Document:

The Company's 2001 Stock Incentive Plan

 Exhibit 10.1 
  
 MAGMA DESIGN AUTOMATION, INC. 
  

2001 STOCK INCENTIVE PLAN 
  
 (Adopted by the Board on May 4, 2001, and Amended as approved by the stockholders at the Annual Meeting of Stockholders on August 29, 2003) 
  
  

 TABLE OF CONTENTS 
  

	 	  	Page

	 SECTION 1. ESTABLISHMENT AND PURPOSE
	  	1
		
	 SECTION 2. DEFINITIONS
	  	1
	 (a)
	  	Affiliate”	  	1
	 (b)
	  	“Award”	  	1
	 (c)
	  	“Board of Directors”	  	1
	 (d)
	  	“Change in Control”	  	1
	 (e)
	  	“Code”	  	3
	 (f)
	  	“Committee”	  	3
	 (g)
	  	“Company”	  	3
	 (h)
	  	“Consultant”	  	3
	 (i)
	  	“Employee”	  	3
	 (j)
	  	“Exchange Act”	  	3
	 (k)
	  	“Exercise Price”	  	3
	 (l)
	  	“Fair Market Value”	  	3
	 (m)
	  	“ISO”	  	4
	 (n)
	  	“Nonstatutory Option” or “NSO”	  	4
	 (o)
	  	“Offeree”	  	4
	 (p)
	  	“Option”	  	4
	 (q)
	  	“Optionee”	  	4
	 (r)
	  	“Outside Director”	  	4
	 (s)
	  	“Parent”	  	4
	 (t)
	  	“Participant”	  	4
	 (u)
	  	“Plan”	  	4
	 (v)
	  	“Purchase Price”	  	4
	 (w)
	  	“Restricted Share”	  	4
	 (x)
	  	“Restricted Share Agreement”	  	5
	 (y)
	  	“SAR”	  	5
	 (z)
	  	“SAR Agreement”	  	5
	 (aa)
	  	“Service”	  	5
	 (bb)
	  	“Share”	  	5
	 (cc)
	  	“Stock”	  	5
	 (dd)
	  	“Stock Option Agreement”	  	5
	 (ee)
	  	“Stock Purchase Agreement”	  	5
	 (ff)
	  	“Stock Unit”	  	5
	 (gg)
	  	“Stock Unit Agreement”	  	5
	 (hh)
	  	“Subsidiary”	  	5
	 (ii)
	  	“Total and Permanent Disability”	  	5
		
	 SECTION 3. ADMINISTRATION
	  	5
	 (a)
	  	Committee Composition	  	5
	 (b)
	  	Committee for Non-Officer Grants	  	6

  

 -i- 

	 (c)
	  	Committee Procedures	  	6
	 (d)
	  	Committee Responsibilities	  	6
		
	 SECTION 4. ELIGIBILITY
	  	7
	 (a)
	  	General Rule	  	7
	 (b)
	  	Outside Directors	  	7
	 (c)
	  	Ten–Percent Stockholders	  	10
	 (d)
	  	Attribution Rules	  	10
	 (e)
	  	Outstanding Stock	  	10
		
	 SECTION 5. STOCK SUBJECT TO PLAN
	  	10
	 (a)
	  	Basic Limitation	  	10
	 (b)
	  	Annual Increase in Shares	  	10
	 (c)
	  	Additional Shares	  	11
	 (d)
	  	Dividend Equivalents	  	11
		
	 SECTION 6. RESTRICTED SHARES
	  	11
	 (a)
	  	Restricted Stock Agreement	  	11
	 (b)
	  	Payment for Awards	  	11
	 (c)
	  	Vesting	  	11
	 (d)
	  	Voting and Dividend Rights	  	11
		
	 SECTION 7. OTHER TERMS AND CONDITIONS OF AWARDS OR SALES
	  	12
	 (a)
	  	Duration of Offers and Nontransferability of Rights	  	12
	 (b)
	  	Withholding Taxes	  	12
	 (c)
	  	Restrictions on Transfer of Shares	  	12
		
	 SECTION 8. TERMS AND CONDITIONS OF OPTIONS
	  	12
	 (a)
	  	Stock Option Agreement	  	12
	 (b)
	  	Number of Shares	  	12
	 (c)
	  	Exercise Price	  	12
	 (d)
	  	Withholding Taxes	  	13
	 (e)
	  	Exercisability and Term	  	13
	 (f)
	  	Nontransferability	  	13
	 (g)
	  	Exercise of Options Upon Termination of Service	  	13
	 (h)
	  	Effect of Change in Control	  	13
	 (i)
	  	Leaves of Absence	  	14
	 (j)
	  	No Rights as a Stockholder	  	14
	 (k)
	  	Modification, Extension and Renewal of Options	  	14
	 (l)
	  	Restrictions on Transfer of Shares	  	14
	 (m)
	  	Buyout Provisions	  	14
		
	 SECTION 9. PAYMENT FOR SHARES
	  	14
	 (a)
	  	General Rule	  	14
	 (b)
	  	Surrender of Stock	  	14
	 (c)
	  	Services Rendered	  	15
	 (d)
	  	Cashless Exercise	  	15

  

 -ii- 

	 (e)
	  	Exercise/Pledge	  	15
	 (f)
	  	Promissory Note	  	15
	 (g)
	  	Other Forms of Payment	  	15
		
	 SECTION 10. STOCK APPRECIATION RIGHTS
	  	15
	 (a)
	  	SAR Agreement	  	15
	 (b)
	  	Number of Shares	  	15
	 (c)
	  	Exercise Price	  	16
	 (d)
	  	Exercisability and Term	  	16
	 (e)
	  	Effect of Change in Control	  	16
	 (f)
	  	Exercise of SARs	  	16
	 (g)
	  	Special Holding Period	  	16
	 (h)
	  	Special Exercise Window	  	16
	 (i)
	  	Modification or Assumption of SARs	  	17
		
	 SECTION 11. STOCK UNITS.
	  	17
	 (a)
	  	Stock Unit Agreement	  	17
	 (b)
	  	Payment for Awards	  	17
	 (c)
	  	Vesting Conditions	  	17
	 (d)
	  	Voting and Dividend Rights	  	17
	 (e)
	  	Form and Time of Settlement of Stock Units	  	17
	 (f)
	  	Death of Recipient	  	18
	 (g)
	  	Creditors’ Rights	  	18
		
	 SECTION 12. ADJUSTMENT OF SHARES
	  	18
	 (a)
	  	Adjustments	  	18
	 (b)
	  	Dissolution or Liquidation	  	19
	 (c)
	  	Reorganizations	  	19
	 (d)
	  	Reservation of Rights	  	19
		
	 SECTION 13. DEFERRAL OF AWARDS
	  	19
		
	 SECTION 14. AWARDS UNDER OTHER PLANS
	  	20
		
	 SECTION 15. PAYMENT OF DIRECTOR’S FEES IN SECURITIES.
	  	20
	 (a)
	  	Effective Date	  	20
	 (b)
	  	Elections to Receive NSOs, Restricted Shares or Stock Units	  	20
	 (c)
	  	Number and Terms of NSOs, Restricted Shares or Stock Units	  	20
		
	 SECTION 16. LEGAL AND REGULATORY REQUIREMENTS
	  	20
		
	 SECTION 17. WITHHOLDING TAXES
	  	21
	 (a)
	  	General	  	21
	 (b)
	  	Share Withholding	  	21
		
	 SECTION 18. LIMITATION ON PARACHUTE PAYMENTS
	  	21
	 (a)
	  	Scope of Limitation	  	21
	 (b)
	  	Basic Rule	  	21

  

 -iii- 

	 (c)
	  	Reduction of Payments	  	21
	 (d)
	  	Overpayments and Underpayments	  	22
	 (e)
	  	Related Corporations	  	22
		
	 SECTION 19. NO EMPLOYMENT RIGHTS
	  	22
		
	 SECTION 20. DURATION AND AMENDMENTS
	  	22
	 (a)
	  	Term of the Plan	  	22
	 (b)
	  	Right to Amend or Terminate the Plan	  	22
	 (c)
	  	Effect of Amendment or Termination	  	23
		
	 SECTION 21. EXECUTION
	  	23

  

 -iv- 

  
 MAGMA DESIGN AUTOMATION,
INC. 
  
 2001 STOCK INCENTIVE PLAN 
  
 
SECTION 1. ESTABLISHMENT AND PURPOSE. 
  
 The Plan was adopted by the Board of Directors on May 4, 2001. The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants
to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to
stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of Restricted Shares, Stock Units, Options (which may constitute incentive stock options or nonstatutory stock
options) or stock appreciation rights. 
  
 
SECTION 2. DEFINITIONS. 
  
 (a)
“
Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one of more Subsidiaries own not less than 50% of such entity. 
  
 (b) “
Award” shall mean any award of an Option, a SAR, a Restricted Share or a Stock Unit under the Plan. 
  
 (c) “
Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 
  
 (d) “
Change in Control” shall mean the occurrence of any of the following events: 
  
 (i) A change in the composition of the Board of Directors occurs, as a result of which fewer than two-thirds of the incumbent directors
are directors who either: 
  
 (A) Had been
directors of the Company on the “look-back date” (as defined below) (the “original directors”); or 
  
 (B) Were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the aggregate
of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved (the “continuing directors”); or 
  
 (ii) Any “person” (as defined below) who by the
acquisition or aggregation of securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of
the 
  

 -1- 

 Company’s then outstanding securities ordinarily (and apart from rights accruing under special
circumstances) having the right to vote at elections of directors (the “Base Capital Stock”); except that any change in the relative beneficial ownership of the Company’s securities by any person resulting solely from a reduction in
the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person’s
beneficial ownership of any securities of the Company; 
  
 (iii) The consummation of a merger or consolidation of the Corporation with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or
other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent
corporation of such continuing or surviving entity; 
  
 (iv) The sale, transfer or other disposition of all or substantially all of the Company’s assets; 
  
 (v) Both: 
  
 (A) Any “person” (as defined below) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s Base Capital Stock; except that any change in the relative beneficial ownership of the Company’s securities
by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any
manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company; and 
  
 (B) The beneficial ownership by such person of securities representing such percentage has not been approved by a majority of the
continuing directors. 
  
 For purposes of subsection (d)(i) above,
the term “look-back” date shall mean the later of (1) May 4, 2001 or (2) the date 24 months prior to the date of the event that may constitute a Change in Control. 
  
 For purposes of subsections (d)(ii) and (v) above, the term “person” shall have the same meaning as when used in
Sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a corporation owned directly or indirectly
by the stockholders of the Company in substantially the same proportions as their ownership of the Stock. 
  

 -2- 

 Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in
Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before
such transaction. 
  
 (e) “
Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (f) “
Committee” shall mean the committee designated by the Board of Directors, which is authorized to administer the Plan, as described in Section 3 hereof. 
  
 (g) “
Company” shall mean MAGMA DESIGN AUTOMATION, INC., a Delaware corporation. 
  
 (h) “
Consultant” shall mean a consultant or advisor who provides bona fide services to the Company, a Parent, a Subsidiary or an Affiliate as an independent contractor or a member of the board of directors of a Parent or a
Subsidiary who is not an Employee. Service as a Consultant shall be considered Service for all purposes of the Plan. 
  
 (i) “
Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 
  
 (j) “
Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (k) “
Exercise Price” shall mean, in the case of an Option, the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise
Price,” in the case of a SAR, shall mean an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable upon exercise of such SAR. 
  
 (l) “
Fair Market Value” with respect to a Share, shall mean the market price of one Share of Stock, determined by the Committee as follows: 
  
 (i) If the Stock was traded over-the-counter on the date in question but was not traded on The Nasdaq Stock
Market, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or, if not so quoted, shall be equal to the mean between the last reported representative bid and asked prices quoted for
such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on any such system, by the “Pink Sheets” published by the National Quotation Bureau, Inc.; 
  
 (ii) If the Stock was traded on The Nasdaq Stock Market,
then the Fair Market Value shall be equal to the last reported sale price quoted for such date by The Nasdaq Stock Market; 
  

 -3- 

 (iii) If the Stock was traded on a United States stock exchange on the date in question,
then the Fair Market Value shall be equal to the closing price reported for such date by the applicable composite-transactions report; and 
  
 (iv) If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on
such basis as it deems appropriate. 
  
 In all cases, the determination of Fair
Market Value by the Committee shall be conclusive and binding on all persons. 
  
 (m) “
ISO” shall mean an employee incentive stock option described in Section 422 of the Code. 
  
 (n) “
Nonstatutory Option” or “NSO” shall mean an employee stock option that is not an ISO. 
  
 (o) “
Offeree” shall mean an individual to whom the Committee has offered the right to acquire Shares under the Plan (other than upon exercise of an Option). 
  
 (p) “
Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
  
 (q) “
Optionee” shall mean an individual or estate who holds an Option or SAR. 
  
 (r) “
Outside Director” shall mean a member of the Board of Directors who is not a common-law employee of the Company, a Parent or a Subsidiary. Service as an Outside Director shall be considered Service for all purposes of
the Plan, except as provided in the second sentence of Section 4(a). 
  
 (s) “
Parent” shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing as of such date. 

 
 (t) “
Participant” shall mean an individual or estate who holds an Award. 
  
 (u) “
Plan” shall mean this 2001 Stock Incentive Plan of MAGMA DESIGN AUTOMATION, INC., as amended from time to time. 
  
 (v) “
Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Committee. 
  
 (w) “
Restricted Share” shall mean a Share awarded under the Plan. 
  

 -4- 

 (x) “
Restricted Share Agreement” shall mean the agreement between the Company and the recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to such Restricted Shares. 

 
 (y) “
SAR” shall mean a stock appreciation right granted under the Plan. 
  
 (z) “
SAR Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to his or her SAR. 
  
 (aa) “
Service” shall mean service as an Employee, Consultant or Outside Director. 
  
 (bb) “
Share” shall mean one share of Stock, as adjusted in accordance with Section 9 (if applicable). 
  
 (cc) “
Stock” shall mean the Common Stock of the Company. 
  
 (dd) “
Stock Option Agreement” shall mean the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his Option. 
  
 (ee) “
Stock Purchase Agreement” shall mean the agreement between the Company and an Offeree who acquires Shares under the Plan that contains the terms, conditions and restrictions pertaining to the acquisition of such
Shares. 
  
 (ff) “
Stock Unit” shall mean a bookkeeping entry representing the equivalent of one Share, as awarded under the Plan. 
  
 (gg) “
Stock Unit Agreement” shall mean the agreement between the Company and the recipient of a Stock Unit which contains the terms, conditions and restrictions pertaining to such Stock Unit. 
  
 (hh) “
Subsidiary” shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50% of the total combined voting power of all classes of outstanding stock of such corporation. A
corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
  
 (ii) “
Total and Permanent Disability” shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result
in death or that has lasted, or can be expected to last, for a continuous period of not less than 12 months. 
  
 
SECTION 3. ADMINISTRATION. 
  
 (a)

Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist of two or more directors of the Company, who shall be appointed by the Board. In addition, the composition of the
Committee shall satisfy 
  

 -5- 

 (i) such requirements as the Securities and Exchange Commission may establish for
administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and 
  
 (ii) such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for
exemption under Section 162(m)(4)(C) of the Code. 
  
 (b) 
Committee for Non-Officer Grants. The Board may also appoint one or more separate committees of the Board, each composed of one or more directors of the Company who need not satisfy the requirements of Section 3(a), who
may administer the Plan with respect to Employees who are not considered officers or directors of the Company under Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of such grants. Within
the limitations of the preceding sentence, any reference in the Plan to the Committee shall include such committee or committees appointed pursuant to the preceding sentence. 
  
 (c) 
Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings at such times and places as it shall determine. The acts of a majority of
the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid acts of the Committee. 
  
 (d) 
Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to take the following actions: 
  
 (i) To interpret the Plan and to apply its provisions; 
  
 (ii) To adopt, amend or rescind rules, procedures and forms
relating to the Plan; 
  
 (iii) To authorize any
person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan; 
  
 (iv) To determine when Shares are to be awarded or offered for sale and when Options are to be granted under the Plan; 
  
 (v) To select the Offerees and Optionees; 
  
 (vi) To determine the number of Shares to be offered to each
Offeree or to be made subject to each Option; 
  
 (vii) To prescribe the terms and conditions of each award or sale of Shares, including (without limitation) the Purchase Price, the vesting of the award (including accelerating the vesting of awards) and to specify the provisions of the
Stock Purchase Agreement relating to such award or sale; 
  
  

 -6- 

  
 (viii) To
prescribe the terms and conditions of each Option, including (without limitation) the Exercise Price, the vesting or duration of the Option (including accelerating the vesting of the Option), to determine whether such Option is to be classified as
an ISO or as a Nonstatutory Option, and to specify the provisions of the Stock Option Agreement relating to such Option; 
  
 (ix) To amend any outstanding Stock Purchase Agreement or Stock Option Agreement, subject to applicable legal restrictions and to the
consent of the Offeree or Optionee who entered into such agreement; 
  
 (x) To prescribe the consideration for the grant of each Option or other right under the Plan and to determine the sufficiency of such consideration; 
  
 (xi) To determine the disposition of each Option or other right under the Plan in the event of an
Optionee’s or Offeree’s divorce or dissolution of marriage; 
  
 (xii) To determine whether Options or other rights under the Plan will be granted in replacement of other grants under an incentive or other compensation plan of an acquired business; 
  
 (xiii) To correct any defect, supply any omission, or
reconcile any inconsistency in the Plan, any Stock Option Agreement or any Stock Purchase Agreement; and 
  
 (xiv) To take any other actions deemed necessary or advisable for the administration of the Plan. 
  
 Subject to the requirements of applicable law, the Committee may designate persons other than
members of the Committee to carry out its responsibilities and may prescribe such conditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or
the granting of Options or other rights under the Plan to persons subject to Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all Offerees, all Optionees, and all persons
deriving their rights from an Offeree or Optionee. No member of the Committee shall be liable for any action that he has taken or has failed to take in good faith with respect to the Plan, any Option, or any right to acquire Shares under the Plan.

  
 
SECTION 4. ELIGIBILITY 
 . 
 (a) 
General Rule. Only Employees shall be eligible for the grant of ISOs. Only Employees, Consultants and Outside Directors shall be eligible for the grant of Restricted Shares, Stock Units, NSOs or SARs, and grants to
Outside Directors shall comply with the provisions of Section 4(b). 
  
 (b) 
Outside Directors. Any other provision of the Plan notwithstanding, the participation of Outside Directors in the Plan shall be subject to the following restrictions: 
  

 -7- 

 (i) Outside Directors shall only be eligible for the grant of Restricted Shares, Stock
Units, Nonstatutory Options and SARs. 
  
 (ii)
Each Outside Director who first joins the Board of Directors after the date of adoption of the Plan shall receive a Nonstatutory Option, subject to approval of the Plan by the Company’s stockholders, to purchase fifty thousand (50,000) Shares
(subject to adjustment under Section 12) on the first business day after his or her election to the Board of Directors. 
  
 (iii) On the first business day following the conclusion of each regular annual meeting of the Company’s stockholders after such
Outside Director’s appointment or election to the Board of Directors, commencing with the annual meeting occurring after the adoption of the Plan, each Outside Director who will continue serving as a member of the Board of Directors thereafter
shall receive an Option to purchase twenty thousand (20,000) Shares, subject to adjustment under Section 12. Each Outside Director who is not initially elected at a regular annual meeting of the Company’s stockholders shall receive an Option to
purchase a pro rata portion of twenty thousand (20,000) Shares within ten business days of his or her election based on the number of full months remaining from date of election until the next regular annual meeting of the Company’s
stockholders divided by 12. Any fractional shares resulting from such calculation shall be rounded up to the nearest whole number. 
  
 (iv) The Exercise Price of all Nonstatutory Options granted to an Outside Director under this Section 4(b) shall be equal to 100% of the
Fair Market Value of a Share on the date of grant, payable in one of the forms described in Section 9(a), (b) and (d). 
  
 (v) 
  
 (A) The vesting schedule for the Shares subject to each Option granted under Section 4(b)(ii) shall be as follows. Twenty-five percent
(25%) of the Shares subject to each Option granted under Section 4(b)(ii) shall become exercisable on the first anniversary of the date of grant. The balance of the Shares subject to each Option (i.e., the remaining seventy-five percent (75%))
granted under Section 4(b)(ii) shall become exercisable monthly over a three-year period beginning on the date which is one month after the first anniversary of the date of grant. Accordingly, the balance of the Shares shall vest, from and after the
date, which is one month after the first anniversary of the date of grant, at a monthly rate of 2.08333% of the total number of Shares subject to such Options. 
  

(B) The vesting schedule for the Shares subject to each Option granted under Section 4(b)(iii) shall be as follows. One hundred percent
(100%) of the Shares subject to each Option granted under Section 4(b)(iii) shall become exercisable on the day immediately prior to the 
  

 -8- 

 annual meeting of stockholders in the year immediately following the year of grant. 
  
 (C) Notwithstanding the
foregoing, each Option shall become exercisable in full (100%) in the event that a Change in Control occurs with respect to the Company. 
  
 (vi) Subject to Sections 4(b)(vii) and (viii), all Nonstatutory Options granted to an Outside Director under this Section 4(b) shall
terminate on the tenth anniversary of the date of grant of such Options. 
  
 (vii) If an Optionee’s Service terminates for any reason other than death, then his or her Options shall expire on the earliest of the following occasions: 
  
 (A) The expiration date determined pursuant to Section
4(b)(vi) above; 
  
 (B) The date six months after
the termination of the Optionee’s Service, if the termination occurs because of his or her Total and Permanent Disability; or 
  
 (C) The date three months after the termination of the Optionee’s Service for any reason other than Total and Permanent Disability.

  
 The Optionee may exercise all or part of his or her Options at any time
before the expiration of such Options under the preceding sentence, but only to the extent that such Options had become exercisable before his or her Service terminated. The balance of such Options shall lapse when the Optionee’s Service
terminates. In the event that the Optionee dies after the termination of his or her Service but before the expiration of his or her Options, all or part of such Options may be exercised at any time prior to their expiration by the executors or
administrators of the Optionee’s estate or by any person who has acquired such Options directly from him or her by bequest, inheritance or beneficiary designation under the Plan, but only to the extent that such Options had become exercisable
before his or her Service terminated. 
  
 (viii)
If an Optionee dies while he or she is in Service, then his or her Options shall expire on the earlier of the following dates: 
  
 (A) The expiration date determined pursuant to Section 4(b)(vi) above; or 
  

 -9- 

 (B) The date six months after his or her death. 
  
 All or part of the Optionee’s Options may be exercised at any time
before the expiration of such Options under the preceding sentence by the executors or administrators of his or her estate or by any person who has acquired such Options directly from him or her by bequest, inheritance or beneficiary designation
under the Plan. 
  
 (ix) No Option shall be
transferable by the Optionee other than by will, by written beneficiary designation or by the laws of descent and distribution. An Option may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or
legal representative. No Option or interest therein may be transferred, assigned, pledged or hypothecated by the Optionee during his or her lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar
process. 
  
 (c) 
Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible for the grant of an ISO
unless such grant satisfies the requirements of Section 422(c)(6) of the Code. 
  
 (d) 
Attribution Rules. For purposes of Section 4(d) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers, sisters,
spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its stockholders, partners or beneficiaries. 
  
 (e) 
Outstanding Stock. For purposes of Section 4(d) above, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant. “Outstanding stock” shall not
include shares authorized for issuance under outstanding options held by the Employee or by any other person. 
  
 
SECTION 5. STOCK SUBJECT TO PLAN 
  
 (a) 
Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares. The maximum aggregate number of Options, SARs, Stock Units and Restricted Shares awarded under the Plan
shall not exceed Two Million (2,000,000) Shares, plus the additional Shares described in Sections (b) and (c). The limitation of this Section 5(a) shall be subject to adjustment pursuant to Section 12. 
  
 (b) 
Annual Increase in Shares. As of January 1 of each year, commencing with the year 2002, the aggregate number of Options, SARs, Stock Units and Restricted Shares that may be awarded under the Plan shall automatically
increase by a number equal to the lesser of (i) Six Million (6,000,000) shares, (ii) six percent (6%) of the fully diluted outstanding shares of Stock of the Company on such date or (iii) a lesser amount determined by the Board. The aggregate number
of Shares that may be issued under the Plan shall at all times be subject to adjustment pursuant to Section 12. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of
Shares which then remain 
  

 -10- 

 available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep
available sufficient Shares to satisfy the requirements of the Plan. 
  
 (c) 
Additional Shares. If Restricted Shares or Shares issued upon the exercise of Options are forfeited, then such Shares shall again become available for Awards under the Plan. If Stock Units, Options or SARs are
forfeited or terminate for any other reason before being exercised, then the corresponding Shares shall again become available for Awards under the Plan. If Stock Units are settled, then only the number of Shares (if any) actually issued in
settlement of such Stock Units shall reduce the number available under Section 5(a) and the balance shall again become available for Awards under the Plan. If SARs are exercised, then only the number of Shares (if any) actually issued in settlement
of such SARs shall reduce the number available in Section 5(a) and the balance shall again become available for Awards under the Plan. The foregoing notwithstanding, the aggregate number of Shares that may be issued under the Plan upon the exercise
of ISOs shall not be increased when Restricted Shares or other Shares are forfeited. 
  
 (d) 
Dividend Equivalents. Any dividend equivalents paid or credited under the Plan shall not be applied against the number of Restricted Shares, Stock Units, Options or SARs available for Awards, whether or not such
dividend equivalents are converted into Stock Units. 
  
 
SECTION 6. RESTRICTED SHARES. 
  
 (a) 
Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all
applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. 
  
 (b)
Payment for Awards. Subject to the following sentence, Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) cash, cash
equivalents, full-recourse promissory notes, past services and future services. To the extent that an Award consists of newly issued Restricted Shares, the Award recipient shall furnish consideration with a value not less than the par value of such
Restricted Shares in the form of cash, cash equivalents, or past services rendered to the Company (or a Parent or Subsidiary), as the Committee may determine. 
  

(c) 
Vesting. Each Award of Restricted Shares may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. A
Restricted Stock Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares of thereafter, that all or
part of such Restricted Shares shall become vested in the event that a Change in Control occurs with respect to the Company. 
  
 (d) 
Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock Agreement,
however, may require that the holders of Restricted Shares invest 
  

 -11- 

 any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the
same conditions and restrictions as the Award with respect to which the dividends were paid. 
  
 
SECTION 7. OTHER TERMS AND CONDITIONS OF AWARDS OR SALES. 
  
 (a) 
Duration of Offers and Nontransferability of Rights. Any right to acquire Shares under the Plan (other than an Option) shall automatically expire if not exercised by the Offeree 30 days after the grant of such right
was communicated to him by the Committee. Such right shall not be transferable and shall be exercisable only by the Offeree to whom such right was granted. 
  
 (b) 
Withholding Taxes. As a condition to the purchase of Shares, the Offeree shall make such arrangements as the Committee may require for the satisfaction of any federal, state or local withholding tax obligations that
may arise in connection with such purchase. 
  
 (c)
Restrictions on Transfer of Shares. Any Shares awarded or sold under the Plan shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as
the Committee may determine. Such restrictions shall be set forth in the applicable Stock Purchase Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 
  
 
SECTION 8. TERMS AND CONDITIONS OF OPTIONS. 
  
 (a)
Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions
of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Agreement. The Stock Option Agreement shall specify whether the
Option is an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in the Optionee’s other compensation. A Stock Option
Agreement may provide that a new Option will be granted automatically to the Optionee when he or she exercises a prior Option and pays the Exercise Price in a form described in Section 9(b). 
  
 (b) 
Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 12. Options granted to an
Optionee in a single fiscal year of the Company shall not cover more than One Million (1,000,000) Shares, subject to adjustment in accordance with Section 12. 
  

(c) 
Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as otherwise
provided in Section 4(d), and the Exercise Price of an NSO shall not be less than the par value of the Shares subject to such NSO. Subject to the foregoing in this Section 8(c), the Exercise Price under any Option shall be determined by the
Committee at its sole discretion. The Exercise Price shall be payable in one of the forms described in Section 9. 
  

 -12- 

 (d) 
Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state or local withholding tax obligations
that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any federal, state or local withholding tax obligations that may arise in connection with the
disposition of Shares acquired by exercising an Option. 
  
 (e)

Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option;
provided that the term of an ISO shall in no event exceed 10 years from the date of grant (five years for Employees described in Section 4(d)). A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s
death, disability, or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s service. Options may be awarded in combination with SARs, and such an Award may
provide that the Options will not be exercisable unless the related SARs are forfeited. Subject to the foregoing in this Section 8(e), the Committee at its sole discretion shall determine when all or any installment of an Option is to become
exercisable and when an Option is to expire. 
  
 (f) 
Nontransferability. During an Optionee’s lifetime, his or her Option(s) shall be exercisable only by the Optionee and shall not be transferable. In the event of an Optionee’s death, his or her Option(s)
shall not be transferable other than by will or by the laws of descent and distribution. 
  
 (g) 
Exercise of Options Upon Termination of Service. Each Stock Option Agreement shall set forth the extent to which the Optionee shall have the right to exercise the Option following termination of the Optionee’s
Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Optionee’s estate or any person who has acquired such Option(s) directly from the Optionee by bequest or inheritance.
Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. 
  
 (h) 
Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option in the event
that a Change in Control occurs with respect to the Company, subject to the following limitations: 
  
 (i) In the case of an ISO, the acceleration of exercisability shall not occur without the Optionee’s written consent. 
  
 (ii) If the Company and the other party to the transaction
constituting a Change in Control agree that such transaction is to be treated as a “pooling of interests” for financial reporting purposes, and if such transaction in fact is so treated, then the acceleration of exercisability shall not
occur to the extent that the Company’s independent accountants and such other party’s independent 
  

 -13- 

 accountants separately determine in good faith that such acceleration would preclude the use of
“pooling of interests” accounting. 
  
 (i) 
Leaves of Absence. An Employee’s Service shall cease when such Employee ceases to be actively employed by, or a consultant or adviser to, the Company (or any subsidiary) as determined in the sole discretion of
the Board of Directors. For purposes of Options, Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the Company in writing, if the terms of the leave provide for continued service crediting, or
when continued service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to ISO status, an Employee’s Service will be treated as terminating 90 days after such Employee went on leave,
unless such Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave ends, unless such Employee immediately returns to active work. The Company determines which
leaves count toward Service, and when Service terminates for all purposes under the Plan. 
  
 (j) 
No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by his Option until the date of the issuance of a stock certificate
for such Shares. No adjustments shall be made, except as provided in Section 12. 
  
 (k) 
Modification, Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding options (to the extent
not previously exercised), whether or not granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of an
Option shall, without the consent of the Optionee, alter or impair his or her rights or obligations under such Option. 
  
 (l) 
Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions
as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 
  
 (m) 
Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously
granted, in either case at such time and based upon such terms and conditions as the Committee shall establish. 
  
 
SECTION 9. PAYMENT FOR SHARES. 
  
 (a) 
General Rule. The entire Exercise Price of Shares issued under the Plan shall be payable in lawful money of the United States of America at the time when such Shares are purchased, except as provided in Sections 9(b)
through 9(g) below. 
  
 (b) 
Surrender of Stock. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by surrendering, or attesting to the ownership of, Shares 
  

 -14- 

 which have already been owned by the Optionee or his representative for more than 12 months. Such Shares shall be valued
at their Fair Market Value on the date when the new Shares are purchased under the Plan. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize
compensation expense (or additional compensation expense) with respect to the Option for financial reporting purposes. 
  
 (c) 
Services Rendered. At the discretion of the Committee, Shares may be awarded under the Plan in consideration of services rendered to the Company or a Subsidiary prior to the award. If Shares are awarded without the
payment of a Purchase Price in cash, the Committee shall make a determination (at the time of the award) of the value of the services rendered by the Offeree and the sufficiency of the consideration to meet the requirements of Section 6(c).

  
 (d) 
Cashless Exercise. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to
sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price. 
  
 (e) 
Exercise/Pledge. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or
lender to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of the aggregate Exercise Price. 
  
 (f) 
Promissory Note. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Company) a full-recourse promissory note. However, the par value of
the Common Shares being purchased under the Plan, if newly issued, shall be paid in cash or cash equivalents. 
  
 (g) 
Other Forms of Payment. To the extent that a Stock Option Agreement so provides, payment may be made in any other form that is consistent with applicable laws, regulations and rules. 
  
 
SECTION 10. STOCK APPRECIATION RIGHTS. 
  
 (a) 
SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other
terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted in consideration of a reduction in the Optionee’s other compensation. 

 
 (b) 
Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 12. SARs granted to any Optionee in a
single calendar year shall in no event pertain to more than One Million (1,000,000) Shares. The limitations set
forth in the preceding sentence shall be subject to adjustment in accordance with Section 12. 
  

 -15- 

 (c) 
Exercise Price. Each SAR Agreement shall specify the Exercise Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. 
  
 (d) 
Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR Agreement shall also specify the term of the SAR. A SAR Agreement may provide
for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s service. SARs may
be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR may be included in an ISO only at the time of grant but may be included in an NSO at the time
of grant or thereafter. A SAR granted under the Plan may provide that it will be exercisable only in the event of a
Change in Control. 
  
 (e) 
Effect of Change in Control. The Committee may determine, at the time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all Common Shares subject to such SAR in the event that a Change
in Control occurs with respect to the Company, subject to the following sentence. If the Company and the other party to the transaction constituting a Change in Control agree that such transaction is to be treated as a “pooling of
interests” for financial reporting purposes, and if such transaction in fact is so treated, then the acceleration of exercisability shall not occur to the extent that the Company’s independent accountants and such other party’s
independent accountants separately determine in good faith that such acceleration would preclude the use of “pooling of interests” accounting. 
  
 (f) 
Exercise of SARs. If, on the date when a SAR expires, the Exercise Price under such SAR is less than the Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR
shall automatically be deemed to be exercised as of such date with respect to such portion. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Shares,
(b) cash or (c) a combination of Shares and cash, as the Committee shall determine. The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market
Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price.  
  
 (g) 
Special Holding Period. To the extent required by Section 16 of the Exchange Act or any rule thereunder, an SAR shall not be exercised for cash unless both it and the related Option have been outstanding for more than
six months. 
  
 (h) 
Special Exercise Window. To the extent required by Section 16 of the Exchange Act or any rule thereunder, an SAR may only be exercised for cash during a period which (a) begins on the third business day following a date
when the Company’s quarterly summary statement of sales and earnings is released to the public and (b) ends on the twelfth business day following such date. This Section 10(h) shall not apply if the exercise occurs automatically on the date
when the related Option expires, and the Committee may determine that it shall not apply to limited SARs that are exercisable only in the event of a Change in Control. 
  
  

 -16- 

 (i) 
Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by the Company or
by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of a SAR shall, without the consent of the Optionee,
may alter or impair his or her rights or obligations under such SAR. 
  
 
SECTION 11. STOCK UNITS. 
  
 (a) 
Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all applicable terms of the Plan
and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction in the
recipient’s other compensation. 
  
 (b) 
Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients. 
  
 (c) 
Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. A Stock
Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that all or part of such Stock
Units shall become vested in the event that a Change in Control occurs with respect to the Company, except as provided in the next following sentence. If the Company and the other party to the transaction constituting a Change in Control agree that
such transaction is to be treated as a “pooling of interests” for financial reporting purposes, and if such transaction in fact is so treated, then the acceleration of vesting shall not occur to the extent that the Company’s
independent accountants and such other party’s independent accountants separately determine in good faith that such acceleration would preclude the use of “pooling of interests” accounting. 
  
 (d) 
Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right
to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of
dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions (including without
limitation, any forfeiture conditions) as the Stock Units to which they attach. 
  
 (e) 
Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock
Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting Stock Units into cash may include (without limitation) a method based on

  
  

 -17- 

 the average Fair Market Value of Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or
in installments. The distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by
an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 12. 
  
 (f) 
Death of Recipient. Any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award under the
Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s
death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s estate. 

 
 (g) 
Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the
terms and conditions of the applicable Stock Unit Agreement. 
  
 
SECTION 12. ADJUSTMENT OF SHARES. 
  
 (a) 
Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material
effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such
adjustments as it, in its sole discretion, deems appropriate in one or more of: 
  
 (i) The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Section 5; 
  
 (ii) The limitations set forth in Sections 4(c), 8(b) and
10(b); 
  
 (iii) The number of NSOs to be granted
to Outside Directors under Section 4(b); 
  
 (iv)
The number of Shares covered by each outstanding Option and SAR; 
  
 (v) The Exercise Price under each outstanding Option and SAR; or 
  
 (vi) The number of Stock Units included in any prior Award which has not yet been settled. 
  
 Except as provided in this Section 12, a Participant shall have no rights by reason of any
issue by the Company of stock of any class or securities convertible into stock of any class, any 
  

 -18- 

 subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class. 
  
 (b)

Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
  
 (c) 
Reorganizations. In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement shall provide for:

  
 (i) The continuation of the outstanding
Awards by the Company, if the Company is a surviving corporation; 
  
 (ii) The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary; 
  
 (iii) The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; 

 
 (iv) Full exercisability or vesting and accelerated
expiration of the outstanding Awards; or 
  
 (v)
Settlement of the full value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards. 
  
 (d) 
Reservation of Rights. Except as provided in this Section 12, an Optionee or Offeree shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or
any other increase or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason
thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
  
 
SECTION 13. DEFERRAL OF AWARDS. 
  
 The Committee (in its sole discretion) may permit or require a Participant to: 
  

	 	a)	 	Have cash that otherwise would be paid to such Participant as a result of the exercise of a SAR or the settlement of Stock Units credited to a deferred compensation account
established for such Participant by the Committee as an entry on the Company’s books; 

  

	 	b)	 	Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of Stock Units; or

  

 -19- 

	 	c)	 	Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR or the settlement of Stock Units converted into amounts credited
to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall be determined by reference to the Fair Market Value of such Shares as of the date when they otherwise
would have been delivered to such Participant. 

  
 A deferred
compensation account established under this Section 13 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of
a general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such Participant and the Company. If the
deferral or conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts
established under this Section 13. 
  
 
SECTION 14. AWARDS UNDER OTHER PLANS. 
  
 The Company may grant awards under other plans or programs. Such awards may be settled in the form of Shares issued under this Plan. Such Shares shall be treated for all purposes under the Plan like Shares issued in settlement of Stock
Units and shall, when issued, reduce the number of Shares available under Section 5. 
  
 
SECTION 15. PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 
  
 (a) 
Effective Date. No provision of this Section 15 shall be effective unless and until the Board has determined to implement such provision. 
  
 (b) 
Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs, Restricted
Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Section 15 shall be filed with the Company on the prescribed form.

  
 (c) 
Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be
paid in cash shall be calculated in a manner determined by the Board. The terms of such NSOs, Restricted Shares or Stock Units shall also be determined by the Board. 
  
 
SECTION 16. LEGAL AND REGULATORY REQUIREMENTS. 
  
 Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act of
1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations and the regulations of any stock exchange on 
  

 -20- 

 which the Company’s securities may then be listed, and the Company has obtained the approval or favorable ruling
from any governmental agency which the Company determines is necessary or advisable. 
  
 
SECTION 17. WITHHOLDING TAXES. 
  
 (a) 
General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax
obligations that arise in connection with the Plan. The Company shall not be required to issue any Shares or make any cash payment under the Plan until such obligations are satisfied. 
  
 (b) 
Share Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise would be
issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no event may a
Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to satisfy the legally required minimum tax withholding. 
  
 
SECTION 18. LIMITATION ON PARACHUTE PAYMENTS. 
  
 (a) 
Scope of Limitation. This Section 18 shall apply to an Award unless the Committee, at the time of making an Award under the Plan or at any time thereafter, specifies in writing that such Award shall not be subject to
this Section 18. If this Section 18 applies to an Award, it shall supersede any contrary provision of the Plan or of any Award granted under the Plan. 
  
 (b) 
Basic Rule. In the event that the independent auditors most recently selected by the Board (the “Auditors”) determine that any payment or transfer by the Company under the Plan to or for the benefit of a
Participant (a “Payment”) would be nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute payments” in Section 280G of the Code, then the aggregate present value of all
Payments shall be reduced (but not below zero) to the Reduced Amount. For purposes of this Section 18, the “Reduced Amount” shall be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments
without causing any Payment to be nondeductible by the Company because of Section 280G of the Code. 
  
 (c) 
Reduction of Payments. If the Auditors determine that any Payment would be nondeductible by the Company because of Section 280G of the Code, then the Company shall promptly give the Participant notice to that effect
and a copy of the detailed calculation thereof and of the Reduced Amount, and the Participant may then elect, in his or her sole discretion, which and how much of the Payments shall be eliminated or reduced (as long as after such election the
aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in writing of his or her election within 10 days of receipt of notice. If no such election is made by the Participant within such 10-day period, then the
Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall 
  

 -21- 

 notify the Participant promptly of such election. For purposes of this Section 18, present value shall be determined in
accordance with Section 280G(d)(4) of the Code. All determinations made by the Auditors under this Section 18 shall be binding upon the Company and the Participant and shall be made within 60 days of the date when a Payment becomes payable or
transferable. As promptly as practicable following such determination and the elections hereunder, the Company shall pay or transfer to or for the benefit of the Participant such amounts as are then due to him or her under the Plan and shall
promptly pay or transfer to or for the benefit of the Participant in the future such amounts as become due to him or her under the Plan. 
  
 (d) 
Overpayments and Underpayments. As a result of uncertainty in the application of Section 280G of the Code at the time of an initial determination by the Auditors hereunder, it is possible that Payments will have been
made by the Company that should not have been made (an “Overpayment”) or that additional Payments that will not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation
of the Reduced Amount hereunder. In the event that the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against the Company or the Participant that the Auditors believe has a high probability of success, determine
that an Overpayment has been made, such Overpayment shall be treated for all purposes as a loan to the Participant which he or she shall repay to the Company, together with interest at the applicable federal rate provided in Section 7872(f)(2) of
the Code; provided, however, that no amount shall be payable by the Participant to the Company if and to the extent that such payment would not reduce the amount subject to taxation under Section 4999 of the Code. In the event that the Auditors
determine that an Underpayment has occurred, such Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the Participant, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the
Code. 
  
 (e) 
Related Corporations. For purposes of this Section 18, the term “Company” shall include affiliated corporations to the extent determined by the Auditors in accordance with Section 280G(d)(5) of the Code.

  
 
SECTION 19. NO EMPLOYMENT RIGHTS. 
  
 No provision of the Plan, nor any right or Option granted under the Plan, shall be construed to give any person any right to become, to be treated as, or to remain an Employee. The Company and its Subsidiaries reserve the right to terminate
any person’s Service at any time and for any reason, with or without notice. 
  
 
SECTION 20. DURATION AND AMENDMENTS. 
  
 (a) 
Term of the Plan. The Plan, as set forth herein, shall terminate automatically on May 4, 2011 and may be terminated on any earlier date pursuant to Subsection (b) below. 
  
 (b) 
Right to Amend or Terminate the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under any Option granted before amendment of the Plan shall not be materially
impaired by such amendment, except with consent of the person to whom the Option was granted. An amendment of the Plan shall be subject to the 
  

 -22- 

 approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules.

  
 (c) 
Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan after the termination thereof, except upon exercise of an Option granted prior to such termination. The termination of the Plan, or
any amendment thereof, shall not affect any Share previously issued or any Option previously granted under the Plan. 
  
 
SECTION 21. EXECUTION. 
  
 To
record the adoption of the Plan by the Board of Directors effective as of May 4, 2001, the Company has caused its authorized officer to execute the same. 
  

	 MAGMA DESIGN AUTOMATION, INC.

		
	 By:
	 	 /s/    RAJEEV
MADHAVAN        

	Title:	 	

  

 -23-Lease for corporate headquarters

 Exhibit 10.2 
  
 OFFICE LEASE 
  
 5460 BAYFRONT PLAZA, 
 SANTA CLARA,
CALIFORNIA 
  
 3COM CORPORATION 
  
 and 
  
 MAGMA DESIGN AUTOMATION, INC. 

		
	 5460 BAYFRONT PLAZA OFFICE LEASE
	 	1
		
	 ARTICLE 1 PREMISES, BUILDING, PROJECT, AND COMMON AREAS
	 	 3

		
	 ARTICLE 2 LEASE TERM
	 	 4

		
	 ARTICLE 3 BASE RENT; ABATED BASE RENT
	 	 5

		
	 ARTICLE 4 ADDITIONAL RENT
	 	 5

		
	 ARTICLE 5 USE OF PREMISES
	 	 9

		
	 ARTICLE 6 SERVICES AND UTILITIES
	 	 10

		
	 ARTICLE 7 REPAIRS
	 	 11

		
	 ARTICLE 8 ADDITIONS AND ALTERATIONS
	 	 11

		
	 ARTICLE 9 COVENANT AGAINST LIENS
	 	 13

		
	 ARTICLE 10 INSURANCE
	 	 13

		
	 ARTICLE 11 DAMAGE AND DESTRUCTION
	 	 16

		
	 ARTICLE 12 NON-WAIVER
	 	 17

		
	 ARTICLE 13 CONDEMNATION
	 	 18

		
	 ARTICLE 14 ASSIGNMENT AND SUBLETTING
	 	 18

		
	 ARTICLE 15 SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL OF TRADE FIXTURES
	 	 21

		
	 ARTICLE 16 HOLDING OVER
	 	 22

		
	 ARTICLE 17 ESTOPPEL CERTIFICATES
	 	 22

		
	 ARTICLE 18 SUBORDINATION
	 	 22

		
	 ARTICLE 19 DEFAULTS: REMEDIES
	 	 23

		
	 ARTICLE 20 COVENANT OF QUIET ENJOYMENT
	 	 25

		
	 ARTICLE 21 SECURITY DEPOSIT
	 	 25

		
	 ARTICLE 22 TELECOMMUNICATIONS EQUIPMENT
	 	 26

		
	 ARTICLE 23 SIGNS
	 	 27

		
	 ARTICLE 24 COMPLIANCE WITH LAW
	 	 28

  

 i 

 INDEX 
 (continued) 
  

	 	 	Page

	 ARTICLE 25 LATE CHARGES
	 	29
		
	 ARTICLE 26 LANDLORD’S RIGHT TO CURE DEFAULT: PAYMENTS BY TENANT
	 	29
		
	 ARTICLE 27 ENTRY BY LANDLORD
	 	30
		
	 ARTICLE 28 TENANT PARKING
	 	30
		
	 ARTICLE 29 RIGHT TO USE PERSONAL PROPERTY
	 	31
		
	 ARTICLE 30 MISCELLANEOUS PROVISIONS
	 	31

  

 ii 

 5460 BAYFRONT PLAZA 
 SANTA CLARA, CALIFORNIA 
  
 OFFICE LEASE 
  
 This Office Lease (the
“Lease”), dated as of the date set forth in Section 1 of the Summary of Basic Lease Information (the “Summary”), below, is made by and between 3Com Corporation, a California corporation
(“Landlord”) and Magma Design Automation, Inc., a Delaware corporation (“Tenant”). 
  
 SUMMARY OF BASIC LEASE INFORMATION 
  

	 TERMS OF LEASE

	  	 DESCRIPTION

		
	 1. Effective Date:
	  	June 19, 2003
		
	 2. Premises
	  	 
		
	     2.1 Building:
	  	That certain four (4)-story building located at 5460 Bayfront Plaza, Santa Clara, California containing approximately one hundred twenty nine thousand seven hundred thirty four
(129,734) square feet of space, and commonly referred to in the Project as “Building 6.”
		
	     2.2 Premises:
	  	The entire Building consisting of approximately 129,734 square feet of space (“the Premises”).
		
	     2.3 Project:
	  	The Building is part of that certain building complex (the “Project”) consisting of six (6) buildings comprising approximately 876,359 square feet of space and other
improvements as set forth in Section 1.2 below.
		
	 3. Lease Term (Article 2):
	  	 
		
	     3.1 Length of Lease Term:
	  	Seven (7) years, subject to extension under Section 2.2 for one (1) Extended Term of five (5) years.
		
	     3.2 Lease Commencement Date:
	  	August 1, 2003
		
	     3.3 Lease Expiration Date:
	  	July 31, 2010, subject to extension under Section 2.2 for one (1) Extended Term of five (5) years.
		
	 4. Base Rent (Article 3):
	  	 

  

	 Months

	  	 Monthly Installment
of Base Rent

	 1 through 8
	  	$           0.00
	 9 through 18
	  	$110,000.00
	 19 through 24
	  	$129,950.00
	 25 through 36
	  	$150,491.44
	 37 through 48
	  	$154,383.46
	 49 through 60
	  	$158,275.48
	 61 through 72
	  	$162,167.50
	 73 through 84
	  	$166,059.52

  

 1 

		
	 5. Tenant’s Share
(Article 4):
	  	14.80%.
		
	 6. Permitted Use
(Article 5):
	  	Tenant shall use the Premises for general office, including research and development, sales, training and electronics labs and any other non-industrial, non-retail uses permitted
under Applicable Laws (as defined in Article 24).
		
	 7. Security Deposit
(Article 21):
	  	Upon the execution hereof, Tenant shall deliver to Landlord a Security Deposit in the amount of One Hundred Fifty Thousand Dollars ($150,000) in the form of a letter of credit, as
more particularly set forth in Section 21.2.
		
	 8. Parking Ratio
(Article 28):
	  	Approximately three and three tenths (3.3) unreserved parking spaces for every 1,000 square feet of the Premises.
		
	 9. Address of Tenant
(Section 30.16):
	  	See Section 30.16 of the Lease.
		
	 10. Address of Landlord
(Section 30.16):
	  	See Section 30.16 of the Lease.
		
	 11. Broker(s)
(Section 30.22):
	  	Landlord – Cushman & Wakefield of California, Inc. Tenant – Insignia/ESG, Inc.
		
	 12. Tenant Improvements
	  	See Tenant Work Letter attached as Exhibit B.

  

 2 

 ARTICLE 1 - PREMISES, BUILDING, PROJECT, AND COMMON AREAS 
  
 1.1 The Premises. Landlord hereby leases to Tenant and
Tenant hereby leases from Landlord the Premises set forth in Section 2.2 of the Summary. The Premises consist of the entire building set forth in Section 2.1 of the Summary (the “Building”), in the location as shown on
Exhibit A, attached hereto. The parties hereto agree that the lease of the Premises is upon and subject to the terms, covenants and conditions (the “TCCs”) herein set forth, and Landlord and Tenant covenant as a material part
of the consideration for this Lease to keep and perform each and all of such terms, covenants and conditions by it to be kept and performed and that this Lease is made upon the condition of such performance. Tenant agrees that Landlord shall not be
obligated to provide or pay for any improvement work or services related to the improvement of the Premises. Landlord shall deliver possession of the Premises to Tenant within three (3) business days after the Effective Date and Tenant shall accept
the Premises in their “AS IS” condition. Notwithstanding the foregoing, Landlord represents and warrants to Tenant that, to the best of its knowledge, the Building’s electrical, plumbing, heating and ventilation systems are in good
working condition and repair as of the Effective Date, and Tenant shall have a period of forty five (45) days after the Effective Date to deliver a “punch list” of any such items which are not in good working order. If Tenant timely
delivers a punch list to Landlord, Landlord shall promptly repair such components of the Premises at its sole expense. Except as expressly set forth in the preceding sentence, Tenant agrees that neither Landlord nor any agent of Landlord has made
any representation or warranty with respect to the Premises or with respect to the present or future suitability of the Premises for the conduct of Tenant’s business or the uses proposed by Tenant. Tenant hereby accepts the Premises and the
Project in their existing condition, subject to all Applicable Laws governing and regulating the use of the Premises, and any covenants or restrictions of record, and accepts this Lease subject to all of the foregoing and to all matters disclosed in
this Lease. 
  
 1.2 The Building and The
Project. The Building is part of a complex of buildings consisting of six (6) buildings and other improvements. The term “Project,” as used in this Lease, shall mean (i) the Building (as defined in Section 1.3
below), (ii) the land (which is improved with landscaping, parking areas and other improvements) upon which the Building and the Common Areas are located as shown on the Project Site Plan, and (iii) all other buildings and improvements located
adjacent to the Building and the land upon which such adjacent buildings are located. 
  
 1.3 Common Areas. Tenant shall have the non-exclusive right to use in common with Landlord and other tenants in the Project, subject to the rules and regulations attached hereto as Exhibit
C attached hereto, those portions of the Project which are provided, from time to time, for use in common by Landlord, Tenant and any other tenants of the Project (such areas, together with such other portions of the Project designated by
Landlord, in its discretion, include without limitation the exterior parking areas, drive lanes, sidewalks and passageways, landscaping, and certain common amenities such as the Fitness Center defined in Section 1.4, which areas are
collectively referred to herein as the “Common Areas”). Landlord reserves the right to close temporarily, make alterations or additions to, or change the location of elements of the Project and the Common Areas, including, without
limitation, the right to (a) make changes in the location, size, shape and number of driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas and walkways; (b) to close
temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available; and (c) to do and perform such other acts and make such other changes in, to or with respect to the Project and Common Areas
as Landlord may deem to be appropriate; provided, however, that Landlord’s exercise of such rights shall not materially, adversely interfere with Tenant’s use and occupancy of the Premises. 
  
  
 1.4 Fitness Center. Tenant’s employees shall be entitled to use the fitness center (“Fitness Center”) located in the Project provided Tenant’s employees must pay all charges customarily charged

  

 3 

 
by Landlord from time to time for the use of the Fitness Center. Landlord shall have the right to require that Tenant’s employees sign customary waivers
of claims and comply with all safety and other procedures applicable to use of the fitness center. In addition, as part of Operating Expenses (as defined in Article 4. below), Tenant shall pay Landlord Additional Rent for the Fitness Center
at the monthly rate of $1.00 per square foot, plus increases of $0.03 per square foot per Lease Year, at all times during the Lease Term (the “Fitness Center Cost”), and all expenses incurred by Landlord in operating the Fitness
Center shall be included in Operating Expenses (as defined in Section 4.2.3. below). The Fitness Center and foyer is approximately twelve thousand five hundred square feet (12,500) and Tenant’s Share for the purposes of determining the
Fitness Center Cost is one thousand eight hundred fifty square feet (1,850). 
  
 1.5 Right of First Offer. Landlord hereby grants to the Tenant named in this Lease (including any “Acquirer”, as that term is defined in Section 14.8 below) a one-time right of first
offer to lease one or more of Buildings 1, 2 and/or 3 of the Project (each building individually or collectively, the “First Offer Space”). The First Offer Space shall mean all (but not less than all) of each of Building 1, Building
2 and Building 3. If at any time during the Lease Term Landlord intends to offer some or all of the First Offer Space for lease to third parties, and provided Tenant is not then in default of any of its obligations under this Lease, Landlord shall
first give written notice to Tenant of the rental rate, term (including any extension options), the identity of which Building(s) is(are) being offered to Tenant, and other material terms upon which Landlord is willing to lease the First Offer Space
to Tenant. Landlord’s notice shall constitute an offer to lease the First Offer Space to Tenant on the terms and conditions contained in said notice. Tenant shall have ten (10) days after receipt of Landlord’s notice in which to accept
such offer by providing written notice to Landlord in which Tenant shall agree to lease such First Offer Space from Landlord at the rental rate and upon the other terms and conditions contained in said notice. If Tenant accepts such offer within the
ten (10) days, Tenant shall, within five (5) days after receipt thereof, execute and return to Landlord a new lease (or, if Landlord deems it appropriate, an amendment to this Lease) prepared by Landlord on the standard form of lease then used by
Landlord, which lease incorporates the material terms and conditions set forth in said notice. Promptly after Tenant executes and delivers the same to Landlord, Landlord shall execute said lease and thereafter the lease shall be deemed effective.
The Right of First Offer is a one-time right, and if Tenant fails to accept Landlord’s offer to lease within the ten (10) days, or thereafter fails to timely execute the Lease, then all of the rights of Tenant to lease the First Offer Space
designated in Landlord’s notice at that time and for all times in the future under this paragraph shall terminate with respect to such First Offer Space (but not with respect to any First Offer Space not previously offered to Tenant pursuant to
this Section 1.5), and Landlord shall have no further obligation under this paragraph to notify Tenant of any other proposed lease of said First Offer Space; provided, however, that if, within ninety (90) days after Landlord’s notice to
Tenant, Landlord offers to lease such First Offer Space to any third party for less than seventy five percent (75%) of the base rent offered to Tenant for such First Offer Space, then Landlord shall submit an additional written offer to Tenant with
respect only to such First Offer Space and Tenant shall be afforded the opportunity to lease such space as provided in this Section 1.5. Once Tenant’s rights under this Section 1.5 have expired with respect to any First Offer Space,
Landlord shall thereafter have the unconditional right to lease such First Offer Space to third parties, or to accept offers from third parties to lease said First Offer Space on any terms and without further obligation to Tenant. Unless expressly
approved in a written consent of Landlord to any assignment of sublease under Article 14, below, the right of first offer under this Section 1.5 is granted for Tenant’s (and any Acquirer’s) personal benefit and may not be
assigned or transferred. 
  
 ARTICLE 2 - LEASE TERM

  
 2.1 Lease Term. The TCCs of this Lease shall
be effective as of the date set forth in Section 1 of the Summary (the “Effective Date”). The term of this Lease (the “Lease Term”) is set forth in Section 3.1 of the Summary and shall commence on the
date set forth in Section 3.2 of the Summary 

  

 4 

 
(the “Lease Commencement Date”), and shall terminate on the date set forth in Section 3.3 of the Summary (the “Lease
Expiration Date”) unless this Lease is sooner terminated as hereinafter provided or unless the Lease Term is extended pursuant to Section 30.33. below (and in the event of any exercise of Tenant’s option thereunder, such
Extended Term shall be deemed included within the “Lease Term”). For purposes of this Lease, the term “Lease Year” shall mean each consecutive twelve (12) month period during the Lease Term occurring after the Lease
Commencement Date; provided, however, that the first Lease Year shall also include any partial month after the Lease Commencement Date. At any time during the Lease Term, Landlord may deliver to Tenant a written notice to confirm such dates, which
Tenant, if accurate, shall execute and return to Landlord within five (5) days of receipt thereof. 
  
 2.2 Option to Extend. Provided Tenant has not been in default under this Lease beyond any applicable notice and cure period at the time it
exercises the option or at commencement of the Extended Term, Tenant shall have the right and option to extend this lease (“Option to Extend”) for one (1) additional option period of five (5) years (the “Extended Term”)
upon the same terms and conditions herein set forth except that the Base Rent shall be adjusted to “Fair Market Value” as defined in and determined in accordance with the terms and conditions of Exhibit E, attached
hereto, as of the commencement of the Extended Term, subject to increases of three percent (3%) for each subsequent Lease Year during the Extended Term. To exercise the Option to Extend, Tenant must give Landlord notice in writing sent so as to be
received at least twelve (12) months but not more than eighteen (18) months prior to the expiration of the initial Lease Term. At Landlord’s election, Tenant’s exercise of its Option to Extend shall be void and of no effect if Tenant is in
default under this Lease beyond any applicable notice and cure period on the date it exercises its Option(s) to Extend or on the expiration of the initial Lease Term. Notwithstanding anything to the contrary, in no event shall Tenant be entitled to
exercise an Option to Extend if Tenant has assigned the Lease to a Transferee other than pursuant to Section 14.8. below, or if at the time of Tenant’s exercise the Premises are subject to subleases totaling more than fifty percent (50%)
of the square feet of the Premises (other than subleases pursuant to Section 14.8. below). 
  
 ARTICLE 3 - BASE RENT; ABATED BASE RENT 
  
 Tenant shall pay, without prior notice or demand, to Landlord or Landlord’s agent at the management office of the Project, or, at Landlord’s
option, at such other place as Landlord may from time to time designate in writing, in currency of the United States of America, base rent (“Base Rent”) in monthly installments as set forth in Section 4 of the Summary, in
advance on or before the first day of each and every calendar month during the Lease Term, without any setoff or deduction whatsoever. The Base Rent for the first full month of the Lease Term which occurs after the expiration of the Free Rent Period
(as defined below) shall be paid at the time of Tenant’s execution of this Lease and credited to such calendar month after the expiration of the Free Rent Period. Base Rent for any partial month shall accrue on a daily basis for the period from
the date such payment is due to the end of such calendar month or to the end of the Lease Term at a rate per day which is equal to 1/365 of the applicable annual Base Rent and all other payments or adjustments required to be made under the TCCs of
this Lease that require proration on a time basis shall be prorated on the same basis. Notwithstanding the foregoing, Tenant shall not be responsible for the payment of Base Rent for months one (1) through eight (8) of the Lease Term (“Free
Rent Period”); provided, however, Tenant shall be responsible for the performance and observance of all other terms and conditions of this Lease during the Free Rent Period, including payment of all Additional Rent as provided in Article
4. 
  
 ARTICLE 4 - ADDITIONAL RENT 
  
 4.1 General Terms. In addition to paying the Base Rent
specified in Article 3 of this Lease, Tenant shall pay “Tenant’s Share” of the annual “Direct Expenses,” as those terms are defined in this 

  

 5 

 
Article 4, together with the Fitness Center Cost. Such payments, together with any and all other amounts payable by Tenant to Landlord pursuant to the
TCCs of this Lease, are hereinafter collectively referred to as “Additional Rent,” and the Base Rent and the Additional Rent are herein collectively referred to as “Rent.” All amounts due under this Article 4
as Additional Rent shall be payable for the same periods and in the same manner as the Base Rent. Without limitation on other obligations of Tenant which survive the expiration of the Lease Term, the obligations of Tenant to pay the Additional Rent
provided for in this Article 4 shall survive the expiration of the Lease Term. 
  
 4.2 Definitions of Key Terms Relating to Additional Rent. As used in this Article 4, the following terms shall have the meanings hereinafter set forth: 
  
 4.2.1 “Direct Expenses” means
“Operating Expenses” and “Tax Expenses”. 
  
 4.2.2 “Expense Year” shall mean each calendar year in which any portion of the Lease Term falls, through and including the calendar year in which the Lease Term expires, provided that Landlord, upon
notice to Tenant, may change the Expense Year from time to time to any other twelve (12) consecutive month period, and, in the event of any such change, Tenant’s Share of Direct Expenses shall be equitably adjusted for any affected Expense
Year. 
  
 4.2.3 “Operating Expenses”
shall mean, except as otherwise provided in this Section 4.2.4 or otherwise in this Lease, all expenses, costs and amounts of every kind and nature which Landlord pays or accrues during any Expense Year because of or in connection with
the ownership, management, maintenance, security, repair, replacement, restoration or operation of the Project, or any portion thereof, subject to the allocation thereof as set forth in Section 4.3, below. Without limiting the generality of
the foregoing, Operating Expenses shall specifically include any and all of the following: (i) the cost of supplying all utilities, the cost of operating, repairing, maintaining, and renovating the utility, telephone, mechanical, sanitary, storm
drainage, and elevator systems, the cost of maintenance and service contracts in connection therewith and payments under any equipment rental agreements; (ii) the cost of all insurance carried by Landlord in connection with the Project; (iii) the
cost of landscaping, relamping, and all supplies, tools, equipment and materials used in the operation, repair and maintenance of the exterior of the Project; (iv) costs incurred in connection with the parking areas servicing the Project; (v) fees
and other costs, including management fees (not to exceed three percent (3%) of gross receipts), consulting fees, legal fees and accounting fees, of all contractors and consultants in connection with the management, operation, maintenance and repair
of the Project; (vi) wages, salaries and other compensation and benefits, including taxes levied thereon, of all persons directly engaged in the operation, maintenance and security of the Project; (vii) excepting the items provided at
Landlord’s sole cost under Section 7.1, any costs incurred by Landlord in the operation, repair, and maintenance of all systems and equipment and components thereof of the Building; (viii) repairs or replacements and other costs incurred
in connection with the Project that are capital in nature under generally accepted accounting principles; provided, however, that any such capital expense shall be amortized over its useful life as reasonably determined by Landlord;
(ix) costs, fees, charges or assessments imposed by, or resulting from any mandate imposed on Landlord by, any federal, state or local government for fire and police protection, trash removal, community services, or other services which do not
constitute “Tax Expenses” as that term is defined in Section 4.2.4, below; and (x) payments under any easement, license, operating agreement, declaration, restrictive covenant, or instrument pertaining to the sharing of costs by the
Project. 
  
 Notwithstanding anything in this Section 4.2.4
to the contrary, for purposes of this Lease, Operating Expenses shall not, however, include the following: (1) marketing costs, costs of leasing commissions, renovations, attorneys’ fees and other costs and expenses incurred in connection with
negotiations or disputes with present or prospective tenants or other occupants of the Project; (2) any 

  

 6 

 
expense resulting from the gross negligence of Landlord, its agents, contractors or employees; (3) interest, principal, points and fees on debts or
amortization on any mortgage or mortgages or any other debt instrument encumbering the Building or the Project; (4) the original costs of constructing the Building and the Project; (5) expenses to the extent Landlord will be reimbursed by another
source (not including Direct Expense reimbursements by tenants), including without limitation replacement of any items covered by warranties; (6) costs incurred to benefit (or resulting from) a specific tenant or items and services selectively
supplied to any tenant other than Tenant (e.g., excess utilities); (7) expenses for the defense of Landlord’s title to the Project; (8) expenses at Landlord’s sole cost under Section 7.1; (9) charitable or political contributions;
(10) expenses incurred to comply with governmental regulations (including without limitation all Environmental Laws (as defined in Section 28.29) and the Americans with Disabilities Act), court order, decree or judgment in effect prior to the
Effective Date, except to the extent any noncompliance results from Tenant’s use and occupancy of the Premises; (11) any expenses incurred in repair, restoration or other work necessitated by fire or other casualty (except to the extent Tenant
is required to pay such expenses as part of Article 11 hereunder; and (12) costs to maintain Landlord’s existence as a corporation or other legal entity. 
  

4.2.4 “Tax Expenses” means all real property taxes and general, special and district assessments and other
governmental impositions, fees, levies and charges of whatever kind, nature or origin, imposed on, or by reason of the ownership or use of, the Project, including: governmental charges, fees or assessments for transit or traffic mitigation
(including area-wide traffic improvement assessments and transportation system management fees), housing, police, fire or other governmental service or purported benefits to the Project, including assessments, taxes, fees, levies and charges imposed
by governmental agencies for such purposes as street, sidewalk, road, utility construction and maintenance, refuse removal and for other governmental services; personal property taxes assessed on the personal property of Landlord used in the
operation of the Project; service payments in lieu of taxes; any tax, fee or excise on the use or occupancy of any part of the Project, or on rent for the Project or for space in the Project; and any other fees, taxes or assessments of any kind or
nature whatsoever levied or assessed in addition to, in lieu of or in substitution for existing or additional real or personal property taxes on the Project or the personal property described above; any increases in the foregoing caused by changes
in assessed valuation, tax rate or other factors or circumstances; and the reasonable cost of contesting by appropriate proceedings the amount or validity of any taxes, assessments or charges described above, provided that such costs shall be
allocated to operating costs for the Project during the year so contested; but excluding income taxes measured by the net income of Landlord or the owner of any interest in the Building or the Project, franchise, capital stock, gift, estate or
inheritance taxes or any federal, state or local documentary transfer taxes imposed in connection with recording a deed transferring an interest in the Project or any portion thereof or interest therein. Notwithstanding the foregoing, to the extent
any increase in Tax Expenses results from a reassessment arising from the Landlord’s first sale of all or any portion of the Project, such increase shall be limited to cumulative annual increases of twenty-five percent (25%) over the tax rates
applicable to the Project for the tax year commencing July 1, 2003 and ending June 30, 2004 (as increased during the Lease Term to the extent permitted under California law absent any change in ownership). For example, if (i) the Tenant’s Share
of Tax Expenses is $100 based on the 2003-2004 tax rates, (ii) such Tax Expense has been increased by the maximum 2% after June 30, 2004, and (iii) the first sale of all or a portion of the Project in late 2004 results in an increase of
Tenant’s Share of Tax Expenses to $200, then the increase in Tenant’s Share of Tax Expenses for such Expense Year shall be limited to $102 x 125%, or $127.50, then subsequently increased by 25% for the next Expense Year to $159.38, and so
on until Tenant’s Tax Expense increase equals Tenant’s Share of Tax Expenses otherwise payable hereunder. Taxes paid directly by Tenant under Section 4.5, below, shall be excluded from Tax Expenses. 
  
 4.2.5 “Tenant’s Share” for the
Premises shall mean the percentage set forth in Section 6 of the Summary. 
  

 7 

 4.3 Allocation of Direct Expenses. The parties acknowledge that the Building is a
part of a multi-building project and that the costs and expenses incurred in connection with the Project (i.e. the Direct Expenses) will be shared between the tenants and occupants of the Building and the tenants and occupants of the other buildings
in the Project. Accordingly, as set forth in Section 4.2 above, Direct Expenses shall be determined for the Project as a whole, and Tenant shall be responsible for paying Tenant’s Share of the Direct Expenses. 
  
 4.4 Calculation and Payment of Additional Rent.

  
 4.4.1 Statement of Estimated Direct
Expenses. Within 120 days after the beginning of each Expense Year, Landlord will provide Tenant with a written expense estimate statement (the “Estimate Statement”) which shall set forth Landlord’s reasonable
estimate of the total amount of Direct Expenses for the then-current Expense Year and the estimated monthly amount of Tenant’s Share of Direct Expenses for such Expense Year. Tenant shall pay the monthly amount stated in the Estimate Statement
as Additional Rent at the same times and in the same manner as Base Rent is payable under Article 3. Landlord will use commercially reasonable efforts to provide a revised Estimate Statement after each Expense Year, to be delivered with the
Statement provided in Section 4.4.2, below. The failure of Landlord to furnish an Estimate Statement for any Expense Year shall not preclude Landlord from enforcing its rights to collect any Direct Expenses under this Article 4,
nor shall Landlord be prohibited from revising any Estimate Statement theretofore delivered to the extent necessary. Until a new Estimate Statement is furnished (which Landlord shall have the right to deliver to Tenant at any time), Tenant shall
continue to pay monthly, with the monthly Base Rent installments, the monthly amount of the Estimated Direct Expenses in Landlord’s most recent Estimate Statement. 
  
 4.4.2 Statement of Actual Direct Expenses and Payment by Tenant. Landlord shall use
reasonable efforts to provide Tenant, within 120 days following the end of each Expense Year, with a statement (the “Statement”) showing the actual Direct Expenses for such Expense Year and comparing the actual Tenant’s Share
of Direct Expenses incurred or accrued for such preceding Expense Year to Tenant’s estimated payments made pursuant to Section 4.4.1. If there has been any underpayment by Tenant, Tenant shall pay such underpayment within fifteen (15)
days after receipt of the Statement, and if there has been any overpayment by Tenant, Landlord shall pay such overpaid amount to Tenant at the time the Statement is delivered or provide an appropriate credit against future Direct Expenses (but only
if Landlord requests such credit in writing). Tenant shall also be responsible for Tenant’s Share of Direct Expenses levied by any governmental authority or by any public utility companies at any time following the Lease Expiration Date which
are attributable to any Expense Year (provided that Landlord delivers Tenant a bill (a “Supplemental Statement”) for such amounts within one (1) year following Landlord’s receipt of the bill therefor). The failure of Landlord
to timely furnish the Statement for any Expense Year shall not prejudice Landlord or Tenant from enforcing its rights under this Article 4. If Tenant provides a written request to Landlord within thirty (30) days after receipt of the
Statement, Tenant may, at its expense during business hours, review Landlord’s books and records concerning Direct Expenses and shall promptly thereafter provide its written analysis of Direct Expenses to Landlord. Tenant may engage a certified
public accountant to audit Landlord’s records, but shall not engage any auditor whose compensation is based on the scope or value of any discrepancies claimed by the auditor. If Tenant’s review discloses any overpayment by Tenant, Landlord
shall refund such amounts within fifteen (15) days after receipt of Tenant’s calculations, absent a bona fide dispute by Landlord; if Tenant’s review discloses any underpayment by Tenant, Tenant shall pay such amounts at the time it
provides its calculations to Landlord. Any dispute between Landlord and Tenant concerning any item of Direct Expenses shall not relieve Tenant of liability for or delay payment of all other Direct Expenses. The provisions of this Section
4.4.1 shall survive the expiration or earlier termination of the Lease Term. 
  

 8 

 4.5 Taxes and Other Charges for Which Tenant Is Directly Responsible. 
  
 4.5.1 Tenant shall be liable for and shall pay before
delinquency taxes levied against Tenant’s equipment, furniture, fixtures and any other personal property of any sublessee, assignee or invitee located in or about the Premises. If any such taxes on Tenant’s equipment, furniture, fixtures
and any other personal property are levied against Landlord or Landlord’s property or if the assessed value of Landlord’s property is increased by the inclusion therein of a value placed upon such equipment, furniture, fixtures or any
other personal property and if Landlord pays any properly assessed taxes based upon such increased assessment, which Landlord shall have the right to do upon fifteen (15) days prior written notice to Tenant, including reasonably satisfactory backup
documentation evidencing such expenses, Tenant shall repay to Landlord the taxes so levied against Landlord or the proportion of such taxes resulting from such increase in the assessment, as the case may be, within fifteen (15) days after
Landlord’s written notice of such taxes. 
  
 4.5.2 If any Alterations in the Premises, whether installed and/or paid for by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, are assessed for real property tax purposes at a valuation
higher than the valuation at which tenant improvements conforming to Landlord’s standard tenant improvements in other space in the Building leased to or offered to lease to other tenants, which improvements are substantially similar to those in
the Premises as of the Lease Commencement Date (the “Building Standard”), are assessed, then the Tax Expenses levied against Landlord or the property by reason of such excess assessed valuation shall be deemed to be taxes levied
against personal property of Tenant and shall be governed by the provisions of Section 4.5.1, above. 
  
 ARTICLE 5 
  
 USE OF PREMISES 
  
 5.1 Permitted Use. Tenant shall use the Premises solely for the Permitted Use set forth in Section 7 of the Summary and Tenant shall not use or permit the Premises or the Project to be used for any other purpose or
purposes whatsoever without the prior written consent of Landlord, which may be withheld in Landlord’s sole discretion. 
  
 5.2 Prohibited Uses. The uses prohibited under this Lease shall include, without limitation, use of the Premises or a portion thereof for
(i) offices of any agency or bureau of the United States or any state or political subdivision thereof; (ii) offices or agencies of any foreign governmental or political subdivision thereof; (iii) offices of any health care professionals or service
organization; (iv) schools or other training facilities which are not ancillary to corporate, executive or professional office use; (v) retail uses; or (vi) commercial broadcast radio or television stations. Tenant shall not allow occupancy density
of use of the Premises which is greater than the density permitted under Applicable Laws (as defined in Article 24 below). Tenant further covenants and agrees that Tenant shall not use, or suffer or permit any person or persons to use, the Premises
or any part thereof for any use or purpose contrary to the provisions of the Rules and Regulations set forth in Exhibit C, attached hereto, and any reasonable modifications thereto provided to Tenant in writing by Landlord, or in
violation of the laws of the United States of America, the State of California, or the ordinances, regulations or requirements of the local municipal or county governing body or other lawful authorities having jurisdiction over the Project)
including, without limitation, any such laws, ordinances, regulations or requirements relating to hazardous materials or substances, as those terms are defined by Applicable Laws now or hereafter in effect. Tenant shall not do or permit anything to
be done in or about the Premises which will in any material way interfere with the rights of other tenants or occupants of the Building, or use or allow the Premises to be used for any unlawful purpose, nor shall Tenant cause, maintain or permit any
nuisance in, on or about the Premises. Tenant shall comply with all recorded covenants, conditions, and restrictions now or hereafter affecting the Project. 
  

 9 

 5.3 CC&Rs. Tenant shall comply with all recorded covenants, conditions, and
restrictions ( “CC&Rs”) currently affecting the Project. Additionally, Tenant acknowledges that the Project may be subject to future CC&Rs which Landlord, in Landlord’s reasonable discretion, deems reasonably necessary,
and Tenant agrees that this Lease shall be subject and subordinate to such CC&Rs. Landlord shall have the right to require Tenant to execute and acknowledge, within fifteen (15) business days of a request by Landlord, a “Recognition of
Covenants, Conditions, and Restriction,” agreeing to and acknowledging the CC&Rs, provided such CC&Rs do not materially adversely affect Tenant’s use or occupancy of the Premises. 
  
 ARTICLE 6 - SERVICES AND UTILITIES 
  
 6.1 Services Provided By Landlord. Landlord shall
maintain the Building Structure, the Common Areas and the Project, provide ingress and egress to the Building, and shall maintain the Building Structure in a condition and repair consistent with that of Comparable Buildings (as defined below). As
used in this Lease, the term “Comparable Buildings” means buildings which are comparable to the Building in terms of age, quality of construction, level of service and amenities, size and appearance and located in a comparable
geographical area, as reasonably determined by Landlord. 
  
 6.2 Services Provided by Tenant. At all times during the Lease Term, Tenant shall contract directly with utility providers, at its sole expense, for all utilities (including without limitation, electricity, gas and
water) attributable to its use of the entire Building. Such utility use shall include, without limitation, electricity and gas use for lighting, incidental use and “HVAC,” as that term is defined below. All such utility payments shall be
paid directly by Tenant prior to the date on which the same are due to the utility provider. Tenant shall also provide at its expense any and all trash removal, janitorial, security and regular roof and HVAC inspection and maintenance services to
the extent necessary to maintain the Building in a manner consistent with Comparable Buildings. Tenant agrees and acknowledges that the utility costs to be paid directly by Tenant which are attributable to the Building may also include certain
utility costs such as electricity and water associated with certain elements of the Common Areas located immediately adjacent to the Building. Tenant shall cooperate fully with Landlord at all times and abide by all regulations and requirements that
Landlord may reasonably prescribe for the proper functioning and protection of the HVAC, electrical, mechanical and plumbing systems and maintenance and inspection of the roof covering for the Building. If Landlord reasonably determines that Tenant
has not fulfilled its obligations under this Section 6.2, upon fifteen (15) days prior written notice to Tenant, Landlord may, but need not, provide such services, and Tenant shall pay Landlord the cost thereof within fifteen (15) days after
Landlord’s written demand. 
  
 6.3 Interruption of
Use. Tenant agrees that Landlord shall not be liable for damages, by abatement of Rent or otherwise, for failure to furnish or delay in furnishing any service (including telephone and telecommunication services), or for any diminution in the
quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by breakage, repairs, replacements, or improvements, by any strike, lockout or other labor trouble, by inability to secure electricity, gas,
water, or other fuel at the Building or Project after reasonable effort to do so, by any riot or other dangerous condition, emergency, accident or casualty whatsoever, by act or default of Tenant or other parties, or by any other cause; and such
failures or delays or diminution shall never be deemed to constitute an eviction or disturbance of Tenant’s use and possession of the Premises or relieve Tenant from paying Rent or performing any of its obligations under this Lease.
Furthermore, Landlord shall not be liable under any circumstances for a loss of, or injury to, property or for injury to, or consequential damages to Tenant’s business, through or in connection with or incidental to a failure to furnish any of
the services or utilities as set forth in this Article 6. Tenant hereby waives any benefits of any applicable existing or future Applicable Laws, including the provisions of California Civil Code Section 1932(1), permitting the termination of
this Lease due to such interruption, failure or inability to provide services 

  

 10 

 
for any limited duration. Landlord may comply with voluntary controls or guidelines promulgated by any governmental entity relating to the use or
conservation of energy, water, gas, light or electricity or the reduction of automobile or other emissions without creating any liability of Landlord to Tenant under this Lease, provided that (i) the Premises are not thereby rendered untenantable,
and (ii) the same does not materially adversely interfere with Tenant’s Permitted Use of the Premises. 
  
 ARTICLE 7 - REPAIRS 
  
 7.1 Landlord’s Obligations. Landlord shall maintain in operating order and keep in good repair and condition the structural portions of the Building, consisting of the foundation,
floor/ceiling slabs, roof structure, columns, beams and load bearing walls (collectively, “Building Structure”) at Landlord’s sole cost and expense, consistent with Comparable Buildings; provided, however, that Tenant shall be
required to reimburse Landlord for such costs to the extent any repairs to the Building Structure are required due to Tenant’s breach of this lease or the negligent act or omission of Tenant, its agents, employees and contractors (collectively
the “Tenant Parties”). Landlord shall also maintain and repair all Common Areas on the Project and include the cost thereof in Operating Expenses. Landlord shall undertake reasonable efforts to perform all maintenance, repairs and
replacements pursuant to this Section 7.1 promptly after Landlord learns of the need for such maintenance, repairs and replacements, but in any event within thirty (30) days after Tenant provides written notice to Landlord of the need for
such maintenance, repairs and replacements; provided, however, that in cases of emergency (i.e., circumstances which, if not addressed promptly, could result in material damage to persons and property), Landlord shall perform any maintenance,
repairs and replacements as soon as reasonably practicable after it learns of the need for such maintenance, repairs and replacements. Tenant hereby waives any and all rights under and benefits of subsection 1 of Section 1932 and Sections 1941 and
1942 of the California Civil Code or under any similar law, statute, or ordinance now or hereafter in effect. 
  
 7.2 Tenant’s Obligations. Tenant, at its sole cost and expense, shall maintain in operating order and keep in good repair and
condition, consistent with Comparable Buildings, all other components of the Building which are not Landlord’s responsibility under Section 7.1, including without limitation the elevator cabs and equipment (including elevator shafts),
the Base Building (as defined in Article 8, below) mechanical, electrical, life safety, plumbing, sprinkler systems and HVAC systems which were not constructed by Tenant Parties (collectively, the “Building Systems”), all Tenant
Improvements and Alterations installed in the Premises, and all of Tenant’s and Landlord’s personal property in the Premises. In addition, except as provided in Section 7.1, Tenant shall, at its expense and pursuant to the TCCs of
this Lease, promptly and adequately repair all damage to the Premises and replace or repair all damaged, broken, or worn fixtures and appurtenances (but such obligation shall not extend to the Building Structure), excepting ordinary wear and tear;
provided however, that at Landlord’s option, if Tenant fails to make such repairs and replacements, and upon fifteen (15) days prior written notice to Tenant, Landlord may, but need not, make such repairs and replacements, and Tenant shall pay
Landlord the cost to make such repairs, alterations, improvements or additions to the Premises’ or to the Project or to any equipment located in the Premises, as Landlord shall reasonably deem necessary, within fifteen (15) days after
Landlord’s written demand. 
  
 ARTICLE 8 - ADDITIONS AND
ALTERATIONS 
  
 8.1 Landlord’s Consent to
Alterations. Tenant may not make any improvements, alterations, additions or changes to the Building Systems, the Building Structure or any mechanical, plumbing or HVAC facilities or systems which affect the Building Structure, Building
Systems or exterior appearance of the Building (collectively, the “Alterations”) without first procuring the prior written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less than ten (10)
days prior to the commencement thereof, and which consent shall not be unreasonably withheld 

  

 11 

 
by Landlord; provided, however, that it shall be deemed reasonable for Landlord to withhold its consent to any Alteration which materially or adversely
affects the Building Structure, Building Systems or exterior appearance of the Building, and Landlord may condition its approval by requiring specific contractors and/or engineers to perform work on portions of the Building Systems or Building
Structure. The construction of any and all Alterations, including the initial improvements to the Premises shall be governed by the TCCs of the Tenant Work Letter attached hereto as Exhibit B in addition to the TCCs of this Article
8. 
  
 8.2 Manner of Construction. Tenant
shall utilize only competent contractors, subcontractors, materials, mechanics and materialmen reasonably approved by Landlord for the construction of any Alterations. Upon Landlord’s request (unless Landlord waived, at the time of
Landlord’s approval of any Alterations pursuant to the provisions of Section 8.5, below, its right to make such request), Tenant shall, at Tenant’s expense, remove such Alterations upon the expiration or any early termination of the
Lease Term. If such Alterations will involve the use of or disturb hazardous materials or substances existing in the Premises, Tenant shall comply with Landlord’s rules and regulations concerning, and all Applicable Laws pertaining to Hazardous
Materials (as defined in Section 30.30). Tenant shall construct such Alterations and perform such repairs in a good and workmanlike manner, in conformance with any and all applicable federal, state, county or municipal laws, rules and regulations
and pursuant to a valid building permit, issued by the City of Santa Clara, all in conformance with Landlord’s construction rules and regulations. In the event Tenant performs any Alterations in the Premises which require or give rise to
governmentally required changes to the “Base Building,” as that term is defined below, then Tenant shall, at its expense, make such changes to the Base Building. The “Base Building” shall include the structural portions of
the Building, and the public restrooms and the systems and equipment located in the internal core of the Building. In performing the work of any such Alterations, Tenant shall have the work performed in such manner so as not to obstruct access to
the Project or any portion thereof, by any other tenant of the Project, and so as not to obstruct the business of Landlord or other tenants in the Project. Tenant shall not use (and upon notice from Landlord shall cease using) contractors, services,
workmen, labor, materials or equipment that, in Landlord’s reasonable judgment, would disturb labor harmony with the workforce or trades engaged in performing other work, labor or services in or about the Building or the Common Areas. In
addition to Tenant’s obligations under Article 9 of this Lease, upon completion of any Alterations which affect the Building Systems and Building Structures, Tenant agrees to cause a notice of completion to be recorded in the office of
the Recorder of the County of Santa Clara in accordance with Section 3093 of the Civil Code of the State of California or any successor statute, and Tenant shall deliver to Landlord a reproducible copy of the “as built” drawings of all
Alterations as well as all permits, approvals and other documents issued by any governmental agency in connection with the Alterations. 
  
 8.3 Payment for Improvements. Tenant shall comply with all Applicable Laws relating to final lien releases and waivers in connection
with Tenant’s payment to contractors for any Alterations. Tenant shall reimburse Landlord for Landlord’s reasonable out-of-pocket costs and expenses reasonably incurred in connection with Landlord’s review of any Alterations.

  
 8.4 Construction Insurance. In addition
to the requirements of Article 10 of this Lease, in the event that Tenant makes any Alterations, prior to the commencement of such Alterations, Tenant shall provide Landlord with evidence that Tenant carries “Builder’s All
Risk” insurance in an amount reasonably related to the value of such Alterations, it being understood and agreed that all of such Alterations shall be insured by Tenant pursuant to Article 10 of this Lease immediately upon completion
thereof. In addition, Landlord may, to the extent the same is reasonable given Tenant’s net worth and the magnitude of the Alterations, require Tenant to obtain a lien and completion bond or some alternate form of security satisfactory to
Landlord in an amount sufficient to ensure the lien-free completion of such Alterations and naming Landlord as a co-obligee. 
  

 12 

 8.5 Landlord’s Property. On or before the expiration or earlier termination of this
Lease, Tenant shall remove all fixtures and/or equipment installed by Tenant and repair any damage to the Premises and Building caused by such removal and returns the affected portion of the Premises to a building standard tenant improved condition
as determined by Landlord. Furthermore, Landlord may, by written notice to Tenant prior to the end of the Lease Term, or given following any earlier termination of this Lease, require Tenant, at Tenant’s expense, to remove any Alterations or
improvements in the Premises and to repair any damage to the Premises and Building caused by such removal (reasonable wear and tear excepted) and return the affected portion of the Premises to a building standard tenant improved condition as
determined by Landlord; provided, however, if, in connection with any request for Landlord’s approval for particular Alterations, (1) Tenant requests Landlord’s decision with regard to the removal of such Alterations, and (2) Landlord
agrees in writing to waive the removal requirement at the time it approves such Alterations, then Tenant shall not be required to so remove such Alterations, in which case all such Alterations (together with any fixtures and equipment Landlord does
not require Tenant to remove) shall become Landlord’s property; and provided further, that Tenant shall not be required to remove any Alterations installed by Tenant as part of its initial tenant improvements in and to the Premises installed
during calendar year 2003. If Tenant fails to complete such removal and/or to repair any damage caused by the removal of any Alterations or improvements in the Premises, then at Landlord’s option, either (A) Tenant shall be deemed to be holding
over in the Premises and Rent shall continue to accrue in accordance with the TCCs of Article 16, below, until such work shall be completed, or (B) Landlord may perform such removal and repair work and charge the cost thereof to Tenant.
Tenant hereby protects, defends, indemnifies and holds Landlord harmless from any liability, cost, obligation, expense or claim of lien in any manner relating to the installation, placement, removal or financing of any such Alterations,
improvements, fixtures and/or equipment in, on or about the Premises, which obligations of Tenant shall survive the expiration or earlier termination of this Lease for one (1) year following such expiration or earlier termination. At all times
during the Term of this Lease, Tenant shall be entitled to remove, and Landlord shall have no interest in, Tenant’s trade fixtures and equipment. 
  
 ARTICLE 9 - COVENANT AGAINST LIENS 
  
 Tenant shall keep the Project and Premises free from any liens or encumbrances arising out of the work performed, materials furnished or obligations
incurred by or on behalf of Tenant, and shall protect, defend, indemnify and hold Landlord harmless from and against any claims, liabilities, judgments or costs (including, without limitation, reasonable attorneys’ fees and costs) arising out
of same or in connection therewith. Tenant shall give Landlord notice at least ten (10) business days prior to the commencement of any such work on the Premises (or such additional time as may be necessary under Applicable Laws or as required by
another provision in this Lease) to afford Landlord the opportunity of posting and recording appropriate notices of non-responsibility. Tenant shall remove any such lien or encumbrance by bond or otherwise within fifteen (15) days after notice by
Landlord, and if Tenant shall fail to do so, Landlord may pay the amount necessary to remove such lien or encumbrance, without being responsible for investigating the validity thereof, and Tenant shall repay such amounts as Additional Rent within
fifteen (15) days after Landlord’s written demand, without limitation as to other remedies available to Landlord under this Lease. Nothing contained in this Lease shall authorize Tenant to do any act which shall subject Landlord’s title to
the Building or Premises to any liens or encumbrances whether claimed by operation of law or express or implied contract. 
  
 ARTICLE 10 - INSURANCE 
  
 10.1 Indemnification and Waiver. 
  
 10.1.1 Except to the extent caused by the negligence or willful misconduct of Landlord or any Landlord Related Parties (defined below),
Tenant and its successors shall indemnify, defend and 

  

 13 

 
hold Landlord, its trustees, members, principals, beneficiaries, partners, officers, directors, employees, lender(s) and agents (“Landlord Related
Parties”) harmless from and against all liabilities, obligations, damages, penalties, claims, actions, costs, charges and expenses, including, without limitation, reasonable attorneys’ fees and other professional fees (if and to the
extent permitted by Applicable Law), which may be imposed upon, incurred by or asserted against Landlord or any of the Landlord Related Parties and arising out of or in connection with any damage or injury occurring in the Premises, a breach of this
Lease by the Tenant or its successors, or any negligent acts or omissions (including violations of Applicable Laws) of Tenant, the Tenant Related Parties (defined below) or any of Tenant’s transferees, successors, contractors or licensees.

  
 10.1.2 Except to the extent caused by the
negligence or willful misconduct of Tenant or any Tenant Related Parties (defined below), Landlord and its successors shall indemnify, defend and hold Tenant and its officers and directors (“Tenant Related Parties”) harmless from
and against all liabilities, obligations, damages, penalties, claims, actions, costs, charges and expenses, including, without limitation, reasonable attorneys’ fees and other professional fees (if and to the extent permitted by Applicable
Law), which may be imposed upon, incurred by or asserted against Tenant or any of the Tenant Related Parties and arising out of or in connection with a breach of this Lease by Landlord or its successors, the negligent acts or omissions (including
violations of Applicable Law) of Landlord, the Landlord Related Parties, any of Landlord’s contractors or the Landlord’s successors. 
  
 10.1.3 Except to the extent covered by Landlord’s insurance carried hereunder (or to the extent any loss would have been covered had
the insurance required by this Lease been carried) and except to the extent of any gross negligence or willful misconduct of Landlord or any Landlord Related Parties, Landlord and the Landlord Related Parties shall not be liable for, and Tenant
waives, all claims for loss or damage to Tenant’s business or loss, theft or damage to Tenant’s property or the property of any person claiming by, through or under Tenant resulting from: (1) wind or weather; (2) the failure of any
sprinkler, heating or air-conditioning equipment, any electric wiring or any gas, water or steam pipes; (3) the backing up of any sewer pipe or downspout; (4) the bursting, leaking or running of any tank, water closet, drain or other pipe; (5)
water, snow or ice upon or coming through the roof, skylight, stairs, doorways, windows, walks or any other place upon or near the Building; (6) any act or omission of any party other than Landlord or Landlord Related Parties; and (7) any causes not
reasonably within the control of Landlord. Tenant shall insure itself against such losses under Section 10.3.2 below. 
  
 The provisions of this Section 10.1 shall survive the expiration or sooner termination of this Lease with respect to any claims or liability
arising in connection with any event occurring prior to such expiration or termination. 
  
 10.2 Tenant’s Compliance With Landlord’s Fire and Casualty Insurance. Tenant shall, at Tenant’s expense, comply with all insurance company requirements pertaining to the use of the
Premises which is not a general office use. If Tenant’s conduct or use of the Premises causes any increase in the premium for such insurance policies then Tenant shall reimburse Landlord for any such increase to the extent caused by
Tenant’s use of the Premises which is not a general office use. Tenant, at Tenant’s expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National Board of Fire
Underwriters) and with any similar body. 
  
 10.3
Tenant’s Insurance. Tenant shall maintain the following coverages in the following amounts. 
  
 10.3.1 Commercial General Liability Insurance covering the insured against claims of bodily injury, personal injury and property damage
(including loss of use thereof) arising out of Tenant’s operations, and contractual liabilities (covering the performance by Tenant of its indemnity agreements) 

  

 14 

 
including a Broad Form endorsement covering the insuring provisions of this Lease and the performance by Tenant of the indemnity agreements set forth in
Section 10.1 of this Lease, for limits of liability not less than: 
  

	Bodily Injury and Property Damage	  	$5,000,000 each occurrence
	Liability	  	$5,000,000 annual aggregate
		
	 Personal Injury Liability
	  	$5,000,000 each occurrence
	 	  	$5,000,000 annual aggregate
	 	  	0% Insured’s participation

  
 10.3.2
Physical Damage Insurance covering the “Tenant Improvements,” as that term is defined in Section 2.1 of the Tenant Work Letter (excluding the Base Building) (the “Original Improvements”), and (ii) all other
Alterations to the Premises. Such insurance shall be written on an “all risks” of physical loss or damage basis, for the full replacement cost value (subject to reasonable deductible amounts) new without deduction for depreciation of the
covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include coverage for damage or other loss caused by fire or other peril including, but not limited to, vandalism and malicious mischief, theft,
water damage of any type, including sprinkler leakage, bursting or stoppage of pipes, and explosion, and providing business interruption coverage for a period of one year. 
  
 10.3.3 Worker’s Compensation and Employer’s Liability or other similar insurance pursuant to all
applicable state and local statutes and regulations. 
  
 10.4
Form of Policies. The minimum limits of policies of insurance required of Tenant under this Lease shall in no event limit the liability of Tenant under this Lease. Such insurance shall (i) name Landlord, Landlord’s lender
and Landlord’s managing agent, if any, as an additional insured; (ii) specifically cover the liability assumed by Tenant under this Lease, including, but not limited to, Tenant’s obligations under Section 10.1 of this Lease; (iii)
be issued by an insurance company having a rating of not less than A-, VII in Best’s Insurance Guide and licensed to do business in the State of California; (iv) be primary insurance as to all claims thereunder and provide that any insurance
carried by Landlord is excess and is non-contributing with any insurance requirement of Tenant; and (v) provide that said insurance shall not be canceled or coverage changed unless ten (10) days’ prior written notice shall have been given to
Landlord. Tenant shall deliver said policy or policies or certificates thereof to Landlord on or before the Lease Commencement Date and at least thirty (30) days before the expiration dates thereof. In the event Tenant shall fail to procure such
insurance, or to deliver such policies or certificate, Landlord may, at its option, procure such policies for the account of Tenant, and the cost thereof shall be paid to Landlord within five (5) business days after delivery to Tenant of bills
therefor. 
  
 10.5 Subrogation. Landlord and
Tenant intend that their respective property loss risks shall be borne by reasonable insurance carriers to the extent above provided, and Landlord and Tenant hereby agree to look solely to, and seek recovery only from, their respective insurance
carriers in the event of a property loss to the extent that such coverage is agreed to be provided hereunder. The parties each hereby waive all rights and claims against each other for such losses, and waive all rights of subrogation of their
respective insurers. The parties agree that their respective insurance policies are now, or shall be, endorsed such that the waiver of subrogation shall not affect the right of the insured to recover thereunder, so long as no material additional
premium is charged therefor. 
  
 10.6 Landlord’s
Insurance. Landlord shall insure the Building (including the Building Structure and Building Systems) and the Project during the Lease Term against loss or damage due to fire and other casualties covered within the classification of
fire and extended coverage, vandalism coverage 

  

 15 

 
and malicious mischief, sprinkler leakage, water damage and special extended coverage. Such coverage shall be in such amounts, from such companies, and on
such other TCCs, as Landlord may from time to time reasonably determine, provided that such coverage (i) shall be for full replacement of the Building and the Project in compliance with all then existing Applicable Laws; (ii) at Landlord’s
option may provide for rent continuation insurance of up to twelve (12) months rent; and (iii) be with companies and have policies meeting the criteria set forth in Section 10.4(iii) in this Lease. Additionally, at the sole option of
Landlord, such insurance coverage may include the risks of earthquakes and/or flood damage and additional hazards, a rental loss endorsement and one or more loss payee endorsements in favor of the holders of any mortgages or deeds of trust
encumbering the interest of Landlord in the Building or the ground or underlying lessors of the Building, or any portion thereof. In addition, Landlord shall maintain a Commercial General Liability Insurance policy covering the insured against
claims of bodily injury and personal injury, for limits of liability not initially less man $5,000,000 each occurrence and $5,000,000 annual aggregate for each of bodily injury and personal injury. Notwithstanding the foregoing TCCs of this
Section 10.6, the coverage and amounts of insurance carried by Landlord in connection with the Building shall at a minimum be comparable to the coverage and amounts of insurance which are carried by reasonably prudent landlords of Comparable
Buildings, and Worker’s Compensation and Employee’s Liability coverage as required by Applicable Laws. Upon inquiry by Tenant, from time to time, Landlord shall inform Tenant of all such insurance carried by Landlord. 
  
 ARTICLE 11 - DAMAGE AND DESTRUCTION 
  
 11.1 Repair of Damage by Landlord. Tenant shall promptly
notify Landlord of any damage to, or affecting, the Premises resulting from fire or any other casualty. If the Premises, the Project or any Common Areas serving or providing access to the Premises shall be damaged by fire or other casualty, Landlord
shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters beyond Landlord’s reasonable control, and subject to all other TCCs of this Article 11, restore the Base Building and such Common
Areas. Such restoration shall be to substantially the same condition of the Base Building and the Common Areas prior to the casualty, except for modifications required by zoning and building codes and other laws; provided, however, that
Landlord’s restoration obligation shall be limited to the actual amount of insurance proceeds obtained by Landlord for such casualty. Upon the occurrence of any damage to the Premises, upon notice (the “Landlord Repair Notice”)
to Tenant from Landlord, Tenant shall return the Premises to their original condition prior to such casualty at Tenant’s sole cost and expense. Following delivery of a Landlord Repair Notice, prior to the commencement of construction, Tenant
shall submit to Landlord, for Landlord’s review and approval, all plans, specifications and working drawings relating thereto, and Landlord shall select (with Tenant’s reasonable approval) the contractors to perform such improvement work.
Landlord shall not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant’s business resulting in any way from such damage or the repair thereof; provided however, that if such fire or other casualty shall
have damaged the Premises or Common Areas necessary to Tenant’s occupancy, Landlord shall allow Tenant a proportionate abatement of Rent to the extent the Premises and/or Common Areas are unavailable for Tenant’s use and occupancy
regardless of whether Landlord is reimbursed from the proceeds of rental interruption insurance purchased or required to be purchased by Landlord as part of Operating Expenses, during the time and to the extent the Premises are unfit for occupancy
for the purposes permitted under this Lease, and not occupied by Tenant as a result thereof; provided, further, however, that if the damage or destruction is due to the negligence or intentional misconduct of Tenant, Tenant shall be responsible for
any applicable deductible (which shall be payable to Landlord upon demand). 
  
 11.2 Landlord’s Option to Repair. Notwithstanding the TCCs of Section 11.1 of this Lease, Landlord may elect not to rebuild and/or restore the Premises, Building and/or Project, and
instead terminate this Lease (or the applicable portion thereof), by notifying Tenant in writing of such termination within sixty (60) days after the date of discovery of the damage, such notice to include a termination date 

  

 16 

 
giving Tenant sixty (60) days to vacate the Premises, but Landlord may so elect only if the Building or Project shall be damaged by fire or other casualty or
cause, if one or more of the following conditions is present: (i) in Landlord’s reasonable judgment, repairs cannot reasonably be completed within twelve (12) months after the date of discovery of the damage (when such repairs are made without
the payment of overtime or other premiums); (ii) the damage is not fully covered by Landlord’s insurance policies (provided Landlord is deemed to have carried (except with regard to any applicable deductibles) one hundred percent (100%)
replacement cost fire/casualty insurance); or (iii) the damage occurs during the last nine (9) months of the Lease Term. If Landlord does not elect to terminate this Lease pursuant to Landlord’s termination right as provided above, and if the
repairs to be made by Landlord are not actually completed within twelve (12) months of 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 to be made by Landlord 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 five (5) business days following Landlord’s receipt of the Damage Termination Notice. Notwithstanding the foregoing, if Tenant delivers a Damage
Termination Notice to Landlord, then Landlord shall have the right to suspend the occurrence of the Damage Termination Date for a period of thirty (30) days after the Damage Termination Date set forth in the Damage Termination Notice by delivering
to Tenant, within five (5) business days of Landlord’s receipt of the Damage Termination Notice, a certificate of Landlord’s contractor responsible for the repair of the damage certifying that it is such contractor’s good faith
judgment that the repairs to be made by Landlord shall be substantially completed within thirty (30) days after the Damage Termination Date. If such repairs shall be substantially completed prior to the expiration of such thirty-day period, then the
Damage Termination Notice shall be of no force or effect, but if such repairs shall not be substantially completed within such thirty-day period, then this Lease shall termination upon the expiration of such thirty-day period. 
  
 11.3 Waiver of Statutory Provisions. The provisions of this
Lease, including this Article 11, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, the Building or the Project, and any statute or
regulation of the State of California, including, without limitation, Sections 1932(2) and 1933(4) of the California Civil Code and any other existing or future Applicable Laws, with respect to any rights or obligations concerning damage or
destruction in the absence of an express agreement between the parties, and any other statute or regulation, now or hereafter in effect, shall have no application to this Lease or any damage or destruction to all or any part of the Premises, the
Building or the Project. 
  
 ARTICLE 12 - NON-WAIVER

  
 No provision of this Lease shall be deemed waived by
either party hereto unless expressly waived in a writing signed thereby. The waiver by either party hereto of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of same or any
other term, covenant or condition herein contained. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure
of Tenant to pay the particular Rent so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such Rent. No acceptance of a lesser amount than the Rent herein stipulated shall be deemed a waiver of
Landlord’s right to receive the full amount due, nor shall any endorsement or statement on any check or payment or any letter accompanying such check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment
without prejudice to Landlord’s right to recover the full amount due. No receipt of monies by Landlord from Tenant after the termination of this Lease shall in any way alter the length of the Lease Term or of Tenant’s right of possession
hereunder, or after the giving of any notice shall reinstate, continue or extend the Lease Term or affect any notice given Tenant prior to the receipt of such 

  

 17 

 
monies, it being agreed that after the service of notice or the commencement of a suit, or after final judgment for possession of the Premises, Landlord may
receive and collect any Rent due, and the payment of said Rent shall not waive or affect said notice, suit or judgment. 
  
 ARTICLE 13 - CONDEMNATION 
  
 If the Premises or any portion thereof are taken under the power of eminent domain, or sold under the threat of the exercise of said power (collectively,
“condemnation”), this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than thirty three and one-third percent (33 1/3%) of the floor
area of the Premises, or more than thirty three and one-third percent (33 1/3%) of that portion of the Project designated as parking for the Building, is taken by condemnation, then either Landlord or Tenant, within ten (10) days after the
condemning authority shall have taken possession, may elect to terminate this Lease as of the date the condemning authority takes such possession by written notice given to the other party. If neither Landlord and Tenant so elects to terminate this
Lease, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in the proportion that the floor area of the Premises taken bears to the total floor area of the
Premises. No reduction of Rent shall occur if the only area taken is that which does not have the Premises located thereon and there is no material and adverse effect on Tenant’s ability to operate in the Premises. Any award for the taking of
all or any part of the Premises under the power of eminent domain or any payment made under threat of the exercise of such power shall be the sole property of Landlord, whether such award shall be made as compensation for diminution in value of the
leasehold or for the taking of the fee, or as severance damages; provided, however, that Tenant shall be entitled to any separate award for loss of or damage to Tenant’s trade fixtures and removable personal property, loss of good will, the
unamortized book value or cost (whichever is less) of the Alterations made to the Premises by Tenant at Tenant’s sole cost and expense and relocation costs. In the event that this Lease is not terminated by reason of such condemnation and as
permitted by applicable law, Landlord shall to the extent of severance damages received by Landlord in connection with such condemnation, repair any damage to the Premises caused by such condemnation, except to the extent that Tenant has been
reimbursed for such amounts by the condemning authority. Tenant shall pay any amount in excess of such severance damage required to complete such repair. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of
The California Code of Civil Procedure. 
  
 ARTICLE 14 -
ASSIGNMENT AND SUBLETTING 
  
 14.1 Transfers.
Tenant shall not, without the prior written consent (except as otherwise provided in Section 14.8 below) of Landlord, which consent will not be unreasonably withheld, conditioned or delayed, assign, mortgage, pledge, hypothecate,
encumber, or permit any lien to attach to, or otherwise transfer, this Lease or any interest hereunder, permit any assignment, or other transfer of this Lease or any interest hereunder by operation of law, sublet the Premises or any part thereof, or
enter into any license or concession agreements or otherwise permit the occupancy or use of the Premises or any part thereof by any persons other than Tenant and its employees and contractors (all of the foregoing are hereinafter sometimes referred
to collectively as “Transfers” and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a “Transferee”). If Tenant desires Landlord’s consent to any Transfer,
Tenant shall notify Landlord in writing, which notice (the “Transfer Notice”) shall include (i) the proposed effective date of the Transfer, which shall not be less than thirty (30) days nor more than one hundred eighty (180)
days after the date of delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the “Subject Space”), (iii) all of the TCCs of the proposed Transfer and the consideration therefor,
including calculation of the “Transfer Premium,” as that term is defined in Section 14.3 below, in connection with such Transfer, the name and address of the proposed Transferee, and a copy of all existing executed and/or
proposed documentation 

  

 18 

 
pertaining to the proposed Transfer, including all existing operative documents to be executed to evidence such Transfer or the agreements incidental or
related to such Transfer, (iv) to the extent reasonably necessary for Landlord to make its consent determination, current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, business credit and personal
references and history of the proposed Transferee and any other information required by Landlord which will enable Landlord to determine the financial responsibility, character, and reputation of the proposed Transferee, nature of such
Transferee’s business and proposed use of the Subject Space and (v) an executed estoppel certificate from Tenant. Any Transfer made without Landlord’s prior written consent shall, at Landlord’s option, be null, void and of no effect,
and shall, at Landlord’s option, constitute a default by Tenant under this Lease. Whether or not Landlord consents to any proposed Transfer, Tenant shall reimburse Landlord for all reasonable and actual out-of-pocket third-party costs and
expenses incurred by Landlord in reviewing of a proposed Transfer within fifteen (15) days after Landlord’s written demand. 
  
 14.2 Landlord’s Consent. Landlord shall not unreasonably withhold its consent to any proposed Transfer of the Subject Space to the
Transferee on the terms specified in the Transfer Notice. Without limitation as to other reasonable grounds for withholding consent, the parties hereby agree that it shall be reasonable under this Lease and under any Applicable Laws for Landlord to
withhold consent to any proposed Transfer where one or more of the following apply: 
  
 14.2.1 The Transferee is of a character or reputation or engaged in a business which is not consistent with the quality of the Building or
the Project; 
  
 14.2.2 The Transferee intends to
use the Subject Space for purposes which are not permitted under this Lease; 
  
 14.2.3 The Transferee is either a governmental agency or instrumentality thereof; 
  
 14.2.4 Tenant is or has been in default beyond any applicable notice and cure period under this Lease prior to the date of the Transfer;
or 
  
 14.2.5 The Transferee’s financial
worth and/or financial stability is less than the greater of Tenant’s financial net worth and/or financial stability as of the Effective Date or at the time of the request for consent. 
  
 If Landlord consents to any Transfer pursuant to the TCCs of this Section
14.2, Tenant may within one (1) month after Landlord’s consent, but not later than the expiration of said one-month period, enter into such Transfer of the Premises or portion thereof, upon substantially the same terms and conditions as are
set form in the Transfer Notice furnished by Tenant to Landlord pursuant to Section 14.1 of this Lease, provided that if there are any material changes in the terms and conditions from those specified in the Transfer Notice (i) such that
Landlord would initially have been entitled to refuse its consent to such Transfer under this Section 14.2, or (ii) which would cause the proposed Transfer to be materially more favorable to the Transferee than the terms set forth in
Tenant’s original Transfer Notice, Tenant shall again submit the Transfer to Landlord for its approval and other action under this Article 14. Tenant shall indemnify, defend and hold harmless Landlord from any and all liability, losses,
claims, damages, costs, expenses, causes of action and proceedings involving any third party or parties (including without limitation Tenant’s proposed subtenant or assignee) who claim they were damaged by Landlord’s alleged wrongful
withholding or conditioning of Landlord’s consent. 
  
 14.3
Transfer Premium. If Landlord consents to a Transfer, as a condition thereto which the parties hereby agree is reasonable, Tenant shall pay to Landlord fifty percent (50%) of any “Transfer Premium,” as that term is defined in
this Section 14.3, received by Tenant from such Transferee. 

  

 19 

 
“Transfer Premium” shall mean all rent, additional rent or other consideration payable by such Transferee in connection with the Transfer in
excess of the Rent and Additional Rent payable by Tenant under this Lease during the term of the Transfer on a per Square Foot basis if less than all of the Premises is transferred, after deducting all expenses incurred by Tenant (i) in making any
changes, alterations and improvements to the Premises in connection with the Transfer, and (ii) any brokerage commissions and reasonable attorneys fees in connection with the Transfer. “Transfer Premium” shall also include, but not be
limited to, bonus money or other cash consideration paid by Transferee to Tenant in connection with such Transfer, and any payment in excess of fair market value for services rendered by Tenant to Transferee or for assets, fixtures, inventory,
equipment, or furniture transferred by Tenant to Transferee in connection with such Transfer. 
  
 14.4 Intentionally Deleted. 
  
 14.5 Effect of Transfer. If Landlord consents to a Transfer, (i) the TCCs of this Lease shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed consent to
any further Transfer by either Tenant or a Transferee, (iii) Tenant shall deliver to Landlord, promptly after execution, an original executed copy of all documentation pertaining to the Transfer, and (iv) no Transfer relating to this Lease or
agreement entered into with respect thereto, whether with or without Landlord’s consent, shall relieve Tenant from any liability under this Lease. Landlord or its authorized representatives shall have the right at all reasonable times and upon
reasonable prior notice to audit the books, records and papers of Tenant relating to any Transfer, and shall have the right to make copies thereof. If the Transfer Premium respecting any Transfer shall be found understated, Tenant shall, within
thirty (30) days after demand, pay the deficiency, and if understated by more than five percent (5%), Tenant shall pay Landlord ‘s costs of such audit. 
  
 14.6 Change of Control. The term Transfer, as used in this Article 14, includes the following:
(i) if Tenant is a partnership or a limited liability company, the transfer, voluntary or involuntary, either by a single transaction or in a series of transactions, of a Controlling Interest in Tenant, or the dissolution of Tenant, whether
voluntary or involuntary; (ii) if Tenant is a corporation, any dissolution, merger, consolidation or other reorganization of Tenant involving an acquisition of a Controlling Interest in Tenant, or the transfer, voluntary or involuntary, either by a
single transaction or in a series of transactions, of a Controlling Interest in Tenant (except that a Transfer shall not include any such transfer of a Controlling Interest in Tenant occurring at a time when the stock of Tenant is publicly traded on
a nationally recognized stock exchange or over the counter), or the sale, by a single transaction or series of transactions within any one (1) year period of all or substantially all of Tenant’s assets (except in connection with an initial
public offering of the stock of Tenant on a nationally recognized stock exchange or over the counter); (iii) if Tenant is a trust, the transfer, voluntarily or involuntarily, of either a Controlling Interest in the trustee of such trust or more than
fifty percent (50%) of the trust’s assets; and (iv) if Tenant is any other form of entity a transfer, voluntary or involuntary, either by a single transaction or in a series of transactions, of a controlling interest in Tenant. As used herein,
the term “Controlling Interest” means (a) in the case of a partnership, limited liability company or other business entity, the ownership of partnership interests, membership interests or other indicia of ownership constituting more
than fifty percent (50%) of the ownership interests in Tenant (provided that in the case of a limited partnership or manager controlled limited liability company, it also means the ownership of more than fifty percent (50%) of the ownership
interests in the general partner or manager of Tenant), and (b) in the case of a corporation, the ownership and/or the right to vote stock constituting more than fifty percent (50%) of the voting stock of Tenant. 
  
 14.7 Occurrence of Default. Any Transfer hereunder shall
be subordinate and subject to the provisions of this Lease, and if this Lease shall be terminated during the term of any Transfer, Landlord shall have the right to: (i) treat such Transfer as cancelled and repossess the Subject Space by any lawful

  

 20 

 
means, or (ii) require that such Transferee attorn to and recognize Landlord as its landlord under any such Transfer. If Tenant shall be in default under
this Lease, Landlord is hereby authorized to direct any Transferee to make all payments under or in connection with the Transfer directly to Landlord (which Landlord shall apply towards Tenant’s obligations under this Lease) until such default
is cured. Such Transferee shall rely on any representation by Landlord that Tenant is in default hereunder, without any need for confirmation thereof by Tenant. Upon any assignment, the assignee shall assume in writing all obligations and covenants
of Tenant thereafter to be performed or observed under this Lease. No collection or acceptance of rent by Landlord from any Transferee shall be deemed a waiver of any provision of this Article 14 or the approval of any Transferee or a release
of Tenant from any obligation under this Lease, whether theretofore or thereafter accruing. In no event shall Landlord’s enforcement of any provision of this Lease against any Transferee be deemed a waiver of Landlord’s right to enforce
any term of this Lease against Tenant or any other person. 
  
 14.8 Non-Transfers. Notwithstanding anything to the contrary contained in this Article 14, an assignment of this Lease or subletting of all or a portion of the Premises to any entity which acquires all or substantially
all of the assets of Tenant, or which acquires Tenant by merger of Tenant with such entity or a subsidiary thereof, or by purchase of shares of Tenant’s stock (in each such case, an “Acquiror”), or any assignment by virtue of a
merger involving an acquisition of a Controlling Interest in Tenant, shall not be deemed a Transfer under this Article 14, provided that at least five (5) business days prior to such assignment or sublease (i) Tenant provides Landlord with
reasonable evidence that any such entity maintains a net worth, calculated in accordance with generally accepted accounting principals, consistently applied, which exceeds the Tenant’s financial net worth and/or financial stability as of the
Effective Date or as of the effective date of such transaction, whichever is greater; and (ii) Tenant notifies Landlord of any such assignment or sublease, and such assignment or sublease is not a subterfuge by Tenant to avoid its obligations under
this Lease. In the event an assignment or sublease to an Acquiror is made pursuant to the TCCs of this Section 14.8, Tenant shall be relieved of its obligations under this Lease to the extent the same become the TCCs of such Acquiror pursuant
to such assignment or sublease. As used in this Section 14.8, “control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person or entity,
whether by ownership of voting securities, by contract or otherwise. 
  
 ARTICLE 15 - SURRENDER OF PREMISES 
  
 15.1
Surrender of Premises. No act or thing done by Landlord or any agent or employee of Landlord during the Lease Term shall be deemed to constitute an acceptance by Landlord of a surrender of the Premises unless such intent is
specifically acknowledged in writing by Landlord. The delivery of keys to the Premises to Landlord or any agent or employee of Landlord shall not constitute a surrender of the Premises or effect a termination of this Lease. The voluntary or other
surrender of this Lease by Tenant, whether accepted by Landlord or not, or a mutual termination hereof, shall not work a merger, and at the option of Landlord shall operate as an assignment to Landlord of all subleases or subtenancies affecting the
Premises or terminate any or all such subtenants or subtenancies. 
  
 15.2 Removal of Tenant Property by Tenant. Upon the expiration of the Lease Term, or upon any earlier termination of this Lease, Tenant shall, subject to the provisions of this Article 15,
quit and surrender possession of the Premises to Landlord in as good order and condition as when Tenant took possession and as thereafter improved by Tenant, reasonable wear and tear or repairs which are specifically made the responsibility of
Landlord hereunder excepted. Upon such expiration or termination, Tenant shall, at its sole expense, remove or cause to be removed from the Premises all Alterations, fixtures and equipment pursuant to Article 8, all debris and rubbish, and
such items of furniture, equipment, business and trade fixtures, free-standing cabinet work, movable partitions and other articles of personal property owned by Tenant or installed or placed by Tenant at its expense in the 

  

 21 

 
Premises, and Tenant shall repair at its own expense all damage to the Building to the extent resulting from such removal. 
  
 ARTICLE 16 - HOLDING OVER 
  
 If Tenant holds over after the expiration of the Lease Term or earlier
termination thereof, with or without the express or implied consent of Landlord, such tenancy shall be from month-to-month only, and shall not, except as set forth below, constitute a renewal hereof or an extension for any further term, and in such
case Rent shall be payable at a monthly rate equal to the product of (i) the Rent applicable during the last rental period of the Lease Term under this Lease, and (ii) one hundred fifty percent (150%). Such month-to-month tenancy shall be subject to
every other applicable TCCs contained herein. For purposes of this Article 16, a holding over shall include Tenant’s remaining in the Premises after the expiration or earlier termination of the Lease Term, as required pursuant to the
TCCs of Article 8, above, to remove any Alterations and/or restore any Building Standard Tenant Improvements. Nothing contained in this Article 16 shall be construed as consent by Landlord to any holding over by Tenant, and Landlord
expressly reserves the right to require Tenant to surrender possession of the Premises to Landlord as provided in this Lease upon the expiration or other termination of this Lease. The provisions of this Article 16 shall not be deemed to
limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. Except as otherwise specifically provided for in this Article 16 with regard to a Permitted Holdover Term, if Tenant fails to surrender the
Premises upon the termination or expiration of this Lease (or upon the expiration of the Permitted Holdover Term, if any), in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord
harmless from all loss, costs (including reasonable attorneys’ fees) and liability resulting from such failure, including, without limiting the generality of the foregoing, any reasonable claims made by any succeeding tenant founded upon such
failure to surrender and any lost profits to Landlord resulting therefrom. 
  
 ARTICLE 17 - ESTOPPEL CERTIFICATES 
  
 Within ten (10) business days following a request in writing by Landlord Tenant, shall execute, acknowledge and deliver to Landlord an estoppel certificate, which, as submitted by Landlord, shall be substantially in a
commercially reasonable, mutually agreeable form, indicating therein any exceptions thereto that may exist at that time, and shall also contain any other information reasonably requested by Landlord or Landlord’s mortgagee or prospective
mortgagee. Any such certificate may be relied upon by any prospective mortgagee or purchaser of all or any portion of the Project. 
  
 ARTICLE 18 - SUBORDINATION 
  
 This Lease shall be subject and subordinate to all present and future ground or underlying leases of the Building or Project and to the lien of any
mortgage, trust deed or other encumbrances now or hereafter in force against the Building or Project or any part thereof, if any, and to all renewals, extensions, modifications, consolidations and replacements thereof, and to all advances made or
hereafter to be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages, trust deeds or other encumbrances, or the Landlords under such ground lease or underlying leases, require in writing that this Lease be
superior thereto. Landlord’s delivery to Tenant of a commercially reasonable subordination, non-disturbance and attornment agreement (the “Nondisturbance Agreement”) in favor of Tenant from any ground lessor, mortgage holders
or lien holders of Landlord who obtain a mortgage, deed of trust, ground lease or other encumbrance after the Effective Date shall be in consideration of, and a condition precedent to, Tenant’s agreement to be bound by the TCCs of this
Article 18 and Section 1.11 hereof. Subject to the terms of any applicable Nondisturbance Agreement, Tenant covenants and agrees in the event any proceedings are brought for the foreclosure of any such mortgage or deed in lieu thereof

  

 22 

 
(or if any ground lease is terminated), to attorn, without any deductions or set-offs whatsoever, to the lienholder or purchaser or any successors thereto
upon any such foreclosure sale or deed in lieu thereof (or to the ground Landlord), if so requested to do so by such purchaser or lienholder or ground Landlord, and to recognize such purchaser or lienholder or ground Landlord as the Landlord under
this Lease, provided such lienholder or purchaser or ground Landlord shall agree to accept this Lease and not disturb Tenant’s occupancy, so long as Tenant is not in default of this Lease. Landlord’s interest herein may be assigned as
security at any time to any lienholder. Tenant shall, within ten (10) business days of request by Landlord, execute such further instruments or assurances as Landlord may reasonably deem necessary to evidence or confirm the subordination or
superiority of this Lease to any such mortgages, trust deeds, ground leases or underlying leases in accordance with the TCCs of this Article 18. Subject to the terms of any applicable Nondisturbance Agreement, Tenant waives the provisions of
any current or future statute, rule or law which may give or purport to give Tenant any right or election to terminate or otherwise adversely affect this Lease and the obligations of the Tenant hereunder in the event of any foreclosure proceeding or
sale. In the event of the enforcement by the holder of any mortgage, trust deed or other encumbrance, any person succeeding to the interests of Landlord as a result of such enforcement shall not be bound by any payment of Rent for more than one (1)
month in advance. 
  
 ARTICLE 19 - DEFAULTS: REMEDIES

  
 19.1 Events of Default. The occurrence of
any of the following shall constitute a default of this Lease by Tenant: 
  
 19.1.1 Any failure by Tenant to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, when due unless such failure is cured within five (5) days after written notice from Landlord
that such payment was not received when due; or 
  
 19.1.2 Any failure by Tenant to observe or perform any other provision, covenant or condition of this Lease to be observed or performed by Tenant where such failure continues for thirty (30) days after written notice thereof from Landlord
to Tenant; provided that if the nature of such default is such that the same cannot reasonably be cured within a thirty (30) day period, Tenant shall not be deemed to be in default if it diligently commences such cure within such period and
thereafter diligently proceeds to rectify and cure such default; or 
  
 19.1.3 Abandonment of all of the Premises by Tenant; or 
  
 19.1.4 The failure by Tenant to observe or perform according to the provisions of Articles 5, 14, 17 or 18 of
this Lease where such failure continues for more than fifteen (15) days after notice from Landlord. 
  
 The notice periods provided herein are in lieu of, and not in addition to, any notice periods required by Applicable Laws. 
  
 19.2 Remedies Upon Default. Upon the occurrence of any event of
default by Tenant, Landlord shall have, in addition to any other remedies available to Landlord at law or in equity (all of which remedies shall be distinct, separate and cumulative), the option to pursue any one or more of the following remedies,
each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever. 
  
 19.2.1 Terminate this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so,
Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises 

  

 23 

 
and expel or remove Tenant and any other person who may be occupying the Premises or any part thereof, without being liable for prosecution or any claim or
damages therefor; and Landlord may recover from Tenant the following: 
  

	 	(i)	The worth at the time of any unpaid rent which has been earned at the time of such termination; plus 

  

	 	(ii)	The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss
that Tenant proves could have been reasonably avoided; plus 

  

	 	(iii)	The worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the time of award exceeds the amount of such rental loss that Tenant
proves could have been reasonably avoided; plus 

  

	 	(iv)	At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by Applicable Laws. 

  
 The term “rent” as used in this Section 19.2 shall be
deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the TCCs of this Lease, whether to Landlord or to others. As used in Paragraphs 19.2.1(i) and (ii), above, the “worth at the time of award” shall
be computed by allowing interest at the rate set forth in Article 25 of this Lease, but in no case greater than the maximum amount of such interest permitted by law. As used in Paragraph 19.2.1(iii) above, the “worth at the time of
award” shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 
  
 19.2.2 Landlord shall have the remedy described in California Civil Code Section 1951.4 (lessor may continue
lease in effect after lessee’s breach and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations). Accordingly, if Landlord does not elect to terminate this Lease on
account of any default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover all rent as it becomes due. 
  
 19.2.3 Landlord shall at all times have the rights and
remedies (which shall be cumulative with each other and cumulative and in addition to those rights and remedies available under Sections 19.2.1 and 19.2.2, above, or any law or other provision of this Lease), without prior demand or
notice except as required by Applicable Law, to seek any declaratory, injunctive or other equitable relief, and specifically enforce this Lease, or restrain or enjoin a violation or breach of any provision hereof. 
  
 19.3 Subleases. Whether or not Landlord elects to terminate
this Lease on account of any default by Tenant, as set forth in this Article 19, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other consensual arrangements for possession entered into by Tenant
and affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such subleases, licenses, concessions or arrangements. In the event of Landlord’s election to succeed to Tenant’s interest in any
such subleases, licenses, concessions or arrangements, Tenant shall, as of the date of notice by Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder. 
  

 24 

 19.4 Efforts to Relet. No re-entry or repossession, repairs, maintenance, changes,
alterations and additions, reletting, appointment of a receiver to protect Landlord’s interests hereunder, or any other action or omission by Landlord shall be construed as an election by Landlord to terminate this Lease or Tenant’s right
to possession, or to accept a surrender of the Premises, nor shall same operate to release Tenant in whole or in part from any of Tenant’s obligations hereunder, unless express written notice of such intention is sent by Landlord to Tenant.
Tenant hereby irrevocably waives any right otherwise available under any law to redeem or reinstate this Lease. 
  
 19.5 Landlord Default. Notwithstanding anything to the contrary set form in this Lease, Landlord shall be in default in the
performance of any obligation required to be performed by Landlord pursuant to this Lease if Landlord fails to perform such obligation within thirty (30) days after the receipt of notice from Tenant specifying in detail Landlord’s failure to
perform; provided, however, if the nature of Landlord’s obligation is such that more than thirty (30) days are required for its performance, then Landlord shall not be in default under this Lease if it shall commence such performance within
such thirty (30) day period and thereafter diligently pursues the same to completion. As a material part of the consideration for this Lease, Tenant hereby waives any benefits of any applicable existing or future Applicable Laws, including the
provisions of California Civil Code Sections 1932(1), 1941 and 1942, that allows a tenant to make repairs at its landlord’s expense. 
  
 ARTICLE 20 - COVENANT OF QUIET ENJOYMENT 
  
 Landlord covenants that Tenant shall, during the Lease Term, peaceably and quietly have, hold and enjoy the Premises subject to the terms, covenants,
conditions, provisions and agreements hereof without interference by any persons lawfully claiming by or through Landlord. The foregoing covenant is in lieu of any other covenant express or implied. 
  
 ARTICLE 21 - SECURITY DEPOSIT 
  
 21.1 Security Deposit. Concurrent with Tenant’s
execution of this Lease, Tenant shall deposit with Landlord a security deposit (the “Security Deposit”) in the form of an irrevocable standby letter of credit (“Letter of Credit”) in the amount set forth in
Section 7 of the Summary. The Security Deposit shall secure the performance by Tenant of all of Tenant’s obligations under this Lease. If any event shall occur that constitutes a default by Tenant, or if any event shall occur that, with
the passage of time, the giving of notice or both, otherwise would constitute a default under any provisions of this Lease, including, but not limited to, the provisions relating to the payment of Rent, the removal of property and the repair of
resultant damage, Landlord may, without notice to Tenant, but shall not be required to draw upon all or a portion of the Letter of Credit for the payment of any Rent or any other sum in default and Tenant shall, upon demand therefor, restore the
Letter of Credit to its original amount. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, or any successor statute. 
  
 21.2 Letter of Credit Terms. The Letter of Credit shall (i) name Landlord as its sole beneficiary; (ii) expressly permit multiple or
partial draws up to the stated amount of the Letter of Credit; (iii) be issued by a bank that is acceptable to Landlord, insured by the FDIC, and having a local office in Santa Clara County, California that will negotiate the Letter of Credit; (iv)
expressly provide that it is transferable to Landlord or to Landlord’s assignee without charge; and (v) provide that Landlord may draw on the Letter of Credit in whole or in part by submitting to the issuing bank a statement signed only by
Landlord that Landlord is entitled to draw the Letter of Credit pursuant to the terms and conditions of this Lease; provided, however, that in any event the Letter of Credit shall be in a form reasonably acceptable to Landlord. Tenant shall pay all
expenses incurred by Tenant in maintaining the Letter of Credit. The Letter of Credit shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant without written prior consent of Landlord. If the bank from which Tenant has
obtained the 

  

 25 

 
Letter of Credit shall become insolvent, become the subject of receivership, conservatorship, reorganization or closure action by federal or state banking
authorities, or if any holding company owning or controlling more than fifty percent (50%) of the ownership interests in such bank shall become insolvent, file a petition in bankruptcy or similar proceeding, make an assignment for the benefit of its
creditors, consent to the appointment of a receiver or conservator or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws or any other Applicable
Laws or statute of the United States or any state thereof, then Tenant shall obtain a replacement Letter of Credit in accordance with all of the terms of this Article 21 within ten (10) days of such act from another bank that meets the
requirements of this Section 21.2 and which bank is satisfactory to Landlord. The Letter of Credit shall remain in effect at all times during the Lease Term and shall have a term of not less than the Lease Term plus one hundred twenty (120)
days after expiration thereof. If Tenant has an option to extend the Lease Term, Tenant shall obtain a renewal of the Letter of Credit or replacement thereof which complies with all of the provisions of this Article 21 and deliver such Letter
of Credit to Landlord prior to commencement of the extended Lease Term. The term of the replacement Letter of Credit shall be for the period of the extended Lease Term, plus ninety (90) days. If Tenant shall fail to provide such replacement Letter
of Credit to Landlord prior to commencement of the extended Lease Term, Landlord may draw upon the existing Letter of Credit in full or in part, in Landlord’s sole discretion, and hold the proceeds thereof as part of the Cash Deposit or apply
them in accordance with the terms of this Article 21. 
  
 ARTICLE 22 - TELECOMMUNICATIONS EQUIPMENT 
  
 At any time during the Lease Term, subject to the TCCs of this Article 22 and Article 8 of this Lease, Tenant may install, at Tenant’s sole cost and expense, but without the payment of any Rent or a license or similar fee
or charge, a satellite or microwave dish or other communications, HVAC or other equipment servicing the business conducted by Tenant from within the Premises (all such equipment, including non-telecommunication equipment is, for the sake of
convenience, defined collectively as the “Telecommunications Equipment”) upon the roof of the Building, for Tenant’s personal use and not for any other commercial purpose. The physical appearance and the size of the
Telecommunications Equipment shall be subject to Landlord’s reasonable approval, the location of any such installation of the Telecommunications Equipment shall be designated by Tenant subject to Landlord’s reasonable approval and Landlord
may require Tenant to install screening around such Telecommunications Equipment, at Tenant’s sole cost and expense, as reasonably designated by Landlord. Tenant shall maintain such Telecommunications Equipment at Tenant’s sole cost and
expense. In the event Tenant elects to exercise its right to install the Telecommunication Equipment, then Tenant shall give Landlord prior notice thereof. Tenant shall reimburse to Landlord the actual costs reasonably incurred by Landlord in
approving such Telecommunications Equipment. Tenant shall remove such Telecommunications Equipment upon the expiration or earlier termination of this Lease and shall return the affected portion of the rooftop and the Building to the condition the
rooftop and the Building would have been in had no such Telecommunications Equipment been installed (reasonable wear and tear accepted). Such Telecommunications Equipment shall be installed pursuant to plans and specifications approved by Landlord,
which approval will not be unreasonably withheld, conditioned, or delayed. Such Telecommunications Equipment shall, in all instances, comply with applicable governmental laws, codes, rules and regulations. Except for the “Approved Landlord
Use,” as that term is set forth hereinbelow, Tenant’s rooftop rights with regard to the Telecommunications Equipment shall be exclusive and complete; provided, however, such exclusive and complete use of the rooftop shall be personal
to the Tenant, and no other parties may use the Telecommunications Equipment without Landlord’s prior written consent in Landlord’s sold and absolute discretion. “Approved Landlord Use,” for purposes of this Article
22, shall mean Landlord’s personal use of the rooftop in conjunction with its standard (internal) rooftop uses; provided, however, in no event shall the Approved Landlord Use (i) include any re-selling or leasing of any rooftop space to an
unaffiliated third party, (ii) be used as a profit center for 

  

 26 

 
Landlord, or (iii) materially interfere with (or preclude the installation of) Tenant’s Telecommunications Equipment. 
  
 ARTICLE 23 - SIGNS 
  
 23.1 Within Tenant’s Premises. Tenant, at its sole
cost and expense, may install identification signage anywhere within the Premises including in the elevator lobby and corridors of the Premises, provided that such signs must not be visible from the exterior of the Building. The lobby and corridor
signage rights within the Building shall be exclusive to Tenant. 
  
 23.2 Prohibited Signage and Other Items. Except as otherwise provided in this Article 23, Tenant may not install any signs on the exterior or roof of the Project or the Common Areas without Landlord’s prior
written consent. In addition, any signs, window coverings, or blinds (even if the same are located behind the Landlord-approved window coverings for the Building) within the Premises, or other items visible from the exterior of the Premises or
Building, shall be subject to the prior written approval of Landlord, which shall not be unreasonably withheld, conditioned or delayed; provided, however, Landlord may require that a uniform exterior appearance of the Building be maintained. Any
signs, notices, logos, pictures, names or advertisements which are installed and that have not been separately approved by Landlord may be removed without notice by Landlord at the sole expense of Tenant. 
  
 23.3 Tenant’s Signage. 
  
 23.3.1 Tenant’s Signage Rights. For
purposes of this Lease, “Tenant’s Signage” shall mean (i) the “Premises Signage”, and (ii) either the “Building 5 Signage,” or the “Parking Structure One Building Signage,” as those terms are
defined in Sections 23.3.1.1 and 23.3.1.2, below, as the case may be. Tenant’s rights under this Article 23 shall bind any purchaser successor in ownership of Building 5 or the Parking Structure even if such purchaser or successor
does not become the “Landlord” hereunder; provided, however, that Tenant’s Signage under romanette (ii), above, is personal to the undersigned Tenant (and any Acquiror(s) pursuant to Section 14.8). 
  
 23.3.1.1 Premises Signage. Tenant shall be
entitled to install the following signage in connection with Tenant’s lease of the Premises (collectively, the “Premises Signage”): (i) one (1) sign identifying Tenant’s name and logo located at the front or side of the
Building; and (ii) one (1) sign on the monument located directly in front of the Building (the “Building 6 Monument Sign”). Tenant’s signage rights on such Building 6 Monument Sign shall be exclusive with regard to the Building
6 Monument Sign, and Tenant may also identify an Acquirer on the Building 6 Monument Sign. 
  
 23.3.1.2 Building 5 Signage or Parking Structure 1 Building Signage. Tenant shall be entitled to install either, but not
both, of the following signage: (i) two (2) signs on Parking Structure One facing Highway 237; provided, however, the Parking Structure 1 Building Signage shall not be exclusive; or (ii) in the event Tenant is unable to obtain the necessary
approvals for the Parking Structure 1 Building Signage, one (1) sign identifying Tenant’s name and logo located on the roof of Building 5; provided, however, such roof signage shall not be exclusive (and Tenant’s sign shall be in addition
to, not in lieu of existing signage located on the roof of Building 5). 
  
 23.3.2 Specifications and Permits. Tenant’s Signage shall set forth Tenant’s name and logo as determined by Tenant in its sole discretion and as reasonably approved by Landlord. The graphics,
materials, color, design, lettering, lighting, size, illumination, specifications and exact location of Tenant’s Signage (collectively, the “Sign Specifications”) shall be subject to the prior written approval of Landlord,
which approval shall not be unreasonably withheld, conditioned or delayed, and shall be 

  

 27 

 
consistent and compatible with the quality and nature of the Project and the Building Standard Signage Specifications. Tenant’s Signage shall be subject
to Tenant’s receipt of all required governmental permits and approvals and shall be subject to all Applicable Laws and to any covenants, conditions and restrictions affecting the Project. Landlord shall cooperate with Tenant and use its best
efforts to assist Tenant in obtaining all necessary governmental permits and approvals for Tenant’s Signage. Tenant hereby agrees that Landlord has made no representation or warranty to Tenant with respect to the probability of obtaining all
necessary approvals and permits for Tenant’s Signage. In the event Tenant does not receive the necessary approvals and permits for Tenant’s Signage, Tenant’s and Landlord’s rights and obligations under the remaining TCCs of this
Lease shall be unaffected. 
  
 23.3.3 Cost
and Maintenance. The costs of the actual signs comprising Tenant’s Signage and the installation, design, construction, and any and all other costs associated with Tenant’s Signage, including, without limitation, utility charges and
hook-up fees, permits, and maintenance and repairs shall be the sole responsibility of Tenant; provided that Tenant shall be responsible for the cost of Tenant’s sign panel on the Building 6 Monument Sign, but Landlord shall maintain all
monument signs set forth in this Article 23 in good condition and repair, the cost of which shall be included in Operating Expenses. Should Tenant’s Signage require repairs, as determined in Landlord’s reasonable judgment, Landlord
shall have the right to provide notice thereof to Tenant and Tenant (except as set forth above) shall cause such repairs to be performed within thirty (30) days after receipt of such Notice from Landlord at Tenant’s sole cost and expense;
provided, however, if such repairs are reasonably expected to require longer than thirty (30) days to perform, Tenant shall commence such repairs and/or maintenance within such thirty (30) day period and shall diligently prosecute such repairs and
maintenance to completion. Should Tenant fail to perform such repairs within the periods described in the immediately preceding sentence, Landlord shall have the right to cause such work to be performed and to charge Tenant as Additional Rent for
the actual cost of such work. Upon the expiration or earlier termination of this Lease, Tenant shall, at Tenant’s sole cost and expense, cause Tenant’s Signage to be removed and shall cause the areas in which such Tenant’s Signage was
located to be restored to the condition existing immediately prior to the placement of such Tenant’s Signage. If Tenant fails to timely remove such Tenant’s Signage or to restore the areas in which such Tenant’s Signage was located,
as provided in the immediately preceding sentence, then Landlord may perform such work, and all actual costs incurred by Landlord in so performing shall be reimbursed by Tenant to Landlord within thirty (30) days after Tenant’s receipt of an
invoice therefor. The TCCs of this Section 23.3.3 shall survive the expiration or earlier termination of this Lease. 
  
 ARTICLE 24 - COMPLIANCE WITH LAW 
  
 Tenant shall not do anything or suffer anything to be done in or about the Premises or the Project which will in any way conflict with any law, statute,
ordinance, decrees, codes, common law, judgments, orders, rulings, awards or other governmental or quasi-governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated including any “Environmental
Laws” as that term is defined in Section 30.33 of this Lease (“Applicable Laws”). At its sole cost and expense, Tenant shall promptly comply with all such governmental measures to the extent that such governmental
measures relate to Tenant’s particular manner of use of the Premises for other than general office purposes, the Tenant Improvements located in the Premises, or any Alterations thereof. Should any standard or regulation now or hereafter be
imposed on Landlord or Tenant by a state, federal or local governmental body charged with the establishment, regulation and enforcement of occupational, health or safety standards for employers, employees, landlords or tenants, then Tenant agrees,
at its sole cost and expense, to comply promptly with such standards or regulations to the extent such standards or regulations relate to Tenant’s particular manner of use of the Premises for other than general office purposes, the Tenant
Improvements located in the Premises, or any Alterations thereof; provided that Landlord shall comply with any standards or regulations which relate to the Base Building or the Building 

  

 28 

 
Systems, unless such compliance obligations are triggered by the Tenant Improvements or the Alterations in the Premises, in which event such compliance
obligations shall be performed by Tenant at Tenant’s sole cost and expense. The judgment of any court of competent jurisdiction or the admission by either party hereto in any judicial action, regardless of whether this other party is a party
thereto, that such party has violated any of said governmental measures, shall be conclusive of that fact as between Landlord and Tenant. Landlord shall comply with all Applicable Laws relating to the Project, Base Building and Building Systems,
provided that compliance with such Applicable Laws is not the responsibility of Tenant under this Lease, and provided further that Landlord’s failure to comply therewith would prohibit Tenant from obtaining or maintaining a certificate of
occupancy for the Premises, or would unreasonably and materially affect the safety of Tenant’s Parties or create a significant health hazard for Tenant’s Parties or otherwise materially interfere with or materially affect Tenant’s
Permitted Use and enjoyment of the Premises. Landlord shall be permitted to include in Operating Expenses any costs or expenses incurred by Landlord under this Article 24 to the extent consistent with, and amortized to the extent required by,
the TCCs of this Lease. 
  
 ARTICLE 25 - LATE CHARGES

  
 If any installment of Rent or any other sum due from
Tenant shall not be received by Landlord or Landlord’s designee within five (5) business days following the date when due (the “Cure Period”) on more than one occasion in any Lease Year, then Tenant shall pay to Landlord a late
charge equal to five percent (5%) of the overdue amount. The late charge shall be deemed Additional Rent and the right to require it shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall not be
construed as liquidated damages or as limiting Landlord’s remedies in any manner. In addition to the late charge described above, any Rent or other amounts owing hereunder which are not paid within the Cure Period shall bear interest from such
due date until paid at an annual interest rate equal to the Prime Rate (as stated under the column “Money Rates” in The Wall Street Journal) plus two percent (2%); provided, however, in no event shall such annual interest rate
exceed the highest annual interest rate permitted by Applicable Law. 
  
 ARTICLE 26 - LANDLORD’S RIGHT TO CURE DEFAULT: PAYMENTS BY TENANT 
  
 26.1 Landlord’s Cure. All covenants and agreements to be kept or performed by Tenant under this Lease shall be performed by Tenant at Tenant’s sole cost and expense and without any
reduction of Rent, except to the extent, if any, otherwise expressly provided herein. If Tenant shall fail to perform any obligation under this Lease, and such failure shall continue in excess of the time allowed under Section 19.1.2. above,
unless a specific time period is otherwise stated in this Lease, Landlord may, but shall not be obligated to, make any such payment or perform any such act on Tenant’s part without waiving its rights based upon any default of Tenant and without
releasing Tenant from any obligations hereunder. 
  
 26.2
Tenant’s Reimbursement. Except as may be specifically provided to the contrary in this Lease, Tenant shall pay to Landlord, within fifteen (15) days following delivery by Landlord to Tenant of receipts therefor: (i) sums
equal to expenditures reasonably made and obligations incurred by Landlord in connection with the remedying by Landlord of Tenant’s defaults pursuant to the provisions of Section 26.1: and (ii) sums equal to all losses, costs,
liabilities, damages and expenses referred to in Article 10 of this Lease. Tenant’s obligations under this Section 26.2 shall survive the expiration or sooner termination of the Lease Term. 
  

 29 

 ARTICLE 27 - ENTRY BY LANDLORD 
  
 Landlord reserves the right during normal business hours, when accompanied by a representative of Tenant and upon reasonable
advance notice to Tenant (except in the case of an emergency), and in compliance with Tenant’s reasonable security measures, to enter the Premises to (i) inspect them; (ii) show the Premises to prospective purchasers, mortgagees or, during the
last nine (9) months of the Lease Term, tenants, or to current or prospective mortgagees, ground or underlying lessors or insurers; (iii) post notices of nonresponsibility; or (iv) improve or repair the Premises or the Building, or for structural
alterations, repairs or improvements to the Building or the Building’s systems and equipment. Notwithstanding anything to the contrary contained in this Article 27, Landlord may enter the Premises at any time to (A) perform services
required of Landlord, including janitorial service; (B) take possession due to any breach of this Lease in the manner provided herein; and (C) during normal business hours, when accompanied by a representative of Tenant and upon forty-eight (48)
hours prior notice, perform any covenants of Tenant which Tenant fails to perform. Landlord may make any such entries without the abatement of Rent and may take such reasonable steps as required to accomplish the stated purposes. No action by
Landlord pursuant to this paragraph shall entitle Tenant to an abatement of rent or to terminate this Lease or otherwise release Tenant from any of Tenant’s obligations under this Lease, and Tenant hereby waives any claims for damages or for
any injuries or inconvenience to or interference with Tenant’s business, lost profits, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby, except with respect to damage to Tenant’s personal
property or the amount of any physical injury, but only to the extent caused by the gross negligence or willful misconduct of Landlord. For each of the above purposes, Landlord shall at all times have an electronic card key and key with which to
unlock all the doors in the Premises, excluding Tenant’s vaults, safes and special security areas designated in advance by Tenant (the “Security Areas”). Notwithstanding anything set forth in this Article 27 to the
contrary, Landlord shall have no access or inspection rights as to the Security Areas, except in the event of an emergency where such entry is reasonably required. In an emergency, Landlord shall have the right to use any means that Landlord may
deem proper to open the doors in and to the Premises, provided Landlord has reasonably attempted, but to no avail, to obtain Tenant’s immediate cooperation in connection therewith. No entry into the Premises by Landlord shall be deemed to be a
forcible or unlawful entry into, or a detainer of, the Premises, or an actual or constructive eviction of Tenant from any portion of the Premises. No provision of this Lease shall be construed as obligating Landlord to perform any repairs,
alterations or decorations except as otherwise expressly agreed to be performed by Landlord herein. 
  
 ARTICLE 28 - TENANT PARKING 
  
 Tenant and the Tenant’s parties (including Tenant’s visitors) shall be entitled to utilize, without charge, commencing on the Lease Commencement Date, the amount of unreserved parking set form in Section
8 of the Summary, for the Premises, which parking shall pertain to the Project parking areas. Separate and apart from the allotment of parking provided in the Summary, Landlord shall provide the number of handicapped parking spaces required by
Applicable Laws. Landlord hereby grants Tenant a license (the “License”) to use, on a nonexclusive basis, up to thirty five (35) parking spaces on a parcel adjacent to the Building which is not part of the Project, in the area shown
on Exhibit A (the “Licensed Parking Area”). The License shall remain in force until the expiration or earlier termination of this Lease, at which time the License shall automatically terminate. Tenant shall not be
required to pay Base Rent for the use of the Licensed Parking Area, but Tenant’s use thereof shall be subject to all of the other terms and conditions of this Lease (including without limitation Tenant’s insurance and indemnity obligations
hereunder). The License shall be binding on any successor owner of the Licensed Parking Area, and if, for any reason during the Lease Term Tenant is unable to use the Licensed Parking Area as contemplated hereunder, Tenant shall be entitled to
construct, at its sole expense, a covered walkway from “Parking Structure 1” (as so designated on Exhibit A), subject to the terms and conditions Articles 8 

  

 30 

 
and 9 hereof. Tenant shall cooperate with Landlord to attempt to require that Tenant Parties comply with the Rules and Regulations which are
prescribed from time to time by Landlord for the orderly operation and use of the parking areas where the parking is located, including any sticker or other identification system established by Landlord, Tenant’s cooperation in seeing that
Tenant’s employees and visitors also comply with such rules and regulations and Tenant not being in default under this Lease. Landlord specifically reserves the right to change the size, configuration, design, layout and all other aspects of
the Project parking areas and improvements (provided that Tenant’s parking rights are not reduced as a result thereof and as long as Tenant’s obligations are not materially or unreasonably increased as a result thereof and such change(s)
do not materially adversely affect Tenant’s use or occupancy of the Premises or create a security risk for Tenant or its employees) at any time upon thirty (30) days’ prior written notice and Tenant acknowledges and agrees that Landlord
may, without incurring any liability to Tenant and without any abatement of Rent under this Lease, from time to time, temporarily close-off or restrict access to the Project parking areas only for purposes of permitting or facilitating any such
construction, alteration or improvements, not to exceed, without Tenant’s approval, ten (10) business days in any calendar year. Landlord may delegate its responsibilities hereunder to a parking operator in which case such parking operator
shall have all the rights of control attributed hereby to the Landlord. The parking provided to by Tenant pursuant to this Article 28 is provided to Tenant solely for use by Tenant’s own personnel, visitors and Tenant’s occupants
and such parking spaces may not be transferred, assigned, subleased or otherwise alienated by Tenant, except on a pro-rata basis in connection with an assignment or subletting of the Premises permitted or approved in accordance with the TCCs of
Article 14. 
  
 ARTICLE 29 - RIGHT TO USE PERSONAL
PROPERTY 
  
 Landlord hereby grants to Tenant the right to
use the existing furniture and other personal property (collectively, the “Personal Property”) located in the Premises during the Lease Term at no additional cost. The Personal Property is more particularly listed on Exhibit
D attached hereto (“Inventory List”). Within thirty (30) days after the Lease Commencement Date, Landlord and Tenant shall conduct a “walk-through” inspection of the Premises to confirm the completeness and
accuracy of the Personal Property shown on the Inventory List. If as a result of the walk-through inspection, the parties determine that changes to the Inventory List are warranted, such list shall be updated and the parties agree to execute an
amendment to this Lease reflecting such changes to the Inventory List. Tenant shall be responsible for the maintenance and repair of the Personal Property during the Lease Term at its sole cost and expense and shall insure the Personal Property as
part of Tenant’s property insurance required to be carried hereunder. So long as this Lease is not terminated due to any default beyond applicable notice and cure periods by Tenant, then Tenant shall be entitled to purchase the Personal
Property from Landlord concurrently with the expiration of the Lease Term for Ten Dollars ($10.00); provided, however, that Tenant shall not be entitled to purchase the generators and power screens included in the Personal Property. If Tenant is not
entitled to purchase the Personal Property or elects not to do so, then upon the expiration or earlier termination of this Lease, Tenant shall return the Personal Property to Landlord in its condition existing as of the Effective Date, reasonable
wear and tear excepted. 
  
 ARTICLE 30 - MISCELLANEOUS
PROVISIONS 
  
 30.1 Terms: Captions. The
words “Landlord” and “Tenant” as used herein shall include the plural as well as the singular. The necessary grammatical changes required to make the provisions hereof apply either to corporations or partnerships or individuals,
men or women, as the case may require, shall in all cases be assumed as though in each case fully expressed. The captions of Articles and Sections are for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of
such Articles and Sections. 
  

 31 

 30.2 Binding Effect. Subject to all other provisions of this Lease, each of the
covenants, conditions and provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit not only of Landlord and of Tenant, but also of their respective heirs, personal representatives, successors or
assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of Article 14 of this Lease. 
  
 30.3 No Air Rights. Except for Tenant’s rights regarding Telecommunications Equipment set forth in Article 22, no rights
to any view or to light or air over any property, whether belonging to Landlord or any other person, are granted to Tenant by this Lease. If at any time any windows of the Premises are temporarily darkened or the light or view therefrom is
obstructed by reason of any repairs, improvements, maintenance or cleaning in or about the Project, the same shall be without liability to Landlord and without any reduction or diminution of Tenant’s obligations under this Lease. 
  
 30.4 Transfer of Landlord’s Interest. Tenant
acknowledges that Landlord has the right to transfer all or any portion of its interest in the Project or Building and in this Lease, and Tenant agrees that in the event of any such transfer, provided that Landlord has transferred to a transferee
any Security Deposit held by Landlord in connection with this transaction, Landlord shall automatically be released from all liability under this Lease not accrued on or prior to the date of the transfer, and Tenant agrees to look solely to such
transferee for the performance of Landlord’s obligations hereunder for events occurring after the date of transfer and to attorn to such transferee. Tenant further acknowledges that Landlord may assign its interest in this Lease to a mortgage
lender as additional security. Such assignment shall not release Landlord from its obligations hereunder and Tenant shall continue to look to Landlord for the performance of its obligations hereunder. Landlord acknowledges that to the extent any
Landlord obligation or liability under this Lease is accrued prior to the date of such transfer or assignment which is not assumed by the transferee or assignee, the same shall remain an obligation of Landlord. 
  
 30.5 Prohibition Against Recording. Neither this Lease,
nor any memorandum, affidavit or other writing with respect thereto, shall be recorded by Landlord or Tenant or by anyone acting through, under or on behalf of either party. 
  
 30.6 Landlord’s Title. Landlord’s title is and always shall be paramount to the title of
Tenant. Nothing herein contained shall empower Tenant to do any act which can, shall or may encumber the title of Landlord. 
  
 30.7 Relationship of Parties. Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third
party to create the relationship of principal and agent, partnership, joint venturer or any association between Landlord and Tenant. 
  
 30.8 Application of Payments. Landlord shall have the right to apply payments received from Tenant pursuant to this Lease, regardless
of Tenant’s designation of such payments, to satisfy any obligations of Tenant hereunder, in such order and amounts as Landlord, in its sole discretion, may elect. 
  
 30.9 Time of Essence. Time is of the essence with respect to the performance of every
provision of this Lease in which time of performance is a factor. 
  
 30.10 Partial Invalidity. If any term, provision or condition contained in this Lease shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, provision or
condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this Lease shall be valid and enforceable as
permitted by law. 
  

 32 

 30.11 No Warranty. In executing and delivering this Lease, Tenant has not relied on
any representations (except as specifically set forth in this Lease), including, but not limited to, any representation as to the amount of any item comprising Additional Rent or the amount of the Additional Rent in the aggregate or that Landlord is
furnishing the same services to other tenants, at all, on the same level or on the same basis, or any warranty or any statement of Landlord which is not set forth herein or in one or more of the exhibits attached hereto. 
  
 30.12 Landlord Exculpation. The liability of Landlord or
the Landlord Parties to Tenant for any default by Landlord under this Lease or arising in connection herewith or with Landlord’s operation, management, leasing, repair, renovation, alteration or any other matter relating to the Project or the
Premises shall be limited solely and exclusively to Landlord’s equity interest in the Project. Neither Landlord, nor any of the Landlord Parties shall have any personal liability therefor, and Tenant hereby expressly waives and releases such
personal liability on behalf of itself and all persons claiming by, through or under Tenant. The limitations of liability contained in this Section 30.12 shall inure to the benefit of Landlord’s and the Landlord Parties’ present and
future partners, beneficiaries, officers, directors, trustees, shareholders, agents and employees, and their respective partners, heirs, successors and assigns. Under no circumstances shall any present or future partner of Landlord (if Landlord is a
partnership), or trustee or beneficiary (if Landlord or any partner of Landlord is a trust), have any liability for the performance of Landlord’s obligations under this Lease. Notwithstanding any contrary provision herein, neither Landlord nor
the Landlord Parties shall be liable under any circumstances for injury or damage to, or interference with, Tenant’s business, including but not limited to, loss of profits, loss of rents or other revenues, loss of business opportunity, loss of
goodwill or loss of use, or any other consequential damages. 
  
 30.13 Entire Agreement. It is understood and acknowledged that there are no oral agreements between the parties hereto affecting this Lease and this Lease constitutes the parties’ entire agreement with respect to
the leasing of the Premises and supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements and understandings, if any, between the parties hereto or displayed by Landlord to Tenant with respect to the subject
matter thereof, and none thereof shall be used to interpret or construe this Lease. None of the TCCs of this Lease can be modified, deleted or added to except in writing signed by the parties hereto. 
  
 30.14 Right to Lease. Landlord reserves the absolute
right to effect such other tenancies in the Project as Landlord in the exercise of its sole business judgment shall determine to best promote the interests of the Building or Project. Tenant does not rely on the fact, nor does Landlord represent,
that any specific tenant or type or number of tenants shall, during the Lease Term, occupy any space in the Building or Project. 
  
 30.15 Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God (including inclement
weather), 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 with regard to Rent and other charges to be paid by Tenant 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; provided, however, such extension shall not exceed sixty (60) consecutive days. 
  

30.16 Notices. All notices, demands, statements, designations, approvals or other communications (collectively, “Notices”)
given or required to be given by either party to the other 

  

 33 

 
hereunder or by law shall be in writing, shall be (A) sent by United States certified or registered mail, postage prepaid, return receipt requested
(“Mail”), (B) transmitted by telecopy, if such telecopy is promptly followed by a Notice sent by Mail, (C) delivered by a nationally recognized overnight courier, or (D) delivered personally. Any Notice shall be sent, transmitted,
or delivered, as the case may be, to Tenant at the appropriate address set forth in Section 10 of the Summary, or to such other place as Tenant may from time to time designate in a Notice to Landlord, or to Landlord at the addresses set forth
below, or to such other places as Landlord may from time to time designate in a Notice to Tenant. Any Notice will be deemed given (i) three (3) days after the date it is posted if sent by Mail, (ii) the date the telecopy is transmitted, (iii) the
date the overnight courier delivery is made, or (iv) the date personal delivery is made or attempted to be made. If Tenant is notified of the identity and address of Landlord’s mortgagee or ground or underlying lessor, Tenant shall give to such
mortgagee or ground or underlying lessor written notice of any default by Landlord under the TCCs of this Lease by registered or certified mail, and such mortgagee or ground or underlying lessor shall be given a reasonable opportunity to cure such
default prior to Tenant’s exercising any remedy available to Tenant. As of the date of this Lease, any Notices to Landlord and Tenant must be sent, transmitted, or delivered, as the case may be, to the following addresses: 
  
 Landlord: 
  
 3Com Corporation 
 5500 Great America Parkway 
 Santa Clara, CA 95052 
 Attention: Real Estate Department 
  
 with copies to: 
  
 3Com Corporation 
 5500 Great America Parkway 
 Santa Clara, CA 95052 
 Attention: Legal Department 
  
 And 
  
 Gray Cary Ware & Freidenrich LLP 
 400 Hamilton Ave. 
 Palo Alto, CA 94301-1833 
  
 Tenant: 
  
 Magma Design
Automation, Inc. 
 2 Results Way 
 Cupertino, CA 95104 
  
 with a copy to: 
  

 34 

 Magma Design Automation, Inc. 
 2 Results Way 
 Cupertino, CA 95104 
  
 And 

 
 Fenwick & West LLP 
 801 California Street 
 Mountain View, CA 94041 
  
 30.17 Joint and
Several. If there is more than one Tenant, the obligations imposed upon Tenant under this Lease shall be joint and several. 
  
 30.18 Authority. Each individual executing this Lease on behalf of Tenant hereby represents and warrants that Tenant is a duly formed
and existing entity qualified to do business in California and that Tenant has full right and authority to execute and deliver this Lease and that each person signing on behalf of Tenant is authorized to do so. In such event, Tenant shall, within
ten (10) days after execution of this Lease, deliver to Landlord satisfactory evidence of such authority and, if a corporation, upon demand by Landlord, also deliver to Landlord satisfactory evidence of (i) good standing in Tenant’s state of
incorporation and (ii) qualification to do business in California. 
  
 30.19 Attorneys’ Fees. In the event that either Landlord or Tenant should bring suit for the possession of the Premises, for the recovery of any sum due under this Lease, or because of the breach of any provision
of this Lease or for any other relief against the other, then all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party therein shall be paid by the other party, which obligation on the part of the other
party shall be deemed to have accrued on the date of the commencement of such action and shall be enforceable whether or not the action is prosecuted to judgment. 
  
 30.20 Governing Law. This Lease shall be construed and enforced in accordance with the laws of the
State of California. Except as otherwise provided herein, all disputes arising hereunder, and all legal actions and proceedings related thereto, shall be solely and exclusively initiated and maintained in the court with the appropriate jurisdiction
located in the City of San Diego, County of San Diego, State of California. IN ANY ACTION OR PROCEEDING ARISING HEREFROM, LANDLORD AND TENANT HEREBY CONSENT TO (I) THE JURISDICTION OF ANY COMPETENT COURT WITHIN THE STATE OF CALIFORNIA, AND (II)
SERVICE OF PROCESS BY ANY MEANS AUTHORIZED BY CALIFORNIA LAW. IN THE EVENT LANDLORD COMMENCES ANY SUMMARY PROCEEDINGS OR ACTION FOR NONPAYMENT OF BASE RENT OR ADDITIONAL RENT, TENANT SHALL NOT INTERPOSE ANY COUNTERCLAIM OF ANY NATURE OR DESCRIPTION
(UNLESS SUCH COUNTERCLAIM SHALL BE MANDATORY) IN ANY SUCH PROCEEDING OR ACTION, BUT SHALL BE RELEGATED TO AN INDEPENDENT ACTION AT LAW. 
  
 30.21 Submission of Lease. Submission of this instrument for examination or signature by Tenant does not constitute a reservation of,
option for or option to lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord and Tenant. 
  

 35 

 30.22 Brokers. Landlord and Tenant hereby warrant to each other that they have had
no dealings with any real estate broker or agent in connection with the negotiation of this Lease, excepting only the real estate brokers or agents specified in Section 11 of the Summary (the “Brokers”), and that they know of
no other real estate broker or agent who is entitled to a commission in connection with this Lease. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses,
liabilities, lawsuits, judgments, costs and expenses (including without limitation reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of any dealings with any real estate
broker or agent, other than the Brokers, occurring by, through, or under the indemnifying party. 
  
 30.23 Independent Covenants. This Lease shall be construed as though the covenants herein between Landlord and Tenant are independent
and not dependent and Tenant hereby expressly waives the benefit of any statute to the contrary and agrees that if Landlord fails to perform its obligations set forth herein, Tenant shall not be entitled to make any repairs or perform any acts
hereunder at Landlord’s expense or to any setoff of the Rent or other amounts owing hereunder against Landlord. 
  
 30.24 Project or Building Name and Signage. Landlord shall have the right at any time to change the name of the Project or Building
and to install, affix and maintain any and all signs on the exterior and on the interior of the Project or Building as Landlord may, in Landlord’s sole discretion, desire. Tenant shall not use the name of the Project or Building or use pictures
or illustrations of the Project or Building in advertising or other publicity or for any purpose other than as the address of the business to be conducted by Tenant in the Premises, without the prior written consent of Landlord. 
  
 30.25 Counterparts. This Lease may be executed in
counterparts with the same effect as if both parties hereto had executed the same document. Both counterparts shall be construed together and shall constitute a single lease. 
  
 30.26 Confidentiality. Landlord and Tenant each hereby acknowledge that the contents of this Lease and
any related documents are confidential information. Each of the parties shall keep such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other than Landlord’s or
Tenant’s partners, administrators, consultants, financial, legal, and space planning consultants, a prospective or current purchaser, mortgagee, or ground or underlying lessor of the Building or the Project, a prospective Transferee, and except
as required by Applicable Laws or in connection with a dispute or litigation hereunder or as required by subpoena. Tenant shall have the right to review and approve (with no less than seventy-two (72) hour advance notice) any press releases of
Landlord which reference Tenant by name (or makes reference in such a manner to preclude any entity other than Tenant). 
  
 30.27 Transportation Management. Tenant shall fully comply with all present or future programs required by Applicable Laws (provided
Landlord provides Tenant with sufficient prior notice of such program’s requirements) which are intended to manage parking, transportation or traffic in and around the Building, and in connection therewith, Tenant shall take responsible action
for the transportation planning and management of all employees located at the Premises by working directly with Landlord, any governmental transportation management organization or any other transportation- related committees or entities.

  
 30.28 No Violation. Landlord and Tenant hereby
warrant and represent that neither its execution of nor performance under this Lease shall cause either party to be in violation of any agreement, instrument, contract, law, rule or regulation by which it is bound, and each party shall protect,
defend, indemnify and hold the other harmless against any claims, demands, losses, damages, liabilities, 

  

 36 

 
costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, arising from Tenant’s breach of this warranty and
representation. 
  
 30.29 Communications and Computer
Lines. Tenant may install, maintain, replace, remove or use any communications or computer wires and cables (collectively, the “Lines”) at the Project in or serving the Premises, provided that (i) Tenant shall obtain
Landlord’s prior written consent, use an experienced and qualified contractor approved in writing by Landlord, and comply with all of the other provisions of Articles 7 and 8 of this Lease, (ii) the Lines therefor (including riser
cables) shall be appropriately insulated to prevent excessive electromagnetic fields or radiation, and shall be surrounded by a protective conduit reasonably acceptable to Landlord, (iii) any new or existing, Lines servicing the Premises shall
comply with all applicable governmental laws and regulations, and (iv) Tenant shall pay all costs in connection therewith. Landlord reserves the right to require that Tenant remove any Lines located in or serving the Premises which are installed in
violation of these provisions, or which are at any time in violation of any laws or cause a dangerous or potentially dangerous condition. 
  
 30.30 Hazardous Substances. 
  
 30.30.1 Definitions. For purposes of this Lease, the following definitions shall apply: “Hazardous
Material(s)” shall mean any substance or material that is described as a toxic or hazardous substance, waste, material, pollutant, contaminant or infectious waste, or any matter that in certain specified quantities would be injurious to the
public health or welfare, or words of similar import, in any of the “Environmental Laws,” as that term is defined below in this Section 30.31.1, or any other words which are intended to define, list or classify substances by reason
of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity or reproductive toxicity and includes, without limitation, asbestos, petroleum (including crude oil or any fraction thereof, natural gas, natural gas
liquids, liquefied natural gas, or synthetic gas usable for fuel, or any mixture thereof), petroleum products, polychlorinated biphenyls, urea formaldehyde, radon gas, radioactive matter, medical waste, and chemicals which may cause cancer or
reproductive toxicity. “Environmental Laws” shall mean all federal, state, local and quasi-governmental laws (whether under common law, statute or otherwise), ordinances, decrees, codes, rulings, awards, rules, regulations and
guidance documents now or hereafter be enacted or promulgated as amended from time to time, in any way relating to or regulating Hazardous Materials. 
  
 30.30.2 Compliance with Environmental Laws. Landlord covenants that during the Lease Term, Landlord shall comply with
all Environmental Laws in accordance with, and as required by, the TCCs of Article 24 of this Lease. 
  
 30.30.3 Indemnifications. Landlord, for itself and its successors, agrees to indemnify, defend, protect and hold
harmless the Tenant Parties from any and all Claims arising from any Hazardous Materials to the extent placed in, on, under or about the Project by Landlord or any Landlord Parties. Tenant, for itself and its successors, agrees to indemnify, defend,
protect and hold harmless the Landlord Parties from any and all Claims arising from any Hazardous Materials to the extent placed in, on, under or about the Premises or the Project by Tenant or Tenant Parties. 
  
 30.31 Development of the Project. 
  
 30.31.1 Subdivision. Landlord reserves
the right to further subdivide all or a portion of the Project. 
  
 30.31.2 The Other Improvements. If portions of the Project or property adjacent to the Project (collectively, the “Other Improvements”) are at any time owned by an entity 

  

 37 

 
other than Landlord, Landlord, at its option, may enter into an agreement with the owner or owners of any or all of the Other Improvements to provide (i) for
reciprocal rights of access and/or use of the Project and the Other Improvements, (ii) for the common management, operation, maintenance, improvement and/or repair of all or any portion of the Project and the Other Improvements, (iii) for the
allocation of a portion of the Direct Expenses to the Other Improvements and the operating expenses and taxes for the Other Improvements to the Project, and (iv) for the use or improvement of the Other Improvements and/or the Project in connection
with the improvement, construction, and/or excavation of the Other Improvements and/or the Project. At Landlord’s request, Tenant shall subordinate this Lease to any such agreement per Section 5.3. Nothing contained herein shall be deemed or
construed to limit or otherwise affect Landlord’s right to convey all or any portion of the Project or any other of Landlord’s rights described in this Lease. 
  
 30.31.3 Construction of Project and Other Improvements. Tenant acknowledges that
portions of the Project and/or the Other improvements may be under construction following Tenant’s occupancy of the Premises, and that such construction may result in levels of noise, dust, obstruction of access, etc. which are in excess of
that present in a fully constructed project. Tenant hereby waives any and all rent offsets or claims of constructive eviction which may arise in connection with such construction, including any offsets or claims of constructive eviction which may
arise in connection with the Building Renovations (as defined in Section 30.31.4 below), provided such construction by Landlord does not adversely impact Tenant’s use or occupancy of the Premises or the Project 
  
 30.31.4 Building Renovations. It is
specifically understood and agreed that Landlord has made no representation or warranty to Tenant and has no obligation and has made no promises to alter, remodel, improve, renovate, repair or decorate the Premises, Building, or any part thereof and
that no representations respecting the condition of the Premises or the Building have been made by Landlord to Tenant except as specifically set forth herein or in the Tenant Work Letter. However, Tenant hereby acknowledges that Landlord is
currently renovating or may during the Lease Term renovate, improve, alter, or modify (collectively, the “Renovations”) the Project, the Building and/or the Premises including without limitation the parking structure, common areas,
systems and equipment, roof, and structural portions of the same. Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant’s business arising from the
Renovations. 
  
 30.32 No Consequential Damages.
Notwithstanding any provision of this Lease to the contrary, except as specifically set forth in Article 16 of this lease, under no circumstances shall either party be liable to the other for any consequential damages. 
  

 38 

 IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be executed the day and date first
above written. 
  

	“Landlord”:
	 3COM CORPORATION,
 a California
corporation

		
	By:	 	    /s/    MARK SLAVEN
	 	

	 	 	 Its: Chief Financial Officer

		
	By:	 	    /s/    MARK MICHAEL
	 	

	 	 	 Its: SVP, General Counsel

	
	“Tenant”:
	 MAGMA DESIGN AUTOMATION, INC.,
 a Delaware corporation

		
	By:	 	    /s/    GREGORY C. WALKER
	 	

	 	 	 Its: Chief Financial Officer

		
	By:	 	    /s/    CAMELLIA NGO
	 	

	 	 	 Its: Director, Corporate Facilities

  

 39 

 EXHIBIT A 
  
 SITE PLAN 
  
 [GRAPHIC] 
  

 40 

 EXHIBIT B 
  
 TENANT WORK LETTER 
  
 A. Tenant Improvements. The term “Tenant Improvements” shall mean those improvements that Tenant shall construct in the Premises
pursuant to Paragraph B below. 
  
 B. Procedure and Time
Schedules. 
  
 1. Tenant Improvements.
Tenant intends to construct the following improvements on the Premises: 
  

	 	•	 	Customize two (2) large training rooms; 

  

	 	•	 	Provide a total of sixty (60) private offices, including 5-8 executive offices, and 4-6 conference rooms; 

  

	 	•	 	Modify the existing lab/IT area on the first floor to approximately 4,000 square feet in a single room; and 

  

	 	•	 	Modify and/or demolish the lab spaces on floors 2, 3 and 4 of the Building. 

  

2. Approval of Plans. Tenant shall prepare and submit to Landlord for Landlord’s approval, which approval shall not be
unreasonably withheld, preliminary plans and specifications for the Tenant Improvements which Tenant desires to have installed on the Premises. As soon as the final plans, specifications and working drawings are completed, Tenant shall deliver the
same to Landlord for its approval, which shall not be unreasonably withheld, and which shall be based solely upon whether such final plans are consistent with the preliminary plans and the terms of this Lease. In all events, the parties shall use
their best efforts to reach agreement so that such plans may be submitted for governmental approval within seven (7) business days from submission of such plans to Landlord for its approval. If Landlord and Tenant agree on such plans, they shall
indicate their approval thereof by initialing and dating the same. Tenant shall submit such final plans, specifications and working drawings to all appropriate governmental agencies for approval. Tenant shall notify Landlord of any changes required
by any governmental agencies, and Landlord shall have five (5) business days thereafter to indicate its approval thereof. The final plans, specifications and working drawings as approved, and all change orders specifically permitted pursuant to
Paragraph C below, shall be referred to herein as the “Approved Plans.” 
  
 C. Commencement and Completion of the Tenant Improvements. As soon as (1) the Approved Plans have been developed as provided above, and (2) all necessary governmental approvals have been obtained, then Tenant
shall thereafter commence construction of such improvements and shall diligently prosecute such construction to completion. The Tenant Improvements shall be constructed by Tenant substantially in accordance with the Approved Plans, in a good and
workmanlike manner, and in compliance with all applicable regulations, ordinances, building codes, and statutes of lawful governmental authority, including but not limited to the Americans with Disabilities Act. 
  
 D. Payment for Costs. Tenant shall pay all costs (“Tenant
Improvement Costs”) associated with construction of the Tenant Improvements and Landlord shall have no responsibility or liability for such construction costs. 
  

 41 

 E. Compliance with Article 8 and Article 9 of the Lease. Tenant shall comply with the provisions
of Article 8 and Article 9 of the Lease with respect to the construction of the Tenant Improvements. 
  

 42 

 EXHIBIT C 
  
 RULES AND REGULATIONS 
  

	1.	No sign, placard, picture, advertisement, name or notice shall be installed or displayed on any part of the outside or inside of the Building without the prior written consent of
Landlord. Landlord shall have the right to remove, at Tenant’s expense and without notice, any sign installed or displayed in violation of this rule. 

  

	2.	Except as consented to in writing by Landlord or in accordance with Building standard improvements, no draperies, curtains, blinds, shades, screens or other devices shall be hung at
or used in connection with any window or exterior door or doors of the Premises. No awning shall be permitted on any part of the Premises. Tenant shall not place anything against or near glass partitions or doors or windows which may appear
unsightly from outside the Premises. 

  

	3.	Tenant shall not obstruct any sidewalks, halls, lobbies, passages, exits, entrances, elevators or stairways of the Building. No tenant and no employee or invitee of any tenant shall
go upon the roof of the Building or make any roof or terrace penetrations. Tenant shall not allow anything to be placed on the outside terraces or balconies without the prior written consent of Landlord. 

  

	4.	Tenant shall deliver to Landlord, upon the termination of its tenancy, all keys and all electronic card keys to all locks for doors on the Premises. 

  

	5.	If Tenant requires telegraphic, telephonic, burglar alarm or similar services, it shall first obtain, and comply with, Landlord’s instructions for their installation.

  

	6.	Tenant shall not place a load upon any floor of the Premises which exceeds the maximum load per square foot which the floor was designed to carry and which is allowed by law.
Tenant’s business machines and mechanical equipment which cause noise or vibration which may be transmitted to the structure of the Building or to any space therein, and which is objectionable to Landlord or to any tenants in the Building,
shall be placed and maintained by Tenant, at Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate noise or vibration. 

  

	7.	Tenant shall not use or permit to be used in the Premises any foul or noxious gas or substance, or permit or allow the Premises to be occupied or used in a manner offensive or
objectionable to Landlord or other occupants of the Building by reason of noise, odors or vibrations. No animal, except seeing eye dogs when in the company of their masters, may be brought into or kept in the Building. 

  

	8.	Tenant shall cooperate fully with Landlord to assure the most effective operation of the Building’s heating and air-conditioning and to comply with any governmental
energy-saving rules, laws or regulations of which Tenant has actual notice. 

  

	9.	Landlord reserves the right, exercisable without notice and without liability to Tenant, to change the name and street address of the Building. 

  

	10.	Landlord reserves the right to prevent access to the Building by closing the doors or by other appropriate action in case of invasion, mob, riot, public excitement or other
commotion. 

  

	11.	 Tenant shall close and lock the doors of its Premises, shut off all water faucets or other water apparatus and turn off all lights and other equipment which is not
required to be continuously run. 

  

 43 

 
Tenant shall be responsible for any damage or injuries sustained by other tenants or occupants of the Building or Landlord for noncompliance with this Rule.

  

	12.	The toilet rooms, toilets, 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 placed therein. The expense of any breakage, stoppage or damage resulting from any violation of this rule shall be borne by the tenant who, or whose employees or invitees, shall have caused it. 

  

	13.	Except as otherwise provided in the Lease, Tenant shall not install any radio or television antenna, loudspeaker or other device on the roof or exterior walls of the Building.
Tenant shall not interfere with radio or television broadcasting or reception from or in the Building or elsewhere. 

  

	14.	Tenant shall not cut or bore holes for wires in the partitions, woodwork or plaster of the Premises. Tenant shall not affix any floor covering to the floor of the Premises in any
manner except as approved by Landlord. Tenant shall repair, or be responsible for the cost of repair of any damage resulting from noncompliance with this Rule. 

  

	15.	Canvassing, soliciting and distributing handbills or any other written material and peddling in the Building are prohibited, and each tenant shall cooperate to prevent these
activities. 

  

	16.	Tenant shall store all its trash and garbage within its Premises or in enclosed and/or screened outside areas as approved by Landlord, which approval shall not be unreasonably
withheld. 

  

	17.	Use by Tenant of approved equipment for brewing coffee, tea, hot chocolate and similar beverages and microwaving food shall be permitted, provided that the equipment and use is in
accordance with all applicable federal, state, county and city laws, codes, ordinances, rules and regulations. 

  

	18.	Tenant shall not use the name of the Building in connection with or in promoting or advertising the business of Tenant, except as Tenant’s address, without the written consent
of Landlord. 

  

	19.	Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governmental agency. Tenant shall be responsible for
any increased insurance premiums attributable to Tenant’s use of the Premises, Building or Project. 

  

	20.	Tenant assumes any and all responsibility for protecting its Premises from theft and robbery, which responsibility includes keeping doors locked and other means of entry to the
Premises closed. 

  

	21.	Tenant shall not use the Premises, or suffer or permit anything to be done on, in or about the Premises, which may result in an increase to Landlord in the cost of insurance
maintained by Landlord on the Building and Common Areas. 

  

	22.	Tenant’s requests for assistance will be attended to only upon appropriate application to the office of the Building by an authorized individual. Employees of Landlord shall
not perform any work or do anything outside of their regular duties unless under special instructions from Landlord, and no employee of Landlord will admit any person (Tenant or otherwise) to any office without specific instructions from Landlord.

  

 44 

	23.	Landlord may waive any one or more of these Rules and Regulations for the benefit of Tenant or any other tenant, but no waiver by Landlord shall be construed as a waiver of the
Rules and Regulations in favor of Tenant or any other tenant, nor prevent Landlord from thereafter enforcing the Rules and Regulations against any or all of the tenants of the Building. 

  

	24.	These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any
lease of premises in the Building. 

  

	25.	Landlord reserves the right to make other reasonable Rules and Regulations as, in its judgment, may from time to time be needed for safety and security, for care and cleanliness of
the Building and for the preservation of good order therein. Tenant agrees to abide by all Rules and Regulations hereinabove stated and any additional rules and regulations which are adopted. 

  

	26.	Tenant shall be responsible for the observance of all of the foregoing rules by Tenant’s employees, agents, clients, customers, invitees and guests. 

 

 45 

 EXHIBIT E  
  
 DETERMINATION OF FAIR MARKET VALUE 
  
 The term “Fair Market Value” of Base Rent for the Extended Term, as used in Section 2.2, above,
shall be determined as follows: Within forty five (45) days after receiving Tenant’s notice exercising its Option to Extend, Landlord shall notify Tenant of its determination of the Fair Market Value Base Rent. Tenant shall have thirty (30)
days from the date of such notice (the “Response Period”) to notify Landlord whether it disagrees with such determination. If Tenant fails to so timely notify Landlord during the Response Period, the Fair Market Value Base Rent
shall be as provided in Landlord’s notice. If Tenant gives Landlord timely notice of its disagreement, Landlord and Tenant shall negotiate in good faith to agree on Fair Market Value for an additional fifteen (15) day period. If the parties
have not resolved Fair Market Value within such time, promptly thereafter each shall specify in writing to each other the name and address of a person to act as the appraiser or broker on its behalf. Each such person shall be an MAI certified
commercial real estate broker or appraiser with at least five (5) years of experience with commercial and industrial properties in the Silicon Valley area. If either party fails to timely appoint an appraiser or broker, the determination of the
timely appointed appraiser or broker shall be final and binding. 
  
 The two appraiser/brokers shall have thirty (30) days from the day of their respective appointments (the “Determination Period”) to make their respective determinations and agree on Fair Market Value. If the two
appraiser/brokers selected by the Landlord and Tenant cannot reach agreement on Fair Market Value within such time, the two appraisers shall within ten (10) days after expiration of the Determination Period jointly appoint an impartial third
appraiser/broker with qualifications similar to those of the first two appraiser/brokers, and Fair Market Value shall be established by the three appraiser/brokers in accordance with the following procedures: The appraiser/broker selected by each
party shall state in writing his other determination of Fair Market Value. The first two appraiser/brokers shall arrange for the simultaneous delivery of their determinations to the third appraiser/broker no later than ten (10) days after the
appointment of such third appraiser/broker The role of the third appraiser shall be to select which of the two proposed determinations most closely approximates the third appraiser’s determination of Fair Market Value, and shall have no more
than twenty (20) days in which to select the final determination. The third appraiser shall have no right to propose a middle ground or any modification of the two proposed determinations. The determination chosen by the third appraiser shall
constitute the decision of the appraisers and be final and binding on the parties. Each party shall pay the cost of its own appraiser and shall share equally the cost of the third appraiser. 
  
 In the event the appraisers have not determined Fair Market Value as of the
date the Option Period is to begin, Tenant shall on an interim basis pay Landlord monthly rent based upon Landlord’s determination of Fair Market Value as stated in Landlord’s notice to Tenant. If the appraisers’ final determination
is less than Landlord’s determination, Tenant shall be entitled to a credit against the next rental payment due from Tenant hereunder in the amount of the difference. Alternatively, if the appraisers’ final determination is more than
Landlord’s determination, Tenant shall pay such difference with the next rental payment due. 
  
 Nothing contained herein shall prevent Landlord and Tenant from jointly selecting a single appraiser/broker to determine Fair Market Value if both
Landlord and Tenant agree in writing to do so within the Response Period, in which event the determination of the appraiser/broker shall be conclusively deemed the Fair Market Value Base Rent. In such event, Landlord and Tenant shall share equally
the fees and expenses of said joint appraiser/broker. 
  

 46

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]