Document:

Kilroy Centre Del Mar Office Lease

 EXHIBIT 10.3 
  
 Confidential Materials omitted and filed separately with the Securities and Exchange Commission. Asterisks denote such
omissions. 
  
 KILROY CENTRE DEL MAR 
  
 OFFICE LEASE 
  
 This Office Lease (the “Lease”), dated as of the date set
forth in Section 1 of the Summary of Basic Lease Information (the “Summary”), below, is made by and between KILROY REALTY, L.P., a Delaware limited partnership (“Landlord”), and MEMEC, LLC, a Delaware limited
liability company (“Tenant”). 
  
 SUMMARY OF
BASIC LEASE INFORMATION 
  

					
	 TERMS OF LEASE

	  	 DESCRIPTION

	 1.
	  	 Date:
	  	September 23, 2002.
			
	 2.
	  	 Premises:
	  	 
			
	 	  	 2.1 Building:
	  	That certain five (5)-story building (the “Building”) located at 3721 Valley Centre Drive, San Diego, California 92130, which Building contains 114,782 rentable (108,532 usable)
square feet of space, and which Building is commonly referred to as “Building 4”.
			
	 	  	 2.2 Initial Premises*:
	  	Approximately 91,765 rentable (86,768 usable) square feet of space comprising all of the first (1st), third (3rd), fourth (4th) and fifth (5th)
floors of the Building, commonly known as Suites 100, 300, 400 and 500, respectively, as further set forth in Exhibit A to the Office Lease.
			
	 	  	 2.3 Additional Premises*:
	  	Approximately 23,017 rentable (21,764 usable) square feet of space comprising all of the second (2nd) floor of the Building, commonly known as Suite 200, as further set forth in Exhibit A to the Office Lease.
	
	
 *       Prior to the Additional Premises Commencement Date, references to the “Premises” shall be deemed to refer to the Initial Premises, and on and after the Additional Premises Commencement
Date, references to the “Premises” shall be deemed to refer to the Initial Premises and the Additional Premises.

			
	 	  	 2.4 Project:
	  	The Building is part of an office project known as “Kilroy Centre Del Mar,” as further set forth in Section 1.1.2 of this Lease.
			
	 3.
	  	 Lease Term
 (Article 2):
	  	 
			
	 	  	 3.1 Length of Term:
	  	 Ten (10) years and no (0) months.

			
	 	  	 3.2 Lease Commencement Date:
	  	The earlier to occur of (i) the date upon which Tenant first commences to conduct business in the Premises, and

					
	 	  	 	  	(ii) three (3) business days following Tenant’s receipt of written notice that the Premises are “Ready for Occupancy,” as that term is set forth in Section 5.1 of the
Tenant Work Letter attached hereto as Exhibit B, which Lease Commencement Date is anticipated to be March 1, 2003.
			
	 	  	 3.3 Lease Expiration Date:
	  	The date immediately preceding the 10th anniversary of the
Lease Commencement Date.
			
	 	  	 3.4 Option Term(s):
	  	Two (2) five (5)-year options to renew, as more particularly set forth in Section 2.2 of this Lease.
			
	 4.
	  	 Base Rent
 (Article 3):
	  	 

  

													
	 Lease Year(s)

	    	Annual Base Rent

	 	 	 Monthly Installment
 of Base Rent

	 	 	 Monthly Rental Rate per
 Rentable Square Foot

	 
	 1-2*
	    	$	*	**	 	$	*	**	 	$	*	**
	 3-4**
	    	$	*	**	 	$	*	**	 	$	*	**
	 5-6
	    	$	*	**	 	$	*	**	 	$	*	**
	 7-8
	    	$	*	**	 	$	*	**	 	$	*	**
	 9-10
	    	$	*	**	 	$	*	**	 	$	*	**

  

					
	
 *       The foregoing Schedule of Base Rent was calculated based upon the assumption that the Additional Premises Commencement Date occurs on the second (2nd) anniversary of the Commencement Date. Therefore, to the extent the Additional Premises Commencement Date occurs on a date other than the second
(2nd) anniversary of the Commencement Date, the Schedule of Base Rent shall be recalculated such that the Monthly
Installment of Base Rent and the Annual Base Rent are calculated based upon (i) the 91,765 rentable square feet of the Initial Premises prior to the Additional Premises Commencement Date and (ii) the 114,782 rentable square feet of the entire
Premises on and after such Additional Premises Commencement Date.

	
	 **     Annual Base Rent (and Monthly Installment of Base Rent) was calculated using *** percent (***)
increases on each of second (2nd), fourth (4th), sixth (6th) and eighth
(8th) anniversaries of the Lease Commencement Date; provided, however, that in each instance, the resulting Monthly
Installment of Base Rent was rounded up or down, as applicable, to the nearest twenty-five cents ($0.25), and the Annual Base Rent is, therefore, an amount equal to twelve (12) times such rounded Monthly Installment of Base Rent
amount.

			
	 5.
	  	 Base Year
 (Article 4):
	  	Calendar year 2003; provided, however, all metered utilities shall be paid directly by Tenant, having been excluded from “Operating Expenses,” as that term is set forth in Section
4.2.4 of the Lease.
			
	 6.
	  	 Tenant’s Share
 (Article 4):
	  	 Prior to the Additional Premises Commencement Date: 79.95%.
  

On and after the Additional Premises Commencement Date: 100%.

  

	***	Material has been omitted pursuant to a request for confidential treatment. 

  

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	 7.
	  	 Permitted Use
 (Article 5):
	  	Provided any such use is legally permissible, Tenant shall use the Premises solely for general office and any other legally permitted use pursuant to the “specialized commercial”
zoning (commonly known as SC zoning) applicable to the Building.
			
	 8.
	  	 Security Deposit
 (Article 21):
	  	$351,075.75. In addition to the Security Deposit, Tenant shall have additional security obligations pursuant to the terms and conditions set forth in Section 21.2.
			
	 9.
	  	 Parking Space Ratio
 (Article 28):
	  	Four (4) unreserved parking spaces for every 1,000 usable square feet of the Premises, of which fifteen (15) spaces adjacent to the Building entrance shall be designated as “Memec Visitor
Reserved”.
			
	 10.
	  	 Address of Tenant
 (Section 29.18):
	  	 Memec, LLC
 Director of Facilities and
Purchasing
 9980 Huennekens Street
 San Diego, California
92121
 (Prior to Lease Commencement Date)
  
 with a copy to:
  
 Memec, LLC
 Legal Department
 9980 Huennekens Street
 San Diego, California 92121
 (Prior to Lease Commencement Date)
  
 and
  
 Memec, LLC
 Director of Facilities and Purchasing
 3721 Valley Centre Drive,
 San Diego, California 92130
 (After Lease Commencement Date)
  
 with a copy to:
  
 Memec, LLC
 Legal Department
 3721 Valley Centre Drive,
 San Diego, California 92130
 (After Lease Commencement Date)

			
	 11.
	  	 Address of Landlord
 (Section 29.18):
	  	 See Section 29.18 of the Lease.

  

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	 12.
	  	 Broker(s)
 (Section 29.24):
	  	 Colliers International
 4660 La Jolla Village Drive,
Suite 200
 San Diego, California 92122
 Attention: Brian D.
Driscoll
                  Senior Vice President

			
	 13.
	  	 Tenant Improvement Allowance
 (Section 2 of Exhibit B):
	  	$4,820,844.00 (which amount was calculated based upon $42.00 per Rentable Square Foot for each of the 114,782 Rentable Square Feet of space in the Premises).
			
	 14.
	  	 Guarantor
 (Exhibit G):
	  	Memec Group Holdings Limited, a company incorporated and registered in England and Wales.

  

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 ARTICLE 1 
  
 PREMISES, BUILDING, PROJECT, AND COMMON AREAS 
  
 1.1 Premises, Building, Project and Common Areas. 
  
 1.1.1 The Premises. Landlord hereby leases to Tenant and
Tenant hereby leases from Landlord the premises set forth in Sections 2.2 and 2.3 of the Summary, which is comprised of the initial premises (the “Initial Premises”) and the additional premises (the “Additional
Premises”), as set forth in Section 2.2 and 2.3 of the Summary (collectively, the “Premises”). The outline of the Premises is set forth in Exhibit A attached hereto and each floor or floors of
the Premises has the number of rentable square feet as set forth in Section 2.2 of the Summary. The parties hereto agree that the lease of the Premises is upon and subject to the terms, covenants and conditions (the “TCCs”)
herein set forth, and Tenant covenants as a material part of the consideration for this Lease to keep and perform each and all of such TCCs by it to be kept and performed and that this Lease is made upon the condition of such performance. The
parties hereto hereby acknowledge that the purpose of Exhibit A is to show the approximate location of the Premises in the “Building,” as that term is defined in Section 1.1.2, below, only, and such Exhibit is
not meant to constitute an agreement, representation or warranty as to the construction of the Premises, the precise area thereof or the specific location of the “Common Areas,” as that term is defined in Section 1.1.3,
below, or the elements thereof or of the accessways to the Premises or the “Project,” as that term is defined in Section 1.1.2, below. Except as specifically set forth in this Lease and in the Tenant Work Letter attached
hereto as Exhibit B (the “Tenant Work Letter”), Landlord shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Premises (including both the Initial Premises and
the Additional Premises). Landlord covenants that Landlord’s construction of the Building, pursuant to Section 1.1 of the Tenant Work Letter and Article 24 of this Lease, complies with applicable laws to the extent necessary for
Tenant to obtain and maintain a certificate or occupancy (or temporary certificate of occupancy) for the Premises, and is acceptable for a general office use. Tenant also acknowledges that neither Landlord nor any agent of Landlord has made any
representation or warranty regarding the condition of the Premises, the Building or the Project or with respect to the suitability of any of the foregoing for the conduct of Tenant’s business, except as specifically set forth in this Lease and
the Tenant Work Letter. The taking of possession of the Premises (both the Initial Premises and the Additional Premises, respectively) by Tenant shall conclusively establish that the Premises and the Building were at such time in good and sanitary
order, condition and repair, subject only to punchlist items, latent defects and Landlord’s obligations set forth in Article 7 of this Lease. 
  
 1.1.2 The Building and The Project. The Premises are a part of the building set forth in Section 2.1 of the Summary (the
“Building”). The Building is part of an office project known as “Kilroy Centre Del Mar”. The term “Project,” as used in this Lease, shall mean (i) the Building, the “Adjacent
Buildings” and the Common Areas, and (ii) the land (which is improved with landscaping, parking facilities and other improvements) upon which the Building, Adjacent Buildings and the Common Areas are located. For purposes of this Lease, the
“Adjacent Buildings” shall consist of (i) that certain three (3)-floor building located at 3579 Valley Centre Drive, San Diego, California 92130 and containing approximately 52,375 rentable square feet of space (“Building
1”), (ii) that certain five (5)-floor building located at 3611 Valley Centre Drive, San Diego, California 92130 and containing approximately 129,680 rentable square feet of space (“Building 2”), (iii) that certain five
(5)-floor building located at 3661 Valley Centre Drive, San Diego, California 92130 and containing approximately 129,752 rentable square feet of space (“Building 3”), and (iv) that certain five (5)-floor building located at 3811
Valley Centre Drive, San Diego, California 92130 and containing approximately 112,067 rentable square feet of space (“Building 5”). 
  

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 1.1.3 Common Areas. Tenant shall have the non-exclusive right to use in common with other
tenants in the Project, and subject to the rules and regulations referred to in Article 5 of this Lease, those portions of the Project which are provided, from time to time, for use in common by Landlord, Tenant and any other tenants of the Project
(such areas, together with such other portions of the Project designated by Landlord, in its reasonable discretion, including certain areas designated for the exclusive use of certain tenants, or to be shared by Landlord and certain tenants, are
collectively referred to herein as the “Common Areas”). The Common Areas shall consist of the “Project Common Areas” and the “Building Common Areas.” The term “Project Common
Areas,” as used in this Lease, shall mean the portion of the Project designated as such by Landlord. The term “Building Common Areas,” as used in this Lease, shall mean the portions of the Common Areas located within the
Building designated as such by Landlord. The manner in which the Common Areas are maintained and operated shall be at the reasonable discretion of Landlord (provided Tenant’s use or occupancy of the Premises is not adversely materially impacted
thereby) and the use thereof shall be subject to the “Rules and Regulations” set forth on Exhibit D, attached hereto, provided that Landlord shall at all times maintain and operate the Common Areas in a first-class manner
consistent with the “Comparable Buildings,” as such term is defined in Section 2.2.2 of this Lease. Landlord reserves the right to close temporarily, make alterations or additions to, or change the location of elements of the
Project and the Common Areas; provided that no such changes shall be permitted which materially reduce Tenant’s rights or access hereunder. Except when and where Tenant’s right of access is specifically excluded in this Lease, Tenant shall
have the right of access to the Premises, the Building, and the Project parking facility twenty-four (24) hours per day, seven (7) days per week during the “Lease Term” and any “Option Term,” as those terms are defined in
Section 2.1 and Section 2.2.1 respectively, below. 
  
 1.2 Stipulation of Rentable Square Feet of Premises and Building. For purposes of this Lease, the “rentable square feet” of the Premises and Building set forth in Section 2 of the Summary were calculated
pursuant to Standard Method of Measuring Floor Area in Office Buildings, ANSI Z65.1 - 1996 (“BOMA”), and therefore the “rentable square feet” of the Premises shall be deemed as set forth in Section 2.2 of the
Summary and the rentable square feet of the Building shall be deemed as set forth in Section 2.1 of the Summary. 
  
 1.3 Additional Premises. Effective upon the earlier to occur of (i) the date upon which Tenant first commences to conduct business in any
portion of the Additional Premises (provided, however, the mere storage in the Additional Premises of Tenant’s furniture, computers, similar personal property and any other office-related materials that may require storage shall be deemed not
to constitute the commencement of business therein), and (ii) the second (2nd) anniversary of the Commencement Date
(the “Additional Premises Commencement Date”), which is anticipated to occur as of March 1, 2005, Tenant shall lease from Landlord and Landlord shall lease to Tenant, in addition to the Initial Premises, the Additional Premises.
Consequently, effective upon the Additional Premises Commencement Date and notwithstanding any contrary provision of this Lease, the Premises shall be increased to include the Additional Premises. Except as provided in this Section 1.3,
Tenant’s lease of the Additional Premises shall be subject to the terms and conditions set forth in this Lease. The lease term (the “Additional Premises Term”) for the Additional Premises shall commence, and Tenant shall
commence payment of “Rent,” as that term is defined in Section 4.1, below, for the Additional Premises on the Additional Premises Commencement Date, and shall terminate on the Lease Expiration Date, as set forth in Section
3.3 of the Summary. In connection with such Additional Premises, provided that Tenant does not interfere with any work performed by or on behalf of Landlord in the Building or the Additional Premises, Landlord shall provide Tenant access thereto
on or before the earlier to occur of (i) September 1, 2004 (i.e., the date which is 180 days preceding the anticipated Additional Premises Commencement Date), and (ii) the date which is thirty (30) days following Tenant’s written request for
access thereto (as applicable, the “Additional Premises Access Date”); provided, however, if such Additional Premises Access Date occurs prior to September 1, 2004 as a result of Tenant’s request, in no 
  

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 event shall the date upon which Tenant is deemed to have first commenced to conduct business in any portion of the
Premises be later than the day which is 180 days following such Additional Premises Access Date; provided further, however, that notwithstanding the access identified in this sentence, (A) Tenant shall, prior to the Additional Premises Access Date,
be allowed to utilize the Additional Premises for the storage of Tenant’s furniture, computers, similar personal property and any other office-related materials that may require storage, and (B) the construction, pursuant to the TCCs of the
Tenant Work Letter, of Tenant’s planned “stairwell feature” connecting all five floors of the Premises, shall not itself trigger the Additional Premises Commencement Date. Tenant shall hold Landlord harmless from and indemnify,
protect and defend Landlord against any loss or damage to the Building or Additional Premises and against injury to any persons caused by Tenant’s use of the Additional Premises pursuant to this Section 1.3. 
  
 1.4 Right of First Refusal. Landlord hereby grants to the
Tenant originally named in this Lease (the “Original Tenant”), its “Affiliates,” as that term is set forth in Section 14.8 of this Lease, and any assignee of the Original Tenant’s interest in this Lease
pursuant to the TCCs of Article 14 of this Lease (each, a “Permitted Assignee”), a right of first refusal with respect to the entire first (1st) floor of Building 5 (the “First Refusal Space”); provided, however, such right of first refusal shall only apply to the extent Landlord
gains control over such First Refusal Space. 
  
 1.4.1
Procedure for Lease. 
  
 1.4.1.1 Procedure
for Offer. Landlord shall notify Tenant (the “First Refusal Notice”) from time-to-time when and if Landlord receives a “bona-fide third-party offer” for space in the Building. Pursuant to such First Refusal Notice,
Landlord shall offer to lease to Tenant the applicable First Refusal Space. The First Refusal Notice shall describe the First Refusal Space, and the lease term, rent and other fundamental economic terms and conditions, including the method of
measurement of rentable and usable square feet, upon which Landlord proposes to lease such First Refusal Space pursuant to the bona-fide third-party offer. For purposes of this Section 1.4, a “bona-fide third-party offer”
shall mean a counter-offer received by Landlord to lease First Refusal Space from a qualified third party (i.e., a prospective tenant reasonably acceptable (vis-à-vis the parameters for acceptance set forth in Sections 14.2.1 through
14.2.6 of this Lease) to Landlord for such First Refusal Space). For purposes of example only, the following would each constitute a bone-fide third-party offer: 
  

	 	(i)	Landlord receives a request for proposal from a qualified third party. Landlord responds to the request for proposal with a lease proposal and subsequently receives a written
bona-fide counter proposal from the qualified third party. 

  

	 	(ii)	Landlord receives a written offer to lease from a qualified third party. Landlord responds to the offer with a written counter offer and subsequently receives a bona-fide counter to
Landlord’s counter offer from the qualified third party. 

  
 1.4.1.2 Procedure for Acceptance. If Tenant wishes to exercise Tenant’s right of first refusal with respect to the First Refusal Space described in the First Refusal Notice, then within five (5)
business days of delivery of the First Refusal Notice to Tenant, Tenant shall deliver notice to Landlord of Tenant’s exercise of its right of first refusal with respect to all of the First Refusal Space described in the First Refusal Notice at
the rent, for the term and upon the other fundamental economic terms and conditions contained in such First Refusal Notice. If Tenant does not so notify Landlord within such five (5) day period of Tenant’s exercise of its first refusal right,
then Landlord shall be free to negotiate and enter into a lease for the First Refusal Space with the party with whom the “bona-fide 
  

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 third-party offer” was made, on the net-effective economic terms and the fundamental non-economic terms which are no
more than four percent (5.0%) more beneficial to such party than those set forth in the First Refusal Notice. In the event Landlord does not lease such First Refusal Space to such party pursuant to the foregoing sentence within one hundred twenty
(120) days of the date of such First Refusal Notice, Tenant shall retain the right of first refusal set forth in this Section 1.4 and Landlord shall provide Tenant with another First Refusal Notice, when and if Landlord receives any
subsequent “bona-fide third-party offer”. After Landlord enters into any lease of First Refusal Space to any such third party in accordance with the foregoing (“Third Party Lease”), Tenant’s rights under this
Section 1.4 shall be subordinate to the rights of the tenant under the Third Party Lease with respect to the space leased and encumbered pursuant to the provisions of the Third Party Lease, all extensions and renewals thereof, all pure
expansion options contained therein which are stated as Landlord delivery obligations within a certain time frame for a certain amount of space, and all right of first offer expansions contained therein. 
  
 1.4.2 Amendment to Lease. If Tenant timely exercises
Tenant’s right of first refusal to lease First Refusal Space as set forth herein, Landlord and Tenant shall within thirty (30) days thereafter execute an amendment to this Lease (the “First Refusal Space Amendment”) for such First
Refusal Space upon the terms set forth in the First Refusal Notice, but otherwise upon the TCCs set forth in this Lease and this Section 1.4. Notwithstanding the foregoing, Landlord may, upon Tenant’s reasonable consent (which consent
shall be granted or withheld within two (2) business days of request therefore), require that a separate lease be executed by Landlord and Tenant in connection with Tenant’s lease of the First Refusal Space, in which event such lease (the
“First Refusal Space Lease”) shall be on the same TCCs as the Initial Premises, except as provided in this Section 1.4 and in this Lease. The First Refusal Lease, if applicable, shall be executed by Landlord and Tenant within thirty
(30) days following Tenant’s exercise of its right to lease the First Refusal Space. 
  
 1.4.3 Termination of First Refusal Right. The rights contained in this Section 1.4 shall be personal to the Original Tenant and may only be exercised by the Original Tenant, its Affiliate or its
Permitted Assignee (and not any other assignee, subleasee or other transferee of the Original Tenant’s interest in this Lease) if the Original Tenant, its Affiliate and/or its Permitted Assignee (i) is in occupancy of the entire then-existing
Premises, or (ii) is in occupancy of no less than sixty percent (60%) of the then-existing Premises and retains the absolute right, and confirms in writing concurrently with its acceptance notice to Landlord, its intent to itself occupy the entire
First Refusal Space throughout the term applicable to such First Refusal Space. The right to lease First Refusal Space as provided in this Section 1.4 may not be exercised if, as of the date of the attempted exercise of the expansion option
by Tenant, or as of the scheduled date of delivery of such First Refusal Space to Tenant, Tenant is in default under this Lease (beyond any applicable notice and cure periods) or Tenant has previously been in economic default under this Lease
(beyond any applicable notice and cure periods) more than twice during the previous twelve (12) month period. 
  
 ARTICLE 2 
  
 LEASE TERM; OPTION TERM(S) 
  
 2.1 Initial Lease Term. The TCCs of this Lease shall be effective as of the date of this Lease. The term of this Lease (the “Lease Term”) shall be as set forth in Section 3.1 of
the Summary, shall commence on the date set forth in Section 3.2 of the Summary (the “Lease Commencement Date”). The term of Tenant’s lease of the Additional Premises shall commence as set forth in Section 1.3,
above. The term of this Lease with respect to the Initial Premises and the Additional Premises shall terminate on the date set forth in Section 3.3 of the Summary (the “Lease Expiration Date”) unless this Lease is sooner
terminated as hereinafter provided. For purposes of this Lease, the term “Lease Year” shall mean each consecutive twelve (12) month period during the Lease Term; provided, however, that the first Lease 
  

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 Year shall commence on the Lease Commencement Date and end on the last day of the eleventh month thereafter and the
second and each succeeding Lease Year shall commence on the first day of the next calendar month; and further provided that the last Lease Year shall end on the Lease Expiration Date. At any time during the Lease Term, Landlord may deliver to Tenant
a notice in the form as set forth in Exhibit C, attached hereto, as a confirmation only of the information set forth therein, which Tenant shall execute and return to Landlord within five (5) days of receipt thereof. 
  
 2.2 Option Term(s). 
  
 2.2.1 Option Right. Landlord hereby grants the Original
Tenant, its Affiliates and any Permitted Assignee, two (2) options to extend the Lease Term for the entire Premises each by a period of five (5) years (each, an “Option Term”). Such option shall be exercisable only by Notice
delivered by Tenant to Landlord as provided below, provided that, as of the date of delivery of such Notice, Tenant is not in Default under this Lease (beyond any applicable notice and cure periods). Upon the proper exercise of such option to
extend, and provided that, as of the end of the then applicable Lease term, Tenant is not in Default under this Lease (beyond any applicable notice and cure periods), the Lease Term, as it applies to the entire Premises, shall be extended for a
period of five (5) years. The rights contained in this Section 2.2 shall only be exercised by the Original Tenant, its Affiliate and/or a Permitted Assignee (and not any other assignee, sublesee or other transferee of the Original
Tenant’s interest in this Lease) if Original Tenant, its Affiliate and/or a Permitted Transferee either (i) is in occupancy of the entire then-existing Premises, or (ii) retains the absolute right, and confirms in writing concurrently with
Exercise Notice its intent, to occupy the entire then-existing Premises throughout the applicable Option Term. 
  
 2.2.2 Option Rent. The Rent payable by Tenant during the Option Term (the “Option Rent”) shall be equal to the Market Rent
as set forth below. For purposes of this Lease, the term “Market Rent” shall mean rent (including additional rent and considering any “base year” or “expense stop” applicable thereto), including all escalations,
at which tenants, as of the commencement of the applicable term are, pursuant to transactions completed within the twenty-four (24) months prior to the first day of the applicable Option Term, leasing non-sublease, non-encumbered, non-synthetic,
non-equity space (unless such space was leased pursuant to a definition of “fair market” comparable to the definition of Market Rent) comparable in size, location and quality to the Premises for a “Comparable Term,” as that term
is defined in this Section 2.2.2 (the “Comparable Deals”), which comparable space is located in the “Comparable Buildings,” as that term is defined in this Section 2.2.2, giving appropriate consideration to
the annual rental rates per rentable square foot (adjusting the base rent component of such rate to reflect a net value after accounting for whether or not utility expenses are directly paid by the tenant such as Tenant’s direct utility
payments provided for in Section 6.1 of this Lease), the standard of measurement by which the rentable square footage is measured, the ratio of rentable square feet to usable square feet, and taking into consideration only, and granting only,
the following concessions (provided, however, that the rent payable in Comparable Deals in which the terms of such Comparable Deals are determined by use of a discounted fair market rate formula (e.g., at 95% of the FMV) shall be equitably
increased in order that such Comparable Deals will not reflect a discounted rate; provided further, however, that the rent payable in Comparable Deals in which the terms of such Comparable Deals are determined by use of a premium over the fair
market rate formula (e.g., at 105% of the FMV) shall be equitably decreased in order that such Comparable Deals will not reflect a premium rate) (collectively, the “Rent Concessions”): (a) rental abatement concessions or
build-out periods, if any, being granted such tenants in connection with such comparable spaces; (b) tenant improvements or allowances provided or to be provided for such comparable space, taking into account the value of the existing improvements
in the Premises, such value to be based upon the age, quality and layout of the improvements and the extent to which the same could be utilized by general office users as contrasted with this specific Tenant, (c) Proposition 13 protection, and (d)
all other monetary concessions, if any, being granted such tenants in 
  

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 connection with such comparable space; provided, however, that notwithstanding anything to the contrary herein, no
consideration shall be given to the fact that Landlord is or is not required to pay a real estate brokerage commission in connection with the applicable term or the fact that the Comparable Deals do or do not involve the payment of real estate
brokerage commissions. The term “Comparable Term” shall refer to the length of the lease term, without consideration of options to extend such term, for the space in question. In addition, the determination of the Market Rent shall
include a determination as to whether, and if so to what extent, Tenant must provide Landlord with financial security, such as a letter of credit or guaranty, for Tenant’s rent obligations during any Option Term. Such determination shall be
made by reviewing the extent of financial security then generally being imposed in Comparable Transactions upon tenants of comparable financial condition and credit history to the then existing financial condition and credit history of Tenant (with
appropriate adjustments to account for differences in the then-existing financial condition of Tenant and such other tenants). If in determining the Market Rent, Tenant is entitled to a tenant improvement or comparable allowance for the improvement
of the Premises (the “Option Term TI Allowance”), Landlord may, at Landlord’s sole option, elect any or a portion of the following: (A) to grant some or all of the Option Term TI Allowance to Tenant in the form as described
above (i.e., as an improvement allowance), and/or (B) to reduce the rental rate component of the Market Rent to be an effective rental rate which takes into consideration that Tenant will not receive the total dollar value of such excess Option Term
TI Allowance (in which case the Option Term TI Allowance evidenced in the effective rental rate shall not be granted to Tenant). The term “Comparable Buildings” shall mean the Building and other first-class office buildings which
are comparable to the Building in terms of age (based upon the date of completion of construction or major renovation as to the building containing the portion of the Premises in question), quality of construction, level of services and amenities,
size and appearance, and are located within the University Towne Center (i.e., the area from two (2) blocks to the North of La Jolla Village Drive to two (2) blocks to the South of La Jolla Village Drive between the I-5 and 1-805 freeways) and Del
Mar geographical areas (the “Comparable Area”). 
  
 2.2.3 Exercise of Option. The option contained in this Section 2.2 shall be exercised by Tenant, if at all, only in the manner set forth in this Section 2.2.3. Tenant shall deliver notice (the “Exercise
Notice”) to Landlord not more than fifteen (15) months nor less than twelve (12) months prior to the expiration of the then Lease Term, stating that Tenant is exercising its option. Concurrently with such Exercise Notice, Tenant shall
deliver to Landlord Tenant’s calculation of the Market Rent (the “Tenant’s Option Rent Calculation”). Landlord shall deliver notice (the “Landlord Response Notice”) to Tenant on or before the date which is
thirty (30) days after Landlord’s receipt of the Exercise Notice and Tenant’s Option Rent Calculation (the “Landlord Response Date”), stating that (A) Landlord is accepting Tenant’s Option Rent Calculation as the
Market Rent, or (B) rejecting Tenant’s Option Rent Calculation and setting forth Landlord’s calculation of the Market Rent (the “Landlord’s Option Rent Calculation”). Within ten (10) business days of its receipt of
the Landlord Response Notice, Tenant may, at its option, accept the Market Rent contained in the Landlord’s Option Rent Calculation. If Tenant does not affirmatively accept or Tenant rejects the Market Rent specified in the Landlord’s
Option Rent Calculation, the parties shall follow the procedure, and the Market Rent shall be determined as set forth in Section 2.2.4. 
  
 2.2.4 Determination of Market Rent. In the event Tenant objects or is deemed to have objected to the Market Rent, Landlord and Tenant shall
attempt to agree upon the Market Rent using reasonable good-faith efforts. If Landlord and Tenant fail to reach agreement within sixty (60) days following Tenant’s objection or deemed objection to the Landlord’s Option Rent Calculation
(the (the “Outside Agreement Date”), then (i) in connection with the Option Rent, Landlord’s Option Rent Calculation and Tenant’s Option Rent Calculation, each as previously delivered to the other party, shall be submitted
to the arbitrators pursuant to the TCCs of this Section 2.2.4, and (ii) in connection with any other contested calculation of market Rent, the parties shall each make a separate determination of the Market Rent and shall submit the same to
the arbitrators pursuant to the TCCs of this Section 2.2.4. The 
  

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 submittals shall be made concurrently with the selection of the arbitrators pursuant to this Section 2.2.4 and
shall be submitted to arbitration in accordance with Section 2.2.4.1 through 2.2.4.7 of this Lease, but subject to the conditions, when appropriate, of Section 2.2.3. 
  
 2.2.4.1 Landlord and Tenant shall each appoint one arbitrator who shall by profession be a real estate broker, appraiser or
attorney who shall have been active over the five (5) year period ending on the date of such appointment in the leasing (or appraisal, as the case may be) of first-class office properties in the Comparable Area. The determination of the arbitrators
shall be limited solely to the issue of whether Landlord’s or Tenant’s submitted Market Rent, is the closest to the actual Market Rent as determined by the arbitrators, taking into account the requirements of Section 2.2.2 of this
Lease. Each such arbitrator shall be appointed within fifteen (15) days after the applicable Outside Agreement Date. Landlord and Tenant may consult with their selected arbitrators prior to appointment and may select an arbitrator who is favorable
to their respective positions. The arbitrators so selected by Landlord and Tenant shall be deemed (“Advocate Arbitrators”). 
  
 2.2.4.2 The two Advocate Arbitrators so appointed shall be specifically required pursuant to an engagement letter within ten (10) days of the date of the
appointment of the last appointed Advocate Arbitrator agree upon and appoint a third arbitrator (“Neutral Arbitrator”) who shall be qualified under the same criteria set forth hereinabove for qualification of the two Advocate
Arbitrators except that neither the Landlord or Tenant or either party’s Advocate Arbitrator may, directly or indirectly, consult with the Neutral Arbitrator prior to subsequent to his or her appearance. The Neutral Arbitrator shall be retained
via an engagement letter jointly prepared by Landlord’s counsel and Tenant’s counsel. 
  
 2.2.4.3 The three arbitrators shall within thirty (30) days of the appointment of the Neutral Arbitrator reach a decision as to Market Rent and determine
whether the Landlord’s or Tenant’s determination of Market Rent as submitted pursuant to Section 2.2.4.1 and Section 2.2.3 of this Lease is closest to Market Rent as determined by the arbitrators and simultaneously publish a
ruling (“Award”) indicating whether Landlord’s or Tenant’s submitted Market Rent is closest to the Market Rent as determined by the arbitrators. Following notification of the Award, the Landlord’s or Tenant’s
submitted Market Rent determination, whichever is selected by the arbitrators as being closest to Market rent shall become the then applicable Market Rent. 
  
 2.2.4.4 The Award issued by the majority of the three arbitrators shall be binding upon Landlord and Tenant. 
  
 2.2.4.5 If either Landlord or Tenant fail to appoint an Advocate Arbitrator
within fifteen (15) days after the applicable Outside Agreement Date, either party may petition the presiding judge of the Superior Court of San Diego County to appoint such Advocate Arbitrator subject to the criteria in Section 2.2.4.1 of
this Lease, or if he or she refuses to act, either party may petition any judge having jurisdiction over the parties to appoint such Advocate Arbitrator. 
  
 2.2.4.6 If the two Advocate Arbitrators fail to agree upon and appoint the Neutral Arbitrator, then either party may petition the presiding judge of the
Superior Court of San Diego County to appoint the Neutral Arbitrator, subject to criteria in Section 2.2.4.1 of this Lease, or if he or she refuses to act, either party may petition any judge having jurisdiction over the parties to appoint
such arbitrator. 
  
 2.2.4.7 The cost of arbitration shall be paid
by Landlord and Tenant equally. 
  

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 ARTICLE 3 
  
 BASE RENT 
  
 3.1 Generally. Tenant shall pay, without prior notice or demand, to Landlord or Landlord’s agent at the management office of the
Project, or, at Landlord’s option, at such other place as Landlord may from time to time designate in writing, by a check for currency which, at the time of payment, is legal tender for private or public debts in the United States of America,
base rent (“Base Rent”) as set forth in Section 4 of the Summary, payable in equal monthly installments as set forth in Section 4 of the Summary in advance on or before the first day of each and every calendar month during
the Lease Term, without any setoff or deduction whatsoever. The Base Rent for the first full month of the Lease Term which occurs after the expiration of any free rent period shall be paid at the time of Tenant’s execution of this Lease. If any
Rent payment date (including the Lease Commencement Date and the Additional Premises Commencement Date) falls on a day of the month other than the first day of such month or if any payment of Rent is for a period which is shorter than one month, the
Rent for any fractional month shall accrue on a daily basis for the period from the date such payment is due to the end of such calendar month or to the end of the Lease Term at a rate per day which is equal to 1/365 of the applicable annual Rent.
All other payments or adjustments required to be made under the TCCs of this Lease that require proration on a time basis shall be prorated on the same basis. 
  

3.2 Abatement of Rent. In the event that Tenant is prevented from using, and does not use, the Premises or any portion thereof, as a
result of (i) any repair, maintenance or alteration performed by Landlord (or Landlord’s agents), or which Landlord (or Landlord’s agents) failed to perform, after the Lease Commencement Date and required by this Lease, which substantially
interferes with Tenant’s use of or ingress to or egress from the Building, Project (including the Project Common Areas), or Premises (including the Project parking areas to the extent reasonable replacement spaces are not provided); or (ii) any
failure by Landlord (or Landlord’s agents) to provide services, utilities or ingress to and egress from the Building, Project (including the Project Common Areas), or Premises as required pursuant to the TCCs of this Lease; or (iii) the
presence of Hazardous Materials not brought on the Premises by “Tenant Parties,” as that term is set forth in Section 10.1 of this Lease to the extent such presence substantially interferes with Tenant’s use of or ingress to or
egress from the Building, Project (including the Project Common Areas), or Premises (including the Project parking areas to the extent reasonable replacement spaces are not provided) (any such set of circumstances as set forth in items (i) through
(iii), above, to be known as an “Abatement Event”), then Tenant shall give Landlord Notice of such Abatement Event, and if such Abatement Event continues for three (3) consecutive business days after Landlord’s receipt of any
such Notice (the “Eligibility Period”), then, as Tenant’s sole remedy vis-à-vis such Abatement Event, the Base Rent and Tenant’s Share of Direct Expenses shall be abated or reduced, as the case may be, after
expiration of the Eligibility Period for such time that Tenant continues to be so prevented from using, and does not use, the Premises, or a portion thereof, in the proportion that the rentable area of the portion of the Premises that Tenant is
prevented from using, and does not use (“Unusable Area”), bears to the total rentable area of the Premises. Notwithstanding the foregoing, Landlord acknowledges and agrees that to the extent any rental interruption insurance
maintained by Landlord entitles Landlord to reimbursement for rent following an Abatement Event prior to the third (3rd) consecutive business day after Landlord’s receipt of the applicable Notice, the Eligibility Period shall accordingly be reduced such that the Eligibility Period shall end at such time that Landlord’s eligibility for
reimbursement from such insurance commences. In addition, and provided the applicable Notices are delivered to Landlord with regard to any Abatement Events, to the extent appropriately noticed Abatement Events occur cumulatively (as opposed to
consecutively) during more than five (5) business days in any calendar month during the Lease Term, Tenant’s right to receive rent abatement pursuant to this Section 3.2 shall commence immediately following such fifth (5th) cumulative day and, throughout the remainder of such calendar month, the Eligibility Period will not apply to any further
Abatement Events. Notwithstanding the 
  

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 foregoing, in the event that Tenant is prevented (from an objective, general office tenant perspective) from conducting,
and does not conduct, its business in more than fifty percent (50%) of the Premises for a period of time in excess of the Eligibility Period, and the remaining portion of the Premises is not sufficient to allow Tenant to effectively conduct its
business therein, and if Tenant does not conduct its business from such remaining portion, then for such time after expiration of the Eligibility Period during which Tenant is so prevented (again, from an objective, general office tenant
perspective) from effectively conducting its business therein, the Base Rent and Tenant’s Share of Direct Expenses for the entire Premises shall be abated. Landlord and Tenant hereby acknowledge that, in addition to the abatement rights set
forth in this Section 3.2, Tenant’s abatement rights following an event of damage and destruction or condemnation is provided pursuant to the TCCs of Articles 11 and 13 of this Lease. 
  
 ARTICLE 4 
  
 ADDITIONAL RENT 
  
 4.1 General Terms. In addition to paying the Base Rent
specified in Article 3 of this Lease, Tenant shall pay “Tenant’s Share” of the annual “Direct Expenses,” as those terms are defined in Sections 4.2.6 and 4.2.2 of this Lease, respectively,
which are in excess of the amount of Direct Expenses applicable to the “Base Year,” as that term is defined in Section 4.2.1, below; provided, however, that in no event shall any decrease in Direct Expenses for any Expense Year
below Direct Expenses for the Base Year entitle Tenant to any decrease in Base Rent or any credit against sums due under this Lease. Such payments by Tenant, together with any and all other amounts payable by Tenant to Landlord pursuant to the TCCs
of this Lease, are hereinafter collectively referred to as the “Additional Rent,” and the Base Rent and the Additional Rent are herein collectively referred to as “Rent.” All amounts due under this Article 4
as Additional Rent shall be payable for the same periods and in the same manner as the Base Rent. Without limitation on other obligations of Tenant which survive the expiration of the Lease Term, the obligations of Tenant to pay the Additional Rent
provided for in this Article 4 shall survive the expiration of the Lease Term. 
  
 4.2 Definitions of Key Terms Relating to Additional Rent. As used in this Article 4, the following terms shall have the meanings hereinafter set forth: 
  
 4.2.1 “Base Year” shall mean the period set forth in
Section 5 of the Summary. 
  
 4.2.2 “Direct
Expenses” shall mean “Operating Expenses” and “Tax Expenses.” 
  
 4.2.3 “Expense Year” shall mean each calendar year in which any portion of the Lease Term falls, through and including the calendar year in which the Lease Term expires, provided that Landlord, upon
notice to Tenant, may change the Expense Year from time to time to any other twelve (12) consecutive month period, and, in the event of any such change, Tenant’s Share of Direct Expenses shall be equitably adjusted for any Expense Year involved
in any such change to ensure Tenant is not negatively economically affected by such change. 
  
 4.2.4 “Operating Expenses” shall mean all expenses, costs and amounts of every kind and nature which Landlord pays or accrues during any Expense Year because of or in connection with the ownership,
management, maintenance, security, repair, replacement, restoration or operation of the Project, or any portion thereof, pursuant to sound real estate management and accounting principles. Without limiting the generality of the foregoing, Operating
Expenses shall specifically include any and all of the following: (i) the cost of supplying all utilities to the Common Areas (as opposed to space leased by Project tenants), the cost of operating, repairing, maintaining, and renovating the utility,
telephone, mechanical, sanitary, storm drainage, and elevator systems, and the cost of maintenance and service 
  

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 contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of
contesting any governmental enactments which may affect Operating Expenses, and the costs incurred in connection with a governmentally mandated transportation system management program or similar program; (iii) the cost of all insurance carried by
Landlord in connection with the Project; provided, however, to the extent insurance premiums are incurred in any Lease Year following the Base Year which are attributable to types of insurance coverage not maintained during the Base Year, Operating
Expenses for the Base Year shall be adjusted by the amount that Landlord would have incurred during the Base Year with respect to such type of insurance coverage, had such insurance coverage been maintained during the Base Year, (iv) the cost of
landscaping, relamping, and all supplies, tools, equipment and materials used in the operation, repair and maintenance of the Project, or any portion thereof; (v) costs incurred in connection with the parking areas servicing the Project; (vi) fees
and other costs, including management fees, consulting fees, legal fees and accounting fees, of all contractors and consultants in connection with the management, operation, maintenance and repair of the Project; (vii) payments under any equipment
rental agreements and the fair rental value of any management office space reasonably attributable to the Project (as opposed to being attributable to Landlord’s non-Project activities); (viii) wages, salaries and other compensation and
benefits, including taxes levied thereon, of all persons (other than persons generally considered to be higher in rank than the position of Project manager) engaged in the operation, maintenance and security of the Project; (ix) costs under any
instrument pertaining to the sharing of costs by the Project; (x) operation, repair, maintenance and replacement of all systems and equipment and components thereof of the Building; (xi) the cost of janitorial, alarm, security and other services,
replacement of wall and floor coverings, ceiling tiles and fixtures in common areas, maintenance and replacement of curbs and walkways, repair to roofs and re-roofing; (xii) amortization (including interest on the unamortized cost) of the cost of
acquiring or the rental expense of personal property used in the maintenance, operation and repair of the Project, or any portion thereof to the extent of cost savings reasonably anticipated by Landlord at the time of such expenditure to be incurred
in connection therewith; (xiii) the cost of capital improvements or other costs incurred in connection with the Project (A) which are intended to effect economies in the operation or maintenance of the Project, or any portion thereof, (B) that are
required to comply with present or anticipated conservation programs, (C) which are replacements or modifications of nonstructural items located in the Common Areas required to keep the Common Areas in good order or condition, or (D) that are
required under any governmental law or regulation by a federal, state or local governmental agency, except for capital repairs, replacements or other improvements to remedy a condition existing prior to the Lease Commencement Date which an
applicable governmental authority, if it had knowledge of such condition prior to the Lease Commencement Date, would have then required to be remedied pursuant to then-current governmental laws or regulations in their form existing as of the Lease
Commencement Date and pursuant to the then-current interpretation of such governmental laws or regulations by the applicable governmental authority as of the Lease Commencement Date; provided, however, that any capital expenditure shall be amortized
with interest (at the Interest Rate) over its useful life as Landlord shall reasonably determine pursuant to sound real estate management and accounting principles; (xiv) costs, fees, charges or assessments imposed by, or resulting from any mandate
imposed on Landlord by, any federal, state or local government for fire and police protection, trash removal, community services, or other services which do not constitute “Tax Expenses” as that term is defined in Section 4.2.5,
below; and (xv) payments under any easement, license, operating agreement, declaration, restrictive covenant, or instrument pertaining to the sharing of costs by the Building. Notwithstanding the foregoing, for purposes of this Lease, Operating
Expenses shall not, however, include: 
  
 (a) costs, including
marketing costs, legal fees, space planners’ fees, advertising and promotional expenses, and brokerage fees incurred in connection with the original construction or development, or original or future leasing of the Project, and costs, including
permit, license and inspection costs, incurred with respect to the installation of tenant improvements made for new tenants initially occupying space in the Project after the Lease Commencement Date or incurred in 
  

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 renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants of
the Project (excluding, however, such costs relating to any common areas of the Project or parking facilities); 
  
 (b) except as set forth in items (xii), (xiii), and (xiv) above, depreciation, interest and principal payments on mortgages and other debt costs, if any,
penalties and interest, costs of capital repairs and alterations, and costs of capital improvements and equipment; 
  
 (c) costs for which the Landlord is reimbursed by any tenant or occupant of the Project or by insurance by its carrier or any tenant’s carrier or by
anyone else, and electric power costs for which any tenant directly contracts with the local public service company; 
  
 (d) any bad debt loss, rent loss, or reserves for bad debts or rent loss; 
  
 (e) costs associated with the operation of the business of the partnership or entity which constitutes the Landlord, as the
same are distinguished from the costs of operation of the Project (which shall specifically include, but not be limited to, accounting costs associated with the operation of the Project). Costs associated with the operation of the business of the
partnership or entity which constitutes the Landlord include costs of partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of the Tenant may be in issue), costs of selling, syndicating,
financing, mortgaging or hypothecating any of the Landlord’s interest in the Project, and costs incurred in connection with any disputes between Landlord and its employees, between Landlord and Project management, or between Landlord and other
tenants or occupants, and Landlord’s general corporate overhead and general and administrative expenses; 
  
 (f) the wages and benefits of any employee who does not devote substantially all of his or her employed time to the Project unless such wages and
benefits are prorated to reflect time spent on operating and managing the Project vis-a-vis time spent on matters unrelated to operating and managing the Project; provided, that in no event shall Operating Expenses for purposes of this Lease include
wages and/or benefits attributable to personnel above the level of Project manager; 
  
 (g) amount paid as ground rental for the Project by the Landlord; 
  
 (h) overhead and profit increment paid to the Landlord or to subsidiaries or affiliates of the Landlord for services in the Project to the extent the
same exceeds the costs of such services rendered by qualified, first-class unaffiliated third parties on a competitive basis; 
  
 (i) any compensation paid to clerks, attendants or other persons in commercial concessions operated by the Landlord, provided that any compensation paid
to any concierge at the Project shall be includable as an Operating Expense; 
  
 (j) rentals and other related expenses incurred in leasing air conditioning systems, elevators or other equipment which if purchased the cost of which would be excluded from Operating Expenses as a capital cost,
except equipment not affixed to the Project which is used in providing janitorial or similar services and, further excepting from this exclusion such equipment rented or leased to remedy or ameliorate an emergency condition in the Project;

  
 (k) all items and services for which Tenant or any other
tenant in the Project is obligated to reimburse Landlord or which Landlord provides selectively to one or more tenants (other than Tenant) without reimbursement; 
  

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 (l) costs, other than those incurred in ordinary maintenance and repair, for sculpture, paintings,
fountains or other objects of art; 
  
 (m) any costs expressly
excluded from Operating Expenses elsewhere in this Lease; 
  
 (n)
rent for any office space occupied by Project management personnel to the extent the size or rental rate of such office space exceeds the size or fair market rental value of office space occupied by management personnel of the Comparable Buildings
in the vicinity of the Building, with adjustment where appropriate for the size of the applicable project; 
  
 (o) costs arising from the gross negligence or willful misconduct of Landlord or its agents, employees, vendors, contractors, or providers of materials
or services; and 
  
 (p) costs incurred to comply with applicable
laws with respect to “Hazardous Material,” as that term is defined in Section 29.33 of this Lease, which were in existence in the Building or on the Project prior to the Lease Commencement Date, and was of such a nature that a
federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the state, and under the conditions that it then existed in the Building or on the Project, would have then required the
removal, remediation or other action with respect to such Hazardous Material; and costs incurred to remove, remedy, contain, or treat Hazardous Material, which Hazardous Material is brought into the Building or onto the Project after the date hereof
by Landlord, Landlord’s agents or any other tenant of the Project and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such Hazardous Material, in the
state, and under the conditions, that it then exists in the Building or on the Project, would have then required the removal, remediation or other action with respect to such Hazardous Material. 
  
 (q) costs arising from defects in the base, shell or core of the Building or
improvements installed by Landlord. 
  
 If Landlord is not
furnishing any particular work or service (the cost of which, if performed by Landlord, would be included in Operating Expenses) to a tenant who has undertaken to perform such work or service in lieu of the performance thereof by Landlord, Operating
Expenses shall be deemed to be increased by an amount equal to the additional Operating Expenses which would reasonably have been incurred during such period by Landlord if it had at its own expense furnished such work or service to such tenant. If
the Project or Building is not at least ninety-five percent (95%) occupied during all or a portion of the Base Year or any Expense Year, Landlord shall elect to make an appropriate adjustment to the components of Operating Expenses for such year to
determine the amount of Operating Expenses that would have been incurred had the Project or Building been ninety-five percent (95%) occupied; and the amount so determined shall be deemed to have been the amount of Operating Expenses for such year.
Operating Expenses for the Base Year shall not include market-wide labor-rate increases due to extraordinary circumstances, including, but not limited to, boycotts and strikes, and utility rate increases due to extraordinary circumstances including,
but not limited to, conservation surcharges, boycotts, embargoes or other shortages, or amortized costs relating to capital improvements. The component of Operating Expenses related to electrical costs for the Base Year shall be referred to as the
“Base Year Electrical Costs,” and the component of Operating Expenses related to electrical costs for each calendar year after the Base Year shall be referred to as the “Subsequent Year Electrical Costs.” To the
extent that Landlord obtains a reduction in electrical costs such that the Subsequent Year Electrical Costs for the first calendar year or the second calendar year to occur after the Base Year are less than Base Year Electrical Costs, then the Base
Year Electrical Costs shall be deemed to be the lesser of Subsequent Year Electrical Costs for the first calendar year or the second calendar year to occur after the Base Year. 
  

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 Landlord shall not (i) make a profit by charging items to Operating Expenses that are otherwise also charged separately
to others, and (ii) subject to Landlord’s right to adjust the components of Operating Expenses described above in this paragraph, collect Operating Expenses from Tenant and all other tenants in the Building in an amount in excess of what
Landlord incurs for the items included in Operating Expenses. In addition, to the extent a new, distinct category of Operating Expenses (as opposed to an addition to an existing category, such as security or janitorial) for new services provided to
the Project and/or Building is included in any Expense Year following the Base Year, the Base Year shall be retroactively adjusted to include the cost which would have been incurred during the Base Year for such new services if such services had
been provided during the Base Year. 
  
 4.2.5 Taxes.

  
 4.2.5.1 “Tax Expenses” shall mean all
federal, state, county, or local governmental or municipal taxes, fees, charges or other impositions of every kind and nature, whether general, special, ordinary or extraordinary, (including, without limitation, real estate taxes, general and
special assessments, transit taxes, leasehold taxes or taxes based upon the receipt of rent, including gross receipts or sales taxes applicable to the receipt of rent, unless required to be paid by Tenant, personal property taxes imposed upon the
fixtures, machinery, equipment, apparatus, systems and equipment, appurtenances, furniture and other personal property used in connection with the Project, or any portion thereof), which shall be paid or accrued during (or otherwise attributable to)
the Base Year and any other Expense Year (without regard to any different fiscal year used by such governmental or municipal authority) because of or in connection with the ownership, leasing and operation of the Project, or any portion thereof.

  
 4.2.5.2 Tax Expenses shall include, without limitation: (i)
Any tax on the rent, right to rent or other income from the Project, or any portion thereof, or as against the business of leasing the Project, or any portion thereof; (ii) Any assessment, tax, fee, levy or charge in addition to, or in substitution,
partially or totally, of any assessment, tax, fee, levy or charge previously included within the definition of real property tax, it being acknowledged by Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California
in the June 1978 election (“Proposition 13”) and that assessments, taxes, fees, levies and charges may be imposed by governmental agencies for such services as fire protection, street, sidewalk and road maintenance, refuse removal
and for other governmental services formerly provided without charge to property owners or occupants, and, in further recognition of the decrease in the level and quality of governmental services and amenities as a result of Proposition 13, Tax
Expenses shall also include any governmental or private assessments or the Project’s contribution towards a governmental or private cost-sharing agreement for the purpose of augmenting or improving the quality of services and amenities normally
provided by governmental agencies; (iii) Any assessment, tax, fee, levy, or charge allocable to or measured by the area of the Premises or the Rent payable hereunder, including, without limitation, any business or gross income tax or excise tax with
respect to the receipt of such rent, or upon or with respect to the possession, leasing, operating, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises, or any portion thereof; (iv) Any assessment, tax, fee, levy
or charge, upon this transaction or any document to which Tenant is a party, creating or transferring an interest or an estate in the Premises, and (v) Any assessment, tax, fee, levy or charge, upon the tenant improvements constructed in the Project
(except to the extent attributable to tenant improvements which are above the “building standard” which are to be directly paid by tenants in the manner set forth in Section 4.5 of this Lease, below). 
  
 4.2.5.3 Any costs and expenses (including, without limitation, reasonable
attorneys’ fees) incurred in attempting to protest, reduce or minimize Tax Expenses shall be included in Tax Expenses in the Expense Year such expenses are paid. Except as set forth in Section 4.2.5.4, below, refunds of Tax Expenses
shall be credited against Tax Expenses and refunded to Tenant regardless of 
  

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 when received, based on the Expense Year to which the refund is applicable, provided that in no event shall the amount to
be refunded to Tenant for any such Expense Year (or Expense Years, if applicable) exceed the total amount paid by Tenant as Additional Rent under this Article 4 for such Expense Year (or Expense Years, if applicable). If Tax Expenses for any
period during the Lease Term or any extension thereof are increased after payment thereof for any reason, including, without limitation, error or reassessment by applicable governmental or municipal authorities, Tenant shall pay Landlord upon demand
Tenant’s Share of any such increased Tax Expenses included by Landlord as Building Tax Expenses pursuant to the TCCs of this Lease. Notwithstanding anything to the contrary contained in this Section 4.2.8 (except as set forth in
Section 4.2.8.1, above), there shall be excluded from Tax Expenses (i) all excess profits taxes, franchise taxes, gift taxes, capital stock taxes, inheritance and succession taxes, estate taxes, federal and state income taxes, and other taxes
to the extent applicable to Landlord’s general or net income (as opposed to rents, receipts or income attributable to operations at the Project), (ii) any items included as Operating Expenses, and (iii) any items paid by Tenant under Section
4.5 of this Lease. 
  
 4.2.5.4 Notwithstanding anything to
the contrary set forth in this Lease, the amount of Tax Expenses for the Base Year and any Expense Year shall be calculated without taking into account any decreases in real estate taxes obtained in connection with Proposition 8, and, therefore, the
Tax Expenses in the Base Year and/or an Expense Year may be greater than those actually incurred by Landlord, but shall, nonetheless, be the Tax Expenses due under this Lease; provided that (i) any costs and expenses incurred by Landlord in securing
any Proposition 8 reduction shall not be included in Direct Expenses for purposes of this Lease, and (ii) tax refunds under Proposition 8 shall not be deducted from Tax Expenses, but rather shall be the sole property of Landlord. Landlord and Tenant
acknowledge that this Section 4.2.5.4 is not intended to in any way affect (A) the inclusion in Tax Expenses of the statutory two percent (2.0%) annual increase in Tax Expenses (as such statutory increase may be modified by subsequent
legislation), or (B) the inclusion or exclusion of Tax Expenses pursuant to the terms of Proposition 13, which shall be governed pursuant to the terms of Sections 4.2.5.1 through 4.2.5.3, above. 
  
 4.2.6 “Tenant’s Share” shall mean the percentage set
forth in Section 6 of the Summary. 
  
 4.3 Allocation
of Direct Expenses. 
  
 4.3.1 Method of
Allocation. The parties acknowledge that the Building is a part of a multi-building project and that the costs and expenses incurred in connection with the Project (i.e. the Direct Expenses) should be shared between the tenants of the
Building and the tenants of the other buildings in the Project. Accordingly, as set forth in Section 4.2 above, Direct Expenses (which consists of Operating Expenses and Tax Expenses) are determined annually for the Project as a whole, and a
portion of the Direct Expenses, which portion shall be determined by Landlord on a commercially reasonable basis, shall be allocated to the tenants of the Building (as opposed to the tenants of any other buildings in the Project) and such portion
shall be the Direct Expenses for purposes of this Lease. Such portion of Direct Expenses allocated to the tenants of the Building shall include all Direct Expenses attributable solely to the Building and a commercially reasonable portion (based on
the percentage of the Building rentable square footage as compared to the Project’s rentable square footage) of the Direct Expenses attributable to the Project as a whole. 
  
 4.4 Calculation and Payment of Additional Rent. If for any Expense Year ending or commencing within the Lease
Term, Tenant’s Share of Direct Expenses for such Expense Year exceeds Tenant’s Share of Direct Expenses applicable to the Base Year, then Tenant shall pay to Landlord, in the manner set forth in Section 4.4.1, below, and as
Additional Rent, an amount equal to the excess (the “Excess”). 
  

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 4.4.1 Statement of Actual Building Direct Expenses and Payment by Tenant. Landlord shall
give to Tenant following the end of each Expense Year, a statement (the “Statement”) which shall state in general major categories the Building Direct Expenses incurred or accrued for the Base Year or such preceding Expense Year, as
applicable, and which shall indicate the amount of the Excess. Landlord shall use commercially reasonable efforts to deliver such Statement to Tenant on or before May 1 following the end of the Expense Year to which such Statement relates. Upon
receipt of the Statement for each Expense Year commencing or ending during the Lease Term, if an Excess is present, Tenant shall pay, within thirty (30) days after receipt of the Statement, the full amount of the Excess for such Expense Year, less
the amounts, if any, paid during such Expense Year as “Estimated Excess,” as that term is defined in Section 4.4.2, below, and if Tenant paid more as Estimated Excess than the actual Excess, Tenant shall receive a credit in the
amount of Tenant’s overpayment against Rent next due under this Lease. The failure of Landlord to timely furnish the Statement for any Expense Year shall not prejudice Landlord or Tenant from enforcing its rights under this Article 4.
Even though the Lease Term has expired and Tenant has vacated the Premises, when the final determination is made of Tenant’s Share of Building Direct Expenses for the Expense Year in which this Lease terminates, if an Excess is present, Tenant
shall, within thirty (30) days after receipt of the Statement, pay to Landlord such amount, and if Tenant paid more as Estimated Excess than the actual Excess, Landlord shall, within thirty (30) days, deliver a check payable to Tenant in the amount
of the overpayment. The provisions of this Section 4.4.1 shall survive the expiration or earlier termination of the Lease Term. Notwithstanding the immediately preceding sentence, Tenant shall not be responsible for Tenant’s Share of any
Building Direct Expenses attributable to any Expense Year which are first billed to Tenant more than one (1) calendar year after the Lease Expiration Date, provided that in any event Tenant shall be responsible for Tenant’s Share of Direct
Expenses levied by any governmental authority or by any public utility companies at any time following the Lease Expiration Date which are attributable to any Expense Year. 
  
 4.4.2 Statement of Estimated Building Direct Expenses. In addition, Landlord shall give Tenant a yearly
expense estimate statement (the “Estimate Statement”) which shall set forth in general major categories Landlord’s reasonable estimate (the “Estimate”) of what the total amount of Building Direct Expenses for
the then-current Expense Year shall be and the estimated excess (the “Estimated Excess”) as calculated by comparing the Building Direct Expenses for such Expense Year, which shall be based upon the Estimate, to the amount of
Building Direct Expenses for the Base Year. Landlord shall use commercially reasonable efforts to deliver such Estimate Statement to Tenant on or before May 1 following the end of the Expense Year to which such Estimate Statement relates. The
failure of Landlord to timely furnish the Estimate Statement for any Expense Year shall not preclude Landlord from enforcing its rights to collect any Additional Rent under this Article 4, nor shall Landlord be prohibited from revising any
Estimate Statement or Estimated Excess theretofore delivered to the extent necessary. Thereafter, Tenant shall pay, within thirty (30) days after receipt of the Estimate Statement, a fraction of the Estimated Excess for the then-current Expense Year
(reduced by any amounts paid pursuant to the last sentence of this Section 4.4.2). Such fraction shall have as its numerator the number of months which have elapsed in such current Expense Year, including the month of such payment, and twelve
(12) as its denominator. Until a new Estimate Statement is furnished (which Landlord shall have the right to deliver to Tenant at any time), Tenant shall pay monthly, with the monthly Base Rent installments, an amount equal to one-twelfth (1/12) of
the total Estimated Excess set forth in the previous Estimate Statement delivered by Landlord to Tenant. Throughout the Lease Term Landlord shall maintain books and records with respect to Building Direct Expenses in accordance with sound real
estate management and accounting principles, consistently applied. 
  
 4.5 Taxes and Other Charges for Which Tenant Is Directly Responsible. 
  
 4.5.1 Tenant shall be liable for and shall pay ten (10) days before delinquency, taxes levied against Tenant’s equipment, furniture, fixtures and any other personal property located in or about 
  

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 the Premises. If any such taxes on Tenant’s equipment, furniture, fixtures and any other personal property are
levied against Landlord or Landlord’s property or if the assessed value of Landlord’s property is increased by the inclusion therein of a value placed upon such equipment, furniture, fixtures or any other personal property and if Landlord
provides written notice to Tenant of such assessment promptly following Landlord’s receipt thereof and at least fifteen (15) business days prior to Landlord’s payment of the taxes based upon such increased assessment, which Landlord shall
have the right to do regardless of the validity thereof but only under proper protest if requested by Tenant within such fifteen (15) business-day period, Tenant shall upon demand repay to Landlord the taxes so levied against Landlord or the
proportion of such taxes resulting from such increase in the assessment, as the case may be. Notwithstanding the foregoing, Landlord agrees to use commercially reasonable efforts to diligently contest any assessment when reasonably requested by
Tenant to do so. 
  
 4.5.2 If the tenant improvements in the
Premises which are installed and/or paid for by Tenant (either directly or with the Tenant Improvement Allowance), whether or not affixed to the real property so as to become a part thereof, are assessed for real property tax purposes at a valuation
higher than the valuation at which tenant improvements conforming to Landlord’s “building standard” in other space in the Project are assessed, then the Tax Expenses levied against Landlord or the property by reason of such excess
assessed valuation shall be deemed to be taxes levied against personal property of Tenant and shall be governed by the provisions of Section 4.5.1, above. 
  
 4.5.3 Notwithstanding any contrary provision herein, Tenant shall pay prior to delinquency (except to the extent such tax is
included as an Operating Expense) any (i) rent tax or sales tax, service tax, transfer tax or value added tax, or any other applicable tax on the rent or services herein or otherwise respecting this Lease, (ii) taxes assessed upon or with respect to
the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any portion of the Project, including the Project parking facility; or (iii) taxes assessed upon this transaction or any
document to which Tenant is a party creating or transferring an interest or an estate in the Premises. 
  
 4.6 Landlord’s Books and Records. Upon Tenant’s written request given not more than one hundred eighty (180) days after
Tenant’s receipt of a Statement for a particular Expense Year, and provided that Tenant is not then in default under this Lease beyond the applicable cure period provided in this Lease, Landlord shall provide Tenant with an audited statement
(the “Accountant’s Statement”) concerning the Direct Expenses for such Expense Year from Landlord’s nationally recognized independent certified public accountants, and Landlord shall also furnish Tenant with such
reasonable supporting documentation in connection with said Direct Expenses as Tenant may reasonably request. Landlord shall provide said information and the Accountant’s Statement to Tenant within sixty (60) days after Tenant’s written
request therefor. The Accountant’s Statement shall contain sufficient detail to enable Tenant to verify that the terms of exclusions and inclusions with respect to Building Direct Expenses, as set forth in this Lease, have been adhered to in
computing the Excess payable by Tenant. If, within thirty (30) days following Tenant’s receipt of the Accountant’s Statement and supporting documentation, Tenant still disputes the applicable Direct Expenses, a determination as to the
proper amount shall be made, at Tenant’s expense, by a nationally recognized independent certified public accountant (the “Accountant”) mutually and reasonably agreed to by Landlord and Tenant; provided that if such
determination by the Accountant confirms that Direct Expenses were overstated by more than three percent (3.0%), then the cost of the Accountant and the cost of such determination shall be paid for by Landlord. Tenant hereby acknowledges that
Tenant’s sole right to inspect Landlord’s books and records and to contest the amount of Direct Expenses payable by Tenant shall be as set forth in this Section 4.6, and Tenant hereby waives any and all other rights pursuant to
Applicable Law to inspect such books and records and/or to contest the amount of Direct Expenses payable by Tenant. Tenant’s sole remedy shall be for the parties to make such appropriate payments or reimbursements, as the case may be,

  

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 (including interest on any such amount at the “Interest Rate,” as that term is defined in Article 25,
below) to each other as are determined to be owing, provided that any reimbursements payable by Landlord to Tenant shall be refunded to Tenant within forty-five (45) days following the final determination pursuant to this Section 4.6.

  
 ARTICLE 5 
  
 USE OF PREMISES 
  
 5.1 Permitted Use. Tenant shall use the Premises solely for the
Permitted Use set forth in Section 7 of the Summary and Tenant shall not use or permit the Premises or the Project to be used for any other purpose or purposes whatsoever without the prior written consent of Landlord, which may be withheld in
Landlord’s sole discretion. 
  
 5.2 Prohibited
Uses. The uses prohibited under this Lease shall include, without limitation, use of the Premises or a portion thereof for (i) offices of any agency or bureau of the United States or any state or political subdivision thereof to the extent
Landlord reasonably determines the same is not consistent with the quality of the Project as a first-class, institutional quality office project; (ii) offices or agencies of any foreign governmental or political subdivision thereof to the extent
Landlord reasonably determines the same is not consistent with the quality of the Project as a first-class, institutional quality office project; (iii) offices of any health care professionals or service organization; (iv) schools or other training
facilities which are not ancillary to corporate, executive or professional office use; (v) retail or restaurant uses; or (vi) communications firms such as radio and/or television stations. Tenant shall not allow occupancy density of use of the
Premises which is greater than the average density of the other general office tenants of Comparable Buildings. Tenant further covenants and agrees that Tenant shall not use, or suffer or permit any person or persons to use, the Premises or any part
thereof for any use or purpose contrary to the provisions of the Rules and Regulations set forth in Exhibit D, attached hereto, or in violation of the laws of the United States of America, the State of California, or the ordinances,
regulations or requirements of the local municipal or county governing body or other lawful authorities having jurisdiction over the Project) including, without limitation, any such laws, ordinances, regulations or requirements relating to hazardous
materials or substances, as those terms are defined by applicable laws now or hereafter in effect; provided, however, Landlord shall not enforce, change or modify the Rules and Regulations in a discriminatory manner and Landlord agrees that the
Rules and Regulations shall not be unreasonably modified or enforced in a manner which will unreasonably interfere with the normal and customary conduct of Tenant’s business. Tenant shall not do or permit anything to be done in or about the
Premises which will in any way damage the reputation of the Project or obstruct or interfere with the rights of other tenants or occupants of the Building, or injure or annoy them or use or allow the Premises to be used for any improper, unlawful or
objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall comply with all recorded covenants, conditions, and restrictions now or hereafter affecting the Project. 
  
 5.3 Tenant shall comply with all recorded covenants, conditions, and
restrictions currently affecting the Project. Additionally, Tenant acknowledges that the Project may be subject to any future covenants, conditions, and restrictions (the “CC&Rs”) which Landlord, in Landlord’s discretion,
deems reasonably necessary or desirable, and Tenant agrees that this Lease shall be subject and subordinate to such CC&Rs. Landlord shall have the right to require Tenant to execute and acknowledge, within fifteen (15) business days of a request
by Landlord, a “Recognition of Covenants, Conditions, and Restriction,” in a form substantially similar to that attached hereto as Exhibit F, agreeing to and acknowledging the CC&Rs. 
  

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 ARTICLE 6 
  
 SERVICES AND UTILITIES 
  

6.1 Standard Tenant Services. Landlord shall provide the following services on all days (unless otherwise stated below) during the Lease
Term. 
  
 6.1.1 Subject to limitations imposed by all governmental
rules, regulations and guidelines applicable thereto, Landlord shall provide heating and air conditioning (“HVAC”) when necessary for normal comfort for normal office use in the Premises from 7:00 A.M. to 6:00 P.M. Monday through
Friday, and on Saturdays from 9:00 A.M. to 1:00 P.M. (collectively, the “Building Hours”), except for the date of observation of New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day and, at
Landlord’s discretion (but subject to Tenant’s reasonable approval), other locally or nationally recognized holidays; provided, however, it shall be deemed unreasonable for Tenant to withhold its consent to such locally or nationally
recognized holidays to the extent the same are recognized as holidays by a majority of the landlords of Comparable Buildings (collectively, the “Holidays”). 
  
 6.1.2 Landlord shall provide adequate electrical wiring and facilities for connection to Tenant’s lighting fixtures and
incidental use equipment, provided that (i) the connected electrical load of the incidental use equipment does not exceed an average of five (5) watts per usable square foot of the Premises during the Building Hours on a monthly basis, and the
electricity so furnished for incidental use equipment will be at a nominal one hundred twenty (120) volts and no electrical circuit for the supply of such incidental use equipment will require a current capacity exceeding twenty (20) amperes
(excluding the computer room and copier rooms), and (ii) the connected electrical load of Tenant’s lighting fixtures does not exceed an average of one and one-half (1 1/2) watts per usable square foot of the Premises during the Building Hours on a monthly basis, and the electricity so furnished for Tenant’s lighting will be at a nominal two
hundred seventy seven (277) volts, which electrical usage shall be subject to applicable laws and regulations, including Title 24. Tenant will design Tenant’s electrical system serving any equipment producing nonlinear electrical loads to
accommodate such nonlinear electrical loads, including, but not limited to, oversizing neutral conductors and derating transformers. Engineering plans shall include a calculation of Tenant’s fully connected electrical design load with and
without demand factors and shall indicate the number of watts of unmetered and submetered loads. Tenant shall bear the cost of replacement of lamps, starters and ballasts for non-Building standard lighting fixtures within the Premises.

  
 6.1.3 Landlord shall provide city water from the
regular Building outlets for drinking, lavatory and toilet purposes in the Building Common Areas. 
  
 6.1.4 Landlord shall provide janitorial services, as set forth on Exhibit J, to the Premises, except the date of observation of the
Holidays, in and about the Premises and window washing services in a manner consistent with other comparable buildings in the vicinity of the Building. 
  
 6.1.5 Landlord shall provide security services, as set forth on Exhibit K, to the Project and Building in a manner consistent with other
comparable buildings in the vicinity of the Building. 
  
 6.1.6
Landlord shall provide nonexclusive, non-attended automatic passenger elevator service during the Building Hours, shall have one elevator available at all other times. 
  

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 Tenant shall cooperate fully with Landlord at all times and abide by all regulations and requirements
that Landlord may reasonably prescribe for the proper functioning and protection of the HVAC, electrical, mechanical and plumbing systems. 
  
 6.2 Direct Payment of Premises Utility Costs. Notwithstanding anything to the contrary set forth in Section 4.2.4 or this Article
6, Tenant shall pay one hundred percent (100%) of the cost of all utilities (including without limitation, electricity, gas, sewer and water) attributable to its use of the entire Premises. Such utility use shall include electricity, water, and
gas use for lighting, incidental use and HVAC. All such utility payments shall be excluded from Operating Expenses and shall be paid directly by Tenant prior to the date on which the same are due to the utility provider. Landlord shall, to the
extent reasonably practicable and at Tenant’s cost, separately meter the Premises, and shall otherwise equitably determine Tenant’s use of such utilities. 
  
 6.3 Overstandard Tenant Use. 
  
 6.3.1 Generally. Tenant shall not, without Landlord’s prior written consent, use heat-generating
machines, machines other than normal fractional horsepower office machines, or equipment or lighting other than Building standard lights in the Premises, which may affect the temperature otherwise maintained by the air conditioning system or
increase the water normally furnished for the Premises by Landlord pursuant to the terms of Section 6.1 of this Lease. If such consent is given, Landlord shall have the right to install supplementary air conditioning units or other facilities
in the Premises, including supplementary or additional metering devices, and the cost thereof, including the cost of installation, operation and maintenance, increased wear and tear on existing equipment and other similar charges, shall be paid by
Tenant to Landlord upon billing by Landlord. If Tenant uses water, electricity, heat or air conditioning in excess of that supplied by Landlord pursuant to Section 6.1 of this Lease, Tenant shall pay to Landlord, upon billing, the cost of
such excess consumption, the cost of the installation, operation, and maintenance of equipment which is installed in order to supply such excess consumption, and the cost of the increased wear and tear on existing equipment caused by such excess
consumption; and Landlord may install devices to separately meter any increased use and in such event Tenant shall pay the increased cost directly to Landlord, on demand, at the rates charged by the public utility company furnishing the same,
including the cost of such additional metering devices. Tenant’s use of electricity shall never exceed the capacity of the feeders to the Project or the risers or wiring installation, and subject to the terms of Section 29.32, below,
Tenant shall not install or use or permit the installation or use of any computer or electronic data processing equipment in the Premises, without the prior written consent of Landlord; provided, however, (i) the foregoing restriction shall not
apply to general office use of personal computers on the desktops of Tenant’s employees, and (ii) to the extent the “Approved Working Drawings,” as that term is set forth in Section 3.4 of the Tenant Work Letter, creates
separately ventilated “computer” and/or “data center” rooms, the foregoing restriction shall not apply within such designated areas. If Tenant desires to use heat, ventilation or air conditioning during hours other than those for
which Landlord is obligated to supply such utilities pursuant to the terms of Section 6.1 of this Lease, Tenant shall give Landlord such prior notice, if any, as Landlord shall from time to time establish as appropriate, of Tenant’s
desired use in order to supply such utilities, and Landlord shall supply such utilities to Tenant at such hourly cost to Tenant (which shall be treated as Additional Rent) as Landlord shall from time to time establish. 
  
 6.3.2 HVAC. Tenant shall be provided access to the HVAC
controls for each floor of the Building within the Premises. If Tenant uses HVAC in excess or two hundred ninety-nine (299) cumulative hours (per floor of the Building) during any calendar month of the Lease Term, such excess-hours of HVAC shall be
provided to Tenant subject to Tenant’s payment to Landlord of an amount reasonably determined by Landlord to be directly attributable to increased wear and tear on existing Building Systems caused by such excess use; provided, however, promptly
following Tenant’s request 
  

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 therefore, Landlord shall provide reasonable backup documentation in support of Landlord’s determination of such
excess-hours charge; provided further, however, Tenant’s use of HVAC on any floor of the Building (for hours other than the normal and customary business hours maintained by Tenant) shall be for a minimum of four (4) consecutive hours per such
use. As of the execution of this Lease, the excess-hours charge is anticipated to total approximately $7.35 per floor per hour. Amounts payable by Tenant to Landlord for such excess-hours use shall be deemed Additional Rent and shall be paid within
thirty (30) days after Tenant’s receipt of an invoice therefor. 
  
 6.4 Interruption of Use. Except as otherwise provided in this Lease, Tenant agrees that Landlord shall not be liable for damages, by abatement of Rent or otherwise, for failure to furnish or delay in furnishing any service
(including telephone and telecommunication services), or for any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by breakage, repairs, replacements, or improvements, by any
strike, lockout or other labor trouble, by inability to secure electricity, gas, water, or other fuel at the Building or Project after reasonable effort to do so, by any riot or other dangerous condition, emergency, accident or casualty whatsoever,
by act or default of Tenant or other parties, or by any other cause beyond Landlord’s reasonable control; and such failures or delays or diminution shall never be deemed to constitute an eviction or disturbance of Tenant’s use and
possession of the Premises or relieve Tenant from paying Rent or performing any of its obligations under this Lease, except as otherwise provided in this Lease. Furthermore, Landlord shall not be liable under any circumstances for a loss of, or
injury to, property or for injury to, or interference with, Tenant’s business, including, without limitation, loss of profits, however occurring, through or in connection with or incidental to a failure to furnish any of the services or
utilities as set forth in this Article 6. 
  
 ARTICLE
7 
  
 REPAIRS 
  
 Landlord shall maintain in first-class condition and operating order and keep
in good repair and condition the structural portions of the Building, including the foundation, floor/ceiling slabs, roof structure (as opposed to roof membrane), curtain wall, exterior glass and mullions, columns, beams, shafts (including elevator
shafts), stairs, parking areas, landscaping, exterior Project signage, stairwells, elevator cab, men’s and women’s washrooms, Building mechanical, electrical and telephone closets, and all common and public areas (collectively,
“Building Structure”) and the Base Building mechanical, electrical, life safety, plumbing, sprinkler systems and HVAC systems which were not constructed by Tenant Parties (collectively, the “Building Systems”) and
the Project Common Areas. Notwithstanding anything in this Lease to the contrary, Tenant shall be required to repair the Building Structure and/or the Building Systems to the extent caused due to Tenant’s use of the Premises for other than
normal and customary business office operations, unless and to the extent such damage is covered by insurance carried or required to be carried by Landlord pursuant to Article 10 and to which the waiver of subrogation is applicable (such
obligation to the extent applicable to Tenant as qualified and conditioned will hereinafter be defined as the “BS/BS Exception”). Tenant shall, at Tenant’s own expense, keep the Premises, including all improvements, fixtures
and furnishings therein, and the floor or floors of the Building on which the Premises are located, in good order, repair and condition at all times during the Lease Term (but such obligation shall not extend to the Building Structure and the
Building Systems except pursuant to the BS/BS Exception). In addition, Tenant shall, at Tenant’s own expense, but under the supervision and subject to the prior approval of Landlord, and within any reasonable period of time specified by
Landlord, promptly and adequately repair all damage to the Premises and replace or repair all damaged, broken, or worn fixtures and appurtenances (but such obligation shall not extend to the Building Structure and the Building Systems except
pursuant to the BS/BS Exception), except for damage caused by ordinary wear and tear or beyond the reasonable control of Tenant; provided however, that, at 
  

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 Landlord’s option, or if Tenant fails to make such repairs, Landlord may, after written notice to Tenant and
Tenant’s failure to repair within five (5) days thereafter, but need not, make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including a percentage of the cost thereof (to be uniformly established for the
Building and/or the Project) sufficient to reimburse Landlord for all overhead, general conditions, fees and other costs or expenses arising from Landlord’s involvement with such repairs and replacements forthwith upon being billed for same.
Landlord may, but shall not be required to, enter the Premises at all reasonable times, upon twenty-four (24) hours notice to Tenant (except in the case of an emergency), to make such repairs, alterations, improvements or additions to the Premises
or to the Project or to any equipment located in the Project as Landlord shall desire or deem necessary or as Landlord may be required to do by governmental or quasi-governmental authority or court order or decree; provided, however, except for (i)
emergencies, (ii) repairs, alterations, improvements or additions required by governmental or quasi-governmental authorities or court order or decree, or (iii) repairs which are the obligation of Tenant hereunder, any such entry into the Premises by
Landlord shall be performed in a manner so as not to materially interfere with Tenant’s use of, or access to, the Premises; provided that, with respect to items (ii) and (iii) above, Landlord shall use commercially reasonable efforts to not
materially interfere with Tenant’s use of, or access to, the Premises. Tenant hereby waives any and all rights under and benefits of subsection 1 of Section 1932 and Sections 1941 and 1942 of the California Civil Code or under any similar law,
statute, or ordinance now or hereafter in effect. 
  
 ARTICLE
8 
  
 ADDITIONS AND ALTERATIONS 

 
 8.1 Landlord’s Consent to Alterations. Tenant may not
make any improvements, alterations, additions or changes to the Premises or any mechanical, plumbing or HVAC facilities or systems pertaining to the Premises (collectively, the “Alterations”) without first procuring the prior
written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less than fifteen (15) business days prior to the commencement thereof, and which consent shall not be unreasonably withheld by Landlord, provided it
shall be deemed reasonable for Landlord to withhold its consent to any Alteration which adversely affects the structural portions or the systems or equipment of the Building or is visible from the exterior of the Building. Notwithstanding the
foregoing, Tenant shall be permitted to make Alterations following ten (10) business days notice to Landlord, but without Landlord’s prior consent, to the extent that such Alterations do not adversely affect the systems and equipment of the
Building, exterior appearance of the Building, or structural aspects of the Building (the “Cosmetic Alterations”). The construction of the initial improvements to the Premises shall be governed by the terms of the Tenant Work Letter
and not the terms of this Article 8. 
  
 8.2 Manner
of Construction. Landlord may impose, as a condition of its consent to any and all Alterations or repairs of the Premises or about the Premises, such requirements as Landlord in its reasonable discretion may deem desirable, including, but
not limited to, the requirement that Tenant utilize for such purposes only contractors reasonably approved by Landlord, and the requirement that upon Landlord’s request made at the time such consent is granted, Tenant shall, at Tenant’s
expense, remove such Alterations upon the expiration or any early termination of the Lease Term and return the affected portion of the Premises to a building standard tenant improved condition as determined by Landlord. Tenant shall construct such
Alterations and perform such repairs in a good and workmanlike manner, in conformance with any and all applicable federal, state, county or municipal laws, rules and regulations and pursuant to a valid building permit, issued by the City of San
Diego, all in conformance with Landlord’s construction rules and regulations; provided, however, that prior to commencing to construct any Alteration, Tenant shall meet with Landlord to discuss Landlord’s design parameters and code
compliance issues. In the event Tenant performs any Alterations in the Premises which require or 
  

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 give rise to governmentally required changes to the “Base Building,” as that term is defined below, then
Landlord shall, at Tenant’s expense, make such changes to the Base Building. The “Base Building” shall include the structural portions of the Building, and the public restrooms, elevators, exit stairwells and the systems and
equipment located in the internal core of the Building on the floor or floors on which the Premises are located. In performing the work of any such Alterations, Tenant shall have the work performed in such manner so as not to obstruct access to the
Project or any portion thereof, by any other tenant of the Project, and so as not to obstruct the business of Landlord or other tenants in the Project. Tenant shall use commercially reasonable efforts to use contractors, services, workmen, labor,
materials or equipment in a manner that minimizes any disturbance to labor harmony with the workforce or trades engaged in performing other work, labor or services in or about the Building or the Common Areas. In addition to Tenant’s
obligations under Article 9 of this Lease, upon completion of any Alterations, Tenant agrees to cause a Notice of Completion to be recorded in the office of the Recorder of the County of San Diego in accordance with Section 3093 of the Civil
Code of the State of California or any successor statute, and Tenant shall deliver to the Project construction manager a reproducible copy of the “as built” drawings of the Alterations, to the extent applicable, as well as all permits,
approvals and other documents issued by any governmental agency in connection with the Alterations. 
  
 8.3 Payment for Improvements. If payment is made directly to contractors, Tenant shall (i) comply with Landlord’s requirements for
final lien releases and waivers in connection with Tenant’s payment for work to contractors, and (ii) sign Landlord’s standard contractor’s rules and regulations to the extent the same is commercially reasonable. If Tenant orders any
work directly from Landlord, Tenant shall pay to Landlord an amount equal to five percent of the cost of such work to compensate Landlord for all overhead, general conditions, fees and other costs and expenses arising from Landlord’s
involvement with such work. If Tenant does not order any work directly from Landlord, Tenant shall reimburse Landlord, within sixty (60) days following Tenant’s receipt of applicable third-party invoices from Landlord, for Landlord’s
reasonable, actual, out-of-pocket costs and expenses actually incurred in connection with Landlord’s review of such work. 
  
 8.4 Construction Insurance. In addition to the requirements of Article 10 of this Lease, in the event that Tenant makes any
Alterations, prior to the commencement of such Alterations, Tenant shall provide Landlord with evidence that Tenant carries “Builder’s All Risk” insurance in an amount reasonably approved by Landlord covering the construction of such
Alterations, and such other insurance as Landlord may reasonably require, it being understood and agreed that all of such Alterations shall be insured by Tenant pursuant to Article 10 of this Lease immediately upon completion thereof. In
addition, Landlord may, in its reasonable discretion, require Tenant to obtain a lien and completion bond or some alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien-free completion of such Alterations and
naming Landlord as a co-obligee. 
  
 8.5 Landlord’s
Property. All Alterations, improvements, fixtures, equipment and/or appurtenances which may be installed or placed in or about the Premises, from time to time, shall be at the sole cost of Tenant and shall be and become the property of
Landlord, except that Tenant may remove any Alterations, improvements, fixtures and/or equipment which Tenant can substantiate to Landlord have not been paid for with any Tenant improvement allowance funds provided to Tenant by Landlord, provided
Tenant repairs any damage to the Premises and Building caused by such removal and returns the affected portion of the Premises to a building–standard “warm shell” condition as reasonably determined by Landlord. Furthermore, Landlord
may, by written notice to Tenant prior to the end of the Lease Term, or given following any earlier termination of this Lease, require Tenant, at Tenant’s expense, to remove any “Above Building Standard Tenant Improvements” identified
by Landlord pursuant to Section 2.4 of the Tenant Work Letter and/or any Alterations or improvements in the Premises, and to repair any damage to the Premises and Building caused by such removal and returns the affected portion of the
Premises to a building-standard “warm shell” condition as reasonably determined by Landlord; provided, 
  

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 however, if, in connection with its request for Landlord’s approval for particular Alterations or improvements, or
in connection with its notice to Landlord with respect to Cosmetic Alterations, (1) Tenant requests Landlord’s decision with regard to the removal of such Alterations or improvements, and (2) Landlord thereafter agrees in writing to waive the
removal requirement when approving (or, if applicable, following notification of) such Alterations or improvements, then Tenant shall not be required to so remove such Alterations or improvements; provided further, however, that if Tenant requests
such a determination from Landlord and Landlord, in its approval of any Alterations or improvements (or within 10 business days following Landlord’s receipt of notice from Tenant with respect to Cosmetic Alterations), fails to address the
removal requirement with regard to such Alterations or improvements, Landlord shall be deemed to have agreed to waive the removal requirement with regard to such Alterations or improvements. If Tenant fails to complete such removal and/or to repair
any damage caused by the removal of any Alterations or improvements in the Premises, and returns the affected portion of the Premises to a building-standard “warm shell” condition as reasonably determined by Landlord, then at
Landlord’s option, either (A) Tenant shall be deemed to be holding over in the Premises and Rent shall continue to accrue in accordance with the terms of Article 16, below, until such work shall be completed, or (B) Landlord may do so
and may charge the cost thereof to Tenant. Tenant hereby protects, defends, indemnifies and holds Landlord harmless from any liability, cost, obligation, expense or claim of lien in any manner relating to the installation, placement, removal or
financing of any such Alterations, improvements, fixtures and/or equipment in, on or about the Premises, which obligations of Tenant shall survive the expiration or earlier termination of this Lease. 
  
 ARTICLE 9 
  
 COVENANT AGAINST LIENS 
  
 Tenant shall keep the Project and Premises free from any liens or
encumbrances arising out of the work performed, materials furnished or obligations incurred by or on behalf of Tenant, and shall protect, defend, indemnify and hold Landlord harmless from and against any claims, liabilities, judgments or costs
(including, without limitation, reasonable attorneys’ fees and costs) arising out of same or in connection therewith. Tenant shall give Landlord notice at least twenty (20) days prior to the commencement of any such work on the Premises (or
such additional time as may be necessary under applicable laws) to afford Landlord the opportunity of posting and recording appropriate notices of non-responsibility. Tenant shall remove any such lien or encumbrance by bond or otherwise within
thirty (30) days after notice by Landlord, and if Tenant shall fail to do so, Landlord may pay the amount necessary to remove such lien or encumbrance, without being responsible for investigating the validity thereof. The amount so paid shall be
deemed Additional Rent under this Lease payable upon demand, without limitation as to other remedies available to Landlord under this Lease. Nothing contained in this Lease shall authorize Tenant to do any act which shall subject Landlord’s
title to the Building or Premises to any liens or encumbrances whether claimed by operation of law or express or implied contract. Any claim to a lien or encumbrance upon the Building or Premises arising in connection with any such work or
respecting the Premises not performed by or at the request of Landlord shall be null and void, or at Landlord’s option shall attach only against Tenant’s interest in the Premises and shall in all respects be subordinate to Landlord’s
title to the Project, Building and Premises. 
  
 ARTICLE
10 
  
 INSURANCE 
  
 10.1 Indemnification and Waiver. Tenant hereby assumes all risk
of damage to property or injury to persons in, upon or about the Premises from any cause whatsoever and agrees that Landlord, its partners, subpartners and their respective officers, agents, servants, employees, and independent 
  

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 contractors (collectively, “Landlord Parties”) shall not be liable for, and are hereby released from any
responsibility for, any damage either to person or property or resulting from the loss of use thereof, which damage is sustained by Tenant or by other persons claiming through Tenant. Tenant shall indemnify, defend, protect, and hold harmless the
Landlord Parties from any and all loss, cost, damage, expense and liability (including without limitation court costs and reasonable attorneys’ fees) (collectively, “Claims”) incurred in connection with or arising from any
cause in, on or about the Premises, any acts, omissions or negligence of Tenant or of any person claiming by, through or under Tenant, or of the contractors, agents, servants, employees, invitees, guests or licensees of Tenant or any such person,
in, on or about the Project or any breach of the TCCs of this Lease, either prior to, during, or after the expiration of the Lease Term. Provided, however, that the terms of the foregoing indemnity shall not apply to the negligence or willful
misconduct of Landlord, and, in such case, Landlord shall indemnify, defend, protect, and hold harmless Tenant, its officers, directors, agents, servants and employees (collectively, “Tenant Parties”) harmless from any such Claims
incurred by Tenant. Should Landlord be named as a defendant in any suit brought against Tenant in connection with or arising out of Tenant’s occupancy of the Premises, unless such suit arises from the negligence or willful misconduct of
Landlord, Tenant shall pay to Landlord its costs and expenses incurred in such suit, including without limitation, its actual professional fees such as appraisers’, accountants’ and attorneys’ fees. Further, Tenant’s agreement to
indemnify Landlord pursuant to this Section 10.1 is not intended and shall not relieve any insurance carrier of its obligations under policies required to be carried by Tenant pursuant to the provisions of this Lease, to the extent such
policies cover the matters subject to Tenant’s indemnification obligations; nor shall they supersede any inconsistent agreement of the parties set forth in any other provision of this Lease. The provisions of this Section 10.1 shall
survive the expiration or sooner termination of this Lease with respect to any claims or liability arising in connection with any event occurring prior to such expiration or termination. Notwithstanding anything to the contrary contained in this
Lease, nothing in this Lease shall impose any obligations on Tenant or Landlord to be responsible or liable for, and each hereby releases the other from all liability for, consequential damages other than those consequential damages incurred by
Landlord in connection with a holdover of the Premises by Tenant after the expiration or earlier termination of this Lease or incurred by Landlord in connection with any repair, physical construction or improvement work performed by or on behalf of
Tenant in the Project, but Tenant shall not be responsible for any direct or consequential damages resulting from Landlord’s or contractor’s acts in connection with the completion by Landlord of the tenant improvements in the Premises
pursuant to the Tenant Work Letter. 
  
 10.2 Landlord’s
Fire, Casualty and Liability Insurance. Landlord shall carry commercial general liability insurance with respect to the Building during the Lease Term, and shall further insure the Building during the Lease Term against loss or damage due to
fire and other casualties covered within the classification of fire and extended coverage, vandalism coverage and malicious mischief, sprinkler leakage, water damage and special extended coverage. Such coverage shall be in such amounts, from such
companies, and on such other terms and conditions, as Landlord may from time to time reasonably determine. Additionally, at the option of Landlord, such insurance coverage may include the risks of earthquakes and/or flood damage and additional
hazards, a rental loss endorsement and one or more loss payee endorsements in favor of the holders of any mortgages or deeds of trust encumbering the interest of Landlord in the Building or the ground or underlying lessors of the Building, or any
portion thereof. Notwithstanding the foregoing provisions of this Section 10.2, the coverage and amounts of insurance carried by Landlord in connection with the Building shall, at a minimum, be comparable to the coverage and amounts of
insurance which are carried by reasonably prudent landlords of Comparable Buildings, and Worker’s Compensation and Employer’s Liability coverage as required by applicable law. Tenant shall, at Tenant’s expense, comply with all
commercially reasonable insurance company requirements pertaining to the use of the Premises. If Tenant’s conduct or use of the Premises causes any increase in the premium for such insurance policies then Tenant shall reimburse Landlord for any
such increase. Tenant, at Tenant’s expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National Board of Fire Underwriters) and with any similar body. 
  

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 10.3 Tenant’s Insurance. Tenant shall maintain the following coverages in the
following amounts. 
  
 10.3.1 Commercial General Liability
Insurance covering the insured against claims of bodily injury, personal injury and property damage (including loss of use thereof) arising out of Tenant’s operations, and contractual liabilities (covering the performance by Tenant of its
indemnity agreements) including a Broad Form endorsement covering the insuring provisions of this Lease and the performance by Tenant of the indemnity agreements set forth in Section 10.1 of this Lease, for limits of liability not less than:

  

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

  
 10.3.2 Physical Damage
Insurance covering (i) all office furniture, business and trade fixtures, office equipment, free-standing cabinet work, movable partitions, merchandise and all other items of Tenant’s property on the Premises installed by, for, or at the
expense of Tenant, (ii) the “Tenant Improvements,” as that term is defined in Section 2.1 of the Tenant Work Letter, and any other improvements which exist in the Premises as of the Lease Commencement Date (excluding the Base
Building) (the “Original Improvements”), and (iii) all other improvements, alterations and additions to the Premises. Such insurance shall be written on an “all risks” of physical loss or damage basis, for the full
replacement cost value (subject to reasonable deductible amounts) new without deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include coverage for damage or
other loss caused by fire or other peril including, but not limited to, vandalism and malicious mischief, theft, water damage of any type, including sprinkler leakage, bursting or stoppage of pipes, and explosion, and providing business interruption
coverage for a period of one year. 
  
 10.3.3 Worker’s
Compensation and Employer’s Liability or other similar insurance pursuant to all applicable state and local statutes and regulations. 
  
 10.4 Form of Policies. The minimum limits of policies of insurance required of Tenant under this Lease shall in no event limit the liability
of Tenant under this Lease. Such insurance shall (i) name Landlord, and any other party the Landlord so specifies that has a material financial interest in the Project, as an additional insured, including Landlord’s managing agent, if any; (ii)
specifically cover the liability assumed by Tenant under this Lease, including, but not limited to, Tenant’s obligations under Section 10.1 of this Lease; (iii) be issued by an insurance company having a rating of not less than A-X in
Best’s Insurance Guide or which is otherwise acceptable to Landlord and licensed to do business in the State of California; (iv) be primary insurance as to all claims thereunder and provide that any insurance carried by Landlord is excess and
is non-contributing with any insurance requirement of Tenant; (v) be in form and content reasonably acceptable to Landlord; and (vi) provide that said insurance shall not be canceled or coverage changed unless thirty (30) days’ prior written
notice shall have been given to Landlord and any mortgagee of Landlord, the identity of whom has been provided to Tenant in writing. Tenant shall deliver said policy or policies or certificates thereof to Landlord on or before the Lease 

 

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 Commencement Date and at least thirty (30) days before the expiration dates thereof. In the event Tenant shall fail to
procure such insurance, or to deliver such policies or certificate, Landlord may, at its option, after written notice to Tenant and Tenant’s failure to obtain such insurance within five (5) days thereafter, procure such policies for the account
of Tenant, and the cost thereof shall be paid to Landlord within thirty (30) days after delivery to Tenant of bills therefor. 
  
 10.5 Subrogation. Landlord and Tenant intend that their respective property loss risks shall be home by reasonable insurance carriers to the
extent above provided, and Landlord and Tenant hereby agree to look solely to, and seek recovery only from, their respective insurance carriers in the event of a property loss to the extent that such coverage is agreed to be provided hereunder. The
parties each hereby waive all rights and claims against each other for such losses, and waive all rights of subrogation of their respective insurers, provided such waiver of subrogation shall not affect the right to the insured to recover
thereunder. The parties agree that their respective insurance policies are now, or shall be, endorsed such that the waiver of subrogation shall not affect the right of the insured to recover thereunder, so long as no material additional premium is
charged therefor. 
  
 10.6 Additional Insurance
Obligations. Tenant shall carry and maintain during the entire Lease Term, at Tenant’s sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 10 and such other
reasonable types of insurance coverage and in such reasonable amounts covering the Premises and Tenant’s operations therein, as may be reasonably requested by Landlord, but in no event in excess of the amounts and types of insurance then being
required by landlords of other Comparable Buildings. 
  
 ARTICLE 11 
  
 DAMAGE AND
DESTRUCTION 
  
 11.1 Repair of Damage to Premises by
Landlord. Tenant shall promptly notify Landlord of any damage to the Premises resulting from fire or any other casualty. If the Premises or any Common Areas serving or providing access to the Premises shall be damaged by fire or other
casualty, Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters beyond Landlord’s reasonable control, and subject to all other terms of this Article 11, restore the Base Building
and such Common Areas. Such restoration shall be to substantially the same condition of the Base Building and the Common Areas prior to the casualty, except for modifications required by zoning and building codes and other laws or by the holder of a
mortgage on the Building or Project or any other modifications to the Common Areas deemed desirable by Landlord, which are consistent with the character of the Project, provided that access to the Premises and any common restrooms serving the
Premises shall not be materially impaired. Upon the occurrence of any damage to the Premises, upon notice (the “Landlord Repair Notice”) to Tenant from Landlord, Tenant shall assign to Landlord (or to any party designated by
Landlord) all insurance proceeds payable to Tenant under Tenant’s insurance required under Section 10.3 of this Lease, and Landlord shall repair any injury or damage to the Tenant Improvements and the Original Improvements installed in
the Premises and shall return such Tenant Improvements and Original Improvements to their original condition; provided that if the cost of such repair by Landlord exceeds the amount of insurance proceeds received by Landlord from Tenant’s
insurance carrier, as assigned by Tenant, the excess cost (i.e., the portion of such cost that exceeds the amount of insurance proceeds) of such repairs shall be paid by Tenant to Landlord prior to Landlord’s commencement of repair of the
damage. Landlord shall not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant’s business resulting in any way from such damage or the repair thereof; provided however, that if such fire or other casualty
shall have damaged the Premises or Common Areas necessary to Tenant’s occupancy, and the Premises are not occupied by Tenant as a result thereof, then during the time and to the extent the Premises are unfit for occupancy, the Rent shall be

  

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 abated in proportion to the ratio that the amount of rentable square feet of the Premises which is unfit for occupancy
for the purposes permitted under this Lease bears to the total rentable square feet of the Premises. 
  
 11.2 Landlord’s Option to Repair. Notwithstanding the terms of Section 11.1 of this Lease, Landlord may elect not to rebuild
and/or restore the Premises, Building and/or Project, and instead terminate this Lease, by notifying Tenant in writing of such termination within thirty (30) days after the date of discovery of the damage, such notice to include a termination date
giving Tenant one hundred twenty (120) days to vacate the Premises, but Landlord may so elect only if the Building or Project shall be damaged by fire or other casualty or cause, whether or not the Premises are affected, and one or more of the
following conditions is present: (i) in Landlord’s reasonable judgment, repairs cannot reasonably be completed within one hundred eighty (180) days after the date of discovery of the damage (when such repairs are made without the payment of
overtime or other premiums); (ii) the holder of any mortgage on the Building or Project or ground lessor with respect to the Building or Project shall require that the insurance proceeds or any portion thereof be used to retire the mortgage debt, or
shall terminate the ground lease, as the case may be; (iii) the damage is not fully covered by Landlord’s insurance policies (excluding deductible amounts); or (iv) the damage occurs during the last twelve (12) months of the Lease Term;
provided, however, that if Landlord does not elect to terminate this Lease pursuant to Landlord’s termination right as provided above, and the repairs cannot, in the reasonable opinion of Landlord, be completed within two hundred seventy (270)
days after being commenced, Tenant may elect, no earlier than sixty (60) days after the date of the damage and not later than ninety (90) days after the date of such damage, to terminate this Lease by written notice to Landlord effective as of the
date specified in the notice, which date shall not be less than thirty (30) days nor more than sixty (60) days after the date such notice is given by Tenant. Furthermore, if neither Landlord nor Tenant has terminated this Lease, and the repairs are
not actually completed within such 270-day period, Tenant shall have the right to terminate this Lease during the first five (5) business days of each calendar month following the end of such period until such time as the repairs are complete, by
notice to Landlord (the “Damage Termination Notice”), effective as of a date set forth in the Damage Termination Notice (the “Damage Termination Date”), which Damage Termination Date shall not be less than ten (10)
business days following the end of each such month. Notwithstanding the foregoing, if Tenant delivers a Damage Termination Notice to Landlord, then Landlord shall have the right to suspend the occurrence of the Damage Termination Date for a period
ending thirty (30) days after the Damage Termination Date set forth in the Damage Termination Notice by delivering to Tenant, within five (5) business days of Landlord’s receipt of the Damage Termination Notice, a certificate of Landlord’s
contractor responsible for the repair of the damage certifying that it is such contractor’s good faith judgment that the repairs shall be substantially completed within thirty (30) days after the Damage Termination Date. If repairs shall be
substantially completed prior to the expiration of such thirty-day period, then the Damage Termination Notice shall be of no force or effect, but if the repairs shall not be substantially completed within such thirty-day period, then this Lease
shall terminate upon the expiration of such thirty-day period. At any time, from time to time, after the date occurring sixty (60) days after the date of the damage, Tenant may request that Landlord inform Tenant of Landlord’s reasonable
opinion of the date of completion of the repairs and Landlord shall respond to such request within five (5) business days. Notwithstanding the provisions of this Section 11.2, Tenant shall have the right to terminate this Lease under this
Section 11.2 only if each of the following conditions is satisfied: (a) the damage to the Project by fire or other casualty was not caused by the gross negligence or intentional act of Tenant or its partners or subpartners and their
respective officers, agents, servants, employees, and independent contractors; (b) Tenant is not then in economic default under this Lease (beyond any applicable notice and cure periods); and (c) as a result of the damage, Tenant cannot, in
Tenant’s reasonable determination, continue to conduct its particular business operations from the Premises. 
  

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 11.3 Waiver of Statutory Provisions. The provisions of this Lease, including this
Article 11, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, the Building or the Project, and any statute or regulation of the State of
California, including, without limitation, Sections 1932(2) and 1933(4) of the California Civil Code, with respect to any rights or obligations concerning damage or destruction in the absence of an express agreement between the parties, and any
other statute or regulation, now or hereafter in effect, shall have no application to this Lease or any damage or destruction to all or any part of the Premises, the Building or the Project. 
  
 ARTICLE 12 
  
 NONWAIVER 
  
 No provision of this Lease shall be deemed waived by either party hereto
unless expressly waived in a writing signed thereby. The waiver by either party hereto of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of same or any other term, covenant
or condition herein contained. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the
particular Rent so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such Rent. No acceptance of a lesser amount than the Rent herein stipulated shall be deemed a waiver of Landlord’s right
to receive the full amount due, nor shall any endorsement or statement on any check or payment or any letter accompanying such check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord’s right to recover the full amount due. No receipt of monies by Landlord from Tenant after the termination of this Lease shall in any way alter the length of the Lease Term or of Tenant’s right of possession hereunder, or after
the giving of any notice shall reinstate, continue or extend the Lease Term or affect any notice given Tenant prior to the receipt of such monies, it being agreed that after the service of notice or the commencement of a suit, or after final
judgment for possession of the Premises, Landlord may receive and collect any Rent due, and the payment of said Rent shall not waive or affect said notice, suit or judgment. 
  
 ARTICLE 13 
  
 CONDEMNATION 
  
 If the whole or any part of the Premises, Building or Project shall be taken by power of eminent domain or condemned by any competent authority for any
public or quasi-public use or purpose, or if any adjacent property or street shall be so taken or condemned, or reconfigured or vacated by such authority in such manner as to require the use, reconstruction or remodeling of any part of the Premises,
Building or Project, or if Landlord shall grant a deed or other instrument in lieu of such taking by eminent domain or condemnation, Landlord shall have the option to terminate this Lease effective as of the date possession is required to be
surrendered to the authority. If more than twenty-five percent (25%) of the rentable square feet of the Premises is taken, or if access to the Premises is substantially impaired, in each case for a period in excess of one hundred eighty (180) days,
Tenant shall have the option to terminate this Lease effective as of the date possession is required to be surrendered to the authority. Tenant shall not because of such taking assert any claim against Landlord or the authority for any compensation
because of such taking and Landlord shall be entitled to the entire award or payment in connection therewith, except that Tenant shall have the right to file any separate claim available to Tenant for any taking of Tenant’s personal property
and fixtures belonging to Tenant and removable by Tenant upon expiration of the Lease Term pursuant to the terms of this Lease, and for moving expenses, so long as such claims do not diminish the award available to Landlord, its ground lessor with
respect to the Building or Project or its 
  

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 mortgagee, and such claim is payable separately to Tenant. All Rent shall be apportioned as of the date of such
termination. If any part of the Premises shall be taken, and this Lease shall not be so terminated, the Rent shall be proportionately abated. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of The
California Code of Civil Procedure. Notwithstanding anything to the contrary contained in this Article 13, in the event of a temporary taking of all or any portion of the Premises for a period of one hundred and eighty (180) days or less,
then this Lease shall not terminate but the Base Rent and the Additional Rent shall be abated for the period of such taking in proportion to the ratio that the amount of rentable square feet of the Premises taken bears to the total rentable square
feet of the Premises. Landlord shall be entitled to receive the entire award made in connection with any such temporary taking. 
  
 ARTICLE 14 
  
 ASSIGNMENT AND SUBLETTING 
  
 14.1 Transfers. Tenant shall not, without the prior written consent of Landlord, assign, mortgage, pledge, hypothecate, encumber, or permit
any lien to attach to, or otherwise transfer, this Lease or any interest hereunder, permit any assignment, or other transfer of this Lease or any interest hereunder by operation of law, sublet the Premises or any part thereof, or enter into any
license or concession agreements or otherwise permit the occupancy or use of the Premises or any part thereof by any persons other than Tenant and its employees and contractors (all of the foregoing are hereinafter sometimes referred to collectively
as “Transfers” and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a “Transferee”). If Tenant desires Landlord’s consent to any Transfer, Tenant shall notify
Landlord in writing, which notice (the “Transfer Notice”) shall include (i) the proposed effective date of the Transfer, which shall not be less than thirty (30) days nor more than one hundred eighty (180) days after the date of
delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the “Subject Space”), (iii) all of the terms of the proposed Transfer and the consideration therefor, including calculation of the
“Transfer Premium”, as that term is defined in Section 14.3 below, in connection with such Transfer, the name and address of the proposed Transferee, and a copy of all existing executed and/or proposed documentation
pertaining to the proposed Transfer, including all existing operative documents to be executed to evidence such Transfer or the agreements incidental or related to such Transfer, provided that Landlord shall have the right to require Tenant to
utilize Landlord’s standard Transfer documents in connection with the documentation of such Transfer, (iv) current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, business credit and personal
references and history of the proposed Transferee and any other information required by Landlord which will enable Landlord to determine the financial responsibility, character, and reputation of the proposed Transferee, nature of such
Transferee’s business and proposed use of the Subject Space and (v) an executed estoppel certificate from Tenant in the form attached hereto as Exhibit E. Any Transfer made without Landlord’s prior written consent shall, at
Landlord’s option, be null, void and of no effect, and shall, at Landlord’s option, constitute a default by Tenant under this Lease. Whether or not Landlord consents to any proposed Transfer, Tenant shall pay Landlord’s review and
processing fees, as well as any reasonable professional fees (including, without limitation, attorneys’, accountants’, architects’, engineers’ and consultants’ fees) incurred by Landlord, within thirty (30) days after
written request by Landlord; provided that such costs and expenses shall not exceed One Thousand Five Hundred and No/100 Dollars ($1,500.00) for a Transfer in the ordinary course of business. Landlord and Tenant hereby agree that a proposed Transfer
shall not be considered “in the ordinary course of business” if such particular proposed Transfer involves the review of documentation by Landlord on more than three (3) occasions. Subject to Landlord’s review and reasonable approval,
Tenant shall have the right to install real estate brokerage signs regarding the subleasing of all or a portion of the Premises. 
  

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 14.2 Landlord’s Consent. Landlord shall not unreasonably withhold its consent to any
proposed Transfer of the Subject Space to the Transferee on the terms specified in the Transfer Notice. Without limitation as to other reasonable grounds for withholding consent, the parties hereby agree that it shall be reasonable under this Lease
and under any applicable law for Landlord to withhold consent to any proposed Transfer where one or more of the following apply: 
  
 14.2.1 The Transferee is of a character or reputation or engaged in a business which is not consistent with the quality of the Building or the Project;

  
 14.2.2 The Transferee intends to use the Subject Space for
purposes which are not permitted under this Lease; 
  
 14.2.3 The
Transferee is either a governmental agency or instrumentality thereof to the extent Landlord reasonably determines the same is not consistent with the quality of the Project as a first-class, institutional quality office project; 
  
 14.2.4 Intentionally omitted; 
  
 14.2.5 The Transferee is not a party of reasonable financial worth and/or
financial stability in light of the responsibilities to be undertaken in connection with the Transfer on the date consent is requested; 
  
 14.2.6 The proposed Transfer would cause a violation of another lease for space in the Project (to the extent Tenant has previously been given notice of
the applicable provision of such other lease(s) and such provision is commercially reasonable), or would give an occupant of the Project a right to cancel its lease (to the extent Tenant has previously been given notice of the applicable provision
of such other lease(s) and such provision is commercially reasonable); 
  
 14.2.7 The terms of the proposed Transfer will allow the Transferee to exercise a right of renewal, right of expansion, right of first offer, or other similar right held by Tenant (or will allow the Transferee to occupy space leased by
Tenant pursuant to any such right); or 
  
 14.2.8 Either the
proposed Transferee, or any person or entity which directly or indirectly, controls, is controlled by, or is under common control with, the proposed Transferee, (i) occupies space in the Project at the time of the request for consent and the Project
is less than ninety-five percent (95%) occupied, or (ii) is negotiating with Landlord to lease space in the Project at such time, or (iii) has negotiated with Landlord during the six (6)-month period immediately preceding the Transfer Notice, and
Landlord has suitable space in the Project for such proposed Transferee. 
  
 If Landlord consents to any Transfer pursuant to the terms of this Section 14.2 (and does not exercise any recapture rights Landlord may have under Section 14.4 of this Lease), Tenant may within six (6)
months after Landlord’s consent, but not later than the expiration of said six-month period, enter into such Transfer of the Premises or portion thereof, upon substantially the same terms and conditions as are set forth in the Transfer Notice
furnished by Tenant to Landlord pursuant to Section 14.1 of this Lease, provided that if there are any changes in the terms and conditions from those specified in the Transfer Notice (i) such that Landlord would initially have been entitled
to refuse its consent to such Transfer under this Section 14.2, or (ii) which would cause the proposed Transfer to be more favorable to the Transferee than the terms set forth in Tenant’s original Transfer Notice, Tenant shall again
submit the Transfer to Landlord for its approval and other action under this Article 14 (including Landlord’s right of recapture, if any, under Section 14.4 of this Lease). Notwithstanding anything to the contrary in this Lease,
if Tenant or any proposed Transferee claims that Landlord has unreasonably withheld or delayed 
  

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 its consent under Section 14.2 or otherwise has breached or acted unreasonably under this Article 14, their
sole remedies shall be a declaratory judgment and an injunction for the relief sought without any monetary damages, and Tenant hereby waives all other remedies, including, without limitation, any right at law or equity to terminate this Lease, on
its own behalf and, to the extent permitted under all applicable laws, on behalf of the proposed Transferee. Tenant shall indemnify, defend and hold harmless Landlord from any and all liability, losses, claims, damages, costs, expenses, causes of
action and proceedings involving any third party or parties (including without limitation Tenant’s proposed subtenant or assignee) who claim they were damaged by Landlord’s wrongful withholding or conditioning of Landlord’s consent.

  
 14.3 Transfer Premium. If Landlord consents to a
Transfer, as a condition thereto which the parties hereby agree is reasonable, Tenant shall pay to Landlord fifty percent (50%) of any “Transfer Premium,” as that term is defined in this Section 14.3, received by Tenant from such
Transferee. “Transfer Premium” shall mean all rent, additional rent or other consideration payable by such Transferee in connection with the Transfer in excess of the Rent and Additional Rent payable by Tenant under this Lease
during the term of the Transfer on a per rentable square foot basis if less than all of the Premises is transferred, after deducting the reasonable expenses incurred by Tenant for (i) any changes, alterations and improvements to the Premises in
connection with the Transfer, (ii) any free base rent reasonably provided to the Transferee, (iii) any brokerage commissions in connection with the Transfer, and (iv) any reasonable attorneys’ fees actually disbursed and other actual and
reasonable out-of-pocket costs. “Transfer Premium” shall also include, but not be limited to, key money, bonus money or other cash consideration paid by Transferee to Tenant in connection with such Transfer, and any payment in excess of
fair market value for services rendered by Tenant to Transferee or for assets, fixtures, inventory, equipment, or furniture transferred by Tenant to Transferee in connection with such Transfer. In the calculations of the Rent (as it relates to the
Transfer Premium calculated under this Section 14.3), and the Transferee’s Rent and Quoted Rent under Section 14.2 of this Lease, the Rent paid during each annual period for the Subject Space, and the Transferee’s Rent and
the Quoted Rent, shall be computed after adjusting such rent to the actual effective rent to be paid, taking into consideration any and all leasehold concessions granted in connection therewith, including, but not limited to, any rent credit and
tenant improvement allowance. For purposes of calculating any such effective rent all such concessions shall be amortized on a straight-line basis over the relevant term. 
  
 14.4 Landlord’s Option as to Subject Space. In the event that a proposed Transfer, if consented to, would
cause fifty percent (50%) or more of the Premises to be subleased to a party other than Original Tenant and/or its Affiliates, then notwithstanding anything to the contrary contained in this Article 14, Landlord shall have the option, by
giving written notice to Tenant within thirty (30) days after receipt of any Transfer Notice, to recapture the Subject Space. Such recapture notice shall cancel and terminate this Lease with respect to the Subject Space as of the date stated in the
Transfer Notice as the effective date of the proposed Transfer until the last day of the term of the Transfer as set forth in the Transfer Notice (or at Landlord’s option, shall cause the Transfer to be made to Landlord or its agent, in which
case the parties shall execute the Transfer documentation promptly thereafter). In the event of a recapture by Landlord, if this Lease shall be canceled with respect to less than the entire Premises, the Rent reserved herein shall be prorated on the
basis of the number of rentable square feet retained by Tenant in proportion to the number of rentable square feet contained in the Premises, and this Lease as so amended shall continue thereafter in full force and effect, and upon request of either
party, the parties shall execute written confirmation of the same. If Landlord declines, or fails to elect in a timely manner to recapture the Subject Space under this Section 14.4, then, provided Landlord has consented to the proposed
Transfer, Tenant shall be entitled to proceed to transfer the Subject Space to the proposed Transferee, subject to provisions of this Article 14. 
  

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 14.5 Effect of Transfer. If Landlord consents to a Transfer, (i) the TCCs of this Lease
shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed consent to any further Transfer by either Tenant or a Transferee, (iii) Tenant shall deliver to Landlord, promptly after execution, an original executed
copy of all documentation pertaining to the Transfer in form reasonably acceptable to Landlord, (iv) Tenant shall furnish upon Landlord’s request a complete statement, certified by an independent certified public accountant, or Tenant’s
chief financial officer, setting forth in detail the computation of any Transfer Premium Tenant has derived and shall derive from such Transfer, and (v) no Transfer relating to this Lease or agreement entered into with respect thereto, whether with
or without Landlord’s consent, shall relieve Tenant or any guarantor of the Lease from any liability under this Lease, including, without limitation, in connection with the Subject Space. Landlord or its authorized representatives shall have
the right at all reasonable times, but not more often than once per calendar year (unless Tenant is in default beyond any applicable notice and cure period in which event no annual limitation shall apply), to audit the books, records and papers of
Tenant relating to any Transfer, and shall have the right to make copies thereof. If the Transfer Premium respecting any Transfer shall be found understated, Tenant shall, within thirty (30) days after demand, pay the deficiency, and if understated
by more than two percent (2%), Tenant shall pay Landlord’s costs of such audit. 
  
 14.6 Additional Transfers. For purposes of this Lease, the term “Transfer” shall also include (i) if Tenant is a partnership, the withdrawal or change, voluntary, involuntary or by
operation of law, of fifty percent (50%) or more of the partners, or transfer of fifty percent (50%) or more of partnership interests, within a twelve (12)-month period, or the dissolution of the partnership without immediate reconstitution thereof,
and (ii) if Tenant is a closely held corporation (i.e., whose stock is not publicly held and not traded through an exchange or over the counter), (A) the dissolution, merger, consolidation or other reorganization of Tenant or (B) the sale or
other transfer of an aggregate of fifty percent (50%) or more of the voting shares of Tenant (other than to immediate family members by reason of gift or death), within a twelve (12)-month period, or (C) the sale, mortgage, hypothecation or pledge
of an aggregate of fifty percent (50%) or more of the value of the unencumbered assets of Tenant within a twelve (12)-month period; provided, however, in no event shall Tenant’s purchase or sale of inventory in accordance with its customary
business practices constitute a sale, mortgage, hypothecation or pledge pursuant to the TCCs of this Section 14.6(C). 
  
 14.7 Occurrence of Default. Any Transfer hereunder shall be subordinate and subject to the provisions of this Lease, and if this Lease shall
be terminated during the term of any Transfer, Landlord shall have the right to: (i) treat such Transfer as canceled and repossess the Subject Space by any lawful means, or (ii) require that such Transferee attorn to and recognize Landlord as its
landlord under any such Transfer. If Tenant shall be in default under this Lease, Landlord is hereby irrevocably authorized, as Tenant’s agent and attorney-in-fact, to direct any Transferee to make all payments under or in connection with the
Transfer directly to Landlord (which Landlord shall apply towards Tenant’s obligations under this Lease) until such default is cured. Such Transferee shall rely on any representation by Landlord that Tenant is in default hereunder, without any
need for confirmation thereof by Tenant. Upon any assignment, the assignee shall assume in writing all obligations and covenants of Tenant thereafter to be performed or observed under this Lease. No collection or acceptance of rent by Landlord from
any Transferee shall be deemed a waiver of any provision of this Article 14 or the approval of any Transferee or a release of Tenant from any obligation under this Lease, whether theretofore or thereafter accruing. In no event shall
Landlord’s enforcement of any provision of this Lease against any Transferee be deemed a waiver of Landlord’s right to enforce any term of this Lease against Tenant or any other person. If Tenant’s obligations hereunder have been
guaranteed, Landlord’s consent to any Transfer shall not be effective unless the guarantor also consents to such Transfer. 
  
 14.8 Non-Transfers. Notwithstanding anything to the contrary contained in this Article 14, (i) an assignment or subletting of all or
a portion of the Premises to an affiliate of Tenant (an entity which 
  

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 is controlled by, controls, or is under common control with, Tenant), (ii) an assignment of the Premises to an entity
which acquires all or substantially all of the assets or interests (partnership, stock or other) of Tenant, or (iii) an assignment of the Premises to an entity which is the resulting entity of a merger or consolidation of Tenant, shall not be deemed
a Transfer under this Article 14, provided that Tenant notifies Landlord of any such assignment or sublease and promptly supplies Landlord with any documents or information reasonably requested by Landlord regarding such assignment or
sublease or such affiliate, and further provided that such assignment or sublease is not a subterfuge by Tenant to avoid its obligations under this Lease. The transferee under a transfer specified in items (i), (ii) or (iii) above shall be referred
to as a “Permitted Transferee.” “Control,” as used in this Section 14.8, shall mean the ownership, directly or indirectly, of at least fifty-one percent (51%) of the voting securities of, or possession of the
right to vote, in the ordinary direction of its affairs, of at least fifty-one percent (51%) of the voting interest in, any person or entity. 
  
 ARTICLE 15 
  
 SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL OF TRADE FIXTURES 
  
 15.1 Surrender of Premises. No act or thing done by Landlord or any agent or employee of Landlord during the
Lease Term shall be deemed to constitute an acceptance by Landlord of a surrender of the Premises unless such intent is specifically acknowledged in writing by Landlord. The delivery of keys to the Premises to Landlord or any agent or employee of
Landlord shall not constitute a surrender of the Premises or effect a termination of this Lease, whether or not the keys are thereafter retained by Landlord, and notwithstanding such delivery Tenant shall be entitled to the return of such keys at
any reasonable time upon request until this Lease shall have been properly terminated. The voluntary or other surrender of this Lease by Tenant, whether accepted by Landlord or not, or a mutual termination hereof, shall not work a merger, and at the
option of Landlord shall operate as an assignment to Landlord of all subleases or subtenancies affecting the Premises or terminate any or all such sublessees or subtenancies. 
  
 15.2 Removal of Tenant Property by Tenant. Upon the expiration of the Lease Term, or upon any earlier
termination of this Lease, Tenant shall, subject to the provisions of this Article 15, quit and surrender possession of the Premises to Landlord in as good order and condition as when Tenant took possession and as thereafter improved by
Landlord and/or Tenant, reasonable wear and tear and repairs which are specifically made the responsibility of Landlord hereunder excepted. Upon such expiration or termination, Tenant shall, without expense to Landlord, remove or cause to be removed
from the Premises all debris and rubbish, and such items of furniture, equipment, business and trade fixtures, free-standing cabinet work, movable partitions and other articles of personal property owned by Tenant or installed or placed by Tenant at
its expense in the Premises, and such similar articles of any other persons claiming under Tenant, as Landlord may, in its reasonable discretion, require to be removed, and Tenant shall repair at its own expense all damage to the Premises and
Building resulting from such removal. 
  
 ARTICLE 16

  
 HOLDING OVER 
  
 If Tenant holds over after the expiration of the Lease Term or earlier
termination thereof, with or without the express or implied consent of Landlord, such tenancy shall be from month-to-month only, and shall not constitute a renewal hereof or an extension for any further term, and in such case Rent shall be payable
at a monthly rate equal to one hundred and fifty percent (150%) of the Rent applicable during the last rental period of the Lease Term under this Lease. Such month-to-month tenancy shall be subject to every other applicable term, covenant and
agreement contained herein. Notwithstanding the foregoing, Tenant shall have the one-time right, upon notice (the “Holdover Notice”) to Landlord not less than 
  

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 twelve (12) months prior to the expiration of the then Lease Term, to extend the Lease Term for a period of up to three
(3) months (the “Permitted Holdover Term”), in which case the Rent payable by Tenant during such Permitted Holdover Term shall equal one hundred twenty percent (120%) of the Rent applicable during the last rental period of the Lease
Term under this Lease. Nothing contained in this Article 16 shall be construed as consent by Landlord to any holding over by Tenant, and Landlord expressly reserves the right to require Tenant to surrender possession of the Premises to
Landlord as provided in this Lease upon the expiration or other termination of this Lease. The provisions of this Article 16 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at
law. If Tenant fails to surrender the Premises upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss,
costs (including reasonable attorneys’ fees) and liability resulting from such failure, including, without limiting the generality of the foregoing, any claims made by any succeeding tenant founded upon such failure to surrender and any lost
profits to Landlord resulting therefrom. 
  
 ARTICLE 17

  
 ESTOPPEL CERTIFICATES 
  
 Within ten (10) days following a request in writing by Landlord, Tenant shall
execute, acknowledge and deliver to Landlord an estoppel certificate, which, as submitted by Landlord, shall be substantially in the form of Exhibit E, attached hereto (or such other form as may be required by any prospective mortgagee
or purchaser of the Project, or any portion thereof), indicating therein any exceptions thereto that may exist at that time, and shall also contain any other information reasonably requested by Landlord or Landlord’s mortgagee or prospective
mortgagee. Any such certificate may be relied upon by any prospective mortgagee or purchaser of all or any portion of the Project. Tenant shall execute and deliver whatever other instruments may be reasonably required for such purposes. At any time
during the Lease Term, Landlord may require Tenant to provide Landlord with a current financial statement and financial statements of the two (2) years prior to the current financial statement year. Such statements shall be prepared in accordance
with generally accepted accounting principles and, if such is the normal practice of Tenant, shall be audited by an independent certified public accountant. Failure of Tenant to timely execute, acknowledge and deliver such estoppel certificate or
other instruments shall constitute an acceptance of the Premises and an acknowledgment by Tenant that statements included in the estoppel certificate are true and correct, without exception. Landlord hereby agrees to provide to Tenant an estoppel
certificate signed by Landlord, containing the same types of information, and within the same periods of time, as set forth above, with such changes as are reasonably necessary to reflect that the estoppel certificate is being granted and signed by
Landlord to Tenant, rather than from Tenant to Landlord or a lender. 
  
 ARTICLE 18 
  
 SUBORDINATION

  
 Landlord covenants that there is no existing deed of trust
or mortgage or leasehold interest encumbering the Premises. Notwithstanding the foregoing, this Lease shall be subject and subordinate to all future ground or underlying leases of the Building or Project and to the lien of any mortgage, trust deed
or other encumbrances now or hereafter in force against the Building or Project or any part thereof, if any, and to all renewals, extensions, modifications, consolidations and replacements thereof, and to all advances made or hereafter to be made
upon the security of such mortgages or trust deeds, unless the holders of such mortgages, trust deeds or other encumbrances, or the lessors under such ground lease or underlying leases, require in writing that this Lease be superior thereto.
Landlord’s delivery to Tenant of 
  

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 commercially reasonable non-disturbance agreement(s) (the “Nondisturbance Agreement”) substantially in
the form of Exhibit L, attached hereto, in favor of Tenant from any ground lessor, mortgage holders or lien holders of Landlord who later come into existence at any time prior to the expiration of the Lease Term shall be in
consideration of, and a condition precedent to, Tenant’s agreement to be bound by the TCCs of this Article 18. Subject to Tenant’s receipt of such a Nondisturbance Agreement, Tenant covenants and agrees in the event any proceedings
are brought for the foreclosure of any such mortgage or deed in lieu thereof (or if any ground lease is terminated), to attorn, without any deductions or set-offs whatsoever, to the lienholder or purchaser or any successors thereto upon any such
foreclosure sale or deed in lieu thereof (or to the ground lessor), if so requested to do so by such purchaser or lienholder or ground lessor, and to recognize such purchaser or lienholder or ground lessor as the lessor under this Lease, provided
such lienholder or purchaser or ground lessor shall agree to accept this Lease and not disturb Tenant’s occupancy, so long as Tenant timely pays the rent and observes and performs the TCCs of this Lease to be observed and performed by Tenant.
Landlord’s interest herein may be assigned as security at any time to any lienholder. Tenant shall, within five (5) business days of request by Landlord, execute such further reasonable instruments or assurances as Landlord may reasonably deem
necessary to evidence or confirm the subordination or superiority of this Lease to any such mortgages, trust deeds, ground leases or underlying leases. Tenant waives the provisions of any current or future statute, rule or law which may give or
purport to give Tenant any right or election to terminate or otherwise adversely affect this Lease and the obligations of the Tenant hereunder in the event of any foreclosure proceeding or sale. 
  
 ARTICLE 19 
  
 DEFAULTS; REMEDIES 
  
 19.1 Events of Default. The occurrence of any of the following
shall constitute a default of this Lease by Tenant: 
  
 19.1.1
Any failure by Tenant to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, when due unless such failure is cured within five (5) days following Tenant’s receipt of written notice that the same was not
paid when due; or 
  
 19.1.2 Except where a specific time period
is otherwise set forth for Tenant’s performance in this Lease, in which event the failure to perform by Tenant within such time period shall be a default by Tenant under this Section 19.1.2, any failure by Tenant to observe or perform
any other provision, covenant or condition of this Lease to be observed or performed by Tenant where such failure continues for thirty (30) days after written notice thereof from Landlord to Tenant; provided that if the nature of such default is
such that the same cannot reasonably be cured within a thirty (30) day period, Tenant shall not be deemed to be in default if it diligently commences such cure within such period and thereafter diligently proceeds to rectify and cure such default,
but in no event exceeding a period of time in excess of forty-five (45) days after written notice thereof from Landlord to Tenant; or 
  
 19.1.3 To the extent permitted by law, a general assignment by Tenant or any guarantor of this Lease for the benefit of creditors, or the taking of any
corporate action in furtherance of bankruptcy or dissolution whether or not there exists any proceeding under an insolvency or bankruptcy law, or the filing by or against Tenant or any guarantor of any proceeding under an insolvency or bankruptcy
law, unless in the case of a proceeding filed against Tenant or any guarantor the same is dismissed within sixty (60) days, or the appointment of a trustee or receiver to take possession of all or substantially all of the assets of Tenant or any
guarantor, unless possession is restored to Tenant or such guarantor within thirty (30) days, or any execution or other judicially authorized seizure of all or substantially all of Tenant’s assets located upon the Premises or of Tenant’s
interest in this Lease, unless such seizure is discharged within thirty (30) days; or 
  

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 19.1.4 Abandonment or vacation of all or a substantial portion of the Premises by Tenant without payment
of Rent; or 
  
 19.1.5 The failure by Tenant to observe or perform
according to the provisions of Sections 5.1, 5.2 and 14.2 and/or Articles 17 or 18 of this Lease where such failure continues for more than five (5) business days after notice from Landlord. 
  
 The notice periods provided herein are in lieu of, and not in addition to,
any notice periods provided by law. 
  
 19.2 Remedies Upon
Default. Upon the occurrence of any event of default by Tenant, Landlord shall have, in addition to any other remedies available to Landlord at law or in equity (all of which remedies shall be distinct, separate and cumulative), the option
to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever. 
  
 19.2.1 Terminate this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may,
without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any part thereof,
without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant the following: 
  
 (a) The worth at the time of award of any unpaid rent which has been earned at the time of such termination; plus 
  
 (b) The worth at the time of award of the amount by which the unpaid rent
which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided, plus 
  
 (c) The worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the time
of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 
  
 (d) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under
this Lease or which in the ordinary course of things would be likely to result therefrom, specifically including but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the Premises or any portion thereof
for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; and 
  
 (e) At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law.

  
 The term “rent” as used in this Section
19.2 shall be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in Sections 19.2. (a) and (b), above, the “worth at the time
of award” shall be computed by allowing interest at the Interest Rate, but in no case greater than the maximum amount of such interest 
  

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 permitted by law. As used in Section 19.2.1(c), above, the “worth at the time of award” shall be
computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 
  
 19.2.2 Landlord shall have the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee’s breach
and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations). Accordingly, if Landlord does not elect to terminate this Lease on account of any default by Tenant, Landlord
may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover all rent as it becomes due. 
  
 19.2.3 Landlord shall at all times have the rights and remedies (which shall be cumulative with each other and cumulative
and in addition to those rights and remedies available under Sections 19.2.1 and 19.2.2, above, or any law or other provision of this Lease), without prior demand or notice except as required by applicable law, to seek any declaratory,
injunctive or other equitable relief, and specifically enforce this Lease, or restrain or enjoin a violation or breach of any provision hereof. 
  
 19.3 Subleases of Tenant. In the event Landlord elects to terminate this Lease on account of any default by Tenant, as set forth in this
Article 19, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in Landlord’s sole discretion,
succeed to Tenant’s interest in such subleases, licenses, concessions or arrangements. In the event of Landlord’s election to succeed to Tenant’s interest in any such subleases, licenses, concessions or arrangements, Tenant shall, as
of the date of notice by Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder. 
  
 19.4 Form of Payment After Default. Following the occurrence of an event of monetary default by Tenant, Landlord shall have the right to
require that any or all subsequent amounts paid by Tenant to Landlord hereunder, whether to cure the default in question or otherwise, be paid in the form of money order, cashier’s check drawn on an institution acceptable to Landlord, or by
other means approved by Landlord, notwithstanding any prior practice of accepting payments in any different form. 
  
 19.5 Efforts to Relet. No re-entry or repossession, repairs, maintenance, changes, alterations and additions, reletting, appointment of a
receiver to protect Landlord’s interests hereunder, or any other action or omission by Landlord shall be construed as an election by Landlord to terminate this Lease or Tenant’s right to possession, or to accept a surrender of the
Premises, nor shall same operate to release Tenant in whole or in part from any of Tenant’s obligations hereunder, unless express written notice of such intention is sent by Landlord to Tenant. Tenant hereby irrevocably waives any right
otherwise available under any law to redeem or reinstate this Lease. 
  
 19.6 Landlord Default. Notwithstanding anything to the contrary set forth in this Lease, Landlord shall be in default in the performance of any obligation required to be performed by Landlord pursuant to this Lease if Landlord
fails to perform such obligation within thirty (30) days after the receipt of notice from Tenant specifying in detail Landlord’s failure to perform; provided, however, if the nature of Landlord’s obligation is such that more than thirty
(30) days are required for its performance, then Landlord shall not be in default under this Lease if it shall commence such performance within such thirty (30) day period and thereafter diligently pursues the same to completion. Upon any such
default by Landlord under this Lease, Tenant may, except as otherwise specifically provided in this Lease to the contrary, exercise any of its rights provided at law or in equity. Any award from a court or arbitrator in favor of Tenant requiring
payment by Landlord which is not paid by Landlord within the time period directed by such award, may be offset by Tenant from Rent next due and payable under this Lease; 
  

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 provided, however, Tenant may not deduct the amount of the award against more than fifty percent (50%) of Base Rent next
due and owing (until such time as the entire amount of such judgment is deducted) to the extent following a foreclosure or a deed-in-lieu of foreclosure. 
  
 ARTICLE 20 
  
 COVENANT OF QUIET ENJOYMENT 
  
 Landlord covenants that Tenant, on paying the Rent, charges for services and other payments herein reserved and on keeping, observing and performing all
the other TCCs, provisions and agreements herein contained on the part of Tenant to be kept, observed and performed, shall, during the Lease Term, peaceably and quietly have, hold and enjoy the Premises subject to the TCCs, provisions and agreements
hereof without interference by any persons lawfully claiming by or through Landlord. The foregoing covenant is in lieu of any other covenant express or implied. 
  

ARTICLE 21 
  
 SECURITY DEPOSIT; LETTER OF CREDIT 
  
 21.1 Security Deposit. Concurrent with Tenant’s execution of this Lease, Tenant shall deposit with Landlord a security deposit (the
“Security Deposit”) in the amount set forth in Section 8 of the Summary, as security for the faithful performance by Tenant of all of its obligations under this Lease. If Tenant defaults with respect to any provisions of this
Lease, including, but not limited to, the provisions relating to the payment of Rent, the removal of property and the repair of resultant damage, Landlord may, without notice to Tenant, but shall not be required to apply all or any part of the
Security Deposit for the payment of any Rent or any other sum in default and Tenant shall, upon demand therefor, restore the Security Deposit to its original amount. Any unapplied portion of the Security Deposit shall be returned to Tenant, or, at
Tenant’s request, to the last assignee of Tenant’s interest hereunder, within forty-five (45) days following the expiration of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby waives the
provisions of Section 1950.7(C) of the California Civil Code, or any successor statute. 
  
 21.2 Letter of Credit. 
  
 21.2.1 Delivery of Letter of Credit. Unless the conditions of Section 21.2.2.2 below are then being satisfied, Tenant shall deliver to Landlord, concurrently with the mutual execution of this Lease, an unconditional,
clean, irrevocable letter of credit (the “L-C”) in an amount equal to ***, which L-C shall be issued by a money-center bank (a bank which accepts deposits, maintains accounts, has a local California office which will
negotiate a letter of credit, and whose deposits are insured by the FDIC) reasonably acceptable to Landlord, and which L-C shall be in the form of Exhibit H, attached hereto. Tenant shall pay all expenses, points and/or fees incurred
by Tenant in obtaining the L-C. 
  
 21.2.2 L-C
Amount. 
  
 21.2.2.1 Calculation of L-C
Amount. For purposes of this Lease, the “L-C Amount” shall be, at any and all times during the Lease Term, an amount equal to twelve (12) months of the then-current Monthly Installment of Base Rent. 
  

	***	Material has been omitted pursuant to a request for confidential treatment. 

  

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 21.2.2.2 Conditional Increase/Reduction of L-C Amount. Landlord and Tenant hereby
acknowledge and agree that the L-C Amount is subject to increase and reduction throughout the Lease Term at the end of each financial quarter as set forth in this Section 21.2.2. The starting L-C Amount shall be determined pursuant to the
calculation set forth in Section 21.2.2.1, above, as of the close of the financial quarter ended June 30, 2002; provided, however, Tenant shall not be required to initially deliver such L-C to the extent Tenant is maintaining, as of the
effective date of this Lease and as of the Commencement Date, the “Required Thresholds,” as that term is set forth in Section 21.2.3. Thereafter, and throughout the Lease Term, (i) to the extent that Tenant maintains (and continues
to maintain) the Required Thresholds for four (4) consecutive financial quarters, the then-determined L-C Amount shall be reduced by fifty percent (50%), (ii) to the extent that Tenant maintains (and continues to maintain) the Required Thresholds
for eight (8) consecutive financial quarters, the then-determined L-C Amount shall be reduced to $0.00, (iii) to the extent Tenant maintains the Required Thresholds and the Guarantor maintains a “Market Capitalization,” as that term is set
forth in Section 21.2.3, below, of no less than One Billion Dollars ($1,000,000,000.00), the then-determined L-C Amount shall be reduced to $0.00, and (iv) to the extent that Tenant is no longer maintaining the Required Thresholds (and, if
applicable, Guarantor is no longer maintaining a Market Capitalization of One Billion Dollars), the L-C Amount shall be recalculated pursuant to Section 2l.2.1 based on the Market Capitalization and Working Capital as of the completion of
such quarter and the L-C shall immediately be reissued in the “Required L-C Amount”. In the event that such recalculated L-C Amount (at any given time during the Lease Term, the “Required L-C Amount”), is less than the
then-current L-C Amount, Tenant shall have the right to cause the L-C Amount to be reduced to the Required L-C Amount, and Landlord shall timely execute and deliver such commercially reasonable documents to the issuer(s) of the L-C as are presented
to Landlord by such issuer(s) and as may be reasonably necessary to effectuate the change to the Required L-C Amount; provided, however, that to the extent Landlord has assigned such L-C, Landlord shall use its commercially reasonable efforts to
cooperate with Tenant to effectuate the change. Likewise, following the completion of each financial quarter throughout the Lease Term, in the event that the Required L-C Amount is greater than the their current L-C Amount, Tenant shall upon its
receipt of written notice from Landlord (the “Reestablishment Notice”), cause the L-C Amount to be increased to equal the Required L-C Amount. In addition, in the event that, following the completion of each financial quarter
throughout the Lease Term (A) Tenant has failed to satisfy the Required Thresholds and, if applicable, a Market Capitalization of One Billion Dollars, (B) Tenant fails to timely deliver the unaudited quarterly financial statements, or the annual
audited financial statements required for Tenant to make a determination with regard to such Required Thresholds, or (C) Tenant is in economic default under the Lease (beyond any applicable notice and cure periods), then Tenant shall, upon receipt
of a Reestablishment Notice, cause the L-C to be reestablished with the Required L-C Amount. 
  
 21.2.3 Definitions. For purposes of this Section 21.2, “Net Worth” shall be determined in accordance with generally accepted accounting principles. For purposes of
“Working Capital,” means then-current assets of Tenant less then-current liabilities from Tenant’s previous audited quarterly financial statements, which Working Capital shall include then-current receivables (zero (0) to
ninety (90) days only, and excluding any bad debt allowances). For purposes of this Section 21.2, the “Required Thresholds “ shall mean both (i) a Net Worth of no less than Seventy-Five Million and No/100 Dollars
($75,000,000.00), and (ii) Working Capital of no less than One Hundred Million and No/100 Dollars ($100,000,000.00). For purposes of this Section 2l.2, “Market Capitalization” means the product of (1) the
number of outstanding shares of Guarantor on the last day of the applicable financial quarter (i.e., the most recently completed quarter), and (2) the average closing share price during the last thirty (30) calendar days of the applicable financial
quarter. 
  
 21.2.4 FAILURE TO REINSTATE; LIQUIDATED
DAMAGES. IN THE EVENT THAT TENANT FAILS, WITHIN TEN (10) DAYS FOLLOWING TENANT’S RECEIPT OF A REESTABLISHMENT NOTICE (WHICH TEN (10) DAY PERIOD SHALL BE INCREASED UP TO 
  

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 A TOTAL OF THIRTY (30) DAYS TO THE EXTENT SUCH REESTABLISHMENT IS PREVENTED DUE TO FORCE MAJEURE), TO CAUSE THE L-C TO BE
REESTABLISHED IN THE L-C AMOUNT, THEN TENANT’S MONTHLY INSTALLMENT OF BASE RENT SHALL BE INCREASED BY ONE HUNDRED FIFTY PERCENT (150%) OF ITS THEN EXISTING LEVEL DURING THE PERIOD COMMENCING ON THE DATE WHICH IS TEN (10) DAYS AFTER
TENANT’S RECEIPT OF SUCH REESTABLISHMENT NOTICE AND ENDING ON THE EARLIER TO OCCUR OF (I) THE DATE SUCH L-C IS REESTABLISHED PURSUANT TO THE TERMS OF THIS SECTION 21.2, OR (II) THE DATE WHICH IS NINETY (90) DAYS AFTER THE DATE OF SUCH
REESTABLISHMENT NOTICE. IN THE EVENT THAT TENANT FAILS, DURING SUCH NINETY (90)-DAY PERIOD FOLLOWING THE DATE OF THE REESTABLISHMENT NOTICE, TO CAUSE THE L-C TO BE REESTABLISHED IN THE L-C AMOUNT, THEN TENANT’S MONTHLY INSTALLMENT OF BASE RENT
SHALL BE INCREASED BY TWO HUNDRED PERCENT (200%) OF ITS THEN EXISTING LEVEL DURING THE PERIOD COMMENCING ON THE DATE WHICH IS NINETY (90) DAYS AFTER THE DATE OF SUCH REESTABLISHMENT NOTICE AND ENDING ON THE DATE SUCH L-C IS RE-ISSUED/REESTABLISHED
PURSUANT TO THE TERMS OF THIS SECTION 21.2. THE PARTIES AGREE THAT IT WOULD BE IMPRACTICABLE AND EXTREMELY DIFFICULT TO ASCERTAIN THE ACTUAL DAMAGES SUFFERED BY LANDLORD AS A RESULT OF TENANT’S FAILURE TO TIMELY REESTABLISH THE L-C
FOLLOWING THE REESTABLISHMENT NOTICE AS REQUIRED IN THIS SECTION 21.2, AND THAT UNDER THE CIRCUMSTANCES EXISTING AS OF THE DATE OF THIS LEASE, THE LIQUIDATED DAMAGES PROVIDED FOR IN THIS SECTION 21.2.4 REPRESENT A REASONABLE ESTIMATE
OF THE DAMAGES WHICH LANDLORD WILL INCUR AS A RESULT OF SUCH FAILURE, PROVIDED, HOWEVER, THAT THIS PROVISION SHALL NOT WAIVE OR AFFECT LANDLORD’S RIGHTS AND TENANT’S INDEMNITY OBLIGATIONS UNDER OTHER SECTIONS OF THIS LEASE (EXCEPT THAT THE
PARTIES SPECIFICALLY AGREE THAT THE FOREGOING PROVISION WAS AGREED TO IN LIEU OF MAKING FAILURE TO RE-ESTABLISH THE L-C A DEFAULT UNDER THE LEASE). THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF SUCH LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE
OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTION 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO LANDLORD PURSUANT TO CALIFORNIA CIVIL CODE SECTION 1671. THE PARTIES HAVE SET FORTH THEIR INITIALS BELOW TO INDICATE
THEIR AGREEMENT WITH THE LIQUIDATED DAMAGES PROVISION CONTAINED IN THIS SECTION 21.2.4. 
  

			
	
	 	

	LANDLORD’S INITIALS	 	TENANT’S INITIALS

  
 21.2.5
Application of Letter of Credit. To the extent Tenant is required to post the L-C pursuant to the terms and conditions of this Lease, such L-C shall be held by Landlord as security for the faithful performance by Tenant of all the TCCs
of this Lease to be kept and performed by Tenant during the Lease Term. The L-C shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant without the prior written consent of Landlord. If Tenant defaults with respect to any
provisions of this Lease, including, but not limited to, the provisions relating to the payment of Rent, or if Tenant fails to renew the L-C at least thirty (30) days before its expiration, Landlord may, but shall not be required to, draw upon all
or any portion of the L-C for payment of any Rent or any other sum in default, or for the payment of any amount that Landlord may reasonably spend or may become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any
other loss or damage that Landlord may suffer by reason of Tenant’s default. The use, application or retention of the L-C, or any 
  

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 portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease
or by law, it being intended that Landlord shall not first be required to proceed against the L-C and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Any amount of the L-C which is drawn upon by
Landlord, but is not used or applied by Landlord, shall be held by Landlord and deemed a security deposit (the “L-C Security Deposit”) and, in connection with such L-C Security Deposit, Tenant hereby waives the provisions of Section
1950.7(C) of the California Civil Code, or any successor statute. If any portion of the L-C is drawn upon, Tenant shall, within ten (10) days after written demand therefor, either (i) deposit cash with Landlord (which cash shall be applied by
Landlord to the L-C Security Deposit) in an amount sufficient to cause the sum of the L-C Security Deposit and the amount of the remaining L-C to be equivalent to the amount of the L-C then required under this Lease or (ii) reinstate the L-C to the
amount then required under this Lease, and if any portion of the L-C Security Deposit is used or applied, Tenant shall, within ten (10) days after written demand therefor, deposit cash with Landlord (which cash shall be applied by Landlord to the
L-C Security Deposit) in an amount sufficient to restore the L-C Security Deposit to the amount then required under this Lease, and Tenant’s failure to do so shall be a default under this Lease; provided, however, that upon Tenant’s
satisfaction of its economic obligations and restoration of the L-C Security Deposit pursuant to this sentence, any unused portion of the drawn upon funds shall be returned to Tenant. Tenant acknowledges that Landlord has the right to transfer or
mortgage its interest in the Project and in this Lease and Tenant agrees that in the event of any such transfer or mortgage, Landlord shall have the right to transfer or assign the L-C Security Deposit and/or the L-C to the transferee or mortgagee,
and in the event of such transfer, Tenant shall look solely to such transferee or mortgagee for the return of the L-C Security Deposit and/or the L-C. Landlord shall pay all costs associated with the transfer or re-issuance of the L-C due to
Landlord’s transfer or assignment. Tenant shall, within five (5) days of request by Landlord, execute such further instruments or assurances as Landlord may reasonably deem necessary to evidence or confirm Landlord’s transfer or assignment
of the L-C Security Deposit and/or the L-C to such transferee or mortgagee. If Tenant is not then in default under this Lease, the L-C Security Deposit and/or the L-C, or any balance thereof, shall be returned to Tenant within thirty (30) days
following the expiration of the Lease Term; provided, however, that to the extent Landlord has assigned such L-C, Landlord shall use its commercially reasonable efforts to cooperate with Tenant to have the same timely returned to Tenant. 

 
 ARTICLE 22 
  
 TELECOMMUNICATIONS EQUIPMENT 
  
 At any time during the Lease Term, subject to the TCCs of this Article
22 and Article 8 of this Lease, Tenant may install, at Tenant’s sole cost and expense, but without the payment of any Rent or a license or similar fee or charge, up to (i) one (1) eight foot (8’)-satellite dish, (ii) three (3)
eighteen inch (18”) to twenty-four inch (24”) satellite dishes, (iii) three (3) twenty-four inch (24”) microwave antennae, and/or other communications, HVAC or other equipment servicing the business conducted by Tenant from within the
Premises (all such equipment, including non-telecommunication equipment is, for the sake of convenience, defined collectively as the “Telecommunications Equipment”) upon the roof of the Building. The physical appearance and the size
of the Telecommunications Equipment shall be subject to Landlord’s reasonable approval, the location of any such installation of the Telecommunications Equipment shall be designated by Tenant subject to Landlord’s reasonable approval and
Landlord may require Tenant to install screening around such Telecommunications Equipment, at Tenant’s sole cost and expense, as reasonably designated by Landlord. Tenant shall maintain such Telecommunications Equipment, at Tenant’s sole
cost and expense. In the event Tenant elects to exercise its right to install the Telecommunication Equipment, then Tenant shall give Landlord prior notice thereof. Tenant shall reimburse to Landlord the actual costs reasonably incurred by Landlord
in approving such Telecommunications Equipment, provided, however, such reimbursement shall not 
  

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 exceed Five Hundred and No/100 Dollars ($500.00) per approval. Tenant shall remove such Telecommunications Equipment upon
the expiration or earlier termination of this Lease and shall return the affected portion of the rooftop and the Building to the condition the rooftop and the Building would have been in had no such Telecommunications Equipment been installed
(reasonable wear and tear accepted). Such Telecommunications Equipment shall be installed pursuant to plans and specifications approved by Landlord, which approval will not be unreasonably withheld, conditioned, or delayed. Such Telecommunications
Equipment shall, in all instances, comply with applicable governmental laws, codes, rules and regulations. Tenant shall not be entitled to license its Communication Equipment to any unrelated third party, nor shall Tenant be permitted to receive any
revenues, fees or any other consideration for the use of such Communication Equipment by an unrelated third party. Tenant’s right to install such Telecommunication Equipment shall be non-exclusive, and Tenant hereby expressly acknowledges
Landlord’s continued right (i) to itself utilize any rooftop space, and (ii) to re-sell, license or leasing of any rooftop space to an unaffiliated third party; provided, however, such Landlord (or third-party) use shall not materially
interfere with (or preclude the installation of) Tenant’s Telecommunications Equipment. 
  
 ARTICLE 23 
  
 SIGNS 
  
 23.1 Full Floors.
Subject to Landlord’s prior written approval, in its reasonable discretion, and provided all signs are in keeping with the quality, design and style of the Building and Project, Tenant, if the Premises comprise an entire floor of the Building,
at its sole cost and expense, may install identification signage anywhere in the Premises including in the elevator lobby of the Premises, provided that such signs must not be visible from the exterior of the Building. 
  
 23.2 Multi-Tenant Floors. If other tenants occupy space on the
floor on which the Premises is located, Tenant’s identifying signage shall be provided by Landlord, at Tenant’s cost, and such signage shall be comparable to that used by Landlord for other similar floors in the Building and shall comply
with Landlord’s Building standard signage program. 
  
 23.3
Prohibited Signage and Other Items. Any signs, notices, logos, pictures, names or advertisements which are installed and that have not been separately approved by Landlord may be removed without notice by Landlord at the sole expense
of Tenant. Except as expressly set forth in Section 23.4, below, Tenant may not install any signs on the exterior or roof of the Project or the Common Areas. Any signs (subject to the TCCs of Section 23.4 of this Lease), window
coverings, or blinds (even if the same are located behind the Landlord-approved window coverings for the Building), or other items visible from the exterior of the Premises or Building, shall be subject to the prior approval of Landlord, in its
reasonable discretion. 
  
 23.4 Tenant’s
Signage. Tenant shall be entitled to install the following signage in connection with Tenant’s lease of the Premises (collectively, the “Tenant’s Signage”): 
  

	 	(i)	Exclusive Building-top signage consisting of up to two (2) building-top signs identifying Tenant’s name or logo located at the top of the Building, as more particularly
identified on Exhibit A-1 attached hereto; and 

  

	 	(ii)	Exclusive signage on the monument located adjacent to the Building’s primary entrance as indicated on Exhibit A-1 (the “Building Monument Sign”);
provided, however, Landlord shall be able to locate its standard identification signage on the Project Monument Sign (with a relative size equal to no greater than twenty-five percent (25%) of Tenant’s signage thereon); and

  

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	 	(iii)	Exclusive “eyebrow” signage located on the metal facing of the front of the Building located directly above the main entry foyer to the Building, as more particularly
identified on Exhibit A-1. 

  
 23.4.1
Specifications and Permits. Tenant’s Signage shall set forth Tenant’s name and logo as determined by Tenant in its sole discretion; provided, however, in no event shall Tenant’s Signage include an “Objectionable
Name,” as that term is defined in Section 23.4.2, of this Lease. The graphics, materials, color, design, lettering, lighting, size, illumination, specifications and exact location of Tenant’s Signage (collectively, the “Sign
Specifications”) shall be subject to the prior written approval of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed, and shall be consistent and compatible with the quality and nature of the Project and
the Building Standard Signage Specifications. For purposes of this Section 23.4.1, the reference to “name” shall mean name and/or logo. In addition, Tenant’s Signage shall be subject to Tenant’s receipt of all required
governmental permits and approvals and shall be subject to all Applicable Law and to any covenants, conditions and restrictions affecting the Project. Landlord shall use commercially reasonable efforts to assist Tenant in obtaining all necessary
governmental permits and approvals for Tenant’s Signage. Tenant hereby acknowledges that, notwithstanding Landlord’s approval of Tenant’s Signage, Landlord has made no representation or warranty to Tenant with respect to the
probability of obtaining all necessary governmental approvals and permits for Tenant’s Signage. In the event Tenant does not receive the necessary governmental approvals and permits for Tenant’s Signage, Tenant’s and Landlord’s
rights and obligations under the remaining TCCs of this Lease shall be unaffected. 
  
 23.4.2 Objectionable Name. To the extent Original Tenant or its Affiliates desires to change the name and/or logo set forth on Tenant’s Signage, such name and/or logo shall not have a name which
relates to an entity which is of a character or reputation, or is associated with a political faction or orientation, which is inconsistent with the quality of the Project, or which would otherwise reasonably offend a landlord of the Comparable
Buildings (an “Objectionable Name”). The parties hereby agree that the names “Memec,” “Memec, LLC,” “Memec Group Holdings Limited” or any reasonable derivation thereof, shall not be deemed an
Objectionable Name; provided, however, that with regard to Tenant’s secondary identity signage to be located on the Building Monument Sign, the names “Insight,” “Impact,” or “Unique” or any reasonable derivation
thereof, shall not be deemed an Objectionable Name. 
  
 23.4.3
Termination of Right to Tenant’s Signage. The rights contained in this Section 23.4 shall be personal to the Original Tenant and any Permitted Assignee, and may only be exercised by the Original Tenant, its Affiliates, its
Permitted Transferee and/or a Permitted Assignee (and not any other assignee, sublessee or other transferee of the Original Tenant’s interest in this Lease) if the Original Tenant, its Affiliates, its Permitted Transferee and/or a Permitted
Assignee is in occupancy of no less than sixty percent (60%) of the then existing Premises. 
  
 23.4.4 Cost and Maintenance. The costs of the actual signs comprising Tenant’s Signage and the installation, design, construction, and any and all other costs associated with Tenant’s Signage,
including, without limitation, utility charges and hook-up fees, permits, and maintenance and repairs, shall be the sole responsibility of Tenant; provided that the costs and fees associated with the initial installation, design, and construction of
such Tenant’s Signage may, at Tenant’s option, be deemed a “Tenant Improvement Allowance Item,” as that term is set forth in Section 2.2 of the Tenant Work Letter; provided further that Landlord shall construct and install
the Project Monument Sign(s) (including, but not limited to, running sufficient power and utilities to the site of the Project Monument Sign), at Tenant’s sole cost and expense, and Tenant shall be responsible for the cost of Tenant’s sign
on the 
  

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 Project Monument Sign(s), but Landlord shall maintain all monument signs set forth in this Article 23 in good
condition and repair, the cost of which in connection with the Project Monument Sign(s) shall be included in Operating Expenses. Should Tenant’s Signage require repairs and/or maintenance, as determined in Landlord’s reasonable judgment,
Landlord shall have the right to provide Notice thereof to Tenant and Tenant (except as set forth above) shall cause such repairs and/or maintenance to be performed within thirty (30) days after receipt of such Notice from Landlord, at Tenant’s
sole cost and expense; provided, however, if such repairs and/or maintenance are reasonably expected to require longer than thirty (30) days to perform, Tenant shall commence such repairs and/or maintenance within such thirty (30) day period and
shall diligently prosecute such repairs and maintenance to completion. Should Tenant fail to perform such repairs and/or maintenance within the periods described in the immediately preceding sentence, Landlord shall, upon the delivery of an
additional five (5) business days’ prior written notice, have the right to cause such work to be performed and to charge Tenant as Additional Rent for the Actual Cost of such work. Upon the expiration or earlier termination of this Lease,
Tenant shall, at Tenant’s sole cost and expense, cause Tenant’s Signage to be removed and shall cause the areas in which such Tenant’s Signage was located to be restored to the condition existing immediately prior to the placement of
such Tenant’s Signage (excepting normal wear and tear caused by the sun, rain and other elements to which such Tenant’s Signage is exposed). If Tenant fails to timely remove such Tenant’s Signage or to restore the areas in which such
Tenant’s Signage was located, as provided in the immediately preceding sentence, then Landlord may perform such work, and all Actual Costs incurred by Landlord in so performing shall be reimbursed by Tenant to Landlord within thirty (30) days
after Tenant’s receipt of an invoice therefor. The TCCs of this Section 23.4.4 shall survive the expiration or earlier termination of this Lease. 
  
 ARTICLE 24 
  
 COMPLIANCE WITH LAW 
  
 Tenant shall not do anything or suffer anything to be done in or about the Premises or the Project which will in any way conflict with any law, statute,
ordinance or other governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated, including, without limitation, handicapped access laws and regulations (including the Americans with Disabilities Act, any
mandatory transportation management programs, and anti-discrimination laws, each to the extent applicable) (collectively, “Applicable Laws”). At its sole cost and expense, Tenant shall promptly comply with all such Applicable Laws
which relate to (i) Tenant’s use of the Premises for non-general office use, (ii) the Alterations or Tenant Improvements in the Premises, or (iii) the Base Building, but, as to the Base Building, only to the extent such obligations are
triggered by Tenant’s Alterations, the Tenant Improvements, or use of the Premises for non-general office use. Should any standard or regulation now or hereafter be imposed on Landlord or Tenant by a state, federal or local governmental body
charged with the establishment, regulation and enforcement of occupational, health or safety standards for employers, employees, landlords or tenants, then Tenant agrees, at its sole cost and expense, to comply promptly with such standards or
regulations. The judgment of any court of competent jurisdiction or the admission of Tenant in any judicial action, regardless of whether Landlord is a party thereto, that Tenant has violated any of said governmental measures, shall be conclusive of
that fact as between Landlord and Tenant. Landlord shall comply with all Applicable Laws relating to the Base Building, provided that compliance with such Applicable Laws is not the responsibility of Tenant under this Lease, and provided further
that Landlord’s failure to comply therewith would prohibit Tenant from obtaining or maintaining a certificate of occupancy for the Premises, or would unreasonably and materially affect the safety of Tenant’s employees or create a
significant health hazard for Tenant’s employees. Landlord shall be permitted to include in Operating Expenses any costs or expenses incurred by Landlord under this Article 24 to the extent consistent with the terms of Section
4.2.4, above. 
  

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 ARTICLE 25 
  
 LATE CHARGES 
  
 If any installment of Rent or any other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) days following
Tenant’s receipt of written notice that said amount was not paid when due, then Tenant shall pay to Landlord a late charge equal to five percent (5%) of the overdue amount plus any attorneys’ fees incurred by Landlord by reason of
Tenant’s failure to pay Rent and/or other charges when due hereunder. The late charge shall be deemed Additional Rent and the right to require it shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and
shall not be construed as liquidated damages or as limiting Landlord’s remedies in any manner. In addition to the late charge described above, any Rent or other amounts owing hereunder which are not paid within ten (10) days after the date they
are due shall bear interest from the date when due until paid at a rate per annum (the “Interest Rate”) equal to the lesser of (i) the annual “Bank Prime Loan” rate cited in the Federal Reserve Statistical Release
Publication G.13(415), published on the first Tuesday of each calendar month (or such other comparable index as Landlord and Tenant shall reasonably agree upon if such rate ceases to be published) plus four (4) percentage points, and (ii) the
highest rate permitted by applicable law. 
  
 ARTICLE 26

  
 LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY
TENANT 
  
 26.1 Landlord’s Cure. All
covenants and agreements to be kept or performed by Tenant under this Lease shall be performed by Tenant at Tenant’s sole cost and expense and without any reduction of Rent, except to the extent, if any, otherwise expressly provided herein. If
Tenant shall fail to perform any obligation under this Lease, and such failure shall continue in excess of the time allowed under Section 19.1.2, above, unless a specific time period is otherwise stated in this Lease, Landlord may, but shall
not be obligated to, make any such payment or perform any such act on Tenant’s part without waiving its rights based upon any default of Tenant and without releasing Tenant from any obligations hereunder. 
  
 26.2 Tenant’s Reimbursement. Except as may be specifically
provided to the contrary in this Lease, Tenant shall pay to Landlord, upon delivery by Landlord to Tenant of statements therefor: (i) sums equal to expenditures reasonably made and obligations incurred by Landlord in connection with the remedying by
Landlord of Tenant’s defaults pursuant to the provisions of Section 26.1; (ii) sums equal to all losses, costs, liabilities, damages and expenses referred to in Article 10 of this Lease; and (iii) sums equal to all expenditures
made and obligations incurred by Landlord in collecting or attempting to collect the Rent or in enforcing or attempting to enforce any rights of Landlord under this Lease or pursuant to law, including, without limitation, all legal fees and other
amounts so expended. Tenant’s obligations under this Section 26.2 shall survive the expiration or sooner termination of the Lease Term. 
  
 ARTICLE 27 
  
 ENTRY BY LANDLORD 
  
 Landlord reserves the right at all reasonable times (during Building Hours with respect to items (i) and (ii) below) and upon at least twenty-four (24)
hours prior notice to Tenant (except in the case of an emergency) to enter the Premises to (i) inspect them; (ii) show the Premises to prospective purchasers, or to current or prospective mortgagees, ground or underlying lessors or insurers, or
during the last twelve (12) months of the Lease Term, to prospective tenants; (iii) post notices of nonresponsibility; or (iv) alter, 
  

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 improve or repair the Premises or the Building, or for structural alterations, repairs or improvements to the Building or
the Building’s systems and equipment. Notwithstanding anything to the contrary contained in this Article 27, Landlord may enter the Premises at any time to (A) perform services required of Landlord, including janitorial service; (B) take
possession due to any breach of this Lease in the manner provided herein; and (C) perform any covenants of Tenant which Tenant fails to perform. Landlord may make any such entries without the abatement of Rent, except as otherwise provided in this
Lease, and may take such reasonable steps as required to accomplish the stated purposes; provided, however, except for (i) emergencies, (ii) repairs, alterations, improvements or additions required by governmental or quasi-governmental authorities
or court order or decree, or (iii) repairs which are the obligation of Tenant hereunder, any such entry shall be performed in a manner so as not to unreasonably interfere with Tenant’s use of the Premises and shall be performed after normal
business hours if reasonably practical. With respect to items (ii) and (iii) above, Landlord shall use commercially reasonable efforts to not materially interfere with Tenant’s use of, or access to, the Premises. Except as otherwise set forth
in Section 3.2, Tenant hereby waives any claims for damages or for any injuries or inconvenience to or interference with Tenant’s business, lost profits, any loss of occupancy or quiet enjoyment of the Premises, and any other loss
occasioned thereby. For each of the above purposes, Landlord shall at all times have a key with which to unlock all the doors in the Premises, excluding Tenant’s vaults, safes and special security areas designated in advance by Tenant (the
“Security Areas”). Notwithstanding anything set forth in this Article 27 to the contrary, Landlord shall have no access or inspection rights as to the Security Areas, except in the event of an emergency where such entry is
reasonably required. In an emergency, Landlord shall have the right to use any means that Landlord may deem proper to open the doors in and to the Premises, provided Landlord has reasonably attempted, but to no avail, to obtain Tenant’s
immediate cooperation in connection therewith. Any entry into the Premises by Landlord in the manner hereinbefore described shall not be deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an actual or constructive
eviction of Tenant from any portion of the Premises. No provision of this Lease shall be construed as obligating Landlord to perform any repairs, alterations or decorations except as otherwise expressly agreed to be performed by Landlord herein.

  
 ARTICLE 28 
  
 TENANT PARKING 
  
 Tenant and the Tenant’s parties (including Tenant’s visitors) shall
be entitled to utilize, without charge, commencing on the Lease Commencement Date, the amount of parking spaces set forth in Section 9 of the Summary, on a monthly basis throughout the Lease Term and any Option Term, which parking spaces
shall pertain to the Project parking areas. Each parking pass shall be for a single, non-tandem pass. Included in such allotment of parking spaces provided in the Summary shall be the number of handicapped parking spaces required by Applicable Law.
The location of Tenant’s reserved parking spaces shall be as set forth on Exhibit A-2, attached hereto. Tenant shall cooperate with Landlord to attempt to require that Tenant Parties comply with the Rules and Regulations which are
prescribed from time to time by Landlord for the orderly operation and use of the parking areas where the parking spaces are located, including any sticker or other identification system established by Landlord, Tenant’s cooperation in seeing
that Tenant’s employees and visitors also comply with such rules and regulations and Tenant not being in default under this Lease. Landlord specifically reserves the right to change the size, configuration, design, layout and all other aspects
of the Project parking areas and improvements (provided that Tenant’s parking rights are not reduced as a result thereof and as long as Tenant’s obligations are not materially or unreasonably increased as a result thereof and such
change(s) do not materially adversely affect Tenant’s use or occupancy of the Premises or create a security risk for Tenant or its employees) at any time upon thirty (30) days’ prior written notice and Tenant acknowledges and agrees that
Landlord may, without incurring any liability to Tenant and without any abatement of Rent under this Lease, from time to time, temporarily close-off or restrict access to the Project parking areas 
  

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 only for purposes of permitting or facilitating any such construction, alteration or improvements, not to exceed, without
Tenant’s reasonable approval, ten (10) business days in any calendar year. Landlord may delegate its responsibilities hereunder to a parking operator in which case such parking operator shall have all the rights of control attributed hereby to
the Landlord. The parking spaces provided to Tenant pursuant to this Article 28 are provided to Tenant solely for use by Tenant’s own personnel, visitors and Tenant’s occupants and such spaces may not be transferred, assigned,
subleased or otherwise alienated by Tenant, except on a pro-rata basis in connection with an assignment or subletting of the Premises permitted or approved in accordance with the TCCs of Article 14. 
  
 ARTICLE 29 
  
 MISCELLANEOUS PROVISIONS 
  
 29.1 Terms; Captions. The words “Landlord” and
“Tenant” as used herein shall include the plural as well as the singular. The necessary grammatical changes required to make the provisions hereof apply either to corporations or partnerships or individuals, men or women, as the case may
require, shall in all cases be assumed as though in each case fully expressed. The captions of Articles and Sections are for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of such Articles and Sections.

  
 29.2 Binding Effect. Subject to all other
provisions of this Lease, each of the covenants, conditions and provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit not only of Landlord and of Tenant, but also of their respective heirs,
personal representatives, successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of Article 14 of this Lease. 
  
 29.3 No Air Rights. No rights to any view or to light or air over any property, whether belonging to Landlord
or any other person, are granted to Tenant by this Lease. If at any time any windows of the Premises are temporarily darkened or the light or view therefrom is obstructed by reason of any repairs, improvements, maintenance or cleaning in or about
the Project, the same shall be without liability to Landlord and without any reduction or diminution of Tenant’s obligations under this Lease. 
  
 29.4 Modification of Lease. Should any current or prospective mortgagee or ground lessor for the Building or Project require a modification
of this Lease, which modification will not cause an increased cost or expense to Tenant or in any other way materially and adversely change the rights and obligations of Tenant hereunder, then and in such event, Tenant agrees that this Lease may be
so modified and agrees to execute whatever documents are reasonably required therefor and to deliver the same to Landlord within ten (10) days following a request therefor; provided, however, to the extent Landlord requires that Tenant execute
documents pursuant to the terms and condition of this Section 29.4, Landlord shall pay Tenant for its review and processing fees, along with reasonable professional fees (including, without limitation, attorneys’ fees and
accountants’ fees), not to exceed One Thousand Five Hundred and No/l00 Dollars ($1,500.00), reasonably incurred by Tenant in connection with its review of such documents. At the request of Landlord or any mortgagee or ground lessor, Tenant
agrees to execute a short form of Lease and deliver the same to Landlord within ten (10) days following the request therefor. 
  
 29.5 Transfer of Landlord’s Interest. Tenant acknowledges that Landlord has the right to transfer all or any portion of its interest in
the Project or Building and in this Lease, and Tenant agrees that in the event of any such transfer, Landlord shall automatically be released from all liability under this Lease and Tenant agrees to look solely to such transferee for the performance
of Landlord’s obligations hereunder after the date of transfer and such transferee shall be deemed to have fully assumed and be liable for all obligations of this Lease to be performed by Landlord, including the return of any Security

  

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 Deposit, and Tenant shall attorn to such transferee; provided, however, Landlord shall remain responsible to Tenant for
Landlord’s obligations which arose prior to the date of such transfer pursuant to the terms and condition of this Lease. Tenant further acknowledges that Landlord may assign its interest in this Lease to a mortgage lender as additional security
and agrees that such an assignment shall not release Landlord from its obligations hereunder and that Tenant shall continue to look to Landlord for the performance of its obligations hereunder. 
  
 29.6 Recording. A “Memorandum of Lease,”
substantially in the form attached hereto as Exhibit I, shall be executed and acknowledged by Landlord and Tenant concurrently with the execution of this Lease and either Landlord or Tenant may, at such party’s sole cost and
expense, record such Memorandum of Lease. 
  
 29.7
Landlord’s Title. Landlord’s title is and always shall be paramount to the title of Tenant. Nothing herein contained shall empower Tenant to do any act which can, shall or may encumber the title of Landlord. 
  
 29.8 Relationship of Parties. Nothing contained in this Lease
shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venturer or any association between Landlord and Tenant. 
  
 29.9 Application of Payments. Landlord shall have the right to
apply payments received from Tenant pursuant to this Lease, regardless of Tenant’s designation of such payments, to satisfy any obligations of Tenant hereunder, in such order and amounts as Landlord, in its sole discretion, may elect.

  
 29.10 Time of Essence. Time is of the essence
with respect to the performance of every provision of this Lease in which time of performance is a factor. 
  
 29.11 Partial Invalidity. If any term, provision or condition contained in this Lease shall, to any extent, be invalid or unenforceable, the
remainder of this Lease, or the application of such term, provision or condition to persons or circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term,
provision and condition of this Lease shall be valid and enforceable to the fullest extent possible permitted by law. 
  
 29.12 No Warranty. In executing and delivering this Lease, Tenant has not relied on any representations, including, but not limited to, any
representation as to the amount of any item comprising Additional Rent or the amount of the Additional Rent in the aggregate or that Landlord is furnishing the same services to other tenants, at all, on the same level or on the same basis, or any
warranty or any statement of Landlord which is not set forth herein or in one or more of the exhibits attached hereto. 
  
 29.13 Landlord Exculpation. The liability of Landlord or the Landlord Parties to Tenant for any default by Landlord under this Lease or
arising in connection herewith or with Landlord’s operation, management, leasing, repair, renovation, alteration or any other matter relating to the Project or the Premises shall be limited solely and exclusively to an amount which is equal to
the lesser of (a) the interest of Landlord in the Building or (b) the equity interest Landlord would have in the Building if the Building were encumbered by third-party debt in an amount equal to eighty percent (80%) of the value of the Building (as
such value is determined by Landlord), provided that in no event shall such liability extend to any sales or insurance proceeds received by Landlord or the Landlord Parties in connection with the Project, Building or Premises. Neither Landlord, nor
any of the Landlord Parties shall have any personal liability therefor, and Tenant hereby expressly waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. The limitations of liability
contained in this Section 29.13 shall inure to the benefit of Landlord’s and the Landlord Parties’ present 
  

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 and future partners, beneficiaries, officers, directors, trustees, shareholders, agents and employees, and their
respective partners, heirs, successors and assigns. Under no circumstances shall any present or future partner of Landlord (if Landlord is a partnership), or trustee or beneficiary (if Landlord or any partner of Landlord is a trust), have any
liability for the performance of Landlord’s obligations under this Lease. Notwithstanding any contrary provision herein, neither Landlord nor the Landlord Parties shall be liable under any circumstances for injury or damage to, or interference
with, Tenant’s business, including but not limited to, loss of profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use, in each case, however occurring. 
  
 29.14 Entire Agreement. It is understood and acknowledged that
there are no oral agreements between the parties hereto affecting this Lease and this Lease constitutes the parties’ entire agreement with respect to the leasing of the Premises and supersedes and cancels any and all previous negotiations,
arrangements, brochures, agreements and understandings, if any, between the parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease. None of the
terms, covenants, conditions or provisions of this Lease can be modified, deleted or added to except in writing signed by the parties hereto. 
  
 29.15 Right to Lease. Landlord reserves the absolute right to effect such other tenancies in the Project as Landlord in the exercise of its
sole business judgment shall determine to best promote the interests of the Building or Project. Tenant does not rely on the fact, nor does Landlord represent, that any specific tenant or type or number of tenants shall, during the Lease Term,
occupy any space in the Building or Project. 
  
 29.16 Force
Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, fire or other
casualty, and other causes beyond the reasonable control of the party obligated to perform, except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant pursuant to this Lease and except as to
Tenant’s obligations under Articles 5 and 24 of this Lease (collectively, a “Force Majeure”), notwithstanding anything to the contrary contained in this Lease, shall excuse the performance of such party for a period
equal to any such prevention, delay or stoppage and, therefore, if this Lease specifies a time period for performance of an obligation of either party, that time period shall be extended by the period of any delay in such party’s performance
caused by a Force Majeure. 
  
 29.17 Waiver of Redemption by
Tenant. Tenant hereby waives, for Tenant and for all those claiming under Tenant, any and all rights now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ, Tenant’s right of occupancy of
the Premises after any termination of this Lease. 
  
 29.18
Notices. All notices, demands, statements, designations, approvals or other communications (collectively, “Notices”) given or required to be given by either party to the other hereunder or by law shall be in writing,
shall be (A) sent by United States certified or registered mail, postage prepaid, return receipt requested (“Mail”), (B) transmitted by telecopy, if such telecopy is promptly followed by a Notice sent by Mail, (C) delivered by a
nationally recognized overnight courier, or (D) delivered personally. Any Notice shall be sent, transmitted, or delivered, as the case may be, to Tenant at the appropriate address set forth in Section 10 of the Summary, or to such other place
as Tenant may from time to time designate in a Notice to Landlord, or to Landlord at the addresses set forth below, or to such other places as Landlord may from time to time designate in a Notice to Tenant. Any Notice will be deemed given (i) three
(3) days after the date it is posted if sent by Mail, (ii) the date the telecopy is transmitted, (iii) the date the overnight courier delivery is made, or (iv) the date personal delivery is made or attempted to be made. If Tenant is notified of the
identity and address of Landlord’s mortgagee 
  

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 or ground or underlying lessor, Tenant shall give to such mortgagee or ground or underlying lessor written notice of any
default by Landlord under the terms of this Lease by registered or certified mail, and such mortgagee or ground or underlying lessor shall be given a reasonable opportunity to cure such default prior to Tenant’s exercising any remedy available
to Tenant. As of the date of this Lease, any Notices to Landlord must be sent, transmitted, or delivered, as the case may be, to the following addresses: 
  
 Kilroy Realty Corporation 
 12200 W. Olympic Boulevard, 
 Suite 200 
 Los Angeles, California 90064 
 Attention: Legal Department 
  
 with copies to: 
  
 Kilroy Realty Corporation 
 3811 Valley Centre Drive, Suite 300 
 San Diego, California 92130 
 Attention: Mr. Roger Simsiman 
  
 and 
  
 Allen
Matkins Leck Gamble & Mallory 
 1901 Avenue of the Stars, 
 Suite 1800 
 Los Angeles, California 90067 
 Attention: Anton N. Natsis, Esq. 
  
 29.19 Joint and Several. If there is more than one Tenant, the
obligations imposed upon Tenant under this Lease shall be joint and several. 
  
 29.20 Authority. Each individual executing this Lease on behalf of Tenant or Landlord, as the case may be, hereby represents and warrants to the other party, that Tenant and Landlord, as the case may be,
is a duly formed and existing entity qualified to do business in California and that Tenant and Landlord, as applicable, have full right and authority to execute and deliver this Lease and that each person signing on behalf of Tenant and Landlord,
as applicable, is authorized to do so. Each party shall, within ten (10) days after execution of this Lease, deliver to the other party satisfactory evidence of such authority and, if a corporation, upon demand by the other party, satisfactory
evidence of (i) good standing in such party’s state of incorporation and (ii) qualification to do business in California. 
  
 29.21 Attorneys’ Fees. In the event that either Landlord or Tenant should bring suit for the possession of the Premises, for the
recovery of any sum due under this Lease, or because of the breach of any provision of this Lease or for any other relief against the other, then all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party
therein shall be paid by the other party, which obligation on the part of the other party shall be deemed to have accrued on the date of the commencement of such action and shall be enforceable whether or not the action is prosecuted to judgment.

  
 29.22 Governing Law; WAIVER OF TRIAL BY JURY.
This Lease shall be construed and enforced in accordance with the laws of the State of California. IN ANY ACTION OR PROCEEDING ARISING HEREFROM, LANDLORD AND TENANT HEREBY CONSENT TO (I) THE 
  

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 JURISDICTION OF ANY COMPETENT COURT WITHIN THE STATE OF CALIFORNIA, (II) SERVICE OF PROCESS BY ANY MEANS AUTHORIZED BY
CALIFORNIA LAW, AND (III) IN THE INTEREST OF SAVING TIME AND EXPENSE, TRIAL WITHOUT A JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR THEIR SUCCESSORS IN RESPECT OF ANY MATTER ARISING OUT
OF OR IN CONNECTION WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM FOR INJURY OR DAMAGE, OR ANY EMERGENCY OR STATUTORY REMEDY. IN THE EVENT LANDLORD COMMENCES ANY SUMMARY
PROCEEDINGS OR ACTION FOR NONPAYMENT OF BASE RENT OR ADDITIONAL RENT, TENANT SHALL NOT INTERPOSE ANY COUNTERCLAIM OF ANY NATURE OR DESCRIPTION (UNLESS SUCH COUNTERCLAIM SHALL BE MANDATORY) IN ANY SUCH PROCEEDING OR ACTION, BUT SHALL BE RELEGATED TO
AN INDEPENDENT ACTION AT LAW. 
  
 29.23 Submission of
Lease. Submission of this instrument for examination or signature by Tenant does not constitute a reservation of, option for or option to lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord
and Tenant. 
  
 29.24 Broker. Landlord and Tenant
hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Lease, excepting only the real estate broker or agents specified in Section 12 of the Summary (the
“Broker”), and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Lease. Landlord shall pay such Broker pursuant to separate written agreements between Landlord and the
Broker. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses (including without limitation reasonable
attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of any dealings with any real estate broker or agent, other than the Broker, occurring by, through, or under the indemnifying
party. 
  
 29.25 Independent Covenants. This Lease
shall be construed as though the covenants herein between Landlord and Tenant are independent and not dependent and Tenant hereby expressly waives the benefit of any statute to the contrary and agrees that if Landlord fails to perform its
obligations set forth herein, Tenant shall not be entitled to make any repairs or perform any acts hereunder at Landlord’s expense or to any setoff of the Rent or other amounts owing hereunder against Landlord. 
  
 29.26 Project or Building Name and Signage. Landlord shall have
the right at any time to change the name of the Project and to install, affix and maintain any and all signs on the exterior and on the interior of the Project or any other building in the Project, other than the Building, as Landlord may, in
Landlord’s sole discretion, desire; provided, however, in no event shall the name of the Project include (or be substantially derived from) the name of one of Tenant’s direct competitors or competitive suppliers as identified on
Exhibit M attached hereto, unless otherwise agreed to by Tenant. Except as otherwise expressly set forth in Article 23 of this Lease, Landlord shall not have the right to install or affix any signs on (i) the exterior or on the
interior of the Building, or (ii) the Building Monument sign. Tenant shall not use the name of the Project or Building or use pictures or illustrations of the Project or Building in advertising or other publicity or for any purpose other than as the
address of the business to be conducted by Tenant in the Premises, without the prior written consent of Landlord. Notwithstanding the foregoing, Tenant may use a picture of the Building showing its name thereon in its advertising and promotional
materials. 
  

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 29.27 Counterparts. This Lease may be executed in counterparts with the same effect as if
both parties hereto had executed the same document. Both counterparts shall be construed together and shall constitute a single lease. 
  
 29.28 Confidentiality. Tenant acknowledges that the content of this Lease and any related documents are confidential information. Tenant
shall keep such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other than Tenant’s partners, administrators, consultants (including Tenant’s financial, legal, and
space planning consultants), a prospective Transferee, and except as required by Applicable Law (including the requirements of the Securities Exchange Commission) or in connection with a dispute or litigation hereunder or as required by subpoena.

  
 29.29 Intentionally Omitted. 
  
 29.30 Building Renovations. It is specifically understood and
agreed that Landlord has made no representation or warranty to Tenant and has no obligation and has made no promises to alter, remodel, improve, renovate, repair or decorate the Premises, Building, or any part thereof and that no representations
respecting the condition of the Premises or the Building have been made by Landlord to Tenant except as specifically set forth herein or in the Tenant Work Letter. However, Tenant hereby acknowledges that Landlord is currently renovating or may
during the Lease Term renovate, improve, alter, or modify (collectively, the “Renovations”) the Project, the Building and/or the Premises including without limitation the parking structure, common areas, systems and equipment, roof,
and structural portions of the same, which Renovations may include, without limitation, (i) installing sprinklers in the Building common areas and tenant spaces, (ii) modifying the common areas and tenant spaces to comply with applicable laws and
regulations, including regulations relating to the physically disabled, seismic conditions, and building safety and security, and (iii) installing new floor covering, lighting, and wall coverings in the Building common areas, and in connection with
any Renovations, Landlord may, among other things, erect scaffolding or other necessary structures in the Building, limit or eliminate access to portions of the Project, including portions of the common areas, or perform work in the Building, which
work may create noise, dust or leave debris in the Building. Tenant hereby agrees that such Renovations and Landlord’s actions in connection with such Renovations shall in no way constitute a constructive eviction of Tenant nor entitle Tenant
to any abatement of Rent. Landlord shall have no responsibility or for any reason be liable to Tenant for any direct or indirect injury to or interference with Tenant’s business arising from the Renovations, nor shall Tenant be entitled to any
compensation or damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant’s personal property or improvements resulting from the Renovations or Landlord’s actions in connection with such Renovations,
or for any inconvenience or annoyance occasioned by such Renovations or Landlord’s actions. 
  
 29.31 No Violation. Tenant hereby warrants and represents that, to the best of Tenant’s knowledge, neither its execution of nor
performance under this Lease shall cause Tenant to be in violation of any agreement, instrument, contract, law, rule or regulation by which Tenant is bound, and Tenant shall protect, defend, indemnify and hold Landlord harmless against any claims,
demands, losses, damages, liabilities, costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, arising from Tenant’s breach of this warranty and representation. 
  
 29.32 Communications and Computer Lines. Tenant may install,
maintain, replace, remove or use any communications or computer wires and cables (collectively, the “Lines”) at the Project in or serving the Premises, provided that (i) Tenant shall use an experienced and qualified contractor and
comply with all of the other provisions of Articles 7 and 8 of this Lease, (ii) any new or existing Lines servicing the Premises shall comply with all applicable governmental laws and regulations, and (iii) Tenant shall pay all costs in
connection therewith. Landlord reserves the right to require that Tenant 
  

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 remove any Lines located in or serving the Premises which are installed in violation of these provisions, or which are at
any time in violation of any laws or represent a dangerous or potentially dangerous condition. 
  
 29.33 Hazardous Substances. 
  
 29.33.1 Definitions. For purposes of this Lease, the following definitions shall apply: “Hazardous Material(s)” shall mean any solid, liquid or gaseous substance or material that is
described or characterized as a toxic or hazardous substance, waste, material, pollutant, contaminant or infectious waste, or any matter that in certain specified quantities would be injurious to the public health or welfare, or words of similar
import, in any of the “Environmental Laws,” as that term is defined below, or any other words which are intended to define, list or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity,
carcinogenicity, toxicity or reproductive toxicity and includes, without limitation, asbestos, petroleum (including crude oil or any fraction thereof, natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel, or any
mixture thereof), petroleum products, polychlorinated biphenyls, urea formaldehyde, radon gas, nuclear or radioactive matter, medical waste, soot, vapors, fumes, acids, alkalis, chemicals, microbial matters (such as molds, fungi or other bacterial
matters), biological agents and chemicals which may cause adverse health effects, including but not limited to, cancers and/or toxicity. “Environmental Laws” shall mean any and all federal, state, local or quasi-governmental laws
(whether under common law, statute or otherwise), ordinances, decrees, codes, rulings, awards, rules, regulations or guidance or policy documents now or hereafter enacted or promulgated and as amended from time to time, in any way relating to (a)
the protection of the environment, the health and safety of persons (including employees), property or the public welfare from actual or potential release, discharge, escape or emission (whether past or present) of any Hazardous Materials or (b) the
manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of any Hazardous Materials. 
  
 29.33.2 Compliance with Environmental Laws. Landlord covenants that during the Lease Term, Landlord shall comply with all Environmental Laws
in accordance with, and as required by, the TCCs of Article 24 of this Lease. Tenant represents and warrants that, except as herein set forth, it will not use, store or dispose of any Hazardous Materials in or on the Premises. However,
notwithstanding the preceding sentence, Landlord agrees that Tenant may use, store and properly dispose of commonly available household cleaners and chemicals to maintain the Premises and Tenant’s routine office operations (such as printer
toner and copier toner) (hereinafter the “Permitted Chemicals”). Landlord and Tenant acknowledge that any or all of the Permitted Chemicals described in this paragraph may constitute Hazardous Materials. However, Tenant may use, store and
dispose of same, provided that in doing so, Tenant fully complies with all Environmental Laws. 
  
 29.33.3 Landlord’s Right of Environmental Audit. Landlord may, upon reasonable notice to Tenant, be granted access to and enter the Premises no more than once annually to perform or cause to have
performed an environmental inspection, site assessment or audit. Such environmental inspector or auditor may be chosen by Landlord, in its sole discretion, and be performed at Landlord’s sole expense. To the extent that the report prepared upon
such inspection, assessment or audit, indicates the presence of Hazardous Materials in violation of Environmental Laws (to the extent such presence was caused and/or permitted by Tenant), or provides recommendations or suggestions to prohibit the
release, discharge, escape or emission of any Hazardous Materials (by or on behalf of Tenant) at, upon, under or within the Premises, or for Tenant to comply with any Environmental Laws which are the responsibility of Tenant, Tenant shall promptly,
at Tenant’s sole expense, comply with such recommendations or suggestions, including, but not limited to performing such additional investigative or subsurface investigations or remediation(s) as recommended by such inspector or auditor.
Notwithstanding the above, if at any time, Landlord has actual notice or reasonable cause to believe that Tenant has violated, 
  

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 or permitted any violations of any Environmental Law, then Landlord will be entitled to perform its environmental
inspection, assessment or audit at any time, notwithstanding the above mentioned annual limitation, and Landlord shall pay for the cost or fees incurred for such environmental inspection, assessment or audit; provided, however, that to the extent
such environmental inspection, assessment or audit indicates a violation of Environmental Laws by or on behalf of Tenant, Tenant shall reimburse Landlord for such incurred costs or fees as Additional Rent. 
  
 29.33.4 Indemnifications. Landlord agrees to indemnify, defend,
protect and hold harmless the Tenant Parties from and against any liability, obligation, damage or costs, including without limitation, attorneys’ fees and costs, resulting directly or indirectly from any use, presence, removal or disposal of
any Hazardous Materials to the extent such liability, obligation, damage or costs was a result of actions caused or permitted by Landlord or a Landlord Party. Tenant agrees to indemnify, defend, protect and hold harmless the Landlord Parties from
and against any liability, obligation, damage or costs, including without limitation, attorneys’ fees and costs, resulting directly or indirectly from any use, presence, removal or disposal of any Hazardous Materials or breach of any provision
of this section, to the extent such liability, obligation, damage or costs was a result of actions caused or permitted by Tenant or a Tenant Party. 
  
 29.34 Development of the Project. 
  
 29.34.1 Subdivision. Landlord reserves the right to further subdivide all or a portion of the Project. Tenant agrees to execute and deliver,
upon demand by Landlord and in the form requested by Landlord, any additional documents needed to conform this lease to the circumstances resulting from such subdivision. 
  
 29.34.2 The Other Improvements. If portions of the Project or property adjacent to the Project (collectively,
the “Other Improvements”) are owned by an entity other than Landlord, Landlord, at its option, may enter into an agreement with the owner or owners of any or all of the Other Improvements to provide (i) for reciprocal rights of
access and/or use of the Project and the Other Improvements, (ii) for the common management, operation, maintenance, improvement and/or repair of all or any portion of the Project and the Other Improvements, (iii) for the allocation of a portion of
the Direct Expenses to the Other Improvements and the operating expenses and taxes for the Other Improvements to the Project, and (iv) for the use or improvement of the Other Improvements and/or the Project in connection with the improvement,
construction, and/or excavation of the Other Improvements and/or the Project. Nothing contained herein shall be deemed or construed to limit or otherwise affect Landlord’s right to convey all or any portion of the Project or any other of
Landlord’s rights described in this Lease. 
  
 29.34.3
Construction of Project and Other Improvements. Tenant acknowledges that portions of the Project and/or the Other Improvements may be under construction following Tenant’s occupancy of the Premises, and that such construction may
result in levels of noise, dust, obstruction of access, etc. which are in excess of that present in a fully constructed project. Tenant hereby waives any and all rent offsets or claims of constructive eviction which may arise in connection with such
construction. Notwithstanding the foregoing, Landlord shall, in connection with such construction, take commercially reasonable actions to minimize the levels of such noise, dust, obstruction or access, etc. 
  
 29.35 Office and Communications Services. 
  
 29.35.1 The Provider. Landlord has advised Tenant that certain
office and communications services may be offered to tenants of the Building by a concessionaire under contract to Landlord (“Provider”). Tenant shall be permitted to contract with Provider for the provision of any or all of such
services on such terms and conditions as Tenant and Provider may agree. 
  

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 29.35.2 Other Terms. Tenant acknowledges and agrees that: (i) Landlord has made no warranty
or representation to Tenant with respect to the availability of any such services, or the quality, reliability or suitability thereof; (ii) the Provider is not acting as the agent or representative of Landlord in the provision of such services, and
Landlord shall have no liability or responsibility for any failure or inadequacy of such services, or any equipment or facilities used in the furnishing thereof, or any act or omission of Provider, or its agents, employees, representatives, officers
or contractors; (iii) Landlord shall have no responsibility or liability for the installation, alteration, repair, maintenance, furnishing, operation, adjustment or removal of any such services, equipment or facilities; and (iv) any contract or
other agreement between Tenant and Provider shall be independent of this Lease, the obligations of Tenant hereunder, and the rights of Landlord hereunder, and, without limiting the foregoing, no default or failure of Provider with respect to any
such services, equipment or facilities, or under any contract or agreement relating thereto, shall have any effect on this Lease or give to Tenant any offset or defense to the full and timely performance of its obligations hereunder, or entitle
Tenant to any abatement of rent or additional rent or any other payment required to be made by Tenant hereunder, or constitute any accrual or constructive eviction of Tenant, or otherwise give rise to any other claim of any nature against Landlord.

  
 29.36 Intentionally Omitted. 
  
 29.37 Emergency Generator. Subject to Landlord’s
approval, which shall not be unreasonably withheld or delayed, and subject to the TCCs of this Section 29.37 and Article 8 of this Lease, Tenant may install, for Tenant’s own use and at Tenant’s sole cost and expense, but
without the payment of any Rent or a license or similar fee or charge, an emergency generator and related equipment (all such equipment defined collectively as the “Emergency Generator”) in, on or adjacent to the Building (such
location to be determined in conjunction with Landlord and Landlord’s reasonable requirements). The location, physical appearance and the size of the Emergency Generator shall be subject to Landlord’s reasonable approval, and Landlord may
require Tenant to install screening around such Emergency Generator, at Tenant’s sole cost and expense, as reasonably designated by Landlord. Tenant shall maintain such Emergency Generator, at Tenant’s sole cost and expense. In the event
Tenant elects to exercise its right to install the Emergency Generator, then Tenant shall give Landlord no less than sixty (60) days prior written notice thereof. Tenant shall reimburse to Landlord the reasonable costs actually incurred by Landlord
in approving such Emergency Generator. Tenant shall remove such Emergency Generator within thirty (30) days of the expiration or earlier termination of this Lease and shall repair any damage to the Building caused by such removal and return the
affected portion of the Project’s parking, landscaping and driveway areas to their pre-Emergency Generator condition. Such Emergency Generator shall be installed pursuant to plans and specifications approved by Landlord, which approval will not
be unreasonably withheld. Such Emergency Generator shall, in all instances, comply with applicable governmental laws, codes, rules and regulations. 
  
 29.38 Project Amenities. To the extent Landlord has reasonable control over certain services and/or amenities located within the Project,
the same shall be known as the “Project Amenities”. In the event Landlord makes any such Project Amenities available to Project tenants (other than the “Exempted Tenants”), Landlord shall make such Project Amenities
available to Tenant upon TCCs no less favorable to Tenant than to such other Project tenants (other than the Exempted Tenants). For purposes of this Section 29.38, “Exempted Tenants” with regard to any particular Project
Amenity, shall consist of (i) all tenants whose premises comprise, at a minimum, the entire building of the Project in which such Project Amenity is located, and (ii) Peregrine Systems, Inc. 
  
 [continued on following page] 
  

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 29.39 Guaranty. This Lease is subject to and conditioned upon Tenant delivering to
Landlord, concurrently with Tenant’s execution and delivery of this Lease, a guaranty (a “Guaranty”) in the form attached hereto as Exhibit G, which guaranty shall be fully executed by and binding upon Memec Group
Holdings Limited (the “Guarantor”). Tenant hereby expressly waives any and all of the benefits under the second sentence of California Civil Code Section 2822(a) with respect to the Guaranty, and agrees that Landlord (not Tenant)
may designate the portion of Tenant’s Lease obligations that are satisfied by a partial payment by Tenant. 
  
 IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be executed the day and date first above written. 
  

					
	 “LANDLORD”:

	
	 KILROY REALTY, L.P.,
 a Delaware limited partnership

		
	 By:
	 	 Kilroy Realty Corporation,

	 	 	 a Maryland corporation,

	 	 	 General Partner

		
	 By:
	 	 /s/    [ILLEGIBLE]

			
	 	 	 Its:
	 	 Senior Vice President

		
	 By:
	 	 Jeffrey C. Hawken

			
	 	 	 Its:
	 	 Executive Vice President, Chief Operating Officer

	
	 “TENANT”:

	
	 MEMEC, LLC,

	
	 a Delaware limited liability company

		
	 By:
	 	 /s/    DOUG LINDROTH

			
	 	 	 Its:
	 	 CFO

		
	 By:
	 	 /s/    [ILLEGIBLE]

			
	 	 	 Its:
	 	 Treasurer

  
 [acknowledgment
continued on following page] 
  

 - 60 - 

					
	 ACKNOWLEDGED, AGREED AND ACCEPTED.

	
	 “GUARANTOR”

	
	 MEMEC GROUP HOLDINGS LIMITED,
 a company incorporated and registered
 in England and Wales

		
	 By:
	 	 /s/    DAVID ASHWORTH

			
	 	 	 Its:
	 	 CEO

		
	 By:
	 	 /s/    JAMES WALLS

			
	 	 	 Its:
	 	 CFO

  

 - 61 - 

  
  
  
  
  
 EXHIBIT A 
  
 KILROY CENTRE DEL MAR 
  
 OUTLINE OF PREMISES

  
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 EXHIBIT A 
  
  

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 EXHIBIT A-1 
  
 KILROY CENTRE DEL MAR 
  
 BUILDING ELEVATIONS 
 (WITH
BUILDING-TOP SIGNAGE, BUILDING MONUMENT SIGNAGE 
 AND BUILDING EYEBROW SIGNAGE INDICATED) 
  
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 EXHIBIT A-1 
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 EXHIBIT A-2 
  
 KILROY CENTRE DEL MAR 
  
 RESERVED PARKING SPACE LOCATION(S) 
  
 [ATTACHED] 
  

 EXHIBIT A-2 
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 EXHIBIT B 
  
 KILROY CENTRE DEL MAR 
  
 TENANT WORK LETTER 
  
 [ATTACHED] 
  

 EXHIBIT B 
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 EXHIBIT B 
  
 KILROY CENTRE DEL MAR 
  

TENANT WORK LETTER 
  
 This Tenant Work Letter shall set forth the terms and conditions relating to the construction of the tenant improvements in the Premises. This Tenant Work
Letter is essentially organized chronologically and addresses the issues of the construction of the Premises, in sequence, as such issues will arise during the actual construction of the Premises. All references in this Tenant Work Letter to
Articles or Sections of “this Lease” shall mean the relevant portion of Articles 1 through 29 of the Office Lease to which this Tenant Work Letter is attached as Exhibit B and of which this Tenant Work Letter forms a
part, and all references in this Tenant Work Letter to Sections of “this Tenant Work Letter” shall mean the relevant portion of Sections 1 through 6 of this Tenant Work Letter. 
  
 SECTION 1 
  
 LANDLORD’S INITIAL CONSTRUCTION IN I HE PREMISES

  
 1.1 Base, Shell and Core of the Premises to be
Constructed by Landlord. In accordance with the TCCs of this Lease, Landlord has constructed, at its sole cost and expense, the base, shell, and core of the Building, including the floors of the Building on which the Premises is located
(collectively, the “Base, Shell and Core”), in accordance with those certain base-building plans and specifications attached hereto as Schedule 3, which Base, Shell, and Core shall be deemed to include the Parking
Facility on the Project located adjacent to the Building, which was constructed in accordance with the plans for such Parking Facility included on Schedule 3. The Base, Shell and Core shall consist of those portions of the Premises
which were in existence prior to the construction of the Tenant Improvements pursuant to this Tenant Work Letter. Landlord’s initial construction pursuant to this Section 1.1, and, if applicable, Section 1.2 of this Tenant Work
Letter, shall be, collectively, the “Landlord Work.” Tenant shall not be responsible for the cost of removal (and/or demolition) of those certain existing tenant improvements within the Premises designated for removal in the
“Construction Drawings,” as that term is defined in this Tenant Work Letter below; provided, however, only the reasonable value of any existing tenant improvements which shall remain in the Premises (pursuant to the Construction Drawings)
shall be included as “Tenant Improvement Allowance Items,” as that term is set forth in Section 2.2 of this Tenant Work Letter. Landlord and Tenant hereby acknowledge that it is anticipated that, in connection with Tenant’s
construction of certain of its “Tenant Improvements” (e.g., showers, changing areas, doorways, feature stairs, mail rooms, etc.), Tenant may make, pursuant to the remaining terms of this Tenant Work Letter, minor modifications to the Base,
Shell and Core. 
  
 1.2 Condition of the Premises.
Landlord covenants to Tenant that, as of the Lease Commencement Date: (a) the Base, Shell, and Core shall be constructed in accordance with the Lease and this Tenant Work Letter; (b) the Building Systems shall be in good working order; (c) the Base,
Shell, and Core shall comply with all applicable laws, codes, ordinances and regulations, including the Americans with Disabilities Act; (d) the Base, Shell, and Core shall comply with applicable standards of the American Insurance Association
(formerly, the National Board of Fire Underwriters) and the National Electrical Code and building material manufacturer’s specifications; and (e) there shall be no Hazardous Substances in violation of any applicable law located in, on, or about
the Project, Building or the Premises, except for any Hazardous Substances brought on the Premises or Project by Tenant. If the foregoing covenants are not true and correct as of the Lease Commencement Date, as Tenant’s sole remedy, Landlord
shall correct such item(s) at Landlord’s own cost and not as an Operating Expense within thirty (30) days after Landlord receives notice of such defect from Tenant (provided that any such 
  
 EXHIBIT B 
  
 - 1 - 

 notice must be delivered to Landlord within the first (1st) Lease Year); provided, however, if by the nature of such correction more than thirty (30) days is required to effect such correction, Landlord shall not be
in default hereunder if such correction is commenced within such thirty (30) day period and is diligently pursued to completion. 
  
 SECTION 2 
  
 TENANT IMPROVEMENTS 
  
 2.1 Tenant Improvement Allowance. Tenant shall be entitled to a tenant improvement allowance (the “Tenant Improvement Allowance”) in the total amount of Four Million Eight Hundred Twenty
Thousand Seven Hundred Sixty and No/100 Dollars ($4,820,760.00) (calculated based upon Forty-Two and No/100 Dollars ($42.00) per rentable square foot of the Premises) for the costs relating to the initial design and construction of Tenant’s
improvements which are permanently affixed to the Premises (collectively, the “Tenant Improvements”). Notwithstanding anything to the contrary herein, the Tenant Improvement allowance may be used by Tenant in conjunction with the
initial design and construction of the Tenant Improvements relating to both the Initial Premises and the Additional Premises. In no event shall Landlord be obligated to make disbursements pursuant to this Tenant Work Letter in a total amount which
exceeds the Tenant Improvement Allowance. All Tenant Improvements which are paid for, in whole or in part, with the Tenant Improvement Allowance shall be deemed Landlord’s property under the terms of the Lease. With respect to any portion of
the Tenant Improvement Allowance which is not disbursed by Landlord in connection with the construction of the Initial Premises, Landlord agrees and acknowledges that (i) any such amount shall be disbursed relating to the construction of the
Additional Premises, and (ii) that the Additional Premises Commencement Date is not anticipated to occur until approximately the second (2nd) anniversary of the Commencement Date of this Lease. In addition, Landlord hereby acknowledges and agrees that Landlord’s failure to disburse the Tenant Improvement Allowance with respect to the Additional Premises
pursuant to the TCCs of this Tenant Work Letter shall (following the applicable notice and cure periods set forth therein) constitute a Landlord default pursuant to the TCCs of Section 19.6 of the Lease, subject to, among other things, the
Tenant’s offset rights contained therein; provided, however, Tenant’s application of such offset shall not be pre-conditioned upon receipt of an award from a court or arbitrator otherwise required pursuant to such Section
19.6. 
  
 2.2 Disbursement of the Tenant
Improvement Allowance. Except as otherwise set forth in this Tenant Work Letter, the Tenant Improvement Allowance shall be disbursed by Landlord (each of which disbursements shall be made pursuant to Landlord’s disbursement process;
provided such disbursement process is reasonably approved by Tenant; provided further, however, such disbursement process shall be deemed reasonable to the extent it is materially consistent with the disbursement process previously developed and
currently in use between Landlord and Reno Contracting) for costs related to the construction of the Tenant Improvements and for the following items and costs (collectively, the “Tenant Improvement Allowance Items”): (i) payment of
the fees of the “Architect” and the “Engineers,” as those terms are defined in Section 3.1 of this Tenant Work Letter, reasonable project management fees (to the extent Tenant retains a third-party project manager),
payment of plan check, permit and license fees relating to construction of the Tenant Improvements, and payment of the reasonable fees incurred by, and the actual cost of reasonably required documents and materials supplied by, Landlord in
connection with the preparation and review of the “Construction Drawings,” as that term is defined in Section 3.1 of this Tenant Work Letter; (ii) the cost of any changes in the Base, Shell and Core when such changes are required by
the Construction Drawings; (iii) the cost of any changes to the Construction Drawings or Tenant Improvements required by all applicable Code; (iv) the cost of the Landlord’s Work; (v) the “Landlord Supervision Fee”, as that term is
defined in Section 4.3.2 of this Tenant Work Letter; and (vi) the cost of Tenant’s signage, security and cabling systems, in an amount not 
  
 EXHIBIT B 
  
 - 2 - 

 to exceed $5.00 per rentable square foot of the Premises, (vii) the cost of any meters and switch gear for Tenant’s
utility service, (viii) the costs associated with any commercially reasonable testing and/or inspection of the Base, Shell and Core in connection with the construction of the Tenant Improvements, and (ix) sales and use taxes. 
  
 2.3 Standard Tenant Improvement Package. Landlord has
established specifications (the “Building Standard Tenant Improvements”) for the Building standard components to be used in the construction of the Tenant Improvements in the Premises, which Building Standard Tenant Improvements are
set forth on Schedule 2 attached hereto. The quality of Tenant Improvements shall be equal to or of greater quality than the quality of the Building Standard Tenant Improvements. Landlord acknowledges that Tenant is not required to use
any of the specific Building Standard Tenant Improvements set forth on Schedule 2 and that Schedule 2 has been provided only as a means of indicating the minimum quality and quantity of the items listed thereon that will
be required in the construction of the Tenant Improvements; provided, however, that with regard to the selection of finishes for the elevator lobbies within the Building, the same shall be materially consistent with the elevator lobby finishes
contained in “Building 2” and “Building 3” within the Project. 
  
 2.4 Removal of Above Building Standard Tenant Improvements. “Above Standard Tenant Improvements” shall mean a configuration of the Tenant Improvements which is not usual and customary
for normal occupancy for general office use; provided, however, Landlord shall identify any such Tenant Improvements (or changes thereto) as “Above Building Standard Tenant Improvements” concurrently with Landlord’s review and
approval of the Approved Construction Drawings (or on a timely basis following Tenant’s request for such change/addition identified above); provided further, however, Landlord hereby acknowledges that, based upon its review of the “Final
Space Plan,” as that term is set forth in Section 3.2 of this Tenant Work Letter, only “Tenant’s Particular Features,” as that term is set forth in Section 4.2 of this Tenant Work Letter, are anticipated to be
designated as Above Standard Tenant Improvements. Prior to the end of the Term of this Lease, and at the written request of Landlord pursuant to Section 8.5 of the Lease, Tenant, at its sole cost and expense, shall remove from the Premises
any Above Standard Tenant Improvements so identified by Landlord, and shall return the affected portion of the Premises to a building-standard “warm shell” condition as reasonably determined by Landlord. Such removal of Above Standard
Tenant Improvements and requisite restoration shall be performed promptly and shall be completed by Tenant on or before the end of the Term of this Lease, and if Tenant fails to so remove any Above Standard Tenant Improvements and return the affect
to the building-standard “warm shell” condition as reasonably determined by Landlord, then at Landlord’s option, either (A) Tenant shall be deemed to be holding over in the Premises and Rent shall continue to accrue in accordance with
the terms of Article 16 of the Lease until such work shall be completed, or (B) Landlord may do so and Tenant shall reimburse Landlord for the cost of such removal and/or restoration. 
  
 SECTION 3 
  
 CONSTRUCTION DRAWINGS 
  

3.1 Selection of Architect/Construction Drawings. Tenant has retained Howard-Sneed Architecture and Design (the
“Architect”) to prepare the “Construction Drawings,” as that term is defined in this Section 3.1; which Architect has been approved by Landlord. Tenant shall retain the engineering consultants designated by Tenant
and reasonably approved by Landlord (the “Engineers”) to prepare all plans and engineering working drawings relating to the structural, mechanical, electrical, plumbing, HVAC, lifesafety, and sprinkler work of the Tenant
Improvements; provided, however, Tenant may also cause the engineering of some of such plans and drawings to be prepared in design-build format by the applicable subcontractors. The plans and drawings to be prepared by Architect and the Engineers

  
 EXHIBIT B 
  
 - 3 - 

 hereunder shall be known collectively as the “Construction Drawings.” All Construction Drawings shall
comply with industry standards for “Class-A” office building construction, and shall be subject to Landlord’s approval. Tenant and Architect shall verify, in the field, the dimensions and conditions as shown on the relevant portions
of the base Building plans, and Tenant and Architect shall be solely responsible for the same, and Landlord shall have no responsibility in connection therewith. Landlord’s review of the Construction Drawings as set forth in this Section
3, shall be for its sole purpose and shall not imply Landlord’s review of the same, or obligate Landlord to review the same, for quality, design, Code compliance or other like matters. Accordingly, notwithstanding that any Construction
Drawings are reviewed by Landlord or its space planner, architect, engineers and consultants, and notwithstanding any advice or assistance which may be rendered to Tenant by Landlord or Landlord’s space planner, architect, engineers, and
consultants, Landlord shall have no liability whatsoever in connection therewith and shall not be responsible for any omissions or errors contained in the Construction Drawings, and Tenant’s waiver and indemnity set forth in this Lease shall
specifically apply to the Construction Drawings, except to the extent that Landlord has specifically requested a modification to the Construction Drawings as a condition to Landlord’s approval of the Construction Drawings and shall not be
responsible for any omissions or errors contained in the Construction Drawings, and Tenant’s waiver and indemnity set forth in this Lease shall specifically apply to the Construction Drawings. Landlord acknowledges that, to the extent
reasonable given the nature of certain of Tenant’s intended Tenant Improvements, certain phases of the construction of the Tenant Improvements may be conducted on a “design-build” basis. Furthermore, each time Landlord is granted the
right to review, consent or approve any space plan or construction drawings (collectively, “Consent”), such Consent shall be granted unless a Design Problem, as such term is defined below, exists. 
  
 3.2 Final Space Plan. On or before the date set forth in
Schedule 1, attached hereto, Tenant and the Architect shall prepare the final space plan for Tenant Improvements in the Premises (collectively, the “Final Space Plan”), which Final Space Plan shall include a layout and
designation of all offices, rooms and other partitioning, their intended use, and equipment to be contained therein, and shall deliver the Final Space Plan to Landlord for Landlord’s approval. Landlord shall advise Tenant within three (3)
business days after Landlord’s receipt of the Final Space Plan for the Premises if the same is unsatisfactory or incomplete in any respect (based upon a commercially reasonable standard). Landlord shall set forth with reasonable specificity in
what respect the Final Space Plan is unsatisfactory or incomplete. It shall be deemed commercially reasonable for Landlord to disapprove a submitted Final Space Plan for the following reasons: (i) such Final Space Plan would have an adverse effect
on the structural integrity of the Building; (ii) such Final Space Plan fails to comply with applicable Code and or other applicable governmental regulations; (iii) such Final Space Plans would have an adverse effect on the systems and equipment of
the Building; or (iv) such Final Space Plan would have an adverse effect on the exterior appearance of the Building (individually or collectively, a “Design Problem”). If Tenant is so advised, Tenant shall promptly direct the
Architect to cause the Final Space Plan to be revised to correct any deficiencies or other matters Landlord may reasonably require, and immediately thereafter Architect shall promptly re-submit the Final Space Plan to Landlord for its approval. Such
procedure shall continue until the Final Space Plan is approved by Landlord. Landlord’s failure to object to the Final Space Plan within such three (3) business days shall constitute Landlord’s approval of the Final Space Plan. 

 
 3.3 Final Working Drawings. On or before the date set forth
in Schedule 1, Tenant, the Architect and the Engineers shall complete the architectural and engineering drawings for the Premises, and the final architectural working drawings in a form which is complete to allow subcontractors to bid
on the work and to obtain all applicable permits (collectively, the “Final Working Drawings”) and shall submit the same to Landlord for Landlord’s approval. Following Landlord’s approval of the applicable Final Space Plan,
Tenant, the Architect and the Engineers shall complete (except to the extent certain construction is being completed on a “design-build” basis) the Final Working Drawings for the applicable 
  
 EXHIBIT B 
  
 - 4 - 

 phase of the Tenant Improvements in a form which is sufficient to allow contractors to bid on the work and to obtain all
applicable permits and shall submit the same to Landlord for Landlord’s approval. The Final Working Drawings may be submitted in one or more stages at one or more times, provided that Tenant shall ultimately supply Landlord with four (4)
completed copies signed by Tenant of such Final Working Drawings. Landlord shall, within five (5) business days after Landlord’s receipt of all of the Final Working Drawings, either (i) approve the Final Working Drawings, (ii) approve the Final
Working Drawings subject to specified conditions which must be stated in a reasonably clear and complete manner to be satisfied by Tenant prior to submitting the Approved Working Drawings for permits as set forth in Section 3.4, below of this
Tenant Work Letter, to the extent the Final Working Drawings contain a Design Problem, or (iii) disapprove and return the Final Working Drawings to Tenant with requested revisions to the extent the Final Working Drawings contain a Design Problem. If
Landlord disapproves the Final Working Drawings, Tenant may resubmit the Final Working Drawings to Landlord at any time, and Landlord shall approve or disapprove the resubmitted Final Working Drawings, based upon the criteria set forth in this
Section 3.3, within three (3) business days after Landlord receives such resubmitted Final Working Drawings. Such procedure shall be repeated until the Final Working Drawings are approved. Landlord’s failure to timely respond to Tenant
within any applicable response period referenced herein shall be deemed Landlord’s approval of the Final Working Drawings. 
  
 3.4 Permits. The Final Working Drawings which have been approved by Landlord prior to the commencement of the construction of the Tenant
Improvements shall be defined to be the “Approved Working Drawings”. Tenant shall immediately submit the Approved Working Drawings (or cause the same to be submitted) to the appropriate municipal authorities for all applicable
building permits necessary to allow “Contractor,” as that term is defined in Section 4.1, below, to commence and fully complete the construction of the Tenant Improvements (the “Permits”), and, in connection
therewith, Tenant shall coordinate with Landlord in order to allow Landlord, at its option, to take part in all phases of the permitting process and shall supply Landlord, as soon as possible, with all plan check numbers and dates of submittal and
obtain the Permits on or before the date set forth in Schedule 1; provided, however, Tenant may submit preliminary working drawings to the appropriate municipal authorities to expedite the receipt of such Permits. Notwithstanding
anything to the contrary set forth in this Section 3.4, Tenant hereby agrees that neither Landlord nor Landlord’s consultants shall be responsible for obtaining any building permit or certificate of occupancy for the Premises and that
the obtaining of the same shall be Tenant’s responsibility; provided however that Landlord shall, in any event, cooperate with Tenant in executing permit applications and performing other ministerial acts reasonably necessary to enable Tenant
to obtain any such permit or certificate of occupancy. No material changes, modifications or alterations in the Approved Working Drawings may be made without the prior written consent of Landlord, which consent may not be unreasonably withheld,
conditioned or delayed except to the extent necessary to eliminate a Design Problem. 
  
 3.5 Change Orders. In the event Tenant desires to materially change the Approved Construction Drawings, Tenant shall deliver Notice (the “Drawing Change Notice”) of the same to Landlord,
setting forth in detail the changes (the “Tenant Change”) Tenant desires to make to the Approved Construction Drawings. Landlord shall, no later than four (4) business days after receipt of a Drawing Change Notice related to a
Tenant Change affecting the Building structure, and no later than three (3) business days after receipt of the Drawing Change Notice related to a Tenant Change which does not affect the Building structure, either (i) approve the Tenant Change, or
(ii) disapprove the Tenant Change and deliver a Notice to Tenant specifying in reasonably sufficient detail the reasons for Landlord’s disapproval; provided, however, that Landlord may only disapprove of the Tenant Change if the Tenant Change
contains a Design Problem. Any additional costs which arise in connection with such Tenant Change shall be paid by Tenant; provided, however, that to the extent the Tenant Improvement Allowance has not been depleted, such payment shall be made out
of the Tenant Improvement Allowance, but in such event there shall be a corresponding adjustment made to the “Final Costs” and the “Over-Allowance Amount,” as those terms are defined in Section 4.3.1 below, in connection
with the application of the second to last sentence of said Section 4.3.1. 
  
 EXHIBIT B 
  
 - 5 - 

 3.6 Time Deadlines. Tenant and Landlord shall use commercially reasonable, good faith,
efforts and all due diligence to cooperate with the Architect, the Engineers, and each other to complete all phases of the Construction Drawings and the permitting process and to receive the permits, and with Contractor for approval of the
“Cost Proposal,” as that term is defined in Section 4.2 of this Tenant Work Letter, as soon as possible after the execution of the Lease, and, in that regard, shall meet with Landlord on a scheduled basis to be determined by
Landlord, to discuss Tenant’s progress in connection with the same. The applicable dates for approval of items, plans and drawings as described in this Section 3, Section 4, below, and in this Tenant Work Letter are set forth and
further elaborated upon in Schedule 1 (the “Time Deadlines”), attached hereto. Tenant agrees to comply with the Time Deadlines. 
  

3.7 Design Build. As set forth above, to the extent reasonable given the nature of certain of Tenant’s intended Tenant Improvements,
the same may be constructed on a “design-build” basis. All design-build drawings provided by subcontractors shall be subject to Landlord’s approval (which approval shall not be unreasonably withheld, conditioned or delayed) prior to
the start of construction and prior to submittal to the applicable municipal agencies for permits. 
  
 SECTION 4 
  
 CONSTRUCTION OF THE TENANT IMPROVEMENTS 
  
 4.1 Contractor; Subcontractors. 
  
 4.1.1
Contractor. Subject to Tenant’s “Contractor Bidding Election”, Landlord shall retain Reno Contracting as the contractor (the “Contractor”) to construct the Tenant Improvements. Notwithstanding the
foregoing, in the event Tenant delivers written notification of its election to Landlord on or before September 23, 2002 (the “Contractor Bidding Election”), Landlord shall solicit bids from (i) Reno Contracting, and (ii) two other
contractors who are reasonably acceptable to Landlord for the construction of the Tenant Improvements (collectively, the “Bidding Contractors”). Thereafter, pursuant to the procedure set forth in Section 4.2, below, the
Bidding Contractor with the lowest bid (unless otherwise mutually agreed by Landlord and Tenant) shall be retained by Landlord as the Contractor and shall construct the Tenant Improvements. To the extent that Tenant initiates the Contractor Bidding
Election, any delay to the date of Substantial Completion of the Premises resulting from such bidding process shall be deemed a “Tenant Delay” pursuant to Section 5.2 of this Tenant Work Letter. In addition, in the event the
Contractor is not Reno Contracting, to the extent the construction schedule for the construction of the Tenant Improvements (the “Construction Schedule”) by the selected Bidding Contractor is longer than the Construction Schedule
contained in Reno Contracting’s bid, the difference in the number of days of such Construction Schedules shall also be deemed a Tenant Delay. In any event, a list identifying the construction warranties to be provided by the retained Contractor
shall be provided to Tenant promptly following such Contractor’s retention. 
  
 4.1.2 Subcontractors. Contractor shall obtain a minimum of three (3) qualified bids per “major” trade with regard to the construction of the Tenant Improvements. Thereafter, the subcontractors,
laborers, materialmen and suppliers with the lowest bid (unless otherwise mutually agreed by Landlord and Tenant) shall be retained and used by Contractor in the construction of the Tenant Improvements (collectively, the
“Subcontractors”); provided, however, the “major” Subcontractors shall be subject to the approval of Tenant, provided Tenant may only reject a proposed major Subcontractor to the extent Tenant has reasonable grounds to
recommend not using such Subcontractor. 
  
 EXHIBIT B 

 
 - 6 - 

 4.2 Cost Proposal. After the Approved Working Documents are signed by Landlord and Tenant,
Landlord shall provide Tenant with a cost proposal in accordance with the Approved Working Drawings, which cost proposal shall include, as nearly as possible, the cost of all Tenant Improvement Allowance Items to be incurred by Tenant in connection
with the design and construction of the Tenant Improvements (the “Cost Proposal”). The Cost Proposal provided to Tenant for its review and approval shall not, unless otherwise requested by Tenant or with regard to Tenant’s
Particular Features, include any overtime charges from the Contractor or any subcontractors. In addition, the schedule provided to Tenant with regard to the construction of the Tenant Improvements shall not, unless otherwise requested by Tenant or
with regard to Tenant’s Particular Features, include overtime charges and any overtime charges incurred with regard to such construction (except to the extent resulting from any Tenant request for expediting the schedule or relating to
Tenant’s Particular Features) shall be the sole responsibility of Landlord and shall not be deducted from the Tenant Improvement Allowance. For purposes of this Tenant Work Letter, “Tenant’s Particular Features” shall mean
(A) the multi-floor feature staircase and the modifications to the Base, Shell and Core related thereto, (B) the Building lobby, (iii) the showers and lockers, and (iv) any other new feature included in the Approved Working Drawings which is
particular to Tenant’s use (as opposed to being consistent with a general office use). Notwithstanding the foregoing, to the extent the Contractor is selected following the bidding process initiated by Tenant’s Contractor Bidding Election,
the “Cost Proposal” shall, for purposes of this Tenant Work Letter, consist of (i) the bid from the Bidding Contractor that submits the lowest bid (or of the selected Contractor if mutually agreed by Landlord and Tenant), and (ii)
as nearly as possible, the cost of all Tenant Improvement Allowance Items to be incurred by Tenant in connection with the design and construction of the Tenant Improvements. Tenant shall approve the Cost Proposal and shall deliver the Cost Proposal
to Landlord within five (5) business days of receipt of the Cost Proposal from Landlord, and thereafter Landlord shall be released by Tenant to (i) retain the Contractor, and (ii) purchase the items set forth in the Cost Proposal and commence the
construction relating to such items. The date by which Tenant must approve and deliver the Cost Proposal to Landlord shall be known hereafter as the “Cost Proposal Delivery Date.” 
  
 4.3 Construction of Tenant Improvements by Contractor under the
Supervision of Landlord. 
  
 4.3.1 Over-Allowance
Amount. On the Cost Proposal Delivery Date, Tenant and Landlord shall identify the amount (the “Over-Allowance Amount”) equal to the difference between (i) the amount of the Cost Proposal and (ii) the amount of the Tenant
Improvement Allowance. The Over-Allowance Amount shall be delivered from Tenant to Landlord (on a pro-rata basis, based upon the percentage of the Tenant Improvement completed) within fifteen (15) days of Tenant’s receipt of an invoice for such
portion of the Over-Allowance Amount. In the event that, after the Cost Proposal Delivery Date, any revisions, changes, or substitutions shall be made to the Construction Drawings or the Tenant Improvements, any additional costs (above the
cumulative amount of the Tenant Improvement Allowance and the then-existing Over-Allowance Amount) which arise in connection with such revisions, changes or substitutions or any other additional costs shall be added to such Over-Allowance Amount and
shall be delivered from Tenant to Landlord in accordance with the preceding sentence. In addition, if the Final Working Drawings or any amendment thereof or supplement thereto shall require alterations in the Base, Shell and Core (as contrasted with
the Tenant Improvements), and if Landlord (in its commercially reasonable discretion) agrees to any such alterations, and notifies Tenant of the need and cost for such alterations, then Tenant shall pay the cost of such required changes upon receipt
of bills therefor. Tenant shall pay all direct architectural and/or engineering fees in connection therewith, plus a reasonable administration fee to Landlord; provided, however, in no event shall such administrative fee exceed $250.00 with regard
to any particular Base, Shell and Core alteration. 
  
 4.3.2
Landlord’s Retention of Contractor. Landlord shall independently retain Contractor, on behalf of Tenant, to construct the Tenant Improvements in accordance with the Approved Working Drawings and the Cost Proposal and Landlord
shall supervise the construction by Contractor, 
  
 EXHIBIT B

  
 - 7 - 

 and Tenant shall pay from the Tenant Improvement Allowance a construction supervision and management fee (the
“Landlord Supervision Fee”) to Landlord in an amount equal to the product of (i) one percent (1%) and (ii) an amount equal to (A) the Tenant Improvement Allowance, plus (B) the Over-Allowance Amount (as such Over-Allowance Amount
may increase pursuant to the terms of this Tenant Work Letter), less (C) the costs attributable to the Tenant Improvement Allowance Items set forth in Section 2.2(i), (iii) and (v). 
  
 4.3.3 Contractor’s Warranties and Guaranties. Landlord
hereby assigns to Tenant all warranties and guaranties by Contractor relating to the Tenant Improvements and shall cause Tenant to be named a third-party beneficiary under the construction agreement with the Contractor, and Tenant hereby waives all
claims against Landlord relating to, or arising out of the construction of, the Tenant Improvements; provided, however, in connection with such assignment, Landlord shall deliver to Tenant copies of all such Contractor provided warranties within
ninety (90)-days following the Substantial Completion of the Premises. 
  
 4.3.4 Tenant’s Covenants. Tenant hereby indemnifies Landlord for any loss, claims, damages or delays arising from the actions of Architect on the Premises or in the Building. Within ten (10) days after completion of
construction of the Tenant Improvements, Tenant shall cause Contractor and Architect to cause a Notice of Completion to be recorded in the office of the County Recorder of the county in which the Building is located in accordance with Section 3093
of the Civil Code of the State of California or any successor statute and furnish a copy thereof to Landlord upon recordation, failing which, Landlord may itself execute and file the same on behalf of Tenant as Tenant’s agent for such purpose.
In addition, immediately after the Substantial Completion of the Premises, Tenant shall have prepared and delivered to the Building a copy of the “as built” plans and specifications (including all working drawings) for the Tenant
improvements. 
  
 4.3.5 Meetings. Tenant and
Landlord shall hold regular meetings at a reasonable time (but in no event to be required more often than weekly), with the Architect and the Contractor regarding the progress of the preparation of Construction Drawings and the construction of the
Tenant Improvements, which meetings shall be held at a location designated by Tenant on the Project site, or as otherwise mutually agreed by Landlord and Tenant, and Landlord and/or its agents shall receive prior notice of, and shall have the right
to attend, all such meetings, and, upon Landlord’s request, certain of Tenant’s Agents (to the extent reasonably necessary) shall attend such meetings. In addition, minutes shall be taken at all such meetings by Contractor, a copy of which
minutes shall be promptly delivered to Landlord and Tenant. One such meeting each month shall include the review of Contractor’s (and to the extent applicable, Tenant’s) current request for payment. 
  
 SECTION 5 
  
 COMPLETION OF THE TENANT IMPROVEMENTS; 
 LEASE COMMENCEMENT DATE 
  
 5.1 Ready for Occupancy. The Premises shall be deemed “Ready for Occupancy” upon the Substantial Completion of the Premises. For purposes of this Lease, “Substantial
Completion” of the Premises shall occur upon the completion of construction of the Tenant Improvements in the Premises pursuant to the Approved Working Drawings to the extent (i) a Certificate of Occupancy (or, if applicable, a Temporary
Certificate of Occupancy) has been issued for the Premises, (ii) all Building Systems are in a good working order reasonably necessary to support the operation of the Permitted Use from the Premises, and (iii) such Tenant Improvements in the
Premises are materially complete, with the exception of standard industry punch list items. 
  
 EXHIBIT B 
  
 - 8 - 

 5.2 Delay of the Substantial Completion of the Premises. Except as provided in this
Section 5.2, the Lease Commencement Date shall occur as set forth in the Lease and Section 5.1, above. To the extent there shall be a delay or there are delays in the Substantial Completion of the Premises or in the occurrence of any
of the other conditions precedent to the Lease Commencement Date, as set forth in the Lease, as a direct, indirect, partial, or total result of 
  
 5.2.1 Tenant’s failure to comply with the applicable Time Deadlines (it being acknowledged that this Section 5.2.1 shall not apply to Time
Deadline “D” which relates to Contractor’s commencement of construction of the Tenant Improvements); 
  
 5.2.2 Tenant’s triggering of the Contractor Bidding Election; 
  
 5.2.3 Tenant’s failure to timely approve any matter requiring Tenant’s approval; 
  
 5.2.4 A breach by Tenant of the terms of this Tenant Work Letter or the
Lease; 
  
 5.2.5 Changes in any of the Construction Drawings after
disapproval of the same by Landlord or because the same do not comply with Code or other applicable laws; 
  
 5.2.6 Tenant’s request for changes in the Approved Working Drawings; 
  
 5.2.7 Tenant’s requirement for materials, components, finishes or improvements which are not available in a
commercially reasonable time given the anticipated date of Substantial Completion of the Premises, as set forth in the Lease, or which are different from, or not included in, the Standard Improvement Package; 
  
 5.2.8 Changes to the Base, Shell and Core required by the Approved Working
Drawings; or 
  
 5.2.9 Any other acts or omissions of Tenant, or
its agents, or employees; then such delay or delays shall be known collectively as the “Tenant Delays”; provided, however, Tenant Delays shall not include any delays to the extent caused by Landlord or Landlord’s agents;
provided further, that with regard to any Tenant Delays as a result of Section 5.2.4 and Sections 5.2.6 through 5.2.9, no such Tenant Delay shall be deemed to have occurred unless and until Landlord provides written notice of the
anticipated or resulting delay, and Tenant fails to cure or otherwise prevent such delay from occurring within the two (2) days following such notice. In the event of any such Tenant Delays, then notwithstanding anything to the contrary set forth in
the Lease or this Tenant Work Letter and regardless of the actual date of the Substantial Completion of the Premises, (i) the Lease Commencement Date shall be deemed to be the date the Lease Commencement Date would have occurred if no Tenant Delays
had occurred, and (ii) for purposes of Section 3.2 of the Lease, the date the Premises are “Ready for Occupancy” shall be deemed to be the date such “Ready for Occupancy” would have occurred if no Tenant Delays had
occurred. 
  
 SECTION 6 
  
 MISCELLANEOUS 
  
 6.1 Tenant’s Entry Into the Premises Prior to Substantial
Completion. Provided that Tenant and its agents do not interfere with Contractor’s work in the Building and the Premises, Contractor shall allow Tenant access to the Premises up to sixty (60) days prior to the Substantial Completion of
the Premises for the purpose of Tenant installing overstandard equipment or fixtures (including Tenant’s data 
  
 EXHIBIT B 
  
 - 9 - 

 and telephone equipment) in the Premises. Prior to Tenant’s entry into the Premises as permitted by the terms of
this Section 6.1, Tenant shall submit a schedule to Landlord and Contractor, for their approval, which schedule shall detail the timing and purpose of Tenant’s entry. Tenant shall hold Landlord harmless from and indemnify, protect and
defend Landlord against any loss or damage to the Building or Premises and against injury to any persons caused by Tenant’s actions pursuant to this Section 6.1. 
  
 6.2 Freight Elevators. Landlord shall make the elevators (including any freight elevator) reasonably available
to Tenant in connection with initial decorating, furnishing and moving into the Premises. 
  
 6.3 Tenant’s Representative. Tenant has designated Mr. George Evans as its sole representative with respect to the matters set forth in this Tenant Work Letter, who, until further notice to
Landlord, shall have full authority and responsibility to act on behalf of the Tenant as required in this Tenant Work Letter. 
  
 6.4 Landlord’s Representative. Landlord has designated Mr. Randy Jackson as “Project Manager” who shall be responsible for
the implementation of all Tenant Improvements to be performed by Landlord in the Premises. With regard to all matters involving such Tenant Improvements, Tenant shall communicate with the Project Manager rather than with the Contractor. Landlord
shall not be responsible for any statement, representation or agreement made between Tenant and the Contractor or any subcontractor. It is hereby expressly acknowledged by Tenant that such Contractor is not Landlord’s agent and has no authority
whatsoever to enter into agreements on Landlord’s behalf or otherwise bind Landlord. The Project Manager will furnish Tenant with notices of substantial completion, cost estimates for Above Standard Tenant Improvements, Landlord’s
approvals or disapprovals of all documents to be prepared by Tenant pursuant to this Tenant Work Letter and changes thereto. 
  
 6.5 Labor Harmony. Tenant shall use commercially reasonable efforts to use contractors, services, workmen, labor, materials or equipment in
a manner that minimizes any disturbance to labor harmony with the workforce or trades engaged in performing other work, labor or services in or about the Building or the Common Areas. 
  
 6.6 Time of the Essence in This Tenant Work Letter. Unless otherwise indicated, all references herein to a
“number of days” shall mean and refer to calendar days. In all instances where Tenant is required to approve or deliver an item, if no written notice of approval is given or the item is not delivered within the stated time period, at
Landlord’s sole option, at the end of such period the item shall automatically be deemed approved or delivered by Tenant and the next succeeding time period shall commence. 
  
 6.7 Tenant’s Lease Default. Notwithstanding any provision to the contrary contained in this Lease, if an
event of an economic default as described in the Lease, or an economic default by Tenant under this Tenant Work Letter, has occurred at any time on or before the Substantial Completion of the Premises, then (i) in addition to all other rights and
remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to withhold payment of all or any portion of the Tenant Improvement Allowance and/or Landlord may cause Contractor to cease the construction of the Premises (in which
case, Tenant shall be responsible for any delay in the Substantial Completion of the Premises caused by such work stoppage as set forth in Section 5 of this Tenant Work Letter), and (ii) all other obligations of Landlord under the terms of
this Tenant Work Letter shall be forgiven until such time as such default is cured pursuant to the terms of the Lease. 
  
 EXHIBIT B 
  
 - 10 - 

 SCHEDULE 1 TO EXHIBIT B 
  
 TIME DEADLINES 
  

					
	 Dates

	  	 Actions to be Performed

	 A.
	  	September 18, 2002	  	Final Space Plan to be completed by Tenant and delivered to Landlord.
			
	 B.
	  	October 18, 2002	  	Tenant to submit Construction Drawings (in a form reasonably complete to initiate the permitting process) to the City to commence permitting process.
			
	 C.
	  	October 30, 2002	  	Tenant to deliver Final Working Drawings to Landlord.
			
	 D.
	  	November 7, 2002	  	Contractor shall commence construction of the Tenant Improvements.
			
	 E.
	  	December 10, 2002	  	Tenant to deliver Permits to Contractor.
			
	 F.
	  	Five (5) business days after the receipt of the Cost Proposal by Tenant	  	Tenant to approve Cost Proposal and deliver Cost Proposal to Landlord.

  
 SCHEDULE 1 TO

 EXHIBIT B 
  
 - 1 - 

 SCHEDULE 2 TO EXHIBIT B 
  
 BUILDING STANDARD TENANT IMPROVEMENTS 
  
 [ATTACHED] 
  
 SCHEDULE 2 TO 
 EXHIBIT B 
  
 - 1 - 

 SCHEDULE 2 
  
 STANDARD IMPROVEMENT PACKAGE 
  

			
	 TENANT IMPROVEMENT STANDARD SPECIFICATIONS
	 	KILROY CARMEL CENTER

			
	 CARRIER JOHNSON PROJECT NO. 4246.00
	 	May 4, 1999 (DRAFT)

  

	1.0	PARTITIONS 

  

	1.1	1 Hour Partition: (One-Hour Rated Assembly) 

  

	 	a.	Provide metal studs at walls & sub-ceiling (where indicated as a “tunnel” assembly): size, gauge and spacing per details illustrated on drawings.

  

	 	b.	5/8” Type “X” gypsum board, one layer each side, attached to studs with screws as required by code and as recommended by the Gypsum Association.

  

	 	c.	Continuous fire tape at all joints to maintain fire rated assembly. 

  

	 	d.	All physical penetrations through fire rated assembly shall be sealed with UL Listed and approved sealant compounds. 

  

	 	e.	All mechanical duct penetrations through one-hour assemblies shall be fitted with 20-minute rated combination smoke/fire dampers. Such assemblies shall be tied to the central fire
alarm system as required by code. 

  

	 	f.	Diagonal bracing shall be installed per details illustrated on drawings. 

  

	 	g.	Install metal casing beads at all exposed corners and edges, as applicable. 

  

	 	h.	All joints and surfaces shall be taped and sanded smooth to receive primer and paint or wallcovering (Note: no texture on painted walls; all painted surfaces shall be
“smooth”). 

  

	1.2	2 Hour Partition: (Two-Hour Rated Assembly) 

  

	 	a.	Provide metal studs at walls & sub-ceiling (where indicated as a “tunnel” assembly): size, gauge and spacing per details illustrated on drawings.

  

	 	b.	5/8” Type “X” gypsum board, two layers each side, attached to studs with screws as required by code and as recommended by the Gypsum Association. Second layer of
gypsum board shall be installed at right angles over the first layer with joints staggered. 

  

	 	c.	Continuous fire tape at all joints to maintain fire rated assembly. 

  

	 	d.	All physical penetrations through fire rated assembly shall be sealed with UL Listed and approved sealant compounds. 

  

	 	e.	All mechanical duct penetrations through one-hour assemblies shall be fitted with 90-minute rated combination smoke/fire dampers. Such assemblies shall be tied to the central fire
alarm system as required by code. 

  

	 	f.	Diagonal bracing shall be installed per details illustrated on drawings. 

  

	 	g.	Install metal casing beads at all exposed corners and edges, as applicable. 

  

	 	h.	All joints and surfaces shall be taped and sanded smooth to receive primer and paint or wallcovering (Note: no texture on painted walls; all painted surfaces shall be
“smooth”). 

  

 SCHEDULE 2 
 -1- 

			
	 TENANT IMPROVEMENT STANDARD SPECIFICATIONS
	  	KILROY CARMEL CENTER
	

	 CARRIER JOHNSON PROJECT NO. 4246.00
	  	May 4, 1999 (DRAFT)

  

	1.3	Standard Interior Office Partition: 

  

	 	a.	Provide 2-1/2”-25 gage metal studs at 16” O.C. at walls (or as otherwise noted) per details illustrated on drawings. 

  

	 	b.	5/8” standard gypsum board, one layer each side, attached to studs with screws as required by code and as recommended by the Gypsum Association. 

  

	 	c.	Partition height shall extend to underside of suspended acoustical ceiling grid (+10’-0” AFF, nominal); or shall extend 6” above ceiling and plane. Refer to wall
types and referenced details illustrated on drawings. 

  

	 	d.	Partitions terminating at curtainwall and/or storefront framing systems shall receive a continuous neoprene sound gasket between the million and the metal wall trim cap.

  

	 	e.	Diagonal bracing shall be installed per details illustrated on the drawings. 

  

	 	f.	Install metal casing beads at all exposed corners and edges, as applicable. 

  

	 	g.	All joints and surfaces shall be taped and sanded smooth to receive primer and paint or wallcovering (Note: no texture on painted walls; all painted surfaces shall be
“smooth”). 

  

	1.4	Standard Interior Office Acoustical Partition: 

  

	 	a.	Provide 2-1/2”-25 gage metal studs at 16” O.C. at walls (or as otherwise noted) per details illustrated on drawings. 

  

	 	b.	5/8” standard gypsum board, one layer each side, attached to studs with screws as required by code and as recommended by the Gypsum Association. 

  

	 	c.	Partition height shall extend from floor slab to underside of metal or roof deck above (+13’-6” AFF, nominal). Refer to wall types and referenced details illustrated on
drawings. 

  

	 	d.	Partitions terminating at curtainwall and/or storefront framing systems shall receive a continuous neoprene sound gasket between the mullion and the metal wall trim cap.

  

	 	e.	Provide continuous bead of acoustical sealant between bottom edge of gypsum board panels and floor slab. Cut gypsum board panels at top of wall to fit undulations of metal deck
structures and seal all gaps with drywall taping compound. 

  

	 	f.	Install R-8 unfaced fiberglass sound batts in cavity between studs, full height of partition. 

  
 SCHEDULE 2 
  -
 2
- 

			
	 TENANT IMPROVEMENT STANDARD SPECIFICATIONS
	  	KILROY CARMEL CENTER
	

	 CARRIER JOHNSON PROJECT NO. 4246.00
	  	May 4, 1999 (DRAFT)

  

	2.0	COLUMN COVERS, CORE WALLS, PERIMETER SOFFITS 

  

	 	a.	Provide either 1-1/2” or 2-1/2”-25 gage metal studs at 16” O.C. (or as otherwise noted or configured) per details illustrated on drawings. 

 

	 	b.	Furnish and install 5/8” standard gypsumboard, one layer around interior and perimeter columns, attached to studs with screws as required by code and as recommended by the
Gypsum Association. 

  

	 	c.	Provide and install R-8 unfaced sound batt insulation at all furred columns where plumbing lines occur, typical. 

  

	 	d.	All joints and surfaces shall be taped and sanded smooth to receive primer and paint or wallcovering (Note: no texture on painted walls; all painted surfaces shall be
“smooth”). 

  

	3.0	DOORS, FRAMES, HARDWARE 

  

	3.1	One-Hour Corridor Door Assembly: 

  

	 	a.	Doors shall be Weyerhaeuser Architectural Doors, Solid Core Wood Veneer Door with matching edges, 20 minute rated, 3’-0” x 8’-10” x 1-3/4” (U.N.O.).
Doors shall conform to A.W.I. standards and carry a lifetime guarantee. Doors shall be pre-finished with Weyerhaeuser Plain Sliced Cherry with Standard Finish 28-95 “Toast”. All applicable listing labels shall be provided and securely
fastened to doors. 

  

	 	b.	Aluminum door frames shall be Western Integrated Manufacturing, throat size as varies with partition type and thickness, minimum 20 minute rated with applicable listing
labels provided and securely fastened to frame. Color: Black Anodized. 

  

	 	c.	Hardware: 

  

	 	i.	Single 

  
 4 each Butts 
 1 each Lockset 
 1 each Closer 
 1 each Stop 
 1 each Smokeseal 
  
 SCHEDULE 2

  -
 3
- 

			
	 TENANT IMPROVEMENT STANDARD SPECIFICATIONS
	  	KILROY CARMEL CENTER
	

	 CARRIER JOHNSON PROJECT NO. 4246.00
	  	May 4, 1999 (DRAFT)

  

	 	ii.	Pair 

  
 8 each Butts 
 2 each Closer 
 1 each Lockset 
 1 each Dummy 
 1 pair Flushbolt 
 1 each Coordinator 
 1 each Astragal 
 2 each Stop 
 2 each Smokeseal 
 1 each Dustproof Strike

 2 each Electro Magnetic Hold Open 
  

	3.2	Interior Door Assembly: 

  

	 	a.	Doors shall be Weyerhaeuser Architectural Doors, Solid Core Wood Veneer Door with matching edges. 3-0” x 8’-10” x 1-3/4” (U.N.O.). Doors shall conform to
A.W.I. standards and carry a lifetime guarantee. Doors shall be pre-finished with Weyerhaeuser Plain Sliced Cherry with Standard Finish 28-95 “Toast”. All applicable listing labels shall be provided and securely fastened to doors.

  

	 	b.	Aluminum door frames shall be Western Integrated Manufacturing, throat size as varies with partition type and thickness. Color: Black Anodized. 

  

	 	c.	Hardware: 

	 	i.	Single 

  
 4 each Butts 
 1 each Latchset 
 1 each Stop 
  

	 	ii.	Single Locking 

  

	 	a.	All the above. In place of latchset, provide lockset. 

  

	 	iii.	Single with Closer 

  

	 	a.	All the above, plus closer. 

  
 SCHEDULE 2 
  -
 4
- 

			
	 TENANT IMPROVEMENT STANDARD SPECIFICATIONS
	  	KILROY CARMEL CENTER
	

	 CARRIER JOHNSON PROJECT NO. 4246.00
	  	May 4, 1999 (DRAFT)

  

	 	iv.	Pair 

  
 8 each Butts 
 2 each Closer 
 1 each Latchset 
 1 each Dummy 
 1 pair Flushbolt 
 1 each Coordinator

 1 each Astragal 
 2 each Stop

 1 each Dustproof Strike 
  

	4.0	SUSPENDED GRID CEILINGS 

  

	4.1	General Installation Requirements: 

  

	 	a.	Install ceiling under the supervision of an experienced superintendent. Consult with and coordinate installation with other trades. Install ceiling using laser level within a
tolerance of 1/8” in 12 feet in any direction. 

  

	 	b.	Pattern: Unless otherwise indicated or specified, install ceilings in a regular pattern without border, joint lines parallel to walls. Install acoustical units symmetrically about
centerlines of each room or space (unless specifically noted otherwise on drawings), avoiding narrow units at walls. 

  

	 	c.	Framing for Lighting and Mechanical Fixtures: Obtain necessary data from other trades and provide additional hanger wire and framing in suspended grids as required to support
lighting and mechanical fixtures. 

  

	 	d.	Lateral Bracing: Lateral bracing for suspended ceiling must be provided (UBC Table 23-J). Where ceiling loads are less than 5PSF and not supporting interior partitions, ceiling
bracing shall be provided by four (4) No. 12 gauge wires secured to the main runner within 2 inches from the cross runner intersection and splayed 90 degrees from each other at an angle not exceeding 45 degrees from the plane of the ceiling. These
horizontal restraint points shall be placed 12 feet o.c. in both directions with the first point within 4 feet from each wall. Attachment of the restraint wires to the structure above shall be adequate for the load imposed. 

 
 SCHEDULE 2 
  -
 5
- 

			
	 TENANT IMPROVEMENT STANDARD SPECIFICATIONS
	  	KILROY CARMEL CENTER
	

	 CARRIER JOHNSON PROJECT NO. 4246.00
	  	May 4, 1999 (DRAFT)

  

	 	e.	Hanger Wires: Space wires at maximum 48” centers along main tees and connect to structure above. Provide: 2 safety wires per mechanical diffuser, 2 per light fixture and 4 at
main runner within 3” of fixture. 

  

	 	f.	Ceiling Offsets: Provide trim pieces and/or accessories where illustrated on drawings or as necessary to properly finish or transition offsets or ceiling breaks.

  

	 	g.	Seismic Bracing: Provide splayed bracing wires as shown and required by the Uniform Building Code. Provide compression struts at 12’-0” o.c., both directions fastened to
the main runner and a structural member above. Repair, Clearing and Completion: Remove and replace all discolored, broken or damaged materials. Completed ceilings shall present a smooth level surface free of edge or corner offsets, cupping,
scratches, gouges or other defects. Clean exposed surfaces and remove foreign matter. 

  

	4.2	2 x 2 Acoustical Ceiling: 

  

	 	a.	Suspension Grid: Armstrong, “Suprafine” XL 9/16” Exposed Tee. 

  

	 	b.	Ceiling Tile: Armstrong, “Hi-LR Ultima” RH90 2 x 2 #1792 beveled regular lay in. 

  

	 	c.	Ceiling heights vary and are as noted on plans. 

  

	4.3	Drywall Ceiling: 

  

	 	a.	Carrying channel at 24” on center. 

  

	 	b.	1-1/2” cold-rolled carrying channel at 48” on center with hanger wire spaced a maximum of 48” on center along carrying channel. 

  

	 	c.	5/8” gypsum wallboard. 

  

	 	d.	Seismic bracing as required per the Uniform Building Code and as noted on drawings. 

  

	 	e.	All joints and surfaces shall be taped and sanded smooth to receive primer and paint. (Note: no texture; all painted surfaces shall be “smooth”). 

 

	 	f.	Locate all mechanical and electrical equipment requiring access in 2’ x 2’ lay-in ceiling to avoid access doors in gypsum board ceilings, where possible.

  
 SCHEDULE 2 
  -
 6
- 

			
	 TENANT IMPROVEMENT STANDARD SPECIFICATIONS
	  	KILROY CARMEL CENTER
	

	 CARRIER JOHNSON PROJECT NO. 4246.00
	  	May 4, 1999 (DRAFT)

  

	5.0	FINISHES 

  

	 	NOTE:	Provide cuttings, brush-outs, samples, etc. of actual dye lots, or production runs for Architect’s and Interior Designer’s approval.

  

	5.1	Paint: 

  

	 	a.	Provide paint color as specified on finish plans – one (1) coat primer base, two (2) coats flat water base latex acrylic. 

  

	5.2	Carpet: 

  

	 	a.	Standard multicolored loop tenant improvement carpet shall be: 

 Face weight: 32 oz; 
 Guage: 1/10 inch; 
 Backing: Action Bac. Direct glue installation. 
  

	 	b.	Standard cut pile tenant improvement carpet shall be: 

 Face weight: 32 oz; 
 Guage: 1/10 inch; 
 Backing: Action Bac. Direct glue installation. 
  

	5.3	Vinyl Composition Tile: 

  

	 	a.	Vinyl composition tile (VCT) shall be: Armstrong, “Imperial Texture”. Color as selected from standard range. 

  

	5.4	Resilient Sheet Flooring: 

  

	 	a.	Resilient sheet flooring shall be: Armstrong. “Standard Excelon”. Colors as selected from standard range. 

  

	5.5	Rubber Base: 

  

	 	a.	Rubber base shall be: Roppie. 4” topset: straight base at carpeted areas and coved at all hard surface areas. Colors as selected from standard range.

  
 SCHEDULE 2 
  -
 7
- 

			
	 TENANT IMPROVEMENT STANDARD SPECIFICATIONS
	  	KILROY CARMEL CENTER
	

	 CARRIER JOHNSON PROJECT NO. 4246.00
	  	May 4, 1999 (DRAFT)

  

	6.0	MILLWORK 

  

	11.0	General: 

  

	 	a.	See millwork plans, details and notes for configuration and fabrication specifications. 

  

	 	b.	Millwork shops drawings shall be WIC approved. 

  

	 	c.	All fabrications shall conform to WIC standards for “Premium Grade” U.N.O. and be certified as such. 

  

	 	d.	Submit shop drawings, samples, finishes for Architect’s and Interior Designer’s approval prior to fabrication and installation. 

  
 SCHEDULE 2 
  -
 8
- 

			
	 KILROY CARMEL CENTER
	  	BUILDING STANDARD TENANT
	 SAN DIEGO, CA
	  	IMPROVEMENT SPECIFICATION

  
 SECTION 15300 – FIRE
PROTECTION SYSTEMS 
  

	A.	GENERAL 

  
 All work shall be in strict conformance with but not limited to: 
  

Uniform Plumbing Code 
 Uniform Building Code 
 Uniform Fire Code 
 Local Fire Department Regulations 
 National Fire Protection Association 
 All other Authorities Having Jurisdiction 

 

	B.	SCOPE OF WORK 

  

	 	1.	Work included: 

  

	 	a.	This contract shall include all work necessary for a complete automatic fire sprinkler system for the tenant improvement of the shell building. 

  

	 	b.	The shell building includes necessary standpipes, tamper switches, flow and alarm switches and alarm bell. 

  

	B.	SYSTEM REQUIREMENTS 

  

	 	1.	The entire tenant improvement of the building shall be provided with a hydraulically calculated automatic fire sprinkler system for each occupancy classification.

  

	 	2.	Minimum densities for areas of coverage shall be determined by the City of San Diego Fire Department. Hydraulically calculate water protection systems. Form sheets, summary sheets,
detailed work sheets and graphs shall be in strict accordance with the required and advisory provisions of NFPA 13, 7-3. 

  

	 	3.	Tenant spaces shall be sized for Ordinary Hazard Group 1. 

  

	 	4.	The system shall be designed for earthquakes and shall include all materials necessary to provide the system complete and ready for use. Design and install the system to give full
consideration to blind spaces, piping, electrical equipment, ductwork and other construction and equipment in accordance with detailed drawings to be submitted for approval. 

  

	 	5.	Devices and equipment for fire protection service shall be UL listed and FM approved for the specific purpose for which the item is used in sprinkler systems.

  

					
	 PRELIMINARY DRAFT
	  	 SCHEDULE 2
	  	DIVISION 15 – FIRE PROTECTION
	 May 4, 1999
	  	 -9-
	  	PAGE 15300 – 1

			
	 KILROY CARMEL CENTER
	  	BUILDING STANDARD TENANT
	 SAN DIEGO, CA
	  	IMPROVEMENT SPECIFICATION

  

	C.	MATERIALS 

  

	 	1.	Buned pipe and fittings: N/A 

  

	 	2.	Above ground pipe and fittings: 

  

	 	a.	2-inch and smaller: ASTM A53 or ASTM A135 Schedule 40 black steel pipe with ANSI B16.3 Class 150 malleable iron threaded fittings. Dynaflow or equal. 

  

	 	b.	2 1⁄2-inch and larger: ASTM A135 Schedule 40 black steel pipe with ANSI B16.3 Class 150 malleable iron threaded fittings. Dynaflow pipe, or rolled groove pipe with mechanical
joint grooved coupling fittings; or ASTM A135 Schedule 10 welded steel pipe with rolled groove ends and mechanical joint grooved coupling fittings. Cut grooving of pipe will not be permitted. 

  

	 	c.	Flanged fittings: ANSI B16.1 Class 125 cast iron. 

  

	 	d.	Flanges: ANSI B16.1 Class 125 cast iron. 

  

	 	3.	Gate Valves: 

  

	 	a.	4-inch and larger: UL listed and labeled, FM approved, 175 psi OS&Y type, iron body, bronze mounted. 

  

	 	b.	3-inch and smaller. UL listed and labeled, FM approved, 175 psi OS&Y type, bronze body gate with solid wedge. 

  

	 	4.	Check Valves: UL listed and labeled, FM approved, 175 psi iron body, bronze mounted, horizontal swing check valve with bolted bonnet and flanged end connections. Check valves shall
be designed for replacement of internal parts without removal of valve body from piping with the exception that wafer check valves may be used with freestanding Fire Department Connections. 

  

	 	5.	Butterfly Valves: UL listed and labeled, FM approved, 175 psi bronze body, threaded ends, stainless steel disc and stain, two inch maximum pipe size with integral tamper switch, and
geared slow-close mechanism. 

  

	 	6.	Drain Valve: UL listed and labeled, FM approved, 175 psi bronze body gate valve, OS & Y type, solid wedge bronze disc, or class 150, 400 lb. WWP, conventional port, bronze,
two-piece construction ball valve. 

  

	 	7.	Sprinkler Heads: 

  

	 	a.	Spacing and number of heads shall comply with recommendations of NFPA 13 for type of occupancy involved. 

  

	 	b.	Sprinkler Heads: UL listed and labeled and FM approved for installation in the hazard classification as indicated and by the agencies listed above: 165 degree F rated fusible link,
1⁄2 inch orifice, standard response. 

  

					
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	  	IMPROVEMENT SPECIFICATION

  

	 	1.	Finished ceiling Areas: Recessed, chrome-plated brass pendant heads, matching chrome plated adjustable metal escutcheon. 

  

	 	2.	Exposed Piping: Upright or pendant type; natural brass finish. 

  

	D.	EQUIPMENT 

  

	 	1.	N/A 

  
 END OF SECTION 
  

					
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	 KILROY CARMEL CENTER
	  	BUILDING STANDARD TENANT
	 SAN DIEGO, CA
	  	IMPROVEMENT SPECIFICATION

  
 SECTION 15400 – PLUMBING
SYSTEMS DESCRIPTIONS 
  

	A.	GENERAL 

  
 All work shall be in strict conformance with but not limited to: 
  

Uniform Plumbing Code 
 Uniform Building Code 
 Uniform Fire Code 
 Local Fire Department Regulations 
 National Fire Protection Association 
 All other Authorities Having Jurisdiction 

 

	B.	SCOPE OF WORK 

  

	 	1.	Work included: 

  

	 	a.	This contract shall cover all plumbing systems for the tenant improvement design. Utilities shall be connected to and extended from points-of-connection from the original building
shell. 

  

	 	b.	Piped utilities required by the installation of HVAC equipment/systems for the tenant improvements to the building. 

  

	 	2.	Work Excluded: 

  

	 	a.	Plumbing sanitary and vent mains, potable water mains, condensate drains for building shell rooftop units, roof and storm water mains, shell toilet rooms and janitors closets.

  

	B.	SYSTEM REQUIREMENTS 

  

	 	1.	Principal systems to be included in the tenant design: 

  

	 	a.	Convenience sinks required by tenant for lunch/coffee rooms. With local instahot water heater. 

  

	 	b.	Potable cold water for drinking fountain system throughout the building. 

  

	 	c.	All drain piping from any HVAC equipment installed as part of the tenant improvement that would generate condensate. 

  

	 	d.	An hydraulically calculated automatic fire sprinkler system, extended from the building shell to be installed in the tenant improvement ceilings. 

  

	 	2.	Materials: 

  

	 	a.	Soil Waste and Vent Above Ground: Service-weight, no-hub cast-iron pipe and fittings. 

  

					
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	 SAN DIEGO, CA
	  	IMPROVEMENT SPECIFICATION

  

	 	b.	Soil, Waste and Vent Below Ground and to 5’-0” Outside of Building: Service-weight, cast-iron hub & spigot pipe and fittings. 

  

	 	c.	Water and Condensate Drain Piping Above Ground: Type “M” hard-drawn copper type, ASTM B88, and wrought copper fittings, ANSI B1 6.22. All hot water supply piping shall be
insulated with 1 inch thick fiberglass insulation for sizes up to 2-1/2 inch size, 1-1/2 inch thick above 2-inch size piping. Condensate drain piping above ceilings shall be insulated. 

  

	 	d.	Water Piping Below Ground 4-inches and Smaller: Type “K” hard-drawn copper tubing, ASTM B88, and wrought copper fittings ANSI B 18.22, silver brazed joints.

  

	 	e.	Natural Gas Piping: Buried piping shall be Polyethylene (P.E.) per ASTM D2513, Above grade shall be Schedule 40 black steel pipe per ASTM D2513. 

  

	 	f.	Indirect Drains: Type “M” copper fittings, ANSI B16.22, solder joint type. Insulate with Manville Micro-Lok 650AP. 

  

	 	3.	Equipment 

  

	 	a.	N/A 

  

	 	4.	Plumbing Fixtures: 

  

	 	a.	Sinks as required and described in architectural floor plans. If no description is provided, install 20 gage stainless steel sink with standard single lever faucet.

  

	 	b.	Electric Water Cooler: Barrier-free, wall hung water cooler with push bar control and equipped for handicap usage. 

  

	 	5.	Drains: 

  

	 	a.	N/A 

  
 END OF SECTION 
  

					
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	 KILROY CARMEL CENTER
	  	BUILDING STANDARD TENANT
	 SAN DIEGO, CA
	  	IMPROVEMENT SPECIFICATION

  
 SECTION 15800 – HEATING
VENTILATING AND AIR CONDITIONING SYSTEMS DESCRIPTIONS 
  

	A.	CODES AND REGULATIONS 

  
 All work shall be in strict conformance with but not limited to: 
  

Uniform Mechanical Code – UMC 1997 
 Uniform Building Code – UBC 1997 
 CEC Title 24 Energy Standards 
 Fire Department Regulation 
 City of San Diego Requirements 
 All other Authorities Having Jurisdiction 
  

	B.	SCOPE OF WORK 

  

	 	1.	Tenant Improvement (TI) Work: 

  

	 	a.	All main air moving equipment including all air handling units, exhaust fans, hot water boilers and pumps, variable air volume with hot water reheat terminals for the building core
and all associated vertical ductwork and heating hot water piping, and DDC control backbone will be installed as part of the shell work. Five rooftop VAV units, one per floor are provided with cooling only, and are based on a nominal 350 st/ton.

  

	 	b.	Tenant shall provide all extensions of duct, piping, electronic VAV boxes, DDC thermostats, control power and wiring, smoke/fire dampers, diffusers and grilles for all tenant
improvements. Any specialty tenant requirement, such as Kitchen exhaust will be designed and installed during the TI work. 

  

	 	c.	All controls associated with the operation of the VAV boxes, rehat coils and equipment added as TI work including sub-control panels and thermostats required for the environmental
controls will be done as part of the TI work. 

  

	C.	ENVIRONMENTAL DESIGN CONDITIONS 

  
 The following criteria will be used for sizing the heating and cooling plants: 
  

	 	1.	Outdoor Ambient Design Conditions: 

  

			
	 Summer (mean 0.5%)
	  	 83°F dB 69°F wB
 13°F dB outdoor daily
range

	 Winter (0.2%)
	  	42°F dB
	
	Note 88°F dB, 70°F wB is the 0.1% mean temperature: we assume the less conservative 0.5% temperature is acceptable for this project.

  

	 	2.	Indoor Conditions for Air Conditioned Area: 

  

					
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	 SAN DIEGO, CA
	  	IMPROVEMENT SPECIFICATION

  

			
	 All floors
	  	 70°F dB ± 2°F dB (winter)
 72°F dB
± 2°F dB (Summer)
 80% RH (no low and humidity control)

		
	 Electrical Telecommunication Rooms:
	  	No Temperature Control – Ventilation Only – if Tenant Equipment mounted within a room requires a controlled environment, it shall be provided as part of the TI.

  

	D.	VENTILATION AIR REQUIREMENTS 

  
 Outdoor air for ventilation will be based on the American Society of Heating Ventilation and Air Conditioning Engineers (ASHRAE) Standard 62-1989.
Ventilation for Acceptable Indoor Air Quality. 
  

	E.	ENERGY USE AND CONSERVATION 

  
 The Energy Efficiency Standard, Title 24, will be used as the basis of the design. 
  

	E.	HEATING HOT WATER SYSTEM 

  

	 	1.	The heating for the building will be by hot water, generated on site by a rooftop boiler plant. The boilers, pumps and controls will be installed as part of the building shell,
along with valved riser system to each floor. 

  

	 	2.	Tenant improvement shall extend the heating hot water system to heating coils at each VAV terminal with automatic flow control valves, two way solenoids and a three way valve at
four of the most remote VAV boxes on each floor. 

  

	 	3.	Heating hot water piping shall be type M copper with wrot fittings, insulated. 

  

	G.	MISCELLANEOUS VENTILATION/EXHAUST SYSTEMS 

  
 The following exhaust system will be installed within the scope of the shell building design, it is assumed that ambient outside air (1) and building air
(2) (3) shall provide makeup air to the exhausted area: 
  

	 	(1)	Elevator Machinery Room on roof. 

  

	 	(2)	Electrical/telecom Rooms. 

  

	 	(3)	Janitors closets. 

  

					
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	 SAN DIEGO, CA
	  	IMPROVEMENT SPECIFICATION

  

	H.	TI CONTROLS 

  

	1.	An electronic direct digital control (DDC) system shall incorporate stand alone, remote control units at each of the new air handling units. Electronic digital control will be
provided at the zone level. 

  

	2.	The controls will automatically operate the HVAC system and provide the necessary changeover commands for the occupied and non-occupied temperature and ventilation schedules. The
system shall provide the necessary monitoring, alarm, and by-pass for efficient energy management. 

  

	I.	Specification Sections 

  
 The following specification sections will be provided: 
  

	 	1.	Division 15 

  

	 	a.	Section 15010 Mechanical General Requirements 

  

	 	b.	Section 15060 Hangers and Supports 

  

	 	c.	Section 15090 Mechanical Identification 

  

	 	d.	Section 15240 Vibration and Seismic Isolation 

  

	 	e.	Section 15250 Mechanical Insulation 

  

	 	f.	Section 15500 HVAC Pumps, Piping, Valves, and Accessories 

  

	 	g.	Section 15850 Ductwork and Accessories 

  

	 	h.	Section 15900 HVAC Controls 

  

	 	i.	Section 15990 Testing, Adjusting and Balancing 

  
 END OF SECTION 
  

					
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	 Section 18050
	  	BASIC ELECTRICAL REQUIREMENTS

  

	PART 1	GENERAL REQUIREMENTS 

  

	1.1	RELATED DOCUMENTS 

  

	1.1.1	The general conditions and Division 1 are part of this section and the contract for this work and apply to this section as fully as if repeated herein. This section, 18050, applies
to all Division 18 categories. 

  

	1.1.2	Reference to other sections: The applicable requirements from other Division 18 sections shall form a part of the electrical work and each section shall be referenced to the other
sections. 

  

	1.2	EXPLANATION OF DRAWINGS 

  

	1.2.1	These construction documents are intended to be diagrammatic and reflect the scope, quality, and character of the work to be performed: all miscellaneous materials and work, though
not specifically mentioned, shall be furnished and installed by the Contractor. 

  

	1.2.2	The Contractor shall confirm sizes, dimensions, weights and locations of all equipment prior to installation. Dimensioned architectural drawings shall take precedence over
diagrammatic layouts shown on these contract documents. 

  

	1.2.3	The specifications and the drawings are an integral document and shall be considered complementary to each other, in the case of a conflict between the specifications and the
drawings, the more constricting condition shall be enforced. 

  

	1.2.4	The Contractor shall be responsible for reporting any discrepancies, errors, or omissions noted prior to bid. 

  

	1.2.5	It is the intent of the drawings to indicate schematic routing and placement of devices, fixtures, equipment and conduit. Exact locations shall be dimensioned on these documents or
in other trade documents (architectural, mechanical, etc.). Offsets, elbows, or extensions shall be furnished and installed by the Contractor as necessary to avoid structure, piping, clearances and to provide a complete and workmanlike installation.

  

	1.3	QUALITY ASSURANCE 

  

	1.3.1	All work, material or equipment shall comply with the codes, ordinances and regulations of the local government having jurisdiction, including the regulations of serving utilities
and any participating government agencies having jurisdiction. 

  

	1.3.2	All electrical work shall comply with the latest edition under enforcement of the following codes and standards or other regulations which may apply: 

  

	 	1.	American Disabilities Act 

  

	 	2.	American National Standards Institute 

  

	 	3.	American Society for Testing and Materials 

  

	 	4.	Institute of Cable Engineers Association 

  

					
	 Section 18050
	  	SCHEDULE 2	  	Basic Electrical Requirements
	 Master Specs
	  	-17-	  	18050-1

	 	5.	Institute of Electrical and Electronic Engineers 

  

	 	6.	Local Code Enforcement Agency Requirements 

  

	 	7.	National Electrical Code 

  

	 	8.	National Electrical Contractor’s Association 

  

	 	9.	National Electrical Manufacturer’s Association 

  

	 	10.	National Electrical Testing Association 

  

	 	11.	National Fire Protection Association 

  

	 	12.	Underwriters’ Laboratories, Inc. 

  

	 	13.	Uniform Building Code 

  
 No requirements of these drawings and specifications shall be construed to void any of the provisions of the above standards. Any conflicts or changes
required to the contract documents in order to obtain compliance with applicable codes shall be brought to the immediate attention of the Owner’s Representative by the Contractor. 
  

	1.3.3	All items shall be listed by Underwriter’s Laboratories and shall bear the U.L. label. 

  

	1.3.4	Equipment shown to scale is approximate only and based upon a general class of equipment specified. The Contractor shall verify all dimensions and clearances prior to commencement
of work. 

  

	1.3.5	The Contractor shall verify all points of connection with the manufacturer’s requirements, instructions, or recommendations prior to installation. The actual dimensions,
weights, clearance requirements and installation requirements shall be verified and coordinated by the Contractor. 

  

	1.4	SUBMITTALS 

  

	1.4.1	Shop drawings for materials, equipment, devices, fixtures, and systems shall be submitted by the Contractor for review within 30 days after award of the contract. In addition to the
requirements for submittals stated herein, the Contractor shall be responsible for compliance with the requirements of Division 1. 

  

	1.4.2	The Contractor shall bear the responsibility for any materials installed which were not submitted for review or not installed in compliance with the review comments and the contract
documents. 

  

	1.4.3	Verbal authorization of submittal documents or changes to the requirements of the contract documents shall not be acceptable. All submittal material must be documented in a written
format. 

  

	1.4.4	All submittal packages must be submitted at one time and in accordance with the specification section appropriate for the material. All packages must be identical and clearly
labeled indicating the specification section, project name, submittal date, Contractor’s name, Engineer’s name, preparer’s name and submission version (first submission, resubmission #1, etc.). 

  

	1.4.5	Product catalog cutsheets and descriptive literature shall be cross-referenced to the specification section by paragraph. 

  

	1.4.6	All submittal packages shall be permanently bound in brochure or booklet format. A minimum quantity of six submittal booklets shall be provided by the Contractor; additional copies
may be required if so noted. 

  

					
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	  	SCHEDULE 2	  	Basic Electrical Requirements
	 Master Specs
	  	-18-	  	18050-2

	1.4.7	Materials which bear a certification or approval of a testing agency, performance criteria, society, agency of other organization shall be submitted with all labels identified.

  

	1.4.8	The submittal shall be complete and with catalog data and information properly marked to show, among other things, materials, capacity and performance data to meet the specified
requirements. 

  

	1.4.9	Incomplete submittals will be rejected at the discretion of the reviewing Engineer. 

  

	1.4.10	Review of the submittal is only for general conformance with the contract documents. The Contractor is responsible for confirmation and coordination of dimensions, quantities,
sizes, fabrication, installation methods, and for coordination of work of other trades with electrical work. 

  

	1.4.11	Detailed working drawings shall be prepared and submitted showing items which are to be fabricated including transformer mounting racks, unistruct mounting frames, equipment room
layouts, pull boxes, splice boxes, gutters, etc. 

  

	1.4.12	Minimum scale for submitted drawings shall be 1/8”. Details shall be drawn to 1⁄4” scale. All drawings shall be 8.5” x 11” or larger.

  

	1.4.13	Submittal brochures shall be complete and descriptive of the type, make, manufacturer, application, quantity, performance, capacity, ratings, options, dimensions, clearances,
weights, nameplate data, special installation requirements, mounting method, NEMA type, NEMA class, environmental restrictions, layout requirements or other information as may be necessary for review of the material. 

  

	1.4.14	Submittal brochures for switchgear shall include, as a minimum, the following: singleline diagrams; fault current ratings of buses and devices; device identification ratings, layout
and characteristics; dimensions; circuit identification; identification label type and method of affixing; mounting; conduct entry point and quantities; NEMA enclosure type; and additional data as required for a complete review.

  

	1.4.15	Submittal brochures for lighting systems shall include, as a minimum, the following; manufacturer; detailed drawing or photograph; dimensions; lamp data; ballast data; certified
photometric data from a third-party testing agency; U.L. label listing; fixture number of identification from the drawings; finish color and material; mounting equipment; socket type and rating; environmental ratings (damp location, watertight,
explosionproof, etc.); voltage; input wattage; and additional information as necessary for a complete review. 

  

	1.4.16	The Contractor shall be responsible for all aspects of substitutions of material including any additional coat or delay incurred as a result of the substitution. The Contractor
shall coordinate all substitutions with other trades, verify code compliance, verify clearances, photometric performance, appearance, suitability, constructability, and availability of the material prior to submitting the substitution for review.
The Contractor shall bear the responsibility of any increased costs to other trades which are directly related to the substitution. 

  

	1.5	MATERIAL HANDLING 

  

					
	 Section 18050
	  	SCHEDULE 2	  	Basic Electrical Requirements
	 Master Specs
	  	-19-	  	18050-3

	1.5.1	The Contractor shall deliver all equipment and material to the site in the manufacturer’s original packaging without seals broken. 

  

	1.5.2	The Contractor shall handle, store, and protect all equipment and materials in accordance with the manufacturer’s recommendations. 

  

	1.5.3	The Contractor shall immediately replace damaged or defective equipment or materials with identical new equipment or materials at no cost, inconvenience or delay to the Owner.

  

	1.6	EXISTING CONDITIONS 

  

	1.6.1	The Contractor shall verify all existing conditions prior to bid and include all costs in bid. 

  

	1.6.2	The Contractor shall match the finish and appearance of all existing conditions where constructing new work adjacent to existing surfaces or equipment. 

  

	1.6.3	Coordinate with the Owner’s Representative for all ongoing projects or the work of other trades which may affect the Contractor’s work. Verify Owner schedule requirements
for special or standard events which may impact the Contractor’s work. 

  

	1.6.4	Coordinate work to be performed in occupied areas and comply with the Owner’s requirements such that the Owner’s work is not disrupted by the Contractor. Verify the need
for work to be performed during premium hours, evenings, weekends, or holidays prior to bid and include all costs in bid. Bring to the Owner’s attention the need for all disruptive work prior to commencement of work. 

 

	1.7	UTILITY COMPANY REQUIREMENTS 

  

	1.7.1	The contractor shall contact the serving utility company for all utility system requirements prior to commencement of work. Utility work shall include electric power, telephone,
data, fiber optic cable, cable television or other utilities as may require connections as a part of this contract. Coordinate and comply with all serving utility company requirements. 

  

	1.7.2	The utility information depicted on the contract documents is for bidding purposes only and shall not be used for construction purposes. All construction shall be performed
according to engineered documents from the serving utility company. The Contractor shall obtain and coordinate with utility company requirements as a part of this contract and furnish and install all work as a part of this contract.

  

	1.7.3	Verify all connection points, routing, and requirements with the serving utility company prior to commencement of work and coordinate final requirements with other trades.

  

	1.7.4	The Contractor shall be responsible for all costs associated with his failure to contact or coordinate with utility company requirements. 

  

	1.8	CONSTRUCTION UTILITY REQUIREMENTS 

  

	1.8.1	Power, telephone or other temporary construction utility services required by the Contractor shall be the responsibility of the Contractor. 

  

					
	 Section 18050
	  	SCHEDULE 2	  	Basic Electrical Requirements
	 Master Specs
	  	-20-	  	18050-4

	1.8.2	Arrangements for construction utility services shall be made by the Contractor in coordination with the Owner’s Representative and the serving utility company.

  

	1.9	CONTINUITY OF SERVICE 

  

	1.9.1	The Contractor shall coordinate all shutdowns with the Owner’s Representative. Electrical shutdowns shall be kept to the minimum number necessary to complete the work.

  

	1.9.2	The Contractor shall coordinate all work done on overtime or premium time with Owner’s Representative prior to commencement of work. 

  

	1.9.3	All work performed in or through occupied spaces, or other work disruptive to existing occupants shall be considered as performed during premium time or as overtime for the purposes
of the bid; include all costs in bid. 

  

	1.9.4	The Contractor shall notify Owner’s Representative of all shutdowns or disruptive work minimum of 72 hours prior to commencement of work. The Contractor shall obtain approval
from the Owner’s Representative prior to commencement of work. 

  

	1.9.5	The Contractor shall provide all necessary temporary power, including Temporary power generation, to accommodate shutdowns and minimize disruption of work. 

 

	1.9.6	The Owner reserves the right to provide emergency repairs or temporary power to maintain service continuity at the Contractor’s cost in the event Contractor fails to provide
adequate service continuity. 

  

	1.10	RECORD DOCUMENTS 

  

	1.10.1	The Contractor shall prepare as-built documents depicting all revisions to branch circuits, conduit routing, equipment, or materials. Drawings shall be legible, reproducible, and
properly identified such they may be used as a reference for maintenance or construction. 

  

	1.10.2	The Contractor shall provide a minimum of three copies of the operation and maintenance manuals to the Owner’s Representative at the completion of the project. Each copy shall
be bound in a three-ring binder and labeled indicating: the project name; system name; Contractor’s name, telephone number, and contact person; and Owner’s name. The Contractor shall provide the following information within each manual:

  

	 	1.	List of the Subcontractors performing work on the system including contact names and telephone numbers. 

  

	 	2.	Routine and emergency service contacts and telephone numbers for each system. 

  

	 	3.	Description of system operation. 

  

	 	4.	Single line diagrams and control wiring diagrams. 

  

	 	5.	Detailed product literature with technical information. 

  

					
	 Section 18050
	  	SCHEDULE 2	  	Basic Electrical Requirements
	 Master Specs
	  	-21-	  	18050-5

	 	6.	Sequence of starting, shutdown and operation. 

  

	 	7.	Installation instructions and safety requirements. 

  

	 	8.	Maintenance schedule, testing instructions and performance parameters. 

  

	 	9.	Parts list including recommended spare parts. 

  

	1.11	GUARANTEE 

  
 All electrical work, materials and equipment provided under this contract shall be guaranteed for a period of one year from the date of acceptance of the work by the Owner. Any failures, problems, or deficiencies
experienced during this period due to defective materials or faulty workmanship shall be immediately corrected by the Contractor without cost to the Owner. The Contractor shall be responsible for all damages to the Owner’s facility due to
deficiencies in the electrical system. Equipment guarantees in excess of one year shall not be superseded by this guarantee. 
  

	PART 2	PRODUCTS 

  

	2.1	MATERIALS 

  

	2.1.1	All materials shall be new, of prime quality, listed as suitable for the application, and bear factory-applied U.L. labels. 

  

	2.1.2	Materials shall be currently in production and shall be supported by spare parts, repair service, maintenance, and factory technical support. 

  

	2.1.3	Materials of one assembly (switchboards, substations, motor control centers, etc.) shall be of one manufacturer unless specifically stated otherwise in the contract documents.

  

	PART 3	EXECUTION 

  

	3.1	INSTALLATION REQUIREMENTS 

  

	3.1.1	All work shall conform to the National Electrical Contractors Association standards of installation and the requirements of the manufacturer. Division 1, Division 18, and the
Owner’s Representative. 

  

	3.1.2	The Contractor shall field-verify all dimensions and coordinate dimensions with equipment sizes and locations. 

  

	3.1.3	The Contractor shall coordinate and install all penetrations, openings, slots, chases, or sleeves as necessary for the routing and installation of raceways, conductors, or
equipment. The Contractor shall provide approved fire sealant to maintain fire ratings at all penetrations. 

  

	3.1.4	The Contractor shall coordinate the placement and sequence of installation of all mounting bolts, conduits, sleeves, etc. which are to be set in poured-in-place concrete slabs per
the structural drawings. 

  

	3.1.5	The Contractor shall install access panels in walls or ceilings in coordination with the Architect for all junction boxes or electrical equipment which requires access.

  

					
	 Section 18050
	  	SCHEDULE 2	  	Basic Electrical Requirements
	 Master Specs
	  	-22-	  	18050-6

	3.1.6	All equipment shall be installed plumb, parallel, or orthogonal to structure and in a neat, orderly fashion. All materials shall be accessible for maintenance, inspection, servicing
or replacement. 

  

	3.1.7	Verify final locations for devices during the rough-in phase with dimensioned architectural drawings, fabrication drawings, or other space planning requirements included in the
contract documents. 

  

	3.1.8	The Contractor shall coordinate and arrange for the proper sequence of construction including scheduling of long-lead items, shutdowns, work of other trades, and Owner-scheduled
events. 

  

	3.1.9.	The Contractor shall provide adequate and qualified supervision for the work performed; no work shall be performed without the supervision of a representative of the Contractor.

  

	3.1.10	The Contractor shall coordinate and cooperate with all other trades for a successful completion of the project. 

  

	3.2	SEISMIC BRACING 

  
 The Contractor shall seismically brace all equipment in accordance with Title 24 requirements for Seismic Zone 4 and provide certification of seismic
compliance upon request. 
  

	3.3	CUTTING AND PATCHING 

  

	3.3.1	The Contractor shall provide cutting and patching as required to install the electrical system in this contract. 

  

	3.3.2	Coordinate the schedule of all cutting such that the work may be performed in an expeditious manner with minimum inconvenience to the Owner. 

  

	3.3.3	Remove or cut structures or materials as necessary for demolition prior to the installation of new electrical work. 

  

	3.3.4	The Contractor shall protect all surfaces, structure, furnishings, and finishes not directly affected by cutting or patching. 

  

	3.3.5	Provide dust and moisture barriers as required during cutting and prior to patching openings. 

  

	3.3.6	All penetrations through roofs shall be performed per architectural requirements. 

  

	3.3.7	Patching shall be performed with materials which exactly match the adjacent surfaces in color, texture, character and appearance. 

  

	3.3.8	All patches must maintain the fire ratings of the original surface and shall be sealed with U.L. listed and Fire Marshall approved sealant. 

  

	3.4	COMMISSIONING 

  

					
	 Section 18050
	  	SCHEDULE 2	  	Basic Electrical Requirements
	 Master Specs
	  	-23-	  	 18050-7

	3.4.1	The Contractor shall initiate start up of all electrical equipment including operation of all devices, switches, generators, transfer switches, overcurrent protection, disconnect
switches, etc. to verify normal operation of all moving parts and electrical performance. 

  

	3.4.2	The Contractor shall test, adjust, aim, align, label, clean and complete all systems prior to acceptance by the Owner’s Representative. 

  

	3.4.3	The Contractor shall demonstrate that all systems operate within the manufacturer’s recommended performance characteristics, the electrical construction documents, system
requirements, and Owner requirements. 

  

	3.4.4	The Contractor shall test each system per the manufacturer’s requirements and shall perform the following system tests: 

  

	 	1.	Inspect cables for physical damage and proper connection. 

  

	 	2.	Torque test cable connection and tighten in accordance with industry standards. 

  

	 	3.	Infrared scan all connections under loaded conditions. 

  

	 	4.	Insulation resistance test of each cable. 

  

	 	5.	Inspect ground system connections. 

  

	 	6.	Voltage drop tests on the main grounding electrode of system. 

  

	 	7.	Determine the ground resistance between the main grounding system and all major electrical equipment frames, system neutral points. 

  

	 	8.	Check rated voltage and phase balance at all equipment, motors and selected devices at full load conditions. Measure no load voltage conditions at each location.

  

	 	9.	Furnish all material, equipment, instruments and labor as required to complete testing. 

  

	3.5	TRAINING 

  

	3.5.1	Furnish at least one copy operating instructions from the manufacturer for all electrical equipment to the Owner’s Representative. Instructions shall be clean, legible, and
properly bound. 

  

	3.5.2	The Contractor shall provide training for the Owner’s staff as directed by the Owner’s Representative for a minimum of one man-day (eight hours). 

 

	3.5.3	Provide classroom training by a qualified instructor for the operation, installation, and maintenance of designated equipment or systems including, but not limited to, generation
systems, transfer switches, uninterruptible power supplies, energy management systems, lightning control systems, power distributions systems, and other systems which may require instruction. 

  

	3.6	CLEANING 

  

					
	 Section 18050
	  	SCHEDULE 2	  	Basic Electrical Requirements
	 Master Specs
	  	-24-	  	 18050-8

 Contractor shall clean all equipment, panelboard interiors, conduit interiors, fixtures, services, etc.
of all extraneous paint, drywall mud, overspray, dust, dirt, debris, trash, grease or markings. All cleaning shall be performed by the Contractor in accordance with the appropriate manufacturer’s recommendations. 
  
 END OF SECTION 
  

					
	 Section 18050
	  	SCHEDULE 2	  	Basic Electrical Requirements
	 Master Specs
	  	-25-	  	18050-9

 Section 16110 
  
 RACEWAYS 
  

	PART 1	GENERAL PROVISIONS 

  

	1.1	RELATED DOCUMENTS 

  

	1.1.1	The general conditions, Division 1 and Basic Electrical Requirements (Section 18050) are part of this section and the contract for this work and apply to this section as fully as if
repeated herein. 

  

	1.2	QUALITY ASSURANCE AND STANDARDS 

  

	1.2.1	All work, material or equipment shall comply with the codes, ordinances and regulations of the local government having jurisdiction, including the regulations of serving utilities
and any participating government agencies having jurisdiction. 

  

	1.2.2	All electrical work shall comply with the latest edition under enforcement of the following codes and standards or other regulations which may apply: 

  

	 	.1	American Disabilities Act 

  

	 	.2	American National Standards Institute 

  

	 	.3	American Society for Testing and Materials 

  

	 	.4	Institute of Cable Engineers Association 

  

	 	.5	Institute of Electrical and Electronic Engineers 

  

	 	.6	Local Code Enforcement Agency Requirements 

  

	 	.7	National Electrical Code 

  

	 	.8	National Electrical Contractor’s Association 

  

	 	.9	National Electrical Manufacturer’s Association 

  

	 	.10	National Electrical Testing Association 

  

	 	.11	National Fire Protection Association 

  

	 	.12	Underwriter’s Laboratories, Inc. 

  

	 	.13	Uniform Building Code 

  
 No requirement of these drawings and specifications shall be construed to void any of the provisions of the above standards. Any conflicts or changes
required to the contract documents in order to obtain compliance with applicable codes shall be brought to the immediate attention of the Owner’s Representative by the contractor. 
  

	1.2.3	All items must be listed by Underwriter’s Laboratories and shall bear the U.L. label. 

  

	1.2.4	Equipment shown to scale is approximate only and based upon a general class of equipment specified. The Contractor shall verify all dimensions and clearances prior to commencement
of work. 

  

	1.2.5	The Contractor shall verify all points of connection with the manufacturer’s requirements, instructions or recommendations prior to installation. The actual dimensions,
weights, clearance requirements and installation requirements shall be verified and coordinated by the contractor. 

  

					
	 Section 16110
	 	 SCHEDULE 2
	  	Raceways
	 Master Specs
	 	 -26-
	  	16110-1

	1.3	SUBMITTALS 

  

	1.3.1	Submit shop drawings per Section 16050 for review including the following: 

  

	 	.1	Raceway materials 

  

	 	.2	Fitting materials 

  

	 	.3	Installation materials and methods 

  

	PART 2	PRODUCTS 

  

	2.1	Rigid Galvanized Steel (RGS) Conduit 

  

	2.1.1	Continuous hot-dipped galvanized manufactured per UL and ANSI requirement. 

  

	2.1.2	Rigid aluminum conduit is not acceptable. 

  

	2.1.3	Fittings for use with steel conduit, rigid or flexible, shall be manufactured per UL requirements and shall be cast metal and gasketed closures. 

  

	2.1.4	Fittings for RGS conduit shall be malleable iron or forged steel with cadmium or zinc coating. 

  

	2.1.5	Union couplings for joining rigid conduit at intermediate runs shall be of the same material as the conduit. Couplings shall be threaded concrete-tight to permit completing conduit
runs when neither conduit can be turned and to permit breaking the conduit run at the union. 

  

	2.1.6	Set screw connectors or threadless type are not acceptable. 

  

	2.1.7	Minimum raceway size shall not be less than 3/4”. 

  

	2.2	Electrical Metallic Tubing (EMT) 

  

	2.2.1	Conduit shall be cold rolled zinc coated steel and manufactured per UL and ANSI requirements. 

  

	2.2.2	Fittings for EMT shall be watertight steel or malleable gripping ring compression type. 

  

	2.2.3	Pressure cast material for nuts of compression ring type fittings and set screw connections are not acceptable. 

  

	2.2.4	Minimum raceway size shall be 1/2” 

  

	2.3	Flexible Metallic Conduit 

  

	2.3.1	Flexible conduit shall bear the UL label and be zinc coated steel. 

  

	2.3.2	Fittings for flexible metallic conduit shall be steel or malleable iron. Fittings shall clamp to conduit securely. 

  

	2.3.3	Screw in type, sheet metal or set screw type fittings are not acceptable. 

  

					
	 Section 16110
	 	 SCHEDULE 2
	  	Raceways
	 Master Specs
	 	 -27-
	  	16110-2

	2.3.4	Minimum raceway size shall not be less than 3⁄4”. 

  

	2.4	Liquid Tight Flexible Conduit 

  

	2.4.1	Conduit shall be manufactured in accordance with UL and ANSI requirements. Conduit shall be approved for grounding and compatible with approved fittings. Flexible steel conduit
shall be hot dipped galvanized with extruded PVC covering manufactured per UL requirements. 

  

	2.4.2	Fittings shall be liquid tight type with body and gland nut of steel or malleable iron with provisions for grounding flexible conduit to fittings. 

  

	2.4.3	Minimum raceway size shall be 3⁄4”. 

  

	2.5	Polyvinyl Chloride (PVC) Conduit 

  

	2.5.1	PVC shall be constructed of a virgin homopolymer PVC compound and be manufactured according to NEMA and UL specifications. PVC conduit shall be Schedule 40 or 80.

  

	2.5.2	Minimum raceway size shall be 3⁄4”. 

  

	PART 3	EXECUTION 

  

	3.1	Rigid Galvanized Steel (RGS) Conduit 

  

	3.1.1	RGS shall be used where exposed to weather or where subject to physical damage in exposed areas below 8’0” above finished floor. 

  

	3.1.2	RGS shall be used in NEC classified hazardous locations with seal connections per NEC requirements. 

  

	3.2	Electrical Metallic Tubbing (EMT) 

  

	3.2.1	EMT shall be run indoors concealed in drywall type construction above suspended ceilings, and exposed indoors not less than 8’0” above finished floor in unfinished areas.

  

	3.2.2	EMT shall not be installed underground or embedded in concrete. 

  

	3.3	Flexible Metallic Conduit 

  

	3.3.1	Flexible conduit shall be used for indoor lighting connections in suspended ceiling areas and shall not exceed 6’0” in length. 

  

	3.3.2	Flexible conduit shall be used for final connection to control equipment and not to exceed 2’0” in length. 

  

	3.3.3	The conduit grounding system shall be continuous as recommended by the manufacturer and UL approved. 

  

	3.4	Liquid Tight Flexible Conduit 

  

					
	 Section 16110
	 	 SCHEDULE 2
	  	Raceways
	 Master Specs
	 	 -28-
	  	16110-3

	3.4.1	Flexible conduit shall be used for final connection to machines, motors, transformers and equipment that requires vibration isolation. 

  

	3.4.2	Flexible conduit shall be used for final connection to equipment in wet or damp locations or where exposed to grease, water, dust or dirt. 

  

	3.4.3	The conduit grounding system shall be continuous as recommended by the manufacturer and UL requirements. 

  

	3.5	Polyvinyl Chloride (PVC) Conduit 

  

	3.5.1	All sweeps, bends, and risers shall be concrete encased Schedule 80. 

  

	3.5.2	All underground high voltage conduit, telephone conduit, service entrance conduit and feeders 100A and over shall have 3” of red mixed concrete cover. 

 

	3.5.3	All PVC conduit feeders shall contain a copper green grounding conductor sized per NEC requirements and continuity shall be maintained throughout conduit runs and pullboxes.

  

	3.6	All conduit installation methods shall comply with the latest enforced edition of the National Electrical Code and the authority having jurisdiction. 

  

	3.7	All conduit installations shall comply with the manufacturer’s installation requirements. 

  

	3.8	All spare conduit shall be provided with a pullwire. 

  
 END OF SECTION 
  

					
	 Section 16110
	 	 SCHEDULE 2
	  	Raceways
	 Master Specs
	 	 -29-
	  	16110-4

 Section 16102 
  
 WIRE AND CABLE 
  

	PART 1	GENERAL PROVISIONS 

  

	1.1	RELATED DOCUMENTS 

  

	1.1.1	The general conditions, Division 1, and Electrical General Requirements (Section 16050) are part of this section and the contract for this work and apply to this section as fully as
if repeated herein. 

  

	1.2	QUALITY ASSURANCE AND STANDARDS 

  

	1.2.1	All work, material or equipment shall comply with the codes, ordinances and regulations of the local government having jurisdiction, including the regulations of serving utilities
and any participating government agencies having jurisdiction. 

  

	1.2.2	All electrical work shall comply with the latest edition under enforcement of the following codes and standards or other regulations which may apply: 

  

	 	.1	American Disabilities Act 

  

	 	.2	American National Standards Institute 

  

	 	.3	American Society for Testing and Materials 

  

	 	.4	Institute of Cable Engineers Association 

  

	 	.5	Institute of Electrical and Electronic Engineers 

  

	 	.6	Local Code Enforcement Agency Requirements 

  

	 	.7	National Electrical Code 

  

	 	.8	National Electrical Contractor’s Association 

  

	 	.9	National Electrical Manufacturer’s Association 

  

	 	.10	National Electrical Testing Association 

  

	 	.11	National Fire Protection Association 

  

	 	.12	Underwriter’s Laboratories, Inc. 

  

	 	.13	Uniform Building Code 

  
 No requirement of these drawings and specifications shall be construed to void any of the provisions of the above standards. Any conflicts or changes
required to the contract documents in order to obtain compliance with applicable codes shall be brought to the immediate attention of the Owner’s Representative by the contractor. 
  

	1.2.3	All items shall be listed by Underwriter’s Laboratories and shall bear the UL label. 

  

	1.2.4	Equipment shown to scale is approximate only and based upon a general class of equipment specified. The Contractor shall verify all dimensions and clearances prior to commencement
of work. 

  

	1.2.5	The Contractor shall verify all points of connection with the manufacturer’s requirements, instructions, or recommendations prior to installation. The actual dimensions,
weights, clearance requirements and installation requirements shall be verified and coordinated by the contractor. 

  

	1.3	SUBMITTALS 

  

	1.3.1	Submit shop drawings per Section 16050 for review including the following: 

  

					
	 Section 16120
	  	SCHEDULE 2	  	Wire and Cable
	 Master Specs
	  	-30-	  	16120-1

	 	.1	Conductor materials 

  

	 	.2	Connector and fitting materials 

  

	 	.3	Installation materials and methods 

  

	PART 2	PRODUCTS 

  

	2.1	Conductors shall be copper, conductors size #10AWG and smaller shall be solid, conductors size #8AWG and larger shall be stranded. Conductors shall be minimum size #12AWG for power
and lighting circuits; control circuits shall use a minimum conductor size of #14AWG. 

  

	2.2	Insulation shall be type THW or THHN/THWN for all branch circuits up to and including size #2AWG. Insulation for conductors over size #2AWG shall be XHHN. 

 

	2.3	Jackets shall be nylon or PVC material. 

  

	2.4	All cables shall be UL listed for the application. 

  

	2.5	All conductors shall be installed in conduit to the field, unless specifically noted otherwise in these documents. Type AC and type NM cable is not acceptable; type MC cable may be
used when specifically noted for purposes of flexibility, maintenance, or ease of installation but shall not be used without permission. 

  

	2.6	Multi-conductor flexible cords shall be types SO, SJO, STO, or SJTO. 

  

	2.7	Connectors shall be UL listed and suitable for the conductor material being connected and rated appropriately. Connectors should be solderless metal pressure type for conductors
#10AWG and smaller. Connectors shall be compression type for conductors #8AWG and larger. 

  

	PART 3	EXECUTION 

  

	3.1	All wiring methods shall comply with the latest enforced edition of the National Electrical Code and the authority having jurisdiction. 

  

	3.2	Conductors shall be installed in clean raceways using nylon cord, polypropylene cord, hemp rope, or other material which will not damage the conductors or conduct. Do not use metal
fish tape. Use lubricant when necessary for pulling. 

  

	3.3	Conductors shall be pulled into conduit simultaneously so as to not damage conductors during pulling. 

  

	3.4	Conductors installed at outlets and switches shall have a minimum of 6” pigtail left in the box for future connections. All conductors not connected to devices shall be
terminated with splice caps or tape. 

  

	3.5	Conductors shall be terminated such that no copper material is exposed. Conductors small be trained and labeled at terminations in a neat and workmanlike manner.

  

	3.6	All terminations shall comply with the manufacturer’s installation and torquing requirements. 

  

	3.7	Splices on conductors #10AWG and smaller shall be made with splice caps twisted. 

  

					
	 Section 16140
	  	SCHEDULE 2	  	Writing Devices and Connectors
	 Master Specs
	  	-31-	  	16140-2

	 	 
onto the conductors. Tape all splices. 

  

	3.8	Splices on conductors #8AWG and larger shall be made with pressure connectors and terminal lugs. Where exposed to water, damp air, or moisture splices shall be watertight.

  

	3.9	Splices shall not be made in feeders; splices to branch circuits shall not be made within panelboards or similar enclosures. 

  

	3.10	When combining homeruns, the Contractor shall derate all conductors per code requirements including reducing the ampacity, using high temperature insulation where necessary. Conduit
sizes shall be adjusted by the Contractor as suitable for the conductor revisions. 

  

	3.11	The Contractor shall provide a code-sized insulated ground conductor, in addition to the feeder conductors indicated on the drawings, where non-metallic conduct is used.

  

	3.12	Conductors shall be color-coded as follows: 

  

					
	 208Y/120V
	  	Phase	  	480Y/277V
			
	 Black
	  	A	  	Brown
	 Red
	  	B	  	Orange
	 Blue
	  	C	  	Yellow
	 White
	  	Neutral	  	Gray
	 Green
	  	Ground	  	Green

  

	3.13	Where tape or labels are used for color-coding, apply material at each end of the conductor, splices, boxes, and all terminations 

  
 END OF SECTION 
  

					
	 Section 16120
	  	SCHEDULE 2	  	Wire and Cable
	 Master Specs
	  	-32-	  	16120-3

 Section 16130 
  
 BOXES 
  

	PART 1	GENERAL PROVISIONS 

  

	1.1	RELATED DOCUMENTS 

  

	1.1.1	The general conditions, Division 1, and Electrical General Requirements (Section 18050) are part of this section and the contract for this work and apply to this section as fully as
if repeated herein. 

  

	1.2	QUALITY ASSURANCE AND STANDARDS 

  

	1.2.1	All work, material or equipment shall comply with the codes, ordinances and regulations of the local government having jurisdiction, including the regulations of serving utilities
and any participating government agencies having jurisdiction. 

  

	1.2.2	All electrical work shall comply with the latest edition under enforcement of the following codes and standards or other regulations which may apply: 

  

	 	.1	American Disabilities Act 

  

	 	.2	American National Standards Institute 

  

	 	.3	American Society for Testing and Materials 

  

	 	.4	Institute of Cable Engineers Association 

  

	 	.5	Institute of Electrical and Electronic Engineers 

  

	 	.6	Local Code Enforcement Agency Requirements 

  

	 	.7	National Electrical Code 

  

	 	.8	National Electrical Contractor’s Association 

  

	 	.9	National Electrical Manufacturer’s Association 

  

	 	.10	National Electrical Testing Association 

  

	 	.11	National Fire Protection Association 

  

	 	.12	Underwriter’s Laboratories, Inc. 

  

	 	.13	Uniform Building Code 

  
 No requirement of these drawings and specifications shall be construed to void any of the provisions of the above standards. Any conflicts or changes
required to the contract documents in order to obtain compliance with applicable codes shall be brought to the immediate attention of the Owner’s Representative by the contractor. 
  

	1.2.3	All items must be listed by Underwriter’s Laboratories and shall bear the U.L. label. 

  

	1.2.4	Equipment shown to scale is approximate only and based upon a general class of equipment specified. The Contractor shall verify all dimensions and clearances prior to commencement
of work. 

  

	1.2.5	The Contractor shall verify all points of connection with the manufacturer’s requirements, instructions, or recommendations prior to installation. The actual dimensions,
weights, clearance requirements and installation requirements shall be verified and coordinated by the contractor. 

  

					
	 Section 16130
	  	SCHEDULE 2	  	Boxes
	 Master Specs
	  	-33-	  	16130-1

	1.3	SUBMITTALS 

  

	1.3.1	Submit shop drawings per Section 16050 for review including the following: 

  

	 	.1	Box materials 

  

	 	.2	Accessory materials 

  

	PART 2	PRODUCTS 

  

	2.1	Boxes shall be flat rolled steel sized as required by code and as suitable for the application. Boxes shall have mounting holes and knock-outs in sides and back. Grounding shall be
accommodated by means of threaded holes. 

  

	2.2	Provide accessories, extension rings, gaskets, supports, trim rings, hangers, straps, and other material as necessary for a complete code complying installation.

  

	2.3	Boxes installed outdoors shall be weathertight, dusttight, and corrosion resistant. Provide gaskets and conduct hubs. 

  

	2.4	Provide Type FS boxes for surface mounted applications. 

  

	2.5	Provide additional support for boxes as necessary when mounting fixtures or devices from boxes. 

  

	2.6	Provide ganged boxes for multiple switches and devices; provide barriers for boxes served by separate voltages. 

  

	2.7	Acceptable manufacturers shall be Appleton, Crouse Hinds, Steel City, or Raco. 

  

	PART 3	EXECUTION 

  

	3.1	All box installation method shall comply with the latest enforced edition of the National Electrical Code and the authority having jurisdiction. 

  

	3.2	Install all boxes plumb, square, and securely fastened to structure. 

  

	3.3	Boxes shall be placed such that they are readily accessible. 

  

	3.4	Cover or plug all unused openings in boxes where knockout blanks have been removed. 

  

	3.5	Install boxes such that they are flush with the finished surface of the wall or surface within which they are mounted. 

  

	3.6	Install all boxes at mounting heights per architectural, electrical code, and ADA requirements. 

  

	3.7	Boxes shall not be mounted back to back in walls. 

  

	3.8	Boxes in sealed environments shall be sealed with an approved sealant suitable for the application. 

  

	3.9	Boxes penetrating fire rated walls or surfaces shall be sealed with a Fire Marshal approved fire sealant to maintain the fire rating of the wall or surface.

  

					
	 Section 16130
	  	SCHEDULE 2	  	Boxes
	 Master Specs
	  	-34-	  	16130-2

	3.10	Boxes located above inaccessible ceilings shall be made accessible by means of access doors or hatches in the ceiling. 

  

	3.11	Install all boxes per manufacturer’s recommendations and requirements. 

  

	3.12	Provide for ground continuity at all boxes. 

  
 END OF SECTION 
  

					
	 Section 16130
	  	SCHEDULE 2	  	Boxes
	 Master Specs
	  	-35-	  	16130-3

 Section 16140 
  
 WIRING DEVICES AND CONNECTORS 
  

	PART 1	GENERAL PROVISIONS 

  

	1.1	RELATED DOCUMENTS 

  

	1.1.1	The general conditions, Division 1 and Electrical General Requirements (Section 18050) are part of this section and the contract for this work and apply to this section as fully as
if repeated herein. 

  

	1.2	QUALITY ASSURANCE AND STANDARDS 

  

	1.2.1	All work, material or equipment shall comply with the codes, ordinances and regulations of the local government having jurisdiction, including the regulations of serving utilities
and any participating government agencies having jurisdiction. 

  

	1.2.2	All electrical work shall comply with the latest edition under enforcement of the following codes and standards or other regulations which may apply: 

  

	 	.1	American Disabilities Act 

  

	 	.2	American National Standards Institute 

  

	 	.3	American Society for Testing and Materials 

  

	 	.4	Institute of Cable Engineers Association 

  

	 	.5	Institute of Electrical and Electronic Engineers 

  

	 	.6	Local Code Enforcement Agency Requirements 

  

	 	.7	National Electrical Code 

  

	 	.8	National Electrical Contractor’s Association 

  

	 	.9	National Electrical Manufacturer’s Association 

  

	 	.10	National Electrical Testing Association 

  

	 	.11	National Fire Protection Association 

  

	 	.12	Underwriter’s Laboratories, Inc. 

  

	 	.13	Uniform Building Code. 

  
 No requirement of these drawings and specifications shall be construed to void any of the provisions of the above standards. Any conflicts or changes
required to the contract documents in order to obtain compliance with applicable codes shall be brought to the immediate attention of the Owner’s Representative by the contractor. 
  

	1.2.3	All items shall be listed by Underwriter’s Laboratories and shall bear the UL label. 

  

	1.2.4	Equipment shown to scale is approximate only and based upon a general class of equipment specified. The Contractor shall verify all dimensions and clearances prior to commencement
of work. 

  

	1.2.5	The Contractor shall verify all points of connection with the manufacturer’s requirements, instructions, or recommendations prior to installation. The actual dimensions,
weights, clearance requirements and installation requirements shall be verified and coordinated by the contractor. 

  

					
	 Section 16140
	  	SCHEDULE 2	  	Writing Devices and Connectors
	 Master Specs
	  	-36-	  	16140-1

	1.3	SUBMITTALS 

  

	1.3.1	Submit shop drawings per Section 16050 for review including the following: 

  

	 	.1	Receptacles 

  

	 	.2	Switches 

  

	 	.3	Wiring devices 

  

	 	.4	Accessories 

  

	PART 2	PRODUCTS 

  

	2.1	RECEPTACLES 

  

	2.1.1	Wiring devices shall be UL listed and suitable for the application. 

  

	2.1.2	Devices shall be color coded per the system to which they are connected; normal power shall be white; emergency power shall be red; dedicated outlets shall be gray; unless otherwise
noted on the construction documents. 

  

	2.1.3	Receptacles shall be heavy duty with screw type, side wired, 120V, 20A, duplex type, unless noted otherwise on the construction documents. Verify NEMA configuration with
construction documents. 

  

	2.1.4	Weathertight receptacles shall be gasketed in cast metal boxes with cast metal coverplates with spring-loaded hinged covers over each opening. 

  

	2.1.5	Ground fault interrupting receptacles shall be duplex type and capable of detecting a leaking current of 5mA. 

  

	2.2	TOGGLE SWITCHES 

  

	2.2.1	Toggle wall switches shall be quiet AC type, rated 120/277V, 20A and UL listed for the application. 

  

	2.2.2	Switches shall be single pole, double throw with white finish unless noted otherwise. 

  

	2.3	COVERPLATES 

  

	2.3.1	Single, combination coverplates shall be used at all ganged device locations. 

  

	2.3.2	Provide white plastic coverplates with white screws in all office areas. Provide stainless steel coverplates with matching screws in laboratory, process, manufacturing, and clean
room areas or as noted on the construction documents. 

  

	2.3.3	Provide labeled plates as noted on the construction documents. 

  

	2.3.4	Provide labeled plates of all receptacles with circuit and panel designation. Labeling method shall utilize clear adhesive printed labels with black bold letters.

  

	2.4	ACCEPTABLE MANUFACTURERS 

  

	2.4.1	Acceptable manufacturers shall be Arrow Hart, Hubbell, Leviton, or Pass and Seymour. 

  

					
	 Section 16140
	  	SCHEDULE 2	  	Writing Devices and Connectors
	 Master Specs
	  	-37-	  	16140-2

	PART 3	EXECUTION 

  

	3.1	Installation method of wiring devices shall comply with the latest enforced edition of the National Electrical Code and the authority having jurisdiction. 

 

	3.2	Install all devices in accordance with the manufacturer’s recommendations and requirements. 

  

	3.3	Coordinate device mounting height, location and type with architectural and interior drawings. Coordinate with other trades to identify conflicts with device locations and notify
the Engineer of any conflicts. 

  

	3.4	Install devices only in clean boxes. 

  

	3.5	Install all trim rings and coverplates in coordination with other trades and their installation schedules. 

  

	3.6	Tighten and inspect all connections prior to covering devices and reconnect or repair wiring as necessary. 

  

	3.7	Test all devices for voltage level, continuity, ground fault, and short circuits. 

  

	3.8	Install all devices plumb and square to structure and adjacent surfaces. 

  

	3.9	Connect and inspect all ground bonds prior to covering device. 

  

	3.10	Demonstrate the proper operation of all ground fault interrupting devices. 

  
 END OF SECTION 
  
  

					
	 Section 16140
	  	SCHEDULE 2	  	Writing Devices and Connectors
	 Master Specs
	  	-38-	  	16140-3

			
	 Section 16170
	  	CIRCUIT AND MOTOR DISCONNECTS

  

	PART 1	GENERAL PROVISIONS 

  

	1.1	RELATED DOCUMENTS 

  

	1.1.1	The general conditions, Division I, and Electrical General Requirements (Section 18050) are part of this section and the contract for this work and apply to this section as fully as
if repeated herein. 

  

	1.2	QUALITY ASSURANCE AND STANDARDS 

  

	1.2.1	All work, material or equipment shall comply with the codes, ordinances and regulations of the local government having jurisdiction, including the regulations of serving utilities
and any participating government agencies having jurisdiction. 

  

	1.2.2	All electrical work shall comply with the latest edition under enforcement of the following codes and standards or other regulations which may apply: 

  

	 	.1	American Disabilities Act 

  

	 	.2	American National Standards Institute 

  

	 	.3	American Society for Testing and Materials 

  

	 	.4	Institute of Cable Engineers Association 

  

	 	.5	Institute of Electrical and Electronic Engineers 

  

	 	.6	Local Code Enforcement Agency Requirements 

  

	 	.7	National Electrical Code 

  

	 	.8	National Electrical Contractor’s Association 

  

	 	.9	National Electrical Manufacturer’s Association 

  

	 	.10	National Electrical Testing Association 

  

	 	.11	National Fire Protection Association 

  

	 	.12	Underwriter’s Laboratories, Inc. 

  

	 	.13	Uniform Building Code 

  
 No requirement of these drawings and specifications shall be construed to void any of the provisions of the above standards. Any conflicts or changes
required to the contract documents in order to obtain compliance with applicable codes shall be brought to the immediate attention of the Owner’s Representative by the contractor. 
  

	1.2.3	All items shall be listed by Underwriter’s Laboratories and shall bear the UL label. 

  

	1.2.4	Equipment shown to scale is approximate only and based upon a general class of equipment specified. The Contractor shall verify all dimensions and clearances prior to commencement
of work. 

  

	1.2.5	The Contractor shall verify all points of connection with the manufacturer’s requirements, instructions, or recommendations prior to installation. The actual dimensions,
weights, clearance requirements and installation requirements shall be verified and coordinated by the contractor. 

  

					
	 Section 16170
	  	SCHEDULE 2	  	Circuit and Motor Disconnects
	 Master Specs
	  	-39-	  	16170-1

	1.3	SUBMITTALS 

  

	1.3.1	Submit shop drawings per Section 16050 for review including the following: 

  

	 	.1	Voltage and current ratings 

  

	 	.2	NEMA enclosure type 

  

	 	.3	Horsepower rand fault current rating 

  

	 	.4	Dimensions 

  

	 	.5	Fuse type and class 

  

	PART 2	PRODUCTS 

  

	2.1	Disconnects shall NEMA 1, Indoor type, or rated for the locations in which they are installed as noted on the construction documents. 

  

	2.2	Disconnects shall be UL listed and suitable for the application. 

  

	2.3	Exterior disconnects shall be raintight, dusttight, have raintight hubs, and be rated NEMA 3R. 

  

	2.4	Disconnects shall be heavy duty type, rated 600V with current capacity as noted on the construction documents. Verify NEMA configuration with construction documents.

  

	2.5	Disconnects shall have hinged, lockable, dead-front doors with permanently marked ON/OFF indicators. Enclosures shall be baked enamel factory painted steel with conduit knockouts.

  

	2.6	Disconnects shall be operated by a handle accessible from the exterior of the enclosure. Handles shall have provision to be padlocked in the OFF position. 

 

	2.7	All current carrying parts shall be high conductivity copper designed to carry rated load without damage from heat and plated to resist corrosion. 

  

	2.8	Switch mechanism shall be a quick-make, quick-break type such that the operation of the contact is restrained by the handle during the closing or opening operation.

  

	2.9	Switches shall have a minimum fault current rating of 200,000A RMS. All switches shall be fused unless specifically noted otherwise. 

  

	2.10	The disconnect door cover shall have an interlocking mechanism to prevent opening the cover when the switch is in the ON position. 

  

	2.11	Fuses serving motor loads shall be Class L and Class RK1, 250V and 600V, time delay, dual element unless noted otherwise on the construction documents. 

  

	2.12	Fuses serving non-motor loads shall be Class L and Class RK1, 250V and 600V, fast acting, dual element unless noted otherwise on the construction documents.

  

	2.13	Provide built-in fuse pullers. 

  

	2.14	Acceptable manufactures shall be General Electric, Cutler-Hammer, Siemens, Square D, and Westinghouse. Fuses shall be Gould-Shawmut or Bussman. 

  

					
	 Section 16170
	  	SCHEDULE 2	  	Circuit and Motor Disconnects
	 Master Specs
	  	-40-	  	16170-2

	PART 3	EXECUTION 

  

	3.1	Installation method of disconnects shall comply with the latest enforced edition of the National Electrical Code and the authority having jurisdiction. 

  

	3.2	Install all disconnects in accordance with the manufacturer’s recommendations and requirements. 

  

	3.3	Coordinate disconnect mounting height, location and type with architectural and interior drawings. Coordinate with other trades to identify conflicts with device locations and
notify the Engineer of any conflicts. Mount switches 42” above finished floor unless noted otherwise. 

  

	3.4	Provide suitable galvanized metal strut framework where no wall or structure is available for the mounting of disconnects. 

  

	3.5	Provide flexible conduit connections for disconnects mounted to strut framework, motors, or vibrating equipment. 

  

	3.6	Tighten and inspect all connections and reconnect or repair wiring as necessary. 

  

	3.7	Test all disconnects for voltage level, continuity, ground fault, and short circuits. Check switch mechanism operation under no load conditions prior to operating under load.

  

	3.8	Install all disconnects plumb and square to structure and adjacent surfaces. 

  

	3.9	Provide and install all fuses sized per the equipment manufacturer’s recommendation. 

  
 END OF SECTION 
  

					
	 Section 16170
	  	SCHEDULE 2	  	Circuit and Motor Disconnects
	 Master Specs
	  	-41-	  	16170-3

 Section 16420 
  
 SWITCHBOARDS 
  

	PART 1	GENERAL PROVISIONS 

  

	1.1	RELATED DOCUMENTS 

  

	1.1.1	The general conditions, Division 1, and Electrical General Requirements (Section 18050) are part of this section and the contract for this work and apply to this section as fully as
if repeated herein. 

  

	1.2	QUALITY ASSURANCE AND STANDARDS 

  

	1.2.1	All work, material or equipment shall comply with the codes, ordinances and regulations of the local government having jurisdiction, including the regulations of serving utilities
and any participating government agencies having jurisdiction. 

  

	1.2.2	All electrical work shall comply with the latest edition under enforcement of the following codes and standards or other regulations which may apply: 

  

	 	.1	American Disabilities Act 

  

	 	.2	American National Standards Institute 

  

	 	.3	American Society for Testing and Materials 

  

	 	.4	Institute of Cable Engineers Association 

  

	 	.5	Institute of Electrical and Electronic Engineers 

  

	 	.6	Local Code Enforcement of Agency Requirements 

  

	 	.7	National Electrical Code 

  

	 	.8	National Electrical Contractor’s Association 

  

	 	.9	National Electrical Manufacturer’s Association 

  

	 	.10	National Electrical Testing Association 

  

	 	.11	National Fire Protection Association 

  

	 	.12	Underwriter’s Laboratories, Inc. 

  

	 	.13	Uniform Building Code 

  
 No requirement of these drawings and specifications shall be construed to void any of the provisions of the above standards. Any conflicts or changes
required to the contract documents in order to obtain compliance with applicable codes shall be brought to the immediate attention of the Owner’s Representative by the Contractor. 
  

	1.2.3	All items shall be listed by Underwriter’s Laboratories and shall bear the U.L. label. 

  

	1.2.4	Equipment shown to scale is approximate only and based upon a general class of equipment specified. The Contractor shall verify all dimensions and clearances prior to commencement
of work. 

  

	1.2.5	The Contractor shall verify all points of connection with the manufacturer’s requirements, instructions, or recommendations prior to installation. The actual dimensions,
weights, clearance requirements and installation requirements shall be verified and coordinated by the contractor. 

  

					
	 Section 16420
	  	SCHEDULE 2	  	Switchboards
	 Master Specs
	  	-42-	  	16420-1

	1.3	SUBMITTALS 

  

	1.3.1	Submit shop drawings per Section 16050 for review including the following: 

  

	 	.1	Switchboards 

  

	 	.2	Overcurrent protection 

  

	 	.3	Instrumentation 

  

	 	.4	Dimensions, weighs, ratings, and layouts 

  

	 	.5	Device settings and trip ratings 

  

	PART 2	PRODUCTS 

  

	2.1	Switchboards shall be factory assembled, dead-front, material enclosed, self-supporting floor standing sections as noted in the construction documents. 

  

	2.2	Vertical sections shall contain overcurrent protective devices including circuit breakers and fuses and shall be normally 90” in height. 

  

	2.3	Switchboard finish shall be baked enamel factory paint of manufacturer’s standard color. 

  

	2.4	Provide front accessibility for wireways on each side of overcurrent protective devices for entire height of section. Provide welded steel framework with screw covers removable from
the front: covers may be hinged. 

  

	2.5	All bussing shall be silver-coated copper with ratings as indicated in the construction documents. 

  

	2.6	Switchboard, bussing and devices shall be rated for the minimum available fault current as indicated on the construction documents. 

  

	2.7	Switchboards shall be equipped with lifting eyes. 

  

	2.8	Switchboards shall be suitable for the environment in which they are located and shall be NEMA 1, indoor, unless noted otherwise on the construction documents.

  

	2.9	Main circuit breakers shall be provided and shall be solid state trip type with ratings as noted. Distribution circuit breakers shall be molded case type. All circuit breakers shall
be bolt-on type. 

  

	2.10	Cross bussing shall be fully rated for the length of the switchboard. 

  

	2.11	Instrumentation shall be provided where noted. Utility company metering shall be provided in accordance with the serving utility company requirements. 

  

	2.12	The switchgear manufacturer shall submit a coordination and short circuit study for the entire system provided including long time, short time, instantaneous, and ground fault.

  

	2.13	Provide permanently adhered Bakelite labels indicating the identification of each device on the switchboard adjacent to the device and visible on the enclosure exterior.

  

	2.14	Provide a ground bus in each switchboard section with connecting ground bonds between sections. 

  

					
	 Section 16420
	  	SCHEDULE 2	  	Switchboards
	 Master Specs
	  	-43-	  	16420-2

	2.15	Acceptable manufacturers shall be General Electric, Siemens, Square D, Cuder Hammer. 

  

	PART 3	EXECUTION 

  

	3.1	Installation method of switchboards shall comply with the latest enforced edition of the National Electrical Code and the authority having jurisdiction. 

  

	3.2	Install all switchboards in accordance with the manufacturer’s recommendations and requirements. 

  

	3.3	Coordinate switchboard location and size with architectural and interior drawings. Coordinate with other trades and identify conflicts with switchboard locations and notify the
Engineer of any conflicts. 

  

	3.4	Coordinate switchboard size with concrete housekeeping pads. 

  

	3.5	Check all connections, phase rotation, ground resistance and insulation resistance levels. 

  

	3.6	Ground fault protective devices shall be testing by an approved third party testing agency and a written report submitted with the operation manual for review.

  

	3.7	Test all switchboards and overcurrent protection devices for voltage level, continuity, ground fault, and short circuits. 

  

	3.8	Install all switchboards plumb and square to structure and adjacent surfaces. 

  

	3.9	Connect and inspect all ground bonds prior to energizing switchboard. 

  

	3.10	Demonstrate the proper operation of all ground fault protective devices. 

  

	3.11	Clean all switchboard interiors and exteriors prior to handing over to Owner. Touch up scratched paint and finishes as necessary. 

  

	3.12	Adjust and set all devices for proper operation. Set ground fault protective device as per the written report recommendations. 

  
 END OF SECTION 
  

					
	 Section 16420
	  	SCHEDULE 2	  	Switchboards
	 Master Specs
	  	-44-	  	16420-3

 Section 16460 
  
 TRANSFORMERS 
  

	PART 1	GENERAL PROVISIONS 

  

	1.1	RELATED DOCUMENTS 

  

	1.1.1	The general conditions, Division 1, and Electrical General Requirements (Section 18050) are part of this section and the contract for this work and apply to this section as fully as
if repeated herein. 

  

	1.2	QUALITY ASSURANCE AND STANDARDS 

  

	1.2.1	All work, material or equipment shall comply with the codes, ordinances and regulations of the local government having jurisdiction, including the regulations of serving utilities
and any participating government agencies having jurisdiction. 

  

	1.2.1	All electrical work shall comply with the latest edition under enforcement of the following codes and standards or other regulations which may apply: 

  

	 	.1	American Disabilities Act 

  

	 	.2	American National Standards Institute 

  

	 	.3	American Society for Testing and Materials 

  

	 	.4	Institute of Cable Engineers Association 

  

	 	.5	Institute of Electrical and Electronic Engineers 

  

	 	.6	Local Code Enforcement Agency Requirements 

  

	 	.7	National Electrical Code 

  

	 	.8	National Electrical Contractor’s Association 

  

	 	.9	National Electrical Manufacturer’s Association 

  

	 	.10	National Electrical Testing Association 

  

	 	.11	National Fire Protection Association 

  

	 	.12	Underwriter’s Laboratories, Inc. 

  

	 	.13	Uniform Building Code 

  
 No requirement of these drawings and specifications shall be construed to void any of the provisions of the above standards. Any conflicts or changes
required to the contract documents in order to obtain compliance with applicable codes shall be brought to the immediate attention of the Owner’s Representative by the Contractor. 
  

	1.2.3	All items shall be listed by Underwriter’s Laboratories and shall bear the UL label. 

  

	1.2.4	Equipment shown to scale is approximate only and based upon a general class of equipment specified. The Contractor shall verify all dimensions and clearances prior to commencement
of work. 

  

	1.2.5	The Contractor shall verify all points of connection with the manufacturer’s requirements, instructions or recommendations prior to installation. The actual dimensions,
weights, clearance requirements and installation requirements shall be verified and coordinated by the contractor. 

  

					
	 Section 16460
	  	SCHEDULE 2	  	Transformers
	 Master Specs
	  	-45-	  	16460-1

	1.3	SUBMITTALS 

  

	1.3.1	Submit shop drawings per Section 16050 for review including the following: 

  

	 	.1	Voltage, KVA, impedance, frequency, taps, and efficiency 

  

	 	.2	Temperature rating above ambient 

  

	 	.3	Regulation and sound levels 

  

	 	.4	Mounting details and vibration isolation 

  

	 	.5	Nameplate data 

  

	PART 2	PRODUCTS 

  

	2.1	Transformers shall be general purpose, ventilated dry type, factory assembled, dead-front, metal enclosed, self-supporting floor standing as noted in the construction documents.

  

	2.2	Transformers shall be 480V-208Y/120V 3+ 4W (primary-secondary) voltage rated, unless noted otherwise. 

  

	2.3	Transformers shall be rated for 80°C rise above an ambient temperature of 40°C. 

  

	2.4	Coils shall be continuously wound non-hygroscopic type with thermosetting varnish. Windings shall be aluminum or copper. 

  

	2.5	Taps shall be provided at primary windings with (8)21⁄2% taps, three above and three below. 

  

	2.6	Integral vibration isolators shall be provided between the core and coil assembly and the transformer enclosure in addition to the vibration isolation located between the enclosure
and the floor. 

  

	2.7	Grounding shall be provided by means of a flexible grounding strap. 

  

	2.8	Transformers shall be suitable for the environment in which they are located and shall be NEMA 1, indoor, unless noted otherwise on the construction documents.

  

	2.9	Transformers shall have strong lugs and be enclosed in a heavy gauge, sheet steel housing with baked enamel finish. The enclosure shall be ventilated. 

  

	2.10	Transformers located in exterior areas shall be NEMA 3R, with drip shield and corrosion resistant finish. 

  

	2.11	Acceptable manufacturers shall be General Electric, Cutler-Hammer, Siemens, Square D. Cutler Hammer. 

  

	PART 3	EXECUTION 

  

	3.1	Installation method of transformers shall comply with the latest enforced edition of the National Electrical Code and the authority having jurisdiction. 

  

	3.2	Install all transformers in accordance with the manufacturer’s recommendations and requirements. 

  

					
	 Section 16460
	  	SCHEDULE 2	  	Transformers
	 Master Specs
	  	-46-	  	16460-2

	3.3	Coordinate transformer location and size with architectural and interior drawings. Coordinate with other trades to identify conflicts with transformer locations and notify the
Engineer of any conflicts. 

  

	3.4	Coordinate transformer size with concrete housekeeping pads, structural frames, and mounting hardware. 

  

	3.5	Brace transformers per California Code of Regulations, Title 24, Seismic Zone 4 requirements. 

  

	3.6	Provide rubber vibration isolation between transformer and floor, structure, or any fixed surface (including wireways). 

  

	3.7	Test all transformers for voltage level at primary and secondary windings. 

  

	3.8	Install all transformers plumb and square to structure and adjacent surfaces. 

  

	3.9	Connect and inspect all ground bonds prior to energizing transformer. 

  

	3.10	Install all conduit connections to transformer with liquid tight flexible conduit. 

  

	3.11	Clean all transformers interiors and exteriors prior to handing over to Owner. Touch up scratched paint and finishes as necessary. 

  

	3.12	Tighten and test all connections prior to energizing the transformer. 

  
 END OF SECTION 
  

					
	 Section 16460
	  	SCHEDULE 2	  	Transformers
	 Master Specs
	  	-47-	  	16460-3

 Section 16470 
  
 PANELBOARDS 
  

	PART 1	GENERAL PROVISIONS 

  

	1.1	RELATED DOCUMENTS 

  

	1.1.1	The general conditions, Division 1, and Electrical General Requirements (Section 18050) are part of this section and the contract for this work and apply to this section as fully as
if repeated herein. 

  

	1.2	QUALITY ASSURANCE AND STANDARDS 

  

	1.2.1	All work, material or equipment shall comply with the codes, ordinances and regulations of the local government having jurisdiction, including the regulations of serving utilities
and any participating government agencies having jurisdiction. 

  

	1.2.2	All electrical work shall comply with the latest edition under enforcement of the following codes and standards or other regulations which may apply: 

  

	 	.1	American Disabilities Act 

  

	 	.2	American National Standards Institute 

  

	 	.3	American Society for Testing and Materials 

  

	 	.4	Institute of Cable Engineers Association 

  

	 	.5	Institute of Electrical and Electronic Engineers 

  

	 	.6	Local Code Enforcement Agency Requirements 

  

	 	.7	National Electrical Code 

  

	 	.8	National Electrical Contractor’s Association 

  

	 	.9	National Electrical Manufacturer’s Association 

  

	 	.10	National Electrical Testing Association 

  

	 	.11	National Fire Protection Association 

  

	 	.12	Underwriter’s Laboratories, Inc. 

  

	 	.13	Uniform Building Code 

  
 No requirement of these drawings and specifications shall be construed to void any of the provisions of the above standards. Any conflicts or changes
required to the contract documents in order to obtain compliance with applicable codes shall be brought to the immediate attention of the Owner’s Representative by the Contractor. 
  

	1.2.3	All items shall be listed by Underwriter’s Laboratories and shall bear the UL label. 

  

	1.2.4	Equipment shown to scale is approximate only and based upon a general class of equipment specified. The Contractor shall verify all dimensions and clearances prior to commencement
of work. 

  

	1.2.5	The Contractor shall verify all points of connection with the manufacturer’s requirements, instructions, or recommendations prior to installation. The actual dimensions,
weights, clearance requirements and installation requirements shall be verified and coordinated by the contractor. 

  

					
	 Section 16470
	  	SCHEDULE 2	  	Panelboards
	 Master Specs
	  	-48-	  	16470-1

	1.3	SUBMITTALS 

  

	1.3.1	Submit shop drawings per Section 16050 for review including the following: 

  

	 	.1	Panelboards 

  

	 	.2	Overcurrent protection, bus capacity, main ratings, AIC rating 

  

	 	.3	Mounting, enclosure, dimensions 

  

	 	.4	Dimensions, voltage, ratings, and phases 

  

	 	.5	Device settings, trip ratings, and layout 

  

	PART 2	PRODUCTS 

  

	2.1	Panelboards shall be factory assembled, dead-front, metal enclosed, wall mounted type as noted in the construction documents. 

  

	2.2	Panelboards shall be rated 600VAC and shall not exceed 1200A current capacity. 

  

	2.3	Panelboard finish shall be baked enamel factory paint of manufacturer’s standard color. 

  

	2.4	Provide front accessibility for wireways on each side of overcurrent protective devices for entire height of panelboard. 

  

	2.5	All bussing shall be silver –plated copper with ratings as indicated in the construction documents. 

  

	2.6	Panelboard, bussing, and devices shall be rated for the minimum available fault current as indicated on the construction documents. 

  

	2.7	Enclosure shall be galvanized sheet steel cabinet type with hinged and lockable doors, dead front, and permanently adhered identification labels on the front.

  

	2.8	Switchboards shall be suitable for the environment in which they are located and shall be NEMA 1, indoor, unless noted otherwise on the construction documents.

  

	2.9	Circuit breakers shall be molded case type, all circuit breakers shall be bolt-on type. 

  

	2.10	Main lugs shall be anti-turn solderless pressure type for use with copper conductors. 

  

	2.11	Instrumentation shall be provided where noted. 

  

	2.12	Enclosures, panel interiors, and devices shall be of one manufacture. 

  

	2.13	Provide a typewritten panel schedule located in a sleeve on the interior of the panelboard door indicating loads and areas connected to each circuit. 

  

	2.14	Provide a ground bus in each panelboard. 

  

	2.15	Acceptable manufacturers shall be General Electric, Siemens, Square D. Cutler Hammer. 

  

	PART 3	EXECUTION 

  

	3.1	Installation method of panelboards shall comply with the latest enforced edition of the 

  

					
	 Section 16470
	  	SCHEDULE 2	  	Panelboards
	 Master Specs
	  	-49-	  	16470-2

	 	 
National Electrical Code and the authority having jurisdiction. 

  

	3.2	Install all panelboards in accordance with the manufacturer’s recommendations and requirements. 

  

	3.3	Coordinate panelboard location and size with architectural and interior drawings. Coordinate with other trades to identify conflicts with panelboard locations and notify the
Engineer of any conflicts. 

  

	3.4	Fasten panelboards securely to structural wall or surface to Seismic Zone 4 requirements. Panelboards shall be mounted no higher than 6’0” to the highest device from
finished floor and no lower than 24” above finished floor. Provide panel skirts where noted. 

  

	3.5	Check all connections, phase rotation, ground resistance and insulation, resistance levels. 

  

	3.6	Complete the panel schedule card and place in the sleeve on the interior of the panelboard door. 

  

	3.7	Test all panelboards and overcurrent protection devices for voltage level, continuity, ground fault, and short circuits. 

  

	3.8	Install all panelboards plumb and square to structure and adjacent surfaces. 

  

	3.9	Connect and inspect all ground bonds prior to energizing panelboard. 

  

	3.10	Demonstrate the proper operation of all ground fault protective devices. 

  

	3.11	Clean all panelboard interiors and exteriors prior to handing over to Owner. Touch up scratched paint and finishes as necessary. 

  

	3.12	Adjust and set all devices for proper operation. 

  
 END OF SECTION 
  

					
	 Section 16470
	  	SCHEDULE 2	  	Panelboards
	 Master Specs
	  	-50-	  	16470-3

 SCHEDULE 3 TO EXHIBIT B 
  
 BASE, SHELL & CORE 
  

(BASE BUILDING PLANS AND SPECIFICATIONS) 
  
 [ATTACHED] 
  
 SCHEDULE 3 TO 
 EXHIBIT B 
  
 - 1 - 

 SCHEDULE 3 
  
 SUMMARY OF BUILDING WORKING DRAWINGS 
  
  
  
 [SHEET INDEX GRAPHIC APPEARS HERE] 
  
 SCHEDULE 3 
  
  

 - 1 - 

  
  
  
  
  
  
 [SHEET INDEX GRAPHIC APPEARS HERE] 
  
 SCHEDULE 3 
  
 - 2 - 

 EXHIBIT C 
  
 KILROY CENTRE DEL MAR 
  
 NOTICE OF LEASE TERM DATES 
  

			
	 To:
	 	  

	 	 	  

	 	 	  

	 	 	  

  

	 	Re:	Office Lease dated             , 200     between
                        , a
                         (“Landlord”), and
                        , a
                         (“Tenant”) concerning Suite
             on floor(s)              of the office building located at
                        ,
                        , California. 

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

	 	1.	The Lease Term shall commence on or has commenced on                     
for a term of                      ending on
                    . 

  

	 	2.	Rent commenced to accrue on                     , in the amount of
                    . 

  

	 	3.	If the Lease Commencement Date is other than the first day of the month, the first billing will contain a pro rata adjustment. Each billing thereafter, with the exception of the
final billing, shall be for the full amount of the monthly installment as provided for in the Lease. 

  

	 	4.	Your rent checks should be made payable to                      at
                    . 

  

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

  
 EXHIBIT C 
  
 - 1 - 

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

  

					
	 “Landlord”:

	                                       
                                        
                       ,

	 a                                      
                                        
                       

		
	 By:
	 	  

			
	 	 	 Its:
	 	  

  

					
	 Agreed to and Accepted

	 as of             ,
200    .

	
	 “Tenant”:

	
	                                       
                                        
                         

	 a                                      
                                        
                       

		
	 By:
	 	  

			
	 	 	 Its:
	 	  

  
 EXHIBIT C 

 
 - 2 - 
  

 EXHIBIT D 
  
 KILROY CENTRE DEL MAR 
  
 RULES AND REGULATIONS 
  
 Tenant shall faithfully observe and comply with the following Rules and Regulations. Landlord shall not be responsible to Tenant for the nonperformance of
any of said Rules and Regulations by or otherwise with respect to the acts or omissions of any other tenants or occupants of the Project; provided, however, in no event shall Landlord enforce such Rules and Regulations in a discriminatory manner to
the detriment of Tenant. In the event of any conflict between the Rules and Regulations and the other provisions of this Lease, the latter shall control. 
  
 1. Safes and other heavy objects shall, if reasonably considered necessary by Landlord, stand on supports of such thickness as is necessary to properly
distribute the weight. Landlord will not be responsible for loss of or damage to any such safe or property in any case. Any damage to any part of the Building, its contents, occupants or visitors by moving or maintaining any such safe or other
property shall be the sole responsibility and expense of Tenant. 
  
 2. The requirements of Tenant will be attended to only upon application at Landlord’s management office or at such office location designated by Landlord. Employees of Landlord shall not perform any work or do anything outside their
regular duties unless under special instructions from Landlord. 
  
 3. No advertisement, notice or handbill shall be exhibited, distributed, painted or affixed by Tenant on any part of Kilroy Centre Del Mar without the prior written consent of the Landlord. Tenant shall not disturb, solicit, peddle, or
canvass any occupant of Kilroy Centre Del Mar and shall cooperate with Landlord and its agents of Landlord to prevent same. 
  
 4. Tenant shall not overload the floor of the Premises. 
  
 5. Tenant shall not use or keep in or on the Premises, the Building, or the Project any kerosene, gasoline, explosive material, corrosive material,
material capable of emitting toxic fumes, or other inflammable or combustible fluid chemical, substitute or material, except in compliance with applicable law. Tenant shall maintain material safety data sheets for any Hazardous Material used or kept
on the Premises. 
  
 6. Tenant shall not use, keep or permit to be
used or kept, any foul or noxious gas or substance in or on the Premises to the extent the same is noticeable in the Common Areas of Kilroy Centre Del Mar or which affects other tenants of Kilroy Centre Del Mar. Tenant shall not throw anything out
of doors, windows or skylights. 
  
 7. No cooking shall be done or
permitted on the Premises (unless Tenant receives Landlord’s prior written approval to install a cafeteria for its employees in the Premises), nor shall the Premises be used for lodging. Notwithstanding the foregoing, Underwriters’
laboratory-approved equipment and microwave ovens may be used in the Premises for heating food and brewing coffee, tea, hot chocolate and similar beverages for employees and visitors, provided that such use is in accordance with all applicable
federal, state, county and city laws, codes, ordinances, rules and regulations. 
  
 8. Tenant shall store all its trash and garbage within the interior of the Premises or in the appropriate external trash area(s) for the Building. No material shall be placed in the trash boxes or 
  
 EXHIBIT D 
  
 - 1 - 

 receptacles if such material is of such nature that it may not be disposed of in the ordinary and customary manner of
removing and disposing of trash and garbage in San Diego, California without violation of any law or ordinance governing such disposal; provided, however, Tenant may maintain separate trash enclosures for the storage of non-conforming disposal items
to the extent Tenant satisfies and complies with any applicable laws or other governmental regulations relating to the storage and disposal thereof. If the Premises is or becomes infested with vermin as a result of the use or any misuse or neglect
of the Premises by Tenant, its agents, servants, employees, contractors, visitors or licensees, Tenant shall forthwith, at Tenant’s expense, cause the Premises to be exterminated from time to time to the satisfaction of Landlord and shall
employ such licensed exterminators as shall be approved in writing in advance by Landlord. 
  
 9. Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by any governmental agency. 
  
 10. Neither the interior nor exterior of any windows shall be coated or otherwise sunscreened without the prior written
consent of Landlord. Tenant shall be responsible for any damage to the window film on the exterior windows of the Premises and shall promptly repair any such damage at Tenant’s sole cost and expense. 
  
 11. Tenant must comply with requests by the Landlord concerning the informing
of their employees of items of reasonable importance to the Landlord vis-à-vis the operation of the Project and Kilroy Centre Del Mar. 
  
 12. Tenant must comply with any applicable “NO-SMOKING” Ordinances. If Tenant is required under the ordinance to adopt a written smoking
policy, a copy of said policy shall be on file in the office of the Building. 
  
 13. Tenant hereby acknowledges that Landlord shall have no obligation to provide guard service or other security measures for the benefit of the Premises, the Building or the Project. Tenant hereby assumes all
responsibility for the protection of Tenant and its agents, employees, contractors, invitees and guests, and the property thereof, from acts of third parties, including keeping doors locked and other means of entry to the Premises closed, whether or
not Landlord, at its option, elects to provide security protection for the Project or any portion thereof. Tenant further assumes the risk that any safety and security devices, services and programs which Landlord elects, in its sole discretion, to
provide may not be effective, or may malfunction or be circumvented by an unauthorized third party, and Tenant shall, in addition to its other insurance obligations under this Lease, obtain its own insurance coverage to the extent Tenant desires
protection against losses related to such occurrences. Tenant shall cooperate in any reasonable safety or security program developed by Landlord or required by law. 
  
 14. No auction, liquidation, fire sale, going-out-of-business or bankruptcy sale shall be conducted in the Premises without
the prior written consent of Landlord. 
  
 15. No tenant shall use
or permit the use of any portion of the Premises for living quarters, sleeping apartments or lodging rooms. 
  
 Landlord reserves the right, at any time following Tenant’s consent thereto (which shall not be unreasonably withheld, conditioned or delayed), to
change or rescind any one or more of these Rules and Regulations, or to make such other and further reasonable, non-discriminatory Rules and Regulations as in Landlord’s judgment may from time to time be necessary (relative to a building
occupied solely by one tenant) for the management, safety, care and cleanliness of the Premises, Building, the Common Areas and the Project, and for the preservation of good order therein, as well as for the convenience of other 
  
 EXHIBIT D 
  
 - 2 - 

 occupants and tenants therein. Landlord may waive any one or more of these Rules and Regulations for the benefit of any
particular tenants, but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any other tenant, nor prevent Landlord from thereafter enforcing any such Rules or Regulations against any or all tenants of
the Project; provided, however, in no event shall Landlord enforce such Rules and Regulations in a discriminatory manner to the detriment of Tenant. Tenant shall be deemed to have read these Rules and Regulations and to have agreed to abide by them
as a condition of its occupancy of the Premises. 
  
 EXHIBIT D

  
 - 3 - 

 EXHIBIT E 
  
 KILROY CENTRE DEL MAR 
  
 FORM OF TENANT’S ESTOPPEL CERTIFICATE 
  
 The undersigned as Tenant under that certain Office Lease (the “Lease”) made and entered into as of
            , 200     by and between              as Landlord, and the undersigned as
Tenant, for Premises on the              floor(s) of the office building located at             ,
            , California             , certifies as follows: 
  
 1. Attached hereto as Exhibit A is a true and correct copy of the
Lease and all amendments and modifications thereto. The documents contained in Exhibit A represent the entire agreement between the parties as to the Premises. 
  
 2. The undersigned currently occupies the Premises described in the Lease, the Lease Term commenced on
            , and the Lease Term expires on             , and the undersigned has no option to terminate or cancel
the Lease or to purchase all or any part of the Premises, the Building and/or the Project. 
  
 3. Base Rent became payable on                 . 
  
 4. The Lease is in full force and effect and has not been modified, supplemented or amended in any way except as provided in
Exhibit A. 
  
 5. Tenant has not transferred, assigned, or
sublet any portion of the Premises nor entered into any license or concession agreements with respect thereto except as follows: 
  
  
  
  
  
  
  
  
  
 6. Tenant shall not modify the documents contained in Exhibit A without the prior written consent of Landlord’s mortgagee. 
  
 7. All monthly installments of Base Rent, all Additional Rent and all monthly installments of estimated Additional Rent have been paid when due through
            . The current monthly installment of Base Rent is $            . 
  
 8. All conditions of the Lease to be performed by Landlord necessary to the
enforceability of the Lease have been satisfied and Landlord is not in default thereunder. In addition, the undersigned has not delivered any notice to Landlord regarding a default by Landlord thereunder. 
  
 9. No rental has been paid more than thirty (30) days in advance and no
security has been deposited with Landlord except as provided in the Lease. 
  
 10. As of the date hereof, there are no existing defenses or offsets, or, to the undersigned’s knowledge, claims or any basis for a claim, that the undersigned has against Landlord. 
  
 EXHIBIT E 
  
 - 1 - 

 11. If Tenant is a corporation or partnership, each individual executing this Estoppel Certificate on
behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in California and that Tenant has full right and authority to execute and deliver this Estoppel Certificate and that each
person signing on behalf of Tenant is authorized to do so. 
  
 12.
There are no actions pending against the undersigned under the bankruptcy or similar laws of the United States or any state. 
  
 13. Other than in compliance with all applicable laws and incidental to the ordinary course of the use of the Premises, the undersigned has not used or
stored any hazardous substances in the Premises. 
  
 14. To the
undersigned’s knowledge, all tenant improvement work to be performed by Landlord under the Lease has been completed in accordance with the Lease and has been accepted by the undersigned and all reimbursements and allowances due to the
undersigned under the Lease in connection with any tenant improvement work have been paid in full. 
  
 The undersigned acknowledges that this Estoppel Certificate may be delivered to Landlord or to a prospective mortgagee or prospective purchaser, and
acknowledges that said prospective mortgagee or prospective purchaser will be relying upon the statements contained herein in making the loan or acquiring the property of which the Premises are a part and that receipt by it of this certificate is a
condition of making such loan or acquiring such property. 
  
 Executed at              on the              day of
            , 200    . 
  

			
	 “Tenant”:

	
	                                       
                                        
       ,

	
	 a
                                        
                                       
 

		
	 By:
	 	  

		
	 	 	 Its:

		
	 By:
	 	  
  

		
	 	 	 Its:

  
 EXHIBIT E

  
 - 2 - 

 EXHIBIT F 
  
 KILROY REALTY 
  
 RECORDING REQUESTED BY 
 AND WHEN RECORDED RETURN TO: 
  
 ALLEN MATKINS LECK GAMBLE 
         & MALLORY LLP 
 1901 Avenue of the Stars 
 8th Floor 
 Los Angeles, California 90067 
 Attention: Anton N. Natsis, Esq. 
  

  
 RECOGNITION OF COVENANTS,  
 CONDITIONS, AND RESTRICTIONS 
  
 This Recognition of Covenants, Conditions, and Restrictions (this “Agreement”) is entered into as of the     
day of             , 200    , by and between              (“Landlord”), and
             (“Tenant”), with reference to the following facts: 
  
 A. Landlord and Tenant entered into that certain Office Lease Agreement dated
             200     (the “Lease”). Pursuant to the Lease, Landlord leased to Tenant and Tenant leased from Landlord space (the
“Premises”) located in an office building on certain real property described in Exhibit A attached hereto and incorporated herein by this reference (the “Property”). 
  
 B. The Premises are located in an office building located on real property
which is part of an area owned by Landlord containing approximately              (        ) acres of real property located in the City
of             , California (the “Project”), as more particularly described in Exhibit B attached hereto and incorporated herein by this reference.

  
 C. Landlord, as declarant, has previously recorded, or
proposes to record concurrently with the recordation of this Agreement, a Declaration of Covenants, Conditions, and Restrictions (the “Declaration”), dated
            , 200    , in connection with the Project. 
  
 D. Tenant is agreeing to recognize and be bound by the terms of the Declaration, and the parties hereto desire to set forth their agreements concerning
the same. 
  
 NOW, THEREFORE, in consideration of (a) the
foregoing recitals and the mutual agreements hereinafter set forth, and (b) for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows, 
  
 1. Tenant’s Recognition of Declaration. Notwithstanding that the
Lease has been executed prior to the recordation of the Declaration, Tenant agrees to recognize and by bound by all of the terms and conditions of the Declaration. 
  
 EXHIBIT F 
  
 - 1 - 

 2. Miscellaneous. 
  
 2.1 This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, estates,
personal representatives, successors, and assigns. 
  
 2.2 This
Agreement is made in, and shall be governed, enforced and construed under the laws of, the State of California. 
  
 2.3 This Agreement constitutes the entire understanding and agreements of the parties with respect to the subject matter hereof, and shall supersede and
replace all prior understandings and agreements, whether verbal or in writing. The parties confirm and acknowledge that there are no other promises, covenants, understandings, agreements, representations, or warranties with respect to the subject
matter of this Agreement except as expressly set forth herein. 
  
 2.4 This Agreement is not to be modified, terminated, or amended in any respect, except pursuant to any instrument in writing duly executed by both of the parties hereto. 
  
 2.5 In the event that either party hereto shall bring any legal action or other proceeding with respect to the breach,
interpretation, or enforcement of this Agreement, or with respect to any dispute relating to any transaction covered by this Agreement, the losing party in such action or proceeding shall reimburse the prevailing party therein for all reasonable
costs of litigation, including reasonable attorneys’ fees, in such amount as may be determined by the court or other tribunal having jurisdiction, including matters on appeal. 
  
 2.6 All captions and heading herein are for convenience and ease of reference only, and shall not be used or referred to in
any way in connection with the interpretation or enforcement of this Agreement. 
  
 2.7 If any provision of this Agreement, as applied to any party or to any circumstance, shall be adjudged by a court of competent jurisdictions to be void or unenforceable for any reason, the same shall not affect any
other provision of this Agreement, the application of such provision under circumstances different from those adjudged by the court, or the validity or enforceability of this Agreement as a whole. 
  
 2.8 Time is of the essence of this Agreement. 
  
 2.9 The Parties agree to execute any further documents, and take any further
actions, as may be reasonable and appropriate in order to carry out the purpose and intent of this Agreement. 
  
 2.10 As used herein, the masculine, feminine or neuter gender, and the singular and plural numbers, shall each be deemed to include the others whenever
and whatever the context so indicates. 
  
 EXHIBIT F 
  
 - 2 - 

 SIGNATURE PAGE OF RECOGNITION OF 
  
 COVENANTS, CONDITIONS AND RESTRICTIONS 
  
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

  

			
	 “Landlord”:

	
	                                       
                                        
       ,

	
	 a
                                        
                                       
 

		
	 By:
	 	  

		
	 	 	 Its:

  

			
	 “Tenant”:

	
	                                       
                                        
       ,

	
	 a
                                        
                                       
 

		
	 By:
	 	  

		
	 	 	 Its:

		
	 By:
	 	  

		
	 	 	 Its:

		
	 By:
	 	  

		
	 	 	 Its:

  
 EXHIBIT F

  
 - 3 - 

 EXHIBIT G 
  
 GUARANTY OF LEASE 
  
 THIS GUARANTY OF LEASE (this “Guaranty”) is made as of September 23, 2002, by MEMEC GROUP HOLDINGS LIMITED, a company incorporated and
registered in England and Wales (the “Guarantor”), whose address is set forth in Paragraph 10 hereof, in favor of KILROY REALTY, L.P., a Delaware limited partnership (“Landlord”), having an office at 3811 Valley
Centre Drive, Suite 300, San Diego, California 92130. 
  
 WHEREAS,
Landlord and MEMEC, LLC, a Delaware limited liability company (“Tenant”) desire to enter into that certain Office Lease dated as of September 23, 2002 (the “Lease”) concerning the premises consisting of all of
(initially floors 1, 3, 4, and 5, and following the “Additional Premises Commencement Date” (as that term is defined in the Lease and anticipated to be March 1, 2005) also including floor 2) that certain five (5)-story building (the
“Building”) located at 3721 Valley Centre Drive, San Diego, California 92130, which Building contains 114,782 rentable square feet of space, and which Building is commonly referred to as “Building 4” within that certain
office project known as “Kilroy Centre Del Mar,” as further set forth in Section 1.1.2 of the Lease. ; 
  
 WHEREAS, Guarantor has a financial interest in the Tenant; and 
  
 WHEREAS, Landlord would not execute the Lease if Guarantor did not execute and deliver to Landlord this Guaranty. 
  
 NOW THEREFORE, for and in consideration of the execution of the foregoing
Lease by Landlord and as a material inducement to Landlord to execute said Lease, Guarantor hereby absolutely, presently, continually, unconditionally and irrevocably guaranty the prompt payment by Tenant of all rentals and all other sums payable by
Tenant under said Lease and the faithful and prompt performance by Tenant of each and every one of the terms, conditions and covenants of said Lease to be kept and performed by Tenant, and further agree as follows: 
  
 1. It is specifically agreed and understood that the terms, covenants and
conditions of the Lease may be altered, affected, modified, amended, compromised, released or otherwise changed by agreement between Landlord and Tenant, or by course of conduct and Guarantor does guaranty and promise to perform all of the
obligations of Tenant under the Lease as so altered, affected, modified, amended, compromised, released or changed and the Lease may be assigned by or with the consent of Landlord or any assignee of Landlord without consent or notice to Guarantor
and that this Guaranty shall thereupon and thereafter guaranty the performance of said Lease as so changed, modified, amended, compromised, released, altered or assigned. 
  
 2. This Guaranty shall not be released, modified or affected by failure or delay on the part of Landlord to enforce any of
the rights or remedies of Landlord under the Lease, whether pursuant to the terms thereof or at law or in equity, or by any release of any person liable under the terms of the Lease (including, without limitation, Tenant) or any other Guarantor,
including without limitation, any other Guarantor named herein, from any liability with respect to Guarantor’s obligations hereunder. 
  
 3. Guarantor’s liability under this Guaranty shall continue until all rents due under the Lease have been paid in full in cash and until all other
obligations to Landlord have been satisfied, and shall not be reduced by virtue of any payment by Tenant of any amount due under the Lease. If all or any portion of Tenant’s obligations under the Lease is paid or performed by Tenant, the
obligations of Guarantor hereunder shall continue and remain in full force and effect in the event that all or any part of such payment(s) or performance(s) is avoided or recovered directly or indirectly from Landlord as a preference, fraudulent
transfer or otherwise. 
  
 EXHIBIT G 
  
 - 1 - 

 4. Guarantor warrants and represents to Landlord that Guarantor now has and will continue to have full
and complete access to any and all information concerning the Lease, the value of the assets owned or to be acquired by Tenant, Tenant’s financial status and its ability to pay and perform the obligations owed to Landlord under the Lease.
Guarantor further warrants and represents that Guarantor has reviewed and approved copies of the Lease and is fully informed of the remedies Landlord may pursue, with or without notice to Tenant, in the event of default under the Lease. So long as
Guarantor’s obligations hereunder remains unsatisfied or owing to Landlord, Guarantor shall keep fully informed as to all aspects of Tenant’s financial condition and the performance of said obligations. 
  
 5. Guarantor hereby covenants and agrees with Landlord that if a default
shall at any time occur in the payment of any sums due under the Lease by Tenant or in the performance of any other obligation of Tenant under the Lease, Guarantor shall and will forthwith upon demand pay such sums, and any arrears thereof, to
Landlord in legal currency of the United States of America for payment of public and private debts, and take all other actions necessary to cure such default and perform such obligations of Tenant. 
  
 6. The liability of Guarantor under this Guaranty is a guaranty of payment
and performance and not of collectibility, and is not conditioned or contingent upon the genuineness, validity, regularity or enforceability of the Lease or the pursuit by Landlord of any remedies which it now has or may hereafter have with respect
thereto, at law, in equity or otherwise; provided, however, the liability of Guarantor shall not exceed the liability of Tenant to Landlord as if Guarantor were the tenant under the lease. 
  
 7. To the extent permitted by law, Guarantor hereby waives and agrees not to
assert or take advantage of: (i) all notices to Guarantor, to Tenant, or to any other person, including, but not limited to, notices of the acceptance of this Guaranty or the creation, renewal, extension, assignment, modification or accrual of any
of the obligations owed to Landlord under the Lease and, except to the extent set forth in Paragraph 9 hereof, enforcement of any right or remedy with respect thereto, and notice of any other matters relating thereto; (ii) notice of acceptance
of this Guaranty; (iii) demand of payment, presentation and protest; (iv) any right to require Landlord to apply to any default any security deposit or other security it may hold under the Lease; (v) any right or defense that may arise by reason of
the incapability, lack or authority, death or disability of Tenant or any other person; and (vi) all principles or provisions of law which conflict with the terms of this Guaranty. Moreover, Guarantor agrees that Guarantor’s obligations shall
not be affected by any circumstances which constitute a legal or equitable discharge of a guarantor or surety. 
  
 8. Guarantor agrees that Landlord may enforce this Guaranty without the necessity of proceeding against Tenant or any other guarantor. Guarantor hereby
waives the right to require Landlord to proceed against Tenant, to proceed against any other guarantor, to exercise any right or remedy under the Lease or to pursue any other remedy or to enforce any other right. 
  
 9. (a) Guarantor agrees that nothing contained herein shall prevent Landlord
from suing on the Lease or from exercising any rights available to it thereunder and that the exercise of any of the aforesaid rights shall not constitute a legal or equitable discharge of Guarantor. Without limiting the generality of the foregoing,
Guarantor hereby expressly waives any and all benefits under California Civil Code §§2810, 2819, 2845, 2849 and 2850. 
  
 EXHIBIT G 
  
 - 2 - 

 (b) Guarantor agrees that Guarantor shall have no right of subrogation against Tenant or any right of
contribution against any other Guarantor hereunder unless and until all amounts due under the Lease have been paid in full and all other obligations under the Lease have been satisfied. Guarantor further agrees that, to the extent the waiver of
Guarantor’s rights of subrogation and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation Guarantor may have against Tenant shall be junior and
subordinate to any rights Landlord may have against Tenant. 
  
 (c) The obligations of Guarantor under this Guaranty shall not be altered, limited or affected by any case, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of Tenant
or any defense which Tenant may have by reason of order, decree or decision of any court or administrative body resulting from any such case. Landlord shall have the sole right to accept or reject any plan on behalf of Guarantor proposed in such
case and to take any other action which Guarantor would be entitled to take, including, without limitation, the decision to file or not file a claim. Guarantor acknowledges and agrees that any payment which accrues with respect to Tenant’s
obligations under the Lease (including, without limitation, the payment of rent) after the commencement of any such proceeding (or, if any such payment ceases to accrue by operation of law by reason of the commencement of such proceeding, such
payment as would have accrued if said proceedings had not been commenced) shall be included in Guarantor’s obligations hereunder because it is the intention of the parties that said obligations should be determined without regard to any rule or
law or order which may relieve Tenant of any of its obligations under the Lease. Guarantor hereby permits any trustee in bankruptcy, receiver, debtor-in-possession, assignee for the benefit of creditors or similar person to pay Landlord, or allow
the claim of Landlord in respect of, any such payment accruing after the date on which such proceeding is commenced. Guarantor hereby assigns to Landlord Guarantor’s right to receive any payments from any trustee in bankruptcy, receiver,
debtor-in-possession, assignee for the benefit of creditors or similar person by way of dividend, adequate protection payment or otherwise. 
  
 10. Any notice, statement, demand, consent, approval or other communication required or permitted to be given, rendered or made by either party to the
other, pursuant to this Guaranty or pursuant to any applicable law or requirement of public authority, shall be in writing (whether or not so stated elsewhere in this Guaranty) and shall be deemed to have been properly given, rendered or made only
if hand-delivered or sent by first-class mail, postage pre-paid, addressed to the other party at its respective address set forth below, and shall be deemed to have been given, rendered or made on the day it is hand-delivered or one day after it is
mailed, unless it is mailed outside of the county in which the Building is located, in which case it shall be deemed to have been given, rendered or made on the third business day after the day it is mailed. By giving notice as provided above,
either party may designate a different address for notices, statements, demands, consents, approvals or other communications intended for it. 
  
 To Guarantor:        Memec Group Holdings Limited 
   17 Thame Park Road 
   Thame, Oxon 
   United Kingdom, 0X93UQ 
  
 To Landlord:         Kilroy Realty Corporation 
   12200 W. Olympic Boulevard, 
   Suite 200 
   Los Angeles, California 90064 
   Attention: Legal Department 
  
 EXHIBIT G 
  
 - 3 - 

 with copies to: 
  
 Kilroy Realty Corporation 
 3811 Valley Centre Drive, Suite 300 
 San Diego, California 92130 
 Attention: Mr. Roger Simsiman 
  
 and 
  
 Allen Matkins Leck Gamble & Mallory 
 1901 Avenue of the Stars, Suite 1800 
 Los Angeles, California 90067 
 Attention: Anton N. Natsis, Esq. 
  
 11. Guarantor represents and warrants to Landlord as follows: 
  
 (a) No consent of any other person, including, without limitation, any creditors of Guarantor, and no license, permit, approval or authorization of,
exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required by Guarantor in connection with this Guaranty or the execution, delivery, performance, validity or enforceability of this Guaranty
and all obligations required hereunder. This Guaranty has been duly executed and delivered by Guarantor, and constitutes the legally valid and binding obligation of Guarantor enforceable against Guarantor in accordance with its terms. 
  
 (b) The execution, delivery and performance of this Guaranty will not violate
any provision of any existing law or regulation binding on Guarantor, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding on Guarantor, or of any mortgage, indenture, lease, contract or other agreement,
instrument or undertaking to which Guarantor is a party or by which Guarantor or any of Guarantor’s assets may be bound, and will not result in, or require, the creation or imposition of any lien on any of Guarantor’s property, assets or
revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking. 
  
 12. The obligations of Tenant under the Lease to execute and deliver estoppel statements, as therein provided, shall be deemed to also require the
Guarantor hereunder to do and provide the same relative to Guarantor. 
  
 13. This Guaranty shall be binding upon Guarantor, Guarantor’s heirs, representatives, administrators, executors, successors and assigns and shall inure to the benefit of and shall be enforceable by Landlord, its successors, endorsees
and assigns. Any married person executing this Guaranty agrees that recourse may be had against community assets and against his separate property for the satisfaction of all obligations herein guaranteed. As used herein, the singular shall include
the plural, and the masculine shall include the feminine and neuter and vice versa, if the context so requires. 
  
 14. The term “Landlord” whenever used herein refers to and means the Landlord specifically named in the Lease and also any assignee of said
Landlord, whether by outright assignment or by assignment for security, and also any successor to the interest of said Landlord or of any assignee in the Lease or any part thereof, whether by assignment or otherwise. So long as the Landlord’s
interest in or to demised premises (as that term is used in the Lease) or the rents, issues and profits therefrom, or in, to or under the Lease, are subject to any mortgage or deed of trust or assignment for security, no acquisition by 

 
 EXHIBIT G 
  
 - 4 - 

 Guarantor of the Landlord’s interest in demised premises or under the Lease shall affect the continuing obligations
of Guarantor under this Guaranty, which obligations shall continue in full force and effect for the benefit of the mortgagee, beneficiary, trustee or assignee under such mortgage, deed of trust or assignment, of any purchaser at sale by judicial
foreclosure or under private power of sale, and of the successors and assigns of any such mortgagee, beneficiary, trustee, assignee or purchaser. 
  
 15. The term “Tenant” whenever used herein refers to and means the Tenant in the Lease specifically named and also any assignee or sublessee of
said Lease and also any successor to the interests of said Tenant, assignee or sublessee of such Lease or any part thereof, whether by assignment, sublease or otherwise. 
  
 16. In the event of any dispute or litigation regarding the enforcement or validity of this Guaranty, Guarantor (or the
prevailing party if such litigation is prosecuted to judgment) shall be obligated to pay all charges, costs and expenses (including, without limitation, reasonable attorneys’ fees) incurred by Landlord (or the non-prevailing party if such
litigation is prosecuted to judgment). 
  
 17. This Guaranty shall
be governed by and construed in accordance with the laws of the state in which the Building is located, and in a case involving diversity of citizenship, shall be litigated in and subject to the jurisdiction of the courts of the State in which the
Building is located. 
  
 18. Every provision of this Guaranty is
intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever by a court of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and
provisions hereof, which terms and provisions shall remain binding and enforceable. 
  
 19. This Guaranty may be executed in any number of counterparts each of which shall be deemed an original and all of which shall constitute one and the same Guaranty with the same effect as if all parties had signed
the same signature page. Any signature page of this Guaranty may be detached from any counterpart of this Guaranty and re-attached to any other counterpart of this Guaranty identical in form hereto but having attached to it one or more additional
signature pages. 
  
 20. No failure or delay on the part of
Landlord to exercise any power, right or privilege under this Guaranty shall impair any such power, right or privilege, or be construed to be a waiver of any default or an acquiescence therein, nor shall any single or partial exercise of such power,
right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 
  
 21. This Guaranty shall constitute the entire agreement between Guarantor and the Landlord with respect to the subject matter hereof. No provision of this
Guaranty or right of Landlord hereunder may be waived nor may any Guarantor be released from any obligation hereunder except by a writing duly executed by an authorized officer, director or trustee of Landlord. 
  
 22. The liability of Guarantor and all rights, powers and remedies of
Landlord hereunder and under any other agreement now or at any time hereafter in force between Landlord and Guarantor relating to the Lease shall be cumulative and not alternative and such rights, powers and remedies shall be in addition to all
rights, powers and remedies given to Landlord by law. 
  
 EXHIBIT G

  
 - 5 - 

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

  

			
	 MEMEC GROUP HOLDINGS LIMITED,

	 a company incorporated and registered

	 in England and Wales

		
	 By:
	 	 /s/    DAVID ASHWORTH

		
	 	 	 Its: CEO

		
	 By:
	 	 /s/    JAMES WALL

		
	 	 	 Its: CFO

  
 EXHIBIT G

  
 - 6 - 

 EXHIBIT H 
  
 (Letterhead of a money center bank 
 acceptable to the Landlord) 
  
             , 200     
  
 Kilroy Realty Corporation 
 12200 W. Olympic Boulevard, 
 Suite 200 
 Los Angeles, California 90064 
 Attention: Legal Department 
  
 Gentlemen: 
  
 We hereby establish our Irrevocable Letter of Credit and authorize you to draw on us at sight for the account of
            , a             , the aggregate amount of
             ($            ). 
  
 Funds under this Letter of Credit are available to the beneficiary hereof as follows: 
  
 Any or all of the sums hereunder may be drawn down at any time and from time
to time from and after the date hereof by a representative of                  (“Beneficiary”) when accompanied by this Letter of Credit and a written
statement signed by a representative of Beneficiary, certifying that such moneys are due and owing to Beneficiary. 
  
 This Letter of Credit is transferable in its entirety at no cost to Beneficiary. Should a transfer be desired, such transfer will be subject to the return
to us of this advice, together with written instructions. 
  
 The
amount of each draft must be endorsed on the reverse hereof by the negotiating bank. We hereby agree that this Letter of Credit shall be duly honored upon presentation and delivery of the certification specified above. 
  
 This Letter of Credit shall expire on
            . 
  
 Notwithstanding the above expiration date of this Letter of Credit, the term of this Letter of Credit shall be automatically renewed for successive, additional one (1) year periods unless, at least thirty (30) days
prior to any such date of expiration, the undersigned shall give written notice to Beneficiary, by certified mail, return receipt requested and at the address set forth above or at such other address as may be given to the undersigned by
Beneficiary, that this Letter of Credit will not be renewed. 
  
 This Letter of Credit is governed by the Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce Publication 500. 
  

			
	 Very truly yours,

	 (Name of Issuing Bank)

		
	 By:
	 	  

  
 EXHIBIT H

  
 - 1 - 

 EXHIBIT I 
  
 KILROY CENTRE DEL MAR 
  

SHORT FORM OF MEMORANDUM OF LEASE 
  
 RECORDING REQUESTED BY 
 AND WHEN RECORDED RETURN TO: 
  
 Memec, LLC 
 9980 Huennekens Street 
 San Diego, California 92121 
 Attention: George Evans, Director of Facilities and Purchasing 
  

  
 SHORT FORM OF MEMORANDUM OF LEASE 
  
 THIS SHORT FORM OF MEMORANDUM OF LEASE is entered into as of the 23rd day of
September, 2002, by and between KILROY REALTY, L.P., a Delaware limited partnership (“Landlord”), and MEMEC, LLC, a Delaware limited liability company (“Tenant”), who agree as follows. 
  
 1. Terms and Premises. Landlord leases to Tenant, and Tenant
leases from Landlord, certain premises (the “Premises”) to be located on a portion of the real property (the “Project”) legally described on Schedule 1 attached hereto and incorporated herein by this
reference (including parking areas more particularly identified in the Lease), for the term and in accordance with the provisions of that certain Lease by and between Landlord and Tenant, dated as of the date hereof (the “Lease”).
The provisions of the Lease are hereby incorporated herein. 
  
 2.
Certain Express Lease Terms. As more particularly set forth in the referenced sections of the Lease, Tenant enjoys the following rights pursuant to the terms and conditions of the Lease: (i) a Right of First Refusal with regard to the
first (1st) floor of the adjacent building within the Project commonly known as “Building 5”, as more
particularly set forth in Section 1.4 of the Lease); (ii) an initial Lease Term of ten (10) years, which initial Lease Term is anticipated to commence on March 1, 2003, as more particularly set forth in Section 2.1 of the Lease, and
(iii) Option Rights with regard to two (2) options to extend the Lease Term for the entire Premises each by a period of five (5) years, as more particularly set forth in Section 2.2 of the Lease. 
  
 3. Provisions Binding on Parties. The provisions of the Lease
to be performed by Landlord or Tenant, whether affirmative or negative in nature, are intended to and shall bind or benefit the respective parties hereto and their assigns or successors, as applicable, at all times. 
  
 EXHIBIT I 
  
 - 1 - 

 3. Purpose of Short Form of Memorandum of Lease. This Short Form of Memorandum of Lease is
prepared solely for purposes of recordation, and in no way modifies the provisions of the Lease. 
  

					
	 LANDLORD
	  	 KILROY REALTY, L.P.,

	 	  	 a Delaware limited partnership

			
	 	  	 By:
	 	  

	 	  	 Name:
	 	  

	 	  	 Title:
	 	  

		
	 TENANT
	  	 MEMEC, LLC,

	 	  	 a Delaware limited liability company

	 	  	 By:
	 	  

	 	  	 Name:
	 	  

	 	  	 Title:
	 	  

  
 EXHIBIT I 

 
 - 2 - 

 STATE OF CALIFORNIA            ) 
                                        
                 ) ss. 
 COUNTY OF
                                ) 
  
 On
            , before me,             , a Notary Public in and for said state, personally appeared
            , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me
that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  

	
	  

	 Notary Public in and for said State

  
 (SEAL) 
  
 STATE OF CALIFORNIA            )

                                        
                 ) ss. 
 COUNTY OF
                                ) 
  
 On
            , before me,             , a Notary Public in and for said state, personally appeared
            , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me
that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  

	
	  

	 Notary Public in and for said State

  
 (SEAL) 
  
 EXHIBIT I 
  
 - 3 - 

 EXHIBIT J 
  
 KILROY CENTRE DEL MAR 
  

LANDSCAPING & JANITORIAL SPECIFICATIONS 
  
 [ATTACHED] 
  
 Already delivered to the Tenant 
  
 EXHIBIT J 
  
 - 1 - 
  
 KILROY REALTY 
  
 Kilroy Centre Del Mar 
  
 [Memec LLC] 

 Landscape Maintenance Specifications 
  

	I.	GENERAL INFORMATION 

  

	A.    Definitions	- Wherever these words appear in this specification, they shall have the following meanings: 

  

	 	1.	Specifications: General information, general and specific requirements, and any supplements, drawings, sketches and data sheets, attached or referenced.

  

	 	2.	Contractor: The party or parties executing a contract with the Owner for the work specified herein. 

  

	 	3.	Owner’s Representative: The person designated by Owner as the project representative. 

  

	 	4.	Work: All landscape maintenance work specified, implied or directed. 

  

	 	5.	Approved/Approval: Satisfactory to the Owner’s Representative. 

  

	 	6.	Extra Work: Work beyond Contractor’s normal scope of work. 

  

	 	7.	KRC: Designates of Kilroy Realty Corporation. 

  

	B.	Contract Conditions 

  

	 	1.	Licensing: Contractor shall be licensed by the State of California and registered with the County (where work is performed) as a Landscape Contractor in the categories
necessary to perform work under this contract in compliance with governmental requirements. Contractor must be in good standing with the California Landscape Contractor’s Association. Contractor shall furnish KRC or Owner’s Representative,
annually upon each anniversary of the date hereof and upon request from KRC or Owner’s Representative at any time during the term hereof, with current, valid copies of all required licenses. 

  

	 	2.	Emergency Numbers: Contractor shall provide and maintain a current list of emergency numbers for 24-hour emergency response. Contractor shall initiate remedial action within
one (1) hour of notification. Should Contractor fail to respond within a 1-hour time period, Kilroy Realty Corporation will respond and back charge Contractor at a rate of $50.00 per hour with a 4-hour minimum ($200). Remedial action shall not
exceed three (3) hours without prior approval from KRC. Contractor shall notify 

	 	    	KRC of the call-out and any action taken within twelve (12) hours of the call-out. 

  

	 	3.	Protection of Property: Contractor shall exercise due care in protecting from damage all existing facilities, structures and utilities, both above-surface and underground, on
property. Any damage to property deemed to be caused by Contractor’s negligence shall be corrected or paid for at Contractor’s sole expense. If KRC requests or directs Contractor to perform work in a given area, it will be the
Contractor’s responsibility to verify and locate any underground system, i.e. utility lines. The Contractor is responsible for taking reasonable precautions when working in these areas. Any damage or problems shall be reported immediately to
KRC. 

  

	 	4.	Storm Damage: During periods of storms, Contractor will provide inspections of the property during regular assigned hours to prevent or minimize the possible damage from
inclement weather. Contractor shall report any storm damage to KRC immediately. If remedial work is requested beyond the scope of this contract, it shall be paid as Extra Work. 

  

	 	5.	Inspections: Upon request, Contractor shall walk the property with KRC. A minimum of (1) inspection per month will be required. Additional landscape inspections to be
determined by Owner’s Representative. 

  

	 	6.	Schedule: Contractor shall give KRC a schedule of service days and times prior to commencement of work. Contractor will provide KRC with 48 hours advance notice for any
schedule deviations. 

  

	 	7.	Supervision: Supervision of all work must be performed by Contractor, or another competent person, who can communicate in English with KRC, both orally and in writing.

  

	 	8.	Reporting: Contractor shall provide KRC with reports regarding services if requested, at no additional charge. This may include: 

  

	 	a.	Suggestions for improving planting or irrigation. 

	 	b.	Cost estimates for remedial or additional work. 

	 	c.	To provide chemical application reports upon request of KRC. 

  

	 	9.	Dress Code: Contractor shall be required to provide uniforms or other KRC approved methods of employee identification for all personnel working on the property. All personnel
shall present a neat, clean appearance. 

  

			
	Landscaping Specs	 	Page 2 of 2

	 	10.	Utilities: All utilities shall be provided by KRC. Necessary specialized connections shall be provided by Contractor. No on-site storage facilities will be provided.

  

	 	11.	Materials: All materials specified shall be delivered to the property in original containers with the name of the product, manufacturer, date and chemical analysis plainly
marked on the containers. 

  

	 	12.	Substitutions: Wherever a specific type of material is specified, i.e. irrigation supplies, plant material, fertilizers, etc., no substitutions shall be allowed without the
written approval of KRC. 

  

	 	13.	Payment: Contractor shall present two (2) copies of the monthly invoices for the base contract. All invoices shall be itemized to show material and labor costs. Any work
performed as “extra work” shall be billed on a separate invoice (two copies) with a detailing of the location, time and materials involved in extra work. Any invoice received later than sixty (60) days after completion of work will not be
paid. All invoices for the fiscal year must be submitted by December 2 of that year. Any invoices submitted after December 2 will not be paid. 

  

	 	14.	Back Charges: Back charges will be deducted directly from contract invoice payments; to include, but not limited to: 

  

	 	a.	Non-response to emergencies. 

	 	b.	Lost locks or keys. 

	 	c.	Damage of property due to Contractor negligence. 

	 	d.	Water usage fines that are determined to be caused by Contractor’s negligence. 

  

	 	15.	Insurance: Throughout contract term, Contractor shall provide proof of insurance to KRC in the form of an original Certificate of Insurance. Certificate shall reference the
property, name additional insured as requested by KRC and abide by the following limits of liability: 

  

			
	 Comprehensive General Liability
	  	$2 Million
	 Automobile Collision
	  	$1 Million
	 Worker’s Compensation
	  	$1 Million

  
 Without evidence of
current insurance, Contract will be invalid and Contractor shall be prohibited from property. 
  

	 	16.	Associations: Contractor must be a current member of California Landscape Contractor’s Association. 

  

			
	Landscaping Specs	 	Page 3 of 3

	 	17.	Extra Work: In the event that the Contractor is requested by written or verbal approval and agrees to perform the work which is not specified under this contract, the
following procedure will govern such extra work. 

  

	 	a.	Work will be executed under a time and material basis or an agreed upon lump sum price, and quantity discounts may apply depending on the nature of the work. Work will be
distributed to Contractor via Purchase Order up to $2,500, an approved Proposal, or a Work Order from our Customer Service Department. 

  

	 	b.	Extra work will be cost itemized on a separate monthly billing. Material mark-up shall not exceed Contractor cost + fifteen (15%) percent. Contractor must supply material invoices
upon request. 

  

	 	c.	Extra work may include, but not be limited to, the following: 

  

	 	1.	Replacement of plant materials due to failures beyond Contractor’s control. 

	 	2.	Replacement of worn or damaged sprinkler heads, valves, quick couplers, etc. 

	 	3.	Laboratory costs for soil or plant testing. 

	 	4.	Remedial Landscaping - No changes shall be made to the existing landscape unless so directed in writing by KRC. 

	 	5.	Repairs or replacement due to vandalism or acts of God. 

	 	6.	High tree pruning which cannot be performed without the assistance of a ladder (over 15’). 

	 	7.	Disposal of Christmas trees off-site. 

	 	8.	Disposal of discarded furniture off site. 

	 	9.	Mowing of ground cover beds as directed by KRC. 

  

	 	d.	This contract does not grant Contractor the exclusive right to said extra work. 

  

	 	e.	Additional extra work items to the contract may be found in Section VI of these specifications. 

  

	II.	SCOPE OF WORK 

  
 Contractor shall provide all equipment, labor and materials, tools, services and special kills required to perform the landscape maintenance as set forth
in these specifications and in keeping with the surrounding community. Maintenance of plant material shall include, but not be limited to, mowing, trimming, aeration, pruning, watering, fertilization, weed control, pest control and cleanup. It is
the intent to provide plant material maintenance methods to keep the site in a state of perpetual growth and repair. Irrigation maintenance shall include operation of 
  

			
	Landscaping Specs	 	Page 4 of 4

 system, adjustments and minor repairs. The walkways shall be cleaned to prevent impairment of walking
surface from plant materials or standing water. 
  

	A.	Fertilization 

  
 In making applications of fertilizer, precautions shall be taken to contain these materials in the planting areas and prevent the deposit of material onto
paved areas. Any fertilizer deposited on paved areas shall be removed immediately. 
  

	B.	Drainage 

  
 Contractor shall be responsible for periodic inspection of surface drains located within the landscaped areas. These drains shall be checked to assure
proper functioning prior to inclement weather. Contractor shall remove any debris or vegetation that may accumulate at the inlet and prevent proper flow of water. 
  

	C.	Soil Analysis and Plant Testing 

  
 Contractor may be directed to take samples of soil or plant tissues for testing purposes. These tests shall be used to determine specific causes of plant
failure, fertility levels, etc. If these tests are requested the laboratory costs will be paid for by KRC. Labor cost as a result of taking the test is part of base contract. 
  

	D.	Pesticides 

  
 All materials shall be in strict accordance with the Food and Agricultural Code. Application to be as follows: 
  

	 	1.	KRC shall be notified twenty-four (24) hours prior to every chemical application. 

  

	 	2.	All pesticides used must meet the standards established by the Dept. of California Law and Provisions. 

  

	 	3.	Pesticides shall be applied at times which limit the possibility of contamination from climatic and other factors. Applicator shall monitor forecasted weather conditions to avoid
making applications prior to inclement weather to eliminate potential runoff of treated areas. When water is required to increase pesticide efficiency, it shall be applied only in quantities that each area is capable of receiving without excessive
runoff. No chemical can be left unattended. 

  

	 	4.	Care shall be taken in transferring and mixing pesticides to prevent contaminating areas outside the target area. Application methods shall be used which ensure that materials are
confined to the target area. 

  

			
	Landscaping Specs	 	Page 5 of 5

	 	    	Disposal of pesticides shall be within the guidelines established in the California Food and Agricultural code. 

  

	E.	Rodent Control 

  
 Contractor shall be responsible for controlling all rodents in landscaped areas and damages incurred. 
  

	F.	Weed Control 

  
 Contractor will be responsible for removing weeds in all landscape and hardscape areas. When property is adjacent to undeveloped land or railroad spur,
there shall be a ten (10) foot buffer zone kept free of weeds and debris as part of this Contract. Removal of tumbleweeds is part of this Contract. 
  

	G.	Water Conservation 

  
 Contractor is responsible for obtaining water usage restrictions for property from applicable water district. 
  

	ll.	PLANT MATERIALS 

  

	A.	Turf 

  

	 	1.	Fertilization: Fertilize turf as required to maintain a lush, green appearance and perpetual growth. Use of a complete fertilizer that provides N-P-K shall be used six (6)
times per year. 

  

	 	2.	Edging: 

  

	 	a.	All turf edges adjacent to walks, curbs, paved areas, fixtures at grade, and shrub or ground cover areas shall be trimmed with a power edger or weed eater on a bimonthly basis to
maintain a crisp and neat appearance. 

  

	 	b.	A six (6”) inch bare drift buffer zone shall be maintained around the circumference of all trees buildings and raised fixtures in the turf. 

  

	 	c.	Care shall be exercised with regard to the use of weedeaters to prevent damage to trees, building surfaces, walls, header board. light fixtures, signage, etc.

  

	 	3.	Mowing: 

  

	 	a.	Turf shall be mowed and clippings removed on a weekly basis except months November through March when mulch mowers are 

  

			
	Landscaping Specs	 	Page 6 of 6

	 	    	allowed. Bimonthly mowing is acceptable on fescue only as needed to maintain neat appearance. 

  

	 	b.	Cut cool season turf at least two and one half (21/2”) inches during warm season and reduce to two (2”) inches during cool seasons.

  

	 	c.	Cut warm season turf at two to three (2-3”) inches. 

  

	 	d.	Turf shall be cut at a uniform height. 

  

	 	e.	Turf shall be cut with sharp blades. 

  

	 	f.	Mowing patterns shall be changed weekly to avoid rutting. 

  

	 	g.	Care shall be exercised during the mowing operation to prevent damage to trees and other obstacles in the lawn areas such as electrical boxes, fixtures, buildings and signage.

  

	 	h.	No mowing shall be performed in wet conditions. 

  

	 	i.	Use of mulching mowers are authorized during the months of November through March. 

  

	 	j	Use of riding mowers are authorized on large open turf areas. 

  

	 	4.	Weed, Pest and Disease Control: 

  

	 	a.	Contractor shall maintain weed, pest and disease-free turf areas at all times by either chemical or mechanical means. 

  

	 	b.	Contractor is responsible for broadcasting turf with pre-emergent chemical to eliminate crab grass during winter months. 

  

	 	5.	Watering: 

  

	 	a.	Operate irrigation system to obtain 100% coverage and maintain uniform moisture throughout root zone. 

  

	 	b.	Use repeat cycles to maximize penetration and minimize runoff. 

  

	 	c.	Allow soil in turf areas sufficient time to dry prior to mowing to minimize soil compaction. 

  

			
	Landscaping Specs	 	Page 7 of 7

	B.	Ground Cover 

  

	 	1.	Fertilization: Fertilize ground cover as required to maintain a lush, green appearance and maintain perpetual growth. Fertilize four (4) times per year using a complete
fertilizer that provides N-P-K shall be used. 

  

	 	2.	Edging and Trimming: 

  

	 	a.	Adjacent walks, curbs, paved areas, buildings, shrubs, trees and other miscellaneous objects in ground cover areas shall be edged as needed to maintain a neat, clean, well-defined
edge. 

  

	 	b.	A four (4”) to six (6”) inch bare dirt clearance shall be maintained around the circumference of all trees, shrubs, signs, etc. in ground cover and adjacent building
structures. 

  

	 	c.	The use of growth retardants is acceptable with prior approval from KRC. 

  

	 	3.	Weed, Pest and Disease Control: 

  

	 	a.	Contractor shall maintain a weed, pest and disease-free ground cover at all times. 

  

	 	b.	Minimal weed growth is acceptable beneath ground cover height with prior approval from KRC . 

  

	 	4.	Watering: Contractor shall schedule water application to product a deep-rooted cover, i.e. short periods with repeat cycles. 

  

	C.	Shrubs 

  

	 	1.	Fertilization 

  

	 	a.	Fertilize shrubs as required to maintain a lush, green appearance and perpetual growth. Fertilize four (4) times per year with a complete fertilizer that provides N-P-K.

  

	 	b.	Contractor shall be responsible for applying all materials required to correct mineral deficiencies affecting plant growth. 

  

	 	2.	Pruning 

  

	 	a.	Pruning of shrubs shall be performed to attain maximum desired effect or purpose while retaining as much of the natural characteristics or branching as possible.

	 	b.	Shrubs shall be pruned as required for safety, removal of broken or diseased branches, general containment or appearance. 

  

	 	c.	Natural Shape: The intent is to emphasize the natural form of the shrub. Initially “pinch prune” to keep compact and develop structure. Ultimately, annually remove fifty
(50%) percent of old stems to the ground to rejuvenate. 

  

	 	d.	Formal Hedge: It is the intent of the Ligustrum, Escallonia, Xylsome and Japanese Boxwood shrubs to have straight, crisp edges. Shearing is an acceptable method of pruning these
varieties. 

  

	 	e.	Pruning at the correct time of year is essential to maximize flowering potential. 

  

	 	3.	Weed, Pest and Disease Control: Contractor shall maintain weed, pest and disease-free shrub beds at all times. Apply appropriate chemicals as required to control and prevent.

  

	 	4.	Growth Retardant: The use of growth retardant is acceptable with prior approval from KRC. 

  

	D.	Vines 

  

	 	1.	Fertilization: Fertilize vines as required to maintain a lush, green appearance and perpetual growth. 

  

	 	2.	Pruning: 

  

	 	a.	Vines and espalier plants shall be checked and retied as required. 

  

	 	b.	Do not use nails to secure vines on masonry walls. 

  

	 	c.	Prune all vines using accepted horticultural practices as indicated in “Sunset Pruning Handbook.” 

  

	 	d.	Vines shall be pruned and maintained so as not to obstruct fixtures, signs, windows, etc. 

  

	 	3.	Watering: Water as necessary to provide optimum growth within applicable allocations. 

  

			
	Landscaping Specs	 	Page 9 of 9

	E.	Color 

  

	 	1.	Fertilization: All color shall be fertilized a minimum of one (1) time per month with a pre-approved fertilizer that will maintain a lush, colorful appearance and perpetual
growth. 

  

	 	2.	Pruning: Remove dead or faded blossoms, stems and foliage a minimum of one (1) time per month to encourage continued blooming and maintain a neat appearance.

  

	 	3.	Weed, Pest and Disease Control: Contractor shall maintain weed and pest-free color beds. Apply appropriate chemicals as required to control and prevent disease.

  

	 	4.	Watering: Water as required to promote optimum growth. Care shall be exercised to prevent eroding of container soil or excess run off from drainage holes in pots onto the
hardscape. 

  

	 	5.	Planting: All annual color shall be provided and planted by Contractor as part of Contract. Labor to prepare and amend color beds is part of Contract. In addition to the
monthly maintenance cost, Contractor shall bill KRC for flats of color actually installed and approved by KRC. Contractor shall not accept color if product is in poor condition. 

  

	F.	Trees 

  
 No tree work shall be done without prior approval and direction from KRC. 
  

	 	1.	Pruning: 

  

	 	a.	Trees shall be pruned as required to remove broken, diseased branches or for general containment. It shall be Contractor’s prime responsibility related to pruning to conduct a
pruning program which must be approved by KRC. This program should develop proper tree scaffolding, strength and appearance consistent with intended use. 

  

	 	b.	Pruning shall be done by those experienced and skilled in pruning techniques. All cuts shall be done using proper horticulture practices. 

  

	 	c.	Pruning under this specification is limited to that which may be done from the ground. 

  

			
	Landscaping Specs	 	Page 10 of 10

	 	d.	Prune trees to allow for necessary clearances for pedestrians and vehicle circulation. Minimum canopy clearance of eight (8’) feet, maximum fifteen (15’) feet.

  

	 	2.	Pest and Disease Control: Apply all chemical controls as required to control or prevent pests and disease. 

  

	 	3.	Tree Bracing: Tree stakes, ties and guys shall be checked and corrected as needed. Ties will be adjusted to prevent girdling. Remove unneeded stakes, ties and guys as
directed. Lodge pole and twist tie replacement (due to inclement weather) is part of this Contract. 

  

	 	4.	Fertilization of Trees: Fertilize all trees to maintain a lush, green appearance and perpetual growth. Fertilize with a complete fertilizer that provides N-P-K. May require
deep root feeding or foliage application. 

  

	IV.	Irrigation System 

  

	 	1.	Controllers 

  
  

	 	1.	Contractor is to adjust the watering schedule equal to the Evapotranspiration rate each plant is capable of receiving based on topography, soil type, plant material, season or
climatic factors. Contractor shall notify KRC, of any schedule changes. 

  

	 	2.	Contractor shall utilize repeat cycle on controller to eliminate excessive runoff. 

  

	 	3.	Hours of scheduled operation will be programmed to minimize disease occurrence of plant material. 

  

	 	4.	Schedule operation to reduce possible nuisance from sprinkler operation to pedestrians or vehicles. Vehicles which become wet from Contractor operating the irrigation system during
working hours and require special detailing shall be at Contractor’s expense. 

  

	 	5.	Scheduled operation other than 9:00 p.m. to 6:00 a.m. must be approved by KRC. 

  

	 	6.	Contractor shall perform preventive maintenance as needed. 

  

	 	7.	Controller maps are property of KRC. Lost or damaged maps will be replaced at the Contractor’s expense. Copies of controller maps shall be kept in enclosures at all times.

  

			
	Landscaping Specs	 	Page 11 of 11

	 	8.	Contractor is responsible for maintenance of the interiors of controller enclosures. 

  

	 	9.	Contractor shall be responsible to notify KRC of any additional water requirements required to the landscape above allocated amount prior to the application.

  

	B.	Operation of System 

  

	 	1.	All systems shall be personally observed by Contractor during operation cycle a minimum of once per month on Saturday. Sunday or during off-hours to verify effectiveness of
sprinkler operation. 

  

	 	2.	Contractor shall adjust and clean as necessary, all sprinkler heads, valves and pressure reducers to continue operation at maximum efficiency and performance.

  

	 	3.	Sprinkler heads in turf areas shall be kept clear of overgrowth which may obstruct maximum operation. To prevent “elephant tracks,” no chemical spraying or weedeating
around head shall be allowed. 

  

	 	4.	Contractor shall be responsible for trimming plant material and making necessary adjustments to riser heights as growth rates indicate. 

  

	 	5.	Contractor shall be responsible for hand watering any pots not provided with an irrigation system to maintain plant to promote optimum growth. 

  

	 	6.	Adjustments in operating pressure shall be made for each valve for optimum efficiency unless instructed otherwise by KRC. 

  

	 	7	Contractor shall be responsible to perform weekly meter reads and report usage to KRC each week (if required by KRC or Owner’s Representative). 

  

	 	8.	Contractor shall monitor plant performance and notify KRC of any stress signs or excess watering signs. 

  

	C.	Repairs 

  

	 	1.	Any repairs made by Contractor will be in accordance with current practices or as directed by KRC. Current practices are: 

  

	 	a.	Use of Rainbird 1800 series matched precipitation heads for all replacements, or match existing heads whenever possible. 

  

	 	b.	All heads on triple swing joints. 

  

			
	Landscaping Specs	 	Page 12 of 12

	 	c.	As heads on risers break, they will be replaced with pop-ups if adjacent to traffic areas or walkways. 

  

	 	d.	As impact heads break, replace with Hunter Rotors. 

  

	 	2.	Repairs to the irrigation system caused by conditions under which the Contractor does not have direct control shall be paid for by KRC as extra work. Repairs under this shall be
vandalism, normal wear and tear, and storm damage (acts of God). It shall be Contractor’s responsibility to report such conditions immediately to KRC. 

  

	 	3.	Malfunctions of any nature which are deemed to be the fault of materials or workmanship still covered under original installation guarantee shall be reported immediately to KRC.

  

	 	4.	Contractor must submit itemized irrigation invoices for repairs, per property on a monthly basis that include the following information: 

  

	 	a.	Date of repair, nature of repair. 

  

	 	b.	Site map to illustrate location of repair. 

  

	IV.	CUSTODIAL/CLEANUP WORK 

  

	A.	Debris 

  

	 	1.	Contractor shall remove all debris resulting from the maintenance operations and dispose of it. All grass clippings deposited on roadways or walks shall be picked up after each
mowing or trimming operation. No debris will be allowed to remain at the end of the work day. 

  

	 	2.	No debris shall be blown onto public property per city code. 

  

	 	3.	Use of all blowers must be done in the early morning and must comply with all city ordinances for use and time of use. 

  

	 	4.	No dumping in on-site dumpsters unless authorized by KRC. 

  

	 	5.	Green waste bins may be located on-site at contractors expense with authorization by KRC. 

  

	B.	Walkways 

  
 All walkways shall be cleaned of debris and trash shall be picked up off hardscape and landscape areas during weekly service. 
  

			
	Landscaping Specs	 	Page 13 of 13

	C.	Landscaped Areas 

  

	 	1.	Debris, leaves and rubbish in landscaped areas shall be removed during weekly service. 

  

	 	2.	All landscape areas shall be patrolled weekly to check for vandalism, broken tree branches, rodents, snails, insects, pests, disease, etc. 

  

	D.	Dumpsters 

  
 All dumpster areas shall be cleaned on a pre-approved frequency to be directed by KRC. This cleanup shall consist of putting out the dumpsters and
sweeping or hosing down the enclosure and then returning the dumpsters to the enclosure. Large household items, i.e. couches and mattresses, left in dumpster enclosures will be removed and transported to the dump as extra work. 
  

	Vl.	EXTRAS 

  

	A.	Weed Control 

  
 When property is adjacent to undeveloped land or railroad spur, there shall be a ten (10’) foot buffer zone kept free of weeds and debris as a part
of this Contract. 
  

	B.	Aeration of Plant Material 

  

	 	1.	To allow for proper water penetration and minimized runoff, mechanically aerate all turf areas to be determined by Owner Representative. 

  

	 	2.	Use a plug aerator with three (3”) inch tines. Eighty (80%) percent of plugs shall be removed by Contractor at time aeration occurs. 

  

	C.	Thatching/Overseeding of Plant Materials 

  

	 	1.	As needed, thatch in October, as directed by KRC. 

  

	 	2.	Do not thatch fescue unless directed by KRC. 

  

	 	3.	Overseed all bermuda turf areas with ten (10) pounds per thousand (1,000) square feet of perennial rye grass seeds. Prior to overseeding, mow all bermuda grass areas to
three-fourths (3/4”) inch. 

  

	D.	Moving of Ground Cover 

  
 Contractor shall mow ground cover beds as directed by KRC. 
  

			
	Landscaping Specs	 	Page 14 of 14

	E.	Mulch 

  
 Contractor shall maintain mulch with a two inch (2”) depth at all times. Contractor to re-apply mulch a minimum of one time per year at Owner
Representative request at an extra cost. KRC shall determine the variety of mulch to be used on all properties. 
  

	F.	Surface Root Removal of Trees 

  
 Surface roots up to three inches in diameter (3”) which become maintenance, appearance or liability problems will be removed as required to prevent
damage to adjacent paved areas. 
  

			
	Landscaping Specs	 	Page 15 of 15

  
 EXHIBIT K 

 
 KILROY CENTRE DEL MAR 
  
 SECURITY SERVICE SPECIFICATIONS 
  
 [ATTACHED] 
  
 EXHIBIT K 
  
 - 1 - 
  
 Kilroy Realty 
  
 Kilroy Centre Del Mar 
  
 [Memec LLC] 

 Security Services Specifications 
  

	I.	GENERAL INFORMATION 

  

	A.    Definitions	- Wherever these words appear in this specification, they shall have the following meaning; 

  

	 	1.	Specifications: General information, general and specific requirements, and any supplements, drawings, sketches and data sheets, attached or referenced.

  

	 	2.	Contractor: The party or parties executing a contract with the Owner for the work specified herein. 

  

	 	3.	Owner’s Representative: The person designated by Owner as the project representative. 

  

	 	4.	Work: All security services specified, implied or directed. 

  

	 	5.	Approved/Approval: Satisfactory to the Owner’s Representative. 

  

	 	6.	Extra Work: Work beyond Contractor’s normal scope of work. 

  

	 	7.	KRC: Designates of Kilroy Realty Corporation 

  

	B.	Contract Conditions 

  

	 	1.	Licensing: Contractor shall be licensed by the State of California. 

  

	 	2.	Emergency Numbers: Contractor shall provide and maintain a current list of emergency numbers for 24-hour emergency response. Contractor shall initiate remedial action within
one (1) hour of notification. Remedial action shall not exceed three (3) hours without prior approval from KRC. Contractor shall notify KRC of the call-out and any action taken within twelve (12) hours of the call-out. 

  

	 	3.	Protection of Property: Contractor shall exercise due care in protecting from damage all existing facilities, structures and utilities, both above-surface and underground, on
property. Any damage to property deemed to be caused by Contractor’s negligence shall be corrected or paid for at Contractor’s sole expense. Additionally, Contractor shall report any storm damage to KRC immediately. If remedial work is
requested beyond scope of this contract, it shall be paid as extra work. 

  

 - 1 - 

	 	4.	Inspections: Upon request, Contractor shall walk the property with KRC. 

  

	 	5.	Schedule: Contractor shall give KRC a schedule of service days and times prior to commencement of work. Contractor will provide KRC with 48 hours advance notice for any
schedule deviations. 

  

	 	6.	Supervision: Supervision of all work must be performed by Contractor, or another competent person, who can communicate in English with KRC, both orally and in writing.

  

	 	7.	Reporting: Contractor shall provide KRC with reports regarding services if requested, at no additional charge. 

  

	 	8.	Dress Code: Contractor shall be required to provide uniforms or other KRC approved methods of employee identification for all personnel working on the property. All personnel
shall present a neat, clean appearance. 

  

	 	9.	Cleanup: Contractor shall remove all debris resulting from the maintenance operations and dispose of same off-site. NO ON-SITE DUMPING. 

  

	 	10.	Payment: Contractor shall present the monthly invoice, properly coded, for the base contract. All invoices shall be itemized to show material and labor costs. Any work
performed as “extra work” shall be billed on a separate invoice with a detailing of the location, time and materials involved in extra work. All invoices for each fiscal year shall be submitted by December 2 of that year. Any invoices
submitted after December 2, will not be paid. 

  

	 	11.	Back Charges: Back charges will be deducted directly from contract invoice payments to include, but not limited to; 

  

	 	a.	Lost locks or keys. 

	 	b.	Damage of property due to Contractor negligence. 

  

	 	12.	Insurance: Throughout contract term, Contractor shall provide proof of insurance with an “A” rated insurance provider to KRC in the form of an original Certificate
of Insurance. Certificate shall reference the property, name additional insured as requested by KRC and abide by the following limits of liability: 

  

			
	 Comprehensive General Liability
	  	$2 Million
	 Automobile Collision
	  	$1 Million
	 Worker’s Compensation
	  	$1 Million

  

 - 2 - 

 Without evidence of current insurance, Contract will be invalid and Contractor shall be prohibited from
property. 
  

	II.	Services to be Performed 

  
 The description of services outlined below should be referred to as a guide rather than a limitation on duties or obligations to KRC or Owner’s Representative, since
the intent of the Agreement is to provide a comprehensive security and related fire and life safety monitoring. 
  
 1. Contractor’s General Responsibilities. Contractor will provide security services for all stories of the Building, the
parking garage (“Garage”) and perimeter and grounds (“Plaza”). Contractor will employ a staff which shall perform security services, according to the specifications which are provided herein. 
  
 2. Contractor’s Specific Responsibilities. In
addition to assuming the general responsibilities described in Section 1. Contractor shall: 
  
 (a) Record, in the Daily Activity Report, all reported or observed accidents, incidents, damage, breakage, and/or apparent plumbing or
electrical problems in or about the Building and immediately report all such matters to Building Management; 
  
 (b) Be thoroughly familiar with the Building’s emergency telephone list and procedures; 
  
 (c) Record, in the Building’s Security Log Book or
Daily Activity Reports, any evidence of Building security breaches and immediately report all such matters to Building Management; 
  
 (d) Maintain the Command Center and lobby console desk in a neat and clean condition at all times; 
  
 (e) Lock and unlock the loading dock entry door and the
Building entry doors and restrict access to the Building, as directed by KRC or Owner’s Representative during restricted access hours established by KRC or Owner’s Representative unless individuals present valid access cards or have
properly secured approval from the Building Management Office; 
  
 (f) Provide roving security officer(s) who shall tour (walking) the Building, Plaza, sidewalks, internal stairwells and the Garage to insure that the Building and surrounding areas are secure from access by
unauthorized persons and who shall respond to any observed or reported disturbances; 
  

 - 3 - 

 (g) Provide Console security officer(s) to view and control the various CCTV camera
monitors in and around the Building and Garage, fire and life safety monitors, intercom systems, and all other related Building and security alarms, and control after-hours access; 
  
 (h) Provide security officer(s) at the lobby console who shall insure the safe and efficient usage of the
freight elevator; making sure all contractors and vendors sign in/out; 
  
 (i) Employ skilled and competent employees to perform the services set forth herein and provide all manpower required to operate and monitor the security, the Building fire and life safety systems and the Fire Control
Room, provided that any employee who causes any breach of peace or other disturbance or who is otherwise found to be unacceptable by KRC or Owner’s Representative shall be immediately discharged or transferred and thereafter replaced by
Contractor. All Contractor’s employees shall prominently display an identification badge issued by KRC or Owner’s Representative, while performing services in or about the Building; 
  
 (j) Require that all employees present a clean and neat
appearance at all times. Contractor shall provide uniforms for all employees. Uniforms shall be replaced as required or requested by KRC or Owner’s Representative at Contractor’s sole expense when any negligence, misuse, loss or theft by
Contractor or its employees has taken place; 
  
 (k) Maintain and show evidence of an adequate management level supervisory staff who shall make weekly scheduled and unscheduled visits to the Building, during normal business hours, week nights, weekends and holidays, to insure that the
security staff is performing services as required by the Agreement. A written report of such inspections and findings shall be rendered within five (5) working days after inspection, or as such inspections occur. A schedule shall be provided to KRC
or Owner’s Representative on the first day of every month identifying intended inspection dates; 
  
 (l) Receive from Contractor hand-held walkie-talkies which will be utilized by the security officers for internal communications. All
communications equipment shall be kept in first-class working order by Contractor at all times and shall be replaced (with identical equipment) when lost and/or becomes defective as a result of Contractor’s misuse or neglect at
Contractor’s sole expense. Contractor is to provide KRC or Owner’s Representative with a list of equipment serial numbers to monitor the equipment received by KRC or Owner’s Representative or replaced by Contractor; 
  
 (m) Provide to KRC or Owner’s Representative, prior to
commencement of any work hereunder, a detailed roster and schedule setting forth Contractor’s security staff and the specific assignments of each employee; 
  

 - 4 - 

 (n) Require that all security officers shall be interviewed and approved by KRC or
Owner’s Representative prior to the commencement of services under this Agreement. Contractor shall submit, prior to each interview, a detailed and up-to-date job application and a copy of the employee’s California Guard Card. Background
checks of the individual shall be performed by Contractor and a copy shall be attached to the job application. Unless otherwise instructed by KRC or Owner’s Representative, security officers assigned for interview should be advised before such
interview as to the expected rate of pay, post assignment, duties, shift hours and days off. Approval of an officer by KRC or Owner’s Representative shall not imply or indicate that KRC or Owner’s Representative assumes any responsibility
for the performance by any security officer, and Contractor remains fully responsible for the activities and performance of each of its employees; 
  
 (o) Require that all of Contractor’s employees participate in the Transportation System Management Plan established for the Building
and park in designated locations to be determined by KRC or Owner’s Representative pursuant to the Transportation System Management Plan; 
  
 (p) Maintain all logs, reports, programs and compilations, necessary or required hereunder, which shall be and remain the sole property of
KRC or Owner’s Representative and shall be available for review by KRC or Owner’s Representative at any time during the term hereof and shall be surrendered to KRC or Owner’s Representative upon the expiration or earlier termination
of this Agreement. Contractor shall, at any time during the term of this Agreement, upon request of KRC or Owner’s Representative, render a report of incidents, work schedules, equipment, inventory, staffing, payroll verification or any such
related events at the Building; 
  
 (s) Maintain
and show evidence of an adequate back-up force and supervisory staff to be able to assist the Building security staff immediately in case of emergency, i.e. flood, earthquake, or fire; 
  
 (t) Submit a list to KRC or Owner’s Representative of at least three (3) emergency telephone numbers,
other than the local branch office number or answering service, who are authorized to dispatch back-up personnel in the event of a request by KRC or Owner’s Representative for such services. Contractor shall update these emergency telephone
numbers, as required, but no less than every month throughout the term of this Agreement; 
  

 - 5 - 

 (u) Provide an on-site Security Director and supervisory staff assigned exclusively to
the Building to maintain the optimum level of security coverage defined herein. Such security personnel shall be responsible to perform (at a minimum) the following: 
  
 (1) Security Director shall be fully aware of all items and duties specifically set forth and shall schedule
all security officers in such a manner so as to insure that adequate security coverage is always maintained; 
  
 (2) Security Director shall supervise the entire security staff and shall be responsible to schedule replacement or back-up employees to
cover absentee or vacationing security officers; 
  
 (3) Security personnel shall provide immediate notification of all accidents, incidents, and/or damage reports to Security Director by completing the required forms, reports and/or logs; 
  
 (4) All security personnel shall become familiar with the
emergency fire and disaster plans for the Building and the duties assigned to them as they relate to these plans; 
  
 (5) Shift supervisors shall be available on request by Security Director during normal business hours to visit the management staff (or
other designated individuals) to review operations and answer complaints of any nature relating to Contractor’s performance and/or staff; 
  
 (v) Comply with the following staffing and back-up requirements: 
  
 (1) Staffing shall provide the coverage as specified herein to maintain an optimum level of security in the
Building. No shifts and/or positions will be left uncovered at any time; 
  
 (2) No security officer assigned to the Building shall work more than fifty-five (55) hours in any week (this includes all temporary replacement employees) without the prior written permission of KRC or Owner’s
Representative; 
  
 (w) Require that security
officers assigned to the Building shall receive a minimum of sixteen (16) hours on-site training paid for by Contractor as part of Contractor’s general overhead; 
  
 (x) Be liable for any false alarms and/or activation of the Building fire and life safety system as a direct
or indirect result of Contractor’s services being performed. KRC or Owner’s Representative reserves the right to charge-back to Contractor a fee of One Hundred Dollars ($100.00) for each false alarm occurrence; and 
  
 (y) Provide to KRC or Owner’s Representative, prior to
commencement of any work hereunder, evidence that Contractor has been issued the required licenses and permits which shall certify that Contractor is 
  

 - 6 - 

 approved and licensed to perform its services as herein specified. In addition, Contractor shall furnish
KRC or Owner’s Representative, annually upon each anniversary of the date hereof and upon request from KRC or Owner’s Representative at any time during the term hereof, with current, valid copies of all required licenses and permits.

  

	Ill.	Security Staff Levels 

  
 It is the intent of this section of the Agreement to establish the base building security staff to be provided by Contractor to the Building. 

 
 The major responsibilities of the positions described below should be
referred to as a guide rather than a limitation on duties or obligations to KRC or Owner’s Representative as the intent of the Agreement is to have the Building secured at all times. 
  
 Personnel to be provided by Contractor shall be in uniform at all times during the daily tours and shall not leave the
Building wearing them. 
  
 Contractor shall provide sufficient
staffing to cover the number of hours required for each position as hereinafter noted and shall comply with all labor laws of the city, state and federal agencies having jurisdiction. 
  

	A.	Security Director (On-site Working Supervisor) 

  
 Reports to: KRC or Owner’s Representative 
  
 Position Summary: Supervises all on-site security staff personnel and assists in the daily security and fire/life safety operations of the Building. 
  
 Requirements: 
  

	(1)	Have prior security supervisory experience and/or related training. 

  

	(2)	Knowledgeable in all phases of building security and fire and life safety procedures. 

  

	(3)	Administrative responsibility in setting work priorities, scheduling and training employees, and procuring supplies and materials. 

  

	(4)	Good communication skills and an ability to work well with management, tenants and employees. 

  

 - 7 - 

 Major Responsibilities: 

	(1)	Develop and implement policies and goals of the Security Department. 

  

	(2)	Complete assignments for KRC or Owner’s Representative in a timely and thorough manner. 

  

	(3)	Regularly report to the building management on the status of security at the site. 

  

	(4)	Interact in a positive way with building management, tenants, visitors and contractors. 

  

	(5)	Establish a liaison between the Contractor’s account manager, site security and building management. 

  

	(6)	Coordinate and report to building management the status of security systems monitored by security. 

  

	(7)	Provide advice and counsel to KRC or Owner’s Representative on matters involving security. 

  

	(8)	Conduct training for all tenants within the Building. 

  

	(9)	Officer interviewing, selection and orientation. 

  

	(10)	Officer discipline and commendations. 

  

	(11)	View CCTV monitor when at lobby console. Operate computer-based CCTV camera controllers and video recorders. 

  

	(12)	Assist visitors to the Building during normal business hours, and provide directions to tenant areas, retail spaces or elevator banks. 

  

	(13)	Observe, monitor and control all entries to the Building, after normal business hours, utilizing the access card reader (located within the console) to verify authorized entry or
other security controls established by KRC or Owner’s Representative. 

  

	(14)	Direct all individuals who are making deliveries (other than items which may be hand carried) to the Building to utilize the loading dock elevator during normal business hours.
Under no circumstances will any security officer accept deliveries or sign for any packages unless KRC or Owner’s Representative provides prior written approval. KRC or Owner’s 

  

 - 8 - 

	    	Representative shall provide written procedures on the handling of all deliveries and pick-ups after normal business hours. 

  

	(15)	Communicate with lobby console or roving security officers (using hand-held walkie-talkies, intercom or telephone systems) of any observed problems in general area of visual
surveillance or viewed on CCTV monitor. 

  

	(16)	Officer training and testing. 

  

	(17)	Assure maintenance of appropriate documentation, record keeping and payroll sheets. 

  

	(18)	Monitor and review payroll entries, adjustments, pay rate changes and reconciliation matters. 

  

	(19)	Oversee security operations at the Building. 

  

	(20)	Interact with the local Fire Department on C.A.C. 19 requirements. 

  

	(21)	Be available on a 24-hour basis to respond to Building emergencies. 

  

	(22)	Assist KRC or Owner’s Representative in implementing the emergency procedures established for the Building. Assist KRC or Owner’s Representative in the operation of the
Building fire and life safety systems in an emergency situation in the absence of KRC or Owner’s Representative, take responsibility to implement emergency procedures. 

  

	(23)	Coordinate the training and orientation of the entire Security Department. Assign and train all personnel in lobby console and Fire Control Room procedures. Oversee all reports,
logs and pass-ons for lobby console and Fire Control Room. 

  

	(24)	Review all reports, policies and procedures in the Security Department. 

  

	(25)	Manage and supervise all sub-departments within the Security Department, i.e., fire control room, lobby console and loading dock. 

  

	(26)	Manage and regulate all systems used by Security Department, i.e., fire system, building elevators, CCTV system, and security trunk. 

  

	(27)	Manage inventory of equipment, i.e., radios, uniforms, keys, flashlights, etc. 

  

	(28)	Generate, edit and distribute all paperwork for Security Department, i.e., procedures, memos, reports and miscellaneous forms. 

  

 - 9 - 

	(29)	Generate all work orders and attached paperwork for extra security coverage beyond established “base building” hours. 

  

	(30)	Maintain the Building Security Log Book and record all incidents. 

  

	(31)	Monitor status and alarms on fire and life safety systems (including emergency generator, if applicable) and inform KRC or Owner’s Representative immediately of any alarms, the
device in alarm and its location. 

  

	(32)	Monitor status and alarms on Building Automation System and inform engineering staff and KRC or Owner’s Representative immediately of any alarms, the device or system in alarm
and its location. 

  

	(33)	Monitor status, alarms and intercom systems associated with the Building’s elevators (passenger, handicapped, service/freight) and inform KRC or Owner’s Representative and
elevator maintenance services contractor immediately of any malfunction or alarm condition that may arise. 

  

	(34)	Monitor status and alarms on all stairtower doors as well as monitor the stairtower intercoms and inform KRC or Owner’s Representative immediately of any breach of security
after having firstly had roving security officer investigate the area. 

  

	(35)	Monitor status and alarms of tenant special fire suppression systems and inform tenant and KRC or Owner’s Representative immediately of any change in status.

  

	(36)	Monitor the garage elevator lobby intercom system and inform KRC or Owner’s Representative and Parking Operator of any incidents immediately. 

  

	(37)	Enter work orders to janitorial and engineers during after hours. 

  

	(38)	Monitor and shutdown elevators during after hours when necessary. 

  

	(39)	Answer the phones for Building Management Office during after hours at lobby console. 

  

 - 10 - 

	B.	Shift Supervisors 

  
 Major Responsibilities: 
  

	(1)	Supervise, train and direct security staff reporting to supervisor. 

  

	(2)	Schedule security officers to insure required coverage is maintained at all times. 

  

	(3)	Provide necessary training of all new or temporary replacement (for absentees) officers to insure that they are completely familiar with the responsibilities of the officers they
are replacing. 

  

	(4)	Review daily with KRC or Owner’s Representative or KRC or Owner’s Representative’s designated representative all logs and incident reports. 

 

	(5)	Tour the Building daily to insure all officers are performing assignments as required. 

  

	(6)	Inform KRC or Owner’s Representative immediately of any breach of security or apparent emergency situation. 

  

	(7)	Assist Security Director in implementing the emergency procedures established for the Building. Assist Security Director in the operation of the Building fire and life safety
systems in an emergency situation. In the absence of KRC or Owner’s Representative, Security Director takes responsibility to implement emergency procedures. 

  

	(8)	View CCTV monitor when at lobby console. Operate computer-based CCTV camera controllers and video recorders. 

  

	(9)	Assist visitors to the Building during normal business hours, and provide directions to tenant areas, retail spaces or elevator banks. 

  

	(10)	Observe, monitor and control all entries to the Building, after normal business hours, utilizing the access card reader (located within the console) to verify authorized entry or
other security controls established by KRC or Owner’s Representative. 

  

	(11)	Direct all individuals who are making deliveries (other than items which may be hand carried) to the Building to utilize the loading dock elevator during normal business hours.
Under no circumstances will any security officer accept deliveries or sign for any packages unless KRC or Owner’s Representative provides prior written approval. KRC or Owner’s Representative shall provide written procedures on the
handling of all deliveries and pick-ups after normal business hours. 

  

 - 11 - 

	(12)	Communicate with lobby console or roving security officers (using hand-held walkie-talkies, intercom or telephone systems) of any observed problems in general area of visual
surveillance or viewed on CCTV monitor. 

  

	(13)	Be available to meet with KRC or Owner’s Representative or KRC or Owner’s Representative’s designated representative to review operations and to meet with tenants to
discuss security related matters. 

  

	(14)	Coordinate issuance of identification badges to all vendors or contractors performing work in or about the Building. 

  

	(15)	Maintain the Building Security Log Book and record all incidents. 

  

	(16)	Monitor status and alarms on Building Automation System and inform engineering staff and KRC or Owner’s Representative immediately of any alarms, the device or system in alarm
and its location. 

  

	(17)	Monitor status, alarms and intercom systems associated with the Building’s elevators (passenger, handicapped, service/freight) and inform KRC or Owner’s Representative and
elevator maintenance services contractor immediately of any malfunction or alarm condition that may arise. 

  

	(18)	Monitor status and alarms on all stairtower doors as well as monitor the stairtower intercoms and inform KRC or Owner’s Representative immediately of any breach of security
after having firstly had roving security officer investigate the area. 

  

	(19)	Monitor status and alarms of tenant special fire-suppression systems and inform tenant and KRC or Owner’s Representative immediately of any change in status.

  

	(20)	Monitor the garage elevator lobby intercom system and inform KRC or Owner’s Representative and Parking Operator of any incidents immediately. 

  

	(21)	Enter work orders to janitorial and engineers during after hours. 

  

	(22)	Monitor and shutdown elevators during after hours when necessary. 

  

	(23)	Answer the phones for Building Management Office during after hours at lobby console. 

  

	(24)	Monitor HVAC on Building Automation Systems for alarms and problems. 

  

 - 12 - 

	C.	Rover 

  
 Major Responsibilities: 
  

	(1)	Lock and unlock entry doors as directed by KRC or Owner’s Representative. 

  

	(2)	Patrol (walking) on a continuous basis the Building’s courts, plazas, sidewalks, internal stairtowers, multi-tenant floor corridors and multi-level subterranean garage to
insure unauthorized individuals are identified and activities monitored. During all patrols, security officers shall note any and all burnt out bulbs/fluorescent tubes, exit lights, fountain heads, number of after-hour vehicles in garage, leaks,
accumulated dirt and debris, damage to walls, floors, ceilings, doors, lock sets, etc., unauthorized storage of material in emergency egress paths (corridor, stairwells, etc.) and potential fire hazards. All noted items shall be reported to security
supervisory personnel after each tour, unless the item is noted as potentially dangerous which should be reported immediately using the hand-held walkie-talkies. 

  

	(3)	Provide, as necessary and scheduled, relief for Lobby Console security officers. Relief Officer shall be completely familiar with the responsibilities of the security officers being
relieved. 

  

	(4)	Assist KRC or Owner’s Representative in the implementation of emergency procedures as they relate to general building security. 

  

	(5)	During after hours operation of the Building, monitor and control entry of all vehicles following all required procedures established by KRC or Owner’s Representative.

  

	(6)	Prior to daily operation of the passenger elevators, security officers shall test the cab intercom system to insure it is operable. 

  

	(7)	Provide as needed an escort to accompany tenant’s employees to their vehicles during hours other than regular office hours. 

  

	(8)	View CCTV monitor when at lobby console. Operate computer-based CCTV camera controllers and video recorders. 

  

	(9)	Assist visitors to the Building during normal business hours, and provide directions to tenant areas, retail spaces or elevator banks. 

  

	(10)	Observe, monitor and control all entries to the Building, after normal business hours, utilizing the access card reader (located within the 

  

 - 13 - 

	    	console) to verify authorized entry or other security controls established by KRC or Owner’s Representative. 

  

	(11)	Direct all individuals who are making deliveries (other than items which may be hand carried) to the Building to utilize the loading dock elevator during normal business hours.
Under no circumstances will any security officer accept deliveries or sign for any packages unless KRC or Owner’s Representative provides prior written approval. KRC or Owner’s Representative shall provide written procedures on the
handling of all deliveries and pick-ups after normal business hours. 

  

	(12)	Communicate with lobby console or roving security officers (using hand-held walkie-talkies, intercom or telephone systems) of any observed problems in general area of visual
surveillance or viewed on CCTV monitor. 

  

	(13)	Assist KRC or Owner’s Representative in the implementation of emergency procedures as they relate to general building security. 

  

	(14)	Monitor status and alarms on Building Automation System and inform engineering staff and KRC or Owner’s Representative immediately of any alarms, the device or system in alarm
and its location. 

  

	(15)	Monitor status, alarms and intercom systems associated with the Building’s elevators (passenger, handicapped, service/freight) and inform KRC or Owner’s Representative and
elevator maintenance services contractor immediately of any malfunction or alarm condition that may arise. 

  

	(16)	Monitor status and alarms on all stairtower doors as well as monitor the stairtower intercoms and inform Supervisor immediately of any breach of security. 

 

	(17)	Monitor status and alarms of tenant special fire suppression systems and inform tenant and KRC or Owner’s Representative immediately of any change in status.

  

	(18)	Monitor the garage elevator lobby intercom system and inform KRC or Owner’s Representative and Parking Operator of any incidents immediately. 

  

	(19)	Enter work orders to janitorial and engineers during after hours. 

  

	(20)	Monitor and shutdown elevators during after hours when necessary. 

  

 - 14 - 

	(21)	Answer the phones for Building Management Office during after hours at lobby console. 

  
 Other Post descriptions may be added to these Specifications at the discretion of KRC or Owner’s Representative. 
  

 - 15 - 

 EXHIBIT L 
  
 KILROY CENTRE DEL MAR 
  

FORM OF NON-DISTURBANCE AGREEMENT 
  
 RECORDING REQUESTED BY AND 
 WHEN RECORDED, RETURN TO: 
  

	
	  

	  

	  

	  

	  

	 Above Space for Recorder’s Office Only

  
 SUBORDINATION,

 NON-DISTURBANCE, 
 AND ATTORNMENT AGREEMENT 
  
 THIS SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT (“Agreement”) is made as of              by and among KILROY REALTY, L.P., a Delaware limited partnership (“Lessor”),
            , a              (“Lessee”) and
             (“Lender”). 
  
 R E C I T A L S: 
  
 This Agreement is made with reference to the following facts: 
  
 A. By that certain Office Lease dated              (the “Lease”), Lessor has
leased to Lessee and Lessee has leased from Lessor certain premises (the “Premises”) constituting a portion of that certain property commonly known as              in San
Diego County, California (the “County”) and more particularly described in the Lease and Exhibit A attached hereto (the “Property”). 
  
 B. Lender has made a loan to Lessor in the principal amount of $            , secured
by a deed of trust and assignment of leases and rents covering the Property. 
  
 C. Lessee has agreed that the Lease shall be subject and subordinate to the Deed of Trust, provided Lessee is assured of continued occupancy and quiet enjoyment of the Premises under the terms of the Lease.

  
 D. The parties desire to set forth their agreement concerning
the Lease and their respective rights in connection with any exercise by Lender of its rights and remedies under the Deed of Trust or any other instrument executed in connection therewith (collectively, the “Loan Documents”). 

 
 EXHIBIT L 
  
 - 1 - 

 A G R E E M E N T: 
  
 For good and valuable consideration, receipt of which is acknowledged, the
parties agree as follows: 
  
 1. Definitions. The following terms
shall have the following meanings: 
  
 1.1 “Construction
Obligation” means any obligation of Lessor under the Lease to make, pay for or reimburse Lessee for any alterations, demolition or other improvements or work at the Premises. “Construction Obligation” shall not include: (a)
reconstruction or repair following damage or destruction or condemnation; or (b) Lessor’s maintenance, repair, replacement and compliance with laws or other obligations under the Lease. 
  
 1.2 “Foreclosure Event” means: (a) foreclosure under any of the
Loan Documents; (b) any other exercise by Lender of rights and remedies (whether under the Loan Documents or under applicable laws, including bankruptcy law), as a result of which Successor Lessor becomes owner of the Property or any portion
thereof; or (c) delivery by Lessor to Lender (or its designee or nominee) of a deed or other conveyance of Lessor’s interest in the Property or any portion thereof in lieu of any of the foregoing. 
  
 1.3 “Former Lessor” means Lessor and any other party that was
landlord under the Lease at any time prior to the occurrence of a Foreclosure Event. 
  
 1.4 “Offset Rights” means any right or alleged right of Lessee to any offset, defense (other than one arising from actual payment and performance, which payment and performance would bind a Successor Lessor
pursuant to this Agreement), reduction, deduction or abatement against Lessee’s payment of rent or performance of Lessee’s other obligations under the Lease, arising from Former Lessor’s breach or default under the Lease. 

 
 1.5 “Successor Lessor” means any party that becomes owner of the
Property as the result of a Foreclosure Event. 
  
 2.
Subordination. Subject to Section 3, below, Lender and Lessee do hereby covenant and agree that the Lease, with all rights, options, liens and charges created thereby, is and shall continue to be subject and subordinate in all respects to the
Deed of Trust and to any renewals, modifications, replacements and extensions thereof and to all advancements made thereunder, and Lender hereby consents to the Lease to the extent required pursuant to the Loan Documents. 
  
 3. Non-Disturbance, Recognition and Attornment. 
  
 3.1 Lender shall not name or join Lessee as a defendant in any exercise of
Lender’s rights and remedies arising upon a breach or default under the Loan Documents. 
  
 3.2 Unless the Lease has been terminated by reason of Lessee’s default under the Lease (after receipt by Lessee of notice of such default as required under the Lease and expiration of the cure period, if any,
applicable to such default as set forth in the Lease), then from and after the date upon which Successor Lessor takes title to the Property: 
  
 (a) Successor Lessor shall not affect, impair or disturb Lessee’s possession of the Premises under the Lease; 
  
 (b) Successor Lessor shall recognize all of the rights and privileges of
Lessee under the Lease and shall perform and be bound to Lessee under all of the terms and conditions of the Lease (including, without limitation, all renewal and other options contained therein); 
  
 EXHIBIT L 
  
 - 2 - 

 (c) Lessee shall recognize and attorn to Successor Lessor as Lessee’s direct landlord under the
Lease; and 
  
 (d) the Lease (including, without limitation, all
renewal and other options contained therein) shall continue in full force and effect as a direct lease, in accordance with its terms, between Successor Lessor and Lessee. 
  
 3.3 The provisions of this Article 3 shall be effective and self-operative without any need for Successor Lessor or Lessee
to execute any further documents. Lessee and Successor Lessor shall, however, confirm the provisions of this Article 3 in writing upon request by either of them. 
  
 4. Protection of Successor Lessor. Notwithstanding anything to the contrary contained in this Agreement, Successor
Lessor shall not be liable for or bound by any of the following matters: 
  
 4.1 Any act or omission of any Former Lessor; 
  
 4.2 Any Offset Rights that Lessee may have against any Former Lessor relating to any event occurring prior to the Foreclosure Event, except for the Offset Rights specifically provided in Section 19.6 of the Lease,
provided that Lessee delivers to Lender a copy of any and all notices delivered to the Former Lessor pursuant to such sections, either concurrently with or shortly after delivery of such notices to the Former Lessor. The foregoing shall not limit
Lessee’s exercise of any rights against Successor Lessor expressly available to Lessee under the Lease, if any, because of events occurring or conditions existing from and after the Foreclosure Event; 
  
 4.3 Any payment of rent which Lessee may have paid in advance to any Former
Lessor more than 30 days prior to the date such rent was first due and payable under the Lease with respect to any period after the Foreclosure Event or any period prior thereto in which Lender or a receiver collects rent pursuant to the exercise of
rights under the Loan Documents; 
  
 4.4 Any modification or
amendment of or supplement to the Lease without the prior written consent of Lender, which consent Lender agrees shall not be withheld, delayed or conditioned on matters not relevant to the proposed modification, amendment or supplement; 

 
 4.5 Intentionally Omitted; 
  
 4.6 Any obligation set forth in the Lease to defend, indemnify or hold
harmless Lessee against liability, damage, loss, cost or expense arising out of or relating to the presence, spill or release of any hazardous or toxic substances or materials, except to the extent caused by the acts of Successor Lessor or its
agents or employees; 
  
 4.7 Any obligation to return or credit to
Lessee any security deposit, except to the extent Successor Lessor has actually and unconditionally received such security deposit; 
  
 4.8 Any repairs, restoration or reconstruction of all or any part of the Property the cost of which exceeds the proceeds of any insurance Successor Lessor
actually receives as a result of such damage or destruction. 
  
 4.9 Nothing contained is this Article shall affect Lessee’s rights and remedies against any Former Lessor or Lessee’s right, if any, to terminate the Lease based upon a breach of the Lease, breach of any warranty or
misrepresentation by any Former Lessor. 
  
 EXHIBIT L 

 
 - 3 - 

 5. Notices. Any and all notices by one party to the other shall be in writing and either
personally served or sent by registered or certified mail, postage prepaid, or by a private overnight courier or delivery service, to the address of the other party set forth next to its signature; in addition, copies of notices to Lessor shall be
sent to Allen, Matkins, Leck, Gamble & Mallory LLP, 1901 Avenue of the Stars, Suite 1800, Los Angeles, California 90067, Attention: Anton N. Natsis, Esq. Any party at any time may change its address by notice to the other party in writing given
as provided in this Article. The earlier of (a) the date of receipt or refusal of receipt, or (b) three business days after the date such notice is given in accordance with this Article shall constitute the initial date of notice in computing
the elapsed time as specified in any notice requirement in this Agreement. 
  
 6. Governing Law; Successors and Assigns. This Agreement shall be governed by and construed in accordance with the laws of the state in which the Property is located. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns. 
  
 7. Amendment to Agreement. This Agreement may be modified only by an agreement in writing signed by the parties or their respective successors in interest. This Agreement constitutes the entire agreement
between the parties regarding the subject matter hereof. 
  
 EXHIBIT L 
  
 - 4 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

  

									
	 “Lessee”:
	 	 	 	                                      
                                        
                            
			
	 	 	 	 	a
                                        
                                        
                      
	 Address:
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	  

	[PLEASE PROVIDE]	 	 	 	 	 	 Its:
	 	  

	  

	 	 	 	By:	 	  

	  

	 	 	 	 	 	 Its:
	 	  

	  

	 	 	 	 	 	 	 	 
			
	 	 	 	 	KILROY REALTY, L.P.,
	 “Lessor”:
	 	 	 	a Delaware limited partnership
				
	 Address:
	 	 	 	By:	 	 KILROY REALTY CORPORATION, INC

	 12200 W. Olympic Boulevard,
 Suite 200
 Los Angeles, California 90064
 Attn: Property Management Department
	 	 	 	 	 	 a Maryland corporation,
 general partner

	 	 	 	 	By:	 	  

	 	 	 	 	 	 	 Its:
	 	  

	 	 	 	 	By:	 	  

	 	 	 	 	 	 	 Its:
	 	  

			
	 “Lender”:
	 	 	 	                                      
                                        
                            
			
	 	 	 	 	a
                                        
                                        
                      
	 Address:
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	  

	 	 	 	 	 	 	 Its:
	 	  

	  

	 	 	 	By:	 	  

	  

	 	 	 	 	 	 Its:
	 	  

	  

	 	 	 	 	 	 	 	 
	  

	 	 	 	 	 	 	 	 

  
 EXHIBIT L 

 
 - 5 - 

 EXHIBIT M 
  
 KILROY CENTRE DEL MAR 
  
 TENANT’S DIRECT COMPETITORS 
 (PROJECT NAME RESTRICTION) 
  

	1.	Dallas Semiconductor 

	2.	Maxim 

	3.	Altera 

	4.	Avnet, Inc. 

	5.	Arrow Electronics, Inc. 

	6.	Pioneer Standard Electronics 

	7.	Reptron Electronics 

	8.	All American Semiconductor 

	9.	Future Electronics 

	10.	Richardson Electronics 

	11.	Nu Horizons Electronics Corp. 

	12.	Digi-Key Corporation 

	13.	Sager Electronics 

	14.	TTI 

  
 EXHIBIT M 
  
 - 1 - 

 OFFICE LEASE 
  
 KILROY REALTY 
  
 KILROY CENTRE DEL MAR 
  
 KILROY REALTY, L.P., 
  
 a Delaware limited partnership, 
  
 as Landlord, 
  
 and 
  
 MEMEC, LLC, 
  
 a Delaware limited liability
company, 
  
 as Tenant. 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1
	  	 PREMISES, BUILDING, PROJECT, AND COMMON AREAS
	  	5
	 ARTICLE 2
	  	 LEASE TERM; OPTION TERM(S)
	  	8
	 ARTICLE 3
	  	 BASE RENT
	  	12
	 ARTICLE 4
	  	 ADDITIONAL RENT
	  	13
	 ARTICLE 5
	  	 USE OF PREMISES
	  	21
	 ARTICLE 6
	  	 SERVICES AND UTILITIES
	  	22
	 ARTICLE 7
	  	 REPAIRS
	  	24
	 ARTICLE 8
	  	 ADDITIONS AND ALTERATIONS
	  	25
	 ARTICLE 9
	  	 COVENANT AGAINST LIENS
	  	27
	 ARTICLE 10
	  	 INSURANCE
	  	27
	 ARTICLE 11
	  	 DAMAGE AND DESTRUCTION
	  	30
	 ARTICLE 12
	  	 NONWAIVER
	  	32
	 ARTICLE 13
	  	 CONDEMNATION
	  	32
	 ARTICLE 14
	  	 ASSIGNMENT AND SUBLETTING
	  	33
	 ARTICLE 15
	  	 SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL OF TRADE FIXTURES
	  	37
	 ARTICLE 16
	  	 HOLDING OVER
	  	37
	 ARTICLE 17
	  	 ESTOPPEL CERTIFICATES
	  	38
	 ARTICLE 18
	  	 SUBORDINATION
	  	38
	 ARTICLE 19
	  	 DEFAULTS; REMEDIES
	  	39
	 ARTICLE 20
	  	 COVENANT OF QUIET ENJOYMENT
	  	42
	 ARTICLE 21
	  	 SECURITY DEPOSIT; LETTER OF CREDIT
	  	42
	 ARTICLE 22
	  	 TELECOMMUNICATIONS EQUIPMENT
	  	45
	 ARTICLE 23
	  	 SIGNS
	  	46
	 ARTICLE 24
	  	 COMPLIANCE WITH LAW
	  	48
	 ARTICLE 25
	  	 LATE CHARGES
	  	49
	 ARTICLE 26
	  	 LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT
	  	49
	 ARTICLE 27
	  	 ENTRY BY LANDLORD
	  	49
	 ARTICLE 28
	  	 TENANT PARKING
	  	50
	 ARTICLE 29
	  	 MISCELLANEOUS PROVISIONS
	  	51

  

 (ii) 

 INDEX 
  

			
	 	  	Page(s)

	 Abatement Event
	  	12
	 Accountant
	  	20
	 Accountant’s Statement
	  	20
	 Additional Premises Access Date
	  	6
	 Additional Premises Commencement Date
	  	6
	 Additional Premises Term
	  	6
	 Additional Rent
	  	13
	 Advocate Arbitrators
	  	11
	 Alterations
	  	25
	 Applicable Laws
	  	48
	 Award
	  	11
	 Bank Prime Loan
	  	49
	 Base Building
	  	26
	 Base Rent
	  	12
	 Base Year
	  	13
	 BOMA
	  	6
	 bona-fide third-party offer
	  	7
	 Broker
	  	55
	 BS/BS Exception
	  	24
	 Building Common Areas
	  	6
	 Building Common Areas
	  	6
	 Building Hours
	  	22
	 Building Monument Sign
	  	46
	 Building Structure
	  	28
	 Building Systems
	  	28
	 CC&Rs
	  	21
	 Comparable Area
	  	10
	 Comparable Buildings
	  	10
	 Comparable Deals
	  	9
	 Comparable Term
	  	10
	 Control
	  	37
	 Cosmetic Alterations
	  	25
	 Damage Termination Date
	  	31
	 Damage Termination Notice
	  	31
	 Direct Expenses
	  	13
	 Eligibility Period
	  	12
	 Environmental Laws
	  	57
	 Estimate
	  	19
	 Estimate Statement
	  	19
	 Estimated Excess
	  	19
	 Excess
	  	18
	 Exercise Notice
	  	10
	 Expense Year
	  	13
	 First Refusal Notice
	  	7
	 First Refusal Space
	  	7
	 First Refusal Amendment
	  	8
	 First Refusal Space Lease
	  	8
	 Force Majuere
	  	53
	 Hazardous Material(s)
	  	57

  

 (iii) 

			
	 Holdover Notice
	  	37
	 Holidays
	  	32
	 HVAC
	  	22
	 Initial L-C Amount
	  	42
	 Landlord Parties
	  	28
	 Landlord Repair Notice
	  	30
	 Landlord Response Date
	  	10
	 Landlord Response Notice
	  	10
	 Landlord’s Option Rent Calculation
	  	10
	 L-C
	  	 
	 L-C Amount
	  	42
	 L-C Security Deposit
	  	45
	 Lease
	  	1
	 Lease Commencement Date
	  	8
	 Lease Expiration Date
	  	8
	 Lease Term
	  	8
	 Lease Year
	  	8
	 Lines
	  	56
	 Mail
	  	53
	 Market Capitalization
	  	43
	 Market Rent
	  	9
	 Net Worth
	  	53
	 Neutral Arbitrator
	  	11
	 Nondisturbance Agreement
	  	39
	 Notices
	  	53
	 Objectionable Name
	  	47
	 Operating Expenses
	  	13
	 Option Rent
	  	9
	 Option Term
	  	9
	 Option Term TI Allowance
	  	10
	 Original Improvements
	  	29
	 Original Tenant
	  	7
	 Other Improvements
	  	58
	 Outside Agreement Date 
	  	10
	 Permitted Assignee
	  	7
	 Permitted Holdover Term
	  	38
	 Permitted Transferee
	  	37
	 Premises
	  	5
	 Project Common Areas
	  	6
	 Project Common Areas
	  	 
	 Proposition 13
	  	17
	 Provider
	  	58
	 Reestablishment Notice
	  	43
	 Renovations
	  	56
	 Rent Concessions
	  	9
	 Rent
	  	13
	 Required L-C Amount
	  	43
	 Required Thresholds
	  	43
	 Security Areas
	  	50
	 Security Deposit
	  	42
	 Sign Specifications
	  	47
	 Statement
	  	19
	 Subject Space
	  	33

  

 (iv) 

			
	 Subsequent Year Electrical Costs
	  	16
	 Summary
	  	1
	 Tax Expenses
	  	13
	 Telecommunications Equipment
	  	45
	 Tenant
	  	1
	 Tenant Work Letter
	  	5
	 Tenant’s Option Rent Calculation
	  	10
	 Tenant’s Share
	  	18
	 Tenant’s Signage
	  	46
	 Third Party Lease
	  	8
	 Transfer
	  	36
	 Transfer Notice
	  	33
	 Transfer Premium
	  	33
	 Transferee
	  	33
	 Transfers
	  	33
	 Unusable Area
	  	12
	 Working Capital
	  	43

  

 (v) 

 SHORT FORM OF MEMORANDUM OF LEASE 
  
 RECORDING REQUESTED BY 
 AND WHEN RECORDED RETURN TO: 
  
 Memec, LLC 
 9980 Huennekens Street 
 San Diego, California 92121 
 Attention: George Evans, Director of Facilities and Purchasing 
  

  
 SHORT FORM OF MEMORANDUM OF LEASE 
  
 THIS SHORT
FORM OF MEMORANDUM OF LEASE is entered into as of the 23rd day of September, 2002, by and between KILROY REALTY,
L.P., a Delaware limited partnership (“Landlord”), and MEMEC, LLC, a Delaware limited liability company (“Tenant”), who agree as follows. 
  
 1. Terms and Premises. Landlord leases to Tenant, and Tenant leases from Landlord, certain premises (the
“Premises”) to be located on a portion of the real property (the “Project”) legally described on Schedule 1 attached hereto and incorporated herein by this reference (including parking areas more
particularly identified in the Lease), for the term and in accordance with the provisions of that certain Lease by and between Landlord and Tenant, dated as of the date hereof (the “Lease”). The provisions of the Lease are hereby
incorporated herein. 
  
 2. Certain Express Lease
Terms. As more particularly set forth in the referenced sections of the Lease, Tenant enjoys the following rights pursuant to the terms and conditions of the Lease: (i) a Right of First Refusal with regard to the first (1st) floor of the adjacent building within the Project commonly known as “Building 5”, as more particularly set forth in
Section 1.4 of the Lease); (ii) an initial Lease Term of ten (10) years, which initial Lease Term is anticipated to commence on March 1, 2003, as more particularly set forth in Section 2.1 of the Lease, and (iii) Option Rights with
regard to two (2) options to extend the Lease Term for the entire Premises each by a period of five (5) years, as more particularly set forth in Section 2.2 of the Lease. 
  
 3. Provisions Binding on Parties. The provisions of the Lease to be performed by Landlord or Tenant, whether
affirmative or negative in nature, are intended to and shall bind or benefit the respective parties hereto and their assigns or successors, as applicable, at all times. 
  
 3. Purpose of Short Form of Memorandum of Lease. This Short Form of Memorandum of Lease is prepared solely for
purposes of recordation, and in no way modifies the provisions of the Lease. 
  

					
	 LANDLORD
	 	 KILROY REALTY, L.P.,
 a Delaware limited partnership

			
	 	 	 By:
	 	 /s/ JEFFREY C. HAWKEN

	 	 	 Name:
	 	 Jeffrey C. Hawken

	 	 	 Title:
	 	 Executive Vice President, Chief Operating Officer

							
	 TENANT
	 	 	 	 MEMEC, LLC,
 a Delaware limited liability company

				
	 	 	 	 	 By:
	 	 /s/ DOUG LINDROTH

	 	 	 	 	 Name:
	 	 Doug Lindroth

	 	 	 	 	 Title:
	 	 CFO

  

 - 2 - 

 STATE OF
CALIFORNIA              ) 
                                        
                   ) ss. 
 COUNTY OF Los Angeles              ) 
  
 On September 24, 2002  , before me, James K. Doyle  , a Notary Public in and for said state, personally
appeared Jeffrey C. Hawken personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument, the
person, or the entity upon behalf of which the person acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  

	
	 /s/    JAMES K. DOYLE

	 Notary Public in and for said State

  
 (SEAL) 
  
 STATE OF
CALIFORNIA              ) 
                                        
                   ) ss. 
 COUNTY OF San Diego                 ) 
  
 On September 23, 2002  , before me, Ben Romano  ,a Notary Public in and for said state, personally appeared Doug
Lindroth  , personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument, the person,
or the entity upon behalf of which the person acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  

	
	 /s/    BEN ROMANO

	 Notary Public in and for said State

  
 (SEAL) 
  

 - 3 - 

 SCHEDULE 1 
  
 LEGAL DESCRIPTION 
  
 [ATTACHED] 
  
 SCHEDULE 1 
  
 - 1 - 

 SCHEDULE 1 
  
 LEGAL DESCRIPTION 
  
 PARCEL 4 OF PARCEL MAP 18350 RECORDED SEPTEMBER 30, 1999, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, AS FILE NO. 1999-664638. 

 GUARANTY OF LEASE 
  
 THIS GUARANTY OF LEASE (this “Guaranty”) is made as of September 23, 2002, by MEMEC GROUP HOLDINGS LIMITED,
a company incorporated and registered in England and Wales (the “Guarantor”), whose address is set forth in Paragraph 10 hereof, in favor of KILROY REALTY, L.P., a Delaware limited partnership (“Landlord”), having
an office at 3811 Valley Centre Drive, Suite 300, San Diego, California 92130. 
  
 WHEREAS, Landlord and MEMEC, LLC, a Delaware limited liability company (“Tenant”) desire to enter into that certain Office Lease dated as of September 23, 2002 (the “Lease”)
concerning the premises consisting of all of (initially floors 1, 3, 4, and 5, and following the “Additional Premises Commencement Date” (as that term is defined in the Lease and anticipated to be March 1, 2005) also including floor 2)
that certain five (5)-story building (the “Building”) located at 3721 Valley Centre Drive, San Diego, California 92130, which Building contains 114,782 rentable square feet of space, and which Building is commonly referred to as
“Building 4” within that certain office project known as “Kilroy Centre Del Mar,” as further set forth in Section 1.1.2 of the Lease. ; 
  
 WHEREAS, Guarantor has a financial interest in the Tenant; and 
  
 WHEREAS, Landlord would not execute the Lease if Guarantor did not execute and deliver to Landlord this Guaranty.

  
 NOW THEREFORE, for and in consideration of the execution of
the foregoing Lease by Landlord and as a material inducement to Landlord to execute said Lease, Guarantor hereby absolutely, presently, continually, unconditionally and irrevocably guaranty the prompt payment by Tenant of all rentals and all other
sums payable by Tenant under said Lease and the faithful and prompt performance by Tenant of each and every one of the terms, conditions and covenants of said Lease to be kept and performed by Tenant, and further agree as follows: 
  
 1. It is specifically agreed and understood that the terms, covenants and
conditions of the Lease may be altered, affected, modified, amended, compromised, released or otherwise changed by agreement between Landlord and Tenant, or by course of conduct and Guarantor does guaranty and promise to perform all of the
obligations of Tenant under the Lease as so altered, affected, modified, amended, compromised, released or changed and the Lease may be assigned by or with the consent of Landlord or any assignee of Landlord without consent or notice to Guarantor
and that this Guaranty shall thereupon and thereafter guaranty the performance of said Lease as so changed, modified, amended, compromised, released, altered or assigned. 
  
 2. This Guaranty shall not be released, modified or affected by failure or delay on the part of Landlord to enforce any of
the rights or remedies of Landlord under the Lease, whether pursuant to the terms thereof or at law or in equity, or by any release of any person liable under the terms of the Lease (including, without limitation, Tenant) or any other Guarantor,
including without limitation, any other Guarantor named herein, from any liability with respect to Guarantor’s obligations hereunder. 
  
 3. Guarantor’s liability under this Guaranty shall continue until all rents due under the Lease have been paid in full in cash and until all other
obligations to Landlord have been satisfied, and shall not be reduced by virtue of any payment by Tenant of any amount due under the Lease. If all or any portion of Tenant’s obligations under the Lease is paid or performed by Tenant, the
obligations of Guarantor hereunder shall continue and remain in full force and effect in the event that all or any part of such payment(s) or performance(s) is avoided or recovered directly or indirectly from Landlord as a preference, fraudulent
transfer or otherwise. 

 4. Guarantor warrants and represents to Landlord that Guarantor now has and will continue to have full
and complete access to any and all information concerning the Lease, the value of the assets owned or to be acquired by Tenant, Tenant’s financial status and its ability to pay and perform the obligations owed to Landlord under the Lease.
Guarantor further warrants and represents that Guarantor has reviewed and approved copies of the Lease and is fully informed of the remedies Landlord may pursue, with or without notice to Tenant, in the event of default under the Lease. So long as
Guarantor’s obligations hereunder remains unsatisfied or owing to Landlord, Guarantor shall keep fully informed as to all aspects of Tenant’s financial condition and the performance of said obligations. 
  
 5. Guarantor hereby covenants and agrees with Landlord that if a default
shall at any time occur in the payment of any sums due under the Lease by Tenant or in the performance of any other obligation of Tenant under the Lease, Guarantor shall and will forthwith upon demand pay such sums, and any arrears thereof, to
Landlord in legal currency of the United States of America for payment of public and private debts, and take all other actions necessary to cure such default and perform such obligations of Tenant. 
  
 6. The liability of Guarantor under this Guaranty is a guaranty of payment
and performance and not of collectibility, and is not conditioned or contingent upon the genuineness, validity, regularity or enforceability of the Lease or the pursuit by Landlord of any remedies which it now has or may hereafter have with respect
thereto, at law, in equity or otherwise; provided, however, the liability of Guarantor shall not exceed the liability of Tenant to Landlord as if Guarantor were the tenant under the lease. 
  
 7. To the extent permitted by law, Guarantor hereby waives and agrees not to
assert or take advantage of: (i) all notices to Guarantor, to Tenant, or to any other person, including, but not limited to, notices of the acceptance of this Guaranty or the creation, renewal, extension, assignment, modification or accrual of any
of the obligations owed to Landlord under the Lease and, except to the extent set forth in Paragraph 9 hereof, enforcement of any right or remedy with respect thereto, and notice of any other matters relating thereto; (ii) notice of acceptance of
this Guaranty; (iii) demand of payment, presentation and protest; (iv) any right to require Landlord to apply to any default any security deposit or other security it may hold under the Lease; (v) any right or defense that may arise by reason of the
incapability, lack or authority, death or disability of Tenant or any other person; and (vi) all principles or provisions of law which conflict with the terms of this Guaranty. Moreover, Guarantor agrees that Guarantor’s obligations shall not
be affected by any circumstances which constitute a legal or equitable discharge of a guarantor or surety. 
  
 8. Guarantor agrees that Landlord may enforce this Guaranty without the necessity of proceeding against Tenant or any other guarantor. Guarantor hereby
waives the right to require Landlord to proceed against Tenant, to proceed against any other guarantor, to exercise any right or remedy under the Lease or to pursue any other remedy or to enforce any other right. 
  
 9. (a) Guarantor agrees that nothing contained herein shall prevent Landlord
from suing on the Lease or from exercising any rights available to it thereunder and that the exercise of any of the aforesaid rights shall not constitute a legal or equitable discharge of Guarantor. Without limiting the generality of the foregoing,
Guarantor hereby expressly waives any and all benefits under California Civil Code §§2810, 2819, 2845, 2849 and 2850. 
  
 (b) Guarantor agrees that Guarantor shall have no right of subrogation against Tenant or any right of contribution against any other Guarantor hereunder
unless and until all amounts due under the Lease have been paid in full and all other obligations under the Lease have been satisfied. Guarantor further agrees that, to the extent the waiver of Guarantor’s rights of subrogation and contribution
as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation Guarantor may have against Tenant shall be junior and subordinate to any rights Landlord may have against Tenant.

  

 - 2 - 

 (c) The obligations of Guarantor under this Guaranty shall not be altered, limited or affected by any
case, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of Tenant or any defense which Tenant may have by reason of order, decree or decision of any court or administrative body
resulting from any such case. Landlord shall have the sole right to accept or reject any plan on behalf of Guarantor proposed in such case and to take any other action which Guarantor would be entitled to take, including, without limitation, the
decision to file or not file a claim. Guarantor acknowledges and agrees that any payment which accrues with respect to Tenant’s obligations under the Lease (including, without limitation, the payment of rent) after the commencement of any such
proceeding (or, if any such payment ceases to accrue by operation of law by reason of the commencement of such proceeding, such payment as would have accrued if said proceedings had not been commenced) shall be included in Guarantor’s
obligations hereunder because it is the intention of the parties that said obligations should be determined without regard to any rule or law or order which may relieve Tenant of any of its obligations under the Lease. Guarantor hereby permits any
trustee in bankruptcy, receiver, debtor-in-possession, assignee for the benefit of creditors or similar person to pay Landlord, or allow the claim of Landlord in respect of, any such payment accruing after the date on which such proceeding is
commenced. Guarantor hereby assigns to Landlord Guarantor’s right to receive any payments from any trustee in bankruptcy, receiver, debtor-in-possession, assignee for the benefit of creditors, or similar person by way of dividend, adequate
protection payment or otherwise. 
  
 10. Any notice, statement,
demand, consent, approval or other communication required or permitted to be given, rendered or made by either party to the other, pursuant to this Guaranty or pursuant to any applicable law or requirement of public authority, shall be in writing
(whether or not so stated elsewhere in this Guaranty) and shall be deemed to have been properly given, rendered or made only if hand-delivered or sent by first-class mail, postage pre-paid, addressed to the other party at its respective address set
forth below, and shall be deemed to have been given, rendered or made on the day it is hand-delivered or one day after it is mailed, unless it is mailed outside of the county in which the Building is located, in which case it shall be deemed to have
been given, rendered or made on the third business day after the day it is mailed. By giving notice as provided above, either party may designate a different address for notices, statements, demands, consents, approvals or other communications
intended for it. 
  

			
	 To Guarantor:
	  	 Memec Group Holdings Limited

	 	  	 17 Thame Park Road

	 	  	 Thame, Oxon

	 	  	 United Kingdom, 0X93UQ

		
	 To Landlord:
	  	 Kilroy Realty Corporation

	 	  	 12200 W. Olympic Boulevard,

	 	  	 Suite 200

	 	  	 Los Angeles, California 90064

	 	  	 Attention: Legal Department

		
	 	  	 with copies to:

		
	 	  	 Kilroy Realty Corporation

	 	  	 3811 Valley Centre Drive,

	 	  	 Suite 300

	 	  	 San Diego, California 92130

	 	  	 Attention: Mr. Roger Simsiman

  

 - 3 - 

			
	 	  	 and

		
	 	  	 Allen Matkins Leck Gamble & Mallory

	 	  	 1901 Avenue of the Stars,

	 	  	 Suite 1800

	 	  	 Los Angeles, California 90067

	 	  	 Attention: Anton N. Natsis, Esq.

  
 11. Guarantor
represents and warrants to Landlord as follows: 
  
 (a) No
consent of any other person, including, without limitation, any creditors of Guarantor, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority
is required by Guarantor in connection with this Guaranty or the execution, delivery, performance, validity or enforceability of this Guaranty and all obligations required hereunder. This Guaranty has been duly executed and delivered by Guarantor,
and constitutes the legally valid and binding obligation of Guarantor enforceable against Guarantor in accordance with its terms. 
  
 (b) The execution, delivery and performance of this Guaranty will not violate any provision of any existing law or regulation binding on Guarantor, or any
order, judgment, award or decree of any court, arbitrator or governmental authority binding on Guarantor, or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which Guarantor is a party or by which
Guarantor or any of Guarantor’s assets may be bound, and will not result in, or require, the creation or imposition of any lien on any of Guarantor’s property, assets or revenues pursuant to the provisions of any such mortgage, indenture,
lease, contract or other agreement, instrument or undertaking. 
  
 12. The obligations of Tenant under the Lease to execute and deliver estoppel statements, as therein provided, shall be deemed to also require the Guarantor hereunder to do and provide the same relative to Guarantor. 
  
 13. This Guaranty shall be binding upon Guarantor, Guarantor’s heirs,
representatives, administrators, executors, successors and assigns and shall inure to the benefit of and shall be enforceable by Landlord, its successors, endorsees and assigns. Any married person executing this Guaranty agrees that recourse may be
had against community assets and against his separate property for the satisfaction of all obligations herein guaranteed. As used herein, the singular shall include the plural, and the masculine shall include the feminine and neuter and vice versa,
if the context so requires. 
  
 14. The term “Landlord”
whenever used herein refers to and means the Landlord specifically named in the Lease and also any assignee of said Landlord, whether by outright assignment or by assignment for security, and also any successor to the interest of said Landlord or of
any assignee in the Lease or any part thereof, whether by assignment or otherwise. So long as the Landlords interest in or to demised premises (as that term is used in the Lease) or the rents, issues and profits therefrom, or in, to or under the
Lease, are subject to any mortgage or deed of trust or assignment for security, no acquisition by Guarantor of the Landlord’s interest in demised premises or under the Lease shall affect the continuing obligations of Guarantor under this
Guaranty, which obligations shall continue in full force and effect for the benefit of the mortgagee, beneficiary, trustee or assignee under such mortgage, deed of trust or assignment, of any purchaser at sale by judicial foreclosure or under
private power of sale, and of the successors and assigns of any such mortgagee, beneficiary, trustee, assignee or purchaser. 
  
 15. The term “Tenant” whenever used herein refers to and means the Tenant in the Lease specifically named and also any assignee or sublessee of
said Lease and also any successor to the interests of said Tenant, assignee or sublessee of such Lease or any part thereof, whether by assignment, sublease or otherwise. 
  

 - 4 - 

 16. In the event of any dispute or litigation regarding the enforcement or validity of this Guaranty,
Guarantor (or the prevailing party if such litigation is prosecuted to judgment) shall be obligated to pay all charges, costs and expenses (including, without limitation, reasonable attorneys’ fees) incurred by Landlord (or the non-prevailing
party if such litigation is prosecuted to judgment). 
  
 17. This
Guaranty shall be governed by and construed in accordance with the laws of the state in which the Building is located, and in a case involving diversity of citizenship, shall be litigated in and subject to the jurisdiction of the courts of the State
in which the Building is located. 
  
 18. Every provision of this
Guaranty is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever by a court of competent jurisdiction, such illegality or invalidity shall not affect the balance of the
terms and provisions hereof, which terms and provisions shall remain binding and enforceable. 
  
 19. This Guaranty may be executed in any number of counterparts each of which shall be deemed an original and all of which shall constitute one and the same Guaranty with the same effect as if all parties had signed
the same signature page. Any signature page of this Guaranty may be detached from any counterpart of this Guaranty and re-attached to any other counterpart of this Guaranty identical in form hereto but having attached to it one or more additional
signature pages. 
  
 20. No failure or delay on the part of
Landlord to exercise any power, right or privilege under this Guaranty shall impair any such power, right or privilege, or be construed to be a waiver of any default or an acquiescence therein, nor shall any single or partial exercise of such power,
right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 
  
 21. This Guaranty shall constitute the entire agreement between Guarantor and the Landlord with respect to the subject matter hereof. No provision of this
Guaranty or right of Landlord hereunder may be waived nor may any Guarantor be released from any obligation hereunder except by a writing duly executed by an authorized officer, director or trustee of Landlord. 
  
 22. The liability of Guarantor and all rights, powers and remedies of
Landlord hereunder and under any other agreement now or at any time hereafter in force between Landlord and Guarantor relating to the Lease shall be cumulative and not alternative and such rights, powers and remedies shall be in addition to all
rights, powers and remedies given to Landlord by law. 
  

 - 5 - 

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

					
	 MEMEC GROUP HOLDINGS LIMITED,
 a company incorporated and registered
 in England and Wales

		
	 By:
	 	 /s/    DAVID ASHWORTH

			
	 	 	 Its:
	 	 CEO

		
	 By:
	 	 /s/    JAMES WALL

	 	 	 Its:
	 	 CFO

  

 - 6 - 

 [LETTERHEAD OF KILROY REALTY CORPORATION] 
  
  
 KILROY CENTRE DEL MAR 
 NOTICE OF LEASE TERM DATES AND TENANT’S PERCENTAGE 
  
 April 15, 2003 
  
 Mr. George Evans 
 MEMC, LLC 
 9980 Huennekens Street 
 San Diego, CA 92121 
  

	RE:	Kilroy Realty, L.P. (“Landlord”) 

 Memec, LLC, a
Delaware limited liability partnership (“Tenant”) 
 3721 Valley Centre Drive, San Diego, CA, Floors 1, 3, 4 and 5 (“Initial
Premises”) 
 3721 Valley Centre Drive, San Diego, CA, Floor 2 (“Additional Premises”) 
 Office Lease, dated September 23, 2002 (“Lease”)  
 LETTER OF COMMENCEMENT 
  
 Dear Mr.
Evans: 
  
 Pursuant to the provisions of the above-referenced lease, this letter
is to confirm and agree upon the following: 
  

	1.	Landlord and Tenant entered into a lease dated September 23, 2002 (the “Lease”), in which Landlord leased to Tenant and Tenant leased from Landlord the Initial and
Additional Premises described in Section 2 of the Summary of Basic Lease Information. 

  

	2.	Landlord and Tenant confirm the commencement and expiration of the Term, and the commencement of Rent and Tenant’s Share of Direct Expenses with respect to the Initial
Premises, as follows: 

  

	 	2.1	March 1, 2003 is the Commencement Date of the Term of the Lease for the Initial Premises. 

  

	 	2.2	February 28, 2013 is the expiration date of the Term of the Lease for the Initial Premises, subject to two (2) five (5) year options to extend the Term as set forth in Article 2 of
the Lease. 

  

	 	2.3	March 1, 2003 is hereby agreed to be the commencement date for Rent for the Initial Premises under the under the Lease, in the amount of *** per month, and for Tenant’s payment
of Tenant’s Share of Direct Expenses. 

 *** Material has been omitted
pursuant to a request for confidential treatment. 

 Mr. George Evans 
 April 15, 2003 
 Page 2 
  

	 	2.4	If the Lease Commencement Date is other than the first day of the month, the first billing will contain a pro rata adjustment. Each billing thereafter, with the exception of the
final billing, shall be for the full amount of the monthly installment as provided for in the Lease. 

  

	 	2.5	Your rent checks should be made payable to Kilroy Realty, L.P., at 12200 W. Olympic Boulevard, Suite 200, Los Angeles, CA 90064. 

  

	 	2.6	Tenant’s Share of Direct Expenses as adjusted, based on the rentable square feet within the Premises, is 79.95%. 

  

	3.	Tenant acknowledges and confirms that: 

  

	 	3.1	Substantial Completion (as that term is defined in paragraph 5.1 of Exhibit ”B” to the Lease (i.e. “Work Letter Agreement)) of the Initial Premises improvements and
space required to be furnished by Landlord under the Lease was delayed as a result of Tenant’s request for over standard improvements, including but not limited to lobby improvements, ground floor locker rooms, and a “feature stair”,
resulting in changes to the Base, Shell and Core, and such delay shall be deemed a Tenant Delay pursuant to paragraph 5.2 of Exhibit ”B” to the Lease. 

  

	 	3.2	Absent the Tenant Delay described in paragraph 3.1 above Substantial Completion would have occurred on March 1, 2003. 

  

	 	3.3	The Lease has not been modified or altered, except as hereinabove described. 

  

	 	3.4	The Lease is in full force and effect. 

 Mr. George Evans 
 April 15, 2003 
 Page 3 
  
 If the provisions of this letter correctly set forth our understanding, would you please so acknowledge by signing where indicated below on
the enclosed copy of this letter and returning the same to Landlord. 
  
 Very
truly yours, 
  

					
	KILROY REALTY, L.P.,
	 A Delaware Limited Partnership

		
	 By:
	 	 KILROY REALTY CORPORATION,
 A Maryland Corporation,
 General Partner

			
	 	 	 By:
	 	 /s/    STEVE SCOTT

			
	 	 	 Title:
	 	 Steve Scott, Senior Vice President

			
	 	 	 By:
	 	 /s/    JEFF HAWKEN

			
	 	 	 Title
	 	 Jeff Hawken, Chief Operating Officer

	 	 	 	 	“LANDLORD”

  
 CONFIRMED AND
APPROVED THIS     1st             DAY OF MAY, 2003 
  

					
		
	 	 	 MEMEC, LLC
 A Delaware Limited Liability Company

			
	 	 	 By:
	 	 /s/    DOUG LINDROTH

			
	 	 	 Title:
	 	 CFO

			
	 	 	 By:
	 	 /s/    [ILLEGIBLE]

			
	 	 	 Title
	 	 Treasurer

	 	 	 	 	“TENANT”Lease dated March 20, 1997

 EXHIBIT 10.4 
  
 Confidential Materials omitted and filed separately with the Securities and Exchange Commission. Asterisks denote such
omissions. 
  
 LEASE 
  
  
  
 ADI MEMEC PARTNERS, L.P., 
 a
California limited partnership 
  
 Landlord 

 
  
  
 MEMEC, INC. 
 a California corporation

  
 Tenant 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page

	Article I	  	 TERM OF LEASE
	  	1
			
	 1.1
	  	 Initial Term
	  	1
			
	 1.2
	  	 Option to Extend
	  	2
			
	 1.3
	  	 Term
	  	2
			
	Article II	  	 CONSTRUCTION OF THE IMPROVEMENTS
	  	2
			
	 2.1
	  	 The Improvements
	  	2
			
	 2.2
	  	 Preparation of Plans and Specifications
	  	2
			
	 2.3
	  	 Substantial Completion of the Improvements
	  	5
				
	 	  	(a)	  	 “Substantial Completion”
	  	5
				
	 	  	(b)	  	 “Tenant Change Order”
	  	5
				
	 	  	(c)	  	 “Tenant-Caused Delay”
	  	5
				
	 	  	(d)	  	 Punchlist Preparation
	  	6
				
	 	  	(e)	  	 Base Rent Payment
	  	6
			
	 2.4
	  	 Purchase of Land; Delay in Substantial Completion
	  	6
			
	 2.5
	  	 Building Permit for the Improvements
	  	7
			
	 2.6
	  	 Construction Warranties
	  	8
			
	 2.7
	  	 Condition of Demised Premises; Limited Warranty
	  	8
			
	 2.8
	  	 Tenant Improvements Allowance; Tenant Responsibility
	  	8
			
	 2.9
	  	Responsibility for Excess Costs and Excess Tenant Improvements Cost:
Tenant Improvements Costs Savings	  	9
			
	 2.10
	  	 Contractor
	  	11
			
	 2.11
	  	 Tenant’s Entry Into the Building Prior to Substantial Completion
	  	11
			
	Article III	  	 RENT
	  	12
			
	 3.1
	  	 Base Rent
	  	12
			
	 3.2
	  	 Base Rent During Option Term
	  	12
			
	 3.3
	  	 Additional Obligations; Additional Rent
	  	14
			
	 3.4
	  	 Delinquent Rental Payments
	  	15
			
	Article IV	  	 USE OF DEMISED PREMISES
	  	15
			
	 4.1
	  	 Permitted Use
	  	15
			
	 4.2
	  	 Preservation of Demised Premises
	  	15
			
	 4.3
	  	 Hazardous Substances
	  	16
			
	Article V	  	 PAYMENT OF TAXES, ASSESSMENTS, ETC.
	  	18
			
	 5.1
	  	 Payment of Impositions
	  	18

  
  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 5.2
	  	 Tenant’s Right to Contest Impositions
	  	19
			
	 5.3
	  	 Levies and Other Taxes
	  	20
			
	 5.4
	  	 Evidence of Payment
	  	20
			
	 5.5
	  	 Escrow for Taxes and Assessments
	  	20
			
	 5.6
	  	 Landlord’s Right to Contest Impositions
	  	20
			
	Article VI	  	 INSURANCE
	  	21
			
	 6.1
	  	 Casualty Insurance
	  	21
			
	 6.2
	  	 Public Liability Insurance
	  	21
			
	 6.3
	  	 Other Insurance
	  	22
			
	 6.4
	  	 Additional Insurance Provisions
	  	22
			
	 6.5
	  	 Waiver of Subrogation
	  	23
			
	 6.6
	  	 Tenant’s Indemnification of Landlord
	  	23
			
	 6.7
	  	 Unearned Premiums
	  	23
			
	 6.8
	  	 Blanket Insurance Coverage
	  	23
			
	 6.9
	  	 Landlord’s Liability Insurance Coverage
	  	23
			
	Article VII	  	 UTILITIES
	  	24
			
	 7.1
	  	 Payment of Utilities
	  	24
			
	 7.2
	  	 Additional Charges
	  	24
			
	 7.3
	  	 Landlord’s Responsibility for Utility Hook-Up Charges and Fees
	  	24
			
	Article VIII	  	 REPAIRS AND MAINTENANCE OF DEMISED PREMISES
	  	24
			
	 8.1
	  	 Tenant’s Responsibilities
	  	24
			
	 8.2
	  	 Landlord’s Responsibilities
	  	25
			
	 8.3
	  	 Sharing of Expenses of Capital Items
	  	25
			
	 8.4
	  	 Tenant’s Waiver of Claims Against Landlord
	  	26
			
	 8.5
	  	 Prohibition Against Waste
	  	26
			
	Article IX	  	 COMPLIANCE WITH APPLICABLE LAWS AND RESTRICTIONS
	  	26
			
	 9.1
	  	 Compliance with Applicable Laws and Restrictions
	  	26
			
	 9.2
	  	 Tenant’s Obligations
	  	27
			
	 9.3
	  	 Tenant’s Right to Contest Laws and Ordinances
	  	27
			
	Article X	  	 MECHANIC’S LIENS AND OTHER LIENS
	  	27
			
	 10.1
	  	 Mechanic’s Liens
	  	27
			
	 10.2
	  	 Landlord’s Indemnification
	  	28

  
  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 10.3
	  	 Removal of Liens
	  	28
			
	 10.4
	  	 Equipment and Trade Fixtures
	  	29
			
	Article XI	  	 LANDLORD’S PERFORMANCE OF TENANT’S OBLIGATIONS
	  	29
			
	Article XII	  	 DEFAULTS OF TENANT
	  	29
			
	 12.1
	  	 Events of Default
	  	29
			
	 12.2
	  	 Landlord’s Remedies
	  	30
			
	 12.3
	  	 New Lease Following Termination
	  	31
			
	 12.4
	  	 Cumulative Rights; No Waiver
	  	31
			
	 12.5
	  	 Surrender of Demised Premises
	  	31
			
	 12.6
	  	 Interest on Unpaid Amounts
	  	31
			
	Article XIII	  	 DESTRUCTION AND RESTORATION
	  	32
			
	 13.1
	  	 Destruction and Restoration
	  	32
			
	 13.2
	  	 Application of Insurance Proceeds
	  	33
			
	 13.3
	  	 Continuance of Tenant’s Obligations
	  	33
			
	 13.4
	  	 Availability of Insurance Proceeds
	  	33
			
	 13.5
	  	 Completion of Restoration
	  	34
			
	 13.6
	  	 Termination of Lease
	  	34
			
	Article XIV	  	 CONDEMNATION
	  	35
			
	 14.1
	  	 Condemnation of Entire Demised Premises
	  	35
			
	 14.2
	  	 Partial Condemnation/Termination of Lease
	  	35
			
	 14.3
	  	 Partial Condemnation/Continuation of Lease
	  	36
			
	 14.4
	  	 Continuance of Obligations
	  	36
			
	 14.5
	  	 Adjustment of Rent
	  	36
			
	Article XV	  	 ASSIGNMENT, SUBLETTING, ETC.
	  	36
			
	 15.1
	  	 Restriction on Transfer
	  	36
			
	 15.2
	  	 Transfer to Affiliates; Sale or Merger
	  	37
			
	 15.3
	  	 Restriction Against Further Assignment
	  	38
			
	 15.4
	  	 Tenant’s Failure to Comply
	  	38
			
	Article XVI	  	SUBORDINATION, NONDISTURBANCE, NOTICE TO MORTGAGEE AND ATTORNMENT	  	38
			
	 16.1
	  	 Subordination by Tenant
	  	38
			
	 16.2
	  	 Landlord’s Default
	  	39
			
	 16.3
	  	 Attornment
	  	39

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	Article XVII	  	 SIGNS
	  	39
			
	Article XVIII	  	 FINANCIAL STATEMENTS OF TENANT
	  	39
			
	Article XIX	  	 CHANGES AND ALTERATIONS
	  	40
			
	 19.1
	  	 Permits
	  	40
			
	 19.2
	  	 Landlord Approval; Compliance with Plans and Specifications
	  	40
			
	 19.3
	  	 Value Maintained
	  	40
			
	 19.4
	  	 Compliance with Laws
	  	40
			
	 19.5
	  	 Property of Landlord
	  	41
			
	 19.6
	  	 Location of Improvements
	  	41
			
	 19.7
	  	 Removal of Improvements
	  	41
			
	 19.8
	  	 Notice to Landlord
	  	41
			
	 19.9
	  	 Reasonable Consent
	  	42
			
	Article XX	  	 MISCELLANEOUS PROVISIONS
	  	42
			
	 20.1
	  	 Entry by Landlord
	  	42
			
	 20.2
	  	 Exhibition of Demised Premises
	  	42
			
	 20.3
	  	 Indemnification
	  	42
			
	 20.4
	  	 Notices
	  	43
			
	 20.5
	  	 Quiet Enjoyment
	  	44
			
	 20.6
	  	 Landlord’s Continuing Obligations
	  	44
			
	 20.7
	  	 Estoppel
	  	44
			
	 20.8
	  	 Delivery of Corporate Documents
	  	45
			
	 20.9
	  	 Memorandum of Lease
	  	45
			
	 20.10
	  	 Severability
	  	45
			
	 20.11
	  	 Successors and Assigns
	  	46
			
	 20.12
	  	 Captions
	  	46
			
	 20.13
	  	 Relationship of Parties
	  	46
			
	 20.14
	  	 Entire Agreement
	  	46
			
	 20.15
	  	 No Merger
	  	46
			
	 20.16
	  	 Possession and Use
	  	46
			
	 20.17
	  	 Surrender of Demised Premises
	  	46
			
	 20.18
	  	 Holding Over
	  	47
			
	 20.19
	  	 Survival
	  	47

  
  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	Page

			
	 20.20
	  	 Broker’s Commission
	  	47
			
	 20.21
	  	 Applicable Law
	  	47
			
	 20.22
	  	 Counterparts
	  	47
			
	 20.23
	  	 Attorneys’ Fees
	  	47
			
	Article XXI	  	 EXPANSION OF THE DEMISED PREMISES
	  	48
			
	 21.1
	  	 Expansion By Landlord
	  	48
				
	 	  	(a)	  	 Tenant’s Notice to Proceed
	  	48
				
	 	  	(b)	  	 Tenant’s Financial Condition
	  	48
				
	 	  	(c)	  	 Expiration of Expansion By Landlord Option; Landlord’s Right to Develop
	  	48
				
	 	  	(d)	  	 Development of Plans and Specifications
	  	48
				
	 	  	(e)	  	 Substantial Completion of Expansion Space
	  	48
				
	 	  	(f)	  	 Term of Lease
	  	48
				
	 	  	(g)	  	 Adjustment of Base Rent
	  	49
				
	 	  	(h)	  	 Subordination of Expansion By Landlord Option
	  	49
			
	 21.2
	  	 Expansion By Tenant
	  	49
			
	 21.3
	  	 Other Provisions; Further Assurances
	  	49

  
  

 -v- 

 LEASE 
  
 THIS LEASE (“Lease”) is made as of March 20, 1997, by and between ADI MEMEC PARTNERS, L.P., a California limited partnership
(“Landlord”), and MEMEC, INC, a California corporation (“Tenant”). 
  
 RECITALS: 
  
 “Land” means an approximately 8.0 acre-sized parcel of land situated in the City of Reno, Washoe County, State of Nevada located in an area known as the South Meadows Planned Development, as approximately shown on the site
plan which is attached hereto as Exhibit “A” and made a part hereof, together with any appurtenant easements, which shall be comprised of a separate legal parcel created from a portion of the property which is described in
Exhibit “A-1” attached hereto and made a part hereof. Landlord is currently a party to a Purchase and Sale Agreement and Escrow Instructions (“Purchase Agreement”), dated as of December 30, 1996, by and between the
general partner of Landlord (as “Buyer”) and South Meadows Limited Partnership, a Nevada limited partnership (as “Seller”) to purchase the Land. The Purchase Agreement permits Buyer to assign its interest in the
Purchase Agreement to a limited partnership of which Buyer is the general partner. Landlord agrees to arrange such an assignment so that the Land will be conveyed directly to Landlord. 
  
 “Building” means the warehouse, distribution and office building of approximately 73,000 square feet (as
measured in accordance the method established by the American Industrial Real Estate Association for measuring the “gross” size of buildings of similar type and character, together with any “drip-line” area incorporated into the
design of the Building, as defined below) and which shall be constructed on the Land by Landlord in accordance with the Plans and Specifications, as that term is defined in Section 2.2 below. 
  
 “Improvements” means the Building and all improvements,
machinery, equipment, fixtures and other property, real, personal or mixed (except Tenant’s trade fixtures, machinery and equipment) installed or constructed on the Land or in the Building by Landlord (including, without limitation, the parking
facility and other site improvements and landscaping), together with all additions, alterations and replacements thereof. 
  
 “Demised Premises” means the Land and the Improvements, including the Shell Improvements and the Tenant Improvements, as those terms are
defined in Sections 2.8 (a) and (b) hereof. 
  
 Landlord, for and
in consideration of the rents, covenants and agreements hereinafter reserved, mentioned and contained on the part of Tenant, its successors and assigns, to be paid, kept, observed and performed under this Lease, hereby leases, rents, lets and
demises to Tenant, and upon and subject to the conditions and limitations expressed in this Lease, Tenant takes and hires from Landlord, the Demised Premises. 
  

ARTICLE I 
  
 TERM OF LEASE 
  
 1.1 Initial Term. This Lease shall be effective and binding upon the parties hereto upon mutual execution hereof (the “Effective Date”). The term of this Lease (the “Initial Term”) shall commence
upon the Commencement Date and shall end one hundred eighty (180) months after the Commencement Date (as defined below), subject to extension pursuant to Section 1.2, below. The 

 
“Commencement Date” (as that term is used in this Lease) shall mean the date upon which Substantial Completion (as defined in Section 2.3
below) of the Improvements occurs. Substantial Completion of the Improvements and the Commencement Date are currently anticipated to be December 15, 1997 (the “Target Commencement Date”). In the event the Commencement Date is
December 15, 1997, the Initial Term of this Lease will end on December 14, 2012. Within ten (10) business days following the Commencement Date, Tenant and Landlord shall mutually execute a written document acknowledging (i) the completion of the
Improvements, (ii) the actual Commencement Date and end of the Initial Term, (iii) the date by which the first Extension Option must be exercised, (iv) any adjustments in Base Rent pursuant to Section 2.9 hereof, and (v) the final monthly Base Rent
(the “Lease Commencement Memorandum”). 
  
 1.2
Option to Extend. Tenant shall have three (3) options to extend (the “Extension Options”) the Initial Term for consecutive five- (5) year periods (the foregoing option terms shall be referred to hereinafter sometimes as the
“Option Terms”), by delivering a binding written notice of exercise to Landlord (“Extension Notice”), so that Landlord receives the Extension Notice with respect to the first Option Term at least three hundred sixty
(360) days prior to the end of the Initial Term and with respect to the second and third Option Terms, 360 days prior to the end of the first or second Option Term, as the case may be. Tenant may exercise the Extension Options only if this Lease is
in full force and effect and there is no uncured Event of Default or any breach of Tenant’s obligations under this Lease which, with the passage of time and giving of notice, or both, would constitute an Event of Default if not cured within any
applicable cure period (an “Incipient Default”), at the time of exercise of the right of renewal or at the time of the commencement of the Option Term, but Landlord shall have the right at its sole discretion to waive the
non-default conditions herein; provided, however, that if an Event of Default or Incipient Default exists at the time Tenant exercises the Extension Option and Landlord does not elect to waive such Event of Default or Incipient Default, Landlord
shall provide written notice to Tenant of the existence and nature of such Event of Default and Tenant shall be allowed an amount of time to cure such Event of Default as is otherwise provided for curing defaults of that type under this Lease, and,
if timely cured, Tenant’s exercise of the Extension Option shall be reinstated effective as of the time of exercise. 
  
 1.3 Term. The Initial Term, together with any Option Term, are referred to in this Lease as the “Term.” 
  
 ARTICLE II 
  
 CONSTRUCTION OF THE IMPROVEMENTS 
  
 2.1 The Improvements. Landlord agrees to furnish all of the material, labor and equipment as may be reasonably necessary for the construction of
the Improvements in a good and workmanlike manner in substantial conformance with the Plans and Specifications (as defined in Section 2.2(a)) and in compliance with all covenants, conditions and restrictions to which the Land is subject and all
applicable building laws, ordinances, orders, rules, regulations and requirements of all federal, state and municipal governments with jurisdictional authority over the development of the Land and the construction of the Improvements (the
“Applicable Land Use Laws and Restrictions”). Landlord shall use its commercially reasonable efforts to achieve Substantial Completion of the Improvements by the Target Commencement Date. 
  
 2.2 Preparation of Plans and Specifications. The Plans and
Specifications for the development of the Property and the construction of the Improvements shall be developed as follows: 
  
 (a) As used in this Lease, the term “Plans and Specifications” shall mean collectively the “Preliminary Plans and Specifications,” the
“Schematic Design Drawings,” the “Design Development Drawings,” the “Construction Drawings” (all as defined herein), and all related plans, drawings, specifications and notes developed or prepared in connection
therewith. 
  

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 (b) Landlord and Tenant have agreed on a set of preliminary plans and specifications for the Improvements
prepared by Ware Malcomb Architects and Trommer & Associates (the “Architects”) which (i) describe and depict the site plan and interior floor plan configuration for the Building and certain preliminary exterior elevations
Improvements, and (ii) outline the specifications for the interior and exterior components of the Building. These preliminary plans and specifications (the “Preliminary Plans and Specifications”) are attached to this Lease as
Exhibit “B” and Landlord and Tenant intend that they shall serve as the basis upon which the Plans and Specifications will be prepared and finalized, in accordance with the provisions of this Section 2.2. 
  
 (c) As soon as is reasonably possible following execution of this Lease, but
in no event later than thirty (30) days after execution of this Lease, Landlord shall submit to Tenant reasonably detailed and dimensioned 1/8 scale preliminary schematic design drawings (“Schematic Design Drawings”) for the
Improvements consistent with the Preliminary Plans and Specifications. Within eight (8) business days after Landlord delivers to Tenant the Schematic Design Drawings, Tenant shall deliver to Landlord written notice of its approval or disapproval
thereof. Tenant shall not unreasonably withhold its approval of the Schematic Design Drawings and may only disapprove the Schematic Design Drawings if they do not substantially conform to the Preliminary Plans and Specifications. If Tenant
disapproves any portion of the Schematic Design Drawings, then Tenant shall specifically and in writing (a) approve those portions which are acceptable to Tenant and (b) disapprove those portions which are not acceptable to Tenant, specifying the
reasons for such disapproval and describing in detail the change Tenant requests for each item disapproved. The failure of Tenant to disapprove the Schematic Design Drawings within the specified time shall be deemed approval thereof. In the event
the Improvements Schematic Design Drawings have been disapproved by Tenant, and Tenant and Landlord are unable to resolve Tenant’s disapproval after good faith efforts to do so over a period of five (5) business days after delivery of
Tenant’s notice disapproving the Improvements Design Drawings, Landlord and Tenant shall submit their disagreement to the dispute resolution procedure described in subsection (f), below. 
  
 (d) As soon as is reasonably practicable following approval of the Schematic
Design Drawings, and consistent with the Substantial Completion of the Improvements by the Target Commencement Date, Landlord shall submit to Tenant reasonably detailed preliminary construction drawings for the Improvements (“Design
Development Drawings”) which are substantially consistent with the approved Schematic Design Drawings . Within eight (8) business days after Tenant receives the Design Development Drawings, Tenant shall deliver to Landlord written notice of
Tenant’s approval or disapproval of the Design Development Drawings. Tenant shall not unreasonably withhold its approval of the Design Development Drawings and may only disapprove the Design Development Drawings if they do not substantially
conform to the approved Schematic Design Drawings. If Tenant disapproves any portion of the Design Development Drawings, then Tenant shall specifically and in writing (a) approve those portions which are acceptable to Tenant and (b) disapprove those
portions which are not acceptable to Tenant, specifying the reasons for such disapproval and describing in detail the change Tenant requests for each item disapproved. The failure of Tenant to disapprove the Design Development Drawings within the
specified time shall be deemed approval thereof. In the event the Design Development Drawings have not been fully approved by Tenant, and Tenant and Landlord are unable to resolve Tenant’s disapproval after good faith efforts to do so over a
period of five (5) business days after delivery of Tenant’s notice disapproving the Design Development Drawings, Landlord and Tenant shall submit their disagreement to the dispute resolution procedure described in subsection (f), below.

  
 (e) As soon as is reasonably practicable following approval of
the Design Development Drawings, and consistent with the Substantial Completion of the Improvements by the 

  

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Target Commencement Date, Landlord shall submit to Tenant 1/4 or 1/8 scale construction drawings for the Improvements (“Construction
Drawings”) which are substantially consistent with approved Design Development Drawings. These Construction Drawings shall include all information reasonably necessary to construct the Improvements. Within five (5) business days after
Tenant receives the Construction Drawings, Tenant shall deliver to Landlord written notice of Tenant’s approval or disapproval of the Construction Drawings. Tenant shall not unreasonably withhold its approval of the Construction Drawings and
may only disapprove the Construction Drawings if they do not substantially conform to the approved Design Development Drawings. If Tenant disapproves any portion of the Construction Drawings, then Tenant shall specifically and in writing (a) approve
those portions which are acceptable to Tenant and (b) disapprove those portions which are not acceptable to Tenant, specifying the reasons for such disapproval and describing in detail the change Tenant requests for each item disapproved. The
failure of Tenant to disapprove the Construction Drawings within the specified time shall be deemed approval thereof. In the event the Construction Drawings have not been fully approved by Tenant, and Tenant and Landlord are unable to resolve
Tenant’s disapproval after good faith efforts to do so over a period of five (5) business days after delivery of Tenant’s notice disapproving the Construction Drawings, Landlord and Tenant shall submit their disagreement to the dispute
resolution procedure described in subsection (f), below. 
  
 (f)
In the event Landlord and Tenant are unable to resolve Tenant’s disapproval of a phase of the development of the Plans and Specifications under subsections (c), (d) or (e), above (a “Design Dispute”), they shall resolve those
differences through the binding arbitration of a neutral third­party in accordance with the following procedure: Landlord and Tenant shall immediately meet to make a good faith attempt to mutually appoint a single party who shall be a licensed
architect (“Arbitrating Architect”), with not less than ten (10) years experience in commercial and industrial architecture and who is not employed or otherwise previously affiliated with either party; to arbitrate their differences
and resolve the Design Dispute. If Landlord and Tenant are unable to agree upon a single Arbitrating Architect, then each shall, within two (2) business days after the meeting, select an architect that meets the foregoing qualifications. The two (2)
architects so appointed shall, within two (2) business days after their appointment, appoint a third architect meeting the foregoing qualifications who shall serve as the Arbitrating Architect. If the two (2) architects so selected cannot agree on
the selection of the Arbitrating Architect within the time above specified, then either party, on behalf of both parties, may request the appointment of the Arbitrating Architect to the Presiding Judge of the San Diego County Superior Court. The
procedures for arbitrating and resolving the Design Dispute shall be established by the Arbitrating Architect, provided, however, that the parties agree to the use of the rules of the American Arbitration Association regarding resolution of
commercial disputes. The determination of the Arbitrating Architect shall be limited solely to the issue of the Design Dispute and shall be made within ten (10) business days of its submission by the parties for arbitration. The decision of the
Arbitrating Architect shall be binding on both parties. The costs of the Arbitration, including, without limitation, attorneys’ fees and costs, witness fees, expert witness fees, and costs of the arbitration proceeding shall be awarded by the
Arbitrating Architect to the prevailing party. In the event of any judicial enforcement or confirmation proceeding relating to an arbitration award, the prevailing party shall be entitled to recover from the other party all related costs, including
attorneys’ fees and costs. 
  
 (g) Upon approval of the
Construction Drawings, the Plans and Specifications shall be deemed approved by Landlord and Tenant and shall, thereafter, be the Plans and Specifications for the construction of the Improvements. Tenant shall not assume any liability for defects in
the design of the Shell Improvements or the Tenant Improvements as a result of Tenant’s involvement in the process described in this Section 2.2 and shall not diminish Landlord’s responsibilities under this Lease or otherwise for any such
defects. 
  

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 (h) Landlord and Tenant acknowledge that Tenant intends to install a significant amount of its own trade
fixtures, furnishings and equipment in the Demised Premises and that it will be necessary to include consideration of some of those items in the preparation of the Plans and Specifications. 
  
 2.3 Substantial Completion of the Improvements. 
  
 (a) “Substantial Completion” of the Improvements shall be
deemed to have occurred on the earlier to occur of when (i) (A) the Improvements have been completed in substantial conformance with the Plans and Specifications, subject to the completion of “punch-list” items (the
“Punchlist”) identified by Landlord and Tenant as described in Section 2.3(c) below (“punch-list items” being defined to mean minor items needing correction or repair which do not or will not materially interfere with
Tenant’s use and enjoyment of the Building), (B) the parking facilities to which Tenant is entitled under this Lease have been completed other than as identified on the Punchlist, (C) all systems of the Building are in good working order, and
(D) Tenant can physically and legally occupy the Demised Premises (e.g., a permanent Certificate of Occupancy or temporary certificate of occupancy which is subsequently converted into or replaced without any lapse by a permanent certificate of
occupancy, or such alternate certificate, license, permit or other document which is issued by the appropriate agency with legal authority over the occupancy of commercial or industrial structures in the jurisdiction in which the Demised Premises
are located (“Certificate of Occupancy”) has been issued for the Demised Premises, or (ii) the Improvements would have been so completed and Tenant legally entitled to occupy the Demised Premises but for any Tenant-Caused Delays in
Landlord (A) achieving Substantial Completion or (B) obtaining the Certificate of Occupancy. Landlord shall deliver to Tenant a copy of any Certificate of Occupancy issued by City for the Demised Premises promptly upon receipt. Landlord will use its
commercially reasonable efforts to keep Tenant informed on a monthly basis following execution of this Lease of the anticipated Commencement Date. Landlord shall provide Tenant with no less than sixty (60) days advance notice of the actual
Commencement Date. Landlord shall deliver to Tenant a certificate from the Architect (as defined above) certifying Substantial Completion of the Improvements on or before the Commencement Date. 
  
 (b) “Tenant Change Order” shall be defined as any change to
the Plans and Specifications which is requested by Tenant, including changes which are requested by Tenant during the finalization of the Plans and Specifications which increase the scope of the Shell Improvements or the Tenant Improvements (as
defined in Section 2.8, below) from those described in the Preliminary Plans and Specifications, and changes requested by Tenant in the Plans and Specifications after their completion, including during construction of the Demised Premises.

  
 (c) “Tenant-Caused Delay” shall be defined as
(i) the failure of Tenant, its officers, directors, partners, agents, employees, or contractors to (A) perform some act or pay some amount within the time provided in this Lease, or (B) approve or reasonably disapprove any draft of the Plans and
Specifications within the time period specified in Section 2.2, above, or (ii) any other act or omission by Tenant, its officers, directors, partners, agents, employees, or contractors to the extent it causes a delay in Substantial Completion or in
the issuance of the Certificate of Occupancy, including, without limitation, a delay caused by (A) delay in finalization of the Plans and Specifications caused by Tenant or a Design Dispute resolved substantially against Tenant’s position, or
(B) a Tenant Change Order; provided, however, that Landlord shall have given written notice to Tenant of the number of days of Tenant-Caused Delay due to such requested Tenant Change Order. Tenant may revoke a Tenant Change Order if it notifies
Landlord of such revocation within two (2) business days following receipt of Landlord’s written notice. Landlord shall notify Tenant in writing of the occurrence of any Tenant-Caused Delay within two (2) business days after learning of the
same. If Landlord fails to timely notify Tenant of an event which would otherwise be a Tenant-Caused Delay, the Tenant-Caused Delay shall not commence until such 

  

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notice is delivered. Neither a delay in the finalization of the Plans and Specifications caused by Landlord nor a Design Dispute which is resolved
substantially against Landlord’s position shall be considered a “Tenant-Caused Delay.” 
  
 (d) Punchlist Preparation. On or immediately before the Commencement Date, Landlord and Tenant shall conduct a walk-through inspection of the
Demised Premises and shall jointly prepare the Punchlist. Landlord shall cause such items to be corrected within thirty (30) days thereafter, provided, however, if by the nature of such Punch-list item, more than thirty (30) days is required to
effect such correction, Landlord shall not be in default hereunder if such correction is commenced within ten (10) days of it being identified and is diligently pursued to completion. Approximately thirty (30) days following the Commencement Date,
Landlord and Tenant shall again conduct a walk-through inspection to determine if any remaining punch-list items require correction, and Landlord shall cause all such corrective work to be undertaken and completed promptly thereafter. If,
thereafter, Landlord fails to diligently pursue completion of the Punchlist items, and such failure continues for five (5) days after notice from Tenant, Tenant may complete such items and offset the reasonable cost thereof against Base Rent and
Additional Rent. 
  
 (e) Base Rent Payment. Tenant shall
not be liable to Landlord for the payment of Base Rent, Additional Rent (as hereinafter defined) or any other amount to be paid by Tenant under this Lease (except as specifically provided elsewhere in this Lease) until the Commencement Date. The
failure of Tenant to take possession of or to occupy the Demised Premises on or after the Commencement Date shall not serve to relieve Tenant of its obligations or delay Tenant’s obligation to pay Rent, Additional Rent, or any other amount to
be paid by Tenant to Landlord under this Lease. 
  
 2.4
Purchase of Land; Delay in Substantial Completion. 
  
 (a)
Landlord does not own the Land as of the date of this Agreement. The obligations of Landlord and Tenant under this Lease are expressly conditioned upon Landlord’s purchase of the Land pursuant to the Purchase Agreement. The scheduled date for
the closing of Landlord’s purchase of the Land is April 30, 1997 (“Scheduled Closing Date”). Landlord may elect to terminate the Purchase Agreement at any time prior to March 31, 1997 (“Due Diligence Date”),
without further liability thereunder. If Landlord elects to terminate the Purchase Agreement before the Due Diligence Date, Landlord shall concurrently notify Tenant of such termination and this Lease shall immediately terminate without any further
obligation of either party to the other. If Landlord does not elect to terminate the Purchase Agreement prior to the Due Diligence Date, Landlord will use its commercially reasonable efforts to complete the purchase of the Land in accordance with
the terms of the Purchase Agreement. If Landlord does not elect to terminate the Purchase Agreement prior to the Due Diligence Date, but has not purchased the Land by June 30, 1997, Tenant may terminate this Lease by delivering written notice of
termination to Landlord by no later than July 15, 1997, in which case this Lease shall immediately terminate and neither party shall have any further obligation to the other, except as otherwise provided below. If Landlord does not elect to
terminate the Purchase Agreement prior to the Due Diligence Date, but has not purchased the Land by September 30, 1997, either Landlord or Tenant may terminate this Lease by delivering written notice of termination to the other at any time
thereafter, in which case this Lease shall immediately terminate and neither party shall have any further obligation to the other, except as otherwise provided below. If the reason for Landlord’s failure to purchase the Land was for reasons
other than Landlord’s default under the Purchase Agreement (e.g. because the Land has not been successfully subdivided), and this Lease is terminated as provided above, Landlord shall reimburse Tenant for its actual out-of-pocket expenses
incurred in connection with the preparation of the Plans and Specifications, up to the maximum amount of One Hundred Thousand Dollars ($100,000). If the reason for Landlord’s failure to purchase the Land was because of Landlord’s default
under the Purchase Agreement, and this Lease is terminated as provided above, Landlord shall reimburse Tenant for 

  

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its actual out-of-pocket expenses incurred in connection with the preparation of the Plans and Specifications, up to the maximum amount of One Hundred
Thousand Dollars ($100,000). Any delay in Landlord’s purchase of the Land beyond the Scheduled Closing Date which is a result of factors outside of Landlord’s reasonable control, including, without limitation, a delay in successfully
subdividing the Land into a legal parcel, shall be referred to herein as an “Excused Delay” and shall result in an extension of the Target Commencement Date as provided in subsection (b), below. 
  
 (b) Landlord hereby grants to Tenant a security interest in Landlord’s
rights under the Purchase Agreement for the purpose of securing Landlord’s obligation to exercise commercially reasonable efforts to complete the purchase of the Land in accordance with the Purchase Agreement as undertaken in paragraph (a),
above. In the event Landlord defaults in its obligations under the Purchase Agreement and, as a result, Tenant terminates the Lease pursuant to paragraph (a), above, then Tenant shall have the right to exercise all rights and remedies available to a
secured creditor after a default including, but not limited to, the rights and remedies of secured creditors under the Nevada Uniform Commercial Code and the California Uniform Commercial Code and Landlord shall execute a Financing Statement (Form
UCC-1) evidencing the security interest granted to Tenant hereby and Tenant shall be entitled to file such Financing Statement with the California Secretary of State and the Nevada Secretary of State in order to perfect such security interest.

  
 (c) Landlord shall diligently proceed with the construction of
the Improvements and complete the same and deliver possession thereof to Tenant on or before the Target Commencement Date, provided, however, to the extent (i) a Tenant-Caused Delay (as defined in Section 2.3(b) hereof), (ii) a Force Majeure (as
defined below), (iii) an Excused Delay (as defined in subsection (a), above), or (iv) a Design Dispute (as defined in Section 2.2(f) hereof) which is resolved substantially against Tenant’s position, results in a delay in Substantial Completion
of the Improvements, the Target Commencement Date shall be extended for the amount of time the Substantial Completion of the Improvements is delayed thereby. “Force Majeure” shall be defined as any factor or condition which is
outside the control of either Tenant or Landlord and for which neither could have reasonably been anticipated or expected to plan, including, without limitation, (i) unusually inclement weather, or inclement weather which occurs at unusual times,
(ii) other acts of God, (iii) labor disputes, (iv) casualties, (v) embargo, (vi) governmental restrictions, (vii) shortages of fuel, labor, or building materials, (viii) civil unrest, (ix) action or non-action of public utilities, or of local, state
or federal governments which delay the Substantial Completion of the Demised Premises, and (x) action or non-action of local, state or federal governments which prevent, prohibit or stop construction of the Demised Premises. Notwithstanding the
foregoing, those events described in subsections (iii), (v), (vi), (vii), (ix) and (x) of the preceding sentence will constitute Force Majeure events only if they are generally applicable to the construction industry in Reno, Nevada. If the
Commencement Date has not occurred (or been deemed to have occurred) by one (1) year after the Target Commencement Date (as that date may be adjusted pursuant to Section 2.3, above), either Tenant or Landlord, upon written notice to the other, may
terminate this Lease. Landlord shall give written notice to Tenant of the estimated number of days of delay due to Force Majeure within two (2) business days after Landlord learns of such delay. If Landlord fails to timely notify Tenant of an event
which would otherwise be a delay due to Force Majeure, the Force Majeure delay shall not commence until such notice is delivered. 
  
 2.5 Building Permit for the Improvements. Landlord shall be responsible (at its sole cost and expense) for obtaining from any relevant and
jurisdictional governmental authority necessary (generally an “Authority”), all governmental approvals necessary for the construction of the Improvements, including a building permit (“Building Permit”). If a change
to the Plans and Specifications is required by the Authority as a condition to obtaining the Building Permit, such change shall be made to the Plans and Specifications and deemed to have been approved by Tenant and the cost associated with any such
changes shall be added to Shell Improvements Cost and Tenant Improvements 

  

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Cost, as defined in Section 2.8, below. Tenant shall not unreasonably withhold its consent to any such change. Tenant shall cooperate with Landlord as may be
reasonably necessary to obtain the Building Permit and any and all other permits required to complete the Improvements and lease them to Tenant pursuant to this Lease. 
  
 2.6 Construction Warranties. Landlord shall obtain the manufacturer’s warranties for the elements or systems
which are part of the Demised Premises and which are customarily given by such manufacturers without additional cost to Landlord and warranties and guaranties from the contractors and subcontractors with respect to the Improvements and which are
customarily given by such contractors and subcontractors without additional cost to Landlord. Landlord shall assign to Tenant for the Term of the Lease (or, should Tenant not be legally capable of doing so itself, at Tenant’s expense, prosecute
on Tenant’s behalf), on a non-exclusive basis, all statutory and contractual warranties and guaranties to which Landlord is entitled in connection with the Demised Premises, express or implied, including, without limitation the warranties
arising under any construction contract between Landlord and Landlord’s contractors and/or subcontractors involved in the construction of the Demised Premises. Other than the assignment to Tenant of such warranties, or as otherwise specifically
provided in this Lease, Landlord shall have no obligation or responsibility to Tenant, or its successors, with respect to any condition of the Improvements. Landlord, at no cost or expense to Landlord, shall cooperate with Tenant in the enforcement
by Tenant, at Tenant’s sole cost and expense, of any such warranties or guaranties. Among the warranties which Landlord shall obtain shall be a ten (10)-year warranty on the roof membrane. 
  
 2.7 Condition of Demised Premises; Limited Warranty. Except as
specifically provided in this Section 2.7, Landlord makes no representations or warranties with regards to the Demised Premises, or any portion thereof, and Tenant shall accept the Demised Premises in the condition in which they are delivered on the
Commencement Date, provided that the Demised Premises shall be constructed (A) in substantial conformance with the Plans and Specifications, and (B) in conformance with all Applicable Land Use Laws and Restrictions then in effect. Landlord warrants
to Tenant that, for the Term of this Lease, the foundation, slab structure, exterior wall structure, and roof structure (excluding the roof membrane), shall be free of latent defects in their original design, workmanship and materials. 

 
 2.8 Tenant Improvements Allowance; Tenant Responsibility.

  
 (a) Landlord shall be responsible for constructing, entirely
at its expense, subject to the provisions of Section 3.3 of this Lease, the Shell Improvements (as that term is defined below). The Shell Improvements shall consist of, and the term “Shell Improvements” shall be used in this Lease
to mean, those components of the Demised Premises which are identified in the Preliminary Plans and Specifications and ultimately in the final Plans and Specifications as elements of the basic Building shell or specifically as “Shell
Improvements,” land, land preparation, landscaping and all necessary utilities stubbed to the Building, or as otherwise mutually identified by Landlord and Tenant, in writing, concurrent with or subsequent to the execution of this Lease. The
Base Rent specified in this Lease includes Landlord’s obligation to complete and deliver to Tenant the Shell Improvements in accordance with this Lease. The cost of constructing the Shell Improvements are referred to in this Lease as the
“Shell Improvements Cost.” Shell Improvements Cost shall include a reasonable developer fee, payable to Landlord, or an affiliate of Landlord (with no direct obligation to Tenant to pay such fee). 
  
 (b) Landlord shall be responsible for constructing, subject to the provisions
of this Section 2.8 and 2.9 below, the Tenant Improvements (as that term is defined below). The Tenant Improvements shall consist of, and the term “Tenant Improvements” shall be used in this Lease to mean, those portions of the
Demised Premises which are not identified in the Preliminary Plans and 

  

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Specifications or ultimately the final Plans and Specifications as part of the Shell Improvements, or as otherwise mutually identified by Landlord and
Tenant, in writing, concurrent with or subsequent to the execution of this Lease. 
  
 (c) Landlord shall provide an allowance to be applied by Landlord towards paying the costs of designing and constructing the Tenant Improvements (the “Tenant Improvements Cost”), which shall be
comprised of fees and reimbursables for project programming, design, architecture and engineering, reimbursables, and the direct construction cost (excluding any overhead or profit to Landlord or any affiliate) of Tenant Improvements paid to the
Contractor (as defined below) or others performing such work. The allowance shall be in the amount of One Million Four Hundred Sixty Thousand Dollars ($1,460,000) (the “Tenant Improvements Allowance”). The Tenant Improvements
Allowance shall not be used for, nor shall Shell Improvements include, the costs of specialized cabling or Tenant’s moving expenses, such items being Tenant’s sole financial responsibility. 
  
 (d) In the event that the Tenant Improvements Allowance is insufficient in
amount to pay the Tenant Improvements Cost, the Base Rent shall be increased or Tenant shall pay such excess to Landlord as Tenant’s Share pursuant to the procedure set forth in Section 2.9 below. 
  
 (e) Upon execution of this Lease and again, upon submittal of the Schematic
Design Drawings, the Design Development Drawings, and the Construction Drawings, Landlord shall also provide Tenant with an estimate of the Tenant Improvements Cost. An estimate of the Tenant Improvements Cost which has been prepared based on the
Preliminary Plans and Specifications, is attached to this Lease as Exhibit “D” (the “Tenant Improvements Budget Estimate”). Within fifteen (15) days prior to the commencement of construction of the Improvements, and no
less than monthly thereafter during the course of construction of the Improvements, Landlord shall deliver to Tenant a revised Tenant Improvements Budget Estimate, whether reflecting an increase or a decrease in the Tenant Improvement Costs,
together with an explanation in reasonable detail of the cause of such cost change and an accounting of actual costs to date (“Periodic Cost Report”). 
  
 (f) Additionally, prior to any Tenant Change Order being effective, Landlord shall provide Tenant with an estimate of the
cost of said Tenant Change Order (whether an increase in Shell Improvements Costs or Tenant Improvements Costs) and obtain Tenant’s prior approval thereof, which Tenant shall grant or withhold within two (2) business days following receipt of
such estimated Tenant Change Order cost. In addition, Landlord shall deliver a Period Cost Report to Tenant no later than five (5) business days after Landlord learns of a material change affecting the Tenant Improvements Budget Estimate. Similarly,
Landlord shall provide Tenant with an estimate of the cost of any Tenant-Caused Delay claimed by Landlord as soon as reasonably possible after Landlord learns of the Tenant-Caused Delay. 
  
 2.9 Responsibility for Excess Costs and Excess Tenant Improvements Cost; Tenant Improvements Costs Savings.

  
 (a) The Base Rent has been determined based on the assumption
that (i) the Plans and Specifications will not vary materially in scope from the Preliminary Plans and Specifications, for whatever reason, (ii) once finalized, the Plans and Specifications will not be altered as a result of Tenant Change Orders,
and (iii) no Shell Improvements Costs or Tenant Improvements Costs will be incurred in connection with the construction of the Demised Premises resulting from Tenant-Caused Delays. 
  

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 (b) The monthly Base Rent, as defined in Section 3.1 hereof, shall be adjusted as follows: 
  
 (i) Shell Improvements Costs incurred by Landlord or Tenant Improvements
Costs incurred by Landlord in excess of the Tenant Improvements Allowance, as a result of (A) Tenant Change Orders, or (B) Tenant-Caused Delays, including, without limitation, financing costs, shall result in an increase in the monthly Base Rent by
an amount equal to the product of (i) such costs, up to a total of $50,000 (the “Excess Cost Threshold”), (ii) multiplied by .1225, (iii) divided by 12. 
  
 (ii) Shell Improvements Costs incurred by Landlord or Tenant Improvements Costs incurred by Landlord in excess of the
Tenant Improvements Allowance, as a result of Force Majeure causes shall result in an increase in the monthly Base Rent by an amount equal to the product of (i) such costs, (ii) multiplied by .1225, (iii) divided by 24. 
  
 (iii) In the event the costs incurred by Landlord in the construction of the
Tenant Improvements is less than the Tenant Improvements Allowance, the monthly Base Rent shall be decreased by an amount equal to (i) the Tenant Improvements Allowance, (ii) minus the actual Tenant Improvements Cost, (iii) multiplied by .1225,
(iii) divided by 12. 
  
 (iv) In the event there is a reduction
in Shell Improvements Costs incurred by Landlord as a direct result of a Tenant Change Order which reduces the scope of the Shell Improvements, the monthly Base Rent shall be decreased by an amount equal to (i) the reduction in Shell Improvements
Costs, (ii) multiplied by .11, (iii) divided by 12. 
  
 (v) In
the event any such adjustment in the monthly Base Rent is required, Landlord shall calculate such adjustment within ten (10) days following the delivery to Tenant of the Final Cost Report, as defined in subsection (e) below, and Landlord shall, at
that time, deliver a written notice to Tenant of the amount of such adjustment. Landlord and Tenant shall execute such documents as may be reasonably necessary to evidence and formalize such adjustment, including, without limitation, the Lease
Commencement Memorandum or an amendment to this Lease, and, if there has been an increase, Tenant shall, within five (5) business days after receiving the notice from Landlord, pay to Landlord, as Additional Rent, an amount equal to such increase
multiplied by the number of months of Base Rent Tenant has previously paid to Landlord, and if there has been a decrease, Tenant shall be entitled to a credit against the next payment of monthly Base Rent due and payable equal to the amount of such
decrease multiplied by the number of months of Base Rent Tenant has previously paid to Landlord. 
  
 (c) To the extent they exceed the Excess Cost Threshold, Tenant shall be directly responsible, as Additional Rent, for any Shell Improvements Costs or
Tenant Improvements Costs (including financing costs) (“Excess Costs”), resulting from (A) Tenant Change Orders, which have not been offset by savings resulting directly from Tenant Change Orders, or (B) Tenant-Caused Delays. Each
Periodic Cost Report and the Final Cost Report shall include notification to Tenant of any Excess Costs. Tenant shall pay the Excess Costs to Landlord, as Additional Rent, upon the earlier to occur of (i) funding of Landlord’s
construction loan, provided that Landlord has notified Tenant of Excess Costs prior thereto, which notification shall be in writing and shall include reasonably detailed documentation supporting the calculation of such Excess Costs (an
“Excess Cost Notice”), (ii) if such Excess Costs are determined after funding of the construction loan, within ten (10) business days after delivery of an Excess Cost Notice to Tenant by Landlord, or (iii) within ten (10) business
days after the Final Cost Report if such report includes Excess Costs which have not been previously paid to Landlord. 
  
 (d) Within ninety (90) days following Substantial Completion of the Improvements, Landlord shall calculate, and report to Tenant, in writing, (i) the
final Shell Improvements Cost and the final Tenant Improvements Cost, and (ii) the amount of any Excess Costs (the “Final Cost Report”). In the event there are Excess Costs which have not been paid by Tenant at the time of such
final determination (e.g. Excess Costs), then Tenant shall pay such additional amount to Landlord within ten (10) business days following such final determination. All of the Periodic Cost Reports and the Final Cost Report shall include reasonably
detailed supporting explanations and documentation. 
  

 - 10 - 

 (e) Landlord shall maintain accurate and complete books and records of all Shell Improvements Costs and
Tenant Improvements Costs. Tenant may inspect and audit such books and records at Landlord’s office in San Diego, California, provided that (i) Tenant shall deliver Landlord no less than seventy-two (72) hours prior written notice of its desire
to inspect and audit such books and records, and (ii) with respect to Shell Improvements Costs, such audit and inspection shall be limited to verification of any Excess Costs Landlord is requesting Tenant to pay. 
  
 2.10 Contractor. Reno Contracting, Inc., a California corporation
(“Contractor”), shall act as the general contractor for the construction of the Shell Improvements and the Tenant Improvements. Landlord represents and warrants that prior to the commencement of construction of the Improvements
Contractor shall have been issued all licenses required by the State of Nevada or any other governmental body or agency with appropriate legal jurisdiction for Contractor to act as the general contractor for the construction of the Improvements.
Contractor’s contract shall be on a “cost-plus” basis, with Contractor entitled to (i) reimbursement for direct insurance expenses and direct “G&A” or “General Conditions” expenses, as provided in the Estimated
Budget and (ii) a profit of no more than five percent (5%). Landlord shall cause the Contractor to bid each component of the Improvements to at least three (3) qualified subcontractors and, unless Landlord and Tenant agree otherwise, shall select
the lowest qualified bidder. Tenant shall have the right to approve the list of subcontractors to be solicited for bids and to designate subcontractors to participate in the bidding process. Tenant shall also have the right to select subcontractors
to perform components of the Improvements if Tenant agrees to pay any Excess Costs attributable to such election, provided such subcontractor is reasonably acceptable to Landlord and Contractor. 
  
 2.11 Tenant’s Entry Into the Building Prior to Substantial
Completion. Provided that Tenant and its agents, employees and contractors do not materially interfere with the Contractor’s work on the Demised Premises (any such interference constituting a basis for a Tenant-Caused Delay), Landlord shall
allow and shall require the Contractor to allow, Tenant and Tenant’s agents, employees and contractors access to the Building prior to Substantial Completion of the Improvements so that Tenant may install its furniture, trade fixtures, data and
telecommunications wiring and equipment, photocopy equipment and other business equipment in the Building. Prior to Tenant’s entry into the Building as permitted by the terms of this Section 2.11, Tenant shall arrange a schedule with Landlord
and the Contractor in order to coordinate the timing of Tenant’s entry with the actions of the Contractor. Prior to any such entry, Tenant or its agents and contractors (as applicable) shall provide evidence of insurance reasonably satisfactory
to Landlord. Tenant acknowledges that Section 20.3 below shall apply with respect to any and all claims which may arise as a result of the entry by Tenant, its agents, employees and contractors on the Demised Premises in accordance with this Section
2.11. Tenant’s responsibilities under Section 7.1 of this Lease shall commence upon such early occupancy as opposed to the Commencement Date. 
  

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 Article III 
  
 RENT 
  
 3.1 Base Rent. In consideration of the lease of the Demised Premises evidenced by this Lease, Tenant covenants to pay Landlord, without previous
demand therefor and without any right of set-off or deduction whatsoever except as expressly provided in this Lease, at the office of Landlord at: 
  
 ADI MEMEC Partners, L.P. 
 c/o The Allen Group

 4365 Executive Drive, Suite 850 
 San Diego, CA 92121-2130 
 Attention: Mr. Steven L. Black 
  
 or at such other place as Landlord may from time to time designate in writing, a rental for the Initial Term of this Lease as hereinafter
set forth, payable monthly, in advance, in equal installments as hereinafter set forth, with the first payment due on the Commencement Date, and continuing on the first day of each month thereafter for the succeeding months during the balance of the
Term (“Base Rent”), as follows: 
  

									
	 Period

	  	Monthly Base Rent

	 	 	Annual Base Rent

	 
	Months 1-36	  	$	*	**	 	$	*	**
	Months 37-72	  	$	*	**	 	$	*	**
	Months 73-108	  	$	*	**	 	$	*	**
	Months 109-144	  	$	*	**	 	$	*	**
	Months 145-180	  	$	*	**	 	$	*	**

  
 In the event the
Commencement Date occurs on other than the first (1st) day of a month, the Initial Term shall be extended by the number of days remaining in the month in which the Commencement Date occurs and the first payment of Base Rent due on the Commencement
Date shall be a sum equal to (i) the monthly Base Rent for the month in which the Commencement Date occurs, prorated based on a thirty (30) day month, plus (ii) the monthly Base Rent for the first full calendar month of the Initial Term. 

 
 3.2 Base Rent During Option Term. The Base Rent during the Option
Term (“Option Term Base Rent”) shall be an amount equal to the greater of (i) ninety five percent (95%) of the then fair market rental value of the Demised Premises (“Fair Market Rental Value”), as stated on a
monthly basis and determined pursuant to this Section 3.2, or (ii) the Base Rent during the last month of the Initial Term, multiplied by .95. The Option Term Base Rent shall be increased to an amount equal to 1.09 times the then applicable Option
Term Base Rent, as may have been previously adjusted pursuant to this Section 3.2, every thirty­six (36) months during the Option Term. Upon receipt by Landlord of Tenant’s Extension Notice under Section 1.2, above, Landlord and Tenant
shall meet in an effort to negotiate, in good faith, the Option Term Base Rent which shall become effective as of the first day of the Option Term (“Option Term Commencement Date”). If Landlord and Tenant have not agreed upon the
Option Term Base Rent within thirty (30) days after the delivery of Tenant’s Extension Notice, the Option Term Base Rent shall be determined as follows: 
  
 (a) Landlord and Tenant shall attempt to agree in good faith upon a single appraiser not later than thirty (30) days after delivery of Tenant’s
Extension Notice. If Landlord and Tenant are unable to agree upon a single appraiser within such time period, then Landlord and Tenant shall deliver to the other a proposal containing the Fair Market Rental Value and Base Rent for the Option Term
that the submitting party believes to be correct (“Extension Proposal”). If either party fails to timely submit an Extension Proposal, the other party’s submitted proposal shall determine the Fair Market Rental Value and Base
Rent for the Option Term. If both parties submit Extension Proposals, then Landlord and Tenant shall meet within seven (7) days after delivery of the last Extension Proposal and make a good faith attempt to mutually appoint a single appraiser to
determine the Fair Market Rental Value and Base Rent for the Option Term. If Landlord and Tenant are unable to agree upon a single appraiser, then each shall, within two (2) business days after the meeting, select an appraiser. The two (2)
appraisers so appointed shall, within two (2) business days after their appointment, appoint a third appraiser. If the two (2) appraisers so selected cannot agree on the selection of the third appraiser within the time above 

	***	Material has been omitted pursuant to a request for confidential treatment. 

  

 - 12 - 

 
specified, then either party, on behalf of both parties, may request the appointment of the third appraiser to the Presiding Judge of the Washoe County,
Nevada, court which would have jurisdiction over litigation of disputes under this Lease. All appraisers shall be independent from, and disinterested in, both Landlord and Tenant. 
  
 (b) The determination of the appraiser shall be limited solely to the issue of whether Landlord’s or Tenant’s
Extension Proposal most closely approximates the Fair Market Rental Value. The decision of the appraiser shall be made within thirty (30) days after the appointment of the single appraiser or the third appraiser, as applicable. The appraiser shall
have no authority to create an independent structure of the Fair Market Rental Value or prescribe or change any or several of the components or the structure of the Fair Market Rental Value; the sole decision to be made shall be which of the
parties’ Extension Proposals shall determine the Fair Market Rental Value and the Base Rent for the Renewal Term. The decision of the single appraiser shall be final and binding upon the parties. If either party fails to appoint an appraiser
within the time period specified above, the appraiser appointed by one of them shall reach a decision which shall be binding upon Landlord and Tenant. 
  
 (c) All appraisers appointed by or on behalf of either party or appointed pursuant to the provisions hereof shall be MAI members of the American Institute
of Real Estate Appraisers with not less than five (5) years of experience in the appraisal of improved commercial and industrial real estate in the Washoe County, Nevada, area and be devoting substantially all of their time to professional appraisal
work at the time of appointment and be in all respects impartial and disinterested. 
  
 (d) Each party shall bear the cost of its own appraiser and the parties shall share equally the cost of any single or third appraiser, if applicable. 
  
 (e) For the purpose of such appraisal and this subsection (d), the term “Fair Market Rental Value” shall mean the
price that a ready and willing single tenant would pay, as of the Option Term Commencement Date, as annual rent to a ready and willing landlord of a property comparable to the Demised Premises on the terms of this Lease, if such property were
exposed for lease on the open market for a reasonable period of time. A “comparable property” shall mean an office and specialized distribution facility located in Washoe County, Nevada (the “Market Area”), with
improvements similar in age and character to the Demised Premises, which has been improved with the tenant improvements comparable to those constructed in the Demised Premises; provided, however, that the appraisal shall disregard the value of the
equipment which Tenant is entitled to remove at the expiration or termination of the Term of this Lease. The appraiser shall give appropriate consideration to all relevant factors, including, without limitation, (i) the fact that this Lease is a
“triple net” lease, (ii) rental concessions and tenant improvement allowances generally being offered by landlords of comparable properties, (iii) the age of the Improvements, (iv) the condition of the Demised Premises on the assumption
that Tenant has complied with its obligations to maintain and repair the Demised Premises, (v) rental market conditions then in existence, (vi) whether Landlord will or will not be required to pay a real estate brokerage commission in connection
with Tenant’s exercise of the Extension Option, and (vii) the fact that the Tenant will be accepting the Demised Premises in an “As-Is” condition. 
  
 (f) Landlord and Tenant shall instruct the appraiser, in writing, to complete their written determination of the Fair Market
Rental Value not later than thirty (30) days after their selection. If the Fair Market Rental Value has not been determined by such date, then the Fair Market Rental Value shall be determined thereafter, and if it has not been determined by the
Option Term Commencement Date, then Tenant shall continue to pay Landlord monthly installments of Base Rent in the amount applicable to the Demised Premises immediately prior to the Option Term Commencement Date until the Fair Market Rental Value is
determined. When the Fair Market Rental Value of the Demised Premises is determined, Landlord shall deliver notice thereof to Tenant, and Tenant shall pay to Landlord, within ten 

  

 - 13 - 

 
(10) days after receipt of such notice, the difference between the monthly installments of Base Rent actually paid by Tenant to Landlord subsequent to the
Option Term Commencement Date and the new monthly installments of Base Rent which are determined to have been actually owing during such period in accordance with this Section 3.2. 
  
 BY INITIALING IN THE SPACE BELOW THE PARTIES ARE AGREEING TO HAVE ANY DISPUTE REGARDING FAIR MARKET RENT FOR THE RENEWAL TERM DECIDED BY
NEUTRAL ARBITRATION AS PROVIDED BY NEVADA LAW AND ARE GIVING UP ANY RIGHTS THEY MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW, THE PARTIES ARE GIVING UP THEIR JUDICIAL RIGHTS TO DISCOVERY AND
APPEAL, UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED IN THE ARBITRATION OF DISPUTES PROVISION. IF A PARTY REFUSES TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, SUCH PARTY MAY BE COMPELLED TO ARBITRATE UNDER NEVADA LAW. THE PARTIES’
AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. 
  
 WE HAVE READ AND
UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE ARBITRATION OF DISPUTES PROVISION TO NEUTRAL ARBITRATION. 
  

									
	Initials:	 	  

	 	 	 	Initials:	 	 /s/ TMD

  
 (g) On or before the
date which is fifteen (15) months prior to the expiration of the Initial Term or the first or second Option Term, as the case may be, Tenant may deliver to Landlord a notice that it intends to exercise an Extension Option provided in Section 1.2
hereof (a “Pre-Exercise Notice”). If a Pre-Exercise Notice is timely delivered by Tenant, the provisions of this Section 3.2 regarding the determination of the Option Term Base Rent shall be implemented as if Tenant had delivered
the Extension Notice pursuant to Section 1.2. If the Option Term Base Rent has not been determined in accordance with this Section 3.2 on or before the date which is three hundred sixty (360) days prior to the end of the Initial Term or the first or
second Option Term, as the case may be, then when it is thereafter determined, Tenant shall have the option, to be exercised within ten (10) business days after notice of such determination is given to Tenant, of (i) delivering to Landlord a written
notice rescinding Tenant’s Pre-Exercise Notice (i.e. electing not to extend the Lease), in which case the Initial Term or the first or second Option Term, as the case may be, shall be extended to the date which is three hundred sixty (360) days
after the date such rescission notice is delivered, or (ii) delivering its Extension Notice, in which case such Extension Notice shall be deemed timely delivered in accordance with Section 1.2. If the Option Term Base Rent has been determined in
accordance with this Section 3.2 prior to the date which is three hundred sixty (360) days prior to the end of the Initial Term or the first or second Option Term, as the case may be, then provisions of this subsection (g) shall not apply. If the
provisions of this subsection (g) apply, and Tenant fails to deliver either a rescission notice or the Extension Notice, Tenant shall be deemed to have rescinded the Pre-Exercise Notice and not to have timely delivered the Extension Notice.

  
 3.3 Additional Obligations; Additional Rent. Except to
the extent expressly the responsibility of Landlord under this Lease, the Base Rent shall be absolutely “net” to Landlord so that this Lease shall yield to Landlord the Base Rent specified in Section 3.1 and all Impositions, insurance
premiums, utility charges, maintenance, repair and replacement expenses, all expenses relating to compliance with all present or future applicable governmental laws, rules and regulations, and all other costs, fees, charges, expenses, reimbursements
and obligations of every kind and nature whatsoever relating to the Demised Premises which may arise or become due during the term or by reason of events occurring during the term of this Lease (all such items being sometimes referred to as
“Additional 

  

 - 14 - 

 
Obligations”) shall be paid or discharged by Tenant. To the extent the following are the obligations of Tenant under this Lease, Tenant hereby
agrees to indemnify, defend and save Landlord harmless from and against such Impositions, insurance premiums, utility charges, maintenance, repair and replacement expenses, all expenses relating to compliance with all present and future governmental
laws, rules and regulations becoming effective during the Term, and all other costs, fees, charges, expenses, reimbursements and obligations referred to above. Any amounts referred to in this Lease as additional rent (including, without limitation,
the Additional Obligations) are referred to collectively as “Additional Rent.” 
  
 3.4 Delinquent Rental Payments. All payments of Base Rent and Additional Rent shall be payable without previous demand therefor and without any
right of set-off or deduction whatsoever (except as expressly provided in this Lease), and in case of nonpayment of any item of Additional Rent by Tenant when the same is due, Landlord shall have, in addition to all its other rights and remedies,
all of the rights and remedies available to Landlord under the provisions of this Lease or by law in the case of nonpayment of Base Rent. The performance and observance by Tenant of all the terms, covenants, conditions and agreements to be performed
or observed by Tenant hereunder shall be performed and observed by Tenant at Tenant’s sole cost and expense. Any installment of Base Rent or Additional Rent or any other charges payable by Tenant under the provisions hereof which shall not be
paid within five (5) business days after they are due shall, (i) be subject to a late charge of five percent (5%) of the amount due and not timely paid, and (ii) bear interest from the date when such payment was due at the lesser of (A) the default
rate of interest under Landlord’s most senior debt obligation encumbering the Demised Premises, or (B) an annual rate of twelve percent (12%) per annum, but in no event in excess of the maximum lawful rate permitted to be charged by Landlord
against Tenant. Said rate of interest is sometimes hereinafter referred to as the “Maximum Rate of Interest.” Notwithstanding the foregoing provisions of this Section 3.4, if any mortgagee under any mortgage, beneficiary under any
deed of trust, or ground lessor under any ground lease, which encumbers the Land (a “Lender”), imposes fees, charges, penalties or interest on Landlord for late payments under such instrument which fees, charges, penalties or
interest are less in amount than those described in this Section 3.4, Landlord will not impose any late payment charge or interest which is greater than the amounts charged by such Lender. 
  
 ARTICLE IV 
  
 USE OF DEMISED PREMISES 
  
 4.1 Permitted Use. Tenant intends to use the Demised Premises primarily as a corporate headquarters, research and development, assembly, light
manufacturing and distribution facility and related lawful purposes, and they shall be used for no other purpose without first securing the prior written consent of Landlord, which consent shall not be unreasonably withheld. Tenant shall not use or
occupy the same, or knowingly permit them to be used or occupied, contrary to any statute, rule, order, ordinance, requirement or regulation applicable thereto, or in any manner which would violate any certificate of occupancy affecting the same, or
which would make void or voidable any insurance then in force with respect thereto (provided Tenant has received a copy of the policy) or which would make it impossible to obtain fire or other insurance thereon required to be furnished hereunder by
Tenant, or which would cause structural injury to the improvements, or which would constitute a public or private nuisance or waste, and Tenant agrees that it will promptly, upon discovery of any such use, take all necessary steps to compel the
discontinuance of such use. 
  
 4.2 Preservation of Demised
Premises. Tenant shall not use, or permit the Demised Premises, or any portion thereof, to be used by Tenant, any third party or the public in such manner as might reasonably tend to impair Landlord’s title to the Demised Premises, or any
portion thereof, or in 

  

 - 15 - 

 
such manner as might reasonably make possible a claim or claims of adverse usage or adverse possession by the public, as such, or third persons, or of
implied dedication of the Demised Premises, or any portion thereof. Nothing contained in this Lease, and no action or inaction by Landlord, shall be deemed or construed to mean that Landlord has granted to Tenant any right, power or permission to do
any act or make any agreement that may create, or give rise to or be the foundation for any right, title, interest, lien, charge or other encumbrance upon the estate of Landlord in the Demised Premises other than as expressly set forth in this
Lease. 
  
 4.3 Hazardous Substances. 
  
 (a) Subject to Section 4.3(f), Tenant shall at all times and in all respects
comply with all federal, state and local laws, ordinances and regulations (“Hazardous Materials Laws”) relating to the industrial hygiene, environmental protection or the use, analysis, generation, manufacture, storage, presence,
disposal or transportation of any oil, flammable explosives, asbestos, urea formaldehyde, polychlorinated biphenyls, radioactive materials or waste, or other hazardous, toxic, contaminated or polluting materials, substances or wastes, including
without limitation any “hazardous substances,” “hazardous wastes,” “hazardous materials” or toxic substances” under any such laws, ordinances or regulations (collectively, “Hazardous Materials”) at
the Demised Premises. 
  
 (b) Subject to Section 4.3(f), Tenant
shall at its own expense procure (other than a certificate of occupancy), maintain in effect and comply with all conditions of any and all permits, licenses and other governmental and regulatory approvals required for Tenant’s use of the
Demised Premises, including, without limitation, discharge of (appropriately treated) materials or waste into or through any sanitary sewer system serving the Demised Premises. Tenant shall in all respects handle, treat, deal with and manage any and
all Hazardous Materials in, on, under or about the Demised Premises in complete conformity with all applicable Hazardous Materials Laws and prudent industry practices regarding the management of such Hazardous Materials. Subject to Section 4.3(f),
all reporting obligations imposed by Hazardous Materials Laws are solely the responsibility of Tenant. Upon expiration or earlier termination of this Lease and subject to Section 4.3(f), Tenant shall cause all Hazardous Waste Materials (as defined
in 22 CCR 66261.3) to be removed from the Demised Premises and transported for use, storage or disposal in accordance with and in complete compliance with all applicable Hazardous Materials Laws. Tenant shall not take any remedial action in response
to the presence of any Hazardous Materials in, on, about or under the Demised Premises or in any Improvements situated on the Land other than in the normal course of Tenant’s business operations as now contemplated in accordance with all
Hazardous Materials Laws or as necessitated by emergency considerations in accordance with all applicable Hazardous Materials Laws, nor enter into any settlement agreement, consent decree or other compromise in respect to any claims relating to any
Hazardous Materials in any way connected with the Demised Premises or the Improvements on the Land without first notifying Landlord of Tenant’s intention to do so and affording Landlord ample opportunity to appear, intervene or otherwise
appropriately assert and protect Landlord’s interest with respect thereto. In addition, at Landlord’s request, at the expiration of the term of this Lease, Tenant shall remove all tanks or fixtures which were placed on the Demised Premises
during the term of this Lease and which contain, have contained or are contaminated with Hazardous Waste Materials. 
  
 (c) Tenant shall immediately notify Landlord in writing of (i) any enforcement, cleanup, removal or other governmental or regulatory action instituted,
completed or threatened pursuant to any Hazardous Materials Laws; (ii) any claim made or threatened by any person against Landlord or the Demised Premises relating to damage, contribution, cost recovery, compensation, loss or injury resulting from
or claimed to result from any Hazardous Materials; and (iii) any non-routine reports made to any environmental agency arising out of or in connection with any Hazardous Materials in, on or about the Demised Premises or with respect to any Hazardous
Materials removed from the Demised Premises, 

  

 - 16 - 

 
including any complaints, notices, warnings, reports or asserted violations in connection therewith. Tenant shall also provide to Landlord, as promptly as
possible, and in any event within five (5) business days after Tenant first receives or sends the same, copies of all claims, reports, complaints, notices, warnings or asserted violations from any governmental agency of any Hazardous Materials Laws
relating in any way to the Demised Premises or Tenant’s use thereof. Upon written request of Landlord (to enable Landlord to defend itself from any claim or charge related to any Hazardous Materials Laws), Tenant shall promptly deliver to
Landlord notices of hazardous waste manifests reflecting the legal and proper disposal of all such Hazardous Materials removed from the Demised Premises. Subject to Section 4.3(f), all such manifests shall list the Tenant or its agent as a
responsible party and in no way shall attribute responsibility for any such Hazardous Materials to Landlord. 
  
 (d) Subject to Section 4.3(f), Tenant shall indemnify, defend (with counsel reasonably acceptable to Landlord), protect and hold Landlord and each of
Landlord’s officers, directors, partners, shareholders, affiliates, employees, agents, attorneys, successors and assigns free and harmless from and against any and all claims, liabilities, damages, costs, penalties, forfeitures, losses or
expenses (including attorneys’ fees) for death or injury to any person or damage to any property whatsoever (including water tables and atmosphere) to the extent arising or resulting in whole or in part, directly or indirectly, from the
presence or discharge of Hazardous Materials in, on, under, upon or from the Demised Premises or the Improvements located thereon or from the transportation or disposal of Hazardous Materials to or from the Demised Premises to the extent brought
onto the Demised Premises by Tenant whether knowingly or unknowingly, the standard herein being one of strict liability. For purposes of the indemnity provided herein, any act or omission of Tenant or its agents, employees, contractors or
subcontractors (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Tenant. Subject to Section 4.3(f), Tenant’s obligations hereunder shall include, without limitation, and whether foreseeable
or unforeseeable, all costs of any required or necessary repairs, clean-up or detoxification or decontamination of the Demised Premises or the Improvements, and the presence and implementation of any closure, remedial action or other required plans
in connection therewith, and shall survive the expiration of or early termination of the term of this Lease. For purposes of the indemnity provided herein, any acts or omissions of Tenant or its employees, agents, customers, sublessees, assignees,
contractors or subcontractors (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Tenant. 
  
 (e) Landlord may, at its expense, commission an environmental audit of the Demised Premises at any time after prior written notice thereof to Tenant;
provided that such environmental audit does not unreasonably interfere with Tenant’s use of the Demised Premises, or any portion thereof, and provided further that Landlord indemnifies, defends and holds harmless Tenant and its officers,
agents, employees and customers from and against any loss, liabilities or damages to Tenant’s machinery, equipment, fixtures and personal property, and all liability, loss or damage arising from an injury to the property of Tenant, or its
officers, agents, employees or customers, and any death or personal injury to any person or persons to the extent arising out of such environmental audit except for liability, loss or damage caused by Tenant’s gross negligence or willful
misconduct. However, should Tenant materially breach any of its obligations set forth in this Section 4.3 in a manner that may expose Landlord to material liability, and Landlord provides written notice to Tenant of the reasonable basis upon which
Landlord believes it has been exposed to liability, then Landlord shall have the right to require Tenant to undertake and submit to Landlord an environmental audit from an environmental company reasonably acceptable to Landlord, which audit shall
evidence Tenant’s compliance with this Section 4.3. 
  
 (f)
Landlord represents and warrants that as of the date of this Lease there are, and as of the Commencement Date there will be, no Hazardous Materials located on the Demised Premises, other than an as required for the normal operation of the Demised
Premises and in accordance with all Hazardous Materials Laws. Landlord shall indemnify, defend (with counsel reasonably acceptable to 

  

 - 17 - 

 
Tenant), protect and hold Tenant and each of Tenant’s officers, directors, partners, shareholders, affiliates, employees, agents, attorneys, successors
and assigns free and harmless from and against any and all claims, liabilities, damages, costs, penalties, forfeitures, losses or expenses (including attorneys’ fees) for death or injury to any person or damage to any property whatsoever
(including water tables and atmosphere) arising or resulting in whole or in part, directly or indirectly, from the presence of Hazardous Materials in, on, under, upon or from the Demised Premises or the Improvements located thereon prior to the
Commencement Date, or from the transportation or disposal of Hazardous Materials to or from the Demised Premises to the extent caused by Landlord whether knowingly or unknowingly, the standard being one of strict liability. 
  
 For purposes of the indemnity provided herein, any act or omission of
Landlord or its agents, employees, contractors or subcontractors (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Landlord. Subject to Section 4.3(f), Landlord’s obligations hereunder shall
include, without limitation, and whether foreseeable or unforeseeable, all costs of any required or necessary repairs, clean-up or detoxification or decontamination of the Demised Premises or the Improvements, and the presence and implementation of
any closure, remedial action or other required plans in connection therewith, and shall survive the expiration of or early termination of the term of this Lease. 
  
 (g) The obligations of Landlord and Tenant under this Section 4.3 shall survive the expiration or earlier termination of
this Lease. 
  
 ARTICLE V 
  
 PAYMENT OF TAXES, ASSESSMENTS, ETC. 
  
 5.1 Payment of Impositions. 
  
 (a) Except as provided to the contrary in this Section 5.1 below, Tenant
covenants and agrees to pay during the Term of this Lease, as Additional Rent, and before any fine, penalty, interest or cost may be added thereto for the nonpayment thereof, all real estate taxes, regular or special assessments, water rates and
charges, sewer rates and charges, including any sum or sums payable for present or future sewer or water capacity, (except as set forth in Section 2.5 above) charges for public utilities, street lighting, excise levies, licenses, permits, inspection
fees, other governmental charges and all other charges or burdens of whatsoever kind and nature (including costs, fees and expenses of complying with any restrictive covenants or similar agreements (e.g. CC&R’s, private assessment districts
or owners’ associations) to which the Land is subject as of the date of this Lease or similar agreements to which the Demised Premises are subject, incurred in the use, occupancy, ownership, operation, leasing or possession of the Demised
Premises, without particularizing by any known name or by whatever name hereafter called, and whether any of the foregoing be general or special, ordinary or extraordinary, foreseen or unforeseen (all of which are sometimes herein referred to as
“Impositions”), which at any time during the Term may have been or may be assessed or levied on the Demised Premises or any portion thereof or any appurtenance thereto, rents or income therefrom, and such easements or rights as may
now or hereafter be appurtenant or appertain to the use of the Demised Premises. Tenant shall pay the current portions of all special (or similar) assessments which during the Term of this Lease shall be laid, assessed, levied or imposed upon or
become payable or become a lien upon the Demised Premises or any portion thereof; provided, however, that if by law any special assessment is payable (without default) or, at the option of the owner, may be paid (without default) in installments
(whether or not interest shall accrue on the unpaid balance of such special assessment), Tenant may (and shall only be obligated to) pay the same, in installments as the same respectively become payable and before any fine, penalty, interest or cost
may be added thereto for the nonpayment of any such installment and the interest thereon. 
  

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 (b) Landlord shall pay all installments of special assessments (including interest accrued on the unpaid
balance) which are payable for periods prior to the Commencement Date and after the termination date of the Term of this Lease. Landlord shall deliver to Tenant the tax bills at least thirty (30) days prior to any delinquency date. Tenant shall pay
all real estate taxes, whether heretofore or hereafter levied or assessed upon the Demised Premises or any portion thereof, which are due and payable for periods during the Term of this Lease. Landlord shall pay all real estate taxes which are
payable for periods prior to the Commencement Date and after the termination date of the Term of this Lease. Provisions herein to the contrary notwithstanding, Landlord shall pay that portion of the real estate taxes and installments of special
assessments due and payable in respect to the Demised Premises during the year in which the Initial Term commences and the year in which the Term ends which the number of days in said year not within the Term of this Lease bears to 365, and Tenant
shall pay the balance of said current real estate taxes and current installments of special assessments during said years. 
  
 5.2 Tenant’s Right to Contest Impositions. Tenant shall have the right at its own expense to contest the amount or validity, in whole or in
part, of any Imposition by appropriate proceedings diligently conducted in good faith; provided, however, if the payment of such Imposition is necessary to properly appeal such Imposition, Tenant shall pay such imposition before delinquency; and,
provided further, if there is then an uncured Event of Default hereunder, Tenant shall have first deposited with Landlord cash or a certificate of deposit payable to Landlord issued by a national bank or federal savings and loan association in the
amount of the Imposition so contested and unpaid, together with all interest and penalties which may accrue in Landlord’s reasonable judgment in connection therewith, and all charges that may or might be assessed against or become a charge on
the Demised Premises or any portion thereof during the pendency of such proceedings. If there is then in an uncured Event of Default hereunder and if during the continuance of such proceedings, Landlord shall, from time to time, reasonably deem the
amount deposited, as aforesaid, insufficient, Tenant shall, upon demand of Landlord, make additional deposits of such additional sums of money or such additional certificates of deposit as Landlord may reasonably request. If Tenant is required to
make such additional deposits hereunder and Tenant fails to make same, the amount theretofore deposited may be applied by Landlord to the payment, removal and discharge of such Imposition, and the interest, fines and penalties in connection
therewith, and any costs, fees (including attorneys’ fees) and other liability (including costs incurred by Landlord) accruing in any such proceedings. Upon the termination of any such proceedings, Tenant shall pay the amount of such Imposition
or part thereof, if any, as finally determined in such proceedings, the payment of which may have been deferred during the prosecution of such proceedings, together with any costs, fees, including attorneys’ fees, interest, penalties, fines and
other liability in connection therewith, and upon such payment, if Landlord had previously received any amounts or certificates as a deposit, Landlord shall return all amounts or certificates deposited with it with respect to the contest of such
Imposition, as aforesaid, or, at the written direction of Tenant, Landlord shall make such payment out of the funds on deposit with Landlord and the balance, if any, shall be returned to Tenant. Tenant shall be entitled to the refund of any
Imposition, penalty, fine and interest thereon received by Landlord which has been paid by Tenant or which has been paid by Landlord but for which Landlord has been previously reimbursed in full by Tenant. Landlord shall not be required to join in
any proceedings referred to in this Section 5.2 unless the provisions of any law, rule or regulation at the time in effect shall require that such proceedings be brought by or in the name of Landlord, in which event Landlord shall join in such
proceedings or permit the same to be brought in Landlord’s name upon compliance with such conditions as Landlord may reasonably require. Landlord shall not ultimately be subject to any liability for the payment of any fees, including
attorneys’ fees, costs and expenses in connection with such proceedings. Tenant agrees to pay all such fees (including reasonable attorneys’ fees), costs and expenses or, on demand, to make reimbursement to Landlord for such payment for
fees reasonably incurred by Landlord in connection with such proceedings as provided above. During the time when any such certificate of deposit is on deposit with Landlord, and prior to the time when the same is returned to Tenant or applied
against the payment, removal or discharge of Impositions, as above provided, Tenant shall be entitled to receive all interest paid thereon. Cash deposits shall not bear interest. 
  

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 5.3 Levies and Other Taxes. If, at any time during the Term of this Lease, any method of taxation
shall be such that there shall be levied, assessed or imposed on Landlord, or on the Base Rent or Additional Rent, or on the Demised Premises, or any portion thereof, a capital levy, gross receipts tax, transaction privilege tax or other tax on the
rents received therefrom or a franchise tax, or an assessment, levy or charge measured by or based in whole or in part upon such rents, Tenant covenants to pay and discharge the same, it being the intention of the parties hereto that the rent to be
paid hereunder, shall be paid to Landlord absolutely net, without deduction or charge of any nature whatsoever, foreseeable or unforeseeable, ordinary or extraordinary, or of any nature, kind or description, except as in this Lease otherwise
expressly provided. Nothing in this Lease contained shall require Tenant to pay any municipal, state or federal net income, franchise, or excess profits taxes assessed against Landlord, or any municipal, state or federal capital levy, estate,
succession, inheritance or transfer taxes of Landlord, or corporation franchise taxes imposed upon any corporate owner of the fee of the Demised Premises nor shall anything in this Lease require Tenant to pay any income tax of Landlord or any tax in
the nature of income and/or franchise tax or in lieu of income tax. 
  
 5.4 Evidence of Payment. Tenant covenants to furnish Landlord, within thirty (30) days after Landlord requests the same, official receipts of the appropriate taxing authority, or other appropriate proof reasonably satisfactory to
Landlord, evidencing the payment of the same. The certificate, advice or bill of the appropriate official designated by law to make or issue the same or to receive payment of any Imposition or other tax, assessment, levy or charge may be relied upon
by Landlord as sufficient evidence that such imposition or other tax, assessment, levy, or charge is due and unpaid at the time of the making or issuance of such certificate, advice or bill. 
  
 5.5 Escrow for Taxes and Assessments. At Landlord’s written
demand after any Event of Default (as hereinafter defined) and for as long as such Event of Default is uncured, Tenant shall pay to Landlord the known or estimated yearly real estate taxes and assessments payable with respect to the Demised Premises
in monthly payments equal to one-twelfth (1/12) of the known or estimated yearly real estate taxes and assessments next payable with respect to the Demised Premises. From time to time, Landlord may re-estimate the amount of real estate taxes and
assessments, and in such event Landlord shall notify Tenant, in writing, of such re-estimate and fix future monthly installments for the remaining period prior to the next tax and assessment due date in an amount sufficient to pay the re-estimated
amount over the balance of such period after giving credit for payments made by Tenant on the previous estimate. If the total monthly payments made by Tenant pursuant to this Section 5.5 shall exceed the amount of payments necessary for said taxes
and assessments, such excess shall be credited on subsequent monthly payments of the same nature; but if the total of such monthly payments so made under this paragraph shall be insufficient to pay such taxes and assessments when due, then Tenant
shall pay to Landlord such amount as may be necessary to make up the deficiency. Payment by Tenant of real estate taxes and assessments under this Section 5.5 shall be considered as performance of such obligation under the provisions of Section 5.1
hereof. 
  
 5.6 Landlord’s Right to Contest
Impositions. In addition to the right of Tenant under Section 5.2 to contest the amount or validity of Impositions, Landlord shall also have the right, but not the obligation, to contest the amount or validity, in whole or in part, of any
Impositions not contested by Tenant, by appropriate proceedings conducted in the name of Landlord or in the name of Landlord and Tenant. If Landlord elects to contest the amount or validity, in whole or in part, of any Impositions, such contests by
Landlord shall be at Landlord’s expense; provided, however, that if the amounts payable by Tenant for Impositions are reduced (or if a proposed increase in such amounts is avoided or reduced) by reason of Landlord’s contest of Impositions,
Tenant shall reimburse Landlord for the costs reasonably incurred by Landlord in contesting such Impositions, but such reimbursements shall not be in excess of the amount saved by Tenant. 
  

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 ARTICLE VI 
  
 INSURANCE 
  
 6.1 Casualty Insurance. Tenant, at its sole cost and expense, shall obtain and continuously maintain in full force and effect during the Term of
this Lease, commencing with the Commencement Date (subject to the provisions of Section 2.11), policies of insurance covering the Demised Premises, including, without limitation, any Building constructed, installed or located on the Demised Premises
naming the Landlord as an additional insured, against (a) loss or damage by fire; (b) loss or damage from such other risks or hazards now or hereafter embraced by an “Extended Coverage Endorsement,” including, but not limited to,
windstorm, hail, explosion, vandalism, riot and civil commotion, damage from vehicles, smoke damage, water damage and debris removal; (c) loss for flood if the Demised Premises are in a designated flood or flood insurance area and if such coverage
is required by a Lender, (d) loss or damage caused by earthquake (but only if required by Landlord’s lender), subject to standard deductibles (provided, however, that Tenant shall not be required to maintain earthquake insurance if it is not
reasonably obtainable; and (e) loss or damage from such other risks or hazards of a similar or dissimilar nature which are now or may be customary to be maintained for similar properties in the Market Area and (ii) Tenant’s financial
responsibility for the premium associated with earthquake insurance shall not exceed $50,000 per year during the Initial Term or any Option Term) hereafter be customarily insured against with respect to improvements similar in construction, design,
general location, use and occupancy to the Demised Premises. If the premium associated with earthquake insurance exceeds $50,000.00 per year, Landlord shall have the option to either pay the excess premium over and above such $50,000.00 amount or
delete the requirement that Tenant obtain earthquake coverage. At all times, such insurance coverage shall be in an amount equal to one hundred percent (100%) of the then “Full Replacement Cost” of the Improvements. “Full
Replacement Cost” shall be interpreted to mean the cost of replacing the Improvements, without deduction for depreciation or wear and tear, including costs attributable to improvements or upgrades to the Improvements required by changes in
laws and regulations governing zoning, public access and accommodation, workplace conditions, public health or safety or similar matter, and it shall include to the extent reasonably obtainable a reasonable sum for architectural, engineering, legal,
administrative and supervisory fees connected with the restoration or replacement of the Improvements in the event of damage thereto or destruction thereof. If a sprinkler system shall be located in the Improvements, sprinkler leakage insurance
shall be procured and continuously maintained by Tenant at Tenant’s sole cost and expense. Any deductible, self-insured retention or similar limitation on coverage shall be submitted to Landlord for its prior written approval, which shall be
granted or withheld in Landlord’s reasonable discretion. 
  
 6.2 Public Liability Insurance. From and after the Commencement Date, Tenant, at its sole cost and expense, shall obtain and continuously maintain in full force and effect comprehensive general liability insurance against any loss,
liability or damage on, about or relating to the Demised Premises, or any portion thereof, with limits of not less than One Million Dollars ($1,000,000) in the event of injury to one person, Three Million Dollars ($3,000,000) in respect of any one
accident or occurrence, and Five Hundred Thousand Dollars $500,000) for property damage. Any such insurance obtained and maintained by Tenant shall name Landlord as an additional insured therein or shall include a “loss payee” endorsement
in favor of Landlord, and shall be obtained and maintained from and with a reputable and financially sound insurance company authorized to issue such insurance in the state in which the Demised Premises are located. Such insurance shall to the
extent reasonably obtainable specifically insure (by contractual liability endorsement) Tenant’s obligations under Section 20.3 of this Lease. 
  

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 6.3 Other Insurance. 
  
 (a) During the Term of this Lease, commencing with the Commencement Date, Tenant, at its sole cost and expense, shall obtain
and continuously maintain in full force and effect boiler and pressure vessel (including, but not limited to, pressure pipes, steam pipes and condensation return pipes) insurance, provided the Building contains a boiler or other pressure vessel or
pressure pipes. Landlord shall be named as an additional insured or loss payee in such policy or policies of insurance. 
  
 (b) During the Term of this Lease commencing with the Commencement Date, Tenant, at its sole cost and expense, shall obtain and continuously maintain, in
full force and effect, loss of use and business interruption coverage for the payment for no less than one (1) year of (i) the Base Rent and (ii) those Impositions which will continue to be payable even during a period when the Demised Premises are
not operational. 
  
 (c) During the Term of this Lease, Tenant, at
its sole cost and expense, shall obtain and continuously maintain in full force and effect such other insurance in such amounts against other insurable hazards which at the time are commonly insured against in the case of premises and/or buildings
or improvements similar in construction, design, general location, use and occupancy to the Demised Premises if required by Landlord’s construction or permanent lenders; provided, however, that this Section 6.3(c) is not intended to, and shall
not, supersede the cap on Tenant’s financial responsibility for earthquake insurance premiums specified in Section 6.1(d)(ii), above. 
  
 6.4 Additional Insurance Provisions. All policies of insurance required by this Article VI shall comply with the following requirements:

  
 (a) They shall be payable to Landlord and Tenant as their
interests appear, and, if Landlord so requests shall also be payable to any contract purchaser of the Demised Premises and/or the holder of any mortgages now or hereafter becoming a lien on the fee of the Demised Premises, or any portion thereof, as
the interest of such purchaser or holder appears pursuant to a standard named insured or mortgagee clause or as an additional insured. 
  
 (b) They shall be maintained on an “occurrences” basis. 
  

(c) They shall contain deductibles, self-insured retentions or similar limitations on coverage only if previously submitted to Landlord for its prior
written approval, which shall be granted or withheld in Landlord’s reasonable discretion, subject at all times to the requirements of Landlord’s Lender, whose prior written approval shall also be required. In any event, such deductibles,
self-insured retentions or similar limitations on coverage shall be no higher than those which are customarily maintained for such insurance (casualty or liability) in connection with facilities similar to the Demised Premises. 
  
 (d) Tenant shall not, on Tenant’s own initiative or pursuant to request
or requirement of any third party, take out separate insurance concurrent in form or contributing in the event of loss with that required in this Section, unless the requirements of subsection (a) above are satisfied. Tenant shall immediately notify
Landlord whenever any such separate insurance is taken out and shall deliver to Landlord original certificates evidencing the same. 
  
 (e) Each policy required under this Article VI shall have attached thereto (a) an endorsement that such policy shall not be cancelled and that the
coverage under such policy will not be materially changed without at least thirty (30) days prior written notice to Landlord or any mortgagee, and (b) to the extent reasonably obtainable an endorsement to the effect that the insurance as to the
interest of Landlord or any mortgagee shall not be invalidated by any act or neglect of Landlord or Tenant. 
  

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 (f) They shall be written with companies reasonably satisfactory to Landlord and licensed in the state in
which the Demised Premises are located. Such certificates of insurance shall be in a form reasonably acceptable to Landlord and shall be delivered to Landlord upon the Commencement Date and, prior to expiration of such policy, new certificates of
insurance shall be delivered to Landlord not less than twenty (20) days prior to the expiration of the then current policy term. 
  
 (g) They shall be obtained from companies duly licensed to transact business in the state of Nevada, and maintaining during the policy term a
“General Policyholders Rating” of at least “A” and financial category rating of “Class IX” in “Best’s Insurance Guide.” 
  
 6.5 Waiver of Subrogation. Landlord and Tenant hereby mutually waive any and all rights of recovery against one
another for real or personal property loss or damage occurring to the Demised Premises, or any part thereof, or any personal property therein from perils insured against under the insurance maintained hereunder for the benefit of the respective
parties, and to the extent the proceeds of such insurance are actually recovered, and each shall use commercially reasonable efforts to assure that such insurance permits waiver of liability and contains a waiver of subrogation. 
  
 6.6 Tenant’s Indemnification of Landlord. Tenant may maintain
insurance coverage upon all personal property of Tenant or the personal property of others kept, stored or maintained on the Demised Premises against loss or damage by fire, windstorm or other casualties or causes for such amount as Tenant may
desire. To the extent Tenant maintains such insurance, Tenant agrees that such policies shall, to the extent obtainable, name Landlord as an “additional insured” and contain a waiver of subrogation clause as to Landlord. 
  
 6.7 Unearned Premiums. Upon expiration or other termination of the
Term of this Lease, the unearned premiums upon any insurance policies or certificates thereof lodged with Landlord by Tenant shall, subject to the provisions of Article XIII hereof, be payable to Tenant, provided that an Event of Default does not
then exist (or if an Event of Default does then exist, any excess over the amount required to cure such default shall be so payable to Tenant). 
  
 6.8 Blanket Insurance Coverage. Nothing in this Article VI shall prevent Tenant from taking out insurance of the kind and in the amount provided
for under the preceding paragraphs of this Article VI under a blanket insurance policy or policies (and certificates thereof reasonably satisfactory to Landlord shall be delivered to Landlord) which may cover other properties owned, leased or
operated by Tenant as well as the Demised Premises; provided, however, that any such policy of blanket insurance of the kind provided for shall (a) specify therein the amounts thereof exclusively allocated to the Demised Premises (or Tenant shall
furnish Landlord and the holder of any fee mortgage with a written statement from the insurers under such policies specifying the amounts of the total insurance exclusively allocated to the Demised Premises), and (b) not contain any clause which
would result in the insured thereunder being required to carry any insurance with respect to the property covered thereby in an amount not less than any specific percentage of the Full Replacement Cost of such property in order to prevent the
insured therein named from becoming a co-insurer of any loss with the insurer under such policy; and further provided, however, that such policies of blanket insurance shall, as respects the Demised Premises, contain the various provisions required
of such an insurance policy by the foregoing provisions of this Article VI. 
  
 6.9 Landlord’s Liability Insurance Coverage. Landlord, at its sole cost and expense, shall obtain and continuously maintain in full force and effect during the Term of this Lease, commencing 
  

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 with the Commencement Date, comprehensive general liability insurance in such amounts as it shall deem reasonably
appropriate, but in no event less than amounts which are typically maintained by owners of similar properties in the Market Area and which are the subject of “triple net” leases in which the tenant undertakes the primary responsibility for
maintaining such property. 
  
 ARTICLE VII 
  
 UTILITIES 
  
 7.1 Payment of Utilities. During the Term of this Lease, Tenant shall pay, when due, all charges of every nature,
kind or description for utilities furnished to the Demised Premises or chargeable against the Demised Premises, including, without limitation, all charges for water, sewage, heat, gas, light, garbage, electricity, telephone, steam, power, or other
public or private utility services. 
  
 7.2 Additional
Charges. In the event that any charge or fee is required after the Commencement Date by the state in which the Demised Premises are located, or by any agency, subdivision or instrumentality thereof, or by any utility company furnishing services
or utilities to the Demised Premises, or by any private association or organization with jurisdiction over the Demised Premise, as a condition precedent to furnishing or continuing to furnish utilities or services to the Demised Premises, such
charge or fee shall be deemed to be a utility charge payable by Tenant. The provisions of this Section 7.2 shall include, but not be limited to, any charges or fees for future water or sewer capacity to serve the Demised Premises, any charges for
the underground installation of gas or other utilities or services subsequent to the installation thereof, and other charges relating to the extension of or change in the facilities necessary to provide the Demised Premises with adequate utility
services. In the event that Landlord has paid any such charge or fee after the Commencement Date, Tenant shall reimburse Landlord for such utility charge. 
  
 7.3 Landlord’s Responsibility for Utility Hook-Up Charges and Fees. Notwithstanding anything contained in this Article VII to the contrary,
(a) as of the Commencement Date, all utilities contemplated by the Improvements shall be hooked-up and fully operational and functional to the Demised Premises and all capacity, hookup and similar charges shall have been paid by Landlord, except to
the extent they constitute Excess Costs; and (b) if any utility or service charge or fee related to capital improvements made during the Term of this Lease, whose tax depreciable life extends beyond the termination date of this Lease, Tenant shall
only pay the pro rata portion of such charge or fee to the extent that such tax depreciable life is within the Term of this Lease. 
  
 ARTICLE VIII 
  
 REPAIRS AND MAINTENANCE OF DEMISED PREMISES 
  
 8.1 Tenant’s Responsibilities. Except to the extent specifically identified as Landlord’s responsibility in Section 8.2, below, Tenant
shall, at its own expense, keep the Demised Premises, and every part thereof, including, but not limited to, the grounds, landscaped areas, truck parking and loading and dock areas, the roof surface and roof membrane (but only as to routine and
ongoing maintenance), drainage swales, gutters, downspouts, glass, interior and exterior portions of the Building, and the plumbing, heating, air-conditioning, wiring, elevators and other mechanical systems therein, the facilities thereof and all
sidewalks, parking areas, driveways, passageways and alleys adjacent thereto and other appurtenances thereunto belonging, in good order, appearance, condition and repair (reasonable wear and tear excepted), free of obstructions, dirt, rubbish, snow
and debris, and so as to comply fully and at all times with all present and future applicable governmental laws, rules and regulations, and covenants, conditions and restrictions to which the Demised Premises are subject as of 
  

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 the Commencement Date, and consistent with other comparable properties in the Market Area. Tenant agrees to make all
replacements and repairs to the Demised Premises necessary to maintain the Demised Premises in the condition described in the preceding sentience. Tenant, at its own expense, shall also seal (paint) the exterior of the Building periodically during
the Term (including any Option Term) of this Lease in accordance with the recommendations of the manufacturer of the material used for the exterior of said Building. Tenant shall maintain regular service contracts for all of the Demised
Premises’ (i) mechanical systems (including HVAC) incorporated into the Demised Premises, (ii) roof surface and membrane, and (iii) elevator(s), and shall, upon Landlord’s request, provide Landlord copies of such contracts or any other
maintenance or service contracts maintained by Tenant with respect to the Demised Premises. Any such contract shall be terminable by Tenant (or its successors, including Landlord or a Lender) on not less than thirty (30) days notice to the
contractor or shall provide that it does not bind a Lender. All repairs, replacements and renewals shall be at least equal in quality and class to the original work. Because Tenant is undertaking the responsibility for most aspects of the ongoing
maintenance of the Demised Premises, Tenant waives any provisions of Nevada law with respect to Landlord’s obligations for tenantability of the Demised Premises and Tenant’s right to make repairs and deduct the expenses of such repairs
from Rent. When used in this Article VIII, “repairs” shall include all necessary replacements, renewals, alterations, additions and betterments. 
  
 8.2 Landlord’s Responsibilities. Landlord shall, at its own expense, keep in good order, condition and repair
the (i) foundation, (ii) slab structure, (iii) exterior walls (except for painting, which shall be Tenant’s responsibility), (iv) roof structure (excluding the roof membrane), and (v) all underground utilities (except to the extent caused by
Tenant’s own acts or omissions), and Landlord shall be responsible, at Landlord’s sole cost and expense, for the prompt and diligent repair of any latent defects in the original design, workmanship and construction of those items which
manifest themselves during the Term. 
  
 8.3 Sharing of
Expenses of Capital Items. Certain items of repair and maintenance which are Tenant’s responsibility under Section 8.1, may, under generally acceptable accounting principles consistently applied, be considered to have a reasonable useful
life which would extend beyond the end of the Term (a “Capital Item”). Landlord and Tenant shall share the expenses associated with such Capital Items, as follows: 
  
 (a) Tenant shall initially pay all expenses related to Capital Items. 
  
 (b) At any time Tenant intends to incur an expense related to a Capital Item,
Tenant shall notify Landlord, in writing, and Landlord shall approve or disapprove such expenditure, which approval shall not be unreasonably withheld or delayed. Landlord shall not be required to approve any expenditure which is not required for
the maintenance and operation of the Demised Premises. 
  
 (c) At
that time, Landlord and Tenant shall also agree on the “useful” life of the Capital Item and, shall determine a level per-year useful life allocation (the “Useful Life Allocation”) of financial responsibility for that
Capital Item. By way of example only, financial responsibility for a Capital Item which requires the expenditure of $50,000 and which has a five-year “useful” life would be assigned a $10,000 per year Useful Life Allocation. 
  
 (d) The Useful Life Allocation shall be applied to the item of expense
related to the Capital Item, until the full amount of such expense has been amortized, although Tenant shall have the responsibility for paying all expenses related to Capital Items when incurred. 
  

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 (e) If, at the end of the Term of Lease, including any Option Term, there remains any unamortized Useful
Life Allocation(s), Landlord shall, within thirty (30) days after the end of the Term, refund to Tenant, such unamortized Useful Life Allocations, in cash. 
  
 8.4 Tenant’s Waiver of Claims Against Landlord. Except as provided in Article II, Section 8.2 and Article XIII of this Lease, or as expressly
provided under any other provision hereof, Landlord shall not be required to furnish any services or facilities or to make any repairs or alterations in, about or to the Demised Premises or any improvements hereafter erected thereon. Subject to the
requirements of Article II, Section 8.2 and Article XIII of this Lease, or as expressly provided under any other provision hereof, Tenant hereby assumes the full and sole responsibility for the condition, operation, repair, replacement, maintenance
and management of the Demised Premises and all improvements hereafter erected thereon, and Tenant hereby waives any rights created by any law now or hereafter in force to make repairs to the Demised Premises or improvements hereafter erected thereon
at Landlord’s expense. 
  
 8.5 Prohibition Against
Waste. Tenant shall not do or suffer any waste, damage, disfigurement or injury to the Demised Premises, or any improvements hereafter erected thereon, or to the fixtures or equipment therein, or permit or suffer any overloading of the floors or
other use of the Improvements that would place an undue stress on the same or any portion thereof beyond that for which the same was designed. 
  
 ARTICLE IX 
  
 COMPLIANCE WITH APPLICABLE LAWS AND RESRICTIONS 
  
 9.1 Compliance with Applicable Laws and Restrictions. Subject to Landlord’s obligations under Article II, Section 8.2 and Article XIII of this
Lease, or as expressly provided under any other provision hereof, throughout the Term of this Lease, and at Tenant’s sole cost and expense (except as provided in Sections 2.7 and 8.3 above), Tenant shall promptly comply or cause compliance
with, or remove or cure any violation caused by Tenant of, any and all present and future laws, rules and regulations applicable to the Demised Premises and the appropriate departments, commissions, boards, associations and officers enforcing them,
and the orders, rules and regulations of the Board of Fire Underwriters where the Demised Premises are situated, or any other governmental body now or hereafter constituted exercising lawful or valid authority over the Demised Premises, or any
portion thereof, or exercising authority with respect to the use or manner of use of the Demised Premises, whether or not the compliance, curing or removal of any such violation, and the costs and expenses necessitated thereby, shall have been
foreseen or unforeseen, ordinary or extraordinary, and whether or not the same shall be presently within the contemplation of Landlord or Tenant or shall involve any change of governmental policy or require structural or extraordinary repairs,
alterations or additions by Tenant and irrespective of the costs thereof. Tenant shall also comply with, observe and perform all provisions and requirements of all policies of insurance at any time in force with respect to the Demised Premises and
required to be obtained and maintained under the terms of Article VI hereof, and Tenant shall comply with all development permits issued by governmental authorities issued in connection with development of the Demised Premises, copies of which shall
be supplied to Tenant by Landlord promptly after issuance. Tenant acknowledges that the Land, and thereby the Demised Premises, shall be subject to certain restrictions and conditions contained in the South Meadows Properties Planned Unit
Development Phase III Planned Unit Development Guidelines and the Covenants, Conditions and Restrictions of the South Meadows Properties Planned Unit Development Phase III (as recorded on November 2, 1995 as Document No. 1938942 in the office of the
Washoe County Recorder, State of Nevada). 
  

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 9.2 Tenant’s Obligations. Not withstanding that it may be usual and customary for Landlord to
assume responsibility and performance of any or all of the obligations set forth in this Article IX, and notwithstanding any order, rule or regulation directed to Landlord to perform, subject to the provisions of Article II, Section 8.2 and Article
XIII of this Lease, Tenant hereby assumes such obligations because, by nature of this Lease, or as expressly provided under any other provision hereof, the rents and income derived from this Lease by Landlord are “net” rentals not to be
diminished by any expense incident to the ownership, occupancy, use, leasing or possession of the Demised Premises or any portion thereof (except as expressly provided in this Lease). 
  
 9.3 Tenant’s Right to Contest Laws and Ordinances. After prior written notice to Landlord, Tenant, at its sole
cost and expense and without cost or expense to Landlord, shall have the right to contest the validity or application of any Applicable Laws or Restrictions in the name of Tenant or Landlord, or both, by appropriate legal proceedings diligently
conducted but only if compliance with the terms of any such law or ordinance pending the prosecution of any such proceeding, may legally be delayed without incurring of any material lien, charge or liability of any kind against the Demised Premises,
or any portion thereof, and without subjecting Landlord or Tenant to any material liability, civil or criminal, for failure so to comply therewith until the final determination of such proceeding; provided, however, if any lien, charge or civil
liability would be incurred by reason of any such delay, Tenant nevertheless, on the prior written consent of Landlord, which consent shall not be unreasonably withheld, may contest as aforesaid and delay as aforesaid, provided that such delay would
not subject Tenant or Landlord to criminal liability and Tenant (a) furnishes Landlord security, reasonably satisfactory to Landlord, against any loss or injury by reason of any such contest or delay, (b) prosecutes the contest with due diligence
and in good faith, and (c) agrees to indemnify, defend and hold harmless Landlord and the Demised Premises from any charge, liability or expense whatsoever. The security furnished to Landlord by Tenant shall be in the form of a cash deposit or a
Certificate of Deposit issued by a national bank or federal savings and loan association payable to Landlord. Said deposit shall be held, administered and distributed in accordance with the provisions of Section 5.2 hereof relating to the contest of
the amount or validity of any Imposition. 
  
 If necessary or
proper to permit Tenant so to contest the validity or application of any such law or ordinance, Landlord shall, at Tenant’s sole cost and expense, including reasonable attorneys’ fees incurred by Landlord, execute and deliver any
appropriate papers or other documents; provided, however, that Landlord shall not be required to execute any document or consent to any proceedings which would result in the imposition of any cost, charge, expense or penalty on Landlord or the
Demised Premises. 
  
 ARTICLE X 
  
 MECHANIC’S LIENS AND OTHER LIENS 
  
 10.1 Mechanic’s Liens. 
  
 (a) Tenant shall keep the Demised Premises free from any liens arising out
of work performed, materials furnished and obligations incurred by Tenant. Tenant covenants and agrees that any mechanic’s lien filed against the Demised Premises for work claimed to have been done for, or materials claimed to have been
furnished to, Tenant shall be discharged by Tenant, by bond or otherwise, within thirty (30) days after the filing thereof, at the sole cost and expense of Tenant. This provision does not apply to any claim or lien arising out of the original
construction of the Demised Premises by Landlord pursuant to this Lease. 
  

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 (b) Tenant shall have the right to contest with due diligence the validity or amount of any lien or
claimed lien created by Tenant if Tenant shall give to Landlord such security as Landlord may reasonably require to insure payment thereof and prevent any sale, foreclosure or forfeiture of the Demised Premises or any portion thereof by reason of
such nonpayment. On final determination of the lien or claim for lien, Tenant shall immediately pay any judgment rendered with all proper costs and charges and shall have the lien released or judgment satisfied at Tenant’s own expense, and if
Tenant shall fail to do so, Landlord may at its option, pay any such final judgment and clear the Demised Premises therefrom. If Tenant shall fail to contest with due diligence the validity or amount of any such lien or claimed lien created by
Tenant, or to give Landlord security as hereinabove provided, Landlord may, but shall not be required to, contest the validity or amount of any such lien or claimed lien or settle or compromise the same without inquiring into the validity of the
claim or the reasonableness of the amount thereof. Should any lien be filed against the Demised Premises or should any action of any character affecting the title thereto be commenced, Tenant shall give to Landlord written notice thereof as soon as
notice of such lien or action comes to the knowledge of Tenant. 
  
 (c) Should Tenant fail to discharge any such lien, Landlord may, at Landlord’s election, pay such claim or post a bond or otherwise provide security to eliminate the lien as a claim against title, and the cost thereof shall be
immediately due from Tenant as Additional Rent. Tenant shall not suffer or permit any mechanic’s lien or other lien to be filed against the Demised Premises, or any portion thereof, by reason of work, labor, skill, services, equipment or
materials supplied or claimed to have been supplied to the Demised Premises at the request of Tenant, or anyone holding the Demised Premises, or any portion thereof, through or under Tenant. 
  
 (d) All materialmen, contractors, artisans, mechanics, laborers and any other
person now or hereafter furnishing any labor, services, materials, supplies or equipment to Tenant with respect to the Demised Premises, or any portion thereof, are hereby charged with notice that they must look exclusively to Tenant to obtain
payment for the same. Notice is hereby given that Landlord shall not be liable for any labor, services, materials, supplies, skill, machinery, fixtures or equipment furnished or to be furnished to Tenant upon credit, and that no mechanic’s lien
or other lien for any such labor, services, materials, supplies, machinery, fixtures or equipment shall attach to or affect the estate or interest of Landlord in and to the Demised Premises or any portion thereof. 
  
 10.2 Landlord’s Indemnification. The provisions of Section 10.1
above shall not apply to any mechanic’s lien or other lien for labor, services, materials, supplies, machinery, fixtures or equipment furnished to the Demised Premises in the performance of Landlord’s obligations to construct the
Improvements required by the provisions of Article II hereof or in the performance of Landlord’s other obligations under this Lease, and Landlord does hereby agree to indemnify and defend Tenant against and save Tenant and the Demised Premises
and any portion thereof harmless from all losses, costs, damages, expenses, liabilities and obligations, including, without limitation, reasonable attorneys’ fees resulting from the assertion, filing, foreclosure or other legal proceedings with
respect to any such mechanic’s lien or other lien. 
  
 10.3
Removal of Liens. Except as otherwise provided for in this Article X, Tenant shall not create, permit or suffer, and shall promptly discharge and satisfy of record, any other lien, encumbrance, charge, security interest or other right or
interest which shall be or become a lien, encumbrance, charge or security interest upon the Demised Premises, or any portion thereof, or the income therefrom, or on the interest of Landlord or Tenant in the Demised Premises, or any portion thereof,
if such lien, encumbrance, charge, security interest or other right or interest shall result from the actions of Tenant or others acting on the behalf of or for Tenant (other than Landlord). 
  

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 10.4 Equipment and Trade Fixtures. Landlord expressly waives and disclaims any lien which it may
have by statute or otherwise on the equipment and trade fixtures which Tenant brings to the Demised Premises. In addition, Landlord acknowledges that Tenant may, from time to time, offer all or portions of such equipment and trade fixtures as
collateral for obligations to lenders. Landlord will promptly execute such reasonable documentation as Tenant may request in order to evidence to any such lender Landlord’s lack of any claim to such equipment and trade fixtures. 
  
 ARTICLE XI 
  
 LANDLORD’S PERFORMANCE OF TENANT’S OBLIGATIONS 
  
 In the event Tenant fails to pay or discharge any Additional Obligation, Landlord may, but shall not be obligated to, in
addition to its remedies in an Event of Default, provide a factually correct written notice of such failure, and if Tenant still fails to cure such failure within ten (10) days after Tenant’s receipt of such notice, Landlord may pay or perform
the same, and in that event Tenant shall within ten (10) days after invoice reimburse Landlord therefor (together with interest at the Maximum Rate of Interest from the date Landlord made such payment), which amount shall be deemed Additional Rent;
provided, however, that Landlord shall be entitled to pay such amount without prior notice to Tenant if Landlord reasonably believes that any further delay would expose Landlord or the Demised Premises to (i) substantial civil or criminal penalties,
(ii) a potential default under a mortgage, deed of trust or similar obligation, or (iii) lack of insurance coverage as required hereunder, or is otherwise an emergency. Nothing herein contained shall be deemed as a waiver or release of Tenant from
any obligation of Tenant contained in this Lease. 
  
 ARTICLE XII

  
 DEFAULTS OF TENANT 
  
 12.1 Events of Default. Any one or more of the following events shall
be an event of default by Tenant (“Event of Default”) under this Lease: 
  
 (a) Tenant fails to pay any Base Rent or Additional Rent or any other sum required by this Lease to be paid by Tenant, within five (5) business days after written notice to Tenant that the same is due and payable;

  
 (b) Tenant fails to perform or comply with any other term
hereof (including subsection (f), below), and such failure shall continue for more than thirty (30) days after notice thereof from Landlord, and Tenant shall not within such period commence with due diligence and dispatch the curing of such default,
or, having so commenced, shall thereafter fail or neglect to prosecute or complete with due diligence and dispatch the curing of such default; or 
  
 (c) Tenant makes a general assignment for the benefit of creditors or admits in writing its inability to pay its debts as they become due or files a
petition in bankruptcy, or is adjudicated a bankrupt or insolvent, or files a petition seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law, or
regulation, or files an answer admitting or fails to reasonably contest the material allegations of a petition filed against it in any such proceeding, or seeks or consents to or acquiesce in the appointment of any trustee, receiver or liquidator of
Tenant or any material part of its properties; or 
  
 (d) Within
ninety (90) days after the commencement of any proceeding against Tenant seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or 
  

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 similar relief under any present or future statute, law or regulation, such proceeding has not been dismissed, or if,
within ninety (90) days after the appointment without the consent or acquiescence of Tenant, of any trustee, receiver or liquidator of Tenant or of any material part of its properties, such appointment has not been vacated (provided, however, that
this Section 12.1(d) shall apply only to the extent it is enforceable under applicable law); or 
  
 (e) Tenant permits the abandonment or non-occupancy of the Demised Premises; or 
  
 (f) Tenant sublets, assigns, mortgages, pledges, transfers or otherwise encumbers or disposes of its interest in the Demised
Premises or this Lease, in whole or in part, in violation of Section 15.1 hereof. 
  
 12.2 Landlord’s Remedies. Upon the occurrence of an Event of Default, Landlord, at its option, without further notice or demand to Tenant, shall have, in addition to all other rights and remedies provided
in this Lease, at law or in equity, the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever: 
  
 (a) Terminate this Lease, in which event Tenant shall immediately surrender
the Demised Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in Base Rent or Additional Rent, enter upon and take possession of the Demised
Premises and expel or remove Tenant and any other person who may be occupying the Demised Premises or any part thereof, without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant the following:

  
 (i) The worth at the time of award of any unpaid Base Rent
and Additional Rent which has been earned at the time of such termination; plus 
  
 (ii) The worth at the time of award of the amount by which the unpaid Base Rent and Additional Rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that
Tenant proves could have been reasonably avoided; plus 
  
 (iii)
The worth at the time of award of the amount by which the unpaid Base Rent and Additional Rent for the balance of the Lease Term after the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided;
plus 
  
 (iv) Any other amount necessary to compensate Landlord
for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom; and 
  
 (v) Such other amounts in addition to or in lieu of the foregoing as may be
permitted from time to time by applicable law. 
  
 (b) If Landlord
does not elect to terminate this Lease on account of any default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover all Base Rent and
Additional Rent as they become due. 
  
 (c) The term
“Rent” as used in this Section 12.2 shall be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in subsections (i) and (ii),
above, the “worth at the time of award” shall 
  

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 be computed at the Maximum Rate of Interest. As used in subsection (iii), above, the “worth at the time of
award” shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). Nothing herein shall be deemed to relieve Landlord of its obligation to
mitigate its damages following an Event of Default. 
  
 (d)
Notwithstanding the foregoing provisions of this Section 12.2, in the event of a default by Tenant under Section 12.1(e) hereof, provided that is the sole Event of Default, Landlord’s sole remedy shall be termination of the Lease and recovery
of possession of the Demised Premises. Landlord’s election of such remedy shall not limit the enforcement of any other remedy to which Landlord is entitled as a result of any other Event of Default. 
  
 12.3 New Lease Following Termination. In the event Landlord elects to
terminate this Lease and relet the Premises, it may execute any new lease in its own name. Tenant hereunder shall have no right or authority whatsoever to collect any Base Rent, Additional Rent or other sums from such tenant. The proceeds of any
such reletting shall be applied as follows: 
  
 (a) First, to the
payment of any indebtedness other than Base Rent or Additional Rent due hereunder from Tenant to Landlord including but not limited to storage charges or brokerage commissions owing from Tenant to Landlord as the result of such reletting;

  
 (b) Second, to the payment of the costs and expenses of
reletting the Premises, including alterations and repairs which Landlord deems reasonably necessary and advisable, and reasonable attorneys’ fees incurred by Landlord in connection with the retaking of the Demised Premises and such reletting;

  
 (c) Third, to the payment of Base Rent, Additional Rent and
other charges due and unpaid hereunder; and 
  
 (d) Fourth, to the
payment of future Base Rent, Additional Charges and other damages payable by Tenant under this Lease. 
  
 12.4 Cumulative Rights; No Waiver. All rights, options and remedies of Landlord contained in this Lease shall be construed and held to be
non-exclusive and cumulative. Landlord shall have the right to pursue any or all of such remedies or any other remedy or relief which may be provided by law, whether or not stated in this Lease. No waiver of any Event of Default of Tenant hereunder
shall be implied from the acceptance by Lender of any payments due hereunder (except with respect to the amount so collected) or any omission by Landlord to take any action on account of such Event of Default if such Event of Default persists or is
repeated, and no express waiver shall affect defaults other than as specified in said waiver. 
  
 12.5 Surrender of Demised Premises. Upon any expiration or termination of this Lease, Tenant shall quit and peaceably surrender the Demised Premises and all portions thereof to Landlord, and Landlord may, upon
or at any time after any such expiration or termination and without further notice, enter upon and reenter the Demised Premises and all portions thereof and possess and repossess itself thereof by force, summary proceeding, ejectment or otherwise,
and may dispossess Tenant and remove Tenant and all other persons and property from the Demised Premises and all portions thereof and may have, hold and enjoy the Demised Premises and the right to receive all rental and other income of and from the
same. 
  
 12.6 Interest on Unpaid Amounts. If Tenant shall
commit an Event of Default, Landlord may cure the same, but shall not be required to do so, as provided in, and subject to, 
  

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 Section 11.1 above, and in exercising any such right, may employ counsel and pay necessary and incidental costs and
expenses, including reasonable attorneys’ fees. All reasonable sums so paid by Landlord, and all reasonable and necessary costs and expenses, including reasonable attorneys’ fees, in connection with the performance of any such act by
Landlord, together with interest thereon at the Maximum Rate of Interest from the date of making such expenditure by Landlord, shall be deemed Additional Rent hereunder and, except as is otherwise expressly provided herein, shall be payable to
Landlord within ten (10) days after written demand, and Tenant covenants to pay any such sum or sums, with interest as aforesaid, and Landlord shall have, in addition to any other right or remedy of Landlord, the same rights and remedies in the
event of nonpayment thereof by Tenant as in the case of default by Tenant in the payment of monthly Base Rent. Landlord shall not be limited in the proof of any damages which Landlord may claim against Tenant arising out of or by reason of
Tenant’s failure to provide and keep in force insurance as aforesaid, to the amount of the insurance premium or premiums not paid or not incurred by Tenant, and which would have been payable upon such insurance, but Landlord shall also be
entitled to recover as damages for such breach the uninsured amount of any loss (to the extent of any deficiency between the dollar limits of insurance required by the provisions of this Lease and the dollar limits of the insurance actually carried
by Tenant) and reasonable costs and expenses, including reasonable attorneys’ fees, suffered or incurred by reason thereof occurring during any period when Tenant shall have failed or neglected to provide insurance as aforesaid. 
  
 ARTICLE XIII 
  
 DESTRUCTION AND RESTORATION 
  
 13.1 Destruction and Restoration. Tenant covenants and agrees that, in case of damage to or destruction of the Improvements during the Term,
whether by fire or otherwise, Tenant shall make sufficient funds available to Landlord and, subject to Tenant providing such sufficient funds to do so, Landlord shall promptly restore, repair, replace and rebuild the same as nearly as possible to
the condition that the same were in immediately prior to such damage or destruction with such changes or alterations as may be reasonably acceptable to Landlord and Tenant or required by Applicable Land Use Laws and Restrictions then in effect.
Tenant shall immediately give Landlord written notice of such damage or destruction upon Tenant’s or any assignee’s or subtenant’s knowledge of the occurrence thereof and specify in such notice, in reasonable detail, the extent
thereof. Such restorations, repairs, replacements, rebuilding, changes and alterations, including the cost of temporary repairs for the protection of the Demised Premises, or any portion thereof, pending completion thereof are sometimes hereinafter
referred to as the “Restoration.” Landlord shall be entitled to recover reasonable “soft” costs incurred in connection with Landlord’s performance of the Restoration, including a reasonable fee competitive with others
providing similar services. The Restoration shall be carried on and completed in accordance with the provisions and conditions of Section 13.2 hereof. If the amount of the insurance proceeds recovered from the policy or policies maintained (or
required to be maintained) by Tenant, as described in Article VI of this Lease, is reasonably deemed insufficient by a qualified contractor, reasonably acceptable to Tenant and Landlord (or Landlord’s lender, as the case may be) to complete the
Restoration of such Improvements (exclusive of Tenant’s personal property and trade fixtures which shall be restored, repaired or rebuilt, at Tenant’s discretion, out of Tenant’s separate funds), except as provide for in this Section
13.1 below, Tenant shall, upon request of Landlord (or by Landlord’s lender, as the case may be), deposit with Landlord (or Landlord’s lender, if required) a cash deposit equal to the reasonable estimate of the amount necessary to complete
the Restoration of such Improvements less the amount of such insurance proceeds available. Notwithstanding the foregoing, if Landlord is prohibited from effecting the Restoration of the Demised Premises due to applicable governmental laws, rules or
regulations then in effect, Landlord shall not be required to effect such Restoration. In such an event, any insurance proceeds shall be paid to, and may be retained by, Landlord or Landlord’s lender, as the case may be, and this Lease, and all
obligations of the parties hereunder (except those which expressly survive the termination hereof) shall terminate. 
  

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 13.2 Application of Insurance Proceeds. All moneys recovered from the insurance policy or policies
maintained (or required to be maintained) by Tenant, shall be paid directly to Landlord (or held by Landlord’s lender, if required) on account of such damage or destruction. Such amounts, less the reasonable costs, if any, incurred by Landlord
in recovering such funds, shall be applied to the payment of the costs of the Restoration and shall be paid out from time-to-time as the Restoration progresses upon the written request of Tenant, accompanied by a certificate of the architect or a
qualified professional engineer in charge of the Restoration stating that as of the date of such certificate (a) the sum requested is justly due to the contractors, subcontractors, materialmen, laborers, engineers, architects, or persons, firms or
corporations furnishing or supplying work, labor, services or materials for such Restoration, and when added to all sums previously paid out does not exceed the value of the Restoration performed to the date of such certificate by all of said
parties; (b) except for the amount, if any, stated in such certificates to be due for work, labor, services or materials, there is no outstanding indebtedness known to the person signing such certificate, after due inquiry, which is then due for
work, labor, services or materials in connection with such Restoration, which, if unpaid, might become the basis of a mechanic’s lien or similar lien with respect to the Restoration or a lien upon the Demised Premises, or any portion thereof;
and (c) the costs, as estimated by the person signing such certificate, of the completion of the Restoration required to be done subsequent to the date of such certificate in order to complete the Restoration do not exceed the sum of the remaining
insurance moneys, plus the amount deposited by the parties (as applicable) after payment of the sum requested in such certificate. 
  
 If the insurance moneys and such other sums, if any, deposited with Landlord (or with Landlord’s lender) pursuant to Section 13.1 hereof, shall be
insufficient to pay the entire costs of the Restoration, Tenant agrees to pay any deficiency promptly upon demand. Upon completion of the Restoration and payment in full thereof by Tenant, Landlord shall, within a reasonable period of time, turn
over to Tenant all insurance moneys or other moneys then remaining upon the parties’ joint, good-faith determination that the Restoration has been paid for in full and the damaged or destroyed Building and other Improvements repaired, restored
or rebuilt as nearly as possible to the condition they were in immediately prior to such damage or destruction, or with such changes or alterations as may be made in conformity with Section 13.1 and Article XIX hereof. 
  
 13.3 Continuance of Tenant’s Obligations. Except as provided for
in this Section 13.3 and in Section 13.6, no destruction of or damage to the Demised Premises, or any portion thereof, by fire, casualty or otherwise shall permit Tenant to surrender this Lease or shall relieve Tenant from its liability to pay to
Landlord the Base Rent and Additional Rent payable under this Lease or from any of its other obligations under this Lease, and Tenant waives any rights now or hereafter conferred upon Tenant by present or future law or otherwise to quit or surrender
this Lease or the Demised Premises, or any portion thereof, to Landlord or to any suspension, diminution, abatement or reduction of rent on account of any such damage or destruction. 
  
 13.4 Availability of Insurance Proceeds. To the extent that any insurance moneys which would otherwise be payable and
used in the Restoration of the damaged or destroyed Improvements are paid to any mortgagee of Landlord and applied in payment of or reduction of the sum or sums secured by any such mortgage or mortgages made by Landlord on the Demised Premises,
Landlord shall make available, for the purpose of Restoration of such Improvements, an amount equal to the amount payable to its mortgagee out of such proceeds, and such sum shall be applied in the manner provided in Section 13.2 hereof. 

 

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 13.5 Completion of Restoration. The foregoing provisions of this Article XIII apply only to damage
or destruction of the Improvements by fire, casualty or other cause occurring after the Commencement Date. Any such damage or destruction occurring prior to such time shall be restored, repaired, replaced and rebuilt by Landlord. If Substantial
Completion of the Restoration of the Demised Premises has not occurred within twelve (12) months after receipt by Landlord of all the funds necessary to pay the costs of such Restoration, then Tenant shall have the right to terminate this Lease and
surrender possession of the Demised Premises to Landlord, provided that Tenant has, within thirty (30) days after the end of such twelve (12) month period, delivered to Landlord written notice of Tenant’s intention to terminate the Lease and
surrender the Demised Premises and Substantial Completion of the Restoration has not occurred within such thirty (30) day period. 
  
 13.6 Termination of Lease. 
  
 (a) For purposes of this Lease, the term “Threshold Amount” shall mean an amount equal to the product of (i) One Million Dollars
($1,000,000.00) multiplied by (ii) a fraction, the numerator of which is the number of months from the date of damage or destruction until the expiration of the Term of this Lease, and the denominator of which is eighteen (18); and the term
“Threshold Period” shall mean the product of (a) one hundred eighty (180) days multiplied by a fraction, the numerator of which is the number of months from the date of such damage or destruction until the date of expiration of the
Term of this Lease, and the denominator of which is twelve (12). 
  
 (b) If, within eighteen (18) months prior to the expiration of the Term of this Lease, the Improvements shall be destroyed or damaged to such an extent that the Restoration thereof is reasonably estimated to cost more than the Threshold
Amount to complete, Tenant and Landlord shall, as soon as reasonably possible following such event of damage or destruction, compute the amount of the insurance proceeds available from the insurance required to be maintained by Tenant under this
Lease and the amount, if any, over and above the net proceeds of such insurance which will be necessary for such Restoration, as determined by a qualified contractor, reasonably acceptable to Tenant and Landlord (or Landlord’s Lender, as the
case may be), which latter amount is hereinafter referred to as the “Excess Cost.” Within five (5) business days following the determination of the Excess Cost, Tenant shall notify Landlord, in writing, whether Tenant is willing to
pay to such Excess Cost to restore such damage or destruction for occupancy by Tenant. If Tenant notifies Landlord that it is willing to pay such Excess Cost, it shall do so in accordance with the provisions of Sections 13.1, 13.2 and 13.3 hereof.

  
 (c) If, within eighteen (18) months prior to the expiration of
the Term of this Lease, the Improvements shall be destroyed or damaged to such an extent that, in the opinion of a reasonably qualified contractor selected by Landlord and Tenant, the Restoration shall take longer than the Threshold Period to
complete, Tenant shall be entitled to notify Landlord, in writing, of such fact, which notice shall be accompanied by a detailed statement of the nature and extent of such damage or destruction and the estimated period of Restoration. 
  
 (d) If (i) Tenant elects not to pay the Excess Cost, as described under
subsection (b), above, or (ii) if the period of Restoration as estimated by the contractor selected by Landlord and Tenant exceeds the Threshold Period, then Tenant shall have the option, within thirty (30) days after Tenant’s notice to
Landlord, to surrender the Demised Premises to Landlord by a notice, in writing, addressed to Landlord, specifying such election; provided, however, if Landlord elects to pay such Excess Cost, which election shall be made within ten (10) business
days after Tenant notifies Landlord of its election not to pay the Excess Cost, then Tenant shall not have the right to terminate this Lease pursuant to subsection (i) of this subsection (d) and, provided Tenant has not elected to terminate this
Lease under subsection (ii) of this subsection (d), Landlord shall pay such Excess Cost. If Tenant terminates this Lease in accordance with this subsection (d), the applicable notice shall be accompanied by (A) Tenant’s payment of the

  

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 balance of the Base Rent and Additional Rent due for the remainder of the term of this Lease and other charges hereafter
specified in this Section 13.6, or, in the alternative, (B) reasonably satisfactory evidence (e.g. a certificate from the insurer) that the loss of use and business interruption insurance Tenant is required to maintain shall be paid by the insurer
directly to Landlord in an amount equal to the lesser of (x) if more than one (1) year of the Term remains, the Base Rent and Additional Rent provided under this Lease for no less than one (1) year, or (y) the Base Rent and Additional Rent provided
under this Lease for the remainder of the Term. 
  
 (e) In such an
event Landlord shall be entitled to the proceeds of all insurance required to be maintained by Tenant under Section 6.1 above (other than proceeds related to trade fixtures, furniture, equipment and other personal property of Tenant) and Tenant
shall execute all documents reasonably requested by Landlord to allow such proceeds to be paid to Landlord or as Landlord may otherwise direct (e.g., to Landlord’s lender). 
  
 ARTICLE XIV 
  
 CONDEMNATION 
  
 14.1 Condemnation of Entire Demised Premises. If, during the Initial Term of this Lease or any extension or renewal thereof, the entire Demised
Premises or the entire Building shall be taken as the result of the exercise of the power of eminent domain (hereinafter referred to as the “Proceedings”), this Lease and all right, title and interest of Tenant hereunder shall cease
and come to an end on the date of vesting of title pursuant to such Proceedings. 
  
 In any taking of the Demised Premises, or any portion thereof, whether or not this Lease is terminated as in this Article provided, Tenant shall not be entitled to any portion of the award for the taking of the
Demised Premises or damage to the Improvements, except as otherwise provided in Section 14.3 with respect to the restoration of the Improvements, and Tenant hereby waives any right it now has or may have under present or future law to receive any
separate award of damages for its interest in the Demised Premises or any portion thereof, except that Tenant shall have, nevertheless, the limited right to prove in the Proceedings and to receive any award which may be made for damages to or
condemnation of Tenant’s movable trade fixtures and equipment, for goodwill and for Tenant’s relocation costs in connection therewith. 
  
 14.2 Partial Condemnation/Termination of Lease. If, during the Term of this Lease an amount less than the entire Demised Premises, shall be taken
in such Proceedings, with the result that it will materially and adversely interfere with Tenant’s enjoyment and intended use (as described in Section 4.1, hereof), as reasonably determined by Tenant, Tenant may, at its option, terminate this
Lease as to the remainder of the Demised Premises. Notwithstanding the foregoing, Tenant shall not have the right to terminate this Lease pursuant to the preceding sentence unless (a) the business of Tenant conducted in the portion of the Demised
Premises taken cannot reasonably be carried on with substantially the same utility and efficiency in the remainder of the Demised Premises, and (b) Tenant (or Landlord for Tenant) cannot construct or secure on the Demised Premises substantially
similar space to the space so taken and as a substantially integrated whole with the remaining portion of the Demised Premises. Such termination as to the remainder of the Demised Premises shall be effected by notice in writing given not more than
sixty (60) days after the date of vesting of title in such Proceedings, and shall specify a date no more than sixty (60) days after the giving of such notice as the date for such termination. Upon the date specified in such notice, the Term of this
Lease, and all right, title and interest of Tenant hereunder, shall cease and come to an end. If this Lease is terminated as provided in this Section 14.2, Landlord shall be entitled to and shall receive the total award made in such Proceedings,
Tenant hereby assigning any interest in such award, damages, and compensation to Landlord, and Tenant hereby 
  

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 waiving any right Tenant now has or may have under present or future law to receive any separate award of damages for its
interest in the Demised Premises or any portion thereof or its interest in this Lease, except as otherwise provided in Section 14.1. The right of Tenant to terminate this Lease as provided in this Section 14.2, shall not cure or otherwise release
Tenant from any then existing breach of Tenant’s performance of any of the terms, covenants or conditions of this Lease on its part to be performed. In the event that Tenant elects not to terminate this Lease as to the remainder of the Demised
Premises, the rights and obligations of Landlord and Tenant shall be governed by the provisions of Section 14.3 hereof. 
  
 14.3 Partial Condemnation/Continuation of Lease. If this Lease is not terminated as provided in Section 14.2 hereof, then this Lease shall, upon
vesting of title in the Proceedings, terminate as to the parts so taken, and Tenant shall have no claim or interest in the award, damages, consequential damages and compensation, or any part thereof except as otherwise provided in Section 14.1,
Tenant hereby waiving any right Tenant now has or may have under present or future law to receive, any separate award of damages for its interest in the Demised Premises or any portion thereof or its interest in this Lease, except as otherwise
provided in Section 14.1 and except that Tenant shall have the right to apply to Landlord for reimbursement as hereinafter provided from such funds as specified in this Section 14.3. The net amount of the award (after deduction of all costs and
expenses, including attorneys’ fees) shall be held by Landlord (or Landlord’s lender) and applied as hereinafter provided. Landlord, in such case, covenants and agrees, at Landlord’s sole cost and expense promptly to restore that
portion of the Improvements on the Demised Premises not so taken to a complete architectural and mechanical unit for the use and occupancy of Tenant as provided in this Lease. In the event that the net amount of the award (after deduction of all
costs and expenses, including attorneys’ fees) that may be received by Landlord in any such Proceedings for physical damage to the Improvements as a result of such taking, and held by Landlord (or Landlord’s lender) for restoration of the
Demised Premises, is insufficient to pay all costs of such restoration work, Landlord shall pay the difference. Tenant shall not be liable for any additional sum. 
  
 14.3 Continuance of Obligations. In the event of any termination of this Lease or any part thereof as a result of any
such Proceedings, Tenant shall pay to Landlord all Base Rent, all Additional Rent and other charges payable hereunder with respect to that portion of the Demised Premises so taken in such Proceedings with respect to which this Lease shall have
terminated justly apportioned to the date of such termination. From and after the date of vesting of possession in such Proceedings, Tenant shall continue to pay the Base Rent, Additional Rent and other charges payable hereunder as in this Lease
provided to be paid by Tenant, subject to an abatement of a just and proportionate part of the Base Rent according to the extent and nature of such taking as provided for in Sections 14.3 and 14.5 hereof in respect to the Demised Premises remaining
after such taking. 
  
 14.4 Adjustment of Rent. In the
event of a partial taking of the Demised Premises under Sections 14.2 or 14.3 hereof in which case this Lease is not terminated, the Base Rent for the period from and after the date of vesting of title in such Proceedings, until the termination of
this Lease, shall be reduced to a sum equal to the product of the Base Rent provided for herein multiplied by a fraction, the numerator of which is the value of the Demised Premises after such taking and after the same shall have been restored to a
complete architectural unit, and the denominator of which is the value of the Demised Premises prior to such taking. 
  
 ARTICLE XV 
  
 ASSIGNMENT, SUBLETTING, ETC. 
  
 15.1 Restriction on
Transfer. Tenant shall not sublet the Demised Premises or any portion thereof, nor assign, mortgage, pledge, transfer or otherwise encumber or dispose of this Lease or 
  

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 any interest therein, or in any manner assign, mortgage, pledge, transfer or otherwise encumber or dispose of its
interest or estate in the Demised Premises or any portion thereof (a “Transfer”) without obtaining Landlord’s prior written consent in each and every instance. For purposes of this Lease a Transfer shall be deemed to include
(i) any sale or similar transfer of more than fifty percent (50%) of the outstanding voting securities of Tenant, or (ii) a sale of substantially all of the assets of Tenant. Landlord’s consent to a Transfer under this Section 15.1 shall not be
unreasonably withheld or delayed, provided the following conditions are complied with: 
  
 (a) Any Transfer of this Lease shall transfer to the assignee all of Tenant’s right, title and interest in this Lease and all of Tenant’s estate or interest in the Demised Premises. 
  
 (b) At the time of any Transfer and at the time Tenant requests
Landlord’s written consent thereto, this Lease must be in full force and effect without any uncured Event of Default or Incipient Default thereunder on the part of Tenant. 
  
 (c) Any such transferee shall assume, by written, recordable instrument, in form and content satisfactory to Landlord, the
due performance of all of Tenant’s obligations under this Lease from and after the time of the effective date of the assignment, and such assumption agreement shall state that the same is made by the transferee for the express benefit of
Landlord as a third party beneficiary thereof. A copy of the assignment and assumption agreement, both in form and content satisfactory to Landlord, fully executed and acknowledged by transferee, together with a certified copy of a properly executed
corporate resolution (if the transferee be a corporation) authorizing the execution and delivery of such assumption agreement, shall be sent to Landlord ten (10) days prior to the effective date of such assignment. A Transfer shall relieve Tenant
from any of Tenant’s obligations contained in this Lease and Tenant shall remain fully liable hereunder. 
  
 (d) In the case of a subletting, a copy of any sublease fully executed and acknowledged by Tenant and the sublessee shall be mailed to Landlord ten (10)
days prior to the effective date of such subletting, which sublease shall be in form and content acceptable to Landlord. Each sublease permitted under this Section 15.1 shall contain provisions to the effect that (i) such sublease is only for actual
use and occupancy by the sublessee; (ii) such sublease is subject and subordinate to all of the terms, covenants and conditions of this Lease and to all of the rights of Landlord thereunder; and (iii) in the event this Lease shall terminate before
the expiration of such sublease, the sublessee thereunder will, at Landlord’s option, attorn to Landlord and waive any rights the sublessee may have to terminate the sublease or to surrender possession thereunder as a result of the termination
of this Lease. 
  
 (e) Tenant and Landlord shall equally share any
and all compensation paid to Tenant, in whatever form, in consideration of such Transfer, including any differential between Base Rent and rent paid to Tenant by such transferee, or any assignment fee or any other amount which can be attributed to
the Transfer. 
  
 (f) Tenant agrees to pay on behalf of Landlord
any and all reasonable costs of Landlord, including reasonable attorneys’ fees paid or payable to outside counsel, occasioned by such assignment or subletting. 
  
 15.2 Transfer to Affiliates; Sale or Merger. Notwithstanding the foregoing provisions of Section 15.1, Tenant shall
be permitted to assign or sublet the Demised Premises or Tenant’s rights under this Lease, without Landlord’s prior consent, to (i) an entity in which Tenant, directly or indirectly, owns or beneficially controls more than fifty percent
(50%) of the outstanding voting interests, (ii) an entity which directly or indirectly owns or beneficially controls more than fifty percent (50%) of the outstanding voting interests of Tenant, (iii) an entity, the outstanding voting interests of
which are directly 
  

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 or indirectly owned by the same persons or entities which own or beneficially control the outstanding voting interests of
Tenant (each, a “Sister Entity”), (iv) an entity in which a Sister Entity owns or beneficially controls more than fifty percent (50%) of the outstanding voting interests, or (v) an entity deemed to have been assigned the Lease
through a sale of Tenant’s stock or assets or through merger with Tenant, provided, that in any such case Tenant shall be required to give Landlord written notice of that assignment or subletting within thirty (30) days thereafter, including
written evidence of the identity of the assignee or sublessee (actual or deemed) and its affiliation with Tenant. Landlord and Tenant shall equally share in any profits Tenant might obtain as a result of an authorized assignment or sublet of the
Demised Premises and Tenant shall remit to Landlord fifty percent (50%) of such amounts within ten (10) days following receipt by Tenant. 
  
 15.3 Restriction Against Further Assignment. Notwithstanding anything contained in this Lease to the contrary and notwithstanding any consent by
Landlord to any Transfer of Tenant’s interest in the Demised Premises or any portion thereof or to any assignment of this Lease or of Tenant’s interest or estate in the Demised Premises, except as provided in Section 15.1 above, no
sublessee shall assign its sublease nor further sublease the Demised Premises or any portion thereof, and no assignee shall further assign its interest in this Lease or its interest or estate in the Demised Premises or any portion thereof, nor
sublease the Demised Premises or any portion thereof, without Landlord’s prior written consent in each and every instance, which consent shall be granted or withheld in Landlord’s absolute discretion. 
  
 15.4 Tenant’s Failure to Comply. Tenant’s failure to comply
with all of the foregoing provisions and conditions of this Article XV shall, at Landlord’s option, render any purported assignment or subletting null and void and of no force and effect. 
  
 ARTICLE XVI 
  
 SUBORDINATION, NONDISTURBANCE, NOTICE TO MORTGAGEE AND ATTORNMENT 
  
 16.1 Subordination by Tenant. This Lease and all rights of Tenant
therein and all interest or estate of Tenant in the Demised Premises or any portion thereof shall be subject and subordinate to the lien of any mortgage, deed of trust, security instrument or other document of like nature (collectively,
“Mortgage”), which at any time after the date of this Lease may be placed upon the Demised Premises or any portion thereof, and to each and every advance made under any such Mortgage. Tenant agrees at any time hereafter, to execute
and deliver to Landlord any instruments, releases or other documents that may be reasonably required for the purpose of subjecting and subordinating this Lease to the lien of any such Mortgage. It is agreed, nevertheless, that so long as an Event of
Default does not exist, that such subordination agreement or other instrument, release or document shall not interfere with, hinder or molest Tenant’s right to quiet enjoyment under this Lease, shall not modify the terms of this Lease, nor the
right of Tenant to continue to occupy the Demised Premises and all portions thereof, and to conduct its business thereon in accordance with the covenants, conditions, provisions, terms and agreements of this Lease. The lien of any such Mortgage
shall not cover Tenant’s trade fixtures or other personal property located in or on the Demised Premises. Subject to Tenant’s obligations under this Section 16.1 and Tenant’s execution of a commercially reasonable subordination
agreement or similar instrument, Landlord shall deliver to Tenant a commercially reasonable nondisturbance agreement executed by all lenders having a lien on the Demised Premises on the Commencement Date as a condition precedent in Tenant’s
favor, or who obtain a lien on the Demised Premises thereafter, whether at the time of Landlord’s acquisition of the Land or thereafter (e.g. construction or permanent loan recordation) and from each future lender as a condition to
Tenant’s subordination or attornment hereunder. 
  

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 16.2 Landlord’s Default. In the event of any act or omission of Landlord constituting a
default by Landlord, other than Landlord’s failure to have the Improvements substantially completed on a timely basis as provided in Article II and to make the same fully available to Tenant as therein provided, Tenant shall not exercise any
remedy until Tenant has given Landlord and any mortgagee whose name and address have been previously provided to Tenant prior written notice of such act or omission and until a 30-day period of time to allow Landlord or the mortgagee to remedy such
act or omission shall have elapsed following the giving of such notice; provided, however, if such act or omission cannot with due diligence and in good faith be remedied within such 30-day period, Landlord and/or mortgagee shall be allowed such
further period of time as may be reasonably necessary provided that it shall have commenced remedying the same with due diligence and in good faith within said 30-day period. In the event any act or omission of Landlord which constitutes a
Landlord’s default hereunder results in an immediate threat of bodily harm to Tenant’s employees, agents or invitees or damage to Tenant’s property, or exposes Tenant to criminal liability, Tenant may proceed to cure the default
without prior notice to Landlord or its mortgagee; provided, however, in that event Tenant shall give written notice to Landlord and its mortgagee as soon as possible after commencement of such cure. Nothing herein contained shall be construed or
interpreted as requiring any mortgagee to remedy such act or omission. 
  
 16.3 Attornment. Subject to Section 16.1 above, if any mortgagee shall succeed to the rights of Landlord under this Lease or to ownership of the Demised Premises, whether through possession or foreclosure or the delivery of a deed to
the Demised Premises, then, upon the written request of such mortgagee so succeeding to Landlord’s rights hereunder, Tenant shall attorn to and recognize such mortgagee as Tenant’s landlord under this Lease, and shall promptly execute and
deliver any instrument that such mortgagee may reasonably request to evidence such attornment (whether before or after making of the mortgage). In the event of any other transfer of Landlord’s interest hereunder, upon the written request of the
transferee and Landlord, Tenant shall attorn to and recognize such transferee as Tenant’s landlord under this Lease and shall promptly execute and deliver any instrument that such transferee and Landlord may reasonably request to evidence such
attornment. 
  
 ARTICLE XVII 
  
 SIGNS 
  
 Tenant shall be allowed prominent Building and monument signage during the Term of this Lease, provided that such sign or
signs (a) do not cause any structural damage or other material damage to the Building; (b) comply with and do not violate applicable governmental laws, ordinances, rules or regulations; (c) comply with and do not violate any existing restrictions
affecting the Demised Premises and which are of a matter of record as of the date of this Lease; (d) are compatible with the architecture of the Building and the landscaped area adjacent thereto, and (e) the design, size and location of such signs
have been mutually approved by Landlord and Tenant, which approval shall not be unreasonably withheld or delayed. The cost of such signs shall be funded from the Tenant Improvements Allowance and shall be entirely Tenant’s separate expense,
except as provided in Section 2.9(c). 
  
 ARTICLE XVIII 

 
 FINANCIAL STATEMENTS OF TENANT 
  
 From time to time, at Landlord’s request, Tenant shall provide Landlord
with Tenant’s most recent financial statements in form and content reasonably satisfactory to Landlord and Landlord’s lenders (which, if Tenant is an entity which files periodic financial disclosures to securities regulatory authorities,
shall be those which are periodically filed with those authorities). Landlord may provide copies of those financial statements to current and prospective lenders, investors and buyers, identified in writing to Tenant, for examination and review.

  

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 Landlord shall keep all such financial statements strictly confidential and may provide copies of such
financial statements to such other parties only upon receiving in return a covenant from each recipient that such recipient shall keep the financial statements confidential except with the prior written consent of Tenant. 
  
 ARTICLE XIX 
  
 CHANGES AND ALTERATIONS 
  
 Tenant shall not have the right to make such changes or alterations, structural or otherwise, to the Building, Improvements and fixtures hereafter erected
on the Demised Premises without first complying with the following conditions: 
  
 19.1 Permits. No change or alteration shall be undertaken until Tenant shall have procured and paid for, so far as the same may be required from time to time, all municipal, state and federal permits and
authorizations of the various governmental bodies and departments having jurisdiction thereof, and Landlord agrees to join in the application for such permits or authorizations whenever such action is necessary, all at Tenant’s sole cost and
expense, provided such applications do not cause Landlord to become liable for any cost, fees or expenses. 
  
 19.2 Landlord Approval; Compliance with Plans and Specifications. Before commencing any change, alteration, restoration or construction
(hereinafter sometimes referred to as “Work”) involving in the aggregate an estimated cost of more than One Hundred Thousand Dollars ($100,000) or which, in Landlord’s reasonable judgment, would alter the mechanical, structural
or electrical components of the Demised Premises, Tenant shall obtain Landlord’s prior written consent, which consent shall not be unreasonably withheld, to (i) a licensed architect or licensed professional engineer selected and paid for by
Tenant to approve any such work (hereinafter referred to as “Alterations Architect or Engineer”), (ii) detailed plans and specifications prepared and approved in writing by said Alterations Architect or Engineer and of each
amendment and change thereto, and (iii) the general contractor who Tenant will retain to perform such Work. In addition, for any Work involving in the aggregate an estimated cost of more than One Hundred Thousand Dollars ($100,000), Tenant shall
furnish to Landlord a surety company performance bond issued by a surety company licensed to do business in the state in which the Demised Premises are located and reasonably acceptable to Landlord in an amount equal to the estimated cost of such
work guaranteeing the completion thereof within a reasonable time thereafter (1) free and clear of all mechanic’s liens or other liens, encumbrances, security interests and charges, and (2) in accordance with the plans and specifications
approved by Landlord. This Section 19.2 shall not apply to the initial installation by Tenant of its trade fixtures, furnishings or equipment provided such installation does not result in an alteration of the mechanical, structural or electrical
components of the Demised Premises not contemplated by the Plans and Specifications. 
  
 19.3 Value Maintained. Any change or alteration shall, when completed, be of such character so as not to reduce the value of the Demised Premises or the Building to which such change or alteration is made below
its value or utility to Landlord immediately before such change or alteration, nor shall such change or alteration reduce the area or cubic content of the Building to use without Landlord’s express written consent. 
  
 19.4 Compliance with Laws. All Work done in connection with any change
or alteration shall be done promptly and in a good and workmanlike manner and in compliance with all 
  

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 building and zoning laws of the place in which the Demised Premises are situated, and in compliance with all laws,
ordinances, orders, rules, regulations and requirements of all federal, state and municipal governments and appropriate department commissions, boards and officers thereof, and in accordance with the orders, rules and regulations of the Board of
Fire Underwriters where the Demised Premises are located or any other body exercising similar functions. The cost of any such change or alteration shall be paid in cash so that the Demised Premises and all portions thereof shall at all times be free
of liens for labor and materials supplied to the Demised Premises or any portion thereof. The Work or any change or alteration shall be prosecuted with reasonable dispatch, delays due to strikes, lockouts, acts of God, inability to obtain labor or
materials, governmental restrictions or similar causes beyond the control of Tenant excepted. Tenant or Tenant’s contractor or subcontractor shall obtain and maintain at its sole cost and expense during the performance of the Work workers’
compensation insurance covering all persons employed in connection with the Work and with respect to which death or injury claims could be asserted against Landlord or Tenant or against the Demised Premises or any interest therein, together with
comprehensive general liability insurance for the mutual benefit of Landlord and Tenant with limits of not less than One Million Dollars ($1,000,000.00) in the event of injury to one person, Three Million Dollars ($3,000,000.00) in respect to any
one accident or occurrence, and Five Hundred Thousand Dollars ($500,000.00) for property damage, and the fire insurance with “extended coverage” endorsement required by Section 6.1 hereof shall be supplemented with “builder’s
risk” insurance on a completed value form or other comparable coverage on the Work if the cost of such work will be in excess of One Hundred Thousand Dollars ($100,000.00). All such insurance shall be in a company or companies authorized to do
business in the state in which the Demised Premises are located and reasonably satisfactory to Landlord, and all such policies of insurance or certificates of insurance shall be delivered to Landlord endorsed “Premium Paid” by the company
or agency issuing the same, or with other evidence of payment of the premium satisfactory to Landlord. 
  
 19.5 Property of Landlord. All improvements and alterations (other than Tenant’s movable trade fixtures, furniture and equipment) made or
installed by Tenant shall, immediately upon completion or installation thereof, become the property of Landlord without payment therefor by Landlord, and shall be surrendered to Landlord on the expiration of the Term of this Lease unless and to the
extent Tenant removes the same upon termination or expiration of the Term in which event they shall remain the property of Tenant. In no event shall Tenant be obligated to remove all or any part of such improvements or alterations. 
  
 19.6 Location of Improvements. No change, alteration, restoration or
new construction shall be in, or connect the Improvements with, any property, building or other improvement located outside the boundaries of the parcel of land described in Exhibit “A” attached hereto, nor shall the same obstruct
or interfere with any existing easement. 
  
 19.7 Removal of
Improvements. As a condition to granting approval for any changes or alterations, Landlord may require Tenant, by written notice to Tenant given at or prior to the time of granting such approval, to remove any improvements, additions or
installations installed by Tenant in the Demised Premises at Tenant’s sole cost and expense at the end of the term of this Lease and repair and restore any damage caused by the installation and removal of such improvements, additions, or
installations; provided, however, the only improvements, additions or installations which Tenant shall remove shall be those specified in such notice and those Tenant elects to remove pursuant to subsection 19(e) above. Tenant shall not be obligated
to remove any improvements, additions or installations installed by Tenant which did not require Landlord’s prior approval as provided for in this Section 19.7. 
  
 19.8 Notice to Landlord. Regardless of whether Landlord’s consent is required to any change or alteration to the
Demised Premises made or to be made by Tenant, such changes or alterations 
  

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 shall not be commenced until two (2) business days notice after Landlord has received notice from Tenant stating the date
such changes or alterations are to commence so that Landlord can post and record an appropriate notice of nonresponsibility. 
  
 19.9 Reasonable Consent. All consents required of Landlord under this Article XIX shall not be unreasonably withheld by Landlord. 
  
 ARTICLE XX 
  
 MISCELLANEOUS PROVISIONS 
  
 20.1 Entry by Landlord. Tenant agrees to permit Landlord and authorized representatives of Landlord to enter upon the Demised Premises at all
reasonable times during ordinary business hours upon at least three (3) business day’s advance written notice to Tenant for the purpose of inspecting the same and making any repairs required to be made thereto by Landlord under the terms of
this Lease, or as required to be made thereto by Tenant under the terms of this Lease provided that Landlord shall have first given written notice to Tenant to make such repairs and Tenant shall have failed to make such repairs within thirty (30)
days after notice; provided, however, Tenant shall be allowed such further period of time as may be provided in Section 12.1 (b); and, provided further, that Landlord shall be allowed to enter upon the Demised Premises during an emergency. Nothing
herein contained shall imply any duty upon the part of Landlord to do any such work which, under any provision of this Lease, Tenant may be required to perform, and the performance thereof by Landlord shall not constitute a waiver of Tenant’s
default in failing to perform the same. Landlord may, during the progress of any work, keep and store upon the Demised Premises all necessary materials, tools and equipment in areas designated by Tenant. Except to the extent of Landlord’s
negligence or intentional misconduct, Landlord shall not be liable for inconvenience, annoyance, disturbance, loss of business or other damage to Tenant by reason of making such repairs or the performance of any such work in or about the Demised
Premises or on account of bringing material, supplies and equipment into, upon or through the Demised Premises during the course thereof, and the obligations of Tenant under this Lease shall not be thereby affected in any manner whatsoever. Landlord
shall use its commercially reasonable efforts to not unreasonably interfere with Tenant’s use of the Demised Premises, or any portion thereof, by reason of Landlord’s making such repairs or the performance of any such work in or about the
Demised Premises or on account of bringing materials, supplies and equipment into, upon or through the Demised Premises during the course thereof. Tenant may accompany Landlord on any inspection or entry by Landlord. 
  
 20.2 Exhibition of Demised Premises. Landlord is hereby given the
right during usual business hours upon at least three (3) business days’ advance written notice to Tenant at any time during the Term of this Lease to enter upon the Demised Premises and to exhibit the same for the purpose of mortgaging or
selling the same. During the final year of the Term, Landlord shall be entitled (i) to display on the Demised Premises in such manner as to not unreasonably interfere with Tenant’s business, signs reasonably approved as to design and location
by Tenant indicating that the Demised Premises are for rent and/or sale and suitably identifying Landlord or its agent, and (ii) upon at least two (2) business days’ advance notice to Tenant, to exhibit the Demised Premises to prospective
tenants. 
  
 20.3 Indemnification. 
  
 (a) To the fullest extent allowed by law, Tenant shall at all times
indemnify, defend and hold Landlord harmless against and from any and all claims by or on behalf of any person or persons, firm or firms, corporation or corporations, arising from Tenant’s breach of its obligations under this Lease or the
conduct or management, or from any work or things whatsoever done in or about the Demised Premises during the Term of this Lease, except to the extent of the negligence or willful misconduct of 
  

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 Landlord or its officers, agents, employees, contractors or subcontractors, or as a result of Landlord’s breach of
its obligations under this Lease. Tenant shall further indemnify, defend and hold Landlord harmless against and from any and all claims arising during the Term of this Lease from any condition of the Improvements (other than defects in construction
of the initial Improvements or other items Landlord is required to repair or maintain), except to the extent of the negligence or willful misconduct of Landlord or its officers, employees, agents, contractors or subcontractors or as a result of
Landlord’s breach of its obligations under this Lease, or arising from any act or gross negligence of Tenant, its agents, servants, employees or licenses, or arising from any accident, injury or damage whatsoever caused to any person, firm or
corporation occurring during the Term of this Lease in or about the Demised Premises, except to the extent of the negligence or willful misconduct of Landlord or its officers, employees, agents, contractors or subcontractors, or as a result of
Landlord’s breach of its obligations under this Lease, and from and against all costs, attorneys’ fees, expenses and liabilities incurred in or about any such claim or action or proceeding brought thereon; and in case any action or
proceeding be brought against Landlord by reason of any such claim, Tenant, upon notice from Landlord, covenants to defend such action or proceeding by counsel reasonably satisfactory to Landlord subject to the requirements of Tenant’s insurer.
Tenant’s obligations under this Section 20.3 shall be insured by contractual liability endorsement on Tenant’s policies of insurance required under the provisions of Section 6.2 hereof to the extent reasonably obtainable. 
  
 (b) Landlord agrees to indemnify, defend and hold Tenant harmless from any
claims brought by third parties against Tenant which arise from Landlord’s breach of its obligations under this Lease or to the extent of Landlord’s negligence or wilful misconduct or that of its officers, agents, employees, contractors or
subcontractors, and from and against all costs, attorneys’ fees, expenses and liabilities incurred in or about any such claim or action or proceeding brought thereon; and in case any action or proceeding be brought against Landlord by reason of
any such claim, Landlord, upon notice from Tenant, covenants to defend such action or proceeding by counsel reasonably satisfactory to Tenant. Landlord’s obligations under this Section 20.3 shall be insured by contractual liability endorsement
on Landlord’s policies of insurance required under the provisions of Section 6.9 hereof to the extent reasonably obtainable. 
  
 20.4 Notices. All notices, demands and requests which may be or are required to be given, demanded or requested by either party to the other shall
be in writing, and shall be sent by United States registered or certified mail, postage prepaid, by an independent overnight courier service marked for next business day delivery, or by telephonic facsimile transmission with automatic written time
and date confirmation of delivery transmitted between the hours of 9:00 a.m. and 5:00 p.m. (time zone of recipient, but only if confirmed within two (2) business days by receipt of a mailed or personally delivered copy), and addressed as follows:

  
 To Landlord: 
  
 ADI MEMEC Partners, L.P. 
 c/o The Allen Group 
 4365 Executive Drive,
Suite 850 
 San Diego, California 92122-2130 
 Attention: Mr. Steven L. Black 
 Facsimile: 619-550-1935 
  

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 To Tenant: 
  
 MEMEC, Inc. 
 9980 Huennekens St. 

San Diego, California 92121 
 Attention:
Chief Financial Officer 
 Facsimile: 619-677-3151 
  
 With a copy to: 
  
 Dennis J. Doucette, Esq. 
 Luce, Forward,
Hamilton & Scripps 
 600 West Broadway, Suite 2600 
 San Diego, California 92101 
  
 or at such other
place as a party hereto may from time to time designate by written notice thereof to the other. Notices, demands and requests which shall be served upon Landlord by Tenant, or upon Tenant by Landlord, in the manner aforesaid, shall be deemed
received three (3) days after delivery to United States mail, one (1) business day after delivery to an overnight courier service, or at the time such notice, demand or request shall be transmitted by facsimile (if confirmed as written above).

  
 20.5 Quiet Enjoyment. Landlord covenants and agrees
that Tenant, upon paying the Base Rent and Additional Rent and upon observing and keeping the covenants, agreements and conditions of this Lease on its part to be kept, observed and performed, shall lawfully and quietly hold, occupy and enjoy the
Demised Premises (subject to the provisions of this Lease) during the Term of this Lease without hindrance or molestation by Landlord or by any person or persons claiming under Landlord. 
  
 20.6 Landlord’s Continuing Obligations. The term “Landlord,” as used in this Lease, so far as
covenants or obligations on the part of Landlord are concerned, shall be limited to mean and include only the owner or owners at the time in question of the fee of the Demised Premises, and in the event of any bona fide transfer or transfers or
conveyance for fair value, the grantor shall be automatically freed and relieved from and after the date of such transfer or conveyance of all liability as respects the performance of any covenants or obligations on the part of Landlord contained in
this Lease thereafter to be performed, provided that any funds in the hands of such landlord or the then grantor at the time of such transfer, in which Tenant has an interest, shall be turned over to the grantee, and any amount then due and payable
to Tenant by Landlord or the then grantor under any provision of this Lease, shall be paid to Tenant, and further provided that the new Landlord expressly assumes in writing for the benefit of Tenant all obligations of Landlord under this Lease. The
covenants and obligations contained in this Lease on the part of Landlord shall, subject to the aforesaid, be binding on Landlord’s successors and assigns during and in respect of their respective successive periods of ownership. Nothing herein
contained shall be construed as relieving Landlord of its obligations under Article II of this Lease or releasing Landlord from any obligation to complete the cure of any breach by Landlord during the period of its ownership of the Demised Premises.

  
 20.7 Estoppel. Either Tenant or Landlord shall, without
charge at any time and from time to time, within ten (10) business days after written request by the other, certify by written instrument, duly executed, acknowledged and delivered to any mortgagee, assignee of a mortgagee, proposed mortgagee,
purchaser or proposed purchaser, or any other person dealing with Landlord, Tenant or the Demised Premises: 
  
 (a) That this Lease (and all guaranties, if any) 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); 
  

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 (b) The dates to which the Base Rent or Additional Rent have been paid in advance. 
  
 (c) Whether or not there are then existing any breaches or defaults by such
party or the other party known by such party under any of the covenants, conditions, provisions, terms or agreements of this Lease, and specifying such breach or default, if any, or any set-offs or defenses against the enforcement of any covenant,
condition, provision, term or agreement of this Lease (or of any guaranties) upon the part of Landlord or Tenant (or any guarantor), as the case may be, to be performed or complied with (and, if so, specifying the same and the steps being taken to
remedy the same); and 
  
 (d) Such other statements or
certificates as Landlord, Tenant or any mortgagee may reasonably request. 
  
 It is the intention of the parties hereto that any statement delivered pursuant to this Section 20.7 may be relied upon by any of such parties dealing with Landlord, Tenant or the Demised Premises. Failure by Tenant
to timely respond to such request shall be deemed Tenant’s certification of the accuracy of such matters. 
  
 20.8 Delivery of Corporate Documents. In the event that Tenant is a corporation or similar business entity (e.g., limited partnership, limited
liability company or limited liability partnership), Tenant shall, without charge to Landlord, at any time and from time to time within ten (10) business days after written request by Landlord, deliver to Landlord, in connection with any proposed
sale or mortgage of the Demised Premises, the following instruments and documents: 
  
 (a) Certificate of Good Standing in the state of incorporation of Tenant and in the state in which the Demised Premises are located issued by the appropriate state authority and bearing a current date; 
  
 (b) A copy of Tenant’s articles of incorporation and by-laws (or
partnership or operating agreement, as the case may be) and any amendments or modifications thereof certified by the secretary or assistant secretary (or managing partner or member, as the case may be) of Tenant; 
  
 (c) A written and certified confirmation from the secretary or assistant
secretary (or managing partner or member, as the case may be) that (i) this Lease has been duly authorized by all necessary corporate action and is a valid and binding agreement enforceable in accordance with its terms; and (ii) Tenant is a duly
organized and validly existing corporation under the laws of its state of incorporation, is duly authorized to carry on its business, and is in good standing under the laws of the state in which the Demised Premises are located, if different from
the state of incorporation. 
  
 20.9 Memorandum of Lease.
Concurrent with their execution of this Lease, the parties shall execute, acknowledge and deliver to each other, a Memorandum of Lease in the form attached hereto as Exhibit ”C” and made a part hereof. Such Memorandum of Lease shall
be recorded by Landlord concurrent with the acquisition of the Land, at Landlord’s sole cost and expense. 
  
 20.10 Severability. If any covenant, condition, provision, term or agreement of this Lease shall, to any extent, be held invalid or unenforceable,
the remaining covenants, conditions, provisions, terms and agreements of this Lease shall not be affected thereby, but each covenant, condition, provisions, term or agreement of this Lease shall be valid and in force to the fullest extent permitted
by law. 
  

 - 45 - 

 20.11 Successors and Assigns. The covenants and agreements herein contained shall bind and inure
to the benefit of Landlord, its successors and assigns, and Tenant and its permitted successors and assigns. 
  
 20.12 Captions. The caption of each article of this Lease is for convenience and reference only, and in no way defines, limits or describes the
scope or intent of such article or of this Lease. 
  
 20.13
Relationship of Parties. This Lease does not create the relationship of principal and agent, partnership, joint venture, or any association or relationship between Landlord and Tenant, the sole relationship between Landlord and Tenant being
that of landlord and tenant. 
  
 20.14 Entire Agreement.
All preliminary and contemporaneous negotiations are merged into and incorporated in this Lease. This Lease, together with the exhibits attached hereto, contains the entire agreement between the parties and shall not be modified or amended in any
manner except by any instrument in writing executed by the parties hereto. 
  
 20.15 No Merger. There shall be no merger of this Lease or of the leasehold estate created by this Lease with any other estate or interest in the Demised Premises by reason of the fact that the same person,
firm, corporation or other entity may acquire, hold or own, directly or indirectly, (a) this Lease or the leasehold interest created by this Lease or any interest therein, and (b) any such other estate or interest in the Demised Premises, or any
portion thereof. No such merger shall occur unless and until all persons, firms, corporations or other entities having an interest (including a security interest) in (1) this Lease or the leasehold estate created thereby, and (2) any such other
estate or interest in the Demised Premises, or any portion thereof, shall join in a written instrument expressly affecting such merger and shall duly record the same. 
  
 20.16 Possession and Use. Tenant acknowledges that the Demised Premises are the property of Landlord and that Tenant
has only the right to possession and use thereof upon the covenants, conditions, provisions, terms and agreements set forth in this Lease. 
  
 20.17 Surrender of Demised Premises. Subject to the other provisions of this Lease, at the expiration of the Term of this Lease, Tenant shall
surrender the Demised Premises in the same condition as they were in upon delivery of possession thereto at the Commencement Date, reasonable wear and tear, casualty and condemnation excepted, and shall surrender all keys to the Demised Premises to
Landlord at the place then fixed for the payment of Base Rent, and shall inform Landlord of all combinations on locks, safes and vaults, if any. Tenant shall at such time remove all of its property therefrom and all alterations and improvements
placed thereon by Tenant if so requested by Landlord or otherwise allowed, subject to Sections 19(e) and (g). Tenant shall repair any damage to the Demised Premises caused by such removal, and any and all such property not so removed shall, at
Landlord’s option, become the exclusive property of Landlord or be disposed of by Landlord, at Tenant’s cost and expense, without further notice to or demand upon Tenant, subject to applicable law and Sections 19(e) and (g). 
  
 All property of Tenant not removed on or before the last day of the Term of
this Lease shall be deemed abandoned in accordance with, and subject to, applicable law. 
  

 - 46 - 

 20.18 Holding Over. In the event Tenant remains in possession of the Demised Premises after
expiration of this Lease and without the execution of a new lease, it shall be deemed to be occupying the Demised Premises as a tenant from month-to-month, subject to all the provisions, conditions and obligations of this Lease insofar as the same
can be applicable to a month-to-month tenancy, except that the Base Rent shall be escalated to one hundred and twenty-five percent (125%) of the then current Base Rent for the Demised Premises for the first three (3) months of such tenancy and one
hundred fifty percent (150%) of such amount thereafter, and from and after such three (3) month period, Tenant shall indemnify, defend and hold Landlord harmless against loss or liability resulting from the delay by Tenant in so surrendering the
Demised Premises, including without limitation any claim made by any succeeding occupant founded on such delay. Tenant’s obligation to observe or perform this covenant shall survive the expiration or other termination of this Lease. 

 
 20.19 Survival. All obligations of either party (together with
interest or money obligations at the Maximum Rate of Interest) accruing prior to expiration of the Term of this Lease shall survive the expiration or other termination of this Lease. 
  
 20.20 Broker’s Commission. Tenant and Landlord represent that they have dealt only with (i) Colliers Illif Thorn
and Mr. [Illegible] and (ii) Commercial Properties of Nevada, as brokers in connection with this Lease. Landlord shall be responsible for paying the commissions owing to such brokers under separate written agreements between Landlord and such
brokers. Tenant and Landlord will indemnify, defend and hold the other harmless from and against any loss, cost or expense, including, but not limited to, reasonable attorneys’ fees and court costs, resulting from any claim for a fee or
commission by any other broker or finder resulting from their own actions. 
  
 20.21 Applicable Law. This Lease shall be governed and interpreted in accordance with the laws of the State of Nevada. 
  
 20.22 Counterparts. This Lease may be executed in one or more counterparts, each of which shall be deemed an original and all of which, when taken
together, shall constitute a single instrument. 
  
 20.23
Attorneys’ Fees. In the event of any litigation, arbitration, mediation or any other action taken by either party to this Lease to enforce any provision of this Lease, enforce any remedy available upon default under this Lease, or seek a
declaration of the rights of a party under this Lease, the prevailing party shall be entitled to recover in such action such attorneys’ fees and costs as may be reasonably incurred, including, without limitation, the costs of reasonable
investigation, preparation and professional or expert consultation, travel expenses, costs on appeal, court reporter fees and expenses, incurred by reason of such litigation, arbitration or other action. All other attorneys’ fees and cost
relating to this Agreement and the transactions described herein shall be borne by the party incurring the same. 
  

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 ARTICLE XXI 
  
 EXPANSION OF THE DEMISED PREMISES 
  
 21.1 Expansion By Landlord. Landlord agrees to furnish, at Tenant’s option (the “Expansion By Landlord Option”), all
of the material, labor and equipment reasonably necessary for the construction of up to an additional 57,600 square feet (as measured in the same manner as provided in this Lease) of Improvements added to and integrated with the Building and the
Demised Premises (i.e. part of the same Building) (the “Expansion Space”), expressly subject to the following terms and conditions: 
  
 (a) Tenant’s Notice to Proceed. Tenant may exercise the Expansion By Landlord Option by delivering a binding written notice of exercise to
Landlord (“Expansion By Landlord Notice”), so that Landlord receives the Expansion By Landlord Notice prior to the fifth (5th) anniversary of the Commencement Date. Tenant may exercise the Expansion By Landlord Option only if
this Lease is then in full force and effect and there is then existing no uncured Event of Default or Incipient Default, but Landlord shall have the right at its sole discretion to waive the non-default conditions herein; provided, however, that if
an Event of Default or Incipient Default exists at the time Tenant exercises the Expansion By Landlord Option and Landlord does not elect to waive, Landlord shall provide written notice to Tenant of the existence and nature of such Event of Default
or Incipient Default and Tenant shall be allowed an amount of time to cure such Event of Default or Incipient Default as is otherwise provided for curing defaults of that type under this Lease, and, if timely cured, Tenant’s exercise of the
Expansion By Landlord Option shall be reinstated effective as of the time of exercise. 
  
 (b) Tenant’s Financial Condition. The Expansion By Landlord Notice shall be accompanied by Tenant’s financial statement, including a Balance Sheet and a Cash Flow Statement, for Tenant’s most
recent fiscal year, including a comparison to Tenant’s prior fiscal year, and such other financial information as Landlord may reasonably request. Landlord’s obligation to proceed with the construction of the Expansion Space shall be
conditioned upon there having been no material adverse change in Tenant’s financial condition, as reasonably determined by Landlord, since the Commencement Date or during Tenant’s prior fiscal year. If Landlord elects not to proceed with
the construction of the Expansion Space pursuant to this Section 21.1(b), Landlord shall so notify Tenant, in writing, within thirty (30) days following the delivery of the Expansion By Landlord Notice in which case Tenant shall have the right to
proceed with the construction of the Expansion Space in accordance with the provisions of Section 21.2, below. 
  
 (c) Expiration of Expansion By Landlord Option; Landlord’s Right to Develop. The Expansion By Landlord Option shall expire on the fifth (5th)
anniversary of the Commencement Date if it has not been previously exercised in accordance with this Article XXI. 
  
 (d) Development of Plans and Specifications. It is the intention of Landlord and Tenant that the Expansion Space shall be substantially similar in
scope, design and construction as the Improvements. The preliminary configuration of the Expansion Space is depicted on “Exhibit B-1” which is attached hereto. The plans and specifications for the Expansion Space shall be mutually
developed by Landlord and Tenant in the same manner, and subject to the same timeframes for approval by Tenant, as the Plans and Specifications for the Improvements are to be developed in accordance with Section 2.2 hereof. 
  
 (e) Substantial Completion of Expansion Space. Subject to any delays
caused by (i) Tenant-Caused Delays, (ii) Tenant Change Orders, or (iii) events of Force Majeure, Landlord anticipates that Substantial Completion of the Expansion Space shall occur within fourteen (14) months following Tenant’s delivery of the
Expansion By Landlord Notice to Landlord. 
  
 (f) Term of
Lease. If Tenant’s Expansion By Landlord Notice is delivered to Landlord prior to the third (3rd) anniversary of the Commencement Date, then the Initial Term of this Lease shall remain unchanged. If the Expansion By Landlord Notice is
delivered to Landlord after the third (3rd) anniversary of the Commencement Date, but prior to the fifth (5th) anniversary of the Commencement Date, then the Initial Term of this Lease shall be extended to a date which is one hundred eighty months
(180) months after the Substantial Completion of the Expansion Space (the “Extended Term Date”) which shall become the end of the Initial Term for purposes of all other provisions of this Lease. 
  

 - 48 - 

 (g) Adjustment of Base Rent. If Tenant properly exercises the Expansion by Landlord Option, Base
Rent shall be adjusted as follows: 
  
 (i) If the Initial Term
is extended to the Extended Term Date, then the monthly Base Rent for the period beginning in the one hundred eighty-first (181st) month following the Commencement Date until the end of two hundred and seventeenth (217th) month shall be increased to
*** and if extended beyond the two hundred and seventeenth (217th) month the monthly Base Rent shall be increased to ***. 
  
 (ii) In addition to any increase in the Base Rent pursuant to subsection (a), above, the Base Rent shall also increase by an amount equal to the product
of (i) the total cost incurred by Landlord in the construction of the Expansion Space, including a development management fee of no more than would be paid to a development or construction management firm not affiliated with Landlord, including the
cost of all Shell Improvements and Tenant Improvements incorporated into the Expansion Space, (ii) multiplied by a factor which is equal to 500 basis points (i.e. 5%) above the applicable yield on United States Treasury securities with a term of ten
(10) years on the date the Expansion By Landlord Notice is delivered to Landlord, (iii) divided by twelve (12). 
  
 (h) Subordination of Expansion By Landlord Option. Tenant acknowledges that a Lender may require Tenant to subordinate its rights under the
Expansion By Landlord Option which is the subject of this Article XXI to the rights of any such Lender under a Deed of Trust or similar mortgage-security instrument and that, although Tenant will be required to attorn to such Lender in the event of
a foreclosure or other conveyance in lieu thereof, such Lender will not be obligated to perform Landlord’s obligations under this Article XXI and Tenant shall have no rights to enforce such obligations against such Lender. 
  
 21.2 Expansion By Tenant. 
  
 (a) If Tenant does not exercise the Expansion By Landlord Option prior to its
expiration pursuant to Section 21.1(c), above, and thereafter Tenant desires to construct the Expansion Space, Tenant shall notify Landlord of that desire by delivering a written notice to Landlord that Tenant desires to proceed with the
construction of the Expansion Space (the “Expansion By Tenant Notice”). The Expansion By Tenant Notice shall be accompanied by the same financial information required under Section 21.1(b), above. Landlord shall then have thirty
(30) days within which to deliver to Tenant a written notice (“Landlord’s Response”) of whether Landlord elects to proceed with the construction of the Expansion Space, in which case the provisions of Section 21.1, above, shall
apply to such construction. If Landlord notifies Tenant that it declines to proceed with construction of the Expansion Space, or if Landlord fails to deliver the Landlord’s Response within the thirty (30) day period, then Tenant shall be
permitted to proceed with the construction of the Expansion Space, provided that the provisions of Section 21.1(d) and Article XIX of this Lease shall apply to such construction. 
  
 (b) If Landlord declines to proceed with the construction of the Expansion Space pursuant to Section 21.1(b), above, then
Tenant shall be permitted to proceed with the construction of the Expansion Space, provided that the provisions of Section 21.1(d) and Article XIX of this Lease shall apply to such construction. 
  
 21.3 Other Provisions: Further Assurances. All other provisions of
this Lease shall apply to the Expansion Space as if it had been incorporated into the original Improvements. Landlord and Tenant agree to execute such other documents or modifications to this Lease as may be reasonably required to fully implement
the intent of this Article XXI regarding the Expansion Space, provided that no such other document or modification shall alter the provisions hereof. 

	***	Material has been omitted pursuant to a request for confidential treatment. 

  

 - 49 - 

 IN WITNESS WHEREOF, each of the parties hereto have caused this Lease to be duly executed as of the day
and year first above written. 
  

					
	 LANDLORD:

	
	 ADI-MEMEC PARTNERS, L.P.,
 a California limited partnership

		
	 By:
	 	 Allen Development, Inc.,
 a California corporation
 Its General Partner

			
	 	 	 By:
	 	  

	 	 	 	 	 Steven L. Black

	 	 	 	 	 Its: President

	
	 TENANT:

	
	 MEMEC, INC.,
 a California corporation

		
	 By:
	 	 /S/ N. SAMANIEGO

	 	 	 Name: N. Samaniego

	 	 	 Its: CFO

	
	 /s/ [ILLEGIBLE]

	 Corporate Controller

  

 - 50 - 

 Exhibit “A” 
  
 SITE PLAN OF PROPERTY 
  

 A-1 

 EXHIBIT “A” 
  
  
  
 [GRAPHIC APPEARS HERE] 
  

 Exhibit “A-1” 
  
 LEGAL DESCRIPTION OF PROPERTY 

 EXHIBIT A 
  

DESCRIPTION 
  
 All that certain lot, piece or parcel of land situated in the County of Washoe, State of Nevada, described as follows: 
  
 All that portion of Parcel C-4 of Parcel Map “C” No. 2938 for
SOUTH MEADOWS PROPERTIES LIMITED PARTNERSHIP, a Nevada limited partnership filed in the office of the Recorder for Washoe County on September 13, 1995 as File No. 1925144 of Official Records, described as follows: 

  
  
  
  
  
  
  
 [SITE PLAN GRAPHIC APPEARS HERE]

  
  
  

 - 61 - 

 Exhibit “B” 
  
 PRELIMINARY PLANS AND SPECIFICATIONS 

  
  
  
  
  
  
  
 [SITE PLAN GRAPHIC APPEARS HERE]

  
  
  

 - 63 - 

 SCHEDULE “A” 
  
 DESCRIPTION OF DEMISED PREMISES 

 OUTLINE SPECIFICATIONS 
  
 MEMEC INCORPORATED 
 Reno, NV 
  
  
 September 23, 1996 
 Revised October 2, 1996 
  
 THE ALLEN GROUP 
 4365 Executive Drive, Suite 850 
 San Diego, California 92121 

 PROJECT DATA 
  

			
	 PROJECT:
	  	Memec Corporation
		
	 LOCATION:
	  	 South Meadows - Specific Site To Be Determined
 Reno, Nevada

		
	 DATE:
	  	 September 23, 1996
 Revised October 2,
1996

  

					
	1.	  	 Construction Type
	  	VN - Tilt Up Concrete
			
	2.	  	 Number of Stories
	  	One
			
	3.	  	 Use
	  	Office/Distribution
			
	4.	  	 Use Zone
	  	Industrial
			
	5.	  	 Square Footage
	  	65,800 1st Floor
	 	  	 	  	  7,200 Mezzanine
	 	  	 	  	73,000 Total
			
	6.	  	 Estimated Site Area
	  	  4.75 Acres - Phase I
	 	  	 	  	+3.0 Acres Option Land Phase I
			
	7.	  	 Estimated Site Coverage
	  	35% - Phase I
			
	8.	  	 Parking Spaces
	  	219 Spaces (3/1000 gross)
			
	9.	  	 Trash Dumpster
	  	Provide one enclosures for three standard (4’x7’) trash bins
			
	10.	  	 Clear Height
	  	25’-0” minimum
			
	11.	  	 Panel Height
	  	32’ Minimum
			
	12.	  	 Loading Doors
	  	 (7) Dock High level 9’ X 10’ (5 loading docks, 2 trash docks)
 (2) Grade level 12’X 14’
       Dock levelers, dock locks & door seals included
for 5 doors

			
	13.	  	 Drive Aisle Widths
	  	24’ Minimum, 26’ Fire Lanes
			
	14.	  	 Fire Sprinkling
	  	Fully Fire Sprinklered to density of .45 gpm /2,000 s.f. in warehouse area and .15 gpm/2,000 s.f. density in office area or ESFR, if required
			
	15.	  	 Security Fencing
	  	540 L.F. of 6’ high chain link w/barb wire fencing is included to secure the dock and truck area.
			
	16.	  	 Electrical
	  	277/480 Volt, 3000 AMP, 3 phase, 4 wire

			
	 DESCRIPTION:
	  	The project consists of one (1) one-story building totaling 73,000 gross square feet, including 15,400 square feet of office space. All site improvements, office space, etc. shall be part of
this proposal.
		
	 SCOPE:
	  	All building and site improvements shall be complete in every respect as defined by, but not limited to, the content of the schematic drawings and outline specifications.
		
	 CODES:
	  	The building shall be Type V, non-rated, B occupancy. All construction shall conform to local and state codes and regulations in effect at the time of construction. All placement of concrete,
reinforcing steel in masonry units and/or concrete and all field weld plates and field welding shall be inspected by an independent testing laboratory.
	
	DIVISION 1    GENERAL REQUIREMENTS
		
	 	  	All work shall be in conformance with all applicable codes and regulations. Contractor shall be responsible for coordination of all work to be performed and for conformance to the contract
documents.
	
	DIVISION 2    SITEWORK
		
	Earthwork	  	Provide all grading and reshaping of existing site as required to achieve conformance with new finish grade elevations. A balanced site is assumed.
		
	Site Utilities	  	Provide all sewer, gas, water, storm drain, electrical, and telephone services as required. It is assumed that all services are provided to the property line of the selected
site.
		
	Irrigation	  	All landscaped areas to be fully irrigated and operated by a central automatic controller. Provide planter drainage to comply per minimum City of Reno design guideline
standards.
		
	Landscaping	  	Provide plant material and soil amendments per minimum City of Reno guideline standards.
		
	Concrete Paving	  	Natural color, concrete slab, 6” nominal thickness, with minimum #3 bars @ 24” o.c. each way slab reinforcing at driveway approach and trash enclosure aprons. Select fill is
excluded.
		
	Asphalt Concrete Paving	  	Asphalt concrete paving over Class II crushed aggregate base minimum thickness to be 2- 1/2” A. C. over 6” base at parking; 3” A.C. over 8” base at drives or as specified per soils report. Provide sand seal finish.
		
	Curb & Mow Strips	  	All curb and gutters shall be constructed of concrete in accordance to City of Reno Standards.
		
	Fencing	  	Fence entire loading area w/6’ high metal galvanized chain link and 2 strands of barb wire. Include one (1) motor-operated gate.

			
	DIVISION 3    CONCRETE
		
	 Foundations
	  	Continuous grade beam and pad footings of reinforced concrete below grade for columns and concrete panels as shown on drawings. Verify with soils report.
		
	 First Floor
	  	Slab-on-grade minimum 6” thick, 4000 psi concrete slab on grade, reinforced with #3 bars at 16” o.c., over 2” sand. Include visqueen under slab areas. Finish to be hard toweled
suitable to accept floor wax.
		
	 Second Floor Slab
	  	Lightweight concrete topping at second floor mezzanine.
		
	 Walls
	  	Natural Color, reinforced concrete tilt-up panels with 3/4” deep recesses and reveals. Thickness as determined by the Structural Engineer. All exterior surfaces to be
painted.
		
	 Trash Enclosures
	  	6’-0” high tilt-up concrete with finish to match building. Enclosure will provide for a total of 3 trash bins located per plan.
	
	DIVISION 4    MASONRY
		
	 	  	 Not Applicable

	
	DIVISION 5    METALS
		
	Columns	  	7” diameter steel columns, (bay spacing T.B.D.) base plates and connections as determined by the Structural Engineer.
		
	Miscellaneous Metals	  	Concrete panels embeds, steel guards and metal pipe crash posts, steel roof access ladder and trash enclosures hardware will be provided under this section of work. (See Division 7 for Roof
Access Hatch).
		
	Pre-formed Metal Siding	  	Provide 22 gauge galvanized steel siding with ribbed pattern P-13 by Curoco or equal for trash enclosure gate covering.
	
	DIVISION 6    WOOD AND PLASTICS
		
	Glue Laminated Lumber and Wood Trusses	  	All major roof framing to consist of members as determined by the Structural Engineer. Size and length as required. All lumber to comply with regulations as specified in rough carpentry
regulations below. Assume no additional roof loads for Mechanical.
		
	Roof	  	1/2” nominal plywood over 2”x6”s at 24” o.c. panelized roof system.
		
	Rough Carpentry	  	All soffit-framing and bracing shall conform to applicable requirements for lumber grading as specified in West Coast Lumber Inspection Bureau Grading and Dressing Rule No. 16, the Western Wood
Products Association, and the American Plywood Association. In addition to complying with applicable codes and regulation, comply with pertinent recommendations contained in 1994 edition UBC Chapter 25.
		
	Finish Carpentry	  	Provide plastic laminate countertops and casework for 1 lunchroom. All finish carpentry shall conform to the applicable requirements for “Custom Grade” of the Manual of Millwork of the
Woodwork Institute of California, the West Coast

			
	 	  	Lumberman’s Association Grading and Dressing Rules No. 16 the Western Wood Products Association, The National Hardwood Lumber Association and The American Plywood
Association.
	
	DIVISION 7    MOISTURE AND THERMAL PROTECTION
		
	Membrane Roofing	  	All roofs shall have a four-ply fiberglass built-up roofing system with capsheet (i.e., Manville specification 4 GNC). No Bond.
		
	 Building/Sounding
 & Thermal
 Insulation
	  	Provide fiberglass or mineral wool batt insulation with vapor barrier one side at spandrel glass. Insulation to have R-19 value above office ceilings and R-11 value at all conference rooms,
training rooms and office walls. Full thick batts at all toilet rooms. R-30 white vinyl faced batts at warehouse ceiling.
		
	Roof Drainage	  	Provide internal roof and overflow drains. Roof drains to connect to below grade storm drain where accessible or daylight at face of curb or building wall in loading areas. Minimum roof slope
to be 1/4” per foot.
		
	Sealants	  	Utilize silicone base sealant at all glazing conditions. Concrete panel joints are to receive polyurethane sealant with 1” polyurethane backer rod. Sealants used in walking surfaces
shall be polyurethane type. Colors to be selected by Architect/Tenant.
		
	Sheet Metal	  	Provide all sheet metal work for the building, complete; including reglets, and counter flashing for roofing. Materials to be galvanized sheet metal, 24 gauge minimum
thickness.
		
	Metal Roofing	  	Not Applicable.
		
	Roof Accessories	  	Provide roof hatch by “Bilco” Type S-20 (2’-6” x 3’-0”). Locate in electrical room.
		
	Skylights	  	Not Included.
	
	DIVISION 8    DOORS AND WINDOWS
		
	Interior Doors	  	3’-0” X 7’-0” X 1 3/4” “Legacy” solid core pre-finish doors with “Timely” frames or approved equal. All fire rated doors and frames to comply with
UBC Sec. 4306.
		
	Entry Doors	  	3’-0” X 8’-10” X 1 3/4” narrow
stile aluminum and glass system. Frame finish to be as specified in “Aluminum Framing” below.
		
	Steel Roll-up Doors	  	Provide eight (8) 9’-0” X 10’-0” and two (2) 12’-0” x 14’-0” 20-gauge manually operated metal roll-up door. Prime and paint (see Division 9,
painting).
		
	Hardware	  	All builder’s hardware shall be 626 finish (satin chrome plated). Lock and latch sets shall be equal to Schlage Series ‘S’ with lever handle design. All fire rated doors and
storefront entry doors shall be equipped with closures. Fire rated corridor doors to be equipped with magnetic hold-open devices. All hardware shall meet State Title 24 requirements for handicapped accessibility.

			
	Aluminum	  	All extruded aluminum sections shall be 2” x 4-1/2” off-set flush glazed with captured horizontal and vertical mullions.
		
	Framing System	  	Interior finish to be black silicone polyester powder coat. Exterior color finish to be factory applied, oven baked. Color to be selected by Architect/Tenant.
		
	Glass & Glazing	  	Glass to be provided as follows:
		
	 	  	 Curtain/Window Wall Glass: 1/4” High Performance Green.
 Spandrel Glass: 1/4” High Performance Green with opacifier, if required.
 Glass quantity not to exceed 3,900 sq.ft.

	
	DIVISION 9    FINISHES - Part of Tenant Improvement Allowance
		
	Carpeting	  	Provide carpeting in offices, conference rooms, open office and corridors as part of Tenant Improvement Allowance. Install 4” rubber base.
		
	Vinyl Flooring	  	Vinyl composition tile in lunch room to be 1/8” thick 12” X 12” squares by Armstrong Excelon Series. 4” rubber base at all areas. Provide sheet vinyl flooring in toilet
rooms.
		
	Painting	  	All portions of exterior concrete walls as indicated on the drawings, interior gypsum drywall, exposed steel surfaces, metal doors and frames to receive paint: 2 coats at exterior, 2 coats
Lo-Glo at interior face of warehouse space as part of T.I.
		
	 Metal Framing &
 Furring
	  	Steel studs shall be 16, 20 and 25 gauge as indicated on drawings or required. Drywall furring channels shall be 25 gauge “hat” sections. Backing plates shall be 1/8” steel of
proper size to accommodate fastenings and shall be welded to 20 gauge steel studs. See drawings for specific size and locations.
		
	Gypsum & Drywall	  	Provide gypsum wallboard at designated locations shown. Board thickness to be 1/2” at vertical and 1/2” at horizontal surface applications. In areas requiring fire ratings, wall board
shall be 5/8” “Type X”. In areas subject to moisture, use water resistant (WR) gypsum board. Toilet rooms and lockers to receive gypsum board ceilings.
		
	 Suspended
 Acoustical
 Ceilings
	  	Provide 2”x4” suspended metal ceiling grid (15/16”) with Armstrong “Minaboard” series tiles in all office areas.
	
	DIVISION 10    SPECIALTIES - Part of Tenant Improvement Allowance
		
	Toilet Accessories	  	Provide stainless steel accessories of the following types: toilet paper dispensers; toilet seat cover dispensers; paper towel dispensers and disposals; soap dispensers; mirrors; by McKinney or
equal.
		
	Signage	  	Provide all site and building signage necessary for proper identification of handicapped parking areas, fire lanes and building address. Interior signage excluded.

  

			
	 Monument
 Signage
	  	Not included.
		
	Fire Extinguishers	  	Provide as required by code.
	
	DIVISION 11    EQUIPMENT
		
	Locking Dock Equipment	  	 Seven (7) dock high level 9’ x 10’ (5 loading docks, 2 trash docks)
 Two (2) grade level 12’ x 14’
 Dock levelers, dock locks & door seals included for 5
doors.

	
	DIVISION 12    FURNISHINGS
		
	Window coverings	  	None provided.
		
	Furnishings	  	All interior and exterior desks, tables, chairs, whiteboards, etc. and all other F, F & E to be provided by the Tenant.
	
	DIVISION 13    SPECIAL CONSTRUCTION
		
	 	  	Not Applicable
	
	DIVISION 15    MECHANICAL

  

					
	Shell Plumbing      	  	Provide water stubbed to building and sewer laterals extended below floor slab to proposed plumbing locations as a part of the Shell building.
		
	T. I. Plumbing	  	Provide all fixtures, trim, piping and accessories for the following plumbing fixtures as a part of the Tenant Improvements:
			
	 	  	5 Water closets:	  	floor mounted, flush valve type.
	 	  	2 Urinals:	  	wall mounted, vitreous china.
	 	  	4 Lavatories:	  	counter mounted type, vitreous china self rimming.
	 	  	1 Bar Sinks:	  	recessed counter type, stainless steel.
	 	  	1 Drinking Fountain:	  	hi-low recessed wall-mounted stainless steel refrigerated.
	 	  	1 Janitor Sinks:	  	floor mounted, porcelain type.
	 	  	Water Heaters:	  	electric instantaneous.
		
	Fire Protection System	  	Provide on-site hydrants as required by local jurisdictions. The building facility to be fire sprinklered with a density of .45 GPM over the most remote 12,000 square feet of area
in the warehouse areas and .15 GPM over 2,000 square feet in the office area.
		
	Gas Service	  	None provided.

					
	 T.I. Heating,
 Ventilating & Air
Conditioning
	  	Description of System: The system design shall include roof-top mounted packaged heat pumps/cooling units with associated valves, pipes and fittings. Capacity and number of units as
required for good zoning design.
		
	 	  	The following items shall be included in the Tenant Improvement contract:
			
	 	  	A.	  	Roof-top mounted package heat pump units.
			
	 	  	B.	  	Duct Distribution System: The sheet metal ducts will all be designed and installed in accordance with A.S.H.R.A.E. and S.M.A.C.N.A. recommendations. The supply diffusers will be of a modular
ceiling lay-in type and be laid out on the basis of a maximum 38 DB noise rating.
			
	 	  	C.	  	Adequate capacity shall be provided to maintain 72°F ±4° in the warehouse while maintaining relative humidity between 30% and 60%.
			
	 	  	D.	  	Controls: The controls will be electronic type and give individual zone control. Exhaust System: Provide all toilet rooms with exhaust systems necessary to meet code requirements. The electrical
contractor shall provide all starters, connections and live voltage wiring and conduit. All work shall be done in accordance with all required codes and ordinances.

  
 DIVISION
16    ELECTRICAL 
  

			
	Main Service	  	Main service to building to be 277/480 volt, 3 phase 4 wire, 3000 amp. located within an electric room as a part of the Shelf Building.
		
	 Building Power
 and Lighting
	  	Electrical work shall include a complete service and distribution system including metering facilities, conduit, conductors, main switch board, sub-panels, branch circuits, J-boxes, lighting
fixtures, wall light switches, power receptacles, etc.
		
	Power for Equipment	  	Power wiring and connection to air conditioning equipment as well as control wiring and control devices shall be provided. (Refer to Division 15 above).
		
	Telephone & Data Communication	  	Provide one (1) J-box complete with conduit and pull string extending above ceiling will be provided at each office and conference rooms for telephone/Data receptacles. All telephone and data
communication cabling to be provided by the Tenant.
		
	Installation	  	All electrical work to be in accordance with applicable codes. All necessary outlets, conduit, wiring, trenching and concrete encasing shall be provided as required.
		
	Interior Lighting	  	Part of Tenant Improvements - Fluorescent Lighting (office areas): Provide 2’ X 4’ recessed fixtures with prismatic lens in suspended ceilings. Provide 1’ X 4” surface
mounted fixtures at toilet rooms, electrical and telephone rooms.
		
	 Interior
 Warehouse
 Lighting
	  	Part of Tenant Improvements - Metal Halide down lights.

			
	Security System	  	Tenant to provide all necessary devices, conduit, wiring, access door hardware, etc. for installation, operation and monitoring of a security system.
		
	Exterior Lighting	  	Provide high pressure sodium pole mounted light fixtures on 24” diameter concrete bases as required throughout surface parking areas as needed to provide one foot candle average
illumination.
		
	 	  	Provide uplight/downlight fixtures at walkways and landscape areas adjacent to entries.

  
 END OF OUTLINE
SPECIFICATIONS 

 Exhibit “B-1” 
  
 EXPANSION SPACE SITE PLAN 

  
  
 [GRAPHIC APPEARS HERE] 

 Exhibit “C” 
  
 MEMORANDUM OF LEASE 
  

			
	 RECORDING REQUESTED BY:
	 	 )

	 AND WHEN RECORDED RETURN TO:
	 	 )

	 	 	 )

	 David L. Dick, Esq.
	 	 )

	 Barnhorst, Schreiner & Goonan
	 	 )

	 550 West “C’ Street, Suite 1350
	 	 )

	 San Diego, California 92101
	 	 )

	 	 	 )

 (Space Above for Recorder’s Use Only)

  
  
 MEMORANDUM OF LEASE 
  
 1. This
Memorandum of Lease is made as of the              day of March, 1997, by and between ADI MEMEC PARTNERS, L.P., a California limited partnership (“Landlord”), and
MEMEC, INC., a California corporation (“Tenant”). By this Memorandum, for good and adequate consideration, Landlord does hereby lease to Tenant and Tenant does hereby rent from Landlord that certain real property depicted on
Schedule “A” attached hereto as the Demised Premises, which real property is a portion of a larger parcel of real property situated in the City of Reno, Washoe County, State of Nevada. Upon creation of a separate legal parcel as
contemplated by the first recital of the Lease, the parties shall execute an Amended and Restated Memorandum of Lease to reflect the new legal description. 
  
 2. The terms, conditions, covenants and agreements governing the leasing of the Demised Premises from Landlord to Tenant are set forth at length in that
certain Lease (the “Lease”) between Landlord and Tenant dated as of the same date as this Memorandum. All of the terms, conditions, covenants and agreements in the Lease are incorporated into this Memorandum with the same force and
effect as if they were fully recited in this document. 
  
 3. The
term of the Lease shall commence upon the substantial completion of certain improvements to be constructed by Landlord at the Demised Premises, and shall terminate fifteen (15) years thereafter, unless sooner terminated or extended as provided in
the Lease. Tenant has three (3) options to extend the term of the Lease for consecutive five (5) year periods. 
  
 4. In the event of inconsistency between the terms of this Memorandum or the Lease, the terms of the Lease shall control. 
  

 - 1 - 

 IN WITNESS WHEREOF, the parties have executed this Memorandum of Lease as of the date first above written. 
  

					
	 LANDLORD:

	
	 ADI MEMEC PARTNERS, L.P.,
 a California limited partnership

		
	 By:
	 	 Allen Development, Inc.,
 a California corporation
 Its General Partner

			
	 	 	 By:
	 	  

	 	 	 	 	 Steven L. Black

	 	 	 	 	 Its: President

  

					
	 TENANT:

	
	 MEMEC, INC.,
 a California corporation

		
	 By:
	 	 /s/ N. SAMENIEGO

	 	 	 
	 	 	 Its: CFO

		
	 	 	 /s/    [ILLEGIBLE]

	 	 	 Corporate Controller

  

 - 2 -

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