Document:

Multi-Tenant Net Commercial Lease

 Exhibit 10.3 
 MULTI-TENANT NET COMMERCIAL 
 LEASE 
 Dated: February 20, 2008 
 1. BASIC LEASE TERMS. For purposes of this Lease, the following terms have the following definitions
and meanings: 
 (a)        Landlord: PRANJIWAN R. LODHIA and LOLITA LODHIA 
             Landlord’s Address (For Notice): 1900 OAKDALE AVENUE, SAN FRANCISCO, CA 94124
or such other place as Landlord may from time to time designate by notice to Tenant. 
 (b)        Tenant:
ENCORE CAPITAL GROUP, INC., a Delaware corporation. 
             Tenant’s
Trade Name: MIDLAND CREDIT MANAGEMENT, INC., a Kansas corporation. 
             Tenant’s Address for Notices: 8875 AERO DRIVE, SUITE 200, SAN DIEGO, CA 92123. 
 (c)        Premises: Address: 4302 EAST BROADWAY ROAD, PHOENIX (“City”), State of ARIZONA 85040 (“State”). 
 The Premises consists of the Building and improvements located at the address above, as more specifically depicted on Exhibit “A”. The Building contains
approximately 32,611 Rentable Square Feet (subject to adjustment as provided in this Lease) 
 (d)        Tenant’s share of Common Area Operating Expenses: 52% (“Tenant Share”) as determined by the pro-rata square footage of the Building as compared to the total square
footage of all buildings in the Project which is 62,611 Square Feet. 
 (e)        Initial Term: SIXTY
(60) Calendar Months. 
 (f)         Commencement Date: OCTOBER 1, 2008 
 (g)        Expiration Date: SEPTEMBER 30, 2013 
 (h)        Base Rent Schedule: 
  

			
	 Effective Date(s)
	  	 Monthly Base Rent Amount

		
	OCTOBER 1, 2008 through SEPTEMBER 30, 2011	  	$26,741.02 NNN per month
		
	OCTOBER 1, 2011 through SEPTEMBER 30, 2013	  	$27,719.35 NNN per month

 (i)        Additional Rent-Minimum Monthly Operating Expense Charge:
No minimum. 
             Additional Payment-Monthly Amortized Tenant Improvement
Repayment: $7,265.42 per month for the Initial Term and $0 per month for any subsequent term, presuming that the maximum amount is being loaned on the terms set forth in Subparagraph 1 (n). 
 (j)        Security Deposit: $42,400.00 less any credit from the Security Deposit then remaining on the lease on the
4310 Space (defined below). 

 (k)        Permitted Use: GENERAL OFFICE and no other use without
the express written consent of Landlord. 
 (l)         Broker(s): NONE 
 (m)       Option to Extend: Tenant shall have two (2), five-year options to extend the lease under the terms. See Exhibit F.

 (n)        Tenant Improvements: Landlord will fund to Tenant and pay for $50,000.00 in Tenant Improvement
costs and fees upon execution of the Lease. If requested by Tenant, Landlord will provide and lend to Tenant additional monies up to $350,000.00, at Tenant’s election, for additional Tenant Improvement costs and fees to be repaid to Landlord
over the initial five (5) year term of the Lease or sooner, at Tenant’s election, at an interest rate of 9% per annum. If Tenant defaults or breaches the terms of this Lease, all monies owed to Landlord for the additional Tenant
Improvements becomes immediately due and payable upon written demand. See Exhibit D. 
 (o)        Exhibits:
A through F, inclusive, which Exhibits are attached to this Lease and incorporated herein by this reference. 
 (p)        Landlord and Tenant both acknowledge that there is an existing Lease in place between Landlord and Tenant’s affiliate, Midland Credit Management, Inc. (“Midland”) for
approximately 62,611 square feet of space located at 4302 and 4310 East Broadway Road, Phoenix, AZ 85040 (the “4310 Space”) with termination date of September 30, 2008. The 4310 Space will not be included in this Lease and Midland
intends to terminate its interest in the 4310 Space at the end of its lease term. Landlord agrees to mitigate Midland’s Lease obligation for this space if Landlord is able to find another tenant to take over the 4310 Space before Midland’s
Lease terminates. If Landlord is successful at placing a new tenant into 4310 Space before the current Lease termination on September 30, 2008, Landlord will release Midland (and Tenant, if obligated) from any remaining Lease obligations for
the 4310 Space. 
 This Paragraph 1 represents a summary of the basic terms and definitions of this Lease. In the event of any inconsistency between
the terms contained in this Paragraph 1 and any specific provision of this Lease, the terms of the more specific provision shall prevail. 
 2.
PREMISES AND COMMON AREAS. 
 (a) Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises and the Building and
improvements situated thereon, upon and subject to the terms, covenants and conditions contained in this Lease to be performed by each party. 
 (b)
Tenant’s Use of Common Areas. During the Term of this Lease, Tenant shall have the nonexclusive right to use in common with all other occupants of the Project, the following common areas of the Project (collectively, the “Common
Areas”): the parking facilities of the Project which serve the Building, loading and unloading areas, trash areas, roadways sidewalks, walkways, parkways, driveways, landscaped areas, and similar areas and facilities situated within the Project
and appurtenant to the Building which are not reserved for the exclusive use of any Project occupants. The foregoing notwithstanding, Tenant will be entitled to the exclusive use of 142 parking spaces (53 in the back (i.e., Wood Street) parking lot
and 89 surrounding the building) in accordance with Paragraph 32, at no additional cost. The Common Areas and Tenant’s exclusive parking are specifically identified in Exhibit A. 
 (c) Landlord’s Reservation of Rights. Provided Tenant’s use of and access to the Premises is not interfered with in an unreasonable manner or at unreasonable times, Landlord reserves for itself
and for all other owner(s) and operator(s) of the Common Areas and the balance of the Project, the right from time to time to: (i) install, use, maintain, repair, replace and relocate pipes, ducts, conduits, wires and appurtenant meters and
equipment above the ceiling surfaces, below the floor surfaces and within the walls of the Building; (ii) make changes to the design and layout of the Project, including, without limitation, changes to buildings, driveways, entrances, loading
and unloading areas, direction of traffic, landscaped areas and walkways, parking spaces and parking areas; and (iii) use or close temporarily the Common Areas, and/or other portions of the Project while engaged in making improvements, repairs
or alterations to the Building, the Project, or any portion thereof. 

 3. TERM. The term of this Lease (“Term”) will be for the period designated in Subparagraph 1(e),
commencing on the Commencement Date, and ending on the Expiration Date. Each consecutive twelve (12) month period of the Term of this Lease, commencing on the Commencement Date, will be referred to herein as a “Lease Year”.

 4. POSSESSION. 
 (a) Delivery of Possession.
Tenant is already in possession of the Premises; Landlord confirms delivery of physical possession of the Premises to Tenant as of the Commencement Date. 
 (b) Condition of Premises. By being in possession of the Premises, Tenant will be deemed to have accepted the Premises in its “as-is” condition on the date of delivery of possession and to have acknowledged that all work to be
completed by Landlord has been completed and there are no additional items needing work or repair by Landlord. Landlord will provide Tenant $50,000.00 towards Tenant Improvements at execution of this Lease. Landlord further agrees to provide up to
an additional $350,000.00 towards Tenant Improvements at commencement of this Lease. Tenant will be entitled to elect to receive any amount up to $350,000 (the “Financed Amount”). Tenant will repay the Financed Amount to Landlord over the
life of the initial five (5) year Lease term in equal monthly payments at an interest rate of 9% per annum. The foregoing sentence notwithstanding, Tenant shall have the right to prepay all or any portion of the Financed Amount during the
five (5) year Lease term. If a Tenant default occurs pursuant to Subparagraph 22 (a) and remains after the application of any notice of default and opportunity to cure, all monies owed to Landlord for the additional Tenant Improvements
becomes due and payable within five (5) days after written demand. Tenant will be responsible and manage all improvement projects. Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with
respect to the Premises, the Building, the Project or any portions thereof or with respect to the suitability of same for the conduct of Tenant’s business and Tenant further acknowledges that Landlord will have no obligation to construct or
complete any additional buildings or improvements within the Project. 
 5. RENT. 
 (a) Monthly Base Rent. Tenant agrees to pay Landlord the Monthly Base Rent for the Premises (subject to adjustment as hereinafter provided) in advance on the first day of each calendar month during the
Term without prior notice or demand, except that Tenant agrees to pay the Monthly Base Rent for the first month of the Term directly to Landlord concurrently with the Commencement Date. All rent must be paid to Landlord, without any deduction or
offset, in lawful money of the United States of America, at the address designated by Landlord or to such other person or at such other place as Landlord may from time to time designate in writing. The Monthly Base Rent will be adjusted during the
Term of this Lease as provided in Subparagraph 1(h). 
 (b) Additional Rent. All amounts and charges to be paid by Tenant hereunder, including, without
limitation, payments for Operating Expenses, insurance and repairs, will be considered additional rent for purposes of this Lease, and the word “rent” as used in this Lease will include all such additional rent unless the context
specifically or clearly implies that only Monthly Base Rent is intended. Tenant shall pay to Landlord, in addition to and along with the rental otherwise payable hereunder, a sum equal to the aggregate of any municipal, city, county, state or
federal excise, sales, use or privilege taxes legally levied or imposed, or hereafter legally levied or imposed, during the Lease term or any extension or renewal, against or on account of the amounts payable hereunder or the receipts thereof by
Landlord (except state, federal or any other income taxes imposed or levied against Landlord), which shall be paid monthly with the installments of Rent as hereinabove provided. 
 (c) Late Payments. Any payment of Monthly Base Rent and Additional Rent received more than 5 days after the first of a month will be deemed late. Late payments of Monthly Base Rent and/or any item of
Additional Rent will be subject to interest and a late charge as provided in Subparagraph 22(f) below. 

 6. OPERATING EXPENSES. 
 (a) Operating Expenses. Throughout the Term of this Lease, commencing at the Commencement Date, Tenant agrees to pay Landlord as Additional Rent in accordance with the terms of this Paragraph 6, Tenant’s Share of Operating Expenses for
the taxes and insurance for the Project and all costs and expenses for the operation, maintenance, repair, and replacement of the Project as follows: (i) any form of real property tax assessment, levy, charge, improvement bond or similar
imposition of any kind or nature real estate taxes and assessments levied upon the Building and Premises imposed by any authority having the direct power to tax, including applicable State, County, City governments or any school, agricultural,
lighting, drainage or other improvement or special assessment district thereof; (ii) any and all assessments under any covenants, conditions and restrictions affecting the Project; (iii) water, sewer and other utility charges
(iv) management costs (“Management Costs”), including, without limitation, (A) wages and salaries (including payroll taxes and similar charges) of property management employees and (B) management office rental, supplies,
materials, equipment and tools including rental of personal property directly attributable to the management of the Project, which Management Costs will in no event increase more than five percent (5%) from the immediately prior calendar year;
(v) repair and maintenance of the structural portions of the buildings with the Project, including the plumbing, heating, ventilating, air-conditioning and electrical systems installed or furnished by Landlord; (vi) maintenance, costs and
upkeep of all parking and other Common Areas; (vii) depreciation on a straight line basis and rental of personal property used in maintenance; (viii) gardening and landscaping; (xv) maintenance of signs (other than signs of tenants of
the Project); (xvi) personal property taxes levied on or attributable to personal property used in connection with the Common Areas; (ix) reasonable accounting, audit, verification, legal and other consulting fees; and (x) costs and
expenses of repairs, resurfacing, repairing, maintenance, painting, lighting, cleaning, refuse removal, security and similar items, including appropriate reserves. 
 Notwithstanding the foregoing paragraph, the following shall not be included as Operating Expenses: (a) interest, points and fees on debt or amortization on or for any mortgage or similar security instrument (a
“Security Instrument”) encumbering the Project or any portion thereof, and all principal, escrow deposits and other sums paid on or in respect to any indebtedness (whether or not secured by a Security Instrument), and all costs incurred in
connection with any financing, refinancing or syndication of the Project; (b) costs of capital improvements and any other expenditures that, under generally accepted accounting principles (“GAAP”), should be capitalized, except that
Operating Expenses shall include the cost during the Term, as reasonably amortized by Landlord in accordance with GAAP, of any capital improvement; (c) costs of improvements to, or alterations of, space leased to or available for lease to any
tenant; (d) costs of repairing or restoring any portion of the Project damaged by a fire or other casualty, except to the extent that such costs constitute expenses (as opposed to capital expenditures) under GAAP and do not exceed the amount of
the deductible under the policy of casualty insurance maintained (or required to be maintained) by Landlord, or are not covered or paid for by insurance proceeds; (e) costs of repairs, alterations or replacements required as the result of the
exercise of any right of eminent domain or conveyance in lieu thereof, except to the extent that such costs constitute expenses (as opposed to capital expenditures) under GAAP and are not part of the condemnation award payable to Landlord with
respect thereto; (f) costs and expenses incurred in connection with leasing space in or procuring tenants for the Project, including, without limitation, leasing commissions and advertising expenses, and legal and other professional fees;
(g) court costs and legal fees incurred to enforce the obligations of tenants under leases of portions of the Project, or resulting from the violation by Landlord of the terms and conditions of any lease; (h) costs of correcting defects in
the initial construction of the Project, provided that this shall not exclude the cost of normal repair and maintenance expected with respect to the construction materials and equipment installed in the Project; (i) wages, salaries,
compensation and benefits of any employees above the level of property manager; and (j) fines, interest, charges, penalties, damages and other costs incurred by Landlord by reason of any default (or claim of default) or late payment by it under
any lease or other contract or instrument (regardless of whether or not the payment itself is allowed to be included in Operating Expenses), including, without limitation, any legal and other professional fees paid or incurred in connection
therewith. 
 (b) Determination of Tenant’s Monthly Operating Expense Charge. Tenant’s Monthly Operating Expense Charge shall be determined
as provided in Subparagraph 1(i) and as adjusted in this Paragraph 6 of this Lease. 
 (c) Estimate Statement. Prior to the Commencement Date and on or
about March 1st of each subsequent calendar year during the Term of this Lease, Landlord will deliver to Tenant a statement (“Estimate Statement”) wherein Landlord will 

 
estimate both the Operating Expenses and Tenant’s Monthly Operating Expense Charge for the then current calendar year. Tenant agrees to pay Landlord, as
additional rent, Tenant’s estimated Monthly Operating Expense Charge each month thereafter, beginning with the next installment of rent due (but not earlier than 20 days after Tenant’s receipt of such estimate), until such time as Landlord
issues a revised Estimate Statement or the Estimate Statement for the succeeding calendar year; except that, concurrently with the regular monthly rent payment next due following the receipt of each such Estimate Statement (but not earlier than 20
days after Tenant’s receipt of such estimate), Tenant agrees to pay Landlord an amount equal to one monthly installment of Tenant’s estimated Monthly Operating Expense Charge (less any applicable Operating Expenses already paid) multiplied
by the number of months from January, in the current calendar year, to the month of such rent payment next due, all months inclusive. If at any time during the Term of this Lease, but not more often than quarterly Landlord reasonably determines that
Tenant’s Share of Operating Expenses for the current calendar year will be greater than the amount set forth in the then current Estimate Statement, Landlord may issue a revised Estimate Statement and Tenant agrees to pay Landlord, within
twenty (20) days of receipt of the revised Estimate Statement, the difference between the amount owed by Tenant under such revised Estimate Statement and the amount owed by Tenant under the original Estimate Statement for the portion of the
then current calendar year which has expired. Thereafter Tenant agrees to pay Tenant’s Monthly Operating Expense Charge based on such revised Estimate Statement until Tenant receives the next calendar year’s Estimate Statement or a new
revised Estimate Statement for the current calendar year. 
 (d) Actual Statement. By April 1st of each calendar year during the Term of this
Lease, Landlord will also deliver to Tenant a statement (“Actual Statement”) which states Tenant’s Share of the actual Operating Expenses for the preceding calendar year. If the Actual Statement reveals that Tenant’s Share of the
actual Operating Expenses is more than the total Additional Rent paid by Tenant for Operating Expenses on account of the preceding calendar year, Tenant agrees to pay Landlord the difference in a lump sum within twenty (20) days of receipt of
the Actual Statement. If the Actual Statement reveals that Tenant’s Share of the actual Operating Expenses is less than the Additional Rent paid by Tenant for Operating Expenses on account of the preceding calendar year, Landlord will credit
any overpayment toward the next monthly installment(s) of Tenant’s Share of the Operating Expenses due under this Lease 
 (e) Miscellaneous. Any
delay or failure by Landlord in delivering any Estimate Statement or Actual Statement pursuant to this Paragraph 6 will not constitute a waiver of its right to require an increase in rent nor will it relieve Tenant of its obligations pursuant to
this Paragraph 6, except that Tenant will not be obligated to make any payments based on such Estimate Statement or Actual Statement until twenty (20) days after receipt of such Estimate Statement or Actual Statement. If Tenant does not object
to any Estimate Statement or Actual Statement within sixty (60) days after Tenant receives any such statement, such statement will be deemed final and binding on Tenant. Even though the Term has expired and Tenant has vacated the Premises, when
the final determination is made of Tenant’s Share of the actual Operating Expenses for the year in which this Lease terminates, Tenant agrees to promptly pay any increase due over the estimated expenses paid and, conversely, any overpayment
made in the event said expenses decrease shall promptly be rebated by Landlord to Tenant. Such obligation will be a continuing one which will survive the expiration or termination of this Lease for a period of one year after the Expiration Date.
Prior to the expiration or sooner termination of the Lease Term and Landlord’s acceptance of Tenant’s surrender of the Premises, Landlord will have the right to estimate the actual Operating Expenses for the then current Lease Year and to
collect from Tenant prior to Tenant’s surrender of the Premises, Tenant’s Share of any excess of such actual Operating Expenses over the estimated Operating Expenses paid by Tenant in such Lease Year. 
 f) No Limitation on Yearly Increases. Except as otherwise provided for management costs as set forth in Subparagraph 6(a), there shall be no limit on yearly
increase of the Operating Expenses per year over the previous year’s Operating Expenses. 
 7. SECURITY DEPOSIT AND CLEANING FEE. Upon
Tenant’s execution of this Lease, Tenant will deposit or transfer deposit from existing Lease with Landlord the Security Deposit designated in Subparagraph 1(j). The Security Deposit will be held by Landlord as security for the full and
faithful performance by Tenant of all of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Term hereof. The Security Deposit is not, and may not be construed by Tenant to constitute, rent for the last
month or any portion thereof. If Tenant defaults with respect to any provisions of this Lease set forth in Subparagraph 22(a) including, but not limited to, the provisions relating 

 
to the payment of rent or additional rent, Landlord may (but will not be required to) after applicable notice and cure periods, use, apply or retain all or any part of
the Security Deposit for the payment of any rent or any other sum in default, or for the payment of any other amount which Landlord may spend by reason of Tenant’s default or to compensate Landlord for any loss or damage which Landlord may
suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, Tenant agrees, within ten (10) days after Landlord’s written demand therefore, to deposit cash with Landlord in an amount sufficient
to restore the Security Deposit to its original amount and Tenant’s failure to do so shall constitute a default under this Lease. Landlord is not required to keep Tenant’s Security Deposit separate from its general funds, and Tenant is not
entitled to interest on such Security Deposit. If Tenant is not in default at the expiration or termination of this Lease, Landlord will return the Security Deposit to Tenant. Landlord’s obligations with respect to the Security Deposit are
those of a debtor and not of a trustee. 
 8. USE. 
 (a) Tenant’s Use of the Premises. The Premises may be used for the use or uses set forth in Subparagraph 1(l) only, and Tenant will not use or permit the Premises to be used for any other purpose without the prior written consent of
Landlord, which consent Landlord may not be unreasonably withheld, conditioned or delayed. Nothing in this Lease will be deemed to give Tenant any exclusive right to such use in the Project. 
 (b) Compliance. At Tenant’s sole cost and expense, Tenant agrees to procure, maintain and hold available for Landlord’s inspection, all governmental licenses and permits required for the proper
and lawful conduct of Tenant’s business from the Premises, if any. Tenant agrees not to use, alter or occupy the Premises or allow the Premises to be used, altered and occupied in violation of, and Tenant, at its sole cost and expense, agrees
its use and occupancy of the Premises, and the use and occupancy of others in the Premises to be in compliance with: (i) any and all laws, statutes, zoning restrictions, ordinances, rules, regulations, orders and rulings now or hereafter in
force and any requirements of any insurer, insurance authority or duly constituted public authority having jurisdiction over the Premises, the Building or the Project now or hereafter in force, (ii) the requirements of the Board of Fire
Underwriters and any other similar body, (iii) the Certificate of Occupancy issued for the Building, and (iv) any recorded covenants, conditions and restrictions and similar regulatory agreements, if any, which affect the use, occupation
or alteration of the Premises, the Building and or the Project. Tenant agrees to comply with the Rules and Regulations referenced in Paragraph 28 below. Tenant agrees not to do or permit anything to be done in or about the Premises which will in any
manner obstruct or interfere with the rights of other tenants or occupants of the Project, or injure or unreasonably annoy them, or use or allow the Premises to be used for any unlawful or unreasonably objectionable purpose. Tenant agrees not to
place or store any articles or materials outside of the Premises or to cause, maintain or permit any nuisance or waste in, on, under or about the Premises or elsewhere within the Project. Tenant shall not use or allow the Premises to be used for
lodging, bathing or the washing of clothes. 
 (c) Hazardous Materials. Except for ordinary and general office supplies, such as copier toner, liquid
paper, glue, ink and common household cleaning materials (some or all of which may constitute “Hazardous Materials” as defined in this Lease), Tenant agrees not to cause or permit any Hazardous Materials to be brought upon, stored, used,
handled, generated, released or disposed of on, in, under or about the Premises, the Building, the Common Areas or any other portion of the Project by Tenant, its agents, employees, subtenants, assignees, licensees, contractors or invitees
(collectively, “Tenant’s Parties”), without the prior written consent of Landlord, which consent Landlord may withhold in its sole and absolute discretion. Upon the expiration or earlier termination of this Lease, Tenant agrees to
promptly remove from the Premises, the Building and the Project, at its sole cost and expense, any and all Hazardous Materials, including any equipment or systems containing Hazardous Materials which are installed, brought upon, stored, used,
generated or released upon, in, under or about the Premises, the Building and/or the Project or any portion thereof by Tenant or any of Tenant’s Parties. To the fullest extent permitted by law, Tenant agrees to promptly indemnify, protect,
defend and hold harmless Landlord and Landlord’s partners, officers, directors, employees, agents, successors and assigns (collectively, “Landlord Indemnified Parties”) from and against any and all claims, damages, judgments, suits,
causes of action, losses, liabilities, penalties, fines, expenses and costs (including, without limitation, clean-up, removal, remediation and restoration costs, sums paid in settlement of claims, attorneys’ fees, consultant fees and expert
fees and court costs) which arise or result from the presence of Hazardous Materials on, in, under or about the Premises, the Building or any other portion of the Project and which are caused or permitted by Tenant or any of Tenant’s Parties.
Tenant agrees to 

 
promptly notify Landlord of any release of Hazardous Materials in the Premises, the Building or any other portion of the Project which Tenant becomes aware of during
the Term of this Lease, whether caused by Tenant or any other persons or entities. In the event of any release of Hazardous Materials caused or permitted by Tenant or any of Tenant’s Parties, Landlord shall have the right, but not the
obligation, to cause Tenant to immediately take all steps Landlord deems necessary or appropriate to remediate such release and prevent any similar future release to the satisfaction of Landlord and Landlord’s mortgagee(s). At all times during
the Term of this Lease, Landlord will have the right, but not the obligation, to enter upon the Premises to inspect, investigate, sample and/or monitor the Premises to determine if Tenant is in compliance with the terms of this Lease regarding
Hazardous Materials. As used in this Lease, the term “Hazardous Materials” shall mean and include any hazardous or toxic materials, substances or wastes as now or hereafter designated under any law, statute, ordinance, rule, regulation,
order or ruling of any agency of the State, the United States Government or any local governmental authority, including, without limitation, asbestos, petroleum, petroleum hydrocarbons and petroleum based products, urea formaldehyde foam insulation,
polychlorinated biphenyls (“PCBs”), and freon and other chlorofluorocarbons, except for ordinary and general office supplies, such as copier toner, liquid paper, glue, ink and common household cleaning materials. The provisions of this
Subparagraph 8(c) will survive the expiration or earlier termination of this Lease. Tenant shall not be responsible for any pre-existing hazardous material conditions or for any encroachment of hazardous materials from any other suites or properties
during the life of this lease. 
 (d) Refuse and Sewage. Tenant agrees not to keep any trash, garbage, waste or other refuse on the Premises except in
sanitary containers and agrees to regularly and frequently remove same from the Premises. Tenant shall keep all containers or other equipment used for storage of such materials in a clean and sanitary condition. Tenant shall properly dispose of all
sanitary sewage and shall not use the sewage disposal system for the disposal of anything except sanitary sewage. Tenant shall keep the sewage disposal system free of all obstructions and in good operating condition. If the volume of Tenant’s
trash becomes excessive in Landlord’s judgment, Landlord shall have the right to charge Tenant for additional trash disposal services and/or to require that Tenant contract directly for additional trash disposal services at Tenant’s sole
cost and expense. 
 9. NOTICES. Any notice required or permitted to be given hereunder must be in writing and may be given by personal delivery
(including delivery by overnight courier or an express mailing service) or by mail, if sent by registered or certified mail. Notices to Tenant shall be sufficient if delivered to Tenant at the Tenant’s Address for Notices Subparagraph 1b.
Either party may specify a different address for notice purposes by written notice to the other. While Tenant is in possession of the Premises, notices to the Tenant may also be delivered to the Premises. Notice shall be deemed given when delivered
(or upon refusal of acceptance of delivery), if given by personal delivery, otherwise one (1) business day following delivery to a nationally-recognized overnight courier service or three (3) business days following deposit in the United
States mail. 
 10. BROKERS. Landlord and Tenant each represents and warrants to the other that no finder, broker or other person is entitled to any
commission, fee or other compensation in connection with any of the transactions contemplated by this Lease. 
 11. SURRENDER; HOLDING OVER.

 (a) Surrender. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not constitute a merger, and shall,
at the option of Landlord, operate as an assignment to Landlord of any or all subleases or subtenancies. Upon the expiration or earlier termination of this Lease, Tenant agrees to peaceably surrender the Premises to Landlord broom clean and in a
state of good order, repair and condition, ordinary wear and tear and casualty damage excepted, with all of Tenant’s personal property and alterations removed from the Premises to the extent required under Paragraph 13 and all damage caused by
such removal repaired as required by Paragraph 13. The delivery of keys to any employee of Landlord or to Landlord’s agent or any employee thereof alone will not be sufficient to constitute a termination of this Lease or a surrender of the
Premises. 
 (b) Holding Over. If Tenant holds over after the expiration or earlier termination of the Term, Landlord may, at its option, treat Tenant
as a tenant at sufferance only, and such continued occupancy by Tenant shall be subject to all of the terms, covenants and conditions of this Lease, so far as applicable, including the payment of Operating Expenses, except that the Monthly Base Rent
for any month or partial month during which Tenant holds over shall be equal to one hundred and 

 
fifty percent (150%) of the Monthly Base Rent in effect under this Lease immediately prior to such holdover. Acceptance by Landlord of rent after such expiration
or earlier termination will not result in a renewal of this Lease. If Tenant fails to surrender the Premises upon the expiration of this Lease in accordance with the terms of this Paragraph 11 despite demand to do so by Landlord, Tenant agrees to
promptly indemnify, protect, defend and hold Landlord harmless from all claims, damages, judgments, suits, causes of action, losses, liabilities, penalties, fines, expenses and costs (including attorneys’ fees and costs), including, without
limitation, costs and expenses incurred by Landlord in returning the Premises to the condition in which Tenant was to surrender it and claims made by any succeeding tenant founded on or resulting from Tenant’s failure to surrender the Premises.
The provisions of this Subparagraph 11(b) will survive the expiration or earlier termination of this Lease 
 12. TAXES ON TENANT’S PROPERTY.
Tenant agrees to pay before delinquency, all taxes and assessments (real, to the extent Landlord is not otherwise obligated to pay them as contemplated by Subparagraph 6(a), and personal) levied against Tenant’s business operations or any
personal property, improvements, alterations, trade fixtures or merchandise placed by Tenant in or about the Premises. 
 13. ALTERATIONS. Tenant shall
not make any alterations to the Premises or any other aspect of the Project; without Landlord’s prior written consent, which consent Landlord may withhold in its reasonable but subjective discretion. All permitted alterations must be performed
in compliance with Landlord’s standard rules and regulations regarding alterations. All alterations will become the property of Landlord and will remain upon and be surrendered with the Premises at the end of the Term of this Lease; provided
however, Landlord may require Tenant to remove any unique alterations at the end of the Term of this Lease. If Tenant fails to remove such by the expiration or earlier termination of this Lease all of its personal property, or any unique alterations
identified by Landlord for removal, Landlord may, at its option, treat such failure as a hold-over pursuant to Subparagraph 11(b) above, and/or Landlord may (without liability to Tenant for loss thereof) treat such personal property and or
alterations as abandoned and, at Tenant’s sole cost and expense and in addition to Landlord’s other rights and remedies under this Lease, at law or in equity: (a) remove and store such items; and/or (b) upon ten
(10) days’ prior notice to Tenant, sell, discard or otherwise dispose of all or any such items at private or public sale for such price as Landlord may obtain or by other commercially reasonable means. Tenant shall be liable for all costs
of disposition of Tenant’s abandoned property and Landlord shall have no liability to Tenant with respect to any such abandoned property. Landlord agrees to apply the proceeds of any sale of any such property to any amounts due to Landlord
under this Lease from Tenant (including Landlord’s attorneys’ fees and other costs incurred in the removal, storage anchor sale of such items), with any remainder to be paid to Tenant. 
 14. REPAIRS. 
 (a) Landlord’s Obligations. Landlord agrees
to repair and maintain the Project common areas and the structural portions of the Building, including the foundations, bearing and exterior walls (excluding glass), sub-flooring and roof (excluding skylights), and the unexposed electrical, plumbing
and sewer systems, including those portions of such systems which are outside the Premises, gutters and downspouts on the, unless such maintenance and repairs are caused in part or in whole by the act, neglect or omission of any duty by Tenant, its
agents, servants, employees or invitees, in which case Tenant will pay to Landlord, as additional rent, the reasonable cost of such maintenance and repairs. The costs of maintenance and repairs performed by Landlord will be included in Operating
Expenses as provided for in Subparagraph 6 (a). Except as provided in this Subparagraph 14(a), Landlord has no obligation to alter, remodel, improve, repair, decorate or paint the Premises or any part thereof. Landlord will 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, which time shall be deemed
unreasonable should Landlord fail to commence repair within 30 days of such notice. Tenant will not be entitled to any abatement of rent and Landlord will not have any liability 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. Tenant waives the right to make repairs at Landlord’s expense
under any law, statute, ordinance, rule, regulation, order or ruling. 
 (b) Tenant’s Obligations. Tenant agrees to keep, maintain and preserve
the Premises in a state of condition and repair consistent with the Building and, when and if needed, at Tenant’s sole cost and expense, to make all repairs to the 

 
Premises and every part thereof including, without limitation, all interior walls, storefronts, floors, ceilings, interior and exterior doors and windows and fixtures
and interior plumbing and the heating, ventilating and air conditioning systems which serve the Premises, but excluding such maintenance and repairs Landlord is obligated to make herein. Any such maintenance and repairs will be performed by
Landlord’s contractor, or at Landlord’s option, by such contractor or contractors as Tenant may choose with approval from Landlord. Tenant agrees to pay all costs and expenses incurred in such maintenance and repair in accordance with the
Arizona Prompt Pay Act. If Tenant refuses or neglects to repair and maintain the Premises properly as required hereunder to the reasonable satisfaction of Landlord, Landlord, at any time following ten (10) days from the date on which Landlord
makes a written demand on Tenant to effect such repair and maintenance, may enter upon the Premises and make such repairs and/or maintenance, and upon completion thereof, Tenant agrees to pay to Landlord as additional rent, Landlord’s costs for
making such repairs plus an amount not to exceed ten percent (10%) of such costs for overhead, within ten (10) days of receipt from Landlord of a written itemized bill therefore. Any amounts not reimbursed by Tenant within such ten
(10) day period will bear interest at the Interest Rate (defined below) until paid by Tenant. 
 15. LIENS. Tenant agrees not to permit any
mechanic’s, materialmen’s or other liens to be filed against all or any part of the Project, the Building or the Premises, nor against Tenant’s leasehold interest in the Premises, by reason of or in connection with any repairs,
alterations, improvements or other work contracted for or undertaken by Tenant or any other act or omission of Tenant or Tenant’s agents, employees, contractors, licensees or invitees. At Landlord’s request, Tenant agrees to provide
Landlord with enforceable, conditional and final lien releases (or other evidence reasonably requested by Landlord to demonstrate protection from liens) from all persons furnishing labor and/or materials at the Premises. Landlord will have the right
at all reasonable times to post on the Premises and record any notices of non-responsibility which it deems necessary for protection from such liens. If any such liens are filed, Tenant will, at its sole cost and expense, promptly cause such liens
to be released of record or bonded so that it no longer affects title to the Project, the Building or the Premises. If Tenant fails to cause any such liens to be so released or bonded within twenty (20) days after Tenant’s receipt of
notice of the filing thereof, such failure will be deemed a material breach by Tenant under this Lease without the benefit of any additional notice or cure period described in Paragraph 22 below, and Landlord may, without waiving its rights and
remedies based on such breach, 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 claims giving rise to such liens. Tenant agrees to
pay to Landlord within ten (10) days after receipt of invoice from Landlord, any sum paid by Landlord to remove such liens, together with interest at the Interest Rate from the date of such payment by Landlord. 
 16. ENTRY BY LANDLORD. Landlord and its employees and agents will at all reasonable times have the right to enter the Premises to inspect the same, to show the
Premises to prospective purchasers or tenants, to post notices of non-responsibility, and/or to repair the Premises as permitted or required by this Lease. In exercising such entry rights, Landlord will minimize, as reasonably practicable, the
interference with Tenant’s business, and will provide Tenant at least 72 hours notice to Tenant (except no notice will be required in the event of an emergency). Tenant may alter any lock or install any new or additional locks or bolts on any
door of the Premises without Landlord’s prior written consent and without providing Landlord with a key to all such locks. Except in the case of the negligence or willful misconduct of Landlord, any entry to the Premises obtained by Landlord
during an emergency will not be construed or deemed to be a forcible or unlawful entry into the Premises, or an eviction of Tenant from the Premises and Landlord will not be liable to Tenant for any damages or losses resulting from any such entry.

 17. UTILITIES AND SERVICES. Throughout the Term of this Lease, Tenant shall pay directly to the utility company providing such service all costs for
water, gas, heat, light, power, sewer, electricity, telephone and other services metered, chargeable or provided to the Premises. Landlord will not be liable to Tenant for any failure to furnish any of the foregoing utilities and services if such
failure is caused by all or any of the following: (i) accident, breakage or repairs, (ii) strikes lockouts or other labor disturbance or labor dispute of any character; (iii) governmental regulation, moratorium or other governmental
action or inaction; (iv) inability despite the exercise of reasonable diligence to obtain electricity, water or fuel or (v) any other cause beyond Landlord’s reasonable control. In addition, in the event of any stoppage or
interruption of services or utilities, Tenant shall not be entitled to any abatement or reduction of rent (except as expressly provided in Subparagraphs 20(f) or 21(b) if such failure results from a damage or taking described therein), no eviction
of Tenant will result from such failure and Tenant will not be relieved from the performance of any covenant or agreement in this Lease because of such failure. In the event of any failure, stoppage or interruption thereof, Landlord agrees to
diligently attempt to resume service promptly. 

 18. INDEMNIFICATION. 
 (a) Except for the negligence or willful misconduct of Landlord, Landlord’s management agent, and mortgagee, if any, and their respective principals, officers, agents, servants, employees, and contractors (collectively, the Landlord
Parties”)Tenant shall indemnify, save harmless and defend Landlord, and the Landlord Parties from and against all claims, actions, damages, liability and expense, including without limitation reasonable attorneys’ fees and expenses
incurred by Landlord in connection with any loss of life, personal injury or damage to property or business arising out of or in any way connected with the Premises or Tenant’s operations, the condition, use, maintenance, repair, or occupancy
of the Premises, or in any way arising out of the activities in the Premises, Common Areas, or other portions of the Project, of the Tenant or its sublessees or their respective agents, employees, servants, invitees, or contractors. 
 (b) Except for the negligence or willful misconduct of Tenant, Landlord shall indemnify, save harmless and at Tenant’s option, defend Tenant and its
respective principals, officers, agents, servants, employees, and contractors from and against all claims, actions damages, liability and expense, including without limitation reasonable attorneys’ fees and expenses incurred by Tenant, in
connection with any loss of life personal injury or damage to property or business arising out of or in any way connected with the Landlord’s use or occupancy of the Common Area or Landlord’s operations, conduct, acts or omissions in
respect to the Project. 
 (c) Survival; No Release of Insurers. Tenant’s indemnification obligations under Paragraph 18 will survive the
expiration or earlier termination of this Lease. 
 19. INSURANCE. 
 (a) Tenant’s Insurance. On or before the earlier to occur of (i) the Commencement Date, or (ii) the date Tenant commences any work of any type in the Premises pursuant to this Lease (which may be prior to the
Commencement Date), and continuing throughout the entire Term hereof and any other period of occupancy, Tenant agrees to keep in full force and effect, at its sole cost and expense, a commercial policy of general liability and fire insurance
insuring Landlord and Tenant (and if requested by Landlord, the Landlord’s lender and property manager) against any liability for bodily injury, property damage (including loss of use of property) and personal injury arising out of the
ownership, use, occupancy, or maintenance of the Premises. Such insurance shall be in the amount of not less than $1,000,000 per occurrence. The limit of any such insurance shall not, however, limit the liability of Tenant hereunder. Tenant may
provide this insurance under a blanket policy, provided that said insurance shall have a Landlord’s protective liability endorsement attached thereto, listing Landlord and Landlord’s agent(s) as additional insured. Landlord reserves the
right to require any other form or forms of insurance as Tenant or Landlord or any mortgagees of Landlord may reasonably require from time to time in form, in amounts, and for insurance risks against which, a prudent tenant would protect itself, but
only to the extent coverage for such risks and amounts are available in the insurance market at commercially acceptable rates. Landlord makes no representation that the limits of liability required to be carried by Tenant under the terms of this
Lease are adequate to protect Tenant’s interests and Tenant should obtain such additional insurance or increased liability limits as Tenant deems appropriate. 
 (b) Supplemental Tenant Insurance Requirements. All policies must be in a form reasonably satisfactory to Landlord and issued by an insurer admitted to do business in the State. All policies must be issued by insurers with a
minimum policyholder rating of “A-” and a minimum financial rating of “VII” in the most recent version of Best’s Key Rating Guide. All policies must contain a requirement to notify Landlord (and Landlord’s property
manager and any mortgagees or ground lessors of Landlord who are named as additional insured, if any) in writing not less than thirty (30) days prior to any material change, reduction in coverage, cancellation or other termination thereof, or
within thirty (30) days in the case of non-payment of premium. Tenant agrees to deliver to Landlord, as soon as practicable after placing the required insurance, but in any event within the time frame specified in Subparagraph 19(a) above,
certificate(s) of insurance and/or if required by Landlord, certified copies of each policy evidencing the existence of such insurance and Tenant’s compliance with the provisions of this Paragraph 19. If any such initial or replacement policies
or certificates are not 

 
furnished within the time(s) specified herein, Landlord will have the right, but not the obligation, to obtain such insurance as Landlord deems necessary to protect
Landlord’s interests at Tenant’s expense. Tenant’s insurance must also contain a provision that the insurance afforded by such policy is primary insurance and any insurance carried by Landlord and Landlord’s property manager or
Landlord’s mortgagees or ground lessors, if any, will be excess over and non-contributing with Tenant’s insurance. 
 (c) Waiver of
Subrogation. Tenant’s property insurance shall contain a clause whereby the insurer waives all rights of recovery by way of subrogation against Landlord. Tenant shall also obtain and furnish evidence to Landlord of the waiver by Tenant’s
worker’s compensation insurance carrier of all rights of recovery by way of subrogation against Landlord. 
 20. DAMAGE OR DESTRUCTION.

 (a) Partial Destruction. If the Premises or the Building are damaged by fire or other casualty to an extent not exceeding twenty-five percent
(25%) of the full replacement cost thereof, and Landlord’s contractor reasonably estimates in a writing delivered to Landlord and Tenant that the damage thereto may be repaired, reconstructed or restored to substantially its condition
immediately prior to such damage within one hundred eighty (180) days from the date of such casualty, and Landlord will receive insurance proceeds sufficient to cover the costs of such repairs, reconstruction and restoration (including proceeds
from Tenant and/or Tenant’s insurance which Tenant is required to deliver to Landlord pursuant to Subparagraph 20(d) below to cover Tenant’s obligation for the costs of repair, reconstruction and restoration of any portion of the tenant
improvements and any alterations for which Tenant is responsible under this Lease), then Landlord agrees to commence and proceed diligently with the work of repair, reconstruction and restoration and this Lease will continue in full force and
effect. 
 (b) Substantial Destruction. Any damage or destruction to the Premises or the Building which Landlord is not obligated to repair pursuant to
Subparagraph 20(a) above will be deemed a substantial destruction. In the event of a substantial destruction, Landlord may elect within 30 days after such casualty to either. (i) repair, reconstruct and restore the portion of the Building or
the Premises damaged by such casualty, in which case this Lease will continue in full force and effect, subject to Tenant’s termination right contained in Subparagraph 20(c) below; or (ii) terminate this Lease effective as of the date
which is thirty (30) days after Tenant’s receipt of Landlord’s election to so terminate. 
 (c) Termination Rights. If Landlord elects
to repair, reconstruct and restore pursuant to Subparagraph 20(b)(i) hereinabove, and if Landlord’s contractor estimates that as a result of such damage, Tenant cannot be given reasonable use of and access to the Premises within two hundred ten
(210) days after the date of such damage, then either Landlord or Tenant may terminate this Lease effective upon delivery of written notice to the other within ten (10) days after Landlord delivers notice to Tenant of its election to so
repair, reconstruct or restore; provided, however, Tenant shall have no right to terminate this Lease if Landlord can relocate Tenant to other comparable Premises in the Building or the Project within ninety (90) days after the date of such
damage. 
 (d) Tenant’s Costs and Insurance Proceeds. In the event of any damage or destruction of all or any part of the Premises, Tenant agrees
to immediately (i) notify Landlord thereof, and (ii) deliver to Landlord all property insurance proceeds received by Tenant with respect to any tenant improvements installed by or at the cost of Tenant and any alterations, but excluding
proceeds for Tenant’s furniture, fixtures, equipment and other personal property, whether or not this Lease is terminated as permitted in this Paragraph 20, and Tenant hereby assigns to Landlord all rights to receive such insurance proceeds to
the extent of any balance of the Monthly Amortized Tenant Improvement Repayment then due. Upon delivery of such insurance proceeds to Landlord, the amount o of such insurance proceeds will be credited against the balance of the Monthly Amortized
Tenant Improvement Repayment obligation. If for any reason (including Tenant’s failure to obtain required insurance), Tenant fails to receive insurance proceeds covering the full replacement cost of any tenant improvements and any alterations
which are damaged, Tenant will be deemed to have self-insured the replacement cost of such items, and upon any damage or destruction thereto, Tenant agrees to immediately pay to Landlord the full replacement cost of such items, less any insurance
proceeds actually received by Landlord from Landlord’s or Tenant’s insurance with respect to such items. 

 (e) Abatement of Rent. In the event of any damage, repair, reconstruction and/or restoration described in this
Paragraph 20, rent will be abated or reduced, as the case may be, from the date of such casualty in proportion to the degree to which Tenant’s use of the Premises is impaired during such period of repair until such use is restored. Except for
abatement of rent as provided hereinabove, Tenant will not be entitled to any compensation or damages for loss of, or interference with, Tenant’s business or use or access of all or any part of the Premises or for lost profits or any other
consequential damages of any kind or nature, which result from any such damage, repair, reconstruction or restoration. 
 (f) Damage near End of Term.
Landlord and Tenant shall each have the right to terminate this Lease if any damage to the Premises or the Building occurs during the last twelve (12) months of the Term of this Lease where Landlord’s contractor estimates in a writing
delivered to Landlord and Tenant that the repair, reconstruction or restoration of such damage cannot be completed within sixty (60) days after the date of such casualty. If either party desires to terminate this Lease under this Subparagraph
(f), it shall provide written notice to the other party of such election within ten (10) days after its receipt of Landlord’s contractor’s repair estimates. 
 (g) Waiver of Termination Right. Landlord and Tenant agree that the foregoing provisions of this Paragraph 20 are to govern their respective rights and obligations in the event of any damage or destruction
and supersede and are in lieu of the provisions of any applicable law, statute, ordinance, rule, regulation, order or ruling now or hereafter in force which provide remedies for damage or destruction of leased premises (including, without
limitation, to the extent the Premises are located in California, the provisions of California Civil Code Section 1932, Subsection 2, and Section 1933, Subsection 4 and any successor statute or laws of a similar nature). 
 21. EMINENT DOMAIN. 
 (a) Substantial Taking. If the whole of
the Premises, or such part thereof as shall substantially interfere with Tenant’s use and occupancy of the Premises, as contemplated by this Lease, is taken for any public or quasi-public purpose by any lawful power or authority by exercise of
the right of appropriation, condemnation or eminent domain, or sold to prevent such taking, either party will have the right to terminate this Lease effective as of the date possession is required to be surrendered to such authority. 
 (b) Partial Taking; Abatement of Rent. In the event of a taking of a portion of the Premises which does not substantially interfere with Tenant’s use and
occupancy of the Premises including any temporary taking of ninety (90) days or less, then, neither party will have the right to terminate this Lease and Landlord will thereafter proceed to make a functional unit of the remaining portion of the
Premises (but only to the extent Landlord receives proceeds therefore from the condemning authority), and rent will be abated with respect to the part of the Premises which Tenant is deprived of on account of such taking. Notwithstanding the
immediately preceding sentence to the contrary, if any part of the Building or the Project is taken (whether or not such taking substantially interferes with Tenant’s use of the Premises), Landlord may terminate this Lease upon thirty
(30) days’ prior written notice to Tenant if Landlord also terminates the leases of the other tenants of the Building which are leasing comparably sized space for comparable lease terms. 
 (c) Condemnation Award. In connection with any taking of the Premises or the Building, Landlord will be entitled to receive the entire amount of any award which
may be made or given in such taking or condemnation, without deduction or apportionment for any estate or interest of Tenant, it being expressly understood and agreed by Tenant that no portion of any such award will be allowed or paid to Tenant for
any so-called bonus or excess value of this Lease, and such bonus or excess value will be the sole property of Landlord. Tenant agrees not to assert any claim against Landlord or the taking authority for any compensation because of such taking
(including any claim for bonus or excess value of this Lease); provided, however, if any portion of the Premises is taken, Tenant will have the right to recover from the condemning authority (but not from Landlord) any compensation as may be
separately awarded or recoverable by Tenant for the taking of Tenant’s furniture, fixtures, equipment and other personal property within the Premises, for Tenant’s relocation expenses, and for any loss of goodwill or other damage to
Tenant’s business by reason of such taking. 
 22. DEFAULTS AND REMEDIES. 
 (a) Defaults. The occurrence of any one or more of the following events will be deemed a default by Tenant: 
 (i) Intentionally omitted. 

 (ii) The failure by Tenant to make any payment of Base Rent or Additional Rent or any other payment required to be
made by Tenant hereunder, as and when due, where such failure continues for a period of five (5) days after written notice thereof from Landlord to Tenant; provided, however, that any such notice will be in lieu of, and not in addition to, any
notice required under applicable law (including, without limitation, to the extent the Premises are located in Arizona regarding unlawful detainer actions or any successor statute or law of a similar nature. 
 (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 Subparagraph 22(a)(i) or (ii) above, where such failure continues for a period of thirty (30) days after written notice thereof from Landlord to Tenant. The provisions of any such notice will be in lieu of, and not in
addition to, any notice required under applicable law (including, without limitation, to the extent the Premises are located in Arizona regarding unlawful detainer actions and any successor statute or similar law. If the nature of Tenant’s
default is such that more than thirty (30) days are reasonably required for its cure, then Tenant will not be deemed to be in default if Tenant, with Landlord’s concurrence, commences such cure within such thirty (30) day period and
thereafter diligently prosecutes such cure to completion. 
 (iv) (A) The making by Tenant of any general assignment for the benefit of creditors;
(B) the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or a petition for reorganization or arrangement under any law relating to bankruptcy unless, in the case of a petition filed against Tenant, the same is
dismissed within sixty (60) days); (C) the appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where possession is not
restored to Tenant within thirty (30) days; or (D) the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease where such seizure is
not discharged within thirty (30) days. 
 (b) Landlord’s Remedies: Termination. In the event of any default by Tenant, in addition to any
other remedies available to Landlord at law or in equity under applicable law (including, without limitation, to the extent the Premises are located in Arizona and any successor statute or similar law), Landlord will have the immediate right and
option to terminate this Lease and all rights of Tenant hereunder. If Landlord elects to terminate this Lease then, to the extent permitted under applicable law, 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 rent
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 rent 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 its obligations under this Lease or which, in the ordinary course of
things, results therefrom including, but not limited to: attorneys’ fees and costs; brokers’ commissions; the costs of refurbishment, alterations, renovation and repair of the Premises, and removal (including the repair of any damage
caused by such removal) and storage (or disposal) of Tenant’s personal property, equipment, fixtures, alterations, the tenant improvements and any other items which Tenant is required under this Lease to remove but does not remove, as well as
the unamortized value of any free rent, reduced rent, and any tenant improvement allowance or other costs or economic concessions provided, paid, granted or incurred by Landlord to the extent unpaid, pursuant to this Lease. As used in Subparagraphs
22(b) (i) and (ii) above, the “worth at the time of award” is computed by allowing interest at the Interest Rate of 10% per annum (the “Interest Rate”). 
 (c) Landlord’s Remedies; Re-Entry Rights. In the event of any default by Tenant, in addition to any other remedies available to Landlord under this Lease, at law or in equity, Landlord will 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 and or disposed of at the sole cost and
expense of and for the account of Tenant in accordance with the provisions of Paragraph 13 of this Lease or any other procedures permitted by applicable law. No reentry or taking possession of the Premises by Landlord pursuant to this Subparagraph
22(c) will 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 is decreed by a court of competent jurisdiction. 

 (d) Landlord’s Remedies; Re-Letting. If Landlord does not elect to terminate this Lease, Landlord may from
time to time, without terminating this Lease, either recover all rent as it becomes due or re-let the Premises or any part thereof on terms and conditions as Landlord in its sole and absolute discretion may deem advisable with the right to make
alterations and repairs to the Premises in connection with such re-letting. If Landlord elects to re-let the Premises, then rents received by Landlord from such re-letting will be applied: first, to the payment of any indebtedness other than rent
due hereunder from Tenant to Landlord; second, to the payment of any cost of such re-letting; third, to the payment of the cost of any alterations and repairs to the Premises incurred in connection with such re-letting; fourth, to the payment of
rent due and unpaid hereunder and the residue, if any, will be held by Landlord and applied to payment of future rent as the same may become due and payable hereunder. Should that portion of such rents received from such re-letting during any month,
which is applied to the payment of rent hereunder, be less than the rent payable during that month by Tenant hereunder, then Tenant agrees to pay such deficiency to Landlord immediately upon demand therefore by Landlord. Such deficiency will be
calculated and paid monthly. 
 (e) Landlord’s Remedies; Performance for Tenant. All covenants and agreements to be performed by Tenant under any
of the terms of this Lease are to be performed by Tenant at Tenant’s sole cost and expense and without any abatement of rent. If Tenant fails to pay any sum of money owed to any party other than Landlord, for which it is liable under this
Lease, or if Tenant fails to perform any other act on its part to be performed hereunder, and such failure continues for thirty (30) days after notice thereof by Landlord, Landlord may, without waiving or releasing Tenant from its obligations,
but shall not be obligated to, make any such payment or perform any such other act to be made or performed by Tenant. Tenant agrees to reimburse Landlord upon demand for all sums so paid by Landlord and all necessary incidental costs, together with
interest thereon at the Interest Rate of 10% per annum, from the date of such payment by Landlord until reimbursed by Tenant. This remedy shall be in addition to any other right or remedy of Landlord set forth in this Paragraph 22 

(f) Late Payment. If Tenant fails to pay any installment of rent within five (5) days of when due or if Tenant fails to make any other payment for which
Tenant is obligated under this Lease within five (5) days of when due, such late amount will accrue interest at the Interest Rate of 10% per annum until such amount is paid by Tenant to Landlord. In addition, Tenant agrees to pay to
Landlord concurrently with such late payment amount, as additional rent, a late charge equal to ten percent (10%) of the amount due or $500, whichever is less, to compensate Landlord for the extra costs Landlord will incur as a result of such
late payment. Landlord and Tenant agree that such late charge represents a fair and reasonable estimate of the costs that Landlord will incur by reason of any such late payment. Acceptance of any such interest and late charge will not constitute a
waiver of the Tenant’s default with respect to the overdue amount, or prevent Landlord from exercising any of the other rights and remedies available to Landlord. If Tenant incurs a late charge more than three (3) times in any period of
twelve (12) months during the Lease Term, then, notwithstanding that Tenant cures the late payments for which such late charges are imposed, Landlord will have the right to require Tenant thereafter to pay all installments of Monthly Base Rent
quarterly in advance in the form of a cashier’s check throughout the remainder of the Lease Term. Any payments of any kind returned for insufficient funds will be subject to an additional handling charge of $25.00, and thereafter, Landlord may
require Tenant to pay all future payments of rent or other sums due by money order or cashier’s check. 
 (g) Rights and Remedies Cumulative. All
rights, options and remedies of Landlord contained in this Lease will be construed and held to be cumulative, and no one of them will 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 or in equity, whether or not stated in this Lease. Nothing in this Paragraph 22 will be deemed to limit or otherwise affect Tenant’s indemnification of Landlord pursuant to any provision of this
Lease. 
 23. LANDLORD’S DEFAULT. Landlord will not be in default in the performance of any obligation required to be performed by Landlord under
this Lease unless Landlord fails to perform such obligation within thirty (30) days after the receipt of written 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 performance, then Landlord will not be deemed in default if it commences such performance within such thirty (30) day period and thereafter diligently pursues the same to
completion. Upon any default by Landlord, Tenant may exercise any of its rights provided at law or in equity, subject to the limitations on liability set forth in Paragraph 35 of this Lease. 

 24. ASSIGNMENT AND SUBLETTING 
 (a) Restriction on Transfer. Except as expressly provided in this Paragraph 24, Tenant will not, either voluntarily or by operation of law, assign or encumber this Lease or any interest herein or sublet the Premises or any part
thereof, or permit the use or occupancy of the Premises by any party other than Tenant (any such assignment, encumbrance, sublease or the like will sometimes be referred to as a “Transfer”), without the prior written consent of Landlord,
which consent Landlord will not unreasonably withhold, condition or delay. For purposes of this Paragraph 24, if Tenant is a corporation, partnership or other entity, any transfer, assignment, encumbrance or hypothecation of fifty percent
(50%) or more (individually or in the aggregate) of any stock or other ownership interest in such entity, and/or any transfer or assignment of any controlling ownership or voting interest in such entity, will be deemed a Transfer and will be
subject to all of the restrictions and provisions contained in this Paragraph 24; provided, however, this provision will not apply to public corporations, the stock of which is traded through a public stock exchange or over the counter system.

 (b) Transfer Notice. If Tenant desires to effect a Transfer, then at least thirty (30) days prior to the date when Tenant desires the Transfer
to be effective (the “Transfer Date”), Tenant agrees to give Landlord a notice (the “Transfer Notice”), stating the name, address and business of the proposed assignee, sublessee or other transferee (sometimes referred to
hereinafter as “Transferee”), reasonable information (including references) concerning the character, ownership, and financial condition of the proposed Transferee, the Transfer Date, any ownership or commercial relationship between Tenant
and the proposed Transferee, and the consideration and all other material terms and conditions of the proposed Transfer, all in such detail as Landlord may reasonably require. 
 (c) Landlord’s Options. Within fifteen (15) days of Landlord’s receipt of any Transfer Notice, and any additional information requested by Landlord concerning the proposed Transferee’s
financial responsibility, Landlord will notify Tenant of its election to do one of the following: (i) consent to the proposed Transfer subject to such reasonable conditions as Landlord may impose in providing such consent; (ii) refuse such
consent, which refusal shall be on reasonable grounds; or (iii) terminate this Lease as to all or such portion of the Premises which is proposed to be sublet or assigned and recapture all or such portion of the Premises for re-letting by
Landlord. 
 (d) Additional Conditions. A condition to Landlord’s consent to any Transfer of this Lease will be the delivery to Landlord of a true
copy of the fully executed instrument of assignment, sublease, transfer or hypothecation, in form and substance reasonably satisfactory to Landlord. Tenant agrees to pay to Landlord, as additional rent, all sums and other consideration payable to
and for the benefit of Tenant by the assignee or sublessee in excess of the rent payable under this Lease for the same period and portion of the Premises. In calculating excess rent or other consideration which may be payable to Landlord under this
paragraph, Tenant will be entitled to deduct commercially reasonable third party brokerage commissions and attorneys’ fees and other amounts reasonably and actually expended by Tenant in connection with such assignment or subletting if
acceptable written evidence of such expenditures is provided to Landlord. No Transfer will release Tenant of Tenant’s obligations under this Lease or alter the primary liability of Tenant to pay the rent and to perform all other obligations to
be performed by Tenant hereunder. Landlord may require that any Transferee remit directly to Landlord on a monthly basis, all moneys due Tenant by said Transferee. Consent by Landlord to one Transfer will not be deemed consent to any subsequent
Transfer. In the event of default by any Transferee of Tenant or any successor of Tenant in the performance of any of the terms hereof, Landlord may proceed directly against Tenant without the necessity of exhausting remedies against such Transferee
or successor. If Tenant effects a Transfer or requests the consent of Landlord to any Transfer (whether or not such Transfer is consummated), then, upon demand, Tenant agrees to pay Landlord a nonrefundable administrative fee of not more than Five
Hundred Dollars ($500.00), plus Landlord’s reasonable attorneys’ fees. 
 25. SUBORDINATION. Provided that Tenant’s right to possession
of the Premises will not be disturbed as long as Tenant is not in default under this Lease, 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 mortgagee or beneficiary with a deed of trust encumbering the Building and/or the Project, or any lessor of a ground or underlying lease with respect to the Building, 

 
this Lease will be subject and subordinate at all times to: (i) all ground leases or underlying leases which may now exist or hereafter be executed affecting the
Building; and (ii) the lien of any mortgage or deed of trust which may now exist or hereafter be executed for which the Building, the Project or any leases thereof, or Landlord’s interest and estate in any of said items, is specified as
security. Notwithstanding the foregoing, Landlord reserves the right to subordinate any such ground leases or underlying leases or any such liens to this Lease. If any such ground lease or underlying lease terminates for any reason or any such
mortgage or deed of trust is foreclosed or a conveyance in lieu of foreclosure is made for any reason, at the election of Landlord’s successor in interest, Tenant agrees to attorn to and become the tenant of such successor in which event.
Tenant hereby waives its rights under any law which gives or purports to give Tenant any right to terminate or otherwise adversely affect this Lease and the obligations of Tenant hereunder in the event of any such foreclosure proceeding or sale.
Tenant covenants and agrees to execute and deliver, upon demand by Landlord and in the form reasonably required by Landlord, any additional documents evidencing the priority or subordination of this Lease and Tenant’s attornment agreement with
respect to any such ground lease or underlying leases or the lien of any such mortgage or deed of trust. If Tenant fails to sign and return any such documents within ten (10) days of receipt, Tenant will be in default hereunder. 
 26. ESTOPPEL CERTIFICATE. Within ten (10) days following any written request which Landlord may make from time to time, Tenant agrees to execute and deliver
to Landlord an Estoppel certificate, in Landlord’s standard form or as may reasonably be required by Landlord’s lender. Landlord and Tenant intend that any statement delivered pursuant to this Paragraph 26 may be relied upon by any
mortgagee, beneficiary, purchaser or prospective purchaser of the Building or any interest therein. Tenant’s failure to deliver such statement within such time will 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. Without limiting
the foregoing, if Tenant fails to deliver any such statement within such ten (10) day period, Landlord may deliver to Tenant an additional request for such statement and Tenant’s failure to deliver such statement to Landlord within ten
(10) days after delivery of such additional request will constitute a default under this Lease. Tenant agrees to indemnify and protect Landlord from and against any and all claims, damages, losses, liabilities and expenses (including
attorneys’ fees and costs) attributable to any failure by Tenant to timely deliver any such Estoppel certificate to Landlord as required by this Paragraph 26. 
 27. BUILDING PLANNING. Intentionally omitted. 
 28. RULES AND REGULATIONS. Tenant agrees to faithfully observe and comply with
the “Rules and Regulations,” a copy of which is attached hereto and incorporated herein by this reference as Exhibit “C and all reasonable and nondiscriminatory modifications thereof and additions thereto from time to time put into
effect by Landlord. Landlord will not be responsible to Tenant for the violation or non-performance by any other tenant or occupant of the Building of any of the Rules and Regulations. 
 29. MODIFICATION AND CURE RIGHTS OF LANDLORD’S MORTGAGEES AND LESSORS. Tenant, within ten (10) days after request therefore, agrees to execute any reasonable amendments to this Lease which may be
requested by any lender or ground lessor of the Project, provided any such amendments do not increase the obligations of Tenant under this Lease or adversely affect the leasehold estate created by this Lease. In the event of any default on the part
of Landlord, Tenant will give notice by registered or certified mail to any beneficiary of a deed of trust or mortgage covering the Premises or ground lessor of Landlord whose address has been furnished to Tenant, and Tenant agrees to offer such
beneficiary, mortgagee or ground lessor a reasonable opportunity to cure the default (including with respect to any such beneficiary or mortgagee, time to obtain possession of the Premises, subject to this Lease and Tenant’s rights hereunder,
by power of sale or a judicial foreclosure, if such should prove necessary to effect a cure). 
 30. DEFINITION OF LANDLORD. The term
“Landlord,” as used in this Lease, so far as covenants or obligations on the part of Landlord are concerned, means and includes only the owner or owners, at the time in question, of the fee title of the Premises or the lessees under any
ground lease, if any. In the event of any transfer, assignment or other conveyance or transfers of any such title (other than a transfer for security purposes only), Landlord herein named (and in case of any subsequent transfers or conveyances, the
then grantor) will be automatically relieved from and after the date of such transfer, assignment or conveyance of all liability as respects the performance of any covenants or obligations on the part 

 
of Landlord contained in this Lease thereafter to be performed, so long as Landlord returns the Security Deposit to Tenant and the transferee assumes in writing all
such covenants and obligations of Landlord arising after the date of such transfer. Landlord and Landlord’s transferees and assignees have the absolute right to transfer all or any portion of their respective title and interest in the Project,
the Building, the Premises and or this Lease without the consent of Tenant, and such transfer or subsequent transfer will not be deemed a violation on Landlord’s part of any of the terms and conditions of this Lease. 
 31. WAIVER. The waiver by either party of any breach of any term, covenant or condition herein contained will not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition herein contained, nor will any custom or practice which may develop between the parties in the administration of the terms hereof be deemed a waiver of or in any way affect the right of either
party to insist upon performance in strict accordance with said terms. The subsequent acceptance of rent or any other payment hereunder by Landlord will 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. No acceptance by Landlord of a lesser sum than
the Base Rent and Additional Rent or other sum then due will be deemed to be other than on account of the earliest installment of such rent or other amount due, nor will any endorsement or statement on any check or any letter accompanying any check
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 installment or other amount or pursue any other remedy provided in this Lease. The consent
or approval of Landlord to or of any act by Tenant requiring Landlord’s consent or approval will not be deemed to waive or render unnecessary Landlord’s consent or approval to or of any subsequent similar acts by Tenant. 
 32. PARKING. So long as this Lease is in effect and provided Tenant is not in default hereunder, Landlord grants to Tenant, Tenant’s visitors and guests an
exclusive license to use the parking areas which serve the Building subject to the terms and conditions of this Paragraph 32 and the Rules and Regulations regarding parking contained in Exhibit “E” attached hereto. Tenant’s parking
areas are restricted to the areas marked on Exhibit “E”. Tenant will not use or allow any of Tenant’s employees or guests to use any parking spaces which have been specifically assigned by Landlord to other tenants or occupants or for
other uses such as visitor parking or which have been designated by any governmental entity as being restricted to certain uses. Landlord may assign any unreserved and unassigned parking spaces and/or make all or any portion of such spaces reserved,
if Landlord reasonably determines that it is necessary for orderly and efficient parking or for any other reasonable reason. Tenant agrees to cause its employees, subtenants, assignees, contractors, suppliers, customers and invitees to comply with
the Rules and Regulations. Landlord reserves the right from time to time to modify and/or adopt such other reasonable and non-discriminatory rules and regulations for the parking facilities as it deems reasonably necessary for the operation of the
parking facilities. 
 33. FORCE MAJEURE. If either Landlord or Tenant is delayed, hindered in or prevented from the performance of any act required
under this Lease by reason of strikes, lock-outs, labor troubles, inability to procure standard materials, failure of power, restrictive governmental laws, regulations or orders or governmental action or inaction (including failure, refusal or delay
in issuing permits, approvals and/or authorizations which is not the result of the action or inaction of the party claiming such delay) riots, civil unrest or insurrection, war, fire, earthquake, flood or other natural disaster, unusual and
unforeseeable delay which results from an interruption of any public utilities (e.g., electricity, gas, water, telephone) or other unusual and unforeseeable delay not within the reasonable control of the party delayed in performing work or doing
acts required under the provisions of this Lease, then performance of such act will be excused for the period of the delay and the period for the performance of any such act will be extended for a period equivalent to the period of such delay. The
provisions of this Paragraph 33 will not operate to excuse Tenant from prompt payment of rent or any other payments required under the provisions of this Lease. 
 34. SIGNS. Landlord will designate the location on the Premises, if any, for one or more Tenant identification sign(s). Tenant has no right to install Tenant identification signs in any other location in, on or about the
Premises or the Project and will not display or erect any other signs, displays or other advertising materials that are visible from the exterior of the Building or from within the Building in any interior or exterior common areas. The size, design,
color and other physical aspects of any and all permitted sign(s) will be subject to (i) Landlord’s written approval prior to installation, which 

 
approval may be withheld in Landlord’s discretion, (ii) any covenants, conditions or restrictions and sign criteria governing the Project, and (iii) any
applicable municipal or governmental permits and approvals. Tenant will be solely responsible for all costs for installation, maintenance, repair and removal of any Tenant identification sign(s). If Tenant fails to remove Tenant’s sign(s) upon
termination of this Lease and repair any damage caused by such removal, Landlord may do so at Tenant’s sole cost and expense. Tenant agrees to reimburse Landlord for all costs incurred by Landlord to effect any installation, maintenance or
removal on Tenant’s account, which amount will be deemed additional rent, and may include, without limitation, all sums disbursed, incurred or deposited by Landlord including Landlord’s costs, expenses and actual attorneys’ fees with
interest thereon at the Interest Rate from the date of Landlord’s demand until paid by Tenant. Any sign rights granted to Tenant under this Lease are personal to Tenant and may not be assigned, transferred or otherwise conveyed to any assignee
or subtenant of Tenant without Landlord’s prior written consent, which consent Landlord may withhold in its sole and absolute discretion. Landlord hereby consents to the location, size, color, design and other physical aspects of Tenant’s
existing signs. 
 35. LIMITATION ON LIABILITY. In consideration of the benefits accruing hereunder, Tenant on behalf of itself and all successors and
assigns of Tenant covenants and agrees that, in the event of any actual or alleged failure, breach or default hereunder by Landlord: Tenant’s recourse against Landlord for monetary damages will be limited to Landlord’s interest in the
Building including, subject to the prior rights of any Mortgagee, Landlord’s interest in the rents of the Building and any insurance proceeds payable to Landlord. 
 36. FINANCIAL STATEMENTS. Prior to the execution of this Lease by Landlord and at any time during the Term of this Lease upon the occurrence of a default under this Lease, Tenant agrees to provide Landlord with a current
balance sheet for Tenant and any guarantors of Tenant. Such statements are to be prepared in accordance with generally accepted accounting principles and, if such is the normal practice of Tenant, audited by an independent certified public
accountant. 
 37. 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 on Tenant’s part to be observed and performed under this Lease, Tenant may peaceably and quietly have, hold and enjoy the Premises in accordance with this Lease. 
 38. MISCELLANEOUS. 
 (a) Conflict of Laws. This Lease shall be
governed by and construed solely pursuant to the laws of the State of Arizona, without giving effect to choice of law principles hereunder. 
 (b)
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. 
 (c) Professional Fees and Costs. If either Landlord or Tenant should bring suit against the other with
respect to this Lease, then all costs and expenses, including without limitation, actual professional fees and costs such as appraisers’, accountants’ and attorneys’ fees and costs, incurred by the party which prevails in such action,
whether by final judgment or out of court settlement, 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. As used herein, attorneys’ fees and costs shall include, without limitation, attorneys’ fees, costs and expenses incurred in connection with any (i) post judgment motions;
(ii) contempt proceedings; (iii) garnishment, levy and debtor and third party examination; (iv) discovery; and (v) bankruptcy litigation. Tenant agrees to pay all collection agency fees and attorneys’ fees charged to
Landlord in connection with any late payment or non-payment of rent or any other amounts due under this Lease including, without limitation, a fee of $150.00 for the preparation of any demand for delinquent rent or any notice to pay rent or quit.

 (d) 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. 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. 

 (e) Time. Time is of the essence with respect to the performance of every provision of this Lease in which time of
performance is a factor. 
 (f) Prior Agreement; Amendments. This Lease constitutes and is intended by the parties to be a final, complete and
exclusive statement of their entire agreement with respect to the subject matter of this Lease. This Lease supersedes any and all prior and contemporaneous agreements and understandings of any kind relating to the subject matter of this Lease. There
are no other agreements, understandings, representations, warranties, or statements, either oral or in written form, concerning the subject matter of this Lease. No alteration, modification, amendment or interpretation of this Lease shall be binding
on the parties unless contained in a writing which is signed by both parties. 
 (g) Severability. The provisions of this Lease shall be considered
severable such that if any provision or part of this Lease is ever held to be invalid, void or illegal under any law or ruling, all remaining provisions of this Lease shall remain in full force and effect to the maximum extent permitted by law.

 (h) Recording. Neither Landlord nor Tenant shall record this Lease or a short form memorandum thereof without the consent of the other. 

(i) Counterparts. This Lease may be executed in one or more counterparts, each of which shall constitute an original and ail of which shall be one and the same
agreement. 
 (j) Nondisclosure of Lease Terms. Tenant acknowledges and agrees that the terms of this Lease are confidential and constitute proprietary
information of Landlord. Disclosure of the terms could adversely affect the ability of Landlord to negotiate other leases and impair Landlord’s relationship with other tenants. Accordingly, Tenant agrees that it, and its partners, officers,
directors, employees, agents and attorneys, shall not intentionally and voluntarily disclose the terms and conditions of this Lease to any newspaper or other publication or any other tenant or apparent prospective tenant of the Building or other
portion of the Project, or real estate agent, either directly or indirectly, without the prior written consent of Landlord, provided, however, that Tenant may disclose the terms pursuant to Landlord’s request for an Estoppel certificate, a
subordination agreement or to prospective subtenants or assignees under this Lease. 
 (k) Non-Discrimination. Tenant acknowledges and agrees that
there shall be no discrimination against, or segregation of, any person, group of persons, or entity on the basis of race, color, creed, religion, age, sex, marital status, national origin, or ancestry in the leasing, subleasing, transferring,
assignment, occupancy, tenure, use, or enjoyment of the Premises, or any portion thereof. 
 (i) Waiver of Jury Trial. Owner and Tenant waive any right
to trial by jury in any action or proceeding based upon, or related to, the subject matter of this Lease. This waiver is knowingly, intentionally, and voluntarily made by Tenant, and Tenant acknowledges that neither Owner nor any person acting on
behalf of Owner has made any representation of fact to induce this waiver of trial by jury or in any way to modify or nullify its effect. 
 39.
EXECUTION OF LEASE. 
 (a) Joint and Several Obligations. If more than one person executes this Lease as Tenant, their execution of this Lease will
constitute their covenant and agreement that (i) each of them is jointly and severally liable for the keeping, observing and performing of all of the terms, covenants, conditions, provisions and agreements of this Lease to be kept, observed and
performed by Tenant, and (ii) the term “Tenant” as used in this Lease means and includes each of them jointly and severally. The act of or notice from, or notice or refund to, or the signature of any one or more of them, with respect
to the tenancy of this Lease, including, but not limited to, any renewal, extension, expiration, termination or modification of this Lease, will be binding upon each and all of the persons executing this Lease as Tenant with the same force and
effect as if each and all of them had so acted or so given or received such notice or refund or so signed. 
 (b) Tenant as Corporation or Partnership.
If Tenant executes this Lease as a corporation or partnership, then Tenant and the persons executing this Lease on behalf of Tenant represent and warrant that such entity is duly qualified and in good 

 
standing to do business in Arizona and that the individuals executing this Lease on Tenant’s behalf are duly authorized to execute and deliver this Lease on its
behalf, and in the case of a corporation, in accordance with a duly adopted resolution of the board of directors of Tenant, a copy of which is to be delivered to Landlord on execution hereof, if requested by Landlord, and in accordance with the
by-laws of Tenant, and, in the case of a partnership, in accordance with the partnership agreement and the most current amendments thereto, if any, copies of which are to be delivered to Landlord on execution hereof, if requested by Landlord, and
that this Lease is binding upon Tenant in accordance with its terms. 
 (c) Examination of Lease. Submission of this instrument by Landlord to Tenant
for examination or signature by Tenant does not constitute a reservation of or option for lease, and it is not effective as a lease or otherwise until execution by and delivery to both Landlord and Tenant. 
 40.        CONTINUOUS OPERATION. 
              [Intentionally omitted]. 
 41.        OPERATING HOURS. 
              Tenant’s business will be operated only during its normal business hours and days of the week. It is agreed, however, that the foregoing provision shall be
subject to any governmental regulations to which Tenant may be subject concerning the hours of operation of Tenant’s business. 
 42.        OPTION TO EXTEND TERM: Tenant will have the option to extend the Term of this Lease for two (2), five-year periods (the “Extended Term”). See Exhibit F. 
 43.        HVAC MAINTENANCE 
              Tenant shall maintain the HVAC on a ninety day service agreement. 
 IN WITNESS WHEREOF, the parties have caused this Lease to be duly executed by their duly authorized representatives as of the date first above written. 
  

									
	LANDLORD:	 		 	TENANT:
			
		 		 	 ENCORE CAPITAL GROUP, INC., a Delaware corporation

					
	 By:
	 	 /s/ Pranjiwan R. Lodhia
	 		 	 By:
	 	 /s/ Paul Grinberg

		 	 Pranjiwan R. Lodhia
	 		 		 	 Paul Grinberg, EVP and CFO

					
	 By:
	 	 /s/ Lolita Lodhia
	 		 	 Dated:
	 	  

		 	 Lolita Lodhia
	 		 		 	
					
	 Dated:
	 	 April 16, 2008Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is dated
as of July 22, 2008, and is made and entered into by and between The Wet Seal, Inc., a Delaware corporation (the “Company”), and Maria Comfort (“Executive”) (collectively, the
“Parties”). 
 IN CONSIDERATION of the premises and the mutual covenants set forth below, the Parties hereby agree as
follows: 
  

	 	1.	EMPLOYMENT 

 The Company hereby agrees to employ Executive as the
President and Chief Merchandise Officer of the Wet Seal division and Executive hereby accepts such employment upon the terms and conditions set forth below. 
  

	 	2.	TERM AND PLACE OF PERFORMANCE 

 The term of this Agreement shall
begin on August 25, 2008 (the “Effective Date”), and, unless sooner terminated as provided herein, shall end on August 25, 2011 (the “Term”). The Term may be sooner terminated by either party
in accordance with the provisions of Section 5. The principal place of employment of Executive shall be at the Company’s headquarters in Foothill Ranch, California (or at such other locations within the fifty (50) mile radius of its
current location as it may be relocated); provided, that, Executive shall be required to travel from time to time on the business of the Company during the Term. 
  

	 	3.	COMPENSATION 

 3.1 Base
Compensation. For the services to be rendered by Executive under this Agreement, Executive shall be entitled to receive, commencing as of the Effective Date, salary at the annual rate of Five Hundred Thousand Dollars ($500,000) (the
“Base Compensation”), less all applicable tax withholdings by the Company. The Base Compensation shall be payable in accordance with the Company’s customary payroll practices. The Compensation Committee of the Board of
Directors of the Company (the “Committee”) shall review Executive’s Base Compensation annually and may make adjustments to increase but not decrease such Base Compensation, in accordance with the compensation practices
and guidelines of the Company. 
 3.2 Annual Bonus; Guaranteed 2008 Annual Bonus. 
 (a) Subject to the achievement of performance objectives pre-determined by the Committee, Executive shall be eligible to receive annual
bonus compensation targeted at fifty percent (50%) of Base Compensation, a portion of which shall be based on the Spring operating income results for the Company as a whole and the remaining portion shall be based on the Fall operating income
results for the Company as a whole (each a “Seasonal Bonus”). The maximum annual bonus compensation opportunity shall be up to 100% of Executive’s Base Compensation. In order to earn a Seasonal Bonus, Executive must be
employed on the date the Company pays the applicable Seasonal Bonus. Any Fall bonus under this provision shall be paid no later than the fifteenth (15th) day of the third month following the end of the fiscal year for which it is earned and any
Spring bonus earned hereunder shall be paid in the third quarter of such fiscal year. Prior to the commencement of any Seasonal Bonus period, the Company reserves the right to change the operating metric(s) for purposes of measuring the Seasonal
Bonus earned. 
 (b) The Committee may in its sole discretion replace this Seasonal Bonus program with an annual bonus program
under which such annual bonus shall be based on the achievement of annual metrics established by the Company each fiscal year (such metrics to be determined as late as seventy-five (75) days following the beginning of each applicable fiscal
year). In order to earn this annual bonus, Executive must be employed on the date the Company pays such annual bonus and any annual bonus so earned shall be paid no later than the fifteenth (15th) day of the third month following the end of the
fiscal year for which it is earned and following certification by the Committee of the achievement of the applicable performance metrics and the amount of the annual bonus to be paid to Executive for the applicable fiscal year. 

 (c) Executive shall be guaranteed a bonus of $75,000 for fiscal year 2008, subject to tax
withholdings by the Company, for the partial year that Executive will be employed. In addition, Executive shall be eligible to receive an additional bonus based on performance metrics identified to her by the Company’s Chief Executive Officer.
Executive shall be paid the guaranteed bonus and any additional bonus within 75 days following fiscal year 2008; provided, that, she has not been terminated by the Company for Cause (as defined below) or tendered her notice of
resignation on or before the bonus payment date. 
 3.3 Options. Pursuant to and subject to the terms of The Wet Seal
Inc. 2005 Stock Incentive Plan, as amended and/or restated from time to time (the “Plan”), on the Effective Date, Executive shall be awarded an option to purchase 60,000 shares of Class A common stock of the Company
(“Common Stock”) in accordance with the stock option agreement attached hereto as Exhibit B, as may be amended and/or restated from time to time (the “Stock Option Agreement”). 
 3.4 Performance Shares. Pursuant to and subject to the terms of the Plan, on the Effective Date, Executive shall be awarded 90,000
shares of Common Stock, all of which shall be subject to the performance-based vesting terms and conditions set forth in the Performance Share Award Agreement attached hereto as Exhibit C, as may be amended and/or restated from time to time
(the “Award Agreement”). 
 3.5 Vacation. During the Term, Executive shall be entitled to three
(3) weeks of paid vacation per year to be used and accrued in accordance with the Company’s vacation policy as it may be established from time to time. 
 3.6 Benefits. During the Term, Executive shall be entitled to participate in such employee benefit plans and insurance programs
offered by the Company to its employees generally, or which it may adopt from time to time for its employees generally, in accordance with the eligibility requirements for participation therein. 
 3.7 Expenses. While Executive is employed by the Company hereunder, the Company shall reimburse Executive for all reasonable and
necessary out-of-pocket business, travel and entertainment expenses incurred by Executive in the performance of her duties and responsibilities hereunder, subject to the Company’s normal policies and procedures for expense verification and
documentation. 
 3.8 Automobile Perquisite. During the Term, the Company shall provide Executive with a luxury sedan
automobile for her use and shall provide customary insurance coverage for such automobile. The Company shall also pay for all maintenance costs, including gasoline, repairs and service for such automobile. 
  

	 	4.	POSITION AND DUTIES 

 4.1
Position. Executive shall serve as the President and Chief Merchandise Officer of the Wet Seal division and shall report to the Company’s Chief Executive Officer. Executive shall perform duties consistent with her title and position and
any other reasonably related duties consistent with her position. This position is considered a 16(b) officer of the Company and subject to all insider trading, blackout periods and fiduciary responsibilities associated with such. 
 4.2 Devotion of Time and Effort. Executive shall use Executive’s good faith, best efforts and judgment (a) in performing
Executive’s duties required hereunder and (b) to act in the best interests of the Company. Executive shall work exclusively for the Company during the Term and shall devote such time, attention and energies to the business of the Company
as are reasonably necessary to satisfy Executive’s required responsibilities and duties hereunder. Executive shall perform the duties assigned to her to the best of Executive’s ability and in the best interests of the Company. 

4.3 Compliance with Policies. Executive shall observe all Company policies and all reasonable rules and regulations adopted by
the Company in connection with the conduct of its business, and shall render services in a competent, conscientious and professional manner and as instructed by the Company in all matters, including those involving artistic taste and judgment.

	 	5.	TERMINATION; TERMINATION BENEFITS 

 5.1 Due to Death or Disability. If Executive dies during the Term, Executive’s employment and this Agreement shall terminate as of the date of her death. The Company also may terminate Executive due to Executive’s
“Disability”, as defined below, at any time following the Effective Date, upon written notice to Executive, unless prohibited by law. For purposes of this Agreement, the term “Disability” shall mean a physical or
mental incapacity as a result of which Executive becomes unable to continue the proper performance of Executive’s duties hereunder for ninety (90) consecutive days or one hundred twenty (120) non-consecutive days in any three hundred
sixty five (365) day period, or, if this provision is inconsistent with any applicable law, for such period or periods as permitted by law. 
 5.2 By the Company Without “Cause”. The Company may terminate Executive’s employment without “Cause” (as defined below) at any time following the Effective Date, subject only to
compliance by the Company with the provisions of Section 5.5 hereof. 
 5.3 By the Company for “Cause”.
The Company may terminate Executive’s employment for “Cause” at any time. For purposes of this Agreement, “Cause” shall mean: 
 (a) Executive’s conviction of, or plea of nolo contendere to, any felony or any crime involving the Company; 
 (b) Executive’s commission of any act of theft, embezzlement or misappropriation against the Company; 
 (c) The gross neglect, malfeasance or nonfeasance of Executive in the performance of the services contemplated hereunder, when such
conduct causes or has the likelihood of causing material economic harm to the Company; 
 (d) A material breach of this
Agreement by Executive; 
 (e) Any willful misconduct or unethical behavior related to Executive’s duties hereunder or
insubordination by Executive; 
 (f) The sexual or other harassment by Executive of any employee, independent contractor or
customer of the Company; and/or 
 (g) Executive’s use of illegal drugs or abuse of alcohol or legally prescribed drugs.

 5.4 By Executive For Good Reason. Executive may terminate her employment for Good Reason as defined below. In the
event Executive seeks to terminate her employment for Good Reason, Executive shall provide thirty (30) days written notice to the Company setting forth Executive’s intention to terminate her employment with the Company. The Company shall
have the opportunity to cure the “Good Reason” within thirty (30) days of the Company’s receipt of the written notice from Executive. For purposes of this Agreement, “Good Reason” shall mean relocating
Executive’s place of work, or the executive offices of the Company, to a location more than fifty (50) miles from the site of the Company’s offices as of the date of this Agreement. 
 5.5 Resignation. Executive may voluntarily terminate her employment at any time following the Effective Date upon sixty
(60) days written notice to the Company. 

 5.6 Termination Payment. 
 (a) Amount. 
 (i) In the event that Executive’s employment is terminated pursuant to Sections 5.1 through 5.5, Executive shall continue to render services to the Company pursuant to this Agreement until the date of termination
(“Termination Date”) and shall continue to receive compensation and payment for any unreimbursed expenses incurred, accrued but unpaid Base Compensation and other accrued employee benefits as provided in this Agreement,
through the Termination Date. In the event Executive’s employment is terminated without “Cause” pursuant to Section 5.2, or Executive terminates her employment for “Good Reason” pursuant to Section 5.4, in each
case within the first three years of the Effective Date, and subject to subpart (c) below, Executive shall receive severance pay in an amount equal to one times Executive’s Base Compensation, in equal bimonthly installments paid over a
period of twelve (12) months (the “Severance Period”) with the first installment to be paid on the later of the Company’s first regular pay date after the Termination Date or the tenth (10th) day after
Executive’s execution of the release described in Section 5.6(c) below. Each installment of the severance pay shall be deemed a separate payment for the purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”). Notwithstanding the foregoing, if all or any portion of the severance payments due under this Section 5.6(a) are determined to be “nonqualified deferred compensation” subject to Section 409A of
the Code, and the Company determines that Executive is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code and the regulations and other guidance issued thereunder, then such severance payments (or portion
thereof) shall commence no earlier than the first day of the seventh month following the month in which Executive’s termination of employment occurs (with the first such payment being a lump sum equal to the aggregate severance payments
Executive would have received during such six-month period if no such payment delay had been imposed). For purposes of this Section 5.6(a)(i), “termination of employment” shall mean Executive’s “separation from service”
as defined in Section 1.409A-1(h) of the Final Treasury Regulations promulgated under Section 409A of the Code, including the default presumptions thereof. 
 (ii) If Executive is terminated (x) without Cause on or after the third anniversary of the Effective Date or (y) for Cause, then
Executive shall not receive any severance payments. 
 (iii) Except as provided in this Section 5.6, Executive shall not
be entitled to any other payments in connection with her employment and/or the termination thereof, and shall have no further right to receive compensation or other consideration from the Company or have any other remedy whatsoever against the
Company, as a result of the termination of this Agreement or the termination of Executive. In no way does severance payment include any unearned, ineligible bonus compensation. 
 (b) Benefits. In the event Executive’s employment is terminated, the Executive may timely elect to continue healthcare
coverage through COBRA. 
 (c) Separation Agreement and General Release. 
 (i) Separation Agreement. To be eligible to receive severance pay under Section 5.5(b), Executive must execute and deliver
(and not revoke, if a revocation period is required by law) a separation agreement, in a form acceptable to the Company, within thirty (30) days following the Termination Date containing all provisions required by the Company, including but not
limited to (A) a provision reducing Executive’s severance pay by any income earned by Executive, whether as an employee, independent contractor or otherwise, for services performed by Executive, during the Severance Period; (B) a
confidentiality provision prohibiting disclosure by Executive; (C) a provision prohibiting disparagement of the Company by Executive; and (D) a non admission of liability by the Company provision. 

 (ii) Release. Notwithstanding any other provision of this Agreement to the
contrary, Executive acknowledges and agrees that any and all severance payments to which Executive is entitled under Section 5.5(b) are conditional upon, and subject to, Executive first executing a valid waiver and release of all claims that
Executive may have against the Company, its subsidiaries and affiliates (and their respective officers and directors) in a form substantially similar to that attached hereto as Exhibit A, subject to changes as may be warranted to be made to
such release to preserve the intent thereof for changes in applicable laws; provided, that, if Executive fails to execute (or revokes) such waiver and release of all claims within thirty (30) days following the Termination Date,
the Company shall have no obligation to provide the severance payments contemplated under Section 5.5(b). 
  

	 	6.	NON-SOLICITATION 

 Executive
acknowledges that by virtue of Executive’s position as the President and Chief Merchandise Officer of the Wet Seal division, and Executive’s employment hereunder, she will have advantageous familiarity with and knowledge about the Company
and will be instrumental in establishing and maintaining goodwill between the Company and its customers, which goodwill is the property of the Company. Therefore, Executive agrees as follows: 
 (a) During the Term, Executive will not engage (either directly or indirectly, as shareholder, partner, officer, director, consultant,
employee or otherwise) in any enterprise, nor perform any services of any kind whatsoever for or provide any financial assistance to any enterprise, in the retail clothing business other than through the Company or its subsidiaries and their
successors. 
 (b) During the Term, and for a period of one (1) year following the end of the Term, Executive will not,
either for herself or for any other person or entity, directly or indirectly (i) solicit, induce, recruit or encourage any of the Company’s employees to terminate their relationship with the Company, and/or (ii) attempt to solicit,
induce, recruit or encourage any of the Company’s employees to terminate their relationship with the Company; provided, however, that this restriction shall apply for one (1) year following the termination of Executive’s
employment, in the event Executive’s employment is terminated prior to the end of the Term pursuant to, and in accordance with, Sections 5.1 through 5.5. 
 (c) Executive acknowledges that any violation of any provision of this Section 6 by Executive will cause irreparable damages to the
Company, that such damages will be incapable of precise measurement and that, as a result, the Company will not have an adequate remedy at law to redress the harm which such violations will cause. Therefore, in the event of any violation of any
provision of this Section 6 by Executive, Executive agrees that the Company will be entitled to injunctive relief including, but not limited to, temporary and/or permanent restraining orders to restrain any violation of this Section 6 by
Executive. 
 (d) It is the desire and intent of the Parties that the provisions of this Section 6 shall be enforced to
the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any portion of this Section 6 shall be adjudicated to be invalid or unenforceable, this
Section 6 shall be deemed amended either to conform to such restrictions as the court or arbitrator may allow, or to delete therefrom or reform the portion thus adjudicated to be invalid and unenforceable, such deletion or reformation to apply
only with respect to the operation of this Section 6 in the particular jurisdiction in which such adjudication is made. It is expressly agreed that the arbitrator in any arbitration hereunder shall have the authority to modify this
Section 6 if necessary to render it enforceable, in such manner as to preserve as much as possible the Parties’ original intentions, as expressed herein, with respect to the scope hereof. 
  

	 	7.	CONFIDENTIALITY/TRADE SECRETS 

 7.1
Executive specifically agrees that Executive will not at any time, whether during or subsequent to the Term, in any fashion, form or manner, except in furtherance of Executive’s duties at the Company or with the specific written consent of the
Company, either directly or indirectly use, divulge, disclose or communicate to any person in any manner whatsoever, any confidential information or trade secrets of any kind, nature or description concerning any matters affecting or relating to the
business of the Company (the “Proprietary Information”), including (a) all information, design or software programs (including object codes and source codes), techniques, drawings, plans, experimental and research work,
inventions, patterns, processes and know-how, whether or not patentable, and whether or not at a commercial stage related to the Company or any subsidiary thereof, (b) buying habits or practices of any of its customers or vendors, (c) the
Company’s marketing methods, 

 
sales activities, promotion, credit and financial data and related information, (d) the Company’s costs or sources of materials, (e) the
prices it obtains or has obtained or at which it sells or has sold its products or services, (f) lists or other written records used in the Company’s business, (g) compensation paid to employees and other terms of employment, or
(h) any other confidential information of, about or concerning the business of the Company, its manner of operation, or other confidential data of any kind, nature, or description (excluding any information that is or becomes publicly known or
available for use through no fault of Executive or as directed by court order). The Parties hereto stipulate that as between them, Proprietary Information constitutes trade secrets that derive independent economic value, actual or potential, from
not being generally known to the public or to other persons who can obtain economic value or cause economic harm to the Company from its disclosure or use and that Proprietary Information is the subject of efforts which are reasonable under the
circumstances to maintain its secrecy and of which this Section 7.1 is an example, and that any breach of this Section 7.1 shall be a material breach of this Agreement. All Proprietary Information shall be and remain the Company’s
sole property. 
 7.2 Executive agrees to keep confidential and not to use or divulge except in furtherance of
Executive’s duties at the Company any confidential or proprietary information of any customer of the Company to which Executive may obtain access during the Term. Executive acknowledges and agrees that a breach of this Section 7.2 shall be
a material breach of this Agreement. 
  

	 	8.	INVENTIONS 

 8.1 Executive agrees to
disclose promptly to the Company any and all concepts, designs, inventions, discoveries and improvements related to the Company’s business that Executive may conceive, discover or make from the beginning of Executive’s employment with the
Company until the termination thereof; whether such is made solely or jointly with others, whether or not patentable, of which the conception or making involves the use of the Company’s time, facilities, equipment, personnel, supplies or trade
secret information (collectively, “Inventions”). 
 8.2 Executive agrees to assign, and does hereby
assign, to the Company (or its nominee) Executive’s right, title and interest in and to any and all Inventions that Executive may conceive, discover or make, either solely or jointly with others, whether or not patentable, from the beginning of
Executive’s employment with the Company until the termination thereof of which the conception or making involves the use of the Company’s time, facilities, equipment, personnel, supplies or trade secret information. 
 8.3 Executive agrees to sign at the request of the Company any instrument necessary for the filing and prosecution of patent applications
in the United States and elsewhere, including divisional, continuation, revival, renewal or reissue applications, covering any Inventions and all instruments necessary to vest title to such Inventions in the Company (or its nominee). Executive
further agrees to cooperate and assist the Company in preparing, filing and prosecuting any and all such patent applications and in pursuing or defending any litigation upon Inventions covered hereby. The Company shall bear all expenses involved in
the prosecution of such patent applications it desires to have filed. Executive agrees to sign at the request of the Company any and all instruments necessary to vest title in the Company (or its nominee) to any specific patent application prepared
by the Company and covering Inventions which Executive has agreed to assign to the Company (or its nominee) pursuant to Section 8.2 above. 
 8.4 The provisions of Sections 8.2 and 8.3 do not apply to any invention which qualifies fully under the provisions of Section 2870 of the California Labor Code, which provides in substance that provisions in an
employment agreement providing that an employee shall assign or offer to assign rights in an invention to his or her employer do not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was
used and which was developed entirely in the employee’s own time, except for those inventions that either (a) relate, at the time of conception or reduction to practice of the invention: (i) to the business of the employer or
(ii) to the employer’s actual or demonstrably anticipated research or development, or (b) result from any work performed by the employee for the employer. 

	 	9.	SHOP RIGHTS 

 The Company shall also have a perpetual, royalty-free,
non-exclusive right to use in its business, and to make, use, license and sell products, processes and/or services derived from any inventions, discoveries, designs, improvements, concepts, ideas, works of authorship, whether or not patentable,
including processes, methods, formulae, techniques or know-how related thereto, that are not within the scope of “Inventions” as defined above, but which are conceived or made by Executive during regular working hours or with the
Company’s facilities, equipment, personnel, supplies or trade secret information. 
  

	 	10.	INJUNCTIVE RELIEF 

 Executive acknowledges that any violation of any
provision of Sections 6 through 9 and Sections 12 through 14 hereof by Executive will cause irreparable damage to the Company, that such damages will be incapable of precise measurement and that, as a result, the Company will not have an adequate
remedy at law to redress the harm which such violations will cause. Therefore, in the event of any violation or threatened violation of any provision of Sections 6 through 9 and Sections 12 through 14 by Executive, in addition to any other rights at
law or in equity, Executive agrees that the Company will be entitled to seek injunctive relief including, but not limited to, temporary and/or permanent restraining orders to restrain any violation or threatened violation of such Sections by
Executive. 
  

	 	11.	BLUE PENCIL 

 It is the desire and intent of the Parties that the
provisions of Section 6 through 9 hereof shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any portion of Sections 6 through 9
shall be adjudicated to be invalid or unenforceable, such provision shall be deemed amended either to conform to such restrictions as the court or arbitrator may allow, or to delete therefrom or reform the portion thus adjudicated to be invalid and
unenforceable, such deletion or reformation to apply only with respect to the operation of such Section in the particular jurisdiction in which such adjudication is made. It is expressly agreed that any court or arbitrator shall have the authority
to modify any provision of Sections 6 through 9 if necessary to render it enforceable, in such manner as to preserve as much as possible the Parties’ original intentions, as expressed therein, with respect to the scope thereof. 
  

	 	12.	COPYRIGHT 

 Executive agrees that any work prepared
by Executive for the Company that is eligible for copyright protection under any U.S. or foreign law shall be a work made for hire and ownership of all copyrights (including all renewals and extensions therein) shall vest in the Company. In the
event any such work prepared by Executive for the Company is deemed not to be a work made for hire for any reason, Executive hereby irrevocably grants, transfers and assigns all right, title and interest in such work and all copyrights in such work
and all renewals and extensions thereof to the Company, and agrees to provide all assistance reasonably requested by the Company in the establishment, preservation and enforcement of its copyright in such work, such assistance to be provided at the
Company’s expense, but without any additional compensation to Executive. Executive agrees to and does hereby irrevocably waive all moral rights with respect to the work developed or produced hereunder, including any and all rights of
identification of authorship and any and all rights of approval, restriction or limitation on use or subsequent modifications. 
  

	 	13.	COMPANY’S AND EXECUTIVE’S DUTIES ON TERMINATION 

 In the
event of termination of Executive’s employment pursuant to Section 5, Executive agrees to deliver promptly to the Company all Proprietary Information which is or has been in Executive’s possession or under Executive’s control.
Upon termination of Executive’s employment by the Company for any reason whatsoever and at any earlier time the Company so requests, Executive will deliver to the custody of the person designated by the Company all originals and copies of such
documents and other property of the Company in Executive’s possession, under Executive’s control or to which Executive may have access. 

	 	14.	NON-DISPARAGEMENT 

 During the Term, for any reason, neither
Executive nor her agents, on the one hand, nor the Company, or its senior executives or the Board, on the other hand, shall directly or indirectly issue or communicate any public statement, or statement likely to become public, that maligns,
denigrates or disparages the other (including, in the case of communications by Executive or her agents, any of the Company’s officers, directors or employees). The foregoing shall not be violated by truthful responses to legal process or
governmental inquiry or by private statements to any of the Company’s officers, directors or employees; provided, that, in the case of Executive, such statements are made in the course of carrying out her duties pursuant to this
Agreement. 
  

	 	15.	SEVERANCE PAYMENTS 

 In addition to the foregoing, and not in any
way in limitation of any right or remedy otherwise available to the Company, if Executive violates any of Sections 6 through 9, or Sections 12 through 14 hereof, any severance payments then or thereafter due from the Company to Executive shall be
terminated immediately and the Company’s obligation to pay, and Executive’s right to receive, such severance payments shall terminate and be of no further force or effect. 
  

	 	16.	INDEMNIFICATION 

 The Company shall indemnify, defend and hold
Executive harmless from and against any and all causes of action, claims, demands, liabilities, damages, costs and expenses of any nature whatsoever directly or indirectly arising out of or related to Executive’s discharging Executive’s
duties hereunder on behalf of the Company and/or its respective subsidiaries and affiliates to the fullest extent permitted by law. 
  

	 	17.	REPRESENTATIONS AND WARRANTIES 

 17.1 Executive hereby represents and warrants to the Company, and Executive acknowledges, that the Company has relied on such representations and warranties in employing Executive and entering into this Agreement, as follows: 
 (a) Executive has the legal capacity and right to execute and deliver this Agreement and to perform her obligations contemplated hereby,
and this Agreement has been duly executed by Executive; 
 (b) the execution, delivery and performance of this Agreement by
Executive does not and will not, with or without notice or the passage of time, conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any judgment, order or decree to which
Executive is subject; 
 (c) Executive is not a party to or bound by any employment agreement, consulting agreement,
non-compete agreement, fee for services agreement, confidentiality agreement or similar agreement with any other person; 
 (d) upon the execution and delivery of this Agreement by the Company and Executive, this Agreement will be a legal, valid and binding obligation of Executive, enforceable in accordance with its terms; and 
 (e) Executive understands that the Company will rely upon the accuracy and truth of the representations and warranties of Executive set
forth herein and Executive consents to such reliance. 
 17.2 If it is determined that Executive is in breach or has breached
any of the representations and warranties set forth herein, the Company shall have the right to terminate Executive’s employment for Cause under Section 5.3. 

	 	18.	ARBITRATION 

 Any controversy arising out of or relating to this
Agreement, its enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with any of its provisions, or any other controversy arising out of Employee’s employment with the Company or the
termination of Employee’s employment with the Company, including, but not limited to, any state or federal statutory claims, shall be submitted to arbitration in Orange County, California, before a sole arbitrator selected from Judicial
Arbitration and Mediation Services, Inc., Orange County, California, or its successor (“JAMS”), or if JAMS is no longer able to supply the arbitrator, such arbitrator shall be selected from the American Arbitration
Association, and shall be conducted in accordance with the provisions of California Code of Civil Procedure §§ 1280 et seq. as the exclusive forum for the resolution of such dispute; provided, however, that provisional
injunctive relief may, but need not, be sought by either party to this Agreement in a court of law while arbitration proceedings are pending, and any provisional injunctive relief granted by such court shall remain effective until the matter is
finally determined by the arbitrator. Final resolution of any dispute through arbitration may include any remedy or relief which the arbitrator deems just and equitable, including any and all remedies provided by applicable state or federal
statutes. The Company shall bear all administrative costs of any arbitration initiated under this Section 18, including any filing fees and arbitrator fees. At the conclusion of the arbitration, the arbitrator shall issue a written decision
that sets forth the essential findings and conclusions upon which the arbitrator’s award or decision is based. Any award or relief granted by the arbitrator hereunder shall be final and binding on the Parties hereto and may be enforced by any
court of competent jurisdiction. The Parties acknowledge and agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the Parties against the other in connection with any matter
whatsoever arising out of or in any way connected with this Agreement. The arbitrator shall award reasonable attorney’s fees (including reasonable disbursements) to the party that the arbitrator has determined to be the prevailing party in such
arbitration. Except as may be necessary to enter judgment upon the award or to the extent required by applicable law, all claims, defenses and proceedings (including, without limiting the generality of the foregoing, the existence of the controversy
and the fact that there is an arbitration proceeding) shall be treated in a confidential manner by the arbitrator, the Parties and their counsel, and each of their agents, employees and all others acting on behalf of or in concert with them. Without
limiting the generality of the foregoing, no one shall divulge to any third party or person not directly involved in the arbitration the contents of the pleadings, papers, orders, hearings, trials, or awards in the arbitration, except as may be
necessary to enter judgment upon an award as required by applicable law. Any court proceedings relating to the arbitration hereunder, including, without limiting the generality of the foregoing, to prevent or compel arbitration or to confirm,
correct, vacate or otherwise enforce an arbitration award, shall be filed under seal with the court, to the extent permitted by law. 
  

	 	19.	GENERAL PROVISIONS 

 19.1
Assignment, Binding Effect. Neither the Company nor Executive may assign, delegate or otherwise transfer this Agreement or any of their respective rights or obligations hereunder without the prior written consent of the other party, except
that the Company may assign this Agreement to its successors (including any purchaser of its assets), and affiliates, parent or subsidiary corporations. This Agreement shall be binding upon and inure to the benefit of any permitted successors or
assigns of the Parties and the heirs, executors, administrators and/or personal representatives of Executive. 

 19.2 Notices. 
 (a) All notices, requests, demands or other communications that are required or may be given under this Agreement shall be in writing and
shall be given by personal delivery, by certified or registered United States mail (postage prepaid, return receipt requested), by a nationally recognized overnight delivery service for next day delivery, or by facsimile transmission, as follows (or
to such other address as any party may give in a notice given in accordance with the provisions hereof): 
 If to the Company,

 Vice President, Human Resources 
 The Wet Seal, Inc. 
 26972 Burbank 
 Foothill Ranch, CA 92610 
 Facsimile No.: (949) 699-4722 
 If to Executive, 
 [                ] 
 with a copy to:

 Her lawyer 
 (b) All notices, requests or other communications will be effective and deemed given only as follows: (i) if given by personal delivery, upon such personal delivery, (ii) if sent by certified or registered mail, on the fifth
business day after being deposited in the United States mail, (iii) if sent for next day delivery by overnight delivery service, on the date of delivery as confirmed by written confirmation of delivery, (iv) if sent by facsimile, upon the
transmitter’s confirmation of receipt of such facsimile transmission, except that if such confirmation is received after 5:00 p.m. (in the recipient’s time zone) on a business day, or is received on a day that is not a business day, then
such notice, request or communication will not be deemed effective or given until the next succeeding business day. Notices, requests and other communications sent in any other manner, including by electronic mail, will not be effective. 

19.3 Governing Law. This Agreement is governed by, and is to be construed and enforced in accordance with, the laws of
California without regard to principles of conflicts of laws. 
 19.4 Amendment; Waiver. No provisions of this
Agreement may be amended, modified or waived unless such amendment or modification is agreed to in writing signed by Executive and by a duly authorized officer selected at such time by the Board, and such waiver is set forth in writing and signed by
the party to be charged. 
 19.5 Entire Agreement. This Agreement (and the Exhibits attached hereto) sets forth the
entire agreement of the Parties hereto in respect of the subject matter contained herein and shall supersede all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto in respect of such subject matter. Any prior agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated and canceled as of the date hereof.

 19.6 Withholding. All payments hereunder shall be subject to any required withholding of federal, state and local
taxes pursuant to any applicable law or regulation. 
 19.7 Severability. The paragraphs and provisions of this
Agreement are severable. If any paragraph or provision is found to be unenforceable, the remaining paragraphs and provisions will remain in full force and effect. 
 19.8 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument. 
 19.9 Additional Covenant. The Parties hereto agree to make
such amendments from time to time to the terms and conditions of this Agreement as are necessary to ensure that this Agreement complies with the terms of Section 409A of the Code and any regulation or other official guidance promulgated
thereunder. 
 (signature page follows) 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as of the date first
written above. 
  

					
	THE WET SEAL, INC.
		
	By:	 	/s/ Edmond S. Thomas
		 	Name:	 	Edmond S. Thomas
		 	Title:	 	President & CEO
	
	/s/ Maria Comfort

 Exhibit A 
 Form of Release 
 20. 1. Termination of Employment.
[                ] (“Executive”) acknowledges that her last day of employment with The Wet Seal, Inc. and any of its affiliates (the
“Company”) is             , 20         (the “Termination Date”). 
 21. 2. Full Release. For the consideration set forth in the Employment Agreement, by and between the Company and Executive, dated as of
[            ], 2008, as amended and/or restated from time to time (the “Employment Agreement”) and for other fair and valuable consideration therefor, Executive,
for herself, her heirs, executors, administrators, successors and assigns (hereinafter collectively referred to as the “Releasors”), hereby fully releases and discharges the Company, its parents, subsidiaries, affiliates, insurers,
successors, and assigns, and their respective officers, directors, employees, and agents (all such persons, firms, corporations and entities being deemed beneficiaries hereof and are referred to herein as the “Company Entities”)
from any and all actions, causes of action, claims, obligations, costs, losses, liabilities, damages and demands of whatsoever character, whether or not known, suspected or claimed, which the Releasors have, from the beginning of time through the
date of this Release, against the Company Entities arising out of or in any way related to Executive’s employment or termination of her employment; provided, however, that this shall not be a release with respect to any amounts
and benefits owed to Executive pursuant to the Employment Agreement upon termination of employment, employee benefit plans of the Company, or Executive’s right to indemnification as provided in Section 16 of the Employment Agreement.

 22. 3. Waiver of Rights Under Other Statutes. Executive understands that this Release waives all claims and rights Executive may
have under certain federal, state and local statutory and regulatory laws, as each may be amended from time to time, including but not limited to, the Age Discrimination in Employment Act (including the Older Workers Benefit Protection Act)
(“ADEA”), Title VII of the Civil Rights Act; the Employee Retirement Income Security Act of 1974; the Equal Pay Act; the Rehabilitation Act of 1973; the Americans with Disabilities Act; the Worker Adjustment and Retraining
Notification Act; the California Fair Employment and Housing Act, the California Family Rights Act, California law regarding Relocations, Terminations, and Mass Layoffs, the California Labor Code; and all other statutes, regulations, common law, and
other laws in any and all jurisdictions (including, but not limited to, California) that in any way relate to Executive’s employment or the termination of her employment. 
 23. 4. Informed and Voluntary Signature. No promise or inducement has been made other than those set forth in this Release. This Release is
executed by Executive without reliance on any representation by the Company or any of its agents. Executive states that she is fully competent to manage her business affairs and understands that she may be waiving legal rights by signing this
Release. Executive hereby acknowledges that she has carefully read this Release and has had the opportunity to thoroughly discuss the terms of this Release with legal counsel of her choosing. Executive hereby acknowledges that she fully understands
the terms of this Release and its final and binding effect and that she affixes her signature hereto voluntarily and of her own free will. 
 24. 5. Waiver of Rights Under the Age Discrimination Act. Executive understands that this Release waives all of her claims and rights under the ADEA. The waiver of Executive’s rights under the ADEA does not extend to claims or
rights that might arise after the date this Release is executed. The monies to be paid to Executive are in addition to any sums to which Executive would be entitled without signing this Release. For a period of seven (7) days following
execution of this Release, Executive may revoke the terms of this Release by a written document received by the Chief Executive Officer of the Company no later than 11:59 p.m. of the seventh day following Executive’s execution of this Release.
The Release will not be effective until said revocation period has expired. Executive acknowledges that she has been given up to twenty-one (21) days to decide whether to sign this Release. Executive has been advised to consult with an attorney
prior to executing this Release and has been given a full and fair opportunity to do so. 

 25. 6. Waiver Of Civil Code Section 1542. It is the intention of the parties in signing this
Release that it should be effective as a bar to each and every claim, demand and cause of action stated above. In furtherance of this intention, Executive hereby expressly waives any and all rights and benefits conferred upon Executive by the
provisions of SECTION 1542 OF THE CALIFORNIA CIVIL CODE and expressly consents that this Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected
claims, demands and causes of action, if any, as well as those relating to any other claims, demands and causes of action referred to above. SECTION 1542 provides: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.” 
 26. 7. Miscellaneous. 
 (a) This Release shall be governed in all respects by the laws of the State of California without regard to the principles of conflict of
law. 
 (b) In the event that any one or more of the provisions of this Release is held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. Moreover, if any one or more of the provisions contained in this Release is held to be excessively broad as to
duration, scope, activity or subject, such provisions will be construed by limiting and reducing them so as to be enforceable to the maximum extent compatible with applicable law. 
 (c) This Release may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
 (d) The paragraph headings used in this Release are included solely for convenience
and shall not affect or be used in connection with the interpretation of this Release. 
 (e) This Release, the Employment
Agreement, the Stock Option Agreement and the Award Agreement (each as defined in the Employment Agreement) represent the entire agreement between the parties with respect to the subject matter hereto and may not be amended except in a writing
signed by the Company and Executive. If any dispute should arise under this Release, it shall be settled in accordance with the terms of Section 18 of the Employment Agreement. 
 (f) This Release shall be binding on the executors, heirs, administrators, successors and assigns of Executive and the successors and
assigns of Company and shall inure to the benefit of the respective executors, heirs, administrators, successors and assigns of the Company Entities and the Releasors. 
 IN WITNESS WHEREOF, the parties hereto have executed this Release on                 ,
20        . 
 THE WET SEAL, INC. 
  

			
	By:	 	 
	Name:	 	
	Title:	 	

 Exhibit B  
 THE WET SEAL, INC. 
 2005 STOCK INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 
 This Stock
Option Agreement (this “Agreement”) is made and entered into as of August 25, 2008 by and between The Wet Seal, Inc., Delaware corporation (the “Company”), and Maria Comfort, who is the President and
Chief Merchandise Officer of the Wet Seal division (“Participant”). Capitalized terms not defined herein will have the meaning ascribed to them in the Company’s 2005 Stock Incentive Plan, as amended and/or restated from
time to time (the “Plan”) 
  

			
	Total Option Shares:	  	60,000
		
	Exercise Price Per Share:	  	[            ]1
		
	Date of Grant:	  	[        ], 2008
		
	Expiration Date:	  	[        ], 20[        ]
		
	Type of Stock Option	  	
	(Check One):	  	  ̈        Incentive Stock Option, to the maximum extent
permissible

		  	 x       Nonqualified Stock Option

 1. Grant of Option. The Company hereby grants to Participant an option (this
“Option”) to purchase the total number of shares of Common Stock of the Company set forth above as Total Option Shares (the “Shares”) at the Exercise Price Per Share, subject to all of the terms and
conditions of this Agreement and the Plan. 
 2. Exercise Period. 
 26.1 2.1. Provided Participant continues to provide Continuous Service to the Company or any Subsidiary, this Option will become vested and exercisable
with respect to 33 1/3% of the Shares on each of the next three (3) anniversaries of the Date of Grant until this Option is 100% vested, subject to Executive’s Continuous Service with the Company on each of those vesting dates. Except as
provided in this Agreement, unvested Shares will not be exercisable on or after Participant’s termination of Continuous Service (“Termination Date”) and will immediately terminate on such Termination Date. 
 26.2 2.2. This Option will expire on the Expiration Date set forth above or earlier as provided in this Agreement or the Plan. 
 26.3 
 26.4 3. Termination of
Continuous Service. 
 26.5 3.1. If Participant’s Continuous Service is terminated, this Option will remain exercisable as
follows: 
  
  

	 1
	 Calculated based on the greater of (a) the closing price on the date of grant and (b) the 30 day average
closing price ending on and including the date of grant. 

 26.6 (a) If Participant’s termination of Continuous Service is due to death, all unvested Shares
will terminate and all vested Shares will be exercisable by Participant’s designated beneficiary, or if none, the person(s) to whom such Participant’s rights under this Option are transferred by will or the laws of descent and distribution
for one (1) year following the Termination Date (but in no event beyond the term of this Option). 
 26.7 (b) If Participant’s
termination of Continuous Service is due to Disability (as such term is defined in Participant’s Employment Agreement with the Company dated as of the date hereof (the “Employment Agreement”)), all unvested Shares will
terminate and all vested Shares will be exercisable by Participant for one (1) year following the Termination Date (but in no event beyond the term of this Option). 
 26.8 (c) If Participant’s termination of Continuous Service is due to termination for Cause (as such term is defined in the Employment Agreement) or voluntary termination without Good Reason (as such term is
defined in the Employment Agreement) by Participant, the Shares will terminate on the Termination Date, regardless of whether the Shares were then exercisable. 
 26.9 (d) If Participant’s termination of Continuous Service is due to any other reason, all unvested Shares will terminate on the Termination Date and all Shares (to the extent exercisable as of the Termination
Date) will be exercisable for a period of three (3) months following such Termination Date (but in no event beyond the term of this Option) and will thereafter terminate. Participant’s status as an employee will not be considered
terminated in the case of leave of absence agreed to in writing by the Company (including but not limited to military and sick leave); provided, that, such leave is for a period of not more than three (3) months or reemployment
upon expiration of such leave is guaranteed by contract or statute. 
 26.10 3.2. Nothing in the Plan or this Agreement will confer on
Participant any right to the continuation of service with the Company, or any of its Subsidiaries, or interfere in any way with the right of the Company or its Subsidiaries to terminate her Continuous Service at any time. 
 26.11 4. Manner of Exercise. 
 26.12 4.1. Participant (or in the case of exercise after Participant’s death or Disability, Participant’s executor, administrator, heir or legatee, as the case may be) may exercise this Option by giving written notice of exercise
to the Company in a form approved by the Company specifying the number Shares to be purchased. Such notice must be accompanied by the payment in full of the aggregate exercise price for the Shares to be acquired. The aggregate exercise price for the
Shares may be paid by in the following manner: (a) cash or certified or bank check, (b) surrender of Common Stock held by Participant for at least 6 months prior to exercise (or such longer or shorter period as may be required to avoid a
charge to earnings for financial accounting purposes) or the attestation of ownership of such shares, in either case, if so permitted by the Company, (c) if established by the Company, through a “same day sale” commitment from
Participant and a broker-dealer selected by the Company that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby Participant irrevocably elects to exercise this Option and to sell a
portion of the Shares so purchased sufficient to pay for the total exercise price and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the total exercise price directly to the Company, or (d) by any combination
of the foregoing, and, in all instances, to the extent permitted by applicable law. Participant’s subsequent transfer or disposition of any Shares acquired upon exercise of an Option will be subject to any Federal and state laws then
applicable, specifically securities law, and the terms and conditions of the Plan. 
 26.13 4.2. Upon (a) exercise of a Nonqualified
Stock Option or (b) under any other circumstances determined by the Committee in its sole discretion, the Company will have the right to require any Participant, and such Participant by accepting the Awards granted under the Plan agrees, to pay
to the Company the amount of any Federal, state, local income taxes or other taxes incurred by reason of the exercise of Option granted hereunder that the Company may be required to 

 
withhold with respect thereto. In the event of clauses (a) or (b), Participant will pay to the Company such amount as the Company deems necessary to
satisfy its minimum tax withholding obligation and such payment will be made: (i) in cash, (ii) to the extent authorized by the Committee, having the Company retain shares which would otherwise be delivered upon exercise of this Option,
(iii) to the extent authorized by the Committee, delivering or attesting to ownership of Shares owned by the holder of this Option for at least 6 months prior to the exercise of this Option (or such longer or shorter period as may be required
to avoid a change to earnings for financial accounting purposes), or (iv) any combination of any such methods. For purposes hereof, Shares will be valued at Fair Market Value. 
 26.14 5. Issuance of Shares. Except as otherwise provided in the Plan or this Agreement, as promptly as practicable after receipt of such
written notification of exercise and full payment of the Exercise Price and any required income tax withholding, the Company will issue or transfer to Participant the number of Shares with respect to which this Option have been so exercised (less
shares withheld in satisfaction of tax withholding obligations, if any), and will deliver to Participant a certificate or certificates therefor, registered in Participant’s name. 
 26.15 6. Company; Participant. 
 26.16 6.1. The term “Company” as used in this Agreement with reference to Continuous Service will include the Company and its Subsidiary, if any, as appropriate. 
 26.17 6.2. Whenever the word “Participant” is used in any provision of this Agreement under circumstances where the provision
should logically be construed to apply to the beneficiaries, the executors, the administrators, or the person or persons to whom this Option may be transferred by will or by the laws of descent and distribution, the word “Participant” will
be deemed to include such person or persons. 
 26.18 7. Non-Transferability. This Option is not transferable by Participant
otherwise than to a designated beneficiary upon death or by will or the laws of descent and distribution, and are exercisable during Participant’s lifetime only by her. No assignment or transfer of this Option, or of the rights represented
thereby, whether voluntary or involuntary, by operation of law or otherwise (except to a designated beneficiary, upon death, by will or the laws of descent and distribution), will vest in the assignee or transferee any interest or right herein
whatsoever, but immediately upon such assignment or transfer this Option will terminate and become of no further effect. 
 26.19 8.
Rights as Shareholder. Participant or a transferee of this Option will have no rights as shareholder with respect to any Shares until he or she will have become the holder of record of such Shares, and no adjustment will be made for
dividends or distributions or other rights in respect of such Shares for which the record date is prior to the date upon which he or she will become the holder of record thereof. 
 26.20 9. Adjustments. The Shares into which this Option is exercisable may be adjusted or terminated in any manner as contemplated by the
Plan. 
 26.21 10. Change of Control. Upon the occurrence of a Change of Control, all Options will become 100% vested and
exercisable; provided that, Participant is then in Continuous Service. 
 26.22 11. Compliance with Law. Notwithstanding any of
the provisions hereof, Participant hereby agrees that she will not exercise this Option, and that the Company will not be obligated to issue or transfer any shares to Participant hereunder, if the exercise hereof or the issuance or transfer of such
shares will constitute a violation by Participant or the Company of any provisions of any law or regulation of any governmental authority. Any determination in this connection by the Committee will be final, binding and conclusive. The Company will
in no event be obliged to register any securities pursuant to the Securities Act (as now in effect or as hereafter amended) or to take any other affirmative action in order to cause the exercise of this Option or the issuance or transfer of shares
pursuant thereto to comply with any law or regulation of any governmental authority. 

 26.23 12. Notice. Every notice or other communication relating to this Agreement will be in
writing, and will be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; provided, that, unless
and until some other address be so designated, all notices or communications by Participant to the Company will be mailed or delivered to the Company at its principal executive office, and all notices or communications by the Company to Participant
may be given to Participant personally or may be mailed to her at her address as recorded in the records of the Company. 
 26.24 13.
Binding Effect. Subject to Section 7 hereof, this Agreement will be binding upon the heirs, executors, administrators and successors of the parties hereto. 
 26.25 14. Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of California without
regard to its conflict of law principles. 
 26.26 15. Plan. The terms and provisions of the Plan are incorporated herein by
reference, and Participant hereby acknowledges receiving a copy of the Plan. In the event of a conflict or inconsistency between the discretionary terms and provisions of the Plan and the provisions of this Agreement, this Agreement will govern and
control. 
 26.27 16. Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement
will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon Participant and Participant’s beneficiaries, executors,
administrators and the person or persons to whom this Agreement may be transferred by will or the laws of descent or distribution. 
 26.28
17. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. 
 [SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in triplicate by its duly
authorized representative and Participant has executed this Agreement in triplicate, effective as of the Date of Grant. 
  

									
	THE WET SEAL, INC.	 		 	PARTICIPANT
				
	By:	 	 	 		 	 
		 	Name: Edmond S. Thomas	 		 		 	
		 	Title: President & CEO	 		 		 	

 Exhibit C 
 PERFORMANCE SHARE AWARD AGREEMENT 
 THIS PERFORMANCE SHARE AWARD AGREEMENT (this
“Agreement”), made as of August 25, 2008 (the “Effective Date”), by and between The Wet Seal, Inc. (the “Company”) and Maria
Comfort, the President and Chief Merchandise Officer of the Wet Seal division (the “Participant”), evidences the granting by the Company of stock awards of Performance Shares (as defined below) to the
Participant and the Participant’s acceptance of the Performance Shares. All capitalized terms not defined herein shall have the meaning ascribed to them in The Wet Seal, Inc. 2005 Stock Incentive Plan, as amended and as further amended and/or
restated from time to time (the “Plan”). 
 The Company and the Participant agree as follows: 
 1. Performance Shares Grants. 
 1.1 The Company
hereby grants as of the date hereof to the Participant an award of 90,000 shares of the Company’s Class A common stock, $0.10 par value per share (the “Common Stock”). The first 30,000 shares of such 90,000 shares
of the Common Stock is herein called the “Tranche 1 Shares”; the second 30,000 shares of such 90,000 shares of the Common stock is herein called the “Tranche 2 Shares”; and the remaining 30,000 shares
is herein called the “Tranche 3 Shares” (collectively with the Tranche 1 and Tranche 2 Shares, the “Performance Shares”). The Performance Shares shall be subject to the performance-based vesting terms
and conditions set forth in Section 2.1. 
 1.2 The Performance Shares shall be evidenced by book-entry registration with the
Company’s transfer agent, subject to such stop-transfer orders and other terms deemed appropriate by the Compensation Committee of the Board of Directors of the Company (the “Committee”) to reflect the restrictions
applicable to such Performance Shares. Notwithstanding the foregoing, if any certificate is issued in respect of the Performance Shares at the sole discretion of the Committee, such certificate shall be registered in the name of the Participant and
shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Performance Shares, substantially in the following form: 
 “THE TRANSFERABILITY OF THIS CERTIFICATE AND THE CLASS A COMMON STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE AWARD AGREEMENT DATED AS OFAUGUST 25,
2008, ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE WET SEAL, INC.” 
 If a certificate is issued with respect to any Performance Shares,
the Committee may require that the certificate evidencing such Performance Shares be held in custody by the Company until the restrictions thereon shall have lapsed and that the Participant shall have delivered a stock power, endorsed in blank,
relating to the Performance Shares covered by such award. At the expiration of the restrictions, the Company shall instruct the transfer agent to release the Performance Shares from the restrictions applicable to such Performance Shares, subject to
the terms of the Plan and applicable law or, in the event that a certificate has been issued, redeliver to the Participant (or his or her legal representative, beneficiary or heir) share certificates for the shares deposited with it without any
legend, except as otherwise provided by the Plan, this Agreement or applicable law. 
 During the period following the grant of the respective Performance
Shares hereunder, the Participant shall have the right to receive dividends on and to vote the respective Performance Shares while they are subject to restriction, except as otherwise provided in the Plan. 

 If the Performance Shares are forfeited, in whole or in part, the Participant will assign, transfer and deliver any
evidence of the Performance Shares to the Company and cooperate with the Company to reflect such forfeiture. By accepting these Performance Shares, the Participant acknowledges that the Company does not have an adequate remedy in damages for the
breach by the Participant of the conditions and covenants set forth in this Agreement and agrees that the Company is entitled to and may obtain an order or a decree of specific performance against the Participant issued by any court having
jurisdiction. 
 1.4 The issuance of the Performance Shares is made in consideration of the services rendered to the Company by the
Participant. The Company and the Participant acknowledge that the Performance Shares are issued pursuant to the authority of the Board of Directors. The Company is issuing the Performance Shares pursuant to the terms and conditions of the Plan.

 1.5 Except as provided in the Plan or this Agreement, the restrictions on the Performance Shares are that prior to vesting as provided in
Section 3 of this Agreement, the Performance Shares will be forfeited by the Participant and all of the Participant’s rights to such Performance Shares shall immediately terminate without any payment or consideration by the Company, in the
event of any sale, assignment, transfer, hypothecation, pledge or other alienation of such Performance Shares made or attempted, whether voluntary or involuntary, and if involuntary whether by process of law in any civil or criminal suit, action or
proceeding, whether in the nature of an insolvency or bankruptcy proceeding or otherwise. 
 2. Vesting. 
 2.1 Vesting of Performance Shares. 
 (a)(i) On or following the first anniversary of the Effective Date, 15,000 of the Tranche 1 Shares shall vest if, at any time following the Effective Date through the third anniversary thereof (the “Tranche
1 Vesting Period”), the weighted average closing price of the Company’s Class A Common Stock for any trailing 20 trading days (the “20-Day Average”) equals or exceeds $6.00 per share (the
“Tranche 1 Base Price”); and 
 (ii) on or following the first anniversary of the Effective Date, the
remaining 15,000 of the Tranche 1 Shares shall vest if, at any time during the Tranche 1 Vesting Period, the 20-Day Average equals or exceeds 120% of the Tranche 1 Base Price. 
 For the avoidance of doubt, if the 20-Day Average equals or exceeds 120% of the Tranche 1 Base Price at any time during the Tranche 1 Vesting Period,
100% of the Performance Shares in Tranche 1 shall vest. 
 (b)(i) On or following the second anniversary of the Effective
Date, 15,000 of the Tranche 2 Shares shall vest if, at any time following the first anniversary of the Effective Date through the third anniversary thereof (the “Tranche 2 Vesting Period”), the 20-Day Average equals or
exceeds $8.64 per share (the “Tranche 2 Base Price”); and 
 (ii) on or following the second
anniversary of the Effective Date, the remaining 15,000 of the Tranche 2 Shares shall vest if, at any time during the Tranche 2 Vesting Period the 20-Day Average equals or exceeds 120% of the Tranche 2 Base Price. 
 For the avoidance of doubt, if the 20-Day Average equals or exceeds 120% of the Tranche 2 Base Price at any time during the Tranche 2 Vesting Period,
100% of the Performance Shares in Tranche 2 shall vest. 
 (c)(i) On or following the third anniversary of the Effective Date,
15,000 of the Tranche 3 Shares shall vest if, at any time following the second anniversary of the Effective Date through the third anniversary thereof (the “Tranche 3 Vesting Period”), the 20-Day Average equals or exceeds
$12.44 per share (the “Tranche 3 Base Price”); and 

 (ii) on or following the third anniversary of the Effective Date, the remaining 15,000 of
the Tranche 3 Shares shall vest if, at any time during the Tranche 3 Vesting Period, the 20-Day Average equals or exceeds 120% of the Tranche 3 Base Price. 
 For the avoidance of doubt, if the 20-Day Average equals or exceeds 120% of the Tranche 3 Base Price at any time during the Tranche 3 Vesting Period, 100% of the Performance Shares Tranche 3 shall vest. 
 (d) If any of the Performance Shares granted hereunder are still outstanding as of the third anniversary of the Effective Date and have
not otherwise vested after giving effect to the vesting provisions of clauses (a), (b) and (c) above as of 4:00 p.m. (local time in New York on such date), the unvested Performance Shares shall automatically be forfeited without the
payment of any consideration to the Participant. 
 (e) If the Participant ceases to be in Continuous Service of the Company
at any time and for any reason prior to the vesting of the Performance Shares or notifies the Company of her intention to cease her continuing service, all unvested Performance Shares that are still outstanding upon such termination of employment
shall automatically be forfeited without the payment of any consideration to the Participant upon such cessation of service. 
 (f) Notwithstanding the terms set forth in the Plan and/or any other stockholder-approved equity incentive plan, none of the Performance Shares will be subject to accelerated vesting thereunder. 
 27. 3. Company; Participant. 
 28. 3.1
The term “Company” as used in this Agreement with reference to service shall include the Company and its Affiliates, as appropriate. 
 3.2 Whenever the word “Participant” is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the beneficiaries, the
executors, the administrators, or the person or persons to whom the Performance Shares may be transferred by will or by the laws of descent and distribution, the word “Participant” shall be deemed to include such person or
persons. 
 4. Adjustments. The Performance Shares may be adjusted as provided for in Section 12 of the Plan and the Committee shall not exercise
any discretion under Section 10.4 of the Plan to reduce Participant’s Performance Shares hereunder. 
 5. Compliance with Law.
Notwithstanding any of the provisions hereof, the Company will not be obligated to issue or transfer any Performance Shares to the Participant hereunder, if the exercise thereof or the issuance or transfer of such Performance Shares shall constitute
a violation by the Participant or the Company of any provisions of any law or regulation of any governmental authority. Any determination in this connection by the Committee shall be final, binding and conclusive. The Company shall take all
appropriate steps, including, to the extent necessary, the filing of an appropriate registration statement at its sole expense, such that Participant may sell the Performance Shares upon the lapse of the restrictions set forth herein, subject to the
Company’s insider trading policies. 
 6. No Right to Continued Service. Nothing in this Agreement or in the Plan shall confer upon the
Participant any right to continue in the service of the Company or shall interfere with or restrict in any way the rights of the Company, which are hereby expressly reserved, to terminate the services of or discharge the Participant at any time for
any reason whatsoever, with or without cause. Except as provided herein, the Participant acknowledges and agrees that the continued vesting of the Performance Shares is premised upon Executive’s provision of future services to the Company and
the Performance Shares shall not accelerate upon her termination of Continuous Service for any reason. 

 7. Representations and Warranties of the Participant. The Participant represents and warrants to the Company that:

 7.1 The Participant acknowledges that there may be adverse tax consequences upon the vesting of the Performance Shares or disposition of
the Performance Shares once vested, and that the Participant should consult a tax adviser prior to such time. 
 7.2 The Participant agrees
to sign such additional documentation as may reasonably be required from time to time by the Company. 
 8. Taxes. 
 8.1 The Participant agrees that, subject to Section 8.2 below, no later than the date as of which the respective restrictions on each of the
Performance Shares shall lapse with respect to all or any of the Performance Shares, as the case may be, covered by this Agreement, the Participant shall pay to the Company (by check or wire transfer) any federal, state or local income and
employment taxes of any kind required by law to be withheld, if any, with respect to the Performance Shares for which the restrictions shall lapse; provided, that the Participant may elect to satisfy this withholding obligation by having the Company
withhold from the Participant the number of Performance Shares, as applicable, having a Fair Market Value equal to the tax withholding obligation in respect of the Performance Shares that vest (but no more than the minimum amount of shares required
to be withheld by the Company that can be satisifed through the withholding of the shares). The Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Participant any federal, state
or local taxes of any kind required by law to be withheld with respect to the Performance Shares. 
 8.2 With respect to each grant of
Performance Shares hereunder, if the Participant properly elects (within thirty (30) days of the grant date of such Performance Shares) to include in gross income for federal income tax purposes an amount equal to the Fair Market Value of such
Performance Shares as of the date on which such Performance Shares were granted pursuant to Section 83(b) of the Code, the Participant shall pay to the Company, or make other arrangements satisfactory to the Committee to pay to the Company in
the year of such grant, any federal, state or local taxes required to be withheld with respect to such Performance Shares. If the Participant fails to make such payments, the Company or its affiliates shall, to the extent permitted by law, have the
right to deduct from any payment of any kind otherwise due to the Participant any federal, state or local taxes of any kind required by law to be withheld with respect to such Performance Shares. 
 9. Notice. All notices, requests, demands or other communications that are required or may be given under this Agreement shall be in writing and shall be given by
personal delivery, by certified or registered United States mail (postage prepaid, return receipt requested), by a nationally recognized overnight delivery service for next day delivery, or by facsimile transmission, as follows (or to such other
address as any party may give in a notice given in accordance with the provisions hereof): 
 If to the Company, 

Vice President, Human Resources 
 The Wet Seal, Inc. 
 26972 Burbank 
 Foothill Ranch, CA 92610 
 Facsimile No.: (949) 699-4722 

 If to Executive, 
 [                    ]

 with a copy to: 
 Her lawyer 
 All notices, requests or other communications will be effective and deemed given only as follows: (i) if
given by personal delivery, upon such personal delivery, (ii) if sent by certified or registered mail, on the fifth business day after being deposited in the United States mail, (iii) if sent for next day delivery by overnight delivery
service, on the date of delivery as confirmed by written confirmation of delivery, (iv) if sent by facsimile, upon the transmitter’s confirmation of receipt of such facsimile transmission, except that if such confirmation is received after
5:00 p.m. (in the recipient’s time zone) on a business day, or is received on a day that is not a business day, then such notice, request or communication will not be deemed effective or given until the next succeeding business day. Notices,
requests and other communications sent in any other manner, including by electronic mail, will not be effective. 
 10. Governing Law. This Agreement
shall be construed and interpreted in accordance with the laws of the State of California without regard to its conflict of law principles. 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written. 
  

			
	THE WET SEAL, INC.
		
	By:	 	 
		 	Name: Edmond S. Thomas
		 	Title: President & CEO
	
	PARTICIPANT

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