Document:

Assignment & Assumption of Office Space Lease, dated 04/01/2002

 EXHIBIT 10.12 
  
 Assignment and Assumption of Lease 
  
 This Assignment and Assumption of Lease (“Assignment”), is made and entered into as of the 1st day of April, 2002 (“Effective Date”), by and among First National Bank, a national banking association
(“Assignor”), and Pacific Mercantile Bank, a California corporation (“Assignee”), with respect to the following facts: 
  
 A. U.S. Property Fund GMBH & Co. KG, a German limited partnership (“Landlord”), and Assignor are the landlord and tenant, respectively,
under that certain Office Lease (the “Lease”), dated November 16, 2000, with respect to certain premises located in the City of La Jolla, County of San Diego, California, commonly known as 4225 Executive Square, Suite 150, La Jolla,
California 92037 (the “Premises”). 
  
 B. Assignor
desires to assign the Lease to Assignee, and the parties are entering into this Assignment for the purpose of accomplishing the assignment of Assignor’s interest in the Lease and the Premises. 
  
 NOW, THEREFORE, for sufficient consideration, the receipt of which is hereby
acknowledged, the parties hereto agree as follows: 
  
 1. Assignment and
Assumption of Lease. As of the Effective Date, and contingent upon the consent of Landlord to such assignment, as provided herein, Assignor hereby assigns to Assignee all of Assignor’s right, title and interest in and to the Lease,
including, without limitation, Assignor’s right, title and interest in and to the Security Deposit in the amount of $13,019.20 previously deposited with and held by Landlord pursuant to Article 21 of the Lease. Assignee hereby accepts the
foregoing assignment and, except as set forth in Section 2 below, agrees to be bound by the terms and conditions of the Lease, including, without limitation, all obligations to pay rent, additional rent, operating expenses, property taxes and other
amounts due to Landlord under the terms of the Lease, from and after the date hereof. Assignee further agrees to reimburse Assignor the amount of the aforementioned Security Deposit contemporaneously with or immediately prior to the complete
execution of this Assignment. 
  
 2. Rent; Operating Expenses. The parties
acknowledge and agree that the current monthly Base Rent payable under the Lease is $11,129.04. Assignor hereby agrees to continue to make the Base Rent payments to Landlord under the Lease for the months of April, May and June, 2002. Commencing on
July 1, 2002, all rental and other monetary obligations under the Lease shall be assumed by Assignee. Notwithstanding the foregoing, Assignor agrees to reimburse Assignee in an amount equal to twenty-five percent (25%) of the amount paid by Assignee
to Landlord as Assignee’s share of the Direct Expenses (as such term is defined in Section 4.2.2 of the Lease) incurred for the calendar year 2002 in excess of such Direct Expenses attributable to the Base Year (as such term is defined in
Section 4.2.1 of the Lease). The parties acknowledge and agree that the Base Year shall be calendar 2001. 
  
 3. Certifications. Assignor hereby certifies, represents and warrants to Assignee the following: 
  

 1 

 (a) A true, correct and complete copy of the Lease, is attached hereto as Exhibit A and made a part
hereof. The Lease has not been modified, changed, altered or amended in any respect except for the terms and conditions set forth in this Assignment. 
  
 (b) Assignor is not in arrears for any rent or other charges, there is not an existing default on the part of Assignor under the Lease, and to the best of
its knowledge, Assignor is not aware of any events currently existing or which with the passage of time, giving of notice or both, would constitute a default by Assignor under the Lease or which would give Landlord the right to cancel or terminate
the Lease. 
  
 4. Refurbishment Allowance. Section 8.6 of the Lease sets
forth the terms and conditions upon which Landlord is obligated to reimburse Assignor for certain costs incurred by Assignor in connection with the Refurbished Improvements (as such term is defined in the Lease). Assignor and Assignee hereby agree
as follows: 
  
 (a) All defined terms used in this Section 3 and
not otherwise defined herein shall have the meaning ascribed to such terms in Section 8.6 of the Lease. 
  
 (b) Assignor and Assignee acknowledge and agree that the sum of $13,268.65 (the “Undisbursed Allowance”) represents the amount of the
Refurbishment Allowance not previously reimbursed to Assignor. Landlord has agreed to reimburse Assignee in an amount up to the balance of the Undisbursed Allowance for all Refurbishment Allowance Items completed by Assignee on or before September
1, 2002, upon the terms and conditions set forth in Section 8.6.1.2 of the Lease. 
  
 (c) Following the full reimbursement by Landlord to Assignee of the Undisbursed Allowance, or the expiration of the period set forth in subsection (b) above, and provided that Assignee is not in default in the
performance of any of its obligations under the Lease, Assignor agrees to reimburse Assignee for additional amounts expended by Assignee on or before June 30, 2002 for Refurbishment Allowance Items, up to a maximum reimbursement by Assignor of
$16,731.35 (“Assignor’s Allowance”). Assignor’s Allowance shall only be payable by Assignor upon Assignee’s satisfaction of the conditions and compliance with the procedure for such reimbursement set forth in Section 8.6.1.2
of the Lease, including the submission to Assignor of the documentation set forth in Section 8.6.1.2.(A) of the Lease. In no event will Assignee be entitled to receive any portion of Assignor’s Allowance for Refurbished Improvements that have
not been completed on or before June 30, 2003. 
  
 (d) Assignor
shall pay the costs of removing Assignor’s signs located at the Premises. 
  
 (e) Notwithstanding the foregoing, Assignor shall have the right to offset against Assignor’s Allowance any amounts due and payable by Assignee to Assignor resulting from a default by Assignee under the Lease, as
set forth in Section 4.2 hereof. 
  
 5. Indemnities. 
  
 5.1. Assignor shall indemnify, defend and hold Assignee harmless from any
claim, cause of action, costs (including reasonable attorneys’ fees), or expense arising out of a breach of the Lease prior to the Effective Date. 
  

 2 

 5.2. Assignee shall indemnify, defend and hold Assignor harmless from any claim, cause of action, costs
(including reasonable attorneys’ fees), or expense arising out of a breach of the Lease on of after the Effective Date. 
  
 6. General. 
  
 6.1. Effect of Assignment. The Lease shall remain in full force and effect except to the extent that it is modified by this Assignment. 

 
 6.2. Entire Agreement. This Assignment sets forth the entire
understanding of the parties with respect to the within matters and may not be modified or amended except upon a writing signed by all parties. 
  
 6.3. Counterparts. This Assignment may be executed in multiple counterparts, each of which shall be deemed an original, and all of which shall
constitute but one and the same amendment. In any action or proceeding, any photographic, photostatic or other copy of this Assignment may be introduced into evidence without foundation. 
  
 6.4. Costs and Attorneys’ Fees. If there is any claim or controversy litigated in any lawsuit between any of the
parties hereto in connection with this Assignment, the prevailing party in the lawsuit shall be entitled to recover from the other parties its reasonable costs and attorneys’ fees. 
  
 6.5. Consent to Jurisdiction; Additional Waivers. Each of the parties hereto consents to the jurisdiction of any
state or federal court located within San Diego County, California in connection with any dispute from or related to this Agreement. Each party waives, to the fullest extent each may effectively do so, any defense or objection based upon forum non
conveniens and any defense or objection to venue of any action instituted within San Diego County, California. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION TO ENFORCE OR DEFEND ANY MATTER ARISING FROM OR RELATED TO
THIS ASSIGNMENT. 
  
 6.6. Governing Law. This Assignment
has been delivered and accepted at and shall be deemed to have been made in the State of California, and shall be interpreted, and the rights and liabilities of the parties hereto determined, in accordance with the internal laws (as opposed to
conflicts of laws provisions) of the State of California. 
  
 6.7.
Successors and Assigns. This Assignment shall be binding upon and shall inure to the benefit of the parties’ respective successors and assigns, subject to the provisions hereof. 
  
 6.8. Authority. Each of the signatories hereto certifies that such
party has all necessary authority to execute this Assignment. 
  
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 3 

 IN WITNESS WHEREOF, the parties hereto have executed this Assignment effective as of the Effective Date.

  

	 	 	ASSIGNOR:	 	 	 	ASSIGNEE:
				
	 	 	First National Bank, a national banking association	 	 	 	Pacific Mercantile Bank, a California corporation
						
	 	 	 By:
	 	 [SIGNATURE APPEARS HERE]

	 	 	 	 By:
	 	 [SIGNATURE APPEARS HERE]

	 	 	 	 	 Its:
	 	 EVP / CFO
	 	 	 	 	 	 Its:
	 	EVP /COO
						
	 	 	 By:
	 	  

	 	 	 	 By:
	 	 [SIGNATURE APPEARS HERE]

	 	 	 	 	 Its:
	 	  

	 	 	 	 	 	 Its:
	 	 EVP / CFO

  

 4 

 EXHIBIT A 
  

LEASE 
  

 Exhibit A 

 OFFICE LEASE 
  
 LA JOLLA EXECUTIVE TOWER 
  
 U.S. PROPERTY FUND GMBH & CO. KG, 
 a German limited partnership 
  
 as Landlord,

  
 and 
  
 FIRST NATIONAL BANK, 
 a national banking association 
  
 as Tenant. 

 TABLE OF CONTENTS 
  

	 	  	 	  	Page

	 ARTICLE 1
	  	 PREMISES, BUILDING, PROJECT, AND COMMON AREAS
	  	2
	 ARTICLE 2
	  	 LEASE TERM AND OPTION TERM
	  	4
	 ARTICLE 3
	  	 BASE RENT
	  	5
	 ARTICLE 4
	  	 ADDITIONAL RENT
	  	6
	 ARTICLE 5
	  	 USE OF PREMISES
	  	9
	 ARTICLE 6
	  	 SERVICES AND UTILITIES
	  	10
	 ARTICLE 7
	  	 REPAIRS
	  	12
	 ARTICLE 8
	  	 ADDITIONS AND ALTERATIONS
	  	12
	 ARTICLE 9
	  	 COVENANT AGAINST LIENS
	  	15
	 ARTICLE 10
	  	 INSURANCE
	  	15
	 ARTICLE 11
	  	 DAMAGE AND DESTRUCTION
	  	17
	 ARTICLE 12
	  	 NONWAIVER
	  	18
	 ARTICLE 13
	  	 CONDEMNATION
	  	19
	 ARTICLE 14
	  	 ASSIGNMENT AND SUBLETTING
	  	19
	 ARTICLE 15
	  	 SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL OF TRADE FIXTURES
	  	22
	 ARTICLE 16
	  	 HOLDING OVER
	  	23
	 ARTICLE 17
	  	 ESTOPPEL CERTIFICATES
	  	23
	 ARTICLE 18
	  	 SUBORDINATION
	  	23
	 ARTICLE 19
	  	 DEFAULTS; REMEDIES
	  	24
	 ARTICLE 20
	  	 COVENANT OF QUIET ENJOYMENT
	  	26
	 ARTICLE 21
	  	 SECURITY DEPOSIT
	  	26
	 ARTICLE 22
	  	 SUBSTITUTION OF OTHER PREMISES
	  	27
	 ARTICLE 23
	  	 SIGNS
	  	27
	 ARTICLE 24
	  	 COMPLIANCE WITH LAW
	  	28
	 ARTICLE 25
	  	 LATE CHARGES
	  	28
	 ARTICLE 26
	  	 LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT
	  	28
	 ARTICLE 27
	  	 ENTRY BY LANDLORD
	  	29
	 ARTICLE 28
	  	 TENANT PARKING
	  	29
	 ARTICLE 29
	  	 MISCELLANEOUS PROVISIONS
	  	30

  
 EXHIBITS 
  

	 EXHIBIT A  
	  	-  	  	 OUTLINE OF PREMISES

	 EXHIBIT B
	  	-  	  	 [INTENTIONALLY OMITTED]

	 EXHIBIT C
	  	-  	  	 FORM OF NOTICE OF LEASE TERM DATES

	 EXHIBIT D
	  	-  	  	 RULES AND REGULATIONS

	 EXHIBIT E
	  	-  	  	 FORM OF TENANT’S ESTOPPEL CERTIFICATE

  

 (i) 

 INDEX 
  

	 	  	Page(s)

	 Additional Rent
	  	6
	 all risks
	  	16
	 Alterations
	  	12
	 as built
	  	13
	 Bank Prime Loan
	  	28
	 Base Building
	  	12
	 Base Rent
	  	5
	 Base Year
	  	6
	 Base Year Electrical Costs
	  	7
	 Brokers
	  	33
	 Builder’s All Risk
	  	13
	 Building
	  	3
	 Building Common Areas
	  	3
	 Building Hours
	  	10
	 building standard
	  	9
	 Common Areas
	  	3
	 Contractor
	  	14
	 Direct Expenses
	  	6
	 Estimate
	  	9
	 Estimate Statement
	  	9
	 Estimated Excess
	  	8, 9
	 Excess
	  	8
	 Expense Year
	  	6
	 Force Majeure
	  	32
	 Holidays
	  	10
	 HVAC
	  	10
	 Interest Notice
	  	4
	 La Jolla Executive Tower
	  	3
	 Landlord
	  	1
	 Landlord Parties
	  	15
	 Landlord Repair Notice
	  	17
	 Landlord Supervision Fee
	  	15
	 Lease
	  	1
	 Lease Commencement Date
	  	4
	 Lease Expiration Date
	  	4
	 Lease Term
	  	4
	 Lease Year
	  	4
	 Lines
	  	34
	 Mail
	  	32
	 Market Rent
	  	4
	 Monument Sign
	  	27
	 Notices
	  	32
	 Operating Expenses
	  	6
	 Option Rent
	  	4
	 Option Rent Notice
	  	4
	 Option Term
	  	4
	 Original Improvements
	  	16
	 Original Tenant
	  	4
	 Outside Agreement Date
	  	5
	 Payment Address
	  	32
	 Premises
	  	3
	 Project
	  	3
	 Project Common Areas
	  	3

  

 (ii) 

	 	  	Page(s)

	 Proposition 13
	  	7
	 Provider
	  	35
	 Refurbished Allowance Items
	  	14
	 Refurbished Drawings
	  	14
	 Refurbished Improvements
	  	14
	 Refurbishment Allowance
	  	13
	 Renovations
	  	34
	 rent
	  	25
	 Rent
	  	6
	 Revised Statement
	  	9
	 Statement
	  	8
	 Subject Space
	  	19
	 Subsequent Year Electrical Costs
	  	7
	 Summary
	  	1
	 Tax Expenses
	  	7
	 Tax Expenses
	  	6
	 Tenant
	  	1
	 Tenant’s Acceptance
	  	5
	 Tenant’s Agents
	  	14
	 Tenant’s Name Sign
	  	27
	 Tenant’s Share
	  	8
	 Transfer
	  	21
	 Transfer Notice
	  	19
	 Transfer Premium
	  	21
	 Transferee
	  	19
	 Transfers
	  	19
	 worth at the time of award
	  	25

  

 (iii) 

 LA JOLLA EXECUTIVE TOWER 
  
 OFFICE LEASE 
  
 This Office Lease (the “Lease”), dated as of the date set forth in Section 1 of the Summary of Basic Lease Information (the
“Summary”), below, is made by and between U.S. PROPERTY FUND GMBH & CO. KG, a German limited partnership (“Landlord”), and FIRST NATIONAL BANK, a national banking association (“Tenant”). 
  
 SUMMARY OF BASIC LEASE INFORMATION 
  

	TERMS OF LEASE

	  	 DESCRIPTION

	 1.
	  	Date:	  	 	  	11/16    , 2000
			
	 2.
	  	 Premises
 (Article
1):
	  	 
				
	 	  	2.1	  	Building	  	4225 Executive Square, San Diego, California 92037, which consists of approximately 227,570 rentable square feet.
				
	 	  	2.2	  	Premises:	  	3,567 rentable (3,242 usable) square feet of space located on the first (1st) floor of the Building and commonly known as Suite 150, as further set forth in Exhibit
A to the Office Lease.
				
	 	  	2.3	  	Project:	  	The Building is part of an office project known as “La Jolla Executive Tower”, as further set forth in Section 1.1.2 of this Lease.
			
	 3.
	  	Lease Term	  	 
	 	  	(Article 2):	  	 
				
	 	  	3.1	  	Length of Term:	  	Six (6) years.
				
	 	  	3.2	  	Lease Commencement Date:	  	March 1, 2001.
				
	 	  	3.3	  	Lease Expiration Date:	  	February 28, 2007.

  

 -1- 

 Page: 1 Document Name: untitled 
  

	     NEXT
	  	PAGE 07 OF 08

  
 Vendor # :                 1710 U.S. PROPERTY FUND GMBH &CO KG 
  

	 Payable
Number

	  	 Invoice Number

	  	Invoice
Date

	  	 Payable Amount

	  	Amount
Outstanding

	 22546
	  	 USKG01 0150A
 DATE PAID: 12/04/02
AMT
PAID: 2,631.50
CHECK #: 64242
	  	11/24/02	  	 2,631.50
	  	        .00
	 22557
	  	 2572-P
 DATE PAID: 12/04/02
AMT PAID:
1,500.00
CHECK #: 64242
	  	11/02/02	  	 1,500.00
	  	.00
	 23175
	  	 LA JOLLA-JAN RE
 DATE PAID:
12/27/02
AMT PAID: 12,101.59
CHECK #: 64635
	  	12/03/02	  	 12,101.59
	  	.00
	 23467
	  	 2597-P
 DATE PAID: 01/07/03
AMT PAID:
1,500.00
CHECK #: 64815
	  	01/02/03	  	 1,500.00
	  	.00
	 23746
	  	 USKG01 0150
 DATE PAID: 01/21/03
AMT
PAID: 928.50
CHECK #: 64990
	  	01/15/03	  	 928.50
	  	.00

  
 Window APS20350/1 at
FISERV 

	4.	Base Rent (Article 3): 

  

	 Lease Month

	  	Annual Base Rent

	  	Monthly Installment of
Base Rent

	  	Monthly Rental Rate per
Rentable Square Foot

	 1-12 3/01-2/02
	  	$	128,412.00	  	$	10,701.00	  	$	3.00
	 3/02-2/03 13-24 2/13-3/8
	  	$	133,548.48	  	$	11,129.04	  	$	3.12
	 3/03-2/04 25-36
	  	$	138,890.40	  	$	11,574.20	  	$	3.2448
	 2/05 37-48
	  	$	144,446.40	  	$	12,037.20	  	$	3.3746
	 206 49-60
	  	$	150,224.88	  	$	12,518.74	  	$	3.5096
	 207 61-72
	  	$	156,230.40	  	$	13,019.20	  	$	3.6499

  

			
	 5.
	  	Base Year
(Article 4):	  	Calendar year 2001.
			
	 6.
	  	Tenant’s Share
(Article 4):	  	Approximately 1.56%.
			
	 7.
	  	 Permitted Use
 (Article
5):
	  	General office use and retail banking use only, all to the extent consistent with a first-class office building.
			
	 8.
	  	Security Deposit
(Article 21):	  	$13,019.20
			
	 9
	  	Address of Tenant
(Section 29.18):	  	First National Bank
			
	 	  	 	  	 401 “A” Street
 San Diego,
California 92101
 Attention: James L. Lemery, Chief Financial Officer
 (Prior to Lease Commencement Date)
  
 and
  
 First National Bank
 4225 Executive Square, Suite 150
 San Diego, California 92037
 Attention: James L. Lemery, Chief Financial Officer
 (After Lease Commencement Date)

			
	 10.
	  	Address of Landlord
(Section 29.18):	  	See Section 29.18 of the Lease.
			
	 11.
	  	Brokers
(Section 29.24) :	  	Burnham Real Estate Services representing Landlord and Goldman Ferguson Partners representing Tenant.
			
	 12.
	  	Parking Spaces
(Article 28):	  	Thirteen (13) spaces consisting of (i) ten (10) unreserved parking spaces, and (ii) five (5) reserved parking spaces.
			
	 13.
	  	Refurbishment Allowance (Section 8.6):	  	$48,630.00 (based on $15.00 per 3,242 usable square feet in the Premises).

  

 -2- 

 ARTICLE 1 
  
 PREMISES, BUILDING, PROJECT, AND COMMON AREAS 
  
 1.1 Premises, Building, Project and Common Areas. 
  
 1.1.1 The Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the premises, set forth in Section 2.2 of the Summary
(the “Premises”). The outline of the Premises is set forth in Exhibit A attached hereto and each floor or floors of the Premises has approximately the number of rentable square feet as set forth in Section 2.2 of the Summary. The
parties hereto agree that the lease of the Premises is upon and subject to the terms, covenants and conditions herein set forth, and Tenant covenants as a material part of the consideration for this Lease to keep and perform each and all of such
terms, covenants and conditions by it to be kept and performed and that this Lease is made upon the condition of such performance. The parties hereto hereby acknowledge that the purpose of Exhibit A is to show the approximate location of the
Premises in the “Building,” as that term is defined in Section 1.1.2, below, only, and such Exhibit is not meant to constitute an agreement, representation or warranty as to the construction of the Premises, the precise area thereof or the
specific location of the “Common Areas,” as that term is defined in Section 1.1.3, below, or the elements thereof or of the accessways to the Premises or the “Project,” as that term is defined in Section 1.1.2, below. Except as
specifically set forth in this Lease, Landlord shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Premises. Tenant acknowledges and agrees that Tenant is, as of the date hereof, occupying
(among other space in the Building) the Premises covered hereunder pursuant to that certain lease (“Existing Lease”) dated June 19, 1990 by and between Landlord’s predecessor-in-interest, Regents Park Executive Center Joint Venture
and Tenant. As such, Tenant acknowledges and agrees that it has had an opportunity to inspect the Premises, the Building and the Project, and finds the same in satisfactory condition and repair. Tenant also acknowledges that neither Landlord nor any
agent of Landlord has made any representation or warranty regarding the condition of the Premises, the Building or the Project or with respect to the suitability of any of the foregoing for the conduct of Tenant’s business, except as
specifically set forth in this Lease. The taking of possession of the Premises by Tenant shall conclusively establish that the Premises, the Building and the Project were at such time in good and sanitary order, condition and repair. 
  
 1.1.2 The Building and The Project. The Premises are a part of the
building set forth in Section 2.1 of the Summary (the “Building”). The Building is part of an office project known as “La Jolla Executive Tower.” The term “Project,” as used in this Lease, shall mean (i) the Building
and the Common Areas, (ii) the land (which is improved with landscaping, parking facilities and other improvements) upon which the Building and the Common Areas are located, and (iii) at Landlord’s discretion, any additional real property,
areas, land, buildings or other improvements added thereto outside of the Project. 
  
 1.1.3 Common Areas. Tenant shall have the non-exclusive right to use in common with other tenants in the Project, and subject to the rules and regulations referred to in Article 5 of this Lease, those portions
of the Project which are provided, from time to time, for use in common by Landlord, Tenant and any other tenants of the Project (such areas, together with such other portions of the Project designated by Landlord, in its discretion, including
certain areas designated for the exclusive use of certain tenants, or to be shared by Landlord and certain tenants, are collectively referred to herein as the “Common Areas”). The Common Areas shall consist of the “Project Common
Areas” and the “Building Common Areas.” The term “Project Common Areas,” as used in this Lease, shall mean the portion of the Project designated as such by Landlord. The term “Building Common Areas,” as used in
this Lease, shall mean the portions of the Common Areas located within the Building designated as such by Landlord. The manner in which the Common Areas are maintained and operated shall be at the sole discretion of Landlord and the use thereof
shall be subject to such rules, regulations and restrictions as Landlord may make from time to time. Landlord reserves the right to close temporarily, make alterations or additions to, or change the location of elements of the Project and the Common
Areas. 
  
 1.2 Rentable and Usable Square Feet. The parties
hereby stipulate that the Premises contain the rentable and usable square feet set forth in Section 2.2 of the Summary and such square footage amounts are not subject to adjustment or remeasurement by Landlord or Tenant. Accordingly, there shall be
no adjustment to the Base Rent or other amounts set forth in this Lease which are based upon the rentable and usable square feet of the Premises. 
  

 -3- 

 ARTICLE 2 
  
 LEASE TERM AND OPTION TERM 
  
 2.1 Lease Term. The terms and provisions of this Lease shall be effective as of the date of this Lease. The term of this Lease (the “Lease
Term”) shall be as set forth in Section 3.1 of the Summary, shall commence on the date set forth in Section 3.2 of the Summary (the “Lease Commencement Date”), and shall terminate on the date set forth in Section 3.3 of the Summary
(the “Lease Expiration Date”) unless this Lease is sooner Terminated as hereinafter provided. For purposes of this Lease, the term “Lease Year” shall mean each consecutive twelve (12) month period during the Lease Term; provided,
however, that the first Lease Year shall commence on the Lease Commencement Date and end on the last day of the eleventh month thereafter and the second and each succeeding Lease Year shall commence on the first day of the next calendar month; and
further provided that the last Lease Year shall end on the Lease Expiration Date. At any time during the Lease Term, Landlord may deliver to Tenant a notice in the form as set forth in Exhibit C, attached hereto, as a confirmation only of the
information set forth therein, which Tenant shall execute and return to Landlord within five (5) days of receipt thereof. 
  
 2.2 Option Term. 
  
 2.2.1 Option Right. Landlord hereby grants the Tenant one (1) option to extend the Lease Term for a period of five (5) years (“Option
Term”), which option shall be exercisable only by written notice delivered by Tenant to Landlord as provided below, provided that, as of the date of delivery of such notice, Tenant is not in monetary default under this Lease and Tenant has not
previously been in monetary default under this Lease more than once. Upon the proper exercise of such option to extend (and provided that, as of the end of the initial Lease Term, Tenant is not in monetary default under this Lease and Tenant has not
previously been in monetary default under this Lease more than once), the Lease Term, as it applies to the Premises, shall be extended for a period of five (5) years. The right contained in this Section 2.2 shall be personal to the original Tenant
executing this Lease (“Original Tenant”) and any Affiliate (as defined in Section 14.8 hereof) of the Original Tenant’s entire interest in this Lease and may only be exercised by the Original Tenant or such Affiliate (and not any
assignee, sublessee or other transferee of the Original Tenant’s interest in this Lease) if the Original Tenant or such Affiliate occupies the entire Premises. 
  
 2.2.2 Option Rent. The rent payable by Tenant during the Option Term (the “Option Rent”) shall be equal to
the Market Rent (defined below) but in no event shall the Option Rent be less than Tenant is paying under the Lease in the month immediately preceding the Option Term for monthly Base Rent, including all escalations, Direct Expenses, additional rent
and other charges. The term “Market Rent” shall mean the rent (including additional rent and considering any “base year” or “expense stop” applicable thereto), including all escalations, at which renewal tenants, as of
the commencement of the Option Term, are leasing non-sublease, non-encumbered, non-equity space comparable in size, location and quality to the Premises in renewal transactions for a comparable term, which comparable space is located in the Project
or if (in Landlord’s reasonable discretion) not enough comparable renewal transactions exist in the Project then comparable renewal transactions in comparable first-class office buildings in the vicinity of the Project, in each case taking into
consideration to what extent Tenant must provide Landlord with financial security for Tenant’s obligations during the Term (with such determination being made by reviewing the extent of financial security then generally being provided by such
tenants with comparable financial condition and credit history to the then existing financial condition and credit history of Tenant (with appropriate adjustments to account for differences in the then-existing financial condition of Tenant and such
other tenants)), and taking into account, and deducting the value of, the existing improvements in the Premises, such value to be based upon the age, quality and layout of the improvements and the extent to which the existing improvements in the
Premises, can be utilized by Tenant with consideration given to the fact that the improvements existing in the Premises are specifically suitable to Tenant. 
  
 2.2.3 Exercise of Option. The option contained in this Section 2.2 shall be exercised by Tenant, if at all, only in the following manner: (i)
Tenant shall deliver written notice (“Interest Notice”) to Landlord not more than twelve (12) months nor less than nine (9) months prior to the expiration of the initial Lease Term stating that Tenant is interested in exercising its
option; (ii) Landlord, within fifteen (15) business days after receipt of Tenant’s notice, shall deliver notice (the “Option Rent Notice”) to Tenant setting forth the Option Rent; and (iii) if Tenant wishes to exercise such option.
Tenant shall, on or before the date occurring five (5) days after Tenant’s 

  

 -4- 

 
receipt of the Option Rent Notice, exercise the option by delivering written notice thereof to Landlord (“Tenant’s Acceptance”) and upon, and
concurrent with such exercise, Tenant may, at its option, object to the Option Rent contained in the Option Rent Notice. Tenant’s failure to deliver the Interest Notice or Tenant’s Acceptance on or before the dates specified above shall be
deemed to constitute Tenant’s election not to exercise the option. If Tenant timely and properly exercises its option, the Lease Term shall be extended for the applicable Option Term upon all of the terms and conditions set forth in this Lease,
except that the rent for the applicable Option Term shall be as indicated in the Option Rent Notice with respect thereto unless Tenant, concurrently with Tenant’s Acceptance, objects to the Option Rent contained in the Option Rent Notice, in
which case the parties shall follow the procedure and the Option Rent shall be determined, as set forth in Section 2.2.4 below. 
  
 2.2.4 Determination of Market Rent. If Tenant timely objects to the Market Rent in Tenant’s Acceptance, Landlord and Tenant shall attempt to
agree upon the Market Rent using their best good-faith efforts. If Landlord and Tenant fail to reach agreement within twenty-one (21) days following Tenant’s Acceptance (“Outside Agreement Date”), then each party shall make a separate
determination of the Market Rent which shall be submitted to each other and to arbitration in accordance with the following items (i) through (vii): 
  
 (i) Landlord and Tenant shall each appoint, within ten (10) days of the Outside Agreement Date, one arbitrator who shall by profession be a current real
estate broker or appraiser of commercial high-rise properties in the immediate vicinity of the Project, and who has been active in such field over the last five (5) years. The determination of the arbitrators shall be limited solely to the issue of
whether Landlord’s or Tenant’s submitted Market Rent is the closest to the actual Market Rent as determined by the arbitrators, taking into account the requirements of Section 2.2.2, above. 
  
 (ii) The two arbitrators so appointed shall within five (5) business days of
the date of the appointment of the last appointed arbitrator agree upon and appoint a third arbitrator who shall be qualified under the same criteria set forth hereinabove for qualification of the initial two arbitrators. 
  
 (iii) The three arbitrators shall within fifteen (15) days of the
appointment of the third arbitrator reach a decision as to whether the parties shall use Landlord’s or Tenant’s submitted Market Rent, and shall notify Landlord and Tenant thereof. 
  
 (iv) The decision of the majority of the three arbitrators shall be binding
upon Landlord and Tenant. 
  
 (v) If either Landlord or Tenant
fails to appoint an arbitrator within ten (10) days after the applicable Outside Agreement Date, the arbitrator appointed by one of them shall reach a decision, notify Landlord and Tenant thereof, and such arbitrator’s decision shall be binding
upon Landlord and Tenant. 
  
 (vi) If the two arbitrators fail to
agree upon and appoint a third arbitrator, or both parties fail to appoint an arbitrator, then the appointment of the third arbitrator or any arbitrator shall be dismissed and the matter to be decided shall be forthwith submitted to arbitration
under the commercial rules of the American Arbitration Association, but subject to the instruction set forth in this Section 2.2.4. 
  
 (vii) The cost of arbitration shall be paid by Landlord and Tenant equally. 
  
 ARTICLE 3 
  
 BASE RENT 
  
 Tenant shall pay, without prior notice or demand, to Landlord or Landlord’s agent at the Payment Address set forth in Section 29.18 below, or, at
Landlord’s option, at such other place as Landlord may from time to time designate in writing, by a check for currency which, at the time of payment, is legal tender for private or public debts in the United States of America, base rent
(“Base Rent”) as set forth in Section 4 of the Summary, payable in equal monthly installments as set forth in Section 4 of the Summary in advance on or before the first day of each and every calendar month during the Lease Term (commencing
on the Lease Commencement Date), without any 

  

 -5- 

 
setoff or deduction whatsoever. If any Rent payment date (including the Lease Commencement Date) falls on a day of the month other than the first day of such
month or if any payment of Rent is for a period which is shorter than one month, the Rent for any fractional month shall accrue on a daily basis for the period from the date such payment is due to the end of such calendar month or to the end of the
Lease Term at a rate per day which is equal to 1/30 of the applicable monthly Rent. All other payments or adjustments required to be made under the terms of this Lease that require proration on a time basis shall be prorated on the same basis.

  
 ARTICLE 4 
  
 ADDITIONAL RENT 
  
 4.1 General Terms. In addition to paying the Base Rent specified in Article 3 of this Lease, Tenant shall pay
“Tenant’s Share” of the annual “Direct Expenses,” as those terms are defined in Sections 4.2.6 and 4.2.2 of this Lease, respectively, which are in excess of the amount of Direct Expenses applicable to the “Base
Year,” as that term is defined in Section 4.2.1, below; provided, however, that in no event shall any decrease in Direct Expenses for any Expense Year below Direct Expenses for the Base Year entitle Tenant to any decrease in Base Rent or any
credit against sums due under this Lease. Such payments by Tenant, together with any and all other amounts payable by Tenant to Landlord pursuant to the terms of this Lease, are hereinafter collectively referred to as the “Additional
Rent”, and the Base Rent and the Additional Rent are herein collectively referred to as “Rent.” All amounts due under this Article 4 as Additional Rent shall be payable for the same periods and in the same manner as the Base Rent.
Without limitation on other obligations of Tenant which survive the expiration of the Lease Term, the obligations of Tenant to pay the Additional Rent provided for in this Article 4 shall survive the expiration of the Lease Term. 
  
 4.2 Definitions of Key Terms Relating to Additional Rent. As used in
this Article 4, the following terms shall have the meanings hereinafter set forth: 
  
 4.2.1 “Base Year” shall mean the period set forth in Section 5 of the Summary. 
  
 4.2.2 “Direct Expenses” shall mean “Operating Expenses” and “Tax Expenses.” 
  
 4.2.3 “Expense Year” shall mean each calendar year in which any
portion of the Lease Term falls, through and including the calendar year in which the Lease Term expires, provided that Landlord, upon notice to Tenant, may change the Expense Year from time to time to any other twelve (12) consecutive month period,
and, in the event of any such change, Tenant’s Share of Direct Expenses shall be equitably adjusted for any Expense Year involved in any such change. 
  
 4.2.4 “Operating Expenses” shall mean all expenses, costs and amounts of every kind and nature which Landlord pays or accrues during any Expense
Year because of or in connection with the ownership, management, maintenance, security, repair, replacement, restoration or operation of the Project, or any portion thereof. Without limiting the generality of the foregoing, Operating Expenses shall
specifically include any and all of the following: (i) the cost of supplying all utilities, the cost of operating, repairing, maintaining, and renovating the utility, telephone, mechanical, sanitary, storm drainage, and elevator systems, and the
cost of maintenance and service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of contesting any governmental enactments which may affect Operating Expenses, and the costs incurred in
connection with a transportation system management program or similar program; (iii) the cost of all insurance carried by Landlord in connection with the Project; (iv) the cost of landscaping, relamping, and all supplies, tools, equipment and
materials used in the operation, repair and maintenance of the Project, or any portion thereof; (v) costs incurred in connection with the parking areas servicing the Project; (vi) fees and other costs, including management fees, consulting fees,
legal fees and accounting fees, of all contractors and consultants in connection with the management, operation, maintenance and repair of the Project; (vii) payments under any equipment rental agreements and the fair rental value of any management
office space; (viii) wages, salaries and other compensation and benefits, including taxes levied thereon, of all persons engaged in the operation, maintenance and security of the Project; (ix) costs under any instrument pertaining to the sharing of
costs by the Project; (x) operation, repair, maintenance and replacement of all systems and equipment and components thereof of the Building; (xi) the cost of janitorial, alarm, security and other services, replacement of wall and floor coverings,
ceiling tiles and fixtures in 

  

 -6- 

 
common areas, maintenance and replacement of curbs and walkways, repair to roofs and re-roofing; (xii) amortization (including interest on the unamortized
cost) of the cost of acquiring or the rental expense of personal property used in the maintenance, operation and repair of the Project, or any portion thereof; (xiii) the cost of capital improvements or other costs incurred in connection with the
Project (A) which are intended to effect economies in the operation or maintenance of the Project, or any portion thereof, (B) that are required to comply with present or anticipated conservation programs, (C) which are replacements or modifications
of nonstructural items located in the Common Areas required to keep the Common Areas in good order or condition, or (D) that are required under any governmental law or regulation; provided, however, that any capital expenditure shall be amortized
with interest over its useful life as Landlord shall reasonably determine; (xiv) costs, fees, charges or assessments imposed by, or resulting from any mandate imposed on Landlord by, any federal, state or local government for fire and police
protection, trash removal, community services, or other services which do not constitute “Tax Expenses” as that term is defined in Section 4.2.5, below; and (xv) payments under any easement, license, operating agreement, declaration,
restrictive covenant, or instrument pertaining to the sharing of costs by the Building. 
  
 If Landlord is not furnishing any particular work or service (the cost of which, if performed by Landlord, would be included in Operating Expenses) to a tenant who has undertaken to perform such work or service in
lieu of the performance thereof by Landlord, Operating Expenses shall be deemed to be increased by an amount equal to the additional Operating Expenses which would reasonably have been incurred during such period by Landlord if it had at its own
expense furnished such work or service to such tenant. If the Project is not at least ninety-five percent (95%) occupied during all or a portion of the Base Year or any Expense Year, Landlord may elect to make an appropriate adjustment to the
components of Operating Expenses for such year to determine the amount of Operating Expenses that would have been incurred had the Project been ninety-five percent (95%) occupied; and the amount so determined shall be deemed to have been the amount
of Operating Expenses for such year. Operating Expenses for the Base Year shall not include market-wide labor-rate increases due to extraordinary circumstances, including, but not limited to, boycotts and strikes, and utility rate increases due to
extraordinary circumstances including, but not limited to, conservation surcharges, boycotts, embargoes or other shortages, or amortized costs relating to capital improvements. The component of Operating Expenses related to electrical costs for the
Base Year shall be referred to as the “Base Year Electrical Costs,” and the component of Operating Expenses related to electrical costs for each calendar year after the Base Year shall be referred to as the “Subsequent Year Electrical
Costs.” To the extent that Landlord obtains a reduction in electrical costs such that the Subsequent Year Electrical Costs for the first calendar year or the second calendar year to occur after the Base Year are less than Base Year Electrical
Costs, then the Base Year Electrical Costs shall be deemed to be the lesser of Subsequent Year Electrical Costs for the first calendar year or the second calendar year to occur after the Base Year. 
  
 4.2.5 Taxes. 
  
 4.2.5.1 “Tax Expenses” shall mean all federal, state, county, or
local governmental or municipal taxes, fees, charges or other impositions of every kind and nature, whether general, special, ordinary or extraordinary, (including, without limitation, real estate taxes, general and special assessments, transit
taxes, leasehold taxes or taxes based upon the receipt of rent, including gross receipts or sales taxes applicable to the receipt of rent, unless required to be paid by Tenant, personal property taxes imposed upon the fixtures, machinery, equipment,
apparatus, systems and equipment, appurtenances, furniture and other personal property used in connection with the Project, or any portion thereof), which shall be paid or accrued during any Expense Year (without regard to any different fiscal year
used by such governmental or municipal authority) because of or in connection with the ownership, leasing and operation of the Project, or any portion thereof. 
  

4.2.5.2 Tax Expenses shall include, without limitation: (i) Any tax on the rent, right to rent or other income from the Project, or any portion
thereof, or as against the business of leasing the Project, or any portion thereof; (ii) Any assessment, tax, fee, levy or charge in addition to, or in substitution, partially or totally, of any assessment, tax, fee, levy or charge previously
included within the definition of real property tax, it being acknowledged by Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California in the June 1978 election (“Proposition 13”) and that assessments,
taxes, fees, levies and charges may be imposed by governmental agencies for such services as fire protection, street, sidewalk and road maintenance, refuse removal and for other governmental services formerly provided without charge to property
owners or occupants, and, in further recognition of the decrease in the level and quality of governmental services and amenities as a result of Proposition 13, Tax Expenses shall also include any governmental or private assessments or the
Project’s 

  

 -7- 

 
contribution towards a governmental or private cost-sharing agreement for the purpose of augmenting or improving the quality of services and amenities
normally provided by governmental agencies; (iii) Any assessment, tax, fee, levy, or charge allocable to or measured by the area of the Premises or the Rent payable hereunder, including, without limitation, any business or gross income tax or excise
tax with respect to the receipt of such rent, or upon or with respect to the possession, leasing, operating, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises, or any portion thereof; and (iv) Any assessment,
tax, fee, levy or charge, upon this transaction or any document to which Tenant is a party, creating or transferring an interest or an estate in the Premises. 
  

4.2.5.3 Any costs and expenses (including, without limitation, reasonable attorneys’ fees) incurred in attempting to protest, reduce or minimize
Tax Expenses shall be included in Tax Expenses in the Expense Year such expenses are paid. Except as set forth in Section 4.2.5.4, below, refunds of Tax Expenses shall be credited against Tax Expenses and refunded to Tenant regardless of when
received, based on the Expense Year to which the refund is applicable, provided that in no event shall the amount to be refunded to Tenant for any such Expense Year exceed the total amount paid by Tenant as Tax Expenses under this Article 4 for such
Expense Year. If Tax Expenses for any period during the Lease Term or any extension thereof are increased after payment thereof for any reason, including, without limitation, error or reassessment by applicable governmental or municipal authorities,
Tenant shall pay Landlord upon demand Tenant’s Share of any such increased Tax Expenses included by Landlord as Tax Expenses pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained in this Section 4.2.5 (except
as set forth in Section 4.2.5.1. above), there shall be excluded from Tax Expenses (i) all excess profits taxes, franchise taxes, gift taxes, capital stock taxes, inheritance and succession taxes, estate taxes, federal and state income taxes, and
other taxes to the extent applicable to Landlord’s general or net income (as opposed to rents, receipts or income attributable to operations at the Project), (ii) any items included as Operating Expenses, and (iii) any items paid by Tenant
under Section 4.5 of this Lease. 
  
 4.2.5.4. Notwithstanding
anything to the contrary set forth in this Lease, the amount of Tax Expenses for the Base Year and any Expense Year shall be calculated without taking into account any decreases in real estate taxes obtained in connection with Proposition 8, and,
therefore, the Tax Expenses in the Base Year and/or an Expense Year may be greater than those actually incurred by Landlord, but shall, nonetheless, be the Tax Expenses due under this Lease; provided that (i) any costs and expenses incurred by
Landlord in securing any Proposition 8 reduction shall not be included in Direct Expenses for purposes of this Lease, and (ii) tax refunds under Proposition 8 shall not be deducted from Tax Expenses, but rather shall be the sole property of
Landlord. Landlord and Tenant acknowledge that this Section 4.2.5.4 is not intended to in any way affect (A) the inclusion in Tax Expenses of the statutory two percent (2.0%) annual increase in Tax Expenses (as such statutory increase may be
modified by subsequent legislation), or (B) the inclusion or exclusion of Tax Expenses pursuant to the terms of Proposition 13, which shall be governed pursuant to the terms of Sections 4.2.5.1 through 4.2.5.3, above. 
  
 4.2.6 “Tenant’s Share” shall mean the percentage set forth in
Section 6 of the Summary. 
  
 4.3 Intentionally Omitted.

  
 4.4 Calculation and Payment of Additional Rent. If for
any Expense Year ending or commencing within the Lease Term. Tenant’s Share of Direct Expenses for such Expense Year exceeds Tenant’s Share of Direct Expenses applicable to the Base Year, then Tenant shall pay to Landlord, in the manner
set forth in Section 4.4.1, below, and as Additional Rent, an amount equal to the excess (the “Excess”). 
  
 4.4.1 Statement of Actual Direct Expenses and Payment by Tenant. Landlord shall endeavor to give to Tenant following the end of each Expense Year,
a statement (the “Statement”) which shall state the Direct Expenses incurred or accrued for such preceding Expense Year, and which shall indicate the amount of the Excess. Upon receipt of the Statement for each Expense Year commencing or
ending during the Lease Term, if an Excess is present, Tenant shall pay, with its next installment of Base Rent due, the full amount of the Excess for such Expense Year, less the amounts, if any, paid during such Expense Year as “Estimated
Excess,” as that term is defined in Section 4.4.2 below. The failure of Landlord to timely furnish the Statement for any Expense Year shall not prejudice Landlord or Tenant from enforcing its rights under this Article 4. In addition, Landlord
shall have the right to modify any Statement after such Statement has been delivered to Tenant to correct any errors or reflect any new information received by Landlord with respect to the Direct Expenses shown on such Statement by delivering

  

 -8- 

 
to Tenant a revised statement (the “Revised Statement”), and if such Revised Statement shows that Landlord understated the Excess, Tenant shall
pay, with its next installment of Base Rent due, the understated amount of the Excess. Even though the Lease Term has expired and Tenant has vacated the Premises, when the final determination is made of Tenant’s share of Direct Expenses for the
Expense Year in which this Lease terminates, if an Excess if present, Tenant shall immediately pay to Landlord such amount. The provisions of this Section 4.4.1 shall survive the expiration or earlier termination of the Lease Term. 
  
 4.4.2 Statement of Estimated Direct Expenses. In addition, Landlord
shall endeavor to give Tenant a yearly expense estimate statement (the “Estimate Statement”) which shall set forth Landlord’s reasonable estimate (the “Estimate”) of what the total amount of Direct Expenses for the
then-current Expense Year shall be and the estimated excess (the “Estimated Excess”) as calculated by comparing the Direct Expenses for such Expense Year, which shall be based upon the Estimate, to the amount of Direct Expenses for the
Base Year. The failure of Landlord to timely furnish the Estimate Statement for any Expense Year Shall not preclude Landlord from enforcing its rights to collect any Estimated Excess under this Article 4, nor shall Landlord be prohibited from
revising any Estimate Statement or Estimated Excess theretofore delivered to the extent necessary. Thereafter, Tenant shall pay, with its next installment of Base Rent due, a fraction of the Estimated Excess for the then-current Expense Year
(reduced by any amounts paid pursuant to the next to last sentence of this Section 4.4.2). Such fraction shall have as its numerator the number of months which have elapsed in such current Expense Year, including the month of such payment, and
twelve (12) as its denominator. Until a new Estimate Statement is furnished (which Landlord shall have the right to deliver to Tenant at any time), Tenant shall pay monthly, with the monthly Base Rent installments, an amount equal to one-twelfth
(1/12) of the total Estimated Excess set forth in the previous Estimate Statement delivered by Landlord to Tenant. 
  
 4.5 Taxes and Other Charges for Which Tenant Is Directly Responsible. 
  
 4.5.1 Tenant shall be liable for and shall pay ten (10) days before delinquency, taxes levied against Tenant’s
equipment, furniture, fixtures and any other personal property located in or about the Premises. If any such taxes on Tenant’s equipment, furniture, fixtures and any other personal property are levied against Landlord or Landlord’s
property or if the assessed value of Landlord’s property is increased by the inclusion therein of a value placed upon such equipment, furniture, fixtures or any other personal property and if Landlord pays the taxes based upon such increased
assessment, which Landlord shall have the right to do regardless of the validity thereof but only under proper protest if requested by Tenant, Tenant shall upon demand repay to Landlord the taxes so levied against Landlord or the proportion of such
taxes resulting from such increase in the assessment, as the case may be. 
  
 4.5.2 If the tenant improvements in the Premises, whether installed and/or paid for by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, are assessed for real property
tax purposes at a valuation higher than the valuation at which tenant improvements conforming to Landlord’s “building standard” in other space in the Building are assessed, then the Tax Expenses levied against Landlord or the property
by reason of such excess assessed valuation shall be deemed to be taxes levied against personal property of Tenant and shall be governed by the provisions of Section 4.5.1, above. 
  
 4.5.3 Notwithstanding any contrary provision herein, Tenant shall pay prior to delinquency any (i) rent tax or sales tax,
service tax, transfer tax or value added tax, or any other applicable tax on the rent or services herein or otherwise respecting this Lease, (ii) taxes assessed upon or with respect to the possession, leasing, operation, management, maintenance,
alteration, repair, use or occupancy by Tenant or the Premises or any portion of the Project, including the Project parking facility; or (iii) taxes assessed upon this transaction or any document to which Tenant is a party creating or transferring
an interest or an estate in the Premises. 
  
 ARTICLE 5 

 
 USE OF PREMISES 
  
 5.1 Permitted Use. Tenant shall use the Premises solely for the
Permitted Use set forth in Section 7 of the Summary and Tenant shall not use or permit the Premises or the Project to be used for any other purpose or purposes whatsoever without the prior written consent of Landlord, which may be withheld in
Landlord’s sole discretion. 
  

 -9- 

 5.2 Prohibited Uses. The uses prohibited under this Lease shall include, without limitation, use
of the Premises or a portion thereof for (i) offices of any agency or bureau of the United States or any state or political subdivision thereof; (ii) offices or agencies of any foreign governmental or political subdivision thereof; (iii) offices of
any health care professionals or service organization; (iv) schools or other training facilities which are not ancillary to corporate, executive or professional office use; (v) retail (excluding retail banking ) or restaurant uses; or (vi)
communications firms such as radio and/or television stations. Tenant shall not allow occupancy density of use of the Premises which is greater than the average density of the other tenants of the Building. Tenant further covenants and agrees that
Tenant shall not use, or suffer or permit any person or persons to use, the Premises or any part thereof for any use or purpose contrary to the provisions of the Rules and Regulations set forth in Exhibit D. attached hereto, or in violation
of the laws of the United States of America, the State of California, or the ordinances, regulations or requirements of the local municipal or country governing body or other lawful authorities having jurisdiction over the Project including, without
limitation, any such laws, ordinances, regulations or requirements relating to hazardous materials or substances, as those terms are defined by applicable laws now or hereafter in effect. Tenant shall not do or permit anything to be done in or about
the Premises which will in any way damage the reputation of the Project or obstruct or interfere with the rights of other tenants or occupants of the Building, or injure or annoy them or use or allow the Premises to be used for any improper,
unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in. on or about the Premises. Tenant shall comply with all recorded covenants, conditions, and restrictions now or hereafter affecting the Project.

  
 ARTICLE 6 
  
 SERVICES AND UTILITIES 
  
 6.1 Standard Tenant Services. Landlord shall provide the following
services on all days (unless otherwise stated below) during the Lease Term. 
  
 6.1.1 Subject to limitations imposed by all governmental rules, regulations and guidelines applicable thereto, Landlord shall provide heating and air conditioning (“HVAC”) when necessary for normal comfort
for normal office use in the Premises from 7:00 A.M. to 6:00 P.M. Monday through Friday, and on Saturdays from 8:00 A.M. to 1:00 P.M. (collectively, the “Building Hours”), except for the date of observation of New Year’s Day, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day and, at Landlord’s discretion, other locally or nationally recognized holidays (collectively, the “Holidays”). 
  
 6.1.2 Landlord shall provide adequate electrical wiring and facilities for
connection to Tenant’s lighting fixtures and incidental use equipment, provided that (i) the connected electrical load of the incidental use equipment does not exceed an average of two and one-half (2 1/2) watts per usable square foot of the Premises during the Building Hours on a monthly basis, and the electricity so
furnished for incidental use equipment will be at a nominal one hundred twenty (120) volts and no electrical circuit for the supply of such incidental use equipment will require a current capacity exceeding twenty (20) amperes, and (ii) the
connected electrical load of Tenant’s lighting fixtures does not exceed an average of one and one-half (1 1/2) watts per usable square foot of the Premises during the Building Hours on a monthly basis. and the electricity so furnished for Tenant’s lighting will be at a nominal one hundred twenty (120) volts. which electrical usage
shall be subject to applicable laws and regulations, including Title 24. Tenant will design Tenant’s electrical system serving any equipment producing nonlinear electrical loads to accommodate such nonlinear electrical loads, including, but not
limited to, oversizing neutral conductors, derating transformers and/or providing power-line filters. Engineering plans shall include a calculation of Tenant’s fully connected electrical design load with and without demand factors and shall
indicate the number of watts of unmetered and submetered loads. Tenant shall bear the cost of replacement of lamps, starters and ballasts for non-Building standard lighting fixtures within the Premises. 
  
 6.1.3 Landlord shall provide city water from the regular Building outlets for
drinking, lavatory and toilet purposes in the Building Common Areas. 
  

 -10- 

 6.1.4 Landlord shall provide janitorial services to the Premises, except the date of observation of the
Holidays, in and about the Premises and window washing services in a manner consistent with other comparable buildings in the vicinity of the Building. 
  
 6.1.5 Landlord shall provide nonexclusive, non-attended automatic passenger elevator service during the Building Hours and, shall have one elevator
available at all other times, and shall provide nonexclusive, non-attended automatic passenger escalator service during Building Hours only. 
  
 6.1.6 Landlord shall provide nonexclusive freight elevator service subject to scheduling by Landlord. 
  
 Tenant shall cooperate fully with Landlord at all times and abide by all
regulations and requirements that Landlord may reasonably prescribe for the proper functioning and protection of the HVAC, electrical, mechanical and plumbing systems. 
  
 6.2 Overstandard Tenant Use. Tenant shall not, without Landlord’s prior written consent, use heat-generating
machines, machines other than normal fractional horsepower office machines, or equipment or lighting other than Building standard lights in the Premises, which may affect the temperature otherwise maintained by the air conditioning system or
increase the water normally furnished for the Premises by Landlord pursuant to the terms of Section 6.1 of this Lease. If such consent is given, Landlord shall have the right to install supplementary air conditioning units or other facilities in the
Premises, including supplementary or additional metering devices, and the cost thereof, including the cost of installation, operation and maintenance, increased wear and tear on existing equipment and other similar charges, shall be paid by Tenant
to Landlord upon billing by Landlord. If Tenant uses water, electricity, heat or air conditioning in excess of that supplied by Landlord pursuant to Section 6.1 of this Lease, Tenant shall pay to Landlord, upon billing, the cost of such excess
consumption, the cost of the installation, operation, and maintenance of equipment which is installed in order to supply such excess consumption, and the cost of the increased wear and tear on existing equipment caused by such excess consumption;
and Landlord may install devices to separately meter any increased use and in such event Tenant shall pay the increased cost directly to Landlord, on demand, at the rates charged by the public utility company furnishing the same, including the cost
of such additional metering devices, plus Landlord’s reasonable costs incurred in connection with Landlord’s administration of such additional usage. As of the date of this Lease, the hourly charge (on a full-floor basis) for after-hours
air-conditioning usage is Thirty-Five Dollars ($35.00) per hour and the hourly charge (on a full floor basis) for air ventilation is Twenty-Five Dollars ($25.00) per hour, which initial hourly charges are, from time to time throughout the Lease
Term, subject to adjustment by Landlord to reflect Landlord’s prevailing rate for such after-hours air-conditioning and air ventilation. Tenant’s use of electricity shall never exceed the capacity of the feeders to the Project or the
risers or wiring installation, and subject to the terms of Section 29.32, below, Tenant shall not install or use or permit the installation or use of any computer or electronic data processing equipment in the Premises (other than personal computer
and local area networks), without the prior written consent of Landlord. If Tenant desires to use heat, ventilation or air conditioning during hours other than those for which Landlord is obligated to supply such utilities pursuant to the terms of
Section 6.1 of this Lease, Tenant shall give Landlord such prior notice, if any, as Landlord shall from time to time establish as appropriate, of Tenant’s desired use in order to supply such utilities, and Landlord shall endeavor to supply such
utilities to Tenant at such hourly cost to Tenant (which shall be treated as Additional Rent) as Landlord shall from time to time establish. 
  
 6.3 Interruption of Use. Tenant agrees that Landlord shall not be liable for damages, by abatement of Rent or otherwise, for failure to furnish or
delay in furnishing any service (including telephone and telecommunication services), or for any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by breakage, repairs,
replacements, or improvements, by any strike, lockout or other labor trouble, by inability to secure electricity, gas, water, or other fuel at the Building or Project after reasonable effort to do so, by any riot or other dangerous condition,
emergency, accident or casualty whatsoever, by act or default of Tenant or other parties, or by any other cause; and such failures or delays or diminution shall never be deemed to constitute an eviction or disturbance of Tenant’s use and
possession of the Premises or relieve Tenant from paying Rent or performing any of its obligations under this Lease. Furthermore, Landlord shall not be liable under any circumstances for a loss of, or injury to, property or for injury to, or
interference with, Tenant’s business, including, without limitation, loss of profits, however occurring, through or in connection with or incidental to a failure to furnish any of the services or utilities as set forth in this Article 6.

  

 -11- 

 
Landlord may comply with voluntary controls or guidelines promulgated by any governmental entity relating to the use or conservation of energy, water, gas,
light or electricity or the reduction of automobile or other emissions without creating any liability of Landlord to Tenant under this Lease, provided that the Premises are not thereby rendered untenantable. 
  
 ARTICLE 7 
  
 REPAIRS 
  
 Tenant shall, at Tenant’s own expense, pursuant to the terms of this Lease, including without limitation Article 8 hereof, keep the Premises,
including all improvements, fixtures and furnishings therein, and the floor or floors of the Building on which the Premises are located, in good order, repair and condition at all times during the Lease Term. In addition, Tenant shall, at
Tenant’s own expense, but under the supervision and subject to the prior approval of Landlord, and within any reasonable period of time specified by Landlord, pursuant to the terms of this Lease, including without limitation Article 8 hereof,
promptly and adequately repair all damage to the Premises and replace or repair all damaged or broken, or worn fixtures and appurtenances, except for damage caused by ordinary wear and tear or beyond the reasonable control of Tenant; provided
however, that, at Landlord’s option, or if Tenant fails to make such repairs, Landlord may, but need not, make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including a percentage of the cost thereof (to be
uniformly established for the Building and/or the Project) sufficient to reimburse Landlord for all overhead, general conditions, fees and other costs or expenses arising from Landlord’s involvement with such repairs and replacements forthwith
upon being billed for same. Landlord may, but shall not be required to, enter the Premises at all reasonable times to make such repairs, alterations, improvements or additions to the Premises or to the Project or to any equipment located in the
Project as Landlord shall desire or deem necessary or as Landlord may be required to do by governmental or quasi-governmental authority or court order or decree. Tenant hereby waives any and all rights under and benefits of subsection 1 of Section
1932 and Sections 1941 and 1942 of the California Civil Code or under any similar law, statute, or ordinance now or hereafter in effect. 
  
 ARTICLE 8 
  
 ADDITIONS AND ALTERATIONS 
  
 8.1 Landlord’s Consent to Alterations. Tenant may not make any improvements, alterations, additions or changes to the Premises or any mechanical, plumbing or HVAC facilities or systems pertaining to the
Premises ( collectively, the “Alterations”) without first procuring the prior written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less than thirty (30) days prior to the commencement thereof, and
which consent shall not be unreasonably withheld by Landlord, provided it shall be deemed reasonable for Landlord to withhold its consent to any Alteration which adversely affects the structural portions or the systems or equipment of the Building
or is visible from the exterior of the Building. 
  
 8.2 Manner
of Construction. Landlord may impose, as a condition of its consent to any and all Alterations or repairs of the Premises or about the Premises, such requirements as Landlord in its sole discretion may deem desirable, including, but not limited
to, the requirement that Tenant utilize for such purposes only contractors, subcontractors, materials, mechanics and materialmen selected by Tenant from a list provided and approved by Landlord, the requirement that upon Landlord’s request,
Tenant shall, at Tenant’s expense, remove such Alterations upon the expiration or any early termination of the Lease Term. If such Alterations will involve the use of or disturb hazardous materials or substances existing in the Premises, Tenant
shall comply with Landlord’s rules and regulations concerning such hazardous materials or substances. Tenant shall construct such Alterations and perform such repairs in a good and workmanlike manner, in conformance with any and all applicable
federal, state, county or municipal laws, rules and regulations and pursuant to a valid building permit, issued by the City of San Diego, all in conformance with Landlord’s construction rules and regulations. In the event Tenant performs any
Alterations in the Premises which require or give rise to governmentally required changes to the “Base Building,” as that term is defined below, then Landlord shall, at Tenant’s expense, make such changes to the Base Building. The
“Base Building” shall include the structural portions of the Building, the systems and equipment located in the internal core of the Building, and the Common Areas, including the public restrooms and elevator lobby on the floor or floors
of the Building on which the Premises are located. In performing the work of any such Alterations, Tenant 

  

 -12- 

 
shall have the work performed in such manner so as not to obstruct access to the Project or any portion thereof, by any other tenant of the Project, and so
as not to obstruct the business of Landlord or other tenants in the Project. Tenant shall not use (and upon notice from Landlord shall cease using) contractors, services, workmen, labor, materials or equipment that, in Landlord’s reasonable
judgment, would disturb labor harmony with the workforce or trades engaged in performing other work, labor or services in or about the Building or the Common Areas. In addition to Tenant’s obligations under Article 9 of this Lease, upon
completion of any Alterations, Tenant agrees to cause a Notice of Completion to be recorded in the office of the Recorder of the County of San Diego in accordance with Section 3093 of the Civil Code of the State of California or any successor
statute, and Tenant shall deliver to the Project management office a reproducible copy of the “as built” drawings of the Alterations as well as all permits, approvals and other documents issued by any governmental agency in connection with
the Alterations. 
  
 8.3 Payment for Improvements. If
payment is made directly to contractors, Tenant shall comply with Landlord’s requirements for final lien releases and waivers in connection with Tenant’s payment for work to contractors. 
  
 8.4 Construction Insurance. In addition to the requirements of Article
10 of this Lease, in the event that Tenant makes any Alterations, prior to the commencement of such Alterations, Tenant shall provide Landlord with evidence that Tenant or its contractors carries “Builder’s All Risk” insurance in an
amount approved by Landlord covering the construction of such Alterations, and such other insurance as Landlord may require, it being understood and agreed that all of such Alterations shall be insured by Tenant pursuant to Article 10 of this Lease
immediately upon completion thereof. In addition, Landlord may, in its discretion, require Tenant to obtain a lien and completion bond or some alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien-free
completion of such Alterations and naming Landlord as a co-obligee. 
  
 8.5 Landlord’s Property. All Alterations, improvements, fixtures, equipment and/or appurtenances which may be installed or placed in or about the Premises, from time to time, shall be at the sole cost of Tenant and shall be and
become the property of Landlord, except that Tenant may remove any Alterations, improvements, fixtures and/or equipment which Tenant can substantiate to Landlord have not been paid for with any Tenant improvement allowance funds provided to Tenant
by Landlord, provided Tenant repairs any damage to the Premises and Building caused by such removal and returns the affected portion of the Premises to a building standard tenant improved condition as determined by Landlord. Furthermore, Landlord
may, by written notice to Tenant prior to the end of the Lease Term, or given following any earlier termination of this Lease, require Tenant, at Tenant’s expense, to remove any Alterations or improvements in the Premises, and to repair any
damage to the Premises and Building caused by such removal and return the affected portion of the Premises to a building standard tenant improved condition as determined by Landlord; provided, however, that the vaults, safes, automatic teller
machines and night depository boxes and, to the extent not removed by Landlord pursuant to Section 23.5 hereof, Tenant’s Building top sign, shall be removed by Tenant (at Tenant’s sole cost and expense) upon the expiration or sooner
termination of this Lease unless Landlord otherwise elects in writing. If Tenant fails to complete such removal and/or to repair any damage caused by the removal of any Alterations or improvements in the Premises, and/or fails to return the affected
portion of the Premises to a building standard tenant improved condition as determined by Landlord, Landlord may do so and may charge the cost thereof to Tenant. Tenant hereby protects, defends, indemnifies and holds Landlord harmless from any
liability, cost, obligation, expense or claim of lien in any manner relating to the installation, placement, removal or financing of any such Alterations, improvements, fixtures and/or equipment in, on or about the Premises, which obligations of
Tenant shall survive the expiration or earlier termination of this Lease. 
  
 8.6 Refurbishment Allowance. 
  
 8.6.1 Refurbishment of Premises. Notwithstanding anything to the contrary contained herein, Tenant shall be entitled to renovate the then-existing tenant improvements in the Premises in accordance with this Section 8.6 and otherwise
in accordance with this Article 8. In connection therewith, Tenant shall be entitled to a one-time tenant refurbishment allowance (the “Refurbishment Allowance”) in an amount of Fifteen Dollars ($15.00) per usable square foot of the
Premises (i.e., Forty-Eight Thousand Six Hundred Thirty Dollars ($48,630.00) based on 3,242 usable square feet in the Premises) for the costs relating to the design and construction of certain renovations to the then-existing tenant improvements in
the Premises that are to be permanently affixed to the Premises (the “Refurbished Improvements”). In no event shall Landlord be obligated to make disbursements under this Section 8.6 in a total amount which exceeds the Refurbishment
Allowance. 
  

 -13- 

 8.6.1.1 Refurbishment Allowance Items. The Refurbishment Allowance shall be disbursed by Landlord
following completion of the Refurbished Improvements for the following items and costs only (collectively the “Refurbishment Allowance Items”). 
  
 (A) Payment of the fees of the architect and engineer(s) retained by Tenant (if any), and payment of the fees incurred by, and the cost of documents and
materials supplied by, Landlord and Landlord’s consultants in connection with the review of the plans and specifications prepared for the Refurbished Improvements (“Refurbishment Drawings”); 
  
 (B) The payment of plan check, permit and license fees relating to
construction of the Refurbished Improvements; 
  
 (C) The cost of
construction of the Refurbished Improvements, including, without limitation, testing and inspection costs, trash removal costs, and contractors’ fees and general conditions together with the cost of repairing the affixed furniture in the work
stations existing in the Premises as of the date hereof; 
  
 (D)
The cost of any changes in the existing Building when such changes are required by the Refurbishment Drawings, such cost to include all direct architectural and/or engineering fees and expenses incurred in connection therewith; 
  
 (E) The cost of any changes to the Refurbishment Drawings or Refurbished
Improvements required by applicable building codes; 
  
 (F) Sales
and use taxes and Title 24 fees; and 
  
 (G) Landlord’s
Supervision Fee (as defined below). 
  
 8.6.1.2 Disbursement
of Refurbishment Allowance. Provided that Tenant is not in monetary default on any of its obligations under this Lease, upon completion of the Refurbished Improvements, Landlord shall make a disbursement of the Refurbishment Allowance for
Refurbishment Allowance Items for the benefit of Tenant and shall authorize the release of monies for the benefit of Tenant as follows. 
  
 (A) Disbursement. Tenant shall deliver to Landlord: (i) a request for payment of Tenant’s general contractor (“Contractor”), which
Contractor shall be retained by Tenant and shall be subject to Landlord’s reasonable prior written approval, and which request shall be approved by Tenant, in a form to be provided by Landlord; (ii) invoices from all subcontractors, laborers,
materialmen and suppliers used by Tenant in connection with the Refurbished Improvements (such subcontractors, laborers, materialmen and suppliers, and the Contractor may be known collectively as “Tenant’s Agents”), for labor rendered
and materials delivered to the Premises for the Refurbished Improvements; (iii) executed unconditional mechanics’ lien releases from all of Tenant’s Agents which shall comply with the appropriate provisions, as reasonably determined by
Landlord, of California Civil Code Section 3262(d) and either Section 3262(d)(3) or Section 3262(d)(4); and (iv) all other information reasonably requested by Landlord. Tenant’s request for payment shall be deemed Tenant’s acceptance and
approval of the work furnished and/or the materials supplied as set forth in Tenant’s payment request. Promptly thereafter, assuming Landlord receives all of the applicable information described in items (i) through (iv), above. Landlord shall
deliver a check made payable to Tenant in payment of the amounts so requested by Tenant (but in no event to exceed the amount of the Refurbishment Allowance), provided that Landlord does not dispute any request for payment based on non-compliance on
of any work with the Refurbishment Drawings, or due to any substandard work. Landlord’s payment of such amounts shall not be deemed Landlord’s approval or acceptance of the work furnished or materials supplied as set forth in Tenant’s
payment request. 
  

 -14- 

 (B) Other Terms. Landlord shall only be obligated to make disbursements from the Refurbishment
Allowance to the extent costs are incurred by Tenant for Refurbishment Allowance Items. All Refurbishment Allowance Items for which the Refurbishment Allowance has been made available shall be deemed Landlord’s property (but subject to the
terms and conditions of Section 8.5 above). In no event shall Tenant be entitled to any credit for any unused portion of the Refurbishment Allowance. All drafts of the Refurbishment Drawings shall be subject to Landlord’s prior written
approval, which approval shall not be unreasonably withheld or delayed. In addition, all of Tenant’s Agents shall be subject to Landlord’s prior written approval (which approval shall not be unreasonably withheld), except that
subcontractors of Landlord’s selection shall be retained by the Contractor to perform all lifesafety, mechanical, electrical, plumbing, structural and heating, ventilation and air conditioning work. Notwithstanding anything in this Section 8.6
to the contrary, in no event will Tenant be entitled to receive any portion of the Refurbishment Allowance for Refurbished Improvements that have not been completed on or before March 1, 2002. 
  
 8.6.1.3 No Rent Abatement. Tenant acknowledges that the work to be
performed by Tenant pursuant to this Section 8 above shall be performed during the Lease Term, that Tenant shall be entitled to (but shall not be obligated to) conduct business throughout the course of construction of such renovations and that
Tenant shall not be entitled to any abatement of rent, nor shall Tenant be deemed to be constructively evicted from the Premises, as a result of the construction of such renovations. 
  
 8.6.1.4 Landlord’s Supervision Fee. Tenant shall pay to Landlord a construction supervision and management fee
( the “Landlord Supervision Fee”) in an amount equal to the product of (i) two percent (2%) and (ii) the Refurbishment Allowance plus the costs incurred by Tenant to design and construct the Refurbished Improvements in excess of such
Refurbishment Allowance. 
  
 ARTICLE 9 
  
 COVENANT AGAINST LIENS 
  
 Tenant shall keep the Project and Premises free from any liens or
encumbrances arising out of the work performed, materials furnished or obligations incurred by or on behalf of Tenant, and shall protect, defend, indemnify and hold Landlord harmless from and against any claims, liabilities, judgments or costs
(including, without limitation, reasonable attorneys’ fees and costs) arising out of same or in connection therewith. Tenant shall give Landlord notice at least twenty (20) days prior to the commencement of any such work on the Premises (or
such additional time as may be necessary under applicable laws) to afford Landlord the opportunity of posting and recording appropriate notices of non-responsibility. Tenant shall remove any such lien or encumbrance by bond or otherwise within five
(5) days after notice by Landlord, and if Tenant shall fail to do so, Landlord may pay the amount necessary to remove such lien or encumbrance, without being responsible for investigating the validity thereof. The amount so paid shall be deemed
Additional Rent under this Lease payable upon demand, without limitation as to other remedies available to Landlord under this Lease. Nothing contained in this Lease shall authorize Tenant to do any act which shall subject Landlord’s title to
the Building or Premises to any liens or encumbrances whether claimed by operation of law or express or implied contract. Any claim to a lien or encumbrance upon the Building or Premises arising in connection with any such work or respecting the
Premises not performed by or at the request of Landlord shall be null and void, or at Landlord’s option shall attach only against Tenant’s interest in the Premises and shall in all respects be subordinate to Landlord’s title to the
Project, Building and Premises. 
  
 ARTICLE 10 
  
 INSURANCE 
  
 10.1 Indemnification and Waiver. Tenant hereby assumes all risk of damage to property or injury to persons in, upon
or about the Premises from any cause whatsoever and agrees that Landlord, its partners, subpartners and their respective officers, agents, servants, employees, and independent contractors (collectively, “Landlord Parties”) shall not be
liable for, and are hereby released from any responsibility for, any damage either to person or property or resulting from the loss of use thereof, which damage is sustained by Tenant or by other persons claiming through Tenant. Tenant shall
indemnify, defend, protect, and hold harmless the Landlord Parties 

  

 -15- 

 
from any and all loss, cost, damage, expense and liability (including without limitation court costs and reasonable attorneys’ fees) incurred in
connection with or arising from any cause in, on or about the Premises, any acts, omissions or negligence of Tenant or of any person claiming by, through or under Tenant, or of the contractors, agents, servants, employees, invitees, guests or
licensees of Tenant or any such person, in, on or about the Project or any breach of the terms of this Lease, either prior to, during, or after the expiration of the Lease Term, provided that the terms of the foregoing indemnity shall not apply to
the negligence or willful misconduct of Landlord. Should Landlord be named as a defendant in any suit brought against Tenant in connection with or arising out of Tenant’s occupancy of the Premises, Tenant shall pay to Landlord its costs and
expense incurred in such suit, including without limitation, its actual professional fees such as appraisers’, accountants’ and attorneys’ fees. Further, Tenant’s agreement to indemnify Landlord pursuant to this Section 10.1 is
not intended and shall not relieve any insurance carrier of its obligations under policies required to be carried by Tenant pursuant to the provisions of this Lease, to the extent such policies cover the matters subject to Tenant’s
indemnification obligations; nor shall they supersede any inconsistent agreement of the parties set forth in any other provision of this Lease. The provisions of this Section 10.1 shall survive the expiration or sooner termination of this Lease with
respect to any claims or liability arising in connection with any event occurring prior to such expiration or termination. 
  
 10.2 Tenant’s Compliance With Landlord’s Fire and Casualty Insurance. Tenant shall, at Tenant’s expense, comply with all insurance
company requirements pertaining to the use of the Premises. If Tenant’s conduct or use of the Premises causes any increase in the premium for such insurance policies then Tenant shall reimburse Landlord for any such increase. Tenant, at
Tenant’s expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National Board of Fire Underwriters) and with any similar body. 
  
 10.3 Tenant’s Insurance. Commencing as of the date Tenant
occupies the Premises and otherwise at all times during the Term of this Lease, Tenant shall maintain the following coverages in the following amounts. 
  
 10.3.1 Commercial General Liability Insurance covering, on an occurrence basis, the insured against claims of bodily injury, personal injury and property
damage (including loss of use thereof) arising out of Tenant’s operations, and contractual liabilities (covering the performance by Tenant of its indemnity agreements) including a Broad Form endorsement covering the insuring provisions of this
Lease and the performance by Tenant of the indemnity agreements set forth in Section 10.1 of this Lease, for limits of liability not less than: 
  
  

	 Bodily Injury and
 Property Damage Liability
	  	 $2,000,000 each occurrence
 $2,00,000 annual aggregate

		
	 Personal Injury Liability
	  	 $2,000,000 each occurrence
 $2,000,000 annual aggregate
 0% Insured’s participation

  
 10.3.2 Physical
Damage Insurance covering (i) all office furniture, business and trade fixtures, office equipment, free-standing cabinet work, movable partitions, merchandise and all other items of Tenant’s property on the Premises installed by, for, or at the
expense of Tenant, and (ii) all improvements, alterations and additions to the Premises (including any improvements, alterations or additions (collectively, the “Original Improvements”) existing in the Premises as of the date hereof)
whether above the ceiling of the Premises or below the floor of the Premises but excluding any Base Building improvements (as defined in Section 8.2 above). Such insurance shall be written on an “all risks” of physical loss or damage
basis, for the full replacement cost value (subject to reasonable deductible amounts) new without deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include
coverage for damage or other loss caused by fire or other peril including, but not limited to, vandalism and malicious mischief, theft, water damage of any type, including sprinkler leakage, bursting or stoppage of pipes, and explosion, and
providing business interruption coverage for a period of one year. 
  
 10.3.3 Worker’s Compensation and Employer’s Liability or other similar insurance pursuant to all applicable state and local statutes and regulations. 
  

 -16- 

 10.3.4 Business interruption, loss of income and extra expense insurance in amounts sufficient to pay
for Tenant’s expenses and lost income attributable to perils commonly insured against by prudent tenants or attributable to prevention of access to the Premises as a result of such perils. 
  
 10.4 Form of Policies. The minimum limits of policies of insurance
required of Tenant under this Lease shall in no event limit the liability of Tenant under this Lease. Such insurance shall (i) name Landlord, and any other party the Landlord so specifies, as an additional insured, including Landlord’s managing
agent, if any; (ii) specifically cover the liability assumed by Tenant under this Lease, including, but not limited to, Tenant’s obligations under Section 10.1 of this Lease; (iii) be issued by an insurance company having a rating of not less
than A-X in Best’s Insurance Guide or which is otherwise acceptable to Landlord and licensed to do business in the State of California; (iv) be primary insurance as to all claims thereunder and provide that any insurance carried by Landlord is
excess and is non-contributing with any insurance requirement of Tenant; (v) be in form and content reasonably acceptable to Landlord; (vi) provide that said insurance shall not be canceled or coverage changed unless thirty (30) days’ prior
written notice shall have been given to Landlord and any mortgagee of Landlord; and (vii) with respect to insurance required in Sections 10.3.1 and 10.3.2 above, have deductible amounts not exceeding Five Thousand Dollars ($5,000.00). Tenant shall
deliver said policy or policies or certificates thereof to Landlord on or before the Lease Commencement Date and at least thirty (30) days before the expiration dates thereof, In the event Tenant shall fail to procure such insurance, or to deliver
such policies or certificate, Landlord may, at its option, procure such policies for the account of Tenant, and the cost thereof shall be paid to Landlord within five (5) days after delivery to Tenant of bills therefor. 
  
 10.5 Subrogation. Landlord and Tenant intend that their respective
property loss risks shall be borne by reasonable insurance carriers to the extent above provided, and Landlord and Tenant hereby agree to look solely to, and seek recovery only from, their respective insurance carriers in the event of a property
loss to the extent that such coverage is agreed to be provided hereunder. The parties each hereby waive all rights and claims against each other for such losses, and waive all rights of subrogation of their respective insurers, provided such waiver
of subrogation shall not affect the right to the insured to recover thereunder. The parties agree that their respective insurance policies are now, or shall be, endorsed such that the waiver of subrogation shall not affect the right of the insured
to recover thereunder, so long as no material additional premium is charged therefor. 
  
 10.6 Additional Insurance Obligations. Tenant shall carry and maintain during the entire Lease Term, at Tenant’s sole cost and expense, increased amounts of the insurance required to be carried by Tenant
pursuant to this Article 10 and such other reasonable types of insurance coverage and in such reasonable amounts covering the Premises and Tenant’s operations therein, as may be reasonably requested by Landlord. 
  
 ARTICLE 11 
  
 DAMAGE AND DESTRUCTION 
  
 11.1 Repair of Damage to Premises by Landlord. Tenant shall promptly notify Landlord of any damage to the Premises resulting from fire or any other
casualty. If the Premises or any Common Areas serving or providing access to the Premises shall be damaged by fire or other casualty, Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters
beyond Landlord’s reasonable control, and subject to all other terms of this Article 11, restore the Base Building and such Common Areas. Such restoration shall be to substantially the same condition of the Base Building and the Common Areas
prior to the casualty, except for modifications required by zoning and building codes and other laws or by the holder of a mortgage on the Building or Project or any other modifications to the Common Areas deemed desirable by Landlord, provided that
access to the Premises and any common restrooms serving the Premises shall not be materially impaired. Upon the occurrence of any damage to the Premises, upon notice (the “Landlord Repair Notice”) to Tenant from Landlord. Tenant shall
assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant under Tenant’s insurance required under Sections 10.3.2(ii) and 10.3.2(iii) of this Lease, and Landlord shall repair any injury or damage to
any improvements and the Original Improvements installed in the Premises and shall return such Tenant Improvements and Original Improvements to their original condition; provided that if the cost of such repair by Landlord exceeds the amount of
insurance proceeds received by Landlord from Tenant’s insurance carrier, as assigned by Tenant, the cost of such repairs shall be paid by Tenant to Landlord prior to Landlord’s commencement of repair of the damage. In the event that
Landlord does not deliver the Landlord Repair Notice 

  

 -17- 

 
within sixty (60) days following the date the casualty becomes known to Landlord (and Landlord has elected to restore the Base Building and the Common
Areas), Tenant shall, at its sole cost and expense, repair any injury or damage to the Tenant Improvements and the Original Improvements installed in the Premises and shall return such Tenant Improvements and Original Improvements to their original
condition. Whether or not Landlord delivers a Landlord Repair Notice, prior to the commencement of construction, Tenant shall submit to Landlord, for Landlord’s review and approval, all plans, specifications and working drawings relating
thereto, and Landlord shall select the contractors to perform such improvement work. Landlord shall not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant’s business resulting in any way from such damage
or the repair thereof; provided however, that if such fire or other casualty shall have damaged the Premises or Common Areas necessary to Tenant’s occupancy, Landlord shall allow Tenant a proportionate abatement of Rent during the time and to
the extent the Premises are unfit for occupancy for the purposes permitted under this Lease, and not occupied by Tenant as a result thereof. In the event that Landlord shall not deliver the Landlord Repair Notice, Tenant’s right to rent
abatement pursuant to the preceding sentence shall terminate as of the date which is reasonably determined by Landlord to be the date Tenant should have completed repairs to the Premises assuming Tenant used reasonable due diligence in connection
therewith. 
  
 11.2 Landlord’s Option to Repair.
Notwithstanding the terms of Section 11.1 of this Lease, Landlord may elect not to rebuild and/or restore the Premises, Building and/or Project, and instead terminate this Lease, by notifying Tenant in writing of such termination within sixty (60)
days after the date of discovery of the damage, such notice to include a termination date giving Tenant sixty (60) days to vacate the Premises, but Landlord may so elect only if the Building or Project shall be damaged by fire or other casualty or
cause, whether or not the Premises are affected, and one or more of the following conditions is present: (i) in Landlord’s reasonable judgment, repairs cannot reasonably be completed within one hundred eighty (180) days after the date of
discovery of the damage (when such repairs are made without the payment of overtime or other premiums); (ii) the holder of any mortgage on the Building or Project or ground lessor with respect to the Building or Project shall require that the
insurance proceeds or any portion thereof be used to retire the mortgage debt or shall terminate the ground lease, as the case may be; (iii) the damage is not fully covered by Landlord’s insurance policies; or (iv) the damage occurs during the
last twelve (12) months of the Lease Term. 
  
 11.3 Waiver of
Statutory Provisions. The provisions of this Lease, including this Article 11, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of all or any part of the Premises, the Building or
the Project, and any statute or regulation of the State of California, including, without limitation. Sections 1932(2) and 1933(4) of the California Civil Code, with respect to any rights or obligations concerning damage or destruction in the
absence of an express agreement between the parties, and any other statute or regulation, now or hereafter in effect, shall have no application to this Lease or any damage or destruction to all or any part of the Premises, the Building or the
Project. 
  
 ARTICLE 12 
  
 NONWAIVER 
  
 No provision of this Lease shall be deemed waived by either party hereto unless expressly waived in a writing signed
thereby. The waiver by either party hereto of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of same or any other term, covenant or condition herein contained. The
subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular Rent so accepted,
regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such Rent. No acceptance of a lesser amount than the Rent herein stipulated shall be deemed a waiver of Landlord’s right to receive the full amount
due, nor shall any endorsement or statement on any check or payment or any letter accompanying such check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to
recover the full amount due. No receipt of monies by Landlord from Tenant after the termination of this Lease shall in any way alter the length of the Lease Term or of Tenant’s right of possession hereunder, or after the giving of any notice
shall reinstate, continue or extend the Lease Term or affect any notice given Tenant prior to the receipt of such monies, it being agreed that after the service of notice or the commencement of a suit, or after final judgment for possession of the
Premises, Landlord may receive and collect any Rent due, and the payment of said Rent shall not waive or affect said notice, suit or judgment. 
  

 -18- 

 ARTICLE 13 
  
 CONDEMNATION 
  
 If the whole or any part of the Premises, Building or Project shall be taken by power of eminent domain or condemned by any competent authority for any
public or quasi-public use or purpose, or if any adjacent property or street shall be so taken or condemned, or reconfigured or vacated by such authority in such manner, as to require the use, reconstruction or remodeling of any part of the
Premises, Building or Project, or if Landlord shall grant a deed or other instrument in lieu of such taking by eminent domain or condemnation, Landlord shall have the option to terminate this Lease effective as of the date possession is required to
be surrendered to the authority. If more than twenty-five percent (25%) of the rentable square feet of the Premises is taken, or if access to the Premises is substantially impaired, in each case for a period in excess of one hundred eighty (180)
days, Tenant shall have the option to terminate this Lease effective as of the date possession is required to be surrendered to the authority. Tenant shall not because of such taking assert any claim against Landlord or the authority for any
compensation because of such taking and Landlord shall be entitled to the entire award or payment in connection therewith, except that Tenant shall have the right to file any separate claim available to Tenant for any taking of Tenant’s
personal property and fixtures belonging to Tenant and removable by Tenant upon expiration of the Lease Term pursuant to the terms of this Lease, and for moving expenses, so long as such claims do not diminish the award available to Landlord, its
ground lessor with respect to the Building or Project or its mortgagee, and such claim is payable separately to Tenant. All Rent shall be apportioned as of the date of such termination. If any part of the Premises shall be taken, and this Lease
shall not be so terminated, the Rent shall be proportionately abated. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of The California Code of Civil Procedure. Notwithstanding anything to the contrary
contained in this Article 13, in the event of a temporary taking of all or any portion of the Premises for a period of one hundred and thirty (30) days or less, then this Lease shall not terminate but the Base Rent and the Additional Rent shall be
abated for the period of such taking in proportion to the ratio that the amount of rentable square feet of the Premises taken bears to the total rentable square feet of the Premises. Landlord shall be entitled to receive the entire award made in
connection with any such temporary taking. 
  
 ARTICLE 14

  
 ASSIGNMENT AND SUBLETTING 
  
 14.1 Transfers. Tenant shall not, without the prior written consent
of Landlord, assign, mortgage, pledge, hypothecate, encumber, or permit any lien to attach to, or otherwise transfer, this Lease or any interest hereunder, permit any assignment, or other transfer of this Lease or any interest hereunder by operation
of law, sublet the Premises or any part thereof, or enter into any license or concession agreements or otherwise permit the occupancy or use of the Premises or any part thereof by any persons other than Tenant and its employees and contractors (all
of the foregoing are hereinafter sometimes referred to collectively as “Transfers” and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a “Transferee”). If Tenant desires
Landlord’s consent to any Transfer, Tenant shall notify Landlord in writing, which notice (the “Transfer Notice”) shall include (i) the proposed effective date of the Transfer, which shall not be less than forty-five (45) days nor
more than one hundred eighty (180) days after the date of delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the “Subject Space”), (iii) all of the terms of the proposed Transfer and the
consideration therefor, including calculation of the “Transfer Premium”, as that term is defined in Section 14.3 below, in connection with such Transfer, the name and address of the proposed Transferee, and a copy of all existing executed
and/or proposed documentation pertaining to the proposed Transfer, including all existing operative documents to be executed to evidence such Transfer or the agreements incidental or related to such Transfer, provided that Landlord shall have the
right to require Tenant to utilize Landlord’s standard Transfer documents in connection with the documentation of such Transfer, (iv) current financial statements of the proposed Transferee certified by an officer, partner or owner thereof,
business credit and personal references and history of the proposed Transferee and any other information required by Landlord which will enable Landlord to determine the financial responsibility, character, and reputation of the proposed Transferee,
nature of such Transferee’s business and proposed use of the Subject Space and (v) an executed estoppel certificate from Tenant in the form attached hereto 

  

 -19- 

 
as Exhibit E. Any Transfer made without Landlord’s prior written consent shall, at Landlord’s option, be null, void and of no effect, and
shall, at Landlord’s option, constitute a default by Tenant under this Lease. Whether or not Landlord consents to any proposed Transfer, Tenant shall pay Landlord’s review and processing fees, as well as any reasonable professional fees
(including, without limitation, attorneys’, accountants’, architects’, engineers’ and consultants’ fees) incurred by Landlord, within thirty (30) days after written request by Landlord. 
  
 14.2 Landlord’s Consent. Landlord shall not unreasonably withhold
its consent to any proposed Transfer of the Subject Space to the Transferee on the terms specified in the Transfer Notice. Without limitation as to other reasonable grounds for withholding consent, the parties hereby agree that it shall be
reasonable under this Lease and under any applicable law for Landlord to withhold consent to any proposed Transfer where one or more of the following apply: 
  
 14.2.1 The Transferee is of a character or reputation or engaged in a business which is not consistent with the quality of the Building or the Project;

  
 14.2.2 The Transferee intends to use the Subject Space for
purposes which are not permitted under this Lease; 
  
 14.2.3 The
Transferee is either a governmental agency or instrumentality thereof; 
  
 14.2.4 The Transferee is not a party of reasonable financial worth and/or financial stability in light of the responsibilities to be undertaken in connection with the Transfer on the date consent is requested; 
  
 14.2.5 The proposed Transfer would cause a violation of another lease for
space in the Project, or would give an occupant of the Project a right to cancel its lease; 
  
 14.2.6 The terms of the proposed Transfer will allow the Transferee to exercise a right of renewal, right of expansion, right of first offer, or other similar right held by Tenant (or will allow the Transferee to
occupy space leased by Tenant pursuant to any such right); 
  
 14.2.7 Either the proposed Transferee, or any person or entity which directly or indirectly, controls, is controlled by, or is under common control with, the proposed Transferee, (i) occupies space in the Project at the time of the request
for consent and Landlord has space comparable to the Subject Space available for lease in the Building, or (ii) is negotiating with Landlord to lease space in the Project at such time; or 
  
 14.2.8 The Transferee does not intend to occupy the entire Premises and conduct its business therefrom for a substantial
portion of the term of the Transfer. 
  
 If Landlord consents to
any Transfer pursuant to the terms of this Section 14.2 (and does not exercise any recapture rights Landlord may have under Section 14.4 of this Lease), Tenant may within six (6) months after Landlord’s consent but not later than the expiration
of said six-month period, enter into such Transfer of the Premises or portion thereof, upon substantially the same terms and conditions as are set forth in the Transfer Notice furnished by Tenant to Landlord pursuant to Section 14.1 of this Lease,
provided that if there are any changes in the terms and conditions from those specified in the Transfer Notice (i) such that Landlord would initially have been entitled to refuse its consent to such Transfer under this Section 14.2, or (ii) which
would cause the proposed Transfer to be more favorable to the Transferee than the terms set forth in Tenant’s original Transfer Notice. Tenant shall again submit the Transfer to Landlord for its approval and other action under this Article 14
(including Landlord’s right of recapture, if any, under Section 14.4 of this Lease). Notwithstanding anything to the contrary in this Lease, if Tenant or any proposed Transferee claims that Landlord has unreasonably withheld or delayed its
consent under Section 14.2 or otherwise has breached or acted unreasonably under this Article 14, their sole remedies shall be a declaratory judgment and an injunction for the relief sought without any monetary damages, and Tenant hereby waives all
other remedies, including, without limitation, any right at law or equity to terminate this Lease, on its own behalf and, to the extent permitted under all applicable laws, on behalf of the proposed Transferee. Tenant shall indemnify, defend and
hold harmless Landlord from any and all liability, losses, claims, damages, costs, expenses, causes of action and proceedings involving any third party or parties (including without limitation Tenant’s proposed subtenant or assignee) who claim
they were damaged by Landlord’s wrongful withholding or conditioning of Landlord’s consent. 
  

 -20- 

 14.3 Transfer Premium. If Landlord consents to a Transfer, as a condition thereto which the
parties hereby agree is reasonable, Tenant shall pay to Landlord fifty percent (50%) of any “Transfer Premium,” as that term is defined in this Section 14.3, received by Tenant from such Transferee. “Transfer Premium” shall mean
all rent, additional rent or other consideration payable by such Transferee in connection with the Transfer in excess of the Rent and Additional Rent payable by Tenant under this Lease during the term of the Transfer on a per rentable square foot
basis if less than all of the Premises is transferred, after deducting the reasonable expenses incurred by Tenant for (i) any changes, alterations and improvements to the Premises in connection with the Transfer, (ii) any out-of-pocket concessions
reasonably provided to the Transferee, and (iii) any brokerage commissions in connection with the Transfer. “Transfer Premium” shall also include, but not be limited to, key money, bonus money or other cash consideration paid by Transferee
to Tenant in connection with such Transfer, and any payment in excess of fair market value for services rendered by Tenant to Transferee or for assets, fixtures, inventory, equipment, or furniture transferred by Tenant to Transferee in connection
with such Transfer. 
  
 14.4 Landlord’s Option as to
Subject Space. Notwithstanding anything to the contrary contained in this Article 14, Landlord shall have the option, by giving written notice to Tenant within forty-five (45) days after receipt of any Transfer Notice, to recapture the Subject
Space. Such recapture notice shall cancel and terminate this Lease with respect to the Subject Space as of the date stated in the Transfer Notice as the effective date of the proposed Transfer until the last day of the term of the Transfer as set
forth in the Transfer Notice (or at Landlord’s option, shall cause the Transfer to be made to Landlord or its agent, in which case the parties shall execute the Transfer documentation promptly thereafter). In the event of a recapture by
Landlord, if this Lease shall be canceled with respect to less than the entire Premises, the Rent reserved herein shall be prorated on the basis of the number of rentable square feet retained by Tenant in proportion to the number of rentable square
feet contained in the Premises, and this Lease as so amended shall continue thereafter in full force and effect, and upon request of either party, the parties shall execute written confirmation of the same. If Landlord declines, or fails to elect in
a timely manner to recapture the Subject Space under this Section 14.4, then, provided Landlord has consented to the proposed Transfer, Tenant shall be entitled to proceed to transfer the Subject Space to the proposed Transferee, subject to
provisions of this Article 14. 
  
 14.5 Effect of Transfer.
If Landlord consents to a Transfer, (i) the terms and conditions of this Lease shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed consent to any further Transfer by either Tenant or a Transferee, (iii)
Tenant shall deliver to Landlord, promptly after execution, an original executed copy of all documentation pertaining to the Transfer in form reasonably acceptable to Landlord, (iv) Tenant shall furnish upon Landlord’s request a complete
statement, certified by an independent certified public accountant, or Tenant’s chief financial officer, setting forth in detail the computation of any Transfer Premium Tenant has derived and shall derive from such Transfer, and (v) no Transfer
relating to this Lease or agreement entered into with respect thereto, whether with or without Landlord’s consent, shall relieve Tenant or any guarantor of the Lease from any liability under this Lease, including, without limitation, in
connection with the Subject Space. Landlord or its authorized representatives shall have the right at all reasonable times to audit the books, records and papers of Tenant relating to any Transfer, and shall have the right to make copies thereof. If
the Transfer Premium respecting any Transfer shall be found understated, such event shall, at Landlord’s option, be deemed to be an uncurable Event of Default (as such term is defined in Section 19.1 below) and Tenant shall, within thirty (30)
days after demand, pay the deficiency, and if understated by more than two percent (2%), Tenant shall pay Landlord’s costs of such audit. 
  
 14.6 Additional Transfers. For purposes of this Lease, the term “Transfer” shall also include (i) if Tenant is a partnership, the
withdrawal or change, voluntary, involuntary or by operation of law, of fifty percent (50%) or more of the partners, or transfer of fifty percent (50%) or more of partnership interests, within a twelve (12)-month period, or the dissolution of the
partnership without immediate reconstitution thereof, and (ii) if Tenant is a closely held corporation (i.e., whose stock is not publicly held and not traded through an exchange or over the counter), (A) the dissolution, merger, consolidation or
other reorganization of Tenant or (B) the sale or other transfer of an aggregate of fifty percent (50%) or more of the voting shares of Tenant (other than to immediate family members by reason of gift or death), within a twelve (12)-month period, or
(C) the sale, mortgage, hypothecation or pledge of an aggregate of fifty percent (50%) or more of the value of the unencumbered assets of Tenant within a twelve (12)-month period. 

  

 -21- 

 14.7 Occurrence of Default. Any Transfer hereunder shall be subordinate and subject to the
provisions of this Lease, and if this Lease shall be terminated during the term of any Transfer, Landlord shall have the right to: (i) treat such Transfer as canceled and repossess the Subject Space by any lawful means, or (ii) require that such
Transferee attorn to and recognize Landlord as its landlord under any such Transfer. If Tenant shall be in default under this Lease, Landlord is hereby irrevocably authorized, as Tenant’s agent and attorney-in-fact, to direct any Transferee to
make all payments under or in connection with the Transfer directly to Landlord (which Landlord shall apply towards Tenant’s obligations under this Lease) until such default is cured. Such Transferee shall rely on any representation by Landlord
that Tenant is in default hereunder, without any need for confirmation thereof by Tenant. Upon any assignment, the assignee shall assume in writing all obligations and covenants of Tenant thereafter to be performed or observed under this Lease. No
collection or acceptance of rent by Landlord from any Transferee shall be deemed a waiver of any provision of this Article 14 or the approval of any Transferee or a release of Tenant from any obligation under this Lease, whether theretofore or
thereafter accruing. In no event shall Landlord’s enforcement of any provision of this Lease against any Transferee be deemed a waiver of Landlord’s right to enforce any term of this Lease against Tenant or any other person. If
Tenant’s obligations hereunder have been guaranteed, Landlord’s consent to any Transfer shall not be effective unless the guarantor also consents to such Transfer. 
  
 14.8 Non-Transfers. Notwithstanding anything to the contrary contained in this Article 14, an assignment or
subletting of all or a portion of the Premises to (a) an affiliate of Tenant (i.e., an entity which is controlled by, controls or is under common control, as such term is defined in California General Corporations Code (“CGCC”) Sections
160 and 5045, with, Tenant); (b) an entity which merges with or acquires or is acquired by, Tenant or a parent of Tenant, as defined in CGCC Sections 175 and 5064, or a subsidiary, as defined in CGCC Sections 189 and 5073, of Tenant’s parent or
Affiliate, or (c) a transferee of substantially all of the assets or stock of Tenant (a, b and c to be collectively be referred to herein as an “Affiliate”) along with any other entity which will qualify as an “affiliate” under
CGCC 150 and 5031, shall not be deemed a Transfer under this Article 14 (and shall not entitle Landlord to any Transfer Premium), provided that at least ten (10) days prior to such assignment or sublease (i) Tenant provides Landlord with reasonable
evidence that any such entity maintains a tangible net worth, calculated in accordance with generally accepted accounting principles, consistently applied (“Net Worth”), sufficient to meet the obligations under the assignment or sublease
or at the time this Lease is executed; (ii) Tenant notifies Landlord of any such assignment or sublease and promptly supplies Landlord with any documents or information requested by Landlord regarding such assignment or sublease or such Affiliate;
(iii) such assignment or sublease is not a subterfuge by Tenant to avoid its obligations under this Lease; (iv) any such assignment or sublease shall be subject and subordinate to all of the terms and provisions of this Lease, and such assignee, if
applicable, shall assume, in a written document delivered to Landlord upon or prior to the effective date of such assignment, all the obligations of Tenant under this Lease arising after the effective date of such assignment, including, without
limitation, the provisions of Article 5 of this Lease regarding the use of the Premises; and (v) Tenant shall remain fully liable for all obligations to be performed by Tenant under this Lease. 
  
 ARTICLE 15 
  
 SURRENDER OF PREMISES; OWNERSHIP AND 
 REMOVAL OF TRADE FIXTURES 
  
 15.1 Surrender of Premises. No act or thing done by Landlord or any agent or employee of Landlord during the Lease Term shall be deemed to constitute an acceptance by Landlord of a surrender of the Premises unless such intent is
specifically acknowledged in writing by Landlord. The delivery of keys to the Premises to Landlord or any agent or employee of Landlord shall not constitute a surrender of the Premises or effect a termination of this Lease, whether or not the keys
are thereafter retained by Landlord, and notwithstanding such delivery Tenant shall be entitled to the return of such keys at any reasonable time upon request until this Lease shall have been properly terminated. The voluntary or other surrender of
this Lease by Tenant, whether accepted by Landlord or not, or a mutual termination hereof, shall not work a merger, and at the option of Landlord shall operate as an assignment to Landlord of all subleases or subtenancies affecting the Premises or
terminate any or all such sublessees or subtenancies. 

  

 -22- 

 15.2 Removal of Tenant Property by Tenant. Upon the expiration of the Lease Term, or upon any
earlier termination of this Lease, Tenant shall, subject to the provisions of this Article 15, quit and surrender possession of the Premises to Landlord in as good order and condition as when Tenant took possession and as thereafter improved by
Landlord and/or Tenant, reasonable wear and tear and repairs which are specifically made the responsibility of Landlord hereunder excepted. Upon such expiration or termination, Tenant shall, without expense to Landlord, remove or cause to be removed
from the Premises all debris and rubbish, and such items of furniture, equipment, business and trade fixtures, free-standing cabinet work, movable partitions and other articles of personal property owned by Tenant or installed or placed by Tenant at
its expense in the Premises, and such similar articles of any other persons claiming under Tenant, as Landlord may, in its sole discretion, require to be removed, and Tenant shall repair at its own expense all damage to the Premises and Building
resulting from such removal. 
  
 ARTICLE 16 
  
 HOLDING OVER 
  
 If Tenant holds over after the expiration of the Lease Term or earlier termination thereof, with or without the express or
implied consent of Landlord, such tenancy shall be from month-to-month only, and shall not constitute a renewal hereof or an extension for any further term and in such case Rent shall be payable at a monthly rate equal to the product of (i) the Rent
applicable during the last rental period of the Lease Term under this Lease, and (ii) one hundred fifty percent (150%). Such month-to-month tenancy shall be subject to every other applicable term, covenant and agreement contained herein. Nothing
contained in this Article 16 shall be construed as consent by Landlord to any holding over by Tenant, and Landlord expressly reserves the right to require Tenant to surrender possession of the Premises to Landlord as provided in this Lease upon the
expiration or other termination of this Lease. The provisions of this Article 16 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. If Tenant fails to surrender the Premises
upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss, costs (including reasonable attorneys’
fees) and liability resulting from such failure, including, without limiting the generality of the foregoing, any claims made by any succeeding tenant founded upon such failure to surrender and any lost profits to Landlord resulting therefrom.

  
 ARTICLE 17 
  
 ESTOPPEL CERTIFICATES 
  
 Within five (5) days following a request in writing by Landlord, Tenant
shall execute, acknowledge and deliver to Landlord an estoppel certificate, which, as submitted by Landlord, shall be substantially in the form of Exhibit E, attached hereto (or such other form as may be required by any prospective mortgagee
or purchaser of the Project, or any portion thereof), indicating therein any exceptions thereto that may exist at that time, and shall also contain any other information reasonably requested by Landlord or Landlord’s mortgagee or prospective
mortgagee. Any such certificate may be relied upon by any prospective mortgagee or purchaser of all or any portion of the Project. Tenant shall execute and deliver whatever other instruments may be reasonably required for such purposes. At any time
during the Lease Term, Landlord may require Tenant to provide Landlord with a current financial statement and financial statements of the two (2) years prior to the current financial statement year. Such statements shall be prepared in accordance
with generally accepted accounting principles and, if such is the normal practice of Tenant, shall be audited by an independent certified public accountant. Failure of Tenant to timely execute, acknowledge and deliver such estoppel certificate or
other instruments shall constitute an acceptance of the Premises and an acknowledgment by Tenant that statements included in the estoppel certificate are true and correct, without exception. 
  
 ARTICLE 18 
  
 SUBORDINATION 
  
 This Lease shall be subject and subordinate to all present and future ground or underlying leases of the Building or Project and to the lien of any
mortgage, trust deed or other encumbrances now or hereafter in force against the Building or Project or any part thereof, if any, and to all renewals, extensions, modifications. 

  

 -23- 

 
consolidations and replacements thereof, and to all advances made or hereafter to be made upon the security of such mortgages or trust deeds, unless the
holders of such mortgages, trust deeds or other encumbrances, or the lessors under such ground lease or underlying leases, require in writing that this Lease be superior thereto. A condition precedent to the subordination of this Lease to any future
ground or underlying lease or to the lien of any future mortgage or deed of trust is that Landlord shall obtain for the benefit of Tenant a commercially reasonable subordination, non-disturbance and attornment agreement from the lessor or lender of
such future instrument. Tenant covenants and agrees in the event any proceedings are brought for the foreclosure of any such mortgage or deed in lieu thereof (or if any ground lease is terminated), to attorn, without any deductions or set-offs
whatsoever, to the lienholder or purchaser or any successors thereto upon any such foreclosure sale or deed in lieu thereof (or to the ground lessor), if so requested to do so by such purchaser or lienholder or ground lessor, and to recognize such
purchaser or lienholder or ground lessor as the lessor under this Lease, provided such lienholder or purchaser or ground lessor shall agree to accept this Lease and not disturb Tenant’s occupancy, so long as Tenant timely pays the rent and
observes and performs the terms, covenants and conditions of this Lease to be observed and performed by Tenant. Landlord’s interest herein may be assigned as security at any time to any lienholder. Tenant shall, within five (5) days of request
by Landlord, execute such further instruments or assurances as Landlord may reasonably deem necessary to evidence or confirm the subordination or superiority of this Lease to any such mortgages, trust deeds, ground leases or underlying leases.
Tenant waives the provisions of any current or future statute, rule or law which may give or purport to give Tenant any right or election to terminate or otherwise adversely affect this Lease and the obligations of the Tenant hereunder in the event
of any foreclosure proceeding or sale. 
  
 ARTICLE 19 

 
 DEFAULTS; REMEDIES 
  
 19.1 Events of Default. The occurrence of any of the following shall
constitute a default of this Lease by Tenant: 
  
 19.1 .1 Any
failure by Tenant to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, when due unless such failure is cured within three (3) days after notice; or 
  
 19.1.2 Except where a specific time period is otherwise set forth for
Tenant’s performance in this Lease, in which event the failure to perform by Tenant within such time period shall be a default by Tenant under this Section 19.1.2, any failure by Tenant to observe or perform any other provision, covenant or
condition of this Lease to be observed or performed by Tenant where such failure continues for ten (10) days after written notice thereof from Landlord to Tenant; provided that if the nature of such default is such that the same cannot reasonably be
cured within a ten (10) day period, Tenant shall not be deemed to be in default if it diligently commences such cure within such period and thereafter diligently proceeds to rectify and cure such default, but in no event exceeding a period of time
in excess of thirty (30) days after written notice thereof from Landlord to Tenant; or 
  
 19.1.3 To the extent permitted by law, a general assignment by Tenant or any guarantor of this Lease for the benefit of creditors, or the taking of any corporate action in furtherance of bankruptcy or dissolution
whether or not there exists any proceeding under an insolvency or bankruptcy law, or the filing by or against Tenant or any guarantor of any proceeding under an insolvency or bankruptcy law, unless in the case of a proceeding filed against Tenant or
any guarantor the same is dismissed within sixty (60) days, or the appointment of a trustee or receiver to take possession of all or substantially all of the assets of Tenant or any guarantor, unless possession is restored to Tenant or such
guarantor within thirty (30) days, or any execution or other judicially authorized seizure of all or substantially all of Tenant’s assets located upon the Premises or of Tenant’s interest in this Lease, unless such seizure is discharged
within thirty (30) days; or 
  
 19.1.4 Abandonment or vacation of
all or a substantial portion of the Premises by Tenant; or 
  
 19.1.5 The failure by Tenant to observe or perform according to the provisions of Articles 5, 14, 17 or 18 of this Lease where such failure continues for more than two (2) business days after notice from Landlord; or 

  

 -24- 

 19.1.6 Tenant’s failure to occupy the Premises within ten (10) business days after the Lease
Commencement Date. 
  
 The notice periods provided herein are in
lieu of, and not in addition to, any notice periods provided by law. 
  
 19.2 Remedies Upon Default. Upon the occurrence of any event of default by Tenant, Landlord shall have, in addition to any other remedies available to Landlord at law or in equity (all of which remedies shall be distinct, separate
and cumulative), the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever. 
  
 19.2.1 Terminate this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails
to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or
any part thereof, without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant the following: 
  
 (i) The worth at the time of award of any unpaid rent which has been earned at the time of such termination; plus 
  
 (ii) The worth at the time of award of the amount by which the unpaid rent
which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 
  
 (iii) The worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the
time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 
  
 (iv) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under
this Lease or which in the ordinary course of things would be likely to result therefrom, specifically including but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the Premises or any portion thereof
for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; and 
  
 (v) At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law.

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

 -25- 

 19.3 Subleases of Tenant. Whether or not Landlord elects to terminate this Lease on account of any
default by Tenant, as set forth in this Article 19, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in
Landlord’s sole discretion, succeed to Tenant’s interest in such subleases, licenses, concessions or arrangements. In the event of Landlord’s election to succeed to Tenant’s interest in any such subleases, licenses, concessions
or arrangements, Tenant shall, as of the date of notice by Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder. 
  
 19.4 Form of Payment After Default. Following the occurrence of an event of default by Tenant, Landlord shall have
the right to require that any or all subsequent amounts paid by Tenant to Landlord hereunder, whether to cure the default in question or otherwise, be paid in the form of cash, money order, cashier’s or certified check drawn on an institution
acceptable to Landlord, or by other means approved by Landlord, notwithstanding any prior practice of accepting payments in any different form. 
  
 19.5 Efforts to Relet. No re-entry or repossession, repairs, maintenance, changes, alterations and additions, reletting, appointment of a receiver
to protect Landlord’s interests hereunder, or any other action or omission by Landlord shall be construed as an election by Landlord to terminate this Lease or Tenant’s right to possession, or to accept a surrender of the Premises, nor
shall same operate to release Tenant in whole or in part from any of Tenant’s obligations hereunder, unless express written notice of such intention is sent by Landlord to Tenant. Tenant hereby irrevocably waives any right otherwise available
under any law to redeem or reinstate this Lease. 
  
 ARTICLE 20

  
 COVENANT OF QUIET ENJOYMENT 
  
 Landlord covenants that Tenant, on paying the Rent, charges for services and
other payments herein reserved and on keeping, observing and performing all the other terms, covenants, conditions, provisions and agreements herein contained on the part of Tenant to be kept, observed and performed, shall, during the Lease Term,
peaceably and quietly have, hold and enjoy the Premises subject to the terms, covenants, conditions, provisions and agreements hereof without interference by any persons lawfully claiming by or through Landlord. The foregoing covenant is in lieu of
any other covenant express or implied. 
  
 ARTICLE 21 

 
 SECURITY DEPOSIT 
  
 Concurrent with Tenant’s execution of this Lease, Tenant shall deposit
with Landlord a security deposit (the “Security Deposit”) in the amount set forth in Section 8 of the Summary, as security for the faithful performance by Tenant of all of its obligations under this Lease. If Tenant defaults with respect
to any provisions of this Lease, including, but not limited to, the provisions relating to the payment of Rent, the removal of property and the repair of resultant damage, Landlord may, without notice to Tenant, but shall not be required to apply
all or any part of the Security Deposit for the payment of any Rent or any other sum in default and Tenant shall, upon demand therefor, restore the Security Deposit to its original amount. Any unapplied portion of the Security Deposit shall be
returned to Tenant, or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, within sixty (60) days following the expiration of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit.
Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, or any successor statute. 
  

 -26- 

 ARTICLE 22 
  
 SUBSTITUTION OF OTHER PREMISES 
  
 Landlord shall have the right to move Tenant to other ground floor space in the Project comparable to the Premises, and all terms hereof shall apply to
the new space with equal force. In such event, Landlord shall give Tenant prior notice, shall provide Tenant, at Landlord’s sole cost and expense, with tenant improvements at least equal in quality to those in the Premises and shall move
Tenant’s effects to the new space at Landlord’s sole cost and expense at such time and in such manner as to inconvenience Tenant as little as reasonably practicable. Simultaneously with such relocation of the Premises, the parties shall
immediately execute an amendment to this Lease stating the relocation of the Premises. 
  
 ARTICLE 23 
  
 SIGNS 

 
 23.1 Full Floors. Subject to Landlord’s prior written
approval, in its sole discretion, and provided all signs are in keeping with the quality, design and style of the Building and Project, Tenant, if the Premises comprise an entire floor of the Building, at its sole cost and expense, may install
identification signage anywhere in the Premises including in the elevator lobby of the Premises, provided that such signs must not be visible from the exterior of the Building. 
  
 23.2 Multi-Tenant Floors. If other tenants occupy space on the floor on which the Premises is located, Tenant’s
identifying signage shall be provided by Landlord, at Tenant’s cost, and such signage shall be comparable to that used by Landlord for other similar floors in the Building and shall comply with Landlord’s Building standard signage program.

  
 23.3 Prohibited Signage and Other Items. Any signs,
notices, logos, pictures, names or advertisements which are installed and that have not been separately approved by Landlord may be removed without notice by Landlord at the sole expense of Tenant. Tenant may not install any signs on the exterior or
roof of the Project or the Common Areas. Any signs, window coverings, or blinds (even if the same are located behind the Landlord-approved window coverings for the Building), or other items visible from the exterior of the Premises or Building,
shall be subject to the prior approval of Landlord, in its sole discretion. 
  
 23.4 Building Directory. At Tenant’s cost, Landlord shall include Tenant’s name and location in the Building on one (1) line on the Building directory. 
  
 23.5 Exterior Signage. At any time after the Lease Commencement Date,
Landlord shall have the right, at Landlord’s sole cost and expense, to remove Tenant’s Building top sign existing on the exterior of the Building as of the date hereof (but not Tenant’s existing eyebrow sign (which Landlord shall not
have the right to remove except as otherwise provided below)), which Building top sign rights (and eyebrow sign rights) were previously granted to Tenant under the Existing Lease. Landlord acknowledges and agrees that in the event Landlord exercises
such right, and subject to the approval of all applicable governmental and quasi- governmental entities, and subject to all applicable governmental and quasi- governmental laws, rules, regulations and codes and covenants, conditions and restrictions
affecting the Project, Landlord shall grant Tenant the non-exclusive right to have one (1) identification sign (“Tenant’s Name Sign”) containing the name “First National Bank” on the monument sign located adjacent to the
Building that is reserved for the tenants of the Project (the “Monument Sign”). The design, size, specifications, graphics, materials, colors and lighting (if applicable) of Tenant’s Name Sign on the Monument Sign shall be (i)
consistent with the other signs (if any) to be placed on the Monument Sign and the quality and appearance of the Project, and (ii) subject to the approval of all applicable governmental authorities, and Landlord’s reasonable approval. Landlord
shall install Tenant’s Name Sign on the Monument Sign at Tenant’s cost. In addition. Tenant shall pay to Landlord, within thirty (30) days after demand, from time to time, all other costs attributable to the fabrication, installation,
insurance, lighting (if applicable), maintenance and repair of Tenant’s Name Sign on the Monument Sign. Landlord shall have the right to relocate, redesign and/or reconstruct the Monument Sign from time to time. The signage rights granted to
Tenant under this Section 23.5, as well as Tenant’s existing Building top, sign rights and eyebrow sign rights, are personal to the Original Tenant executing this 

  

 -27- 

 
Lease and any Affiliate of the Original Tenant’s entire interest in this Lease and may not be exercised or used by or assigned to any other person or
entity. In addition, Tenant shall no longer have any right to Tenant’s Building top sign and eyebrow sign if at any time during the Lease Term the Original Tenant or any Affiliate of the Original Tenant’s entire interest in this Lease does
not lease and occupy eighty percent (80%) of the Premises. Upon termination or expiration of the Lease, or upon the earlier termination of Tenant’s sign rights under this Section 23.5, Landlord shall have the right to permanently remove
Tenant’s Name Sign from the Monument Sign and to repair all damage to the Monument Sign resulting from such removal, and Tenant shall reimburse Landlord for the costs thereof. 
  
 ARTICLE 24 
  
 COMPLIANCE WITH LAW 
  
 Tenant shall not do anything or suffer anything to be done in or about the Premises or the Project which will in any way conflict with any law, statute,
ordinance or other governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated. At its sole cost and expense, Tenant shall promptly comply with all such governmental measures. Should any standard or
regulation now or hereafter be imposed on Landlord or Tenant by a state, federal or local governmental body charged with the establishment, regulation and enforcement of occupational, health or safety standards for employers, employees, landlords or
tenants, then Tenant agrees, at its sole cost and expense, to comply promptly with such standards or regulations. Tenant shall be responsible, at its sole cost and expense, to make all alterations to the Premises as are required to comply with the
governmental rules, regulations, requirements or standards described in this Article 24. The judgment of any court of competent jurisdiction or the admission of Tenant in any judicial action, regardless of whether Landlord is a party thereto, that
Tenant has violated any of said governmental measures, shall be conclusive of that fact as between Landlord and Tenant. 
  
 ARTICLE 25 
  
 LATE CHARGES 
  
 If any installment of Rent or any other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) days after said amount is due, then Tenant shall pay to Landlord a late charge equal to ten percent
(10%) of the overdue amount plus any attorneys’ fees incurred by Landlord by reason of Tenant’s failure to pay Rent and/or other charges when due hereunder. The late charge shall be deemed Additional Rent and the right to require it shall
be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall not be construed as liquidated damages or as limiting Landlord’s remedies in any manner. In addition to the late charge described above, any Rent
or other amounts owing hereunder which are not paid within ten (10) days after the date they are due shall bear interest from the date when due until paid at a rate per annum equal to the lesser of (i) the annual “Bank Prime Loan” rate
cited in the Federal Reserve Statistical Release Publication G.13(415), published on the first Tuesday of each calendar month (or such other comparable index as Landlord shall reasonably select if such rate ceases to be published) plus four (4)
percentage points, and (ii) the highest rate permitted by applicable law. 
  
 ARTICLE 26 
  
 LANDLORD’S
RIGHT TO CURE DEFAULT: PAYMENTS BY TENANT 
  
 26.1
Landlord’s Cure. All covenants and agreements to be kept or performed by Tenant under this Lease shall be performed by Tenant at Tenant’s sole cost and expense and without any reduction of Rent, except to the extent, if any,
otherwise expressly provided herein. If Tenant shall fail to perform any obligation under this Lease, and such failure shall continue in excess of the time allowed under Section 19.1.2, above, unless a specific time period is otherwise stated in
this Lease, Landlord may, but shall not be obligated to, make any such payment or perform any such act on Tenant’s part without waiving its rights based upon any default of Tenant and without releasing Tenant from any obligations hereunder.

  

 -28- 

 26.2 Tenant’s Reimbursement. Except as may be specifically provided to the contrary in this
Lease, Tenant shall pay to Landlord, upon delivery by Landlord to Tenant of statements therefor: (i) sums equal to expenditures reasonably made and obligations incurred by Landlord in connection with the remedying by Landlord of Tenant’s
defaults pursuant to the provisions of Section 26.1; (ii) sums equal to all losses, costs, liabilities, damages and expenses referred to in Article 10 of this Lease; and (iii) sums equal to all expenditures made and obligations incurred by Landlord
in collecting or attempting to collect the Rent or in enforcing or attempting to enforce any rights of Landlord under this Lease or pursuant to law, including, without limitation, all legal fees and other amounts so expended. Tenant’s
obligations under this Section 26.2 shall survive the expiration or sooner termination of the Lease Term. 
  
 ARTICLE 27 
  
 ENTRY BY LANDLORD 
  
 Landlord reserves the right at all
reasonable times and upon reasonable notice to Tenant (except in the case of an emergency) to enter the Premises to (i) inspect them; (ii) show the Premises to prospective purchasers, mortgagees or tenants, or to current or prospective mortgagees,
ground or underlying lessors or insurers; (iii) post notices of nonresponsibility; or (iv) alter, improve or repair the Premises or the Building, or for structural alterations, repairs or improvements to the Building or the Building’s systems
and equipment. Notwithstanding anything to the contrary contained in this Article 27, Landlord may enter the Premises at any time to (A) perform services required of Landlord, including janitorial service; (B) take possession due to any breach of
this Lease in the manner provided herein; and (C) perform any covenants of Tenant which Tenant fails to perform. Landlord may make any such entries without the abatement of Rent and may take such reasonable steps as required to accomplish the stated
purposes. Tenant hereby waives any claims for damages or for any injuries or inconvenience to or interference with Tenant’s business, lost profits, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby.
For each of the above purposes, Landlord shall at all times have a key with which to unlock all the doors in the Premises, excluding Tenant’s vaults, safes and special security areas designated in advance by Tenant. In an emergency, Landlord
shall have the right to use any means that Landlord may deem proper to open the doors in and to the Premises. Any entry into the Premises by Landlord in the manner hereinbefore described shall not be deemed to be a forcible or unlawful entry into,
or a detainer of, the Premises, or an actual or constructive eviction of Tenant from any portion of the Premises. No provision of this Lease shall be construed as obligating Landlord to perform any repairs, alterations or decorations except as
otherwise expressly agreed to be performed by Landlord herein. 
  
 ARTICLE 28 
  
 TENANT PARKING 
  
 Tenant shall have the right to rent from Landlord (but not the obligation),
commencing on the Lease Commencement Date, the amount of unreserved and reserved parking spaces set forth in Section 12 of the Summary, on a monthly basis throughout the Lease Term, which parking spaces shall pertain to the Project parking facility.
Tenant shall pay to Landlord for automobile parking spaces on a monthly basis the prevailing rate charged from time to time at the location of such parking spaces. As of the date hereof, (i) the prevailing rate for each reserved parking space is One
Hundred Fifty Dollars ($150.00) for each reserved space, per month and (ii) the prevailing rate for each unreserved space is Fifty Dollars ($50.00) for each unreserved space, per month, which initial rates are subject to adjustment from time to time
by Landlord throughout the Lease Term. In addition, Tenant shall be responsible for the full amount of any taxes imposed by any governmental authority in connection with the renting of such parking spaces by Tenant or the use of the parking facility
by Tenant. Tenant’s continued right to use the parking spaces is conditioned upon Tenant abiding by all rules and regulations which are prescribed from time to time for the orderly operation and use of the parking facility where the parking
spaces are located, including any sticker or other identification system established by Landlord. Tenant’s cooperation in seeing that Tenant’s employees and visitors also comply with such rules and regulations and Tenant not being in
default under this Lease. Landlord specifically reserves the right to change the size, configuration, design, layout and all other aspects of the Project parking facility at any time and Tenant acknowledges and agrees that Landlord may, without
incurring any liability to Tenant and without any abatement of Rent under this Lease, from time to time, close-off or restrict access to the Project parking facility for purposes of permitting or facilitating any such construction, alteration or

  

 -29- 

 
improvements. Landlord may delegate its responsibilities hereunder to a parking operator in which case such parking operator shall have all the rights of
control attributed hereby to the Landlord. The parking spaces rented by Tenant pursuant to this Article 28 are provided to Tenant solely for use by Tenant’s own personnel and such right to use such spaces may not be transferred, assigned,
subleased or otherwise alienated by Tenant without Landlord’s prior approval. Tenant may validate visitor parking by such method or methods as the Landlord may establish, at the validation rate from time to time generally applicable to visitor
parking. 
  
 ARTICLE 29 
  
 MISCELLANEOUS PROVISIONS 
  
 29.1 Terms: Captions. The words “Landlord” and
“Tenant” as used herein shall include the plural as well as the singular. The necessary grammatical changes required to make the provisions hereof apply either to corporations or partnerships or individuals, men or women, as the case may
require, shall in all cases be assumed as though in each case fully expressed. The captions of Articles and Sections are for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of such Articles and Sections.

  
 29.2 Binding Effect. Subject to all other provisions of
this Lease, each of the covenants, conditions and provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit not only of Landlord and of Tenant, but also of their respective heirs, personal
representatives, successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of Article 14 of this Lease. 
  

29.3 No Air Rights. No rights to any view or to light or air over any property, whether belonging to Landlord or any other person, are granted
to Tenant by this Lease. If at any time any windows of the Premises are temporarily darkened or the light or view therefrom is obstructed by reason of any repairs, improvements, maintenance or cleaning in or about the Project, the same shall be
without liability to Landlord and without any reduction or diminution of Tenant’s obligations under this Lease. 
  
 29.4 Modification of Lease. Should any current or prospective mortgagee or ground lessor for the Building or Project require a modification of this
Lease, which modification will not cause an increased cost or expense to Tenant or in any other way materially and adversely change the rights and obligations of Tenant hereunder, then and in such event. Tenant agrees that this Lease may be so
modified and agrees to execute whatever documents are reasonably required therefor and to deliver the same to Landlord within ten (10) days following a request therefor. At the request of Landlord or any mortgagee or ground lessor, Tenant agrees to
execute a short form of Lease and deliver the same to Landlord within ten (10) days following the request therefor. 
  
 29.5 Transfer of Landlord’s Interest. Tenant acknowledges that Landlord has the right to transfer all or any portion of its interest in the
Project or Building and in this Lease, and Tenant agrees that in the event of any such transfer, Landlord shall automatically be released from all liability under this Lease and Tenant agrees to look solely to such transferee for the performance of
Landlord’s obligations hereunder after the date of transfer and such transferee shall be deemed to have fully assumed and be liable for all obligations of this Lease to be performed by Landlord, including the return of any Security Deposit, and
Tenant shall attorn to such transferee. Tenant further acknowledges that Landlord may assign its interest in this Lease to a mortgage lender as additional security and agrees that such an assignment shall not release Landlord from its obligations
hereunder and that Tenant shall continue to look to Landlord for the performance of its obligations hereunder. 
  
 29.6 Prohibition Against Recording. Except as provided in Section 29.4 of this Lease, neither this Lease, nor any memorandum, affidavit or other
writing with respect thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant. 
  
 29.7 Landlord’s Title. Landlord’s title is and always shall be paramount to the title of Tenant. Nothing herein contained shall empower
Tenant to do any act which can, shall or may encumber the title of Landlord. 
  

 -30- 

 29.8 Relationship of Parties. Nothing contained in this Lease shall be deemed or construed by the
parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venturer or any association between Landlord and Tenant. 
  
 29.9 Application of Payments. Landlord shall have the right to apply payments received from Tenant pursuant to this
Lease, regardless of Tenant’s designation of such payments, to satisfy any obligations of Tenant hereunder, in such order and amounts as Landlord, in its sole discretion, may elect. 
  
 29.10 Time of Essence. Time is of the essence with respect to the performance of every provision of this Lease in
which time of performance is a factor. 
  
 29.11 Partial
Invalidity. If any term, provision or condition contained in this Lease shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, provision or condition to persons or circumstances other
than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this Lease shall be valid and enforceable to the fullest extent possible permitted by law.

  
 29.12 No Warranty. In executing and delivering this
Lease, Tenant has not relied on any representations, including, but not limited to, any representation as to the amount of any item comprising Additional Rent or the amount of the Additional Rent in the aggregate or that Landlord is furnishing the
same services to other tenants, at all, on the same level or on the same basis, or any warranty or any statement of Landlord which is not set forth herein or in one or more of the exhibits attached hereto. 
  
 29.13 Landlord Exculpation. The liability of Landlord or the Landlord
Parties to Tenant for any default by Landlord under this Lease or arising in connection herewith or with Landlord’s operation, management, leasing, repair, renovation, alteration or any other matter relating to the Project or the Premises shall
be limited solely and exclusively to an amount which is equal to the equity interest of Landlord in the Building, provided that in no event shall such liability extend to any sales or insurance proceeds received by Landlord or the Landlord Parties
in connection with the Project, Building or Premises. Neither Landlord, nor any of the Landlord Parties shall have any personal liability therefor, and Tenant hereby expressly waives and releases such personal liability on behalf of itself and all
persons claiming by, through or under Tenant. The limitations of liability contained in this Section 29.13 shall inure to the benefit of Landlord’s and the Landlord Parties’ present and future partners, beneficiaries, officers, directors,
trustees, shareholders, agents and employees, and their respective partners, heirs, successors and assigns. Under no circumstances shall any present or future partner of Landlord (if Landlord is a partnership), or trustee or beneficiary (if Landlord
or any partner of Landlord is a trust), have any liability for the performance of Landlord’s obligations under this Lease. Notwithstanding any contrary provision herein, neither Landlord nor the Landlord Parties shall be liable under any
circumstances for injury or damage to, or interference with, Tenant’s business, including but not limited to, loss of profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use, in each case, however
occurring. 
  
 29.14 Entire Agreement. It is understood and
acknowledged that there are no oral agreements between the parties hereto affecting this Lease and this Lease constitutes the parties’ entire agreement with respect to the leasing of the Premises and supersedes and cancels any and all previous
negotiations, arrangements, brochures, agreements and understandings, if any, between the parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this
Lease. None of the terms, covenants, conditions or provisions of this Lease can be modified, deleted or added to except in writing signed by the parties hereto. 
  

29.15 Right to Lease. Landlord reserves the absolute right to effect such other tenancies in the Project as Landlord in the exercise of its sole
business judgment shall determine to best promote the interests of the Building or Project. Tenant does not rely on the fact, nor does Landlord represent, that any specific tenant or type or number of tenants shall, during the Lease Term, occupy any
space in the Building or Project. 
  
 29.16 Force Majeure.
Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, fire or other casualty, and other
causes beyond the reasonable control of the party obligated to perform. 
  

 -31- 

 
except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant pursuant to this Lease and except as to
Tenant’s obligations under Articles 5 and 24 of this Lease (collectively, a “Force Majeure”), notwithstanding anything to the contrary contained in this Lease, shall excuse the performance of such party for a period equal to any such
prevention, delay or stoppage and, therefore, if this Lease specifies a time period for performance of an obligation of either party, that time period shall be extended by the period of any delay in such party’s performance caused by a Force
Majeure. 
  
 29.17 Waiver of Redemption bv Tenant. Tenant
hereby waives, for Tenant and for all those claiming under Tenant, any and all rights now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ, Tenant’s right of occupancy of the Premises after any
termination of this Lease. 
  
 29.18 Notices. All notices,
demands, statements, designations, approvals or other communications (collectively, “Notices”) given or required to be given by either party to the other hereunder or by law shall be (A) delivered personally, (B) delivered by a nationally
recognized overnight courier, (C) sent by United States certified or registered mail, postage prepaid, return receipt requested (“Mail”), or (D) transmitted by telecopy, if such telecopy is promptly followed by a Notice sent by a
nationally recognized overnight courier. Any Notice shall be sent, transmitted, or delivered, as the case may be, to Tenant at the appropriate address set forth in Section 9 of the Summary, or to such other place as Tenant may from time to time
designate in a Notice to Landlord, or to Landlord at the addresses set forth below, or to such other places as Landlord may from time to time designate in a Notice to Tenant. Any Notice will be deemed given (i) the date personal delivery is made or
attempted to be made, (ii) the date the overnight courier delivery is made, or (iii) the date the telecopy is transmitted, (i) three (3) days after the date it is posted if sent by Mail, (ii) the date the telecopy is transmitted, or (iii) the date
the overnight courier delivery is made, or (iv) three (3) days after the date it is posed if sent by Mail. If Tenant is notified of the identity and address of Landlord’s mortgagee or ground or underlying lessor, Tenant shall give to such
mortgagee or ground or underlying lessor written notice of any default by Landlord under the terms of this Lease by registered or certified mail, and such mortgagee or ground or underlying lessor shall be given a reasonable opportunity to cure such
default prior to Tenant’s exercising any remedy available to Tenant. As of the date of this Lease, any Notices to Landlord must be sent, transmitted, or delivered, as the case may be, to the following addresses: 
  
 U.S. Property Fund GmbH & Co. KG 
 c/o TMW Real Estate Management, Inc. 
 Two
Ravinia Drive, Suite 400 
 Atlanta, Georgia 30346-2104 
 Attention: Director of Asset Management 
  
 and 
  
 PM Realty Group

 4225 Executive Square, Suite 920 
 San Diego, California 92037 
 Attention: Property Manager 
  
 and 
  
 Allen Matkins Leck Gamble & Mallory LLP 
 1999 Avenue of the Stars, Suite 1800 
 Los Angeles, California 90067 
 Attention: John M. Tipton. Esq. 
  
 Payment of all Rent payable by Tenant under this Lease shall be sent to the following address (“Payment Address”) or to such other place as Landlord may from
time to time designate in a Notice to Tenant: 
  
 La Jolla

 P.O. Box 931938 
 Atlanta,
Georgia 31193-1938 
  

 -32- 

 29.19 Joint and Several. If there is more than one Tenant, the obligations imposed upon Tenant
under this Lease shall be joint and several. 
  
 29.20
Authority. If Tenant is a corporation, trust or partnership, each individual executing this Lease on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in California and
that Tenant has full right and authority to execute and deliver this Lease and that each person signing on behalf of Tenant is authorized to do so. In such event, Tenant shall, within ten (10) days after execution of this Lease, deliver to Landlord
satisfactory evidence of such authority and, if a corporation, upon demand by Landlord, also deliver to Landlord satisfactory evidence of (i) good standing in Tenant’s state of incorporation and (ii) qualification to do business in California.

  
 29.21 Attorneys’ Fees. In the event that either
Landlord or Tenant should bring suit for the possession of the Premises, for the recovery of any sum due under this Lease, or because of the breach of any provision of this Lease or for any other relief against the other, then all costs and
expenses, including reasonable attorneys’ fees, incurred by the prevailing party therein shall be paid by the other party, which obligation on the part of the other party shall be deemed to have accrued on the date of the commencement of such
action and shall be enforceable whether or not the action is prosecuted to judgment. 
  
 29.22 Governing Law: WAIVER OF TRIAL BY JURY. This Lease shall be construed and enforced in accordance with the laws of the State of California. IN ANY ACTION OR PROCEEDING ARISING HEREFROM, LANDLORD AND TENANT
HEREBY CONSENT TO (I) THE JURISDICTION OF ANY COMPETENT COURT WITHIN THE STATE OF CALIFORNIA, (II) SERVICE OF PROCESS BY ANY MEANS AUTHORIZED BY CALIFORNIA LAW, AND (III) IN THE INTEREST OF SAVING TIME AND EXPENSE, TRIAL WITHOUT A JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR THEIR SUCCESSORS IN-RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANTS USE OR
OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM FOR INJURY OR DAMAGE, OR ANY EMERGENCY OR STATUTORY REMEDY. IN THE EVENT LANDLORD COMMENCES ANY SUMMARY PROCEEDINGS OR ACTION FOR NONPAYMENT OF BASE RENT OR ADDITIONAL RENT, TENANT SHALL NOT INTERPOSE ANY
COUNTERCLAIM OF ANY NATURE OR DESCRIPTION (UNLESS SUCH COUNTERCLAIM SHALL BE MANDATORY) IN ANY SUCH PROCEEDING OR ACTION, BUT SHALL BE RELEGATED TO AN INDEPENDENT ACTION AT LAW. 
  
 29.23 Submission of Lease. Submission of this instrument for examination or signature by Tenant does not constitute a
reservation of, option for or option to lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord and Tenant. 
  
 29.24 Brokers. Landlord and Tenant hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection
with the negotiation of this Lease, excepting only the real estate brokers or agents specified in Section 11 of the Summary (the “Brokers”), and that they know of no other real estate broker or agent who is entitled to a commission in
connection with this Lease. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses (including without
limitation reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of any dealings with any real estate broker or agent, other than the Brokers, occurring by, through, or
under the indemnifying party. 
  
 29.25 Independent
Covenants. This Lease shall be construed as though the covenants herein between Landlord and Tenant are independent and not dependent and Tenant hereby expressly waives the benefit of any statute to the contrary and agrees that if Landlord fails
to perform its obligations set forth herein, Tenant shall not be entitled to make any repairs or perform any acts hereunder at Landlord’s expense or to any setoff of the Rent or other amounts owing hereunder against Landlord. 
  
 29.26 Project or Building Name and Signage. Subject to Tenant’s
exterior sign rights described in Section 23.5 hereof, Landlord shall have the right at any time to change the name of the Project or Building and to install, affix and maintain any and all signs on the exterior and on the interior of the Project or
Building as Landlord may, in Landlord’s sole discretion, desire. Tenant shall not use the name of the Project or Building or use pictures or illustrations of the Project or Building in advertising or other publicity or for any purpose other
than as the address of the business to be conducted by Tenant in the Premises, without the prior written consent of Landlord. 
  

 -33- 

 29.27 Counterparts. This Lease may be executed in counterparts with the same effect as if both
parties hereto had executed the same document. Both counterparts shall be construed together and shall constitute a single lease. 
  
 29.28 Confidentiality. Tenant acknowledges that the content of this Lease and any related documents are confidential information. Tenant shall keep
such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other than Tenant’s financial, legal, and space planning consultants and except to extent disclosure is required to
comply with applicable laws. 
  
 29.29 Transportation
Management. Tenant shall fully comply with all present or future programs intended to manage parking, transportation or traffic in and around the Building, and in connection therewith, Tenant shall take responsible action for the transportation
planning and management of all employees located at the Premises by working directly with Landlord, any governmental transportation management organization or any other transportation-related committees or entities. 
  
 29.30 Building Renovations. It is specifically understood and agreed
that Landlord has made no representation or warranty to Tenant and has no obligation and has made no promises to alter, remodel, improve, renovate, repair or decorate the Premises, Building, or any part thereof and that no representations respecting
the condition of the Premises or the Building have been made by Landlord to Tenant except as specifically set forth herein or in the Tenant Work Letter. However, Tenant hereby acknowledges that Landlord is currently renovating or may during the
Lease Term renovate, improve, alter, or modify (collectively, the “Renovations”) the Project, the Building and/or the Premises including without limitation the parking structure, common areas, systems and equipment, roof, and structural
portions of the same, which Renovations may include, without limitation, (i) installing sprinklers in the Building common areas and tenant spaces, (ii) modifying the common areas and tenant spaces to comply with applicable laws and regulations,
including regulations relating to the physically disabled, seismic conditions, and building safety and security, and (iii) installing new floor covering, lighting, and wall coverings in the Building common areas, and in connection with any
Renovations, Landlord may, among other things, erect scaffolding or other necessary structures in the Building, limit or eliminate access to portions of the Project, including portions of the common areas, or perform work in the Building, which work
may create noise, dust or leave debris in the Building. Tenant hereby agrees that such Renovations and Landlord’s actions in connection with such Renovations shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any
abatement of Rent. Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant’s business arising from the Renovations, nor shall Tenant be entitled to any
compensation or damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant’s personal property or improvements resulting from the Renovations or Landlord’s actions in connection with such Renovations,
or for any inconvenience or annoyance occasioned by such Renovations or Landlord’s actions. 
  
 29.31 No Violation. Tenant hereby warrants and represents that neither its execution of nor performance under this Lease shall cause Tenant to be
in violation of any agreement, instrument, contract, law, rule or regulation by which Tenant is bound, and Tenant shall protect, defend, indemnify and hold Landlord harmless against any claims, demands, losses, damages, liabilities, costs and
expenses, including, without limitation, reasonable attorneys’ fees and costs, arising from Tenant’s breach of this warranty and representation. 
  
 29.32 Communications and Computer Lines. Tenant may install, maintain, replace, remove or use any communications or computer wires and cables
(collectively, the “Lines”) at the Project in or serving the Premises, provided that (i) Tenant shall obtain Landlord’s prior written consent, use an experienced and qualified contractor approved in writing by Landlord, and comply
with all of the other provisions of Articles 7 and 8 of this Lease, (ii) an acceptable number of spare Lines and space for additional Lines shall be maintained for existing and future occupants of the Project, as determined in Landlord’s
reasonable opinion, (iii) the Lines therefor (including riser cables) shall be appropriately insulated to prevent excessive electromagnetic fields or radiation, and shall be surrounded by a protective conduit reasonably acceptable to Landlord, (iv)
any new or existing Lines servicing the Premises shall comply with all applicable governmental laws and regulations, (v) as a condition to permitting the installation of new Lines, Landlord may require that Tenant remove existing Lines located in or
serving the 

  

 -34- 

 
Premises and repair any damage in connection with such removal, and (vi) Tenant shall pay all costs in connection therewith. Landlord reserves the right to
require that Tenant remove any Lines located in or serving the Premises which are installed in violation of these provisions, or which are at any time in violation of any laws or represent a dangerous or potentially dangerous condition. 

 
 29.33 Office and Communications Services. 
  
 29.33.1 The Provider. Landlord has advised Tenant that certain office
and communications services may be offered to tenants of the Building by a concessionaire under contract to Landlord (“Provider”). In such event, Tenant shall be permitted to contract with Provider for the provision of any or all of such
services on such terms and conditions as Tenant and Provider may agree. 
  
 29.33.2 Other Terms. Tenant acknowledges and agrees that: (i) Landlord has made no warranty or representation to Tenant with respect to the availability of any such services, or the quality, reliability or suitability thereof; (ii)
the Provider is not acting as the agent or representative of Landlord in the provision of such services, and Landlord shall have no liability or responsibility for any failure or inadequacy of such services, or any equipment or facilities used in
the furnishing thereof, or any act or omission of Provider, or its agents, employees, representatives, officers or contractors; (iii) Landlord shall have no responsibility or liability for the installation, alteration, repair, maintenance,
furnishing, operation, adjustment or removal of any such services, equipment or facilities; and (iv) any contract or other agreement between Tenant and Provider shall be independent of this Lease, the obligations of Tenant hereunder, and the rights
of Landlord hereunder, and, without limiting the foregoing, no default or failure of Provider with respect to any such services, equipment or facilities, or under any contract or agreement relating thereto, shall have any effect on this Lease or
give to Tenant any offset or defense to the full and timely performance of its obligations hereunder, or entitle Tenant to any abatement of rent or additional rent or any other payment required to be made by Tenant hereunder, or constitute any
accrual or constructive eviction of Tenant, or otherwise give rise to any other claim of any nature against Landlord. 
  
 29.34 Termination of Existing Lease. Landlord and Tenant acknowledge and agree that effective as of the Commencement Date of this Lease,
Tenant’s Existing Lease shall terminate; provided, however, that Tenant acknowledges and agrees that Tenant shall continue to be liable under the Existing Lease for those obligations under the Existing Lease that are intended to survive
termination including, without limitation, Tenant’s indemnity obligations and Tenant’s reconciliation obligations for operating expenses under the Existing Lease, all of which obligations Tenant acknowledges and agrees shall survive the
expiration of the Existing Lease. 
  
 IN WITNESS WHEREOF, Landlord
and Tenant have caused this Lease to be executed the day and date first above written. 
  

	 “Landlord”:

	
	 U.S. PROPERTY FUND GMBH & CO. KG, a German
 limited
partnership

		
	 By:
	 	 TMW U.S. PROPERTY FUND MANAGEMENT
 GMBH, its sole general partner

			
	 	 	 By:
	 	 U.S. PROPERTY MANAGEMENT II, L.P.,
 its authorized agent

				
	 	 	 	 	By:	 	 TMW Management, LLC, its
 authorized agent

				
	 	 	 	 	By:	 	 /s/ Barry L. Howell

	 	 	 	 	 	 	 Name:
	 	 Barry L. Howell

	 	 	 	 	 	 	 Title :
	 	 Vice President

  

 -35- 

	 “Tenant”:

	
	 FIRST NATIONAL BANK,
 a national banking association

		
	 By:
	 	 [ILLEGIBLE]

	 	 	 Name: [ILLEGIBLE]

	 	 	 Title:   [ILLEGIBLE]

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  
  

 -36- 

 [GRAPHIC APPEARS HERE] 
  
 FIRST NATIONAL BANK 
  
 3,567 RENTABLE SQUARE FEET 
  
 3,242 USABLE SQUARE FEET 
  
 SUITE 150 
  
 EXHIBIT A 
  
 LA JOLLA EXECUTIVE TOWER 
 4225 EXECUTIVE SQUARE 
 LA JOLLA, CALIFORNIA 92037 
 LEVEL 1 

 EXHIBIT B 
  
 [INTENTIONALLY OMITTED] 
  

 EXHIBIT B 
 -1- 

 EXHIBIT C 
  
 LA JOLLA EXECUTIVE TOWER 
  
 FORM OF NOTICE OF LEASE TERM DATES 
  
 To:    _____________________ 
           _____________________ 
           _____________________ 
           _____________________ 
  

	 	Re:	Office Lease dated                     , 2000 between U.S. PROPERTY FUND
GMBH & CO. KG, a German limited partnership (“Landlord”), and FIRST NATIONAL BANK, a national banking association (“Tenant”) concerning Suite 150 on the first (1st) floor of the office building located at 4225 Executive
Square, San Diego, California. 

  
 Gentlemen: 
  
 In accordance with the Office Lease (the “Lease”), we wish to
advise you and/or confirm as follows: 
  

	 	1.	The Lease Term commenced on             , 2001 for a term of
             (        ) months              ending on
            . 

  

	 	2.	Rent commenced to accrue on             , 2001, in the amount of
             Dollars ($        ). The partial amount due for the month of
            , 2000 is              Dollars ($        ).

  

	 	3.	Your rent checks should be made payable to U.S. Property Fund GmbH & Co. KG, a German limited partnership, and mailed to: 

  

	 	    	La Jolla 

	 	    	P.O. Box 931938 

	 	    	Atlanta, Georgia 31193-1938 

  

	 	4.	The exact number of rentable/usable square feet within the Premises is              rentable square feet.

  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  

 EXHIBIT C 
 -1- 

	 	5.	Tenant’s Share as adjusted based upon the exact number of rentable square feet within the Premises is         %.

  

	 “Landlord”:

	
	 U.S. PROPERTY FUND GMBH & CO. KG, a German
 limited
partnership

		
	 By:
	 	 TMW U.S. PROPERTY FUND MANAGEMENT
 GMBH, its sole general partner ‘

			
	 	 	By:	 	 U.S. PROPERTY MANAGEMENT II, L.P.,
 its authorized agent

				
	 	 	 	 	 By:
	 	 TMW Management, LLC, its
 authorized agent

				
	 	 	 	 	By:	 	

	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 Title:

  

	 Agreed to and Accepted as of             ,
2000.

	
	 “Tenant”:

	
	 FIRST NATIONAL BANK,
 a national banking association

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  
  
  

 EXHIBIT C 
 -2- 

 EXHIBIT D 
  
 LA JOLLA EXECUTIVE TOWER 
  
 RULES AND REGULATIONS 
  
 Tenant shall faithfully observe and comply with the following Rules and Regulations. Landlord shall not be responsible to Tenant for the nonperformance of
any of said Rules and Regulations by or otherwise with respect to the acts or omissions of any other tenants or occupants of the Project. In the event of any conflict between the Rules and Regulations and the other provisions of this Lease, the
latter shall control. 
  
 1. Tenant shall not alter any lock or
install any new or additional locks or bolts on any doors or windows of the Premises without obtaining Landlord’s prior written consent. Tenant shall bear the cost of any lock changes or repairs required by Tenant. Two keys will be furnished by
Landlord for the Premises, and any additional keys required by Tenant must be obtained from Landlord at a reasonable cost to be established by Landlord. Upon the termination of this Lease, Tenant shall restore to Landlord all keys of stores,
offices, and toilet rooms, either furnished to, or otherwise procured by, Tenant and in the event of the loss of keys so furnished, Tenant shall pay to Landlord the cost of replacing same or of changing the lock or locks opened by such lost key if
Landlord shall deem it necessary to make such changes. 
  
 2. All
doors opening to public corridors shall be kept closed at all times except for normal ingress and egress to the Premises. 
  
 3. Landlord reserves the right to close and keep locked all entrance and exit doors of the Building during such hours as are customary for comparable
buildings in the University Towne Center submarket of San Diego, California. Tenant, its employees and agents must be sure that the doors to the Building are securely closed and locked when leaving the Premises if it is after the normal hours of
business for the Building. Any tenant, its employees, agents or any other persons entering or leaving the Building at any time when it is so locked, or any time when it is considered to be after normal business hours for the Building, may be
required to sign the Building register. Access to the Building may be refused unless the person seeking access has proper identification or has a previously arranged pass for access to the Building. Landlord will furnish passes to persons for whom
Tenant requests same in writing. Tenant shall be responsible for all persons for whom Tenant requests passes and shall be liable to Landlord for all acts of such persons. The Landlord and his agents shall in no case be liable for damages for any
error with regard to the admission to or exclusion from the Building of any person. In case of invasion, mob, riot, public excitement, or other commotion, Landlord reserves the right to prevent access to the Building or the Project during the
continuance thereof by any means it deems appropriate for the safety and protection of life and property. Landlord shall have the right to prohibit any use of the Building balconies by Tenant, its employees and agents. 
  
 4. No furniture, freight or equipment of any kind shall be brought into the
Building without prior notice to Landlord. All moving activity into or out of the Building shall be scheduled with Landlord and done only at such time and in such manner as Landlord designates. Landlord shall have the right to prescribe the weight,
size and position of all safes and other heavy property brought into the Building and also the times and manner of moving the same in and out of the Building. Safes and other heavy objects shall, if considered necessary by Landlord, stand on
supports of such thickness as is necessary to properly distribute the weight. Landlord will not be responsible for loss of or damage to any such safe or property in any case. Any damage to any part of the Building, its contents, occupants or
visitors by moving or maintaining any such safe or other property shall be the sole responsibility and expense of Tenant. The Building engineer must be in attendance during all move-ins and move-outs and for all deliveries of furniture and equipment
in order to install and remove elevator pads, lock off freight elevator, key off security system and generally oversee moving/delivery operation as appropriate. As of the date hereof, the hourly charge for the Building engineer is Thirty Dollars
($30.00) per hour, after hours, with a four (4) hour minimum, which rate is subject to increase from time to time after the date hereof; provided, however, that Landlord shall waive the imposition of such charge for Tenant’s initial move-in to
the Premises. The foregoing charge shall also apply to the moves of Tenant’s subtenants and/or assignees. 
  

 EXHIBIT D 
 -1- 

 5. No furniture, packages, supplies, equipment or merchandise will be received in the Building or carried
up or down in the elevators, except between such hours, in such specific elevator and by such personnel as shall be designated by Landlord. 
  
 6. The requirements of Tenant will be attended to only upon application at the management office for the Project or at such office location designated by
Landlord. Employees of Landlord shall not perform any work or do anything outside their regular duties unless under special instructions from Landlord. 
  
 7. No sign, advertisement, notice or handbill shall be exhibited, distributed, painted or affixed by Tenant on any part of the Premises or the Building
without the prior written consent of the Landlord. Tenant shall not disturb, solicit, peddle, or canvass any occupant of the Project and shall cooperate with Landlord and its agents of Landlord to prevent same. 
  
 8. The toilet rooms, urinals, wash bowls and other apparatus shall not be
used for any purpose other than that for which they were constructed, and no foreign substance of any kind whatsoever shall be thrown therein. The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne
by the tenant who, or whose servants, employees, agents, visitors or licensees shall have caused same. 
  
 9. Tenant shall not overload the floor of the Premises, nor mark, drive nails or screws, or drill into the partitions, woodwork or drywall or in any way
deface the Premises or any part thereof without Landlord’s prior written consent. 
  
 10. Except for vending machines intended for the sole use of Tenant’s employees and invitees, no vending machine or machines other than fractional horsepower office machines shall be installed, maintained or
operated upon the Premises without the written consent of Landlord. 
  
 11. Tenant shall not use or keep in or on the Premises, the Building, or the Project any kerosene, gasoline, explosive material, corrosive material, material capable of emitting toxic fumes, or other inflammable or combustible, fluid,
chemical, substitute or material. Tenant shall provide material safety data sheets for any Hazardous Material used or kept on the Premises. 
  
 12. Tenant shall not without the prior written consent of Landlord use any method of heating or air conditioning other than that supplied by Landlord.

  
 13. Tenant shall not use, keep or permit to be used or kept,
any foul or noxious gas or substance in or on the Premises, or permit or allow the Premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the Project by reason of noise, odors, or vibrations, or
interfere with other tenants or those having business therein, whether by the use of any musical instrument, radio, phonograph, or in any other way. Tenant shall not throw anything out of doors, windows or skylights or down passageways. 

 
 14. Tenant shall not bring into or keep within the Project, the Building
or the Premises any animals, birds, aquariums, or, except in areas designated by Landlord, bicycles or other vehicles. 
  
 15. No cooking shall be done or permitted on the Premises, nor shall the Premises be used for the storage of merchandise, for lodging or for any improper,
objectionable or immoral purposes. Notwithstanding the foregoing, Underwriters’ laboratory-approved equipment and microwave ovens may be used in the Premises for heating food and brewing coffee, tea, hot chocolate and similar beverages for
employees and visitors, provided that such use is in accordance with all applicable federal, state, county and city laws, codes, ordinances, rules and regulations. 
  
 16. The Premises shall not be used for manufacturing or for the storage of merchandise except as such storage may be
incidental to the use of the Premises provided for in the Summary. Tenant shall not occupy or 
  

 EXHIBIT D 
 -2- 

 
permit any portion of the Premises to be occupied as an office for a messenger-type operation or dispatch office, public stenographer or typist, or for the
manufacture or sale of liquor, narcotics, or tobacco in any form, or as a medical office, or as a barber or manicure shop, or as an employment bureau without the express prior written consent of Landlord. Tenant shall not engage or pay any employees
on the Premises except those actually working for such tenant on the Premises nor advertise for laborers giving an address at the Premises. The smoking of cigarettes or use of other tobacco products in any form whatsoever is prohibited within the
Project. 
  
 17. Landlord reserves the right to exclude or expel
from the Project any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or who shall in any manner do any act in violation of any of these Rules and Regulations. 
  
 18. Tenant, its employees and agents shall not loiter in or on the entrances,
corridors, sidewalks, lobbies, courts, halls, stairways, elevators, vestibules or any Common Areas for the purpose of smoking tobacco products or for any other purpose, nor in any way obstruct such areas, and shall use them only as a means of
ingress and egress for the Premises. 
  
 19. Tenant shall not
waste electricity, water or air conditioning and agrees to cooperate fully with Landlord to ensure the most effective operation of the Building’s heating and air conditioning system, and shall refrain from attempting to adjust any controls.
Tenant shall participate in recycling programs undertaken by Landlord. 
  
 20. Tenant shall store all its trash and garbage within the interior of the Premises. No material shall be placed in the trash boxes or receptacles if such material is of such nature that it may not be disposed of in the ordinary and
customary manner of removing and disposing of trash and garbage in San Diego, California without violation of any law or ordinance governing such disposal. All trash, garbage and refuse disposal shall be made only through entry-ways and elevators
provided for such purposes at such times as Landlord shall designate. If the Premises is or becomes infested with vermin as a result of the use or any misuse or neglect of the Premises by Tenant, its agents, servants, employees, contractors,
visitors or licensees, Tenant shall forthwith, at Tenant’s expense, cause the Premises to be exterminated from time to time to the satisfaction of Landlord and shall employ such licensed exterminators as shall be approved in writing in advance
by Landlord. 
  
 21. Tenant shall, comply with all safety, fire
protection and evacuation procedures and regulations established by Landlord or any governmental agency. 
  
 22. Any persons employed by Tenant to do janitorial work shall be subject to the prior written approval of Landlord, and while in the Building and outside
of the Premises, shall be subject to and under the control and direction of the Building manager (but not as an agent or servant of such manager or of Landlord), and Tenant shall be responsible for all acts of such persons. 
  
 23. No awnings or other projection shall be attached to the outside walls of
the Building without the prior written consent of Landlord, and no curtains, blinds, shades or screens shall be attached to or hung in, or used in connection with, any window or door of the Premises other than Landlord standard drapes. All
electrical ceiling fixtures hung in the Premises or spaces along the perimeter of the Building must be fluorescent and/or of a quality, type, design and a warm white bulb color approved in advance in writing by Landlord. Neither the interior nor
exterior of any windows shall be coated or otherwise sunscreened without the prior written consent of Landlord. Tenant shall be responsible for any damage to the window film on the exterior windows of the Premises and shall promptly repair any such
damage at Tenant’s sole cost and expense. Tenant shall keep its window coverings closed during any period of the day when the sun is shining directly on the windows of the Premises. Prior to leaving the Premises for the day, Tenant shall draw
or lower window coverings and extinguish all lights. Tenant shall abide by Landlord’s regulations concerning the opening and closing of window coverings which are attached to the windows in the Premises, if any, which have a view of any
interior portion of the Building or Building Common Areas. 
  
 24.
The sashes, sash doors, skylights, windows, and doors that reflect or admit light and air into the halls, passageways or other public places in the Building shall not be covered or obstructed by Tenant, nor shall any bottles, parcels or other
articles be placed on the windowsills. 
  

 EXHIBIT D 
 -3- 

 25. Tenant must comply with requests by the Landlord concerning the informing of their employees of items
of importance to the Landlord. 
  
 26. Tenant hereby acknowledges
that Landlord shall have no obligation to provide guard service or other security measures for the benefit of the Premises, the Building or the Project. Tenant hereby assumes all responsibility for the protection of Tenant and its agents, employees,
contractors, invitees and guests, and the property thereof, from acts of third parties, including keeping doors locked and other means of entry to the Premises closed, whether or not Landlord, at its option, elects to provide security protection for
the Project or any portion thereof. Tenant further assumes the risk that any safety and security devices, services and programs which Landlord elects, in its sole discretion, to provide may not be effective, or may malfunction or be circumvented by
an unauthorized third party, and Tenant shall, in addition to its other insurance obligations under this Lease, obtain its own insurance coverage to the extent Tenant desires protection against losses related to such occurrences. Tenant shall
cooperate in any reasonable safety or security program developed by Landlord or required by law. 
  
 27. All office equipment of any electrical or mechanical nature shall be placed by Tenant in the Premises in settings approved by Landlord, to absorb or
prevent any vibration, noise and annoyance. 
  
 28. Tenant shall
not use in any space or in the public halls of the Building, any hand trucks except those equipped with rubber tires and rubber side guards. 
  
 29. No auction, liquidation, fire sale, going-out-of-business or bankruptcy sale shall be conducted in the Premises without the prior written consent of
Landlord. 
  
 30. No tenant shall use or permit the use of any
portion of the Premises for living quarters, sleeping apartments or lodging rooms. 
  
 31. Tenant shall not purchase spring water, towels, janitorial or maintenance or other similar services from any company or persons not approved by Landlord. Landlord shall approve a sufficient number of sources of
such services to provide Tenant with a reasonable selection, but only in such instances and to such extent as Landlord in its judgment shall consider consistent with the security and proper operation of the Building. 
  
 32. Tenant shall install and maintain, at Tenant’s sole cost and
expense, an adequate, visibly marked and properly operational fire extinguisher next to any duplicating or photocopying machines or similar heat producing equipment, which may or may not contain combustible material, in the Premises. 
  
 Landlord reserves the right at any time to change or rescind any one or more
of these Rules and Regulations, or to make such other and further reasonable Rules and Regulations as in Landlord’s judgment may from time to time be necessary for the management, safety, care and cleanliness of the Premises, Building, the
Common Areas and the Project, and for the preservation of good order therein, as well as for the convenience of other occupants and tenants therein. Landlord may waive any one or more of these Rules and Regulations for the benefit of any particular
tenants, but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any other tenant, nor prevent Landlord from thereafter enforcing any such Rules or Regulations against any or all tenants of the
Project. Tenant shall be deemed to have read these Rules and Regulations and to have agreed to abide by them as a condition of its occupancy of the Premises. 
  

 EXHIBIT D 
 -4- 

 EXHIBIT E 
  
 LA JOLLA EXECUTIVE TOWER 
  
 FORM OF TENANT’S ESTOPPEL CERTIFICATE 
  
 The undersigned as Tenant under that certain Office Lease (the “Lease”) made and entered into as of
                    , 2000 by and between U.S. PROPERTY FUND GMBH & CO. KG, a German limited partnership as Landlord, and the undersigned
as Tenant, for Premises on the              floor(s) of the office building located at 4225 Executive Square, San Diego, California 92037, certifies as follows: 
  
 1. Attached hereto as Exhibit A is a true and correct copy of the Lease and
all amendments and modifications thereto. The documents contained in Exhibit A represent the entire agreement between the parties as to the Premises. 
  
 2. The undersigned currently occupies the Premises described in the Lease, the Lease Term commenced on
            , and the Lease Term expires on             , and the undersigned has no option to terminate or cancel
the Lease or to purchase all or any part of the Premises, the Building and/or the Project. 
  
 3. Base Rent became payable on             . 
  
 4. The Lease is in rail force and effect and has not been modified, supplemented or amended in any way except as provided in Exhibit A. 
  
 5. Tenant has not transferred, assigned, or sublet any portion of the
Premises nor entered into any license or concession agreements with respect thereto except as follows: 
  
 6. Tenant shall not modify the documents contained in Exhibit A without the prior written consent of Landlord’s mortgagee. 
  
 7. All monthly installments of Base Rent, all Additional Rent and all monthly
installments of estimated Additional Rent have been paid when due through             . The current monthly installment of Base Rent is
$        . 
  
 8.
All conditions of the Lease to be performed by Landlord necessary to the enforceability of the Lease have been satisfied and Landlord is not in default thereunder. In addition, the undersigned has not delivered any notice to Landlord regarding a
default by Landlord thereunder. 
  
 9. No rental has been paid
more than thirty (30) days in advance and no security has been deposited with Landlord except as provided in the Lease. 
  
 10. As of the date hereof, there are no existing defenses or offsets, or, to the undersigned’s knowledge, claims or any basis for a claim, that the
undersigned has against Landlord. 
  
 11. If Tenant is a
corporation or partnership, each individual executing this Estoppel Certificate on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in California and that Tenant has full right
and authority to execute and deliver this Estoppel Certificate and that each person signing on behalf of Tenant is authorized to do so. 
  
 12. There are no actions pending against the undersigned under the bankruptcy or similar laws of the United States or any state. 
  

 EXHIBIT E 
 -1- 

 13. Other than in compliance with all applicable laws and incidental to the ordinary course of the use of
the Premises, the undersigned has not used or stored any hazardous substances in the Premises. 
  
 14. To the undersigned’s knowledge, all tenant improvement work to be performed by Landlord under the Lease has been completed in accordance with the Lease and has been accepted by the undersigned and all
reimbursements and allowances due to the undersigned under the Lease in connection with any tenant improvement work have been paid in full. 
  
 Executed at              on the      day of
            , 2000. 
  

	 “Tenant”:

	
	 FIRST NATIONAL BANK,
 a national banking association

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  
  
  

 EXHIBIT E 
 -2- 

 CONSENT TO ASSIGNMENT AGREEMENT 
 (La Jolla Executive Tower) 
  
 This Consent to Assignment Agreement (this “Agreement”) is made as of April     , 2002, by and among U.S. PROPERTY FUND GMBH & CO. KG, a German limited partnership
(“Landlord”) and FIRST NATIONAL BANK, a national banking association (“Tenant”), and PACIFIC MERCANTILE BANK, a California corporation (“Assignee”). 
  
 R E C I T A L S :

  
 A. Reference is hereby made to that certain Lease dated
November 16, 2000 between Landlord and Tenant (the “Lease”), for space commonly known as Suite 150 and located on the first (1st) floor (the “Premises”) in that certain office building located at 4225 Executive Square, La Jolla, California (the “Building”). 
  
 B. Pursuant to the terms of Article 14 of the Lease, Tenant has requested
Landlord’s consent with respect to the assignment (the “Assignment”) by Tenant of its rights, title, interest and obligations under the Lease to Assignee. Landlord is willing to consent to the Assignment on the terms and
conditions contained herein. 
  
 C. All defined terms not
otherwise expressly defined herein shall have the respective meanings given in the Lease. 
  
 A G R E E M E N T : 
  
 1 . Landlord’s Consent. Landlord hereby consents to the Assignment: provided, however, such consent is granted by Landlord only upon the terms
and conditions set forth in this Agreement. Except as otherwise expressly provided in Section 3 below, this Agreement shall not be construed to modify, waive or amend any of the terms, covenants and conditions of the Lease or to waive any breach
thereof or any of Landlord’s rights or remedies thereunder or to enlarge or increase any obligations of Landlord under the Lease. Any terms of the Assignment which are inconsistent with the terms of the Lease or this Agreement shall be of no
force or effect. 
  
 2. Non-Release of Tenant: Further
Transfers. Neither the Assignment nor this consent thereto shall release or discharge Tenant from any liability, whether past, present or future, under the Lease or alter the primary liability of the Tenant to pay the rent and perform and comply
with all of the obligations of Tenant to be performed under the Lease. Neither the Assignment nor this consent thereto shall be construed as a waiver of Landlord’s right to consent to any further subletting by the Assignee or to any assignment
by the Assignee of its rights, title, interest and obligations under the Lease, or as a consent to any portion of the Premises being used or occupied by any other party. Landlord may consent to subsequent sublettings and 
  

 
assignments of the Lease or any amendments or modifications thereto without notifying Tenant nor anyone else liable under the Lease and without obtaining
their consent. No such action by Landlord shall relieve such persons from any liability to Landlord or otherwise with regard to the Premises. 
  
 3. Modifications to Lease. Notwithstanding anything in the Lease to the contrary, Landlord and Tenant acknowledge and agree that Assignee may,
subject to all of the terms and conditions of Section 2.2 of the Lease, exercise the option to extend the Lease Term set forth therein; provided, however, that the option right set forth in Section 2.2 of the Lease shall be personal to Assignee and
any Affiliate (as defined in Section 14.8 of the Lease) of Assignee and may only be exercised by Assignee or such Affiliate (not any other assignee, sublessee or other transferee of Assignee’s entire interest in the Lease) and only if Assignee
or such Affiliate occupies the entire Premises. By its execution below, Landlord acknowledges and agrees that Landlord has waived Landlord’s right to recapture the Premises as provided in Section 14.4 of the Lease with respect to the Assignment
(and only with respect to the Assignment). Landlord and Tenant acknowledge and agree that, as of the date hereof, an amount equal to Thirteen Thousand Two Hundred Sixty-Eight and 65/100 Dollars ($13,268.65) represents the amount of the Refurbishment
Allowance previously not disbursed by Landlord to Tenant. Landlord and Tenant acknowledge and agree that the Monument Sign rights and eyebrow sign rights as described in Article 23 of the Lease are transferred to Assignee, which Monument Sign rights
and eyebrow sign rights are personal to Assignee (and any Affiliate of Assignee’s entire interest in the Lease) and may not be used by or assigned to any person or entity. In addition, Assignee shall no longer have any right to the Monument
Sign and the eyebrow sign if at any time during the Lease Term Assignee or any Affiliate of the Assignee’s entire interest in the Lease does not lease and occupy at least eighty percent (80%) of the Premises. Landlord and Tenant further
acknowledge and agree that, notwithstanding anything in the Lease to the contrary, Section 8.6.1.2(B) of the Lease is hereby deemed modified by replacing the date of “March 1, 2002” with “September 1, 2002.” 
  
 4. General Provisions. 
  
 4.1 Brokerage Commission. Tenant and Assignee covenant and agree that
under no circumstances shall Landlord be liable for any brokerage commission or other charge or expense in connection with the Assignment and Tenant and Assignee agree to protect, defend, indemnify and hold Landlord harmless from the same and from
any cost or expense (including, but not limited to attorney’s fees) incurred by Landlord in resisting any claim for any such brokerage commission. 
  
 4.2 Controlling Law. The terms and provisions of this Agreement shall be construed in accordance with and governed by the laws of the State of
California. 
  
 4.3 Binding Effect. This Agreement shall be
binding upon and inure to the benefit of the parties hereto, their heirs, successors and assigns. As used herein, the singular number includes the plural and the masculine gender includes the feminine and neuter. 
  

 -2- 

 4.4 Captions. The paragraph captions utilized herein are in no way intended to interpret or limit
the terms and conditions hereof; rather, they are intended for purposes of convenience only. 
  
 4.5 Partial Invalidity. If any term, provision or condition contained in this Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term,
provision or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this Agreement shall be valid and
enforceable to the fullest extent possible permitted by law. 
  
 4.6 Attorney’s Fees. If either party commences litigation against the other for the specific performance of this Agreement, for damages for the breach hereof or otherwise for enforcement of any remedy hereunder, the parties
hereto agree to and hereby do waive any right to a trial by jury and, in the event of any such commencement of litigation, the prevailing party shall be entitled to recover from the other party such costs and reasonable attorneys’ fees as may
have been incurred. 
  
 4.7 Landlord’s Costs. Within
thirty (30) days after written request by Landlord, Tenant shall pay to Landlord any costs and reasonable attorneys’ fees incurred by Landlord in connection with Landlord’s review and analysis of the Assignment and the preparation of this
Agreement. 
  
 [The remainder of this page has been left
blank intentionally.] 
  

 -3- 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

  

	 “Landlord:”
	 	 U.S. PROPERTY FUND GMBH & CO. KG,
 a German limited partnership

			
	 	 	 By:
	 	 TMW U.S. PROPERTY FUND MANAGEMENT GMBH,
 its sole general partner

				
	 	 	 	 	 By:
	 	 U.S. PROPERTY MANAGEMENT II, L.P.,
 its authorized agent

					
	 	 	 	 	 	 	 By:
	 	 TMW Management LLC, its
 authorized agent

						
	 	 	 	 	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 	 	 Title:

			
	 “Tenant:”
	 	 	 	 FIRST NATIONAL BANK,
 a national banking association

				
	 	 	 	 	 By:
	 	 [SIGNATURE APPEARS HERE]

	 	 	 	 	 	 	 Its:
	 	EVP / CFO
				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 Its:
	 	  

			
	 “Assignee:”
	 	 	 	 PACIFIC MERCANTILE BANK,
 a California corporation

				
	 	 	 	 	 By:
	 	 [SIGNATURE APPEARS HERE]

	 	 	 	 	 	 	 Its:
	 	EVP / CFO
				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 Its:
	 	  

  

 -4-Office Space Lease, dated 09/14/2002

 EXHIBIT 10.13 
  
 [INITIALS APPEAR HERE] AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION 
  
 STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE — NET

 (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS) 
  
 1. Basic Provisions (“Basic Provisions”). 
  
 1.1 Parties: This Lease (“Lease”), dated for reference purposes only, SEPTEMBER 14, 2002, is made by
and between LEONARD KATZ & GERALD KATZ (“Lessor”) and PACIFIC MERCANTILE BANK (“Lessee”), (collectively the “Parties,” or individually a “Party”). 
  
 1.2 Premises: That certain real property, including all improvements
therein or to be provided by Lessor under the terms of this Lease, and commonly known as 1530 W. WHITTIER BLVD LA HABRA, located in the County of ORANGE, State of CALIFORNIA, and generally described as (describe briefly the nature of the property
and, if applicable the “Project”, if the property is located within a Project) APPROXIMATELY 6000 SQUARE FT SPACE – SPACE PART OR LARGER BUILDING WITH PARKING IN COMMON (“Premises”). (See also Paragraph 2)

  
 1.3 Term: FIVE (5) years and ZERO (0) months
(“Original Term”) commencing FEBRUARY 1, 2003 (“Commencement Date”) and ending JANUARY 08 2008 (“Expiration Date”). (See also Paragraph 3) 
  
 1.4 Early Possession: JANUARY 1, 2003 (“Early Possession
Date”). (See also Paragraphs 3.2 and 3.3) 
  
 1.5 Base
Rent: $$5,200.00 per month (“Base Rent”), payable on the FIRST (1ST) day of each month commencing FEBRUARY 1, 2003. (See also Paragraph 4) 
  

	 ̈	If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. 

  
 1.6 Base Rent and Other Monies Paid Upon Execution: 
  
 (a) Base Rent: $$5,200.00 for the period FEBRUARY 2003. 
  
 (b) Security Deposit: $$5,200.00 (“Security
Deposit”). (See also Paragraph 5) 
  
 (c) Association
Fees: $ N/A for the period                          
  
 (d) Other: $ N/A for
                         
  
 (e) Total Due Upon Execution of this Lease: $$10,400.00. 
  
 1.7 Agreed Use: GENERAL RETAIL BANK USE WITH ATM ACCESSABILITY (See also Paragraph 6) 
  
 1.8 Insuring Party: Lessor is the “Insuring Party”
unless otherwise stated herein. (See also Paragraph 8) 
  
 1.9
Real Estate Brokers: (See also Paragraph 15) 
  
 (a)
Representation: The following real estate brokers (the “Brokers”) and brokerage relationships exist in this transaction (check applicable boxes): 
  
 þ CENTERS BUSINESS MANAGEMENT represents Lessor exclusively (“Lessor’s Broker”);

  
 þ GRUBB & ELLIS represents Lessee
exclusively (“Lessee’s Broker”); or 
  
  ̈                         
represents both Lessor and Lessee (“Dual Agency”). 
  
 (b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Broker the fee agreed to in their separate written agreement (or if there is no such agreement, the sum of
             or              % of the total Base Rent) for the brokerage services rendered by the Brokers.

  
 1.10 Guarantor. The obligations of the Lessee under
this Lease are to be guaranteed by N/A (“Guarantor”). (See also Paragraph 37) 
  
 1.11 Attachments. Attached hereto are the following, all of which constitute a part of this Lease: 
  
 þ an Addendum consisting of Paragraphs 51 through 57; 
  
  ̈ a plot plan depicting the
Premises; 
  
  ̈ a current set of the Rules and Regulations; 
  
  ̈ a Work Letter; 
  
  ̈ other (specify):                                  
                                        
                                        
                                        
                                        
                             
  
 2. Premises. 
  
 2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the
terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of size set forth in this Lease, or that may have been used in calculating Rent, is an approximation which the Parties agree is reasonable and
any payments based thereon are not subject to revision whether or not the actual size is more or less. Note: Lessee is advised to verify the actual size prior to executing this Lease. 
  
 2.2 Condition. Lessor shall deliver the Premises to Lessee broom clean
and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs (“Start Date”), and, so long as the required service contracts described in Paragraph 7.1(b) below are obtained by Lessee and in effect
within thirty days following the Start Date, warrants that the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems (“HVAC”), loading doors, sump pumps, if any, and all other
such elements in the Premises, other than those constructed by Lessee shall be in good operating condition on said date and that the structural elements of the roof, bearing walls and foundation of any buildings on the Premises (the
“Building”) shall be free of material defects. If a non-compliance with said warranty exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period, Lessor
shall, as Lessor’s sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance
malfunction or failure, rectify same at Lessor’s expense. The warranty periods shall be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as 
  

	 [INITIALS APPEAR HERE]

	 	  

	 [INITIALS APPEAR HERE]

	 	 [INITIALS APPEAR HERE]

	 Initials
	 	 Initials

  

 Page 1 of 12 

 
to the remaining systems and other elements of the Building. If Lessee does not give Lessor the required notice within the appropriate warranty period,
correction of any such non-compliance, malfunction or failure shall be the obligation of Lessee at Lessee’s sole cost and expense. 
  
 2.3 Compliance. Lesser warrants that the improvements on the Premises comply with the building codes, applicable laws, covenants or restrictions of
record, regulations, and ordinances (“Applicable Requirements”) that were in effect at the time that each improvement, or portion thereof, was constructed. Said warranty does not apply to the use to which Lessee will put the
Premises, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Lessee’s use (see Paragraph 50), or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to
be made by Lessee. NOTE: Lessee is responsible for determining whether or not the Applicable Requirements, and especially the zoning, are appropriate for Lessee’s intended use, and acknowledges that past uses of the Premises
may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such
non-compliance, rectify the same at Lessor’s expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty within 6 months following the Start Date, correction of that non-compliance shall be the obligation of
Lessee at Lessee’s sole cost and expense. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction of an addition to or an alteration of the Premises and/or Building, the remediation
of any Hazardous Substance or the reinforcement or other physical modification of the Unit, Premises and/or Building (“Capital Expenditure”). Lessor and Lessee shall allocate the cost of such work as follows: 
  
 (a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are
required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however that if such Capital Expenditure is required during
the last 2 years of this Lease and the cost thereof exceeds 6 months’ Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within 10 days after receipt of Lessee’s termination notice that Lessor has
elected to pay the difference between the actual cost thereof and an amount equal to 6 months’ Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital Expenditure and deliver
to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without commencing such Capital
Expenditure. 
  
 (b) If such Capital Expenditure is not the result
of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor and Lessee shall allocate the obligation to pay for such costs pursuant to the provisions of Paragraph 7.1(d); provided,
however, that if such Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have the option to terminate this Lease upon
90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days after receipt of Lessor’s termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to
tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with Interest, from Rent until Lessor’s share of such costs have been fully paid. If Lessee is unable to finance Lessor’s share, or if the
balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate this Lease upon 30 days written notice to Lessor. 
  
 (c) Notwithstanding the above, the provisions concerning Capital Expenditures
are intended to apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modification to
the Premises then, and in that event, Lessee shall either: (i) immediately cease such changed use or intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such Capital Expenditure, or (ii) complete such
Capital Expenditure at its own expense. Lessee shall not, however, have any right to terminate this Lease. 
  
 2.4 Acknowledgements. Lessee acknowledges that: (a) it has been advised by Lessor and/or Brokers to satisfy itself with respect to the condition of
the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for
Lessee’s intended use, (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, and (c) neither Lessor,
Lessor’s agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations,
promises or warranties concerning Lessee’s ability to honor the Lease or suitability to occupy the Premises, and (ii) it is Lessor’s sole responsibility to investigate the financial capability and/or suitability of all proposed tenants.

  
 2.5 Lessee as Prior Owner/Occupant. The warranties made
by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work. 
  
 3. Term. 
  
 3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3.

  
 3.2 Early Possession. If Lessee totally or partially
occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early possession. All other terms of this Lease (including but not limited to the obligations to pay Real Property Taxes and
insurance premiums and to maintain the Premises) shall, however, be in effect during such period. Any such early possession shall not affect the Expiration Date. 
  
 3.3 Delay in Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the
Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease. Lessee shall
not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and
continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered within 60 days after the Commencement Date, Lessee
may, at its option, by notice in writing within 10 days after the end of such 60 day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within
said 10 day period, Lessee’s right to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee,
in writing. 
  
 3.4 Lessee Compliance. Lessor shall not be
required to deliver possession of the Premises to Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under
this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor’s election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions
prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied. 
  
 4. Rent. 
  
 4.1 Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be
rent (“Rent”). 
  
 4.2 Payment. Lessee
shall cause payment of Rent to be received by Lessor in lawful money of the United States on or before the day on which it is due, without offset or deduction (except as specifically permitted in this Lease). Rent for any period during the term
hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from
time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor’s rights to the balance of such Rent, regardless of Lessor’s endorsement of any check so stating. In the
event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future
payments to be made by Lessee to be by cashier’s check. Payments will be applied first to accrued late charges and attorney’s fees, second to accrued interest, then to Base Rent and Operating Expense increase, and any remaining amount to
any other outstanding charges or costs. 
  
 5. Security Deposit. Lessee
shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee’s faithful performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply
or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or
applies all or any portion of the Security Deposit, Lessee shall within 10 days after written request therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent
increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional moneys with Lessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as
the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security
Deposit to the extent necessary, in Lessor’s reasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during this Lease and following such change
the financial condition of Lessee is, in Lessor reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be 
  

	 [INITIALS APPEAR HERE]

	 	  

	 [INITIALS APPEAR HERE]

	 	 [INITIALS APPEAR HERE]

	 Initials
	 	Initials

  

 Page 2 of 12 

 at a commercially reasonable level based on such change in financial condition. Lessor shall not be required to keep the
Security Deposit separate from its general accounts. Within 14 days after the expiration or termination of this Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent, and otherwise within 30 days after the Premises have been
vacated pursuant to Paragraph 7.4(c) below, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any
monies to be paid by Lessee under this Lease. 
  
 6. Use. 
  
 6.1 Use. Lessee shall use and occupy the Premises only for the Agreed
Use, or any other legal use which is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or
causes damage to neighboring premises or properties. Lessor shall not unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the
improvements on the Premises or the mechanical or electrical systems therein, and/or is not significantly more burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall within 7 days after such request give written notification
of same, which notice shall include an explanation of Lessor’s objections to the change in the Agreed Use. 
  
 6.2 Hazardous Substances. 
  
 (a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall mean any product, substance, or
waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the
environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous
Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use
of Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessee’s expense) with all Applicable Requirements. “Reportable Use” shall mean (i) the installation or use of any above or
below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be
filed with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring
properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, ordinary office supplies (copier toner, liquid paper, glue, etc.) and common
household cleaning materials, so long as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor
to any liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against
damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security
Deposit. 
  
 (b) Duty to Inform Lessor. If Lessee knows, or
has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide
Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance. 
  
 (c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises
(including through the plumbing or sanitary sewer system) and shall promptly, at Lessee’s expense, comply with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered
or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous
Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party. 
  
 (d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from
and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee,
or any third party (provided, however, that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties not caused or contributed to by Lessee).
Lessee’s obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or
abatement, and shall survive the expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous
Substances, unless specifically so agreed by Lessor in writing at the time of such agreement. 
  
 (e) Lessor Indemnification. Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages,
including the cost of remediation, which result from Hazardous Substances which existed on the Premises prior to Lessee’s occupancy or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees.
Lessor’s obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of
this Lease. 
  
 (f) Investigations and Remediations. Lessor
shall retain the responsibility and pay for any investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee’s occupancy,
unless such remediation measure is required as a result of Lessee’s use (including “Alterations”, as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall
cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor’s agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor’s investigative and remedial
responsibilities. 
  
 (g) Lessor Termination Option. If a
Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable
Requirements and this Lease shall continue in full force and effect, but subject to Lessor’s rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor’s option, either (i) investigate and remediate such Hazardous Substance
Condition, if required, as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent
or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor’s desire to terminate this Lease as of the date 60 days
following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days thereafter, give written notice to Lessor of Lessee’s commitment to pay the amount by which the cost of the remediation of
such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,000 whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days following such
commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide
the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor’s notice of termination. 
  
 6.3 Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this Lease. Lessee shall, at Lessee’s sole expense,
fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessor’s engineers and/or consultants which
relate in any manner to the such Requirements without regard to whether such Requirements are now in effect or become effective after the Start Date. Lessee shall, within 10 days after receipt of Lessor’s written request, provide Lessor with
copies of all permits and other documents, and other information evidencing Lessee’s compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents
involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements. 
  
 6.4 Inspection; Compliance. Lessor and Lessor”s
“Lender” (as defined in Paragraph 30) and consultants shall have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable notice, for the purpose of inspecting the
condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition (see paragraph 9.1) is
found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related to the
violation or contamination. In addition, Lessee shall provide copies of all relevant material safety data sheets (MSDS) to Lessor within 10 days of the receipt of a written request therefor. 
  
 7. Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.

  
 7.1 Lessee’s Obligations. 
  
 (a) In General. Subject to the provisions of Paragraph 2.2
(Condition), 2.3 (Compliance), 6.3 (Lessee’s Compliance with Applicable Requirements) 7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee’s sole expense, keep the Premises Utility
installations (intended for Lessee’s exclusive use, no matter where located), and Alterations in good order, condition and repair (whether or not the 
  

	 [INITIALS APPEAR HERE]

	 	  

	 [INITIALS APPEAR HERE]

	 	 [INITIALS APPEAR HERE]

	 Initials
	 	Initials

  

 Page 3 of 12 

 
portion of the ‘Premises’ requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not
the need for such repairs occurs as a result of Lessee’s use, any prior use, the elements or the age of such portion of the Premises), including, but not limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical,
lighting facilities, boilers, pressure vessels, fire protection system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, roof drainage systems, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking
lots, fences, retaining walls, signs, sidewalks and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices, specifically
including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee’s obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or
a part thereof in good order, condition and state of repair Lessee shall, during the term of this Lease, keep the exterior appearance of the Building in a first-class condition (including, e.g. graffiti removal) consistent with the exterior
appearance of other similar facilities of comparable age and size in the vicinity, including, when necessary, the exterior repainting of the Building. 
  
 (b) Service Contracts. Lessee shall, at Lessee’s sole expense, procure and maintain contracts, with copies to Lessor, in customary form and
substance for, and with contractors specializing and experienced in the maintenance of the following equipment and improvements, if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire
extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof covering and drains, (vi) clarifiers (vii) basic utility feed to the perimeter of the Building, and (viii) any other equipment, if
reasonably required by Lessor. However, Lessor reserves the right, upon notice to Lessee, to procure and maintain any or all of such service contracts, and if Lessor so elects, Lessee shall reimburse Lessor, upon demand, for the cost thereof.

  
 (c) Failure to Perform. If Lessee fails to perform
Lessee’s obligations under this Paragraph 7.1, Lessor may enter upon the Premises after 10 days’ prior written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform such obligations on
Lessee’s behalf, and put the Premises in good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost thereof. 
  

(d) Replacement. Subject to Lessee’s indemnification of Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee of
liability resulting from Lessee’s failure to exercise and perform good maintenance practices, if an item described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such item, then
such item shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease, on the date on which Base Rent is due, an amount
equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is 144 (ie. 1/144th of the cost per month). Lessee shall pay interest on the unamortized balance at a rate that is commercially reasonable in the judgment of Lessor’s accountants. Lessee may, however, prepay its
obligation at any time. 
  
 7.2 Lessor’s Obligations.
Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the
Premises, or the equipment therein, all of which obligations are intended to be that of the Lessee. It is the intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the
Premises, and they expressly waive the benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease. 
  
 7.3 Utility Installations; Trade Fixtures; Alterations. 
  

(a) Definitions. The term “Utility Installations” refers to all floor and window coverings, air and/or vacuum lines, power
panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, plumbing, and fencing in or on the Premises. The term “Trade Fixtures” shall mean Lessee’s
machinery and equipment that can be removed without doing material damage to the Premises. The term “Alterations” shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or
deletion. “Lessee Owned Alterations and/or Utility Installations” are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a). 
  
 (b) Consent. Lessee shall not make any Alterations or Utility
Installations to the Premises without Lessor’s prior written consent. Lessee may, however, make non-structural Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as
they are not visible from the outside, do not involve puncturing, relocating or removing the roof or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life safety systems, and the cumulative cost thereof during this Lease as
extended does not exceed a sum equal to 3 month’s Base Rent in the aggregate or a sum equal to one month’s Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install
anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee
shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee’s: (i) acquiring all applicable governmental permits, (ii)
furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any
Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For work which costs an amount in excess
of one month’s Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or upon Lessee’s posting an
additional Security Deposit with Lessor. 
  
 (c) Liens;
Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic’s or materialmen’s lien
against the Premises or any interest therein. Lessee shall give Lessor not less than 10 days notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee
shall contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgement that may be rendered
thereon before the enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor
elects to participate in any such action, Lessee shall pay Lessor’s attorneys’ fees and costs. 
  
 7.4 Ownership; Removal; Surrender; and Restoration. 
  
 (a) Ownership. Subject to Lessor’s right to require removal or elect ownership as hereinafter provided, all Alterations and Utility
Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations.
Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises.

  
 (b) Removal. By delivery to Lessee of written notice
from Lessor not earlier than 90 and not later than 30 days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease.
Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent. 
  
 (c) Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with all of the
improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. “Ordinary wear and tear” shall not include any damage or deterioration
that would have been prevented by good maintenance practice. Notwithstanding the foregoing, if this Lease is for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO
allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment as well as the removal
of any storage tank installed by or for Lessee. Lessee shall completely remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via
underground migration from areas outside of the Premises, or if applicable, the Project) even if such removal would require Lessee to perform or pay for work that exceeds statutory requirements. Trade Fixtures shall remain the property of Lessee and
shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may
desire. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 2 below. 
  
 8. Insurance; Indemnity.  
  
 8.1 Payment For Insurance. Lessor shall pay for all insurance
required under Paragraph 8. Payment shall be made by Lessor within 10 days following receipt of an invoice. 
  
 8.2 Liability Insurance 
  
 (a) Carried by Lessor. Lessor shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and Lessor
against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis
providing single line coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate of not less than $2,000,000, an “Additional Insured-Managers or 
  

	 [INITIALS APPEAR HERE]

	 	  

	 [INITIALS APPEAR HERE]

	 	 [INITIALS APPEAR HERE]

	 Initials
	 	Initials

  

 Page 4 of 12 

 
Lessors of Premises Endorsement” and contain the “Amendment of the Pollution Exclusion Endorsement” for damage caused by heat, smoke or fumes
from a hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an “insured contract” for the performance of
Lessee’s indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. 
  
 (b) Carried by Lessor. Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in addition to,
and not in lieu of, the insurance maintained by Lessee. 
  
 8.3
Property Insurance - Building, Improvements and Rental Value. 
  
 (a) Building and Improvements. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises.
The amount of such insurance shall be equal to the full replacement cost of the Premises, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable
value thereof. If Lessor is the Insuring Party, however, Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee’s personal property shall be insured by Lessee under Paragraph 8.4 rather than by Lessor. If the coverage is
available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and
the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation
provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price
Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deductible cause, the deductible amount shall not exceed $1,000 per occurrence, and Lessee shall be liable for such deductible
amount in the event of an Insured Loss. 
  
 (b) Rental
Value. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an
additional 180 days (“Rental Value insurance”). Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise
payable by Lessee, for the next 12 month period. Lessee shall be liable for any deductible amount in the event of such loss. 
  
 (c) Adjacent Premises. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which are adjacent to the
Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings if said increase is caused by Lessee’s acts, omissions, use or occupancy of the Premises. 
  
 8.4 Lessee’s Property; Business Interruption Insurance.

  
 (a) Property Damage. Lessee shall obtain and maintain
insurance coverage on all of Lessee’s personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence.
The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee shall provide Lessor with written evidence that such insurance is in
force. 
  
 (c) No Representation of Adequate Coverage.
Lessor makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Lessee’s property, business operations or obligations under this Lease. 
  
 8.5 Insurance Policies. Insurance required herein shall be by
companies duly licensed or admitted to transact business in the state where the Premises are located, and maintaining during the policy term a “General Policyholders Rating” of at least B+, V, as set forth in the most current issue of
“Best’s Insurance Guide”, or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to
Lessor certified copies of policies of such insurance or certificates evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject to modification except after 30 days prior written notice to Lessor.
Lessee shall, at least 30 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or “insurance binders” evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to Lessee,
which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the
insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain the same. 
  
 8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive
their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured against herein. The effect of such releases and waivers is not limited by the amount of
insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the case
may be, so long as the insurance is not invalidated thereby. 
  
 8.7 Indemnity. Except for Lessor’s gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and
Lenders, from and against any and all claims, loss of rents and/or damages liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with the use and/or occupancy
of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor
shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemnified. 
  
 8.8 Exemption of Lessor from Liability. Lessor shall not be liable for injury or damage to the person or goods, wares, merchandise or other
property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the
breakage, leakage, obstruction or other defects of pipes, fire sprinklers wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon
other portions of the building of which the Premises are a part, or from other sources or places. Lessor shall not be liable for any damages arising from any act or neglect of any other tenant of Lessor nor from the failure of Lessor to enforce the
provisions of any other lease in the Project Notwithstanding Lessor’s negligence or breach of this Lease, Lessor shall under no circumstances be liable for injury to Lessee’s business or for any loss or income or profit therefrom.

  
 8.9 Failure to Provide Insurance. Lessee acknowledges
that any failure on its part to obtain or maintain the insurance required herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain.
Accordingly, for any month or portion thereof that Lessee does not maintain the required insurance and/or does not provide Lessor with the required binder or certificates evidencing the existence of the required insurance, the Base Rent shall be
automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater. The parties agree that such increase in Base Rent represents fair and reasonable
compensation for the additional risk/ costs that Lessor will incur by reason of Lessee’s failure to maintain the required insurance. Such increase in Base Rent shall in no event constitute a waiver of Lessee’s Default or Breach with
respect to the failure to maintain such insurance, prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of its obligation to maintain the insurance specified in this Lease. 
  
 9. Damage or Destruction. 
  
 9.1 Definitions. 
  
 (a) “Premises Partial Damage” shall mean damage or
destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing
within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total. 
  
 (b) “Premises Total Destruction” shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and Utility
Installations and Trade Fixtures, which cannot reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or
not the damage is Partial or Total. 
  
 (c) “Insured
Loss” shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in
Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved. 
  
 (d) “Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to the condition existing immediately prior thereto, including
demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction for depreciation. 
  
 (e) “Hazardous Substance Condition” shall mean the occurrence or discovery of a condition involving the presence of, or contamination by,
a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises which requires repair, remediation, or restoration. 
  
 9.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor’s expense repair
such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in all force and effect; provided, however, that Lessee shall at Lessor’s
election, make the repair of any damage or destruction the total cost of 
  

	 [INITIALS APPEAR HERE]

	 	  

	 [INITIALS APPEAR HERE]

	 	 [INITIALS APPEAR HERE]

	 Initials
	 	Initials

  

 Page 5 of 12 

 
repair of which is $10,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for
that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the insuring Party shall promptly contribute the shortage in proceeds (except as to the
deductible which is Lessee’s responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance
coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same,
or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10 day period, the party responsible for making the
repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter to: (i)
make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall not be
entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage,
but the net proceeds of any such insurance shall be made available for the repairs if made by either Party. 
  
 9.3 Partial Damage – Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful
act of Lessee (in which event Lessee shall make the repairs at Lessee’s expense), Lessor may either: (i) repair such damage as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and
effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60 days following the date of such notice. In the event
Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee’s commitment to pay for the repair of such damage without reimbursement from
Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as
soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice. 
  
 9.4 Total Destruction. Notwithstanding any other provision hereof, if
a Premises Total Destruction occurs, this Lease shall terminate 60 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor’s
damages from Lessee, except as provided in Paragraph 8.6. 
  
 9.5
Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the cost to repair exceeds one month’s Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60 days
following the date of occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend
this Lease or to purchase the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the
earlier of (i) the date which is 10 days after Lessee’s receipt of Lessor’s written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during
such period and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor’s commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease
shall continue in full force and effect. If Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee’s option shall
be extinguished. 
  
 9.6 Abatement of Rent; Lessee’s
Remedies. 
  
 (a) Abatement. In the event of Premises
Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall
be abated in proportion to the degree to which Lessee’s use of the Premises is impaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor
shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein. 
  
 (b) Remedies. If Lessor shall be obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way, such
repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of
Lessee’s election to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate as
of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect. “Commence” shall mean either the unconditional authorization of the preparation of the
required plans, or the beginning of the actual work on the Premises, whichever first occurs. 
  
 9.7 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments
made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s Security Deposit as has not been, or is not then required to be, used by Lessor. 
  
 9.8 Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to or
destruction of the Premises with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith. 
  
 10. Real Property Taxes. 
  
 10.1 Definition. As used herein, the term “Real Property Taxes” shall include any form of assessment; real estate, general,
special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Premises or the
Project, Lessor’s right to other income therefrom, and/or Lessor’s business on leasing, by any authority having the direct or indirect power to tax and where the funds are generated with reference to the Building address and where the
proceeds so generated are to be applied by the city, county or other local taxing authority of a jurisdiction within which the Premises are located. Real Property Taxes shall also include any tax, fee, levy, assessment or charge, or any increase
therein: (i) imposed by reason of events occurring during the term of this Lease, including but not limited to, a change in the ownership of the Premises, and (ii) levied or assessed on machinery or equipment provided by Lessor to Lessee pursuant to
this Lease. 
  
 10.2 Payment of Taxes. See Paragraph 56 of
Addendum to Lease 
  
 10.3 Joint Assessment. If the
Premises are not separately assessed, Lessee’s liability shall be an equitable proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be conclusively determined by
Lessor from the respective valuations assigned in the assessor’s work sheets or such other information as may be reasonably available. 
  
 10.4 Personal Property Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility
Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal
property to be assessed and billed separately from the real property of Lessor. If any of Lessee’s said property shall be assessed with Lessor’s real property, Lessee shall pay Lessor the taxes attributable to Lessee’s property within
10 days after receipt of a written statement setting forth the taxes applicable to Lessee’s property. 
  
 11. Utilities and Services. See Paragraph 56 of Addendum to Lease 
  
 12. Assignment and Subletting. 
  
 12.1 Lessor’s Consent Required. 
  
 (a)
Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, “assign or assignment”) or sublet all or any part of Lessee’s interest in this Lease or in the Premises without Lessor’s
prior written consent. 
  
 (b) Unless Lessee is a corporation and
its stock is publicly traded on a national stock exchange, a change in the control of Lessee shall 
  

	 [INITIALS APPEAR HERE]

	 	  

	 [INITIALS APPEAR HERE]

	 	 [INITIALS APPEAR HERE]

	 Initials
	 	Initials

  

 Page 6 of 12 

 
constitute an assignment requiring consent. The transfer, on a cumulative basis, of 25% or more of the voting control of Lessee shall constitute a change in
control for this purpose. 
  
 (c) The involvement of Lessee or its
assets in any transaction, or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buy-out or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee’s assets occurs, which
results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net Worth as it was represented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor has
consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. “Net Worth
of Lessee” shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles. 
  
 (d) An assignment or subletting without consent shall, at Lessor’s option, be a Default curable after notice per Paragraph 13.1(c), or a noncurable
Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved assignment or subletting as a noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon 30 days written notice, increase the
monthly Base Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of the
price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent. 
  
 (e) Lessee’s remedy for any breach of Paragraph 12.0 by Lessor shall be limited to compensatory damages and/or
injunctive relief. 
  
 12.2 Terms and Conditions Applicable to
Assignment and Subletting. 
  
 (a) Regardless of
Lessor’s consent, no assignment or subletting shall: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii)
after the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee. 
  
 (b) Lessor may accept Rent or performance of Lessee’s obligations from any person other than Lessee pending approval or disapproval of an assignment.
Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor’s right to exercise its remedies for Lessee’s Default or Breach. 
  
 (c) Lessor’s consent to any assignment or subletting shall not
constitute a consent to any subsequent assignment or subletting. 
  
 (d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee’s obligations under this Lease, including any assignee or
sublessee, without first exhausting Lessor’s remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor. 
  
 (e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor’s determination as to
the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any, together with a fee of $500 as consideration
for Lessor’s considering and processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested. (See also Paragraph 36) 
  
 (f) Any assignee of, or sublessee under, this Lease shall, by reason of
accepting such assignment or entering into such sublease, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said
assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing. 
  
 (g) Lessor’s consent to any assignment or subletting shall not transfer
to the assignee or sublessee any Option granted to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2) 
  
 12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any
subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein: 
  
 (a) Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all Rent payable on any sublease, and
Lessor may collect such Rent and apply same toward Lessee’s obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee’s obligations, Lessee may collect said Rent. In the event that the
amount collected by Lessor exceeds Lessee’s obligations any such excess shall be refunded to Lessee. Lessor shall not, by reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to
the sublessee for any failure of Lessee to perform and comply with any of Lessee’s obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a
Breach exists in the performance of Lessee’s obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any
obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary. 
  
 (b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall undertake the
obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such
sublessor or for any prior Defaults or Breaches of such sublessor. Lessor should be liable for any pre-paid rents or security deposit paid by a sublessee. 
  
 (c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor. 
  
 (d) No sublessee shall further assign or sublet all or any part of the
Premises without Lessor’s prior written consent which will not be unreasonably withheld. 
  
 (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any, specified in such notice. The
sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. 
  
 13. Default; Breach; Remedies. 
  
 13.1 Default; Breach. A “Default” is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions
or Rules and Regulations under this Lease. A “Breach” is defined as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period: 
  
 (a) The abandonment of the Premises; or the vacating of the Premises without
providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism.

  
 (b) The failure of Lessee to make any payment of Rent or any
Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers or threatens life or
property, where such failure continues for a period of 3 business days following written notice to Lessee. 
  
 (c) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the
rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 42, (viii) material safety data
sheets (MSDS), or (ix) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee. 
  
 (d) A Default by Lessee as to the terms, covenants conditions or provisions
of this Lease, or of the rules adopted under Paragraph 40 hereof, other than those described in subparagraphs 13.1(a), (b) or (c), above, where such Default continues for a period of 30 days after written notice provided, however, that if the nature
of Lessee’s Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to
completion. 
  
 (e) The occurrence of any of the following events:
(i) the making of any general arrangement of assignment for the benefit of creditors; (ii) becoming a “debtor” as defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the
same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Premises or on Lessee’s interest in this Lease, where possession is not restored to
Lessee within 30 days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’ interest in this Lease, where such seizure is not discharged within 30 days
provided, however, in the event that any provision of this subparagraph (e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions. 
  
 (f) The discovery that any financial statement of Lessee or of any Guarantor
given to Lessor was materially false. 
  
 (g) If the performance
of Lessee’s obligations under this Lease is guaranteed: (i) the death of a Guarantor unless the Guarantor is replaced (ii) the termination of a Guarantor’s liability with respect to this Lease other than in accordance with the terms of
such guaranty, (iii) a Guarantor’s becoming insolvent or the subject of a bankruptcy filing, (iv) a Guarantor’s refusal to honor the guaranty, or (v) a Guarantor’s breach of its guaranty obligation on an anticipatory basis, and
Lessee’s failure, within 60 days following written notice of any such event, to provide written alternative assurance or security, which when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources
of Lessee and the Guarantors that existed at the time of execution of this Lease. 
  
 13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations, within 10 days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such
duty or obligation on Lessee’s behalf, including but not limited to the obtaining of 
  

	 [INITIALS APPEAR HERE]

	 	  

	 [INITIALS APPEAR HERE]

	 	 [INITIALS APPEAR HERE]

	 Initials
	 	Initials

  

 Page 7 of 12 

 
reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee shall pay to Lessor an amount equal to 115% of the
costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which
Lessor may have by reason of such Breach: 
  
 (a) Terminate
Lessee’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the
unpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss
that the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves
could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee’s failure to perform its obligations under this Lease or which in the ordinary course of things would
be likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys’ fees, and that portion of
any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed
by discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent. Efforts by Lessor to mitigate damages caused by Lessee’s Breach of this
Lease shall not waive Lessor’s right to recover damages under Paragraph 12. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent
and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or to
perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run
concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/or by
said statute. 
  
 (b) Continue the Lease and Lessee’s right
to possession and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor’s
interests, shall not constitute a termination of the Lessee’s right to possession. 
  
 (c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the termination of
Lessee’s right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee’s occupancy of the Premises. 
  
 13.3 Inducement Recapture. Any agreement for free or abated rent or
other charges, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee’s entering into this Lease, all of which concessions are hereinafter referred to as “Inducement
Provisions,” shall be deemed conditioned upon Lessee’s full and faithful performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be
deemed deleted from this Lease and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an inducement Provision shall be immediately due and payable by
Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of
this paragraph unless specifically so stated in writing by Lessor at the time of such acceptance. 
  
 13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease,
the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be
received by Lessor within 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to 10% of each such overdue amount or $100, whichever is
greater. The Parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of
Lessee’s Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for 3
consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor’s option, become due and payable quarterly in advance. 
  
 13.5 Interest. Any monetary payment due Lessor hereunder, other than
late charges, not received by Lessor, when due as to scheduled payments (such as Base Rent) or within 30 days following the date on which it was due for non-scheduled payment, shall bear interest from the date when due, as to scheduled
payments, or the 31st day after it was due as to non-scheduled payments. The interest (“Interest”)
charged shall be computed at the rate of 10% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4. 
  
 13.6 Breach by Lessor. 
  
 (a) Notice of Breach. Lessor shall not be deemed in, breach of this
Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose
name and address shall have been furnished Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor’s obligation is such that more
than 30 days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion. 
  
 (b) Performance by Lessee on Behalf of Lessor. In the event that
neither Lessor nor Lender cures said breach within 30 days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee’s expense and offset
from Rent the actual and reasonable cost to perform such cure, provided however, that such offset shall not exceed an amount equal to the greater of one month’s Base Rent or the Security Deposit, reserving Lessee’s right to seek
reimbursement from Lessor. Lessee shall document the cost of said cure and supply said documentation to Lessor. 
  
 14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise or said power
(collectively “Condemnation”), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession whichever first occurs. If more than 10% of the Building, or more than 25% of that
portion of the Premises not occupied by any building, is taken by Condemnation, Lessee may, at Lessee’s option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the absence of
such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing,
this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards
and/or payments shall be the property of Lessor, whether such award shall be made a compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any
compensation for Lessee’s relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations
made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by
reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation. 
  
 15. Brokerage Fees. 
  
 15.1 Additional Commission. In addition to the payments owed pursuant to Paragraph 1.9 above, and unless Lessor and the Broker otherwise agree in writing, Lessor agrees that: (a) if Lessee exercises any Option, (b) if Lessee
acquires any rights to the Premises or other premises owned by Lessor and located within the same Project, if any, within which the Premises is located, (c) if Lessee remains in possession of the Premises, with the consent of Lessor, after the
expiration of this Lease, or (d) if Base Rent is increased, whether by agreement or operation of an escalation clause herein, then Lessor shall pay Brokers a fee in accordance with the schedule of the Brokers in effect at the time of the execution
of this Lease. 
  
 15.2 Assumption of Obligations. Any
buyer or transferee of Lessor’s interest in this Lease shall be deemed to have assumed Lessor’s obligation hereunder. Brokers shall be third party beneficiaries of the provisions of Paragraphs 1.9, 15, 22 and 31. If Lessor fails to pay to
Brokers any amounts due as and for brokerage fees pertaining to this Lease when due, then such amounts shall accrue Interest. In addition, if Lessor fails to pay any amounts to Lessee’s Broker when due, Lessee’s Broker may send written
notice to Lessor and Lessee of such failure and if Lessor fails to pay such amount within 10 days after said notice, Lessee shall pay said monies to its Broker and offset such amounts against Rent. In addition, Lessee’s Broker shall be deemed
to be a third party beneficiary of any commission agreement entered into by and/or between Lessor and Lessor’s Broker for the limited purpose of collecting any brokerage fee owed. 
  
 15.3 Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the
other that it has had no dealings with any person, firm, broker or finder (other than the Brokers, if any) in connection with this Lease, and that no one other than said named Brokers is entitled to any commission or finder’s fee in connection
herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by
reason of any dealings or actions of the indemnifying Party, including any costs, expenses, attorneys’ fees reasonably incurred with respect thereto. 
  

	 [INITIALS APPEAR HERE]

	 	

	 [INITIALS APPEAR HERE]

	 	 [INITIALS APPEAR HERE]

	 Initials
	 	Initials

  

 Page 8 of 12 

 16. Estoppel Certificates. 
  
 (a) Each Party (as “Responding Party”) shall within 10 days after written notice from the other Party (the
“Requesting Party”) execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current “Estoppel Certificate” form published by the American Industrial Real
Estate Association, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party. 
  
 (b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting Party may execute an
Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting Party’s performance, and (iii) if
Lessor is the Requesting Party, not more than one month’s rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party’s Estoppel Certificate, and the Responding Party shall be estopped from
denying the truth of the facts contained in said Certificate. 
  
 (c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such financial statements as may be reasonably
required by such lender or purchaser, including but not limited to Lessee’s financial statements for the past 3 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only
for the purposes herein set forth. 
  
 17. Definition of Lessor. The term
“Lessor” as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee’s interest in the prior lease. In the event of a transfer of
Lessor’s title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such transfer or assignment
and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the
obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined. 
  
 18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any
other provision hereof. 
  
 19. Days. Unless otherwise specifically
indicated to the contrary, the word “days” as used in this Lease shall mean and refer to calendar days 
  
 20. Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor or its partners, members, directors,
officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor’s partners, members,
directors, officers or shareholders, or any of their personal assets for such satisfaction except for fraud, gross negligence or other intentional acts of Lessor. 
  
 21. Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the
Parties under this Lease. 
  
 22. No Prior or Other Agreements; Broker
Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrant to
the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the use, nature, quality and character of the Premises.
Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. The liability (including court costs and attorneys’ fees), of any Broker with respect to negotiation, execution, deliver or
performance by either Lessor or Lessee under this Lease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each
Broker’s liability shall not be applicable to any gross negligence or willful misconduct of such Broker. 
  
 23. Notices. 
  
 23.1
Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal
Service Express Mail, with postage prepaid, or by facsimile transmission, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 23. The addresses noted adjacent to the Party’s signature on this Lease shall be
that Party’s address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice, except that upon Lessee’s taking possession of the Premises, the Premises shall constitute
Lessee’s address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereafter designate in writing. 
  
 23.2 Date of Notice. Any notice sent by registered or certified mail,
return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given five (5) Business days after the same
is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or
courier. Notices transmitted by facsimile transmission or similar means shall be deemed delivered upon telephone confirmation of receipt (confirmation report from fax machine is sufficient provided a copy is also delivered via delivery or mail. If
notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day. 
  
 24. Waivers. No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant
or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of
Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. The acceptance of Rent by Lessor shall not be
a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such
statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. 
  
 25. Disclosures Regarding The Nature of a Real Estate Agency Relationship. 
  
 (a) When entering into a discussion with a real estate agent regarding a
real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge being advised by the Brokers in this
transaction, as follows: 
  
 (i) Lessor’s Agent. A
Lessor’s agent under a listing agreement with the Lessor acts as the agent for the Lessor only. Lessor’s agent or subagent has the following affirmative obligations: To the Lessor: A fiduciary duty of utmost care, integrity,
honesty, and loyalty in dealing with the Lessor. To the Lessee and the Lessor: a. Diligent exercise of reasonable skills and care in performance of the agent’s duties. b. A duty of honor and fair dealing and good faith. c. A duty to
disclose all facts known to the agent materially affecting the value or desirability of the property that are to be known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any
confidential information obtained from the other Party which does not involve the affirmative duties set forth above. 
  
 (ii) Lessee’s Agent. An agent can agree to act as agent for the Lessee only. In these situations, the agent is not the Lessor’s agent,
even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Lessor. An agent acting only for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of utmost
care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor: a. Diligent exercise of reasonable skills and care in performance of the agent’s duties. b. A duty of honest and fair dealing and good
faith. c. A duty to disclose all facts known to, the agent materially affecting the value or desirability of the property that are not known to be within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to
either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above. 
  
 (iii) Agent Representing Both Lessor and Lessee. A real estate agent, either acting directly or through one or more associate licenses, can
legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation, the agent has the following affirmative obligations to both the Lessor
and the Lessee: a. A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lessor or the Lessee. b. Other duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both
Lessor and Lessee, the agent may not without the express permission of the respective Party, disclose to the other Party that the Lessor will accept rent in an amount less than that indicated in the listing or that the Lessee is willing to pay a
higher rent than that offered. The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to protect their own interest Lessor and Lessee should carefully read all agreements to assure that
they adequately express their understanding of the transaction. A real estate agent 
  

	 [INITIALS APPEAR HERE]

	  	

	 [INITIALS APPEAR HERE]

	  	 [INITIALS APPEAR HERE]

	 Initials
	  	 Initials

  

 Page 9 of 12 

 
a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. 
  
 (b) Brokers have no responsibility with respect to any default or breach
hereof by either Party. The liability (including court costs and attorneys’ fees), of any Broker with respect to any breach of duty, error of omission relating to this Lease shall not exceed the fee received by such Broker pursuant to this
Lease; provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable to any gross negligence or willful misconduct of such Broker. 
  
 (c) Lessor and Lessee agree to identify to Brokers as “Confidential” any communication or information given
Brokers that is considered by such Party to be confidential. 
  
 26. No Right
To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. In the event that Lessee holds over, then the Base Rent shall be increased to 150% of the Base Rent
applicable immediately preceding the expiration or termination. Nothing contained herein shall be construed as consent by Lessor to any holding over by Lessee. 
  

27. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or
in equity. 
  
 28. Covenants and Conditions; Construction of
Agreement. All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be considered a part of
this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had
prepared it. 
  
 29. Binding Effect; Choice of Law. This Lease shall
be binding upon the Parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the
county in which the Premises are located. 
  
 30. Subordination; Attornment;
Non-Disturbance. 
  
 30.1 Subordination. This Lease
and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or other hypothecation or security device (collectively, “Security Device”), now or hereafter placed upon the Premises, to
any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as “Lender”) shall have
no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee,
whereupon this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof. 
  
 30.2 Attornment. In the event that Lessor transfers title to the Premises, or the Premises are acquired by another
upon the foreclosure or termination of a Security Device to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn to such new owner, and upon request, enter into a new lease,
containing all of the terms and provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of such new owner, this Lease shall automatically become a new Lease between Lessee and such new owner, upon all
of the terms and conditions hereof, for the remainder of the term hereof, and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor’s obligations hereunder, except that such
new owner shall not: (a) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b) be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be
bound by prepayment of more than one month’s rent, or (d) be liable for the return of any security deposit paid to any prior lessor. 
  
 30.3 Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee’s subordination of
this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a “Non-Disturbance Agreement”) from the Lender which Non-Disturbance Agreement provides that Lessee’s possession of the Premises, and
this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the execution of this Lease, Lessor shall use
its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within said
60 days, then Lessee may, at Lessee’s option, directly contact Lender and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement. 
  
 30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without the execution of any
further documents provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to
separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein provided the wording is the same. 
  
 31. Attorneys’ Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare
rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys’ fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether
or not such action or proceeding is pursued to decision or judgment. The term, “Prevailing Party” shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be,
whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys’ fee award shall not be computed in accordance with any court fee schedule, but shall be such as to fully
reimburse all attorneys’ fees reasonably incurred. In addition, Lessor shall be entitled to attorneys’ fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith,
whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation). 
  
 32. Lessor’s Access; Showing Premises; Repairs. Lessor and Lessor’s
agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose of showing the same to prospective purchasers, lenders, tenants, and making
such alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary or desirable and the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long as
there is no material adverse effect on Lessee’s use of the Premises. All such activities shall be without abatement of rent or liability to Lessee. 
  
 33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor’s prior written consent. Lessee shall not be
obligated to exercise any standard of reasonableness in determining whether to permit an auction. 
  
 34. Signs. Lessor may place on the Premises ordinary “For Sale” signs at any time and ordinary “For Lease” signs during the last 6 months of the term hereof. Except for ordinary “for
sublease” signs, Lessee shall not place any sign upon the Premises without Lessor’s prior written consent. All signs must comply with all Applicable Requirements. 
  
 35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this
Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser establish in the Premises; provided, however, that Lessor may elect to
continue any one or all existing subtenancies. Lessor’s failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor’s election to have such
event constitute to termination of such interest. 
  
 36. Consents. Except
as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor’s actual reasonable costs and expenses (including
but not limited to architects’, attorneys’ engineers’ and other consultants’ fees) incurred in the consideration of; or response to, a request by Lessee for any Lessor consent, including but not limit to consents to an
assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor’s consent to any act, assignment or subletting shall not constitute an
acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specification stated in writing by Lessor at the time of such
consent. The failure to specify herein any particular condition to Lessor’s consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular
matter for which consent is being given. In the event that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in
writing and in reasonable detail within 10 business days following such request. 
  
 37. Guarantor. 
  
 37.1 Execution. The
Guarantors, if any, shall each execute a guaranty in the form most recently published by the American Industrial Real Estate Association, and each such Guarantor shall have the same obligations as Lessee under this Lease. 
  

	 [INITIALS APPEAR HERE]

	 	 	 	 [INITIALS APPEAR HERE]

			
	 [INITIALS APPEAR HERE]

	 	 	 	

	Initials	 	 	 	Initials

  

 Page 10 of 12 

 37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon
request to provide: (a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantor’s behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board
of directors authorizing the making of such guaranty, (b) current financial statements, (c) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect. 
  
 38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on
Lessee’s part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof. 
  

39. Options. If Lessee is granted an Option, as defined below, then the following provisions shall apply: 
  
 39.1 Definition. “Option” shall mean: (a) the right to
extend the term of or renew this Lease or to extend or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase or
the right of first refusal to purchase the Premises or other property of Lessor. 
  
 39.2 Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only
while the original Lessee is in full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subletting. 
  
 39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later
Option cannot be exercised unless the prior Options have been validly exercised. 
  
 39.4 Effect of Default on Options. 
  
 (a) Lessee shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is
unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more notices of separate Default, whether or not the Defaults are cured,
during the 12 month period immediately preceding the exercise of the Option. 
  
 (b) The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee’s inability to exercise an Option because of the provisions of Paragraph 39.4(a). 

 
 (c) An Option shall terminate and be of no further force or effect,
notwithstanding Lessee’s due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent
becomes due (without any necessity of Lessor to give notice thereof), or (ii) if Lessee commits a Breach of this Lease. 
  
 40. Multiple Buildings. If the Premises are a part of a group of buildings controlled by Lessor, Lessee agrees that it will abide by and conform to all reasonable
rules and regulations which Lessor may make from time to time for the management, safety, and care of said properties, including the care and cleanliness of the grounds and including the parking, loading and unloading of vehicles, and to cause its
employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessee also agrees to pay its fair share of common expenses incurred in connection with such rules and regulations. 
  
 41. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor
hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and
invitees and their property from the acts of third parties. 
  
 42.
Reservations. Lessor reserves to itself the right, from time to time, to grant, without the consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and
restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any such
easement rights, dedication, map or restrictions. 
  
 43. Performance Under
Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make
payment “under protest” and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal
obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay. 
  
 44. Authority; Multiple Parties; Execution. 
  

(a) If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on
behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each party shall within 30 days after request, deliver to the other party satisfactory evidence of such authority.

  
 (b) If this Lease is executed by more than one person or
entity as “Lessee”, each such person or entity shall be jointly and severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto
and bind all of the named Lessees, and Lessor may rely on the same as if all of the named Lessees had executed such document. 
  
 (c) This Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which together shall constitute one
and the same instrument. 
  
 45. Conflict. Any conflict between the printed
provisions of this Lease and typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions. 
  
 46. Offer. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other
Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto. 
  
 47. Amendments. This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as they do not materially change Lessee’s obligations hereunder,
Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises. 
  
 48. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY
JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT. 
  
 49. Mediation and Arbitration of Disputes. An Addendum requiring the Mediation and/or the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease  ̈ is  ̈ is not attached to this Lease. 
  
 50. Americans with Disabilities Act. Since compliance with the Americans with
Disabilities Act (ADA) is dependent upon Lessee’s specific use of the Premises. Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the event the Lessee’s use of the
Premises requires modifications or additions to the Premises in order to be in ADA compliance, Lessee agrees to make any such necessary modifications and/or additions at Lessee’s expense. 
  

	 [INITIALS APPEAR HERE]

	 	 	 	 [INITIALS APPEAR HERE]

			
	 [INITIALS APPEAR HERE]

	 	 	 	 [INITIALS APPEAR HERE]

	 Initials
	 	 	 	 Initials

  

 Page 11 of 12 

 LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE
EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND
LESSEE WITH RESPECT TO THE PREMISES. 
  
 ATTENTION: NO REPRESENTATION OR
RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO: 

 
 1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

  
 2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION
OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF
THE PREMISES FOR LESSEE’S INTENDED USE. 
  
 WARNING: IF THE
PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES IS LOCATED. 
  
 The parties hereto have executed this Lease at the place and on the dates specified above their respective signatures. 
  

	 Executed at:
                                        
                                
	 	 	 	 Executed at:
                                        
                                

				
	 on:
	 	 12/19/02
	 	 	 	on:
                                        
                                
					
	 By LESSOR:
	 	 	 	 	 	 By LESSEE:
	 	 
			
	 LEONARD KATZ & GERALD KATZ
	 	 	 	 PACIFIC MERCANTILE BANK

			
	
	 	 	 	

			
	 By: /s/ LEONARD KATZ

	 	 	 	 By: /s/ NANCY GRAY

					
	 Name Printed:
	 	 LEONARD KATZ
	 	 	 	 Name Printed:
	 	 NANCY GRAY

					
	 Title:
	 	 OWNER
	 	 	 	 Title:
	 	 EVP & CFO

			
	 By: /s/ GERALD KATZ

	 	 	 	 By:
                                        
                                

				
	 Name Printed:
	 	 GERALD KATZ
	 	 	 	 Name Printed:
                                        
                                

				
	 Title:
	 	 OWNER
	 	 	 	 Title:
                                        
                                

			
	 Address:
                                        
                                        
            
	 	 	 	 Address:
                                        
                                

			
	
	 	 	 	

				
	 Telephone/Facsimile:
	 	 818-883-0890 / 818-883-0712 FAX
	 	 	 	 Telephone/Facsimile:
                                        
                

			
	 Federal ID No.
                                        
                                       
 
	 	 	 	 Federal ID No.
                                        
                

					
	 BROKER:
	 	 	 	 	 	 BROKER:
	 	 
			
	 CENTERS BUSINESS MANAGEMENT
	 	 	 	 GRUBB & ELLIS

			
	  

	 	 	 	  

					
	 Attn:
	 	 DAVID LEVCOVITCH
	 	 	 	 Attn:
	 	 GREGORY D. FARRIER

					
	 Title:
	 	 RETAIL / OFFICE LEASING
	 	 	 	 Title:
	 	 ASSOCIATE VICE PRESIDENT

			
	 Address: 17030 VENTURA BLVD SUITE 200
	 	 	 	 Address: 500 N. STATE COLLEGE BLVD SUITE 100

			
	 ENCINO, CA 91316
	 	 	 	 ORANGE, CA 92868

					
	 Telephone/Facsimile:
	 	 818-380-9966 EXT 22/818-380-9976
	 	 	 	 Telephone/Facsimile:
	 	 714-939-6005 / 714-978-8071 FAX

			
	 Federal ID No.
                                        
                                       
 
	 	 	 	 Federal ID No.
                                        
                

  

	NOTE:	These forms are often modified to meet the changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AMERICAN
INDUSTRIAL REAL ESTATE ASSOCIATION, 700 So. Flower Street, Suite 600, Los Angeles, California 90017. (213) 687-8777. Fax No. (213) 687-8616 

  
 © Copyright 1997 - By American Industrial Real Estate Association. All rights reserved. 
 No part of these works may be reporduced in any form without permission in writing. 
  

	 [INITIALS APPEAR HERE]

	 	 	 	 [INITIALS APPEAR HERE]

			
	 [INITIALS APPEAR HERE]

	 	 	 	

	 Initials
	 	 	 	 Initials

  

 Page 12 of 12 

 [GRAPHIC APPEARS HERE] 
  
 RENT ADJUSTMENT(S) 
 STANDARD LEASE ADDENDUM 
  

	      Dated SEPTEMBER 14, 2002

		
	 By and Between (Lessor)
	 	 LEONARD KATZ & GERALD KATZ

		
	 	 	  

		
	 (Lessee)
	 	 PACIFIC MERCANTILE BANK

		
	 	 	  

	
	      Address of Premises: 1530 W. WHITTIER
BLVD.
  
        LA HABRA, CA

  
 Paragraph 50 
  
 A. RENT ADJUSTMENTS: 
  
 The monthly rent for each month of the adjustment period(s) specified below shall be increased using the method(s) indicated
below: 
  
 (Check Method(s) to be Used and Fill in Appropriately) 
  

	 ̈	1. Cost of Living Adjustment(s) (COLA) 

  
 a. On (Fill in COLA Dates): _______________________________________________________________________________ 
  
 __________________________________________________________________________________________________________ 
 the Base Rent shall be adjusted by the
change, if any, from the Base Month specified below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for (select one):  ̈ CPI W (Urban Wage Earners and Clerical Workers) or  ̈
CPI U ( All Urban Consumers), for (Fill in Urban Area):                      
                                        
                                        
                                        
                  , 
 All Items (1982-1984 = 100), herein
referred to as “CPI”. 
  
 b. The monthly rent payable in
accordance with paragraph A.I.a. of this Addendum shall be calculated as follows: the Base Rent set forth in paragraph 1.5 of the attached Lease, shall be multiplied by a fraction the numerator of which shall be the CPI of the calendar month 2
months prior to the month(s) specified in paragraph A.I.a. above during which the adjustment is to take effect, and the denominator of which shall be the CPI of the calendar month which is 2 months prior to (select one):  ̈ the first month of the term of this Lease as set forth in paragraph 1.3 (“Base Month”) or  ̈ (Fill in Other “Base
Month”):                                      
                  . The sum so calculated shall constitute the new monthly rent hereunder, but in no event, shall any such new monthly rent be less than the
rent payable for the month immediately preceding the rent adjustment. 
  
 c. In the event the compilation and/or publication of the CPI shall be transferred to any other governmental department or bureau or agency or shall be discontinued, then the index most nearly the same as the CPI shall be used to make such
calculation. In the event that the Parties cannot agree on such alternative index, then the matter shall be submitted for decision to the American Arbitration Association in accordance with the then rules of said Association and the decision of the
arbitrators shall be binding upon the parties. The cost of said Arbitration shall be paid equally by the Parties. 
  

	 ̈	II. Market Rental Value Adjustment(s) (MRV) 

  
 a. On (Fill in MRV Adjustment Date(s): _____________________________________________________________________ 
  
 __________________________________________________________________________________________________________ 
 the Base Rent shall be adjusted to the
“Market Rental Value” of the property as follows: 
  
 1) Four months prior to each Market Rental Value Adjustment Date described above, the Parties shall attempt to agree upon what the new MRV will be on the adjustment date. If agreement cannot be reached within thirty days, then: 

 
 (a) Lessor and Lessee shall immediately appoint a mutually acceptable
appraiser or broker to establish the new MRV within the next 30 days Any associated costs will be split equally between the Parties, or 
  
 (b) Both Lessor and Lessee shall each immediately make a reasonable determination of the MRV and submit such determination, in writing, to arbitration in
accordance with the following provisions: 
  
 (i) Within 15 days
thereafter, Lessor and Lessee shall each select an  ̈ appraiser or  ̈ broker (“Consultant” - check one) of the choice to act as an arbitrator. The two arbitrators so appointed shall immediately select a third mutually acceptable Consultant to act as a third
arbitrator. 
  
 (ii) The 3 arbitrators shall within 30 days of
the appointment of the third arbitrator reach a decision as to what the actual MRV for the Premises is, and whether Lessor’s or Lessee’s submitted MRV is the closest thereto. The decision of a majority of the arbitrators shall be binding
on the Parties. The submitted MRV which is determined to be the closest to the actual MRV shall thereafter be used by the Parties. 
  
 (iii) If either of the Parties fails to appoint an arbitrator within the specified 15 days, the arbitrator timely appointed by one of them shall reach a
decision on his or her own, and said decision shall be binding on the Parties. 
  
 (iv) The entire cost of such arbitration shall be paid by the party whose submitted MRV is not selected, ie. the one that is NOT the closest to the actual MRV. 
  
 2) Notwithstanding the foregoing, the new MRV shall not be less than the rent
payable for the month immediately preceding the rent adjustment. 
  

	 Initials:
	  	 [INITIALS APPEAR HERE]

	  	 Initials:
	  	 [INITIALS APPEAR HERE]

	 	  	 [INITIALS APPEAR HERE]

	  	 	  	  

  

 RENT ADJUSTMENT(S) 
 Page 1 of 2 

 b. Upon the establishment of each New Market Rental Value: 
  
 1) the new MRV will become the new “Base Rent” for
the purpose of calculating any further Adjustments, and 
  
 2) the first month of each Market Rental Value term shall become the new ‘Base Month’ for the purpose of calculating any further Adjustments. 
  
 þ III. Fixed Rental Adjustment(s) (FRA) 
  
 The Base Rent shall be increased to the following amounts on the dates set forth below:

  

	 On (Fill in FRA Adjustment Date(s)):
	 	 	 	 The New Base Rent shall be:

			
	 2/1/04 – 1/31/05
	 	 	 	 $$5,356.00 PER MONTH

			
	 2/1/05 – 1/31/06
	 	 	 	 $$5,516.68 PER MONTH

			
	 2/1/06 – 1/31/07
	 	 	 	 $$5,682.18 PER MONTH

			
	 2/1/07 – 1/31/08
	 	 	 	 $$5,852.64 PER MONTH

  
 B.
NOTICE: 
  
 Unless specified otherwise herein, notice of any
such adjustments, other than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the Lease. 
  
 C. BROKER’S FEE: 
  
 The Brokers shall be paid a Brokerage Fee for each adjustment specified above in accordance with paragraph 15 of the Lease. 
  
 NOTE: These forms are often modified to meet changing requirements of law and needs of the
industry. Always write or call to make sure you are utilizing the most current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 700 S. Flower Street, Suite 600, Los Angeles, Calif. 90017 
  

	 Initials:
	 	 [INITIALS APPEAR HERE]

	 	 	 	 Initials:
	 	

					
	 	 	 [INITIALS APPEAR HERE]

	 	 	 	 	 	 [INITIALS APPEAR HERE]

  

 RENT ADJUSTMENT(S) 
 Page 2 of 2 

 [GRAPHIC APPEARS HERE] 
  
 OPTION(S) TO EXTEND 
 STANDARD LEASE ADDENDUM 
  

	      Dated SEPTEMBER 14, 2002

		
	 By and Between (Lessor)
	 	 LEONARD KATZ & GERALD KATZ

		
	 	 	  

		
	 (Lessee)
	 	 PACIFIC MERCANTILE BANK

		
	 	 	  

	
	      Address of Premises: 1530 W. WHITTIER
BLVD
  
        LA
HABRA, CA

  
 Paragraph 51 
  
 A. OPTION(S) TO
EXTEND: 
  
 Lessor hereby grants to Lessee the option to extend the term of
this Lease for TWO (2) additional SIXTY (60) month period(s) commencing when the prior term expires upon each and all of the following terms and conditions: 
  
 (i) In order to exercise an option to extend, Lessee must give written notice of such election to Lessor and Lessor must receive the same at least 6 but
not more than 9 months prior to the date that the option period would commence, time being of the essence. If proper notification of the exercise of an option is not given and/or received, such option shall automatically expire. Options (if there
are more than one) may only be exercised consecutively. 
  
 (ii)
The provisions of paragraph 39, including those relating to Lessee’s Default set forth in paragraph 39.4 of this Lease, are conditions of this option. 
  
 (iii) Except for the provisions of this Lease granting an option or options to extend the term, all of the terms and conditions of this Lease except where
specifically modified by this option shall apply. 
  
 (iv) This
Option is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and without the intention of thereafter assigning or
subletting. 
  
 (v) The monthly rent for each month of the option
period shall be calculated as follows, using the method(s) indicated below: 
  
 (Check Method(s) to be Used and Fill in Appropriately) 
  

	 ̈	I. Cost of Living Adjustment(s) (COLA) 

  
 a. On (Fill in COLA Dates): _______________________________________________________________________________ 
  
 __________________________________________________________________________________________________________ 
 the Base Rent shall be adjusted by the
change, if any, from the Base Month specified below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for (select one):  ̈ CPI W (Urban Wage Earners and Clerical Workers) or  ̈ CPI U (All Urban Consumers), for (Fill in Urban Area):

  
 __________________________________________________________________________________________________________ 
 All Items (1982-1984=100), herein
referred to as “CPI”. 
  
 b. The monthly rent payable in
accordance with paragraph A.I.a. of this Addendum shall be calculated as follows: the Base Rent set forth in paragraph 1.5 of the attached Lease, shall be multiplied by a fraction the numerator of which shall be the CPI of the calendar month 2
months prior to the month(s) specified in paragraph A.I.a. above during which the adjustment is to take effect, and the denominator of which shall be the CPI of the calendar month which is 2 months prior to (select one):  ̈ the first month of the term of this Lease as set forth in paragraph 1.3 (“Base Month”) or  ̈ (Fill in Other “Base Month”)
                                        
                                        
                    . The sum so calculated shall constitute the new monthly rent hereunder but in no event, shall any such new monthly rent be
less than the rent payable for the month immediately preceding the rent adjustment. 
  
 c. In the event the compilation and/or publication of the CPI shall be transferred to any other governmental department or bureau or agency or shall be discontinued, the index most nearly the same as the CPI shall be
used to make such calculation. In the event that the Parties cannot agree on such alternative index, then the matter shall be submitted for decision to the American Arbitration Association in accordance with the then rules of said Association and
the decision of the arbitrators shall be binding upon the parties. The cost of said Arbitration shall be paid equally by the parties. 
  

	 ̈	II. Market Rental Value Adjustment(s) (MRV) 

  
 a. On (Fill in MRV Adjustment Date(s)) _____________________________________________________________________ 
  
 __________________________________________________________________________________________________________ 
 the Base Rent shall be adjusted to the
“Market Rental Value” of the property as follows: 
  
 1) Four months prior to each Market Rental Value Adjustment Date described above, the Parties shall attempt to agree upon what the new MRV will be on the adjustment date. If agreement cannot be reached, within thirty days, then: 

 
 (a) Lessor and Lessee shall immediately appoint mutually acceptable
appraiser or broker to establish the new MRV within the next 30 days. Any associated costs will be split equally between the Parties, or 
  
 (b) Both Lessor and Lessee shall each immediately make a reasonable determination of the MRV and submit such determination, in writing to arbitration in
accordance with the following provisions: 
  

	 Initials:
	  	 [INITIALS APPEAR HERE]

	  	 Initials:
	  	 [INITIALS APPEAR HERE]

	 	  	 [INITIALS APPEAR HERE]

	  	 	  	  

  

 Page 1 of 2 

 (i) Within 15 days thereafter, Lessor and Lessee shall each select an  ̈ appraiser or  ̈ broker (“Consultant” - check one) of their
choice to act as an arbitrator. The two arbitrators so appointed shall immediately select a third mutually acceptable Consultant to act as a third arbitrator. 
  

(ii) The 3 arbitrators shall within 30 days of the appointment of the third arbitrator reach a decision as to what the actual MRV for the Premises is,
and whether Lessor’s or Lessee’s submitted MRV is the closest thereto. The decision of a majority of the arbitrators shall be binding on the Parties. The submitted MRV which is determined to be the closest to the actual MRV shall
thereafter be used by the Parties. 
  
 (iii) If either of the
Parties fails to appoint an arbitrator within the specified 15 days, the arbitrator timely appointed by one of them shall reach a decision on his or her own, and said decision shall be binding on the Parties. 
  
 (iv) The entire cost of such arbitration shall be paid by the party whose
submitted MRV is not selected, ie. the one that is NOT the closest to the actual MRV. 
  
 2) Notwithstanding the foregoing, the new MRV shall not be less than the rent payable for the month immediately preceding the rent
adjustment. 
  
 b. Upon the establishment of each New Market
Rental Value: 
  
 1) the new MRV will become the
new “Base Rent” for the purpose of calculating any further Adjustments, and 
  
 2) the first month of each Market Rental Value term shall become the new “Base Month” for the purpose of calculating any further
Adjustments. 
  
 þ III. Fixed Rental
Adjustment(s) (FRA) 
  
 The Base Rent shall be increased to the following amounts
on the dates net forth below: 
  

	 On (Fill in FRA Adjustment Date(s)):
	  	The New Base Rent shall be:
		
	 2/1/08 – 1/31/09
	  	$ 6,028.21 PER MONTH
		
	 2/1/09 – 1/31/10
	  	 $ 6,209.05 PER MONTH

		
	 2/1/10 – 1/31/11
	  	 $ 6,395.32 PER MONTH

		
	 2/1/11 – 1/31/12
	  	 $ 6,587.17 PER MONTH

		
	 2/1/12 – 1/31/13
	  	 $ 6,784.78 PER MONTH

  
 SECOND OPTION 
  
  
 IF SECOND OPTION IS EXERCISED AS PER PARAGRAPH (51.A) ABOVE. THE BASE RENT SHALL BE INCREASED TO THE FOLLOWING AMOUNTS ON THE DATES SET FORTH BELOW:

  

	 ON (FILL IN FRA ADJUSTMENT DATE(S):
	  	THE NEW BASE RENT SHALL BE:
		
	 2/1/13 – 1/31/14
	  	 $ 6,988.32 PER MONTH

		
	 2/1/14 – 1/31/15
	  	 $ 7,197.96 PER MONTH

		
	 2/1/15 – 1/31/16
	  	 $ 7,413.89 PER MONTH

		
	 2/1/16 – 1/31/17
	  	 $ 7,636.30 PER MONTH

		
	 2/1/17 – 1/31/18
	  	 $ 7,865.38 PER MONTH

  
 B.
NOTICE: 
  
 Unless specified otherwise herein, notice of any
rental adjustments other than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the Lease. 
  
 C. BROKER’S FEE: 
  
 The Brokers shall be paid a Brokerage Fee for each adjustment specified above in accordance with paragraph 15 of the Lease. 
  
 NOTE: These forms are often modified to meet changing requirements of law and needs of the
industry. Always write or call to make sure you are utilizing the most current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 700 S. Flower Street, Suite 600, Los Angeles, Calif. 90017 
  

	 Initials:
	 	 [INITIALS APPEAR HERE]

	 	 	 	 Initials:
	 	 [INITIALS APPEAR HERE]

					
	 	 	 [INITIALS APPEAR HERE]

	 	 	 	 	 	

  

 Page 2 of 2 

 ADDENDUM TO LEASE 
  

This Addendum is made in reference to that certain Lease dated September 23, 2002, by and between LEONARD KATZ & GERALD KATZ (Landlord) and PACIFIC
MERCANTILE BANK (Tenant) for the Premises located at 1530 W. Whittier Blvd., in the City of La Habra, County of Orange County, State of California. 
  
 For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by both parties, Landlord and Tenant agree to the following: 

 

	 	52.	Tenant Improvements: Landlord shall allow Tenant to install an exterior accessible ATM at Tenant’s sole cost, the location of which is contemplated to be at or adjacent to the
entrance of the leased premises. 

  

	 	53.	Signage: Landlord shall allow Tenant to have 50% of the existing pole sign, and a Lighted sign on the Building at Tenant’s sole cost subject to city code and any applicable
city ordinances. 

  

	 	54.	Parking: Tenants understands that there are 29 stalls, at the front of the building, to be shared by Tenant’s on a first-come, first-serve basis. Landlord to provide Three (3)
reserved parking stalls for client use for banking and ATM use, which could be labeled, as “15 Minute Bank Parking,” which labeling shall be at Tenant’s sole cost. 

  

	 	55.	American Disabilities Act: Lessee will be responsible for all changes required for ADA compliance within its space. Landlord shall be responsible for any ADA compliance cost related
to the outside or the entrance to the building. 

  

	 	56.	Utilities: 

  

	 	a.	It is hereby understood that Tenant pays for all utilities and that there is only one (1) electrical metered serving the entire building consisting of two (2) Tenants, unit
“A” is The Summer Group/Insurance Agency, and unit “B” Pacific Mercantile Bank. The Summer Group/Insurance Agency shall provide a monthly electric bill to Pacific Mercantile Bank and the Bank shall pay to The Summer
Group/Insurance Agency 50% of the total bill in a timely manner. 

  

	 	b.	Water Bill. The Summer Group/Insurance Agency to provide a water bill for the entire building to Pacific Mercantile Bank. The Bank to pay 50% of entire bill to The Summer Group in a
timely manner. 

  

	 	57.	Landlord shall pay property taxes, insurance (see Paragraph 8 of the Lease) and all common area maintenance expenses. 

  

 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]