Document:

Loan Agreement for $90,000,000 Loan

 EXHIBIT 10.94 
  
 LOAN AGREEMENT FOR $90,000,000 LOAN ASSUMED WITH LANDESBANK 
 SCHLESWIG-HOLSTEIN GIRONZENTRALE, KIEL 

 
 
 
 
 LOAN AGREEMENT 
  
 Dated as of December 20,
2001 
  
 among 
  
 LANDESBANK SCHLESWIG-HOLSTEIN GIRONZENTRALE, KIEL, 
 as Agent and as a Lender 

 
 and 
  
 THE SEVERAL OTHER LENDERS FROM TIME TO TIME 
 PARTIES HERETO, as Lenders 
  
 and 
  
 DOUGLAS EMMETT JOINT VENTURE,

 as Borrower 
  
 
 
 

 TABLE OF CONTENTS 
  
 
	  	  	  	  	 Page
 

	 ARTICLE 1    DEFINITIONS AND ACCOUNTING TERMS
 	  	 1
 
	         1.1
 	  	 Defined Terms
 	  	 1
 
	         1.2
 	  	 Use of Defined Terms
 	  	 14
 
	         1.3
 	  	 Accounting Terms
 	  	 14
 
	         1.4
 	  	 Exhibits and Schedules
 	  	 14
 
	 
	 ARTICLE 2    CREDIT FACILITY
 	  	 14
 
	         2.1
 	  	 General Provisions Regarding Loan and Borrowing Procedures
 	  	 14
 
	         2.2
 	  	 Interest Rates
 	  	 15
 
	         2.3
 	  	 Principal and Interest and Late Payments
 	  	 15
 
	         2.4
 	  	 Late Payment Premium and Default Rate
 	  	 15
 
	         2.5
 	  	 Computation of Interest and Fees
 	  	 16
 
	         2.6
 	  	 Breakage Costs
 	  	 16
 
	         2.7
 	  	 Continuation Options
 	  	 16
 
	         2.8
 	  	 Minimum Amounts and Maximum Number of Interest Periods
 	  	 16
 
	         2.9
 	  	 Unavailability
 	  	 16
 
	         2.10
 	  	 Illegality
 	  	 17
 
	         2.11
 	  	 Increased Costs
 	  	 17
 
	         2.12
 	  	 Voluntary Prepayments
 	  	 18
 
	         2.13
 	  	 Manner and Treatment of Payments
 	  	 19
 
	         2.14
 	  	 Funding Sources
 	  	 19
 
	         2.15
 	  	 Failure to Charge Not Subsequent Waiver
 	  	 19
 
	 
	 ARTICLE 3    LOAN CONDITIONS
 	  	 19
 
	         3.1
 	  	 Loan
 	  	 19
 
	         3.2
 	  	 Property Information
 	  	 23
 
	         3.3
 	  	 The Property
 	  	 23
 
	 
	 ARTICLE 4    REPRESENTATIONS AND WARRANTIES
 	  	 24
 
	         4.1
 	  	 Existence and Qualification; Power; Compliance With Laws
 	  	 24
 
	         4.2
 	  	 Authority; Compliance With Other Agreements and Instruments and Government Regulations
 	  	 24
 
	         4.3
 	  	 No Governmental Approvals Required
 	  	 25
 
	         4.4
 	  	 Environmental and Industrial Hygiene Compliance
 	  	 25
 
	         4.5
 	  	 Financial Statements
 	  	 25
 
	         4.6
 	  	 No Other Liabilities; No Material Adverse Changes
 	  	 25
 
	         4.7
 	  	 Title to Property
 	  	 26
 
	         4.8
 	  	 Litigation
 	  	 27
 
	         4.9
 	  	 Binding Obligations
 	  	 27
 
	         4.10
 	  	 ERISA
 	  	 27
 
	         4.11
 	  	 Regulations G, T, U and X; Investment Company Act
 	  	 28
 
	         4.12
 	  	 Disclosure
 	  	 28
 
	         4.13
 	  	 Tax Matters
 	  	 28
 
	         4.14
 	  	 Fiscal Year
 	  	 28
 

 

 
 i 

  
 
	  	  	  	  	 Page(s)
 

	         4.15
 	  	 Insolvency and Related Matters
 	  	 28
 
	         4.16
 	  	 Intangible Assets
 	  	 29
 
	         4.17
 	  	 Schedules
 	  	 29
 
	         4.18
 	  	 Tenant Leases
 	  	 29
 
	         4.19
 	  	 Ownership by Benefit Plan Investor
 	  	 29
 
	         4.20
 	  	 Modifications to Organizational Documents
 	  	 29
 
	         4.21
 	  	 Fraudulent Conveyance
 	  	 30
 
	         4.22
 	  	 Access/Utilities
 	  	 30
 
	         4.23
 	  	 Special Assessments
 	  	 30
 
	         4.24
 	  	 Flood Zone
 	  	 30
 
	         4.25
 	  	 Condemnation Proceedings
 	  	 30
 
	         4.26
 	  	 Brokers
 	  	 30
 
	         4.27
 	  	 Survival of Representations and Warranties
 	  	 31
 
	 
	 ARTICLE 5    AFFIRMATIVE COVENANTS (OTHER THAN INFORMATION
AND REPORTING
REQUIREMENTS)
 	  	 31
 
	         5.1
 	  	 Payment of Taxes and Other Potential Liens
 	  	 31
 
	         5.2
 	  	 Preservation of Existence
 	  	 31
 
	         5.3
 	  	 Maintenance of Property; Compliance with Agreements
 	  	 31
 
	         5.4
 	  	 Compliance With Laws
 	  	 32
 
	         5.5
 	  	 Inspection Rights
 	  	 32
 
	         5.6
 	  	 Keeping of Records and Books of Account
 	  	 32
 
	         5.7
 	  	 Maintenance of Insurance
 	  	 32
 
	         5.8
 	  	 Prohibition Against Distributions and Application of Gross Revenues to Other Expenditures of the Borrower
 	  	 32
 
	         5.9
 	  	 Capital Requirements
 	  	 32
 
	         5.10
 	  	 Separateness Covenants
 	  	 33
 
	         5.11
 	  	 Trade Payables
 	  	 34
 
	         5.12
 	  	 Application of Insurance and Condemnation Proceeds
 	  	 34
 
	         5.13
 	  	 Debt Service Coverage Ratio
 	  	 34
 
	         5.14
 	  	 Interest Rate Protection Agreement
 	  	 35
 
	         5.15
 	  	 Impound
 	  	 35
 
	 
	 ARTICLE 6    NEGATIVE COVENANTS
 	  	 35
 
	         6.1
 	  	 Hypothecation or Disposition of the Property
 	  	 35
 
	         6.2
 	  	 Mergers
 	  	 36
 
	         6.3
 	  	 ERISA
 	  	 36
 
	         6.4
 	  	 Change in Nature of Business
 	  	 37
 
	         6.5
 	  	 Change in Fiscal Year
 	  	 37
 
	         6.6
 	  	 Limitation on Ownership by Benefit Plan Investors
 	  	 37
 
	         6.7
 	  	 Distributions
 	  	 37
 
	         6.8
 	  	 Additional Indebtedness
 	  	 37
 
	         6.9
 	  	 Management Fees
 	  	 37
 
	         6.10
 	  	 Total Indebtedness
 	  	 37
 
	 
	 ARTICLE 7    INFORMATION AND REPORTING REQUIREMENTS
 	  	 37
 

 

 
 ii 

  
 
	  	  	  	  	 Page(s)
 

	         7.1
 	  	 Financial and Business Information
 	  	 37
 
	         7.2
 	  	 Revisions or Updates to Schedules
 	  	 39
 
	 
	 ARTICLE 8    EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT
 	  	 40
 
	         8.1
 	  	 Events of Default
 	  	 40
 
	         8.2
 	  	 Remedies Upon Event of Default
 	  	 42
 
	 
	 ARTICLE 9    MISCELLANEOUS
 	  	 43
 
	         9.1
 	  	 Cumulative Remedies; No Waiver
 	  	 43
 
	         9.2
 	  	 Amendments; Consents
 	  	 43
 
	         9.3
 	  	 Costs, Expenses and Taxes
 	  	 43
 
	         9.4
 	  	 Nature of Lenders’ Obligations
 	  	 44
 
	         9.5
 	  	 Reliance Upon Representations and Warranties
 	  	 44
 
	         9.6
 	  	 Notices
 	  	 44
 
	         9.7
 	  	 Execution of Loan Documents; Counterparts
 	  	 45
 
	         9.8
 	  	 Indemnity by the Borrower
 	  	 45
 
	         9.9
 	  	 Nonliability of the Lenders
 	  	 45
 
	         9.10
 	  	 No Third Parties Benefited
 	  	 46
 
	         9.11
 	  	 Further Assurances
 	  	 46
 
	         9.12
 	  	 Integration
 	  	 46
 
	         9.13
 	  	 Modifications and Amendments
 	  	 47
 
	         9.14
 	  	 Effectiveness
 	  	 47
 
	         9.15
 	  	 Governing Law
 	  	 47
 
	         9.16
 	  	 Severability of Provisions
 	  	 47
 
	         9.17
 	  	 Headings
 	  	 47
 
	         9.18
 	  	 Time of the Essence
 	  	 47
 
	         9.19
 	  	 JURY TRIAL WAIVER, ETC
 	  	 47
 
	         9.20
 	  	 Non-Recourse
 	  	 48
 
	         9.21
 	  	 Substitution of DERA
 	  	 48
 
	         9.22
 	  	 Property Management
 	  	 48
 
	         9.23
 	  	 Invoices
 	  	 48
 
	         9.24
 	  	 Standard of Reasonableness
 	  	 48
 
	         9.25
 	  	 Confidential Information; Press Releases
 	  	 49
 
	         9.26
 	  	 Successors and Assigns
 	  	 49
 
	         9.27
 	  	 Participations and Syndication
 	  	 49
 
	  	  	 (a)    Appointment and Responsibilities of the Agent:
 	  	 49
 
	  	  	 (b)    The Loans
 	  	 53
 
	  	  	 (c)    Decisions
 	  	 54
 
	  	  	 (d)    Successors and Assigns; Participations; Assignments
 	  	 56
 
	  	  	 (e)    Defaulting Lenders
 	  	 59
 
	  	  	 (f)    Miscellaneous
 	  	 59
 
	         9.28
 	  	 Financing Statements
 	  	 61
 
	         9.29
 	  	 Leasing Matters
 	  	 61
 
	         9.30
 	  	 Borrower’s Request
 	  	 62
 
	         9.31
 	  	 Agent and Lender Response
 	  	 62
 

 

 
 iii 

  
 
	  	  	  	  	 Page(s)
 

	         9.32
 	  	 Subordination, Non-Disturbance and Attornment Agreements
 	  	 63
 

 

 
 iv 

 This AGREEMENT is entered into by and among LANDESBANK SCHLESWIG-HOLSTEIN GIRONZENTRALE, KIEL, as Agent and as a Lender,
the several banks and other financial institutions or entities from time to time parties to this Agreement, as Lenders, and DOUGLAS EMMETT JOINT VENTURE, as Borrower. 
  
 The parties hereto hereby agree as follows: 
  
 ARTICLE 1 
 DEFINITIONS AND ACCOUNTING TERMS 
  
 1.1    Defined Terms.    As used in this Agreement, the following terms shall have the meanings set forth respectively after
each: 
  
 “Adjusted LIBO Rate” means a rate of interest per annum determined in accordance with the
following formula: 
  
 
	 LIBO Rate
 
	  	 + Libor Margin
 
	 1.00 – Reserve Requirements
 	  	  

 
  
 “Administrative Fee” means the annual fee payable
to Agent for its own account as provided in the Fee Letter. 
  
 “Affiliate” means, as to any Person,
(a) any other Person which, directly or indirectly through one or more intermediaries controls, or is under common control with, or is controlled by, (i) such Person or (ii) any general partner of such Person; (b) any other Person five percent (5%)
or more of the equity interest of which is held beneficially or of record by (i) such Person or (ii) any general partner of such Person, or (c) any general or limited partner of (i) such Person or (ii) any general partner of such Person. As used in
this definition, “control” (and its correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of management or
policies (whether through ownership of securities or partnership or other ownership interests, by contract, family relationship or otherwise). 
  
 “Agent” means LB Kiel or any other Person appointed as a successor Agent pursuant to Section 9.27(a)(9) hereof. 
  
 “Agreement” means this secured term loan agreement, as it may from time to time be supplemented, modified, amended, restated or extended. 

 
 “Alternate Rate” means the sum of (a) the Federal Funds Rate, (b) the applicable Libor Margin and (c) .20% per
annum. 
  
 “Alternate Rate Loan” means a Loan bearing interest at the Alternate Rate. 

 
 “Appraisal” means a written statement independently and impartially prepared by a Qualified Appraiser setting
forth an opinion as to the market value of an adequately described 

 Property as of a specific date, supported by the presentation and analysis of relevant market information and which is in compliance with
FIRREA. 
  
 “Appraised Value” means the “as-is” fair market value of the Property as
established by an Appraisal. 
  
 “Approved Leases” means any lease of space in the Building which
satisfies the requirements of Section 9.29 of this Agreement. 
  
 “Arrangement Fee” means the fee
payable to Agent for its own account as provided in the Fee Letter. 
  
 “Assigned Amount” means the
Dollar amount of the Loan allocated or assigned to or retained by Lenders pursuant to the terms of this Agreement. 
  
 “Assignee” means any Eligible Lender which is the holder of one of the Notes. 
  
 “Assignment and Acceptance” means an agreement between Lenders and an Assignee substantially in the form attached hereto as Exhibit A. 
  
 “Borrower” means Douglas Emmett Joint Venture, a California general partnership. 
  
 “Building” means the improvements located upon the Real Property and all land, easements, rights and appurtenances relating thereto. 

 
 “Business Day” means any day (other than a Saturday or Sunday) on which commercial banks are not authorized or
required to close in New York City and in Frankfurt am Main, Germany; and, whenever such day relates to a Libor Loan, any such day in which Dollar deposits are also carried out in the London interbank market and banks are open for business in
London, England, New York City and Frankfurt am Main, Germany. 
  
 “Capital Commitments” means (a)
the obligations of the General Partners to contribute capital to the Borrower and (b) the obligations of the Limited Partners to contribute capital to the General Partners upon the request of DERA. 
  
 “Capital Lease Obligations” means as to any Person, the obligations of such Person to pay rent or other amounts under any
lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof (other than a ground lease), which obligations are required to be classified and accounted for as capital leases on a balance sheet of
such Person under GAAP and, for the purposes of this Agreement, the amount of such obligation at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP. 
  

“Cash Flow” means Net Operating Income less the sum of (a) Debt Service and (b) the cost of tenant improvements and leasing commissions. 

 
 2 

  
 “Change in Control” means the acquisition of ownership, directly
or indirectly, beneficially or of record, by any Person or group, other than Dan Emmett, Jordan Kaplan, Chris Anderson or Ken Panzer of a Controlling interest in the General Partners or in DERA or in any substitute general partner permitted pursuant
to the terms of Section 9.21 of this Agreement. 
  
 “Closing Date” means the date upon which the
Deed of Trust securing the Obligations is recorded in the official records of Los Angeles County. 
  
 “Code” means the California Health and Safety Code, as amended from time to time. 
  
 “Collateral” means such property of the Borrower as may now or hereafter become subject to a Lien in favor of the Lenders. 
  
 “Collateral Documents” means all security agreements, deeds of trust, mortgages, assignments, pledge agreements, financing statements, consents and other documents granting Liens to
the Lenders pursuant to this Agreement, or perfecting, effecting, facilitating, consenting to, providing notice of or otherwise evidencing such Liens, including, without limitation, any Deed of Trust. 
  
 “Commitment” means $90,000,000. 
  
 “Conditions Survey” means a detailed report made by a Qualified Engineer describing the results of an investigation and inspection of the Property conducted not earlier than ninety
days prior to the Closing Date, which report shall (i) address the structural integrity of the Building, including all electrical, plumbing and mechanical elements and systems, (ii) state any repairs which the Property may need, including deferred
maintenance, and (iii) recommend an appropriate reserve for replacements for the term of the Loan plus two years and shall include a probable maximum loss study. 
  
 “Contingent Obligations” means, as applied to any Person, any direct or indirect liability or obligation of that Person, the payment or satisfaction of which is contingent upon the
occurrence of some future event or condition other than the passage of time, as determined in accordance with GAAP. 
  
 “Contracts” means all agreements with any Person to provide goods or services for the benefit of the Property, including, but not limited to, maintenance, management and service contracts. 
  
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have the meanings correlative thereto. 
  
 “Debt Service” means payments required to be made by Borrower (a) under the Interest Rate Protection Agreement, while
such agreement is in effect or (b) to Lenders in payment of interest due on the Loan. 

 
 3 

  
 “Debt Service Coverage Ratio” means the Net Operating Income
from the Property for the calendar quarter in question divided by the interest which would accrue on the Principal Balance for the calendar quarter in question using an interest rate equal to the greater of (a) the interest rate applicable under the
Interest Rate Protection Agreement obtained by Borrower, if any (b) the interest rate applicable to the Principal Balance as set forth in this Agreement, if there is no Interest Rate Protection Agreement in effect or (c) eight percent (8%) per
annum. 
  
 “Debt Service Coverage Ratio Certificate” means a certificate executed by a Responsible
Official of the Borrower in the form attached hereto as Schedule 5.13. 
  
 “Decisions” means all
decisions, consents, waivers, approvals and other actions authorized to be taken under or in connection with the Loan Documents by the Agent or the holder of any of the Notes. 
  
 “Deed of Trust” means the Deed of Trust, Assignment of Rents and Security Agreement executed and delivered by the Borrower to the Lenders pursuant to
Section 3.1(a)(3) hereof. 
  
 “Default” means any event which, with notice or passage of time or
both, would become an Event of Default. 
  
 “Defaulting Lender” means any Lender which has become
subject to the Agent’s set-off rights under Section 9.27(e)(1) hereof. 
  
 “Default Rate” means
the lesser of (a) the maximum rate of interest allowed by applicable Law, if interest is restricted to a maximum rate, and (b) five percent (5%) per annum in excess of the interest rate in effect from time to time in accordance with the terms of
this Agreement in the absence of an Event of Default. 
  
 “DERA” means Douglas Emmett Realty
Advisors, a California corporation 
  
 “DERF” means Douglas Emmett Realty Fund, a California limited
partnership. 
  
 “DERF2” means Douglas Emmett Realty Fund No. 2, a California limited partnership.

  
 “Dollars” or “$” means United States dollars. 
  
 “Eligible Lender” means (a) any German public sector bank, Landesbank, or savings bank organized under the laws of the
Federal Republic of Germany (b) any commercial bank organized or licensed under the laws of the United States of America, or any state thereof or under the laws of another country that is a member of the Organization for Economic Cooperation and
Development so long as (i) such bank has a combined capital and surplus of at least US $1,000,000,000, and total assets of at least US $25,000,000,000, and (ii) such bank (or the holding company thereof) shall have a long-term senior unsecured
indebtedness rating of BBB+ or better by Standard & Poor’s (if rated by Standard & Poor’s) and Baal or better by Moody’s Investor Service, Inc. (if rated by Moody’s Investor Service, Inc.); (c) any Person to 

 
 4 

 
which a portion of the Loan has previously been assigned and/or participated in compliance with the terms of Section 9.27 of this Agreement; and (d) subject to the prior consent of Borrower, any
other Person, provided that (i) such consent shall not be required if any Event of Default has occurred and is continuing at the time of the assignment of an interest in the Loan or a grant of a participation, (ii) such consent (if required) shall
not be unreasonably withheld and (iii) such consent shall be deemed to have been given unless written notice of disapproval is delivered by the Borrower to the Lenders within five (5) Business Days after notice of such proposed assignment and/or
participation has been delivered to Borrower. If an Eligible Lender is not a U.S. Person it shall have submitted to Lenders a Form 1001, Form W-8BEN, or Form 4224 of the United States Department of the Treasury. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, and any regulations issued pursuant thereto, as
amended or replaced and as in effect from time to time. 
  
 “Environmental Audit Report” means a
written report prepared, at the Borrower’s sole cost and expense, in accordance with American Society for Testing and Materials standards, and meeting all requirements of the domestic Governmental Agency having jurisdiction over the Property,
by a licensed consultant or other Person reasonably acceptable to the Agent evaluating the presence of Hazardous Materials, in, on or around the Property and confirming, if applicable, that all Hazardous Materials described in such report have been
mitigated in accordance with the requirements of the California Department of Toxic Substances Control and any other applicable domestic, Governmental Agency. The Environmental Audit Report shall be a Phase 1 Report or its equivalent unless further
investigation, cleanup, mitigation or other action is indicated in the Phase 1 Report, in which case, the Environmental Audit Report shall be a Phase 2 or other level appropriately indicated in the Phase 1 or any supplemental report. 

 
 “Environmental Consultant” means the consultant selected by Agent to prepare the Environmental Audit Report.

  
 “Environmental Laws” means all federal, state or local laws, statutes, common law duties, rules,
regulations, ordinances and codes, together with all administrative orders, licenses, authorizations and permits of, and agreements with, any domestic Governmental Agency, in each case relating to environmental, health and safety matters; including
CERCLA, the Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation and Recovery Act, the Toxic Substances Control Act, the Emergency Planning and Community Right-to-Know Act,
the California Hazardous Waste Control Law, the California Solid Waste Management, Resource, Recovery and Recycling Act, the California Water Code and the Code. 
  
 “Event of Default” shall have the meaning set forth in Section 8.1 hereof. 
  
 “Estoppel Certificates” means statements from tenants of portions of the Properties with respect to their respective leases in form and substance satisfactory to the Agent and its
counsel. 
  
 “Federal Funds Rate” means for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal Funds transactions with members of the 

 
 5 

 
Federal Reserve System arranged by Federal Funds brokers on such day, as published by the Federal Reserve Bank of New York on the next succeeding day, provided that (a) if the day for which such
rate is to be determined is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day and (b) to the extent that the Federal
Funds Rate is not available, the Prime Rate shall be used in its place and stead. 
  
 “Fee Letter”
means that certain letter between Agent and Borrower of even date herewith which sets forth the obligation of Borrower to pay to Agent for its own account the Administrative Fee and the Arrangement Fee. 
  
 “Financial Statements” means the financial statements referenced in Section 4.5 hereof. 
  
 “FIRREA” means the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. 
  
 “Fiscal Quarter” means a fiscal quarter of the Borrower. 
  
 “Fiscal Year” means each fiscal year of the Borrower, ending on December 31 of each year. 
  
 “GAAP” or “generally accepted accounting principles” means generally accepted accounting principles set forth from time to time in the opinions
and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions and of comparable
stature and authority within the accounting profession), or in such other statements by such other entity as may be in general use by significant segments of the U.S. accounting profession which are applicable to the circumstances as of the date of
determination. 
  
 “General Partners” means the general partners of the Borrower which are Douglas
Emmett Realty Fund, a California limited partnership and Douglas Emmett Realty Fund No. 2, a California limited partnership. 
  
 “Governmental Agency” means (a) any international, foreign, federal, state, county or municipal government, or political subdivision thereof, (b) any governmental or quasi-governmental agency, authority, board,
bureau, commission, department, instrumentality or public body, or (c) any court, administrative tribunal or public utility. 
  
 “Gross Revenues” means for any period the receipts of every kind and nature from the Property, including, without limitation, all rents, receipts and any other payments of every kind and nature paid to or for the
benefit of the Borrower, including, without limitation, any tax, insurance and operating expense payments or reimbursements, and amounts paid to the Borrower from any concessionaire or licensee at the Property, but excluding termination fees
received from tenants in connection with the termination of leases, real estate tax refunds (including refunds which are refundable to tenants on account of prior pass-throughs of real estate taxes), insurance and condemnation proceeds, any amount
received in connection with the 

 
 6 

 
rejection of any lease in any bankruptcy, reorganization, arrangement or other insolvency proceeding and fees received by the Borrower for management, maintenance or other services, interest
income and any other extraordinary nonrecurring items. 
  
 “Hazardous Materials” means all those
substances which are regulated by, or which may form the basis of liability under any Environmental Law, including all substances identified under any Environmental Law as a pollutant, contaminant, hazardous waste, hazardous constituent, special
waste, hazardous substance, hazardous material, or toxic substance, or petroleum or petroleum derived substance or waste. 
  
 “Indebtedness” of any Person means at any date, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services
(other than current trade payables and accrued expenses incurred in the ordinary course of such Person’s business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness
created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited
to repossession or sale of such property), (e) all Capital Lease Obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party under acceptance, letter of credit or similar facilities, (g) all
guarantees of such Person in respect of obligations of the kind referred to in clauses (a) through (f) above and (h) all obligations of the kind referred to in clauses (a) through (g) above secured by (or for which the holder of such obligation has
an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such
obligation. Notwithstanding the foregoing, Indebtedness shall not include Contingent Obligations of Borrower under hedging instruments associated with floating rate indebtedness. 
  
 “Indemnity” means the indemnity to be executed and delivered by the Borrower to the Lenders pursuant to Section 3.1(a)(4) hereof. 
  
 “Individual Loan” means the Assigned Amount and Percentage Interest assigned to a Lender which is evidenced by one of the
Notes. 
  
 “Intangible Assets” means assets that are considered intangible assets under GAAP,
consistently applied, including, without limitation, goodwill, patents, trademarks, trade names, copyrights and other intangible property, including, without limitation, all names and/or logos used or proposed to be used by the Borrower
and/or the General Partner exclusively in connection with the Property, but none of the foregoing to the extent same are used in connection with any other property owned by the Borrower and/or the General Partner. 
  
 “Interest Payment Date” means the date through which interest is accrued and on which interest is due. Interest, whether
payable on an Alternate Rate Loan or a Libor Loan, shall be payable monthly in arrears, measured from the first day of each Libor Loan and Alternate Rate Loan, as applicable, until the Note is repaid in full. 

 
 7 

  
 “Interest Period” means with respect to any Libor Loan:

  
 (a)    initially, the period commencing on the borrowing or conversion date, as the case may
be and ending one, two, three, six or twelve months thereafter, as selected by Borrower in its Rate Request given with respect thereto; and 
  
 (b)    thereafter, each period commencing on the last day of the then-expiring Interest Period applicable to such Libor Loan and ending one, two, three, six or twelve months
thereafter, as selected by Borrower in its Rate Request; provided, however, all of the foregoing provisions relating to Interest Periods are subject to the following: 
  
 (i)    if any Interest Period pertaining to a Libor Loan would otherwise end on a day that is not a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day;

  
 (ii)    any Interest Period that would otherwise extend beyond the Maturity Date shall end
on the Maturity Date; 
  
 (iii)    any Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the subsequent calendar month; and 
  
 (iv)    any Interest Period shall match a period selected under the Interest Rate Protection Agreement in effect
during such Interest Period. 
  
 “Interest Rate Protection Agreement” means a hedging product to be
approved by the Agent. 
  
 “Laws” means, collectively, all federal, state and local statutes,
treaties, rules, regulations, ordinances, codes and published administrative or judicial precedents. 
  
 “LB
Kiel” means Landesbank Schleswig-Holstein Gironzentrale, Kiel. 
  
 “Lease Package” has the
meaning set forth in Section 9.31 of this Agreement. 
  
 “Lenders” means LB Kiel and any other
Person making an Individual Loan to Borrower pursuant to the terms of this Agreement. 
  
 “Libor
Loan(s)” means loan(s) bearing interest at the Adjusted LIBO Rate. 
  
 “Libor Margin” means
1.15% per annum. 
  
 “LIBO Rate” means for any Interest Period for any Libor Loan the rate per annum
appearing on page 3750 of the Dow Jones Markets (Telerate) Service (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, providing rate 

 
 8 

 
quotations comparable to those currently provided on such page of such Service as determined by Agent from time to time for purposes of providing quotations of interest rates applicable to Dollar
deposits in the London interbank market) at approximately 11:00 a.m. London time two (2) Business Days prior to the first day of such Interest Period as the rate for the offering of Dollar deposits having a term comparable to such Interest Period,
provided, that if such rate does not appear on such page, or if such page, in the reasonable judgment of Agent shall cease accurately to reflect the rate offered by leading banks in the London interbank market as reported by any publicly available
source of similar market data selected by Agent, the Libor Loan will be converted into an Alternate Rate Loan and shall bear interest at the Alternate Rate. 
  
 “Lien” means any mortgage, deed of trust, pledge, hypothecation, security interest, encumbrance, lien or charge of any kind, whether voluntarily incurred or arising by operation of Law
or otherwise, affecting the Property, including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, any lease in the nature thereof, and/or the filing of or agreement to give any financing statement
under the Uniform Commercial Code or comparable Law of any jurisdiction. 
  
 “Limited Partners”
means the limited partners’ of the General Partners. 
  
 “Loan” means the loan to be made to
the Borrower by the Lenders pursuant to the terms of this Agreement in the amount of the Commitment. 
  
 “Loans” means two or more Individual Loans. 
  
 “Loan Documents”
means, collectively, this Agreement, the Note, the Collateral Documents, the Indemnity and any other certificates, documents or agreements of any type or nature heretofore or hereafter executed or delivered by the Borrower and/or any one or more of
its Affiliates to the Lenders in any way relating to or in furtherance of this Agreement, in each case as the same may from time to time be supplemented, modified, amended, restated or extended. 
  

“Loan Proceeds” means any and all advances of the Loan made by the Lenders to or for the benefit of the Borrower. 
  
 “Loan-to-Value Ratio” means the ratio, stated as a percentage, of the Loan to the Appraised Value of the Property.

  
 “London Banking Day” means any day on which dealings and deposits in Dollars are transacted in
the London interbank market. 
  
 “Major Lease” means any lease of the Building which affects
together with any other existing leases with the same tenant more than 27,000 square feet of rentable space in the Building or which would affect more than 5% of the gross rental income of the Building. 
  
 “Management Agreement” means each agreement between the Borrower and the Management Company pursuant to which the
Management Company is managing the Building. 

 
 9 

  
 “Management Company” means Douglas Emmett and Company, a
California corporation. 
  
 “Material Adverse Effect” means (a) a materially adverse effect on the
assets, business, operations, properties or condition (financial or otherwise) of the Borrower or the General Partner, (b) a material impairment of the ability of the Borrower or the General Partner to perform in all material respects any of its
material obligations hereunder or under the Note or any other Loan Documents, or (c) a material impairment of the validity or enforceability of, or a material impairment of the rights, remedies or benefits available to the Lenders under this
Agreement or the Note or any of the other Loan Documents. 
  
 “Maturity Date” means the date which
is five (5) years from the Closing Date. 
  
 “Multiemployer Plan” means any employee benefit plan of
the type described in Section 4001(a)(3) of ERISA. 
  
 “Nestle Lease” means that certain office
lease dated December 22, 1987, between Nestle USA, Inc., a Delaware corporation, formerly known as Nestle Food Company, a Delaware corporation, and Carnation Company, a Delaware corporation, as tenant, and Borrower (as successor in interest to Eight
Hundred North Brand Boulevard, a California limited partnership), as landlord, as said lease has been amended. 
  
 “Net Operating Income” means the amount by which Gross Revenues exceed Operating Expenses. 
  
 “Note” or “Notes” means the promissory note executed and delivered by the Borrower to the Lenders pursuant to Section 3.1(a)(2) hereof in the principal amount of $90,000,000 (and any promissory notes that
may be issued in substitution, renewal, extension, replacement or exchange therefor). 
  
 “Obligations” means all present and/or future obligations of every kind or nature of the Borrower or any Party at any time and/or from time to time owed to the Lenders under any one or more of the Loan Documents,
whether due or to become due, matured or unmatured, liquidated or unliquidated, or contingent or noncontingent, including obligations of performance as well as obligations of payment, and including interest that accrues after the
commencement of any bankruptcy or insolvency proceeding by or against the Borrower, the General Partner or any Party. 
  
 “Operating Account” means the account maintained by Borrower into which all Gross Revenues are deposited and from which all Operating Expenses are paid. 
  
 “Operating Expenses” means for any period all costs and expenses other than the cost of tenant improvements and leasing commissions incurred in connection
with or arising from the ownership, operation, management, repair, replacement, maintenance, use or occupancy of the Property or any part thereof, including reserves for replacements with respect to the Property in the amount of 9 cents per annum
for each rentable square foot of space in the Property, whether or not such reserves are actually maintained by the Borrower, which reserves 

 
 10 

 
shall have been determined by a Qualified Engineer commissioned by the Agent to inspect the Property prior to the Closing Date. 
  
 “Opinion of Counsel” means a written legal opinion of Allen, Matkins, Leck, Gamble & Mallory, counsel to the Borrower, in form and substance
satisfactory to the Agent and its counsel, together with copies of any factual certificates relied on in rendering such opinion. 
  
 “Party” means any Person (including the Borrower and/or any Affiliates of the Borrower), other than the Lenders, which now or hereafter is a party to any of the Loan Documents. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereof established under ERISA. 

 
 “Percentage Interest” means the percentage of the Commitment allocated to each Lender which, as of the Closing
Date, is allocated 100% to LB Kiel and, thereafter, the percentage of the Commitment assigned to or retained by a Lender pursuant to Section 9.27 hereof, determined by dividing the Assigned Amount allocated or assigned to or retained by said Lender
by $90,000,000 and multiplying the quotient by 100%. 
  
 “Permits” means all permits, leases,
licenses, agreements and franchises required for the operation, use, occupancy or sale of all or any portion of the Property. 
  
 “Permitted Encumbrances” means, with respect to the Property, all liens, restrictions and other title limitations approved by the Agent and its counsel in writing as permitted exceptions to the title policy covering
the Property and real estate taxes which are a lien but which are not then due and payable. 
  
 “Person” means any individual or entity, whether a trustee, corporation, general partnership, limited partnership, limited liability company, joint stock company, trust, unincorporated organization, bank, business
association, firm, joint venture, Governmental Agency, or otherwise. 
  
 “Personal Property” means
all of the Borrower’s right, title and interest, whether now existing or hereafter acquired, in and to all furniture, furnishings, fixtures, machinery, equipment, inventory, accounts, chattel paper, instruments, general intangibles and other
personal property of every kind, tangible and intangible, now or hereafter (a) with respect to tangible personal property, either (i) located on or about the Property, (ii) used or to be used in connection with the Property or (iii) incorporated or
intended to be incorporated into the Property, or (b) with respect to intangible personal property, relating to or arising with respect to the Property. 
  
 “Plan” means any employee benefit plan subject to ERISA and maintained by the Borrower or to which the Borrower is required to contribute on behalf of its employees. 

 
 “Prime Rate” means, the per annum rate of interest publicly announced from time to time by LB Kiel at Kiel,
Germany as its Prime Rate (which is not necessarily the lowest interest rate offered by LB Kiel). 

 
 11 

  
 “Principal Balance” means the outstanding principal balance of
the Note from time to time. 
  
 “Property” means the Real Property, the Personal Property, the
Leases, the Contracts, and to the extent transferable, all of borrower’s right, title and interest in and to all tangible and intangible assets of any nature relating solely to the Property, including, without limitation, (a) all warranties
upon the Improvements, (b) rights to any plans, specifications, engineering studies, reports, drawings and prints relating to the construction, modification and alteration of the Improvements, (c) all works of art, graphic designs and other
intellectual or intangible property used by borrower in connection with the Property, including any trade name associated with the Improvements, (d) all claims and causes of action arising out of or in connection with the Property and (e) the
Permits. 
  
 “Qualified Appraiser” means a California certified appraiser who is a member of the
Appraisal Institute and has at least five years experience in the valuation of commercial properties similar to the Property and located in the geographic area in which the Property is located. 
  

“Qualified Engineer” means a duly licensed structural engineer who has at least five years of experience investigating, inspecting and evaluating the
physical condition of commercial properties similar to the Property. 
  
 “Rate Request” means,
Borrower’s irrevocable telecopier notice, to be received by Agent by 11 a.m. New York time three (3) Business Days prior to the date specified in the Rate Request for the commencement of the Interest Period (which specified date must be a
Business Day), of: (a) its intention to have all or any portion of the Principal Balance under the Note bear interest as a Libor Loan; and (b) the Interest Period desired by borrower in respect of the amount specified expressly stating the starting
and ending date of such Interest Period. 
  
 “Real Property” means that certain real property
located at 800 North Brand Boulevard, Glendale, California, and the improvements located thereon, consisting of a 20-story, 545,920 rentable square foot Class A office tower and an adjacent parking garage with two levels of below ground parking and
six levels of elevated parking with a total of 1,552 parking spaces. 
  
 “Regulation D” means
Regulation D, as at any time amended, of the Board of Governors of the Federal Reserve System, or any other regulation in substance substituted therefor. 
  
 “Required Lenders” means one or more Lenders holding aggregate Percentage Interests of sixty-six and two-thirds percent (66 2/3%) or more. 
  
 “Reserve Account” means the interest bearing account to be maintained by Borrower with Agent pursuant to Section 5.13. 
  
 “Reserve Requirements” means for any day as applied to a Libor Loan, the aggregate (without duplication) of the rates (expressed as a decimal fraction) of reserve requirements in
effect on such day, if any, (including without limitation supplemental, marginal and emergency reserves) under any regulations of the Board of Governors of the Federal Reserve 

 
 12 

 
System or other Governmental Authority having jurisdiction with respect thereto dealing with reserve requirements prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D) required to be maintained by Lenders or its participants, if any. Without limiting the effect of the foregoing, the Reserve Requirement shall reflect any other reserves required to be maintained by any Lenders or
any Lender’s respective participants, if any, by reason of any Regulatory Change against (a) any category of liabilities which includes deposits by reference to which the LIBO Rate is to be determined as provided by this Agreement or (b) any
category of extensions of credit or other assets which includes loans the interest rate on which is determined on the basis of rates used in determining the LIBO Rate. 
  
 “Response Time” has the meaning set forth in Section 9.31 of this Agreement. 
  
 “Responsible Official” means when used with reference to the Borrower, any of the following corporate officers of DERA: Chief Executive Officer, President,
Senior Vice President, Chief Financial Officer, Treasurer, Vice President-Finance, General Counsel, and/or Secretary and with respect to any other Person, that certain individual or those individuals having authority to act for that Person in
connection with the matter in question. Except as otherwise specifically provided herein, any requirement that any document or certificate be signed or executed by any Person requires that such document or certificate be signed or executed by a
Responsible Official of such Person, and that the Responsible Official signing or executing such document or certificate on behalf of such Person shall be authorized to do so by all necessary corporate, partnership and/or other action. 

 
 “Right of Others” means, as to any property in which a Person has an interest, any legal or equitable claim,
right, title or other interest (other than a Lien) in or with respect to that property held by any other Person, and any option or right held by any other Person to acquire any such claim, right, title or other interest, including any option
or right to acquire a Lien. 
  
 “Standard Form Lease” has the meaning set forth in Section 9.29 of
this Agreement. 
  
 “Subordination, Non-Disturbance and Attornment Agreement” means an agreement
between a tenant of the Property and the Lenders, in the form attached hereto as Exhibit “B.” 
  
 “Subsidiary” means as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such
other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management
of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer
to a Subsidiary or Subsidiaries of the Borrower. 
  
 “Swap Party” means the Person providing the
Interest Rate Protection Agreement, which Person shall be a financial institution having a long-term senior unsecured indebtedness 

 
 13 

 
rating of A or better by Standard & Poor’s (if rated by Standard & Poor’s) and A2 or better by Moody’s Investor Service, Inc. (if rated by Moody’s Investor Service,
Inc.). 
  
 “Title Company” means Chicago Title Insurance Company or such other title insurer as
shall be approved by the Agent. 
  
 “to the best knowledge of” means, when modifying a
representation, warranty or other statement of any Person, that the fact or situation described therein is known by the Person (or, in the case of a Person other than a natural Person, known by the Responsible Official of that Person most likely to
know whether the representation, warranty or other statement is true) making the representation, warranty or other statement, to such individuals actual conscious awareness, without any imputed duty of further investigation or inquiry. 

 
 “Total Assets” means, at any date, the value of all of the assets of the Borrower and its wholly owned
Subsidiaries on a consolidated basis, determined in accordance with market value GAAP. 
  
 1.2    Use of Defined Terms.    Any defined term used in the plural shall refer to all members of the relevant class, and any defined term used in the singular shall refer to any one or
more of the members of the relevant class. 
  
 1.3    Accounting
Terms.    All accounting terms not specifically defined in this Agreement shall be construed in conformity with, and all financial data required to be submitted by this Agreement shall be prepared in conformity with, GAAP in
effect from time to time, and applied on a consistent basis, except as otherwise specifically prescribed herein, e.g., the audited annual and quarterly Financial Statements are currently based on market value GAAP rather than historical cost GAAP,
and monthly Financial Statements are prepared on cash basis accounting principles, consistently applied. 
  
 1.4    Exhibits and Schedules.    All exhibits and schedules to this Agreement, either as originally existing or as the same may from time to time be supplemented, modified or amended,
are incorporated herein by this reference. 
  
 ARTICLE 2 
 CREDIT FACILITY 
  
 2.1    General Provisions Regarding Loan and Borrowing Procedures. 
  
 (a)    Subject to the terms and conditions set forth in this Agreement, the Lenders agree to make the Loan to the Borrower, which Loan shall be in the amount of the Commitment and the Loan shall be disbursed to
the Borrower in accordance with the provisions of this Agreement. 
  
 (b)    The Loan shall be
evidenced by the Note and secured by the Deed of Trust and the other Collateral Documents. 
  
 (c)    If funding does not occur within three (3) Business Days of the Closing Date, then the Borrower shall give the Lenders notice (which notice must be received by the 

 
 14 

 
Agent prior to 11:00 a.m., New York City time, at least five (5) Business Days prior to the anticipated disbursement date) requesting that the Lenders make the advance of Loan Proceeds on the
disbursement date and specifying the amount to be borrowed. 
  
 (d)    The Borrower shall
reimburse the Agent for all costs and expenses associated with the Loan including, but not limited to, the fees and disbursements of Loeb & Loeb LLP (outside legal counsel to the Agent), recording fees and title insurance premiums. 

 
 (e)    The purpose of the Loan is to refinance the existing debt on the Property. Agent shall have the
right, but not the obligation, to investigate the use of Loan Proceeds. 
  
 2.2    Interest
Rates.    Notwithstanding anything herein to the contrary, if an Event of Default shall have occurred and be continuing, then, until such Event of Default is cured, the Lenders shall have the option to convert any Libor Loan
to an Alternate Rate Loan effective upon notice to the Borrower in accordance with the notice provisions set forth in this Agreement, and thereafter, if the Lenders elect to exercise such option, the interest rate on such Loan shall be the Alternate
Rate. 
  
 2.3    Principal and Interest and Late Payments. 
  
 (a)    Interest on the unpaid Principal Balance computed from the date of disbursement of the Loan to the Borrower
until repaid, whether computed at the Alternate Rate or the Adjusted LIBO Rate, shall accrue from the date of disbursement and shall be payable monthly in arrears on the applicable Interest Payment Date until the Note is repaid in full. If the
Borrower requests a disbursement of Loan Proceeds to an escrow in connection with its refinancing of the Property, the Borrower agrees to pay interest from the date the Loan Proceeds are disbursed by the Lenders to escrow regardless of when the
funds are actually disbursed by escrow to the Borrower or for the Borrower’s benefit. 
  
 (b)    If not sooner paid, the Principal Balance shall be due and payable on the Maturity Date as the same may be accelerated pursuant to the terms of the Loan Documents. 
  
 (c)    Should any installment of principal or interest or any fee or cost or other amount payable under any Loan
Document not be paid when due, it shall thereafter bear interest, at the option of Agent, at the Alternate Rate unless pursuant to the terms of this Agreement the Default Rate applies, in which event the Default Rate shall apply. 

 
 2.4    Late Payment Premium and Default Rate. 
  

(a)    Borrower shall pay to Agent a late payment premium in the amount of 5% of any payments of regular monthly principal, interest, fees or
other amounts payable under the Loan Documents made more than five (5) days after the due date thereof, which late payment premium shall be due with any such late payment; provided, however, such late payment premium shall not apply
unless Borrower has received written notice from Agent that such payment has not been received and such payment is not thereafter received within two (2) Business Days after receipt of said written notice by Borrower. 

 
 15 

  
 (b)    Upon the occurrence of an Event of Default, all
amounts outstanding under the Loan, whether principal, interest, fees or other amounts, shall bear interest at the Default Rate until all such amounts are paid in full. 
  
 2.5    Computation of Interest and Fees.    All interest and fees shall be computed on the basis of a year of 360 days and
paid for the actual number of days elapsed, including the first day and excluding the last day. If a Loan is repaid on the same day on which it is made one (1) day’s interest shall be paid on such Loan as well as any amounts payable pursuant to
Section 2.6. Any change in the Prime Rate or the Federal Funds Rate shall be effective as of the day on which such change in rate occurs. Each determination of an interest rate by Agent pursuant to any provision of this Agreement shall be conclusive
and binding on Borrower in the absence of manifest error. 
  
 2.6    Breakage
Costs.    Borrower agrees to compensate Lenders for any loss, cost or expense incurred by it as a result of (a) a default by Borrower in making a borrowing of, conversion into or continuation of a Libor Loan after Borrower
has given a notice requesting the same in accordance with the provisions of this Agreement, (b) a default by Borrower in making any prepayment after Borrower has given a notice thereof in accordance with the provisions of this Agreement, or (c) the
making of a prepayment of a Libor Loan on a day that is not the last day of an Interest Period with respect thereto. 
  
 2.7    Continuation Options.    Any Libor Loan may be continued upon the expiration date of its then current Interest Period by the Borrower pursuant to a Rate Request, provided that no
Libor Loan may be continued: (i) when any Default or Event of Default has occurred and is continuing and Agent has determined that such a continuation is not appropriate or (ii) after the date that is one month prior to the Maturity Date. If
Borrower fails to submit a Rate Request to Agent in accordance with the provisions of this paragraph, Agent shall continue the outstanding Libor Loan automatically as a one month Libor Loan. 
  
 2.8    Minimum Amounts and Maximum Number of Interest Periods.    All borrowings, conversions and continuations of the Loan
and all selections of Interest Periods shall be in such amounts and be made pursuant to such elections so that, after giving effect thereto, the aggregate principal amount of each LIBOR Loan shall be at least equal to $10,000,000. No more than three
(3) Libor Loan Interest Periods may be outstanding at any time under this Agreement and the Note. 
  
 2.9    Unavailability.    In the event, and on each occasion, that on the day two (2) Business Days prior to the expiration of any Interest Period, the Agent shall have determined in
good faith (which determination shall be conclusive and binding upon the Borrower) that U.S. Dollar deposits, in an amount approximately equal to the portion of the Principal Balance which is to bear interest at a particular Adjusted LIBO Rate
during a particular Interest Period in accordance with the provisions of this Agreement, are not generally available at such time in the London interbank market, or reasonable means do not exist for ascertaining the Adjusted LIBO Rate for such
particular Interest Period, the Agent shall so notify the Borrower, and the interest rate applicable to the portion of the Principal Balance with respect to which such Adjusted LIBO Rate was to pertain shall automatically convert to the Alternate
Rate as of the impending expiration date of an Interest Period, it being agreed that the Alternate Rate shall remain in effect 

 
 16 

 
thereafter with respect to such portion of the Principal Balance unless and until the Agent shall have determined in good faith (which determination shall be conclusive and binding upon the
Borrower) that the aforesaid circumstances no longer exist, whereupon the interest rate applicable to such portion of the Principal Balance shall be converted back to an Adjusted LIBO Rate determined in the manner hereinabove set forth in this
Agreement effective as of the first day of the month which commences three (3) Business Days or more after such good faith determination by the Agent. 
  
 2.10    Illegality.    If any change in any Law or in the interpretation thereof by any Governmental Agency charged with the administration or
interpretation thereof shall make it unlawful for any Lender to make or maintain a Libor Loan with respect to the Principal Balance or any portion thereof or to fund the Principal Balance or any portion thereof at an Adjusted LIBO Rate in the London
interbank market or to give effect to its obligations as contemplated by this Agreement, then, upon notice by the Agent to the Borrower in accordance with the notice provisions set forth in this Agreement, the interest rate applicable to such
portion of the Principal Balance shall be automatically converted to the Alternate Rate, it being agreed that any notice given by the Agent to the Borrower pursuant to this sentence shall, such change in Law or interpretation permitting, be
effective in so far as it pertains to any particular portion of the Principal Balance bearing interest at a particular Adjusted LIBO Rate on the impending expiration date of an Interest Period pertaining to such particular portion of the Principal
Balance, or shall, such change not so permitting, be effective immediately upon notice being given by the Agent to the Borrower, and that the Alternate Rate shall thereafter remain in effect with respect to such portion of the Principal Balance
unless and until the affected Lender shall have determined in good faith (which determination shall be conclusive and binding upon the Borrower) that the aforesaid circumstances no longer exist, whereupon the interest rate applicable to such portion
of the Principal Balance shall be converted to an Adjusted LIBO Rate determined in the manner hereinabove set forth in this Agreement effective three (3) Business Days after such good faith determination by the affected Lender. If the interest rate
applicable to any portion of the Principal Balance is converted from an Adjusted LIBO Rate to the Alternate Rate on a date other than the expiration date of the applicable Interest Period in accordance with the provisions of the preceding sentence,
the Borrower shall pay to the Agent on demand an amount equal to the breakage fees, if any, which would have been due pursuant to the provisions of Section 2.6 above if the portion of the Principal Balance bearing interest at such Adjusted LIBO Rate
was prepaid in full on the date of such conversion. 
  
 2.11    Increased
Costs.    The Borrower recognizes that the cost to any Lender of making or maintaining Libor Loans with respect to the Principal Balance or any portion thereof, may fluctuate, and, subject to the terms of Section 5.9 hereof,
the Borrower agrees to pay the Agent within ten (10) days after demand by the Agent an additional amount or amounts as the affected Lender shall reasonably determine will compensate said Lender for additional costs incurred by said Lender in
maintaining Libor Loans on the Principal Balance or any portion thereof as a result of: 
  
 (a)    the imposition after the date of this Agreement of, or changes after the date of this Agreement in, the Reserve Requirements and irrespective of whether the affected Lenders actually maintain all or any
portion of such reserve; or 

 
 17 

  
 (b)    any change, after the date of this Agreement, in
applicable Law or in the interpretation or administration thereof, by any Governmental Agency charged with the interpretation or administration thereof (whether or not having the force of Law), changing the basis of taxation of any payments to the
affected Lenders under this Agreement, the Note, the Deed of Trust or the other Loan Documents (other than taxes imposed on all or any portion of the overall net income of the affected Lenders by any state or country or by any political subdivision
or taxing authority), or imposing, modifying or applying any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, credit extended by, or any other acquisition of funds for loans by the affected
Lenders or imposing on the affected Lenders, or on the London interbank market, any other condition affecting this Agreement, the Note, the Deed of Trust or the other Loan Documents or the portion of the Principal Balance bearing interest at an
Adjusted LIBO Rate so as to increase the cost to the affected Lenders of making or maintaining a Libor Loan with respect to the Principal Balance or any portion thereof or to reduce the amount of any sum received or receivable by the affected
Lenders under this Agreement, the Note, the Deed of Trust or the other Loan Documents (whether of principal, interest or otherwise), by an amount deemed by the affected Lenders in good faith to be material, but without duplication for payments
required under subparagraph (a) above. 
  
 Any amount or amounts payable by the Borrower to the Agent pursuant to subparagraphs (a) or (b)
of this Section 2.11 shall be paid by the Borrower to the Agent within ten (10) days of receipt by the Borrower from the Agent of a statement setting forth the amount or amounts due and the basis for the determination from time to time of such
amount or amounts, which statement shall be conclusive and binding upon the Borrower provided such determinations are made on a reasonable basis. Failure on the part of the Agent to demand compensation for any increased costs in any Interest Period
shall not constitute a waiver of the Agent’s right to demand compensation for any increased costs incurred during any such Interest Period or in any other subsequent or prior Interest Period. 
  
 2.12    Voluntary Prepayments.    The Borrower may from time to time prepay the Loan, in
whole or in part, provided that the Borrower gives the Agent a facsimile notice: (a) at least thirty (30) days prior to the prepayment date to the effect that Borrower is considering prepayment of the Loan and (b) at least four (4) Business Days
prior to the prepayment date, the date upon which prepayment is to occur. The Borrower shall specify in the second notice: (i) the date and amount of the prepayment; (ii) in the case of a prepayment of a Libor Loan the expiration date of the
Interest Period applicable to the Libor Loan; and (iii) that its election to make the prepayment is irrevocable. Prepayment of all or a portion of the Loan may be made in accordance with this Section 2.12 provided, that: (1) the Principal
Amount prepaid is not less than $1,000,000 and in multiples of $100,000; (2) all accrued and unpaid interest to and including the date of such prepayment on the amount being prepaid is then paid; (3) any amounts payable pursuant to Section 2.6 above
are then paid; (4) if the prepayment occurs during the first year of the term of the Loan, Borrower shall pay to Agent a prepayment premium equal to one percent (1%) of the amount being prepaid; (5) if the prepayment occurs during the second year of
the term of the Loan, Borrower shall pay to Agent a prepayment premium equal to one-half percent (.5%) of the amount being prepaid; and (6) all fees and expenses (including, but not limited to the fees and expenses of Agent’s attorneys)
incurred by Agent in connection with the Loan or in connection with the prepayment are then paid. 

 
 18 

  
 2.13    Manner and Treatment of Payments.

  
 (a)    Each payment hereunder or on the Note or under any other Loan Document shall be made
to the Agent at the place and time(s) provided herein. Agent hereby directs and Borrower hereby agrees that all payments under the Note shall be made by wire transfer to an account to be designated by Agent. All payments shall be made in lawful
money of the United States of America. 
  
 (b)    Each payment of any amount payable by the
Borrower under this Agreement and/or any other Loan Document shall, to the extent permitted by applicable Law, be made free and clear of, and without reduction by reason of, any charges imposed on the Lenders by any Governmental Agency, central bank
or comparable authority. 
  
 (c)    Payments of principal or interest shall be credited by
Lenders as of the date of receipt; provided, however, if such payment is not received by Agent prior to 3:00 p.m. Eastern Time, Borrower shall reimburse Agent for any cost or damage suffered by Agent or the other Lenders if Agent is unable to
wire transfer the payment to the other Lenders such that the other Lenders receive their share of said payment on the same day as Agent has received it. 
  
 (d)    In the event Agent prefunds the principal or interest payments to the other Lenders prior to the actual receipt by Agent of a payment on the date due and Borrower fails to
make such payment on the date due, Borrower shall reimburse Agent for any cost or damage suffered by Agent on account of the prefunding of such payments to the other Lenders on the date due. 
  
 (e)    All payments by Borrower to Agent hereunder (other than payments under the Fee Letter, which payments are for the account of Agent) shall be
made for the account of the Lenders as their interests shall appear. 
  
 2.14    Funding
Sources.    Nothing in this Agreement or in the Note shall be deemed to obligate the Lenders to obtain funds for the Loan in any particular place or manner or to constitute a representation by the Lenders that they have
obtained or will obtain the funds for the Loan in any particular place or manner. 
  
 2.15    Failure to Charge Not Subsequent Waiver.    Any decision by the Agent not to require payment of any interest (including default interest), fee, cost or other amount
payable under any Loan Document on any occasion shall in no way limit or be deemed a waiver of the right to require full payment of any other interest (including default interest), fee, cost or other amount payable under any Loan Document on
any other or subsequent occasion. 
  
 ARTICLE 3 
 LOAN CONDITIONS 
  
 3.1    Loan.    The obligation of the Lenders to make the Loan is subject to the following conditions precedent, each of which shall be satisfied prior to the funding of any Loan
Proceeds: 
  
 (a)    The Agent shall have received all of the following, each of which shall be
originals unless otherwise specified, each as to which the Borrower is a Party properly executed 

 
 19 

 
by a Responsible Official of the Borrower, and each in form and substance satisfactory to the Agent and its legal counsel: 
  
 (1)    executed counterparts of this Agreement, sufficient in number for distribution to the Agent and the Borrower and their respective counsels;

  
 (2)    the Note executed by the Borrower payable to the order of the Lenders; 

 
 (3)    a Deed of Trust granting to the Lenders a duly perfected first priority Lien on the Real Property,
the Personal Property and the Interest Rate Protection Agreement; 
  
 (4)    an Indemnity with
respect to the Property, pursuant to which the Borrower agrees to defend, indemnify and hold the Lenders harmless from and against all claims, liabilities, losses or other costs arising in connection with Hazardous Materials located on or otherwise
relating to the Property, and containing all representations, warranties, covenants and other agreements required by the Agent with respect to Hazardous Materials; 
  
 (5)    current Financial Statements including, but not limited to, a 12 month proforma and income and expense statement, and such other financial data
relating to the Property, the Borrower, the General Partners and DERA, as the Agent shall require; 
  
 (6)    an Appraisal of the Property indicating a Loan-to-Value Ratio of not more than sixty percent (60%); 
  
 (7)    the policies of hazard insurance required by the Deed of Trust (together with evidence of the payment of the premiums therefor) which policies will contain an endorsement
specifically providing that, in case of any damage, all insurance proceeds will be paid to the Agent (except as otherwise provided in the Deed of Trust) so long as the Agent certifies to the insurer that the sum of the unpaid principal amount of the
Note and the other Obligations secured by the Deed of Trust exceeds the proceeds of insurance; 
  
 (8)    an Environmental Audit Report with respect to the Property; 
  
 (9)    evidence that the Property is not located in an area designated by the Secretary of Housing and Urban Development as having special flood-hazards, or, if any such Property is so located, evidence that the
flood-hazard insurance required by the NFIA of 1968, as amended (42 USC 4013, et seq.) has been obtained; 
  
 (10)    a paid title insurance policy, or commitment therefor in the amount of $90,000,000, in ALTA Extended Coverage or other form approved by the Agent, issued by the Title Company which shall insure the Deed of
Trust to be a valid first lien on the Property free and clear of all defects and encumbrances except the Permitted Encumbrances, and shall contain: 
  
 (i)    full coverage against mechanics’ liens (filed and inchoate), 

 
 20 

  
 (ii)    a reference to the survey but no survey exceptions
except those theretofore approved by the Agent and its counsel, and 
  
 (iii)    such
affirmative insurance and endorsements as the Agent and its counsel may require; and shall be accompanied by such reinsurance agreements between the Title Company and title companies approved by the Agent, in ALTA 1961 Facultative form and with
direct access provisions, as the Agent may require; 
  
 (11)    copies of the permanent
certificate of occupancy for the Building, if available, and if not available the temporary certificate of occupancy, in each case issued by the appropriate Governmental Agency (if the permanent certificate of occupancy is not available, the
Borrower shall represent to Agent that it has been applied for or is in the process of being applied for and shall demonstrate to the satisfaction of the Agent that there are no material conditions to the issuance of the permanent certificate of
occupancy which have not been satisfied); 
  
 (12)    UCC searches against the Borrower which
searches shall disclose no financing statements filed or recorded against the Personal Property; 
  
 (13)    a survey certified to the Lenders and the Title Company and showing with respect to the Property: 
  
 (i)    the location of the perimeter of the Property by courses and distances or by reference to filed maps, 
  
 (ii)    all easements, rights-of-way, and utility lines referred to in the title policy required by this Agreement or which actually service or cross
the Property, to the extent visible or discoverable by a physical inspection, 
  
 (iii)    the
lines of the streets abutting the Property and the width thereof, and any established building lines, 
  
 (iv)    encroachments and the extent thereof upon the Property, 
  
 (v)    the improvements constructed on the Property, and the relationship of the improvements by distances to the perimeter of the Property, established building lines and street lines, and 

 
 (vi)    if the Property is described as being on a filed map, a legend relating the survey to said map;

  
 (14)    executed copies of each lease affecting the Property; 
  
 (15)    an assignment of all Contracts relating to the Property and copies of such Contracts; 

 
 21 

  
 (16)    such evidence as the Agent may require to verify
that the Borrower is duly organized and validly existing in the State of California, including, without limitation, copies of its Statement of Partnership, if any, certified by a Responsible Official; 
  
 (17)    a copy of the Interest Rate Protection Agreement certified by a Responsible Official as being a true, correct
and complete copy of such Interest Rate Protection Agreement; 
  
 (18)    copies of the
partnership agreement of the Borrower, certified by a Responsible Official, together with such written consents as shall be required under the terms of said partnership agreement to the consummation of the Loan transaction described in this
Agreement and the execution and delivery of the other Loan Documents; 
  
 (19)    copies of the
partnership agreements of the General Partners, certified by a Responsible Official, together with: 
  
 (i)    such written consents as shall be required under the terms of said partnership agreements to the consummation of the loan transaction described in this Agreement and the execution and delivery of the other
Loan Documents, and 
  
 (ii)    such evidence as Agent may require to verify that the General
Partners are duly organized, validly existing and in good standing in the State of California, including, without limitation, copies of their respective Certificates of Limited Partnership certified by a Responsible Official; 

 
 (20)    with respect to DERA, a copy of its Articles of Incorporation and By-Laws certified by a
Responsible Official, together with: 
  
 (i)    a good standing certification from the State of
California, 
  
 (ii)    resolutions, certified by the corporation secretary, or the shareholders
or directors of the corporation authorizing the consummation of the transactions contemplated hereby, and 
  
 (iii)    a certificate of the corporate secretary as to the incumbency of the officers executing this Agreement or any of the other Loan Documents required hereby on behalf of the General Partner and the Borrower;

  
 (21)    the Opinion of Counsel; 
  
 (22)    a pledge of the Operating Account of Borrower maintain at United California Bank and a control agreement with such depository bank to perfect
Lenders’ security interest therein; 
  
 (23)    such consents and other agreements from the
Swap Party as Agent shall reasonably request; 
  
 (24)    the Fee Letter; and 

 
 22 

  
 (25)    such other certificates, documents, consents or
opinions as the Agent may reasonably require; 
  
 (b)    The representations and warranties of
the Borrower contained in Article 4 shall be true and correct as of the Closing Date and as of the date of the advance of Loan Proceeds; 
  
 (c)    The Borrower shall be in compliance with all the terms and provisions of the Loan Documents, and no Default shall have occurred. 
  
 3.2    Property Information.    Notwithstanding anything to the contrary contained in Section 3.1, the obligation of the
Lenders to make advances of Loan Proceeds is subject to the further condition that the Agent shall have received prior to the funding of the Loan Proceeds such additional information relating to the Property as the Agent shall reasonably require.

  
 3.3    The Property.    The Property shall be in compliance with
the following conditions: 
  
 (a)    The Property shall be one hundred percent owned by the
Borrower; 
  
 (b)    The interest of the Borrower in the Property shall be a fee interest;

  
 (c)    The Property shall be free of Liens other than Permitted Encumbrances; 

 
 (d)    The Building shall be free of material structural defects, as confirmed by a Conditions Survey, or
if such material defects exist, they shall be clearly defined in the Conditions Survey, and an appropriate and reasonable remedial budget shall be attached to the Conditions Survey; 
  
 (e)    If the Environmental Audit Report discloses that the Property is subject to Hazardous Materials, Borrower shall demonstrate that all adverse
environmental conditions identified in the Environmental Audit Report have been remedied to the satisfaction of the Environmental Consultant; 
  
 (f)    Hazard insurance is being maintained on terms and conditions acceptable to the Agent as required by the terms of the Deed of Trust including, but not limited to, earthquake
insurance; 
  
 (g)    The Agent shall have received a rent roll certified by a Responsible
Official and a property operating history in such format as shall be satisfactory to the Agent and as may be required in order to obtain an Appraisal; 
  
 (h)    The Agent shall have received Estoppel Certificates satisfactory to the Agent from tenants under leases covering the total leased rentable area in the Building; 

 
 (i)    The Agent shall have received a Subordination, Non-Disturbance and Attornment Agreement from the
tenants under all Major Leases and under all other leases which are subordinate to the Deed of Trust; 

 
 23 

  
 (j)    Borrower shall have delivered to Agent copies of all
Permits and approvals by Governmental Agencies required for the ownership and operation of the Property; 
  
 (k)    Agent shall have received a written report from an engineer engaged by Agent at the expense of Borrower setting forth the results of a study of probable loss associated with earthquake risk, which study
shall be used to determine the appropriate amount of earthquake insurance coverage to be maintained by Borrower; and 
  
 (l)    The Agent shall have received such other documentation as may be reasonable required by the Agent. 
  
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES 
  
 The Borrower represents and warrants to the Lenders, as of the date hereof that: 
  
 4.1    Existence and Qualification; Power; Compliance With Laws.    The Borrower is a general partnership duly formed and validly existing under the Laws
of the State of California. The Borrower is duly qualified or registered to transact business in each other jurisdiction in which the conduct of its business or the ownership or leasing of its properties makes such qualification or registration
necessary. The Borrower has all requisite power and authority to conduct its business, to own and lease its properties and to execute, deliver and perform all of its Obligations under the Loan Documents. To the best knowledge of the Borrower, the
Borrower is in substantial compliance with all Laws and other legal requirements applicable to its business, has obtained all material authorizations, consents, approvals, orders, licenses and permits from, and has accomplished all material filings,
registrations and qualifications with, or obtained exemptions from any of the foregoing, from any Governmental Agency that is necessary for the transaction of its business. The Borrower is in possession of all material Permits and authorizations
required by applicable Laws for the ownership and operation of the Property as it is now operated. 
  
 4.2    Authority; Compliance With Other Agreements and Instruments and Government Regulations.    To the best knowledge of the Borrower, neither the Borrower, the General Partners nor
DERA are in default under any Law, order, writ, judgment, injunction, decree, determination or award by which it is bound, or under any material Contract, the violation or breach of which would have a Material Adverse Effect. The execution, delivery
and performance by the Borrower of the Loan Documents have been duly authorized by all necessary action, and do not and will not: 
  
 (a)    Require any consent or approval not heretofore obtained of any partner or creditor; 
  
 (b)    Violate or conflict with any provision of the Borrower’s agreement of partnership; 
  
 (c)    Result in or require the creation or imposition of any Lien or Right of Others (other than as provided under the Loan Documents) upon or with respect to the Property;

 
 24 

  
 (d)    To the best knowledge of the Borrower, violate any
provision of any Law (including, without limitation, Regulations G, T, U and/or X of the Board of Governors of the Federal Reserve System), order, writ, judgment, injunction, decree, determination or award presently in effect, having
applicability to the Borrower and by which it is bound; or 
  
 (e)    To the best knowledge of
the Borrower, result in a breach of or constitute a default under, or cause or permit the acceleration of any obligation owed under, any material Contract, the violation or breach of which would have a Material Adverse Effect. 

 
 4.3    No Governmental Approvals Required.    To the best knowledge of the
Borrower, no authorization, consent, approval, order or Permit from, or filing, registration or qualification with, or exemption from any of the foregoing, from any Governmental Agency is or will be required to authorize or permit under applicable
Law the execution, delivery and performance by the Borrower of its Obligations. 
  
 4.4    Environmental and Industrial Hygiene Compliance.    Neither the Borrower nor any Affiliate of the Borrower has received any notice from any Governmental Agency of any violation of
any Environmental Law with respect to the Property. Except as disclosed in the reports heretofore delivered to Agent, to the best knowledge of Borrower, there has been no generation, manufacture, storage or disposal of Hazardous Materials on, under
or about the Property. Notwithstanding the foregoing, no breach of representation or warranty shall be deemed to have occurred under this Section 4.4 solely on account of the existence of Hazardous Materials on, under or about the Property if the
use and presence of such Hazardous Materials are usual and customary with respect to the use and operation of the Property by the Borrower, or any other user of the Property and such use and presence of Hazardous Materials is not a violation of any
Law. 
  
 4.5    Financial Statements.    The Borrower has furnished to
the Agent the audited consolidated market value balance sheet of DERA as at December 31, 2000, and the unaudited balance sheets of Borrower, DERF and DERF2 as at September 30, 2001. Such balance sheets and statements fairly present the financial
condition, results of operations and changes in financial position of the subjects thereof as at such dates and for such periods, in conformity with GAAP, consistently applied, as modified pursuant to Section 1.3 hereof. 
  
 4.6    No Other Liabilities; No Material Adverse Changes.    The Borrower does not have any
material liability or material Contingent Obligation other than liabilities and obligations incurred in the ordinary course of business. Neither DERF, DERF2 nor DERA have any material liability or material Contingent Obligation not reflected or
disclosed in the Financial Statements or notes thereto. Since the date of the Financial Statements, neither the Borrower, DERF, DERF2 nor DERA has suffered any one or more changes in its condition (financial or otherwise) or its assets, properties,
liabilities or prospects, which alone or in the aggregate would be materially adverse to the Borrower, DERF, DERF2 or DERA. Without limiting the generality of the foregoing, except as disclosed in Schedule 4.6 attached hereto, since the date of the
Financial Statements, there has not been any: 

 
 25 

  
 (a) Material Adverse Effect with respect to the business operations, properties,
assets or the condition (financial or otherwise) of the Borrower, DERF, DERF2 and DERA, taken as a whole; 
  
 (b)
Material transaction by the Borrower, DERF, DERF2 and DERA, except in the ordinary course of business, which, with respect to DERA, consists primarily of acquiring commercial real property and acting as the general partner of various investment
partnerships, and with respect to the Borrower, DERF and DERF2, consists primarily of acquiring, leasing and operating commercial and multifamily residential real property; 
  
 (c) Material damage, destruction or loss, whether covered by insurance or not, involving or affecting the business, operations, properties, assets or condition (financial
or otherwise) of the Borrower, DERF, DERF2 and DERA, taken as a whole; 
  
 (d) Labor dispute, strike or other event
or condition of any character, materially and adversely affecting the business, assets, prospects or condition (financial or otherwise) of the Borrower, DERF, DERF2 and DERA, taken as a whole; 
  

(e) Entry into any significant commitment by the Borrower, DERF, DERF2 or DERA (including, without limitation, any borrowing or capital expenditure) except in the
ordinary course of business; 
  
 (f) Material sale, lease or other transfer of any of the assets of the Borrower,
DERF, DERF2 or DERA, except in the ordinary course of business; 
  
 (g) Amendment or termination of any material
Contract, agreement, Permit or other understanding or commitment to which the Borrower, DERF, DERF2 or DERA is a party, except in the ordinary course of business; 
  
 (h) Waiver or release of any material right or claim of the Borrower, DERF, DERF2 or DERA, except in the ordinary course of business; 
  
 (i) Material change in the accounting methods or practices of the Borrower, DERF, DERF2 or DERA; 
  
 (j) Material revaluation of the assets of the Borrower, DERF, DERF2 and DERA, taken as a whole, which has resulted in a Material Adverse
Effect; 
  
 (k) Other event or condition of any character which, to the best knowledge of the Borrower, may have a
Material Adverse Effect on the business, operations, properties, assets or condition (financial or otherwise) of the Borrower, DERF, DERF2 and DERA, taken as a whole; or 
  
 (l) Agreement to do any of the things described in this Section 4.6. 
  
 4.7    Title to Property.    To the best knowledge of the Borrower, good and valid title to the Property is vested in the Borrower, free and clear of all
Liens, other than the Permitted Encumbrances and Liens permitted pursuant to Section 6.1. None of such Permitted 

 
 26 

 
Encumbrances or Liens materially and adversely affect (a) the ability of the Borrower to pay in full the principal and interest on the Note in a timely manner or (b) the use of the Property for
the use currently being made thereof, the operation of the Property as currently being operated or the value of the Property. Upon the execution by the Borrower of the Deed of Trust and the recording thereof, and upon the execution and filing of
UCC-1 financing statements, the trustee under the Deed of Trust will have a valid first lien on the Property and a valid security interest in the Personal Property subject to no Liens other than the Permitted Encumbrances and the Liens permitted
pursuant to Section 6.1. 
  
 4.8    Litigation.    Except as disclosed
in Schedule 4.8 attached hereto, there are no actions, suits or proceedings pending or, to the best knowledge of the Borrower, threatened against or affecting the Borrower, DERF, DERF2 or DERA or any property of any of them, in any court of law or
before any Governmental Agency involving potential exposure to the Borrower, DERF, DERF2 or DERA of $100,000 or more or, in the aggregate, involving potential exposure to the Borrower, DERF, DERF2 or DERA of $500,000 or more. 

 
 4.9    Binding Obligations.    Each of the Loan Documents to which the Borrower
is a Party will, when executed and delivered by the Borrower, constitute legal, valid and binding obligations, enforceable against them in accordance with their terms, subject, as to enforcement, only to equitable principles and bankruptcy,
insolvency, reorganization, moratorium or similar Laws then in effect affecting the enforceability of the rights of creditors generally. 
  
 4.10    ERISA. 
  
 (a) Except as disclosed in Schedule
4.10, there are no Plans; 
  
 (b) With respect to each Plan, if any, described in Schedule 4.10: 

 
 (1) such Plan complies in all material respects with ERISA and any other applicable Law; 
  
 (2) such Plan has not incurred any material “accumulated funding deficiency”, as that term is defined in Section 302 of ERISA;

  
 (3) no “reportable event” (as defined in Section 4043 of ERISA) has occurred that could result in the
termination or disqualification of such Plan; 
  
 (4) neither the Borrower nor the General Partner has engaged in
any “prohibited transaction” (as defined in Section 4973 of the Internal Revenue Code of 1934, as amended); 
  
 (c) To the best knowledge of the Borrower, neither the Borrower nor the General Partner is or has been a party to or has any employees who are covered by any Multiemployer Plan; and 
  
 (d) To the best knowledge of the Borrower, the Borrower and the General Partner are in compliance with each covenant contained in Section
6.3. hereof. 

 
 27 

 4.11    Regulations G, T, U and X; Investment Company Act.    Neither the
Borrower, DERF, DERF2 nor DERA is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of “purchasing” or “carrying” any “margin stock” or “margin
security” within the meanings of Regulations G, T, U or X, respectively, of the Board of Governors of the Federal Reserve System. If requested by the Agent, the Borrower will furnish or will cause DERF, DERF2 and DERA to furnish the Agent with
a statement or statements in conformity with the requirements of Federal Reserve Forms G-3 and/or U-1 referred to in Regulations G or U of said Board or Governors. No part of the proceeds of the Loan will be used to purchase or carry any such
“margin security” or “margin stock” or to extend credit to others for the purpose of purchasing or carrying any such “margin security” or “margin stock” in violation of Regulations G, T, U or X of said Board
of Governors. The Borrower is not (a) an “investment company” or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company”
or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as
amended; or (c) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money. To the best knowledge of the Borrower, neither the Borrower, DERF, DERF2 nor DERA is or is required to be
registered under the Investment Company Act of 1940. 
  
 4.12    Disclosure.    To the best knowledge of the Borrower, no written statement made by the Borrower, DERF, DERF2 or DERA to the Lenders in connection with this Agreement, or in
connection with the Loan, contains any untrue statement of a material fact or omits a material fact necessary to make the statement made not misleading. To the best knowledge of the Borrower, there is no fact which the Borrower has not disclosed to
the Agent in writing which materially and adversely affects the businesses, operations, properties, profits or condition (financial or otherwise) of the Borrower, DERF, DERF2 or DERA, or the ability of the Borrower to perform its Obligations.

  
 4.13    Tax Matters.    Except as disclosed in Schedule 4.13
attached hereto, the Borrower, DERF, DERF2 and DERA have duly filed, or caused to be filed, on a timely basis all appropriate foreign, federal, state and local tax returns and reports for income taxes, sales taxes, withholding taxes, employment
taxes, property taxes, business taxes and all other tax returns of every kind whatsoever required to be filed in connection with the ownership, operations and businesses of the Borrower, DERF, DERF2 and DERA and all such tax returns and reports
accurately reflect all taxes owing for the periods indicated. The Borrower, DERF, DERF2 and DERA have paid in full all taxes, interest, penalties, assessments or deficiencies shown to be due on such tax returns and reports, or claimed to be due by
any such taxing authority, except for any such taxes as are being contested in good faith and by appropriate proceedings. The charges, accruals and reserves on the Financial Statements in respect of taxes are, to the best knowledge of the Borrower,
adequate. 
  
 4.14    Fiscal Year.    The Borrower, DERF, DERF2 and
DERA each operate on a fiscal year ending on December 31. 
  
 4.15    Insolvency and Related
Matters.    The Borrower, DERF, DERF2 and DERA are able to pay their debts as they mature, and have not (a) made any assignment for the benefit of 

 
 28 

 
creditors; (b) admitted in writing their inability to pay their debts as they mature; (c) applied for or consented to the appointment of a receiver, trustee or similar official for their affairs;
or (d) been the subject of any bankruptcy, insolvency, reorganization or liquidation proceeding, or any other proceeding for relief under any bankruptcy law or any law for the relief of debtors or benefit of creditors. 
  
 4.16    Intangible Assets.    Except for restrictions upon use specified in the agreements
whereby the Borrower, DERF, DERF2 or DERA has been granted the right to use an Intangible Asset, which agreements are set forth on Schedule 4.16 and which restrictions on use will not, individually or in the aggregate, impair the ability of the
Borrower, DERF, DERF2, or DERA from continuing to conduct their businesses in the same manner as presently conducted, the Borrower, DERF, DERF2 and DERA own, or possess the unrestricted right to use, all trademarks, trade names, copyrights, patents,
patent rights, licenses and other Intangible Assets that are used in the conduct of their businesses as now operated, and no such Intangible Asset, to the best knowledge of the Borrower, conflicts with the valid trademark, trade name, copyright,
patent, patent right or Intangible Asset of any other Person to the extent that such conflict would have a Material Adverse Effect. Schedule 4.16 hereto constitutes a true and correct list of all of such Intangible Assets which are subject to
restrictions. 
  
 4.17    Schedules.    The foregoing representations
and warranties of the Borrower contained in this Article 4 notwithstanding, the Borrower represents that the various exceptions listed in the Schedules referred to in this Article 4 and in Section 6.1 were current as of the date of the
Borrower’s transmittal of the relevant Schedule to the Agent prior to the date hereof. Borrower believes, and hereby represents and warrants to the Lenders as of the date hereof, that no further exceptions exist with respect to any of the
aforementioned Schedules which are, or are likely to become, in any respect materially adverse to the interests of the Lenders or which would be likely to cause an Event of Default hereunder. Borrower’s representations and warranties are hereby
modified consistent with the foregoing. 
  
 4.18    Tenant
Leases.    Except as set forth on the lease abstracts and Estoppel Certificates delivered by the Borrower to the Agent, there are no tenant leases affecting the Property which (i) impose any liability or obligation on the
Borrower with respect to any property other than the Property or (ii) would impose obligations on the Borrower, as landlord, which are not substantially similar to obligations imposed on the Borrower with respect to substantially all other leases
affecting the Property other than expansion options and tenant improvement obligations in connection with expansion space. 
  
 4.19    Ownership by Benefit Plan Investor.    No class of the Borrower’s, DERF’s, DERF2’s or DERA’s outstanding equities is subject to “significant”
ownership by “benefit plan investors” as those terms are defined in DOL Reg. 2510.3-101(f). 
  
 4.20    Modifications to Organizational Documents.    There will be no material modifications to the terms of the partnership agreement of the Borrower, DERF or DERF2 without the prior
written approval of the Agent which consent will not be unreasonably denied or delayed. 

 
 29 

  
 4.21    Fraudulent
Conveyance.    The Borrower (a) has not entered into this Agreement or any other Loan Document with the actual intent to hinder, delay, or defraud any creditor and (b) has received reasonably equivalent value in exchange for
its Obligations under the Loan Documents. Giving effect to the transactions contemplated by the Loan Documents, the fair saleable value of the Borrower’s assets exceeds and will, immediately following the execution and delivery of the Loan
Documents, exceed the Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed or contingent liabilities. The fair saleable value of the Borrower’s assets is and will, immediately following the
execution and delivery of the Loan Documents, be greater than the Borrower’s assets is and will, immediately following the execution and delivery of the Loan Documents, be greater than the Borrower’s probable liabilities, including the
maximum amount of its contingent liabilities or its debts as such debts become absolute and matured. The Borrower’s assets do not, and immediately following the execution and delivery of the Loan Documents will not, constitute unreasonably
small capital to carry out its business as conducted or as proposed to be conducted. The Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including, without limitation, contingent liabilities and other
commitments) beyond its ability to pay such debts as they mature (taking into account the timing and amounts to be payable on or in respect of Obligations of the Borrower). 
  
 4.22    Access/Utilities.    The Property has adequate rights of access to public ways and is served by adequate water,
sewer, sanitary sewer and storm drain facilities. All public utilities necessary to the continued used and enjoyment of the Property as presently used and enjoyed are located in the public right-of-way abutting the Property without passing over
other property. All roads necessary for the full utilization of the Property for its current purpose have been completed and dedicated to public use and accepted by all Governmental Authorities or are the subject of access easements for the benefit
of the Property. 
  
 4.23    Special Assessments.    Except as
disclosed in the title insurance policy, there are no pending or, to the knowledge of the Borrower, proposed special or other assessments for public improvements or otherwise affecting the Property, nor, to the knowledge of the Borrower, are there
any contemplated improvements to the Property that may result in such special or other assessments. 
  
 4.24    Flood Zone.    The Property is not located in a flood hazard area as defined by the Federal Insurance Administration. 
  
 4.25    Condemnation Proceedings.    There are no pending or proposed condemnation proceedings with respect to the Property.

  
 4.26    Brokers.    Borrower has not dealt with any Person who is
or may be entitled to any finder’s fee, brokerage commission, loan commission or other sum in connection with the Loan except Secured Capital Corporation. Borrower hereby agrees to indemnify and defend Lenders and hold Lenders harmless against
any and all loss, liability, cost or expense, including reasonable attorneys’ fees which Lenders may suffer or sustain should such warranty or representation prove inaccurate in whole or in part or in connection with any fee, commission or
other sum payable to Secured Capital Corporation, the payment of which is the sole obligation of Borrower. 

 
 30 

  
 4.27    Survival of Representations and
Warranties.    All representations and warranties contained herein or in any other Loan Document, or in any certificate or other writing delivered by or on behalf of any one or more of the Parties to any Loan Document, shall
survive the making of the Loan hereunder and the execution and delivery of the Note and have been or will be relied upon by the Lenders, notwithstanding any investigation made by the Lenders or on their behalf; provided, however, the
Agent shall notify the Borrower prior to the closing of the Loan of any inaccuracy in the Borrower’s representations and warranties theretofore discovered by the Agent. 
  
 ARTICLE 5 
 AFFIRMATIVE COVENANTS 
 (OTHER THAN INFORMATION AND REPORTING REQUIREMENTS) 
  
 So long as the Loan remains unpaid, or any other Obligation remains unpaid or unperformed, the Borrower shall, and shall cause DERF, DERF2 and DERA to: 
  
 5.1    Payment of Taxes and Other Potential Liens.    Pay and discharge promptly all taxes, assessments and governmental
charges or levies imposed upon any of them, upon their respective properties or any part thereof, upon their respective income or profits or any part thereof or upon any right or interest of any Lender under any Loan Document, except that they shall
not be required to pay or cause to be paid (a) any income or gross receipts tax generally applicable to Lenders or (b) any tax, assessment, charge or levy that is not yet past due, or is being contested in good faith by appropriate proceedings, so
long as with respect to any tax, assessment, charge or levy relating to the Property, Borrower has established and maintains adequate reserves for the payment of the same with Agent and by reason of such nonpayment and contest no material item or
portion of the properties of the Borrower, DERF, DERF2 or DERA is in jeopardy of being seized, levied upon or forfeited. Borrower shall provide Agent, at Borrower’s expense, a tax service contract in form and substance satisfactory to Agent.

  
 5.2    Preservation of Existence.    Preserve and maintain their
respective existences, licenses, rights, franchises and privileges in the jurisdiction of their formation and all authorizations, consents, approvals, orders, licenses, permits, or exemptions from, or registrations with, any Governmental Agency that
are necessary for the transaction of their respective businesses, and qualify and remain qualified to transact business in each jurisdiction in which such qualification is necessary in view of their respective businesses or the ownership or leasing
of their respective Properties. 
  
 5.3    Maintenance of Property; Compliance with
Agreements.    Maintain, preserve and protect the Property in good order and condition as a Class A Office Building, subject to ordinary wear and tear; not permit any waste of the Property; maintain, preserve and protect all
of their Intangible Assets in full force and effect; and comply at all times in all material respects with all material Contracts relating to the Property so as to prevent any loss or forfeiture thereunder; except that the failure to maintain,
preserve and protect a particular item of Personal Property that is not of significant value, either intrinsically or to the operations of the Borrower, the General Partners or DERA, taken as a whole, shall not constitute a violation of this
covenant. 

 
 31 

  
 5.4    Compliance With
Laws.    Comply with the requirements of all applicable Laws and orders of any Governmental Agency, noncompliance with which could materially adversely affect the business, operations or condition (financial or otherwise) of
any of them, taken as a whole, or the ability of the Borrower to perform its Obligations, except that no requirement then being contested in good faith by appropriate proceedings need be complied with so long as no interest of the Lenders would be
materially impaired thereby. 
  
 5.5    Inspection Rights.    At any
time during regular business hours, upon reasonable telephonic notice to the Borrower, and as often as requested, permit the Agent, or any employee or representative of the Agent, to examine, audit and make copies and abstracts from the records and
books of account of, and, subject to the rights of tenants, to visit and inspect the Property and to discuss the affairs, finances and accounts of the Borrower, DERF, DERF2 or DERA with any of their officers and key employees, and, upon request,
furnish promptly to the Agent true copies of all financial information maintained by the Borrower, DERF, DERF2 or DERA and such other information as the Agent may reasonably require from time to time. Notwithstanding the foregoing, it is understood
and agreed that the Borrower shall not be required to discuss with the Lenders the affairs, finances and accounts of any of the Limited Partners whether or not the Borrower possesses any such information and, with respect to financial information
concerning DERA, Borrower shall not be required to deliver financial information concerning DERA other than as it relates to the Borrower or is required pursuant to the terms of Article 7 of this Agreement. 
  
 5.6    Keeping of Records and Books of Account.    Keep adequate records and books of
account reflecting all financial transactions in conformity with GAAP, consistently applied, except as otherwise prescribed herein and in material conformity with all applicable requirements of any Governmental Agency having regulatory jurisdiction
over the Borrower, DERF, DERF2 or DERA. 
  
 5.7    Maintenance of
Insurance.    At its own expense, insure its properties and businesses against such losses, casualties and contingencies (including public liability and property damage), and in such amounts as is customary in the case of
Persons engaged in similar businesses as the Borrower, DERF, DERF2 or DERA. 
  
 5.8    Prohibition Against Distributions and Application of Gross Revenues to Other Expenditures of the Borrower. Borrower shall deposit all Gross Revenues in the Operating Account. The Borrower shall
apply all Gross Revenues from the Property first to the extent necessary to pay all expenses (whether Operating Expenses or capital expenditures) related to the operation or ownership of the Property and all expenses or other amounts due hereunder
or otherwise required to be expended to comply with the payment provisions of the Loan Documents. Distributions to partners of the Borrower may be made only from Cash Flow. So long as an Event of Default exists, no distributions of any kind may be
made by the Borrower to any of its partners. 
  
 5.9    Capital
Requirements.    If after the date of this Agreement any Lender shall have determined that: 

 
 32 

  
 (a) the applicability of any law, rule, regulation or guideline adopted or
arising out of the July 1988 report of the Basle Committee on Banking Regulations and Supervisory Practices entitled “International Convergence of Capital Measurement and Capital Standards,” 
  
 (b) the adoption, after the date of this Agreement, of any other law, rule, regulation or guideline regarding capital adequacy, including
but not limited to an adoption of any such law, rule, regulation or guideline resulting from the implementation of the January 2001 report of the Basle Committee on Banking Regulations and Supervisory Practices referred to as the New Basle Capital
Accord or Basle II, excluding the implementation of any measures resulting from the EU Consensus on the Germans system of Landesbanken dated 17th July 2001, 
  
 (c) any change in any of the foregoing or
in the interpretation or administration of any of the foregoing by any domestic or foreign governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or 
  
 (d) the compliance by the Lender, or any lending office of the Lender, as the case may be, or by any holding company of Lender, as the
case may be, with any request or directive regarding capital adequacy (whether or not having the force of Law) of any such authority, central bank or comparable agency, has, or would have, the effect of reducing the rate of return on Lender’s
capital, or on the capital of any Lender’s holding company, as the case may be, as a consequence of having made the Loan or any portion thereof, or of having any interest therein, or of Lender’s obligations with respect thereto, or under
this Agreement, the Note, the Deed of Trust or the other Loan Documents, to a level below that which Lender, or Lender’s holding company, as the case may be, could have achieved but for such adoption, change or compliance (taking into
consideration Lender’s policies or the policies of Lender’s holding company, as the case may be, with respect to capital adequacy) by an amount deemed by the Lender to be material, then, from time to time, the Borrower shall pay to the
Agent such additional amount or amounts as will compensate the affected Lender, or Lender’s holding company, as the case may be, for such reduction. Any amount or amounts payable by the Borrower to the Agent in accordance with the provisions of
this Section 5.9 shall be paid by the Borrower to the Agent within ten (10) days of receipt by the Borrower from the Agent of a statement setting forth the amount or amounts due and the basis for the determination from time to time of such amount or
amounts, which statement shall be conclusive and binding upon the Borrower absent manifest error. 
  
 For
clarification purposes, nothing in this clause 5.9 or in clause 2.11 of this Agreement is intended to include the implementation of any measures resulting from the EU Consensus on the state aid issues in connection with the Guarantees existing for
the German public financial institutions dated 17th July 2001 in the scope of said clauses. 

 
 5.10    Separateness Covenants.    Borrower shall unless Agent otherwise
consents in writing: 
  
 (a) Maintain its books and records for the Property separate from any other property;

 
 33 

  
 (b)    Maintain its bank accounts for the Property separate
from any other property; 
  
 (c)    Conduct its own businesses in its own name; 

 
 (d)    Maintain separate financial statements, showing its assets and liabilities separate and apart from
those of any other Person or entity and not to have its assets listed on the financial statement of any other entity; 
  
 (e)    File its tax returns separate from those of any other entity and not file a consolidated federal income tax return with any other entity; 
  
 (f)    Pay its own liabilities and expenses only out of its own funds; 
  
 (g)    As appropriate for the organizational structure of the Borrower, DERF, DERF2 and DERA, to observe all partnership, corporate and other
organizational formalities; 
  
 (h)    Maintain an arms length relationship with its affiliates
and enter into transactions with affiliates only on a commercially reasonable basis; 
  
 (i)    Pay the salaries of its own employees from its own funds; 
  
 (j)    Maintain a sufficient number of employees in light of its contemplated business operations; 
  
 (k)    Allocate fairly and reasonably any overhead expenses that are shared with an Affiliate, including paying for office space and services performed by any employee of an Affiliate; 

 
 (l)    Use separate stationery, invoices and checks bearing its own name; 
  
 (m)    Hold itself out as a separate entity; 
  
 (n)    Correct any known misunderstanding regarding its separate identity; 
  
 (o)    Not identify itself as a division of any other Person or entity; and 
  
 (p)    Maintain adequate capital in light of its contemplated business operations. 
  
 5.11    Trade Payables.    Pay all trade payables relating to the Property within sixty (60) days unless Agent otherwise
consents in writing. 
  
 5.12    Application of Insurance and Condemnation
Proceeds.    Insurance and condemnation proceeds shall be used in accordance with the terms and provisions of the Loan Documents, including, but not limited to, Sections 1.06 and 1.07 of the Deed of Trust. 

 
 5.13    Debt Service Coverage Ratio.    During the entire term of the Loan, the
Debt Service Coverage Ratio shall equal or exceed 1.25 to 1.00. Satisfaction of this covenant shall be confirmed quarterly in a Debt Service Coverage Ratio Certificate delivered by Borrower to 

 
 34 

 
Agent within ten (10) days of the end of each Fiscal Quarter. In the event this covenant is breached for any Fiscal Quarter. Borrower shall pay to Agent all Cash Flow, commencing on the first day
of the first month following such Fiscal Quarter. All Cash Flow delivered to Agent pursuant to this Section 5.13 shall, at the option of Borrower, be applied to reduce the Principal Balance or deposited in the Reserve Account and held by Agent as
additional Collateral. If the Debt Service Coverage Ratio shall subsequently equal or exceed 1.25 to 1.00 for two consecutive Fiscal Quarters, Borrower shall no longer be required to pay the Cash Flow to Agent and the Cash Flow deposited in the
Reserve Account shall be released to Borrower. Failure to maintain the required Debt Service Coverage Ratio shall not constitute a Default under this Agreement unless and until Borrower is required to pay all Cash Flow to Agent as set forth above
and Borrower fails to pay such Cash Flow to Agent. 
  
 5.14    Interest Rate Protection
Agreement.    Maintain in good standing at all times during the first four (4) years of the term of the Loan an Interest Rate Protection Agreement under which the “all-in” per annum interest rate shall not exceed
eight percent (8%) per annum. 
  
 5.15    Impound.    Upon demand of
Agent, which shall not be made prior to the occurrence of an Event of Default, Borrower shall, so long as such Event of Default is continuing, pay to Agent on the first day of each month, together with and in addition to the regular installments of
interest due under the Note, until the Obligations are paid in full, an amount equal to one twelfth (1/12) of the yearly taxes and assessments, insurance premiums, and other similar charges as estimated by Agent to be sufficient to enable Agent to
pay at least thirty (30) days before they become due, all taxes, assessments, insurance premiums and such other similar charges against the Property. Lenders shall not be obligated to pay interest on any such sums. Upon demand of Agent, Borrower
shall deliver to Agent such additional sums as are necessary to enable Agent to pay such taxes, assessments, insurance premiums and similar charges. If Borrower has paid to Agent any sums under this Section 5.15, such sums, less any amounts which
have been applied by Agent to the payment of such charges, shall be returned to Borrower upon demand of Borrower so long as no Event of Default has occurred and is continuing. 
  
 ARTICLE 6 
 NEGATIVE COVENANTS 
  
 So long as the Loan remains unpaid, or any other Obligation remains unpaid or unperformed, or any portion of the Loan remains outstanding,
the Borrower shall not: 
  
 6.1    Hypothecation or Disposition of the
Property.    Sell, assign, exchange, transfer, lease or otherwise dispose of, or contract to sell, assign, exchange, transfer, lease or otherwise dispose of the Property, or create, incur, assume or suffer to exist any Lien
of any nature upon or with respect to the Property, except: 
  
 (a)    As expressly
permitted by the terms of the Loan Documents; 
  
 (b)    Liens securing taxes, assessments or
governmental charges or levies or the claims or demands of materialmen, mechanics, carriers, warehousemen, landlords and other like Persons not yet delinquent and Liens of the foregoing nature, the validity of which is being 

 
 35 

 
contested in good faith by the Borrower in appropriate proceedings after posting such security with Agent or providing such other assurances as may be satisfactory to the Agent; 

 
 (c)    Easements, rights of way, restrictions and other similar charges or encumbrances on the Property
that do not materially interfere with the use, or materially detract from the value, of the Property; 
  
 (d)    Liens existing or arising by virtue of the leasing or rental of the Property to the extent leases and rentals are permitted or would be permitted under the Deed of Trust; 
  
 (e)    Liens in favor of the Lenders under this Agreement and the other Loan Documents; and 
  
 (f)    A Lien in favor of Swap Party, which Lien shall be subject and junior to the Lien of the Deed of Trust and,
provided further, if LB Kiel or an Affiliate of LB Kiel is not the Swap Party then, as a condition to the grant of such Lien by Borrower, Agent and Swap Party shall have entered into an intercreditor agreement on terms and conditions satisfactory to
Agent in its sole and absolute discretion. 
  
 6.2    Mergers.    Merge, consolidate or amalgamate with or into any Person. 
  
 6.3    ERISA. 
  
 (a)    At any time, maintain, or be or become obligated to contribute on behalf of its employees to, any Plan, other than those Plans disclosed in Schedule 4.10. 
  
 (b)    At any time, permit any Plan to: 
  
 (1)    engage in any “prohibited transaction”, as such term is defined in Section 4975 of the Internal Revenue Code of 1954, as amended;

  
 (2)    incur any material “accumulated funding deficiency”, as that term is
defined in Section 302 of ERISA; or 
  
 (3)    terminate in a manner which could result in
liability of the Borrower to the Plan or to the PBGC or the imposition of a Lien on any of its property pursuant to Section 4068 of ERISA. 
  
 (c)    At any time, assume any obligation to contribute to any Multiemployer Plan, nor shall the Borrower acquire any Person or assets of any Person which has, or has had at any time from and after
January 2, 1974, an obligation to contribute to any Multiemployer Plan. 
  
 (d)    Fail
immediately to notify the Agent of the occurrence of any “reportable event” (as defined in Section 4043 of ERISA) or of any “prohibited transaction” (as defined in Section 4975 of the Internal Revenue Code of 1984, as amended)
with respect to any Plan or any trust created thereunder. Upon request by the Agent, the Borrower shall promptly furnish to the Agent copies of any reports or other documents filed by the Borrower with the United States Secretary of Labor, the PBGC
and/or the Internal Revenue Service, with respect to any Plan. 

 
 36 

  
 (e)    At any time, permit any Plan to fail to comply with
ERISA or other applicable Law in any material respect. 
  
 6.4    Change in Nature of
Business.    Make any material change in the nature of the business of the Borrower, as conducted and presently proposed to be conducted. 
  
 6.5    Change in Fiscal Year.    Change its Fiscal Year, or the fiscal months thereof without the written consent of Agent. 
  
 6.6    Limitation on Ownership by Benefit Plan Investors.    Cause or allow a
“significant” ownership of any class of the Borrower’s outstanding equities by “benefit plan investors” as those terms are defined in DOL Reg. 2510.3-101(f). 
  
 6.7    Distributions.    Make any Distributions to the General Partners or the Limited Partners at any time when an Event of
Default exists under this Agreement. 
  
 6.8    Additional
Indebtedness.    During the term of the Loan, incur any Indebtedness with respect to the Property other than Indebtedness incurred in connection with the Loan (including the Interest Rate Protection Agreement) and trade
payables incurred in the ordinary course of business. 
  
 6.9    Management
Fees.    Permit any contract relating to the management of the Property to provide for a management fee in excess of 1.75% of the Gross Revenues derived from the Property. 
  

6.10    Total Indebtedness.    Permit the total Indebtedness of the Borrower and its Subsidiaries at the time of any
borrowing to be greater than sixty percent (60%) of Total Assets. 
  
 ARTICLE 7 
 INFORMATION AND REPORTING REQUIREMENTS 
  
 7.1    Financial and Business Information.    So long as the Loan remains unpaid, or any other Obligation remains unpaid or unperformed, the Borrower shall, unless the Lenders otherwise
consents in writing, deliver to the Agent, at the Borrower’s sole expense: 
  
 (a)    As
soon as practicable, and in any event within one hundred twenty-five (125) days after the close of each Fiscal Year, (i) Borrower’s Annual Report in the same form as previously delivered to Agent, (ii) Annual Financial Statements in the same
form as previously delivered to Agent and (iii) the Financial Statements of the General Partners and DERA as at the end of their last fiscal year. Such balance sheet and statements of the Borrower shall be prepared on a current value basis or
historical basis in accordance with GAAP, consistently applied, and shall be accompanied by a report and opinion of an independent public accountant of recognized standing selected by the Borrower and reasonably satisfactory to the Agent, which
report and opinion shall be prepared in accordance with GAAP, and shall be subject only to the exceptions described in Section 1.3 and such other qualifications and exceptions as are acceptable to the Agent. The Financial Statements shall fairly
present the financial condition, results of operations and changes in financial position of the General Partners and DERA as at such date and for such 

 
 37 

 
period, in conformity with GAAP, consistently applied, as modified pursuant to Section 1.3 hereof. 
  
 (b)    As soon as practicable, and in any event within fifty (50) days after the end of each of the first three Fiscal Quarters, (i) Borrower’s Quarterly Report in the same
form as previously delivered to Agent and (ii) Borrower’s Quarterly Financial Statements in the same form as previously delivered to Agent. The preceding financial statements shall be certified by a Responsible Official of the Borrower as
fairly presenting the financial condition, results of operations and changes in financial position of the Borrower in accordance with GAAP, consistently applied, as at such date and for such periods, subject only to normal year-end audit adjustments
and the exceptions described in Section 1.3. 
  
 (c)    As soon as practicable, and in any event
within fifty (50) days after the end of each Fiscal Quarter, a separate statement of profit and loss describing the operation of the Property during such Fiscal Quarter, together with all supporting schedules certified by a Responsible Official.
Such quarterly statements shall contain all information reasonably required by the Agent. Such statements, and all supporting schedules, shall set forth the profit and loss for the Building for the applicable Fiscal Quarter on a cash basis except
that rental revenue shall be shown on an “as-billed”, if collectible, basis and real property taxes and casualty and public liability insurance costs will be shown on an accrual basis. 
  

(d)    As soon as practicable, and in any event within ninety (90) days after the close of each Fiscal Year a draft operating and capital budget
for the Property for the following Fiscal Year and, within one hundred twenty-five (125) days after the close of each Fiscal Year a final operating and capital budget for the Property for the following Fiscal Year, certified by a Responsible
Official. In the event of material discrepancies in the operating budget for the Property from one Fiscal Year to another, Agent shall have the right of approval over said operating budget, which approval shall not be unreasonably withheld or
denied. In the event capital improvements are contemplated which do not constitute renovations or normal replacement of equipment and the costs of such capital improvements exceeds $100,000, Agent shall have the right of approval over such capital
improvements, which approval will not be unreasonably withheld or denied. 
  
 (e)    Within
fifty (50) days after the end of each Fiscal Quarter, a current rent roll, leasing status report and an accounts receivable aging schedule concerning the Property, certified by a Responsible Official. 
  
 (f)    Within fifty (50) days after the end of each of the first three Fiscal Quarters of the Borrower, and within
one hundred twenty (120) days after the end of each Fiscal Year, written notification certified by a Responsible Official of the Borrower in the form of Schedule 7.1(f) attached hereto that the Borrower is in compliance with each and every material
covenant of the Borrower set forth in this Agreement. 
  
 (g)    Within one hundred (120) days
after the close of each Fiscal Year, cash flow projections for the next Fiscal Year on a quarterly basis for the combined operations of the Borrower, certified by a Responsible Official. 

 
 38 

  
 (h)    Promptly after request by the Agent, copies of any
detailed audit reports submitted to the Borrower by independent accountants in connection with the accounts or books of the Borrower, or any audit of them. 
  
 (i)    Immediately upon becoming aware of the existence of any condition or event which constitutes a Default, a written notice specifying the nature and period of existence thereof
and what action the Borrower is taking or proposes to take with respect thereto. 
  
 (j)    Promptly upon becoming aware that any Person(s) asserts claim(s) (individually or in the aggregate) against the Borrower, which are not fully insured, relate to obligations not set forth in the annual
budget for the Borrower and are in excess of $100,000, a written notice specifying the nature of the claim(s) and what actions the Borrower is taking or proposes to take with respect thereto. 
  

(k)    Promptly upon request of Agent, copies of the bank statements covering the Operating Account. 
  
 (l)    Such other data and information as from time to time may be reasonably requested by the Agent, including, but
not limited, cash statements, monthly operating statements and a statement setting forth the then unfunded Capital Commitments of the General Partners and the Limited Partners in each case certified by a Responsible Official. 

 
 The Agent and the Borrower hereby agree that the Financial Statements previously delivered to the Agent by the Borrower are in
a form substantially in compliance with the requirements of paragraphs (a) through (g) of this Section 7.1 and all subsequently delivered Financial Statements which are in similar form shall as to form be deemed to satisfy the terms and conditions
of said paragraphs (a) through (g) of this Section 7.1. 
  
 7.2    Revisions or Updates to
Schedules.    Should any of the information or disclosures provided on any of the Schedules originally attached hereto become outdated or incorrect in any material respect, the Borrower shall promptly provide to the Agent
such revisions or updates to such Schedule(s) as may be necessary or appropriate to update or correct such Schedule(s), provided, however, that no such revisions or updates to any Schedule(s) shall be deemed to have amended, modified
or superseded such Schedule(s) as originally attached hereto, or to have cured any breach of warranty or representation resulting from the inaccuracy or incompleteness of any such Schedule(s), unless and until the Agent shall have accepted in
writing such revisions or updates to such Schedule(s); provided, further however, that the Borrower shall provide updates and revisions to the Schedules at least every three (3) months as of the end of each Fiscal Quarter, which
updates and revisions shall be delivered to the Agent within thirty (30) days after the end of each Fiscal Quarter. Notwithstanding the foregoing, (a) with respect to the updated Schedules required to be delivered to the Agent by the Borrower
hereunder following the Borrower’s fourth Fiscal Quarter, the Borrower shall have until sixty (60) (rather than thirty [30]) days after the Borrower’s fourth Fiscal Quarter to deliver the same to the Agent and (b) the Borrower shall not be
deemed in default of its obligations hereunder to provide updates and revisions to the Schedules every three (3) months as of the end of each Fiscal Quarter, within the times specified above, unless and until the Borrower has received written
notification from the 

 
 39 

 
Agent that the Agent has not received the required updated Schedule and such updated Schedule is not provided to the Agent within ten (10) Business Days of receipt of said written notice.

  
 ARTICLE 8 
 EVENTS OF
DEFAULT AND REMEDIES 
 UPON EVENT OF DEFAULT 
  
 8.1    Events of Default.    The existence or occurrence of any one or more of the following events, whatever the reason therefor, shall constitute an
Event of Default: 
  
 (a)    The Borrower fails to pay all or any portion of any installment of
principal or interest due under the Note, or to pay any fee or other amount due to the Lenders under any Loan Document, within five (5) calendar days after the due date therefor; provided, however, failure to pay all or any portion of
principal or interest or any fee or other amount due to the Lenders at the Maturity Date under the Note or under any other Loan Document shall immediately constitute an Event of Default without any grace period; or 
  
 (b)    The Borrower fails to perform or observe any obligation, representation, covenant or agreement contained in
Sections 1.02, 1.03, 1.06, 1.07(d), 1.08(a) or 1.13 of the Deed of Trust and the continuation of the Default for a period of ten (10) days after written notice thereof from the Agent to the Borrower; provided, however, with respect to
any Default occurring under Sections 1.02 or 1.03 of the Deed of Trust which is capable of cure and is not materially adverse to the interests of the Lenders and such Default is not reasonably susceptible of cure within said ten (10) day period,
such cure period shall be extended so long as the Borrower has commenced such cure within said ten (10) day period and thereafter diligently prosecutes such cure to completion and such cure in any event is effected within thirty (30) days; or

  
 (c)    The Borrower fails to perform or observe any other term, warranty, covenant or
agreement contained in any Loan Document on its part to be performed or observed, other than the Defaults described in Section 8.1(b) above, within thirty (30) days after written notice from the Agent of such Default; provided,
however, if such Default is capable of cure but is not reasonably susceptible of cure within said thirty (30) day period, such cure period shall be extended so long as the Borrower has commenced such cure within said thirty (30) day period
and thereafter diligently prosecutes such cure to completion and such cure in any event is effected within ninety (90) days after written notice from the Agent of such Default; or 
  
 (d)    A breach or default shall occur with respect to any Indebtedness of the Borrower in excess of $100,000, and such breach or default would have a
Material Adverse Effect; or 
  
 (e)    Any material representation in any Loan Document or in
any certificate, agreement, instrument or other document made or delivered by any Party pursuant to or in connection with any Loan Document proves to have been incorrect when made in any respect that is materially adverse to the interests of the
Lenders and such misrepresentation was knowingly made or, if not knowingly made, such representation remains incorrect thirty (30) days after written notice from the Agent of such Default; provided, however, if such Default is

 
 40 

 
capable of cure but is not reasonable susceptible of cure within said thirty (30) day period, such cure period shall be extended so long as the defaulting Party has commenced such cure within
said thirty (30) day period and thereafter diligently prosecutes such cure to completion and such cure in any event is effected within ninety (90) days after written notice from the Agent of such Default; or 
  
 (f)    A final judgment against the Borrower, the General Partners or DERA is entered for the payment of money in
excess of $500,000 and such judgment remains unsatisfied without procurement of a stay of execution within sixty (60) calendar days after the date of entry of judgment; or 
  
 (g)    The Borrower, the General Partners or DERA are the subject of an order for relief in a bankruptcy case, or is unable or admits in writing its
inability to pay its debts as they mature, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or
for all or any part of the Property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of that Person and the appointment continues undischarged or unstayed
for ninety (90) calendar days; or institutes or consents to any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution, custodianship, conservatorship, liquidation, rehabilitation or similar case or proceedings
relating to it or to all or any part of its property under the Laws of any jurisdiction; or any similar case or proceeding is instituted without the consent of that Person and continues undismissed or unstayed for ninety (90) calendar days; or any
judgment, writ, warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within ninety (90) calendar days after its
issue or levy; or 
  
 (h)    Except as otherwise expressly permitted by any Loan Document
or agreed to by the Lenders, at any time after the execution and delivery of any Collateral Document and for any reason other than satisfaction in full of all Obligations, the Lien intended to be created by said Collateral Document ceases or fails
to constitute a valid, perfected and subsisting Lien on the Collateral purported to be covered thereby with a Lien priority as set forth in such Collateral Document and such condition continues to exist ten (10) days after written notice from the
Agent of such Default; or 
  
 (i)    The Borrower, the General Partners or DERA are dissolved or
liquidated or all or substantially all of the assets of the Borrower, the General Partners or DERA are sold or otherwise transferred in violation of the provisions of this Agreement without the written consent of the Lenders; or 

 
 (j)    A Change in Control occurs without the prior written consent of the Lenders unless such Change in
Control relates to the death, disability, retirement or resignation of a Person and such Person is replaced by a Person who has been approved by the Lenders, which approval shall not be unreasonably denied (any such Person shall be of good
character, financially stable and possess business experience reasonably equivalent to the experience of the Person who has died, become disabled, retired or resigned); or 

 
 41 

  
 (k)    A tax, other than a state or federal income tax, is
imposed on or payable by the Lenders by reason of their ownership of the Note or the Deed of Trust, and the Borrower has not paid said tax prior to the time when payment of said tax would be delinquent, or it would be illegal for the Borrower to pay
said tax; provided, however, in the event it would be illegal for the Borrower to pay said tax, no Event of Default shall be deemed to have occurred pursuant to this Section 8.1(k) unless the Agent has demanded repayment of the Loan
and Borrower has failed to discharge all of the Obligations within one hundred twenty (120) days of receipt by the Borrower of a notice from the Agent that (i) such a tax has been imposed and (ii) the Lenders demand repayment of the Loan; or

  
 (l)    A General Partner is in violation of the terms of the Partnership Agreement of the
Borrower; or 
  
 (m)    DERA is in violation of the terms of the limited partnership agreement
of any General Partner; or 
  
 (n)    Borrower is in default under the terms of the Interest
Rate Protection Agreement or fails to maintain an Interest Rate Protection Agreement in accordance with the terms of this Agreement. 
  
 8.2    Remedies Upon Event of Default.    Without limiting any other rights or remedies of the Lenders provided for elsewhere in this Agreement, or the Loan Documents, or by
applicable Law, or in equity, or otherwise: 
  
 (a)    upon the occurrence of any Event of
Default other than an Event of Default described in Sections 8.1(g) or 8.1(i), the Agent may declare all or any part of the Principal Balance, all interest accrued and unpaid thereon and all other amounts payable under the Loan Documents to be
forthwith due and payable, whereupon the same shall become and be forthwith due and payable, without protest, presentment, notice of dishonor, demand or further notice of any kind, all of which are expressly waived by the Borrower; 

 
 (b)    upon the occurrence of any Event of Default described in Sections 8.1(g) or 8.1(i), the Principal
Balance, all interest accrued and unpaid thereon and all other amounts payable under the Loan Documents shall forthwith be due and payable, without protest, presentment, notice of dishonor, demand or further notice of any kind, all of which are
expressly waived by the Borrower; 
  
 (c)    upon the occurrence of any Event of Default, the
Agent, without notice to or demand upon the Borrower, which notices and demands are expressly waived by the Borrower, may proceed to protect, exercise and enforce the rights and remedies of the Lenders under the Loan Documents against the Borrower
and may exercise such other rights and remedies as are provided by Law or equity; 
  
 (d)    the
order and manner in which the Lenders’ rights and remedies are to be exercised shall be determined by the Lenders in their sole discretion; and 
  
 (e)    regardless of how the Lenders may treat payments for the purpose of their own accounting, for the purpose of computing the Borrower’s Obligations hereunder or under

 
 42 

 
the Note, payments received by the Agent, whether through the realization of the security interests in the Collateral or otherwise, shall be applied first, to the costs and expenses
(including attorneys’ fees and disbursements) of the Lenders, second, to the payment of accrued and unpaid interest on the Note to and including the date of such application, third, to the payment of all other amounts (including
fees but excluding the Principal Balance) then owing to the Lenders under the Loan Documents, and fourth, to the payment of the Principal Balance. Except with respect to Events of Default which relate solely to the non-payment of money, or as
mandated by applicable Law, no application of payments shall cure any Event of Default, or prevent acceleration, or continued acceleration, of amounts payable under the Loan Documents, or prevent the exercise, or continued exercise, of rights or
remedies of the Lenders hereunder or thereunder or at Law or in equity. 
  
 ARTICLE 9 
 MISCELLANEOUS 
  
 9.1    Cumulative Remedies; No Waiver.    The rights, powers, privileges and remedies of the Lenders provided herein or in the Note or the other Loan Documents are cumulative and not
exclusive of any right, power, privilege or remedy provided by Law or equity. No failure or delay on the part of the Agent in exercising any right, power, privilege or remedy may be, or may be deemed to be, a waiver thereof; nor may any single or
partial exercise of any right, power, privilege or remedy preclude any other or further exercise of the same or any other right, power, privilege or remedy. The terms and conditions of Article 3 hereof are inserted for the sole benefit of the
Lenders and the Lenders may waive them in whole or in part, with or without terms or conditions, and without prejudicing the Agent’s right to assert them in whole or in part at any future time. 
  
 9.2    Amendments; Consents.    No amendment, modification, supplement, extension,
termination or waiver of any provision of this Agreement or any other Loan Document, no approval or consent thereunder, and no consent to any departure by the Borrower or any other Party therefrom, may in any event be effective unless in writing
signed by the Agent (and, in the case of amendments, modifications or supplements of or to any Loan Document imposing obligations on the Borrower or waiving or releasing rights of the Borrower, unless approved in writing by the Borrower), and then
only in the specific instance and for the specific purpose given. 
  
 9.3    Costs, Expenses
and Taxes.    The Borrower shall pay on demand the reasonable costs and expenses of the Agent in connection with the negotiation, preparation, amendment, execution and delivery of the Loan Documents and enforcement or
attempted enforcement of the Loan Documents, including, without limitation, filing fees, recording fees, search fees, title insurance fees, appraisal fees, environmental assessment fees, search fees and other out-of-pocket expenses and the
reasonable fees and out-of-pocket expenses of its consultants and of any legal counsel (including internal counsel at reasonable hourly rates but only with respect to enforcement or attempted enforcement of the Loan Documents), independent public
accountants and other outside experts retained by the Agent, and including, without limitation, any costs, expenses or fees incurred or suffered by the Agent in connection with or during the course of any bankruptcy or insolvency proceedings
of the Borrower, the General Partners or DERA. The Borrower shall pay any and all documentary and other taxes (other than income or gross receipts taxes generally 

 
 43 

 
applicable to secured lenders) and all costs, expenses, fees and charges payable or determined to be payable in connection with this Agreement, any other Loan Document or any other instrument or
writing to be delivered hereunder or thereunder, or in connection with any transaction pursuant hereto or thereto, and shall reimburse, hold harmless and indemnify the Lenders from and against any and all loss, liability or legal or other expense
with respect to or resulting from any delay in paying or failure to pay any such tax, cost, expense, fee or charge that the Lenders may suffer or incur by reason of the failure of any Party to perform any of its Obligations. In the event of
litigation relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and disbursements and court costs. Any amount payable under this Section 9.3 shall bear interest from the eleventh day
following the date of demand for payment at the Default Rate unless the Borrower in good faith is disputing its obligation to pay such amount and such good faith dispute remains unresolved or at the time such demand for payment is made the Agent
fails to notify the Borrower that a failure to honor the demand within ten (10) days will result in the imposition of the charge referred to in this Section 9.3 and referencing this Section 9.3. Nothing contained in this Section 9.3 shall be deemed
to obligate the Borrower to pay any costs or expenses incurred by the Lenders which relate to the transfer and/or sale of interests in the Loan other than syndication market tour expenses which shall be paid by Borrower but which shall not include
legal, travel, lodging or any other syndication costs. 
  
 9.4    Nature of Lenders’
Obligations.    Nothing contained in this Agreement or any other Loan Document and no action taken by the Lenders pursuant hereto or thereto may, or may be deemed to, make the Lenders a partner of a partnership, an associate
of an association, or a joint venturer of a joint venture or other entity, either with the Borrower or any Affiliate of the Borrower and, at all times, the relationship between the Lenders and the Borrower shall be that of a lender and a borrower,
respectively. The obligations of any Lender hereunder shall be several and not joint obligations. 
  
 9.5    Reliance Upon Representations and Warranties.    All representations and warranties contained herein or in any other Loan Document, or in any certificate or other writing
delivered by or on behalf of any one or more of the Parties to any Loan Document have been or will be relied upon by the Lenders, notwithstanding any investigation made by the Lenders or on its behalf. 
  
 9.6    Notices.    Except as otherwise expressly provided in the Loan Documents: (a)
all notices, requests, demands, directions and other communications provided for hereunder or under any other Loan Document must be in writing and must be mailed, certified or registered mail, return receipt requested, telegraphed, telecopied,
delivered or sent by telex or cable or by Federal Express or other similar overnight mail service, to the appropriate party (and to the Persons so designated to receive copies thereof) at the addresses set forth on the signature pages of this
Agreement or other applicable Loan Document or, as to any party to any Loan Document, to any other Persons and at any other addresses as may be designated by it in a written notice sent to all other parties to such Loan Document in accordance with
this Section 9.6; and (b) any notice, request, demand, direction or other communication given by telegram, telecopier, telex or cable or by Federal Express or other similar overnight mail service must be confirmed within 48 hours by letter mailed or
delivered to the appropriate party as set forth above. Except as otherwise expressly provided in any Loan Document, if any notice, request, demand, direction or 

 
 44 

 
other communication required or permitted by any Loan Document is given by mail it will be effective on the earlier of receipt or the third Business Day after deposit in the United States mail
with certified or registered postage prepaid; if given by telegraph or cable, when delivered to the telegraph company with charges prepaid; if given by telex or telecopier, when sent; or if given by personal delivery or by Federal Express or other
similar overnight mail service, when delivered. 
  
 9.7    Execution of Loan Documents;
Counterparts.    This Agreement and any other Loan Document may be executed in any number of counterparts and any party hereto or thereto may execute any counterpart, each of which when executed and delivered will be deemed
to be an original and all of which counterparts of this Agreement or any other Loan Document, as the case may be, when taken together will be deemed to be but one and the same instrument. The execution of this Agreement or any other Loan Document by
any party hereto or thereto will not become effective until counterparts hereof or thereof, as the case may be, have been executed by all the parties hereto or thereto. 
  
 9.8    Indemnity by the Borrower.    The Borrower agrees to indemnify, defend, save and hold harmless the Lenders, their
directors, officers, agents, attorneys and employees and their respective successors and assigns (collectively, the “Indemnitees”) from and against: (a) any and all claims, demands, actions or causes of action that are asserted
against any Indemnitee by any Person (other than an Indemnitee) if (i) the claim, demand, action or cause of action directly or indirectly relates to a claim, demand, action or cause of action that such Person has or asserts against the Borrower,
any Affiliate of the Borrower or any officer, director or partner of the Borrower and (ii) arises out of or relates to the relationship between the Borrower and the Lenders under any of the Loan Documents or the transactions contemplated thereby;
and (b) any and all liabilities, losses, costs or expenses (including attorneys’ fees and disbursements and other professional services) that any Indemnitee suffers or incurs as a result of the assertion of any foregoing claim, demand,
action or cause of action; provided that no Indemnitee shall be entitled to indemnification for any loss caused by its own gross negligence or willful misconduct. Each Indemnitee is authorized to employ counsel of its own choosing in
enforcing its rights hereunder and in defending against any claim, demand, action or cause of action covered by this Section 9.8; provided that each Indemnitee shall endeavor, in connection with any matter covered by this Section 9.8 which
also involves other Indemnitees, to use reasonable efforts to avoid unnecessary duplication of effort by counsel for all Indemnitees and shall endeavor further to engage one legal counsel or law firm to represent their collective interests so long
as their interests do not conflict and there is no other reasonable and substantial basis for using separate counsel. Any obligation or liability of the Borrower to any Indemnitee under this Section 9.8 shall be and hereby is covered and secured by
the Loan Documents and the Collateral, and shall survive the expiration or termination of this Agreement and the repayment of the Loan and the payment and performance of all other Obligations owed to the Lenders. 
  
 9.9    Nonliability of the Lenders.    The Borrower acknowledges and agrees that:

  
 (a)    Any inspections of the Property made by or through the Agent are for purposes of
administration of the Loan only and the Borrower is not entitled to rely upon the same; 

 
 45 

  
 (b)    By accepting or approving anything required to be
observed, performed, fulfilled or given to the Agent pursuant to the Loan Documents, including any certificate, financial statement, insurance policy or other document, the Lenders shall not be deemed to have warranted or represented the
sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or condition thereof, and such acceptance or approval thereof shall not constitute a warranty or representation to anyone with respect thereto by the
Lenders; 
  
 (c)    The relationship between the Borrower and the Lenders is, and shall at all
times remain, solely that of a borrower and lender; the Lenders shall not under any circumstance be construed to be a partner or joint venturer of the Borrower or its Affiliates; the Lenders shall not under any circumstance be deemed to be in a
relationship of confidence or trust or a fiduciary relationship with the Borrower or its Affiliates, or to owe any fiduciary duty to the Borrower or its Affiliates; the Lenders do not undertake or assume any responsibility or duty to the Borrower or
its Affiliates to select, review, inspect, supervise, pass judgment upon or inform the Borrower or its Affiliates of any matter in connection with the Property, any Collateral held by the Lenders or the operations of the Borrower or its Affiliates;
the Borrower and its Affiliates shall rely entirely upon their own judgment with respect to such matters; and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by the Lenders in connection with
such matters is solely for the protection of the Lenders and neither the Borrower nor any other Person is entitled to rely thereon; and 
  
 (d)    The Lenders shall not be responsible or liable to any Person for any loss, damage, liability or claim of any kind relating to injury or death to Persons or damage to property caused by the actions,
inaction or negligence of the Borrower and/or its Affiliates and the Borrower hereby indemnifies and holds the Lenders and their assignees harmless from any such loss, damage, liability or claim. 
  

9.10    No Third Parties Benefitted.    This Agreement is made for the purpose of defining and setting forth certain
obligations, rights and duties of the Borrower and the Lenders in connection with the Loan, and is made for the sole protection of the Borrower, the Lenders, and the Lenders’ successors and assigns. Except as provided in Section 9.8 and
9.9 and in this Section 9.10, no other Person shall have any rights of any nature hereunder or by reason hereof. 
  
 9.11    Further Assurances.    The Borrower shall, at its expense and without expense to the Lenders do, execute and deliver such further acts and documents as the Agent from time to
time reasonably requires for the assuring and confirming unto the Lenders of the rights hereby created or intended now or hereafter so to be, or for carrying out the intention of facilitating the performance of the terms of any Loan Document, or for
assuring the validity, perfection, priority or enforceability of any Lien under any Loan Document. 
  
 9.12    Integration.    This Agreement and the Exhibits and Schedules hereto, together with the other Loan Documents, comprise the complete and integrated agreement of the parties on the
subject matter hereof and thereof and supersede all prior or contemporaneous agreements, written or oral, on the subject matter hereof or thereof. In the event of any conflict between the provisions of this Agreement and those of any other Loan
Document, the provisions of this Agreement shall control and govern. Each Loan Document was drafted with the joint 

 
 46 

 
participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof. 
  
 9.13    Modifications and Amendments.    This Agreement may not be modified or amended
orally or waived or modified in any manner except as expressly set forth herein. All modifications or amendments shall be by an agreement in writing signed by the party against whom enforcement is sought. 
  
 9.14    Effectiveness.    This Agreement shall become effective on the date on which all of
the parties hereto shall have signed a counterpart hereof and shall have delivered the same to the other. 
  
 9.15    Governing Law.    Except to the extent otherwise provided therein, each Loan Document shall be governed by, and construed and enforced in accordance with, the local Laws
of the State of California. 
  
 9.16    Severability of
Provisions.    Any provision in any Loan Document that is held to be inoperative, unenforceable or invalid as to any party or in any jurisdiction shall, as to that party or jurisdiction, be inoperative, unenforceable or
invalid without affecting the remaining provisions or the operation, enforceability or validity of that provision as to any other party or in any other jurisdiction, and to this end the provisions of all the Loan Documents are declared to be
severable. 
  
 9.17    Headings.    Article and Section headings in
this Agreement and the other Loan Documents are included for convenience of reference only and are not part of this Agreement or the other Loan Documents for any other purpose. 
  
 9.18    Time of the Essence.    Time is of the essence of this Agreement and the other Loan Documents. 

 
 9.19    JURY TRIAL WAIVER, ETC.    THE BORROWER HEREBY EXPRESSLY AND
UNCONDITIONALLY WAIVES, IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING BROUGHT BY ANY LENDER IN CONNECTION WITH THE LOAN AND/OR THE LOAN DOCUMENTS, ANY AND EVERY RIGHT IT MAY HAVE TO (i) INTERPOSE ANY COUNTERCLAIM THEREIN, EXCEPT TO THE EXTENT
THAT SAID COUNTERCLAIM MUST BE ASSERTED PURSUANT TO SECTION 426.30 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE OR OTHERWISE BE BARRED FROM BEING ASSERTED IN ANY OTHER ACTION AND (ii) HAVE THE SAME CONSOLIDATED WITH ANY OTHER OR SEPARATE SUIT, ACTION
OR PROCEEDING. NOTHING HEREIN CONTAINED SHALL PREVENT OR PROHIBIT THE BORROWER FROM INSTITUTING OR MAINTAINING A SEPARATE ACTION AGAINST ANY LENDER WITH RESPECT TO ANY ASSERTED CLAIM NOR SHALL IT PREVENT BORROWER FROM INTERPOSING A DEFENSE OR
SEEKING AN INJUNCTION TO ENJOIN THE EXERCISE OF REMEDIAL REMEDIES IF THE BASIS FOR SUCH INJUNCTION IS A GOOD FAITH CLAIM THAT AN EVENT OF DEFAULT HAS NOT OCCURRED OR DOES NOT EXIST. THE BORROWER AND THE LENDERS HEREBY EXPRESSLY AND UNCONDITIONALLY
WAIVE, IN CONNECTION WITH ANY SUIT, 

 
 47 

 
ACTION OR PROCEEDING BETWEEN THE BORROWER AND ANY LENDER IN CONNECTION WITH THE LOAN AND/OR THE LOAN DOCUMENTS, ANY AND EVERY RIGHT THEY MAY HAVE TO A TRIAL BY JURY. 
  
 9.20    Non-Recourse.    Section 5.19 of the Deed of Trust contains provisions under which
the liabilities of the Borrower under the Loan will, under certain circumstances, be non-recourse and enforceable only against the Collateral. The terms and provisions of Section 5.19 of the Deed of Trust are incorporated herein by reference and
shall be binding upon the Lenders with the same force and effect as if they were repeated herein. 
  
 9.21    Substitution of DERA.    Notwithstanding anything to the contrary contained herein or in the other Loan Documents, subject to receipt by Borrower of the prior written consent of
the Lenders, which consent shall not be unreasonably withheld or delayed, the General Partners shall have the right to substitute a new general partner in place of DERA provided such substitution does not violate any term or provision contained in
the partnership agreement of the General Partners and provided further that such substitute general partner shall be Controlled by at least three of the following: Dan Emmett, Jordan Kaplan, Chris Anderson and Ken Panzer; provided,
however, if the substitute general partner is Controlled by less than three but not less than one of the foregoing Persons, the substitute general partner shall be approved if the Persons who Control the substitute general partner possess the
qualifications and market experience substantially equivalent to the qualifications and market experience of the foregoing named Persons. 
  
 9.22    Property Management.    The Borrower represents to the Lenders that the Property is being managed by the Management Company pursuant to a Management Agreement. The
Borrower shall give the Agent prompt written notice of the occurrence of a default under any Management Agreement then in effect. In no event shall the Management Company be removed or replaced or the terms of any Management Agreement be modified or
amended without the prior written consent of the Lenders. Notwithstanding the foregoing, the Management Company may be replaced at the election of the Limited Partners in accordance with the terms of the partnership agreement of the General
Partners, provided such Person replacing the Management Company has been approved by the Lenders, which approval shall not be unreasonably denied or delayed. After an Event of Default or a default under any Management Agreement then in effect, which
default is not cured within any applicable grace or cure period, the Lenders shall have the right to terminate or to direct the Borrower to terminate, the Management Agreement upon thirty (30) days’ notice and to retain, or to direct the
Borrower to retain, a new management agent approved by the Lenders. 
  
 9.23    Invoices.    The Agent shall submit to the Borrower on or before the due date an invoice covering any payment required to be made by the Borrower under this Agreement or under
any of the other Loan Documents. 
  
 9.24    Standard of
Reasonableness.    Wherever in this Agreement or the other Loan Documents the consent or approval of the Borrower or the Lenders is required, such consent and/or approval shall not be unreasonably withheld, denied or delayed
except in such cases where this Agreement and/or the other Loan Documents expressly provide that such consent and/or approval may be given in such Person’s sole and absolute discretion. 

 
 48 

  
 9.25    Confidential Information; Press
Releases.    Lenders agree to keep confidential any non-public information that it may receive from Borrower or otherwise discover with respect to Borrower or Borrower’s business pursuant to the Loan Documents or any
investigation by Lenders thereunder (collectively “Confidential Information”), and not to use Confidential Information in order to compete with Borrower in Borrower’s markets and main line of business. The foregoing shall not limit
disclosures: (a) specifically and previously authorized in writing by Borrower; (b) to any actual or prospective assignee or participant of Lenders so long as such actual or prospective assignee or participant has agreed in writing to keep such
Confidential Information confidential in accordance with, and not to use such Confidential Information in violation of, the terms of this Section 9.25; (c) to legal counsel, accountants, auditors, environmental consultants, title insurance
representatives and other professional advisors to each such Person so long as any such Person shall be informed in writing of the confidential nature of such Confidential Information and shall be directed to treat such Confidential Information
confidentially and not to use such Confidential Information in violation of this Section 9.25; (d) to regulatory officials having jurisdiction over any such Person; (e) as required by legal process or in connection with any action to enforce the
obligations of Borrower under the Loan Documents; and (f) of information which has previously become publicly available through the actions or inactions of a third party not, to such Person’s knowledge, in breach of an obligation of
confidentiality to Borrower or which has become stale through the passage of time or other change in circumstances. Borrower hereby authorizes the Lenders to issue press releases, advertisements and other promotional materials in connection with
their respective marketing activities, describing the Loan in general terms or in detail and the Lenders’ participation in the Loan. Such press releases shall be subject to Borrower’s prior approval, which approval shall not be
unreasonably denied or delayed. All references to any of the Lenders in any press release, advertisement or promotional material issued by Borrower shall be approved in writing by the Agent and such Lenders in advance of issuance. 

 
 9.26    Successors and Assigns.    This Agreement shall be binding upon and
inure to the benefit of the Borrower, the Lenders, all future holders of the Note and their respective successors and permitted assigns. The Borrower may not assign its rights hereunder or under any of the other Loan Documents or any interest herein
or therein without the prior written consent of the Lenders. 
  
 9.27    Participations and
Syndication. 
  
 (a)    Appointment and Responsibilities of the Agent: 

 
 (1)    Appointment and Authorization.    Each Lender hereby designates and
appoints LB Kiel, as the Agent of such Lender under this Agreement, and each of the other Loan Documents, and each such Lender authorizes the Agent as the agent for such Lender to take such action on its behalf under the provisions of this Agreement
and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to the Agent by the terms of this Agreement and each other Loan Document, together with such other powers as are reasonably incidental
thereto. Only the Agent (and not one or more of the Lenders) shall have the authority to act for the Lenders under this Agreement and the Loan Documents and each Lender acknowledges that all notices, demands or requests from such Lender to the
Borrower must be forwarded to the Agent for delivery to the Borrower; provided, 

 
 49 

 
however, such restrictions shall not preclude direct communications between the Lenders and the Borrower but it is understood that no agreements or actions of any Lender, other than the
Agent, shall have any effect hereunder or under the Loan Documents. Each Lender acknowledges that the Borrower has no obligation to act or refrain from acting on instructions or demands of one or more Lenders absent written instructions from the
Agent pursuant to its rights and authority hereunder. Notwithstanding any provision to the contrary contained in this Agreement or in the other Loan Documents, the Agent shall not have any duties or responsibilities, except those expressly herein
set forth, or any fiduciary relationship with the Borrower or any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities on the part of the Agent shall be read into this Agreement or the other Loan
Documents or otherwise exist against the Agent. In performing its functions and duties hereunder and under the other Loan Documents, the Agent shall (i) take the same care as generally consistent with the standard of care utilized by prudent
institutional commercial mortgage lenders in the United States in connection with similar mortgage loans which they own, subject to the limitations on liability contained herein and the provisions of this Agreement and the other Loan Documents and
the requirements of applicable Laws and (ii) in the act solely as the agent of the Lenders and does not assume nor shall the Agent be deemed to have assumed any obligation or relationship of trust or agency with or for any other party or any of
their respective successors and assigns. 
  
 (2)    Consultation with
Experts.    The Agent may consult with legal counsel (including internal counsel and counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or
omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts. 
  
 (3)    Reliance by Agent.    The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit,
letter, facsimile, telex or teletype message, statement or other document or conversation (including telephonic communications) believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon
advice and statements of legal counsel (including, without limitation, its internal counsel and counsel to the Borrower), independent accountants and other experts selected by the Agent. The Agent may deem and treat the payee of any Note as the
owner thereof for all purposes unless the Agent shall have received an executed Assignment and Acceptance Agreement in respect thereof. The Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other
Loan Document unless it shall first receive such advice or concurrence of the Lenders required pursuant to this Agreement. The Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or the other
Loan Documents in accordance with a request, approval or consent of the Lenders required by the terms of this Agreement, and such request, approval or consent and any action taken or failure to act pursuant thereto shall be binding upon all the
Lenders and all future holders of the Notes. 
  
 (4)    Notice of Default. 

 
 (i)    The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event
of Default, except with respect to defaults in the payment of principal, interest or fees required to be paid to the Agent for the account of the 

 
 50 

 
Lenders, unless the Agent has received notice from a Lender or the Borrower describing a material Default or Event of Default and stating that such notice is a “notice of default.” In
the event that the Agent receives such a notice, the Agent shall promptly give notice thereof to the Lenders. The Agent shall take such action with respect to such material Default or Event of Default as shall be directed by the Required Lenders;
provided that unless and until the Agent shall have received such directions, the Agent shall take such action, or refrain from taking such action, with respect to such material Default or Event of Default as the Agent shall reasonably deem
necessary to protect and preserve the Collateral and the Lenders’ rights and remedies under the Loan Documents. In no event shall the Agent be required to take any action which it determines to be contrary to Law. In no event shall the Agent be
required to take any action which might expose the Agent to liability unless all of the Lenders shall require the Agent to take such action and indemnify the Agent against such liability. 
  
 (ii)    Each Lender agrees that it shall promptly notify the Agent in writing after it first has knowledge of any material Default or Event of Default.
The Agent shall give a copy of any such notice received by the Agent to the other Lenders. 
  
 (5)    Deliveries of Documents to the Lenders.    The Agent shall promptly deliver to each of the Lenders copies of any and all documents, reports or other materials or notices delivered
to the Agent by the Borrower that the Lenders are required to receive under the Loan Documents or any other material documents or notices delivered to the Agent by the Borrower or notices sent to the Borrower by the Agent. 
  
 (6)    Non-Reliance on Agent and Other Lenders.    Each Lender expressly acknowledges that
neither the Agent, nor any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any representations or warranties to it and that no act by the Agent hereafter taken, including, without limitation, any review of the
affairs of the Borrower shall be deemed to constitute any representation or warranty by the Agent. Each Lender represents and warrants to the Agent that it has, independently and without reliance upon the Agent or any other Lender and based on such
documents and information as it has deemed appropriate (including the Loan Documents and related information), (I) made its own appraisal of and investigation into the business, operations, property, prospects, financial and other condition,
creditworthiness and solvency of the Borrower, (II) satisfied itself as to the due execution, legality, validity, enforceability, genuineness, sufficiency and value of any of the Loan Documents, the Collateral or any other instrument or document
furnished pursuant to any Loan Document, (III) made its own determination as to the validity, effectiveness, perfection, value and adequacy of the Liens, and (IV) made its own decision to acquire its Assigned Amount and Percentage Interest of the
Loan. Each Lender also represents that it will, independently and without reliance upon the Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action hereunder, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, prospects, financial and other condition and creditworthiness of the
Borrower. Except for notices, reports and other documents expressly required pursuant to the Loan Documents to be furnished by the Agent to the Lenders (and which are, in fact, received by the Agent), the Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information concerning the business, operations, property, prospects, financial and other condition or creditworthiness of the 

 
 51 

 
Borrower, which may come into the possession of the Agent or any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates. 
  
 (7)    Indemnification.    The Lenders agree to indemnify the Agent (in its capacity as
such) and its officers, directors, employees, representatives and agents (to the extent not reimbursed by the Borrower as may be required under the Loan Documents) ratably in accordance with their respective Percentage Interests, from and against
any and all liabilities, obligations, losses, damages, penalties, action, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever (including, without limitation, the fees and disbursements of counsel for the Agent or such
indemnified person in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or not the Agent or such Person shall be designated a party thereto) that may at any time (including, without limitation,
at any time following the payment of the Obligations) be imposed on, incurred by or asserted against the Agent or such Person as a result of, or arising out of, or in any way related to or by reason of, any of the transactions contemplated by the
Loan Documents or the execution, delivery or performance of this Agreement or any other Loan Document (but excluding any such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting
solely from the gross negligence or willful misconduct of the Agent or such Person as determined by a court of competent jurisdiction). 
  
 (8)    Agent in its Individual Capacity.    With respect to the Assigned Amount owned by the Agent, the Agent shall have the same rights and powers under this Agreement as any
Lender and may exercise the same as though it were not the Agent, and the terms “Lender” and “Lenders” shall include the Agent in its capacity as a Lender. LB Kiel hereby agrees that at all times during the term of the Loan so
long as no Event of Default has occurred and is continuing it will (i) retain a Percentage Interest in the Loan of not less than 27.7778% or (ii) hold a Loan Amount of not less than $25,000,000. 
  

(9)    Appointment of a Successor Agent.    The Agent may resign at any time by giving twenty (20) Business Days’
notice thereof to the Lenders and the Borrower. Upon any resignation by the Agent, the Required Lenders shall have the right to appoint a successor Agent upon prior notice to the Borrower; provided, however, that if no Event of Default
by the Borrower has occurred and is continuing, the appointment of such successor Agent shall require the prior approval of the Borrower, which approval shall not be unreasonably withheld or delayed. If no successor Agent shall have been so
appointed by the Required Lenders (and, if applicable, reasonably consented to by the Borrower), and shall have accepted such appointment, within thirty (30) days after the resigning Agent gives notice of resignation, then the resigning Agent may,
on behalf of the Lenders, upon prior notice to the Borrower, appoint a successor Agent, which shall be an Eligible Lender; provided, however, that if no Event of Default by the Borrower has occurred and is continuing, the appointment
of such successor Agent shall require the prior approval of the Borrower, which approval shall not be unreasonably withheld or delayed. Upon the acceptance of its appointment as the Agent hereunder, such successor Agent shall thereupon succeed to
and become vested with all of the rights and duties of the resigning Agent, and the resigning Agent shall be discharged from its duties and obligations hereunder thereafter arising. After any resigning Agent’s resignation hereunder as Agent,
the provisions of this Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Agent; provided, however, to the extent that 

 
 52 

 
the Agent is liable for any gross negligence or willful misconduct prior to the Agent’s resignation hereunder such liability will survive the Agent’s resignation. 

 
 (10)    Removal of Agent.    The Agent may be removed as Agent by the Required
Lenders for “cause.” In such event, the Required Lenders shall appoint a successor Agent upon prior notice to the Borrower; provided, however, if no Event of Default by the Borrower has occurred and is continuing, the
appointment of said successor Agent shall require the prior approval of the Borrower, which approval shall not be unreasonably withheld or delayed. As used herein the term “cause” shall mean the occurrence of one or more of the following
events: 
  
 (i)    Agent’s actual fraud in a material respect upon the parties to the Loan
Agreement: 
  
 (ii)    Agent’s gross negligence in the performance of any of its material
obligations under the Loan Agreement; 
  
 (iii)    Agent’s willful misconduct in a material
respect; or 
  
 (iv)    in the event LB Kiel fails to comply with the terms of 9.27(a)(8)
(interests assigned to an Affiliate of LB Kiel shall be deemed retention of the Percentage Interest and Loan Amount so assigned). 
  
 (b)    The Loans: 
  
 (1)    Individual
Loans.    The Borrower hereby acknowledges that the assignment of portions of the Loan by a Lender to another Lender will create as to each Lender an Individual Loan evidenced by each Lender’s respective Note and
collectively secured by the Deeds of Trust and governed by the other Loan Documents. The Borrower shall look solely to each Lender (including LB Kiel, in its capacity as a Lender) for the performance of such Lender’s obligations, covenants and
agreements under the Loan Documents on the part of each Lender to be performed or observed with respect to each Lender’s Individual Loan, subject to and upon the conditions, limitations and restrictions set forth herein and in the other Loan
Documents. 
  
 (2)    Distributions to the Lenders.    The Borrower
shall make all payments under the Loan Documents of principal of, and interest on, the Loans to the Agent as provided in Section 2.13(a) hereof. Upon receipt by the Agent of any such payment under the Notes, the Agent shall promptly distribute such
funds to each Lender in its proper share, subject, however, to Section 9.27(e) hereof in respect of any distributions which would, but for such provision, have been made to a Defaulting Lender. At Agent’s election, Agent may, but shall not be
required to, on the date of each scheduled payment due from Borrower on the Note or under any other Loan Document prefund to the other Lenders their respective shares of such payment. Should such payment not be received by Agent, on the date when
due, upon receipt of notice from Agent, each Lender shall immediately wire transfer to Agent the amount prefunded by Agent to it. 

 
 53 

  
 (3)    Priority of
Loans.    Except as otherwise provided in Section 9.27(e), each Lender’s Individual Loan shall be of equal priority with each other Lender’s Individual Loan, and no Individual Loan shall have priority or preference
over any other Individual Loan or the security therefor. 
  
 (4)    Books and
Records.    The Agent shall keep customary books and records relating to the Loan (including, without limitation, copies of the Loan Documents), and such books and records shall be available at the Agent’s office for the
Lenders’ reasonable inspection during the Agent’s normal business hours. The original Loan Documents shall be kept at the Agent’s address set forth on the signature pages of this Agreement, or at such other branch office of Agent as
may be designated from time to time by the Agent and shall be made available to any Lender for inspection at such office within a reasonable period of time following such Lender’s written request to inspect same. Upon the written request of any
Lender, the Agent shall provide copies of such books and records to the Lender so long as the Lender’s request is not unreasonable. 
  
 (c)    Decisions: 
  
 (1)    Decisions of the
Lenders.    Except as expressly set forth in Section 9.27(c)(2), (3) and (4) hereof, all Decisions shall be implemented or effected by the Agent. The Agent may request a Decision with respect to matters described in Sections
9.27(c)(2) or (3) hereof at any time by making a request for such Decision in writing to all of the Lenders and delivering the same to each of the Lenders in the manner specified in Section 9.6 hereof. Such request shall (i) contain an adequate
description of the Decision being requested and (ii) specify the reasons for such request. Such Decision may also be requested by telephone to each of the Lenders and the Decision thus requested shall be deemed given if the Agent has received
written approval of such Decision from the Required Lenders. If a Lender does not deliver to the Agent a written objection thereto within ten (10) Business Days after hand delivery by the Agent, or twelve (12) Business Days after mailing or delivery
to an express courier service of the request of the Agent, such Lender shall be deemed to have approved the requested Decision so long as such Decision, is not governed by the terms of Section 9.27(c)(2) hereof. Any Decision which constitutes a
modification or amendment to the Loan Documents, a waiver of any material term or provision of the Loan Documents or a consent to the departure by the Borrower therefrom shall be in writing whether the consent of the Lenders is required or not and
the Agent shall give written notice to the Lenders of any such waiver or consent in accordance with the terms of this Agreement. 
  
 (2)    Unanimous Approvals by the Lenders.    Neither the Agent nor any Lender shall (i) extend the Maturity Date, (ii) reduce the rate of interest on any Obligations, (iii) reduce the
principal amount of any Obligations, (iv) release any of the Collateral (except as otherwise expressly contemplated by the Loan Documents), (v) exercise any set-off or similar right against the Borrower, (vi) enter into any modification, renewal or
termination of the Nestle Lease, (vii) change any provision of this Section 9.27(c)(2) or the definition of Required Lenders, or (viii) release any obligor as an obligor under any Loan Document, in each case without the written consent of all the
Lenders. 
  
 (3)    Approvals by the Required Lenders. 

 
 54 

  
 (i)    Whenever the consent or approval of the Lenders (as
opposed to the Agent) is required under this Agreement, except as to those matters which require unanimous approval pursuant to Section 9.27(c)(2) hereof, such consent or approval shall be deemed given upon the receipt by the Agent of the written
consent or approval of the Required Lenders. 
  
 (ii)    Upon the Agent’s receipt of a
notice of default (as described in Section 9.27(a)(4) hereof), the Agent shall consult with the Lenders to determine a course of action which is acceptable to the Required Lenders. Subject to Section 9.27(a)(4)(i) and 9.27(c)(2) hereof, the Agent
shall pursue such course of action approved by the Required Lenders in respect of any Default or Event of Default, including, without limitation, acceleration of the indebtedness, commencement of any suit to foreclose upon and/or acquire title to
the Collateral in connection with such foreclosure, or the defense, settlement or compromise of any claims for liens which are prior to the Lien. In the event that the Required Lenders cannot decide which remedies, if any, are to be pursued, the
Agent may take such action as it deems advisable and in the best interests of the Lenders. 
  
 (iii)    The Agent agrees to take such action as the Required Lenders shall direct in connection with (I) the sale or other disposition of the Collateral, (II) the operation, repair, preservation, improvement and
management of the Collateral if the Agent or any nominee acting on behalf of the Agent and/or the Lenders acquires title to or possession of the Collateral in connection with the realization of the security for the Loan, and (III) any disposition of
the Collateral after an acquisition of title to or possession of the Collateral in connection with the realization of the security for the Loan. With respect to clause (I) above, if the Agent has not been directed by the Required Lenders within the
time period set forth in Section 9.27(c)(1) of this Agreement as to what action to take at the sale of the Collateral, the Agent shall bid at such sale the amount the Agent shall deem reasonable to protect, preserve and enforce the rights and claims
of the Lenders in respect of the Collateral (which may be bid in increments and with such initial bid, interim bids and/or final bid as the Agent considers advisable) up to the then outstanding balance of the Loan, including principal, interest,
costs and attorneys fees. Agent is expressly authorized to bid less than such amount, if in Agent’s judgment it is reasonable to do so, giving consideration to the value of the Collateral and the financial status of any Persons that may be
liable for the Obligations as disclosed by the most recent financial statements received by the Agent with respect to such Persons. With respect to clause (II) above, if the Agent is not directed by the Required Lenders within the time periods set
forth in Section 9.27(c)(1) of this Agreement, the Agent shall take such actions as are reasonable and necessary for responsible operation and management of the Collateral. With respect to clause (III) above, if the Agent is not directed within the
time periods set forth in Section 9.27(c)(1) of this Agreement, the Agent shall take such actions as the Agent shall deem reasonable to protect, preserve and enforce the rights and claims of the Lenders in respect of the Collateral. 

 
 (iv)    Any amendment or modification to the terms of the Loan Documents not requiring unanimous approval
of the Lenders pursuant to Section 9.27(c)(2) above and any Decision which constitutes a waiver of any material term or provision of the Loan Documents or the consent to a material departure by the Borrower therefrom shall be made and/or given only
with the consent of the Required Lenders. 

 
 55 

  
 (4)    Non-Material Waivers and
Consents.    Except as otherwise provided in Sections 9.27(c)(2) and (3) above, the Agent may waive any non-material provision of the Loan Documents or consent to any non-material departure by the Borrower from the terms and
provisions of the Loan Documents; provided, however, any such waivers and consents shall be effective only upon the execution by the Agent of a written agreement to that effect. The Agent shall give written notice to the Lenders of any
such waiver or consent. For purposes of this Section 9.27(c)(4), the Agent shall determine (in its sole discretion) whether or not a waiver or departure is material, it being the understanding of the Lenders that such waiver or departure shall be
considered non-material if it is administrative or technical in nature and does not involve matters of bankruptcy, payments of interest or principal, or matters which adversely affect the value of the Collateral. 
  
 (5)    Losses and Expenses.    All losses, costs, expenses, disbursements, liabilities,
fees (including reasonable attorneys’ fees and disbursements), obligations, damages, suits, actions and penalties of any kind or nature whatsoever (collectively, a “Loss”) incurred by the Agent (in its capacity as Agent) in
connection with the Loan, the enforcement thereof, or the realization of the security therefor shall be borne by the Lenders in accordance with each Lender’s Percentage Interest. 
  
 (i)    Each Lender shall within ten (10) Business Days of receipt of a written request by the Agent, reimburse the Agent (to the extent not otherwise
reimbursed by the Borrower) for such Lender’s Percentage Interest of (I) any out-of-pocket expenses incurred by the Agent in connection with any Default or Event of Default under the Loan Documents (including, without limitation, reasonable
fees and disbursements of outside counsel), (II) any advances made (x) to pay taxes or insurance, (y) to preserve and protect the Agent’s and the Lenders’ liens against the Collateral, protect, complete, repair, alter, renovate, operate,
manage, market and/or sell, the Collateral, or (z) to own, operate, manage, improve, alter, complete, renovate, repair, market and/or sell the Collateral after the acquisition thereof by the Agent or any nominee acting on behalf of the Agent and/or
the Lenders, and (III) any other expenses incurred to the extent not reimbursed by the Borrower in connection with the enforcement of the Loan Documents. 
  
 (ii)    Each of the Lenders hereby agrees and acknowledges that the Agent may, following acquisition of the Collateral, whether by foreclosure or otherwise, elect to vest title
thereto in the Agent or any Subsidiary or other nominee of the Agent, for the benefit of the Lenders ratably, and the provisions of this Agreement shall govern and control with respect to the relationship among the Lenders thereafter. 

 
 (d)    Successors and Assigns; Participations; Assignments: 
  
 (1)    Successors and Assigns.    This Agreement shall be binding upon and inure to the
benefit of the Borrower, the Lenders, the Agent, all future holders of the Notes and their respective successors and permitted assigns. The Borrower may not assign its rights hereunder or under any of the other Loan Documents or any interest herein
or therein without the prior written consent of all of the Lenders. The Lenders may participate, assign or sell all or any portion of their interest in an Individual Loan only as effected by operation of law in connection with the merger,
consolidation or dissolution of any Lender or as provided in this Section 

 
 56 

 
9.27(d). Notwithstanding the foregoing, any Lender may at any time assign all or any portion of its rights under this Agreement and the Loan Documents to a Federal Reserve Bank. No such
assignment shall release the assigning Lender from its obligations hereunder. The assigning Lender shall notify the Agent in writing of such transfer and promptly upon being notified in writing of such assignment, the Agent shall notify the Borrower
and the other Lenders of such occurrence. 
  
 (2)    Participations.    Any Lender may sell to one or more of its Affiliates (each a “Participant”) a participating interest in its Individual Loan, the Note held by
such Lender and/or any other interest of such Lender under the Loan Documents; provided, however, the Participant to which a participating interest has been sold shall not be treated as a Lender hereunder and, provided,
further, any Lender selling a participating interest in its Individual Loan shall under the terms of its participation agreement retain the right to make Decisions under this Agreement as if no such participating interest has been sold.
Notwithstanding any such sale by a Lender of a participating interest, such Lender’s rights and obligations hereunder shall remain unchanged, such Lender shall remain solely responsible for its performance hereunder, such Lender shall remain
the holder of its Note for all purposes hereunder and the Borrower and the Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under the Loan Documents. 

 
 (3)    Assignments.    Subject to the provisions of this Section 9.27(d), any
Lender may assign to any other Lender or any Affiliate of a Lender or, with the consent of the Agent, to any Eligible Lender (or, if an Event of Default has occurred and is continuing, any institution) all or any part of its interest in an
Individual Loan; provided, however, the amount of the Individual Loan so assigned shall be not less than $10,000,000, shall be in integral multiples of $1,000,000 and, if less than an entire Individual Loan is to be assigned, the
assigning Lender shall retain an Individual Loan of not less than $10,000,000. The assigning Lender shall give the Agent not less than thirty (30) days prior written notice of such assignment, which notice shall include the identity of the proposed
Assignee and sufficient financial information for the Agent to evaluate such proposed Assignee. If the approval of the Agent is required, the Agent shall, within 15 days after receipt of such notice and accompanying information, notify the assigning
Lender whether the proposed assignment has been approved, which approval shall not be unreasonably withheld. 
  
 (i)    Upon an assignment of all or a portion of a Lender’s Individual Loan, in accordance with the terms and conditions hereof, the parties to each such assignment shall execute and deliver to the Agent, for
its acceptance and recording in its records, an Assignment and Acceptance, together with any Note subject to such assignment and a processing and recordation fee of $3,500 payable by the assigning Lender. Upon such execution, delivery, payment,
acceptance and recording, from and after the effective date specified in each such Assignment and Acceptance, which effective date shall be at least three (3) Business Days after the delivery thereof to the Agent, (I) the assignee thereunder shall
be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender hereunder and under the Loan Documents and (II) the assigning
Lender thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its obligations under this Agreement and under the

 
 57 

 
Loan Documents from and after the date of such Assignment and Acceptance as to the portion of its Individual Loan which was assigned (and, in the case of an Assignment and Acceptance covering all
of the remaining portion of an assigning Lender’s rights and obligations under this Agreement and under the Loan Documents, such Lender shall cease to be a party hereto and thereto.) 
  
 (ii)    By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the Assignee thereunder confirm to and agree with
each other and the other parties hereto as follows: (I) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness or sufficiency of this Agreement or any other instrument or document furnished pursuant hereto; (II) such assigning Lender
makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower or the performance or observance by the Borrower of any of its obligations under this Agreement or any other instrument or
document furnished pursuant hereto; (III) such Assignee confirms that it has received a copy of this Agreement, together with copies of the most recent financial statements of the Borrower and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (IV) such Assignee shall, independently and without reliance upon the Agent, such assigning Lender or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (V) such Assignee appoints and authorizes the Agent to take such action and to
exercise such power under this Agreement as is delegated to the Agent by the terms hereof, together with such powers as are reasonably incidental thereto; and (VI) such Assignee agrees that it shall perform all of the obligations which by the terms
of this Agreement are required to be performed by it as a Lender. 
  
 (iii)    The Agent shall
maintain a record of the names and addresses of the Lenders and the principal amount owing to each Lender from time to time. Such record shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the Agent and the
Lenders may treat each Person whose name is so recorded as a Lender hereunder for all purposes of this Agreement. Such record shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice. 
  
 (iv)    Upon its receipt of an Assignment and Acceptance properly
completed and executed by an assigning Lender and its Assignee, together with any Note subject to such assignment, the Agent shall, if such Assignment and Acceptance has been authorized hereunder, (I) accept such Assignment and Acceptance, (II)
record the information contained therein and (III) give notice thereof to the Borrower. Within five Business Days after its receipt of such notice, the Borrower, without charge to the Agent or the Lenders, shall execute and deliver to the Agent a
new Note to the order of such Assignee in an amount equal to the Assigned Amount assigned to such Assignee and a new Note to the assigning Lender in an amount equal to the amount of the Individual Loan retained by the assigning Lender. Such new
Notes shall be dated the date of such Assignment and Acceptance and shall otherwise be in the 

 
 58 

 
form of the prior Note held by such assigning Lender. Notwithstanding the surrender of the Note by the assigning Lender, the amounts accrued and unpaid under such surrendered Note prior to the
effective date of the Assignment and Acceptance shall continue to constitute existing debt and remain payable by the Borrower to the assigning Lender. The assigning Lender and the Assignee shall directly between themselves make all appropriate
adjustments in payments under this Agreement and the Note for periods prior to the effective date of the Assignment and Acceptance. 
  
 (e)    Defaulting Lenders: 
  
 (1)    Lender’s Failure to Fund Expenses.    In the event of a failure of any Lender to reimburse the Agent for any sums demanded by the Agent pursuant to Section 9.27(c)(5) hereof
(after ten (10) Business Days’ notice from the Agent), the Agent, upon five (5) Business Days’ notice, may deduct such Lender’s pro rata share of said expenses, together with interest thereon at the Default Rate, from such
Lender’s distributions as set forth in Section 9.27(b)(2) unless the Lender’s failure to reimburse the Agent for sums so demanded is a result of a good faith dispute as to whether such expenses are proper, in which case the Agent and the
Lender shall, in good faith, attempt to resolve the dispute and the Lender shall not be subject to the set-off right hereunder until the earlier of (i) five (5) Business Days following resolution of the dispute or (ii) sixty (60) Business Days from
the date of the original demand by the Agent to the Lender. The Agent shall be entitled to set off and to appropriate and apply any Defaulting Lender’s distributions until the Agent has been fully reimbursed for such expenditures. 

 
 (2)    Voting Rights.    Notwithstanding anything to the contrary contained
herein, a Defaulting Lender shall not be entitled to vote on any matter as to which a vote by the Lenders is required hereunder, including, without limitation, any actions or consents on the part of the Agent as to which the approval or consent of
all the Lenders or the Required Lenders is required under Sections 9.27(c)(2) or (3) hereof, so long as such Lender is a Defaulting Lender. For purposes of any such vote, the Agent shall recalculate the Percentage Interests of all Lenders which are
not Defaulting Lenders as if the Individual Loans of the Defaulting Lenders do not exist. 
  
 (3)    Remedies.    In addition to and not in limitation of the terms and provisions of Section 9.27(e)(1) and (2) hereof, the Borrower, the Agent and each of the Lenders, which are not
Defaulting Lenders, may in their respective sole and absolute discretion, exercise any and all other rights and remedies available at Law or in equity in respect of a Defaulting Lender. 
  
 (f)    Miscellaneous: 
  
 (1)    Amounts Received by the Lenders.    No Lender shall accept, receive or apply any repayment with respect to its Individual Loan in any form or manner, whether by counterclaim,
set-off or otherwise, other than as may be expressly provided in the Loan Documents or in this Agreement, except upon prior written agreement of all of the other Lenders. If, however, any Lender obtains any payment under any Loan Document, such
Lender shall act as a trustee for the benefit of the other Lenders to the extent that such Lender has received a repayment in an amount in excess of its Percentage Interest of all repayments made by 

 
 59 

 
the Borrower under all of the Loans and said Lender shall pay over such excess payment to the Agent for distribution to the other Lenders in accordance with their respective Percentage Interests
in the Loan. 
  
 (2)    No Joint Venture.    Neither the execution of
this Agreement nor the selling of an interest in the Loan and the security therefor, nor any agreement to share in profits or losses as provided herein is intended to be, nor shall it be construed to be, the formation of a partnership or joint
venture among the Lenders. 
  
 (3)    Acknowledgment by Parties
Hereto.    The agreement to and acceptance of this Agreement by the parties hereto, indicated by the execution of this Agreement, shall evidence (i) each Person’s acceptance of all the terms and conditions of this
Agreement and the other Loan Documents and (ii) each Person’s consent to the Agent’s acting as the Agent on behalf of the Lenders with regard to all aspects of the administration, enforcement and collection of the Loan and to all matters
pertaining to the Loan Documents as provided for in the Loan Documents and herein. 
  
 (4)    Right of Lenders and Agent to Transact Business.    The Lenders and the Agent and/or any of their Affiliates may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with, the Borrower, the General Partners, DERA, or any other Person without any duty to account therefor to the other Lenders and/or the Agent, as the case may be. 
  
 (5)    Exculpatory Provisions.    The Agent shall not be (i) liable for any action
lawfully taken by it or any Person described in Section 9.27(a)(2), hereof or in connection with this Agreement or any other Loan Document (except for the Agent’s own gross negligence or willful misconduct), or (ii) responsible in any manner to
any of the Lenders for any recitals, statements, representations or warranties made by the Borrower, a Lender or any other Party contained in this Agreement or any other Loan Document, or by the Borrower, a Lender or any other Party in any
certificate, report, statement or other document referred to or provided for in, or received under or in connection with, any other Loan Document or for the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any
other Loan Document or any such certificate, report, statement or other document, or for the value of any Collateral, or for any failure of the Borrower, any Lender or any other Party to perform or observe their obligations hereunder or thereunder.
The Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the
properties, or the books or records of the Borrower. This Section 29.7(f)(5) is intended to govern solely the relationship between the Agent, on the one hand, and the Lenders, on the other. 
  
 (6)    Withholding Taxes.    Each Lender represents that it is entitled to receive any payments to be made to it hereunder
without the withholding of any tax and will furnish to the Agent such forms, certifications, statements and other documents as the Agent may request from time to time to evidence such Lender’s exemption from the withholding of any tax imposed
by any Governmental Agency or to enable the Agent to comply with any applicable Laws or regulations relating thereto. Without limiting the generality of the foregoing, if any 

 
 60 

 
Lender is not created or organized under the laws of the United States of America or any state thereof, in the event that the payment of interest by the Borrower is treated for U.S. income tax
purposes as derived in whole or in part from sources from within the U.S., such Lender shall furnish to the Agent Form 4224, Form W-8BEN or Form 1001 of the Internal Revenue Service, or such other forms, certifications, statements or documents, duly
executed and completed by such Lender, as evidence of such Lender’s exemption from the withholding of U.S. income tax with respect thereto. The Agent shall not be obligated to make any payments hereunder to such Lender in respect of the Loan
until such Lender shall have furnished to the Agent the requested form, certification, statement or document. 
  
 (7)    Limitation of Liability.    No claim may be made by the Borrower or any other Person against the Agent or any Lender or the Affiliates, directors, officers, employees, attorneys
or agents of any of such Persons for any punitive damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement, or any act, omission or event
occurring in connection therewith; and the Borrower hereby waives, releases and agrees not to sue upon any claim for any such punitive damages. 
  
 (8)    Assigned Amount.    It is understood and agreed that the Assigned Amount allocated to each of the Lenders pursuant to the terms and conditions of
this Agreement may not be increased or decreased without the prior written consent of the Lender whose Assigned Amount is to be increased or decreased. 
  
 9.28    Financing Statements.    Borrower hereby authorizes and consents to the filing by Lenders of UCC-1 Financing Statements in the appropriate
governmental office for the purpose of perfecting Lenders’ security interest in any Personal Property. 
  
 9.29    Leasing Matters. 
  
 (a)    Prior to entering
into any new lease, Borrower shall prepare and submit to Agent for Agent’s prior approval, which approval shall not be unreasonably withheld or delayed, a standard lease form (“Standard Lease Form”). Borrower shall not enter into any
lease which is not an Approved Lease. 
  
 (b)    Leases prepared on the Standard Lease Form and
which are not Major Leases shall be deemed Approved Leases. All Major Leases of the Building shall require the approval of the Agent or the Required Lenders as follows: 
  
 (i)    Major Leases which affect together with any other existing leases with the same tenant up to 54,000 square feet of rentable space in the
Building or which would affect up to 10% of the gross rental income of the Building must be submitted to and approved by the Agent in writing in each instance as to: (A) the economic and other terms of every such lease and occupancy agreement; (B)
the creditworthiness of the tenant under such a lease; (C) each guarantor of a tenant’s obligations, if any; (D) any consent to subletting or assignment if the original tenant is relieved of liability under such a lease; (E) any modification,
waiver or amendment to such lease that reduces rent, reduces the term or limits a tenant’s liability 

 
 61 

 
thereunder; and (F) any termination, cancellation or surrender of such a lease other than as permitted by the lease or upon a default by a tenant; 
  
 (ii)    Major Leases which affect together with any other existing leases with the same tenant more than 54,000
square feet of rentable space in the Building or which affect more than 10% of the gross rental income of the Building, must be submitted to and approved by the Required Lenders as to those items detailed in subsections (A) through (F) of the prior
paragraph; 
  
 (iii)    Any Major Lease or modification or amendment to a Major Lease, which has
been so approved by Agent, or Required Lenders, as the case may be, shall be an Approved Lease. 
  
 9.30    Borrower’s Request.    Any request by Borrower for an approval from Agent or Required Lenders with respect to leasing matters shall be accompanied, at a minimum, by the
following: (a) the proposed lease or amendment or modification thereof complete with all applicable schedules and exhibits; (b) a complete copy of any proposed guaranty; (c) comprehensive financial information with respect to the proposed tenant
and, if applicable, the proposed guarantor (as to new leases or amendments or modifications to existing leases involving material economic changes); (d) a brief written summary of the proposed permitted uses and a discussion of how such uses relate
to other tenancies then existing at the Building; and (e) an executive summary of the terms and conditions of the proposed lease, and, if applicable, the proposed guaranty. 
  
 9.31    Agent and Lender Response.    Borrower shall endeavor to keep Agent informed with respect to leasing matters
requiring Agent’s or Required Lenders’ approval under Section 9.29(b) of this Agreement prior to finalizing such leasing matters. Specifically, Borrower shall endeavor to provide to Agent the following documents (collectively, the
“Lease Package”): (a) with respect to a new lease, information regarding the prospective tenant’s business, character and creditworthiness and a signed letter of intent with the prospective tenant, containing all of the material terms
of the proposed lease; or (b) with respect to a renewal, amendment or termination of an existing lease, a signed letter of intent or proposal with the tenant, containing all of the material terms of the proposed renewal, amendment or termination.
Agent and, if applicable, the Required Lenders shall act on requests from Borrower for any approval under Section 9.30 of this Agreement in a commercially reasonable manner and shall respond to any such request by the later of the following dates
(“Response Time”): if only Agent’s approval is required, ten (10) Business Days after Agent’s receipt of the Lease Package for the specific transaction; or, if a Lease Package has previously been provided to Agent, five (5)
Business Days after Agent’s receipt of the final lease or lease renewal, amendment or termination, as the case may be, provided the Lease Package was delivered at least five (5) Business Days previously and no material change to the Lease
Package has occurred; if the approval of the Required Lenders is required, fifteen (15) Business Days after the Required Lenders’ receipt of the Lease Package for the specific transaction; or, if a Lease Package has previously been provided to
Required Lenders, ten (10) Business Days after Required Lenders receipt of the final lease or lease renewal, amendment or termination, as the case may be, provided the Lease Package was delivered to the Required Lenders at least five (5) Business
Days previously and no material change has occurred to the Lease Package. If Agent, and if applicable, Required 

 
 62 

 
Lenders do not respond within the Response Time, Borrower’s request shall be deemed approved. Agent’s and, if applicable, the Required Lenders’ response may consist of an approval
or disapproval of the request, or a conditional approval thereof subject to specified conditions, or a request for further data or information, or any combination thereof. Whenever reasonably possible all Borrower’s requests for lease approvals
shall be accompanied by an express description of any deviations from the Standard Form Lease. After a new lease or an amendment is signed, copies of them shall be delivered to Agent. Borrower shall have the right to execute leases requiring
Agent’s and, if applicable, the Required Lenders’ approval prior to Agent’s and, if applicable, the Required Lenders’ giving such approval, provided that any such lease states that its effectiveness is subject to receipt of
Agent’s or, if applicable, Required Lenders’ approval. 
  
 9.32    Subordination,
Non-Disturbance and Attornment Agreements.    At the request of Agent, each tenant shall be required to enter into a Subordination, Non-Disturbance and Attornment Agreement with Agent. If the lease is not a Major Lease,
paragraph 4 of the Subordination, Non-Disturbance and Attornment Agreement may be amended to read as follows: “The Tenant shall not, without the prior written consent of the Mortgagee prepay any of the rents, additional rents or other sums due
under the Lease for more than one (1) month in advance of the due date thereof.” Agent shall, upon request of Borrower, enter into a Subordination, Non-Disturbance and Attornment Agreement with respect to any Major Lease approved by Lender or
the Required Lenders, as applicable and, each lease entered into subsequent to the Closing Date shall obligate the tenant thereunder to enter into a Subordination, Non-Disturbance and Attornment Agreement upon the request of Agent. 

 
 63 

  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written. 
  
 
	 “BORROWER”
 	 	  
	 
	 DOUGLAS EMMETT JOINT VENTURE, a California general partnership
  
 
	 By:
 

 	 	 Douglas Emmett Realty Fund, a California Limited Partnership, general partner
  
 
	  	 	 By:
 

 	 	 Douglas Emmett Realty Advisors, a California corporation, General Partner
  
 
	  	 	  	 	 By:
 	 	 /s/    Jordan L. Kaplan
 

	  	 	  	 	  	 	 Jordan L. Kaplan
 
	  	 	  	 	  	 	 Chief Financial Officer
  
 
	 By:
 

 	 	 Douglas Emmett Realty Fund No. 2, a California Limited Partnership, general partner
  
 
	  	 	 By:
 

 	 	 Douglas Emmett Realty Advisors, a California corporation, General Partner
  
 
	  	 	  	 	 By:
 	 	 /s/    Jordan L. Kaplan
 

	  	 	  	 	  	 	 Jordan L. Kaplan
 
	  	 	  	 	  	 	 Chief Financial Officer
 
	 Its Vice President
  
 
	 Address:
  
 	 	  	 	  
	 Douglas Emmett Joint Venture
 
	 808 Wilshire Boulevard, Suite 200
 
	 Santa Monica, California 90401
 
	 Attn:
 	 	 Mr. Jordan L. Kaplan
 
	  	 	 Mr. Jon Dishell
  
 
	 Telephone: (310) 255-7700
 
	 Telecopier: (310) 255-7702
 

 

 
 64 

 
	 With a copy to:
  
 
	 Allen, Matkins, Leck, Gamble & Mallory
 
	 515 South Figueroa Street
 
	 7th Floor
 
	 Los Angeles, California 90071
 
	 Attn:    David A. B. Burton, Esq.
  
 
	 Telephone: (213) 955-5610
 
	 Telecopier: (213) 620-8816
  
 
	 “LENDER”
 	 	  
	  	 	  
	 LANDESBANK SCHLESWIG-HOLSTEIN GIROZENTRALE, KIEL, a German chartered bank
  
 
	 By:
 	 	 /s/    Michael Adamska
 

	  	 	 Dr. Michael Adamska
 
	  	 	 Its: Senior Vice President
  
 
	 By:
 	 	 /s/    Ulf Sonnabend
 

	  	 	 Ulf Sonnabend
 
	  	 	 Its: Vice President
  
 
	 Address:
 	 	  
	 
	 International Real Estate Finance
 
	 Martensdamm 6
 
	 24103 Kiel
 
	 Germany
 
	 Attention:  Mr. Hans Loetzer
  
 
	 with a copy to:
  
 
	 Loeb & Loeb LLP
 
	 1000 Wilshire Blvd., Suite 1800
 
	 Los Angeles, California 90017
 
	 Attn: Joseph P. Heffernan, Esq.
  
 
	 Telephone: (213) 688-3602
 
	 Telecopier: (213) 688-3460
  
 
	 [Signatures continued on next page]
 

 

 
	 “AGENT”
 	 	  
	  	 	  
	 LANDESBANK SCHLESWIG-HOLSTEIN GIROZENTRALE, KIEL, a German chartered bank
  
 
	 By:
 	 	 /s/    Michael Adamska
 

	  	 	 Dr. Michael Adamska
 
	  	 	 Its: Senior Vice President
  
 
	 By:
 	 	 /s/    Ulf Sonnabend
 

	  	 	 Ulf Sonnabend
 
	  	 	 Its: Vice President
 

 

 TABLES OF EXHIBITS AND SCHEDULES 
  
 
	 EXHIBITS
 	  	  	  	  
	  	  	  	  	  
	 Exhibit A
 	  	 -  
 	  	 Assignment and Acceptance Agreement
 
	 Exhibit B
 	  	 -  
 	  	 Subordination, Non-Disturbance and Attornment Agreement
 
	  	  	  	  	  
	 SCHEDULES
 	  	  	  	  
	  	  	  	  	  
	 Schedule 3.1 (b)
 	  	 -  
 	  	 Debt Service Coverage Closing Certificate
 
	 Schedule 4.6
 	  	 -  
 	  	 Other Liabilities and Material Adverse Changes
 
	 Schedule 4.8
 	  	 -  
 	  	 Litigations
 
	 Schedule 4.10
 	  	 -  
 	  	 Plans
 
	 Schedule 4.13
 	  	 -  
 	  	 Tax Matters
 
	 Schedule 4.16
 	  	 -  
 	  	 Intangible Assets
 
	 Schedule 5.14
 	  	 -  
 	  	 Debt Service Coverage Ratio Certificate
 
	 Schedule 7.1 (e)
 	  	 -  
 	  	 Compliance Certificate
 

 
  

 
 iLease Agreement for Nestle Building

  
 EXHIBIT 10.95 
  
 LEASE AGREEMENT FOR NESTLE BUILDING 

  
 ORIGINAL 
  
 December 21, 1987 
  
 CARNATION BUILDING 
 OFFICE LEASE 
  
  

 
  
  
  
  
  

 
 LANDLORD:    EIGHT HUNDRED NORTH BRAND BOULEVARD, a California 
                             Limited Partnership 
  
 TENANT:          CARNATION COMPANY, a Delaware Corporation 
  
  
  
  
 Dated for reference purposes as of: 
  
 December 22, 1987 
  

  
 TABLE OF CONTENTS 
  
 
	 GENERAL CONDITIONS
 	  	 1
 
	 A.    Consent/Duty to Act Reasonably
 	  	 1
 
	 B.    Quality of Construction — Standard for Maintenance and Repair
 	  	 1
 
	 C.    Covenants and Agreements
 	  	 3
 
	 D.    Non-Disturbance, Attornment and Subordination Agreement
 	  	 3
 
	 E.    Days
 	  	 4
 
	 F.    Rules and Regulations
 	  	 4
 
	 G.    Abatement of Rent When Tenant is Prevented from Using Premises
 	  	 4
 
	 H.    Signage
 	  	 4
 
	 I.    Restriction on Leasing
 	  	 6
 
	 J.    Special Locks
 	  	 7
 
	 K.    Building Antenna
 	  	 7
 
	 L.    Landlord’s Obligations to Construct Project
 	  	 8
 
	 
	 Section 1.    Terms and Definitions
 	  	 8
 
	 (a)    Landlord
 	  	 8
 
	 (b)    Landlord’s Address
 	  	 8
 
	 (c)    Tenant
 	  	 8
 
	 (d)    Tenant’s Address
 	  	 8
 
	 (e)    Building Address
 	  	 9
 
	 (f)    Suite Number
 	  	 10
 
	 (g)    Floor(s) Upon Which Premises Located
 	  	 10
 
	 (h)    Premises
 	  	 11
 
	 (i)    Site
 	  	 11
 
	 (j)    Approximate Rentable Square Feet Within Premises
 	  	 11
 
	 (k)    Term
 	  	 11
 
	 (l)    Building Standard Work
 	  	 11
 
	 (m)    Building Nonstandard Work
 	  	 12
 
	 (n)    Aggregate Improvements
 	  	 12
 
	 (o)    Estimated Commencement Date
 	  	 12
 
	 (p)    Commencement Date
 	  	 12
 
	 (q)    Annual Basic Rent
 	  	 17
 
	 (r)    Operating Expenses Allowance
 	  	 17
 
	 (s)    Tenant’s Percentage Share
 	  	 18
 
	 (t)    Security Deposit
 	  	 18
 
	 (u)    Permitted Use
 	  	 18
 
	 (v)    Broker
 	  	 18
 
	 (w)    Landlord’s Construction Representatives
 	  	 18
 
	 (x)    Tenant’s Construction Representatives
 	  	 18
 
	 (y)    Parking
 	  	 18
 
	 (z)    Riders
 	  	 19
 

 

 
	 (aa)     Lease Year
 	  	 19
 
	 (bb)     Exhibits
 	  	 19
 
	 Section 2.    Premises and Common Areas Leased
 	  	 19
 
	 Section 3.    Term
 	  	 22
 
	 Section 4.    Possession
 	  	 22
 
	 Section 5.    Annual Basic Rent
 	  	 23
 
	 (a)    Payment of Rent
 	  	 23
 
	 (b)    Rent Increases and Determinations
 	  	 24
 
	 Section 6.    Rental Adjustment
 	  	 27
 
	 Section 7.    Security Deposit
 	  	 37
 
	 Section 8.    Use
 	  	 37
 
	 Section 9.    Payments and Notices
 	  	 38
 
	 Section 10.    Brokers
 	  	 39
 
	 Section 11.    Holding Over
 	  	 40
 
	 Section 12.    Taxes on Tenant’s Property
 	  	 40
 
	 Section 13.    Condition of Premises
 	  	 41
 
	 Section 14.    Alterations
 	  	 41
 
	 Section 15.    Repairs
 	  	 46
 
	 Section 16.    Liens
 	  	 48
 
	 Section 17.    Entry by Landlord
 	  	 49
 
	 Section 18.    Utilities and Services
 	  	 49
 
	 Section 19.    Indemnification
 	  	 53
 
	 Section 20.    Damage to Tenant’s Property
 	  	 55
 
	 Section 21.    Insurance
 	  	 55
 
	 Section 22.    Damage or Destruction
 	  	 60
 
	 Section 23.    Eminent Domain
 	  	 62
 

 

 
 2 

  
 
	 Section 24.    Bankruptcy
 	  	 63
 
	 Section 25.    Defaults and Remedies
 	  	 63
 
	 Section 26.    Assignment and Subletting
 	  	 65
 
	 Section 27.    Quiet Enjoyment
 	  	 68
 
	 Section 28.    Subordination
 	  	 68
 
	 Section 29.    Estoppel Certificate
 	  	 69
 
	 Section 30.    Building Planning
 	  	 70
 
	 Section 31.    Rules and Regulations
 	  	 70
 
	 Section 32.    Conflict of Laws
 	  	 70
 
	 Section 33.    Successors and Assigns
 	  	 70
 
	 Section 34.    Surrender of Premises
 	  	 70
 
	 Section 35.    Professional Fees
 	  	 70
 
	 Section 36.    Performance by Tenant
 	  	 71
 
	 Section 37.    Mortgagee and Senior Lessor Protection
 	  	 71
 
	 Section 38.    Definition of Landlord
 	  	 72
 
	 Section 39.    Waiver
 	  	 72
 
	 Section 40.    Identification of Tenant
 	  	 73
 
	 Section 41.    Parking and Transportation
 	  	 73
 
	 Section 42.    Office and Communications Services
 	  	 74
 
	 Section 43.    Terms and Headings
 	  	 75
 
	 Section 44.    Examination of Lease
 	  	 76
 
	 Section 45.    Time
 	  	 76
 
	 Section 46.    Prior Agreement; Amendments
 	  	 76
 
	 Section 47.    Separability
 	  	 76
 
	 Section 48.    Recording
 	  	 76
 

 

 
 3 

  
 
	 Section 49.    Limitation on Liability
 	  	 76
 
	 Section 50.    Riders
 	  	 76
 
	 Section 51.    Signs
 	  	 77
 
	 Section 52.    Modification for Lender
 	  	 77
 
	 Section 53.    Accord and Satisfaction
 	  	 77
 
	 Section 54.    Financial Statements
 	  	 77
 
	 Section 55.    Tenant as Corporation
 	  	 77
 
	 Section 56.    No Partnership of Joint Venture
 	  	 78
 
	 Section 57.    Option to Extend
 	  	 78
 
	 Section 58.    Option to Expand
 	  	 78
 
	 (A)    First Option Space
 	  	 79
 
	 (B)    Second Option Space
 	  	 79
 
	 (C)    Third Option Space
 	  	 79
 
	 (D)    Fourth Option Space
 	  	 80
 
	 (E)    Fifth Option Space
 	  	 80
 
	 (F)    Terms
 	  	 81
 
	 (G)    Documentation
 	  	 82
 
	 (H)    Tenant Allowance
 	  	 82
 
	 (I)    Delivery
 	  	 82
 
	 (J)    Not Personal
 	  	 83
 
	 (K)    Not Forfeitable
 	  	 83
 
	 Section 59.    First Right to Lease
 	  	 83
 
	 Section 60.    Directory Board
 	  	 85
 
	 Section 61.    Management
 	  	 85
 
	 Section 62.    Storage
 	  	 85
 
	 Section 63.    Dispute Resolution
 	  	 86
 
	 Exhibit A—Outline of Floor Plan of Premises (first reference to this Exhibit appears on page 19
of the Lease)
 
	 Exhibit B—Site Plan (first reference to this Exhibit appears on page 10 of the
Lease)
 

 

 
 4 

  
 
	 Exhibit C—Work Letter Agreement (first reference to this Exhibit appears on page 19 of the
Lease)
 
	 Attachment 1—Required Condition of Each Package at Time of Delivery (first reference to Attachment 1 appears on
page 13 of the Lease)
 
	 Attachment 2—Carnation Company Headquarters Project Description (first reference to Attachment 2 appears on page 8
of the Lease)
 
	 Attachment 3—Carnation Plaza Preliminary Project Schedule (first reference to Attachment 3 appears on page 12 of
the Lease)
 
	 Exhibit D—Sample Form of Notice of Lease Term Dates (first reference to this Exhibit appears on page 15 of
the Lease)
 
	 Exhibit E—Sample Form of Tenant Estoppel Certificate (first reference to this Exhibit appears on page 69 of
the Lease)
 
	 Exhibit F—Rules and Regulations (first reference to this Exhibit appears on page 4 of the
Lease)
 
	 Exhibit G—Definition of Rentable Square Feet (first reference to this Exhibit appears on page 20 of the
Lease)
 
	 Exhibit H—Cleaning Specifications (first reference to this Exhibit appears on page 50 of the
Lease)
 
	 Exhibit I—Security Specifications (first reference to this Exhibit appears on page 50 of the
Lease)
 
	 Exhibit J—Parking Rules and Regulations (first reference to this Exhibit appears on page 74 of the
Lease)
 
	 Partial Glossary of Terms and Concepts—(Not referred to in Lease—not part of Lease—added as a
convenience to the parties.
 

 

 
 5 

  
 December 21, 1987 
 [019:Carnation.LC] 
  
 CARNATION BUILDING OFFICE LEASE 
  
 THIS LEASE is made as of the 22nd day of December, 1987,
by and between EIGHT HUNDRED NORTH BRAND BOULEVARD, a California Limited Partnership (“Landlord”), and CARNATION COMPANY, a Delaware Corporation (“Tenant”), who hereby agree to enter into this Lease pursuant to all of the terms
and conditions set forth in this Lease. 
  
 GENERAL CONDITIONS 
  
 The following are general conditions which govern all of the rights and obligations of Landlord and Tenant and supersede, to the extent
appropriate, any contrary provision in the Lease. 
  
 A.    Consent/Duty To Act
Reasonably. Regardless of any reference to the words “sole” or “absolute,” except for matters which could have an adverse effect on the Building’s plumbing, HVAC or electrical systems, or which could adversely affect the
exterior appearance of the Building, any time the consent of Landlord or Tenant is required, such consent shall not be unreasonably withheld or delayed. Whenever the Lease grants Landlord or Tenant the right to take action, exercise discretion,
establish rules and regulations or make allocations or other determinations, Landlord and Tenant shall act reasonably and in good faith and take no action which might result in the frustration of the reasonable expectations of a sophisticated tenant
or landlord concerning the benefits to be enjoyed under the Lease. 
  
 B.    Quality of
Construction—Standard for Maintenance and Repair. Landlord hereby warrants to Tenant that the Building and the Premises, to the extent constructed by Landlord, or the contractor selected by Landlord, and to the extent designed by Landlord,
or the architect selected by Landlord, will not contain asbestos and shall be designed and constructed in a first-class manner and in full compliance with all governmental regulations, ordinances, and laws existing at the time of design and
construction, including laws concerning hazardous waste and materials, in order to make the Building and the Premises, to the extent designed and constructed by Landlord, and the contractor and architect selected by Landlord, suitable for occupancy
by Tenant and tenants
 

 
utilizing the space for business offices. Tenant agrees that the portion of the Premises to be constructed or designed by Tenant, and the architect and contractor selected by Tenant, will not
contain asbestos and shall be designed and constructed in a first-class manner and in full compliance with all governmental regulations, ordinances and laws existing at the time of construction, including laws concerning hazardous waste and
materials, in order to make the Premises suitable for occupancy for business offices. Landlord will be fully responsible for making all alterations and repairs to the Building and the Premises at its cost, which shall not be included as Operating
Expenses, resulting from or necessitated by the failure of Landlord and/or Landlord’s contractor and designer to comply with governmental regulations, ordinances and laws in effect at the time of design and construction. Tenant will be fully
responsible for making alterations and repairs to the Premises, at its cost, resulting from or necessitated by the failure of Tenant and/or Tenant’s contractor and architect to comply with all governmental regulations, ordinances and laws in
effect at the time of design and construction. 
  
 In the unlikely event asbestos or other hazardous waste is found
in the Premises or Building, Landlord, at its cost, which will not be included as Operating Expenses, shall use its best efforts to remove any and all asbestos and other hazardous waste (provided, however, that for the purpose of creating singular
liability to Lincoln Property Company N.C., Inc. (“LPC”), and for the purpose of excluding removal costs from Operating Expenses, hazardous waste shall only consist of items considered to be hazardous waste as of January 1, 1988) from the
Premises and the Building (except the existence of asbestos and other hazardous waste which is caused by Tenant, or other tenants, in which case, Tenant shall use its best efforts to remove such asbestos or other hazardous waste caused by it at
Tenant’s expense). The conduct of such removal shall be in accordance with all applicable governmental rules, laws, regulations and ordinances. Landlord shall deliver to Tenant a certified (by Landlord) actual copy of the report received by
Landlord from the licensed contractor who has managed or will manage the work of asbestos removal (and to the extent one is provided, or required by law, a report from the subcontractor that caused such removal). In the event Tenant is required to
perform such removal work, Tenant shall deliver to Landlord a similar report certified by Tenant with respect to such work. Such report shall state that such work has been performed in accordance with all then-existing applicable governmental rules,
laws, regulations and ordinances, and such report shall
 

 
 2 

 
reflect the results of the air tests conducted following the work. LPC, one of the entities affiliated with one of the partners of Landlord, hereby agrees to indemnify and hold harmless Tenant
from any and all claims arising from any claim or damages of any kind arising from the past or present existence of, or removal of, asbestos or other hazardous waste in the Building, except to the extent same occurred as a result of the act of
Tenant. Otherwise, Landlord shall maintain the Building, as set forth in Section 15(b), and Premises in excellent condition and repair, the cost of which shall be included in Operating Expenses. 
  

C.    Covenants and Agreements. The failure of Landlord or Tenant to insist in any instance on the strict keeping, observance or performance
of any covenant or agreement contained in the Lease, or the exercise of any election contained in the Lease shall not be construed as a waiver or relinquishment for the future of such covenant or agreement, but the same shall continue and remain in
full force and effect. 
  
 D.    Non-Disturbance, Attornment and Subordination Agreement.
Landlord agrees that concurrently with the acquisition of the Site, it will allow Tenant to record a short-form memorandum of lease, at Tenant’s sole expense (including payment of any transfer taxes), and, when the first encumbrance is placed
on the Site after the Site is acquired by Landlord, Landlord shall, within thirty (30) days of the placing of such encumbrance, provide Tenant with a non-disturbance, attornment and subordination agreement (“non-disturbance agreement”) in
a commercially reasonable form from any ground lessors, mortgage holders or lien holders of Landlord then in existence. Landlord also agrees to provide Tenant with non-disturbance agreements in commercially reasonable form from any ground lessors,
mortgage holders or lien holders of Landlord who later come into existence prior to the expiration of the Term of the Lease in consideration of, and as a condition precedent to, Tenant’s agreement to be bound by Section 28 of the Lease.
Landlord agrees to notify each prospective lender of the terms and conditions of this Lease. Landlord shall provide any approved subtenant subleasing a full floor or more, or approved assignees of Tenant, for subleases or an assignment of the Lease
at rental rates equal to or higher than the rates payable by Tenant under this Lease, with recognition agreements from Landlord agreeing to honor the sublease or Lease (in the case of an assignment) as a direct sublease or Lease with Landlord
even if Tenant defaults under the Lease; provided, however, that nothing herein or in any
 

 
 3 

 
such recognition agreement shall relieve Tenant of its obligations under this Lease. 
  
 E.    Days. All references herein and in the Lease to “days” involving less than ten (10) days shall mean business days, and all references to “notice” shall mean written notice
given in compliance with Section 9 of the Lease. 
  
 F.    Rules and Regulations. Landlord
agrees that the Rules and Regulations of the Building, attached to and made a part of the Lease as Exhibit “F”, shall not be changed or revised or enforced in any unreasonable way by Landlord nor enforced or changed by Landlord in
such a way as to interfere with the purposes permitted under Section 8 of the Lease. 
  
 G.    Abatement of Rent When Tenant Is Prevented From Using Premises. In the event that Tenant is prevented from using, and does not use, the Premises or any portion of the Premises for five (5) consecutive
business days or ten (10) business days in any twelve (12) month period (“Eligibility Period”) as a result of any damage or destruction to the Premises, or any failure of Landlord to provide services or access to the Premises, then, Tenant
s rent shall be abated or reduced, as the case may be, during the period after the Eligibility Period that Tenant continues to be so prevented from using the Premises or portion thereof in the proportion that the rentable area of the portion of the
Premises that Tenant is prevented from using, and does not use, bears to the total rentable area of the Premises. However, in the event that Tenant is prevented from conducting its business in any portion of the Premises for a period of time
exceeding the Eligibility Period, and the remaining portion of the Premises is not sufficient to allow Tenant to effectively conduct its business therein, and if Tenant does not conduct its business from such remaining portion, then, during the
period following the Eligibility Period during which Tenant is so prevented from effectively conducting its business therein, the rent for the entire Premises shall be abated; provided, however, if Tenant reoccupies and conducts its business from
any portion of the Premises during such period, the rent allocable to such reoccupied portion, based upon the portion which the rentable area of such reoccupied portion of the Premises bears to the total rentable area of the Premises, shall be
payable by Tenant from the date such business operations commence. 
  
 H.    Signage.
Subject to the provisions of Section 57 below concerning minimum occupancy during the renewal term, Tenant is hereby granted exclusive sign rights on 
  

 
 4 

 
the Building and throughout the Project and may install (or not install) any signs on the Building or in the Project (including the ground floor Building lobby), at Tenant’s sole expense,
that Tenant desires, provided such signs identify Tenant (or with respect to signs not visible from outside the Project, identify Tenant or its products or both) or an assignee or subtenant of Tenant occupying a full floor of the Building. Signs on
the outside of the Building may, unless of the directional or information type not identifying another tenant, only identify the Tenant or an assignee or sublessee of Tenant, but may not, in the event of more than one sublease, identify more than
one sublessee. Landlord shall not allow any other signs on the Building or Project, except as provided herein. The Building and Project shall be known as the “Carnation Building” or such other name as may be selected by Tenant from time to
time. Tenant shall be entitled to sole and exclusive, prominent and appropriate signage, including the Tenant’s logo or other similar name, prominently displayed in the lobby portion of the Building over the directory board, on monuments or
pylon signs in or around the Building, and on the parapet wall on the top of the Building on each side. Tenant shall be permitted to install appropriate signage or logo on the walls of the elevator lobbies and on the entrance doors to all floors
under lease by Tenant. The exact number, location, size, materials, coloring, lettering and lighting shall be in compliance with all governmental regulations, ordinances and laws and shall be consistent and compatible with the Building’s
design, signage and graphics program, or shall be subject to Landlord’s prior approval, which approval shall not be unreasonably withheld or delayed, if no such program has been adopted. Landlord shall not allow any sign to be placed on the
Building or in the Building (except as provided below) or on the Project identifying any person, company or entity other than Tenant. Any such signage will be installed, maintained and removed at Tenant’s expense (Tenant, to pay for the
installation of any and all of its signage, may use a portion of the cash allowance provided by Landlord for Leasehold Improvements). Tenant shall be responsible for the removal of its signs and the cost of repairing any damage to the Building
caused by such removal. No other signs or identity shall be permitted over the main entrances or on the wall behind the security console or on the directory boards. Tenant shall have the right to approve the design and decoration of all elevator
lobbies and the main lobby, which approval shall be subject only to Tenant’s good faith discretion (except that Tenant may not unreasonably withhold consent to the design and decoration of other tenants’ elevator lobbies). Notwithstanding
anything set forth herein to the contrary, Landlord shall have the right 
  

 
 5 

 
without Tenant’s consent to (i) maintain directory boards in the lobby and garage of the Building, (ii) allow tenants occupying at least full-floor space of the Building to have their names
on their floor and in the elevator lobby on which their premises are located, (iii) have directional signs and informational signs throughout the Project which do not identify any other tenant or entity or person (provided, however, (A) Landlord may
install a small unobtrusive sign in the building lobby not exceeding one (1) square foot to identify the lender and the developer, and (B) during construction of the Project, Landlord may place identity signs throughout the Project identifying the
developer, lender, contractor and architect, which signs shall always include the designation “Carnation Building”), and (iv) allow tenants of the Building to have their names on entry doors to their premises. 
  
 I.    Restriction on Leasing. Only as long as Tenant is entitled to its exclusive sign rights on the Building,
Landlord agrees that it will not lease any space to any other tenant for retail use and/or lease space in the Building, or consent to a sublease or an assignment, to any other person or entity which is in direct competition with Tenant, or to any
other person or entity that conducts a business or connotes an image that adversely affects or conflicts with the public and corporate image of Tenant as a “wholesome, family-oriented corporation.” A “wholesome, family-oriented
corporation” is one that promotes a happy, healthy and moral family life, providing a nutritious well-rounded, normal and balanced lifestyle. Provided, however, nothing herein shall preclude Landlord from leasing space, by
way of illustration only, to law firms, accounting firms, financial institutions, executive search firms, brokerage houses, advertising agencies, consulting firms, insurance companies, title companies, health maintenance organizations, employment
agencies, trust companies, non-pornographic publishing companies, architects, engineers and real estate companies, or to any other individual or entity to which Tenant has leased, assigned or subleased space in the Building. Landlord shall give
Tenant three (3) days’ notice of each proposed lease for space in the Building along with a copy of such lease. Tenant shall have the right to approve or disapprove within three (3) days of receipt of such notice all leases which Landlord
desires to enter into, but Tenant may not withhold its approval unless the proposed tenant is not qualified pursuant to the foregoing criteria or unless such proposed tenant would not meet the tests normally imposed by institutional lenders prior to
providing non-disturbance agreements. For the purposes of the preceding 
  

 
 6 

 
sentence only, the term Tenant shall be limited to the Carnation Company, an assignee which assumes the entire Lease, or a subtenant who subleases all of the Premises. 
  
 J.    Special Locks. Notwithstanding anything to the contrary set forth in the Lease, Tenant may designate the
types of locks and keys to be utilized for its Premises. Except for areas which Tenant reasonably designates as security areas, Landlord shall be permitted to make copies of all keys at Tenant’s expense. Landlord shall have access to a master
key to all areas, including security areas, for emergency purposes, subject to reasonable rules imposed by Tenant. 
  
 K.    Building Antennae. Tenant shall have the right, at any time during the term of this Lease, at its sole cost and expense, to use portions, as Tenant reasonably deems necessary, of the roof of the
Building for telecommunications equipment such as antenna and microwave transmissions and receiving equipment (collectively, “antennae”). Tenant shall pay for all costs associated with the antennae, including, without limitation, the costs
of installation, maintenance, engineering, operation, removal and structural changes with respect to the antennae, and the changes, structural or otherwise, to the portion of the roof of the Building attributable to its use. Such use shall be
subject to receipt of all required governmental approvals and Landlord’s reasonable approval with respect to aesthetic compatibility with the Building design. Such use shall not interfere with the Building systems and any helipad. Tenant’s
rights hereunder shall be superior and prior to the rights of any other tenant or third party, but Tenant’s rights hereunder shall not be exclusive. Landlord, without Tenant’s consent, except Tenant’s reasonable consent with respect
to aesthetic compatibility with the Building design, may permit other tenants to have antennae on the portions of the roof not currently needed by Tenant, or not reasonably designated by Tenant for future use, provided that such antennae do not
interfere with the receiving or transmitting of data by Tenant’s antennae. If Tenant desires antennae at the time of the Project Commencement Date, Tenant shall be required to coordinate its design of the antennae and roof HVAC unit
concurrently with Landlord’s preparation of the Final Plans for the Building shell and core, and the installation shall occur during Landlord’s construction of the roof so that delays, structural changes and increased costs will be
avoided. If Tenant fails to so proceed, and if Landlord is actually delayed in obtaining a Temporary Certificate of Occupancy for the Building because of such failure, then such failure shall 
  

 
 7 

 
constitute a Tenant Delay. Otherwise, subject to all the provisions of this paragraph and the other conditions regarding area, costs, and construction, Tenant may cause antennae to be installed
at any time during the duration of this Lease. 
  
 L.    Landlord’s Obligations to
Construct Project. Landlord agrees that it will construct the Project in accordance with Attachment 2 to the Work Letter Agreement, and Landlord and Tenant agree that Tenant shall have the rights set forth in Section 4 of the Lease.

  
 Section 1.    Terms and Definitions. For the purposes of this Lease, the following
terms shall have the following definitions and meanings: 
  

	 	(a)
	 
	Landlord: Eight Hundred North Brand Boulevard, a California Limited Partnership 
 

  

	 	(b)
	 
	Landlord’s Address: 
 

  
 Eight Hundred North Brand Boulevard 
 c/o Lincoln Property Company N.C., Inc. 
 444 South Flower Street, Suite 4270 
 Los Angeles, California 90071 
 Attn: Mr. John Miller 
  
 Copy To:

  
 Eight Hundred North Brand Boulevard 
 c/o Lincoln Property Company N.C., Inc. 
 101 Lincoln Centre Drive 
 Foster City, California 94404 
 Attn: Mr. Ed O’Brien 
  
 Copy To: 
  
 Eight Hundred North Brand Boulevard 
 800 North Brand Boulevard 
 Glendale, California 91203 
 Attn: Building Manager 
  

	 	(c)
	 
	Tenant: Carnation Company, a Delaware Corporation 
 

  

	 	(d)
	 
	Tenant’s Address: 
 

  

 
 8 

  
 Prior to the Commencement Date, copies of all notices and correspondence to
Tenant shall be sent to the addresses set forth below or to such other substituted addresses as Tenant may from time to time designate by notice to Landlord: 
  
 Carnation Company 
 5045 Wilshire Boulevard 
 Los Angeles, California 90036 
 Attention: Legal Department 
  
 copy to: 
  
 Lillick McHose & Charles 
 725 South Figueroa Street, Suite 1100 
 Los Angeles, California 90017-2513 
 Attention: Michael E. Meyer, Esq. 
  
 Following the Commencement Date, copies of all notices and correspondence of Tenant shall be sent to the addresses set forth below or to such other substituted addresses as
Tenant may from time to time designate by notice to Landlord: 
  
 Carnation Company 
 Carnation Building 
 800 North Brand Boulevard 
 Glendale, California 91203 
 Attention: Legal Department 

 
 copy to: 
  
 Lillick McHose & Charles 
 725 South Figueroa Street, Suite 1100 
 Los Angeles, California 90017-2513 
 Attention: Michael E. Meyer, Esq. 
  
             (e)    Building Address: Carnation Building,
800 North Brand Boulevard, Glendale, California 91203—a proposed twenty (20) to twenty-five (25) story office tower and parking garage (“Building”) containing approximately 500,000 rentable square feet, to be located in the City of
Glendale on approximately 180,000 square feet, bounded by Brand Boulevard on the west, Monterey Road on the south, Louise Street on the east and the Verdugo Wash on the north, as more particularly defined in the Project Description attached to the
Work Letter
 

 
 9 

 
Agreement as Attachment 2 and incorporated herein by this reference and the Site Plan attached to this Lease as Exhibit “B” and incorporated herein by this reference.

  
             (f)    Suite Number:
Not applicable. 
  
             (g)    Floor(s) upon which the Premises are located: The initial Premises shall consist of approximately 250,000 rentable square feet located
as follows: 
  
 (i) All rentable square feet in the basement area of Building (“Basement”)
to be constructed by Landlord (the exact amount of Basement space to be leased by Tenant shall be determined as set forth hereinbelow); 
  
 (ii) All of the rentable square feet of the plaza level of the Building (“Plaza Level”) (the exact amount of rentable square feet of the Plaza Level to be constructed by Landlord shall be
determined as set forth hereinbelow; with respect to the Plaza Level of the Building, for the purpose of the computation of rentable square feet in the Plaza Level only, Rentable Square Feet shall be equal to the Usable Square Feet in the
Plaza Level leased by Tenant); and 
  
 (iii) All of the rentable square feet of contiguous, full
floors of the Building (“Upper Office Floors”) starting at the top of the Building and continuing down until the combined square footage of the initial Premises equals approximately 250,000 rentable square feet, inclusive of the Basement,
Plaza Level, and Upper Office Floors. Landlord and Tenant estimate that there will be eight (8) full Upper Office Floors in the initial Premises. 
  
 The Premises shall also include any space added pursuant to Tenant’s exercise of its Hold Space Option (Section 2(a)), Expansion Options (Section 58) and First Right to Lease
Option (Section 59). 
  
 The approximate amount of rentable square feet of the Basement, the approximate amount
of rentable square feet of the Plaza Level, and the total number of full floors of Upper Office Floors to be leased by Tenant shall be agreed upon
 

 
 10 

 
by the parties, in writing, during Landlord’s schematics phase and prior to Landlord’s design development phase of the “Final Plans” (as defined in Section 1.2 of the Work
Letter Agreement); provided, however, that the combined square footage of the initial Premises shall equal approximately 250,000 rentable square feet; provided, further, however, that Tenant may, at such time, round the 250,000 square footage figure
up or down by up to 12,500 rentable square feet so that Tenant includes in its initial Premises only full Upper Office Floors in the Building, all of the rentable square footage of the Plaza Level and all of the rentable square feet in the Basement.
For the purpose of computing the rentable square feet in the Basement, the BOMA standard measurement should apply. 
  
             (h)    Premises: Those certain premises defined in Section 1(g) above and Section 2(a) below. 
  
             (i)    Site: The parcel of real property
defined in Section 2(a) below. 
  
             (j)    Approximate Rentable Square Feet within Premises: 250,000. 
  
             (k)    Term: “Term” shall mean twenty (20) Lease Years and Zero (0)
months, as may be extended pursuant to the Options to Extend set forth in Section 57 of this Lease. The Term is projected to commence on October 1, 1990. The Term of the Lease and Tenant’s obligation to pay Annual Basic Rent shall commence on
the Commencement Date, as defined below, and shall terminate twenty (20) Lease Years after the Commencement Date, subject to the Options to Extend. Notwithstanding the foregoing, if Tenant accepts and occupies all or any portion of its Premises for
the purpose of conducting its business operations therefrom prior to the Commencement Date, as defined below, then such space so occupied shall be deemed “substantially completed”, as defined below, and Tenant’s obligations to pay
Annual Basic Rent and perform its other obligations under the Lease with respect to such space only shall commence on the date of occupancy of such space with the Commencement Date for the Lease to be determined in accordance with Section 1(p).

  
             (l)    Building
Standard Work: All initial tenant improvements in the Premises not to exceed an average of $27.50 per rentable square foot. “Building Standard Work” is sometimes referred to as “Building Standard
Improvements”. 
  

 
 11 

  
             (m)    Building Nonstandard Work: All initial tenant improvements in the Premises in excess of an average of $27.50 per rentable square foot.
“Building Nonstandard Work” is sometimes referred to as “Building Nonstandard Improvements”. 
  
             (n)    Aggregate Improvements: The aggregate of the Building Standard Work and the Building Nonstandard Work. “Aggregate
Improvements” is sometimes referred to as “Leasehold Improvements” and/or “Tenant Building Work”. 
  
             (o)    Estimated Commencement Date: October 1, 1990. 
  
             (p)    Commencement Date: The Commencement Date is anticipated to be October 1, 1990. However, the actual
Commencement Date shall be determined as set forth below. 
  
             Landlord and Tenant agree to cooperate to cause the Final Plans for the Building to be prepared as soon as reasonably possible and in accordance with Attachment
2 to the Work Letter Agreement. Landlord agrees to cause the Building core and shell (the “Base Building”) and the other improvements to be constructed by Landlord on the Site as described on Attachment 2 (collectively, the
“Project”) to be completed in accordance with Attachment 2 and the schedule (as may be adjusted from time to time by the mutual agreement of the parties) set forth on Attachment 3 to the Work Letter Agreement executed concurrently with
this Lease. 
  
             Landlord shall deliver to
Tenant the Premises in four Packages. The Packages are as follows: 
  
 Package 1 shall consist of (i) all of the
rentable square feet in the Basement (the exact amount to be determined pursuant to Section 1(g) above) and (ii) all of the rentable square feet of the Plaza Level. 
  
 Package 2 shall consist of the lowest three (3) full floors of the Upper Office Floors plus any full Floor added pursuant to the Hold Space Option exercised by Tenant
pursuant to Section 2(a) below. 
  
 Package 3 shall consist of the next highest three (3) floors of the Upper Office
Floors, plus or minus one (1) full floor to account for
 

 
 12 

 
any adjustment as set forth in Section 1(g) above. 
  
 Package
4 shall consist of the remaining floors of the Upper Office Floors, inclusive of the top floors. 
  
 Package 1 shall
not be deemed to be delivered until Package 1 is in the condition described on Attachment 1 to the Work Letter Agreement. 
  
 Package 2 shall not be deemed to be delivered until the later of (a) 50 days after Package 1 was deemed to be delivered, or (b) Package 2 is in the condition described on Attachment 1 to the Work Letter Agreement. 

 
 Package 3 shall not be deemed to be delivered until the later of (a) 100 days after Package 1 was deemed delivered, or (b) 50
days after Package 2 was deemed delivered, or (c) Package 3 is in the condition described on Attachment 1 to the Work Letter Agreement. 
  
 Package 4 shall not be deemed to be delivered until the later of (a) 150 days after Package 1 was deemed delivered, or (b) 100 days after Package 2 was deemed delivered, or (c) 50 days after Package 3 was deemed delivered,
or (d) Package 4 is in the condition described in Attachment 1 to the Work Letter Agreement. 
  
 The Commencement
Date for the Term and Tenant’s obligation to pay rent under the Lease for the Premises shall commence on the earlier of the date which is: 
  
 (i) The date Tenant commences business operation from all of the Premises. (If Tenant commences business operation from part of the Premises prior to the Commencement Date, Tenant shall pay rent for
each rentable square foot from which Tenant is conducting business prior to the Commencement Date at the rate of six and eighty-five hundredths cents ($0.0685) per rentable square foot per day for the ground floor and office floors and at the rate
of five and forty-eight hundredths cents ($0.0548) per rentable square foot per day for that portion of the Premises located in the basement). 
  

 
 13 

 (ii) The later of (a) the date which is 150 days after Package 4 is deemed delivered, which date will be
extended for each day Tenant is actually delayed in obtaining a Temporary Certificate of Occupancy (“TCO”) or the equivalent of a TCO for all of the Premises because of a Landlord Delay or a Force Majeure Delay, as defined below, or will
be accelerated for each day Landlord is delayed in obtaining the TCO or delivering Package 4 because of a Tenant Delay, as defined below, or (b) the earlier of the date the Project is Substantially Completed and in the condition described in
Attachment 2 to the Work Letter Agreement and Landlord has obtained a TCO, or its equivalent (“equivalent” shall hereinafter mean a document which will allow the Tenant to have occupancy of, and conduct its business operations from, the
Building), for the Project, or the date the Project would have been Substantially Completed and in the condition described in Attachment 2 to the Work Letter Agreement, and by which date Landlord would have obtained a TCO, or its equivalent, for the
Project except for Tenant’s construction of its Leasehold Improvements or for Tenant Delays. 
  
 Tenant will
have uninterrupted (not including minor interruptions of less than one (1) hour) reasonable access to each package of the Premises deemed delivered and to the Building, lobby and construction parking facilities (if and to the extent they exist), to
construct its “Aggregate Improvements”. The final 150-day period (“Final Period”) following the date Package 4 is deemed delivered will be extended one day for each day Tenant is actually delayed in constructing or designing its
Leasehold Improvements due to “Landlord Delays” and “Force Majeure Delays”, as defined below. “Landlord Delays”, for the purposes of the Lease, shall mean any actual delay in completion of the Aggregate Improvements
caused in whole or in substantial part by any act or omission of Landlord in performing its obligations under the Lease. Landlord Delays shall include: (i) delays in the giving of authorizations or approvals or disapprovals by Landlord; (ii) delays
caused by Landlord’s giving Tenant incorrect or incomplete Final Plans or by Landlord making changes to the Final Plans (other than changes requested by Tenant) which affect construction of the Aggregate Improvements in the Premises; (iii)
delays due to the acts or failures to act,
 

 
 14 

 
whether willful, negligent or otherwise, of Landlord, its agents or contractors, only if such acts or failures to act relate to the construction of the Aggregate Improvements; (iv) delays due to
the interference of Landlord, its agents or contractors with the construction of the Aggregate Improvements, or the failure or refusal to permit Tenant, its agents and contractors reasonable access to and reasonable use of the Building or any
Building facilities or services (including reasonable access to loading areas and hoists) in accordance with Landlord’s construction schedule, and which access and use are reasonably required for the performance of the construction of the
Aggregate Improvements; or (v) delays due to failure of the Landlord to provide Tenant with a factually correct five (5) business day notice for each Package as required by Attachment 1 to the Work Letter. Such notice will be deemed correct unless
and until Tenant sends Landlord a notice objecting to the condition of the Package, whereupon a Landlord Delay will be deemed to exist (if in fact the Package was not in the required condition) from the date Landlord received such notice until the
date Landlord placed the Package into the required condition and delivers a factually correct two (2) business day notice that the condition complained of was remedied. Unless and until Tenant sends such notice, each Package shall be deemed to be in
the condition required by Attachment 1 to the Work Letter. 
  
 “Force Majeure Delays” as used in the Lease,
shall mean and refer to a period of delay or delays encountered by Landlord affecting the work of construction undertaken by Landlord, including the Project and the work described on Attachment 1, or a period of delay or delays encountered by Tenant
affecting the work of construction of the Aggregate Improvements, because of delays due to: fire, earthquake, abnormal rains or other acts of God, acts of public enemy, rioting, insurrection, strikes or boycotts, shortages of labor or materials for
which no reasonable substitute exists, excess time in obtaining EIR’s and/or governmental permits or approvals beyond the normal time therefor, or any other cause beyond the reasonable control of Landlord and/or Tenant, as the case may be. The
parties hereto agree to execute and acknowledge an Amendment No. 1 to this Lease, in the form of Exhibit “D” attached to this Lease, setting forth the date of commencement of this Lease and the termination date, but this Lease shall
not be affected should either party fail or refuse to execute such Amendment. No Tenant Delay (as defined below) or Landlord Delay shall be deemed to occur unless the party claiming the delay has provided notice, in compliance with the Lease, to the
other party specifying that a Landlord Delay or
 

 
 15 

 
Tenant Delay, as applicable, will be deemed to have occurred because of a specified action or inaction on the part of the party receiving the notice. If such action or inaction is not cured by
the party receiving such notice within one (1) business day of receipt of such notice. (“Count Day”), and if such action actually caused a delay, then the delay as set forth in such notice shall be deemed to have occurred commencing as of
the Count Day and continuing for the number of days the action or inaction claimed by the party in such notice actually and directly causes a delay. 
  
 “Tenant Delays” as used herein shall mean any actual delay in completion of the work required to be performed by Landlord hereunder, including, but not limited to, substantially completing
the Project, delivering Package(s) in the condition described on Attachment 1 to the Work Letter Agreement, and obtaining a TCO or its equivalent for the Project, caused in whole or in substantial part by any act or omission of Tenant in performing
its obligations under the Lease. Tenant Delays shall include (a) the failure by Tenant to timely provide written approval (where such approval is required and has not yet been given by Tenant) of the design of the Project within thirty (30) days
after Landlord’s delivery to Tenant of a written request for such approval; (b) the failure by Tenant to pay to Landlord, within thirty (30) days after invoice, for any costs for work required to be paid by Tenant, including work described in
any change order to the Final Plans, which work is agreed to by Landlord and Tenant and is to be paid for by Tenant and not by Landlord; (c) the selection by Tenant of so-called “long lead time items” for inclusion in the Base Building,
whether as to materials or installations, that extend beyond the construction period for the Base Building work, except for any such items which are specified in the Final Plans (however, such long lead item selection or specification shall
constitute Force Majeure Delays); (d) the modification by Tenant of the Final Plans after final approval thereof; (e) delays due to the interference of Tenant, its employees, agents or contractors with the construction of the Project and Packages;
or (f) delays due to the acts or failures to act, whether wilfull, negligent or otherwise, of Tenant, its agents or contractors, if such acts or failures to act relate to the construction of the Project or Packages. The parties recognize that
Tenant’s selection of a contractor, other than the Landlord’s contractor, to construct its Aggregate Improvements and the construction of the Aggregate Improvements by Tenant simultaneously with the construction of the Building will extend
the time of construction of the Building, but the 

 
 16 

 
parties agree that such conduct, in and of itself, shall not constitute a Tenant Delay. 
  
 “Substantially Completed” with respect to the Project shall be deemed to have occurred when the Project has been substantially completed in accordance with Attachment 2 to the work Letter
Agreement. In addition to the provisions set forth above and in Attachment 2 to the Work Letter Agreement, the Commencement Date shall not occur until Landlord shall have Substantially Completed the Project and provided clean, continuous and
unobstructed access to (i) the Building and Parking and/or garage facilities sufficient to accommodate the Tenant’s parking requirements (employees and visitors), (ii) all entrances to the Building, including lobby and service areas, (iii) all
vertical transportation systems, and (iv) all systems and services to be furnished by Landlord necessary for Tenant’s use of the Building and Parking and/or garage facilities, pursuant to the terms and conditions of the Lease and Work Letter
Agreement; provided, however, that if Landlord is delayed in Substantially Completing the Project and providing such access as a result of Tenant Delays, then the Project will be deemed Substantially Completed as of the date the Project would have
been substantially completed and such access would have been provided but for such Tenant Delays. 
  
             (q)    Annual Basic Rent: 
  
 Years 1 through 10—$25/rentable square foot/year; $2.0833/rentable square foot/month 
  
 Years 11 through 15—$30/rentable square foot/year; $2.50/rentable square foot/month 
  
 Years 16
through 20—$35/rentable square foot/year; $2.9167/rentable square foot/month. 
  
     With
respect to the portion of the Premises located in the Basement, the above-stated rates shall be reduced by twenty percent (20%). 
  
             (r)    Operating Expenses Allowance: The Operating Expense Allowance shall be determined by a Base Year,
which shall be the first full twelve (12) months following the Commencement Date. Operating Expenses per square foot for the Base Year shall be grossed up in accordance with generally accepted accounting practices to reflect what Operating
Expenses would have been had the Building been fully leased and occupied for the entire Base Year and fully assessed for tax
 

 
 17 

 
purposes as a leased and occupied Building during the Base Year and crossed up to reflect all costs for service contracts entered into in connection with, and for the protection of,
the Building. Real Property taxes are to be projected during the Base Year as if fully assessed utilizing the methodology of the Los Angeles County Tax Collector. After the Base Year, Operating Expenses shall be payable in an estimated amount
reasonably set by the Landlord and shall be adjusted at the end of each twelve (12) month calendar period using the Base Year as determined in accordance with this section. Any overpayment or underpayment shall be reconciled at such time, or after
the audit provided for in Section 6 of the Lease. The total grossed-up Operating Expenses for the Base year shall be divided by the rentable square feet in the Building, and the amount so determined shall be the Operating Expense Allowance
per rentable square foot. 
  
             (s)    Tenant’s Percentage Share: The percentage shall be determined by dividing the rentable square feet in the Premises
from time to time by the rentable square feet in the Building. 
  
             (t)    Security Deposit: None. 
  
             (u)    Permitted Use: General business office use and other legally permitted non-retail uses compatible with a first-class
headquarters office building. Provided, however, notwithstanding the foregoing, Tenant may utilize the Plaza Level portion of the Premises for retail sales, as provided by Section 8. 
  
             (v)    Broker: Cushman Realty Corporation. 
  
             (w)    Landlord’s Construction
Representatives: Nick Sica, Telephone: (415) 986-3742, and Cameron Farrer, Telephone: (213) 688-7438. 
  
             (x)    Tenant’s Construction Representatives: Gilbert Jordan, Telephone: (213) 683-1190, Roger Anderson, Telephone: (213) 473-5358, and
Richard R. Cheney, Telephone: (213) 930-5797. 
  
             (y)    Parking: (See Section 41)—Tenant is to receive three and one-half (3.5) parking privileges per 1,000 rentable square feet
leased up to 250,000 rentable square feet and three (3) parking privileges per 1,000 rentable square feet for all space leased in excess of 250,000 rentable square feet. 

 
 18 

  
             (z)    Riders: No Riders are attached to this Lease. 
  
             (aa)    Lease Year: A period of twelve (12) consecutive months, the first such period commencing on the
Commencement Date and consecutive periods beginning on each consecutive anniversary thereof. 
  
             (bb)    Exhibits: A through J, inclusive, which Exhibits are attached to this Lease and are incorporated herein by this reference.

  
 Section 2.    Premises and Common Areas Leased. 
  
             (a)    Landlord hereby leases to Tenant and
Tenant hereby leases from Landlord, the Premises described in Section 1(g). After the actual size and location of the Premises are determined by the parties pursuant to Section 1(g) and this Section 2(a) with respect to the Hold Space, and after the
Commencement Date has occurred, an Exhibit “A”, setting forth the Premises, shall be added pursuant to Amendment No. 1. The Premises are located in the Building at the address designated in Section l(e) above, located on the parcel
of real property (the “Site”) outlined on the Site Plan attached as Exhibit “B” and incorporated herein by this reference, and improved or to be improved with the Aggregate Improvements described in the Work Letter
Agreement, a copy of which is attached as Exhibit “C” and incorporated herein by this reference, said Premises being agreed, for the purposes of this Lease, to have approximately the number of rentable square feet as
designated in Section 1(j) subject to adjustment pursuant to the provisions of Section 1(g) and this Section 2(a), and being situated on the floor(s) described in Section 1(g) above, including the space described as Packages 1, 2, 3 and 4 in Section
1(p). 
  
 The parties hereto agree that said letting and hiring is upon and subject to the terms, covenants and
conditions herein set forth, and Tenant covenants as a material part of the consideration for this Lease to keep and perform each and all of said terms, covenants and conditions by it to be kept and performed and that this Lease is made upon the
condition of such performance. Landlord covenants, as a material part of the consideration for this Lease, to keep and perform each and all of said terms, covenants and conditions for which Landlord is liable and that this Lease is made upon the
condition of such performance. 

 
 19 

  
 Landlord represents that all rentable areas of each floor and of the entire
Building will be calculated in accordance with the provisions of ANSI Z65.1-1980 (Building Owners and Managers Association) (the “BOMA Standard”), more particularly set forth in Exhibit “G” attached hereto and incorporated
herein by this reference. The initial rentable area shall be determined by Landlord’s measurements from the Final Plans for the Base Building at the time the Final Plans are approved by the parties and shall be subject to a one-time adjustment
as set forth hereinbelow in accordance with Tenant’s field check to be performed within ninety (90) days (“Measurement Period”) after Landlord delivers Package 4 to Tenant pursuant to Section 1(g) above. If Tenant’s field check
within the Measurement Period results in a different measurement of the rentable square footage of the Building and Premises, and if Tenant and Landlord shall not agree as to the exact measurements after good faith deliberations, then such
measurements shall be submitted to arbitration using the procedure set forth in Section 5 with the necessary modifications to reflect an arbitration as to the square footage. Landlord and Tenant agree to cooperate in good faith to cause the loss
factor in the Building not to exceed ten percent (10%). In the event that the subsequent remeasurement of the Building or the Premises resulting from Tenant’s field check within the Measurement Period, as finally agreed upon by Landlord and
Tenant or as determined after arbitration, indicates that the square footage measurement prepared by Landlord produces a square footage number in excess of the square footage number which would have resulted had the BOMA Standard been properly
utilized, any payments due to Landlord from Tenant based upon the amount of square feet contained in the Premises or Building shall be proportionately and prospectively reduced or increased, to reflect the actual number of square feet, as properly
remeasured under the BOMA Standard. If such remeasurement produces a square footage number greater or less than the square footage number which would have resulted had the BOMA Standard been properly utilized, any payments due from Tenant to
Landlord based upon the amount of square feet contained in the Premises or Building shall be proportionately, retroactively and prospectively increased or decreased to reflect the actual number of square feet, as properly remeasured under the BOMA
Standard. 
  
 Tenant shall have the option (“Hold Space Option”) by notice to Landlord given prior to
October 1, 1989 to add one or two full floors contiguous to the portion of the Premises located on the upper floors of the Building (“Hold Space”) on the same terms and conditions, including, Annual Basic Rent, as
 

 
 20 

 
set forth herein, subject only to such Hold Space being added to Package 2. 
  
             (b)    Tenant shall have the nonexclusive right to use in common with other tenants in the Building and subject to the Rules and Regulations
referred to in Section 31 below, the following areas (“Common Areas”) appurtenant to the Premises: 
  
 (i)    The common entrances, lobbies, restrooms, elevators, stairways and accessways, loading docks, ramps, drives and platforms, and any passageways and serviceways thereto, and the common pipes, conduits, wires
and appurtenant equipment serving the Premises; 
  
 (ii)    Parking areas
(subject to the provisions of Section 41 hereinbelow), loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways and landscaped areas appurtenant to the Building. 
  
             (c)    Landlord reserves the right from time
to time without unreasonable interference with Tenant’s use, with prior written notice from Landlord to Tenant and upon receipt of consent from Tenant, which consent shall not be unreasonably withheld or delayed: 
  
 (i)    To install, use, maintain, repair and replace pipes, ducts, conduits, wires and appurtenant
meters and equipment for service to other parts of the Building above the ceiling surfaces, below the floor surfaces, within the walls and in the central core areas, and to relocate any pipes, ducts, conduits, wires, and appurtenant meters
and equipment included in the Premises which are located in the Premises or located elsewhere outside the Premises, and to expand the Building; 
  
 (ii)    To make changes to the Common Areas, including, without limitation, changes in the location, size, shape and number of driveways, entrances, loading and unloading areas,
ingress, egress, direction of traffic, landscaped areas and walkways and, subject to Section 41, parking spaces and parking areas, so long as such change to the Common Area does not adversely affect or adversely limit the amount of usable square
footage in the Premises or adversely affect Tenant’s use of the Premises; 

 
 21 

  
 (iii)    To close temporarily any of the
Common Areas for maintenance purposes so long as reasonable access to the Premises remains available; 
  
 (iv)    To use the Common Areas while engaged in making additional improvements, repairs or alterations to the Building, or any portion thereof; 
  
 (v)    To do and perform such other acts and make such other changes in, to or with respect to the Site, Common Areas and Building as
Landlord may, in the exercise of sound business judgment, deem to be appropriate. 
  
             Provided, however, no notice need be sent or consent be obtained where an emergency exists which could create a danger to the safety of people and/or property,
or if the action by the Landlord is of a diminimus nature. 
  
 Section 3.    Term. The
term of this Lease shall be for the period designated in Section 1(k) commencing on the Commencement Date, and ending on the expiration of such period, unless the term hereby demised shall be sooner terminated as hereinafter provided or extended by
exercise of the renewal option. The Commencement Date and the date upon which the term of this Lease shall end shall be determined in accordance with the provisions of Section 1(p). 
  
 Section 4.    Possession. Landlord agrees to use commercially reasonable efforts to commence construction of the Building on or before September
1, 1988. If on or before March 31, 1989, any of the requirements of Section 10. 2(e) of the Limited Partnership Agreement of Eight Hundred North Brand Boulevard, a California Limited Partnership, dated as of December 22, 1987, shall not have been
satisfied, then either party may terminate this Lease by written notice to the other party at any time after such date, provided such party also terminates said Partnership Agreement, with neither party thereafter having liability to the other
except as provided in said Partnership Agreement or in the following sentence. If Landlord has not commenced construction of the Building by March 31, 1989, Tenant may terminate this Lease, upon ten (10) days’ written notice to Landlord, with
neither party having any liability to the other, except that if such failure to commence construction resulted solely from the failure of Landlord to utilize commercially reasonable best efforts, Tenant shall have the right to recover from Landlord
damages as provided by law exclusive of, and excluding, consequential damages. In the
 

 
 22 

 
event Landlord has not delivered possession of Packages 1 through 4 to Tenant in the condition described in Attachment 1 to the Work Letter Agreement by that date (the “Liquidated Damages
Date”) which is the later of (a) July 1, 1991, or (b) twenty-seven (27) months after Landlord has commenced construction of the Project, then Tenant shall be entitled to receive Two Hundred Thousand Dollars ($200,000) for each month after the
Liquidated Damages Date that possession of Packages 1 through 4 are not delivered to Tenant in such condition, with the parties agreeing that such sum shall constitute the full, agreed liquidated damages for such late delivery. For the purposes of
this Section 4 only, any damages required to be paid shall be paid by LPC. All dates set forth in this Section 4 shall be extended for Force Majeure Delays and Tenant Delays, except that the March 31, 1989, date for purposes of commencing
construction, shall only be extended for Tenant Delays (for the purposes of this Section 4 only, the term “Tenant Delays” shall also include delays caused by Carnation Company as a limited partner of the Eight Hundred North Brand Boulevard
limited partnership). The damages of Two Hundred Thousand Dollars ($200,000) per month constitute liquidated damages which the Landlord and Tenant agree to accept as fair, reasonable and stipulated damages and as the damages presumed to be sustained
from the failure to complete on a timely basis. The parties understand and agree that because of the nature of the situation, it would be impractical or extremely difficult to fix the actual damages. Based on their own evaluation, and based on the
advice of their respective lawyers, the parties acknowledge that damages of Two Hundred Thousand Dollars ($200,000) per month is a reasonable estimate of the actual damages that would likely be suffered by Tenant. 
  
 Section 5.    Annual Basic Rent. 
  
                         (a)    Payment of Rent. Tenant agrees to pay Landlord as
Annual Basic Rent for the Premises the Annual Basic Rent designated in Section l(q) (subject to adjustment as hereinafter provided) in twelve (12) equal monthly installments, (“Monthly Basic Rent”) each in advance on the first day of each
and every calendar month during said term. In the event the term of this Lease commences or ends on a day other than the first day of a calendar month, then the rental for such periods shall be prorated in the proportion that the number of days this
Lease is in effect during such periods bears to thirty (30), and such rental shall be paid at the commencement of such periods. In addition to said Annual Basic Rent, Tenant agrees to pay the amount of the rental adjustments as and when hereinafter
provided in this Lease. Said Annual
 

 
 23 

 
Basic Rent, additional rent, and rental adjustments shall be paid to Landlord, without any prior demand therefor and without any deduction or offset whatsoever, except as otherwise specifically
provided in this Lease, in lawful money of the United States of America, which shall be legal tender at the time of payment, at the address of Landlord designated in Section 1(b) or to such other person or at such other place as Landlord may from
time to time designate in writing. Further, all charges to be paid by Tenant hereunder, including, without limitation, payments for real property taxes, insurance, repairs, and parking shall be considered additional rent for the purposes of this
Lease, and the word “rent” in this Lease shall include such additional rent unless the context specifically states or clearly implies that only the Annual Basic Rent is referenced. 
  
                         (b)    Rent Increases and Determinations. The Annual Basic
Rent shall be adjusted on the tenth and fifteenth anniversaries of the Commencement Date to the amounts set forth in Section 1(q) and on the date which is the first date of each renewal term, if any of the Options to Extend set
forth in Section 57 are exercised. Annual Basic Rent for any Expansion Space, if any of the Options to Expand set forth in Section 58 are exercised, shall be determined as set forth in this Section 5. The Annual Basic Rent for Option Space and
during the renewal terms shall be the Fair Market Rental Rate for the portion (or if appropriate, all) of the Premises which is subject to the expansion or renewal options. The term “Fair Market Rental Rate” for the purposes of this
Lease, shall mean the annual amount per rentable square foot that Landlord has accepted in current transactions in the Building, or, if there are not a sufficient number of current comparable transactions in the Building, then what a willing,
comparable, new non-renewal, non-equity tenant would pay, and a willing, comparable landlord of a comparable office building in the vicinity of the Building would accept, at arm’s length, giving appropriate consideration to the annual rental
rate per rentable square foot, escalation (including type, base year and stop) and abatement provisions reflecting free rent and/or no rent during the period of construction, length of the lease term, size and location of premises being
leased, building standard work letter and/or tenant improvement allowances, if any, the age, quality and layout of the improvements and the extent to which they can be utilized by Carnation Company or its successor occupant (but, with respect to the
renewals, ignoring the fact that Carnation Company or its successor occupant is the renewal Tenant and can use the space “as is”, but taking into account the value of the age, quality and
 

 
 24 

 
layout of the space to a prospective different tenant who would use the space), and other generally applicable conditions of tenancy for any single floor for the space in question so that this
Tenant will obtain the same rent and other benefits that Landlord would otherwise give to any comparable prospective tenant. If, for example, after applying the criteria set forth above, comparable leases provide a new tenant with comparable space
at Forty Dollars ($40) per rentable square foot, with a Ten Dollar ($10) base amount (stop), one (1) month at no rent to construct improvements, four (4) months’ free rent, Fifty Dollars ($50) per usable square foot tenant improvement
allowance, a lease takeover obligation worth $10, 000 and certain other generally applicable economic terms, the Fair Market Rental Rate for Tenant shall not be Forty Dollars ($40) per rentable square foot only, but shall be the equivalent of Forty
Dollars ($40) per rentable square foot, a Ten Dollar ($10) base amount (stop), one (1) month at no rent to construct improvements, or in 1ieu of constructing improvements, one (1) month of additional free rent, four (4) months’ free rent, Fifty
Dollars ($50) per usable square foot tenant improvement allowance or rent credit in lieu of such allowance, to the extent construction is not undertaken, $10,000 cash payment in lieu of a lease takeover (however, if a lease takeover is a benefit to
the Landlord rather than a detriment, the amount of such benefit shall be credited to Landlord for the purpose of computing the Fair Market Rental Rate) and such other generally applicable economic terms (provided, however, no reduction or increase
in rent shall be granted for the presence or absence of a brokerage commission). The arbitrators shall not consider the value of the sign identity and rights of control to Tenant. With respect to renewals, Landlord may give Tenant additional
rent credits rather than out-of-pocket cash payments for an improvement allowance or lease takeover. Landlord shall determine the Fair Market Rental Rate by using its good faith judgment. Landlord shall use its best efforts to provide written notice
of such amount within thirty (30) days (but in no event later than sixty (60) days) after Tenant provides the notice to Landlord requiring the calculation of Fair Market Rental Rate. Tenant shall have fifteen (15) days (the “Tenant’s
Review Period”) after receipt of Landlord’s notice of the new rental within which to accept such rental or to reasonably object thereto in writing. In the event Tenant objects, Landlord and Tenant shall attempt to agree upon such Fair
Market Rental Rate, using their best good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (15) days following Tenant’s Review Period (the “Outside Agreement Date”), then each party’s determination
shall be submitted to arbitration in accordance with subparagraphs (i) 
  

 
 25 

 
through (viii) below. Failure of Tenant to so elect in writing within such period shall conclusively be deemed its approval of the new rental determined by Landlord. In the event that Landlord
fails to timely generate the initial written notice of Landlord’s opinion of the Fair Market Rental Rate which triggers the negotiation period of this paragraph, then Tenant may commence such negotiations by providing the initial notice, in
which event Landlord shall have fifteen (15) days (“Landlord’s Review Period”) after receipt of Tenant’s notice of the new rental within which to accept such rental or to reasonably object thereto in writing. In the event
Landlord so objects, Landlord and Tenant shall attempt in good faith to agree upon such Fair Market Rental Rate, using their best good faith efforts. If Landlord and Tenant fail to reach agreement within fifteen (15) days following Landlord’s
Review Period (which shall be, in such event, the “Outside Agreement Date” in lieu of the above definition of such date), then each party’s determination shall be submitted to arbitration in accordance with subparagraphs (i) through
(viii) below. Failure of Landlord to so elect in writing within such period shall conclusively be deemed its approval of the new rental determined by Tenant. 
  
 (i)    Landlord and Tenant shall each appoint one arbitrator who shall by profession be a real estate professional who shall have been
active over the five (5) year period ending on the date of such appointment in the leasing of commercial high-rise properties in the Los Angeles area. [INTENTIONALLY DELETED] Each such arbitrator shall be appointed within fifteen (15) days after the
Outside Agreement Date. 
  
 (ii)    The two arbitrators so appointed shall,
within fifteen (15) days of the date of the appointment of the last appointed arbitrator, agree upon and appoint a third arbitrator who shall be a real estate professional, who shall be qualified under the same criteria set forth in subparagraph (i)
for qualification of the initial two arbitrators. 
  
 (iii)    The three
arbitrators shall, within thirty (30) days of the appointment of the third arbitrator, 

 
 26 

 
reach a decision as to Fair Market Rental Rate, and shall notify Landlord and Tenant thereof. 
  
 (iv)    The decision of the majority of the three arbitrators shall be binding upon Landlord and Tenant. 
  
 (v)    If either Landlord or Tenant fails to appoint an arbitrator within fifteen (15) days after the
Outside Agreement Date, the arbitrator appointed by one of them shall reach a decision, notify Landlord and Tenant thereof, and such arbitrator’s decision shall be binding upon Landlord and Tenant. 
  
 (vi)    If the two arbitrators fail to agree upon and appoint a third arbitrator, then the
appointment of the third arbitrator shall be dismissed, and the matter to be decided shall be forthwith submitted to formal arbitration under the provisions of the American Arbitration Association, but subject to the instructions set forth in this
Paragraph. 
  
 (vii)    The cost of arbitration shall be paid by Landlord and
Tenant equally. 
  
 (viii)    Any formal arbitration conducted pursuant to
subparagraph 5(b)(vi) above shall be in accordance with the Commercial Rules of the American Arbitration Association, and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. 

 
 Section 6.    Rental Adjustment. 
  
                         (a)    For the purposes of this Section 6(a), the following terms are
defined as follows: 
  
 (i)    Tenant’s Percentage Share: Tenant’s
Percentage Share shall mean that portion of the total rentable area of the Building occupied by Tenant as set forth as a percentage in Section 1(s) above. 
  
 (ii)    Operating Expenses Allowance: Operating Expenses Allowance shall mean that portion of Tenant’s Percentage Share of the
Operating Expenses which Landlord has included in the Annual Basic Rent and which amount is set forth in Section 1(r) above. 

 
 27 

  
 (iii)    Operating Expenses: Operating
Expenses shall consist of all direct costs of operation and maintenance of the Building, the Common Areas and the Site as determined by standard accounting practices, calculated assuming the Building is fully occupied, including the following costs
by way of illustration, but not limitation: real property taxes and assessments and any taxes or assessments hereafter imposed in lieu thereof; rent taxes, gross receipt taxes (whether assessed against Landlord or assessed against Tenant and
collected by Landlord, or both); water and sewer charges; the net cost and expense of insurance for which Landlord is responsible hereunder or which Landlord or any first mortgagee with a lien affecting the Premises reasonably deems necessary in
connection with the operation of the Building; utilities; janitorial services; security; labor; parking expenses, utilities surcharges, or any other costs levied, assessed or imposed by, or at the direction of, or resulting from statutes or
regulations or interpretations thereof, promulgated by any federal, state, regional, municipal or local government authority in connection with the use or occupancy of the Building or the Premises or the parking facilities serving the Building or
the Premises; the cost (amortized over such reasonable period as Landlord shall determine together with interest at the maximum rate allowed by law on the unamortized balance) of (a) any capital improvements made to the Building by Landlord
after the first year of the Term of the Lease that reduce other Operating Expenses, or made to the Building by Landlord after the date of the Lease that are required under any governmental law or regulation that was not applicable to the Building at
the time it was constructed, or (b) replacement of any Building equipment needed to operate the Building at the same quality levels as prior to the replacement; costs incurred in the management of the Building, if any (including supplies, wages and
salaries of employees used in the management, operation and maintenance of the Building, and payroll taxes and similar governmental charges with respect thereto); Building management office rental, if said office is located in the Building; a
management fee (subject to the provisions of Section 61); air-conditioning; waste disposal; heating; ventilating; elevator maintenance; supplies;
 

 
 28 

 
materials; equipment; tools; repair and maintenance of the structural portions of the Building, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or
furnished by Landlord and maintenance, costs and upkeep of all parking and common areas; rental of personal property used in maintenance; costs and expenses of gardening and landscaping; maintenance of signs (other than Tenant’s signs);
personal property taxes levied on or attributable to personal property used in connection with the entire Building, including the Common Areas; reasonable audit or verification fees; and costs and expenses of repairs, resurfacing, repairing,
maintenance, painting, lighting, cleaning, refuse removal, security and similar items, including appropriate reserves. Operating Expenses shall not include depreciation on the Building or equipment therein, Landlord’s executive salaries, real
estate brokers’ or leasing agents’ commissions and other costs related to leasing the Building; interest expense on Building financing; amortization of cost of tenant improvements in the Building; ground rent; income and franchise taxes;
dividends; and attorneys’ fees and expenses which are not related to the operation of the Building. 
  
                         As used herein, the term “real property taxes” shall include any form of
assessment, license fee, license tax, business license fee, commercial rental tax, levy, charge, penalty, tax or similar imposition, imposed by any authority having the direct power to tax, including any city, county, state or federal government, or
any school, agricultural, lighting, drainage or other improvement or special assessment district thereof, as against any legal or equitable interest of Landlord in the Premises, including, but not limited to, the following: 
  
             (A)    any tax on
Landlord’s “right” to rent or “right” to other income from the Premises or as against Landlord’s business of leasing the Premises; 
  
             (B)    any assessment, tax, fee, levy or charge in substitution,
partially or totally, of any assessment, tax, fee, levy or charge previously included within the definition of real estate tax, it being acknowledged by Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California in
the June 1978 election and that assessments, taxes, fees, levies and 

 
 29 

 
charges may be imposed by governmental agencies for such services as fire protection, street, sidewalk and road maintenance, refuse removal and for other governmental services formerly provided
without charge to property owners or occupants. It is the intention of Tenant and Landlord that all such new and increased assessments, taxes, fees, levies and charges be included within the definition of “real property taxes” for the
purposes of this Lease; 
  
             (C)    any assessment, tax, fee, levy or charge allocable to or measured by the area of the Premises or the rent payable hereunder,
including, without limitation, any gross income tax or excise tax levied by the state, city or federal government, or any political subdivision thereof, with respect to the receipt of such rent, or upon or with respect to the possession, leasing,
operating, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises, or any portion thereof; 
  
             (D)    any assessment, tax, fee, levy or charge upon this transaction or any document to which Tenant is a
party, creating or transferring an interest or an estate in the Premises; 
  
             (E)    any assessment, tax, fee, levy or charge by any governmental agency related to any transportation plan, fund or system instituted
within the geographic area of which the Building is a part; or 
  
             (F)    reasonable legal and other professional fees, costs and disbursements incurred in connection with proceedings to contest, determine or
reduce real property taxes. 
  
                         Notwithstanding any provision of this Section 6(a) expressed or implied to the contrary,
“real property taxes” shall not include Landlord’s federal or state income, franchise, inheritance or estate taxes. 
  
                         Notwithstanding anything to the contrary in the definition of Operating
Expenses, Operating Expenses shall not include the following: 
  
 (i)    Any
ground lease rental; 

 
 30 

  
 (ii)    Capital expenditures required by
Landlord’s failure to comply with laws enacted on or before the date the Building’s temporary certificate of occupancy, or the equivalent, is validly issued; 
  
 (iii)    Costs incurred for capital improvements in excess of Ten Thousand Dollars ($10,000.00) per year made to reduce Operating
Expenses above the amount reasonably anticipated to be saved as the result of such capital improvements; 
  
 (iv)    Costs incurred by Landlord for the repair of damage to the Building, to the extent that Landlord is reimbursed by insurance proceeds; 
  
 (v)    Costs, including permit, license and inspection costs, incurred with respect to the installation of tenant improvements made for
tenants in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for Tenant or other occupants of the Building; 
  
 (vi)    Depreciation and amortization, except as provided herein, and except with respect to materials, tools, supplies and vendor-type
equipment purchased by Landlord to enable Landlord to supply services Landlord might otherwise contract for with a third party, where such depreciation and amortization would otherwise have been included in the charge for such third party’s
services, all as determined in accordance with generally accepted accounting principles, consistently applied, and when depreciation or amortization is permitted or required, the item shall be amortized over its reasonably anticipated useful life;

  
 (vii)    Leasing commissions, attorneys’ fees, and other costs and
expenses incurred in connection with negotiations or disputes with present or prospective tenants or other occupants of the Building; 
  
 (viii)    Except as provided to the contrary in (iii) above, costs incurred by Landlord for alterations which are considered capital improvements and replacements under generally
accepted accounting principles, consistently applied; 

 
 31 

  
 (ix)    Except as provided to the contrary
in (iii) above, costs of a capital nature, including, without limitation, capital improvements, capital repairs, capital equipment and capital tools, all as determined in accordance with generally accepted accounting principles, consistently
applied; 
  
 (x)    Expenses in connection with services or other benefits which
are not offered to Tenant, or for which Tenant is charged directly, but which are not provided to another tenant or occupant of the Building; 
  
 (xi)    Costs incurred by Landlord due to the violation by Landlord or any other tenants of the Building of the terms and conditions of any lease of space in the Building;

  
 (xii)    Overhead and profit increments paid to Landlord or to subsidiaries
or affiliates of Landlord for services in the Building to the extent the same exceed the cost of such services rendered by unaffiliated third parties on a competitive basis; 
  
 (xiii)    Interest, principal, points and fees on debt or amortization on any mortgage or mortgages or any other debt instrument
encumbering the Building or the Project; 
  
 (xiv)    Landlord’s general
corporate overhead and general administrative expenses; 
  
 (xv)    Any
compensation paid to clerks, attendants or other persons in commercial concessions operated by Landlord or in the parking garage of the Building; 
  
 (xvi)    Except as provided to the contrary in (iii) above, rentals and other related expenses incurred in leasing air conditioning
systems, elevators or other equipment ordinarily considered to be of a capital nature, except equipment not affixed to the Building which is used in providing janitorial or similar services; 
  
 (xvii)    All items and services for which Tenant or any other tenant of the Building reimburses Landlord (other than through the
pass-through of Operating Expenses) and which Landlord provides selectively to
 

 
 32 

 
one or more tenants (other than Tenant) without reimbursement; 
  
 (xviii)    Advertising and promotional expenditures, and costs of purchase and installation of signs in or on the Building (except for the Building directory) identifying the owner of the Building or any
tenant of the Building; 
  
 (xix)    Electric power costs for which any tenant
directly contracts with the local public service company; 
  
 (xx)    Labor
costs (direct and indirect) incurred in connection with any operation of the retail, restaurant and garage operations in the Building; 
  
 (xxi)    Costs incurred in connection with upgrading the Building to comply with handicapped, life, fire and safety codes in effect prior to the date the TCO or its equivalent was
issued; 
  
 (xxii)    Tax penalties incurred as a result of Landlord’s
negligence or inability or unwillingness to make payments when due; 
  
 (xxiii)    All assessments which are not specifically charged to Tenant because of what Tenant has done, which can be paid by Landlord in installments, shall be paid by Landlord in the maximum number of
installments permitted by law and charged as Operating Expenses only in the year in which the assessment installment is actually paid; 
  
 (xxiv)    Any increase of, or reassessment in, real property taxes and assessments resulting from a sale or other change in ownership of the Building or Project during the first
three (3) years of the Term of the Lease, except in the event Tenant causes the sale or change of ownership, then such increase shall be included in the definition of Operating Expenses; 
  
 (xxv)    To the extent that Tenant is taxed separately for, or pays for the taxes on, Building Nonstandard Work, taxes on Building
Nonstandard Work with respect to Tenant’s Premises and the premises of all other tenants; 

 
 33 

  
 (xxvi)    Any other expenses (the value of
which have not been addressed by the foregoing exceptions) which, in accordance with generally accepted accounting practices, consistently applied, would not normally be treated as an Operating Expense by landlords of comparable first-class
institutional quality office buildings. 
  
 (a)    If at any time starting with the first year
following the expiration of the Base Year (“First Year”), if and only if, Landlord determines that Tenant’s Percentage Share of Operating Expenses for the First Year, as estimated by Landlord, will exceed the Operating Expenses
Allowance (as set forth in Section 1(r) hereof), Landlord shall deliver to Tenant an estimate of Tenant’s Percentage Share of Operating Expenses, and Tenant shall pay to Landlord, within ten (10) days of the delivery of such estimate, the
difference between such estimate and the Operating Expenses Allowance for the portion of the First Year which has then expired, and Tenant shall pay during the balance of the First Year through February of the succeeding calendar year a fraction of
the balance of such excess Operating Expenses as would fully amortize such excess over the remaining months of the first calendar year through and including February of the succeeding calendar year. By the first day of March of each succeeding
calendar year during the Term of this Lease, Landlord shall endeavor to deliver to Tenant a statement (“Estimate Statement”) wherein Landlord shall estimate the Operating Expenses for the current calendar year, and the amount by which
Tenant’s Percentage Share of the Operating Expenses on account of the operation or maintenance of the Building is in excess of the Operating Expenses Allowance. Provided, however, if Landlord determines that Tenant’s Percentage Share of
the Operating Expenses for such current calendar year is greater than that set forth in the Estimate Statement, then Landlord may deliver on the first day of June, September, or December, as appropriate, a revised Estimate Statement, and Tenant
shall pay to Landlord, within ten (10) days of the delivery of such revised Estimate Statement, the difference between such revised Estimate Statement and the original Estimate Statement for the portion of the current calendar year which has then
expired, and Tenant shall pay during the balance of such current calendar year through February of the succeeding calendar year a fraction of the balance of such difference as would fully amortize such excess over the remaining months of the then
current calendar year through and including February of the succeeding calendar year. If Tenant’s Percentage Share of the Operating Expenses estimated in the Estimate Statement exceeds the Operating
 

 
 34 

 
Expenses Allowance, then such excess amount shall be divided into twelve (12) equal monthly installments, and Tenant shall pay to Landlord, concurrently with the regular monthly rent payment next
due following the receipt of such statement, an amount equal to one (1) monthly installment multiplied by the number of months from January in the calendar year in which said statement is submitted to the month of such payment, both months
inclusive. Subsequent installments shall be paid concurrently with the regular monthly rent payments for the balance of the calendar year and shall continue until the next calendar year’s Estimate Statement is rendered. By the first day of
March of each succeeding calendar year during the Term of this Lease, Landlord shall endeavor to deliver to Tenant a statement (“Actual Statement”) wherein Landlord shall state the actual Operating Expenses for the preceding calendar year.
If the Actual Statement reveals a greater increase in Tenant’s Percentage Share of Operating Expenses than was estimated by Landlord in the Estimated Statement delivered as provided herein, then upon receipt of the Actual Statement from
Landlord, Tenant shall pay a lump sum equal to said total increase over the Operating Expenses Allowance, less the total of the monthly installments of increases set forth on the Estimate Statement which were paid in the previous calendar year. If,
in any calendar year, Tenant’s Percentage Share of Operating Expenses is less than the amount paid by Tenant pursuant to Landlord’s Estimate Statement for such preceding calendar year, then upon receipt of Landlord’s Actual Statement,
any overpayment made by Tenant on the monthly installment basis provided above shall be credited toward the next monthly rent falling due and the monthly installment of Tenant’s Percentage Share of Operating Expenses to be paid pursuant to the
then current Estimate Statement shall be adjusted to reflect such lower expenses for the most recent calendar year, or if this Lease has been terminated, such excess shall be credited against any amount which Tenant owes Landlord pursuant to this
Lease and, to the extent all amounts which Tenant owes Landlord pursuant to this Lease have been paid, Landlord shall promptly pay such excess to Tenant. Any delay or failure by Landlord in delivering any estimate or statement pursuant to this
paragraph shall not constitute a waiver of its right to require an increase in rent nor shall it relieve Tenant of its obligations pursuant to this paragraph, except that Tenant shall not be obligated to make any payments based on such estimate or
statement until ten (10) days after receipt of such estimate or statement. 
  
 (b)    In the
event Tenant shall dispute the amount set forth in the Actual Statement described above in 

 
 35 

 
Section 6(b), Tenant shall have the right not later than one (1) year following receipt of such Actual Statement to cause Landlord’s books and records with respect to the preceding calendar
year to be audited by a certified public accountant mutually acceptable to Landlord and Tenant. The amounts payable under Section 6(b) by Landlord to Tenant or by Tenant to Landlord, as the case may be, shall be appropriately adjusted on the basis
of such audit. If such audit discloses a liability for further refund by Landlord to Tenant in excess of two percent (2%) of the payments previously made by Tenant for such calendar year, the cost of such audit shall be borne by Landlord; otherwise
the cost of such audit shall be borne by Tenant. If such audit reveals that Landlord has overcharged Tenant, then within ten (10) business days after the results of such audit are made available to Landlord, Landlord shall credit Tenant against next
rent due or reimburse Tenant the amount of such overcharge plus interest thereon at the rate of two percent (2%) in excess of the Reference Rate, not to exceed the maximum rate permitted by law (the “Interest Rate”). The “Reference
Rate” shall mean the interest rate publicly announced from time to time by Security Pacific National Bank as its Prime Rate, and if such term is no longer utilized, the interest rate utilized by Security Pacific National Bank (or if Security
Pacific National Bank ceases to exist, the largest state chartered bank in the State of California), to replace the Prime Rate. If Tenant shall not request an audit in accordance with the provisions of this Section 6(c) within one (1) year of
receipt of Landlord’s Actual Statement, such Actual Statement shall be conclusively binding upon Landlord and Tenant. 
  
 Notwithstanding anything set forth to the contrary in this Section 6(c), so long as Tenant remains a partner of Landlord, Tenant shall have one year after receipt of each Actual Statement in which to request an audit of such Actual
Statement; however, when Tenant is no longer a partner, Tenant shall have up to three (3) years following receipt of such Actual Statement to request an audit thereof. Provided however, no such increase can be assessed against Tenant after the
expiration of two (2) years following the expiration of the Lease, and if such audit shows that Tenant is entitled to a decrease, no such decrease can accrue to Tenant’s benefit after the expiration of two (2) years following the expiration of
the Lease. 
  
 (c)    Even though the Term has expired and Tenant has vacated the Premises, when
the final determination is made of Tenant’s Percentage Share of Operating Expenses for the year
 

 
 36 

 
in which this Lease terminates, Tenant shall immediately pay any increase due over the estimated expenses paid, and conversely, any overpayments made in the event said expenses decrease shall be
immediately rebated by Landlord to Tenant. Provided, however, no such increase or decrease can be assessed after the expiration of the two (2) year period following the expiration of the Lease. 
  

(d)    Notwithstanding anything set forth to the contrary in this Section 6, Landlord agrees that Tenant shall only have to pay its pro rata share
of increases in real property taxes five (5) days prior to the date payment is due to the appropriate taxing authority, on a per tax bill basis rather than monthly, but Tenant shall be required to pay Tenant’s pro rata share of increases in
insurance premiums on a monthly basis, unless Landlord actually pays its insurance premiums on a less frequent basis. In the event Landlord actually pays its insurance premiums on a less frequent basis, then Tenant shall be required to pay its pro
rata share of increases on such less frequent basis. With respect to real property taxes levied against Landlord which are attributable to Tenant’s Leasehold Improvements, Tenant shall pay, as part of personal property taxes pursuant to Section
12 of the Lease, the taxes which are attributable to the Building Nonstandard Improvements. 
  
 Section
7.    Security Deposit. Intentionally Omitted. 
  
 Section
8.    Use. Tenant shall use the Premises for general office purposes and purposes incident thereto, and all other lawful non-retail uses compatible with a first-class headquarters office building, and shall not use or
permit the Premises to be used for any other purpose without the prior written consent of Landlord (except that retail uses may be made of the ground floor by Carnation Company with respect to its business operations and products). In addition,
retail uses may be made of the ground floor by an assignee or sublessees of Tenant provided such uses are consistent with ground floor uses permitted by other first-class institutional quality prestige office buildings in the Glendale-Pasadena area.
Tenant shall not use or occupy the Premises in violation of any recorded covenants, conditions and restrictions affecting the Site or of any law or of the Certificate of Occupancy, or TCO or its equivalent, issued for the Building of which the
Premises are a part, and shall, upon five (5) days’ written notice from Landlord, discontinue any use of the Premises which is declared by any governmental
 

 
 37 

 
authority having jurisdiction to be a violation of any recorded covenants, conditions and restrictions affecting the Site or of any law or of said Certificate of Occupancy, or TCO or its
equivalent. Tenant shall not interfere with radio or television broadcasting or reception from or in the Building or elsewhere. Tenant shall comply with any direction of any governmental authority having jurisdiction which shall, by reason of the
nature of Tenant’s use or occupancy of the Premises, impose any duty upon Tenant or Landlord with respect to the Premises or with respect to the use or occupation thereof. Tenant shall not do or permit to be done anything which will invalidate
the cost of any fire, extended coverage or any other insurance policy covering the Building and/or property located therein and shall comply with all rules, orders, regulations and requirements of the Pacific Fire Rating Bureau or any other
organization performing a similar function. Tenant shall promptly within ten (10) days after demand reimburse Landlord as additional rent for any additional premium charged for such policy by reason of Tenant’s failure to comply with the
provisions of this Section 8, or if Tenant’s use does not invalidate, but instead increases the cost of, the insurance, Tenant shall pay for such increased cost. Tenant shall not do or permit anything to be done in or about the Premises which
will in any way obstruct or interfere with the rights of other tenants or occupants of the Building, or injure or annoy them, or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose, nor shall Tenant
cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or suffer to be committed any waste in or upon the Premises and shall keep the Premises in first class repair and appearance. Tenant shall not place a load
upon the Premises exceeding the average pounds of live load per square foot of floor area (“Excess Load”) specified for the Building by Landlord’s architect or engineer, with the partitions to be considered a part of the live load.
Landlord reserves the right to prescribe the weight and position of all safes, files and heavy equipment which Tenant desires to place in the Premises so as to distribute properly the weight thereof. Tenant’s business machines and mechanical
equipment which cause vibration or noise that may be transmitted to the Building structure or to any other space in the Building shall be so installed, maintained and used by Tenant as to eliminate such vibration or noise. Tenant shall be
responsible for the cost of all structural engineering required to determine Excess Load. 
  
 Section
9.    Payments and Notices. All rents and other sums payable by Tenant to Landlord hereunder shall be
 

 
 38 

 
paid to Landlord at the address designated by Landlord in Section 1(b) above or at such other places as Landlord may hereafter designate in writing. Any notice required or permitted to be given
hereunder must be in writing and may be given by personal delivery by a nationally or locally recognized overnight or same-day delivery service or by mail, and if given by mail shall be deemed sufficiently given if sent by registered or certified
mail addressed to Tenant at the Building of which the Premises are a part, or to Landlord at both of the addresses designated in Section 1(b). Either party may by written notice to the other specify a different address for notice purposes except
that Landlord may in any event use the Premises as Tenant’s address for notice purposes. If more than one person or entity constitutes the “Tenant” under this Lease, service of any notice upon any one of said persons or entities shall
be deemed as service upon all of said persons or entities. 
  
 Section 10.    Brokers. The
parties recognize that the brokers who negotiated this Lease are the brokers whose names are stated in Section 1(v), and agree that Landlord shall be solely responsible for the payment of brokerage commissions to said brokers, and that Tenant shall
have no responsibility therefor. As part of the consideration for Landlord’s entering into this Lease, Tenant represents and warrants to Landlord that to Tenant’s knowledge no other broker, agent or finder negotiated or was instrumental in
negotiating or consummating this Lease and that Tenant knows of no other real estate broker, agent or finder who is, or might be, entitled to a commission or compensation in connection with this Lease based on a claim that they represent Tenant. Any
broker, agent or finder of Tenant whom Tenant has failed to disclose herein shall be paid by Tenant. Tenant shall hold Landlord harmless from all damages and indemnify Landlord for all said damages paid or incurred by Landlord resulting from any
claims that may be asserted against Landlord by any broker, agent or finder undisclosed by Tenant herein. As part of the consideration for Tenant’s entering into this Lease, Landlord warrants and represents to Tenant that, to Landlord’s
knowledge, no other broker, agent or finder negotiated or was instrumental in negotiating or consummating this Lease and that Landlord knows of no other real estate broker, agent or finder who is, or might be, entitled to a commission or
compensation in connection with this Lease, based on a claim that they represent LPC, or an affiliate of same, and, if such representation is not accurate with respect only to claims that such broker represents LPC, any such commission shall be paid
by LPC. Under such circumstances, Landlord agrees to use its best efforts to cause LPC to pay such commission. 

 
 39 

  
 Section 11.    Holding Over. If Tenant holds over
after the expiration or earlier termination of the Term hereof without the express written consent of Landlord, Tenant shall become a tenant at sufference only, at a rental rate equal to the higher of the Annual Basic Rent which would be applicable
to the Premises upon the date of such expiration (subject to adjustment as provided in Section 6 hereof and prorated on a daily basis), or the amount per rentable square foot, without deduction for economic concessions, being quoted in a final offer
by Landlord to prospective tenants for comparable space in the Building, and otherwise subject to the terms, covenants and conditions herein specified, so far as applicable. Acceptance by Landlord of rent after such expiration or earlier termination
shall not constitute a holdover hereunder or result in a renewal. The foregoing provisions of this Section 11 are in addition to and do not affect Landlord’s right of re-entry or any rights of Landlord hereunder or as otherwise provided by law.
If Tenant fails to surrender the Premises upon the expiration of this Lease, despite demand to do so by Landlord, Tenant shall indemnify and hold Landlord harmless from all loss or liability, including, without limitation, any claim made by any
succeeding tenant founded on or resulting from such failure to surrender. 
  
 Section
12.    Taxes on Tenant’s Property. 
  
 (a)    Tenant shall pay at
least ten (10) days before delinquency, taxes levied against any personal property or trade fixtures placed by, or on behalf of, Tenant in or about the Premises and that portion of the Aggregate Improvements that constitute Building Nonstandard
Improvements (which shall, for the purposes of this paragraph, include Tenant’s Changes). If any such taxes on Tenant’s personal property or trade fixtures or Building Nonstandard Improvements are levied against Landlord or Landlord’s
property, or if the assessed value of the Premises is increased by the inclusion therein of a value placed upon such personal property, trade fixtures of Tenant, or such Building Nonstandard Improvements, and, if Landlord, after written notice to
Tenant, pays the taxes based upon such increased assessments, which Landlord shall have the right to do regardless of the validity thereof, but only under proper protest if requested by Tenant, Tenant shall upon demand repay to Landlord the taxes
levied against Landlord, or the proportion of such taxes resulting from such increase in the assessment; provided that, in any such event, at Tenant’s sole cost and expense, Tenant shall have the right, in the name of Landlord and with
Landlord’s full cooperation, to bring suit in any court of competent jurisdiction to recover
 

 
 40 

 
the amount of any such taxes so paid under protest, and any amount so recovered shall belong to Tenant. 
  
 (b)    The real property taxes and assessments levied against Landlord which are attributable to Tenant’s Building Nonstandard Improvements shall be deemed to be taxes levied
against personal property of Tenant and shall be governed by the provisions of Section 12(a) above. If the records of the County Assessor are available and sufficiently detailed to serve as a basis for determining the taxes attributable to Building
Nonstandard Work, such records shall be binding on both Landlord and Tenant. If the records of the County Assessor are not available or sufficiently detailed to serve as a basis for making said determination, the actual cost of construction of the
Building Nonstandard Work shall be used. 
  
 (c)    Nothing herein shall be construed to require
Tenant to be double-charged for such taxes, directly or indirectly, and to the extent any of such taxes are charged to Tenant as part of Operating Expenses, Tenant shall not have to pay such taxes pursuant to this provision. 
  
 Section 13.    Condition of Premises. Provided that no material adverse effect occurs with respect to
Tenant’s use of the Premises, Tenant’s execution of the Lease shall constitute a specific acknowledgment and acceptance of the various start-up inconveniences that may be associated with the use of the Building Common Areas such as certain
construction obstacles including scaffolding, delays in the use of freight elevator service, certain elevators not being available to Tenant, the passage of work crews using elevators, uneven air-conditioning service and other typical conditions
incident to recently constructed office buildings. Further, Tenant’s execution of the Lease shall constitute an acknowledgment, in light of the practical impossibility of ensuring that every floor slab has been installed with absolutely no
deflection, that all wood floor coverings, wood paneling, and similar interior Aggregate Improvements have been and/or will be designed to accommodate the actual floor slab deflection unique to each particular area of the Premises to be so improved.

  
 Section 14.    Alterations. 
  
 (a)    Tenant may, at any time and from time to time during the Term of this Lease, at its sole cost and expense, make alterations, additions,
installations, substitutions, improvements and decorations (hereinafter collectively called “Changes”) in and to the Premises,
 

 
 41 

 
excluding structural changes, on the following conditions, and providing such Changes will not result in a violation of or require a change in the Certificate of Occupancy or TCO applicable to
the Premises: 
  
 (i)    the outside appearance, character or use of the Building
shall not be affected, and no Changes shall weaken or impair the structural strength or, in the reasonable opinion of Landlord, lessen the value of the Building or create the potential for unusual expenses to be incurred upon the removal of Changes
and the restoration of the Premises upon the termination of this Lease; provided, however, no matter pertaining to signage shall be subject to Landlord’s approval, although Tenant agrees to consult with Landlord regarding the sign;

  
 (ii)    no part of the Building outside of the Premises shall be physically
affected; 
  
 (iii)    the proper functioning of any of the mechanical,
electrical, sanitary and other service systems or installations of the Building (“Service Facilities”) shall not be adversely affected and there shall be no construction which might interfere with Landlord’s free access to the Service
Facilities or interfere with the moving of Landlord’s equipment to or from the enclosures containing the Service Facilities; 
  
 (iv)    in performing the work involved in making such Changes, Tenant shall be bound by and observe all of the conditions and covenants contained in this paragraph; 

 
 (v)    all work shall be done at such times and in such manner as Landlord from time to
time may designate; 
  
 (vi)    Tenant shall not be permitted to install and make
part of the Premises any materials, fixtures or articles which are subject to liens, conditional sales contracts or chattel mortgages; 
  
 (vii)    If Landlord provides notice to Tenant at the time of such installation, at the date upon which the term of this Lease shall end, or the date 

 
 42 

 
of any earlier termination of this Lease, Tenant shall on Landlord’s written request restore the Premises to their condition prior to the making of any Changes permitted by this paragraph,
reasonable wear and tear excepted. 
  
 (b)    Before proceeding with any Change (exclusive of
changes to items constituting Tenant’s personal property), Tenant shall submit to Landlord plans and specifications for the work to be done, which shall require Landlord’s written approval. Landlord shall then prepare or cause to be
prepared, at Tenant’s expense, mechanical, electrical and plumbing drawings and may confer with consultants in connection with the preparation of such drawings and may also submit to such consultant(s) any of the plans prepared by Tenant. If
Landlord or such consultant(s) shall disapprove of any of the Tenant’s plans, Tenant shall be advised of the reasons for such disapproval. In any event, Tenant agrees to pay to Landlord, as additional rent, the cost of such consultation and
review immediately upon receipt of invoices either from Landlord or such consultant(s). Any Change for which approval has been received shall be performed strictly in accordance with the approved plans and specifications, and no amendments or
additions to such plans and specifications shall be made without the prior written consent of Landlord. 
  
 (c)    If the proposed Change requires approval by or notice to the lessor of a superior lease or the holder of a mortgage, and Tenant has received notification that such approval is required, no Change shall be
proceeded with until such approval has been received, or such notice has been given, as the case may be, and all applicable conditions and provisions of said superior lease or mortgage with respect to the proposed Change or alteration have been met
or complied with at Tenant’s expense; and Landlord, if it approves the Change, will request such approval or give such notice, as the case may be. Provided, however, the criteria for approval by the lessor of a superior lease or the holder of a
mortgage cannot be materially more stringent with respect to the Tenant than the approval rights of Landlord. 
  
 (d)    After Landlord’s written approval has been sent to Tenant and the approval by or notice to the lessor of a superior lease or the holder of a superior mortgage has been received or given, as the case
may be, Tenant shall enter into an agreement for the performance of the work to be done pursuant to this paragraph with a contractor or contractors
 

 
 43 

 
selected by Tenant and approved by Landlord. All costs and expenses incurred in Changes shall be timely paid by Tenant. Tenant’s contractors shall obtain on behalf of Tenant and at
Tenant’s sole cost and expense all necessary governmental permits and certificates for the commencement and prosecution of Tenant’s Changes and for final approval thereof upon completion. In the event Tenant shall request any changes in
the work to be performed after the submission of the plans referred to in this Section 14, such additional changes shall be subject to the same approvals and notices as the changes initially submitted by Tenant. 
  
 (e)    Intentionally Omitted. 
  
 (f)    All Changes and the performance thereof shall at all times comply with (i) all laws, rules, orders, ordinances, directions, regulations and requirements of all governmental
authorities, agencies, offices, departments, bureaus and boards having jurisdiction thereof, (ii) all rules, orders, directions, regulations and requirements of the Pacific Fire Rating Bureau, or of any similar insurance body or bodies, and (iii)
all rules and regulations of Landlord, and Tenant shall cause Changes to be performed in compliance therewith and in a good and first class workmanlike manner, using materials and equipment at least equal in quality and class to the original
installations of the Building. Changes shall be performed in such manner as not to interfere with the occupancy of any other tenant in the Building nor delay, or impose any additional expense upon Landlord in construction, maintenance or operation
of the Building, and shall be performed by contractors or mechanics approved by Landlord pursuant to this paragraph, who shall coordinate their work in cooperation with any other work being performed with respect to the Building. Throughout the
performance of Changes, Tenant, at its expense, shall carry, or cause to be carried, worker’s compensation insurance in statutory limits, and general liability insurance for any occurrence in or about the Building, of which Landlord and its
managing agent shall be named as parties insured, in such limits as Landlord may reasonably prescribe, with insurers reasonably satisfactory to Landlord, all in compliance with Section 21(b). Provided, however, nothing herein or in this Lease shall
preclude Tenant from having deductibles on all such policies that Tenant has for comparable insurance carried in connection with its operations or from carrying insurance with companies with which Tenant normally and regularly places its insurance
with respect to its other operations, including its affiliated companies. 

 
 44 

  
 (g)    Tenant further covenants and agrees that any
mechanic’s lien filed against the Premises or against the Building for work claimed to have been done for, or materials claimed to have been furnished to, Tenant, will be discharged by Tenant, by bond or otherwise, within ten (10) days after
the filing thereof, at the cost and expense of Tenant. All alterations, decorations, additions or improvements upon the Premises, made by either party, including (without limiting the generality of the foregoing) all wallcovering, built-in cabinet
work, paneling and the like, shall, unless Landlord elects otherwise at the time of installation, become the property of Landlord, and shall remain upon, and be surrendered with, the Premises, as a part thereof, at the end of the Term hereof, except
that Landlord may, by written notice to Tenant given at least thirty (30) days prior to the end of the Term, require Tenant to remove all partitions, counters, railings and the like installed by Tenant, and Tenant shall repair any damage to the
Premises arising from such removal or, at Landlord’s option, shall pay to Landlord all of Landlord’s actual documented and reasonable costs of such removal and repair. 
  
 (h)    All articles of personal property and all business and trade fixtures, machinery and equipment, furniture and movable partitions owned by Tenant
or installed by Tenant at its expense in the Premises shall be and remain the property of Tenant and may be removed by Tenant at any time during the Lease Term, provided Tenant is not in default hereunder, and provided further that Tenant shall
repair any damage caused by such removal. If Tenant shall fail to remove all of its effects from said Premises upon termination of this Lease for any cause whatsoever, Landlord may, after five (5) days’ notice to Tenant, at its option, remove
the same in any manner that Landlord shall choose, and store said effects without liability to Tenant for loss thereof, and Tenant agrees to pay Landlord on demand any and all expenses incurred in such removal, including court costs and
attorneys’ fees and storage charges on such effects for any length of time that the same shall be in Landlord’s possession, or Landlord may, at its option, without notice, sell said effects, or any of the same, at private sale and without
legal process, for such price as Landlord may obtain and apply the proceeds of such sale upon any amounts due under this Lease from Tenant to Landlord and upon the expense incident to the removal and sale of said effects. 
  
 (i)    Subject to Landlord’s agreement to minimize any disturbance of Tenant’s use of the Premises, Landlord
reserves the right at any time, and from time to time, without
 

 
 45 

 
the same constituting an actual or constructive eviction, and without incurring any liability to Tenant therefor or otherwise affecting Tenant’s obligations under this Lease, to make such
changes, alterations, additions, improvements, repairs or replacements in or to the Site or the Building (including the Premises if required to do so by any law or regulation) and the fixtures and equipment thereof, as well as in or to the street
entrances, halls, passages and stairways thereof, as Landlord may deem necessary or desirable. Nothing contained in this Section 14 shall be deemed to relieve Tenant of any duty, obligation or liability of Tenant with respect to making any repair,
replacement or improvement or complying with any law, order or requirement of any government or other authority, and nothing contained in this Section 14 shall be deemed or construed to impose upon Landlord any obligation, responsibility or
liability whatsoever, for the care, supervision or repair of the Building, or any part thereof, other than as otherwise provided in this Lease. The provisions of this Section 14 regarding approval rights of Landlord or any superior mortgage holder
or lessor shall not be applicable to Tenant’s sign rights. 
  
 Section
15.    Repairs. 
  
 (a)    Except as provided specifically to the
contrary in this Lease, Tenant shall, when and if needed or whenever requested by Landlord to do so, at Tenant’s sole cost and expense, maintain and make all repairs to the Premises and every part thereof, to keep, maintain and preserve the
Premises in first-class condition, excepting ordinary wear and tear. Any such maintenance shall be performed by such contractors selected by Tenant and approved by Landlord. Tenant shall upon the expiration or sooner termination of the Term hereof
surrender the Premises to Landlord in the same condition as when received, reasonable wear and tear excepted. The phrase “same condition” shall mean the condition of the Premises when Tenant commenced business operations, rather than the
condition described in Attachment 1 to the Work Letter Agreement. Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the Premises or any part thereof, and the parties hereto affirm that Landlord has made no
representations to Tenant respecting the condition of the Premises or the Building except as specifically herein set forth. 
  
 (b)    Anything contained in Section 15(a) above to the contrary notwithstanding, Landlord shall repair and maintain the structural portions of the Building, including the
 

 
 46 

 
basic plumbing, heating, ventilating, air conditioning and electrical systems installed or furnished by Landlord, unless such maintenance and repairs are caused in part or in whole by the act,
neglect, fault, or omission of any duty by Tenant, its agents, servants, employees or invitees, in which case, Tenant shall pay to Landlord as additional rent the reasonable cost of such maintenance and repairs, unless and to the extent Landlord is
entitled to receive the proceeds from insurance carried as part of Operating Expenses. Landlord shall not be liable for any failure to make any such repairs, or to perform any maintenance unless such failure shall persist for an unreasonable time
after written notice of the need of such repairs or maintenance is given to Landlord by Tenant. Except as provided in Section 22 hereof and in item G of the General Conditions, there shall be no abatement of rent and no liability of Landlord by
reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Building or the Premises or in or to fixtures, appurtenances and equipment therein.
Except as provided in Section 15(c) to the contrary, Tenant waives the right to make repairs at Landlord’s expense under any law, statute or ordinance now or hereafter in effect. Notwithstanding anything to the contrary contained in Sections
(a) and (b) of this Section 15, Tenant shall maintain and repair at its sole cost and expense, and with maintenance contractors approved by Landlord, all non-base Building facilities, including lavatory, shower, toilet, washbasin and kitchen
facilities and heating and air-conditioning systems, including all plumbing connected to said facilities or systems installed by Tenant or on behalf of Tenant or existing in the Premises at the time of delivery of possession of the Premises to
Tenant by Landlord. The provisions of the immediately preceding sentence shall not apply to the basic heating and air-conditioning system provided by Landlord to all tenants of the Building. 
  
 (c)    Notwithstanding any provision set forth in Section 15(b) to the contrary, if Tenant provides written notice to Landlord of an event or
circumstance which requires the action of Landlord with respect to repair and/or maintenance, and Landlord fails to provide such action within a reasonable period of time, given the circumstances, after the receipt of such written notice, but in no
event earlier than twenty-one (21) days after receipt of such written notice, then Tenant may proceed to take the required action upon delivery of an additional written notice to Landlord specifying Tenant is taking such required action, and if such
action was required under the terms of this Lease to be taken by Landlord, then
 

 
 47 

 
Tenant shall be entitled to prompt reimbursement by Landlord of Tenant’s reasonable costs and expenses in taking such action plus interest thereon at the Interest Rate (as defined in Section
6(c) above). In the event Tenant takes such action, and such work will affect the Building’s life safety system, heating, ventilating and air conditioning systems or elevator systems, Tenant shall use only those contractors used by Landlord in
the Building for work on such systems. Further, if Landlord does not deliver a detailed written objection to Tenant within thirty (30) days after receipt of an invoice by Tenant of its costs of taking action which Tenant claims should have been
taken by Landlord, and if such invoice from Tenant sets forth a reasonably particularized breakdown of its costs and expenses in connection with taking such action on behalf of Landlord, then Tenant shall be entitled to deduct from rental payable by
Tenant under this lease, the amount set forth in such invoice. If, however, Landlord delivers to Tenant within thirty (30) days after receipt of Tenant’s invoice, a written objection to the payment of such invoice, setting forth with reasonable
particularity Landlord’s reasons for its claim that such action did not have to be taken by Landlord pursuant to the terms of this Lease, then Tenant shall not be entitled to such deduction from rental, but as Tenant’s sole remedy, Tenant
may proceed to claim a default by Landlord or, if elected by either Landlord or Tenant, the matter shall proceed to resolution pursuant to Section 63. 
  
 Section 16.    Liens. Tenant shall not permit any mechanic’s, materialmen’s or other liens to be filed against the real property of which the Premises form a part
nor against the Tenant’s leasehold interest in the Premises without causing such lien to be removed by bonding or otherwise within ten (10) days after filing. Landlord shall have the right at all reasonable times to post and keep posted on the
Premises any notices which it deems necessary for protection from such liens. If any such liens are filed, and are not removed by bonding or otherwise within ten (10) days after filing, Landlord may, without waiving its rights and remedies based on
such breach of Tenant and without releasing Tenant from any of its obligations, cause such liens to be released by any means it shall deem proper, including payment in satisfaction of the claim giving rise to such lien. Tenant shall pay to Landlord
at once, upon notice by Landlord, any sum paid by Landlord to remove such liens, together with interest at the maximum rate per annum permitted by law from the date of such payment by Landlord. 

 
 48 

  
 Section 17.    Entry by Landlord. Except as provided
in Section 19 and 20 of this Lease and in item G of the General Conditions to the contrary, subject to Landlord’s agreement to minimize any disturbance of Tenant’s use of the Premises by exercise of the following rights, Landlord reserves
and shall at any and all times have the right to enter the Premises to inspect the same, to supply janitor service and any other service to be provided by Landlord to Tenant hereunder, to submit said Premises to prospective purchasers, or, during
the Last twelve (12) months of the term of this Lease, to prospective tenants, to post notices of nonresponsibility, to alter, improve or repair the Premises or any other portion of the Building, all without being deemed guilty of any eviction of
Tenant and without abatement of rent, and may, in order to carry out such purposes, erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, provided that the business of Tenant shall
be interfered with as little as is reasonably practicable. Tenant hereby waives any claim for damages for any injury or inconvenience or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any
other loss occasioned thereby. For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in, upon and about the Premises, excluding Tenant’s vaults and safes and areas reasonably
designated by Tenant as Secured Areas, and Landlord shall have the means which Landlord may deem proper to open said doors in an emergency in order to obtain entry to the Premises, and any entry to the Premises obtained by Landlord by any of said
means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction of Tenant from the Premises or any portion thereof, and any damages caused on
account thereof shall be paid by Tenant. It is understood and agreed that no provision of this Lease shall be construed as obligating Landlord to perform any repairs, alterations or decorations except as otherwise expressly agreed herein to be
performed by Landlord. Landlord shall attempt in the exercise of its rights under this Section 17 to minimize any disturbance of Tenant’s use and possession of the Premises and to provide as much notice to Tenant as may be reasonably possible
prior to any such exercise of Landlord’s rights under this Section 17. 
  
 Section
18.    Utilities and Services. Notwithstanding anything set forth in this Section 18 to the contrary, but subject to the provisions hereinbelow requiring direct payment by Tenant for after-hours and extra or excess
 

 
 49 

 
usage, Landlord shall provide to the Premises, as part of the Operating Expenses, the following services and utilities, consistent with the quality and quantity of such services and utilities
provided in other comparable first class office buildings in the vicinity of the Building: (a) heat, ventilation, air conditioning and other cooling as required for the comfortable use and occupancy of the Premises during the Business Hours
described below (however, Landlord shall provide to the Premises, upon Tenant’s request and agreement to pay after-hours costs as provided hereinbelow, heat, ventilation, air conditioning and other cooling twenty-four (24) hours per day, seven
(7) days per week, three hundred sixty-five (365) days per year); (b) janitorial services, five (5) days per week, as reasonably required to keep the Premises in a clean and wholesome condition, Mondays through Fridays, holidays excepted, pursuant
to the Building standard cleaning specification attached to the Lease as Exhibit “H”, provided Tenant shall leave the Premises in a reasonably tidy condition at the end of each business day; (c) electrical power twenty-four (24)
hours per day, seven (7) days per week, three hundred sixty-five (365) days per year, for normal office purposes pursuant to the model for construction attached to the Work Letter Agreement as Attachment 2, including, but not limited to, normal
fluorescent and incandescent lighting, including task and task ambient lighting systems, office equipment for the normal functioning of a business headquarters office, including, but not limited to, duplicating (reproduction) machines and kitchen
equipment (some uses of which will require separate electrical consumption); (d) replacement of Building standard fluorescent tube ballasts as required from time to time as a result of normal usage; (e) Building security services (comparable to the
security services provided by the other comparable office buildings in the vicinity of the Building) on site containing a system, equipment, personnel, and procedures to be more particularly set forth in Building. Standard Security Specifications to
be mutually agreed upon between the parties hereto prior to the Commencement Date and thereafter attached to the Lease as Exhibit “I”, which specifications shall require that, if requested by Tenant, Landlord provide one or more
security guards physically present as reasonably necessary at the Building twenty-four (24) hours per day, seven (7) days per week, three hundred sixty-five (365) days per year, and upon request, such security guards shall escort occupants or
visitors of the Building to their vehicles in the garage of the Building (Tenant, at its sole cost and expense, shall be permitted to install its own security system for the Premises, provided such system is compatible and coordinated with the
Building’s security
 

 
 50 

 
system); and (f) window washing services as set forth on Exhibit “H”. The parties shall agree upon the security specifications in subparagraph (e) above which shall include the
standards set forth herein and shall otherwise be comparable to the security specifications utilized by other comparable office buildings. If the parties are unable to agree upon the security specifications, such specifications shall be determined
by an arbitrator selected pursuant to the rules of the American Arbitration Association. Notwithstanding the foregoing, the cost of Tenant’s after-hours HVAC shall not be included as part of the Operating Expenses, but shall be paid by Tenant
as set forth hereinbelow. In addition, the costs of security guards to provide escort service shall not be included as part of the Operating Expenses in the Base Year, and shall be included as part of the Operating Expenses, to the extent actually
incurred, in years subsequent to the Base Year. Provided, however, that with respect to the food service center, technical service center and cafeteria, if Tenant utilizes Utilities and Services in excess of the Utilities and Services required for
office space use, Tenant shall pay for the cost of such extra or excess use of Utilities and/or Services. 
  
 Landlord, in accordance with Attachment 2 to the Work Letter Agreement, shall provide (i) an air-handler on every floor of Tenant’s Premises, (ii) capacity in the form of a sufficient amount of chillers and air ducts, but not
the systems for, separate twenty-four (24) hour air conditioning for Tenant’s computer, word processing and telephone closet areas, if any (however, any after-hours use of HVAC shall be paid by Tenant as set forth below), and (iii) an
additional five (5) ton cumulative HVAC capacity per floor. Tenant shall have the right, at its sole cost and expense, to install, maintain and repair a self-contained HVAC unit on a portion of the roof of the Building approved by Landlord, and
shall have access to the roof of the Building and the core to install such HVAC unit and chilled water lines from such unit to all of the Tenant’s initial and expanded Premises. Tenant shall also have access to the core of the Building to
install and maintain, at Tenant’s sole cost and expense, communication lines. Such access to the roof and core shall be coordinated so as to eliminate or minimize any delay in completion of the Building and shall be subject to Landlord’s
controls and supervision and any work performed in connection with the installation of any such HVAC unit, chilled water lines and communication lines shall be done by a contractor approved by Landlord and shall not interfere with the Building
systems and any helipad and shall be subject to the requirements of Section 14 regarding
 

 
 51 

 
alterations. Tenant shall be liable to Landlord for any damages resulting from such access and work, and any interference caused thereby with Landlord’s work of construction shall constitute
a Tenant Delay. Tenant’s rights under this paragraph shall not be exclusive, and Landlord may permit other tenants to have HVAC units on the portions of the roof not needed by Tenant therefor. 
  
 Landlord shall provide access to and egress from the Premises, the Common Areas of the Building and the parking garage twenty-four (24)
hours per day, seven (7) days per week, three hundred sixty-five (365) days per year (after-hours access may require the use of a magnetic card or compliance with other reasonable security devices required by Landlord). In addition, Landlord shall
provide the following items and services in the Building at least in the quantity and quality comparable to the comparable office buildings in the vicinity of the Building and sufficient to provide Tenant with the ability to use the Premises for
normal office use: (y) domestic running water and necessary supplies in the washrooms sufficient for normal use thereof by occupants of the Building, and (z) heat, ventilation, air cooling, lighting, and electrical power in those areas of the
Building from time to time as designated by Landlord for use during the Business Hours by Tenant and in common with all tenants and other persons of the Building but under the exclusive control of Landlord. 
  
 The business hours of the Building shall be 7:30 A.M. to 6:30 P. M., Monday through Friday, and 8:00 A. M. through 1:00 P.M., Saturdays,
with New Year’s Day, Washington’s Birthday, Memorial Day, July 4th, Labor Day, Thanksgiving Day, Christmas Day and any other day mutually agreed to by Landlord and Tenant excepted (“Business Hours”). 
  
 Except as provided above, Tenant shall not be charged for excess usage during Business Hours until the total consumption during Business
Hours exceeds the amount set forth in Attachment 2 to the Work Letter Agreement to be attached to the Lease. In the event that Tenant requires utilities, HVAC and/or services in excess of normal office usage during Business Hours or at any time
after Business Hours (except Tenant will not be charged for after-hours, non-excess, use of water or electricity, except to the extent same are necessary to provide after-hours (HVAC), Landlord agrees to provide such extra utilities and services and
Tenant agrees to reimburse to Landlord its actual costs of providing such extra service and/or utilities, without a profit to Landlord. In such event,
 

 
 52 

 
Landlord shall have the right (to the extent Landlord or any affiliate of LPC regularly exercises such rights under similar circumstances in similar buildings owned or controlled by Landlord or
one of its affiliates) to separately meter Tenant’s Premises or portions thereof at Tenant’s expense in order to monitor excess electrical consumption . Normal power availability shall not be in violation of Title 24 of the California
Administrative Code and other applicable codes and statutes. Landlord and Tenant hereby agree that wattage standard for determining overuse by Tenant will be equal to five (5) watts per rentable square foot per year. 
  
 Following the Base Year, notwithstanding anything to the contrary set forth in this Section 18, Tenant shall have the right to designate
and change the type of security system and the janitorial service employed by Landlord for the Building. 
  
 Tenant
specifically undertakes to install and maintain at Tenant’s cost such fire protection equipment, including, without limitation, emergency lighting, as required by any governmental authority or insurer, and, if so required, Tenant shall appoint
one of Tenant’s personnel to coordinate with the fire protection facilities and personnel of Landlord. Any incandescent light bulbs used in the Premises shall be paid for by Tenant; upon Tenant’s request, Tenant’s personnel shall
install incandescent light bulbs or other Building Nonstandard bulbs in the Premises; Tenant agrees to pay Landlord upon demand Landlord’s actual cost for all such incandescent light bulbs installed or other Building Nonstandard Improvements.

  
 Section 19.    Indemnification. Because Tenant is required to maintain insurance
covering its property and activities within the Premises, and because of the probable existence of waiver of subrogation set forth in Section 21(f), except for claims covered by insurance obtained by Landlord as part of Operating Expenses, to the
fullest extent permitted by law, Tenant hereby agrees to defend, indemnify and hold Landlord harmless against and from any and all claims arising from Tenant’s use of the Premises or the conduct of its business or from any activity, work, or
thing done, permitted or suffered by Tenant, its agents, contractors, employees or invitees in or about the Premises, but including the roof to the extent the roof of the Building is affected by any antennae or HVAC unit installed by Tenant on the
roof of the Building. To the extent such damages and claims are not covered by insurance obtained by Landlord. Tenant hereby agrees to further indemnify and hold harmless Landlord against and from any and
 

 
 53 

 
all claims arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any act, neglect, fault or
omission of Tenant, or of its agents, employees or invitees, and from and against all costs, attorneys’ fees, expenses and liabilities incurred in or about such claim or any action or proceeding brought thereon; and in case of any action or
proceeding brought against Landlord by reason of any such claim, Tenant, upon notice from Landlord, hereby agrees to defend the same at Tenant’s expense by counsel approved in writing by Landlord. Tenant, as a material part of the consideration
to Landlord, hereby assumes all risk of damage to property in, upon or about the Premises from any cause whatsoever, except that which is caused by the failure of Landlord to observe any of the terms and conditions of this Lease, where such failure
has persisted for an unreasonable period of time after written notice of such failure, and Tenant hereby waives all its claims in respect thereof against Landlord. Notwithstanding Sections 19 and 20 of this Lease, because Landlord is required to
maintain insurance on the Building, and because of the probable existence of waiver of subrogation set forth in Section 21(f), Tenant shall not be required to defend, save harmless and indemnify Landlord from any liability for injury, loss, accident
or damage (collectively, “Damages”) to any person resulting from Landlord’s negligent acts or omissions or willful misconduct or that of its agents, contractors, servants, employees or licensees, in connection with Landlord’s
activities on or about the Premises, unless such Damages are covered by insurance obtained by Tenant. Whereupon Landlord hereby indemnifies and agrees to hold Tenant harmless from and against Landlord’s negligence or willful misconduct or that
of its agents, contractors, servants, employees or licensees in connection with Landlord’s activities outside the Premises, but otherwise within the Project. Such exclusion from Tenant’s indemnity and such agreement by Landlord to so
indemnify and hold Tenant harmless are not intended to and shall not relieve any insurance carrier of its obligations under policies required to be carried by Tenant and Landlord pursuant to the provisions of this Lease to the extent that such
policies cover (or, if such policies would have been carried as required, would have covered) the result of negligent acts or omissions or willful misconduct of Landlord or Tenant or those of its agents, contractors, servants, employees or
licensees; provided, however, the provisions of this sentence shall in no way be construed to imply the availability of any double or duplicate coverage following the primary liability of such carriers or of such implied carriers. Landlord’s
and Tenant’s indemnification
 

 
 54 

 
obligations hereunder may or may not be coverable by insurance, but the failure of either Landlord or Tenant to carry insurance covering the indemnification obligation shall not be considered a
default under this Lease. In addition, Tenant shall not be liable for any consequential damages to Landlord, and Landlord shall not be liable for any consequential damages to Tenant. 
  
 Section 20.    Damage to Tenant’s Property. Notwithstanding the provisions of Section 19 to the contrary, Landlord or its agents shall not
be liable for any damage to property entrusted to employees of the Building, nor for loss of or damage to any property by theft or otherwise, nor for any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam,
gas, electricity, water or rain which may leak from any part of the Building or from the pipes, appliances or plumbing works therein or from the roof, street or sub-surface or from any other place or resulting from dampness, or any other patent or
latent cause whatsoever, except to the extent such damage is both covered by insurance carried by Landlord as part of Operating Expenses and is not covered by insurance carried by Tenant. Tenant shall give prompt notice to Landlord in case of fire
or accidents in the Premises or in the Building or of defects therein or in the fixtures or equipment located therein. 
  
 Section 21.    Insurance. 
  
 (a)    During the term
hereof, Tenant, at its sole expense, subject to the qualifications set forth in Section 14(f) as to deductibles and companies, shall obtain and keep in force the following insurance: 
  
 (i)    All Risk insurance upon property of every description and kind owned by Tenant and located in the Building or for which Tenant is
legally liable or installed by or on behalf of Tenant, including, without limitation, fittings, installations, fixtures and any other personal property, Aggregate Improvements (other than “Building Standard Work” as described in Section
1(1) hereof), and alterations, in an amount not less than ninety percent (90%) of the full replacement cost thereof. All such insurance policies shall name Tenant and Landlord as named insureds thereunder, and, at Landlord’s request, shall name
Landlord’s mortgagees (and, if applicable, ground or primary lessors) as loss payees thereunder, all as their respective interests may appear. Landlord will not
 

 
 55 

 
be required to carry insurance of any kind on any “Building Nonstandard Work”, as described in Section 1(m) hereof, on Tenant’s furniture or furnishings, or on any of Tenant’s
fixtures, equipment, improvements, alterations or appurtenances under this Lease; and Landlord shall not be obligated to repair any damage thereto or replace the same. 
  
 (ii)    Comprehensive general liability insurance coverage (including auto), including personal injury, bodily injury, broad form
property damage, owner’s protective coverage, contractual liability, and products and completed operations liability, in limits not less than $5,000,000 inclusive. All such insurance policies shall name Tenant as a named insured thereunder and
shall name Landlord and Landlord’s mortgagees (and, if applicable, ground or primary lessors of Landlord) as additional insureds thereunder, all as their respective interests may appear. 
  

(iii)    Worker’s Compensation and Employer’s Liability insurance as required by law. 
  
 (iv)    Loss of income and extra expense insurance for which Tenant may self-insure in such amounts as
will reimburse Tenant for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent tenants or attributable to prevention of access to the Premises or to the Building as a result of such perils. 

 
 (v)    Intentionally Omitted. 
  
 (vi)    Any other form or forms of insurance as Tenant, Landlord, or Landlord’s mortgagees or ground or primary lessors may
reasonably require from time to time in form, in amounts and for insurance risks against which a prudent tenant of a comparable size and in a comparable business would protect itself. 
  
 (b)    All policies shall be issued by insurers that are acceptable to Landlord and in form satisfactory from time to time to Landlord. Tenant will
deliver certificates of insurance on the Landlord’s standard form (or, if required by the mortgagees of Landlord, or any ground or primary lessors, certified copies of each such insurance Policy) to Landlord as
 

 
 56 

 
soon as practicable after the placing of the required insurance, but not later than the date Tenant takes possession of all or any part of the Premises. All policies shall contain an undertaking
by the insurers to notify Landlord and Landlord’s mortgagees (and, if applicable, ground or primary Lessors) in writing, by registered or certified U.S. Mail, return receipt requested, not less than thirty (30) days before any material change,
reduction in coverage, cancellation, or other termination thereof. 
  
 (c)    During the term
hereof, Landlord, as part of the Operating Expenses, and with companies and in such amounts (including deductibles) as are carried by prudent Landlords of comparable buildings, shall obtain and keep in force the following insurance and such other
insurance as Tenant may reasonably designate: 
  
 (i)    All Risk insurance and
fire and extended coverage insurance, earthquake insurance (to the extent reasonably available) and, whenever any construction is taking place, builders’ risk insurance, upon the Project (except for the Building Nonstandard Work, alterations
and personal property of Tenant and any tenant improvements, personal property and alterations of other tenants) in an amount not less than one hundred percent (100%) of the full replacement cost thereof. All such insurance policies shall name
Tenant and Landlord as named insureds thereunder, and, at Landlord’s request, shall name Landlord’s mortgagees (and, if applicable, ground or primary lessors) as loss payees thereunder, all as their respective interests may appear.
Notwithstanding the foregoing, Landlord will not be required to carry insurance of any kind on any “Building Nonstandard Work”, as described in Section 1(m) hereof, on Tenant’s or other tenants’ furniture or furnishings, or on
any of Tenant’s fixtures, equipment, improvements, alterations, or appurtenances under this Lease or other tenants’ leases; and Landlord shall not be obligated to repair any damage thereto or replace the same. 
  
 (ii)    Comprehensive general liability insurance coverage (including auto), including personal
injury, bodily injury, public liability, broad form property damage, owner’s protective coverage, contractual liability, and products and completed operations liability, in limits of
 

 
 57 

 
liability (including umbrella coverage) not less than $25,000,000, inclusive. All such insurance policies shall name Landlord as a named insured thereunder and shall name Tenant, Landlord and
Landlord’s mortgagees (and, if applicable, ground or primary lessors of Landlord) as additional insureds thereunder, all as their respective interests may appear. 
  
 (iii)    Worker’s Compensation and Employer’s Liability insurance as required by law in an amount not less than $500,000.

  
 (iv)    Rent Continuation insurance in commercially reasonable amounts.

  
 (v)    Fidelity insurance in an amount not less than $5,000,000 to protect
against losses due to employee dishonesty, theft by a property manager or any other third parties and mysterious disappearances. 
  
 (vi)    Any other form or forms of insurance as Tenant, Landlord, or Landlord’s mortgagees or ground or primary lessors may reasonably require from time to time. 

 
 All policies shall be issued by insurers that are reasonably acceptable to Tenant and in form reasonably satisfactory from time to time to Tenant.
Landlord will deliver certificates of insurance on the Landlord’s standard form (or, if required by the mortgagees of Landlord, or any ground or primary lessors, certified copies of each such insurance Policy) to Tenant as soon as practicable
after the placing of the required insurance. Notwithstanding any contribution by Tenant to the cost of insurance premiums, as provided herein, or Tenant being named an additional insured. Tenant acknowledges that it has no right to receive any
proceeds from any insurance policies carried by Landlord, except to the extent proceeds remain after the repairs have been completed, which remaining amount shall be credited to reduce Operating Expenses. 
  
 (d)    Tenant will not keep, use, sell, or offer for sale in or upon the Premises, any article which may be
prohibited by any insurance policy periodically in force covering the Building and Building Standard Work. If Tenant’s occupancy or business in or on the Premises, whether or not Landlord has consented to the same, results in any increase in
premiums for the insurance periodically carried by Landlord
 

 
 58 

 
with respect to the Building or the Building Standard Work, Tenant shall pay any such increase in premiums as additional rent within ten (10) days after being billed therefor by Landlord. In
determining whether increased premiums are a result of Tenant’s use of the Premises, a schedule issued by the organization computing the insurance rate on the Building or the Leasehold Improvements showing the various components of such rate
shall be presumptive evidence of the several items and charges which make up such rate. Tenant shall promptly comply with all reasonable requirements of the insurance authority or any present or future insurer relating to the Premises. 

 
 (e)    All such policies shall contain a provision that they shall not be materially changed or cancelled
without at least ten (10) days prior notice to Tenant. 
  
 (f)    All policies covering real or
personal property which either party obtains hereunder shall include a clause or endorsement denying the insurer any rights of subrogation against the other party to the extent rights have been waived by the insured before the occurrence of injury
or loss, if same are obtainable without unreasonable cost, Landlord and Tenant waive any rights of recovery against the other for injury or loss due to hazards covered by policies of insurance containing such a waiver of subrogation clause or
endorsement to the extent of the injury or loss covered thereby. Landlord and Tenant agree to notify the other in the event that either is not able to obtain the required waiver of subrogation. 
  

(g)    Neither party shall because of Section 19 become an insurer within the meaning of the California Insurance Code nor shall they become
liable under the terms of California Insurance Code Section 790.03. Further, to the extent that either party fails to maintain the insurance required under this Lease which such party is obligated to carry, such failure shall automatically be deemed
to result in self-insurance of such insurance requirements and, without implying a waiver of any remedies reserved by either party for such failure, such self-insurance shall be treated for purposes of this paragraph in the same manner as the
insurance policies would have been treated had such policies been carried as provided above, with full waiver of subrogation as applicable. 

 
 59 

  
 Section 22.    Damage or Destruction. 

 
 (a)    In the event the Building is damaged by fire or other perils, and if the damage thereto is such
that the Building can be repaired, reconstructed or restored within a period of one (1) year from the date of the happening of such casualty, which one (1) year period will be extended for Force Majeure occurrences (“Reconstruction
Period”), Landlord shall commence and proceed diligently with the work or repair, reconstruction and restoration and the Lease shall continue in full force and effect; provided, however, the costs for such reconstruction and restoration work
shall be paid by the parties pursuant to Section 22(f) below, and Landlord’s obligation to perform such work hereunder is conditioned upon receipt of any payment required to be made by Tenant pursuant to said Section 22(f). If such work or
repair, reconstruction and restoration is such as to require a period longer than the Reconstruction Period, Landlord either may elect to so repair, reconstruct or restore the Building and the Lease shall continue in full force and effect, or
Landlord may elect not to repair, reconstruct or restore the Building and the Lease shall, in such event, terminate. Under any of the conditions of this Section 22(a), Landlord shall give written notice to Tenant of its intentions within thirty (30)
days from the date of such event of damage or destruction. In the event Landlord elects not to restore the Building, this Lease shall be deemed to have terminated as of the date of such partial destruction. Notwithstanding anything to the contrary
contained in this Section 22(a), if all or any part of the Premises or Building is damaged or destroyed, and Tenant, as a result, cannot be given reasonable use of, and reasonable access to, a substantially repaired and restored Premises, Building
Common Areas and the utilities and services pertaining to the Building and the Premises, within the Reconstruction Period (as may be extended by delays due to Tenant’s failure to pay any costs thereof as required pursuant to Section 22(f)
below), Tenant may terminate this Lease upon written notice to Landlord, given at any time within thirty (30) days following such damage or destruction. 
  
 (b)    Upon any termination of this Lease under any of the provisions of this Section 22, the parties shall be released thereby without further obligation to the other from the date
possession of the Premises is surrendered to Landlord, except for items which have theretofore accrued and are then unpaid. 

 
 60 

  
 (c)    In the event of repair, reconstruction and
restoration by Landlord as herein provided, the rent provided to be paid under this Lease shall be abated as provided in item G of the General Conditions. Tenant shall not be entitled to any compensation or damages for loss in the use of the whole
or any part of the Premises and/or any inconvenience or annoyance occasioned by such damage, repair, reconstruction or restoration. 
  
 (d)    Tenant shall not be released from any of its obligations under this Lease except to the extent and upon the conditions expressly stated in this Section 22. 
  
 (e)    Intentionally Omitted. 
  
 (f)    It is hereby understood that if Landlord is obligated to or elects to repair or restore as herein provided, Landlord shall make repairs to the
Building and the Premises excluding alterations and personal property of Tenant) at Landlord’s cost, without contribution from Tenant (except that as long as the Carnation Company, or its successors, are a limited partner of Landlord and as
long as LPC or its affiliate is the Building Manager, Landlord’s cost shall be deemed to be the sole cost of LPC); provided, however, that notwithstanding any of the above to the contrary, (i) Tenant shall be solely responsible for the costs of
the Building Non-Standard Work and its alterations and personal property, and (ii) if Landlord carried the insurance required of Landlord hereunder and if insurance proceeds received by Landlord are insufficient to cover the entire cost of the
repair and restoration to the Building and Building Standard Work, Tenant shall pay to Landlord on a timely basis fifty percent (50%) of the shortfall. 
  
 (g)    Notwithstanding anything to the contrary contained in this Section 22, Landlord shall not have any obligations whatsoever to repair, reconstruct or restore the Premises when
the damage resulting from any casualty covered under this Section 22 occurs during the last twelve (12) months of the term of this Lease or any extension hereof. 
  
 (h)    The provisions of California Civil Code § 1932, Section 2, and § 1933, Section 4, are hereby waived by Tenant, as Tenant’s rights
are governed by this Section 22. 

 
 61 

  
 Section 23.    Eminent Domain. 

 
 (a)    In case the whole of the Premises, or such part thereof as shall substantially interfere with
Tenant’s use and occupancy thereof, shall be taken for any public or quasi-public purpose by any lawful power or authority by excercise of the right of appropriation, condemnation or eminent domain, or sold to prevent such taking, either party
shall have the right to terminate this Lease effective as of the date possession is required to be surrendered to said authority. Tenant shall not assert any claim against Landlord for any compensation because of such taking, and Landlord shall be
entitled to receive the entire amount of any award without deduction for any estate or interest of Tenant; provided, however, that notwithstanding the foregoing, Tenant is granted the right to recover from the condemning authority, or from Landlord
to the extent such award was received by Landlord, any award or compensation attributable to (i) the taking or purchase of Tenant’s Leasehold Estate (but only during the initial Term), (ii) Tenant’s personal property, chattels, or trade
fixtures and (iii) Tenant’s relocation expenses. In the event the amount of property or the type of estate taken shall not substantially interfere with the conduct of Tenant’s business, Landlord shall be entitled to the entire amount of
the award without deduction for any estate or interest of Tenant, however, Tenant may recover from the condemning authority any award or compensation attributable to the items set forth in the immediately preceding sentence. Landlord shall promptly
proceed to restore the Premises to substantially their same condition prior to such partial taking, and a proportionate allowance shall be made to Tenant for the rent corresponding to the time during which, and to the part of the Premises of which,
Tenant shall be so deprived on account of such taking and restoration. Nothing contained in this Section 23 shall be deemed to give Landlord any interest in any award separately made to Tenant for the taking of personal property and trade fixtures
belonging to Tenant or for moving costs incurred by Tenant in relocating Tenant’s business. 
  
 (b)    In the event of taking of the Premises or any part thereof for temporary use (i) this Lease shall be and remain unaffected thereby and rent shall abate as provided in Item G of the General Conditions, and
(ii) Tenant shall be entitled to receive for itself such portion or portions of any award made for such use with respect to the period of the taking which is within the term, provided that if such taking shall remain in force at the operation or
earlier termination of this Lease, Tenant shall then pay to Landlord a sum equal to
 

 
 62 

 
the reasonable cost of performing Tenant’s obligations under Section 15 with respect to surrender of the Premises and upon such payment shall be excused from such obligations. For purposes
of this Section 23(b), a temporary taking shall be defined as a taking for a period of two hundred seventy (270) days or less. 
  
 Section 24.    Bankruptcy. Intentionally Omitted. 
  
 Section
25.    Defaults and Remedies. 
  
 (a)    The occurrence of any one or
more of the following events shall constitute a default hereunder by Tenant: 
  
 (i)    The abandonment of the Premises by Tenant. Abandonment is herein defined to include, but is not limited to, any absence by Tenant from the Premises for five (5) days or longer while in default.

  
 (ii)    The failure by Tenant to make any payment of rent or additional rent
or any other payment required to be made by Tenant hereunder, as and when due, where such failure shall continue for a period of ten (10) days after written notice thereof from Landlord to Tenant; provided, however, that any such notice shall be in
addition to, and not in lieu of, any notice required under California Code of Civil Procedure § 1161. 
  
 (iii)    The failure by Tenant to observe or perform any of the express or implied covenants or provisions of this Lease to be observed or performed by Tenant, other than as specified in Section 25(a) (i) or (ii)
above, where such failure shall continue for a period of thirty (30) days after written notice thereof from Landlord to Tenant; provided, however, that any such notice shall be in addition to, and not in lieu of, any notice required under California
Code of Civil Procedure § 1161; provided, further, that if the nature of Tenant’s default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant shall
commence such cure within said thirty-day period and thereafter diligently prosecute such cure to completion. 

 
 63 

  
 (iv) Intentionally Omitted. 
  
 (b)    In the event of any such default by Tenant, in addition to any other remedies available to Landlord at law or
in equity, Landlord shall have the immediate option to terminate this Lease and all rights of Tenant hereunder. In the event that Landlord shall elect to so terminate this Lease then Landlord may recover from Tenant: 
  
 (i)    the worth at the time of award of any unpaid rent which had been earned at the time of such
termination; plus 
  
 (ii)    the worth at the time of award of the amount by
which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 
  

(iii)    the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award
exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus 
  
 (iv)    any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform his obligations under this Lease or which in the ordinary course of things
would be likely to result therefrom. 
  
 As used in Sections 25(b)(i) and (ii) above, the “worth at the time of
award” is computed by allowing interest at the maximum rate permitted by law per annum. As used in Section 25(b)(iii) above, the “worth at the time of award” is computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of award plus one percent (1%). 
  
 (c)    In the
event of any such default by Tenant, Landlord shall also have the right, with or without terminating this Lease, to re-enter the Premises and remove all persons and property from the Premises; such property may be removed and stored in a public
warehouse or elsewhere at the cost of and for the account of Tenant for such period of time as may be required by applicable law, after which time Landlord may dispose of such property in accordance with applicable law. No re-entry or taking
possession of the Premises by Landlord 

 
 64 

 
pursuant to this Section 25(c) shall be construed as an election to terminate this Lease, unless a written notice of such intention is given to Tenant, or unless the termination thereof be
decreed by a court of competent jurisdiction. 
  
 (d)    All rights, options and remedies of
Landlord contained in this Lease shall be construed and held to be cumulative, and no one of them shall be exclusive of the other, and Landlord shall have the right to pursue any one or all of such remedies or any other remedy or relief which may be
provided by law, whether or not stated in this Lease. No waiver of any default of Tenant hereunder shall be implied from any exceptance by Landlord of any rent or other payments due hereunder, or any omission by Landlord to take any action on
account of such default if such default persists or is repeated, and no express waiver shall affect defaults other than as specified in said waiver. The consent or approval of Landlord to or of any act by Tenant requiring Landlord’s consent or
approval shall not be deemed to waive or render unnecessary Landlord’s consent to or approval of any subsequent similar acts by Tenant. No waiver of any default of Landlord hereunder shall be implied from any payments made by Tenant of any
rents or other payments due hereunder or by any omission of Tenant to take any action on account of such default. If such default persists or is repeated, no express waiver shall affect defaults other than as specified in said waiver. 

 
 (e)    Landlord shall not be in default in the performance of any obligation required to be performed by
Landlord under this Lease, unless Landlord has failed to perform such obligation within thirty (30) days after the receipt of notice from Tenant specifying in detail Landlord’s failure to perform; provided, however, that if the nature of
Landlord’s obligation is such that more than thirty (30) days are required for its performance, then Landlord shall not be deemed in default if it commences such performance within thirty (30) days and thereafter diligently pursues the same to
completion. Upon any such default by Landlord, Tenant may exercise any of its rights provided in law or at equity, subject to the limitations on liability set forth in Section 49 below. 
  
 Section 26.    Assignment and Subletting. Tenant shall not voluntarily assign or encumber its interest in this Lease or in the Premises, or
sublease all or any part of the Premises, or allow any other person or entity to occupy or use all or any part of the Premises, without first obtaining Landlord’s prior written consent, which shall not be
 

 
 65 

 
unreasonably withheld. Any assignment, encumbrance or sublease without Landlord’s prior written consent shall be voidable, at Landlord’s election. Tenant shall have the right at any
time to sublease all or any portion of the Premises upon thirty (30) days’ prior notice to Landlord, together with the information described below, but without Landlord’s consent or approval, to any related entity or affiliate of Tenant,
whether by merger or consolidation, or any successor corporation. No consent to an assignment, encumbrance, or sublease shall constitute a further waiver of the provisions of this Section 26, nor release or relieve Tenant from any of its obligations
hereunder or under this Lease. Tenant shall notify Landlord in writing of Tenant’s intent to assign, encumber, or sublease this Lease, the name of the proposed assignee or sublessee, information concerning the financial responsibility of the
proposed assignee or sublessee and the terms of the proposed assignment or subletting, and Landlord shall, within thirty (30) days of receipt of such written notice and any additional information requested by Landlord concerning the proposed
assignee’s or sublessee’s financial responsibility, elect one of the following: 
  
 (a)    Consent to such proposed assignment, encumbrance or sublease; or 
  
 (b)    Refuse to give such consent, which refusal shall be on reasonable grounds. 
  
 Without limiting
Landlord’s grounds for disapproval, Landlord’s disapproval shall be deemed reasonable if it is based on Landlord’s analysis of (a) the proposed assignee’s or sublessee’s credit, character and business or professional
standing, (b) whether the assignee’s or sublessee’s use and occupancy of the Premises will be consistent with Section 1(u) and Section 8 of this Lease and whether the assignee’s or sublessee’s proposed intensity of use is
consistent with that shown by Tenant and/or (c) whether the proposed assignee or sublessee is a then-existing or prospective tenant of the Building. Subject to the foregoing, Tenant shall have the right at any time to assign or sublease all or any
portion of the Premises to any assignee or subtenant of a type and quality suitable for a comparable first-class office building, subject to Landlord’s consent, which consent shall not be unreasonably withheld, conditioned or delayed. During
the initial twenty (20) year term, Tenant may retain one hundred percent (100%) of any “Profit”, as defined below, derived from a permitted assignment or sublease; after the initial twenty (20) year term, any such Profits, as defined
below, shall be shared 

 
 66 

 
equally by Landlord and Tenant. Except as provided in Section 25 to the contrary, Landlord shall not have the ability to recapture the Premises or any portion of the Premises during the initial
or any extended term of the Lease. 
  
 “Profits”, as that term is used in the Lease, shall mean the gross
revenue received from the assignee or sublessee during the sublease term—or during the assignment, less: 
  
 (a)    The gross revenue paid to Landlord by Tenant during the period of the sublease term or during the assignment; 
  
 (b)    The gross revenue paid to Landlord by Tenant for all days the portion of the Premises in question was vacated from the date that
Tenant first vacated that portion of the Premises until the date the assignee or sublessee was to pay rent; 
  
 (c)    Any improvement allowance or other economic concession (planning allowance, moving expenses, etc.) paid by Tenant to sublessee or assignee; 
  
 (d)    Broker’s commission; 
  
 (e)    Attorneys’ fees; 
  
 (f)    Lease takeover payments; and 
  
 (g)    Unamortized cost of initial and subsequent improvements to the Premises by Tenant. 
  
 Landlord agrees that upon the request of Tenant, Landlord shall provide approved subtenants subleasing a full floor or more, or assignees of Tenant previously approved by Landlord, for subleases or assignments at rental rates equal
to or higher than the amount of rents paid by Tenant, with a recognition agreement from Landlord agreeing to honor the sublease or Lease (in the case of an assignment) as a direct sublease or lease with Landlord even if Tenant defaults under the
Lease: provided, however, that nothing herein or in any such recognition agreement shall relieve Tenant of its obligations under this Lease. Landlord shall receive reasonable attorneys’ fees for the recognition agreement and for reviewing
assignments and subleases. 

 
 67 

  
 Section 27.    Quiet Enjoyment. Landlord covenants and
agrees with Tenant that upon Tenant paying the rent required under this Lease and paying all other charges and performing all of the covenants and provisions aforesaid on Tenant’s part to be observed and performed under this Lease, Tenant shall
and may peaceably and quietly have, hold and enjoy the Premises in accordance with this Lease. 
  
 Section
28.    Subordination. Nothing in this Section 28 shall permit this Lease to be cancelled or terminated as long as Tenant does not default pursuant to Section 25. Without the necessity of any additional document being
executed by Tenant for the purpose of effecting a subordination, and at the election of Landlord or any first mortgagee with a lien on the Building or any ground lessor with respect to the Building, this Lease shall be subject and subordinate at all
times to: (a) all ground leases or underlying leases which may now exist or hereafter be executed affecting the Building or the land upon which the Building is situated or both, and (b) the lien of any mortgage or deed of trust which may now exist
or hereafter be executed in any amount for which the Building, land, ground leases or underlying leases, or Landlord’s interest or estate in any of said items is specified as security. Notwithstanding the foregoing, Landlord shall have the
right to subordinate or cause to be subordinated any such ground leases or underlying leases or any such liens to this Lease. In the event that any ground lease or underlying lease terminates for any reason or any mortgage or deed of trust is
foreclosed or a conveyance in lieu of foreclosure is made for any reason, Tenant shall, if requested by the ground lessor, mortgagee or beneficiary, as applicable, attorn to and become the Tenant of the successor in interest to Landlord, and in such
event Tenant’s right to possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and all other amounts required to be paid to Landlord pursuant to the terms hereof and observe and
perform all of the provisions of this Lease, unless the Lease is otherwise terminated pursuant to its terms. Tenant covenants and agrees to execute and deliver, upon demand by Landlord and in the form requested by Landlord, any additional documents
evidencing the priority or subordination of this Lease with respect to any such ground leases or underlying leases or the lien of any such mortgage or deed of trust. 

 
 68 

  
 Section 29.    Estoppel Certificate. 

 
 (a)    Within fifteen (15) calendar days following any written request which Landlord may make from time
to time, Tenant shall execute and deliver to Landlord a statement, in a form substantially similar to the form of Exhibit “E” attached hereto, certifying (i) the Commencement Date of this Lease; (ii) the fact that this Lease is
unmodified and in full force and effect (or, if there have been modifications hereto, that this Lease is in full force and effect, as modified, and stating the date and nature of such modifications); (iii) the date to which the rental and other sums
payable under this Lease have been paid; (iv) the fact that there are no current defaults under this Lease by either Landlord or Tenant, except as specified in Tenant’s statement; and (v) such other matters requested by Landlord. Landlord and
Tenant intend that any statement delivered pursuant to this Section 29 may be relied upon by any mortgagee, beneficiary, purchaser or prospective purchaser of the Building or any interest therein. 
  
 (b)    Tenant’s failure to deliver such statement within such time shall be conclusive upon Tenant (i) that this
Lease is in full force and effect without modification, except as may be represented by Landlord, (ii) that there are no uncured defaults in Landlord’s performance, and (iii) that not more than one (1) month’s rent has been paid in
advance, except as provided in Section 36 hereof. 
  
 (c)    Landlord shall, at any time and
from time to time, within fifteen (15) calendar days following notice by Tenant, execute, acknowledge and deliver to Tenant a statement in writing prepared by Tenant and edited by Landlord, as appropriate, certifying that this Lease is unmodified
and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the modifications), the dates to which Tenant has paid rent, adjustments to rent, and other charges in advance, if
any, stating whether or not to the best knowledge of Landlord, Tenant is in default in the performance of any covenant, agreement or condition contained in this Lease and, if so, specifying each such default of which Landlord may have knowledge, or
containing any other information or certifications which reasonably may be requested by Tenant, any proposed assignee or sublessee of Tenant, or any proposed lender of Tenant. Any such statement, delivered pursuant to this subsection, may be relied
upon by any proposed assignee or sublessee or any proposed lender of Tenant. Landlord’s failure to deliver such statement within such time shall be conclusive 

 
 69 

 
upon Landlord (i) that this Lease is in full force and effect without modification, except as represented by Tenant, and (ii) there are no uncured defaults in Tenant’s performance.

  
 Section 30.    Building Planning. Intentionally Omitted. 
  
 Section 31.    Rules and Regulations. Subject to item F of the General Conditions Section, Tenant shall
faithfully observe and comply with the “Rules and Regulations”, a copy of which is attached hereto and marked Exhibit “F”, and all reasonable and non-discriminatory modifications thereof and additions thereto from time to
time put into effect by Landlord. Landlord shall endeavor to enforce the Rules and Regulations reasonably and without discrimination. Landlord shall not be responsible to Tenant for the violation or non-performance by any other tenant or occupant of
the Building of any of said Rules and Regulations. 
  
 Section 32.    Conflict of Laws.
This Lease shall be governed by and construed pursuant to the laws of the State of California. 
  
 Section
33.    Successors and Assigns. Except as otherwise provided in this Lease, all of the covenants, conditions and provisions of this Lease shall be binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors and assigns. 
  
 Section
34.    Surrender of Premises. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Landlord, operate as an assignment to it of any
or all subleases or subtenancies. Upon the expiration or termination of this Lease, Tenant shall peaceably surrender the Premises and all alterations and additions thereto broom-clean, in good order, repair and condition, reasonable wear and tear
excepted, and shall comply with the provisions of Sections 14(g) and 14(h). The delivery of keys to any employee of Landlord or to Landlord’s agent or any employee thereof shall not be sufficient to consitute a termination of this Lease or a
surrender of the Premises. 
  
 Section 35.    Professional Fees. 
  
 (a)    In the event that Landlord should bring suit for the possession of the Premises, for the recovery of
 

 
 70 

 
any sum due under this Lease, or because of the breach of any provisions of this Lease, or for any other relief against Tenant hereunder, or should either party bring suit against the other with
respect to matters arising from or growing out of this Lease, then all costs and expenses, including, without limitation, its actual professional fees such as appraisers’, accountants’ and attorneys’ fees, incurred by the prevailing
party therein, shall be paid by the other party, which obligation on the part of the other party shall be deemed to have accrued on the date of the commencement of such action and shall be enforceable whether or not the action is prosecuted to
judgment. 
  
 (b)    Intentionally Omitted. 
  
 Section 36.    Performance by Tenant. Tenant acknowledges that the late payment by Tenant to Landlord of any
sums due under this Lease will cause Landlord to incur costs not contemplated by this Lease, the exact amount of such cost being extremely difficult and impractical to fix. Such costs include, without limitation, processing and accounting charges,
and late charges that may be imposed on Landlord by the terms of any encumbrance and note secured by an encumbrance covering the Premises or the Building of which the Premises are a part. Therefore, if any monthly installment of Annual Basic Rent is
not received by Landlord by the date when due, or if Tenant fails to pay any other sum of money due hereunder and such failure to pay any other sum continues for two (2) days after notice thereof by Landlord, Tenant shall pay to Landlord, as
additional rent, the product of one quarter of one percent (.25%) times the overdue amount as a late charge, plus any late charges or penalties Landlord is required to pay to its Lender, without notice to Tenant, provided that Landlord has
previously notified Tenant by notice of the terms and conditions pertaining to such lender-related late charges or penalties. Such overdue amount shall also bear interest, as additional rent, at the Interest Rate from the date the monthly
installment of Annual Basic Rent or other sum of money is due until the date of payment to Landlord. Landlord’s acceptance of any late charge or interest shall not constitute a waiver of Tenant’s default with respect to the overdue amount
or prevent Landlord from exercising any of the other rights and remedies available to Landlord under this Lease or any law now or hereafter in effect. 
  
 Section 37.    Mortgagee and Senior Lessor Protection. No act or failure to act on the part of Landlord which would entitle Tenant under the terms of this Lease, or by
 

 
 71 

 
law, to be relieved of Tenant’s obligations hereunder or to terminate this Lease, shall result in a release of such obligations or a termination of this Lease, unless (a) Tenant has given
notice by registered or certified mail to any beneficiary of a deed of trust or mortgage covering the Premises and to the Lessor under any master or ground lease covering the Building, the Site or any interest therein whose identity and address
shall have been furnished to Tenant, and (b) Tenant offers such beneficiary, mortgagee or lessor a reasonable opportunity to cure the default, including time to obtain possession of the Premises by power of sale or judicial foreclosure, if such
should prove necessary to effect a cure. 
  
 Section 38.    Definition of Landlord. The
term “Landlord” as used in this Lease, so far as covenants or obligations on the part of Landlord are concerned, shall be limited to mean and include only the owner or owners, at the time in question, of the fee title to, or a
lessee’s interest in a ground lease of the Site or master lease of the Building. In the event of any transfer, assignment or other conveyance or transfers of any such title or interest, Landlord herein named (and in case of any subsequent
transfers or conveyances, the then grantor) shall be automatically freed and relieved from and after the date of such transfer, assignment or conveyance of all liability with respect to the performance of any covenants or obligations on the part of
Landlord contained in this Lease thereafter to be performed and, without further agreement, the transferee of such title or interest shall be deemed to have assumed and agreed to observe and perform any and all obligations of Landlord hereunder,
during its ownership of the Premises. Landlord may transfer its interest in the Premises without the consent of Tenant, except as provided to the contrary in that certain Eight Hundred North Brand Boulevard Limited Partnership Agreement (or any
comparable partnership agreement between Landlord and Tenant) executed concurrently with this Lease, and such transfer or subsequent transfer shall not be deemed a violation on Landlord’s part of any of the terms and conditions of this Lease.

  
 Section 39.    Waiver. The failure of Landlord to seek redress for violation of, or to
insist upon strict performance of, any term, covenant or condition of this Lease or the Rules and Regulations attached hereto as Exhibit “F”, shall not be deemed a waiver of such violation or prevent a subsequent act which would
have originally constituted a violation from having all the force and effect of an original violation, nor shall the failure of Landlord to enforce any of said Rules and Regulations against any other tenant of the
 

 
 72 

 
Building be deemed a waiver of any such Rule or Regulation, nor shall any custom or practice which may become established between the parties in the administration of the terms hereof be deemed a
waiver of, or in any way affect, the right of Landlord to insist upon the performance by Tenant in strict accordance with said terms. The subsequent acceptance of rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach
by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular rent so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such rent. Failure of
Tenant to seek redress for violation of, or to insist upon the strict performance of, any term, covenant or condition of this Lease or the Rules and Regulations attached hereto, shall not be deemed a waiver of such violation or prevent a subsequent
act which would have originally constituted a violation from having all the force and effect of the original violation, nor shall any custom or practice which may become established between the parties in the administration of the terms hereof be
deemed a waiver of, or in any way affect, the right of Tenant to insist upon the performance by Landlord of its obligations in strict accordance with said terms. Any payment of rents or other sums hereunder by Tenant shall not be deemed a waiver of
any preceding breach by Landlord of any term, covenant or condition of this Lease, regardless of Tenant’s knowledge of such preceding breach at the time of payment of such rent or other sums. 
  
 Section 40.    Identification of Tenant. Intentionally Omitted. 
  
 Section 41.    Parking and Transportation. Tenant shall have the option, upon thirty (30) days’ prior
notice to Landlord, to rent parking privileges for use by Tenant and Tenant’s employees (including independent contractors who are expected to work in the Building on a regular basis), twenty-four (24) hours per day, seven (7) days per week in
the parking facility adjacent to the Building at the rate of three and one-half (3.5) non-tandem parking privileges per one thousand (1,000) square feet of rentable space initially leased by Tenant. For any parking privilege leased by Tenant over
250,000 rentable square feet, Tenant shall have the option, upon the same terms and conditions as set forth above, to rent three (3) non-tandem parking privileges per one thousand (1,000) square feet of rentable space. Tenant shall have the right to
specify the location of its reserved parking spaces, and the Tenant’s ratio of standard size cars to compact cars shall be the same as designated by Landlord for other tenants
 

 
 73 

 
in the Building. Within the ratios of parking referenced above, Tenant shall be permitted one hundred (100) reserved parking privileges at a location designated by Tenant. The parking rate shall
be equal to $40.00 per parking privilege per month for all parking provided to Tenant for the first five (5) years of the Term of the Lease. At the beginning of the sixth (6th) year of the Lease Term and on each anniversary thereafter, the parking
rates shall be increased to the lesser of: (i) the prevailing market rental rate for parking, provided by comparable office buildings in the vicinity of the Building, or (ii) a five percent (5%) increase, cumulative annually. Other tenant’s
parking privileges shall not be used in Tenant’s reserved parking area. At any time during the Lease Term, Tenant may decrease or increase the number of parking privileges, if Tenant gives Landlord thirty (30) days prior written notice;
provided, however, that in no event shall Tenant’s parking privileges exceed the ratios set forth above. Notwithstanding the foregoing limit on parking charges, the parking charges for visitors shall be at the prevailing market rates determined
by Landlord from time to time; however, Landlord shall provide a validation system to Tenant which will allow Tenant to purchase validations from time to time from Landlord and then make such validations available to the clients, customers, guests
and visitors of Tenant. The parking structure shall have security comparable to security provided by other first-class quality office building parking structures. Tenant shall comply with the Parking Rules and Regulations attached hereto as
Exhibit “J” and incorporated herein by this reference and all reasonable modifications thereto which are promulgated from time to time by the Landlord which are not incompatible with the foregoing. 
  
 Section 42.    Office and Communications Services. 
  
 (a)    Landlord has advised Tenant that certain office and communications services may be offered to tenants of the Building by a concessionaire under
contract to Landlord (“Provider”). Tenant shall be permitted to contract with Provider for the provision of any or all of such services on such terms and conditions as Tenant and Provider may agree. Tenant shall also be permitted to obtain
office and communications services from any other reputable person or entity in the business of providing the same (herein called an “Alternate Provider”), provided that Landlord shall not be required thereby to make any alterations in or
to any part of the Building or the use of any facilities or equipment of the Building, and provided further that no such services provided by an Alternate Provider, or any equipment or facilities used
 

 
 74 

 
or to be used in connection therewith, shall be incompatible in any respect with, or shall interfere with or otherwise impair or adversely affect, the operation, reliability or quality of the
Building systems or any services, equipment or facilities used or operated by Provider or any tenant in the Building. 
  
 (b)    Tenant acknowledges and agrees that: (i) Landlord has made no warranty or representation to Tenant with respect to the availability of any such services, whether provided by Provider or any Alternate
Provider, or the quality, reliability or suitability thereof; (ii) neither Provider nor any Alternate Provider is acting as the agent or representative of Landlord in the provision of such services, and Landlord shall have no liability or
responsibility for any failure or inadequacy of such services, or any equipment or facilities used in the furnishing thereof, or any act or omission of Provider or any Alternate Provider, or their agents, employees, representatives, officers or
contractors; (iii) Landlord shall have no responsibility or liability for the installation, alteration, repair, maintenance, furnishing, operation, adjustment or removal of any such services, equipment or facilities; and (iv) any contract or other
agreement between Tenant and Provider or any Alternate Provider shall be independent of this Lease, the obligations of Tenant hereunder, and the rights of Landlord hereunder, and, without limiting the foregoing, no default or failure of Provider or
any Alternate Provider with respect to any such services, equipment or facilities, or under any contract or agreement relating thereto, shall have any effect on this Lease or give to Tenant any offset or defense to the full and timely performance of
its obligations hereunder, or entitle Tenant to any abatement of rent or additional rent or any other payment required to be made by Tenant hereunder, or constitute any actual or constructive eviction of Tenant, or otherwise give rise to any claim
of any nature against Landlord. 
  
 Section 43.    Terms and Headings. The words
“Landlord” and “Tenant” as used herein shall include the plural as well as the singular. Words used in any gender include other genders. If there is more than one Tenant, i.e. if two or more persons or entities are jointly
referred to in this Lease as “Tenant”, the obligations hereunder imposed upon Tenant shall be joint and several. The paragraph headings of this Lease are not a part of this Lease and shall have no effect upon the construction or
interpretation of any part hereof. 

 
 75 

  
 Section 44.    Examination of Lease. Submission of
this instrument for examination or signature by Tenant does not constitute a reservation of or option for a Lease, and it is not effective as a Lease or otherwise until execution by and delivery to both Landlord and Tenant. 
  
 Section 45.    Time. Time is of the essence with respect to the performance of every provision of this Lease in
which time or performance is a factor. 
  
 Section 46.    Prior Agreement; Amendments.
This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreement or understanding, oral or written, express or implied, pertaining to any such matter shall be
effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. The parties acknowledge that all prior agreements,
representations and negotiations are deemed superseded by the execution of this Lease to the extent they are not incorporated herein. 
  
 Section 47.    Separability. Any provision of this Lease which shall prove to be invalid, void or illegal in no way affects, impairs or invalidates any other provision hereof, and such other
provisions shall remain in full force and effect. 
  
 Section 48.    Recording. Neither
Landlord nor Tenant shall record this Lease nor a short form memorandum thereof without the consent of the other, and, if such recording occurs, it shall be at the sole cost and expense of the party requesting the recording, including any
documentary transfer taxes or other expenses related to such recordation. 
  
 Section
49.    Limitation on Liability. The obligations of Landlord and LPC under this Lease do not constitute personal obligations of the individual partners, directors, officers or shareholders of Landlord or LPC, and Tenant
shall not seek recourse against the individual partners, directors, officers or shareholders of Landlord or LPC or any of their personal assets for satisfaction of any liability in respect to this Lease. Notwithstanding the foregoing, absent fraud,
willful misconduct, or bad faith, Landlord’s liability shall be limited to Landlord’s equity interest in the Project. 
  
 Section 50.    Riders. Clauses, plats and riders, if any, signed by Landlord and Tenant and affixed to this Lease, are a part hereof. 

 
 76 

  
 Section 51.    Signs. The rights and obligations of
Landlord and Tenant are set forth in item H of the General Conditions Section. 
  
 Section
52.    Modification for Lender. If, in connection with obtaining construction, interim or permanent financing for the Building, the lender shall request reasonable modifications in this Lease as a condition to such
financing, Tenant will not unreasonably withhold, delay or defer its consent thereto, provided that such modifications do not increase the obligations of Tenant hereunder or materially and adversely affect the leasehold interest hereby created or
Tenant’s rights hereunder. 
  
 Section 53.    Accord and Satisfaction. No payment by
Tenant or receipt by Landlord of a lesser amount than the rent payment herein stipulated shall be deemed to be other than on account of the rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as
rent, be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such rent, or pursue any other remedy provided in this Lease. Tenant agrees that each of
the foregoing covenants and agreements shall be applicable to any covenant or agreement either expressly contained in this Lease or imposed by any statute or at common law. 
  
 Section 54.    Financial Statements. At any time during the term of this Lease, Tenant shall, upon ten (10) days’ prior written notice from
Landlord, provide Landlord with a current financial statement and financial statements of the two (2) years prior to the current financial statement year, but only to such extent that such information is available to the general public or is made
available to any of Tenant’s lenders. Such statement shall be prepared in accordance with generally accepted accounting principles, and, if such is the normal practice of Tenant, shall be audited by an independent certified public accountant.
Provided, however, such information shall only be requested in connection with a sale or refinancing of the Building and shall only be disclosed if each recipient of such information agrees to keep the information confidential. 

 
 Section 55.    Tenant as Corporation. Tenant and the persons executing this Lease on behalf of
Tenant represent and warrant that the individuals executing this Lease on Tenant’s behalf are duly authorized to execute and deliver this Lease on its behalf in accordance with a duly adopted resolution of the
 

 
 77 

 
board of directors of Tenant, a copy of which is to be delivered to Landlord on execution hereof, and in accordance with the By-Laws of Tenant. 
  
 Section 56.    No Partnership or Joint Venture. Notwithstanding the fact that Landlord and Tenant are partners
under a separate partnership agreement, nothing in this Lease shall be deemed to constitute Landlord and Tenant as partners or joint venturers. It is the express intent of the parties hereto that their relationship with regard to this Lease be and
remain that of landlord and tenant. 
  
 Section 57.    Option to Extend. Unless the Lease
has been terminated as a result of Tenant’s default or other causes specified in the Lease, or if not terminated, so long as Tenant is not in default. Landlord hereby grants Tenant four (4) options to extend the term of this Lease for an
additional five (5) year term each for one or more contiguous, full floors of the Premises then under lease by Tenant at the “Fair Market Rental Rate”, as defined in Section 5, in existence at the beginning of each renewal period. Landlord
shall notify Tenant of Tenant’s right to renew fourteen (14) months prior to the scheduled commencement of each renewal period. The options must then be exercised by written notice received by Landlord twelve (12) months prior to the expiration
of the term, or any extensions provided herein, and the option shall expire if not properly exercised within twelve (12) months prior to the expiration of the term, or any extensions provided herein. Provided that Tenant has properly exercised the
option, the term of this Lease shall be extended by the option term of five (5) years and all terms, covenants and conditions of the Lease shall remain unmodified and in full force and effect except that the Annual Basic Rent, as provided for
elsewhere in this Lease, shall be modified as set forth in Section 5. The options to extend set forth herein are not personal to Tenant, but may be assigned to any assignee or subtenant of Tenant. In addition, the exercise of the options shall have
no effect on any sign or identity rights provided to Tenant herein, so long as Tenant leases at least 50, 000 rentable square feet in the Building. If Tenant fails to lease 50, 000 rentable square feet, the sign rights and controls provided to
Tenant in Item H of the General Conditions regarding the Project and Building shall terminate. 
  
 Section
58.    Option to Expand. In addition to the initial Premises, including any Hold Space added to the Tenant’s Premises, Tenant shall have the following Options to Expand in full floor increments contiguous to the
Premises as follows:
 

 
 78 

  
 (A)    First Option Space. Tenant may
add to the Premises one full floor space, (“First Option Space”) contiguous to the portion of the Premises consisting of the upper floors of the Building for a term commencing on the Delivery Date of the First Option Space which shall be
the third annual anniversary of the Commencement Date upon the terms and conditions set forth herein, only if: 
  
 (i)    Tenant delivers to Landlord at least twelve (12) months prior to said third annual anniversary of the Commencement Date written notice exercising its option to lease the First Option Space, and

  
 (ii)    Tenant is not in default at the time Tenant exercises its first
option or at the commencement of the lease of the First Option Space. 
  
 (B)    Second Option Space. Tenant may add to the Premises one or two full floor space (“Second Option Space”) contiguous to the portion of the Premises consisting of the upper floors of the
Building for a term commencing on the Delivery Date of the Second Option Space which shall be the fifth annual anniversary of the Commencement Date, upon the terms and conditions set forth herein, only if: 
  
 (i)    Tenant delivers to Landlord at least twelve (12) months prior to said fifth annual anniversary
of the Commencement Date written notice exercising its option to lease the Second Option Space, and 
  
 (ii)    Tenant is not in default at the time Tenant exercises its second option or at the commencement of the lease of the Second Option Space. 
  
 (C)    Third Option Space. Tenant may add to the Premises one full floor space (“Third Option Space”) contiguous to the
portion of the Premises consisting of the upper floors of the Building for a term commencing on the Delivery Date of the Third Option Space which shall be the eighth annual anniversary of the Commencement Date, upon the terms and conditions set
forth herein, only if: 
  
 (i)    Tenant delivers to Landlord at least twelve
(12) months prior to said eighth annual anniversary of the Commencement Date written notice
 

 
 79 

 
exercising its option to lease the Third Option Space, and 
  
 (ii)    Tenant is not in default at the time Tenant exercises its third option or at the commencement of the lease of the Third Option Space, and 
  
 (iii)    The Third Option Space is not available if Tenant exercised the second option for both full floors constituting the Second
Option Space, but is available if Tenant does not exercise the Second Option Space at all or if Tenant exercises the Second Option Space as to only one floor. 
  
 (D)    Fourth Option Space. Tenant may add to the Premises one or two full floor space (“Fourth Option Space”)
contiguous to the portion of the Premises consisting of the upper floors of the Building for a term commencing on the Delivery Date of the Fourth Option Space which shall be the tenth annual anniversary of the Commencement Date, upon the terms and
conditions set forth herein, only if: 
  
 (i)    Tenant delivers to Landlord at
least twelve (12) months prior to said tenth annual anniversary of the Commencement Date written notice exercising its option to lease the Fourth Option Space, and 
  
 (ii)    Tenant is not in default at the time Tenant exercises its fourth option or at the Commencement of the lease of the Fourth Option
Space. 
  
 (E)    Fifth Option Space. Tenant may add to the Premises one
or two full floor space (“Fifth Option Space”) contiguous to the portion of the Premises consisting of the upper floors of the Building for a term commencing on the Delivery Date of the Fifth Option Space which shall be the fifteenth
annual anniversary of the Commencement Date, upon the terms and conditions set forth herein, only if: 
  
 (i)    Tenant delivers to Landlord at least twelve (12) months prior to said fifteenth annual anniversary of the Commencement Date written notice exercising this option to lease the Fifth Option Space, and
 

 
 80 

  
 (ii)    Tenant is not in default at the time
Tenant exercises its fifth option or at the commencement of the lease of the Fifth Option Space. 
  
 (F)    Terms. The following terms shall apply to each option space: 
  
 (i)    If Tenant elects to exercise its Hold Space Option, appropriate adjustments of future options shall be made so that each time Tenant exercises an option, the floor covered by that option shall be
contiguous to the Premises being leased by Tenant; 
  
 (ii)    Annual Basic Rent
and all other economic terms for the option space shall be equal to and/or determined by the Fair Market Rental Rate definition set forth in Section 5(b) (as modified in Section 58(H) below), as of the date on which the option space is to be added
to the Premises; 
  
 (iii)    Tenant shall take the option space “as
is”, but in broom clean condition with all improvements to be Tenant’s responsibility at Tenant’s cost, subject to Landlord contributing an allowance as provided in Section 58(H) below and Landlord using its best efforts to cause the
vacated tenant to remove all of its property, installations and alterations which it shall, under its lease, be required to remove and which Tenant shall request to be removed; 
  
 (iv)    Landlord, shall, four (4) months prior to the exercise dates of each expansion option, provide Tenant with a written notice that
an Option to Expand is to become available for exercise. The space covered by each Option to Expand shall be delivered to Tenant on the appropriate Delivery Date for each Option to Expand. Landlord may, however, deliver the option space up to
one-half (1/2) year earlier and up to one (1) year later (six (6) months later with respect to the Third Option Space) than the Delivery Dates set forth above if Landlord notifies Tenant of its intention to do so at least six (6) months prior to the
exercise date for each Option to Expand; 
  
 (v)    Each of Tenant’s
remaining options shall remain in effect even though Tenant may, at its discretion, decide not to exercise any single option; 

 
 81 

  
 (vi)    All other terms and conditions of
this Lease (including payment of Operating Expenses) shall apply to the Option Space, except as otherwise set forth herein. 
  
 (G)    Documentation. Landlord and Tenant shall execute and deliver appropriate documentation to evidence the addition of any option space to the Premises under the terms and
conditions of this Lease relating thereto. 
  
 (H)    Tenant Allowance.
All Option Space covered by this option shall be delivered to Tenant in “as is” condition as provided in Section F(iii) above with a tenant allowance as set forth in Section 5(b); provided, however, that if all or any part of any option
space has never been improved with tenant improvements for occupancy by another tenant (“Non-Improved Option Space”), the following provisions of this subsection shall apply to all or part of such Non-Improved Option Space. Such
Non-Improved Option Space shall be prepared for Tenant’s occupancy in accordance with the applicable terms and provisions of the Work Letter Agreement (including the performance by Landlord of Base Building work with respect to such space).
Submission of Tenant’s plans and drawings and Tenant’s move in to such space shall be accomplished in the same manner and on the same terms and conditions as those prescribed for the Premises in the Work Letter Agreement. Without limiting
the foregoing, Landlord shall pay to Tenant, in accordance with the comparable terms and provisions of the Work Letter Agreement, an allowance for the construction of Leasehold Improvements in connection with such Non-Improved Option Space;
provided, however, that the amount of the allowance per rentable square foot of such Non-Improved Option Space shall be equal to the greater of $36.90 per rentable square foot or the allowance determined under Section 5(b), which shall be paid to
Tenant in accordance with the comparable terms of the provisions of the Work Letter Agreement. 
  
 (I)    Delivery. Upon the exercise by Tenant of an option as aforesaid, Landlord shall deliver possession of the Option Space in question on the applicable Delivery Dates for such space which shall be the
dates set forth in Sections 58(A) through 58(E) above, respectively, or Landlord may deliver such space within the period of six (6) months prior or twelve (12) months after (except with respect to the Third Option Space, which shall be delivered
within the period six (6) months prior or six
 

 
 82 

 
(6) months after) the applicable Delivery Date. If the Delivery Date is to be designated by Landlord as any date other than the Delivery Dates set forth above, but within the aforestated time
periods, Landlord may change the Delivery Date to any date within the applicable time period if Landlord gives Tenant at least six (6) months advance written notice of the new date of delivery of the space in question. Landlord shall not lease any
portion of the Option Space to any other tenant for a term (including renewal terms) which extends beyond the date such Option Space is to be added to the Premises if the option in respect thereto should be timely exercised by Tenant. If any tenant
under a lease holds over beyond the date for vacating such option space to be occupied by Tenant, Landlord agrees to take whatever steps are necessary, including legal action, to remove such tenant, if such holding over conflicts with Tenant’s
election. All option space shall be contiguous to the Premises and shall be rolling so that in the event the first option is not exercised, the second option shall roll to the space covered by the first option causing all option space to be
contiguous to the Premises. 
  
 (J)    Not Personal. The Options to Expand
are not personal to Tenant and shall inure to the benefit of the assignees or full-floor subtenants of Tenant. 
  
 (K)    Not Forfeitable. No failure by Tenant to exercise any prior option shall preclude Tenant from exercising a subsequent option. 
  
 Section 59.    First Right to Lease. After the Commencement Date, Landlord agrees not to lease any unleased rentable space in the Building
(“First Right Space”) until five (5) business days following Tenant’s receipt of a Special Notice. Accordingly, after the Commencement Date, whenever Landlord desires to lease any of the First Right Space, Landlord shall send
Tenant a Special Notice setting forth its desire to lease all or a portion of the First Right Space. The Special Notice shall contain the following information (“terms”): 
  

	 	A.
	 
	First Right Space description. 
 

  

	 	B.
	 
	Rental. 
 

  

	 	C.
	 
	Operating Expense Adjustment Allowance. 
 

 
 83 

  

	 	D.
	 
	CPI increases, if any. 
 

  

	 	E.
	 
	Rent Credits or Free Rent (if any). 
 

  

	 	F.
	 
	Condition of Premises (“as is” or with tenant improvement allowance or building standard items or a combination thereof). 

  

	 	G.
	 
	Time to Construct Improvements prior to Commencement of Rent. 
 

  

	 	H.
	 
	Other Economic Concessions (if any). 
 

  

	 	I.
	 
	Length of Lease, which shall be for a period of time coterminous with the Lease. 
 

  
 Tenant may, upon notice delivered by Tenant and received by Landlord within said five (5) business day period (“Period”), elect to lease all of the First Right
Space described in the Special Notice on all of the terms set forth in the Special Notice. If Tenant does not elect to lease such First Right Space, then thereafter, for a period of six (6) months (“Time Period”), Landlord may lease all of
such First Right Space substantially as described in the Special Notice to anyone else on the terms set forth in the Special Notice or on terms more beneficial to the Landlord than the terms set forth in the Special Notice. If Landlord does not
lease such First Right Space to anyone else during the Time Period, then Landlord shall, after the expiration of the Time Period, be required to send Tenant another Special Notice, and the above-described procedures shall be repeated, until all of
the First Right Space has been leased; provided, however, Landlord reserves the right to send a new Special Notice to Tenant at any time prior to the expiration of the Time Period. At Landlord’s election, any Special Notice may refer to one or
more separate parcels of First Right Space and if such Special Notice refers to more than one such parcel, Tenant may elect to take all, some, one, or none of such parcels and Landlord, once the five (5) day period has lapsed, may lease one or more
or all of the parcels comprising the First Right Space specified in such Special Notice until the Time Period elapses. The First Right set forth herein is not personal to Tenant and may be assigned to any assignee of Tenant. For the purpose of the
First Right Space only, the term Tenant shall be limited to the Carnation Company, an assignee which assumes the entire Lease, or a subtenant which subleases the entire Premises. 

 
 84 

  
 Section 60.    Directory Board. Landlord, at
Landlord’s sole cost and expense, which may be included as Operating Expenses, shall furnish Tenant with spaces for one (1) designated name per one thousand (1,000) rentable square feet of space leased by Tenant herein on the Building directory
board in the lobby of the Building and any other directory which may be or become a part of the Project. 
  
 Section
61.    Management. Except as provided below, Landlord is granted the right to designate the building manager at any time during the period of the Lease. Landlord shall designate LPC or its affiliate as the initial building
manager, or may designate any other managing agent, subject to the Tenant’s reasonable approval, as the initial manager who shall continue as manager until replaced as set forth herein. Any management agreement shall provide that the managing
agent shall operate the Building in a first-class manner and in the most cost-effective manner possible so as to minimize Operating Expenses consistent with providing institutional quality services. Tenant shall have the right, no more than twice a
year, to review and copy all documents and information pertaining to Operating Expenses and Taxes, at Tenant’s expense and during normal business hours after reasonable notice to Landlord. In the event LPC, or a company affiliated with or owned
by LPC, is a limited or general partner of the Landlord entity, Tenant agrees that LPC may manage the Building at the same fee charged by an independent management company, as reasonably determined by Landlord and Tenant. Either Landlord or Tenant
may terminate LPC, or any other building manager, as building manager at any time for cause, with any dispute thereof subject to Section 63 below. If LPC or an affiliate of LPC ceases to be a joint venture partner with Carnation Company and provided
Carnation Company is the Tenant hereunder at such time, Carnation Company may terminate LPC as building manager at any time without cause. 
  
 Section 62.    Storage. Tenant shall be allowed to construct, at Tenant’s sole cost and expense, storage space in any non-rentable, non-usable portions of the Building, provided that such
space shall not be located on floors leased by other tenants of the Building unless approved by Landlord. Tenant acknowledges that Landlord does not presently intend to create any storage space for use by Tenant. The location and design of the
storage area, if any, shall be subject to Landlord’s reasonable consent. The amount of rent to be charged for storage space, if any, shall be equal to the marginal increase in the Building’s Operating Expenses directly attributable to such
storage space. Tenant shall be required to maintain,
 

 
 85 

 
repair and insure the storage space pursuant to the other terms and conditions of the Lease and otherwise perform its obligations hereunder with respect to the storage space. 

 
 Section 63.    Dispute Resolution. 
  
 (a)    Any action or proceeding brought by or on behalf of Tenant or Landlord (except where Arbitration is otherwise specified and required under this
Lease) arising out of this Lease or in any way related to the terms and provisions of this Lease shall be brought and maintained in the Superior Court of the State of California for the County of Los Angeles, and each party to this Lease hereby
recites, consents and agrees that said Court shall have personal jurisdiction over each party in any such action or proceeding and that said Court is a convenient forum for the litigation of any such action or proceeding. Each party hereby recites,
consents and agrees that any controversy arising out of this Lease shall be heard by a reference under Section 638, et seq. of the California Code of Civil Procedure (or such successor statute thereto as may hereafter be enacted) and
that a reference shall be ordered by said Court to any retired judge of said Court, promptly upon commencement of such action or proceeding, by agreement of the parties or (failing such agreement) upon motion brought by any party hereto, to try any
or all of the issues in any such action or proceeding, whether of fact or of law, and to report a settlement or decision thereon. 
  
 (b)    The reference hereunder shall be made to one person in the following manner: the party commencing the action or proceeding shall deliver to the other party or parties a list of five (5) qualified and
available retired Los Angeles County Superior Court judges. The party receiving the list shall have thirty (30) days from delivery of such list within which to select one (1) judge from the list who shall try the matter, or, if such party objects to
all of the judges specified on such list, then the Court for the County of Los Angeles shall order a reference to any other retired judge of said Court. All provisions of the California Codes of Civil Procedure and Evidence, including the right to
have an authorized clerk and certified court reporter in attendance, shall apply in such action or proceeding. The judgment rendered in any such proceeding shall have the same force and effect and shall entitle all parties to the same rights
(including appeals) as if the action had been tried by the court. 

 
 86 

  
 (c)    It is agreed that if, at any time, a dispute shall
arise as to any amount or sum of money to be paid by one party to the other under the provisions hereof, the party against whom the obligation to pay the money is asserted shall have the right to make payment “under protest”, and such
payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said party to institute suit for the recovery of such sum, and if it shall be adjudged by a court of competent jurisdiction that there was no legal
obligation on the part of said party to pay such sum or any part thereof, said party shall be entitled to recover such sum or so much thereof as it was not legally required to pay under the provisions of this Lease; if, at any time, a dispute shall
arise between the parties hereto as to any work to be performed by either of them under the provisions hereof, the party against whom the obligation to perform the work is asserted may perform such work and pay the costs thereof “under
protest”, the performance of such work shall in no event be regarded as a voluntary performance and shall survive the right on the part of said party to institute suit for the recovery of the costs of such work, and if it shall be adjudged by a
court of competent jurisdiction that there was no legal obligation on the part of said party to perform such work or any part thereof, said party shall be entitled to recover the costs of such work or the cost of so much thereof as said party was
not legally required to perform under the provisions of this Lease. No payment or performance shall be considered to be under protest unless at the time of payment or performance the protesting party advises the other by notice that such payment or
performance is under protest. 
  
 (d)    Until a final determination, which is no longer capable
of being appealed, has been rendered, each party shall pay its obligation to the other pursuant to this Lease. 

 
 87 

  
 IN WITNESS WHEREOF, the parties have executed this Lease the day and year first
above written. 
  
 
	 TENANT:
 	 	  	 	 LANDLORD:
 
	 
	 CARNATION COMPANY, a Delaware Corporation
 	 	  	 	 EIGHT HUNDRED NORTH BRAND BOULEVARD, a California Limited Partnership
 
	 
	 By:
 	 	 /s/    Jule N. Kvamme        
 
Jule N. Kvamme
 Its Executive Vice President and Chief
 Administrative Officer
 	 	  	 	 By:
 	 	 Lincoln Property Company
 No. 1384, a California  
 Limited Partnership, its general partner,      
 
	 
	  	 	  	 	  	 	 By:
 	 	 /s/    John R. Miller        
 

	  	 	  	 	  	 	  	 	 John R. Miller, a managing general partner
 

 
  
 We agree to be bound by the obligations imposed on Lincoln Property
Company N.C., Inc. pursuant to Section B of the General Conditions and Sections 4, 10 and 22(f) of the Lease, subject to the provisions set forth in Section 49 of this Lease. 
  
 
	 LINCOLN PROPERTY COMPANY N.C., INC., a Texas Corporation
 
	 
	 By:
 	 	 /s/    John R. Miller         
 

	 
	 Its:
 	 	 Senior Vice President        
 

 

 
 88

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]