Document:

Employment Agreement Craig A. Norris

 Exhibit 10.4 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”), is made as of
this 22nd day of March, 2007, by and between THE PROVIDENCE SERVICE CORPORATION, a Delaware corporation, with its corporate headquarters located at 620 N. Craycroft, Tucson, AZ, its successors and assigns (hereinafter collectively referred to
as “Company”), and CRAIG A. NORRIS, an individual residing at 8825 N. Scenic Drive, Tucson, AZ 85743 (“Employee”). 
 BACKGROUND 
 WHEREAS, Employee is currently employed by the Company as its Chief Operating Officer (“COO”);
and 
 WHEREAS, the Company desires to continue to employ Employee, and Employee desires to continue to be employed by the Company,
all upon the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the facts, mutual promises, and
covenants contained herein and intending to be legally bound hereby, the parties hereto agree as follows: 
 1. Employment. The Company
hereby employs Employee and Employee hereby accepts employment by the Company, for the period set forth in Section 3 below and upon the terms and conditions set forth in this Agreement, subject to earlier termination pursuant to Section 6
below. 
 2. Office and Duties. 
 (a) During the term of this Agreement, Employee shall serve as COO of the Company, and shall report directly to the Chief Executive Officer (“CEO”), and be subject to the CEO’s supervision, control and direction. Employee
shall also serve on the Company’s Board of Directors (“Board”) as may be requested from time to time. 
 (b) In his capacity
as COO of the Company, Employee shall have such authority, perform such duties, discharge such responsibilities and render such services as are customary to, and consistent with his position, subject to the authority and direction of CEO, and shall
perform such additional duties and responsibilities as may be from time to time assigned to him by the CEO and the Board. 
 (c) The
Employee shall render his services diligently, faithfully and to the best of his ability, and shall devote substantially all of his working time, energy, skill and best efforts to the performance of his duties hereunder, in a manner that will
further the business and interests of the Company. 
 (d) During the term of this Agreement, Employee shall not be engaged in any business
activity which, in the reasonable judgment of the CEO and the Board, conflicts with Employee’s duties hereunder, whether or not such activity is pursued for pecuniary advantage. 
  

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 3. Term. This Agreement shall be effective for a term of three (3) years (“Term”)
commencing on March 22, 2007 (“Effective Date”), and if not previously terminated in accordance with the terms of this Agreement, the Term shall end three (3) years later. The Term shall be automatically extended and renewed for
a period of one (1) year from the end of the Term (“Renewal Date”) unless either the Company or Employee shall give written notice of non-renewal to the other party prior at least six (6) months prior to the end of the Term, in
which event this Agreement shall terminate at the end of the Term. Subject to the termination provisions contained herein, if this Agreement is renewed on the Renewal Date for an additional one (1) year period, it will automatically be renewed
on the anniversary of the Renewal Date and each subsequent year thereafter (the “Annual Renewal Date”) for a period of one (1) year , unless either party gives written notice of non-renewal to the other party at least six
(6) months prior to any Annual Renewal Date, in which case the Agreement will terminate on the Annual Renewal Date immediately following such notice. 
 4. Compensation. 
 (a) Base Salary. In consideration of the services rendered by Employee to
the Company during the term hereof, Employee shall receive an annual base salary of Two Hundred Sixty-Five Thousand and 00/100 Dollars ($265,000.00) (“Base Salary”), payable in equal periodic installments in accordance with the
Company’s regular payroll practices in effect from time to time. Employee’s Base Salary shall be reviewed at least annually by the CEO and the Board and/or a committee of the Board which has been delegated responsibility for employee
compensation matters (such committee to be referred to herein as the “Compensation Committee”) in accordance with the compensation policies and guidelines of the Company, and may be modified as a result of such review at the sole
discretion of the Board and/or the Compensation Committee. 
 (b) Bonus Plans/Incentive Compensation Programs. In addition to Base
Salary, during the Term, Employee shall be eligible to participate in any bonus plans or incentive compensation programs, if any, as may be in effect from time to time, at a level consistent with his position and with the Company’s then current
policies and practices (“Bonus”). 
 (c) Benefits. During the Term, Employee also shall be entitled to participate in all
fringe benefits, if any, as may be in effect from time to time which are generally available to the Company’s senior executive officers, and such other fringe benefits as the Board and/or Compensation Committee shall deem appropriate, subject
to eligibility requirements thereof (collectively, the “Benefits”). 
 (d) Vacation. During the Term, Employee shall be
entitled to the number of paid vacation days in each calendar year as determined by the Company from time to time for its senior executive officers. Vacation days which are not used during any calendar year may not be accrued or carried-over to the
next year, nor shall Employee be entitled to compensation for unused vacation days. 
 (e) Business Expenses. During the Term, the
Company shall pay or reimburse Employee for all reasonable expenses incurred or paid by Employee in the 

  

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performance of Employee’s duties hereunder, upon timely presentation of expense statements or vouchers and such other information as the Company may
reasonably require and in accordance with the generally applicable policies and practices of the Company. 
 (f) Withholding. All
payments made pursuant to this Agreement shall be subject to such withholding taxes as may be required by any applicable law. 
 5.
Representations of Employee. Employee represents to the Company that: (a) there are no restrictions, agreements or understandings whatsoever to which Employee is a party that would prevent, or make unlawful, his execution of this
Agreement and his employment hereunder; (b) his execution of this Agreement and his employment hereunder shall not constitute a breach of any contract, agreement or understanding, oral or written, to which he is a party, or by which he is
bound; and (c) he is of full capacity, free and able to execute this Agreement and to enter into this Agreement with the Company. 
 6.
Termination. This Agreement and Employee’s employment hereunder shall continue until terminated as provided herein. Upon termination of this Agreement and Employee’s employment hereunder, Employee shall immediately resign his
position as a member of the Company’s Board if he is serving in such capacity. 
 (a) Termination by Company for Cause. The
Company shall have the right to terminate this Agreement and his employment hereunder at any time for “Cause”. For purposes of this Agreement, the term “Cause” shall mean the following: 
 (i) Employee commits fraud or theft against the Company or any of its subsidiaries, affiliates, joint ventures and related organizations, including any
entity managed by the Company (collectively referred to as “Affiliates”), or is indicted, convicted of, or pleads guilty or nolo contendere to, a felony; or 
 (ii) In carrying out his duties hereunder, the Employee engages in conduct that constitutes gross neglect or willful misconduct and that results, in
either case, in material economic harm to the Company or its Affiliates; or 
 (iii) Employee materially breaches any provision of this
Agreement (including but not limited to the restrictive covenants contained in Paragraph 8 below) or breaches any fiduciary duty or duty of loyalty owed to the Company or its Affiliates, and such breach continues uncured for a period 10 days after
written notice from the Company to the Employee specifying the failure, refusal, or violation and the Company’s intention to terminate the Term for Cause; or 
 (iv) Employee engages in conduct tending to bring the Company or its Affiliates into public disgrace; or 
 (v) Employee repeatedly neglects or refuses to perform duties or responsibilities as directed by the CEO, the Board or any executive committee established by the Board, or violates any express direction of any lawful rule or regulation
established by the Company or the Board or any committee established by the Board which is consistent with the 

  

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scope of Employee’s duties under this Agreement, and such failure, refusal, or violation continues uncured for a period 10 days after written notice
from the Company to Employee specifying the failure, refusal, or violation and the Company’s intention to terminate this Agreement for Cause; or 
 (vi) Employee commits any acts or omissions resulting in or intended to result in direct material personal gain to the Employee at the expense of the Company or its Affiliates; or 
 (vii) Employee materially compromises trade secrets or other confidential and proprietary information of the Company or its Affiliates. 
 “Cause” shall not include a bona fide disagreement over a corporate policy, so long as Employee does not willfully violate on a continuing
basis specific written directions from the CEO, the Board or any executive committee of the Board, which directions are consistent with the provisions of this Agreement. Action or inaction by Employee shall not be considered “willful”
unless done or omitted by him intentionally and without his reasonable belief that his action or inaction was in the best interests of the Company or its Affiliates, and shall not include failure to act by reason of total or partial incapacity due
to physical or mental illness. 
 (b) Termination by Company upon the Death or Disability of Employee. The Company shall have the
right to terminate this Agreement and Employee’s employment hereunder at any time upon the death or Disability of Employee. The term, “Disability”, as used herein, means any physical or mental illness, disability or incapacity which
prevents Employee from performing the essential functions of his job, with or without reasonable accommodations, hereunder for a period of not less than one hundred fifty (150) consecutive days or for an aggregate of one hundred eighty
(180) days during any period of twelve (12) consecutive months. Periods where Employee can perform the essential functions of his job with a reasonable accommodation shall not be included in the determination of a Disability hereunder.
During any period of Disability, Employee agrees to submit to reasonable medical examinations upon the reasonable request, and at the expense, of the Company. 
 (c) Termination By Company Without Cause. The Company shall have the right to terminate this Agreement and Employee’s employment hereunder at any time without Cause and/or without the occurrence of
Employee’s death or Disability upon thirty (30) days written notice to Employee. The effective date of such termination shall be after the completion of the thirty (30) day notice period. 
 (d) Termination By Employee For Good Reason. Employee shall have the right to terminate this Agreement and his employment hereunder at any time
during the Term of this Agreement for “Good Reason” upon sixty (60) days prior written notice to the Company’s Board. The effective date of such termination shall be after the completion of the sixty (60) day notice period.
For purposes of this Agreement, “Good Reason” shall mean any of the following: 
 (i) the assignment to Employee by the Company of
any duties inconsistent with Employee’s status with the Company or a substantial alteration in the nature or 

  

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status of Employee’s responsibilities from those in effect on the Effective Date hereof, or a reduction in Employee’s titles or offices as in
effect on the Effective Date hereof, except in connection with the termination of his employment for Cause or Disability or as a result of Employee’s death, or by Employee other than for Good Reason, or the Company’s establishment of a new
office to which Employee may be asked to report, or the Company’s hiring of a President or other officer which may result in the reassignment of some of Employee’s duties to someone in the Company below the level of Employee. 

(ii) a reduction by the Company in Employee’s Base Salary as in effect on the Effective Date or as the same may be increased from time to time
during the term of this Agreement; 
 (iii) the relocation of Employee to a Company office located more than ninety (90) miles from
Tucson, Arizona; or 
 (iv) any material breach by the Company of a material term or provision contained in this Agreement, which breach is
not cured within thirty (30) days following the receipt by the Board of written notice of such breach. 
 (v) the Company gives
Employee proper notice in accordance with Section 3 above that the Agreement will not be extended or renewed for an additional one (1) year period from the end of the Term or from the end of any subsequent Annual Renewal Date. 

(e) Termination by Employee for Other than Good Reason. If Employee shall desire to terminate his employment hereunder for other than Good
Reason, he shall first give the Company not less than ninety (90) days prior written notice of termination. Upon a termination of Employee’s employment with the Company under this Section 6(e), the effective date of termination shall
be the date set forth in employee’s resignation notice (assuming such date is in compliance with the notice provisions of this Section 6(e)) or an earlier date after the Company’s receipt of such notice as determined by the Company,
in its sole discretion, but not earlier than the date on which the Company learned of Employee’s decision to terminate his employment for other than Good Reason. 
 (f) Notice of Termination. Any termination, except for death, pursuant to this Section 6 shall be communicated by a Notice of Termination. For purposes of this Agreement, a “Notice of
Termination” shall mean a written notice which shall indicate those specific termination provisions in this Agreement relied upon and which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination
of the Employee’s employment under the provisions so indicated. The Notice of Termination shall also set forth that Employee’s employment is terminated and be delivered in accordance with the terms of this Agreement. 
 Notwithstanding anything to the contrary set forth herein, the provisions of Sections 8, 9 and 10 shall survive the end of the Term, the non-renewal of
the Agreement, and/or the termination of Employee’s employment hereunder for any reason, and shall remain in full force and effect thereafter. 
  

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 7. Payments Upon Termination and Change in Control. 
 (a) Termination for Cause. In the event Employee’s employment hereunder is terminated for Cause, all of Employee’s rights to his Base
Salary, Benefits and Bonus, if any, shall immediately terminate as of the date of such termination, except that Employee shall be entitled to any earned and unpaid portion of his Base Salary and accrued Benefits up to the date of termination, less
all deductions or offsets for amounts owed by Employee to the Company. Employee shall not be entitled to any Bonus, prorated or otherwise. The Company shall have no further obligations to Employee under the Agreement. 
 (b) Termination Due to Death or Disability. In the event Employee’s employment hereunder is terminated due to his death or Disability, all
of Employee’s rights to his Base Salary, Benefits and Bonus, if any, shall immediately terminate as of the date of such termination, except that Employee (or, in the event that Employee’s employment hereunder is terminated due to
Employee’s death, Employee’s heirs, personal representative or estate) shall be entitled to any earned and unpaid portion of his Base Salary and accrued Benefits up to the date of termination less all deductions or offsets for amounts owed
by Employee to the Company, and any accrued Bonus prorated through the date of termination. Subject to the provisions of the applicable Company stock option plan, should Employee’s death occur within one (1) year following his termination
for Disability, but prior to his exercise of any options vested at the date of termination, Employee’s estate shall be entitled to exercise Employee’s options for the remainder of the one (1) year period. The Company shall have
no further obligations to Employee under the Agreement. 
 (c) Termination By
Company Without Cause or By Employee For Good Reason. If the Company terminates Employee’s employment other than for Cause or the occurrence of Employee’s death or Disability, or if Employee terminates his employment for Good Reason,
Employee shall be entitled to receive severance in the gross amount of one and one half (1 1/2) times his
Base Salary in effect at the time of termination (so long as Employee is not in breach of this Agreement) (“Severance Payment”), provided that Employee executes, and does not revoke, a General Release of all claims relating to his
employment and termination from employment in a form provided by the Company. Subject to Section 9 hereof, the Severance Payment shall be made to the Employee in a lump sum payment, minus appropriate tax and other withholdings, ten
(10) days after the General Release is executed by Employee and returned and received by the Company, provided Employee does not revoke the General Release. Employee understands that should he fail or refuse to execute the General Release
provided by the Company, or revoke such General Release, he shall not be entitled to the Severance Payment under this section. The Company shall have no further obligations to Employee under the Agreement. 
 (d) Termination By Employee For Other Than Good Reason. In the event Employee terminates his employment for other than Good Reason, all of
Employee’s rights to his Base Salary, Benefits and Bonus, if any, shall immediately terminate as of the date of termination, except that Employee shall be entitled to any earned and unpaid portion of his Base Salary and accrued Benefits up to
the date of termination. Employee shall not be entitled to any Bonus, prorated or otherwise. The Company shall have no further obligations to Employee under the Agreement. 
  

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 (e) Payment Upon Change in Control. In the event of a “Change in Control” of the
Company (as defined herein), Employee shall receive a lump sum payment equal to two (2) times Employee’s average annual W-2 compensation from the Company for the most recent five (5) taxable years ending before the date on which the
Change in Control occurs (or such portion of such period during which Employee performed personal services for the Company), but not in excess of the amount specified in Code Section 162(m)(1) (currently, $1,000,000) or any successor Code
Section thereto; provided, however, that if such lump sum payment, either alone or together with other payments or benefits, either cash or non-cash, that Employee has the right to receive from the Company, including, but not limited
to, accelerated vesting or payment of any deferred compensation, options, stock appreciation rights or any benefits payable to Employee under any plan for the benefit of employees, which would constitute an “excess parachute payment” (as
defined in Section 280G of the Code), then such lump sum payment or other benefit shall be reduced to the largest amount that will not result in receipt by Employee of a parachute payment (“Change in Control Payment”). The Change in
Control Payment will be paid to Employee upon the closing of the transaction causing the Change in Control. A Change in Control will have no other effect on this Agreement which will remain in full force and effect. 
 (i) Definition of Change in Control. For purposes of this Agreement, the term “Change in Control” shall have the definition as set
forth in the Providence Service Corporation 2006 Long Term Incentive Plan which defines “Change in Control” as an event or events, in which: 
 (A) any “person” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “1934 Act”) (other than (i) the Company, (ii) any subsidiary of the
Company, (iii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or of any subsidiary of the Company, or (iv) any company owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company), is or becomes the “beneficial owner” (as defined in Section 13(d) of the 1934 Act), together with all affiliates and Associates (as such terms are
used in Rule 12b-2 of the General Rules and Regulations under the 1934 Act) of such person, directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding
securities; 
 (B) the stockholders of the Company approve a merger or consolidation of the Company with any other company, other than
(i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary of the Company, at least 65% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) after which no
“person” (with the method of determining “beneficial ownership” used in clause (A) of this definition) owns more than 25% of the combined voting power of the securities of the Company or the surviving entity of such
merger or consolidation; 
  

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 (C) during any period of two consecutive years (not including any period prior to the execution of the
2006 Plan), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has conducted or threatened a proxy contest, or has entered into an agreement with the Company
to effect a transaction described in clause (A), (B) or (D) of this definition) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office, who either were directors at the beginning of the period or whose election or nomination for election was previously so approved cease for any reason to constitute at least a majority thereof; or 
 (D) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of
all or substantially all of the Company’s assets. 
 (ii) If this Agreement provides for the payment of deferred compensation subject
to Section 409A of the Code, any payment of such deferred compensation by reason of a Change in Control shall be made only if the Change in Control is one described in subsection (a)(2)(A)(v) of Section 409A and the guidance
thereunder and shall be paid consistent with the requirements of Section 409A. If any deferred compensation that would otherwise be payable by reason of a Change in Control cannot be paid by reason of the immediately preceding sentence, it
shall be paid as soon as practicable thereafter consistent with the requirements of Section 409A, as determined by the Company. 
 (f)
Recognition. Employee recognizes and accepts that the Company shall not, in any case, be responsible for any additional amount, severance pay, termination pay, severance obligation or other payments or damages whatsoever arising from the
termination of Employee’s employment, above and beyond those specifically provided for herein. 
 8. Restrictive Covenants.

 (a) Non-Competition. During the Term and any renewal periods, and for a period of eighteen (18) months after this Agreement is
terminated for any reason, Employee will not, in any capacity (including, but not limited to, owner, partner, member shareholder, consultant, advisor, financier, agent, employee, officer, director, manager or otherwise), directly or indirectly, for
his own account or for the benefit of any natural person, corporation, partnership, trust, estate, joint venture, sole proprietorship, association, cooperative or other entity (“Person”), establish, engage in, work for, or be connected
with, except as an employee of the Company, any business in competition with the Business of the Company (as defined in Section 8(i) below), if such business competes with the Business of the Company in any State, county, or municipality where
the Company or its Affiliates conduct business, are preparing to conduct business or have conducted business during the Term. 
 (b)
Non-Solicitation/Non-Piracy. During the Term and any renewal periods, and for a period of eighteen (18) months after this Agreement is terminated for any reason, Employee will not, directly or indirectly, for his own account or for the
benefit of any Person or entity: 
  

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 (i) solicit, service, contact, or aid in the solicitation or servicing of any Person or entity which is
or was a customer, prospective customer, client, prospective client, contractor, subcontractor or supplier of the Company or its Affiliates within three (3) years prior to Employee’s termination (“Company Customers/Clients”), for
the purpose of (a) selling services or goods in competition with the Business of the Company; (b) inducing Company Customers/Clients to cancel, transfer or cease doing business in whole or in part with the Company or its Affiliates or
(c) inducing Company Customers/Clients to do business with any Person or business entity in competition with the Business of the Company (as hereafter defined). 
 (ii) solicit, aid in solicitation of, induce, contact for the purpose of, encourage or in any way cause any employee of the Company or its Affiliates to leave the employ of the Company or its Affiliates, or interfere
with such employee’s relationship with the Company or its Affiliates. 
 (c) Non-Disclosure. Other than in furtherance of the
Business of the Company, in the ordinary course in his capacity as an employee hereunder, Employee will not, at any time, except with the express prior written consent of the Board, directly or indirectly, disclose, communicate or divulge to any
Person or entity, or use for the benefit of any Person or entity, any secret, confidential or proprietary knowledge or information with respect to the conduct or details of the Business of the Company including, but not limited to, customer and
client lists, customer and client accounts and information, prospective client, customer, contractor and subcontractor lists and information, services, techniques, methods of operation, pricing, costs, sales, sales strategies and methods, marketing,
marketing strategies and methods, products, product development, research, know-how, policies, financial information, financial condition, business strategies and plans and other information of the Company or its Affiliates which is not generally
available to the public and which has been developed or acquired by the Company or its Affiliates with considerable effort and expense. Upon the expiration or termination of Employee’s employment under this Agreement, Employee shall immediately
deliver to the Company all memoranda, books, papers, letters, and other data (whether in written form or computer stored), and all copies of same, which were made by Employee or otherwise came into his possession or under his control at any time
prior to the expiration or termination of his employment under this Agreement, and which in any way relate to the Business of the Company as conducted or as planned to be conducted by the Company or its Affiliates on the date of the expiration or
termination. 
 (d) Intellectual Property. Employee will promptly communicate to the Company, in writing when requested, all
software, designs, techniques, concepts, methods and ideas, other technical information, marketing strategies and other ideas and creations pertaining to the Business of the Company which are conceived or developed by Employee alone or with others,
at any time (during or after business hours) while Employee is employed by the Company or its Affiliates. Employee acknowledges that all of those ideas and creations are inventions and works for hire, and will be the Company’s exclusive
property. Employee will sign any documents which the Company deems necessary to confirm its ownership of those ideas and creations, and Employee will cooperate with the Company in order to allow the Company to take full advantage of those ideas and
creations. 
  

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 (e) Non-Disparagement. Employee will not, at any time, publish or communicate disparaging or
derogatory statements or opinions about the Company or its Affiliates, including but not limited to, disparaging or derogatory statements or opinions about the Company’s or its Affiliates’ management, products or services, to any third
party. It shall not be a breach of this section for Employee to testify truthfully in any judicial or administrative proceeding or to make statements or allegations in legal filings that are based on Employee’s reasonable belief and are not
made in bad faith. 
 (f) Enforcement. Employee acknowledges that the covenants and agreements of this Section 8
(“Covenants”) herein are of a special and unique character, which give them peculiar value, the loss of which cannot be reasonably or adequately compensated for in an action at law. Employee further acknowledges that any breach or threat
of breach by him of any of the Covenants will result in irreparable injury to the Company for which money damages could not be adequate to compensate the Company. Therefore, in the event of any such breach or threatened breach, the Company shall be
entitled, in addition to all other rights and remedies which the Company may have at law or in equity, to have an injunction issued by any competent court enjoining and restraining Employee and/or all other Persons involved therein from committing a
breach or continuing such breach. The remedies granted to the Company in this Agreement are cumulative and are in addition to remedies otherwise available to the Company at law or in equity. The Covenants contained in this Section 8 are
independent of any other provision of this Agreement, and the existence of any claim or cause of action which Employee or any such other Person may have against the Company shall not constitute a defense or bar to the enforcement of any of the
Covenants. If the Company is obliged to resort to litigation to enforce any of the Covenants which has a fixed term, then such term shall be extended for a period of time equal to the period during which a material breach of such Covenant was
occurring, beginning on the date of a final court order (without further right of appeal) holding that such a material breach occurred, or, if later, the last day of the original fixed term of such Covenant. 
 (g) Acknowledgements. Employee expressly acknowledges that the Covenants are a material part of the consideration bargained for by the Company,
and, without the agreement of Employee to be bound by the Covenants, the Company would not have agreed to enter into this Agreement. Employee further acknowledges and agrees that the Business of the Company and its services are highly competitive,
and that the Covenants contained in this Section 8 are reasonable and necessary to protect the Company’s legitimate business interests. In addition, Employee acknowledges that in the event his employment with the Company terminates, he
will still be able to earn a livelihood without violating this Agreement, and that the Covenants contained in this Section 8 are material conditions to my employment and continued employment with the Company. 
 (h) Scope. If any portion of any Covenant or its application is construed to be invalid, illegal or unenforceable, then the remaining portions
and their application shall not be affected thereby, and shall be enforceable without regard thereto. If any of the Covenants is determined to be unenforceable because of its scope, duration, geographical area or similar factor, then the court or
other trier of fact making such determination shall modify, reduce or limit such scope, duration, area or other factor, and enforce such Covenant to the extent it believes is lawful and appropriate. 
  

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 (i) Business of the Company. The term “Business of the Company”, as used herein, shall
mean the provision by the Company or its Affiliates of social services, counseling, client monitoring and mentoring, substance abuse treatment and counseling, school support services, case management and foster care services to children, adults and
families in community based settings such as a client’s home, school or workplace, intake, assessment and referral, case management and network management services to governmental agencies and provider networks, educational tutoring, job
readiness and private parole or probation, and any other business in which the Company or its Affiliates were actually engaged or planning to be engaged during the Term. 
 (j) Costs, Expenses in the Event of Breach. In the event that Employee breaches or attempts to breach the Covenants contained in this Section 8, the Company shall be entitled to reimbursement from Employee
for all costs and expenses associated with any successful action to enforce any of the Covenants contained in Section 8, including but not limited to reasonable attorneys’ fees and costs of litigation. Should the Company file an action
against Employee relating to a breach of the Covenants contained in Section 8, and a court of competent jurisdiction determines that Employee did not breach any of those Covenants, Employee shall be entitled to reimbursement from the Company of
all costs and expenses associated with defending against such action asserting a breach, including reasonable attorneys’ fees and costs. 
 9. Section 409A of the Code. 
 (a) Amounts payable under this Agreement are intended either to be exempt from the rules
of Section 409A of the Code or to satisfy those rules and shall be construed accordingly. The Company shall not be liable to Employee with respect to any Agreement-related adverse tax consequences arising under Section 409A or other
provision of the Code. 
 (b) If any provision of this Agreement contravenes any regulations or Treasury guidance promulgated under Code
Section 409A or could cause an amount payable hereunder to be subject to the interest and penalties under Code Section 409A, such provision of the Agreement shall be deemed automatically modified to maintain, to the maximum extent
practicable, the original intent of the applicable provision without violating the provisions of Code Section 409A. 
 (c)
Notwithstanding any provisions of this Agreement to the contrary, if Employee is a “specified employee” (as such term is defined for purposes of Code Section 409A), no Severance Payment shall be made under Section 7(c) hereof
prior to the six-month anniversary of Employee’s separation of service to the extent such six-month delay in payment is required to comply with Code Section 409A. To the extent that this Section 9(c) applies to any Severance Payment
under Section 7(c) hereof, the Company shall, as soon as practicable following Employee’s termination of employment, and after Employee executes and does not revoke the General Release of all claims as referenced in Section 7(c),
deposit an amount equal to the gross amount of such Severance Payment into an irrevocable Rabbi Trust in the form prescribed by Internal Revenue Service Revenue Procedure 92-64. Such Rabbi Trust shall be established and maintained by the Company, at
its own expense, pending the distribution of such 

  

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amount to Employee under this Agreement. The Trustee shall be a financial institution selected by the Company, and the Trustee shall invest all amounts
deposited therein with the purpose of preserving the Trust principal. All principal and income from the Rabbi Trust shall be paid to Employee on the first day following the six-month anniversary of Employee’s separation from service. The
Trustee shall withhold or cause to be withheld all withholding taxes as may be required by applicable law. 
 10. Miscellaneous.

 (a) Indulgences, Etc. Neither the failure, nor any delay, on the part of either party to exercise any right, remedy, power or
privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same, or of any other right, remedy, power or
privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it
is in writing and is signed by the party asserted to have granted such waiver. 
 (b) Controlling Law; Consent to Arbitration; Service of
Process. 
 (i) This Agreement and all questions relating to its validity, interpretation, performance and enforcement (including,
without limitation, provisions concerning limitations of actions), shall be governed by and construed in accordance with the laws of the State of Arizona (notwithstanding any conflict-of-laws doctrines of such state or other jurisdiction to the
contrary), and without the aid of any canon, custom or rule of law requiring construction against the draftsman. 
 (ii) Except to the
extent provided for in Section 8 above (relating to injunctive relief and other equitable remedies), the Company and Employee agree that any claim, dispute or controversy arising under or in connection with this Agreement, or otherwise in
connection with Employee’s employment by the Company or termination of his employment (including, without limitation, any such claim, dispute or controversy arising under any federal, state or local statute, regulation or ordinance or any of
the Company’s employee benefit plans, policies or programs) shall be resolved solely and exclusively by binding, confidential, arbitration. The arbitration shall be held in Tucson, Arizona (or at such other location as shall be mutually agreed
by the parties). The arbitration shall be conducted in accordance with the National Rules for the Resolution of Employment Disputes (the “Rules”) of the American Arbitration Association (“the AAA”) in effect at the time of the
arbitration, except that the arbitrator shall be selected by alternatively striking from a list of five arbitrators supplied by the AAA. All fees and expenses of the arbitration, including a transcript if either requests, shall be borne equally by
the parties, however, all costs for the services of the arbitrator shall be borne solely by the Company. Each party is responsible for the fees and expenses of its own attorneys, experts, witnesses, and preparation and presentation of proofs and
post-hearing briefs (unless the party prevails on a claim for which attorney’s fees are recoverable under law). In rendering a decision, the arbitrator shall apply all legal principles and standards that would govern if the dispute were being
heard in court. This includes the availability of all remedies that the parties could obtain in court. In addition, all statutes of limitation and defenses that would be 

  

 Page 12 of 15 

 
applicable in court, will apply to the arbitration proceeding. The decision of the arbitrator shall be set forth in writing, and be binding and conclusive on
all parties. Any action to enforce or vacate the arbitrator’s award shall be governed by the Federal Arbitration Act, if applicable, and otherwise by applicable state law. If either the Company or Employee improperly pursues any claim, dispute
or controversy against the other in a proceeding other than the arbitration provided for herein, the responding party shall be entitled to dismissal or injunctive relief regarding such action and recovery of all costs, losses and attorney’s
fees related to such action. 
 (iii) Each of the parties hereto hereby consents to process being served in any suit, action or proceeding
of any nature, by the mailing of a copy thereof by registered or certified first-class mail, postage prepaid, return receipt requested, to them at their respective addresses set forth in Section 10(c) hereof. Each of parties hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, all claims of error by reason of any such service pursuant to the terms hereof (but does not waive any right to assert lack of subject matter jurisdiction) and agrees that such
service (A) shall be deemed in every respect effective service of process in any such suit, action or proceeding and (B) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service. 

(iv) Nothing in this Section 10(b) shall affect the right of any party hereto to serve process in any manner permitted by law or affect the
right of any party to bring proceedings against any other party in the courts of any jurisdiction or jurisdictions. 
 (c) Notices.
All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given, made and received only when delivered (personally, by courier service such as Federal
Express, or by other messenger) or when deposited in the United States mails, registered or certified mail, postage prepaid, return receipt requested, addressed as set forth below: 
  

	 	(i)	If to Employee: 

 Craig A. Norris 
 8825 N. Scenic Drive 
 Tucson, AZ 85743

  

	 	(ii)	If to the Company: 

 The Providence Service Corporation

 620 N. Craycroft 
 Tucson, AZ
85711 
 Attention: Board of Directors 
 In addition, notice by mail shall be by air mail if posted outside of the continental United States. 
 Any party may alter the
addresses to which communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this Section for the giving of notice. 
  

 Page 13 of 15 

 (d) Assignment of Agreement. The rights and obligations of both parties under this Agreement
shall inure to the benefit of and shall be binding upon their heirs, successors and assigns. The Company may assign or otherwise transfer its rights under this Agreement, including but not limited to all Covenants contained in Section 8 above,
to any successor or affiliated business or corporation whether by sale of stock, merger, consolidation, sale of assets or otherwise. This Agreement may not, however, be assigned by Employee to a third party, nor may Employee delegate his duties
under this Agreement. 
 (e) Execution in Counterparts. This Agreement may be executed in any number of counterparts, including by
facsimile, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more
counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. 
 (f) Provisions Separable. The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other
or others of them may be invalid or unenforceable in whole or in part. 
 (g) Entire Agreement. This Agreement contains the entire
understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings between the parties, inducements or conditions, express or implied, oral or written, except
as herein contained. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing.

 (h) Section Headings. The Section headings in this Agreement are for convenience only; they form no part of this Agreement and
shall not affect its interpretation. 
 (i) Gender, Etc. Words used herein, regardless of the number and gender specifically used,
shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context indicates is appropriate. 
 (j) Independent Review and Consultation. Employee is hereby advised to consult with an attorney before signing this Agreement. Employee
acknowledges that it is his decision whether or not to do so. 
 (k) Number of Days. In computing the number of days for purposes of
this Agreement, all days shall be counted, including Saturdays, Sundays and holidays; provided, however, that if the final day of any time period falls on a Saturday, Sunday or holiday on which entities which are provincially regulated
are or may elect to be closed, then the final day shall be deemed to be the next day which is not a Saturday, Sunday or such holiday. 
  

 Page 14 of 15 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement, intending to be legally bound
hereby, as of the date first above written. 
  

			
	THE PROVIDENCE SERVICE CORPORATION
		
	By:	 	 /s/ Steve Geringer

	Name:	 	Steve Geringer
	Title:	 	Chairman Compensation Committee
	
	CRAIG A. NORRIS
	
	 /s/ Craig A. Norris

 [Signature Page to Employment Agreement of Craig A. Norris] 
  

 Page 15 of 15Lease dated May 21, 2001

 EXHIBIT 10.7 
 SMOKE TREE VILLAGE LEASE OFFICE BUILDING 
 THIS LEASE is made and entered into this 21st day of May, 2001,
by and between J. W. WOOD TRUST dba Smoke Tree Village Shopping Center at 1729 East Palm Canyon Drive, Suite 117, and CANYON NATIONAL BANK hereinafter respectively referred to as “Landlord” and “Tenant” without regard
to number or gender. 
 1. PREMISES. Landlord hereby leases to Tenant and Tenant hereby hires from Landlord those certain premises, together
with appurtenances, hereinafter referred to as the “premises” and described on Exhibit “A” attached hereto and made a part hereof. The premises, Suite No. 200/6, comprise approximately 1664 square feet and are
a portion of the Smoke Tree Village Business and Professional Center, located at 1729 East Palm Canyon Drive, Palm Springs, Riverside County, California. 
 2. DEPOSITS. Tenant has paid to Landlord and Landlord acknowledges receipt of deposit as follows: 
 (a) The sum of two thousand four hundred and ninety dollars ($2,490.00) which shall
be applied by Landlord to the first (1st) monthly payment of the items specified in Paragraph 4 to become due
and payable under this Lease; and 
 (b) The sum of two thousand four hundred and ninety dollars ($2,490,00) which shall be
security for the full and complete performance of all Tenant’s obligations hereunder. Should Tenant vacate or surrender the premises prior to the end of the demised term, said sum may be, at the option of the Landlord, applied by Landlord as
part (but not exclusive) payment of Landlord’s damages resulting therefrom. Even though Tenant has not vacated or surrendered the demised premises, said security deposit may, during the term of this Lease, at the option of Landlord, be used to
correct any breach of Tenant’s obligations under this Lease. Should all or any portion of said security deposit be used to cure any breach of Tenant, Tenant shall, within five (5) days after demand by Landlord, replenish said security
deposit to the original amount set forth hereinabove. Upon expiration of said Lease, if Tenant shall surrender said premises to Landlord in the condition and at the time herein provided and shall have complied with all terms, covenants and
conditions of this Lease, then Landlord shall, within thirty (30) days after satisfaction of all conditions, refund said deposit for that portion remaining after all just offsets to Tenant. Tenant shall be entitled to no interest payments upon
said deposit and Landlord shall have the right to co-mingle said deposit with any other funds of Landlord. 
 3. TERM. The term of this
Lease shall be for a period of three (3) years, commencing on the 1st day of July, 2001 and ending on the 30th day of June, 2004 and two (2) six (6) year renewal options each at fair market value. 
 4. MONTHLY PAYMENTS. Tenant shall pay to Landlord monthly rental for the premises in the sum of
one thousand three hundred and seventy dollars ($1,370.00) starting on the 1st day of September 2001, per month which sum shall be paid in advance on the first (1st) day of each calendar month throughout the term of the Lease, as set forth in Article Three hereof, with proration of rentals for any partial calendar
month of the term hereof and subject to annual CPI increases. 
  

					
	 April 17, 1995
	  	-1-	  	

 Tenant shall also pay Tenant’s proportionate share of the
costs specified in Paragraphs 7, 9 and 10 for parking and common facilities, utility services, utility maintenance costs, management fees and real estate taxes and it is estimated that Tenant’s proportionate share of these costs shall be one
thousand one hundred and twenty dollars ($1,120.00) per month due and payable on the first (1st) day of
each month, commencing on the first (1st) day of September, 2001, and will be subject to annual adjustments and
/or surcharge for increased utility rates. 
 All payments to be paid by Tenant
to Landlord shall be in lawful money of the United States of America and shall be paid without deduction of offset, prior notice or demand, and at such place or places as may be designated from time to time by Landlord. 
 Landlord and Tenant agree than in the event the premises are not completed and possession tendered to Tenant on or prior to the date of commencement of the Lease term,
then said minimum monthly rental shall commence on (i) the day the premises are tendered to Tenant, or (ii) the date Tenant opens for business, whichever shall first occur. 
 In the event of the inability of Landlord to deliver possession of the premises at the time of the commencement of the term of this Lease, neither Landlord nor Landlord’s agents shall be liable for any damage
caused thereby, nor shall this Lease thereby become void or voidable, nor shall the term herein specified be in any way extended, but in such event, Tenant shall not be liable for any rent until such time as Landlord can deliver possession of the
premises, but the commencement date and the term of this Lease shall be extended equivalent to the delay in delivering possession and until the premises are capable of delivery (provided, however, if said premises are not capable of delivery by
Landlord to Tenant by the 1st day of June, 2001, either party may by written notice to the other cancel this Lease and all parties shall be relieved of any further responsibility hereunder). 
 5. USE. The premises may be used for the purpose of conducting an OFFICE and for no other purpose or purposes. 
 Tenant shall not use the premises nor permit any part thereof to be used for any purposes in violation of any law, ordinance, or regulation. Tenant shall, at
Tenant’s sole cost, comply with any and all insurance requirements pertaining to the premises or the use thereof, in accordance with the terms hereinafter stated in paragraph 13. Tenant shall also maintain reasonable fire insurance covering the
building and appurtenances of which the premises are a part. 
 In the event of any use of the premises or alteration thereof by Tenant, which results in an
increase in Landlord’s insurance premiums against the premises or any portion thereof or any portion of the shopping center of which the premises are a part, Tenant promptly, upon demand, shall reimburse Landlord for the increased cost of such
insurance. 
 Tenant agrees that it will not at any time during the term of this Lease and any extension hereof, keep or display any merchandise or other
objects on or otherwise obstruct any sidewalks or other common areas of the shopping center of which the premises are a part. 
  

					
	 April 17, 1995
	  	-2-	  	

 Upon termination of this Lease, Tenant shall redeliver the premises to Landlord in the same condition as said premises
were received by Tenant, subject to any improvements, alterations or remodeling performed pursuant to this Lease, reasonable wear and tear excepted. 
 6. CONSTRUCTION AND REMODELING. Landlord and Tenant hereby agree that, after the execution of this Lease, they will each commence and pursue to completion the construction of the improvements for which Landlord and Tenant are
responsible as set forth on Exhibit “B” (“Description of Landlord’s work and Tenant’s work”), which is attached hereto and incorporated herein by reference. 
 7. REAL ESTATE TAXES. In addition to all rentals herein reserved, Tenant shall pay to Landlord his pro-rata share of any increase in the Real Estate Taxes and Assessments levied upon and assessed against
the portion of the shopping center and improvements thereon, described in Exhibit “C” hereto as “Parcel No. 5”, of which the premises are a part, for each year of the term of this Lease over and above the taxes for the tax
year ending June 30, 1979. Tenant’s “pro-rata share” shall be a proportion arrived at in comparing the total square footage of Tenant’s premises as it bears to the total Leaseable building space of Parcel No. 5 as
hereinafter provided. Such increases in taxes shall be payable within thirty (30) days after receipt by Tenant of a statement in writing from Landlord setting forth the amount of such tax increase, together with a copy of the current
year’s tax bill. Landlord expects that said statement will be prepared on or before January 1st of each year. 
 Any such tax increase for the year
in which this Lease ends shall be apportioned and adjusted. With respect to any assessment which may be levied against or upon the demised premises and which, under the laws then in force, may be evidenced by improvement or other bonds, or may be
paid in annual installments. Tenant shall be required to pay each year only the amount of such annual installment or portion thereof constituting a tax increase (with appropriate pro-ration for any partial year) and shall have no obligation to
continue such payments after the termination of this Lease. 
 The term “Real Estate Taxes” as used herein shall be deemed to mean all taxes
imposed upon the buildings and permanent improvements on the premises, and all assessments levied against said building and improvements, but shall not include personal income taxes, personal property taxes, inheritance taxes or franchise taxes
levied against the Landlord but not directly against said property, even though such taxes shall become a lien against said property. 
 8. PERSONAL
PROPERTY TAXES. During the Lease term, Tenant shall pay before delinquent, any and all taxes, assessments, license fees and public charges levied, assessed or imposed upon Tenant’s fixtures, furnishings, equipment and other personal
property installed or located in the premises. Tenant shall cause said fixtures, furnishings, equipment and other personal property to be assessed and billed separately from the real property of Landlord. In the event any or all of the Tenant’s
fixtures, furnishings, equipment and other personal property shall be assessed and taxed with Landlord’s real property, then Tenant shall pay Landlord its share of such taxes within ten (10) days after delivery to Tenant by Landlord of a
statement in writing setting forth the amount of such taxes applicable to Tenant’s property. 
  

					
	 April 17, 1995
	  	-3-	  	

 9. PARKING AND COMMON FACILITIES. The automobile parking and common areas of the shopping center, so
designated in the attached Exhibit “A”, shall be available for the non-exclusive use, in common with Landlord, of Tenant, its agents, employees, customers, licensees, subtenants and concessionaires during the full term of this Lease or any
extension hereof, for ingress and egress, roadway, sidewalk and automobile parking. 
 During the term hereof, Tenant shall pay to Landlord on a monthly
basis Tenant’s prorated share of the total cost of maintaining and operating the common area and automobile parking area, including, without limiting the generality of the foregoing, all maintenance and construction work required to preserve
and maintain the utility of the common area and parking area in the same condition and status as when originally installed (including expenses of a capital nature where required for replacement purposes), reasonable supervision and management fees
incurred in the management of the common area and automobile parking area, not to exceed fifteen (15%) percent of the total expenses in any calendar year, all costs of policing, security protection and traffic direction, all costs of cleaning
and removing rubbish, dirt and debris, landscaping, maintenance and supplies incidental thereto, all premiums for fire, liability and property damage insurance carried by Landlord in connection therewith, all costs of utilities in connection
therewith including, but not limited to, all costs of maintaining and replacement of lighting facilities, light standards and storm drainage systems appurtenant thereto, and all taxes (real and personal), assessments and similar levies, general and
special, ordinary and extraordinary, of any name, nature and kind whatsoever which may be fixed, charged, levied, assessed or otherwise imposed upon said common area and automobile parking area. 
 Tenant’s proportionate share of the total expenses for the automobile parking area and common area for the previous calendar year shall be that portion of all such
expenses which are apportionable to the average number of square feet of floor space, as leased per annum, in those buildings described on Exhibit “A” hereto, exclusive of Ralphs and the Union Oil Station, with measurements to be from
outside or exterior walls and from the center of the interior separation partitions. There shall be appropriate adjustment of Tenant’s share of automobile and common area expenses as of the commencement and expiration of the term of this Lease.

 Within sixty (60) days after the conclusion of each calendar year, Landlord shall furnish Tenant with a statement, certified as correct by an
employee of Landlord, authorized to so certify, showing, for the calendar year just completed, the total operating costs and average leased square footage, of the common area, the amount of Tenant’s proportionate share of such operating costs
and the monthly payments made by Tenant as above set forth. The deficiency or excess shown on such statement with regard to Tenant’s obligation to contribute its proportionate share of the operating costs of the common area shall be adjusted in
accordance with, the above provisions. Landlord shall keep a separate account covering the operating costs of the common area and the statements to Tenant required herein shall accurately reflect such operating costs. Said account records of
Landlord shall be retained and preserved for a period of at least twelve (12) months after the expiration of each calendar year to which they apply. 
  

					
	 April 17, 1995
	  	-4-	  	

 Within ten (10) days after receipt of Landlord’s annual statement, Tenant shall pay Landlord the deficiency, if
any, shown on said annual statement, between Tenant’s proportionate share of the total operating costs of the year just completed and actual monthly payments made by Tenant to Landlord therefor. If said annual statement shows that Tenant’s
payment exceed Tenant’s proportionate share of said operating costs, Landlord shall refund such excess therewith, or at Landlord’s option credit such excess against monthly payments next thereafter to become due to Landlord from Tenant for
said common area and automobile parking area. 
 Landlord reserves the unqualified right to change the size, arrangement and location of the building areas
(except the premises), entrances, exits, roadways, parking spaces, driveways, aisles and other areas which make up the automobile parking and common areas. Tenant agrees to comply with such rules and regulations as Landlord may adopt from time to
time with respect to the common areas and automobile parking areas and the use thereof. 
 10. UTILITY SERVICES/UTILITY MAINTENANCE COSTS.

 It is understood and agreed that the phrase “utility services and utility maintenance costs” as used herein, shall mean all charges for water,
gas, heat, electricity, and all other utility services, as well as all expenses for maintenance and repairs and replacement of air conditioning equipment, heating equipment and lighting apportionable to the Smoke Tree Village Business and
Professional Building. 
 Tenant agrees to pay his proportionate share of all utility services and all utility maintenance costs apportionable to the
premises on a monthly basis. Tenant’s proportionate share of the total expenses for utility services and all utility maintenance costs for the previous calendar year shall be that portion of all such expenses which is equal to the proportion
thereof which the number of square feet of gross floor area in the premises bears to the total number of square feet of actual leased area in the Smoke Tree Village Business & Professional Center averaged per annum. There shall be
appropriate adjustment of Tenant’s share of said expenses as of the commencement and expiration of the term of the Lease. 
 Within sixty (60) days
after the conclusion of each calendar year, Landlord shall furnish Tenant with a statement, certified as correct by an employee of Landlord authorized to so certify, showing, for the calendar year just completed, the total expenses for utilities and
utility maintenance, the amount of Tenant’s proportionate share of said utilities and utility maintenance and the monthly payments made therefor by Tenant. The deficiency or excess shown on said statement with regard to Tenant’s obligation
to contribute its proportionate share of the expenses for utilities and utility maintenance shall be adjusted in accordance with Tenant’s proportionate share above set forth. Landlord shall keep a separate account covering the expenses for
utilities and utility maintenance, and the statements to Tenant required herein shall accurately reflect such expenses for utilities and utility maintenance. Said account records of Landlord shall be retained and preserved for a period of at least
twelve (12) months after the expiration of each calendar year to which they apply. Within ten (10) days after receipt of Landlord’s annual statement, Tenant shall pay to Landlord the deficiency, 

  

					
	 April 17, 1995
	  	-5-	  	

 
if any, shown on said statement, between Tenant’s proportionate share for expenses for utility maintenance, for the year just completed and the actual
monthly payments for utilities and utility maintenance made by Landlord. If said annual statement shows that Tenant’s monthly payments exceeded Tenant’s proportionate share of the expenses for utilities and utility maintenance, Landlord
shall refund such excess therewith, or at Landlord’s option, credit such excess against monthly payments next thereafter to become due to Landlord from Tenant. 
 11. MAINTENANCE AND REPAIRS. Landlord shall, at Landlord’s sole cost and expense, keep and maintain in good order and repair, the exterior foundations, exterior walls (except interior spaces),
exterior doors, downspouts, gutters, and the roof of the building of which the premises are a part, except Landlord shall not be responsible for any damage (as to all items) caused by any negligent act or omission of Tenant or its employees, agents,
guests, invitees, licensees or contractors. Landlord shall not be required to make any repairs to said items unless Tenant has notified Landlord in writing of the need for such repairs and Landlord shall have had a reasonable period of time
thereafter within which to commence and complete said repairs. Landlord agrees to use due diligence in the making of said repairs upon receipt of Tenant’s notice with regard thereof. Landlord shall also keep in good order, condition and repair,
the common hallways, walkways, rest rooms and other public areas in and adjacent to the Smoke Tree Village Shopping Center. 
 Except for the maintenance and
repairs Landlord is specifically required to make pursuant to article 11 hereof, Tenant shall, at Tenant’s own expense, keep and maintain in good repair the exterior and interior of the premises including, but not limited to, windows, ceilings,
floor covering, plumbing, electrical, and all other portions of the premises. Tenant shall also keep and maintain the premises in good and sanitary order and condition. Tenant hereby waives any rights for damages to its merchandise and other
personal property that Tenant may have as a result of Landlord’s failure to make repairs. 
 By entering into the premises, Tenant shall be deemed to
have accepted said premises as being in good and sanitary order, condition and repair, and Tenant agrees on the last day of said term or sooner termination of this Lease, to surrender the premises, with appurtenances, in the same condition as when
received, reasonable use and wear thereof excepted. 
 Tenant hereby waives to the extent permitted by law, all of the provisions of Section 1941 and
1942, et. seq., of the California Civil Code, and the provisions of any other law permitting repairs by a lessee at the expense of a lessor, and the provisions of any other law in contravention of the provisions of this article. 
 12. ALTERATIONS. Tenant shall not have the right to make any alterations, improvements or additions to the premises or any portion thereof, without the
prior written consent of Landlord, except those changes, additions and improvements, if any, which Tenant is required to make by the provisions of this Lease. All alterations, additions or improvements which are made in or to the premises shall be
surrendered with the premises upon the termination of this Lease (with the exception of movable furniture and 

  

					
	 April 17, 1995
	  	-6-	  	

 
trade fixtures), unless prior to such termination Landlord gives Tenant written notice to remove some or all thereof, in which case Tenant shall cause the
items so designated to be removed and the premises to be restored to its original condition, all at the expense of Tenant. If during the term of this Lease, any additions, alterations or improvements in or to the premises, as distinguished from
repairs, are required by any governmental authority or any law, ordinance or government regulation because of the use to which the premises are put by Tenant and not by reason of the character or structure of the building, they shall be made and
paid for by Tenant. 
 Tenant agrees to pay promptly for all labor done or materials furnished for any work of repair, maintenance, improvement, alteration
or addition done by Tenant, in connection with the premises, and to keep and hold said premises free, clear and harmless of and from all liens that could arise by reason of any such work. If any such lien shall at any time be filed against the
premises, or the building of which the premises are a part, Tenant shall either cause the same to be discharged of record within twenty (20) days after filing the same, or if Tenant in its discretion and in good faith determines that such lien
should be contested, Tenant shall provide a release bond as provided in the California Civil Code, Section 3143. If Tenant shall fail to discharge such lien within such period or shall fail to furnish such security, then, in addition to any
other right or remedy, Landlord may, but shall not be obligated to, discharge the same either by paying the amount claimed to be due or by giving security or in such other manner as is, or may be, prescribed by law. Tenant shall repay the Landlord
on demand all sums disbursed or deposited by Landlord pursuant to the foregoing provisions including Landlord’s costs, expenses and reasonable attorney’s fees incurred by Landlord in connection therewith. Nothing contained herein shall
imply any consent or agreement on the part of Landlord to subject Landlord’s interest in the real property, of which the premises are a part, to liability under any mechanic’s or other lien law. 
 Tenant shall give notice to Landlord at least ten (10) days prior to commencement of any construction irrespective of whether consent is required by Landlord, as
hereinabove provided, and Landlord shall have the right to enter upon the premises and post such notices as may be deemed necessary by Landlord, including but not limited to notices of non-responsibility in the manner and form provided in the Civil
Code of the State of California. 
 13. HOLD HARMLESS/LIABILITY INSURANCE BY TENANT. Tenant, as a material part of the consideration to be
rendered to Landlord under this Lease, hereby waives all claims against Landlord for damage to goods, wares and merchandise in, upon or about the premises and for injuries to persons in or about said premises, from any cause arising at any time; and
Tenant will hold Landlord exempt and harmless from any damage or injury to any person, arising from the use of the premises by Tenant, or from the failure of Tenant to keep the premises in good condition and repair, as herein provided. 

During the term of this Lease and any extensions hereof, the Tenant shall, at Tenant’s sole cost and expense, but for the mutual benefit of Landlord and Tenant,
maintain general public liability insurance against claims for personal injury, death or property damage occurring in, upon or about the premises, and on any sidewalks directly adjacent to the premises. The limits of liability of such insurance
shall not be less than FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) for injury (or death) to any one 

  

					
	 April 17, 1995
	  	-7-	  	

 
(1) person, and ONE MILLION DOLLARS ($1,000,000.00) for any injury (or death) to more than one (1) person arising out of the same accident, and
FIFTY THOUSAND DOLLARS ($50,000.00) with respect to damage to property, 
 Tenant agrees that ail insurance coverage which Tenant is required to obtain
pursuant to the terms of this Lease shall be obtained with coverage under which Landlord shall be named as a co-insured and Tenant shall provide at all times during the term of this Lease, written evidence to Landlord that such insurance has been
obtained and is in full force and effect, and if at any time during the term of this Lease, Tenant shall fail to obtain any insurance required by the terms of this Lease, Landlord shall be entitled to obtain such coverage from an insurance company
of Landlord’s choosing and Tenant shall agree within five (5) days after demand, to reimburse Landlord for any premium payments and costs incurred by Landlord in obtaining such insurance. 
 14. LANDLORD’S ACCESS. Landlord and its designees shall have the right to enter the premises during reasonable business hours (and in emergencies at
all times): (i) to inspect the same (ii) for any purpose connected with Landlord’s rights or obligations under this Lease, (iii) for all other lawful purposes, and (iv) during the last three
(3) months of the term of this Lease to show the premises at reasonable times to prospective Tenants. 
 15. ASSIGNMENT AND SUBLETTING.
Tenant may not assign or hypothecate this Lease or any part or interest herein and shall not sublet the premises or any part thereof, or any right or privilege appurtenant thereto, without having first obtained the written consent of Landlord, which
consent Landlord agrees not to unreasonably withhold. Any assignment, subletting or hypothecation without having first obtained the consent of Landlord shall be void and of no force and effect and shall, at the option of Landlord, constitute a
breach of this Lease. 
 Acceptance or receipt of rental payment or any other payment to be made pursuant to the terms of this Lease by Landlord from any
person other than Tenant shall not be construed as an acceptance of that party by Landlord as a Tenant under the terms of this Lease and any acceptance of such payment by Landlord shall not be deemed a waiver of the provisions of this paragraph.

 Landlord shall not be prohibited from conveying its interest in the shopping center subject to this Lease or assigning its interest in this Lease at any
time to whomsoever it elects. If, during the term of this Lease, Landlord shall sell its interest in the shopping center or the premises, then from and after the effective date of such sale, Landlord shall be released and discharged from any and all
obligations and responsibilities under this Lease, except those already accrued. 
 All terms, conditions, agreements and covenants of this Lease shall be
binding upon Landlord and Tenant and their respective successors and assigns. 
 16. SIGNS. Tenant agrees that it will not at any time during
the Lease term and any extensions hereof, without first obtaining the Landlord’s written consent and a permit from the City of Palm Springs, California, place on the exterior walls (including both 

  

					
	 April 17, 1995
	  	-8-	  	

 
interior and exterior surfaces of windows and doors), the roof of the premises or any other part of the shopping center, any sign, symbol, advertisement,
neon light, other light or object or thing visible to the public view outside of the premises. All signs must comply with all City ordinances and be in conformity with the design specified by Smoke Tree Village. 
 17. ABANDONMENT. Tenant shall not vacate or abandon the premises at any time during the term of this Lease or any extension hereof. If Tenant shall abandon
or vacate or surrender the premises or be dispossessed by process of law, or otherwise, any personal property belonging to Tenant and left on the premises shall be deemed abandoned, at the option of Landlord, except such property as may be mortgaged
to Landlord. 
 18. REMOVAL OF FIXTURES. Upon the expiration of the term of this Lease and any extensions hereof, if Tenant be not then
in default hereunder, Tenant will be permitted to remove all trade fixtures, furniture and equipment (with the exception of floor covering) originally placed in the premises by Tenant that can be removed without damage or injury to the premises or
the shopping center of which the premises is a part. If any damage or injury should occur to the premises or the shopping center in connection with any such removal, then Tenant agrees to promptly repair and/or replace any damage or destruction, or
at the option of Landlord, to reimburse the Landlord on demand for all of its costs and expenses in repairing and/or restoring any such damage or destruction. After removal of said fixtures, Tenant shall restore the premises to their original
condition, reasonable wear and tear excepted. 
 Should Tenant fail to remove any of its trade fixtures, furniture or equipment within fifteen
(15) days after the termination of this Lease, said property shall be conclusively presumed to have been abandoned and by this provision quitclaimed to Landlord by Tenant, and without liability, Landlord may dispose of the same. 
 19. DAMAGE AND DESTRUCTION OF PREMISES. In the event of (i) partial destruction of the premises or the building containing the same during the
term of this Lease or any extensions hereof, which requires repairs to either the premises or said building; or (ii) the premises or any building being condemned by a public authority having jurisdiction over the property for any reason
other than Tenant’s act, use or occupation, which declaration requires repairs to either the premises or said building, Landlord shall forthwith make said repairs, provided Tenant gives to Landlord thirty (30) days written notice of the
necessity therefor. No such partial destruction (including any destruction necessary in order to make repairs required by any declaration made by any public authority) shall in any way annul or void this Lease, except that Tenant shall be entitled
to a proportionate reduction of rental while such repairs are being made, such proportionate reduction to be based upon the extent to which the making of such repairs shall interfere with the business carried on by Tenant in the premises.

 In the event the premises are damaged to such an extent as to render the same untenantable in whole or in a substantial part thereof, or are destroyed,
Landlord may either cancel this Lease or repair or rebuild the premises. If Landlord elects to repair or rebuild the premises, Landlord shall use all insurance proceeds available for such purposes and shall have not more than thirty (30) days
from such happening to notify the Tenant in writing of Landlord’s intentions to repair or rebuild said premises. Landlord shall be required 
  

					
	 April 17, 1995
	  	-9-	  	

 
to repair only those improvements originally made by Landlord at Landlord’s expense and Tenant shall make any and all repairs as to improvements
installed or paid for by Tenant, at Tenant’s expense. If Landlord elects to make said repairs, this Lease shall continue in full force and effect and the rental shall be proportionately reduced as hereinabove provided. If Landlord elects to
terminate this Lease, all rentals shall be prorated between Landlord and Tenant as of the date of such destruction. 
 In respect to any partial destruction
which Landlord is obligated to repair or may elect to repair under the terms of this Article 19, the provisions of Section 1932, Subdivision (2) and Section 1933, Subdivision (4) of the California Civil Code are hereby waived by
Tenant. 
 20. CONDEMNATION. 
 (a) “Condemnation” Defined. The word “condemnation” or “condemned” as used in this paragraph or elsewhere in this Lease, shall mean the exercise of, or intent to exercise, the power of eminent
domain, expressed in writing as well as the filing of any action or proceeding for such purpose, by any person, entity, body, agency, or authority having the right or power of eminent domain, and shall include a voluntary sale by Landlord to any
such person, entity, body, agency or authority, either under threat of condemnation or while condemnation proceedings are pending, and shall occur in point of time upon the actual physical taking of possession pursuant to the exercise of said power
of eminent domain. 
 (b) Allocation of Award. In the event the premises, or any part thereof, are condemned, Landlord shall be
entitled to and shall receive the total amount of any award made with respect thereto, regardless of whether the award is based on a single award or a separate award as between the respective parties and, if and to the extent that any such award or
awards shall be made to Tenant or to any person claiming through, or under Tenant, Tenant hereby irrevocably assigns to Landlord all of his right, title and interest in and to any and all such awards. No portion of any such award or awards shall be
allowed to or paid to Tenant for any so-called bonus or excess value of this Lease by reason of the relationship between the rental payable under this Lease and what may at the time be a fair rental for the premises. The foregoing not withstanding,
Landlord shall turn over to Tenant that portion of any such award received by Landlord hereunder which is attributable to Tenant’s fixtures and equipment which are condemned as part of the real property but which Tenant would otherwise be
entitled to remove, and the appraisal of the condemning authority with respect to the amount of any such award allocable to such items shall be conclusive. 
 (c) Landlord’s Right to Settle. Landlord may, without any obligation or liability to Tenant and without affecting the validity and existence of this Lease other than is hereafter expressly provided,
agree to sell and/or convey to the condemner, without first requiring that any action or proceeding be instituted, or, if such action or proceeding shall have been instituted, without requiring any trial or hearing thereof (and Landlord is expressly
empowered to stipulate to judgment therein), the premises or portion thereof sought by the condemner free from this Lease and the rights of Tenant hereunder (except only as those rights given Tenant in Subparagraph (b) above). 
  

					
	 April 17, 1995
	  	-10-	  	

 (d) Effect of Condemnation. If any part or all of the premises shall be condemned, this
Lease shall terminate without further notice, and this Lease and all rights and duties of Landlord and Tenant hereunder shall cease and terminate at the time of such condemnation, as heretofore defined. If this Lease is terminated as provided in
this Article, the rent shall be paid up to the date of condemnation (as such date is determined above) and Landlord shall make an equitable refund of rental paid by Tenant in advance and not yet earned. 
 21. DEFAULT AND REMEDIES. 
 (a)
Default Defined. If Tenant shall fail to pay any sums payable by Tenant as hereinbefore provided, and such failure shall continue for a period of five (5) days after written notice thereof to Tenant by Landlord, or if Tenant shall fail
to promptly perform or observe any other covenant, condition or agreement by it to be performed hereunder, other than the payment of rent, and such failure shall continue for a period of fifteen (15) days, after written notice from Landlord to
Tenant specifying the nature of such failure, or if Tenant vacates or abandons the premises, or breaches any obligation under this Lease by it to be performed, which cannot be cured, or if a petition to have Tenant adjudicated a bankrupt, or a
petition for reorganization or arrangement under any laws of the United States relating to bankruptcy be filed against Tenant and not be dismissed within sixty (60) days from the date of such filing, or if the assets of Tenant or the business
conducted by Tenant on the premises be assumed by any trustee, receiver or other person pursuant to any judicial proceeding, or if Tenant becomes insolvent or makes an assignment for the benefit of creditors, then, in any such event, Tenant shall be
deemed to be in default hereunder. 
 (b) Remedies. In the event of a default by Tenant, Landlord, without
further notice to Tenant, shall have any one or more of the following remedies, at Landlord’s election: 
 (1) Without barring
later election of any other remedy, and without taking possession of the premises, Landlord may require strict performance of all the covenants and obligations hereof as the same shall accrue, and have the right of action therefor; 
 (2) Without barring later election of any other remedy, Landlord may re-enter the premises with or without process of law, eject all parties in
possession thereof therefrom, and, without terminating this Lease, at any time and from time to time, relet the premises or any part or parts’ thereof for the account of Tenant or otherwise, and receive and collect the rents therefor, applying
the same first to the payment of such expenses, including attorney’s fees, as Landlord my have paid, assumed, or incurred in recovering possession of the premises and placing the same in good order and condition and/or preparing or altering the
same for reletting and such additional expenses, including commissions, paid, assumed or incurred by Landlord in, or in connection with, reletting the premises, and then to the fulfillment of the covenants of Tenant. Any such reletting as provided
for herein may be for the remainder of the term of this Lease, or for a longer or shorter period. Landlord may execute any Lease made pursuant to the terms hereof either in Landlord’s own name or in the name of Tenant, as Landlord may see fit,
and the subtenant therein shall be under no obligation whatsoever for the application by Landlord of any rent collected by Landlord from such subtenant to any and all sums due and owing 

  

					
	 April 17, 1995
	  	-11-	  	

 
under the provisions of this Lease, nor shall Tenant have any right or authority whatever to collect any rent whatever from such subtenant or any subtenant,
licensee, or concessionaire on the premises. In any case, and whether or not the premises or any part thereof be relet, Tenant shall pay to Landlord all sums required to be paid by Tenant up to the time of such re-entry by Landlord, and thereafter,
Tenant shall pay to Landlord monthly, or at the several due days specified herein if other than monthly, until the end of the term of this Lease, the equivalent of all sums specified as rental herein and any and all other sums required to be paid by
Tenant under the terms of this Lease, less the avails of such reletting, if any, after payment of the expenses of Landlord as aforesaid, and Landlord need not wait until the termination of this Lease to recover the same by legal action or otherwise.
No such reentry by Landlord shall constitute an election to terminate this Lease, unless Landlord gives Tenant written notice of Landlord’s election to terminate; 
 (3) Without barring later election of any other remedy, terminate this Lease or the Leasehold interest created by it and re-enter the premises, either with or without process of law, and remove all persons
therefrom and repossess and enjoy the premises, together with all additions, alterations and improvements thereto. Upon such termination, Landlord may recover from Tenant all damage he may incur by reason of said breach, including:
(i) the worth at the time of the award of the unpaid rent which had been earned at the time of termination; (ii) the worth at the time of the award of the amount by which the unpaid rent would have been earned after
termination until the time of the award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; (iii) the worth at the time of the award of the amount by which the unpaid rent for the balance of the
term after the time of the award exceeds the amount of such rental loss for such period that Tenant proves could have been reasonably avoided; (iv) any other amount necessary to compensate Landlord for all detriment proximately caused by
Tenant’s failure to perform all of Tenant’s obligations under this Lease or which in the ordinary course of things would be likely to result therefrom. The “worth at the time of the award” of the amounts referred to in Items
(i) and (ii) of this paragraph is computed by allowing interest at the rate of Ten (10)% Percent per annum. The “worth at the time of the award” of the amounts referred to in Item (iii) of this paragraph, is computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus One (1)% Percent. Landlord may relet this property prior to the time of the award for breach of this Lease by Tenant.

 (4) Efforts by Landlord to mitigate the damage caused by Tenant’s breach of this Lease, do not waive Landlord’s right to
recover damages under this paragraph, and nothing herein contained shall effect the right of Landlord to indemnification for personal injuries or property damage as otherwise provided in this Lease. 
 (5) Anything to the contrary notwithstanding, as an additional option, without barring later election of any other remedy, even though Tenant has
breached this Lease and abandoned the premises, this Lease shall continue in effect for so long as Landlord does not terminate Tenant’s right to possession; Landlord may enforce all his rights and remedies under this Lease, including the right
to recover rent as it becomes due under this Lease. This remedy being granted pursuant to the provisions of Section 1951.4 of the Civil Code of the State of California. For the purposes of this section, the following acts do not constitute a
termination of Tenant’s right to possession: (i) acts of maintenance or preservation or efforts to relet the premises; (ii) the appointment of a receiver on initiative of Landlord to protect his interest under this
Lease. 
  

					
	 April 17, 1995
	  	-12-	  	

 (6) The provisions of Subsections (3), (4) and (5) of this Article, shall be an option
of Landlord so long as the provisions of Paragraph 15 of this Lease remain in full force and effect, which provide that Landlord shall not unreasonably withhold consent to Tenant subleasing or assigning Tenant’s interest in this Lease.

 22. INTEREST ON PAST DUE OBLIGATIONS. Any sum of money accruing to Landlord under the terms and provisions of this Lease, which shall not be
paid when due, shall bear interest at the rate of Ten (10%) Percent, per installment, or the maximum interest permitted to be charged under law, if more than Ten (10%) Percent, for any installment of rent or any sum due from Tenant not
received by Landlord or Landlord’s designee within seven (7) days of when due. 
 23. ATTORNEY’S FEES. Should either party
institute legal proceedings against the other arising out of this Lease, the prevailing party shall be entitled to reasonable attorney’s fees, to be fixed by the Court having jurisdiction in any such action. 
 Should Landlord, without fault on Landlord’s part, be made a party to any litigation instituted by or against Tenant, or by or against any person holding under or
using the premises by license of Tenant, or otherwise arising out of or resulting from any act or transaction of Tenant or any such person, Tenant covenants to pay to Landlord the amount of any judgment rendered against Landlord or the premises or
any part thereof and all costs and expenses, including reasonable attorney’s fees, incurred by Landlord in or in connection with such litigation. 
 24. NOTICE. Any notice required or given to either party hereunder shall be given in writing and shall be deemed to have been given when deposited as certified or registered mail, addressed to the parties at their respective
addresses recited in this Lease, or to such other respective addresses as to which either party may hereafter from time to time give notice in writing by personal delivery or by certified or registered mail to the other. 
 25. WAIVER. One or more waivers by Landlord of any condition or covenant of this Lease, shall not be construed as a waiver of a subsequent breach of the
same or any other condition or covenant. Landlord’s consent or approval shall not be deemed to waive or render unnecessary Landlord’s consent to, or approval of, any subsequent similar act by Tenant. 
 26. HOLDOVER BY TENANT. In the event that Tenant shall hold the premises after the expiration of the term hereof, with the consent of Landlord, express or
implied, such holding over shall, in the absence of written agreement on the subject, be deemed to have created a tenancy from month to month, terminable on thirty (30) days written notice by either party to the other at a monthly rental
payable in advance at the same monthly rental as provided for in this Lease, and otherwise subject to all of the terms and provisions of this Lease. If Tenant fails to surrender the premises upon the termination of this Lease, Tenant shall indemnify
and hold Landlord harmless from loss or liability resulting from such failure to surrender, including, without limiting the generality of the foregoing, any claims made by any succeeding Tenant founded on or resulting from such failure to surrender.

  

					
	 April 17, 1995
	  	-13-	  	

 27. MATTERS OF RECORD. This Lease is subject to and subordinate to, each and all of the terms and
conditions of that certain “MASTER LEASE” entered into under the date of April 8, 1964, by and between Smoke Tree, Inc., a California corporation, as “Lessor”, and Alan C. Stoneman, an individual, as “Lessee”. J.
W. Wood Trust is the present successor in interest to all of the original lessee’s right, title and interest under said “MASTER LEASE” and is the Landlord herein, and bases its’ right to possession of the herein property upon
said “MASTER LEASE”. 
 This Lease is subject to, and subordinate to all, existing matters of record, including, but not limited to the Grant of
Easements and Declaration of Restrictions executed by Smoke Tree Village Limited, a Limited Partnership, and Smoke Tree, Inc., a California Corporation, recorded May 15, 1969, as Instrument No. 48075, in the records of the office of the
County Recorder of Riverside County, California. Tenant agrees to abide and not to violate any provisions of said document. 
 28. RIGHTS OF
LENDERS. Notwithstanding anything to the contrary in this Lease, Landlord shall not be in default under any provision of this Lease, unless written notice, specifying such default, is mailed to Landlord and to all mortgagees and/or trust
deed holders. Tenant agrees that any such mortgagee or trust deed holder shall have the right to cure such default on behalf of Landlord within thirty (30) days after receipt of such notice. Tenant further agrees not to invoke any of its
remedies under this Lease, until said thirty (30) days have elapsed, or during any period that such mortgagee or trust deed holder is proceeding to cure such default with due diligence, or is taking steps with due diligence to obtain the legal
right to enter the shopping center and cure such default. 
 29. SUBORDINATION. Landlord reserves the right to place liens and encumbrances on
the premises superior in lien and effect to this Lease. This Lease, at the option of Landlord, shall be subject and subordinate to any liens and encumbrances now or hereafter imposed by Landlord upon the premises or any building of which the
premises is a part, and Tenant agrees to execute and deliver upon demand such instruments subordinating this Lease to any such liens or encumbrances as shall be requested by Landlord. 
 30. ESTOPPEL STATEMENT. At any time and from time to time, Tenant agrees upon request in writing from Landlord to execute, acknowledge and deliver to Landlord a statement in writing certifying that this
Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect, as modified, and stating the modifications) and the dates to which fixed minimum rent, percentage rent, if any, and
other charges have been paid. It is understood and agreed that any such statement may be relied upon by any prospective purchaser of the Leasehold or the mortgage, beneficiary or grantees of any security or interest, or any assignee of any thereof,
under any mortgage or deed of trust now or hereafter made covering the Leasehold interest in the premises or any portion of the Leasehold estate of which the premises form a part. 
  

					
	 April 17, 1995
	  	-14-	  	

 31. GENERAL PROVISIONS. (a) If any term, condition, covenant or provision of this Lease is held
by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect, and shall in no way be affected, impaired or invalidated thereby, (b) The paragraph
titles herein used are for convenience only and do not define, limit or construe the contents of such paragraphs, (c) The words “Landlord” and “Tenant” wherever used herein shall be applicable to one or more persons
as the case may be, and the singular shall include the plural, and the neuter shall include the masculine and feminine, and if there be more than one, the obligations thereof shall be joint and several, (d) Landlord and Tenant agree that from
time to time Landlord will adopt and impose reasonable rules and regulations concerning the general use, operation and activities to be conducted in connection with the Smoke Tree Village, and Tenant agrees to comply with all of the terms and
conditions of such reasonable rules and regulations and comply therewith upon receiving reasonable notice of such rules and regulations, (e) It is understood and agreed that all of the provisions of this Lease are to be construed as
covenants and agreements, as though the words importing such covenants and agreements were used in each separate provision hereof. It is further agreed that all of Tenant’s covenants and agreements herein contained are conditions, and that the
time of the performance of each shall be a condition precedent to the right of Tenant to remain in possession of the premises or to have this Lease continue in force and effect, (f) It is hereby expressly agreed that this Lease contains
all of the terms, conditions, covenants and agreements between the parties hereto relating in any manner to the rental and use and occupancy of the premises, and that no prior agreement or understanding pertaining to the same shall be valid or of
any force or effect, and that the terms, covenants, conditions and provisions of this Lease cannot be altered, changed, modified or amended, except in writing signed by the parties hereto. Tenant is responsible for professional carpet cleaning
upon vacating the demised premises. 
 32. SUMMARY OF MONTHLY CHARGES AND SECURITY DEPOSIT. 
 (a) Monthly payments beginning September 1, 2001: 
  

							
	 Rent
	  	$	1,370.00 	*	 	
	 Cam/Ins./Taxes
	  	 	499.00 	**	 	
	 Utilities
	  	 	498.00 	**	 	subject to surcharge for rate increase
	 CAM/Util Mgmnt
	  	 	123.00	 	 	
	 Total
	  	$	2,490.00	 	 	(b) Security deposit: $2,490.00

	*	Subject to annual CPI increases starting June 1, 2002. 

	**	Subject to annual adjustments starting June 1, 2002. 

 IN
WITNESS WHEREOF, the parties have duly executed this Lease, together with the herein referred to Exhibits, which are attached hereto, the day and year first above written. 
  

					
	LANDLORD:	 		 	TENANT:
			
	 /s/ LAWRENCE J. OLSON
	 		 	 /s/ STEPHEN G. HOFFMANN

	J. W. WOOD TRUST	 		 	STEPHEN G. HOFFMANN
	LAWRENCE J. OLSON, TRUSTEE	 		 	
	 1729 E. Palm Canyon Dr. Ste 117
 Palm Springs, CA
92264
	 		 	Palm Springs, CA 92264
	Date: 5/29/01	 		 	Date: 5/21/01

  

					
	 April 17, 1995
	  	-15-	  	

 EXHIBIT A 
  

			
	

	 	SMOKE TREE VILLAGE SHOPPING CENTER
	 	RETAIL AREA AND OFFICE BUILDING
	 	COMMON AREAS

 

 

 

 
 EXHIBIT “C” 

 AMENDMENT TO LEASE 
 This “Amendment to Lease”, dated July 1, 2003, between Landlord, J. W. Wood Trust dba Smoke Tree Village Shopping Center and Tenant, Canyon National Bank, shall amend the original Lease between Landlord
and Tenant dated May 21, 2001. The original Lease shall be amended beginning on August 1, 2003 as follows: 
  

	 	(1)	The 1664 square feet premises, suites 200-206, shall be enlarged by approximately 340 square feet with the addition of minisuites G and H, and shall comprise a total of
approximately 2004 square feet. 

  

	 	(2)	An additional five hundred and fifty dollars ($550.00) will be required to bring your security deposit up to the new required amount 

  

	 	(3)	The monthly rental and reimbursement rates beginning August 1, 2003 shall be: 

  

				
	 Minimum (base) rent
	  	$	1,701.00
	 CAM/Util./Ins./Taxes
	  	 	1,237.00
	 CAM/Util. Mgmt
	  	 	125.00
	 Total
	  	$	3,063.00

  

	 	(4)	Landlord shall be responsible for repainting the premises, altering certain walls and providing new carpeting prior to move-in. Tenant’s moving into the new premises shall
constitute Tenant’s acceptance of Landlord’s work and no further work by Landlord shall then be necessary henceforth. 

  

	 	(5)	All other provisions, terms and conditions contained in the original Lease shall remain the same. 

  

							
	Agreed:	 	 /s/ Lawrence J. Olson
	 	Agreed:	 	 /s/ Stephen Hoffmann

		 	Lawrence J. Olson	 		 	Stephen Hoffmann, President
		 	Trustee, J. W. Wood Trust	 		 	Canyon National Bank
		 	Landlord	 		 	Tenant
		 	Date: 7/7/03	 		 	Date: 7/1/03

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