Document:

exhibit1021

SEVENTH AMENDMENT TO LEASE  THIS SEVENTH AMENDMENT TO LEASE (this “Amendment”) is dated for reference purposes as of  October 19, 2021 between FSP-RIC LLC, a Delaware limited liability company (“Landlord”), and ZILLOW, INC., a  Washington corporation (“Tenant”).  Landlord is authorized to insert the date of its signature in the date blank above.  RECITALS  A. Landlord, as successor-in-interest to The Northwestern Mutual Life Insurance Company, and Tenant are parties to that certain Office Lease dated March 22, 2011 (the “Initial Lease”), as amended by Amendment  to Office Lease dated June 27, 2012 (the “First Amendment”), Second Amendment to Lease dated April 16, 2013 (the  “Second Amendment”), Third Amendment to Lease dated January 10, 2014 (the “Third Amendment”), Fourth  Amendment to Lease dated May 2, 2014 (the “Fourth Amendment”), Fifth Amendment to Lease dated November 19,  2014 (the “Fifth Amendment”), and Sixth Amendment to Lease dated June 21, 2016 (the “Sixth Amendment”, and  collectively with all of the foregoing, the “Lease”), pursuant to which Tenant leases certain space (the “Premises”) in  the building located at 1301 Second Avenue, Seattle, Washington (the “Building”).  B. Pursuant to the Lease, Tenant currently leases the 29th through 40th floors of the Building. C. The current Expiration Date of the Lease is December 31, 2024. D. Landlord and Tenant desire to further amend the Lease on the terms and provisions set forth herein, including without limitation, (a) addition to the Premises of the 41st and 42nd floors of the Building effective as of  March 1, 2022, (b) deletion from the Premises of the 29th and 30th floors of the Building effective as of February 28,  2022, (c) subject to the terms of this Amendment, deletion from the Premises of the 31st through 35th floors of the  Building effective as of December 31, 2024, and (d) extension of the Term through December 31, 2032.  AGREEMENTS  NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and other  good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the parties  agree as follows:  1. Addition of Additional Space.  Landlord and Tenant hereby agree that the entire 41st and 42nd floors of the Building consisting of 40,213 square feet of Rentable Area (the “Additional Space”) shall be added to  the Premises effective as of March 1, 2022 (the “Additional Space Commencement Date”) for the remaining Term,  including the Additional Term (as defined in Section 4 below).  The Additional Space is depicted on the floor plans  attached hereto as Exhibit A, which Exhibit A shall be considered as having been added to and to have become a part  of Exhibit B of the Lease effective as of the Additional Space Commencement Date.   Tenant acknowledges that  Tenant currently occupies the Additional Space pursuant to a pre-existing sublease arrangement, and thus Landlord  shall have no affirmative obligations with respect to the delivery of possession of the Additional Space to Tenant.  Tenant shall lease the Additional Space in their then-current “as-is” condition as of the Additional Space  Commencement Date and Landlord has not made any representations or warranties, either express or implied, with  regard to the condition of the Additional Space, and Landlord shall have no obligation to make or pay for any  improvements or alterations to the Additional Space except for the Supplemental Allowance set forth in Section 8  below.  For purposes of clarification, Landlord agrees that Tenant shall have no obligation to restore the Additional  Space to its pre-existing condition at the expiration of Tenant’s existing sublease of the Additional Space, and that for  purposes of Tenant’s restoration obligations with respect to the Additional Space at the expiration or termination of  the Lease, the Additional Space shall be considered to have been delivered to Tenant in the condition that it exists as  of the Additional Space Commencement Date.  Effective as of the Additional Space Commencement Date, the  Rentable Area of the Additional Space shall be added to the Rentable Area of the Premises and the Tenant’s  Proportionate Share and Monthly Base Rent shall be adjusted to account for the increased Rentable Area of the  Premises.    2. Deletion of Early Give-Back Space;  Stairway Removal Work.  The Term shall expire with respect to the entire 29th and 30th floors of the Building (the “Early Give-Back Space”) effective as of February 28,  1  Exhibit 10.21 

 

2  2022.  Tenant shall surrender possession of the Early Give-Back Space to Landlord on or prior to February 28, 2022  in a broom-clean condition, having removed the items set forth on Schedule 3 attached hereto.  Tenant shall have no  remaining rights and Landlord shall have no remaining obligations under the Lease with respect to the Early Give- Back Space after February 28, 2022, and, conditioned upon Tenant’s surrender of possession of the Early Give-Back  Space to Landlord on or prior to February 28, 2022 as required herein, Tenant shall have no further obligations under  the Lease with respect to the Early Give-Back Space (including without limitation, the obligation to continue to pay  Monthly Base Rent or Tenant’s Proportionate Share of Operating Expenses and Real Estate Taxes) for any period  after February 28, 2022, subject to any surviving obligations under the Lease (including the immediately following  paragraph).  If Tenant fails to surrender possession of the Early Give-Back Space to Landlord on or prior to February  28, 2022 as required herein, then the provisions of Article 34.11 of the Lease shall be applicable.  Notwithstanding the foregoing, Tenant’s obligations with respect to the interconnecting stairwell between  the 30th floor and the 31st floor (the “Stairwell”) shall be as follows: (a) upon written notice from Landlord to Tenant  (a “Stairwell Removal Notice”), Tenant, within thirty (30) days following receipt of the Stairwell Removal Notice,  shall notify Landlord (such notice from Tenant being a “Stairwell Removal Election”) whether Tenant will perform,  or has elected to have Landlord perform (in which event Landlord shall perform), the following elements of work: (i)  remove the existing Stairwell improvements, (ii) re-fill the floor slab cut-out to restore the structural specifications of  the floor slab to its condition existing prior to the installation of the Stairwell, and (iii) perform all other associated  work to restore the area associated with or affected by the Stairwell to its condition existing prior to the installation of  the Stairwell (collectively, the “Stairwell Removal Work”); (b) until Landlord delivers a Stairwell Removal Notice to  Tenant, Tenant shall have neither the right nor the obligation to perform the Stairwell Removal Work or to otherwise  modify the Stairwell except as set forth in clause (h) below; (c) the Stairwell Removal Work shall be performed by  the applicable party in a good and workmanlike manner, in compliance with all applicable laws (including fire/life  safety laws) and, if performed by Tenant, in accordance with plans and specifications approved by Landlord, which  approval shall not be unreasonably withheld, conditioned or delayed; (d) if performed by Tenant, Tenant shall  complete the Stairwell Removal Work within six (6) months following Tenant’s delivery of a Stairwell Removal  Election, subject to extension for force majeure (as set forth in Section 34.30 of the Lease as if such section were  applicable to Tenant); provided, however, that Tenant shall not be required to commence the Stairwell Removal Work  prior to February 28, 2022 in the event Tenant elects to perform same (with such Stairwell Removal Election  effectuating such election being deemed given on February 28, 2022 if in fact given prior to such date); (e) if Tenant  elects to perform the Stairwell Removal Work, then upon Tenant’s lien-free completion of the Stairwell Removal  Work, Landlord agrees to reimburse Tenant for fifty percent (50%) of the documented out-of-pocket third party costs  incurred by Tenant for the performance of the Stairwell Removal Work, provided that such third party costs shall not  exceed the budgeted costs for the Stairwell Removal Work delivered by Tenant to Landlord prior to Tenant’s  commencement of the Stairwell Removal Work and approved by Landlord (not to be unreasonably withheld,  conditioned or delayed) in connection with Landlord’s approval of the plans and specifications for the Stairwell  Removal Work, except to the extent any cost increase is due to the interference, negligence or willful misconduct of  Landlord, its employees, agents or contractors; (f) if Landlord delivers a Stairwell Removal Notice, then in lieu of  having Tenant perform the Stairwell Removal Work, Landlord shall have the right to notify Tenant in the Stairwell  Removal Notice of Landlord’s election to perform the Stairwell Removal Work, in which case notwithstanding any  contrary provision hereof, Landlord shall perform the Stairwell Removal Work; (g) if either (A) Landlord delivers a  Stairwell Removal Notice that notifies Tenant of Landlord’s election to have Landlord perform the Stairwell Removal  Work, or (B) Tenant delivers a Stairwell Removal Election setting forth Tenant’s election to have Landlord perform  the Stairwell Removal Work, then Tenant shall be obligated to reimburse Landlord for fifty percent (50%) of the  documented out-of-pocket third party costs incurred by Landlord for the performance of the Stairwell Removal Work,  which reimbursement shall be made by Tenant to Landlord within thirty (30) days after Landlord’s completion of the  Stairwell Removal Work and delivery of a written invoice from Landlord to Tenant, together with reasonable  supporting documentation evidencing such costs; and (h) if Tenant delivers a Stairwell Removal Election that requires  Tenant to perform the Stairwell Removal Work, but Tenant fails to diligently commence and complete the Stairwell  Removal Work in the time period set forth above, then Landlord shall have the right on written notice to Tenant to  perform the Stairwell Removal Work (or to complete the remaining portion of the Stairwell Removal Work), in which  event Landlord shall be responsible for fifty percent (50%) of the cost of the Stairwell Removal Work, but not  exceeding the budgeted cost thereof that was approved by Landlord in clause (e) above, and Tenant shall be  responsible for all other costs incurred by either party (such costs to be documented, with respect to Landlord) for the  completion of the Stairwell Removal Work.  

 

3  If Landlord has not delivered a Stairwell Removal Notice to Tenant on or before February 28, 2022, then  subsequent to such date and prior to delivering a Stairwell Removal Notice:  (a) upon written notice from Landlord to  Tenant (a “Stairwell Enclosure Notice”), Tenant, within thirty (30) days following receipt of the Stairwell Enclosure  Notice, shall notify Landlord (such notice from Tenant being a “Stairwell Enclosure Election”) whether Tenant will  perform, or has elected to have Landlord perform (in which event Landlord shall perform), the construction of an  enclosure around the Stairwell on the 31st floor (and if required by applicable code, also around the 30th floor),  (collectively, the “Stairwell Enclosure Work”); (b) until Landlord delivers a Stairwell Enclosure Notice to Tenant,  Tenant shall have neither the right nor the obligation to perform the Stairwell Enclosure Work; (c) the Stairwell  Enclosure Work shall be performed by the applicable party in a good and workmanlike manner, in compliance with  all applicable laws (including fire/life safety laws) and, if performed by Tenant, in accordance with plans and  specifications approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed; (d)  if performed by Tenant, Tenant shall complete the Stairwell Enclosure Work within three (3) months following  Tenant’s delivery of a Stairwell Enclosure Election, subject to extension for force majeure (as set forth in Section  34.30 of the Lease as if such section were applicable to Tenant); (e) if Tenant elects to perform the Stairwell Enclosure  Work, Tenant shall bear all the costs of such work, except to the extent any such costs are due to the interference,  negligence or willful misconduct of Landlord, its employees, agents or contractors; (f) if Landlord delivers a Stairwell  Enclosure Notice, then in lieu of having Tenant perform the Stairwell Enclosure Work, Landlord shall have the right  to notify Tenant in the Stairwell Enclosure Notice of Landlord’s election to perform the Stairwell Enclosure Work, in  which case notwithstanding any contrary provision hereof, Landlord shall perform the Stairwell Enclosure Work; (g)  if either (A) Landlord delivers a Stairwell Enclosure Notice that notifies Tenant of Landlord’s election to have  Landlord perform the Stairwell Enclosure Work, or (B) Tenant delivers a Stairwell Enclosure Election setting forth  Tenant’s election to have Landlord perform the Stairwell Enclosure Work, then Tenant shall be obligated to reimburse  Landlord for all of the documented out-of-pocket third party costs incurred by Landlord for the performance of the  Stairwell Enclosure Work, which reimbursement shall be made by Tenant to Landlord within thirty (30) days after  Landlord’s completion of the Stairwell Enclosure Work and delivery of a written invoice from Landlord to Tenant,  together with reasonable supporting documentation evidencing such costs; and (h) if Tenant delivers a Stairwell  Enclosure Election that requires Tenant to perform the Stairwell Enclosure Work, but Tenant fails to diligently  commence and complete the Stairwell Enclosure Work in the time period set forth above, then Landlord shall have  the right on written notice to Tenant to perform the Stairwell Enclosure Work (or to complete the remaining portion  of the Stairwell Enclosure Work), in which event Tenant shall be responsible for all costs incurred by Tenant, and all  documented costs incurred by Landlord, for the completion of the Stairwell Enclosure Work.  The rights and obligations of Landlord and Tenant under this paragraph 2 shall survive the termination of the  Lease with respect to the 30th floor.        3. Deletion of Remaining Give-Back Space.  Subject to the provisions of Section 9 below, the Term shall expire with respect to the 31st through 35th floors of the Building (the “Remaining Give-Back Space”) effective  as of December 31, 2024, and no extension of the Term pursuant to Section 4 of this Amendment shall be applicable  to the Remaining Give-Back Space.  Notwithstanding the foregoing, any portion of the 31st through 35th floors of the  Building that Tenant elects to continue to lease as Flex Space (pursuant to Section 9 below) shall be considered  removed from the definition of Remaining Give-Back Space and this Section 3 shall not be applicable thereto.  Tenant  shall surrender possession of the Remaining Give-Back Space to Landlord on or prior to December 31, 2024 in the  condition required under the Lease for the return of possession of the Premises to Landlord as of the expiration or  earlier termination of the Lease.  Tenant shall have no remaining rights and Landlord shall have no remaining  obligations under the Lease with respect to the Remaining Give-Back Space after December 31, 2024, and,  conditioned upon Tenant’s surrender of possession of the Remaining Give-Back Space to Landlord on or prior to  December 31, 2024 as required herein, Tenant shall have no further obligations under the Lease with respect to the  Remaining Give-Back Space (including without limitation, the obligation to continue to pay Monthly Base Rent or  Tenant’s Proportionate Share of Operating Expenses and Real Estate Taxes) for any period after December 31, 2024,  subject to any surviving obligations under the Lease.  If Tenant fails to surrender possession of the Remaining Give- Back Space to Landlord on or prior to December 31, 2024 as required herein, then the provisions of Article 34.11 of  the Lease shall be applicable.  4. New Premises and Extension of Term.  For purposes of this Amendment, the term “New Premises” means the Additional Space, floors 36 through 40 and any Flex Space that is added to the Premises pursuant  to Section 9 below.  The Term is hereby extended for the period from January 1, 2025 through December 31, 2032  

 

4  (the “Additional Term”) such that the new Expiration Date shall be December 31, 2032.  Tenant shall retain its two  (2) options to further extend the Term after the Additional Term for the Renewal Terms set forth in Article 33 of the Lease, which options shall be exercisable only as to all, but not less than all, of the entire then-existing Premises, on the terms and provisions set forth in such Article 33, as modified by the Fifth Amendment, except that in determining the Current Market Rate, the phrase “the following Class A office buildings in the commercial/business district of Seattle, Washington: 1201 Third Avenue, City Centre (1420 Fifth Avenue), Two Union Square and Fourth and Madison” in the last sentence of Article 33(3) of the Lease is hereby deleted and replaced with “the then-existing or pre-leased Class A+ first-class office projects in the commercial/business district of Seattle, Washington”. 5. Rentable Area.  For purposes of the calculation of Monthly Base Rent, the Tenant’s Percentage Share and all other calculations under the Lease based on the Rentable Area of the Premises, the parties stipulate and  agree to the following Rentable Areas, including the adjustments thereof set forth herein:   (a) the Rentable Area of the Additional Space (floors 41 and 42) is 40,213 rentable square feet; (b) the existing Rentable Area of the entire Premises (floors 29 through 40) as of the date of this Amendment is 268,514 rentable square feet;   (c) the existing Rentable Area of the Early Give-Back Space (floors 29 and 30) is 43,982 rentable square feet;  (d) the existing Rentable Area of the Premises immediately following the deletion of the Early Give-Back Space but excluding the Additional Space (the existing Rentable Area of the 31st through 40th floors of the  Premises) shall be 224,532 rentable square feet until December 31, 2024;   (e) effective January 1, 2025, the Rentable Area of the Premises immediately following the deletion of the Remaining Give-Back Space (assuming no Flex Space is added to the Premises), but excluding the  Additional Space (the Rentable Area of the 36th through 40th floors of the Premises) shall be 114,543 rentable square  feet; and  (f) effective January 1, 2025, the Rentable Area of the New Premises (assuming no Flex Space is added to the Premises) shall be 154,756 rentable square feet.  For purposes of clarification, the parties stipulate and agree that the Rentable Area of the Additional Space  and each floor of the Premises from and after the commencement of the Additional Term shall be measured in  accordance with BOMA 2017 for Office Buildings – ANSI/BOMA Z65.1-2017 Method A, as promulgated by the  Building Owners and Managers Association (“2017 BOMA”), and that such rentable area is as follows:  Floor of Premises  Square Feet of Rentable  Area  42 20,034 41 20,179 40 22,908 39 22,906 38 22,908 37 22,906 36 22,915 Flex Space Square Feet of Rentable  Area  35 21,908 34 21,908 

 

5  33 22,906 32 22,906 31 22,906 Landlord shall have the right to change the standard for the measurement of the Rentable Area of the Premises  and Building for any Renewal Term under Article 33 of the Lease and/or the standard for measurement of the Rentable  Area of any Leased First Right Space (as defined in Schedule 2 to this Amendment) to the then-current BOMA  standard promulgated as of the date of the commencement of the applicable Renewal Term or the First Right  Commencement Date (as defined in Schedule 2 to this Amendment) with respect to the applicable Leased First Right  Space.    6. Monthly Base Rent. 6.1 Additional Space.  The Monthly Base Rent payable for the Additional Space shall be as  follows:  Period  Square Feet of  Rentable Area  Annual Base Rent per  Square Foot of Rentable  Area  Monthly Base  Rent  March 1, 2022 – February 28, 2023 40,213 $54.00 $180,958.50  March 1, 2023 – February 29, 2024 40,213 $55.62 $186,387.26  March 1, 2024 – February 28, 2025 40,213 $57.29 $191,983.56  March 1, 2025 – February 28, 2026 40,213 $59.01 $197,747.43  March 1, 2026 – February 28, 2027 40,213 $60.78 $203,678.85  March 1, 2027 – February 29, 2028 40,213 $62.60 $209,777.82  March 1, 2028 – February 28, 2029 40,213 $64.48 $216,077.85  March 1, 2029 – February 28, 2030 40,213 $66.41 $222,545.44  March 1, 2030 – February 28, 2031 40,213 $68.41 $229,247.61  March 1, 2031 – February 29, 2032 40,213 $70.46 $236,117.33  March 1, 2032 – December 31, 2032 40,213 $72.57 $243,188.12 6.2 Remainder of Premises.  The Monthly Base Rent payable for all of the remainder of the  Premises, excluding the Additional Space and taking into consideration the deletion of the Early Give-Back Space as  of February 28, 2022 and the deletion of the Remaining Give-Back Space as of December 31, 2024 (assuming no Flex  Space is added to the Premises) shall be as follows:  Period  Square Feet of  Rentable Area  Annual Base Rent per  Square Foot of  Rentable Area  Monthly Base  Rent  

 

Through February 28, 2022 268,514 $47.00 $1,051,679.83  March 1, 2022 – November 30, 2022 224,532 $47.00 $879,417.00  December 1, 2022 – November 30, 2023 224,532 $48.00 $898,128.00 December 1, 2023 – November 30, 2024 224,532 $49.00 $916,839.00 December 1, 2024 – December 31, 2024 224,532 $50.00 $935,550.00 January 1, 2025 – December 31, 2025 114,543 $52.00 $496,353.00 January 1, 2026 – December 31, 2026 114,543 $53.56 $511,243.59 January 1, 2027 – December 31, 2027 114,543 $55.17 $526,611.44 January 1, 2028 – December 31, 2028 114,543 $56.82 $542,361.11 January 1, 2029 – December 31, 2029 114,543 $58.53 $558,683.48 January 1, 2030 – December 31, 2030 114,543 $60.28 $575,387.67 January 1, 2031 – December 31, 2031 114,543 $62.09 $592,664.57 January 1, 2032 – December 31, 2032 114,543 $63.95 $610,418.74 7. Tenant’s Percentage Share.  Tenant shall continue to pay Tenant’s Percentage Share of Operating Expenses and Taxes in accordance with the terms and provisions of the Lease using the Rentable Area of the Office  Unit as the denominator in the calculation fraction.  For purposes of calculating Tenant’s Percentage Share for the  New Premises the same methodology shall be used to measure the Rentable Area of the Office Unit as used to measure  the Rentable Area of the Premises (i.e., when the Rentable Area of a portion of the Premises is measured (or  commences to be measured) in accordance with 2017 BOMA, then for purposes of the calculation of Tenant’s  Percentage Share for such portion of the Premises, the Rentable Area of the Office Unit shall be based on 2017  BOMA).  Based on the foregoing and the agreed-upon Rentable Areas set forth in Section 5 above, the parties agree  that the Tenant’s Percentage Share shall be as follows:   (a) 4.48% as to the Additional Space; (b) 30.79% as to the all of the Premises excluding the Additional Space, until the date of the deletion from the Premises of the Early Give-Back Space (through February 28, 2022);  (c) 25.75% as to all of the remaining Premises excluding the Additional Space, from and after the date of the deletion from the Premises of the Early Give-Back Space and continuing until immediately prior to the  deletion from the Premises of the Remaining Give-Back Space (March 1, 2022 – December 31, 2024); and   (d) 12.88% as to the all of the remaining Premises excluding the Additional Space, from and after the date of the deletion from the Premises of the Remaining Give-Back Space (assuming no Flex Space is added  to the Premises) (January 1, 2025 – Expiration Date).    The total Rentable Area of the Office Unit from and after adjustment to 2017 BOMA shall be 898,039  rentable square feet.  8. Supplemental Allowance. Landlord agrees to provide Tenant with an additional allowance in the amount of forty dollars ($40.00) per rentable square foot of the portion of New Premises consisting of floors 36-40  6  

 

7  and 41-42 (the “Supplemental Allowance,” being $40.00 per rentable square foot multiplied by 154,756 rentable  square feet, or $6,190,240.00).  The Supplemental Allowance shall be paid by Landlord to Tenant on or before any  date requested by Tenant on not less than forty-five (45) days written notice from Tenant, provided that the  Supplemental Allowance shall not be payable prior to March 1, 2022 nor after August 31, 2023 (subject to the last  sentence hereof).  Notwithstanding any contrary provision hereof, Tenant shall not be entitled to receive and Landlord  shall not be required to pay any portions of the Supplemental Allowance to Tenant at any time during which Landlord  has notified Tenant of an event or circumstance that if not cured within the applicable cure period set forth in Section  25.1 of the Lease would constitute an Event of Default under the Lease.  If Tenant fails to pay any Rent or other  amounts payable by Tenant under the Lease by the due date set forth in the Lease, Landlord shall have the right, but  not the obligation, to offset portions of the Supplemental Allowance against such unpaid Rent or other amounts owing  by Tenant to Landlord, and if such offset right is exercised, then such unpaid Rent or other amounts owing by Tenant  to Landlord against which the Supplemental Allowance is applied shall be treated as having been paid by Tenant as  of the date of such application.  All amounts of the Supplemental Allowance that have not been paid or credited to  Tenant by August 31, 2023 as provided above shall be paid to Tenant on August 31, 2023.        9. Flex Space.   Tenant shall have the on-going right to add one or more additional contiguous full floors from floors 31 through 35 of the Building to the Premises for the Additional Term (the “Flex Space”) on a top- down contiguous basis by Tenant’s written notice(s) to Landlord received not later than June 30, 2023 of Tenant’s  election to add Flex Space to the Premises (a “Flex Space Notice”).  For purposes of clarification, if Tenant elects to  add Flex Space to the Premises, then the floor(s) that are added to the Premises shall be the highest floor(s) from floors  31 through 35 that have not then been added to the Premises.  For example, if Tenant elects to add one floor of Flex  Space to the Premises, then the Flex Space that is added to the Premises shall be the 35th floor.  If Tenant subsequently  elects to add two (2) additional floors of Flex Space to the Premises, then such additional two (2) floors of the Flex  Space that are added to the Premises shall be the 33rd and 34th floors.    If Tenant elects to add Flex Space to the  Premises in accordance with this Section 9, then (a) the Flex Space shall be leased to Tenant during the Additional  Term at the same Monthly Base Rent rate per square foot of Rentable Area of Flex Space added to the Premises as  applicable to floors 36 through 40 during the Additional Term; (b) the Tenant’s Percentage Share shall be increased  to reflect the addition of the applicable Flex Space to the Premises; (c) the required amount of the Letter of Credit  shall be increased as provided in Section 10 below; and (d) the Flex Space that is added to the Premises shall be leased  to Tenant on all of the same other terms and conditions as applicable to the Tenant’s lease of floors 36 through 40  during the Additional Term, except that (i) the Supplemental Allowance for the Flex Space shall be seventy-nine  dollars ($79.00) per square foot of Rentable Area of the Flex Space that is added to the Premises, (ii) such  Supplemental Allowance for the Flex Space shall be paid to Tenant within forty-five (45) days after each written  notice from Tenant, but not prior to March 1, 2022, (iii) for purposes of the Flex Space all references in such Section  8 to August 31, 2023 shall be adjusted to eighteen (18) months after the date in clause (ii), and (iv) payment of such  Supplemental Allowance otherwise shall be subject to the same requirements and limitations as set forth in Section 8  above.  If Tenant elects to add Flex Space to the Premises in accordance with this Section 9, at Landlord’s option the  parties shall execute an amendment to the Lease to add such Flex Space to the Premises on the terms set forth herein.  The effectiveness of Tenant’s election to lease Flex Space shall not be conditioned upon execution of such an  amendment.  10. Letter of Credit.  Effective as of January 1, 2025, Paragraph 10 of Exhibit K to the Lease (as amended in the First Amendment, Second Amendment, Third Amendment and Fifth Amendment) is further amended  to replace the amount “$1,814,829.76” in each place it appears with the amount “$1,194,214.00”.   If Tenant elects to  add Flex Space to the Premises, then the reference to $1,194,214.00 set forth in the immediately preceding sentence  shall be increased by an amount equal to $7.71 per square foot of Rentable Area of the Flex Space added to the  Premises.  11. Confirmation of Additional Allowance.  The parties acknowledge and agree that in accordance with Section 7 of the Fifth Amendment, Tenant was granted an additional allowance in the amount of Three Million  Dollars ($3,000,000) (the “Previous Additional Allowance”) payable within thirty (30) days after December 1, 2022  in consideration of the extension of the Term for the entire then-existing Premises (i.e., floors 29-40) for the period  from December 1, 2022 through December 31, 2024.  In recognition that the Term of the Lease will expire with respect  to the Early Give-Back Space in advance of December 1, 2022, the Previous Additional Allowance is hereby reduced  from $3,000,000 to $2,508,607.00.  

 

12. Parking.  Tenant’s parking rights shall continue as set forth in Sections 1.1(t) and (u) and Article 27 of the Lease, provided that effective from and after the date of this Amendment, the number of Parking Spaces to  which Tenant is entitled under the Lease is hereby agreed to be one (1) Parking Space per each 1,600 square feet of  Rentable Area of the Premises that are leased by Tenant from time to time, subject to adjustment from time to time in  accordance with the provisions of Article 27 of the Lease.  Tenant’s parking rights shall be for unreserved parking  spaces, except that Tenant shall have the right to convert up to ten percent (10%) of its parking allocation to reserved  stalls.  Such reserved stalls shall be located in the same location as Tenant’s reserved stalls in effect as of the date of  this Amendment (or a portion of such reserved stalls, as applicable) or in such other locations as mutually agreed upon  by Landlord and Tenant.  Tenant shall continue to pay monthly parking rates equal to the then-current market rates in  effect from time to time for similar parking spaces at the Project, except that as provided in the Lease the rate for  reserved spaces shall be 175% of the then-current market rate for unreserved spaces.  For purposes of clarification,  there shall be no monthly rental abatement for Parking Spaces as set forth in Section 1.1(u) or the last sentence of the  first paragraph of Article 27 of the Lease.   13. Signage. (a) Elevator Signage.  Tenant shall continue to have the elevator signage rights set forth in Section 12 of the Fifth Amendment, except that the reference to “3 floors” in the first sentence of Section 12 of the  Fifth Amendment is hereby changed to “2 floors”.    (b) Exterior Signage.   Section 13 of the Fifth Amendment is hereby deleted and replaced with Schedule 1 attached to this Amendment.  14. Right of First Offer.  Effective as of the date of this Amendment, Article 32 of the Lease (as previously amended) is deleted in its entirety and replaced with Schedule 2 attached to this Amendment.     15. Landlord Access.  Effective as of the date of this Amendment, and notwithstanding subparagraph (b) of Article 21.1 of the Lease to the contrary, Landlord may exhibit the Remaining Give-Back Space to prospective purchasers, lenders or tenants at any time until the applicable portion thereof shall be added to the Premises in accordance with Section 9 hereof. Thereafter, the provisions of  Article 21.1 of the Lease (as modified herein) shall again apply to such space.  Effective as of the date of this amendment, subparagraph (b) of Article 21.1 of the Lease is hereby deleted and replaced with the following:  “(b)   Exhibit the Premises to prospective purchasers, lenders, or, during the last twenty-four (24) months of the Term of the Lease pertaining to each particular portion of the Premises (or at any time which Tenant is not Occupying a particular portion of the Premises), to prospective tenants;”. 16. Future Alterations.  Landlord hereby confirms its approval under Article 15 of the Lease of the plans for the proposed alteration of floors 36-40 approved by Landlord on June 23, 2021.  Notwithstanding any  contrary provision of Article 15.2 of the Lease, Landlord shall have the right to approve any future modifications to  the layout of the free-standing work station partitions in the Premises to the extent that such modifications affect the  HVAC, electrical, plumbing, or other systems or conveyances serving the Premises or Building.     17. Broker’s Commission.  Tenant represents and warrants to Landlord that it has had no dealing with any broker or agent in connection with this Amendment other than Flinn Ferguson Corporate Real Estate, representing  Tenant, and Colliers International, representing Landlord (collectively, the “Brokers”).  To the extent any commission  may be owing with respect to this Amendment, Landlord shall pay a commission to the Brokers in accordance with a  separate written agreement.  Tenant shall indemnify, defend and hold Landlord harmless from and against any and all  liabilities for any commissions or other compensation or charges claimed by any broker or agent other than the Brokers  based on dealings with Tenant.  18. Defined Terms; Conflict.  Capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Lease.  If there is any conflict between the terms, conditions and provisions of  this Amendment and the terms, conditions and provisions of the Lease, the terms, conditions and provisions of this  Amendment shall prevail.  19. No Further Amendment.  This Amendment set forth the entire agreement of the parties as to the subject matter hereof and supersedes all prior discussions and understandings between them.  Except as expressly  8  

 

9  modified by this Amendment, and terms, covenants and provisions of the Lease shall remain unmodified and in full  force and effect, and are hereby expressly ratified and confirmed.  20. Miscellaneous.  This Amendment may not be amended or rescinded in any manner except by an instrument in writing signed by a duly authorized officer or representative of each party hereto.  Each of the schedules  or exhibits referred to herein (if any), is incorporated herein as if fully set forth in this Amendment.  If any of the  provisions of this Amendment are found to be invalid, illegal or unenforceable by any court of competent jurisdiction,  such provision shall be stricken and the remainder of this Amendment shall nonetheless remain in full force and effect  unless striking such provision shall materially alter the intention of the parties.  No waiver of any right under this  Amendment shall be effective unless contained in a writing signed by a duly authorized officer or representative of  the party sought to be charged with the waiver and no waiver of any rights arising from any breach or failure to perform  shall be deemed to be a waiver of any future right or of any other right arising under this Amendment.  Tenant waives  any rights it may have to require the provisions of this Amendment to be construed against the party who drafted it.  Time is strictly of the essence with respect to all dates and time periods set forth in this Amendment.  21. Authority.  Each person signing this Amendment on behalf of each respective party represents and warrants that he or she is authorized to execute and deliver this Amendment, and that this Amendment will thereby  become binding upon Landlord and Tenant, respectively.  22. Counterparts.  This Amendment may be executed in counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same document.  Copies of this Amendment,  including electronic pdf or Docusign copies shall have the same force and effect as an original of this Amendment.  [Signatures on following pages]  

 

10  IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above  written.  LANDLORD: FSP-RIC, LLC,  a Delaware limited liability company  By: Fifth Street Properties, LLC,  a Delaware limited liability company,  Its Sole Member  By: CW CaP pital Ma nagement LL C,  a Delaware limited liab coility mpany,  Its  Manager   By: Name:   Title:  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 )  )   ss.  COUNTY OF _______________ )  __ personally appeared _______________________________________________, 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 ___________________ that the foregoing  paragraph is true and correct.  WITNESS my hand and official seal.  Notary Public  Commission Expiration Date   [SEAL]  /s/ JOSEPH A. CORRENTE Joseph A. Corrente Executive Vice President Los Angeles 21On ___Octo___ber 27_________, 20 , before me, __________Jayson McCormick__________________________________, a Notary Public,  Joseph Corrente California 1/16/2025 /s/ Jayson McCormick 

 

11  TENANT: ZILLOW, INC., a Washington corporation  By: _____________________________  STATE OF WASHINGTON )  ) ss.  COUNTY OF KING )  On this day of , 2021, before me, a Notary Public in and for the State  of  , personally appeared   [name], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who  executed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged  it as the  [title] of ______________________________________, to be the free and  voluntary act and deed of said corporation for the uses and purposes mentioned in the instrument.  IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year  first above  written.  NOTARY PUBLIC in and for the State of Washington,  residing at    My appointment expires    Print Name ____________________________________  /s/ TOBIAS MICHAEL ROBERTS Name:   Tobias Michael Roberts Title: Senior Vice President, Technology & Real Estate 27th October Washington Tobias Michael Roberts SVP Zillow, Inc. /s/ Jade Rice Seattle, WA Jade Rice 06232025 

 

EXHIBIT A  FLOOR PLANS FOR ADDITIONAL SPACE  

 

1  SCHEDULE 1  EXTERIOR SIGNAGE  1. Exterior Signs.  If (i) no Event of Default then exists, (ii) no Chronic Default has occurred or is continuing, (iii) Tenant and/or one or more Permitted Transferees continue to lease and Occupy (as defined below) at  least 154,000 square feet of Rentable Area of the Premises, and Tenant and/or a Permitted Transferee(s) leases and  Occupies more square feet of Rentable Area in the Premises than the most square feet of Rentable Area leased by any  other tenant (including all affiliates of any such other tenant) in the Building, and (iv) such signage is allowed outright  (subject to customary permitting) under applicable law without any additional cost (unless Tenant pays for any such  cost) or any adverse impact on Landlord, then effective as of the Additional Space Commencement Date Tenant may  replace the “Russell Investments Center” signage with comparable “Zillow” signage (the “Exterior Signs”) on the  columns adjacent to the main entrance to the Building that are not used for multi-tenant column signs. Notwithstanding  the foregoing, Landlord may require that the Exterior Signs include the building name at the location and in a design  selected by Landlord.  Tenant shall be responsible for all costs relating to the fabrication, installation, repair,  maintenance, restoration and removal of the Exterior Signs.  The size, design, content and method of attachment of  the Exterior Signs shall be consistent with the architectural and institutional quality of the Building and shall be subject  to Landlord’s prior approval, which approval shall not be unreasonably withheld, conditioned or delayed.  Tenant  shall supply Landlord with professionally prepared plans and specifications for the Exterior Signs in advance of their  manufacture or submission for permits.  The Exterior Signs must comply with all applicable City of Seattle laws, rules  and regulations.  The rights granted in this Section 1 are personal to the Original Tenant and may not be transferred to  any other party without Landlord’s express written consent in its sole discretion.  Consent to a Transfer shall not  constitute consent to an assignment of Tenant’s rights under this Section 1.  Upon termination of this Lease or if the  foregoing conditions cease to be satisfied during the Term, Tenant’s rights under this Section 1 shall terminate and  Landlord may remove the Exterior Signs and restore, to Landlord’s satisfaction, the affected areas so that they match  the adjacent surfaces and no evidence of the Exterior Signs is visible.  Tenant shall pay all actual, documented out-of- pocket costs incurred by Landlord under the prior sentence upon demand.  Landlord may remove (and then restore)  the Exterior Signs as and when necessary to perform repairs and maintenance, which repairs, maintenance and  restoration (as applicable) shall be at Tenant’s cost, as provided above.     2. Multi-Tenant Column Monument Signs.  Until such time as the Exterior Signs set forth in Section  1 of this Schedule are first installed, and provided that (i) no Event of Default then exists, (ii) no Chronic Default has  occurred or is continuing, and (iii) not more than two (2) floors of the Premises has been subleased to a subtenant that  is not a Permitted Transferee, and Tenant or a Permitted Transferee continue to lease and Occupy all portions of the  Premises that have not been subleased, Tenant shall continue to have the right to have the name “Zillow” displayed  on each of the two (2) multi-tenant column monument signs at the main entrance to the Building (“Tenant’s Monument  Signage”).  At such time as the Exterior Signs set forth in Section 1 of this Schedule are first installed, Tenant’s rights  under this Section 2 shall terminate.  All actual, documented out-of-pocket costs incurred by Landlord relating to a  particular tenant’s multi-tenant sign shall be paid by such tenant.  All actual, documented out-of-pocket costs incurred  by Landlord relating to more than one multi-tenant sign shall be shared by the tenants that are exhibited on such signs  in proportion to the number of signs of each such tenant.  The foregoing costs shall include, without limitation, costs  for installation, maintenance, repair, restoration and removal (including surface restoration in connection with  removal).  The rights granted in this Section 2 are personal to the Original Tenant and may not be transferred to any  other party without Landlord’s express written consent in its sole discretion.  Consent to a Transfer shall not constitute  consent to an assignment of Tenant’s rights under this Section 2.  At such time as the Exterior Signs set forth in Section  1 of this Schedule are first installed, or upon termination of the Lease, or if any of the foregoing conditions in clause  (i) through (iii) of this Section 2 cease to be satisfied during the Term, Tenant’s rights under this Section 2 shall terminate and Landlord may remove Tenant’s Monument Signage and restore, to Landlord’s satisfaction, the affected areas so that they match the adjacent surfaces and no evidence of the Tenant’s Monument Signage is visible.  Tenant shall pay all actual, documented out-of-pocket costs incurred by Landlord under the prior sentence upon demand. Landlord may remove (and then restore) Tenant’s Monument Signage as and when necessary to perform repairs and maintenance, which repairs, maintenance and restoration (as applicable) shall be at Tenant’s cost, as provided above. 3. Building Naming Rights.  If (i) no Event of Default then exists, (ii) no Chronic Default has occurred  or is continuing, (iii) Tenant and/or a Permitted Transferee(s) leases and Occupies at least 500,000 square feet of  Rentable Area of Premises, and (iv) the naming rights described herein are allowed outright (subject to customary  

 

2  permitting) under applicable law without any additional cost (unless Tenant pays for any such cost) or any adverse  impact on Landlord, then at Tenant’s request Landlord shall name the Building the “Zillow Tower” (the “Naming  Right”).  Tenant shall be responsible for all out-of-pocket costs incurred by Landlord in connection with Tenant’s  exercise of the Naming Right, including marketing, stationery and other expenses.  The rights granted in this Section  3 are personal to Original Tenant. and may not be transferred to or exercised by any other person or entity.   Consent  to a Transfer shall not constitute consent to an assignment or transfer of Tenant’s rights under this Section 3.  Upon  termination of the Lease or if at any time the foregoing conditions to the Naming Right cease to be satisfied, Tenant’s  rights under this Section 3 shall terminate, Landlord may take all action consistent with such termination and Tenant  shall cease to refer to the Building as the Zillow Tower.  During any period in which the Naming Right is in effect as  provided hereunder, Landlord shall refer (and shall cause its employees, brokers, agents and representatives to refer)  to the Building as the “Zillow Tower” in all marketing, advertising and promotional media and materials (whether  print, electronic, digital or otherwise); provided, however, Landlord shall not be responsible for ensuring use of such  name in verbal references to the Building.  4. Definition of Occupy.  For purposes of this Schedule 1 and Schedule 2 of this Amendment, all space in the Premises shall be deemed “Occupied” by Tenant, Tenant “Occupies” all space in the Premises, and Tenant  shall be deemed to be “Occupying” all space in the Premises that (i) is not subleased to a third party (that is not an  Affiliate of Tenant) and (ii) is not being marketed for assignment or sublease.   

 

1  SCHEDULE 2  RIGHT OF FIRST OFFER  1. Grant.  Subject to all of the terms and conditions of this Schedule 2 (“Schedule”), commencing from and after January 1, 2025 and continuing during the remaining Term (except as expressly provided below) (the  “ROFO Period”), Tenant shall have a right of first offer (the “Right of First Offer”) with respect to all space (the “First  Right Space”) not then contained within the Premises and located on the 31st through 35th floors of the Building.  2. Procedure for Offer and Acceptance. 2.1 Tenant’s Request For First Offer Notice.  At any time during the ROFO Period, but not  more frequently than once during any twelve (12) month period, Tenant may deliver to Landlord a written request  (“Request for First Offer Notice”), which request shall request that Landlord offer to lease to Tenant any Available  First Right Space (defined below) in accordance with this Section 2.1 of this Schedule.  Any Request for First Offer  Notice delivered by Tenant that does not comply with the foregoing condition shall, at the election of Landlord, be  null, void and of no force or effect.  As used herein, the term “Available First Right Space” shall mean any portion of  the First Right Space that, as of as of the date of Landlord’s First Offer Notice (defined below), is:  (i) either vacant  or is scheduled to become vacant (as a result of scheduled expiration or unscheduled termination of the lease  encumbering such space or otherwise):  (A) not more than twelve (12) months after the date Landlord received  Tenant’s Request for First Offer Notice and (B) not less than twenty-four (24) months prior to the date on which the  Term is then scheduled to expire; (ii) is not subject to any Superior Rights (defined below); (iii) is not the subject of  any then-ongoing written lease proposal or negotiations with any other party, and (iv) is of a size and configuration  that Landlord is then marketing for lease or is otherwise willing to lease in Landlord’s sole and absolute discretion;  provided that no space that is leased to any third party at the time that Tenant delivers a Request for First Offer Notice  shall be Available First Right Space unless Landlord shall have determined that the applicable tenant will not renew  or extend the term of its lease of such space.  “Superior Rights” means, at any particular time, each expansion or  renewal right of any type which is set forth in any lease affecting space in the Building.    2.2 Landlord’s First Offer Notice.  Within thirty (30) days of Landlord’s receipt from Tenant  of a Request for First Offer Notice, Landlord shall deliver to Tenant a written notice (a “First Offer Notice”), which  First Offer Notice shall:  (a) describe the portion(s) of the First Right Space, if any, that at such time is (or are)  Available First Right Space (each such space an “Offered First Right Space”), (b) state Landlord’s estimate of (i) the  Current Market Rate as of the First Right Commencement Date (as defined in Article 33 of the Lease, as adjusted in  accordance with Section 3.3 of this Schedule) and ROFO Rent (defined below) and (ii) the delivery date (each such  date, an “Offered Space Scheduled Commencement Date”) for each Offered First Right Space, if any, identified in  such First Offer Notice.  2.3 Acceptance by Tenant.  Tenant shall have the right, exercisable only by delivery of a  written notice (a “Tenant's Acceptance Notice”) to Landlord within ten (10) business days after Landlord’s delivery  of a First Offer Notice, to elect to lease the Offered First Right Space (or Offered First Right Spaces) identified in  such First Offer Notice; provided that notwithstanding anything to the contrary herein, Tenant shall not have any right  to deliver a Tenant’s Acceptance Notice with respect to the Offered First Right Space for which the Offered Space  Scheduled Commencement Date will occur less than twenty-four (24) months before the date on which the Term is  then scheduled to expire unless, at such time, Tenant has an unexercised Renewal Term pursuant to Article 33 of the  Lease, and Tenant elects in writing to exercise such extension option with respect to the entire then existing Premises,  in which case, the Term shall be extended by the applicable Renewal Term and the Current Market Rate (and the  Monthly Base Rent) payable during such Renewal Term shall be determined in connection with the determination of  the Current Market Rate (and ROFO Rent) with respect to the applicable Leased First Right Space.  If Tenant does  not deliver Tenant’s Acceptance Notice to Landlord within ten (10) business days after Landlord’s delivery of any  First Offer Notice, time being of the essence, then Tenant shall have no right under this Schedule to lease any portion  of the First Right Space during the twelve (12) month period following the date on which Tenant delivered its Request  for First Offer First Offer Notice, and subject to Tenant's right to deliver another Request for First Offer Notice  following expiration of the twelve (12) month period, Landlord shall be free to lease (or otherwise grant Superior  Rights with respect to) all or any portion of the First Right Space to anyone to whom Landlord desires on any terms  Landlord desires.  

 

2  3. Term; Rent; Other Terms. 3.1 If Tenant duly exercises its Right of First Offer in accordance with this Schedule with  respect to any Offered First Right Space that is identified in any First Offer Notice (any such space “Leased First  Right Space”), then:  (a) the term of the lease of such Leased First Right Space shall commence upon the date (the  “First Right Commencement Date”) that Landlord tenders to Tenant delivery of possession of such Leased First Right  Space which Tenant shall accept in its then existing “AS IS” condition and state of repair (except that Landlord shall  be deemed to have represented and warranted that the base Building systems serving the applicable Leased First Right  Space are in good working order and condition up to the point of connection to the Leased First Right Space (but not  including distribution)), (b) the expiration of Tenant’s lease of the Leased First Right Space shall be coterminous with  the termination of the Lease for the then existing Premises, (c) except as expressly provided to the contrary in this  Schedule, the remaining terms of Tenant’s lease of such Leased First Right Space shall be the terms and conditions of  this Lease (provided that all provisions of the Lease which vary based upon the Rentable Area of the Premises shall  be adjusted to reflect the addition of the Leased First Right Space to the Premises) and (d) Landlord and Tenant shall  reasonably promptly thereafter execute an amendment to this Lease for such Leased First Right Space upon the terms  and conditions as set forth in the First Offer Notice, subject to the provisions of this Schedule.    3.2 The Monthly Base Rent payable by Tenant with respect to any Leased First Right Space  (the “ROFO Rent”) shall commence on the applicable First Right Commencement Date, and shall be equal to the  product of:  (a) the number of square feet of Rentable Area contained in such Leased First Right Space and (b) the  Current Market Rent for such Leased First Right Space as of the First Right Commencement Date, with such Current  Market Rent to otherwise be as defined in Paragraph 3 of Article 33 of the Lease.  If in the applicable Acceptance  Notice, Tenant expressly rejects Landlord’s determination of the Current Market Rent (and ROFO Rent) for the  applicable Leased First Right Space and the parties fail to agree on the Current Market Rent (and ROFO Rent) within  thirty (30) days after Tenant’s delivery of the Acceptance Notice, then the Current Market Rent (and ROFO Rent) for  such Leased First Right Space shall be determined in accordance with Paragraph 4 of Article 33 of the Lease, provided  that if the Current Market Rent (and ROFO Rent) for any Leased First Right Space shall not be determined as of the  First Right Commencement Date, the parties shall utilize the Current Market Rent submitted by Landlord to the  Deciding Appraiser pursuant to Paragraph 4 of Article 33 to determine the ROFO Rent for the applicable Leased First  Right Space, and if the Current Market Rent submitted by Tenant to the Deciding Appraiser pursuant to Paragraph 4  of Article 33 of the Lease shall be ultimately selected by the Deciding Appraiser, Tenant shall be given a credit against  ROFO Rent next due hereunder equal to the amount of any overpayment.  If Tenant fails, in the applicable Acceptance  Notice, to expressly reject Landlord’s determination of the Current Market Rate (and ROFO Rent) set forth in the  applicable First Offer Notice, then Tenant shall conclusively be deemed to have accepted Landlord’s determination  of the Current Market Rate (and ROFO Rent) for the applicable Leased First Right Space as set forth in the applicable  First Offer Notice.  Notwithstanding anything to the contrary herein, Tenant shall pay Tenant’s Percentage Share of  Operating Expenses and Taxes with respect to any Leased First Right Space in the same manner as set forth in the  Lease, and Tenant’s Percentage Share shall be increased to take into account the expansion of the Premises to include  such Leased First Right Space.  3.3 Notwithstanding any contrary provision of the Lease or this Schedule, for purposes of the  determination of the Current Market Rent under this Schedule, the reference in the definition of Current Market Rate  in Paragraph (3) of Article 33 of the Lease to “a term of five (5) years” shall be replaced with “a term equal to the  duration of the lease term for the Leased First Right Space”.    4. Delivery and Condition of Leased First Right Space; Delivery; Improvement. 4.1 Landlord shall endeavor to deliver the Leased First Right Space to Tenant on or before the  applicable Offered Space Scheduled Commencement Date (as identified in the applicable First Offer Notice);  provided, however, that if for any reason, Landlord is not in a position to so deliver such Leased First Right Space on  such date, Landlord shall not be in breach under this Lease and otherwise shall have no liability to Tenant so long as  Landlord uses commercially reasonable efforts to deliver such Leased First Right Space to Tenant as soon as  reasonably possible thereafter (provided that Tenant shall have no obligation with respect to the applicable Leased  First Right Space until Landlord actually delivers same).    

 

3  5. ROFO Requirements.   Notwithstanding anything to the contrary in this Lease:  (a) the Right of First Offer and all of the rights of Tenant under this Schedule are and shall be personal to Zillow Inc. (“Original  Tenant”) and any assignee of all of Tenant’s rights under the Lease that does not require Landlord’s consent under  Article 10.5 of the Lease (“Permitted Assignee”), are not transferable and may only be exercised by the Original  Tenant or a Permitted Assignee (and not by any other assignee or subtenant), and (b) Tenant’s rights and Landlord’s  obligations under this Schedule shall be applicable only on the condition that, at the applicable time, Original Tenant,  a Permitted Assignee and/or a subtenant that does not require Landlord’s consent under Article 10.5 of the Lease  (“Permitted Subtenant” and collectively with Permitted Assignee, a “Permitted Transferee”) then Occupies the entire  Premises.  In addition, notwithstanding anything to the contrary in this Schedule:  (i) Tenant’s rights and Landlord’s  obligations under this Schedule shall not be applicable at any time during which (A) there is a then-existing uncured  Event of Default by Tenant under this Lease or (B) there has been a Chronic Default by Tenant under the Lease, and  (ii) at the election of Landlord (in its sole and absolute discretion), if as of the date that Tenant’s lease of any Leased First Right Space would otherwise commence (A) there is a then-existing uncured Event of Default by Tenant under this Lease or (B) there has been a Chronic Default by Tenant under the Lease, then Landlord may cancel Tenant’s lease of the applicable Leased First Right Space by delivery of written notice thereof to Tenant. 

 

4  SCHEDULE 3  REMOVAL ITEMS – 29TH AND 30TH FLOORS   Furniture, trade fixtures and equipment  Floor core penetration infill, as necessary  Electric/low voltage desk whip decommissioning back to source  Low Voltage Cabling (horizontal & vertical riser)  Removal/Restoration of MDF room, partitions/dampers, and related MEP and F/LS equipment  CRAC units  Reconnect egress stairwell card readers to base-building access control systemDocument

     
Kemper Corporation 
Description of Capital Stock 

The following is a summary of the material terms and provisions of the capital stock of Kemper Corporation (“we,” “us,” “our,” “Kemper” or “Company”) and does not purport to be complete.  It is qualified by reference to our Restated Certificate of Incorporation (“Certificate of Incorporation”) and our amended and restated bylaws (“Bylaws”), each of which is incorporated by reference as an exhibit to our Annual Report on Form 10-K of which this Exhibit is a part (“Annual Report”), and by certain provisions of the General Corporation Law of the State of Delaware (“DGCL”). 
Our authorized capital stock consists of 100,000,000 shares of common stock, par value $.10 per share, and 20,000,000 shares of preferred stock, par value $.10 per share. No preferred stock is outstanding as of the date of the filing of the Annual Report. 
Voting Rights. Each holder of shares of our common stock is entitled to attend all special and annual meetings of our shareholders. The holders of our common stock have one vote for each share held on all matters voted upon by our shareholders, including the election of directors to our Board of Directors (“Board of Directors”). Other than the election of directors, if an action is to be taken by vote of our shareholders at a meeting of shareholders at which a quorum is present, it will be decided by a majority of the votes cast with respect to such matter, unless a different vote is required under our Certificate of Incorporation or the DGCL. In an election of directors at a meeting of shareholders at which a quorum is present, a nominee for director shall be elected to the Board of Directors if the votes cast for such nominee’s election exceed the votes cast against such nominee’s election, provided, however, in the event the number of nominees for director is greater than the number of directors to be elected, directors shall be elected by a plurality of the votes cast.
Dividends. Except for any preferential rights of holders of any preferred stock that may then be issued and outstanding and any other class or series of stock having a preference over the common stock, holders of our common stock are entitled to receive dividends as and when declared by our Board of Directors, from legally available funds.
Liquidation and Dissolution. In the event of our liquidation or dissolution, the holders of our common stock are entitled to receive ratably all assets available for distribution to shareholders after the payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock.
Other Rights. Holders of our common stock have no preemptive, subscription, redemption or conversion rights. The rights, preferences and privileges of holders of our common stock are subject to and may be adversely affected by the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

Listing. Our common stock is listed on the New York Stock Exchange, or the NYSE, under the symbol “KMPR.”
Transfer Agent and Registrar. The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.
Preferred Stock
Our Certificate of Incorporation authorizes our Board of Directors to issue up to 20,000,000 shares of preferred stock in one or more series, with such distinctive designation or title and in such number of shares as may be authorized by our Board of Directors. Our Board of Directors is authorized to prescribe the relative rights and preferences of each series, and the limitations applicable thereto, including but not limited to the following: (i) the voting powers, full, special, or limited, or no voting powers, of each such series; (ii) the rate, terms and conditions on which dividends will be paid, whether such dividends will be cumulative, and what preference such dividends shall have in relation to the dividends on other series or classes of stock; (iii) the rights, terms and conditions, if any, for conversion of such series of preferred stock into shares of other series or classes of stock; (iv) any right of the Company to redeem the shares of such series of preferred stock, and the price, time, and conditions of such redemption, including the provisions for any sinking fund; and (v) the rights of holders of such series of preferred stock in relation to the rights of other series and classes of stock upon the liquidation, dissolution or distribution of our assets. Unless otherwise provided by our Board of Directors, upon redemption or conversion, shares of preferred stock will revert to authorized but unissued shares and may be reissued as shares of any series of preferred stock.
Certain Statutory, Certificate of Incorporation and Bylaw Provisions Affecting Shareholders
Various provisions of our Certificate of Incorporation and Bylaws, the DGCL and state insurance laws could have the effect of delaying, deferring or discouraging another party from acquiring control of Kemper. These provisions, which are summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage, or could have the effect of encouraging, persons seeking to acquire control of Kemper to first negotiate with our Board of Directors.
The portions of the summary set forth below describing certain provisions of our Certificate of Incorporation and Bylaws is qualified in its entirety by reference to the provisions of our Certificate of Incorporation and Bylaws.
Certificate of Incorporation and Bylaw Provisions
Special Meetings of Shareholders. Our Certificate of Incorporation and Bylaws do not grant the shareholders the right to call a special meeting of shareholders. Under our Certificate of Incorporation and Bylaws, special meetings of shareholders may be called only by the Chairman of the Board of Directors or by a majority of the Board of Directors then in office.
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No Shareholder Action by Written Consent. Our Certificate of Incorporation also provides that shareholders may not take any action by written consent.
Advance Notice Requirements. Our Bylaws set forth advance notice procedures with regard to shareholder proposals relating to the nomination of candidates for election as directors or other business to be presented at meetings of shareholders. These procedures provide that notice of such shareholder proposals must be timely given in writing to the Secretary of Kemper prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be delivered to the Secretary at the principal executive offices of Kemper not less than 90 nor more than 120 days prior to the anniversary of the preceding year’s annual meeting. The notice must contain specified information concerning the person to be nominated or the business to be brought before the meeting and concerning the shareholder submitting the proposal. The advance notice requirement does not give the Board of Directors any power to approve or disapprove shareholder director nominations or proposals but may have the effect of precluding the consideration of such nominations or proposals at a meeting if the proper notice procedures are not followed.
Blank Check Preferred Stock. Our preferred stock could be deemed to have an anti-takeover effect in that, if a hostile takeover situation should arise, shares of preferred stock could be issued to purchasers sympathetic with our management or others in such a way as to render more difficult or to discourage a merger, tender offer, proxy contest, the assumption of control by a holder of a large block of our securities or the removal of incumbent management.
The effects of the issuance of one or more series of the preferred stock on the holders of our common stock could include:
▪reduction of the amount otherwise available for payments of dividends on common stock if dividends are payable on the series of preferred stock;
▪restrictions on dividends on our common stock if dividends on the series of preferred stock are in arrears;
▪dilution of the voting power of our common stock if the series of preferred stock has voting rights, including a possible “veto” power if the series of preferred stock has class voting rights;
▪dilution of the equity interest of holders of our common stock if the series of preferred stock is convertible, and is converted, into our common stock; and
▪restrictions on the rights of holders of our common stock to share in our assets upon liquidation until satisfaction of any liquidation preference granted to the holders of the series of preferred stock.
Business Combinations. Article Seven of our Certificate of Incorporation places certain restrictions on the following transactions with a direct or indirect beneficial owner (including 
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certain former beneficial owners and successors to such beneficial owners) of more than 15% of the voting power of Kemper’s outstanding voting stock (an “Interested Shareholder”):
▪any merger or consolidation of Kemper or any subsidiary with any Interested Shareholder or any other person (whether or not itself an Interested Shareholder) which is, or after such merger or consolidation would be, an affiliate of an Interested Shareholder; or
▪any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions) to or with any Interested Shareholder or any affiliate of any Interested Shareholder of any assets of Kemper or any subsidiary having an aggregate fair market value of $10,000,000 or more; or
▪the issuance or transfer by Kemper or any subsidiary (in one transaction or a series of transactions) of any securities of Kemper or any subsidiary to any Interested Shareholder or any affiliate of any Interested Shareholder in exchange for cash, securities or other property (or a combination thereof) having an aggregate fair market value of $10,000,000 or more; or
▪the adoption of any plan or proposal for the liquidation or dissolution of Kemper proposed by or on behalf of any Interested Shareholder or any affiliate of any Interested Shareholder; or
▪any reclassification of securities (including any reverse stock split or recapitalization of Kemper) or any merger or consolidation of Kemper with any of its subsidiaries or any other transaction (whether or not with or into or otherwise involving any Interested Shareholder) which has the effect, directly or indirectly, of increasing the proportionate share of the outstanding shares of any class of equity or convertible securities of Kemper or any subsidiary beneficially owned by any Interested Shareholder or any affiliate of any Interested Shareholder.
We may only enter into one of the transactions described above if:
▪the transaction has been approved by a majority of our “continuing directors,” being (A) members of our original Board of Directors, (B) persons unaffiliated with an Interested Shareholder who were members of the Board of Directors prior to such person or entity becoming an Interested Shareholder, or (C) successors of continuing directors who were recommended to succeed continuing directors by a majority of continuing directors then on the Board of Directors; or
▪the transaction has been approved by the affirmative vote of 75% of the voting power of our outstanding voting stock, voting together as a single class, and (A) the consideration to be received by the holders of each class or series of our capital stock is (i) not less than the highest price paid by the Interested Shareholder for any shares of such class or series during the preceding 24 months, and (ii) is either in cash or in the form of consideration previously used by the Interested Shareholder 
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to acquire the largest number of shares of such class or series previously acquired by such Interested Shareholder, and (B) certain other conditions have been met.
Exclusive Forum Provision. Our Bylaws provide that, unless we consent to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed to us or our shareholders by any of our directors, officers or other employees or agents, (iii) any action asserting a claim against us or any of our directors or officers or other employees or agents arising pursuant to any provision of the DGCL or our Certificate of Incorporation or Bylaws, or (iv) any action asserting a claim against us or any of our directors or officers or other employees or agents governed by the internal affairs doctrine, shall be the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have jurisdiction, another court of the State of Delaware or, if no court of the State of Delaware has jurisdiction, the federal district court for the District of Delaware), in all cases subject to the court having personal jurisdiction over the indispensable parties named as defendants.
Business Combination Statute
We are a Delaware corporation and consequently are also subject to certain anti-takeover provisions of the DGCL. Subject to certain exceptions, Section 203 of the DGCL prevents a publicly held Delaware corporation from engaging in a “business combination” with any “interested stockholder” for three years following the date that the person became an interested stockholder, unless the interested stockholder attained such status with the approval of the corporation’s board of directors or unless the business combination is approved in a prescribed manner. A “business combination,” in reference to Kemper, includes, among other things, a merger or consolidation of Kemper or one of its subsidiaries and an interested stockholder or the sale by Kemper or any of its subsidiaries to an interested stockholder of assets having an aggregate market value equal to 10% or more of either the aggregate market value of Kemper’s consolidated assets or the aggregate market value of Kemper’s outstanding stock. In general, in relation to Kemper, an “interested stockholder” is any person that is the owner of 15% or more of Kemper’s outstanding voting stock and the affiliates and associates of such person. Section 203 makes it more difficult for an interested stockholder to effect various business combinations with a corporation for a three-year period. This statute could prohibit or delay mergers or other takeover or change in control attempts not approved in advance by our Board of Directors, and as a result could discourage attempts to acquire Kemper, which could depress the market price of our common stock.
Change in Control Requirements Under Insurance Laws
State insurance laws impose requirements that must be met prior to a change of control of an insurance company or insurance holding company based on the insurer’s state of domicile and, in some cases, additional states in which it is deemed commercially domiciled due to the substantial amount of business it conducts therein. These requirements may include the advance filing of specific information with the state insurance regulators, a public hearing on the matter, and the review and approval of the change of control by such regulators. In the majority of states in which Kemper’s insurance subsidiaries are domiciled or deemed 
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commercially domiciled, “control” is generally presumed to exist through the direct or indirect ownership of 10% or more of the voting securities of an insurance company. In Alabama, where Kemper also has insurance subsidiaries, control is presumed to exist with a 5% or more ownership interest in such securities. Any purchase of Kemper’s shares that would result in the purchaser owning Kemper’s voting securities in the foregoing percentages for the states indicated would be presumed to result in the acquisition of control of Kemper’s insurance subsidiaries in those states. Therefore, acquisitions subject to the 10% threshold generally would require the prior approval of insurance regulators in each state in which the Company’s insurance subsidiaries are domiciled or deemed commercially domiciled, including those in Alabama, while acquisitions subject to the 5% threshold generally would require the prior approval of only Alabama regulators. Similarly, several of the states in which the Company’s insurance subsidiaries are domiciled have enacted legislation that requires either the divesting and/or acquiring company to notify regulators of, and in some cases to receive regulatory approval for, a change in control.
Many state statutes also require pre-acquisition notification to state insurance regulators of a change of control of an insurance company licensed in the state if specific market concentration thresholds would be triggered by the acquisition. Such statutes authorize the issuance of a cease and desist order with respect to the insurance company if certain conditions, such as undue market concentration, would result from the acquisition.
These regulatory requirements may deter, delay or prevent transactions affecting control of Kemper or its insurance subsidiaries, or the ownership of Kemper’s voting securities, including transactions that could be advantageous to Kemper’s shareholders.
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