Document:

Exhibit

EXHIBIT 10.10

ASSIGNMENT OF MANAGEMENT AGREEMENT
This ASSIGNMENT OF MANAGEMENT AGREEMENT (this “Assignment”) dated as of November 17, 2016 is executed by and among (i) STAR III BRISTOL VILLAGE, LLC, a Delaware limited liability company (“Borrower”), (ii) BERKELEY POINT CAPITAL LLC, a Delaware limited liability company (“Lender”), and (iii) STEADFAST MANAGEMENT COMPANY, INC., a California corporation (“Manager”).
RECITALS:
A.    Borrower is the owner of a multifamily residential apartment project located in Aurora, Colorado (the “Mortgaged Property”).
B.    Manager is the managing agent of the Mortgaged Property pursuant to a Management Agreement dated as of November 17, 2016, between Borrower and Manager (the “Management Agreement”).
C.    Pursuant to that certain Multifamily Loan and Security Agreement dated as of the date hereof, executed by and between Borrower and Lender (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”), Lender has agreed to make a loan to Borrower in the original principal amount of $35,016,000 (the “Mortgage Loan”), as evidenced by that certain Multifamily Note dated as of the date hereof, executed by Borrower and made payable to the order of Lender in the amount of the Mortgage Loan (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Note”).
D.    In addition to the Loan Agreement, the Mortgage Loan and the Note are also secured by, among other things, a certain Multifamily Mortgage, Deed of Trust or Deed to Secure Debt dated as of the date hereof, which encumbers the Mortgaged Property (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Security Instrument”; the Loan Agreement, the Note, the Security Instrument, and all other documents evidencing or securing the Mortgage Loan, the “Loan Documents”).
E.    Borrower is willing to assign its rights under the Management Agreement to Lender as additional security for the Mortgage Loan.
F.    Manager is willing to consent to this Assignment and to attorn to Lender upon receipt of notice of the occurrence of an Event of Default (as hereinafter defined) by Borrower under the Loan Documents, and perform its obligations under the Management Agreement for Lender, or its successors in interest, or to permit Lender to terminate the Management Agreement without liability.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, Borrower, Lender and Manager agree as follows:

	
			
	Assignment of Management Agreement
	Form 6405
	Page  1

	Fannie Mae
	01-16
	© 2016 Fannie Mae

AGREEMENTS:
Section 1.    Recitals.
The recitals set forth above are incorporated herein by reference as if fully set forth in the body of this Assignment.
Section 2.    Assignment.
Borrower hereby transfers, assigns and sets over to Lender, its successors and assigns, all right, title and interest of Borrower in and to the Management Agreement.  Manager hereby consents to the foregoing assignment.  The foregoing assignment is being made by Borrower to Lender as collateral security for the full payment and performance by Borrower of all of its obligations under the Loan Documents.  Although it is the intention of the parties that the assignment hereunder is a present assignment, until the occurrence of any default or failure to perform or observe any obligation, condition, covenant, term, agreement or provision required to be performed or observed by Borrower or any other party under any of the Loan Documents beyond any applicable grace or cure period provided for therein (an “Event of Default”), Borrower may exercise all rights as owner of the Mortgaged Property under the Management Agreement, except as otherwise provided in this Assignment.  The foregoing assignment shall remain in effect as long as the Mortgage Loan, or any part thereof, remains unpaid, but shall automatically terminate upon the release of the Security Instrument as a lien on the Mortgaged Property.
Section 3.    Representations and Warranties.
Borrower and Manager represent and warrant to Lender that (a) the Management Agreement is unmodified and is in full force and effect, (b) the Management Agreement is a valid and binding agreement enforceable against the parties in accordance with its terms, and (c) neither party is in default in performing any of its obligations under the Management Agreement.  Borrower further represents and warrants to Lender that it has not executed any prior assignment of the Management Agreement, nor has it performed any acts or executed any other instrument which might prevent Lender from operating under any of the terms and conditions of this Assignment, or which would limit Lender in such operation.  Manager further represents and warrants to Lender that (1) Manager has not assigned its interest in the Management Agreement, (2) Manager has no notice of any prior assignment, hypothecation or pledge of Borrower’s interest under the Management Agreement, (3) as of the date hereof, Manager has no counterclaim, right of set-off, defense or like right against Borrower, and (4) as of the date hereof, Manager has been paid all amounts due under the Management Agreement.

	
			
	Assignment of Management Agreement
	Form 6405
	Page  2

	Fannie Mae
	01-16
	© 2016 Fannie Mae

Section 4.    Lender’s Right to Cure.
In the event of any default by Borrower under the Management Agreement, Lender shall have the right, but not the obligation, upon notice to Borrower and Manager and until such default is cured, to cure any default and take any action under the Management Agreement to preserve the same.  Borrower hereby grants to Lender the right of access to the Mortgaged Property for this purpose, if such action is necessary.  Borrower hereby authorizes Manager to accept the performance of Lender in such event, without question.  Any advances made by Lender to cure a default by Borrower under the Management Agreement shall become part of the indebtedness and shall bear interest at the Default Rate under the Loan Agreement and shall be secured by the Security Instrument.
Section 5.    Covenants.
(a)    Borrower Covenants.
Borrower hereby covenants with Lender that, during the term of this Assignment:
(1)    Borrower shall not assign Borrower’s interest in the Management Agreement or any portion thereof, or transfer the responsibility for management of the Mortgaged Property from Manager to any other person or entity without the prior written consent of Lender;
(2)    Borrower shall not cancel, terminate, surrender, modify or amend any of the terms or provisions of the Management Agreement without the prior written consent of Lender;
(3)    Borrower shall not forgive any material obligation of the Manager or any other party under the Management Agreement, without the prior written consent of Lender;
(4)    Borrower shall perform all obligations of Borrower under the Management Agreement in accordance with the provisions thereof, any failure of which would constitute a default under the Management Agreement; and
(5)    Borrower shall give Lender written notice of any notice or information that Borrower receives which indicates that Manager is terminating the Management Agreement or that Manager is otherwise discontinuing its management of the Mortgaged Property.
Subject to Section 14.01(c) of the Loan Agreement, any of the foregoing acts done or suffered to be done without Lender’s prior written consent shall constitute an Event of Default.

	
			
	Assignment of Management Agreement
	Form 6405
	Page  3

	Fannie Mae
	01-16
	© 2016 Fannie Mae

(b)    Affiliated Manager Subordination.
Manager agrees that:
(1)    (A) any fees payable to Manager pursuant to the Management Agreement are and shall be subordinated in right of payment, to the extent and in the manner provided in this Assignment, to the prior payment in full of the indebtedness described in the Loan Agreement, and (B) the Management Agreement is and shall be subject and subordinate in all respects to the liens, terms, covenants and conditions of the Security Instrument and the other Loan Documents and to all advances heretofore made or which may hereafter be made pursuant to the Loan Documents (including all sums advanced for the purposes of (i) protecting or further securing the lien of the Security Instrument, curing Events of Default by Borrower under the Loan Documents or for any other purposes expressly permitted by the Loan Documents, or (ii) constructing, renovating, repairing, furnishing, fixturing or equipping the Mortgaged Property);
(2)    if, by reason of its exercise of any other right or remedy under the Management Agreement, Manager acquires by right of subrogation or otherwise a lien on the Mortgaged Property which (but for this Section 5(b)) would be senior to the lien of the Security Instrument, then, in that event, such lien shall be subject and subordinate to the lien of the Security Instrument;
(3)    until Manager receives notice (or otherwise acquires actual knowledge) of an Event of Default, Manager shall be entitled to retain for its own account all payments made under or pursuant to the Management Agreement;
(4)    after Manager receives notice (or otherwise acquires actual knowledge) of an Event of Default, it will not accept any payment of fees under or pursuant to the Management Agreement without Lender’s prior written consent;
(5)    if, after Manager receives notice (or otherwise acquires actual knowledge) of an Event of Default, Manager receives any payment of fees under the Management Agreement, or if Manager receives any other payment or distribution of any kind from Borrower or from any other person or entity in connection with the Management Agreement which Manager is not permitted by this Assignment to retain for its own account, such payment or other distribution will be received and held in trust for Lender and unless Lender otherwise notifies Manager, will be promptly remitted, in cash or readily available funds, to Lender, properly endorsed to Lender, to be applied to the principal of, interest on and other amounts due under the Loan Documents evidencing and securing the Mortgage Loan in such order and in such manner as Lender shall determine in its sole and absolute discretion.  Manager hereby irrevocably designates, makes, constitutes and appoints Lender (and all persons or entities designated by Lender) as Manager’s true and lawful attorney in fact with power to endorse the name of Manager upon any checks representing payments referred to in this Section 5(b), which power of attorney is coupled with an interest and cannot be revoked, modified or amended without the written consent of Lender;

	
			
	Assignment of Management Agreement
	Form 6405
	Page  4

	Fannie Mae
	01-16
	© 2016 Fannie Mae

(6)    Manager shall notify (via telephone or email, followed by written notice) Lender of Manager’s receipt from any person or entity other than Borrower of a payment with respect to Borrower’s obligations under the Loan Documents, promptly after Manager obtains knowledge of such payment; and
(7)    during the term of this Assignment, Manager will not commence or join with any other creditor in commencing any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings with respect to Borrower, without Lender’s prior written consent.
Section 6.    Lender’s Rights Upon an Event of Default.
(a)    Upon receipt by Manager of written notice from Lender that an Event of Default has occurred and is continuing, Lender shall have the right to exercise all rights as owner of the Mortgaged Property under the Management Agreement.
(b)    Borrower agrees that after Borrower receives notice (or otherwise has actual knowledge) of an Event of Default, it will not make any payment of fees under or pursuant to the Management Agreement without Lender’s prior written consent.
Section 7.    Termination of Management Agreement.
After the occurrence and during the continuance of an Event of Default, Lender (or its nominee) shall have the right any time thereafter to terminate the Management Agreement, without cause and without liability, by giving written notice to Manager of its election to do so.  Lender’s notice shall specify the date of termination, which shall not be less than thirty (30) days after the date of such notice.
Section 8.    Books and Records.
On the effective date of termination of the Management Agreement, Manager shall turn over to Lender all books and records relating to the Mortgaged Property (copies of which may be retained by Manager, at Manager’s expense), together with such authorizations and letters of direction addressed to tenants, suppliers, employees, banks and other parties as Lender may reasonably require.  Manager shall cooperate with Lender in the transfer of management responsibilities to Lender or its designee.  A final accounting of unpaid fees (if any) due to Manager under the Management Agreement shall be made within sixty (60) days after the effective date of termination, but Lender shall not have any liability or obligation to Manager for unpaid fees or other amounts payable under the Management Agreement which accrue before Lender (or its nominee) acquires title to the Mortgaged Property, or Lender becomes a mortgagee in possession.

	
			
	Assignment of Management Agreement
	Form 6405
	Page  5

	Fannie Mae
	01-16
	© 2016 Fannie Mae

Section 9.    Notice.
(a)    Process of Serving Notice.
All notices under this Assignment shall be:
(1)    in writing and shall be:
(A)    delivered, in person;
(B)    mailed, postage prepaid, either by registered or certified delivery, return receipt requested;
(C)    sent by overnight courier; or
(D)    sent by electronic mail with originals to follow by overnight courier;
(2)    addressed to the intended recipient at its respective address set forth at the end of this Assignment; and
(3)    deemed given on the earlier to occur of:
(A)    the date when the notice is received by the addressee; or
(B)    if the recipient refuses or rejects delivery, the date on which the notice is so refused or rejected, as conclusively established by the records of the United States Postal Service or any express courier service.
(b)    Change of Address.
Any party to this Assignment may change the address to which notices intended for it are to be directed by means of notice given to the other parties to this Assignment in accordance with this Section 9.
(c)    Default Method of Notice.
Any required notice under this Assignment which does not specify how notices are to be given shall be given in accordance with this Section 9.
(d)    Receipt of Notices.
Borrower, Manager and Lender shall not refuse or reject delivery of any notice given in accordance with this Assignment.  Each party is required to acknowledge, in writing, the receipt of any notice upon request by the other party.

	
			
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	Form 6405
	Page  6

	Fannie Mae
	01-16
	© 2016 Fannie Mae

Section 10.    Counterparts.
This Assignment may be executed in any number of counterparts, each of which shall be considered an original for all purposes; provided, however, that all such counterparts shall constitute one and the same instrument.
Section 11.    Governing Law; Venue and Consent to Jurisdiction; Waiver of Jury Trial.
(a)    Governing Law.
This Assignment shall be governed by the laws of the jurisdiction in which the Mortgaged Property is located (the “Property Jurisdiction”), without regard to the application of choice of law principles.
(b)    Venue; Consent to Jurisdiction.
Any controversy arising under or in relation to this Assignment shall be litigated exclusively in the Property Jurisdiction without regard to conflicts of laws principles.  The state and federal courts and authorities with jurisdiction in the Property Jurisdiction shall have exclusive jurisdiction over all controversies which shall arise under or in relation to this Assignment.  Borrower irrevocably consents to service, jurisdiction and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise.
(c)    WAIVER OF TRIAL BY JURY.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER, LENDER, AND MANAGER (i) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS ASSIGNMENT, OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER, LENDER, AND MANAGER, THAT IS TRIABLE OF RIGHT BY A JURY, AND (ii) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE.  THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY, WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.
Section 12.    Severability; Amendments.
The invalidity or unenforceability of any provision of this Assignment shall not affect the validity or enforceability of any other provision of this Assignment, all of which shall remain in full force and effect.  This Assignment contains the complete and entire agreement among the parties as to the matters covered, rights granted and the obligations assumed in this Assignment.  This Assignment may not be amended or modified except by written agreement signed by the parties hereto.

	
			
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	Form 6405
	Page  7

	Fannie Mae
	01-16
	© 2016 Fannie Mae

Section 13.    Construction.
(a)    The captions and headings of the sections of this Assignment are for convenience only and shall be disregarded in construing this Assignment.
(b)    Any reference in this Assignment to an “Exhibit” or “Schedule” or a “Section” or an “Article” shall, unless otherwise explicitly provided, be construed as referring, respectively, to an exhibit or schedule attached to this Assignment or to a Section or Article of this Assignment.  All exhibits and schedules attached to or referred to in this Assignment, if any, are incorporated by reference into this Assignment.
(c)    Any reference in this Assignment to a statute or regulation shall be construed as referring to that statute or regulation as amended from time to time.
(d)    Use of the singular in this Assignment includes the plural and use of the plural includes the singular.
(e)    As used in this Assignment, the term “including” means “including, but not limited to” or “including, without limitation,” and is for example only and not a limitation.
(f)    Whenever Borrower’s knowledge is implicated in this Assignment or the phrase “to Borrower’s knowledge” or a similar phrase is used in this Assignment, Borrower’s knowledge or such phrase(s) shall be interpreted to mean to the best of Borrower’s knowledge after reasonable and diligent inquiry and investigation.
(g)    Unless otherwise provided in this Assignment, if Lender’s approval, designation, determination, selection, estimate, action or decision is required, permitted or contemplated hereunder, such approval, designation, determination, selection, estimate, action or decision shall be made in Lender’s sole and absolute discretion.
(h)    All references in this Assignment to a separate instrument or agreement shall include such instrument or agreement as the same may be amended or supplemented from time to time pursuant to the applicable provisions thereof.
(i)    “Lender may” shall mean at Lender’s discretion, but shall not be an obligation.
[Remainder of Page Intentionally Blank]

	
			
	Assignment of Management Agreement
	Form 6405
	Page  8

	Fannie Mae
	01-16
	© 2016 Fannie Mae

IN WITNESS WHEREOF, Borrower, Lender and Manager have signed and delivered this Assignment under seal (where applicable) or have caused this Assignment to be signed and delivered under seal (where applicable), each by its duly authorized representative.  Where applicable law so provides, Borrower, Lender and Manager intend that this Assignment shall be deemed to be signed and delivered as a sealed instrument.
	
				
	BORROWER:
	 

	 
	 
	 
	 

	STAR III BRISTOL VILLAGE, LLC

	a Delaware limited liability company

	 
	 
	 
	 

	By:
	Steadfast Apartment Advisor III, LLC

	 
	a Delaware limited liability company

	 
	its Manager
	 

	 
	 
	 
	 

	 
	By:
	/s/ Kevin Keating
	(SEAL)

	 
	 
	Kevin Keating
	 

	 
	 
	Treasurer
	 

	
				
	Address:
	c/o Steadfast Companies
	 

	 
	18100 Von Karman Avenue, 
	 

	 
	Suite 500
	 
	 

	 
	Irvine, California 92612
	 

	 
	Attention: General Counsel - Ana

	 
	Marie del Rio
	 
	 

	
			
	Assignment of Management Agreement
	Form 6405
	Page S-1

	Fannie Mae
	01-16
	© 2016 Fannie Mae

	
					
	LENDER:
	 
	 

	 
	 
	 
	 
	 

	BERKELEY POINT CAPITAL LLC
	 

	a Delaware limited liability company
	 

	 
	 
	 
	 
	 

	By:
	/s/ Heidi Marrin
	(SEAL)
	 

	 
	Heidi Marrin
	 
	 

	 
	Director
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ Deborah Demoney
	(SEAL)
	 

	 
	Deborah Demoney
	 
	 

	 
	Vice President
	 
	 

	
				
	Address:
	7700 Wisconsin Avenue, Suite 1100

	 
	Bethesda, Maryland 20814

	
			
	Assignment of Management Agreement
	Form 6405
	Page S-2

	Fannie Mae
	01-16
	© 2016 Fannie Mae

	
					
	MANAGER:
	 
	 

	 
	 
	 
	 
	 

	STEADFAST MANAGEMENT COMPANY, INC.

	a California Corporation
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ Ana Marie del Rio
	(SEAL)
	 

	 
	Ana Marie del Rio
	 
	 

	 
	Vice President
	 
	 

	
				
	Address:
	c/o Steadfast Companies
	 

	 
	18100 Von Karman Avenue, 
	 

	 
	Suite 500
	 
	 

	 
	Irvine, California 92612
	 

	 
	Attention: General Counsel - Ana

	 
	Marie del Rio
	 
	 

	
			
	Assignment of Management Agreement
	Form 6405
	Page S-3

	Fannie Mae
	01-16
	© 2016 Fannie MaeExhibit

Amendment No. 1 to Building E Lease

AMENDMENT NO. 1 TO LEASE
This AMENDMENT NO. 1 TO LEASE (“Amendment”) is dated as of this 16th day of September, 2016 (the “Amendment Date”), by and between SANTA CLARA CAMPUS PROPERTY OWNER I LLC, a Delaware limited liability company (“Landlord”) and PALO ALTO NETWORKS, INC., a Delaware corporation (“Tenant”).
RECITALS
A.    Landlord and Tenant entered into that certain Lease dated as of May 28, 2015 (the “Lease”) for premises (as more particularly described in the Lease, the “Leased Premises”) estimated to contain approximately 290,000 rentable square feet of floor area (+/- 5,000 rentable square feet), consisting of the entirety of one (1) building located in the City of Santa Clara, County of Santa Clara, State of California and defined in such Lease as “Building E” and all as more particularly described in the Lease; and  
B.    Landlord and Tenant now desire to amend the Lease on the terms and conditions set forth herein.  
AGREEMENT
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:
1.Definitions.  All capitalized terms used in this Amendment but not otherwise defined shall have the meanings assigned to them in the Lease.  
2.Base Monthly Rent.  The amount of Base Monthly Rent payable under the Lease (and under the Lump Sum Payment Amendment attached as Exhibit F to the Lease) is hereby amended as set forth in this Paragraph 2.  The Base Monthly Rent schedule set forth in Article 1 of the Lease (and in the Lump Sum Payment Amendment) is calculated based upon the Leased Premises containing 290,000 rentable square feet of space, which is subject to measurement as described in the “Leased Premises” definition set forth in Article 1 and adjustment.  Upon final determination of the Base Monthly Rent after such measurement and adjustment, the amount of each Base Monthly Rent payment due pursuant to Article 1 of the Lease (and the Lump Sum Payment Amendment) shall be further adjusted by adding $19,649.75 to each such payment except those payments which would otherwise be zero ($0).
3.Measurement of the Leased Premises.  
(a)    The second sentence of the definition of “Leased Premises” set forth in Article 1 of the Lease is hereby amended by deleting the following clause at the beginning thereof: “Within thirty (30) days after the Lease Commencement Date”.
(b)    The first sentence of Paragraph 2.1(b) of the Lease is hereby amended in its entirety to read as follows:  “The rentable square footage of the Leased Premises shall be re-measured utilizing the BOMA Method at any time after the exterior walls of the Building have been installed, upon not less than five (5) business days’ prior written notice from Landlord to Tenant.”
(c)    For purposes of clarification, the BOMA Method will measure the Gross Building Area, and references in the Lease to “rentable square footage” resulting from the re-measurement 

1

Amendment No. 1 to Building E Lease

of the Leased Premises pursuant to Paragraph 2.1(b) of the Lease shall be deemed to refer to such Gross Building Area.   
4.Landlord’s Work.  The Work Letter is hereby amended by deleting Exhibit A-1 attached thereto and replacing it with Exhibit A-1 attached to this Amendment.  In addition, the Final Base Building Plans as defined in Paragraph 1 of the Work Letter are listed on Schedule 1 attached to this Amendment.  Schedule 1 also contains certain plans for elements of Landlord’s Work which do not require City approval.  In the event of a conflict between Exhibit A-1 attached to this Amendment (on the one hand) and Schedule 1 (on the other), Schedule 1 shall control; provided, however, that the allocations of responsibility between Landlord and Tenant for construction of various items listed on Exhibit A-1 shall control over Schedule 1 in the event of a conflict relating thereto.
5.Delivery Date.  
(a)    Paragraph 2.3 and Paragraphs 2.4(a) and (b) of the Lease are hereby amended to delete the date of “November 1, 2016” therein and replace it with “December 1, 2016.”
(b)    In no event shall the Delivery Date pursuant to the Lease occur prior to December 1, 2016.
(c)    Notwithstanding any other provision of this Amendment or the Lease (including the exhibits and attachments thereto), any item identified on Exhibit A-1 or Schedule 1 attached to this Amendment as being part of the Tenant Improvements (the “Tenant Improvement Items”) shall not be included within Landlord’s Work for any reason, including for purposes of Landlord’s obligations to deliver Building in the Required Delivery Condition or the Leased Premises Substantially Complete.  Without limiting the foregoing or the applicability of Tenant Delay, if Landlord is unable to satisfy any requirement set forth in any of clauses (i) through (iii) of Paragraph 2.4(a) or clauses (i) through (vii) of Paragraph 2.4(c) of the Lease at a point in time (the “Relevant Time”) due solely to the failure of any Tenant Improvement Items to then be completed, Landlord shall be excused from having to satisfy such requirement, to the extent prevented from doing so by such failure, until the applicable Tenant Improvement Item has been completed, and for purposes of determining the date on which the Building was delivered in the Required Delivery Condition or the Leased Premises were delivered Substantially Complete, such date shall be deemed to have occurred at the Relevant Time.
6.Lease Commencement Date.  Tenant hereby exercises its right pursuant to Paragraph 2.3 of the Lease to extend the Lease Commencement Date for an additional sixty (60) days.  Accordingly, Landlord and Tenant agree that the reference to “six (6) months” in Paragraph 2.3 of the Lease is hereby deleted and replaced with “eight (8) months”.  Tenant acknowledges that Tenant has no further right to extend the Lease Commencement Date pursuant to the last sentence of Paragraph 2.3 of the Lease.
7.Condition Precedent To Lease Amendment. Landlord’s obligations hereunder are subject to the receipt by Landlord, no later than fifteen (15) business days after the date hereof, of the Lender’s Consent, as hereinafter defined.  Landlord hereby agrees to use diligent efforts to obtain the Lender’s Consent by such date; however, if Landlord does not receive the Lender’s Consent by such date, this Amendment shall, at Landlord’s option, thereupon be deemed terminated and of no further force or effect, and neither party shall have any further rights, obligations, or liabilities hereunder.  As used herein, the term “Lender’s Consent” means a written consent to this Amendment, in form reasonably satisfactory to Landlord, executed by the holder of the promissory note secured by any deed of trust encumbering the fee interest in the real property of which the Leased Premises are a part.

2

Amendment No. 1 to Building E Lease

8.Ratification.  The Lease, as amended by this Amendment, is hereby ratified by Landlord and Tenant and Landlord and Tenant hereby agree that the Lease, as so amended, shall continue in full force and effect.
9.Miscellaneous.
9.1    Voluntary Agreement.  The parties have read this Amendment and the mutual releases contained in it, and on the advice of counsel they have freely and voluntarily entered into this Amendment.
9.2    Attorney’s Fees.  If either party commences an action against the other party arising out of or in connection with this Amendment, the prevailing party shall be entitled to recover from the non-prevailing party, reasonable attorney’s fees and costs of suit.
9.3    Successors.  This Amendment shall be binding on and inure to the benefit of the parties and their successors.
9.4    Counterparts.  This Amendment may be signed in two or more counterparts.  When at least one such counterpart has been signed by each party, this Amendment shall be deemed to have been fully executed, each counterpart shall be deemed to be an original, and all counterparts shall be deemed to be one and the same agreement.
[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

3

Amendment No. 1 to Building E Lease

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

PALO ALTO NETWORKS, INC. , a Delaware corporation

By:  /s/ Mark D. McLaughlin
Printed Name: Mark D. McLaughlin
Title: Chief Executive Officer

By: /s/ Steffan Tomlinson
Printed Name: Steffan Tomlinson
Title:  Chief Financial Officer

	 
	

	 
	LANDLORD:

SANTA CLARA CAMPUS PROPERTY OWNER I LLC, a Delaware limited liability company

	 
	By:   Santa Clara Phase III REIT LLC, 
             a Delaware limited liability company,
             its Sole Member

             By:   Santa Clara Campus Partners LLC, 
                         a Delaware limited liability company,
                         its Manager

                         By:   Menlo Equities Development Company IX                             
                                     LLC,
                                      a California limited liability company,
                                      its Manager

                                      By:   Menlo Equities V LLC,
                                                  a California limited liability company,
                                                  its Manager

                                                  By:   Menlo Legacy Holdings,                  
                                                               L.P., a California limited  
                                                               partnership,
                                                               its Managing Member

                                                         By: /s/ Henry D. Bullock
                                                                     Henry D. Bullock, President

	 
	 

4

SCHEDULE 1
LIST OF PLANS

	
			
	FINAL BASE BUILDING PLANS

	BUILDING E/PAN 1 - 3000 TANNERY WAY

	Issuance
	Issuance Description
	Date

	-
	Issue for Construction
	3/22/16

	Delta #7
	Revisions #4
	5/25/16

	-
	Master Sign Program - Planning Submittal
	7/12/16

	P1 GARAGE - 2910 TANNERY WAY

	Issuance
	Issuance Description
	Date

	-
	Construction Set
	2/5/16

	Delta #2
	EV Updates
	6/20/16

5

EXHIBIT A-1 TO WORK LETTER
The Campus@3333 Scott
Landlord's Warm Shell
8-Story Base Building & Core
(Restrooms, Stairwells, HVAC, Elevators, Electrical/MPOE)

GENERAL DESCRIPTION: Landlord's shell and core will comply with all codes and regulations, including fire, building, Title 24 and ADA. Building will be LEED Silver.  The Approved Plans include the following:

		
	•
	The building is a steel frame structure with glass, metal and thin-shell concrete window wall system.  

		
	•
	Interior brace frames with exterior moment frames.  

		
	•
	Glass/metal frame entry doors.  

		
	•
	Roof screen is included.   

		
	•
	15’ floor-to-floor clearance on ground floor and 14’ on upper floors to allow for an 11’+/- ceiling height on the ground floor and a 10’ +/- finished ceiling on the upper floors.

		
	•
	Three stairs.  Center stair to be open between floors 1-4 and floors 5-8.

		
	•
	15mil Stego vapor barrier installed under building slabs. 

		
	•
	Ground floor and upper floor elevator lobbies to be completed by Tenant as part of TIs.

CONCRETE FLOORS

		
	•
	Floor flatness/levelness consistent with ASTM E1155/E 1155M.

		
	•
	The floors will be designed for structural loading capability that can accommodate the placement of furnishings, fixtures and equipment that is consistent with the needs of a typical office tenant (live load of 100psf).

EXTERIOR GLASS

		
	•
	Exterior glass Title 24 compliant, insulated, free from scratches, nicks, cracks, marring and the intrusion of weather.  

ELEVATORS 

		
	•
	One 4,000lb and four 3,500lb capacity Mitsubishi Electric traction passenger elevator with a rated speed of 350fpm provided.  

		
	•
	Center opening doors with 9’-3” cab finished ceiling height.  

		
	•
	Finished interior cabs, except floors, which will be finished by Tenant to match Tenant’s ground floor lobby.

		
	•
	All elevator cars, lobby call lanterns and call buttons in compliance with all codes and regulations.

		
	•
	No freight elevator provided.

		
	•
	Two-stop dumbwaiter.

		
	•
	No elevator cars security card readers; part of TIs.  

PERIMETER CONDITIONS AND BUILDING CORE (Landlord installed restrooms, elevators, stairwells and electrical rooms) 

		
	•
	Lights, finished walls, ceiling and floor tile provided in restrooms and exit corridors only; lights and unfinished walls in electrical rooms. Toilet exhaust at restrooms included. IT closets are part of TI construction except ground floor MPOE room.  

		
	•
	Code required exit stairwells with painted walls, finished ceilings, handrails, lights and noise reducing epoxy sealed floors stairs and landings  The center stairwell is open with exposed steel and cable railings; additional finishes installed by Tenant with TIs.

		
	•
	Exposed window wall system.  Completed window assembly with painted metal frames.  

		
	•
	Exterior building envelope insulation as per Title 24, roof insulation and firesafing are included.   No drywall is included except in the core areas. Core walls are framed, drywalled and fire taped finish.  

		
	•
	Code compliant paint grade finished wood and metal doors, complete with frame, trim and hardware, installed at all stairwells, toilet rooms and service areas.  Finish mutually agreed to by Tenant and Landlord. 

6

		
	•
	Intumescent paint in lieu of fireproofing on steel beams/columns and center open stairwell, mutually agreed to by Landlord and Tenant.

PERIMETER WINDOW COVERINGS

Tenant shall install window blinds and/or shades as part of TIs, subject to Landlord approval.

TOILET ROOMS 

		
	•
	Women's and men's toilet rooms designed and constructed in compliance with current code requirements, laws and recommendations for size and quantity, including the Americans with Disabilities Act/Title 24, except that (1) Landlord will provide two additional toilet stalls and one additional sink per restroom and (2) the 2nd floor restrooms shall be designed and installed by Tenant.  The design and finish,  mutually approved by Landlord and Tenant, include the following: 

		
	o
	Water (hot and cold) shall be provided for all toilet rooms.

		
	o
	Lavatory counters shall have high quality solid surface tops with recessed lavatories. 

		
	o
	All faucets shall have auto-sensors.

		
	o
	Code required wet walls shall be finished with full height ceramic tile. 

		
	o
	Includes floor drains.

		
	o
	The ceilings shall be painted with semi-gloss paint.

		
	o
	Toilet partitions shall be floor mounted; baked enamel or P-lam.

		
	o
	Urinal partitions shall be wall mounted. 

		
	o
	Low flow toilets and urinals shall be wall mounted in all restrooms.

		
	o
	Code compliant lighting only.

		
	•
	All fixtures are porcelain and ADA compliant. 

		
	•
	Accessories include:

		
	o
	Recessed seat cover dispenser

		
	o
	Recessed paper towel dispenser/waste receptacles

		
	o
	Recessed feminine napkin vendor

		
	o
	Recessed mounted roll toilet tissue dispensers

		
	o
	Handicap grab bar as required by code

		
	o
	Lavatory soap dispensers

WASTE WATER AND VENT SYSTEM (PLUMBING) 

		
	•
	One cold water line, two hot water lines, a sanitary waste and vent on every floor for Tenant's use, size to be mutually determined.  All plumbing required for TIs, including any break areas, to be installed by Tenant as part of TIs. 

		
	•
	An ADA accessible drinking water refrigerated fountain installed on each floor.  Domestic water booster pump, if required. 

		
	•
	Underslab plumbing to support TIs, mutually agreed by Landlord and Tenant.

		
	•
	Underground grease interceptor (1,000gal).

HVAC SYSTEM

		
	•
	Built-up HVAC system: 760 tons of cooling with two rooftop chillers and two cooling towers, suitable for standard office use.

		
	•
	Supply and exhaust ductwork and air outlets for warm shell “core” areas installed by Landlord.

		
	•
	Rooftop boilers and hot water line vertically distributed and valved to each floor included.

		
	•
	Stairwell pressurization fans with vertical distribution as required to meet code.

		
	•
	Fire/smoke control system inclusive of smoke removal fans, damper and overriding controls at fire control room. 

		
	•
	Tenant to install all additional exhaust and HVAC systems related to TIs, including connecting to the base building energy management system.

7

SUPPLEMENTAL and 24 hour HVAC

		
	•
	Supplied by Tenant in TI construction.  Landlord to provide a rooftop equipment pad within Landlord’s roof screen area for Tenant’s supplemental HVAC units or other equipment.

ELECTRICAL AND POWER SYSTEM 

		
	•
	12KV primary service with 3,000amps for typical office use.

		
	•
	Normal power distribution system with vertical bus duct riser feeding lighting and power bus circuit breakers at each floor and rooftop HVAC. 

		
	•
	Emergency distribution system consisting of standby generator, distribution board at ground floor with life safety and legally required automatic transfer switches, distribution boards and feeders. 

		
	•
	Step-down transformers in electrical rooms on all upper floors provided.

		
	•
	Landlord to provide switchgear and panels in the main electrical room sufficient to distribute power to accommodate the core, landscape lighting, HVAC, elevators and fire alarm. 

		
	•
	Power and lighting per 2013 Title 24 Requirements

		
	•
	Receptacles provided in the Landlord installed restrooms and exit corridors. 

		
	•
	Downlights and specialty lighting provided in the Landlord installed restrooms and stairs.   

		
	•
	Each building is to be separately metered.  Landlord will coordinate with the utility companies to have meter installed at Landlord’s cost.  

		
	•
	Landlord to upsize the 1,250KW code required emergency generator for Buildings E and F to 1,500KW for Tenant’s use.  

		
	•
	No Backup Power Supply supplied by Landlord.  

		
	•
	Emergency supply and exhaust fan service.

		
	•
	Emergency elevator service.

		
	•
	Emergency fire pump and tank per code.

		
	•
	Egress lighting to be fed by generator. 

		
	•
	DAS system.

FIRE & LIFE SAFETY SYSTEMS

		
	•
	Major fire line throughout the building with sprinkler heads pointing up in unfinished interior space.  Complete sprinkler assembly in Landlord installed restrooms and stairwells.  Fire monitoring system for base building with core; adequately sized to allow tenant to expand as part of TIs.

		
	•
	Includes fire pump and water tanks, per code. 

		
	•
	Monitoring provided for sprinklers, elevators and HVAC base building and core systems per code.  Tenant to expand monitoring for TI.   

		
	•
	Landlord to provide required Fire/Life Safety systems per code. 

SECURITY ACCESS SYSTEMS

		
	•
	None provided.  Supplied by Tenant in TI construction if desired by Tenant.  Landlord to provide rough-in provisions at locations requested by Tenant.

TELECOMMUNICATION

		
	•
	Landlord will provide four 4” conduits into the ground floor MPOE room in each building from central underground telecom vaults on site which all service providers can access.

		
	•
	Tenant is responsible for distribution of its teledata/IT from the MPOE/IDF rooms to rest of the building.

		
	•
	Landlord will provide roof top space and conduit from the IDF room for Tenant's satellite dish.  Tenant is responsible for installing its satellite dish.

PARKING

		
	•
	Landlord is to install all surface parking and Parking Structure-P1 as shown on the Approved Plans, excluding Parking Structure-P2 and surface parking surrounding Parking Structure-P2 and Building G.

8

LANDSCAPE

		
	•
	Landlord is to provide landscape and hardscape at all common areas as shown on the Approved Plans, including added electrical and AV mutually agreed upon by Landlord and Tenant, but expressly excluding landscaping and hardscaping surrounding Building G and Parking Structure-P2.

		
	•
	Bike storage areas will be provided in Parking Structure-P1.

		
	•
	The landscaped areas are to be planted such that areas containing flowers shall mature within one year of initial occupancy.  Areas planted with shrubs and trees shall mature within two years of initial occupancy.  

		
	•
	All landscaped path of pedestrian travel areas to be lighted and irrigated with electrically controlled automatic systems.

LOADING DOCK

		
	•
	No trash compactors.  

ELECTRIC VEHICLE STATIONS

		
	•
	Conduit from Parking Structure-P1 electrical room to 187 dual EV stations (374 parking spaces) in P1 North and 100 dual EV stations (200 parking spaces) in P1 South. 

		
	•
	Installation of 50 dual EV stations (supplied by Tenant) or 100 EV spaces in Parking Structure-P1 North (in each case half of which belong to and are allocated to Building E and half of which belong to and are allocated to Building F). Transformer and electrical panel breakers sized for 100 dual EV stations to allow for an additional 100 EV spaces to be installed by Tenant in the future (in each case half of which belong to and are allocated to Building E and half of which belong to and are allocated to Building F).

		
	•
	Installation of 100 dual EV stations (supplied by Landlord) or 200 EV spaces in Parking Structure-P1 South.

9

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