Document:

Office Lease, dated May 23, 2003 between Registrant and Kashiwa Fudosan America

 Exhibit 10.10 
  
 OYSTER POINT MARINA PLAZA 
  
 Office Lease 
  
 of 
  
 SUITE 317 
  
 to 
  
 SiRF Technology, Inc., 
  
 a Delaware corporation 
  
 395 Oyster Point Boulevard 
  
 South San Francisco, CA 94080 

 OYSTER POINT MARINA PLAZA 
  
 Office Lease 
  
 THIS OFFICE LEASE (the “Lease”) is entered into as of May 23, 2003, by and between Kashiwa Fudosan America, Inc., a California
corporation (“Landlord”) and SiRF Technology, Inc., a Delaware corporation (“Tenant”). 
  
 1 BASIC LEASE TERMS 
  
 1.1 LEASE OF PREMISES. Landlord leases to Tenant, and Tenant rents and hires from Landlord, the premises described in § 1.3 below, in the building known by the street address
395 Oyster Point Boulevard (the “Building”) in the City of South San Francisco, County of San Mateo, State of California, on the property described in § 1.6 below, in the business park commonly known as Oyster Point Marina Plaza (the
“Complex”), for the term stated in § 1.4 below, for the rents hereinafter reserved, and upon and subject to the terms, conditions (including limitations, restrictions, and reservations), and covenants hereinafter provided. The
Building and the Complex are more particularly described and depicted in Exhibit A which is attached hereto. Each party hereby expressly covenants and agrees to observe and perform all of the conditions and covenants herein contained on its part to
be observed and performed. 
  
 1.2 SUMMARY
TABLE. The parties agree that the following table (the “Table”) sets forth in summary form the basic terms of the Lease, including the specific space comprising the Premises and, with respect to such space, the Term of
the Lease, the usable and rentable square footage, the Base Rent, Base Year, and Tenant’s Share, as all of such terms are defined below: 
  

																		
	 PERIOD

	  	SUITE
NO.

	  	RSF

	  	USF

	  	MONTHLY
BASE
RENT

	  	T’S
SHARE
PROPERTY

	 	 	T’S
SHARE
COMPLEX

	 	 	BASE
YEAR

	 Commencement Date to 8/31/04
	  	317	  	3,736	  	3,249	  	$	5,230.40	  	1.605	%	 	0.8043	%	 	2004
	 9/1/04 to 8/31/05
	  	317	  	3,736	  	3,249	  	$	5,417.20	  	1.605	%	 	0.8043	%	 	2004
	 9/1/05 to 8/31/06
	  	317	  	3,736	  	3,249	  	$	5,604.00	  	1.605	%	 	0.8043	%	 	2004

  
 In the event of any conflict between
the terms contained in the Table, and the terms contained in subsequent sections of the Lease, the terms of the Table shall control, except that any dates stated in the Table are subject to adjustment as appropriate to the extent any other
provisions of the Lease provide for adjustments to the Commencement Date and/or the Expiration Date. 
  
 1.3 PREMISES. The premises leased to Tenant (the “Premises”) are a portion of the third (3rd) floor of the Building and are commonly known as Suite 317, as shown on the floor
plan annexed hereto as Exhibit B. The Premises also include all fixtures and equipment which are attached thereto, except items not deemed to be included therein and which are removable by Tenant as provided in Article 10 below. Landlord and
Tenant agree that the usable and rentable area of the Premises, and the respective rentable areas of the Property (as defined in § 1.6 below) and Complex, for all purposes under this Lease, are as follows and as specified in the Table:

  

			
	 Property’s Rentable Area:
	  	232,733 rsf
	 Complex’s Rentable Area:
	  	464,502 rsf

  

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 Tenant acknowledges that it has caused its architect to verify the numbers stated in the Table and herein relating to the
measurements of such spaces prior to the Commencement Date of this Lease or has had an opportunity to do so. 
  
 1.3.1 Temporary Space Occupancy Permit. After July 31, 2003, Tenant shall have the right to occupy Suite 505 in the Building, comprising
approximately 11,511 rentable square feet of space (the “Temporary Space”) on a temporary basis subject, mutatis mutandis, to all the terms and conditions of this Lease, except that Tenant shall be deemed a tenant at sufferance of
the Temporary Space. Tenant shall pay Three Thousand Five Hundred Dollars ($3,500.00) per month as Rent reserved hereunder for its use of the Temporary Space, prorated to reflect the actual period of Tenant’s occupancy. Tenant shall give
Landlord not less than two (2) days’ written notice prior to taking possession of the Temporary Space, and Tenant agrees to vacate the Temporary Space within three (3) days after Substantial Completion of Landlord’s Work in the Premises.
Tenant agrees to accept the Temporary Space “as is,” and Landlord shall have no obligation to modify or improve the Temporary Space in any way for Tenant’s occupancy. Tenant shall vacate the Temporary Space on or before the date of
any Termination Notice that Tenant may give to Landlord pursuant to § 3.4 below. 
  
 1.4 TERM. The term (the “Term”) for which the Premises are hereby leased shall commence on the “Commencement Date,” which shall be the earlier to occur of (i) the day on which the Premises
are ready for occupancy (as defined in Article 3) or (ii) the day on which Tenant or anyone claiming under or through Tenant first occupies the Premises for business, and shall end at noon on the “Expiration Date,” which shall be the last
day of the calendar month in which occurs the day preceding the third (3rd) anniversary of the Commencement Date or any earlier date upon which the Term may expire or be cancelled or terminated pursuant to any of the conditions or covenants of this
Lease or pursuant to law. Promptly following the Commencement Date the parties hereto shall, if required by Landlord, enter into a supplementary agreement fixing the dates of the Commencement Date and the Expiration Date in the form which is
attached hereto as Exhibit E and incorporated herein by reference. 
  
 1.4.1 Option to Extend. Tenant is hereby granted one (1) option to extend (the “Extension Option”) the Term of the Lease for an additional period of two (2) consecutive Lease Years (the “Extension Period”).
The Extension Period terns shall begin the first day following the Expiration Date of the Lease and shall take effect on the same terms and conditions in effect under the Lease immediately prior to the Extension Period, except that (i) Tenant shall
have no further right to extend and (ii) monthly Base Rent shall be the rate which is Fair Market Value (as defined below). The Fair Market Value shall be the effective rent (face rate less free rent) being charged for comparable space in comparable
buildings leased on comparable terms, including annual escalations and such other terms. 
  

	 	(a)	Exercise of Option. The Extension Option may be exercised only by (i) delivering in person to Landlord’s Building Manager in the Building Office written notice of
Tenant’s irrevocable election to exercise no earlier than December 1, 2006, and no later than March 1, 2007, and (ii) collecting and retaining in exchange for such notice of exercise an original written receipt therefor signed and
dated by Landlord’s Building Manager. Tenant’s exercise of its Extension Option shall not be effective or valid if there is any deviation in the timing or manner of exercise prescribed herein. 

  

	 	(b)	Failure to Exercise. If Tenant shall fail validly and timely to exercise the option herein granted, the Extension Option shall terminate and shall be null and void and of no
further force and effect. 

  

	 	(c)	Fair Market Value. Provided that Tenant has validly exercised its option when and as required hereunder, Landlord shall, on or before April 1, 2007, provide written
notice to Tenant of its determination of the Fair Market Value. Within ten (10) days after receiving such determination (and in no event later than May 1, 2007) (“Tenant’s Review Period”), Tenant shall irrevocably elect, in
writing, to do one of the following: (i) accept Landlord’s determination; or (ii) object to Landlord’s determination and with such objection set forth in 

  
  

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	 	    	writing Tenant’s determination of the Fair Market Value. If Tenant so objects, Landlord and Tenant shall attempt in good faith to agree upon such Fair Market Value using their
best good-faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (15) days following Tenant’s Review Period (the “Outside Agreement Date”), then Landlord shall submit each party’s determination to
arbitration in accordance with the then-current rules and procedures of the American Arbitration Association. If Tenant objects to Landlord’s determination of Fair Market Value, Tenant shall pay Rent at the Fair Market Value determined by
Landlord until the matter is resolved by binding arbitration as provided below, subject to retroactive adjustment after the matter is so resolved. If Tenant fails so to accept or object to Landlord’s determination of Fair Market Value in
writing within Tenant’s Review Period, Tenant shall conclusively be deemed to have approved of the Fair Market Value as determined by Landlord. 

  

	 	(d)	Appointment of Arbitrators. Not later than fifteen (15) days following the Outside Agreement Date, Landlord and Tenant shall each appoint one arbitrator who shall by
profession be a real estate broker who shall have been active over the ten-year period ending on the date of such appointment in the leasing of commercial properties within northern San Mateo County. The determination of the arbitrators shall be
limited solely to the issue of whether Landlord’s or Tenant’s submitted Fair Market Value for the Premises is the more accurate as determined by the arbitrators, taking into account the requirements of this § 1.4.1 et seq.

  

	 	(e)	Appointment of Third Arbitrator. The two (2) arbitrators so appointed shall within fifteen (15) days of the date of the appointment of the last-appointed arbitrator agree
upon and appoint a third arbitrator, who shall be qualified under the same criteria as set forth hereinabove for qualification of the initial two arbitrators. 

  

	 	(f)	Arbitrators’ Decision. The three (3) arbitrators shall, within thirty (30) days of the appointment of the third arbitrator, reach a decision as to whether the parties
shall use Landlord’s or Tenant’s submitted Fair Market Value, and shall notify Landlord and Tenant thereof. The decision of the majority of the three (3) arbitrators shall be binding upon Landlord and Tenant. The arbitrators shall not be
permitted to set Fair Market Value to any level other than either Landlord’s or Tenant’s submitted Fair Market Value. 

  

	 	(g)	Failure to Appoint. If either Landlord or Tenant fails to appoint an arbitrator within fifteen (15) days after the Outside Agreement Date, the arbitrator timely appointed by
one of the parties shall reach a decision, notify Landlord and Tenant thereof, and such arbitrator’s decision shall be binding upon Landlord and Tenant. If the two (2) arbitrators fail to agree upon and appoint a third arbitrator, both
arbitrators shall be dismissed and the matter to be decided shall be forthwith submitted to arbitration under the Commercial Arbitration Rules of the American Arbitration Association then in effect, but subject to the instructions set forth in this
§ 1.4.1 et seq 

  

	 	(h)	Cost of Arbitration. The cost of arbitration shall be paid by Landlord and Tenant equally. 

  

	 	(i)	Default. Tenant’s exercise of the Extension Option shall, at Landlord’s election, be null and void if Tenant is in Default on the date of exercise or at any time
thereafter and prior to commencement of the Extension Period. Tenant’s exercise of the Extension Option shall not operate to cure any Default by Tenant nor to extinguish or impair any rights or remedies of Landlord arising by virtue of such
Default. If the Lease or Tenant’s right to possession of the Premises shall terminate before Tenant shall have exercised the Extension Option, then immediately upon such termination the Extension Option shall simultaneously terminate and become
null and void. 

  

	 	(j)	Time. Time is of the essence of this Extension Option. 

  

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 1.5 RENT. The “Rent” reserved under this Lease, for the Term thereof,
shall consist of the following: 
  

	 	A.	“Base Rent” as set forth in the Table for the various spaces and periods described therein per month, which shall be payable in advance on the first day of each and every
calendar month during the Term of this Lease, except as provided in § 1.5.3 below; and 

  

	 	B.	“Additional Rent” consisting of any and all other sums of money as shall become payable by Tenant to Landlord hereunder; and Landlord shall have the same remedies for
default in the payment of Additional Rent as for a default in payment of Base Rent). 

  

	 	C.	Tenant shall have the right to install up to four antennae on the roof of 395 Oyster Point during the term and any option periods at no additional rent. 

  
 1.5.1 Payment of Rent. Tenant shall pay the Base Rent and
Additional Rent promptly when due, without demand therefor and without any abatement, deduction, or setoff whatsoever, except as may be expressly provided in this Lease. Tenant shall pay the Rent to Landlord, in lawful money of the United States of
America, at Landlord’s office at the Complex or at such other place, or to such agent and at such place, as Landlord may designate by notice to Tenant. If the Commencement Date occurs on a day other than the first day of a calendar month, the
Base Rent for such calendar month shall be prorated based on a 30-day month, and the balance of the first month’s Base Rent theretofore paid shall be credited against the next monthly installment of Base Rent. 
  
 1.5.2 Interest and Late Charges. If Tenant fails to pay any
Rent when due, the unpaid amounts shall bear interest from the due date until paid at a rate per annum equal to the Prime Rate plus five percent (5%) or, if less, at the highest rate of interest permitted by applicable law. As used herein,
“Prime Rate” means the prime rate published in the Money Rates section of the Wall Street Journal (Western edition) as the same may change from time to time or in a similar publication if the Wall Street Journal ceases
publication or ceases publication of its Money Rates section during the Term. Tenant acknowledges that the late payment of any monthly Rent will cause Landlord to lose the use of that money and incur costs and expenses not contemplated under this
Lease, including administrative and collection costs and processing and account expenses, the exact amount of which it is difficult to ascertain. Therefore, in addition to interest, if any such installment is not received by Landlord within five (5)
days from the date it is due, Tenant shall pay Landlord a late charge equal to ten percent (10%) of such installment. Landlord and Tenant agree that this late charge represents a reasonable estimate of such costs and expenses and is fair
compensation to Landlord for the loss suffered from such nonpayment by Tenant. In addition, any check returned by the bank for any reason will be considered late and will be subject to all late charges plus an additional returned check fee of Twenty
Dollars ($20.00). After two such occasions upon which checks have been returned in any twelve-month period, Landlord will have the right to require payment by a cashier’s check or money order. Acceptance of any interest or late charge shall not
constitute a waiver of Tenant’s default with respect to such nonpayment by Tenant nor prevent Landlord from exercising any other rights or remedies available to Landlord under this Lease or at law or in equity, unless the payment of such
interest and late charges is accompanied by all rentals then due and owning (notwithstanding anything to the contrary in § 20.2.1 below). 
  
 1.5.3 Base Rent Abatement. Notwithstanding anything to the contrary in this § 1.5, commencing with the first full calendar month
following the Commencement Date, Tenant’s Monthly Installment of Base Rent shall be abated for the first (1st)
month of the Term (the “Abatement Period”). If Tenant shall default under the Lease and fail to cure within the time permitted for cure thereunder, while the Abatement Period is still in effect, the Abatement Period shall thereupon
terminate, and Tenant shall commence paying the Base Rent under the Lease. In addition, if Tenant shall default under the Lease at any time and fail to cure within the time permitted for cure thereunder, Tenant shall upon demand pay Landlord the
amount of Base Rent theretofore abated, multiplied by a fraction, the numerator of which is the number of months then remaining in the 
  

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 initial Term at the time of the default, and the denominator of which is the total number of months it
the initial Term (without limiting Landlord’s other remedies). 
  
 1.6
PROPERTY. For the purposes of this Lease, the “Property” shall mean the Building and any common or public areas or facilities, easements, corridors, lobbies, sidewalks, loading areas, driveways, landscaped areas,
skywalk, parking garages and lots, and any and all other structures or facilities operated of maintained in connection with or for the benefit of the Building, and all parcels or tracts of land on which all or any portion of the Building or any of
the other foregoing items are located, and any fixtures, machinery, equipment, apparatus, Systems and Equipment (as defined in § 1.6.5 below), furniture and other personal property located thereon or therein and used in connection therewith,
whether title is held by Landlord or its affiliates. The Property shall also be deemed to include such other of the Complex’s buildings or structures (and related facilities and parcels on which the same are located) as Landlord shall have
incorporated by reference to the total square footage of the Building stated in § 1.3 above. 
  
 1.6.1 Common Areas. Tenant and its agents, employees, and invitees shall have the non-exclusive right with others designated by Landlord to
the free use of the common areas in the Property and the Complex for the common areas’ intended and normal purpose. The term common areas shall mean elevators, sidewalks, parking areas, driveways, hallways, stairways, public restrooms,
common entrances, lobbies, and other similar public areas and access ways. 
  
 1.6.2 Athletic Facility. Notwithstanding the foregoing, the common areas do not include the Building’s athletic facility (the “Athletic Facility”), which is an unsupervised and unattended
weight and exercise room and shower facility. Tenant acknowledges that Landlord presently makes available (but is not obligated under this Lease to make available) the Athletic Facility for the general use of all tenants and their officers and
employees, subject to such rules and regulations as Landlord may impose from time to time in its sole and absolute discretion regarding the use thereof. Tenant shall cause each of its officers and employees using the Athletic Facility to sign and
deliver to Landlord an “Athletic Facility Use Agreement” in the form attached hereto as Exhibit D, as such form may be revised by Landlord from time to time in its sole and absolute discretion. Tenant understands and agrees that no
individual shall be permitted use of or access to the Athletic Facility unless and until such individual shall have first signed and delivered the Athletic Facility Use Agreement to Landlord. Landlord shall have the right to limit the use of the
Athletic Facility in any manner it may deem necessary, or to discontinue the Athletic Facility altogether, at any time, in its sole and absolute discretion, and neither Tenant nor its officers or employees shall be entitled to any compensation,
credit, allowance, or offset of expenses or Rent as a result of any such limitation or discontinuance. 
  
 1.6.3 Reservation to Landlord. Notwithstanding anything to the contrary herein, possession of areas necessary for utilities, services,
safety, and operation of the Property, including the Systems and Equipment, telephone closets (whether located in the common areas or in the Premises), fire exits and stairways, perimeter walls, space between the finished ceiling of the Premises and
the slab of the floor or roof of the Property thereabove, and the use thereof, together with the right to install, maintain, operate, repair, and replace any part of the Systems and Equipment in, through, under, or above the Premises in locations
that will not materially interfere with Tenant’s use of the Premises, are hereby excepted from both the Premises and the common areas and are reserved by Landlord and not demised to Tenant. Tenant’s access to the telephone closets on each
floor and the Building’s main telephone room shall be subject to the Rules (as defined in § 13.1 below) and shall be permitted only with Landlord’s written consent and under the supervision of Landlord’s Building Engineer on each
occasion that such access is sought. 
  
 1.6.4 Changes
and Alterations of the Property. Landlord reserves the right to make repairs, alterations, additions, or improvements, structural or otherwise, in or to the Property or Complex as deemed necessary or desirable in Landlord’s sole and
absolute discretion, so long as such repairs or alterations do not materially and unreasonably interfere with Tenant’s access to or beneficial use of the Premises for their intended purposes. Landlord reserves the right hereunder to 

 

 5 

 do the following: (i) install, use, maintain, repair, and replace pipes, ducts, conduits, wires, and
appurtenant meters and equipment for service to the various parts of the Property above the ceiling surfaces, below the floor surfaces, within the walls, and in the central core areas; (ii) to relocate any pipes, ducts, conduits, wires, and
appurtenant meters and equipment which are located in the Premises or located elsewhere outside the Premises; (iii) expand the Building or the Complex; (iv) make changes to the Property or the Complex, including changes, expansions, and reductions
in the location, size, shape, and number of driveways, entrances, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways, parking spaces, and parking areas; (v) close any of the common areas, so long as
reasonable access to the Premises remains available; (vi) use the common areas while engaged in making additional improvements, repairs, or alterations to the Property, Complex, or any portion thereof; and (vii) do and perform such other acts and
make such other changes in, to, or with respect to the Property, Complex, common areas, and Building as Landlord may deem appropriate. The exercise of any of the foregoing rights shall not subject Landlord to claims for constructive eviction,
abatement of Rent, damages, or other claims of any kind, except as otherwise expressly provided in this Lease. If Landlord enters the Premises to exercise any of the foregoing tights, Landlord shall provide reasonable advance written or oral notice
to Tenant’s on-site manager. 
  
 1.6.5 Systems and
Equipment. As used in this Lease, “Systems and Equipment” means collectively any existing plant, machinery, transformers, duct work, intrabuilding network cables and wires that transmit voice, data, and other telecommunications signals
(“INC”), and other equipment, facilities, and systems designed to supply water, heat, ventilation, air conditioning and humidity or any other services or utilities, or comprising or serving as any component or portion of the electrical,
gas, steam, plumbing, sprinkler, communications, alarm, security, or fire/life/safety systems or equipment, or any other mechanical, electrical, electronic, computer or other systems or equipment for the Property. 
  
 2 USE 
  
 2.1 USE AND ENJOYMENT OF PREMISES. Tenant shall use and
occupy the Premises for executive and general offices and for no other purpose. Notwithstanding anything contained herein to the contrary, Tenant may use portions of the Premises not to exceed one hundred fifty (150) usable square feet for the
preparation and reheating of food and beverages, including the use of refrigerators, ice makers, coffee machines, hot plates, microwave ovens, or similar heating devices (but not for the actual cooking of food) for service only to Tenant’s
employees and business invitees. 
  
 2.1.1
Suitability. Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the Premises, the Property, or the Complex, or with respect to the suitability of same for the conduct of
Tenant’s business, except as expressly provided in this Lease. Tenant’s acceptance of possession of the Premises shall conclusively establish that the foregoing were at such time in satisfactory condition. Landlord makes no representation
to Tenant regarding the installation, ownership, location, or suitability for Tenant’s purposes of the INC in the Building. 
  
 2.1.2 Insurance Rates. Tenant shall not do or suffer anything to be done in or about the Premises, nor shall Tenant bring or allow anything
to be brought into the Premises, which will in any way increase the rate of any fire insurance or other insurance upon the Property or its contents, cause a cancellation of said insurance, or otherwise affect said insurance in any manner.

  
 2.1.3 Use to Comply with Laws. Tenant shall use
the Premises in conformity with all applicable Laws, as specified in Article 6 below. 
  

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 2.1.4 Floor Loading. Tenant shall not place or permit to be placed on any floor a load
exceeding eighty (80) pounds per square foot or such lower floor load as such floor was designed to carry. 
  
 2.2    NUISANCE AND WASTE. Tenant also shall not do or suffer anything to be done in or about the Premises which will in any way obstruct or
interfere with the rights of other tenants or occupants of the Property or injure or annoy said tenants or occupants, nor shall Tenant use or suffer the Premises to be used for any unlawful purposes. In no event shall Tenant cause or permit any
nuisance in or about the Premises, and no loudspeakers or similar devices shall be used without the prior written approval of Landlord, which approval may be withheld in Landlord’s sole and absolute discretion. Tenant shall not commit or suffer
to be committed any waste in or upon the Premises. The provisions of this section are for the benefit of Landlord only and shall not be construed to be for the benefit of any tenant or occupant of the Building. If any governmental license or permit,
other than a Certificate of Occupancy, shall be required for the proper and lawful conduct of Tenant’s business in the Premises, or any part thereof, and if failure to secure such license or permit would in any way affect Landlord, Tenant, at
its sole expense, shall procure and thereafter maintain such license or permit and submit the same for inspection by Landlord. Tenant shall at all times comply with the terms and conditions of each such license or permit. 
  
 2.3    COMPLIANCE WITH
CERTIFICATE OF OCCUPANCY. Tenant shall not at any time use or occupy the Premises, or suffer or permit anyone to use or occupy, the Premises, or do or permit anything to be done in the Premises, in
violation of the Certificate of Occupancy for the Premises or for the Building. 
  
 3 PREPARATION OF THE PREMISES 
  
 3.1    CONDITION OF PREMISES. Except as otherwise expressly provided in § 3.2 below, Tenant shall accept the Premises, any existing Improvements in the Premises
(as defined in § 10.1 below), and the Systems and Equipment serving the same in an “as is” condition on the date the Term commences, and Landlord shall have no obligation to improve, alter, remodel, or otherwise modify the Premises
prior to Tenant’s occupancy. 
  
 3.2    LANDLORD’S PREPARATION. Landlord shall use reasonable diligence in completing and preparing the Premises for Tenant’s occupancy in the
manner and subject to the terms, conditions, and covenants set forth herein on or before August 1, 2003 (the “Target Date”). The facilities, materials, and work to be furnished, installed, and performed in the Premises by Landlord
hereunder are referred to as the “Work.” Any other installations, materials, and work which may be undertaken by or for the account of Tenant to prepare, equip, decorate, and furnish the Premises for Tenant’s occupancy are referred to
as the “Tenant’s Work.” The parties agree that the following items (and only the following items) shall comprise Landlord’s Work for the purposes of this Article 3: 
  

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 (i) Landlord, at Landlord’s sole cost and expense, shall provide turnkey interior
improvements with the new building standard finishes per a mutually agreed upon space plane; 
  
 (ii) Landlord shall provide new carpet and paint; 
  
 (iii) During the term and any option periods Tenant shall have the free use of a portion of Landlord’s furniture and cubicles currently in Suites 503 or 505. Tenant shall have its choice of the furniture
and cubicles and an Inventory List shall be attached as Exhibit F to this Lese. Tenant shall be responsible for moving said furniture and partitions into the Premises. Landlord shall own the furniture and cubicles at the end of the Lease;

  
 (iv) Tenant shall be responsible for installation of
its network and phone systems. 
  
 3.2.2 Readiness for
Occupancy. The Premises shall be deemed ready for occupancy on the earliest date on which all of the following conditions (the “Occupancy Conditions”) have first been met: 
  

	 	(a)	Substantial Completion of Work. The Work has been substantially completed; and it shall be so deemed notwithstanding the fact that minor or insubstantial details of
construction, mechanical adjustment, or decoration remain to be performed, the noncompletion of which does not materially interfere with Tenant’s beneficial use of the Premises for their intended purposes; 

  

	 	(b)	Access and Services. Reasonable means of access and facilities necessary to Tenant’s use and occupancy of the Premises, including corridors, elevators, stairways,
heating, ventilating, air-conditioning, sanitary, water, and electrical facilities (but exclusive of parking facilities) have been installed and are in reasonably good operating order and available to Tenant; and 

  

	 	(c)	Certificate of Occupancy or Completion. A certificate of occupancy, certificate of completion, final inspection card, or similar required governmental approval (temporary or
final) has been issued by the City of South San Francisco permitting use of the Premises for office purposes. 

  
 3.2.3 Tenant Delays. If the occurrence of any of the Occupancy Conditions and Landlord’s preparation of the Premises for occupancy
shall be delayed owing to either (a) any act, omission, or failure of Tenant or any of its employees, agents, or contractors which shall continue after Landlord shall have given Tenant reasonable notice that such act, omission, or failure would
result in delay, and such delay shall have been unavoidable by Landlord in the exercise of reasonable diligence and prudence; or (b) the nature of any items of additional work or change orders that Landlord undertakes to perform for the account of
Tenant (including any delays incurred by Landlord, after making reasonable efforts, in procuring any materials, equipment, or fixtures of a kind or nature not used by Landlord as part of its standard construction) (collectively “Tenant
Delays”), then the Premises shall be deemed ready for occupancy on the date when they would have been ready but for such Tenant Delays. 
  
 3.3    EARLY ENTRY. During any period that Tenant shall be permitted to enter the Premises prior
to the Commencement Date other than to occupy the same (e.g., to perform alterations or improvements), Tenant shall comply with all terms and provisions of this Lease, except those provisions requiring the payment of Rent. If Tenant shall be
permitted to enter the Premises prior to the Commencement Date for the purpose of occupying the same, Rent shall commence on such date at the rate specified in the Table for the first period during which Rent is payable after the Commencement Date;
and if Tenant shall commence occupying only a portion of the Premises prior to the Commencement Date, Rent shall be prorated based on the number of rentable square feet occupied by Tenant. Landlord shall permit early entry, provided the Premises are
legally available and Landlord has completed any Work required under 
  

 8 

 this Lease. In no event shall Tenant’s early entry extend or shorten the Term of the Lease set forth in § 1.2
above. 
  
 3.4    NOTICE OF
DEFECTS. It shall be conclusively presumed upon Tenant’s taking actual possession of the Premises that the same were in satisfactory condition (except for latent defects) as of the date of such taking of
possession, unless within thirty (30) days after the Commencement Date Tenant shall give Landlord notice in writing specifying the respects in which the Premises were not in satisfactory condition. 
  
 4 ADJUSTMENTS OF RENT 
  
 4.1    TAXES, UTILITIES,
AND OPERATING EXPENSES. Notwithstanding anything to the contrary in this Lease, the total escalation pass through to Tenant shall not exceed 1) during 2005 six percent (6.0%) per annum
of the total of all operating expenses, taxes and utilities and 2) during 2006 twelve percent (12.0%) per annum (prorated monthly to 1%) of the total of all operating expenses, taxes and utilities. In addition to the Base Rent and all other payments
due under this Lease, Tenant shall pay to Landlord, in the manner set forth in this Article 4, as Additional Rent, the following amounts: 
  

	 	(a)	Increased Operating Expenses. An amount equal to Tenant’s Pro Rata Share of that portion of Operating Expenses paid by Landlord during each Adjustment Period which
exceeds the amount of Base Operating Expenses (as all of such terms are defined in § 4.2 below). 

  

	 	(b)	Increased Utilities. An amount equal to Tenant’s Pro Rata Share of that portion of Utilities paid by Landlord during each Adjustment Period which exceeds the amount of
Base Utilities (as all of such terms are defined in § 4.2 below). 

  

	 	(c)	Increased Taxes. An amount equal to Tenant’s Pro Rata Share of that portion of Real Estate Taxes paid by Landlord during each Adjustment Period which exceeds the amount
of Base Real Estate Taxes (as all of such terms are defined in § 4.2 below). 

  
 Tenant’s Pro Rata Share of (i) such increase in Operating Expenses over the Base Operating Expenses, (ii) such increase in Utilities over Base Utilities, and (iii) such increase in Real Estate Taxes over the Base
Real Estate Taxes is sometimes referred to collectively herein as the “Rental Adjustment.” 
  
 4.2    DEFINITIONS. For the purposes of this Lease, the following definitions shall apply: 
  

	 	(a)	Base Operating Expenses. “Base Operating Expenses” means the total of Operating Expenses paid by Landlord during calendar year 2004 (the “Base
Expense Year”), as adjusted under § 4.6 below. 

  

	 	(b)	Base Utilities. “Base Utilities” means the total of Utilities paid by Landlord during calendar year 2004 (the “Base Utilities Year”), as
adjusted under § 4.6 below. 

  

	 	(c)	Base Real Estate Taxes. “Base Real Estate Taxes” means the total of Real Estate Taxes paid by Landlord during calendar year 2004 (the “Base Tax
Year”). 

  

	 	(d)	Tenant’s Pro Rata Share. “Tenant’s Pro Rata Share” as to the Building is the percentage labeled as such in the Table in § 1.2 and is
calculated by dividing the agreed rentable area of the Premises (numerator) by the agreed rentable area of the Property (denominator) and expressing the resulting quotient as a percentage. “Tenant’s Pro Rata Share” as to the Complex
is the percentage labeled as such in the Table in § 1.2 as is calculated by dividing the agreed rentable area of the Premises 

  

 9 

 (numerator) by the agreed rentable area of the Complex (denominator) and expressing the resulting
quotient as a percentage. Tenant’s Pro Rata Share shall be increased during the Term in proportion to any increase in the area of the Premises in accordance with the formula stated herein. 
  

	 	(e)	Adjustment Period. “Adjustment Period” as to Operating Expenses, Utilities, and Real Estate Taxes means each calendar year of which any portion occurs during
the Term, excluding the Base Year and beginning with the first calendar year immediately following the Base Year. 

  

	 	(f)	Real Estate Taxes. “Real Estate Taxes” means all of the following charges, whether or not now customary or in the contemplation of the parties hereto, and
whether or not general, special, ordinary, or extraordinary, which Landlord shall pay during any Adjustment Period because of or in connection with the ownership, leasing, or operation of the Property: 

  

	 	(1)	ad valorem real property taxes; 

  

	 	(2)	any form of assessment, license fee, license, tax, business license fee, commercial rental tax, levy, charge, fee, tax, or other imposition imposed by any authority, including any
city, county, state, or federal governmental agency, or any school, agricultural, lighting, transportation, housing, drainage, or other improvement or special assessment district thereof; 

  

	 	(3)	any tax on Landlord’s ‘right’ to rent or ‘right’ to other income from the Building or as against Landlord’s business of leasing the Building;

  

	 	(4)	any assessment, tax, fee, levy, or charge. in substitution, partially or totally, of any assessment tax, fee, levy or charge previously included within the definition of Real Estate
Taxes, it being acknowledged by Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California in the Election of June, 1978, and that assessments, taxes, fees, levies, and charges may be imposed by governmental
agencies for such services as fire protection, street, sidewalk, and road maintenance, refuse removal, and for other governmental services formerly provided without charge to property owners or occupants, and it being the intention of Tenant and
Landlord that all such new and increased assessments, taxes, fees, levies, and charges be included within the definition of Real Estate Taxes for the purposes of this Lease; 

  

	 	(5)	any assessment, tax, fee, levy, or charge allocable to or measured by the area of the Building or Property or the Rent payable hereunder, including any gross income tax or excise
tax levied by any city, county, state, or federal governmental agency or any political subdivision thereof with respect to the receipt of such Rent, or upon or with respect to the possession, leasing, operating, management, maintenance, alteration,
repair, use, or occupancy by Tenant of the Property or any portion thereof; 

  

	 	(6)	any assessment, tax, fee, levy, or charge upon this transaction or any document to which Tenant is a party, creating or transferring an interest or an estate in the Building or
Property; 

  

	 	(7)	any assessment, tax, fee, levy, or charge by any governmental agency related to any transportation plan, fund, or system instituted within the geographic area of which the Building
is a part; or 

  

 10 

	 	(8)	reasonable legal and other professional fees, costs and disbursements incurred in connection with proceedings to contest, determine or reduce Real Estate Taxes.

  
 Exclusions. Notwithstanding the
foregoing, Real Estate Taxes shall not include (A) federal, state, or local income taxes; (B) franchise, gift, transfer, excise, capital stock, estate, succession, or inheritance taxes; or (C) penalties or interest for late payment of Real Estate
Taxes. 
  

	 	(g)	Operating Expenses. “Operating Expenses” means all expenses, costs, and amounts (other than Real Estate Taxes and Utilities) of every kind and nature which
Landlord shall pay during any Adjustment Period of which any portion occurs during the Term, because of or in connection with the ownership, management, repair, maintenance, restoration, and/or operation of the Property, including costs of the
following: 

  

	 	(1)	permits, licenses, and certificates necessary to operate, manage, and lease the Property; 

  

	 	(2)	supplies, tools, equipment, and materials used in the operation, repair, and maintenance of the Property; 

  

	 	(3)	all insurance premiums for any insurance policies deemed necessary or desirable by Landlord (including workers’ compensation, health, accident, group life, public liability,
property damage, earthquake, and fire and extended coverage insurance for the full replacement cost of the Property as required by Landlord or its lenders for the Property); 

  

	 	(4)	the deductible portion of any claim paid under any insurance policy maintained by Landlord in connection with its management and operation of the Property; 

 

	 	(5)	accounting, legal, inspection, consulting, concierge, and other services; 

  

	 	(6)	services of independent contractors; 

  

	 	(7)	compensation (including employment taxes and fringe benefits) of all persons who perform duties in connection with the operation, maintenance, repair, or overhaul of the Building or
Property, and equipment, improvements, and facilities located within the Property, including engineers, janitors, painters, floor waxers, window washers, security, parking personnel, and gardeners; 

  

	 	(8)	operation and maintenance of a room for delivery and distribution of mail to tenants of the Building as required by the U.S. Postal Service (including an amount equal to the fair
market rental value of the mail room premises); 

  

	 	(9)	management of the Building or Property, whether managed by landlord or an independent contractor (including an amount equal to the fair market value of any on-site manager’s
office); 

  

	 	(10)	rental expenses for (or a reasonable depreciation allowance on) personal property used in maintenance, operation, or repair of the Property and installment equipment purchase or
equipment financing agreements for such personal property; 

  

 11 

	 	(11)	costs, expenditures, or charges (whether capitalized or not) required by any governmental or quasi-governmental authority after the Commencement Date; 

  

	 	(12)	payments under any easement, operating agreement, declaration, restrictive covenant, or instrument pertaining to the sharing of costs in any planned development;

  

	 	(13)	amortization of capital expenses (including financing costs) incurred by Landlord after the Commencement Date in order to (A) comply with Laws, (B) reduce Property Operating
Expenses or Utilities, or (C) upgrade the utility, efficiency, or capacity of any utility or telecommunication systems serving tenants of the Property; 

  

	 	(14)	operation, repair, and maintenance of all Systems and Equipment and components thereof (including replacement of components); janitorial service; alarm and security service; window
cleaning; trash removal; elevator maintenance; cleaning of walks, parking facilities, and building walls; removal of ice and snow; replacement of wall and floor coverings, ceiling tiles, and fixtures in lobbies, corridors, restrooms and other common
or public areas or facilities; maintenance and repair of the roof and exterior fabric of the Building, including, replacement of glazing as needed; maintenance and replacement of shrubs, trees, grass, sod, and other landscaped items, irrigation
systems, drainage facilities, fences, curbs, and walkways; repaving and restriping parking facilities; and roof repairs; 

  

	 	(15)	the operation of any on-site maintenance shop(s) and the operation and maintenance of the Athletic Facility, any other fitness center, conference rooms, and all other common areas
and amenities in the Property; 

  

	 	(16)	provision of shuttle busses, shuttle services, and drivers between the Complex and BART and SFO airport, as required by the Bay Area Regional Transportation Act and deed covenants
and restrictions applicable to the Complex; and 

  

	 	(17)	any other costs or expenses incurred by Landlord which are reasonably necessary to operate, repair, manage, and maintain the Building and Property in a first-class manner and
condition and which are not otherwise reimbursed by tenants of the Building. 

  
 Exclusions. Notwithstanding the foregoing, Operating Expenses shall not include (A) depreciation, interest, and amortization on Superior Mortgages (as defined in § 18.1 below), and other debt costs or
ground lease payments, if any; (B) legal fees in connection with leasing, tenant disputes, or enforcement of leases; (C) real estate brokers’ leasing commissions; (D) improvements or alterations to tenant spaces; (E) the cost of providing any
service directly to, and reimbursed or paid directly by, any tenant; (F) any costs expressly excluded from Operating Expenses elsewhere in this Lease; (G) costs of any items to the extent Landlord receives reimbursement from insurance proceeds or
from a third party (such proceeds to be deducted from Operating Expenses in the year in which received); (H) capital expenditures, except those expressly permitted above; provided, all such permitted capital expenditures (together with reasonable
financing charges) shall be amortized for purposes of this Lease over the shorter of (x) their useful lives, (y) the period during which the reasonably estimated savings in Operating Expenses equals the expenditures, or (z) three (3) years.

  

 12 

	 	(h)	Utilities. “Utilities” means all expenses, costs, and amounts of every kind and nature which Landlord shall pay during any Adjustment Period of which any
portion occurs during the Term, because of or in connection with the electricity, power, gas, steam, oil or other fuel, water, sewer, lighting, heating, air conditioning, and ventilating delivered to or consumed or used in or on the Property.

  
 4.3 MANNER OF
PAYMENT. To provide for current payments of the Rental Adjustment, Tenant shall pay as Additional Rent during each Adjustment Period an amount equal to Landlord’s estimate of the Rental Adjustment which will be payable by
Tenant for such Adjustment Period. Such payments shall be made in monthly installments, commencing on the first day of the month following the month in which Landlord notifies Tenant of the amount it is to pay hereunder and continuing until the
first day of the month following the month in which Landlord gives Tenant a new notice of the estimated Rental Adjustment. It is the intention hereunder to estimate from time to time the amount of Tenant’s Rental Adjustment for each Adjustment
Period and then to effect a reconciliation in the following year based on the actual expenses incurred for the preceding Adjustment Period, as provided in 4.4 below. 
  
 4.4 RECONCILIATION. On or before the first day of April of each year after the first Adjustment Period (or as soon
thereafter as is practical), Landlord shall deliver to Tenant a statement (the “Statement”) setting forth the Rental Adjustment for the preceding year. If the actual Rental Adjustment for the preceding Adjustment Period exceeds the total
of the estimated monthly payments made by Tenant for such Adjustment Period, Tenant shall pay Landlord the amount of the deficiency within ten (io) days of the receipt of the Statement. If such total of estimated payments made exceeds the actual
Rental Adjustment for such Adjustment Period, then Tenant shall receive a credit for the difference against payments of Rent next due. If the credit is due from Landlord on the Expiration Date, Landlord shall pay Tenant the amount of the credit,
less any Rent then due. The obligations of Tenant and Landlord to make payments required under this § 4.3 shall survive the expiration or earlier termination of the Term of this Lease. 
  
 4.4.1 Changes in Method. So long as Tenant’s obligations
hereunder are not materially adversely affected thereby, Landlord reserves the right reasonably to change from time to time the manner or timing of the foregoing payments. In lieu of providing one Statement covering Real Estate Taxes, Utilities, and
Operating Expenses, Landlord may provide separate statements, at the same or different times. No delay by Landlord in providing the Statement (or separate statements) shall be deemed a default by Landlord or a waiver of Landlord’s right to
require payment of Tenant’s obligations for actual or estimated Real Estate Taxes, Utilities, or Operating Expenses. In no event shall a decrease in Real Estate Taxes, Utilities, or Operating Expenses below the Base Operating Expenses, Base
Utilities, or Base Real Estate Taxes ever decrease the monthly Base Rent or give rise to a credit in favor of Tenant. 
  
 4.4.2 Proration of Rental Adjustment. If the Term does not commence on January 1 or does not end on December 31, Tenant’s obligations
to pay estimated and actual amounts towards Real Estate Taxes, Utilities, and Operating Expenses for such first or final calendar year shall be prorated to reflect the portion of such year(s) included in the Term. Such proration shall be made by
multiplying the total estimated or actual (as the case may be) Real Estate Taxes, Utilities, and Operating Expenses for such calendar year(s), as well as the Base Real Estate Taxes, Base Utilities, and Base Operating Expenses, by a fraction, the
numerator of which shall be the number of days of the Term during such calendar year, and the denominator of which shall be three hundred sixty-five (365). 
  
 4.5 GROSS-UP. If the Building is less than ninety-five percent (95%) occupied during any Adjustment Period, then Operating Expenses,
Utilities, and Real Estate Taxes for such Adjustment Period shall be “grossed up” to that amount of Operating Expenses, Utilities, and Real Estate Taxes that, using reasonable projections, would normally have been incurred during such
Adjustment Period if the Building had been ninety-five percent (95%) occupied during the Adjustment Period, as determined in accordance with 
  

 13 

 sound accounting and management practices, consistently applied. Only those component elements or items of expense of
Operating Expenses, Utilities, and Real Estate Taxes that are affected by variations in occupancy levels shall be grossed up. 
  
 4.6 ADJUSTMENT OF BASE OPERATING EXPENSES. Notwithstanding anything to the contrary
contained in. the Lease, the parties agree that Base Operating Expenses and Operating Expenses for any subsequent Adjustment Period (herein called “Subsequent Operating Expenses”) shall be subject to further adjustment by Landlord as
follows: 
  

	 	(a)	Exclusion of Capital Expenditures. Landlord may exclude from Base Operating Expenses capital expenditures otherwise permitted, provided Landlord shall also exclude any
amortization of such expenditures from Subsequent Operating Expenses. 

  

	 	(b)	Elimination of Recurring Expenses. If Landlord eliminates from any Subsequent Operating Expenses a category of recurring expenses previously included in Base Operating
Expenses, Landlord may subtract such category from Base Operating Expenses commencing with such subsequent Adjustment Period. 

  

	 	(c)	New Recurring Expenses. If Landlord includes a new category of recurring Subsequent Operating Expenses not previously included in Base Operating Expenses, Landlord shall also
include an amount (the “Assumed Base Amount”) for such category in Base Operating Expenses commencing in such subsequent Adjustment Period. 

  

	 	(d)	Assumed Base Amount. The “Assumed Base Amount” under § 4.6(c) above shall be the annualized amount of expenses for such new category in the first Adjustment
Period it is included, reduced by an amount determined in Landlord’s sole good faith discretion (but in no event by an amount less than five percent (5%)) for each full or partial Adjustment Period that has elapsed during the Term of the Lease
before such Adjustment Period. 

  
 4.7 ADJUSTMENT
OF REAL ESTATE TAXES. If Base Real Estate Taxes are reduced as the result of protest, by means of agreement, as the result of legal proceedings, or otherwise, landlord shall adjust
Tenant’s obligations for Real Estate Taxes in all years affected by any refund of taxes following the Base Tax Year; and Tenant shall pay Landlord within thirty (3o)days after notice any additional amount required by such adjustment for any
Adjustment Periods that have theretofore occurred. Tenant shall be entitled to receive a share of any refund or abatement of Real Estate Taxes received by Landlord to the extent of and in proportion to Tenant’s actual contribution to the amount
of Real Estate Taxes paid by Landlord during the period to which such refund or abatement relates, but in no event shall Tenant be entitled to any refund with respect to Real Estate Taxes paid by Landlord during Tenant’s Base Tax Year. If Real
Estate Taxes for any Adjustment Period during the Term or any extension thereof shall be increased after payment thereof by Landlord for any reason, including error or reassessment by applicable governmental authorities, Tenant shall pay Landlord
upon demand Tenant’s Pro Rata Share of such increased Real Estate Taxes. Tenant shall pay increased Real Estate Taxes whether Real Estate Taxes are increased as a result of increases in the assessment or valuation of the Property (whether based
on a sale, change in ownership, refinancing of the Property, or otherwise), increases in the tax rates, reduction or elimination of any rollbacks or other deductions available under current law, scheduled reductions of any tax abatement, as a result
of the elimination, invalidity, or withdrawal of any tax abatement, or for any other cause whatsoever. Notwithstanding the foregoing, if any Real Estate Taxes shall be paid based on assessments or bills by a governmental authority using a fiscal
year other than a calendar year, Landlord may elect to average the assessments or bills for the subject calendar year, based on the number of months of such calendar year included in each such assessment or bill. 
  

 14 

 4.8 ALLOCATION WITHIN COMPLEX. So long as the Property shall be part
of the Complex collectively owned or managed by Landlord or its affiliates or collectively managed by Landlord’s managing agent, Landlord may allocate Real Estate Taxes, Utilities, and Operating Expenses within the Complex and between the
buildings and structures comprising the Complex and the parcels on which they are located, in accordance with sound accounting and management principles. In the alternative, Landlord shall have the right to determine, in accordance with sound
accounting and management principles, Tenant’s Pro Rata Share of Real Estate Taxes, Utilities, and Operating Expenses based upon the totals of each of the same for all such buildings and structures, the land constituting parcels on which the
same are located, and all related facilities, including common areas and easements, corridors, lobbies, sidewalks, elevators, loading areas, parking facilities, driveways, and other appurtenances and public areas, in which event Tenant’s Pro
Rata Share shall be based on the ratio of the rentable area of the Premises to the rentable area of all buildings in the Complex. 
  
 4.9 LANDLORD’S RECORDS. Landlord shall maintain records with respect to Real Estate Taxes, Utilities, and
Operating Expenses and determine the same in accordance with sound accounting and management practices, consistently applied. Although this Lease contemplates the computation of Real Estate Taxes, Utilities, and Operating Expenses on a cash basis,
Landlord shall make reasonable and appropriate accrual adjustments to ensure that each Adjustment Period includes substantially the same recurring items. Landlord reserves the right to change to a full accrual system of accounting so long as the
same is consistently applied and Tenant’s obligations are not materially adversely affected. Tenant or its representative shall have the right to examine such records, upon reasonable prior written notice specifying such records Tenant desires
to examine, during normal business hours at the place or places where such records are normally kept, by sending such notice no later than forty-five (45) days following the furnishing of the Statement. 
  
 4.10 OTHER TAXES PAYABLE BY
TENANT. In addition to the Base Rent and any other charges to be paid by Tenant hereunder, Tenant shall, as an element of Rent, reimburse Landlord upon demand for any and all taxes payable by Landlord (other than net income taxes)
which are not otherwise reimbursable under this Lease, whether or not now customary or within the contemplation of the parties, where such taxes are upon, measured by, or reasonably attributable to (A) the cost or value of Tenant’s equipment,
furniture, fixtures, and other personal property located at the Premises, or the cost or value of any improvements made in or to the Premises by or for Tenant, regardless of whether title to such improvements is held by Tenant or Landlord; (B) the
gross or net Rent payable under this Lease, including any rental or gross receipts tax levied by any taxing authority with respect to the receipt of the Rent hereunder, (C) the possession, leasing, operation, management, maintenance, alteration,
repair, use, or occupancy by Tenant of the Premises or any portion thereof; or (D) this transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises. Tenant shall pay any rent tax, sales
tax, service tax, transfer tax, value-added tax, or any other applicable tax on the Rent or services herein or otherwise respecting this Lease. 
  
 4.11 RENT CONTROL. If the amount of Rent or any other payment due under this Lease violates the terms of any governmental
restrictions on such Rent or payment, then the Rent or payment due during the period of such restrictions shall be the maximum amount allowable under those restrictions. Upon termination of the restrictions, Landlord shall, to the extent it is
legally permitted, recover from Tenant the difference between the amounts received during the period of the restrictions and the amounts Landlord would have received had there been no restrictions. 
  
 5    SECURITY DEPOSIT 
  
 5.1 DEPOSIT FOR SECURITY. Tenant shall
deposit with Landlord the amount of Five Thousand Six Hundred Sixty-One Dollars and Sixty Cents ($5,661.00) (the “Security Deposit”) upon Tenant’s execution and submission of this Lease. The Security Deposit shall serve as security
for the prompt, full, and faithful 
  

 15 

 performance by Tenant of the terms and provisions of this Lease. Landlord shall not be required to keep the Security
Deposit separate from Landlord’s general funds or pay interest on the Security Deposit. 
  
 5.1.1 Application of Deposit. In the event that Tenant is in Default hereunder and fails to cure within any applicable time permitted under this Lease, or in the event that Tenant owes any amounts to
Landlord upon the expiration of this Lease, Landlord may use or apply the whole or any part of the Security Deposit for the payment of Tenant’s obligations hereunder. The use or application of the Security Deposit or any portion thereof shall
not prevent Landlord from exercising any other right or remedy provided hereunder or under any Law and shall not be construed as liquidated damages. 
  
 5.1.2 Restoration of Full Deposit. In the event the Security Deposit is reduced by such use or application, Tenant shall deposit with
Landlord, within ten (10) days after written notice, an amount sufficient to restore the full amount of the Security Deposit. If the Premises shall be expanded at any time, or if the Term shall be extended at any increased rate of Rent, the Security
Deposit shall thereupon be proportionately increased. 
  
 5.1.3 Disposition of Security Deposit. After the Expiration Date or any earlier termination of the Lease, any remaining portion of the Security Deposit shall be returned to Tenant in accordance with the provisions of §
1950.7 of the California Civil Code. 
  
 6    COMPLIANCE WITH LAWS 
  
 6.1
TENANT’S COMPLIANCE WITH LAWS. Tenant shall use the Premises in compliance with all applicable federal, state, county, and local governmental and municipal laws,
statutes, ordinances, rules, regulations, codes, decrees, orders, and other such requirements, and decisions by courts in cases where such decisions are considered binding precedents in the State of California (the “State”), and decisions
of federal courts applying the laws of the State (collectively “Laws”). Tenant shall, at its sole cost and expense, promptly comply with each and all of such Laws, and also with the requirements of any board of fire underwriters or other
similar body now or hereafter constituted to deal with the condition, use, or occupancy of the Premises, except in the case of required structural changes not triggered by Tenant’s change in use of the Premises or Tenant’s alterations,
additions, or improvements therein. Tenant shall comply with all applicable Laws regarding the physical condition of the Premises, but only to the extent that the applicable Laws pertain to the particular manner in which Tenant uses the Premises or
the particular use to which Tenant puts the Premises, if different from that permitted under Article 2 of this Lease. Tenant shall also comply with all applicable Laws which do not relate to the physical condition of the Premises and with which only
the occupant can comply, such as laws governing maximum occupancy, workplace smoking, VDT regulations, and illegal business operations, such as gambling. The judgement of any court of competent jurisdiction or the admission of Tenant in any judicial
action, regardless of whether Landlord is a party thereto, that Tenant has violated any of such Laws shall be conclusive of that fact as between Landlord and Tenant. 
  
 6.1.1 Code Costs. Notwithstanding anything to the contrary in this Article 6, if the requirement of any public
authority obligates either Landlord or Tenant to expend money in order to bring the Premises and/or any area of the Property into compliance with Laws as a result of (a) Tenant’s particular use or alteration of the Premises; (b) Tenant’s
change in the use of the Premises; (c) the manner of conduct of Tenant’s business or operation of its installations, equipment, or other property therein; (d) any cause or condition created by or at the instance of Tenant, other than by
Landlord’s performance of any work for or on behalf of Tenant; or (e) breach of any of Tenant’s obligations hereunder, then Tenant shall bear all costs (“Code Costs”) of bringing the Premises and/or Property into compliance with
Laws, whether such Code Costs are related to structural or nonstructural elements of the Premises or Property. 
  
 6.2 LANDLORD’S COMPLIANCE WITH LAWS. Landlord represents that on the Commencement Date Landlord has no actual knowledge of any
violation of any applicable Laws respecting the Premises. 
  

 16 

 During the Term Landlord shall comply with all applicable Laws regarding the Premises and Property, except to the extent
Tenant must comply under § 6.i above. 
  
 7    HAZARDOUS MATERIALS 
  
 7.1
REGULATION OF HAZARDOUS MATERIALS. Tenant shall not transport, use, store, maintain, generate, manufacture, handle, dispose, release, or discharge any “Hazardous Material” (as
defined below) upon or about the Property, nor permit Tenant’s employees, agents, contractors, and other occupants of the Premises to engage in such activities upon or about the Property. However, the foregoing provisions shall not prohibit the
transportation to and from, and use, storage, maintenance, and handling within, the Premises of substances customarily used in offices, provided all of the following conditions are met: 
  

	 	(a)	such substances shall be used and maintained only in such quantities as are reasonably necessary for such permitted use of the Premises, strictly in accordance with applicable Laws
and the manufacturers’ instructions therefor; 

  

	 	(b)	such substances shall not be disposed of, released, or discharged on the Property and shall be transported to and from the Premises in compliance with all applicable Laws, and as
Landlord shall reasonably require; 

  

	 	(c)	if any applicable Laws or Landlord’s trash removal contractor requires that any such substances be disposed of separately from ordinary trash, Tenant shall make arrangements at
Tenant’s expense for such disposal directly with a qualified and licensed disposal company at a lawful disposal site (subject to scheduling and approval by Landlord), and shall ensure that disposal occurs frequently enough to prevent
unnecessary storage of such substances in the Premises; and 

  

	 	(d)	any remaining such substances shall be completely, properly, and lawfully removed from the Property upon expiration or earlier termination of this Lease. 

 
 7.1.2 DEFINITION OF
HAZARDOUS MATERIAL. The term “Hazardous Material” for purposes hereof shall mean any chemical, substance, material, or waste or component thereof which is now or hereafter listed, defined, or regulated as
a hazardous or toxic chemical, substance, material, or waste or component thereof by any federal, state, or local governing or regulatory body having jurisdiction, or which would trigger any employee or community “right-to-know”
requirements adopted by any such body, or for which any such body has adopted any requirements for the preparation or distribution of an MSDS. 
  
 7.2 NOTIFICATION OF LANDLORD. Tenant shall promptly notify Landlord of (A) any enforcement, cleanup, or other
regulatory action taken or threatened by any governmental or regulatory authority with respect to the presence of any Hazardous Material on the Premises or the migration thereof from or to other property; (B) any demands or claims made or threatened
by any party against Tenant or the Premises relating to any loss or injury resulting from any Hazardous Material on or from the Premises; and (C) any matters where Tenant is required by law to give a notice to any governmental or regulatory
authority respecting any Hazardous Material on the Premises. Landlord shall have the right (but not the obligation) to join and participate, as a party, in any legal proceedings or actions affecting the Premises initiated in connection with any
environmental, health, or safety law. 
  
 7.3 LIST
OF HAZARDOUS MATERIALS. At such times as Landlord may reasonably request, Tenant shall provide Landlord with a written list identifying any Hazardous Material then used, stored, or maintained upon the
Premises, the use and approximate quantity of each such material, a copy of any material safety data sheet (“MSDS”) issued by the manufacturer thereof, written information concerning the removal, transportation, and disposal of the same,
and such other information as Landlord may reasonably require or as may be required by law. 
  

 17 

 7.4 CLEANUP. If any Hazardous Material is released, discharged or disposed of by Tenant or any
other occupant of the Premises, or their employees, agents, or contractors, on or about the Property in violation of the foregoing provisions, Tenant shall immediately, properly, and in compliance with applicable Laws clean up and remove the
Hazardous Material from the Property and any other affected property and clean or replace any affected personal property (whether or not owned by Landlord), at Tenant’s expense. Such clean up and removal work shall be subject to Landlord’s
prior written approval (except in emergencies), and shall include any testing, investigation, and the preparation and implementation of any remedial action plan required by any governmental body having jurisdiction or reasonably required by
Landlord. If Tenant shall fail to comply with the provisions of this § 7.2 within five (5) days after written notice by Landlord, or such shorter time as may be required by Laws or in order to minimize any hazard to persons or property,
Landlord may (but shall not be obligated to) arrange for such compliance directly or as Tenant’s agent through contractors or other parties selected by Landlord, at Tenant’s expense (without limiting Landlord’s other remedies under
this Lease or applicable Laws). 
  
 7.5 CASUALTY
DAMAGE. If any Hazardous Material is released, discharged, or disposed of on or about the Property and such release, discharge, or disposal is not caused by Tenant or other occupants of the Premises, or their employees, agents, or
contractors, such release, discharge, or disposal shall be deemed casualty damage under Article 15 to the extent that the Premises or common areas serving the Premises are affected thereby; in such case, Landlord and Tenant shall have the
obligations and rights respecting such casualty damage provided under Article i5 of this Lease. 
  
 7.6 REFRIGERANT. Tenant shall not install any refrigerant-containing systems or equipment, including refrigerators, freezers, supplemental HVAC systems or self-contained air conditioners, without
Landlord’s prior approval, which Landlord may withhold in its sole discretion. Unless Tenant shall have obtained Landlord’s prior written approval to install existing equipment after an inspection, at Tenant’s sole cost and expense,
by Landlord’s engineer for defects and proper proposed installation in the Premises, all refrigerant-containing equipment and/or systems which Tenant installs in the Premises shall be new. Whether Tenant’s refrigerant-containing equipment
or systems are defective and are properly installed shall be determined at the sole discretion of Landlord’s engineer. If Tenant wishes to install any refrigerant-containing equipment or systems, Tenant shall obtain and provide Landlord with
copies of all required permits associated with such equipment or systems. 
  
 7.6.1 Removal of Refrigerant. Notwithstanding anything to the contrary in this Lease, Tenant shall remove all refrigerant and refrigerant-containing equipment and/or systems installed in the Premises by
or on behalf of Tenant prior to the Expiration Date of this Lease. Prior to the removal of any such refrigerant or refrigerant-containing equipment and/or systems, Tenant shall submit to Landlord for Landlord’s approval, the names of
Tenant’s contractors and all plans and specifications for such removal. Tenant and Tenant’s contractors shall comply with all legal requirements, industry practices and rules established by Landlord in performing such removal work. Tenant
shall repair any damage to the Property or the Systems and Equipment associated with such removal, and Tenant shall be responsible for the costs associated with restoring the Property to the condition which existed immediately prior to any
modification undertaken by Landlord in order to accommodate Tenant’s refrigerant-containing equipment or systems. 
  
 8    SERVICES AND UTILITIES 
  
 8.1 LANDLORD’S SERVICES. Landlord agrees to provide, on the terms and conditions specified herein, the following
services and utilities for Tenant’s use and consumption in the Premises, the cost of which shall be included in Operation Expenses and/or Utilities and reimbursed to Landlord in accordance with § 4.1 above: 
  

	 	(a)	Electricity. Electricity for standard office lighting fixtures and for equipment and accessories customary for offices, up to an aggregate maximum of two hundred
eighty (280) hours per month, provided (i) the connected electrical load of all the same 

  

 18 

	 	    	does not exceed an average of four (4) watts per usable square foot of the Premises (or such lesser amount as may be available, based on the safe and lawful capacity of the existing
electrical circuit(s) and facilities serving the Premises); (ii) the electricity will be at nominal 120 volts, single phase (or 110 volts, depending on available service in the Building); and (iii) the safe and lawful capacity of the existing
electrical circuit(s) serving the Premises is not exceeded. Landlord will permit its electric feeders, risers, and wiring servicing the Premises to be used by Tenant to the extent available and safely capable of being used for such purpose.

  

	 	(b)	Telecommunications Interface. Interface with the telephone network at the demarcation point or minimum point of entry (“MPOE”) supplied by the local regulated
public utility by means of Landlord’s INC consisting of cable pairs with a capacity consistent with the engineering standards to which the Building was designed. 

  

	 	(c)	HVAC. Heat, ventilation, and air-conditioning (“HVAC”) to provide a temperature required, in Landlord’s reasonable opinion and in accordance with applicable
Laws, for the comfortable occupancy of the Premises during business hours (as defined in § 8.1.1 below). Landlord shall not be responsible for inadequate air-conditioning or ventilation to the extent the same occurs because Tenant uses any item
of equipment consuming more than 5oo watts at rated capacity without providing adequate air-conditioning and ventilation therefor. 

  

	 	(d)	Water. Water for drinking, lavatory and toilet purposes at those points of supply provided for nonexclusive general use of other tenants at the Property.

  

	 	(e)	Janitorial Services. Customary office cleaning and trash removal service Monday through Friday or Sunday through Thursday in and about the Premises. 

 

	 	(f)	Elevator Services. Operatorless passenger elevator service and freight elevator service (if the Property has such equipment serving the Premises, and subject to scheduling by
Landlord) in common with Landlord and other tenants and their contractors, agents, and visitors. 

  
 8.1.1 Business Hours. The term business hours in this Lease shall mean the hours from 8:00 a.m. until 6:oo p.m. on Monday through
Friday and from 9:00 a.m. until 1:00 p.m. on Saturday throughout the year, except for New Year’s Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, and any other federally-observed holiday
which may be created during the Term (“Holidays”). 
  
 8.2
ADDITIONAL ELECTRICAL CAPACITY. Any additional risers, feeders, or other equipment or service proper or necessary to supply Tenant’s electrical requirements will be installed by
Landlord, upon written request of Tenant, at the sole cost and expense of Tenant, if, in Landlord’s sole judgement, the same are necessary and will not cause permanent damage or injury to the Property, the Premises, or the Systems and Equipment
or cause or create a dangerous or hazardous condition or entail excessive or unreasonable alterations, repairs, or expense or interfere with or disturb other tenants or occupants. Rigid conduit only will be allowed. 
  
 8.2.1 Approved Electrical Load. Tenant agrees not to connect
any additional electrical equipment of any type to the building electric distribution system, beyond that on Tenant’s approved plans for initial occupancy, other than lamps, typewriters, and other office machines which consume comparable
amounts of electricity or other electrical equipment which in the aggregate consumes the same amount of electricity as those approved for initial occupancy and will not result in any overload of electrical circuits, lines, or wiring, without
Landlord’s prior written consent. In no event shall Tenant use or install any fixtures, equipment, or machines the use of which in conjunction with other fixtures, equipment, and machines in the Premises would result in an overload or the
electrical 
  

 19 

 circuits servicing the Premises. Tenant covenants and agrees that at all times its use of electric
current shall never exceed the capacity of the feeders to the Building or the risers or wiring installation existing at the time in question. 
  
 8.3 ADDITIONAL TELECOMMUNICATIONS CAPACITY. If Tenant desires any telecommunications capacity in excess of that
available as of the Commencement Date in the form of the INC between the MPOE and the telephone closet nearest the Premises and provided pursuant to § 8.1 above, Tenant shall bear the cost of installing additional risers or INC or replacing
existing INC serving the Premises pursuant to Article 9 below. 
  
 8.4
REPLACEMENT BULBS AND TUBES. Tenant shall furnish, install, and replace, as required, all non-Building-standard lighting tubes, lamps, bulbs, and ballasts required in the Premises, at
Tenant’s sole cost and expense. All lighting tubes, lamps, bulbs, and ballasts so installed become Landlord’s property upon the expiration or sooner termination of this Lease. 
  
 8.5 TWENTY-FOUR HOURS ACCESS. Subject to the provisions of § 8.8,
Tenant, its employees, agents, and invitees shall have access to the Premises twenty-four (24) hours a day, seven (7) days a week. Landlord may restrict access outside of business hours by requiring persons to show a badge or identification card
issued by Landlord. Landlord shall not be liable for denying entry to any person unable to show the proper identification. Landlord may without liability temporarily close the Building if required because of a life-threatening or
Building-threatening situation. 
  
 8.6 EXTRA
SERVICES. Landlord shall, subject to all applicable Laws, seek to provide such utilities or services in excess of those Landlord is required to provide under § 8.1 above as Tenant may from time to time request, if the same
are reasonable and feasible for Landlord to provide and do not involve modifications or additions to the Property or the Systems and Equipment and if Landlord shall receive Tenant’s request within a reasonable period prior to the time such
extra utilities or services are required. Landlord may comply with written or oral requests by any officer or employee of Tenant, unless Tenant shall notify Landlord of, or Landlord shall request, the names of authorized individuals (up to three (3)
for each floor on which the Premises are located) and procedures for written requests. Tenant shall, for such extra utilities or services, pay such charges as Landlord shall from time to time establish. 
  
 8.6.1 Extraordinary Service Usage. If Tenant shall utilize
Building services for the Premises at any time other than during business hours, Landlord shall furnish such extraordinary services (excluding air-conditioning, except as provided below) at Landlord’s then-current prevailing rate for such
services. In addition to the foregoing services, if Tenant shall require air-conditioning service for the Premises at any time other than during business hours, Landlord shall, upon reasonable advance notice from Tenant, furnish such after-hours
air-conditioning service at Landlord’s then-current prevailing rate for such services as a separate charge; provided, however, in the event Tenant requests such after-hours air-conditioning service at a time not immediately preceding or
immediately succeeding times when “regular hours” service is being furnished hereunder, then Tenant must request not less than five (5) hours of after-hours air-conditioning service. Notwithstanding anything contained herein to the
contrary, Landlord’s prevailing rate for the extraordinary services described herein shall be subject to increase from time to time as Landlord may reasonably determine. 
  
 8.6.2 Payment for Excess Usage. All charges for extra utilities or services or those requested outside
business hours shall be due at the same time as the installment of Base Rent with which the same are billed, or if billed separately, shall be due within twenty (20) days after such billing. 
  
 8.6.3 Changes in HVAC System. Use of the Premises, or any part
thereof, in a manner exceeding the design conditions (including occupancy and connected electrical load) for the heating or cooling units in the Premises, or rearrangement of partitioning which interferes with normal operation of the HVAC system in
the Premises, may require changes in the HVAC system servicing 
  

 20 

 the Premises. Such changes shall be made by Tenant, at its expense, as Tenant’s Changes pursuant to
Article 9. Tenant shall not change or adjust any closed or sealed thermostat or other element of the HVAC system without Landlord’s express prior written consent. 
  
 8.6.4 Separate Metering. Landlord may install and operate meters or any other reasonable system for monitoring
or estimating any services or utilities used by Tenant in excess of those required to be provided by Landlord under this Article 8 (including a system for Landlord’s engineer reasonably to estimate any such excess usage). If such system
indicates such excess services or utilities, Tenant shall pay Landlord’s reasonable charges for installing and operating such system and any supplementary air-conditioning, ventilation, heat, electrical, or other systems or equipment (or
adjustments or modifications to the existing Systems and Equipment), and Landlord’s reasonable charges for such amount of excess services or utilities used by Tenant. If Tenant’s use of extra utilities or services causes Landlord’s
regulated baseline quantities of water, gas, electricity, or any other utility or service to be exceeded, Tenant shall pay for such excess quantities of such utilities or services at the rate which is imposed upon Landlord for quantities in excess
of the regulated baseline. In addition, Tenant shall pay prior to delinquency any fine or penalty which may be imposed upon or assessed against Landlord or the Building or the Property by virtue of Tenant’s excess usage of any services or
utilities, including water, gas, and electricity. 
  
 8.7
INTERRUPTION OF SERVICES. Landlord does not warrant that any services or utilities provided hereunder for Tenant’s use in the Premises will be free from shortages, failures, variations, or
interruptions caused by repairs, maintenance, replacements, improvements, alterations, changes of service, strikes, lockouts, labor controversies, accidents, inability to obtain services, fuel, steam, water or supplies, governmental requirements or
requests, or other causes beyond Landlord’s reasonable control, including interference with light or other incorporeal hereditaments and any interruption in services or any failure to provide services to Landlord by a designated utility company
at the demarcation point at which Landlord accepts responsibility for such service or at any point prior thereto, which interference impedes Landlord in furnishing plumbing, HVAC, electrical, sanitary, life safety, elevator, telecommunications, or
other Building services, utilities, or the Systems and Equipment. None of the same shall be deemed an eviction or disturbance of Tenant’s use and possession of the Premises or any part thereof, shall render Landlord liable to Tenant for
abatement of Rent, or shall relieve Tenant from performance of Tenant’s obligations under this Lease. Landlord in no event shall be liable for damages by reason of loss of profits, business interruption, or other compensatory or consequential
damages. 
  
 8.8 SAFETY AND
SECURITY DEVICES, SERVICES, AND PROGRAMS. The parties acknowledge that safety and security devices, services, and programs provided by Landlord, if any, while intended to
deter crime and ensure safety, may not in given instances prevent theft or other criminal acts or ensure safety of persons or property, and such devices, services and programs shall not under any circumstances be deemed to be a guaranty,
representation, or warranty by Landlord to Tenant or any third parties as to the safety or protection of person or property. The risk that any safety or security device, service, or program may not be effective, or may malfunction, or be
circumvented by a criminal, is assumed by Tenant with respect to Tenant’s property and interests; and Tenant shall obtain insurance coverage to the extent Tenant desires protection against such criminal acts and other losses, as further
described in Article 14. Tenant agrees to cooperate in any reasonable safety or security program developed by Landlord or required by Law. 
  
 9    TENANT’S CHANGES 
  
 9.1 TENANT’S REQUESTED CHANGES. Tenant may, subject to § 9.2 below, from time to time during
the Term of this Lease, at its expense, make such alterations, additions, installations, substitutions, improvements, and decorations (collectively “Tenant’s Changes”) in and to the Premises as Tenant may reasonably consider necessary
for the conduct of its business in the Premises (except for changes which would require modification of the Property outside the Premises), on the following conditions: 
  

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	 	(a)	the outside appearance or the strength of the Building or of any of its structural parts shall not be affected, and Tenant shall cause no penetration of the roof or the exterior
fabric of the Building; 

  

	 	(b)	no part of the Building outside of the Premises shall be physically affected; 

  

	 	(c)	the proper functioning of any of the Systems and Equipment shall not be adversely affected, and the usage of such systems by Tenant shall not be increased; 

 

	 	(d)	no such change shall require the addition of new INC riser cable or expand the number of telephone pairs dedicated to the Premises by the Buildings’ telecommunications
engineering design; 

  

	 	(e)	in performing the work involved in making such changes, Tenant shall be bound by and observe all of the conditions and covenants contained in the following sections of this Article
9; and 

  

	 	(f)	with respect to Tenant’s Changes, Tenant shall make all arrangements for, and pay all expenses incurred in connection with, use of the freight elevators servicing the Premises.

  
 9.2 PLANS AND
APPROVAL. Before proceeding with any Tenant’s Changes, Tenant shall advise Landlord thereof and arrange a meeting with the Building Manager, the Building Architect, and/or the Building Contractor, as required by Landlord in
relation to the scope of the proposed Changes. Except in extraordinary circumstances which would reasonably require an exception, all work to be performed in the Building shall be performed by the Building Contractor on the basis of plans and
drawings prepared by the Building Architect. If Landlord grants permission for Tenant to utilize another contractor and/or architect for its Changes, before proceeding with any Tenant’s Changes, Tenant shall submit to Landlord plans and
specifications and all changes and revisions thereto for the work to be done for Landlord’s reasonable approval; and Tenant shall, upon demand of Landlord, pay to Landlord the reasonable costs incurred and paid to third parties by Landlord for
the review of such plans and specifications and all changes and revisions thereto by its architect, engineer, and other consultants. Landlord may as a condition of its approval require Tenant to make reasonable revisions in and to the plans and
specifications. Landlord may require Tenant to post a bond or other security reasonably satisfactory to Landlord to insure the completion of such change. If Landlord consents to any Tenant’s Changes or supervises the work of constructing any
Tenant’s Changes, such consent or supervision shall not be deemed a warranty as to the adequacy of the design, workmanship, or quality of materials, and Landlord hereby expressly disclaims any responsibility or liability for the same. Landlord
shall under no circumstances have any obligation to repair, maintain, or replace any portion of such work. 
  
 9.2.1 As-Built Plans. Within thirty (30) days after completion of Tenant’s Changes requiring the submission of plans to Landlord,
Tenant shall furnish to Landlord a complete set of “as-built” plans and specifications. 
  
 9.3 PERMITS AND PERFORMANCE. Tenant, at its expense, shall obtain all necessary governmental permits and certificates for the commencement and prosecution of
Tenant’s Changes and for final approval thereof upon completion and shall furnish copies thereof to Landlord. Tenant shall cause Tenant’s Changes to be performed in compliance therewith and with all applicable Laws and requirements of
public authorities and with all applicable requirements of insurance bodies, and in good and workmanlike manner, using new materials and equipment at least equal in quality and class to the original installations in the Property. Tenant’s
Changes shall be performed in such manner as not unreasonably to interfere with, delay, or impose any additional expense upon Landlord in the renovation, maintenance, or operation of the Property or any portion thereof, unless Tenant shall indemnify
Landlord therefor to the latter’s reasonable satisfaction. 
  

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 9.4 CONTRACTORS. All electrical, mechanical, and plumbing work in connection with Tenant’s
Changes shall be performed by Landlord’s contractors at Tenant’s expense. If Tenant shall request any electrical, mechanical, or plumbing work in connection with Tenant’s Changes, Landlord shall request Landlord’s contractors to
furnish Tenant with prices to perform the same prior to prosecuting same. In addition to the foregoing, and notwithstanding anything to the contrary in this Article 9, Landlord may, at Landlord’s option, require that the work of constructing
any Tenant’s Changes be performed by Landlord’s contractor, in which case the cost of such work shall be paid for before commencement of the work. 
  
 9.5 SUPERVISION AND FEE. Landlord may require that all work of constructing Tenant’s Changes be performed under
Landlord’s supervision. If Landlord does not elect to require that Tenant use Landlord’s contractor, and if Tenant chooses to use its own contractor for the work of constructing Tenant’s Changes, Tenant shall pay to Landlord upon
completion of any such work by Tenant’s contractor an administrative fee of fifteen percent (15%) of the cost of the work, to cover Landlord’s overhead in reviewing Tenant’s plans and specifications and performing any supervision of
the work of Tenant’s Changes. If Tenant chooses to use Landlord’s contractor for such work, Tenant shall pay to Landlord upon completion an administrative fee equal to five percent (5%) of the cost of the work. 
  
 9.6 RESTORATION OF FIXTURES. If any of
Tenant’s Changes shall involve the removal of any fixtures, equipment, or other property in the Premises which are not Tenant’s Property (as defined in Article 10), such fixtures, equipment, or other property shall be promptly replaced, at
Tenant’s expense, with new fixtures, equipment, or other property (as the case may be) of like utility and at least equal value, unless Landlord shall otherwise expressly consent in writing; and Tenant shall, upon Landlord’s request, store
and preserve, at Tenant’s sole cost and expense, any such fixtures, equipment or property so removed and shall return same to Landlord upon the expiration or sooner termination of this Lease. 
  
 9.7 MECHANIC’S LIENS. Tenant shall
keep the Property and Premises free from any mechanic’s, materialman’s, or similar liens or other such encumbrances, including the liens of any security interest in, conditional sales of, or chattel mortgages upon, any materials, fixtures,
or articles so installed in and constituting part of the Premises, in connection with any Tenant’s Changes on or respecting the Premises not performed by or at the request of Landlord and shall indemnify, defend, protect, and hold Landlord
harmless from and against any claims, liabilities, judgements, or costs (including attorneys’ fees) arising out of the same or in connection with any such lien, security interest, conditional sale or chattel mortgage or any action or proceeding
brought thereon. Tenant shall give Landlord written notice at least twenty (20) days prior to the commencement of work on any Tenant’s Change in the Premises (or such additional time as may be necessary under applicable Laws), in order to
afford Landlord the opportunity of posting and recording appropriate notices of nonresponsibility. Tenant shall remove any such lien or encumbrance by bond or otherwise within thirty (30) days after written notice by Landlord; and if Tenant shall
fail to do so, Landlord may pay the amount necessary to remove such lien or encumbrance, without being responsible for investigating the validity thereof. The amount so paid shall be deemed Additional Rent under this Lease payable upon demand,
without limitation as to other remedies available to Landlord under this Lease. Nothing contained in this Lease shall authorize Tenant to do any act which shall subject Landlord’s title to the Property or Premises to any liens or encumbrances,
whether claimed by operation of law or express or implied contract. Any claim to a lien or encumbrance upon the Property or Premises arising in connection with any Work on or respecting the Premises not performed by or at the request of Landlord
shall be null and void, or, at Landlord’s option, shall attach only against Tenant’s interest in the Premises and shall in all respects be subordinate to Landlord’s title to the Property and Premises. 
  
 9.8 NOTICES OF VIOLATION. Tenant, at its
expense, and with diligence and dispatch, shall procure the cancellation or discharge of all notices of violation arising from or otherwise connected with Tenant’s Changes which shall be issued by any governmental, public, or quasi-public
authority having or asserting jurisdiction. However, nothing herein contained shall prevent Tenant from contesting, in good faith and at its own expense, any such notice of violation, provided that Landlord’s rights hereunder are in no way
compromised or diminished thereby. 
  

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 9.9 INDUSTRIAL RELATIONS. Tenant agrees that the exercise of its rights pursuant to
the provisions of this Article 9 or any other provision of this Lease shall not be done in a manner which would create any work stoppage, picketing, labor disruption, or dispute or violate Landlord’s union contracts affecting the Property
and/or Complex or interfere with the business of Landlord or any Tenant or occupant of the Building. Tenant shall, immediately upon notice from Landlord, cease any activity, whether or not permitted by this Lease, giving rise to such condition. If
Tenant fails to do so, Landlord, in addition to any rights available to it under this Lease and pursuant to Law, shall have the right to an ex parte injunction without notice. 
  
 10 TENANT’S PROPERTY 
  
 10.1 FIXTURES AND IMPROVEMENTS. All fixtures, equipment, improvements, alterations, and appurtenances attached to or
built into the Premises at the commencement of or during the Term of this Lease, including cabinets, sinks, faucets, appliances, hot water heaters, etc. (collectively “Improvements”), whether or not by or at the expense of Tenant, shall be
and remain a part of the Premises, shall be deemed the property of Landlord, and shall not be removed by Tenant, except as expressly provided in Article 11 below. 
  
 10.2 TENANT’S PROPERTY AND TRADE
FIXTURES. All movable partitions, trade fixtures, office machinery and equipment, communications equipment, and computer equipment (whether or not attached to or built into the Premises) which are installed in the Premises by or
for the account of Tenant, without expense to Landlord and which can be removed without structural damage to the Property, and all furniture, furnishings, and other articles of movable personal property owned by Tenant and located in the Premises
(collectively “Tenant’s Property”) shall be and shall remain the property of Tenant and may be removed by it at any time during the Term of this Lease; provided that if any of Tenant’s Property is removed, Tenant or any party or
person entitled to remove same shall repair or pay the cost of repairing any damage to the Premises or to the Property resulting from such removal. Any equipment or other property for which Landlord shall have granted any allowance or credit to
Tenant or which has replaced such items originally provided by Landlord at Landlord’s expense shall not be deemed to have been installed by or for the account of Tenant, without expense to Landlord, and shall not be considered Tenant’s
Property. 
  
 11 CONDITION UPON SURRENDER 
  
 11.1 CONDITION AND RESTORATION. At or
before the Expiration Date or the date of any earlier termination of this Lease, or as promptly as practicable using Tenant’s best efforts after such an earlier termination date, Tenant, at its expense, shall do all of the following:

  

	 	(a)	surrender possession of the Premises in the condition required under § 12.1 below, ordinary wear and tear excepted; 

  

	 	(b)	surrender all keys, any key cards, and any parking stickers or cards to Landlord and give Landlord in writing the combinations of any locks or vaults then remaining in the Premises;

  

	 	(c)	remove from the Premises all of Tenant’s Property, except such items thereof as Tenant shall have expressly agreed in writing with Landlord were to remain and to become the
property of Landlord; and 

  

	 	(d)	fully repair any damage to the Premises or the Property resulting from such removal. 

  
 Tenant’s obligations herein shall survive the expiration or earlier termination of the Lease, unless expressly provided to the contrary
herein. All Improvements and other items in or upon the Premises 
  

 24 

 (except Tenant’s Property), whether installed by Tenant or Landlord, shall be Landlord’s property and shall
remain upon the Premises, all without compensation, setoff, allowance, or credit to Tenant; provided, however, that if prior to such expiration or earlier termination Landlord so directs by notice, Tenant shall promptly remove such of the
Improvements in the Premises as are designated in such notice and shall restore the Premises to their condition prior to the installation of such Improvements. Notwithstanding the foregoing, Landlord shall not require removal of customary office
improvements installed pursuant to the Work Letter Agreement, if any (except as expressly provided to the contrary therein), or installed by Tenant with Landlord’s written approval (except as expressly required by Landlord in connection with
granting such approval). 
  
 11.2 TENANT’S
FAILURE TO REMOVE OR RESTORE. If Tenant shall fail to perform any repairs or restoration or fail to remove any items from the Premises as required under this Article 11,
Landlord may do so, and Tenant shall pay Landlord the cost thereof upon demand. All property removed from the Premises by Landlord pursuant to any provisions of this Lease or any Law may be handled or stored by Landlord at Tenant’s expense, and
Landlord shall in no event be responsible for the value, preservation, or safekeeping thereof. All property not removed from the Premises or retaken from storage by Tenant within thirty (30) days after expiration or earlier termination of this Lease
or Tenant’s right to possession shall at Landlord’s option be conclusively deemed to have been conveyed by Tenant to Landlord as if by bill of sale without payment by Landlord. Unless prohibited by applicable Laws, Landlord shall have a
lien against such property for the costs incurred in removing and storing the same. 
  
 12 REPAIRS AND MAINTENANCE 
  
 12.1
TENANT’S CARE OF PREMISES. Except for customary cleaning and trash removal provided by Landlord under § 8.1 above and damage covered under Article 15, Tenant
shall keep the Premises in good and sanitary condition, working order, and repair, including carpet, wall-covering, doors pertinent to and within the Premises, plumbing, all telecommunications cables and wiring within Tenant’s Premises
(“IW”) from the interface of such IW with the INC, and other fixtures, equipment, alterations, and improvements, whether installed by Landlord or Tenant. In addition, Tenant, at its expense, shall promptly make all repairs, ordinary or
extraordinary, interior or exterior, structural or otherwise, in and about the Premises and the Property, as shall be required by reason of (a) the performance or existence of Tenant’s Work or Tenant’s Changes; (b) the installation, use,
or operation of Tenant’s Property in the Premises; (c) the moving of Tenant’s Property in or out of the Building; or (d) the misuse or neglect of Tenant or any of its employees, agents, or contractors. Tenant, at its expense, shall replace
all scratched, damaged, or broken doors or other glass in or about the Premises and shall be responsible for all repairs, maintenance, and replacement of wall and floor coverings in the Premises and for the repair and maintenance of all lighting
fixtures therein. All repairs except for emergency repairs made by Tenant as provided herein shall be performed by contractors or subcontractors approved in writing by Landlord prior to commencement of such repairs, which approval shall not be
unreasonably withheld or delayed. If Tenant does not promptly make such arrangements, Landlord may, but need not, make such repairs, maintenance, and replacements, and the costs paid or incurred by Landlord therefor shall be reimbursed by Tenant
promptly after request by Landlord. 
  
 12.2
LANDLORD’S CARE OF PROPERTY. Landlord, at its expense, shall keep and maintain the common areas of the Property and the Systems and Equipment serving the Premises in
good working order, condition, and repair and shall make all repairs, structural and otherwise, interior and exterior, as and when needed in or about the Premises, except for those repairs for which Tenant is responsible pursuant to § 12.1
above or any other provisions of this Lease. Landlord shall maintain and repair all INC in the Building, and Tenant shall have no right to make repairs to INC. The cost of Landlord’s maintenance and repairs pursuant to this Article 12 shall be
reimbursed to landlord to the extent provided in Article 4 above. 
  

 25 

 12.3 WAIVER BY TENANT. Tenant waives the benefits of any statute now
or hereafter in effect which would otherwise afford Tenant the right to make repairs at Landlord’s expense or to terminate this Lease because of Landlord’s failure to keep the Premises in good order, condition, and repair. 
  
 13 RULES AND REGULATIONS 
  
 13.1 OBSERVANCE AND MODIFICATION. Tenant
and its employees and agents shall faithfully observe and comply with the Rules and Regulations attached hereto as Exhibit C (the “Rules”) and such reasonable changes therein (whether by modification, elimination, or addition) as
Landlord at any time or times hereafter may make and communicate in writing to Tenant, so long as such changes do not unreasonably affect the conduct of Tenant’s business in the Premises, except as required by any applicable Law; provided,
however, that in case of any conflict or inconsistency between the provisions of this Lease and any of the Rules as originally promulgated or as changed, the provisions of this Lease shall control. 
  
 13.2 APPLICATION TO TENANT. Nothing in
this Lease shall be construed to impose upon Landlord any obligation to Tenant to enforce the Rules or the terms, covenants, or conditions in any other lease, as against any other tenant, and Landlord shall not be liable to Tenant for violation of
the same by any other tenant or its employees, agents, or visitors. 
  
 14 INSURANCE AND INDEMNIFICATION 
  
 14.1
TENANT’S INSURANCE. Tenant shall obtain and maintain in effect at all times during Tenant’s possession of the Premises the following insurance coverages and policies: 
  
 14.1.1 Liability Insurance. Tenant shall maintain a policy of
commercial general liability insurance, which shall include coverages for (a) personal injury; (b) broad-form contractual liability; (c) owner’s (i.e., Tenant’s) & contractor’s protective; (d) automobile liability; and (e)
broad-form property damage liability. The minimum limits of liability shall be a combined single limit with respect to each occurrence of not less than Two Million Dollars ($2,000,000) and an aggregate limit of not less than Three Million Dollars
($3,000,000). The policy shall contain a cross-liability endorsement and a severability of interest clause. Tenant shall increase the insurance coverage as required by Landlord’s lender or if Landlord’s insurance consultant believes that
the coverage is not adequate. 
  
 14.1.2 Tenant’s
Business Personal Property Insurance. Tenant shall maintain on all of its business personal property, including valuable business papers and accounts receivable; operating supplies; inventory; and furniture, fixtures, and equipment (whether
owned, leased, or rented) (collectively “Business Personal Property”) an “all risk” property damage insurance policy including coverages for earthquake damage and sprinkler leakage and containing an agreed amount endorsement (or,
if applicable, a business owner’s policy with a no-coinsurance provision) in an amount not less than one hundred percent (100%) of the full replacement cost valuation of such Business Personal Property. The proceeds from any such policy shall
be used by Tenant for the replacement of such Business Personal property. 
  
 14.1.3 Workers’ Compensation Insurance. Tenant shall maintain workers’ compensation insurance as required by law and employer’s liability insurance in an amount not less than Five Hundred
Thousand Dollars ($500,000). 
  
 14.1.4 Business
Interruption/Extra Expense Insurance. Tenant shall maintain business interruption or (if applicable) contingent business interruption and extra expense insurance in such amounts as will reimburse Tenant for direct or indirect loss of earnings
and incurred costs attributable to the perils commonly covered by Tenant’s property insurance described in § 14.1.2 above but in no event less than the average total of Tenant’s annual gross receipts during the three-year period
immediately preceding such interruption or loss. Such insurance will be carried 
  

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 with the same insurer that issues the insurance for Tenant’s Business Personal Property pursuant to § 14.1.2
above. 
  
 14.1.5 Other Coverage. Tenant, at its cost, shall maintain such
other insurance as Landlord may reasonably require from. time to time, but in no event may Landlord require any other insurance which is not then available at commercially reasonable rates. 
  
 14.2 TENANT’S INSURANCE
CRITERIA. All insurance required to be maintained by Tenant under this Lease shall conform to the following criteria: 
  
 (i) Tenant’s insurance shall be issued by insurance companies authorized to do business in the State of California with a financial rating of
at least A:XIII for any property insurance and at least A -:1X for any liability insurance, as rated in the most recent edition of Best’s Insurance Reports; 
  
 (ii) Tenant’s insurance shall be issued as primacy and noncontributory; 
  
 (iii) Tenant’s liability and property insurance policies shall
name Tenant as the insured and Landlord, Landlord’s agents, and any Lessors and Holders (as such terms are defined in § 18.1 below) whose names shall have been furnished to Tenant as additional insureds; 
  
 (iv) Tenant’s insurance shall contain an endorsement requiring
at least thirty (30) days’ written notice from the insurance company to each insured and additional insured before cancellation or any material change in the coverage, scope, or amount of any policy; and 
  
 (v) with respect to damage to or loss of Tenant’s Business
Personal Property, a waiver of subrogation must be obtained, as required under § 14.4 below. 
  
 14.2.1 Blanket Coverage. All of the insurance requirements set forth herein on the part of Tenant to be observed shall be deemed satisfied if the
Premises are covered by a blanket insurance policy complying with the limits, requirements, and criteria contained in this Article 14 insuring all or most of Tenant’s facilities in California. 
  
 14.2.2 Evidence of Coverage. A duplicate original policy or a
certificate of insurance shall be deposited with Landlord at the commencement of the Term or, if earlier, upon Tenant’s taking possession of the Premises; and on renewal of the policy a certificate of insurance listing the insurance coverages
required hereunder and naming the appropriate additional insureds shall be deposited with Landlord not less than seven (7) days before expiration of the policy. 
  

14.3 LANDLORD’S INSURANCE. Landlord shall maintain “all risk” property damage insurance containing
an agreed amount endorsement covering not less than one hundred percent (100%) of the full insurable replacement cost valuation of (y) the Building and the tenant improvements, betterments, and the alterations thereto; and (z) Landlord’s
personal property, business papers, furniture, fixtures, and equipment (collectively “Landlord’s Property”), exclusive of the costs of excavation, foundations and footings, and risks required to be covered by Tenant’s insurance,
and subject to commercially reasonable deductibles. Landlord shall also obtain and keep in full force the following policies of insurance: (a) commercial general liability insurance; (b) loss of rent insurance (also known as rent continuation
insurance); (c) workers’ compensation insurance, if required by applicable Law; and (d) such other insurance as Landlord deems appropriate or as may be required by any Holder or Lessor. 
  
 14.4 RELEASES AND WAIVERS OF
SUBROGATION. The purpose of this provision is to allow Landlord and Tenant to allocate and assume certain risks to coincide with insurance coverages required to be maintained pursuant to the terms to this Lease. Landlord and
Tenant recognize the benefit that each will receive from the waivers of subrogation each is required to obtain pursuant to this § 14.4 and that there are significant advantages to each in connection with minimizing duplication of insurance
coverages. 
  

 27 

 Accordingly, Landlord and Tenant agree to accept and place the limitations which follow on each other’s respective
liabilities and responsibility for damages in order to coincide with required insurance coverages. 
  
 14.4.1 Tenant’s Property Agreement. In light of Tenant’s agreement to insure Tenant’s Business Personal Property in accordance with
§ 14.1.2 above, Tenant agrees that Landlord will have no liability to Tenant in the event Landlord damages or destroys, negligently or otherwise, all or any part of Tenant’s Business Personal Property. Tenant will cause to be placed in its
insurance policies covering Tenant’s Business Personal Property a waiver of subrogation so that its insurance company will not become subrogated to Tenant’s rights and will not be able to proceed against Landlord in connection with any
such damage or destruction. 
  
 14.4.2 Landlord’s
Property Agreement. In light of Landlord’s agreement to insure Landlord’s Property in accordance with § 14.3 above, Landlord agrees that Tenant will have no liability to Landlord in the event that Tenant damages or destroys,
negligently or otherwise, all or any part of Landlord’s Property. Landlord will cause to be placed in its insurance policies covering Landlord’s Property a waiver of subrogation so that its insurance company will not become subrogated to
Landlord’s rights and will not be able to proceed against Tenant in connection with any such damage or destruction. 
  
 14.4.3 Tenant’s Release. Landlord shall not be responsible or liable to Tenant for any damages or destruction to Tenant’s Business
Personal Property caused by Landlord’s employees, agents, visitors, invitees, guests, or independent contractors (collectively “Landlord’s Associates”), and Tenant hereby releases Landlord from any claims, liabilities, demands,
losses, damages, consequential damages, and the like, including reasonable attorneys’ fees and court costs (collectively “Claims”) resulting from damage or destruction to Tenant’s Business Personal Property caused directly or
indirectly by Landlord and/or Landlord’s Associates; provided, however, that nothing herein shall be deemed to release Landlord’s independent contractors from any such Claims Tenant may have against Landlord’s independent contractors.

  
 14.4.4 Landlord’s Release. Tenant shall not be
responsible or liable to Landlord for any damages or destruction to Landlord’s Property caused by Tenant’s employees, agents, visitors, invitees, guests, or independent contractors (collectively “Tenant’s Associates”), and
Landlord hereby releases Tenant from any Claims resulting from damage or destruction to Landlord’s Property caused directly or indirectly by Tenant and/or Tenant’s Associates; provided, however, that nothing herein shall be deemed to
release Tenant’s independent contractors from any such Claims Landlord may have against Tenant’s independent contractors. 
  
 14.4.5 Damage to Business and Loss of Rents. In light of Landlord’s agreement to carry continuation of rent insurance pursuant to § 14.3
above and Tenant’s agreement to carry business interruption insurance (extra expense insurance) in accordance with § 14.1.4 above, in the event that Landlord’s Property is damaged or destroyed because of any act or conduct, negligent
or otherwise, by Tenant and/or by Tenant’s Associates, Landlord shall have no rights against Tenant by virtue of such damage or destruction, and Landlord hereby releases Tenant from all Claims, including claims for loss of rent, by Landlord
directly or indirectly resulting from the damage or destruction of Landlord’s Property by conduct by Tenant and/or by Tenant’s Associates. Likewise, in the event that Tenant’s Business Personal Property is damaged or destroyed because
of any act or conduct, negligent or otherwise, by Landlord and/or by landlord’s Associates, Tenant shall have no rights against Landlord by virtue of such damage or destruction, and Tenant hereby releases Landlord from all Claims by Tenant
directly or indirectly resulting from the damage or destruction to Tenant’s Business Personal Property by the conduct of Landlord and/or Landlord’s Associates, including Claims for loss of business or loss of profits. Notwithstanding the
foregoing, nothing herein shall be deemed to release Tenant’s or Landlord’s independent contractors from any liability to Tenant and/or Landlord. 
  

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 14.4.6 Injury and Death to Individuals. Landlord and Tenant understand that waivers of subrogation
do not’apply to injury to and death of individuals. Landlord and Tenant shall each carry insurance, as provided by this Article 14, in connection with injury and death to individuals. Landlord hereby agrees to indemnify and hold Tenant harmless
from any Claims which Tenant may otherwise have with respect to injury or death to individuals occurring within the Property but outside the Premises, except to the extent that such injury or death is caused by Tenant and/or Tenant’s
Associates, through negligence or otherwise, and is not covered by the insurance Landlord is required to carry under this Lease. Likewise, Tenant agrees to indemnify, defend, protect, and hold Landlord harmless from any Claims for injury or death to
persons occurring within the Premises or caused, directly or indirectly, by Tenant or Tenant’s Associates outside the Premises, except to the extent such injuries or death are caused by Landlord and/or Landlord’s Associates, through
negligence or otherwise, and are not covered by the insurance Tenant is required to carry under this Lease. 
  
 14.4.7 Abatement of Rent. Except as may be expressly provided elsewhere in this Lease, Tenant shall not be entitled to Rent abatement and shall not
otherwise have, and hereby releases Landlord from, any Claims resulting from Tenant’s inability to utilize all or any part of the Premises, except to the extent that Tenant is unable to use all or any part of the Premises and does not use all
or any part of the Premises as a result of Landlord’s intentional decision to refuse to provide access to the Building and/or the Premises and/or to provide services and/or utilities to Tenant as required to be provided by Landlord to Tenant
pursuant to this Lease, where such refusal is not caused by a Force Majeure occurrence. 
  
 14.4.8 Availability of Waiver of Subrogation. If an insurance policy cannot be obtained with a waiver of subrogation or is obtainable only by the payment of an additional premium charge above that charged by
insurance companies issuing policies without waiver of subrogation, the party undertaking to obtain the insurance shall notify the other party of this fact. The other party shall have a period of ten (10) days after receiving the notice either to
place the insurance with a company that is reasonably satisfactory to the other party and that will carry the insurance with a waiver of subrogation at no additional cost or to agree to pay the additional premium if such a policy is obtainable at
additional cost. If the insurance cannot be obtained or the party in whose favor a waiver of subrogation is desired refuses to pay the additional premium charged, the other party is relieved of the obligation to obtain a waiver of subrogation with
respect to the particular insurance involved. 
  
 14.5 OTHER
CASES OF DAMAGE OR INJURY. In all cases not covered by the foregoing provisions of this Article 24, Tenant hereby assumes all risk of damage to property or injury to
persons in, upon, or about the Premises from any cause other than the active negligence or intentional misconduct of Landlord and its agent or employees. Without limiting the generality of the foregoing, Landlord shall not be liable for injury or
damage which may be sustained by the person, goods, wares, merchandise, or property of Tenant or Tenant’s Associates or any other person in or about the Premises caused by or resulting from fire, steam, electricity, gas, water or rain, which
may leak or flow from or into any part of the Premises, or from the breakage, leakage, obstruction, or other defects of the Systems and Equipment, pipes, sprinklers, wires, INC, appliances, plumbing, heating, air-conditioning, or lighting fixtures
of the same, whether the damage or injury results from conditions arising upon the Premises or upon other portions of the Property, the Complex, or from other sources. Landlord shall not be liable for any damages arising from any act or omission of
any other tenant or occupant of the Property or Complex. In all cases not covered by the foregoing provisions of this Article 14, Tenant shall indemnify, defend, protect, and hold Landlord harmless against (a) any and all Claims arising from any
death or injury to any person or damage to any property whatsoever occurring in, on, or about the Premises or any part thereof, and (b) any and all Claims occurring in, on or about any of the Common Areas, the Property, or the Complex, when such
injury or damage is caused in whole or in part by the act, negligence, fault, or omission of any duty with respect to the same by Tenant or Tenant’s Associates. In all cases not covered by the foregoing provisions of this Article 14, tenant
shall further indemnify, defend, protect, and hold Landlord harmless from and against any and all Claims arising from any breach or default in the performance of any obligation on 
  

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 Tenant’s part to be performed under this Lease, or arising from any act or negligence of Tenant or Tenant’s
Associates, and from and against all costs, attorneys’ fees, expenses, and liabilities incurred in connection with any such Claim or any action or proceeding brought thereon. In case any action or proceeding be brought against Landlord by
reason of any such Claim, Tenant, upon notice from Landlord, shall defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord; provided, however, that Tenant shall not be liable in any case for damage to property or
death or injury to person(s) occasioned by the active negligence or intentional misconduct of Landlord or Landlord’s Associates, unless covered by insurance Tenant is required to provide. 
  
 15 DAMAGE OR DESTRUCTION 
  
 15.1 LOSS COVERED BY
INSURANCE. If at any time prior to the expiration or termination of this Lease the Premises or the Property is wholly or partially damaged or destroyed by any casualty which results in a loss to Landlord is fully covered by
insurance maintained by Landlord or for Landlord’s benefit (or required to be maintained by Landlord pursuant to § 14.3 above), which casualty renders the Premises totally or partially inaccessible or unusable by Tenant in the ordinary
conduct of Tenant’s business, the parties agree that the following provisions shall modify their obligations under this Lease after such damage or destruction. 
  
 15.1.1 Repairs Which Can Be Completed Within Six (6) Months. Within thirty (30) days after Tenant’s written
notice to Landlord of such damage or destruction, Landlord shall provide Tenant with notice of its determination of whether the damage or destruction can be repaired within six (6) months after the commencement of the work of repairing such damage
or destruction without the payment of overtime or other premiums. If all repairs to Premises or Property can, in Landlord’s judgement, be completed within six (6) months following the date of the commencement of the work of repairing such
damage or destruction without the payment of overtime or other premiums, Landlord shall, at Landlord’s expense, repair the same; and this Lease shall remain in full force and effect, except that a proportionate reduction of the Base Rent shall
be allowed Tenant to the extent that the Premises shall be rendered inaccessible or unusable by Tenant and are not used by Tenant during the period of time that such portion is unusable or inaccessible and not used by Tenant. 
  
 15.1.2 Repairs Which Cannot Be Completed Within Six (6) Months. If
all such repairs to the Property and Premises cannot, in Landlord’s judgement, be completed within six (6) months following the commencement of the work of repairing such damage or destruction without the payment of overtime or other premiums,
Landlord shall notify Tenant of such determination; and in such an event, either Landlord or Tenant may, at its option, upon written notice to the other party given within sixty (60) days after the occurrence of such damage or destruction, elect to
terminate this Lease as of the date of the occurrence of such damage or destruction. In the event that neither Landlord nor Tenant elects to terminate the Lease in accordance with the foregoing provisions, then Landlord shall, at Landlord’s
expense, repair such damage or destruction; and in such event, this Lease shall continue in full force and effect, except that the Base Rent shall be proportionately reduced as provided in § 15.1.1 above; provided, however, that if any such
repair is not commenced by Landlord within ninety (90) days after the occurrence of such damage or destruction or is not substantially completed by Landlord within nine (9) months after the occurrence of such damage or destruction, then in either
such event Tenant may, at its option, upon written notice to Landlord, elect to terminate this Lease as of the date of Landlord’s receipt of such notice. Notwithstanding the foregoing, Tenant shall have no right to terminate this Lease in the
situation just described if all of the following conditions are met: (x) Landlord shall have informed Tenant in its notice of determination that the repair of such damage or destruction could not be substantially completed by Landlord within nine
(9) months after the occurrence of such damage or destruction; (y) Tenant shall not have elected to terminate the Lease by written notice delivered to Landlord within sixty (60) days after the occurrence of such damage or destruction; and (z)
Landlord shall have commenced the work of repairing such damage or destruction. 
  

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 15.2 LOSS NOT COVERED BY INSURANCE. If
at any time prior to the expiration or earlier termination of this Lease the Premises or the Property is totally or partially damaged or destroyed in connection with a casualty, which loss to Landlord is not fully covered by insurance maintained by
Landlord or for Landlord’s benefit (or required to be maintained by Landlord pursuant to § 14.3 above); and if such damage renders the Premises inaccessible or unusable to Tenant for their intended purpose in the ordinary course of its
business, Landlord may, at its option, upon written notice given to Tenant within sixty (60) days after Tenant’s written notice to Landlord of the occurrence of such damage or destruction, either (a) elect to repair or to restore such damage or
destruction or (b) elect to terminate this Lease. If Landlord elects to repair or restore such damage or destruction, this Lease shall continue in full force and effect, except that the Base Rent shall be proportionately reduced as provided in
§ 15.1.1 above. If Landlord does not elect by notice to Tenant to repair such damage, the Lease shall terminate as of the date of Tenant’s receipt of Landlord’s notice of election to terminate. Notwithstanding the foregoing, if all
repairs to the Premises or the Building cannot, in Landlord’s reasonable judgement, be completed within six (6) months following the date of the commencement of the work of repairing such damage or destruction without the payment of overtime or
other premiums, then either Landlord or Tenant may at the option of either, upon written notice to the other party given within sixty (60) days after the occurrence of such damage or destruction, elect to terminate this Lease as of the date of such
notice. 
  
 15.3 DESTRUCTION DURING
FINAL YEAR. Notwithstanding anything to the contrary contained in §§ 15.1 and 15.2, if the Premises or the Building are wholly or partially damaged or destroyed within the final twelve (12) months of the
Term of this Lease or, if an applicable renewal option has been exercised, during the last year of any renewal term, in such a way that Tenant shall be prevented from using the Premises for at least thirty (30) consecutive days as a result of such
damage or destruction, then either Landlord or Tenant may, at the option of either, by written notice to the other party delivered within sixty (60) days after the occurrence of such damage or destruction, elect to terminate the Lease as of the date
of such notice. 
  
 15.4 DESTRUCTION OF
TENANT’S PROPERTY. Under no circumstances shall Landlord be required to repair any injury or damage to, or make any repairs to or replacements of, Tenant’s Property. However, as part of
Operating Expenses, Landlord shall cause to be insured the Improvements in the Premises which do not consist of Tenant’s Property and shall cause such Improvements to be repaired and restored at Landlord’s sole expense, except that Tenant
shall pay any applicable deductible. Landlord shall have no responsibility for any contents placed or kept in or on the Premises or the Property by Tenant or Tenant’s employees or invitees or any other person claiming through Tenant.

  
 15.5 EXCLUSIVE REMEDY. Landlord and
Tenant agree that their respective rights and obligations in the event of any damage or destruction of the Premises, Property, or Complex shall be governed exclusively by this Lease. Tenant, as a material inducement to Landlord entering into this
Lease, irrevocably waives and releases Tenant’s rights under California Civil Code §§ 1932(2), 1933(4), and 1942, as the same may be modified or replaced hereafter. No damages, compensation, setoff, allowance, or claim shall be
payable by Landlord for any inconvenience, interruption, or cessation of Tenant’s business or any annoyance arising from any damage to or destruction of all or any portion of the Premises, Property, or Complex. 
  
 16 EMINENT DOMAIN 
  
 16.1 CONDEMNATION. If the whole or any material part of the Premises or
Property shall be taken by power of eminent domain or condemned by any competent authority for any public or quasi-public use or purpose; or if any adjacent property or street shall be so taken, condemned, reconfigured, or vacated by such authority
in such manner as to require the use, reconstruction, or remodeling of any part of the Premises or Property; or if Landlord shall grant a deed or other instrument in lieu of such taking by eminent domain or condemnation (collectively
“Takings”), Landlord shall have the option to terminate this Lease upon ninety (90) days’ notice, provided such notice is given no later than one hundred and eighty (180) days after the date of such Taking. Tenant shall have
reciprocal termination rights, on the 
  

 31 

 same terms and conditions and to be exercised in the same manner as the foregoing sentence provides, if the whole or any
material part of the Premises is permanently taken, or if access to the Premises is permanently materially impaired. 
  
 16.2 RENTAL APPORTIONMENT. All Rent shall be apportioned as of the date of such termination or the date of such Taking, whichever
shall first occur. If any part of the Premises shall be taken, and this Lease shall not be so terminated, the Rent shall be proportionately abated. 
  
 16.3 AWARDS AND DAMAGES. Landlord shall be entitled to receive the entire award or payment in connection with any
Taking, except that Tenant shall have the right to file any separate claim available to Tenant for any taking of Tenant’s personal property and fixtures belonging to Tenant and removable by Tenant upon expiration of the Term, and for moving
expenses, so long as such claim does not diminish the award available to Landlord and such claim is payable separately to Tenant. 
  
 16.4 TEMPORARY CONDEMNATION. If part or all of the Premises are condemned for a limited period of time (“Temporary
Condemnation”), this Lease shall remain in effect. The Rent and Tenant’s obligations for the part of the Premises taken shall abate during the Temporary Condemnation in proportion to the part of the Premises that Tenant is unable to use in
its business operations as a result of the Temporary Condemnation. Landlord shall receive the entire award for any Temporary Condemnation. 
  
 17 ASSIGNMENT AND SUBLETTING 
  
 17.1 CONSENT REQUIRED FOR TRANSFER. Tenant agrees that it shall not assign, sublet, mortgage,
hypothecate, or encumber this Lease, nor permit or allow the Premises or any part thereof to be used or occupied by others, without the prior written consent of Landlord in each instance. The actions described in the foregoing sentence are referred
to collectively herein as “Transfers” and individually as a “Transfer.” If the Premises or any part thereof be sublet or occupied by anybody other than Tenant, Landlord may, after default by Tenant, collect rent from the
subtenant or occupant and apply the net amount collected to the Rent herein reserved; but no Transfer, occupancy, or collection shall be deemed a waiver of the provisions hereof, the acceptance of the subtenant or occupant as tenant, or a release of
Tenant from the further performance hereunder by Tenant. The consent by Landlord to a Transfer shall not relieve Tenant from obtaining the Landlord’s express written consent to any further Transfer. In no event shall any permitted sublessee
assign or encumber its sublease or further sublet all or any portion of its sublet space, or otherwise suffer or permit the sublet space or any part thereof to be used or occupied by others, without Landlord’s prior written consent in each
instance. 
  
 17.1.1 Corporate Transferor. If
Tenant is a corporation, the provisions of § 17.1 shall apply to a transfer (by one or more transfers) of a majority of the stock of Tenant as if such transfer of a majority of the stock of Tenant were an assignment of this Lease. 

 
 17.2 NOTICE OF INTENT TO
TRANSFER. If Tenant shall at any time or times during the Term of this Lease desire to assign this Lease or sublet all or part of the Premises, Tenant shall give notice thereof (the “Transfer Notice”) to Landlord, which
notice shall set forth all of the following: 
  

	 	(a)	the proposed terms of the assignment or subletting, including (i) the effective or commencement date thereof, which shall be not less than thirty (30) nor more than one hundred
eighty (180) days after the giving of such notice; (ii) in the case of a proposed assignment, the consideration therefor; and (iii) in the case of a proposed subletting, the rental rate to be paid by the proposed subtenant (including any escalation
or Additional Rent payable), the term of the proposed sublease (including any renewal options), any work to be performed or paid for by Tenant, the amount of any security deposit, the cost and extent of any so-called “take-over”
obligations to be assumed by Tenant on behalf of such subtenant, the amount of any rent 

  

 32 

	 	    	concessions to be granted by Tenant, and any other additional monetary or so-called “business” terms or conditions; 

  

	 	(b)	a statement setting forth in reasonable detail the identity of the proposed assignee or subtenant, the nature of its business, and its proposed use of the Premises; and

  

	 	(c)	current financial information with respect to the proposed assignee or subtenant, including its most recent financial report, and any other information which may reasonably be
required by Landlord. 

  
 17.3
LANDLORD’S RECAPTURE RIGHT. The Transfer Notice shall be deemed an offer from Tenant to Landlord whereby Landlord (or Landlord’s designee) may, at its option, terminate this
Lease as to all or the affected portion of the Premises (as the case may be) as of the effective date of the proposed Transfer. Landlord may exercise its recapture right by notice to Tenant at any time within thirty (30) days after Landlord’s
receipt of Tenant’s Transfer Notice; and during such thirty-day period Tenant shall not assign this Lease nor sublet such space to any person. 
  
 17.3.1 Date of Termination. If Landlord exercises its option to terminate this Lease as provided in § 17.3 above, this Lease shall end
and expire on the date that such Transfer was to be effective or commence, as the case may be, and the Base Rent and Additional Rent shall be paid and apportioned to such date. 
  
 17.4 CONDITIONS OF CONSENT. If Landlord does not exercise its recapture right pursuant
to § 17.3 above, and providing that Tenant is not in default of any of Tenant’s obligations under this Lease after notice and the expiration of any applicable grace period, Landlord’s consent (which must be in writing and in form
reasonably satisfactory to Landlord) to the proposed assignment or sublease shall not be unreasonably withheld or delayed, provided the following conditions are met: 
  

	 	(a)	Tenant shall have complied with the provisions of § 17.2 above, and Landlord shall not have exercised its recapture right pursuant to § 17.3 above within the time
permitted therefor; 

  

	 	(b)	In Landlord’s reasonable judgement the proposed assignee or subtenant is engaged in a business which would use the Premises, or the relevant part thereof, in a manner which is
in keeping with the then-current standards of the Building, is limited to the use expressly permitted under this Lease, and will not violate any negative covenant or other restriction or agreement as to use contained in any other lease of space in
the Complex; 

  

	 	(c)	The proposed assignee or subtenant is a reputable entity or person of good character and with reasonably sufficient financial worth considering the responsibility involved (and in
no event of less financial standing than Tenant), is not subject to any toxic or hazardous materials cleanup order with respect to any other property, and Landlord has been furnished with reasonable proof thereof; 

  

	 	(d)	Neither the proposed assignee or sublessee nor any person which, directly or indirectly, controls, is controlled by, or is under common control with, the proposed assignee or
sublessee or any person who controls the proposed assignee or sublessee, is then an occupant of any part of the Complex, provided Landlord then has suitable space in the Complex available for leasing. For purposes of this Lease control shall
be deemed to mean ownership of more than fifty percent (50%) of all the voting stock of a corporation or more than fifty percent (50%) of all the legal and equitable interest in any other business entity; 

  

	 	(e)	The proposed assignee or sublessee is not a person or entity with whom Landlord is then negotiating to lease space in the Building; 

  

 33 

	 	(f)	The form of the proposed lease shall be in form reasonably satisfactory to Landlord and shall comply with the applicable provisions of this Article 17; 

  

	 	(g)	There shall not be more than two (2) subtenants (not including the Permitted Occupant (as defined in § 17.14 below) of the Premises); 

  

	 	(h)	The amount of the aggregate rent to be paid by the proposed subtenant is not less than the then-current market rent per rentable square foot for comparable space in the Complex, as
though the Premises were vacant, and the rental and other terms and conditions of the sublease are the same as those contained in the proposed sublease furnished to Landlord in the Transfer Notice pursuant to § 17.2 above;

  

	 	(i)	Tenant shall reimburse Landlord on demand for any reasonable costs that may be incurred or paid by Landlord to third persons in connection with said assignment or sublease,
including costs of making investigations as to the acceptability of the proposed assignee or subtenant and legal costs incurred in connection with the granting of any requested consent; and 

  

	 	(j)	Tenant shall not have advertised or publicized in any way the availability of the Premises without prior notice to and approval by Landlord, nor shall any advertisement state the
name (as distinguished from the address) of the Complex or the rental rate; 

  

	 	(k)	Tenant shall not have listed the Premises for subletting or assignment at a rental rate less than the greater of (i) the Base Rent and Additional Rent then payable hereunder for
such space or (ii) the Base Rent and Additional Rent at which Landlord is then offering to lease other comparable space in the Building; and 

  

	 	(l)	The sublease shall not allow the use of the Premises or any part thereof for (i) the sale of food for on or off-premises consumption or (ii) use by a foreign or domestic
governmental agency. 

  
 17.5 CONTINUATION
OF LEASE TERMS. Each subletting pursuant to this Article 17 shall be subject to all of the covenants, agreements, terms, provisions, and conditions contained in this Lease. Notwithstanding any such
subletting to any other subtenant and/or acceptance of Rent by Landlord from any subtenant, Tenant shall remain liable for the payment of the Base Rent and Additional Rent due and to become due hereunder and for the performance of all the covenants,
agreements, terms, provisions, and conditions contained in this Lease on the part of Tenant to be performed and all acts and omissions of any licensee or subtenant or anyone claiming under or through any subtenant which shall be in violation of any
of the obligations of this Lease; and any such violation shall be deemed to be a violation by Tenant. Tenant further agrees that notwithstanding any such subletting, no other and further subletting of the Premises by Tenant or any person or entity
claiming through or under Tenant shall or will be made except upon compliance with and subject to the provisions of this Article 17. If Landlord shall decline to give its consent to any proposed assignment or sublease, or if Landlord shall exercise
its recapture right under § 17.3 above, Tenant shall indemnify, defend, protect, and hold Landlord harmless against and from any and all Claims resulting from any Claims that may be made against Landlord by the proposed assignee or sublessee or
by any brokers or other persons claiming a commission or similar compensation in connection with the proposed assignment or sublease. 
  
 17.6 LAPSE OF CONSENT. In the event that Landlord consents to a proposed Transfer described in the Transfer Notice and
Tenant fails to execute and deliver the assignment or sublease described in the Transfer Notice to which landlord consented within one hundred twenty (120) days after the giving of such consent, then Tenant shall again comply with all of the
provisions and conditions of § 17.2 above before assigning this Lease or subletting all or part of the Premises. 
  

 34 

 17.7 TRANSFER DOCUMENTATION. With respect to each and every Transfer authorized by
Landlord under the provisions of this Lease, it is further agreed as follows: 
  

	 	(a)	no subletting shall be for a term ending later than one day prior to the Expiration Date of this Lease; 

  

	 	(b)	no sublease shall be valid, and no subtenant shall take possession of the Premises or any part thereof, until an executed counterpart of such sublease has been delivered to
Landlord; 

  

	 	(c)	each sublease shall provide that it is subject and subordinate to this Lease and to the matters to which this Lease is or shall be subordinate, and that in the event of termination
(whether by voluntary surrender or otherwise), re-entry, or dispossession by Landlord under this Lease, Landlord may, at its option, take over all of the right, title, and interest of Tenant, as sublessor, under such sublease, and such subtenant
shall, at Landlord’s option, attorn to Landlord pursuant to the then-executory provisions of such sublease, except that Landlord shall not be (i) liable for any previous act or omission of Tenant under such sublease; (ii) subject to any offset,
credit, or allowance not expressly provided in such sublease which theretofore accrued to such subtenant against Tenant or (iii) bound by any previous modification of such sublease or by any previous prepayment of more than one month’s rentals;
and 

  

	 	(d)	each assignment or sublease document must provide that the assignee or subtenant expressly assumes all obligations of the Tenant under the Lease as joint and several obligations
without any release of Tenant. 

  
 17.8 TRANSFER
PREMIUM. If Landlord shall give its consent to any assignment of this Lease or to any sublease, Tenant shall in consideration therefor pay to Landlord, as Additional Rent, the following amounts (collectively the
“Transfer Premium”): 
  

	 	(a)	in the case of an assignment, an amount equal to fifty percent (50%) of all sums and other considerations paid to Tenant by the assignee for or by reason of such assignment,
including sums paid for the sale of Tenant’s Property, but excluding the following: (i) in the case of a sale of Tenant’s Property, the then-current net unamortized or undepreciated cost thereof determined on the basis of Tenant’s
federal income tax returns; (ii) then-customary brokerage commissions being paid by Landlord for leasing of space in the Building or, if less, the brokerage commission paid by Tenant in connection with the assignment; (iii) reasonable legal fees and
disbursements; and (iv) reasonable amounts paid by Tenant for tenant improvements constructed for the assignee; and 

  

	 	(b)	in the case of a sublease, fifty percent (50%) of any rents, additional charge, or other consideration payable under the sublease to Tenant by the subtenant which is in excess of
the Base Rent and Additional Rent accruing during the term of the sublease in respect of the subleased space (at the rate per square foot payable by Tenant hereunder) pursuant to the terms hereof, including sums paid for the sale or rental of
Tenant’s Property, but excluding the following: (i) in the case of the sale or lease of Tenant’s Property, the then-current net unamortized or undepreciated cost thereof determined on the basis of Tenant’s federal income tax returns;
(ii) then-customary brokerage commissions being paid by Landlord for leasing of space in the Building or, if less, the brokerage commission paid by Tenant in connection with the sublease; (iii) reasonable legal fees and disbursements; and (iv)
reasonable amounts paid by Tenant for tenant improvements constructed for the subtenant. 

  

 35 

 The sums payable as the Transfer Premium under this § 17.8 shall be paid to Landlord as and when payable by the
subtenant or assignee to Tenant. 
  
 17.9 ASSUMPTION
BY TRANSFEREE. Any Transfer, whether made with Landlord’s consent pursuant to § 17.1 or without landlord’s consent pursuant to § 17.1.1, shall be made only if, and shall not be effective until,
the assignee or subtenant shall execute, acknowledge, and deliver to Landlord an agreement in form and substance satisfactory to Landlord under which the assignee or transferee shall assume the obligations of this Lease on the part of Tenant to be
performed or observed, from and after the date of Transfer, and whereby the assignee or transferee shall agree that the provisions in § 17.1 shall, notwithstanding such Transfer, continue to be binding upon it in respect of all future
Transfers. The original named Tenant covenants that, notwithstanding any Transfer, whether or not in violation of the provisions of this Lease, and notwithstanding the acceptance of Base Rent and/or Additional Rent by Landlord from an assignee,
transferee, or any other party, the original named Tenant shall remain fully liable for the payment of the Base Rent and Additional Rent and for the other obligations of this Lease on the part of Tenant to be performed or observed. 
  
 17.10 NO WAIVER OR
DISCHARGE. The joint and several liability of Tenant and any immediate or remote successor in interest of Tenant and the due performance of the obligations of this Lease on Tenant’s part to be performed or observed shall not
be discharged, released, or impaired in any respect by any agreement or stipulation made by Landlord extending the time of, or modifying any of the obligations of, this Lease, or by any waiver or failure of Landlord to enforce any of the obligations
of this Lease. 
  
 17.11 LISTING OF
NAME. The listing of any name other than that of Tenant, whether on the doors of the Premises or the Building directory, or otherwise, shall not operate to vest any right or interest in this Lease or in the Premises, nor shall it
be deemed to be the consent of Landlord to any Transfer of this Lease or to any sublease of the Premises or to the use or occupancy of the Premises by others. 
  

17.12 NET PROFITS AGREEMENT. Anything contained in the foregoing provisions of this Article 17 to the contrary
notwithstanding, neither Tenant nor any other person or entity having an interest in the possession, use, occupancy, or utilization of the Premises shall enter into any lease, sublease, license, concession, or other agreement for use, occupancy, or
utilization of space in the Premises which provides for rental or other payment for such use, occupancy, or utilization based, in whole or in part, on the net income or profits derived by any person from the premises leased, used, occupied, or
utilized (other than an amount based on a fixed percentage or percentages of receipts or sales); and any such purported lease, sublease, license, concession, or other agreement shall be absolutely void and ineffective as a conveyance of any right or
interest in the possession, use, occupancy, or utilization of any part of the Premises. 
  
 17.13 AFFILIATES. Notwithstanding anything to the contrary in this Article 17, Landlord’s consent shall not be required in the event Tenant desires to assign this Lease or sublet the Premises or any portion
thereof to any corporation or entity which controls, is controlled by, or is under common control with Tenant, provided and subject to the following conditions: 
  

	 	(a)	Tenant shall not be in default of any of the terms, covenants, or conditions on Tenant’s part to observe or perform hereunder; 

  

	 	(b)	such sublet or assignment shall be subject to all of the terms, covenants, and conditions of this Lease; 

  

	 	(c)	Tenant shall notify Landlord of such sublet or assignment in accordance with § 17.2 hereof and furnish Landlord with reasonably satisfactory evidence that such sublessee or
assignee controls, is controlled by, or is under common control with Tenant; and 

  

 36 

	 	(d)	in the event of such merger, consolidation, or transfer of substantially all of Tenant’s assets, the successor to Tenant has a net worth, computed in accordance with
generally-accepted accounting principles, at least equal to the greater of (i) the net worth of Tenant immediately prior to such merger, consolidation, or transfer or (ii) the net worth of Tenant herein named on the date of this Lease; and proof
satisfactory to Landlord of such net worth shall have been delivered to Landlord at least ten (10) days prior to the effective date of any such transaction. 

  
 As used herein, the terms control and common control shall be deemed to mean that the ownership of fifty percent (50%) or more
of all of the issued and outstanding voting shares of such corporation, or fifty percent (50%) or more of all the legal and equitable interest in any such business entities. 
  
 17.14 PERMITTED OCCUPANTS. Landlord hereby agrees that the provisions of this Article 17 shall not
apply to the shared occupancy of individual offices in the Premises with Tenant by individuals renting not more than one (i) such office (the “Permitted Occupant”), provided that the space occupied by the Permitted Occupant shall not be
separately demised or contain separate entrances, demarcations, or reception areas and the occupancy by the Permitted Occupant shall be upon and subject to all of the terms and conditions of this Lease. In addition to the foregoing, and
notwithstanding anything to the contrary herein, Tenant shall have the right to sublease a portion of the Premises to Jiwire on a month-to-month basis subject to the terms and conditions of the Lease. Jiwire shall occupy a space of not more than two
(2) private offices and two (2) cubicles or more than a total square footage of 1,2oo rsf. Jiwire shall be required to obtain liability insurance as specified under the Lease. 
  
 18 SUBORDINATION AND ATTORNMENT 
  
 18.1 SUBORDINATION OF LEASE. This Lease and all rights of Tenant hereunder are and shall
be subject and subordinate in all respects to (a) all ground leases, overriding leases, and underlying leases of the Building, Property, and/or the Complex now or hereafter existing; (b) all mortgages which may now or hereafter affect the Building,
Property, or Complex and any of such leases, whether or not such mortgages shall also cover other lands and/or buildings; (c) each and every advance made or hereafter to be made under such mortgages; and (d) to all renewals, modifications,
replacements, and extensions of such leases and such mortgages and spreaders and consolidations of such mortgages. This § 18.l shall be self-operative, and no further instrument of subordination shall be required. In confirmation of such
subordination, Tenant shall promptly execute and deliver any instrument that Landlord, the lessor of any such lease or the holder (“Holder”) of any such mortgage or any of their respective successors in interest may reasonably request to
evidence such subordination. The leases to which this Lease is, at the time referred to, subject and subordinate pursuant to this Article 18 are hereinafter sometimes referred to as “Superior Leases”; the mortgages to which this Lease is,
at the time referred to, subject and subordinate are hereinafter sometimes referred to as “Superior Mortgages”; and the lessor of a superior lease or its successor in interest at the time referred to is sometimes hereinafter referred to as
a “Lessor.” Notwithstanding the foregoing, Tenant agrees, upon written request from landlord or any Holder or Lessor, to reorder the relative priority of the Lease with respect to any particular Superior Mortgage or Superior Lease so as to
subordinate the lien of any such Superior Mortgage or Superior Lease to the Lease. Tenant agrees to execute any instrument which Landlord or any Holder or Lessor may present in order to effect such prioritization of the Lease, provided that such
instrument does not modify any material term of the Lease or increase Tenant’s obligations thereunder. 
  
 18.2 NOTICE AND CURE RIGHT. In the event of any action or omission of Landlord which would give Tenant the right, immediately or after lapse of a
period of time, to cancel or terminate this Lease, or to claim a partial or total eviction, Tenant shall not exercise such right unless and until (i) Tenant shall have given written notice of such act or omission to the Holder of each Superior
Mortgage and the Lessor of each Superior Lease whose name and address shall previously have been furnished to Tenant in writing; and (ii) unless such act or omissioh shall be one which is not capable of being remedied by Landlord or such mortgage
Holder or Lessor within a reasonable period of time, a reasonable period for remedying 
  

 37 

 such act or omission shall have elapsed following the giving of such notice and following the time when such Holder or
Lessor shall have become entitled under such Superior Mortgage or Superior Lease, as the case may be, to remedy the same (which reasonable period shall in no event be less than the period to which Landlord would be entitled under this Lease or
otherwise, after similar notice, to effect such remedy), provided such Holder or Lessor shall with due diligence give Tenant written notice of intention to remedy such act or omission and shall thereafter diligently and continuously prosecute such
cure to completion. 
  
 18.3    ATTORNMENT. If the Lessor of a Superior Lease or the Holder of a Superior Mortgage shall succeed to the rights of Landlord under this Lease, whether through possession or
foreclosure action or delivery of a new lease or deed, then at the request of such party so succeeding to Landlord’s rights or other person having or acquiring title by virtue of such foreclosure or termination (herein sometimes referred to as
“Successor Landlord”) and upon such Successor Landlord’s written agreement to accept Tenant’s attornment, Tenant shall attorn to and recognize such Successor Landlord as Tenant’s landlord under this Lease and shall promptly
execute and deliver any instrument that such Successor Landlord may reasonably request to evidence such attornment. Upon such attornment this Lease shall continue in full force and effect as a direct lease between the Successor Landlord and Tenant
upon all of the terms, conditions, and covenants in this Lease, except as follows: 
  

	 	(a)	the Successor Landlord shall not be liable for any previous act or omission of Landlord under this Lease; 

  

	 	(b)	the Successor Landlord shall not be subject to any offset (unless expressly provided for in this Lease) which shall have theretofore accrued to Tenant against Landlord;

  

	 	(c)	the Successor Landlord shall not be bound by any previous modification of this Lease, unless expressly provided for in this Lease, or by any previous prepayment of more than one
month’s Base Rent, unless such modification or prepayment shall have been expressly approved in writing by the Lessor of the Superior Lease or the Holder of the Superior Mortgage through or by reason of which the Successor Landlord shall have
succeeded to the rights of Landlord under this Lease. 

  
 19 FINANCING REQUIREMENTS 
 19.1    LENDER-REQUESTED MODIFICATIONS.
If, in connection with obtaining financing or refinancing for the Property or Complex a prospective lender shall request reasonable modifications to this Lease as a condition to such financing or refinancing, Tenant shall not withhold, delay, or
unreasonably condition its consent thereto. It is agreed that, among the modifications which shall be deemed reasonable, are modifications to the subordination and attornment provisions of this Lease, modifications to the notice provisions of this
Lease, modifications to the provisions of this Lease which permit the lender to cure any defaults by Landlord, and modifications to the provisions which grant additional time to cure as may be reasonably required by the lender. 
  
 19.2    FAILURE TO
COMPLY. If Tenant fails or refuses to execute and deliver to Landlord, within fifteen (15) days after written notice to do so, the amendment(s) to this Lease accomplishing such reasonable modification(s), Landlord,
at its sole option, shall have the right either (a) to terminate this Lease or (b) to execute the amendment for and on behalf of Tenant as its attorney-in-fact. Tenant hereby irrevocably appoints Landlord as its attorney-in-fact solely to execute
any documents required to carry out the intent of § 19.1 above on behalf of Tenant. 
  
 20 DEFAULT 
  
 20.1    TENANT’S DEFAULT. Tenant’s failure to perform any of its obligations under this Lease when due and in the manner required shall
constitute a material breach and default (“Event of Default”) of this 
  

 38 

 Lease by Tenant, subject to any cure period(s) permitted or available under applicable laws or statutes. in addition, the
following shall also be deemed Events of Default hereunder: 
  

	 	(a)	Tenant’s failure to take possession of the Premises for a period of sixty (60) days or longer after the Commencement Date; 

  

	 	(b)	Tenant’s abandonment or vacation of the Premises; 

  

	 	(c)	any material misrepresentation or omission herein or in any financial statements or other materials provided by Tenant or any Guarantor in connection with negotiating or entering
this Lease or in connection with any Transfer under Article 17; 

  

	 	(d)	cancellation of any guaranty of this Lease by any Guarantor; 

  

	 	(e)	failure by Tenant to cure within any applicable times permitted thereunder any default under any other lease for space in the Complex or any other buildings owned or managed by
Landlord or its affiliates now or hereafter entered by Tenant; and any Default hereunder not cured within the times permitted for cure herein shall, at Landlord’s election, constitute a default under any other such lease or leases;

  

	 	(f)	The levy of a writ of attachment or execution on this Lease or on any of Tenant’s property; 

  

	 	(g)	Tenant’s or any Guarantor’s general assignment for the benefit of creditors or arrangement, composition, extension, or adjustment with its creditors;

  

	 	(h)	Tenant’s or any Guarantor’s filing of a voluntary petition for relief, or the filing of a petition against Tenant or any Guarantor in a proceeding under the Federal
Bankruptcy laws or other insolvency laws which is not withdrawn or dismissed within forty-five (45) days thereafter; or, under the provisions of any law providing for reorganization or winding up of corporations, the assumption by any court of
competent jurisdiction of jurisdiction, custody, or control of Tenant or any substantial part of its property, or of any Guarantor, where such jurisdiction, custody, or control remains in force unrelinquished, unstayed, or unterminated for a period
of forty five (45) days; 

  

	 	(i)	In any proceeding or action in which Tenant is a party, the appointment of a trustee, receiver, agent, or custodian to take charge of the Premises or Tenant’s Property for the
purpose of enforcing a lien against the Premises or Tenant’s Property; or 

  

	 	(j)	If Tenant or any Guarantor is a partnership or consists of more than one (1) person or entity, the involvement of any partner of the partnership or other person or entity in any of
the acts or events described in subsections (i) through (1) above. 

  
 20.2    LANDLORD’S REMEDIES. Upon the occurrence of an Event of Default hereunder, Landlord shall have the right, in addition to any other rights or
remedies Landlord may have under Laws, at Landlord’s option, without further notice or demand of any kind, to elect to do one of the following alternatives: 
  

	 	(i)	Terminate this Lease and Tenant’s right to possession of the Premises, re-enter the Premises, and take possession thereof; and Tenant shall have no further claim to the
Premises or under this Lease; or 

  

	 	(ii)	Continue this Lease in effect and collect any unpaid Rent or other charges which have theretofore accrued or which thereafter become due and payable. It is intended hereunder that
Landlord have the remedy described in California Civil Code § 1951.4, which provides that a landlord may continue a lease in effect after a 

  

 39 

 tenant’s breach and abandonment and recover rent as it becomes due, if tenant has the right to
sublease or assign, subject only to reasonable limitations. 
  
 In the event of
any re-entry or retaking of possession by Landlord, Landlord shall have the right, but not the obligation, to remove all or any part of Tenant’s Property from the Premises and to place such property in storage at a public warehouse at the
expense and risk of Tenant. 
  
 20.2.1    
No Waiver of Default. The waiver by Landlord of any Event of Default or of any other breach of any term, covenant, or condition of this Lease shall not be deemed a waiver of such term, covenant, or condition or of any subsequent breach of the
same or any other term, covenant, or condition. Acceptance of Rent by Landlord subsequent to any Event of Default or breach hereof shall not be deemed a waiver of any preceding Event of Default or breach other than the failure to pay the particular
Rent so accepted, regardless of Landlord’s knowledge of any breach at the time of such acceptance of Rent. Landlord shall not be deemed to have waived any term, covenant, or condition of this Lease, unless Landlord gives Tenant written notice
of such waiver. Tenant should not rely upon Landlord’s failure or delay in enforcing any right or remedy hereunder. 
  
 20.2.2     Landlord’s Right to Cure. If Tenant defaults in the performance of any of its obligations under this Lease,
Landlord may (but shall not be obligated to), without waiving such default, perform the same for the account and at the expense of Tenant. Tenant shall pay Landlord all costs of such performance promptly upon receipt of a bill therefor. 

 
 20.3 DAMAGES. Should Landlord elect to terminate this
Lease under the provisions of § 20.2 (i) above, Landlord may recover as damages from Tenant the following: 
  

	 	(a)	Past Rent: The worth at the time of the award of any unpaid Rent which had been earned at the time of termination; plus 

  

	 	(b)	Rent Prior to Award: The worth at the time of the award of the amount by which the unpaid Rent which would have been earned after termination until the time of award
exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 

  

	 	(c)	Rent After Award: The worth at the time of the award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of
the rental loss that Tenant proves could have been reasonably avoided; plus 

  

	 	(d)	Proximately Caused Damages: Any other amount necessary to compensate Landlord for all detriment proximately caused by Tenant’s failure to perform its obligations
under this Lease or which in the ordinary course of things would be likely to result therefrom, including, but not limited to, any costs or expenses (including attorneys’ fees), incurred by Landlord in (i) retaking possession of the Premises;
(ii) maintaining the Premises after Tenant’s default; (iii) preparing the Premises for reletting to a new tenant, including any repairs or alterations; and (iv) reletting the Premises, including brokers’ commissions.

  
 “The worth at the time of the award” as used in
subsections (a) and (b) above is to be computed by allowing interest at the rate of ten percent (10%) per annum or, if different, the legal rate then applicable in California. “The worth at the time of the award” as used in subsection (c)
above is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank situated nearest to the Premises at the time of the award plus one percent (1%). 
  
 20.4     LANDLORD’S DEFAULT. If Landlord fails
to perform any covenant, condition, or agreement contained in this Lease within thirty (30) days after receipt of written notice from Tenant specifying a default and the relevant Lease provision, or if Landlord fails within that thirty-day period
after notice to 
  

 40 

 commence to cure any such default which cannot reasonably be cured within thirty (3o) days, then, subject to § 21.1
below, Landlord shall be liable to Tenant for any damages sustained by Tenant as a result of Landlord’s breach. Tenant shall not have the right to terminate this Lease or to withhold, reduce, or offset any amount against any payments of Rent or
any other charges due and payable under this Lease, except to the extent that a specific Lease provision permits such termination or withholding, reduction, or offset of Rent. 
  
 20.5 HOLDER’S RIGHT TO CURE. Tenant
shall give any Holder a copy, by registered mail, of any notice of default served upon Landlord, provided that Tenant previously has been notified in writing of the address of such Holder. If Landlord fails to cure such default within the time
provided in this Lease, any such Holder shall have an additional forty-five (45) days within which to cure such default by Landlord or, if such default cannot reasonably be cured within that time, such additional time as may be necessary, provided
that within such forty-five (45) day period the Holder has commenced and is pursuing the remedies necessary to cure such default (including commencement of foreclosure proceedings, if necessary to effect such cure), in which event this Lease shall
not be terminated while such remedies are being so pursued. 
  
 20.6
SURVIVAL OF REMEDIES. The remedies permitted under this Article 20, the parties’ indemnities under §§ 14.4.3, 14.4.4, and 14.4.5, and § 29.5 below shall survive the
termination of this Lease. 
  
 21 LIMITATIONS ON LANDLORD’S
LIABILITY 
  
 21.1 PERSONAL
LIABILITY. The liability of Landlord to Tenant for any default by Landlord under this Lease or arising in connection herewith or with Landlord’s operation, management, leasing, repair, renovation, alteration,
or any other matter relating to the Property or the Premises shall be limited to the interest of Landlord in the Property (and the rental proceeds thereof). Under no circumstances shall Landlord ever be liable for consequential or punitive damages,
including damages for lost profits or for business interruption. Tenant agrees to look solely to Landlord’s interest in the Property (and the rental proceeds thereof) for the recovery of any judgement against Landlord, and Landlord shall not be
personally liable for any such judgement or deficiency after execution thereon. The limitations of liability contained in this Article 21 shall apply equally and inure to the benefit of Landlord’s present and future partners, beneficiaries,
officers, directors, trustees, shareholders, agents, and employees, and their respective partners, heirs, successors, and assigns. Under no circumstances shall any present or future general or limited partner of Landlord (if Landlord is a
partnership), or trustee or beneficiary (if Landlord or any partner of Landlord is a trust) or corporate officer, director, or shareholder, (if Landlord or any partner of Landlord is a corporation or company) or member (if Landlord is a limited
liability company) have any liability for the performance of Landlord’s obligations under this Lease. 
  
 21.2 LIABILITY UPON TRANSFER. The term Landlord as used in this Lease, so far as covenants or obligations on the part of the Landlord are
concerned, shall be limited to mean and include only the owner or owners, at the time in question, of the fee title to, or a lessee’s interest in a ground lease or master lease of the Property. In the event of any transfer, assignment, or other
conveyance or transfer of any such title or interest, Landlord herein named (and in ease of subsequent transfers or conveyances, the current grantor) shall be automatically freed and relieved from and after the date of such transfer, assignment, or
conveyance of all liability with respect to the performance of any covenants or obligations on the part of Landlord contained in this Lease thereafter to be performed; and, without further agreement, the transferee of such title or interest shall be
deemed to have assumed and agreed to observe and perform any and all obligations of Landlord hereunder, during its ownership of the Premises. Landlord may transfer its interest in the Premises without the consent of Tenant, and such transfer or
subsequent transfer shall not be deemed a violation on Landlord’s part of any of the terms and conditions of this Lease. 
  

 41 

 22 ESTOPPEL CERTIFICATES 
  
 22.1 REQUEST AND DELIVERY. Within ten (10) days following any written
request Landlord may make from time to time, Tenant without any charge therefor, shall execute, acknowledge, and deliver a statement certifying the following: (a) the Commencement Date of this Lease; (b) the fact that this Lease is unmodified and in
full force and effect or, if there have been modifications hereto, that this Lease is in full force and effect, as modified, and stating the date and nature of such modifications; (c) the date to which the Rent and other sums payable under this
Lease have been paid; (d) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in the statement; and (e) such other matters as may be reasonably requested by Landlord. Landlord and Tenant
intend that any statement delivered pursuant to this Article 22 may be relied upon by any Holder, Lessor, beneficiary, purchaser, or prospective purchaser of the Building, the Complex, or any interest therein. Tenant’s failure to deliver any
such statement within the specified ten-day period shall constitute a material default hereunder, and Tenant shall indemnify, defend, protect, and hold Landlord harmless from and against any and all Claims which Landlord may sustain or incur as a
result of or in connection with Tenant’s failure or delay in delivering such statement. 
  
 22.2 ELECTION TO SELL BUILDING. If Landlord elects to sell the Building or to obtain loans secured by a lien on the Building, Tenant,
promptly after demand, shall include with the estoppel certificate(s) provided to any prospective purchaser or lender as required under this Article 22 any financial statements of Tenant reasonably required by the purchaser or lender. The financial
statements so provided shall be kept confidential as to any parties other than the purchaser or lender. 
  
 23 NOTICES 
  
 23.1
MANNER OF DELIVERY. Any notice required or permitted under this Lease shall be in writing and shall be delivered in at least one of the following ways: (a) personally or by private
hand-delivery messenger service; (b) by depositing the same in the United States mail, postage prepaid, registered or certified, return receipt requested; or (c) by depositing such notice, postage prepaid, with Federal Express or another
nationally-recognized private overnight delivery service. Each such notice shall be addressed to the intended recipient at such party’s address set forth as follows, or at such other address as such party has theretofore specified by written
notice delivered in accordance with this § 23.1: 
  
 if to
Landlord: 
  
 KASHIWA FUDOSAN AMERICA, INC. 

c/o Cushman & Wakefield of California, Inc. 
 Attn: Property Manager 
 400 Oyster Point Boulevard, Suite 117 
 South San Francisco, CA 94080 
  
 copy to: 
  
 LaSalle
Investment Management, Agent 
 Attn: Oyster Point Asset Manager 
 770 “L” Street, Suite 1200 
 Sacramento, CA 95814 
  
 if to Tenant: 
  
 SIRF TECHNOLOGY 
 Attn: General Manager 
 395 Oyster Point Boulevard, Suite 317 
 South San Francisco, CA 94080 
  

 42 

 23.2 REQUIRED CONTENTS. Every notice (other than the giving or
withholding of consent or approval under the provisions of the Lease) given to a party shall state the section of the Lease pursuant to which the notice is given; the period of time within which the recipient of the notice must respond (or, if no
response is required, a statement to that effect); and if applicable, that the failure to object to the notice within the stated time period will be deemed to be the equivalent of the recipient’s approval, consent to, or satisfaction with the
subject matter of the notice. 
  
 23.3 PRESUMPTION
OF RECEIPT. Any notice delivered personally or by private messenger service shall be deemed delivered on the next day following the deposit of such notice at the recipient’s address. Any notice
delivered by Federal Express or another nationally-recognized private overnight delivery service shall be deemed delivered on the earlier of (y) the second day following deposit thereof with the carrier or (z) the delivery date shown on the
carrier’s record of delivery. Any notice delivered by mail in the manner specified in § 23.1 shall be deemed delivered on the earlier of (a) the third day following deposit thereof in the United States Mail or (b) the delivery date shown
on the return receipt prepared in connection therewith. Refusal by Tenant or Landlord to accept either certified or registered mail shall constitute a waiver of such notice by the respective party. 
  
 24 BROKERS 
  
 24.1 TENANT’S
REPRESENTATION. Tenant represents and warrants to Landlord that Tenant has dealt with no broker in connection with this Lease other than CPS Company and Cushman & Wakefield of California, Inc. Tenant
shall be responsible for all foreseeable consequences of damages (including attorneys’ fees and costs) resulting from any claims that may be asserted against Landlord by any other broker, finder, or other person with whom Tenant has or
purportedly has dealt in connection with this Lease, and Tenant agrees to indemnify, defend, protect, and hold Landlord harmless in connection with any such Claims which may be asserted. 
  
 25 RIGHTS RESERVED TO LANDLORD 
  
 25.1 ACCESS TO PROPERTY. All of the Property except the inside surfaces
of all walls, windows, and doors bounding the Premises (including exterior Building walls, core corridor walls and doors, and any core corridor entrance) and any space in or adjacent to the Premises used for shafts, stacks, pipes, conduits, fan
rooms, ducts, electric, or other utilities, sinks or other Building facilities, and the use thereof, as well as access thereto through the Premises for the purpose of operation, maintenance, decoration, and repair, are reserved to Landlord. Tenant
shall permit Landlord to install, use, replace, and maintain pipes, ducts, and conduits within the demising walls, bearing columns, and ceilings of the Premises. 
  
 25.2 CONTROL OF PROPERTY. Except to the extent expressly limited herein,
Landlord reserves full rights to control the Property (which rights may be exercised without subjecting Landlord to claims for constructive eviction, abatement of Rent, damages, or other claims of any kind), including more particularly the following
rights: 
  

	 	(a)	Name, Address, Access. To change the name or street address of the Property, install and maintain signs on the exterior and interior of the Property; retain at all times, and
use in appropriate instances, keys to all doors within and into the Premises; grant to any Person the right to conduct any business or render any service at the Property, whether or not it is the same or similar to the use permitted Tenant by this
Lease; and have access for Landlord and other tenants of the Property to any mail chutes located on the Premises according to the rules of the United States Postal Service. 

  

	 	(b)	Entry Into Premises. To enter the Premises at reasonable hours for reasonable purposes, including inspection and supplying cleaning service or other services to

  

 43 

 be provided Tenant hereunder, to show the Premises to current and prospective lenders, ground lessors,
insurers, and prospective purchasers, tenants and brokers, at reasonable hours; and if Tenant shall abandon the Premises at any time, or shall vacate the same during the last three (3) months of the Term, to decorate, remodel, repair, or alter the
Premises. 
  

	 	(c)	Safety Measures. To limit or prevent access to the Property, shut down elevator service, activate elevator emergency controls, or otherwise take such action or preventative
measures deemed necessary by Landlord for the safety of tenants or other occupants of the Property or the protection of the Property and other property located thereon or therein, in case of fire, invasion, insurrection, riot, civil disorder, public
excitement or other dangerous condition, or threat thereof. 

  

	 	(d)	Improvements. To decorate and to make alterations, additions and improvements, structural or otherwise, in or to the Property or any part thereof, and any adjacent building,
structure, parking facility, land, street or alley (including changes and reductions in corridors, lobbies, parking facilities and other public areas and the installation of kiosks, planters, sculptures, displays, escalators, mezzanines, and other
structures, facilities, amenities and features therein, and changes for the purpose of connection with or entrance into or use of the Property in conjunction with any adjoining or adjacent building or buildings, now existing or hereafter
constructed). In connection with such matters, or with any other repairs, maintenance, improvements or alterations, in or about the Property, Landlord may erect scaffolding and other structures reasonably required, and during such operations may
enter upon the Premises and take into and upon or through the Premises, all materials required to make such repairs, maintenance, alterations or improvements, and may close public entry ways, other public areas, restrooms, stairways or corridors.

  
 25.3 LANDLORD’S
RIGHT TO MAINTAIN. Except as expressly otherwise provided in this Lease, Landlord shall have no liability to Tenant by reason of any inconvenience, annoyance, interruption, or injury to business
arising from Landlord’s making any repairs or changes which Landlord is required or permitted to make by this Lease, by any other lease or agreement affecting the Property, or by Law, in or to any portion of the Property, Complex, or the
Premises, including the Systems and Equipment and appurtenances of the Property or the Premises, provided that Landlord shall use due diligence with respect thereto and shall perform such work, except in case of emergency, at times reasonably
convenient to Tenant and otherwise in such manner as will not materially diminish Tenant’s beneficial enjoyment of the Premises for their intended use. 
  
 25.4 REASONABLE NOTICE. In connection with entering the Premises to exercise any of the foregoing rights, Landlord shall: (a) provide
reasonable advance written or oral notice to Tenant’s on-site manager or other appropriate person (except in emergencies, or for routine cleaning or other routine matters), and (b) take reasonable steps to avoid any unreasonable interference
with Tenant’s business. 
  
 26 BUILDING PLANNING

  
 26.1 RELOCATION RIGHT. In the event
Landlord requires the Premises for use in conjunction with another suite or for other reasons connected with Landlord’s planning program for the Building, upon notifying Tenant in writing, Landlord shall have the right to move Tenant to other
space in the Building or in the Complex, provided such space is not more than ten percent (10%) larger than the Premises. If Landlord elects to move Tenant to such other space, Landlord shall pay for (a) all direct, out-of-pocket, reasonable
expenses of Tenant in moving from the Premises to the new space and (b) the cost of improving the new space so that the level of improvements in the new space is comparable to the level of improvements in the Premises. All the terms and conditions
of the original Lease shall remain in full 
  

 44 

 force and effect, except that (i) a revised Exhibit B shall become a part of this Lease and shall reflect the
location of the new space; and (ii) Tenant agrees to execute promptly upon notice from Landlord an amendment to this Lease amending the Table and corresponding sections of the Lease in order to reflect all correct data for the new space. 

 
 27 HOLDING OVER 
  
 27.1 HOLDOVER. Unless Landlord expressly agrees otherwise in writing,
Tenant shall pay Landlord one hundred fifty percent (150%) of the amount of Rent then applicable prorated on per diem basis for each day Tenant shall retain possession of the Premises or any part thereof after expiration of the Term or earlier
termination of this Lease, together with all damages sustained by Landlord on account thereof. The foregoing provisions shall not serve as permission for Tenant to hold over, nor serve to extend the Term, although Tenant shall remain bound to comply
with all provisions of this Lease until Tenant vacates the Premises and shall be subject to the provisions of § 11.1 above. 
  
 27.2 PERMISSIVE MONTH-TO-MONTH TENANCY. Notwithstanding the foregoing to the contrary,
at any time before or after expiration or earlier termination of the Term of the Lease, Landlord may serve notice advising Tenant of the amount of Rent and other terms required, should Tenant desire to enter a month-to-month tenancy. If Tenant shall
hold over more than one full calendar month after such notice, Tenant shall thereafter be deemed a month-to-month tenant, on the terms and provisions of this Lease then in effect, as modified by Landlord’s notice, except that Tenant shall not
be entitled to any renewal or expansion rights contained in this Lease or any amendments hereto. 
  
 28 PARKING 
  
 28.1
AVAILABLE PARKING. Subject to the terms and conditions contained in the balance of this Article 28, Landlord agrees to make available to Tenant during the Term of this Lease and any renewal term up to a maximum of
sixteen (16) parking spaces on a non-exclusive basis in the area(s) designated by Landlord for parking in the Building’s parking lots and/or facility (the “Parking Facility”). Said parking spaces shall be in locations designated by
Landlord, and parking shall be on a first-come-first-served, unassigned, nonreserved basis. Landlord reserves the right to designate different locations or different parking areas for Tenant’s use without any liability to Tenant and Tenant
agrees that any change shall not give rise to any claims or offset against Landlord hereunder. Tenant shall abide by any and all parking regulations and rules established from time to time by Landlord or Landlord’s parking operator. Landlord
reserves the right in its sole and absolute discretion to restrict or prohibit the use of the Parking Facility for any vehicles other than passenger automobiles, such as full-sized vans or trucks. Tenant shall not permit any vehicles belonging to
Tenant or Tenant’s employees, agents, customers, contractors, or invitees to be loaded, unloaded, or parked in areas other than those designated by Landlord for such activities. A failure to comply with the foregoing provisions shall afford
Landlord the right without notice to remove any vehicles involved and to charge the cost to Tenant, which cost shall be immediately due and payable upon demand by Landlord. 
  
 28.2 USE AT TENANT’S OWN RISK.
Landlord shall have no obligation to monitor the use of the Parking Facility. Tenant’s and its employees’ use of the Parking Facility shall be at the sole risk of Tenant and its employees. Unless caused by the willful harmful act of
Landlord, Landlord shall have no responsibility or liability for any injury or damage to any person or property by or as a result of the use of the Parking Facility (or substitute parking) by Tenant and its employees, whether by theft, collision,
criminal activity, or otherwise, and Tenant hereby assumes, for itself and its employees, all risks associated with any such occurrences in or about the Parking Facility. 
  

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 29 MISCELLANEOUS PROVISIONS. 
  
 29.1 GENERAL DEFINITIONS. The definitions which follow shall apply generally to the provisions of this
Lease. 
  

	 	(a)	The term business days means Monday through Friday inclusive, excluding Holidays as defined in § 8.1.1 above. Throughout this Lease, wherever days is used
the term shall refer to calendar days. Wherever the term business days is used the term shall refer to business days as defined hereunder. 

  

	 	(b)	The term mortgage shall include any mortgage or deed of trust, and the term mortgagee shall include a trustee. 

  

	 	(c)	The terms include, including, and such as shall each be construed as if followed by the phrase “without limitation.” The rule of eiusdem
generis shall not be applicable to limit a general statement following or referrable to an enumeration of specific matters to matters similar to the matters specifically mentioned. 

  

	 	(d)	The term obligations under this Lease and words of like import shall mean the covenants to pay Rent and Additional Rent under this Lease and all of the other covenants
and conditions contained in this Lease. Any provision in this Lease that one party or the other or both shall do or not do or shall cause or permit or not cause or permit a particular act, condition, or circumstance shall be deemed to mean that such
party so covenants or both parties so covenant, as the case may be. 

  

	 	(e)	The term Tenant’s obligations hereunder and words of like import and the term Landlord’s obligations hereunder and words of like import shall
mean the obligations under this Lease which are to be performed or observed by Tenant, or by Landlord, as the case may be. Reference to performance of either party’s obligations under this Lease shall be construed as
“performance and observance.” 

  

	 	(f)	Reference to Tenant being or not being in default hereunder or words like import shall mean that Tenant is in default in the performance of one or more of
Tenant’s obligations hereunder, or that Tenant is not in default in the performance of any of Tenant’s obligations hereunder, or that a condition of the character described in § 20.1 above has occurred and continues or has not
occurred or does not continue, as the case may be. 

  

	 	(g)	References to Landlord as having no liability to Tenant or being without liability to Tenant shall mean that Tenant is not entitled to terminate this
Lease or to claim actual or constructive eviction, partial or total, or to receive any credit, allowance, setoff, abatement, or diminution of Rent, or to be relieved in any manner of any of its other obligations hereunder, or to be compensated for
loss or injury suffered or to enforce any other kind of liability whatsoever against Landlord under or with respect to this Lease or with respect to Tenant’s use or occupancy of the Premises. 

  

	 	(h)	The term requirements of insurance bodies and words of like import shall mean rules, regulations, orders, and other requirements of the California Board of Fire
Underwriters and/or the California Fire Insurance Rating Organization and/or any other similar body performing the same or similar functions and having jurisdiction or cognizance of the Property and/or the Premises. 

  

	 	(i)	The term repair shall be deemed to include restoration and replacement as may be necessary to achieve and/or maintain good working order and condition.

  

 46 

	 	(j)	Reference to termination of this Lease includes expiration or earlier termination of the Term of this Lease or cancellation of this Lease pursuant to any of the
provisions of this Lease or to Law. Upon a termination of this Lease, the Term and estate granted by this Lease shall end at noon of the date of termination as if such date were the date of expiration of the Term of this Lease, and neither party
shall have any further obligation or liability to the other after such termination, except as shall be expressly provided for in this Lease and except for any such obligation as by its nature or under the circumstances can only be, or by the
provisions of this Lease may be, performed after such termination; and in any event, unless expressly provided to the contrary in this Lease, any liability for a payment or obligation which shall have accrued to or with respect to any period ending
at the time of termination shall survive the termination of this Lease. 

  

	 	(k)	The term in full force and effect when herein used in reference to this Lease as a condition to the existence or exercise of a right on the part of Tenant shall be
construed in each instance as including the further condition that at the time in question no default on the part of Tenant exists, and no event has occurred which has continued to exist for such period of time (after the notice, if any, required by
this Lease), as would entitle Landlord to terminate this Lease or to dispossess Tenant. 

  

	 	(1)	The term Tenant shall mean Tenant herein named or any assignee, heir, distributee, executor, administrator, legal representative, or other successor in interest
(immediate or remote) of Tenant herein named, while such Tenant or such assignee or other successor in interest, as the case may be, is in possession of the Premises as owner of the Tenant’s estate and interest granted by this Lease and also,
if Tenant is not a single individual or a corporation, all of the persons, firms, and corporations then comprising Tenant; and their liability hereunder shall be joint and several. 

  
 29.2 LIGHT AND AIR. No diminution of
light, air or view by any structure which may hereafter be erected (whether or not by Landlord) shall entitle Tenant to any reduction of Rent under this Lease, result in any liability of Landlord to Tenant, or in any other way affect this Lease.

  
 29.3 WAIVER OF TERMS. If
either Landlord or Tenant waives the performance of any term, covenant, or condition contained in this Lease, such waiver shall not be deemed to be a waiver of the term, covenant, or condition itself or a waiver of any subsequent breach of the same
or any other term, covenant, or condition contained herein. Furthermore, the acceptance of Rent by Landlord shall not constitute a waiver of any preceding breach by Tenant of any term, covenant, or condition of this Lease, regardless of
Landlord’s knowledge of such preceding breach at the time Landlord accepts such Rent. Failure by Landlord to enforce any of the terms, covenants, or conditions of this Lease for any length of time shall not be deemed to waive or to decrease the
right of Landlord to insist thereafter upon strict performance by Tenant. Waiver by Landlord of any term, covenant, or condition contained in this Lease may only be made by a written document signed by Landlord. 
  
 29.4 FAILURE TO DELIVER
STATEMENTS. Landlord’s failure during the Term of this Lease to prepare and deliver any of the Statements, estimates, notices, or bills contemplated or required under this Lease, or Landlord’s failure to make a demand,
shall not in any way cause Landlord to forfeit or surrender its rights to collect any of the foregoing items of Rent which may have become due during the Term of this Lease. 
  
 29.5 ATTORNEYS FEES. In the event that any action or proceeding (including arbitration) is brought to
enforce or interpret any term, covenant, or condition of this Lease on the part of Landlord or Tenant, the prevailing party in such action or proceeding (whether after trial or upon appeal) shall be entitled to 
  

 47 

 recover from the party not prevailing its expenses therein, including reasonable attorneys’ fees and all allowable
costs as fixed by the court. 
  
 29.6 JURY
TRIAL. Tenant and Landlord each hereby waive their respective rights to a trial by jury under applicable Laws in the event of any litigation or dispute between Landlord and Tenant arising out of or in connection with this Lease
and the parties’ performance thereunder. 
  
 29.7
MERGER. Notwithstanding the acquisition (if same should occur) by the same party of the title and interests of both Landlord and Tenant under this Lease, there shall never be a merger of the estates of Landlord and Tenant under
this Lease, but instead the separate estates, rights, duties, and obligations of Landlord and Tenant, as existing hereunder, shall remain unextinguished and continue, separately, in full force and effect until this Lease expires or otherwise
terminates in accordance with the express provisions herein contained. 
  
 29.8
NO MERGER ON VOLUNTARY SURRENDER. A voluntary or other surrender of this Lease by Tenant or the mutual cancellation of this Lease shall not work a merger and shall, at
the option of Landlord, terminate all or any existing subleases or subtenancies, or may, at the option of Landlord, operate as an assignment to it of any or all such subleases or subtenancies. 
  
 29.9 CONSENT. Notwithstanding anything contained in this Lease to the
contrary, Tenant shall have no claim and hereby waives the right to any claim against Landlord for money damages by reason of any refusal, withholding, or delaying by Landlord of any consent, approval, statement, or satisfaction; and in such event,
Tenant’s only remedies therefor shall be an action for specific performance, injunction, or declaratory judgement to enforce any right to such consent, approval, statement, or satisfaction. 
  
 29.10 COUNTERPARTS. This Lease may be executed in multiple
counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 
  
 29.11 FINANCIAL STATEMENTS. In order to induce Landlord to enter into this Lease, Tenant agrees that it shall promptly furnish
Landlord, from time to time, upon Landlord’s written request, with financial statements reflecting Tenant’s current financial condition. Tenant represents and warrants that all financial statements, records, and information furnished by
Tenant to Landlord in connection with this Lease are and shall be true, correct, and complete in all respects. 
  
 29.12 GENDER AND NUMBER. Words used in neuter gender include the feminine and masculine, where applicable, and words used in the singular or plural shall include the
opposite number if appropriate. 
  
 29.13 JOINT
AND SEVERAL OBLIGATION. If more than one person executes this Lease as Tenant, each of them is jointly and severally liable for the keeping, observing, and performing of all of the terms, covenants,
conditions, provisions, and agreements of this Lease to be kept, observed, and performed by Tenant. The term Tenant as used in this Lease shall mean and include each of such signatories jointly and severally. The act of or notice from, or
notice or refund to, or the signature of, any one or more of such signatories with respect to the tenancy or this Lease, including any renewal, extension, expiration, termination, or modification of this Lease, shall be binding upon each and all of
the persons executing this Lease as Tenant with the same force and effect as if each and all of them had so acted or so given or received such notice or refund or so signed. 
  
 29.14 HEADINGS AD SECTION NUMBERS. The headings and titles of the
articles and sections of this Lease are used for convenience only and shall have no effect upon the construction or interpretation of this Lease. Wherever a reference is made in this Lease to a particular article or section, such reference shall be
deemed to include all subsections following such section reference, unless the contrary is expressly provided in connection with such reference. All references in this Lease to numbered articles, 
  

 48 

 numbered sections, and lettered exhibits are references to articles and sections of this Lease and exhibits annexed to
(and thereby made part of) this Lease, as the case may be, unless expressly otherwise designated in the context. 
  
 29.15 TIME. Time is of the essence of this Lease and all of its provisions. 
  
 29.16 APPLICABLE LAW. This Lease shall in all respects be governed by and interpreted in accordance
with the laws of the State of California. 
  
 29.17
SEVERABILITY. If any provision of this Lease or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Lease and the application of such provision to other
persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
  
 29.18 SIGNS. Tenant shall not place or permit to be placed in or upon the Premises where visible from outside the Premises or any part of the
Building, any signs, notices, drapes, shutters, blinds or window coatings, or displays of any type without the prior written consent of Landlord. Landlord shall consent to the location at the cost of Tenant of a building standard sign on or near the
entrance of the Premises and shall include Tenant in the Building and Complex directories located in the Building. Landlord reserves the right in Landlord’s sole discretion to place and locate on the roof and exterior of the Building and
Complex and in any area of the Building and the Complex not leased to Tenant, such signs, notices, displays and similar items as Landlord deems appropriate in the proper operation of the Building and the Complex. 
  
 29.19 EXECUTION BY LANDLORD. The
submission of this document for examination and negotiation does not constitute an offer to lease, or a reservation of, or option for, the Premises. This document becomes effective and binding only upon execution and delivery hereof by Tenant and by
Landlord. No act or omission of any employee or agent of Landlord or of Landlord’s broker shall alter, change or modify any of the provisions hereof. 
  
 29.20 USE OF NAME. Tenant shall not use the name of the Building or Complex for any purpose other than the address of
the business to be conducted by Tenant in the Premises. Tenant shall not use any picture of the Building or Complex in its advertising, stationery or in any other manner so as to imply that the entire Building or Complex is leased by Tenant.
Landlord expressly reserves the right at any time to change the name or street address of the Building and/or Complex without in any manner being liable to Tenant therefor. 
  
 29.21 NONRECORDABILITY OF LEASE. Tenant agrees that in no event shall this Lease or a
memorandum hereof be recorded without Landlord’s express prior written consent, which consent Landlord may withhold in its sole discretion. 
  
 29.22 CONSTRUCTION. All provisions hereof, whether covenants or conditions, shall be deemed to be both covenants and conditions. The definitions
contained in this Lease, shall be used to interpret the Lease. All rights and remedies of Landlord and Tenant shall, except as otherwise expressly provided, be cumulative and non-exclusive of any other remedy at law or in equity. 
  
 29.23 FORCE MAJEURE DELAYS. This Lease
and the obligations of Tenant hereunder shall not be affected or impaired because Landlord is unable to fulfill any of its obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of force majeure, strike,
labor troubles, acts of God, acts of government, unavailability of materials or labor, or any other cause beyond the reasonable control of Landlord (collectively “Force Majeure Delays”). 
  

 49 

 29.24 AUTHORITY. If Tenant is a corporation, each individual executing this Lease on behalf of
Tenant represents and warrants that Tenant is qualified to do business in California and that he is duly authorized to execute and deliver this Lease on behalf of Tenant and shall deliver appropriate certification to that effect if requested. If
Tenant is a limited liability company, partnership, joint venture, or other unincorporated association, each individual executing this Lease on behalf of Tenant represents and warrants that he is duly authorized to execute and deliver this Lease on
behalf of Tenant and that this Lease is binding on Tenant. Furthermore, Tenant agrees that the execution of any written consent hereunder, or any written modification or termination of this Lease, by any general partner or member of Tenant or any
other authorized agent of Tenant, shall be binding on Tenant. 
  
 29.25
NONDISCLOSURE. Tenant agrees that it shall not disclose any of the matters set forth in this Lease or disseminate or distribute any information concerning the terms, covenants, or conditions thereof to any person, firm, or entity,
other than a prospective assignee or subtenant of the Premises, without first obtaining the express written approval of Landlord; provided, however, that Tenant may disclose the contents of this Lease to any director, officer, or employee of Tenant,
to Tenant’s lawyers, accountants, or other third party consultants or professionals, to any lenders, investors, or others to whom Tenant provides financial statements, or in response to any legally effective demand for disclosure pursuant to
court order or from any other properly constituted legal authority. 
  
 29.26
QUIET ENJOYMENT. So long as Tenant is not in default under this Lease, Tenant shall have quiet enjoyment of the Premises for the Term, subject to all the terms and conditions of this Lease and all liens and
encumbrances prior to this Lease. 
  
 29.27 EXHIBITS
AND ATTACHMENTS. All exhibits and attachments referred to in the body of this Lease are deemed attached hereto and incorporated herein by reference. The parties have attached the following exhibits to the Lease
prior to execution: 
  

			
	 Exhibit A
	  	Site Plan
	 Exhibit B
	  	Floor Plan of Premises
	 Exhibit C
	  	Rules and Regulations
	 Exhibit D
	  	Athletic Facility Use Agreement
	 Exhibit E
	  	Commencement Date Agreement
	 Exhibit F
	  	Furniture Inventory List

  
 29.28 ENTIRE
AGREEMENT. This Lease, together with its exhibits, contains all the agreements of the parties hereto and supersedes any previous negotiations. There have been no representations made by the Landlord or understandings made between
the parties other than those set forth in this Lease and its exhibits. This Lease may not be modified except by a written instrument duly executed by the parties hereto. 
  

 50 

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

					
	 Landlord:
	  	 Kashiwa Fudosan America, Inc., a California corporation

			
	 	  	By:	  	 /s/ Haru Takehana
  

	 	  	 	  	Haru Takehana, Director
		
	 Tenant:
	  	 SiRF Technology, Inc., a Delaware corporation

			
	 	  	By:	  	 /s/ Walter Amaral
  

			
	 	  	 	  	 Walter Amaral

	 	  	 	  	                                      
          [name typed]
			
	 	  	Its:	  	 CFO and Sr. VP Finance
  

  
  

 51 

 [GRAPHIC OMITTED] 
  

 52 

 Exhibit A – Site Plan 
  
 [GRAPHIC OMITTED] 
  

 53 

 [GRAPHIC OMITTED] 
  

 

 54 

 Exhibit C 
  

RULES AND REGULATIONS 
  
 OYSTER POINT MARINA PLAZA 
  
 RULES AND REGULATIONS 
  

	1.	The sidewalks, doorways, halls, stairways, vestibules and other similar areas shall not be obstructed by Tenant or any employee or invitee of Tenant, or used by Tenant or any
employee or invitee of Tenant, for any purpose other than ingress to and egress from the Premises and going from one part of the Building to another part. 

  

	2.	Plumbing fixtures shall be used only for their designated purpose, and no foreign substances of any kind shall be thrown therein. Damage to any such fixture resulting from misuse by
Tenant or any employee or invltee of Tenant shall be repaired at the sole cost and expense of Tenant. 

  

	3.	Tenant shall not install any radio or television antenna, loudspeaker, or other device on the roof or exterior walls of the Building. No TV or radio or recorder shall be played in
such a manner as to cause a nuisance to any other tenant. 

  

	4.	There shall not be used in any space, or in the public halls of the Building, either by Tenant or others, any hand trucks except those equipped with rubber tires and side guards or
such other material handling equipment as Landlord may approve. No other vehicles of any kind shall be brought by any tenant into the Building or kept in or about its premises. 

  

	5.	Tenant shall store all its trash and garbage within its Premises. No material shall be placed in the hallways or in the trash boxes or receptacles if such material is of such nature
that it may not be disposed of in the ordinary and customary manner of removing and disposing of office building trash and garbage in the City of South San Francisco without being in violation of any law or ordinance governing such disposal. All
garbage and refuse disposal shall be made only through entryways and elevators provided for such purposes and at such times as Landlord shall designate. 

  

	6.	The requirements of tenants will be attended to only upon application in writing at the office of the Building. Employees of Landlord shall not perform any work or do anything
outside of their regular duties unless under special instructions from Landlord. 

  

	7.	These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the agreements, covenants, conditions, and provisions
of any lease of premises in the Building. 

  

	8.	Tenant shall not occupy the Building or permit any portion of the Building to be occupied for the manufacture or direct sale of liquor, narcotics, or tobacco in any form, or as a
medical office, barber shop, manicure shop, music or dance studio, or employment agency. Tenant shall not conduct in or about the Building any auction, public or private, without the prior written approval Landlord. 

  

	9.	Tenant shall not use in the Building any machines, other than standard office machines such as typewriters, calculators, personal computers, photocopiers, and similar machines,
without the prior written approval of Landlord. All office equipment and any other device of any electrical or mechanical nature shall be placed by Tenant in the Premises in settings approved by Landlord, so as to absorb or prevent any vibration,
noise, or annoyance. Tenant shall not cause improper noises, vibrations, or odors within the Building. 

  

 55 

 written consent of Landlord. 
  

	11.	Tenant shall not mark, paint, drill into, cut, string wires within, or in any way deface any part of the Building, without the prior written consent of Landlord and as Landlord may
direct. Should Landlord grant approval, Tenant agrees to assume full responsibility and warrants that Tenant’s contractor will strictly abide by Landlord’s guidelines for work contracted directly by Tenant. Upon removal of any wall
decorations or installations or floor coverings by Tenant, any damage to the walls or floors shall be repaired by Tenant at Tenant’s sole cost and expense. This rule shall apply to all work performed in tie Building, electrical devices, and
attachments, and installations of any nature affecting floors, walls, woodwork, trim, windows, ceilings, equipment, or any other portion of the Building. Plans and specifications for such work, prepared at Tenant’s sole cost and expense, shall
be submitted to Landlord and shall be subject to Landlord’s prior written approval in each instance before the commencement of work. All installations, alterations, and additions shall be constructed by Tenant in a good and workmanlike manner,
and only good grades of materials shall be used in connection therewith. 

  

	12.	Tenant shall not place objects on window sills or otherwise obstruct the exterior wall window covering. 

  

	13.	Tenant shall keep all doors opening to the exterior of the Building, all fire doors, and all smoke doors closed at all times. 

  

	14.	If Tenant uses the Premises after regular business hours or on non-business days, Tenant shall lock any entrance doors to the Building or to the Premises used by Tenant immediately
after using such doors. 

  

	15.	Tenant shall not use any portion of the Premises for lodging. 

  

	16.	Landlord reserves the right to exclude or expel from the Building any person who, in the judgement of Landlord, is intoxicated or under the influence of liquor or drugs, or who
shall in any manner do any act in violation of any of the rules and regulations of the Building. 

  

	17.	Tenant shall not park or attach any bicycle or motor driven cycle on or to any part of the Premises or Building. 

  

	18.	In all carpeted areas where desks and chairs are utilized, Landlord shall require Tenant, at Tenant’s sole cost and expense, to place mats under each and every chair in order
to protect said carpeting from unnecessary wear and tear. 

  

	19.	Signs, advertisements, graphics, or notices visible in or from public corridors shall be subject to Landlord’s prior written approval. Nails, screws, and other attachments to
the Building require prior written consent from Landlord. 

  

	20.	All contractors and technicians rendering any installation service to Tenant shall be referred to Landlord for approval and supervision prior to performing services. This applies to
all work performed in the Building, including installation of telephone and communications lines and equipment, electrical devices, and all installations affecting floors, walls, woodwork, windows, ceilings, and any other physical portions of the
Building. 

  

	21.	Movement in or out of the Building of furniture, office equipment, or other bulky material which requires the use of elevators, stairways, or Building entrance and lobby shall be
restricted to hours established by Landlord. All such movement shall be under Landlord’s supervision, and the use of an elevator for such movements shall be restricted to the Building’s freight elevators. Arrangements with Landlord should
be made regarding the 

  

 56 

	22.	Landlord reserves the right to restrict access to all telephone closets, cabling, conduits, and risers in the Property. Tenant shall not have access for any reason to any of the
aforementioned areas of the Property without the prior written permission of Landlord and the supervision of Landlord’s Building Engineer. The means by which telephone, telegraph, and similar wires are to be introduced to the Premises and the
location of telephones, call boxes, and other office equipment affixed to the Premises, shall be subject to the prior written approval of Landlord. 

  

	23.	Any damage done to the Building by the movement of Tenant’s property, or done by Tenant’s property while in the Building, shall be repaired at Tenant’s sole cost and
expense. 

  

	24.	Corridor doors, when not in use, shall be kept closed. 

  

	25.	Tenant shall cooperate with Landlord in maintaining the Premises. Tenant shall not employ any person for the purpose of such cleaning other than the Building’s cleaning and
maintenance personnel. 

  

	26.	To insure orderly operation of the Building, no deliveries of water, soft drinks, newspapers, or other such items to any Premises shall be made except by persons appointed or
approved in advance by Landlord. 

  

	27.	Nothing shall be swept or thrown into the corridors, halls elevator shafts, or stairways. No birds, fish, or animals of any kind shall be brought into or kept in, on, or about the
Premises. 

  

	28.	No machinery of any kind, except for standard electronic office machinery such as personal computers, typewriters, and photocopiers, shall be operated by Tenant in the Premises
without the prior written approval of Landlord. 

  

	29.	No cooking shall be done in the Premises, except that the use by Tenant of Underwriter’s Laboratory approved microwave ovens and equipment for brewing coffee, tea, or other hot
beverages shall be permitted, provided such use is in accordance with all applicable codes, laws, and ordinances. 

  

	30.	Tenant shall not install any food, soft drink, or other vending machine within the Premises. 

  

	31.	Tenant shall not use or keep on its Premises any kerosene, gasoline, or inflammable or combustible fluid or material other than limited quantities reasonably necessary for the
operation and maintenance of office equipment. Tenant shall not use or keep any noxious gas or substances in the Premises or permit the Premises to be used in a manner offensive or objectionable to Landlord or other occupants of the Building by
reason of noise, odors, or vibrations, or interfere in any way with other tenants or those having business therein. 

  

	32.	Tenant shall not tamper with or attempt to adjust temperature control thermostats in the Premises. Landlord shall make adjustments in thermostats on call from Tenant.

  

	33.	Tenant shall comply with air measures instituted by Landlord, in its sole and absolute discretion, for the security of the Premises, Property, and Complex, and all personnel using
the same, including the use of service passes issued by Landlord for after-hours movement of office equipment or packages and signing a security register in Building lobby after hours. Nothing herein shall be construed to impose any obligation or
requirement that Landlord provide any security services in the Premises, Property, or Complex, or any particular level or type of security services. 

  

 57 

 Premises. At expiration or earlier termination of this Lease, Tenant shall surrender to Landlord all keys
to the Premises and give to Landlord the combination of all locks for safes and vault doors, if any, in the Premises. 
  

	35.	Landlord retains the right, without notice or liability to any Tenant, to change the name and street address of the Building. 

  

	36.	Canvassing, peddling, soliciting, and distribution of handbills in the Building are prohibited, and Tenant shall cooperate to prevent these activities. 

  

	37.	The Building hours of operation are (excluding Holidays): 

  
 8:00 a.m. to 6:00 p.m. Monday thru Friday 
 9:00 a.m. to 1:00 p.m. Saturday 
  

	38.	Landlord reserves the right to rescind any of these rules and regulations and to make future rules and regulations required for the safety, protection and maintenance of the
Building, the operation and preservation of good order thereof, and the protection and comfort of the tenants and their employees and visitors. Such rules and regulations and all modifications thereto shall, upon written notice by Landlord to
Tenant, be binding as if originally included herein. 

  
 ***** 
  

 58 

 Exhibit D 
  

ATHLETIC FACILITY USE AGREEMENT 
  
 Exhibit D 
  
 OYSTER POINT MARINA PLAZA 
  
 ATHLETIC FACILITY USE AGREEMENT AND RELEASE OF LIABILITY 
  
 THIS IS A LEGALLY BINDING AGREEMENT. READ IT CAREFULLY. 
  
 I,
                                , hereby acknowledge that my use of the exercise
facility (the “Facility”) at 400 Oyster Point Boulevard, owned by KASHIWA FUDOSAN AMERICA, INC. (“Landlord”), as well as any activities in which I may engage in conjunction with my use of the Facility and its equipment, is
entirely voluntary. 
  
 I AM AWARE THAT PARTICIPATING IN ATHLETIC
ACTIVITIES AND THE USE OF THE EXERCISE FACILITY AND/OR ITS EQUIPMENT MAY BE HAZARDOUS AND THAT IT IS NOT POSSIBLE FOR LANDLORD TO GUARANTEE THE SAFETY OR CONDITION OF THE EQUIPMENT OR THAT OTHER PATRONS USING THE FACILITY WILL COMPLY WITH ALL
ESTABLISHED RULES AND REGULATIONS. I AM VOLUNTARILY PARTICIPATING IN THESE ATHLETIC ACTIVITIES AND UTILIZING THE FACILITY AND ITS EQUIPMENT WITH FULL KNOWLEDGE OF THE DANGER INVOLVED AND HEREBY AGREE TO ACCEPT AND ASSUME ANY AND ALL RISKS OF
PROPERTY LOSS, PERSONAL INJURY, OR DEATH, WHETHER OR NOT CAUSED BY THE NEGLIGENCE OF LANDLORD, ANY OF LANDLORD’S EMPLOYEES OR AGENTS, OR ANY OTHER PATRON OR GUEST USING THESE FACILITIES AND/OR THE EQUIPMENT THEREON. 
  
 ___________ 
 [initial here] 
  
 In exchange, as lawful consideration for being permitted by Landlord to participate in activities on Landlord’s property and use its exercise Facility and equipment contained therein, I hereby agree that I, my
heirs, next of kin, successors, and assigns will not sue, make a claim against, attach the property of or prosecute Landlord or Landlord’s agents and employees for injury, death, or damage resulting from the negligence or other acts, howsoever
caused, by any of Landlord’s employees, agents, contractors, or patrons as a result of my participation in these activities or use of the exercise Facility and/or the equipment therein. In addition, I hereby release and discharge Landlord from
all actions, claims, or demands that I, my heirs, next of kin, successors, or assigns now have or may hereafter have for any loss of property, personal injury, death, or damage resulting from my participation in these activities or use of the
exercise Facilities and/or equipment therein. 
  
 I HAVE CAREFULLY
READ THIS AGREEMENT AND FULLY UNDERSTAND ITS CONTENTS. I AM AWARE THAT THIS IS A RELEASE OF LIABILITY AND A CONTRACT BETWEEN MYSELF AND LANDLORD AND SIGN IT OF MY OWN FREE WILL. 
  

					
	Participant:	  	  

	  	 
	 	  	  

	  	 
	 	  	             [name typed or printed]
	  	 
			
	Company:	  	  

	  	 
	Suite:	  	  

	  	 

  

 59 

 WITNESS 
  
 I certify that the person whose signature appears above acknowledged in my presence that he or she has read and fully understands the meaning and
consequences of the foregoing Agreement and Release of Liability and the he or she signed it in my presence. 
  

							
	Witness:	 	  

	  	 
			
	 	 	  

	  	 
	 	 	[name typed or printed]	  	 
				
	 	 	Date:	 	  

	  	 

  

 60 

 Exhibit E 
  

COMMENCEMENT DATE AGREEMENT 
  
 OYSTER POINT MARINA PLAZA 
  
 LEASE COMMENCEMENT DATE AGREEMENT 
  
 THIS LEASE COMMENCEMENT DATE AGREEMENT (the “Agreement’) is made as of
                        , between KASHIWA FUDOSAN AMERICA, INC., a California corporation (“Landlord”)
and                         , a
                         (“Tenant”). 
  
 Tenant and Landlord aciaiowledge and agree as follows:, 
  

	 	1.	Tenant has received a fully-executed counterpart of the Lease dated as of
                         for premises commonly known as Suite
                         at
                         Oyster Point Boulevard in the Oyster Point Marina Plaza. 

  

	 	2.	The Commencement Date of the Lease for all purposes thereunder is
                         and the Expiration Date is
                        . 

  
 IN WITNESS WHEREOF Landlord and Tenant have executed this Agreement as of the date first-above written. 
  

									
	Landlord:	  	 KASHIWA FUDOSAN AMERICA., INC., a California corporation
	  	 
	 	  	 	  	By:	  	
	  	 
					
	 	  	 	  	Its:	  	
	  	 
			
	Tenant:	  	                                    , a
                                        
                	  	 
					
	 	  	 	  	By:	  	
  

 [name typed]
	  	 
					
	 	  	 	  	Its:	  	
	  	 
					
	 	  	 	  	By:	  	
  

 [name typed]
	  	 
					
	 	  	 	  	Its:	  	
	  	 
					
	 	  	 	  	By:	  	
  

 [name typed]
	  	 
					
	 	  	 	  	Its:	  	
	  	 

  

 61 

 TABLE OF CONTENTS 
  

					
			
	1	  	BASIC LEASE TERMS	  	1
			
	2	  	USE	  	6
			
	3	  	PREPARATION OF THE PREMISES	  	7
			
	4	  	ADJUSTMENTS OF RENT	  	9
			
	5	  	SECURITY DEPOSIT	  	16
			
	6	  	COMPLIANCE WITH LAWS	  	17
			
	7	  	HAZARDOUS MATERIAL	  	17
			
	8	  	SERVICES AND UTILITIES	  	19
			
	9	  	TENANT’S CHANGES	  	23
			
	10	  	TENANT’S PROPERTY	  	25
			
	11	  	CONDITION UPON SURRENDER	  	26
			
	12	  	REPAIRS AND MAINTENANCE	  	26
			
	13	  	RULES AND REGULATIONS	  	27
			
	14	  	INSURANCE AND INDEMNIFICATION	  	27
			
	15	  	DAMAGE OR DESTRUCTION	  	32
			
	16	  	EMINENT DOMAIN	  	33
			
	17	  	ASSIGNMENT AND SUBLETTING	  	34
			
	18	  	SUBORDINATION AND ATTORNMENT	  	39
			
	19	  	FINANCING REQUIREMENTS	  	41
			
	20	  	DEFAULT	  	41
			
	21	  	LIMITATIONS ON LANDLORD’S LIABILITY	  	44
			
	22	  	ESTOPPEL CERTIFICATES	  	44
			
	23	  	NOTICES	  	45
			
	24	  	BROKERS	  	46
			
	25	  	RIGHTS RESERVED TO LANDLORD	  	46
			
	26	  	BUILDING PLANNING	  	47
			
	27	  	HOLDING OVER	  	48
			
	28	  	PARKING	  	48
			
	29	  	MISCELLANEOUS PROVISIONS	  	49

  

 62 

 INDEX OF DEFINED TERMS 
  

			
	 A
	  	 
		
	 Additional Rent
	  	 2, 7, 11, 23, 32, 33, 34, 35, 36, 47

	 Adjustment Period
	  	 7, 8, 9, 11, 12, 13

	 Assumed Base Amount
	  	 12

	 Athletic Facility
	  	 3, 10, 52

		
	 B
	  	 
		
	 Base Expense Year
	  	 7

	 Base Operating Expenses
	  	 7, 12

	 Base Parking Fee
	  	 47

	 Base Real Estate Taxes
	  	 7, 8, 12, 13

	 Base Rent
	  	 1, 2, 7, 12, 14, 19, 30, 31, 33, 34, 36, 38

	 Base Tax Year
	  	 8, 13

	 Base Utilities
	  	 7, 12

	 Building
	  	 1, 3, 4, 5, 8, 9, 10, 12, 17, 18, 19, 20, 21, 23, 25, 27, 29, 31, 33, 34, 35, 36, 37, 43, 44, 45, 46, 51

	 Business Hours
	  	 18

	 Business Personal Property
	  	 26, 27, 28

		
	 C
	  	 
		
	 Claims
	  	 28, 29, 35, 43, 44

	 Code Costs
	  	 15

	 Commencement Date
	  	 1, 2, 7, 10, 15, 19, 39, 42, 46, 52

	 Complex
	  	 1, 2, 3, 4, 5, 8, 10, 13, 23, 29, 31, 33, 34, 37, 39, 43, 45, 51

		
	 E
	  	 
		
	 Event of Default
	  	 39, 40

	 Expiration Date
	  	 1, 2, 11, 15, 27, 24, 35

	 F
	  	 
	 Force Majeure Delays
	  	 51

		
	 H
	  	 
		
	 Hazardous Material
	  	 15, 16, 17

	 Holder
	  	 27, 38, 39, 41, 43

	 Holidays
	  	 18, 47

	 HVAC
	  	 17, 18, 19, 20

		
	 I
	  	 
		
	 Improvements
	  	 6, 23, 24, 31, 45

	 INC
	  	 1, 4, 5, 18, 19, 21, 24, 25, 29, 52

	 IW
	  	 24

		
	 L
	  	 
		
	 Landlord
	  	 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37,
38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52

	 Laws
	  	 5, 10, 15, 16, 18, 19, 22, 24

	 Lease
	  	 1, 2, 3, 4, 5, 6, 7, 8, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39,
40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52

	 Lessor
	  	 27, 38, 43

		
	 M
	  	 
		
	 MPOE
	  	 18, 19

	 MSDS
	  	 16

  

 63 

			
	 O
	  	 
		
	 Occupancy Conditions
	  	 6

	 Operating Expenses
	  	 7, 8, 9, 10, 11, 12, 13, 17, 31

		
	 P
	  	 
		
	 Parking Facility
	  	 46, 47

	 Permitted Occupant
	  	 34, 37

	 Premises
	  	 1, 2, 4, 5, 6, 7, 8,13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 39, 40, 41, 42, 44,
45,46, 48, 49, 51, 52

	 Prime Rate
	  	 2

	 Property
	  	 2, 3, 4, 5, 8, 9, 10, 11, 13, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 32, 35, 36, 37, 39, 40, 42, 43, 44, 45,
48

		
	 R
	  	 
		
	 Real Estate Taxes
	  	 7, 8, 9, 12, 13

	 Rent
	  	 1, 2, 4,7, 8, 11, 12, 14, 19, 20, 23, 28, 30, 31, 32, 33, 34, 35, 36, 38, 40, 41, 42, 44, 46, 47, 48, 49

	 Rental Adjustment
	  	 7, 11, 12

	 Rules
	  	 4, 25, 52

		
	 S
	  	 
		
	 Security Deposit
	  	 14,15

	 State
	  	 1,8, 15, 26, 50

	 Statement
	  	 11, 14

	 Subsequent Operating Expenses
	  	 12

	 Successor Landlord
	  	 38

	 Superior Leases
	  	 38

	 Superior Mortgages
	  	 11,38

	 Systems and Equipment
	  	 3, 4, 6, 10, 17, 18, 19, 20, 21, 25, 29, 45

		
	 T
	  	 
		
	 Table
	  	 1,2,7,8,46

	 Takings
	  	 31

	 Temporary Condemnation
	  	 32

	 Tenant
	  	 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
39, 40, 41, 42, 43, 44, 45, 46, 47,48,49,50,51,52

	 Tenant Delays
	  	 6

	 Term
	  	 1, 2, 3, 6, 7, 8, 9, 11, 12, 13, 14, 15, 18, 21, 23, 27, 31, 32, 41, 45, 46, 47, 48, 49, 52

	 Transfer
	  	 32, 33, 34, 35, 36, 39, 42

	 Transfer Notice
	  	 32, 33, 34, 35

	 Transfer Premium
	  	 35, 36

		
	 U
	  	 
		
	 Utilities
	  	 7, 8, 9, 11, 12, 13, 17

		
	 W
	  	 
		
	 Work
	  	 6, 7, 23, 24, 25, 52

  

 64Seventh Supplemental Indenture, dated 03/11/2004

 EXHIBIT 4.1 
  

  
 SEVENTH SUPPLEMENTAL INDENTURE 
  
 by and
between 
  
 STANDARD PACIFIC CORP. 
  
 and 
  
 J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, 
 as Trustee 
  

  
 Dated as of March 11, 2004 
  

  
 AUTHORIZING THE ISSUANCE OF 
  
 5 1/8% SENIOR NOTES DUE 2009 
  
 (Supplemental to the Indenture dated as of April 1, 1999) 

 

 TABLE OF CONTENTS 
  

					
	 ARTICLE ONE SCOPE OF SEVENTH SUPPLEMENTAL INDENTURE
	  	1
		
	 ARTICLE TWO DEFINITIONS
	  	2
			
	 Section 2.01
	  	 Definitions
	  	2
		
	 ARTICLE THREE AUTHORIZATION AND TERMS
	  	9
			
	 Section 3.01
	  	 Authorization
	  	9
	 Section 3.02
	  	 Terms
	  	9
		
	 ARTICLE FOUR REDEMPTION
	  	12
			
	 Section 4.01
	  	 Optional Redemption
	  	12
	 Section 4.02
	  	 Acceleration
	  	13
	 Section 4.03
	  	 Change of Control
	  	13
		
	 ARTICLE FIVE REGISTRAR OF SECURITIES; PAYING AGENT
	  	14
		
	 ARTICLE SIX CERTAIN COVENANTS
	  	15
			
	 Section 6.01
	  	 Compliance with Securities Laws
	  	15
	 Section 6.02
	  	 Limitation on Additional Indebtedness
	  	15
	 Section 6.03
	  	 Limitations on Liens
	  	16
	 Section 6.04
	  	 Limitation on Restricted Payments
	  	17
	 Section 6.05
	  	 Limitation on Asset Sales
	  	18
	 Section 6.06
	  	 Transactions with Affiliates
	  	19
	 Section 6.07
	  	 Limitation on Payment Restrictions Affecting Restricted Subsidiaries
	  	20
	 Section 6.08
	  	 Restricted and Unrestricted Subsidiaries
	  	21
	 Section 6.09
	  	 Mergers and Sales of Assets by the Company
	  	21
	 Section 6.10
	  	 Reports to Holders of the Notes
	  	22
	 Section 6.11
	  	 Future Subsidiary Guarantees
	  	22
		
	 ARTICLE SEVEN EVENTS OF DEFAULT
	  	22
			
	 Section 7.01
	  	 Additional Events of Default
	  	22
	 Section 7.02
	  	 Inapplicability of Cure Provisions to Certain Events of Default
	  	22
		
	 ARTICLE EIGHT MISCELLANEOUS
	  	23
			
	 Section 8.01
	  	 Governing Law
	  	23
	 Section 8.02.
	  	 No Adverse Interpretation of Other Agreements
	  	23
	 Section 8.03.
	  	 No Recourse Against Others
	  	23
	 Section 8.04.
	  	 Successors and Assigns
	  	23

  

 i 

					
	 Section 8.05
	  	 Duplicate Originals
	  	23
	 Section 8.06
	  	 Severability
	  	23
		
	 EXHIBIT A - FORM OF NOTE
	  	A-1

  

 ii 

  
 STANDARD PACIFIC CORP.

  
 SEVENTH SUPPLEMENTAL INDENTURE 
  
 This Seventh Supplemental Indenture, dated as of March 11, 2003 (the
“Seventh Supplemental Indenture”), is entered into between Standard Pacific Corp., a Delaware corporation (the “Company”), and J.P. Morgan Trust Company, National Association (as successor in interest to Bank One Trust Company,
N.A. and First National Bank of Chicago), as trustee (the “Trustee”); 
  
 W I T N E S S E T H: 
  
 WHEREAS, this Seventh Supplemental Indenture is supplemental to the Indenture, dated as of April 1, 1999 (the “Original Indenture”), as previously supplemented by that certain First Supplemental Indenture dated as of April 13,
1999, Second Supplemental Indenture dated as of September 5, 2000, Third Supplemental Indenture dated as of December 28, 2001, Fourth Supplemental Indenture dated as of March 4, 2003, Fifth Supplemental Indenture dated as of May 12, 2003, and Sixth
Supplemental Indenture dated as of September 23, 2003 (the Original Indenture, as supplemented, the “Indenture”), by and between the Company and the Trustee; 
  
 WHEREAS, the Company has determined to authorize the creation of its 5 1/8% Senior Notes due 2009 (the “Notes”), and currently desires to issue Notes in the aggregate amount of $150,000,000; 
  
 WHEREAS, pursuant to Section 2.01 of the Original Indenture, the Company may
establish one or more Series of Securities from time to time as authorized by a supplemental indenture; and 
  
 WHEREAS, all things necessary to make this Seventh Supplemental Indenture a valid agreement of the Company and the Trustee, in accordance with its terms,
and a valid amendment of, and supplement to, the Indenture have been done. 
  
 NOW, THEREFORE, the parties hereto agree, as follows: 
  
 ARTICLE ONE 
 SCOPE OF SEVENTH SUPPLEMENTAL INDENTURE 
  
 The changes, modifications and supplements to the Original Indenture affected
by this Seventh Supplemental Indenture shall be applicable only with respect to, and govern the terms of, the Notes, which shall be unlimited in aggregate principal amount outstanding at any time and which may be issued from time to time, and shall
not apply to any other Securities that may be issued under the Original Indenture unless a supplemental indenture with respect to such other Securities specifically incorporates such changes, modifications and supplements. 
  
 In the event that the Company shall issue and the Trustee shall authenticate
any Notes issued under this Seventh Supplemental Indenture subsequent to the Original Issue Date, the 

  

 1 

 
Company shall use its reasonable best efforts to obtain the same “CUSIP” number for such Notes as is printed on the Notes outstanding at such time;
provided, however, that if any Notes issued under this Seventh Supplemental Indenture subsequent to the Original Issue Date are determined, pursuant to an Opinion of Counsel for the Company in a form reasonably satisfactory to the Trustee, to be a
different class of security than the Notes outstanding at such time for federal income tax purposes, the Company may obtain a “CUSIP” number for such Notes that is different than the “CUSIP” number printed on the Notes then
outstanding. Notwithstanding the foregoing, all Notes issued under this Seventh Supplemental Indenture shall vote and consent together on all matters as one class and no Notes will have the right to vote or consent as a separate class on any matter.

  
 ARTICLE TWO 
 DEFINITIONS 
  
 Section 2.01 Definitions. The following terms shall have the meaning set forth below in this Seventh Supplemental Indenture. Except as otherwise
provided in this Seventh Supplemental Indenture, all words, terms and phrases defined in the Original Indenture (but not otherwise defined herein) shall have the same meaning herein as in the Original Indenture. To the extent terms defined herein
differ from terms defined in the Original Indenture the terms defined herein will govern for purposes of this Seventh Supplemental Indenture and the Notes. 
  
 “Additional Assets” means (i) any property or assets (other than Indebtedness and Capital Stock) in a Related Business; or (ii) the
Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Company or another Restricted Subsidiary; provided, however, that any such Restricted Subsidiary is primarily engaged in a
Related Business. For purposes of this definition, “Related Business” means any business related, ancillary or complementary (as defined in good faith by the Board of Directors) to the business of the Company and the Restricted
Subsidiaries on the Original Issue Date. 
  
 “Additional
Notes” means any newly issued Notes, issued after the Original Issue Date of the Initial Notes from time to time in accordance with the terms of the Indenture. 
  
 “Asset Disposition” means any sale, lease, transfer or other disposition (or series of related sales,
leases, transfers or dispositions) by the Company or any Restricted Subsidiary, including any disposition by means of a merger, consolidation or similar transaction (each referred to for the purposes of this definition as a “disposition”),
of (i) any shares of Capital Stock of a Restricted Subsidiary (other than directors’ qualifying shares and, to the extent required by local ownership laws in foreign countries, shares owned by foreign shareholders); (ii) all or substantially
all the assets of any division, business segment or comparable line of business of the Company or any Restricted Subsidiary; or (iii) any other assets of the Company or any Restricted Subsidiary having a fair market value (as determined in good
faith by the Board of Directors) in excess of $1,000,000 disposed of in a single transaction or series of related transactions outside of the ordinary course of business of the Company or such Restricted Subsidiary (other than, in the case of (i),
(ii) and (iii) above, a disposition by a Restricted Subsidiary to the Company or by the Company or a Restricted Subsidiary to a Wholly-Owned Subsidiary). 
  

 2 

 “Average Life” means, as of the date of determination, with respect to any Indebtedness,
the quotient obtained by dividing (i) the sum of the products of the numbers of years from the date of determination to the dates of each successive scheduled principal payment (assuming the exercise by the obligor of such Indebtedness of all
unconditional (other than as to the giving of notice) extension options of each such scheduled payment date) of such Indebtedness multiplied by the amount of such principal payment by (ii) the sum of all such principal payments. 
  
 “Change of Control” means the occurrence of any of the
following events: 
  
 (i) any “person”
or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause such person or
group shall be deemed to have “beneficial ownership” of all shares that any such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more
than 50% of the total voting power of the Voting Stock of the Company; 
  
 (ii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors (together with any new directors whose election by such Board of Directors or whose
nomination for election by the shareholders of the Company was approved by a majority vote of the directors of the Company then still in office who were either directors at the beginning of such period or whose election or nomination for election
was previously so approved) cease for any reason to constitute a majority of the Board of Directors then in office; or 
  
 (iii) the merger or consolidation of the Company with or into another Person or the merger of another Person with or into the Company, or
the sale of all or substantially all the assets of the Company to another Person, other than any such sale to one or more Restricted Subsidiaries, and in the case of any such merger or consolidation, the securities of the Company that are
outstanding immediately prior to such transaction and which represent 100% of the aggregate voting power of the Voting Stock of the Company are changed into or exchanged for cash, securities or property, unless pursuant to such transaction such
securities are changed into or exchanged for, in addition to any other consideration, securities of the surviving corporation, or a parent corporation that owns all of the Capital Stock of such surviving corporation, that represent immediately after
such transaction, at least a majority of the aggregate voting power of the Voting Stock of the surviving corporation or such parent corporation, as the case may be. 
  
 “Consolidated Coverage Ratio” with respect to the Company as of any date of determination means the ratio
of the Company’s EBITDA to its Consolidated Interest Incurred for the four fiscal quarters ending immediately prior to the date of determination. If the Indebtedness which is being Incurred is Incurred in connection with an acquisition by the
Company or a Restricted Subsidiary, the Consolidated Coverage Ratio shall be determined after giving effect to both the Consolidated Interest Incurred related to the Incurrence of such Indebtedness and the EBITDA as if the acquisition had occurred
at the beginning of the four fiscal quarter period (x) of the Person becoming a Restricted Subsidiary, or (y) in the case of an 

  

 3 

 
acquisition of assets that constitute substantially all of an operating unit or business, relating to the assets being acquired by the Company or a
Restricted Subsidiary. 
  
 “Consolidated Interest
Expense” of the Company means, for any period, the aggregate amount of interest which, in accordance with generally accepted accounting principles as in effect on the Original Issue Date, would be included on an income statement for the
Company and its Restricted Subsidiaries on a consolidated basis, whether expensed directly, or included as a component of cost of goods sold, or allocated to joint ventures or otherwise (including, but not limited to, imputed interest included on
Capitalized Lease Obligations, all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, the net costs associated with Hedging Obligations, amortization of other financing
fees and expenses, the interest portion of any deferred payment obligation, amortization of discount or premium, if any, and all other non-cash interest expense), excluding interest expense related to mortgage banking operations plus the product of
(i) cash dividends paid on any Preferred Stock of the Company times (ii) a fraction, the numerator of which is one and the denominator of which is one minus the then current effective aggregate federal, state and local tax rate of the Company,
expressed as a decimal. 
  
 “Consolidated Interest
Incurred” of the Company means, for any period, Consolidated Interest Expense, plus or minus without duplication, the difference between capitalized interest for such period and the interest component of cost of goods sold for such period.

  
 “Consolidated Net Income” for any period,
means the aggregate of the Net Income of the Company and its Restricted Subsidiaries for such period, on a consolidated basis, determined in accordance with generally accepted accounting principles as in effect on the Original Issue Date, provided
that (i) the Net Income of any Person in which the Company or any Restricted Subsidiary has a joint interest with a third party (other than an Unrestricted Subsidiary) shall be included only to the extent of the lesser of (A) the amount of dividends
or distributions actually paid to the Company or a Restricted Subsidiary or (B) the Company’s direct or indirect proportionate interest in the Net Income of such Person, provided that, so long as the Company or a Restricted Subsidiary has an
unqualified legal right to require the payment of a dividend or distribution, Net Income shall be determined solely pursuant to this clause (B); (ii) the Net Income of any Unrestricted Subsidiary shall be included only to the extent of the amount of
dividends or distributions (the fair value of which, if other than in cash, to be determined by the Board of Directors, in good faith) by such Subsidiary to the Company or to any of its consolidated Restricted Subsidiaries; and (iii) the Net Income
of any Unrestricted Subsidiary, any Homebuilding Joint Venture or any other Person in which the Company or any Restricted Subsidiary has a joint interest with a third party that is not existing on December 31, 2003 shall be included only to the
extent that the aggregate amount of dividends or distributions (the fair value of which, if other than cash, to be determined by the Board of Directors, in good faith) by such Subsidiary or Homebuilding Joint Venture to the Company or to any of its
consolidated Restricted Subsidiaries exceeds the aggregate amount of unpaid loans or advances and unreturned capital contributions made by the Company or any Restricted Subsidiary in or to such Subsidiary or Homebuilding Joint Venture. 

 
 “Consolidated Net Worth” of the Company means
consolidated stockholders’ equity of the Company, less any increase in stockholders’ equity of each of the Unrestricted Subsidiaries 

  

 4 

 
subsequent to December 31, 2003 attributable to the Company or any of its Restricted Subsidiaries, as determined in accordance with generally accepted
accounting principles as in effect on the Original Issue Date. 
  
 “Consolidated Tangible Net Worth” with respect to the Company means the consolidated stockholders’ equity of the Company, as determined in accordance with generally accepted accounting principles, as in effect on the
Original Issue Date, less (i) that portion of any increase in each of the Unrestricted Subsidiaries’ stockholders’ equity subsequent to December 31, 2003 attributable to the Company or any of its Restricted Subsidiaries, as determined in
accordance with generally accepted accounting principles as in effect on the Original Issue Date, and (ii) the Intangible Assets of the Company and the Restricted Subsidiaries. “Intangible Assets” means the amount (to the extent reflected
in determining consolidated stockholders’ equity) of (A) all write-ups (other than write-ups of tangible assets of a going concern business made within twelve months after the acquisition of such business) in the book value of any asset owned
by the Company or any Restricted Subsidiary, and (B) all goodwill, trade names, trademarks, patents and other like intangibles. 
  
 “Disqualified Stock” means “Disqualified Stock” as defined in the Original Indenture, except that for the purposes of this
Series, “Disqualified Stock” shall not include Capital Stock which is redeemable solely pursuant to a change in control provision that does not (A) cause such Capital Stock to become redeemable in circumstances which would not constitute a
Change of Control and (B) require the Company to pay the redemption price therefor prior to the repurchase date specified under Section 4.03 herein. 
  
 “EBITDA” of the Company for any period means the sum of Consolidated Net Income plus Consolidated Interest Expense plus, without
duplication, the following to the extent deducted in calculating such Consolidated Net Income: (i) income tax expense, (ii) depreciation expense, (iii) amortization expense and (iv) all other non-cash items reducing Consolidated Net Income (other
than items that will require cash payments in the future and for which an accrual or reserve is, or is required by generally accepted accounting principles as in effect on the Original Issue Date to be, made), less all non-cash items increasing
Consolidated Net Income, in each case for such period. Notwithstanding the foregoing, the provision for taxes based on the income or profits of, and the depreciation and amortization of, a Subsidiary of the Company shall be added to Consolidated Net
Income to compute EBITDA only to the extent (and in the same proportion) that the net income of such Subsidiary was included in calculating Consolidated Net Income. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Guarantor” means any Restricted Subsidiary guaranteeing
payment of the notes pursuant to Section 6.11 hereof. 
  
 “Homebuilding Joint Venture” means (i) any Unrestricted Subsidiary and (ii) any Person in which the Company or any of its Subsidiaries has an ownership interest but less than an 80% ownership interest that, in each case,
was formed for and is engaged in homebuilding operations. 
  

 5 

 “Incur” means issue, assume, guarantee, incur or otherwise become liable for; provided,
however, that any Indebtedness or Capital Stock of a Person existing at the time such Person becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Subsidiary at the time it becomes a
Subsidiary; provided further, however, that in the case of a discount security, neither the accrual of interest nor the accretion of original issue discount shall be considered an Incurrence of Indebtedness. The term “Incurrence” when used
as a noun shall have a correlative meaning. 
  
 “Indebtedness” means “Indebtedness” as defined in the Original Indenture, except that: 
  
 (A) clause (i) of the definition is amended by deleting it in its entirety, and inserting in lieu thereof the following: 
  
 (i) the principal of and premium (if any) in respect of:

  

	 	(A)	indebtedness of such Person for money borrowed and 

  

	 	(B)	indebtedness for borrowed money evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable;

  
 (B) in the case of any loan to value maintenance
agreement (or similar agreement) by which the Company or any Restricted Subsidiary agrees to maintain for a joint venture a minimum ratio of Indebtedness outstanding to value of collateral property, only amounts owing by the Company or the
Restricted Subsidiary (or which would be owing upon demand of the lender) at such date under such agreements will be included in Indebtedness. 
  
 “Initial Notes” means Notes issued on March 17, 2004 and any Notes issued in replacement therefor. 
  
 “Interest Payment Date” means the Stated Maturity of an
installment of interest on the Notes. 
  
 “Interest
Rate Agreement” means any interest rate swap agreement, interest rate cap agreement or other financial agreement or arrangement designed to protect the Company or any Restricted Subsidiary against fluctuations in interest rates. 

 
 “Investment” in any Person means any direct or indirect
advance, loan (other than advances to customers in the ordinary course of business that are recorded as accounts receivable on the balance sheet of such Person) or other extensions of credit (including by way of guarantee or similar arrangement) or
capital contribution to (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of others), or any purchase or acquisition of Capital Stock, Indebtedness or other similar
instruments issued by such Person. 
  
 “Maturity”
means the date on which the principal of the Notes becomes due and payable, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 
  

 6 

 “Mortgage” means a first priority mortgage or first priority deed of trust on improved
real property. 
  
 “Net Income” of any Person
means the net income (loss) of such Person, determined in accordance with generally accepted accounting principles, as in effect on the Original Issue Date; excluding, however, from the determination of Net Income all gains (to the extent that they
exceed all losses) realized upon the sale or other disposition (including, without limitation, dispositions pursuant to sale leaseback transactions) of any real property or equipment of such Person, which is not sold or otherwise disposed of in the
ordinary course of business, or of any Capital Stock of such Person or its subsidiaries owned by such Person. 
  
 “Net Proceeds” means with respect to any sale, assignment, exchange, lease, transfer or other disposition of assets, the consideration
received by the Company (or a Restricted Subsidiary, as the case may be) for such disposition after (i) provision for all income and other taxes resulting from such asset disposition, (ii) payment of all brokerage commissions, underwriting, legal,
accounting, appraisal and other fees and expenses related to such asset sale and (iii) deduction of appropriate amounts to be provided by the Company or a Restricted Subsidiary as a reserve, in accordance with GAAP, against any liabilities
associated with the assets sold or disposed of in such asset disposition and retained by the Company or a Restricted Subsidiary after such asset sale, including, without limitation, pension and other post-employment benefit liabilities and against
any indemnification obligations associated with the assets sold or disposed of in such asset sale. 
  
 “Non-Recourse Indebtedness” means Indebtedness or other obligations secured by a lien on property to the extent that the liability for
such Indebtedness or other obligations is limited to the security of the property without liability on the part of the Company or any Subsidiary (other than the Subsidiary which holds title to such property) for any deficiency. 
  
 “Obligations” means any principal, interest, penalties,
fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness. 
  
 “Original Issue Date” means the first date of the original issue of any of the Notes pursuant to the Indenture. 
  
 “Outstanding Notes” means the Company’s 61⁄4% Senior
Notes due 2014, the Company’s 73⁄4% Senior Notes due 2013, the Company’s 91⁄4% Senior Subordinated Notes due 2012, the Company’s 6 7/8% Senior Notes due 2011, the Company’s 91⁄2% Senior Notes due 2010, the Company’s 81⁄2% Senior Notes due 2009, the Company’s 61⁄2% Senior Notes due 2008 and the Company’s
8% Senior Notes due 2008. 
  
 “Regular Record
Date” for the interest payable on any Interest Payment Date on the Notes means the dates specified in Section 3.02(f)(iii). 
  
 “Refinance” means, in respect of Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or to issue
other Indebtedness in exchange or replacement for, such Indebtedness. “Refinancing” shall have a correlative meaning. 
  

 7 

 “Restricted Investment” means any loan, advance, capital contribution or transfer
(including by way of guaranty or other similar arrangement) in or to any Unrestricted Subsidiary, Homebuilding Joint Venture or any Person in which the Company, directly or indirectly, has an ownership interest but less than an 80% ownership
interest; provided, however, that loans, advances, capital contributions or transfers (including by way of guaranty or other similar arrangement) to a Homebuilding Joint Venture shall be counted as a Restricted Investment only to the extent that the
aggregate at any one time outstanding of all such amounts expended (or with respect to guaranties or similar arrangements the amounts then guaranteed) exceed, subsequent to December 31, 1996, $30 million for any one Homebuilding Joint Venture or 30%
of Consolidated Tangible Net Worth in the aggregate for all Homebuilding Joint Ventures. In the case of any loan to value maintenance agreement (or similar agreement) by which the Company or any Restricted Subsidiary agrees to maintain for a joint
venture a minimum ratio of indebtedness outstanding to value of collateral property, only amounts owing by the Company or the Restricted Subsidiary (or which would be owing upon demand of the lender) under such agreements will be counted as a
Restricted Investment. Restricted Investment shall include the fair market value of the net assets of any Restricted Subsidiary that at any time is designated an Unrestricted Subsidiary. Any property transferred to an Unrestricted Subsidiary, and
the net assets of a Restricted Subsidiary that is designated an Unrestricted Subsidiary, shall be valued at fair market value at the time of such transfer, in each case as determined by the Board of Directors of the Company in good faith.

  
 “Restricted Subsidiary” means any 80% or more
owned Subsidiary that has not been designated an Unrestricted Subsidiary. 
  
 “Revolving Credit Facility” means that certain Revolving Credit Agreement (the “Credit Agreement”), dated as of January 29, 2003 among the Company, Bank of America, N.A., Bank One, NA,
Guaranty Bank, Washington Mutual Bank, FA, Fleet National Bank, PNC Bank, National Association, U.S. Bank, National Association, Comerica Bank, Bank of the West, Union Bank of California, SunTrust Bank, AmSouth Bank, Credit Suisse First Boston,
Cayman Islands Branch, Wells Fargo Bank, National Association and California Bank & Trust and the other Loan Documents (as defined in the Credit Agreement) or other analogous documents entered into in connection with any refinancing,
restructuring, renewal, extension, refunding, replacement or increase thereof, as any of the foregoing has been or may from time to time be amended, renewed, supplemented or otherwise modified at the option of the parties thereto (in whole or in
part, and without limitation as to amount, terms, conditions, covenants and other provisions) and to add any Subsidiary as additional direct obligors thereunder. 
  
 “Stated Maturity” means the date specified in the Notes as the fixed date on which an amount equal to the
principal of or interest on the Notes is due and payable. 
  
 “Subordinated Notes “ means the Company’s 91⁄4 % Senior Subordinated Notes due 2012. 
  
 “Unrestricted Subsidiary” means (i) any Subsidiary in which the Company, directly or indirectly, has less than an 80% ownership interest;
(ii) any 80% or more owned Subsidiary which in accordance with Section 6.08 herein has been designated in a resolution adopted by the Board of Directors of the Company as an Unrestricted Subsidiary, in each case unless and until 

  

 8 

 
such Subsidiary shall, in accordance with Section 6.08 herein, be designated by a resolution of the Board of Directors of the Company as a Restricted
Subsidiary; and (iii) any 80% or more owned Subsidiary a majority of the Voting Stock of which shall at the time be owned directly or indirectly by one or more Unrestricted Subsidiaries. The Company hereby designates Family Lending Services,
Standard Pacific Financing Inc. and Standard Pacific Financing L.P. as Unrestricted Subsidiaries. 
  
 “Voting Stock” means with respect to any Person, securities of any class of Capital Stock of such Person entitling the holders thereof
(whether at all times or only so long as no senior class of stock has voting power by reason of any contingency) to vote in the election of members of the board of directors of such Person. 
  
 “Warehouse Facility” means any bank credit agreement,
repurchase agreement or other credit facility entered into to finance the making of Mortgage loans originated by the Company or any of its Subsidiaries. 
  
 “Wholly-Owned Subsidiary” means a Subsidiary, all of the Capital Stock (whether or not voting, but exclusive of directors’
qualifying shares) of which is owned by the Company or a Wholly-Owned Subsidiary. 
  
 ARTICLE THREE 
 AUTHORIZATION AND TERMS 
  
 Section 3.01 Authorization. The Company hereby establishes the
61⁄2% Senior Notes due 2008 as a Series of Securities of the Company. The form of Note attached hereto as Exhibit A is hereby approved and authorized in accordance with the provisions of the Indenture. 
  
 Section 3.02 Terms. The terms of the Series of Securities established
pursuant to this Seventh Supplemental Indenture shall be as follows: 
  
 (a) Title. The title of the Series of Securities established hereby is the “5 1/8% Senior
Notes due 2009.” 
  
 (b) Aggregate Principal
Amount. On March 17, 2004, which shall be the Original Issue Date, the Company will deliver Notes for original issue in aggregate principal amount not to exceed $150,000,000 executed by the Company to the Trustee for authentication. The
aggregate principal amount of the Notes which may be authenticated and delivered under the Indenture is unlimited. 
  
 (c) Book-Entry System. The Notes will be issued in the form of one or more securities in registered global form (the “Global Note”) held
in book-entry form. The Depository Trust Company, as depository (“DTC”), or its nominee will initially be the sole registered holder of the Notes for all purposes under the Indenture. 
  
 A Global Note may not be transferred except as a whole by DTC to a nominee of
DTC or by a nominee of DTC to DTC. A Global Note is exchangeable for Notes in definitive form only if (i) the Company notifies the Trustee in writing that DTC is no longer willing or able to act as a 

  

 9 

 
depositary and the Company is unable to locate a qualified successor within 90 days, or (ii) the Company, at its option, notifies the Trustee in writing that
it elects to cause the issuance of Notes in definitive form under the Indenture. In either instance, upon surrender by the relevant Global Note Holder of its Global Note, Notes in definitive form will be issued to each Person that such Global Note
Holder and DTC identifies as being the beneficial owner of the related Notes. Any Global Note that is exchangeable for Notes in definitive form pursuant to the preceding sentence will be exchanged for Notes in definitive form in authorized
denominations and transferred to and registered in such names of such beneficial owners as the Depositary holding such Global Note may direct. Subject to the foregoing, a Global Note is not exchangeable, except for a Global Note of like denomination
to be registered in the name of the Depositary or its nominee. In the event that a Global Note becomes exchangeable for Notes in definitive form, Notes in definitive form will be issued only in fully registered form in denomination of $1,000 or
integral multiples thereof. 
  
 (d) Persons to Whom Interest
Payable. Interest on the Notes shall be payable to the Person in whose name a Note is registered at the close of business (whether or not a Business Day) on the Regular Record Date (as set forth in Section 3.02(f)(iii) below), for such interest
payment, except (i) that interest payable on April 1, 2009 shall be payable to the Person to whom principal is payable, and (ii) that default interest shall be payable in the manner provided in Section 2.11 of the Original Indenture. 
  
 (e) Stated Maturity. The date on which the principal of the Notes
shall be payable, unless accelerated pursuant to the Indenture, is April 1, 2009. 
  
 (f) Rate of Interest; Interest Payment Dates; Regular Record Dates; Overdue Principal and Interest. 
  
 (i) Rate of Interest. The principal amount of each of the Notes shall bear simple interest at the rate of 5 1/8% per annum. The date from which interest shall accrue for each of the Notes shall be March 17, 2004 or the
Interest Payment Date next preceding the date of issuance of such Notes. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 
  
 (ii) Interest Payment Dates. Interest on the Notes shall be payable semiannually in arrears on April
1 and October 1 of each year, commencing October 1, 2004. If any Interest Payment Date or Maturity of the Notes falls on a day that is not a Business Day, the payment due on such Interest Payment Date or at Maturity will be made on the following day
that is a Business Day as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or Maturity, as the case may be. 
  
 (iii) Regular Record Dates. The Regular Record Dates
for interest payable on each April 1 and October 1 will be the immediately preceding March 15 and September 15 (whether or not a Business Day), respectively. 
  

 10 

 (iv) Overdue Principal and Interest. Overdue principal and, to the extent payment
of such interest shall be legally enforceable, overdue installments of interest shall bear interest at the rate of 5 1/8% per annum. 
  
 (g) Place of Payment;
Registration of Transfer and Exchange; Notices to Company. 
  
 (i) Place of Payment. Payment of the principal of and interest on the Notes will be made at the corporate trust office of the Trustee in the Borough of Manhattan, The City of New York, or at any other office or
agency designated by the Company for such purpose; provided, however, that at the option of the Company, payment of interest due (other than at Maturity or upon redemption) may be made by check mailed to the address of the Person entitled thereto as
such address shall appear in the register of Securities or by wire transfer of immediately available funds to the accounts specified by the Holders thereof. 
  
 (ii) Registration of Exchange and Transfer. Notes may be presented for exchange and registration of transfer at the corporate trust
office of the Trustee in the Borough of Manhattan, The City of New York, or at the office of any transfer agent hereafter designated by the Company for such purpose. 
  
 (iii) Notices to Company. Notices and demands to or upon the Company in respect to the Notes and the
Indenture may be served at Standard Pacific Corp., 15326 Alton Parkway, Irvine, California 92618, Attention: Secretary. 
  
 (h) Issuance of Additional Notes. The Company shall be entitled to issue Additional Notes under the Indenture which shall have substantially
identical terms as the Notes, other than with respect to the date of issuance, issue price, and amount of interest payable on the first payment date applicable thereto. The Initial Notes and any Additional Notes shall be treated as a single class
for all purposes under the Indenture. 
  
 With respect to any
Additional Notes, the Company shall set forth in an Officers’ Certificate, a copy of which shall be delivered to the Trustee, the following information: 
  

(1) the aggregate principal amount of Notes outstanding immediately prior to the issuance of such Additional Notes; 
  
 (2) the aggregate principal amount of such Additional Notes
to be authenticated and delivered pursuant to this Indenture; 
  
 (3) the issue price and the issue date of such Additional Notes and the amount of interest payable on the first payment date applicable thereto; and 
  
 (4) the “CUSIP”, “ISIN” or “Common Code” number, as applicable, of such
Additional Notes. 
  

 11 

 ARTICLE FOUR 
 REDEMPTION 
  
 Section
4.01 Optional Redemption. The Notes will be redeemable at the option of the Company, in whole or in part, at any time or from time to time, upon not less than 30 nor more than 60 days prior written notice mailed by first class mail to each
Holder of Notes to be redeemed, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed or (ii) the sum, as determined by the Quotation Agent, as defined below, of 100% of the present values of the
principal amount of the notes to be redeemed and the remaining scheduled payments of interest thereon from the redemption date to April 1, 2009 for the notes to be redeemed, exclusive of interest accrued to the redemption date (the “Remaining
Life”) discounted from their respective scheduled payment dates to the redemption date on a semiannual basis (assuming a 360-day year consisting of 30-day months) at the Treasury Rate, as defined below, plus 50 basis points, plus, in either
case, accrued and unpaid interest on the principal amount being redeemed to the date of redemption. 
  
 If less than all of the Notes are to be redeemed, the Trustee will select the Notes to be redeemed on a pro rata basis, by lot or by such other method as
the Trustee in its sole discretion shall deem to be fair and appropriate. 
  
 As used in this Section 4.01: 
  
 (a) “Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the Remaining Life that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity with the Remaining Life. 
  
 (b) “Comparable Treasury Price means, with respect to any redemption date, the average of the Reference
Treasury Dealer Quotations for such redemption date. 
  
 (c) “Quotation Agent” means the Reference Treasury Dealer appointed by the Company. 
  
 (d) “Reference Treasury Dealer” means each of Credit Suisse First Boston LLC, Banc of America Securities LLC, Banc One Capital
Markets, Inc., Comerica Securities, Inc., PNC Capital Markets, Inc. and SunTrust Capital Markets, Inc. and their successors; provided, however, that if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City, a
“primary treasury dealer,” the Company will substitute therefor another primary treasury dealer. 
  
 (e) “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the
average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third business day preceding such redemption date. 
  

 12 

 (f) “Treasury Rate” means, with respect to any redemption date, (1) the yield,
under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication that is published weekly by the Board of
Governors of the Federal Reserve System and that establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the
Comparable Treasury Issue (if no maturity is within three months before or after the stated maturity, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined, and the Treasury Rate
shall be interpolated or extrapolated from such yields on a straight-line basis, rounding to the nearest month) or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain
such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date. The Treasury Rate shall be calculated on the third business day preceding the redemption date. 
  
 Notes in denominations larger than $1,000 may be redeemed in part. If money sufficient to pay the redemption price of and accrued interest on all of the
Notes (or portions thereof) to be redeemed on the redemption date is deposited with the Trustee or paying agent on or before 11:00 a.m. (New York City time) on the redemption date, then on and after the redemption date interest shall cease to accrue
on Notes or portions of them called for redemption. 
  
 Section
4.02 Acceleration. The principal amount of the Notes shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.02 of the Original Indenture. 
  
 Section 4.03 Change of Control. Upon the occurrence of a Change of Control, each Holder shall have the right to
require that the Company repurchase all or a portion of such Holder’s Notes at a purchase price in cash equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of repurchase (subject to the right of
Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date), in accordance with the provisions of the next paragraph. 
  
 Within 30 days following any Change of Control, the Company shall mail a notice to each Holder with a copy to the Trustee
stating: 
  
 (a) that a Change of Control has occurred and that
such Holder has the right to require the Company to purchase such Holder’s Notes at a purchase price in cash equal to 101% of the principal amount outstanding at the repurchase date plus accrued and unpaid interest, if any, to the date of
repurchase (subject to the right of Holders of record on the relevant record date to receive interest on the relevant interest payment date) (the “Repurchase Price”); 
  
 (b) the circumstances and relevant facts and relevant financial information regarding such Change of Control; 
  

 13 

 (c) the repurchase date (which shall be no earlier than 30 days nor later than 60 days from the date such
notice is mailed) (the “Repurchase Date”); 
  
 (d) that
any Note not tendered or accepted for payment will continue to accrue interest; 
  
 (e) that any Note accepted for payment shall cease to accrue interest after the Repurchase Date; 
  
 (f) that Holders electing to have a Note purchased will be required to surrender the Note, with the form entitled “Option of Holder to Elect
Purchase” on the reverse side of the Note completed, to the Paying Agent at the address specified in the Notice at least five days before the Repurchase Date; 
  
 (g) that Holders will be entitled to withdraw their election if the Paying Agent receives, not later than three days prior
to the Repurchase Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing his election to have
the Note purchased; and 
  
 (h) that Holders whose Notes were
purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered. 
  
 On the Repurchase Date, the Company shall (i) accept for payment Notes or portions thereof properly tendered, (ii) deposit with the Paying Agent money
sufficient to pay the purchase price of all Notes or portions thereof so accepted and (iii) deliver to the Trustee Notes so accepted together with an Officers’ Certificate stating the Notes or portions thereof accepted for payment by the
Company. The Paying Agent shall promptly mail or deliver to Holders of Notes so accepted, payment in an amount equal to the Repurchase Price, and the Trustee shall promptly authenticate and mail or deliver to such Holders a new Note equal in
principal amount of any unpurchased portion of the Note surrendered. The Company will publicly announce the results on or as soon after as practical the Repurchase Date. For purposes of this Section 4.03, the Trustee shall act as the Paying Agent.
 
  
 ARTICLE FIVE 
 REGISTRAR OF SECURITIES; PAYING AGENT 
  
 The Company hereby appoints the Trustee as the Registrar and initial Paying Agent. The books of the Registrar of the Securities for the Notes will be
initially maintained at the Corporate Trust Office of the Trustee. 
  

 14 

 ARTICLE SIX 
 CERTAIN COVENANTS 
  
 The
Company covenants as follows: 
  
 Section 6.01 Compliance with
Securities Laws. The Company shall comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange Act and any other securities laws or regulations in connection with the repurchase of Notes pursuant to Section 4.03 or
6.05 hereunder. To the extent that the provisions of any securities laws or regulations conflict with said provisions hereunder, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached
its obligations under said provisions hereunder by virtue thereof. 
  
 Section 6.02 Limitation on Additional Indebtedness. The Company will not, and will not permit any Restricted Subsidiary to, directly or indirectly, Incur any Indebtedness unless, after giving effect thereto, either (i) the ratio of
Indebtedness of the Company and the Restricted Subsidiaries (excluding, for purposes of this calculation only, purchase money mortgages that are Non-Recourse Indebtedness), to Consolidated Tangible Net Worth of the Company is less than 2.25 to 1; or
(ii) the Consolidated Coverage Ratio exceeds 2.0 to 1. 
  
 Notwithstanding the foregoing, the Company and its Restricted Subsidiaries may Incur: (i) Indebtedness under one or more Bank Credit Facilities in an amount not in excess of $750 million outstanding in the aggregate at any one time; (ii)
purchase money mortgages that are Non-Recourse Indebtedness; (iii) Indebtedness Incurred under a Warehouse Facility, provided that the amount of such Indebtedness (excluding funding drafts issued thereunder) outstanding at any time pursuant to this
clause (iii) may not exceed 98% of the value of the Mortgages pledged to secure Indebtedness thereunder; (iv) Indebtedness Incurred solely for the purpose of refinancing or repaying any existing Indebtedness so long as (A) the principal amount of
such new Indebtedness does not exceed the principal amount of the existing Indebtedness refinanced or repaid (plus the premiums or other payments required to be paid in connection with such refinancing or repayment and the expenses incurred in
connection therewith), (B) the maturity of such new Indebtedness is not earlier than that of the existing Indebtedness to be refinanced or repaid, (C) such new Indebtedness, determined as of the date of Incurrence, has an Average Life at least equal
to the remaining Average Life of the Indebtedness to be refinanced or repaid, (D) the new Indebtedness is pari passu with or subordinate to the Indebtedness being refinanced or repaid, and (E) the existing and new Indebtedness are obligations of the
same entity; and (v) if any Restricted Subsidiary guarantees payment of the Notes pursuant to Section 6.11, Indebtedness of the Company owed to a Guarantor and Indebtedness of any Guarantor owed to the Company or any other Guarantor; provided
that upon any Guarantor ceasing to be a Guarantor or such Indebtedness being owed to any Person other than the Company or a Guarantor, the Company or such Restricted Subsidiary, as applicable, shall be deemed to have Incurred Indebtedness not
permitted by this clause (v). 
  
 For purposes of determining
compliance with this Section 6.02, in the event that an item of proposed Indebtedness meets the criteria of more than one of the categories of Indebtedness permitted in clauses (i) through (v) above, or is entitled to be incurred pursuant to the
first paragraph of this Section 6.02, the Company will be permitted to classify (or later classify or 

  

 15 

 
reclassify in whole or in part in its sole discretion) such item of Indebtedness in any manner that complies with this covenant. 
  
 Section 6.03 Limitations on Liens. The Company will not, and will not
permit any Restricted Subsidiary to, issue, assume, guarantee or suffer to exist any Indebtedness secured by any mortgage, pledge, lien or other encumbrance of any nature (herein collectively referred to as a “lien” or “liens”)
upon any property of the Company or any Restricted Subsidiary, or on any shares of stock of any Restricted Subsidiary, without in any such case effectively providing that the Notes (together with, if the Company shall so determine, any other
Indebtedness of the Company or such Restricted Subsidiary ranking pari passu with the Notes) shall be secured equally and ratably with such Indebtedness, except that the foregoing restrictions shall not apply to: (i) liens existing on December 31,
2003; (ii) pledges, guarantees and deposits under workers’ compensation laws, unemployment insurance laws or similar legislation, good faith deposits under bids, tenders or contracts, deposits to secure public or statutory obligations or appeal
or similar bonds, and liens created by special assessment districts used to finance infrastructure improvements; (iii) liens existing on property or assets of any entity on the date on which it becomes a Restricted Subsidiary, which secured
Indebtedness is not Incurred in contemplation of such entity becoming a Restricted Subsidiary; (iv) liens on or leases of model home units; (v) Capitalized Lease Obligations entered into in the ordinary course of business in amounts not in excess of
$25,000,000 outstanding in the aggregate at any one time; (vi) the replacement of any of the items set forth in clauses (i) through (v) above, provided that (A) the principal amount of the Indebtedness secured by liens shall not be increased, (B)
such Indebtedness, determined as of the date of Incurrence, has an Average Life at least equal to the remaining Average Life of the Indebtedness to be refinanced, (C) the maturity of such Indebtedness is not earlier than that of the Indebtedness to
be refinanced, and (D) the liens shall be limited to the property or part thereof which secured the lien so replaced or property substituted therefor as a result of the destruction, condemnation or damage of such property; (vii) liens on property
acquired, constructed or improved by the Company or any Restricted Subsidiary, which liens are either existing at the time of such acquisition or at the time of completion of construction or improvement or created within 120 days after such
acquisition, completion or improvement, to secure Indebtedness Incurred or assumed to finance all or part of such property, including any increase in the principal amount of such Indebtedness and any extension of the repayment schedule and maturity
of such Indebtedness Incurred or entered into in the ordinary course of business; (viii) liens or priorities incurred in the ordinary course of business, such as laborers’, employees’, carriers’, mechanics’, vendors’ and
landlords’ liens or priorities; (ix) liens for certain taxes and certain survey and title exceptions; (x) liens arising out of judgments or awards against the Company or any Restricted Subsidiary with respect to which the Company or such
Restricted Subsidiary is in good faith prosecuting an appeal or proceeding for review and with respect to which it has secured a stay of execution pending such appeal or proceeding for review; (xi) liens on property owned by any Homebuilding Joint
Venture; (xii) liens securing a Warehouse Facility, provided that such liens shall not extend to any assets other than the mortgages, promissory notes and other collateral that secures mortgage loans made by the Company or any of its Restricted
Subsidiaries; (xiii) liens securing the Notes and, if any Restricted Subsidiary guarantees payment of the Notes pursuant to Section 6.11 hereof, liens securing any such guarantee; (xiv) liens which would otherwise be subject to the foregoing
restrictions which, when the Indebtedness relating to those liens is added to all other then 

  

 16 

 
outstanding Indebtedness of the Company and the Restricted Subsidiaries secured by liens and not listed in clauses (i) through (xiii) above, does not exceed
$100,000,000. 
  
 Section 6.04 Limitation on Restricted
Payments. The Company will not, nor will it permit any Restricted Subsidiary to, directly or indirectly, (i) declare or pay any dividend on, or make any distribution in respect of, or purchase, redeem or otherwise acquire or retire for value,
any Capital Stock of the Company other than through the issuance solely of the Company’s own Capital Stock (other than Disqualified Stock), or rights thereto; (ii) make any principal payment on, or redeem, repurchase, defease or otherwise
acquire or retire for value prior to scheduled principal payments or maturity, Indebtedness of the Company or any Restricted Subsidiary which is expressly subordinated in right of payment to the Notes (other than Indebtedness Incurred after the
issuance of the Notes provided that such repayment, redemption, repurchase, defeasance or other retirement is made substantially concurrent with the receipt of proceeds from the Incurrence of Indebtedness that by its terms is both subordinated in
right of payment to the Notes and matures, by sinking fund or otherwise, after the earlier of (A) April 1, 2009, and (B) the maturity date of the Subordinated Indebtedness being repaid, redeemed, repurchased, defeased or otherwise retired); or (iii)
make any Restricted Investment (such payments or any other actions described in (i), (ii) and (iii) being referred to herein collectively as, “Restricted Payments”) unless (A) at the time of, and after giving effect to, the proposed
Restricted Payment, no Event of Default (and no event that, after notice or lapse of time, or both, would become an Event of Default) shall have occurred and be continuing, (B) the Company is able to Incur an additional $1.00 of Indebtedness
pursuant to the first paragraph of the covenant described under Section 6.02 herein, and (C) at the time of, and after giving effect thereto, the sum of the aggregate amount expended (or with respect to guaranties or similar arrangements the amount
then guaranteed) for all such Restricted Payments (the amount expended for such purposes, if other than in cash, to be determined by the Board of Directors of the Company, whose determination shall be conclusive and evidenced by a resolution of such
Board of Directors filed with the Trustee) subsequent to June 30, 1997 shall not exceed the sum of (I) 50% of the aggregate Consolidated Net Income (or, in case such aggregate Consolidated Net Income shall be a deficit, minus 100% of such deficit)
of the Company accrued on a cumulative basis subsequent to June 30, 1997, (II) the aggregate net proceeds, including the fair market value of property other than cash (as determined by the Board of Directors of the Company, whose determination shall
be conclusive and evidenced by a resolution of such Board of Directors filed with the Trustee), received by the Company from the issuance or sale, after the Original Issue Date, of Capital Stock (other than Disqualified Stock) of the Company,
including Capital Stock (other than Disqualified Stock) of the Company issued subsequent to the Original Issue Date upon the conversion of Indebtedness of the Company initially issued for cash, (III) 100% of dividends or distributions (the fair
value of which, if other than cash, to be determined by the Board of Directors, in good faith) paid to the Company (or any Restricted Subsidiary) by an Unrestricted Subsidiary, Homebuilding Joint Venture or any other Person in which the Company (or
any Restricted Subsidiary), directly or indirectly, has an ownership interest but less than an 80% ownership interest to the extent that such dividends or distributions do not exceed the amount of loans, advances or capital contributions made to any
such entity or Person subsequent to the Original Issue Date and included in the calculation of Restricted Payments, and (IV) $40,000,000; provided, however, that the foregoing shall not prevent (aa) the payment of any dividend within
60 days after the date of declaration thereof, if at said date of declaration the making of such payment would have complied with the provisions of this limitation on 

  

 17 

 
dividends; provided, however, that such dividend shall be included in future calculations of Restricted Payments, (bb) the retirement of any shares of the
Company’s Capital Stock by exchange for, or out of proceeds of the substantially concurrent sale of, other shares of its Capital Stock (other than Disqualified Stock); provided, however, that the aggregate net proceeds from such sale shall be
excluded from the calculation of the amounts under subclause (II) above, or (cc) the redemption, repayment, repurchase, defeasance or other retirement of Indebtedness with proceeds received from the substantially concurrent sale of shares of the
Company’s Capital Stock (other than Disqualified Stock); provided however, that the aggregate net proceeds from such sale shall be excluded from the calculation of the amounts under subclause (II) above. 
  
 Section 6.05 Limitation on Asset Sales. The Company will not, and will
not permit any Restricted Subsidiary to, make an Asset Disposition, other than for fair market value and in the ordinary course of business, with an aggregate net book value as of the end of the immediately preceding fiscal quarter greater than 10%
of the Company’s total consolidated assets as of that date, unless (i) the consideration received by the Company (or a Restricted Subsidiary, as the case may be) for such disposition consists of at least 70% cash; provided,
however, that for purposes of this provision (i), the amount of any liabilities assumed by the transferee and any Notes or other Obligations received by the Company or a Restricted Subsidiary which are immediately converted into cash shall be
deemed to be cash, and (ii) the Company shall within 390 days after the date of such sale or sales, apply the Net Proceeds from such sale or sales in excess of an amount equal to 10% of the Company’s total consolidated assets to (A) a purchase
of or an Investment in Additional Assets (other than cash or cash equivalents), (B) repayments, redemptions or repurchases of Indebtedness of the Company which ranks pari passu with the Notes, and/or (C) make an offer to acquire all or
part of the Notes (or Indebtedness of the Company which is pari passu with the Notes) at a purchase price equal to the principal amount thereof plus accrued and unpaid interest thereon to the purchase date. 
  
 In the event the Company shall be required to offer to redeem Notes pursuant
to the provisions of this Section 6.05, the Company shall deliver to the Trustee an Officers’ Certificate specifying the Asset Sale Offer Amount (as defined below) and the proposed date of purchase of the Notes by the Company (the “Asset
Sale Purchase Date”). Not less than 30 days nor more than 60 days prior to the Asset Sale Purchase Date, the Company shall mail or cause the Trustee to mail (in the Company’s name and at its expense) an offer to redeem (the “Asset
Sale Offer”) to each Holder of Notes. The redemption price shall be 100% of the principal amount of the Notes plus accrued interest to the redemption date and upon surrender to the Trustee or the Paying Agent, the Holders of such Notes shall be
paid the redemption price. The Asset Sale Offer is to be and shall be mailed by the Company or the Trustee to the Holders of the Notes at their last registered address. The Asset Sale Offer shall remain open from the time of mailing until 5 days
before the Asset Sale Purchase Date. The Notice shall contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer. The Notice, which shall govern the terms of the Asset Sale Offer, shall
state: 
  
 (a) that the Asset Sale Offer is being made pursuant to
this Section 6.05; 
  
 (b) the amount of Notes offered to be
redeemed (the “Asset Sale Offer Amount”), the purchase price and the Asset Sale Purchase Date; 
  

 18 

 (c) that any Note not tendered or accepted for payment will continue to accrue interest; 
  
 (d) that any Note accepted for payment pursuant to the Asset Sale Offer shall
cease to accrue interest after the Asset Sale Purchase Date; 
  
 (e) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer will be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the reverse side of the Note completed, to
the Paying Agent at the address specified in the Notice at least five days before the Asset Sale Purchase Date; 
  
 (f) that Holders will be entitled to withdraw their election if the Paying Agent receives, not later than three days prior to the Asset Sale Purchase
Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing his election to have the Note
purchased; 
  
 (g) that if Notes and or Indebtedness of the
Company which is pari passu with the Notes in a principal amount in excess of the Asset Sale Offer Amount are tendered pursuant to the Asset Sale Offer, the Company shall purchase Notes and Indebtedness of the Company which ranks
pari passu with the Notes on a pro rata basis or by lot or in such other manner as the Trustee shall deem fair and appropriate; and 
  
 (h) that Holders whose Notes were purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes
surrendered. 
  
 On the Asset Sale Purchase Date, the Company
shall (i) accept for payment Notes or portions thereof properly tendered pursuant to the Asset Sale Offer (on a pro rata basis, by lot or in such other manner specified by the Trustee if required pursuant to paragraph (g) above), (ii) deposit with
the Paying Agent money sufficient to pay the purchase price of all Notes or portions thereof so accepted and (iii) deliver to the Trustee Notes so accepted together with an Officers’ Certificate stating the Notes or portions thereof accepted
for payment by the Company. The Paying Agent shall promptly mail or deliver to Holders of Notes so accepted, payment in an amount equal to the purchase price, and the Trustee shall promptly authenticate and mail or deliver to such Holders a new Note
equal in principal amount of any unpurchased portion of the Note surrendered. Any Notes not so accepted shall be promptly mailed or delivered by the Company to the Holder thereof. The Company will publicly announce the results of the Asset Sale
Offer on or as soon after as practical the Asset Sale Purchase Date. For avoidance of doubt, any amount of Net Proceeds remaining after the Asset Sale Purchase Date shall be returned by the Paying Agent to the Company and may be used by the Company
for any purpose not inconsistent with this Indenture. For purposes of this Section 6.05, the Trustee shall act as the Paying Agent. 
  
 Section 6.06 Transactions with Affiliates. 
  
 (a) The Company shall not, and shall not permit any Restricted Subsidiary to, enter into or permit to exist any transaction or series of related
transactions (including the purchase, sale, lease or exchange of any property, employee compensation arrangements or the rendering 

  

 19 

 
of any service) with any Affiliate of the Company (an “Affiliate Transaction”) unless the terms thereof (i) are no less favorable to the Company or
such Restricted Subsidiary than those that could be obtained at the time of such transaction in arm’s-length dealings with a Person who is not such an Affiliate; and (ii) if such Affiliate Transaction (or series of related Affiliate
Transactions) involve aggregate payments in an amount in excess of $10 million in any one year, (A) are set forth in writing and (B) have been approved by a majority of the disinterested members of the Board of Directors. 
  
 (b) The provisions of the foregoing paragraph shall not prohibit (i) any
Restricted Payment permitted to be paid pursuant to the covenant described under Section 6.04 herein; (ii) any issuance of securities, or other payments, awards or grants in cash, securities or otherwise, pursuant to, or the funding of, employment
arrangements, stock options and stock ownership plans in the ordinary course of business and approved by the Board of Directors or a committee thereof; (iii) the grant of stock options or similar rights to employees and directors of the Company in
the ordinary course of business and pursuant to plans approved by the Board of Directors or a committee thereof; (iv) loans or advances to employees in the ordinary course of business of the Company or its Restricted Subsidiaries; (v) fees,
compensation or employee benefit arrangements paid to and indemnity provided for the benefit of directors, officers or employees of the Company or any Subsidiary in the ordinary course of business; or (vi) any Affiliate Transaction between the
Company and a Restricted Subsidiary or between Restricted Subsidiaries. 
  
 Section 6.07 Limitation on Payment Restrictions Affecting Restricted Subsidiaries. The Company will not, and will not permit any Restricted Subsidiary to, create or otherwise cause or permit to exist or become effective, any
consensual encumbrance or consensual restriction on the ability of any Restricted Subsidiary (i) to pay dividends or make any other distributions on its Capital Stock to the Company or a Restricted Subsidiary or pay any Indebtedness owed to the
Company, (ii) to make any loans or advances to the Company or (iii) transfer any of its property or assets to the Company, except for: (a) any encumbrance or restriction pursuant to an agreement in effect at or entered into on the Original Issue
Date; (b) any encumbrance or restriction with respect to a Restricted Subsidiary pursuant to an agreement relating to any Indebtedness Incurred by such Restricted Subsidiary which was entered into on or prior to the date on which such Restricted
Subsidiary was acquired by the Company (other than as consideration in, or to provide all or any portion of the funds or credit support utilized to consummate, the transaction or series of related transactions pursuant to which such Restricted
Subsidiary became a Restricted Subsidiary or was acquired by the Company) and outstanding on such date; (c) any encumbrance or restriction pursuant to an agreement effecting a Refinancing of Indebtedness Incurred pursuant to an agreement referred to
in clause (a) or (b) of this covenant (or effecting a Refinancing of such Refinancing Indebtedness pursuant to this clause (c)) or contained in any amendment to an agreement referred to in clause (a) or (b) of this covenant or this clause (c);
provided, however, that the encumbrances and restrictions with respect to such Restricted Subsidiary contained in any such refinancing agreement or amendment are no more restrictive in any material respect than the encumbrances and restrictions with
respect to such Restricted Subsidiary contained in such agreements; (d) any such encumbrance or restriction consisting of customary contractual non-assignment provisions to the extent such provisions restrict the transfer of rights, duties or
obligations under such contract; (e) in the case of clause (iii) above, restrictions contained in security agreements or 

  

 20 

 
mortgages securing Indebtedness of a Restricted Subsidiary to the extent such restrictions restrict the transfer of the property subject to such security
agreements or mortgages; (f) any restriction with respect to a Restricted Subsidiary imposed pursuant to an agreement entered into for the sale or disposition of all or substantially all the Capital Stock or assets of such Restricted Subsidiary
pending the closing of such sale or disposition; and (g) any restriction imposed by applicable law. 
  
 Section 6.08 Restricted and Unrestricted Subsidiaries. The Company will not permit any Restricted Subsidiary to be designated as an Unrestricted
Subsidiary unless the Company and its Restricted Subsidiaries would thereafter be permitted to (i) Incur at least $1.00 of Indebtedness under the first paragraph of the covenant described in Section 6.02 herein and (ii) make a Restricted Payment of
at least $1.00 under Section 6.04 herein. 
  
 The Company will not
permit any Unrestricted Subsidiary to be designated as a Restricted Subsidiary unless such Subsidiary has outstanding no Indebtedness except such Indebtedness as the Company could permit it to become liable for immediately after becoming a
Restricted Subsidiary under Section 6.02 herein. 
  
 Promptly
after the adoption of any Board Resolution designating a Restricted Subsidiary as an Unrestricted Subsidiary or an Unrestricted Subsidiary as a Restricted Subsidiary, a copy thereof shall be filed with the Trustee, together with an Officers’
Certificate stating that the provisions of this Section 6.08 have been complied with in connection with such designation. 
  
 The Company will not permit Standard Pacific of Texas, L.P., Standard Pacific of Arizona, Inc., Standard Pacific of Colorado, Inc., Westbrooke Homes,
Colony Communities, Westfield Homes of the Carolinas, LLC, Westfield Homes of Florida Partnership or Westfield Homes of Southwest Florida Partnership to be designated as an Unrestricted Subsidiary or permit the assets of the Company or any
Subsidiary employed in the homebuilding operations to be transferred to an Unrestricted Subsidiary, except in amounts permitted under Section 6.04 herein. At such time, if any, as Standard Pacific of Texas L.P. is converted or merged back into a
corporation named Standard Pacific of Texas, Inc., the reference in the prior sentence to Standard Pacific of Texas, L.P. shall be read as a reference to Standard Pacific of Texas, Inc. 
  
 Section 6.09 Mergers and Sales of Assets by the Company. The Company will not consolidate with, merge into or
transfer all or substantially all of its assets to another Person unless (i) such Person (if other than the Company) is a corporation organized under the laws of the United States or any state thereof or the District of Columbia and expressly
assumes all the obligations of the Company under the Indenture and the Notes; (ii) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; (iii) the Consolidated Net Worth of the
obligor of the Notes immediately after giving effect to such transaction (exclusive of any adjustments to Consolidated Net Worth relating to transaction costs and accounting adjustments resulting from such transaction) is not less than the
Consolidated Net Worth of the Company immediately prior to such transaction; and (iv) the surviving corporation would be able to Incur at least an additional $1.00 of Indebtedness pursuant to the first paragraph of the covenant described under
Section 6.02. 
  

 21 

 Section 6.10 Reports to Holders of the Notes. So long as the Company is subject to the periodic
reporting requirements of the Exchange Act, it shall continue to furnish the information required thereby to the SEC. Even if the Company is entitled under the Exchange Act not to furnish such information to the SEC or to the holders of the Notes,
it will nonetheless continue to furnish information under Section 13 or 15(d) of the Exchange Act to the SEC and the Trustee as if it were subject to such periodic reporting requirements. 
  
 Section 6.11 Future Subsidiary Guarantees. The Company shall not permit any of its Restricted Subsidiaries, directly
or indirectly, to guarantee, assume or in any manner become liable with respect to any of the Outstanding Notes or other notes issued by the Company under an indenture or comparable documents to indentures used in jurisdictions outside of the United
States (other than guarantees in existence on the date of this Seventh Supplemental Indenture) unless such Restricted Subsidiary simultaneously executes and delivers a supplemental indenture to the Indenture providing for the guarantee of the Notes
on the same terms as the guarantee of such Outstanding Notes or other notes issued under an indenture or comparable documents used in jurisdictions outside of the United States, except that the guarantee of the Subordinated Notes shall be
subordinated to the guarantee of the Notes to the same extent as the Subordinated Notes are subordinated to the Notes. 
  
 ARTICLE SEVEN 
 EVENTS OF DEFAULT

  
 Section 7.01 Additional Events of Default. In
addition to the Events of Default specified in the Original Indenture, the following shall constitute Events of Default under Section 6.01 of the Original Indenture with respect to the Notes: 
  
 (i) default under any mortgage, indenture (including the
Indenture) or instrument under which is issued or which secures or evidences Indebtedness of the Company or any Restricted Subsidiary (other than Non-Recourse Indebtedness) which default constitutes a failure to pay principal of such Indebtedness in
an amount of $25,000,000 or more when due and payable (other than as a result of acceleration) or results in Indebtedness (other than Non-Recourse Indebtedness) in the aggregate of $25,000,000 or more becoming or being declared due and payable
before it would otherwise become due and payable, and 
  
 (ii) entry of a final judgment for the payment of money against the Company or any Restricted Subsidiary in an amount of $5,000,000 or more which remains undischarged or unstayed for a period of 60 days after the date on which the right to
appeal such judgment has expired or becomes subject to an enforcement proceeding. 
  
 Section 7.02 Inapplicability of Cure Provisions to Certain Events of Default. With respect to Section 6.01(3) of the Original Indenture, the failure of the Company to comply with the covenant described under
Section 6.09 herein will constitute an Event of Default with notice as provided in Section 6.01 of the Original Indenture, but without passage of time. 
  

 22 

 ARTICLE EIGHT 
 MISCELLANEOUS 
  
 Section 8.01 Governing Law. The laws of the State of New York shall govern this Seventh Supplemental Indenture and the Notes. 
  
 Section 8.02. No Adverse Interpretation of Other Agreements. This Seventh Supplemental Indenture may not be used to interpret another indenture,
loan or debt agreement of the Company or a Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret this Seventh Supplemental Indenture. 
  
 Section 8.03. No Recourse Against Others. A director, officer, employee or stockholder, as such, of the Company shall
not have any liability for any obligations of the Company under the Notes or this Seventh Supplemental Indenture or for any claim based on, in respect of or by reason of, such obligations or their creation. Each Securityholder by accepting the Notes
waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Notes. 
  
 Section 8.04. Successors and Assigns. All covenants and agreements of the Company in this Seventh Supplemental Indenture and the Notes shall bind
its successors and assigns. All agreements of the Trustee in this Seventh Supplemental Indenture shall bind its successors and assigns. 
  
 Section 8.05 Duplicate Originals. The parties may sign any number of copies of this Seventh Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. 
  
 Section 8.06 Severability. In case any one or more of the provisions contained in this Seventh Supplemental Indenture or in the Notes shall for any reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this Seventh Supplemental Indenture or the Notes. 
  
 (Remainder of page intentionally left blank) 
  

 23 

 IN WITNESS WHEREOF, the parties hereto have executed this Seventh Supplemental Indenture by their
officers thereunto as of this 11th day of March, 2004. 
  

			
	STANDARD PACIFIC CORP.
		
	By:	 	 /s/    Andrew H. Parnes

	 	 	

	 	 	 Andrew H. Parnes

	 	 	Executive Vice President-Finance and Chief Financial Officer

  

			
		
	By:	 	 /s/    John M. Stephens

	 	 	

	 	 	 John M. Stephens

	 	 	 Vice President and Corporate Controller

  

			
	 J.P. MORGAN TRUST COMPANY,
NATIONAL ASSOCIATION,
 as Trustee

		
	By:	 	 /s/    Sharon McGrath

	 	 	

	 	 	 Name: Sharon McGrath

	 	 	 Title: Asst. Vice President

  

 24 

 EXHIBIT A 
  

FORM OF NOTE 
  
 THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS
GLOBAL NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES. 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR THE REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN. 
  

					
	 No.
	 	 	 	CUSIP No.: 85375C AQ 4

  
 5 1/8% Senior Notes due 2009 
  
 STANDARD PACIFIC CORP., a Delaware corporation, promises to pay to CEDE & CO., or registered assigns, the principal sum
of One Hundred Fifty Million Dollars ($150,000,000) on April 1, 2009. 
  
 Interest Payment Dates: April 1 and October 1, commencing October 1, 2004 
  
 Record Dates: March 15 and September 15 
  
 Authenticated: March 17, 2004 
  

									
	 Dated: March 17, 2004
	 	 	 	 Standard Pacific Corp.

					
	 	 	 	 	 	 	By	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
					
	 	 	 	 	 	 	By	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 

  
 J.P. Morgan Trust
Company, National Association, as Trustee, certifies that this is one of the Notes referred to in the within mentioned Indenture. 
  

									
					
	 	 	 	 	 	 	By	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Authorized Signatory

  

 STANDARD PACIFIC CORP. 
  
 5 1/8% Senior Notes due 2009 
  
 1.
Interest. STANDARD PACIFIC CORP., a Delaware corporation (the “Company”), promises to pay interest on the principal amount of this Note at the rate per annum shown above. The Company will pay interest semiannually on April 1
and October 1 of each year, commencing October 1, 2004 (each an “Interest Payment Date”) until the principal is paid or made available for payment. Interest on the Notes will accrue from the most recent date to which interest has been paid
or duly provided for or, if no interest has been paid, from March 17, 2004, provided that, if there is no existing default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the
next succeeding Interest Payment Date, interest shall accrue from such Interest Payment Date. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  
 2. Method of Payment. The Company will pay interest on the Notes (except defaulted interest, if any, which
will be paid on such special payment date to Holders of record on such special record date as may be fixed by the Company) to the persons who are registered Holders of Notes at the close of business on the March 15 or September 15 immediately
preceding the Interest Payment Date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. 
  
 3. Paying Agent and
Registrar. Initially, J.P. Morgan Trust Company, National Association (the “Trustee”) will act as Paying Agent and Registrar. The Company may change or appoint any Paying Agent, Registrar or co-Registrar without notice. The Company
or any of its Subsidiaries may act as Paying Agent, Registrar or co-Registrar. 
  
 4. Indenture. The Company issued the Notes under an Indenture dated as of April 1, 1999, between the Company and the Trustee (the “Original Indenture,” as supplemented by the First Supplemental
Indenture dated as of April 13, 1999, the Second Supplemental Indenture dated as of September 5, 2000, the Third Supplemental Indenture dated as of December 28, 2001, the Fourth Supplemental Indenture dated as of March 4, 2003, the Fifth
Supplemental Indenture dated as of May 12, 2003, the Sixth Supplemental Indenture dated as of September 23, 2003 and the Seventh Supplemental Indenture dated as of March 11, 2004 (the “Indenture”). The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (“TIA”) as in effect on the date of the Indenture. The Notes are subject to all such terms, and Securityholders are referred to
the Indenture and the TIA for a statement of them. 
  
 The Company
will furnish to any Securityholder upon written request and without charge a copy of the Indenture. Requests may be made to: Standard Pacific Corp., 15326 Alton Parkway, Irvine, California 92618, Attention: Secretary. 
  

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 5. Optional Redemption. The Notes will be redeemable at the option of the Company, in whole
at any time or in part from time to time, upon not less than 30 nor more than 60 days’ prior written notice mailed by first class mail to each Holder’s registered address. 
  
 The Notes will be redeemable at a redemption price equal to the greater of (i) 100% of the principal amount of the Notes to
be redeemed, or (ii) the sum, as determined by the Quotation Agent, as defined in the Indenture, of the present values of 100% of the principal amount of the Notes to be redeemed and the remaining scheduled payments of interest thereon from the
redemption date to April 1, 2009 for the Notes to be redeemed, exclusive of interest accrued to the redemption date, discounted from their respective scheduled payment dates to the redemption date on a semiannual basis (assuming a 360-day year
consisting of 30-day months) at the Treasury Rate, as defined in the Indenture, plus 50 basis points, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to the date of redemption. 
  
 If less than all of the Notes are to be redeemed, the Trustee will select the
Notes to be redeemed on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair and appropriate. Notes in denominations larger than $1,000 may be redeemed in part. If money sufficient to pay the
redemption price of and accrued interest on all of the Notes (or portions thereof) to be redeemed on the redemption date is deposited with the Trustee or paying agent on or before 11:00 a.m. (New York City time) on the redemption date, then on and
after the redemption date interest shall cease to accrue on Notes or portions of them called for redemption. 
  
 6. Mandatory Repurchase Obligation. If there is a Change of Control of the Company, the Holder of this Note shall have the right to require
the Company to repurchase all or a portion of this Note at a purchase price equal to 101% of the principal amount hereof plus accrued and unpaid interest to the date of repurchase, as provided in, and subject to the terms of, the Indenture.

  
 7. Denominations, Transfer, Exchange. If this
Note is issued in global form and contains a legend on the face hereof to such effect, the provisions of this Section 7 shall be deemed superseded by such legend and Section 3.02(c) of the Seventh Supplemental Indenture, to the extent the provisions
of this Section 7 are inconsistent with such legend or Section 3.02(c). 
  
 The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of $1,000. A Holder may transfer or exchange Notes by presentation of such Notes to the Registrar or a co-Registrar with a request to
register the transfer or to exchange them for an equal principal amount of Notes of other denominations. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees
required by law or permitted by the Indenture. The Registrar need not transfer or exchange any Note selected for redemption, except the unredeemed part thereof if the Note is redeemed in part, or transfer or exchange any Notes for a period of 15
days before a selection of Notes to be redeemed. 
  
 8.
Persons Deemed Owners. The registered Holder of this Note shall be treated as the owner of it for all purposes. 
  

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 9. Unclaimed Money. If money for the payment of principal or interest remains unclaimed for
two years, the Trustee or Paying Agent will pay the money back to the Company at its request. After that, Holders entitled to the money must look to the Company for payment unless an abandoned property law designates another person. 
  
 10. Amendment, Supplement, Waiver. Subject to certain
exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the outstanding Notes of each Series affected by the amendment, and any past default or compliance
with any provision relating to any Series of the Notes may be waived in a particular instance with the consent of the Holders of a majority in principal amount of the outstanding Notes of such Series. Without the consent of any Securityholder, the
Company and the Trustee may amend or supplement the Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to create a Series
and establish its terms or to make any other change that does not adversely affect the rights of any Securityholder. 
  
 11. Defaults and Remedies. The following are Events of Default: (i) failure by the Company to pay the principal of any Note when due; (ii)
failure by the Company to pay any interest on any Note when due, continuing for 30 days; (iii) failure by the Company to comply with its other agreements or covenants in the Notes or the Indenture for the benefit of the Holders of the Notes upon the
receipt by the Company of notice of such Default by the Trustee, or upon the receipt by the Company and the Trustee of notice of such Default by the Holders of at least 25% in aggregate principal amount of the Notes, and (except in the case of a
Default with respect to certain covenants described in the Indenture) the Company’s failure to cure such Default within 60 days after receipt of such notice; (iv) certain events of bankruptcy or insolvency; (v) default under any mortgage,
indenture (including the Indenture) or instrument under which is issued or which secures or evidences Indebtedness of the Company or any Restricted Subsidiary (other than Non-Recourse Indebtedness) which default constitutes a failure to pay
principal of such Indebtedness in an amount of $25 million or more when due and payable (other than as a result of acceleration) or results in Indebtedness (other than Non-Recourse Indebtedness) in the aggregate of $25 million or more becoming or
being declared due and payable before it would otherwise become due and payable; and (vi) entry of a final judgment for the payment of money against the Company or any Restricted Subsidiary in an amount of $5 million or more which remains
undischarged or unstayed for a period of 60 days after the date on which the right to appeal such judgment has expired or becomes subject to an enforcement proceeding. 
  
 In case an Event of Default (other than arising out of certain events of bankruptcy or insolvency) occurs and is continuing,
the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes at the time outstanding, by notice in writing to the Company (and to the Trustee if given by the Holders), may declare to be due and payable immediately that
portion of the principal amount of the Notes at the time outstanding and accrued and unpaid interest, if any, to the date of acceleration and upon such declaration the same shall become and be immediately due and payable. In case an Event of Default
arising out of certain events of bankruptcy or insolvency occurs and is continuing, the outstanding principal of and accrued and 

  

 3 

 
unpaid interest, if any, on the Notes shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any
of the Holders. 
  
 Such declaration or acceleration and its
consequences may be rescinded by Holders of a majority in aggregate principal amount of Notes at the time outstanding if all existing Events of Default have been cured or waived (except non-payment of principal that has become due solely because of
the acceleration) and if the rescission would not conflict with any judgment or decree. 
  
 An existing Default (other than a Default in payment of principal of or interest on the Notes or Default with respect to a provision which cannot be modified under the terms of the Indenture without the consent of
each Holder affected) may be waived by the Holders of a majority in aggregate principal amount of Notes at the time outstanding upon the conditions provided in the Indenture. 
  
 12. Successor Corporation. When a successor corporation assumes all the obligations of its predecessor under
the Notes and the Indenture, the predecessor corporation will be released from those obligations. 
  
 13. Trustee Dealings With Company. J.P. Morgan Trust Company, National Association, the Trustee under the Indenture, in its individual or
any other capacity, may make loans to, accept deposits from, and perform services for the Company or its affiliates, and may otherwise deal with the Company or its affiliates, as if it were not Trustee. 
  
 14. No Recourse Against Others. A director, officer, employee
or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Notes or the Indenture or for any claim based on, in respect of or by reason of, such obligations or their creation. Each Holder, by
accepting a Note, waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Notes. 
  
 15. Discharge of Indenture. The Indenture contains certain provisions pertaining to defeasance, which provisions shall for all purposes have
the same effect as if set forth herein. 
  
 16.
Authentication. This Note shall not be valid until the Trustee signs the certificate of authentication on the other side of this Note. 
  
 17. Abbreviations. Customary abbreviations may be used in the name of a Securityholder or an assignee, such as: TEN COM (= tenants in
common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 
  

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 ASSIGNMENT FORM 
  
 If you the Holder want to assign this Note, fill in the form below: 
  
 I or we assign and transfer this Note to 
  
 (Insert assignee’s social security or tax ID number) 
  
 _______________________ 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 (Print or type assignee’s name, address, and zip code) 
  
 and irrevocably appoint                                
                                        
                                        
                                        
                                        
                  , 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 agent to transfer this Note on the books of the Company. The agent may substitute another to act for him. 
  
 Date:                         
 Your signature: 

	
	
	  
	

	 (Sign exactly as your name appears
 on the other side of this Note)

  
 Signature 
 Guarantee:                                     
                
  
  

  

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Note purchased by the Company check the Box:     ̈ 
  
 If you want to elect to have only a part of this Note purchased by the Company state the amount: 
  
 $                             
  
 Date:                    

	
	
	  
	

	 (Sign exactly as your name appears
 on the other side of this Note)

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