 

  

	6.	CONDITION OF THE PROPERTY 

  

	6.1	Since the date of the Lease the Company is not aware of there being any material damage caused to or material deterioration in the structure of the Property.

  

	6.2	There are no disputes with neighbouring owners with respect to boundary walls and fences relating to the Property or with respect to easements or rights over or means of access to
any of the Property. 

  

	6.3	The Property enjoys the main services of water, drainage and electricity. 

  

	7.	INSURANCE 

  

	7.1	So far as the Seller is aware, the Property is insured in accordance with the terms of the Lease. 

  

	8.	LEASEHOLD PROPERTY 

  

	8.1	The Company has paid the rent and has not received any notices of breach from the landlord in respect of the covenants on the part of the tenant and the conditions contained in the
Lease under which the properly is held by the Company. 

  

	8.2	So far as the Company is aware, the Lease is in full force. 

  

	8.3	The licences, consents and approvals required from the landlord and any superior landlords under the Lease have been obtained and the covenants on the part of the tenant contained
in those licences, consent and approvals have been duly performed save in relation to any consent required in relation to the Licence referred to in clause 7.2.10. 

  

	8.4	So far as the Company is aware, no obligation necessary to comply with a notice given by or other requirement of the landlord under the Lease is outstanding and unperformed.

  

	8.5	The Company has not entered into an agreement with the landlord of the Property specifying circumstances in which it would be reasonable for the landlord to withhold its consent to
an assignment in accordance with section 19(1A) Landlord and Tenant Act 1927. 

  

 54 

 Part 7: Property 
  

	8.6	The Company has no contingent liability (as original or previous tenant or as guarantor) in respect of any lease granted prior to 1 January 1996 or following an excluded
assignment as defined in the Landlord and Tenant (Covenants) Act 1995. 

  

	8.7	The Company has not surrendered the Lease. 

  

	8.8	The Company has not assigned the Lease. 

  

 55 

 Part 3: Compliance and Litigation 
  
 Part 8: Employment 
  
 References in this part 8 to “employees” shall be deemed to include officers and workers. 
  

	1.	The Disclosure Letter contains full details of the identities, dates of commencement of employment, engagement or appointment to office, dates of birth, notice periods, basic annual
salaries or fees, and all accrued but unused holiday entitlements of all the individuals employed or engaged by the Company. 

  

	2.	Copies of all standard contracts for all individuals employed or engaged by the Company are annexed to the Disclosure Letter. 

  

	3.	Full details of all benefits and other arrangements (whether contractual or discretionary) offered to employees or persons engaged by the Company, including without limitation
copies of employee handbooks and policies are annexed to the Disclosure Letter. 

  

	4.	The Disclosure Letter contains complete and accurate details of any outstanding offer of employment or engagement made to any individual by the Company, and no individual has
accepted an offer of employment or engagement by the Company who has not yet started his employment or engagement. 

  

	5.	There are no agreements between the Company and any trade union or other body representing employees. 

  

	6.	In relation to each of the individuals presently employed or engaged by the Company (and so far as relevant to each individual formerly employed or engaged by the Company) the
Company has maintained adequate and suitable records regarding the service of each of its employees and workers. 

  

	7.	No person now or previously employed or engaged by the Company has or may in the future have a right to return to work (whether for reasons connected with maternity leave, absence
by reason of illness or incapacity or otherwise) or a right to be reinstated or re-engaged by the Company. 

  

	8.	Save as disclosed in the Disclosure Letter, there is no agreement, scheme, policy of insurance or obligation (whether legal or moral) for the payment of any pensions or other like
benefits on retirement or death or during periods of sickness or disablement for the benefit of any of the Company’s employees or individuals formerly employed or engaged by the Company and/or for the benefit of dependants of such individuals.

  

	9.	Save as may be expressed on the face of any service contract of any of the employees which is annexed to the Disclosure Letter there are no terms of employment or engagement for any
person employed or engaged by the Company which provide that a 

  

 56 

 Part 8: Employment 
  
 change in control of the Company (however change of control may be defined, if at all) shall entitle the employee or worker
to treat the change of control as amounting to a breach of contract or entitling him to any payment or benefit whatsoever or entitling him to treat himself as redundant or otherwise dismissed or released from any obligation. 
  

	10.	Save as disclosed in the Disclosure Letter the Company has no obligation to make any payment on redundancy in excess of the statutory redundancy payment. 

 

	11.	Save as disclosed in the Disclosure Letter no employee of the Company is subject to a current disciplinary warning, proceeding or procedure. 

  

	12.	Save as disclosed in the Disclosure Letter the Company does not operate any bonus scheme, commission scheme, approved share option scheme, share incentive scheme, approved profit
sharing scheme, enterprise management incentive scheme, employee share ownership plan or unapproved share scheme under which share benefits are provided, in respect of any person employed or engaged, or formerly employed or engaged, by the Company.

  

	13.	No amounts due to or in respect of any past or present employee of the Company (including all taxes, National Insurance contributions and pensions contributions and any other
levies) are in arrears or unpaid. 

  

	14.	No proposal, assurance or commitment has been communicated to any employee (for the avoidance of doubt excluding any employee proposed to transfer to Applestock under the Hive
Across Agreement) of the Company regarding any change to his terms of employment or engagement or working conditions or regarding the continuance, introduction, increase or improvement of any benefit or any discretionary arrangement.

  

	15.	All subsisting contracts of service and all contracts for services with any individual to which the Company is a party are determinable on three months’ notice or less without
giving rise to a claim for damages or compensation, other than a statutory redundancy payment or statutory compensation for unfair dismissal. 

  

	16.	No employee of or consultant to the Company: 

  

	16.1	has given or received a period of notice terminating his employment or engagement which has not yet expired; or 

  

	16.2	will be entitled to give notice, receive any payment or benefit, treat himself as redundant or otherwise dismissed, claim for breach of contract or claim to be released from any
obligation as a result of the sale of the Shares to the Buyer; or 

  

 57 

 Part 8: Employment 
  

	16.3	has indicated an intention to terminate his employment or engagement, or is likely to terminate his employment or engagement as a result of the sale of the Shares to the Buyer.

  

	17.	There is no outstanding or threatened claim, dispute, legal proceeding or grievance against the Company by any person who is now or has been employed or engaged by, or an officer
of, the Company and no payments are due from the Company and there are no circumstances which might give rise to any such claim, dispute, legal proceeding or grievance or payment due. 

  

	18.	No employee of the Company is suffering from a condition which requires or might require any adjustment within the work place pursuant to section 6 of the Disability Discrimination
Act 1995 and so far as the Seller is aware no employee of the Company is suffering from any condition which impairs his ability to perform his duties. 

  

	19.	There is no requirement for a work permit in relation to any employee of the Company, and the provisions of the Asylum and Immigration Act 1996 have been complied with in respect of
every employee of the Company. 

  

	20.	Save as disclosed in the Disclosure Letter the Company has not made any loan or advance, or provided any other form of financial assistance which remains unpaid or is still
outstanding, to any past or present employee. 

  

 58 

 Part 3: Compliance and Litigation 
  
 Part 9: Pensions 
  

	1.	DEFINITIONS 

  
 In this part 9: 
  

			
	“Employee”	  	means any employee or director of the Company as at the date of this Agreement;
		
	“Pension Scheme”	  	means the scheme known as the Bananastock Group Personal Pension Plan; and
		
	“Relevant Employee”	  	means any employee or director or former employee or director of the Company.

  

	2.	CURRENT PENSION ARRANGEMENTS 

  
 Except for the Pension Scheme the Company is not a party to or participates in or contributes to any scheme, agreement or arrangement (whether legally
enforceable or not) for the provision of any pension, retirement, death, incapacity, sickness, disability, accident or other like benefits (including the payment after leaving the employment of the Company of medical expenses) for any Relevant
Employee or for the widow, widower, child or dependant of any Relevant Employee and the Company will not enter into any such arrangement before Completion. 
  

	3.	COMMUNICATIONS AND EX GRATIA PENSIONS 

  
 Neither the Company nor the Seller: 
  

	3.1	has given any undertaking or assurance (whether legally enforceable or not) as to the continuance, introduction, improvement or increase of any benefit of a kind described in
paragraph 2 or as to the rights of any person to receive such benefits, or 

  

	3.2	is paying or has in the last two years paid any such benefit, 

  
 to (in either case) any Relevant Employee or any widow, widower, child or dependant of any Relevant Employee. 
  

	4.	STAKEHOLDER PROVISION 

  
 The Company has no obligation to facilitate access to a stakeholder pension scheme under section 3 of the Welfare Reform and Pensions Act 1999.

  

 59 

 Part 9: Pensions 
  

	5.	OLD DEFINED BENEFIT ARRANGEMENTS 

  
 Neither the Company, the Seller nor any Associate of the Seller has in the five years before the date of this Agreement participated in or been a
participating employer of any defined benefit arrangement. Where “defined benefit arrangement” means a scheme, agreement or arrangement under which the amount or some or all of the benefits payable to or in respect of a member of
the scheme, agreement or arrangement is calculated in accordance with a formula which takes account of the service of the member to retirement, death or withdrawal and the remuneration of the member at or close to his retirement, death or
withdrawal. 
  

	6.	TUPE TRANSACTIONS 

  
 No person is entitled to any enhanced terms as to the payment of relevant benefits (whether under the Pension Scheme or otherwise) if he takes early
retirement or is made redundant (or as a result of having taken early retirement or being made redundant) or otherwise that have passed to the Company or to any business previously acquired by the Company by the operation of the Transfer of
Undertakings (Protection of Employment) Regulations 1981. 
  

	7.	DISPUTES 

  

	7.1	Neither the Pension Scheme nor the Company is engaged or involved in any proceedings which relate to or are in connection with the Pension Scheme or the benefits thereunder and so
far as the Seller is aware no such proceedings are pending or threatened and so far as the Seller is aware there are no facts likely to give rise to any such proceedings. 

  

	7.2	In this paragraph 7, “proceedings” includes any litigation or arbitration and also includes any investigation or determination by the Pensions Ombudsman, the
Occupational Pension Advisory Service or the Occupational Pensions Regulatory Authority or any complaint under any internal dispute resolution procedure established in connection with the Pension Schemes. 

  

	8.	EXEMPT APPROVAL 

  
 The Pension Scheme is approved under Chapter IV of Part XIV of ICTA and so far as the Seller is aware there is no reason why such approval might be
withdrawn or might cease to apply. 
  

	9.	ACCESS TO MEMBERSHIP 

  
 Every person who has at any time been entitled to join or apply to join the Pension Scheme has been invited to do so as of the date on which he became so
entitled having 
  

 60 

 Part 9: Pensions 
  
 been informed in writing of his rights in this regard, and no person has been excluded from membership of the Pension Scheme
or from any benefits thereunder in contravention of any UK or European Community legislation or any other applicable legislation in particular, but not limited to: 
  

	9.1	sections 62 to 66 of Pensions Act 1995; 

  

	9.2	Articles 137 and 141 of the Treaty of Rome; 

  

	9.3	the Part-Time Workers (Prevention of Less Favourable Treatment) Regulations (SI 2000/1551); and 

  

	9.4	the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (SI 2002/2034). 

  

	10.	RATES OF CONTRIBUTION 

  
 The present rates of contribution to the Pension Scheme is three per cent of pensionable salary for employers and three per cent for Employees and no
increase in the rates of any contribution to the Pension Scheme by the Company for any Employee is agreed or proposed or advised or envisaged. A copy of the schedule of contributions to the Pension Scheme is attached to the Disclosure Letter.
Details of the Employees who are members of the Pension Scheme and all material governing documentation, including all announcements, booklets and the like which have been issued or communicated to all or any of the Employees are set out in or
attached to the Disclosure Letter. 
  

	11.	PAYMENT OF CONTRIBUTIONS 

  
 Contributions to the Pension Scheme are not paid in arrears and all contributions and premiums which are payable by the Company and other employers
participating in the Pension Scheme due under the Pension Scheme and all contributions due from members of the Pension Scheme have been duly paid when due. 
  

	12.	MONEY PURCHASE BENEFITS 

  
 All pension benefits payable on the death or retirement of a member of the Pension Scheme are money purchase benefits within the definition of the term in
section 181 of the Pension Schemes Act 1993 and are not guaranteed in relation to a proportion of remuneration and no assurance, promise or guarantee (whether written or oral) has been given to any Relevant Employee or any particular level or amount
of benefit (other than death in service benefits) payable to or in respect of him on retirement, death or leaving service. 
  

 61 

 Part 9: Pensions 
  

	13.	INSURANCE OF DEATH BENEFITS 

  
 No employee is entitled to any lump sum death benefits under the Pension Scheme (other than a refund of contributions with interest where appropriate).

  

	14.	CONTRIBUTION NOTICES 

  
 The Company is not nor has been a party to (or connected with a party to) any act or failure where the main purpose or one of the main purposes of that
act or failure was: 
  

	14.1	to prevent the recovery of the whole or any part of a debt which was, or might become, due from an employer in relation to an occupational pension scheme under s.75 Pensions Act
1995; or 

  

	14.2	otherwise than in good faith, to prevent such a debt becoming due or to reduce the amount of such a debt which was or would otherwise become due. 

  

	15.	MORAL HAZARD 

  
 No person with which the Company is connected or of which the Company is an associate participates, or has participated, as an employer in an occupational
pension scheme other than a money purchase scheme (as defined in section 181 of the Pensions Scheme Act 1993). For the purposes of this paragraph, “connected” and “associate” are to be interpreted in accordance with sections 249
and 435 of the Insolvency Act 1986. 
  

 62 

 Part 11: Information Technology 
  
 Part 10: Intellectual Property 
  

	1.	DEFINITIONS 

  
 In this part 10: 
  

			
	“Business Intellectual Property”	  	means the Intellectual Property which has been or is used or required in connection with the business of the Company;
		
	“Intellectual Property”	  	means all intellectual property rights, including (without limitation) patents, supplementary protection certificates, petty patents, utility models, Trade Marks, goodwill, database rights,
rights in designs, copyrights and topography rights (whether or not any of these rights are registered, and including applications and the right to apply for registration of any such rights) and all inventions, know-how, trade secrets, techniques
and confidential information, customer and supplier lists and other proprietary knowledge and information, and all rights and forms of protection of a similar nature or having equivalent or similar effect to any of these which may subsist anywhere
in the world, in each case for their full term, and together with any renewals or extensions;
		
	“Licence”	  	means any licence, permission or consent in respect of the use of any Intellectual Property and any arrangement of which any licence, permission or consent forms part; and
		
	“Trade Marks”	  	business names, domain names, registered and unregistered trade marks and applications for registration of any of the above.

  

 63 

 Part 10: Intellectual Property 
  

	2.	OWNERSHIP 

  

	2.1	The Company is either the sole legal and beneficial owner free from all Encumbrances of the Business Intellectual Property, or the Company has a valid Licence to use all Business
Intellectual Property which it uses. 

  

	2.2	The Business Intellectual Property is valid, enforceable and subsisting and so far as the Seller is aware nothing has been done or omitted to be done which may cause any of it to
cease to be so or to affect adversely the reputation of the Trade Marks used by the Company. 

  

	2.3	Since the relevant provisions of the Copyright Designs and Patents Act 1988 came into force, all moral rights subsisting in relation to Business Intellectual Property have been
irrevocably and unconditionally waived. 

  

	2.4	All of the Trade Marks, and all of the other Intellectual Property, which are registered or for which an application for registration has been made (including for the avoidance of
doubt domain names), and which are or have been used or required by the Company, are listed in the Disclosure Letter. The Company is the sole legal and beneficial owner of all the Trade Marks and all Intellectual Property which is registered or for
which an application has been made, and all associated rights, and of the goodwill symbolised by the Trade Marks, in each case whether or not so listed. 

  

	2.5	The Company has obtained all model releases and since 1 January 2003, has obtained all property releases in relation to all photographic images exploited by the Company and for
which such releases are required for such exploitation. 

  

	2.6	The Company does not hold, own or exploit any Intellectual Property in any software. 

  

	3.	MAINTENANCE 

  

	3.1	The Company does not have any registered Intellectual Property, nor has it made any applications to register any Intellectual Property, other than the domain names
www.bananastock.com and www.bananastock.co.uk. 

  

	3.2	All documents material to the right, title and interest of the Company to the Business Intellectual Property and to the Licences of Business Intellectual Property granted to the
Company and all documents and materials necessary for the prosecution or maintenance (as applicable) of the domain names used by the Company form part of the records or materials in the possession and ownership or under the control of the Company.

  

	3.3	All reasonable steps have been taken for the diligent maintenance and protection of the Business Intellectual Property. All application and renewal fees and other costs and

  

 64 

 Part 10: Intellectual Property 
  
 charges in relation to the maintenance of all registrations and the prosecution of all applications in relation to the
domain names used by the Company and all other payments due and payable by the Company in respect of the same have been paid at the due time. All other steps for the diligent maintenance and prosecution of such registrations and applications have
been taken in a timely manner. 
  

	3.4	The expiry dates of the registrations of all domain names comprised in the Trade Marks used by the Company are listed in the Disclosure Letter. 

  

	4.	ADEQUACY OF RIGHTS 

  

	4.1	There is no Intellectual Property or Licence, the loss or termination or expiration of which would have a material adverse effect on the operation of the business of the Company,
and so far as the Seller is aware, no such loss, termination or expiration is likely to occur during the period of 12 months starting on the date of this Agreement. 

  

	4.2	The sale of the Shares to the Buyer and the performance by the parties of their obligations under this Agreement will not entitle any party to any Licence or other agreement under
which the Company enjoys rights or by which it is bound to be released from any of that party’s obligations, to change the terms on which Business Intellectual Property is used or held by the Company or to terminate or vary that party’s
rights under the relevant Licence or other agreement, and will not create or accelerate any obligation of the Company or cause or require the Company to lose or dispose of any Business Intellectual Property or any interest in any Business
Intellectual Property. 

  

	4.3	The Business Intellectual Property owned by the Company comprises all the Intellectual Property necessary to carry on the business as conducted by it as at the date of this
Agreement (assuming, for the avoidance of doubt, the completion of the Hive Across Agreement). 

  

	5.	DEALINGS AND LICENCES 

  

	5.1	The Company has not authorised or otherwise permitted, expressly or by implication, any use whatsoever of Business Intellectual Property nor granted to any third party any right or
interest in respect of the Business Intellectual Property other than in the ordinary course of business. 

  

	5.2	With the exception of all end user licence agreements in the one of the Company’s standard forms, as such forms appear on the Company’s website, all Licences and other
agreements in relation to Intellectual Property to which the Company is a party or enjoys rights (whether as licensor or licensee or otherwise) are annexed to the Disclosure Letter or details of them (including as to term, territory, restriction on
scope of rights granted and on sub-licensing and assignment) are contained in the Disclosure Letter. 

  

 65 

 Part 10: Intellectual Property 
  

	5.3	All Licences and agreements referred to in paragraph 5.1 are in writing and are valid, binding and enforceable in accordance with their terms. The Company has not and so far as the
Seller is aware no party to any such Licence or agreement has committed a breach of it, and the Company has not received notice of breach of or termination of any such Licence or agreement. 

  

	6.	INFRINGEMENTS 

  

	6.1	No activities, products, services or processes of the Company (or so far as the Seller is aware any licensee under any Licence granted by the Company) or the Business Intellectual
Property from time to time infringe or have infringed any Intellectual Property of a third party or involve or have involved the unlicensed use of a third party’s confidential information or give or have given rise to liability to pay
compensation. 

  

	6.2	So far as the Seller is aware no third party has made any unauthorised use or exploitation of any Business Intellectual Property or has infringed any Business Intellectual Property
or other Intellectual Property in which the Company has any interest, and the Company has not received notice that and so far as the Seller is aware no third party or competent authority has made any claim, challenge or opposition against any party
(including the Company) in relation to the Business Intellectual Property or other such Intellectual Property. 

  

	6.3	The Company has not received notice that, nor is the Seller aware that, the Company is subject to any order or injunction or other measure or undertaking imposed by any court or
other body of competent jurisdiction in relation to Business Intellectual Property (including, without limitation, any prohibition or restriction on use). 

  

	7.	USE OF NAME 

  
 The Company does not trade or carry on business under or use any name or style other than its corporate name. 
  

	8.	CONFIDENTIAL INFORMATION AND KNOW-HOW 

  

	8.1	The Company has at all times used its reasonable endeavours to keep confidential all confidential information and know-how (whether technical, financial or commercial, and
including, without limitation to the extent confidential, techniques, instruction manuals, formulae, trade secrets and confidential information in respect of the Company’s agents, suppliers and customers and any other person who has had
dealings with it) and relating to the business or affairs of the Company, the disclosure of which might cause loss or damage to or adversely affect the Company. 

  

 66 

 Part 10: Intellectual Property 
  

	8.2	The Company enforces and operates procedures which maintain the confidentiality of its confidential information and know-how. So far as the Seller is aware, such confidentiality has
not at any time been breached. 

  

	8.3	The Company has not disclosed (except in the ordinary course of business and subject to a binding confidentiality agreement, details of which are contained in the Disclosure Letter)
any of its confidential information or know-how. 

  

	9.	CREATION OF INTELLECTUAL PROPERTY 

  
 All parties (whether individual, partnership or limited company) retained, commissioned, employed or otherwise engaged by the Company from time to time to
produce photographic images and who, in the course of such engagement created, discovered, conceived or developed photographic images in which Intellectual Property subsists or arose or might reasonably have been expected to do so are bound by
agreements with the Company whereby all such Intellectual Property vests in or is licensed to the Company, and all such agreements contain terms which prevent such parties disclosing confidential information and know-how about the Company and its
business. No such party has, or has made any claim to, any right, title or interest in or in respect of such Intellectual Property or to any compensation or remuneration in relation to such Intellectual Property, whether under section 40 Patents Act
1977 or equivalent legislation in the world or otherwise. 
  

	10.	CLAIMS 

  

	10.1	No claims, disputes or proceedings in respect of Business Intellectual Property have been settled in the period of three years ending on the date of this Agreement or are current,
pending or threatened. 

  

	10.2	So far as the Seller is aware, there are no circumstances which might have a material adverse effect on the Company’s ownership of, or its ability to use, the Business
Intellectual Property. 

  

 67 

 Part 11: Information Technology 
  
 Part 11: Information Technology 
  

	1.	DEFINITIONS 

  
 In this part 11: 
  

			
	“Hardware”	    	means all information technology, telecommunications, network and peripheral equipment used by or on behalf of the Company in the ordinary course of business;
		
	“Hosting Agreement”	    	means the agreement between the Company and Bluhalo Ltd under the terms of which NTT Verio is providing hosting services of the Website to the Company (a copy of which is annexed to the
Disclosure Letter);
		
	“Hosting Services”	    	means the services provided to the Company under the Hosting Agreement;
		
	“Images Database”	    	means all images of any type and all information derived from or which can be read or decoded so as to form an image of any type held in any medium (including on paper, on an electronic device
or on a storage medium intended to be read by an electronic device) used by the Company for potential or actual commercial exploitation;
		
	“Intellectual Property”	    	has the same meaning as in part 10 of this schedule;
		
	“IT Systems”	    	means all Hardware and Software used by or on behalf of the Company in the ordinary course of business;
		
	“Package Software”	    	means all computer programs owned by a third party which are used by or on behalf of the Company;
		
	“Software”	    	means all Package Software;
		
	“Source Code”	    	means a version of the relevant Software in the language in which it was programmed (including all programmers’ comments) together with all related manuals, documentation, working papers,
diagrams, charts, data and other information in an accessible and readable format which are necessary or reasonably

  

 68 

 Part 11: Information Technology 
  

			
	 	  	desirable to enable a reasonably skilled programmer to understand, modify, correct, maintain, support and replicate the Software without the assistance of a third party; and
		
	“Website”	  	means the hardware, computer programs, Intellectual Property, domain names, licences, contracts, data or other rights or benefits required to use, operate, maintain or support the systems
comprising the website located at http://www.bananastock.co.uk.

  

	2.	THE HARDWARE 

  
 The Company owns the Hardware. The Disclosure Letter contains full details the Hardware. 
  

	3.	PACKAGE SOFTWARE 

  

	3.1	The Company is licensed to use the Package Software. The Disclosure Letter contains full details of all such licences. 

  

	3.2	The Package Software consists of generally commercially available software licensed on standard terms. 

  

	3.3	None of the licences for the Package Software requires further payments of royalties or software support fees of more than £1,000 in aggregate or more than £2,500 per
year. 

  

	4.	ADEQUACY OF IT SYSTEMS 

  

	4.1	The IT Systems and the Hosting Services are the only information technology systems and services required by the Company to carry on its business. 

  

	4.2	The Company has no plans in place or under consideration nor any business need to change, replace, develop or update the IT Systems or introduce any new IT systems and no such
change, replacement, development or update is under way. 

  

	4.3	All databases used by the Company are owned by the Company and run on the IT Systems. 

  

	5.	OPERATION AND MAINTENANCE OF IT SYSTEMS 

  

	5.1	The IT Systems have been and continue to be properly and regularly maintained. The Disclosure Letter contains full details of all maintenance and support agreements relating to the
IT Systems. 

  

 69 

 Part 11: Information Technology 
  

	5.2	There has been no material disruption or interruption to the business of the Company in the 12 month period ending on the date of this Agreement and so far as the Seller is aware
there are no circumstances which may give rise to such a disruption or interruption. 

  

	6.	SECURITY OF IT SYSTEMS 

  

	6.1	The Company implements, maintains and keeps up-to-date: 

  

	 	6.1.1	adequate physical and logical security processes and software to protect the IT Systems and any information held on them; 

  

	 	6.1.2	adequate procedures to prevent unauthorised access or the introduction of viruses or similar destructive code; 

  

	 	6.1.3	adequate procedures for the taking and storing on-site and off-site of back-up copies of the Software and any data held on the IT Systems; and 

  

	 	6.1.4	back-up systems and disaster recovery systems and procedures sufficient to enable the Company to continue to function without any material disruption or interruption in the event of
a failure, bug or breakdown of any part of the IT Systems or the destruction, corruption or loss of access to any of the data held on the IT Systems. 

  

	6.2	The Company has procured the provider of Hosting Services implements, maintains and keeps up-to-date: 

  

	 	6.2.1	adequate physical and logical security processes and software to protect the Website; 

  

	 	6.2.2	adequate procedures to prevent unauthorised access or the introduction of viruses or similar destructive code; 

  

	 	6.2.3	adequate procedures for the taking and storing on-site and off-site of back-up copies of the Software and any data held on or through the Website; and 

  

	 	6.2.4	back-up systems and disaster recovery systems and procedures sufficient to enable the Company to continue to function without any material disruption or interruption in the event of
a failure, bug or breakdown of any part of the Website or the destruction, corruption or loss of access to any of the data held on the Website. 

  

 70 

 Part 11: Information Technology 
  

	7.	DISPUTES 

  

	7.1	So far as the Seller is aware no party is in breach of the terms of any agreement or licence relating to the IT Systems or the Hosting Services. 

  

	7.2	So far as the Seller is aware, there are no disputes regarding the operation or performance of the IT Systems or the Hosting Services. 

  

	8.	CURRENCY COMPLIANCE 

  
 The IT Systems are able to process all functions and transactions denominated in each currency in which the Company does business. 
  

	9.	ACCESS TO DATABASES 

  
 The Company has unrestricted access from time to time to all information comprised in the Images Database. The Company is solely responsible for adding
images to the Images Database and retains a copy of all such images. The Company has in its possession a copy of the Image Database in a durable form which is readable by eye or by the IT Systems. 
  

 71 

 SCHEDULE 3 
  

Tax 
  
 Part 1: Tax definitions and interpretation 
  

	1.	Tax definitions 

  
 In this schedule the following words and expressions shall have the following meanings unless the context requires otherwise: 
  

			
	 “Event”
	  	any act, omission, arrangement, transaction or other event whatsoever (including, without limitation, the entering into this Agreement, Completion, the Company ceasing or having ceased to be a
member of any group or associated with any other person for any tax purpose, any change in the residence of any person, the winding-up or dissolution of any person, the death of any individual, the provision of services to the Company by any person
(including the employment of any person by the Company or any person holding an office of the Company) and the provision of services or the supply of goods by the Company to any person);
		
	 “ITEPA”
	  	the Income Tax (Earnings and Pensions) Act 2003;
		
	 “Relief”
	  	 any loss, relief, exemption, allowance, deduction, credit or set-off in respect of Tax or relevant to the computation of Tax and any right to
repayment of Tax and:
  
 (a)      any reference to the “use or set-off” of a Relief shall be construed accordingly;
  
 (b)      any reference to the “loss” of a Relief includes the absence, non-existence,
reduction or cancellation of any such Relief or such Relief being wholly or partly unavailable; and

  

 72 

			
	 	  	 (c)      any reference to a “right to repayment of Tax” includes
any right to repayment supplement or interest or other similar payment in respect of Tax,
  
 and cognate expressions shall be construed accordingly;

		
	“SSCBA 1992”	  	the Social Security Contributions and Benefits Act 1992;
		
	“Tax” or “Taxation”	  	 all forms of taxation, duties, rates, levies, withholdings, deductions, charges and imposts imposed in the United Kingdom or elsewhere including but
not limited to:
  
 (a)      in the United Kingdom, income tax to which the Pay As You Earn system applies, advance corporation tax, any liability arising under section 419 or 601 ICTA, national insurance contributions, value
added tax and input tax with the meaning of section 24 VATA;
  
 (b)      all penalties, surcharges, fines and interest relating to any of the above or to the making of any return or the failure to make or the making of any incomplete or incorrect
return in respect of any of the above; and
  
 (c)      any payment by way of settlement or compromise of any Tax Demand or Tax Liability of the Company in respect of any of the above;

		
	“Tax Authority”	  	HM Revenue and Customs or any other authority, body or official (whether in the United Kingdom or elsewhere) competent to assess, demand, impose, administer or collect

  

 73 

			
	 	  	 Tax or make any decision or ruling on any matter relating to Tax and:
  
 (a)      in the case of inheritance tax, any person who, pursuant to
section 212 Inheritance Tax Act 1984, holds any power to raise an amount of tax by sale, mortgage of, or a terminable charge on, any property or any part of it; and
  
 (b)      in the case of any statutory indemnity or right to recovery,
any person having the benefit of the indemnity or right to recovery;

		
	“Tax Demand”	  	 any notice, demand, assessment, letter or other document issued or other action taken by or on behalf of any Tax Authority (or any return or other
document prepared or to be prepared by or on behalf of the Company) indicating that:
  
 (a)      the Company or the Buyer has or may have a liability to make a payment of or in respect of
Tax; or
  
 (b)      any Relief is, may be or has been (in whole or in part) lost, set-off or used; or
  
 (c)      any of the assets of the Company or the Shares are subject to any charge or any power to
raise an amount of inheritance tax by sale or mortgage of, or a terminable charge on, these assets or any part of them resulting from or in consequence of any liability to inheritance tax, and in respect of which a Tax Claim may be made;
and

  

 74 

			
	“Tax Liability”	  	the meaning ascribed to it in paragraph 2.1 of this part 1.

  

	2.	Tax interpretation 

  

	2.1	In this schedule reference to a “Tax Liability” includes: 

  

	 	2.1.1	a liability to make any actual payment or increased payment of or in respect of Tax (whether or not such liability is a primary liability and whether or not the person so liable has
or may have any right of indemnity or reimbursement (statutory or otherwise) against any other person); 

  

	 	2.1.2	the loss, use or set off of any Relief which has been taken into account in computing, or in obviating the need for, any provision for Tax or deferred tax in the Completion Accounts
or which is reflected or shown as an asset in the Completion Accounts; 

  

	 	2.1.3	the use or set off of any Relief which arises in respect of an Event occurring or period ending after Completion where the use or set off of that Relief has the effect of reducing
or eliminating any Tax Liability of the Company which would otherwise have given rise to a Tax Claim for which the Seller would have been liable; 

  

	 	2.1.4	the enforcement or exercise of any mortgage or charge or power of sale over any of the Shares or over any assets of the Company in connection with the payment of any amount of
inheritance tax, 

  
 provided that:

  

	 	2.1.5	in any case falling within paragraphs 2.1.2 or 2.1.3 of this part 1, where the Relief lost, used or set off would have operated as a deduction from gross income, profits or gains,
the Tax Liability shall be treated as being equal to the amount of the Relief multiplied by the top rate of corporation tax payable by companies generally in force at the date of Completion (where the Relief has been lost) or at the date when the
Relief is used or set off; 

  

	 	2.1.6	in any case falling within paragraph 2.1.4 of this part 1, the Tax Liability shall be treated as being equal to the amount of inheritance tax which is or is liable to be paid out of
the proceeds of enforcement or exercise of the mortgage, charge or power of sale together with the amount of any costs or expenses incurred in connection with such enforcement or exercise which are liable to be paid out of those proceeds.

  

 75 

	2.2	In interpreting and applying this schedule: 

  

	 	2.2.1	references to a part are references to one of parts 1 to 4 of this schedule; 

  

	 	2.2.2	any reference to any Event occurring or to anything being the case includes any Event which is deemed to occur and anything which is deemed to be the case for Tax purposes;

  

	 	2.2.3	any reference to an Event occurring on or before Completion includes a series or combination of Events one or more of which occur on or occurred before Completion;

  

	 	2.2.4	any reference to income, profits or gains earned, accrued or received or having arisen includes income, profits or gains deemed to be or treated as being earned, accrued or received
or as having arisen for any Tax purposes; 

  

	 	2.2.5	any reference to any form of Tax or Relief which exists in the United Kingdom includes a reference to any equivalent or substantially equivalent Tax or Relief in any other relevant
country or Tax jurisdiction; 

  

	 	2.2.6	any reference to an Event occurring “in the ordinary course of the Company’s business” in this schedule shall not include: 

  

	 	2.2.6.1	any transaction or arrangement or series of transactions or arrangements which relate to or involve the acquisition or disposal of an asset or the supply of services (including the
lending of money, or the hiring or licensing of tangible or intangible property) which is not entered into on arm’s length terms; 

  

	 	2.2.6.2	any transaction or arrangement or series of transactions or arrangements which relate to or involve any company becoming or ceasing to be treated as a member of a group of companies
or as becoming or ceasing to be associated or connected with any other person for Tax purposes; 

  

	 	2.2.6.3	anything which involves, or leads directly or indirectly to, the receipt by a Company of any demand in respect of any Tax Liability of, or properly attributable to, another person
(other than another Company); 

  

 76 

	 	2.2.6.4	anything which relates to or involves the making of a distribution for Tax purposes, the creation, cancellation or reorganisation of share or loan capital, the creation,
cancellation or repayment of any intra-group debt; or 

  

	 	2.2.6.5	any transaction or arrangement or series of transactions or arrangements which include any step or steps having no commercial or business purpose other than the reduction, avoidance
or deferral of a Tax Liability; and 

  

	 	2.2.7	any reference to the last date on which a payment of Tax can be made or to the last date on which the Company is liable to make an actual payment of Tax (and cognate expressions)
shall be interpreted as meaning the last date on which a payment in respect of Tax can be made to the appropriate Tax Authority without incurring a liability (contingent or otherwise) to interest or a charge or penalty in respect of late payment of
such Tax. 

  

 77 

 Part 2: Tax Warranties 
  

	25.	General 

  

	25.1	All returns, computations, information, accounts and notices which are or have been required to be made or given by the Company for any Taxation purpose: 

 

	 	25.1.1	have been made or given within the requisite periods and on a proper basis and were when made and remain true and accurate; and 

  

	 	25.1.2	none of them is, or so far as the Seller is aware is likely to be, the subject of any queries or disputes with HM Revenue & Customs, Customs & Excise or other Tax
Authority. 

  

	25.2	The Company is not, nor has it been at any time within the last six years, involved in any dispute with or investigation, audit or discovery by any Tax Authority and so far as the
Seller is aware no such dispute, investigation, audit or discovery is pending, planned, threatened or likely to arise. 

  

	25.3	The Disclosure Letter gives full details of all matters relating to Taxation in respect of which the Company (either alone or jointly with any other person) at the date of this
Agreement has an outstanding entitlement: 

  

	 	25.3.1	to make any claim (including a supplementary claim) for relief under any Taxation statute; 

  

	 	25.3.2	to make any election for one type of relief, or one basis, system or method of Taxation as opposed to another; 

  

	 	25.3.3	to make any appeal (including a further appeal) against any assessment to Taxation; 

  

	 	25.3.4	to make any application for the postponement of, or the payment by instalments of, any Taxation; or 

  

	 	25.3.5	to disclaim or require the postponement of any allowance or relief; 

  
 or in respect of which the Company is required to make a return or provide information to the relevant Tax Authority and in respect of which the time for
making that return or providing that information will expire on or after the date of this Agreement. 
  

	25.4	No accounting period of the Company for corporation tax purposes has ended, and the Company has not made any distribution within the meaning of section 209 ICTA, since the Accounts
Date. 

  

 78 

	25.5	The provisions or reserve for Taxation appearing in the Accounts are sufficient (on the basis of the rates of Taxation current at the date of this Agreement) to cover all Taxation
for which the Company was at the Accounts Date or may after that date become, or have become, liable to pay or account on, or in respect of or by reference to, any profits, gains or income (whether deemed or actual) for any period ended on or before
the Accounts Date, or in respect of any distribution or transaction made or entered into, or deemed made or entered into, on or before the Accounts Date. 

  

	25.6	The Company: 

  

	 	25.6.1	has duly and punctually paid all Taxation which it has become liable to pay; 

  

	 	25.6.2	has duly deducted, withheld or collected for payment (as appropriate) all Taxation due to have been deducted, withheld or collected for payment and has accounted for or paid all
such Taxation to the relevant Tax Authority, including without limitation pursuant to sections 42A, 43, 118-118K, 119, 123,129, 348, 349, 350, 524, 555-558, 582, 733 and 737 ICTA; and 

  

	 	25.6.3	is not and has not at any time within the last six years been liable to pay interest on or penalties in respect of any unpaid Taxation or default in respect of any Taxation matter.

  

	25.7	In respect of the period starting immediately after the Accounts Date, the Company will not have any liability for Taxation which has not either been paid or is provided for in the
Accounts, other than Taxation on profits realised in the ordinary course of trading. 

  

	25.8	The Company is not nor is it likely to become liable to pay, or make reimbursement or indemnity in respect of, any Taxation (or amounts corresponding to Taxation) in consequence of
the failure by any other person to discharge that Taxation within any specified period or otherwise (including without limitation liability under sections 767A, 767AA and 777 (8) ICTA, sections 189, 190 and 191 TCGA, where that Taxation relates
to a profit, income or gain, transaction, event, omission or circumstance arising, occurring or deemed to arise or occur (whether wholly or partly) on or before the date of this Agreement. 

  

	25.9	No Tax Authority has agreed to operate any special arrangement (being an arrangement not based on a strict and detailed application of the relevant legislation) in relation to the
affairs of the Company, so far as the Seller is aware the Company has not taken any action which would or might alter, prejudice or in any way disturb any arrangement or agreement which it has negotiated with any Tax Authority nor so far as the
Seller is aware will any transaction carried out pursuant to this Agreement have such an effect. 

  

 79 

	25.10	All payments under the Corporation Tax (Instalment Payments) Regulations 1998 which have become due have been paid in the correct amount on or before the due date.

  

	25.11	The Company has sufficient records to permit accurate calculation of the amounts falling due under the Corporation Tax (Instalment Payments) Regulations 1998 after the date of this
Agreement insofar as such amounts relate to periods falling wholly or partly prior to the date of this Agreement and the Disclosure Letter sets out the due dates of any payments which will become due after the date of this Agreement under the
Corporation Tax (Instalment Payments) Regulations 1998 in respect of such period. 

  

	25.12	The Company has all necessary records to calculate any Tax liability or relief or to otherwise determine the Tax consequences that would arise on any disposal or on the realisation
of each asset owned by it at the Accounts Date, or acquired since the Accounts Date but before Completion. 

  

	26.	Employment and Employee Share Arrangements 

  

	26.1	The Company has complied with all regulations made for the purposes of PAYE and national insurance contributions and has kept complete, accurate and up-to-date records and other
documents as appropriate or required for those purposes. 

  

	26.2	The Company is not under an obligation to pay nor has it since the Accounts Date paid or agreed to pay any compensation for loss of office or any gratuitous payment not fully
deductible in computing its income for the purpose of corporation tax. 

  

	26.3	The Company does not participate in or operate any give as you earn scheme under section 713 ITEPA or any other payroll giving scheme under part 12 ITEPA or any profit-related pay
scheme. 

  

	26.4	The Disclosure Letter sets out with express reference to this warranty full details of all current dispensations and notices granted by HM Revenue & Customs relating to the
Company under sections 144 and 166 ICTA and sections 65 and 96 ITEPA and full details of any annual settlement arrangements. 

  

	26.5	The Shares are neither conditional shares nor convertible shares within the provisions of sections 140A to 140D ICTA. 

  

	26.6	The Company has not made any joint elections to transfer the liability for employer’s secondary Class 1 national insurance contributions pursuant to section 4(4)(a) Social
Security Contributions and Benefits Act 1992 onto the employee. 

  

 80 

	27.	VAT 

  

	27.1	The Company is a taxable person and is registered for the purposes of VAT and its registration is not subject to any conditions imposed by or agreed with HM Revenue &
Customs. The Company is not (nor are there circumstances by virtue of which it may become) under a duty to make monthly payments on account under the Value Added Tax (Payments on Account) Order 1993. 

  

	27.2	The Company has complied at all times with the statutory requirements, regulations, notices, orders, directions or conditions relating to VAT, including the terms of any agreement
made with HM Revenue & Customs. The Company has obtained, maintained and preserved complete, accurate and up to date records as required for the purposes of VAT. 

  

	27.3	The Company is not, nor has it at any time within the last six years been liable to any penalty or surcharge, or to the operation of any penal provision under any enactment relating
to VAT. The Company has not been required by the Commissioners of Customs & Excise to give security under schedule 11 VATA or otherwise. 

  

	27.4	The Company is not nor has it been treated for VAT purposes as a member of any group of companies and no application for it to be so treated has been made at any time.

  

	27.5	No transaction or arrangement has been effected as a result of which the Company is or may be liable for any VAT chargeable against, or as agent for, any other person; and the
Company is not, and has not agreed to become, an agent, manager or factor for the purposes of VATA of any person. 

  

	27.6	The Company has not made a claim for bad debt relief under section 36 VATA, and there are no circumstances whereby such a claim could be made. 

  

	27.7	All supplies made by the Company in the current prescribed accounting period for VAT purposes are taxable and not exempt supplies. 

  

	27.8	The Company has no outstanding entitlement to make any claim for repayment supplement or recovery of overpaid VAT under sections 78 to 80 VATA. 

  

	27.9	The Company is not bound nor has agreed to become bound by any lease, tenancy or licence in the case of which under its terms or by statute the Company is or could become liable to
pay VAT as a result of the making of an election to waive exemption under schedule 10 to VATA and the Company has not agreed with any person to not elect to waive exemption from VAT under schedule 10 to VATA in respect of any land or buildings in
which the Company has an interest. 

  

 81 

	27.10	In the case of each capital item (if any) within the capital goods scheme (as described in Part XV of the Value Added Tax Regulations 1995) owned by the Company at the date of this
Agreement in relation to which a liability under the capital goods scheme has arisen or could in future arise on the Company, the Disclosure Letter sets out: 

  

	 	27.10.1	complete and accurate particulars of past adjustments under the capital goods scheme; and 

  

	 	27.10.2	complete and accurate particulars of all matters to date which could be relevant in determining future adjustments under the capital goods scheme. 

  

	27.11	No transactions or arrangements involving the Company have taken place or are in existence which are such that a direction has been or could be made under paragraph 1 of schedule 6
or paragraph 1 of schedule 7 VATA (supplies between connected parties). 

  

	27.12	The Company has not been required to make any disclosures under the Value Added Tax (Disclosures of Avoidance Schemes) (Designations) Order 2004. 

  

	28.	Real Property 

  

	28.1	The Company has not at any time acquired any leasehold property upon such terms that the grantor of the lease could be deemed to have foregone any premium or additional premium, nor
taken any assignment of a lease granted upon such terms. 

  

	28.2	The Company has not entered into any transactions to which the provisions of sections 34, 35, 36, 779 or 780 ICTA (premiums and leaseback or reconveyance of land) have been or could
be applied. 

  

	28.3	The Company has not been a party to or otherwise involved in any transaction to which the provisions of section 776 and/or section 777 ICTA have been or could be applied, or has
acquired any land or any property deriving its value from land with the sole or main object of realising a gain on the disposal of the land. 

  

	29.	Chargeable Gains 

  

	29.1	The book value of each of the capital assets of the Company in or adopted for the purposes of the Accounts of the Company does not exceed the amount deductible under section 38 TCGA
(excluding any indexation allowance. 

  

	29.2	No asset owned or agreed to be acquired by the Company (other than plant and machinery in respect of which it is entitled to capital allowances) is a wasting asset within section 44
TCGA. 

  

 82 

	29.3	The Disclosure Letter sets out full particulars of any claims or elections by the Company under sections 23, 24, 152 to 158, 161, 162, 165, 175 or 247 TCGA or under any other
provision which would affect the amount of the chargeable gain or allowable loss which would but for such claim arise on a disposal of any of its assets. 

  

	29.4	The Company is not entitled to the benefit of any life assurance policy or any interest in any such policy or a contract for a deferred annuity on the life of any person, the
disposal of which would give rise to a chargeable gain. 

  

	29.5	No chargeable gain will accrue to the Company on the disposal of any debt owed to it. 

  

	29.6	The Company is not entitled to any capital loss to which the provisions of section 18(3) TCGA (connected persons) are applicable. 

  

	29.7	The Company has not at any time within the last six years disposed of or acquired any asset in circumstances such that the provisions of sections 17 or 19 TCGA could apply to that
disposal or acquisition (transactions not at arm’s length). 

  

	29.8	The Company has not been a party to or otherwise involved in any transaction to which sections 29 to 34 TCGA (value shifting) have been or could be applied.

  

	29.9	The Company has not issued any share capital to which the provisions of section 249 ICTA or section 142 TCGA (stock dividends) have been or could be applied, nor does it own any
such share capital. 

  

	29.10	The Company has not been a party to any transaction to which the provisions of sections 176 or 177 TCGA (depreciatory transactions), 125 TCGA (transfers at an undervalue) or 282
TCGA (gifts) have been or could be applied. 

  

	29.11	The Company has not been a party to or otherwise involved in any transaction to which sections 135 to 138A TCGA have been or could be applied. 

  

	30.	Groups 

  

	30.1	The Company is not, and has never been, a member of a group of companies for the purposes of Tax. 

  

	31.	Close Companies 

  

	31.1	The Company is not nor has it been a close company as defined in section 414 ICTA (Close companies) or a close investment-holding company as defined in section 13A ICTA (Close
investment holding companies). 

  

 83 

	31.2	No distribution within section 418 ICTA (payments, etc. to participators and associates) has been made by the Company, and no such distribution will be made prior to Completion.

  

	31.3	No loan or advance or debt within section 419 ICTA (loans to participators etc.) or section 422 ICTA (extension of section 419 to loans by controlled companies) has been incurred,
made or agreed to be made by the Company, and the Company has not since the Accounts Date released or written off the whole or part of the debt in respect of any such loan or advance. 

  

	32.	Capital Allowances 

  

	32.1	No balancing charge under CAA (or other legislation relating to any capital allowances) would be made on the Company on the disposal of any pool of assets (that is to say, all those
assets expenditure relating to which would be taken into account in computing whether a balancing charge would arise on a disposal of any other of those assets) or of any asset not in such a pool, on the assumption that the disposals are made for a
consideration equal to the book value shown in or adopted for the purpose of the Accounts for the assets in the pool or (as the case may be) for the asset. 

  

	32.2	The Disclosure Letter contains full details of all disclaimers of capital allowances and writing down allowances on plant and machinery and of any reduction in initial allowances on
industrial or agricultural buildings. 

  

	32.3	The Company has notified its Inspector of Taxes under section 118 Finance Act 1994 of all expenditure incurred which qualifies for plant and machinery allowances.

  

	32.4	Since the Accounts Date, the Company has not done, omitted to do, agreed to do or permitted to be done, any act as a result of which there may be made a balancing charge, or any
disposal value may fall to be brought into account or there may be any recovery of excess relief under the CAA (or any other legislation relating to any capital allowances). 

  

	32.5	Save as disclosed in the Disclosure Letter, the Company has not made any claim for capital allowances in respect of any asset which is leased to or from, or hired to or from, the
Company and no election affecting the Company has been made, or agreed to be made, under section 177 or section 183 CAA in respect of any such assets. 

  

	32.6	Sections 196-199 CAA do not apply to any fixtures acquired by the Company for a capital sum so as to determine the disposal value of the seller of the fixture.

  

 84 

	32.7	No asset, expenditure on which by the Company has qualified for a capital allowance under Part I CAA, has at any time since that expenditure was incurred, been used otherwise than
as an industrial building or structure. 

  

	32.8	The Company does not own any long life assets as defined by section 91 CAA and has not made any election under sections 83(6) and 85 CAA (short-life assets).

  

	32.9	In respect of all plant and machinery held by the Company under any lease: 

  

	 	32.9.1	all those assets have, at all relevant times, been used for a qualifying purpose for the purposes of sections 122 to 125 and 105 to 115 CAA; 

  

	 	32.9.2	all plant and machinery held by the Company under any lease is, and has at all times been, used for a qualifying purpose in the requisite period in accordance with Part 2 CAA and
was purchased by the relevant lessor as principal acting for itself and without intervention of any agent; and 

  

	 	32.9.3	no enquiry or investigation is being conducted by HM Revenue & Customs concerning the availability to the lessor of capital allowances in respect of the plant and machinery
concerned. 

  

	33.	Foreign 

  

	33.1	The Company: 

  

	 	33.1.1	has never been resident for tax purposes in any jurisdiction other than the United Kingdom; 

  

	 	33.1.2	has never had a branch, agency, place of business, permanent establishment or other presence for Taxation purposes outside the United Kingdom; and 

  

	 	33.1.3	is not, nor has it at any time within the last six years been, a dual resident company within the meaning of section 404(4) ICTA and the Company has not been a party to a
transaction to which section 404 ICTA or any other provision (including any exclusion from a provision) relating to dual resident companies could apply. 

  

	33.2	The Company has not been a party to any transaction to which the provisions of sections 135 to 138 Finance Act 1993 (exchange gains and losses) have been or could be applied.

  

	33.3	The Company has not received or become entitled to any income which is “unremittable income” within the meaning of section 584 ICTA, nor has any gain accrued to the
Company to which the provisions of section 279 TCGA could apply and the Company has not made a transfer to which section 723 ICTA could apply. 

  

 85 

	33.4	The Company has not entered into any transaction or agreed to carry out any transaction which is, or would be, unlawful under sections 765 to 767 ICTA. Details of any special
consents granted under section 765 are contained in the Disclosure Letter, all conditions attached to such consents have been complied with and such transactions were carried out as described in the application for such consent.

  

	33.5	No circumstances have occurred which could give rise to a liability on the Company under section 132 Finance Act 1988 or sections 185 or 191 TCGA nor has the Company been party to
any election under section 187 TCGA (deferral of gains tax on emigration of subsidiary). 

  

	33.6	The Company has not received, nor is it entitled to receive, foreign loan interest on which double taxation relief will or may be restricted under the provisions of section 798
ICTA. 

  

	33.7	The Company is and always has been exempt from the provisions of section 770, 770A or schedule 28AA ICTA or equivalent legislation or legal principles in any other jurisdiction have
been or could be applied thereto. The Company is not nor has it been, involved in any other enquiry in any jurisdiction in relation to the adjustment of profits of associated enterprises for taxation purposes. 

  

	33.8	The Company has not received any dividend from overseas companies in respect of which it would not be entitled to receive full credit for underlying tax 

  

	34.	Tax Avoidance 

  

	34.1	The Company has not entered into any transaction to which the provisions of sections 781 to 785 ICTA have been or could be applied. 

  

	34.2	The Company has not been a party to or otherwise involved in any transaction, scheme or arrangement to which the provisions of sections 135, 136, 139, 140A to 140C TCGA or sections
703 to 709 ICTA could apply, other than transactions in respect of which all necessary clearances have been obtained on the basis of complete and accurate disclosure to HM Revenue & Customs of all material facts and considerations material
to be known to HM Revenue & Customs. 

  

	34.3	Any such consent or clearance as is mentioned above is valid and effective and any transaction for which such consent or clearance has previously been obtained has been carried into
effect (if at all) only in accordance with the terms of the relative application and consent or clearance. 

  

 86 

	34.4	The Company has not entered into any transaction or series of transactions, scheme or arrangement of which the main purpose, or one of the main purposes, was the avoidance or
reduction of a Taxation liability or for which there was no commercial purpose. 

  

	35.	Inheritance Tax 

  

	35.1	The Company is not liable, and there are no circumstances in existence as a result of which it may become liable, to be assessed to inheritance tax or any other Taxation as donor or
donee of any gift, or transferor or transferee of value and there are no other circumstances by reason of which any liability in respect of inheritance tax has arisen or could arise in the Company. 

  

	35.2	There are no circumstances under which any power within section 212 Inheritance Tax Act 1984 could be exercised in relation to, and there is no Inland Revenue charge within the
meaning of section 237 Inheritance Tax Act 1984 attaching to or over, any shares or securities in or assets of the Company and there are no circumstances which could lead to any such charge arising in the future. 

  

	35.3	There has been no alteration of the share capital of the Company within section 98 Inheritance Tax Act 1984 (Effect of alteration of capital, etc). 

  

	36.	Stamp Taxes 

  

	36.1	There are no circumstances or transactions to which the Company is, or has been, a party which may result in the Company becoming liable to or accountable for stamp duty reserve tax
or any penalty in respect of such stamp duty reserve tax. 

  

	36.2	All documents to which the Company is a party and/or which relate to or are necessary to prove the title of the Company to any asset owned or possessed by it and/or contain material
rights on the part of the Company or on which the Company may need to rely are in the United Kingdom and have been duly stamped after disclosure of all material matters to HM Revenue & Customs. 

  

	36.3	The Company has not made any claim for relief or exemption under section 42 Finance Act 1930, section 76 Finance Act 1986, section 151 Finance Act 1995 or stamp duty land tax under
schedule 7 Finance Act 2003 in respect of any interest in UK land or buildings which was transferred or granted to it at any time within the last six years. 

  

	36.4	The Company does not own any interest in UK land or buildings which is evidenced by an uncompleted contract. 

  

 87 

	36.5	The Company has paid all stamp duty land tax which it is liable to pay and has made all land transaction returns it is obliged to make within 30 days of the effective date of the
transaction. 

  

	37.	Loans, Interest and Miscellaneous 

  

	37.1	There has been no major change in the nature or conduct of any trade carried on by the Company and the scale of activities of any trade carried on by the Company has not become
small or negligible within the meaning of sections 245, 768, 768A or 768B ICTA at any time within the last four years. 

  

	37.2	The Company has not at any time capitalised, or agreed to capitalise, in the form of shares or debentures, any profits or reserves of any class or description nor has it issued any
share capital as paid up (otherwise than by the receipt of new consideration as defined in section 254(1) ICTA) nor has it passed or agreed to pass any resolution to do so. 

  

	37.3	No securities or equity notes (within the meaning of section 254(1) and section 209(9) respectively ICTA) issued by the Company and remaining in issue were issued in such
circumstances that the interest payable on them falls or has at any time fallen to be treated as a distribution under section 209 ICTA. 

  

	37.4	No rents, interest, annual payments, or other sums of an income nature, paid or payable by the Company, or which the Company is under an obligation to pay in the future, are or may
be wholly or partially disallowable as deductions or charges in computing profits or against profits for the purposes of corporation tax by reason of the provisions of sections 74, 79, 79A, 125, 338, 339, 577, 577A, 779 to 784 or 787 ICTA, Chapter
II of Part IV of the Finance Act 1996 or otherwise. 

  

	37.5	The Company has not at any time issued relevant discounted securities (within schedule 13 Finance Act 1996) or any qualifying corporate bonds (within section 117 TCGA).

  

	37.6	All interest, discounts and premiums payable by the Company in respect of its loan relationships within the meaning of Chapter II of Part IV of the Finance Act 1996 are capable of
being brought into account by the Company as a debit for the purposes of that Chapter as and to the extent that they are from time to time recognised in the Company’s accounts (assuming that the accounting policies and methods adopted for the
purpose of the Accounts continue to be so adopted). 

  

	37.7	The Company has not been concerned in, or been a party to, any transaction for which any relief has been given under sections 213 to 218 ICTA (demergers), or has made or received a
chargeable payment as defined in those sections. 

  

 88 

	37.8	No government investment in the Company has been written off for the purposes of section 400 ICTA and full particulars of all such government investments are set out in the
Disclosure Letter. 

  

	37.9	No claims for relief from income tax have been, or will be, made in respect of shares in the capital of the Company under the Enterprise Investment Scheme or the Business Expansion
Scheme and the Company is not a qualifying issuing company for the purposes of the Corporate Venturing Scheme. 

  

	38.	Intangible Fixed Assets 

  

	38.1	No debits or credits would arise for the Company pursuant to schedule 29 Finance Act 2002 if any intangible fixed asset of the Company was disposed of for a consideration equal to
the book value shown in or adopted for the purpose of the Accounts. 

  

	38.2	The Company has not made and is not entitled to make any claim to have the cost for Taxation purposes of any intangible fixed asset reduced by reference to the proceeds of
realisation of any other intangible fixed asset. 

  

	38.3	The Accounts have been prepared in accordance with UK generally accepted accounting practice and bring into account for Taxation purposes debits under paragraphs 8 (Expenditure
written off as it is incurred) or 9 (Writing down on accounting basis) of schedule 29 Finance Act 2002. 

  

 89 

 Part 3: Tax Covenant 
  

	1.	Covenant to pay 

  

	1.1	Subject as provided in this schedule, the Seller covenants with the Buyer to pay to the Buyer an amount equal to any Tax Liability of the Company arising directly or indirectly in
consequence of any of the following: 

	 	1.1.1	any Event which occurred on or before Completion; 

  

	 	1.1.2	any income, profits or gains earned, accrued, received or which arose on or before Completion; 

  

	 	1.1.3	the Company being or becoming liable in consequence of the failure by any other company: 

  

	 	1.1.3.1	which has at any time (whether before or after Completion) been a member of a group (as defined for any relevant Tax purposes) of which the Company has at any time prior to
Completion been a member; or 

  

	 	1.1.3.2	which is or has at any time (whether before or after Completion) been under the control of the Seller or any person or persons that directly or indirectly controlled the Company
prior to Completion; or 

  

	 	1.1.3.3	with which the Company has otherwise been connected or associated at any time prior to Completion, 

  
 to discharge Tax within a specified period or otherwise; 
  

	 	1.1.4	the Company being or becoming liable in consequence of the failure by any person (in relation to any inheritance tax liability (whether such liability arises before or after
Completion) which directly or indirectly relates to a transfer of value occurring on or prior to Completion) to discharge Tax within a specified period or otherwise; 

  

	 	1.1.5	the Company being or becoming liable to make a payment of Tax in consequence of any person other than the Company, the Buyer or any person who controls, or is controlled by, the
Buyer (“control” having the meaning ascribed to it in section 840 ICTA) making a payment after Completion (otherwise than where directed to do so by, or with the express written agreement of, the Buyer or the Company) to any person to the
extent that, and in circumstances where, such payment can reasonably be taken to constitute remuneration for acts undertaken for, or service rendered to, the Company by any current or former officer or employee of the Company during any period
ending on or prior to Completion; 

  

 90 

	 	1.1.6	the failure of the Company on or prior to Completion to fully comply with all regulations made for the purposes of PAYE and national insurance contributions; or

  

	 	1.1.7	any Event that occurs pursuant to, or arises by reason of, the Hive-Across Agreement. 

  

	1.2	Subject as provided in this schedule, the Seller covenants with the Buyer to pay to the Buyer an amount equal to: 

  

	 	1.2.1	any Tax Liability of the Company or the Buyer (where such Tax Liability relates to an amount of inheritance tax) arising in consequence of; or 

  

	 	1.2.2	any depletion in or reduction in value of the assets or increase in the liabilities of the Company or the Buyer arising as a result of, 

  
 any charge on any of the Shares or on any of the assets of the Company
relating to unpaid inheritance tax or any power to raise an amount of inheritance tax by sale or mortgage of, or terminable charge on, any of the Shares or any of the assets of the Company (or any part of them): 
  

	 	1.2.3	where such charge or power exists at Completion; or 

  

	 	1.2.4	where the liability in respect of inheritance tax is payable as a result of: 

  

	 	1.2.4.1	the failure of any person to pay an amount in respect of inheritance tax; or 

  

	 	1.2.4.2	the death of any person within seven years after a transfer of value (or a deemed transfer of value); 

  
 provided that the transfer of value (or deemed transfer of value) to which the inheritance tax liability relates
occurred on or prior to Completion. 
  

	1.3	Subject as provided in this agreement, the Seller covenants with the Buyer to pay to the Buyer an amount equal to all costs and expenses reasonably and properly incurred or payable
by the Buyer or the Company in connection with or in consequence of any Tax Liability, Tax Claim or Tax Demand payable by the Seller. 

  

	1.4	In determining for the purposes of this paragraph 1 whether a charge on or power to sell, mortgage or charge any of the Shares or assets of the Company exists at any time and in

  

 91 

 determining the amount of the Tax Liability arising, the fact that any inheritance tax is not yet payable
or may be paid by instalments shall be disregarded and such inheritance tax shall be treated as becoming due and a charge or power to sell, mortgage or charge as arising on the date of the transfer of value or other date or event on or in respect of
which it becomes payable or arises. 
  

	1.5	The provisions of section 213 Inheritance Tax Act 1984 shall not apply to any payments falling to be made pursuant to a Tax Claim. 

  

	1.6	Any payment made by the Seller to the Buyer pursuant to this schedule shall, so far as possible, be a reduction in or refund of the consideration payable or paid by the Buyer to the
Seller pursuant to this Agreement to the extent permissible by law. 

  

 92 

 Part 4: Miscellaneous, including exclusions and limitations, conduct of claims and payments

  

	1.	Corresponding benefit 

  

	1.1	Where: 

  

	 	1.1.1	a Tax Liability of the Company has been discharged and has resulted in a Relief for the Company which would not otherwise have arisen (a “Relevant Relief”); and

  

	 	1.1.2	the Seller has made a payment to the Buyer in respect of such Tax Liability under either the Tax Covenant or the Tax Warranties, 

  
 upon the Company utilising the Relevant Relief, an amount equivalent to the
lesser of: 
  

	 	1.1.3	the amount of Tax which the Company would have been liable to pay but for the utilisation of the Relevant Relief (less an amount equal to the costs and expenses reasonably incurred
by the Buyer or the Company in obtaining the Relevant Relief); and 

  

	 	1.1.4	the amount paid by the Seller in respect of the Tax Liability giving rise to the Relevant Relief, 

  
 shall firstly be set off against any payment then due from the Seller pursuant to the Warranties or the Tax Covenant and to
the extent that no such payment is then due from the Seller, be refunded promptly by the Buyer to the Seller. 
  

	1.2	For the purposes of paragraph 1.1 of this part 4, the Company shall not be regarded as utilising a Relevant Relief until the last date upon which it would have been obliged to make
an actual payment of Tax (which it would otherwise have had to have paid but for the Relevant Relief) in order to avoid incurring any fine, penalty or interest in respect of unpaid Tax or, in the case or a Relevant Relief consisting of a right to
repayment of Tax, the date on which the Company receives cleared funds in respect of such repayment. 

  

	1.3	Nothing in this paragraph 1 of part 4 shall oblige the Company to utilise a Relevant Relief in priority to any other Relief then available to it or to maximise the amount of any
Relevant Relief and the Company shall for the purposes of this paragraph be deemed to use all other Reliefs then available to it, as permitted by law, as though the Relevant Relief did not exist, in priority to the Relevant Relief in determining
when the Relevant Relief is utilised but, subject to the above, the Company shall use its reasonable endeavours to utilise and maximise the Relevant Relief. 

  

 93 

	1.4	A payment pursuant to this paragraph 1 of part 4 shall be made three Business Days before the date on which the Company would have been liable to make the payment of Tax but for the
Relevant Relief. 

  

	1.5	The Seller shall be entitled to require, and the Buyer shall procure, that the Company’s auditors shall (at the Seller’s cost) certify the amount of any payment due under
this paragraph 1 of part 4. 

  

	2.	Third party recovery 

  

	2.1	If the Seller has paid an amount to the Buyer in respect of a Tax Liability (pursuant either to the Tax Covenant or the Tax Warranties) and the Company or the Buyer has received a
payment or obtained a reimbursement, refund, credit or set-off from any person (other than the Buyer or the Company) in respect of the Tax Liability or has (whether by operation of law, contract or otherwise) a right of reimbursement or refund
against any other person or persons (other than the Buyer or the Company) in respect of the Tax Liability, the Buyer shall: 

  

	 	2.1.1	notify the Seller as soon as reasonably practicable; and 

  

	 	2.1.2	in the case of a right of reimbursement or refund, if requested by the Seller and if indemnified and secured to the Buyer’s reasonable satisfaction against all reasonable and
proper costs and expenses and any Tax Liability or additional Tax Liability of the Buyer or the Company arising as a result of any action taken pursuant to this paragraph or otherwise, procure that the Company shall take reasonable steps to enforce
the right, keeping the Seller fully informed of any progress. 

  

	2.2	Where the Buyer or the Company receives an amount from a third party pursuant to paragraph 2.1 of this part 4, an amount equal to the lesser of: 

  

	 	2.2.1	the amount paid by the Seller under this schedule in respect of the Tax Liability in question save to the extent that such amount constitutes a reimbursement of the costs and/or
expenses reasonably and properly incurred by the Buyer or the Company in obtaining such amount from the Seller; and 

  

	 	2.2.2	the amount received by the Buyer or the Company from any third party pursuant to this paragraph less: 

  

	 	2.2.2.1	any costs and/or expenses reasonably and properly incurred by the Buyer or Company in obtaining such amount from such third party; and 

  

 94 

	 	2.2.2.2	any Tax which the Company or the Buyer reasonably anticipates will be payable in respect of such receipt (or any Tax which it is reasonably anticipated would have been payable in
respect thereof but for the availability of a Relief of the type described in paragraph 2.1.2 or 2.1.3 of part 1), 

  
 shall firstly be set off against any payment then due from the Seller pursuant to the Warranties or the Tax Covenant and to the extent that no such
payment is then due from the Seller, be refunded promptly by the Buyer to the Seller. 
  

	3.	Grossing-up of payments 

  

	3.1	Any amount payable by the Seller to the Buyer pursuant to a Tax Claim shall be paid free and clear of all deductions or withholdings whatsoever, save only as may be required by any
applicable law. 

  

	3.2	If any deduction or withholding is required by law to be made from any amount payable pursuant to a Tax Claim, the Seller shall be obliged to pay to the Buyer such increased amount
as will, after the deduction or withholding has been made, leave the Buyer with the same amount as it would have been entitled to receive in the absence of any such requirement to make a deduction or withholding. 

  

	3.3	In the event that any amount paid to the Buyer pursuant to a Tax Claim is or will be chargeable to Tax, the Seller shall be obliged to pay such increased amount as will, after
payment of the Tax, leave the Buyer with the same amount that would otherwise have been payable if Tax had not been so chargeable and for these purposes an amount shall be regarded as chargeable to Tax in circumstances where it would have been so
chargeable but for the use or set off of a Relief available to the Buyer. 

  

	4.	Due date for payment 

  

	4.1	Subject always to the provisions of this Agreement where the Seller becomes liable to make any payment pursuant to a Tax Claim in accordance with this Agreement, the due date for
the making of the payment shall be: 

  

	 	4.1.1	where the payment relates to a liability of the Company to make an actual payment of Tax, the later of three Business Days prior to the last date on which that payment of Tax can be
made and five Business Days after service of a notice of the Tax Demand on the Seller; 

  

	 	4.1.2	where the payment relates to the use or set off of a Relief, the later of three Business Days prior to the last date on which the Company would have been liable to make a payment of
Tax but for such use or set off and five Business Days after service of notice of the Tax Demand on the Seller by the Buyer; and 

  

 95 

	 	4.1.3	in any other case, the date falling five Business Days after the date of service of a notice of the Tax Demand on the Seller. 

  

	4.2	If following Completion any payment required to be made by the Seller pursuant to a Tax Claim is not made by the due date then interest shall be payable on the amount outstanding on
a daily basis compounded quarterly from the due date until the date when payment is actually made at the rate of 2% above the base rate from time to time of the Company’s bankers from time to time (or in the absence of such rate at such similar
rate as the Buyer shall select). 

  

	5.	Conduct of tax litigation 

  

	5.1	If following Completion any Tax Demand is received by or comes to the notice of the Buyer or the Company the Buyer shall, as soon as reasonably practicable, give or procure to be
given to the Seller written notice of the Tax Demand provided that the giving of such notice shall not be a condition precedent to the liability of the Seller under this schedule in respect of the Tax Demand or otherwise. If any Tax Demand is
received by or comes to the notice of the Seller, the Seller shall, as soon as reasonably practicable, give the Buyer notice of the Tax Demand. 

  

	5.2	If so requested in writing by the Seller and if the Seller shall indemnify and secure the Company and the Buyer, to the Buyer’s reasonable satisfaction, against the relevant
Tax Liability and any additional Tax Liability (including interest and penalties in respect of Tax) and all reasonable and proper costs and expenses which they may incur, the Seller shall be entitled to take over the conduct of all proceedings
relating to the Tax Demand in question and, if necessary, the Buyer shall take, or shall procure that the Company takes, such action and gives such information and assistance in connection with the affairs of the Company as the Seller may reasonably
request to dispute, resist, appeal or compromise the Tax Liability provided that: 

  

	 	5.2.1	the Buyer shall not be required and the Seller shall not be permitted to make or procure the making of a formal appeal to any tribunal, court, appellate body or judicial authority
unless the Seller, at its own expense and after disclosure of all relevant information and documents, obtains and delivers to the Buyer an opinion from appropriate counsel who has been approved for the purpose by the Buyer (such approval not to be
unreasonably withheld or delayed) and who has specialised in relevant Tax matters for a minimum of ten years that the appeal has a reasonable chance of success; 

  

 96 

	 	5.2.2	the Seller shall keep the Buyer and the Company fully informed as to the progress and consequences of such action and shall consult with the Buyer and the Company as to the action
to be taken; 

  

	 	5.2.3	the Seller shall make no settlement or compromise of the relevant Tax Liability which is likely to affect materially the future Tax of the Company or of the Buyer without the prior
approval of the Company or the Buyer (as may be appropriate); and 

  

	 	5.2.4	no material communication (written or otherwise) pertaining to the Tax Demand shall be sent to the relevant Tax Authority without having first been approved by the Buyer (such
approval not to be unreasonably withheld or delayed). 

  

	5.3	The Buyer or the Company shall, without reference to the Seller, be entitled to admit, compromise, settle, discharge or otherwise deal with a Tax Demand on such terms as it may, in
its absolute discretion, think fit and without prejudice to any right or remedy under this schedule or this Agreement: 

  

	 	5.3.1	if the Seller has not made the request and provided the indemnity and security referred to in paragraph 5.2 of this part 4 by the earlier of the following dates:

  

	 	5.3.1.1	the date being fifteen Business Days after the date on which notice of the Tax Demand was given pursuant to paragraph 5.1 or notice of the Tax Demand came to the attention of the
Seller; and 

  

	 	5.3.1.2	the date being five Business Days prior to the last date on which an appeal may be made against the Tax Liability to which the Tax Demand relates provided that the Seller has
had at least five Business Days’ notice of the Tax Demand; 

  

	 	5.3.2	if written notice is served on the Company or the Buyer by the Seller to the effect that it considers the Tax Demand should no longer be resisted; 

  

	 	5.3.3	if within the period of ten Business Days following the service of a written notice by the Buyer on the Seller requiring the Seller to clarify or explain the terms of any request
made under paragraph 5.2 of this part 4, no reasonably satisfactory written clarification or explanation is received by the Buyer within that period; 

  

	 	5.3.4	upon the expiry of any period prescribed by applicable legislation for the making of an appeal against either the Tax Demand in question or the decision of any court or tribunal in
respect of any such Tax Demand, as the case may be; 

  

 97 

	 	5.3.5	if a Tax Authority alleges that while the Company was under the control of the Seller there was any act or failure to act by the Company or the Seller in connection with the Tax
Liability which constitutes fraud; 

  

	 	5.3.6	if the Seller commits any irremediable breach of their obligations referred to in paragraphs 5.2.2, 5.2.3 or 5.2.4 of this part 4; or 

  

	 	5.3.7	if the Seller commits any remediable breach of their obligations referred to in paragraphs 5.2.2, 5.2.3 or 5.2.4 of this part 4 and fail to remedy such breach within five Business
Days following the service on the Seller of a written notice by the Buyer specifying the breach and requiring it to be remedied. 

  

	6.	Filing of tax returns 

  

	6.1	The Buyer (or its duly authorised agents) shall after Completion be responsible (at the Company’s expense) for preparing (or procuring that the Company prepares) the
Company’s outstanding and future Tax returns and deal with all matters and correspondence relating thereto and the Seller shall provide the Buyer with such assistance as is reasonably necessary for the returns to be prepared and agreed with the
appropriate Tax Authority. 

  

	7.	Exclusions and limitations 

  

	7.1	The Seller’s liability in relation to any claim under the Tax Covenant shall be limited as described (mutatis mutandis) in paragraph 1.3 of schedule 5 (“Limitations on
Seller’s Liability”). 

  

	7.2	The Seller’s liability in relation to any claim under the Tax Warranties shall be limited as described (mutatis mutandis) in paragraphs 1.1 to 1.3 (inclusive) of schedule 5
(“Limitations on Seller’s Liability”). 

  

	7.3	The Seller shall not be liable in respect of any Tax Claim unless written notice of such claim is given to the Seller prior to the expiry of the period of sixty Business Days
following the seventh anniversary of the date of Completion. 

  

	7.4	The Seller shall not be liable in respect of any Tax Claim in respect of any Tax Liability to the extent that: 

  

	 	7.4.1	specific provision or reserve for such Tax Liability (excluding any provision or reserve for deferred taxation) is made in the Completion Accounts; or 

  

	 	7.4.2	the Tax Liability has fallen due and been paid in the period between the Accounts Date and Completion without cost or loss to the Buyer and arose in the ordinary course of the
Company’s business; or 

  

 98 

	 	7.4.3	it arises or is increased as a result of any increase in the rates of Tax announced and coming into force with retrospective effect after the date of Completion; or

  

	 	7.4.4	it arises or is increased as a result of any imposition of new Tax or the introduction of or change in any legislation or applicable law or the change in the published practice of
or concessions made by any Tax Authority announced and taking effect with retrospective effect after the date of Completion; or 

  

	 	7.4.5	it would not have arisen but for a transaction entered into or other voluntary act on the part of the Company or the Buyer after Completion which: 

  

	 	7.4.5.1	is neither in the ordinary course of the Company’s business, as carried on at the date of this Agreement nor pursuant to a legally binding obligation entered into before
Completion; 

  

	 	7.4.5.2	could reasonably have been avoided; and 

  

	 	7.4.5.3	the Buyer was aware would give rise to the Tax Liability; or 

  

	 	7.4.6	such liability arises or is increased by virtue of the failure or omission by the Company to make any claim, election, surrender or disclaimer or give any notice or consent to any
other matter or do any other thing after Completion (otherwise than at the request of the Seller), the making, giving or doing of which was taken into account or assumed in computing any provision or reserve for Tax in the Accounts and where
sufficient details of such claim, election, surrender, disclaimer, notice or consent are included in the Disclosure Letter with specific reference to this paragraph; or 

  

	 	7.4.7	such Tax Liability would not have arisen but for some Event occurring at the specific written request of the Buyer or its representatives; or 

  

	 	7.4.8	recovery has already been made in respect of the Tax Liability by the Buyer under the Tax Warranties, the Tax Covenant or any other provision of this Agreement; or

  

	 	7.4.9	it has been discharged or made good without cost or loss to the Buyer. 

  

 99 

 SCHEDULE 4 
  

Property 
  

	1.	Leasehold Property with unregistered title 

  

													
	 Present lessee (owner)

	  	Date of lease

	  	Parties

	 	Term

	  	 Current
 rental

	  	Short description

	  	Use

	Bananastock Limited	  	12 January 2005	  	Margaret Jill
Freeman (1)
Bananastock (2)	 	5 years from 12
January 2005	  	£ 32,646.75	  	The Stables and
West Barn,
Brightwell, Baldwin,
Oxfordshire	  	Offices

  

 100 

 SCHEDULE 5 
  

Limitations on Seller’s Liability 
  

	1.	FINANCIAL LIMITS 

  

	1.1	The Seller shall not be liable in respect of any Warranty Claim or a claim for breach of the Tax Warranties unless it has a liability in respect of that Warranty Claim or claim for
breach of the Tax Warranties in excess of £10,000. 

  

	1.2	The Seller shall not be liable in respect of any Warranty Claim or a claim for breach of the Tax Warranties unless it has an aggregate liability in respect of all Warranty Claims or
claims for breach of the Tax Warranties (excluding all Warranty Claims or claims for breach of the Tax Warranties for which the Seller has no liability by reason of paragraph 1.1) in excess of £75,000, and in such circumstances it shall be
liable for the full amount of all Warranty Claims and claims for breach of the Tax Warranties (excluding all Warranty Claims or claims for breach of the Tax Warranties for which the Seller has no liability by reason of paragraph 1.1).

  

	1.3	The aggregate liability of the Seller for all Warranty Claims, Tax Claims and claims under clause 9.10 of this Agreement shall not exceed £10,883,713 plus any further sums
payable by the Buyer in accordance with clause 5.1. 

  

	2.	TIME LIMITS 

  
 The Seller shall not be liable in respect of any Warranty Claim unless written notice of that Warranty Claim is given to the Seller on or before the date
falling 18 months after the Completion Date. 
  

	3.	SPECIFIC LIMITATIONS 

  

	3.1	The Seller shall not be liable in respect of a Warranty Claim: 

  

	 	3.1.1	to the extent that the matter giving rise to the Claim would not have arisen but for the passing of, or a change in, after the date of this Agreement, a law, rule, regulation,
published interpretation of the law or administrative practice of a government, governmental department, agent or regulatory body or an increase in the taxation rates or in position of taxation in each case not actually or respectively enforced at
the date of this Agreement; 

  

	 	3.1.2	to the extent of the matter giving rise to the Claim is an amount in respect of which the Buyer or any Associate of the Buyer (including any member of the Buyer’s Group) has
recovered from a third party, whether under a provision of applicable law, insurance policy or otherwise howsoever; 

  

 101 

	 	3.1.3	to the extent that such breach or claim arises as a result of any change, following completion, in the accounting basis or policies in accordance with which the Company values its
assets or calculated liabilities or any other change in accounting practice. 

  

	3.2	The Buyer is not entitled to recover for the same loss or amount more than once under this Agreement, the Hive Across Agreement or the Production Agreement or otherwise obtain
reimbursement or restitution more than once for the same loss or amount under this Agreement, the Hive Across Agreement or the Production Agreement. 

  

 102 

 SCHEDULE 6 
  

Completion Accounts 
  
 Part 1: Basis of Preparation of the Completion Accounts 
  
 The Completion Accounts shall be drawn up in accordance with the following: 
  

	1.	the following specific policies and adjustments: 

  

	1.1	Accounting Convention 

  
 The Completion Accounts shall be prepared under the historic cost convention. 
  

	1.2	Fixed Assets and Intangible Assets 

  
 Fixed Assets and Intangible Assets (which includes the image library) shall be valued at zero in the Completion Accounts. 
  

	1.3	Debtors 

  

	 	(i)	A specific bad debt provision will be raised for the full amount of any debtor balances that are disputed by the customer concerned. 

  

	 	(ii)	A general bad debt provision will be raised against aged debtors at Completion as appropriate based on the Company’s historic aged debtor recovery rate.

  

	1.4	Revenue recognition 

  

	 	(i)	Revenue shall only be recognised for goods and services provided by the Company or its agents prior to Completion. 

  

	 	(ii)	To the extent that daily sales data is not available for the month of Completion, revenue for the period before Completion (in the month of Completion only) shall be calculated by
pro rating the total revenue for the month of Completion. 

  

	 	(iii)	Any cash amounts received or receivable in respect of goods and services to be provided after Completion shall be treated as deferred income and included as a liability within Net
Current Assets. 

  

	1.5	Stock 

  

	 	(i)	Shall exclude any amounts in respect of the image library. 

  

	 	(ii)	Individual compact discs shall be valued at the lower of £1 and net realisable value. 

  

 103 

	1.6	Cash 

  
 The Cash balance per the nominal ledger shall be fully reconciled to the bank statements balances as at the Completion Date. Any un-reconciled debit balances shall be written off. 
  

	1.7	Balances with the Seller 

  
 Amounts receivable from the Seller or Associates will be recognised in the Completion Accounts to the extent paid by the time of delivery of the draft
Completion Accounts to the Seller. 
  

	1.8	Trade Creditors, accruals 

  

	 	(i)	An accrual will be made for all audit and accountancy fees relating to the pre Completion period by pro rating the cost incurred in the prior year. 

  

	 	(ii)	An accrual will be made for all of the Seller’s professional fees in respect of the transaction to the extent they are payable by the Company after Completion.

  

	 	(iii)	All staff salaries and wages (including PAYE, National Insurance, Statutory Sick Pay, Statutory Maternity Pay, employee and employer Pension contributions, amounts claimed by
directors in office prior to Completion and any other payroll related charges or deductions) and accrued but unused holiday pay will be accrued in full up to Completion. 

  

	 	(iv)	An accrual will be made for employee bonuses (including social security and any other Taxes thereon) earned prior to Completion. 

  

	 	(v)	An accrual will be made for all audit and accountancy fees relating to the pre Completion period by pro rating the cost incurred in the prior year. 

  

	 	(vi)	An accrual will be made for all commissions payable in respect of revenue based on actual commission rates stipulated in each commission agreement where applicable.

  

	 	(vii)	An accrual for all Tax payable in relation to periods pre-Completion. 

  

	1.9	Other liabilities and provisions 

  

	 	(i)	A full provision shall be included in Net Current Assets for dividends payable to the Seller which remain unpaid as at Completion. 

  

 104 

	 	(ii)	Provision shall be made for the estimated amount payable in respect of any litigation matters relating to pre completion events. 

  

	 	(iii)	Provision shall be made for any contingent liabilities relating to pre completion events. 

  

	1.10	Post-balance sheet events 

  
 Any adjusting post balance sheet events arising up to the date of delivery of the draft Completion Accounts shall be taken into account in the Completion
Accounts. 
  

	1.11	Asset reclassification 

  
 There shall be no reclassification of items treated as fixed assets in the Accounts to Net Current Assets and any similar items acquired since the
Accounts Date shall be classified as fixed assets in the Completion Accounts. 
  

	2.	to the extent not covered by paragraph 1, in accordance with generally accepted accounting principles and practices in the UK (which for the avoidance of doubt shall exclude
International Financial Reporting Standards) in force at the Accounts Date; and 

  

	3.	to the extent not covered by paragraphs 1 and 2, the other accounting policies, principles, practices, evaluation rules and procedures, methods and bases adopted by the Company in
preparation of the Accounts for the financial year ending on the Accounts Date. 

  

 105 

 Part 2: Net Current Asset Statement 
  

	To:	Ms C Yeulet 

 Henley House 
 Howe Road 
 Watlington 
 Oxfordshire OX49 5EL 
  
 and 
  
 Mr D Sinanan 
 SRLV 
 1 Conduit Street 
 London 
 W1S 2XA 
  
 Dear Madam 
  
 We refer to the agreement (“Agreement”) between Ms Yeulet and us dated
[                    ] 2005 providing for the sale to us of the entire issued share capital of Bananastock Limited. 
  
 We enclose a copy of the Completion Accounts (as defined in the Agreement) drawn up, in our
opinion, in accordance with part 1 of schedule 7 of the Agreement. 
  
 On the
basis of the Completion Accounts, the Net Current Asset Value (as defined in the Agreement) is equal to the sum of £[·]. 
  

	
	  

	 for and on behalf of

	 JupiterImages (UK) Limited

  

 106 

 Part 3: Format of Completion Accounts 
  
 Format of Completion Accounts (for illustrative purposes only) 
  
 Balance Sheet 
  

					
	 	  	 	  	£

	 Fixed Assets
	  	 	  	 
	 Tangible fixed assets
	  	 	  	X
	 Intangible fixed assets
	  	 	  	X
	 	  	 	  	

	 	  	A	  	X
	 	  	 	  	

	 Current Assets
	  	 	  	 
	 Stocks
	  	 	  	 
	 Raw materials and consumables
	  	 	  	X
	 Work in progress
	  	 	  	X
	 Finished goods and goods for resale
	  	 	  	X
	 Payments on account
	  	 	  	X
			
	 Debtors
	  	 	  	 
	 Trade debtors
	  	 	  	X
	 Other debtors
	  	 	  	X
	 Prepayments and accrued income
	  	 	  	X
			
	 Cash at bank and in hand
	  	 	  	X
	 	  	 	  	

	 	  	B	  	X
	 	  	 	  	

	 Current Liabilities
	  	 	  	 
	 Bank loans and overdrafts
	  	 	  	X
	 Payments received on account
	  	 	  	X
	 Trade creditors
	  	 	  	X
	 Other creditors including taxation and social security
	  	 	  	X
	 	  	 	  	

	 Accrual and deferred income
	  	 	  	X
	 	  	 	  	

	 	  	C	  	X
	 	  	 	  	

	 Net Current Assets Value
	  	D=B-C	  	X
			
	 Provisions for liabilities and charges
	  	E	  	            X
	 	  	 	  	

	 Net Assets
	  	F=A+D-E	  	X
	 	  	 	  	

  
 Note:
all amounts shall be shown as positive balances except where indicated. 
  

 107 

 Profit and Loss Account 
  

			
	 	  	£

	 Turnover
	  	X
	 Cost of sales
	  	(X)
		
	 Gross Profit
	  	 
	 	  	

	 	  	X / (X)
	 Administrative expenses
	  	(X)
	 	  	

	 Operating profit
	  	X / (X)
	 Other interest receivable and similar income
	  	X
	 Interest payable and similar charges
	  	(X)
		
	 Profit on ordinary activities before taxation
	  	 
	 	  	

	 	  	X / (X)
	 Tax on profit on ordinary activities
	  	X / (X)
	 	  	

	 Profit on ordinary activities after taxation
	  	X / (X)

  

 108 

					
	 SIGNED by
	  	)	  	 
	CATHERINE SARA YEULET	  	)	  	 /s/ Catherine Sara Yeulet

			
	SIGNED by	  	)	  	 
	 duly authorised on behalf of
	  	)	  	 /s/ Christopher S. Cardell

	JUPITERIMAGES (UK) LIMITED	  	)	  	 

  

 109

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