Document:

Document

Exhibit 10.20

OFFICE LEASE
By and Between
DARED 89 LLC, an Arizona limited liability company,
as Landlord
and
ZipRecruiter, Inc., a Delaware corporation
as Tenant

ARTICLE ONE:    BASIC TERMS/DEFINITIONS
This Article One contains the Basic Terms and Definitions of this Lease between the Landlord and Tenant named below. Other Articles, Sections and Paragraphs of the Lease referred to in this Article One explain and define the Basic Terms and are to be read in conjunction with the Basic Terms.
Section 1.1    Effective Date.  March 2, 2020.
Section 1.2    Landlord (include legal entity). DARED 89 LLC, an Arizona limited liability company.
Address of Landlord:    11452 El Camino Real, Suite 200
San Diego, California 92130
Phone: (858) 793-0202 
Fax: (858) 793-5363
Section 1.3    Tenant (include legal entity).  ZipRecruiter, Inc., a Delaware corporation
Address of Tenant prior to the Commencement Date:
604 Arizona Avenue
Santa Monica, California 90401
Attention: Business & Legal Affairs
And
At Premises
Attention:    Facilities Manager
With a copy to:
legal@ziprecruiter.com 
Section 1.4    Premises.  The Premises is approximately 90,599 rentable square feet (“RSF”) located on the entire first and second floors (the “Premises”) of the office building located at 4039 East Raymond Street, Phoenix AZ 85040 as shown on the site plan attached hereto as Exhibit A-1 (the “Building”). The Initial Premises consists of the approximate 19,037 RSF of space located of the first floor and 46,151 RSF located on the second floor of the Premises for a total of 65,188 RSF (the “Initial Premises”) depicted on Exhibit A-2. The Partial Premises consists of the approximate 25,411 RSF of space located on the first floor of the Premises depicted on Exhibit A-2 attached hereto (the “Partial Premises”). For purposes of this Lease, “rentable square feet” of the Premises and Building have been agreed and stipulated by Landlord and Tenant and shall not be subject to remeasurement or modification. The foregoing determination of the rentable and usable square footages of such premises shall be conclusive and binding upon the parties. The real property described on Exhibit A-3 hereto and all 

improvements thereon, including without limitation the Building and Common Areas (detailed below), are hereinafter collectively referred to as the “Project.” In addition to the Premises, Tenant shall have the exclusive use of the Common Areas (defined below) subject to the terms of this Lease, applicable covenants, conditions and restrictions and the rules and regulations; provided, however, if Tenant exercises the Partial Premises Termination Right or Lease Termination Right as to only a portion of the Premises or an Option to Extend as to only a portion of the Premises, following the effective date of such termination, Tenant shall have the non-exclusive use of the Common Areas.
Section 1.5    Lease Term.  One hundred and twenty-eight (128) months beginning one hundred and eighty days after the Effective Date, subject to extension of such one hundred eighty (180) day period on a day for day basis for Landlord Delays and Force Majeure Delays (the “Commencement Date”), and ending on the last day of the month following a full one hundred and twenty-eight (128) months thereafter (“Expiration Date”). Landlord and Tenant shall execute an amendment to this Lease in the form attached hereto as Exhibit D confirming the Commencement Date and the Expiration Date of the original Lease Term. Failure to execute such Exhibit shall not affect the validity or enforceability of this Lease.)
Section 1.6    Permitted Uses.  (See Article Five) Tenant may use and occupy the Premises for executive and general office purposes and any other legally permitted uses consistent with a first-class office building and uses incidental thereto, including employee assembly area for company meetings, cafeteria, lunch rooms, data center, training rooms, executive briefing rooms, library, conference rooms, team meeting areas and kitchen areas, all in accordance with the terms of this Lease and consistent with the character of the Project as a first-class office building project as long as Tenant’s primary use of the Premises is for general office purposes, and no other use of the Premises shall be permitted without the express written consent of Landlord. Tenant’s use of the Premises shall be subject to any restrictions of record of which Landlord has provided Tenant with prior written notice.
Section 1.7    Tenant’s Guarantor.  (If none, so state)  None. 
Section 1.8    Brokers.  (See Article Fourteen) (If none, so state)
Landlord’s Broker:    CB Richard Ellis
Brad Anderson
Mike Strittmatter
2415 E. Camelback Road
Phoenix, Arizona 85016
Phone: (602) 735-5670
Fax: (602) 735-5105
Tenant’s Broker:    Cresa
David Toomey
Brian Davies
Eric Walker
2398 E. Camelback Road, Suite 900

Phoenix, AZ 85016
Phone: (602) 648-7373
Section 1.9    Initial Security Deposit.  (See Section 3.2) None. See Letter of Credit requirements in Section 3.2.
Section 1.10    Vehicle Parking Spaces Allocated to Tenant.  (See Section 5.14) Six hundred (600) uncovered and unreserved total spaces. Tenant may elect to have Landlord provide covered and reserved parking spaces under the terms set forth below which covered and reserved parking spaces shall be included within the total parking spaces provided to Tenant. Tenant may elect to have Landlord provide up to, at Tenant’s sole election as to the amount, twenty-five (25) covered and reserved parking spaces for an additional charge of Forty-Five Dollars ($45.00) per covered parking space per month (“Initial Covered Parking Rent”) for the Lease Term and any Extended Term. No covered spaces will be located at the front of the Building. Any additional covered and reserved parking spaces above the twenty-five (25) spaces shall be provided at an additional monthly charge equal to the cost to construct the additional covered parking canopies amortized over the then remaining Lease Term using a six percent (6%) annual interest rate (“Additional Covered Parking Rent”). The Initial Covered Parking Rent and Additional Covered Parking Rent are hereinafter collected referred to as the “Covered Parking Rent”. Tenant shall notify Landlord of its one-time election to have covered parking by written notice to Landlord to be given within twelve (12) months after the Effective Date (the “Covered Parking Notice”). Landlord shall construct the covered parking canopies within a reasonable time after receipt of the Covered Parking Notice, but in no event shall it take Landlord longer than one hundred eighty (180) days to construct, in such locations as reasonably agreed upon between Landlord and Tenant subject to all required governmental approvals (no covered parking for Tenant will be located at the front North side of Building). Subject to Tenant’s compliance with all applicable statutes, ordinances, rules, regulations, easements, covenants, restrictions, orders and requirements regulating Project, Tenant shall be permitted to restripe the parking lot to increase the number of uncovered and unreserved parking spaces. In the event Tenant exercises the Partial Premises Termination Right (as defined below), the Lease Termination Right (as defined below) as to only a portion of the Premises or an Option to Extend (as defined below) as to only a portion of the Premises, the vehicle parking spaces allocated to Tenant shall be amended to seven (7) spaces per 1,000 square feet of rentable space of the Initial Premises which shall include all of Tenant’s previously elected covered and reserved parking spaces and Tenant shall be entitled to designate up to fifty (50) reserved parking spaces out of Tenant’s parking allowance in reasonable proximity to the front and rear entrances to the Premises (not more than fifteen (15) such reserved parking spaces shall be located in the front of the Building if Tenant leases less than the entire Building) as reasonably determined by Landlord and Tenant knowing that the Building is then a multi-tenant building. Further, in any of such events, Tenant shall no longer have the right to restripe the parking lot and, at Landlord’s election, Tenant shall cause the parking lot to be restriped to its original condition. Landlord agrees to use commercially reasonable efforts, at Tenant’s sole cost and expense, to acquire additional parking for Tenant at Tenant’s request. Tenant shall be entitled to add as many EV charging stations as desired by Tenant, at Tenant’s sole cost and expense subject to reimbursement from the Tenant Allowance, within the parking spaces allotted to Tenant herein.

Section 1.11    Rent and Other Charges Payable by Tenant.
(a)    BASE RENT: The “Base Rent” for the Lease Term commencing on the Commencement Date is as follows:
INITIAL PREMISES BASE RENT
												
	Term	Base Rent Per Rentable Square Foot Per Year	Base Rent Per Year	Base Rent Per Month
	Months 1-8	$  0.00	$0.00	$0.00
	Months 09-20*	$16.50	$1,075,602.00	$89,633.50
	Months 21-32	$17.00	$1,108,196.00	$92,349.67
	Months 33-44	$17.50	$1,140,790.00	$95,065.83
	Months 45-56	$18.00	$1,173,384.00	$97,782.00
	Months 57-68	$18.50	$1,205,978.00	$100,498.17
	Months 69-80	$19.00	$1,238,572.00	$103,214.33
	Months 81-92	$19.50	$1,271,166.00	$105,930.50
	Months 93-104	$20.00	$1,303,760.00	$108,646.67
	Months 105-116	$20.50	$1,336,354.00	$111,362.83
	Months 117-128	$21.00	$1,368,948.00	$114,079.00

PARTIAL PREMISES BASE RENT (to be paid in addition to the Initial Premises Base Rent unless Tenant exercises its Partial Premises Termination Right as set forth in Section 2.6 below)
												
	Term	Base Rent Per Rentable Square Foot Per Year	Base Rent Per Year	Base Rent Per Month
	Months 1-12	$0.00	$0.00	$0.00
	Months 13-24*	$18.50	$470,104.00	$39,175.33
	Months 25-36	$19.00	$482,809.00	$40,234.08
	Months 37-48	$19.50	$495,515.00	$41,292.92
	Months 49-60	$20.00	$508,220.00	$42,351.67
	Months 61-72	$20.50	$520,926.00	$43,410.50
	Months 73-84	$21.00	$533,631.00	$44,469.25
	Months 85-96	$21.50	$546,337.00	$45,528.08
	Months 97-108	$22.00	$559,042.00	$46,586.83
	Months 109-120	$22.50	$571,748.00	$47,645.67
	Months 121-128	$23.00	$389,635.00**	$48,704.38

*including any fractional month at the beginning of the Lease Term should the Commencement Date fall on a day other than the first day of a calendar month. In addition, Tenant shall pay all applicable rental and privilege taxes on Base Rent and 

Additional Rent during the entire Lease Term and shall be responsible for the payment of Additional Rent on the entire Premises during any time period of free or abated Base Rent.
**    This amount is not the Base Rent Per Year – it is the Base Rent for the final eight months of the Term.
(b)    Additional Rent (“Additional Rent”): (i) Tenant’s Pro-Rata Share of Operating Expenses (See Section 4.2); (ii) Utilities (See Section 4.3); (iii) Insurance Premiums (See Section 4.4); (iv) Maintenance, Repairs and Alterations (See Article Six); and (v) Covered Parking Rent (See Section 1.10); including all applicable rental and privilege taxes on said Additional Rent. All charges payable by Tenant to Landlord other than Base Rent are called “Additional Rent.”  Unless this Lease provides otherwise, Tenant shall pay all Additional Rent then due with the applicable monthly installment of Base Rent; provided, however, in the event of any changes in the amounts of Additional Rent, such amounts shall be due within the next monthly installment of Base Rent which is due at least thirty (30) days after Tenant’s receipt of an invoice therefore. The terms “rent” or “Rent” shall mean Base Rent and Additional Rent.
Section 1.12    Tenant’s Pro-Rata Share of Operating Expenses.  (See Section 4.1(a)) 100%
Section 1.13    Intentionally Omitted.
Section 1.14    Landlord’s Share of Profit on Assignment or Sublease.  (See Section 9.05) Fifty Percent (50%) of the Profit (the “Landlord’s Share”).
Section 1.15    Rentable Square Feet/Footage.  If Tenant exercises the Lease Termination Right as to only a portion of the Premises or an Option to Extend as to only a portion of the Premises, the remaining rentable square footage of the Premises shall be established using the Building Owners and Managers Association International, ANSI/BOMA Z65.1-2010. BOMA is incorporated herein by reference for such purposes.
Section 1.16    Common Areas.  All areas within the Project which are available for the common use of tenants of the Project and which are not leased or held for the exclusive use of Tenant or other tenants, including, but not limited to, parking areas, driveways, sidewalks, loading areas, access roads, corridors, monument signage, landscaping, planted areas, lobbies, corridors, hallways, elevator foyers, restrooms, mail rooms, mechanical and electrical rooms, janitorial closets, and other similar facilities used by tenants or for the benefit of tenants on a non-exclusive basis. Except as otherwise provided in this Lease, the manner in which the Common Areas are maintained and operated shall be at the reasonable discretion of Landlord, provided that Landlord shall maintain and operate the same in a first class manner substantially consistent with the Comparable Buildings and the use thereof shall be subject to such reasonable, non-discriminatory rules, regulations and restrictions as Landlord may make from time to time, which rules and regulations shall not be unreasonably or discriminatorily modified or enforced in a manner which shall materially interfere with the conduct of Tenant’s permitted use from the Premises or Tenant’s use of or access to the Premises or the Project or the parking areas 

servicing the same. So long as Landlord provides Tenant with prior written notice (provided that such notice shall not be required in the event of an emergency), Landlord, in Landlord’s reasonable discretion, reserves the right to close temporarily, make alterations or additions to, or change the location of elements of the Project and the Common Areas, so long as such changes do not change the nature of the Project to something other than a first class office building project or materially affect Tenant’s use of the Premises for the permitted use, or Tenant’s ingress to or egress from the Project, Building or the Premises or the parking areas servicing the same.
Section 1.17    Exhibits.  The following exhibits are attached to and made a part of this Lease:
Exhibit A-1 – Premises and Building
Exhibit A-2 – Initial Premises and Partial Premises
Exhibit A-3 – Project Legal Description
Exhibit B – Work Letter Agreement
Exhibit C – Rules and Regulations
Exhibit D – Commencement Notice
Exhibit E – Irrevocable Letter of Credit
Exhibit F – SNDA
ARTICLE TWO:    LEASE TERM
Section 2.1    Lease of Premises For Lease Term.  Landlord leases the Premises to Tenant and Tenant leases the Premises from Landlord for the Lease Term. The Lease Term is for the period stated in Section 1.5 above and shall begin and end on the dates specified in Section 1.5 above, unless the beginning or end of the Lease Term is changed under any provision of this Lease. The Commencement Date shall be the date specified in Section 1.5 above for the beginning of the Lease Term, unless advanced or delayed under any provision of this Lease. Subject to Landlord’s reasonable regulations, restrictions and guidelines and applicable laws, Tenant may also use the internal stairwells in the Building between the floors of the Premises, the electrical and telephone rooms and the area below the concrete ceiling of the Premises and below the concrete floor of the Premises and behind the walls of the Premises, including the right, subject to Landlord’s reasonable approval with respect to location and specifications and Landlord’s reasonable rules and regulations, to core drill between the floors of the Premises to install and service wire, conduit and cable that serve Tenant’s equipment in the Premises in accordance with, and subject to, the other terms and provisions of this Lease and Landlord’s rights hereunder with respect to such areas. Except when and where Tenant’s right of access is specifically excluded as the result of (i) an emergency, (ii) a requirement by applicable laws, or (iii) a specific provision set forth in this Lease, Tenant shall have the right of access to the Premises, the Building, and the Project twenty-four (24) hours per day, seven (7) days per week during the Lease Term.
Section 2.2    Delay in Commencement.  Landlord shall grant Tenant access to the Premises to Tenant for purposes of Tenant commencing its Tenant Improvements on the Effective Date (“Delivery Date”). If Landlord is unable to grant Tenant access to the Building by 

the Delivery Date for purposes of Tenant commencing its Tenant Improvements for any reason whatsoever, Landlord shall not be liable to Tenant for any damages or losses resulting therefrom and this Lease shall continue in full force and effect, except for the anticipated Commencement Date hereof and Tenant’s obligation to pay Base Rent and/or other rental pursuant hereto shall be extended one day for each day beyond the Delivery Date that Landlord fails to grant Tenant access to the Building for purposes of Tenant commencing its Tenant Improvements (regardless of whether Tenant actually accesses the Building on that date) and the Expiration Date shall be extended for a period equal to the delay in delivery of access to the Premises to Tenant, plus the number of days necessary to end the Lease Term on the last day of a month, and Rent shall be prorated for any partial month accordingly. Except for Tenant’s rights to object as set forth in this Lease, Landlord has met the requirements to cause the Delivery Date to occur upon the date of the execution and delivery of this Lease. In the event that Landlord has not delivered access to the Premises to Tenant to commence its Tenant Improvements within two (2) business days following the date of the execution and delivery of this Lease and Tenant’s proof of insurance as required herein, Tenant may terminate this Lease by delivering written notice of such termination to Landlord on or prior to the date Landlord delivers such access to Tenant.
Section 2.3    Holding Over.  Tenant shall vacate the Premises upon the expiration or earlier termination of this Lease. Following the first sixty (60) days of holdover, Tenant shall reimburse Landlord for and indemnify Landlord against all damages which Landlord incurs from Tenant’s delay in vacating the Premises. If Tenant does not vacate the Premises upon the expiration or earlier termination of the Lease and Landlord thereafter accepts Rent from Tenant, Tenant’s occupancy of the Premises shall be a “month-to-month” tenancy, subject to all of the terms of this Lease and any governmental statutes which are applicable to a month-to-month tenancy, subject to termination by either party on thirty (30) days prior written notice, but do not conflict with any provision contained in this Lease, except that the Base Rent then in effect shall be increased to one hundred twenty-five percent (125%) of the Base Rent that was payable during the final month of the Lease Term for the first sixty (60) days of any holdover and thereafter shall be increased to one hundred fifty percent (150%) of the Base Rent that was payable during the final month of the Lease Term. Landlord’s right to collect such rent shall be in addition to and shall not preclude concurrent, alternative or successive exercise of any other rights or remedies available to Landlord.
Section 2.4    Early Occupancy.  If Tenant occupies any portion of the Premises prior to the Commencement Date for business purposes, Tenant’s occupancy of the Premises shall be subject to all of the provisions of this Lease. Early occupancy of any portion of the Premises for business purposes shall not advance the Expiration Date of this Lease. Tenant shall not be required to pay Base Rent, Additional Rent or any other charges specified in this Lease during the early occupancy period, but Tenant shall be responsible for interior janitorial expenses and shall be obligated to provide the insurance required pursuant to Section 4.4, during such early occupancy.
Section 2.5    Option to Extend Lease Term. At the expiration of the original Lease Term, Tenant may extend this Lease as to the entire Premises or a portion of the Premises for two (2) extended terms of five (5) years each (each an “Extended Term”) by giving Landlord 

written notice (the “Option Notice”) of its intention to do so not later than twelve (12) months prior to the expiration of the original Lease Term, and thereafter twelve (12) months prior to the expiration of the applicable Extended Term; provided, however, that Tenant is not in material default beyond any applicable notice and cure period under the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion of the Premises. If Tenant elects to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s Affiliate. The Extended Term shall be upon all of the terms and conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: (a) any right to rent-free possession; (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) the right to the continuation of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term shall be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (95%) of the Base Rent component of the “Fair Market Rental” and one hundred percent (100%) of the economic concessions, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:
(a)    Concurrent with Tenant’s delivery of each Option Notice, Tenant shall provide Landlord with written notice of its determination of Fair Market Rental for the Premises (“Tenant’s Determination of FMR”). Within thirty (30) days after Landlord’s receipt of Tenant’s Determination of FMR, Landlord shall, by written notice delivered to Tenant, either (a) accept Tenant’s Determination of FMR (“Notice of Acceptance”), or (b) reject Tenant’s Determination of FMR (“Notice of Rejection”). If Landlord does not deliver either the Notice of Acceptance or the Notice of Rejection within said thirty (30) day period, Landlord shall be deemed to have accepted Tenant’s Determination of FMR. If Landlord delivers a Notice of Rejection, Landlord shall also concurrently deliver to Tenant Landlord’s determination of Fair Market Rental for the Premises (“Landlord’s Determination of FMR”). If Landlord delivers the Notice of Rejection within said thirty (30) day period, the parties shall negotiate in good faith in 

an effort to agree upon the Fair Market Rental within thirty (30) days after Landlord delivers the Notice of Rejection (“Negotiation Period”).
(b)    If the parties fail to agree on the Fair Market Rental for such Extended Term during the Negotiation Period, then the Fair Market Rental shall be established as set forth below. Within fifteen (15) days following expiration of the Negotiation Period, Landlord and Tenant shall mutually agree upon a broker to determine the Fair Market Rental and shall concurrently deliver their final Tenant’s Determination of FMR and final Landlord’s Determination of FMR to use for the arbitration procedure set forth below; provided however, that if the difference between the final Landlord’s Determination of FMR and the final Tenant’s Determination of FMR is five percent (5%) or less, then a broker shall not be designated and the Fair Market Rental shall equal the average of the two (2) determinations. If Landlord and Tenant cannot agree upon a broker, then either party hereunder may request that the Presiding Judge of the Maricopa County Superior Court appoint such broker. Within ten (10) business days after the selection of the broker, such broker shall select either the final Landlord’s Determination of FMR or the final Tenant’s Determination of FMR in its entirety, without averaging or otherwise adjusting such value in any manner, and shall notify the parties of his or her decision. The broker’s decision concerning the Fair Market Rental shall be binding upon the parties, shall not be subject to any right of appeal and shall constitute the Rent payable by Tenant during the Extended Term.
(c)    Landlord and Tenant intend that the “Fair Market Rental” shall be deemed to be the rent per square foot of rentable area of space that is then being charged for space located in buildings in the vicinity of the Building that are comparable in quality, age and size and offer similar amenities to the Building (“Comparable Buildings”) and involving non-renewing leases (i.e. leases where the tenant is not already occupying the leased premises) with similar terms and conditions, and involving the use of the premises for similar purposes allowed under the Lease for tenants of similar size, credit quality and stature and include current market concessions including tenant improvement allowances, abatement, downtime to secure a new tenant and build out space, brokerage commissions, a new base year (if given in comparable deals) and/or the anticipated budget for Additional Rent, inducements and other economic considerations for the lease of space comparable to the Premises then being offered in similar buildings in the Southeast Valley Submarket. The spaces used for comparison shall be comparable in size, age, quality and design to the Premises, and such spaces used for comparison shall be comparable to the Premises with respect to their location within such buildings, the quality and quantity of tenant improvements installed at each landlord’s expense, the services provided by each landlord to such tenant, and the financial strength of tenant.
(d)    The parties shall share equally in the cost of the broker. No person shall be appointed or designated a broker unless he or she is a real estate broker licensed in the State of Arizona, who specializes in the field of commercial office space leasing in the Southeast Valley market, has at least ten (10) years’ experience in leasing of commercial office space in the Southwest Valley market and is recognized within the field as being reputable and ethical. The broker shall not have ever been employed (full-time or part-time or on a consulting basis) by Landlord or Tenant.

(e)    In the event that the Fair Market Rental is not established before the commencement of the Extended Term, Tenant shall continue to pay the Base Rent in effect as of the end of the prior term; when the Fair Market Rental has been established, the new Base Rent and concessions granted pursuant to the Fair Market Rental shall be retroactively effective as of the beginning of the Extended Term, and Tenant shall pay Landlord any deficiency or Tenant shall receive a credit, as applicable, with in thirty (30) days after the establishment of the new Fair Market Rental.
Section 2.6    Partial Premises Termination Right.  Provided Tenant is not in monetary default of any provisions of this Lease beyond applicable notice and cure periods, Tenant shall have a one (1) time right to terminate this Lease as to the Partial Premises (“Partial Premises Termination Right”). Tenant’s right to terminate this Lease as to the Partial Premises shall occur on the last day of the twelfth (12th) month of the Lease Term (the “Partial Premises Termination Date”). In the event Tenant elects to exercise the Partial Premises Termination Right, such termination shall be upon the following terms and conditions:
(a)    Tenant shall give written notice of its election to terminate (the “Partial Premises Termination Notice”) in accordance with the Notice provisions herein to Landlord at least ninety (90) days prior to the Partial Premises Termination Date.
(b)    At least thirty (30) days prior to the Partial Premises Termination Date, Tenant shall pay Landlord the sum of Three Hundred Sixty Thousand and NO/100 Dollars ($360,000) (the “Partial Premises Termination Payment”). The Partial Premises Termination Payment shall be wire transferred to Landlord or otherwise paid to Landlord in immediately available funds.
(c)    Following receipt of the Partial Premises Termination Notice and the Partial Premises Termination Payment, the Lease with respect to the entire Premises shall continue in full force and effect until the Partial Premises Termination Date at which time the Lease shall be deemed terminated as to the Partial Premises. During said time, Tenant shall continue to be obligated to fully perform under the Lease and pay the Base Rent, Additional Rent, and other applicable charges (the Partial Premises Termination Payment shall not be applied to Base Rent, Additional Rent, or other applicable charges applicable to time periods prior to the Partial Premises Termination Date). In the event Tenant fails to timely give the required Partial Premises Termination Notice followed by the Partial Premises Termination Payment, the right to terminate the Partial Premises pursuant to this Section 2.6 shall be deemed null and void.
(d)    In the event of the termination of this Lease as to the Partial Premises, Landlord and Tenant shall execute an amendment to this Lease confirming the termination and such other terms as are set forth herein or otherwise agreed to between Landlord and Tenant. Notwithstanding the foregoing, failure to execute such an amendment shall not affect the validity or enforceability of this Lease as to the remainder of the Premises or the termination of this Lease with respect to the Partial Premises.

(e)    If Tenant does not timely exercise the Partial Premises Termination Right or such right is deemed null and void in accordance herewith, Tenant shall be entitled to an additional Initial Tenant Allowance for the Partial Premises at the same per RSF as the Initial Tenant Allowance set forth in the Work Letter for the Initial Premises which Initial Tenant Allowance must be utilized by Tenant within eighteen (18) months following the Effective Date and may be utilized for costs previously incurred by Tenant to improve the Partial Premises as well as costs incurred after the Partial Premises Termination Right has lapsed.
Section 2.7    Lease Termination Right.  Provided Tenant is not in material default of any provisions of this Lease beyond applicable notice and cure periods, Tenant shall have a one (1) time right to terminate this Lease as to the entire Premises or the entire space then being leased on either of the floors of the Premises (the “Lease Termination Right”). Tenant’s right to terminate this Lease shall occur on the last day of the eightieth (80th) month of the Lease Term (the “Lease Termination Date”). In the event Tenant desires to terminate this Lease on the Lease Termination Date, such termination shall be upon the following terms and conditions:
(a)    Tenant shall give written notice of its election to terminate (the “Termination Notice”) in accordance with the Notice provisions herein to Landlord at least nine (9) months prior to the Lease Termination Date. The Termination Notice shall set forth Tenant’s election to either terminate the Lease for the entire Premises or the entire space then being leased on either of the floors of the Premises. Following the Termination Notice, Tenant shall cause removal of signage in accordance with the provisions of Section 5.5 below, which shall be completed on or before the Lease Termination Date. Following such Lease Termination Date, Tenant shall be entitled to only Tenant’s Pro-Rata Share of the utilities provided to the Building and the parking allocation as stated in Section 1.10. 
(b)    On or prior to the date which is thirty (30) days prior to the Lease Termination Date, Tenant shall pay Landlord a termination payment equal to the amount of the unamortized Initial Tenant Allowance on the portion of the Premises for which Tenant has elected to terminate this Lease, the amount of the unamortized Additional Tenant Allowance (if applicable) on the portion of the Premises for which Tenant has elected to terminate this Lease and the amount of the unamortized Broker’s commissions paid by Landlord on the portion of the Premises for which Tenant has elected to terminate this Lease, all based upon a ten-year straight-line amortization and an interest rate of six percent (6%) per annum (the “Termination Payment”). At any time prior to the Lease Termination Date, Tenant may request a calculation of the Termination Payment amount from Landlord in writing. The Termination Payment shall be in the form of a wire transfer to Landlord or otherwise paid to Landlord in immediately available funds.
(c)    Following receipt of the Termination Notice and the Termination Payment, the Lease with respect to the portion of the Premises being termination shall continue in full force and effect until the Lease Termination Date at which time the Lease shall be deemed terminated as to the portion of the Premises for which Tenant has elected to terminate this Lease. During said time, Tenant shall continue to be obligated to fully perform under the Lease and pay the Base Rent, Additional Rent, and other applicable charges (the Termination Fee shall not be 

applied to Base Rent, Additional Rent, or other applicable charges applicable to time periods prior to the Lease Termination Date). In the event Tenant fails to timely give the required Termination Notice followed by the Termination Payment, the right to terminate pursuant to this Section 2.7 shall be deemed null and void.
(d)    In the event of the termination of this Lease as to only a portion of the Premises, Landlord and Tenant shall execute an amendment to this Lease confirming the termination and such other terms as are set forth herein or otherwise agreed to between Landlord and Tenant. Notwithstanding the foregoing, failure to execute such an amendment shall not affect the validity or enforceability of this Lease as to the remainder of the Premises or the termination of this Lease with respect to the portion terminated pursuant to this Section 2.7.
ARTICLE THREE:    BASE RENT
Section 3.1    Time and Manner of Payment.  Upon execution of this Lease, Tenant shall pay Landlord the Base Rent in the amount stated for the ninth (9th) full month of the Lease Term in Section 1.11(a) (not including any Base Rent due for the Partial Premises) above (“Initial Payment Upon Execution”). The Initial Payment Upon Execution shall be held by Landlord and applied to Base Rent due for the ninth (9th) full calendar month of the Lease Term. If the Commencement Date falls on a day other than the first day of the month, Tenant shall pay Landlord the Base Rent and Additional Rent due for the resulting first partial month within thirty (30) days of receipt of Landlord’s invoice. Any such first partial month Base Rent and Additional Rent shall be calculated on a prorated basis by multiplying the Base Rent and Additional Rent amounts applicable for the ninth (9th) month of the Lease Term by a fraction, the numerator of which shall be the actual number of days from the Commencement Date to the end of month and the denominator of which shall be the total number of days in the month. On the first day of the tenth (10th) full month of the Lease Term and each month thereafter, Tenant shall pay Landlord the Base Rent and Additional Rent, in advance, without offset, deduction or prior demand, except as otherwise provided herein. The Base Rent and Additional Rent shall be payable at Landlord’s address or at such other place as Landlord may designate in writing. Any payments of Base Rent and Additional Rent for any fractional calendar month shall be prorated based on actual days.
Section 3.2    Letter of Credit/Security Deposit.  Within ten (10) business days following Landlord’s and Tenant’s execution and delivery of this Lease, Tenant shall deliver to Landlord a standby, unconditional, irrevocable letter of credit in the substantially the same form as attached hereto as Exhibit E (the “Letter of Credit”) in the amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00), naming Landlord as beneficiary, issued by a national banking association reasonably approved by Landlord within five (5) business days, permitting draws thereon, as security for the full performance by Tenant of its obligations hereunder. Silicon Valley Bank is hereby approved by Landlord if selected by Tenant as the issuing bank. The term of such Letter of Credit, or any extension thereof or any replacement letter of credit, shall be for a period of not less than one year and shall be renewed annually. If the Letter of Credit is not renewed within thirty (30) days prior to its expiration date and a replacement Letter of Credit has not been provided to Landlord by such date, the Landlord may 

draw entire the Letter of Credit and hold the proceeds thereof as a cash security deposit (the “Security Deposit”) pursuant to the terms and provisions of this Lease. In the event Landlord transfers or assigns this Lease, Tenant shall cause the Letter of Credit to be reissued in the name of Landlord’s transferee or assignee and Tenant shall pay the first transfer fee in connection with any such assignment and Landlord shall pay all subsequent transfer fees.
In the event of default by Tenant under the Lease and after the expiration of any applicable notice and cure period, if any, Landlord, at its option and in addition to any other rights or remedies Landlord may have, may immediately draw all or a portion of the amount of the Letter of Credit. The sums obtained by Landlord from the Letter of Credit may be used by the Landlord to: (i) cure the default by Tenant including, but not limited to, for the payment of Base Rent, Additional Rent, late fees, interest, fees and expenses; (ii) to reimburse Landlord for the costs and expenses incurred by Landlord in connection with this Lease, including but not limited to, broker commissions and fees and the Tenant Allowance in the Work Letter; and (iii) reimburse Landlord for the reasonable direct costs of Landlord in drawing any amount under any Letter of Credit. In no event may Tenant require Landlord to draw and apply such Letter of Credit or any portion thereof for Base Rent, Additional Rent or other charges past due or to accrue under the Lease. The balance of the sums obtained from the Letter of Credit after curing of Tenant’s default, if any, shall be held by Landlord as a Security Deposit until Tenant provides a replacement Letter of Credit, in which event the monies held by Landlord shall be returned to Tenant within thirty (30) days.
Notwithstanding the foregoing, if Tenant is not then in default under the provisions of this Lease beyond applicable notice and cure periods (or as soon thereafter as all such defaults are cured), on the last day of the first (1st) year of the Lease and each year thereafter, the Letter of Credit shall be reduced by ten percent (10%) per year. If Tenant exercises the Partial Premises Termination Right, the Lease Termination Right as to only a portion of the Premises or an Option to Extend as to only a portion of the Premises, the amount of the Letter of Credit shall be reduced proportionately. In the event that Tenant complies with terms and conditions set forth in this Section 3.2, then effective as of the date of the applicable date of reduction, Tenant shall have the right to reduce the Letter of Credit amount as set forth above via the delivery to Landlord of either (x) an amendment to the existing Letter of Credit (in form and content reasonably acceptable to Landlord in accordance with this Section 3.2) modifying the Letter of Credit amount to the amount then required under this Section 3.2, or (y) an entirely new Letter of Credit (in the form and content otherwise required in this Section 3.2) in the total Letter of Credit amount then required under this Section 3.2. Any reduction in the Letter of Credit amount shall be accomplished by Tenant providing Landlord, at Tenant’s expense, with a substitute Letter of Credit or an amendment to the existing Letter of Credit in the reduced amount and otherwise in accordance with the terms and conditions of this Section 3.2. Landlord agrees to execute any documents reasonably requested by the issuer of the Letter of Credit (provided such documents are factually accurate and provided further that the subject reduction is permitted under the terms of this Section 3.02) within ten (10) business days after receipt of written request from Tenant or such issuer in order to accomplish such reductions and Landlord’s failure to timely execute and deliver such documents shall be a default under this Lease upon the expiration of five (5) business days’ notice from Tenant that Landlord has failed to perform such obligation (the “L-C 

Return Default”). Upon any such L-C Return Default, Landlord shall be liable to Tenant for a late delivery fee equal to $250 per day that such L-C Return Default continues.
In the event Landlord holds a Security Deposit as a result of the drawing on the Letter of Credit, such Security Deposit shall be security for the full performance by Tenant of its obligations hereunder. If Tenant defaults under any provision hereof beyond applicable notice and cure periods, Landlord shall be entitled, at its option, to apply or retain all or any part of the Security Deposit for the payment of any Base Rent, Additional Rent, other sum owing by Tenant to Landlord, or any amount which Landlord may become obligated to spend because of Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer because of Tenant’s default. If any portion of the Security Deposit is so used or applied, Tenant shall, within ten (10) business days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its full amount. Tenant’s failure to do so shall be a material default under this Lease. Landlord shall not be required to keep the Security Deposit separate from its other accounts and no trust relationship is created with respect to the Security Deposit. Tenant shall not be entitled to interest on the Security Deposit. If Tenant fully performs every provision of this Lease to be performed by it, the Letter of Credit and Security Deposit or any balance thereof shall be returned to Tenant within thirty (30) days following the expiration of the term of this Lease or any period of holding over. Landlord’s rights with respect to the Security Deposit and Letter of Credit shall be in addition to and shall not preclude concurrent, alternative or successive exercises of any other rights or remedies available to Landlord.
Section 3.3    Termination; Advance Payments.  Upon termination of this Lease under Article Seven (Damage or Destruction), Article Eight (Condemnation) or any other termination not resulting from Tenant’s default, and after Tenant has vacated the Premises in the manner required by this Lease, Landlord shall refund or credit to Tenant (or Tenant’s successor) within thirty (30) days the unused portion of the Security Deposit, any advance rent or other advance payments made by Tenant to Landlord, and any amounts paid for real property taxes and other reserves which apply to any time periods after termination of the Lease.
Section 3.4    Rental/Privilege Taxes.  Tenant shall pay Landlord any and all privilege, commercial rental tax, transactional, excise or other taxes (not including Landlord’s income taxes) imposed or levied by any taxing authority against Landlord for, or on Landlord’s right to receive or the receipt by Landlord of, Base Rent, Additional Rent and any other charges or sums payable by Tenant under this Lease, said taxes to be paid and due at the time provided for payment of said Base Rent, Additional Rent or other sums or charges by Tenant.
ARTICLE FOUR:    OTHER CHARGES PAYABLE BY TENANT
Section 4.1    Definitions. For purposes of this Article 4 and the Lease:
(a)    “Tenant’s Pro-Rata Share” means the ratio, expressed as a percentage, of the rentable square feet in the Premises, to the entire rentable square footage in the Building. Tenant’s Pro-Rata Share as of the date of this Lease is as set forth in Section 1.12 above. The numerator of Tenant’s Pro-Rata Share is subject to adjustment if the rentable square 

footage of the Premises changes pursuant to the provisions of this Lease because of an actual increase or decrease in the size of the Premises.
(b)    “Calendar Year” shall mean the 12-month period beginning January 1 and ending December 31 and each 12-month period thereafter.
(c)    “Real Estate Taxes” shall mean all taxes, assessments, levies, and other charges, improvement lien assessments including, but not limited to, general and special, ordinary and extraordinary, foreseen and unforeseen, of any kind and nature whatsoever, which shall or may be during the Lease Term assessed, levied, charged, confirmed, or imposed upon or become payable out of or become a lien on the Project or any portion thereof (including personal property taxes on equipment, fixtures and other property of Landlord located on the Project and used in connection with the operation thereof), but shall not include any estate, succession, inheritance, or transfer taxes, excess profits taxes, franchise taxes, gift taxes, capital stock taxes, excise taxes, tax penalties, interest or late charges, or any income, profits, or revenue tax imposed upon the rent received as such by Landlord under this Lease; provided, however, that if at any time during the Lease Term, the present method of real estate taxation or assessment shall be so changed that there shall be substituted for the whole or any part of such taxes, assessments, levies, impositions, or charges now or hereafter levied, assessed, or imposed on real estate and improvements, a capital tax or other tax imposed on the rents or income received by Landlord from the Project or the rents or income reserved herein, or any part thereof, then all such capital taxes or other taxes shall, to the extent that they are so substituted, be deemed to be included within the term “Real Estate Taxes.” Tenant shall pay all taxes charged against trade fixtures, furnishings, equipment or any other personal property belonging to Tenant. Tenant shall use Tenant’s commercially reasonable efforts to have personal property taxed separately from the Premises. If any of Tenant’s personal property is taxed with the Premises, Tenant shall pay Landlord the taxes for the personal property within thirty (30) days after Tenant receives a written statement from Landlord for such personal property taxes. At such times as Tenant is leasing the entire Building, commencing after the calendar year 2021, Tenant, at its sole cost and expense, shall have the right to apply for a reduction in the Real Estate Taxes assessed against the Project. At such times as Tenant is not leasing the entire Building, then upon Tenant’s request, Landlord shall apply for a reduction in Real Estate Taxes (the cost of which shall be included in Real Estate Taxes) and if Landlord opts not to so apply, Tenant may apply for such a reduction with a tax consultant reasonably approved by Landlord. Refunds of Real Estate Taxes shall be credited against Real Estate Taxes and refunded to Tenant regardless of when received, based on the Calendar Year to which the refund is applicable. All special assessments which may be paid in installments shall be paid by Landlord in the maximum number of installments permitted by law and not included in Real Estate Taxes except in the year in which the assessment is actually paid. If Real Estate Taxes for any period during the Lease Term or any extension thereof are increased or decreased after payment thereof for any reason, including, without limitation, error or reassessment by applicable governmental or municipal authorities, Tenant shall pay Landlord, within thirty (30) days following written demand by Landlord, Tenant’s Share of any such increased Real Estate Taxes included by Landlord as Real Estate Taxes pursuant to the terms of this Lease, or Landlord shall provide Tenant with a credit against Rent next coming due under the Lease in the amount of Tenant's Pro-Rata Share of any such 

decreased Real Estate Taxes included by Landlord as Real Estate Taxes pursuant to the terms of the Lease (until such amount has been fully credited to Tenant), as the case may be.
(d)    “Operating Expenses” means for the purposes hereof all costs, expenses, and fees incurred by Landlord in owning, managing, maintaining, repairing, replacing and operating the Premises, Building and surrounding parking lots, entryways and Common Area within the Project (whether or not now customary or in the contemplation of the parties) during any Calendar Year or portion thereof, all as determined in accordance with sound real estate management practices consistently applied, including, but not limited to, the following: (a) Real Estate Taxes; (b) property management and building superintendent fees (which may include market rate fees for such services payable to Landlord or its related entities who perform such services) not to exceed three percent (%) of gross revenues from the Project; the cost of security personnel, facility engineers and services of independent contractors; and wages, charges, taxes, fringe benefits or other labor costs; (c) equipment, supplies and materials (new or replacement); the cost of water, sewer service, gas, electricity and other utilities and services (except telephone, cable and internet service for the Tenant, which shall be the obligation of each Tenant, and any utilities for which a separate meter has been installed for the Premises, which shall be paid directly to the supplier by Tenant; utilities paid directly to the supplier by other tenants pursuant to the terms of their leases shall also be excluded from Operating Expenses); the cost of refuse, garbage and trash removal, collection and disposal and the cost of pest control; (d) the cost of janitorial service (if provided by Landlord); (e) the cost of upkeep, repair and maintenance of the Premises and Building, including but not limited to, the roof and structural elements thereof and any elevators, plumbing, electrical, heating and air conditioning systems and the cost of service maintenance and replacement contracts relating thereto; the cost of upkeep and maintenance of any parking areas (including any covered parking canopies), sidewalks, hallways, stairways, toilets and other common facilities and the cost of service maintenance and replacement contracts relating thereto; the cost of landscaping, landscape maintenance and replacement; reclaimed water usage for landscaping; the cost of cleaning and other care of the Project, the Building, the Premises and the improvements comprising the same; (f) insurance premiums and other costs for fire and extended coverage insurance, comprehensive public liability insurance and other insurance paid by Landlord in such amounts as Landlord may reasonably determine in accordance with Sections 4.4(a) and 4.4(b) and consistent with coverages carried by landlords of Comparable Buildings; any deductible amount under Landlord’s insurance maintained pursuant to Section 4.04 and consistent with coverages carried by landlords of Comparable Buildings; (g) expenditures for such capital improvement items except as excluded below, provided, however, the cost of any such capital expenditures shall be amortized in accordance with generally accepted accounting principles over the reasonably anticipated useful life of such capital improvements; and (h) the expenses incurred by or payable by Landlord for the operation, maintenance and repair of the Common Area of the Project and the expenses payable by Landlord under any document recorded against or for the benefit of the Project. Notwithstanding the foregoing, for purposes of this Lease, Operating Expenses shall not, however, include any of the following unless such expenses are caused by Tenant, its employees, guests or invitees:

(1)    Wages, salaries, fees, and fringe benefits paid to executive personnel or officers or partners of Landlord, or any other personnel located at Landlord’s corporate office (except for facility engineers that utilize office space of Landlord), or to anyone above the level of Project manager;
(2)    Any charge for depreciation or amortization of the Building or equipment and any interest or other financing charge (except that interest and amortization shall be included with respect to permitted capital expenditures as provided herein);
(3)    All costs relating to activities for the marketing, solicitation and execution or renewal of leases of space in the Project, including, without limitation, advertising, printing costs and brochures, space planning, tenant allowances, leasehold improvements and other tenant concessions;
(4)    Costs associated with the sale or refinancing of the Project, including, without limitation, consulting or brokerage commissions, origination fees or points, and interest cost or charges;
(5)    Cost of decorating, redecorating, or tenant installations incurred in connection with preparing space for a new tenant (or retaining a tenant);
(6)    All costs for which Tenant or any other tenant in the Project is being charged other than pursuant to the operating expense clauses;
(7)    The cost of correcting defects in the construction of the Project or in the Project equipment;
(8)    The cost of any capital repair made by Landlord because of the total or partial damage or destruction of the Project or the condemnation of a portion of the Project exclusive of commercially reasonable insurance deductibles consistent with Comparable Buildings;
(9)    Any increase in insurance premium to the extent that such increase is caused or attributable to the particular use, occupancy or act of another tenant or Landlord;
(10)    The cost of any items for which Landlord is reimbursed by insurance or otherwise compensated by parties other than tenants of the Project pursuant to clauses similar to this paragraph;
(11)    The cost of any repairs, alterations, additions, changes, replacements, and other items related to HVAC systems, which under sound real estate accounting principles are properly classified as capital expenditures (the foregoing exclusion shall be applicable during the original Lease Term, but shall not apply to any extended Term hereunder) and all other capital expenditures and improvement items shall be excluded from Operating Expenses except for capital expenditures which are reasonably necessary for repairs 

and replacements to maintain the Building and Project in good operating order and condition so long as the cost of any such capital expenditures shall be amortized in accordance with generally accepted accounting principles over the reasonably anticipated useful life of such capital expenditure;
(12)    The cost of structural repairs or replacement, including roof, exterior walls and glass and subsurface/foundation work;
(13)    Any operating expense representing any amount paid to a related corporation, entity, or person which is in excess of the amount which would be paid to a qualified first class unaffiliated third party on a competitive basis;
(14)    The cost of any work or service performed for or facilities furnished to any tenant of the Project, without charge, to a greater extent or in a manner more favorable to such tenant than that performed for or furnished to Tenant;
(15)    Costs arising from the negligence or fault of Landlord;
(16)    Costs incurred to comply with laws relating to the removal of Hazardous Materials (as defined under applicable law) which located on the Project;
(17)    Penalties and interest charges as a result of not paying bills when due or within any grace period;
(18)    Ground rent or similar payments to a ground lessor;
(19)    Costs related to Landlord’s charitable or political contributions;
(20)    Costs including attorney’s fees arising from claims, potential disputes or disputes between Landlord and tenants of the Project;
(21)    Any profit related to the excess collection of Operating Expenses or collection of Operating Expenses in excess of 100% of the actual Operating Expenses;
(22)    Accounting and legal fees related to construction, leasing, sale or litigation with respect to the Project;
(23)    Penalties and fines of any kind including non-compliance with any applicable building or fire code;
(24)    Any reserves;
(25)    Principal payments on mortgages and other debt costs, if any;

(26)    Any bad debt loss, rent loss, or reserves for bad debts or rent loss;
(27)    Costs associated with the operation of the business of the partnership or entity which constitutes the Landlord, as the same are distinguished from the costs of operation of the Project, including partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of the Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of the Landlord’s interest in the Project, and costs incurred in connection with any disputes between Landlord and its employees, between Landlord and Project management, or between Landlord and other tenants or occupants;
(28)    The wages and benefits of any employee who does not devote substantially all of his or her employed time to the Project unless such wages and benefits are reasonably prorated to the Project; provided, that in no event shall Operating Expenses for purposes of this Lease include wages and/or benefits attributable to personnel above the level of Project manager;
(29)    Rent for any office space occupied by Project management personnel to the extent the size or rental rate of such office space exceeds the size or fair market rental value of office space occupied by management personnel of the Comparable Buildings, with adjustment where appropriate for the size of the applicable project, and if used for the management of other projects as well, such rent shall be appropriately pro-rated;
(30)    Insurance deductibles in excess of customary deductible amounts carried by landlords of the Comparable Buildings; provided, however, that in connection with any insurance deductible amounts included in Operating Expenses as a result of an earthquake which are for items otherwise classified as capital items, such amounts shall be amortized into Operating Expenses at the cost and over the term as if a capital expenditure;
(31)    Costs reimbursed to Landlord under any warranty carried by Landlord for the Building and/or the Project, which warranties Landlord shall use commercially reasonable efforts to enforce. Landlord shall (i) not make a profit by charging items to Operating Expenses that are otherwise also charged separately to others, and (ii) Landlord shall not collect Operating Expenses from Tenant and all other tenants/occupants in the Building in an amount in excess of what Landlord incurred for the items included in Operating Expenses; and
(32)    Cost of interior janitorial services if Tenant provides its own janitorial services.
Any refunds or discounts actually received by Landlord for any category of Operating Expenses shall reduce Operating Expenses in the applicable Calendar Year (pertaining to such category of Operating Expenses). In the event any facilities, services or utilities used in connection with the Project are provided from another building owned or operated by Landlord or vice versa, the costs incurred by Landlord in connection therewith shall be allocated to 

Operating Expenses by Landlord on a reasonably equitable basis. In addition, all assessments and premiums which are not specifically charged to Tenant because of what Tenant has done, which can be paid by Landlord in installments, shall be paid by Landlord in the maximum number of installments permitted by law (except to the extent inconsistent with the general practice of the Comparable Buildings in the vicinity of the Building or if such installment payments result in additional fees and costs) and shall be included as Operating Expenses in the year in which the assessment or premium installment is actually paid.
Section 4.2    Operating Expenses; Late Charges; Interest.
(a)    Operating Expense Payment.  In addition to the Base Rent, for each Calendar Year during the Term, Tenant shall pay Landlord Tenant’s Pro-Rata Share of the Operating Expenses (calculated on a per rentable square foot per annum basis) (the “Operating Expense Payment”). The Operating Expense Payment shall be made by Tenant to Landlord in accordance with the terms of this Section 4.2 and shall be subject to adjustment as provided for in this Section 4.2.
(b)    Monthly Payment of Estimated Amount.  For each Calendar Year, Tenant shall pay, at the time of payment of each monthly installment of Base Rent, an amount equal to one-twelfth (1/12) of Landlord’s reasonable estimate of the sum of the Operating Expense Payment to be due for the then current Calendar Year, if any, which statement shall be in reasonable detail by major general categories of expenses. Said monthly payments shall be an estimate of the Operating Expense Payment for the then current Calendar Year and shall be subject to adjustment based upon the final calculation of the Operating Expense Payment as provided for in this Section 4.2. Tenant shall begin paying the latest estimate thirty (30) days after receipt thereof.
(i)    Within ninety (90) days after the end of each Calendar Year, Landlord shall furnish to Tenant a written statement setting forth the Operating Expenses for the most recently completed Calendar Year and Tenant’s Operating Expense Payment, which statement shall be in reasonable detail by major general categories of expenses. Landlord’s failure to render a statement with respect to increases in Operating Expenses for any Calendar Year shall not prejudice Landlord’s right to thereafter render a statement with respect thereto or with respect to any other Calendar Year. Notwithstanding the immediately preceding sentence, Tenant shall not be responsible for Tenant’s Share of any Operating Expenses attributable to any Calendar Year which are first billed to Tenant more than two (2) calendar years after the earlier of the expiration of the applicable Calendar Year or the Expiration Date, provided that in any event Tenant shall be responsible for Tenant’s Pro-Rata Share of Operating Expenses levied by any governmental authority or by any public utility companies at any time following the Expiration Date which are attributable to any Calendar Year (provided that Landlord delivers Tenant a bill (a “Supplemental Statement”) for such amounts within two (2) years following Landlord’s receipt of the bill therefor).
(ii)    After the end of each Calendar Year, including after this Lease has terminated or expired, Tenant shall make or receive for any Calendar Year, a payment or a credit equal to any excess or deficiency between the actual Operating Expense Payment, if 

any, owed by Tenant for the most recent Calendar Year and the amounts paid by Tenant as an estimate of the Operating Expense Payment. Tenant shall pay such Operating Expense Payment or receive such credit against future payments within thirty (30) days following receipt of notice thereof and receipt of the statement described herein.
(iii)    Tenant’s obligation with respect to the Operating Expense Payment shall survive the expiration or early termination of the Lease, and all such payments shall be prorated to reflect the actual term of this Lease.
(iv)    Landlord agrees that upon written request of Tenant made within twelve (12) months of receiving the annual statement of Tenant’s Pro-Rata Share, Landlord shall make the books and records for said prior year available for audit at its offices in the greater Phoenix area or the greater San Diego area during normal business hours. Except as set forth below, any audit shall be conducted by a regional or national accounting firm, a reputable firm which regularly provides such services or a professional brokerage firm that specializes in such audits and such services shall not, in any manner, be provided on a contingency basis. Landlord agrees to pay one-half of the reasonable costs and expenses of an audit on an annual basis. If the audit confirms that the actual Operating Expenses charged to Tenant during the prior Calendar Year have been overstated by Landlord by more than five percent (5%), Landlord shall refund the entire excess within thirty (30) days. If the audit confirms that the Operating Expenses charged to Tenant during the prior Calendar Year have been undercharged by Landlord by more than five percent (5%), Tenant shall pay the entire amount understated within thirty (30) days. The annual statement of Tenant’s Pro-Rata Share shall be deemed binding and conclusive unless Tenant timely provides an audit notice to Landlord, thereafter audits the books and records within ninety (90) days of the notice date and the date Landlord makes all of its books and records reasonably related to such statement available to Tenant and said audits confirms an over or understated amount. If Landlord disagrees with the results of Tenant’s audit and the parties cannot otherwise agree, then Landlord and Tenant’s auditor shall together select a neutral auditor of similar qualifications to conduct a review of such books and records (if such neutral auditor’s review reveals that Operating Expenses were overstated by Landlord by more than five percent (5%), Landlord shall bear all fees of such neutral auditor and if such neutral auditor’s review reveals less than a 5% over statement, Tenant shall bear all such costs), and the determination of Operating Expenses reached by such neutral auditor shall be final and conclusive.
(c)    Late Charges. Tenant’s failure to pay Rent promptly may cause Landlord to incur unanticipated costs. The exact amount of such costs is impractical or extremely difficult to ascertain. Such costs may include, but are not limited to, processing and accounting charges and late charges which may be imposed on Landlord by any ground lease, mortgage or trust deed encumbering the Premises. Therefore, if Landlord does not receive any rent payment within five (5) business days after written notice that such amount is past due, Tenant shall pay Landlord a late charge equal to five percent (5%) of the overdue amount. The parties agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of such late payment.

(d)    Interest on Past Due Obligations. Any amount owed by Tenant to Landlord which is not paid when due shall bear interest at the rate of equal to the floating commercial loan rate announced from time to time by Bank of America, a national banking association, or its successor, as its prime rate, plus 2% per annum (the “Interest Rate”) from the due date of such amount. However, interest shall not be payable on late charges to be paid by Tenant under this Lease. The payment of interest on such amounts shall not excuse or cure any default by Tenant under this Lease. If the interest rate specified in this Lease is higher than the rate permitted by law, the interest rate is hereby decreased to the maximum legal interest rate permitted by law.
(e)    Controllable Operating Expenses.  Landlord hereby agrees that any increases in the Controllable Operating Expenses (as hereinafter defined) shall not exceed five percent (5%) cumulatively from the previous years’ Controllable Operating Expenses as to Tenant’s Pro-Rata Share (it is recognized that that Tenant holds a Partial Premises Termination Right and Lease Termination Right and that extra expenses incurred by Landlord based upon Tenant’s election to lease less than the entire Premises, shall be permitted to be charged as Operating Expenses and not excluded because they have increased Operating Expenses beyond the foregoing limit, if such costs and expenses were not payable by Landlord while Tenant leased the entire Building). “Controllable Operating Expenses” shall mean all Operating Expenses and expenses excluding insurance premiums, Real Estate Taxes, utilities for the Common Areas, costs of security, damages not covered by insurance resulting from acts of god, damages not covered by insurance caused by Tenant, its employees, guests or invitees and additional costs incurred while Tenant no longer leases the entire Premises, owner’s association fees or costs and expenses paid under the applicable covenants, conditions and restrictions, applicable easements, or any document recorded against or for the benefit of the Project, fees for required licenses and permits for the Building, the costs of any unionized labor or government mandated wage or benefit increases associated with services provided to the Building, and similar costs and expenses where the rates are set by third party providers.
Section 4.3    Utilities and Services to the Premises.  Tenant shall contract directly with the appropriate supplier and shall pay all the cost of all electrical power, telephone, cable, internet, and such other utilities and services supplied directly to the Premises. All natural gas, sewer service, water and refuse disposal or other such services for the Premises are jointly metered with other tenants or Common Areas of the Building or other property, such services shall be provided by Landlord. Tenant shall enter into an HVAC maintenance agreement reasonably acceptable to Landlord and Tenant shall have 100% control of the HVAC systems serving the Premises, provided that any capital expenditures shall be allocated between Landlord and Tenant as provided in Section 4.1 above. All utilities and services provided by Landlord to the Premises, Building and Common Areas shall be included within Operating Expenses as set forth in more detail in Sections 4.01 and 4.02. Tenant shall not make connection to the utilities except by or through then existing outlets and shall not install or use machinery or equipment in or about the Premises that causes extra burden upon the utilities or services, including but not limited to security services, if any. Landlord shall require Tenant to reimburse Landlord for any excess expenses or costs incurred by Landlord that may arise out Tenant’s use of the Premises which causes an extra burden upon the utilities or services beyond Tenant’s Pro-Rata Share of 

such utilities or services. Except as otherwise provided herein, Landlord shall not be liable for, nor shall Tenant be entitled to, any abatement or reduction of rental or other sums due hereunder by reason of Landlord’s failure to furnish any services or utilities when such failure is caused by the acts of Tenant or by any cause beyond the reasonable control of Landlord, including but not limited to accidents, weather, utility outages, breakage, remodeling, improvements, material shortage, shipping and delivery delays, repairs, strikes, lockouts or other labor disturbances or labor disputes of any character, or by any other cause, similar or dissimilar. Except as otherwise provided herein, it is expressly understood that Landlord shall not be liable under any circumstances for loss or damage, however occurring, incurred in connection with or incidental to the failure to furnish any of the foregoing. In addition, it is expressly understood that Landlord shall not be liable under any circumstances for consequential, speculative or punitive damages. Landlord shall provide Tenant with appropriate contact information that Tenant may contact in the event of an emergency at the Premises or Building twenty-four (24) hours per day, seven (7) days per week. Tenant, at its sole expense, may, as part of Tenant Improvements or any subsequent alternative, install a supplemental HVAC systems for use in the “server room” and other specific portions of the Premises (the “Tenant HVAC System”). In the event that the Tenant HVAC System is not installed as a “Tenant Improvement,” as that term is defined in the Work Letter, in accordance with the terms of the Work Letter, the Tenant HVAC System shall be installed, if at all, by Tenant in accordance with the terms of Section 6.5, below. In the event that the Tenant HVAC System is installed, Tenant acknowledges that Tenant shall not be entitled to remove the Tenant HVAC System and that the Tenant HVAC System shall become a part of the realty and belong to Landlord and shall be surrendered with the Premises upon the expiration or earlier termination of this Lease. Subject to Tenant’s compliance with all applicable laws, Tenant shall be permitted, at its sole cost and expense, to contract with telecommunications and internet providers of its choice to provide telecommunications and internet service to the Premises (each, a “Communications Provider”). Landlord agrees that, if Tenant contracts with Communications Providers as voice/internet providers, Landlord will enter into such reasonable contracts with such Communications Provider to provide access at Tenant’s sole cost and expense. Any risers, wiring or infrastructure reasonably required to meet Tenant’s excess electrical requirements shall, upon Tenant’s written request, be installed by Landlord, at Tenant’s sole cost, if, in Landlord’s reasonable judgment, the same shall not (i) adversely affect the Project, the Building or the Premises, (ii) cause or create a dangerous or hazardous condition, (iii) entail excessive or unreasonable alterations, repairs or expenses, or (iv) interfere with or disturb other tenants or occupants of the Building. Tenant shall be obligated to pay Landlord a construction management fee of five percent (5%) of the costs and expenses of such installations.
In the event Tenant terminates this Lease as to any portion of the Premises, Landlord may elect to have electrical power or other utilities to the Premises be provided by Landlord utilizing a submeter system or by installing separate meters. If Landlord elects to utilize a submeter system, Landlord will separately state the cost of Tenant’s share of the electrical power on the Monthly Rent Invoice and Tenant will pay the amount to Landlord as Additional Rent. Landlord will include a copy of the monthly report from the submeter system with the Monthly Rent Invoice and will report Tenant’s kilowatt usage for the period billed. Landlord may, in its reasonable discretion and at Tenant’s sole cost and expense, install supplemental equipment and/or separate metering applicable to Tenant’s excess usage or loading. Tenant shall pay Landlord 

for such excess usage as Additional Rent. Notwithstanding the foregoing, Tenant, at no charge to Tenant, shall have from time to time (i) the right to use existing Building’s risers and/or install additional risers for Tenant’s cabling (provided such use does not interrupt or interfere with the rights of other tenants and quiet enjoyment of other tenants in the Building), and (ii) unrestricted access to all areas within the Premises and Building, including the Building’s MPO (main point of entry), to install the required infrastructure to service Tenant’s IT and telecommunications requirements.
Section 4.4    Insurance Policies.
(a)    Liability Insurance. From the Effective Date through the Expiration Date, Tenant shall maintain a policy of commercial general liability insurance (sometimes known as broad form commercial general liability insurance) insuring Tenant against liability for bodily injury, property damage (including loss of use of property) and personal injury arising out of the operation, use or occupancy of the Premises and Project. Tenant shall name Landlord and upon notification by Landlord to Tenant, Landlord’s boards, directors, officers, employees, agents and subagents, and such other related parties as Landlord may request, individually and collectively, as additional insureds under such policy. Tenant shall also name any lender whose loan is secured by the Project. The initial amount of such insurance shall be Five Million Dollars ($5,000,000) per occurrence and shall be subject to commercially reasonable periodic increase based upon increases consistent with the increases required of other landlords of similar buildings, similar premises and similar tenants in the Southeast Valley Submarket. The liability insurance obtained by Tenant under this Section 4.4(a) shall (i) be primary and non-contributing; (ii) contain cross-liability clauses; and (iii) insure Landlord against Tenant’s performance under Section 5.8, if the matters giving rise to the indemnity under Section 5.08 result from the negligence or other acts or failure to act where a duty to act exists on the part of Tenant and are covered by a standard CGL policy. The amount and coverage of such insurance shall not limit Tenant’s liability nor relieve Tenant of any other obligation under this Lease. Tenant shall be liable for payment of any deductible amount under Tenant’s insurance policies maintained pursuant to this Section 4.4. Landlord may also obtain commercial public liability insurance in an amount and with coverage determined by Landlord insuring Landlord against liability arising out of ownership, operation, use or occupancy of the Project but not in excess of policy limits or deductibles carried by landlords of Comparable Buildings. The policy obtained by Landlord shall not be contributory and shall not provide primary insurance. Tenant shall also obtain such other insurance and in such amounts as may from time to time be reasonably required by Landlord against other insurable hazards which at the time are customarily insured against in the case of premises similarly situated in Maricopa County, Arizona, with due consideration for the height and type of building, its construction, use and occupancy.
(b)    Property and Rental Income Insurance.  During the Lease Term, Landlord shall maintain policies of insurance covering loss of or damage to the Building in the full amount of its replacement value consistent with policies carried by landlords of Comparable Buildings. Such policy shall contain an Inflation Guard Endorsement and shall provide protection against all perils included within the classification of fire, extended coverage, 

vandalism, malicious mischief, special extended perils (all-risk), sprinkler leakage and any other perils which Landlord deems reasonably necessary. Landlord shall have the right to obtain flood and earthquake insurance if required by any lender holding a security interest in the Building but not in excess of policy limits or deductibles carried by landlords of Comparable Buildings. Landlord shall not obtain insurance for Tenant’s fixtures, furnishings, equipment, other personal property, or building improvements installed by or for Tenant on the Premises except fixtures and building improvements Landlord elects to insure in Landlord’s sole discretion. Tenant shall maintain policies of insurance coverage loss or damage to Tenant’s fixtures, furnishings, equipment, other personal property and building improvements installed by or for Tenant on the Premises in the full amount of their replacement value. During the Lease Term, Landlord shall also maintain (i) a rental income insurance policy, with loss payable to Landlord, in an amount equal to one year’s Base Rent, plus, to the extent available and deemed appropriate by Landlord, the Additional Rent, including without limitation estimated real property taxes and insurance premiums and (ii) such other insurance coverage as is customarily carried by landlords of Comparable Buildings. In no event shall Tenant be required to carry earthquake or sprinkler leakage coverage. Tenant or Tenant’s insurance shall be liable for the payment of Tenant’s Pro-Rata Share of any deductible amount under Landlord’s insurance covering damage to the Building or Tenant’s insurance policies maintained pursuant to this Section 4.4, in an amount not to exceed Fifty Thousand Dollars ($50,000). Tenant shall not do or permit to be done anything which invalidates any such insurance policies.
(c)    Automobile Insurance.  If Tenant utilizes vehicles in connection with the operation of its business at the Premises, Tenant shall keep and maintain commercial automobile liability insurance insuring all owned, non-owned and hired vehicles used in the conduct of Tenant’s business and operated upon or parked upon the Premises and Project with limits of liability not less than One Million and 00/100 Dollars ($1,000,000.00) combined single limit for both bodily injury and property damage. Tenant shall increase the foregoing limits if Landlord deems such increase desirable to protect Tenant and/or Landlord and is consistent with requirements of landlords of Comparable Buildings. Tenant shall name Landlord, Landlord’s property management company and any lender whose loan is secured by the Project as additional insureds under such policy.
(d)    Tenant’s Worker’s Compensation Insurance.  Tenant shall keep and maintain a standard form worker’s compensation and employer’s liability insurance covering all Tenant’s employees for injury or illness suffered in the course of or arising out of their employment, providing statutory worker’s compensation benefits and employer’s liability limits of not less than One Million and 00/100 Dollars ($1,000,000.00).
(e)    Tenant Activities.  Tenant shall not engage in or permit any activity which will cause the cancellation or increase the existing premium rate of fire, liability, or other insurance on or relating to the Premises, the Building or the Project. In the event Tenant engages in or permits any activity that causes an increase in the existing premium rate of any such insurance, in addition to any other remedies available to Landlord under the terms of this Lease, Landlord shall have the right to demand and receive from Tenant an amount equal to the increase in the existing premium rate. Tenant shall not sell or permit to remain in or about the 

Premises any article that may be prohibited by commercially reasonable special form, fire, and extended coverage insurance policies. Tenant shall comply with all commercially reasonable requirements pertaining to the use of the Premises necessary for maintenance of such fire and public liability insurance as Landlord may from time to time obtain for the Premises, the Building, or the Project.
(f)    Payment of Premiums.  Tenant shall timely pay all premiums for the insurance policies obtained by Tenant and described in this Section 4.4 prior to the date due (“Premium Statement”). For any insurance policies maintained by Tenant hereunder, Tenant shall provide Landlord with written evidence of payment of the premiums thereunder prior to the expiration date of such insurance policy. Premiums for insurance policies obtained by Landlord and described in Sections 4.4(a) and 4.4(b) shall be paid by Landlord and included within Operating Expenses as set forth in more detail in Section 4.1(d).
(g)    Intentionally deleted.
(h)    General Insurance Provisions.
(i)    Before the Effective Date, Tenant shall deliver to Landlord a copy of any policy of insurance which Tenant is required to maintain under this Section 4.04. Prior to the expiration of any such policy, Tenant shall deliver to Landlord a renewal of such policy. As an alternative to providing a policy of insurance, Tenant shall have the right to provide Landlord a certificate of insurance from the insurance company showing that the insurance which Tenant is required to maintain under this Section 4.4 is in full force and effect and containing such other information which Landlord reasonably requires.
(ii)    Any insurance which Tenant is required to maintain under this Lease shall include a provision which requires the insurance carrier to give Landlord not less than thirty (30) days’ written notice prior to any cancellation or modification of such coverage. If the insurer is unable or unwilling to provide such notice to Landlord, Tenant shall be required to provide notice to Landlord not less than twenty (20) days prior to any cancellation or modification of such coverage.
(iii)    If Tenant fails to deliver any policy, certificate or renewal to Landlord required under this Lease within the prescribed time period or if any such policy is cancelled or coverage is reduced below what is required hereunder during the Lease Term without Landlord’s consent, Landlord may obtain such insurance, in which case Tenant shall reimburse Landlord for the cost of such insurance within thirty (30) days after receipt of a statement that indicates the cost of such insurance.
(iv)    Tenant shall maintain all insurance required under this Lease with companies holding an “A.M. Best’s Financial Strength Rating” of A- or better and a Best’s Financial Size Category of VII or better as set forth in the most current issue of “A.M. Best’s Credit Rating” as set forth in the most current issue of “A.M Best’s Credit Rating” and that are authorized to do business in Arizona. Coverage must be written on an occurrence basis and shall be maintained without interruption from the date of the commencement of this Lease 

until the date of termination of this Lease. Landlord and Tenant acknowledge the insurance markets are rapidly changing and that insurance in the form and amounts described in this Section 4.04 may not be available in the future. Tenant acknowledges that the insurance described in this Section 4.04 is for the primary benefit of Landlord. If at any time during the Lease Term, Tenant is unable to maintain the insurance required under the Lease, Tenant shall nevertheless maintain insurance coverage which is customary and commercially reasonable in the insurance industry for Tenant’s type of business, as that coverage may change from time to time. Landlord makes no representation as to the adequacy of such insurance to protect Landlord’s or Tenant’s interests. Landlord and Tenant acknowledge that Tenant shall have the right to cover its insurance requirements set forth in this Section 4.04 with a combination of general liability, umbrella insurance and blanket coverages, provided that the amounts (based upon the general liability policy and the specific allocations of the umbrella policy to the Premises) and other conditions required to be satisfied by the terms of this Section 4.04 are satisfied by such coverages.
(v)    Landlord and Tenant each hereby waive any and all rights of recovery against the other, and against the officers, employees, agents or representatives of the other, for loss of or damage to the Premises, the Building, the Project, its property or the property of others under its control, if such loss or damage is covered by any insurance policy in force (whether or not described in this Lease) at the time of such loss or damage (or would have been covered had the insurance required by this Lease been carried). Upon obtaining the required policies of insurance, Landlord and Tenant shall give notice to the insurance carriers of this mutual waiver of subrogation. Each policy of property insurance obtained by Landlord and Tenant pursuant to the provisions of this Lease shall include a waiver of the insurer’s right of subrogation against Landlord or Tenant (as the case may be), and shall contain an endorsement to the effect that any loss payable under such policy shall be payable notwithstanding any act or negligence of Landlord or Tenant (as the case may be), or any agent, contractor, employee or invitee of Landlord or Tenant (as the case may be), which might, absent such agreement, result in the forfeiture of payment for such loss. If a party either does not insure for full replacement value or fails to obtain the insurance required hereunder, same shall not affect this waiver. If either party fails to carry the amounts and types of insurance required to be carried by it pursuant to this Section 4.4, in addition to any remedies the other party may have under this Lease, such failure shall be deemed to be a covenant and agreement by such party to self-insure with respect to the type and amount of insurance which such party so failed to carry, with full waiver of subrogation with respect thereto (provided that nothing contained herein shall be construed as granting Landlord or Tenant the right to self-insure the obligations set forth in this Section 4.4).
(vi)    None of the requirements contained herein as to the types, limits, or Landlord’s approval of insurance coverage to be maintained by Tenant are intended to and shall not in any manner, limit, qualify, or quantify the liabilities and obligations assumed by Tenant under this Lease or any other agreement with the Landlord, or otherwise provided by law.
(vii)    Failure of Tenant to provide insurance as herein required or failure of Landlord to require evidence of insurance or to notify Tenant of any breach by Tenant of the requirements of this Section 4.4 shall not be deemed to be a waiver of any of the terms of 

this Lease, nor shall they be deemed to be a waiver of the obligation of the Tenant to defend, indemnify, and hold harmless the indemnified parties as required in this Lease. The obligation to procure and maintain any insurance required is a separate responsibility of Tenant and independent of the duty to furnish a copy or certificate of such insurance policies.
ARTICLE FIVE:    USE OF PROPERTY
Section 5.1    Permitted Uses.  Tenant may use the Premises only for the Permitted Uses set forth in Section 1.06 above. Such use by Tenant shall be on a non-exclusive basis with other tenants of the Project entitled to such non-exclusive use.
Section 5.2    Manner of Use/Compliance with Laws.  Tenant shall not cause or permit the Premises to be used in any way which constitutes a violation of any law, ordinance (including but not limited to zoning ordinance), or governmental regulation or order, or which unreasonably interferes with the rights of tenants of the Project, or which constitutes a nuisance or waste. Tenant shall be responsible for ensuring that its use of the Premises is permitted by all applicable zoning and land use regulations and restrictions of record. Tenant shall obtain and pay for all permits, including a Certificate of Occupancy, required for Tenant’s occupancy of the Premises and, subject to the cost of complying being subject to Section 4.1 above and this Section 5. 2 below, shall promptly take all actions necessary to comply with all applicable statutes, ordinances, rules, regulations, easements, covenants, restrictions, orders and requirements regulating Tenant’s operations and the use by Tenant of the Premises, Building or Project, including the Occupational Safety and Health Act. Tenant shall further be responsible to comply with all laws, rules, statutes, regulations or ordinances of any governmental agency or body having jurisdiction, including the ADA (as defined below), as to all Tenant Improvements and subsequent improvements installed or constructed by Tenant and Tenant’s personal property. At its sole cost and expense, Tenant shall, except as otherwise expressly provided in this Lease or in the Work Letter, promptly comply with all such applicable laws and make all alterations to (A) the Premises, which alterations relate to (i) Tenant’s use of the Premises for other than general office purposes or (ii) the Tenant Improvements or other improvements installed by Tenant and located in the Premises or any alterations thereof, and (B) the base Building, but as to the base Building, only to the extent such alterations are triggered by Tenant Improvements, other improvements or alterations made by Tenant to the Premises, or Tenant’s use of the Premises for a non-general office use. Landlord shall comply with all applicable laws relating to the Project and base Building, provided that compliance with such applicable laws is not the responsibility of Tenant under this Lease, would unreasonably and materially affect the safety of Tenant’s parties or create a significant health hazard for Tenant’s parties or otherwise materially adversely interfere with or materially adversely affect Tenant’s Permitted Use and enjoyment of the Premises, or the parking. Landlord shall be permitted to include in Operating Expenses any costs or expenses incurred by Landlord under this Section 5.2 to the extent consistent with, and amortized to the extent required by, the provisions of this Lease.
Section 5.3    Waste, Nuisance, Etc.  Tenant shall not commit or permit any waste on the Premises or in any manner deface or injure the Premises, the Building, or the Project, and shall not use the Premises for the production or distribution of pornographic materials or other 

unlawful purposes, or commit or permit on the Premises or any part of the Project any offensive, noisy or dangerous activity or other nuisance or other activity or thing which may disturb the quiet enjoyment or peaceable possession of any other tenant in the Project. Tenant shall not overload the floor of the Premises beyond the limit reasonably established by Landlord. Tenant shall not employ any sound emitting device in or about the Premises that is audible outside the Premises, except fire and burglar alarms.
Section 5.4    Trash.  Tenant shall place all refuse or trash in receptacles provided by Landlord in the Common Areas.
Section 5.5    Signs, Exterior, Etc. Tenant may, at Tenant’s sole cost and expense, install maximum signage on the Building (including a sign on the Building roof visible from above the Building) and the Building monument sign in a manner consistent with the Landlord reasonably approved building standards and subject to approval by all governing authorities. If Tenant exercises the Lease Termination Right as to only a portion of the Premises or an Option to Extend as to only a portion of the Premises, Tenant’s signage rights shall be reduced proportionately but Tenant shall be entitled to Tenant’s Pro-Rata Share of allowed Building signage and roof signage; provided, however, so long as Tenant leases at least one (1) full floor of the Building, Tenant shall have first pick of the side for Tenant’s Building-top signage (which shall be exclusive for such side) and Tenant shall be entitled to the top slot on the Building monument sign. Tenant’s signage shall be in compliance with Landlord’s existing sign criteria at the Premises and all applicable easements, covenants, conditions and restrictions and applicable laws, statues and ordinances. Tenant shall be responsible for the payment of any review fee imposed by the owner’s association for such approval and said fee shall be submitted by Tenant directly to the owner’s association concurrently with any signage approval request. Tenant shall not place any additional signs on the exterior of the Premises without Landlord’s prior written consent, which consent shall not be unreasonably withheld or delayed. Tenant shall not display or exhibit any products, goods, wares or merchandise and shall not distribute advertising materials within the Project. Tenant shall not erect or place on or about the exterior of the Building wherein the Premises are located or the Project, or on any windows, glass partitions or doors thereof, any signs or other written information unless approved in writing by Landlord. Tenant shall not conduct or permit any auctions or sheriff’s sales at the Premises. In the event the Building is occupied by multiple Tenants, Landlord shall provide and maintain in the lobby of the main entrance level of the Building a directory listing all tenants in the Building. The directory shall list each tenant’s name and its location in the Building designated by floor or by such designation as the Landlord may deem reasonably appropriate. Tenant shall not store products, containers or merchandise outside of the Premises or inside of the Premises which are visible from the Common Areas. In addition to installation of a sign and subject to Landlord’s reasonable approval as to the sign and location of such equipment, Tenant shall the right to utilize a portion of the roof for installation of additional heat and air conditioning units, a vent, antennas and/or satellite dishes. Any and all roof penetrations shall be performed by the contractor that provides Landlord with its roof warranty as long as such contractor is competitively priced, and the cost associated therewith shall be paid by Tenant. Tenant shall be solely responsible to fully obtain all consents and to comply with all obligations under any roof warranty as to the installation, maintenance, repair and removal of such equipment, shall utilize 

such contractors as required under the roof warranty as long as such contractor is reasonably priced, and shall be solely responsible, at its sole cost and expense, to fix any damage, leaks or wear and tear on the roof relative to the same. Any such roof penetration or alteration by Tenant shall be done in a manner which will not interfere with the maintenance of the Building by Landlord in an attractive, first class and fully operative condition, shall not void the roof warranty, and shall be installed in such manner that shall not damage the structure of the Building. Failure to comply with this Section 5.05 shall be a material breach of the Lease.
Section 5.6    Rules and Regulations.  Tenant, its employees, agents, contractors, customers and invitees, shall comply with the Rules and Regulations of the Project attached to the Lease as Exhibit C and made a part hereof by reference, and with such modifications thereto as Landlord, in its reasonable discretion, may hereafter make for the Project; provided, however, that such Rules and Regulations shall not contradict or abrogate any right or privilege herein expressly granted to Tenant or the Permitted Uses. Tenant agrees to faithfully observe and comply with the Rules and Regulations and all modifications thereto from time to time in effect, and any violation of such Rules and Regulations by Tenant, its employees, agents, contractors, customers or invitees shall constitute a breach of this Lease, subject to applicable notice and cure periods. Landlord shall not be responsible to Tenant for the non-performance by any other tenant or occupant of the Project of the Rules and Regulations or any modifications thereof; provided, however, that Landlord shall use commercially reasonable efforts (but not including the institution of legal proceedings) to enforce such non-performance against the other occupants and tenants of the Project, to the extent such non-performance has a material adverse effect on Tenant’s use of or access to the Premises.
Section 5.7    Hazardous Materials.  As used in this Lease, the term “Hazardous  Material” means any flammable items, explosives, radioactive materials, hazardous or toxic substances, material or waste or related materials, including any substance defined as or included in the definition of “hazardous substances”, “hazardous wastes”, “hazardous materials” or “toxic substances” now or subsequently regulated under any applicable federal, state or local laws or regulations, including without limitation petroleum-based products, paints, solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonia compounds and other chemical products, asbestos, PCBs and similar compounds, and including any different products and materials which are subsequently found to have adverse effects on the environment or the health and safety of persons. Tenant shall not cause or permit any Hazardous Material to be generated, produced, brought upon, used, stored, treated or disposed of in or about the Premises by Tenant, its agents, employees, contractors, sublessees or invitees without the prior written consent of Landlord; provided, however, Tenant shall be allowed to store and use nominal amounts of commercially available cleaning and standard office products without the consent of Landlord. For other than such products, Tenant shall provide Landlord with ten (10) days advance written notice, setting forth an itemization of all such Hazardous Materials, with a detailed description thereof, and the intended volume, location and use of such Materials at the Premises, prior to the use or allowance of any other products, materials or substances which are Hazardous Materials as defined above or which have or may have adverse effects on the environment or the health and safety of persons. Landlord shall be entitled to take into account such other factors or facts as Landlord reasonably deems to be relevant in determining whether to grant or withhold consent to 

Tenant’s proposed activity with respect to Hazardous Material. In no event, however, shall Landlord be required to consent to the installation or use of any storage tanks in or on the Premises. Tenant shall have no obligation to investigate or remediate any Hazardous Materials located in or as part of the base building as of the Commencement Date or in any areas of the Project located outside the Premises that were not placed thereon or therein, or damaged, exacerbated (but only to the extent exacerbated) or disturbed by Tenant or any of Tenant’s agents, contractors, employees, licensees or invitees. Landlord covenants that during the Lease Term, Landlord shall not cause any Hazardous Materials to be introduced in, on or under the Project by Landlord, its agents, employees or contractors in violation of applicable laws in effect at the time of such introduction and Landlord shall comply with all applicable laws with respect to Hazardous Materials in accordance with, and as required by, the terms of this Lease. In addition, Operating Expenses shall not include the cost of remediation of any Hazardous Materials to the extent (A) existing on those portions of the Project owned by Landlord as of the date of execution of this Lease in violation of applicable laws at such time (including asbestos), (B) resulting from asbestos, and/or (C) not caused by Tenant or its agents, contractors, employees, licensees or invitees. For purposes hereof, “costs of remediation” shall mean the costs associated with the investigation, testing, monitoring, containment, removal, remediation, cleanup and/or abatement of any release of any such Hazardous Materials described in the immediately preceding sentence as necessary to comply with any applicable laws. Landlord represents and warrants to Tenant, to the best of Landlord’s knowledge, that the Premises and Project are not in violation of any applicable laws relating to the presence of Hazardous Materials.
Section 5.8    Indemnity.  Tenant shall indemnify Landlord against and hold Landlord harmless from any and all costs, claims or liability (“Claims”) arising from: (a) Tenant’s use of the Premises; (b) the conduct of Tenant’s business in the Premises or anything else done or permitted by Tenant to be done in or about the Premises, including any contamination of the Premises or any other property resulting from the presence or use of Hazardous Material caused or permitted by Tenant; (c) any breach or default in the performance of Tenant’s obligations under this Lease; (d) any misrepresentation or breach of warranty by Tenant under this Lease; or (e) other negligent or willful acts or omissions of Tenant. Tenant shall defend Landlord against any such cost, claim or liability at Tenant’s expense with counsel reasonably acceptable to Landlord. As a material part of the consideration to Landlord, Tenant assumes all risk of damage to property or injury to persons in or about the Premises arising from any cause, and Tenant hereby waives all Claims in respect thereof against Landlord, except for any Claim arising out of Landlord’s or any Landlord parties’ negligence or willful misconduct. As used in this Section, the term “Tenant” shall include Tenant’s employees, agents, contractors, invitees and guests, if applicable. Landlord hereby indemnifies, defends, protects and holds Tenant harmless from any claim to any property to the extent such claim is covered by such insurance (or would have been covered if Landlord had carried the insurance required hereunder), even if resulting from the negligent acts, omissions, or willful misconduct of the Tenant and for a breach of this Lease by Landlord. Notwithstanding anything in this Lease to the contrary, nothing in this Lease shall impose any obligations upon Landlord or Tenant to be responsible or liable for, and each hereby releases the other from all liability for, consequential damages, other than those consequential damages incurred by Landlord in connection with (i) a holdover of the Premises by Tenant after 

the expiration or earlier termination of this Lease, and (ii) any repair, physical construction or improvement work performed by or on behalf of Tenant in the Project.
Section 5.9    Landlord’s Access.  Landlord or its agents may enter the Premises at all reasonable times upon forty-eight (48) hours prior written notice to Tenant (except in the event of emergency) (a) during the last year of the Lease Term to show the Premises to potential buyers, investors, tenants or other parties, (b) to do any other act or to inspect and conduct tests in order to monitor Tenant’s compliance with all applicable environmental laws and all laws governing the presence and use of Hazardous Material, or (c) or for any other purpose Landlord deems reasonably necessary. Landlord may make any such entries without the abatement of Rent, except as otherwise provided in this Lease, and may take such reasonable steps as required to accomplish the stated purposes; provided, however, except for emergencies, any such entry shall be performed in an expeditious manner so as not to unreasonably interfere with Tenant’s use of the Premises. Landlord use commercially reasonable efforts to schedule entries into the Premises with so that Tenant, at Tenant’s option, may provide a representative to accompany Landlord. Landlord agrees to take no photographs of any active work areas in the Premises without Tenant’s prior consent and agrees that any information obtained by any entry into the Premises by Landlord or its employees, agents or contractors shall be kept strictly confidential. Even in an emergency situation, Landlord shall use commercially reasonable efforts to minimize any disruption to Tenant’s business operations. Notwithstanding anything to the contrary set forth herein, Tenant may designate certain areas of the Premises as “Secured Areas” should Tenant require such areas for the purpose of securing certain valuable property or confidential information. In connection with the foregoing, Landlord shall not enter such Secured Areas except in the event of an emergency or in connection with alterations to the premises of another tenant of the Building subject to Landlord’s compliance with the terms of this Section 5.9. Landlord shall not clean any area designated by Tenant as a Secured Area and shall only maintain or repair such secured areas to the extent (i) such repair or maintenance is required in order to maintain and repair the building structure and/or the building systems; (ii) as required by applicable laws, or (iii) in response to specific requests by Tenant and in accordance with a schedule reasonably designated by Tenant, subject to Landlord’s reasonable approval. Landlord may place customary “For Sale” or “For Lease” signs on the Premises, the Building and/or Project, as applicable.
Section 5.10    Quiet Possession.  If Tenant pays the rent and complies with all other terms of this Lease within applicable notice and cure periods, Tenant may occupy and enjoy the Premises for the full Lease Term, subject to the provisions of this Lease.
Section 5.11    Tenant ADA Obligations.  Landlord represents and warrants that upon the Delivery Date the shell Building (including all restrooms existing as of the Effective Date) and the Common Areas existing as of the Effective Date shall comply with the requirements of Title III of the Americans with Disabilities Act of 1990 (42 U.S.C. 12181, et seq., the Provisions Governing Public Accommodations and Services Operated by Private Entities), and all regulations promulgated thereunder and all local or state laws, codes and regulations (the “ADA”) and shall promptly remedy any violation at Landlord’s sole cost and expense. At all times during the term of this Lease, Tenant, at Tenant’s sole cost and expense, shall cause all 

alterations and improvements in the Premises (excluding the Building shell, restrooms and the Common Areas existing as of the Effective Date), but including those improvements installed by Tenant or Landlord as Tenant Improvements or otherwise installed by Tenant as an alteration, addition or improvement to the Premises), and Tenant’s use and occupancy of the Premises, and Tenant’s performance of its obligations under this Lease, to comply with the ADA, and all amendments, revisions or modifications thereto now or hereafter adopted or in effect in connection therewith and to take such actions and make such alterations and improvements as are necessary for such compliance; provided, however, that Tenant shall not make any such alterations or improvements except upon Landlord’s prior written reasonable consent pursuant to the terms and conditions of this Lease. If Tenant fails to diligently take such actions or make such alterations or improvements as are necessary for such compliance, Landlord may, but shall not be obligated to, take such actions and make such alterations and improvements and may recover all of the costs and expenses of such actions, alterations and improvements from Tenant as Additional Rent. Notwithstanding anything in this Lease to the contrary, no act or omission of Landlord, including any approval, consent or acceptance by Landlord or Landlord’s agents, employees or other representatives, shall be deemed an agreement, acknowledgment, warranty or other representation by Landlord that Tenant has complied with the ADA or that any action, alteration or improvement by Tenant complies or will comply with the ADA or constitutes a waiver by Landlord of Tenant’s obligations to comply with the ADA under this Lease or otherwise.
Section 5.12    Use of Common Areas.  Tenant shall have the nonexclusive right (in common with other tenants, if any, to whom Landlord has granted or may grant such rights) to use the Common Areas for the purposes intended, subject to such reasonable non-discriminatory rules and regulations as Landlord may establish from time to time, including but not limited to, charges for violations of such rules and regulations. Tenant shall abide by such rules and regulations and shall use its commercially reasonable effort to cause others who use the Common Areas with Tenant’s express or implied permission to abide by Landlord’s rules and regulations. At any time, Landlord may temporarily close any Common Areas to perform any acts in the Common Areas as, in Landlord’s reasonable judgment, are desirable to improve the Project and such improvements do not unreasonably interfere with Tenant’s access to the Premises or its parking rights. Tenant shall not interfere with the rights of Landlord, other tenants or any other person entitled to use the Common Areas. Tenant shall pay all costs, expenses, fines, penalties or damages that Landlord may incur by reason of Tenant’s failure to comply with the provisions of this Section 5.12 and, at Tenant’s sole cost and expense, Tenant shall indemnify, defend and hold Landlord harmless for, from and against all losses and liabilities arising from such non-compliance, utilizing counsel reasonably satisfactory to Landlord.
Access to certain Common Areas may be temporarily restricted from time to time by Landlord for repair, maintenance, construction, and changes in the Land and Buildings comprising the Project. Such activities and changes are permitted if they do not materially affect Tenant’s use of the Premises or its parking rights. Landlord shall maintain the Common Areas in good order, condition and repair unless such maintenance is assumed by another individual or entity pursuant to any applicable covenants, conditions, restrictions or easements.

In the event Landlord determines that Tenant’s use of the Common Areas is disproportionate to the use by other tenants in the Project, Landlord reserves the right: (i) to charge Tenant extra for said increased usage which charge shall reflect the increased cost of Landlord’s maintenance of the Common Areas due to Tenant’s usage; (ii) to provide separate trash receptacles for Tenant which cost shall be the sole responsibility of Tenant and shall be paid by Tenant as Additional Rent; and/or (iii) to require Tenant to arrange for its own separate trash receptacles and collection at Tenant’s sole cost and expense using a contractor satisfactory to Landlord.
Section 5.13    Intentionally Omitted.
Section 5.14    Specific Provision re: Vehicle Parking.  Tenant shall be entitled to use only the number of vehicle parking spaces in the Project allocated to Tenant in Section 1.10 of the Lease without paying any Additional Rent with respect to the uncovered and unreserved spaces and uncovered reserved spaces. Tenant shall be allowed to use the parking areas serving the Project as Tenant sees fit, including restriping and/or valet, so long as Tenant occupies the entire Building and complies with applicable laws. Tenant acknowledges and agrees that Landlord may assign parking spaces at a later date on a non-discriminatory basis subject to Tenant’s reasonable approval. Tenant’s parking shall not be reserved (except as provided in Section 1.10) and Tenant’s parking shall be limited to vehicles no larger than standard size automobiles or pickup utility vehicles. Notwithstanding the foregoing, in the event Tenant is granted reserved parking pursuant to this Lease, Landlord shall use commercially reasonable efforts to enforce the same, and the costs and expenses associated with such enforcement requested by Tenant shall be included within the Operating Expenses as a direct expense to Tenant (but the cost of any signage or other control mechanisms employed by Landlord to control parking shall be included within Operating Expenses not as a direct expense to Tenant), whether or not Tenant is leasing the entire Building, and such costs and expenses shall be excluded from Controllable Operating Expenses. Landlord shall be entitled to grant reserved parking spaces to other tenants of the Project in its reasonable non-discriminatory discretion, provided Tenant continues to have access to the required number of parking spaces as provided in Section 1.10 above and any reserved spaces are equitably allocated throughout the Project. Tenant shall not cause or allow any large trucks or other large vehicles to be parked within the Project other than for unloading purposes. Temporary parking of large delivery vehicles in the Project may be permitted by the rules and regulations reasonably established by Landlord. Vehicles shall be parked only in striped parking spaces and not in driveways, loading areas or other locations not specifically designated for parking. Handicapped spaces shall only be used by those legally permitted to use them. Tenant shall not permit any equipment, structure or other object to be placed in any areas designated for vehicle parking or the Common Areas. In the event Landlord does permit any equipment, structure or other object in any areas designated for vehicle parking, any parking spaces used by Tenant for such purposes shall correspondingly reduce the total number of parking spaces allotted Tenant pursuant to this Lease. If Tenant parks more vehicles in the parking area than the number set forth in Section 1.10 of this Lease and Tenant does not lease the entire Building, such conduct shall be a material breach of this Lease if Tenant fails to rectify such matter within five (5) business days following written notice from Landlord of such conduct, or provided more than two (2) such notices have been given within 

any consecutive twelve (12) month period, in addition to Landlord’s other remedies under the Lease, Tenant shall pay a daily charge equal to $2.50 for each such additional vehicle.
Section 5.15    Exterior Improvements.  Tenant shall not be permitted to make any improvements outside of Tenant’s Premises unless approved by Landlord in its reasonable discretion. Any such improvements approved by Landlord shall be at Tenant’s sole cost and expense or subject to the Tenant Allowance provided for in the Work Letter attached hereto. In the event the improvements by Tenant reduce the parking available at the Building, the parking spaces allocated to Tenant in Section 1.10 shall be reduced accordingly.
ARTICLE SIX:    ARTICLE SIX: CONDITION OF PREMISES; MAINTENANCE, REPAIRS AND ALTERATIONS
Section 6.1    Tenant’s Acknowledgement; Landlord’s Warranties.  Tenant acknowledges, represents, warrants and agrees to the following, except as otherwise provided herein: (i) Tenant shall be responsible for making its own inspection and investigation of the Premises, the Building wherein the Premises are located, and the Project, (ii) Tenant shall be responsible for investigating and establishing the suitability of the Premises for Tenant’s intended use thereof, and all zoning and regulatory matters pertinent thereto, and (iii) Tenant is leasing the Premises “AS IS” based on its own inspection, inquiry and investigation regarding the condition of the Premises, Building and Project and not in reliance on any statement, representation, inducement or agreement of Landlord or any Broker except as expressly set forth herein. Except as otherwise provided herein, by taking possession of the Premises, Tenant shall be deemed to have accepted the Premises as being in satisfactory condition and completed in accordance with any requirements of Landlord set forth herein, exclusive of latent defects not reasonably discoverable by inspection prior to the Effective Date. Except as otherwise provided herein, Tenant accepts the Premises in its condition as of the Effective Date of the Lease, other than latent defects, subject to all recorded matters, laws, ordinances, and governmental regulations and orders of which Landlord has provided Tenant written notice. Except as provided herein, Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation as to the condition of the Premises or the suitability of the Premises for Tenant’s intended use. Landlord hereby represents and warrants that upon the Delivery Date the shell Building, restrooms and Common Areas shall comply with all applicable building codes then in effect and, to the best of Landlord’s knowledge, the Premises and Project is not in violation of any federal, state or local law, ordinance or regulation relating to Hazardous Materials. Tenant shall notify Landlord within one hundred eighty (180) days following the Delivery Date of any violation of the foregoing warranty whereupon Landlord shall, as its sole cost and expense, correct such deficiency. Notwithstanding anything to the contrary contained in this Lease, if Tenant exercises the Partial Premises Termination Right, Landlord agrees to be responsible, at its sole cost and expense, for the cost to improve the corridor common area (i.e., flooring, ceiling, lighting, etc.) but the cost of the demising wall construction and required tenant exit door(s) shall be a Tenant expense, subject to reimbursement from the Tenant Allowance. In addition, in the event Tenant exercises the Partial Premises Termination Right, at Tenant’s request, Landlord agrees to create new entry/exit doors to the west area of the Building directly into the Partial Premises, and Tenant agrees to reimburse (which can be paid out of the Tenant Allowance) 

Landlord for such costs and expenses up to $100,000.00 (which work shall include the doors, sidewalk and concrete entries, new building overhang, lighting, relocations of plumbing and sprinklers, etc.). In the event Tenant elects to have Landlord create new entry/exit doors to the west area of the Building directly into the Partial Premises, the corridor common area at the south entrance to the Building shall be for the exclusive use of Tenant, its employees and visitors.
Section 6.2    Exemption of Landlord from Liability.  Landlord shall not be liable for any damage or injury to the person, business (or any loss of income therefrom), goods, wares, merchandise or other property of Tenant, Tenant’s employees, invitees, customers or any other person in or about the Premises, whether such damage or injury is caused by or results from: (a) fire, steam, electricity, water, gas or rain; (b) the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures or any other cause; (c) conditions arising in or about the Premises or upon other portions of the Project wherein the Premises is located, or from other sources or places; or (d) any act or omission of any other tenant of the Project wherein the Premises is located. Landlord shall not be liable for any such damage or injury even though the cause of or the means of repairing such damage or injury are not accessible to Tenant. The provisions of this Section 6.2 shall not, however, exempt Landlord from liability for Landlord’s negligence or willful misconduct.
Section 6.3    Landlord’s Obligations.
(a)    Except as provided in Article Seven (Damage or Destruction) and Article Eight (Condemnation) and unless such maintenance or repairs are required because of any negligent or intentional act or omission of Tenant or its agents, employees, contractors, customers or invitees, Landlord shall keep the following in good order, condition and repair, reasonable wear and tear excluded: the foundations, slabs, elevators, stairs, restrooms existing as of the Effective Date, exterior walls and roof of the Premises (including painting the exterior surface of the exterior walls of the Premises not more often than once every five (5) years, if necessary); the heating and air conditioning systems servicing the Premises (“HVAC System”) to the extent not covered by the preventive maintenance contract to be maintained by Tenant in Section 6.4(b) below; parking lot surfaces; and all components of electrical, mechanical, sprinkler, fire life safety and plumbing and other building systems and equipment not constructed by Tenant and improvements located outside the interior of the Premises. However, Landlord shall not be obligated to maintain or repair interior windows, doors, plate glass, the interior surfaces of exterior walls or other interior improvements in the Building or Premises, or to provide janitorial services to the Premises or interior Common Areas during the time period that Tenant is leasing the entire Building (and, if the Building is multi-tenant, at Tenant’s request, Landlord shall provide janitorial services as part of Operating Expenses for Common Areas during such time as Tenant is not leasing the entire Building). Landlord shall make repairs under this Section 6.3 within a reasonable time after receipt of written notice from Tenant of the need for such repairs. Notwithstanding any of the terms and conditions set forth in this Lease to the contrary, if Tenant provides notice (or oral notice in the event of an “emergency,” as that term is defined, below) to Landlord of an event or circumstance which requires the action of Landlord with respect to repair and/or maintenance required on any floor of the Building containing space 

leased by Tenant, including repairs to the Building structure and/or Building system located on such floors (and including the Building structure or Building systems not located on floor(s) of the Building leased by Tenant but which service any portion of the Premises), which event or circumstance with respect to the Building structure or Building system materially or adversely affects the conduct of Tenant’s business from the Premises, and Landlord fails to commence corrective action within a reasonable period of time, given the circumstances, after the receipt of such notice, but in any event not later than thirty (30) days after receipt of such notice, then Tenant may proceed to take the required action upon delivery of an additional ten (10) business days’ notice to Landlord specifying that Tenant is taking such required action (provided, however, that the initial thirty (30) day notice and the subsequent ten (10) day notice shall not be required in the event of an emergency) and if such action was required under this Lease to be taken by Landlord and was not commenced by Landlord within such ten (10) business day period and thereafter diligently pursued to completion, then Tenant shall be entitled to take such action and receive prompt reimbursement by Landlord of Tenant’s reasonable costs and expenses in taking such action plus interest thereon at the Interest Rate. In the event Tenant takes such action, Tenant shall use only those contractors used by Landlord in the Building for work unless such contractors are unwilling or unable to perform, or timely perform, such work, in which event Tenant may utilize the services of any other qualified contractor which normally and regularly performs similar work in Comparable Buildings. Promptly following completion of any work taken by Tenant pursuant to the terms and conditions of this Section 6.3(a), Tenant shall deliver a detailed invoice of the work completed, the materials used and the costs relating thereto. If Landlord does not deliver a detailed written objection to Tenant within thirty (30) days after receipt of an invoice from Tenant, then Tenant shall be entitled to deduct from Rent payable by Tenant under this Lease, the amount set forth in such invoice. If, however, Landlord delivers to Tenant, within thirty (30) days after receipt of Tenant’s invoice, a written objection to the payment of such invoice, setting forth with reasonable particularity Landlord’s reasons for its claim that such action did not have to be taken by Landlord pursuant to the terms and conditions of this Lease or that the charges are excessive (in which case Landlord shall pay the amount it contends would not have been excessive), then Tenant shall not then be entitled to such deduction from Rent. If Landlord objects to any deduction from Rent, Tenant may proceed to claim a default by Landlord and file an applicable action. If Tenant prevails in the action, the amount of the judgement (which shall include interest at the Interest Rate from the time of each expenditure by Tenant until the date Tenant receives such amount by payment or offset and attorneys’ fees and related costs) may be deducted by Tenant from the Rent next due and owing under this Lease. For purposes of this Section 6.3(a), an “emergency” shall mean an event threatening immediate and material danger to people located in the Building or immediate, material damage to the Building, Building systems, Building structure, tenant improvements, or alterations, or creates a realistic possibility of an immediate and material interference with, or immediate and material interruption of a material aspect of Tenant’s business operations.
(b)    Tenant shall pay or reimburse Landlord for all costs Landlord incurs under Section 6.3(a) above (excluding costs to correct latent or patent defects in the initial construction of the shell Building or Common Areas which shall be paid by Landlord, at its sole cost and expense) as Operating Expenses to the extent set forth in Section 4.2 of the Lease. Except as otherwise set forth herein, in no event shall Tenant be entitled to undertake any such 

maintenance or repairs, whether at the expense of Tenant or Landlord, and Tenant hereby waives the benefit of any statute or law in effect now or in the future which might give Tenant the right to make repairs at Landlord’s expense or to terminate this Lease due to Landlord’s failure to keep the Premises in good order, condition and repair.
Section 6.4    Tenant’s Obligations.
(a)    Except as provided in Section 6.3, Article Seven (Damage or Destruction) and Article Eight (Condemnation), Tenant shall keep all interior non-structural portions of the Premises, including interior structural elements included as part of the Tenant Improvements and all other improvements and alterations made by Tenant to the Premises, and all alterations, additions or improvements to the Premises by Tenant and any special systems installed in the Building by Tenant or at Tenant’s request, in good order, condition and repair (including janitorial, interior repainting and refinishing, as needed and regular cleaning of interior glass). If any portion of the Premises or any system or equipment in the Premises which Tenant is obligated to repair cannot be fully repaired or restored, Tenant shall promptly replace such portion of the Premises or system or equipment in the Premises, regardless of whether the benefit of such replacement extends beyond the Lease Term; but if the benefit or useful life of such replacement extends beyond the Lease Term (as such term may be extended by exercise of any options), Landlord shall pay for the same and the useful life of such replacement shall be prorated over the remaining portion of the Lease Term (as extended), and Tenant shall be liable only for that portion of the cost which is applicable to the Lease Term (as extended). Subject to Section 4.4(h)(v), if any part of the Premises, Building or the Project is damaged by any act or omission of Tenant, its agents, employees, contractors, customers or invitees, Tenant shall pay Landlord the cost of repairing or replacing such damaged property, whether or not Landlord would otherwise be obligated to pay the cost of maintaining or repairing such property. It is the intention of Landlord and Tenant that at all times Tenant shall maintain the portions of the Premises which Tenant is obligated to maintain in an attractive, first-class and fully operative condition.
(b)    So long as Tenant leases the entire Building, Tenant shall maintain a preventive maintenance contract providing for the regular inspection and maintenance of the HVAC System by a licensed heating and air conditioning contractor, and shall provide Landlord with a copy of said contract within ten (10) days of the Commencement Date and thereafter within ten (10) business days of Landlord’s written request. At such time as Tenant leases less than the entire Building, Tenant’s obligation to maintain the preventive maintenance contract shall apply to only the portion of the HVAC system servicing such Premises.
(c)    The amps of electric capacity provided at the Premises shall be pursuant to existing capacity, such service to be made available at the electrical riser room in the Building wherein the Premises is located, and Landlord shall provide any necessary maintenance or replacement thereof when required. Tenant shall be responsible to obtain electrical service from the power provider of its choice, and, except as otherwise provided herein, Landlord shall not be responsible for interruptions in such service. Tenant shall be responsible for and provide distribution of the power and electrical service from the electrical riser room in the Building to 

the areas required for use thereof by Tenant, and Tenant shall be responsible for all repairs, maintenance and replacement of such electrical service and related equipment from the electrical riser room in the Building during the Lease Term. Subject to Section 4.1, the foregoing responsibilities of Tenant shall include payment for the cost and expense of installation and any repairs, replacements, or upgrades, of such power and electrical service from said electrical riser room to the remainder of the building used or occupied by Tenant and all costs related to installing and causing service to commence, including payment of any security deposits required by any utility company serving the Premises and tap, meter and similar fees related to such services.
(d)    Tenant shall fulfill all of Tenant’s obligations under this Section 6.04 at Tenant’s sole expense, except as otherwise provided herein. If Tenant fails to maintain, repair or replace the Premises as required by this Section 6.04, Landlord may, upon thirty (30) days prior notice to Tenant (except that no notice shall be required in the case of an emergency), perform such maintenance or repair (including replacement, as needed) on behalf of Tenant. In such case, Tenant shall reimburse Landlord for all reasonable costs incurred in performing such maintenance or repair within thirty (30) days of demand.
(e)    Prior to installing any specialized flooring, Tenant shall, at Tenant’s sole cost and expense, make such tests and investigation as recommended by the manufacturer of such flooring prior to execution of this Lease, to determine and satisfy Tenant as to the condition of the floor of the Premises for installation of such specialized flooring or the condition of any flooring existing at the Premises. If Tenant installs any specialized flooring, such flooring shall be installed in accordance with all specifications and recommendations of the manufacturer of such flooring and all costs associated therewith shall be deducted from the Tenant Allowance (as defined in the Work Letter). Tenant hereby waives and relinquishes any claims against or liability of Landlord as to such specialized flooring, or any damages or losses occurring by reason of any defect in, or inadequacy of, such specialized flooring, including, without limitation, any right or claim against Landlord for repair, maintenance or replacement thereof during the Lease Term.
Section 6.5    Alterations, Additions, and Improvements.
(a)    Tenant shall not make any alterations, additions or improvements to the Premises without Landlord’s prior written consent, which consent shall not be unreasonably withheld and shall be granted or denied within ten (10) business days, except for non-structural alterations, additions or improvements and which are not visible from the outside of the Building of which the Premises is part. Landlord may require Tenant to provide demolition and/or lien and completion bonds in form and amount reasonably satisfactory to Landlord and consistent with landlords of Comparable Buildings. Tenant shall promptly remove any alterations, additions, or improvements constructed in violation of this Section 6.5(a) upon Landlord’s written request. All alterations, additions, and improvements shall be done in a good and workmanlike manner, in accordance with plans, specifications and drawings reasonably approved in writing by Landlord, and in conformity with all applicable rules, laws and regulations, and by a licensed contractor reasonably approved by Landlord which consent shall 

not be unreasonably withheld or conditioned by Landlord unless a Design Problem exists and shall be granted or denied within ten (10) business days. A “Design Problem” is defined as, and will be deemed to exist if such alteration will (i) adversely affect the exterior appearance of the Building; (ii) adversely affect the Building structure; (iii) adversely affect the Building systems in a non-de minimus manner; (iv) unreasonably interfere with any other occupant’s normal and customary office operation or rights under their lease(s); or (v) fail to comply with applicable laws; provided, however, notwithstanding that the following improvements might otherwise constitute a Design Problem (rolling file rooms, file rooms, libraries, interconnecting stairs and UPS unit(s)), Landlord shall not unreasonably withhold its consent to such improvements or alterations. Upon completion of any such work, Tenant shall provide Landlord with “as built” plans, copies of all construction contracts, a certificate of completion by the architect who supervised the construction and proof of payment for all labor and materials including appropriate lien releases. Except for Landlord’s negligence or willful misconduct, Landlord shall have no responsibility or liability for any death or injury to persons, including but not limited to Tenant, Tenant’s officers, directors, members, employees, personnel, contractors, invitees and/or any third persons in or upon the real property of Landlord, or for damage to property caused by alterations, additions or improvements made to the Premises by Tenant, whether or not made pursuant to Landlord’s prior written consent as required herein, and Tenant hereby indemnifies Landlord against any such liability, obligation, cost or expense arising therefrom.
(b)    Tenant shall pay when due all claims for labor and material furnished to the Premises. Tenant shall give Landlord at least ten (10) business days prior written notice of the commencement of any work on the Premises, regardless of whether Landlord’s consent to such work is required. Landlord may elect to record and post notices of non-responsibility on the Premises. Tenant shall keep the Premises, the Building and the Project free and clear of any liens arising out of any work performed, materials furnished, or obligations incurred by or on behalf of Tenant. If any such lien is filed against the Premises, the Building or the Project, Tenant shall, within ten (10) business days thereafter, cause the lien to be fully discharged by either paying the obligation secured thereby or obtaining and recording a payment bond in accordance with the provisions of Section 33-1004, Arizona Revised Statutes. Tenant shall indemnify and hold Landlord harmless from any claims for lien waivers. Tenant is not authorized to act for on behalf of Landlord as its agent, or otherwise, for the purpose of constructing any improvements to the Premises, and neither Landlord nor Landlord’s interest in the Premises shall be subject to any obligations incurred by Tenant. Landlord shall be entitled to post on the Premises during the course of any construction by Tenant such notices of non-responsibility as Landlord deems appropriate for the protection of Landlord and its interest in the Premises. If Tenant fails to fully discharge any such lien within a 10-business day period, Landlord may (but shall not be so obligated) pay the claim secured by such lien, and the amount so paid, together with any costs and reasonable attorneys’ fees incurred in connection therewith, shall be immediately due and owing from Tenant to Landlord, and Tenant shall pay the same to Landlord with interest at the rate provided in Section 4.01(c) from the dates of Landlord’s payments. Should any claims of lien be filed against the Premises or any action affecting the title to such property be commenced, the party receiving notice of such lien or action shall forthwith give the other party written notice thereof.

(c)    Unless Landlord requires the removal thereof upon the termination of this Lease at the time Landlord consents thereto and only to the extent causing a Design Problem, Tenant shall not be required to restore any of the Tenant Improvements, or any subsequent alterations, additions or improvements to the Premises by Tenant if approved by Landlord in writing (except movable furniture, equipment and trade fixtures), and such items shall become a part of the Premises and the property of Landlord immediately upon installation thereof. Any alteration, addition or improvement which Tenant is required or permitted to remove hereunder, together with any movable furniture, equipment and trade fixtures, shall be removed at Tenant’s expense upon the termination of this Lease, and Tenant shall promptly repair any damage to the Premises caused by such removal. In no event, however, shall Tenant remove any of the following materials or equipment (which shall be deemed Landlord’s property) without Landlord’s prior written consent: any power wiring or power panels; lighting or lighting fixtures; wall coverings; drapes, blinds or other window coverings; carpets or other floor coverings; heaters, air conditioners or any other heating or air conditioning equipment; fencing or security gates; or other similar building operating equipment and decorations.
Section 6.6    Condition upon Termination or Expiration.  Upon the termination or expiration of the Lease, Tenant shall surrender the Premises and all alterations, additions and improvements to Landlord, broom clean and in the same condition as received except for ordinary wear and tear which Tenant was not otherwise obligated to remedy, repair or replace under any provision of this Lease; provided, however, Tenant shall be responsible for and obligated to, at the cost of Tenant, remedy any bubbling, blistering, leakage and separation occurring with respect to any flooring and any sealcoating so as to deliver and surrender the Premises upon termination of the Lease to Landlord in good repair and condition. However, Tenant shall not be obligated to repair any damage which Landlord is required to repair under Article Seven (Damage or Destruction). In addition, Landlord may require Tenant to remove any non-customary alterations, additions or improvements (whether or not made with Landlord’s consent but excluding any Tenant Improvements made pursuant to the Work Letter) which create a Design Problem prior to the expiration of the Lease and to restore the Premises to its prior condition, all at Tenant’s expense; provided, however, Landlord notifies Tenant of the requirement to remove such non-customary alterations, additions and improvements which create a Design Problem at the time of Landlord’s consent to such alterations, additions and improvements. Notwithstanding anything to the contrary contained herein, Tenant shall have no obligation to remove any of the initial Tenant Improvements, inclusive of cabling, at the end of the Lease Term.
Section 6.7    Services.  Subject to the Rules and Regulations attached to this Lease, Landlord agrees to furnish to the Premises elevator service suitable for the intended use of the Premises. Tenant shall be responsible for providing for its own janitorial services unless the Building is multi-tenant and Tenant requests that the Landlord provide the same. If Tenant is not the sole occupant of the Building, Landlord may provide a security guard at the Project and may provide different security systems from time to time for the Building and/or Project in its reasonable discretion, provided that the cost of such systems does not exceed that of security systems in similar buildings in the vicinity of the Premises. Landlord, from time to time and in Landlord’s reasonable discretion, may alter, remove, replace or discontinue the security services 

provided at the Project in a manner consistent with Comparable Buildings, but Tenant shall have the right to maintain a manned security guard at Tenant’s expense for Tenant’s benefit at any time desired by Tenant.
Section 6.8    Prohibitions.  Tenant will not, without the written consent of Landlord, (i) use any apparatus or device in the Premises which will increase the amount of electricity, water or other utilities otherwise furnished or supplied for use of the Premises as general office space above Tenant’s Pro-Rata Share of the Building capacity; (ii) install any 220 volt outlets in the Premises, except those to be initially installed, if any, pursuant to the plans and specifications referred to in Exhibit B attached hereto or any later approved alterations; nor (iii) connect into the electric current or the water supply except through then existing electrical outlets or existing water taps in the Premises. If Tenant shall require water, electric current or other utilities in excess of that which would otherwise be furnished or supplied for use of the Premises, Tenant shall first procure the written consent of Landlord (which shall not be unreasonably withheld) to the use thereof, and if Tenant is not the sole occupant of the Building, Landlord may cause a water meter, electric meter or other utility measuring device to be installed in the Premises for the purpose of measuring the amount of water, electric current or other utilities consumed for any such purpose. The cost of any such meters and the installation, maintenance and repair thereof shall be paid for by Tenant and Tenant agrees to pay Landlord within thirty (30) days of demand for the cost of all water, electric current or other utilities consumed as shown by said meters, at the rates charged for such services by the suppliers thereof. In the event separate meters cannot be installed, Landlord shall have the right to reasonably estimate the additional cost of the utilities utilized by Tenant and charge the same directly to Tenant, who agrees to promptly pay the same.
ARTICLE SEVEN:    DAMAGE OR DESTRUCTION 
Section 7.1    Partial Damage to Property.
(a)    Tenant shall notify Landlord in writing immediately upon the occurrence of any damage to the Premises. If the Premises is only partially damaged (meaning, less than fifty percent (50%) of the Premises is untenantable as a result of such damage or less than fifty percent (50%) of Tenant’s operations are materially impaired) and if the proceeds received by Landlord from the insurance policies described in Section 4.4 are sufficient to pay for the necessary repairs, this Lease shall remain in effect and Landlord shall repair the damage as soon as reasonably possible. Landlord may elect (but is not required) in its Section 7.1(b) notice to repair any damage to Tenant’s fixtures, equipment, or improvements.
(b)    If the insurance proceeds received by Landlord are not sufficient to pay the entire cost of repair, or if the cause of the damage is not covered by the insurance policies which Landlord maintains under Section 4.04, Landlord may elect either to (i) repair the damage as soon as reasonably possible, in which case this Lease shall remain in full force and effect, or (ii) terminate this Lease as of the date the damage occurred. Landlord shall notify Tenant within thirty (30) days after receipt of notice of the occurrence of the damage whether Landlord elects to repair the damage or terminate the Lease. If Landlord elects to repair the damage, Tenant shall pay Landlord the “deductible amount” (if any) under Landlord’s insurance 

policies. If Landlord elects to terminate the Lease, Tenant may elect to continue this Lease in full force and effect, in which case Tenant shall repair any damage to the Premises to the condition that existed prior to such damage. Tenant shall pay the cost of such repairs, except that upon satisfactory completion of such repairs, Landlord shall deliver to Tenant any insurance proceeds received by Landlord for the damage repaired by Tenant. Tenant shall give Landlord written notice of such election within ten (10) business days after receiving Landlord’s termination notice.
(c)    If the damage to the Premises occurs during the last six (6) months of the Lease Term and such damage will require more than thirty (30) days to repair, either Landlord or Tenant may elect to terminate this Lease as of the date the damage occurred, regardless of the sufficiency of any insurance proceeds. The party electing to terminate this Lease shall give written notification to the other party of such election within thirty (30) days after Tenant’s notice to Landlord of the occurrence of the damage.
(d)    Notwithstanding anything to the contrary contained herein, if Landlord does not elect to terminate this Lease pursuant to Landlord’s termination right as provided above, and the repairs cannot, in the reasonable opinion of a licensed architect or contractor reasonably selected by Landlord, be completed within two hundred seventy (270) days after the damage or destruction is discovered (which period shall be subject to extension for up to sixty (60) days as a result of an event of force majeure), Tenant may, within thirty (30) days following Landlord’s election to rebuild and/or restore the Premises, Building and/or Project, elect to terminate this Lease by written notice to Landlord effective as of the date specified in the notice, which date shall not be less than thirty (30) days nor more than ninety (90) days after the date such notice is given by Tenant. Furthermore, if neither Landlord nor Tenant has terminated this Lease, and the repairs are not actually completed within three hundred (300) days following the date of discovery of the damage, Tenant shall have the right to terminate this Lease during the first five (5) business days of each calendar month following the end of such period until such time as the repairs are complete, by notice to Landlord (the “Damage Termination Notice”), effective as of a date set forth in the Damage Termination Notice (the “Damage Termination Date”), which Damage Termination Date shall not be less than ten (10) business days nor more than ninety (90) days following the end of each such month. At any time, from time to time, after the date occurring sixty (60) days after the date the damage is discovered, Tenant may request that Landlord provide Tenant with a certificate from the architect or contractor described above setting forth such architect’s or contractor’s reasonable opinion of the date of completion of the repairs and Landlord shall respond to such request within five (5) business days.
Section 7.2    Substantial or Total Destruction.  If the Premises is substantially or totally destroyed by any cause whatsoever (meaning, the damage to the Premises is greater than partial damage as described in Section 7.01), and regardless of whether Landlord receives any insurance proceeds, this Lease shall terminate as of the date the destruction occurred. Notwithstanding the preceding sentence, if the Premises can be rebuilt within six (6) months after the date of destruction, Landlord may elect to rebuild the Premises at Landlord’s own expense, in which case this Lease shall remain in full force and effect. Landlord shall notify Tenant of such election within thirty (30) days after Tenant’s notice of the occurrence of total or 

substantial destruction. If Landlord so elects, Landlord shall rebuild the Premises at Landlord’s sole expense.
Section 7.3    Temporary Reduction of Rent.  If the Premises is destroyed or damaged and Landlord or Tenant repairs or restores the Premises pursuant to the provisions of this Article Seven, any rent payable during the period of such damage, repair and/or restoration (including the time for Tenant to restore any tenant improvements, but such time shall be the actual time taken by Tenant to restore any tenant improvements using reasonable due diligence not exceed an additional 180 days after Landlord completes its restoration) shall be reduced according to the degree, if any, to which Tenant’s use of the Premises is impaired. Except for such possible reduction in Base Rent, Additional Rent, insurance premiums and Real Estate Taxes, Tenant shall not be entitled to any compensation, reduction, or reimbursement from Landlord as a result of any damage, destruction, repair, or restoration of or to the Premises.
Section 7.4    Waiver.  Tenant waives the protection of any statute, code or judicial decision which grants a tenant the right to terminate a lease in the event of the substantial or total destruction of the leased property, including the provisions of Arizona Revised Statutes Section 33¬343. Tenant agrees that the provisions of  Section 7.2 above shall govern the rights and obligations of Landlord and Tenant in the event of any substantial or total destruction to the Premises.
ARTICLE EIGHT:    CONDEMNATION
If all or any portion of the Premises or Project is taken under the power of eminent domain or sold under the threat of that power (all of which are called “Condemnation”), this Lease shall terminate as to the part taken or sold on the date the condemning authority takes title or possession, whichever occurs first. If more than twenty percent (20%) of the floor area of the Premises or more than ten percent (10%) of Tenant’s parking is taken by Condemnation, then either party hereto shall be entitled to terminate this Lease as of the date the condemning authority takes title or possession, by delivering written notice to the other party within ten (10) business days after receipt of written notice of such taking (or in the absence of such notice, within ten (10) business days after the condemning authority takes title or possession). If more than twenty-five percent (25%) of the floor area of the Building and/or more than twenty-five percent (25%) of the land area of the entire Project is taken by Condemnation, then Landlord shall be entitled to terminate this Lease as of the date of the date the condemning authority takes title or possession, by delivering written notice to Tenant within ten (10) days after receipt of written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority takes title or possession). If neither Landlord nor Tenant terminates this Lease, this Lease shall remain in effect as to the portion of the Premises not taken, except that the Base Rent shall be reduced in proportion to the reduction in the rentable square footage of the Premises, and Additional Rent shall be reduced in proportion to the reduction in Tenant’s Pro-Rata Share of the total Rental Square Footage available at the Project. Any Condemnation award or payment shall be distributed in the following order: (a) first, to any ground lessor, mortgagee or beneficiary under a deed of trust encumbering the Premises, the amount of its interest in the Premises; (b) second, to Tenant, only the amount of any award specifically designated for loss of 

or damage to Tenant’s trade fixtures or removable personal property; and (c) third, to Landlord, the remainder of such award, whether as compensation for reduction in the value of the leasehold, the taking of the fee, or otherwise. If this Lease is not terminated, Landlord shall repair any damage to the Premises caused by the Condemnation, except that Landlord shall not be obligated to repair any damage for which Tenant has been reimbursed by the condemning authority. If the severance damages received by Landlord are not sufficient to pay for such repair, Landlord shall have the right to either terminate this Lease or make such repair at Landlord’s expense.
ARTICLE NINE:    ARTICLE NINE: ASSIGNMENT AND SUBLETTING
Section 9.1    Landlord’s Consent Required.  No portion of the Premises or of Tenant’s interest in this Lease may be acquired by any other person or entity, whether by sale, assignment, license, mortgage, sublease, transfer, operation of law, or act of Tenant, without Landlord’s prior written consent, except as provided in Section 9.2 below. Landlord has the right to grant or withhold its consent as provided in Section 9.5 below. Any attempted transfer without consent shall be void and shall constitute a non-curable breach of this Lease. Except as provided in Section 9.2, if Tenant is a partnership or limited liability company, any cumulative transfer of more than fifty percent (50%) of the interests shall require Landlord’s consent. Except in connection with a transaction described in Subsections (a) or (b) of Section 9.2 or a public offering of Tenant’s stock, if Tenant is a corporation, any change in the ownership of more than fifty percent (50%) of the voting stock of the corporation shall require Landlord’s consent.
Section 9.2    Tenant Affiliate.  Notwithstanding the foregoing, Tenant may assign this Lease or sublease all or any portion of the Premises, without Landlord’s consent, to (a) any entity resulting from a merger, reorganization or consolidation with Tenant; (b) any entity succeeding to all or substantially all of the stock, interests or assets and business of Tenant; and (c) any corporation which controls, is controlled by or is under common control with Tenant (each entity listed in subsections (a), (b) and (c) are hereinafter referred to as a, “Tenant’s Affiliate”); provided, however, in the case of an assignment of the Lease, Tenant’s Affiliate has a net worth equal to or greater than Tenant (Tenant’s net worth being calculated immediately prior to the assignment) and provides reasonable evidence of such net worth within five (5) days after such assignment along with copies of all documents relating to such assignment or sublease. In the event Tenant’s Affiliate does not have a greater net worth than Tenant, such assignment or sublease is subject to Landlord’s prior consent, as provided herein. In such case, any Tenant’s Affiliate shall assume in writing all of Tenant’s obligations under this Lease prior to the date of such assignment and shall provide Landlord a copy of such assumption within five (5) days after execution. Further, Tenant shall be entitled to sublease individual offices and workstations within the Premises without Landlord’s consent so long as such office and workstations are not separately demised and do not exceed, in total, 15,000 RSF of the Premises.
Section 9.3    No Release of Tenant.  No transfer permitted by this Article Nine, whether with or without Landlord’s consent, shall release Tenant or change Tenant’s primary liability to pay the Rent and to perform all other obligations of Tenant under this Lease. Landlord’s acceptance of Rent from any other person is not a waiver of any provision of this 

Article Nine. Consent to one transfer is not a consent to any subsequent transfer. If Tenant’s transferee defaults under this Lease, Landlord may proceed directly against Tenant without pursuing remedies against the transferee. Landlord may consent to subsequent assignments or modifications of this Lease by Tenant’s transferee, without notifying Tenant or obtaining its consent. Such action shall not relieve Tenant’s liability under this Lease.
Section 9.4    Offer to Terminate.  If Tenant desires to assign the Lease or sublease the Premises, Tenant shall have the right, but not the obligation, to offer, in writing, to terminate the Lease as of a date specified in the offer. If Landlord elects in writing to accept the offer to terminate within twenty (20) days after notice of the offer, the Lease shall terminate as of the date specified and all the terms and provisions of the Lease governing termination shall apply. If Landlord does not so elect, the Lease shall continue in effect until otherwise terminated and the provision of Section 9.05 with respect to any proposed transfer shall continue to apply.
Section 9.5    Landlord’s Consent.
(a)    Tenant’s request for consent to any transfer described in Section 9.01 shall set forth in writing the details of the proposed transfer, including the name, business and financial condition of the prospective transferee, financial details of the proposed transfer (e.g., the term of and the rent and security deposit payable under any proposed assignment or sublease), and any other information Landlord reasonably deems relevant. Landlord shall have the right to withhold consent, if reasonable, or to grant consent, based on the following factors: (i) the business of the proposed assignee or subtenant and the proposed use of the Premises being consistent with the nature of the Building and tenants of Comparable Buildings; (ii) the net worth and financial reputation of the proposed assignee or subtenant has to be sufficient in light of the obligations under such transfer; and (iii) Tenant’s compliance with all of its obligations under the Lease within applicable notice and cure periods. Landlord shall respond to Tenant’s request for consent to transfer within ten (10) days following Landlord’s receipt of all required information. If Landlord fails to timely respond, Tenant shall provide Landlord with written notice of Landlord’s failure whereupon Landlord shall have any additional five (5) days to respond. If Landlord fails to respond with such 5 additional day period, Landlord shall be deemed to have approved the transfer.
(b)    If Tenant assigns or subleases, the following shall apply:
(i)    Immediately following any approved assignment or sublease, Tenant shall deliver to Landlord an assumption agreement reasonably acceptable to Landlord executed by Tenant and the transferee, together with a certificate of insurance evidencing the transferee’s compliance with the insurance requirements of Tenant under this Lease. Tenant agrees to reimburse Landlord for reasonable administrative and attorneys’ fees in connection with the processing and documentation of any transfer for which Landlord’s consent is requested not to exceed $1,500 in the aggregate.
(ii)    Except upon assignment to a Tenant’s Affiliate, Tenant shall pay to Landlord as Additional Rent under the Lease the Landlord’s Share (stated in Section 1.14) of the Profit (defined below) on such transaction as and when received by Tenant. The 

“Profit” means (A) all amounts paid to Tenant for such assignment or sublease, including “key” money, monthly rent in excess of the monthly rent payable under the Lease, and all fees and other consideration paid for the assignment or sublease, including fees under any collateral agreements, less (B) costs and expenses directly incurred by Tenant in connection with the execution and performance of such assignment or sublease for free rent, real estate broker’s commissions, landlord’s fee, attorneys’ fees and costs, economic concessions granted, advertising and marketing costs, unamortized improvement costs and costs of renovation or construction of tenant improvements (or allowance granted) required under such assignment or sublease. Tenant is entitled to recover such costs and expenses before Tenant is obligated to pay the Landlord’s Share to Landlord. The Profit in the case of a sublease of less than all the Premises is the rent allocable to the subleased space as a percentage on a square footage basis.
(iii)    Tenant shall provide Landlord a written statement certifying all amounts to be paid from any assignment or sublease of the Premises within thirty (30) days after the transaction documentation is signed, and Landlord may inspect Tenant’s books and records to verify the accuracy of such statement. On written request, Tenant shall promptly furnish to Landlord copies of all the transaction documentation, all of which shall be certified by Tenant to be complete, true and correct. Landlord’s receipt of Landlord’s Share shall not be a consent to any further assignment or subletting. The breach of Tenant’s obligation under this Section 9.05(b) shall be a material default of the Lease.
Section 9.6    No Merger.  No merger shall result from Tenant’s sublease of the Premises under this Article Nine, Tenant’s surrender of this Lease or the termination of this Lease in any other manner. In any such event, Landlord may terminate any or all subtenancies or succeed to the interest of Tenant as sublandlord under any or all subtenancies.
ARTICLE TEN:    DEFAULTS; REMEDIES
Section 10.1    Covenants and Conditions.  Tenant’s performance of each of Tenant’s obligations under this Lease is a condition as well as a covenant. Tenant’s right to continue in possession of the Premises is conditioned upon such performance within applicable notice and cure periods. Time is of the essence in the performance of all covenants and conditions.
Section 10.2    Defaults.  Tenant shall be in material default under this Lease:
(a)    If Tenant fails to pay Rent or any other charge within five (5) business days after notice that such amount is past due;
(b)    If Tenant fails to perform any of Tenant’s non-monetary obligations under this Lease for a period of thirty (30) days after written notice from Landlord; provided that if more than thirty (30) days are required to complete such performance, Tenant shall not be in default if Tenant commences such performance within the thirty (30) day period and thereafter diligently pursues its completion. However, Landlord shall not be required to give such notice if Tenant’s failure to perform constitutes a non-curable breach of this Lease. The notice required by this Section 10.02(c) is intended to satisfy any and all notice requirements imposed by law on Landlord and is not in addition to any such requirement.

(c)    (i) if Tenant makes a general assignment or general arrangement for the benefit of creditors; (ii) if a petition for adjudication of bankruptcy or for reorganization or rearrangement is filed by or against Tenant and is not dismissed within thirty (30) days; (iii) if a trustee or receiver is appointed to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in n this Lease and possession is not restored to Tenant within thirty (30) days; or (iv) if substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease is subjected to attachment, execution or other judicial seizure which is not discharged within thirty (30) days. If a court of competent jurisdiction determines that any of the acts described in this subparagraph (d) are not a default under this Lease, and a trustee is appointed to take possession (or if Tenant remains a debtor in possession) and such trustee or Tenant transfers Tenant’s interest hereunder, then Landlord shall receive, as Additional Rent, the excess, if any, of the rent (or any other consideration) paid in connection with such assignment or sublease over the rent payable by Tenant under this Lease.
Section 10.3    Remedies.  On the occurrence of any material default by Tenant after applicable notice and cure period, Landlord may, at any time thereafter, with or without any additional notice or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have:
(a)    Terminate Tenant’s right to possession of the Premises by any lawful means, in which case Tenant shall immediately surrender possession of the Premises to Landlord. In such event, Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant’s default, including (i) the unpaid Base Rent, Additional Rent and other charges and interest due at the time of termination; (ii) the amount by which unpaid Base Rent, Additional Rent and other charges and interest due after termination until the time of the award exceeds the amount of such rental loss that Tenant proves Landlord could have reasonably avoided; (iii) the worth at the time of the award of the amount by which the unpaid Base Rent, Additional Rent and other charges which Tenant would have paid from the time of the award through the balance of the Lease Term exceeds the amount of such rental loss that Tenant proves Landlord could have reasonably avoided; (iv) intentionally deleted; (v) continuing interest on the amounts set forth in subparagraphs (i), (ii) and (iii) above at the Interest Rate; and (vi) any other amount reasonably necessary to compensate Landlord for all the 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, any costs or expenses Landlord incurs in maintaining or preserving the Premises after such default, the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation or alteration of the Premises, Landlord’s reasonable attorneys’ fees incurred in connection therewith, and any real estate commission paid or payable. As used in subpart (iii) above, the “worth at the time of the award” is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus one percent (1%). If Tenant has abandoned the Premises, Landlord shall have the option of (i) retaking possession of the Premises and recovering from Tenant the amount specified in this Section 10.3(a), or (ii) proceeding under Section 10.3(b);

(b)    Maintain Tenant’s right to possession, in which case this Lease shall continue in effect whether or not Tenant has abandoned the Premises. In such event, Landlord shall be entitled to enforce all of Landlord’s rights and remedies under this Lease, including the right to recover the rent as it becomes due;
(c)    Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the state in which the Premises is located. No remedy herein conferred upon Landlord shall be considered exclusive of any other remedy, and the same shall be cumulative and shall be in addition to every other remedy given hereunder, or now or hereafter existing at law or in equity or by statute, including, but not limited to, the right to maintain an action to recover all amounts due hereunder. Landlord may exercise its rights and remedies at any time, in any order, to any extent, and as often as Landlord deems advisable. No delay or omission of Landlord to exercise any right or power arising from any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein. No waiver of a default shall be effective unless it is in writing.
Section 10.4    Intentionally Deleted.
Section 10.5    No Acceptance of Surrender.  No act or conduct of Landlord, whether consisting of the acceptance of the keys to the Premises, or otherwise, shall be deemed to be or constitute an acceptance by Landlord of the surrender of the Premises by Tenant prior to the expiration of the Term hereof, and such acceptance by Landlord of surrender by Tenant shall only flow from, and must be evidenced by, written acknowledgement of acceptance of surrender signed by Landlord.
Section 10.6    Termination.  Notwithstanding any other term or provision hereof to the contrary, the Lease shall only terminate upon the occurrence of an act by Landlord which affirms the Landlord’s intent to terminate the Lease. On such termination, Landlord’s damages for default shall include all costs and fees, including reasonable attorneys’ fees that Landlord incurs in connection with the filing, commencement, pursuing and/or defending of any action in any bankruptcy court or other court with respect to the Lease; the obtaining of relief from any stay in bankruptcy restraining any action to evict Tenant; or the pursuing of any action with respect to Landlord’s right to possession of the Premises. All such damages suffered (apart from Base Rent, Additional Rent and other charges payable hereunder) shall constitute pecuniary damages which must be reimbursed to Landlord prior to assumption of the Lease by Tenant or any successor to Tenant in any bankruptcy or other proceeding.
Section 10.7    No Accord and Satisfaction.  No payment by Tenant or receipt by Landlord of a lesser amount than the rent or other sum provided to be paid shall be deemed to be other than on account of the earliest rent or any other sum due and payable under this Lease, nor shall any endorsement or statement or any check or any letter accompanying any check or payment as rent or other sum due and payable be deemed an accord and satisfaction, unless expressly agreed to, in writing, by Landlord. Landlord may accept any such check or payment without prejudice to Landlord’s right to recover the balance of such rents or pursue any other remedy provided in this Lease.

ARTICLE ELEVEN:    PROTECTION OF LENDERS
Section 11.1    Subordination. Subject to Tenant’s receipt of a commercially reasonable SNDA, This Lease and Tenant’s interest in the Premises shall be subject and subordinate to all ground and underlying leases and all mortgages, deeds of trusts or other security agreements (each, a “Security Instrument”) which now or hereafter affect the Premises and to any and all advancements to be made thereunder and to all renewals, modifications, consolidations, replacements, and extensions thereof, whenever made or recorded. Notwithstanding the foregoing, Landlord shall obtain, (a) within sixty (60) days after the mutual execution and delivery of this Lease with respect to any existing Security Instrument and (b) within sixty (60) days following the date of any new Security Instrument, a commercially reasonable subordination, non-disturbance and attornment agreement (“SNDA”). The form of SNDA attached hereto as Exhibit F and the provisions thereof are hereby deemed acceptable to Landlord and Tenant. If Landlord fails to obtain an SNDA in accordance with the immediately preceding sentence, Tenant may terminate this Lease upon notice to Landlord prior to receiving the SNDA. Tenant shall reasonably cooperate with Landlord and any lender which is acquiring a security interest in the Premises or the Lease. Tenant shall execute such further commercially reasonable documents and assurances as such lender may require, provided that Tenant’s obligations under this Lease shall not be increased in any material way (the performance of ministerial acts shall not be deemed material), and Tenant shall not be deprived of its rights under this Lease. Tenant’s right to quiet possession of the Premises during the Lease Term shall not be disturbed if Tenant pays the rent and performs all of Tenant’s obligations under this Lease and is not otherwise in default beyond applicable notice and cure periods. If any ground lessor, beneficiary or mortgagee elects to have this Lease superior to the lien of its ground lease, deed of trust or mortgage and gives written notice thereof to Tenant, subject to Tenant’s receipt of a SNDA, this Lease shall be deemed superior to such ground lease, or mortgage whether this Lease is dated prior or subsequent to the date of said ground lease, deed of trust or mortgage or the date of recording thereof.
Section 11.2    Attornment.  If Landlord’s interest in the Premises is acquired by any ground lessor, beneficiary under a deed of trust, mortgagee, or purchaser at a foreclosure sale, subject to Tenant’s receipt of a SNDA, Tenant shall attorn to the transferee of or successor to Landlord’s interest in the Premises and recognize such transferee or successor as Landlord under this Lease. Tenant waives the protection of any statute or rule of law which gives or purports to give Tenant any right to terminate this Lease or surrender possession of the Premises upon the transfer of Landlord’s interest.
Section 11.3    Signing of Documents. Within ten (10) business days after written request, Tenant shall sign and deliver any commercially reasonable instrument or documents necessary or appropriate to evidence any such attornment or subordination or agreement to do so.
Section 11.4    Estoppel Certificates.
(a)    Upon Landlord’s written request, Tenant shall execute, acknowledge and deliver to Landlord a written statement certifying: (i) that none of the terms or provisions of this Lease have been changed (or if they have been changed, stating how they have 

been changed); (ii) that this Lease has not been cancelled or terminated; (iii) the last date of payment of the Base Rent and other charges and the time period covered by such payment; (iv) to Tenant’s actual knowledge, that Landlord is not in default under this Lease (or, if Landlord is claimed to be in default, stating why); and (v) such other representations or information with respect to Tenant or the Lease as Landlord may reasonably request or which any prospective purchaser or encumbrancer of the Premises may require. Tenant shall execute and deliver such statement to Landlord within ten (10) business days after Landlord’s request. Landlord may give any such statement by Tenant to any prospective purchaser or encumbrancer of the Premises. Such purchaser or encumbrancer may rely conclusively upon such statement as true and correct.
(b)    If Tenant does not deliver such statement to Landlord within such ten (10) business day period, Landlord, and any prospective purchaser or encumbrancer, may conclusively presume and rely upon the following facts: (i) that the terms and provisions of this Lease have not been changed except as otherwise represented by Landlord; (ii) that this Lease has not been cancelled or terminated except as otherwise represented by Landlord; (iii) that not more than one month’s Base Rent or other charges have been paid in advance; and (iv) that Landlord is not in default under the Lease. In such event, Tenant shall be estopped from denying the truth of such facts.
(c)    Section 11.5 Tenant’s Financial Condition. Within ten (10) business days after written request from Landlord in connection with a sale or refinance and only twice in any twelve (12) month time period, Tenant shall deliver to Landlord such financial statements (not in excess of two (2) years) as Landlord reasonably requires as are prepared in the ordinary course of business from Tenant or any assignee, subtenant, or guarantor of Tenant. In addition, Tenant shall deliver to any lender designated by Landlord any financial statements (not in excess of two (2) years) as are prepared in the ordinary course of business reasonably required by such lender to facilitate the financing or refinancing of the Premises. Notwithstanding anything to the contrary contained herein, as a condition precedent to Tenant’s delivery, Landlord or the Landlord Party requesting such information shall execute a commercially reasonable form of confidentiality agreement with respect thereto. Such statements shall be as prepared in Tenant’s ordinary course of business and certified as true and correct by Tenant’s chief financial officer. Tenant represents and warrants to Landlord that each such financial statement is a true and accurate statement as of the date of such statement. All financial statements shall be confidential and shall be used only for the purposes set forth in this Lease.
ARTICLE TWELVE:    LEGAL COSTS
Section 12.1    Legal Proceedings.  If Tenant or Landlord shall be in breach or default under this Lease, such party (the “Defaulting Party”) shall reimburse the other party (the “Nondefaulting Party”) upon demand for any costs or expenses that the Nondefaulting Party incurs in connection with any breach or default of the Defaulting Party under this Lease, whether or not suit is commenced or judgment entered. Such costs shall include reasonable legal fees and costs incurred for the negotiation of a settlement, enforcement of rights or otherwise. Furthermore, if any action for breach of or to enforce the provisions of this Lease is commenced, the court in such action shall award to the party in whose favor a judgment is entered, a 

reasonable sum as attorneys’ fees and costs. The losing party in such action shall pay such attorneys’ fees and costs. Except as excluded in Section 5.08 above, Tenant shall also indemnify Landlord against and hold Landlord harmless from all Claims Landlord may incur if Landlord becomes or is made a party to any claim or action (a) instituted by Tenant against any third party, or by any third party against Tenant, or by or against any person holding any interest under or using the Premises by license of or agreement with Tenant; (b) for foreclosure of any lien for labor or material furnished to or for Tenant or such other person; or (c) necessary to protect Landlord’s interest under this Lease in a bankruptcy proceeding, or other proceeding under Title 11 of the United States Code, as amended. Tenant shall defend Landlord against any such claim or action at Tenant’s expense with counsel reasonably acceptable to Landlord.
ARTICLE THIRTEEN:    MISCELLANEOUS PROVISIONS
Section 13.1    Non-Discrimination.  Tenant promises, and it is a condition to the continuance of this Lease, that there will be no discrimination against, or segregation of, any person or group of persons on the basis of race, color, sex, creed, national origin or ancestry in the leasing, subleasing, transferring, occupancy, tenure or use of the Premises or any portion thereof.
Section 13.2    Landlord’s Liability; Certain Duties.  
(a)    As used in this Lease, the term “Landlord” means only the current owner or owners of the fee title to the Premises or Project or the leasehold estate under a ground lease of the Premises or Project at the time in question. Each Landlord is obligated to perform the obligations of Landlord under this Lease only during the time such Landlord owns such interest or title. Any Landlord who transfers its title or interest is relieved of all liability with respect to the obligations of Landlord under this Lease to be performed on or after the date of transfer, so long as assumed by the transferee. However, each Landlord shall deliver to its transferee all funds and the Letter of Credit that Tenant previously paid if such funds have not yet been applied under the terms of this Lease.
(b)    Tenant shall give written notice of any failure by Landlord to perform any of its obligations under this Lease to Landlord and to any ground lessor, mortgagee or beneficiary under any deed of trust encumbering the Premises whose name and address have been furnished to Tenant in writing. Landlord shall not be in default under this Lease unless Landlord (or such ground lessor, mortgagee or beneficiary) fails to cure such non-performance within thirty (30) days (except in the event of emergency) after receipt of Tenant’s notice to Landlord specifying the nature of such default. However, if such non-performance reasonably requires more than thirty (30) days to cure, Landlord shall not be in default if such cure is commenced within such thirty (30) day period and thereafter diligently pursued to completion. In the event of a default by Landlord under the Lease, Tenant shall use reasonable efforts to mitigate its damages and losses arising from any such default.
(c)    In the event that Tenant is prevented from using, and does not use, the Premises or any portion thereof, as a result of (i) any repair, maintenance or alteration performed by Landlord (including repairs, maintenance and alterations required or permitted by 

Landlord hereunder), or which Landlord failed to perform, after the Commencement Date and required by this Lease, which substantially interferes with Tenant’s use of or ingress to or egress from the Building, Project, Premises, or the parking; (ii) any failure to provide services, utilities or ingress to and egress from the Building, Project, Premises, or the parking as required by this Lease; or (iii) the presence of Hazardous Materials (not brought on the Premises by Tenant or Tenant Parties) in violation of applicable laws which poses a material health risk to the environment or the Premises (any such set of circumstances as set forth in items (i) through (iii), above, to be known as an “Abatement Event”), then Tenant shall give Landlord notice of such Abatement Event, and if such Abatement Event continues for seven (7) consecutive business days after Landlord’s receipt of any such notice, or occurs for twenty (20) non-consecutive business days in a twelve (12) month period (in either of such events, the “Eligibility Period”), then the Base Rent and Tenant’s Pro-Rata Share of Operating Expenses and Tenant’s parking charges 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 (“Unusable Area”), bears to the total rentable area of the Premises; provided, however, in the event that Tenant is prevented from using, and does not use, the Unusable Area 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 Base Rent and Tenant’s Pro-Rata Share of Operating Expenses and Tenant’s parking charges for the entire Premises shall be abated for such time as Tenant continues to be so prevented from using, and does not use, the Premises. If, however, Tenant reoccupies 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 Tenant reoccupies such portion of the Premises. Such right to abate Base Rent, Tenant’s Pro-Rata Share of Operating Expenses and Tenant’s parking charges shall be Tenant’s sole and exclusive remedy at law or in equity for an Abatement Event. If Tenant’s right to abatement occurs because of an eminent domain taking, condemnation and/or because of damage or destruction to the Premises, the parking, and/or the Project, Tenant’s abatement period shall continue until Tenant has been given sufficient time, and sufficient ingress to, and egress from the Premises, to rebuild such portion it is required to rebuild, to install its property, furniture, fixtures, and equipment to the extent the same shall have been removed as a result of such damage or destruction or temporary taking and to move in over a weekend. To the extent Tenant is entitled to abatement because of an event covered by Articles 7 or 8 of this Lease, then the Eligibility Period shall not be applicable. In the event the Eligibility Period occurs during the Base Rent abatement period, the Eligibility Period shall be extended on a day for day basis for any overlap period.
(d)    Notwithstanding any term or provision herein to the contrary, the liability of Landlord for the performance of its duties and obligations under this Lease is limited to Landlord’s interest in the Premises and the Project and shall not include any consequential, 

speculative or punitive damages of any kind or nature, and neither the Landlord nor its partners, shareholders, officers or other principals shall have any personal liability under this Lease.
Section 13.3    Severability.  A determination by a court of competent jurisdiction that any provision of this Lease or any part thereof is illegal or unenforceable shall not cancel or invalidate the remainder of such provision or this Lease, which shall remain in full force and effect.
Section 13.4    Interpretation.  The captions of the Articles or Sections of this Lease are to assist the parties in reading this Lease and are not a part of the terms or provisions of this Lease. Whenever required by the context of this Lease, the singular shall include the plural and the plural shall include the singular. The masculine, feminine and neuter genders shall each include each of the others. In any provision relating to the conduct, acts or omissions of Tenant, the term “Tenant” shall include Tenant’s agents, employees, contractors, invitees, successors or others using the Premises with Tenant’s expressed or implied permission. This Lease is the result of negotiations between Landlord and Tenant, and therefore the language contained in this Lease shall be construed as a whole according to its fair meaning and not strictly for or against either Landlord or Tenant.
Section 13.5    Incorporation of Prior Agreements; Modifications.  This Lease is the only agreement between the parties pertaining to the lease of the Premises and no other agreements are effective. All amendments to this Lease shall be in writing and signed by all parties. Any other attempted amendment shall be void. All prior and contemporaneous agreements, representations and understandings of the parties, oral or written, pertaining to the subject matter hereof, are hereby superseded and merged herein.
Section 13.6    Notices.  All notices required or permitted under this Lease or otherwise given between Landlord and Tenant shall be in writing and shall be personally delivered or sent by certified mail, return receipt requested, postage prepaid or nationally recognized overnight delivery service. Notices to Tenant shall be delivered to the address specified in Section 1.03 above. Notices to Landlord shall be delivered to the address specified in Section 1.02 above, with a copy to Landlord’s counsel, Dean J. Formanek, at Warner Angle Hallam Jackson & Formanek PLC, 2555 East Camelback Road, Suite 800, Phoenix, Arizona, 85016. All notices shall be deemed effective upon delivery or forty-eight (48) hours after deposit in the mail as hereinabove provided. Except as provided above for notice to Tenant at the Premises, either party may change its notice address upon written notice to the other party.
Section 13.7    Waivers.  All waivers must be in writing and signed by the waiving party. Landlord’s failure to enforce any provision of this Lease or its acceptance of rent shall not be a waiver and shall not prevent Landlord from enforcing that provision or any other provision of this Lease in the future. No statement on a payment check from Tenant or in a letter accompanying a payment check shall be binding on Landlord. Landlord may, with or without notice to Tenant, negotiate such check without being bound to the conditions of such statement.
Section 13.8    No Recordation.  Tenant shall not record this Lease without prior written consent from Landlord. However, either Landlord or Tenant may require that a “Short Form” 

memorandum of this Lease executed by both parties be recorded. The party requiring such recording shall pay all transfer taxes and recording fees.
Section 13.9    Binding Effect; Choice of Law.  This Lease binds any party who legally acquires any rights or interest in this Lease from Landlord or Tenant. However, Landlord shall have no obligation to Tenant’s successor unless the rights or interests of Tenant’s successor are acquired in accordance with the terms of this Lease. The laws of the state in which the Premises is located shall govern this Lease. The exclusive jurisdiction and venue for any action or proceeding brought by either party shall be the Superior Courts of Maricopa County, Arizona.
Section 13.10    Entity Authority.  If Tenant is a corporation, partnership or limited liability company, each person signing this Lease on behalf of Tenant represents and warrants that he has full authority to do so and that this Lease binds the corporation, partnership or limited liability company. If requested by Landlord, Tenant shall deliver to Landlord a certified copy of a resolution of Tenant’s Board of Directors, partners, manager(s) or member(s), as applicable, authorizing the execution of this Lease or other evidence of such authority reasonably acceptable to Landlord.
Section 13.11    Joint and Several Liability.  All parties signing this Lease as Tenant shall be jointly and severally liable for all obligations of Tenant.
Section 13.12    Force Majeure.  Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, acts of war, terrorist acts, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, fire or other casualty, and other causes beyond the reasonable control of the party obligated to perform, except with respect to the obligations imposed upon Tenant with regard to Rent and other charges to be paid by Tenant or Landlord pursuant to this Lease (collectively, a “Force Majeure”), notwithstanding anything to the contrary contained in this Lease, shall excuse the performance of such party for a period equal to any such prevention, delay or stoppage and, therefore, if this Lease specifies a time period for performance of an obligation of either party, that time period shall be extended by the period of any delay in such party’s performance caused by a Force Majeure.
Section 13.13    Execution of Lease.  This Lease may be executed in one or more counterparts, each of which shall be deemed original, and all of which together shall constitute one and the same instrument. Landlord and Tenant agree that facsimile and electronic signatures may be used in place of original signatures on this Lease or any document delivered pursuant hereto. All parties to this Lease intend to be bound by the signatures on the faxed or e-mailed document, are aware that the other party or parties will rely on the faxed or e-mailed signatures, and hereby waive any defenses to the enforcement of the terms of this Lease based on the form of signature.
Section 13.14    Survival.  All representations and warranties of Landlord and Tenant shall survive the termination of this Lease.

Section 13.15    Time is of the Essence.  Time is of the essence for all provisions of this Lease.
Section 13.16    No Third Party Rights/Partnership.  Except as expressly provided herein, no term or provision of this Lease is intended to or shall be for the benefit of any person not a party hereto, and no such other person shall have any right or cause or action hereunder. Nothing contained in this Lease shall create any partnership, joint venture, or other arrangement between Landlord and Tenant.
Section 13.17    OFAC.  Each of Landlord and Tenant, each as to itself, hereby represents its compliance with all applicable anti-money laundering laws, including, without limitation, the USA Patriot Act, and the laws administered by the United States Treasury Department’s Office of Foreign Assets Control, including, without limitation, Executive Order 13224 (“Executive Order”). Each of Landlord and Tenant further represents (i) that it is not, and it is not owned or controlled directly or indirectly by any person or entity, on the SDN List published by the United States Treasury Department’s Office of Foreign Assets Control and (ii) that it is not a person otherwise identified by government or legal authority as a person with whom a U.S. Person is prohibited from transacting business. As of the date hereof, a list of such designations and the text of the Executive Order are published under the internet website address www.ustreas.gov/offices/enforcement/ofac. 
Section 13.18    Good Faith.  Except (i) for matters for which there is a standard of consent or discretion specifically set forth in this Lease; (ii) matters which could have an adverse effect on the Building structure or the Building systems, or which could affect the exterior appearance of the Building, or (iii) matters covered by Section 4.1 (Additional Rent), Section 4.4 (Insurance), or Article 10 (Defaults; Remedies) of this Lease (collectively, the “Excepted Matters”), any time the consent of Landlord or Tenant is required under this Lease, such consent shall not be unreasonably withheld or delayed, and, except with regard to the Excepted Matters, whenever this Lease grants Landlord or Tenant the right to take action, exercise discretion, establish rules and regulations or make an allocation or other determination, Landlord and Tenant shall act reasonably and in good faith.
Section 13.19    Permitted Dogs.  Provided Tenant is leasing the entire Building, Tenant and its employees shall be permitted to bring into the Premises and the Common Areas of the Project fully-domesticated dogs owned by Tenant's employees (“Permitted Dogs”), subject to the terms and conditions of this Section 13.19. If Tenant is not leasing the entire Building, the following breeds will be excluded from the Project: Pit Bulls (aka American Staffordshire Terriers, Staffordshire Bull Terriers, or American Pit Bull Terriers), Bull Terriers, Bull Mastiffs, German Shepherds, Huskies, Malamutes, Doberman Pinscher, Rottweiler, Chow Chows, and any wolf, coyote, or other wild dog breed mix. Landlord shall be entitled to charge Tenant $200.00 for each time there is a violation of the previous sentence on any given day and if there are more than five (5) violations of the previous sentence within a twelve (12) month period, Tenant’s ability to bring dogs into the Premises while they are not leasing the entire Building may, in Landlord’s sole discretion, be terminated. All Permitted Dogs shall be strictly controlled at all times and shall not be permitted to foul, damage or otherwise mar any part of the Premises or the 

Project, or bark excessively or otherwise create a nuisance at the Project. The Permitted Dogs shall be taken off the Project for their walks and shall not be permitted to excrete waste within the Premises, Building or the Common Areas. Tenant shall be responsible for any additional cleaning costs and all other costs which may arise from the presence of the Permitted Dogs in or on the Project in excess of the costs that would have been incurred had the Permitted Dogs not been allowed in or on the Project with such costs and expenses not being included within Controllable Operating Expenses; and Tenant shall immediately remove any waste and excrement of any Permitted Dogs from the Project and properly clean the affected area. Notwithstanding any other limitation set forth in this Lease, Tenant shall be responsible for, and shall indemnify, defend, protect and hold Landlord and the Landlord Parties harmless from any and all Claims arising from, resulting from or connected with the acts or presence of the Permitted Dogs in the Premises or the Project (including, without limitation, bodily injury to persons in the Premises or the Property or property damage to the property of Landlord or any other tenant, subtenant, occupant, licensee or invitee of the Project).
ARTICLE FOURTEEN:    BROKERS
Section 14.1    Broker’s Fee.  When this Lease is signed by and delivered to both Landlord and Tenant, Landlord shall pay a real estate commission to Landlord’s Broker (if any) named in Section 1.07 above, in accordance with the separate agreement between Landlord and such Broker for services rendered to Landlord by Landlord’s Broker in this transaction; provided, however, Landlord shall not be required to pay any commission on the Partial Premises until Tenant fails to timely elect to terminate the Lease as to the Partial Premises or such right is deemed null and void in accordance herewith. If a Tenant’s Broker is named in Section 1.7 above, Landlord’s Broker shall pay an appropriate portion of its commission to Tenant’s Broker if so provided in any agreement between Landlord’s Broker and Tenant’s Broker and Tenant shall have no obligation to pay any commissions. Nothing contained in this Lease shall impose any obligation on (i) Landlord to pay a commission or fee to any party other than Landlord’s Broker or (ii) Landlord’s lender to pay any commissions hereunder.
Section 14.2    Protection of Broker.  If Landlord sells the Premises, or assigns Landlord’s interest in this Lease, the buyer or assignee (excluding Landlord’s lender, if applicable) shall, by accepting such conveyance of the Premises or assignment of the Lease, be conclusively deemed to have agreed to make any commission payments to Landlord’s Broker if required of Landlord under this Article Fourteen, to the extent same has not been previously paid. If Landlord’s Broker shall bring a legal action to enforce or declare rights under this provision, the prevailing party in such action shall be entitled to reasonable attorneys’ fees to be paid by the losing party. Such attorneys’ fees shall be fixed by the court in such action.
Section 14.3    Agency Disclosure; No Other Brokers.  Landlord and Tenant each warrant that they have dealt with no other real estate broker(s) in connection with this transaction except those brokers set forth in Section 1.07. Landlord and Tenant each indemnify the other against any claims arising or occurring by reason of a breach of the foregoing warranty by such party. In the event Landlord’s Broker represents both Landlord and Tenant, Landlord and Tenant hereby confirm that they were timely advised of the dual representation and that they consent to 

the same, and that they do not expect said broker to disclose to either of them the confidential information of the other party. Landlord discloses that David Allred, a principal of Landlord, is a licensed real estate broker in the state of Arizona.
ARTICLE FIFTEEN:    COMPLIANCE
The parties hereto agree to comply with all applicable federal, state and local laws, regulations, codes, ordinances and administrative orders having jurisdiction over the parties, property or the subject matter of this Agreement, including, but not limited to, the 1964 Civil Rights Act and all amendments thereto, the Foreign Investment In Real Property Tax Act, the Comprehensive Environmental Response Compensation and Liability Act, and The Americans With Disabilities Act.
ADDITIONAL PROVISIONS MAY BE SET FORTH IN EXHIBITS ATTACHED HERETO OR IN THE BLANK SPACE BELOW.
[signature page follows]

Landlord and Tenant have signed this Lease at the place and on the dates specified adjacent to their signatures below and have signed or initialed, where applicable, all Exhibits which are attached to or incorporated by reference in this Lease.
									
	“LANDLORD”
			
	DARED 89 LLC, an Arizona limited liability company
			
	By:	Douglas Allred Company, a California Corporation
	Its:	Co-Manager
			
		By:	/s/ Bryan D. Putnam
		Name:	Bryan D. Putnam
		Its: 	Chief Financial Officer
			
	By:	Jammer I LLC, 
an Arizona limited liability company

	Its:	Co-Manager
			
		By:	/s/ Bryan D. Putnam
		Name:	Bryan D. Putnam
		Its:	Chief Financial Officer
			
	“TENANT”
			
	ZipRecruiter, Inc., a Delaware corporation
			
		By:	/s/ David Feldman
		Name:	David Feldman
		Its:	Chief Business Officer
			

IN ANY REAL ESTATE TRANSACTION, IT IS RECOMMENDED THAT YOU CONSULT WITH A PROFESSIONAL, SUCH AS A CIVIL ENGINEER, INDUSTRIAL HYGIENIST OR OTHER PERSON WITH EXPERIENCE IN EVALUATING THE CONDITION OF THE PROPERTY, INCLUDING THE POSSIBLE PRESENCE OF ASBESTOS, HAZARDOUS MATERIALS AND UNDERGROUND STORAGE TANKS.

EXHIBIT A-1
PREMISES AND BUILDING

EXHIBIT A-2
INITIAL PREMISES and PARTIAL PREMISES

EXHIBIT A-3
PROJECT LEGAL DESCRIPTION
LOTS 5 AND 6 AND A PORTION OF LOT 7, OF MARICOPA FREEWAY CENTER UNIT 1 NORTH, A SUBDIVISION RECORDED IN BOOK 129 OF MAPS, PAGE 12, RECORDS OF MARICOPA COUNTY, ARIZONA LOCATED IN THE SOUTHWEST QUARTER OF SECTION 19, TOWNSHIP 1 NORTH, RANGE 4 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, MARICOPA COUNTY, ARIZONA MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE CITY OF PHOENIX BRASS CAP IN HANDHOLE MARKING THE SOUTHWEST QUARTER OF SAID SECTION 19 FROM WHICH A CITY OF PHOENIX BRASS CAP FLUSH MARKING THE WEST QUARTER CORNER OF SAID SECTION 19 BEARS NORTH 00 DEGREES 59 MINUTES 35 SECONDS WEST 2657.05 FEET, SAID DESCRIBED LINE BEING THE BASIS OF BEARING FOR THIS DESCRIPTION;
THENCE NORTH 00 DEGREES 59 MINUTES 35 SECONDS WEST 1608.56 FEET ALONG THE WEST LINE OF SAID SOUTHWEST QUARTER TO THE NORTH LINE OF THE STATE HIGHWAY WARRANTY DEED RECORDED IN BOOK 6535 OF DOCKETS, PAGE 303, RECORDS OF MARICOPA COUNTY, ARIZONA;
THENCE SOUTH 85 DEGREES 21 MINUTES 12 SECONDS EAST 104.44 FEET ALONG SAID NORTH LINE TO THE SOUTHWEST CORNER OF SAID LOT 5;
THENCE NORTH 02 DEGREES 12 MINUTES 31 SECONDS WEST 76.69 FEET ALONG THE WEST LINE OF SAID LOT 5 TO THE NORTH RIGHT OF WAY LINE OF INTERSTATE 10 RECORDED IN DOCUMENT NO. 2012-1179766, RECORDS OF MARICOPA COUNTY, ARIZONA AND THE POINT OF BEGINNING;
THENCE CONTINUING NORTH 02 DEGREES 12 MINUTES 31 SECONDS WEST 541.94 FEET TO THE NORTHWEST CORNER OF SAID LOT 5 AND THE BEGINNING OF A NON-TANGENT CURVE TO THE RIGHT THE CENTER OF WHICH BEARS SOUTH 00 DEGREES 34 MINUTES 42 SECONDS EAST 542.96 FEET;
THENCE EASTERLY ALONG SAID NORTH LINE AND THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 19 DEGREES 26 MINUTES 35 SECONDS, AN ARC LENGTH OF 184.25 FEET;
THENCE SOUTH 71 DEGREES 14 MINUTES 45 SECONDS EAST 99.86 FEET CONTINUING ALONG NORTH LINE OF SAID LOT 5 AND 6 TO THE BEGINNING OF A TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 602.96 FEET;
THENCE EASTERLY ALONG SAID NORTH LINE AND THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 19 DEGREES 37 MINUTES 50 SECONDS, AN ARC LENGTH OF 206.58 FEET TO THE NORTHWEST CORNER OF SAID LOT 7;

THENCE NORTH 89 DEGREES 15 MINUTES 49 SECONDS EAST 135.32 FEET ALONG THE NORTH LINE OF SAID LOT 7;
THENCE SOUTH 04 DEGREES 38 MINUTES 17 SECONDS WEST 289.34 FEET;
THENCE SOUTH 85 DEGREES 21 MINUTES 12 SECONDS EAST 24.04 FEET;
THENCE SOUTH 04 DEGREES 38 MINUTES 48 SECONDS WEST 213.37 FEET TO NORTH RIGHT OF WAY LINE OF SAID INTERSTATE 10;
THENCE NORTH 85 DEGREES 01 MINUTES 21 SECONDS WEST 164.97 FEET ALONG SAID EASEMENT LINE;
THENCE NORTH 82 DEGREES 56 MINUTES 45 SECONDS WEST 99.87 FEET CONTINUING ALONG SAID EASEMENT LINE;
THENCE NORTH 85 DEGREES 05 MINUTES 21 SECONDS WEST 313.98 FEET CONTINUING ALONG SAID EASEMENT LINE TO THE POINT OF BEGINNING;

EXHIBIT B
WORK LETTER AGREEMENT
The undersigned Landlord and Tenant are executing concurrently with this Work Letter Agreement (“Work Letter”), a written Office Lease (the “Lease”) covering those certain premises more particularly described in Section 1.04 of the Lease, (hereinafter referred to as “Premises”). Capitalized terms used but not otherwise defined in this Work Letter shall have the meanings ascribed to them in the Lease.
1.    Representatives.  Landlord appoints Landlord’s Representative to act for Landlord in all matters covered by this Work Letter. Tenant appoints Tenant’s Representative to act for Tenant in all matters covered by this Work Letter. All inquiries, requests, instructions, authorizations and other communications with respect to the matters covered by this Work Letter will be made to Landlord’s Representative or Tenant’s Representative, as the case may be. Tenant will not make any inquiries of or requests to, and will not give any instructions or authorizations to, any other employee or agent of Landlord, including Landlord’s architect, engineers and contractors or any of their agents or employees, with regard to matters covered by this Work Letter. Either party may change its Representative under this Work Letter at any time with three (3) days prior written notice to the other party.
						
	Tenant’s Representative:	Amy Klimek
ZipRecruiter, Inc
604 Arizona Avenue
Santa Monica, California 90401
Phone: (310) 925-2644

		
	With a copy to:	Corey Shepard
2398 E. Camelback Road, Suite 900
Phoenix, Arizona 85016
Phone: (602) 648-7373

		
	Landlord’s Representative:	Ms. Cathy Exeter
11452 El Camino Real, Suite 200
San Diego, California 92130
Phone: (858) 793-0202
Fax: (858) 793-5363

2.    Tenant’s Plans and Specifications.
a.    Tenant agrees, at its sole cost and expense, through a space planner or architect selected by Tenant, and approved by Landlord in Landlord’s reasonable discretion given within five (5) business days (“Space Planner”), to furnish a space plan and specifications, including the space layout and improvement plan for the Premises (“Tenant’s Space Plan”) required for the performance of the work to construct the improvements to the building desired by Tenant (hereinafter referred to as the “Tenant Improvements”). Landlord hereby approves RSP Architects as the Space Planner, if selected by Tenant. Tenant’s Space Plan shall include but not 

be limited to partition layout, reflected ceiling plans, electrical outlets, electrical switches and locations of each thereof. As part of the Tenant Improvements, subject to the Tenant Allowance, Tenant shall construct the demising wall, multi-tenant corridor and vestibule, if necessary, for the Partial Premises to be a separate easily accessible and readily marketable space. Tenant shall cause the Tenant Improvements to be constructed by a contractor (“Contractor”) selected by Tenant and approved by Landlord in Landlord’s reasonable discretion, given within five (5) business days. Landlord hereby approves Willmeng, Wespac, Jokake or Layton as the Contractor, if selected by Tenant. Tenant shall have the right to competitively bid the construction to union or non-union contractors.
b.    The Space Planner shall be responsible for providing to Tenant, with a copy to Landlord, a complete set of construction drawings and documents, including Tenant’s Space Plan, which are permit ready and have completed plan check by the government agency having jurisdiction, for construction of the Tenant Improvements, the quantity and description of materials, equipment and other items required for bidding by the Contractor. The Space Planner shall be responsible for coordination of the architectural, mechanical, electrical and plumbing drawings. Landlord, Tenant and Contractor shall cooperate to the best of their ability to provide all information required for such coordination.
c.    Tenant shall be responsible to pay the Space Planner’s fees for the Tenant’s Space Plan, which Landlord will reimburse Tenant by charging said reimbursement against the Tenant Allowance provided under this Agreement. In addition, upon execution and delivery of this Lease, Landlord agrees to pay Tenant’s Space Planner $0.12 per RSF of the entire Premises (including without limitation, the Partial Premises) for an initial “test fit” space plan, in addition to the Initial Tenant Allowance set forth in Section 10 below.
d.    All work shall be performed, and all materials and equipment shall be supplied by suppliers, by or under the control of the Contractor or other consultants selected by Tenant. Such contractors, subcontractors and suppliers must be reasonably approved by Landlord within five (5) business days prior to performance of any work or furnishing of any materials or equipment. Landlord hereby approves Kraemer Consulting Engineers if selected by Tenant. Landlord shall use its reasonable discretion in approving Tenant’s choice of contractors, subcontractors and suppliers. Any contractor or subcontractor employed by Tenant shall be commercially licensed, bonded and insured in the State of Arizona. Before the commencement of any work by Contractor, Tenant shall provide Landlord with copies of Tenant’s and Contractor’s applicable insurance policies. At a minimum, such policies shall include builder’s all-risk coverage (unless maintained by Tenant), liability for death, personal injury and property damage arising out of the performance of any work at or about the Premises by Contractor, any subcontractor or any other party required to be under the control of Contractor, and shall provide comprehensive automobile liability insurance, shall be primary and non-contributing. Any insurance which Tenant is required to maintain hereunder shall include a provision which requires the insurance carrier to give Landlord not less than thirty (30) days’ written notice prior to any cancellation or modification of such coverage; provided however, if the insurer is unable or unwilling to provide such notice to Landlord, Tenant shall be required to provide notice to Landlord not less than twenty (20) days prior to any cancellation or modification of such coverage. The minimum 

amount of such insurance coverage shall be One Million Dollars ($1,000,000.00) per occurrence for personal injury or property damage and Three Hundred Thousand Dollars ($300,000.00) for automobile liability. Said policies shall each name Landlord and Landlord’s lender(s), if applicable, as additional insured parties and shall each cover any occurrence caused by or occurring because of activities or failure to properly and safely perform the work.
e.    All plans and specifications referred to hereinabove in Sections a, b and c are subject to the Landlord’s approval in its reasonable discretion, unless a Design Problem (as defined in the Lease) exists.
3.    Landlord’s Approval.
Landlord may withhold its approval of any improvements and any Tenant Space Plan, Tenant Working Drawings, Tenant Extra Work or Change Orders which create a Design Problem, but Landlord shall approve or disapprove all within five (5) business days of receipt and within two (2) business days of a resubmittal:
4.    Schedule of Tenant Improvement Activities.
Tenant shall cooperate with and submit to Space Planner the information (the “Tenant Information”) necessary for the Space Planner to prepare the Tenant’s Space Plan for the Premises. Landlord shall approve or reasonably disapprove Tenant’s Space Plan for a Design Problem within five (5) business days of receipt and any revision thereafter within two (2) business days of receipt.
After approval of the Tenant’s Space Plan by Landlord, Tenant will promptly have prepared a preliminary estimate of the cost of the Tenant Improvements (hard and soft cost of Tenant Improvements only) as set forth in the Tenant Space Plan (the “Tenant’s Estimated Construction Cost”). Tenant shall timely (not later than three (3) days after Tenant’s receipt thereof) provide a copy of the Tenant’s Estimated Construction Cost to Landlord. After approval of Tenant’s Estimated Construction Cost, Space Planner will prepare and deliver to Tenant, Landlord and Contractor working drawings for the Premises (“Tenant Working Drawings”). Tenant shall cause Contractor to prepare from the documents a cost proposal (“Tenant Cost Proposal”) for construction of the Tenant Improvements (hard and soft cost of Tenant Improvements only) in accordance with the Tenant Working Drawings, and construction schedule which will set forth estimated time frames for completion of construction of the Tenant Improvements. If the Tenant Cost Proposal is greater than the Tenant Allowance (“Excess Costs”), Tenant will so notify Landlord in writing and Tenant will either:
(i)    acknowledge that Landlord will not be responsible for payment of the Excess Costs and agree in writing to pay the Excess Costs and, in the event the Excess Costs exceed $15 per RSF of the Initial Premises, Tenant shall deposit the Excess Costs that exceed $15 per RSF of the Initial Premises to Landlord to be disbursed following completion of Tenant Improvements and Tenant’s delivery of the documents required by Section 10(e) below, or

(ii)    revise the Tenant Space Plan in order to assure that the Tenant Cost Proposal is either (a) no more than the Tenant Allowance, or (b) in excess of the Tenant Allowance by an amount which Tenant agrees to pay pursuant to clause (i) immediately above.
Following approval of the Tenant Working Drawings and the Tenant Cost Proposal by Tenant, Tenant shall cause Space Planner to make application to the appropriate governmental authorities for necessary approvals and building permits. Landlord acknowledges that the Tenant Working Drawings will be submitted simultaneously to Landlord and the City for review. Upon receipt of the necessary approvals and permits, the Contractor will begin construction. The Contractor may substitute materials of comparable or better quality if the materials specified in Tenant’s Working Drawings are unavailable or not available within the time required for timely completion.
5.    Compliance With Laws.
Tenant, in completing the Tenant Improvements shall, at Tenant’s sole and cost and expense, ensure that Contractor complies with and observes all the requirements of all county, parochial, municipal, state, federal and other applicable governmental authorities (“Applicable Requirements”) now in force, or which may hereafter be in force, pertaining to the Premises, including, but not limited to (i) Industrial hygiene (ii) the American’s With Disabilities Act (ADA) (iii) environmental conditions on, in, under or about the Premises, including soil and groundwater conditions, (iv) OSHA and (v) the use, generation, manufacture, production, installation, maintenance, removal, transportation, storage, spill, or release of any Hazardous Substance, as that term is defined in the Lease.
Tenant shall, within five (5) business days after receipt of Landlord’s written request, provide Landlord with copies of all documents and information, including, but not limited to permits, licenses, registrations, manifests, applications, reports, and certificates evidencing or required for Tenant’s and/or Contractor’s compliance with any Applicable Requirements specified by Landlord and shall immediately, upon receipt, notify Landlord in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving failure by Tenant, Contractor or the Premises to comply with Applicable Requirements.
6.    Change Orders.  Tenant may authorize changes in the work during construction. All such changes will be subject to Landlord’s prior written reasonable approval in accordance with Section 3. Prior to commencing any material change, the Tenant shall prepare and deliver to Landlord, for Landlord’s approval, a change order (the “Change Order”) setting forth the total cost of such change, which will include associated architectural, engineering and construction contractor’s fees. If Tenant’s then current budget is in excess of the applicable Tenant Allowance, Tenant shall pay the amount of the cost for such Change Order before Landlord shall be required to pay any additional Tenant Allowance to Tenant.

7.    Intentionally Omitted.
8.    Construction Of The Premises. Tenant shall cause Contractor to construct the Tenant Improvements within the Premises under a guaranteed maximum price construction contract with the Tenant, reasonably acceptable to Landlord and to cause such construction to proceed reasonably and diligently. Landlord shall not impose any charge of any kind for profit, use of parking or elevator, overhead, and supervision or construction management fee in connection with the construction of the Tenant Improvements. Tenant shall not be responsible for paying any costs of trash removal and utilities including, without limitation, HVAC, electrical power, water, and sewer during construction of the Tenant Improvements. Tenant shall have the right to use portable bathrooms at its discretion. Tenant, at no charge to Tenant, shall have (i) the right use existing Building’s risers and/or install additional risers for Tenant’s cabling, and (ii) unrestricted access to all areas within the Premises and Building, including the Building’s MPO (main point of entry), to install the required infrastructure to service Tenant’s IT and telecommunications requirements.
9.    Intentionally Deleted.
10.    Tenant Improvements At Landlord’s Cost And Expense.
a.    Landlord agrees to provide Tenant an allowance not to exceed Sixty and No/100 Dollars ($60.00) per RSF for the 65,188 RSF of the Initial Premises for a total of Three Million Nine Hundred Eleven Thousand Two Hundred Eighty Dollars ($3,911,280.00) to complete the design and construction of its Tenant Improvements in the Initial Premises (“Initial Tenant Allowance”). In addition to the foregoing, Landlord agrees to provide Tenant, at Tenant’s election, an additional allowance not to exceed Ten and No/100 Dollars ($10.00) per RSF for the 65,188 RSF of the Initial Premises for a total not to exceed Six Hundred Fifty-One Thousand Eight Hundred Eighty Dollars ($651,880.00), to complete the design and construction of its Tenant Improvements in the Initial Premises (the “Additional Tenant Allowance”). The Initial Tenant Allowance and any portion of the Additional Tenant Allowance that Tenant has elected to utilize are hereinafter referred to for purposes of this subsection a. as the “Tenant Allowance.” Tenant shall only be permitted to utilize the Tenant Allowance to construct Tenant Improvements for the Initial Premises (including the demising wall). In the event the Tenant fails to utilize the Additional Tenant Allowance during the time period that construction of the Tenant Improvements occurs, Tenant shall be deemed to forfeit any right to the unused Additional Tenant Allowance. In the event Tenant utilizes all or a portion of the Additional Tenant Allowance, the Additional Tenant Allowance utilized shall be amortized over Ten (10) Years at an interest rate of six percent (6%) per annum and commencing on the ninth (9th) month of the Lease Term said amortized amount shall be paid by Tenant monthly in equal payments at the start of each month simultaneously with the payment of Base Rent (plus applicable rent and privilege taxes thereon). To the extent that Landlord fails to pay Tenant from the Tenant Allowance amounts requested to pay Tenant’s Contractor, architects, engineers and Tenant’s agents in accordance with the terms hereof, and such amounts remain unpaid for thirty (30) days after notice from Tenant, then without limiting Tenant’s other remedies under the Lease, Tenant may, after Landlord’s failure to pay such amounts within five (5) business days 

after Tenant’s delivery of a second notice from Tenant delivered after the expiration of such 30-day period, pay same and deduct the amount thereof from the Rent next due and owning under the Lease, including interest at the Interest Rate from the due date until the date of the Rent offset. Notwithstanding the foregoing, if during either the 30-day or 5-day period set forth above, Landlord (i) delivers notice to Tenant that it disputes any portion of the amounts claimed to be due (the “Allowance Dispute Notice”), and (ii) pays any amounts not in dispute, Tenant shall have no right to offset any amounts against rent, but may institute an action to recover such amounts from Landlord. Notwithstanding of the foregoing, in the event Tenant institutes an action as provided herein and the judgement is in favor of Tenant, Tenant shall be entitled, automatically, to offset the amount of such judgement against the Base Rent next coming due under the Lease, including interest at the Interest Rate from the due date until the date of the Rent offset. Further, in the event the judgement is in favor of Tenant, any delay actually caused to Tenant as a result of Landlord’s failure to pay the disputed amount shall be deemed to be a “Landlord Caused Delay” under Section 5 of this Tenant Work Letter.
b.    Landlord agrees to provide Tenant an allowance not to exceed Sixty and No/100 Dollars ($60.00) per RSF for the 25,411 RSF of the Partial Premises for a total of One Million Five Hundred Twenty-Four Thousand Six Hundred Sixty Dollars ($1,524,660.00) to complete the design and construction of its Tenant Improvements in the Partial Premises (“Partial Premises  Tenant Allowance”), which shall be made available to Tenant only after the Partial Premises Termination Right has expired and has not been exercised by Tenant. In addition to the foregoing, Landlord agrees to provide Tenant, at Tenant’s election, an additional allowance not to exceed Ten and No/100 Dollars ($10.00) per RSF for the 25,411 RSF of the Partial Premises for a total not to exceed Two Hundred Fifty-Four Thousand One Hundred Ten Dollars ($254,110.00), to complete the design and construction of its Tenant Improvements in the Partial Premises (the “Additional Partial Premises Tenant Allowance”), which shall be made available to Tenant only after the Partial Premises Termination Right has expired and has not been exercised by Tenant. Tenant shall notify Landlord of the amount of the Additional Partial Premises Tenant Allowance it will utilize on or before the Partial Premises Termination Date. The Partial Premises Tenant Allowance and any portion of the Additional Partial Premises Tenant Allowance that Tenant has elected to utilize are hereinafter referred to for purposes of this subsection b. as the “Tenant Allowance.” Tenant shall only be permitted to utilize the Tenant Allowance to construct Tenant Improvements for the Premises (including the demising wall). In the event the Tenant fails to utilize the Additional Partial Premises Tenant Allowance during the time period that construction of the Tenant Improvements occurs, Tenant shall be deemed to forfeit any right to the unused Additional Partial Premises Tenant Allowance. In the event Tenant utilizes all or a portion of the Additional Partial Premises Tenant Allowance, the Additional Partial Premises Tenant Allowance utilized shall be amortized over the remaining Lease Term at an interest rate of six percent (6%) per annum and commencing on the month of the Lease Term following completion of the Tenant Improvements for the Partial Premises, but in all events no later than thirty (30) months after the Effective Date, with said amortized amount to be paid by Tenant monthly in equal payments at the start of each month simultaneously with the payment of Base Rent (plus applicable rent and privilege taxes thereon). To the extent that Landlord fails to pay Tenant from the Tenant Allowance amounts requested to pay Tenant’s Contractor, architects, engineers and Tenant’s agents in accordance with the terms hereof, and such amounts 

remain unpaid for thirty (30) days after notice from Tenant, then without limiting Tenant’s other remedies under the Lease, Tenant may, after Landlord’s failure to pay such amounts within five (5) business days after Tenant’s delivery of a second notice from Tenant delivered after the expiration of such 30-day period, pay same and deduct the amount thereof from the Rent next due and owning under the Lease, including interest at the Interest Rate from the due date until the date of the Rent offset. Notwithstanding the foregoing, if during either the 30-day or 5-day period set forth above, Landlord (i) delivers notice to Tenant that it disputes any portion of the amounts claimed to be due (the “Allowance Dispute Notice”), and (ii) pays any amounts not in dispute, Tenant shall have no right to offset any amounts against rent, but may institute an action to recover such amounts from Landlord. Notwithstanding of the foregoing, in the event Tenant institutes an action as provided herein and the judgement is in favor of Tenant, Tenant shall be entitled, automatically, to offset the amount of such judgement against the Base Rent next coming due under the Lease, including interest at the Interest Rate from the due date until the date of the Rent offset. Further, in the event the judgement is in favor of Tenant, any delay actually caused to Tenant as a result of Landlord’s failure to pay the disputed amount shall be deemed to be a “Landlord Caused Delay” under Section 5 of this Tenant Work Letter.
c.    The Tenant Allowance for the Initial Premises and the Partial Premises shall only be utilized by Tenant for any and all city permits, space planning, engineering and construction costs (including the fee of Contractor), construction management fees, insurance, building permits and other required fees, and to plan and construct improvements which are real property fixtures that will remain with the Premises, and may not be used to purchase or construct trade fixtures, furniture, or other personal property. Notwithstanding the forgoing, Tenant shall be permitted to utilize up to Ten Dollars ($10) per RSF of the Tenant Allowance for data/telephone cabling and wireless equipment, security equipment (access control, alarm and CCTV) and cabling, moving costs, signage, furniture and auxiliary equipment required for the operation of Tenant business. All costs and expenses for such items beyond $10 per RSF and the Excess Costs shall be the sole responsibility of the Tenant subject to any and all change order expenses by Tenant.
d.    Tenant must utilize the Tenant Allowance for the Initial Premises within eighteen (18) months of the Effective Date of the Lease. In the event the Tenant fails to timely utilize all or any portion of the Tenant Allowance, Tenant shall be deemed to forfeit any right to the unused Tenant Allowance.
e.    Tenant shall be obligated to disburse funds relating to the Excess Costs prior to Landlord being obligated to disburse the Tenant Allowance.
f.    Tenant shall periodically submit to Landlord the following items after completion of portions of the Tenant Improvements: (i) bills and invoices covering all labor and material expended for completed Tenant Improvements, (ii) an affidavit from Tenant stating that all such bills and invoices are due and payable for work completed at the Premises as Tenant Improvements, and that all such costs qualify hereunder, (iii) Tenant and Contractor completion affidavits (as applicable), (iv) “As Built” drawings and specifications, (v) a Certificate prepared by Space Planner confirming such Tenant Improvements have been completed in accordance 

with the approved Tenant Working Drawings, (vi) valid mechanics’ lien releases and waivers from all general contractor(s) and subcontractor(s) performing the Tenant Improvements which shall be conditional for the current payment request and shall be unconditional for amounts previously paid by Landlord; and (vii) such other information as reasonably requested by Landlord. No disbursement of the Tenant Allowance shall be made unless: (i) such costs are included in the Tenant Cost Proposal, are for Tenant Improvements, and are covered by the Tenant Allowance for the Initial Premises and for the Partial Premises, respectively; (ii) Tenant has completed and delivered to Landlord a written request for payment, in form reasonably approved by Landlord; (iii) the request for payment is accompanied by the documentation set forth in the foregoing sentence; and (iv) Landlord’s Representative has inspected and approved the work for which Tenant seeks payment or reimbursement (such inspection to occur within the outside payment time period of fourteen (14) days as set forth below). Upon Tenant’s full compliance with the foregoing, and if Landlord determines that there are no applicable or claimed stop notices (or any other statutory or equitable liens of anyone performing any of Tenant Improvements or providing materials for Tenant Improvements) or actions thereon, Landlord shall disburse the Tenant Allowance directly to Tenant. Such payment shall be made within fourteen (14) days following Landlord’s receipt of the required information.
11.    Intentionally Deleted.
12.    Shell Construction.  Landlord shall provide at its sole cost and expense as part of the initial construction of the Building the following items: (i) outside walls, columns and unfinished concrete floors, broom clean; (ii) Building Standard power supplied to the Building core, per building specifications; (iii) water lines to the Building (with Tenant to be responsible for all costs of hook-up of any and all utilities, water, sewer and other similar services with the City in which the Premises is located); (iv) Common Areas existing as of the Effective Date; (v) restrooms existing as of the Effective Date; and (vi) (28) 5-ton high efficient RTUs, (3) high efficient split system heat pumps, (4) wet column stacks to 2nd floor, restroom cores; women (6 toilet, 4 vanity), men (4 toilet, 2 urinal, 4 vanity), fire protection-light hazard (.10gpm/1500sf) NFPA 13/City of Phoenix Amended, SES 3600 A; 277/480 3 Phs Nema 1 rated; meter section w/1 ea=3600 A House Meter; 800 A 277/480 3 Phs Distribution Panels (two (2) per floor), Telco (4 ea) 4” conduits from Raymond ROW to Building (duct distribution and outside air units are excluded from the foregoing). Notwithstanding anything to the contrary contained herein, if Landlord fails to timely fulfill its obligation to perform the Landlord work or any portion thereof (the “Uncompleted Landlord Work”) prior to the Delivery Date, Tenant shall be entitled to deliver notice (the “Landlord Delay Notice”) thereof to Landlord and to any mortgage or trust deed holder of the Building whose identity and address have been previously provided to Tenant. If Landlord still fails to perform the Uncompleted Landlord Work, or commence to perform the same and proceed with due diligence to complete the same, or inform Tenant in reasonable detail why Landlord disagrees that the particular work requested by Tenant is not Landlord’s obligation under this Lease, within ten (10) business days after Landlord’s receipt of the Landlord Delay Notice from Tenant (the “Landlord Cure Period”) and if Landlord fails to deliver notice to Tenant prior to the expiration of the Landlord Cure Period notifying Tenant that Landlord’s failure to perform the Uncompleted Landlord Work is caused by Tenant or a Force Majeure Delay (a “Landlord Delay Response”), Tenant shall be entitled to perform the Uncompleted 

Landlord Work and shall within five (5) business days of the completion thereof deliver written demand to Landlord for the reimbursement of Tenant’s reasonable and actual out-of-pocket costs incurred in connection with the completion of the Uncompleted Landlord Work (“Tenant’s Uncompleted Work Costs”).
13.    Responsibility For Design.  Tenant will be responsible for the design, function and maintenance of all improvements which are not Building Standard, whether or not approved by Landlord or installed by Contractor at Tenant’s request. Landlord’s approval of the Tenant Working Drawings and performance of Landlord’s duties hereunder do not constitute any representation or warranty and shall not obligate Landlord in any manner as to the adequacy, sufficiency, efficiency, performance or desirability of the Tenant Improvements in the Premises.
14.    Indemnity.  Tenant shall indemnify Landlord against and hold Landlord harmless from and against any and all costs, claims or liability arising from: (a) any work performed on or about the Property by or at Tenant’s request; (b) any breach or default in the performance of Tenant’s obligations under this Work Letter; (c) any death, personal injury or property damage caused by or arising from Tenant’s or Contractor’s performance of work or the installation of Tenant Improvements in or about the Premises; or (d) any other acts or omissions of Tenant or Contractor. Tenant shall defend Landlord against any such cost, claim or liability at Tenant’s expense with counsel reasonably acceptable to Landlord. As a material part of the consideration to Landlord, Tenant assumes all risk of damage to property or injury or death to persons in or about the Property arising from any cause, and Tenant hereby waives all claims in respect thereof against Landlord. As used in this Section, the term “Tenant” or “Contractor” shall include Tenant’s or Contractor’s employees, agents, contractors and invitees, if applicable.
15.    Lien Protection.  Tenant shall pay when due all claims for labor or materials furnished or alleged to have been furnished to or for Tenant for use in completing any work at or upon the Premises, which claims are or may be secured by any mechanic’s liens against the Premises or any interest therein. Tenant shall give Landlord not less than ten (10) days prior written notice of any work done on or in the Premises and Landlord shall have the right to post a notice of non-responsibility in or on the Premises as provided by law. If Tenant or Landlord shall contest the validity of any such lien, claim or demand, the Tenant, shall, at its sole cost and expense, defend and protect itself, the Premises and Landlord against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof against the Landlord or the Premises. If Landlord shall require, Tenant shall furnish to Landlord a surety bond satisfactory to Landlord in an amount equal to one and one half times the amount of such contested lien claim or demand, indemnifying Landlord against liability for the same, as required by law to hold the Premises free from the effect of such lien or claim.
16.    Lease Commencement Date Delays.  The Commencement Date shall occur as provided in Section 1.5 of this Lease, provided that the Commencement Date shall be extended by the number of days of actual delay of the Substantial Completion of the Tenant Improvements and/or Tenant’s move into the Premises to the extent caused by a “Commencement Date Delay,” as that term is defined, below. As used herein, the term “Commencement Date Delay” shall mean only a “Force Majeure Delay” or a “Landlord Delay,” as those terms are defined below in this 

Section 16 of this Work Letter. As used herein, the term “Force Majeure Delay” shall mean only an actual delay resulting from strikes, fire, wind, damage or destruction to the Building, explosion, casualty, flood, hurricane, tornado, the elements, acts of God or the public enemy, sabotage, war, invasion, insurrection, rebellion, civil unrest, riots, or earthquakes, failure of utilities, inability to secure labor or materials or reasonable substitutions therefor or inability to secure permits and inspections on an objective basis by any other person or entity constructing improvements comparable to the Tenant Improvements. As used in this Tenant Work Letter, “Landlord Delay” shall mean actual delays to the extent resulting from the acts or omissions of Landlord including, but not limited to (i) failure of Landlord to timely approve or disapprove any construction drawings or change orders or any other items set forth in this Tenant Work Letter requiring Landlord’s approval within time periods set forth in this Tenant Work Letter or this Lease, as applicable, or otherwise within a reasonable period of time (except to the extent deemed approved); (ii) material and unreasonable interference by Landlord, its agents or Landlord Parties (except as otherwise allowed under this Work Letter) with the Substantial Completion of the Tenant Improvements and which objectively preclude or delay the construction of tenant improvements in the Building by any person, which interference relates to access by Tenant, or Tenant’s agents to the Building or any Building facilities (including loading docks and freight elevators) or service and utilities (including temporary power and parking areas as provided herein) during normal construction hours, or the use thereof during normal construction hours; (iii) delays due to the acts or failures to act of Landlord or Landlord parties, including without limitation, with respect to payment of the Tenant Allowance (except as otherwise allowed under this Work Letter) and/or cessation of work as a result thereof; (iv) Landlord’s failure to deliver the Premises with the Landlord work complete; and (v) the discovery by Tenant of Hazardous Materials in the Premises.
(a)    If Tenant contends that a Commencement Date Delay has occurred, Tenant shall notify Landlord in writing of (i) the event which constitutes such Commencement Date Delay within three (3) business days of such event, and (ii) the date upon which such Commencement Date Delay is anticipated to end. If such actions, inaction or circumstance described in the notice set forth in (i) above of this Section 16 of this Tenant Work Letter (the “Delay Notice”) are not cured by Landlord within one (1) business day of Landlord’s receipt of the Delay Notice and if such action, inaction or circumstance otherwise qualify as a Commencement Date Delay, then a Commencement Date Delay shall be deemed to have occurred commencing as of the date of Landlord’s receipt of the Delay Notice and ending as of the date such delay ends.
(b)    For purposes of this Section 16, “Substantial Completion of the Tenant Improvements” shall mean the issuance of a temporary certificate of occupancy or its equivalent for the Premises and completion of construction of the Tenant Improvements in the Premises pursuant to the approved construction drawings, including, with respect to the Tenant Improvements, any furniture, fixtures, work stations, build-in furniture or equipment necessary to obtain a temporary certificate of occupancy or its equivalent (including the final inspection sign-off), with the exception of any punch list items.

17.    Conflict.  In the event of any conflict between the terms of this Work Letter and the remainder of the Lease, the terms of this Work Letter will control.
									
	“LANDLORD”
			
	DARED 89 LLC,
an Arizona limited liability company
			
	By:	Douglas Allred Company, a California Corporation
	Its:	Co-Manager
			
		By:	
		Name:	
		Its: 	
			
	By:	Jammer I LLC, 
an Arizona limited liability company

	Its:	Co-Manager
			
		By:	
		Name:	
		Its:	
			
	“TENANT”
			
	ZipRecruiter, Inc., a Delaware corporation
			
		By:	
		Name:	
		Its:	

EXHIBIT C
RULES AND REGULATIONS
1.    Except as set forth in the Lease, no sign, placard, picture, advertisement, name or notice of any kind shall be inscribed, displayed, printed or affixed on or to any part of the outside or inside of the Project or, Building (excluding within the Premises) or the surrounding area (including sidewalks, landscaping, exterior walls) without the prior written reasonable consent of Landlord. Except as set forth in the Lease, if such consent is given by Landlord, Landlord may regulate the manner of display of the sign, placard, picture, advertisement, name or notice. Landlord shall have the right to remove any sign, placard, picture, advertisement, name or notice which has not been approved by Landlord or is being displayed in a non-approved manner without notice to and at the expense of tenant. All approved signs or lettering shall be printed, painted, affixed or inscribed at the expense of tenant by a person reasonably approved by Landlord. Tenant shall not place anything or allow anything to be placed near any window or any glass door, partition or wall which may appear unsightly from outside the Premises.
2.    The directory for the Building will be provided exclusively for the display of the name and location of the tenants only, and Landlord reserves the right to exclude any other names therefrom.
3.    The sidewalks, parking areas, halls, passages, exits, entrances, elevators, and stairways shall not be obstructed by Tenant or used for any purpose other than for ingress to and egress from the Premises. The halls, passages, exits, entrances, parking areas, elevators, stairways, toilets, balconies and roof are not for the use of the general public and Landlord shall in all cases retain the right to control the same and prevent access thereto by all persons whose presence in the judgment of Landlord shall be prejudicial to the character, reputation and interests of the Project or its tenants. Except as set forth in the Lease, no tenant and no employees or invitees of any tenant shall go upon the roof of the Building.
4.    Tenant shall not alter or replace any lock or install any additional locks or any bolts on any door of the Premises without the written reasonable consent of Landlord. Tenant shall have key card access to the Building and Premises.
5.    The toilet rooms, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be thrown therein. The expense of any breakage, stoppage or damage resulting from a violation of this rule shall be borne by the tenant who, or whose agents, employees, contractors, customers or invitees, shall have caused the same.
6.    Tenant shall not overload the floor of the Premises and shall not in any way deface the Premises or any part thereof.
7.    No bulk freight or equipment of any kind shall be brought into the Project or Building without the reasonable consent of Landlord, and all moving of same in or out of the 

Project or Building shall be done at such time and in such manner as Landlord may reasonably designate. Landlord shall have the right to prescribe the weight, size and position of all bulk safes and other heavy equipment brought into the Building and also the reasonable times and manner of moving the same in and out of the Building. Safes or other heavy objects shall, if considered necessary by Landlord, stand on wood strips of such thickness as shall be necessary to properly distribute the weight. Landlord will not be responsible for loss of or damage to any such safe or property from any cause and all damage done to the Building or Project by moving or maintaining any such safe or other property shall be repaired at the expense of Tenant. There shall not be used in the Premises or the Building any hand trucks except those equipped with rubber tires and side guards.
8.    Window cleaning shall be done only by Landlord at intervals it deems reasonably appropriate.
9.    Tenant shall not use, keep or permit to be used or kept any noxious gas substance in the Premises, or permit or suffer the Premises to be occupied or used in a manner reasonably offensive or objectionable to the Landlord or other occupants of the Building or Project by reason of noise, odors and/or vibrations, or unreasonably interfere in any way with other Tenants or those conducting business in the Building or Project. Tenant shall not make or permit to be made any disturbing noises or disturb or interfere with occupants of the Project or neighboring property, or with those having business with such occupants, by the use of any musical instrument, radio, phonograph, unusual noise, or in any other way. Tenant shall not throw anything out of doors or down the passageways. No cooking shall be done or permitted by Tenant in the Premises except the reheating of food by microwave or toaster oven.
10.    The Premises shall not be used for the manufacturing or for the storage of merchandise except as such may be incidental to the use of the Premises for general office purposes. No Tenant shall occupy or permit any portion of its Premises to be occupied for the manufacture or sale of liquor, narcotics or tobacco in any form, or as a medical office, or as a barber shop or manicure shop except with prior written consent of Landlord. The Premises shall not be used for lodging or sleeping or for illegal purposes.
11.    Except as allowed by the Lease, Tenant shall not use any method of heating or air conditioning other than that supplied by Landlord.
12.    No boring or cutting above or below the Partial Premises or through common walls with other tenants for the stringing of wires will be allowed until the Partial Premises Termination Right has expired and has not been exercised by Tenant, without the written consent of Landlord. The location of the boring or cutting above or below the Partial Premises if not leased by Tenant or through common walls with other tenant for the stringing of wires shall be subject to the reasonable approval of Landlord, but the installation of same shall be at the expense of Tenant. Tenant, upon termination of the tenancy, shall deliver to Landlord all keys to the Building, main suite doors, and toilet rooms which shall have been furnished and remain in Tenant’s possession.

13.    Tenant shall not lay linoleum, tile, carpet or other similar floor coverings so that the same are affixed to the floor of the premises in any manner except as reasonably approved by Landlord. The expense of repairing any damage resulting from a violation of this rule or removal of any floor covering shall be borne by Tenant.
14.    Tenant shall use commercially reasonable efforts to see that the doors of the Premises are closed and securely locked before leaving the Building and that all water faucets, water apparatus and electrical items are shut off before Tenant or Tenant’s employees leave the Building. Tenant shall be responsible for any damage to the Building, the Project or to other Tenants caused by a failure to comply with this rule.
15.    Landlord reserves the right to exclude or expel from the Project any person who, in the judgment of Landlord, is intoxicated or under the influence of drugs, or who shall in any manner do any act in violation of any of the Rules and Regulations of the Project.
16.    Employees of Landlord shall not be requested to perform any work or do anything outside of their regular duties unless under special instructions from Landlord.
17.    Tenant agrees that it shall comply with all fire regulations that may be reasonably issued from time to time by Landlord, and Tenant shall also provide Landlord with the name of a designated responsible employee to represent Tenant in all matters pertaining to fire regulations.
18.    Landlord reserves the right to rescind, alter or waive any rule or regulation at any time prescribed for the Project when, in Landlord’s reasonable judgment, it is necessary, desirable or proper in the best interest of the Project or its Tenants.
19.    Tenant shall not disturb, solicit or canvass an occupant of the Project and shall cooperate to prevent the same.
20.    Without the written consent of Landlord, Tenant shall not use the name of the Project in connection with or in promoting or advertising the business of Tenant, except as Tenant’s address.
21.    All interior, exterior window coverings must be approved by Landlord and Tenant may not install any awnings or other exterior window shades or coverings.
22.    Tenant shall not park in driveways or loading areas or in reserved parking spaces of other Tenants. Landlord or its agents shall have the right to cause to be removed any car of Tenant, its employees, agents, contractors, customers or invitees, that may be parked in unauthorized areas. Tenant will from time to time, upon request of Landlord, supply Landlord with a list of license plate numbers for vehicles owned or operated by its employees and agents.
23.    Tenant understands that the buildings which make up the Premises are “Non-Smoking”. Any smoking to be done shall be done outside of the Smoke Free Arizona limits from building entries and only at designated smoking areas, and smoking material shall be disposed of in the appropriate containers provided.

24.    By executing a copy of these Rules and Regulations, Tenant acknowledges and agrees that it has read and understands these Rules and Regulations and will fully comply with all of the terms and provisions contained herein.
									
	“TENANT”
			
	ZipRecruiter, Inc., a Delaware corporation
			
		By:	
		Name:	
		Its:	

EXHIBIT D
COMMENCEMENT NOTICE
The undersigned Landlord and Tenant have executed that certain Office Lease (the “Lease”) covering those certain premises more particularly described in Section 1.4 of the Lease, (hereinafter referred to as “Premises”), located at 4039 East Raymond Street, Phoenix AZ 85040. Capitalized terms used but not otherwise defined in this Commencement Notice shall have the meanings ascribed to them in the Lease.
Pursuant to Section 1.5 of the Lease, Landlord and Tenant hereby agree and confirm and accordingly amend the Lease with the following information:
1.    The Commencement Date is ________________________________.
2.    The Expiration Date is ________________________________.

The provisions of this Commencement Notice do not and are not intended to void or modify any other provision(s) other than those specifically addressed and agreed to herein, and any construction to the contrary is expressly denied and negated.
									
	“LANDLORD”
			
	DARED 89 LLC, an Arizona limited liability company
			
	By:	
	Its:	
			
		By:	
		Name:	
		Its: 	
			
	By:	Jammer I LLC, 
an Arizona limited liability company

	Its:	Co-Manager
			
		By:	
		Name:	
		Its:	
			
	“TENANT”
			
	ZipRecruiter, Inc., a Delaware corporation
			
		By:	
		Name:	
		Its:	

EXHIBIT E
IRREVOCABLE LETTER OF CREDIT
________Bank
			
	
	
	

DARED 89 LLC
11452 El Camino Real, Suite 200
San Diego, California 92130
RE:    Irrevocable Standby Letter of Credit 
Ladies and Gentlemen:
At the request and for the account of ZipRecruiter, Inc., a Delaware corporation as (“Tenant”), we hereby issue our irrevocable standby letter of credit no. ___________ in favor of  DARED 89 LLC, an Arizona limited liability company as (“Landlord”), (“Beneficiary”) for the sum or sums not exceeding Three Million Five Hundred Thousand and 00/100 Dollars ($3,500,000.00) (“Letter of Credit”) available upon demand in accordance with the terms and conditions set forth in this letter.
You may draw on this Letter of Credit from time to time when we receive a signed certificate from you in one of the forms attached hereto. The certificate may be signed by one or more of your authorized signatory, or by an authorized signatory of the transferee of Beneficiary as follows.
1.    In the form of Attachment A, if the drawing is made with respect to a default of the lease between Tenant and Landlord dated __________________, 2020 (the “Lease”).
Or
2.    In the form of Attachment B if the drawing is made as a result of this Letter of Credit not being extended as provided below.
The appropriate certificate shall have all blanks filled in and, shall be personally delivered to us at our office listed above or shall be sent to us by overnight mail, or overnight courier service at our office listed above.
PARTIAL DRAWINGS AND MULTIPLE PRESENTATIONS ARE ALLOWED.
Demand for payment may be made by you hereunder at any time at our office listed above PAYMENT AGAINST CONFORMING PRESENTATIONS HEREUNDER PRIOR TO 

10:00 A.M. CALIFORNIA TIME, ON A BUSINESS DAY SHALL BE MADE BY BANK DURING NORMAL BUSINESS HOURS OF THE BANK’S OFFICE ON THE NEXT SUCCEEDING BUSINESS DAY. PAYMENT AGAINST CONFORMING PRESENTATIONS HEREUNDER AFTER 10:00 A.M. CALIFORNIA TIME, ON A BUSINESS DAY SHALL BE MADE BY BANK DURING NORMAL BUSINESS HOURS OF THE BANK’S OFFICE ON THE SECOND SUCCEEDING BUSINESS DAY. AS USED IN THIS LETTER OF CREDIT, “BUSINESS DAY” SHALL MEAN ANY DAY OTHER THAN A SATURDAY, SUNDAY, LEGAL HOLIDAY OR A DAY ON WHICH BANKING INSTITUTIONS IN THE STATE OF CALIFORNIA ARE AUTHORIZED OR REQUIRED BY LAW TO CLOSE.
Drawings in respect of payments hereunder honored by us shall not, in the aggregate, exceed Three Million Five Hundred Thousand Dollars ($3,500,000.00). Each drawing honored by us shall reduce, by the amount of such drawing, the amount available under this Letter of Credit.
This Letter of Credit will expire on __________________, at 5:00 p.m., California time on that date; provided, however, it is a condition of this Letter of Credit that it shall be deemed to be automatically extended for successive terms of one (1) year from the present or any future expiration date hereof, unless at least (30) thirty days prior to any such annual extension date, we shall notify you in writing that we elect not to consider this Letter of Credit extended for any such additional one year period. Upon receipt by you of such notice, you may draw an amount equal to the aggregate undrawn amount hereof by means of your demand accompanied by your written certification (in the form attached hereto as Attachment “B”). IN NO EVENT SHALL THIS LETTER OF CREDIT BE AUTOMATICALLY EXTENDED BEYOND __________________. 
THIS LETTER OF CREDIT IS TRANSFERABLE IN WHOLE BUT NOT IN PART ONE OR MORE TIMES, BUT IN EACH INSTANCE ONLY TO A SINGLE BENEFICIARY AS TRANSFEREE AND for THE THEN AVAILABLE AMOUNT, ASSUMING SUCH TRANSFER TO SUCH TRANSFEREE WOULD BE IN COMPLIANCE WITH THEN APPLICABLE LAW AND REGULATION, INCLUDING BUT NOT LIMITED TO THE REGULATIONS OF THE U.S. DEPARTMENT OF TREASURY AND U.S. DEPARTMENT OF COMMERCE. AT THE TIME OF TRANSFER, THE ORIGINAL LETTER OF CREDIT AND ORIGINALS OR COPIES OF ALL AMENDMENTS, IF ANY, TO THIS LETTER OF CREDIT MUST BE SURRENDERED TO US AT OUR ADDRESS INDICATED IN THIS LETTER OF CREDIT TOGETHER WITH OUR TRANSFER FORM ATTACHED HERETO AS EXHIBIT A DULY EXECUTED. APPLICANT SHALL PAY OUR TRANSFER FEE OF 1/4 OF 1% OF THE TRANSFER AMOUNT (MINIMUM US $250.00) UNDER THIS LETTER OF CREDIT. EACH TRANSFER SHALL BE EVIDENCED BY EITHER (1) OUR ENDORSEMENT ON THE REVERSE OF THE LETTER OF CREDIT AND WE SHALL FORWARD THE ORIGINAL OF THE LETTER OF CREDIT SO ENDORSED TO THE TRANSFEREE OR (2) OUR ISSUING A REPLACEMENT LETTER OF CREDIT TO THE TRANSFEREE ON SUBSTANTIALLY THE SAME TERMS AND CONDITIONS AS THE TRANSFERRED LETTER OF CREDIT (IN WHICH EVENT THE TRANSFERRED LETTER OF CREDIT SHALL HAVE NO FURTHER EFFECT).

All payments under this Letter of Credit will be made by wire transfer of immediately available funds into the bank account specified by you in the demand certificate. All amounts to be paid under this Letter of Credit shall be made without any deduction, set-off, counterclaim or withholding of any kind.
We hereby agree with you that document(s) drawn under and in compliance with the terms of this Letter of Credit will be duly honored upon presentation and delivery to_________________ Silicon Valley Bank at the address above, if presented on or prior to the expiration date or any automatically extended expiration date. Documents are to be sent in one lot by courier service, overnight mail, or hand delivery.
All banking charges under this Letter of Credit ARE for the account of the Applicant.
For all purposes of this Letter of Credit, “you”, “yours” and other similar terms shall refer to the Beneficiary.
THIS LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES (ISP98), INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 590.
This Letter of Credit sets forth in full our undertaking, and such undertaking shall not in any way be modified, amended, amplified, or limited by reference to any document, instrument or agreement referred to herein. Any reference in this Letter of Credit to such documents shall not be deemed to incorporate herein by reference any document, instrument or agreement except for the attached certificates.
Except as stated herein, this Letter of Credit is not subject to any condition or qualification and THE OBLIGATION OF SILICON VALLEY BANK UNDER THIS LETTER OF CREDIT IS THE INDIVIDUAL OBLIGATION OF SILICON VALLEY BANK AND IS IN NO WAY CONTINGENT UPON REIMBURSEMENT WITH RESPECT THERETO.
									
	Very truly yours,
	
			
		BANK
			
	By:	
	Its:	

Attachment A to the
________________ Bank
Irrevocable Standby Letter of Credit
_________________, 20__
						
		Bank
	
	
	

RE:    Drawing Certification of Default and Demand for Payment
Ladies and Gentlemen:
The undersigned hereby certifies to_____________________ Silicon Valley Bank that:
1.    They are the beneficiary under that certain Stand-by Irrevocable Letter of Credit No. ____________, issued by _________________ Silicon Valley Bank dated _______________, 2020 (the “Letter of Credit”).
2.    A default has occurred in connection with the lease between ZipRecruiter, Inc. (“Tenant”) and DARED 89 LLC (“Landlord”) dated    , 2020 (the “Lease”).
3.    The amount of $_____________ is the amount of the default under Section 2 above and such default amount is owing to Landlord pursuant to the Lease.
Demand is hereby made on ___________ Silicon Valley Bank for the sum of $_____________. Please wire transfer said funds to our account at ______________________, Account No. _________.  The bank routing number is ________________. 
DATED this ____ day of _____________________, ______.
									
	LANDLORD:

	[INSERT NAME OF BENEFICIARY]
			
	
			
	or		
	
	TRANSFEREE of		(Landlord)

Attachment B to the
________________ Bank
Irrevocable Standby Letter of Credit
_________________, 20__
						
		Bank
	
	
	

RE:    Demand for Payment due to Non-Extension of Letter of Credit
Ladies and Gentlemen:
The undersigned hereby certifies that:
1.    They are the beneficiary under that certain Stand-by Irrevocable Letter of Credit No. ____________, issued by _________________ Silicon Valley Bank dated______________, 2001 (the “Letter of Credit”).
2.    Silicon Valley Bank has given notice to the undersigned Beneficiary of the Letter of Credit that it is not extending the Letter of Credit.
3.    The undersigned Beneficiary is owed the amount of $__________________ by ZipRecruiter, Inc. (“Tenant”) pursuant to a lease dated ____________, 2020 with DARED 89 LLC (“Landlord”).
Demand is hereby made on __________________ Silicon Valley Bank for the sum of $__________________ .  Please wire transfer said funds to our account at the                         , account number _______________.  The bank routing number is _________________.
DATED this ____ day of _____________________, ______.
									
	LANDLORD:

	[INSERT NAME OF BENEFICIARY]
			
	
			
	or		
	
	TRANSFEREE of		(Landlord)

Attachment C
Form of Transfer Form
DATE: ___________________
						
	TO:    SILICON VALLEY BANK
3003 TASMAN DRIVE
SANTA CLARA, CA 95054
ATTN: GLOBAL TRADE FINANCE
STANDBY LETTERS OF CREDIT
	RE:    IRREVOCABLE STANDBY LETTER OF CREDIT
NO. _______________________ ISSUED BY
SILICON VALLEY BANK, SANTA CLARA
L/C AMOUNT: ________________________

GENTLEMEN:
FOR VALUE RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS TO:
			
	
	(NAME OF TRANSFEREE)

			
	
	(ADDRESS)

ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF CREDIT UP TO ITS AVAILABLE AMOUNT AS SHOWN ABOVE AS OF THE DATE OF THIS TRANSFER.
BY THIS TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF CREDIT ARE TRANSFERRED TO THE TRANSFEREE. TRANSFEREE SHALL HAVE THE SOLE RIGHTS AS BENEFICIARY THEREOF, INCLUDING SOLE RIGHTS RELATING TO ANY AMENDMENTS, WHETHER INCREASES OR EXTENSIONS OR OTHER AMENDMENTS, AND WHETHER NOW EXISTING OR HEREAFTER MADE. ALL AMENDMENTS ARE TO BE ADVISED DIRECTLY TO THE TRANSFEREE WITHOUT NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED BENEFICIARY.
THE ORIGINAL OF SUCH LETTER OF CREDIT IS RETURNED HEREWITH, AND WE ASK YOU TO EITHER (1) ENDORSE THE TRANSFER ON THE REVERSE THEREOF, AND FORWARD IT DIRECTLY TO THE TRANSFEREE WITH YOUR CUSTOMARY NOTICE OF TRANSFER, OR (2) ISSUE A REPLACEMENT LETTER OF CREDIT TO THE TRANSFEREE ON SUBSTANTIALLY THE SAME TERMS AND CONDITIONS AS THE 

TRANSFERRED LETTER OF CREDIT (IN WHICH EVENT THE TRANSFERRED LETTER OF CREDIT SHALL HAVE NO FURTHER EFFECT).
									
	SINCERELY,		SIGNATURE AUTHENTICATED
			
			The name(s), title(s), and signature(s) conform to that/those on file with us for the company and the signature(s) is/are authorized to execute this instrument.

	(BENEFICIARY’S NAME)		
			(Name of Bank)
	(SIGNATURE OF BENEFICIARY)		
			(Address of Bank)
	(NAME AND TITLE)		
			(City, State, ZIP Code)
			

EXHIBIT F
SNDA
RECORDING REQUESTED BY 
MUFG UNION BANK, N.A.
AND WHEN RECORDED MAIL TO:
MUFG UNION BANK, N.A.
Attn: Collateral Management (T-83E-5122)
P. O. Box 29235
Phoenix, AZ 85038-9235
			
	

Space above this line for Recorder’s use.
SUBORDINATION, NONDISTURBANCE AND ATTORNMENT AGREEMENT
THIS SUBORDINATION, NONDISTURBANCE AND ATTORNMENT AGREEMENT (the “Agreement”) is made as of March , 2020 by and among MUFG Union Bank, N.A. (“Bank”), Dared 89 LLC, an Arizona limited liability company (“Borrower”), (“Collateral Owner”) and ZipRecruiter, Inc., a Delaware corporation (“Tenant”).
RECITALS:
A.    Bank has made or has agreed to make a loan (the “Loan”) to Borrower evidenced by, among other things, a debt instrument executed or to be executed by Borrower in favor of Bank in the principal amount of the Loan (as amended from time to time, the “Note”).
B.    The Note and certain other obligations of Borrower under the Loan are or will be secured by, among other things, a deed of trust (as amended from time to time, the “Deed of Trust”). The Deed of Trust, executed or to be executed by Borrower in favor of Bank, and previously recorded or to be recorded concurrently herewith, encumbers the estate of Borrower in certain real property and improvements commonly known as 4039 East Raymond Street, Phoenix, AZ 85040, and more particularly described on Exhibit A attached hereto (the “Property”).
C.    Borrower has leased a portion of the Property to Tenant subject to the terms and conditions of an unrecorded lease dated March 2, 2020 (as amended from time to time, the “Lease”) covering that certain property commonly known as 4039 East Raymond Street, Phoenix, Arizona 85040 (the “Premises”).

D.    As a condition to making the Loan, Bank requires that Tenant subordinate the Lease to the Deed of Trust and the lien thereof and attorn to Bank as provided below. Tenant is willing to provide such subordination and attornment provided Bank agrees not to disturb Tenant’s right to possession under the Lease as provided below.
AGREEMENT:
For good and valuable consideration, Tenant, Borrower, and Bank agree as follows:
1.    SUBORDINATION.  Tenant hereby subordinates the Lease and all rights, remedies and options of Tenant thereunder, including without limitation any option to purchase or right of first refusal to purchase the Property or any part thereof or interest therein, to the Deed of Trust and to the lien thereof and to all sums secured thereby and advances made thereunder with the same force and effect as if the Deed of Trust had been executed, delivered and recorded prior to the execution and delivery of the Lease.
2.    NON DISTURBANCE.  Bank will not join Tenant as a party in any Foreclosure unless the joinder is necessary or desirable to pursue its remedies under the Deed of Trust, and provided that such joinder shall not result in the termination of the Lease or disturb Tenant’s possession of the Premises. In the event of a Foreclosure (defined below), Bank agrees that the leasehold interest of Tenant under the Lease shall not be terminated by reason of the Foreclosure, but rather the Lease shall continue in full force and effect and Bank shall recognize and accept Tenant as tenant under the Lease subject to the provisions of the Lease except as otherwise provided below; provided that, if Tenant shall then be in default under the Lease beyond any notice, grace or cure period, at Bank’s option the Lease shall be terminated by reason of the Foreclosure and Bank shall have no obligation to Tenant under the Lease. As used in this Agreement, “Foreclosure” means any non-judicial or judicial foreclosure or other enforcement of the remedies of the Deed of Trust, or any deed or other transfer in lieu thereof.
3.    ATTORNMENT.  In the event of a transfer of Borrower’s interest in the Property to a Purchaser (defined below), Tenant agrees that the Lease of the Premises shall continue in full force and effect and Tenant agrees to attorn to the Purchaser as its landlord under the Lease and to be bound by all of the provisions of the Lease for the balance of the term thereof; provided that, the Purchaser shall not be:
3.1    Liable for any act or omission of any Prior Landlord (defined below) or subject to any offsets or defenses which Tenant might have against any Prior Landlord except (i) offsets specifically provided for in the Lease, or (ii) those which arose out of Prior Landlord’s default under the Lease and continue uncured after Tenant has notified Bank and given Bank an opportunity to cure as provided for in SNDA: Section 5 below;
3.2    Liable for the return of any rental security deposit, or bound by any payment of rents, additional rents or other sums which Tenant may have paid more than one month in advance to any Prior Landlord, except to the extent such sums are actually received by Purchaser;

3.3    Bound by any amendment to the Lease made without Bank’s prior written consent which would (i) reduce the fixed annual rent, additional rent, percentage rent or any other monetary obligations of Tenant under the Lease, (ii) reduce the term of the Lease, (iii) reallocate the responsibility for obtaining any insurance coverage required under the terms of the Lease, (iv) eliminate or substantially modify any representation, warranty, covenant or indemnity of Tenant under the Lease, (v) increase the repair or maintenance obligations of the landlord under the Lease, (vi) result in or make the landlord’s obligations thereunder any more onerous, or (vii) otherwise materially and adversely impact the economics of the Lease to the detriment of the landlord thereunder;
3.4    Liable for obligations which accrue after Purchaser has sold or otherwise transferred its interest in the Property;
3.5    Bound to install, construct or pay for any improvements on the Property, or bound to restore the Property after a casualty for a cost in excess of proceeds recovered under any insurance required to be carried under the Lease (excluding the deductible), or bound to restore the Property after a taking for a cost in excess of any condemnation award, but in each event, Tenant shall maintain a termination right if the Property is not fully restored;
3.6    Bound by any notice of termination, cancellation or surrender of the Lease made without Bank’s prior written consent unless the Lease expressly grants to Tenant the right to terminate or cancel the Lease in such circumstances;
3.7    Bound by any representation, warranty, covenant or indemnity contained in the Lease except to the extent that Bank’s affirmative act(s) constitute or result in a violation of any such representation, warranty, covenant or indemnity; provided, however, in no event shall Bank be bound by any representation, warranty, covenant or indemnity relating to the title, zoning designation, permitted use of the Property, or sufficiency of the Property for any use, or any matters related to the foregoing, and none of the foregoing exceptions shall apply to such representations, warranties, covenants or indemnities; and
3.8    Bound by any option to purchase or right of first refusal with respect to the Property or any portion thereof.
This attornment shall be immediately effective and self-operative, without the execution of any further instrument, upon Purchaser’s acquisition of Borrower’s interest in the Property. As used in this Agreement, “Purchaser” means any transferee, including Bank, of Borrower’s rest in the Property pursuant to a Foreclosure, and the successors and assigns of such transferee, and “Prior Landlord” means any landlord, including Borrower, under the Lease prior in time to Purchaser.
4.    NOTICE TO TENANT; RENTALS DUE TO BANK.  After written notice is given to Tenant by Bank that Borrower is in default under the Loan and that the rentals under the Lease should be paid to Bank pursuant to the terms of the Deed of Trust, Tenant shall thereafter pay to Bank all rent and all other sums due Borrower under the Lease, and Borrower hereby irrevocably authorizes Tenant to make such payments to Bank and releases and discharges Tenant of and 

from any liability to Borrower on account of any such payments. Borrower shall hold Tenant harmless against any claim relating to such payments to Bank.
5.    NOTICE TO BANK AND RIGHT TO CURE.  Tenant shall provide written notice to Bank of any default by Borrower under the Lease and Tenant agrees that no notice of termination of the Lease or of an abatement of rent (except for rights to abate rent specifically set forth in the Lease) shall be effective unless Bank shall have received written notice of default giving rise to such termination or abatement and shall have failed within 30 days after receipt of such notice to cure such default, or if such default cannot be cured within 30 days, shall have failed within 30 days after receipt of such notice to commence and thereafter diligently pursue any action necessary to cure such default, including without limitation any action to obtain possession of the Property. Notwithstanding the foregoing, Bank shall have no obligation to cure any such default.
6.    MISCELLANEOUS. This Agreement shall be binding upon and inure to the benefit of Bank and Tenant and their respective successors and assigns. This Agreement shall be governed and interpreted under the laws of the state where the Property is located. This Agreement is the entire agreement of the parties and supersedes any prior agreement with respect to its subject matter, and no provision of this Agreement may be waived or modified except in a writing signed by all parties. If any lawsuit, arbitration or other proceeding is brought under this Agreement, the prevailing party shall be entitled to recover the reasonable fees and costs of its attorneys in such proceeding. If any provision of this Agreement is held to be invalid or unenforceable in any respect, this Agreement shall be construed without such provision. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same document. Tenant represents and warrants to Bank that this Agreement is a valid and binding agreement of Tenant and the person(s) executing this Agreement on behalf of Tenant have the authority to do so.

IN WITNESS WHEREOF, Bank, Borrower, and Tenant have duly executed this Agreement as of the date first above written.
						
	BANK:
		
	MUFG Union Bank, N.A.
		
		
	By:	
	Name:	
	Title:	
		
		
	BORROWER:

		
	Dared 89 LLC
an Arizona limited liability company

		
	By:	Douglas Allred Company,
		a California corporation
		Its Manager
		
		
	By:	
	Name:	Bryan D. Putnam
	Title:	Chief Financial Officer
		
	TENANT:
		
	ZipRecruiter, Inc.
	A Delaware Corporation
		
	By:	
	Name:	
	Title:	

EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MARICOPA, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:
LOTS 5 AND 6 AND A PORTION OF LOT 7, OF MARICOPA FREEWAY CENTER UNIT 1 NORTH, A SUBDIVISION RECORDED IN BOOK 129 OF MAPS, PAGE 12, RECORDS OF MARICOPA COUNTY, ARIZONA LOCATED IN THE SOUTHWEST QUARTER OF SECTION 19, TOWNSHIP 1 NORTH, RANGE 4 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, MARICOPA COUNTY, ARIZONA MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE CITY OF PHOENIX BRASS CAP IN HANDHOLE MARKING THE SOUTHWEST CORNER OF SAID SECTION 19 FROM WHICH A CITY OF PHOENIX BRASS CAP FLUSH MARKING THE WEST QUARTER CORNER OF SAID SECTION 19 BEARS NORTH 00 DEGREES 59 MINUTES 35 SECONDS WEST 2657.05 FEET, SAID DESCRIBED LINE BEING THE BASIS OF BEARING FOR THIS DESCRIPTION;
THENCE NORTH 00 DEGREES 59 MINUTES 35 SECONDS WEST 1608.56 FEET ALONG THE WEST LINE OF SAID SOUTHWEST QUARTER TO THE NORTH LINE OF THE STATE HIGHWAY WARRANTY DEED RECORDED IN DOCKET 6535, PAGE 303, RECORDS OF MARICOPA COUNTY, ARIZONA;
THENCE SOUTH 85 DEGREES 21 MINUTES 12 SECONDS EAST 104.44 FEET ALONG SAID NORTH LINE TO THE SOUTHWEST CORNER OF SAID LOT 5;
THENCE NORTH 02 DEGREES 12 MINUTES 31 SECONDS WEST 76.69 FEET ALONG THE WEST LINE OF SAID LOT 5 TO THE NORTH RIGHT OF WAY LINE OF INTERSTATE 10 RECORDED IN DOCUMENT NO. 2012-1179766, RECORDS OF MARICOPA COUNTY, ARIZONA AND THE POINT OF BEGINNING;
THENCE CONTINUING NORTH 02 DEGREES 12 MINUTES 31 SECONDS WEST 541.94 FEET TO THE NORTHWEST CORNER OF SAID LOT 5 AND THE BEGINNING OF A NON-TANGENT CURVE TO THE RIGHT THE CENTER OF WHICH BEARS SOUTH 00 DEGREES 34 MINUTES 42 SECONDS EAST 542.96 FEET;
THENCE EASTERLY ALONG SAID NORTH LINE AND THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 19 DEGREES 26 MINUTES 36 SECONDS, AN ARC LENGTH OF 184.25 FEET;
THENCE SOUTH 71 DEGREES 14 MINUTES 45 SECONDS EAST 99.86 FEET CONTINUING ALONG NORTH LINE OF SAID LOT 5 AND 6 TO THE BEGINNING OF A NON-TANGENT CURVE TO THE LEFT THE CENTER OF WHICH BEARS NORTH 18 DEGREES 54 MINUTES 21 SECONDS EAST 602.96 FEET;

THENCE EASTERLY ALONG SAID NORTH LINE AND THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 19 DEGREES 37 MINUTES 50 SECONDS, AN ARC LENGTH OF 206.58 FEET TO THE NORTHWEST CORNER OF SAID LOT 7;
THENCE NORTH 89 DEGREES 15 MINUTES 49 SECONDS EAST 135.32 FEET ALONG THE NORTH LINE OF SAID LOT 7;
THENCE SOUTH 04 DEGREES 38 MINUTES 17 SECONDS WEST 289.34 FEET; THENCE SOUTH 85 DEGREES 21 MINUTES 12 SECONDS EAST 24.04 FEET;
THENCE SOUTH 04 DEGREES 38 MINUTES 48 SECONDS WEST 213.37 FEET TO NORTH RIGHT OF WAY LINE OF SAID INTERSTATE 10;
THENCE NORTH 85 DEGREES 01 MINUTES 21 SECONDS WEST 164.97 FEET ALONG SAID RIGHT OF WAY LINE;
THENCE NORTH 82 DEGREES 56 MINUTES 45 SECONDS WEST 99.87 FEET CONTINUING ALONG SAID RIGHT OF WAY LINE;
THENCE NORTH 85 DEGREES 05 MINUTES 21 SECONDS WEST 313.98 FEET CONTINUING ALONG SAID RIGHT OF WAY LINE TO THE POINT OF BEGINNING;

CALIFORNIA NOTARY ACKNOWLEDGMENT FORM
			
	

			
	A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

																					
	State of California
	)		
							
	County of		)		
							
							
	On		before me,		, Notary Public,
			Date			Name	
							
	Personally appeared	
					Name(s) of Signer(s)	
							
							

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
						
	WITNESS my hand and official seal.
		
	Signature	
		Signature of Notary Public

(Place Notary Seal Above)

CALIFORNIA NOTARY ACKNOWLEDGMENT FORM
    
			
	A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

																					
	State of California
	)		
							
	County of		)		
							
							
	On		before me,		, Notary Public,
			Date			Name	
							
	Personally appeared	
					Name(s) of Signer(s)	
							
							

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
						
	WITNESS my hand and official seal.
		
	Signature	
		Signature of Notary Public

(Place Notary Seal Above)

INSERT TENANT FORM OF NOTARYDocument

Exhibit 10.21

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
THIS SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of September 2, 2020 (the “Effective Date”), between SILICON VALLEY BANK, a California corporation (“Bank”), and ZIPRECRUITER, INC., a Delaware corporation (“Borrower”), provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank and amends and supersedes, in its entirety, that certain Amended and Restated Loan and Security Agreement by and between Bank and Borrower dated as of November 21, 2019 (as amended from time to time, the “Original Agreement”).  The parties agree as follows:
1.ACCOUNTING AND OTHER TERMS
Except as otherwise provided in this Agreement, (i) accounting terms not defined in this Agreement and (ii) calculations and determinations must be made following GAAP. Notwithstanding the foregoing, all financial covenant and other financial calculations shall be computed with respect to Borrower only, and not on a consolidated basis.  Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13.  All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein.
2.LOAN AND TERMS OF PAYMENT
2.1Promise to Pay.  Borrower hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement.
2.2Revolving Line.
(a)Availability.  Subject to the terms and conditions of this Agreement and to the deduction of Reserves, Bank shall make Advances to Borrower in an aggregate amount not exceeding the lesser of (i) the Revolving Line or (ii) Availability Amount.  Amounts borrowed under the Revolving Line may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 
(b)Termination; Repayment.  The Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable.
2.3Letters of Credit Sublimit. 
(a)As part of the Revolving Line, Bank shall issue or have issued Letters of Credit denominated in Dollars or a Foreign Currency for Borrower’s account.  The aggregate Dollar Equivalent amount utilized for the issuance of Letters of Credit shall at all times reduce the amount otherwise available for Advances under the Revolving Line.  The aggregate Dollar Equivalent of the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) may not exceed Ten Million Dollars ($10,000,000). 
(b)If, on the Revolving Line Maturity Date (or the effective date of any termination of this Agreement), there are any outstanding Letters of Credit, then on such date Borrower shall provide to Bank cash collateral in an amount equal to at least one hundred five percent (105.0%) for Letters of Credit denominated in Dollars or at least one hundred ten percent (110.0%) for Letters of Credit denominated in a Foreign Currency, in each case of the aggregate Dollar Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or estimated by Bank to become due in connection therewith, to secure all of the Obligations relating to such Letters of Credit.  All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s standard Application and Letter of Credit Agreement (the “Letter of Credit Application”).  Borrower agrees to execute any further documentation in 

connection with the Letters of Credit as Bank may reasonably request.  Borrower further agrees to be bound by the regulations and interpretations of the issuer of any Letters of Credit guaranteed by Bank and opened for Borrower’s account or by Bank’s interpretations of any Letter of Credit issued by Bank for Borrower’s account, and Borrower understands and agrees that Bank shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments, or supplements thereto.
(c)The obligation of Borrower to immediately reimburse Bank for drawings made under Letters of Credit shall be absolute, unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the Letter of Credit Application.  
(d)Borrower may request that Bank issue a Letter of Credit payable in a Foreign Currency.  If a demand for payment is made under any such Letter of Credit, Bank shall treat such demand as an Advance to Borrower of the Dollar Equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges).
(e)To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a Foreign Currency, Bank shall create a reserve (the “Letter of Credit Reserve”) under the Revolving Line in an amount equal to a percentage (which percentage shall be determined by Bank in its sole discretion) of the face amount of such Letter of Credit.  The amount of the Letter of Credit Reserve may be adjusted by Bank from time to time to account for fluctuations in the exchange rate.  The availability of funds under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such Letter of Credit remains outstanding.
2.4Cash Management Services Sublimit.  Borrower may use an amount up to the Cash Management Sublimit for Bank’s cash management services which may include merchant services, FX Contracts, direct deposit of payroll, business credit card, and check cashing services identified in Bank’s various cash management services agreements (collectively, the “Cash Management Services”).  Any amounts used by Borrower for Cash Management Services will be treated as Advances under the Revolving Line, will accrue interest at the interest rate applicable to Advances, and will reduce the amount otherwise available for Credit Extensions thereunder.
2.5Overadvances.  If, at any time, the sum of (a) the outstanding principal amount of any Advances plus (b) amounts used by Borrower for Cash Management Services, plus (c) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), exceeds the Revolving Line, Borrower shall immediately pay to Bank in cash the amount of such excess (such excess, the “Overadvance”).  Without limiting Borrower’s obligation to repay Bank any Overadvance, Borrower agrees to pay Bank interest on the outstanding amount of any Overadvance, on demand, at a per annum rate equal to the rate that is otherwise applicable to Advances plus five percent (5.00%). 
2.6Payment of Interest on the Credit Extensions.
(a)Interest Rate. Subject to Section 2.6(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the greater of (i) one quarter of one percentage point (0.25%) above the Prime Rate, and (ii) four and one half percentage points (4.50%), which interest shall be payable monthly in accordance with Section 2.6(d) below. 
(b)Default Rate.  Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is five percent (5.00%) above the rate that is otherwise applicable thereto (the “Default Rate”).  Fees and expenses which are required to be paid by Borrower pursuant to the Loan Documents (including, without limitation, Bank Expenses) but are not paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations.  Payment or acceptance of the increased interest rate provided in this Section 2.6(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank.
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(c)Adjustment to Interest Rate.  Changes to the interest rate of any Credit Extension based on changes to the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the extent of any such change.
(d)Payment; Interest Computation.  Interest is payable monthly on the Payment Date of each month and shall be computed on the basis of a three hundred sixty (360) day year for the actual number of days elapsed.  In computing interest, (i) all payments received after 12:00 p.m. Pacific time on any day shall be deemed received at the opening of business on the next Business Day, and (ii) the date of the making of any Credit Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension.
2.7Fees.  Borrower shall pay to Bank:
(a)Letter of Credit Fee.  Bank’s customary fees and expenses for the issuance or renewal of Letters of Credit upon the issuance of such Letter of Credit, each anniversary of the issuance during the term of such Letter of Credit, and upon the renewal of such Letter of Credit by Bank;
(b)Unused Revolving Line Facility Fee.  Payable monthly in arrears on the last day of each calendar month occurring thereafter prior to the Revolving Line Maturity Date, and on the Revolving Line Maturity Date, a fee (the “Unused Revolving Line Facility Fee”) in an amount equal to one half of one percentage point (0.50%) per annum of the average unused portion of the Revolving Line, as determined by Bank, computed on the basis of a year with the applicable number of days as set forth in Section 2.6(d).  The unused portion of the Revolving Line, for purposes of this calculation, shall be calculated on a calendar year basis and shall equal the difference between (i) the Revolving Line, and (ii) the average for the period of the daily closing balance of the Revolving Line outstanding (including outstanding amounts used by Borrower for Cash Management Services) plus the sum of the aggregate amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve); and
(c)Bank Expenses.  All Bank Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement; provided that Bank shall notify Borrower in writing prior to such fees and expenses exceeding Fifteen Thousand Dollars ($15,000)) incurred through and after the Effective Date, when due (or, if no stated due date, upon demand by Bank).
(d)Fees Fully Earned.  Unless otherwise provided in this Agreement or in a separate writing by Bank, Borrower shall not be entitled to any credit, rebate, or repayment of any fees earned by Bank pursuant to this Agreement notwithstanding any termination of this Agreement or the suspension or termination of Bank’s obligation to make loans and advances hereunder.  Bank may deduct amounts owing by Borrower under the clauses of this Section 2.7 pursuant to the terms of Section 2.8(c).  Bank shall provide Borrower written notice of deductions made from the Designated Deposit Account pursuant to the terms of the clauses of this Section 2.7.
2.8Payments; Application of Payments; Debit of Accounts.
(a)All payments to be made by Borrower under any Loan Document shall be made in immediately available funds in Dollars, without setoff or counterclaim, before 12:00 p.m. Pacific time on the date when due.  Payments of principal and/or interest received after 12:00 p.m. Pacific time are considered received at the opening of business on the next Business Day.  When a payment is due on a day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable, shall continue to accrue until paid.
(b)Bank has the exclusive right to determine the order and manner in which all payments with respect to the Obligations may be applied.  Borrower shall have no right to specify the order or the accounts to which Bank shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such allocation or application is not specified elsewhere in this Agreement.
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(c)Bank may debit any of Borrower’s deposit accounts, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank when due; provided, however, that Bank shall not debit any deposit account other than the Designated Deposit Account unless the Designated Deposit Account contains insufficient funds to make any principal, any interest payment or payment for any other amount when due, and only after providing written notice to Borrower that such funds shall be debited from an alternate account.   These debits shall not constitute a set-off.
2.9Withholding.  Payments received by Bank from Borrower under this Agreement will be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority (including any interest, additions to tax or penalties applicable thereto).  Specifically, however, if at any time any Governmental Authority, applicable law, regulation or international agreement requires Borrower to make any withholding or deduction from any such payment or other sum payable hereunder to Bank, Borrower hereby covenants and agrees that the amount due from Borrower with respect to such payment or other sum payable hereunder will be increased to the extent necessary to ensure that, after the making of such required withholding or deduction, Bank receives a net sum equal to the sum which it would have received had no withholding or deduction been required, and Borrower shall pay the full amount withheld or deducted to the relevant Governmental Authority.  Borrower will, upon request, furnish Bank with proof reasonably satisfactory to Bank indicating that Borrower has made such withholding payment; provided, however, that Borrower need not make any withholding payment if the amount or validity of such withholding payment is contested in good faith by appropriate and timely proceedings and as to which payment in full is bonded or reserved against by Borrower.  The agreements and obligations of Borrower contained in this Section 2.9 shall survive the termination of this Agreement.
3CONDITIONS OF LOANS
3.1Conditions Precedent to Initial Credit Extension.  Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation:
(a)duly executed original signatures to the Loan Documents;
(b)the Operating Documents and long-form good standing certificates of Borrower certified by the Secretary of State (or equivalent agency) of Borrower’s jurisdiction of organization or formation and each jurisdiction in which Borrower is qualified to conduct business, each as of a date no earlier than thirty (30) days prior to the Effective Date;
(c)a secretary’s certificate of Borrower with respect to such Borrower’s Operating Documents, incumbency, specimen signatures and resolutions authorizing the execution and delivery of this Agreement and the other Loan Documents to which it is a party;
(d)duly executed original signatures to the completed Borrowing Resolutions for Borrower;
(e)a Subordination Agreement duly executed by the creditors listed therein in favor of Bank, together with the duly executed signatures thereto and copies of the underlying documents evidencing Borrower’s Indebtedness with such Person;
(f)certified copies, dated as of a recent date, of financing statement searches, as Bank may request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released; 
(g)the Perfection Certificate of Borrower, together with the duly executed original signature thereto; and
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(h)payment of the fees and Bank Expenses then due as specified in Section 2.7 hereof.
3.2Conditions Precedent to all Credit Extensions.  Bank’s obligations to make each Credit Extension, including the initial Credit Extension, is subject to the following conditions precedent:
(a)timely receipt of the Credit Extension request and any materials and documents required by Section 3.4;
(b)the representations and warranties in this Agreement shall be true, accurate, and complete in all material respects on the date of the proposed Credit Extension and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date or time period shall be true, accurate and complete in all material respects as of such date or with respect to such time period, and no Event of Default shall have occurred and be continuing or result from the Credit Extension.  Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in this Agreement remain true, accurate, and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date or time period shall be true, accurate and complete in all material respects as of such date or with respect to such time period; and
(c)Bank determines in its good faith business judgment that there has not been a Material Adverse Change.
3.3Covenant to Deliver.  Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition precedent to any Credit Extension.  Borrower expressly agrees that a Credit Extension made prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and the making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion.
3.4Procedures for Borrowing.  Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this Agreement, to obtain an Advance, Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail by 12:00 p.m. Pacific time on the Funding Date of the Advance.  Such notice shall be made by Borrower through Bank’s online banking program, provided, however, if Borrower is not utilizing Bank’s online banking program, then such notice shall be in a written format reasonably acceptable to Bank that is executed by an Authorized Signer.  Bank shall have received reasonably satisfactory evidence that the provision of such notices and the requests for Advances have been approved by the Board.  In connection with any such notification, Borrower must promptly deliver to Bank by electronic mail or through Bank’s online banking program such reports and information, including without limitation, sales journals, cash receipts journals, accounts receivable aging reports, as Bank may request in its sole discretion.  Bank shall credit proceeds of an Advance to the Designated Deposit Account.  Bank may make Advances under this Agreement based on instructions from an Authorized Signer or without instructions if the Advances are necessary to meet Obligations which have become due.
4.4CREATION OF SECURITY INTEREST
4.1Grant of Security Interest.  Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof.
Borrower acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank.  Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of 
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Borrower and Bank to have all such Obligations secured by the first priority perfected security interest in the Collateral granted herein (subject only to Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior priority to Bank’s Lien in this Agreement), and by any and all other security agreements, mortgages or other collateral granted to Bank by Borrower as security for the Obligations, now or in the future.
If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash.  Upon payment in full in cash of the Obligations (other than inchoate indemnity obligations) and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall, at the sole cost and expense of Borrower, release its Liens in the Collateral and all rights therein shall revert to Borrower.  In the event (x) all Obligations (other than inchoate indemnity obligations), except for Bank Services, are satisfied in full, and (y) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good faith business judgment for Bank Services, if any.  In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral in an amount equal to (x) if such Letters of Credit are denominated in Dollars, then at least one hundred five percent (105%); and (y) if such Letters of Credit are denominated in a Foreign Currency, then at least one hundred ten percent (110%), of the Dollar Equivalent of the face amount of all such Letters of Credit plus, in each case, all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its business judgment), to secure all of the Obligations relating  to such  Letters of Credit.
4.2Priority of Security Interest.  Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior priority to Bank’s Lien under this Agreement).  If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed by Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank.
4.3Authorization to File Financing Statements.  Borrower hereby authorizes Bank to file financing statements and other similar forms, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code.   Such financing statements and other similar forms may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal or lesser scope, or with greater detail, all in Bank’s discretion.
5REPRESENTATIONS AND WARRANTIES
Borrower represents and warrants as follows: 
5.1Due Organization, Authorization; Power and Authority.  Borrower is duly organized, validly existing and in good standing as a Registered Organization in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any other jurisdiction in which the conduct of its business or its ownership of property and other assets or business which it is engaged in requires that it be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business.  In connection with this Agreement, Borrower has delivered to Bank a completed certificate signed by Borrower, entitled “Perfection Certificate” (the “Perfection Certificate”).  Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized or is incorporated in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office); (e) except as indicated on the Perfection Certificate, Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete (it being 
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understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in this Agreement).  If Borrower is not now a Registered Organization but later becomes one, Borrower shall promptly notify Bank of such occurrence and provide Bank with Borrower’s organizational identification number.
The execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect) filings and registrations contemplated by this Agreement, or (v) conflict with, contravene, constitute a default or breach under, or result in or permit the termination or acceleration of, any material agreement by which Borrower is bound.  Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s business.  
5.2Collateral.  Borrower has good title to, rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens.  Borrower has no Collateral Accounts at or with any bank or financial institution other than Bank or Bank’s Affiliates except for the Collateral Accounts described in the Perfection Certificate delivered to Bank in connection herewith and which Borrower has taken such actions as are necessary to give Bank a perfected security interest therein, pursuant to the terms of Section 6.8(b).  The Accounts are bona fide, existing obligations of the Account Debtors.  
The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate.  None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Section 7.2.
All Inventory is in all material respects of good and marketable quality, free from material defects.
Borrower is the sole owner of the Intellectual Property which it owns or purports to own except for (a) non-exclusive licenses granted to its customers in the ordinary course of business, (b) over-the-counter software that is commercially available to the public, and (c) material Intellectual Property licensed to Borrower and noted on the Perfection Certificate.  Each Patent which it owns or purports to own and which is material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property which Borrower owns or purports to own and which is material to Borrower’s business has been judged invalid or unenforceable, in whole or in part.  To the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party except to the extent such claim would not reasonably be expected to have a material adverse effect on Borrower’s business.
Except as noted on the Perfection Certificate, Borrower is not a party to, nor is it bound by, any Restricted License.
5.3Intentionally Omitted.
5.4Litigation.  Except as noted on the Perfection Certificate delivered by Borrower to Bank on or prior to the Effective Date, there are no actions or proceedings pending or, to the knowledge of any Responsible Officer, threatened in writing by or against Borrower or any of its Subsidiaries involving more than, individually or in the aggregate, Two Hundred Fifty Thousand Dollars ($250,000).
5.5Financial Statements; Financial Condition.  All consolidated financial statements for Borrower and any of its Subsidiaries delivered to Bank by submission to the Financial Statement Repository or otherwise submitted to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s 
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consolidated results of operations.  There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to the Financial Statement Repository or otherwise submitted to Bank. 
5.6Solvency.  The fair salable value of Borrower’s consolidated assets (including goodwill minus disposition costs) exceeds the fair value of Borrower’s liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature.
5.7Regulatory Compliance.  Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended.  Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors).  Borrower (a) has complied in all material respects with all Requirements of Law, and (b) has not violated any Requirements of Law the violation of which could reasonably be expected to have a material adverse effect on its business.  None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally.  Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Governmental Authorities that are necessary to continue their respective businesses as currently conducted.
5.8Subsidiaries; Investments.  Borrower does not own any stock, partnership, or other ownership interest or other equity securities except for equity securities of its Subsidiaries and Permitted Investments.  
5.9Tax Returns and Payments; Pension Contributions.  Borrower has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except to the extent such taxes are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made therefor. 
To the extent Borrower defers payment of any contested taxes, Borrower shall (i) notify Bank in writing of the commencement of, and any material development in, the proceedings, and (ii) post bonds or take any other steps required to prevent the Governmental Authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien.”  Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could reasonably be expected to result in additional taxes becoming due and payable by Borrower in excess of Twenty-Five Thousand Dollars ($25,000).  Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.
5.10Use of Proceeds.  Borrower shall use the proceeds of the Credit Extensions solely as working capital and to fund its general business requirements and not for personal, family, household or agricultural purposes.
5.11Full Disclosure.  No written representation, warranty or other written statement of Borrower in any report, certificate, or written statement submitted to the Financial Statement Repository or otherwise submitted to Bank, as of the date such representation, warranty, or other written statement was made, taken together with all such written reports, written certificates and written statements submitted to the Financial Statement Repository or otherwise submitted to Bank, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the reports, certificates, or written statements not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon 
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reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 
5.12Definition of “Knowledge.”  For purposes of the Loan Documents, whenever a representation or warranty is made to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of any Responsible Officer.
6AFFIRMATIVE COVENANTS
Until such time as all Obligations are satisfied in full, Bank has no further obligation to make Credit Extensions to Borrower and this Agreement is terminated, Borrower shall do all of the following:
6.1.Government Compliance.
(a)Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations.  Borrower shall comply, and have each Subsidiary comply, in all material respects, with all material laws, ordinances and regulations to which it is subject.
(b)Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to which it is a party and the grant of a security interest to Bank in all of its property.  Borrower shall promptly provide copies of any such obtained Governmental Approvals to Bank.
6.2.Financial Statements, Reports, Certificates.  Provide Bank with the following by submitting to the Financial Statement Repository or otherwise submitting to Bank: 
(a)within thirty (30) days after the end of each month a transaction report (and any schedules related thereto and including any other information requested by Bank with respect to Borrower’s Accounts); 
(b)within thirty (30) days after the end of each month, (A) monthly accounts receivable agings, aged by invoice date, (B) monthly accounts payable agings, aged by invoice date, and outstanding or held check registers, if any, and (C) monthly reconciliations of accounts receivable agings (aged by invoice date), and general ledger;
(c)as soon as available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated and consolidating balance sheet and income statement covering Borrower’s and each of its Subsidiary’s operations for such month, in a form reasonably acceptable to Bank (the “Monthly Financial Statements”);
(d)within thirty (30) days after the last day of each month and together with the Monthly Financial Statements, a completed Compliance Statement, confirming that, as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Bank may reasonably request, including, without limitation, a statement that at the end of such month there were no held checks; 
(e)as soon as available, but no later than the earlier of (i) thirty (30) days after the end of each fiscal year of Borrower or (ii) seven (7) days of approval of the same by Borrower’s Board, and within seven (7) days of any updates or amendments thereto, (A) annual operating budgets (including income statements, balance sheets and cash flow statements, by month) for the then-current fiscal year of Borrower, and (B) annual financial projections for then-current fiscal year (on a monthly or quarterly basis), in each case as approved by the Board, together with any related business forecasts used in the preparation of such annual financial projections;
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(f)as soon as available, and in any event within one hundred eighty (180) days following the end of Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion (provided that such opinion may contain a “going concern” qualification solely with respect to Borrower’s liquidity typical for venture-backed companies similar to Borrower)  on the financial statements from an independent certified public accounting firm reasonably acceptable to Bank (the “Annual Financial Statements”); provided however, if the Board does not require audited Annual Financial Statements for any fiscal year, then Borrower shall instead deliver CPA reviewed Annual Financial Statements for such fiscal year only;
(g)in the event that Borrower becomes subject to the reporting requirements under the Exchange Act, then within five (5) days of filing, copies of all periodic and other reports, proxy statements and other materials filed by Borrower and/or any Guarantor with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be.  Documents required to be delivered pursuant to the terms hereof (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower posts such documents, or provides a link thereto, on Borrower’s website on the internet at Borrower’s website address; provided, however, Borrower shall promptly notify Bank in writing (which may be by electronic mail) of the posting of any such documents;
(h)annually, within thirty (30) days after approval by Borrower’s Board of Directors, any 409(A) valuation report prepared to establish the fair market value of Borrower’s Common Stock;
(i)prompt report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, Two Hundred Fifty Thousand Dollars ($250,000) or more, and upon Bank’s reasonable request, provide updates regarding the status thereof;  
(j)promptly, from time to time, such other information regarding Borrower or compliance with the terms of any Loan Documents as reasonably requested by Bank;
(k)prompt written notice of any changes to the beneficial ownership information set out in Section 13 of the Perfection Certificate delivered to Bank on or about the Third Amendment Effective Date.  Borrower understands and acknowledges that Bank relies on such true, accurate and up-to-date beneficial ownership information to meet Bank’s regulatory obligations to obtain, verify and record information about the beneficial owners of its legal entity customers. 
Any submission by Borrower of a Compliance Statement to the Financial Statement Repository pursuant to this Section 6.2 or otherwise submitted to Bank shall be deemed to be a representation by Borrower that (i) as of the date of such Compliance Statement, the information and calculations set forth therein are true, accurate and correct in all material respects, (ii) as of the end of the compliance period set forth in such submission, Borrower is in compliance in all material respects with all required covenants except as noted in such Compliance Statement, (iii) as of the date of such submission, no Events of Default have occurred or are continuing, (iv) all representations and warranties other than any representations or warranties that are made as of a specific date in Section 5 remain true and correct in all material respects as of the date of such submission except as noted in such Compliance Statement, (v) as of the date of such submission, Borrower and each of its Subsidiaries has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9, and (vi) as of the date of such submission, no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. 
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6.3.Accounts Receivable.
(a)Schedules and Documents Relating to Accounts.  Borrower shall deliver to Bank transaction reports and schedules of collections, as provided in Section 6.2, on Bank’s standard forms; provided, however, that Borrower’s failure to execute and deliver the same shall not affect or limit Bank’s Lien and other rights in all of Borrower’s Accounts, nor shall Bank’s failure to advance or lend against a specific Account affect or limit Bank’s Lien and other rights therein.  If requested by Bank, Borrower shall furnish Bank with copies (or, at Bank’s request, originals) of all contracts, orders, invoices, and other similar documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts.  In addition, Borrower shall deliver to Bank, on its request, the originals of all instruments, chattel paper, security agreements, guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all necessary indorsements, and copies of all credit memos.
(b)Disputes.  Borrower shall promptly notify Bank of all disputes or claims relating to Accounts.  Borrower may forgive (completely or partially), compromise, or settle any Account for less than payment in full, or agree to do any of the foregoing so long as (i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course of business, in arm’s-length transactions, and reports the same to Bank in the regular reports provided to Bank; (ii) no Event of Default has occurred and is continuing; and (iii) after taking into account all such discounts, settlements and forgiveness, the total outstanding Advances will not exceed the Revolving Line minus, (A) the outstanding principal balance of any Advances, minus (B) the aggregate Dollar Equivalent of the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), minus (C) all amounts outstanding under the Cash Management Sublimit.
(c)Collection of Accounts.  Borrower shall direct Account Debtors to deliver or transmit all proceeds of Accounts into a lockbox account, or via electronic deposit capture or such other “blocked account” as specified by Bank (either such account, the “Cash Collateral Account”).  Whether or not an Event of Default has occurred and is continuing, Borrower shall immediately deliver all payments on and proceeds of Accounts to the Cash Collateral Account.  Subject to Bank’s right to maintain a reserve pursuant to Section 6.3(d),so long as no Event of Default has occurred and is continuing, all amounts received in the Cash Collateral Account shall be transferred on a daily basis to Borrower’s operating account with Bank.  Borrower hereby authorizes Bank to transfer to the Cash Collateral Account any amounts that Bank reasonably determines are proceeds of the Accounts (provided that Bank is under no obligation to do so and this allowance shall in no event relieve Borrower of its obligations hereunder). 
(d)Reserves.  Notwithstanding any terms in this Agreement to the contrary, at times when an Event of Default exists, Bank may hold any proceeds of the Accounts and any amounts in the Cash Collateral Account as a reserve to be applied to any Obligations regardless of whether such Obligations are then due and payable.
(e)Returns.  Provided no Event of Default has occurred and is continuing, if any Account Debtor returns any Inventory to Borrower, Borrower shall promptly (i) determine the reason for such return, (ii) issue a credit memorandum to the Account Debtor in the appropriate amount, and (iii) provide a copy of such credit memorandum to Bank, upon request from Bank.  In the event any attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold the returned Inventory in trust for Bank, and immediately notify Bank of the return of the Inventory.
(f)Verifications; Confirmations; Credit Quality; Notifications.  Bank may, from time to time, (i) verify and confirm directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, either in the name of Borrower or Bank or such other name as Bank may choose, and notify any Account Debtor of Bank’s security interest in such Account and/or (ii) conduct a credit check of any Account Debtor to approve any such Account Debtor’s credit.
(g)No Liability.  Bank shall not be responsible or liable for any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for 
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any error, act, omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect any Account, or for settling any Account in good faith for less than the full amount thereof, nor shall Bank be deemed to be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an Account.  Nothing herein shall, however, relieve Bank from liability for its own gross negligence or willful misconduct.
6.4.Remittance of Proceeds.  Deliver, in kind, all proceeds arising from the disposition of any Collateral to Bank in the original form in which received by Borrower not later than the following Business Day after receipt by Borrower, to be applied to the Obligations (a) prior to an Event of Default, pursuant to the terms of Section 6.3(c) hereof, and (b) after the occurrence and during the continuance of an Event of Default, pursuant to the terms of Section 9.4 hereof; provided that, if no Event of Default has occurred and is continuing, Borrower shall not be obligated to remit to Bank the proceeds of the sale of worn out or obsolete Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate purchase price of One Hundred Fifty Thousand Dollars ($150,000) or less (for all such transactions in any fiscal year).  Borrower agrees that it will not commingle proceeds of Collateral with any of Borrower’s other funds or property, but will hold such proceeds separate and apart from such other funds and property and in an express trust for Bank.  Nothing in this Section 6.4 limits the restrictions on disposition of Collateral set forth elsewhere in this Agreement.
6.5.Taxes; Pensions.  Timely file, and require each of its Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.9 hereof, and taxes not in excess of Fifty Thousand Dollars ($50,000) in the aggregate, and shall deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms.
6.6.Access to Collateral; Books and Records.  At reasonable times, on five (5) Business Days’  notice (provided no notice is required if an Event of Default has occurred and is continuing), Bank, or its agents, shall have the right to inspect the Collateral and the right to audit and copy Borrower’s Books.  The foregoing inspections and audits shall be conducted no more often than once every twelve (12) months (or more frequently as Bank in its sole discretion determines that conditions warrant, but in no event more than two (2) times per year) unless an Event of Default has occurred and is continuing in which case such inspections and audits shall occur as often as Bank shall reasonably determine is necessary.  The foregoing inspections and audits shall be conducted at Borrower’s expense and the charge therefor shall be One Thousand Dollars ($1,000) per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus reasonable documented out-of-pocket expenses.  In the event Borrower and Bank schedule an audit more than ten (10) days in advance, and Borrower cancels or seeks to or reschedules the audit with less than ten (10) days’ written notice to Bank, then (without limiting any of Bank’s rights or remedies) Borrower shall pay Bank a fee of One Thousand Dollars ($1,000) plus any documented out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling.
6.7.Insurance.
(a)Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and as Bank may reasonably request.  Insurance policies shall be in a form, with financially sound and reputable insurance companies that are not Affiliates of Borrower, and in amounts that are reasonably satisfactory to Bank.  All property policies shall have a lender’s loss payable endorsement showing Bank as lender loss payee.  All liability policies shall show, or have endorsements showing, Bank as an additional insured.  Bank shall be named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect of any Collateral. 
(b)Ensure that proceeds payable under any property policy are, at Bank’s option, payable to Bank on account of the Obligations.
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(c)At Bank’s request, Borrower shall deliver certified copies of insurance policies and evidence of all premium payments.  Each provider of any such insurance required under this Section 6.7 shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to Bank, that it will give Bank twenty (20) days (ten (10) days for non-payment of premium) prior written notice before any such policy or policies shall be materially altered or canceled.  If Borrower fails to obtain insurance as required under this Section 6.7 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.7, and take any action under the policies Bank deems prudent.
6.8.Accounts.
(a)Maintain its and all of its Subsidiaries’ primary US operating and other US deposit accounts, and the Cash Collateral Account with Bank and Bank’s Affiliates which shall at all times contain at least eighty-five percent (85%) of the aggregate amount of Borrower’s cash and cash equivalents at all financial institutions worldwide.  Any Guarantor shall maintain all depository and operating accounts with Bank and Bank’s Affiliates.  
(b)In addition, Bank shall be the primary provider of Bank Services to Borrower, including but not limited to, business credit cards, Letters of Credit, and FX Contracts. 
(c)In addition to and without limiting the restrictions in (a), Borrower shall provide Bank five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than Bank or Bank’s Affiliates. For each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Bank.  The provisions of the previous sentence shall not apply to (i) subject to the requirements set forth in Section 6.8(a) above, accounts maintained by a Foreign Subsidiary of Borrower outside of the United States with financial institutions other than Bank, (ii) deposit accounts exclusively used for payroll, payroll taxes, and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such or (iii) subject to the requirements set forth in Section 6.8(a) above, payment processing accounts.
6.9.Financial Covenants.  
(a)Minimum Adjusted EBITDA.  Borrower shall achieve Adjusted EBITDA (measured on a trailing twelve (12) month basis) of at least the amounts set forth in the table below for the corresponding measuring periods (tested as of the last day of each calendar quarter): 
						
	Measuring Period Ending	Minimum Adjusted EBITDA
	June 30, 2020	$10,000,000
	September 30, 2020	$10,000,000
	December 31, 2020	$10,000,000
	March 31, 2021	$0
	June 30, 2021	$0
	September 30, 2021	$5,000,000
	December 31, 2021 and for each calendar quarter thereafter	$10,000,000

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(b)Minimum Liquidity.  Borrower shall maintain, at all times, subject to periodic reporting as of the last day of each month, Liquidity of not less than Ten Million Dollars ($10,000,000).
6.10.Protection of Intellectual Property Rights.
(a)(i) Use all commercially reasonable efforts necessary to protect, defend and maintain the validity and enforceability of its Intellectual Property with any material value to Borrower’s business;  (ii) promptly advise Bank in writing of material infringements or any other event that could reasonably be expected to materially and adversely affect the value of its Intellectual Property with any material value to Borrower’s business;  and (iii) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Bank’s written consent.
(b)Provide written notice to Bank within fifteen (15) days after entering or becoming bound by any Restricted License (other than over-the-counter software that is commercially available to the public).  Borrower shall take such commercially reasonable steps as Bank requests to attempt to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted License to be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Bank to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Bank’s rights and remedies under this Agreement and the other Loan Documents.
6.11.Litigation Cooperation.  From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower.  All Confidential Information obtained by Bank during or as a result of such activities shall be governed by Section 12.9.
6.12.Online Banking.  Utilize Bank’s online banking platform for all matters requested by Bank which shall include, without limitation (and without request by Bank for the following matters), uploading information pertaining to Accounts and Account Debtors, requesting approval for exceptions, requesting Credit Extensions, and uploading financial statements and other reports required to be delivered by this Agreement (including, without limitation, those described in Section 6.2 of this Agreement).
6.13.Formation or Acquisition of Subsidiaries.  Notwithstanding and without limiting the negative covenants contained in Sections 7.3 and 7.7 hereof, promptly following the date that Borrower or any Guarantor forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Effective Date (including, without limitation, pursuant to a Division), Borrower and such Guarantor shall, upon Bank’s request in its sole but reasonable discretion, (a) cause any such new Domestic Subsidiary to provide to Bank a joinder to this Agreement to become a Co-Borrower hereunder or a Guaranty to become a Guarantor hereunder, together with such appropriate financing statements and/or Control Agreements, all in form and substance reasonably satisfactory to Bank (including being sufficient to grant Bank a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Domestic Subsidiary), (b) provide to Bank appropriate certificates and powers and financing statements, pledging (i) all of the direct or beneficial ownership interest in such new Domestic Subsidiary, and (ii) sixty-five percent (65%) of the beneficial ownership interest in such new Foreign Subsidiary, each in form and substance reasonably satisfactory to Bank; and (c) provide to Bank all other documentation in form and substance reasonably satisfactory to Bank, if requested by Bank in its sole but reasonable discretion, including one or more opinions of counsel reasonably satisfactory to Bank, which in its reasonable opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above.  Any document, agreement, or instrument executed or issued pursuant to this Section 6.13 shall be a Loan Document.
6.14.Further Assurances.  Execute any further instruments and take further action as Bank reasonably requests to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement.  Deliver to Bank, within five (5) days after the same are sent or received, copies of all correspondence, reports, documents and 
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other filings with any Governmental Authority regarding compliance with or maintenance of Governmental Approvals or Requirements of Law or that could reasonably be expected to have a material effect on any of the Governmental Approvals or otherwise on the operations of Borrower or any of its Subsidiaries.
6.15.Subsidiary Assets. At no time shall the aggregate value of assets (excluding any right of use assets relating to a lease agreement) held at all of Borrower’s Subsidiaries that are not Co-Borrowers or Guarantors hereunder exceed Ten Million Dollars ($10,000,000). 
7NEGATIVE COVENANTS
Borrower shall not do any of the following without Bank’s prior written consent:
7.1Dispositions.  Convey, sell, lease, transfer, assign, or otherwise dispose of (including, without limitation, pursuant to a Division) (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out, fully-depreciated or obsolete Equipment that is, in the reasonable judgment of Borrower, no longer economically practicable to maintain or useful in the ordinary course of business of Borrower; (c) consisting of Permitted Liens and Permitted Investments; (d) consisting of the sale or issuance of any stock of Borrower permitted under Section 7.2 of this Agreement; (e) consisting of Borrower’s use or transfer of money or Cash Equivalents in the ordinary course of its business for the payment of ordinary course business expenses in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents; and (f) of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business and licenses that could not result in a legal transfer of title of the licensed property but that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States.
7.2Changes in Business, Management, Control, or Business Locations.  (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve; (c) fail to provide notice to Bank of any Key Person departing from or ceasing to be employed by Borrower within five (5) days after his or her departure from Borrower; or (d) permit or suffer any Change in Control.
Borrower shall not, without at least thirty (30) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than Five Hundred Thousand Dollars ($500,000) in Borrower’s assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate, in excess of Five Hundred Thousand Dollars ($500,000) to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate, (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization.  In respect of clause (1) above, Borrower has notified Bank that it intends to acquire additional office space in Tempe, Arizona and is obtaining a larger office space in Israel.  If Borrower intends to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of Five Hundred Thousand Dollars ($500,000)  to a bailee, and Bank and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower will first receive the written consent of Bank, and such bailee shall execute and deliver a bailee agreement in form and substance reasonably satisfactory to Bank.
7.3Mergers or Acquisitions.  Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person (including, without limitation, by the formation of any Subsidiary or pursuant to a Division) except for Permitted Acquisitions.  A Subsidiary may merge or consolidate into another Subsidiary or into Borrower.
7.4Indebtedness.  Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.
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7.5Encumbrance.  Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject to the first priority security interest granted herein, or enter into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except (i) customary restrictions on assignment in any license agreement where Borrower or Subsidiary is the licensee (and not the licensor) and (ii) as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein.
7.6Maintenance of Collateral Accounts.  Maintain any Collateral Account except pursuant to the terms of Section 6.8(b) hereof.
7.7Distributions; Investments.  (a) Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock, provided that Borrower may (i) convert any of its convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange thereof, (ii)  pay dividends solely in common stock; and (iii) repurchase the stock of former employees or consultants pursuant to stock repurchase agreements so long as an Event of Default does not exist at the time of any such repurchase and would not exist after giving effect to any such repurchase, provided that the aggregate amount of all such repurchases does not exceed Five Hundred Thousand Dollars ($500,000) per fiscal year; or (b) directly or indirectly make any Investment (including, without limitation, by the formation of any Subsidiary) other than Permitted Investments, or permit any of its Subsidiaries to do so.
7.8Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower’s business or as otherwise permitted by this Agreement, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person.
7.9Subordinated Debt.  (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof, provide for earlier or greater principal, interest, or other payments thereon, or adversely affect the subordination thereof to Obligations owed to Bank.
7.10Compliance.  Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to (a) meet the minimum funding requirements of ERISA, (b) prevent a Reportable Event or Prohibited Transaction, as defined in ERISA, from occurring, or (c) comply with the Federal Fair Labor Standards Act, or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
8EVENTS OF DEFAULT
Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:
8.1Payment Default.  Borrower fails to (a) make any payment of principal or interest on any Credit Extension when due, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due 
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and payable (which three (3) Business Day cure period shall not apply to payments due on the Revolving Line Maturity Date).  During the cure period, the failure to make or pay any payment specified under clause (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period);
8.2Covenant Default.
(a)Borrower fails or neglects to perform any obligation in Sections 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.10, 6.12, 6.13, 6.14, or 6.15 or violates any covenant in Section 7; or
(b)Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period).  Cure periods provided under this section shall not apply, among other things, to financial covenants or any other covenants set forth in clause (a) above;
8.3Intentionally Omitted. 
8.4Attachment; Levy; Restraint on Business.
(a)(i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under the control of Borrower (including a Subsidiary), or (ii) a notice of lien or levy is filed against any of Borrower’s assets by any Governmental Authority, and the same under subclauses (i) and (ii) hereof are not, within ten (10) Business Days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; or 
(b)(i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting all or any material part of its business;
8.5Insolvency.  (a) Borrower or any of its Subsidiaries is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower or any of its Subsidiaries begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower or any of its Subsidiaries and is not dismissed or stayed within thirty (30) days (but no Credit Extensions shall be made while any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed);
8.6Other Agreements.  There is, under any agreement to which Borrower or any Guarantor is a party with a third party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of Two Hundred Fifty Thousand Dollars ($250,000); or (b) any breach or default by Borrower or Guarantor, the result of which could reasonably be expected to have a material adverse effect on Borrower’s or any Guarantor’s business;
8.7Judgments; Penalties.  One or more fines, penalties or final judgments, orders or decrees for the payment of money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower by any Governmental Authority, and the same are not, within ten (10) days after the entry, assessment or issuance thereof, discharged, satisfied, or paid, or after execution thereof, stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration of any such stay 
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(provided that no Credit Extensions will be made prior to the satisfaction, payment, discharge, stay, or bonding of such fine, penalty, judgment, order or decree);
8.8Misrepresentations.  Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made;
8.9Subordinated Debt.  Any document, instrument, or agreement evidencing any Subordinated Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that it has any further liability or obligation thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement or any applicable subordination or intercreditor agreement;
8.10Guaranty.  (a) Any guaranty of any Obligations terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance described in Sections 8.3, 8.4, 8.5, 8.6, 8.7, or 8.8 of this Agreement occurs with respect to any Guarantor, (d) the death, liquidation, winding up, or termination of existence of any Guarantor; or (e) (i) a material impairment in the perfection or priority of Bank’s Lien in the collateral provided by Guarantor or in the value of such collateral or (ii) a material adverse change in the general affairs, management, results of operation, condition (financial or otherwise) or the prospect of repayment of the Obligations occurs with respect to any Guarantor; or
8.11Governmental Approvals.  Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could reasonably be expected to result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal (i) causes, or could reasonably be expected to cause, a Material Adverse Change, or (ii) adversely affects in a material way the legal qualifications of Borrower or any of its Subsidiaries to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower or any of its Subsidiaries to hold any Governmental Approval in any other jurisdiction.
9BANK’S RIGHTS AND REMEDIES
9.1Rights and Remedies.  Upon the occurrence and during the continuance of an Event of Default, Bank may, without notice or demand, do any or all of the following:
(a)declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank);
(b)stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Bank;
(c)demand that Borrower (i) deposit cash with Bank in an amount equal to at least (A) one hundred five percent (105%) of the Dollar Equivalent of the aggregate face amount of all Letters of Credit denominated in Dollars remaining undrawn, and (B) one hundred ten percent (110%) of the Dollar Equivalent of the aggregate face amount of all Letters of Credit denominated in a Foreign Currency remaining undrawn (plus, in each case, all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining 
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term of any Letters of Credit; provided that Bank shall promptly return to Borrower each such cash deposit if and when the related Letter of Credit terminates without being drawn upon if the same is not renewed at Bank;
(d)terminate any FX Contracts;
(e)verify the amount of, demand payment of and performance under, and collect any Accounts and General Intangibles, settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, and notify any Person owing Borrower money of Bank’s security interest in such funds.  Borrower shall collect all payments in trust for Bank and, if requested by Bank, immediately deliver the payments to Bank in the form received from the Account Debtor, with proper endorsements for deposit;
(f)make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral.  Borrower shall assemble the Collateral if Bank requests and make it available as Bank reasonably designates.  Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies;
(g)apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) amount held by Bank owing to or for the credit or the account of Borrower;
(h)ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral.  Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents, Copyrights, mask works, rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section 9.1, Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit;
(i)place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral;
(j)demand and receive possession of Borrower’s Books; and
(k)exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof).
9.2Power of Attorney.  Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable following the occurrence of an Event of Default, to:  (a) endorse Borrower’s name on any checks, payment instruments, or other forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) demand, collect, sue, and give releases to any Account Debtor for monies due, settle and adjust disputes and claims about the Accounts directly with Account Debtors, and compromise, prosecute, or defend any action, claim, case, or proceeding about any Collateral (including filing a claim or voting a claim in any bankruptcy case in Bank’s or Borrower’s name, as Bank chooses) for amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, or other claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third party as the Code permits.  Borrower hereby appoints Bank as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Bank’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full and the Loan Documents have been terminated.  Bank’s foregoing appointment as Borrower’s 
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attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and the Loan Documents have been terminated.
9.3Protective Payments.  If Borrower fails to obtain the insurance called for by Section 6.7 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document or which may be required to preserve the Collateral, Bank may obtain such insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral.  Bank will make reasonable efforts to provide Borrower with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter.  No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default.
9.4Application of Payments and Proceeds.  Bank shall have the right to apply in any order any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations.  Bank shall pay any surplus to Borrower by credit to the Designated Deposit Account or to other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency.  If Bank, directly or indirectly, enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor.
9.5Bank’s Liability for Collateral.  So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person.  Borrower bears all risk of loss, damage or destruction of the Collateral.
9.6No Waiver; Remedies Cumulative.  Bank’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith.  No waiver hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the specific instance and purpose for which it is given.  Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative.  Bank has all rights and remedies provided under the Code, by law, or in equity.  Bank’s exercise of one right or remedy is not an election and shall not preclude Bank from exercising any other remedy under this Agreement or other remedy available at law or in equity, and Bank’s waiver of any Event of Default is not a continuing waiver.  Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence.
9.7Demand Waiver.  Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable.
10NOTICES
All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below.  
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Bank or Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10. 
						
	If to Borrower:	ZIPRECRUITER, INC.
		604 Arizona Ave
		Santa Monica, CA 90401
		Attn:  Ian Siegel, CEO
		Email: legal@ziprecruiter.com 
		
	With a copy (which	
	shall not constitute	
	notice) to:	FENWICK & WEST LLP
		Attn: Steven Levine, Esq.
		801 California St.
		Mountain View, CA 94041
		Telephone: (650) 988-8500
		Email: slevine@fenwick.com 
		
	If to Bank:	SILICON VALLEY BANK
		1901 Main Street, 3rd Floor
		Santa Monica, CA 90405
		Attn:  Chris Lee – Director 
		Fax:  (310) 664-5856
		Email:  chrlee@svb.com

11CHOICE OF LAW, VENUE, JURY TRIAL WAIVER AND JUDICIAL REFERENCE
Except as otherwise expressly provided in any of the Loan Documents, California law governs the Loan Documents without regard to principles of conflicts of law.  Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank.  Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court.  Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid.
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT.  EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.
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WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court.  The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure Sections 638 through 645.1, inclusive.  The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers.  All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed.  If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief.  The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings.  The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings.  The private judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial proceedings in the same manner as a trial court judge.  The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to California Code of Civil Procedure Section 644(a).  Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies.  The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph.
This Section 11 shall survive the termination of this Agreement.
12.GENERAL PROVISIONS
12.1Termination Prior to Maturity Date; Survival.  This Agreement and Bank’s Lien on the Collateral shall terminate when all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been paid in full in cash and Bank has no commitment to make any Credit Extensions under this Agreement.  All covenants, representations and warranties made in this Agreement shall continue in full force until this Agreement has terminated pursuant to its terms and all Obligations have been satisfied.  So long as Borrower has satisfied the Obligations (other than inchoate indemnity obligations, and any other obligations which, by their terms, are to survive the termination of this Agreement, and any Obligations under Bank Services Agreements that are cash collateralized in accordance with Section 4.1 of this Agreement), this Agreement may be terminated prior to the Revolving Line Maturity Date by Borrower, effective three (3) Business Days after written notice of termination is given to Bank.  Those obligations that are expressly specified in this Agreement as surviving this Agreement’s termination shall continue to survive notwithstanding this Agreement’s termination. 
12.2Successors and Assigns.  This Agreement binds and is for the benefit of the successors and permitted assigns of each party.  Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion).  Bank has the right, without the consent of or notice to Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents.
12.3Indemnification.  Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against:  (i) all obligations, demands, claims, and liabilities (collectively, “Claims”) claimed or asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (ii) all losses or expenses (including Bank Expenses) in any way suffered, incurred, or paid by such Indemnified Person as 
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a result of, following from, consequential to, or arising from transactions between Bank and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or willful misconduct.
This Section 12.3 shall survive until all statutes of limitation with respect to the Claims, losses, and expenses for which indemnity is given shall have run.
12.4Time of Essence.  Time is of the essence for the performance of all Obligations in this Agreement.
12.5Severability of Provisions.  Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision.
12.6Correction of Loan Documents.  Bank may correct patent errors and fill in any blanks in the Loan Documents consistent with the agreement of the parties.
12.7Amendments in Writing; Waiver; Integration.  No purported amendment or modification of any Loan Document, or waiver, discharge or termination of any obligation under any Loan Document, or release, or consent to the transfer of, any Collateral shall be enforceable or admissible unless, and only to the extent, expressly set forth in a writing signed by the party against which enforcement or admission is sought.  Without limiting the generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document.  Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver.  The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of the Loan Documents merge into the Loan Documents.
12.8Counterparts.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.
12.9Confidentiality.  In handling any confidential information, Bank shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and Affiliates, together with Bank, collectively, “Bank Entities”) solely in connection with their business with Borrower; (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use its best efforts to obtain any prospective transferee’s or purchaser’s agreement to the terms of this provision prior to disclosure thereof or such prospective transferee or purchaser shall have executed a confidentiality agreement with Bank with terms no less restrictive than those contained herein); (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; (e) as Bank considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service providers have executed a confidentiality agreement with Bank with terms no less restrictive than those contained herein.  Confidential information does not include information that is either: (i) in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain (other than as a result of its disclosure by Bank in violation of this Agreement) after disclosure to Bank; or (ii) disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information.
Bank Entities may use confidential information for the development of databases, reporting purposes, and market analysis so long as such confidential information is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower.  The provisions of the immediately preceding sentence shall survive the termination of this Agreement.
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12.10Attorneys’ Fees, Costs and Expenses.  In any action or proceeding between Borrower and Bank arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled.
12.11Electronic Execution of Documents.  The words “execution,” “signed,” “signature” and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act.
12.12Right of Setoff.   Borrower hereby grants to Bank a Lien and a right of setoff as security for all Obligations to Bank, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any entity under the control of Bank (including a subsidiary of Bank) or in transit to any of them.  At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Bank may setoff the same or any part thereof and apply the same to any liability or Obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations.  ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.
12.13Captions.  The headings used in this Agreement are for convenience only and shall not affect the interpretation of this Agreement.
12.14Construction of Agreement.  The parties mutually acknowledge that they and their attorneys have participated in the preparation and negotiation of this Agreement.  In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist.
12.15Relationship.  The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement.  The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract.
12.16Third Parties.  Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights or remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any person not an express party to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement.
12.17Effect of Amendment and Restatement.  This Agreement is intended to and does completely amend and restate, without novation, the Original Agreement.  All security interests granted by Borrower under the Original Agreement are hereby confirmed and ratified and shall continue to secure all Obligations under this Agreement. Without limiting the foregoing, any warrant(s) and all other loan documents issued in connection with the Original Agreement (to the extent not yet exercised, terminated or amended and restated in connection with this Agreement) remain in full force and effect.
12.18Waiver.  Bank hereby waives filing any legal action or instituting or enforcing any rights and remedies it may have against Borrower with respect to an Event of Default (as such term is defined in the Original Agreement) arising under the Original Agreement, through the Effective Date, including, but not limited to, for Borrower’s failure to reset the minimum revenue covenant levels on or prior to June 30, 2020.  Hereinafter, Bank waives the occurrence of any Event of Default arising under the Original Agreement and Borrower shall be in compliance with all provisions of this Agreement.  Bank’s agreement to waive the foregoing default (a) in no way shall be deemed an agreement by Bank to waive Borrower’s compliance with this Agreement as of any other date, and (b) shall not limit or impair the Bank’s right to demand strict performance of this Agreement.
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13DEFINITIONS
13.1Definitions.  As used in the Loan Documents, the word “shall” is mandatory, the word “may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and numbers denoting amounts that are set off in brackets are negative.  As used in this Agreement, the following capitalized terms have the following meanings:
“Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower.
“Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.
“Acquisition” means a transaction pursuant to which a third-party agrees to purchase all or substantially all of the equity interests or assets of Borrower where all Obligations are repaid in full. 
“Adjusted EBITDA” shall mean the following: (a) Net Income, plus (b) Interest Expense, plus (c) to the extent deducted in the calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense, plus (e) non-cash stock based compensation, plus (f) one-time cash restructuring charges, including, without limitation, any costs and expenses relating to cost saving initiatives, operating expense reductions, and severance costs in an amount not to exceed Two Million Dollars ($2,000,000), plus or minus (g) changes in Deferred Revenue, minus (h) any increase in capitalized software costs. 
“Advance” or “Advances” means a revolving credit loan (or revolving credit loans) under the Revolving Line.
“Affiliate” is, with respect to any Person, each other Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members.
“Agreement” is defined in the preamble hereof.
“Annual Financial Statements” is defined in Section 6.2(f).
“Authorized Signer” is any individual listed in Borrower’s Borrowing Resolution who is authorized to execute the Loan Documents, including making (and executing if applicable) any Credit Extension request, on behalf of Borrower.
“Availability Amount” is (a) the Revolving Line, minus (b) the aggregate Dollar Equivalent amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserve, minus (c) any amounts used for Cash Management Services, and minus (d) the outstanding principal balance of any Advances. 
“Bank” is defined in the preamble hereof.
“Bank Entities” is defined in Section 12.9. 
“Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower or any Guarantor.
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“Bank Services”  are any products, credit services, and/or financial accommodations previously, now, or hereafter provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a “Bank Services Agreement”) and shall include, without limitation, any Letters of Credit and Cash Management Services. 
“Bank Services Agreement” is defined in the definition of Bank Services.
“Board” is Borrower’s board of directors.
“Borrower” is defined in the preamble hereof.
“Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.
“Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s board of directors (and, if required under the terms of such Person’s Operating Documents, stockholders) and delivered by such Person to Bank approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its secretary on behalf of such Person certifying (a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that set forth as a part of or attached as an exhibit to such certificate is a true, correct, and complete copy of the resolutions then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents, including making (and executing if applicable) any Credit Extension request, on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (d) that Bank may conclusively rely on such certificate unless and until such Person shall have delivered to Bank a further certificate canceling or amending such prior certificate.
“Business Day” is any day that is not a Saturday, Sunday or a day on which Bank is closed. 
“Cash Collateral Account” is defined in Section 6.3(c).
“Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having a rating of at least “investment grade” or “A” by Moody’s or any successor rating agency; (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money market funds at least ninety-five percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition.
“Cash Management Services” is defined in Section 2.4.
“Cash Management Sublimit” means a sublimit under the Revolving Line for Cash Management Services in an aggregate amount not to exceed Five Million Dollars ($5,000,000).
“Change in Control” means (a) at any time, any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) (other than Institutional Venture Partners XIV, L.P), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)5 under the Exchange Act), directly or indirectly, of forty-nine percent (49%) or more of the ordinary voting power for the election of directors of Borrower (determined on a fully diluted basis) other than by the sale of Borrower’s equity securities in a public offering or to venture capital or private equity investors so long as Borrower identifies to Bank the venture capital or private equity investors at least seven (7) Business Days prior 
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to the closing of the transaction and provides to Bank a description of the material terms of the transaction; (b) during any period of twelve (12) consecutive months, a majority of the members of the board of directors or other equivalent governing body of Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; (c) Institutional Venture Partners XIV, L.P ceases to own at least seven and one half of one percent (7.5%) of the voting securities of Borrower or (d) at any time, Borrower shall cease to own and control, of record and beneficially, directly or indirectly, one hundred percent (100%) of each class of outstanding capital stock of each subsidiary of Borrower free and clear of all Liens (except Liens created by this Agreement).
“Claims” is defined in Section 12.3.
“Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions.
“Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A.
“Collateral Account” is any Deposit Account, Securities Account, or Commodity Account.
“Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be made.
“Compliance Statement” is that certain statement in the form attached hereto as Exhibit B. 
“Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly guaranteed, endorsed, co made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business.  The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.
“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account.
“Copyrights” are any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.
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“Credit Extension” is any Advance, Overadvance, Letter of Credit, amount utilized for Cash Management Services, or any other extension of credit by Bank for Borrower’s benefit.
“Default Rate” is defined in Section 2.6(b).
“Deferred Revenue” is all amounts received or invoiced in advance of performance under contracts and not yet recognized as revenue.
“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.
“Designated Deposit Account” is the account number ending XXXXXX5649 maintained by Borrower with Bank (provided, however, if no such account number is included, then the Designated Deposit Account shall be any deposit account of Borrower maintained with Bank as chosen by Bank).
“Division” means, in reference to any Person which is an entity, the division of such Person into two (2) or more separate Persons, with the dividing Person either continuing or terminating its existence as part of such division, including, without limitation, as contemplated under Section 18-217 of the Delaware Limited Liability Company Act for limited liability companies formed under Delaware law, or any analogous action taken pursuant to any other applicable law with respect to any corporation, limited liability company, partnership or other entity.
“Dollars,” “dollars” or use of the sign “$” means only lawful money of the United States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States.
“Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency.
“Domestic Subsidiary” means a Subsidiary organized under the laws of the United States or any state or territory thereof or the District of Columbia. 
“Effective Date” is defined in the preamble hereof.
“Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.
“ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations.
“Event of Default” is defined in Section 8.
“Exchange Act” is the Securities Exchange Act of 1934, as amended.
“Financial Statement Repository” is S43da5@svb.com or such other means of collecting information approved and designated by Bank after providing notice thereof to Borrower from time to time. 
“Foreign Currency” means lawful money of a country other than the United States.
“Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary. 
“Funding Date” is any date on which a Credit Extension is made to or for the account of Borrower which shall be a Business Day.
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“FX Business Day” is any day when (a) Bank’s Foreign Exchange Department is conducting its normal business and (b) the Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 
“FX Contract” is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency on a specified date. 
“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination.
“General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security and other deposits, payment intangibles, contract rights, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.
“Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.
“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization.
“Guarantor” is any Person providing a Guaranty in favor of Bank.
“Guaranty” is any guarantee of all or any part of the Obligations, as the same may from time to time be amended, restated, modified or otherwise supplemented.
“Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations.
“Indemnified Person” is defined in Section 12.3.
“Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.
“Intellectual Property” means, with respect to any Person, all of such Person’s right, title, and interest in and to the following:
(a)its Copyrights, Trademarks and Patents; 
(b)any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how and operating manuals;
(c)any and all source code;
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(d)any and all design rights which may be available to such Person;
(e)any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and
(f)all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.
“Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash) determined in accordance with GAAP for the relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of Borrower and its Subsidiaries, including, without limitation or duplication, all commissions, discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with interest rate swap, cap, and similar arrangements, and the interest portion of any deferred payment obligation (including leases of all types).
“Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above.
“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person.
“IPO” means an initial, underwritten offering and sale of its securities to the public pursuant to an effective registration statement under Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended.
“Key Person” is each of Borrower’s (a) Chief Executive Officer, who is Ian Siegel as of the Effective Date, (b) Chief Financial Officer, who is David Travers as of the Effective Date, and (c) Chief Operating Officer, who is Jeff Zwelling as of the Effective Date. 
“Letter of Credit” means a standby letter of credit issued by Bank or another institution based upon an application, guarantee, indemnity or similar agreement on the part of Bank as set forth in Section 2.3.
“Letter of Credit Application” is defined in Section 2.3(b).
“Letter of Credit Reserve” is defined in Section 2.3(e).
“Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property.
“Liquidity” is, at any time, the sum of (a) Borrower’s unrestricted cash and Cash Equivalents held at Bank or subject to a Control Agreement in favor of Bank, and (b) the Availability Amount.
“Loan Documents” are, collectively, this Agreement and any schedules, exhibits, certificates, notices, and any other documents related to this Agreement any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement by Borrower and/or any Guarantor with or for the benefit of Bank, all as amended, restated, or otherwise modified.
“Material Adverse Change” is (a) a material impairment in the perfection or priority of Bank’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower; or (c) a material impairment of the prospect of repayment of any portion of the Obligations.
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“Monthly Financial Statements” is defined in Section 6.2(c).
“Net Income” means, as calculated on a consolidated basis for Borrower and its Subsidiaries for any period as at any date of determination, the net profit (or loss), determined in accordance with GAAP after provision for taxes, of Borrower and its Subsidiaries for such period taken as a single accounting period.
“Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, fees, Bank Expenses, the Unused Revolving Line Facility Fee, and other amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, all obligations relating to Bank Services and interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents.
“Operating Documents” are, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent agency) of such Person’s jurisdiction of organization on a date that is no earlier than thirty (30) days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto.
“Original Agreement” is defined in the preamble hereof.
“Overadvance” is defined in Section 2.5.
“Patents” means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.
“Payment Date” is the last calendar day of each month. 
“Perfection Certificate” is defined in Section 5.1.
“Permitted Acquisition” is an acquisition of all or substantially all of the equity interests or assets (or all or substantially all of the assets constituting a business unit, division, product line or line of business) of a Person, provided:
(a)the Person acquired or assets acquired is a type of business (or the assets are used in a type of business) permitted to be engaged by Borrower  under this Agreement;
(b) the Person or Persons to be acquired shall be solely organized in the United States and shall conduct their principal operations in the United States;
(c)no Event of Default exists or would result from such acquisition;
(d)Borrower shall be in compliance with all covenants set forth in this Agreement both before and after giving effect to any such acquisition;
(e)the total cash consideration paid in connection with all such acquisitions, does not exceed Two Million Dollars ($2,000,000) per acquisition and Four Million Dollars ($4,000,000) in in the aggregate in any fiscal year;
(f)Bank shall have received at least twenty (20) days prior written notice of the closing date for such acquisition; 
(g)Borrower shall remain a surviving legal entity; and
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(h)any Person that is acquired and remains a separate legal entity shall be organized in the United States and shall become a co-borrower under this Agreement in accordance with Section 6.13 hereof.
“Permitted Indebtedness” is:
(a)Borrower’s Indebtedness to Bank under this Agreement and the other Loan Documents;
(b)Indebtedness existing on the Effective Date which is shown on the Perfection Certificate;
(c)Subordinated Debt;
(d)unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 
(e)Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business;
(f)Indebtedness secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted Liens” hereunder;
(g)(i) Indebtedness owing from one Co-Borrower or Guarantor to another Co-Borrower or Guarantor hereunder, (ii) Indebtedness owing from Borrower to any Subsidiaries that are not Co-Borrowers or Guarantors hereunder in an aggregate amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000) and (iii) Indebtedness of any Subsidiaries that are not Co-Borrowers or Guarantors hereunder to Borrower in an aggregate principal amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000);
(h)undrawn letters of credit issued by Bank;
(i)unsecured Indebtedness of Borrower arising in connection with corporate credit cards with financial institutions other than Bank incurred in the ordinary course of business in an aggregate amount not to exceed One Hundred Thousand Dollars ($100,000);
(j)Indebtedness not to exceed Five Hundred Thousand Dollars ($500,000) in aggregate amount outstanding at any time in connection with that certain letter of credit no. 3129736 issued by Bank of America at Borrower’s request; and
(k)extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (j) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.
“Permitted Investments” are:
(a)Investments (including, without limitation, Subsidiaries) existing on the Effective Date which are shown on the Perfection Certificate;
(b)Investments consisting of Cash Equivalents; 
(c)Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower;
(d)Investments consisting of deposit accounts (but only to the extent that Borrower is permitted to maintain such accounts pursuant to Section 6.8 of this Agreement) in which Bank has a first priority perfected security interest;
(e)Investments accepted in connection with Transfers permitted by Section 7.1;
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(f)Investments consisting of the creation of a Subsidiary for the purpose of consummating a merger transaction permitted by Section 7.3 of this Agreement, which is otherwise a Permitted Investment;
(g)Investments (i) by Borrower in Subsidiaries that are Co-Borrowers or Guarantors hereunder, (ii) by Borrower in Subsidiaries that are not Co-Borrowers or Guarantors hereunder in an aggregate amount not to exceed Five Million Dollars ($5,000,000) in the aggregate during the term of this Agreement, and (iii) by Subsidiaries in other Subsidiaries not to exceed Five Million Dollars ($5,000,000) in the aggregate during the term of this Agreement, or in Borrower; 
(h)Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by the Board in an aggregate amount not to exceed One Hundred Thousand Dollars ($100,000) in any fiscal year;
(i)Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;
(j)Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (j) shall not apply to Investments of Borrower in any Subsidiary; 
(k)Investments consisting of treasury stock of Borrower held by Borrower as a result of repurchases of the stock of former employees or consultants pursuant to stock repurchase agreements to the extent otherwise permitted hereunder; and
(l)joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash investments by Borrower do not exceed One Hundred Thousand Dollars ($100,000) in the aggregate in any fiscal year. 
“Permitted Liens” are:
(a)Liens existing on the Effective Date which are shown on the Perfection Certificate or arising under this Agreement or the other Loan Documents;
(b)Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good faith and for which Borrower maintains adequate reserves on Borrower’s Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder;
(c)purchase money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than One Hundred Thousand Dollars ($100,000) in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment;
(d)Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed One Hundred Thousand Dollars ($100,000) and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 
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(e)Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA);
(f)Liens incurred in the extension, renewal or refinancing of the Indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase;
(g)leases or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest therein;
(h)non-exclusive license of Intellectual Property granted to third parties in the ordinary course of business, and licenses of Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States;
(i)Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections 8.4 and 8.7; and
(j)Liens in favor of other financial institutions arising in connection with Borrower’s or Borrower’s Subsidiary’s deposit and/or securities accounts held at such institutions, provided that (i) Bank has a first priority perfected security interest in the amounts held in such deposit and/or securities accounts to the extent required pursuant to Section 6.8(b) and (ii) such accounts are permitted to be maintained pursuant to Section 6.8 of this Agreement. 
“Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.
“Prime Rate” is the rate of interest per annum from time to time published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect; provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Agreement; and provided further that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by Bank, the “Prime Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at its principal office in the State of California (such Bank announced Prime Rate not being intended to be the lowest rate of interest charged by Bank in connection with extensions of credit to debtors); provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
“Registered Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter be made.
“Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.
“Reserves” means, as of any date of determination, such amounts as Bank may from time to time establish and revise in its good faith business judgment, reducing the amount of Advances and other financial accommodations which would otherwise be available to Borrower (a) to reflect events, conditions, contingencies or risks which, as determined by Bank in its good faith business judgment, do or may adversely affect (i) the Collateral 
34

or any other property which is security for the Obligations or its value (including without limitation any increase in delinquencies of Accounts), (ii) the assets, business or prospects of Borrower or any Guarantor, or (iii) the security interests and other rights of Bank in the Collateral (including the enforceability, perfection and priority thereof); or (b) to reflect Bank's reasonable belief that any collateral report or financial information furnished by or on behalf of Borrower or any Guarantor to Bank is or may have been incomplete, inaccurate or misleading in any material respect; or (c) in respect of any state of facts which Bank determines constitutes an Event of Default or may, with notice or passage of time or both, constitute an Event of Default.
“Responsible Officer” is any of the Chief Executive Officer, SVP of Finance, Chief Business Officer, Chief Financial Officer and Chief Operating Officer of Borrower.  
“Restricted License” is any material license or other agreement with respect to Intellectual Property which is material to the conduct of Borrower’s business where Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under or termination of could reasonably be expected to interfere with Bank’s right to sell any Collateral.
“Revolving Line” is an aggregate principal amount equal to Thirty-Five Million Dollars ($35,000,000). 
“Revolving Line Maturity Date” is September 2, 2022.
“SEC” shall mean the Securities and Exchange Commission, any successor thereto, and any analogous Governmental Authority.
“Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be made.
“Subordinated Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s now or hereafter indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on terms acceptable to Bank.
“Subsidiary” is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person.  Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower or Guarantor.
“Trademarks” means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks.
“Transfer” is defined in Section 7.1. 
“Unused Revolving Line Facility Fee” is defined in Section 2.7(b).
[Signature page follows.]

35

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date.
						
	BORROWER:
		
	ZIPRECRUITER, INC.
		
	By:	/s/ David Travers
		
	Name:	David Travers
		
	Title:	Chief Financial Officer
		
	BANK:
		
	SILICON VALLEY BANK
		
	By:	/s/ Chris Lee
		
	Name:	Chris Lee
		
	Title:	Director

[Signature Page to Second Amended and Restated Loan and Security Agreement]

B

EXHIBIT A - COLLATERAL DESCRIPTION
The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property:
All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and
all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.
Notwithstanding the foregoing, the Collateral does not include (i) more than sixty-five percent (65%) of the issued and outstanding capital stock, membership units or other securities entitled to vote owned or held of record by Borrower in any Foreign Subsidiary or any Subsidiary that is a controlled foreign corporation (as defined in the Internal Revenue Code), provided that the Collateral shall include one hundred percent (100%) of the issued and outstanding non-voting capital stock of such Subsidiary; (ii) rights held under a license that are not assignable by their terms without the consent of the licensor thereof (but only to the extent such restriction on assignment is enforceable under applicable law); (iii) any interest of Borrower as a lessee under an Equipment lease or real property lease if Borrower is prohibited by the terms of such lease from granting a security interest in such lease or under which such an assignment or Lien would cause a default to occur under such lease; provided, however, that upon termination of such prohibition, such interest shall immediately become Collateral without any action by Borrower or Bank; or (iv) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property.  If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property.
Pursuant to the terms of a certain negative pledge arrangement with Bank, Borrower has agreed not to encumber any of its Intellectual Property without Bank’s prior written consent.

Exhibit A

EXHIBIT B
COMPLIANCE STATEMENT
												
	TO:	SILICON VALLEY BANK 	Date:	
	FROM:	ZIPRECRUITER, INC.		

Under the terms and conditions of the Second Amended and Restated Loan and Security Agreement between Borrower and Bank (the “Agreement”): Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below.  Attached are the required documents evidencing such compliance, setting forth calculations prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.
									
	Please indicate compliance status by circling Yes/No under “Complies” column.
	
	Reporting Covenants	Required	Complies
			
	Monthly financial statements (consolidated and consolidating) with Compliance Statement	Monthly within 30 days	Yes   No
	Annual financial statements (CPA Audited)*	FYE within 180 days	Yes   No
	10-Q, 10-K and 8-K	Within 5 days after filing with SEC	Yes   No
	A/R & A/P Agings	Monthly within 30 days	Yes   No
	Transaction report	Monthly within 30 days	Yes   No
	409A Valuation	Annually within 30 days of completion	Yes   No
	Board approved projections	(A) The earlier of (i) FYE within 30 days or (ii) within 7 days of approval by Borrower’s board of directors and (B) as amended/updated within 7 days	Yes   No
	*Provided however, if the Board does not require audited Annual Financial Statements for any fiscal year, then Borrower shall instead deliver CPA reviewed Annual Financial Statements for such fiscal year only.

												
	Financial Covenant
	Required	Actual	Complies
				
	Maintain as indicated:			
	Minimum Adjusted EBITDA	See Schedule 1	$________	Yes   No
	Minimum Liquidity	≥ $10,000,000		Yes   No

Other Matters
									
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries?  If yes, provide copies of any such amendments or changes with this Compliance Statement.
	Yes	No

The following are the exceptions with respect to the statements above:  (If no exceptions exist, state “No exceptions to note.”)
--------------------------------------------------------------------------------------------------------------------------------------------
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Schedule 1 to Compliance Statement
Financial Covenants of Borrower
In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.
Dated:    ____________________
I.Minimum Adjusted EBITDA (Section 6.9(a))
Required:     See chart below (measured on a trailing 12 month basis)
						
	Measuring Period Ending	Minimum Adjusted EBITDA
	June 30, 2020	$10,000,000
	September 30, 2020	$10,000,000
	December 31, 2020	$10,000,000
	March 31, 2021	$0
	June 30, 2021	$0
	September 30, 2021	$5,000,000
	December 31, 2021 and for each calendar quarter thereafter	$10,000,000

Actual: Measured on a trailing 12 month basis

												
	A.	Net Income	$	
				
	B.	Interest Expense	$	
				
	C.	Depreciation and Amortization Expense (to the extent deducted in the calculation of Net Income)	$	
				
	D.	Income Tax Expense	$	
				
	E.	Non-Cash Stock Based Compensation	$	
				
	F.	One-time Cash restructuring charges (including, without limitation, any costs and expenses relating to cost saving initiatives, operating expense reductions, and severance costs) in an amount not to exceed Two Million Dollars ($2,000,000)	$	
				
	G.	Changes in Deferred Revenue	$	
				
	H.	Capitalized software costs	$	
				
	I.	Adjusted EBITDA (line A, plus lines B, C, D, and E, plus line F, plus or minus line G, minus line H)	$	

 

Is line H greater than or equal to the minimum Adjusted EBITDA required for the applicable measuring period set forth in the chart above? 
												
		No, not in compliance		Yes, in compliance
	II.	Minimum Liquidity (Section 6.9(b)		

Required:  Liquidity ≥ $10,000,000
Actual:
												
	A.	Aggregate value of Borrower’s unrestricted cash and Cash Equivalents held at Bank or subject to a Control Agreement in favor of Bank	$	
				
	B.	Availability Amount	$	
				
	C.	Liquidity (the sum of lines A and B)	$	

Is line C greater than or equal to $10,000,000?
												
		No, not in compliance		Yes, in compliance

EXHIBIT C
CORPORATE BORROWING CERTIFICATE
												
	BORROWER	ZIPRECRUITER, INC.	DATE:	September 2, 2020
	BANK:	SILICON VALLEY BANK		

I hereby certify as follows, as of the date set forth above:
1.    I am the Secretary, Assistant Secretary or other officer of Borrower.   My title is as set forth below.
2.    Borrower’s exact legal name is set forth above.  Borrower is a corporation existing under the laws of the State of     Delaware.
3.    Attached hereto are true, correct and complete copies of Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth above.  Such Certificate of Incorporation has not been amended, annulled, rescinded, revoked or supplemented, and remains in full force and effect as of the date hereof.
4.    The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action).  Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Silicon Valley Bank (“Bank”) may rely on them until Bank receives written notice of revocation from Borrower.
RESOLVED, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:
																					
	Name		Title		Signature		Authorized to Add or Remove Signatories

	David Travers		Chief Financial Officer				☒
							
	Ian Siegel		Chief Executive Officer				☒
							
	Tim Yarbrough		Chief Business Officer				☐
							
	Amy Garefis		Senior VP Accounting				☐

RESOLVED FURTHER, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower.

RESOLVED FURTHER, that such individuals may, on behalf of Borrower:
Borrow Money.  Borrow money from Bank.
Execute Loan Documents.  Execute any loan documents Bank requires. 
Grant Security.  Grant Bank a security interest in any of Borrower’s assets.

Negotiate Items.  Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds.
Apply for Letters of Credit.  Apply for letters of credit from Bank.
Enter Derivative Transactions.  Execute spot or forward foreign exchange contracts, interest rate swap agreements, or other derivative transactions.
Further Acts.  Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effect these resolutions.

RESOLVED FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified. 

5.    The persons listed above are Borrower's officers or employees with their titles and signatures shown next to their names
						
	By:	
	Name:	/s/ David Traver
	Title:	Chief Financial Officer

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower.
I, the Chief Executive Officer of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above.
						
	By:	
	Name:	Ian Siegel
	Title:	Chief Executive Officer

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