Document:

Security Agreement

 Exhibit 10.1(b) 
  
 SECURITY AGREEMENT 
  
 SECURITY AGREEMENT, dated as of September 19, 2005, between SPANSION LLC, a Delaware limited liability company (“Grantor”), and BANK OF
AMERICA, N.A., in its capacity as Agent for Lenders. 
  
 W I T N E
S S E T H: 
  
 WHEREAS, pursuant to that certain Credit Agreement
dated as of the date hereof by and among Grantor, Agent and Lenders (including all annexes, exhibits and schedules thereto, as from time to time amended, restated, supplemented or otherwise modified, the “Credit Agreement”), Lenders
have agreed to make the Loans and issue Letters of Credit on behalf of Grantor; 
  
 WHEREAS, in order to induce Agent and Lenders to enter into the Credit Agreement and the other Loan Documents and to induce Lenders to make the Loans and issue Letters of Credit as provided for in the Credit
Agreement, Grantor has agreed to grant a continuing Lien on the Collateral (as hereinafter defined) to secure the Obligations; 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. DEFINED TERMS. The following terms shall have the following respective meanings: 
  
 “Accounts” means all of the Grantor’s now owned or hereafter acquired or arising accounts, as defined in the UCC, including any
rights to payment for the sale or lease of goods or rendition of services, whether or not they have been earned by performance, and all medical receivables. 
  
 “Affiliate” means, as to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under
common control with, such Person or which owns, directly or indirectly, ten percent (10%) or more of the outstanding equity interest of such Person. A Person shall be deemed to control another Person if the controlling Person possesses, directly or
indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities, by contract, or otherwise. 
  
 “Blocked Account Agreement” means an agreement among Grantor, the Agent and a Clearing Bank, in form and
substance reasonably satisfactory to the Agent, concerning the collection of payments which represent the proceeds of Accounts or of any other Collateral. 

 “Cash Dominion Period” means a period of one or more days commencing upon (i) the
occurrence of Availability (as defined in the Credit Agreement) measuring less than $35,000,000 and ending upon (ii) the occurrence of Availability (as defined in the Credit Agreement) measuring more than $35,000,000 for a sixty (60) consecutive day
period. 
  
 “Chattel Paper” means all of the
Grantor’s now owned or hereafter acquired chattel paper, as defined in the UCC, including electronic chattel paper. 
  
 “Clearing Bank” means the Bank or any other banking institution with whom a Payment Account has been established pursuant to a Blocked
Account Agreement. 
  
 “Collateral” has the
meaning set forth in Section 2(a). 
  
 “Deposit
Accounts” means all “deposit accounts” as such term is defined in the UCC, now or hereafter held in the name of Grantor. 
  
 “Documents” means all documents as such term is defined in the UCC, including bills of lading, warehouse receipts or other documents of
title, now owned or hereafter acquired by the Grantor. 
  
 “Equipment” means all “equipment” as such term is defined in the UCC, now owned and hereafter acquired by Grantor, wherever located. 
  
 “General Intangibles” means all “general intangibles” as such term is defined in the UCC, now
owned or hereafter acquired by Grantor. 
  
 “Goods” means all “goods” as defined in the UCC (except Inventory and Equipment), now owned or hereafter acquired by Grantor, wherever located, including embedded software to the extent included in
“goods” as defined in the UCC (except Inventory and Equipment), manufactured homes, standing timber that is cut and removed for sale and unborn young of animals. 
  
 “Instruments” means all instruments as such term is defined in the UCC, now owned or hereafter acquired by
the Grantor. 
  
 “Inventory” means all
“inventory” as defined in the UCC, now owned or hereafter acquired by Grantor, wherever located. 
  
 “Investment Property” means all of the Grantor’s right title and interest in and to any and all: (a) securities whether certificated
or uncertificated; (b) securities entitlements; (c) securities accounts; (d) commodity contracts; or (e) commodity accounts. 
  
 “Letter-of-Credit Rights” means “letter-of-credit rights” as such term is defined in the UCC, now owned or hereafter acquired
by Grantor, including rights to payment or performance under a letter of credit, whether or not Grantor, as beneficiary, has demanded or is entitled to demand payment or performance. 
  

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 “Other Affiliate Account” means an Account arising in the ordinary course of the
Grantor’s business for certain intercompany transactions between the Grantor and any of its Affiliates other than for the sale of completed product by the Grantor to any such Affiliate. 
  
 “Payment Account” means each bank account established
pursuant to this Security Agreement, to which the proceeds of Accounts and other Collateral are deposited or credited, and which is maintained in the name of the Agent or the Grantor, as the Agent may determine, on terms acceptable to the Agent.

  
 “Person” means any individual, sole
proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, Governmental Authority, or any other entity. 
  
 “Supporting Obligations” means all supporting obligations as such term is defined in the UCC. 

 
 “UCC” means the Uniform Commercial Code, as in effect
from time to time, of the State of California or of any other state the laws of which are required as a result thereof to be applied in connection with the issue of perfection of security interests. 
  
 “Uniform Commercial Code jurisdiction” means any
jurisdiction that has adopted “Revised Article 9” of the UCC on or after July 1, 2001. 
  
 All other capitalized terms used but not otherwise defined herein have the meanings given to them in the Credit Agreement or in Annex A thereto. All other
undefined terms contained in this Security Agreement, unless the context indicates otherwise, have the meanings provided for by the UCC to the extent the same are used or defined therein. 
  
 2. GRANT OF LIEN. 
  
 (a) As security for all Obligations, the Grantor hereby grants to the Agent, for the benefit of the Agent and the Lenders, a continuing security interest
in, lien on, assignment of and right of set-off against, all of the following property and assets of the Grantor, whether now owned or existing or hereafter acquired or arising, regardless of where located: 
  
 (i) all Accounts; 
  
 (ii) all contract rights; 
  
 (iii) all Chattel Paper; 
  
 (iv) all Documents; 
  
 (v) all Instruments; 
  
 (vi) all Supporting Obligations and Letter-of-Credit Rights; 
  

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 (vii) all General Intangibles (other than Intellectual Property (as such term is defined below));

  
 (viii) all Goods; 
  
 (ix) all Investment Property; 
  
 (x) all money, cash, cash equivalents, securities and other property of any
kind of the Grantor held directly or indirectly by the Agent or any Lender; 
  
 (xi) all of the Grantor’s Deposit Accounts, credits, and balances with and other claims against the Agent or any Lender or any of their Affiliates or any other financial institution with which the Grantor
maintains deposits, including any Payment Accounts; 
  
 (xii) all
books, records and other property related to or referring to any of the foregoing, including books, records, account ledgers, data processing records, computer software and other property and General Intangibles at any time evidencing or relating to
any of the foregoing; and 
  
 (xiii) all accessions to,
substitutions for and replacements, products and proceeds of any of the foregoing, including, but not limited to, proceeds of any insurance policies, claims against third parties, and condemnation or requisition payments with respect to all or any
of the foregoing. 
  
 All of the foregoing, together with the Real Estate covered
by the Mortgage(s), all equity interests in Subsidiaries pledged to the Agent and all other property of the Grantor in which the Agent or any Lender may at any time be granted a Lien as collateral for the Obligations, is herein collectively referred
to as the “Collateral.” 
  
 Notwithstanding the foregoing, the
Collateral shall not be deemed to include the following: (a) Equipment; (b) Inventory; (c) the Capital Stock of foreign Subsidiaries of the Grantor; (d) any General Intangibles of the Grantor consisting of licenses, leases or other contracts to the
extent that (i) such General Intangibles are not assignable or capable of being encumbered as a matter of law or under the terms of the license, lease or other agreement applicable thereto (but solely to the extent that any such restriction shall be
enforceable under applicable law), without the consent of the licensor or lessor thereof or other applicable party thereto, and (ii) such consent has not been obtained; provided, however, that the foregoing grant of security interest
shall extend to, and the term “Collateral” shall include (but subject to the exclusions set forth in clause (i) and (ii) above), (1) any General Intangibles which are proceeds of, or otherwise related to the enforcement or collection of,
any Account, (2) any and all proceeds of any General Intangible, and (3) upon obtaining the consent of any such licensor, lessor or other applicable party with respect to any such otherwise excluded General Intangibles (it being understood by the
parties that the Grantor shall be under no obligation hereunder to obtain any such consent), such General Intangibles, as well as any and all proceeds thereof, that might have theretofore have been excluded from such grant of a security interest and
the term “Collateral”; (e) any copyrights, copyright applications, copyright registration and like protection in each work of authorship and derivative work thereof, whether published or unpublished, now owned or hereafter acquired;

  

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 any patents, patent applications and like protections including without limitation improvements, divisions,
continuations, renewals, reissues, extensions and continuations-in-part of the same, trademarks, servicemarks and applications therefor, whether registered or not, and the goodwill of the business of Grantor connected with and symbolized by such
trademarks, any trade secret rights, including any rights to unpatented inventions, know-how, operating manuals, license rights and agreements and confidential information, now owned or hereafter acquired; or any claims for damage by way of any
past, present and future infringement of any of the foregoing set forth in this clause (e) (collectively, the “Intellectual Property”), except that the Collateral shall include the proceeds of all the Intellectual Property that are
Accounts of Grantor, or General Intangibles consisting of rights to payment, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest
in such Accounts and General Intangibles of Grantor that are proceeds of the Intellectual Property, then the Collateral shall automatically, and effective as of date hereof, include the Intellectual Property to the extent necessary to permit
perfection of Agent’s security interest in such Accounts and General Intangibles of Grantor that are proceeds of the Intellectual Property. 
  
 (b) All of the Obligations shall be secured by all of the Collateral. 
  
 3. PERFECTION AND PROTECTION OF SECURITY INTEREST. 
  
 (a) The Grantor shall, at its expense, perform all steps requested by the
Agent at any time to perfect, maintain, protect, and enforce the Agent’s Liens, including: (i) executing, delivering and/or filing and recording of the Mortgage(s) and executing and filing financing or continuation statements, and amendments
thereof, in form and substance reasonably satisfactory to the Agent; (ii) delivering to the Agent warehouse receipts covering any portion of the Collateral located in warehouses and for which warehouse receipts are issued and certificates of title
covering any portion of the collateral for which certificates of title have been issued; (iii) placing notations on the Grantor’s books of account to disclose the Agent’s security interest; and (iv) taking such other steps as are deemed
necessary or desirable by the Agent to maintain and protect the Agent’s Liens. The Grantor agrees that a carbon, photographic, photostatic, or other reproduction of this Security Agreement or of a financing statement is sufficient as a
financing statement. 
  
 (b) Upon Agent’s request and after
the occurrence of an Event of Default, Grantor shall deliver to Agent all Collateral consisting of negotiable Documents, certificated securities (accompanied by stock powers executed in blank), Chattel Paper and Instruments promptly after Grantor
receives the same. 
  
 (c) Grantor shall, in accordance with the
terms of the Credit Agreement, obtain or use its best efforts to obtain waivers or subordinations of Liens from landlords and mortgagees, and Grantor shall in all instances obtain signed acknowledgements of Agent’s Liens from bailees having
possession of any Collateral that they hold for the benefit of Agent. 
  
 (d) If required by the terms of the Credit Agreement and not waived by Agent in writing (which waiver may be revoked), Grantor shall obtain authenticated control agreements from each issuer of uncertificated securities, securities
intermediary, or commodities intermediary issuing or holding any financial assets or commodities to or for Grantor. 
  

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 (e) If Grantor is or becomes the beneficiary of a letter of credit Grantor shall direct all payments
thereunder to the Payment Account. 
  
 (f) Grantor shall take all
steps necessary, as requested by Agent, to grant the Agent control of all electronic chattel paper in accordance with the Code and all “transferable records” as defined in the Uniform Electronic Transactions Act. 
  
 (g) Grantor hereby irrevocably authorizes the Agent at any time and from time
to time to file in any filing office in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as set forth herein, regardless of whether any particular asset comprised
in the Collateral falls within the scope of Division 9 of the UCC of the State of California or such other jurisdiction, or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain any other information required by Part 5 of
Division 9 of the UCC of the State of California or such other jurisdiction for the sufficiency or filing office acceptance of any financing statement or amendment, including (i) whether Grantor is an organization, the type of organization and any
organization identification number issued to Grantor, and (ii) in the case of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which
the Collateral relates. Grantor agrees to furnish any such information to the Agent promptly upon request. Grantor also ratifies its authorization for the Agent to have filed in any Uniform Commercial Code jurisdiction any like initial financing
statements or amendments thereto if filed prior to the date hereof. 
  
 (h) Any commercial tort claim (as defined in the UCC) acquired by the Grantor which the Grantor is required to disclose to the SEC in accordance with the Exchange Act shall be disclosed to Agent, and unless otherwise consented to by Agent,
the Grantor shall enter into a supplement to this Security Agreement, granting to Agent a Lien in such commercial tort claim. 
  
 (i) From time to time, the Grantor shall, upon the Agent’s request, execute and deliver confirmatory written instruments pledging to the Agent, for
the ratable benefit of the Agent and the Lenders, the Collateral, but the Grantor’s failure to do so shall not affect or limit any security interest or any other rights of the Agent or any Lender in and to the Collateral with respect to the
Grantor. So long as the Credit Agreement is in effect and until all Obligations have been fully satisfied, the Agent’s Liens shall continue in full force and effect in all Collateral (whether or not deemed eligible for the purpose of
calculating the Availability or as the basis for any advance, loan, extension of credit, or other financial accommodation). 
  
 (j) No Reincorporation. Without limiting the prohibitions on mergers involving Grantor contained in the Credit Agreement, Grantor shall not
reincorporate or reorganize itself under the laws of any jurisdiction other than the jurisdiction in which it is incorporated or organized as of the date hereof or change its type of entity as identified on Schedule II without the prior written
consent of Agent, except as specifically provided in the definition of “Approved Restructuring,” as defined under the Credit Agreement. 
  

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 (k) Terminations Amendments Not Authorized. Grantor acknowledges that it is not authorized to file
any financing statement or amendment or termination statement with respect to any financing statement without the prior written consent of Agent and agrees that it will not do so without the prior written consent of Agent, subject to Grantor’s
rights under UCC Section 9509(d)(2). 
  
 (l) No Restriction on
Payments to Agent. Grantor shall not enter into any Contract that restricts or prohibits the grant of a security interest in Accounts, Chattel Paper, Instruments or payment intangibles or the proceeds of the foregoing to Agent. 
  
 4. LOCATION OF COLLATERAL. (a) The Grantor represents and
warrants to the Agent and the Lenders that: (A) Schedule I is a correct and complete list of the location of Grantor’s chief executive office, the location of its books and records, the locations of the Collateral, and the locations of all of
its other places of business; and (b) Schedule I correctly identifies any of such facilities and locations that are not owned by the Grantor and sets forth the names of the owners and lessors or sublessors of such facilities and locations. The
Grantor covenants and agrees that it will not (i) maintain any Collateral at any location other than those locations listed for the Grantor on Schedule I, (ii) otherwise change or add to any of such locations, or (iii) change the location of its
chief executive office from the location identified in Schedule I, unless in each case it gives the Agent at least thirty (30) days’ prior written notice thereof and executes any and all financing statements and other documents that the Agent
reasonably requests in connection therewith. 
  
 5.
JURISDICTION OF ORGANIZATION. Schedule II hereto identifies Grantor’s name as of the Closing Date as it appears in official filings in the state of its incorporation or other organization, the type of entity of Grantor (including
corporation, partnership, limited partnership or limited liability company), organizational identification number issued by Grantor’s state of incorporation or organization or a statement that no such number has been issued and the jurisdiction
in which the Grantor is incorporated or organized. Grantor has only one state of incorporation or organization. 
  
 6. TITLE TO, LIENS ON, AND SALE AND USE OF COLLATERAL. The Grantor represents and warrants to the Agent and the Lenders and agrees with the
Agent and the Lenders that: (a) Grantor has rights in and the power to transfer all of the Collateral free and clear of all Liens whatsoever, except for Permitted Liens; (b) the Agent’s Liens in the Collateral will not be subject to any prior
Lien except for those Liens identified in clauses (c), (d), (e), (g), (h) and (k) of the definition of Permitted Liens; and (c) the Grantor will use, store, and maintain the Collateral with all reasonable
care and will use such Collateral for lawful purposes only. 
  
 7. APPRAISALS. Whenever an Event of Default exists, and at such other times not more frequently than once a year as the Agent requests, the Grantor shall, at its expense and upon the Agent’s request, provide the Agent
with appraisals or updates thereof of any or all of the Collateral from an appraiser, and prepared on a basis, satisfactory to the Agent, such appraisals and updates to include, without limitation, information required by applicable law and
regulation and by the internal policies of the Lenders. 
  

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 8. ACCESS AND EXAMINATION. The Agent, accompanied by any Lender which so elects, may at all
reasonable times during regular business hours (and at any time when a Default or Event of Default exists and is continuing) have access to, examine, audit, make extracts from or copies of and inspect any or all of the Grantor’s records, files,
and books of account and the Collateral, and discuss the Grantor’s affairs with the Grantor’s officers and management. The Grantor will deliver to the Agent any instrument necessary for the Agent to obtain records from any service bureau
maintaining records for the Grantor. The Agent may, and at the direction of the Required Lenders shall, at any time when a Default or Event of Default exists, and at the Grantor’s expense, make copies of all of the Grantor’s books and
records, or require the Grantor to deliver such copies to the Agent. The Agent may, without expense to the Agent, use such of the Grantor’s respective personnel, supplies, and Real Estate as may be reasonably necessary for maintaining or
enforcing the Agent’s Liens. The Agent shall have the right, at any time, in the Agent’s name or in the name of a nominee of the Agent, to verify the validity, amount or any other matter relating to the Accounts, or other Collateral, by
mail, telephone, or otherwise. 
  
 9. COLLATERAL
REPORTING. The Grantor shall provide the Agent with the following documents at the following times in form satisfactory to the Agent: 
  
 (a) at the times specified in Section 5.2(l) of the Credit Agreement, or more frequently if requested by the Agent, a schedule of the
Grantor’s Accounts (other than the Other Affiliate Accounts) created, credits given, cash collected and other adjustments to Accounts (other than the Other Affiliate Accounts) since the last such schedule and a Borrowing Base Certificate;

  
 (b) on a monthly basis, by the 15th day of the following
month, or more frequently if requested by the Agent, an aging of the Grantor’s Accounts (other than the Other Affiliate Accounts), together with a reconciliation to the corresponding Borrowing Base and to the Grantor’s general ledger;

  
 (c) on a monthly basis, by the 15th day of the following
month, or more frequently if requested by the Agent, an aging of the Grantor’s accounts payable; 
  
 (d) on a monthly basis, by the 15th day of the following month (or more frequently if requested by the Agent), a detailed calculation of Eligible
Accounts; 
  
 (e) upon request, copies of invoices in connection
with the Grantor’s Accounts (other than the Other Affiliate Accounts), customer statements, credit memos, remittance advices and reports, deposit slips, shipping and delivery documents in connection with the Grantor’s Accounts (other than
the Other Affiliate Accounts); 
  
 (f) upon request, a statement
of the balance of each of the Other Affiliate Accounts; 
  

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 (g) such other reports as to the Collateral of the Grantor as the Agent shall reasonably request from
time to time; and 
  
 (h) with the delivery of each of the
foregoing, a certificate of the Grantor executed by an officer thereof certifying as to the accuracy and completeness of the foregoing. 
  
 Notwithstanding the foregoing, in the event that in any fiscal quarter of Grantor, commencing after March 31, 2006, there are no Revolving Loans made in such quarter, and
there exists no Default or Event of Default in such quarter, then the Grantor shall not be required to deliver the documents set forth in Section 9(a) through (d) above on a monthly basis, and instead shall be required to deliver such
documents on a quarterly basis by the 15th day of each such quarter. If any of the Grantor’s records or reports of the Collateral are prepared by an accounting service or other agent, the Grantor hereby authorizes such service or agent to
deliver such records, reports, and related documents to the Agent, for distribution to the Lenders. 
  
 10. ACCOUNTS. 
  
 (a) The Grantor hereby represents and warrants to the Agent and the Lenders, with respect to the Grantor’s Accounts (other than the Other Affiliate
Accounts), that: (i) each existing Account (other than the Other Affiliate Accounts) represents, and each future Account (other than the Other Affiliate Accounts) will represent, a bona fide sale or lease and delivery of goods by the
Grantor, or rendition of services by the Grantor, in the ordinary course of the Grantor’s business; (ii) each existing Account (other than the Other Affiliate Accounts) is, and each future Account (other than the Other Affiliate Accounts) will
be, for a liquidated amount payable by the Account Debtor thereon on the terms set forth in the invoice therefor or in the schedule thereof delivered to the Agent, without any offset, deduction, defense, or counterclaim except those known to the
Grantor and disclosed to the Agent and the Lenders pursuant to this Security Agreement; (iii) no payment will be received with respect to any Account (other than the Other Affiliate Accounts), and no credit, discount, or extension, or agreement
therefor will be granted on any Account (other than the Other Affiliate Accounts), except as reported to the Agent and the Lenders in Borrowing Base Certificates delivered in accordance with this Security Agreement; (iv) each copy of an invoice
delivered to the Agent by the Grantor will be a genuine copy of the original invoice sent to the Account Debtor named therein; and (v) all goods described in any invoice representing a sale of goods will have been delivered to the Account Debtor and
all services of the Grantor described in each invoice will have been performed. 
  
 (b) The Grantor shall not re-date any invoice or sale or make sales on extended dating beyond that customary in the Grantor’s business or extend or modify any Account (other than the Other Affiliate Accounts). If
the Grantor becomes aware of any matter adversely affecting the collectibility of any Account or the Account Debtor therefor involving an amount greater than $2,500,000, including information regarding the Account Debtor’s creditworthiness, the
Grantor will promptly so advise the Agent and exclude such Account from Eligible Accounts. 
  
 (c) The Grantor shall not accept any note or other instrument (except a check or other instrument for the immediate payment of money) with respect to any Account (other 
  

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 than the Other Affiliate Accounts) without the Agent’s written consent. If the Agent consents to the acceptance of
any such instrument, it shall be considered as evidence of the Account (other than the Other Affiliate Accounts) and not payment thereof and the Grantor will promptly deliver such instrument to the Agent, endorsed by the Grantor to the Agent in a
manner satisfactory in form and substance to the Agent. Regardless of the form of presentment, demand, notice of protest with respect thereto, the Grantor shall remain liable thereon until such instrument is paid in full. 
  
 (d) The Grantor shall notify the Agent promptly of all disputes and claims in
excess of $5,000,000 with any Account Debtor, and agrees to settle, contest, or adjust such dispute or claim at no expense to the Agent or any Lender. No discount, credit or allowance shall be granted to any such Account Debtor without the
Agent’s prior written consent, except for discounts, credits and allowances made or given in the ordinary course of the Grantor’s business when no Event of Default exists hereunder. The Grantor shall send the Agent a copy of each credit
memorandum in excess of $5,000,000 as soon as issued, and the Grantor shall promptly report that credit on Borrowing Base Certificates submitted by it. The Agent may at all times when an Event of Default exists hereunder, settle or adjust disputes
and claims directly with Account Debtors for amounts and upon terms which the Agent or the Required Lenders, as applicable, shall consider advisable and, in all cases, the Agent will credit the Grantor’s Loan Account with the net amounts
received by the Agent in payment of any Accounts (other than the Other Affiliate Accounts). 
  
 (e) If an Account Debtor returns any Inventory to the Grantor when no Event of Default exists, then the Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account
Debtor in the appropriate amount. The Grantor shall immediately report to the Agent any return involving an amount in excess of $5,000,000. Each such report shall indicate the reasons for the returns. In the event any Account Debtor returns
Inventory to the Grantor when an Event of Default exists, the Grantor, upon the request of the Agent, shall not issue any credits or allowances with respect thereto without the Agent’s prior written consent. Whenever any Inventory is returned,
the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory. 
  
 11. COLLECTION OF ACCOUNTS; PAYMENTS. 
  
 (a) Until the Agent notifies the Grantor to the contrary, the Grantor shall make collection of all Accounts (other than the Other Affiliate Accounts) and
other Collateral for the Agent, shall receive all payments as the Agent’s trustee, and shall immediately deliver all payments in their original form duly endorsed in blank into a Payment Account established for the account of the Grantor at a
Clearing Bank acceptable to the Agent, subject to a Blocked Account Agreement. On or prior to the date hereof, the Grantor shall establish a lock-box service for collections of Accounts (other than the Other Affiliate Accounts) at a Clearing Bank
acceptable to the Agent and subject to a Blocked Account Agreement and other documentation acceptable to the Agent. The Grantor shall instruct all Account Debtors to make all payments directly to the address established for such service. If,
notwithstanding such instructions, the Grantor receives any proceeds of Accounts (other than the Other Affiliate Accounts), it shall 

  

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 receive such payments as the Agent’s trustee, and shall immediately deliver such payments to the Agent in their
original form duly endorsed in blank or deposit them into a Payment Account, as the Agent may direct. All collections received in any lock-box or Payment Account or directly by the Grantor or the Agent, and all funds in any Payment Account or other
account to which such collections are deposited shall be subject to such Grantor’s control unless a Cash Dominion Period exists, in which case the Agent shall be the only Person entitled to give the Clearing Bank instructions directing
dispositions of funds in such Payment Account or other account to which such collections are deposited without further consent by such Grantor. The Agent or the Agent’s designee may, at any time after the occurrence of an Event of Default,
notify Account Debtors with respect to Accounts (other than the Other Affiliate Accounts) that such Accounts have been assigned to the Agent and of the Agent’s security interest therein, and may collect them directly and charge the collection
costs and expenses to the Loan Account as a Revolving Loan. So long as an Event of Default has occurred and is continuing, the Grantor, at the Agent’s request, shall execute and deliver to the Agent such documents as the Agent shall require to
grant the Agent access to any post office box in which collections of Accounts (other than the Other Affiliate Accounts) are received. 
  
 (b) All payments including immediately available funds received by the Agent at a bank account designated by it, will be the Agent’s sole property
for its benefit and the benefit of the Lenders. 
  
 (c) In the
event the Grantor repays all of the Obligations upon the termination of the Credit Agreement or upon acceleration of the Obligations, other than through the Agent’s receipt of payments on account of the Accounts or proceeds of the other
Collateral, such payment will be credited (conditioned upon final collection) to the Grantor’s Loan Account upon the Agent’s receipt of immediately available funds. 
  
 12. INTENTIONALLY OMITTED. 
  
 13. INTENTIONALLY OMITTED. 
  
 14. INTENTIONALLY OMITTED.  
  
 15. DOCUMENTS, INSTRUMENTS, AND CHATTEL PAPER. The Grantor represents and warrants to the Agent and the
Lenders that (a) all Documents, Instruments, and Chattel Paper describing, evidencing, or constituting Collateral, and all signatures and endorsements thereon, are and will be complete, valid, and genuine, and (b) all goods evidenced by such
Documents, Instruments, Letter of Credit Rights and Chattel Paper are and will be owned by the Grantor, free and clear of all Liens other than Permitted Liens. If Grantor retains possession of any Chattel Paper or Instruments with Agent’s
consent, such Chattel Paper and Instruments shall be marked with the following legend: “This writing and the obligations evidenced or served hereby are subject to the security interest of Bank of America, N.A., as Agent, for the benefit of
Agent and certain Lenders.” 
  
 16. RIGHT TO
CURE. The Agent may, in its discretion, and shall, at the direction of the Required Lenders, pay any amount or do any act required of the Grantor hereunder or 
  

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 under any other Loan Document in order to preserve, protect, maintain or enforce the Obligations, the Collateral or the
Agent’s Liens therein, and which the Grantor fails to pay or do, including payment of any judgment against the Grantor, any insurance premium, any warehouse charge, any finishing or processing charge, any landlord’s or bailee’s claim,
and any other Lien upon or with respect to the Collateral. All payments that the Agent makes under this Section 16 and all out-of-pocket costs and expenses that the Agent pays or incurs in connection with any action taken by it hereunder
shall be charged to the Grantor’s Loan Account as a Revolving Loan. Any payment made or other action taken by the Agent under this Section 16 shall be without prejudice to any right to assert an Event of Default hereunder and to proceed
thereafter as herein provided. 
  
 17. POWER OF
ATTORNEY. The Grantor hereby appoints the Agent and the Agent’s designee as the Grantor’s attorney, with power: (a) so long as an Event of Default has occurred and is continuing, to endorse the Grantor’s name on any checks,
notes, acceptances, money orders, or other forms of payment or security that come into the Agent’s or any Lender’s possession; (b) so long as an Event of Default has occurred and is continuing, to sign the Grantor’s name on any
invoice, bill of lading, warehouse receipt or other negotiable or non-negotiable Document constituting Collateral, on drafts against customers, on assignments of Accounts, on notices of assignment, financing statements and other public records and
to file any such financing statements by electronic means with or without a signature as authorized or required by applicable law or filing procedure; (c) so long as an Event of Default has occurred and is continuing, to notify the post office
authorities to change the address for delivery of the Grantor’s mail to an address designated by the Agent and to receive, open and dispose of all mail addressed to the Grantor; (d) to send requests for verification of Accounts to customers or
Account Debtors; (e) so long as an Event of Default has occurred and is continuing, to complete in the Grantor’s name or the Agent’s name, any order, sale or transaction, obtain the necessary Documents in connection therewith, and collect
the proceeds thereof; (f) to the extent that Grantor’s authorization given in Section 3(g) of this Security Agreement is not sufficient, to file such financing statements with respect to this Security Agreement, with or without
Grantor’s signature, or to file a photocopy of this Security Agreement in substitution for a financing statement, as the Agent may deem appropriate and to execute in Grantor’s name such financing statements and amendments thereto and
continuation statements which may require the Grantor’s signature; and (g) to do all things necessary to carry out the Credit Agreement and this Security Agreement. The Grantor ratifies and approves all acts of such attorney. None of the
Lenders or the Agent nor their attorneys will be liable for any acts or omissions or for any error of judgment or mistake of fact or law except for their gross negligence or willful misconduct. This power, being coupled with an interest, is
irrevocable until the Credit Agreement has been terminated and the Obligations have been fully satisfied. 
  
 18. THE AGENT’S AND LENDERS’ RIGHTS, DUTIES AND LIABILITIES. 
  
 (a) The Grantor assumes all responsibility and liability arising from or relating to the use, sale, license or other
disposition of the Collateral. The Obligations shall not be affected by any failure of the Agent or any Lender to take any steps to perfect the Agent’s Liens or to collect or realize upon the Collateral, nor shall loss of or damage to the
Collateral release the Grantor from any of the Obligations. Following the occurrence and during the 
  

 12 

 continuation of an Event of Default, the Agent may (but shall not be required to), and at the direction of the Required
Lenders shall, without notice to or consent from the Grantor, sue upon or otherwise collect, extend the time for payment of, modify or amend the terms of, compromise or settle for cash, credit, or otherwise upon any terms, grant other indulgences,
extensions, renewals, compositions, or releases, and take or omit to take any other action with respect to the Collateral, any security therefor, any agreement relating thereto, any insurance applicable thereto, or any Person liable directly or
indirectly in connection with any of the foregoing, without discharging or otherwise affecting the liability of the Grantor for the Obligations or under the Credit Agreement or any other agreement now or hereafter existing between the Agent and/or
any Lender and the Grantor. 
  
 (b) It is expressly agreed by
Grantor that, anything herein to the contrary notwithstanding, Grantor shall remain liable under each of its contracts and each of its licenses to observe and perform all the conditions and obligations to be observed and performed by it thereunder.
Neither Agent nor any Lender shall have any obligation or liability under any contract or license by reason of or arising out of this Security Agreement or the granting herein of a Lien thereon or the receipt by Agent or any Lender of any payment
relating to any contract or license pursuant hereto. Neither Agent nor any Lender shall be required or obligated in any manner to perform or fulfill any of the obligations of Grantor under or pursuant to any contract or license, or to make any
payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any contract or license, or to present or file any claims, or to take any action to collect or
enforce any performance or the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 
  
 (c) Agent may at any time after an Event of Default has occurred and be continuing (or if any rights of set-off (other than set-offs against an Account
arising under the contract giving rise to the same Account) or contra accounts may be asserted with respect to the following), without prior notice to Grantor, notify Account Debtors, and other Persons obligated on the Collateral that Agent has a
security interest therein, and that payments shall be made directly to Agent, for itself and the benefit of Lenders. Upon the request of Agent, Grantor shall so notify Account Debtors and other Persons obligated on Collateral. Once any such notice
has been given to any Account Debtor or other Person obligated on the Collateral, the Grantor shall not give any contrary instructions to such Account Debtor or other Person without Agent’s prior written consent. 
  
 (d) Agent may at any time in Agent’s own name or in the name of Grantor
communicate with Account Debtors, parties to Contracts and obligors in respect of Instruments to verify with such Persons, to Agent’s satisfaction, the existence, amount and terms of Accounts (other than the Other Affiliate Accounts), payment
intangibles, Instruments or Chattel Paper. If an Event of Default shall have occurred and be continuing, Grantor, at its own expense, shall cause the independent certified public accountants then engaged by Grantor to prepare and deliver to Agent
and each Lender at any time and from time to time promptly upon Agent’s request the following reports with respect to Grantor: (i) a reconciliation of all Accounts (other than the Other Affiliate Accounts); (ii) an aging of all Accounts (other
than the Other Affiliate Accounts); (iii) trial balances; and (iv) a test verification of such Accounts (other than the Other 

  

 13 

 Affiliate Accounts) as Agent may request. Grantor, at its own expense, shall deliver to Agent the results of each
physical verification, if any, which Grantor may in its discretion have made, or caused any other Person to have made on its behalf, of all or any portion of its Inventory. 
  
 19. INTENTIONALLY OMITTED. 
  
 20. INDEMNIFICATION. In any suit, proceeding or action brought by Agent or any Lender relating to any
Collateral for any sum owing with respect thereto or to enforce any rights or claims with respect thereto, Grantor will save, indemnify and keep Agent and Lenders harmless from and against all expense (including reasonable attorneys’ fees and
expenses), loss or damage suffered by reason of any defense, setoff, counterclaim, recoupment or reduction of liability whatsoever of the Account Debtor or other Person obligated on the Collateral, arising out of a breach by Grantor of any
obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to, or in favor of, such obligor or its successors from Grantor, except in the case of Agent or any Lender, to the extent such expense, loss, or
damage is attributable solely to the gross negligence or willful misconduct of Agent or such Lender as finally determined by a court of competent jurisdiction. All such obligations of Grantor shall be and remain enforceable against and only against
Grantor and shall not be enforceable against Agent or any Lender. 
  
 21. LIMITATION ON LIENS ON PROPERTY. Grantor will not create, permit or suffer to exist, and will defend any property now owned or hereafter acquired against, and take such other action as is necessary to remove, any Lien on
any property now owned or hereafter acquired except Permitted Liens, and will defend the right, title and interest of Agent and Lenders in and to any of Grantor’s rights under the Collateral against the claims and demands of all Persons
whomsoever. 
  
 22. NOTICE REGARDING COLLATERAL.
Grantor will advise Agent promptly, in reasonable detail, (i) of any Lien (other than Permitted Liens) or claim made or asserted against any of the Collateral, and (ii) of the occurrence of any other event which would have a Material Adverse Effect.

  
 23. REMEDIES; RIGHTS UPON DEFAULT. 

 
 (a) In addition to all other rights and remedies granted to it under this
Security Agreement, the Credit Agreement, the other Loan Documents and under any other instrument or agreement securing, evidencing or relating to any of the Obligations, if any Event of Default shall have occurred and be continuing, Agent may
exercise all rights and remedies of a secured party under the UCC. Without limiting the generality of the foregoing, Grantor expressly agrees that in any such event Agent, without demand of performance or other demand, advertisement or notice of any
kind (except the notice specified below of time and place of public or private sale) to or upon Grantor or any other Person (all and each of which demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the
UCC and other applicable law), may forthwith enter upon the premises of Grantor where any Collateral is located through self-help, without judicial process, without first obtaining a final judgment or giving Grantor or any other Person notice and
opportunity for a hearing on Agent’s claim or 
  

 14 

 action and may collect, receive, assemble, process, appropriate and realize upon the Collateral, or any part thereof, and
may forthwith sell, lease, license, assign, give an option or options to purchase, or sell or otherwise dispose of and deliver said Collateral (or contract to do so), or any part thereof, in one or more parcels at a public or private sale or sales,
at any exchange at such prices as it may deem acceptable, for cash or on credit or for future delivery without assumption of any credit risk. Agent or any Lender shall have the right upon any such public sale or sales and, to the extent permitted by
law, upon any such private sale or sales, to purchase for the benefit of Agent and Lenders, the whole or any part of said Collateral so sold, free of any right or equity of redemption, which equity of redemption Grantor hereby releases. Such sales
may be adjourned and continued from time to time with or without notice. Agent shall have the right to conduct such sales on Grantor’s premises or elsewhere and shall have the right to use Grantor’s premises without charge for such time or
times as Agent deems necessary or advisable. 
  
 (b) Grantor
further agrees, at Agent’s request, to assemble the Collateral and make it available to Agent at a place or places designated by Agent which are reasonably convenient to Agent and Grantor, whether at Grantor’s premises or elsewhere. Until
Agent is able to effect a sale, lease, or other disposition of Collateral, Agent shall have the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or its value or
for any other purpose deemed appropriate by Agent. Agent shall have no obligation to Grantor to maintain or preserve the rights of Grantor as against third parties with respect to Collateral while Collateral is in the possession of Agent. Agent may,
if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of Agent’s remedies (for the benefit of Agent and Lenders), with respect to such appointment without prior notice or hearing as to
such appointment. Agent shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale to the Obligations as provided in the Credit Agreement, and only after so paying over such net proceeds, and after the
payment by Agent of any other amount required by any provision of law, need Agent account for the surplus, if any, to Grantor. To the maximum extent permitted by applicable law, Grantor waives all claims, damages, and demands against Agent or any
Lender arising out of the repossession, retention or sale of the Collateral except such as arise solely out of the gross negligence or willful misconduct of Agent or such Lender as finally determined by a court of competent jurisdiction. Grantor
agrees that ten (10) days prior notice by Agent of the time and place of any public sale or of the time after which a private sale may take place is reasonable notification of such matters. Grantor shall remain liable for any deficiency if the
proceeds of any sale or disposition of the Collateral are insufficient to pay all Obligations, including any attorneys’ fees or other expenses incurred by Agent or any Lender to collect such deficiency. 
  
 (c) Except as otherwise specifically provided herein, Grantor hereby waives
presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with this Security Agreement or any Collateral. 
  
 (d) To the extent that applicable law imposes duties on the Agent to exercise remedies in a commercially reasonable manner,
Grantor acknowledges and agrees that it is not commercially unreasonable for the Agent (i) to fail to incur expenses reasonably deemed significant by the Agent to prepare Collateral for disposition, (ii) to fail to obtain third party 
  

 15 

 consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain
governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against Account Debtors or other Persons obligated on Collateral or to remove Liens on
or any adverse claims against Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to advertise
dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vii) to contact other Persons, whether or not in the same business as the Grantor, for expressions of
interest in acquiring all or any portion of such Collateral, (viii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (ix) to dispose of Collateral by
utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (x) to dispose of assets in wholesale rather than
retail markets, (xi) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xii) to purchase insurance or credit enhancements to insure the Agent against risks of loss, collection or disposition of Collateral or to
provide to the Agent a guaranteed return from the collection or disposition of Collateral, or (xiii) to the extent deemed appropriate by the Agent, to obtain the services of other brokers, investment bankers, consultants and other professionals to
assist the Agent in the collection or disposition of any of the Collateral. Grantor acknowledges that the purpose of this Section 23(d) is to provide non-exhaustive indications of what actions or omissions by the Agent would not be
commercially unreasonable in the Agent’s exercise of remedies against the Collateral and that other actions or omissions by the Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this Section
23(d). Without limitation upon the foregoing, nothing contained in this Section 23(d) shall be construed to grant any rights to Grantor or to impose any duties on Agent that would not have been granted or imposed by this Security
Agreement or by applicable law in the absence of this Section 23(d). 
  
 24. GRANT OF LICENSE TO USE INTELLECTUAL PROPERTY. For the purpose of enabling Agent to exercise rights and remedies under Section 23 hereof (including, without limiting the terms of Section
23 hereof, in order to take possession of, hold, preserve, process, assemble, prepare for sale, market for sale, sell or otherwise dispose of Collateral) at such time as Agent shall be lawfully entitled to exercise such rights and remedies and
at any time after Grantor has granted to Agent a Lien upon the Grantor’s Inventory (without implying that Grantor has any intent or obligation to do so), the Grantor shall grant to Agent, for the benefit of Agent and Lenders, an irrevocable,
nonexclusive license (exercisable without payment of royalty or other compensation to Grantor) to use, license or sublicense any Intellectual Property now owned or hereafter acquired by Grantor, and wherever the same may be located, and including in
such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof. 
  
 25. LIMITATION ON AGENT’S AND LENDERS’ DUTY IN RESPECT OF COLLATERAL. Agent and each Lender shall
use reasonable care with respect to the Collateral in its possession or under its control. Neither Agent nor any Lender shall have any other duty as to any Collateral in its possession or control or in the possession or control of any agent or
nominee of Agent or such Lender, or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto. 
  

 16 

 26. MISCELLANEOUS. 
  
 (a) Reinstatement. This Security Agreement shall remain in full force and effect and continue to be effective
should any petition be filed by or against Grantor for liquidation or reorganization, should Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any
significant part of Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced
in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made. In
the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. 
  
 (b) Notices. Except as otherwise provided herein, whenever it
is provided herein that any notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the parties desires to give and serve upon
any other party any communication with respect to this Security Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and shall be given in the manner, and deemed received, as
provided for in the Credit Agreement. 
  
 (c)
Severability. Whenever possible, each provision of this Security Agreement shall be interpreted in a manner as to be effective and valid under applicable law, but if any provision of this Security Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Security Agreement. This Security Agreement is
to be read, construed and applied together with the Credit Agreement and the other Loan Documents which, taken together, set forth the complete understanding and agreement of Agent, Lenders and Grantor with respect to the matters referred to herein
and therein. 
  
 (d) No Waiver; Cumulative Remedies.
Neither Agent nor any Lender shall by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by Agent and then only to the extent therein set
forth. A waiver by Agent of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which Agent would otherwise have had on any future occasion. No failure to exercise nor any delay in exercising on
the part of Agent or any Lender, any right, power or privilege hereunder, shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or future exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies hereunder provided are cumulative and may be exercised singly or concurrently, 
  

 17 

 and are not exclusive of any rights and remedies provided by law. None of the terms or provisions of this Security
Agreement may be waived, altered, modified or amended except by an instrument in writing, duly executed by Agent and Grantor. 
  
 (e) Limitation by Law. All rights, remedies and powers provided in this Security Agreement may be exercised only to the extent that the
exercise thereof does not violate any applicable provision of law, and all the provisions of this Security Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent
necessary so that they shall not render this Security Agreement invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law. 
  
 (f) Termination of this Security Agreement. Subject to
Section 26(a) hereof, this Security Agreement shall terminate upon the satisfactory collateralization of all Letters of Credit and the payment in full of all other Obligations (other than indemnification Obligations as to which no claim has
been asserted). 
  
 (g) Successors and Assigns. This
Security Agreement and all obligations of Grantor hereunder shall be binding upon the successors and assigns of Grantor (including any debtor-in-possession on behalf of Grantor) and shall, together with the rights and remedies of Agent, for the
benefit of Agent and Lenders, hereunder, inure to the benefit of Agent and Lenders, all future holders of any instrument evidencing any of the Obligations and their respective successors and assigns. No sales of participations, other sales,
assignments, transfers or other dispositions of any agreement governing or instrument evidencing the Obligations or any portion thereof or interest therein shall in any manner affect the Lien granted to Agent, for the benefit of Agent and Lenders,
hereunder. Grantor may not assign, sell, hypothecate or otherwise transfer any interest in or obligation under this Security Agreement. 
  
 (h) Counterparts. This Security Agreement may be authenticated in any number of separate counterparts, each of which shall collectively and
separately constitute one and the same agreement. This Security Agreement may be authenticated by manual signature, facsimile or, if approved in writing by Agent, electronic means, all of which shall be equally valid. 
  
 (i) Governing Law; Choice of Forum; Service of Process; Jury Trial
Waiver. 
  
 (i) THIS SECURITY AGREEMENT SHALL BE
INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICT OF LAWS PROVISIONS PROVIDED THAT ISSUES WITH RESPECT TO CREATION, PERFECTION, AND ENFORCEMENT OF LIENS UNDER
DIVISION 9 OF THE UCC MAY GIVE EFFECT TO APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTH IN DIVISION 9 OF THE UCC) OF THE STATE OF CALIFORNIA; PROVIDED, THAT, THE AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL
LAW. 
  

 18 

 (ii) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA OR OF THE UNITED STATES OF AMERICA LOCATED IN LOS ANGELES COUNTY, CALIFORNIA, AND BY EXECUTION AND DELIVERY OF THIS SECURITY AGREEMENT, EACH OF THE GRANTOR, THE AGENT AND THE LENDERS CONSENTS,
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE GRANTOR, THE AGENT AND THE LENDERS IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS SECURITY AGREEMENT OR ANY DOCUMENT RELATED HERETO. NOTWITHSTANDING THE FOREGOING: (1) THE AGENT AND
THE LENDERS SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST GRANTOR OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION THE AGENT OR THE LENDERS DEEM NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR OTHER SECURITY
FOR THE GUARANTEED OBLIGATIONS AND (2) EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE IMMEDIATELY PRECEDING SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE JURISDICTIONS. 
  
 (iii) THE GRANTOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON
IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY OVERNIGHT MAIL, COURIER SERVICE, OR REGISTERED MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO GRANTOR AT ITS ADDRESS SET FORTH IN SECTION 26(b) AND SERVICE SO MADE SHALL BE DEEMED
TO BE COMPLETED 5 DAYS AFTER THE SAME SHALL HAVE BEEN SO DEPOSITED IN THE U.S. MAILS POSTAGE PREPAID. NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF THE AGENT OR THE LENDERS TO SERVE LEGAL PROCESS BY ANY OTHER MANNER PERMITTED BY LAW.

  
 (iv) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECURITY
AGREEMENT TO THE CONTRARY, ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES, ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT INCLUDING ANY CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL AT THE REQUEST OF
ANY PARTY HERETO BE DETERMINED BY BINDING ARBITRATION. The arbitration shall be conducted in accordance with the United States Arbitration Act (Title 9, U.S. Code), notwithstanding any choice of law provision in this Security Agreement, and under
the Commercial Rules of the American Arbitration Association (“AAA”). The arbitrator(s) shall give effect to statutes of limitation in determining any claim. Any controversy concerning whether an issue is arbitrable shall be
determined by the arbitrator(s). Judgment upon the arbitration award may be entered in any court having jurisdiction. The institution and maintenance of an action for judicial relief or pursuant to a provisional or ancillary remedy shall not
constitute a waiver of the right of either party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action for judicial relief. 
  

 19 

 (v) Notwithstanding the provisions of (iv) above, no controversy or claim shall be submitted to
arbitration without the consent of all parties if, at the time of the proposed submission, such controversy or claim arises from or related to an obligation to the Lenders which is secured by real estate property collateral (exclusive of real estate
space lease assignments). If all the parties do not consent to submission of such a controversy or claim to arbitration, the controversy or claim shall be determined as provided in Section 25 (i)(vi). 
  
 (vi) At the request of either party a controversy or claim which is not
submitted to arbitration as provided and limited in Sections 25 (i)(iv) and 25(i)(v) shall be determined by judicial reference. If such an election is made, the parties shall designate to the court a referee or referees selected under the
auspices of the AAA in the same manner as arbitrators are selected in AAA-sponsored proceedings. The presiding referee of the panel, or the referee if there is a single referee, shall be an active attorney or retired judge. Judgment upon the award
rendered by such referee or referees shall be entered in the court in which such proceeding was commenced. 
  
 (vii) No provision of Sections (iv) through (vi) shall limit the right of the Agent or the Lenders to exercise self-help remedies such as setoff,
foreclosure against or sale of any real or personal property collateral or security, or obtaining provisional or ancillary remedies from a court of competent jurisdiction before, after, or during the pendency of any arbitration or other proceeding.
The exercise of a remedy does not waive the right of either party to resort to arbitration or reference. At the Agent’s option, foreclosure under a deed of trust or mortgage may be accomplished either by exercise of power of sale under the deed
of trust or mortgage or by judicial foreclosure. 
  
 (viii)
SUBJECT TO THE PROVISIONS OF SECTION 25 (i)(iv) AND TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, GRANTOR, THE AGENT AND THE LENDERS EACH IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF OR RELATED TO THIS SECURITY AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER
PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. GRANTOR, THE AGENT AND THE LENDERS EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL
WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO
CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS SECURITY AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS SECURITY
AGREEMENT AND THE OTHER LOAN DOCUMENTS. 
  

 20 

 (ix) NO CLAIM MAY BE MADE BY GRANTOR AGAINST THE AGENT OR THE LENDERS, OR THE AFFILIATES, DIRECTORS,
OFFICERS, OFFICERS, EMPLOYEES, OR AGENTS OF THE AGENT OR THE LENDERS FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES IN RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE
TRANSACTIONS CONTEMPLATED BY THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH, AND GRANTOR HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR
NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR. 
  
 (j) Section Titles. The Section titles contained in this Security Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the
parties hereto. 
  
 (k) No Strict Construction. The
parties hereto have participated jointly in the negotiation and drafting of this Security Agreement. In the event an ambiguity or question of intent or interpretation arises, this Security Agreement shall be construed as if drafted jointly by the
parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Security Agreement. 
  
 (l) Advice of Counsel. Each of the parties represents to each other party hereto that it has discussed this
Security Agreement and, specifically, the provisions of Section 26(i), with its counsel. 
  
 (m) Benefit of Lenders. All Liens granted or contemplated hereby shall be for the benefit of Agent and Lenders, and all proceeds or payments
realized from Collateral in accordance herewith shall be applied to the Obligations in accordance with the terms of the Credit Agreement. 
  

 21 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be executed and
delivered by its duly authorized officer as of the date first set forth above. 
  

			
	SPANSION LLC,
	a Delaware limited liability company
		
	By:	 	 /s/ Steven J. Geiser

	Name:	 	Steven J. Geiser
	Title:	 	Vice President, Chief Financial Officer and Treasurer

  

 22 

			
	BANK OF AMERICA, N.A.,
	as Agent
		
	By:	 	 /s/ Matthew R. VanSteenhuyse

	Name:	 	Matthew R. VanSteenhuyse
	Title:	 	Senior Vice President

  

 23Deed of Trust, Security Agreement, Assignment of Rents and Financing Statement

 Exhibit 10.1(c) 
  
 DEED OF TRUST, SECURITY AGREEMENT, 
 ASSIGNMENT OF RENTS AND FINANCING STATEMENT 
  
 THIS DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND FINANCING STATEMENT (this “Deed of Trust”), entered into this 13th day of September, 2005, to be effective the 19th day of
September. 2005, by SPANSION LLC, a Delaware limited liability company (“Grantor”), whose address for notice hereunder is 915 DeGuigne Drive, P. O. Box 3453, Sunnyvale, California 94088, to PRLAP, INC., Trustee (hereinafter
referred to in such capacity as “Trustee”), whose address is 700 Louisiana, 7th Floor, Houston, Texas 77002, for the benefit of BANK OF AMERICA, N.A., a national banking association, in the capacity as Agent for the Lenders,
whose address is 55 South Lake Avenue, Suite 900, Pasadena, California 91107, 
  
 W I T N E S S E T H: 
  
 ARTICLE 1.  
  
 Definitions 
  
 Capitalized terms used but not defined herein shall have the respective meanings given thereto in the Credit Agreement. As used herein, the following terms shall have the following meanings: 
  
 (a) Beneficiary: Bank of America, N.A., a national
banking association, in the capacity as Agent for the Lenders, together with any successor agent under the Credit Agreement. 
  
 (b) Buildings: Any and all buildings, covered garages, utility sheds, workrooms, air conditioning towers, open parking areas,
structures and other improvements, and any and all additions, alterations, betterments or appurtenances thereto, now or at any time hereafter situated, placed or constructed upon the Land or any part thereof. 
  
 (c) Credit Agreement: The Credit Agreement of even
date herewith among the financial institutions named therein, Bank of America, N.A., as Agent, Banc of America Securities LLC, as the Sole Lead Manager and Book Manager, and Grantor, relating to loans to Grantor in an aggregate amount of up to
$175,000,000.00. 
  
 (d) Event of Default:
The phrase “Event of Default” shall have the meaning given thereto in the Credit Agreement. 
  
 (e) Fixtures: Those items now owned or hereafter acquired by Grantor that are both (1) now or hereafter attached or affixed to or
installed in any of the Buildings or on the Land and (2) required in order for the Buildings to provide an environment for the manufacturing of semiconductor wafers, including, without limitation, water, utility gas, electrical, storm and sanitary
sewer facilities from the point of connection with the utility service providers’ service delivery facilities, but excluding, without limitation, all materials, supplies, equipment, apparatus and other items now owned or hereafter acquired by
Grantor and now or hereafter attached to, installed in or used in connection with (temporarily or permanently) the semiconductor manufacturing tools and automation distribution systems now or hereafter located in the Buildings; and provided, further
that “Fixtures” shall expressly exclude all said semiconductor manufacturing tools and automation distribution systems now or hereafter located in the Buildings and all gas cabinets, electrical motor generators and all chemical
distribution systems to the tools and equipment they serve. 

 (f) Grantor: The above defined Grantor, and any and all subsequent owners of the
Mortgaged Property or any part thereof. 
  
 (g)
Guarantors (individually and/or collectively, as the context may require): Spansion International, Inc., a Delaware corporation, and any other person executing a Guaranty. 
  
 (h) Guaranty (individually and/or collectively, as the context may require): All Guaranty Agreements
executed by any person in favor of Beneficiary, guaranteeing repayment or performance of any or all of the Loan Documents. 
  
 (i) Impositions: All real estate and personal property taxes; water, gas, sewer, electricity and other utility rates and charges;
charges for any easement, license or agreement maintained for the benefit of the Mortgaged Property; and all other taxes, charges and assessments and any interest, costs or penalties with respect thereto, general and special, ordinary and
extraordinary, foreseen and unforeseen, of any kind and nature whatsoever which at any time prior to or after the execution hereof may be assessed, levied or imposed upon the Mortgaged Property or the Rents or the ownership, use, occupancy or
enjoyment thereof. 
  
 (j) Land: The real
estate or interest therein described on Exhibit “A” attached hereto, and all rights, titles and interests appurtenant thereto. 
  
 (k) Leases: Any and all leases, subleases, licenses, concessions or other agreements (written or oral, now or hereafter in effect)
which grant a possessory interest in and to, or the right to use, the Mortgaged Property, and all other agreements, such as utility contracts, maintenance agreements and service contracts, which in any way relate to the use, occupancy, operation,
maintenance, enjoyment or ownership of the Mortgaged Property. 
  
 (l) Lenders: The financial institutions from time to time parties to the Credit Agreement, together with their respective successors and assigns. 
  
 (m) Loan Documents: The Loan Documents defined in the Credit Agreement including, without limitation,
the Credit Agreement, this Deed of Trust, and all Guarantys. 
  
 (n) Material Adverse Effect: The term “Material Adverse Effect” shall have the meaning given thereto in the Credit Agreement. 
  
 (o) Mortgaged Property: The Land, Buildings and Fixtures, together with: 
  
 (i) all rights, privileges, tenements, hereditaments,
rights-of-way, easements, appendages and appurtenances in anywise appertaining thereto, and all right, title and interest, if any, of Grantor in and to any streets, ways, alleys, strips or gores of land adjoining the Land or any part thereof; and

  
 (ii) all betterments, additions, alterations,
appurtenances, substitutions, replacements and revisions thereof and thereto and all reversions and remainders therein; and 
  
 (iii) all of Grantor’s right, title and interest in and to any awards, remunerations, reimbursements, settlements or compensation
heretofore made or hereafter to be made by any Governmental Authority pertaining to the Land, Buildings or Fixtures, including but not limited to those for any vacation of, or change of grade in, any streets affecting the Land or the Buildings and
those for municipal utility district or other utility costs incurred in connection with the Land; and 

 (iv) all rights to utility availability applicable to the Land granted by any city,
municipal utility district or other governmental or quasi-governmental authority. 
  
 As used in this Deed of Trust, the term “Mortgaged Property” shall be expressly defined as meaning all, or where the context
permits or requires, any portion of the above, and all or, where the context permits or requires, any interest therein. 
  
 (p) Obligations: The Obligations defined in the Credit Agreement including, without limitation, (i) the principal of, interest on
and all other amounts, payments and premiums due under the Credit Agreement; and (ii) any and all obligations, contingent or otherwise, whether now existing or hereafter arising, of Grantor to Beneficiary or any Lender, or to any of their respective
Affiliates or successors arising under or in connection with any Bank Products (as such term is defined in the Credit Agreement). The scheduled maturity date of the Obligations is the date that is five (5) years after the date of this Deed of Trust.

  
 (q) Other Obligations: Any and all of
the covenants, warranties, representations and other obligations (other than to repay the Obligations) made or undertaken by Grantor, Guarantors or others to any Lender, Beneficiary, Trustee or others as set forth in the Loan Documents. 

 
 (r) Rents: All of the rents, revenues, income,
proceeds, profits, security and other types of deposits, and other benefits paid or payable by parties to the Leases other than Grantor for using, leasing, licensing, possessing, operating from, residing in, selling or otherwise enjoying the
Mortgaged Property. 
  
 (s) Utility
Rights: Any and all rights of Grantor to utility availability (including water, sanitary sewer, and drainage) applicable to the Land and Buildings granted or to be granted by any utility, municipal utility district, or any other Governmental
Authority. 
  
 ARTICLE 2.  
  
 Grant 
  
 To secure the full and timely payment of the Obligations and the full and timely performance and discharge of the Other
Obligations, Grantor has GRANTED, BARGAINED, SOLD and CONVEYED, and by these presents does GRANT, BARGAIN, SELL and CONVEY, unto Trustee the Mortgaged Property, subject, however, to the Permitted Liens, TO HAVE AND TO HOLD the Mortgaged Property
unto Trustee, forever, and Grantor does hereby bind itself, its successors and assigns to warrant and forever defend the title to the Mortgaged Property unto Trustee against every person whomsoever lawfully claiming or to claim the same or any part
thereof; provided, however, that if Grantor shall pay (or cause to be paid) the Obligations as and when the same shall become due and payable and shall have performed and discharged (or caused to be performed and discharged) all Other Obligations
required to be performed and discharged at the time the Obligations are paid in full, then the Liens created by this Deed of Trust shall terminate, otherwise same shall remain in full force and effect. 

 ARTICLE 3.  
  
 Affirmative Covenants 
  
 Grantor hereby unconditionally covenants and agrees with Beneficiary as follows: 
  
 3.1 First Lien Status: Grantor will protect the first lien status of this Deed of Trust. Except for Permitted Liens,
Grantor will not place, or permit to be placed, or otherwise mortgage, hypothecate or encumber the Mortgaged Property with, any other Lien, regardless of whether same is allegedly or expressly inferior to the Lien created by this Deed of Trust, and,
if any such Lien is asserted against the Mortgaged Property, Grantor will promptly, and at its own cost and expense, (a) pay the underlying claim in full or take such other action so as to cause same to be released and (b) within five (5) days from
the date Borrower obtains knowledge that such Lien is so asserted, give Beneficiary notice of such Lien. Such notice shall specify who is asserting such Lien and shall detail the origin and nature of the underlying claim giving rise to such asserted
Lien. In the event of the placing of a mechanic’s or materialman’s lien against the Mortgaged Property, Borrower shall have the additional option of filing a bond for payment of the claim secured by such Lien in accordance with the
provisions of Subchapter I of Chapter 53 of the Texas Property Code. 
  
 3.2 Repair: Grantor will keep the Mortgaged Property in first class order and condition and will make all repairs, replacements, renewals, additions, betterments, improvements and alterations thereof and thereto, interior and
exterior, structural and non-structural, ordinary and extraordinary, foreseen and unforeseen, which are necessary or reasonably appropriate to keep same in such order and condition. Grantor will also use its best efforts to prevent any act or
occurrence which might impair the value or usefulness of the Mortgaged Property for its intended usage. In instances where repairs, replacements, renewals, additions, betterments, improvements or alterations are required in and to the Mortgaged
Property to prevent loss, damage, waste or destruction thereof, Grantor shall proceed to construct same, or cause same to be constructed. 
  
 3.3 [Intentionally Omitted] 
  
 3.4 [Intentionally Omitted] 
  
 3.5 Restoration Following Casualty: If any act or occurrence of any kind or nature, ordinary or extraordinary, foreseen or unforeseen (including
any casualty for which insurance was not obtained or obtainable), shall result in damage to or loss or destruction of the Mortgaged Property, Grantor will give notice thereof to Beneficiary and, if so instructed by Beneficiary, will promptly, at
Grantor’s sole cost and expense and regardless of whether the insurance proceeds (if any) shall be sufficient for the purpose, commence and continue diligently to completion to restore, repair, replace and rebuild the Mortgaged Property as
nearly as possible to its value, condition and character immediately prior to such damage, loss or destruction. 
  
 3.6 Maintenance of Rights-of-Way, Easements, and Licenses: Grantor will maintain, preserve and renew all rights-of-way, easements, grants,
privileges, licenses and franchises reasonably necessary for the use of the Mortgage Property from time to time and will not, without the prior consent of Beneficiary, initiate, join in or consent to any private restrictive covenant or other public
or private restriction as to the use of the Mortgaged Property. 

 ARTICLE 4.  
  
 Negative Covenants 
  
 Grantor hereby covenants and agrees with Beneficiary that, until the entire Obligations shall have been paid in full and all of the Other Obligations
shall have been fully performed and discharged: 
  
 4.1 Use
Violations: Grantor will not use, maintain, operate or occupy, or allow the use, maintenance, operation or occupancy of, the Mortgaged Property in any manner which (a) violates any Requirement of Law, (b) may be dangerous unless safeguarded as
required by all Requirements of Law or (c) constitutes a public or private nuisance, in each case such as could reasonably be expected to have a Material Adverse Effect. 
  
 4.2 Waste: Grantor will not commit or permit any waste of the Mortgaged Property such as could reasonably be expected
to have a Material Adverse Effect. 
  
 ARTICLE 5. 
  
 [INTENTIONALLY OMITTED] 
  
 ARTICLE 6.  
  
 Remedies and Foreclosure 
  
 6.1 Remedies: If an Event of Default shall occur, Beneficiary may, at
Beneficiary’s election and by or through Trustee or otherwise, exercise any or all of the following rights, remedies and recourses: 
  
 (a) Acceleration: Declare the Obligations to be immediately due and payable, without notice of intent to accelerate, notice of
acceleration or any further notice, presentment, protest, demand or action of any nature whatsoever (each of which hereby is expressly waived by Grantor), whereupon the same become immediately due and payable. 
  
 (b) Entry on Mortgaged Property: Enter upon the
Mortgaged Property and take exclusive possession thereof and of all books and records relating thereto. If Grantor remains in possession of all or any part of the Mortgaged Property after an Event of Default and without Beneficiary’s prior
written consent thereto, Beneficiary may invoke any and all legal remedies to dispossess Grantor, including specifically one or more actions for forcible detainer, trespass to try title and writ of restitution. Nothing contained in the foregoing
sentence shall, however, be construed to impose any greater obligation or any prerequisites to acquiring possession of the Mortgaged Property after an Event of Default than would have existed in the absence of such sentence. 
  
 (c) Operation of Mortgaged Property: Hold, lease,
manage, operate or otherwise use or permit the use of the Mortgaged Property, either by itself or by other persons, firms or entities, in such manner, for such time and upon such other terms as Beneficiary may deem to be prudent and reasonable under
the circumstances (making such repairs, alterations, additions and improvements thereto and taking any and all other action with reference thereto, from time to time, as Beneficiary shall deem necessary or desirable). 

 (d) Foreclosure and Sale: Sell or offer for sale the Mortgaged Property, or any
interest or estate in the Mortgaged Property, in such portions, order and parcels as Beneficiary may determine, with or without having first taken possession of same, to the highest bidder for cash at public auction. Beneficiary and Trustee shall
comply with the requirements of the Texas Property Code as then in effect (or other applicable law) with regard to any such sale. The affidavit of any person having knowledge of the facts regarding such sale and the manner in which it was conducted
shall be prima facie evidence of such facts. At any such sale (i) it shall not be necessary for Trustee to have physically present, or to have constructive possession of, the Mortgaged Property (Grantor hereby covenanting and agreeing to deliver to
Trustee any portion of the Mortgaged Property not actually or constructively possessed by Trustee immediately upon demand by Trustee) and the title to and right of possession of any such property shall pass to the purchaser thereof as completely as
if the same had been actually present and delivered to purchaser at such sale, (ii) each instrument of conveyance executed by Trustee shall contain a general warranty of title, binding upon Grantor, (iii) each and every recital contained in any
instrument of conveyance made by Trustee shall conclusively establish the truth and accuracy of the matters recited therein, including, without limitation, nonpayment of the Obligations, advertisement and conduct of such sale in the manner provided
herein and otherwise by law and appointment of any successor Trustee hereunder, (iv) any and all prerequisites to the validity thereof shall be conclusively presumed to have been performed, (v) the receipt of Trustee or of such other party or
officer making the sale shall be a sufficient discharge to the purchaser or purchasers for his or their purchase money and no such purchaser or purchasers, or his or their assigns or personal representatives, shall thereafter be obligated to see to
the application of such purchase money or be in any way answerable for any loss, misapplication or nonapplication thereof, (vi) to the fullest extent permitted by law, Grantor shall be completely and irrevocably divested of all of its right, title,
interest, claim and demand whatsoever, either at law or in equity, in and to the property sold and such sale shall be a perpetual bar both at law and in equity against Grantor, and against any and all other persons claiming or to claim the property
sold or any part thereof, by, through or under Grantor and (vii) to the extent and under such circumstances as are permitted by law, Beneficiary may be a purchaser at any such sale. Grantor hereby authorizes and empowers Trustee to execute and
deliver to any purchaser of any portion of or interest in the Mortgaged Property a good and sufficient deed of conveyance thereof with covenants of general warranty binding on Grantor and its successors and assigns, as well as a bill of sale
covering any Fixtures, with similar covenants of general warranty. If at the time of sale, Grantor or any of its successors or assigns are occupying all or any portion of the Mortgaged Property, each and all shall immediately become the tenant of
the purchaser at such sale, which tenancy shall be terminable at will, at a reasonable rental per day based upon the value of the Mortgaged Property, such rental to be due daily to the purchaser. An action of forcible detainer shall lie if the
tenant holds over after such purchaser makes demand in writing for possession of the Mortgaged Property. 
  
 (e) Deficiency. In the event the Mortgaged Property is sold at any foreclosure sale hereunder, and the proceeds thereof are not
sufficient to satisfy all of the indebtedness secured hereby, then the holder of the indebtedness secured hereby may bring an action seeking recovery of such deficiency. In such event, Grantor may have the right, pursuant to the Texas Property Code,
to request that a determination of the fair market value of the Mortgaged Property as of the date of the foreclosure sale be made. Grantor and Beneficiary hereby agree that the following procedures shall be utilized in such an event, to the extent
the same are not prohibited by the applicable provisions of the Texas Property Code. In the event Grantor requests that the fair market value of the Mortgaged Property as of the date of the foreclosure sale be ascertained for purposes of determining
the amount of any deficiency due after the sale of the Mortgaged Property, the fair market value of the Mortgaged Property as of the date of the foreclosure sale 

 will be determined by an appraiser selected by Beneficiary, unless objection to such appraiser is made by
Grantor within three (3) business days after receiving notice of the selection of such appraiser by Beneficiary. In the event Grantor objects to the identity of the appraiser selected by Beneficiary, Grantor shall designate in writing, within three
(3) business days after its objection, an appraiser which it finds satisfactory. The fair market value of the Mortgaged Property for purposes of the deficiency action shall be the amount determined by the agreement of such two appraisers. If such
two appraisers are unable to agree on the fair market value of the Mortgaged Property, the two appraisers shall, within three (3) business days after failing to agree on such fair market value, agree upon a third appraiser who shall conduct an
appraisal of the Mortgaged Property as of the date of the foreclosure sale, which appraisal shall be conclusive and binding upon Grantor and Beneficiary as to the fair market value of the Mortgaged Property as of the date of the foreclosure sale.
All costs of the appraiser selected by the Beneficiary shall be paid by Beneficiary, all costs of the appraiser selected by Grantor shall be paid by Grantor and all costs of the appraiser selected by the other two appraisers shall be split evenly
between Grantor and Beneficiary. 
  
 (f)
Trustee or Receiver: Upon, or at any time after, commencement of foreclosure of the Lien provided for herein or any legal proceedings hereunder, make application to a court of competent jurisdiction as a matter of strict right and without
notice to Grantor or regard to the adequacy of the Mortgaged Property for the repayment of the Obligations, for appointment of a receiver of the Mortgaged Property and Grantor does hereby irrevocably consent to such appointment. Any such receiver
shall have all the usual powers and duties of receivers in similar cases, including the full power to rent, maintain and otherwise operate the Mortgaged Property upon such terms as may be approved by the court, and shall apply such Rents in
accordance with the provisions of Paragraph 6.8 hereinbelow. 
  
 (g) Other: Exercise any and all other rights, remedies and recourses granted under the Loan Documents (including without limitation those set forth in Articles 7 and 9 hereinbelow) or now or hereafter existing
in equity, at law, by virtue of statute or otherwise. 
  
 6.2
Separate Sales and Installment Sales: The Mortgaged Property may be sold in one or more parcels and in such manner and order as Trustee, in his sole discretion, may elect, it being expressly understood and agreed that the right of sale
arising out of any Event of Default shall not be exhausted by any one or more sales. 
  
 6.3 Remedies Cumulative, Concurrent and Nonexclusive: Beneficiary shall have all rights, remedies and recourses granted in the Loan Documents and available at law or equity (including specifically those granted
by the Uniform Commercial Code in effect and applicable to the Mortgaged Property, the Leases and the Rents, or any portion thereof) and same (a) shall be cumulative and concurrent, (b) may be pursued separately, successively or concurrently against
Grantor, Guarantor or others obligated to repay amounts advanced pursuant to the Credit Agreement, or against the Mortgaged Property, or against any one or more of them, at the sole discretion of Beneficiary, (c) may be exercised as often as
occasion therefor shall arise, it being agreed by Grantor that the exercise or failure to exercise any of same shall in no event be construed as a waiver or release thereof or of any other right, remedy or recourse and (d) are intended to be, and
shall be, nonexclusive. 
  
 6.4 No Conditions Precedent to
Exercise of Remedies: Neither Grantor, Guarantor nor any other person hereafter obligated for payment of all or any part of the Obligations or fulfillment of all or any of the Other Obligations shall be relieved of such obligation by reason of
(a) the failure of Trustee to comply with any request of Grantor, Guarantor or of any other person so obligated to foreclose the lien of this Deed of Trust or to enforce any provisions of the other Loan Documents, (b) the release, regardless of

 consideration, of the Mortgaged Property or the addition of any other property to the Mortgaged Property, (c) any
agreement or stipulation between any subsequent owner of the Mortgaged Property and Beneficiary extending, renewing, rearranging or in any other way modifying the terms of the Loan Documents without first having obtained the consent of, given notice
to or paid any consideration to Grantor, Guarantor or such other person, and in such event Grantor, Guarantor and all such other persons shall continue to be liable to make payment according to the terms of any such extension or modification
agreement unless expressly released and discharged in writing by Beneficiary or (d) by any other act or occurrence save and except the complete payment of the Obligations and the complete fulfillment of all of the Other Obligations. 
  
 6.5 Release of and Resort to Collateral: Beneficiary may release,
regardless of consideration, any part of the Mortgaged Property without, as to the remainder, in any way impairing, affecting, subordinating or releasing the Lien created in or evidenced by this Deed of Trust or its status as a first and prior Lien
on Mortgaged Property. For payment of the Obligations, Beneficiary may resort to any other security therefor held by Trustee in such order and manner as Beneficiary may elect. 
  
 6.6 WAIVER OF REDEMPTION, NOTICE AND MARSHALLING OF ASSETS: TO THE FULLEST EXTENT PERMITTED BY LAW, GRANTOR HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES AND RELEASES (A) ALL BENEFIT THAT MIGHT ACCRUE TO GRANTOR BY VIRTUE OF ANY PRESENT OR FUTURE LAW EXEMPTING THE MORTGAGED PROPERTY FROM ATTACHMENT, LEVY OR SALE ON EXECUTION OR PROVIDING FOR ANY APPRAISEMENT,
VALUATION, STAY OF EXECUTION, EXEMPTION FROM CIVIL PROCESS, REDEMPTION OR EXTENSION OF TIME FOR PAYMENT, (B) ALL NOTICES OF ANY EVENT OF DEFAULT OR OF TRUSTEE’S ELECTION TO EXERCISE OR HIS ACTUAL EXERCISE OF ANY RIGHT, REMEDY OR RECOURSE
PROVIDED FOR UNDER THE LOAN DOCUMENTS AND (C) ANY RIGHT TO A MARSHALLING OF ASSETS OR A SALE IN INVERSE ORDER OF ALIENATION. 
  
 6.7 Discontinuance of Proceedings: In case Beneficiary shall have proceeded to invoke any right, remedy or recourse permitted under the Loan
Documents and shall thereafter elect to discontinue or abandon same for any reason, Beneficiary shall have the unqualified right so to do and, in such an event, Grantor and Beneficiary shall be restored to their former positions with respect to the
Obligations, the Other Obligations, the Loan Documents, the Mortgaged Property and otherwise, and the rights, remedies, recourses and powers of Beneficiary shall continue as if same had never been invoked. 
  
 6.8 Application of Proceeds: The proceeds of any sale of, and the
Rents and other amounts generated by the holding, leasing, operation or other use of, the Mortgaged Property or the Leases shall be applied by Beneficiary or Trustee (or the receiver, if one is appointed) to the extent that funds are so available
therefrom in the following orders of priority: 
  
 (a) first, to the payment of the costs and expenses of taking possession of the Mortgaged Property and of holding, using, leasing, repairing, improving and selling the same, including, without limitation (i) trustees’ and
receivers’ fees, (ii) court costs, (iii) attorneys’ and accountants’ fees, (iv) costs of advertisement, and (v) the payment of any and all Impositions, Liens or other rights, titles or interests equal or superior to the Lien of this
Deed of Trust (except those to which the Mortgaged Property has been sold subject to and without in any way implying Beneficiary’s prior consent to the creation thereof); 
  
 (b) second, to the payment of all amounts, other than the then unpaid principal balance of the Indebtedness
and accrued but unpaid interest which may be due to Beneficiary under the Loan Documents, together with interest thereon as provided therein; 

 (c) third, to the payment of all accrued but unpaid interest due under the Loan
Documents; 
  
 (d) fourth, to the payment of the
then unpaid principal balance of the Indebtedness; 
  
 (e) fifth, to the extent funds are available therefor out of the sale proceeds or the Rents and, to the extent known by Beneficiary and permitted by law, to the payment of any indebtedness or obligation secured by a subordinate Lien on the
Mortgaged Property; and 
  
 (f) sixth, to
Grantor, its successors or assigns, or whomsoever else shall be legally entitled thereto. 
  
 ARTICLE 7.  
  
 Assignment of Rents 
  
 7.1 Assignment: To
further secure the full and timely payment of the Obligations and the full and timely performance of the Other Obligations, Grantor hereby grants to Beneficiary a security interest in all the rights of the lessor and the landlord, and all of
Grantor’s other rights, titles and interests, in, to and under the Leases, and all Rents that arise, accrue or are derived from the Mortgaged Property, whether or not pursuant to the Leases. 
  
 7.2 Covenants: Grantor covenants with Beneficiary (i) to duly and
punctually observe, perform and comply with any and all of the representations, warranties, covenants, agreements and obligations imposed upon the landlord in the Leases; (ii) not to do or permit to be done anything to impair the security of any of
the Leases; (iii) that no rent reserved in any of the Leases has been or will be assigned; (iv) not to collect any of the Rent arising, accruing or to be derived from the Mortgaged Property more than thirty (30) days in advance of the time when the
same become due under the terms of said Leases; (v) not to discount any future accruing Rents; (vi) to maintain each of the Leases in full force and effect during the full term thereof; (vii) to appear in and defend any action or proceeding arising
under or in any manner connected with any of the Leases or the representations, warranties, covenants and agreements of the landlord thereunder or the other party or parties thereto; (viii) not to execute or grant any other assignment of lease,
assignment of rents or security interest relating to the Leases, the Rents or the Mortgaged Property or grant a security interest therein, except with prior written consent of Beneficiary; (ix) to collaterally assign and transfer to Beneficiary, at
the request of Beneficiary, any specific Leases upon any specific parts of the Mortgaged Property (said collateral assignment to be in form acceptable to Beneficiary); (x) to execute and deliver, at the request of Beneficiary, all such further
assurances and assignments in the Mortgaged Property as Beneficiary shall from time to time reasonably require; and (xi) if requested by Beneficiary, to deliver to Beneficiary executed counterparts of all Leases affecting the Mortgaged Property,
regardless of whether such Leases were or are executed before or after the date hereof. 
  
 7.3 Payments to Beneficiary: A demand on any tenant by Beneficiary for the payment of Rent shall be sufficient to warrant said tenant to make future payments of Rent to Beneficiary without the necessity of any
consent by Grantor. 
  
 7.4 Rights of Beneficiary Upon
Default: Upon or at any time during the continuance of an Event of Default, Grantor shall deliver to Beneficiary all amounts received by Grantor under the Leases and Beneficiary shall have the right to apply all amounts it receives with respect
to the Leases (regardless of whether Beneficiary receives such amounts from Grantor, the tenants under the Leases or otherwise) to the payment, in any order, of one or more of the following: (a) the cost of all alterations, renovations, 

 repairs and replacements and expenses incident to taking and retaining possession of the Mortgaged Property and the
management and operation thereof, (b) all taxes, charges, claims, assessments, water rents and any other liens and premiums for insurance maintained with respect to the Mortgaged Property, with interest on all such items, and (c) in the manner and
to the items set forth in Paragraph 6.8 hereof. Beneficiary may apply such amounts in such order of priority as to any of such items as Beneficiary in its sole discretion may determine, any statute, law, custom or use to the contrary
notwithstanding. 
  
 7.5 Further Assurances; Power of
Attorney: Grantor, upon Beneficiary’s request, shall execute, acknowledge and deliver and/or file such further instruments and do such further acts as may be reasonably necessary, desirable or proper to effectuate the intent and purposes of
this Article 7. For example only, if Beneficiary desires to have the tenant under any particular Lease make payments under such Lease directly to Beneficiary, then, at Beneficiary’s request, Grantor shall join with Beneficiary in the execution
and delivery of a letter to such tenant notifying such tenant of Beneficiary’s interest in such Lease and instructing such tenant to make all future payments under such Lease directly to Beneficiary. Grantor does hereby irrevocably constitute
Beneficiary and any successor thereto, with the full power of substitution, as its true and lawful attorney-in-fact and agent with full power and authority to act in its name, place and stead in the execution, acknowledgment, swearing to, delivery,
filing and recording of any instrument or other document, or for the taking of any other action which Beneficiary deems reasonably necessary, desirable or proper to carry out more effectively the intent and purposes of this Article 7. The power of
attorney granted herein shall be deemed to be coupled with an interest, shall be irrevocable, shall survive the death, disability, dissolution, liquidation or other termination of Grantor and shall be binding on all successors and assigns of
Grantor. 
  
 7.6 Effect of Foreclosure: Any foreclosure of
this Deed of Trust or any other lien securing payment of the Obligations, or the execution and delivery of any deed in lieu of any such foreclosure, shall not terminate any of the Leases, but rather such Leases shall remain in full force and effect;
provided, however, the person or entity who acquires the Mortgaged Property (or any applicable portion thereof) at such foreclosure sale or by deed in lieu of such foreclosure shall have the right to terminate any or all of such Leases relating to
the portion of the Mortgaged Property so acquired by giving written notice thereof to the applicable tenants within sixty (60) days after the date of such acquisition. 
  
 7.7 INDEMNITY: BENEFICIARY SHALL NOT BE OBLIGATED TO PERFORM OR DISCHARGE, NOR DOES IT HEREBY UNDERTAKE TO PERFORM OR
DISCHARGE, ANY OBLIGATION, DUTY OR LIABILITY UNDER THE LEASES, OR UNDER OR BY REASON OF THIS DEED OF TRUST, AND GRANTOR SHALL AND DOES HEREBY AGREE TO INDEMNIFY BENEFICIARY FOR AND TO HOLD BENEFICIARY HARMLESS OF AND FROM ANY AND ALL LIABILITY, LOSS
OR DAMAGE WHICH IT MAY OR MIGHT INCUR UNDER ANY OF THE LEASES OR UNDER OR BY REASON OF THIS ARTICLE 7 AND OF AND FROM ANY AND ALL CLAIMS AND DEMANDS WHATSOEVER WHICH MAY BE ASSERTED AGAINST IT BY REASON OF ANY ALLEGED OBLIGATIONS OR UNDERTAKINGS ON
ITS PART TO PERFORM OR DISCHARGE ANY OF THE TERMS, COVENANTS OR AGREEMENTS CONTAINED IN ANY OF THE LEASES OR THIS DEED OF TRUST, EXCEPT FOR THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF BENEFICIARY. SHOULD BENEFICIARY INCUR ANY SUCH LIABILITY, LOSS
OR DAMAGE UNDER ANY OF THE LEASES OR UNDER OR BY REASON OF THIS ARTICLE 7, OR IN THE DEFENSE OF ANY SUCH CLAIMS OR DEMANDS, THE AMOUNT THEREOF, INCLUDING ALL COSTS, EXPENSES AND REASONABLE ATTORNEYS’ FEES, SHALL BE SECURED HEREBY, AND GRANTOR
SHALL REIMBURSE BENEFICIARY THEREFOR (WITH INTEREST THEREON AT THE DEFAULT RATE) IMMEDIATELY UPON DEMAND. 

 ARTICLE 8.  
  
 Condemnation 
  
 8.1 General: Immediately upon its obtaining knowledge of the institution or the threatened institution of any proceeding for the condemnation of
the Mortgaged Property, Grantor shall notify Trustee and Beneficiary of such fact. Grantor shall then, if requested by Beneficiary, file or defend its claim thereunder and prosecute same with due diligence to its final disposition and shall cause
any awards or settlements to be paid over to Beneficiary for disposition pursuant to the terms of this Deed of Trust. Grantor may be the nominal party in such proceeding but Beneficiary shall be entitled to participate in and to control same and to
be represented therein by counsel of its own choice, and Grantor will deliver, or cause to be delivered, to Beneficiary such instruments as may be requested by it from time to time to permit such participation. If the Mortgaged Property is taken or
diminished in value, or if a consent settlement is entered, by or under threat of such proceeding, the award or settlement payable to Grantor by virtue of its interest in the Mortgaged Property shall be, and by these presents is, assigned,
transferred and set over unto Beneficiary to be held by it, in trust, subject to the Lien of this Deed of Trust, and disbursed as follows: 
  
 (a) if (i) all of the Mortgaged Property is taken, (ii) so much of the Mortgaged Property is taken, or the Mortgaged Property is so
diminished in value, that the remainder thereof cannot (in Beneficiary’s reasonable judgment) continue to be operated profitably for the purpose it was being used immediately prior to such taking or diminution, (iii) an Event of Default shall
have occurred, or (iv) the Mortgaged Property is partially taken or diminished in value and (in Beneficiary’s judgment) need not be rebuilt, restored or repaired in any manner, then in any such event the entirety of the sums so paid to
Beneficiary shall be applied by it in the order recited in Paragraph 8.2 hereinbelow; or 
  
 (b) if (i) only a portion of the Mortgaged Property is taken and the portion remaining can (in Beneficiary’s reasonable judgment),
with rebuilding, restoration or repair, be profitably operated for the purpose referred to in Paragraph 8.1(a)(ii) hereinabove, (ii) none of the other facts recited in Paragraph 8.1(a) hereinabove exists, (iii) Grantor shall deliver to Beneficiary
plans and specifications for such rebuilding, restoration or repair acceptable to Beneficiary, which acceptance shall be evidenced by Beneficiary’s written consent thereto, and (iv) Grantor shall thereafter commence the rebuilding, restoration
or repair and complete same, all in substantial accordance with the plans and specifications and within six (6) months after the date of the taking or diminution in value and shall otherwise comply with Paragraph 3.2 hereinabove, then such sums
shall be paid to Grantor to reimburse Grantor for money spent in the rebuilding, restoration or repair; otherwise same shall be applied by Beneficiary in the order recited in Paragraph 8.2 hereinbelow. 
  
 8.2 Application of Proceeds: All proceeds received by Beneficiary with
respect to a taking or a diminution in value of the Mortgaged Property shall be applied in the following order of priority: 
  
 (a) first, to reimburse Trustee or Beneficiary for all costs and expenses, including reasonable attorneys’ fees, incurred in
connection with collection of the said proceeds; 
  
 (b) thereafter, the balance, if any, shall be applied in the order of priority recited in Paragraph 6.8(b) through (f) hereinabove; provided, however, that if such proceeds are required under Paragraph 8.1(b) hereinabove to be applied to
the rebuilding, restoration or repair of the Mortgaged Property, the provisions of Paragraph 7.6 of the Credit Agreement shall determine the conditions precedent for utilizing such proceeds for such purpose and the manner for distributing such
proceeds. 

 ARTICLE 9.  
  
 Fixtures 
  
 9.1 Security Interest: This Deed of Trust (a) shall be construed as a deed of trust on real property and (b) shall also constitute and serve as a
“security agreement” on the Fixtures within the meaning of, and shall constitute until the grant of this Deed of Trust shall terminate as provided in Article 2 hereinabove, a first and prior security interest under, the Uniform Commercial
Code (being Chapter 9 of the Texas Business and Commerce Code (the “Code”), as to property within the scope thereof and situated in the State of Texas) with respect to the Fixtures. To this end, Grantor has Granted,
Bargained, Conveyed, Assigned, Transferred and Set Over, and by these presents does Grant, Bargain, Convey, Assign, Transfer and Set Over, unto Beneficiary, a first and prior security interest and all of Grantor’s right, title and interest in,
to, under and with respect to the Fixtures to secure the full and timely payment of the Obligations and the full and timely performance and discharge of the Other Obligations. 
  
 9.2 Uniform Commercial Code Remedies: Beneficiary shall have all the rights, remedies and recourses with respect to
the Fixtures afforded to it by the aforesaid Uniform Commercial Code (being Chapter 9 of the Texas Business and Commerce Code, as to property within the scope thereof and situated in the State of Texas) in addition to, and not in limitation of, the
other rights, remedies and recourses afforded by the Loan Documents. 
  
 9.3 Fixture Filing: This Deed of Trust shall also constitute a “fixture filing” for the purposes of Section 9.502(b) of the Texas Business and Commerce Code. Information concerning the security interest herein granted may
be obtained at the addresses set forth on the first page hereof. For purposes of the security interest herein granted, the respective addresses of Debtor (Grantor) and Secured Party (Beneficiary) are set forth in the opening recital of this Deed of
Trust. 
  
 9.4 Foreclosure of Security Interest: If an
Event of Default shall occur, Beneficiary may elect, in addition to exercising any and all other rights, remedies and recourses set forth in Article 6 or referred to in Paragraph 9.2 hereinabove, to proceed in the manner set forth in Section 9.604
of Chapter 9 of the Texas Business and Commerce Code relating to the procedure to be followed when a security agreement covers both real and personal property. Except as otherwise set forth in this Paragraph, at any foreclosure and sale as described
in Paragraph 6.1(d) hereinabove, it shall be deemed that the Trustee proceeded under such Section 9.604 as to the Fixtures, and that such sale passed title to all of the Mortgaged Property and other property described herein to the purchaser
thereat, including without limitation the Fixtures. Beneficiary, acting by and through the Trustee or any other representative, may elect either prior to or at such sale not to proceed under such Section 9.604 by notifying Grantor of the manner in
which Beneficiary intends to proceed with regard to the Fixtures. 
  
 ARTICLE 10.  
  
 Concerning the Trustee

  
 10.1 No Required Action: Trustee shall not be required
to take any action toward the execution and enforcement of the trust hereby created or to institute, appear in or defend any action, suit or other proceeding in connection therewith where in his opinion such action will be likely to involve him in
expense or liability, unless requested so to do by a written instrument signed by Beneficiary and, if Trustee so requests, unless Trustee is tendered security and indemnity satisfactory to him against any and 

 all costs, expense and liability arising therefrom. Trustee shall not be responsible for the execution, acknowledgement
or validity of the Loan Documents, or for the proper authorization thereof, or for the sufficiency of the Lien purported to be created hereby, and makes no representation in respect thereof or in respect of the rights, remedies and recourses of
Beneficiary. 
  
 10.2 Certain Rights: With the approval of
Beneficiary, Trustee shall have the right to take any and all of the following actions: (a) to select, employ and advise with counsel (who may be, but need not be, counsel for Beneficiary) upon any matters arising hereunder, including the
preparation, execution and interpretation of the Loan Documents, and shall be fully protected in relying as to legal matters on the advice of counsel, (b) to execute any of the trusts and powers hereof and to perform any duty hereunder either
directly or through his agents or attorneys, (c) to select and employ, in and about the execution of his duties hereunder, suitable accountants, engineers and other experts, agents and attorneys-in-fact, either corporate or individual, not regularly
in the employ of Trustee, and Trustee shall not be answerable for any act, default or misconduct of any such accountant, engineer or other expert, agent or attorney-in-fact, if selected with reasonable care, or for any error of judgment or act done
by Trustee in good faith, or be otherwise responsible or accountable under any circumstances whatsoever, except for Trustee’s gross negligence or bad faith and (d) any and all other lawful action as Beneficiary may instruct Trustee to take to
protect or enforce Beneficiary’s rights hereunder. Trustee shall not be personally liable in case of entry by him, or anyone entering by virtue of the powers herein granted him, upon the Mortgaged Property for debts contracted or liability or
damages incurred in the management or operation of the Mortgaged Property. Trustee shall have the right to rely on any instrument, document or signature authorizing or supporting any action taken or proposed to be taken by him hereunder, believed by
him in good faith to be genuine. Trustee shall be entitled to reimbursement for expenses incurred by him in the performance of his duties hereunder and to reasonable compensation for such of his services hereunder as shall be rendered. Grantor will,
from time to time, pay the compensation due hereunder to Trustee and reimburse Trustee for, and save him harmless against, any and all liability and expenses which may be incurred by him in the performance of his duties. 
  
 10.3 Retention of Moneys: All moneys received by Trustee shall, until
used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated in any manner from any other moneys (except to the extent required by law) and Trustee shall be under no liability for
interest on any moneys received by him hereunder. 
  
 10.4
Successor Trustees: Trustee may resign by the giving of notice of such resignation in writing to Beneficiary. If Trustee shall die, resign or become disqualified from acting in the execution of this trust, or shall fail or refuse to execute
the same when requested by Beneficiary so to do, or if, for any reason, Beneficiary shall prefer to appoint a substitute trustee to act instead of the aforenamed Trustee, Beneficiary shall have full power to appoint a substitute trustee and, if
preferred, several substitute trustees in succession who shall succeed to all the estate, rights, powers and duties of the aforenamed Trustee. Such appointment may be executed by any authorized agent of Beneficiary, and if such Beneficiary be a
corporation and such appointment be executed in its behalf by any officer of such corporation, such appointment shall be conclusively presumed to be executed with authority and shall be valid and sufficient without proof of any action by the Board
of Directors or any superior officer of the corporation. Grantor hereby ratifies and confirms any and all acts which the aforenamed Trustee, or his successor or successors in this trust, shall do lawfully by virtue hereof. 
  
 10.5 Perfection of Appointment: Should any deed, conveyance or
instrument of any nature be required from Grantor by any successor Trustee to more fully and certainly vest in and confirm to such new Trustee such estates, rights, powers and duties, then, upon request by such Trustee, any and all such deeds,
conveyances and instruments shall be made, executed, acknowledged and delivered and shall be caused to be recorded and/or filed by Grantor. 

 10.6 Succession Instruments: Any new Trustee appointed pursuant to any of the provisions hereof
shall, without any further act, deed or conveyance, become vested with all the estates, properties, rights, powers and trusts of its or his predecessor in the rights hereunder with like effect as if originally named as Trustee herein; but
nevertheless, upon the written request of Beneficiary or of the successor Trustee, the Trustee ceasing to act shall execute and deliver an instrument transferring to such successor Trustee, upon the trusts herein expressed, all the estates,
properties, rights, powers and trusts of the Trustee so ceasing to act, and shall duly assign, transfer and deliver any of the property and moneys held by such Trustee to the successor Trustee so appointed in its or his place. 
  
 10.7 No Representation by Trustee or Beneficiary: By accepting or
approving anything required to be observed, performed or fulfilled or to be given to Trustee or Beneficiary pursuant to the Loan Documents, including (but not limited to) any officer’s certificate, balance sheet, statement of profit and loss or
other financial statement, survey, appraisal or insurance policy, neither Trustee nor Beneficiary shall be deemed to have warranted, consented to, or affirmed the sufficiency, legality, effectiveness or legal effect of the same, or of any term,
provision or condition thereof, and such acceptance or approval thereof shall not be or constitute any warranty, consent or affirmation with respect thereto by Trustee or Beneficiary. 
  
 ARTICLE 11.  
  
 Miscellaneous 
  
 11.1 Beneficiary’s Right to Perform the Obligations: If Grantor shall fail, refuse or neglect to make any payment or perform any act required
by this Deed of Trust then at any time thereafter, and without notice to or demand upon Grantor and without waiving or releasing any other right, remedy or recourse Beneficiary may have because of same, Beneficiary may (but shall not be obligated
to) make such payment or perform such act for the account of and at the expense of Grantor, and shall have the right to enter upon the Land and into the Buildings for such purpose and to take all such action thereon and with respect to the Mortgaged
Property, as it may deem necessary or appropriate. If Beneficiary shall elect to pay any Imposition or other sums due with reference to the Mortgaged Property, Beneficiary may do so in reliance on any bill, statement or assessment procured from the
appropriate Governmental Authority or other issuer thereof without inquiring into the accuracy or validity thereof. Similarly, in making any payments to protect the security intended to be created by this Deed of Trust, Beneficiary shall not be
bound to inquire into the validity of any apparent or threatened adverse title, lien, encumbrance, claim or charge before making an advance for the purpose of preventing or removing the same. GRANTOR SHALL INDEMNIFY BENEFICIARY FOR ALL LOSSES,
EXPENSES, DAMAGE, CLAIMS AND CAUSES OF ACTION, INCLUDING REASONABLE ATTORNEYS’ FEES, INCURRED OR ACCRUING BY REASON OF ANY ACTS PERFORMED BY BENEFICIARY PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH OR BY REASON OF ANY OTHER PROVISION IN THIS
DEED OF TRUST. All sums paid by Beneficiary pursuant to this Paragraph, and all other sums expended by Beneficiary to which it shall be entitled to be indemnified, together with interest thereon at the maximum rate allowed by law from the date of
such payment or expenditure, shall be deemed made at the instance of Grantor, shall constitute additions to the Obligations, shall be secured by the Liens created by this Deed of Trust and shall be paid by Grantor to Beneficiary upon demand.
Interest under this Paragraph shall be computed at the Default Rate. 
  
 11.2 Survival of Other Obligations: Each and all of the Other Obligations shall survive the execution and delivery of the Loan Documents, and the consummation of the loan called for therein, and shall continue in full force and
effect until the Obligations shall have been paid in full. 

 11.3 Further Assurances: Grantor, upon the request of Trustee, will execute, acknowledge, deliver
and record and/or file such further instruments and do such further acts as may be necessary, desirable or proper to carry out more effectively the purpose of this Deed of Trust and to subject to the Liens hereof any property intended by the terms
hereof to be covered thereby, including specifically but without limitation, any renewals, additions, substitutions, replacements, betterments or appurtenances to the then Mortgaged Property. 
  
 11.4 Recording and Filing: Grantor will cause this Deed of Trust and
all amendments, modifications and supplements hereto and substitutions herefor to be recorded, filed, re-recorded and refiled in such manner and in such places as Trustee or Beneficiary shall reasonably request, and will pay all such recording,
filing, re-recording and refiling taxes, fees and other charges. 
  
 11.5 Notices: All notices or other communications required or permitted to be given pursuant to this Deed of Trust shall be in writing and shall be considered as properly given if mailed by first class United States mail, postage
prepaid, registered or certified with return receipt requested, or by delivering same in person to the intended addressee or by prepaid telegram. Notice so mailed shall be effective upon its deposit. Notice given in any other manner shall be
effective only if and when received by the addressee. For purposes of notice, the addresses of the parties shall be as set forth in and the opening recital of this Deed of Trust; provided, however, that either party shall have the right to change
its address for notice hereunder to any other location within the continental United States by the giving of thirty (30) days’ notice to the other party in the manner set forth hereinabove. 
  
 11.6 Compliance with Usury Laws: Reference is hereby made to the
provisions of the Credit Agreement regarding compliance with usury laws. Such provisions are hereby incorporated herein by this reference. 
  
 11.7 No Waiver: Any failure by Trustee or Beneficiary to insist, or any election by Trustee or Beneficiary not to insist, upon strict performance
by Grantor of any of the terms, provisions or conditions of the Loan Documents shall not be deemed to be a waiver of same or of any other terms, provision or condition thereof and Trustee or Beneficiary shall have the right at any time or times
thereafter to insist upon strict performance by Grantor of any and all of such terms, provisions and conditions. 
  
 11.8 [Intentionally Omitted] 
  
 11.9 Covenants Running with the Land: All Other Obligations contained in this Deed of Trust are intended by the parties to be, and shall be
construed as, covenants running with the Mortgaged Property until this Deed of Trust is released by Beneficiary. 
  
 11.10 Successors and Assigns: All of the terms of this Deed of Trust shall apply to, be binding upon and inure to the benefit of the parties
hereto, their successors, assigns, heirs and legal representatives, and all other persons claiming by, through or under them. 
  
 11.11 Severability: If any provision of this Deed of Trust or the application thereof to any person or circumstance shall, for any reason and to
any extent, be invalid or unenforceable, then neither the remainder of this Deed of Trust in which such provision is contained nor the application of such provision to other persons or circumstances shall be affected thereby, but rather shall be
enforced to the greatest extent permitted by law. 
  
 11.12
Modification: The Loan Documents contain the entire agreements between the parties relating to the subject matter hereof and thereof and all prior agreements relative thereto which are not contained herein or therein are terminated. The Loan
Documents may not be amended, revised, waived, 

 discharged, released or terminated orally but only by a written instrument or instruments executed by the party against
which enforcement of the amendment, revision, waiver, discharge, release or termination is asserted. Any alleged amendment, revision, waiver, discharge, release or termination which is not so documented shall not be effective as to any party.

  
 11.13 Release: If all the Obligations has been paid and
all the Other Obligations required to have been performed at such time have been performed, then the Lien created by this Deed of Trust shall be released by Beneficiary upon request of Grantor, at Grantor’s cost and expense, by instrument
reasonably satisfactory to Beneficiary. 
  
 11.14 Applicable
Law: This Deed of Trust shall be governed by and construed according to the internal laws of the State of Texas from time to time in effect, without giving affect to its choice of law principles. 
  
 11.15 Headings: The Article, Paragraph and Subparagraph entitlements
hereof are inserted for convenience of reference only and shall in no way alter, modify or define, or be used in construing, the text of such Articles, Paragraphs or Subparagraphs. 
  
 11.16 Gender and Plurals: In this Deed of Trust, whenever the context so requires, the masculine gender includes the
feminine or neuter, and the singular number includes the plural, and conversely. 
  
 11.17 Credit Agreement: Reference is hereby made for all purposes to the Credit Agreement. In event of a conflict between the terms and provisions hereof and the Credit Agreement, this Deed of Trust shall
govern. 
  
 EXECUTED as of the date first above written.

  

			
	SPANSION LLC
		
	By:	 	 /s/ Andrea Rubin

	Name:	 	Andrea Rubin
	Title:	 	Assistant Secretary

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