Document:

Exhibit 4.1

 

EXECUTION COPY

 

AMENDMENT NO. 1

 

Dated as of December 2, 2019

 

to

 

CREDIT AGREEMENT

 

Dated as of April 25, 2018

 

THIS AMENDMENT NO. 1
(this “Amendment”) is made as of December 2, 2019 by and among Pentair Finance S.à r.l., a Luxembourg
private limited liability company (Société à responsabilité limitée) having its registered
office at 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg and registered with the Luxembourg Trade and Companies
Register (Registre de commerce et des sociétés, Luxembourg) under number B.166305 (the “Company”),
Pentair plc (the “Parent”), Pentair Investments Switzerland GmbH (the “Swiss Guarantor”,
together with the Parent, the “Guarantors”) and Pentair, Inc. (the “Affiliate Borrower”,
collectively with the Company and the Guarantors, the “Loan Parties”), the Lenders party hereto and JPMorgan
Chase Bank, N.A., in its capacity as administrative agent for the Lenders (the “Administrative Agent”), under
that certain Credit Agreement dated as of April 25, 2018, by and among the Loan Parties, the Lenders from time to time party thereto
and the Administrative Agent (as amended, restated, supplemented or otherwise modified from time to time prior to the date hereof,
the “Credit Agreement”). Capitalized terms used herein and not otherwise defined herein shall have the respective
meanings given to them in the Credit Agreement.

 

WHEREAS, the Loan Parties
have requested that certain Lenders agree to provide additional term loans under Section 9.02(d) of the Credit Agreement
and that the Required Lenders agree to make certain modifications to the Credit Agreement;

 

WHEREAS, the Loan Parties,
the Lenders party hereto and the Administrative Agent have agreed to amend the Credit Agreement on the terms and conditions set
forth herein;

 

NOW, THEREFORE, in consideration
of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Loan Parties, the Lenders party hereto and the Administrative Agent hereby
agree to enter into this Amendment.

 

1.              Amendments
to the Credit Agreement. Effective as of the date of satisfaction of the conditions precedent set forth in Section 2
below (such date, the “Amendment Effective Date”):

 

(a) The
parties hereto agree that the Credit Agreement (including the Schedules and Exhibits thereto) shall be amended to delete the stricken
text (indicated textually in the same manner as the following example: stricken text)
and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined
text) as set forth in the pages of the Credit Agreement (including the Schedules and Exhibits thereto) attached as Annex
A hereto (the Credit Agreement as so amended, the “Amended Credit Agreement”).

 

(b) The
parties hereto acknowledge and agree that this Amendment is being entered into and consummated pursuant to Section 9.02(d)
of the Credit Agreement.

 

     

     

    

 

(c) The
parties hereto acknowledge and agree that each Lender that executes this Amendment as a Lender and which also has a Term Loan Commitment
listed opposite its name in Schedule 2.01 set forth in the Amended Credit Agreement shall be and is a Term Lender under
the Amended Credit Agreement.

 

2.               Conditions
of Effectiveness. This Amendment shall become effective as of the first date on which each of the following conditions shall
have been satisfied:

 

(a)             The
Administrative Agent (or its counsel) shall have received either (A) counterparts of this Amendment duly executed by each
of the Loan Parties, the Required Lenders, each Lender with a Term Loan Commitment under the Amended Credit Agreement and the
Administrative Agent or (B) written evidence satisfactory to the Administrative Agent (which may include facsimile or electronic
transmission of an executed signature page of this Amendment) that such parties have executed counterparts of this Amendment.

 

(b)             The
Administrative Agent (or its counsel) shall have received a favorable written opinion (addressed to the Administrative Agent and
the Lenders and dated the Amendment Effective Date) of each of (i) Foley & Lardner LLP, special counsel for the Loan Parties,
(ii) Arthur Cox, special Irish counsel for the Loan Parties, (iii) Allen & Overy, Société en Commandite Simple,
inscrite au barreau de Luxembourg, special Luxembourg counsel for the Loan Parties and (iv) Bär & Karrer Ltd., special
Swiss counsel for the Loan Parties, in each case in form and substance reasonably satisfactory to the Administrative Agent and
its counsel and covering such matters relating to the Loan Parties, this Amendment and the Amended Credit Agreement as the Administrative
Agent shall reasonably request. The Company hereby requests such counsels to deliver such opinions.

 

(c)             The
Administrative Agent shall have received such other documents and certificates as the Administrative Agent or its counsel may
reasonably request relating to the organization, existence and good standing (or the equivalent) of the Loan Parties, the authorization
of this Amendment, the Amended Credit Agreement and any other legal matters relating to the Loan Parties, the Amendment and the
Amended Credit Agreement, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

(d)            With
respect to the Swiss Guarantor, the Administrative Agent shall have received a copy of the resolutions of its managing officers
approving the terms of, and the transactions contemplated by, this Amendment and the Amended Credit Agreement, authorizing a specified
person or persons to execute this Amendment on its behalf and to sign and/or dispatch on its behalf all other documents and notices
in connection with this Amendment and the Amended Credit Agreement.

 

(e)             The Administrative Agent shall have received a certificate, dated the Amendment Effective Date and signed by a Financial
Officer of the Company, certifying compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02
of the Amended Credit Agreement.

 

(f)              (i) The
Administrative Agent shall have received, at least five (5) days prior to the Amendment Effective Date, all documentation and
other information regarding any Borrower requested in connection with applicable “know your customer” and anti-money
laundering rules and regulations, including the Patriot Act, to the extent requested in writing of the Company at least ten (10)
days prior to the Amendment Effective Date and (ii) to the extent any Borrower qualifies as a “legal entity customer”
under the Beneficial Ownership Regulation, at least five (5) days prior to the Amendment Effective Date, any Lender that has requested,
in a written notice to the Company at least ten (10) days prior to the Amendment Effective Date, a Beneficial Ownership Certification
in relation to such Borrower shall have received such Beneficial Ownership Certification (provided that, upon the execution and
delivery by such Lender of its signature page to this Amendment, the condition set forth in this clause (f) shall be deemed to
be satisfied).

 

    2 

     

    

 

(g)             The
Administrative Agent shall have received for the account of each Term Lender that delivers its executed signature page to this
Amendment by no later than the date and time specified by the Administrative Agent (in consultation with the Company), an upfront
fee in respect of its Term Loan Commitment in an amount equal to the applicable amount previously disclosed to the Term Lenders
(and established by the Administrative Agent in consultation with the Company).

 

(h)             (i) The
Administrative Agent shall have received payment and/or reimbursement of the Administrative Agent’s and its affiliates’
fees and expenses (including the reasonable, documented and invoiced fees, disbursements and other charges of one primary counsel
(and one additional local counsel in each applicable jurisdiction) for the Administrative Agent) in accordance with the Loan Documents,
and (ii) U.S. Bank National Association in its capacity as lead-left Arranger in respect of the Term Loan Facility (as defined
in the Amended Credit Agreement) shall have received payment and/or reimbursement of its and its affiliates’ fees and expenses,
in each case to the extent invoiced (in reasonable detail) to the Company at least one (1) Business Day prior to the Amendment
Effective Date.

 

The Administrative Agent shall notify the
Company and the Lenders of the Amendment Effective Date, and such notice shall be conclusive and binding.

 

3.               Representations and Warranties of the Loan Parties. Each Loan Party hereby represents and warrants as follows:

 

(a)             Each
of this Amendment and the Amended Credit Agreement constitutes a valid and binding agreement of each Loan Party enforceable against
the applicable Loan Parties in accordance with its terms, except to the extent that the enforceability thereof may be limited
by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter affecting
creditors’ rights generally, any mandatory applicable provisions of Luxembourg law of general application and general principles
of equity.

 

(b)            As
of the date hereof and immediately after giving effect to the terms of this Amendment, (i) no Default has occurred and is continuing
and (ii) the representations and warranties of the Borrowers set forth in the Credit Agreement (other than the representations
contained in Sections 3.04(c) and 3.05 of the Credit Agreement) are true and correct in all material respects (provided
that any representation or warranty that is qualified by materiality or Material Adverse Effect is true and correct in all
respects), or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such
specific date.

 

4.               Confirmation
of Guarantees. Each Guarantor, by its execution of this Amendment, hereby consents to this Amendment and confirms and ratifies
that all of its obligations as a Guarantor under the Amended Credit Agreement shall continue in full force and effect for the
benefit of the Administrative Agent and the Lenders with respect to the Amended Credit Agreement and, for the avoidance of doubt,
acknowledges and agrees and confirms that the Term Loans made by the Term Lenders to the Company on the Amendment Effective Date
are part of the “Guaranteed Obligations” that are guaranteed by the Guarantors under the Amended Credit Agreement.

 

5.               Reference
to and Effect on the Credit Agreement.

 

(a)             From
and after the effectiveness of the amendment to the Credit Agreement evidenced hereby, the terms “Agreement”, “this
Agreement”, “herein”, “hereinafter”, “hereto”, “hereof” and words of similar
import, as used in the Amended Credit Agreement, shall, unless the context otherwise requires, refer to the Amended Credit Agreement,
and the term “Credit Agreement”, as used in the other Loan Documents, shall mean the Amended Credit Agreement.

 

    3 

     

    

 

(b)             Each
Loan Document and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain
in full force and effect and are hereby ratified and confirmed.

 

(c)             The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy
of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement, the Loan Documents
or any other documents, instruments and agreements executed and/or delivered in connection therewith.

 

(d)            This
Amendment shall be a Loan Document.

 

6.               Governing Law; Jurisdiction. This Amendment shall be construed in accordance with and governed by the law
of the State of New York. Each Loan Party hereby irrevocably and unconditionally submits, for itself and its property, to only
the jurisdiction of (i) the Supreme Court of the State of New York sitting in New York County, Borough of Manhattan, and of the
United States District Court for the Southern District of New York sitting in the Borough of Manhattan and (ii) any U.S. federal
or Illinois state court sitting in Chicago, Illinois, and in each case any appellate court from any thereof, in any action or proceeding
arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined
in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Amendment or any other Loan Document shall affect any right that the Administrative
Agent, any Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Amendment or any other
Loan Document against any Loan Party or its properties in the courts of any jurisdiction.

 

7.               Headings. Section headings in this Amendment are included herein for convenience of reference only and shall
not constitute a part of this Amendment for any other purpose.

 

8.               Counterparts.
This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of a signature page
of this Amendment by telecopy, e-mailed .pdf or any other electronic means that reproduces an image of the actual executed signature
page shall be effective as delivery of a manually executed counterpart of this Amendment.

 

[Signature Pages Follow]

 

    4 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and delivered by their respective authorized officers as of the day
and year first above written.

 

	 	PENTAIR FINANCE S.À R.L.,
	 	as the Company
	 	 
	 	 
	 	By:	/s/ James Charles Lucas
	 	Name: James Charles Lucas
	 	Title: Manager

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    5 

     

    

 

	 	Pentair Investments Switzerland GmbH,
	 	as the Swiss Guarantor
	 	 
	 	 
	 	By:	/s/ James Charles Lucas
	 	Name: James Charles Lucas
	 	Title: Managing Officer

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    6 

     

    

 

	 	PENTAIR PLC,
	 	as the Parent
	 	 
	 	 
	 	By:	/s/ Mark C. Borin
	 	Name: Mark C. Borin
	 	Title: Chief Financial Officer

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    7 

     

    

 

	 	Pentair INC.,
	 	as a Borrower
	 	 
	 	 
	 	By:	/s/ Mark C. Borin
	 	Name: Mark C. Borin
	 	Title: President

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    8 

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,
	 	individually as a Lender and as Administrative Agent
	 	 
	 	 
	 	By:	/s/ Suzanne Ergastolo
	 	Name: Suzanne Ergastolo
	 	Title: Executive Director

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    9 

     

    

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Tyrone Parker
	 	Name: Tyrone Parker
	 	Title: Vice President

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    10 

     

    

 

	 	BANK OF MONTREAL, LONDON BRANCH,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Wesley M. Anderson
	 	Name: Wesley M. Anderson
	 	Title: Director

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    11 

     

    

 

	 	CITIBANK, N.A.,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Brian Reed
	 	Name: Brian Reed
	 	Title: Vice President

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    12 

     

    

 

	 	HSBC BANK USA, NATIONAL ASSOCIATION,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Fik Durmus
	 	Name: Fik Durmus
	 	Title: Managing Director

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    13 

     

    

 

	 	MUFG BANK, LTD.,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Kevin Sillona
	 	Name: Kevin Sillona
	 	Title: Authorized Signatory

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    14 

     

    

 

	 	PNC BANK, NATIONAL ASSOCIATION,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Edward Han
	 	Name: Edward Han
	 	Title: Vice President

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    15 

     

    

 

	 	INTESA SANPAOLO S.P.A., New York Branch
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Manuela Insana
	 	Name: Manuela Insana
	 	Title: VP & Relationship Manager
	 	 
	 	 
	 	By:	/s/Alessandro Toigo
	 	Name: Alessandro Toigo
	 	Title: Head of Corporate Desk

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    16 

     

    

 

	 	BANK OF CHINA, LOS ANGELES BRANCH,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Yong Ou
	 	Name: Yong Ou
	 	Title: SVP & Branch Manager

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    17 

     

    

 

	 	ING BANK N.V., DUBLIN BRANCH,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Sean Hassett
	 	Name: Sean Hassett
	 	Title: Director
	 	 
	 	 
	 	By:	/s/Pádraig Matthews
	 	Name: Pádraig Matthews
	 	Title: Director

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    18 

     

    

 

	 	BANCO BILBAO VIZCAYA ARGENTARIA, S.A. NEW YORK BRANCH,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Brian Crowley
	 	Name: Brian Crowley
	 	Title: Managing Director
	 	 
	 	 
	 	By:	/s/ Miriam Trautmann
	 	Name: Miriam Trautmann
	 	Title: Senior Vice President

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    19 

     

    

 

	 	BANK OF AMERICA, N.A.,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Stephen J. D’Elia
	 	Name: Stephen J. D’Elia
	 	Title: Vice President

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    20 

     

    

 

	 	DEUTSCHE BANK AG NEW YORK BRANCH,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Ming K. Chu
	 	Name: Ming K. Chu
	 	Title: Director
	 	 
	 	By:	/s/ Virginia Cosenza
	 	Name: Virginia Cosenza
	 	Title: Vice President

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    21 

     

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Adam Spreyer
	 	Name: Adam Spreyer
	 	Title: Director

 

Signature Page to Amendment No. 1 to

Credit Agreement dated as of April 25, 2018

Pentair Finance S.à r.l.

 

    22 

     

    

 

ANNEX A

 

Attached

 

    23 

     

    

 

 

 

CREDIT AGREEMENT

 

dated as of

 

April 25, 2018

 

among

 

PENTAIR plc

as Parent,

 

PENTAIR INVESTMENTS SWITZERLAND GMBH,

as Swiss Guarantor,

 

PENTAIR FINANCE S.À R.L.

as Company,

 

PENTAIR, INC.

as an Affiliate Borrower

 

The Other Affiliate Borrowers From Time
to Time Party Hereto,

 

The Lenders Party Hereto,

 

JPMORGAN CHASE BANK, N.A.

as Administrative Agent,

 

BANK OF AMERICA, N.A.

MUFG BANK, LTD.

CITIBANK, N.A. and

U.S. BANK NATIONAL ASSOCIATION

as Syndication Agents for
the Revolving Credit Facility,

 

and

 

U.S.
BANK NATIONAL ASSOCIATION

as
Syndication Agent for the Term Loan Facility,

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

HSBC BANK USA, NATIONAL ASSOCIATION

BANCO BILBAO VIZCAYA ARGENTARIA, S.A. NEW
YORK BRANCH

BANK OF MONTREAL, LONDON BRANCH and INTESA
SANPAOLO S.P.A.

as
Documentation Agents for the Revolving Credit Facility,

 

and

 

BANK
OF AMERICA, N.A. and

WELLS
FARGO BANK, NATIONAL ASSOCIATION

as Documentation Agents for
the Term Loan Facility

 

JPMORGAN CHASE BANK, N.A.

 

MERRILL LYNCH, PIERCE,
FENNER & SMITH INCORPORATED

BofA
SECURITIES, INC.

MUFG BANK, LTD.

CITIGROUP GLOBAL MARKETS INC. and

U.S. BANK NATIONAL ASSOCIATION

as
Joint Bookrunners and Joint Lead Arrangers for the Revolving Credit Facility,

 

and

 

U.S.
BANK NATIONAL ASSOCIATION

JPMORGAN
CHASE BANK, N.A.

BofA
SECURITIES, INC. and

WELLS
FARGO SECURITIES, LLC

as Joint Bookrunners and Joint Lead Arrangers
for the Term Loan Facility

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE I. DEFINITIONS	5
	 	 
	 	SECTION 1.01	Defined Terms	5
	 	SECTION 1.02	Classification of Loans and Borrowings	3436
	 	SECTION 1.03	Terms Generally	3436
	 	SECTION 1.04	Accounting Terms; GAAP	3537
	 	SECTION 1.05	Interest Rates	3537
	 	SECTION 1.06	Luxembourg Terms	3537
	 	SECTION 1.07	Certain Calculations	3638
	 	SECTION 1.08	Divisions	38
	 	 
	ARTICLE II. THE CREDITS	3638
	 	 
	 	SECTION 2.01	Commitments	3638
	 	SECTION 2.02	Loans and Borrowings	3638
	 	SECTION 2.03	Requests for Revolving Borrowings	3739
	 	SECTION 2.04	Determination of Dollar Amounts	3840
	 	SECTION 2.05	Swingline Loans	3840
	 	SECTION 2.06	Letters of Credit	4042
	 	SECTION 2.07	Funding of Borrowings	4547
	 	SECTION 2.08	Interest Elections	4648
	 	SECTION 2.09	Termination and Reduction of Commitments	4749
	 	SECTION 2.10	Repayment of Loans; Evidence of Indebtedness	4850
	 	SECTION 2.11	Prepayment of Loans	4951
	 	SECTION 2.12	Fees 	5052
	 	SECTION 2.13	Interest	5154
	 	SECTION 2.14	Alternate Rate of Interest	5255
	 	SECTION 2.15	Increased Costs	5457
	 	SECTION 2.16	Break Funding Payments	5558
	 	SECTION 2.17	Taxes 	5658
	 	SECTION 2.18	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	6366
	 	SECTION 2.19	Mitigation Obligations; Replacement of Lenders	6567
	 	SECTION 2.20	Expansion Option	6568
	 	SECTION 2.21	Market Disruption	6769
	 	SECTION 2.22	Judgment Currency	6770
	 	SECTION 2.23	Designation of Affiliate Borrowers	6770
	 	SECTION 2.24	Defaulting Lenders	6871
	 	SECTION 2.25	Extension of Maturity Date	7073
	 	 
	ARTICLE III. REPRESENTATIONS AND WARRANTIES	7275
	 	 
	 	SECTION 3.01	Corporate Existence and Power	7275
	 	SECTION 3.02	Corporate and Governmental Authorization; Contravention	7275
	 	SECTION 3.03	Binding Effect	7275
	 	SECTION 3.04	Financial Information	7275
	 	SECTION 3.05	Litigation, etc.	7376
	 	SECTION 3.06	ERISA Compliance	7376
	 	SECTION 3.07	Taxes	7376
	 	SECTION 3.08	Not an Investment Company	7376
	 	SECTION 3.09	Environmental Matters	7376
	 	SECTION 3.10	Use of Proceeds	7377
	 	SECTION 3.11	Disclosure	7377
	 	SECTION 3.12	Anti-Corruption Laws and Sanctions	7477

 

     

     

    

 

	 	SECTION 3.13	Domiciliation; Centre of Main Interests	7477
	 	SECTION 3.14	Swiss Non-Bank Rules	7578
	 	SECTION 3.15	EEA Financial Institutions	7578
	 	SECTION 3.16	Irish Loan Party	7578
	 	SECTION 3.17	Tax Residence	7578
	 	 
	ARTICLE IV. CONDITIONS	7578
	 	 
	 	SECTION 4.01	Effective Date	7578
	 	SECTION 4.02	Each Credit Event	7679
	 	SECTION 4.03	Designation of an Affiliate Borrower	7680
	 	 
	ARTICLE V. AFFIRMATIVE COVENANTS	7881
	 	 
	 	SECTION 5.01	Information.	7881
	 	SECTION 5.02	Use of Proceeds	7983
	 	SECTION 5.03	Compliance with Contractual Obligations and Laws	8083
	 	SECTION 5.04	Insurance	8083
	 	SECTION 5.05	Ownership of Borrowers	8083
	 	SECTION 5.06	Payment of Taxes	8083
	 	SECTION 5.07	Swiss Non-Bank Rule	8084
	 	SECTION 5.08	Loan Party Location	8084
	 	SECTION 5.09	Tax Residence	8184
	 	SECTION 5.10	Service of Process Agent	8184
	 	 
	ARTICLE VI. NEGATIVE COVENANTS	8184
	 	 
	 	SECTION 6.01	Maximum Net Leverage Ratio	8184
	 	SECTION 6.02	Minimum Interest Coverage Ratio	8185
	 	SECTION 6.03	Negative Pledge	8185
	 	SECTION 6.04	Consolidations, Mergers and Sales of Assets; Acquisitions	8487
	 	SECTION 6.05	Subsidiary Debt	8487
	 	SECTION 6.06	OFAC and Anti-Corruption Laws	8588
	 	 
	ARTICLE VII. EVENTS OF DEFAULT	8689
	 	 
	ARTICLE VIII. THE ADMINISTRATIVE AGENT	8892
	 	 
	 	SECTION 8.01	Authorization and Action	8892
	 	SECTION 8.02	Administrative Agent’s Reliance, Indemnification, Etc.	9194
	 	SECTION 8.03	Posting of Communications	9295
	 	SECTION 8.04	The Administrative Agent Individually	9396
	 	SECTION 8.05	Successor Administrative Agent	9396
	 	SECTION 8.06	Acknowledgement of Lenders and Issuing Banks	9497
	 	SECTION 8.07	Certain ERISA Matters	9497
	 	 
	ARTICLE IX. MISCELLANEOUS	9699
	 	 
	 	SECTION 9.01	Notices	9699
	 	SECTION 9.02	Waivers; Amendments	97100
	 	SECTION 9.03	Expenses; Indemnity; Damage Waiver	99102
	 	SECTION 9.04	Successors and Assigns	101104
	 	SECTION 9.05	Survival	106109
	 	SECTION 9.06	Counterparts; Integration; Effectiveness; Electronic Execution	106109
	 	SECTION 9.07	Severability	106110
	 	SECTION 9.08	Right of Setoff	106110
	 	SECTION 9.09	Governing Law; Jurisdiction; Consent to Service of Process	107110
	 	SECTION 9.10	WAIVER OF JURY TRIAL	108111
	 	SECTION 9.11	Headings	108112
	 	SECTION 9.12	Confidentiality	108112

 

     

     

    

 

	 	SECTION 9.13	USA PATRIOT Act	110113
	 	SECTION 9.14	Interest Rate Limitation	110113
	 	SECTION 9.15	No Fiduciary Duty, etc	110113
	 	SECTION 9.16	Acknowledgement and Consent to Bail-In of EEA Financial Institutions	111114
	 	SECTION 9.17	Confirmation of Lender’s Status as Swiss Qualifying Lender	111114
	 	SECTION 9.18	Acknowledgement Regarding Supported QFCs	115
	 	 
	ARTICLE X. GUARANTEE	111115
	 	 
	 	SECTION 10.01	Guaranty	111115
	 	SECTION 10.02	Swiss Limitation Language for Swiss Guarantor or Swiss Borrower	113117

 

	SCHEDULES:	 	 
	 	 	 
	Schedule 2.01	--	Commitments
	Schedule 2.05	--	Swingline Sublimits
	Schedule 6.03	--	List of Existing Liens
	Schedule 6.05	--	Existing Debt
	 	 	 
	EXHIBITS:	 	 
	 	 	 
	Exhibit A	--	Form of Assignment and Assumption
	Exhibit B-1	--	Form of Opinion of Foley & Lardner LLP
	Exhibit B-2	--	Form of Opinion of Arthur Cox
	Exhibit B-3	--	Form of Opinion of Allen & Overy
	Exhibit B-4	--	Form of Opinion of Bär & Karrer Ltd.
	Exhibit C-1	--	Form of Increasing Lender Supplement
	Exhibit C-2	--	Form of Augmenting Lender Supplement
	Exhibit DD-1	--	Form of Revolving Credit Note
	Exhibit D-2	--	Form of Term Loan Note
	Exhibit E	--	List of Closing Documents
	Exhibit F-1	--	Form of Affiliate Borrowing Agreement
	Exhibit F-2	--	Form of Affiliate Borrowing Termination
	Exhibit G-1	--	Form of Borrowing Request
	Exhibit G-2	--	Form of Interest Election Request
	Exhibits H-1-4	--	Form of U.S. Tax Compliance Certificates
	Exhibit I	--	Form of Irish Qualifying Lender Confirmation

 

     

     

    

 

CREDIT AGREEMENT (this
“Agreement”) dated as of April 25, 2018 among PENTAIR plc, an Irish public limited company, PENTAIR FINANCE
S.À R.L., a Luxembourg private limited liability company (Société à responsabilité limitée)
having its registered office at 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg and registered with the Luxembourg
Trade and Companies Register (Registre de commerce et des sociétés,
Luxembourg) under number B 166305, PENTAIR INVESTMENTS SWITZERLAND GMBH, a Swiss limited liability company (Gesellschaft
mit beschränkter Haftung), with company number CHE-188.406.956 and its registered address at Freier Platz 10, 8200 Schaffhausen,
Switzerland, PENTAIR, INC., a Minnesota corporation, the other AFFILIATE BORROWERS from time to time party hereto, the LENDERS
from time to time party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent, BANK OF AMERICA, N.A., MUFG BANK, LTD., CITIBANK,
N.A. and U.S. BANK NATIONAL ASSOCIATION, as Syndication Agents and WELLS FARGO BANK, NATIONAL ASSOCIATION, HSBC BANK USA, NATIONAL
ASSOCIATION, BANCO BILBAO VIZCAYA ARGENTARIA, S.A. NEW YORK BRANCH, BANK OF MONTREAL, LONDON BRANCH and INTESA SANPAOLO S.P.A.,
as Documentation Agents.

 

NOW, THEREFORE, in consideration of the
premises and the mutual covenants contained herein, the parties hereto agree as follows:

 

ARTICLE I.

 

DEFINITIONS

 

SECTION 1.01 Defined Terms. As used
in this Agreement, the following terms have the meanings specified below:

 

“ABR”, when used in reference
to any Loan or Borrowing, refers to such Loan, or the Loans comprising such Borrowing, bearing interest at a rate determined by
reference to the Alternate Base Rate.

 

“Acquisition” means any
transaction or series of related transactions (excluding any transaction solely among the Parent and/or one or more persons that
are already Subsidiaries) that result, directly or indirectly, in (a) the acquisition by the Parent or any Subsidiary of all or
substantially all of the assets of a Person, or of all or substantially all of any business or division of a Person, (b) the acquisition
of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person, or otherwise causing
any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person; provided that
the Parent or a Subsidiary is the ultimate surviving entity.

 

“Additional Commitment Lender”
has the meaning assigned to such term in Section 2.25(d).

 

“Adjusted LIBO Rate”
means, with respect to any Eurocurrency Borrowing for any Interest Period, an interest rate per annum equal to (a) the LIBO Rate
for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

“Administrative Agent”
means JPMCB (including its branches and affiliates) in its capacity as administrative agent for the Lenders hereunder, and any
successor administrative agent arising under Section 9.04.

 

“Administrative Questionnaire”
means an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

“Affiliate”
means, as to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common
control with, such Person. A Person shall be deemed to be “controlled by” any other Person if such other Person possesses,
directly or indirectly, power to direct or cause the direction of the management and policies of such Person whether by contract
or otherwise (but, for the avoidance of doubt, no individual shall be deemed to be an Affiliate of a Person solely because such
individual is a director (or the equivalent thereof) or senior officer of such Person).

 

     

     

    

 

“Affiliate Borrower Sublimit” means
$300,000,000.

 

“Affiliate Borrowers”
means, collectively, the Initial Affiliate Borrower and any Eligible Subsidiary that becomes an Affiliate Borrower pursuant to
Section 2.23 and, in each case, that has not ceased to be an Affiliate Borrower; and “Affiliate Borrower”
means any of the Affiliate Borrowers.

 

“Affiliate Borrowing Agreement”
means an Affiliate Borrowing Agreement substantially in the form of Exhibit F-1.

 

“Affiliate Borrowing Termination”
means an Affiliate Borrowing Termination substantially in the form of Exhibit F-2.

 

“Agent Indemnitee” has the meaning
assigned to it in Section 9.03(c).

 

“Aggregate
Commitment” means the aggregate of the Commitments of all of the Lenders, as reduced or increased from
time to time pursuant to the terms and conditions hereof. As of the Effective Date, the Aggregate Commitment is $800,000,000.

 

“Agreed Currencies” means
with respect to (a) Revolving Loans, Agreed Loan Currencies and (b) Letters of Credit, Agreed LC Currencies.

 

“Agreed LC Currencies”
means (a) the Agreed Loan Currencies and (b) any other currency that is (i) readily available and freely transferable and convertible
into Dollars and (ii) agreed to by the Company, the Administrative Agent and the relevant Issuing Bank.

 

“Agreed Loan
Currencies” means (i) Dollars, (ii) euro, (iii) Pounds Sterling and (iv) any other currency (A) that is a lawful currency
(other than Dollars) that is readily available and freely transferable and convertible into Dollars, (B) for which a LIBOR Screen
Rate is available in the Administrative Agent’s reasonable determination and (C) that is agreed to by the Administrative
Agent and each of the Revolving Lenders.

 

“Agreement” means this Credit Agreement.

 

“Alternate Base Rate”
means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect
on such day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period in Dollars on such day (or if such
day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that for the purpose of this
definition, the Adjusted LIBO Rate for any day shall be based on the LIBO Rate (or if the LIBO Rate is not available for such one
month Interest Period, the Interpolated Rate) at approximately 11:00 a.m. London time on such day. Any change in the Alternate
Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate shall be effective from and including the
effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate, respectively. If the Alternate Base
Rate is being used as an alternate rate of interest pursuant to Section 2.14 hereof, then the Alternate Base Rate shall be the
greater of clause (a) and (b) above and shall be determined without reference to clause (c) above. For the avoidance of doubt,
if the Alternate Base Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this
Agreement.

 

“Alternative Rate” has the meaning
assigned to such term in Section 2.14(a).

 

    7

     

    

 

“Amendment
No. 1 Effective Date” means December 2, 2019.

 

“Anti-Corruption Laws”
means all laws, rules, and regulations of any jurisdiction applicable to the Parent and its affiliated companies concerning or
relating to bribery or corruption.

 

“Applicable LC Sublimit”
means (i) with respect to JPMCB in its capacity as an Issuing Bank under this Agreement, $40,000,000, (ii) with respect to Bank
of America, N.A. in its capacity as an Issuing Bank under this Agreement, $40,000,000, (iii) with respect to MUFG Bank, Ltd. in
its capacity as an Issuing Bank under this Agreement, $40,000,000, (iv) with respect to Citibank, N.A. in its capacity as an Issuing
Bank under this Agreement, $40,000,000, (v) with respect to U.S. Bank National Association in its capacity as an Issuing Bank under
this Agreement, $40,000,000 and (vi) with respect to any other Person that becomes an Issuing Bank pursuant to the terms of this
Agreement, such amount as agreed to in writing by the Company, the Administrative Agent and such Person at the time such Person
becomes an Issuing Bank pursuant to the terms of the Agreement, as each of the foregoing amounts may be decreased or increased
from time to time with the written consent of the Company, the Administrative Agent and the Issuing Banks (provided that any increase
in the Applicable LC Sublimit with respect to any Issuing Bank shall only require the consent of the Company and such Issuing Bank).

 

“Applicable
Maturity Date” has the meaning assigned to such term in Section 2.25(a).

 

“Applicable
Percentage” means, with respect to any Lender, (a) with respect
to Revolving Loans, Revolving Credit Exposure, LC Exposure or Swingline Loans, the percentage of
the Aggregate Commitment represented byequal to a fraction
the numerator of which is such Lender’s Revolving
Commitment; provided that, in the case of Section 2.24 when a Defaulting Lender shall
exist, “Applicable Percentage” shall mean the percentage of the Aggregate Commitment (disregarding any Defaulting
Lender’s Commitment) represented by such Lender’s Commitment. If the and
the denominator of which is the aggregate Revolving Commitments of all Revolving Lenders (if the Revolving Commitments
have terminated or expired, the Applicable Percentages shall be determined based upon the Revolving
Commitments most recently in effect, giving effect to any assignments and to any Lender’s
status as); provided that in the case of Section 2.24
when a Defaulting Lender at the time of determination.shall
exist, any such Defaulting Lender’s Revolving Commitment shall be disregarded in the calculation and (b) with respect to
the Term Loans, a percentage equal to a fraction the numerator of which is such Lender’s outstanding principal amount of
the Term Loans and the denominator of which is the aggregate outstanding principal amount of the Term Loans of all Term Lenders.

 

“Applicable
Rate” means, for any day, with respect to any Eurocurrency Loan or any ABR Loan,Revolving
Loan, any Eurocurrency Term Loan, any ABR Revolving Loan, any ABR Term Loan or with respect to the facility fees payable
hereunder, as the case may be, the applicable rate per annum set forth below under the caption “Eurocurrency Spread”
or for Revolving Loans”, “Eurocurrency
Spread for Term Loans”, “ABR Spread for Revolving
Loans”, “ABR Spread for Term Loans” or “Facility Fee Rate”, as the case may be, based
upon the Pricing Level applicable on such date.

 

	 	 	 	 	 	 	 	 	 	 	 	Eurocurr	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	ency	 	 	ABR	 
	 	 	 	 	 	Eurocurrency	 	 	 	 	 	Spread	 	 	Spread	 
	Pricing	 	 	 	 	Spread for	 	 	ABR Spread for	 	 	for Term	 	 	for Term	 
	Level	 	Facility Fee	 	 	Revolving Loans	 	 	Revolving Loans	 	 	Loans	 	 	Loans	 
	Level I	 	 	0.10	%	 	 	0.90	%	 	 	0	%	 	 	0.75	%	 	 	0	%
	Level II	 	 	0.125	%	 	 	1.00	%	 	 	0	%	 	 	0.875	%	 	 	0	%
	Level III	 	 	0.15	%	 	 	1.10	%	 	 	0.10	%	 	 	1.00	%	 	 	0	%
	Level IV	 	 	0.175	%	 	 	1.20	%	 	 	0.20	%	 	 	1.125	%	 	 	0.125	%
	Level V	 	 	0.25	%	 	 	1.50	%	 	 	0.50	%	 	 	1.50	%	 	 	0.50	%

 

    8

     

    

 

For purposes hereof: (i) Pricing Level I, Leverage Level 1 and
Ratings Level A are equivalent and correspond to each other, (ii) Pricing Level II, Leverage Level 2 and Ratings Level B are equivalent
and correspond to each other, (iii) Pricing Level III, Leverage Level 3 and Ratings Level C are equivalent and correspond to each
other, (iv) Pricing Level IV, Leverage Level 4 and Ratings Level D are equivalent and correspond to each other and (v) Pricing
Level V, Leverage Level 5 and Ratings Level E are equivalent and correspond to each other.

 

At any time of determination, the Pricing Level shall be determined
by reference to the Leverage Level or the Ratings Level, as the Company shall from time to time elect by written notice to the
Administrative Agent, and any change in Pricing Level resulting from such election by the Company shall be effected as promptly
as practicable by the Administrative Agent after receiving such written election from the Company. Notwithstanding anything to
the contrary set forth in this definition, it is understood and agreed that Pricing Level IV shall be deemed to be applicable from
the Effective Date until the Administrative Agent’s receipt of the financial statements and related compliance certificate
for the Parent’s first full fiscal quarter ending after the Effective Date (it being understood and agreed that the Company
shall not be permitted to elect pricing by reference to the Ratings Level until such receipt by the Administrative Agent of such
financial statements and compliance certificate), and adjustments to the Pricing Level then in effect shall thereafter be effected
in accordance with the terms of this definition.

 

Leverage Level Determination

 

	Leverage Level	Net Leverage Ratio
	 	 
	Level 1	≤ 0.50 to 1.00
	 	 
	Level 2	> 0.50 to 1.00 but
	 	≤ 1.00 to 1.00
	Level 3	> 1.00 to 1.00 but
	 	≤ 1.75 to 1.00
	Level 4	>1.75 to 1.00 but
	 	≤ 2.50 to 1.00
	Level 5	> 2.50 to 1.00
	 	 

 

If at any time the Parent fails to deliver the quarterly or
annual financial statements or related compliance certificates required under Section 5.01 on or before the date such statements
or certificates are due, Leverage Level 5 shall be deemed applicable for the period commencing three (3) Business Days after such
required date of delivery and ending on the date which is three (3) Business Days after such statements or certificates are actually
delivered, after which the Leverage Level shall be determined in accordance with this definition.

 

Except as otherwise provided in the paragraph below or in the
immediately preceding paragraph, adjustments, if any, to the Leverage Level then in effect shall be effective three (3) Business
Days after the Administrative Agent has received the applicable financial statements and certificates (it being understood and
agreed that each change in Leverage Level shall apply during the period commencing on the effective date of such
change and ending on the date immediately preceding the effective date of the next such change).

 

    9

     

    

 

Ratings Level Determination

 

	Ratings Level	Public Debt Ratings
	 	(S&P / Moody’s / Fitch)
	 	 
	Level A	A- / A3 / A- or higher
	 	 
	Level B	BBB+ / Baa1 / BBB+
	 	 
	Level C	BBB / Baa2 / BBB
	 	 
	Level D	BBB- / Baa3 / BBB-
	 	 
	Level E	BB+ / Ba1 / BB+ or lower
	 	 

 

For purposes of the foregoing, (a) if only one of S&P, Moody’s
or Fitch shall have in effect a Public Debt Rating, the Ratings Level shall be determined by reference to the available rating;
(b) if none of S&P, Moody’s or Fitch shall have in effect a Public Debt Rating, the Ratings Level will be set in accordance
with Level E; (c) if all three of the rating agencies shall have a Public Debt Rating in effect and the ratings established by
each of S&P, Moody’s and Fitch shall fall within three different Levels in the immediately foregoing table (such Level
A, Level B, Level C, Level D and Level E, collectively, the “Levels” and each a “Level”),
the Ratings Level shall be based upon the intermediate Level; (d) if all three of the rating agencies shall have a Public Debt
Rating in effect and two out of the three ratings of S&P, Moody’s and Fitch are at the same Level, then the Ratings Level
shall be based on such Level, (e) if only two Public Debt Ratings from S&P, Moody’s and Fitch are available and such
ratings fall within different Levels, then the Ratings Level shall be based on the higher rating unless such ratings differ by
two or more Levels, in which case the applicable Ratings Level will be deemed to be one Level above the lower of such Levels, (f)
if any rating established by S&P, Moody’s or Fitch shall be changed, such change shall be effective as of the date on
which such change is first announced publicly by the rating agency making such change; (g) if S&P, Moody’s or Fitch shall
change the basis on which ratings are established, each reference to the Public Debt Rating announced by S&P, Moody’s
or Fitch, as the case may be, shall refer to the then equivalent rating by S&P, Moody’s or Fitch, as the case may be
(and if there is no such equivalent rating, to the rating most recently in effect prior to such change); and (h) if any such rating
agency shall cease to be in the business of rating corporate debt obligations, the Company and the Lenders shall negotiate in good
faith to amend this definition to reflect the unavailability of ratings from such rating agency and, pending the effectiveness
of such amendment, the Ratings Level shall be determined by reference to the rating (and the Level applicable thereto) most recently
in effect prior to such cessation.

 

“Approved Electronic Platform”
has the meaning assigned to it in Section 8.03(a).

 

“Approved Fund” has the meaning
assigned to such term in Section 9.04.

 

“Approved Jurisdictions”
means Ireland, Switzerland, Luxembourg, the United States and England and Wales.

 

“Arrangers”
means (i) each of JPMCB, Merrill
Lynch, Pierce, Fenner & Smith IncorporatedBofA
Securities, Inc., MUFG Bank, Ltd., Citigroup Global Markets Inc. and U.S. Bank National Association in its capacity
as a joint bookrunner and joint lead arranger hereunder. for
the Revolving Credit Facility and (ii) each of U.S. Bank National Association, JPMCB, BofA Securities, Inc. and Wells Fargo Securities,
LLC in its capacity as a joint bookrunner and joint lead arranger hereunder for the Term Loan Facility.

 

    10

     

    

 

“Assignment
and Assumption” means an assignment and assumption agreement entered into by a Lender and an assignee (with the consent
of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit
A or any other form approved by the Administrative Agent.

 

“Augmenting
Lender” is defined in Section 2.20.

 

“Availability
Period” means the period from and including the Effective Date to but excluding the earlier of the Revolving
Credit Maturity Date and the date of termination of the Revolving
Commitments.

 

“Bail-In
Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect
of any liability of an EEA Financial Institution.

 

“Bail-In
Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European
Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is
described in the EU Bail-In Legislation Schedule.

 

“Banking
Services” means each and any of the following bank services provided to the Parent or any Subsidiary by any Lender or
any of its Affiliates: (a) credit cards for commercial customers (including, without limitation, commercial credit cards and purchasing
cards), (b) stored value cards, (c) merchant processing services and (d) treasury management services (including, without limitation,
controlled disbursement services, automated clearinghouse transactions, return items services, any direct debit scheme or arrangement,
overdraft services and interstate depository network services).

 

“Banking
Services Agreement” means any agreement entered into by the Parent or any Subsidiary in connection with Banking Services.

 

“Bankruptcy
Event” means, with respect to any Person, such Person becomes the subject of a voluntary or involuntary bankruptcy or
insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors
or similar Person charged with the reorganization or liquidation of its business appointed for it, or, in the good faith determination
of the Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence
in, any such proceeding or appointment or has had any order for relief in such proceeding entered in respect thereof, provided
that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest,
in such Person by a Governmental Authority or instrumentality thereof, unless such ownership interest results in or provides such
Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of
attachment on its assets or permits such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow
or disaffirm any contracts or agreements made by such Person.

 

“Beneficial
Ownership Certification” means a certification regarding beneficial ownership or control as required by the Beneficial Ownership
Regulation.

 

“Beneficial
Ownership Regulation” means 31 C.F.R. § 1010.230.

 

“Benefit
Plan” means any of (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is
subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to which Section 4975 of the
Code applies, and (c) any Person whose assets include (for purposes of the Plan Asset Regulations or otherwise for purposes
of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or
“plan”.

 

    	 	11	 

     

    

 

“BHC
Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance
with, 12 U.S.C. 1841(k)) of such party.

 

“Board”
means the Board of Governors of the Federal Reserve System of the United States.

 

“Borrower”
means the Company or any Affiliate Borrower.

 

“Borrowing”
means (a) Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Eurocurrency Loans,
as to which a single Interest Period is in effect or,
(b) a Term Loan of the same Type, made, converted or continued
on the same date and, in the case of Eurocurrency Loans, as to which a single Interest Period is in effect or (c) a
Swingline Loan.

 

“Borrowing
Request” means a request by any Borrower for a Revolving Borrowing
in accordance with Section 2.03 in substantially the form attached hereto as Exhibit G-1 or such other form as the
Administrative Agent may approve from time to time.

 

“Business
Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized
or required by law to remain closed; provided that, when used in connection with a Eurocurrency Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in the relevant Agreed Currency in the London
interbank market or the principal financial center of such Agreed Currency (and, if the Borrowings or LC Disbursements which are
the subject of a borrowing, drawing, payment, reimbursement or rate selection are denominated in euro, the term “Business
Day” shall also exclude any day on which the TARGET2 payment system is not open for the settlement of payments in euro).

 

“Cash
Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Administrative
Agent, the applicable Issuing Bank and the Revolving Lenders,
as collateral or support for the LC Exposure, cash or deposit account balances, or a standby letter of credit from a financial
institution satisfactory to the Administrative Agent, in each case pursuant to documentation in form and substance reasonably
satisfactory to the Administrative Agent and the applicable Issuing Bank (which documents are hereby consented to by the Lenders).
Derivatives of such term shall have corresponding meanings.

 

“Change
in Law” means the occurrence, after the Effective Date (or with respect to any Lender, if later, the date on which such
Lender becomes a Lender), of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b)
any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof
by any Governmental Authority, or (c) the making or issuance of any request, rule, guideline, requirement or directive (whether
or not having the force of law) by any Governmental Authority; provided however, that notwithstanding anything herein to
the contrary, except to the extent they are merely proposed and not in effect, (i) the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines, requirements and directives thereunder, issued in connection therewith or in
implementation thereof, and (ii) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International
Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign
regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law” regardless
of the date enacted, adopted, issued or implemented.

 

“Charges”
has the meaning assigned to such term in Section 9.14.

 

    	 	12	 

     

    

 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving
Loans, Term Loans or Swingline Loans.

 

“Code”
means the Internal Revenue Code of 1986.

 

“Combination”
has the meaning assigned to such term in Section 2.09(b).

 

“Combined
Lender” has the meaning assigned to such term in Section 2.09(b).

 

“Commitment”
means, (a) the Revolving Commitments and the Term Loan Commitments
and (b) with respect to each Lender, the commitment of such Lender to make Revolving
Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the
maximum aggregate amountsum of such Lender’s
Revolving Credit Exposure hereunder, as such commitment may be (a) reduced or terminated from
time to time pursuant to Section 2.09, (b) increased from time to time pursuant to Section
2.20 and (c) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant
to Section 9.04Commitment and
Term Loan Commitment. The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or
in the Assignment and Assumption or other documentation or record (as such term is defined in Section 9-102(a)(70) of the New
York Uniform Commercial Code) as provided in Section 9.04(b)(ii)(C) or other documentation contemplated hereby pursuant to which
such Lender shall have assumed its Commitment pursuant to the terms
hereof, as applicable.

 

“Commodity
Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor
statute.

 

“Communications”
means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any
Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent,
any Lender or any Issuing Bank by means of electronic communications pursuant to Section 8.03(c), including through an Approved
Electronic Platform.

 

“Company”
means Pentair Finance S.à r.l., a Luxembourg private limited liability company (Sociétésociété
à responsabilité limitée), having its registered office at 26, Boulevard Royal, L-2449 Luxembourg,
Grand Duchy of Luxembourg and registered with the Luxembourg Trade and Companies Register (R.C.S.Registre
de commerce et des sociétés, Luxembourg) under number B.166305.

 

“Computation
Date” is defined in Section 2.04.

 

“Connection
Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that
are franchise Taxes or branch profits Taxes.

 

“Consolidated
Subsidiary” means, as of any date, any Subsidiary or other entity the accounts of which would be consolidated with those
of the Parent in its consolidated financial statements as of such date prepared in accordance with GAAP.

 

“Consolidated
Total Assets” means the total consolidated assets of the Parent and its Subsidiaries, in each case determined in accordance
with GAAP.

 

    	 	13	 

     

    

 

“Country
Risk Event” means:

 

(a)          any
law, action or failure to act by any Governmental Authority in any Borrower’s or Letter of Credit beneficiary’s country
which has the effect of:

 

(i)       changing
the obligations of any Issuing Bank or the Lenders under the relevant Letter of Credit, the Agreement or any of the other Loan
Documents as originally agreed or otherwise creating any additional liability, cost or expense to any Issuing Bank, the Lenders
or the Administrative Agent from that which exists on the Effective Date,

 

(ii)      changing
the ownership or control by such Borrower or Letter of Credit beneficiary of its business, or

 

(iii)     preventing
or restricting the conversion into or transfer of the applicable Agreed Currency;

 

(b)          force
majeure; or

 

(c)          any
similar event,

 

which, in relation to (a), (b) and
(c), directly or indirectly, prevents or restricts the payment or transfer of any amounts owing under the relevant Letter of Credit
in the applicable Agreed Currency into an account designated by the Administrative Agent or such Issuing Bank and freely available
to the Administrative Agent or such Issuing Bank.

 

“Covered
Entity” means any of the following:

 

(i)
a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

 

(ii)
a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

 

(iii)
a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

 

“Covered
Party” has the meaning assigned to it in Section 9.18.

 

“Credit
Event” means a Borrowing, the issuance, renewal or extension of a Letter of Credit, the amendment of a Letter of Credit
that increases the face amount thereof, an LC Disbursement or any of the foregoing.

 

“Credit
Exposure” means, as to any Lender at any time, the sum of (a) such Lender’s Revolving Credit Exposure at such time,
plus (b) an amount equal to the aggregate principal amount of its Term Loans outstanding at such time.

 

“Credit
Party” means the Administrative Agent, the Issuing Banks, the Swingline Lenders or any other Lender.

 

    	 	14	 

     

    

 

“Debt”
means, with respect to any Person at any date, without duplication, (i) all obligations of such Person for borrowed money,
(ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations
of such Person to pay the deferred purchase price of property or services, except trade accounts payable and accrued
liabilities (including employee compensation and benefit obligations) arising in the ordinary course of business, (iv) the
outstanding principal obligations of such Person as lessee under capital leases, (v) all Debt of others secured by a Lien on
any asset of such Person, whether or not such Debt is assumed by such Person (it being understood that if such Debt has not
been assumed by such Person, the amount of such Debt shall be deemed to be the lesser of the fair market value at such date
of such asset and the amount of such Debt), (vi) the aggregate outstanding investment or claim held by purchasers, assignees
or transferees of (or of interests in) receivables of such Person in connection with any Securitization Transaction, (vii)
all non-contingent reimbursement obligations of such Person under letters of credit and bank guarantees, and (viii) all Debt
(as defined above) of others Guaranteed by such Person. Notwithstanding the foregoing, Debt shall exclude (a) any
“earnouts” or similar obligations accrued in respect of any Permitted Acquisition, (b) any obligations in respect
of customer advances in the ordinary course of business consistent with past practices and (c) defeased and/or discharged
indebtedness so long as (i) neither the Parent nor any Subsidiary has any liability (contingent or otherwise) with respect to
such indebtedness and (ii) the cash, securities and/or other assets used to defease and/or discharge such indebtedness are
not, directly or indirectly, an asset of the Parent or any Subsidiary. In the event any of the foregoing Debt is limited to
recourse against a particular asset or assets of such Person, the amount of the corresponding Debt shall be equal to the
lesser of the amount of such Debt and the fair market value of such asset or assets at the date for determination of the
amount of such Debt. For the avoidance of doubt, the amount of Debt of any Person at any date will be calculated
without duplication of any Guarantee in respect thereof.

 

“Default”
means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

 

“Default
Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81,
47.2 or 382.1, as applicable.

 

“Defaulting
Lender” means any Lender that (a) has failed, within three (3) Business Days of the date required to be funded or paid,
to (i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or Swingline Loans or (iii)
pay over to any Credit Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such
Lender notifies the Administrative Agent in writing that such failure is the result of such Lender’s good faith determination
that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied,
(b) has notified the Company or any Credit Party in writing, or has made a public statement to the effect, that it does not intend
or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates
that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified
and including the particular default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other
agreements in which it commits to extend credit, (c) has failed, within three (3) Business Days after request by the Company or
the Administrative Agent, acting in good faith, to provide a certification in writing from an authorized officer of such Lender
that it will comply with its obligations (and is financially able to meet such obligations) to fund prospective Loans and participations
in then outstanding Letters of Credit and Swingline Loans under this Agreement, provided that such Lender shall cease to be a Defaulting
Lender pursuant to this clause (c) upon such Credit Party’s receipt of such certification in form and substance satisfactory
to it and the Administrative Agent, or (d) has become the subject of (A) a Bankruptcy Event and/or (B) a Bail-In Action.

 

“Designated
Borrower” means, unless otherwise specified by the Administrative Agent to the Company and the Lenders, any Affiliate
Borrower that is organized under the laws of Luxembourg or any other jurisdiction designated from time to time by the Administrative
Agent due to operational limitations relating to the ability to fund ABR Loans to such Affiliate Borrower.

 

“Designated
Loan” means a Designated Revolving Loan or a Designated Swingline Loan, as applicable.

 

“Designated
Revolving Loan” means a Revolving Loan denominated in Dollars to a Designated Borrower.

 

    	 	15	 

     

    

 

“Designated
Swingline Loan” means a Swingline Loan denominated in Dollars to a Designated Borrower.

 

“Designated
Persons” means any Person listed on a Sanctions List.

 

“Disqualified
Institutions” means Persons that are reasonably determined by the Company to be competitors of the Company or its Subsidiaries
and which have been specifically identified by the Company to the Administrative Agent and the Lenders in writing prior to the
Effective Date; provided that, the Company, by notice to the Administrative Agent and the Lenders after the Effective Date,
shall be permitted to supplement from time to time in writing by name the list of Persons that are Disqualified Institutions to
the extent that the Persons added by such supplements are competitors (or Affiliate thereof, to the extent such Affiliate (x) is
clearly identifiable as an affiliate of such competitor solely by similarity of such Affiliate’s name and (y) is not a bona
fide debt investment fund that is an Affiliate of such competitor) of the Company or its Subsidiaries, and each such supplement
shall become effective three (3) Business Days after delivery thereof to the Administrative Agent and the Lenders (including through
an Approved Electronic Platform) in accordance with Section 9.01, but which shall not apply retroactively to disqualify any Persons
that have previously acquired an assignment or participation interest in the Loans (but solely with respect to such Loans). It
is understood and agreed that (i) the Administrative Agent shall have no responsibility or liability to determine or monitor whether
any Lender or potential Lender is a Disqualified Institution, (ii) the Company’s failure to deliver such list (or supplement
thereto) in accordance with Section 9.01 shall render such list (or supplement) not received and not effective and (iii) “Disqualified
Institution” shall exclude any Person that the Company has designated as no longer being a “Disqualified Institution”
by written notice delivered to the Administrative Agent from time to time in accordance with Section 9.01.

 

“Disregarded
Entity” means an entity that, pursuant to Treas. Reg. § 301.7701-2(c)(2), is disregarded for U.S. federal income
Tax purposes as an entity separate from its owner.

 

“Documentation
Agent” means (i) each of Wells Fargo Bank, National
Association, HSBC Bank USA, National Association, Banco Bilbao Vizcaya Argentaria, S.A. New York Branch, Bank of Montreal, London
Branch and Intesa Sanpaolo S.p.A. in its capacity as documentation agent for the credit facility
evidenced by this AgreementRevolving Credit Facility
and (ii) Bank of America, N.A. and Wells Fargo Bank, National Association in its capacity as documentation agent for the Term
Loan Facility.

 

“Dollar
Amount” of any currency means, at the time of determination thereof, (a) if such amount is expressed in Dollars, such
amount, (b) if such amount is expressed in a Foreign Currency, the equivalent of such amount in Dollars determined by using the
rate of exchange for the purchase of the Dollars with such Foreign Currency in the London foreign exchange market at or about 11:00
a.m. London time (or New York time, as applicable) on a particular day as displayed by ICE Data Services as the “ask price”,
or as displayed on such other information service which publishes that rate of exchange from time to time in place of ICE Data
Services (or if such service ceases to be available, the equivalent of such amount in Dollars as determined by the Administrative
Agent, in consultation with the Company, using any reasonable method of determination it deems reasonably appropriate) and (c)
if such amount is denominated in any other currency, the equivalent of such amount in Dollars as determined by the Administrative
Agent, in consultation with the Company, using any reasonable method of determination it deems reasonably appropriate.

 

“Dollars”
or “$” refers to lawful money of the United States.

 

“Domestic
Subsidiary” means each Subsidiary of the Parent other than a Foreign Subsidiary.

 

“DQ List”
has the meaning specified in Section 9.04(e)(iv) hereof.

 

    	 	16	 

     

    

 

“EBITDA”
means, for any period, the sum of the consolidated net income of the Parent for such period excluding the effect of (a) any non-cash
gains (including any non-cash gains arising from the adoption of mark-to-market accounting with respect to pension or other retirement
benefit plans); (b) any non-cash losses, charges and expenses (including any non-cash loss, charge or expense arising from the
adoption of mark-to-market accounting with respect to pension or other retirement benefit plans); (c) any earnings from discontinued
operations (but if such operations are classified as discontinued due to the fact that they are subject to an agreement to dispose
of such operations, such earnings shall be excluded in the calculation of EBITDA (i) only when and to the extent such operations
are actually disposed of and (ii) if the sales revenue generated by the applicable entity or business unit in the twelve (12) months
prior to such disposition was $25,000,000 or more); (d) fees, costs, expenses, premiums, make-whole or penalty payments and other
similar items incurred after the Effective Date arising out of (i) Permitted Acquisitions, (ii) investments and dispositions not
prohibited by this Agreement and (iii) any incurrence, issuance, repayment or refinancing of Debt permitted by this Agreement;
(e) any losses, charges, costs and expenses from discontinued operations plus, to the extent deducted in determining such consolidated
net income, but without duplication, Interest Expense, taxes on or measured by income, depreciation, amortization, non-cash stock-based
compensation expenses; (f) any losses, charges, costs and expenses from restructurings and casualty events (not to exceed 10% of
EBITDA for such period); (g) any unusual or non-recurring losses, charges, costs and expenses to the extent deducted in the calculation
of consolidated net income (together with the amount added back pursuant to clause (h) below, not to exceed 10% of EBITDA);
and (h) any cost-savings and cost synergies resulting from a Permitted Acquisition projected in good faith by the Parent to be
realized within 18 months of such acquisition (together with the amounts in clause (g) above, not to exceed 10% of EBITDA).

 

“ECP”
means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act or any regulations
promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC.

 

“EEA Financial
Institution” means (a) any institution established in any EEA Member Country which is subject to the supervision of an
EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in
clause (a) of this definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution
described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member
Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution
Authority” means any public administrative authority or any Person entrusted with public administrative authority of
any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Effective
Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance
with Section 9.02).

 

“Electronic
Signature” means an electronic sound, symbol, or process attached to, or associated with, a contract or other record
and adopted by a Person with the intent to sign, authenticate or accept such contract or record.

 

“Eligible
Subsidiary” means any (i) Subsidiary incorporated or organized under the laws of an Approved Jurisdiction and (ii) Subsidiary
that is approved from time to time by the Administrative Agent and each of the Revolving
Lenders.

 

    	 	17	 

     

    

 

be zero for the purposes of this Agreement)
plus (ii) the Applicable Rate for Eurocurrency Borrowings.

 

“Event
of Default” has the meaning assigned to such term in Article VII; provided that any requirement for the
giving of notice, the lapse of time, or both, or any other condition has been satisfied.

 

“Excluded
Swap Obligation” means, with respect to any Loan Party, any Specified Swap Obligation if, and to the extent that, all
or a portion of the Guarantee of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such Specified
Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order
of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) (a) by virtue of such
Loan Party’s failure for any reason to constitute an ECP at the time the Guarantee of such Loan Party or the grant of such
security interest becomes or would become effective with respect to such Specified Swap Obligation or (b) in the case of a Specified
Swap Obligation subject to a clearing requirement pursuant to Section 2(h) of the Commodity Exchange Act (or any successor provision
thereto), because such Loan Party is a “financial entity,” as defined in Section 2(h)(7)(C)(i) of the Commodity Exchange
Act (or any successor provision thereto), at the time the Guarantee of such Loan Party or the grant of such security interest becomes
or would become effective with respect to such related Specified Swap Obligation. If a Specified Swap Obligation arises under a
master agreement governing more than one swap, such exclusion shall apply only to the portion of such Specified Swap Obligation
that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.

 

“Excluded
Taxes” means, with respect to the Administrative Agent, any Lender, any Issuing Bank or any other recipient of any payment
to be made by or on account of any obligation of any Borrower or any guarantor under any Loan Document, (a) Taxes imposed on or
measured by net income (however denominated), franchise Taxes and branch profits Taxes, in each case, (i) imposed by the jurisdiction
under the laws of which such recipient is organized or in which it has a principal office or, in the case of any Lender, in which
its applicable lending office is located or (ii) that are Other Connection Taxes, (b) in the case of a Lender, any U.S. federal
withholding Tax that is imposed on amounts payable to or for the account of such Lender with respect to an applicable interest
in a Loan, Letter of Credit or Commitment pursuant to a law in effect on the date on which (i) such Lender becomes a party to
this Agreement (other than pursuant to an assignment request by the Company or any other Borrower under Section 2.19(b))
or (ii) designates a new lending office, except in each case to the extent that such Lender (or its assignor, if any) was entitled,
immediately before the designation of a new lending office (or an assignment), to receive additional amounts pursuant to Section
2.17(a), (c) Taxes attributable to such recipient’s failure to comply with Section 2.17(e), (d) any withholding
tax that is imposed under FATCA and (e) any Luxembourg registration duties (droits d'enregistrement) payable in the case
of a voluntary registration of any Loan Documents by the Lenders with the Administration de l'Enregistrement et,
des Domaines et de la TVA in Luxembourg,
when such registration is not required to enforce their rights under the Loan Documents.

 

“Existing
Credit Agreement” means that certain Amended and Restated Credit Agreement dated as of October 3, 2014, by and among
the Company, the Parent, the other subsidiaries of the Parent party thereto, the financial institutions party thereto as lenders
and Bank of America, N.A. as administrative agent (including any amendment, restatement or replacement thereof prior to the Effective
Date).

 

“Extended
Maturity Date” has the meaning assigned to such term in Section 2.25(a).

 

“Extending
Lender” has the meaning assigned to such term in Section 2.25(b).

 

    	 	19	 

     

    

 

“Insolvency
Regulation” shall mean the Regulation EU 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency
proceedings (recast).

 

“Interest
Coverage Ratio” means, for any period, the ratio of (i) EBITDA for such period to (ii) Interest Expense for such period.

 

“Interest
Expense” means, for any period, the sum, without duplication, of consolidated interest expense of the Parent and its
Subsidiaries for such period (including, in each case to the extent included in interest expense on the Parent’s consolidated
income statement, the interest component of capital leases, the interest component of Synthetic Lease Obligations, facility, commitment
and usage fees, and fees for standby letters of credit), plus consolidated yield or discount accrued, during such period
on the aggregate outstanding investment or claim held by purchasers, assignees or other transferees of (or of interests in) receivables
of the Parent and its Subsidiaries in connection with any Securitization Transaction (regardless of the accounting treatment of
such Securitization Transaction), plus net payments (if any) pursuant to Hedging Agreements, minus the sum (without duplication)
of (a) annual administrative agent fees, (b) costs associated with obtaining swap agreements and any interest expense attributable
to the movement of the mark-to-market valuation of obligations under swap agreements or other derivative instruments and any one-time
costs associated with breakage in respect of swap agreements for interest rates, (c) costs associated with the issuance or incurrence
of debt, including amortization and write-off of deferred and other financing fees, debt issuance costs, commissions, fees and
expenses and original issue discount, (d) PIK interest, (e) any non-cash expense in respect of any interest component relating
to accretion or accrual of discounted liabilities and (f) net receipts (if any) pursuant to Hedging Agreements.

 

“Interest
Election Request” means a request by the applicable Borrower to convert or continue a Revolving
Borrowing in accordance with Section 2.08 in substantially the form attached hereto as Exhibit G-2
or such other form as the Administrative Agent may approve from time to time.

 

“Interest
Payment Date” means (a) with respect to any ABR Loan (other than a Swingline Loan), the last day of each March, June,
September and December and the applicable Maturity Date,
(b) with respect to any Eurocurrency Loan (including a Eurocurrency Swingline Loan), the last day of the Interest Period applicable
to the Borrowing of which such Loan is a part and, in the case of a Eurocurrency Borrowing with an Interest Period of more than
three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’
duration after the first day of such Interest Period and the applicable
Maturity Date, and (c) with respect to any Swingline Loan (other than a Eurocurrency Swingline Loan), the day that
such Loan is required to be repaid and the applicable Maturity
Date.

 

“Interest
Period” means (a) with respect to any Eurocurrency Borrowing (other than a Eurocurrency Swingline Loan), the period
commencing on the date of such Borrowing and ending on the day that is one week thereafter or the numerically corresponding day
in the calendar month that is one, two, three or six months thereafter (or such other period of time as is acceptable to each
of the applicable Lenders), as the applicable Borrower (or
the Company on behalf of the applicable Borrower) may elect and (b) with respect to any Eurocurrency Swingline Loan, the period
commencing on the date of such Loan and ending on the date one week thereafter; provided, that (i) if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless,
in the case of a Eurocurrency Borrowing (other than a Eurocurrency Swingline Loan) only, such next succeeding Business Day would
fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any
Interest Period pertaining to a Eurocurrency Borrowing (other than a Eurocurrency Swingline Loan) that commences on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest
Period), other than a one-week Interest Period, shall end on the last Business Day of the last calendar month of such Interest
Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such

 

    	 	22	 

     

    

 

(iv)     a
U.S. limited liability company (“LLC”), provided the ultimate recipients of the interest would be Irish Qualifying
Lenders within paragraph (i), (ii) or (iii) of this definition and the business conducted through the LLC is so structured for
market reasons and not for tax avoidance purposes;

 

provided that, in the case
of (i), (ii), (iii), and (iv), the company does not provide its commitment in connection with a trade or business which is carried
on in Ireland through a branch or agency; or

 

(c)          a
body corporate which:

 

(i)       advances
money in the ordinary course of a trade which includes the lending of money and whose Facility Office is located in Ireland; and

 

(ii)      in
whose hands any interest payable in respect of money so advanced is taken into account in computing the trading income of that
company; and

 

(iii)     which
has complied with the notification requirements set out in Section 246(5)(a) of the Irish TCA.

 

(d)          a
qualifying company within the meaning of Section 110 of the Irish TCA; or

 

(e)          an
investment undertaking within the meaning of Section 739B of the Irish TCA; or

 

(f)           an
Irish Treaty Lender; or

 

(g)          an
exempted approved scheme within the meaning of Section 774 of the Irish TCA.

 

“Irish
TCA” means the Taxes Consolidation Act, 1997 of Ireland.

 

“Irish
Treaty Lender” means a Lender which is on the date the relevant payment is made entitled under a double taxation agreement
(an “Irish Treaty”) in force on that date between Ireland and another jurisdiction to that payment without any
withholding for or on account of Irish Tax (subject to the completion of any procedural formalities) and which does not carry on
a business in Ireland through a permanent establishment with which that Lender’s participation in the Loan is effectively
connected.

 

“Issuing
Bank” means each of JPMCB, Bank of America, N.A., MUFG Bank, Ltd., Citibank, N.A., U.S. Bank National Association and
each other Revolving Lender designated by the Company as
an “Issuing Bank” hereunder that has agreed to such designation (and is reasonably acceptable to the Administrative
Agent), each in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided in
Section 2.06(i). Each Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates
or branches of such Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate or branch,
as applicable, with respect to Letters of Credit issued by such Affiliate.

 

“JPMCB”
means JPMorgan Chase Bank, N.A.

 

“Knowledge”
means the actual knowledge of a Responsible Officer, without giving effect to imputed or constructive knowledge or giving rise
to any duty to investigate.

 

“LC Disbursement”
means a payment made by an Issuing Bank pursuant to a Letter of Credit.

 

“LC Exposure”
means, at any time, the sum of (a) the aggregate undrawn Dollar Amount of all outstanding Letters of Credit at such time which
are then available plus (b) the aggregate Dollar Amount of all LC Disbursements that have
not yet been reimbursed by or on behalf of the Company at such time. The LC Exposure of any Revolving
Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

 

    	 	24	 

     

    

 

“Lender Notice Date” has the meaning
assigned to such term in Section 2.25(b).

 

“Lender Parent” means,
with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary.

 

“Lenders” means the Persons
listed on Schedule 2.01 and any other Person that shall have become a Lender hereunder pursuant to Section 2.20 or
pursuant to an Assignment and Assumption or otherwise, other than any such Person that ceases to be a party hereto pursuant to
an Assignment and Assumption or otherwise. Unless the context otherwise requires, the term “Lenders” includes the Swingline
Lenders and the Issuing Banks.

 

“Letter of Credit” means
any standby or commercial letter of credit issued pursuant to this Agreement.

 

“LIBO Rate” means, with
respect to any Eurocurrency Borrowing denominated in any Agreed Currency and for any applicable Interest Period, the London interbank
offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate)
for such Agreed Currency for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters
screen that displays such rate or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute
page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate
as shall be selected by the Administrative Agent from time to time in its reasonable discretion (in each case the “LIBOR
Screen Rate”) at approximately 11:00 a.m., London time, on the Quotation Day for such Agreed Currency and Interest Period;
provided that, if the LIBOR Screen Rate as so determined would be less than zero, such rate shall be deemed to be zero for
the purposes of this Agreement; provided, further, that if a LIBOR Screen Rate shall not be available at such time
for such Interest Period (the “Impacted Interest Period”), then the LIBO Rate for such Agreed Currency and such
Interest Period shall be the Interpolated Rate; provided, that, if any Interpolated Rate as so determined would be less
than zero, such rate shall be deemed to be zero for the purposes of this Agreement. It is understood and agreed that all of the
terms and conditions of this definition of “LIBO Rate” shall be subject to Section 2.14.

 

“LIBOR Screen Rate” has
the meaning assigned to such term in the definition of “LIBO Rate”.

 

“Lien” means any interest
in property securing any obligation owed to, or a claim by, a Person other than the owner of the property, whether such interest
is based on the common law, statute, regulation, decree or contract, including (a) any lien or security interest arising from any
mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or consignment or bailment for security purposes
and (b) the interest of a person under a capital lease (but excluding the interest of a lessor under an operating lease).

 

“Liquidity” means, at
any time, the amount of unrestricted an unencumbered cash and cash equivalent investments of the Parent and its Subsidiaries at
such time that is not subject to any Lien other than Liens permitted under Section 6.03 that is in excess of $5,000,000
but in no event to exceed $250,000,000.

 

    	 	25	 

     

    

 

“Loan Documents”
means this Agreement, each Affiliate Borrowing Agreement, each Affiliate Borrowing Termination, any promissory notes executed
and delivered pursuant to Section 2.10(d), each Borrowing Request and any and all other instruments and documents executed
and delivered in connection with any of the foregoing.

 

“Loan Party” means the
Parent, the Company, the Swiss Guarantor and each Affiliate Borrower.

 

“Loans” means the loans
made by the Lenders to the Borrowers pursuant to this Agreement, it being understood that conversions and continuations of Loans
are not Loans hereunder.

 

“Local Time” means (i)
Chicago time in the case of a Loan, Borrowing or LC Disbursement denominated in Dollars (other than Designated Loans) and (ii)
local time in the case of a Loan, Borrowing or LC Disbursement denominated in a Foreign Currency and Designated Loans (it being
understood that such local time shall mean London, England time unless otherwise notified by the Administrative Agent).

 

“Luxembourg” means the Grand Duchy
of Luxembourg.

 

“Luxembourg
Debtor Relief Laws” means (i) bankruptcy (faillite) within the meaning of Articles 437 et seq. of the
Luxembourg Commercial Code, (ii) controlled management (gestion contrôlée) within the meaning of the Luxembourg
grand-ducal regulation of Maydated
24, May
1935 on controlled management, (iii) voluntary arrangement with creditors (concordat préventif de la faillite)
within the meaning of the Luxembourg law ofdated
14 April 14, 1886 on arrangements to prevent insolvency amended, (iv)
suspension of payments (sursis de paiement) within the meaning of Articles 593 et seq. of the Luxembourg Commercial
Code, and (v) voluntary or compulsory liquidation pursuant to the Luxembourg law ofdated
10 August 10, 1915 on commercial companies,
as amended.

 

“Luxembourg
Person” means an entity that (i) is organized under the laws of the Grand-Duchy of
Luxembourg, (ii) has its center of main interests, within the meaning of the Insolvency Regulation, in Luxembourg
or (iii) has an establishment, within the meaning of the Insolvency Regulation, in Luxembourg.

 

“Luxembourg Relief” means
bankruptcy (faillite), controlled management (gestion contrôlée), voluntary arrangement with creditors
(concordat préventif de faillite), suspension of payments (sursis de paiement) and voluntary or compulsory
liquidation, as such terms are understood within the Luxembourg Debtor Relief Laws, and also means any other proceedings affecting
the rights of creditors generally or the appointment of an interim administrator (administrateur provisoire).

 

“Material Adverse Effect”
means a material adverse effect on (i) the business, assets, operations or financial condition of the Parent and its Subsidiaries
taken as a whole or (ii) the ability of any Loan Party to perform its obligations hereunder.

 

“Material Financial Obligations”
means Debt or Synthetic Lease Obligations of the Parent or any Subsidiary (excluding amounts owed to the Parent or any Subsidiary
that is wholly-owned (except for directors’ qualifying shares)) in an aggregate amount (for all applicable Debt and Synthetic
Lease Obligations, but without duplication) equal to or greater than a Dollar Amount of $75,000,000.

 

“Material Subsidiary”
means (a) each Borrower and (b) each other Subsidiary of the Parent that at the time of determination constitutes a “significant
subsidiary” (as such term is defined in Regulation S-X of the SEC as in effect on the date of this Agreement).

 

    	 	26	 

     

    

 

“Maturity
Date” means the five year anniversary of the EffectiveRevolving
Credit Maturity Date or the Term Loan Maturity Date, as extended (in the
case of each Lender consenting thereto) pursuant to Section 2.25may
be.

 

“Moody’s” means Moody’s
Investors Service, Inc.

 

“Net Leverage Ratio”
means, as of the last day of any period of four consecutive fiscal quarters, the ratio of (a) (i) the sum (without duplication)
of the outstanding principal amount of all Debt (excluding, without duplication, Synthetic Lease Obligations) of the Parent and
its Consolidated Subsidiaries determined on a consolidated basis as of such date, minus (ii) Liquidity as of such date,
to (b) EBITDA for the period of four consecutive fiscal quarters then ended; provided that for purposes of calculating EBITDA
pursuant to this clause (b), the consolidated net income of any Person or business unit acquired (or divested or liquidated,
if the sales revenue generated by such Person or business unit in the 12 months prior to such divestiture or liquidation was $25,000,000
or more) by the Parent or any Subsidiary during such period (plus, to the extent deducted in determining such consolidated
net income, Interest Expense, income tax expense, depreciation and amortization and non-cash compensation expenses of such Person
or business unit) shall be included (or, in the case of a divestiture or liquidation, excluded) on a pro forma basis for
such period (assuming the consummation of each such acquisition and the incurrence or assumption of any Debt in connection therewith
(or the consummation of such divestiture or liquidation) occurred on the first day of such period) in accordance with Article 11
of Regulation S-X of the SEC.

 

“New Money Credit Event”
means with respect to any Issuing Bank, any increase (directly or indirectly) in such Issuing Bank’s exposure (whether by
way of additional credit or banking facilities or otherwise, including as part of a restructuring) to any Borrower occurring by
reason of (i) any law, action or requirement of any Governmental Authority in such Borrower’s or such Letter of Credit beneficiary’s
country, or (ii) any agreement in relation to clause (i), in each case to the extent calculated by reference to the aggregate Revolving
Credit Exposures outstanding prior to such increase.

 

“Non-Extending Lender” has the
meaning assigned to such term in Section 2.25(b).

 

“Note”
means a note substantially in the form of Exhibit DD-1
or D-2 hereto, as applicable, evidencing the
Loans of the applicable Class made by any applicable
Lender to each applicable Borrower.

 

“NYFRB” means the Federal Reserve
Bank of New York.

 

“NYFRB Rate” means, for
any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect
on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if both
such rates are not so published for any day that is a Business Day, the term “NYFRB Rate” means the rate quoted for
such day for a federal funds transaction at 11:00 a.m., New York City time, on such day received by the Administrative Agent from
a Federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates
as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Obligations” means all
indebtedness (including interest and fees accruing during the pendency of any bankruptcy, insolvency, examinership, receivership
or other similar proceeding, regardless of whether allowed or allowable in such proceeding), obligations and liabilities of any
of the Parent and its Subsidiaries to any of the Lenders, any of the Issuing Banks, any indemnified party and the Administrative
Agent, individually or collectively, under this Agreement or any of the other Loan Documents or in respect of any of the Loans
made or reimbursement obligations incurred or any of the Letters of Credit or other instruments at any time evidencing any thereof.

 

    	 	27	 

     

    

 

“PBGC” means the Pension Benefit
Guaranty Corporation and any successor thereto.

 

“Permitted Acquisition”
means any Acquisition by the Parent or a Subsidiary which satisfies each of the following requirements: (i) no Event of Default
or Default has occurred and is continuing at the time of, or will result upon giving effect to, such Acquisition; and (ii) in the
case of the Acquisition of any Person, the board of directors (or equivalent governing body) of the Person being acquired (or all
of the equity holders thereof) shall have approved such Acquisition.

 

“Person” means an individual,
partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint
venture or Governmental Authority.

 

“Plan” means at any time
an employee pension benefit plan which is covered by Title IV of ERISA or subject to the minimum funding standards under Section
412 of the Code and is either (i) maintained by the Parent or any ERISA Affiliate for employees of the Parent or such ERISA Affiliate
or (ii) maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes
contributions and to which the Parent or any ERISA Affiliate is then making or accruing an obligation to make contributions or
has within the preceding five plan years made contributions.

 

“Plan Asset Regulations”
means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended from time to time.

 

“Pounds Sterling” means the lawful
currency of the United Kingdom.

 

“Prime Rate” means the
rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal
ceases to quote such rate, the highest per annum interest rate published by the Board in Federal Reserve Statistical Release H.15
(519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar
rate quoted therein (as determined in good faith by the Administrative Agent) or any similar release by the Board (as determined
in good faith by the Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such change
is publicly announced or quoted as being effective.

 

“PTE” means a prohibited
transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

 

“QFC”
has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with,
12 U.S.C. 5390(c)(8)(D).

 

“QFC
Credit Support” has the meaning assigned to it in Section 9.18.

 

“Public Debt Rating”
means the rating that has been most recently announced by S&P, Moody’s or Fitch, as the case may be, for any class of
non-credit enhanced long-term senior unsecured debt issued by the Company (or if no such rating is then in effect with respect
to such debt, then the corporate, issuer or similar rating with respect to the Parent, that has been most recently announced by
S&P, Moody’s or Fitch, as the case may be), or, if any such rating agency shall have issued more than one such rating,
the lowest such rating issued by such rating agency.

 

“Public Filings” means
any 10-K, 10-Q or 8-K, S-1 or S-4 filed by the Parent, in each case with the SEC after December 31, 2017 and on or before the Effective
Date.

 

“Quotation
Day” means, with respect to any Eurocurrency Borrowing for any Interest Period, (i) if the currency is Pounds
Sterling, the first day of such Interest Period, (ii) if the currency is euro, the day that is two (2) TARGET2 Days before
the first day of such Interest Period, and (iii) for any other currency, two (2) Business Days prior to the commencement of
such Interest Period (unless, in each case, market practice differs in the relevant market where the LIBO Rate for such
currency is to be determined, in which case the Quotation Day will be determined by the Administrative Agent in accordance
with market practice in such market (and if quotations would normally be given on more than one day, then the Quotation Day
will be the last of those days)).

 

    	 	29	 

     

    

 

“Reference Bank Rate”
means the arithmetic mean of the rates (rounded upwards to five decimal places) supplied to the Administrative Agent at its request
by the Reference Banks (as the case may be) as of the applicable time on the Quotation Day for Loans in the applicable currency
and the applicable Interest Period as the rate at which the relevant Reference Bank could borrow funds in the London (or other
applicable) interbank market in the relevant currency and for the relevant period, were it to do so by asking for and then accepting
interbank offers in reasonable market size in that currency and for that period.

 

“Reference Banks” means
such banks as may be appointed by the Administrative Agent in consultation with the Company, in a manner consistent with that applied
by the Administrative Agent generally to substantially similar credit facilities for which it acts as administrative agent. No
Lender shall be obligated to be a Reference Bank without its consent.

 

“Register” has the meaning set
forth in Section 9.04(b).

 

“Related Indemnified Person” has
the meaning assigned to it in Section 9.03(b).

 

“Related Parties” means,
with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees,
administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates.

 

“Relevant Territory” means:

 

(a)       a member
state of the European Communities (other than Ireland); or

 

(b)       to
the extent not a member state of the European Communities, a jurisdiction with which Ireland has entered into a double taxation
treaty that either has the force of law by virtue of Section 826(1) of the Irish TCA or which will have the force of law on completion
of the procedures set out in Section 826(1) of the Irish TCA.

 

“Replacement Lender” has the meaning
assigned to such term in Section 2.09(b).

 

“Required
Lenders” means, subject to Section 2.24, at any time, Lenders having Revolving
Credit Exposures and unused Commitments representing more than 50% of the sum of the total Revolving
Credit Exposures and unused Commitments at such time; provided that for purposes of declaring the Loans
to be due and payable pursuant to Article VII, and for all purposes after the Loans become due and payable pursuant to
Article VII or the Revolving Commitments expire or
terminate, then, as to each Lender, clause (a) of the definition of Swingline Exposure shall only be applicable for purposes of
determining its Revolving Credit Exposure to the extent such Lender shall have
funded its participation in the outstanding Swingline Loans; provided further that for the purpose of determining the Required
Lenders needed for any waiver, amendment, modification or consent, any Lender that is a Borrower or any Affiliate of the Parent
shall be disregarded.

 

“Required
Revolving Lenders” means, subject to Section 2.24, at any time, Revolving Lenders having Revolving Credit Exposures and
unused Revolving Commitments representing more than 50% of the sum of the total Revolving Credit Exposures and unused Revolving
Commitments at such time; provided that for all purposes after the Loans become due and payable pursuant to Article VII or the
Revolving Commitments expire or terminate, then, as to each Revolving Lender, clause (a) of the definition of Swingline Exposure
shall only be applicable for purposes of determining its Revolving Credit Exposure to the extent such Lender shall have funded
its participation in the outstanding Swingline Loans.

 

    	 	30	 

     

    

 

“Required
Term Lenders” means, subject to Section 2.24, at any time, Term Lenders having Term Loans and unused Term Loan Commitments
representing more than 50% of the sum of the total outstanding principal amount of Term Loans and unused Term Loan Commitments
at such time.

 

“Responsible Officer”
means (i) with respect to the Company, a Manager of the Company; (ii) with respect to the Parent, the Chief Executive Officer,
the Chief Financial Officer, the Chief Accounting Officer or the Treasurer of the Parent; and (iii) with respect to any other Loan
Party, a manager, a director, the chief executive officer, the chief operating officer, the president, any vice president (if appointed
by the board of directors or similar governing body of such Loan Party), the chief financial officer, the treasurer or any assistant
treasurer of such Loan Party, or any other officer having substantially the same authority and responsibility.

 

“Retired Commitments” has the meaning
assigned to such term in Section 2.09(b).

 

“Revolving
Commitment” means, with respect to each Lender, the commitment of such Lender, if any, to make Revolving Loans and to acquire
participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount
of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) reduced or terminated from time to time
pursuant to Section 2.09, (b) increased from time to time pursuant to Section 2.20 and (c) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 9.04. The amount of each Lender’s Revolving Commitment
is set forth on Schedule 2.01, or in the Assignment and Assumption or other documentation or record (as such term is defined in
Section 9-102(a)(70) of the New York Uniform Commercial Code) as provided in Section 9.04(b)(ii)(C) or other documentation contemplated
hereby pursuant to which such Lender shall have assumed its Revolving Commitment pursuant to the terms hereof, as applicable.
As of the Amendment No. 1 Effective Date, the aggregate amount of the Revolving Lenders’ Revolving Commitments is $900,000,000.

 

“Revolving Credit Exposure”
means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans
and its LC Exposure and Swingline Exposure at such time.

 

“Revolving
Credit Facility” means the revolving credit facility under this Agreement.

 

“Revolving
Credit Maturity Date” means the five year anniversary of the Effective Date, as extended (in the case of each Revolving
Lender consenting thereto) pursuant to Section 2.25; provided, however, in each case, if such date is not a Business Day, the
Revolving Credit Maturity Date shall be the next preceding Business Day.

 

“Revolving
Lender” means, as of any date of determination, each Lender that has a Revolving Commitment or, if the Revolving Commitments
have terminated or expired, a Lender with Revolving Credit Exposure.

 

“Revolving Loan”
means a Loan made by a Revolving Lender pursuant to Section
2.01(a).

 

“S&P” means Standard &
Poor’s Financial Services LLC, a subsidiary of S&P Global Inc.

 

“Sanctioned Country”
means a country, region or territory which is at any relevant time subject to Sanctions (at the time of this Agreement, Crimea,
Cuba, Iran, North Korea, Sudan and Syria).

 

    	 	31	 

     

    

 

monetary authority, the Board, the Financial Conduct Authority,
the Prudential Regulation Authority, the European Central Bank or other Governmental Authority for any category of deposits or
liabilities customarily used to fund loans in the applicable currency, expressed in the case of each such requirement as a decimal.
Such reserve, liquid asset, fees or similar requirements shall include those imposed pursuant to Regulation D of the Board. Eurocurrency
Loans shall be deemed to be subject to such reserve, liquid asset, fee or similar requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any Lender under any applicable law, rule or regulation,
including Regulation D of the Board. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date
of any change in any reserve, liquid asset or similar requirement, and the Administrative Agent shall notify the Company promptly
of any such adjustment.

 

“Subsidiary” of a Person
means a company, corporation, partnership, joint venture, limited liability company or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body
(other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially
owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both,
by such Person. Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries”
shall refer to a Subsidiary or Subsidiaries of the Parent.

 

“Supported
QFC” has the meaning assigned to it in Section 9.18.

 

“Surviving Commitment” has the
meaning assigned to such term in Section 2.09(b).

 

“Surviving Lender” has the meaning
assigned to such term in Section 2.09(b).

 

“Swap
Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar
agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities,
or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction
or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account
of services provided by current or former directors, officers, employees or consultants of the Parent or the Subsidiaries shall
be a Swap Agreement.

 

“Swingline
Exposure” means, at any time, the aggregate principal Dollar Amount of all Swingline Loans outstanding at such time.
The Swingline Exposure of any Lender at any time shall be the sum of (a) its Applicable Percentage of the total Swingline Exposure
at such time other than with respect to any Swingline Loans made by such Lender in its capacity as a Swingline Lender and (b)
the aggregate principal Dollar Amount of all Swingline Loans made by such Lender as a Swingline Lender outstanding at such time
(less the Dollar Amount of participations funded by the other Revolving
Lenders in such Swingline Loans).

 

“Swingline Foreign Currency Sublimit”
means $45,000,000.

 

“Swingline
Lenders” means each of JPMCB, Bank of America, N.A., MUFG Bank, Ltd., Citibank, N.A., U.S. Bank National Association
and each other Revolving Lender designated by the Company
as a “Swingline Lender” hereunder that has agreed to such designation (and is reasonably acceptable to the Administrative
Agent), each in its capacity as a lender of Swingline Loans hereunder.

 

“Swingline Loan” means a Loan made
pursuant to Section 2.05.

 

    	 	33	 

     

    

 

“Swingline Sublimit”
means as to any Lender (i) the amount set forth opposite such Lender’s name on Schedule 2.05 hereof or (ii) if such
Lender has entered into an Assignment and Assumption, the amount set forth for such Lender as its Swingline Sublimit in the Register
maintained by the Administrative Agent pursuant to Section 9.04(b)(iv) (provided that, in the case of each of the foregoing
clauses (i) and (ii), any increase in the Swingline Sublimit with respect to any Lender shall only require the consent of the Company
and such Lender).

 

“Swiss Borrower” means
any Affiliate Borrower organized under the laws of Switzerland or, if different, is deemed resident in Switzerland for Swiss Withholding
Tax purposes pursuant to Article 9 of the Swiss Withholding Tax Act.

 

“Swiss Guarantor” means
Pentair Investments Switzerland GmbH, a Swiss limited liability company (Gesellschaft mit beschränkter Haftung), with company
number CHE-188.406.956 and its registered address at Freier Platz 10, 8200 Schaffhausen, Switzerland.

 

“Swiss Guidelines”
means, together, the guidelines S-02.122.1 in relation to bonds of April 1999 as issued by the Swiss Federal Tax Administration
(Merkblatt S-02.122.1 vom April 1999 betreffend “Obligationen”), S-02.123 in relation to inter bank transactions
of 22 September 1986 as issued by the Swiss Federal Tax Administration (Merkblatt S-02.123 vom 22 September 1986 betreffend
Zinsen von Bankguthaben, deren Gläubiger Banken sind (Interbankguthaben)), S-02.128 in relation to syndicated credit
facilities of January 2000 (Merkblatt S-02.128 vom Januar 2000 “Steuerliche Behandlung von Konsortialdarlehen, Schuldscheindarlehen,
Wechseln und Unterbeteiligungen”), S-02.130.1 in relation to money market instruments and book claims of April 1999
(Merkblatt S-02.130.1 vom April 1999 “Geldmarktpapiere und Buchforderungen inländischer Schuldner”), the
circular letter No. 15 (1-015-DVS-2007) of 7 February 2007 in relation to bonds and derivative financial instruments as
subject matter of taxation of Swiss federal income tax, Swiss withholding tax and Swiss stamp taxes (Kreisschreiben Nr. 15
“Obligationen und derivative Finanzinstrumente als Gegenstand der direkten Bundessteuer, der Verrechnungssteuer und der
Stempelabgaben” vom 3. Oktober 2017) and,
the circular letter No. 34 of 26 July 2011 (1-034-V-2011) in relation to customer credit balances (Kreisschreiben
Nr. 34 “Kundenguthaben” vom 26. Juli 2011) and practice
note 010-DVS-2019 dated 5 February 2019 published by the Swiss Federal Tax Administration regarding Swiss Withholding Tax in the
Group (Mitteilung-010-DVS-2019-d vom 5. Februar 2019 - Verrechnungssteuer: Guthaben im Konzern as issued, and
as amended or replaced from time to time by the Swiss Federal Tax Administration, or as applied in accordance with a tax ruling
(if any) issued by the Swiss Federal Tax Administration, or as substituted or superseded and overruled by any law, statute, ordinance,
regulation, court decision or the like as in force from time to time.

 

“Swiss Loan Party” means
(a) any Loan Party that is organized under the laws of Switzerland, (b) any Loan Party that is treated as resident in Switzerland
for Swiss Withholding Tax purposes and/or (c) any other Loan Party if, as a result of such Loan Party’s obtaining or maintaining
Credit Events hereunder, there is a bona fide risk that any payment hereunder would become subject to taxation for Swiss Withholding
Tax purposes.

 

“Swiss Qualifying Lender”
means (i) any bank as defined in the Swiss Federal Code for Banks and Savings Banks dated 8 November 1934 (Bundesgesetz über
die Banken und Sparkassen) as amended from time to time or (ii) a person or entity which effectively conducts banking activities
with its own infrastructure and staff as its principal business purpose and which has a banking license in full force and effect
issued in accordance with the banking laws in force in its jurisdiction of incorporation, or if acting through a branch, issued
in accordance with the banking laws in the jurisdiction of such branch, all and in each case in accordance with the Swiss Guidelines.

 

“Swiss Non-Bank Rules”
means together the Swiss Twenty Non-Bank Rule and the Swiss Ten-Non-Bank Rule.

 

    	 	34	 

     

    

 

“Swiss Non-Qualifying Lender”
means any person which does not qualify as a Swiss Qualifying Lender.

 

“Swiss Ten Non-Bank Rule”
means the rule that the aggregate number of Lenders (other than Swiss Qualifying Lenders) of any Swiss Loan Party under this Agreement
must not at any time exceed ten (10); in each case in accordance with the meaning of the Swiss Guidelines or the applicable legislation
or explanatory notes addressing the same issues that are in force at such time.

 

“Swiss Twenty Non-Bank Rule”
means the rule that (without duplication) the aggregate number of creditors (including the Lenders), other than Swiss Qualifying
Lenders, of the Swiss Borrower under all outstanding debts relevant for classification as debenture (Kassenobligation) (including
debt arising under this Agreement and intra-group loans (if and to the extent intra-group loans are not exempt in accordance with
the ordinance of the Swiss Federal Council of 18 June 2010 amending the Swiss Federal Ordinance on withholding tax and the Swiss
Federal Ordinance on stamp duties with effect as of 1 August 2010)), loans, facilities and/or private placements (including under
this Agreement) must not, at any time, exceed twenty (20); in each case in accordance with the meaning of the Swiss Guidelines.

 

“Swiss Withholding Tax”
means any Taxes levied pursuant to the Swiss Withholding Tax Act.

 

“Swiss Withholding Tax Act”
means the Swiss Federal Act on the Withholding Tax of 13 October 1965 (Bundesgesetz über die Verrechnungssteuer vom 13.
Oktober 1965, SR 642.21), together with the related ordinances, regulations and guidelines, all as amended and applicable from
time to time.

 

“Switzerland” means the Swiss Confederation.

 

“Syndication
Agent” means (i) each of Bank of America, N.A.,
MUFG Bank, Ltd., Citibank, N.A. and U.S. Bank National Association in its capacity as syndication agent for the credit
facility evidenced by this AgreementRevolving Credit
Facility and (ii) U.S. Bank National Association in its capacity as syndication agent for the Term Loan Facility.

 

“Synthetic Lease Obligations”
means obligations under operating leases (as determined pursuant to Statement of Financial Accounting Standards No. 13) of properties
which are reported for United States income tax purposes as owned by the Parent or a Consolidated Subsidiary. The amount of Synthetic
Lease Obligations under any such lease shall be determined in accordance with GAAP as if such operating lease were a capital lease.

 

“TARGET2” means the Trans-European
Automated Real-time Gross Settlement Express Transfer (TARGET2) payment system (or, if such payment system ceases to be operative,
such other payment system (if any) reasonably determined by the Administrative Agent to be a suitable replacement) for the settlement
of payments in euro.

 

“TARGET2 Day” means a day that
TARGET2 is open for the settlement of payments in euro.

 

“Taxes” means any and
all present or future taxes, levies, imposts, duties, deductions, fees, value added taxes, or any other goods and services, use
or sales taxes, assessments, charges or withholdings imposed by any Governmental Authority, including any interest, additions to
tax or penalties applicable thereto.

 

“Term
Lender” means, as of any date of determination, each Lender having a Term Loan Commitment or that holds Term Loans.

 

    	 	35	 

     

    

 

“Term
Loan Commitment” means (a) as to any Term Lender, the aggregate commitment of such Term Lender to make Term Loans as set
forth on Schedule 2.01 or in the Assignment and Assumption or other documentation or record (as such term is defined in Section
9-102(a)(70) of the New York Uniform Commercial Code) as provided in Section 9.04(b)(ii)(C) or other documentation contemplated
hereby pursuant to which such Lender shall have assumed its Term Loan Commitment, as applicable and (b) as to all Term Lenders,
the aggregate commitment of all Term Lenders to make Term Loans, which aggregate commitment shall be $200,000,000 on the Amendment
No. 1 Effective Date. After advancing the Term Loan, each reference to a Term Lender’s Term Loan Commitment shall refer
to that Term Lender’s Applicable Percentage of the Term Loans.

 

“Term
Loan Facility” means the term loan facility under this Agreement.

 

“Term
Loan Maturity Date” means the five year anniversary of the Effective Date, as extended (in the case of each Term Lender
consenting thereto) pursuant to Section 2.25; provided, however, in each case, if such date is not a Business Day, the Term Loan
Maturity Date shall be the next preceding Business Day.

 

“Term
Loans” means the term loans made by the Term Lenders to the Company pursuant to Section 2.01(b).

 

“Total Revolving
Credit Exposure” means, at any time, the sum of the outstanding principal amount of all Revolving
Lenders’ Revolving Loans, their LC Exposure and their Swingline Exposure at such time; provided, that clause
(a) of the definition of Swingline Exposure shall only be applicable to the extent Revolving
Lenders shall have funded their respective participations in the outstanding Swingline Loans.

 

“Trade Date” has the meaning specified
in Section 9.04(e)(i) hereof.

 

“Transactions” means
the execution, delivery and performance by the Loan Parties of this Agreement and the other Loan Documents, the borrowing of Loans,
the use of the proceeds thereof and the issuance of Letters of Credit hereunder.

 

“Type”, when used in
reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing,
is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

 

“Unfunded Vested Liabilities”
means, with respect to any Plan at any time, the amount (if any) by which (i) the current liability as defined in Section 412(l)(7)
of the Code under such Plan exceeds (ii) the fair market value of all Plan assets allocable to such benefits, all as determined
as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a potential liability
of the Parent or any ERISA Affiliate to the PBGC or such Plan under Title IV of ERISA.

 

“United States” and “U.S.”
each mean the United States of America.

 

“U.S. Lender” means a Lender that
is not a Foreign Lender.

 

“U.S. Person” means a
“United States person” within the meaning of Section 7701(a)(30) of the Code.

 

“U.S.
Special Resolution Regime” has the meaning assigned to it in Section 9.18.

 

“UK Bankruptcy Event” means:

 

    	 	36	 

     

    

 

 

“UK Treaty State” means
a jurisdiction having a double taxation agreement with the United Kingdom (a “UK Treaty”) which makes provision
for full exemption from Tax imposed by the United Kingdom on interest.

 

“VAT” means (a) any tax
imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax,
as amended (EC Directive 2006/112); and (b) any other tax of a similar nature, whether imposed in a member state of
the European Union in substitution for, or levied in addition to, such tax referred to in clause (a) above, or imposed elsewhere.

 

“Write-Down and Conversion Powers”
means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from
time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described
in the EU Bail-In Legislation Schedule.

 

SECTION 1.02 Classification of Loans
and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving
Loan”) or by Type (e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency
Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”)
or by Type (e.g., a “Eurocurrency Borrowing”) or by Class and Type (e.g., a “Eurocurrency Revolving
Borrowing”).

 

SECTION 1.03 Terms Generally. The
definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”. The word “law” shall be construed
as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder
having the force of law or with which affected Persons customarily comply), and all judgments, orders and decrees, of all Governmental
Authorities. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated,
supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications
set forth herein), (b) any definition of or reference to any statute, rule or regulation shall be construed as referring thereto
as from time to time amended, supplemented or otherwise modified (including by succession of comparable successor laws), (c) any
reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions
on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have
succeeded to any or all functions thereof, (d) the words “herein”, “hereof” and “hereunder”,
and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision
hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections
of, and Exhibits and Schedules to, this Agreement and (f) the words “asset” and “property” shall be construed
to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.

 

SECTION 1.04 Accounting Terms; GAAP.
Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance
with GAAP, as in effect from time to time; provided that, if the Company notifies the Administrative Agent that the Company
requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or
in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Company that the Required
Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect
and applied without giving effect to such change until such notice shall have been withdrawn or such provision amended in accordance
herewith.

 

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Notwithstanding any other provision contained
herein, (i) all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and
ratios referred to herein (including computations in respect of compliance with Sections 6.01 and 6.02) shall be
made (a) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards
Codification or Financial Accounting Standard having a similar result or effect) to value any Debt or other liabilities of the
Parent, the Company or any Subsidiary at “fair value”, as defined therein and (b) without giving effect to any treatment
of Debt in respect of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards
Codification or Financial Accounting Standard having a similar result or effect) to value any such Debt in a reduced or bifurcated
manner as described therein, and such Debt shall at all times be valued at the full stated principal amount thereof and (ii) except
to the extent contemplated by clause (b) of the second sentence of the definition of “Synthetic Lease Obligations”,
without giving effect to any change to, or modification of, or the phase-in of the effectiveness of any amendments to, GAAP which
would require the capitalization of leases characterized as “operating leases” as of the Effective Date (it being
understood and agreed, for the avoidance of doubt, financial statements delivered pursuant to Section 5.01(a) and 5.01(b)
shall be prepared without giving effect to this sentence).

 

SECTION 1.05 Interest Rates. The
Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to, the administration,
submission or any other matter related to the rates in the definition of “LIBO Rate” or with respect to any comparable
or successor rate thereto, or replacement rate therefor (other than, for the avoidance of doubt, with respect to its obligation
to apply the definition of such rate in accordance with its terms).

 

SECTION 1.06 Luxembourg Terms. Notwithstanding
any other provision of this Agreement to the contrary, in this Agreement where it relates to any Affiliate Borrower which is organized
under the laws of Luxembourg, a reference to: (a) a receiver, conservator, trustee, administrator, custodian, assignee for the
benefit of creditors, compulsory manager or other similar officer includes a juge délégué, commissaire,
juge-commissaire, mandataire ad hoc, administrateur provisoire, liquidateur or curateur; (b) liquidation, bankruptcy,
insolvency, reorganization, moratorium or any similar proceeding shall include (i) insolvency/bankruptcy (faillite) within
the meaning of Articles 437 ffet
seq. of the Luxembourg Commercial Code, (ii) controlled management (gestion
contrôlée) within the meaning of the grand ducal regulation of 24 May 1935 on controlled management, (iii) voluntary
arrangement with creditors (concordat préventif de la faillite) within the meaning of the law of 14 April 1886 on
arrangements to prevent insolvency, as amended, (iv) suspension of payments (sursis de paiement) within the meaning of Articles
593 ffet seq.
of the Luxembourg Commercial Code or (v) voluntary or compulsory winding-up pursuant to the law of 10 August 1915 on commercial
companies, as amended, (c) a lien or security interest includes any hypothèque, nantissement, gage, privilège,
sûreté réelle, droit de rétention, and any type of security in rem (sûreté réelle)
or agreement or arrangement having a similar effect and any transfer of title by way of security; (d) a person being unable to
pay its debts includes that person being in a state of cessation of payments (cessation de paiements) or having lost or
meeting the criteria to lose its commercial creditworthiness (ébranlement de crédit); (e) attachments
or similar creditors process means an executory attachment (saisie exécutoire) or conservatory attachment (saisie
arrêt); and (f) a “set-off” includes, for purposes of Luxembourg law, legal set-off.

 

SECTION 1.07 Certain Calculations.
No Default or Event of Default shall arise as a result of any limitation or threshold set forth in Dollars in Articles VI
and VII under this Agreement being exceeded solely as a result of changes in currency exchange rates from those rates applicable
on the last day of the fiscal quarter of the Parent immediately preceding the fiscal quarter of the Parent in which such transaction
requiring a determination occurs.

 

SECTION
1.08Divisions. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware
law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability
of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been
transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new
Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its equity
interests at such time.

 

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ARTICLE II.

 

THE CREDITS

 

SECTION 2.01 Commitments. Subject
to the terms and conditions set forth herein, (a) each Revolving
Lender (severally and not jointly) agrees to make Revolving Loans to the Borrowers in Agreed Loan Currencies from time to time
during the Availability Period in an aggregate principal amount that will not, subject to fluctuations in currency exchange rates
and Section 2.11.2 and subject to any application of proceeds of such Borrowing to any Swingline Loans outstanding pursuant
to Section 2.10(a)(i), result in (ai)
subject to Section 2.04, the Dollar Amount of such Lender’s Revolving Credit Exposure exceeding such Lender’s
Revolving Commitment, (bii)
subject to Section 2.04, the Dollar Amount of the Total Revolving Credit Exposures exceeding the Aggregate
Commitmentaggregate Revolving Commitments,
(ciii) subject
to Section 2.04, the sum of the aggregate principal Dollar Amount of all Loans outstanding to Affiliate Borrowers exceeding
the Affiliate Borrower Sublimit or (div)
subject to Section 2.04, the Dollar Amount of the total outstanding Revolving Loans and LC Exposure, in each case denominated
in Foreign Currencies, exceeding the Foreign Currency Sublimit, and
(b) each Term Lender with a Term Loan Commitment (severally and not jointly) agrees to make a Term Loan to the Company in Dollars
on the Amendment No. 1 Effective Date, in an amount equal to such Lender’s Term Loan Commitment by making immediately available
funds available to the Administrative Agent’s designated account, not later than the time contemplated by Section 2.07 (to
then be made available to the Company in accordance with Section 2.07). Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow Revolving Loans. Amounts
repaid or prepaid in respect of Term Loans may not be reborrowed.

 

SECTION 2.02 Loans and Borrowings.
(a) Each Revolving Loan (other than a Swingline Loan) shall be made as part of
a Borrowing consisting of Revolving Loans of
the same Class and Type made by the applicable
Lenders ratably in accordance with their respective Commitments of the
applicable Class. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender
of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Loans as required. Any Swingline Loan shall be made in accordance with the procedures
set forth in Section 2.05.

 

(b)       Subject
to Section 2.14, (i) each Revolving Borrowing and Term Loan Borrowing
shall be comprised entirely of ABR Loans or Eurocurrency Loans as the relevant Borrower may request in accordance herewith; provided
that each ABR Loan shall only be made in Dollars and no ABR Loan shall be made to a Designated Borrower and (ii) each Swingline
Loan shall be (x) an ABR Loan in the case of a Swingline Loan denominated in Dollars (other than a Designated Swingline Loan),
(y) a Eurocurrency Swingline Loan in the case of a Swingline Loan denominated in any Foreign Currency or (z) a Eurocurrency Swingline
Loan in the case of a Designated Swingline Loan. Each Lender at its option may make any Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan (and in the case of an Affiliate, the provisions of Sections 2.14,
2.15, 2.16 and 2.17 shall apply to such Affiliate to the same extent as to such Lender); provided that
any exercise of such option shall not affect the obligation of any Borrower to repay such Loan in accordance with the terms of
this Agreement.

 

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(c)       At
the commencement of each Interest Period for any Eurocurrency Revolving Borrowing, such Borrowing shall be in an aggregate
amount that is an integral multiple of $1,000,000 (or, if such Borrowing is denominated in a Foreign Currency, 1,000,000
units of such currency) and not less than $5,000,000 (or, if such Borrowing is denominated in a Foreign Currency, 5,000,000
units of such currency). At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $100,000 and not less than $1,000,000; provided that an ABR Revolving Borrowing
may be in an aggregate amount that is equal to the entire unused balance of the Aggregate
Commitmentaggregate Revolving
Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section
2.06(e). Each Swingline Loan shall be in an amount that is an integral multiple of $25,000 (or, if such Swingline Loan
is denominated in a Foreign Currency, 25,000 units of such currency) and not less than $100,000 (or, if such Swingline Loan
is denominated in a Foreign Currency, 100,000 units of such currency). Borrowings of more than one Type and Class may be
outstanding at the same time; provided that there shall not at any time be more than a total of fifteen (15) Eurocurrency
Borrowings outstanding.

 

(d)       Notwithstanding
any other provision of this Agreement, no Borrower shall be entitled to request, or to elect to convert or continue, any Borrowing
if the Interest Period requested with respect thereto would end after the applicable
Maturity Date.

 

SECTION 2.03 Requests for Revolving
Borrowings. To request a Revolving Borrowing, the applicable Borrower,
or the Company on behalf of the applicable Borrower, shall notify the Administrative Agent of such request (a) by irrevocable written
notice (via a written Borrowing Request signed by the applicable Borrower, or the Company on behalf of the applicable Borrower,
promptly followed by telephonic confirmation of such request) in the case of a Eurocurrency Borrowing, not later than 3:00 p.m.,
Local Time, three (3) Business Days (in the case of a Eurocurrency Borrowing denominated in Dollars) or by irrevocable written
notice (via a written Borrowing Request signed by such Borrower, or the Company on its behalf) not later than three (3) Business
Days (in the case of a Eurocurrency Borrowing denominated in a Foreign Currency), in each case before the date of the proposed
Borrowing or (b) by telephone in the case of an ABR Borrowing, not later than 12:00 noon, Chicago time, on the Business Day of
the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery,
telecopy or e-mail in accordance with Section 9.01 to the Administrative Agent of a written Borrowing Request signed by the applicable
Borrower, or the Company on behalf of the applicable Borrower. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with Section 2.02:

 

(i)         the name
of the applicable Borrower;

 

(ii)        the aggregate
principal amount of the requested Borrowing;

 

(iii)       the date
of such Borrowing, which shall be a Business Day;

 

(iv)       whether
such Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing and
whether such Borrowing is a Revolving Borrowing or a Term Loan Borrowing;

 

(v)       in
the case of a Eurocurrency Borrowing, the Agreed Currency and initial Interest Period to be applicable thereto, which shall be
a period contemplated by the definition of the term “Interest Period”; and

 

(vi)       the
location and number of the applicable Borrower’s account to which funds are to be disbursed, which shall comply with the
requirements of Section 2.07.

 

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If no election as to the Type of Revolving Borrowing
is specified, then, in the case of a Borrowing denominated in Dollars (other than a Designated Loan), the requested Revolving Borrowing
shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurocurrency Revolving Borrowing,
then the relevant Borrower shall be deemed to have selected an Interest Period of one month’s duration. Promptly
following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender
of the applicable Class of the details thereof and of
the amount of such Lender’s Loan to be made as part of the requested Borrowing.

 

SECTION 2.04 Determination of Dollar
Amounts. The Administrative Agent will determine the Dollar Amount of:

 

(a)       (i)
each Eurocurrency Borrowing (other than a Eurocurrency Swingline Borrowing) as of the date two (2) Business Days prior to the date
of such Borrowing or, if applicable, the date of conversion/continuation of any Borrowing as a Eurocurrency Borrowing and (ii)
each Eurocurrency Swingline Loan on the date of the making of such Swingline Loan,

 

(b)       the
LC Exposure as of the date of each request for the issuance, amendment to increase, renewal or extension of any Letter of Credit,
and

 

(c)       all
outstanding Credit Events on and as of the last Business Day of each calendar quarter and, during the continuation of an Event
of Default, on any other Business Day elected by the Administrative Agent in its discretion or upon instruction by the Required
Lenders.

 

Each day upon or as of which the Administrative Agent determines
Dollar Amounts as described in the preceding clauses (a), (b) and (c) is herein described as a “Computation Date” with
respect to each Credit Event for which a Dollar Amount is determined on or as of such day, and the Administrative Agent shall notify
the Company of all such determinations and related computations on such Computation Date.

 

SECTION 2.05 Swingline Loans. (a)
Subject to the terms and conditions set forth herein, each Swingline Lender may in its sole discretion make Swingline Loans in
Agreed Loan Currencies to any Borrower from time to time during the Availability Period, in an aggregate principal Dollar Amount
at any time outstanding that will not, subject to fluctuations in currency exchange rates and Section 2.11.2, result in
(i) subject to Section 2.04, the Dollar Amount of the aggregate principal amount of outstanding Swingline Loans made by
such Swingline Lender exceeding such Swingline Lender’s Swingline Sublimit, except to the extent otherwise agreed by such
Swingline Lender and the Company with notice to the Administrative Agent, (ii) subject to Section 2.04, any Swingline Lender’s
Revolving Credit Exposure exceeding its Revolving Commitment,
(iii) subject to Section 2.04, the aggregate principal Dollar Amount of outstanding Swingline Loans exceeding $75,000,000,
(iv) subject to Section 2.04, the Dollar Amount of the Total Revolving Credit Exposures exceeding the Aggregate
Commitmentaggregate Revolving Commitments
or (v) subject to Section 2.04, the Dollar Amount of the aggregate principal amount of outstanding Swingline Loans denominated
in a Foreign Currency exceeding the Swingline Foreign Currency Sublimit; provided that a Swingline Lender shall not be required
to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and conditions
set forth herein, any Borrower may borrow, prepay and reborrow Swingline Loans.

 

(b)       To
request a Swingline Loan, the applicable Borrower, or the Company on behalf of the applicable Borrower, shall notify the
Administrative Agent of such request by (i) telephone (confirmed by telecopy or e-mail in accordance with Section 9.01) or
via a written request (in accordance with Section 9.01) promptly followed by telephonic confirmation of such request, not
later than 1:00 p.m., Chicago time, on the day of a proposed Swingline Loan in Dollars (other than a Designated Swingline
Loan) and (ii) irrevocable written notice (via a written Borrowing Request signed by the applicable Borrower, or the Company
on behalf of the applicable Borrower, promptly followed by telephonic confirmation of such request), not later than 11:00
a.m., Local Time, on the day of a proposed Eurocurrency Swingline Loan in a Foreign Currency or a Designated Swingline Loan.
Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day), applicable
Borrower requesting such Swingline Loan, applicable currency, Interest Period (in the case of a Eurocurrency Swingline Loan),
Type and amount of the requested Swingline Loan and the Swingline Lender to make such Swingline Loan. The Administrative
Agent will promptly advise such Swingline Lender of any such notice received from the Company or any other applicable
Borrower. Unless otherwise directed by the Company or the applicable Borrower, each Swingline Lender shall (subject to such
Swingline Lender’s discretion to make Swingline Loans as set forth in Section 2.05(a)) make each Swingline Loan
to be made by it available to the applicable Borrower by means of a credit to an account of the Company or such other
applicable Borrower with the Administrative Agent designated for such purpose (or, in the case of a Swingline Loan made to
finance the reimbursement of an LC Disbursement as provided in Section 2.06(e), by remittance to the relevant Issuing Bank)
by 3:00 p.m., Local Time, on the requested date of such Swingline Loan.

 

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(c)       Any
Swingline Lender may by written notice given to the Administrative Agent require the Revolving
Lenders to acquire participations in all or a portion of its Swingline Loans outstanding in the applicable Agreed Currency of such
Swingline Loan or Loans. Such notice shall specify the aggregate amount and Agreed Currency of Swingline Loans in which Revolving
Lenders will participate. Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Revolving
Lender, specifying in such notice such Revolving Lender’s
Applicable Percentage of such Swingline Loan or Loans and the applicable Agreed Currency of such Swingline Loan or Loans. Each
Revolving Lender hereby absolutely and unconditionally agrees,
promptly upon receipt of such notice from the Administrative Agent (and in any event, if such notice is received by 12:00 noon,
Local Time, on a Business Day, no later than 5:00 p.m., Local Time, on such Business Day and if received after 12:00 noon, Local
Time, on a Business Day, no later than 10:00 a.m., Local Time, on the immediately succeeding Business Day), to pay in the applicable
Agreed Currency to the Administrative Agent, for the account of such Swingline Lender, such Revolving
Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Revolving
Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute
and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default
or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding
or reduction whatsoever. Each Revolving Lender shall comply
with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section
2.07 with respect to Loans made by such Revolving Lender
(and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Revolving
Lenders), and the Administrative Agent shall promptly pay to such Swingline Lender the amounts so received by it from the Revolving
Lenders. The Administrative Agent shall notify the Company promptly of any participations in any Swingline Loan acquired pursuant
to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not
to such Swingline Lender. Any amounts received by a Swingline Lender from the applicable Borrower (or other party on behalf of
such Borrower) in respect of a Swingline Loan after receipt by such Swingline Lender of the proceeds of a sale of participations
therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be
promptly remitted by the Administrative Agent to the Revolving
Lenders that shall have made their payments pursuant to this paragraph and to such Swingline Lender, as their interests may appear;
provided that any such payment so remitted shall be repaid to such Swingline Lender or to the Administrative Agent, as applicable,
if and to the extent such payment is required to be refunded to the applicable Borrower for any reason. The purchase of participations
in a Swingline Loan pursuant to this paragraph shall not relieve any Borrower of any default in the payment of any Swingline Loan
made to such Borrower.

 

(d)       Any
Swingline Lender may be replaced at any time by written agreement among the Company, the Administrative Agent, the replaced
Swingline Lender and the successor Swingline Lender. The Administrative Agent shall notify the Revolving Lenders
of any such replacement of the relevant Swingline Lender. At the time any such replacement shall become effective, the
Company shall pay all unpaid interest accrued for the account of the replaced Swingline Lender pursuant to Section
2.13(a). From and after the effective date of any such replacement, (i) the successor Swingline Lender shall have all the
rights and obligations of the replaced Swingline Lender under this Agreement with respect to Swingline Loans made thereafter
and (ii) references herein to the term “Swingline Lender” shall be deemed to refer to such successor or to any
previous Swingline Lender, or to such successor and all previous Swingline Lenders, as the context shall require. After the
replacement of a Swingline Lender hereunder, the replaced Swingline Lender shall remain a party hereto and shall continue to
have all the rights and obligations of a Swingline Lender under this Agreement with respect to Swingline Loans made by it
prior to its replacement, but shall not be required to make additional Swingline Loans.

 

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(e)       Subject
to the appointment and acceptance of a successor Swingline Lender, any Swingline Lender may resign as a Swingline Lender at any
time upon thirty (30) days’ prior written notice to the Administrative Agent, the Company and the Revolving
Lenders, in which case, such Swingline Lender shall be replaced in accordance with Section 2.05(d) above.

 

SECTION 2.06 Letters of Credit. (a)
General. Subject to the terms and conditions set forth herein, the Company may request the issuance of Letters of Credit
(or the amendment, renewal or extension of any outstanding Letter of Credit) denominated in Agreed LC Currencies for its own account,
as the applicant thereof for the support of its or its Subsidiaries’ obligations, in a form reasonably acceptable to the
Administrative Agent, the Company and the Issuing Bank issuing such Letter of Credit, at any time and from time to time during
the Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and
conditions of any form of letter of credit application or other agreement submitted by the Company to, or entered into by the Company
with, an Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control; provided, however,
if any Issuing Bank is requested to issue Letters of Credit with respect to a jurisdiction such Issuing Bank deems, in its reasonable
judgment applied generally to substantially similar credit facilities for which it acts as an issuing bank, may at any time subject
it to a New Money Credit Event or a Country Risk Event, the Issuing Bank shall promptly notify the Company of such determination
prior to the issuance of any Letter of Credit, and the Company shall either withdraw its request to issue such Letter of Credit
or, at the request of such Issuing Bank, guaranty and indemnify such Issuing Bank against any and all costs, liabilities and losses
resulting from such New Money Credit Event or Country Risk Event, in each case in a form and substance reasonably satisfactory
to such Issuing Bank. Notwithstanding anything herein to the contrary, no Issuing Bank shall have any obligation hereunder to issue,
and shall not issue, any Letter of Credit the proceeds of which would be made available to any Person (i) to fund any activity
or business of or with any Designated Person, or in any country or territory that, at the time of such funding, is the subject
of any Sanctions, (ii) in any manner that would result in a violation of any Sanctions by any party to this Agreement or (iii)
in any manner that would result in a violation of one or more policies of such Issuing Bank applicable to letters of credit generally.
The Parent unconditionally and irrevocably agrees that, in connection with any Letter of Credit issued for the support of any Subsidiary’s
obligations as provided in the first sentence of this paragraph, the Parent will be fully responsible for the reimbursement of
LC Disbursements in accordance with the terms hereof, the payment of interest thereon and the payment of fees due under Section
2.12(b) to the same extent as if it were the sole account party in respect of such Letter of Credit (the Parent hereby irrevocably
waiving any defenses that might otherwise be available to it as a guarantor or surety of the obligations of such a Subsidiary that
is an account party in respect of any such Letter of Credit).

 

(b)       Notice
of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the
amendment, renewal or extension of an outstanding Letter of Credit), the Company shall hand deliver or telecopy (or transmit
by electronic communication, if arrangements for doing so have been approved by such Issuing Bank) to the applicable Issuing
Bank (selected by the Company in its sole discretion) and the Administrative Agent (reasonably in advance of the requested
date of issuance, amendment, renewal or extension, but in any event no less than three (3) Business Days in advance thereof
unless a shorter period is acceptable to the applicable Issuing Bank in its sole discretion) a notice requesting the issuance
of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of
issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to
expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the Agreed LC Currency
applicable thereto, the name and address of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit. If requested by any Issuing Bank, the Company also shall submit a
letter of credit application in a form agreed to by the Company in connection with any request for a Letter of Credit. A
Letter of Credit shall be issued, amended to increase the amount, renewed or extended only if (and upon issuance, amendment
to increase the amount, renewal or extension of each Letter of Credit the Company shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension, but allowing for fluctuations in currency
exchange rates and subject to Section 2.11.2, (i) subject to Section 2.04, the Dollar Amount of the LC Exposure shall not
exceed $200,000,000, (ii) subject to Section 2.04, the Dollar Amount of the aggregate face amount of all Letters of Credit
issued and then outstanding by any Issuing Bank shall not exceed such Issuing Bank’s Applicable LC Sublimit, (iii)
subject to Section 2.04, the sum of the Dollar Amount of the Total Revolving Credit Exposures shall not exceed the Aggregate
Commitmentaggregate Revolving
Commitments, (iv) subject to Section 2.04, the Dollar Amount of each Lender’s Revolving Credit Exposure
shall not exceed such Lender’s Revolving Commitment and (v) subject to Section 2.04, the Dollar Amount of the total
outstanding Revolving Loans and LC Exposure, in each case denominated in Foreign Currencies, shall not exceed the Foreign
Currency Sublimit.

 

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(c)       Expiration
Date. Each Letter of Credit shall expire (or, if set forth in such Letter of Credit, be subject to termination by notice from
the Issuing Bank to the beneficiary thereof) at or prior to the close of business on the earlier of (i) the date two years after
the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, two years after such renewal
or extension), unless the Required Revolving Lenders and
the applicable Issuing Bank, in their discretion, have approved a later expiry date in writing and (ii) the date that is five (5)
Business Days prior to the Revolving Credit Maturity Date;
provided that, upon the Company’s request and subject to the approval, in its discretion, by the Administrative Agent and
the applicable Issuing Bank that has issued such Letter of Credit, any such Letter of Credit may have a later expiry date (but
in any event not later than one (1) year after the Revolving Credit
Maturity Date) if Cash Collateralized in compliance with Section 2.06(j) below.

 

(d)       Participations.
By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further
action on the part of any Issuing Bank or the Revolving Lenders,
each Issuing Bank hereby grants to each Revolving Lender,
and each Revolving Lender hereby acquires from such Issuing
Bank, a participation in such Letter of Credit equal to such Revolving
Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration
and in furtherance of the foregoing, each Revolving Lender
hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the relevant Issuing Bank,
such Revolving Lender’s Applicable Percentage of each
LC Disbursement made by such Issuing Bank and not reimbursed by the Company on the date due as provided in paragraph (e) of this
Section, or of any reimbursement payment required to be refunded to the Company for any reason. Each Revolving
Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of
Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal
or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments,
and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

 

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(e)       Reimbursement.
If any Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Company shall reimburse such LC
Disbursement by paying to the Administrative Agent in Dollars the Dollar Amount equal to such LC Disbursement, calculated as
of the date such Issuing Bank made such LC Disbursement (or if such Issuing Bank shall so elect in its sole discretion by
notice to the Company, in such other Agreed LC Currency which was paid by such Issuing Bank pursuant to such LC Disbursement
in an amount equal to such LC Disbursement) not later than 12:00 noon, Local Time, on the date that such LC Disbursement is
made, if the Company shall have received notice of such LC Disbursement prior to 10:00 a.m., Local Time, on such date, or, if
such notice has not been received by the Company prior to such time on such date, then not later than 12:00 noon, Local Time,
on (i) the Business Day that the Company receives such notice, if such notice is received prior to 10:00 a.m., Local Time, on
the day of receipt, or (ii) the Business Day immediately following the day that the Company receives such notice, if such
notice is not received prior to such time on the day of receipt; provided that, subject to the conditions to borrowing
set forth herein, (i) to the extent such LC Disbursement was made in Dollars, such payment shall, automatically and without
notice, be financed with (x) if the LC Disbursement is equal to or greater than $1,000,000, an ABR Revolving Borrowing in
Dollars or, at the Company’s election, a Swingline Loan, or (y) if the LC Disbursement is equal to or greater than
$100,000 but less than $1,000,000, a Swingline Loan, in each case in an amount equal to such LC Disbursement or (ii) to the
extent such LC Disbursement was made in a Foreign Currency, the Company may request in accordance with Section 2.03 that such
payment be financed with (i) an ABR Revolving Borrowing or Eurocurrency Revolving Borrowing in Dollars in the Dollar Amount
of such LC Disbursement or (ii) to the extent that such LC Disbursement was made in a Foreign Currency, a Eurocurrency
Revolving Borrowing in such Foreign Currency (in the event such Foreign Currency is an Agreed Loan Currency) in an amount
equal to such LC Disbursement, and, in each case, to the extent so financed, the Company’s obligation to make such
payment shall be discharged and replaced by the resulting ABR Revolving Borrowing, Swingline Loan or Eurocurrency Revolving
Borrowing, as applicable. If the Company fails to make such payment when due, the Administrative Agent shall notify each Revolving Lender
of the applicable LC Disbursement, the payment then due from the Company in respect thereof and such Revolving Lender’s
Applicable Percentage thereof. Promptly following receipt of such notice, each Revolving Lender
shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Company, in the same manner
as provided in Section 2.07 with respect to Loans made by such Revolving Lender
(and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Revolving Lenders,
provided that, with respect to any such payment in respect of a Letter of Credit denominated in an Agreed LC Currency that is
not an Agreed Loan Currency, any Revolving Lender may
make such payment in Dollars in the Dollar Amount of such LC Disbursement), and the Administrative Agent shall promptly pay
to such Issuing Bank the amounts so received by it from the Revolving Lenders.
Promptly following receipt by the Administrative Agent of any payment from the Company pursuant to this paragraph, the
Administrative Agent shall distribute such payment to such Issuing Bank or, to the extent that Revolving Lenders
have made payments pursuant to this paragraph to reimburse such Issuing Bank, then to such Revolving Lenders
and such Issuing Bank as their interests may appear. Any payment made by a Revolving Lender
pursuant to this paragraph to reimburse any Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving
Loans, Eurocurrency Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not
relieve the Company of its obligation to reimburse such LC Disbursement. If the Company’s reimbursement of, or
obligation to reimburse, any amounts in any Foreign Currency would subject the Administrative Agent, any Issuing Bank or any Revolving Lender
to any stamp duty, ad valorem charge or similar tax that would not be payable if such reimbursement were made or required to
be made in Dollars, the Administrative Agent shall promptly notify the Company prior to payment by the Company, and the
Company shall, at its option, either (x) pay the amount of any such tax requested by the Administrative Agent, the
relevant Issuing Bank or the relevant Revolving Lender
or (y) reimburse each LC Disbursement made in such Foreign Currency in Dollars, in an amount equal to the Dollar Amount,
calculated on the date such LC Disbursement is made, of such LC Disbursement.

 

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(f)       Obligations
Absolute. The Company’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section
shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this
Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) any payment by any Issuing Bank under a Letter of Credit against presentation of a draft or
other document that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a
legal or equitable discharge of, or provide a right of setoff against, the Company’s obligations hereunder. Neither the
Administrative Agent, the Revolving Lenders nor the
Issuing Banks, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection
with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective
of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence
arising from causes beyond the control of an Issuing Bank; provided that the foregoing shall not be construed to
excuse any Issuing Bank from liability to the Company to the extent of any direct damages (as opposed to special, indirect,
consequential or punitive damages, claims in respect of which are hereby waived by the Company to the extent permitted by
applicable law) suffered by the Company that are caused by such Issuing Bank’s failure to exercise care when
determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties
hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of an Issuing Bank (as
finally determined by a court of competent jurisdiction), such Issuing Bank shall be deemed to have exercised care in each
such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with
respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of
Credit, the relevant Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and
make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 

(g)       Disbursement
Procedures. Each Issuing Bank shall, within the time period stipulated by the terms and conditions of the applicable Letter
of Credit following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit.
After such examination, such Issuing Bank shall promptly notify the Administrative Agent and the Company by telephone (confirmed
by telecopy or e-mail in accordance with Section 9.01) of such demand for payment and whether such Issuing Bank has made
or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve
the Company of its obligation to reimburse such Issuing Bank and the Revolving
Lenders with respect to any such LC Disbursement in accordance with Section 2.06(e).

 

(h)       Interim
Interest. If any Issuing Bank shall make any LC Disbursement, then, unless the Company shall reimburse such LC Disbursement
in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including
the date such LC Disbursement is made to but excluding the date that the Company reimburses such LC Disbursement, at the rate per
annum then applicable to ABR Revolving Loans (or in the case such LC Disbursement is denominated in a Foreign Currency, at the
Overnight Foreign Currency Rate for such Agreed LC Currency plus the then effective Applicable Rate with respect to Eurocurrency
Revolving Loans); provided that, if the Company fails to reimburse such LC Disbursement when due pursuant to paragraph (e)
of this Section, then Section 2.13(b) shall apply. Interest accrued pursuant to this paragraph shall be for the account
of the relevant Issuing Bank, except that interest accrued on and after the date of payment by any Revolving
Lender pursuant to paragraph (e) of this Section to reimburse any Issuing Bank shall be for the account of such Revolving
Lender to the extent of such payment.

 

(i)       Replacement
of Issuing Bank. (A) Each Issuing Bank may be replaced at any time by written agreement among the Company, the Administrative
Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Revolving
Lenders of any such replacement of an Issuing Bank. At the time any such replacement shall become effective, the Company shall
pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b). From and after the
effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of an Issuing
Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing
Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing
Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain
a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to
Letters of Credit then outstanding and issued by it prior to such replacement, but shall not be required to issue additional Letters
of Credit.

 

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(B)       Subject
to the appointment and acceptance of a successor Issuing Bank, any Issuing Bank may resign as an Issuing Bank at any time upon
thirty days’ prior written notice to the Administrative Agent, the Borrower and the Revolving
Lenders, in which case, such Issuing Bank shall be replaced in accordance with Section 2.06(i)(A) above.

 

(j)            Cover.
If (x) any Event of Default shall occur and be continuing, on the Business Day that the Company receives notice from the Administrative
Agent or the Required Revolving Lenders (or, if the maturity
of the Loans has been accelerated, Revolving Lenders with
LC Exposure representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this
paragraph or (y) the Company requests the issuance of a Letter of Credit with an expiry date that is later than the expiry date
prescribed in clause (c) of this Section 2.06 (an “Extended Letter of Credit”), the Company shall either (A)
cover by arranging for the issuance of one or more standby letters of credit issued by an issuer, and otherwise on terms and conditions,
satisfactory to the Administrative Agent or (B) deposit cash in an account with the Administrative Agent, in each case in the
name of the Administrative Agent and for the benefit of the Administrative Agent, the Issuing Banks and the Revolving
Lenders, and in an amount equal to (1) with respect to a Letter of Credit denominated in Dollars, 100% and (2) with
respect to a Foreign Currency Letter of Credit, 105%, in each case of the Dollar Amount of the LC Exposure in respect of such
Extended Letter of Credit (in the case of the foregoing clause (y)) or in the aggregate (in the case of the foregoing clause (x))
as of such date plus any accrued and unpaid interest thereon; provided that (i) the portions of such amount attributable
to undrawn Foreign Currency Letters of Credit or LC Disbursements in a Foreign Currency that the Company is not late in reimbursing
shall be covered or deposited in the applicable Foreign Currencies in an amount equal to 105% of the actual amounts of such undrawn
Letters of Credit and LC Disbursements and (ii) the obligation to provide such letter(s) of credit cover or deposit such cash
collateral shall become effective immediately, and such cover or deposit shall become immediately due and payable, without demand
or other notice of any kind, upon the occurrence of any Event of Default with respect to the Company described in clause (f),
(g) or (h) of Article VII. For the purposes of this paragraph, the Foreign Currency LC Exposure shall be calculated using
the Dollar Amount thereof on the date notice demanding letter of credit cover or cash collateralization is delivered to the Company.
The Company also shall deposit cash collateral pursuant to this paragraph as and to the extent required by Section 2.11.2.
Any such deposits shall be held by the Administrative Agent as collateral for the payment and performance of the Obligations.
The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account.
Such deposits shall bear interest, and such deposits shall be invested by the Administrative Agent in direct short term obligations
of, or in other short term obligations which are unconditionally guaranteed with respect to all principal thereof and interest
thereon by, the United States, in each case maturing no later than the expiry date of the Letter of Credit giving rise to LC Exposure.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by
the Administrative Agent to reimburse each Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the
extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Company for the LC Exposure
at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Revolving
Lenders with LC Exposure representing greater than 50% of the total LC Exposure), be applied to satisfy other Obligations;
provided that at any time that the money remaining in such account exceeds the LC Exposure by $100,000 or more, the Administrative
Agent will, promptly after request therefor by the Company at any time that no Default shall exist, deliver such excess to the
Company. If the Company is required to provide an amount of cash collateral or letter of credit cover hereunder as a result of
the occurrence of an Event of Default, such amount or letter of credit (to the extent not applied as aforesaid) shall be returned
to the Company or the issuer of such letter of credit (as applicable) within three (3) Business Days after all Events of Default
have been cured or waived.

  

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(k)            Conversion.
In the event that the Loans become immediately due and payable on any date pursuant to Article VII, all amounts (i) that the Company
is at the time or thereafter becomes required to reimburse or otherwise pay to the Administrative Agent in respect of LC Disbursements
made under any Foreign Currency Letter of Credit (other than amounts in respect of which the Company has provided letter of credit
cover, or deposited cash collateral, pursuant to paragraph (j) above, if such letter of credit was issued, or cash collateral was
deposited, in the applicable Foreign Currency to the extent so deposited or applied), (ii) that the Revolving
Lenders are at the time or thereafter become required to pay to the Administrative Agent and the Administrative Agent is at the
time or thereafter becomes required to distribute to any Issuing Bank pursuant to paragraph (e) of this Section in respect of unreimbursed
LC Disbursements made under any Foreign Currency Letter of Credit and (iii) of each Revolving
Lender’s participation in any Foreign Currency Letter of Credit under which an LC Disbursement has been made shall, automatically
and with no further action required, be converted into the Dollar Amount thereof, calculated on such date (or in the case of any
LC Disbursement made after such date, on the date such LC Disbursement is made), of such amounts. On and after such conversion,
all amounts accruing and owed to the Administrative Agent, any Issuing Bank or any Revolving
Lender in respect of the obligations described in this paragraph shall accrue and be payable in Dollars at the rates otherwise
applicable hereunder.

 

(l)            Issuing
Bank Agreements. Each Issuing Bank agrees that, unless otherwise requested by the Administrative Agent, such Issuing Bank shall
report in writing to the Administrative Agent (i) on the first Business Day of each week, the daily activity (set forth by day)
in respect of Letters of Credit during the immediately preceding week, including all issuances, extensions, amendments and renewals,
all expirations and cancellations and all disbursements and reimbursements, (ii) on or prior to each Business Day on which such
Issuing Bank expects to issue, amend, renew or extend any Letter of Credit, the date of such issuance, amendment, renewal or extension,
and the aggregate face amount of the Letters of Credit to be issued, amended, renewed or extended by it and outstanding after giving
effect to such issuance, amendment, renewal or extension occurred (and whether the amount thereof changed), it being understood
that such Issuing Bank shall not permit any issuance, renewal, extension or amendment resulting in an increase in the amount of
any Letter of Credit to occur without first obtaining written confirmation from the Administrative Agent that it is then permitted
under this Agreement, (iii) on each Business Day on which such Issuing Bank makes any LC Disbursement, the date of such LC Disbursement
and the amount of such LC Disbursement, (iv) on any Business Day on which any Borrower fails to reimburse an LC Disbursement required
to be reimbursed to such Issuing Bank on such day, the date of such failure and the amount and currency of such LC Disbursement
and (v) on any other Business Day, such other information as the Administrative Agent shall reasonably request.

 

SECTION 2.07 Funding of
Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date specified in accordance
with the terms hereof in the Borrowing Request solely by wire transfer of immediately available funds (i) in the case of
Loans denominated in Dollars (other than a Designated Loan), by 1:00 p.m., Chicago time, to the account of the Administrative
Agent most recently designated by it for such purpose by notice to the Lenders and (ii) in the case of each Loan denominated
in a Foreign Currency and Designated Loans, by 1:00 p.m., Local Time, in the city of the Administrative Agent’s
Eurocurrency Payment Office for such currency and at such Eurocurrency Payment Office for such currency; provided that
Swingline Loans shall be made as provided in Section 2.05. Except in respect of the provisions of this Agreement covering the
reimbursement of Letters of Credit, the Administrative Agent will make such Loans available to the relevant Borrower by
promptly crediting funds so received in the aforesaid account of the Administrative Agent to (x) an account of the Company
maintained with the Administrative Agent in New York City or Chicago and designated by the relevant Borrower in the
applicable Borrowing Request, in the case of Loans denominated in Dollars and (y) an account of such Borrower maintained in
the relevant jurisdiction and designated by such Borrower in the applicable Borrowing Request, in the case of Loans
denominated in a Foreign Currency; provided that Revolving Loans made to finance the reimbursement of an LC
Disbursement as provided in Section 2.06(e) shall be remitted by the Administrative Agent to the relevant
Issuing Bank.

 

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(b)            Unless
the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing (or in the case of
an ABR Borrowing, prior to 1:00 p.m., Chicago time, on the date of such Borrowing) that such Lender will not make available to
the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption,
make available to the relevant Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then the applicable Lender and such Borrower severally agree to pay
to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including
the date such amount is made available to such Borrower to but excluding the date of payment to the Administrative Agent, at (i)
in the case of such Lender, the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation (including without limitation the Overnight Foreign Currency Rate in the case
of Loans denominated in a Foreign Currency) or (ii) in the case of such Borrower, the interest rate applicable to ABR Loans. If
such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in
such Borrowing.

 

SECTION 2.08 Interest Elections.
(a) Each Revolving Borrowing initially shall be of the Type specified in the applicable
Borrowing Request (or, if not so specified, as provided in Section 2.03) and, in the case of a Eurocurrency Revolving
Borrowing, shall have an initial Interest Period as specified in such Borrowing Request (or, if not so specified, as provided in
Section 2.03). Thereafter, the relevant Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing
and, in the case of a Eurocurrency Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section. A Borrower may elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing,
and the Loans comprising each such portion shall be considered a separate Borrowing. This Section shall not apply to Swingline
Borrowings, which may not be converted or continued.

 

(b)            To
make an election pursuant to this Section, a Borrower, or the Company on its behalf, shall notify the Administrative Agent of such
election (by telephone or irrevocable written notice in the case of a Borrowing denominated in Dollars (other than Designated Loans)
or by irrevocable written notice (via an Interest Election Request signed by such Borrower, or the Company on its behalf) in the
case of a Borrowing denominated in a Foreign Currency or a Designated Loan) by the time that a Borrowing Request would be required
under Section 2.03 if such Borrower were requesting a Revolving Borrowing of the
Type resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request
shall be irrevocable and shall be confirmed promptly by hand delivery, telecopy or e-mail in accordance with Section 9.01 to the
Administrative Agent of a written Interest Election Request signed by the relevant Borrower, or the Company on its behalf. Notwithstanding
any contrary provision herein, this Section shall not be construed to permit any Borrower to (i) change the currency of any Borrowing,
(ii) elect an Interest Period for Eurocurrency Loans that does not comply with Section 2.02(d) or (iii) convert any Borrowing to
a Borrowing of a Type not available under the Class of Commitments pursuant to which such Borrowing was made.

 

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(c)            Each
telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02:

 

(i)       the
name of the applicable Borrower and the Borrowing to which such Interest Election Request applies and, if different options are
being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in
which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

 

(ii)     the
effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

 

(iii)    whether
the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing; and

 

(iv)    if
the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period and Agreed Currency to be applicable thereto after giving
effect to such election, which Interest Period shall be a period contemplated by the definition of the term “Interest Period”.

 

If any such Interest Election Request requests a Eurocurrency
Borrowing but does not specify an Interest Period, then the applicable Borrower shall be deemed to have selected an Interest Period
of one month’s duration.

 

(d)            Promptly
following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the applicable
Class of the details thereof and of such Lender’s portion of each resulting Borrowing.

 

(e)            If
the relevant Borrower fails to deliver a timely Interest Election Request with respect to a Eurocurrency Revolving
Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period (i) in the case of a Borrowing denominated in Dollars (other than Designated
Loans), such Borrowing shall be converted to an ABR Borrowing; provided that if the Company shall have delivered to the
Administrative Agent its customary standard documentation pre-authorizing automatic continuations, such Borrowing shall automatically
continue as a Eurocurrency Borrowing in Dollars with an Interest Period of one month unless such Eurocurrency Borrowing is or was
repaid in accordance with Section 2.11 and (ii) in the case of a Borrowing denominated in a Foreign Currency or a Designated Loan
in respect of which the applicable Borrower shall have failed to deliver an Interest Election Request prior to the third (3rd)
Business Day preceding the end of such Interest Period, such Borrowing shall automatically continue as a Eurocurrency Borrowing
in the same Agreed Currency with an Interest Period of one month unless such Eurocurrency Borrowing is or was repaid in accordance
with Section 2.11. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies the Company, then, so long as an Event of Default is
continuing (i) no outstanding Revolving Borrowing denominated in Dollars (other
than Designated Loans) may be converted to or continued as a Eurocurrency Borrowing, (ii) unless repaid, each Eurocurrency Revolving
Borrowing denominated in Dollars (other than Designated Loans) shall be converted to an ABR Borrowing at the end
of the Interest Period applicable thereto and (iii) unless repaid, each Eurocurrency Revolving
Borrowing denominated in a Foreign Currency and each Designated Loan shall automatically be continued as a Eurocurrency
Borrowing with an Interest Period of one month.

 

SECTION 2.09 Termination and Reduction of Commitments.

 

(a)       Unless
previously terminated, (i) the Term
Loan Commitments shall terminate at 2:00 p.m., Chicago time, on the Amendment No. 1 Effective Date (or, as to any Term Lender that
fails to fund its portion of the initial Term Loans as and to the extent required by the terms hereof, upon the funding thereof
pursuant to this Agreement), and (ii) the Revolving Commitments shall terminate on the Revolving
Credit Maturity Date (subject to Section 2.25).

 

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(b)            The
Company may at any time terminate, or from time to time reduce, the Revolving
Commitments; provided that (i) each reduction of the Revolving
Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Company
shall not terminate or reduce the Revolving Commitments if,
after giving effect to any concurrent prepayment of the Revolving
Loans in accordance with Section 2.11, the Dollar Amount of the sum of the Total Revolving Credit Exposures would exceed
the Aggregate Commitmentaggregate
Revolving Commitments.

 

(c)            Notwithstanding
the foregoing, upon the acquisition of one Lender by another Lender, or the merger, consolidation or other combination of any two
or more Lenders (any such acquisition, merger, consolidation or other combination being referred to hereinafter as a “Combination”
and each Lender which is a party to such Combination being hereinafter referred to as a “Combined Lender”),
the Company may notify the Administrative Agent that it desires to reduce the Revolving
Commitment of the Lender surviving such Combination (the “Surviving Lender”) to an amount equal to the Revolving
Commitment of that Combined Lender which had the largest Revolving
Commitment of each of the Combined Lenders party to such Combination (such largest Revolving
Commitment being the “Surviving Commitment” and the Revolving
Commitments of the other Combined Lenders being hereinafter referred to, collectively, as the “Retired Commitments”).
If the Required Revolving Lenders (determined as set forth
below) and the Administrative Agent agree to such reduction in the Surviving Lender’s Revolving
Commitment, then (i) the aggregate amount of the Revolving
Commitments shall be reduced by the Retired Commitments effective upon the effective date of the Combination, provided, that, on
or before such date the Borrowers have paid in full the outstanding principal amount of the Loans of each of the Combined Lenders
other than the Combined Lender whose Revolving Commitment
is the Surviving Commitment, (ii) from and after the effective date of such reduction, the Surviving Lender shall have no obligation
with respect to the Retired Commitments, and (iii) the Company shall notify the Administrative Agent whether they wish such reduction
to be a permanent reduction or a temporary reduction. If such reduction is to be a temporary reduction, then the Company shall
be responsible for finding one or more financial institutions (each, a “Replacement Lender”), acceptable to
the Administrative Agent (such acceptance not to be unreasonably withheld or delayed), willing to assume the obligations of a Lender
hereunder with aggregate Revolving Commitments up to the
amount of the Retired Commitments. The Administrative Agent may require the Replacement Lenders to execute such documents, instruments
or agreements as the Administrative Agent deems necessary or desirable to evidence such Replacement Lenders’ agreement to
become parties hereunder. For purposes of this Section 2.09(c), Required Revolving
Lenders shall be determined as if the reduction in the aggregate amount of the Revolving
Commitments requested by the Company had occurred (i.e., the Combined Lenders shall be deemed to have a single Revolving
Commitment equal to the Surviving Commitment and the aggregate amount of the Revolving
Commitments shall be deemed to have been reduced by the Retired Commitments).

 

(d)            The
Company shall notify the Administrative Agent of any election to terminate or reduce the Revolving
Commitments under paragraph (b) of this Section at least three (3) Business Days prior to the effective date of such termination
or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative
Agent shall advise the Revolving Lenders of the contents
thereof. Each notice delivered by the Company pursuant to this Section shall be irrevocable; provided that a notice of termination
of the Revolving Commitments delivered by the Company may
state that such notice is conditioned upon the effectiveness of other credit facilities or other transactions specified therein,
in which case such notice may be revoked by the Company (by notice to the Administrative Agent on or prior to the specified effective
date) if such condition is not satisfied. Any termination or reduction of the Revolving
Commitments shall be permanent. Each reduction of the Revolving
Commitments shall be made ratably among the Revolving Lenders
in accordance with their respective Revolving Commitments.

 

    	 	53	 

     

    

 

SECTION 2.10 Repayment of Loans; Evidence of Indebtedness.

 

(a)            (i)
Each Borrower hereby unconditionally promises to pay (iA)
to the Administrative Agent for the account of each Revolving
Lender the then unpaid principal amount of each Revolving Loan made to such Borrower on the Revolving
Credit Maturity Date in the currency of such Loan and (iiB)
to the relevant Swingline Lender the then unpaid principal amount of each Swingline Loan made to such Borrower by such Swingline
Lender on the earlier of the Revolving Credit Maturity Date
and the 14th Business Day after the date such Swingline Loan is made; provided that on each date that a Revolving
Borrowing is made, the Company shall repay all Swingline Loans then outstanding and the proceeds of any such Borrowing shall be
applied by the Administrative Agent to repay any Swingline Loans outstanding.

 

(ii)            The
Company hereby unconditionally promises to pay to the Administrative Agent for the account of the Term Lenders the then unpaid
principal amount of all Term Loans on the Term Loan Maturity Date in Dollars.

 

(b)            Each
Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of each Borrower
to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to
such Lender from time to time hereunder.

 

(c)            The
Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class, Agreed
Currency and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable
or to become due and payable from each Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

 

(d)            The
entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of
the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of any Borrower to repay the
Loans in accordance with the terms of this Agreement.

 

(e)            Any
Lender may request that Loans made by it to any Borrower be evidenced by a promissory note. In such event, the relevant Borrower
shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to
such Lender and its registered assigns) and in a form attached hereto as Exhibit DD-1
or D-2, as applicable. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form.

 

SECTION 2.11 Prepayment of Loans.

 

SECTION 2.11.1. Voluntary Prepayments.

 

(a)            Any
Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to
prior notice in accordance with paragraph (b) of this Section; provided that (i) each prepayment of a Eurocurrency
Borrowing (other than in connection with a prepayment of all outstanding Eurocurrency Borrowings and/or a prepayment of a
Eurocurrency Borrowing made to refinance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e))
shall be in an amount that is an integral multiple of $1,000,000 (or, if such Borrowing is denominated in a Foreign Currency,
1,000,000 units of such currency) and not less than $5,000,000 (or, if such Borrowing is denominated in a Foreign Currency,
5,000,000 units of such currency) and (ii) each prepayment of an ABR Borrowing (other than in connection with a prepayment of
all outstanding ABR Borrowings and/or a prepayment of an ABR Borrowing made to refinance the reimbursement of an LC
Disbursement as contemplated by Section 2.06(e)) shall be in an amount that is an integral multiple of $100,000 and
not less than $1,000,000.

 

    	 	54	 

     

    

 

(b)            The
applicable Borrower, or the Company on behalf of the applicable Borrower, shall notify the Administrative Agent by telephone (confirmed
by telecopy or e-mail in accordance with Section 9.01) of any prepayment hereunder (other than a prepayment of a Swingline
Loan) (i) in the case of prepayment of a Eurocurrency Revolving Borrowing and
any Designated Loan, not later than 3:00 p.m., Local Time, three (3) Business Days before the date of prepayment, (ii) in the case
of prepayment of an ABR Revolving Borrowing, not later than 1:00 p.m., Chicago
time, on the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 1:00 p.m., Local Time, on
the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of
each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a
conditional notice of termination of the Revolving Commitments
as contemplated by Section 2.09, or a notice of prepayment of
Term Loans is conditioned upon the effectiveness of other credit facilities or other transactions specified therein,
then such notice of prepayment may be revoked if such notice of termination is revoked in accordance
with Section 2.09by the Company
(by notice to the Administrative Agent on or prior to the specified prepayment date) if the applicable condition is not satisfied.
Promptly following receipt of any such notice relating to a Revolving Borrowing,
the Administrative Agent shall advise the Lenders of the applicable
Class of the contents thereof. Each partial prepayment of any Revolving
Borrowing shall be in an amount that would be permitted in the case of an advance of a Revolving
Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be applied ratably
to the Revolving Loans included in the prepaid Revolving
Borrowing, and each voluntary prepayment of a Term Loan Borrowing shall be applied ratably to the Term Loans included in the prepaid
Term Loan Borrowing. Prepayments shall be accompanied by (i) accrued interest to the extent required by Section 2.13
and (ii) break funding payments pursuant to Section 2.16.

 

SECTION 2.11.2. Mandatory
Prepayments. If at any time, (i) other than as a result of fluctuations in currency exchange rates, (w) the aggregate
principal Dollar Amount of the Total Revolving Credit Exposures (calculated, with respect to those Credit Events denominated
in Foreign Currencies, as of the most recent Computation Date with respect to each such Credit Event) exceeds the Aggregate
Commitmentaggregate Revolving
Commitments, (x) the aggregate principal Dollar Amount of all Revolving
Loans (calculated, with respect to those Credit Events denominated in Foreign Currencies, as of the most recent Computation
Date with respect to each such Credit Event) outstanding denominated in Foreign Currencies exceeds the Foreign Currency
Sublimit, (y) the aggregate principal Dollar Amount of all Revolving
Loans (calculated, with respect to those Credit Events denominated in Foreign Currencies, as of the most recent Computation
Date with respect to each such Credit Event) outstanding to the Affiliate Borrowers exceeds the Affiliate Borrower Sublimit
or (z) the aggregate principal Dollar Amount of all Swingline Loans (calculated, with respect to those Swingline Loans
denominated in Foreign Currencies, as of the most recent Computation Date with respect to each such Swingline Loan)
outstanding denominated in Foreign Currencies exceeds the Swingline Foreign Currency Sublimit or (ii) solely as a result of
fluctuations in currency exchange rates, (w) the aggregate principal Dollar Amount of the Total Revolving Credit Exposures
(as so calculated) exceeds 105% of the Aggregate Commitmentaggregate
Revolving Commitments, (x) the aggregate principal Dollar Amount of all of the Revolving Credit Exposures (as so
calculated) denominated in Foreign Currencies exceeds 105% of the Foreign Currency Sublimit, (y) the aggregate principal
Dollar Amount of all of the Revolving Credit Exposures (as so calculated) to the Affiliate Borrowers exceeds 105% of the
Affiliate Borrower Sublimit or (z) the aggregate principal Dollar Amount of all Swingline Loans (as so calculated)
denominated in Foreign Currencies exceeds 105% of the Swingline Foreign Currency Sublimit, the Borrowers shall, promptly
after receipt of written notice from the Administrative Agent, repay Revolving Borrowings
and, if no Revolving Borrowings are then outstanding,
Cash Collateralize LC Exposure in an account with the Administrative Agent pursuant to Section 2.06(j), in an
aggregate principal amount sufficient to eliminate any such excess.

 

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SECTION 2.12 Fees. (a) The Company
agrees to pay to the Administrative Agent for the account of each Revolving
Lender a facility fee, which shall accrue at the Applicable Rate on the average daily amount of the Revolving
Commitment of such Revolving Lender (whether used or unused)
during the period from and including the Effective Date to but excluding the date on which such Revolving
Commitment terminates; provided that, if such Revolving Lender
continues to have any Revolving Credit Exposure after its Revolving
Commitment terminates, then such facility fee shall continue to accrue on the daily amount of such Revolving
Lender’s Revolving Credit Exposure from and including the date on which its Revolving
Commitment terminates to but excluding the date on which such Revolving
Lender ceases to have any Revolving Credit Exposure. Accrued facility fees shall be payable in arrears on the fifteenth Business
Day following the last day of March, June, September and December of each year and on the date on which the Revolving
Commitments terminate, commencing on the first such date to occur after the date hereof; provided that any facility fees accruing
after the date on which the Revolving Commitments terminate
shall be payable on demand. All facility fees shall be computed on the basis of a year of 360 days and shall be payable for the
actual number of days elapsed (including the first day but excluding the last day).

 

(b)       The
Company agrees to pay (i) to the Administrative Agent for the account of each Revolving
Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the Applicable LC Fee
Rate (as defined below) on the average daily Dollar Amount of such Revolving
Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from
and including the Effective Date to but excluding the later of the date on which such Revolving
Lender’s Revolving Commitment terminates and the date
on which such Revolving Lender ceases to have any LC Exposure,
and (ii) to each Issuing Bank for its own account a fronting fee, which shall accrue at a rate per annum separately agreed upon
between the Company and such Issuing Bank on the average daily Dollar Amount of the LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) attributable to Letters of Credit issued by the relevant Issuing Bank during the
period from and including the Effective Date to but excluding the date on which there ceases to be any LC Exposure, as well as
such Issuing Bank’s standard fees and commissions with respect to the issuance, amendment, cancellation, negotiation, transfer,
presentment, renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation fees and fronting
fees accrued through and including the last day of March, June, September and December of each year shall be payable on the fifteenth
Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such
fees shall be payable on the date on which the Revolving
Commitments terminate and any such fees accruing after the date on which the Revolving
Commitments terminate shall be payable promptly after demand. Any other fees payable to any Issuing Bank pursuant to this paragraph
shall be payable within 30 days after demand accompanied by an invoice in reasonable detail. All participation fees and fronting
fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). Participation fees and fronting fees in respect of Letters of Credit denominated in
Dollars shall be paid in Dollars, and participation fees and fronting fees in respect of Letters of Credit denominated in a Foreign
Currency shall be paid in such Foreign Currency. As used above, “Applicable LC Fee Rate” means at any time (x) in the
case of standby Letters of Credit (other than those described in the following clause (y)), the same Applicable Rate used to determine
the interest rate applicable to Eurocurrency Revolving Loans at such time and (y) in the case of commercial Letters of Credit and
standby Letters of Credit issued to ensure the performance of services and/or delivery of goods, in each case at a per annum rate
equal to 50% of the Applicable Rate used to determine the interest rate applicable to Eurocurrency Revolving Loans at such time.

 

    	 	56	 

     

    

 

(c)       The
Company agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately
agreed upon between the Company and the Administrative Agent.

 

(d)       All
fees payable hereunder shall be paid on the dates due, in immediately available funds in Dollars (except as expressly provided
in this Section), to the Administrative Agent (or to the relevant Issuing Bank, in the case of fees payable to it) for distribution,
in the case of facility fees and participation fees, to the applicable
Lenders. Fees paid shall not be refundable under any circumstances.

 

SECTION 2.13 Interest.

 

(a)       The
Loans comprising each ABR Borrowing (other than any Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable
Rate. Each Swingline Loan shall bear interest at a rate per annum agreed upon between the Company and the relevant Swingline Lender
(or, if such a rate per annum is not agreed upon between the Company and the relevant Swingline Lender in respect of a Swingline
Loan, such Swingline Loan shall bear interest at (i) in the case of a Swingline Loan denominated in Dollars other than a Designated
Swingline Loan, the Alternate Base Rate plus the Applicable Rate for
ABR Revolving Borrowings or (ii) in the case of a Swingline Loan denominated in a Foreign Currency or a Designated Swingline
Loan, the Eurocurrency Swingline Rate plus the Applicable Rate). The Loans comprising each Eurocurrency Borrowing (other than any
Eurocurrency Swingline Borrowing) shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing
plus the Applicable Rate.

 

(b)       Notwithstanding
the foregoing, if any principal of or interest on any Loan or any fee payable by any Borrower hereunder is not paid when due, whether
at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment,
at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan
as provided in the preceding paragraphs of this Section or (ii) in the case of any interest or fee, 2% plus the rate applicable
to ABR Loans as provided in paragraph (a) of this Section.

 

(c)       Accrued
interest on each Revolving Loan shall be payable in arrears on each Interest Payment
Date for such Revolving Loan and,
in the case of Revolving Loans, upon termination of the Revolving
Commitments; provided that (i) interest accrued pursuant to paragraph (b) of this Section shall be payable on demand, (ii)
in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the
Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment
or prepayment and (iii) in the event of any conversion of any Eurocurrency Revolving
Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective
date of such conversion.

 

(d)       All
interest hereunder shall be computed on the basis of a year of 360 days, except that interest (i) computed by reference to the
Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of
365 days (or 366 days in a leap year) and (ii) for Borrowings denominated in Pounds Sterling shall be computed on the basis of
a year of 365 days, and in each case shall be payable for the actual number of days elapsed (including the first day but excluding
the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent,
and such determination shall be conclusive absent demonstrable error.

 

(e)            By
entering into this Agreement, the parties have assumed in bona fide that the interest payable hereunder is not and will not
become subject to any deduction or withholding of Taxes for Swiss Withholding Tax. Nevertheless, if a deduction or
withholding of Taxes for Swiss

 

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 (i) if such Borrowing shall be requested in Dollars (other than Designated Loans), then such
Borrowing shall be made as an ABR Borrowing at the Alternate Base Rate (disregarding clause (c) of the definition thereof)
and (ii) if such Borrowing shall be requested in any Foreign Currency or if such Borrowing is a Designated Loan, the LIBO
Rate shall be equal to the rate determined by the Administrative Agent in its sole reasonable discretion and consented to in
writing by the Company and the Required Lenders (the “Alternative Rate”), provided, however, that until
such time as the Alternative Rate shall be determined and so consented to by the Company and the Required Revolving Lenders,
Borrowings shall not be available in such Foreign Currency or as a Designated Loan, as the case may be. It is hereby
understood and agreed that, notwithstanding anything to the foregoing set forth in this Section 2.14(a), if at any time the
conditions set forth in Section 2.14(c)(i) or (ii) are in effect, the provisions of this Section 2.14(a) shall no longer
be applicable for any purpose of determining any alternative rate of interest under this Agreement and Section 2.14(c) shall
instead be applicable for all purposes of determining any alternative rate of interest under this Agreement.

 

(b)            If prior
to the commencement of any Interest Period for a Eurocurrency Borrowing:

 

(i)       the
Administrative Agent determines (which determination shall be conclusive and binding absent demonstrable error) that adequate and
reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable (including, without limitation,
because the LIBOR Screen Rate is not available or published on a current basis), for a Loan in the applicable currency or for the
applicable Interest Period; or

 

(ii)       the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for a Loan
in the applicable currency or for the applicable Interest Period will not adequately and fairly reflect the cost to such Lenders
of making or maintaining their Loans included in such Borrowing for the applicable currency and such Interest Period;

 

then the Administrative Agent shall give notice (in reasonable
detail) thereof to the applicable Borrower and the Lenders of the applicable
Class prior to the commencement of such Interest Period by telephone, telecopy or e-mail in accordance with Section
9.01 as promptly as practicable thereafter and, until the Administrative Agent notifies the applicable Borrower and the Lenders
of the applicable Class that the circumstances giving rise
to such notice no longer exist (which notice the Administrative Agent hereby agrees to provide promptly after its determination
of such circumstances ceasing to exist), (i) any Interest Election Request that requests the conversion of any Revolving
Borrowing to, or continuation of any Revolving Borrowing as, a Eurocurrency Borrowing
in the applicable currency or for the applicable Interest Period, as the case may be, shall be ineffective, (ii) if any Borrowing
Request requests a Eurocurrency Revolving Borrowing in Dollars (other than a Designated
Loan), such Borrowing shall be made as an ABR Borrowing, and (iii) if any Borrowing Request requests a Eurocurrency Borrowing in
a Foreign Currency or a Designated Loan, then the LIBO Rate for such Eurocurrency Borrowing shall be the Alternative Rate; provided
that if the circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall
be permitted.

 

(c)       Notwithstanding
the foregoing, if at any time the Administrative Agent determines (which determination shall be conclusive absent demonstrable
error) that (i) the circumstances set forth in Section 2.14(b)(i) have arisen and such circumstances are unlikely to be temporary
or (ii) the circumstances set forth in Section 2.14(b)(i) have not arisen but the supervisor for the administrator of the LIBOR
Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying
a specific date after which the LIBOR Screen Rate shall no longer be used for determining interest rates for loans, then the Administrative
Agent and the Company shall endeavor to establish an alternate rate of interest to the LIBO Rate that gives due consideration to
the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time,
and shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to
this Agreement

 

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UK Borrower DTTP Filing or file
any other form relating to the HM Revenue & Customs DT Treaty Passport scheme in respect of that Lender’s Commitment(s)
or its participation in any Loan unless the Lender otherwise agrees.

 

(ix)       Each
Lender which becomes a Party after the date of this Agreement (a “New Lender”) shall indicate in the relevant
Assignment and Assumption, Increasing Lender Supplement or Augmenting Lender Supplement (as applicable) which it executes on becoming
a Party, and for the benefit of the Administrative Agent and without liability to any Loan Party, which of the following categories
it falls in: (i) not a UK Qualifying Lender; (ii) a UK Qualifying Lender (other than a UK Treaty Lender); or (iii) a UK Treaty
Lender, and if the New Lender fails to indicate its status in accordance with this Section 2.17(m)(ix) then such New Lender
shall be treated for the purposes of this Agreement (including by each Loan Party) as if it is not a UK Qualifying Lender until
such time as it notifies the Administrative Agent which category applies (and the Administrative Agent, upon receipt of such notification,
shall inform the relevant UK Borrower). For the avoidance of doubt, an Assignment and Assumption, Increasing Lender Supplement
or Augmenting Lender Supplement shall not be invalidated by any failure of a Lender to comply with this Section 2.17(m)(ix).

 

(x)       Each
UK Borrower shall pay and, within three (3) Business Days of demand, indemnify each Recipient against any cost, loss or liability
that Recipient incurs in relation to all United Kingdom stamp duty, registration and other similar Taxes payable in respect of
any Loan Document.

 

(n)       VAT.

 

(i)       All
amounts set out or expressed in a Loan Document to be payable by any Party to any Recipient which (in whole or in part) constitute
the consideration for any supply or supplies for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on
such supply or supplies, and accordingly, subject to Section 2.17(n)(ii) below, if VAT is or becomes chargeable on any supply
made by any Recipient to any Party under a Loan Document and such Recipient is required to account to the relevant tax authority
for the VAT, that Party shall pay to such Recipient, as applicable, (in addition
to and at the same time as paying any other consideration for such supply),
an amount equal to the amount of such VAT (and such Recipient, as applicable, shall promptly provide an appropriate VAT invoice
to such Party). or,
where applicable, directly account for such VAT at the appropriate rate under the reverse charge procedure provided for by article
44 of Council Directive 2006/112/EC, as amended, and any relevant VAT provision of the jurisdiction in which such Party receives
such supply.

 

(ii)       If
VAT is or becomes chargeable on any supply made by any Recipient (the “Supplier”) to any other Recipient (the
“VAT Recipient”) under a Loan Document, and any Party other than the VAT Recipient (the “Subject Party”)
is required by the terms of any Loan Document to pay an amount equal to the consideration for such supply to the Supplier (rather
than being required to reimburse the VAT Recipient in respect of that consideration):

 

(A)       where
the Supplier is the person required to account to the relevant tax authority for the VAT, the Subject Party shall also pay to the
Supplier (in addition to and at the same time as paying such amount) an amount equal to the amount of such VAT. The VAT Recipient
will, where this Section 2.17(n)(ii)(A) applies, promptly pay to the Subject Party an amount equal to any credit or repayment
obtained by the VAT Recipient from the relevant tax authority which the VAT Recipient reasonably determines relates to the VAT
chargeable on that supply; and

 

(B)       where
the VAT Recipient is the person required to account to the relevant tax authority for the VAT, the Subject Party shall promptly,
following demand from the VAT Recipient, pay to the VAT Recipient an amount equal to the VAT chargeable on that supply but only
to the extent that the VAT Recipient

 

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extended to the next succeeding Business
Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. Notwithstanding
the foregoing provisions of this Section, if, after the making of any Credit Event in any Foreign Currency, currency control or
exchange regulations are imposed in the country which issues such currency with the result that the type of currency in which the
Credit Event was made (the “Original Currency”) no longer exists or any Borrower is not able to make payment
to the Administrative Agent for the account of the Lenders in such Original Currency, then all payments to be made by such Borrower
hereunder in such currency shall instead be made when due in Dollars in an amount equal to the Dollar Amount (as of the date of
repayment) of such payment due, it being the intention of the parties hereto that the Borrowers take all risks of the imposition
of any such currency control or exchange regulations.

 

(b)       If
at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of
interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and
fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due
to such parties.

 

(c)       If
any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of
or interest on any of its Revolving Loans or participations in LC Disbursements
or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving
Loans and participations in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion
received by any other similarly situated Lender, then the
Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving
Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that
the benefit of all such payments shall be shared by theall
such Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective
Revolving Loans and participations in LC Disbursements and Swingline Loans; provided
that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such
participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment made by any Borrower pursuant to and in accordance
with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of
a participation in any of its Loans or participations in LC Disbursements and Swingline Loans to any assignee or participant, other
than to the Company or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). Each Borrower
consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against such Borrower rights of set-off and counterclaim with
respect to such participation as fully as if such Lender were a direct creditor of such Borrower in the amount of such participation.

 

(d)       Unless
the Administrative Agent shall have received notice from the relevant Borrower prior to the date on which any payment is due to
the Administrative Agent for the account of the applicable
Lenders or an Issuing Bank hereunder that such Borrower will not make such payment, the Administrative Agent may assume that such
Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the
applicable Lenders or such Issuing Bank, as the case may
be, the amount due. In such event, if such Borrower has not in fact made such payment, then each of the applicable
Lenders or such Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the
amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount
is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the NYFRB Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on interbank compensation (including without limitation
the Overnight Foreign Currency Rate in the case of Loans denominated in a Foreign Currency).

 

 

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(e)       If
any Lender shall fail to make any payment required to be made by it pursuant to Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(d)
or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i) apply any
amounts thereafter received by the Administrative Agent for the account of such Lender and for the benefit of the Administrative
Agent, the Swingline Lenders or the Issuing Banks to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid and/or (ii) hold any such amounts in a segregated account over which the Administrative
Agent shall have exclusive control as cash collateral for, and application to, any future funding obligations of such Lender under
any such Section; in the case of each of clauses (i) and (ii) above, in any order as determined by the Administrative Agent in
its discretion; it being understood that the Administrative Agent shall, to the extent permitted by law, apply any cash collateral
to such obligations when due.

 

SECTION 2.19 Mitigation
Obligations; Replacement of Lenders. (a) If any Lender requests compensation under Section 2.15, or if any Borrower
is required to pay any Indemnified Taxes or additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.13(e) or Section 2.17 (other than amounts in respect of Other Taxes or VAT), then such
Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign
its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.13(e), 2.15 or 2.17,
as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise
be materially disadvantageous to such Lender. The Company hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

 

(b)       If
(i) any Lender (or any of its Participants) requests compensation under Section 2.15, (ii) any Borrower is required to pay
any Indemnified Taxes or additional amount to any Lender (or any of its Participants) or any Governmental Authority for the account
of any Lender (or any of its Participants) pursuant to Section 2.13(e) or Section 2.17, (iii) any Lender (w) has
become the subject of a Bail-In Action (or any case or other proceeding in which a Bail-In Action may occur), (x) is or becomes
a Defaulting Lender, a Disqualified Institution or a Swiss Non-Qualifying Lender (but only if such cessation will otherwise cause
a breach of the Swiss Ten Non-Bank Rule or the Swiss Twenty Non-Bank Rule) or (y) rejects the designation of an Agreed Currency
or of a Foreign Subsidiary as an Eligible Subsidiary if, in each case, such Agreed Currency or designation of a Foreign Subsidiary
as an Eligible Subsidiary has otherwise been approved by the Required Revolving
Lenders, (iv) any Lender shall determine that any law, regulation or treaty or directive, or any change therein or in the interpretation
or application thereof, shall make it unlawful for such Lender to make or maintain any Eurocurrency Loans as contemplated by this
Agreement or (v) any Lender shall enter into, or purport to enter into, any assignment or participation with a Disqualified Institution
in violation of this Agreement, then the Company may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained
in Section 9.04), all its interests, rights (other than its existing rights to payments pursuant to Section 2.15 or 2.17) and obligations
under the Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts
such assignment); provided that (i) such Lender is reasonably acceptable to the Administrative Agent and (ii) such Lender
shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements
and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the Company (in the case of all other amounts). Each
party hereto agrees that (1) an assignment required pursuant to this paragraph may be effected pursuant to an Assignment and Assumption
executed by the Company, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an
Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such
parties are participants), and (2) the Lender required to make such assignment need not be a party thereto in order for such assignment
to be effective and shall be deemed to have consented to and be bound by the terms thereof; provided that, following the
effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary
to evidence such assignment as reasonably requested by the applicable Lender, provided that any such documents shall be without
recourse to or warranty by the parties thereto.

 

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SECTION 2.20 Expansion
Option. The Company may from time to time elect to increase the Revolving
Commitments or enter into one or more tranches of term loans (each an “Incremental Term Loan”), in each case
in a minimum amount of $25,000,000 and minimum increments of $1,000,000 in excess thereof, so long as, after giving effect thereto,
the aggregate amount of such increases and all such Incremental Term Loans after
the Amendment No. 1 Effective Date does not exceed $300,000,000. The Company may arrange for any such increase or tranche
to be provided by one or more Lenders (each Lender so agreeing to an increase in its Revolving
Commitment, or to participate in such Incremental Term Loans, an “Increasing Lender”), or by one or more new
banks, financial institutions or other entities (each such new bank, financial institution or other entity, an “Augmenting
Lender”; provided that no Ineligible Institution may be an Augmenting Lender), which agree to increase their existing
Revolving Commitments, or to participate in such Incremental
Term Loans, or provide new Revolving Commitments, as the
case may be; provided that (i) each Augmenting Lender shall be subject to the approval of the Company, the Administrative
Agent, and in the case of an increase in the Revolving Commitments,
each Issuing Bank and Swingline Lender (each such consent, not to be unreasonably withheld, conditioned or delayed) and (ii) (x)
in the case of an Increasing Lender, the Company and such Increasing Lender execute an agreement substantially in the form of Exhibit
C-1 hereto, and (y) in the case of an Augmenting Lender, the Company and such Augmenting Lender execute an agreement substantially
in the form of Exhibit C-2 hereto. No consent of any Lender (other than the Lenders participating in the increase or any
Incremental Term Loan) shall be required for any increase in Revolving
Commitments or Incremental Term Loan pursuant to this Section 2.20. Increases and new Revolving
Commitments and Incremental Term Loans created pursuant to this Section 2.20 shall become effective on the date agreed by the Company,
the Administrative Agent and the relevant Increasing Lenders or Augmenting Lenders, and the Administrative Agent shall notify each
Lender thereof. Notwithstanding the foregoing, no increase in the Revolving
Commitments (or in the Revolving Commitment of
any Lender) or tranche of Incremental Term Loans shall become effective under this paragraph unless, (i) on the proposed date of
the effectiveness of such increase or Incremental Term Loans, (A) the conditions set forth in paragraphs (a) and (b) of Section
4.02 shall be satisfied or waived by the Required Lenders and the Administrative Agent shall have received a certificate to
that effect dated such date and executed by a Financial Officer of the Company and (B) the Company shall be in compliance (on a
pro forma basis) with the covenants contained in Sections 6.01 and 6.02 and (ii) the Administrative Agent shall have
received documents and opinions consistent with those delivered on the Effective Date as to the organizational power and authority
of the Borrowers to borrow hereunder after giving effect to such increase or Incremental Term Loans, as the case may be. On the
effective date of any increase in the Revolving Commitments
or any Incremental Term Loans being made, (i) each relevant Increasing Lender and Augmenting Lender shall make available to the
Administrative Agent such amounts in immediately available funds as the Administrative Agent shall determine, for the benefit of
the other Lenders, as being required in order to cause, after giving effect to such increase and the use of such amounts to make
payments to such other Lenders, each Lender’s portion of the outstanding Revolving Loans of all the Lenders to equal its
Applicable Percentage of such outstanding Revolving Loans, and (ii) the Borrowers shall be deemed to have repaid and reborrowed
all outstanding Revolving Loans as of the date of any increase in the Revolving
Commitments (with such reborrowing to consist of the Types of Revolving Loans, with related Interest Periods if applicable, specified
in a notice delivered by the applicable Borrower, or the Company on behalf of the applicable Borrower, in accordance with the requirements
of Section 2.03). The deemed payments made pursuant to clause (ii) of the immediately preceding sentence shall be accompanied by
payment of all accrued interest on the amount prepaid and, in respect of each Eurocurrency Loan, shall be subject to indemnification
by the Borrowers pursuant to the provisions of Section 2.16 if the deemed payment occurs other than on the last day of the related
Interest Periods. The Incremental Term Loans (a) shall rank pari passu in right of payment with the Revolving Loans and
the initial Term Loans, (b) shall not mature earlier than the latest
Maturity Date in effect on the date of incurrence of such Incremental
Term Loans (but may have amortization prior to such date) and (c) shall be treated substantially the same as (and in
any event no more favorably than) the Revolving Loans and the initial
Term Loans; provided that (i) the terms and conditions applicable to any tranche of Incremental Term Loans maturing
after the latest Maturity Date mayin
effect on the date of incurrence of such Incremental Term Loans may provide for material additional or different financial
or other covenants or prepayment requirements applicable only during periods after the latest
Maturity Date in effect on the date of incurrence of such Incremental
Term Loans and (ii) the Incremental Term Loans may be priced differently than the Revolving Loans
and the initial Term Loans. Incremental Term Loans may be made hereunder pursuant to an amendment or restatement (an
“Incremental Term Loan Amendment”) of this Agreement and, as appropriate, the other Loan Documents, executed
by the Borrowers, each Increasing Lender participating in such tranche, each Augmenting Lender participating in such tranche, if
any, and the Administrative Agent. The Incremental Term Loan Amendment may, without the consent of any other Lenders, effect such
amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the
Administrative Agent, to effect the provisions of this Section 2.20. Nothing contained in this Section 2.20 shall constitute, or
otherwise be deemed to be, a commitment on the part of any Lender to increase its Revolving
Commitment hereunder, or provide Incremental Term Loans, at any time.

 

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SECTION 2.21 Market
Disruption. Notwithstanding the satisfaction of all conditions referred to in Article II and Article IV with
respect to any Credit Event to be effected in any Foreign Currency, if (i) there shall occur on or prior to the date of such Credit
Event any change in national or international financial, political or economic conditions or currency exchange rates or exchange
controls which would in the reasonable opinion of the Administrative Agent, the relevant Issuing Bank (if such Credit Event is
a Letter of Credit) or the Required Revolving Lenders make
it impracticable for the Eurocurrency Borrowings or Letters of Credit comprising such Credit Event to be denominated in the Agreed
Currency specified by the applicable Borrower or (ii) a Dollar Amount of such currency is not readily calculable, then the Administrative
Agent shall forthwith give notice thereof to such Borrower, the Lenders and, if such Credit Event is a Letter of Credit, the relevant
Issuing Bank, and such Credit Events shall not be denominated in such Agreed Currency but shall, except as otherwise set forth
in Section 2.07, be made on the date of such Credit Event in Dollars, (a) if such Credit Event is a Borrowing, in an aggregate
principal amount equal to the Dollar Amount of the aggregate principal amount specified in the related request for a Credit Event
or Interest Election Request, as the case may be, as ABR Loans, unless such Borrower notifies the Administrative Agent prior to
the occurrence of such Credit Event that (i) it elects not to borrow on such date or (ii) it elects to borrow on such date in a
different Agreed Currency, as the case may be, in which the denomination of such Loans would in the reasonable opinion of the Administrative
Agent and the Required Revolving Lenders be practicable and
in an aggregate principal amount equal to the Dollar Amount of the aggregate principal amount specified in the related request
for a Credit Event or Interest Election Request, as the case may be or (b) if such Credit Event is a Letter of Credit, in a face
amount equal to the Dollar Amount of the face amount specified in the related request or application for such Letter of Credit,
unless such Borrower notifies the Administrative Agent prior to the occurrence of such Credit Event that (i) it elects not to request
the issuance of such Letter of Credit on such date or (ii) it elects to have such Letter of Credit issued on such date in a different
Agreed Currency, as the case may be, in which the denomination of such Letter of Credit would in the reasonable opinion of the
Issuing Bank which has issued such Letter of Credit, the Administrative Agent and the Required Revolving
Lenders be practicable and in face amount equal to the Dollar Amount of the face amount specified in the related request or application
for such Letter of Credit, as the case may be.

 

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SECTION 2.22 Judgment
Currency. If for the purposes of obtaining judgment in any court it is necessary to convert a sum due from any Borrower hereunder
in the currency expressed to be payable herein (the “specified currency”) into another currency, the parties
hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance
with normal banking procedures the Administrative Agent could purchase the specified currency with such other currency at the Administrative
Agent’s main New York City office on the Business Day preceding that on which final, non-appealable judgment is given. The
obligations of each Borrower in respect of any sum due to any Lender or the Administrative Agent hereunder shall, notwithstanding
any judgment in a currency other than the specified currency, be discharged only to the extent that on the Business Day following
receipt by such Lender or the Administrative Agent (as the case may be) of any sum adjudged to be so due in such other currency
such Lender or the Administrative Agent (as the case may be) may in accordance with normal, reasonable banking procedures purchase
the specified currency with such other currency. If the amount of the specified currency so purchased is less than the sum originally
due to such Lender or the Administrative Agent, as the case may be, in the specified currency, each Borrower agrees, to the fullest
extent that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to indemnify such Lender
or the Administrative Agent, as the case may be, against such loss, and if the amount of the specified currency so purchased exceeds
(a) the sum originally due to any Lender or the Administrative Agent, as the case may be, in the specified currency and (b) any
amounts shared with other Lenders as a result of allocations of such excess as a disproportionate payment to such Lender under
Section 2.18, such Lender or the Administrative Agent, as the case may be, agrees to remit such excess to such Borrower.

 

SECTION 2.23 Designation
of Affiliate Borrowers. On the Effective Date, and subject to the satisfaction of the applicable conditions in Article IV
hereto, the Initial Affiliate Borrower shall be an Affiliate Borrower hereunder until the Company shall have executed and delivered
to the Administrative Agent an Affiliate Borrowing Termination with respect to the Initial Affiliate Borrower and complied with
the terms and conditions of Section 5.10, whereupon the Initial Affiliate Borrower shall cease to be an Affiliate Borrower
hereunder. After the Effective Date, the Company may at any time and from time to time designate any Eligible Subsidiary as an
Affiliate Borrower by delivery to the Administrative Agent of an Affiliate Borrowing Agreement executed by such Subsidiary and
the Company and the satisfaction of the other conditions precedent set forth in Section 4.03, and upon such delivery and
satisfaction such Subsidiary shall for all purposes of this Agreement be an Affiliate Borrower and a party to this Agreement until
the Company shall have executed and delivered to the Administrative Agent an Affiliate Borrowing Termination with respect to such
Subsidiary, whereupon such Subsidiary shall cease to be an Affiliate Borrower and a party to this Agreement. Notwithstanding the
preceding sentence, no Affiliate Borrowing Termination will become effective as to any Affiliate Borrower at a time when any principal
of or interest on any Loan to such Borrower shall be outstanding hereunder, provided that such Affiliate Borrowing Termination
shall be effective to terminate the right of such Affiliate Borrower to make further Borrowings under this Agreement. As soon as
practicable upon receipt of an Affiliate Borrowing Agreement, the Administrative Agent shall furnish a copy thereof to each Revolving
Lender.

 

SECTION 2.24 Defaulting
Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the
following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

(a)       fees
shall cease to accrue on the Commitment of such Defaulting Lender pursuant to Section 2.12(a);

 

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(b)       any
payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender
(whether voluntary or mandatory, at maturity or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant
to Section 9.08 shall be applied at such time or times as may be reasonably determined by the Administrative Agent as follows:
first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent (but as promptly as commercially
practicable) hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any
Issuing Bank or Swingline Lender hereunder; third, to Cash Collateralize the Issuing Banks’ LC Exposure with respect
to such Defaulting Lender in accordance with this Section; fourth, as the Company may request (so long as no Default or
Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion
thereof as required by this Agreement, as reasonably determined by the Administrative Agent; fifth, if so determined by
the Administrative Agent and the Company, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting
Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the Issuing
Banks’ future LC Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this
Agreement, in accordance with this Section; sixth, to the payment of any amounts owing to the Revolving
Lenders, the Issuing Banks or Swingline Lenders as a result of any judgment of a court of competent jurisdiction obtained by any
Revolving Lender, the Issuing Banks or Swingline Lenders
against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or
under any other Loan Document; seventh, so long as no Default or Event of Default exists, to the payment of any amounts
owing to the any Borrower as a result of any judgment of a court of competent jurisdiction obtained by such Borrower against such
Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other
Loan Document; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided
that if (x) such payment is a payment of the principal amount of any Loans or LC Disbursements in respect of which such Defaulting
Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at
a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely to pay
the Loans of, and LC Disbursements owed to, all non-Defaulting Revolving
Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or LC Disbursements owed to, such Defaulting
Lender until such time as all Loans and funded and unfunded participations in the Borrowers’ obligations corresponding to
such Defaulting Lender’s LC Exposure and Swingline Loans are held by the Revolving
Lenders pro rata in accordance with the Commitments without giving effect to clause (d) below. Any payments, prepayments or other
amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post
cash collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender, and each Revolving
Lender irrevocably consents hereto;

 

(c)       the
Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether the Required Lenders,
the Required Revolving Lenders or the Required Term Lenders have taken or may take any action hereunder (including any
consent to any amendment, waiver or other modification pursuant to Section 9.02); provided, that, except as otherwise
provided in Section 9.02, this clause (c) shall not apply to the vote of a Defaulting Lender in the case of an amendment,
waiver or other modification requiring the consent of such Lender or each Lender directly affected thereby;

 

(d)       if
any Swingline Exposure or LC Exposure exists at the time such Lender becomes a Defaulting Lender then:

 

(i)       all
or any part of the Swingline Exposure and LC Exposure of such Defaulting Lender (other than the portion of such Swingline Exposure
referred to in clause (b) of the definition of such term) shall be reallocated among the non-Defaulting Lenders in accordance with
their respective Applicable Percentages but only to the extent the sum of all non-Defaulting Lenders’ Revolving Credit Exposures
plus such Defaulting Lender’s Swingline Exposure and LC Exposure does not exceed the total of all non-Defaulting Lenders’
Revolving Commitments;

 

(ii)       if
the reallocation described in clause (i) above cannot, or can only partially, be effected, the Company shall within one (1) Business
Day following notice by the Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, Cash Collateralize
for the benefit of the Issuing Banks only the Borrowers’ obligations corresponding to such Defaulting Lender’s LC Exposure
(after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section
2.06(j) for so long as such LC Exposure is outstanding;

 

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(iii)       if
the Company Cash Collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to clause (ii) above, the Borrowers
shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting
Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is Cash Collateralized;

 

(iv)       if
the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the fees payable to the Lenders
pursuant to Section 2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages;
and

 

(v)       if
all or any portion of such Defaulting Lender’s LC Exposure is neither reallocated nor Cash Collateralized pursuant to clause
(i) or (ii) above, then, without prejudice to any rights or remedies of any Issuing Bank or any other Lender hereunder, all facility
fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such Defaulting Lender’s
Commitment that was utilized by such LC Exposure) and letter of credit fees payable under Section 2.12(b) with respect to such
Defaulting Lender’s LC Exposure shall be payable to the Issuing Banks until and to the extent that such LC Exposure is reallocated
and/or Cash Collateralized; and

 

(e)       so
long as such Lender is a Defaulting Lender, the Swingline Lenders shall not be required to fund any Swingline Loan and the Issuing
Banks shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure
and the Defaulting Lender’s then outstanding LC Exposure will be 100% covered by the Revolving
Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Company in accordance with
Section 2.24(d), and participating interests in any such newly made Swingline Loan or any newly issued or increased Letter of Credit
shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.24(d)(i) (and such Defaulting Lender shall
not participate therein).

 

If (i) a Bankruptcy
Event or a Bail-In Action with respect to a Lender Parent shall occur following the date hereof and for so long as such event shall
continue or (ii) any Swingline Lender or any Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its
obligations under one or more other agreements in which such Lender commits to extend credit, no Swingline Lender shall be required
to fund any Swingline Loan and no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless the Swingline
Lenders or the Issuing Banks, as the case may be, shall have entered into arrangements with the Company or such Lender, satisfactory
to each Swingline Lender or the Issuing Banks, as the case may be, to defease any risk to it in respect of such Lender hereunder.

 

In the event that the
Administrative Agent, the Company, each Swingline Lender and each Issuing Bank each agrees that a Defaulting Lender has adequately
remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders
shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par
such of the Loans of the other Lenders (other than Swingline Loans) as the Administrative Agent shall determine may be necessary
in order for such Lender to hold such Loans in accordance with its Applicable Percentage.

 

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SECTION 2.25 Extension of
Maturity Date.

 

(a)       Requests
for Extension. The Company may, by notice to the Administrative Agent (who shall promptly notify the applicable
Class of Lenders) during the Extension Availability Period, request that each applicable
Lender extend such Lender’s Revolving Credit Maturity
Date or Term Loan Maturity Date, as the case may be (the “Applicable
Maturity Date”), to a date (the “Extended Maturity Date”) that does not cause the tenor of
any Lender’s Revolving Commitment or
any Lender’s outstanding Term Loans to exceed five (5) years from the date upon which the conditions precedent
to the effectiveness of such extension of the Applicable
Maturity Date set forth in clause (f) below have been satisfied (an “Extension Date”). For
the avoidance of doubt, the Company may request extensions of any Class without requesting an extension of the other Class.

 

(b)       Lender
Elections to Extend. Each Lender of the applicable Class,
acting in its sole and individual discretion, shall, by notice to the Administrative Agent (which shall be irrevocable unless the
Company otherwise consents in writing in its sole discretion) given not later than the date that is 15 days after the date on which
the Administrative Agent received the Company’s extension request (the “Lender Notice Date”), advise the
Administrative Agent whether or not such Lender agrees to such extension (each Lender of
the applicable Class that determines to so extend its Applicable
Maturity Date, an “Extending Lender”). Each Lender of
the applicable Class that determines not to so extend its Applicable
Maturity Date (a “Non-Extending Lender”) shall notify the Administrative Agent of such fact promptly
after such determination (but in any event no later than the Lender Notice Date), and any Lender of
the applicable Class that does not so advise the Administrative Agent on or before the Lender Notice Date shall be deemed
to be a Non-Extending Lender. The election of any Lender to agree to such extension shall not obligate any other Lender to so agree,
and it is understood and agreed that no Lender shall have any obligation whatsoever to agree to any request made by the Company
for extension of the Applicable Maturity Date.

 

(c)       Notification
by Administrative Agent. The Administrative Agent shall notify the Company of each applicable
Lender’s determination under this Section promptly after the Administrative Agent’s receipt thereof and, in any event,
no later than the date that is 15 days prior to the applicable Extension Date (or, if such date is not a Business Day, on the next
preceding Business Day).

 

(d)       Additional
Commitment Lenders. The Company shall have the right, but shall not be obligated, on or before the applicableApplicable
Maturity Date for any Non-Extending Lender to replace such Non-Extending Lender with, and add as a
“Lenders”Revolving
Lender” (in the case of any extension of the Revolving Credit Maturity Date) or as a “Term Lender” (in the case
of any extension of the Term Loan Maturity Date) under this Agreement in place thereof, one or more financial institutions
that are not Ineligible Institutions (each, an “Additional Commitment Lender”) approved by the Administrative
Agent and, in the case of an Additional Commitment Lender assuming a new or additional Revolving Commitment, the Issuing
Banks, the Swingline Lenders and Administrative Agent (in each case,
such approval not to be unreasonably withheld, conditioned or delayed) in accordance with the procedures provided in Section
2.19(b), each of which applicable Additional Commitment
Lenders shall have entered into an Assignment and Assumption (in accordance with and subject to the restrictions contained in Section
9.04, with the Company or replacement Lender obligated to pay any applicable processing or recordation fee) with such Non-Extending
Lender, pursuant to which such Additional Commitment Lenders shall, effective on or before the applicableApplicable
Maturity Date for such Non-Extending Lender, assume a Revolving
Commitment and/or Term Loans, as the case may be (and, if
any such Additional Commitment Lender is already a Lender of the applicable
Class, its Revolving Commitment and/or
its outstanding Term Loans, as applicable, so assumed shall be in addition to such Lender’s Revolving
Commitment and/or its outstanding Term Loans, as applicable,
hereunder on such date). Prior to any Non-Extending Lender being replaced by one or more Additional Commitment Lenders pursuant
hereto, such Non-Extending Lender may elect, in its sole discretion, by giving irrevocable notice thereof to the Administrative
Agent and the Company (which notice shall set forth such Lender’s new Applicable
Maturity Date), to become an Extending Lender, provided that the Company consents thereto in writing in its sole discretion.
The Administrative Agent may effect such amendments to this Agreement as are reasonably necessary to provide for any such extensions
with the consent of the Company but without the consent of any other Lenders.

 

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(e)       Minimum
Extension Requirement. If (and only if) the total of the applicable
Revolving Commitments or the applicable outstanding Term
Loans of the Lenders of the applicable Class that
have agreed to extend their Applicable Maturity Date and
the new or increased Revolving Commitments or
the applicable newly assumed outstanding Term Loans of any Additional Commitment Lenders is more than 50% of the aggregate
amount of the Revolving Commitments or
the applicable outstanding Term Loans, as applicable, in effect immediately prior to the applicable Extension Date,
then, effective as of the applicable Extension Date, the Applicable
Maturity Date of each Extending Lender and of each Additional Commitment Lender of
the applicable Class shall be extended to the Extended Maturity Date (except that, if such date is not a Business Day,
such Applicable Maturity Date as so extended shall be the
next preceding Business Day) and each Additional Commitment Lender of
such Class shall thereupon become a “Revolving
Lender”, and/or a “Term Lender”, as the case may be,
for all purposes of this Agreement and shall be bound by the provisions of this Agreement as a LenderRevolving
Lender and/or Term Lender, as the case may be, hereunder and shall have the obligations of a LenderRevolving
Lender and/or a Term Lender, as the case may be, hereunder.

 

(f)       Conditions
to Effectiveness of Extension. Notwithstanding the foregoing, (x) no more than two (2) extensions of the Revolving
Credit Maturity Date and no more than two (2) extensions of the Term Loan Maturity Date shall be permitted hereunder
and (y) any extension of any Maturity Date pursuant to this Section 2.25 shall not be effective with respect to any Extending
Lender and each Additional Commitment Lender unless:

 

(i) no Default
or Event of Default shall have occurred and be continuing on the applicable Extension Date and immediately after giving effect
thereto;

 

(ii) the
representations and warranties of the Borrowers set forth in this Agreement (other than the representations contained in Sections
3.04(c) and 3.05) shall be true and correct in all material respects (provided that any representation or warranty that
is qualified by materiality or Material Adverse Effect shall be true and correct in all respects) on and as of the applicable Extension
Date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific
date); and

 

(iii) the
Administrative Agent shall have received a certificate from the Company signed by a Financial Officer of the Company (A) certifying
the accuracy of the foregoing clauses (i) and (ii) and (B) certifying and attaching the resolutions adopted by each Borrower approving
or consenting to such extension.

 

(g)       Maturity
Date for Non-Extending Lenders. On the Applicable Maturity
Date of each Non-Extending Lender, (i) to the extent
of the Revolving Commitments and Term Loans of each Non-Extending Lender of the relevant Class not assigned to the Additional Commitment
Lenders of such Class, the Revolving Commitment of each Non-Extending Lender of
such Class shall automatically terminate and (ii) the Company shall repay such Non-Extending Lender of
such Class in accordance with Section 2.10 (and shall pay to such Non-Extending Lender all of the other Obligations
due and owing to it under this Agreement) and after giving effect thereto shall prepay any Revolving
Loans of the applicable Class outstanding on such date (and
pay any additional amounts required pursuant to Section 2.16) to the extent necessary to keep outstanding Revolving
Loans of the applicable Class ratable with any revised Applicable
Percentages of the respective Lenders of such Class effective
as of such date, and the Administrative Agent shall administer any necessary reallocation of the Revolvingapplicable
Credit Exposures (without regard to any minimum borrowing, pro rata borrowing and/or pro rata payment requirements contained elsewhere
in this Agreement).

 

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SECTION 3.11 Disclosure.
No written report, financial statement, certificate or other written information furnished by or on behalf of any Loan Party to
the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement
or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished)
contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading when taken as a whole; provided that, with respect to projected
financial information, such Loan Party represents only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time (it being understood and agreed that projected financial information is simply an estimate,
and there is no guarantee that projected results will in fact be achieved). As
of the Amendment No. 1 Effective Date, to the best knowledge of the Company, the information included in the Beneficial Ownership
Certification provided on or prior to the Amendment No. 1 Effective Date to any Lender in connection with this Agreement is true
and correct in all material respects.

 

SECTION 3.12 Anti-Corruption
Laws and Sanctions.

 

(a)           Each
of the Parent and its Subsidiaries and, to its Knowledge, its controlled affiliated companies and their respective directors, officers,
employees, and agents are conducting their business in compliance in all material respects with Anti-Corruption Laws and have instituted
and maintained policies and procedures designed to promote and achieve compliance with such laws in all material respects.

 

(b)           None
of the Parent or its Subsidiaries or, to its Knowledge, their respective directors, officers, employees or agents acting in any
capacity in connection with, or directly benefiting from, the Credit Events:

 

(i)             is
a Designated Person;

 

(ii)            is
a Person that is owned or controlled by a Designated Person or by a Sanctioned Country;

 

(iii)           is
incorporated, organized or resident in a Sanctioned Country, in violation of Sanctions; or

 

(iv)           is
(or, except as disclosed in writing to the Administrative Agent prior to the Effective Date, has, to the Parent’s Knowledge,
within the year preceding the Effective Date) directly or, to the Parent’s Knowledge, indirectly engaged in, any dealings
or transactions, in each case in violation of any Sanctions, (1) with any Designated Person or (2) in any Sanctioned Country to
the extent that after giving effect to such dealings or transactions the Parent and its Subsidiaries have more than 5% of their
consolidated assets in Sanctioned Countries or derive more than 5% of their consolidated revenues from investments in, or transactions
with, Sanctioned Countries.

 

SECTION 3.13 Domiciliation;
Centre of Main Interests. In the case of a Loan Party organized under the laws of Luxembourg, the head office
(administration centrale) and the place of effective management (siège de direction effective) are
located at the place of its registered office (siège statutaire) in Luxembourg and, for the purposes of the
Insolvency Regulation, the centre of main interests (centre des intérêts principaux) is located at the
place of its registered office (siège statutaire) in Luxembourg. Each UK Loan Party incorporated or organized
in an EU jurisdiction represents and warrants to the Lenders that its centre of main interest (as that term is used in
Article 3(1) of the Insolvency Regulation) is in its jurisdiction of incorporation and it has no establishment (as that term
is used in Article 2(10) of the Insolvency Regulation) in any other jurisdiction. Each UK Loan Party incorporated in England
and Wales and the Irish Guarantor represents and warrants to the Lenders that its centre of main interest (as that term is
used in Article 3(1) of the Insolvency 

 

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Transactions as the Administrative Agent shall reasonably request. The Company hereby
requests each such counsels to deliver such opinions.

 

(c)           The
Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably
request relating to the organization, existence and good standing of the Loan Parties (which shall include, in the case of the
Irish Loan Party, evidence that such Loan Party has complied with Section 82 of the Companies Act 2014 of Ireland), the authorization
of the Transactions and any other legal matters relating to the Parent, the Company, the Initial Affiliate Borrower, the Loan Documents
or the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel and as further described
in the list of closing documents attached as Exhibit E.

 

(d)          The
Administrative Agent shall have received a certificate, dated the Effective Date and signed by a Manager of the Company, certifying
(i) compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02 and (ii) that since December 31,
2017, there has been no material adverse change in the financial condition, operations, business or assets of the Parent, the Company
and its Subsidiaries on a consolidated basis (except as disclosed in the Public Filings).

 

(e)          The
Administrative Agent shall have received evidence satisfactory to it that the credit facility evidenced by the Existing Credit
Agreement has been, or substantially concurrently with the Effective Date will be, terminated and cancelled and any and all indebtedness
thereunder shall have been fully repaid and any and all liens thereunder (if any) have been terminated and released.

 

(f)           The
Administrative Agent shall have received evidence satisfactory to it that all conditions to funding under the credit facility of
nVent Finance S.à r.l., an indirect subsidiary of the Parent to be spun off as part of the Parent’s spinoff of its
electrical business, have been, or substantially concurrently with the Effective Date will be, satisfied.

 

(g)          The
Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including,
to the extent invoiced (in reasonable detail) at least one (1) Business Day prior to the Effective Date, reimbursement or payment
of all out-of-pocket expenses required to be reimbursed or paid by the Company hereunder.

 

The Administrative
Agent shall notify the Company and the Lenders of the Effective Date, and such notice shall be conclusive and binding.

 

SECTION 4.02 Each
Credit Event. The obligation of each Lender to make a Loan, and of the Issuing Banks to issue, increase, renew or extend any
Letter of Credit, is subject to the satisfaction of the following conditions:

 

(a)           the
representations and warranties of the Borrowers set forth in this Agreement (other than the representations contained in Sections
3.04(c) and 3.05) shall be true and correct in all material respects (provided that any representation or warranty
that is qualified by materiality or Material Adverse Effect shall be true and correct in all respects) on and as of the
date of such Loan (or, if any such representation or warranty is expressly stated to have been made as of a specific
date, as of such specific date) or the date of issuance, amendment to increase, renewal or extension of such Letter of Credit,
as applicable.

 

(b)          At
the time of and immediately after giving effect to such Loan or the issuance, amendment to increase, renewal or extension of such
Letter of Credit, as applicable, no Default shall have occurred and be continuing.

 

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Each Loan and each issuance, amendment
to increase, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrowers
on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.

 

SECTION 4.03 Designation
of an Affiliate Borrower. The designation of an Affiliate Borrower pursuant to Section 2.23 is subject to the conditions
precedent that:

 

(a)           The
Company or such proposed Affiliate Borrower shall have furnished or caused to be furnished to the Administrative Agent:

 

(i)            subject
to clauses (d) and (e) below, copies, certified by the Secretary or Assistant Secretary (or other appropriate officer, manager
or director) of such Subsidiary, of its board of directors’ (or other applicable governing body’s) resolutions (and
resolutions of other bodies, if any are deemed necessary by counsel for the Administrative Agent) approving the Affiliate Borrowing
Agreement and any other Loan Documents to which such Subsidiary is becoming a party and such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of such Subsidiary;

 

(ii)           an
incumbency certificate, executed by the Secretary or Assistant Secretary (or other appropriate officer, manager or director) of
such Subsidiary, which shall identify by name and title and bear the signature of the officers or other representatives of such
Subsidiary authorized to request Borrowings hereunder and sign the Affiliate Borrowing Agreement and the other Loan Documents to
which such Subsidiary is becoming a party, upon which certificate the Administrative Agent and the Lenders shall be entitled to
rely until informed of any change in writing by the Company or such Subsidiary;

 

(iii)          opinions
of counsel to such Subsidiary (which may include inside counsel to such Subsidiary for certain matters), in form and substance
reasonably satisfactory to the Administrative Agent and its counsel, with respect to the laws of its jurisdiction of organization
and such other matters as are reasonably requested by counsel to the Administrative Agent and addressed to the Administrative Agent
and the Lenders;

 

(iv)          any
promissory notes requested by any Lender, and any other instruments and documents reasonably requested by the Administrative Agent
or any Lender (including in connection with the Patriot Act); and

 

(v)           any
documentation and other information related to such Subsidiary reasonably requested by the Administrative Agent or any Lender under
applicable “know your customer” or similar rules and regulations, including the Patriot Act and
the Beneficial Ownership Regulation;

 

(b)         The
Administrative Agent shall have received evidence satisfactory to it that all of such Affiliate Borrower’s then existing
credit facilities shall have been cancelled and terminated and all indebtedness thereunder shall have been fully repaid (except
to the extent being so repaid with the initial Revolving Loans to such Borrower or otherwise permitted to be outstanding pursuant
to this Agreement);

 

(c)           In
the event an Affiliate Borrower is organized under the laws of Luxembourg, (i) an excerpt (extrait) issued by the
Luxembourg Trade and Companies Register dated as of the date of its designation and (ii) a non-registration certificate
(certificate de non-inscription d’une décision judiciaire) issued by the Luxembourg Trade 

 

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and the
absence of footnotes) the financial position and results of operations of the Parent and the Consolidated Subsidiaries.

 

(c)           Compliance
Certificates. Simultaneously with the delivery of each set of financial statements referred to in clauses (a) and (b) above,
a certificate of a Senior Financial Officer (i) setting forth in reasonable detail the calculations required to establish whether
the Parent was in compliance with the requirements of Sections 6.01 and 6.02 on the date of such financial statements
and (ii) stating whether there exists on the date of such certificate any Event of Default or Default and, if any such event then
exists, setting forth the details thereof and the action which the Parent is taking or proposes to take with respect thereto.

 

(d)           Notice
of Default. Forthwith upon the occurrence of any Responsible Officer obtaining knowledge of any Event of Default or Default,
a certificate of a Senior Financial Officer setting forth the details thereof and the action which the Parent is taking or proposes
to take with respect thereto.

 

(e)           Shareholder
Information. Promptly upon the mailing thereof to the shareholders of the Parent generally, copies of all financial statements,
reports and proxy statements so mailed.

 

(f)           SEC
Filings. Promptly upon the filing thereof, copies of all registration statements (other than the exhibits thereto and any registration
statements on Form S-8 or its equivalent) and reports on Forms 10-K and 10-Q which the Parent shall have filed with the SEC.

 

(g)          ERISA
Notices. If and when the Parent or ERISA Affiliate or is required to give notice to the PBGC of any “reportable event”
(as defined in Section 4043 of ERISA) with respect to any Plan which could reasonably be expected to constitute grounds for a distress
or PBGC-initiated termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given
or is required to give notice of any such reportable event, a copy of the notice of such reportable event given or required to
be given to the PBGC.

 

(h)          Notice
of Other Material Events. Promptly upon obtaining knowledge thereof, notice of the commencement of any litigation or Governmental
Authority proceeding affecting the Parent or any Subsidiary (including pursuant to any applicable Environmental Law) in which there
is a reasonable possibility of an adverse decision which could reasonably be expected to have a Material Adverse Effect.

 

(i)            Ratings.
Promptly upon the public announcement thereof, notice of any downgrade in any credit rating (including the Public Debt Rating)
with respect to the Company or the Parent by Moody’s, S&P or Fitch.

 

(j)            Beneficial
Ownership Certification Changes. Promptly after the occurrence thereof, notice to the applicable Lender of any change in the information
provided in the Beneficial Ownership Certification delivered to such Lender that would result in a change to the list of beneficial
owners identified in such certification.

 

(k)           (j)
Other Information. From time to timePromptly
following any request therefor, (x) such additional information regarding the financial position or business of the
Loan Parties (including in connection with the Patriot Act) as the Administrative
Agent, at the request of any Lender, may reasonably request. and
(y) information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with
applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act and the
Beneficial Ownership Regulation.

 

Documents
required to be delivered pursuant to Sections 3.04 or 5.01 (to the extent any such documents are included in
materials otherwise filed with the SEC) may be delivered electronically 

 

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satisfied with respect to such Lender’s
entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and
this Agreement; or

 

(iv)         such
other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion,
and such Lender.

 

(b)           In
addition, unless sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has not
provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding
clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y)
covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for
the benefit of, the Administrative Agent, and each Arranger and their respective Affiliates, and not, for the avoidance of doubt,
to or for the benefit of the Company or any other Loan Party, that:

 

(i)            none
of the Administrative Agent, or any Arranger or any of their respective Affiliates is a fiduciary with respect to the assets of
such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement,
any Loan Document or any documents related hereto or thereto);

 

(ii)           the
Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration
of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement is independent (within the meaning of
29 CFR § 2510.3-21, as amended from time to time) and is a bank, an insurance carrier, an investment adviser, a broker-dealer
or other person that holds, or has under management or control, total assets of at least $50,000,000, in each case as described
in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E);

 

(iii)          the
Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration
of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement is capable of evaluating investment
risks independently, both in general and with regard to particular transactions and investment strategies (including in respect
of the obligations);

 

(iv)          the
Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration
of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement is a fiduciary under ERISA or the Code,
or both, with respect to the Loans, the Letters of Credit, the Commitments and this Agreement and is responsible for exercising
independent judgment in evaluating the transactions hereunder; and

 

(v)           no
fee or other compensation is being paid directly to the Administrative Agent, or any Arranger or any their respective Affiliates
for investment advice (as opposed to other services) in connection with the Loans, the Letters of Credit, the Commitments or this
Agreement.

 

(c)          The
Administrative Agent, and each Arranger hereby informs the Lenders that each such Person is not undertaking to provide impartial
investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that
such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may
receive interest or other payments with respect to the Loans, the Letters of Credit, the Commitments and this Agreement, (ii)
may recognize a gain if it extended the Loans, the Letters of Credit or the Commitments for an amount less than the amount being
paid for an interest in the Loans, the Letters of Credit or the Commitments by such Lender or (iii) may receive fees or other
payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including

 

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the Required
Lenders or by the Borrowers and the Administrative Agent with the consent of the Required Lenders; provided that no such
agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal
amount of any Loan or LC Disbursement or reduce the rate of interest thereon (other than waivers or amendments with respect to
the application of a default rate of interest pursuant to Section 2.13(b)), or reduce any fees payable hereunder, without
the written consent of each Lender directly affected thereby (except that neither (A) any amendment or modification of the financial
covenants in this Agreement (or defined terms used in the financial covenants in this Agreement) or (B) any amendment entered
into pursuant to the terms of Section 2.14(c) shall constitute a reduction in the rate of interest or fees for purposes
of this clause (ii)), (iii) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, or
any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of any Commitment, without the written consent of each Lender directly affected thereby (other than
any reduction of the amount of, or any extension of the payment date for, the mandatory prepayments required under Section
2.11, in each case which shall only require the approval of the Required Revolving
Lenders), (iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata sharing of payments
required thereby, without the written consent of each Lender, (v) (x)
waive any condition set forth in Section 4.02 in respect of the making of a Revolving Loan without the written consent of the
Required Revolving Lenders or (y) waive any condition set forth in Section 4.02 in respect of the making of a Term Loan without
the written consent of the Required Term Lenders, (vi) change any of the provisions of this Section or the definition
of “Required Lenders”, “Required Revolving Lenders”
or “Required Term Lenders” or any other provision hereof specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the
written consent of each Lender directly affected thereby (it being understood that, solely with the consent of the parties prescribed
by Section 2.20 to be parties to an Incremental Term Loan Amendment, Incremental Term Loans may be included in the determination
of Required Lenders on substantially the same basis as the Commitments and the Revolving Loans are included on the Effective Date)
or (vivii)
release the Parent or the Swiss Guarantor from its obligations under Article X (other than with respect to any Borrower
ceasing to be a Borrower in accordance with this Agreement) without the written consent of each Lender; provided further
that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, any Issuing Bank
or any Swingline Lender hereunder without the prior written consent of the Administrative Agent, such Issuing Bank or such Swingline
Lender, as the case may be (it being understood that any change to Section 2.24 shall require the consent of the Administrative
Agent, the Issuing Banks and the Swingline Lenders). Notwithstanding the foregoing, (A) no consent with respect to any amendment,
waiver or other modification of this Agreement shall be required of any Defaulting Lender, except with respect to any amendment,
waiver or other modification referred to in clause (i), (ii) or (iii) of the first proviso of this paragraph and then only in
the event such Defaulting Lender shall be directly affected by such amendment, waiver or other modification, and (B) as to any
amendment, amendment and restatement or other modification otherwise approved in accordance with this Section, it shall not be
necessary to obtain the consent or approval of any Lender that, upon giving effect to such amendment, amendment and restatement
or other modification, would have no Commitment or outstanding Loans, so long as such Lender receives payment in full of the principal
of and interest on each Loan made by, and all other amounts owing to, such Lender or accrued for the account of such Lender under
this Agreement and the other Loan Documents at the time such amendment, amendment and restatement or other modification becomes
effective.

 

(c)           If,
in connection with any proposed amendment, waiver or consent requiring the consent of “each Lender” or
“each Lender directly affected thereby,” the consent of the Required Lenders is obtained, but the consent of
other necessary Lenders is not obtained (any such Lender whose consent is necessary but not obtained being referred to herein
as a “Non-Consenting Lender”), then the Company may elect to replace a Non-Consenting Lender as a Lender
party to this Agreement, provided that, concurrently with such replacement, (i) another bank or other entity which is
reasonably satisfactory to the Company and the Administrative Agent shall agree, as of such date, to purchase for cash the
Loans and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and to become a Lender
for all purposes under this Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such
date and to comply with the requirements of clause (b) of Section 9.04, and (ii) each Borrower shall pay to such
Non-Consenting Lender in same day funds on the day of such replacement (1) all interest, fees and other amounts then accrued
but unpaid to such Non-Consenting Lender by such Borrower hereunder to and including the date of termination, including
without limitation payments due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount, if any, equal
to the payment which would have been due to such Lender on the day of such replacement under Section 2.16 had the Loans of
such Non-Consenting Lender been prepaid on such date rather than sold to the replacement Lender. Each party hereto agrees
that (1) an assignment required pursuant to this paragraph may be effected pursuant to an Assignment and Assumption executed
by the Company, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an
Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and
such parties are participants), and (2) the Lender required to make such assignment need not be a party thereto in order for
such assignment to be effective and shall be deemed to have consented to and be bound by the terms thereof; provided
that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver
such documents necessary to evidence such assignment as reasonably requested by the applicable Lender, provided that any such
documents shall be without recourse to or warranty by the parties thereto.

 

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(d)          Notwithstanding
the foregoing, this Agreement and any other Loan Document may be amended (or amended and restated) with the written consent of
the Required Lenders, the Administrative Agent and the Borrowers (x) to add one or more credit facilities (in addition to the Incremental
Term Loans pursuant to an Incremental Term Loan Amendment) to this Agreement and to permit extensions of credit from time to time
outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement
and the other Loan Documents with the Revolving Loans, the initial Term
Loans, Incremental Term Loans and the accrued interest and fees in respect thereof and (y) to include appropriately
the Lenders holding such credit facilities in any determination of the Required Lenders and,
the Required Revolving Lenders, the Required Term Lenders and the Lenders.

 

(e)           If
the Administrative Agent and the Company acting together identify any ambiguity, omission, mistake, typographical error or other
defect in any provision of this Agreement or any other Loan Document, then the Administrative Agent and the Company shall be permitted
to amend, modify or supplement such provision to cure such ambiguity, omission, mistake, typographical error or other defect, and
such amendment shall become effective without any further action or consent of any other party to this Agreement.

 

SECTION 9.03 Expenses;
Indemnity; Damage Waiver. (a) The Company shall pay (i) all reasonable, documented and invoiced out-of-pocket expenses
incurred by the Administrative Agent and JPMCB in its capacity as an Arranger, including the reasonable, documented and
invoiced fees, disbursements and other charges of one primary counsel (and one additional local counsel in each applicable
jurisdiction) for the Administrative Agent, in connection with the syndication and distribution (including, without
limitation, via the internet or through a service such as Intralinks) of the credit facilities provided for herein, the
preparation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby
shall be consummated); provided that, in advance of contacting outside counsel of the Administrative Agent regarding
matters concerning the administration of this Agreement in respect of which the Administrative Agent will expect to be
reimbursed by the Company, the Administrative Agent will notify the Company of its intent to contact such outside counsel,
(ii) all reasonable, documented and invoiced out-of-pocket expenses incurred by any Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all
reasonable, documented and invoiced out-of-pocket expenses incurred by the Administrative Agent or any Lender, including the
reasonable fees, disbursements and other charges of one primary counsel (and one local counsel in each applicable
jurisdiction) for the Administrative Agent, one additional counsel for all the Lenders other than the Administrative Agent
and additional counsel as any Lender reasonably determines are necessary to avoid actual or potential conflicts of
interest or the availability of different claims or defenses, in connection with the enforcement or protection of its rights
in connection with this Agreement and any other Loan Document at any time during a Default, including its rights under this
Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations during an Event of Default in respect of such Loans or
Letters of Credit.

 

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(b)          The
Company shall indemnify the Administrative Agent, each Arranger and each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any
and all losses, claims, damages, liabilities, penalties and related costs and expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, as and when incurred by or asserted against any Indemnitee arising out of, in connection with,
or as a result of (i) the execution or delivery of any Loan Document or any agreement or instrument contemplated thereby, or the
performance by the parties hereto of their respective obligations thereunder or the consummation of the Transactions or any other
transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal
by any Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand
do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials
on or from any property owned or operated by the Company or any of its Subsidiaries, or any Environmental Liability related in
any way to the Company or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the
Company or any of its Subsidiaries and regardless of whether any Indemnitee is a party thereto; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses
are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from (a) the gross negligence
or willful misconduct of such Indemnitee or any of its Related Indemnified Persons, (b) a dispute among the Indemnitees not arising
from an act or omission of the Company or any of its Affiliates (other than a dispute involving a claim against an Indemnitee for
its acts or omissions in its capacity as an arranger, bookrunner, agent or similar role in respect of the credit facilityfacilities
evidenced by this Agreement, except, with respect to this clause (b), to the extent such acts or omissions are determined by a
court of competent jurisdiction by final and non-appealable judgment to have constituted the gross negligence or willful misconduct
of such Indemnitee in such capacity) or (c) such Indemnitee’s or any of its Related Indemnified Persons’ material breach
of the Loan Documents (as determined pursuant to a claim asserted by the Company, whether as a claim, counterclaim or otherwise).
This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages
arising from any non-Tax claim. For purposes of this Section 9.03(b), a “Related Indemnified Person”
of an Indemnitee means (1) any controlled Affiliate of such Indemnitee, (2) the respective directors, managers, officers and employees
of such Indemnitee and of its controlled Affiliates and (3) the respective agents of such Indemnitee and its controlled Affiliates,
in the case of this clause (3), acting at the express instructions of such Indemnitee or such controlled Affiliate; provided
that each reference to a controlled affiliate, director, manager, officer or employee in this sentence pertains to a controlled
affiliate, director, manager, officer or employee involved in the structuring, arrangement, negotiation or syndication of the credit
facilities evidenced by this Agreement and/or the consummation of the transactions contemplated by the Loan Documents.

 

(c)           Each
Lender severally agrees to pay any amount required to be paid by the Company under paragraph (a) or (b) of this Section 9.03
to the Administrative Agent, and each Revolving Lender severally
agrees to pay to each Issuing Bank and each Swingline Lender,
as the case may be, and each Related Party of any of the foregoing Persons (each, an “Agent
Indemnitee”) (to the extent not reimbursed by the Company and without limiting the obligation of the Company to do
so), ratably according to their respective Applicable Percentage in effect on the date on which indemnification is sought
under this Section (or, if indemnification is sought after the date upon which the Revolving
Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with such Applicable
Percentage immediately prior to such date), from and against any and all losses, claims, damages, liabilities and related
expenses, including the fees, charges and disbursements of any kind whatsoever that may at any time (whether before or after
the payment of the Loans) be imposed on, incurred by or asserted against such Agent Indemnitee in any way relating to or
arising out of the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred
to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent
Indemnitee under or in connection with any of the foregoing; provided that no Lender shall be liable for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from
such Agent Indemnitee’s gross negligence or willful misconduct. The agreements in this Section shall survive the
termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

 

    108

     

    

 

(d)          To
the extent permitted by applicable law, the Company shall not assert, and hereby waives, any claim against any Indemnitee, (i)
for any damages arising from the use by others of information or other materials obtained through telecommunications, electronic
or other information transmission systems (including the Internet), other than for direct or actual damages determined by a court
of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct
of such Indemnitee or (ii) on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the Transactions, any Loan, any Letter of Credit or the use of the proceeds
thereof.

 

(e)          All
amounts due under this Section shall be payable not later than 30 days after written demand therefor accompanied by a reasonably
detailed calculation of the amount demanded.

 

SECTION 9.04 Successors
and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby (including any Affiliate of an Issuing Bank that issues any Letter of
Credit), except that (i) no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any attempted assignment or transfer by any Borrower without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.
Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby (including any Affiliate of an Issuing Bank that issues any Letter of Credit),
Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the Issuing Banks and the Lenders) any legal or equitable right, remedy or claim under
or by reason of this Agreement.

  

    109

     

    

 

(b)(i)Subject
to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (other than an Ineligible
Institution) all or a portion of its rights and obligations under this Agreement (including all or a portion of its CommitmentCommitments
and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld, it being understood
that in the case of any assignment that requires the Company’s consent, without limiting any other factors that may be reasonable,
it shall be reasonable for the Company to consider a proposed assignee’s right to require reimbursement for increased costs
when determining whether to consent to such an assignment) of:

 

(A)         the
Company (provided that the Company shall be deemed to have consented to any such assignment unless it shall object thereto by written
notice to the Administrative Agent within ten (10) Business Days after having received notice thereof), provided that no
consent of the Company shall be required (but notice to the Company, either prior to or promptly after such assignment, shall be
required) for an assignment to (1) a Lender, an Affiliate of a Lender or an Approved Fund or (2) if an Event of Default has occurred
and is continuing, any other assignee; and

 

(B)         the
Administrative Agent;

 

(C)         the
Issuing Banks; provided that no consent of the Issuing Banks shall be
required for an assignment of all or any portion of a Term Loan Commitment or a Term Loan; and

 

(D)         the
Swingline Lenders; provided that no consent of the Swingline Lenders
shall be required for an assignment of all or any portion of a Term Loan Commitment or a Term Loan.

 

(ii)           Assignments
shall be subject to the following additional conditions:

 

(A)         except
in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining
amount of the assigning Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans of the assigning
Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment
is delivered to the Administrative Agent) shall not be less than $5,000,000 (in
the case of Revolving Commitments and Revolving Loans) or $1,000,000 (in the case of Term Loans) unless each of the
Company and the Administrative Agent otherwise consent, provided that no such consent of the Company shall be required if
an Event of Default has occurred and is continuing;

 

(B)         each
partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement, provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all
the assigning Lender’s rights and obligations in respect of one Class of Commitments or Loans;

 

(C)         the
parties to each assignment shall execute and deliver to the Administrative Agent (x) an Assignment and Assumption or (y) to the
extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform
as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, together with a processing
and recordation fee of $3,500, such fee to be paid by either the assigning Lender or the assignee Lender or shared between such
Lenders;

 

(D)         the
assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire in which the assignee
designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information
about the Company and its Affiliates and their Related Parties or their respective securities) will be made available and who may
receive such information in accordance with the assignee’s compliance procedures and applicable laws, including Federal and
state securities laws;

 

    110

     

    

 

 

(iii)         the
variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution
Authority.

 

SECTION 9.17 Confirmation of Lender’s
Status as Swiss Qualifying Lender. Each Lender represents and warrants to the Loan Parties that, on the date of this Agreement
(or, if later, the date such Lender becomes a party hereto), unless notified in writing to the Company and the Administrative Agent
prior to the Effective Date (or such later date), it is a Swiss Qualifying Lender and has not entered into a participation arrangement
with respect to this Agreement with any Person that is a Swiss Non-Qualifying Lender. Any Person that shall become a successor,
assign or Participant with respect to any Lender pursuant to this Agreement shall be deemed to have represented and warranted that
it is a Swiss Qualifying Lender and has not entered into a participation arrangement with respect to this Agreement with any Person
that is a Swiss Non-Qualifying Lender or, if not, such Person accounts as one single creditor for purposes of the Swiss Non-Bank
Rules. Each Lender shall promptly notify the Company and the Administrative Agent if for any reason it ceases to be a Swiss Qualifying
Lender and/or it enters into a participation arrangement with respect to this Agreement with any Person that is a Swiss Non-Qualifying
Lender.

 

SECTION
9.18Acknowledgement Regarding Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise,
for Swap Agreements or any other agreement or instrument that is a QFC (such support “QFC Credit Support” and each
such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the
Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”)
in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents
and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or
any other state of the United States):

 

In
the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding
under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any
interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported
QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective
under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and
rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party
or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights
under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against
such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S.
Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state
of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties
with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or
any QFC Credit Support.

 

ARTICLE X.

 

GUARANTEE

 

SECTION 10.01         Guaranty.

 

    120

     

    

 

SCHEDULE 2.01

 

COMMITMENTS

 

	 	 	 	 	 	TERM LOAN	 
	LENDER	 	REVOLVING
    COMMITMENT	 	 	COMMITMENT	 
	JPMORGAN CHASE BANK, N.A.	 	$	94,000,000	 	 	$	0	 
	 	 	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A.	 	$	94,000,000	 	 	$	45,000,000	 
	 	 	 	 	 	 	 	 	 
	MUFG BANK, LTD.	 	$	94,000,000	 	 	$	0	 
	 	 	 	 	 	 	 	 	 
	CITIBANK, N.A.	 	$	94,000,000	 	 	$	0	 
	 	 	 	 	 	 	 	 	 
	U.S. BANK NATIONAL ASSOCIATION	 	$	94,000,000	 	 	$	50,000,000	 
	 	 	 	 	 	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION	 	$	56,000,000	 	 	$	45,000,000	 
	 	 	 	 	 	 	 	 	 
	HSBC BANK USA, NATIONAL ASSOCIATION	 	$	56,000,000	 	 	$	0	 
	 	 	 	 	 	 	 	 	 
	BANCO BILBAO VIZCAYA	 	$	56,000,000	 	 	$	20,000,000	 
	ARGENTARIA, S.A. NEW YORK BRANCH	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	BANK OF MONTREAL, LONDON BRANCH	 	$	56,000,000	 	 	$	0	 
	 	 	 	 	 	 	 	 	 
	INTESA SANPAOLO S.P.A.	 	$	50,000,000	 	 	$	0	 
	 	 	 	 	 	 	 	 	 
	DEUTSCHE BANK AG NEW YORK BRANCH	 	$	39,000,000	 	 	$	0	 
	 	 	 	 	 	 	 	 	 
	BANK OF CHINA, LOS ANGELES BRANCH	 	$	39,000,000	 	 	$	20,000,000	 
	 	 	 	 	 	 	 	 	 
	ING BANK N.V., DUBLIN BRANCH	 	$	39,000,000	 	 	$	0	 
	 	 	 	 	 	 	 	 	 
	PNC BANK, NATIONAL ASSOCIATION	 	$	39,000,000	 	 	$	20,000,000	 
	 	 	 	 	 	 	 	 	 
	AGGREGATE	 	$	900,000,000	 	 	$	200,000,000	 

 

    

     

    

 

COMMITMENTCOMMITMENTS

 

    

     

    

 

	 	 	 	Aggregate Amount of	 	 	 	Amount of	 	 	 	Percentage Assigned	 
	 	 	 	Commitment/Loans for all	 	 	 	Commitment/	 	 	 	of	 
	Facility Assigned2	 	 	Lenders	 	 	 	Loans Assigned	 	 	 	Commitment/Loans23	 
	 	 	$	 	 	 	$	 	 	 	 	 	%
	 	 	$	 	 	 	$	 	 	 	 	 	%
	 	 	$	 	 	 	$	 	 	 	 	 	%

 

Effective Date:                   
, 20        [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE
DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

The Assignee agrees to deliver to the Administrative Agent a
completed Administrative Questionnaire in which the Assignee designates one or more credit contacts to whom all syndicate-level
information (which may contain material non-public information about the Parent, the Company, the other Loan Parties and/or their
Related Parties and/or their respective securities) will be made available and who may receive such information in accordance with
the Assignee’s compliance procedures and applicable laws, including federal and state securities laws.

 

The terms set forth in this Assignment and Assumption are hereby
agreed to:

 

	 	ASSIGNOR
	 	 	 
	 	[NAME OF ASSIGNOR]
	 	 	 
	 	By:	 
	 	 	Title:
	 	 	 
	 	ASSIGNEE
	 	 
	 	[NAME OF ASSIGNEE]
	 	 
	 	By:	 
	 	 	Title:

 

Consented to and Accepted:

 

	JPMORGAN CHASE BANK, N.A., as Administrative Agent [and an
    Issuing Bank and a Swingline Lender]	 
	 	 
	By:	 	 
	Title:	 	 
	 	 	 
	[Consented to:]34	 
	 	 
	[OTHER ISSUING BANKS AND SWINGLINE LENDERS]	 

 

 

 2
Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under
this Assignment (e.g., “Revolving Commitment”, “Term Loan Commitment”, etc.).

23
Set forth, so at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

34
To be added only if the consent of the Issuing Banks and the Swingline Lenders is required by the terms of the
Credit Agreement.

 

    

     

    

 

	[Consented to:]45
	 
	PENTAIR FINANCE S.À R.L.
	 
	By:	 	 
	Title:	 	 

 

 

45
To be added only if the consent of the Company is required by the terms of the Credit Agreement.

 

    

     

    

 

2.           Payments.
From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.

 

3.   
      General Provisions. This Assignment and Assumption shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in
any number of counterparts, which together shall constitute one instrument. Acceptance and adoption of the terms of this
Assignment and Assumption by the Assignee and the Assignor by Electronic Signature or delivery of an executed counterpart of
a signature page of this Assignment and Assumption by any Approved Electronic Platform shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and
construed in accordance with, the law of the State of New York.

 

4.           [The Assignee confirms
for the benefit of the Administrative Agent and the Loan Parties but without liability to any Loan Party, that it is [not a UK
Qualifying Lender] [a UK Qualifying Lender (other than a UK Treaty Lender)] [(a UK Treaty Lender]].56

 

5.           [The Assignee confirms
that the person beneficially entitled to interest payable to that Assignee in respect of an advance under a Loan Document is either
(a) a company resident in the United Kingdom for United Kingdom tax purposes or (b) a partnership each member of which is (i) a
company so resident in the United Kingdom or (ii) a company not so resident in the United Kingdom which carries on a trade in the
United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the
meaning of section 19 of the UK CTA 2009) the whole of any share of interest payable in respect of that advance that falls to it
by reason of Part 17 of the UK CTA 2009 or (c) a company not so resident in the United Kingdom which carries on a trade in the
United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing
the chargeable profits (within the meaning of section 19 of the UK CTA 2009) of that company.]67

 

6.           [The Assignee confirms
that it holds a passport under the HM Revenue and Customs DT Treaty Passport scheme (reference number [   ]) and is tax resident
in [   ]78,
so that interest payable to it by borrowers is generally subject to full exemption from United Kingdom withholding tax and requests
that the Company notify:

 

		(i)	each UK Borrower which is a party to the Credit Agreement
as a Borrower as at the date of this Assignment and Assumption; and

 

		(ii)	each UK Borrower which becomes a Borrower after the date
of this Assignment and Assumption,

 

that it wishes that scheme to apply to
the Credit Agreement.]89

 

 

56
Delete as applicable – each Assignee is required to confirm which of these three categories it falls within.

 67
Insert if comes within clause (a)(ii) of the definition of UK Qualifying Lender.

78
Insert jurisdiction of tax residence.

89
Include if the Assignee holds a passport under the HM Revenue and Customs DT Treaty Passport scheme and wishes that scheme to apply
to the Credit Agreement.

 

    

     

    

 

EXHIBIT C-1

 

FORM OF INCREASING LENDER SUPPLEMENT

 

INCREASING LENDER SUPPLEMENT, dated  
, 20   (this “Supplement”), by and among each of the signatories hereto, to the Credit Agreement, dated
as of April 25, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Pentair Finance S.à r.l. a Luxembourg private limited liability company (Société à responsabilité
limitée), having its registered office at 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg and registered
with the Luxembourg Trade and Companies Register (R.C.S. Luxembourg) under number B 166305 (the “Company”),
Pentair plc (the “Parent”), Pentair Investments Switzerland GmbH (the “Swiss Guarantor”),
Pentair, Inc. (the “Initial Affiliate Borrower”), the other Affiliate Borrowers from time to time party thereto,
the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative
Agent”).

 

W I T N E S S E T H

 

WHEREAS, pursuant to Section 2.20
of the Credit Agreement, the Company has the right, subject to the terms and conditions thereof, to effectuate from time to time
an increase in the Aggregate Commitmentaggregate
Revolving Commitments and/or one or more tranches of Incremental Term Loans under the Credit Agreement by requesting
one or more Lenders to increase the amount of its Commitment and/or to participate in such a tranche;

 

WHEREAS, the Company has given notice to
the Administrative Agent of its intention to [increase the Aggregate Commitmentaggregate
Revolving Commitments] [and] [enter into a tranche of Incremental Term Loans] pursuant to such Section 2.20;
and

 

WHEREAS, pursuant to Section 2.20
of the Credit Agreement, the undersigned Increasing Lender now desires to [increase the amount of its Revolving
Commitment] [and] [participate in a tranche of Incremental Term Loans] under the Credit Agreement by executing and delivering to
the Company and the Administrative Agent this Supplement;

 

NOW, THEREFORE, each of the parties hereto
hereby agrees as follows:

 

1.       The
undersigned Increasing Lender agrees, subject to the terms and conditions of the Credit Agreement, that on the date of this Supplement
it shall [have its Revolving Commitment increased by $[  
], thereby making the aggregate amount of its total Revolving Commitments
equal to $[   ]] [and] [participate in a tranche of Incremental Term Loans with a commitment amount equal to $[   ] with
respect thereto].

 

[[__].The undersigned Increasing
Lender confirms for the benefit of the Administrative Agent and the Loan Parties but without liability to any Loan Party, that
it is [not a UK Qualifying Lender] [a UK Qualifying Lender (other than a UK Treaty Lender)] [(a UK Treaty Lender].]910

 

[[__].The undersigned Increasing
Lender confirms that the person beneficially entitled to interest payable to that Increasing Lender in respect of an advance under
a Loan Document is either (a) a company resident in the United Kingdom for United Kingdom tax purposes or (b) a partnership each
member of which is (i) a company so resident in the United Kingdom or (ii) a company not so resident in the United Kingdom which
carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable
profits (within the meaning of section 19 of the UK CTA 2009) the whole of any share of interest payable in respect of that advance
that falls to it by reason of Part 17 of the UK CTA 2009 or (c) a company not so resident in

 

 

910
Delete as applicable – each Increasing Lender is required to confirm which of these three categories it falls within.

 

    

     

    

 

the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable
profits (within the meaning of section 19 of the UK CTA 2009) of that company.]1011

 

[[__].     The undersigned Increasing
Lender confirms that it holds a passport under the HM Revenue and Customs DT Treaty Passport scheme (reference number [  
]) and is tax resident in [   ]1112,
so that interest payable to it by borrowers is generally subject to full exemption from United Kingdom withholding tax and requests
that the Company notify:

 

(i)          each
UK Borrower which is a party to the Credit Agreement as a Borrower as at the date of this Assignment and Assumption; and

 

(ii)         each
UK Borrower which becomes a Borrower after the date of this Assignment and Assumption,

 

that it wishes that scheme to apply to the Credit
Agreement.]1213

 

2.           The
Company hereby represents and warrants that no Default or Event of Default has occurred and is continuing on and as of the date
hereof.

 

3.           Terms
defined in the Credit Agreement shall have their defined meanings when used herein.

 

4.           This
Supplement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

5.           This
Supplement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same document.

 

IN WITNESS WHEREOF, each of the undersigned has caused this
Supplement to be executed and delivered by a duly authorized officer on the date first above written.

 

 

	 	[INSERT NAME OF INCREASING LENDER]
	 	 
	 	 
	 	 	 
	 	By:	       
	 	Name:	 
	 	Title:	 

 

 

1011
Insert if comes within clause (a)(ii) of the definition of UK Qualifying Lender.

1112
Insert jurisdiction of tax residence.

1213
Include if the Increasing Lender holds a passport under the HM Revenue and Customs DT Treaty Passport scheme and wishes that scheme
to apply to the Credit Agreement.

 

    

     

    

 

EXHIBIT C-2

 

FORM OF AUGMENTING LENDER SUPPLEMENT

 

AUGMENTING LENDER SUPPLEMENT, dated  
, 20   (this “Supplement”), by and among each of the signatories hereto, to the Credit Agreement, dated
as of April 25, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Pentair Finance S.à r.l. a Luxembourg private limited liability company (Société à responsabilité
limitée), having its registered office at 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg and registered
with the Luxembourg Trade and Companies Register (R.C.S. Luxembourg) under number B 166305 (the “Company”),
Pentair plc (the “Parent”), Pentair Investments Switzerland GmbH (the “Swiss Guarantor”),
Pentair, Inc. (the “Initial Affiliate Borrower”), the other Affiliate Borrowers from time to time party thereto,
the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative
Agent”).

 

W I T N E S S E T H

 

WHEREAS, the Credit Agreement provides in
Section 2.20 thereof that any bank, financial institution or other entity may [extend Revolving
Commitments] [and] [participate in tranches of Incremental Term Loans] under the Credit Agreement subject to the approval of the
Company and the Administrative Agent, by executing and delivering to the Company and the Administrative Agent a supplement to the
Credit Agreement in substantially the form of this Supplement; and

 

WHEREAS, the undersigned Augmenting Lender
was not an original party to the Credit Agreement but now desires to become a party thereto;

 

NOW, THEREFORE, each of the parties hereto hereby
agrees as follows:

 

1.       The
undersigned Augmenting Lender agrees to be bound by the provisions of the Credit Agreement and agrees that it shall, on the date
of this Supplement, become a Lender for all purposes of the Credit Agreement to the same extent as if originally a party thereto,
with a [Revolving Commitment with
respect to Revolving Loans of $[   ]] [and] [a commitment with respect to Incremental Term Loans of $[  
]].

 

[[__].     The undersigned Augmenting
Lender confirms for the benefit of the Administrative Agent and the Loan Parties but without liability to any Loan Party, that
it is [not a UK Qualifying Lender] [a UK Qualifying Lender (other than a UK Treaty Lender)] [(a UK Treaty Lender].]1314

 

[[__].     The undersigned Augmenting
Lender confirms that the person beneficially entitled to interest payable to that Augmenting Lender in respect of an advance under
a Loan Document is either (a) a company resident in the United Kingdom for United Kingdom tax purposes or (b) a partnership each
member of which is (i) a company so resident in the United Kingdom or (ii) a company not so resident in the United Kingdom which
carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable
profits (within the meaning of section 19 of the UK CTA 2009) the whole of any share of interest payable in respect of that advance
that falls to it by reason of Part 17 of the UK CTA 2009 or (c) a company not so resident in the United Kingdom which carries on
a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that
advance in computing the chargeable profits (within the meaning of section 19 of the UK CTA 2009) of that company.]1415

 

 

1314
Delete as applicable – each Augmenting Lender is required to confirm which of these three categories it falls within.

1415
Insert if comes within clause (a)(ii) of the definition of UK Qualifying Lender.

 

    

     

    

 

[[__].     The undersigned Augmenting
Lender confirms that it holds a passport under the HM Revenue and Customs DT Treaty Passport scheme (reference number [  
]) and is tax resident in [   ]1516,
so that interest payable to it by borrowers is generally subject to full exemption from United Kingdom withholding tax and requests
that the Company notify:

 

(i)          each
UK Borrower which is a party to the Credit Agreement as a Borrower as at the date of this Assignment and Assumption; and

 

(ii)         each
UK Borrower which becomes a Borrower after the date of this Assignment and Assumption,

 

that it wishes that scheme to apply to the Credit
Agreement.]1617

 

2.       The
undersigned Augmenting Lender (a) represents and warrants that it is legally authorized to enter into this Supplement; (b) confirms
that it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant
to Section 5.01 thereof, as applicable, and has reviewed such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this Supplement; (c) agrees that it will, independently and without
reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement or any other instrument
or document furnished pursuant hereto or thereto; (d) appoints and authorizes the Administrative Agent to take such action as agent
on its behalf and to exercise such powers and discretion under the Credit Agreement or any other instrument or document furnished
pursuant hereto or thereto as are delegated to the Administrative Agent by the terms thereof, together with such powers as are
incidental thereto; and (e) agrees that it will be bound by the provisions of the Credit Agreement and will perform in accordance
with its terms all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.

 

3.       The
undersigned’s address for notices for the purposes of the Credit Agreement is as follows:

 

[__]

 

4.       The
Company hereby represents and warrants that no Default or Event of Default has occurred and is continuing on and as of the date
hereof.

 

5.       Terms
defined in the Credit Agreement shall have their defined meanings when used herein.

 

6.       This
Supplement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

7.       This
Supplement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same document.

 

[remainder of this page intentionally left blank]

 

IN WITNESS WHEREOF, each of the undersigned
has caused this Supplement to be executed and delivered by a duly authorized officer on the date first above written.

 

 

1516
Insert jurisdiction of tax residence.

1617
Include if the Augmenting Lender holds a passport under the HM Revenue and Customs DT Treaty Passport scheme and wishes that scheme
to apply to the Credit Agreement.

 

    

     

    

 

 

EXHIBIT DD-1

 

[FORM OF]

REVOLVING CREDIT NOTE

 

April 25, 2018

 

FOR VALUE RECEIVED, the undersigned, [PENTAIR
FINANCE S.À R.L., a Luxembourg private limited liability company (Société à responsabilité
limitée), having its registered office at 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg and registered
with the Luxembourg Trade and Companies Register (R.C.S. Luxembourg) under number B 166305][PENTAIR, INC., a Minnesota corporation]
(the “Borrower”), HEREBY PROMISES TO PAY TO [LENDER] (the “Lender”) the outstanding principal
balance of the Lender’s Revolving Loans made to the
Borrower, together with interest thereon, at the rate or rates, in the amounts and at the time or times set forth in the Credit
Agreement (as the same may be amended, restated, supplemented
and/or otherwise modified from time to time, the “Credit
Agreement”), dated as of April 25, 2018, by and among Pentair Finance S.à r.l., Pentair plc, Pentair Investments
Switzerland GmbH, Pentair, Inc., the other Affiliate Borrowers from time to time party thereto, the Lenders party thereto, the
Documentation Agents, the Syndication Agents and JPMorgan Chase Bank, N.A., as the Administrative Agent, in each case at such place
as the Administrative Agent may specify from time to time, in lawful money of the United States in immediately available funds.

 

Capitalized terms used herein which are
not otherwise defined herein shall have the respective meanings ascribed thereto in the Credit Agreement.

 

The Revolving
Loans evidenced by this Note are prepayable in the amounts, and on the dates, set forth in the Credit Agreement. This Note is one
of the Notes under, and as such term is defined in, the Credit Agreement, and is subject to, and should be construed in accordance
with, the provisions thereof, and is entitled to the benefits set forth in the Loan Documents.

 

The Lender is hereby authorized to record
on the schedule annexed hereto and any continuation sheets which the Lender may attach thereto (a) the date and amount of each
Revolving Loan made by such Lender, (b) the character of
each Revolving Loan as one or more ABR Borrowings, one or
more Eurocurrency Borrowings, or a combination thereof, (c) the Interest Period and Adjusted LIBO Rate applicable to each Eurocurrency
Borrowing, and (d) the date and amount of each conversion of, and each payment or prepayment of principal of, each Revolving
Loan. No failure to so record nor any error in so recording shall affect the obligation of the Borrower to repay the Revolving
Loans, together with interest thereon, as provided in the Credit Agreement, and the outstanding principal balance of the Revolving
Loans as set forth in such schedule shall be prima facie evidence of the existence and amounts of the obligations recorded
therein.

 

Except as specifically otherwise provided
in the Credit Agreement, the Borrower hereby waives presentment, demand, notice of dishonor, protest, notice of protest and all
other demands, protests and notices in connection with the execution, delivery, performance, collection and enforcement of this
Note.

 

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

	 	[PENTAIR FINANCE S.À R.L.]
	 	[PENTAIR, INC.]
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

     

     

    

 

EXHIBIT
D-2

 

[FORM
OF]

TERM
LOAN NOTE

 

[
                    ], 2019

 

FOR
VALUE RECEIVED, the undersigned, PENTAIR FINANCE S.À R.L., a Luxembourg private limited liability company (Société
à responsabilité limitée), having its registered office at 26, Boulevard Royal, L-2449 Luxembourg, Grand
Duchy of Luxembourg and registered with the Luxembourg Trade and Companies Register (R.C.S. Luxembourg) under number B 166305
(the “Borrower”), HEREBY PROMISES TO PAY TO [LENDER] (the “Lender”) the outstanding principal balance of
the Lender’s Term Loans made to the Borrower, together with interest thereon, at the rate or rates, in the amounts and at
the time or times set forth in the Credit Agreement (as the same may be amended, restated, supplemented and/or otherwise modified
from time to time, the “Credit Agreement”), dated as of April 25, 2018, by and among Pentair Finance S.à r.l.,
Pentair plc, Pentair Investments Switzerland GmbH, Pentair, Inc., the other Affiliate Borrowers from time to time party thereto,
the Lenders party thereto, the Documentation Agents, the Syndication Agents and JPMorgan Chase Bank, N.A., as the Administrative
Agent, in each case at such place as the Administrative Agent may specify from time to time, in lawful money of the United States
in immediately available funds.

 

Capitalized
terms used herein which are not otherwise defined herein shall have the respective meanings ascribed thereto in the Credit Agreement.

 

The
Term Loans evidenced by this Note are prepayable in the amounts, and on the dates, set forth in the Credit Agreement. This Note
is one of the Notes under, and as such term is defined in, the Credit Agreement, and is subject to, and should be construed in
accordance with, the provisions thereof, and is entitled to the benefits set forth in the Loan Documents.

 

The
Lender is hereby authorized to record on the schedule annexed hereto and any continuation sheets which the Lender may attach thereto
(a) the date and amount of each Term Loan made by such Lender, (b) the character of each Term Loan as one or more ABR Borrowings,
one or more Eurocurrency Borrowings, or a combination thereof, (c) the Interest Period and Adjusted LIBO Rate applicable to each
Eurocurrency Borrowing, and (d) the date and amount of each conversion of, and each payment or prepayment of principal of, each
Term Loan. No failure to so record nor any error in so recording shall affect the obligation of the Borrower to repay the Term
Loans, together with interest thereon, as provided in the Credit Agreement, and the outstanding principal balance of the Term Loans
as set forth in such schedule shall be prima facie evidence of the existence and amounts of the obligations recorded therein.

 

Except
as specifically otherwise provided in the Credit Agreement, the Borrower hereby waives presentment, demand, notice of dishonor,
protest, notice of protest and all other demands, protests and notices in connection with the execution, delivery, performance,
collection and enforcement of this Note.

 

THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

	 	PENTAIR FINANCE S.À R.L.
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

     

     

    

 

SCHEDULE
OF TERM LOANS AND PAYMENTS OR PREPAYMENTS

 

	 	 	 	 	Amount of	 	 
	 	 	 	 	Principal	Unpaid	 
	 	Amount	Type of	Interest	Paid or	Principal	Notation
	Date	of Loan	Loan Currency	Period/Rate	Prepaid	Balance	Made By
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

     

     

    

 

EXHIBIT E

 

LIST OF CLOSING DOCUMENTS

 

PENTAIR FINANCE S.À R.L.

CERTAIN AFFILIATE BORROWERS

 

CREDIT FACILITIES

 

April 25, 2018

 

LIST OF CLOSING DOCUMENTS1718

 

A.       LOAN
DOCUMENTS

 

		1.	Credit Agreement (the “Credit Agreement”) by and among Pentair Finance S.à r.l. a Luxembourg private
limited liability company (Société à responsabilité limitée), having its registered office
at 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg and registered with the Luxembourg Trade and Companies Register
(R.C.S. Luxembourg) under number B 166305 (the “Company”), Pentair plc (the “Parent”),
Pentair Investments Switzerland GmbH (the “Swiss Guarantor”), Pentair, Inc. (the “Initial Affiliate
Borrower” and, together with the Company, the Parent and the Swiss Guarantor, the “Loan Parties”),
the other Affiliate Borrowers from time to time party thereto, the institutions from time to time parties thereto as Lenders (the
“Lenders”) and JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent for itself and the other Lenders
(the “Administrative Agent”), evidencing a revolving credit facility to the Borrowers from the Lenders in an
initial aggregate principal amount of $800,000,000.

 

SCHEDULES

 

	Schedule 2.01	--	Commitments
	Schedule 2.05	--	Swingline Sublimits
	Schedule 6.03	--	List of Existing Liens
	Schedule 6.05	--	Existing Debt

 

EXHIBITS

 

	Exhibit A	--	Form of Assignment and Assumption
	Exhibit B-1	--	Form of Opinion of Foley & Lardner LLP
	Exhibit B-2	--	Form of Opinion of Arthur Cox
	Exhibit B-3	--	Form of Opinion of Allen & Overy
	Exhibit B-4	--	Form of Opinion of Bär & Karrer Ltd.
	Exhibit C-1	--	Form of Increasing Lender Supplement
	Exhibit C-2	--	Form of Augmenting Lender Supplement
	Exhibit D	--	Form of Revolving Credit Note
	Exhibit E	--	List of Closing Documents
	Exhibit F-1	--	Form of Affiliate Borrowing Agreement
	Exhibit F-2	--	Form of Affiliate Borrowing Termination
	Exhibit G-1	--	Form of Borrowing Request
	Exhibit G-2	--	Form of Interest Election Request
	Exhibits H-1-4	--	Form of U.S. Tax Compliance Certificates

 

1718
Each capitalized term used herein and not defined herein shall have the meaning assigned to such term in the above-defined Credit
Agreement. Items appearing in bold and italics shall be prepared and/or provided by the Company and/or Company’s
counsel

 

     

     

    

 

EXHIBIT G-1

 

FORM OF BORROWING REQUEST

 

JPMorgan Chase Bank, N.A.,

as Administrative Agent

for the Lenders referred to below

 

[10 South Dearborn

Chicago, Illinois 60603

 

Attention: [                   ]

Facsimile: [                    ]]1819

 

With a copy to:

 

[                    ]

[                    ]

Attention: [                   ]

Facsimile: [                    ]

 

Re: Pentair Finance S.à r.l.

 

[Date]

 

Ladies and Gentlemen:

 

Reference is hereby made to the Credit Agreement
dated as of April 25, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Pentair Finance S.à r.l. a Luxembourg private limited liability company (Société à responsabilité
limitée), having its registered office at 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg and registered
with the Luxembourg Trade and Companies Register (R.C.S. Luxembourg) under number B 166305 (the “Company”),
Pentair plc (the “Parent”), Pentair Investments Switzerland GmbH, Pentair, Inc. (the “Initial Affiliate
Borrower”), the other Affiliate Borrowers from time to time party thereto, the institutions from time to time parties
thereto as Lenders (the “Lenders”) and JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent for
itself and the other Lenders (the “Administrative Agent”). Capitalized terms used but not defined herein shall
have the meanings assigned to such terms in the Credit Agreement. The [undersigned Borrower][Company, on behalf of [Affiliate Borrower],]
hereby gives you notice pursuant to Section 2.03 of the Credit Agreement that it requests a Revolving
Borrowing under the Credit Agreement, and in that connection the [undersigned Borrower][Company, on behalf of [Affiliate Borrower],]
specifies the following information with respect to such Revolving Borrowing requested
hereby:

 

1.          Name of Borrower:
                       

 

2.          The
requested Borrowing is a [Revolving][Term Loan] Borrowing

 

23.        Aggregate
principal amount of Borrowing:1920
 
                       

 

34.        Date
of Borrowing (which shall be a Business Day):  
                       

 

 

1819
If request is in respect of Revolving Loans in a Foreign Currency or a Designated Loan, please replace this address with the London
address from Section 9.01(a)(ii).

 

1920
Not less than applicable amounts specified in Section 2.02(c).

 

     

     

    

 

45.          Type
of Borrowing (ABR or Eurocurrency):                         

 

56.          Interest
Period and the last day thereof (if a Eurocurrency Borrowing):2021
                        

 

67.          Agreed
Currency:                         

 

78.          Location
and number of the Borrower’s account or any other account agreed upon by the Administrative Agent and the Borrower to which
proceeds of Borrowing are to be disbursed:                         

 

[Signature Page Follows]

 

 

 2021
Which must comply with the definition of “Interest Period” and end not later than the Maturity Date.

 

     

     

    

 

The undersigned hereby represents and warrants
that the conditions to lending specified in Section[s] [4.01 and]2122
4.02 of the Credit Agreement are satisfied as of the date hereof.

 

	 	Very truly yours,
	 	 
	 	[PENTAIR FINANCE S.À R.L.,
	 	as the Company]
	 	 
	 	[AFFILIATE BORROWER,
	 	as a Borrower]
	 	 
	 	By:	                
	 	 
	 	Name:
	 	Title:

 

 

 2122
To be included only for Borrowings on the Effective Date.

 

     

     

    

 

EXHIBIT G-2

 

FORM OF INTEREST ELECTION REQUEST

 

JPMorgan Chase Bank, N.A.,

as Administrative Agent

for the Lenders referred to below

 

[10 South Dearborn

Chicago, Illinois 60603

 

Attention: [               ]

Facsimile: ([     ]) [     ]-[          ]]2223

 

Re: Pentair Finance S.à r.l.

 

[Date]

 

Ladies and Gentlemen:

 

Reference is hereby made to the Credit Agreement
dated as of April 25, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Pentair Finance S.à r.l. a Luxembourg private limited liability company (Société à responsabilité
limitée), having its registered office at 26, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg and registered
with the Luxembourg Trade and Companies Register (R.C.S. Luxembourg) under number B 166305 (the “Company”),
Pentair plc (the “Parent”), Pentair Investments Switzerland GmbH (the “Swiss Guarantor”),
Pentair, Inc. (the “Initial Affiliate Borrower”), the other Affiliate Borrowers from time to time party thereto,
the institutions from time to time parties thereto as Lenders (the “Lenders”) and JPMorgan Chase Bank, N.A.,
in its capacity as Administrative Agent for itself and the other Lenders (the “Administrative Agent”). Capitalized
terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement. The [undersigned Borrower][Company,
on behalf of [Affiliate Borrower],] hereby gives you notice pursuant to Section 2.08 of the Credit Agreement that it requests to
convert an existing Revolving Borrowing under the Credit Agreement, and in that
connection the [undersigned Borrower][Company, on behalf of [Affiliate Borrower],] specifies the following information with respect
to such conversion requested hereby:

 

		1.	List Borrower, date, Type, Class, principal amount, Agreed
Currency and Interest Period (if applicable) of existing Borrowing:                         

 

		2.	Aggregate principal amount of resulting Borrowing:                        

 

		3.	Effective date of interest election (which shall be a
Business Day):                        

 

		4.	Type of Borrowing (ABR or Eurocurrency):                        

 

		5.	Interest Period and the last day thereof (if a Eurocurrency Borrowing):2324                        

 

		6.	Agreed Currency:                        

 

 

2223
If request is in respect of Revolving Loans in a Foreign Currency or a Designated Loan, please replace this address with the London
address from Section 9.01(a)(ii).

 

2324
Which must comply with the definition of “Interest Period” and end not later than the applicable
Maturity Date.amba-ex101_152.htm

Exhibit 10.1

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED, AND THE EXCLUDED TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH AN ASTERISK [*].

 

 

STANDARD LEASE

(Multiple Tenant – Tenant Pays its Percentage Share of Operating Expenses,

Real Property Taxes and Insurance Costs – NO Base Year)

 

 

1.Basic Lease Provisions.

 

1.1Date for Reference Purposes:August 8, 2019

 

1.2Landlord:The Realty Associates Fund XI Portfolio, L.P., 

a Delaware limited partnership

 

1.3Tenant:Ambarella Corporation, 

a Delaware corporation

 

1.4Premises Address:Original Premises:Suites 101, 110 and 210, 3101 Jay

Street, Santa Clara, California

 

Expansion Premises:Suite 201, 3131 Jay Street, 

Santa Clara, California

 

 

1.5Approximate Rentable Area

of Premises:Original Premises:47,015

(in square feet)

Expansion Premises:11,722

 

Total:58,737

 

1.6Use:General office and research and development, and any other

related use to the extent permitted by the City of Santa Clara

and all agencies and governmental authorities having 

jurisdiction thereof

 

1.7Term:Original Premises:June 1, 2020 – August 31, 2025

 

Expansion Premises:Expansion Premises Commencement

Date (as defined in Section 3.2) –

August 31, 2025

 

1.8Commencement Date:Original Premises:June 1, 2020 (the “Original 

Premises Commencement Date”)

 

Expansion Premises:Expansion Premises Commencement

Date

 

1.9Monthly Base Rent:Base Rent due for the Original Premises:

 

 

		
	
Period
	
Base Rent Due Each Month for Original Premises

	
June 1, 2020 – May 31, 2021:
	
[*]

	
June 1, 2021 – May 31, 2022:
	
[*]

	
June 1, 2022 – May 31, 2023:
	
[*]

	
June 1, 2023 – May 31, 2024:
	
[*]

	
June 1, 2024 – May 31, 2025:
	
[*]

	
June 1, 2025 – August 31, 2025:
	
[*]

 

1

 

In addition to the Base Rent payable by Tenant for the Original

Premises, Tenant shall pay the following additional Base Rent 

for the Expansion Premises:

 

		
	
Period
	
Base Rent Due Each Month for Expansion Premises

	
Expansion Premises Commencement Date – May 31, 2021:
	
[*]

	
June 1, 2021 – May 31, 2022:
	
[*]

	
June 1, 2022 – May 31, 2023:
	
[*]

	
June 1, 2023 – May 31, 2024:
	
[*]

	
June 1, 2024 – May 31, 2025:
	
[*]

	
June 1, 2025 – August 31, 2025:
	
[*]

 

*See Section 2 of the Addendum to this Lease for conditionally 

waived Base Rent.

 

1.10Base Rent and Estimated Operating

Expenses Paid Upon Execution:

 

Base Rent:$0

 

Applied To:N/A

(insert month(s))

 

Operating Expenses:$0

 

Applied To:N/A

(insert month(s))

 

1.11Tenant's Percentage Share:See Section 6.4

 

1.12Security Deposit:$173,635.32 (See Addendum)

 

1.13Number of Parking Spaces:From the Original Premises Commencement Date through the

Expansion Premises Commencement Date:171 unreserved 

spaces

 

From and after the Expansion Premises Commencement 

Date:214 unreserved spaces

 

1.14Real Estate Broker:

 

Landlord:Colliers International

 

Tenant:Newmark Knight Frank (Ben Stern and Phil Mahoney)

 

1.15Exhibits Attached to Lease:Exhibit A – "Premises;" Exhibit B – "Verification Letter;"

Exhibit C – "Rules and Regulations;" Exhibit D – "Form of HazMat Certificate"; Exhibit E – “Addendum to Lease”

 

1.16Addresses for Notices:

 

Landlord:The Realty Associates Fund XI Portfolio, L.P.

c/o TA Realty1301 Dove Street, Suite 860Newport Beach, CA 92660Attention:  Asset Manager/Jay Technology Centre

 

and

 

The Realty Associates Fund XI Portfolio, L.P.

c/o TA Realty28 State Street, Tenth Floor

2

 

Boston, MA 02109Attention:  Asset Manager/Jay Technology Centre

 

With a Copy to:Davis Property Management, Inc.

1735 North 1st Street, Suite 290

San Jose, CA 95112

Attention:  Property Manager/Jay Technology Centre

 

and

 

Davis Property Management, Inc.

1420 Bristol Street North, Suite 100

Newport Beach, CA 92660

Attention:  Property Manager/Jay Technology Centre

 

Tenant:Ambarella Corporation

3101 Jay Street, Suite 110

Santa Clara, CA 95054

 

1.17Business Hours:8:00 a.m. through 6:00 p.m. Monday through Friday,

excluding Holidays

 

2.Premises.   

 

2.1Acceptance. Unless the context otherwise requires, references in this Lease to the “Premises” shall mean the Original Premises and the Expansion Premises collectively. Landlord leases to Tenant, and Tenant leases from Landlord, the Premises, to have and to hold for the term of this Lease, subject to the terms, covenants and conditions of this Lease.  The Original Premises and the Expansion Premises are separately depicted on Exhibit "A" attached hereto.  The Original Premises depicted on Exhibit "A" constitutes all of the rentable space in the building located at 3101 Jay Street, San Jose, California (the “3101 Building”) and the Expansion Premises depicted on Exhibit "A" constitutes a portion of the rentable space in the building located at 3131 Jay Street, San Jose, California (the “3131 Building”).  The 3101 Building and the 3131 Building are sometimes collectively referred to as the “Building” or the “Buildings”. Tenant accepts the Original Premises in its condition on the Original Premises Commencement Date, subject to all applicable laws, ordinances, regulations, covenants, conditions, restrictions and easements, and except as may be otherwise expressly provided herein, Landlord shall not be obligated to make any repairs or alterations to the Original Premises.  Subject to Section 2.2 below, Tenant accepts the Expansion Premises in its condition on the Expansion Premises Commencement Date, subject to all applicable laws, ordinances, regulations, covenants, conditions, restrictions and easements, and except as may be otherwise expressly provided herein, Landlord shall not be obligated to make any repairs or alterations to the Expansion Premises.  Tenant acknowledges that Landlord has made no representation or warranty as to the suitability of the Premises for the conduct of Tenant's business, and Tenant waives any implied warranty that the Premises are suitable for Tenant's intended purposes.  The number of rentable square feet set forth in Section 1.5 is an approximation, and the Base Rent and Tenant’s Percentage Share shall not be changed if the actual number of rentable square feet in the Original Premises or the Expansion Premises is different than the number of square feet set forth in Section 1.5.  Landlord shall determine the number of rentable square feet in the Buildings, in Landlord’s sole discretion. 

 

2.2Condition of Expansion Premises.  Landlord represents and warrants to Tenant that on the Expansion Premises Commencement Date the roof of the Expansion Premises will be in good condition and repair and the following parts of the Expansion Premises shall be in good working order: (a) plumbing systems, (b) electrical systems and (c) all HVAC units (collectively, the "Building Systems").  In the event that it is determined that this warranty is untrue, Landlord shall not be in default under the Lease if after Landlord receives written notice of the representation or warranty that is untrue, Landlord promptly takes the actions, at Landlord's sole expense, necessary to put the applicable Building System in working order.  The foregoing representation and warranty shall apply only to the condition of the Building Systems as of the Expansion Premises Commencement Date and shall not apply to any point in time thereafter. Tenant shall notify Landlord in writing (the "Warranty Notice") within thirty (30) days after the Expansion Premises Commencement Date, time being of the essence, (the "Notice Date") of each way, if any, that the forgoing representation and warranty was untrue on the Expansion Premises Commencement Date (an "Untrue Warranty").  The Warranty Notice shall state the specific way in which one or more Building System was not in good working order on the Expansion Premises Commencement Date.  Landlord shall have no responsibility to repair any Building System unless Tenant notifies Landlord on or before the Notice Date in a Warranty Notice of the Untrue Warranty, and if Tenant notifies Landlord that a Building System was not in good working order on the Expansion Premises Commencement Date after the Notice Date, Landlord shall have no obligation pursuant to this section to repair the Building System that is not in good working order.  Notwithstanding the forgoing, Landlord shall have no obligation pursuant to this section to repair a Building System if the repair is necessitated by the negligence or misuse of Tenant or by Alterations or other modifications made to the Expansion Premises by Tenant.

 

2.3Common Areas.  Landlord hereby grants to Tenant for the benefit of Tenant and its employees, suppliers, shippers, customers and invitees during the term of this Lease, the nonexclusive right to use, in common with others entitled to such use (including Landlord), the Common Areas (as hereinafter defined) as they exist from time to time, subject to all rights 

3

 

reserved by Landlord hereunder and under the terms of all rules and regulations promulgated by Landlord from time to time with respect thereto.  Landlord reserves the right from time to time to (a) make changes in the Common Areas, including, without limitation, changes in location, size, shape and number of driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas and walkways; (b) close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available; (c) construct additional buildings, parking areas, loading dock facilities and other improvements within the Common Areas; and (d) do and perform such other acts and make such other changes in, to or with respect to the Common Areas as Landlord may deem appropriate; provided, however, any such permanent changes or alterations to the layout of the Common Areas (as defined below) that substantially and adversely affect parking, loading or unloading or substantially and adversely interfere with Tenant's use of the Premises or the Common Areas (as defined below) shall require Tenant's prior written consent, which consent shall not be unreasonably withheld or delayed.  As used herein, the term "Common Areas" means all areas and facilities outside the Premises and within the exterior boundary lines of the land owned by Landlord that are provided and designated by Landlord as such from time to time for general nonexclusive use of Tenant and others, including, if designated by Landlord as Common Areas, common entrances, lobbies, corridors, stairwells, public restrooms, elevators, roadways and sidewalks parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways and landscaped areas, and Tenant shall have no leasehold interest in the Common Areas.  The Premises, the Building, the Common Areas, the land upon which the same are located, along with all other buildings and improvements designated by Landlord, are herein collectively referred to as the "Project.”  Under no circumstances shall the right herein granted to use the Common Areas be deemed to include the right to store any property, temporarily or permanently, in the Common Areas, including, without limitation, the storage of trucks or other vehicles. Any such storage shall be permitted only with the prior written consent of Landlord, which consent may be revoked at any time.  In the event that any unauthorized storage shall occur then Landlord shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove the property and charge the cost to Tenant, which cost shall be immediately payable upon demand by Landlord.  

 

3.Term and Commencement Date.

 

3.1Original Premises.  The term of Tenant’s lease of the Original Premises is set forth in Section 1.7 and the date Tenant’s lease of the Original Premises commences is set forth in Section 1.8.  Tenant currently occupies the Original Premises pursuant to an existing lease it has entered into with Landlord.  Tenant shall be deemed to have accepted possession of the Original Premises in its “as is” condition on the Original Premises Commencement Date.

 

3.2Expansion Premises.  The term of Tenant’s lease of the Expansion Premises is set forth in Section 1.7.  Tenant’s lease of the Expansion Premises shall commence on the later to occur of the following dates (the “Expansion Premises Commencement Date”): (i) date Landlord provides Tenant with written notice that the Expansion Premises is available for Tenant’s occupancy or (ii) January 1, 2021.   When the actual Expansion Premises Commencement Date is established by Landlord, Landlord shall accurately complete the letter attached hereto as Exhibit B and Tenant shall, within ten (10) days after Landlord's request, execute the letter and deliver it to Landlord.  Tenant's failure to execute the letter within said ten (10) day period shall be a default hereunder and shall constitute Tenant's acknowledgment of the truth of the facts contained in the letter delivered by Landlord to Tenant.

 

4.Use.

 

4.1Permitted Use.  The Premises shall be used only for the purpose described in Section 1.6 and for no other purpose.  In no event shall any portion of the Premises be used for retail sales.  Tenant shall not initiate, submit an application for, or otherwise request, any land use approvals or entitlements with respect to the Premises or any other portion of the Project, including, without limitation, any variance, conditional use permit or rezoning, without first obtaining Landlord's prior written consent, which may be given or withheld in Landlord's sole discretion.  Tenant shall not (a) permit any animals or pets to be brought to or kept in the Premises, (b) install any antenna, dish or other device on the roof of the Building or outside of the Premises, (c) make any penetrations into the roof of the Building, (d) place loads upon floors, walls or ceilings in excess of the load such items were designed to carry, (e) place or store, nor permit any other person or entity to place or store, any property, equipment, materials, supplies or other items outside of the Building in which the Premises is located or (f) change the exterior of the Premises or the Building in which the Premises is located.  In no event shall Tenant use all or any part of the Premises for the production, processing, sale or distribution of marijuana.  Tenant acknowledges that it has satisfied itself by its own independent investigation that the Premises and the Project are suitable for its intended use and that its use is permitted by applicable laws and regulations, and that neither Landlord nor Landlord's agents have made any representation or warranty as to the present or future suitability of the Premises, or the Project for the conduct of Tenant's business.

 

4.2Compliance With Laws.  Tenant shall, at Tenant's sole expense, promptly comply with all applicable laws, ordinances, rules, regulations, orders, certificates of occupancy, conditional use or other permits, variances, covenants, conditions, restrictions, easements, the recommendations of Landlord's engineers or other consultants, and requirements of any fire insurance underwriters, rating bureaus or government agencies, now in effect or which may hereafter come into effect, whether or not they reflect a change in policy from that now existing, during the term or any part of the term hereof, relating in any manner to the Premises or the occupation and use by Tenant of the Premises.  Tenant shall, at Tenant's sole expense, comply with all accessibility requirements of State and Federal law that apply to the Premises, and all federal, state and local laws and regulations governing occupational safety and health.  Tenant acknowledges that it will be responsible for complying with current and future laws and regulations even though such compliance requires Tenant to make substantial repairs or 

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modifications (including structural modifications) to the Premises and even though the application of the law or regulation is unrelated to Tenant’s specific use of the Premises.  Notwithstanding the foregoing, if Tenant is obligated to comply with a law or regulation (a “Legal Requirement”) and due to the Legal Requirement a Capital Alteration (as defined below) must be made to the Premises, and such Capital Alteration is not required due to a Tenant Condition (as defined below), Landlord shall make the Capital Alteration and Tenant shall reimburse Landlord for the cost of the Capital Alteration as provided below.  If Landlord makes a Capital Alteration, the cost of the Capital Alteration shall be amortized on a straight-line basis over its useful life, as reasonably determined by Landlord consistent with sound real estate practices and generally accepted accounting principles, and from and after the date that Landlord substantially completes the Capital Alteration Tenant shall reimburse Landlord on the first day of each calendar month during the remainder of the term of this Lease an amount equal to the product of multiplying the cost of the Capital Alteration by a fraction, the numerator of which is one (1), and the denominator of which is the number of months in the useful life of the Capital Alteration.  A “Capital Alteration” shall mean any single alteration to the Premises (a) the cost of which is not fully deductible in the year incurred in accordance with generally accepted accounting principles and (b) which exceeds [*] in cost.  A Capital Alteration shall be deemed to have been made due to a “Tenant Condition” if the alteration is triggered by or is the result of Tenant’s negligence or misuse of the Premises, Tenant's alteration of the Premises, Tenant’s particular use of the Premises or the Capital Alteration relates to any equipment or improvement installed by Tenant in the Premises.  Any alteration to the Premises that is required to comply with a Legal Requirement due to a Tenant Condition or that does not constitute a Capital Alteration shall, subject to Section 13.1, be made by Tenant, at Tenant’s sole cost and expense.  Tenant shall not permit any objectionable or unpleasant odors, smoke, dust, gas, noise or vibrations to emanate from the Premises, or take any other action that would constitute a nuisance, create a dangerous situation, or would disturb, unreasonably interfere with or endanger Landlord or any other tenants of the Project.  Tenant shall obtain, at its sole expense, any permit or other governmental authorization required to operate its business from the Premises.  Landlord shall not be liable for the failure of any other tenant or person to abide by the requirements of this section or to otherwise comply with applicable laws and regulations, and Tenant shall not be excused from the performance of its obligations under this Lease due to such a failure.  To Landlord’s actual knowledge, the Premises has not undergone an inspection by a certified access specialist.  In addition, to Landlord’s actual knowledge, a disability access inspection certificate for the Premises has not been issued.  Pursuant to Section 1938 of the California Civil Code, Landlord hereby provides the following notification to Tenant: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction related accessibility standards within the premises.”  Landlord’s actual knowledge shall mean and be limited to the actual knowledge of the person who is the Building owner’s asset manager (not the Building’s property manager) on the date set forth in Section 1.1, without any duty of inquiry or investigation, and such asset manager shall have no personal liability if such representation or warranty is untrue.

 

4.3Occupant Density.  Tenant shall maintain a ratio of not more than one Occupant (as defined below) for each [*] square feet of rentable area in the Premises (hereinafter, the “Occupant Density”).  If Landlord has a reasonable basis to believe that Tenant is exceeding the Occupant Density, upon request by Landlord, Tenant shall maintain on a daily basis an accurate record of the number of employees, visitors, contractors and other people that visit the Premises (collectively "Occupants").  Landlord shall have the right to audit Tenant's Occupant record and, at Landlord's option, Landlord shall have the right to periodically visit the Premises without advance notice to Tenant in order to track the number of Occupants working at the Premises.  For purposes of this section, "Occupants" shall not include people not employed by Tenant that deliver or pick up mail or other packages at the Premises, employees of Landlord or employees of Landlord's agents or contractors.  Tenant's failure to comply with the requirements of this section shall constitute a default under Section 17.1 and Landlord shall have the right, in addition to any other remedies it may have at law or equity, to specifically enforce Tenant's obligations under this section.  Nothing contained in this section shall be interpreted to entitle Tenant to use more parking spaces than the number permitted by Section 1.13.

 

5.Base Rent.  Tenant shall pay Base Rent in the amount set forth on the first page of this Lease.  At the time Tenant executes this Lease it shall pay (or have paid) to Landlord the amounts set forth in Sections 1.10 and 1.12. Tenant promises to pay to Landlord in advance, without demand, deduction or set-off, monthly installments of Base Rent and Operating Expenses on or before the first day of each calendar month succeeding the Commencement Date.  Payments of Base Rent and Operating Expenses for any fractional calendar month shall be prorated.  All payments required to be made by Tenant to Landlord hereunder shall be payable at such address as Landlord may specify from time to time by written notice delivered in accordance herewith.  Tenant shall have no right at any time to abate, reduce, or set off any rent due hereunder except where expressly provided in this Lease. 

 

6.Operating expense payments.

 

6.1Operating Expenses.  Tenant shall pay Tenant's Percentage Share (as defined below) of the Operating Expenses for the Project.  If less than one hundred percent (100%) of the rentable square feet in the Building or the Project is occupied by tenants or Landlord is not supplying services to one hundred percent (100%) of the rentable square feet of the Building or the Project at any time during any calendar year, Operating Expenses for such calendar year shall be deemed to be an amount equal to the Operating Expenses which would normally be expected to be incurred had one hundred percent (100%) 

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of the Building’s and the Project's rentable square feet been occupied and had Landlord been supplying services to one hundred percent (100%) of the Project's rentable square feet throughout such calendar year.  For the purposes of this Lease, the term "Operating Expenses" shall mean all expenses and disbursements of every kind (subject to the limitations set forth below) which Landlord incurs, pays or becomes obligated to pay in connection with the ownership, operation, and maintenance of the Project (including the associated Common Areas), including, but not limited to, the following:

 

(a)wages and salaries (including management fees) of all employees, agents, consultants and other individuals or entities engaged in the operation, repair, replacement, maintenance, and security of the Project, including taxes, insurance and benefits relating thereto;

 

(b)all supplies and materials used in the operation, maintenance, repair, replacement, and security of the Project;

 

(c)annual cost of all Capital Improvements (as defined below) made to the Project which although capital in nature (i) can reasonably be expected to reduce the normal operating costs of the Project, (ii) are made in order to comply with any law now or hereafter promulgated by any governmental authority or (iii) are reasonably necessary replacement improvements to any portion of the Project after the Original Premises Commencement Date if a repair is no longer cost-effective.  Capital Improvements shall be amortized on a straight-line basis over the useful economic life of such improvements as determined by Landlord in its reasonable discretion consistent with sound real estate practices and generally accepted accounting principles together with an interest factor on the unamortized cost of such item equal to [*] or the maximum rate of interest permitted by applicable law;

 

(d)cost of all utilities paid by Landlord;

 

(e)cost of any insurance or insurance related expense applicable to the Project and Landlord's personal property used in connection therewith, including, but not limited to, the insurance costs described in Section 10.2; provided, however, that Tenant’s Percentage Share of insurance deductibles in any one year shall not exceed [*] for earthquake damages and [*] with respect to any other casualty;

 

(f)cost of repairs, replacements and general maintenance of the Project and all Common Areas (including all truck court areas, paving and parking areas, Common Area lighting facilities, fences, gates, water lines, electrical lines, sewer lines, rail spur areas and any other item Landlord is obligated to repair or maintain), other than costs necessary to assure the structural soundness of the roof, foundation and exterior walls of the Project which are payable solely by Landlord under Section 11; 

 

(g)cost of service or maintenance contracts with independent contractors for the operation, maintenance, repair, replacement or security of the Project (including, without limitation, alarm service, exterior painting, trash collection, snow, ice, debris and waste removal and landscape maintenance);

 

(h)the cost of all accounting fees, management fees, legal fees and consulting fees attributable to the operation, ownership, management, maintenance or repair of the Project; provided, however, that in no event shall the property management fee exceed an amount equal to [*] of the Base Rent and Operating Expenses applicable to the Project; 

 

(i)payments made by Landlord under any easement, license, operating agreement, declaration, restrictive covenant or other agreement relating to the sharing of costs among property owners;

 

(j)intentionally omitted;

 

(k)the cost of all business licenses, permits or similar fees relating to the operation, ownership, repair or maintenance of the Project; 

 

(l)the cost of all Real Property Taxes;

 

(m)transportation taxes, fees or assessments, including but not limited to, mass transportation fees, metrorail fees, trip fees, regional and transportation district fees;

 

(n)all costs and expenses associated with or related to the implementation by Landlord of any transportation demand management program or similar program required to comply with any law or regulation; 

 

(o)fees assessed by any air quality management district or other governmental or quasi-governmental entity regulating pollution; 

 

(p)the cost of installing intrabuilding network cabling ("INC") and maintaining, repairing, securing and replacing existing INC;

 

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(q)the cost of maintaining, repairing and replacing telecommunication equipment, elevators, tenant directories, building directories and monument signage; and

 

(r)the cost of any other item the cost of which is stated in this Lease to be an Operating Expense.

 

For purposes of this Lease, a "Capital Improvement" shall be an improvement to the Project that Landlord is obligated or permitted to make pursuant to this Lease, the cost of which is not fully deductible in the year incurred in accordance with generally accepted accounting principles; provided, however, that, at Landlord's option, the following items shall be treated as expenses and not Capital Improvements, and the entire cost of these items may be included in Operating Expenses in the year incurred:  (i) the cost of painting all or part of the Project, (ii) the cost of resurfacing and restriping roadways and parking areas, (iii) the cost of any items Tenant is obligated to pay for pursuant to Section 12 that Landlord elects, in its sole discretion, to include in Operating Expenses and (iv) the cost of Capital Improvements incurred [*] to the extent the cost of the Capital Improvements are less than [*].  References to facilities, services, utilities or other items in this section shall not impose an obligation on Landlord to have said facilities or to provide said services unless such facilities and services already exist at the Project.

 

6.2Operating Expense Exclusions.  Notwithstanding anything to the contrary contained herein, for purposes of this Lease, the term "Operating Expenses" shall not include the following: (i) costs (including permit, license and inspection fees) incurred for tenant improvements for other tenants within the Project; (ii) legal and auditing fees (other than those fees reasonably incurred in connection with the maintenance and operation of all or any portion of the Project), leasing commissions, advertising expenses and similar costs incurred in connection with the leasing of the Project; (iii) depreciation of the Building or any other improvements situated within the Project; (iv) any items for which Landlord is actually reimbursed by insurance or by direct reimbursement by any other tenant of the Project; (v) costs of repairs or other work necessitated by fire, windstorm or other casualty (excluding any deductibles) and/or costs of repair or other work necessitated by the exercise of the right of eminent domain to the extent insurance proceeds or a condemnation award, as applicable, is actually received by Landlord for such purposes; provided, such costs of repairs or other work shall be paid by the parties in accordance with the provisions of Sections 11 and 12, below; (vi) other than any interest charges for Capital Improvements referred to in Section 6.1(c) hereinabove, any interest or payments on any financing for the Building or the Project and interest and penalties incurred as a result of Landlord's late payment of any invoice; (vii) costs associated with the investigation and/or remediation of Hazardous Materials (hereafter defined) present in, on or about any portion of the Project, unless such costs and expenses are the responsibility of Tenant as provided in Section 27 hereof, in which event such costs and expenses shall be paid solely by Tenant in accordance with the provisions of Section 27 hereof; (viii) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in the Project to the extent the same exceeds the costs of such by unaffiliated third parties on a competitive basis; (ix) any payments under a ground lease or master lease; (x) except as provided above in Section 6.1, the cost of Capital Improvements; (xi) all costs associated with the operation of the business of the entity which constitutes “Landlord” (as distinguished from the costs of the operations of the Project) including, but not limited to, Landlord’s general corporate overhead and general administrative expenses, (xii) costs incurred in connection with the sale of transfer of the Project (e.g., documentary transfer taxes, recording fees, title insurance premiums, appraisal costs and escrow fees), (xiii) costs arising from Landlord’s negligence; (xiv) costs occasioned by the violation of any law by Landlord, any other occupant of the Project, or their respective agents, employees or contractors; (xv) increases in insurance costs caused by the activities of another occupant of the Project; (xvi) interest, charges and fees incurred on debt; (xvii), expense reserves; (xviii) wages, compensation, and labor burden for any employee not stationed on Project on a full-time basis unless the same are equitably allocated based on the amount of time devoted by the employee to the Project; (xix) expenses in connection with services or other benefits which are provided to another tenant or occupant of the Project and which do not benefit Tenant (e.g., a health club that is only available to one tenant); provided, however, general maintenance of the Project even though a general maintenance item may only benefit one Tenant (e.g. repairing the thermostat in that tenant’s premises) may be included in Operating Expenses, and provided further, that Landlord’s agreements with tenants relating to the cost of parking or HVAC shall not limit Landlord’s right to include the cost of maintaining and repairing the Project’s parking areas and HVAC units in Operating Expenses, (xx) any cost of any service or items sold or provided to tenants or other occupants for which Landlord or Landlord’s managing agent has been reimbursed by such tenants or other occupants (other than through Operating Expenses) for such service or has been reimbursed by insurance or otherwise compensated by parties other than tenants of the Project, (xxi) any repair or maintenance cost caused by the negligence or willful misconduct of Landlord, (xxii) expenses that another tenant of the Project is obligated to pay based on its negligence or willful misconduct or the negligence or willful misconduct of its agents, employees or contractors and (xxiii) expenses another person or entity is obligated to pay (other than through Operating Expenses).

 

6.3Payment.  Landlord shall, from time to time, estimate what Tenant's Percentage Share of Operating Expenses will be, and the same shall be payable by Tenant monthly during each calendar year of the Lease term, on the same day as the Base Rent is due hereunder.  In the event that Tenant pays Landlord's estimate of Tenant's Percentage Share of Operating Expenses, Landlord shall use its commercially reasonable efforts to deliver to Tenant by June 30th of each calendar year a reasonably detailed statement (the "Statement") showing Tenant's Percentage Share of the actual Operating Expenses incurred during the preceding calendar year.  Landlord's failure to deliver the Statement to Tenant within said period shall not constitute Landlord's waiver of its right to collect said amounts or otherwise prejudice Landlord's rights hereunder; provided, however, Landlord shall not have the right to collect from Tenant any Operating Expense that was known by Landlord and which was not billed to Tenant within [*] after the Operating Expense was incurred.  If Tenant's payments under this section during said calendar year exceed Tenant's Percentage Share as indicated on the Statement, Tenant shall be entitled to credit the 

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amount of such overpayment against Tenant's Percentage Share of Operating Expenses next falling due.  If Tenant's payments under this section during said calendar year were less than Tenant's Percentage Share as indicated on the Statement, Tenant shall pay to Landlord the amount of the deficiency within thirty (30) days after delivery by Landlord to Tenant of the Statement.  Landlord and Tenant shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last calendar year for which Tenant is responsible for Operating Expenses, notwithstanding that the Lease term may have terminated before the end of such calendar year; and this provision shall survive the expiration or earlier termination of the Lease. 

 

6.4Tenant's Percentage Share.  "Tenant's Percentage Share" as used in this Lease shall mean the percentage of the cost of Operating Expenses for which Tenant is obligated to reimburse Landlord pursuant to this Lease.  Notwithstanding anything to the contrary contained in Section 1.11, Landlord shall have the right to determine Tenant's Percentage Share of the cost of Operating Expenses using any one of the following methods or any combination of the following methods, and Tenant hereby agrees that the following methods of allocation are reasonable: (a) by multiplying the cost of all Operating Expenses by a fraction, the numerator of which is the number of square feet of rentable space in the Premises and the denominator of which is the number of square feet of rentable space in all buildings in the Project; or (b) with respect to an Operating Expense attributable solely to one of the Buildings in which the Premises is located, requiring Tenant to pay that portion of the cost of the Operating Expense that is obtained by multiplying such cost by a fraction, the numerator of which is the number of square feet of rentable space of the Premises in that Building and the denominator of which is the number of square feet of rentable space in that Building or (c) or with respect to an Operating Expense attributable solely to certain tenant’s in a Building in which the Premises is located, requiring Tenant to pay that portion of the cost of the Operating Expense that is obtained by multiplying such cost by a fraction, the numerator of which is the number of square feet of rentable space in the Premises in that Building and the denominator of which is the number of square feet of rentable space occupied by the tenants in that Building to whom the Operating Expense is attributable.

 

6.5Audits.  If Tenant disputes the amount set forth in the Statement, Tenant shall have the right, at Tenant's sole expense, not later than ninety (90) days following receipt of such Statement, to review Landlord's books and records using a member of Tenant’s finance department with respect to the calendar year which is the subject of the Statement.  In addition, if Tenant disputes the amount set forth in the Statement, Tenant shall have the right, at Tenant's sole expense, not later than ninety (90) days following receipt of such Statement, to cause Landlord's books and records with respect to the calendar year which is the subject of the Statement to be audited by a certified public accountant mutually acceptable to Landlord and Tenant (an “Accountant”).  The audit shall take place at the offices of Landlord where its books and records are located at a mutually convenient time during Landlord's regular business hours.  If the audit is performed by a mutually acceptable Accountant, Tenant's Percentage Share of Operating Expenses shall be appropriately adjusted based upon the results of such audit, and the results of such audit shall be final and binding upon Landlord and Tenant.  Tenant shall have no right to conduct an audit or to give Landlord notice that it desires to conduct an audit at any time Tenant is in material default under the Lease continuing beyond any notice and cure period.  The accountant conducting the audit shall be compensated on an hourly basis and shall not be compensated based upon a percentage of overcharges it discovers.  No subtenant shall have any right to conduct an audit, and no assignee shall conduct an audit for any period during which such assignee was not in possession of the Premises.  Tenant's right to undertake an audit with respect to any calendar year shall expire ninety (90) days after Tenant's receipt of the Statement for such calendar year, and such Statement shall be final and binding upon Tenant and shall, as between the parties, be conclusively deemed correct, at the end of such ninety (90) day period, unless prior thereto Tenant shall have given Landlord written notice of its intention to audit Operating Expenses using an Accountant for the calendar year which is the subject of the Statement.  If Tenant gives Landlord notice of its intention to audit Operating Expenses using an Accountant, it must commence such audit within sixty (60) days after such notice is delivered to Landlord, and the audit must be completed within one hundred twenty (120) days after such notice is delivered to Landlord.  If Tenant does not commence and complete the audit within such periods, the Statement which Tenant elected to audit shall be deemed final and binding upon Tenant and shall, as between the parties, be conclusively deemed correct.  Tenant agrees that the results of any Operating Expense audit shall be kept strictly confidential by Tenant and shall not be disclosed to any other person or entity.  If as a result of an audit, it is determined that Landlord has overstated the Operating Expenses owed by Tenant on a Statement by more than [*] of the actual Operating Expenses owed by Tenant, Landlord shall reimburse Tenant for the reasonable out of pocket costs Tenant paid to unrelated third parties for the performance of the audit.

 

7.Security deposit.  Tenant shall deliver to Landlord at the time it executes this Lease the security deposit set forth in Section 1.12 as security for Tenant's faithful performance of Tenant's obligations hereunder.  If Tenant fails to pay Base Rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Lease, Landlord may use all or any portion of said deposit for the payment of any Base Rent or other charge due hereunder, to pay any other sum to which Landlord may become obligated by reason of Tenant's default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby.  If Landlord so uses or applies all or any portion of said deposit, Tenant shall within ten (10) days after written demand therefore deposit cash with Landlord in an amount sufficient to restore said deposit to its full amount.  Landlord shall not be required to keep said security deposit separate from its general accounts.  If Tenant performs all of Tenant's obligations hereunder, said deposit, or so much thereof as has not heretofore been applied by Landlord, shall be returned, without payment of interest or other amount for its use, to Tenant (or, at Landlord's option, to the last assignee, if any, of Tenant's interest hereunder) at the expiration of the term hereof, and after Tenant has vacated the Premises.  No trust relationship is created herein between Landlord and Tenant with respect to said security deposit.  Tenant acknowledges that the security deposit is not an advance payment of any kind or a measure of Landlord's damages in the event of Tenant's default.  

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Tenant hereby waives the provisions of any law which is inconsistent with this section including, but not limited to, Section 1950.7 of the California Civil Code. 

 

8.Utilities. 

 

8.1payment.  Tenant shall pay for all water, gas, electricity, telephone, sewer, sprinkler services, refuse and trash collection and other utilities and services used on the Premises, together with any taxes, penalties, surcharges or the like pertaining thereto.  At Landlord’s option, Tenant shall (a) contract directly with the applicable public utility for such services, (b) Landlord shall pay the cost of such services and Tenant shall reimburse Landlord for such costs as part of Operating Expenses or (c) Landlord shall pay the cost of such services and Tenant shall reimburse Landlord for such costs based on Landlord’s estimate of Tenant’s consumption, as reasonably determined by Landlord.  Tenant agrees to limit use of water and sewer for normal restroom use, and nothing herein contained shall impose upon Landlord any duty to provide sewer or water usage for other than normal restroom usage.  If some or all of the electricity used by Tenant is not separately metered by and paid directly by Tenant to a public utility company (such electricity is hereinafter referred to as “Landlord Electricity”), Landlord shall have the right, but not the obligation, to install separate meters or other measuring devices (e.g. E-Mon D-Mon meters) to measure Tenant’s use of Landlord Electricity.  Landlord shall have the right to estimate the amount of Landlord Electricity used by Tenant using a methodology selected by Landlord, in Landlord’s reasonable discretion. Tenant acknowledges and agrees that Landlord’s calculation of the cost of Landlord Electricity used in the Premises will not produce the exact actual cost of the Landlord Electricity used in the Premises, and that Landlord’s estimate of the Landlord Electricity Cost shall nevertheless be final and binding on Tenant.  From time to time Landlord shall have the right to notify Tenant of the cost of Landlord Electricity and Tenant shall thereafter pay such cost within ten (10) days after receiving Landlord’s notice.  Landlord's failure to bill Tenant for its Landlord Electricity for any given period shall not constitute Landlord's waiver of its right to collect such amount at a later date or otherwise prejudice Landlord's rights hereunder.

 

8.2Interruptions.  Tenant agrees that Landlord shall not be liable to Tenant for its failure to furnish water, gas, electricity, telephone, sewer, refuse and trash collection or any other utility services or building services when such failure is occasioned, in whole or in part, by repairs, replacements or improvements, by any strike, lockout or other labor trouble, by inability to secure electricity, gas, water, telephone service or other utility at the Project, by any accident, casualty or event arising from any cause whatsoever, including the negligence of Landlord, its employees, agents and contractors, by act, negligence or default of Tenant or any other person or entity, or by any other cause, and such failures shall never be deemed to constitute an eviction or disturbance of Tenant's use and possession of the Premises or relieve Tenant from the obligation of paying rent or performing any of its obligations under this Lease.  Furthermore, Landlord shall not be liable under any circumstances for loss of property or for injury to, or interference with, Tenant's business, including, without limitation, loss of profits, however occurring, through or in connection with or incidental to a failure to furnish any such services or utilities.  Landlord may comply with voluntary controls or guidelines promulgated by any governmental entity relating to the use or conservation of energy, water, gas, light or electricity or the reduction of automobile or other emissions without creating any liability of Landlord to Tenant under this Lease. Notwithstanding anything in this Section 8.2 to the contrary, if (a) the Premises, or a material portion of the Premises, is made untenantable for a period in excess of [*] after written notice to Landlord as a result of an interruption of essential utility services, such as electricity, telephone/telecommunication service, fire protection or water, that is a result or Landlord’s negligence or willful misconduct or is otherwise within Landlord’s reasonable control and (b) Tenant is unable to, and does not, conduct its normal business operations in all or any material portion of the Premises as a result thereof, then Tenant shall be entitled to abatement of Base Rent payable hereunder during the period beginning after the [*]of service failure and ending on the day the service has been restored; provided, however, that (i) the foregoing conditional abatement of Base Rent shall not apply if the interruption of such utility service is a result of Tenant’s (or Tenant Parties (as defined below)) negligence, willful misconduct or breach of this Lease or for any other reason outside Landlord’s reasonable control and (ii) such abatement shall be in proportion to the portion of the Premises which Tenant is unable to use and does not use.

 

8.3.Alternative Utility Providers.  If permitted by applicable laws, Landlord shall have the right at any time and from time to time during the term of this Lease to either contract for service from a different company or companies (each such company referred to as an "Alternate Service Provider") other than the company or companies presently providing electrical service for the Project (the "Electric Service Provider") or continue to contract for service from the Electric Service Provider, at Landlord's sole discretion.  Tenant agrees to cooperate with Landlord, the Electric Service Provider, and an Alternate Service Provider at all times and, as reasonably necessary, shall allow Landlord, the Electric Service Provider, and any Alternate Service Provider reasonable access to the Building's electric lines, feeders, risers, wiring and any other machinery within the Premises.

 

8.4Energy Use.  Landlord shall have the right to require Tenant to provide Landlord with copies of bills from electricity, natural gas or similar energy providers (collectively, “Energy Providers”) Tenant receives from Energy Providers relating to Tenant’s energy use at the Premises (“Energy Bills”) within ten (10) days after Landlord’s written request.  

 

8.5(intentionally omitted)

 

8.6(intentionally omitted)  

 

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8.7Intrabuilding Network Cabling.  Landlord shall have no obligation to provide Tenant with any INC, and any INC shall be installed by Tenant at Tenant’s sole cost and expense.  The Building's minimum point of entry for telephone service ("MPOE"), the INC risers and the telephone terminal rooms located on each floor of the Building may only be accessed with Landlord's prior consent and by contractors approved by Landlord, in Landlord's reasonable discretion.  Landlord shall have the right to approve in its sole discretion the amount, location and method of installation of any INC installed by Tenant.  Landlord makes no representation or warranty concerning the condition of any existing INC, and Landlord shall have no liability to Tenant arising out of the condition of any INC inside or outside of the Premises.  Tenant shall be responsible for any loss, cost, damage, liability and expense (including attorneys' fees) arising out of or related to the installation, maintenance, repair and replacement of INC.

 

8.8Premises Janitorial Services.  Tenant shall provide, at its sole cost and expense, janitorial service to the Premises five days per week, and Landlord shall have no obligation to provide such services.  Landlord shall have the right in its reasonable discretion to approve the janitorial company selected by Tenant and the scope of the services provided by the janitorial company.  Tenant’s janitorial company shall comply with all of Landlord’s rules and regulations relating to contractors operating in the Building including, but not limited to, insurance requirements and security requirements.  If Tenant’s janitorial company violates Landlord’s rules and regulations such a violation shall constitute a breach of this Lease by Tenant, and in addition to any other right or remedy available to Landlord, Landlord shall have the right to require Tenant to hire a new janitorial company.  Notwithstanding that Tenant pays its own janitorial costs, janitorial costs for the common areas of the Building and Project may be included in Operating Expenses.

 

8.9Abatement of Rent.  In the event that Tenant is prevented from using, and does not use, the Premises or any portion thereof, for [*] (the "Eligibility Period") as a result of any repair, maintenance or alteration performed by Landlord to the Premises after the Commencement Date, which substantially interferes with Tenant's use of the Premises, or any failure to provide services or access to the Premises due to Landlord's default, then Tenant's rent shall be abated or reduced, as the case may be, after expiration of the Eligibility Period for such time that Tenant continues to be so prevented from using, and does not use, the Premises or a portion thereof, in the proportion that the rentable area of the portion of the Premises that Tenant is prevented from using, and does not use, bears to the total rentable area of the Premises. However, in the event that Tenant is prevented from conducting, and does not conduct, its business in any portion of the Premises for a period of time in excess of the Eligibility Period, and the remaining portion of the Premises is not sufficient to allow Tenant to effectively conduct its business therein, and if Tenant does not conduct its business from such remaining portion, then for such time after expiration of the Eligibility Period during which Tenant is so prevented from effectively conducting its business therein, the rent for the entire Premises shall be abated; provided, however, if Tenant reoccupies and conducts its business from any portion of the Premises during such period, the rent allocable to such reoccupied portion, based on the proportion that the rentable area of such reoccupied portion of the Premises bears to the total rentable area of the Premises, shall be payable by Tenant from the date such business operations commence.  To the extent Tenant shall be entitled to abatement of rent because of damage or destruction pursuant to Section 14 or a taking pursuant to Section 15, then the terms of this Section 8.9 shall not be applicable.

 

9.Real and Personal Property Taxes.

 

9.1Payment of Taxes.  Tenant shall pay Real Property Taxes as part of Operating Expenses.

 

9.2Definition of Real Property Tax.  As used herein, the term "Real Property Taxes" shall include any form of real estate tax or assessment, general, special, ordinary or extraordinary, improvement bond or bonds imposed on the Project or any portion thereof by any authority having the direct or indirect power to tax, including any city, county, state or federal government, or any school, agricultural, sanitary, fire, street, drainage or other improvement district thereof, as against any legal or equitable interest of Landlord in the Project or in any portion thereof.  Real Property Taxes shall not include (a) franchise, income, inheritance, documentary transfer, gift or state income taxes, (b) any penalty or fee imposed solely as a result of Landlord’s failure to pay taxes when due, or (c) any items specifically excluded from Operating Expenses under Section 6.2.

 

9.3Personal Property Taxes.  Tenant shall pay prior to delinquency all taxes assessed against and levied upon trade fixtures, furnishings, equipment and all other personal property of Tenant contained in the Premises or related to Tenant's use of the Premises.  If any of Tenant's personal property shall be assessed with Landlord's real or personal property, Tenant shall pay to Landlord the taxes attributable to Tenant within ten (10) days after receipt of a written statement from Landlord setting forth the taxes applicable to Tenant's property.

 

9.4Reassessments.  From time to time Landlord may challenge the assessed value of the Project as determined by applicable taxing authorities and/or Landlord may attempt to cause the Real Property Taxes to be reduced on other grounds.  If Landlord is successful in causing the Real Property Taxes to be reduced or in obtaining a refund, rebate, credit or similar benefit (hereinafter collectively referred to as a "Reduction"), Landlord shall, to the extent practicable, credit the Reduction(s) to Real Property Taxes for the calendar year to which a Reduction applies and recalculate the Real Property Taxes owed by Tenant for that year based on the reduced Real Property Taxes.  All costs incurred by Landlord in connection with obtaining and/or processing the Real Property Tax reductions (e.g., consulting fees, accounting fees etc.) may be included in Operating Expenses or deducted from the Reduction.  Landlord shall have the right to reasonably compensate a person or entity it employs to obtain a Reduction by giving such person or entity a percentage of any Reduction obtained.

 

10.Insurance.

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10.1Insurance-Tenant. 

 

(a)Tenant shall obtain and keep in force during the term of this Lease a commercial general liability policy of insurance with coverages acceptable to Landlord, in Landlord's reasonable discretion, which, by way of example and not limitation, protects Tenant and Landlord (as an additional insured) against claims for bodily injury, personal injury and property damage based upon, involving or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto.  Such insurance shall be on an occurrence basis providing coverage in an amount not less than [*] per occurrence and not less than [*] in the aggregate with an "Additional Insured-Managers and Landlords of Premises Endorsement" and contain the "Amendment of the Pollution Exclusion" for damage caused by heat, smoke or fumes from a hostile fire.  The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an "insured contract" for the performance of Tenant's indemnity obligations under this Lease. 

 

(b)Tenant shall obtain and keep in force during the term of this Lease “Causes of Loss – Special Form” extended coverage property insurance (previously known as “all risk” property insurance) with coverages acceptable to Landlord, in Landlord's reasonable discretion.  Said insurance shall be written on a one hundred percent (100%) replacement cost basis on Tenant's personal property, all tenant improvements installed at the Premises by Landlord or Tenant, Tenant's trade fixtures and other property.  By way of example, and not limitation, such policies shall provide protection against any peril included within the classification "fire and extended coverage,” against vandalism and malicious mischief, theft and sprinkler leakage.  Tenant’s policy shall include endorsements to insure Tenant against losses to valuable papers, records and computer equipment and to compensate Tenant for the cost of recovering lost data.  To the extent that Tenant’s policy covers tenant improvements to the Premises, Landlord shall be a loss payee on such policy.  Tenant shall also obtain earthquake insurance if such insurance is then customarily required for similar commercial buildings located in Santa Clara, California (or the surrounding metropolitan area) that are of comparable size, type and quality of the Premises, and if the Project is in Flood Zone A or V, Tenant shall obtain flood insurance, and the terms of such insurance policies shall be reasonably acceptable to Landlord.

 

(c) If customarily required for tenants of similar commercial buildings engaged in similar use of premises as Tenant’s use of the Premises, Tenant shall obtain and keep in force during the term of this Lease insurance for pollution liability and clean-up costs with coverages acceptable to Landlord, in Landlord's reasonable discretion, which by way of example and not limitation, protects against liability for cleanup costs, bodily injury and property damage, defense costs and contractual liability.  Such insurance shall provide coverage of not less [*] per occurrence and [*] in the aggregate.

 

(d)Tenant shall, at all times during the term hereof, maintain the following insurance with coverages reasonably acceptable to Landlord: (i) workers' compensation insurance as required by applicable law, (ii) employers liability insurance with limits of at least [*] per occurrence, (iii) automobile liability insurance for owned, non-owned and hired vehicles with limits of at least [*] per occurrence and (iv) business interruption and extra expense insurance.  In addition to the insurance required in (i), (ii), (iii) and (iv) above, Landlord shall have the right to require Tenant to increase the limits of its insurance and/or obtain such additional insurance as is customarily required by landlords owning similar real property in the geographical area of the Project.

 

(e)Tenant shall have the right to provide insurance coverage which it is obligated to carry pursuant to the terms of this Lease under a blanket insurance policy, provided such blanket policy expressly affords coverage for the Premises and Landlord as required by this Lease and shall always be available for claims made by Landlord and such coverages shall not be reduced due to claims made under the blanket policy with respect to other property owned or leased by Tenant.

 

10.2Insurance-Landlord. 

 

(a)Landlord shall obtain and keep in force a policy of general liability insurance with coverage against such risks and in such amounts as Landlord deems advisable insuring Landlord against liability arising out of the ownership, operation and management of the Project.

 

(b)Landlord shall also obtain and keep in force during the term of this Lease a policy or policies of insurance covering loss or damage to the Project in the amount of the replacement cost thereof (excluding foundations and similar items), as determined by Landlord from time to time.  The terms and conditions of said policies, their deductibles and the perils and risks covered thereby shall be determined by Landlord, from time to time, in Landlord's sole discretion.  By way of example, and not limitation, Landlord may purchase flood and/or earthquake insurance.  In addition, at Landlord's option, Landlord shall obtain and keep in force, during the term of this Lease, a policy of rental interruption insurance, with loss payable to Landlord, which insurance shall, at Landlord's option, also cover all Operating Expenses.  Tenant will not be named as an additional insured in any insurance policies carried by Landlord and shall have no right to any proceeds therefrom.  The policies purchased by Landlord shall contain such deductibles as Landlord may determine.  Tenant shall pay at Tenant's sole expense any increase in the property insurance premiums for the Project over what was payable immediately prior to the increase to the 

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extent the increase is specified by Landlord's insurance carrier as being caused by the nature of Tenant's occupancy or any act or omission of Tenant.

 

10.3Insurance Policies.  Tenant shall deliver to Landlord certificates of the insurance policies required under Section 10.1 concurrently with Tenant’s execution of this Lease using an ACORD 28 form or a similar form approved by Landlord.  Tenant's insurance policies shall not be cancelable or subject to reduction of coverage or other modification except after thirty (30) days prior written notice to Landlord.  Tenant shall, at least thirty (30) days prior to the expiration of such policies, furnish Landlord with renewals thereof.  Tenant's insurance policies shall be issued by insurance companies authorized to do business in the state in which the Project is located, and said companies shall maintain during the policy term a "General Policyholder's Rating" of at least A-:VII and a financial rating of at least "Class X" (or such other rating as may be required by any lender having a lien on the Project) as set forth in the most recent edition of "Best Insurance Reports.”  All insurance obtained by Tenant shall be primary to and not contributory with any similar insurance carried by Landlord, whose insurance shall be considered excess insurance only.  Landlord, Landlord’s property manager and lender(s), shall be included as additional insureds under Tenant’s commercial general liability policy, [the pollution liability policy] and under the Tenant’s excess or umbrella policy, if any, using ISO additional insured endorsement CG 20 11 or a substitute providing equivalent coverage.  Tenant's insurance policies shall not include deductibles in excess of [*].

 

10.4Waiver of Subrogation.  Landlord waives any and all rights of recovery against Tenant and Tenant’s employees and agents for or arising out of damage to, or destruction of, the Project to the extent that Landlord's insurance policies then in force insure against such damage or destruction (or to the extent of what would have been covered had Landlord maintained the insurance required to be carried under this Lease) and permit such waiver.  Tenant waives any and all rights of recovery against Landlord and Landlord's employees and agents for or arising out of damage to, or destruction of, the Project to the extent that Tenant's insurance policies then in force insure against such damage or destruction (or to the extent of what would have been covered had Tenant maintained the insurance required to be carried under this Lease) and permit such waiver. Tenant shall cause the insurance policies it obtains in accordance with Section 10.1 relating to property damage to provide that the insurance company waives all right of recovery by subrogation against Landlord in connection with any liability or damage covered by Tenant's insurance policies.  Landlord shall cause the insurance policies it obtains in accordance with Section 10.2 relating to property damage to provide that the insurance company waives all right of recovery by subrogation against Tenant in connection with any damage covered by such property insurance policies. This provision is intended to waive fully, and for the benefit of the parties hereto, any rights and/or claims which might give rise to a right of subrogation in favor of any insurance carrier.

 

10.5Coverage.  Landlord makes no representation to Tenant that the limits or forms of coverage specified above or approved by Landlord are adequate to insure Tenant's property or Tenant's obligations under this Lease, and the limits of any insurance carried by Tenant shall not limit Tenant's obligations or liability under any indemnity provision included in this Lease or under any other provision of this Lease.

 

11.Landlord's repairs.  

 

11.1Generally.  Landlord shall maintain in good condition, at Landlord's expense, only the structural elements of the roof of the Building (excluding the roof membrane which shall be paid for as provided by Section 11.2), the structural soundness of the foundation of the Building and the structural elements of the exterior walls of the Building.  Tenant shall reimburse Landlord for the cost of any maintenance, repair or replacement of the foregoing necessitated by Tenant's misuse, negligence and alterations to the Premises or any breach of its obligations under this Lease.  By way of example, and not limitation, the term "exterior walls" as used in this section shall not include windows, glass or plate glass, doors or overhead doors, special store fronts, dock bumpers, dock plates or levelers, or office entries.  Tenant shall immediately give Landlord written notice of any repair required by Landlord pursuant to this section, after which Landlord shall have a reasonable time in which to complete the repair.  Nothing contained in this section shall be construed to obligate Landlord to seal or otherwise maintain the surface of any foundation, floor or slab. Tenant expressly waives the benefits of any statute now or hereafter in effect which would otherwise afford Tenant the right to make repairs at Landlord's expense or to terminate this Lease because of Landlord's failure to keep the Premises in good order, condition and repair.

 

11.2Roof Membranes.  Landlord shall maintain, repair and if necessary replace the roof membranes of the 3101 Building and the 3131 Building (collectively, the “Roofs”).  Tenant’s Percentage Share of the cost of repairing and maintaining the Roofs shall not exceed [*].  If Tenant’s Percentage Share of the cost of the repair and maintenance of the Roofs exceeds [*], Tenant shall have no obligation to pay Tenant’s Percentage Share of such costs to the extent they exceed [*].  Notwithstanding the foregoing, any repairs or maintenance necessitated by Tenant’s negligence or misuse shall be paid entirely by Tenant and such amounts shall not be taken into consideration when calculating whether Tenant’s Percentage Share of repairing and maintain the Roofs has exceeded [*].  

 

11.3Common Areas.  Subject to the other terms and conditions of this Lease, Landlord shall maintain, repair and if necessary replace the Common Areas.  The cost of the maintenance, repair and replacement of the Common Areas shall be paid by Tenant as part of Operating Expenses.  

 

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11.4Server and Laboratory Areas.  Nothing contained in this Lease shall be interpreted to obligate Landlord to repair or maintain any computer server area or laboratory area in the Premises, and Tenant shall be solely responsible for the repair and maintenance of any server area or laboratory area including, but not limited to, any HVAC, electrical and plumbing associated with a server or laboratory area.

 

12.Tenant's repairs.

 

12.1Obligations of Tenant.  Subject to Section 12.2 below, Tenant shall, at its sole cost and expense, keep and maintain all parts of the Premises (except those listed as Landlord's responsibility in Section 11 above) in good and sanitary condition, promptly making all necessary repairs and replacements, including but not limited to, windows, glass and plate glass, doors, skylights, any special store front or office entry, walls and finish work, floors and floor coverings, heating and air conditioning systems, dock boards, bumpers, plates, seals, levelers and lights, plumbing work and fixtures (including periodic backflow testing), electrical systems, lighting facilities and bulbs, sprinkler systems, alarm systems, fire detection systems, termite and pest extermination, sidewalks, landscaped areas, fencing, tenant signage and regular removal of trash and debris. Tenant shall notify Landlord in writing prior to making any repair or performing any maintenance pursuant to this section, and Landlord shall have the right to reasonably approve the contractor Tenant shall use to make any repair or to perform any maintenance on the roof, heating, ventilation and air conditioning systems ("HVAC"), plumbing systems, electrical systems, sprinkler systems, fire alarm systems or fire detection systems located at the Premises.  Tenant shall not paint or otherwise change the exterior appearance of the Premises without Landlord's prior written consent, which may be given or withheld in Landlord's sole discretion.  The cost of maintenance and repair of any common party wall (any wall, divider, partition or any other structure separating the Premises from any adjacent premises occupied by other tenants) shall be shared equally by Tenant and the tenant occupying the adjacent premises; provided, however, if Tenant damages a party wall the entire cost of the repair shall be paid by Tenant, at Tenant's sole expense; and, provided further, that if another occupant damages a party wall Tenant shall have no obligation to pay any expense for the repair.  Tenant shall not damage any party wall or disturb the integrity and support provided by any party wall. If Tenant fails to keep the Premises in good condition and repair, Landlord may, but shall not be obligated to, make any necessary repairs.  If Landlord makes such repairs, Landlord may bill Tenant for the cost of the repairs as additional rent, and said additional rent shall be payable by Tenant within ten (10) days after demand by Landlord.  

 

12.2Performance of Work by Landlord.  Notwithstanding Tenant's obligation to keep the HVAC units, sprinkler systems, fire alarm systems, fire detection systems and exterior walls of the Premises in good condition and repair, at Landlord’s option, Landlord shall employ contractors to perform all repairs, maintenance and replacements of the HVAC units, sprinkler systems, fire alarm systems, fire detection systems and exterior walls of the Premises.  The items described in the previous sentence that Landlord will cause to be repaired, maintained and replaced are hereinafter referred to as the "Landlord Maintenance Items."  Landlord Maintenance Items shall not include HVAC units installed by Tenant or which exclusively serve computer server or similar areas or laboratory areas in the Premises (“Tenant HVAC Units”), and Tenant shall at all times be solely responsible for the maintenance, repair and replacement of all Tenant HVAC Units, at Tenant’s sole cost and expense.  In addition, Landlord Maintenance Items shall not include sprinkler systems, fire alarm systems and fire detection systems installed by Tenant in any laboratory or similar area in the Premises, (“Tenant Fire Systems”), and Tenant shall at all times be solely responsible for the maintenance, repair and replacement of all Tenant Fire Systems, at Tenant’s sole cost and expense. Tenant shall reimburse Landlord as additional rent for all costs Landlord incurs in performing the Landlord Maintenance Items within ten (10) days after written demand by Landlord.  Landlord shall determine in its sole discretion the scope and timing of the performance of such Landlord Maintenance Items, and Tenant shall not perform such Landlord Maintenance Items. Landlord's maintenance of the exterior walls of the Premises shall include the right, but not the obligation, of Landlord to paint from time to time all or some of the exterior walls, canopies, doors, windows, gutters, handrails and other exterior parts of the Premises with colors selected by Landlord, and Tenant shall reimburse Landlord as provided above for all costs incurred by Landlord in painting such items.  If the Premises contains landscaped areas ("Landscaped Areas"), Landlord shall maintain the Landscaped Areas, and Tenant shall reimburse Landlord for all costs incurred by Landlord in maintaining the Landscaped Areas within ten (10) days after written demand by Landlord; provided, however, Landlord shall have the right to estimate the monthly cost of maintaining the Landscaped Areas, and Tenant shall pay such amount to Landlord as additional rent each month at the same time Tenant pays Base Rent. Tenant shall immediately give Landlord written notice of any repair or maintenance required by Landlord pursuant to this section, after which Landlord shall have a reasonable time in which to complete such repair or maintenance.  Landlord shall have the right, but not the obligation, to include the cost of Landlord Maintenance Items and the cost of the maintenance of Landscaped Areas in Operating Expenses, and Tenant shall then pay Tenant's Percentage Share of such costs as determined by Landlord.  Landlord shall have the right at any time, and from time to time, to elect upon written notice to Tenant to have Tenant perform some or all of the Landlord Maintenance Items and/or the maintenance of the Landscaped Areas, in which event Tenant shall employ contractors reasonably approved by Landlord to perform such work and shall pay for all such work at Tenant's sole cost and expense, all in accordance with the requirements of Section 12.1.

 

12.3Maintenance Contracts.  Landlord shall enter into regularly scheduled preventative maintenance/service contracts for some or all of the following: the HVAC units servicing the Premises (not including any Tenant HVAC Units), the sprinkler, fire alarm and fire detection systems servicing the Premises, backflow testing for the plumbing servicing the Premises and for the roof membrane of the Premises (the "Maintenance Contracts").  The Maintenance Contracts shall include maintenance services satisfactory to Landlord, in Landlord's sole discretion. Tenant shall reimburse Landlord for the cost of the Maintenance Contracts within ten (10) days after written demand by Landlord; provided, however, Landlord shall have the right to estimate the monthly cost of the Maintenance Contracts, and Tenant shall pay such amount to Landlord as additional rent 

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each month at the same time Tenant pays Base Rent. Landlord shall have the right, but not the obligation, to include the cost of Maintenance Contracts in Operating Expenses, and Tenant shall then pay Tenant's Percentage Share of such costs as determined by Landlord.  Landlord shall have the right at any time, and from time to time, to elect upon written notice to Tenant to have Tenant purchase some or all of the Maintenance Contracts (other than the maintenance contract for the roof membrane), in which event Tenant shall purchase such contracts from persons designated or approved by Landlord and shall pay for such Maintenance Contracts at Tenant's sole cost and expense.

 

13.Alterations and Surrender.

 

13.1Consent of Landlord.  “Alterations” shall include, but are not limited to, improvements, additions, utility installations or repairs made by Tenant or its agents and contractors in, on or about the Premises or the Project.  Except for Permitted Alterations (as defined below), Tenant shall not make any Alterations to the Premises without the prior written approval of Landlord, which shall not be unreasonably withheld or delayed.  Provided Tenant gives Landlord not less than fifteen (15) days advance written notice of a Permitted Alteration (a “Permitted Alteration Notice”) and Tenant’s compliance with Landlord’s requirements relating to construction at the Project, Tenant shall have the right to make Permitted Alterations without Landlord’s consent.  A Permitted Alterations Notice shall include a detailed description of the Permitted Alteration, the approximate date the Permitted Alteration will commence and be completed and the approximate cost of the Permitted Alteration.  A “Permitted Alteration” shall mean an Alteration to the inside of the Premises (e.g., paint and carpet, communication systems, telephone and computer system wiring) that does not (i) involve the expenditure of more than [*], (ii) affect the exterior appearance of the Building or the roof, (iii) affect the Building’s electrical, plumbing, HVAC, life, fire safety or similar Building systems or the structural elements of the Building, (iv) affect the Common Areas or parking areas or (v) materially adversely affect any other tenant of the Project.  At the expiration of the term, Landlord may require the removal of any Alterations installed by Tenant and the restoration of the Premises and the Project to their prior condition, at Tenant's expense if, at the time of Landlord's consent, Landlord  did not agree in writing that Tenant would not be obligated to remove the Alterations.  Within ten (10) days after Tenant provides to Landlord a written notice requesting Landlord’s decision concerning the removal of proposed Alterations (a “Tenant Notice”), Landlord shall respond to Tenant’s request.  If Landlord fails to respond to Tenant’s request within ten (10) days after Landlord receives a Tenant Notice, Tenant may give Landlord a second written notice (a “Second Notice”) again requesting Landlord’s decision concerning the removal of the Alterations.  The Second Notice shall expressly state that Landlord’s failure to respond to the Second Notice within five (5) business days will be deemed Landlord’s election pursuant to this Section 13.1 of the Lease not to require Tenant to remove the Alterations at the end of the term of this Lease.  If Landlord fails to respond to Tenant’s Second Notice within such five (5) business day period, Landlord shall be deemed to have elected not to require Tenant to remove the Alterations at the end of the term of this Lease.  If, as a result of any Alteration made by Tenant, Landlord is obligated to comply with the Americans With Disabilities Act or any other law or regulation, and such compliance requires Landlord to make any improvement or Alteration to any portion of the Project, as a condition to Landlord's consent, Landlord shall have the right to require Tenant to pay to Landlord prior to the construction of any Alteration by Tenant the entire cost of any improvement or alteration Landlord is obligated to complete by such law or regulation.  Should Landlord permit Tenant to make its own Alterations, Tenant shall use only such architect and contractor as has been reasonably approved by Landlord, and Landlord may require Tenant to provide to Landlord, at Tenant's sole cost and expense, a lien and completion bond in an amount equal to one and one-half times the estimated cost of such Alterations, to insure Landlord against any liability for mechanic's and materialmen's liens and to insure completion of the work.  In addition, Tenant shall pay to Landlord a fee equal to the lesser of (i) the actual amount Landlord pays to its property manager to supervise such Alterations or (ii) [*] to compensate Landlord for the overhead and other costs it incurs in reviewing the plans for the Alterations and in monitoring the construction of the Alterations (the “Landlord Fee”).  If Landlord incurs architectural, engineering or other consultant’s fees in evaluating such Alterations, Tenant shall reimburse Landlord for these fees in addition to the Landlord Fee.  If Tenant proposes Alterations to Landlord but subsequently elects not to construct the Alterations, and Landlord has incurred costs in reviewing Tenant’s proposed Alterations (e.g., architect’s, engineer’s or property management fees), Tenant shall reimburse Landlord for the reasonable costs incurred by Landlord within ten (10) days after written demand.  Should Tenant make any Alterations without the prior approval of Landlord, or use a contractor not expressly approved by Landlord, Landlord may, at any time during the term of this Lease, require that Tenant remove all or part of the Alterations and return the Premises to the condition it was in prior to the making of the Alterations.  In the event Tenant makes any Alterations, Tenant agrees to obtain or cause its contractor to obtain, prior to the commencement of any work, "builders all risk" insurance in an amount reasonably approved by Landlord, workers compensation insurance and any other insurance reasonably requested by Landlord.

 

13.2Permits.  Any Alterations in or about the Premises that Tenant shall desire to make shall be presented to Landlord in written form, with plans and specifications which are sufficiently detailed to obtain a building permit, if a building permit is required.  If Landlord consents to an Alteration and the Alteration requires a building permit, the consent shall be deemed conditioned upon Tenant acquiring a building permit from the applicable governmental agencies, furnishing a copy thereof to Landlord prior to the commencement of the work, and compliance by Tenant with all conditions of said permit in a prompt and expeditious manner.  Tenant shall provide Landlord with as-built plans and specifications for any Alterations made to the Premises.

 

13.3Mechanics Liens.  Tenant shall pay, when due, all claims for labor or materials furnished to or for Tenant at or for use in the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or the Project, or any interest therein.  If Tenant shall, in good faith, contest the validity of any such lien, Tenant shall furnish to Landlord a surety bond satisfactory to Landlord in an amount equal to not less than one and one-half times the amount of such 

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contested lien claim indemnifying Landlord against liability arising out of such lien or claim.  Such bond shall be sufficient in form and amount to free the Project from the effect of such lien.  In addition, Landlord may require Tenant to pay Landlord's reasonable attorneys' fees and costs incurred as a result of any such lien.

 

13.4Notice.  Tenant shall give Landlord not less than ten (10) days' advance written notice prior to the commencement of any work in the Premises by Tenant, and Landlord shall have the right to post notices of non-responsibility in or on the Premises or the Project.

 

13.5Surrender. Subject to Landlord's right to require removal or to elect ownership as hereinafter provided, all Alterations made by Tenant to the Premises shall be the property of Tenant, but shall be considered to be a part of the Premises.  Unless Landlord gives Tenant written notice of its election not to become the owner of the Alterations at the end of the term of this Lease, such Alterations shall become the property of Landlord at the end of the term of this Lease.  Unless otherwise agreed by Landlord pursuant to Section 13.1 at the time the approval of an Alteration is requested by Tenant, Landlord may require that some or all Alterations be removed prior to the end of the term of this Lease and that any damages caused by such removal be repaired at Tenant's sole expense.  On the last day of the term hereof, or on any sooner termination, Tenant shall surrender the Premises (including, but not limited to, all doors, windows, floors and floor coverings, skylights, heating and air conditioning systems, dock boards, truck doors, dock bumpers, plumbing work and fixtures, electrical systems, lighting facilities, sprinkler systems, fire detection systems and nonstructural elements of the exterior walls and foundation (collectively the "Elements of the Premises")) to Landlord in the same condition it was in on the Original Premises Commencement Date and the Expansion Premises Commencement Date, as applicable, ordinary wear and tear, casualty damage and damages caused by acts of God excepted, clean and free of debris and Tenant's personal property, trade fixtures and equipment.  Tenant's personal property shall include all computer wiring and cabling installed by Tenant.  Provided, however, if Landlord has not elected to have Tenant remove the Alterations, Tenant shall leave the Alterations at the Premises in good condition and repair, ordinary wear and tear excepted.  Tenant shall repair any damage to the Premises occasioned by the installation or removal of Tenant's trade fixtures, furnishings and equipment. Damage to or deterioration of any Element of the Premises or any other item Tenant is required to repair or maintain at the Premises shall not be deemed ordinary wear and tear if the same could have been prevented by good maintenance practices.  If the Premises are not surrendered at the expiration of the term or earlier termination of this Lease in accordance with the provisions of this section, at Landlord's option, Tenant shall continue to be responsible for the payment of Base Rent and all other amounts due under this Lease until the Premises are so surrendered in accordance with said provisions.  Tenant shall indemnify, defend and hold Landlord harmless from and against any and all damages, expenses, costs, losses or liabilities arising from any delay by Tenant in so surrendering the Premises including, without limitation, any damages, expenses, costs, losses or liabilities arising from any claim against Landlord made by any succeeding tenant or prospective tenant founded on or resulting from such delay and losses and damages suffered by Landlord due to lost opportunities to lease any portion of the Premises to any such succeeding tenant or prospective tenant, together with, in each case, actual attorneys' fees and costs.

 

13.6Failure of Tenant to Remove Property.  If this Lease is terminated due to the expiration of its term or otherwise, and Tenant fails to remove its property, in addition to any other remedies available to Landlord under this Lease, and subject to any other right or remedy Landlord may have under applicable law, Landlord may remove any property of Tenant from the Premises and store the same elsewhere at the expense and risk of Tenant.

 

13.7Electric Vehicle Charging Stations Installed by Tenant.  Under certain circumstances Section 1952.7 of the California Civil Code (“Section 1952.7”) may permit Tenant to install electric vehicle charging stations (“Tenant Charging Stations”) in the Project’s parking area.  In the event Section 1952.7 does permit Tenant to install Tenant Charging Stations and Tenant elects to install Tenant Charging Stations, the Section of the Rules and Regulations attached hereto that is entitled “Electric Vehicle Charging Stations” shall apply to the Tenant Charging Stations.

 

13.8Cabling.  Landlord shall have the right to require Tenant to (i) remove any telecommunications or other cabling installed by Tenant in the Premises as part of the original tenant improvements (whether constructed by Landlord or Tenant) or at later times during the term of the Lease (collectively, “Cabling”) or (ii) leave all or part of the Cabling.    If Landlord requires Tenant to remove some or all of the Cabling and Tenant fails to do so prior to the last day of the term or any sooner termination, Landlord may, but shall not be obligated to, remove such Cabling and, in this event, Tenant shall reimburse Landlord for all costs Landlord incurs in removing the such cable within ten (10) days after written demand.

 

14.Damage and Destruction.

 

14.1Effect of Damage or Destruction.  If all or part of the Project is damaged by fire, earthquake, flood, explosion, the elements, riot, the release or existence of Hazardous Materials (as defined below) or by any other cause whatsoever (hereinafter collectively referred to as "Casualty Damages"), but the Casualty Damages are not material (as defined in Section 14.2 below), Landlord shall repair the Casualty Damages to the Project as soon as is reasonably possible, and this Lease shall remain in full force and effect.  If all or part of the Project is destroyed or materially damaged (as defined in Section 14.2 below), Landlord shall have the right, in its sole and complete discretion, to repair or to rebuild the Project or to terminate this Lease.  Landlord shall within [*] after the discovery of such material damage or destruction notify Tenant in writing of Landlord's intention to repair or to rebuild or to terminate this Lease.  Tenant shall in no event be entitled to compensation or damages on account of annoyance or inconvenience in making any repairs, or on account of construction, or on account of Landlord's election to terminate this Lease.  Notwithstanding the foregoing, if Landlord shall elect to rebuild or 

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repair the Project after material damage or destruction, but in good faith determines that the Premises cannot be substantially repaired within [*] after the date of the discovery of the material damage or destruction, without payment of overtime or other premiums, and the damage to the Project will render the entire Premises unusable during said [*] period, Landlord shall notify Tenant thereof in writing at the time of Landlord's election to rebuild or repair, and Tenant shall thereafter have a period of fifteen (15) days within which Tenant may elect to terminate this Lease, upon thirty (30) days' advance written notice to Landlord.  Tenant's termination right described in the preceding sentence shall not apply if the damage was caused by the intentional acts of Tenant or its employees, agents, contractors or invitees.  Failure of Tenant to exercise said election within said fifteen (15) day period shall constitute Tenant's agreement to accept delivery of the Premises under this Lease whenever tendered by Landlord, provided Landlord thereafter pursues reconstruction or restoration diligently to completion subject to delays caused by Force Majeure Events.  If Landlord is unable to repair the damage to the Premises or the Project during such [*] period due to Force Majeure Events, the [*] period shall be extended by the period of delay caused by the Force Majeure Events; provided, however, in no event shall the [*] period be extended by more than thirty (30) days due to a Force Majeure Event.  A "Force Majeure Event" shall mean fire, earthquake, weather delays or other acts of God, strikes, boycotts, war, riot, insurrection, embargoes, shortages of equipment, labor or materials, delays in issuance of governmental permits or approvals, or any other cause beyond the reasonable control of Landlord.  Subject to Section 14.3 below, if Landlord or Tenant terminates this Lease in accordance with this Section 14.1, Tenant shall continue to pay all Base Rent, Operating Expenses and other amounts due hereunder which arise prior to the date of termination.  Tenant shall also have the right to terminate this Lease if damage occurs to the Premises during the last twelve (12) months of the Lease term, such damage renders a substantial portion of the Premises unusable, and such damage cannot be substantially repaired within fifteen (15) days.  Tenant’s termination right described in the previous sentence shall be exercised by providing Landlord with written notice within fifteen (15) days after Landlord notifies Tenant that the damage has occurred and cannot be repaired within fifteen (15) days of the occurrence of the damage. 

 

14.2Definition of Material Damage.  Damage to the Project shall be deemed material if, in Landlord's reasonable judgment, the uninsured cost of repairing the damage will exceed [*].  If insurance proceeds are available to Landlord in an amount which is sufficient to pay the entire cost of repairing all of the damage to the Project, the damage shall be deemed material if the cost of repairing the damage exceeds [*].  Damage to the Project shall also be deemed material if (a) the Project cannot be rebuilt or repaired to substantially the same condition it was in prior to the damage due to laws or regulations in effect at the time the repairs will be made, (b) the holder of any mortgage or deed of trust encumbering the Project requires that insurance proceeds available to repair the damage in excess of [*]be applied to the repayment of the indebtedness secured by the mortgage or the deed of trust, or (c) the damage occurs during the last [*] months of the Lease term.

 

14.3Abatement of Rent.  In the event that Tenant is prevented from using, and does not use, the Premises or any portion thereof as a result of damage to the Premises, and the damage was not caused by intentional acts of Tenant or its employees, agents, contractors or invitees, then Tenant's Base Rent and Tenant's Share of Operating Expenses shall be abated or reduced, as the case may be, for such time that Tenant continues to be so prevented from using, and does not use, the Premises or a portion thereof, in the proportion that the rentable area of the portion of the Premises that Tenant is prevented from using, and does not use, bears to the total rentable area of the Premises.

 

14.4Tenant's Acts.  If such damage or destruction occurs as a result of the intentional acts of Tenant or Tenant's employees, agents, contractors or invitees, and the proceeds of insurance which are actually received by Landlord are not sufficient to pay for the repair of all of the damage, Tenant shall pay, at Tenant's sole cost and expense, to Landlord upon demand, the difference between the cost of repairing the damage and the insurance proceeds received by Landlord.

 

14.5Tenant's Property.  Landlord shall not be liable to Tenant or its employees, agents, contractors, invitees or customers for loss or damage to merchandise, tenant improvements, fixtures, automobiles, furniture, equipment, computers, files or other property (hereinafter collectively "Tenant's property") located at the Project.  Tenant shall repair or replace all of Tenant's property at Tenant's sole cost and expense.  Tenant acknowledges that it is Tenant's sole responsibility to obtain adequate insurance coverage to compensate Tenant for damage to Tenant's property.

 

14.6Waiver.  Landlord and Tenant hereby waive the provisions of any present or future statutes which relate to the termination of leases when leased property is damaged or destroyed and agree that such event shall be governed by the terms of this Lease.

 

15.Condemnation. If any portion of the Premises or the Project are taken under the power of eminent domain, or sold under the threat of the exercise of said power (all of which are herein called "condemnation"), this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever first occurs; provided that if [*]or more of the Premises is taken by such condemnation and said taking lasts for [*]or more, Tenant shall have the option, to be exercised only in writing within thirty (30) days after Landlord shall have given Tenant written notice of such taking (or in the absence of such notice, within thirty (30) days after the condemning authority shall have taken possession), to terminate this Lease as of the date the condemning authority takes such possession.  If a taking lasts for less than [*], Tenant's rent shall be abated during said period but Tenant shall not have the right to terminate this Lease.  If Tenant does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that all Base Rent and Tenant’s Percentage Share of Operating Expenses shall be reduced in the proportion that the usable 

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floor area of the Premises taken bears to the total usable floor area of the Premises.  Common Areas taken shall be excluded from the Common Areas usable by Tenant and no reduction of Base Rent shall occur with respect thereto or by reason thereof.  Landlord shall have the option in its sole discretion to terminate this Lease as of the taking of possession by the condemning authority, by giving written notice to Tenant of such election within thirty (30) days after receipt of notice of a taking by condemnation of any part of the Premises or the Project.  Any award for the taking of all or any part of the Premises or the Project under the power of eminent domain or any payment made under threat of the exercise of such power shall be the property of Landlord, whether such award shall be made as compensation for diminution in value of the leasehold, for good will, for the taking of the fee, as severance damages, or as damages for tenant improvements; provided, however, that Tenant shall be entitled to any separate award for loss of or damage to Tenant's removable personal property, removable Alterations made to the Premises and paid for by Tenant and for moving expenses.  In the event that this Lease is not terminated by reason of such condemnation, and subject to the requirements of any lender that has made a loan to Landlord encumbering the Project, Landlord shall to the extent of severance damages received by Landlord in connection with such condemnation, repair any damage to the Project caused by such condemnation except to the extent that Tenant has been reimbursed therefor by the condemning authority.  This section, not general principles of law or California Code of Civil Procedure Sections 1230.010 et seq., shall govern the rights and obligations of Landlord and Tenant with respect to the condemnation of all or any portion of the Project.

 

16.Assignment and Subletting.

 

16.1Landlord's Consent Required.  Tenant shall not voluntarily or by operation of law assign, transfer, hypothecate, mortgage, sublet, or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises (hereinafter collectively a "Transfer"), without Landlord's prior written consent, which shall not be unreasonably withheld.  Landlord shall respond to Tenant's written request for consent hereunder within thirty (30) days after Landlord's receipt of the written request from Tenant.  Any attempted Transfer without such consent shall be void and shall constitute a default and breach of this Lease.  Tenant's written request for Landlord's consent shall include, and Landlord's thirty (30) day response period referred to above shall not commence, unless and until Landlord has received from Tenant, all of the following information: (a) financial statements for the proposed assignee or subtenant prepared in accordance with generally accepted accounting principles for the lesser of (i) the past three (3) years or (ii) the time period the assignee or subtenant has been in existence, (b) federal tax returns for the proposed assignee or subtenant for the lesser of (i) the past two (2) years or (ii) the time period the assignee or subtenant has been in existence, (c) a detailed description of the business the assignee or subtenant intends to operate at the Premises, (d) the proposed effective date of the assignment or sublease, (e) a copy of the proposed sublease or assignment agreement which includes all of the terms and conditions of the proposed assignment or sublease, (f) a detailed description of any ownership or commercial relationship between Tenant and the proposed assignee or subtenant, (g) a detailed description of any Alterations the proposed assignee or subtenant desires to make to the Premises, and (h) a Hazardous Materials Disclosure Certificate substantially in the form of Exhibit D attached hereto (the "Transferee HazMat Certificate").  If the obligations of the proposed assignee or subtenant will be guaranteed by any person or entity, Tenant's written request shall not be considered complete until the information described in (a) and (b) of the previous sentence has been provided with respect to each proposed guarantor. "Transfer" shall also include the transfer (a) if Tenant is a corporation, and Tenant's stock is not publicly traded over a recognized securities exchange, of more than twenty five percent (25%) of the voting stock of such corporation during the term of this Lease (whether or not in one or more transfers) or the dissolution, merger or liquidation of the corporation, or (b) if Tenant is a partnership, limited liability company, limited liability partnership or other entity, of more than twenty five percent (25%) of the profit and loss participation in such partnership or entity  during the term of this Lease (whether or not in one or more transfers) or the dissolution, merger or liquidation of the partnership, limited liability company, limited liability partnership or other entity.  If Tenant is a limited or general partnership (or is comprised of two or more persons, individually or as co-partners), Tenant shall not be entitled to change or convert to (i) a limited liability company, (ii) a limited liability partnership or (iii) any other entity which possesses the characteristics of limited liability without the prior written consent of Landlord, which consent may be given or withheld in Landlord's sole discretion.  Tenant's sole remedy in the event that Landlord shall wrongfully withhold consent to or disapprove any assignment or sublease shall be to obtain an order by a court of competent jurisdiction that Landlord grant such consent; in no event shall Landlord be liable for damages with respect to its granting or withholding consent to any proposed assignment or sublease.  If Landlord shall exercise any option to recapture the Premises, or shall deny a request for consent to a proposed assignment or sublease, Tenant shall indemnify, defend and hold Landlord harmless from and against any and all losses, liabilities, damages, costs and claims that may be made against Landlord by the proposed assignee or subtenant, or by any brokers or other persons claiming a commission or similar compensation in connection with the proposed assignment or sublease.

 

16.2Standard For Approval.  Landlord shall not unreasonably withhold its consent to a Transfer provided that Tenant has complied with each and every requirement, term and condition of this Section 16.  Tenant acknowledges and agrees that each requirement, term and condition in this Section 16 is a reasonable requirement, term or condition.  It shall be deemed reasonable for Landlord to withhold its consent to a Transfer if any requirement, term or condition of this Section 16 is not complied with or: (a) the Transfer would cause Landlord to be in violation of its obligations under another lease or agreement to which Landlord is a party;  (b) in Landlord's reasonable judgment, a proposed assignee or subtenant has a materially smaller net worth than Tenant had on the date this Lease was entered into with Tenant or is materially less able financially to pay the rents due under this Lease as and when they are due and payable (provided, however, that so long as Tenant will remain in existence and primarily liable under this Lease from and after a proposed Transfer, then Landlord shall take into account both Tenant’s and the proposed transferee’s creditworthiness); (c) a proposed assignee's or subtenant's business will impose a burden on the Project's parking facilities, Common Areas or utilities that is greater than the burden imposed by Tenant, in Landlord's 

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reasonable judgment; (d) the terms of a proposed assignment or subletting will allow the proposed assignee or subtenant to exercise a right of renewal, right of expansion, right of first offer, right of first refusal or similar right held by Tenant; (e) a proposed assignee or subtenant refuses to enter into a written assignment agreement or sublease, reasonably satisfactory to Landlord, which provides that it will abide by and assume all of the terms and conditions of this Lease for the term of any assignment or sublease and containing such other terms and conditions as Landlord reasonably deems necessary;  (f) the use of the Premises by the proposed assignee or subtenant is not permitted by this Lease;  (g) any guarantor of this Lease refuses to consent to the Transfer or to execute a written agreement reaffirming the guaranty;  (h) Tenant is in default as defined in Section 17 at the time of the request continuing beyond any notice and cure period; (i) if requested by Landlord, the assignee or subtenant refuses to sign a non-disturbance and attornment agreement in favor of Landlord's lender; (j) Landlord has sued or been sued by the proposed assignee or subtenant or has otherwise been involved in a legal dispute with the proposed assignee or subtenant; (k)  the assignee or subtenant is involved in a business which is materially different than the then-current standards of the Project; (l) the proposed assignee or subtenant is an existing tenant of the Project and Landlord has space within the Project that may meet the prospective tenant’s requirements or is a person or entity then negotiating with Landlord for the lease of space in the Project and Landlord has space within the Project that may meet the prospective tenant’s requirements, (m) the assignee or subtenant is a governmental or quasi-governmental entity or an agency, department or instrumentality of a governmental or quasi-governmental agency; (n) the assignee or subtenant will use, store or handle Hazardous Materials in or about the Premises of a type, nature, quantity not acceptable to Landlord, in Landlord's sole discretion; or (o) the assignee or subtenant is a person or entity to whom Landlord has agreed not to lease space in the Project pursuant to a lease with another tenant.

 

16.3Additional Terms and Conditions.  The following terms and conditions shall be applicable to any Transfer:

 

(a)Regardless of Landlord's consent, no Transfer shall release Tenant from Tenant's obligations hereunder or alter the primary liability of Tenant to pay the rent and other sums due Landlord hereunder and to perform all other obligations to be performed by Tenant hereunder or release any guarantor from its obligations under its guaranty. 

 

(b)Landlord may accept rent from any person other than Tenant pending approval or disapproval of an assignment or subletting.

 

(c)Neither a delay in the approval or disapproval of a Transfer, nor the acceptance of rent, shall constitute a waiver or estoppel of Landlord's right to exercise its rights and remedies for the breach of any of the terms or conditions of this Section 16. 

 

(d)The consent by Landlord to any Transfer shall not constitute a consent to any subsequent Transfer by Tenant or to any subsequent or successive Transfer by an assignee or subtenant.  However, Landlord may consent to subsequent Transfers or any amendments or modifications thereto without notifying Tenant or anyone else liable on the Lease and without obtaining their consent, and such action shall not relieve such persons from liability under this Lease.

 

(e)In the event of any default under this Lease, Landlord may proceed directly against Tenant, any guarantors or anyone else responsible for the performance of this Lease, including any subtenant or assignee, without first exhausting Landlord's remedies against any other person or entity responsible therefor to Landlord, or any security held by Landlord. 

 

(f)Landlord's written consent to any Transfer by Tenant shall not constitute an acknowledgment that no default then exists under this Lease nor shall such consent be deemed a waiver of any then-existing default.

 

(g)The discovery of the fact that any financial statement relied upon by Landlord in giving its consent to an assignment or subletting was materially false shall, at Landlord's election, render Landlord's consent null and void.

 

(h)Landlord shall not be liable under this Lease or under any sublease to any subtenant.

 

(i)No assignment or sublease may be modified or amended without Landlord's prior written consent.

 

(j)Any assignee of, or subtenant under, this Lease shall, by reason of accepting such assignment or entering into such sublease, be deemed, for the benefit of Landlord, to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Tenant during the term of said assignment or sublease, other than such obligations as are contrary or inconsistent with provisions of an assignment or sublease to which Landlord has specifically consented in writing.

 

(k)At Landlord's request, Tenant shall deliver to Landlord, Landlord's standard consent to assignment or consent to sublease agreement, as applicable, executed by Tenant, the assignee or the subtenant, as applicable.

 

16.4Additional Terms and Conditions Applicable to Subletting.  The following terms and conditions shall apply to any subletting by Tenant of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein:

 

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(a)Tenant hereby absolutely and unconditionally assigns and transfers to Landlord all of Tenant's interest in all rentals and income arising from any sublease entered into by Tenant, and Landlord may collect such rent and income and apply same toward Tenant's obligations under this Lease; provided, however, that until a default shall occur in the performance of Tenant's obligations under this Lease, Tenant may receive, collect and enjoy the rents accruing under such sublease.  Landlord shall not, by reason of this or any other assignment of such rents to Landlord nor by reason of the collection of the rents from a subtenant, be deemed to have assumed or recognized any sublease or to be liable to the subtenant for any failure of Tenant to perform and comply with any of Tenant's obligations to such subtenant under such sublease, including, but not limited to, Tenant's obligation to return any security deposit.  Tenant hereby irrevocably authorizes and directs any such subtenant, upon receipt of a written notice from Landlord stating that a default exists in the performance of Tenant's obligations under this Lease, to pay to Landlord the rents due as they become due under the sublease.  Tenant agrees that such subtenant shall have the right to rely upon any such statement and request from Landlord, and that such subtenant shall pay such rents to Landlord without any obligation or right to inquire as to whether such default exists and notwithstanding any notice or claim from Tenant to the contrary.

 

(b)In the event Tenant shall default in the performance of its obligations under this Lease and such default continues beyond any notice and cure period, Landlord, at its option and without any obligation to do so, may require any subtenant to attorn to Landlord, in which event Landlord shall undertake the obligations of Tenant under such sublease from the time of the exercise of said option to the termination of such sublease; provided, however, Landlord shall not be liable for any prepaid rents or security deposit paid by such subtenant to Tenant or for any other prior defaults of Tenant under such sublease. 

 

16.5Transfer Premium from Assignment or Subletting.  Landlord shall be entitled to receive from Tenant (as and when received by Tenant) as an item of additional rent one-half of all amounts received by Tenant from the subtenant or assignee in excess of the amounts payable by Tenant to Landlord hereunder (the “Transfer Premium”).  The Transfer Premium shall be reduced by the reasonable brokerage commissions, tenant improvement costs and legal fees actually paid by Tenant in order to assign the Lease or to sublet all or a portion of the Premises.  "Transfer Premium" shall mean all Base Rent, additional rent or other consideration of any type whatsoever payable by the assignee or subtenant in excess of the Base Rent and additional rent payable by Tenant under this Lease, but excluding market value of the sale of any furniture, fixtures or equipment.  If less than all of the Premises is subleased, for purposes of calculating the Transfer Premium, the Base Rent and the additional rent due under this Lease shall be allocated to the subleased premises on a per-rentable-square-foot basis (e.g., if one-half of the Premises is subleased, for purposes of determining the amount of the Transfer Premium, one-half of the Base Rent and additional rent due under this Lease would be allocated to the subleased premises, and this amount would be subtracted from the base rent, additional rent and other monies payable to Tenant under the sublease).  "Transfer Premium" shall also include, but not be limited to, key money and bonus money paid by the assignee or subtenant to Tenant in connection with such Transfer, and any payment in excess of fair-market value for services rendered by Tenant to the assignee or subtenant or for assets, fixtures, inventory, equipment or furniture transferred by Tenant to the assignee or subtenant in connection with such Transfer.  Landlord and Tenant agree that the foregoing Transfer Premium is reasonable.

 

16.6Landlord's Option to Recapture Space.  For purposes of this Section, a “Recapture Event” shall mean any one of the following: (a) Tenant desires to assign this Lease to a person or entity other than an Affiliate (as defined below), or (b) Tenant desires to sublease substantially all of the Premises located in the 3101 Building for substantially all of the remaining term of this Lease.  “Recapture Space” shall mean the portion of the Premises that is the subject of a Recapture Event.  For example, if Tenant desires to sublease substantially all of the first and second floor of the 3101 Building for substantially all of the remaining term of this Lease, the Recapture Space would be first and the second floor of the 3101 Building. In the event of a Recapture Event, notwithstanding anything to the contrary contained in this Section 16, Landlord shall have the option, by giving written notice to Tenant within twenty (20) days after receipt of any request by Tenant to engage in a Recapture Event, to terminate this Lease with respect to the Recapture Space as of the date thirty (30) days after Landlord's election.  In the event of a recapture by Landlord, if this Lease shall be canceled with respect to less than the entire Premises, the Base Rent, Tenant’s Percentage Share of Operating Expenses and the number of parking spaces Tenant may use shall be adjusted on the basis of the number of rentable square feet retained by Tenant in proportion to the number of rentable square feet contained in the original Premises, and this Lease as so amended shall continue thereafter in full force and effect, and upon request of either party, the parties shall execute written confirmation of same.  If Landlord recaptures only a portion of the Premises, it shall construct and erect at its sole cost such partitions as may be required to sever the space to be retained by Tenant from the space recaptured by Landlord.  Landlord may, at its option, lease any recaptured portion of the Premises to the proposed subtenant or assignee or to any other person or entity without liability to Tenant.  Tenant shall not be entitled to any portion of the profit, if any, Landlord may realize on account of such termination and reletting.  Tenant acknowledges that the purpose of this section is to enable Landlord to receive profit in the form of higher rent or other consideration to be received from an assignee or subtenant, to give Landlord the ability to meet additional space requirements of other tenants of the Project and to permit Landlord to control the leasing of space in the Project.  Tenant acknowledges and agrees that the requirements of this section are commercially reasonable and are consistent with the intentions of Landlord and Tenant.

 

16.7Landlord's Expenses.  In the event Tenant shall assign this Lease or sublet the Premises or request the consent of Landlord to any Transfer, then Tenant shall pay (a) [*] to Landlord to compensate Landlord for its internal administrative costs in processing the request plus (b) Landlord's reasonable out-of-pocket costs and expenses incurred in connection therewith, including, but not limited to, attorneys', architects', accountants', engineers' or other consultants' fees; provided, however, Landlord shall not be entitled to recover more than [*] with respect to any one Transfer.  

 

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16.8Assignment and Subleasing – Affiliated Entity.  Notwithstanding anything to the contrary contained in this Section 16, an assignment of the Lease or sublease of all or any portion of the Premises to any entity which controls or is controlled by Tenant or which acquires all or substantially all of the assets of Tenant or which is the surviving entity resulting from a merger or consolidation of Tenant (in each such case, an "Affiliate"), shall not require Landlord's consent under Section 16.1, provided that at least thirty (30) days prior to such assignment or sublease (i) Tenant provides Landlord with reasonable evidence that the successor to Tenant has a tangible net worth computed in accordance with generally accepted accounting principles consistently applied (and excluding goodwill and other intangible assets) that is sufficient to meet the obligations of Tenant under the Lease, and that is at least equal to the tangible net worth of Tenant (A) immediately prior to such merger, consolidation or sale or (B) on the Commencement Date, whichever is greater; (ii) Tenant notifies Landlord in writing of any such assignment or sublease and provides Landlord with evidence that such assignment or sublease is a Transfer permitted by this section; (iii) prior to the date an assignment or sublease will take effect, the assignee or sublessee and Tenant shall enter into Landlord's standard consent to sublease agreement or consent to assignment agreement (the "Transfer Agreements"), (iv) any guarantors of Tenant’s obligations under the Lease execute an agreement satisfactory to Landlord reaffirming that their obligations under the guaranty will continue after the assignment of the Lease to an Affiliate and (v) subject to the limitation set forth in Section 16.7 of the Lease, Tenant shall pay the reasonable costs and expenses (including legal fees) incurred by Landlord in confirming that the assignment or sublease meets the requirements of this section and in preparing any Transfer Agreement.  Whether or not an assignment or sublease to an Affiliate is made pursuant to the terms of this section, Tenant shall not be relieved of its obligations under this Lease.  Sections 16.5 and 16.6 of the Lease shall not apply to assignments or subleases to Affiliates.

 

17.Default; Remedies.

 

17.1Default by Tenant.  Landlord and Tenant hereby agree that the occurrence of any one or more of the following events is a default by Tenant under this Lease and that said default shall give Landlord the rights described in Section 17.2.  Landlord or Landlord's authorized agent shall have the right to execute and to deliver any notice of default, notice to pay rent or quit or any other notice Landlord gives Tenant.

 

(a)Tenant's failure to make any payment of Base Rent, Tenant's Percentage Share of Operating Expenses or any other payment required to be made by Tenant hereunder, as and when due, where such failure shall continue for a period of five (5) business days after written notice thereof from Landlord to Tenant.  In the event that Landlord serves Tenant with a notice to pay rent or quit pursuant to applicable unlawful detainer statutes, such notice shall also constitute the notice required by this Section 17.1(a).

 

(b)The abandonment of the Premises by Tenant (as statutorily defined under California law) coupled with the nonpayment of rent, in which event Landlord shall not be obligated to give any notice of default to Tenant.

 

(c)The failure of Tenant to comply with any of its obligations under Sections 25, 26 and 28 where Tenant fails to comply with its obligations or fails to cure any earlier breach of such obligation within ten (10) days following written notice from Landlord to Tenant.  In the event Landlord serves Tenant with a notice to quit or any other notice pursuant to applicable unlawful detainer statutes, said notice shall also constitute the notice required by this Section 17.1(c).   

 

(d)The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant (other than those referenced in Sections 17.1(a), (b) and (c), above), where such failure shall continue for a period of thirty (30) days after written notice thereof from Landlord to Tenant; provided, however, that if the nature of Tenant's nonperformance is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said thirty (30) day period and thereafter diligently pursues such cure to completion.  In the event that Landlord serves Tenant with a notice to quit or any other notice pursuant to applicable unlawful detainer statutes, said notice shall also constitute the notice required by this Section 17.1(d).

 

(e)(i) The making by Tenant or any guarantor of Tenant's obligations hereunder of any general arrangement or general assignment for the benefit of creditors; (ii) Tenant or any guarantor becoming a "debtor" as defined in 11 U.S.C. 101 or any successor statute thereto (unless, in the case of a petition filed against Tenant or guarantor, the same is dismissed within sixty (60) days);  (iii) 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 sixty (60) days; (iv) 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 sixty (60) days; or (v) the insolvency of Tenant.  In the event that any provision of this Section 17.1(e) is unenforceable under applicable law, such provision shall be of no force or effect.

 

(f)The discovery by Landlord that any financial statement, representation or warranty given to Landlord by Tenant, or by any guarantor of Tenant's obligations hereunder, was materially false at the time given.  Tenant acknowledges that Landlord has entered into this Lease in material reliance on such information.

 

(g)If Tenant is a corporation, partnership, limited liability company or similar entity, the dissolution or liquidation of Tenant.

 

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(h)If Tenant's obligations under this Lease are guaranteed: (i) the death of a guarantor, (ii) the termination of a guarantor's liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a guarantor's becoming insolvent or the subject of a bankruptcy filing, (iv) a guarantor's refusal to honor the guaranty, (v) a guarantor's breach of its guaranty obligation on an anticipatory breach basis or (vi) if the guarantor is a corporation, limited liability company or partnership, the dissolution of the guarantor or the termination of the guarantor’s existence.

 

17.2Remedies.  

 

(a)In the event of any default or breach of this Lease by Tenant as described in Section 17.1 (including any notice and cure period), Landlord may, at any time thereafter, with or without notice or demand, and without limiting Landlord in the exercise of any right or remedy which Landlord may have by reason of such default:

 

(i)terminate Tenant's right to possession of the Premises by any lawful means, in which case this Lease and the term hereof shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord.  If Landlord terminates this Lease, Landlord may recover from Tenant (A) the worth at the time of award of the unpaid rent which had been earned at the time of termination; (B) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; (C) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; and (D) any other amount necessary to compensate Landlord for all detriment proximately caused by Tenant's failure to perform its obligations under the Lease or which in the ordinary course of things would be likely to result therefrom, including, but not limited to, the cost of recovering possession of the Premises, expenses of releasing, including necessary renovation and alteration of the Premises, reasonable attorneys' fees, any real estate commissions actually paid by Landlord and the unamortized value of any free rent, reduced rent, tenant improvement allowance or other economic concessions provided by Landlord.  The "worth at time of award" of the amounts referred to in Section 17.2(a)(i)(A) and (B) shall be computed by allowing interest at the lesser of [*] per annum or the maximum interest rate permitted by applicable law.  The worth at the time of award of the amount referred to in Section 17.2(a)(i)(C) shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus [*].  For purposes of this Section 17.2(a)(i), "rent" shall be deemed to be all monetary obligations required to be paid by Tenant pursuant to the terms of this Lease.

 

(ii)maintain Tenant's right of possession, in which event Landlord shall have the remedy described in California Civil Code Section 1951.4 which permits Landlord to continue this Lease in effect after Tenant's breach and abandonment and recover rent as it becomes due.  In the event Landlord elects to continue this Lease in effect, Tenant shall have the right to sublet the Premises or assign Tenant's interest in the Lease subject to the reasonable requirements contained in Section 16 of this Lease and provided further that Landlord shall not require compliance with any standard or condition contained in Section 16 that has become unreasonable at the time Tenant seeks to sublet or assign the Premises pursuant to this Section 17.2(a)(ii).

 

(iii)collect sublease rents (or appoint a receiver to collect such rent) and otherwise perform Tenant's obligations at the Premises, it being agreed, however, that the appointment of a receiver for Tenant shall not constitute an election by Landlord to terminate this Lease.

 

(iv)pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the state in which the Premises are located.

 

(b)No remedy or election hereunder shall be deemed exclusive, but shall, wherever possible, be cumulative with all other remedies at law or in equity.  The expiration or termination of this Lease and/or the termination of Tenant's right to possession of the Premises shall not relieve Tenant of liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term of the Lease or by reason of Tenant's occupancy of the Premises.

 

(c)If Tenant abandons the Premises, Landlord may re-enter the Premises, and such re-entry shall not be deemed to constitute Landlord's election to accept a surrender of the Premises or to otherwise relieve Tenant from liability for its breach of this Lease.  No surrender of the Premises shall be effective against Landlord unless Landlord has entered into a written agreement with Tenant in which Landlord expressly agrees to (i) accept a surrender of the Premises and (ii) relieve Tenant of liability under the Lease.  The delivery by Tenant to Landlord of possession of the Premises shall not constitute the termination of the Lease or the surrender of the Premises.

 

17.3Default by Landlord.  Landlord shall not be in default under this Lease unless Landlord fails to perform obligations required of Landlord within [*] after written notice by Tenant to Landlord, specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord's obligation is such that more than [*] are required for its cure, then Landlord shall not be in default if Landlord commences performance within such [*] period and thereafter diligently pursues the same to completion.  In no event shall Tenant have the right to terminate this Lease as a result of Landlord's default, and Tenant's remedies shall be limited to damages and/or an injunction.  Tenant hereby waives its right to recover consequential damages (including, but not limited to, lost profits) or punitive damages arising out of a Landlord default.  This Lease and the obligations of Tenant hereunder shall not be affected or impaired because Landlord is unable to fulfill any of 

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its obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of a Force Majeure Event, and the time for Landlord's performance shall be extended for the period of any such delay.  Any claim, demand, right or defense by Tenant that arises out of this Lease or the negotiations which preceded this Lease shall be barred unless Tenant commences an action thereon, or interposes a defense by reason thereof, within twelve (12) months after the date of the inaction, omission, event or action that gave rise to such claim, demand, right or defense.

 

17.4Late Charges.  Tenant hereby acknowledges that late payment by Tenant to Landlord of Base Rent, Tenant's Percentage Share of Operating Expenses or other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain.  Such costs include, but are not limited to, processing and accounting charges and late charges which may be imposed on Landlord by the terms of any mortgage or trust deed encumbering the Project.  Accordingly, if any installment of Base Rent, Tenant's Percentage Share of Operating Expenses or any other sum due from Tenant shall not be received by Landlord when such amount shall be due, then, without any requirement for notice or demand to Tenant, Tenant shall immediately pay to Landlord a late charge equal to [*].  The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant.  Acceptance of such late charge by Landlord shall in no event constitute a waiver of Tenant's default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder, including the assessment of interest under Section 17.5.  Notwithstanding anything to the contrary contained herein, Tenant shall be entitled to notice [*].

 

17.5Interest on Past-Due Obligations.  Except as expressly herein provided, any amount due to Landlord that is not paid when due shall bear interest at [*] or the maximum rate permitted by applicable law.  Payment of such interest shall not excuse or cure any default by Tenant under this Lease; provided, however, that interest shall not be payable on late charges incurred by Tenant nor on any amounts upon which late charges are paid by Tenant.

 

17.6Payment of Rent and Security Deposit after Default.  If Tenant fails to pay Base Rent, Tenant's Percentage Share of Operating Expenses, parking charges or any other monetary obligation due hereunder on the date it is due, after Tenant's third failure to pay any monetary obligation on the date it is due, at Landlord's option, all monetary obligations of Tenant hereunder shall thereafter be paid by cashier's check, and Tenant shall, upon demand, provide Landlord with an additional security deposit equal to three (3) multiplied by the monthly Base Rent due on the date of Landlord’s demand.  If Landlord has required Tenant to make said payments by cashier's check or to provide an additional security deposit, Tenant's failure to make a payment by cashier's check or to provide the additional security deposit shall be a default hereunder.

 

18.Landlord's Right to Cure Default; Payments by Tenant.  All covenants and agreements to be kept or performed by Tenant under this Lease shall be performed by Tenant at Tenant's sole cost and expense and without any reduction of rent.  If Tenant shall fail to perform any of its obligations under this Lease, Landlord may, but shall not be obligated to, after three (3) days' prior written notice to Tenant, make any such payment or perform any such act on Tenant's behalf without waiving its rights based upon any default of Tenant and without releasing Tenant from any obligations hereunder.  Tenant shall pay to Landlord, within ten (10) days after delivery by Landlord to Tenant of statements therefore, an amount equal to the expenditures reasonably made by Landlord in connection with the remedying by Landlord of Tenant's defaults pursuant to the provisions of this section.

 

19.Indemnity.  Except to the extent of Damages resulting from the negligence or willful misconduct of Landlord, Tenant hereby agrees to indemnify, defend and hold harmless Landlord and its employees, partners, agents, property managers, lenders and ground lessors (said persons and entities are hereinafter collectively referred to as the "Indemnified Parties” or “Landlord Parties") from and against any and all liability, loss, cost, damage, claims, loss of rents, liens, judgments, penalties, fines, settlement costs, investigation costs, cost of consultants and experts, reasonable attorney’s fees, court costs and other legal expenses, , insurance policy deductibles and other expenses (hereinafter collectively referred to as "Damages") arising out of or related to an Indemnified Matter (as defined below).  For purposes of this section, an "Indemnified Matter" shall mean any matter for which one or more of the Indemnified Parties incurs liability or Damages if the liability or Damages arise out of or involve, directly or indirectly, (a) Tenant's or its employees', agents', contractors', invitees', or subtenants’ (all of said persons or entities are hereinafter collectively referred to as "Tenant Parties") use or occupancy of the Premises or the Project, (b) any activity, work, or thing done, permitted or suffered by Tenant in or about the Premises, (c) the conduct of Tenant’s business, or (d) Tenant's failure to perform any of its obligations under the Lease.  Tenant's obligations hereunder shall include, but shall not be limited to (f) compensating the Indemnified Parties for Damages arising out of Indemnified Matters and (g) providing a defense, with counsel reasonably satisfactory to the Indemnified Party, at Tenant's sole expense, within thirty (30) days after written demand from the Indemnified Party, of any claims, action or proceeding arising out of or relating to an Indemnified Matter whether or not litigated or reduced to judgment and whether or not well founded.    The Indemnified Parties need not first pay any Damages to be indemnified hereunder.    Tenant's obligations under this section shall survive the expiration or termination of this Lease unless specifically waived in writing by Landlord after said expiration or termination.  Notwithstanding anything to the contrary contained in this section, Tenant shall not be obligated to indemnify an Indemnified Party from liability to the extent such liability arises out of the Indemnified Party's negligence, willful misconduct or violation of this Lease.

 

20.Exemption of Landlord from Liability. Tenant hereby agrees that Landlord Parties shall not be liable for injury to Tenant's business or any loss of income therefrom or for loss of or damage to the merchandise, tenant improvements, fixtures, furniture, equipment, computers, files, automobiles, or other property of Tenant, Tenant's employees, agents, contractors or invitees, or any other person in or about the Project, nor shall Landlord Parties be liable for injury to the person of Tenant, 

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Tenant's employees, agents, contractors or invitees, whether such damage or injury is caused by or results from any cause whatsoever including, but not limited to, theft, criminal activity at the Project, negligent security measures, bombings or bomb scares, acts of terrorism, Hazardous Materials, fire, steam, electricity, gas, water or rain, flooding, breakage of pipes, sprinklers, plumbing, air conditioning or lighting fixtures, or from any other cause, whether said damage or injury results from conditions arising upon the Premises or upon other portions of the Project, or from other sources or places, or from new construction or the repair, alteration or improvement of any part of the Project, and regardless of whether the cause of the damage or injury arises out of the active negligence, passive negligence or intentional acts of Landlord Parties.  Landlord Parties shall not be liable for any damages arising from any act or neglect of any employees, agents, contractors or invitees of any other tenant, occupant or user of the Project, nor from the failure of Landlord Parties to enforce the provisions of the lease of any other tenant of the Project.  Tenant, as a material part of the consideration to Landlord hereunder, hereby assumes all risk of damage to Tenant's property or business or injury to persons, in, upon or about the Project arising from any cause, including the active or passive negligence of Landlord Parties, and Tenant hereby waives all claims in respect thereof against Landlord Parties.  Except to the extent covered by Tenant’s insurance and waiver of subrogation provided in the Lease, the limitations on Landlord’s liability contained in this Section 20 shall not apply to injury or damage which results from the negligence or willful misconduct of Landlord, its agents, employees, contractors, subcontractors or assigns; provided, however, in no event shall Landlord be liable to Tenant for consequential damages (including, but not limited to, lost profits).

 

21.Landlord's Liability.  Tenant acknowledges that Landlord shall have the right to transfer all or any portion of its interest in the Project and to assign this Lease to the transferee.  Tenant agrees that in the event of such a transfer Landlord shall automatically be released from all liability under this Lease; and Tenant hereby agrees to look solely to Landlord's transferee for the performance of Landlord's obligations hereunder after the date of the transfer.  Upon such a transfer, Landlord shall, at its option, return Tenant's security deposit to Tenant or transfer Tenant's security deposit to Landlord's transferee and, in either event, Landlord shall have no further liability to Tenant for the return of its security deposit.  Subject to the rights of any lender holding a mortgage or deed of trust encumbering all or part of the Project, Tenant agrees to look solely to Landlord's equity interest in the Project for the collection of any judgment requiring the payment of money by Landlord arising out of (a) Landlord's failure to perform its obligations under this Lease or (b) the negligence or willful misconduct of Landlord, its partners, employees and agents.  No other property or assets of Landlord shall be subject to levy, execution or other enforcement procedure for the satisfaction of any judgment or writ obtained by Tenant against Landlord.  No partner, employee or agent of Landlord shall be personally liable for the performance of Landlord's obligations hereunder or be named as a party in any lawsuit arising out of or related to, directly or indirectly, this Lease and the obligations of Landlord hereunder.  The obligations under this Lease do not constitute personal obligations of the individual partners of Landlord, if any, and Tenant shall not seek recourse against the individual partners of Landlord or their assets.

 

22.Signs.  Tenant shall not make any changes to the exterior of the Premises, install any exterior lights, decorations, balloons, flags, pennants, banners or painting, or erect or install any signs, windows or door lettering, placards, decorations or advertising media of any type which can be viewed from the exterior of the Premises, without Landlord's prior written consent, which may be given or withheld in Landlord's sole discretion.  Upon vacation of the Premises, Tenant shall remove all signs and repair, paint and/or replace the building facia surface to which its signs are attached.  Tenant shall obtain all applicable governmental permits and approvals for signs and exterior treatments.  All signs, decorations, advertising media, blinds, draperies and other window treatment or bars or other security installations visible from outside the Premises shall be subject to Landlord's approval and conform in all respects to Landlord's requirements.

 

23.Parking.  During the term and subject to the rules and regulations attached hereto as Exhibit "C,” as modified by Landlord from time to time (the "Rules"), Tenant shall be entitled to use the number of parking spaces set forth in Section 1.13 in the Common Area parking lot of the Project.  Tenant's parking rights are in common with the parking rights of any other tenants of the Project, and all of Tenant's parking spaces are unreserved parking spaces.  Landlord reserves the right at any time to designate areas in the Common Areas where Tenant may or may not park.  If Tenant commits or allows in the parking lot any of the activities prohibited by the Lease or the Rules, then Landlord shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove or tow away the vehicle involved and charge the cost to Tenant, which cost shall be immediately payable by Tenant upon demand by Landlord.  Tenant's parking rights are the personal rights of Tenant, and Tenant shall not transfer, assign or otherwise convey its parking rights separate and apart from this Lease.  All parking spaces may only be used for parking vehicles no larger than full-size passenger automobiles or pick-up trucks.  Landlord, in addition to its other remedies, shall have the right to remove or tow away any other vehicles.  Landlord shall not be responsible for enforcing Tenant's parking rights against any third parties.  Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant or Tenant's employees, suppliers, shippers, customers or invitees to be loaded, unloaded or parked in areas other than those designated by Landlord for such activities.

 

24.Broker's Fee. Tenant and Landlord each represent and warrant to the other that neither has had any dealings or entered into any agreements with any person, entity, broker or finder other than the persons, if any, listed in Section 1.14, in connection with the negotiation of this Lease, and no other broker, person, or entity is entitled to any commission or finder's fee in connection with the negotiation of this Lease, and Tenant and Landlord each agree to indemnify, defend and hold the other harmless from and against any claims, damages, costs, expenses, attorneys' fees or liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings, actions or agreements of the indemnifying party.  The commission payable to Landlord's broker with respect to this Lease shall be pursuant to the terms of the separate commission agreement in effect between Landlord and Landlord's broker. Landlord's broker shall pay a portion 

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of its commission to Tenant's broker, if so provided in any agreement between Landlord's broker and Tenant's broker.  Nothing in this Lease shall impose any obligation on Landlord to pay a commission or fee to any party other than Landlord's broker.

 

25.Estoppel Certificate.

 

25.1Delivery of Certificate.  Tenant shall from time to time, upon not less than ten (10) business days' prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing certifying such information as Landlord may reasonably request including, but not limited to, the following: (a) that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect), (b) the date to which the Base Rent and other charges are paid in advance and the amounts so payable, (c) that there are not, to Tenant's knowledge, any uncured defaults or unfulfilled obligations on the part of Landlord, or specifying such defaults or unfulfilled obligations, if any are claimed, (d) that all tenant improvements to be constructed by Landlord, if any, have been completed in accordance with Landlord's obligations, and (e) that Tenant has taken possession of the Premises.  Any such statement may be conclusively relied upon by any prospective purchaser or encumbrancer of the Project.

 

25.2Failure to Deliver Certificate.  At Landlord's option, the failure of Tenant to deliver such statement within such time shall constitute a default of Tenant hereunder, or it shall be conclusive upon Tenant that (a) this Lease is in full force and effect, without modification except as may be represented by Landlord, (b) there are no uncured defaults in Landlord's performance, (c) not more than one month's Base Rent has been paid in advance, (d) all tenant improvements to be constructed by Landlord, if any, have been completed in accordance with Landlord's obligations, and (e) Tenant has taken possession of the Premises.

 

26.Financial Information.  So long as Tenant’s stock is publicly traded over a recognized securities exchange Tenant shall have no obligation to provide Landlord with financial information pursuant to this section.  Once Tenant’s stock is no longer publicly traded over a recognized securities exchange or if Tenant assigns this Lease to a person or entity whose stock is not publicly traded on a recognized public securities exchange, this section shall apply to Tenant and/or the assignee.  From time to time, at Landlord's request, but not more often than once in any calendar year, Tenant shall cause the following financial information to be delivered to Landlord, at Tenant's sole cost and expense, upon not less than ten (10) business days' advance written notice from Landlord: (a) a current financial statement for Tenant and Tenant's financial statements for the previous two accounting years, (b) a current financial statement for any guarantor(s) of this Lease and the guarantor'(s) financial statements for the previous two accounting years and (c) such other financial information pertaining to Tenant or any guarantor as Landlord or any lender or purchaser of Landlord may reasonably request.  Notwithstanding the forgoing limitation, Landlord shall have the right at any time to receive the forgoing information if Landlord requests the information in connection with the financing or sale of the Project.  All financial statements shall be prepared in accordance with generally accepted accounting principles consistently applied and, if such is the normal practice of Tenant, shall be audited by an independent certified public accountant.  Tenant hereby authorizes Landlord, from time to time, without notice to Tenant, to obtain a credit report or credit history on Tenant from any credit reporting company.  To the extent Tenant has kept the financial information it provides to Landlord confidential, Landlord shall endeavor to maintain the confidentiality of the information (Landlord shall have the right to provide such information to its employees, property managers, accountants, attorneys, brokers, partners, lenders and prospective purchasers).  If Landlord breaches its obligations under this section, Tenant’s sole and exclusive remedy for such breach shall be to obtain an injunction preventing the dissemination of the financial information by Landlord.  Landlord acknowledges and agrees that due to the unique nature of the financial information, any breach of this section by Landlord would cause irreparable harm to Tenant for which damages are not an adequate remedy and that Tenant shall therefore be entitled to injunctive relief.  In no event shall Landlord be liable to Tenant for damages for Landlord’s breach of its obligations under this section.

 

27.Environmental Matters/Hazardous Materials. 

 

27.1Hazardous Materials Disclosure Certificate.  Prior to executing this Lease, Tenant has delivered to Landlord Tenant's executed initial Hazardous Materials Disclosure Certificate (the "Initial HazMat Certificate"), a copy of which is attached hereto as Exhibit D.  Tenant covenants, represents and warrants to Landlord that the information in the Initial HazMat Certificate is true and correct and accurately describes the use(s) of Hazardous Materials which will be made and/or used on the Premises by Tenant.  Tenant shall, commencing with the date which is one year from the Commencement Date and continuing every year thereafter, deliver to Landlord, upon request, an executed Hazardous Materials Disclosure Certificate (the "HazMat Certificate") describing Tenant's then-present use of Hazardous Materials on the Premises, and any other reasonably necessary documents and information as requested by Landlord.  The HazMat Certificates required hereunder shall be in substantially the form attached hereto as Exhibit D.

 

27.2Definition of Hazardous Materials.  As used in this Lease, the term “Hazardous Materials” shall mean and include (a) any hazardous or toxic wastes, materials or substances, and other pollutants or contaminants, which are or become regulated by any Environmental Laws (defined below); (b) petroleum, petroleum by-products, gasoline, diesel fuel, crude oil or any fraction thereof; (c) asbestos and asbestos-containing material, in any form, whether friable or non-friable; (d) polychlorinated biphenyls; (e) radioactive materials; (f) lead and lead-containing materials; (g) any other material, waste or substance displaying toxic, reactive, ignitable or corrosive characteristics, as all such terms are used in their broadest sense, and are defined or become defined by any Environmental Law; (h) any materials which cause or threatens to cause a nuisance upon or waste to any portion of the Project or any surrounding property; or poses or threatens to pose a hazard to the health and safety of persons on the Premises, any other portion of the Project or any surrounding property or (i) types of waste 

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described in Section 117690 of California's Health and Safety Code as medical waste and any similar type of waste.  For purposes of this Lease, the term "Hazardous Materials" shall not include nominal amounts of ordinary household cleaners, office supplies and janitorial supplies which are not actionable under any Environmental Laws.

 

27.3Prohibition; Environmental Laws.  Except for normal cleaning supplies and the materials set forth in the Initial HazMat Certificate, Tenant shall not be entitled to use or store any Hazardous Materials on, in, or about any portion of the Premises and the Project without, in each instance, obtaining Landlord's prior written consent thereto.  If Landlord, in its sole discretion, consents to any such usage or storage, then Tenant shall be permitted to use and/or store only those Hazardous Materials that are necessary for Tenant's business and to the extent disclosed in the HazMat Certificate and as expressly approved by Landlord in writing.  Any such usage and storage may only be to the extent of the quantities of Hazardous Materials as specified in the then-applicable HazMat Certificate as expressly approved by Landlord.  In all events such usage and storage must at all times be in full compliance with any and all local, state and federal environmental, health and/or safety-related laws, statutes, orders, standards, courts' decisions, ordinances, rules and regulations (as interpreted by judicial and administrative decisions), decrees, directives, guidelines, permits or permit conditions, currently existing and as amended, enacted, issued or adopted in the future which are or become applicable to Tenant or all or any portion of the Premises (collectively, the "Environmental Laws") and in compliance with the recommendations of Landlord's consultants.  Tenant agrees that any changes to the type and/or quantities of Hazardous Materials specified in the most recent HazMat Certificate may be implemented only with the prior written consent of Landlord, which consent may be given or withheld in Landlord's sole discretion.  Tenant shall not be entitled nor permitted to install any tanks under, on or about the Premises for the storage of Hazardous Materials without the express written consent of Landlord, which may be given or withheld in Landlord's sole discretion.  Landlord shall have the right, in Landlord's sole discretion, at all times during the Term of this Lease to (i) inspect the Premises, (ii) conduct tests and investigations to determine whether Tenant is in compliance with the provisions of this Section 27 or to determine if Hazardous Materials are present in, on or about the Project, (iii) request lists of all Hazardous Materials used, stored or otherwise located on, under or about any portion of the Premises and/or the Common Areas, and (iv) to require Tenant to complete a survey of its use, storage and handling of Hazardous Materials in the Premises, using a form and following procedures reasonably designated by Landlord (the "Survey").  Tenant shall reimburse Landlord for the cost of all such inspections, tests and investigations, and all costs associated with any Survey if Tenant is responsible for any contamination revealed by such Survey.  If as a result of an inspection, test or Survey Landlord determines, in Landlord's reasonable discretion, that Tenant should implement or perform safety, security or compliance measures, Tenant shall within thirty (30) days after written request by Landlord perform such measures, at Tenant's sole cost and expense.  The aforementioned rights granted herein to Landlord and its representatives shall not create (a) a duty on Landlord's part to inspect, test, investigate, monitor or otherwise observe the Premises or the activities of Tenant and Tenant Parties with respect to Hazardous Materials, including without limitation, Tenant's operation, use and any remediation relating thereto, or (b) liability on the part of Landlord and its representatives for Tenant's use, storage, disposal or remediation of Hazardous Materials, it being understood that Tenant shall be solely responsible for all liability in connection therewith.

 

27.4Tenant's Environmental Obligations.  Tenant shall give to Landlord immediate verbal and follow-up written notice of any spills, releases, discharges, disposals, emissions, migrations, removals or transportation of Hazardous Materials on, under or about any portion of the Premises; provided that Tenant has actual, implied or constructive knowledge of such event(s).  Tenant, at its sole cost and expense, covenants and warrants to promptly investigate, clean up, remove, restore and otherwise remediate (including, without limitation, preparation of any feasibility studies or reports and the performance of any and all closures) any spill, release, discharge, disposal, emission, migration or transportation of Hazardous Materials arising from or related to the intentional or negligent acts or omissions of Tenant or Tenant Parties such that the affected portions of the Project and any adjacent property are returned to the condition existing prior to the appearance of such Hazardous Materials.  Any such investigation, clean up, removal, restoration and other remediation shall only be performed after Tenant has obtained Landlord's prior written consent, which consent shall not be unreasonably withheld so long as such actions would not potentially have a material adverse long-term or short-term effect on any portion of the Project.  Notwithstanding the foregoing, Tenant shall be entitled to respond immediately to an emergency without first obtaining Landlord's prior written consent.  Tenant, at its sole cost and expense, shall conduct and perform, or cause to be conducted and performed, all closures as required by any Environmental Laws or any agencies or other governmental authorities having jurisdiction thereof.  If Tenant fails to so promptly investigate, clean up, remove, restore, provide closure or otherwise so remediate, Landlord may, but without obligation to do so, take any and all steps necessary to rectify the same, and Tenant shall promptly reimburse Landlord, upon written demand, for all costs and expenses to Landlord of performing investigation, cleanup, removal, restoration, closure and remediation work.  All such work undertaken by Tenant, as required herein, shall be performed in such a manner so as to enable Landlord to make full economic use of the Premises and other portions of the Project after the satisfactory completion of such work.

 

27.5Environmental Indemnity.  In addition to Tenant's other indemnity obligations under this Lease, Tenant agrees to, and shall, protect, indemnify, defend (with counsel acceptable to Landlord) and hold Landlord and the other Landlord Parties harmless from and against any and all loss, cost, damage, liability or expense (including, without limitation, diminution in value of any portion of the Premises or the Project, damages for the loss of or restriction on the use of rentable or usable space, and from any adverse impact of Landlord's marketing of any space within the Project) arising at any time during or after the term of this Lease in connection with or related to, directly or indirectly, the use, presence, transportation, storage, disposal, migration, removal, spill, release or discharge of Hazardous Materials on, in or about any portion of the Project as a result (directly or indirectly) of the intentional or negligent acts or omissions of Tenant or Tenant Parties.  Neither the written consent of Landlord to the presence, use or storage of Hazardous Materials in, on, under or about any portion of the Project nor the strict compliance by Tenant with all Environmental Laws shall excuse Tenant from its obligations of indemnification pursuant hereto.  

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Tenant shall not be relieved of its indemnification obligations under the provisions of this Section 27.5 due to Landlord's status as either an "owner" or "operator" under any Environmental Laws.

 

27.6Survival.  Tenant's obligations and liabilities pursuant to the provisions of this Section 27 shall survive the expiration or earlier termination of this Lease.  If it is determined by Landlord that the condition of all or any portion of the Project is not in compliance with the provisions of this Lease with respect to Hazardous Materials, including without limitation, all Environmental Laws at the expiration or earlier termination of this Lease, then Landlord may require Tenant to hold over possession of the Premises until Tenant can surrender the Premises to Landlord in the condition in which the Premises existed prior to the appearance of such Hazardous Materials except for reasonable wear and tear, including without limitation, the conduct or performance of any closures as required by any Environmental Laws.  The burden of proof hereunder shall be upon Tenant.  For purposes hereof, the term "reasonable wear and tear" shall not include any deterioration in the condition or diminution of the value of any portion of the Project in any manner whatsoever related to, directly or indirectly, Hazardous Materials.  Any such holdover by Tenant will be with Landlord's consent, will not be terminable by Tenant in any event or circumstance and will otherwise be subject to the provisions of Section 33 of this Lease.

 

27.7No Liability for Acts of Others.  Notwithstanding anything to the contrary contained in this Lease, Tenant shall only be liable pursuant to this Section 27 for the acts of Tenant and Tenant Parties, and Tenant shall not be liable for the acts of persons or entities other than Tenant and Tenant Parties nor shall Tenant be responsible or liable for contamination that existed at the Premises on the Commencement Date or for contamination emanating from neighboring land.

 

28.Subordination.

 

28.1Effect of Subordination.  This Lease, and any Option (as defined below) granted hereby, upon Landlord's written election, shall be subject and subordinate to any ground lease, mortgage, deed of trust or any other hypothecation or security now or hereafter placed upon the Project and to any and all advances made on the security thereof and to all renewals, modifications, consolidations, replacements and extensions thereof.  Notwithstanding such subordination, Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in material default of this Lease beyond any applicable notice and cure period, and so long as Tenant shall pay the rent and observe and perform all of the provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms.  At the request of any mortgagee, trustee or ground lessor, Tenant shall attorn to such person or entity.  If any mortgagee, trustee or ground lessor shall elect to have this Lease and any Options granted hereby prior to the lien of its mortgage, deed of trust or ground lease, and shall give written notice thereof to Tenant, this Lease and such Options shall be deemed prior to such mortgage, deed of trust or ground lease, whether this Lease or such Options are dated prior or subsequent to the date of said mortgage, deed of trust or ground lease or the date of recording thereof.  In the event of the foreclosure of a security device, the new owner shall not (a) be liable for any act or omission of any prior landlord or with respect to events occurring prior to its acquisition of title, except that the new owner shall cure any default of Landlord that is continuing as of the date of the foreclosure within [*] from the date Tenant delivers written notice to the new owner of such continuing default, unless such default is of such a nature to reasonably require more than [*] to cure and then the new owner shall be permitted such additional time as is reasonably necessary to effect such cure, provided such new owner diligently and continuously proceeds to cure such default , (b) be liable for the breach of this Lease by any prior landlord, (c) be subject to any offsets or defenses which Tenant may have against the prior landlord or (d) be liable to Tenant for the return of any security deposit not actually received by such new owner or to the extent any portion of such security deposit has not already been forfeited by, or returned to, Tenant.

 

28.2Execution of Documents.  Tenant agrees to execute and acknowledge any documents Landlord reasonably requests that Tenant execute to effectuate an attornment, a subordination, or to make this Lease or any Option granted herein prior to the lien of any mortgage, deed of trust or ground lease, as the case may be.  Tenant's failure to execute such documents within ten (10) days after written demand shall constitute a default by Tenant hereunder.  Tenant does hereby make, constitute and irrevocably appoint Landlord as Tenant's attorney-in-fact and in Tenant's name, place and stead to execute such documents in accordance with this section.

 

28.3Subordination by Tenant.  As of the date set forth in Section 1.1 above, no mortgages or deeds of trust encumber Landlord's interest in the Project.  Notwithstanding anything to the contrary contained in the Lease, Tenant shall not be obligated to subordinate its interest in the Lease to a future mortgage or deed of trust obtained by Landlord unless the lender provides Tenant with a commercially reasonable nondisturbance agreement.

 

29.Options.

 

29.1Definition.  As used in this Lease, the word "Option" has the following meaning: (1) the right or option to extend the term of this Lease or to renew this Lease, (2) the option or right of first refusal to lease the Premises or the right of first offer to lease the Premises or the right of first refusal to lease other space within the Project or the right of first offer to lease other space within the Project, and (3) the right or option to terminate this Lease prior to its expiration date or to reduce the size of the Premises.  Any Option granted to Tenant by Landlord must be evidenced by a written option agreement attached to this Lease as a rider or addendum or said option shall be of no force or effect.  For purposes of this section, an Option shall also include any Option contained in any subsequent amendment to this Lease.

 

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29.2Options Personal.  Each Option granted to Tenant in this Lease, if any, is personal to the original Tenant and may be exercised only by the original Tenant while occupying the entire Premises and may not be exercised or be assigned, voluntarily or involuntarily, by or to any person or entity other than Tenant, including, without limitation, any permitted transferee as defined in Section 16.  The Options, if any, herein granted to Tenant are not assignable separate and apart from this Lease, nor may any Option be separated from this Lease in any manner, either by reservation or otherwise.  If at any time an Option is exercisable by Tenant, the Lease has been assigned or a sublease exists as to any portion of the Premises, the Option shall be deemed null and void and neither Tenant nor any assignee or subtenant shall have the right to exercise the Option.

 

29.3Multiple Options.  In the event that Tenant has multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Option to extend or renew this Lease has been so exercised.

 

29.4Effect of Default on Options.  Tenant shall have no right to exercise an Option (i) during the time commencing from the date Landlord gives to Tenant a notice of default pursuant to Section 17.1 and continuing until the noncompliance alleged in said notice of default is cured, or (ii) if Tenant is in default of any of the terms, covenants or conditions of this Lease continuing beyond any notice and cure period.  The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Tenant's inability to exercise an Option because of the provisions of this section.

 

29.5Limitations on Options.  Except as set forth in any rider or addendum to this Lease, any options, rights of first refusal or rights of first offer granted hereunder shall be subject and secondary to Landlord's right to first offer and lease any such space to any tenant who is then occupying or leasing such space at the time the space becomes available for leasing and shall be subject and subordinated to any other options, rights of first refusal or rights of first offer previously given to any other person or entity.

 

29.6Guarantees.  Notwithstanding anything to the contrary contained in any rider or addendum to this Lease, Tenant's right to exercise and the effectiveness of an Option is conditioned upon Landlord's receipt from any prior tenant that has not been expressly released from liability under this Lease, and any guarantor of any obligation of Tenant under this Lease, of a written agreement satisfactory to Landlord, in Landlord’s sole discretion, reaffirming such person's obligations under this Lease or the guaranty, as modified by Tenant's exercise of the Option.

 

29.7Notice of Exercise of Option.  Notwithstanding anything to the contrary contained in Section 43, Tenant shall give written notice exercising the Option using certified mail return receipt requested or some other method where the person delivering the package containing the notice obtains a signature of the person accepting the package containing the notice (e.g., by FedEx with the requirement that the FedEx delivery person obtain a signature from the person accepting the package).  It shall be the obligation of Tenant to prove that Landlord received the notice exercising the Option in a timely manner.

 

30.Landlord Reservations.  Landlord shall have the right: (a) to change the name and address of the Project or Building upon not less than one hundred eighty (180) days prior written notice; (b) to permit any tenant the exclusive right to conduct any business as long as such exclusive right does not conflict with any rights expressly given herein; (c) to place signs, notices or displays upon the roof, exterior of the Building or Common Areas of the Project and (d) to, at Tenant's expense, provide and install Building standard graphics on or near the door of the Premises and such portions of the Common Areas as Landlord shall determine, in Landlord's sole discretion.  Landlord reserves the right to use the exterior walls of the Premises, and the area beneath, adjacent to and above the Premises together with the right to install, use, maintain and replace equipment, machinery, pipes, conduits and wiring through the Premises, which serve other parts of the Project provided that Landlord's use does not unreasonably interfere with Tenant's use of the Premises.

 

31.Changes to Project. Landlord shall have the right, in Landlord's sole discretion, from time to time, to make changes to the size, shape, location, number and extent of the improvements comprising the Project (hereinafter referred to as "Changes") including, but not limited to, the interior and exterior of buildings, the Common Areas, HVAC, elevators, restrooms, electrical systems, communication systems, fire protection and detection systems, plumbing systems, security systems, parking control systems, driveways, entrances, parking spaces, parking areas and landscaped areas; provided Landlord shall use commercially reasonable efforts to minimize disruption and interference with Tenant’s use and operations at the Premises.  In connection with the Changes, Landlord may, among other things, erect scaffolding or other necessary structures at the Project, limit or eliminate access to portions of the Project, including portions of the Common Areas, or perform work in the Building, which work may create noise, dust or leave debris in the Building.  Tenant hereby agrees that such Changes and Landlord's actions in connection with such Changes shall in no way constitute a constructive eviction of Tenant or entitle Tenant to any abatement of rent.  Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant's business arising from the Changes, nor shall Tenant be entitled to any compensation or damages from Landlord for any inconvenience or annoyance occasioned by such Changes or Landlord's actions in connection with such Changes, provided Landlord uses commercially reasonable efforts to minimize disruption to Tenant's business operations caused by Changes.

 

32.Intentionally omitted.

 

33.Holding Over.  If Tenant remains in possession of the Premises or any part thereof after the expiration or earlier termination of the term hereof with Landlord's consent, such occupancy shall be a tenancy from month to month upon all the terms and conditions of this Lease pertaining to the obligations of Tenant, except that the Base Rent payable shall be [*] 

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payable immediately preceding the termination date of this Lease, and all Options, if any, shall be deemed terminated and be of no further effect.  If Tenant remains in possession of the Premises or any part thereof, after the expiration of the term hereof without Landlord's consent, Tenant shall, at Landlord's option, be treated as a tenant at sufferance or a trespasser, and the Base Rent shall be increased to [*] payable immediately preceding the termination date of this Lease.  Nothing contained herein shall be construed to constitute Landlord's consent to Tenant holding over at the expiration or earlier termination of the Lease term or to give Tenant the right to hold over after the expiration or earlier termination of the Lease term.  Tenant hereby agrees to indemnify, hold harmless and defend Landlord from any cost, loss, claim or liability (including reasonable attorneys' fees) Landlord may incur as a result of Tenant's failure to surrender possession of the Premises to Landlord upon the termination of this Lease.  

 

34.Landlord's Access.

 

34.1Access.  Landlord and Landlord's agents, contractors and employees shall have the right to enter the Premises at reasonable times upon reasonable advance written or telephonic notice to Tenant (except in the case of any emergency, where no advance notice shall be required)  for the purpose of inspecting the Premises, performing any services required of Landlord, showing the Premises to prospective purchasers, lenders or tenants, undertaking safety measures and making alterations, repairs, improvements or additions to the Premises or to the Project.  In the event of an emergency, Landlord may gain access to the Premises by any reasonable means, and Landlord shall not be liable to Tenant for damage to the Premises or to Tenant's property resulting from such access.  Landlord may at any time place on or about the Building or the Project for sale or for lease signs.  Landlord shall use commercially reasonable efforts to minimize interference with Tenant’s business operations caused by Landlord’s access pursuant to this Section.

 

34.2Keys.  Landlord shall have the right to retain keys to the locks on the entry doors to the Premises.  At Landlord's option, Landlord may require Tenant to obtain all keys to exterior door locks at the Premises from Landlord's engineering staff or Landlord's locksmith and to only use Landlord's engineering staff or Landlord's locksmith to change locks at the Premises.  Tenant shall pay Landlord's or its locksmith's standard charge for all keys and other services obtained from Landlord's engineering staff or locksmith.

 

35.Security Measures.  Tenant hereby acknowledges that Landlord shall have no obligation whatsoever to provide guard service or other security measures for the benefit of the Premises or the Project, and Landlord shall have no liability to Tenant due to its failure to provide such services.  Tenant assumes all responsibility for the protection of Tenant, its agents, employees, contractors and invitees and the property of Tenant and of Tenant's agents, employees, contractors and invitees from acts of third parties.  Nothing herein contained shall prevent Landlord, at Landlord's sole option, from implementing security measures for the Project or any part thereof, in which event Tenant shall participate in such security measures and the cost thereof shall be included within the definition of Operating Expenses, and Landlord shall have no liability to Tenant and its agents, employees, contractors and invitees arising out of Landlord's negligent provision of security measures.  Landlord shall have the right, but not the obligation, to require all persons entering or leaving the Project to identify themselves to a security guard and to reasonably establish that such person should be permitted access to the Project.  In no event shall Tenant or its employees, agents or contractors bring firearms or other weapons to the Project or the Premises, and Tenant shall not have the right to employ armed security guards.

 

36.Easements.  Landlord reserves to itself the right, from time to time, to grant such easements, rights and dedications that Landlord deems necessary or desirable, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Tenant.  Tenant shall sign any of the aforementioned documents within ten (10) days after Landlord's request, and Tenant's failure to do so shall constitute a default by Tenant.  The obstruction of Tenant's view, air or light by any structure erected in the vicinity of the Project, whether by Landlord or third parties, shall in no way affect this Lease or impose any liability upon Landlord.

 

37.Transportation Management.  Tenant shall fully comply at its sole expense with all present or future programs implemented or required by any governmental or quasi-governmental entity or Landlord to manage parking, transportation, air pollution or traffic in and around the Project or the metropolitan area in which the Project is located.

 

38.Severability.  The invalidity of any provision of this Lease as determined by a court of competent jurisdiction shall in no way affect the validity of any other provision hereof.

 

39.Time of Essence.  Time is of the essence with respect to each of the obligations to be performed by Tenant and Landlord under this Lease.

 

40.Definition of Additional Rent.  All monetary obligations of Tenant to Landlord under the terms of this Lease, including, but not limited to, Base Rent, Tenant's Percentage Share of Operating Expenses, Non-Business Hours HVAC Charges and late charges shall be deemed to be rent.

 

41.Incorporation of Prior Agreements.  This Lease and the attachments listed in Section 1.15 contain all agreements of the parties with respect to the lease of the Premises and any other matter mentioned herein.  No prior or contemporaneous agreement or understanding pertaining to any such matter shall be effective.  Except as otherwise stated in this Lease, Tenant hereby acknowledges that no real estate broker nor Landlord nor any employee or agents of any of said persons has made any 

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oral or written warranties or representations to Tenant concerning the condition or use by Tenant of the Premises or the Project or concerning any other matter addressed by this Lease.

 

42.Amendments.  This Lease may be modified in writing only, signed by the parties in interest at the time of the modification.  One or more emails signed by one or more parties shall never constitute a writing signed by the parties that is capable of amending or modifying the Lease.

 

43.Notices.  All notices required or permitted by this Lease shall be in writing and may be delivered (a) in person (by hand, by messenger or by courier service), (b) by U.S. Postal Service regular mail, (c) by U.S. Postal Service certified mail, return receipt requested or (d) by U.S. Postal Service Express Mail, Federal Express or other overnight courier, and shall be deemed sufficiently given if served in a manner specified in this section.  Notices may not be given by email, and email notices shall not be binding on Landlord or Tenant for any purpose.  The addresses set forth in Section 1.16 of this Lease shall be the address of each party for notice purposes.  Landlord or Tenant may by written notice to the other specify a different address for notice purposes, except that upon Tenant's taking possession of the Premises, the Premises shall constitute Tenant's address for the purpose of mailing or delivering notices to Tenant.  A copy of all notices required or permitted to be given to Landlord hereunder shall be concurrently transmitted to such party or parties at such addresses as Landlord may from time to time hereinafter designate by written notice to Tenant.  Any notice sent by regular mail or by certified mail, return receipt requested, shall be deemed given three (3) days after deposited with the U.S. Postal Service.  Notices delivered by U.S. Express Mail, Federal Express or other courier shall be deemed given on the date delivered by the carrier to the appropriate party's address for notice purposes.  If notice is received on Saturday, Sunday or a legal holiday, it shall be deemed received on the next business day.  Nothing contained herein shall be construed to limit Landlord's right to serve any notice to pay rent or quit or similar notice by any method permitted by applicable law, and any such notice shall be effective if served in accordance with any method permitted by applicable law whether or not the requirements of this section have been met.  

 

44.Waivers.  No waiver by Landlord or Tenant of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by Landlord or Tenant of the same or any other provision.  Landlord's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Landlord's consent to or approval of any subsequent act by Tenant.  The acceptance of rent hereunder by Landlord shall not be a waiver of any preceding breach by Tenant of any provision hereof, 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 partial payment of any sum due from Tenant shall be deemed a waiver by Landlord of its right to receive the full amount due, nor shall any endorsement or statement on any check or accompanying letter from Tenant be deemed an accord and satisfaction.  Tenant hereby waives California Code of Civil Procedure Section 1179 and Civil Code section 3275 which allow tenants to obtain relief from the forfeiture of a lease, and Tenant hereby waives any claim it may have against Landlord based on Landlord’s failure to comply with Section 1938 of the California Civil Code.  Tenant hereby waives for Tenant and all those claiming under Tenant all rights now or hereafter existing to redeem by order or judgment of any court or by legal process or writ Tenant's right of occupancy of the Premises after any termination of this Lease.

 

45.Covenants.  This Lease shall be construed as though Landlord's covenants contained herein are independent and not dependent and Tenant hereby waives the benefit of any statute to the contrary.  All provisions of this Lease to be observed or performed by Tenant are both covenants and conditions.

 

46.Binding Effect; Choice of Law.  Subject to any provision hereof restricting assignment or subletting by Tenant, this Lease shall bind the parties, their heirs, personal representatives, successors and assigns.  This Lease shall be governed by the laws of the state in which the Project is located, and any litigation concerning this Lease between the parties hereto shall be initiated in the county in which the Project is located.

 

47.Attorneys' Fees.  If Landlord or Tenant brings an action to enforce the terms hereof or declare rights hereunder, the prevailing party in any such action, or appeal thereon, shall be entitled to its reasonable attorneys' fees and court costs to be paid by the losing party as fixed by the court in the same or separate suit, and whether or not such action is pursued to decision or judgment.  The attorneys' fee award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all reasonable attorneys' fees and court costs reasonably incurred in good faith.  Landlord shall be entitled to reasonable attorneys' fees and all other costs and expenses reasonably incurred in the preparation and service of notices of default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such default.  Landlord and Tenant agree that attorneys' fees incurred with respect to defaults and bankruptcy are actual pecuniary losses within the meaning of Section 365(b)(1)(B) of the Bankruptcy Code or any successor statute.

 

48.Auctions.  Tenant shall not conduct, nor permit to be conducted, either voluntarily or involuntarily, any auction or going-out-of-business sale upon the Premises or the Common Areas.

 

49.Merger.  The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, or a termination by Landlord, shall not result in the merger of Landlord's and Tenant's estates and shall, at the option of Landlord, terminate all or any existing subtenancies or may, at the option of Landlord, operate as an assignment to Landlord of any or all of such subtenancies.

 

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50.Quiet Possession. Subject to the other terms and conditions of this Lease, and the rights of any lender, and provided Tenant is not in material default hereunder beyond any applicable notice and cure periods, Tenant shall have quiet possession of the Premises for the entire term hereof subject to all of the provisions of this Lease.

 

51.Authority.  If Tenant is a corporation, trust, limited liability company, limited liability partnership or general or limited partnership, Tenant, and each individual executing this Lease on behalf of such entity, represents and warrants that such individual is duly authorized to execute and deliver this Lease on behalf of said entity, that said entity is duly authorized to enter into this Lease, and that this Lease is enforceable against said entity in accordance with its terms.  If Tenant is a corporation, trust, limited liability company, limited liability partnership or other partnership, Tenant shall deliver to Landlord upon demand evidence of such authority satisfactory to Landlord. Landlord represents and warrants to Tenant that (a) each person executing this Lease on behalf of Landlord is duly and validly authorized to do so on behalf of the entity it purports to so bind and (b) that Landlord has the right and authority to enter into this Lease and perform all of its obligations hereunder.

 

52.Conflict.  Any conflict between the type written provisions of this Lease and handwritten provisions, if any, shall be controlled by the handwritten provisions; provided, however, handwritten provisions shall have no force or effect unless separately initialed by both Landlord and Tenant.

 

53.Multiple Parties.  If more than one person or entity is named as Tenant herein, the obligations of Tenant shall be the joint and several responsibility of all persons or entities named herein as Tenant.  Service of a notice in accordance with Section 43 on one Tenant shall be deemed service of notice on all Tenants.

 

54.Interpretation.  This Lease shall be interpreted as if it was prepared by both parties, and ambiguities shall not be resolved in favor of Tenant because all or a portion of this Lease was prepared by Landlord.  The captions contained in this Lease are for convenience only and shall not be deemed to limit or alter the meaning of this Lease.  As used in this Lease, the words tenant and landlord include the plural as well as the singular.  Words used in the neuter gender include the masculine and feminine gender.

 

55.Prohibition Against Recording.  Neither this Lease, nor any memorandum, affidavit or other writing with respect thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant.  Landlord shall have the right to record a memorandum of this Lease, and Tenant shall execute, acknowledge and deliver to Landlord for recording any memorandum prepared by Landlord.

 

56.Relationship of Parties.  Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venturer or any association between Landlord and Tenant.

 

57.Rules and Regulations. Tenant agrees to abide by and conform to the Rules and to cause its employees, suppliers, customers and invitees to so abide and conform.  Landlord shall have the right, from time to time, to modify, amend and enforce the Rules in a nondiscriminatory manner.  Landlord shall not be responsible to Tenant for the failure of other persons, including, but not limited to, other tenants, their agents, employees and invitees, to comply with the Rules.

 

58.Right to Lease.  Landlord reserves the absolute right to effect such other tenancies in the Project as Landlord in its sole discretion shall determine, and Tenant is not relying on any representation that any specific tenant or number of tenants will occupy the Project.

 

59.Patriot Act.  Tenant represents to Landlord that, (i) neither Tenant nor any person or entity that directly owns a 10% or greater equity interest in it nor any of its officers, directors or managing members is a person or entity (each, a “Prohibited Person”) with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under Executive Order 13224 (the “Executive Order”) signed on September 24, 2001, and entitled “Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism,” or other governmental action, (ii) Tenant’s activities do not violate the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 or the regulations or orders promulgated thereunder (as amended from time to time, the “Money Laundering Act”) and (iii) throughout the term of this Lease, Tenant shall comply with the Executive Order and with the Money Laundering Act.

 

60.Confidentiality.  Tenant acknowledges and agrees that the terms of this Lease are confidential and constitute proprietary information of Landlord.  Disclosure of the terms hereof could adversely affect the ability of Landlord to negotiate other leases with respect to the Project and may impair Landlord's relationship with other tenants of the Project.  Tenant agrees that it and its partners, officers, directors, employees, brokers, and attorneys, if any, shall not disclose the terms and conditions of this Lease to any other person or entity without the prior written consent of Landlord, which may be given or withheld by Landlord, in Landlord's reasonable discretion.  It is understood and agreed that damages alone would be an inadequate remedy for the breach of this provision by Tenant, and Landlord shall also have the right to seek specific performance of this provision and to seek injunctive relief to prevent its breach or continued breach.

 

30

 

61.Waiver of Jury Trial.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, LANDLORD AND TENANT HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, COUNTERCLAIM OR CROSS-COMPLAINT IN ANY ACTION, PROCEEDING AND/OR HEARING BROUGHT BY EITHER LANDLORD AGAINST TENANT OR TENANT AGAINST LANDLORD ON ANY MATTER WHATSOEVER ARISING OUT OF, OR IN ANY WAY CONNECTED WITH, THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE PREMISES, OR ANY CLAIM OF INJURY OR DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY LAW, STATUTE, OR REGULATION, EMERGENCY OR OTHERWISE, NOW OR HEREAFTER IN EFFECT.

 

62.Execution.

 

62.1Counterparts.  This Lease and any documents or addenda attached hereto (collectively, the “Documents”) may be executed in two or more counterpart copies, each of which shall be deemed to be an original and all of which together shall have the same force and effect as if the parties had executed a single copy of the Document.  

 

62.2Electronic Signatures.  Landlord shall have the right, in Landlord’s sole discretion, to insert the name of the person executing a Document on behalf of Landlord in Landlord’s signature block using an electronic signature (an “Electronic Signature”), and in this event the Document delivered to Tenant will not include an original ink signature and Landlord shall have no obligation to provide a copy of such Document to Tenant with Landlord’s original ink signature.  A Document delivered to Tenant by Landlord with an Electronic Signature shall be binding on Landlord as if the Document had been originally executed by Landlord with an ink signature. Without the prior written consent of Landlord, which may be withheld in Landlord’s sole discretion, Tenant shall not have the right to insert the name of the person executing the Document on behalf of Tenant using an Electronic Signature and all Documents shall be originally executed by Tenant using an ink signature. 

 

62.3Electronic Format.  A Document executed by Landlord or Tenant and delivered to the other party in PDF, facsimile or similar electronic format (collectively, “Electronic Format”) shall be binding on the party delivering the executed Document with the same force and effect as the delivery of a printed copy of the Document with an original ink signature.  At any time upon Landlord’s written request, Tenant shall provide Landlord with a printed copy of the Document with an original ink signature.

 

62.4Generally.  This Section describes the only ways in which Documents may be executed and delivered by the parties.  An email from Landlord, its agents, brokers, attorneys, employees or other representatives shall never constitute Landlord’s Electronic Signature or be otherwise binding on Landlord.  Subject to the limitations set forth above, the parties agree that a Document executed using an Electronic Signature and/or delivered in Electronic Format may be introduced into evidence in a proceeding arising out of or related to the Document as if it was a printed copy of the Document executed by the parties with original ink signatures.  Landlord shall have no obligation to retain copies of Documents with original ink signatures, and Landlord shall have the right, in its sole discretion, to elect to discard originals and to retain only copies of Documents in Electronic Format.

 

LANDLORD AND TENANT ACKNOWLEDGE THAT THEY HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN AND, BY EXECUTION OF THIS LEASE, SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO.  THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LANDLORD AND TENANT WITH RESPECT TO THE PREMISES.  TENANT ACKNOWLEDGES THAT IT HAS BEEN GIVEN THE OPPORTUNITY TO HAVE THIS LEASE REVIEWED BY ITS LEGAL COUNSEL PRIOR TO ITS EXECUTION.  PREPARATION OF THIS LEASE BY LANDLORD OR LANDLORD'S AGENT AND SUBMISSION OF SAME TO TENANT SHALL NOT BE DEEMED AN OFFER BY LANDLORD TO LEASE THE PREMISES TO TENANT OR THE GRANT OF AN OPTION TO TENANT TO LEASE THE PREMISES.  THIS LEASE SHALL BECOME BINDING UPON LANDLORD ONLY WHEN FULLY EXECUTED BY BOTH PARTIES AND WHEN LANDLORD HAS DELIVERED A FULLY EXECUTED COPY OF THIS LEASE TO TENANT IN THE MANNER SET FORTH IN THIS LEASE.  THE DELIVERY OF A DRAFT OF THIS LEASE TO TENANT SHALL NOT CONSTITUTE AN AGREEMENT BY LANDLORD TO NEGOTIATE IN GOOD FAITH, AND LANDLORD EXPRESSLY DISCLAIMS ANY LEGAL OBLIGATION TO NEGOTIATE IN GOOD FAITH. 

 

[Remainder of this page left intentionally blank.]

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LANDLORD:

 

The Realty Associates Fund XI Portfolio, L.P., 

a Delaware limited partnership

 

By:       The Realty Associates Fund XI, L.P., 

a Delaware limited partnership, general partner

 

By:       Realty Associates Fund XI, LLC, 

a Delaware limited liability company, general partner

 

 

                        By:       /s/ John Powell         Aug. 8, 2019  

                                    Name: John Powell

                                    Title:

 

 

TENANT:

 

Ambarella Corporation, 

a Delaware corporation 

 

 

	
By:
	
/s/ Feng-Ming Wang

 

	

	
Feng-Mine Wang

	

	
(print name)

 

Its:         CEO

(print title)

 

 

 

 

 

 

32

 

EXHIBIT A

 

DEPICTION OF ORIGINAL PREMISES AND EXPANSION PREMISES

 

Exhibit A is intended only to show the general layout of the Original Premises and the Expansion Premises, and shall not be interpreted to increase or decrease the size of the Original Premises or the Expansion Premises beyond the number of rentable square feet set forth in Section 1.5.  Exhibit A is not to be scaled and any measurements or distances shown on Exhibit A are approximates only.

 

 

 

3101 Jay Street First Floor Original Premises

 

 

 

 

[*]

33

 

 

3101 Jay Street Second Floor Original Premises

 

 

[*]

34

 

3131 Jay Street Expansion Premises

 

[*]

35

 

EXHIBIT B

 

EXPANSION PREMISES VERIFICATION LETTER

 

 

The Realty Associates Fund XI Portfolio, L.P., a Delaware limited partnership ("Landlord") and Ambarella Corporation, a Delaware corporation ("Tenant”), have entered into a Standard Lease (the “Lease”).  Pursuant to the Lease, Tenant has agreed to lease from Landlord and Landlord has agreed to lease from Tenant approximately 11,722 rentable square feet of space in the building located at 3131 Jay Street, Santa Clara, California.  Tenant hereby acknowledges and agrees that the Expansion Premises Commencement Date (as defined in the Lease) is ____________, 2021.

 

TENANT:

 

Ambarella Corporation, 

a Delaware corporation 

 

 

	
By:
	
_____________________________

 

	

	
_____________________________

	

	
(print name)

 

Its:____________________________

(print title)

 

36

 

EXHIBIT C

 

RULES AND REGULATIONS

 

GENERAL RULES

 

 

[*]

37

 

EXHIBIT D

 

Form of HazMat Certificate

 

[*]

 

 

38

 

Exhibit F

 

Addendum to Standard Lease (the "Lease")

Between The Realty Associates Fund XI Portfolio, L.P. ("Landlord")

and Ambarella Corporation, a Delaware corporation ("Tenant")

 

It is hereby agreed by Landlord and Tenant that the provisions of this Addendum are a part of the Lease.  If there is a conflict between the terms and conditions of this Addendum and the terms and conditions of the Lease, the terms and conditions of this Addendum shall control.  Capitalized terms in this Addendum shall have the same meaning as capitalized terms in the Lease, and, if a Work Letter Agreement is attached to this Lease, as those terms have been defined in the Work Letter Agreement.

 

1.Termination of Existing Lease.  Tenant presently occupies the Original Premises pursuant to an existing lease (the "Existing Lease"). Prior to the Commencement Date, the Existing Lease shall remain in full force and effect, and Tenant shall perform all of its obligations under the Existing Lease. Landlord and Tenant agree that upon the Original Premises Commencement Date, the term of the Existing Lease will immediately end, and this Lease shall govern Landlord's and Tenant's rights with respect to the Original Premises. Tenant shall continue to be obligated to perform obligations under the Existing Lease that expressly survive its termination, including, but not limited to, indemnity obligations and obligations to pay operating expenses and real property taxes.  Tenant accepts the Original Premises in its “as is” condition.  At the sole option of Landlord, any default by Tenant under the Existing Lease continuing beyond any notice and cure period and continuing on the Original Premises Commencement Date shall be deemed to be a default under Section 17.1(c) of this Lease.  

 

2.Abatement of Rent.  

 

(a)Original Premises.  Landlord hereby agrees to conditionally waive the Base Rent due for the Original Premises for [*].  Except as provided in (b) below, no amounts due to Landlord under the Lease other than the Base Rent referred to above shall be conditionally waived.  In the event Tenant commits a material default as defined in the Lease and such default continues beyond any notice and cure period, Base Rent coming due thereafter shall not be waived, and all Base Rent that Landlord conditionally waived under this provision shall be immediately due and payable by Tenant to Landlord without notice or demand from Landlord.  If the Lease expires in accordance with its terms, and does not terminate as a result of a default by Tenant, Landlord agrees to permanently waive the Base Rent it has conditionally waived.

 

(b)Expansion Premises.  Landlord hereby agrees to conditionally waive the Base Rent and the Operating Expenses attributable to the Expansion Premises for [*] after the Expansion Premises Commencement Date (the “Expansion Premises Abatement Period”).  Tenant shall be obligated to pay all Base Rent and Operating Expenses attributable to the Original Premises during the Expansion Premises Abatement Period.  Except as provided herein and in (a) above, no amounts due to Landlord under the Lease other than the Base Rent and Operating Expenses referred to above shall be conditionally waived.  In the event Tenant commits a material default as defined in the Lease and such default continues beyond any notice and cure period, Base Rent and Operating Expenses coming due thereafter shall not be waived, and all Base Rent and Operating Expenses that Landlord conditionally waived under this provision shall be immediately due and payable by Tenant to Landlord without notice or demand from Landlord.  If the Lease expires in accordance with its terms, and does not terminate as a result of a default by Tenant, Landlord agrees to permanently waive the Base Rent and Operating Expenses it has conditionally waived.

 

3.Security Deposit.  Section 1.12 of the Lease provides that Tenant shall pay to Landlord a security deposit in the amount of $173,635.32 (the “Security Deposit”).  Tenant has previously provided to Landlord pursuant to the Existing Lease a security deposit in the amount of $90,634.74 (the “Existing Deposit”).  Landlord agrees to credit the Existing Deposit towards payment of the Security Deposit on the Commencement Date.  Consequently, when this Lease is executed, Tenant shall pay to Landlord an additional security deposit in the amount of $83,000.58.

 

4.Replacement of Certain HVAC Units.  Landlord shall replace the HVAC units described on Exhibit 1 attached hereto (the “Replacement HVAC Units”) at the times specified on Exhibit 1.  Landlord shall replace the Replacement HVAC Units at Landlord’s sole cost and expense.   Landlord shall replace the Replacement HVAC Units with new HVAC units of a similar capacity and of a model and type chosen by Landlord, in Landlord’s sole discretion.

 

5.Repair of Condensing Unit.  There is an existing HVAC condensing unit on the roof of the 3101 Building that is need of repair (the “3101 Condensing Unit”) and the 3101 Condensing Unit is identified on Exhibit 1.  Landlord shall use commercially reasonable efforts to complete the repair of the 3101 Condensing Unit on or before September 30, 2019, and Landlord shall cause the 3101 Condensing Unit to be repaired at Landlord’s sole cost and expense.

 

6.Landlord Repairs to Original Premises.  As soon as is reasonably possible after the mutual execution and delivery of this Lease, Landlord shall complete the following repairs at Landlord’s sole cost and expense:

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(a)The floor drain in the men’s shower on the second floor of the 3101 Building (the “Floor Drain”) seems to be draining more slowly than is appropriate for the size of the Floor Drain.  Landlord shall cause the Floor Drain to be professionally cleaned (including, if appropriate, “snaking” the drain and its associated piping) in order to maximize drainage from the Floor Drain; provided, however, Landlord shall have no obligation to increase the size of the existing drainage pipes; and

 

(b)The water pressure in the women’s shower on the first floor of the 3101 Building (the “Shower Pressure”) seems to be less than would normally be expected.  Landlord shall have the water pressure evaluated by a plumber and complete any repairs to the existing plumbing system that are appropriate based on the plumber’s evaluation; provided, however, Landlord shall have no obligation to increase or decrease the size of the existing water pipes.

 

7.Electric Vehicle Charging Stations.  Landlord shall install three (3) electric vehicle charging stations in the Common Areas of the Project in one or more locations chosen by Landlord (the “New Charging Stations”). Tenant Parties shall have the non-exclusive right to use the New Charging Stations and Landlord makes no representation or warranty that the New Charging Stations will be available for the use by Tenant Parties at any time.  Each New Charging Station shall have the capacity to charge two electric vehicles at a time.  The type, manufacturer and characteristics of the New Charging Stations shall be determined by Landlord, in Landlord’s sole discretion.  Landlord shall install the New Charging Stations at Landlord’s sole cost and expense, and Tenant shall have no obligation to pay any portion of the cost of initially installing the New Charging Stations.  The cost of operating, maintaining and repairing the New Charging Stations may be included in Operating Expenses.  Landlord shall commence planning and installation activities promptly upon execution of the Lease and shall endeavor to complete the installation in a prompt manner use commercially reasonable efforts to install the New Charging Stations on or before March 31, 2020.  Landlord and Tenant acknowledge that for purposes of Section 19 of this Lease, the use of the New Charging Stations by Tenant Parties shall constitute a use of the Project by Tenant, and that Section 20 of the Lease shall apply to the use of the New Charging Stations by Tenant Parties.  

 

8.Remodeling Restrooms in Original Premises.  There are a total of four (4) restrooms in the 3101 Building (i.e., two men’s restrooms and two women’s restrooms) (the “3101 Restrooms”).  Promptly following the execution and delivery of this Lease, Landlord shall employ an architect to prepare plans and specifications for the renovation of the 3101 Restrooms (the “Renovation Plans”).  The Renovation Plans shall include finishes similar to the restroom finishes currently existing in the restrooms in the 3131 Building, and otherwise as determined by Landlord, in Landlord’s sole discretion.  Following the completion of the Renovation Plans, Landlord shall submit the Renovation Plans to any applicable governmental entities that have the right to approve the Renovation Plans.  Promptly following Landlord obtaining all required approvals to complete the 3101 Restroom renovations based on the Renovation Plans (the “3101 Restroom Renovations”), Landlord shall employ a contractor to complete the 3101 Restroom Renovations and Landlord shall endeavor to have the contractor complete the 3101 Restroom Renovations in a prompt manner; provided, however, Landlord shall not be obligated to incur overtime or other extraordinary charges.  Landlord shall complete the 3101 Restroom Renovations in a manner that will insure that during the completion of the 3101 Restroom Renovations at least one men’s restroom and one women’s restroom will be available to Tenant (the “Available Restrooms”).  Tenant acknowledges that the Available Restrooms may not include showers.  Tenant acknowledges that Landlord's contractors will complete the 3101 Restroom Renovations while Tenant occupies the Original Premises, that the construction of the 3101 Restroom Renovations will prevent Tenant from using certain parts of the Original Premises from time to time and that the completion of the 3101 Restroom Renovations will create noise dust and debris that may interfere with Tenant's use of portions of the Premises.  Tenant acknowledges and agrees that it shall have no right to any abatement of rent or to recover any other damages from Landlord due to its inability to use portions of the Premises while the 3101 Restroom Renovations are being completed or due to interference with its business operations caused by such construction.  The 3101 Restroom Renovations shall be completed by Landlord at Landlord’s sole cost and expense. 

 

9.Improvements Constructed by Tenant.

 

(a)Improvements.  

 

(i)Original Premises. Tenant shall inform Landlord of the improvements Tenant would like Landlord to make to the Original Premises (the “Original Premises Improvements”) pursuant to this Addendum Section.  Subject to the terms and conditions of this Addendum Section and Section 13 of the Lease, Tenant may commence the construction of the Original Premises Improvements at any time after the mutual execution and delivery of this Lease. 

 

(ii)Expansion Premises.  Tenant shall inform Landlord of the improvements Tenant would like Landlord to make to the Expansion Premises (the “Expansion Premises Improvements”) pursuant to this Addendum Section.  Subject to the terms and conditions of this Addendum Section and Section 13 of the Lease, Tenant may commence the construction of the Expansion Premises Improvements at any time after the Expansion Premises Commencement Date.

 

(iii)Landlord Approval.  The Original Premises Improvements and the Expansion Premises Improvements are hereinafter collectively referred to as the “Improvements”.  Landlord shall have the right to approve the 

40

 

Improvements, in Landlord’s reasonable discretion.  By way of example and not limitation, Landlord shall have no obligation to approve any Improvement if the Improvement (i) affects any portion of the Project outside the Premises, (ii) adversely affects the Buildings’ electrical, plumbing, HVAC, life, fire safety or similar Building systems or the structural elements of the Buildings, (iii) adversely affects any other tenant of the Project or (iv) would not comply with any law or regulation.

 

(b)Construction Drawings.  Tenant shall retain an architect (the “Architect”) that is reasonably acceptable to Landlord to prepare separate construction drawings for the Original Premises Improvements and the Expansion Premises Improvements (collectively, the “Construction Drawings”).  Landlord shall have the right to approve the Construction Drawings in Landlord’s reasonable discretion.  Landlord's review of the Construction Drawings is for its sole benefit and Landlord shall have no liability to Tenant or Tenant's contractors arising out of or based on Landlord's review.  Accordingly, notwithstanding that any Construction Drawings are reviewed by Landlord or its space planner, architect, engineers and consultants, and notwithstanding any advice or assistance which may be rendered to Tenant by Landlord or Landlord's space planner, architect, engineers and consultants, Landlord shall have no liability whatsoever in connection therewith and shall not be responsible for any omissions or errors arising therefrom.

 

(c)Permits and Changes.  The Construction Drawings approved by Landlord (the “Final Construction Drawings”) shall be submitted by Tenant to the appropriate governmental agencies in order to obtain all applicable building permits.  Prior to commencing construction of the Original Premises Improvements, Tenant shall provide Landlord with copies of the permits applicable to the Original Premises Improvements and prior to commencing construction of the Expansion Premises Improvements, Tenant shall provide Landlord with copies of the permits applicable to the Expansion Premises Improvements.  Tenant hereby agrees that neither Landlord nor Landlord's consultants shall be responsible for obtaining any building permits or a certificate of occupancy for the Premises and that obtaining the same shall be Tenant's sole responsibility; provided, however, that Landlord shall cooperate with Tenant in executing permit applications and performing other ministerial acts reasonably necessary to enable Tenant to obtain any such permits or certificate of occupancy.  No changes, modifications or alterations in the Final Construction Drawings may be made without the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed.

 

(d)Compliance with Laws.  Tenant shall be solely responsible for constructing the Improvements in compliance with all laws.  Tenant acknowledges and agrees that it may be obligated to modify, alter or upgrade the Premises and the systems therein in order to complete the construction of the Improvements, and Landlord shall have no liability or responsibility for modifying, altering or upgrading the Premises or its existing systems.  If, as a result of Improvements constructed in accordance with this Addendum Section, Landlord is obligated to comply with the Americans With Disabilities Act or any other law or regulation and such compliance requires Landlord to make any improvements or alterations to any portion of the Project outside the Premises (an “Exterior Alteration”), Landlord may deduct the cost of making the Exterior Alteration from the Improvement Allowance (as defined below), and if the cost of making the Exterior Alteration exceeds the monies available in the Improvement Allowance, Tenant shall pay such excess costs to Landlord within ten (10) days after written demand.

 

(e)Contractors.  Landlord shall have the right to approve in advance the contractors (the “Contractors”) used by Tenant to construct the Improvements, in Landlord’s reasonable discretion.  Notwithstanding the forgoing, Landlord shall have the right to designate which subcontractors may perform work on the Buildings’ HVAC systems, roof and life, fire and safety systems.  Tenant's indemnification obligations in the Lease shall also apply with respect to any and all damages, cost, loss or expense (including attorney’s fees) related to any act or omission of Tenant or its Contractors, or anyone directly or indirectly employed by any of them, or in connection with Tenant's non-payment of any amount arising out of the Improvements.  The Contractors shall carry worker's compensation insurance covering all of their respective employees, public liability insurance, including property damage, and such other insurance as required by Landlord, in Landlord’s sole discretion.  Certificates for all insurance carried pursuant to this section shall be delivered to Landlord before the commencement of construction of the Improvements.  All such policies of insurance shall name Landlord and its property manager as an additional insured.

 

(f)Construction Procedures.  The Contractors shall comply with all of Landlord's rules, regulations and procedures concerning the construction of improvements at the Project (collectively, the "Construction Procedures"), and if any Contractor fails to comply with the Construction Procedures after Landlord has provided the Contractor with written notice of its non-compliance, Landlord shall have the right to prohibit such Contractor from performing any further work in the Building, and Landlord shall have no liability to Tenant due to such prohibition.  Landlord's Construction Procedures are available from the Building's property manager.  Tenant's Contractors shall not perform any construction work at the 3131 Building from 8:00 a.m. to 6:00 p.m., Monday through Friday.  Tenant and the Contractors shall not have the right, at any time, to disrupt any Building service (e.g., electrical, plumbing etc.) to the Common Areas or to another tenant's premises.   Tenant and the Contractors shall only store construction materials inside the Premises and the Contractors shall not dispose of their refuse or construction materials in the Project's trash receptacles.  Tenant's Contractors shall only use Building entrances and Building freight elevators designated by Landlord to transport construction materials to the Premises, and Tenant and Tenant's Contractors shall take whatever precautions Landlord may reasonably prescribe to protect the Project from damages due to such activities.  Tenant shall reimburse Landlord for the cost of repairing any damage to the Project caused by the construction of the 

41

 

Improvements.  Landlord shall have the right to inspect the Improvements at all times upon reasonable notice to Tenant, provided however, that Landlord's inspection of the Improvements shall not constitute Landlord's approval of the Improvements. Any defects in the Improvements shall be rectified by Tenant at no expense to Landlord. Landlord shall have the right to receive a fee to reimburse it for the costs incurred by Landlord in providing approvals hereunder and in monitoring the construction of the Improvements in an amount equal to three percent (3%) of the total cost of constructing the Improvements (the "Landlord Fee").  In addition, if Landlord incurs architectural, engineering or other consultants’ fees in evaluating such Improvements (“Third Party Fees”), Tenant shall reimburse Landlord for these fees in addition to the Landlord Fee.  Landlord shall have the right to deduct the Landlord Fee and the Third Party Fees from the Improvement Allowance (as defined below).

 

(g)Improvement Allowance. 

 

(i)Original Premises.  Landlord hereby grants to Tenant an "Original Premises Improvement Allowance" of [*], which Original Premises Improvement Allowance shall be used only to reimburse Tenant for the actual out-of-pocket costs paid by Tenant to independent third parties for the construction of the Original Premises Improvements or payment of the Landlord Fee and the Third Party Fees.  After the completion of the construction of the Original Premises Improvements, Landlord shall make one (1) disbursement of the Original Premises Improvement Allowance.  Prior to Landlord making the disbursement, Tenant shall deliver to Landlord:  (A) a request for payment, approved by Tenant, in a form which is reasonably acceptable to Landlord; (B) invoices from all contractors whose work is being paid with respect to such payment request; (C) copies of executed mechanic's lien releases from all of the contractors which shall comply with the provisions of California Civil Code Section 8138; (D) proof that Tenant has previously paid to the contractors the monies described in the payment request; (E) “as built” plans for the Original Premises Improvements and (F) all other information reasonably requested by Landlord.  Within thirty (30) days after Landlord has received all of this information, Landlord shall deliver a check to Tenant in an amount equal to the lesser of (i) the actual monies paid by Tenant to Tenant's contractors with respect to such payment request plus the Landlord Fee and the Third Party Fees if previously paid by Tenant or (ii) the Original Premises Improvement Allowance.  

 

(ii)Expansion Premises.  Landlord hereby grants to Tenant an "Expansion Premises Improvement Allowance" of [*], which Expansion Premises Improvement Allowance shall be used only to reimburse Tenant for the actual out-of-pocket costs paid by Tenant to independent third parties for the construction of the Expansion Premises Improvements or payment of the Landlord Fee and the Third Party Fees.  After the completion of the construction of the Expansion Premises Improvements, Landlord shall make one (1) disbursement of the Expansion Premises Improvement Allowance.  Prior to Landlord making the disbursement, Tenant shall deliver to Landlord:  (A) a request for payment, approved by Tenant, in a form which is reasonably acceptable to Landlord; (B) invoices from all contractors whose work is being paid with respect to such payment request; (C) copies of executed mechanic's lien releases from all of the contractors which shall comply with the provisions of California Civil Code Section 8138; (D) proof that Tenant has previously paid to the contractors the monies described in the payment request; (E) “as built” plans for the Expansion Premises Improvements and (F) all other information reasonably requested by Landlord.  Within thirty (30) days after Landlord has received all of this information, Landlord shall deliver a check to Tenant in an amount equal to the lesser of (i) the actual monies paid by Tenant to Tenant's contractors with respect to such payment request plus the Landlord Fee and the Third Party Fees if previously paid by Tenant or (ii) the Expansion Premises Improvement Allowance.  

 

(iii)FF&E.  The Original Premises Improvement Allowance and the Expansion Premises Improvement Allowance are hereinafter collectively referred to as the “Improvement Allowance”.  In no event shall the Improvement Allowance be used to pay the cost of computer or telephone wiring or any cost of purchasing furniture, fixtures or equipment (collectively, "FF&E"), and the cost of all FF&E shall be paid by Tenant, at Tenant's sole expense. 

 

(h)Application to Base Rent of Unused Improvement Allowance.

 

(i)Original Premises Improvement Allowance.  If the actual cost of the Original Premises Improvements does not exceed [*], Tenant may use [*] to pay Base Rent due prior to [*] (the “Original Premises Rent Period”).  If Tenant elects not to construct any Original Premises Improvements, Tenant may apply [*] to the payment of Base Rent during the Original Premises Rent Period.  In order to allocate all or a portion of the unused Improvement Allowance to the payment of Base Rent, Tenant must give written notice to Landlord of the portion of the unused Improvement Allowance it has elected to have allocated to the payment of Base Rent during the Original Premises Rent Period (an “Original Premises Rent Allocation Notice”); provided, however, such allocation shall only be for Base Rent due after the date the Original Premises Rent Allocation Notice is given by Tenant to Landlord.  Any portion of the Original Premises Improvement Allowance that has not been expended on or before [*] on the construction of the Original Premises Improvements or on the payment of Base Rent shall be retained by Landlord, and Tenant shall have no further right to the use of such unused portion of the Original Premises Improvement Allowance for any purpose.

 

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(ii)Expansion Premises Improvement Allowance.  If the actual cost of the Expansion Premises Improvements does not exceed [*], Tenant may use [*] (the “Maximum Rent Amount”) [*] to pay Base Rent due prior to [*] (the “Expansion Premises Rent Period”).  In order to allocate all or a portion of the unused Expansion Premises Improvement Allowance to the payment of Base Rent, Tenant must give written notice to Landlord of the portion [*] it has elected to have allocated to the payment of Base Rent during the Expansion Premises Rent Period (a “Expansion Premises Rent Allocation Notice”); provided, however, such allocation shall only be for Base Rent due after the date the Expansion Premises Rent Allocation Notice is given by Tenant to Landlord.  Any portion of the Expansion Premises Improvement Allowance [*] shall be retained by Landlord, and Tenant shall have no further right to the use of such unused portion of the Expansion Premises Improvement Allowance for any purpose.

 

(i)Commencement Date.  The Original Premises Commencement Date and the Expansion Premises Commencement Date are not conditioned upon the completion of the Improvements.

 

(j)Restorations.  At Landlord’s option, subject to the terms of this provision, Tenant shall remove some or all of the Improvements prior to the last day of the term of the Lease and return the Premises to the condition it was in prior to the installation of such Improvements (the “Restorations”), all at Tenant’s sole cost and expense.  At the time Tenant submits the Final Construction Drawings to Landlord for the Original Premises Improvements or the Expansion Premise Improvements, as applicable, Tenant shall have the right to request a determination from Landlord of whether Landlord will require the restoration of some or all of such improvements described on the Final Construction Drawings (a “Restoration Notice Request”).  Landlord shall reply to any Restoration Notice Request within ten (10) days after receiving the Restoration Notice Request.  Notwithstanding the foregoing, Tenant shall not be required to make any Restorations that are not expressly required by Landlord in response to a Restoration Notice Request from Tenant. Landlord shall have the right to approve the materials used and work undertaken by Tenant to complete any Restorations and the Restorations shall be satisfactory to Landlord.  Section 13 of the Lease and Sections (b), (c), (d), (e) and (f) above shall apply to the Restorations to the same extent they apply to the Improvements.   If Tenant fails to complete the Restorations prior to the last day of the term of the Lease, in addition to Landlord’s other rights and remedies, Landlord may complete the Restorations and Tenant shall reimburse Landlord for all costs it incurs within ten (10) days after written request.

 

10.Option to Extend.  Landlord hereby grants to Tenant the option to extend the term of the Lease for one (1) five (5)-year period (the "Extension Option") commencing when the initial lease term expires upon each and all of the following terms and conditions:

 

(a)On a date which is prior to the date that the option period would commence (if exercised) by at least two hundred seventy (270) days and not more than three hundred sixty (360) days, Landlord shall have received from Tenant a written notice of the exercise of the option to extend the Lease for said additional term (an “Exercise Notice”), time being of the essence. If the Exercise Notice is not so given and received, the Extension Option shall automatically expire, Tenant shall no longer have the right to give an Exercise Notice and this section shall be of no further force or effect.  Tenant shall give the Exercise Notice using certified mail return receipt requested or some other method where the person delivering the package containing the Exercise Notice obtains a signature of the person accepting the package containing the Exercise Notice (e.g., by FedEx with the requirement that the FedEx delivery person obtain a signature from the person accepting the package).  It shall be the obligation of Tenant to prove that Landlord received the Exercise Notice in a timely manner.

 

(b)All of the terms and conditions of the Lease except where specifically modified by this section shall apply.

 

(c)The monthly Base Rent payable during the option term shall be the Market Rate on the date the option term commences.  

 

(d)The term "Market Rate" shall mean the annual amount per rentable square foot that a willing, comparable renewal tenant would pay and a willing, comparable landlord of a similar building would accept at arm's length for similar space, giving appropriate consideration to the following matters: (i) annual rental rates per rentable square foot; (ii) the type of escalation clauses (including, but without limitation, operating expense, real estate taxes, and CPI) and the extent of liability under the escalation clauses (i.e., whether determined on a "net lease" basis or by increases over a particular base year or base dollar amount); (iii) rent abatement provisions reflecting free rent and/or no rent during the lease term; (iv) length of lease term; (v) size and location of premises being leased; and (vi) other generally applicable terms and conditions of tenancy for similar space; provided, however, Tenant shall not be entitled to any tenant improvement allowance.  If renewal tenants exercising similar market rate extension options are receiving a tenant improvement allowance, this fact shall be taken into consideration in determining the Market Rate.  The Market Rate may also designate periodic rental increases and similar economic adjustments.  

 

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(e) If Tenant exercises the Extension Option, Landlord shall determine the Market Rate by using its good faith judgment.  Landlord shall provide Tenant with written notice of such amount on or before the date that is one hundred eighty (180) days prior to the date that the term of the Extension Option will commence.  Tenant shall have fifteen (15) days ("Tenant's Review Period") after receipt of Landlord's notice of the new rental within which to accept such rental.  In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected, and Landlord and Tenant shall attempt to agree upon such Market Rate, using their best good faith efforts.  If Landlord and Tenant fail to reach agreement within fifteen (15) days following Tenant's Review Period ("Outside Agreement Date"), then each party shall place in a separate sealed envelope their final proposal as to the Market Rate, and such determination shall be submitted to arbitration in accordance with subsections (i) through (v) below.  

 

(i)Landlord and Tenant shall meet with each other within five (5) business days after the Outside Agreement Date and exchange their sealed envelopes and then open such envelopes in each other's presence.  If Landlord and Tenant do not mutually agree upon the Market Rate within one (1) business day of the exchange and opening of envelopes, then, within ten (10) business days of the exchange and opening of envelopes, Landlord and Tenant shall agree upon and jointly appoint a single arbitrator who shall by profession be a real estate broker or agent who shall have been active over the fifteen (15) year period ending on the date of such appointment in the leasing of similar buildings in the geographical area of the Premises.  Neither Landlord nor Tenant shall consult with such broker or agent as to his or her opinion as to the Market Rate prior to the appointment.  The determination of the arbitrator shall be limited solely to the issue of whether Landlord's or Tenant's submitted Market Rate for the Premises is the closest to the actual Market Rate for the Premises as determined by the arbitrator, taking into account the requirements for determining Market Rate set forth herein.  Such arbitrator may hold such hearings and require such briefs as the arbitrator, in his or her sole discretion, determines is necessary.  In addition, Landlord or Tenant may submit to the arbitrator with a copy to the other party within five (5) business days after the appointment of the arbitrator any market data and additional information such party deems relevant to the determination of the Market Rate ("MR Data"), and the other party may submit a reply in writing within five (5) business days after receipt of such MR Data.

 

(ii)The arbitrator shall, within thirty (30) days of his or her appointment, reach a decision as to whether the parties shall use Landlord's or Tenant's submitted Market Rate and shall notify Landlord and Tenant of such determination.

 

(iii)The decision of the arbitrator shall be final and binding upon Landlord and Tenant.

 

(iv)If Landlord and Tenant fail to agree upon and appoint an arbitrator, then the appointment of the arbitrator shall be made by the presiding judge of the Superior Court for the county in which the Premises is located, or, if he or she refuses to act, by any judge having jurisdiction over the parties.

 

(v)The cost of the arbitration shall be paid by Landlord and Tenant equally.

 

(vi)Landlord shall have the right to require Tenant to execute and to deliver to Landlord an amendment to the Lease that accurately sets forth the extended term of the Lease and the new Base Rent and other economic terms, if any.  Within ten (10) days after Landlord provides the amendment to Tenant, Tenant shall execute the amendment and deliver the amendment to Landlord.  Landlord’s election not to require Tenant to execute an amendment shall not invalidate Tenant’s exercise of the Extension Option.

 

11.Right of Offer.

 

(a)From and after the Expansion Premises Commencement Date [*], Tenant shall have the right of offer to lease any space [*] after Tenant occupies the Expansion Premises in the 3131 Building (the "Additional Premises").  Prior to leasing any Additional Premises, Landlord shall give Tenant written notice of its intent to lease the Additional Premises (a “Landlord Notice”).  Tenant shall have ten (10) business days after Landlord has given written notice in which to provide Landlord with written notice of its irrevocable election to exercise its right to lease all of the Additional Premises (Tenant shall not have the right to elect to lease part of the Additional Premises).  Tenant shall pay Base Rent for the Additional Premises at the "Market Rate" (as defined below).  All of the other terms and conditions pertaining to the lease of the Additional Premises shall be agreed to by Landlord and Tenant within ten (10) days after Landlord receives Tenant's written notice, time being of the essence.  If Landlord and Tenant are unable to agree on such terms and conditions within the ten (10) day period, Tenant's right to lease the Additional Premises shall automatically expire and Tenant shall have no further right to lease the Additional Premises.  Except for the Market Rate which will be determined as provided in (b) below, all of the terms and conditions for the lease of the Additional Premises shall be satisfactory to Landlord and Tenant, in each of their sole and absolute discretions.  If Tenant does not give Landlord written notice of its election to lease such Additional Premises within ten (10) business days after Landlord gives Tenant its written notice of the availability of the Additional Premises, time being of the essence, Landlord shall thereafter be free to lease such Additional Premises to a third party on any terms and conditions that Landlord shall select, with no further obligation to Tenant unless and until Landlord has leased such Additional Premises to a third party, and after such 

44

 

third party occupies such Additional Premises, it once again becomes available for lease.  After Landlord has leased the Additional Premises and it has once again become available to lease, this Section shall once again apply to the lease of such Additional Premises.  If Landlord unintentionally fails to provide a Landlord Notice to Tenant, Tenant’s sole remedy for such failure shall be to notify Landlord of the failure and to request that it be provided a Landlord Notice, and, in this event, if the Additional Premises is still available for lease (i.e., it has not been leased by Landlord to a another tenant), Landlord shall provide the Landlord Notice to Tenant.  Under no circumstances shall Landlord have any legal liability to Tenant (for damages or otherwise) due to Landlord’s unintentional failure to provide a Landlord Notice to Tenant.  Landlord shall not be obligated to provide Tenant with notice pursuant to this section, and Tenant shall not have the right to exercise the right of offer granted in this section, at any time that Tenant has subleased all or any portion of the Premises or at any time Tenant is in default (continuing beyond and notice and cure period) as defined in the Lease. This right of offer shall be subject to (i) the prior and existing rights of the other tenants in the Project to lease the Additional Premises and (ii) Landlord's right, in Landlord's sole discretion, to elect to renew or extend the lease of any tenant occupying the Additional Premises, whether or not such tenant has the legal right or option to renew or extend its lease. 

 

(b)The term "Market Rate" shall mean the annual amount per rentable square foot that a willing, comparable tenant would pay and a willing, comparable landlord of a similar building would accept and the amount of tenant improvement allowance that such landlord would pay and such tenant would accept at arm's length for similar space, giving appropriate consideration to the following matters: (i) annual rental rates per rentable square foot; (ii) the type of escalation clauses (including, but without limitation, operating expense, real estate taxes, and CPI) and the extent of liability under the escalation clauses (i.e., whether determined on a "net lease" basis or by increases over a particular base year or base dollar amount); (iii) rent abatement provisions reflecting free rent and/or no rent during the lease term; (iv) length of lease term; (v) size and location of premises being leased; (vi) the amount of any tenant improvement allowance; and (vii) other generally applicable terms and conditions of tenancy for similar space.  If Tenant exercises its right to lease the Additional Premises, Landlord shall determine the Market Rate by using its good faith judgment.  Landlord shall provide Tenant with written notice of such amount within five (5) days after Tenant gives a Landlord Notice.  Tenant shall have five (5) days ("Tenant's Review Period") after receipt of Landlord's notice of the new rental within which to accept such rental.  In the event Tenant fails to accept in writing such rental proposal by Landlord, then such proposal shall be deemed rejected, and Landlord and Tenant shall attempt to agree upon such Market Rate, using their best good faith efforts.  If Landlord and Tenant fail to reach agreement within five (5) days following Tenant's Review Period ("Outside Agreement Date"), then each party shall place in a separate sealed envelope their final proposal as to the Market Rate, and such determination shall be submitted to arbitration in accordance with subsections (i) through (v) below.  

 

(i)Landlord and Tenant shall meet with each other within three (3) business days after the Outside Agreement Date and exchange their sealed envelopes and then open such envelopes in each other's presence.  if Landlord and Tenant do not mutually agree upon the Market Rate within one (1) business day of the exchange and opening of envelopes, then, within three (3) business days of the exchange and opening of envelopes, Landlord and Tenant shall agree upon and jointly appoint a single arbitrator who shall by profession be a real estate broker or agent who shall have been active over the fifteen (15) year period ending on the date of such appointment in the leasing of commercial buildings similar to the Premises in the geographical area of the Premises.  Neither Landlord nor Tenant shall consult with such broker or agent as to his or her opinion as to the Market Rate prior to the appointment.  The determination of the arbitrator shall be limited solely to the issue of whether Landlord's or Tenant's submitted Market Rate for the Premises is the closest to the actual Market Rate for the Premises as determined by the arbitrator, taking into account the requirements for determining Market Rate set forth herein.  In addition, Landlord or Tenant may submit to the arbitrator with a copy to the other party within three (3) business days after the appointment of the arbitrator any market data and additional information such party deems relevant to the determination of the Market Rate ("RR Data"), and the other party may submit a reply in writing within two (2) business days after receipt of such RR Data.

 

(ii)The arbitrator shall, within six (6) business days of his or her appointment, reach a decision as to whether the parties shall use Landlord's or Tenant's submitted Market Rate and shall notify Landlord and Tenant of such determination.

 

(iii)  The decision of the arbitrator shall be final and binding upon Landlord and Tenant.

 

(iv)If Landlord and Tenant fail to agree upon and appoint an arbitrator, then the appointment of the arbitrator shall be made by the presiding judge of the Superior Court for the County in which the Premises is located, or, if he or she refuses to act, by any judge having jurisdiction over the parties.

 

(v)The cost of the arbitration shall be paid by Landlord and Tenant equally.

 

(c)After the determination of the Market Rate, Landlord shall prepare an amendment to the Lease reflecting Base Rent at the Market Rate and adding the Additional Premises to the Premises (the “Amendment”). The terms of the Amendment (other than the Market Rate) shall be satisfactory to Landlord and Tenant in each of their sole and absolute 

45

 

discretions.  For example, Landlord shall have no obligation to agree to a coterminous term for Tenant’s lease of the Additional Premises and Tenant’s lease of the existing Premises.  The sole consequence of Landlord and Tenant not being able to agree on the terms and conditions of the Amendment shall be that Landlord shall have no further obligation to lease the Additional Premises to Tenant and Tenant shall have no further obligation to lease the Additional Premises from Landlord pursuant to this section.  Tenant shall execute and deliver the Amendment to Landlord within ten (10) business days after it is delivered to Tenant.  At Landlord’s option, if Tenant does not execute and deliver to Landlord the Amendment within the ten (10) business day period, time being of the essence, Tenant's right to lease the Additional Premises shall immediately terminate, and Tenant shall have no further right to lease the Additional Premises.  Section 29 of the Lease applies to this right of offer.

 

12.3101 Exterior Building Sign.  Tenant has previously installed one sign on the exterior façade of the 3101 Building containing Tenant’s name (the "Building Sign").  During the term of this Lease (including any extension terms), Tenant shall continue to have the right to maintain the Building Sign on the following terms and conditions:

 

(a)Tenant shall maintain the Building Sign in good order and repair, at Tenant's sole cost and expense;

 

(b)Any modification of the Building Sign shall be considered to be an "Alteration" within the meaning of Section 13.1 of the Lease, and shall be governed by the provisions thereof.  Notwithstanding anything to the contrary contained in Section 13.1, any modification or alteration of the Building Sign shall require Landlord's prior approval, which may be given or withheld by Landlord in Landlord's sole discretion;  

 

(c)The Building Sign shall be considered a use of the Premises pursuant to Section 19 of the Lease, and Tenant shall defend and indemnify Landlord to the extent provided in Section 19;

 

(d)Tenant shall remove the Building Sign and repair any damage to the Project, at Tenant's sole cost and expense, upon the termination or expiration of the Lease term;

 

(e)The insurance purchased by Tenant pursuant to Section 10.1 of the Lease shall apply to the Building Sign; and

 

(f)Should the Building Sign be electrically illuminated, Tenant agrees to pay to the cost of all electricity used by the Building Sign.

 

13.Monument Signs.  

 

(a)Project Monument Signs.  There are two Project monument signs (the “Project Monument Signs”), and each Project Monument Sign has one panel allocated to each of the three buildings comprising the Project (the “Building Sign Panels”).  The Building Sign Panels are all approximately the same size and each Building Sign Panel may include the names of multiple tenants of the applicable building.

 

(i)3101 Building Sign Panel.  Tenant has previously placed its name in the panel on each Project Monument Sign allocated to the 3101 Building.  During the term of this Lease, Tenant shall continue to have the right to maintain its name in the panels on the Project Monument Signs allocated to the 3101 Building.

 

(ii)3131 Building Sign Panel.  The panel on each Project Monument Sign allocated to the 3131 Building currently has three tenant names on each panel.  The Expansion Premises is currently occupied by Blue Danube Systems, Inc. and Blue Danube Systems, Inc.’s name is currently one of three tenant’s whose names have been placed on the Building Sign Panel for the 3131 Building.  From and after the Expansion Premises Commencement Date, Tenant shall have the right to place is name in the location on the Project Monument Signs now occupied by Blue Danube Systems, Inc. The cost of removal of Blue Danube Systems, Inc.’s sign shall be borne by Landlord.

 

(b)Building Monument Signs.  In addition to the Project Monument Signs, each of the three buildings comprising the Project has its own monument sign located in front of each building (the “Building Monument Signs”), and multiple tenant’s names may be placed on the Building Monument Signs.

 

(i)3101 Building Monument Sign.  Tenant has previously placed its name on the Building Monument Sign for the 3101 Building.  During the term of this Lease, Tenant shall continue to have the right to maintain its name on the 3101 Building Monument Sign.

 

(ii)3131 Building Monument Sign.  There are currently places for three tenant names on the 3131 Building Monument Sign, and Blue Danube Systems, Inc.’s name is currently located in one of those places.  From and after the Expansion Premises Commencement Date, Tenant shall have the right to place is name in the location on the 3131 Building Monument Sign now occupied by Blue Danube Systems, Inc.  The cost of removal of Blue Danube Systems, Inc.’s sign 

46

 

shall be borne by Landlord. Landlord may increase or decrease the number of names on the 3131 Building Monument Sign from time to time, in Landlord’s sole discretion.

 

(c)Generally.  Landlord shall have the right to approve the size, design, location and color of Tenant's name on the Project Monument Signs, the 3101 Building Monument Sign and the 3131 Building Monument Sign (collectively, the “Monument Signs”), in Landlord's sole discretion.  Landlord hereby approves the size, design, location and color of Tenant’s current name on the sign panel allocated to the 3101 Building on each Project Monument Sign and on the 3101 Building Monument Sign. The cost of placing Tenant's name on the Monument Signs shall be paid by Tenant, at Tenant’s sole cost and expense.  At Landlord’s option, (i) Tenant shall maintain its name on the Monument Signs in good condition, at Tenant's sole cost and expense, or (ii) Landlord shall maintain Tenant’s name on the Monument Signs and Tenant shall reimburse Landlord from time to time for the cost of such maintenance within ten (10) days after written request by Landlord.  Prior to the termination of the Lease, Tenant shall remove its name from the Monument Signs and repair any damages caused by such removal.  If Tenant fails to remove its name from the Monument Signs and repair any damages caused by such removal, Landlord shall have the right to remove Tenant’s name and/or repair any damages, and Tenant shall reimburse Landlord for the cost of the removal and/or repairs within ten (10) days after written request.  Subject to all of the terms and condition of this Addendum section, if Tenant assigns the Lease, Landlord shall not unreasonably withhold its consent to the modification of the Monument Signs to state the name of the person or entity to whom the Lease is assigned.  It shall be reasonable for Landlord to disapprove the addition of a name of an assignee to the Monument Signs if in Landlord's reasonable business judgment the name or business of the assignee is controversial or would violate the terms and conditions of another tenant’s lease.  By way of example and not limitation, controversial business include persons or entities involved in the following types of activities: pornography, political parties or political issues, abortion, foreign countries and religions.

 

14.Access to Premises - 365 Days Per Year.  Subject to the other terms and conditions of the Lease, Landlord shall use reasonable efforts to provide Tenant’s employees with access to the Premises twenty-four (24) hours a day, three hundred sixty-five (365) days per year.  Notwithstanding the foregoing, Tenant acknowledges and agrees that repairs, hazardous conditions and circumstances beyond Landlord's control may prevent access to the Premises from time to time.

 

15.Parking Monitor.  The Muslim Community Association currently has a Friday prayer service (“Friday Prayers”) at the property located at 3003 Scott Boulevard, Santa Clara, California.  In the past, members of the Muslim Community Association have sometimes parked in the Project’s parking areas.  Landlord currently provides a person to monitor the parking areas of the Project (the “Parking Monitor”) during certain times during Friday Prayers to minimize the use of the Project’s parking areas by persons attending Friday Prayers.  During the term of this Lease, Landlord shall continue to provide the Parking Monitor to the same extent it does as of the date this Lease is entered into provided that the Friday Prayers continue to adversely affect the availability of parking for tenants at the Project.  Landlord may stop providing the Parking Monitor to the extent that Friday Prayers are no longer adversely affecting the availability of parking for tenants at the Project.  The cost of the Parking Monitor shall be included in Operating Expenses.

 

[Remainder of page left intentionally blank.]

47

 

 

IN WITNESS WHEREOF, the parties hereto have respectively executed this Addendum.

 

The Realty Associates Fund XI Portfolio, L.P., 

a Delaware limited partnership

 

By:       The Realty Associates Fund XI, L.P., 

a Delaware limited partnership, general partner

 

By:       Realty Associates Fund XI, LLC, 

a Delaware limited liability company, general partner

 

 

                        By:       _/s/ John Powell______Aug. 8, 2019  

                                    Name: John Powell

                                    Title:

 

 

TENANT:

 

Ambarella Corporation, 

a Delaware corporation  

 

 

	
By:
	
_/s/ Kevin C. Eichler _______________

 

	

	
__Kevin C. Eichler______________

	

	
(print name)

 

Its:___CFO_________________________

(print title)

 

 

 

48

 

Exhibit 1 to Addendum to Lease

 

(Description of HVAC Units to be Replaced and the Time Each Unit will be Replaced and Description of 3101 Condensing Unit)

 

 

 

PHASE 1 – 2019 (3 units) 

	
 
	
•
	
3101 Jay Street AC-1, AC-2, AC-7

	
 
	
•
	
Compressor on condensing unit #5

 

 

PHASE 2 – 2020 (4 units)

	
 
	
•
	
3101 Jay Street AC-6, AC-3, AC-9, AC-10 

 

 

PHASE 3 – 2021 (1 unit)

	
 
	
•
	
3131 Jay Street AC-1

 

 

 

[*]

49

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