Document:

Sublease Agreement

 EXHIBIT 10.1 
 SUBLEASE AGREEMENT 
 Parties. This Sublease Agreement
(“Sublease”) is entered into as of the          day of
                     2008, by and between Kovio Inc. (“Subtenant”), and Exar Corporation, hereinafter
(“Tenant”), under that certain Standard Form Lease dated March 9th 2006 (“Master Lease”) entered into with Mission West Properties L.P. as Lessor (“Master Lessor”). A copy of
the Master Lease, with amendments, is attached hereto, marked Exhibit “A”, and incorporated herein by reference. 
 Basic Sublease Information (Defined Terms) 
  

			
	Effective Date:	  	The date of last execution by Tenant and Subtenant
		
	Landlord:	  	Mission West Properties L.P
		
	Tenant:	  	Exar Corporation, a Delaware Corporation
		
	Tenant’s Address:	  	48720 Kato Road, Fremont CA 94538
		
	Property:	  	Improved real property as more particularly described in Exhibit “A” of the Master Lease, including one single-story 58,607 square foot building
(“Building One”), one 2-story 35,208 square foot building (“Building Two”), and a lobby consisting of 1,875 square feet (“Lobby”) for a total of 95,690 square feet of building
with all improvements thereto, located at 233 South Hillview Drive, Milpitas, California
		
	Subtenant:	  	Kovio Inc., a Delaware corporation
		
	Subtenant’s Address:	  	1145 Sonora Court, Sunnyvale, CA 94086; pending move to Sublease Premises; thereafter, Sublease Premises
		
	Sublease Premises:	  	Building One , Building Two and the Lobby, with all improvements thereto as set forth in Exhibit “B”, attached hereto and incorporated herein, together with the
exclusive right to use those common areas within the Property identified therein.
		
	Sublease Premises Address:	  	233 South Hillview Drive, Milpitas, California
		
	Sublease Term:	  	The term of this Sublease shall be for a period commencing on the expiration of the Early Entry Period (as defined in Section 4) and ending on March 31st 2011.
		
	Commencement Date:	  	The day following the expiration of the “Early Entry Period”
		
	Rent Commencement Date:	  	April 15, 2008

  

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	Expiration Date:	  	March 31st, 2011

  

												
	Monthly Base Rent:	  	 Period
	  	Building
One	  	Building
Two	  	Total
	  	Effective Date through Rent Commencement Date	  	$	0.00	  	$	0.00	  	$	0.00
	  	Rent Commencement Date through Month 12	  	$	58,607.00	  	$	59,091.70	  	$	117,698.70
	  	Month 13 through Month 24	  	$	64,467.70	  	$	53,231.00	  	$	117,698.70
	  	Month 25 through Expiration Date	  	$	73,844.82	  	$	43,853.88	  	$	117,698.70

  

			
	Subtenant’s Security Deposit:	  	$135,479.68, which amount is included in the Letter of Credit described in Section 17
		
	 Subtenant’s Share /
 Occupied Space:

	  	100.0% of Property
		
	Parking Area:	  	Subtenant shall have the exclusive right to use the designated spaces serving the Property.
		
	Exhibits:	  	Schedule 4 - Restart Matrix
		  	Schedule 5 - Tenant Work
		  	Exhibit A - Master Lease
		  	Exhibit B – Improvements
		  	Exhibit C - Furnishing Inventory
		  	Exhibit D - Subtenant’s Planned Initial Alterations
		  	Exhibit E – Tenant’s Hazardous Materials Reports
		  	Exhibit F - Subtenant’s Hazardous Materials
		  	Exhibit G - Letter of Credit
		  	Exhibit H - Master Lessor Consent-

  

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 THIS SUBLEASE is entered as of the Effective Date by and between Tenant and Subtenant. 

THE PARTIES ENTER this Sublease on the basis of the following facts, understandings and intentions: 
 A. Tenant is presently the sole tenant of the Property pursuant to the Master Lease by and between Master Lessor and Tenant. A copy of the Master
Lease is attached hereto as Exhibit “A”. 
 B. Tenant desires to sublease the Sublease Premises to
Subtenant and Subtenant desires to sublease the Sublease Premises from Tenant on all of the terms, covenants and conditions hereinafter set forth. 
 C. All of the terms and definitions in the Defined Terms section of this Sublease are incorporated herein by this reference. All capitalized terms used in this Sublease and not otherwise defined in this Sublease have the same meaning
as in the Master Lease. 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the parties, the parties hereto
agree as follows: 
 1. (a) Sublease. Tenant hereby subleases to Subtenant, and Subtenant hereby subleases from Tenant, the Sublease Premises for the
Sublease Term, beginning on the Commencement Date and ending on the Expiration Date, upon all of the terms, covenants and conditions herein contained. In addition, Tenant shall lease to Subtenant, and Subtenant shall lease from Tenant, any and all
permanent improvements (“Improvements”) on the Sublease Premises constructed and/or owned by Tenant as described on Exhibit “B” attached hereto, upon all of the terms, covenants and conditions
herein contained and set forth in the Master Lease. 
 (b) Lease of Furnishings. Included as part of the Sublease Premises are those
items of furniture and personal property listed on the inventory, attached as and incorporated herein as Exhibit “C” (the “Furnishing Inventory”). With respect to the Furnishing Inventory, and in
addition to any obligations with respect to the Sublease Premises generally, Subtenant agrees: (i) that Subtenant shall not remove any Furnishing Inventory from the Sublease Premises without the prior written consent of Tenant;
(ii) Subtenant shall be responsible for all loss or damage to the Furnishing Inventory during the Term; and (iii) all Furnishing Inventory shall be surrendered to Tenant at the end of the Term in good condition and repair. Notwithstanding
the foregoing, provided Subtenant is not otherwise in default under this Sublease, Subtenant shall have the right to purchase those items identified on Exhibit “C” as “Building One Furniture” at the end
of the Sublease Term for a purchase price of $1.00, by providing written notice to Tenant and delivering such purchase price prior to the Expiration Date or earlier termination of this Sublease. 
 2. Permitted Use. The uses permitted shall be for general office, research & development, sales, product testing, semiconductor fabrication, storage and
all other legal uses related to the foregoing. Subtenant shall in no event use the Sublease Premises in violation of the terms of the Master Lease. 
 3.
Advance Rent. Upon the execution of the Sublease, Subtenant shall pay to Tenant the first month’s Rent due under the Sublease. 
 4. Start
Up Period and Early Entry Period. In order to determine that the technical fixtures and building systems described on Schedule 4 (“Start Up Systems”) are functional, Tenant shall be responsible at its cost,
to operate the Start Up Systems as detailed on Schedule 4 and to perform required repairs or replacement of any items that are not functional, with such work to be commenced within seven 

  

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(7) days following the Effective Date and completed by the dates indicated on Schedule 4. Additionally, Tenant shall repair any item that fails
to function during the Run Time Period specified for such item on Schedule 4 following the date such item is made functional. Tenant shall deliver to Subtenant at least two days prior notice of the date that the material work required on
Schedule 4 (“Start Up Work”) has been substantially completed and Tenant shall deliver the Sublease Premises to Subtenant on substantial completion of the Start Up Work. The period beginning with the date set
out on Schedule 4 and ending on the substantial completion of the Start Up work is described as the “Start Up Period.” The parties anticipate that the Start Up Period will end on approximately February 1, 2008,
provided the Start Up Period shall not be extended so long as the work on the material systems is substantially complete and Tenant shall be permitted to finish any required repairs during the Early Entry Period. For a period of seventy-five
(75) days commencing upon the day following the expiration of the Start Up Period (“Early Entry Period”), Subtenant, its vendors, consultants, contractors and agents shall be allowed early access to” (a) the
“Fab” portion of the Sublease Premises for fit up of the Fab portion of the Sublease Premises, and (b) the balance of the Sublease Premises for installation of Subtenant’s Alterations and data and communications equipment, such
access being subject to all provisions of this Sublease. 
 5. Condition of Sublease Premises. Except as provided herein, on the Commencement Date
Tenant shall deliver the Sublease Premises (including the Furnishing Inventory) to Subtenant in its existing “AS IS” “WHERE IS” condition without any representation or warranty. Subtenant acknowledges that Subtenant has conducted
Subtenant’s own investigation of the Sublease Premises, the physical condition thereof, including location of utilities, improvements, and such other matters which in Subtenant’s judgment affect or influence Subtenant’s use and
suitability of the Sublease Premises, including the existence of Hazardous Materials (as defined in Section 15.2 below) within the Sublease Premises. On or about February 1, 2008, Subtenant and Tenant shall conduct and videotape a
walkthrough inspection of the Sublease Premises to establish the condition of the Sublease Premises and the Furnishing Inventory as of the expiration of the Start Up Period. The condition of the Sublease Premises at such time, including any repairs
performed by Tenant pursuant to Section 4 above shall establish the baseline condition of the Sublease Premises (the “Existing Condition”). Tenant and Subtenant shall split the cost of such videotape equally. Subtenant
recognizes and agrees that, except as expressly provided herein, neither Tenant nor Master Lessor has made any representations of any kind in connection with improvements or physical conditions on, or bearing on, the use of the Sublease Premises.
Subtenant further recognizes and agrees that except as expressly provided herein or on Schedule 5 attached hereto, neither Master Lessor nor Tenant shall be required to perform any work of construction, alteration or maintenance of or
to the Sublease Premises. 
 6. Rent. 
 6.1 Base Rent. Upon execution hereof, Subtenant shall deliver the Advance Rent to Tenant. In addition, beginning on the month that is the second full calendar month following the Rent Commencement Date, Subtenant shall and thereafter
pay a monthly rent in the amount of the Base Rent in advance, on the first day of each month of the term hereof, to Tenant. In the event the Rent Commencement Date is not the first day of a calendar month or the last day of the Sublease Term is not
the last day of the calendar month, the Base Rent shall be appropriately prorated based on a thirty (30) day month. All installments of Base Rent shall be delivered to Exar Corporation at 48720 Kato Road, Fremont, California 94538, Attention:
Accounts Receivable, or at such other place as may be designated in writing from time to time by Tenant, in lawful money of the United States and without deduction, abatement or offset for any cause whatsoever. 
 6.2 Additional Rent. Commencing on the Rent Commencement Date, Subtenant shall be responsible for, and shall reimburse Tenant for Subtenant’s
Share of storm drain cleaning for the Property; any management fees Tenant pays to Landlord pursuant to the Master Lease; and any costs that 

  

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Tenant incurs with regard to its performance of activities described in Master Lease Sections 5(B)(3) and 5(B)(5), real property taxes, and insurance that
Tenant is required to maintain pursuant to the Master Lease. 
 For purposes of this Sublease, any amounts payable by Subtenant hereunder, in addition to and
at the same time as the Base Rent, is referred to collectively as “Additional Rent”. Within thirty (30) days of the Commencement Date, and thereafter at least thirty (30) days prior to the commencement of each
calendar year during the Term, or as soon thereafter as commercially practicable, Tenant shall furnish Subtenant with a written statement setting forth the estimated monthly Additional Rent for such calendar year (or partial year, as the case may
be) (the “Estimated Costs”). Subtenant shall include the monthly Estimated Costs with its monthly payment of Base Rent. Within ninety (90) days after the close of each calendar year, or as soon thereafter as commercially
practicable, Tenant shall deliver to Subtenant a written statement setting forth the actual costs of items included as Additional Rent, during that calendar year (the “Actual Costs”). If the Actual Costs exceed the Estimated
Costs paid by Subtenant to Tenant for such calendar year, Subtenant shall pay to Tenant such excess within ten (10) days after receipt of such statement. If the statement shows such Actual Costs to be less than the Estimated Costs, then Tenant
shall credit the difference against Additional Rent due for the calendar months next following receipt of Tenant’s written statement, or within thirty days after the term expiration (subject to any delay in Tenant’s receipt of any
reimbursement therefor that Tenant is entitled to from Master Lessor) refund the difference to Subtenant if the term has expired. 
 6.3
Late Charges. Subtenant agrees that if Base Rent, Additional Rent or any other payment due hereunder from Subtenant to Tenant (collectively, “Rent”) remains unpaid five (5) days after said amount is due, the amount
of such unpaid Rent or other payment shall be increased by a late charge to be paid to Tenant by Subtenant in an amount equal to five percent (5%) of the amount of the delinquent Rent or other payment, provided, however, that on the first
occasion in any calendar year that Subtenant is delinquent in payment of Base Monthly Rent or Additional Rent, Tenant shall give Subtenant written notice thereof, and no late charge will be payable so long as Subtenant pays such past-due amount
within three (3) days thereafter). The amount of the late charge to be paid to Tenant by Subtenant for any month shall be computed on the aggregate amount of delinquent Rent and other payments, including all accrued late charges, then
outstanding. Subtenant agrees that such amount is a reasonable estimate of the loss and expense to be suffered by Tenant as a result of such late payment by Subtenant and may be charged by Tenant to defray such loss and expense.  

7. Sublease Subject to Master Lease. 
 7.1
Inclusions. Subtenant agrees that all of the terms, conditions, obligations, rights and covenants of this Sublease shall be those stated in the Master Lease (which is incorporated herein), to the extent such terms, conditions, obligations,
rights and covenants are applicable only to the Sublease Premises, subject to the following: 
 (a) Section 1.1 of the Master Lease - Parties,
is not incorporated herein; 
 (b) Section 1.3 of the Master Lease - Premises, is not incorporated herein; 
 (c) Section 1.5 of the Master Lease - Term, is not incorporated herein; 
 (d) Section 1.6 of the Master Lease - Rent, is not incorporated herein; 
 (e) Section 1.7 of the Master
Lease - Security Deposit, is not incorporated herein; 
  

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 (f) Section 1.8 of the Master Lease - Common Area Costs, is incorporated herein, except as to
estimates of such CAC and as modified by Section 6.2 and 8 of this Sublease and except that Tenant shall not be entitled to charge any management fees (provided Subtenant shall reimburse Tenant for Subtenant’s Share of any Master Landlord
management fees); 
 (g) Section 1.9 of the Master Lease - Late Charges, is not incorporated herein; 
 (h) Section 2.1 of the Master Lease - Acceptance of Premises and Covenants to Surrender, is not incorporated herein; 
 (i) Section 5(a) of the Master Lease is not incorporated herein and Section 5(b) of the Master Lease is incorporated herein, as modified by
Sections 6.2 and 8 hereof as to the division of responsibilities between Tenant and Subtenant; 
 (j) Section 25 of the Master
Lease-Holding Over, is not incorporated herein; 
 (k) Section 34 of the Master Lease - Brokers, is not incorporated herein; 

(l) Section 35 of the Master Lease - Option To Extend, is not incorporated herein. The following provisions of the Master Lease are incorporated
with the revisions set out below: 
 Except as provided above, whenever the word “Premises” is used in the Master Lease, for purposes of this
Sublease, the word “Sublease Premises” shall be substituted. Subtenant shall be subject to, bound by and agrees to strictly comply with all terms, conditions, obligations, rights and covenants of the Master Lease that are incorporated
herein with respect to the Sublease Premises (“Incorporated Master Lease”), and shall satisfy and perform all applicable terms, conditions, obligations, rights and covenants of the Incorporated Master Lease for the benefit of
both Tenant and Master Lessor, it being understood and agreed that for purposes of incorporation of the Master Lease into this Sublease, wherever in the Master Lease the word “Tenant” appears, for the purposes of this Sublease, the word
“Subtenant” shall be substituted, and wherever the word “Landlord” appears, for the purposes of this Sublease, the word “Tenant” shall be substituted; and that upon the breach of any of said terms, conditions,
obligations, rights or covenants of the Incorporated Master Lease by Subtenant or upon the failure of Subtenant to pay Base Rent, Additional Rent or comply with any of the provisions of this Sublease or Incorporated Master Lease, Tenant may exercise
any and all rights and remedies granted to Master Lessor by and under the Incorporated Master Lease, including without limitation the remedies set forth in Section 14 of the Incorporated Master Lease. However, any right to extend the Master
Lease is personal to Tenant and Subtenant shall not be afforded such right. In the event of any conflict between this Sublease and the Incorporated Master Lease, the terms of this Sublease shall control. 
 8. Repairs and Alterations. 
 8.1 Subtenant’s
Repair Obligations. Subtenant shall, at its sole cost and expense keep, repair and maintain the interior of the Sublease Premises in Good Condition and Repair, including, but not limited to, the interior walls and floors of all offices and other
interior areas, doors and door closures, all lighting systems, temperature control systems, plumbing systems, and the existing approximately 20,000 square foot clean room, including any Required Replacements. Subtenant shall provide interior and
exterior window washing as needed. Subtenant shall also perform, at its sole cost and expense, any required maintenance set forth in Section 5(b) of the Master Lease that is not charged to Subtenant pursuant to Section 6.2 of this
Sublease. If Subtenant fails to make any repairs to the Sublease Premises within 30 days after notice from Tenant (although notice shall not be required if there is an emergency), Tenant may make the maintenance or repairs, and Subtenant shall pay
the reasonable cost of the repairs to 

  

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Tenant within thirty (30) days after receipt of an invoice, together with an administrative charge in an amount equal to 10% of the cost of the repairs.
Subtenant shall obtain and keep in force during the Sublease Term maintenance contracts for all HVAC and processing systems for which Subtenant is responsible, and shall provide copies of all such contracts to Tenant, provided Subtenant may perform
such maintenance and repairs itself so long as Subtenant employs qualified personnel to perform such work and Master Lessor consents thereto. 
 8.2. Alterations. Subtenant shall only be permitted to make alterations and improvements (“Alterations”) to the Sublease Premises in accordance with the terms of Section 4 of the Master Lease, subject to
Tenant’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. If Subtenant obtains Master Lessor’s approval of any Alterations to the Sublease Premises, Tenant’s consent shall not be
required provided Master Lessor releases Tenant from any and all liability associated with such Alterations. Tenant’s approval of an Alteration (including as set forth in this Section 8.2) shall not be a representation by Tenant that the
Alteration complies with all applicable Requirements or will be adequate for Subtenant’s use. Notwithstanding anything to the contrary contained herein, Subtenant’s obligation to repair any damage caused by its removal of Subtenant’s
trade fixtures, equipment, personal property and Alterations from the Sublease Premises shall extend only to restore to the Existing Condition, and, provided Master Lessor releases Tenant from any and all liability associated with such Alterations,
Subtenant shall only be obligated to make such repairs to the extent Master Lessor requires the repairs. If Subtenant remains in the Sublease Premises with Landlord’s consent following Lease termination, Subtenant shall be relieved of any
obligations to remove any items from the Sublease Premises on termination; provided, however, Subtenant shall remain financially liable to Tenant for the cost to return the Sublease Premises to the Existing Condition in the event that Tenant is held
financially responsible to Master Lessor for returning the Property to Master Lessor in the condition set forth in the Master Lease. Subject to Master Lessor consent, Tenant hereby approves the following Alterations by Subtenant: 
 (a) Construction of offices and improvements shown on Exhibit “D” hereto; 
 (b) Installation of data and telephone communications cabling and equipment; and 
 (c) Installation of Subtenant’s manufacturing equipment. 
 8.3 Tenant Repair Obligations. Tenant shall perform the maintenance and repair obligations for which Subtenant is charged pursuant to Section 6.2 of this Sublease to the extent such maintenance is not
performed by Master Lessor, subject to reimbursement by Subtenant in accordance with Section 6.2. 
 9. Utilities, Services and Repairs.

 9.1 Utilities. Commencing on February 1, 2008, Subtenant shall be solely responsible for the cost of all gas, electric,
water and other utilities and shall promptly pay the utility provider directly. 
 9.2 Janitorial and Maintenance Services. Subtenant
shall provide janitorial services for the Sublease Premises. Subtenant will be responsible for all costs of refuse facilities and disposal at the Sublease Premises. Any third party service engaged by Subtenant to provide any services in the Sublease
Premises shall be bonded and insured. 
 9.3 Telecommunications and Data Services. Subject to any required consent pursuant to
Section 8.2 hereof, Subtenant shall be solely responsible for the installation of telecommunications and data communications cabling and equipment servicing the Sublease Premises, provided, however, that 

  

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Subtenant may utilize existing and unused cabling located in the Sublease Premises for such purposes. Subtenant shall be solely responsible for the costs of
such additional cabling and ongoing services to the Sublease Premises. 
 9.4 Intentionally Deleted. 
 9.5 Clean Room Floor. Tenant has obtained an estimate for repairing damage identified on the clean room floor and replacing floor covering as
necessary (“Repair Estimate”). Tenant shall cause such repairs to be completed at Tenant’s cost. 
 9.6 Spec
Gas Cabinets and Inactive Lines. Tenant shall seek Master Lessor’s consent to the removal of the spec gas cabinets and inactive lines in the Sublease Premises. If Master Lessor consents to removal of the foregoing items, Tenant shall obtain
an estimate for the cost of removing such items. If Subtenant elects to have such items removed, the cost of such removal shall be Subtenant’s responsibility and Subtenant shall be entitled to any salvage value of such items. If Master Lessor
does not consent to the removal of such items, Subtenant shall be responsible for the cost of relabeling the inactive lines. 
 9.7
Intentionally Deleted. 
 9.8 Intentionally Deleted. 
 9.9 Vortex. Subtenant shall be responsible for coordinating the assignment of the existing lease for the cooling tower Vortex to Subtenant. Tenant
agrees to cooperate to the extent needed and to consent to such assignment, provided Tenant does not incur any expense or liability associated therewith. 
 10. Requirements of Laws. Subtenant shall not use the Sublease Premises or permit anything to be done in or about the Sublease Premises which will in any way conflict with any law, statute, ordinance, or governmental rule or
regulation now in force or which may hereafter be enacted or promulgated. Subtenant shall not do or permit anything to be done on or about the Sublease Premises or bring or keep anything therein which will in any way increase the rate of any
insurance upon the Property or cause a cancellation of said insurance or otherwise affect said insurance in any manner and Subtenant shall, at its sole cost and expense, promptly comply with all Requirements (and with the requirements of any
property, liability or casualty underwriters or other similar body now or hereafter constituted) relating to or affecting the condition, use, or occupancy of the Sublease Premises, and shall otherwise comply with the provisions of Section 9 of
the Master Lease as it relates to the Sublease Premises. 
 11. Security Deposit. The parties acknowledge that Subtenant shall make a security deposit
in the amount set forth in the Basic Sublease Information, and such Security Deposit is included, and shall be held in accordance with the terms of, the Letter of Credit described in Section 17 hereof. 
 12. Signage. Subject to compliance with all applicable laws and regulations and obtaining Tenant’s and Master Lessor’s consent to the proposed sign,
Subtenant shall have the right to use 100% of the monument sign located on Hillview Avenue for identification purposes. In addition, Subtenant shall have the right to utilize the signage area delineated on the Lobby wall. Subject to compliance with
all applicable laws and regulations and obtaining Tenant’s and Master Lessor’s consent to the proposed sign, Subtenant shall have the right to install signage on the exterior of Building One. Except as specifically set forth in this
paragraph, all such signage installed by Subtenant shall be at Subtenant’s sole cost and expense. 
  

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 13. Surrender of Sublease Premises; Holdover Rent. Upon expiration of the Sublease Term, whether by lapse of time
or otherwise, Subtenant shall promptly and peacefully surrender the Sublease Premises to Tenant in Good Condition and Repair, but in no event shall Subtenant be required to return the Sublease Premises in better condition than the Existing
Condition. “Good Condition and Repair” shall generally mean that the Sublease Premises are in the condition that one would expect the Sublease Premises to be in, if throughout the Sublease Term, Subtenant (i) uses and maintains the
Sublease Premises in a commercially reasonable manner and in accordance with the requirements of this Sublease and (ii) makes all Required Replacements. “Required Replacements” are the replacements to worn-out (non-repairable)
equipment, fixtures, and improvements, including the Capital Replacements that a commercially reasonable owner-user would make. All of the following shall be in Good Condition and Repair: (i) the interior walls and floors (new carpet will not
be required at the end of the Sublease Term) of all offices and other interior areas; (ii) all suspended ceilings and any carpeting shall be clean and in good condition; (iii) all glazing, windows, doors and door closures, plate glass,
(iv) all electrical systems, including light fixtures and ballasts, plumbing, and temperature control systems; and (v) the existing approximately 20,000 square foot clean room. Subtenant, on or before the end of the Sublease Term or sooner
termination of this Sublease, shall remove all of its personal property and trade fixtures from the Sublease Premises (subject to Section 8.2 hereof), and all such property not so removed shall be deemed abandoned by Subtenant. Subtenant shall
reimburse Tenant for all disposition costs incurred by Tenant relative to Subtenant’s abandoned property. Subtenant agrees that time shall be of the essence with respect to Subtenant’s obligation to surrender possession of the Sublease
Premises to Tenant upon the termination of the Sublease Term, and further agrees that in the event Subtenant does not promptly surrender possession of the Sublease Premises to Tenant upon such termination, Tenant, in addition to any other rights and
remedies Tenant may have against Subtenant for such holding over, shall be entitled to bring summary proceedings against Subtenant, and Subtenant agrees to reimburse Tenant for all Tenant’s damages sustained by reason of such holding over,
including without limitation, Tenant’s consequential damages related to any holdover rent under the Master Lease, reasonable attorneys’ fees and disbursements incurred in connection with the exercise by Tenant of its remedies against
Subtenant. Subtenant understands that any holdover rent imposed by the Master Lease for a holdover in the Sublease Premises is not limited to the Rent for the Sublease Premises. 
 13.1 Subtenant New Lease with Master Landlord. Notwithstanding the foregoing, Tenant acknowledges that Subtenant may desire to remain in the
Sublease Premises after the expiration of the Sublease Term with the consent of Master Landlord. If Master Landlord has consented in writing to Subtenant’s continuing occupancy of the Sublease Premises as a direct relationship with Master
Landlord and not as a “holdover” under the Master Lease and this Sublease, then upon expiration of the Sublease Term Subtenant shall not be deemed a holdover occupant of the Sublease Premises nor shall Subtenant be required to surrender
the Sublease Premises or to remove its property, provided Subtenant shall be required to return the Sublease Premises to the Existing Condition (or pay to Tenant the cost to return the Sublease Premises only to the Existing Condition). 

14. Default by Subtenant; Termination of Master Lease. 
 14.1 Default by Subtenant. Section 14 of the Master Lease (Default) is incorporated herein by reference, it being understood that all references in Section 14 to “Lessee” shall be deemed references to
“Subtenant,” and all references to “Landlord” shall be deemed references to “Tenant”. In addition to the breaches and defaults set forth in Section 14 of the Master Lease, any event constituting a breach or default
under a provision of this Sublease shall constitute a default by Subtenant. In the event of any default by Subtenant, Tenant shall have the same rights and remedies as are available to Master Lessor under the Master Lease. 
  

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 14.2 Termination of Master Lease. 
 (a) Subject to Section 14.2(b) below, in the event that the Master Lease is terminated for any reason, on the date of such termination, this Sublease
automatically shall terminate and be of no force or effect. On the date of such termination, Tenant shall be released from any obligations of this Sublease including any liability to Subtenant, other than (i) the obligation to return the
Security Deposit pursuant to the provisions of Section 11.2 hereof; (ii) the obligation to return to Subtenant any Base Rent or Additional Rent previously paid by Subtenant and attributable to the period following such termination, and
(iii) the obligation to comply with the provisions of Section 17 regarding drawing on the Letter of Credit (as defined below), use of such proceeds and return of such Letter of Credit. 
 (b) In the event that the Master Lease is terminated as a result of Subtenant’s default, and if, within thirty (30) days of the date of such
termination, Subtenant and Master Lessor enter into a lease of the Sublease Premises, Tenant and Subtenant agree that all provisions of this Sublease with respect to the Sublease Premises shall automatically terminate, provided, however, that
Subtenant’s right to use the Furnishing Inventory shall terminate except to the extent alternative arrangements have been agreed in writing. 
 15.
Representations, Warranties and Covenants of Tenant. Except as otherwise provided herein or in a written instrument or agreement pursuant to which Master Lessor consents to this Sublease, Tenant represents, warrants and covenants that:

 15.1 The Master Lease is in full force and effect and there has occurred no breach or default by Tenant thereunder, nor has Tenant
acted or omitted to act in any way which would become a breach or default thereunder after notice or lapse of time or both. 
 15.2 To
the best of Tenant’s knowledge, there has occurred no breach or default by Master Lessor under the Master Lease, nor has Master Lessor acted or omitted to act in any way which would become a breach or default thereunder after notice or lapse of
time or both. 
 15.3 Subject to the terms and conditions hereof and obtaining Master Lessor’s consent to this Sublease, Tenant
has the legal right to possession of the Sublease Premises and the power and the right to enter into this Sublease and Subtenant, upon the faithful performance of all of the terms, conditions and obligations of Subtenant contained in this Sublease,
shall peaceably and quietly hold and enjoy the Sublease Premises upon the terms, covenants and conditions set forth in this Sublease throughout the Sublease Term and any extensions thereof. 
 15.4 Tenant will not enter into any voluntary agreement with Master Lessor to terminate the Master Lease and will comply with all terms thereof,
provided nothing herein shall preclude Tenant from exercising any termination rights as may be set forth in the Master Lease or the Sublease. 
 15.5 There have been no supplements or amendments of the Master Lease other than those amendments described in Recital A above, and attached thereto. Tenant will not modify, supplement or amend the Master Lease in any way that
materially adversely affects this Sublease. 
 15.6 Tenant will, reasonably promptly following receipt or transmittal thereof, provide
copies to Subtenant of all notices, consents or other communications between Tenant and Master Lessor which apply to or affect this Sublease. 
 15.7 Tenant shall at all times during the Sublease Term use commercially reasonable efforts to enforce its rights under the Master Lease so as to ensure that Master Lessor performs all duties and obligations with respect to the
Sublease Premises required of Master Lessor pursuant to the terms of the Master Lease. 
  

 8 

 15.8 Tenant has delivered to Subtenant the reports that are listed on Exhibit
“E”, which deal with Hazardous Materials related to the Sublease Premises and represents and warrants that to the best of its knowledge, those reports are the only reports in Tenant’s possession related to the Sublease
Premises and are true and correct in all material respects. Subtenant shall review such reports, conduct its own investigation and reach its own determination regarding Hazardous Materials at the Sublease Premises. Tenant agrees that Tenant shall be
responsible for any additional remediation of Hazardous Materials that may exist on or about the Sublease Premises prior to the Commencement Date to the extent such remediation is required by any applicable governmental authorities. In the event
Tenant is required to perform any remediation pursuant to the foregoing sentence, and such remediation reasonably prevents Subtenant from operating its business in the Sublease Premises for a period of forty-five (45) consecutive days, Rent
shall abate commencing on the day following such 45-day period until such time as Tenant has sufficiently completed the remediation for Subtenant to reasonably resume operations. Notwithstanding the foregoing, Tenant shall have no obligations
hereunder with respect to Hazardous Materials present in the Sublease Premises which require remediation only as a result of Subtenant’s alteration or improvement to the Sublease Premises (e.g. the removal of asbestos-bearing materials required
in connection with Subtenant’s alterations). 
 15.9 Tenant shall perform all its duties and obligations under the Master Lease
in a timely manner, except as such duties and obligations have been specifically assigned to Subtenant pursuant to the terms of this Sublease. 
 15.10 Tenant has received no notice from any governmental agency that the agency considers the Property to be in violation of any statutes, laws, ordinances, rules or regulations. 
 15.11 Tenant shall not exercise its option to extend the term pursuant to Master Lease, Section 35. 
 16. Hazardous Materials. Section 33 of the Master Lease (excluding Section 33.3) are hereby incorporated by reference, it being understood that all
references in Section 14 to “Lessee” shall be deemed references to “Subtenant,” and all references to “Landlord” shall be deemed references to “Tenant”. In addition, Subtenant shall not cause or permit
any Hazardous Material to be brought, kept or used in or about the Property by Subtenant, its agents, employees, contractors, or invitees, except as provided in Exhibit “F” (“Permitted Hazardous
Materials”) attached and incorporated herein, which Permitted Hazardous Materials shall be handled only in accordance with all applicable laws. During the Term, Subtenant may desire to revise its processing requirements to incorporate
new Hazardous Materials that are not listed on Exhibit “F” (“New Hazardous Materials”). In that event, Subtenant may bring New Hazardous Materials for use in its processing onto the Property only at
such time, if any, as Tenant has approved in writing the use of the New Hazardous Materials on the Property. Tenant shall not unreasonably withhold its approval of any New Hazardous Materials for use on the Property in Subtenant’s product
processing. Tenant may withhold, in its sole discretion, approval of use of any New Hazardous Material, if such New Hazardous Material is not of similar hazard classification to the materials already listed in Exhibit “F”.

 17. Letter of Credit. 
 17.1
General Provisions. On or before the Effective Date, Subtenant shall deliver to Tenant as collateral a standby, unconditional, irrevocable, letter of credit (the “Letter of Credit”) in the form of 

  

 9 

 
Exhibit “G” attached hereto and containing the terms required herein, in the face amount of $1,400,479.00, including the Security
Deposit (the “Letter of Credit Amount”), naming Tenant as beneficiary, issued (or confirmed) by a financial institution acceptable to Tenant in Tenant’s reasonable discretion. Subtenant shall pay all expenses, points,
and/or fees incurred by Subtenant in obtaining the Letter of Credit. Subtenant shall cause the Letter of Credit to be continuously maintained in effect (whether through replacement, renewal or extension) in the Letter of Credit Amount through the
date (the “Final LC Expiration Date”) that is 120 days after the scheduled expiration date of the Sublease Term or any extension thereof. If the Letter of Credit held by Tenant expires earlier than the Final LC Expiration
Date (whether by reason of a stated expiration date or a notice of termination or non-renewal given by the issuing bank), Subtenant shall deliver a new Letter of Credit or certificate of renewal or extension to Tenant not later than 30 days prior to
the expiration date of the Letter of Credit then held by Tenant. Any renewal or replacement Letter of Credit shall comply with all of the provisions of this Section 17, shall be irrevocable, transferable to the extent required in
Section 17.5 of this Sublease, and shall remain in effect (or be automatically renewable) through the Final LC Expiration Date upon the same terms as the expiring Letter of Credit or such other terms as may be acceptable to Tenant in its sole
discretion. The Letter of Credit shall not be mortgaged, assigned, or encumbered in any manner whatsoever by Subtenant without the prior written consent of Tenant. Notwithstanding the foregoing, upon execution of this Sublease, Subtenant may, in
lieu of the Letter of Credit, deliver to Tenant the Letter of Credit Amount in cash, to be held by Tenant in accordance with the terms of this Section 17. Upon delivery by Subtenant to Tenant of a Letter of Credit in accordance with this
Section 17, Tenant shall promptly return the cash deposit to Subtenant. 
 17.2 Drawings under Letter of Credit. Multiple
and partial draws of the Letter of Credit shall be permitted. Tenant shall have the right to draw upon the Letter of Credit, in whole or in part, at any time and from time to time if the Letter of Credit held by Tenant expires earlier than the Final
LC Expiration Date (whether by reason of a stated expiration date or a notice of termination or non-renewal given by the issuing bank) and Subtenant fails to deliver to Tenant, at least 30 days prior to the expiration date of the Letter of Credit
then held by Tenant, a renewal or substitute Letter of Credit that is in effect and that complies with the provisions of this Section 17. Except as set forth in the preceding sentence, Tenant shall only draw upon the Letter of Credit if
(i) Subtenant fails to pay any monetary obligation of this Sublease within 5 days of its due date or (ii) Subtenant fails to perform any non-monetary obligation of this Sublease within thirty (30) days of written notice from Tenant
and then only to the extent required to cure such default, and before drawing on the Letter of Credit Tenant shall give Subtenant five days notice and shall not draw if Subtenant remedies the failure before the expiration of the five day period. No
condition or term of this Sublease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing upon such Letter of Credit in a timely manner. Subtenant hereby acknowledges
and agrees that Tenant is entering into this Sublease in material reliance upon the ability of Tenant to draw upon the Letter of Credit upon the occurrence of any event described above. The use, application, or retention of the Letter of Credit, or
any portion thereof, by Tenant shall not prevent Tenant from exercising any other right or remedy provided by this Sublease or by law, it being intended that Tenant shall not first be required to proceed against the Letter of Credit and shall not
operate as a limitation on any recovery to which Tenant may otherwise be entitled, except for any default of Subtenant that is cured by the funds Tenant draws under the Letter of Credit. Except in the event of a draw for failure to deliver a renewal
or substitute Letter of Credit, within a reasonable time after making any draw under the Letter of Credit, Tenant shall deliver to Subtenant an itemization of the actual costs and expenses (“Actual Costs”) to which the drawn
funds were applied. If the Actual Costs are less than the funds drawn, Tenant shall return to Subtenant any excess amounts at the time Subtenant delivers to Tenant the additional Letter of Credit (to bring the total amount to the Letter of Credit
Amount) pursuant to Section 17.4. 
  

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 17.3 Use of Proceeds by Tenant. The proceeds of the Letter of Credit may be applied by
Tenant against any obligation whatsoever payable by Subtenant under this Sublease that is not paid when due and/or to pay for all losses and damages that Tenant has suffered or that Tenant reasonably estimates that it will suffer as a result of any
default by Subtenant under this Sublease. If Tenant draws under the Letter of Credit because of Subtenant’s failure to deliver a replacement Letter of Credit, Tenant shall deposit any such proceeds in a separate account in the name of Tenant
(or its designee) at a financial institution selected by Tenant in its sole discretion (the “LC Proceeds Account”). If Tenant draws upon the Letter of Credit solely due to Lessee’s failure to renew the Letter of Credit
as required, such failure to renew shall not constitute a default hereunder and Subtenant shall at any time thereafter be entitled to provide Tenant with a replacement Letter of Credit that satisfies the requirement of this Section in which case
Tenant shall immediately return funds from the LC Proceeds Account equal to the balance of the Letter of Credit drawn by Tenant, to the extent such funds have not been applied to cure a Subtenant default in accordance with the terms of this
Sublease. Tenant may apply funds from the LC Proceeds Account against any Rent payable by Subtenant under this Sublease that is not paid when due and/or to pay for all losses and damages that Tenant has suffered or that Tenant reasonably estimates
that it will suffer as a result of any default by Subtenant under this Sublease. Subtenant hereby grants Tenant a security interest in the LC Proceeds Account and agrees that, in addition to all other rights and remedies available to Tenant under
applicable Law, Tenant shall have all rights of a secured party under the California Uniform Commercial Code with respect to the LC Proceeds Account. The LC Proceeds Account shall be under the sole control of Tenant. Subtenant shall not have any
right to direct the disposition of funds from the LC Proceeds Account or any other right or interest in the LC Proceeds Account provided the proceeds may be used only for the purposes set out in this Section 17. Subtenant shall, at any time and
from time to time, execute, acknowledge and deliver such documents and take such actions as Tenant or the bank with which the LC Proceeds Account is maintained may reasonably request concerning the creation or perfection of the security interest
granted to Tenant in (including Tenant’s control of) LC Proceeds Account or to effect the provisions of this Section 17.3. Subtenant does hereby make, constitute and appoint Tenant its true and lawful attorney-in-fact, for it and in its
name, place and stead, to execute and deliver all such instruments and documents, and to do all such other acts and things, as Tenant may deem to be necessary or desirable to protect and preserve the rights granted to Tenant under this
Section 17.3, provided such acts may be taken only in accordance with the provisions of this Section 17. Subtenant hereby grants to Tenant the full power and authority to appoint one or more substitutes to perform any of the acts that
Tenant is authorized to perform under this Section 17.3, with a right to revoke such appointment of substitution at Tenant’s pleasure. The power of attorney granted herein is coupled with an interest and therefore is irrevocable. Any
person dealing with Tenant may rely upon the representation of Tenant relating to any authority granted by the power of attorney contained herein, including the intended scope of the authority, and may accept the written certificate of Tenant that
this power of attorney is in full force and effect. Photographic or other facsimile reproductions of this executed Sublease may be made and delivered by Tenant, and may be relied upon by any person to the same extent as though the copy were an
original. Anyone who acts in reliance upon any representation or certificate of Tenant, or upon a reproduction of this Sublease, shall not be liable for permitting Tenant to perform any act pursuant to this power of attorney. Provided Subtenant has
performed all of its obligations under this Sublease, Tenant agrees to pay to Subtenant within 30 days after the Final LC Expiration Date the amount of any proceeds of the Letter of Credit received by Tenant and not applied against any Rent payable
by Subtenant under this Sublease that was not paid when due or used to pay for any losses and/or damages suffered by Tenant (or reasonably estimated by Tenant that it will suffer) as a result of any default by Subtenant under this Sublease;
provided, that if prior to the Final LC Expiration Date a voluntary petition is filed by Subtenant, or an involuntary petition is filed against Subtenant by any of Subtenant’s creditors, under the Federal Bankruptcy Code, then Tenant shall not
be obligated to make such payment in the amount of the unused Letter of Credit proceeds until either all preference issues relating to payments under this Sublease have been resolved in such bankruptcy or reorganization case or such bankruptcy or
reorganization case has been dismissed, in each case pursuant to a final court order 

  

 11 

 
not subject to appeal or any stay pending appeal. Tenant shall return the original Letter of Credit to Subtenant within one hundred twenty (120) days
after Sublease termination (or sooner if no outstanding Subtenant obligations remain), less any funds Tenant has caused to be disbursed to it from the Letter of Credit pursuant to the terms of this Sublease. 
 17.4 Additional Covenants of Subtenant. If, as result of any application or use by Tenant of all or any part of the Letter of Credit except
Tenant’s call on the Letter of Credit as a result of the failure of Subtenant to deliver a replacement Letter of Credit, the amount of the Letter of Credit shall be less than the Letter of Credit Amount, Subtenant shall, within thirty days
thereafter, provide Tenant with additional letter(s) of credit in an amount equal to the deficiency (or a replacement letter of credit in the total Letter of Credit Amount), and any such additional (or replacement) letter of credit shall comply with
all of the provisions of this Section 17. Subtenant further covenants and warrants that it will neither assign nor encumber the Letter of Credit or any part thereof and that neither Tenant nor its successors or assigns will be bound by any such
assignment, encumbrances, attempted assignment or attempted encumbrance. 
 17.5 Transfer of Letter of Credit. Tenant may, at any time
and without notice to Subtenant and without first obtaining Subtenant’s consent thereto, transfer all or any portion of its interest in and to the Letter of Credit to another entity that merges with Tenant or purchases all or substantially all
of the assets of Tenant or the ownership interests in Tenant. Multiple transfers of the Letter of Credit shall be permitted in accordance with the foregoing. If Tenant transfers its interest in the Property and transfer the Letter of Credit (or any
proceeds thereof then held by Tenant) to such transferee, Tenant shall, without any further agreement between the parties hereto, thereupon be released by Subtenant from all liability with regard to the items so transferred. In connection with any
such transfer of the Letter of Credit by Tenant, Subtenant shall, at Tenant’s sole cost and expense, execute and submit to the issuer of the Letter of Credit such applications, documents and instruments as may be necessary to effectuate such
transfer. 
 17.6 Nature of Letter of Credit. Tenant and Subtenant (1) acknowledge and agree that in no event or
circumstance shall the Letter of Credit or any renewal thereof or substitute therefor or any proceeds thereof be deemed to be or treated as a “security deposit” under any Law applicable to security deposits in the commercial context
including California Civil Code Section 1950.7 (“Security Deposit Laws”), (2) acknowledge and agree that the Letter of Credit (including any renewal thereof or substitute therefor or any proceeds thereof) is not
intended to serve as a security deposit, and the Security Deposit Laws shall have no applicability or relevancy thereto, and (3) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or
arising from the Security Deposit Laws. Subtenant hereby specifically waives the provisions of Section 1950.7 of the California Civil Code and all other provisions of law, now or hereafter in effect, which (i) establish the time frame by
which Tenant must refund a security deposit under a Sublease, and/or (ii) provide that Tenant may claim from the Security Deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by
Subtenant or to clean the Premises, it being agreed that Tenant may, in addition, claim those sums specified in this Section 17 above and/or those sums reasonably necessary to compensate Tenant for any loss or damage caused by Subtenant’s
breach of this Sublease or the acts or omission of Subtenant or any employee, agent, contractor or invitee of Subtenant. 
 18. Subtenant Insurance. 

 18.1 During the Sublease Term, Subtenant shall maintain all insurance required to be maintained by Tenant pursuant to Section 6
of the Master Lease as it relates to the Sublease Premises and shall otherwise comply with all terms of Section 6 of the Master Lease. Subtenant shall name Tenant as an additional insured on each such insurance policy and shall provide Tenant
with certificates of insurance certifying said coverage prior to taking possession of the Sublease Premises. 
  

 12 

 19. Miscellaneous. 
 19.1. Entire Agreement. This Sublease contains all of the covenants, conditions and agreements between the parties concerning the Sublease Premises, and shall supersede all prior correspondence, agreements and
understandings concerning the Sublease Premises, both oral and written. No addition or modification of any term or provision of this Sublease shall be effective unless set forth in writing and signed by both Tenant and Subtenant, and consented to in
writing by Master Lessor. 
 19.2. Captions. All captions and headings in this Sublease are for the purposes of reference and
convenience and shall not limit or expand the provisions of this Sublease. 
 19.3. Master Lessor’s Consent. This Sublease is
conditioned upon obtaining the prior written consent of Master Lessor and any of Master Lessor’s mortgagees (if required) substantially in the form attached as Exhibit “H” (the “Master Lessor’s
Consent”) and incorporated herein. 
 19.4. Authority. Each person executing this Sublease on behalf of a party hereto
represents and warrants that he or she is authorized and empowered to do so and to thereby bind the party on whose behalf he or she is signing. 
 19.5. Attorneys’ Fees. In the event either party shall bring any action or proceeding for damages or for an alleged breach of any provision of this Sublease to recover rents, or to enforce, protect or establish any right or
remedy hereunder, the prevailing party shall be entitled to recover reasonable attorneys’ fees and court costs as part of such action or proceeding. 
 19.6. Brokerage Commission. Tenant and Subtenant each represent that they have dealt with no real estate brokers, finders, agents or salesman except as follows: (i) Michael Filice of CB Richard Ellis,
Michael Rosendin of Colliers International and Joe Moriarty of CPS are jointly representing the Tenant, and (ii) Duffy D’Angelo and Steve Gibson of Colliers International are jointly representing the Subtenant. Tenant shall pay a
brokers’ commission in accordance with its agreement with its brokers. 
 19.7. Notices. Any notices pursuant to this Sublease
shall be given in accordance with the terms of Section 17 of the Master Lease at the party’s respective Address(es) set forth in the Basic Sublease Information, except that if Subtenant has vacated the Sublease Premises (or if the Address
for Subtenant is other than the Sublease Premises, and Subtenant has vacated such address) without providing Tenant a new Address, Tenant may serve notice in any manner described therein or in any other manner permitted by law. 
 19.8. Governing Law. This Agreement is made under and will be governed by and construed in accordance with the laws of the State of California
(except that body of law controlling conflicts of law). 
 19.9 Consent to Jurisdiction and Forum Selection/Attorney Fees. The parties
hereto agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated exclusively in the State and Federal courts located in the County of Santa Clara, State of California. The aforementioned choice of
venue is intended by the parties to be mandatory and not permissive in nature, thereby precluding the possibility of litigation between the parties with respect to or arising out of this Agreement in any jurisdiction other than that specified in
this paragraph. Each party hereby waives any right it may have to assert the doctrine of forum non conveniens or similar doctrine or to object to venue with respect to any proceeding brought in accordance with this paragraph, and stipulates that the
State and Federal courts located in the County of Santa Clara, State of California shall have in personam jurisdiction and venue over each of them for the purpose of litigating any dispute, controversy, or proceeding arising out of or related to
this Agreement. 
  

 13 

 19.10 Assignment. Except in strict accordance with the Master Lease, and the consents of Master
Lessor as required in the Master Lease and of Tenant, Subtenant shall not assign, mortgage, pledge, hypothecate, encumber, or permit any lien to attach to, or otherwise transfer, this Sublease or any interest hereunder, permit any assignment or
other such foregoing transfer of this Sublease or any interest hereunder or any interest in Subtenant by operation of law or otherwise, sublet the Sublease Premises or any part thereof, or permit the use of the Sublease Premises by any persons other
than Subtenant, its employees, invitees, and clients. Notwithstanding the foregoing, the advance written consent of Master Landlord or of Tenant shall not be required for Subtenant to assign this Lease or to sublet all or any part of the Sublease
Premises to a bona fide subsidiary or affiliate of Subtenant, to an entity in which or with which Tenant merges or to an entity which acquires all or substantially all of the assets of Subtenant. 
 19.11 Performance By Tenant for Subtenant. If Subtenant shall default in performance of any of its obligations hereunder, Tenant at its option may
perform such obligations and, if necessary, enter the Sublease Premises for such purpose. Subtenant shall pay to Tenant, upon demand, the amount of all costs and expenses reasonably incurred by Tenant in the performance of any such obligations. Any
action taken by Tenant pursuant to this Section 19.11 shall not constitute a waiver of any of Tenant’s other rights and remedies hereunder. 
  

 14 

 IN WITNESS WHEREOF, the parties hereto have executed one (1) or more copies of this Sublease,
effective as of the Effective Date. 
 Tenant: 
  

			
	 EXAR CORPORATION,
 a Delaware corporation

		
	By:	 	  

		 	J. Scott Kamsler, Sr. VP and CFO
	Date:	 	  

	
	Subtenant:
	
	 Kovio Inc.
 a Delaware
corporation

		
	By:	 	  

		 	Amir Mashkoori, Chief Executive Officer
	Date:	 	  

  

 15Registration Rights Agreement

 Exhibit 4.2 
 EXECUTION COPY 
 REGISTRATION RIGHTS AGREEMENT 
 REGISTRATION RIGHTS AGREEMENT, dated as of August 31, 2004, among I-MaCS Management, L.L.C., a Texas limited liability company (the
“Company”), WELSH, CARSON, ANDERSON & STOWE IX, L.P., a Delaware limited partnership (“WCAS”), the several other individuals and entities named on Schedule I hereto (together with WCAS, each a
“Preferred Investor” and collectively the “Preferred Investors”), and each of the other entities and individuals from time to time listed on Schedule II hereto (each a “Common Member” and
collectively the “Common Members”). Each of the Preferred Investors and Common Members, together with its successors and permitted assigns, is herein sometimes referred to as a “Member” and collectively as
“Members.” 
 W I T N E S S E T H: 
 WHEREAS, on August 31, 2004, the Company, Preferred Investors, certain Common Members and certain other persons entered into a Recapitalization
Agreement (the “Recapitalization Agreement”), pursuant to which Preferred Investors will purchase from the Company Series A Preferred Units (“Series A Preferred Units”) of the Company; 
 WHEREAS, it is a condition to the obligation of each such Preferred Investor to purchase Series A Preferred Units under the Recapitalization Agreement
that the Company shall have executed and delivered this Agreement; 
 WHEREAS, in order to fulfill such condition, the Company wishes to
execute and deliver this Agreement and grant to Members the registration rights set forth herein with respect to the Common Units of the Company (“Common Units”) from time to time held by the Members (including Common Units from
time to time issuable in respect of Series A Preferred Units); and 
 WHEREAS, prior to a Public Offering (as hereinafter defined) the
Company may desire to convert from a Texas limited liability company to a corporation, it is the intent of the parties hereto that the benefits of this Agreement shall be applicable to any securities issued in respect of the Restricted Securities
(as hereinafter defined) in connection with such reorganization as contemplated by Section 8(h) hereof; 
 NOW, THEREFORE, in
consideration of the premises and the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows: 
 SECTION 1. Certain Definitions. For purposes of this Agreement, the following terms have the meanings set
forth below: 
 “Commission” means the Securities and Exchange Commission, or any other federal agency at the time administering the
Securities Act. 

 “Exchange Act” means the Securities Exchange Act of 1934, or any successor federal statute, and the
rules and regulations of the Commission thereunder, as the same may be amended from time to time. 
 “IPO Date” means the first date on
which Common Units shall have been sold by the Company in a Public Offering. 
 “Public Offering” means the sale of Common Units to the
public pursuant to an effective registration statement (other than a registration statement on Form S-4 or S-8 or any successor form) filed under the Securities Act. 
 “Restricted Securities” means, at any time, (i) all Common Units now or hereafter held by the Members, including all shares from time to time issued or issuable upon the conversion, exercise or
exchange of any securities directly or indirectly convertible into or exercisable or exchangeable for Common Units (other than unvested or out-of-the-money options) that are now or hereafter held by the Members, including the Series A Preferred
Units (it being understood that, with respect to any determination hereunder of the number of Common Units at any time held by one or more Members, all such Common Units that are issuable upon any such conversion, exercise or exchange shall be
deemed to have been issued at the time of such determination), (ii) all shares acquired by the exercise of any pre-emptive rights, rights of first refusal, or other rights to purchase or acquire securities of the Company, or through a permitted
transfer by a Member to another Member, and (iii) any Common Units issuable with respect to the foregoing by way of dividend or distribution or in connection with a combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise. As to any particular Common Units, such shares shall cease to be Restricted Securities (i) when a registration statement with respect to the sale of such shares shall have been declared effective under the
Securities Act and such shares shall have been disposed of in accordance with such registration statement, (ii) when such shares shall have been sold (other than in a privately negotiated sale) pursuant to Rule 144 or 701 (or any successor
provision) under the Securities Act, (iii) when, with respect to the holder thereof, such shares can be sold pursuant to Rule 144 or 701 promulgated under the Securities Act within a six month period in accordance with the limitations set forth
in Rule 144(e) promulgated under the Securities Act or (iv) when, with respect to the holder thereof, all such shares held by such holder become eligible for sale under Rule 144(k) of the Securities Act (or any similar or successor rule).

 “Securities Act” means the Securities Act of 1933, or any successor federal statute, and the rules and regulations of the Commission
thereunder, as the same may be amended from time to time. 
 The term “shares” as used herein with respect to Restricted Securities, Common Units
or Series A Preferred Units shall mean units thereof. 
 SECTION 2. Registration Rights. 
 (a) Demand Registration Rights. Subject to paragraph 2(c) below, if the Company shall at any time on or after the date hereof be requested by WCAS
in a writing that states the number of Restricted Securities to be sold and the intended method of disposition thereof (each such written request, a “Demand Request”), to effect a registration under the 

  

 2 

 
Securities Act of all or any portion of the Restricted Securities then held by WCAS or such Preferred Holder, as the case may be, the Company shall
immediately notify in writing (each such notice, a “Demand Registration Notice”) each other Member of such proposed registration and shall use its commercially reasonable efforts to register under the Securities Act (each such
registration, a “Demand Registration”), for public sale in accordance with the method of disposition specified in such Demand Request, the number of Restricted Securities specified in such Demand Request (plus the number of
Restricted Securities specified in any written request for registration of Restricted Securities that is received from each other Member receiving the Demand Registration Notice within 20 days after receipt by such other Member of such Demand
Registration Notice). For any Demand Registration, the reasonably anticipated aggregate price to the public of such offering shall exceed $5,000,000. In addition, with the written consent of WCAS, the Company shall be entitled to include in any
Demand Registration, for sale in accordance with the method of disposition specified by WCAS, Common Units to be sold by the Company for its own account or for the account of other Members. In the event that the proposed method of disposition
specified by WCAS or the Preferred Holder shall be an underwritten public offering, (i) the managing underwriter shall be selected by WCAS and (ii) the number of Restricted Securities to be included in such an offering may be reduced if
and to the extent that, in the good faith opinion of the managing underwriter of such offering, inclusion of all shares would adversely affect the marketing (including the offering price) of the Restricted Securities to be sold. In the case of any
such reduction, shares shall be included in such offering to the extent so permissible on the following basis: (A) first, all Restricted Securities proposed to be included by the Preferred Investors shall be included (subject to
pro rata reduction among the Preferred Investors seeking to include Restricted Securities in such offering based on the number of such Restricted Securities held by the Preferred Investors) and (B) second, to the extent
provided above, Common Units proposed to be included by the Company for the account of the Company or Common Members shall be included. The Company shall abandon any Demand Registration upon the request of WCAS and neither the Company nor WCAS shall
have any liability to any Member with respect to such abandonment subject to Section 2(d) hereof. Notwithstanding anything else to the contrary contained herein, the Company shall not be required to effect more than two (2) Demand
Registrations under this Section 2(a) on Form S-1 or any successor thereto (it being understood that there shall be no limitation on the number of Demand Registrations on Form S-3 or any successor thereto). Nothing in this Agreement shall
prevent WCAS from making a request under this Section 2(a) prior to the conversion of Series A Preferred Units. 
 Notwithstanding
anything to the contrary contained herein, the Company shall not be required to use its best efforts to cause a registration statement to be filed or to become effective pursuant to this Section 2(a) during the sixty (60) day period
preceding the estimated effective date of a registration statement filed by the Company covering a firm commitment underwritten public offering of Common Stock under the Securities Act (a “Company Filing”) and (ii) during the period
starting with the filing of, and ending on the date which is one hundred and eighty (180) days after such estimated effective date of a Company Filing. 
 This Section 2 shall not apply to a registration of shares of Common Stock on Form S-4 or Form S-8 or their then equivalent forms relating to an offering of shares of Common Stock to be issued solely in
connection with any acquisition of any entity or business or otherwise issuable in connection with any stock option, stock purchase or other employee benefit plan. 
  

 3 

 (b) Short-Form Registration Qualification. From and after the IPO Date the Company shall use its
commercially reasonable efforts to qualify under the provisions of the Securities Act, and thereafter, to continue to qualify at all times, for registration on Form S-3 or any successor thereto. For any registration on Form S-3 (or any successor
thereto), the reasonably anticipated aggregate price to the public of such offering on Form S-3 shall exceed $5,000,000. 
 (c) Certain
Provisions Relating to Demand Registrations. In connection with a Demand Registration, the Company shall be obligated to effect such Demand Registration in accordance with the following provisions: 
 (i) the obligations of the Company under Section 2(a) above to effect a Demand Registration shall be deemed satisfied only when a
registration statement covering all of the Restricted Securities specified in the applicable Demand Request and in each notice delivered by any other Member requesting registration of Restricted Securities in response to the Demand Registration
Notice for sale in accordance with the intended method of disposition specified by WCAS in the Demand Request shall have become effective and remained effective through the end of the period of distribution of the registration contemplated thereby
(determined as provided in the last paragraph of Section 2(f)); 
 (ii) except for registrations on Form S-4 or Form S-8
promulgated under the Securities Act (or any successor forms thereto), the Company will not effect any other registration of its Common Units, whether for its own account or that of other holders, from the date of receipt of a Demand Request until
the completion of the period of distribution of the registration contemplated thereby (determined as provided in the last paragraph of Section 2(f)); and 
 (iii) Notwithstanding the provisions of Section 2(a), the Company shall not be required to pay for any expenses of any registration
begun pursuant to this Section 2 if the registration request is subsequently withdrawn at the request of WCAS, unless WCAS agrees to forfeit its right to one (1) Demand Registration pursuant to this Section 2 (in which case such right
shall be forfeited by all Members); provided, further, however, that if (x) at the time of such withdrawal, any of the Members have learned of a material adverse change in the condition, business, or prospects of the Company not known to the
Members at the time of their request for such registration and have withdrawn their request for registration with reasonable promptness after learning of such material adverse change, or (y) the underwriters advise the Company and the Members
that the offering is not practicable due to the Company’s failure to cooperate with the underwriters so as to effect the registration, then the Members shall not be required to pay any of such expenses and shall retain their rights pursuant to
this Section 2. 
 (d) Piggyback Registration Rights. If at any time after the IPO Date the Company proposes to register any of
its Common Units or any other equity securities (or other securities convertible into equity securities) of the Company under the Securities Act for sale to the public, whether for its own account or for the account of other security holders or both
(other than a Demand Registration or a registration on Form S-4 or Form S-8 promulgated under the 

  

 4 

 
Securities Act (or any successor forms thereto) or any other form not available for registering the Restricted Securities for sale to the public), it will
give written notice (each such notice a “Piggyback Notice”) to each Member of its intention to do so as soon as practicable prior to the filing of such registration statement with the Commission. Upon the written request of any
Member, given within 20 days after receipt by such Member of the Piggyback Notice, to register any of its Restricted Securities (which request shall state the number of Restricted Securities to be so registered and the intended method of disposition
thereof), the Company will use its commercially reasonable efforts to cause the Restricted Securities, as to which registration shall have been so requested, to be included in the securities to be covered by the registration statement proposed to be
filed by the Company, all to the extent required to permit the sale or other disposition by such Member of such Restricted Securities so registered; provided, that nothing herein shall prevent the Company from abandoning or delaying such
registration at any time. In the event that any registration referred to in this Section 2(d) shall be, in whole or in part, an underwritten public offering, such Restricted Securities shall be included in the underwriting on the same terms and
conditions as the shares otherwise being sold through underwriters under such registration. The number of Restricted Securities to be included in such an underwritten offering may be reduced if and to the extent that, in the good faith opinion of
the managing underwriter of such offering, inclusion of all shares would adversely affect the marketing (including the offering price) of the shares to be sold; and, in the case of any such reduction, shares shall be included in such offering to the
extent so permissible on the following basis: (A) first, all shares proposed to be included by the Company for the account of the Company shall be included, (B) second, all Restricted Securities proposed to be included by the
Members shall be included (subject to pro rata reduction among the Members seeking to include Restricted Securities in such offering based on the number of such Restricted Securities held by the Members), and (C) finally,
Common Units proposed to be included by the Company for the account of other security holders of the Company shall be included. 
 (e) Holdback Agreement. Notwithstanding anything to the contrary contained in this
Agreement, with respect to any Public Offering by the Company, upon request of the managing underwriter of such offering, each Member shall refrain from selling or otherwise transferring Restricted Securities (other than pursuant to
Section 2(a) or 2(d) above) during the period beginning no earlier than the tenth day preceding the effective date of the registration statement for such offering and continuing through the end of the period of distribution of the registration
contemplated thereby (determined as provided in the last paragraph of Section 2(f)) and, if requested by any managing underwriter of such offering, to execute a customary lock-up agreement to the effect of the foregoing; provided, that
each Member shall, in any event, be entitled to sell or otherwise transfer its Restricted Securities (x) in the case of the Company’s initial Public Offering, commencing on the 180th day after the IPO Date and (y) in the case of any
other Public Offering, on the 90th day after shares are first sold to the public in such offering (the “Lock-Up Period”).

 Each Member also agrees, without the consent of the managing underwriter of a Public Offering by the Company, not to, directly or
indirectly, offer, sell, pledge, contract to sell (including any short sale), grant any option to purchase or otherwise dispose of any securities of the Company held by him, her or it (except for any securities sold pursuant to such registration
statement) or enter into any “Hedging Transaction” (as defined below) relating to any securities of the Company (including, without limitation, pursuant to Rule 144 under the Securities Act, or 

  

 5 

 
any successor similar exemptive rule hereinafter in effect) held by him, her or it for such Lock-Up Period following the effective date of the registration
statement of the Company filed under the Act with respect to such offering. For purposes of this Section, “Hedging Transaction” means any short sale (whether or not against the box) or any purchase, sale or grant of any right
(including, without limitation, any put or call option) with respect to any security (other than a broad-based market basket or index) that includes, relates to or derives any significant part of its value from the Common Units. 
 (f) Certain Registration Procedures. If and whenever the Company is required by the provisions of this Section 2 to use its commercially
reasonable efforts to effect the registration of Restricted Securities under the Securities Act, the Company will, as expeditiously as possible: 
 (i) prepare (and afford the Members Counsel (as hereinafter defined) reasonable opportunity to review and comment thereon) and file with the Commission a registration statement with respect to such securities and use
its commercially reasonable efforts to cause such registration statement to become and remain effective through the end of the period of distribution contemplated thereby (determined as provided in the last paragraph of Section 2(f));

 (ii) prepare (and afford the Members Counsel reasonable opportunity to review and comment thereon) and file with the
Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective through the end of period of distribution contemplated
thereby (determined as provided in the last paragraph of Section 2(f)) and comply with the provisions of the Securities Act with respect to the disposition of all Restricted Securities covered by such registration statement in accordance with
the selling Members’ intended method of disposition set forth in such registration statement through the end of such period of distribution; 
 (iii) furnish to each selling Member and to each underwriter such number of copies of the registration statement and the prospectus included therein (including each preliminary prospectus) as such persons may
reasonably request in order to facilitate the public sale or other disposition of the Restricted Securities covered by such registration statement; 
 (iv) use its commercially reasonable efforts to register or qualify the Restricted Securities covered by such registration statement under the securities or blue sky laws of such jurisdictions as WCAS, the Members
Counsel or, in the case of an underwritten public offering, the managing underwriter, shall reasonably request; provided, that the Company will not be required to (x) qualify generally to do business in any jurisdiction where it would
not otherwise be required to qualify but for this Section 2(f)(iv), (y) subject itself to taxation in any such jurisdiction in which it would not otherwise be subject to taxation but for this Section 2(f)(iv) or (z) consent to
general service of process in any jurisdiction in which it would not otherwise be subject to general service of process but for this Section 2(f)(iv); 
  

 6 

 (v) immediately notify each selling Member under such registration statement and each
underwriter, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus contained in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing (and upon receipt of any such notice,
each selling Member agrees to suspend sales of Restricted Securities covered by such prospectus until such time as the Company notifies it that the prospectus (as supplemented or amended) no longer includes any untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to be make the statements therein not misleading in light of the circumstances then existing); 
 (vi) use its commercially reasonable efforts (if the offering is underwritten) to furnish, at the request of WCAS or the Members Counsel,
on the date that Restricted Securities are delivered to the underwriters for sale pursuant to such registration: (A) an opinion dated such date of counsel representing the Company for the purposes of such registration, addressed to the
underwriters and to each selling Member, stating that such registration statement has become effective under the Securities Act and that (1) to the best knowledge of such counsel, no stop order suspending the effectiveness thereof has been
issued and no proceedings for that purpose have been instituted or are pending or contemplated under the Securities Act, (2) the registration statement, the related prospectus, and each amendment or supplement thereof, comply as to form in all
material respects with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder (except that such counsel need express no opinion as to financial statements, the notes thereto, and the financial
schedules and other financial and statistical data contained therein) and (3) to such other effects as may reasonably be requested by counsel for the underwriters or by WCAS or the Members Counsel, and (B) a letter dated such date from the
independent public accountants retained by the Company, addressed to the underwriters and to each selling Member, stating that they are independent public accountants within the meaning of the Securities Act and that, in the opinion of such
accountants, the financial statements of the Company included in the registration statement or the prospectus, or any amendment or supplement thereof, comply as to form in all material respects with the applicable accounting requirements of the
Securities Act, and such letter shall additionally cover such other financial matters (including information as to the period ending no more than five business days prior to the date of such letter) with respect to the registration in respect of
which such letter is being given as such underwriters, WCAS or the Members Counsel may reasonably request; and 
 (vii) make
available for inspection by WCAS, any underwriter participating in any distribution pursuant to such registration statement, the Members Counsel and any accountant or other agent retained by WCAS or such underwriters, all financial and other
records, pertinent corporate documents and properties of the Company, and cause the Company’s officers, directors and employees to supply all information reasonably requested by WCAS, the Members Counsel or any of such underwriters, attorneys,
accountants or agents in connection with such registration statement and permit WCAS, the Members Counsel and such underwriters, attorneys, accountants or agents to participate in the preparation of such registration statement. 
  

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 For purposes of Sections 2(c), 2(e), 2(f)(i) and 2(f)(ii) above, the “period of
distribution” of Restricted Securities in an underwritten public offering shall be deemed to extend until each underwriter has completed the distribution of all securities purchased by it, and the period of distribution of Restricted
Securities in any other registration shall be deemed to extend until the sale of all Restricted Securities covered thereby; provided, that (x) in the case of the Company’s initial Public Offering the period of distribution shall not
exceed 180 days after the IPO Date and (y) in the case of any other Public Offering the period of distribution shall not exceed 90 days after the shares are first sold to the public in such offering, in each case it being understood that such
maximum period of distribution shall be extended to the extent of any period during which sales are suspended under Section 2(f)(v) or 2(j). 
 (g) Information From Selling Members. In connection with each registration hereunder, Members selling Restricted Securities will furnish to the Company in writing such information with respect to themselves and the proposed
distribution by them as shall be reasonably necessary in order to assure compliance with federal and applicable state securities laws. 
 (h)
Underwriting Agreement. In connection with any registration pursuant to this Section 2 that covers an underwritten public offering, the Company and Members selling Restricted Securities each agree to enter into a written agreement with
the managing underwriter selected in the manner herein provided in such form and containing such provisions as are customary in the securities business for such an arrangement between major underwriters, selling holders and a company of the
Company’s size and investment stature; provided, that in the case of any Demand Registration, such agreement shall be satisfactory to WCAS. 
 (i) Expenses. The Company will pay all Registration Expenses (as defined below) incurred in complying with Section 2 of this Agreement. All Selling Expenses (as defined below) incurred in connection with
any registered offering of securities that, pursuant to this Section 2, includes Restricted Securities, shall be borne by the participating sellers in proportion to the number of shares sold by each, or by such persons, including the Company if
the Company is a seller, as they may agree. All expenses incident to performance of or compliance by the Company with Section 2 hereof, including, without limitation, all Commission, stock exchange, Nasdaq or National Association of Securities
Dealers, Inc. (“NASD”) registration and filing fees (including, without limitation, fees and expenses incurred in connection with the listing of the Common Units of the Company on any securities exchange or exchanges or Nasdaq),
printing, distribution and related expenses, fees and disbursements of counsel and independent public accountants for the Company, all reasonable fees and disbursements of one firm counsel for the Members selected by WCAS (or, in the event WCAS is
not participating in such registration, such counsel shall be selected by the Members holding a majority of the Restricted Securities proposed to be included in such registration) (the “Members Counsel”), all fees and expenses incurred in
connection with compliance with state securities or blue sky laws and the rules of the NASD or any securities exchange, transfer taxes and fees of transfer agents and registrars, but excluding any Selling Expenses, are herein called
“Registration Expenses”. All underwriting discounts and selling commissions applicable to the sale of Restricted Securities are herein called “Selling Expenses”. 
  

 8 

 (j) Suspension. For a period not to exceed sixty (60) days, the Company shall not be
obligated to prepare and file, or be prevented from delaying or abandoning, a registration statement pursuant to this Agreement at any time when the Company, in its good faith judgment by the Board of Directors with the advice of counsel, reasonably
believes: 
 (i) that the filing thereof at the time requested, or the offering of Restricted Shares pursuant thereto, would
materially and adversely affect (a) a pending or scheduled public offering or private placement of the Company’s securities, (b) an acquisition, merger, consolidation or similar transaction by or of the Company, (c) pre-existing
and continuing negotiations, discussions or pending proposals with respect to any of the foregoing transactions, or (d) the financial condition of the Company in view of the disclosure of any pending or threatened litigation, claim, assessment,
governmental investigation or accounting deficiency or irregularity, or deficiency in internal controls and procedures, which may be required thereby; and 
 (ii) that the failure to disclose any material information with respect to the foregoing would cause a violation of the Securities Act or the Exchange Act. 
 In the event the Company’s Board of Directors exercises its right to delay or abandon a registration statement as provided herein it shall cause the
President or other executive officer of the Company to furnish to the Members a certificate certifying that the Company’s Board of Directors has determined in good faith that one or more conditions of this Section have been satisfied;
provided, that the Company may not exercise this right more than once in any twelve (12) month period. 
 SECTION 3.
Indemnification Rights and Obligations In Respect of Registered Offerings of Restricted Securities. 
 (a) Company Indemnification
of Selling Members. In the event of a registration of any Restricted Securities under the Securities Act pursuant to Section 2 of this Agreement, the Company will indemnify and hold harmless each seller of Restricted Securities thereunder
and each other person, if any, who controls such seller within the meaning of the Securities Act and each underwriter and each person who controls any underwriter within the meaning of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, (or actions in respect thereof) to which such seller, underwriter or controlling person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any registration statement under which such Restricted Securities were registered under the Securities Act, any
preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and will reimburse each such seller, each such underwriter and each such controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any
such 

  

 9 

 
loss, claim, damage, liability or action; provided, that the Company will not be liable in any such case if and to the extent that any such loss,
claim, damage, liability or action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such seller or such controlling person in writing
specifically for use in such registration statement or prospectus; provided, further, that the indemnity agreement contained in this Section 3(a) shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld, conditioned or delayed). 
 (b) Selling Member Indemnification of the Company and the Other Selling Members. In the event of a registration of any Restricted Securities under the Securities Act pursuant to Section 2 of this
Agreement, each seller of such Restricted Securities thereunder, severally and not jointly, will indemnify and hold harmless the Company and each person, if any, who controls the Company within the meaning of the Securities Act, each officer of the
Company who signs the registration statement, each director of the Company, each underwriter and each person who controls any underwriter within the meaning of the Securities Act, and each other seller of Restricted Securities and each person who
controls any such other seller of Restricted Securities, against all losses, claims, damages or liabilities, joint or several, (or actions in respect thereof) to which the Company or such officer or director or underwriter or other seller or
controlling person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of
any material fact contained in the registration statement under which such Restricted Securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or
arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and each such officer,
director, underwriter, other seller of Restricted Securities and controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action;
provided, that such seller will be liable hereunder in any such case if and only to the extent that any such loss, claim, damage, liability or action arises out of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission made in reliance upon and in conformity with information pertaining to such seller, as such, furnished in writing to the Company by such seller specifically for use in such registration statement or prospectus; provided,
further, that the liability of each seller hereunder shall be limited to the proceeds (net of underwriting discounts and commissions) received by such seller from the sale of Restricted Securities covered by such registration statement;
provided, further, that the indemnity agreement contained in this Section 3(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent
of such seller of Restricted Securities (which consent shall not be unreasonably withheld). 
 Notwithstanding anything else herein to the
contrary, the foregoing indemnity with respect to any preliminary prospectus shall not inure to the benefit of any Member or underwriter or other aforementioned person, or any person controlling such Member or underwriter, from whom the person
asserting any such losses, claims, damages or liabilities purchased shares in the offering, if a copy of the most current prospectus (x) was delivered to such Member by the 

  

 10 

 
Company prior to the written confirmation of the sale to such person, but (y) was not sent or given by or on behalf of such Member or underwriter or
other aforementioned person to such person, if required by law to have been so delivered, at or prior to the written confirmation of the sale of the shares to such person, and if the prospectus (as so amended or supplemented) would have cured the
defect giving rise to such loss, claim, damage or liability. 
 (c) Indemnification Procedures. Promptly after receipt by an
indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof, but the
omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party other than under this Section 3. In case any such action shall be brought against any indemnified party and it shall
notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such
indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 3
for any legal expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected; provided, that if the defendants in any such
action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be reasonable defenses available to it which are different from or additional to those available to the
indemnifying party, or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, the indemnified party shall have the right to select a separate counsel and to assume such legal
defenses and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the indemnifying party as incurred.
Notwithstanding the foregoing, any indemnified party shall have the right to retain its own counsel in any such action, but the fees and disbursements of such counsel shall be at the expense of such indemnified party; provided that such fees and
expenses shall be at the expense of the indemnifying party if (i) the indemnifying party shall have failed to retain counsel for the indemnified person as aforesaid or (ii) the indemnifying party and such indemnified party shall have
mutually agreed to the retention of such counsel. It is understood that the indemnifying party shall not, in connection with any action or related actions in the same jurisdiction, be liable for the fees and disbursements of more than one separate
firm qualified in such jurisdiction to act as counsel for the indemnified party. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of such indemnified party, which consent shall not be unreasonably
withheld, consent to entry of any judgment or enter into any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity was sought hereunder by such indemnified party unless
such judgment or settlement includes as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation. The indemnification of underwriters
provided for in this Section 3 shall be on such other terms and conditions as are at the time customary and reasonably required by such underwriters as provided in Section 2(h). 
  

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 (d) Contribution. If the indemnification provided for in Sections 3(a) and 3(b) above is
unavailable or insufficient to hold harmless an indemnified party under such Sections in respect of any losses, claims, damages or liabilities or actions in respect thereof referred to therein, then each indemnifying party shall in lieu of
indemnifying such indemnified party contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or actions in such proportion as appropriate to reflect the relative fault of the
Company, on the one hand, and the underwriters and the sellers of such Restricted Securities, on the other, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or actions as well as any other
relevant equitable considerations, including, without limitation, the failure to give any notice under Section 3(c) above. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact relates to information supplied by the Company, on the one hand, or the underwriters and the sellers of such Restricted Securities, on the other, and to the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The Company and each of the Members agrees that it would not be just and equitable if contributions pursuant to this Section were determined by pro rata allocation (even if all of the
sellers of such Restricted Securities were treated as one entity for such purpose) or by any other method of allocation which did not take account of the equitable considerations referred to above in this Section. The amount paid or payable by an
indemnified party as a result of the losses, claims, damages, liabilities or action in respect thereof, referred to above in this Section, shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section, the sellers of such Restricted Securities shall not be required to contribute any amount in excess of the amount, if any, by which
the total price at which the Restricted Securities sold by each of them was offered to the public exceeds the amount of any damages which they are otherwise required to pay by reason of such untrue or alleged untrue statement or omission. No person
guilty of fraudulent misrepresentations (within the meaning of Section 11(f) of the Securities Act), shall be entitled to contribution from any person who is not guilty of such fraudulent misrepresentation. 
 SECTION 4. Rule 144. The Company agrees with the Members that, from and after the IPO Date, it shall file any and all reports required to be filed
by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder, or, if the Company is not thereafter required to file any such reports, it shall, upon the written request of any Member, make
publicly available such information as is necessary to permit sales pursuant to Rule 144 under the Securities Act. Upon the written request of any Member, the Company shall promptly furnish to such Member a written statement by the Company as to its
compliance with the reporting requirements set forth in this Section 4. 
 SECTION 5. Duration of Agreement. This Agreement shall
survive so long as any Member owns any Restricted Securities. 
 SECTION 6. Exchange Act Registration. The Company shall use its best
efforts to timely file with the Commission such information as the Commission may require under Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and in such event, the Company shall use its
best efforts to take all action pursuant to Rule 144(c) as may be required as a condition to the availability of Rule 144 or Rule 144A under 

  

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the Securities Act (or any successor exemptive rule hereinafter in effect) with respect to such Common Units. The Company shall furnish to any Member
forthwith upon written request (i) a written statement by the Company as to its compliance with the reporting requirements of Rule 144(c), (ii) a copy of the most recent annual or quarterly report of the Company as filed with the
Commission, and (iii) such other publicly filed reports and documents as a Member may reasonably request in availing itself of any rule or regulation of the Commission allowing a Member to sell any such Restricted Securities without
registration. The Company agrees to use its best efforts to facilitate and expedite transfers of the shares pursuant to Rule 144 under the Securities Act, which efforts shall include timely notice to its transfer agent to expedite such transfers of
shares and timely filing of all reports required to be filed with the Commission within any applicable time period (such as Form 10-K, Form 10-Q and Form 8-K). 
 SECTION 7. Transferability and Expiration of Registration Rights. The rights to cause the Company to register Restricted Securities pursuant to this Agreement may be assigned (but only with all related
obligations) by a Member to a transferee or assignee of such securities that (i) is a subsidiary, parent, partner, limited partner, retired partner, member, retired member or stockholder of a Member, (ii) is a Member’s family member
or trust for the benefit of an individual Member, or (iii) after such assignment or transfer, holds at least ten percent (10%) of the original Restricted Securities (subject to appropriate adjustment for stock splits, stock dividends,
combinations or the like) (or if the transferring Member owns less than ten percent (10%) of such securities, then all Restricted Securities held by the transferring Member), provided: (a) the Company is, within a reasonable time after
such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing to be
bound by and subject to the terms and conditions of this Agreement; and (c) such assignment shall be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted
under the Securities Act. For the purposes of determining the number of Restricted Securities held by a transferee or assignee, the holdings of transferees and assignees of (x) a partnership who are partners or retired partners of such
partnership or (y) a limited liability company who are members or retired members of such limited liability company (including immediate family members of such partners or members who acquire Restricted Securities by gift, will or intestate
succession) shall be aggregated together and with the partnership or limited liability company; provided that all assignees and transferees who would not qualify individually for assignment of registration rights shall have a single attorney-in-fact
for the purpose of exercising any rights, receiving notices or taking any action under Section 2. The registration rights set forth in Section 2 of this Agreement shall terminate and expire with respect to any Member (or any transferee or
assignee thereof) at such time as such Member is not an affiliate of the Company at the time of any proposed sale or transfer and is otherwise eligible to sell to the public such Restricted Securities without the need of a registration statement
pursuant to Rule 144(k) of the Securities Act. 
 SECTION 8. Miscellaneous. 
 (a) Additional Registration Rights. Without the consent of WCAS, the Company shall not grant any registration rights to any other person that are
inconsistent or conflict with the registration rights granted hereunder. 
  

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 (b) Headings. Headings of sections of this Agreement are inserted for convenience of reference
only and shall not affect the interpretation hereof. 
 (c) Severability. Each provision of this Agreement shall be treated as a
separate and independent clause, and the unenforceability of any one clause shall in no way impair the enforceability of any of the other clauses contained herein. If one or more of the provisions contained in this Agreement shall for any reason be
held to be unenforceable, such provision or provisions shall be construed by the appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with applicable law, and no other provision
hereof shall be affected by such holding, limitation or reduction. 
 (d) Benefits of Agreement. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and permitted assigns and nothing in this Agreement, expressed or implied, is intended to confer on any person other than the parties hereto, their respective
successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. The rights and obligations of the parties hereto shall not be assigned without the consent of WCAS, in the case of any
assignment by the Company, or the Company, in the case of any assignment by any Member, and any attempted assignment in violation of this Section 6(d) shall be null and void; provided, that any Member’s rights hereunder are
assignable to a transferee in connection with any transfer of Restricted Securities (including by means of transferring securities that are directly or indirectly convertible into or exercisable or exchangeable for Restricted Securities) so long as
(i) such transferee expressly agrees to become bound hereby as a “Member” hereunder pursuant to a written instrument in form and substance reasonably satisfactory to the Company and (ii) notice of such transfer is given to the
Company and WCAS. 
 (e) Entire Agreement; Modification. This Agreement constitutes the entire agreement among the parties with
respect to the subject matter hereof and supercedes all prior agreements and understandings, oral and written, between the parties hereto with respect to the subject matter hereof. This Agreement may not be modified or amended except by a writing
signed by the Company and WCAS; provided, that no provision of this Agreement may be modified or amended in a manner materially adverse to a Member other than WCAS (in its capacity as a Member hereunder) if such modification or amendment
affects such Member disproportionately relative to the other Members, other than with the written consent of such Member; provided, further, that, no provision of this Agreement may be modified or amended in a manner materially adverse
to the Common Members if such modification or amendment affects such Common Members disproportionately relative to WCAS. Notwithstanding the foregoing, upon the written agreement of only the Company and WCAS, additional Members may be added to this
Agreement. Any waiver of any provision of this Agreement must be in a writing signed by the party against whom enforcement of such waiver is sought. 
  

 14 

 (f) Notices. All notices, requests, instructions and other documents that are required to be or
may be given or delivered pursuant to the terms of this Agreement shall be in writing and shall be sufficient in all respects if delivered by hand or national overnight courier service, transmitted by facsimile or mailed by registered or certified
mail, postage prepaid, as follows: 
 If to the Company, to it at: 
 13760 Noel Road, Suite 1100 
 Dallas, TX 75240 
 Facsimile: (972) 960-2726 
 Attention: Chief Executive Officer 
 with a copy to: 
 Welsh, Carson, Anderson & Stowe IX, L.P. 
 320 Park Avenue, Suite 2500 
 New York, New York 10022 
 Attention: D. Scott Mackesy 
 Facsimile: (212) 893-9566 
 with an additional copy to: 
 Ropes & Gray LLP 
 45 Rockefeller Plaza 
 New York, New York 10111 
 Attention: Othon A. Prounis, Esq. 
 Facsimile: (212) 841-5725 
 If to any Member, to such Member at its address set forth on Schedule I and Schedule II hereto; or such other address or addresses as any party hereto shall have designated by notice in writing to the other parties hereto.
Such notices, requests, instructions and other documents shall be deemed given or delivered (i) five business days following sending by registered or certified mail, postage prepaid, (ii) one business day following sending by national
overnight courier service, (iii) when sent, if sent by facsimile (but only if such facsimile is actually received) or (iv) when delivered, if delivered by hand. 
 (g) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any or all such
counterparts may be executed by facsimile. 
 (h) Changes in Restricted Securities. If, and as often as, there are any changes in
Restricted Securities by way of a dividend, distribution, split, combination or reclassification, or through merger, consolidation, reorganization or recapitalization, or by any other means, appropriate adjustment shall be made in the provisions
hereof as may be required so that the rights and privileges granted hereby shall continue with respect to the Restricted Securities as so changed and the Company shall make appropriate provision in connection with any merger, consolidation,
reorganization or recapitalization that any successor to the Company (or resulting parent thereof) shall agree, as a condition to the consummation of any such transaction, to expressly assume the Company’s obligations hereunder. 
  

 15 

 (i) Specific Performance. Each party hereto agrees that a remedy at law for any breach or
threatened breach by such party of this Agreement would be inadequate and therefore agrees that any other party hereto shall be entitled to specific performance of this Agreement in addition to any other available rights and remedies in case of any
such breach or threatened breach. 
 (j) Governing Law. This Agreement and all disputes arising out of or relating to this Agreement,
its subject matter, the performance by the parties of their respective obligations hereunder or the claimed breach hereof, whether in tort, contract or otherwise, shall be governed by and construed in accordance with the internal laws of the State
of New York without giving effect to its choice of law principles. 
 (k) Interpretation. As used herein, the words
“hereof”, “herein”, “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and the word
“Section” refers to a Section of this Agreement unless otherwise specified. Whenever the words “include”, “includes” or “including” are used in this Agreement they shall be deemed to be followed by the words
“without limitation”. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. 
 [SIGNATURE PAGES FOLLOW] 
  

 16 

 IN WITNESS WHEREOF, the Company and the Members have executed this Registration Rights Agreement as of
the day and year first above written. 
  

					
	The Company:
	
	I-MaCS Management, L.L.C.
		
	By:	 	/s/ Harriett Flowers
		 	Name:	 	Harriett Flowers
		 	Title:	 	General Partner

							
	The Preferred Investors:
		
		 	 WELSH, CARSON, ANDERSON &
STOWE IX, L.P.

			
		 	By:	 	WCAS IX ASSOCIATES LLC,
		 		 	Its General Partner
			
		 	By:	 	/s/ Jonathan Rather
		 		 	Name:  Jonathan Rather
		 		 	Title:    Managing Member
		
		 	WCAS MANAGEMENT CORPORATION
			
		 	By:	 	/s/ Jonathan Rather
		 	Name:  Jonathan Rather
		 	Title:    Treasurer

			
	Patrick J. Welsh
	Russell L. Carson
	Bruce K. Anderson
	Thomas E. McInerney
	Robert A. Minicucci
	Anthony J. de Nicola
	Paul B. Queally
	Jonathan M. Rather
	Sanjay Swani
	D. Scott Mackesy – IRA
	John D. Clark
	James R. Matthews
	Sean M. Traynor
	John Almeida, Jr.
	Eric J. Lee
	Michael E. Donovan
	Brian Regan
	David Mintz
	Ankur Kumar
	Clinton Biondo
	Rona Drogy
		
	By:	 	/s/ Jonathan Rather
		 	Jonathan M. Rather
		 	Individually and as Attorney-in-Fact
	
	/s/ John K. Carlyle
	John K. Carlyle
	
	CORDILLERA INTEREST, LTD.
	By:	 	Cordillera Interest I, Inc.,
		 	Its General Partner
		
	By:	 	/s/ John K. Carlyle
	Name: John K. Carlyle
	Title:	 	

			
	CC BPO INVESTORS, LLC
		
	By:	 	/s/ James R. Stone
	Name:	 	James R. Stone
	Title:	 	Chief Executive Officer
	
	/s/ Harriett Flowers
	Harriett Flowers
	
	/s/ Gary Cohen
	Gary Cohen
	
	IMACS INVESTORS PARTNERSHIP
		
	By:	 	/s/ Harriett Flowers
	Name:	 	
	Title:	 	
	
	B&F FAMILY ENTERPRISES, L.P.
		
	By:	 	B&F Family Management, L.L.C.,
		 	Its General Partner
		
	By:	 	/s/ Harriett Flowers
	Name:	 	
	Title:	 	
	
	COHEN FAMILY ENTERPRISES, L.P.
		
	By:	 	Cohen Family Management, L.L.C.,
		 	Its General Partner
		
	By:	 	/s/ Gary Cohen
	Name:	 	Gary Cohen
	Title:	 	General Partner

 SCHEDULE I 
  

			
	 Preferred Investor
	  	 Address for Notices

	 Welsh, Carson, Anderson & Stowe IX, L.P.
 WCAS Management Corp.
 Patrick J. Welsh
 Russell L. Carson
 Bruce K. Anderson
 Thomas E. McInerney
 Robert A. Minicucci
 Anthony J. de Nicola
 Paul B. Queally
 Jonathan M. Rather
 Sanjay Swani
 D. Scott Mackesy – IRA
 John D. Clark
 James R. Matthews
 Sean M. Traynor
 John Almeida, Jr.
 Eric J. Lee
 Michael E. Donovan
 Brian Regan
 David Mintz
 Ankur Kumar
 Clinton Biondo
 Rona Drogy
	  	 c/o Welsh, Carson, Anderson & Stowe
 320 Park Avenue,
Suite 2500
 New York, New York 10022
 Attention: D. Scott Mackesy

 Fax: (212) 893-9566

		
	 John Carlyle
	  	 6 Cliff Trail
 Frisco, Texas 75034

		
	 Cordillera Interest, Ltd.
	  	 6 Cliff Trail
 Frisco, Texas 75034

		
	 CC BPO Investors, LLC
	  	 c/o Converge Capital
 60 State Street, Suite
700
 Boston, Massachusetts 02109
 Attention: James
Stone
 Fax: (617) 371-2950

 SCHEDULE II 
  

			
	 Common Member
	  	 Address for Notices

	 Harriet Flowers
	  	 Harriett Flowers
 c/o I-MaCS Management,
L.L.C.
 13760 Noel Road, Suite 1100
 Dallas, Texas
75240
 Telecopy: (972) 960-2726

		
	 Gary A. Cohen
	  	 Gary Cohen
 c/o I-MaCS Management, L.L.C.

13760 Noel Road, Suite 1100
 Dallas, Texas 75240
 Telecopy: (972) 960-2726

		
	 IMaCS Investors Partnership
	  	 IMaCS Investors Partnership
 c/o I-MaCS Management,
L.L.C.
 13760 Noel Road, Suite 1100
 Dallas, Texas
75240
 Attention: Harriett Flowers
 Telecopy: (972)
960-2726

		
	 B&F Family Enterprises, L.P.
	  	 B&F Family Enterprises, L.P.
 c/o I-MaCS
Management, L.L.C.
 13760 Noel Road, Suite 1100
 Dallas, Texas
75240
 Attention: Harriett Flowers
 Telecopy: (972)
960-2726

		
	 Cohen Family Enterprises, L.P.
	  	 Cohen Family Enterprises, L.P.
 c/o I-MaCS Management,
L.L.C.
 13760 Noel Road, Suite 1100
 Dallas, Texas
75240
 Attention: Gary Cohen
 Telecopy: (972)
960-2726

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