Document:

Columbia Sportswear Company 1997 Stock Incentive Plan

 Exhibit 10.1 
 COLUMBIA SPORTSWEAR COMPANY 
 1997 STOCK INCENTIVE PLAN, AS AMENDED 
 1. Purpose. The purpose of this 1997 Stock Incentive Plan (the “Plan”) is to enable Columbia Sportswear Company (the
“Company”) to attract and retain the services of (i) selected employees, officers and directors of the Company or any parent or subsidiary of the Company and (ii) selected nonemployee agents, consultants, advisors and independent
contractors of the Company or any parent or subsidiary of the Company. For purposes of this Plan, a person is considered to be employed by or in the service of the Company if the person is employed by or in the service of the Company or any parent
or subsidiary of the Company (in which case, the Company, parent or subsidiary is referred to as an “Employer”). 
 2. Shares
Subject to the Plan. Subject to adjustment as provided below and in Section 10, the shares to be offered under the Plan shall consist of Common Stock of the Company, and the total number of shares of Common Stock that may be issued under
the Plan shall be 8,900,000 shares. If an option or Performance-based Award granted under the Plan expires, terminates or is cancelled, the unissued shares subject to that option or Performance-based Award shall again be available under the Plan. If
shares awarded as a stock bonus or restricted stock unit pursuant to Section 7 or sold pursuant to Section 8 under the Plan are forfeited to or repurchased by the Company, the number of shares forfeited or repurchased shall again be
available under the Plan. 
 3. Effective Date and Duration of Plan. 
 3.1 Effective Date. The Plan shall become effective as of March 12, 1997. No Incentive Stock Option (as defined in Section 5 below)
granted under the Plan shall become exercisable and no payments shall be made under a Performance-based Award, however, until the Plan is approved by the affirmative vote of the holders of a majority of the shares of Common Stock represented at a
shareholders meeting at which a quorum is present and the exercise of any Incentive Stock Options granted under the Plan before such approval shall be conditioned on and subject to such approval. Subject to this limitation, options and
Performance-based Awards may be granted and shares may be awarded as bonuses or sold under the Plan at any time after the effective date and before termination of the Plan. 
 3.2 Duration. The Plan shall continue in effect until all shares available for issuance under the Plan have been issued and all restrictions on
such shares have lapsed. The Board of Directors may suspend or terminate the Plan at any time except with respect to options, Performance-based Awards and shares subject to restrictions then outstanding under the Plan. Termination shall not affect
any outstanding options, any outstanding Performance-based Awards or any right of the Company to repurchase shares or the forfeitability of shares issued under the Plan. 

 4. Administration. 
 4.1 Board of Directors. The Plan shall be administered by the Board of Directors of the Company, which shall determine and designate from time to time the individuals to whom awards shall be made, the amount of
the awards and the other terms and conditions of the awards. Subject to the provisions of the Plan, the Board of Directors may from time to time adopt and amend rules and regulations relating to administration of the Plan, advance the lapse of any
waiting period, accelerate any exercise date, waive or modify any restriction applicable to shares (except those restrictions imposed by law) and make all other determinations in the judgment of the Board of Directors necessary or desirable for the
administration of the Plan. The interpretation and construction of the provisions of the Plan and related agreements by the Board of Directors shall be final and conclusive. The Board of Directors may correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any related agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect, and it shall be the sole and final judge of such expediency. 
 4.2 Committee. The Board of Directors may delegate to any committee of the Board of Directors (the “Committee”) any or all authority for
administration of the Plan. If authority is delegated to the Committee, all references to the Board of Directors in the Plan shall mean and relate to the Committee, except (i) as otherwise provided by the Board of Directors and (ii) that
only the Board of Directors may amend or terminate the Plan as provided in Sections 3 and 11. 
 4.3 Officers. The Board of Directors
may delegate to any officer or officers of the Company authority to grant awards under the Plan, subject to any restrictions imposed by the Board of Directors. 
 4.4 Non-U.S. Provisions. Notwithstanding anything in the Plan to the contrary, with respect to any person eligible for awards under the Plan who is resident outside the United States, the Board of Directors
may, in its sole discretion, amend or vary the terms of the Plan in order to conform such terms with the requirements of local law or to meet the goals and objectives of the Plan, and may, in its sole discretion, establish administrative rules and
procedures to facilitate the operation of the Plan in such non-U.S. jurisdictions. The Board may, where it deems appropriate in its sole discretion, establish one or more sub-plans for these purposes. 
 5. Types of Awards; Eligibility. The Board of Directors may, from time to time, take the following actions, separately or in combination, under
the Plan: (i) grant Incentive Stock Options, as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), as provided in Sections 6.1 and 6.2; (ii) grant options other than Incentive Stock Options
(“Non-Statutory Stock Options”) as provided in Sections 6.1 and 6.3; (iii) award stock bonuses or restricted stock units as provided in Section 7; (iv) sell shares subject to restrictions as provided in Section 8; and
(v) award Performance-based Awards as provided in Section 9. Awards may be made to employees, including employees who are officers or directors, and to other individuals described in 

 
Section 1 who the Board of Directors believes have made or will make an important contribution to the Company; provided, however, that only employees of
the Company or any parent or subsidiary of the Company (as defined in subsections 424(e) and 424(f) of the Code) shall be eligible to receive Incentive Stock Options under the Plan. The Board of Directors shall select the individuals to whom awards
shall be made and shall specify the action taken with respect to each individual to whom an award is made. At the discretion of the Board of Directors, an individual may be given an election to surrender an award in exchange for the grant of a new
award. No employee may be granted options for more than an aggregate of 100,000 shares of Common Stock in connection with the hiring of the employee or 100,000 shares of Common Stock in any calendar year otherwise. 
 6. Option Grants. 
 6.1 General
Rules Relating to Options. 
 6.1-1 Terms of Grant. The Board of Directors may grant options under the Plan. With respect to each
option grant, the Board of Directors shall determine the number of shares subject to the option, the option exercise price, the period of the option, the time or times at which the option may be exercised and whether the option is an Incentive Stock
Option or a Non-Statutory Stock Option. At the time of the grant of an option or at any time thereafter, the Board of Directors may provide that an optionee who exercised an option with Common Stock of the Company shall automatically receive a new
option to purchase additional shares equal to the number of shares surrendered and may specify the terms and conditions of such new options. 
 6.1-2 Exercise of Options. Except as provided in Section 6.1-4 or as determined by the Board of Directors, no option granted under the Plan may be exercised unless at the time of such exercise the optionee is employed by or in
the service of the Company and shall have been so employed or provided such service continuously since the date the option was granted. Except as provided in Sections 6.1-4 and 10, options granted under the Plan may be exercised from time to time
over the period stated in each option in such amounts and at such times as shall be prescribed by the Board of Directors, provided that options shall not be exercised for fractional shares. Unless otherwise determined by the Board of Directors, if
an optionee does not exercise an option in any one year with respect to the full number of shares to which the optionee is entitled in that year, the optionee’s rights shall be cumulative and the optionee may purchase those shares in any
subsequent year during the term of the option. 
 6.1-3 Nontransferability. Each Incentive Stock Option and, unless otherwise
determined by the Board of Directors, each other option granted under the Plan by its terms (i) shall be nonassignable and nontransferable by the optionee, either voluntarily or by operation of law, except by will or by the laws of descent and
distribution of the state or country of the optionee’s domicile at the time of death, and (ii) during the optionee’s lifetime, shall be exercisable only by the optionee. 

 6.1-4 Termination of Employment or Service. 
 6.1-4(a) General Rule. Unless otherwise determined by the Board of Directors or unless otherwise required under applicable law, in the event an
optionee’s employment or service with the Company terminates for any reason other than because of total disability or death as provided in Sections 6.1-4(b) and (c), his or her option may be exercised at any time before the expiration date of
the option or the expiration of the post-termination exercise period after the date of termination, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of termination. The
post-termination exercise period for a grant is set forth in an option agreement. 
 6.1-4(b) Termination Because of Total
Disability. Unless otherwise determined by the Board of Directors, in the event an optionee’s employment or service with the Company terminates because of total disability, his or her option may be exercised at any time before the
expiration date of the option or before the date 12 months after the date of termination, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of termination. The term
“total disability” shall be defined under the Company’s long-term disability policy. 
 6.1-4(c) Termination Because of
Death. Unless otherwise determined by the Board of Directors, in the event of an optionee’s death while employed by or providing service to the Company, his or her option may be exercised at any time before the expiration date of the option
or before the date 12 months after the date of death, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the option at the date of death and only by the person or persons to whom the optionee’s
rights under the option shall pass by the optionee’s will or by the laws of descent and distribution of the state or country of domicile at the time of death. 
 6.1-4(d) Amendment of Exercise Period Applicable to Termination. The Board of Directors may at any time extend the applicable post-termination exercise periods any length of time not longer than the original
expiration date of the option. The Board of Directors may at any time increase the portion of an option that is exercisable, subject to such terms and conditions as the Board of Directors may determine. 
 6.1-4(e) Failure to Exercise Option. To the extent that the option of any deceased optionee or any optionee whose employment or service
terminates is not exercised within the applicable period, all further rights to purchase shares pursuant to the option shall cease and terminate. 
 6.1-4(f) Leave of Absence. Absence on leave approved by the Employer or on account of illness or disability shall not be deemed a termination or interruption of employment or service. Unless otherwise determined by the Board of
Directors, vesting of options shall continue during a medical, family or military leave of absence, whether paid or unpaid, and vesting of options shall be suspended during any other unpaid leave of absence greater than 30 days. 

 6.1-5 Purchase of Shares. 
 6.1-5(a) Notice of Exercise. Unless the Board of Directors determines otherwise, shares may be acquired pursuant to an option granted under the
Plan only upon the Company’s receipt of written notice from the optionee of the optionee’s binding commitment to purchase shares, specifying the number of shares the optionee desires to purchase under the option and the date on which the
optionee agrees to complete the transaction, and, if required in order to comply with the Securities Act of 1933, as amended, containing a representation that it is the optionee’s present intention to acquire the shares for investment and not
with a view to distribution. 
 6.1-5(b) Payment. Unless the Board of Directors determines otherwise, on or before the date specified
for completion of the purchase of shares pursuant to an option exercise, the optionee must have paid the Company the full purchase price of those shares in cash or by check or, with the consent of the Board of Directors, in whole or in part, in
Common Stock of the Company valued at fair market value, restricted stock, or other contingent awards denominated in either stock or cash, promissory notes and other forms of consideration. Unless otherwise determined by the Board of Directors, any
Common Stock provided in payment of the purchase price must have been previously acquired and held by the optionee for at least six months. The fair market value of Common Stock provided in payment of the purchase price shall be the closing price of
the Common Stock last reported before the time payment in Common Stock is made or, if earlier, committed to be made, if the Common Stock is publicly traded, or another value of the Common Stock as shall be specified by the Board of Directors. No
shares shall be issued until full payment for the shares has been made, including all amounts owed for tax withholding. With the consent of the Board of Directors, an optionee may request the Company to apply automatically the shares to be received
upon the exercise of a portion of a stock option (even though stock certificates have not yet been issued) to satisfy the purchase price for additional portions of the option. 
 6.1-5(c) Tax Withholding. Each optionee who has exercised an option shall, immediately upon notification of the amount due, if any, pay to the
Company in cash or by check amounts necessary to satisfy any applicable federal, state, local and non-U.S. tax withholding requirements. If additional withholding is or becomes required (as a result of exercise of an option or as a result of
disposition of shares acquired pursuant to exercise of an option) beyond any amount deposited before delivery of the certificates, the optionee shall pay such amount, in cash or by check, to the Company on demand. If the optionee fails to pay the
amount demanded, the Company or the Employer may withhold that amount from other amounts payable to the optionee, including salary, subject to applicable law. The Company shall have the right, but not the obligation, to deduct from any and all
payments made under the Plan, or to require the optionee, to satisfy this obligation, in whole or in part, by instructing the Company to 

 
withhold from the shares to be issued upon exercise or by delivering to the Company other shares of Common Stock; provided, however, that the number of
shares so withheld or delivered shall not exceed the minimum amount necessary to satisfy the required withholding obligation. The Company shall have no obligation to deliver shares of stock until the Company’s tax withholding obligations have
been satisfied by the optionee. 
 6.1-5(d) Reduction of Reserved Shares. Upon the exercise of an option, the number of shares
reserved for issuance under the Plan shall be reduced by the number of shares issued upon exercise of the option (less the number of any shares surrendered in payment for the exercise price or withheld to satisfy withholding requirements).

 6.1-6 Limitations on Grants to Non-Exempt Employees. Unless otherwise determined by the Board of Directors, if an employee of the
Company or any parent or subsidiary of the Company is a non-exempt employee subject to the overtime compensation provisions of Section 7 of the Fair Labor Standards Act (the “FLSA”), any option granted to that employee shall be
subject to the following restrictions: (i) the option price shall be at least 85 percent of the fair market value, as described in Section 6.2-4, of the Common Stock subject to the option on the date it is granted; and (ii) the option
shall not be exercisable until at least six months after the date it is granted; provided, however, that this six-month restriction on exercisability will cease to apply if the employee dies, becomes disabled or retires, there is a change in
ownership of the Company, or in other circumstances permitted by regulation, all as prescribed in Section 7(e)(8)(B) of the FLSA. 
 6.2
Incentive Stock Options. Incentive Stock Options shall be subject to the following additional terms and conditions: 
 6.2-1
Limitation on Amount of Grants. If the aggregate fair market value of stock (determined as of the date the option with respect to such stock is granted) with respect to which Incentive Stock Options granted under this Plan (and any other
stock incentive plan of the Company or its parent or subsidiary corporations) are exercisable for the first time by an employee during any calendar year exceeds $100,000, the portion of the option or options not exceeding $100,000 will be treated as
an Incentive Stock Option and the portion of the option exceeding $100,000 will be treated as a Non-Statutory Stock Option. The preceding sentence will be applied by taking options into account in the order in which they were granted. The Company
may designate stock that is treated as acquired pursuant to exercise of an option that is in part an Incentive Stock Option and in part a Non-Statutory Stock Option as Incentive Stock Option stock by issuing a separate certificate for that stock and
identifying the certificate as Incentive Stock Option stock in its stock records. In the absence of such a designation, each share of stock issued pursuant to exercise of the option will be treated in part as Incentive Stock Option stock and in part
as Non-Statutory Stock Option stock. 
 6.2-2 Limitations on Grants to 10 Percent Shareholders. An Incentive Stock Option may be
granted under the Plan to an employee possessing more than 10 

 
percent of the total combined voting power of all classes of stock of the Company or any parent or subsidiary (as defined in subsections 424(e) and 424(f) of
the Code) only if the option price is at least 110 percent of the fair market value, as described in Section 6.2-4, of the Common Stock subject to the option on the date it is granted and the option by its terms is not exercisable after the
expiration of five years from the date it is granted. 
 6.2-3 Duration of Options. Subject to Sections 6.1-2, 6.1-4 and 6.2-2,
Incentive Stock Options granted under the Plan shall continue in effect for the period fixed by the Board of Directors, except that no Incentive Stock Option shall be exercisable after the expiration of 10 years from the date it is granted.

 6.2-4 Option Price. The option price per share shall be determined by the Board of Directors at the time of grant. Except as
provided in Section 6.2-2, the option price shall not be less than 100 percent of the fair market value of the Common Stock covered by the Incentive Stock Option at the date the option is granted. The fair market value shall be the closing
price of the Common Stock last reported before the time the option is granted, if the stock is publicly traded, or, another value of the Common Stock as shall be specified by the Board of Directors. 
 6.2-5 Limitation on Time of Grant. No Incentive Stock Option shall be granted on or after the tenth anniversary of the last action by the Board
of Directors adopting the Plan or approving an increase in the number of shares available for issuance under the Plan, which action was subsequently approved within 12 months by the shareholders. 
 6.2-6 Early Dispositions. If within two years after an Incentive Stock Option is granted or within 12 months after an Incentive Stock Option is
exercised, the optionee sells or otherwise disposes of Common Stock acquired on exercise of the Option, the optionee shall within 30 days of the sale or disposition notify the Company in writing of (i) the date of the sale or disposition,
(ii) the amount realized on the sale or disposition and (iii) the nature of the disposition (e.g., sale, gift, etc.). 
 6.3
Non-Statutory Stock Options. Non-Statutory Stock Options shall be subject to the following terms and conditions, in addition to those set forth in Section 6.1 above: 
 6.3-1 Option Price. The option price for Non-Statutory Stock Options shall be determined by the Board of Directors at the time of grant and may
be any amount determined by the Board of Directors. 
 6.3-2 Duration of Options. Non-Statutory Stock Options granted under the Plan
shall continue in effect for the period fixed by the Board of Directors. 
 7. Stock Bonuses and Restricted Stock Units. The Board of
Directors may award shares under the Plan as stock bonuses or restricted stock units. Shares awarded as a stock bonus or restricted stock units shall be subject to the terms, conditions and 

 
restrictions determined by the Board of Directors. The restrictions may include restrictions concerning transferability and forfeiture of the shares awarded,
together with such other restrictions as may be determined by the Board of Directors. The Board of Directors may require the recipient to sign an agreement as a condition of the award, but may not require the recipient to pay any monetary
consideration other than amounts necessary to satisfy tax withholding requirements. The agreement may contain any terms, conditions, restrictions, representations and warranties required by the Board of Directors. The certificates representing the
shares awarded shall bear any legends required by the Board of Directors. The Company may require any recipient of an award to pay to the Company in cash or by check upon demand amounts necessary to satisfy any applicable federal, state or local tax
withholding requirements. If the recipient fails to pay the amount demanded, the Company or the Employer may withhold that amount from other amounts payable to the recipient, including salary, subject to applicable law. The Company shall have the
right, but not the obligation, to deduct from any and all payments made under the Plan, or to require the recipient, to satisfy this obligation, in whole or in part, by instructing the Company to withhold from the shares to be issued or by
delivering to the Company other shares of Common Stock; provided, however, that the number of shares so withheld or delivered shall not exceed the minimum amount necessary to satisfy the required withholding obligation. The Company shall have no
obligation to deliver shares of stock until the Company’s tax withholding obligations have been satisfied by the recipient. Upon the issuance of a stock bonus or restricted stock unit, the number of shares reserved for issuance under the Plan
shall be reduced by the number of shares issued, less the number of shares withheld or delivered to satisfy withholding obligations. 
 8.
Restricted Stock. The Board of Directors may issue shares under the Plan for such consideration (including promissory notes and services) as determined by the Board of Directors. Shares issued under the Plan shall be subject to the terms,
conditions and restrictions determined by the Board of Directors. The restrictions may include restrictions concerning transferability, repurchase by the Company and forfeiture of the shares issued, together with such other restrictions as may be
determined by the Board of Directors. All Common Stock issued pursuant to this Section 8 shall be subject to a purchase agreement, which shall be executed by the Company and the prospective purchaser of the shares before the delivery of
certificates representing such shares to the purchaser. The purchase agreement may contain any terms, conditions, restrictions, representations and warranties required by the Board of Directors. The certificates representing the shares shall bear
any legends required by the Board of Directors. The Company may require any purchaser of restricted stock to pay to the Company in cash or by check upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding
requirements. If the purchaser fails to pay the amount demanded, the Company or the Employer may withhold that amount from other amounts payable to the purchaser, including salary, subject to applicable law. With the consent of the Board of
Directors, a purchaser may satisfy this obligation, in whole or in part, by instructing the Company to withhold from any shares to be issued or by delivering to the Company other shares of Common Stock; provided, however, that the number of shares
so withheld or delivered shall not exceed the minimum amount necessary to satisfy the required 

 
withholding obligation. Upon the issuance of restricted stock, the number of shares reserved for issuance under the Plan shall be reduced by the number of
shares issued, less the number of shares withheld or delivered to satisfy withholding obligations. 
 9. Performance-based Awards. The
Board of Directors may grant awards intended to qualify as qualified performance-based compensation under Section 162(m) of the Code and the regulations thereunder (“Performance-based Awards”). Performance-based Awards shall be
denominated at the time of grant either in Common Stock (“Stock Performance Awards”) or in dollar amounts (“Dollar Performance Awards”). Payment under a Stock Performance Award or a Dollar Performance Award shall be made, at the
discretion of the Board of Directors, in Common Stock (“Performance Shares”), or in cash or in any combination thereof. Performance-based Awards shall be subject to the following terms and conditions: 
 9.1 Award Period. The Board of Directors shall determine the period of time for which a Performance-based Award is made (the “Award
Period”). 
 9.2 Performance Goals and Payment. The Board of Directors shall establish in writing objectives (“Performance
Goals”) that must be met by the Company or any subsidiary, division or other unit of the Company (“Business Unit”) during the Award Period as a condition to payment being made under the Performance-based Award. The Performance Goals
for each award shall be one or more targeted levels of performance with respect to one or more of the following objective measures with respect to the Company or any Business Unit: earnings, earnings per share, stock price increase, total
shareholder return (stock price increase plus dividends), return on equity, return on assets, return on capital, economic value added, revenues, operating income, inventories, inventory turns, cash flows or any of the foregoing before the effect of
acquisitions, divestitures, accounting changes, and restructuring and special charges (determined according to criteria established by the Board of Directors). The Board of Directors shall also establish the number of Performance Shares or the
amount of cash payment to be made under a Performance-based Award if the Performance Goals are met or exceeded, including the fixing of a maximum payment (subject to Section 9.4). The Board of Directors may establish other restrictions to
payment under a Performance-based Award, such as a continued employment requirement, in addition to satisfaction of the Performance Goals. Some or all of the Performance Shares may be issued at the time of the award as restricted shares subject to
forfeiture in whole or in part if Performance Goals or, if applicable, other restrictions are not satisfied. 
 9.3 Maximum Awards. No
participant may receive in any fiscal year Stock Performance Awards under which the aggregate amount payable under the Awards exceeds the equivalent of 100,000 shares of Common Stock or Dollar Performance Awards under which the aggregate amount
payable under the Awards exceeds $3,000,000. 
 9.4 Tax Withholding. Each participant who has received Performance Shares shall, upon
notification of the amount due, pay to the Company in cash or by 

 
check amounts necessary to satisfy any applicable federal, state and local tax withholding requirements. If the participant fails to pay the amount demanded,
the Company or the Employer may withhold that amount from other amounts payable to the participant, including salary, subject to applicable law. With the consent of the Board of Directors, a participant may satisfy this obligation, in whole or in
part, by instructing the Company to withhold from any shares to be issued or by delivering to the Company other shares of Common Stock; provided, however, that the number of shares so delivered or withheld shall not exceed the minimum amount
necessary to satisfy the required withholding obligation. 
 9.5 Effect on Shares Available. The payment of a Performance-based Award
in cash shall not reduce the number of shares of Common Stock reserved for issuance under the Plan. The number of shares of Common Stock reserved for issuance under the Plan shall be reduced by the number of shares issued upon payment of an award,
less the number of shares delivered or withheld to satisfy withholding obligations. 
 10. Changes in Capital Structure. 

10.1 Stock Splits; Stock Dividends. If the outstanding Common Stock of the Company is hereafter increased or decreased or changed into or
exchanged for a different number or kind of shares or other securities of the Company by reason of any stock split, combination of shares, dividend payable in shares, recapitalization or reclassification, appropriate adjustment shall be made by the
Board of Directors in the number and kind of shares available for grants under the Plan and in all other share amounts set forth in the Plan. In addition, the Board of Directors shall make appropriate adjustment in the number and kind of shares as
to which outstanding options, or portions thereof then unexercised, shall be exercisable, so that the optionee’s proportionate interest before and after the occurrence of the event is maintained. Notwithstanding the foregoing, the Board of
Directors shall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any fractional shares resulting from any adjustment may be disregarded or provided for in any manner determined by the
Board of Directors. Any such adjustments made by the Board of Directors shall be conclusive. 
 10.2 Mergers, Reorganizations, Etc. In
the event of a merger, consolidation, plan of exchange, acquisition of property or stock, split-up, split-off, spin-off, reorganization or liquidation to which the Company is a party or any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all, or substantially all, of the Company’s assets (each, a “Transaction”), the Board of Directors shall, in its sole discretion and to the extent possible under the structure of the
Transaction, select one of the following alternatives for treating outstanding options under the Plan: 
 10.2-1 Outstanding options shall
remain in effect in accordance with their terms. 

 10.2-2 Outstanding options shall be converted into options to purchase stock in one or more of the
corporations, including the Company, that are the surviving or acquiring corporations in the Transaction. The amount, type of securities subject thereto and exercise price of the converted options shall be determined by the Board of Directors of the
Company, taking into account the relative values of the companies involved in the Transaction and the exchange rate, if any, used in determining shares of the surviving corporation(s) to be held by holders of shares of the Company following the
Transaction. Unless otherwise determined by the Board of Directors, the converted options shall be vested only to the extent that the vesting requirements relating to options granted hereunder have been satisfied. 
 10.2-3 The Board of Directors shall provide a period of 30 days or less before the consummation of the Transaction during which outstanding options may
be exercised to the extent then exercisable, and upon the expiration of that period, all unexercised options shall immediately terminate. The Board of Directors may, in its sole discretion, accelerate the exercisability of options so that they are
exercisable in full during that period. 
 10.3 Dissolution of the Company. In the event of the dissolution of the Company, options
shall be treated in accordance with Section 10.2-3. 
 10.4 Rights Issued by Another Corporation. The Board of Directors may also
grant options and stock bonuses and Performance-based Awards and issue restricted stock under the Plan having terms, conditions and provisions that vary from those specified in this Plan, provided that any such awards are granted in substitution
for, or in connection with the assumption of, existing options, stock bonuses, Performance-based Awards and restricted stock granted, awarded or issued by another corporation and assumed or otherwise agreed to be provided for by the Company pursuant
to or by reason of a Transaction. 
 11. Amendment of the Plan. The Board of Directors may at any time, modify or amend the Plan in
such respects as it shall deem advisable because of changes in the law while the Plan is in effect or for any other reason. Except as provided in Section 10, however, no change in an award already granted shall be made without the written
consent of the holder of the award if the change would adversely affect the holder. 
 12. Approvals. The Company’s obligations
under the Plan are subject to the approval of federal, state and non-U.S. authorities or agencies with jurisdiction in the matter. The Company will use its best efforts to comply with applicable law and regulations, including rules and regulations
of the Securities and Exchange Commission and any stock exchange on which the Company’s shares may then be listed, in connection with the grants under the Plan. The foregoing notwithstanding, the Company shall not be obligated to issue or
deliver Common Stock under the Plan if such issuance or delivery would violate applicable federal, state or non-U.S. securities laws. 

 13. Employment and Service Rights. Nothing in the Plan or any award pursuant to the Plan shall
(i) confer upon any employee any right to be continued in the employment of an Employer or interfere in any way with the Employer’s right to terminate such employee’s employment at will at any time, for any reason, with or without
cause, or to decrease such employee’s compensation or benefits, or (ii) confer upon any person engaged by an Employer any right to be retained or employed by the Employer or to the continuation, extension, renewal or modification of any
compensation, contract or arrangement with or by the Employer. 
 14. Rights as a Shareholder. The recipient of any award under the
Plan shall have no rights as a shareholder with respect to any Common Stock until the date the recipient becomes the holder of record of those shares. Except as otherwise expressly provided in the Plan, no adjustment shall be made for dividends or
other rights for which the record date occurs before the date the recipient becomes the holder of record. 
 Adopted March 12, 1997 
 Amended May 17, 2001 
 Amended May 13, 2004 
 Amended January 23, 2009 
 Amended May 21, 2009Loan and Security Agreement

 Exhibit 10.1 
 LOAN AND SECURITY AGREEMENT 
 (Quest Software – Polaris Way – Loan No. 3700038-001)

  

			
	Agreement Date:	    	August 3, 2009
		
	Borrower:	    	Quest Software, Inc., a Delaware corporation
		
	Borrower’s Address:	    	Quest Software, Inc.
		    	5 Polaris Way
		    	Aliso Viejo, CA 92656
		    	Attention: David Cramer
		
	Lender:	    	Mutual of Omaha Bank, a federally chartered thrift
		    	Loan No. 3700038-001
		
	Lender’s Address:	    	4657 MacArthur Court, Suite 1480
		    	Newport Beach, CA 92660
		    	Attention: James S. Knight and Jeff Barnett
		
	Property:	    	One three-story approximate 78,072 square foot office building and one four-story approximate 90,630 square foot office building, located on approximately 7.47 acres of real property at 4
& 5 Polaris Way, Aliso Viejo, California, as legally described on Exhibit “A”, and all appurtenances thereto.

 This Loan and Security Agreement (“Agreement”) is entered into as of the Agreement Date
between Borrower and Lender. 
 FACTUAL BACKGROUND 
 A. This Agreement evidences a $34,000,000 loan (the “Loan”) made by Lender to Borrower. 
 B. The Loan is evidenced by the Note. The Note is secured by the Deed of Trust covering the Property and various other documents described as part of the
Loan Documents below. The Note is fully recourse to Borrower. 
 C. Capitalized terms used in this Agreement will have the meanings
established in Section 1 below unless otherwise defined on the cover page, in this Factual Background section, or in the text of this Agreement. 
 AGREEMENT 
 For valuable consideration, the receipt and sufficiency of which are acknowledged,
Lender and Borrower agree as follows: 
 1. Definitions. 
 As used in this Agreement, the following terms will have the meanings established below: 
 1.1
“Agreement” means this Loan and Security Agreement and all exhibits attached to this Agreement, as the Agreement may be modified and amended from time to time. 
 1.1 “Anti-Terrorism Laws” means any present or future laws relating to terrorism or money laundering, including Executive Order
No. 13224 (effective September 24, 2001), the US Patriot Act, the laws comprising or implementing the Bank Secrecy Act, and the laws administered by the Office of Foreign Assets Control (“OFAC”). 
 1.2 “Banking Day” means any day other than a Saturday or Sunday in which banks are open for business in Newport Beach, California.

 1.3 “Blocked Person” means any Person: (i) listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224; (ii) owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224; (iii) with which any
Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law; (iv) that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224; or
(v) that is named a “specially designated national or “blocked person” on the most current list published by OFAC or other similar list. 
  

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 1.4 “Borrower’s Affiliates” means: (i) a spouse of any of Borrower’s
Affiliates; (ii) any relative (by blood, adoption, or marriage) of any of Borrower’s Affiliates within the third degree; (iii) any member, director, or officer of Borrower or any of Borrower’s Affiliates; (iv) any
corporation, partnership, limited liability company, trust, unincorporated association, joint venture, organization, or other business or legal entity of which Borrower or any of Borrower’s Affiliates are a member, partner, principal, trustee,
director, or officer; and (v) any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with Borrower or any of Borrower’s Affiliates. 
 1.5 “Company Prepared Financial Statements” means those balance sheets, income statements, cash flow statements (sometimes called flow
of funds statements or statements of changes in financial position), and other financial statements internally prepared by the Borrower (on a consolidated basis), based on GAAP that fairly represent (in the opinion of the Lender), in all material
aspects, the financial condition of the Borrower. Each Company Prepared Financial Statement must be certified as true and correct by an Authorized Person.
 1.6 “County” means the county in which the Land is located, which is the County of Orange, State of California, and all applicable agencies, departments, commissions, councils, boards, and committees.

 1.7 “Deed of Trust” means the Deed of Trust, Security Agreement, Assignment of Rents and Leases, and Fixture Filing of
even date granted by Borrower, as Trustor, in favor of Lender, as beneficiary. 
 1.8 “Financial Information” means all
financial statements and other financial information required of Borrower under the Loan Documents. 
 1.9 “Financing
Statement” means a UCC-1 financing statement(s) executed by Borrower, as debtor, in favor of Lender as secured party, to be filed in the Office of the Secretary of State of Delaware, and to the extent Lender determines it necessary, to be
filed in the official records of the County. 
 1.10 “GAAP” means generally accepted accounting principles in the United
States of America, as in effect from time to time, that are consistently applied and free of material misrepresentation, set forth in: (i) the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants; (ii) the statements and pronouncements of the Financial Accounting Standards Board; and (iii) other statements by any other entity as may be in general use by significant segments of the accounting profession
that are applicable in the circumstances as of the date of determination. 
 1.11 “Governmental Authorities” means any
applicable local, municipal, county, state, or federal agency, board, commission, council, department, committee, or similar governmental arm having jurisdiction over the Property, Borrower, or Borrower’s activities. 
 1.12 “Land” means the approximate 7.47 net acres of land located in the City of Aliso Viejo, California, as more particularly described
in Exhibit “A”. 
  

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 1.13 “Loan Amount” means the total amount of principal, interest, and other charges,
fees, and required payments that are due and payable from time to time by Borrower under the Loan Documents. 
 1.14 “Loan Closing
Date” means the date upon which Borrower has satisfied all conditions to the funding and closing of the Loan, as described in the Loan Documents. 
 1.15 “Loan Documents” means, collectively, this Agreement, Note, and Financing Statement, together with all of their exhibits and schedules and all other documents that evidence, secure, or otherwise
pertain to the Loan, as any or all may be modified, supplemented, extended, restated, or amended in accordance with their terms. 
 1.16
“Loan Fee” means a fee payable by Borrower to Lender concurrent with the initial funding of the Loan on the Loan Closing Date in immediately available funds in the amount of $85,000.00. 
 1.17 “Loan-to-Value Ratio” means the ratio of the aggregate committed amount of the Loan to the as-is market value of the Property.

 1.18 “Material Adverse Effect” means any fact, event, or circumstance that, alone or when taken with other events or
conditions occurring or existing concurrently with the event or condition: (i) has or is reasonably expected to have a material adverse effect on or materially impairs the ability of Borrower to pay and perform its obligations under the Loan
Documents; (ii) materially impairs the ability of Lender to enforce its rights and remedies under any Loan Documents; or (iii) has or is reasonably expected to have any material adverse effect on the Property, the liens in favor Lender or
the priority of the liens in favor Lender. 
 1.19 “Maturity Date” has the meaning established in the Note. 
 1.20 “Net Income” means the net income of Borrower as determined under GAAP. 
 1.21 “Note” means the Secured Promissory Note executed as of the Agreement Date by Borrower and payable to Lender (as amended,
supplemented, extended, restated, or otherwise amended from time to time). 
 1.22 “Obligations” means all of the duties and
obligations, whether payment or performance, of Borrower to Lender under the Loan Documents. 
 1.23 “Permitted Liens” means
(i) those exceptions set forth in the Title Policy, (ii) any purchase money liens on any Personal Property incurred in the ordinary course of Borrower’s business, and (iii) any other liens that have been approved in writing by
Lender. 
 1.24 “Person” means any individual, corporation, partnership, limited liability company, trust, unincorporated
association, joint venture, organization, business, or other legal entity, and any government or any governmental agency or political subdivision. 
 1.25 “Personal Property” means all personal property of Borrower, both tangible and intangible, listed in the granting clauses of the Deed of Trust, whether owned as of the Agreement 

  

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Date or later acquired by Borrower, and all replacements, substitutions, renewals, products, proceeds, accessions, and related actions. 
 1.26 “Requirements” means all existing and future laws, regulations, orders, building codes, restrictions, requirements, agreements, and
commitments of all applicable parties and Governmental Authorities applicable to the use and ownership of the Property. 
 1.27
“Title Company” means Fidelity National Title Company, or any other title company, agency, and underwriter approved by Lender and Borrower. 
 1.28 “Title Policy” or “Title Policies” means any title insurance coverages, including a lender’s policy of title insurance required by Lender to insure any insurable interests
under the Loan and Loan Documents. 
 2. Disbursement of Loan Proceeds and Repayment of Loan. 
 2.1 Loan Disbursement Procedure Generally. Subject to the terms and conditions of this Agreement, Lender will disburse to Borrower the proceeds of
the Loan on the Loan Closing Date. Prior to the Loan Closing Date, Borrower has paid to Lender the required Loan Fee. 
 2.2 Repayment
Generally. Borrower will make monthly payments as required under the terms of the Note. 
 3. Covenants of the Borrower. 
 3.1 Permits, Licenses and Approvals. Borrower will properly obtain, comply with, and keep in effect all permits, licenses, and approvals that are
required to be obtained from any Governmental Authorities in order to occupy, operate, and otherwise manage the Property. 
 3.2 Site
Visits. Lender and its agents and representatives will have the right, at any reasonable time at its own risk, to enter and visit the Property for the purposes of performing an appraisal, or any other reasonable investigation. Lender also will
have the right to examine, copy, and audit the books, records, accounting data, and other documents of Borrower and its contractors relative to the Property. Lender is under no duty to visit the Property or to examine any books or records. Any site
visit, observation, or examination by Lender will be solely for the purpose of protecting Lender’s rights and interests. No site visit, observation, or examination by Lender will impose any liability on Lender or result in a waiver of any
default of Borrower. 
 3.3 Protection Against Lien Claims. Borrower will promptly pay, post one or more payment bonds to cover or
avoid any mechanic’s liens or otherwise discharge all claims and liens for labor done and materials and services furnished to the Property. Lender may require Borrower to post one or more payment bonds to cover or avoid any mechanic’s
liens. Borrower agrees to indemnify Lender for, from, and against all claims of any contractor, subcontractor, material supplier, or other lien claimant. 
  

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 3.4 Insurance. Borrower, at its expense, will obtain and deliver to Lender policies of insurance
providing the following: 
 (a) Policies of insurance evidencing bodily injury, death or property damage liability coverages
in amounts not less than $2,000,000 (combined single limit), and an excess/umbrella liability coverage in an amount not less than $5,000,000 will be in effect with respect to Borrower. The policies must be written on an occurrence basis so as
to provide blanket contractual liability, broad form property damage coverage, and coverage for products and completed operations. 
 (b) “Special Cause of Loss” insurance on the Property in an amount not less than the full insurable value on a replacement cost basis of the insured Property and related personal property. 
 (c) If applicable, evidence of worker’s compensation insurance coverage satisfactory to Lender. 
 (d) If all or any part of the Property lies within a “special flood hazard area” as designated on maps prepared by the
Department of Housing and Urban Development, a National Flood Insurance Association standard flood insurance policy, plus insurance from a private insurance carrier if necessary, for the duration of the Loan in the amount of the full insurable value
of the Property. 
 (e) The other insurance as Lender may reasonably require including, without limitation, errors and
omissions insurance with respect to the contractors, architects and engineers, and rent abatement and/or business loss. 
 (f)
All insurance policies will: (i) be issued by an insurance company having a rating of “A” VII or better by A.M. Best Co., in Best’s Rating Guide; (ii) name Lender as an additional insured on all liability insurance and as
mortgagee and loss payee on all casualty insurance; (iii) provide that Lender is to receive 30 days written notice prior to non-renewal or cancellation; (iv) be evidenced by a certificate of insurance to be held by Lender; and (v) be
in form and amounts reasonably acceptable to Lender. 
 3.5 Debt Service Coverage Ratio. At all times, the Debt Service Coverage Ratio
shall not be permitted to drop below 5.0 to 1.0. The term “Debt Service Coverage Ratio” means EBITDA divided by Contractual Debt Service, calculated on each calendar quarter afterward based on an aggregate four quarter rolling
basis. The term “EBITDA” means, for any period, the Net Income of Borrower for the applicable period, determined in accordance with GAAP plus interest expense, income tax expense, amortization expense, depreciation expense,
but, in each case, only to the extent considered in the determination of Net Income; provided that, so long as the credit facilities funded pursuant to that Credit Agreement dated February 17, 2009, between Borrower, certain lenders signatory
thereto, and Wells Fargo Foothill, LLC, as arranger and administrative agent (the “WF Credit Agreement”), remain outstanding, the term EBITDA will have the meaning established in the WF Credit Agreement. The term
“Contractual Debt Service” means all debt payment obligations (principal, interest, and other charges) on the Loan. 
  

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 3.6 Estoppels. Borrower agrees to use its commercially reasonable efforts (which shall exclude any
requirement to expend funds other than a nominal fee and reasonable legal fees) to obtain an estoppel certificate, in a form satisfactory to Lender in Lender’s reasonable discretion, from (a) Aliso Viejo Community Association, a California
non-profit public benefit corporation, or its successor, with respect to Declaration of Covenants, Conditions and Restrictions for Aliso Viejo Community Association dated April 1, 1982, and recorded April 6, 1982, at Instrument
No. 82-118353 in the office of the county recorder of Orange County, California, as amended, and (b) Shea Homes Limited Partnership, a California limited partnership doing business as Mission Viejo Company, or its successor, with respect
to that certain Grant Deed dated December 18, 1997, and recorded December 19, 1997, at Instrument No. 19970653373 in the office of the county recorder of Orange County, California. 
 3.7 Payment of Expenses. Borrower will pay Lender’s out of pocket costs and expenses reasonably incurred in connection with the making,
disbursement, and administration of the Loan, as well as any revisions, extensions, renewals, or “workouts” of the Loan, and in the exercise of any of Lender’s rights or remedies under this Agreement, except to the extent prohibited
by law. The costs and expenses include charges for title insurance (including endorsements), filing, recording and escrow charges, fees for appraisal and appraisal review, architectural and engineering review, construction services and environmental
services, inspections, mortgage taxes, legal fees and expenses of Lender’s counsel, and any other fees and costs for services, regardless of whether the services are furnished by Lender’s employees or agents or independent contractors.
Borrower acknowledges that amounts payable under this section are not included in any loan fees for the Loan. All the sums incurred by Lender and not immediately reimbursed by Borrower will be considered an additional loan to Borrower bearing
interest at the Default Rate provided in the Note. 
 3.8 Financial and Other Information of Borrower. Borrower will keep true and
correct financial books and records, using GAAP. Borrower will provide to Lender all of the following: 
 (a) Within 45 days
after each calendar quarter or within 15 days after filing, as applicable, quarterly Company Prepared Financial Statements or Form 10-Q Securities and Exchange Commission (“SEC”) filing, of Borrower. 
 (b) Within 120 days after each fiscal year or within 15 days after filing, as applicable, annual CPA audited financial statements or Form
10-K SEC filing, of Borrower prepared on a consolidated and consolidating basis. 
 (c) Within 45 days after each calendar
quarter, a quarterly compliance certificate, including all back-up calculations, signed and certified by chief financial officer or chief accounting officer for and on behalf of Borrower, evidencing compliance or non-compliance with the financial
covenants described in this Loan Agreement and confirming, to the knowledge of Borrower’s applicable Representative Officers (defined below) without any duty of inquiry, whether there is any Event of Default or event, that, with the giving of
notice or the passage of time, or both, would constitute an Event of Default. As used herein, the “Representative Officers” means any two representatives of Borrower holding the following positions in Borrower: (a) Senior Vice
President and 

  

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Chief Financial Officer, (b) Vice President, General Counsel and Secretary, (c) Vice President, Corporate Controller, (d) Vice President,
Finance Operations, and (e) Senior Manager, Assistant Treasurer. 
 If Borrower requests an extension of time for the filing of any SEC required
filings, Borrower agrees to promptly notify Lender of the same in writing. 
 3.9 Notices. Borrower will promptly notify Lender in
writing of: 
 (a) Any litigation affecting Borrower where the amount claimed is $5,000,000 or more, or any litigation
affecting the Property where the amount claimed is $1,000,000 or more. 
 (b) Any written communication that Borrower may
receive from any Governmental Authorities giving notice of any claim or assertion that the Property fails in any material respect to comply with any of the Requirements or any other applicable governmental law. 
 (c) Upon the occurrence of a Material Adverse Effect. 
 3.10 Performance of Acts. Upon request by Lender, Borrower will perform all acts that may be necessary or advisable to perfect any lien or security interest provided for in the Loan Documents or to carry out
the intent of the Loan Documents. 
 3.11 Negative Covenants. Without Lender’s prior written consent, Borrower will not:

 (a) engage in any business activities substantially different from Borrower’s present business; 
 (b) liquidate or dissolve Borrower’s business; or 
 (c) allow liens on the Property other than Permitted Liens and liens in favor of Lender. 
 3.12 Appraisals. Borrower agrees that Lender shall have the option from time to time during the term of the Loan to order an appraisal of the
Property from an appraiser selected by Lender, and Borrower, agrees to cooperate with Lender and Lender’s appraiser in connection with such appraisal(s), including, without limitation, providing access to the Property and disclosing information
requested by Lender and/or Lender’s appraiser. The appraisals will comply with all federal and state standards for appraisals and otherwise will be satisfactory to Lender in all material respects. Borrower shall pay the reasonable out
of pocket costs of up to two appraisals during the term of the Loan. 
 3.13 Subordination of Indebtedness Owing to Affiliates.
Borrower will cause all liens, security interests, and other charges on the Property to be fully subordinated in all aspects to the Obligations pursuant to written agreements satisfactory to Lender. 
  

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 4. Representations and Warranties. 
 4.1 Borrower. Borrower covenants that each representation and warranty established below is true, accurate, and correct in all respects as of the date of this Agreement (and will remain so at all times until
the Maturity Date): 
 (a) Borrower is a duly formed and validly existing corporation under the laws of, and in good standing
with, the State of Delaware. Borrower is duly registered to do business in the state where the Property is located. Borrower has complied in all material respects with any and all laws and regulations concerning its organization, existence, and the
transaction of its business. 
 (b) Borrower is authorized to execute, deliver, and perform under the Loan Documents. The Loan
Documents have been validly executed and delivered by Borrower and are valid and binding obligations of Borrower that are enforceable in accordance with their terms. 
 (c) To Borrower’s knowledge, Borrower is not in violation of any law, regulation, or ordinance, or any order of any court or
Governmental Authority. No provision or obligation of Borrower contained in any of the Loan Documents violates any of the Requirements, any other applicable law, regulation, or ordinance, or any order or ruling of any court or Governmental
Authority. No provision or obligation conflicts with, or constitutes a breach or default under, any agreement binding or regulating the Property. 
 (d) Except as previously disclosed in SEC filings, (i) there are no litigation, claims, actions, proceedings, or investigations pending against Borrower or affecting the Property, and (ii) to the best of
Borrower’s knowledge, there has been no written threat of any litigation, claim, action, proceeding, or investigation against Borrower or affecting the Property. 
 (e) All financial information that has been and will be delivered to Lender, including all information relating to the financial condition
of Borrower, or the Property, fairly and accurately represents the financial condition being reported on. All the information was prepared in accordance with GAAP, unless otherwise noted. There has been no material adverse change in any financial
condition reported at any time to Lender. 
 (f) All reports, documents, instruments, information, and forms of evidence that
have been delivered to Lender concerning the Loan or required by the Loan Documents are accurate, correct, and sufficiently complete in all material respects to give Lender true and accurate knowledge of their subject matter. None of them contains
any material misrepresentation or omission. 
 (g) Borrower has filed and will continue to file all required state, federal,
and local income tax returns or obtained extensions, and has paid and will pay all taxes that 

  

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are due and payable (including all applicable transaction privilege taxes). Borrower knows of no basis for any additional assessment of taxes. 
 (h) Borrower is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal Revenue Code of 1986, as
amended from time to time. 
 (i) To Borrower’s knowledge: (i) the Property complies with the Requirements of all
Governmental Authorities related to the Americans with Disabilities Act (or similar state, county, or local law); (ii) there are no underground storage tanks located on the Property; (iii) Borrower has no ongoing financial liability or
performance obligations under any judgment or edict issued by any environmental control board of any Governmental Authority; (iv) the Property is physically and legally separated for lot split, subdivision, and tax purposes from any adjoining
or nearby property owned by Borrower or Borrower’s Affiliates. 
 (j) Neither Borrower nor its subsidiaries, affiliates,
or any person or entity constituting a guarantor (called, collectively, the “Credit Parties”): (i) is in violation of any Anti-Terrorism Law; (ii) engages in or conspires to engage in any transaction that evades or avoids
(or has the purpose of evading or avoiding) or attempts to violate any Anti-Terrorism Law; (iii) is a Blocked Person or is controlled by a Blocked Person; or (iv) is providing or will provide material, financial, or technical support or
other services to or in support of acts of terrorism of a Blocked Person. Further, no Credit Party or any of its agents acting in any capacity in connection with the transactions contemplated by this Agreement, conducts any business or engages in
making or receiving any contribution of funds, goods, or services to or for the benefit of any Blocked Person or deals in or otherwise engages in any transaction related to any property or interest in any property blocked by any Anti-Terrorism Law.

 5. Conditions Precedent to Closing. 
 5.1 Borrower Delivery Terms. The following will be conditions precedent to Lender’s obligations to close the Loan, unless otherwise waived in writing by Lender: 
 (a) Borrower will deliver to Lender the Financial Information, certified as being true, correct, and complete in all material respects by
an authorized officer of the Borrower. 
 (b) Borrower will provide at Borrower’s cost and expense, all organizational
documents requested by Lender in its sole and exclusive discretion. 
 (c) The Loan-to-Value Ratio does not exceed 70%.

 (d) Borrower will provide evidence of the insurance required above. 
 (e) Borrower has provided to Lender evidence that all taxes and assessments levied against or affecting the Property have been paid
current, including but not limited to any property owner’s association charges. 
  

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 (f) Borrower will have provided to Lender evidence satisfactory to Lender in its sole and
absolute discretion that the Property is properly zoned for its intended use and that any and all zoning stipulations have been complied with by Borrower. 
 (g) Lender will have received, reviewed, and approved, in Lender’s sole and absolute discretion, environmental reports and other due diligence investigations in form and content acceptable to Lender. 

(h) Lender will have received, reviewed, and approved, in Lender’s sole and absolute discretion, an appraisal of the Property in
form and content acceptable to Lender in its sole and absolute discretion showing that the Loan-to-Value limitations established in this Agreement will be met. 
 (i) Borrower has paid to Lender, in immediately available funds, all fees and costs called for under this Agreement. 
 (j) Borrower has delivered to Lender any other item reasonably deemed necessary to Lender, and has fulfilled any other condition
reasonably required by Lender. 
 (k) All of Borrower’s representations and warranties established in the Loan Documents
will be true and correct in all material respects. 
 (l) The Title Company has issued, or committed to issue, the Title
Policy underwritten by the Title Company in an amount not less than the amount of the sum of the Loan and insuring the lien of the Deed of Trust to be a first priority lien on the Property, subject only to the exceptions and conditions to title as
Lender has approved in its sole discretion. 
 (m) No Event of Default exists nor any event exists that, with the giving of
notice or the passage of time, or both, would constitute an Event of Default. 
 5.2 Loan Documents. By no later than the Loan Closing
Date, Borrower will have executed or obtained the execution of, and delivered to Lender, all applicable documents and instruments in form and content required by Lender and its counsel, including, without limitation, the following Loan Documents,
and any and all other the documentation reasonably required by Lender: 
 (a) This Agreement; 
 (b) The Note; 
 (c) The Deed of Trust; 
 (d) The Financing Statement, one for filing with the Delaware Secretary of State and, to
the extent Lender determines it necessary, one for recordation in the official records of the County; 
 (e) Loan Certificate
of Borrower; and 
  

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 (f) Those legal opinions as may be required of Borrower for enforceability, authority,
formation, and similar matters. 
 6. Default and Remedies. 
 6.1 Events of Default. Each of the following will be a default under this Agreement (each, an “Event of Default”): 
 (a) Borrower fails to pay any monetary amount under any Loan Document within 10 days after the date the payment is due, or if there is not
specified due date then within 10 days after written notice from Lender. 
 (b) Borrower fails to comply with any non-monetary
covenant contained in this Agreement or any other Loan Document and does not cure that failure within 20 days after written notice from Lender; however, if the failure or neglect of performance is not capable of being cured within the 20-day period,
the failure or neglect will not constitute an Event of Default if Borrower promptly commences remedial measures and diligently and continually proceeds with the remedial measures until the failure or neglect is completely cured. No cure period can
extend beyond 30 days following the initial written notice to the Borrower. 
 (c) Borrower becomes insolvent or the subject
of any bankruptcy or other voluntary or involuntary proceeding, in or out of court, for the adjustment of debtor-creditor relationships (“Insolvency Proceeding”). 
 (d) Borrower dissolves, terminates, or liquidates. 
 (e) Any representation or warranty made or given in any of the Loan Documents proves to be false or misleading in any material adverse
respect and the matter is not cured within 20 days’ notice from the Lender; however, if the breach is not capable of being cured within the 20-day period, the breach will not constitute an Event of Default if Borrower promptly commences
remedial measures and diligently and continually proceeds with remedial measures until the breach is completely cured (but no cure period can extend beyond 30 days following the initial written notice to the Borrower). 
 (f) Under any of the Loan Documents, an Event of Default (as defined in the particular Loan Document) occurs. 
 (g) Lender fails to have an enforceable first lien on or security interest in any property given as security for the Loan (except as
otherwise agreed by Lender in writing). 
 6.2 Remedies. 
 (a) If an Event of Default occurs, Lender may exercise any right or remedy that it has under any of the Loan Documents or that is
otherwise available at law or in equity or by statute. All of Lender’s rights and remedies will be cumulative. If any 

  

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Event of Default occurs, Lender’s obligation to lend under the Loan Documents will automatically terminate. No disbursement of funds by Lender will cure
any default of Borrower, unless Lender agrees otherwise in writing in each instance. 
 (b) If Borrower becomes the subject of
any Insolvency Proceeding, all of Borrower’s obligations under the Loan Documents will automatically become immediately due and payable upon the filing of the petition commencing the proceeding, all without notice of default, presentment,
demand for payment, protest, notice of nonpayment or dishonor, or other notices or demands of any kind or character. Upon the occurrence of any other Event of Default, all of Borrower’s obligations under the Loan Documents may become
immediately due and payable without additional notice of default, presentment, demand for payment, protest, notice of nonpayment or dishonor, or other additional notices or demands of any kind or character, all at Lender’s option, exercisable
in its sole discretion. 
 (c) Also, upon any Event of Default, Lender will have the right in its sole discretion to enter and
take possession of the Property, whether in person, by agent or by court-appointed receiver. If Lender exercises any of the rights or remedies provided in this clause (c), Lender’s exercise will not make Lender, or cause Lender to be deemed to
be, a member, partner, or joint venturer of Borrower. 
 7. Intentionally Omitted. 
 8. Miscellaneous Provisions. 
 8.1 No Waiver; Consents. Each waiver by Lender must be in
writing, and no waiver will be construed as a continuing waiver. No waiver will be implied from Lender’s delay in exercising or failure to exercise any right or remedy against Borrower or any security. Consent by Lender to any act or omission
by Borrower will not be construed as a consent to any other or subsequent act or omission or as a waiver of the requirement for Lender’s consent to be obtained in any future or other instance. All rights and remedies of Lender are cumulative.

 8.2 Purpose and Effect of Lender Approval. Lender’s approval of any matter in connection with the Loan will be for the sole
purpose of protecting Lender’s security and rights. No Lender approval will result in a waiver of any default of Borrower. Lender’s approval will not be a representation of any kind with regard to the matter being approved. 
 8.3 No Commitment to Increase Loan. Borrower acknowledges that no action by Lender will in any manner commit or obligate Lender to increase the
amount of the Loan. 
 8.4 No Third Parties Benefited. This Agreement is made and entered into for the sole protection and benefit of
Lender and Borrower and their permitted successors and assigns. No trust fund is created by this Agreement, and no other persons or entities will have any right of action under this Agreement or any right to the Loan funds. 
  

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 8.5 Joint and Several Liability. If Borrower consists of more than one person or entity, each will
be jointly and severally liable to Lender for the faithful performance of this Agreement. 
 8.6 Notices. To be effective, all
required or permitted communications, notices, approvals, consents, and demands of any kind of either party must be made in writing, and must be delivered by personal service, by United States registered or certified mail (postage prepaid, return
receipt requested), by telecopy facsimile, or by overnight express delivery to parties at the addresses and/or telecopy numbers identified on the cover page of this Agreement. All notices delivered in this manner will be deemed received on the date
of delivery or telecopy, if sent by hand-delivery or telecopy, or on the next business day after deposit with a recognized overnight express delivery service, or on the third day after deposit with the United States certified or registered mail.
Either party may change its address by giving the other party written notice of its new address in the manner established above. 
 8.7
Authority to File Notices. Borrower irrevocably appoints Lender as its attorney-in-fact, with full power of substitution, to file for record, at Borrower’s cost and expense and in Borrower’s name, any notices of completion, notices
of cessation of labor, or any other notices that Lender in its sole discretion may consider necessary or desirable to protect its security, if Borrower fails to do so. The appointment granted in this Section 8.7 will be deemed to be a
power coupled with an interest. 
 8.8 Actions. Lender will have the right, but not the obligation, to commence, appear in, and defend
any action or proceeding that might affect its security or its rights, duties, or liabilities relating to the Loan, the Property, or any of the Loan Documents. Borrower will pay promptly on demand all of Lender’s reasonable out-of-pocket costs,
expenses, and legal fees and expenses of Lender’s counsel incurred in those actions or proceedings. 
 8.9 Attorneys’
Fees. Borrower will promptly pay to Lender, upon demand, with interest at the Default Rate, reasonable attorneys’ fees and all costs and other expenses paid or incurred by Lender in enforcing or exercising its rights or remedies
created by, connected with or provided for in this Agreement or any of the other Loan Documents, and payment will be secured by the Deed of Trust. If at any time Borrower fails, refuses, or neglects to do any of the things in this Agreement
provided to be done by Borrower, Lender will have the right, but not the obligation, to do the same but at the expense and for the account of Borrower. The amount of any monies so expended or obligations so incurred by Lender, together with
interest thereon at the Default Rate, will be repaid to Lender immediately upon written demand for payment and will be secured by the Deed of Trust. Whenever Borrower is obligated to pay or reimburse Lender for any attorney fees, those fees will
include the allocated costs for services of in-house counsel. 
 8.10 Indemnification. To the fullest extent permitted by law,
Borrower agrees to protect, indemnify, defend and save harmless Lender, its directors, officers, agents, and employees for, from, and against any and all loss, cost, claim, demand, liability, expense, or damage of any kind or nature, including
reasonable legal fees and expenses on account of any matter arising out of this Agreement or any of the other Loan Documents or in connection with the Loan, except those matters caused by the Lender’s gross negligence or willful misconduct.

  

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Upon receiving knowledge of any suit, claim, or demand asserted by a third party that Lender believes is covered by this indemnity, Lender will give Borrower
notice of the matter and an opportunity to defend it, at Borrower’s sole cost and expense, with legal counsel satisfactory to Lender. Lender also may require Borrower to so defend the matter. The obligations on the part of Borrower under this
Section 8.10 will survive the closing of the Loan and the repayment of the Loan. 
 8.11 Governing Law and Jurisdiction.
This Agreement and the Loan Documents will be governed by, and construed in accordance with, the laws of the State of California. Borrower submits to jurisdiction and venue in Orange County, California, and agrees that any and all litigation or
arbitration proceedings will be maintained in Orange County, California. Without limiting the generality of the foregoing, Borrower waives and agrees not to assert by way of motion, defense, or otherwise in the suit, action, or proceeding, any claim
that any Borrower is not personally subject to the jurisdiction of the courts of the State of California, Orange County, and the United State District Court for the State of California, that the suit, action, or proceeding is brought in an
inconvenient forum, or that the venue of the suit, action, or proceeding is improper. 
 8.12 Successors and Assigns; Participations.
The terms of this Agreement will bind and benefit the heirs, personal representatives, successors, and assigns of the parties; however, Borrower may not assign this Agreement any funds from the Loan or assign or delegate any of its rights or
obligations, without the prior written consent of Lender in each instance. Lender, in its sole discretion, may sell or assign participations or other interests in all or part of the Loan on the terms and subject to the conditions of the Loan
Documents, all without notice to or the consent of Borrower. Also, without notice to or the consent of Borrower, Lender may disclose to any actual or prospective purchaser of any securities issued or to be issued by Lender, and to any actual or
prospective purchaser or assignee of any participation or other interest in the Loan or any other loans made by Lender to Borrower (whether under this Agreement or otherwise), any financial or other information, data, or material in Lender’s
possession relating to Borrower, the Loan, or the Property. 
 8.13 Relationships With Other Lender Customers. From time to time,
Lender may have business relationships with Borrower’s customers, suppliers, contractors, members, tenants, partners, shareholders, officers, or directors, or with businesses offering products or services similar to those of Borrower, or with
persons seeking to invest in, borrow from, or lend to Borrower. Borrower agrees that Lender may extend credit to the parties and may take any action it may deem necessary to collect the credit, regardless of the effect that the extension or
collection of credit may have on Borrower’s financial condition or operations. Borrower further agrees that Lender is not obligated to disclose to Borrower any information concerning any other Lender customer. 
 8.14 Disclosure to Title Company. Without notice to or the consent of Borrower, Lender may disclose to any title insurance company that insures
any interest of Lender under the Title Policy (whether as primary insurer, coinsurer, or reinsurer) any information, data, or material in Lender’s possession relating to Borrower, the Loan, the Loan Documents, or the Property that may be
normally and customarily required for the insurance or endorsements or other title purposes. 
  

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 8.15 Improvement District. Borrower will not (or permit Tenant to) consent to, vote in favor of,
or directly or indirectly advocate or assist in the incorporation of any part of the Property into any improvement or community facilities district, special assessment district, or other district without Lender’s prior written consent in each
instance. 
 8.16 Restriction on Personal Property. Other than in the case of replacements with as good or better like property in the
ordinary course of Borrower’s business, Borrower will not sell, convey, or otherwise transfer or dispose of its interest in any personal property in which Lender has a security interest, or contract to do any of the foregoing, without the prior
written consent of Lender in each instance. 
 8.17 Severability. The invalidity or unenforceability of any one or more provisions of
this Agreement will in no way affect any other provision. If any court of competent jurisdiction determines any provision of this Agreement or any of the other Loan Documents to be invalid, illegal, or unenforceable, that portion either will be
modified to the minimum extent necessary to make its application valid and enforceable in a manner consistent with the Loan Documents or will be deemed severed from the rest, and the rest will remain in full force and effect as though the invalid,
illegal, or unenforceable portion had never been a part of the Loan Documents. 
 8.18 Interpretation. Whenever the context requires,
all words used in the singular will be construed to have been used in the plural, and vice versa, and each gender will include any other gender. The captions of the sections of this Agreement are for convenience only and do not define or limit any
terms or provisions. The word “include(s)” means “include(s), without limitation,” and the word “including” means “including, but not limited to.” No listing of specific instances, items, or
matters in any way limits the scope or generality of any language of this Agreement. 
 8.19 Amendments. This Agreement may not be
modified or amended except by a written agreement signed by the parties. 
 8.20 Counterparts. This Agreement may be executed in any
number of original or telecopy counterparts, each of which will be effective on delivery and all of which together will constitute one binding agreement of the parties to the Agreement. Any signature page of this Agreement may be detached from any
executed counterpart of this Agreement without impairing the legal effect of any signatures and may be attached to another counterpart of this Agreement that is identical in form to the document signed (but that has attached to it one or more
additional signature pages). 
 8.21 Language of Agreement. The language of this Agreement will be construed as a whole according to
its fair meaning, and not strictly for or against any party. 
 8.22 Survival. The representations, warranties, acknowledgments, and
agreements established in this Agreement will survive the date of this Agreement. 
 8.23 Further Performance. Borrower, whenever and
as often as they will be requested by Lender, will execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, all further instruments and documents (and to do any and all 

  

 16 

 
things) as may be reasonably requested by Lender in order to carry out the intent and purpose of this Agreement and the other Loan Documents. 
 8.24 Time is of the Essence. Time is of the essence in the performance of this Agreement and the other Loan Documents by Borrower, and each and
every term of the Loan Documents. 
 8.25 Recitals; Exhibits. The facts contained in the Factual Background to this Agreement
established above are true, complete, accurate, and correct and are incorporated by reference. The exhibits to this Agreement are incorporated by reference. 
 8.26 Integration and Relation to Loan Commitment. The Loan Documents: (i) integrate all the terms and conditions mentioned in or incidental to this Agreement; (ii) supersede all oral negotiations and
prior writings with respect to their subject matter; including Lender’s loan commitment to Borrower; and (iii) are intended by the parties as the final expression of the agreement with respect to the terms and conditions established in
those documents and as the complete and exclusive statement of the terms agreed to by the parties. No representation, understanding, promise, or condition will be enforceable against any party unless it is contained in the Loan Documents. If there
is any conflict between the terms, conditions, and provisions of this Agreement and those of any other agreement or instrument, including any other Loan Document, the terms, conditions, and provisions of this Agreement will prevail. 
 8.27 Discretion. Whenever the approval or consent is required of the Lender for anything under the Loan Documents, lender may give or withhold its
consent or approval in its sole, absolute, and unfettered discretion, unless the Loan Documents specifically establish a different standard for approval (e.g., good faith, reasonable, etc.). 
 8.28 Binding Arbitration. 
 (a) The parties agree, upon demand by any party, to submit to binding arbitration all claims, disputes, and controversies between or among them (and their respective employees, officers, directors, attorneys, and other agents), whether in
tort, contract, or otherwise arising out of or relating to in any way this Agreement or the other Loan Documents. 
 (b) Any
arbitration proceeding will: (i) proceed in a location in Orange County, California, selected by the American Arbitration Association (“AAA”); (ii) be governed by the Federal Arbitration Act (Title 9 of the United States
Code), notwithstanding any conflicting choice of law provision in any of the documents between the parties; and (iii) be conducted by the AAA, or any other administrator as the parties mutually agree upon, in accordance with the AAA’s
commercial dispute resolution procedures, unless the claim or counterclaim is at least $1,000,000 exclusive of claimed interest, arbitration fees, and costs, in which case the arbitration will be conducted in accordance with the AAA’s optional
procedures for large, complex, and commercial disputes (the commercial dispute resolution procedures or the optional procedures for large, complex, and commercial disputes to be referred to, as applicable, as the “Rules”). If there
is any inconsistency between the terms of this Agreement and the Rules, the 

  

 17 

 
terms and procedures established in this Agreement control. Any party who fails or refuses to submit to arbitration following a demand by any other party
will bear all costs and expenses incurred by the other party in compelling arbitration of any dispute. Nothing contained in any of the Loan Documents will be deemed to be a waiver by Lender of the protections afforded to it under 12 U.S.C. § 91
or any similar applicable state law. 
 (c) The arbitration requirement does not limit the right of any party to
(i) foreclose against real or personal property collateral; (ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as
replevin, injunctive relief, attachment, or the appointment of a receiver, before during or after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of any party to submit any dispute
to arbitration, including those arising from the exercise of the actions detailed in subsections (i), (ii), and (iii) above. 
 (d) Any arbitration proceeding in which the amount in controversy is $1,000,000 or less will be decided by a single arbitrator selected according to the Rules. This single arbitration will not render an award of
greater than $1,000,000. Any dispute in which the amount in controversy exceeds $1,000,000 will be decided by majority vote of a panel of three arbitrators; however, all three arbitrators must actively participate in all hearings and deliberations.
The arbitrator will be a neutral attorney licensed in the State of California or a neutral retired judge of the state or federal judiciary of California, in either case with a minimum of ten years experience in the substantive law applicable to the
subject matter of the dispute to be arbitrated. The arbitrator will determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determining any claim. In any arbitration proceeding, the arbitrator will
decide (by documents only or with a hearing at the arbitrator’s discretion) any prehearing motions that are similar to motions to dismiss for failure to state a claim or motions for summary adjudication. The arbitrator will resolve all disputes
in accordance with the substantive law of California and may grant any remedy or relief that a court of the state could order or grant within the scope of the dispute and any ancillary relief as is necessary to make effective any award. The
arbitrator also will have the power to award recovery of all costs and fees, to impose sanctions, and to take all other actions as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the
California Rules of Civil Procedure, or other applicable law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The institution and maintenance of an action for judicial relief or pursuit of a
provisional or ancillary remedy does not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests the action for judicial relief. 
 (e) In any arbitration proceeding, discovery will be permitted in accordance with the Rules. All discovery is expressly limited to matters
directly relevant to the dispute being arbitrated and must be completed no later than 20 days before the hearing date and within 180 days of the filing of the dispute with the AAA. Any requests for an extension of the discovery periods, or any
discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is essential 

  

 18 

 
for the party’s presentation and that no alternative means for obtaining information is available. 
 (f) The resolution of any dispute arising pursuant to the terms of this Agreement will be determined by a separate arbitration proceeding,
and the dispute may not be consolidated with other disputes or included in any class proceeding. 
 (g) The arbitrator will
award all costs and expenses of the arbitration proceeding. 
 (h) To the maximum extent practicable, the AAA, the
arbitrators, and the parties agree to take all action required to conclude any arbitration proceeding within 180 days of the filing of the dispute with the AAA. No arbitrator or other party to an arbitration proceeding may disclose the existence,
content, or results of the arbitration, except for disclosures of information by a party required in the ordinary course of its business or by applicable law or regulation. If more than one agreement for arbitration by or between the parties
potentially applies to a dispute, the arbitration provision most directly related to the documents between the parties or the subject matter of the dispute controls. This arbitration provision will survive termination, amendment, or expiration of
any of the documents or any relationship between the parties. 
 8.29 Jury Waiver. TO THE EXTENT PERMITTED BY LAW, THE UNDERSIGNED
AND LENDER VOLUNTARILY, KNOWINGLY, IRREVOCABLY, AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) BETWEEN OR AMONG THE UNDERSIGNED AND LENDER
ARISING OUT OF OR IN ANY WAY RELATED TO THIS DOCUMENT OR ANY OTHER RELATED DOCUMENT OR ANY RELATIONSHIP BETWEEN LENDER AND BORROWER. THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO PROVIDE THE FINANCING DESCRIBED IN THIS
AGREEMENT OR IN THE OTHER LOAN DOCUMENTS. 
 INITIALS:     SD    /    DC    /             
 [SIGNATURES BEGIN ON THE NEXT PAGE] 
  

 19 

 COUNTERPART SIGNATURE PAGE 
 Executed as of the Agreement Date. 
  

			
	“Borrower”
	
	Quest Software, Inc., a Delaware corporation
		
	By:	 	 /s/ Scott Davidson

	Name:	 	 Scott Davidson

	Title:	 	 CFO

		
	By:	 	 /s/ David Cramer

	Name:	 	 David Cramer

	Title:	 	 VP, General Counsel

  

 20 

 COUNTERPART SIGNATURE PAGE 
 Executed as of the Agreement Date. 
  

			
	“Lender”
	
	Mutual of Omaha Bank, a federally chartered thrift
		
	By:	 	 /s/ Jeff Barnett

	Name:	 	 Jeff Barnett

	Title:	 	 VP

  

 21 

 EXHIBIT “A” 
 TO 
 LOAN AND SECURITY AGREEMENT 
 (Quest Software – Polaris Way – Loan No. 3700038-001) 
 (Land/
Property) 
 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF ALISO VIEJO, COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

 THOSE PORTIONS OF TRACT MAP NO(S). 14323 RECORDED IN BOOK 714, PAGES 49 AND 50; 14324 RECORDED IN BOOK 715, PAGES 9 AND 10; 14972 RECORDED IN BOOK 715,
PAGES 11 AND 12; AND THAT PORTION OF TRACT MAP NO. 14310 RECORDED IN BOOK 670, PAGES 45 AND 46, ALL OF MISCELLANEOUS MAPS, THAT HAS BEEN ABANDONED AS INSTRUMENT NO. 1997-0652771, ALL IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, MORE
PARTICULARLY DESCRIBED AS FOLLOWS: 
 PARCEL A:  
 PARCELS 4 AND 5 IN THE CITY OF ALISO VIEJO, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON EXHIBIT “B” ATTACHED TO LOT LINE ADJUSTMENT NO. LL-97-054, RECORDED DECEMBER 19, 1997 AS INSTRUMENT NO. 19970652822 OF OFFICIAL
RECORDS. 
 EXCEPT THEREFROM ALL PREVIOUSLY UNRESERVED MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND ALL UNDERGROUND WATER, IN OR UNDER OR
WHICH MAY BE PRODUCED FROM THE PROPERTY WHICH UNDERLIES A PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF THE PROPERTY FOR THE PURPOSE OF PROSPECTING FOR, THE EXPLORATION, DEVELOPMENT, PRODUCTION, EXTRACTION AND TAKING OF SAID MINERALS,
OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND WATER FROM THE PROPERTY BY MEANS OF MINES, WELLS, DERRICKS OR OTHER EQUIPMENT FROM SURFACE LOCATIONS ON ADJOINING OR NEIGHBORING LAND OR LYING OUTSIDE OF THE PROPERTY, IT BEING UNDERSTOOD THAT
THE OWNER OF SUCH MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND WATER, AS SET FORTH ABOVE, SHALL HAVE NO RIGHT TO ENTER UPON THE PROPERTY OR ANY PORTION THEREOF ABOVE SAID PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF
THE PROPERTY FOR ANY PURPOSE WHATSOEVER, AS RESERVED BY SHEA HOMES LIMITED PARTNERSHIP IN THE DEEDS RECORDED DECEMBER 19, 1997 AS INSTRUMENT NO. 19970653373, BOTH OF OFFICIAL RECORDS. 

 PARCEL B:  
 NON-EXCLUSIVE EASEMENTS FOR PEDESTRIAN AND VEHICULAR INGRESS AND EGRESS, PARKING, UTILITIES AND OTHER MATTERS ON, OVER, UNDER OR ACROSS PORTIONS OF PARCELS 1, 2, 3, 4 AND 5 AS SHOWN ON EXHIBIT “B” ATTACHED TO LOT LINE ADJUSTMENT
NO. LL 97-054, RECORDED ON DECEMBER 19, 1997 AS INSTRUMENT NO. 19970652822 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, AS SAID EASEMENTS ARE SET FORTH AND DEFINED IN ARTICLE 2 IN THAT CERTAIN DECLARATION OF RECIPROCAL EASEMENTS AND COVENANTS
EXECUTED BY FLUOR ENTERPRISES, INC., A CALIFORNIA CORPORATION, RECORDED MARCH 31, 2004 AS INSTRUMENT NO. 2004000265241 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. 
 Assessor’s Parcel No: 623-481-52 and 53 
 Borrower Initials:
    SD    /    DC     
  

 23

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