Document:

exv10w6

 

Exhibit 10.6

LEASE

BY AND BETWEEN

SHORELINE PARK, LLC,

a Delaware limited liability company

as Landlord

and

CONCENTRIC MEDICAL, INC.

A Delaware corporation

as Tenant

For Premises located at

1380 Shorebird Way, Mountain View, California

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SUMMARY OF BASIC LEASE TERMS

	 	 	1	 
	 
	 	 	 	 
	ARTICLE 1 DEFINITIONS

	 	 	3	 
	 
	 	 	 	 
	ARTICLE 2 DEMISE, CONSTRUCTION, AND ACCEPTANCE

	 	 	5	 
	 
	 	 	 	 
	ARTICLE 3 RENT

	 	 	7	 
	 
	 	 	 	 
	ARTICLE 4 USE OF PREMISES

	 	 	10	 
	 
	 	 	 	 
	ARTICLE 5 TRADE FIXTURES AND ALTERATIONS

	 	 	12	 
	 
	 	 	 	 
	ARTICLE 6 REPAIR AND MAINTENANCE

	 	 	14	 
	 
	 	 	 	 
	ARTICLE 7 WASTE DISPOSAL AND UTILITIES

	 	 	16	 
	 
	 	 	 	 
	ARTICLE 8 COMMON OPERATING EXPENSES

	 	 	19	 
	 
	 	 	 	 
	ARTICLE 9 INSURANCE

	 	 	24	 
	 
	 	 	 	 
	ARTICLE 10 LIMITATION ON LANDLORD’S LIABILITY AND INDEMNITY

	 	 	26	 
	 
	 	 	 	 
	ARTICLE 11 DAMAGE TO PREMISES

	 	 	27	 
	 
	 	 	 	 
	ARTICLE 12 CONDEMNATION

	 	 	29	 
	 
	 	 	 	 
	ARTICLE 13 DEFAULT AND REMEDIES

	 	 	30	 
	 
	 	 	 	 
	ARTICLE 14 ASSIGNMENT AND SUBLETTING

	 	 	33	 
	 
	 	 	 	 
	ARTICLE 15 GENERAL PROVISIONS

	 	 	37	 

 

 

LEASE

          This Lease is dated as of the lease reference date specified in Section A of the
Summary of Basic Lease Terms and is made by and between the party identified as Landlord in
Section B of the Summary and the party identified as Tenant in Section C of the
Summary.

SUMMARY OF BASIC LEASE TERMS

	 	 	 	 	 
	SECTION	 	 
	(LEASE REFERENCE)	 	TERMS
	A.

(Introduction)

	 	Lease Reference Date:
	 	August 28, 2002
	 
	 	 	 	 
	B.

(Introduction)

	 	Landlord:
	 	Shoreline Park, LLC

a Delaware limited liability company
	 
	 	 	 	 
	C.

(Introduction)

	 	Tenant:
	 	CONCENTRIC MEDICAL, INC.

a Delaware corporation
	 
	 	 	 	 
	D.

(§ 1.20)

	 	Premises:
	 	That area consisting of approximately
21,788 square feet of gross rentable area
the address of which is 1380 Shorebird
Way, Mountain View, California, and which
is located within the Building as shown
on Exhibit A. The gross leasable area of
the Premises shall be deemed the actual
gross leasable area of the Premises.
	 
	 	 	 	 
	E.

(§1.21)

	 	Project:
	 	The Building, the parcel(s) of land upon
which the Building is located and the
other improvements located on said land,
all as outlined on Exhibit A.
	 
	 	 	 	 
	F.
(§ 1.7)

	 	Building:
	 	The building in which the Premises are
located having an address of 1380
Shorebird Way, Mountain View, California,
and containing approximately 21,788 gross
rentable square feet. The gross rentable
area of the Building referred to above
shall be deemed the actual gross rentable
area in the Building.
	 
	 	 	 	 
	G.
(§ 1.28)

	 	Tenant’s Share:
	 	100% of the Building (i.e., 21,788 square
feet in the Premises divided by 21,788
square feet in the Building).
	 
	 	 	 	 
	H.
(§4.5)	 	Tenant’s Allocated Parking Stalls: 79 parking spaces based on the ratio of 3.64 parking spaces
for each 1,000 square feet of gross leasable area in the Premises. See Section 4.5 for
additional parking provisions.
	 
	 	 	 	 
	I.	 	Scheduled Commencement Date: November 1, 2002
	 
	 	 	 	 
	J.	 	Lease Term: 38 calendar months commencing on the Commencement Date hereinafter defined). If
the Commencement Date is other than the first day of a calendar month, the first month shall

1

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	include the remainder of the calendar month in which the Commencement Date occurs plus the
first full calendar month thereafter; provided, however, that the inclusion of any partial
month in the first full calendar month shall not entitle Tenant to any additional free rent
during the Rent Abatement Period (as defined below).
	 
	 	 	 	 
	K.

	 	Base Monthly Rent:	 	 
	(§ 3.1)
	 	 	 	 

	 	 	 	 	 
	Months	 	 
	(following Commencement Date)	 	Base Monthly Rent
	1 – 2 (“Rent Abatement Period”)
	 	$	-0-	 
	3 – 12
	 	$	25,056.20	 
	13 – 24
	 	$	25,807.89	 
	25 – 38
	 	$	26,582.12	 

	 	 	 
	 

	 	The Rent Abatement Period will consist of the first two calendar months if the Commencement
Date occurs on the first day of a calendar month; otherwise the Rent Abatement Period will
consist of the first 60 days from and after the Commencement Date if the Commencement Date is
other than the first day of a calendar month. Tenant will not be entitled to any abatement of
Base Monthly Rent or Additional Rent if Tenant is in default of this Lease at the time the
applicable abatement is scheduled to occur until the same is cured within the applicable time
provided in this Lease.
	 
	 	 
	L.

(§ 3.3)

	 	Prepaid Rent: $25,056.20 plus Tenant’s Share of Common Operating Expenses due in the first
month following the end of the Rent Abatement Period.
	 
	 	 
	M.

(§ 3.5)

	 	Security Deposit: $159,492.72, which may be in the form of a Letter of Credit as provided in
Section 3.5A and Section 3.5B hereof.
	 
	 	 
	N.

(§ 4.1)

	 	Permitted Use: General office, research and development (including “clean room” facilities) and
other uses incidental thereto.
	 
	 	 
	O.

(§ 5.2)

	 	Permitted Tenant’s Alterations limit: $25,000.00
	 
	 	 
	P.

(§ 9.1)

	 	Tenant’s Liability Insurance Minimum: $3,000,000.00.

	 	 	 	 	 
	Q.

(§ 1.3)

	 	Landlord’s Address:
	 	Divco West Group, LLC

100 Park Center Plaza, Suite 425
	 

	 	 	 	San Jose, California 95113
	 

	 	 	 	Attn.: Property Manager
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Divco West Group, LLC
	 

	 	 	 	150 Almaden Blvd., Suite 700
	 

	 	 	 	San Jose, CA 95113
	 

	 	 	 	Attn.: Asset Manager
	 
	R.

	 	Tenant’s Address:
	 	Prior to the Commencement Date:
	 

	 	 	 	Concentric Medical, Inc.
	 

	 	 	 	2585 Leghorn Street
	 

	 	 	 	Mountain View, CA 94043
	 
	 

	 	With a copy to:
	 	From and After the Commencement
Date:
	 

	 	 	 	Concentric Medical, Inc.
	 

	 	 	 	1380 Shorebird Way
	 

	 	 	 	Mountain View, CA 94043
	 
	 	 	 	 
	S.

(§15.13)	 	Retained Real Estate Brokers: Craig L. Fordyce and Michael L. Rosendin of Colliers
International representing Landlord and Tom Sweeney and Lori Viviani of Wayne Mascia Associates
representing Tenant

2

 

	 	 	 	 	 
	T.

(§ 1.16)	 	Lease: This Lease includes the summary of the Basic Lease Terms, the Lease, and the following
exhibits and addenda:
	 
	 	 	 	 
	 	 	Exhibit A — Project Site Plan and Outline of the Premises

Exhibit B — Work Letter for Tenant Improvements

Exhibit C — Acceptance Agreement

Exhibit D — Hazardous Material Certificate

     The foregoing Summary is hereby incorporated into and made a part of this Lease. Each
reference in this Lease to any term of the Summary shall mean the respective information set forth
above and shall be construed to incorporate all of the terms provided under the particular
paragraph pertaining to such information. In the event of any conflict between the Summary and the
Lease, the Summary shall control.

ARTICLE 1 DEFINITIONS

     1.1 General: Any initially capitalized term that is given a special meaning by this
Article 1, the Summary, or by any other provision of this Lease (including the exhibits attached
hereto) shall have such meaning when used in this Lease or any addendum or amendment hereto unless
otherwise clearly indicated by the context.

     1.2 Additional Rent: The term “Additional Rent” is defined in Section 3.2.

     1.3 Address for Notices: The term “Address for Notices” shall mean the addresses set
forth in Sections Q and R of the Summary; provided, however, that after the Commencement
Date, Tenant’s Address for Notices shall be the address of the Premises.

     1.4 Agents: The term “Agents” shall mean the following: (i) with respect to Landlord,
the employees and agents of Landlord; and (ii) with respect to Tenant, the employees, contractors,
agents and invitees of Tenant and Tenant’s subtenants and their respective agents, employees,
contractors, and invitees.

     1.5 Agreed Interest Rate: The term “Agreed Interest Rate” shall mean that interest
rate determined as of the time it is to be applied that is equal to the lesser of (i) 5% in excess
of the discount rate established by the Federal Reserve Bank of San Francisco as it may be adjusted
from time to time, or (ii) the maximum interest rate permitted by Law, not to exceed 10% per annum.

     1.6 Base Monthly Rent: The term “Base Monthly Rent” means the fixed monthly rent
payable by Tenant pursuant to Section 3.1 which is specified in Section K of the Summary.

     1.7 Building: The term “Building” means the building in which the Premises are
located which Building is identified in Section F of the Summary.

     1.8 Commencement Date: The term “Commencement Date” means the earlier of (i) the date
the “Tenant Improvements” have been “Substantially Completed” (as such terms are defined in
Exhibit B attached hereto) and possession of the Premises is delivered to Tenant, or (ii)
such earlier date that Tenant accepts possession of the Premises. If there is any delay in
“Substantially Completing” (as defined in Exhibit B) the

3

 

Tenant Improvements due to a Tenant Delay, then the date under clause (i) above shall be deemed the
date the Tenant Improvements would have been Substantially Completed but for such Tenant Delay.

     1.9 Common Area: The term “Common Area” shall mean all areas and facilities within
the Project that are not designated by Landlord for the exclusive use of Tenant or any other lessee
or other occupant of the Project, including the parking areas, access and perimeter roads,
pedestrian sidewalks, landscaped areas, trash enclosures, recreation areas and the like.

     1.10 Common Operating Expenses: The term “Common Operating Expenses” is defined in
Section 8.2.

     1.11 Effective Date: The term “Effective Date” means the date the last signatory to
this Lease whose execution is required to make it binding on the parties hereto shall have executed
this Lease.

     1.12 Event of Tenant’s Default: The term “Event of Tenant’s Default” is defined in
Section 13.1.

     1.13 Hazardous Materials: The terms “Hazardous Materials” and “Hazardous Materials
Laws” are defined in Section 7.2F.

     1.14 Insured and Uninsured Peril: The terms “Insured Peril” and “Uninsured Peril” are
defined in ¶11.2E.

     1.15 Law: The term “Law” means any judicial decision, statute, constitution,
ordinance, resolution, regulation, rule, administrative order, or other requirement of any
municipal, county, state, federal or other government agency or authority having jurisdiction over
the parties to this Lease or the Premises, or both, in effect either at the Effective Date or any
time during the Lease Term, including, without limitation, any Hazardous Material Law (as defined
in Section 7.2F) and the Americans with Disabilities Act, 42 U.S.C. §§ 12101 et.
seq. and any rules, regulations, restrictions, guidelines, requirements or publications
promulgated or published pursuant thereto.

     1.16 Lease: The term “Lease” means the Summary and all elements of this Lease
identified in Section T of the Summary, all of which are attached hereto and incorporated
herein by this reference.

     1.17 Lease Term: The term “Lease Term” or “Term” means the term of this Lease which
shall commence on the Commencement Date and continue for the period specified in Section J
of the Summary.

     1.18 Lender: The term “Lender” means any beneficiary, mortgagee, secured party,
lessor, or other holder of any Security Instrument.

     1.19 Permitted Use: The term “Permitted Use” means the use specified in Section
N of the Summary.

     1.20 Premises: The term “Premises” means that building area described in Section
D of the Summary that is within the Building.

     1.21 Project: The term “Project” means that real property and the improvements
thereon which are specified in Section F of the Summary. Landlord reserves the right, in
its sole and absolute discretion, to include such other buildings in the Project, to sell,
transfer, assign or otherwise dispose of such other buildings or parcel in the Project and elect to
remove such building and/or parcel from the Project; provided that Tenant’s costs are not
materially increased and Tenant’s use of the Premises and appurtenant parking are not materially or
adversely affected.

4

 

     1.22 Private Restrictions: The term “Private Restrictions” shall mean all recorded
covenants, conditions and restrictions, private agreements, reciprocal easement agreements, and any
other recorded instruments affecting the use of the Premises which (i) exist as of the Effective
Date, or (ii) are recorded after the Effective Date and are approved by Tenant. Landlord
represents and warrants that it has delivered to Tenant a copy of all Private Restrictions
currently affecting the Premises.

     1.23 Real Property Taxes: The term “Real Property Taxes” or Taxes is defined in
Section 8.3.

     1.24 Scheduled Commencement Date: The term “Scheduled Commencement Date” shall mean
the date specified in Section I of the Summary.

     1.25 Security Instrument: The term “Security Instrument” means any underlying lease,
mortgage or deed of trust which now or hereafter affects the Project, and any renewal,
modification, consolidation, replacement or extension thereof.

     1.26 Summary: The term “Summary” means the Summary of Basic Lease Terms executed by
Landlord and Tenant that is part of this Lease.

     1.27 Tenant’s Alterations: The terms “Tenant’s Alterations” or “Tenant’s Alteration”
or “Tenant Alteration” mean all improvements, additions, alterations, and fixtures installed in the
Premises by Tenant at its expense which are not Trade Fixtures.

     1.28 Tenant’s Share: The term “Tenant’s Share” shall mean the percentage obtained by
dividing the gross rentable square footage of the Premises (as set forth in Section D of
the Summary) by the gross rentable square footage of the Building, which as of the Effective Date
is the percentage identified in Section G of the Summary.

     1.29 Trade Fixtures: The term “Trade Fixtures” shall mean (i) Tenant’s inventory,
furniture, signs, and business equipment, and (ii) anything affixed to the Premises by Tenant at
its expense for purposes of trade, manufacture, ornament or domestic use (except replacement of
similar work or material originally installed by Landlord) which can be removed without material
structural injury to the Premises.

ARTICLE 2 DEMISE, CONSTRUCTION, AND ACCEPTANCE

     2.1 Demise of Premises: Landlord hereby leases to Tenant, and Tenant leases from
Landlord, for the Lease Term upon the terms and conditions of this Lease, the Premises for Tenant’s
own use in the conduct of Tenant’s business together with (i) the non-exclusive right to use the
number of Tenant’s Allocated Parking Stalls within the Common Area (subject to the limitations set
forth in Section 4.5), and (ii) the non-exclusive right to use the Common Area for ingress to and
egress from the Premises. Landlord reserves the use of the exterior walls, the roof and the area
beneath and above the Premises, together with the right to install, maintain, use, and replace
ducts, wires, conduits and pipes leading through the Premises in locations which will not
materially interfere with Tenant’s use of the Premises.

     2.2 Commencement Date: On the Commencement Date Landlord shall deliver possession of
the Premises to Tenant with the Tenant Improvements Substantially Complete and the Lease Term shall
commence.

     2.3 Construction of Improvements: Landlord agrees to construct the Tenant
Improvements in accordance with the terms of Exhibit B.

     2.4 Delivery and Acceptance of Possession: If Landlord is unable to deliver
possession of the Premises to Tenant on or before the Scheduled Commencement Date for any reason
whatsoever, then this Lease shall not be void or voidable except as provided in this paragraph, and
Landlord shall not be liable to Tenant for

5

 

any loss or damage resulting therefrom. Notwithstanding the foregoing, if Landlord does not
deliver possession of the Premises to Tenant with the Tenant Improvements Substantially Completed
within 90 days after the Scheduled Commencement Date (as such 90-day period shall be extended for
“Force Majeure Delays” and “Tenant Delays” as such terms are defined in Exhibit B attached hereto),
then Tenant (if the delay was not due to a Tenant Delay), Tenant shall have the right to terminate
this Lease upon written notice to the Landlord within ten (10) days after receipt of written notice
from Landlord that there will be a delay beyond such time period (provided that Landlord has not
delivered possession of the Premises to Tenant with the Tenant Improvements Substantially Complete
prior Tenant’s delivery of its termination notice). Tenant shall accept possession of the Premises
on the Commencement Date, provided the Tenant Improvements have been Substantially Completed.
Except for the Tenant Improvements to be completed by Landlord and as otherwise specifically
provided herein and subject to Landlord’s maintenance, repair and restoration obligations under
Articles 6, 11 and 12, Tenant agrees to accept possession of the Premises in its then existing
condition, “as-is”. Subject to the warranties set forth in the Work Letter with respect to the
Tenant Improvements, Tenant’s taking possession of any part of the Premises shall be deemed to be
an acceptance by Tenant of the Premises except for defects in the Premises of which Tenant has
given Landlord written notice within 90 days after the Commencement Date (which defects shall be
repaired by Landlord at no additional charge to Tenant as soon as is commercially reasonable), and
Landlord’s maintenance, repair and restoration obligations. Landlord’s obligation to repair such
defects shall not include or apply to any damage caused by Tenant or any of Tenant’s Agents. At
the time Landlord delivers possession of the Premises to Tenant with the Tenant Improvements
Substantially Complete, Landlord and Tenant shall together execute an acceptance agreement in the
form attached as Exhibit C, appropriately completed. The failure of Tenant to execute such
Acceptance Agreement shall not extend or delay the Commencement Date and the Commencement Date
shall be deemed the date specified in the Acceptance Agreement or other notice delivered by
Landlord to Tenant.

     2.5 Early Occupancy: Landlord shall notify Tenant when the Premises are ready for
Tenant’s fixturing or Tenant’s work, which shall be as soon as reasonably possible after the
execution hereof, provided Landlord determines that such early entry will not adversely affect the
construction of the Tenant Improvements. Tenant may thereupon enter the Premises for such purposes
at its own risk, to make such improvements as Tenant shall have the right to make, to install
fixtures, supplies, inventory and other property. Tenant agrees that it shall not interfere with
the progress of Landlord’s work by such entry. Should such entry prove an impediment to the
progress of Landlord’s work, in Landlord’s judgment, Landlord may demand that Tenant forthwith
vacate the Premises until such time as Landlord’s work is complete, and Tenant shall immediately
comply with this demand. During the course of such early occupancy, all applicable terms and
conditions of this Lease shall be in effect, except those regarding the start of the Commencement
Date, the obligation to pay Base Monthly Rent and Tenant’s Share of Common Operating Expenses, and
the obligation to perform Tenant’s general maintenance obligations under Section 6.1.

ARTICLE 3 RENT

     3.1 Base Monthly Rent: Commencing on the Commencement Date (but subject to the Rent
Abatement Period specified in Section K of the Summary) and continuing throughout the Lease
Term, Tenant shall pay to Landlord the Base Monthly Rent set forth in Section K of the
Summary.

     3.2 Additional Rent: Commencing on the Commencement Date (but subject to the Rent
Abatement Period specified in Section K of the Summary) and continuing throughout the Lease
Term, Tenant shall pay the following as additional rent (the “Additional Rent”): (i) any late
charges or interest due Landlord pursuant to Section 3.4; (ii) Tenant’s Share of Common Operating
Expenses as provided in Section 8.1; (iii) Landlord’s share of any Subrent received by Tenant upon
certain assignments and sublettings as required by Section 14.1; (iv) any legal fees and costs due
Landlord pursuant to Section 15.9; and (v) any other charges due Landlord pursuant to this Lease.

6

 

     3.3 Payment of Rent: Concurrently with the execution of this Lease by both parties,
Tenant shall pay to Landlord the amount set forth in Section L of the Summary as prepayment
of rent for credit against the first installment(s) of Base Monthly Rent due hereunder (subject to
the Rent Abatement Period). The term “Rent” or “rent” shall mean Base Monthly Rent, Additional
Rent and other sums required to be paid by Tenant under this Lease. All rent required to be paid
in monthly installments shall be paid in advance on the first day of each calendar month during the
Lease Term. If Section K of the Summary provides that the Base Monthly Rent is to be
increased during the Lease Term and if the date of such increase does not fall on the first day of
a calendar month, such increase shall become effective on the first day of the next calendar month.
All rent shall be paid in lawful money of the United States, without any abatement, deduction or
offset whatsoever (except as specifically provided in Section 11.4 and Section 12.3), and without
any prior demand therefor. Rent shall be paid to Landlord at its address set forth in Section
Q of the Summary, or at such other place as Landlord may designate from time to time. Tenant’s
obligation to pay Base Monthly Rent and Tenant’s Share of Common Operating Expenses shall be
prorated at the commencement and expiration of the Lease Term.

     3.4 Late Charge, Interest and Quarterly Payments:

          (a) Late Charge. Tenant acknowledges that the late payment by Tenant of any
installment of rent, or any other sum of money required to be paid by Tenant under this Lease, will
cause Landlord to incur certain costs and expenses not contemplated under this Lease, the exact
amount of such costs being extremely difficult and impractical to fix. Such costs and expenses
will include, without limitation, attorneys’ fees, administrative and collection costs, and
processing and accounting expenses and other costs and expenses necessary and incidental thereto.
If any Base Monthly Rent or Additional Rent is not received by Landlord from Tenant when such
payment is due, then Tenant shall immediately pay to Landlord a late charge equal to 5% of such
delinquent rent as liquidated damages for Tenant’s failure to make timely payment; provided,
however, that Landlord agrees that Tenant shall not have to pay such late charge if it makes its
payment in full within five (5) days after receipt of written notice from Landlord, except that
this notice and cure period shall only be applicable for the first two times each calendar year
that Tenant fails to pay any monthly Base Monthly Rent or any Additional Rent when due. If
Landlord has provided two notices of a late payment or default during a calendar year, Landlord
shall not be obligated to provide any notice thereafter for the remainder of such calendar year and
such late charge shall be due if payment is not made when due without any grace period or notice.
In no event shall this provision for a late charge be deemed to grant to Tenant a grace period or
extension of time within which to pay any rent or prevent Landlord from exercising any right or
remedy available to Landlord upon Tenant’s failure to pay any rent due under this Lease in a timely
fashion, including any right to terminate this Lease pursuant to Section 13.2B.

          (b) Interest. If any Base Monthy Rent or Additional Rent remains delinquent for a
period in excess of ten (10) days after written notice then, in addition to such late charge,
Tenant shall pay to Landlord interest on any rent that is not paid when due at the Agreed Interest
Rate following the date such amount became due until paid; provided, however, that Landlord will
only have to provide this notice and cure period two times each calendar year that Tenant fails to
pay any Base Monthly Rent or any Additional Rent when due. If Landlord has provided two notices of
a late payment or default during a calendar year, Landlord shall not be obligated to provide any
notice thereafter for the remainder of such calendar year and such interest shall be due if payment
is not made within ten (10) days after the date such payment is due without any notice or
additional grace period.

          (c) Quarterly Payments. If Tenant during any calendar year shall be more than ten
(10) days delinquent in the payment of any rent or other amount payable by Tenant hereunder on
three (3) or more occasions, then, notwithstanding anything herein to the contrary, Landlord may,
by written notice to Tenant, elect to require Tenant to pay all Base Monthly Rent and Additional
Rent quarterly in advance. Such right shall be in addition to and not in lieu of any other right
or remedy available to Landlord hereunder or at law on account of Tenant’s default hereunder

7

 

     3.5 Security Deposit: On the Effective Date, Tenant shall deposit with Landlord the
amount set forth in Section M of the Summary as security for the performance by Tenant of
its obligations under this Lease, and not as prepayment of rent (the “Security Deposit”). Landlord
may from time to time apply such portion of the Security Deposit as is reasonably necessary for the
following purposes: (i) to remedy any Event of Tenant’s Default in the payment of rent; and (ii) to
remedy any other Event of Tenant’s Default to the extent permitted by Law and, in this regard,
Tenant hereby waives any restriction on the uses to which the Security Deposit may be put contained
in California Civil Code Section 1950.7, it being agreed that Landlord may, in addition, claim
those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or
unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee
of Tenant. In the event the Security Deposit or any portion thereof is so used, Tenant agrees to
pay to Landlord within ten (10) days after its receipt of written demand an amount in cash
sufficient to restore the Security Deposit to the full original amount. Landlord shall not be
deemed a trustee of the Security Deposit, may use the Security Deposit in business, and shall not
be required to segregate it from its general accounts. Tenant shall not be entitled to any
interest on the Security Deposit. If Landlord transfers the Premises during the Lease Term,
Landlord shall pay the Security Deposit to any transferee of Landlord’s interest in conformity with
the provisions of California Civil Code Section 1950.7 and/or any successor statute, in which event
the transferring Landlord will be released from all liability for the return of the Security
Deposit.

          A. Letter of Credit Security Deposit. In lieu of depositing cash for the full amount
of the Security Deposit, Tenant shall have the right to deposit a letter of credit for the full
amount of the Security Deposit. Said letter of credit shall be in the form of an irrevocable,
unconditional and clean standby letter of credit and otherwise in the form set forth below (the
“Letter of Credit”). The term Security Deposit shall mean the cash portion of the Security Deposit
and the Letter of Credit.

          B. Form of Letter of Credit. The Letter of Credit shall be issued by a national bank
acceptable to Landlord in its reasonable discretion, with offices in the San Francisco Bay Area
that will accept and pay on any draw on the Letter of Credit. The Letter of Credit shall be issued
for a term of at least one year and shall be automatically renewable for one year successive
periods (with a term during the last year of the Lease Term of at least 30 days following the
expiration of the Lease Term) unless the issuing bank provides at least 30 days prior written
notice to Landlord that the Letter of Credit will not be renewed, and shall be in a form and with
such content reasonably acceptable to Landlord. Any Letter of Credit that Tenant delivers to
Landlord in replacement of an existing Letter of Credit shall be in an amount equal to the replaced
Letter of Credit (prior to any draws) so that the cash and Letter of Credit together equal the
amount of the Security Deposit specified in this Lease. Any such replacement Letter of Credit
shall be delivered to and received by Landlord no later than thirty (30) days prior to the
expiration of the term of the Letter of Credit then in effect. The Letter of Credit shall
expressly permit full and partial draws. The Letter of Credit shall designate Landlord as
beneficiary and shall be transferable by beneficiary to any transferee, successor, and assign only
in connection with an assignment of this Lease (including an assignment to any lender of Landlord)
at no cost or expense to beneficiary. The Letter of Credit shall be held by Landlord as security
for the faithful performance by Tenant of all the terms, covenants and conditions of this Lease to
be kept and performed by Tenant during the Lease Term. The Letter of Credit shall not be
mortgaged, assigned or encumbered in any manner whatsoever by Tenant without the prior written
consent of Landlord in its sole and absolute discretion.

               (1) Draw Documents. The Letter of Credit shall provide that it may be drawn by
Landlord (or its assignee) upon presentation by Landlord to the issuing bank (at its offices in the
San Francisco Bay Area) of a sight draft(s), together with a written statement executed by Landlord
stating that the amount requested is due Landlord under this Lease. The amount of the draw
requested by Landlord shall be payable by the bank without further inquiry or any other
documentation or further action required of the bank, Landlord, or Tenant. All costs and expenses
to obtain the Letter of Credit and all renewals shall be borne by Tenant.

               (2) Draws. If Tenant commits an Event of Tenant’s Default with respect to any
provisions of this Lease, including but not limited to, the provisions relating to the payment of
Rent, or if

8

 

Tenant fails to renew the Letter of Credit at least thirty (30) days before its expiration,
Landlord may, but shall not be required to, draw upon all or any portion of the Letter of Credit
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 all other losses or damages that Landlord may suffer by reason of Tenant’s
default, including, without limitation, all losses and damages in connection with the termination
of this Lease due such default by Tenant. If Tenant fails to deposit a replacement Letter of
Credit or renew the expiring Letter of Credit, Landlord shall have the right to draw upon the
expiring Letter of Credit for the full amount thereof and hold the same as Security Deposit;
provided, however, that if Tenant provides a replacement Letter of Credit that meets the
requirements of this section, Landlord shall promptly return to Tenant in cash that amount of the
Letter of Credit that had been drawn upon by Landlord. If for any reason the Letter of Credit does
not permit partial draws, then Landlord shall have the right to make a full draw on the Letter of
Credit, notwithstanding that the full amount may not be required to cure any default by Tenant.

               (3) Restoration of Deposit. If the Letter of Credit is drawn upon by Landlord, Tenant
shall, within ten (10) days after written demand therefor, deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to amount required under this Lease. At all times the
Security Deposit, whether in the form of cash and/or Letter of Credit, shall be in the amount
specified in this Lease. The use, application or retention of the Letter of Credit, or any 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 use all or
any part of the Letter of Credit or cash portion of the Security Deposit, and such use shall not
operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant shall
not be entitled to any interest on the cash portion of the Security Deposit. The exercise of any
rights of Landlord to the Security Deposit shall not constitute a waiver of nor relieve Tenant from
any liability or obligation for any default by Tenant. If Landlord draws upon the entire amount of
the Letter of Credit, Tenant may deliver a replacement Letter of Credit to Landlord, instead of
depositing cash with Landlord, equal to the original amount of the Letter of Credit.

          C. Reduction for Performance. Landlord agrees to permit Tenant to reduce the amount
of the Security Deposit to an amount equal to $26,582.12, provided that Tenant has satisfied the
following conditions:

               (i) No Event of Tenant’s Default of any provision of this Lease exists at the time of the
request or through the date of the scheduled reduction, but while a default exists during a cure
period, there shall not be any reduction in the Security Deposit under this paragraph; and

               (ii) Tenant has obtained equity financing of at least seven million dollars ($7,000,000.00).
Tenant covenants and agrees to provide any supporting information reasonably requested by Landlord
to substantiate such equity financing.

     If Tenant satisfies the above conditions to Landlord’s reasonable satisfaction, then Tenant
may, not less than (10) days after Landlord’s approval, either obtain and deliver a new or amended
Letter of Credit to replace or amend, as the case may be, the then existing Letter of Credit, in an
amount required under this section.

ARTICLE 4 USE OF PREMISES

     4.1 Limitation on Use: Tenant shall use the Premises solely for the Permitted Use
specified in Section N of the Summary. There shall not be any change in use without the
prior written consent of Landlord which will not be unreasonably withheld. Tenant shall not do
anything in or about the Premises which will (i) cause structural injury to the Building, or (ii)
cause damage to any part of the Building except to the extent reasonably necessary for the
installation of Tenant’s Trade Fixtures and Tenant’s Alterations, and then only in a manner which
has been first approved by Landlord in writing (which approval shall not be unreasonably withheld
or delayed). Tenant shall not operate any equipment within the Premises which will (i) materially

9

 

damage the Building or the Common Area, (ii) overload existing electrical systems or other
mechanical equipment servicing the Building, (iii) impair the efficient operation of the sprinkler
system or the heating, ventilating or air conditioning (“HVAC”) equipment within or servicing the
Building, or (iv) damage, overload or corrode the sanitary sewer system. Tenant shall not attach,
hang or suspend anything from the ceiling, roof, walls or columns of the Building or set any load
on the floor in excess of the load limits for which such items are designed nor operate hard wheel
forklifts within the Premises. Any dust, fumes, or waste products generated by Tenant’s use of the
Premises shall be contained and disposed so that they do not (i) create an unreasonable fire or
health hazard, (ii) damage the Premises, or (iii) result in the violation of any Law. Except as
approved by Landlord in the exercise of its sole (but not arbitrary) discretion, Tenant shall not
change the exterior of the Building or install any equipment or antennas on or make any
penetrations of the exterior or roof of the Building. Tenant shall not commit any waste in or
about the Premises, and Tenant shall keep the Premises in a clean and orderly condition, free of
any nuisances. If Landlord designates a standard window covering for use throughout the Building,
Tenant shall use this standard window covering to cover all windows in the Premises. Tenant shall
not conduct on any portion of the Premises or the Project any over-the-counter sale of any kind,
including any public or private auction, fire sale, going-out-of-business sale, distress sale or
other liquidation sale.

     Landlord agrees that by the Commencement Date, the HVAC and electrical and plumbing systems
for the Premises will be in good working condition. If during the Term Tenant shall desire to
improve the electrical and/or mechanical systems in order to meet Tenant’s emerging business
requirements, Landlord agrees not to unreasonably withhold or delay approval of Tenant’s request
for such improvements; provided, however that the installation of such supplemental or additional
electrical line or capacity or other system shall be done at Tenant’s sole cost and expense.

     4.2 Compliance with Regulations: Tenant shall not use the Premises in any manner
which violates any Laws or Private Restrictions which affect the Premises. Tenant shall abide by
and promptly observe and comply with all Laws and Private Restrictions. Tenant shall not use the
Premises in any manner which will cause a cancellation of any insurance policy covering Tenant’s
Alterations or any improvements installed by Landlord at its expense or which poses an unreasonable
risk of damage or injury to the Premises. Tenant shall not sell, or permit to be kept, used, or
sold in or about the Premises any article which may be prohibited by the standard form of fire
insurance policy. Tenant shall comply with all reasonable requirements of any insurance company,
insurance underwriter, or Board of Fire Underwriters which are necessary to maintain the insurance
coverage carried by either Landlord or Tenant pursuant to this Lease. Notwithstanding the
foregoing, (i) as of the date possession of the Premises is delivered to Tenant, the Premises and
the Building shall conform to all Laws requiring compliance as of such date, (ii) Tenant shall not
be required to make any capital improvements to the structural parts of the Premises, or any
capital improvements to the non-structural portions of the Premises which will cost more than
$5,000.00 in the aggregate of all such capital improvements made during an applicable calendar
year, to comply with any Laws, insurance company, board or underwriter’s requirements or legal
requirements, applicable to the Premises, unless such compliance is necessitated by Tenant’s
particular use of, or the manner in which it conducts its business in, or any Tenant’s Alterations
made to, the Premises.

     4.3 Outside Areas: No materials, supplies, tanks or containers, equipment, finished
products or semi-finished products, raw materials, inoperable vehicles or articles of any nature
shall be stored upon or permitted to remain outside of the Premises except in fully fenced and
screened areas outside the Building which have been designed for such purpose and have been
approved in writing by Landlord in its sole but not arbitrary discretion for such use by Tenant.

     4.4 Signs: Tenant shall not place on any portion of the Premises any sign, placard,
lettering in or on windows, banner, displays or other advertising or communicative material which
is visible from the exterior of the Building without the prior written approval of Landlord, which
approval shall not be unreasonably withheld or delayed. Tenant may have its name on the door of
the Premises and a monument sign, subject to

10

 

the prior approval by Landlord in its reasonable discretion concerning the size, design and quality
of the sign. All such approved signs shall strictly conform to all Laws, Private Restrictions, and
Landlord’s sign criteria then in effect and shall be installed at the expense of Tenant. Tenant
shall maintain such signs in good condition and repair.

     4.5 Parking: Tenant is allocated and shall have the non-exclusive right, at no
additional charge for parking (other than for costs included as part of Common Operating Expenses
and Real Property Taxes), to use not more than the number of Tenant’s Allocated Parking Stalls
contained within the Project described in Section H of the Summary for its use and the use
of Tenant’s Agents, the location of which may be designated from time to time by Landlord, but
Landlord will not discriminate against Tenant in designating the areas where such parking may be
located. Tenant shall not at any time use more parking spaces than the number so allocated to
Tenant or park its vehicles or the vehicles of others in any portion of the Project not designated
by Landlord as a non-exclusive parking area. Tenant shall not have the exclusive right to use any
specific parking space. If Landlord grants to any other tenant the exclusive right to use any
particular parking space(s), Tenant shall not use such spaces. Landlord reserves the right, after
having given Tenant reasonable notice, to have any vehicles owned by Tenant or Tenant’s Agents
utilizing parking spaces in excess of the parking spaces allowed for Tenant’s use to be towed away
at Tenant’s cost. All trucks and delivery vehicles shall be (i) parked at the rear of the
Building, (ii) loaded and unloaded in a manner which does not interfere with the businesses of
other occupants of the Project, and (iii) permitted to remain on the Project only so long as is
reasonably necessary to complete loading and unloading. In the event Landlord elects or is
required by any Law to limit or control parking in the Project, whether by validation of parking
tickets or any other method of assessment, Tenant agrees to participate in such validation or
assessment program under such reasonable rules and regulations as are from time to time established
by Landlord. Landlord will in no event oversubscribe the available parking at the Building or
Project.

     4.6 Rules and Regulations: Landlord may from time to time promulgate reasonable and
nondiscriminatory rules and regulations applicable to all occupants of the Project for the care and
orderly management of the Project and the safety of its tenants and invitees. Such rules and
regulations shall be binding upon Tenant upon delivery of a copy thereof to Tenant, and Tenant
agrees to abide by such rules and regulations. If there is a conflict between the rules and
regulations and any of the provisions of this Lease, the provisions of this Lease shall prevail.
Landlord shall not be responsible for the violation by any other tenant of the Project of any such
rules and regulations.

ARTICLE 5 TRADE FIXTURES AND ALTERATIONS

     5.1 Trade Fixtures: Throughout the Lease Term, Tenant may provide and install, and
shall maintain in good condition, any Trade Fixtures required in the conduct of its business in the
Premises, except to the extent (a) any Trade Fixture will use, generate, store or dispose of any
Hazardous Material in which case the prior written consent of Landlord in its sole but reasonable
discretion shall be required before such Trade Fixture may be installed, or (b) any Trade Fixture
will constitute a Tenant Alteration, in which case it shall be subject to the requirements set
forth below for the construction of a Tenant Alteration. All Trade Fixtures shall remain Tenant’s
property.

     5.2 Tenant’s Alterations: Construction by Tenant of a Tenant Alteration shall be
governed by the following:

          A. Consent Required. Tenant shall not construct any Tenant’s Alterations or otherwise
alter the Premises without Landlord’s prior written approval, which will not be unreasonably
withheld unless such Tenant Alteration affects areas outside of the Premises or the exterior of the
Building or the structural parts of the Building, in which case Landlord may withhold its consent
in its sole and absolute discretion. Tenant shall be entitled, without Landlord’s prior approval,
to make a Tenant Alteration (i) which does not affect the structural or exterior parts or roof or
water tight character of the Building, (ii) does not affect or alter

11

 

any areas outside of the Premises, and (iii) the reasonably estimated cost of which, plus the
original cost of any part of the Premises removed or materially altered in connection with such
Tenant’s Alterations, together do not exceed the Permitted Tenant Alterations Limit specified in
Section O of the Summary per work of improvement. In the event Landlord’s approval for any
Tenant’s Alterations is required, Tenant shall not construct the Tenant Alteration until Landlord
has approved in writing the plans and specifications therefor, and such Tenant’s Alterations shall
be constructed substantially in compliance with such approved plans and specifications by a
licensed contractor first approved by Landlord. All Tenant’s Alterations constructed by Tenant
shall be constructed by a licensed contractor in accordance with all Laws using new materials of
good quality.

          B. Other Requirements. Tenant shall not commence construction of any Tenant’s
Alterations until (i) all required governmental approvals and permits have been obtained, (ii) all
requirements regarding insurance imposed by this Lease have been satisfied, (iii) Tenant has given
Landlord at least five days’ prior written notice of its intention to commence such construction,
and (iv) if reasonably requested by Landlord, Tenant has obtained contingent liability and broad
form builders’ risk insurance in an amount reasonably satisfactory to Landlord if there are any
perils relating to the proposed construction not covered by insurance required to be carried
pursuant to Article 9.

          C. Restoration. All Tenant’s Alterations (but not the initial Tenant Improvements)
shall remain the property of Tenant during the Lease Term and may be removed at any time so long as
Tenant repairs all damage caused by the removal and restores the Premises to their original
condition (reasonable wear and tear excepted). At the expiration or sooner termination of the
Lease Term, any of Tenant’s Alterations not removed by Tenant shall be surrendered to Landlord as
part of the realty and shall then become Landlord’s property, and Landlord shall have no obligation
to reimburse Tenant for all or any portion of the value or cost thereof; provided, however, that if
Landlord notifies Tenant in writing at the time Landlord approves of any such Tenant’s Alterations
that such Tenant’s Alterations must be removed upon the termination of this Lease, then Tenant
shall so remove such Tenant’s Alterations prior to the expiration or sooner termination of the
Lease Term. Notwithstanding the foregoing, Tenant shall not be obligated to remove any Tenant’s
Alterations with respect to which the following is true: (i) Tenant was required, or elected, to
obtain the approval of Landlord to the installation of the Tenant’s Alterations in question; (ii)
at the time Tenant requested Landlord’s approval, Tenant requested of Landlord in writing that
Landlord inform Tenant of whether or not Landlord would require Tenant to remove such Tenant
Alteration at the expiration of the Lease Term; and (iii) at the time Landlord granted its
approval, it did not inform Tenant that it would require Tenant to remove such Tenant’s Alterations
at the expiration of the Lease Term.

     5.3 Alterations Required by Law: Tenant shall make any alteration, addition or change
of any sort to the Premises that is required by any Law because of (i) Tenant’s particular use or
change of use of the Premises; (ii) Tenant’s application for any permit or governmental approval;
or (iii) Tenant’s construction or installation of any Tenant’s Alterations or Trade Fixtures. Any
other alteration, addition, or change required by Law which is not the responsibility of Tenant
pursuant to the foregoing shall be made by Landlord (subject to Landlord’s right to reimbursement
from Tenant specified in Section 5.4).

     5.4 Amortization of Certain Capital Improvements: Tenant shall pay Additional Rent in
the event Landlord reasonably elects or is required to make any of the following kinds of capital
improvements to the Building or exterior Common Areas of the Project: (i) capital improvements
required to be constructed in order to comply with any Law (excluding any Hazardous Materials Law)
not in effect or applicable to the Project as of the Effective Date; (ii) modification of existing
or construction of additional capital improvements or building service equipment for the purpose of
reducing the consumption of utility services or Common Operating Expenses of the Project (but not
in excess of the actual cost savings achieved as a result of such capital improvements during the
Lease Term), and (iii) replacement of capital improvements to
the non-structural portions of the
Building (for purposes hereof, the nonstructural portions of the Building shall not include the
foundation, load bearing and exterior walls, structural floors, floorslabs, footings, structural
support

12

 

columns and roof structure, but the roof membrane is considered a nonstructural part of the
Building), or building service equipment when required because of normal wear and tear, except for
capital improvements to expand the Common Areas (such as the construction of parking garage) or to
construct an additional building or expand an existing building. The amount of Additional Rent
Tenant is to pay with respect to each such capital improvement shall be determined as follows:

          A. Amortization Period. All costs paid by Landlord to construct such improvements
(including financing costs) shall be amortized over the useful life of such improvement (as
reasonably determined by Landlord in accordance with generally accepted accounting principles) with
interest on the unamortized balance at the then prevailing market rate Landlord would pay if it
borrowed funds to construct such improvements from an institutional lender, and Landlord shall
inform Tenant of the monthly amortization payment required to so amortize such costs, and shall
also provide Tenant with the information upon which such determination is made.

          B. Payment. As Additional Rent, Tenant shall pay at the same time the Base Monthly
Rent is due an amount equal to Tenant’s Share of that portion of such monthly amortization payment
fairly allocable to the Building (as reasonably determined by Landlord) for each month after such
improvements are completed until the first to occur of (i) the expiration of the Lease Term (as it
may be extended), or (ii) the end of the term over which such costs were amortized.

          Notwithstanding the anything to the contrary in the Lease, if Landlord replaces the roof of
the Building during the initial Lease Term, Landlord will not charge Tenant for the cost of such
roof replacement.

     5.5 Mechanic’s Liens: Tenant shall keep the Project free from any liens and shall pay
when due all bills arising out of any work performed, materials furnished, or obligations incurred
by Tenant or Tenant’s Agents relating to the Project. If any claim of lien is recorded (except
those caused by Landlord or Landlord’s Agents), Tenant shall bond against or discharge the same
within 10 days after Tenant has received written notice from Landlord that the same has been
recorded against the Project. Should any lien be filed against the Project or any action be
commenced affecting title to the Project, the party receiving notice of such lien or action shall
immediately give the other party written notice thereof.

     5.6 Taxes on Tenant’s Property: Tenant shall pay before delinquency any and all
taxes, assessments, license fees and public charges levied, assessed or imposed against Tenant or
Tenant’s estate in this Lease or the property of Tenant situated within the Premises which become
due during the Lease Term. If any tax or other charge is assessed by any governmental agency
because of the execution of this Lease, such tax shall be paid by Tenant. Promptly upon demand by
Landlord, Tenant shall furnish Landlord with satisfactory evidence of these payments.

ARTICLE 6 REPAIR AND MAINTENANCE

     6.1 Tenant’s Obligation to Maintain: Except as otherwise provided in Section 5.4,
Section 6.2, Section 11.1, and Section 12.3, Tenant shall be responsible for the following during
the Lease Term:

          A. General. Tenant shall clean and maintain in good order, condition, and repair and
replace when necessary the interior of the Premises and every part thereof, through regular
inspections and servicing, including, but not limited to: (i) all interior plumbing and sewage
fixtures (including all sinks, toilets, faucets and drains); (ii) all fixtures, interior walls,
floors, carpets and ceilings; (iii) all windows, doors, entrances, plate glass, showcases and
skylights (including cleaning both interior and exterior surfaces); (iv) all interior electrical
facilities and all equipment (including all lighting fixtures, lamps, bulbs, tubes, fans, vents,
exhaust equipment and systems); and (v) any automatic fire extinguisher equipment in the Premises.

13

 

          B. Utilities and Glass. With respect to utility facilities serving the Premises
(including electrical wiring and conduits, gas lines, water pipes, and plumbing and sewage fixtures
and pipes), Tenant shall be responsible for the maintenance and repair of any such facilities which
serve only the Premises, including all such facilities that are within the walls or floor, or on
the roof of the Premises, and any part of such facility that is not within the Premises, but only
up to the point where such facilities join a main or other junction (e.g., sewer main or electrical
transformer) from which such utility services are distributed to other parts of the Project as well
as to the Premises.

          C. Windows. Tenant shall replace any damaged or broken glass in the Premises
(including all interior and exterior doors and windows) with glass of the same kind, size and
quality. Tenant shall repair any damage to the interior of the Premises and exterior doors and
windows caused by vandalism or any unauthorized entry. Tenant shall maintain continuously
throughout the Lease Term a service contract for the washing of all windows (both interior and
exterior surfaces) in the Premises with a contractor reasonably approved by Landlord, which
contract provides for the periodic washing of all such windows at least once every 90 days during
the Lease Term. Tenant shall furnish Landlord with copies of all such service contracts, which
shall provide that they may not be canceled or changed without at least 30 days’ prior written
notice to Landlord.

          D. HVAC. Tenant shall (i) maintain and repair (including, without limitation,
replacing component parts) when necessary all HVAC equipment which services only the Premises, and
shall keep the same in good condition through regular inspection and servicing, and (ii) maintain
continuously throughout the Lease Term a service contract for the maintenance of all such HVAC
equipment with a licensed HVAC repair and maintenance contractor approved by Landlord, which
contract provides for the periodic inspection and servicing of the HVAC equipment at least once
every 90 days during the Lease Term. If the HVAC unit(s) serving the Premises needs to be replaced
due to normal wear and tear or if the repairs required to be made by Tenant exceed $1,000.00,
Landlord agrees to perform the work for the repair or replacement of the HVAC unit(s) servicing the
Premises as and when determined by Landlord in good faith where such work is not due to any
negligence or willful misconduct of Tenant or any of Tenant’s Agents or due to any Tenant’s
Alteration, and Tenant shall pay to Landlord the amortized portion of the cost for any such work in
accordance with Section 5.4 of this Lease. Notwithstanding the foregoing, Landlord may elect at
any time to assume responsibility for the maintenance, repair and replacement of such HVAC
equipment which serves only the Premises, provided the costs for such maintenance service contract
shall be customary for such service contracts for similar properties in the vicinity of the
Project. Tenant shall furnish Landlord with a copy of such service contract, which shall provide
that they may not be canceled or changed without at least 30 days’ prior written notice to
Landlord.

          Prior to the Commencement Date, Landlord will have the HVAC equipment inspected by a HVAC
service vendor (“HVAC Report”) and Landlord agrees to cause the work that is recommended in the
HVAC Report for the HVAC equipment that services the Premises to be done by the Commencement Date
and the cost thereof shall not be charged to Tenant.

          E. Standards. All repairs and replacements required of Tenant and Landlord shall be
promptly made with new materials of like kind and quality. If the work affects the structural parts
of the Building or if the estimated cost of any item of repair or replacement is in excess of the
Permitted Tenant’s Alterations Limit, then Tenant shall first obtain Landlord’s written approval of
the scope of the work, plans therefor, materials to be used, and the contractor.

     6.2 Landlord’s Obligation to Maintain: Landlord shall repair, maintain and operate
the Common Area and repair and maintain the roof, exterior and structural parts of the building(s)
located on the Project (including, without limitation, the load bearing and exterior walls,
structural floors, floorslabs, foundation, footings, structural support columns, exterior pipes and
conduit (including the exterior fire protection loop) to the point of entry into the buildings) so
that the same are kept in good order and repair. Landlord shall also

14

 

perform all repairs necessitated by the negligence or willful misconduct of Landlord or Landlord’s
Agents or that are covered by Landlord’s warranties set forth in the Lease. Landlord may engage
contractors of its choice to perform the obligations required of it by this Article, and the
necessity of any expenditure to perform such obligations shall be at the sole discretion of
Landlord.

     6.3 Control of Common Area: Landlord shall at all times have exclusive control of the
Common Area. Landlord shall have the right, without the same constituting an actual or
constructive eviction and without entitling Tenant to any abatement of rent, to: (i) close any part
of the Common Area to whatever extent required in the opinion of Landlord’s counsel to prevent a
dedication thereof or the accrual of any prescriptive rights therein; (ii) temporarily close the
Common Area to perform maintenance or for any other reason deemed sufficient by Landlord; (iii)
change the shape, size, location and extent of the Common Area; (iv) eliminate from or add to the
Project any land or improvement, including multi-deck parking structures; (v) make changes to the
Common Area including, without limitation, changes in the location of driveways, entrances,
passageways, doors and doorways, elevators, stairs, restrooms, exits, parking spaces, parking
areas, sidewalks or the direction of the flow of traffic and the site of the Common Area; (vi)
remove unauthorized persons from the Project; and/or (vii) change the name or address of the
Building or Project. The costs incurred by Landlord in connection with making such changes may be
included in Common Operating Expenses to the extent permitted in Section 8.2 hereof. Tenant shall
keep the Common Area clear of all obstructions created or permitted by Tenant. If in the
reasonable opinion of Landlord unauthorized persons are using any of the Common Area by reason of
the presence of Tenant in the Building, Tenant, upon demand of Landlord, shall restrain such
unauthorized use by appropriate proceedings. In exercising any such rights regarding the Common
Area, (i) Landlord shall make a reasonable effort to minimize any disruption to Tenant’s business,
and (ii) Landlord shall not exercise its rights to control the Common Area in a manner that would
materially interfere with Tenant’s use of the Premises or Tenant’s parking rights. Landlord shall
have no obligation to provide guard services or other security measures for the benefit of the
Project. Tenant assumes all responsibility for the protection of Tenant and Tenant’s Agents from
acts of third parties; provided, however, that nothing contained herein shall prevent Landlord, at
its sole option, from providing security measures for the Project.

ARTICLE 7 WASTE DISPOSAL AND UTILITIES

     7.1 Waste Disposal: Tenant shall store its waste either inside the Premises or within
outside trash enclosures that are fully fenced and screened in compliance with all Private
Restrictions, and designed for such purpose. All entrances to such outside trash enclosures shall
be kept closed, and waste shall be stored in such manner as not to be visible from the exterior of
such outside enclosures. Tenant shall cause all of its waste to be regularly removed from the
Premises at Tenant’s sole cost. Tenant shall keep all fire corridors and mechanical equipment
rooms in the Premises free and clear of all obstructions at all times.

     7.2 Hazardous Materials: Landlord and Tenant agree as follows with respect to the
existence or use of Hazardous Materials on the Project:

          A. Hazardous Materials Disclosure Certificate. Prior to executing this Lease, Tenant
has delivered to Landlord Tenant’s executed initial Hazardous Materials Disclosure Certificate, in
the form attached hereto as Exhibit D (the “Initial Hazardous Materials Certificate”). Tenant
covenants, represents and warrants to Landlord that the information in the Initial Hazardous
Materials Certificate is true and correct and accurately describes the use(s) of Hazardous
Materials which will be made and/or used on the Premises by Tenant. Tenant shall, commencing with
the date which is one year from the Commencement Date and continuing every year thereafter, deliver
to Landlord, an executed and updated Hazardous Materials Disclosure Certificate, substantially in
the form attached hereto as Exhibit D (“the “Annual Hazardous Materials Certificate”) describing
Tenant’s then present use of Hazardous Materials on the Premises, and any other reasonably
necessary documents as requested by Landlord.

15

 

          B. Hazardous Material Usage. Tenant shall not be entitled to use, store, generate,
transport or dispose of any Hazardous Materials (herein referred to as “Hazardous Materials Usage”)
on, in, or about any portion of the Premises and the Project without, in each instance, obtaining
Landlord’s prior written consent thereto in its sole and absolute discretion; provided, however,
that Landlord shall not withhold its consent to Tenant’s use of Hazardous Materials that are
necessary for Tenant’s business so long as Tenant’s use thereof is in compliance with all Laws,
including Hazardous Materials Laws, and Tenant implements measures to ensure that the Project will
not be contaminated by Tenant’s use, storage, generation, transport or disposal of such hazardous
Materials. Any such Hazardous Materials Usage may only be to the extent of the quantities of
Hazardous Materials as specified in the then applicable Hazardous Material Disclosure Certificate
as expressly approved by Landlord. Any Hazardous Material Usage of Hazardous Materials by Tenant
and Tenant’s Agents after the Effective Date in or about the Project shall strictly comply with all
applicable laws, including all Hazardous Materials Laws now or hereinafter enacted. Tenant agrees
that any material changes to the type and/or quantities of Hazardous Materials specified in the
most recent approved Hazardous Material Disclosure Certificate may be implemented only with the
prior written consent of Landlord, which consent may be given or withheld in Landlord’s sole and
absolute discretion (except as expressly provided above). Tenant shall not be entitled nor
permitted to install any tanks under, on or about the Premises or Project for the storage of
Hazardous Materials without the express written consent of Landlord, which may be given or withheld
in Landlord’s sole and absolute discretion.

          C. Tests and Inspections. Landlord shall have the right at all times during the Term
of this Lease to (i) inspect the Premises upon reasonable prior notice, except in case of emergency
which shall require no prior notice, (ii) conduct tests and investigations to determine whether
Tenant is in compliance with the provisions of this Section 7.2 or to determine if Hazardous
Materials are present in, on or about the Project, and (iii) request lists of all Hazardous
Materials used, stored or otherwise located on, under or about any portion of the Premises and/or
the Common Areas on an annual basis unless Landlord has reasonable cause to believe that Tenant is
using Hazardous Materials prohibited by Law or this Lease. The cost of all such inspections, tests
and investigations shall be borne by Landlord unless such tests disclose the existence of facts
which give rise to liability of Tenant pursuant to its indemnity given in Section 7.2.E. The
aforementioned rights granted herein to Landlord and its representatives shall not create (a) a
duty on Landlord’s part to inspect, test, investigate, monitor or otherwise observe the Premises or
the activities of Tenant and Tenant’s Representatives with respect to Hazardous Materials,
including without limitation, Tenant’s operation, use and any remediation related thereto, or (b)
liability on the part of Landlord and its representatives for Tenant’s use, storage, disposal or
remediation of Hazardous Materials, it being understood that Tenant shall be solely responsible for
all liability in connection therewith.

          D. Notice. Tenant shall give to Landlord immediate verbal and follow-up written
notice of any spills, releases, discharges, disposals, emissions, migrations, removals or
transportation of Hazardous Materials on, under or about any portion of the Premises, Common Areas
or Project; provided that Tenant has actual knowledge of such event(s). Tenant, at its sole cost
and expense, covenants and warrants to promptly investigate, clean up, remove, restore and
otherwise remediate (including, without limitation, preparation of any feasibility studies or
reports and the performance of any and all closures) any spill, release, discharge, disposal,
emission, migration or transportation or other Hazardous Material Usage of Hazardous Materials
arising from or related to the acts or omissions of Tenant or Tenant’s Agents such that the
affected portions of the Project and any adjacent property are returned to the condition existing
prior to the appearance of such Hazardous Materials. Any such investigation, clean up, removal,
restoration and other remediation shall only be performed after Tenant has obtained Landlord’s
prior written consent in its sole and absolute discretion. Notwithstanding the foregoing, Tenant
shall be entitled to respond immediately to an emergency without first obtaining Landlord’s prior
written consent. Tenant, at its sole cost and expense, shall conduct and perform, or cause to be
conducted and performed, all closures as required by any Hazardous Materials Laws or any agencies
or other governmental authorities having jurisdiction thereof. If Tenant fails to so promptly
investigate, clean up, remove, restore, provide closure or otherwise so remediate, Landlord may,
but without obligation to do so, take any and all steps necessary to rectify the same and Tenant
shall promptly reimburse Landlord, upon demand, for all costs and expenses to Landlord of
performing investigation, clean up, removal, restoration, closure and remediation work. All such
work undertaken by Tenant, as required herein, shall be

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performed in such a manner so as to enable Landlord to make full economic use of the Premises and
the other portions of the Project after the satisfactory completion of such work.

          E. Indemnity. Tenant shall indemnify, hold harmless, and, at Landlord’s option (with
such attorneys as Landlord may reasonably approve in advance and in writing), defend Landlord and
Landlord’s officers, directors, shareholders, partners, members, managers, employees, contractors,
property managers, agents and mortgagees and other lien holders, from and against any and all
“Losses” (hereinafter defined) arising from or related to: (a) any violation by Tenant or any of
Tenant’s Agents of any of Laws, including, without limitation, Hazardous Materials Laws; (b) any
breach of the provisions of this Section 7.2 or any subsection thereof by Tenant or any of Tenant’s
Agents; or (c) any Hazardous Materials Usage on, about or from the Premises of any Hazardous
Material approved by Landlord under this Lease. The term “Losses” shall mean all claims, demands,
expenses, actions, judgments, damages (whether consequential, direct or indirect, known or unknown,
foreseen or unforeseen), penalties, fines, liabilities, losses of every kind and nature (including,
without limitation, property damage, diminution in value of Landlord’s interest in the Leased
Premises or the Project, damages for the loss or restriction on use of any space or amenity within
the Building or the Project, damages arising from any adverse impact on marketing space in the
Project, sums paid in settlement of claims and any costs and expenses associated with injury,
illness or death to or of any person), suits, administrative proceedings, costs and fees,
including, but not limited to, reasonable attorneys’ and consultants’ fees and expenses, and the
costs of cleanup, remediation, removal and restoration, that are in any way related to any matter
covered by the foregoing indemnity. The foregoing indemnity will not be applicable for any
Hazardous Materials Usage by Landlord or any other party other than Tenant or any of Tenant’s
Agents, except for the release or disposal by a third party (other than Landlord) of any Hazardous
Materials used, stored or generated in Tenant’s business at the Premises.

          F. Hazardous Material. As used herein, the term “Hazardous Material,” means any
hazardous or toxic substance, material or waste which is or becomes regulated by any local
governmental authority, the State of California or the United States Government or under any
Hazardous Material Law. The term “Hazardous Material,” includes, without limitation, petroleum
products, asbestos, PCB’s, and any material or substance which is (i) listed under Article 9 or
defined as hazardous or extremely hazardous pursuant to Article 11 of Title 22 of the California
Administrative Code, Division 4, Chapter 20, (ii) defined as a “hazardous waste” pursuant to
Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq. (42
U.S.C. 6903), or (iii) defined as a “hazardous substance” pursuant to Section 101 of the
Comprehensive Environmental Response; Compensation and Liability Act, 42 U.S.C. 9601 et seq. (42
U.S.C. 9601). As used herein, the term “Hazardous Material Law” shall mean any statute, law,
ordinance, or regulation of any governmental body or agency (including the U.S. Environmental
Protection Agency, the California Regional Water Quality Control Board, and the California
Department of Health Services) which regulates the use, storage, release or disposal of any
Hazardous Material.

          G. Representations of Landlord. To the actual knowledge of Landlord, except as may be
disclosed that certain Phase I Environmental Site Assessment dated June 30, 2000, prepared by
ARCADIS Geraghty & Miller, Inc. (the “Environmental Report”), a copy of which has been made
available to Tenant, (a) no Hazardous Materials are present in violation of any applicable
Hazardous Materials Law on the Project or the soil, surface water or groundwater thereof, (b) no
underground storage tanks or asbestos containing building materials are present on the Premises,
and (c) no action, proceeding, or claim is pending or threatened involving the Project concerning
any Hazardous Materials or pursuant to any applicable Hazardous Materials Laws. Under no
circumstance shall Tenant be liable for or indemnify Landlord from any losses, costs, claims,
liabilities or damages (including attorneys’ and consultants’ fees) arising out of any Hazardous
Materials present at any time on or about the Premises or Project, or the violation of any
Hazardous Materials Laws, except to the extent that any of the foregoing actually results from the
release, disposal, generation, storage or use of Hazardous Materials by Tenant or Tenant’s Agents.

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          H. Survival. The obligations of Landlord and Tenant under this Section 7.2 shall
survive the expiration or earlier termination of the Lease Term. The rights and obligations of
Landlord and Tenant with respect to issues relating to Hazardous Materials are exclusively
established by this Section 7.2. In the event of any inconsistency between any other part of this
Lease and this Section 7.2, the terms of this Section 7.2 shall control.

     7.3 Utilities: Tenant shall promptly pay, as the same become due, all charges for
water, gas, electricity, telephone, sewer service, waste pick-up and any other utilities, materials
or services furnished directly to or used by Tenant on or about the Premises during the Lease Term,
including, without limitation, (i) meter, use and/or connection fees, hook-up fees, or standby fee
(excluding any connection fees or hook-up fees which relate to making the existing electrical, gas,
and water service available to the Premises as of the Commencement Date), and (ii) penalties for
discontinued or interrupted service. If utility services to the Premises are discontinued for
three (3) consecutive business days and (i) such discontinuance is caused by the negligence or
willful misconduct of Landlord or any of its agents, employees or contractors, then Tenant shall be
entitled to an abatement of Base Monthly Rent and Additional Rent in proportion to the extent to
which the failure prevents Tenant from using the Premises for Tenant’s normal purposes, with such
abatement to begin on the fourth (4th) business day after such occurrence and continuing until such
failure has been cured; or (ii) as a result of such discontinuance, Tenant is prevented from
conducting all or any portion of its business operations in the Premises, and the cause of such
discontinuance is covered by any loss of rental or other similar insurance coverage that Landlord
is then carrying with respect to the Building (it being understood that Landlord has no obligation
to maintain such coverage), then Tenant shall be entitled to an abatement of Base Monthly Rent and
Additional Rent equal to the insurance proceeds actually received by Landlord with respect to the
Premises from the insurance carrier providing such insurance coverage.

     7.4 Compliance with Governmental Regulations: Landlord and Tenant shall comply with
all rules, regulations and requirements promulgated by national, state or local governmental
agencies or utility suppliers concerning the use of utility services, including any rationing,
limitation or other control. Tenant shall not be entitled to terminate this Lease nor to any
abatement in rent by reason of such compliance.

ARTICLE 8 COMMON OPERATING EXPENSES

     8.1 Tenant’s Obligation to Reimburse: As Additional Rent, Tenant shall pay Tenant’s
Share (specified in Section G of the Summary) of all Common Operating Expenses; including
(a) all Common Operating Expenses paid with respect to the maintenance, repair, replacement and use
of the Building, and (b) all Common Operating Expenses which relate to the Project (provided,
however, if the Project contains more than one building, then Tenant shall pay Tenant’s Share of
all Common Operating Expenses fairly allocable to the Building in general are not fairly allocable
to any one building that is part of the Project). Tenant shall pay such share of the actual Common
Operating Expenses incurred or paid by Landlord but not theretofore billed to Tenant within 10 days
after receipt of a written bill therefor from Landlord, on such periodic basis as Landlord shall
designate, but in no event more frequently than once a month. Alternatively, Landlord may from
time to time require that Tenant pay Tenant’s Share of Common Operating Expenses in advance in
estimated monthly installments, in accordance with the following: (i) Landlord shall deliver to
Tenant Landlord’s reasonable estimate of the Common Operating expenses it anticipates will be paid
or incurred for the Landlord’s fiscal year in question; (ii) during such Landlord’s fiscal year
Tenant shall pay such share of the estimated Common Operating Expenses in advance in monthly
installments as required by Landlord due with the installments of Base Monthly Rent; and (iii)
within 180 days after the end of each Landlord’s fiscal year, Landlord shall furnish to Tenant a
statement in reasonable detail of the actual Common Operating Expenses paid or incurred by Landlord
during the just ended Landlord’s fiscal year (the “Annual Reconciliation Statement”) and thereupon
there shall be an adjustment between Landlord and Tenant, with payment to Landlord or credit by
Landlord against the next installment of Base Monthly Rent, as the case may require, within 30 days
after delivery by Landlord to Tenant of said statement, so that Landlord shall receive the entire
amount of Tenant’s Share of all Common Operating Expenses for such Landlord’s fiscal year and no
more. The failure of Landlord

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to deliver of such annual reconciliation statement within said 180-day period under clause (iii)
above shall not constitute a waiver or otherwise release a party from its obligation to make a
payment or credit when such reconciliation is actually done. As provided in Section 8.2A below,
Tenant shall have the right at its expense, to inspect Landlord’s books and records as they relate
to Common Operating Expenses. Tenant may not withhold payment of such bill pending completion of
such inspection. Landlord and Tenant shall each use their best efforts to cooperate with each
other to resolve any discrepancies between Landlord and Tenant in the accounting of Common
Operating Expenses.

          A. Inspection. Tenant shall have the right at its own expense to inspect the books
and records of Landlord pertaining to Common Operating Expenses, once in any calendar year by any
employee of Tenant or by a certified public accountant mutually acceptable to Landlord and Tenant
(provided such certified public accountant charges for its service on an hourly basis and not based
on a percentage of any recovery or similar incentive method) at reasonable times. Within 180 days
after receipt of Landlord’s annual reconciliation, Tenant shall have the right, after at least ten
(10) days prior written notice to Landlord, to inspect at the offices of Landlord or its property
manager, the books and records of Landlord pertaining solely to the Common Operating Expenses for
the immediately preceding calendar year covered in such annual reconciliation statement. All
expenses of the inspection shall be borne by Tenant and must be completed within 30 days after
commencement of the inspection. If Tenant’s inspection reveals a discrepancy in the comparative
annual reconciliation statement, Tenant shall deliver a copy of the inspection report and
supporting calculations to Landlord within 30 days after completion of the inspection. If Tenant
and Landlord are unable to resolve the discrepancy within 30 days after Landlord’s receipt of the
inspection report, either party may upon written notice to the other have the matter decided by an
inspection by an the independent certified public accounting firm approved by Tenant and Landlord
(the “CPA Firm”), which approval shall not be unreasonably withheld or delayed. If the inspection
by the CPA Firm shows that the actual amount of Common Operating Expenses payable by Tenant is
greater than the amount previously paid by Tenant for such accounting period, Tenant shall
immediately pay Landlord the difference, if the inspection by the CPA Firm shows that the actual
amount is less than the amount paid by Tenant, then the difference shall be applied in payment of
the next estimated monthly installments of Common Operating Expenses owing by Tenant, or in the
event such accounting occurs following the expiration of the Term hereof, such difference shall be
refunded to Tenant. Tenant shall pay for the cost of the inspection by the CPA Firm, unless such
inspection shows that Landlord overstated Common Operating Expenses by more than five percent (5%),
in which case Landlord shall pay for the cost of the inspection by the CPA Firm.

     8.2 Common Operating Expenses Defined: The term “Common Operating Expenses” shall
mean the total amounts paid or payable, whether by Landlord or others on behalf of Landlord, in
connection with the ownership, maintenance, repair, and operations of the Building, the Common
Areas and the Project, including without limitation, the
following:

          A.    All
costs and expenses paid or incurred by Landlord in doing the
following (including payments to independent contractors providing
services related to the performance of the following): (i)
maintaining, cleaning, repairing and (ii) maintenance of the
liability, fire, property damage, and other insurance covering the
Project carried by Landlord pursuant to Section 9.2 (including the
prepayment of premiums for coverage of up to one year, provided that
Tenant shall not be responsible for any premiums relating to any time
period for which Tenant is not obligated to pay its share of Common
Operating Expenses hereunder); (iii) maintaining, repairing,
operating and replacing when necessary HVAC equipment, utility
facilities and other building service equipment; (iv) providing
utilities to the Common Area (including lighting, trash removal and
water for landscaping irrigation); (v) complying with all applicable
Laws and Private Restrictions, subject to the provisions of Section
5.4; (vi) operating, maintaining, repairing, cleaning, painting,
re-striping and resurfacing the Common Area; (vii) replacement or
installation of lighting fixtures, directional or other signs and
signals, irrigation systems, trees, shrubs, ground cover and other
plant materials, and all landscaping in the Common Area; and (viii)
providing security (provided, however, that Landlord shall

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not be obligated to provide security and if it does, Landlord may discontinue such service at any
time and in any event Landlord shall not be responsible for any act or omission of any security
personnel); and (ix) capital improvements as provided in Section 5.4 hereof;

          B. The following costs: (i) Real Property Taxes as defined in Section 8.3; (ii) the amount of
any “deductible” paid by Landlord with respect to damage caused by any Insured Peril (Tenant’s
Share of which shall in no event exceed $10,000 for each claim if the damage was caused by Tenant
or any of Tenant’s Agents); and (iii) paid to or on behalf of employees of Landlord but only to the
extent they are involved in the performance of the work described by Section 8.2A that is fairly
allocable to the Project;

          C. Fees for management services rendered by either Landlord or a third party manager engaged
by Landlord (which may be a party affiliated with Landlord), except that the total amount charged
for management services and included in Tenant’s Share of Common Operating Expenses shall not
exceed the monthly rate of 3% of the Rent.

          D. All additional costs and expenses incurred by Landlord with respect to the operation,
protection, maintenance, repair and replacement of the Project which would be considered a current
expense (and not a capital expenditure) pursuant to generally accepted accounting principles;
provided, however, that Common Operating Expenses shall not include any of the following:

               (i) payments on any loans or ground leases affecting the Project;

               (ii) depreciation of any buildings or any major systems of building service equipment within
the Project;

               (iii) leasing commissions;

               (iv) the cost of tenant improvements installed for the exclusive use of other tenants of the
Project;

               (v) any cost incurred in complying with Hazardous Materials Laws or incurred in connection
with the presence of any Hazardous Materials, except to the extent caused by the release or
emission of the Hazardous Materials in question by Tenant, which subject is governed exclusively by
Section 7.2;

               (vi) costs occasioned by the violation of any Laws by Landlord, any other occupant of the
Project, or their respective agents, employees or contractors;

               (vii) costs occasioned by fire, acts of God, or other casualties or by the exercise of the
power of eminent domain, except for Tenant’s obligation as provided in Section 8.2B above;

               (viii) costs to correct any construction defect in the structural parts of Premises or the
Project or to comply with any Laws on the Commencement Date, except if such compliance work is
required due to any Tenant Alteration or Tenant’s particular use or the manner in which it conducts
its business therein;

               (ix) costs incurred in connection with negotiations or disputes with any other occupant of the
Project and costs arising from the violation by Landlord or any occupant of the Project (other than
Tenant) of the terms and conditions of any lease or other agreement;

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               (x) costs of any improvement, alteration, addition, change, replacement, extraordinary repair,
and any other item that under generally accepted accounting principles are properly classified as
capital expenditures, except pursuant to Section 5.4 and 6.1;

               (xi) costs relating to the repair, maintenance and replacement of the structural elements of
the Building or the Project, including, without limitation, exterior and load bearing walls, the
roof structure (but not the roof membrane which may be included in Common Operating Expenses), the
foundation, structural floors and columns;

               (xii) depreciation, amortization or other expense reserves other than reserves for expenses
for anticipated expenses and which reserves are applied to Common Operating Expenses in said
calendar year;

               (xiii) costs related to the alteration, repair, replacement or improvement of any building in
the Project other than the Building;

               (xiv) advertising or promotional costs;

               (xv) costs for which Landlord has a right of and has received reimbursement from other tenants
at the Project;

               (xvi) except for management fees, Landlord’s general overhead and any overhead or profit
increment to any subsidiary or affiliate of Landlord for services on or to the Building, Common
Areas, and/or the Project, to the extent that the cost of such service exceeds competitive costs
for such services rendered by persons or entities of similar skill, competence and experience other
than a subsidiary or affiliate of Landlord;

               (xvii) any costs or expenses representing any amount paid for services and materials to a
(personal or business) related person, firm, or entity to the extent such amount exceeds the amount
that would have been paid for such service or materials at the then existing market rates in the
absence of such relationship;

               (xviii) compensation paid to any employee of Landlord above the grade of regional property
manager/building superintendent, including officers and executives of Landlord; which are for
services of the type above the type of service that would be typically performed by a building
manager, property manager, or regional property manager regardless of the actual title of the
person performing such service;

               (xix) amounts reimbursed or costs covered pursuant to contractor’s or manufacturer’s
warranties or guarantees; provided that any charges for obtaining or maintaining such warranties or
guarantees or enforcing warranty or guarantee claims shall be included in Common Operating
Expenses, but Landlord shall not be obligated to commence any suit or arbitration proceeding to
enforce or collect any such warranty or guarantee claims and if Landlord determines it is not
reasonably prudent to pursue enforcement of such warranties or guaranties, Landlord will not be
obligated to pursue such enforcement;

               (xx) the costs and expenses incurred in leasing equipment or systems that would ordinarily
constitute a capital expenditure if such equipment or systems were purchased and which would
customarily be purchased by other institutional owners of comparable property;

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               (xxi) the costs of any work or service performed for any building other than the building;

               (xxii) interest or penalties due to the late payment of taxes, utility bills or other such
costs; and

               (xxiii) any cost for overtime or other expenses to Landlord in curing defaults.

     Common Operating Expenses for any calendar year shall be calculated on the basis of the
greater of (i) actual Common Operating Expenses; or (ii) as if the Building were at least
ninety-five percent (95%) leased and occupied for the whole year, in order for there to be a proper
adjustment to consider variable costs included within Common Operating Expenses that fluctuate with
occupancy. Landlord will not collect more than 100% of the Common Operating Expenses for any
applicable year, but the parties understand that Common Operating Expenses are billed and paid on
an estimated basis and any overpayment or underpayment is subject to an annual reconciliation as
provided in Section 8.1 above.

     8.3 Real Property Taxes Defined: The term “Real Property Taxes” or “Taxes” shall mean
all taxes, assessments, levies, and other charges of any kind or nature whatsoever, general and
special, foreseen and unforeseen (including all installments of principal and interest required to
pay any existing or future general or special assessments for public improvements, services or
benefits, and any increases resulting from reassessments resulting from a change in ownership, new
construction, or any other cause), now or hereafter imposed by any governmental or
quasi-governmental authority or special district having the direct or indirect power to tax or levy
assessments, which are levied or assessed against, or with respect to the value, occupancy or use
of all or any portion of the Project (as now constructed or as may at any time hereafter be
constructed, altered, or otherwise changed) or Landlord’s interest therein, the fixtures, equipment
and other property of Landlord, real or personal, that are an integral part of and located on the
Project, the gross receipts, income, or rentals from the Project, or the use of parking areas,
public utilities, or energy within the Project, or Landlord’s business of leasing the Project. If
at any time during the Lease Term the method of taxation or assessment of the Project prevailing as
of the Effective Date shall be altered so that in lieu of or in addition to any Real Property Tax
described above there shall be levied, assessed or imposed (whether by reason of a change in the
method of taxation or assessment, creation of a new tax or charge, or any other cause) an alternate
or additional tax or charge (i) on the value, use or occupancy of the Project or Landlord’s
interest therein, or (ii) on or measured by the gross receipts, income or rentals from the Project,
on Landlord’s business of leasing the Project, or computed in any manner with respect to the
operation of the Project, then any such tax or charge, however designated, shall be included within
the meaning of the term “Real Property Taxes” for purposes of this Lease. If any Real Property Tax
is based upon property or rents unrelated to the Project, then only that part of such Real Property
Tax that is fairly allocable to the Project shall be included within the meaning of the term “Real
Property Taxes”. Notwithstanding the foregoing, the term “Real Property Taxes” shall not include
(i) estate, inheritance, transfer, gift or franchise taxes of Landlord or the federal, state or
local net income tax imposed on Landlord’s income from all sources, (ii) any federal, state or
local sales or transfer tax (but increases in Real Property Taxes due to a change in ownership will
be included) , (iii) penalties and interest, other than those attributable to Tenant’s failure to
comply timely with its obligations pursuant to this Lease, and (iv) taxes or assessments in excess
of the amount which would be payable if such tax or assessment expense were paid in installments
over the longest possible applicable permitted term.

     8.4 Adjustments. Notwithstanding the foregoing provisions, Tenant’s Share as to
certain expenses included in Common Operating Expenses may be calculated differently to yield a
higher percentage share for Tenant as to those expenses if Landlord permits other tenants or
occupants in the Project to incur such expenses directly rather than have Landlord incur the
expense in common for the Project. In such case, Tenant’s Share of the applicable expense shall be
calculated as having as its denominator the sum of the gross leasable areas of all premises in the
Project less the gross leasable areas of tenants who have incurred such expense directly.
Nothing herein shall imply that Landlord will permit Tenant or any other tenant of the Project to
incur Common Area Costs. Any such permission shall be in the sole discretion of Landlord.

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ARTICLE 9 INSURANCE

     9.1 Tenant’s Insurance: Tenant shall maintain insurance complying with all of the following:

          A. Types. Tenant shall procure, pay for and keep in full force and effect the
following:

               (1) Commercial general liability insurance, including property damage, against liability for
personal injury, bodily injury, death and damage to property occurring in or about, or resulting
from an occurrence in or about, the Premises with combined single limit coverage of not less than
the amount of Tenant’s Liability Insurance Minimum specified in Section P of the Summary,
which insurance shall contain a “contractual liability” endorsement insuring Tenant’s performance
of Tenant’s obligation to indemnify Landlord contained in Section 10.3;

               (2) Fire and property damage insurance on a special form or equivalent form insuring Tenant’s
Trade Fixtures and Tenant’s Alterations for the full actual replacement cost thereof;

               (3) Business interruption insurance with limits of liability representing at least
approximately six months of income; business auto liability covering owned, non-owned and hired
vehicles with a limit of not less than $1,000,000 per accident, insurance protecting against
liability under workers’ compensation laws with limits at least as required by statute, and such
other insurance that is either reasonably required by any Lender, or reasonably required by
Landlord and customarily carried by tenants of similar property in similar businesses.
Notwithstanding the foregoing, the original party signing this Lease as Tenant and any affiliate
thereof may elect to not to carry such business interruption insurance and thereby self insure for
such risk, but no such self-insurance shall diminish the rights and privileges to which Landlord
would otherwise have been entitled under the terms of the Lease had there been a third party
insurer, including, without limitation, the waiver of subrogation.

          B. Requirements. Where applicable and required by Landlord, each policy of insurance
required to be carried by Tenant pursuant to this Section 9.1: (i) shall name Landlord and such
other parties in interest as Landlord reasonably designates as additional insured; (ii) shall be
primary insurance which provides that the insurer shall be liable for the full amount of the loss
up to and including the total amount of liability set forth in the declarations for matters covered
thereunder for the insured and all additional insureds named therein without the right of
contribution from any other insurance coverage of Landlord; (iii) shall be in a form reasonably
satisfactory to Landlord; (iv) shall be carried with companies having an AM Best Rating of at least
A-VII; (v) shall provide that such policy shall not be subject to cancellation or lapse except
after at least 30 days prior written notice to Landlord so long as such provision of 30 days notice
is reasonably obtainable, but in any event not less than 10 days prior written notice; (vi) shall
not have a deductible in excess $10,000; (vii) shall contain a cross liability endorsement; and
(viii) shall contain a “severability” clause. If Tenant has in full force and effect a blanket
policy of liability insurance with the same coverage for the Premises as described above, as well
as other coverage of other premises and properties of Tenant, or in which Tenant has some interest,
such blanket insurance shall satisfy the requirements of this Section 9.1.

          C. Evidence. A copy of each paid-up certificate of insurance evidencing the insurance
required to be carried by Tenant pursuant to this Section 9.1 (appropriately authenticated by the
insurer) or a certificate of the insurance, certifying that such policy has been issued, providing
the coverage required by this Section 9.1, and containing the provisions specified herein, shall be
delivered to Landlord prior to the time Tenant or any of its Agents enters the Premises and upon
renewal of such policies, but not less than 5 days prior to the expiration of the term of such
coverage. Landlord shall have the right to inspect and copy Tenant’s insurance policy when there
has been a claim affecting Tenant and for which the insurance carrier has denied coverage.

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     9.2 Landlord’s Insurance: Landlord shall have the following obligations and options
regarding insurance:

          A. Property Damage. Landlord shall maintain a policy or policies of fire and property
damage insurance in so-called “all risk” form insuring Landlord (and such others as Landlord may
designate) against loss of rents for a period of not less than 12 months and from physical damage
to the Project with coverage of not less than the full replacement cost thereof. Landlord may so
insure the Project separately, or may insure the Project with other property owned by Landlord
which Landlord elects to insure together under the same policy or policies. Landlord shall have
the right, but not the obligation, in its sole and absolute discretion, to obtain insurance for
such additional perils as Landlord deems appropriate, including, without limitation, coverage for
damage by earthquake and/or flood, provided that insurance is available at commercially reasonable
cost based on such insurance for coverage in the San Francisco Bay Area or is required by
Landlord’s Lender. All such coverage shall contain “deductibles, “ which Landlord deems
appropriate, which in the case of earthquake and flood insurance, may be up to 10% of the
replacement value of the property insured or such higher amount as is then commercially reasonable.
Landlord shall not be required to cause such insurance to cover any Trade Fixtures or Tenant’s
Alterations of Tenant.

          B. Other. Landlord shall maintain a policy or policies of commercial general
liability insurance insuring Landlord (and such others as are designated by Landlord) against
liability for personal injury, bodily injury, death and damage to property occurring or resulting
from an occurrence in, on or about the Project, with combined single limit coverage in such amount
as Landlord from time to time determines is reasonably necessary for its protection.

     9.3 Release and Waiver of Subrogation: Notwithstanding anything to the contrary
contained herein the parties hereto release each other, and their respective agents, sublessees,
employees, and contractors from any liability for injury to any person or damage to property that
is caused by or results from any risk insured against under any valid and collectible property
damage insurance policy actually carried or required to be carried by either of the parties under
this Lease; subject to the following limitations: (i) the foregoing provision shall not apply to
the commercial general liability insurance described by subparagraphs Section 9.1A and Section
9.2B; and (ii) such release shall apply to liability resulting from any risk insured against or
covered by self-insurance maintained or provided by Tenant to satisfy the requirements of Section
9.1 to the extent permitted by this Lease. Each party shall cause each property damage insurance
policy obtained by it to provide that the insurer waives all right of recovery by way of
subrogation against the other party and its agents, sublessees and employees in connection with any
injury or damage covered by such policy.

ARTICLE 10 LIMITATION ON LANDLORD’S LIABILITY AND INDEMNITY

     10.1 Limitation on Landlord’s Liability: Landlord shall not be liable to Tenant, nor
shall Tenant be entitled to terminate this Lease or to any abatement of rent (except as expressly
provided otherwise herein), for any damage to the property of Tenant or Tenant’s Agents, or loss to
Tenant’s business resulting from any cause, including without limitation any: (i) failure,
interruption or installation of any HVAC or other utility system or service; (ii) failure to
furnish or delay in furnishing any utilities or services when such failure or delay is caused by
fire or other peril, the elements, labor disturbances of any character, or any other accidents or
other conditions beyond the reasonable control of Landlord; (iii) limitation, curtailment,
rationing or restriction on the use of water or electricity, gas or any other form of energy or any
services or utility serving the Project; (iv) vandalism or forcible entry by unauthorized persons
or the criminal act of any person; or (v) penetration of water into or onto any portion of the
Premises or the Building through roof leaks or otherwise. Notwithstanding the foregoing but
subject to Section 9.3, Landlord shall be liable for any such injury, damage or loss which is
proximately caused by Landlord’s or Landlord’s Agents’ willful misconduct or gross negligence of
which Landlord has actual notice and a reasonable opportunity to cure but which it fails to so
cure.

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     10.2 Limitation on Tenant’s Recourse: If Landlord is a corporation, trust,
partnership, joint venture, unincorporated association or other form of business entity: (i) the
obligations of Landlord shall not constitute personal obligations of the officers, directors,
trustees, partners, joint venturers, members, owners, stockholders, or other principals or
representatives of such business entity; and (ii) Tenant shall not have recourse to the assets of
such officers, directors, trustees, partners, joint venturers, members, owners, stockholders,
principals or representatives except to the extent of their interest in the Project. Tenant shall
have recourse only to the interest of Landlord in the Project (including all prepaid rent,
insurance and condemnation proceeds with respect to the Project) for the satisfaction of the
obligations of Landlord and shall not have recourse to any other assets of Landlord for the
satisfaction of such obligations.

     10.3 Indemnification: Tenant shall hold harmless, indemnify and defend Landlord, and
its employees, agents and contractors, with competent counsel reasonably satisfactory to Landlord
(and Landlord agrees to accept counsel that any insurer requires be used), from all liability,
penalties, losses, damages, costs, expenses, causes of action, claims and/or judgments arising by
reason of any death, bodily injury, personal injury or property damage to the extent resulting from
(i) the negligence or willful misconduct of Tenant or its Agents, wherever the same may occur, or
(ii) any breach of this Lease by Tenant or an Event of Tenant’s Default. Landlord shall indemnify,
defend, protect and hold harmless Tenant from, all losses, damages, liabilities, judgments,
actions, claims, attorneys’ fees, consultants’ fees, payments, costs and expenses arising from the
gross negligence or willful misconduct of Landlord, or Landlord’s Agents, Landlord’s violation of
any Law or Private Restrictions, or a breach of Landlord’s obligations or representations under
this Lease. The provisions of this Section 10.3 shall survive the expiration or sooner termination
of this Lease.

ARTICLE 11 DAMAGE TO PREMISES

     11.1 Landlord’s Duty to Restore: If the Premises are damaged by any peril after the
Effective Date, Landlord shall restore the Premises unless the Lease is terminated by Landlord
pursuant to Section 11.2 or by Tenant pursuant to Section 11.3. All insurance proceeds available
from the fire and property damage insurance carried by Landlord pursuant to Section 9.2 shall be
paid to and become the property of Landlord. If this Lease is terminated pursuant to either
Section 11.2 or Section 11.3, then all insurance proceeds available from insurance carried by
Tenant which covers loss to property that is Landlord’s property or would become Landlord’s
property on termination of this Lease shall be paid to and become the property of Landlord. If
this Lease is not so terminated, then upon the issuance of all necessary governmental permits,
Landlord shall commence and diligently prosecute to completion the restoration of the Premises, to
the extent then allowed by Law, to substantially the same condition in which the Premises were
immediately prior to such damage. Landlord’s obligation to restore shall be limited to the
Premises and interior improvements constructed by Landlord as they existed as of the Commencement
Date, excluding any Tenant’s Alterations, Trade Fixtures and/or personal property constructed or
installed by Tenant in the Premises. Tenant shall forthwith replace or fully repair all Tenant’s
Alterations and Trade Fixtures installed by Tenant and existing at the time of such damage or
destruction, and all insurance proceeds received by Tenant from the insurance carried by it
pursuant to Section 9.1A(2) shall be used for such purpose.

     11.2 Landlord’s Right to Terminate: Landlord shall have the right to terminate this
Lease in the event any of the following occurs, which right may be exercised only by delivery to
Tenant of a written notice of election to terminate within 30 days after the date of such damage:

          A. Damage From Insured Peril. The Building is damaged by an Insured Peril to such an
extent that the estimated cost to restore exceeds 50% of the then actual replacement cost thereof;

          B. Damage From Uninsured Peril. The Building is damaged by an Uninsured Peril to such
an extent that the estimated cost to restore exceeds 2% of the then actual replacement cost
thereof; provided, however, that Landlord may not terminate this Lease pursuant to this Section
11.2B if one or more tenants of the Building agree in writing to pay the amount by which the cost
to restore the damage exceeds such

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amount and subsequently deposit such amount with Landlord within 30 days after Landlord has
notified Tenant of its election to terminate this Lease;

          C. Damage Near End of Term. The Premises are damaged by any peril within 12 months of
the last day of the Lease Term to such an extent that the estimated cost to restore equals or
exceeds an amount equal to six times the Base Monthly Rent then due; provided, however, that
Landlord may not terminate this Lease pursuant to this Section 11.2C if Tenant, at the time of such
damage, has a then valid express written option to extend the Lease Term and Tenant exercises such
option to extend the Lease Term within 15 days following the date of such damage; or

          D. Restrictions on Restoration. The Building is damaged by any peril and, because of
the Laws then in force, (i) cannot be restored at reasonable cost to substantially the same
condition in which it was prior to such damage, or (ii) cannot be used for the same use being made
thereof before such damage if restored as required by this Article; provided that if Building
Ordinance coverage could have been obtained by Landlord at a reasonable cost and the Building could
have been restored with such coverage to substantially the same condition as existed prior to such
damage for similar uses, then Landlord shall not have the right to terminate the Lease.

          E. Defined Terms. As used herein, the following terms shall have the following
meanings: (i) the term “Insured Peril” shall mean a peril actually insured against or required to
be insured against by Landlord under this Lease and for which there are sufficient insurance
proceeds available (or would have been available if Landlord carried the insurance required under
this Lease), except for any deductible amount specified by such insurance, to restore the damaged
property; and (ii) the term “Uninsured Peril” shall mean any peril which is not an Insured Peril.
Notwithstanding the foregoing, if the “deductible” for earthquake or floor insurance exceeds 5% of
the replacement cost of the improvements insured, such period shall be deemed an “Uninsured Peril”.

     11.3 Tenant’s Right to Terminate: If the Premises are damaged by any peril and
Landlord does not elect to terminate this Lease or is not entitled to terminate this Lease pursuant
to Section 11.2, then as soon as reasonably practicable, Landlord shall furnish Tenant with the
written opinion of Landlord’s architect or construction consultant as to when the restoration work
required of Landlord may be completed. Tenant shall have the right to terminate this Lease in the
event any of the following occurs, which right may be exercised only by delivery to Landlord of a
written notice of election to terminate within 15 days after Tenant receives from Landlord the
estimate of the time needed to complete such restoration.

          A. Major Damage. The Premises or portion of the Building that affects Tenant’s access
to the Premises or use of Common Areas or Building systems are damaged by any peril and, in the
reasonable opinion of Landlord’s architect or construction consultant, the restoration of the
Premises cannot be substantially completed within 270 days after the date of such damage; or

          B. Damage Near End of Term. The Premises or portion of the Building that affects
Tenant’s access to the Premises or use of Common Areas or Building systems are damaged by any peril
within 12 months of the last day of the Lease Term and, in the reasonable opinion of Landlord’s
architect or construction consultant, the restoration of the Premises cannot be substantially
completed within 90 days after the date of such damage and such damage renders unusable more than
10% of the Premises or any material portion of the Premises (such as the clean room).

          C. Failure to Complete Restoration. Notwithstanding the foregoing or anything to the
contrary in this Lease, if for any reason the Premises and or portion of the Building that affects
Tenant’s access to the Premises or use of Common Areas or Building systems are not fully restored
within one (1) year after the date of the casualty, then Tenant may terminate this Lease if
Landlord fails to restore the Premises or portion of the Building within thirty (30) days after
Landlord’s receipt of a written notice of termination from Tenant.

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     11.4 Abatement of Rent: In the event of damage to the Premises or parking areas in
the Common Areas to such an extent that Tenant’s allocable share of parking spaces is materially
reduced and not replaces with reasonable substitute parking, the Base Monthly Rent and the
Additional Rent shall be temporarily abated during the period of restoration in proportion to the
degree to which Tenant’s use of the Premises or the parking is impaired by such damage. Neither
Tenant nor Landlord shall be entitled to any compensation or damages from the other party for loss
of business or property or for any inconvenience or annoyance caused by such damage or restoration.
Tenant hereby waives the provisions of California Civil Code Sections 1932(2) and 1933(4) and the
provisions of any similar law hereinafter enacted.

ARTICLE 12 CONDEMNATION

     12.1 Landlord’s Termination Right: Landlord shall have the right to terminate this
Lease if, as a result of a taking by means of the exercise of the power of eminent domain
(including a voluntary sale or transfer by Landlord to a condemnor under threat of condemnation),
(i) all of the Premises is so taken, (ii) more than 10% of the Building Leasable Area is so taken,
or (iii) more than 50% of the Common Area is so taken. Any such right to terminate by Landlord
must be exercised within a reasonable period of time, to be effective as of the date possession is
taken by the condemnor.

     12.2 Tenant’s Termination Right: Tenant shall have the right to terminate this Lease
if, as a result of any taking by means of the exercise of the power of eminent domain (including
any voluntary sale or transfer by Landlord to any condemnor under threat of condemnation), (i) 10%
or more or any material portion of the Premises is so taken and that part of the Premises that
remains cannot be restored within a reasonable period of time and thereby made reasonably suitable
for the continued operation of the Tenant’s business, or (ii) there is a taking affecting the
Common Area and, as a result of such taking, Landlord cannot provide parking spaces within
reasonable walking distance of the Premises equal in number to at least 80% of the number of spaces
allocated to Tenant by Section 2.1, whether by rearrangement of the remaining parking areas in the
Common Area (including construction of multi-deck parking structures or re-striping for compact
cars where permitted by Law) or by alternative parking facilities on other land. Tenant must
exercise such right within a reasonable period of time, to be effective on the date that possession
of that portion of the Premises or Common Area that is condemned is taken by the condemnor.

     12.3 Restoration and Abatement of Rent: If any part of the Premises or the Common
Area is taken by condemnation and this Lease is not terminated, then Landlord shall restore the
remaining portion of the Premises and Common Area and interior improvements constructed by Landlord
as they existed as of the Commencement Date, excluding any Tenant’s Alterations, Trade Fixtures
and/or personal property constructed or installed by Tenant. Thereafter, except in the case of a
temporary taking, as of the date possession is taken the Base Monthly Rent and Additional Rent
shall be reduced in the same proportion that the floor area of that part of the Premises so taken
(less any addition thereto by reason of any reconstruction) bears to the original floor area of the
Premises.

     12.4 Temporary Taking: If any portion of the Premises is temporarily taken for one
year or less, this Lease shall remain in effect. If any portion of the Premises is temporarily
taken by condemnation for a period which exceeds one year or which extends beyond the natural
expiration of the Lease Term, and such taking materially and adversely affects Tenant’s ability to
use the Premises for the Permitted Use, then Tenant shall have the right to terminate this Lease,
effective on the date possession is taken by the condemnor.

     12.5 Division of Condemnation Award: Any award made as a result of any condemnation
of the Premises or the Common Area shall belong to and be paid to Landlord, and Tenant hereby
assigns to Landlord all of its right, title and interest in any such award; provided, however, that
Tenant shall be entitled to receive any condemnation award that is made directly to Tenant for the
following: (i) for the taking of personal property or Trade Fixtures belonging to Tenant, (ii) for
the interruption of Tenant’s business or its moving costs,

27

 

(iii) for loss of Tenant’s goodwill; or (iv) for any temporary taking where this Lease is not
terminated as a result of such taking. The rights of Landlord and Tenant regarding any
condemnation shall be determined as provided in this Article, and each party hereby waives the
provisions of California Code of Civil Procedure Section 1265.130 and the provisions of any similar
law hereinafter enacted allowing either party to petition the Superior Court to terminate this
Lease in the event of a partial taking of the Premises.

ARTICLE 13 DEFAULT AND REMEDIES

     13.1 Events of Tenant’s Default: Tenant shall be in default of its obligations under
this Lease if any of the following events occurs (an “Event of Tenant’s Default”):

          A. Payment. Tenant shall have failed to pay Base Monthly Rent or Additional Rent when
due, and such failure is not cured within 3 days after delivery of written notice from Landlord
specifying such failure to pay; or

          B. General Covenant. Tenant shall have failed to perform any term, covenant, or
condition of this Lease other than those referred to in any other subsection of this Section 13.1,
and Tenant shall have failed to cure such breach within 30 days after written notice from Landlord
specifying the nature of such breach where such breach could reasonably be cured within said 30 day
period, or if such breach could not be reasonably cured within said 30 day period, Tenant shall
have failed to commence such cure within said 30 day period and thereafter continue with due
diligence to prosecute such cure to completion within such time period as is reasonably needed; or

          C. Abandonment. Tenant shall have abandoned the Premises (coupled with the failure to
pay Rent); or

          D. Insolvency. The occurrence of the following: (i) the making by Tenant of any
general arrangements or assignments for the benefit of creditors; (ii) Tenant becomes a “debtor” as
defined in 11 USC §101 or any successor statute thereto (unless, in the case of a petition filed
against Tenant, the same is dismissed within 60 days); (iii) the appointment of a trustee or
receiver to take possession of substantially all of Tenant’s assets located at the Premises or of
Tenant’s interest in this Lease, where possession is not restored to Tenant within 30 days; or (iv)
the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located
at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged within
30 days; provided, however, in the event that any provision of this Section 13.1E is contrary to
any applicable Law, such provision shall be of no force or effect; or

          E. Multiple Defaults. Any three (3) failures by Tenant to observe and perform a
provision of this Lease during any twelve (12) month period of the term, as such may be extended,
shall constitute, at the option of Landlord, a separate and noncurable default; or

          F. Required Documents. Tenant fails to deliver documents required of its pursuant to
Section 15.4 hereof after notice and the expiration of the applicable time periods specified
therein.

     Any written notice of default sent by Landlord to Tenant shall be in lieu of, and not in
addition to, any termination notice required under applicable statutory or regulatory provisions
(and no further notice shall be required should Landlord elect to terminate this Lease as set forth
below), provided that such notice is prepared and served upon Tenant in accordance with all
applicable statutory or regulatory provisions.

     13.2 Landlord’s Remedies: If an Event of Tenant’s Default occurs, Landlord shall have
the following remedies, in addition to all other rights and remedies provided by any Law or
otherwise provided in this Lease, to which Landlord may resort cumulatively or in the alternative:

28

 

          A. Continue. Landlord may keep this Lease in effect and enforce by an action at law
or in equity all of its rights and remedies under this Lease, including (i) the right to recover
the rent and other sums as they become due by appropriate legal action, (ii) the right to make
payments required of Tenant or perform Tenant’s obligations and be reimbursed by Tenant for the
cost thereof with interest at the Agreed Interest Rate from the date the sum is paid by Landlord
until Landlord is reimbursed by Tenant, and (iii) the remedies of injunctive relief and specific
performance to compel Tenant to perform its obligations under this Lease. Notwithstanding anything
contained in this Lease, in the event of a breach of an obligation by Tenant which results in a
condition which poses an imminent danger to safety of persons or damage to property, an unsightly
condition visible from the exterior of the Building, or a threat to insurance coverage, then if
Tenant does not cure such breach within 3 days after delivery to it of written notice from Landlord
identifying the breach, Landlord may cure the breach of Tenant and be reimbursed by Tenant for the
cost thereof with interest at the Agreed Interest Rate from the date the sum is paid by Landlord
until Landlord is reimbursed by Tenant. Should Landlord not terminate this Lease by giving Tenant
written notice, Landlord may enforce all its rights and remedies under this Lease, including the
right to recover the rent as it becomes due under the Lease as provided in California Civil Code
Section 1951.4.

          B. Enter and Relet. If and to the extent allowed by applicable Law, Landlord may
enter the Premises and release them to third parties for Tenant’s account for any period, whether
shorter or longer than the remaining Lease Term. Tenant shall be liable immediately to Landlord
for all costs Landlord incurs in releasing the Premises, including brokers’ commissions, expenses
of altering and preparing the Premises required by the releasing. Tenant shall pay to Landlord the
rent and other sums due under this Lease on the date the rent is due, less the rent and other sums
Landlord received from any releasing (with the exception that Tenant shall in no event be liable
for any personal injury or property damage claims or causes of action, or any liability arising out
of any breach or default by such a subsequent tenant of the Premises, arising from or in any way
out of any such reletting of the Premises by Landlord). No act by Landlord allowed by this
subparagraph shall terminate this Lease unless Landlord notifies Tenant in writing that Landlord
elects to terminate this Lease. Notwithstanding any releasing without termination, Landlord may
later elect to terminate this Lease because of the default by Tenant.

          C. Terminate. Landlord may terminate this Lease by giving Tenant written notice of
termination, in which event this Lease shall terminate on the date set forth for termination in
such notice. Any termination under this Section 13.2C shall not relieve Tenant from its obligation
to pay sums then due Landlord or from any claim against Tenant for damages or rent previously
accrued or then accruing. In no event shall any one or more of the following actions by Landlord,
in the absence of a written election by Landlord to terminate this Lease, constitute a termination
of this Lease: (i) appointment of a receiver or keeper in order to protect Landlord’s interest
hereunder; (ii) consent to any subletting of the Premises or assignment of this Lease by Tenant,
whether pursuant to the provisions hereof or otherwise; or (iii) any other action by Landlord or
Landlord’s Agents intended to mitigate the adverse effects of any breach of this Lease by Tenant,
including without limitation any action taken to maintain and preserve the Premises or any action
taken to relet the Premises or any portions thereof to the extent such actions do not affect a
termination of Tenant’s right to possession of the Premises.

          D. No Deemed Termination. In the event Tenant breaches this Lease and abandons the
Premises, this Lease shall not terminate unless Landlord gives Tenant written notice of its
election to so terminate this Lease. No act by or on behalf of Landlord intended to mitigate the
adverse effect of such breach, including those described by Section 13.C, shall constitute a
termination of Tenant’s right to possession unless Landlord gives Tenant written notice of
termination.

          E. Damages. In the event Landlord terminates this Lease, Landlord shall be entitled,
at Landlord’s election, to damages in an amount as set forth in California Civil Code Section
1951.2 as in effect on the Effective Date. For purposes of computing damages pursuant to
California Civil Code Section 1951.2,

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(i) an interest rate equal to the Agreed Interest Rate shall be used where permitted, and (ii) the
term “rent” includes Base Monthly Rent and Additional Rent. Such damages shall include:

               (1) The worth at the time of award of the amount by which the unpaid rent for the balance of
the term after the time of award exceeds the amount of such rental loss that Tenant proves could be
reasonably avoided, 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%); and

               (2) Any other amount necessary to compensate Landlord for all detriment proximately caused by
Tenant’s failure to perform Tenant’s obligations under this Lease, or which in the ordinary course
of things would be likely to result therefrom, including the following: (i) expenses for cleaning,
repairing or restoring the Premises; (ii) expenses for altering, remodeling or otherwise improving
the Premises for the purpose of reletting, including installation of leasehold improvements
(whether such installation be funded by a reduction of rent, direct payment or allowance to a new
tenant, or otherwise); (iii) broker’s fees, advertising costs and other expenses of reletting the
Premises; (iv) costs of carrying the Premises, such as taxes, insurance premiums, utilities and
security precautions; (v) expenses in retaking possession of the Premises; and (vi) attorneys’ fees
and court costs incurred by Landlord in retaking possession of the Premises and in releasing the
Premises or otherwise incurred as a result of Tenant’s default.

          F. Non Exclusive Remedies. Nothing in this Section 13.2 shall limit Landlord’s right
to indemnification from Tenant as provided in Section 7.2 and Section 10.3. Any notice given by
Landlord in order to satisfy the requirements of Section 13.1A or Section 13.1B above shall also
satisfy the notice requirements of California Code of Civil Procedure Section 1161 regarding
unlawful detainer proceedings, provided that such notice is prepared and served upon Tenant in
accordance with the requirements of California Code of Civil Procedure Section 1161.

     13.3 Waiver: One party’s consent to or approval of any act by the other party
requiring the first party’s consent or approval shall not be deemed to waive or render unnecessary
the first party’s consent to or approval of any subsequent similar act by the other party. The
receipt by Landlord of any rent or payment with or without knowledge of the breach of any other
provision hereof shall not be deemed a waiver of any such breach unless such waiver is in writing
and signed by Landlord. No delay or omission in the exercise of any right or remedy accruing to
either party upon any breach by the other party under this Lease shall impair such right or remedy
or be construed as a waiver of any such breach theretofore or thereafter occurring. The waiver by
either party of any breach of any provision of this Lease shall not be deemed to be a waiver of any
subsequent breach of the same or of any other provisions herein contained.

     13.4 Limitation On Exercise of Rights: At any time that an Event of Tenant’s Default
has occurred and remains uncured, (i) it shall not be unreasonable for Landlord to deny or withhold
any consent or approval requested of it by Tenant which Landlord would otherwise be obligated to
give, and (ii) Tenant may not exercise any option to extend, right to terminate this Lease, or
other right granted to it by this Lease which would otherwise be available to it.

     13.5 Waiver by Tenant of Certain Remedies: Tenant waives the provisions of Sections
1932(1), 1941 and 1942 of the California Civil Code and any similar or successor law regarding
Tenant’s right to terminate this Lease or to make repairs and deduct the expenses of such repairs
from the rent due under this Lease. Tenant hereby waives any right of redemption or relief from
forfeiture under the laws of the State of California, or under any other present or future law,
including the provisions of Sections 1174 and 1179 of the California Code of Civil Procedure.

     13.6 Landlord’s Default and Tenant’s Remedies: Landlord shall not be deemed to be in
default of its obligations unless Landlord fails to perform any covenant, condition, or agreement
contained in this Lease and fails to cure the nonperformance within a reasonable time, but not
later than thirty (30) days after receiving

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written notice of the failure, provided, however, that if the nature of Landlord’s failure to
perform reasonably requires more than thirty (30) days to cure, then Landlord shall not be deemed
in default if Landlord commences to cure such failure within said thirty (30) day period and
thereafter diligently and in good faith prosecutes such cure to completion. If Landlord is in
default pursuant to this Section 13.6, then Tenant may, in addition to any other remedies provided
at law or in equity, cure the default at Landlord’s expense and Landlord will reimburse Tenant for
such costs within thirty (30) days after receipt of written notice, with supporting documentation.

ARTICLE 14 ASSIGNMENT AND SUBLETTING

     14.1 Transfer By Tenant: The following provisions shall apply to any assignment,
subletting or other transfer by Tenant or any subtenant or assignee or other successor in interest
of the original Tenant (collectively referred to in this Section 14.1 as “Tenant”):

          A. Transfer. Tenant shall not do any of the following (collectively referred to
herein as a “Transfer”), whether voluntarily, involuntarily or by operation of law, without the
prior written consent of Landlord, which consent shall not be unreasonably withheld: (i) sublet all
or any part of the Premises or allow it to be sublet, occupied or used by any person or entity
other than Tenant; (ii) assign its interest in this Lease; (iii) mortgage or encumber the Lease in
any manner or otherwise use the Lease as a security device in any manner, except that Tenant may
finance its personal property as provided in Section 14.3 hereof; or (iv) materially amend or
modify an assignment, sublease or other transfer that has been previously approved by Landlord.
Tenant shall reimburse Landlord for all reasonable out-of-pocket costs and attorneys’ fees incurred
by Landlord in connection with the evaluation, processing, and/or documentation of any requested
Transfer, whether or not Landlord’s consent is granted; provided that such amount shall not exceed
$500 per requested Transfer. Landlord’s reasonable costs shall include the cost of any review or
investigation performed by Landlord or consultant acting on Landlord’s behalf of (i) Hazardous
Materials (as defined in Section 7.2E of this Lease) used, stored, released, or disposed of by the
potential Subtenant or Assignee, and/or (ii) violations of Hazardous Materials Law (as defined in
Section 7.2E of this lease) by the Tenant or the proposed Subtenant or Assignee. Any Transfer so
approved by Landlord shall not be effective until Tenant has delivered to Landlord an executed
counterpart of the document evidencing the Transfer which (i) is in a form reasonably approved by
Landlord, (ii) contains the same terms and conditions as stated in Tenant’s notice given to
Landlord pursuant to Section 14.1B, and (iii) in the case of an assignment of the Lease, contains
the agreement of the proposed transferee to assume all obligations of Tenant under this Lease
arising after the effective date of such Transfer and to remain jointly and severally liable
therefor with Tenant. Any attempted Transfer without Landlord’s consent shall be voidable at
Landlord’s option. Landlord’s consent to any one Transfer shall not constitute a waiver of the
provisions of this 114.1 as to any subsequent Transfer or a consent to any subsequent Transfer. No
Transfer, even with the consent of Landlord, shall relieve Tenant of its personal and primary
obligation to pay the rent and to perform all of the other obligations to be performed by Tenant
hereunder. The acceptance of rent by Landlord from any person shall not be deemed to be a waiver
by Landlord of any provision of this Lease nor to be a consent to any Transfer.

          B. Procedure. At least 30 days before a proposed Transfer is to become effective,
Tenant shall give Landlord written notice of the proposed terms of such Transfer and request
Landlord’s approval, which notice shall include the following: (i) the name and legal composition
of the proposed transferee; (ii) a current financial statement of the transferee, financial
statements of the transferee covering the preceding three years if the same exist, and (if
available) an audited financial statement of the transferee for a period ending not more than one
year prior to the proposed effective date of the Transfer, all of which statements are prepared in
accordance with generally accepted accounting principles; (iii) the nature of the proposed
transferee’s business to be carried on in the Premises; (iv) all consideration to be given on
account of the Transfer; (v) a current financial statement of Tenant; and (vi) an accurately filled
out response to Landlord’s standard hazardous materials questionnaire. Tenant shall provide to
Landlord such other information as may be reasonably requested by Landlord within seven days after
Landlord’s receipt of such notice from Tenant. Landlord shall

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respond in writing to Tenant’s request for Landlord’s consent to a Transfer within the later of (i)
30 days of receipt of such request together with the required accompanying documentation, or (ii)
15 days after Landlord’s receipt of all information which Landlord reasonably requests within seven
days after it receives Tenant’s first notice regarding the Transfer in question. If Landlord fails
to respond in writing within said period, then Tenant shall provide a second written notice to
Landlord requesting such consent and if Landlord fails to respond within 7 days after receipt of
such second notice, then Landlord will be deemed to have consented to such Transfer. Tenant shall
immediately notify Landlord of any modification to the proposed terms of such Transfer, which shall
also be subject Landlord’s consent in accordance with the same process for obtaining Landlord’s
initial consent to such Transfer.

          C. Recapture. In the event that Tenant requests in writing Landlord’s approval to
make any Transfer, Landlord shall have the right to terminate this Lease or, in the case of a
sublease of less than all the Premises to terminate the Lease as to the portion proposed to be
sublet, by written notice to Tenant, so that Landlord is thereafter free to lease the Premises (or,
in the case of a partial sublease, the portion proposed to be so sublet) to whomever it pleases on
whatever terms are acceptable to Landlord; provided, however, that if Landlord so elects to
terminate this Lease, then Tenant within one (1) business day after its receipt of Landlord’s
election may rescind its Transfer request by written notice to Landlord, whereupon the Transfer
request shall be deemed rescinded, Tenant shall not effectuate such Transfer and the Lease shall
remain in full force and effect. Tenant’s notice to rescind must be given by personal delivery or
by FedEx or other reputable overnight delivery service for delivery as soon as possible on the next
business day, with in any case all delivery charges prepaid, notwithstanding any other form of
notice that may be permitted under this Lease. For example, if Tenant receives on a Friday a
notice to recapture from Landlord, Tenant must either personally deliver the rescission notice to
Landlord on the following Tuesday by 5:00 p.m. San Francisco time or send such notice by FedEx or
other delivery service for delivery on Tuesday. In the event Landlord elects to so terminate this
Lease, then the Lease shall so terminate in its entirety (or as to the space to be so sublet)
fifteen (15) days after the Transfer was scheduled to become effective. Upon such termination,
Tenant shall be released from any further obligation under this Lease if it is terminated in its
entirety, or shall be released from any further obligation under the Lease with respect to the
space proposed to be sublet in the case of a proposed partial sublease. In the case of a partial
termination of the Lease, the Base Monthly Rent and Tenant’s Share shall be reduced to an amount
which bears the same relationship to the original amount thereof as the area of that part of the
Premises which remains subject to the Lease bears to the original area of the Premises. Landlord
and Tenant shall execute a cancellation and release with respect to the Lease to effect such
termination.

          Notwithstanding the foregoing, Landlord shall only have the right to recapture any portion
Premises in connection with any sublease that individually or in the aggregate of all subleases is
for more than 50% of the square footage of the Premises. While such subleases shall not be subject
to Landlord’s right to recapture, they shall be subject to all of the other provisions of Article
14 of this Lease.

          D. Other Requirements. If Landlord consents to a Transfer proposed by Tenant, Tenant
may enter into such Transfer, and if Tenant does so, the following shall apply:

               (1) Tenant shall not be released of its liability for the performance of all of its
obligations under the Lease.

               (2) If Tenant assigns its interest in this Lease, then Tenant shall pay to Landlord 75% of all
Subrent (as defined in Section 14.1D(5)) received by Tenant over and above (i) the assignee’s
agreement to assume the rental obligations of Tenant under this Lease, and (ii) all Permitted
Transfer Costs related to such assignment. In the case of assignment, the amount of Subrent owed
to Landlord shall be paid to Landlord on the same basis, whether periodic or in lump sum, that such
Subrent is paid to Tenant by the assignee.

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               (3) If Tenant sublets any part of the Premises, then with respect to the space so subleased,
Tenant shall pay to Landlord 75% of the positive difference, if any, between (i) all Subrent paid
by the subtenant to Tenant, less (ii) the sum of all Base Monthly Rent and Additional Rent
allocable to the space sublet and all Permitted Transfer Costs related to such sublease. Such
amount shall be paid to Landlord on the same basis, whether periodic or in lump sum, that such
Subrent is paid to Tenant by its subtenant.

               (4) Tenant’s obligations under this Section 14.1D shall survive any Transfer, and Tenant’s
failure to perform its obligations hereunder shall be an Event of Tenant’s Default. At the time
Tenant makes any payment to Landlord required by this Section 14.1D, Tenant shall deliver an
itemized statement of the method by which the amount to which Landlord is entitled was calculated,
certified by Tenant as true and correct. Landlord shall have the right at reasonable intervals to
inspect Tenant’s books and records relating to the payments due hereunder. Upon request therefor,
Tenant shall deliver to Landlord copies of all bills, invoices or other documents upon which its
calculations are based. Landlord may condition its approval of any Transfer upon obtaining a
certification from both Tenant and the proposed transferee of all Subrent and other amounts that
are to be paid to Tenant in connection with such Transfer.

               (5) As used in this Section 14.1D, the term “Subrent” shall mean any consideration of any kind
received, or to be received, by Tenant as a result of the Transfer, if such sums are related to
Tenant’s interest in this Lease or in the Premises, including payments from or on behalf of the
transferee (in excess of the book value thereof) for Tenant’s assets, fixtures, leasehold
improvements, equipment and furniture located in the Premises. As used in this 114.1D, the term
“Permitted Transfer Costs” shall mean (i) all reasonable leasing commissions paid to third parties
not affiliated with Tenant in order to obtain the Transfer in question, (ii) all reasonable
attorneys’ fees incurred by Tenant with respect to the Transfer in question, and (iii) the
amortized value of any Tenant’s Alterations made to accommodate the Transfer.

          E. Deemed Transfers. If Tenant is a corporation, the following shall be deemed a
voluntary assignment of Tenant’s interest in this Lease: (i) any dissolution, merger,
consolidation, or other reorganization of or affecting Tenant, whether or not Tenant is the
surviving corporation; and (ii) if the capital stock of Tenant is not publicly traded, the sale or
transfer to one person or entity (or to any group of related persons or entities) stock possessing
more than 50% of the total combined voting power of all classes of Tenant’s capital stock issued,
outstanding and entitled to vote for the election of directors. If Tenant is a partnership,
limited liability company or other entity any withdrawal or substitution (whether voluntary,
involuntary or by operation of law, and whether occurring at one time or over a period of time) of
any partner, member or other party owning 50% or more (cumulatively) of any interest in the capital
or profits of the partnership, limited liability company or other entity or the dissolution of the
partnership, limited liability company or other entity, shall be deemed a voluntary assignment of
Tenant’s interest in this Lease.

          F. Permitted Transfers. Notwithstanding anything contained in Section 14.1, so long
as Tenant otherwise complies with the provisions of Section 14.1, Tenant may enter into any of the
following transfers (a “Permitted Transfer”) without Landlord’s prior written consent and such
transfers shall not be subject to Landlord’s rights set forth in Sections 14.1.C., 14.1.D(2),
14.1.D(3) or 14.1.G:

               (1) Tenant may assign its interest in the Lease to a corporation, partnership, professional
corporation, limited liability company, or limited liability partnership (“Transfer Entity”) which
results from a stock sale, merger, consolidation or other reorganization, so long as the surviving
Transfer Entity has a net worth at least equal to the net worth of Tenant as of the date hereof;

               (2) Tenant may assign this Lease to a Transfer Entity which purchases or otherwise acquires
all or substantially all of the assets of Tenant, so long as such acquiring Transfer Entity has a
net worth at least equal to the net worth of Tenant as of the date hereof; and

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               (3) Tenant may assign this Lease or sublease any portion of the Premises to (a) any
corporation which controls, is controlled by, or is under common control with the original Tenant
to this Lease.

     In the event of any Permitted Transfer, the Transfer Entity shall replace the Letter of Credit
in accordance with the provisions of Section 3.5 as the new tenant hereunder and shall have all
rights of Tenant with respect thereto.

          G. Reasonable Standards. The consent of Landlord to a Transfer may not be
unreasonably withheld, provided that it is agreed to be reasonable for Landlord to consider any of
the following reasons, which list is not exclusive, in electing to deny consent:

               (1) The financial strength, credit, character and business or professional standing of the
proposed transferee at the time of the proposed Transfer is not commensurate with its obligations
under the Transfer;

               (2) A proposed transferee who has a bad business reputation and would thereby cause a
diminution in the value of the Building or Project;

               (3) A proposed transferee whose impact or affect on the common facilities or the utility,
efficiency or effectiveness of any utility or telecommunication system serving the Building or the
Project or the other occupants of the Project would be adverse, disadvantageous or require
improvements or changes in any utility or telecommunication capacity currently serving the Building
or the Project;

               (4) A proposed transferee whose occupancy will require a variation in the terms of this Lease
(including, without limitation, a variation in the use clause) or which otherwise materially
adversely affects any interest of Landlord;

               (5) The existence of any Event of Tenant’s Default under any material provision of this Lease;

               (6) 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 or an
affiliate of the proposed transferee is negotiating with Landlord to lease space in the Building or
in the Project at such time;

               (7) the proposed Transferee is a governmental agency or unit or an existing tenant in the
Project; or

               (8) Landlord otherwise determines that the proposed Transfer would have the effect of or
materially increasing the expenses associated with operating, maintaining and repairing the
Building or the Project; or

               (9) the proposed Transferee will use, store or handle Hazardous Materials (defined below) in
or about the Premises of a type, nature or quantity not then reasonably acceptable to Landlord.

          H. Reasonable Restriction. The restrictions on Transfer described in this Lease are
acknowledged by Tenant to be reasonable for all purposes, including, without limitation, the
provisions of California Civil Code (the “Code”) Section 1951.4(b)(2). Tenant expressly waives any
rights which it might otherwise be deemed to possess pursuant to applicable law, including, without
limitation, Section 1997.040 of the Code, to limit any remedy of Landlord pursuant to Section
1951.2 or 1951.4 of the Code by means of proof that enforcement of a restriction on use of the
Premises would be unreasonable.

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     14.2 Transfer By Landlord: Landlord and its successors in interest shall have the
right to transfer their interest in this Lease and the Project at any time and to any person or
entity by written assignment of the lease and the transfer of Tenant’s Security Deposit to such
transferee to the extent such Security Deposit has not been applied for any Event of Tenant’s
Default under this Lease. In the event of any such transfer, the Landlord originally named herein
(and, in the case of any subsequent transfer, the transferor) from the date of such transfer, shall
be automatically relieved, without any further act by any person or entity, of all liability for
the performance of the obligations of the Landlord hereunder which first may accrue after the date
of such transfer. After the date of any such transfer, the term “Landlord” as used herein shall
mean the transferee of such interest in the Premises.

     14.3 Tenant Financing of Personal Property. Tenant shall have the right to encumber
its furniture, trade fixtures and equipment located in or on the Premises that are installed and
paid for by Tenant separate and apart from any rent under this Lease. Upon Tenant’s request,
Landlord agrees to cooperate with Tenant’s third party lender’s request in executing a consent to
such financing and removal of such furniture, trade fixtures and equipment, provided such form of
consent provides, among other things, (i) at least 5 business prior notice to Landlord before entry
and removal of such personal property by any lender or equipment financier, (ii) an indemnity by
such lender or equipment lessor of Landlord and Landlord’s Agents for any injury to persons or
damage to property, including, without limitation, the Premises, Building or Project, (iii) does
not permit any auction or sale of such personal property from the Premises, Building or Project,
(iv) does not obligate Landlord to provide to such lender or equipment lessor any notice of default
by Tenant under this Lease, and (v) is acceptable to Landlord in its reasonable discretion.

ARTICLE 15 GENERAL PROVISIONS

     15.1 Landlord’s Right to Enter: Landlord and its agents may enter the Premises at any
reasonable time after giving at least 24 hours’ prior notice to Tenant (and immediately in the case
of emergency) and subject to Tenant’s reasonable security requirements, for the purpose of: (i)
inspecting the same; (ii) posting notices of non-responsibility; (iii) supplying any service to be
provided by Landlord to Tenant; (iv) showing the Premises to prospective purchasers, mortgagees or
tenants (during the last 180 days of the Lease Term only); (v) making necessary alterations,
additions or repairs; (vi) performing Tenant’s obligations when Tenant has failed to do so after
written notice from Landlord; and (vii) responding to an emergency. Landlord shall have the right
to use any and all means Landlord may deem necessary and proper to enter the Premises in an
emergency. Any entry into the Premises obtained by Landlord in accordance with this 9[15.1 shall
not be a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction, actual or
constructive, of Tenant from the Premises; provided, however, that Landlord shall at all times use
reasonable efforts to minimize any disruption to Tenant’s use of the Premises.

     15.2 Surrender of the Premises: Upon the expiration or sooner termination of this
Lease, Tenant shall vacate and surrender the Premises to Landlord in the same condition as existed
at the Commencement Date, except for (i) reasonable wear and tear, (ii) damage caused by any peril
or condemnation, (iii) contamination by Hazardous Materials for which Tenant is not responsible
pursuant to Section 7.2A or Section 7.2B, and (iv) Tenant’s Alterations that may be surrendered
upon expiration of the Lease Term. In this regard, normal wear and tear shall be construed to mean
wear and tear caused to the Premises by the natural aging process which occurs in spite of prudent
application of commercially reasonable standards for maintenance, repair and janitorial practices,
and does not include items of neglected or deferred maintenance. In any event, Tenant shall cause
the following to be done prior to the expiration or the sooner termination of this Lease: (i) all
broken, marred, stained or nonconforming acoustical ceiling tiles shall be replaced; (ii) the HVAC
system shall be serviced by a reputable and licensed service firm and left in good operating
condition and repair, reasonable wear and tear, as so certified by such firm; and (iii) the
plumbing and electrical systems and lighting shall be placed in good order and repair (including
replacement of any burned out, discolored or broken light bulbs, ballasts, or lenses) reasonable
wear and tear. If Landlord so requests, Tenant shall, prior to the expiration or sooner
termination of this Lease, (i) remove any Tenant’s Alterations which Tenant is required to remove

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pursuant to Section 5.2 and repair all damage caused by such removal, and (ii) return the
Premises or any part thereof to its original configuration existing as of the time the Premises
were delivered to Tenant, reasonable wear and tear and damage caused by a peril excepted. If the
Premises are not so surrendered at the termination of this Lease, Tenant shall continue to be
responsible for the payment of Rent until the Premises are so surrendered in accordance with said
provisions and Tenant shall be liable to Landlord for all costs incurred by Landlord in returning
the Premises to the required condition, plus interest on all costs incurred at the Agreed Interest
Rate. Tenant shall indemnify Landlord against loss or liability resulting from delay by Tenant in
so surrendering the Premises, including, without limitation, any claims made by any succeeding
tenant or losses to Landlord due to lost opportunities to lease to succeeding tenants and losses
and damages suffered by Landlord due to lost opportunities to lease any portion of the Premises to
any such succeeding tenant or prospective tenant, together with, in each case, actual attorneys’
fees and costs.

     15.3 Holding Over: This Lease shall terminate without further notice at the
expiration of the Lease Term. Any holding over by Tenant after expiration of the Lease Term shall
not constitute a renewal or extension of the Lease or give Tenant any rights in or to the Premises
except as expressly provided in this Lease. Any holding over after such expiration with the
written consent of Landlord shall be construed to be a tenancy from month to month on the same
terms and conditions herein specified insofar as applicable except that Base Monthly Rent shall be
increased to an amount equal to 150% of the greater of (a) the Base Monthly Rent payable during the
last full calendar month of the Lease Term, or (b) the then prevailing fair market rent.

     15.4 Subordination: The following provisions shall govern the relationship of this
Lease to any Security Instrument:

          A. Existing Security Instruments. The Lease is subject and subordinate to all
Security Instruments existing as of the Effective Date. However, if any Lender so requires, this
Lease shall become prior and superior to any such Security Instrument. Landlord has informed
Tenant that the Building is currently encumbered by a Security Instrument in favor of or being
serviced by Solomon Brothers. Landlord shall request the beneficiary (or its servicer) of the
existing Security Instrument that encumbers the Building as of the date hereof to issue its
standard subordination, non-disturbance and attornment agreement (“SNDA”), pursuant to which such
beneficiary agrees to recognize this Lease in the event of default under such Security Instrument
or sale under such Security Instrument, so long as Tenant is not in default hereunder. Landlord’s
agrees to use its good faith efforts to obtain such SNDA, but Landlord is not obligated to incur
any expense or liability in connection therewith. Tenant is responsible for paying all costs and
expenses for such SNDA, including, without limitation, the lender attorneys’ fees and
disbursements. Obtaining the SNDA is not a condition precedent or subsequent to the Lease, nor a
breach of Landlord’s obligation. The failure of such lender to issue its SNDA shall not relieve
Tenant of any of its obligations under the Lease.

          B. New Security Instruments. At Landlord’s election, this Lease shall become subject
and subordinate to any Security Instrument created after the Effective Date. Notwithstanding such
subordination, Tenant’s right to quiet possession of the Premises shall not be disturbed so long as
no Event of Tenant’s Default has occurred, unless this Lease is otherwise terminated pursuant to
its terms, and such Lenders agree to execute a non-disturbance agreement in connection therewith in
a form reasonably acceptable to Tenant, but Tenant acknowledges it will be working with the
lender’s form.

          C. Documents. Within 10 days after receipt of a written request from Landlord or a
Lender, Tenant shall upon execute any document or instrument required by any Lender to make this
Lease either prior or subordinate to a Security Instrument, which may include such other matters as
the Lender customarily and reasonably requires in connection with such agreements, including
provisions that the Lender not be liable for (i) the return of any security deposit unless the
Lender receives it from Landlord, and (ii) any defaults occurring prior to the time the Lender
takes possession of the Project in connection with the enforcement of its Security Instrument,
except for defaults in Landlord’s repair and maintenance obligations under this Lease of a
continuing nature which exist on the date Lender acquires the Project. If Tenant fails to

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execute and deliver such document or instrument within said 10-day period, Landlord or Lender may
send a second written request for Tenant to execute and deliver such document or instrument.
Tenant’s failure to execute any such document or instrument within 10 days after Tenant’s receipt
of a second 10-day written demand therefor shall constitute an Event of Tenant’s Default.

     15.5 Mortgagee Protection and Attornment: In the event of any default on the part of
the Landlord, Tenant will use reasonable efforts to give notice by registered mail to any Lender
whose name has been provided to Tenant and shall offer such Lender a reasonable opportunity to cure
the default. Tenant shall attorn to any purchaser of the Premises at any foreclosure sale or
private sale conducted pursuant to any Security Instrument encumbering the Premises, or to any
grantee or transferee designated in any deed given in lieu of foreclosure who agreed to assume
Landlord’s obligations under this Lease in writing from and after the date such grantee or
transferee acquires title to the Project.

     15.6 Estoppel Certificates and Financial Statements: At all times during the Lease
Term, each party agrees, following any request by the other party, promptly to execute and deliver
to the requesting party within 15 days following delivery of such request an estoppel certificate:
(i) certifying that this Lease is unmodified and in full force and effect or, if modified, stating
the nature of such modification and certifying that this Lease, as so modified, is in full force
and effect, (ii) stating the date to which the rent and other charges are paid in advance, if any,
(iii) acknowledging that there are not, to the certifying party’s knowledge, any uncured defaults
on the part of any party hereunder or, if there are uncured defaults, specifying the nature of such
defaults, and (iv) certifying such other information about the Lease as may be reasonably required
by the requesting party. If Tenant fails to execute any such estoppel certificate within said 15
day period, Landlord may send a second written request for Tenant to execute and deliver such
estoppel certificate. If Tenant fails to deliver such estoppel certificate within 10 days after
receipt of such second written request, then the information contained in such estoppel certificate
shall be deemed correct and binding against Tenant and may be relied upon by any Lender, buyer and
Landlord.

     At any time during the Lease Term Tenant shall, upon 15 days’ prior written notice from
Landlord, provide Tenant’s most recent financial statement and financial statements covering the 24
month period prior to the date of such most recent financial statement to any Lender or potential
buyer of the Premises, provided such buyer (but not any Lender) agrees to execute a commercially
reasonable form of non-disclosure agreement as a condition of receipt of such statements during the
time period that Tenant is a privately owned company. 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. If Tenant fails to deliver
such information within said 15 day period, Landlord may send a second written request for Tenant
to deliver such information. Tenant’s failure to deliver such information within 10 days after
receipt of such second written request shall constitute an Event of Tenant’s Default.

     15.7 Consent: Whenever Landlord’s approval or consent is required by this Lease, such
approval or consent may be exercised in Landlord’s reasonable discretion and without undue delay,
unless a different standard or time period has been expressly provided in this Lease for the
particular matter requiring Landlord’s consent or approval.

     15.8 Notices: Any notice required or desired to be given regarding this Lease shall
be in writing and may be given by personal delivery, by facsimile, by courier service, or by mail.
A notice shall be deemed to have been given (i) on the third business day after mailing if such
notice was deposited in the United States mail, certified or registered, postage prepaid, addressed
to the party to be served at its Address for Notices specified in Section Q or Section
R of the Summary (as applicable), (ii) when delivered if given by personal delivery, and (iii)
in all other cases when actually received at the party’s Address for Notices. Either party may
change its address by giving notice of the same in accordance with this Section 15.8, provided,
however, that any address to which notices may be sent must be a California address. In the event
that the last day for any

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notice that is required to be given falls on a Saturday, Sunday or legal holiday, it shall be
deemed to be due on the next business day.

     15.9 Attorneys’ Fees: In the event either Landlord or Tenant shall bring any action
or legal proceeding for an alleged breach of any provision of this Lease, to recover rent, to
terminate this Lease or otherwise to enforce, protect or establish any term or covenant of this
Lease, the prevailing party shall be entitled to recover as a part of such action or proceeding, or
in a separate action brought for that purpose, reasonable attorneys’ fees, court costs, and
experts’ fees as may be fixed by the court.

     15.10 Corporate Authority: If Tenant is a corporation (or partnership), each
individual executing this Lease on behalf of Tenant represents and warrants that he is duly
authorized to execute and deliver this Lease on behalf of such corporation in accordance with the
by-laws of such corporation (or partnership in accordance with the partnership agreement of such
partnership) and that this Lease is binding upon such corporation (or partnership) in accordance
with its terms. Each of the persons executing this Lease on behalf of a corporation or a limited
liability company does hereby covenant and warrant that the party for whom it is executing this
Lease is a duly authorized and existing corporation or limited liability company, that it is
qualified to do business in California, and that the corporation or limited liability company has
full right and authority to enter into this Lease.

     15.11 Miscellaneous: Should any provision of this Lease prove to be invalid or
illegal, such invalidity or illegality shall in no way affect, impair or invalidate any other
provision hereof, and such remaining provisions shall remain in full force and effect. Time is of
the essence with respect to the performance of every provision of this Lease in which time of
performance is a factor. The captions used in this Lease are for convenience only and shall not be
considered in the construction or interpretation of any provision hereof. Any executed copy of
this Lease shall be deemed an original for all purposes. This Lease shall, subject to the
provisions regarding assignment, apply to and bind the respective heirs, successors, executors,
administrators and assigns of Landlord and Tenant. “Party” shall mean Landlord or Tenant, as the
context implies. If Tenant consists of more than one person or entity, then all members of Tenant
shall be jointly and severally liable hereunder. This Lease shall be construed and enforced in
accordance with the laws of the State of California. The language in all parts of this Lease shall
in all cases be construed as a whole according to its fair meaning, and not strictly for or against
either Landlord or Tenant. When the context of this Lease requires, the neuter gender includes the
masculine, the feminine, a partnership or corporation or joint venture, and the singular includes
the plural. The terms “shall”, “will” and “agree” are mandatory. The term “may” is permissive.
When a party is required to do something by this Lease, it shall do so at its sole cost and expense
without right of reimbursement from the other party unless a provision of this Lease expressly
requires reimbursement. Where a party hereto is obligated not to perform any act, such party is
also obligated to restrain any others within its control from performing said act, including the
Agents of such party. Landlord shall not become or be deemed a partner or a joint venturer with
Tenant by reason of the provisions of this Lease.

     Landlord and Tenant agree that (i) the gross rentable area of the Premises includes any
atriums, depressed loading docks, covered entrances or egresses, and covered loading areas, (ii)
each has had an opportunity to determine to its satisfaction the actual area of the Building and
the Premises, (iii) all measurements of area contained in this Lease are conclusively agreed to be
correct and binding upon the parties, even if a subsequent measurement of any one of these areas
determines that it is more or less than the amount of area reflected in this Lease, and (iv) any
such subsequent determination that the area is more or less than shown in this Lease shall not
result in a change in any of the computations of rent, improvement allowances, or other matters
described in this Lease where area is a factor.

     15.12 Termination by Exercise of Right: If this Lease is terminated pursuant to its
terms by the proper exercise of a right to terminate specifically granted to Landlord or Tenant by
this Lease, then this Lease shall terminate 30 days after the date the right to terminate is
properly exercised (unless another date is specified in that part of the Lease creating the right,
in which event the date so specified for termination shall

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prevail), the rent and all other charges due hereunder shall be prorated as of the date of
termination, and neither Landlord nor Tenant shall have any further rights or obligations under
this Lease except for those that have accrued prior to the date of termination or those obligations
which this Lease specifically provides are to survive termination. This 115.12 does not apply to a
termination of this Lease by Landlord as a result of an Event of Tenant’s Default.

     15.13 Brokerage Commissions: Each party hereto (i) represents and warrants to the
other that it has not had any dealings with any real estate brokers, leasing agents or salesmen, or
incurred any obligations for the payment of real estate brokerage commissions or finder’s fees
which would be earned or due and payable by reason of the execution of this Lease, other than to
the Retained Real Estate Brokers described in Section S of the Summary, and (ii) agrees to
indemnify, defend, and hold harmless the other party from any claim for any such commission or fees
which result from the actions of the indemnifying party. Landlord shall be responsible for the
payment of any commission owed to the Retained Real Estate Brokers if there is a separate written
commission agreement between Landlord and the Retained Real Estate Brokers for the payment of a
commission as a result of the execution of this Lease.

     15.14 Force Majeure: Any prevention, delay or stoppage due to strikes, lock-outs,
inclement weather, labor disputes, inability to obtain labor, materials, fuels or reasonable
substitutes therefor, governmental restrictions, regulations, controls, action or inaction, civil
commotion, fire or other acts of God, and other causes beyond the reasonable control of Landlord or
Tenant (except financial inability) shall excuse the performance by Landlord or Tenant, as the case
may be for a period equal to the period of any said prevention, delay or stoppage, of any
obligation hereunder.

     15.15 Entire Agreement: This Lease constitutes the entire agreement between the
parties, and there are no binding agreements or representations between the parties except as
expressed herein. Tenant acknowledges that neither Landlord nor Landlord’s Agents has made any
legally binding representation or warranty as to any matter except those expressly set forth
herein, including any warranty as to (i) whether the Premises may be used for Tenant’s intended use
under existing Law, (ii) the suitability of the Premises or the Project for the conduct of Tenant’s
business, or (iii) the condition of any improvements. There are no oral agreements between
Landlord and Tenant affecting this Lease, and this Lease supersedes and cancels any and all
previous negotiations, arrangements, brochures, agreements and understandings, if any, between
Landlord and Tenant or displayed by Landlord to Tenant with respect to the subject matter of this
Lease. This instrument shall not be legally binding until it is executed by both Landlord and
Tenant. No subsequent change or addition to this Lease shall be binding unless in writing and
signed by Landlord and Tenant.

[the balance of this page has been intentionally left blank; signature page follows]

39

 

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease with the intent to be legally
bound thereby, to be effective as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SHORELINE PARK, LLC

a Delaware limited liability company	 	 	 	By:	 	CONCENTRIC MEDICAL, INC.,

a Delaware corporation
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Divco West Group, LLC,	 	 	 	 	 	By:	 	/s/ Gary Curtis
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	A Delaware limited liability company	 	 	 	 	 	Name:	 	Gary Curtis
	 	 	Its Agent	 	 	 	 	 	Title:	 	President
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ ILLEGIBLE	 	 	 	 	 	Dated: Aug 29, 2002
	 

	 	 	 	 

	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	ILLEGIBLE L. Smitters	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	CDO	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Dated: 8/29/02	 	 	 	 	 	 	 	 

40

 

FIRST LEASE AMENDMENT

     This FIRST LEASE AMENDMENT (this “Amendment”) is entered into as of January 18, 2005, by and
between CONCENTRIC MEDICAL, INC., a Delaware corporation (“Tenant”), and SHORELINE PARK, LLC, a
Delaware limited liability company (“Landlord”), with reference to the following facts:

     A. Landlord and Tenant are the current parties to that certain Lease, dated as of August 28,
2002 (the “Lease”), for the lease by Tenant of space at 1380 Shorebird Way, Mountain View,
California, as more particularly described in the Lease. All capitalized terms referred to in this
Amendment shall have the same meaning defined in the Lease, except where expressly defined to the
contrary in this Amendment.

     B. Tenant and Landlord desire to amend the Lease to extend the Term and to make certain other
changes to the Lease, upon the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter
contained, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

          1. Extension. The current Term of the Lease is scheduled to expire on December 31, 2005. The
Term of the Lease is hereby extended and shall now expire on December 31, 2008, upon the same terms
and conditions set forth in the Lease, except as provided in this Amendment. The period of time
commencing on January 1, 2006 and expiring on December 31, 2008 shall be referred to in this
Amendment as the “Extended Term.”

          2. Base Monthly Rent. The Base Monthly Rent during the Extended Term shall be
$26,582.12.

          3. General Provisions.

               3.1. Confirmation. Tenant acknowledges and agrees that: (a) Tenant is in sole
possession of the Premises demised under the Lease; (b) all work, improvements and furnishings
required by Landlord under the Lease have been completed and accepted by Tenant; (c) all free rent
and any other concession required under the Lease have been granted, used and otherwise satisfied;
and (d) it has no offset, claim, recoupment or defense against the payment of rent and other sums
and the performance of all obligations of Tenant under the Lease. The parties agree that the
current amount of the Security Deposit held by Landlord is $26,582.12.

               3.2. Miscellaneous. This Amendment shall be binding upon and inure to the benefit of
the parties hereto and their successors and assigns. As amended hereby, the Lease shall remain in
full force and effect. In case of any conflict between any term or provision of this Amendment and
the Lease, the term or provision of this Amendment shall govern.

 

 

               3.3. Counterparts. This Amendment may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which when taken together shall constitute one
agreement.

               3.4. Real Estate Brokers. Tenant represents and warrants to Landlord that it has not
authorized or employed, or acted by implication to authorize or employ, any real estate broker or
salesman to act for it in connection with this Amendment. Tenant agrees to indemnify, defend and
hold harmless Landlord from and against any and all claims by any real estate broker or salesman
whom the Tenant authorized or employed, or acted by implication to authorize or employ, to act for
Tenant in connection with this Amendment.

               3.5. Authority. Each party represents and warrants to the other that it is duly
authorized to enter into this Amendment and perform its obligations without the consent or approval
of any other party and that the person signing on its behalf is duly authorized to sign on behalf
of such party.

     IN WITNESS WHEREOF, this Amendment has been executed as of the date first set forth above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SHORELINE PARK, LLC

a Delaware limited liability company	 	 	 	By:	 	CONCENTRIC MEDICAL, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Divco West Group, LLC,	 	 	 	 	 	By:	 	/s/ Gary Curtis	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	a Delaware limited liability company	 	 	 	 	 	Name:	 	Gary Curtis	 	 
	 	 	Its Agent	 	 	 	 	 	Title:	 	President, CEO	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James Ting
 

	 	 	 	 	 	 	 	 	 	 
	 	 	Name:	 	James Ting	 	 	 	 	 	Dated: June 1, 05	 	 
	 

	 	Its:
	 	Authorized Signatures	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Dated: 2/7/05	 	 	 	 	 	 	 	 	 	 

-2-

 

EXHIBIT A

Shoreline Properties, L.L.C.

322,047 Square Feet

 

 

EXHIBIT B

WORK LETTER TENANT IMPROVEMENTS

     This Exhibit B forms a part of that certain Lease (the “Lease”) by and between
Shoreline Park, LLC, as Landlord, and Concentric Medical, Inc., as Tenant, to which this Exhibit is
attached. If there is any conflict between this Exhibit and the Lease regarding the construction
of the Tenant Improvements, this Exhibit shall govern.

     1. Defined Terms. All defined terms referred to in this Exhibit shall have the same
meaning as defined in the Lease to which this Exhibit is a part, except where expressly defined to
the contrary.

     2. Additional Definitions. Each of the following terms shall have the following
meaning:

     “Construction Plans” —The complete plans and specifications for the construction of the Tenant
Improvements consisting of all architectural, engineering, mechanical and electrical drawings and
specifications which are required to obtain all building permits, licenses and certificates from
the applicable governmental authority(ies) for the construction of the Tenant Improvements. The
Construction Plans shall be prepared by duly licensed and/or registered architectural and/or
engineering professionals selected by Landlord in its sole and absolute discretion, and in all
respects shall be in compliance with all applicable laws, rules, regulations, building codes for
the city and county where the Building is located.

     “Days” or “days” All references to days shall mean calendar days, unless specifically provided
in a particular case to be business days.

     “Force Majeure Delays” — Any delay, other than a Tenant Delay, by Landlord in completing the
Tenant Improvements by the Scheduled Commencement Date set forth in the Lease by reason of (i) any
strike, lockout or other labor trouble or industrial disturbance (whether or not on the part of the
employees of either party hereto), (ii) governmental preemption of priorities or other controls in
connection with a national or other public emergency, civil disturbance, riot, war, act of
terrorism, sabotage, blockade, embargo, inability to secure customary materials, supplies or labor
through ordinary sources by reason of regulation or order of any government or regulatory body, or
(iii) shortages of fuel, materials, supplies or labor, (iv) lightning, earthquake, fire, storm,
tornado, flood, washout explosion, inclement weather or any other similar industry-wide or
Building-wide cause beyond the reasonable control of Landlord, or (v) any other cause, whether
similar or dissimilar to the above, beyond Landlord’s reasonable control, including, without
limitation, delays in the architect preparing the Construction Plans and revisions thereto and
delays in obtaining the building permits from the local governmental authority. The time for
performance of any obligation of Landlord to construct the Tenant Improvements under this Exhibit
or the Lease shall be extended at Landlord’s election by the period of any delay caused by any of
the foregoing events.

     “Space Plan” — That certain Space Plan attached hereto as Exhibit C-1. which reflect
the Tenant Improvements to be constructed by Landlord and the Building specifications for the
improvements reflected on the Space Plan (the “Standard Specifications”). Landlord and Tenant
hereby approve of the Space Plan and the Standard Specifications.

 

 

     “Substantial Completion,” “Substantially Complete,” “Substantially Completed” — The terms
Substantial Completion, Substantially Completed and Substantially Complete shall mean when the
following have occurred or would have occurred but for Tenant Delays:

               (a) Landlord has delivered to Tenant a written notice stating that the Tenant Improvements
have been completed substantially in accordance with the Construction Plans, including all of the
Building’s sanitary, electrical, HVAC, and other systems to extent they serve or run through the
Premises, except “punch list” items which in the aggregate, are minor in character and do not
unreasonably interfere with the Tenant’s use or enjoyment of the Premises or the appurtenant common
Building facilities and may be completed without materially impairing Tenant’s use of the Leased
Premises or a material portion thereof; and

               (b) Landlord has obtained from the appropriate governmental authority a temporary, conditional
or final certificate of occupancy or signed building permit (or equivalent), if one is required,
for the Tenant Improvements permitting occupancy of the Leased Premises by Tenant.

     “Tenant Delay” — Any delay incurred by Landlord in completing the Tenant Improvements due to
(i) a delay by Tenant, or by any person employed or engaged by Tenant, in approving or delivering
to Landlord any plans, schedules or information, including, without limitation, the Construction
Plans beyond the applicable time period set forth in this Exhibit, if any; (ii) any changes
requested by Tenant in or to previously approved work or in the Space Plan, Construction Plans or
Standard Specifications which actually results in a delay; (iii) requests for materials and
finishes which are not readily available and delivery of which actually results in a delay, and/or
delays in delivery of any materials specified by Tenant through change orders; (iv) interference by
Tenant or any of Tenant’s Agents on-site that causes or impedes with the construction of the Tenant
Improvements; and (v) any delay attributable to the failure of Tenant to pay, when due, any amounts
required to be paid by Tenant pursuant to this Exhibit or otherwise provided in the Lease.
Landlord shall notify Tenant within a five (5) days after Landlord actually knows of an event
constituting a Tenant Delay and of Landlord’s good faith estimate of the length of the Tenant
Delay.

     “Tenant Improvements” — The improvements to be installed by Landlord in the portion of the
Premises substantially in accordance with the Construction Plans. To the extent Tenant requests
any changes in the Standard Specifications, any additional costs incurred in connection therewith
will be paid by Tenant.

     3. Construction of the Tenant Improvements.

          3.1 Construction Plans. Landlord shall cause to be prepared the Construction Plans
for the Tenant Improvements that are consistent with and logical evolutions of the Space Plan and
the Standard Specifications), and shall deliver the same to Tenant within 15 days after the date
hereof. Within seven (7) business days after receipt of the proposed Construction Plans, Tenant
shall notify Landlord in writing that (i) Tenant approved the Construction Plans; or (ii) Tenant
disapproves the Construction Plans because they vary in design from the Space Plan or Standard
Specifications approved by Landlord and Tenant in the particular instances specified by Tenant in
such notice (including, without limitation, the specific changes requested by Tenant). Such
disapproval shall constitute a Tenant Delay, unless the plans materially deviate from the Space
Plan. Promptly after Landlord’s receipt of such notice from Tenant, Tenant and Landlord shall meet
and confer in order to reach agreement regarding the changes required to the Construction Plans,
and both parties shall make themselves reasonably available in order to . Following such meeting,
Landlord shall cause the Construction Plans to be re-designed, if so

 

 

agreed by the parties, and delivered to Tenant within five (5) business days after such meeting,
unless due to the nature and extent of such changes or the unavailability of the architect,
additional time is required. Within five (5) business days after receipt of the revised
Construction Plans, Tenant shall notify Landlord in writing that (i) Tenant approved the revised
Construction Plans; or (ii) Tenant disapproves the revised Construction Plans because they vary in
design from the changes or revisions agreed upon by Landlord and Tenant in the particular instances
specified by Tenant in such notice (including, without limitation, the specific changes requested
by Tenant). Such disapproval shall constitute a Tenant Delay, unless the revised Construction
Plans materially deviate from agreed upon revisions or changes. The failure of Tenant to provide
such written notice within said five (5) day period shall be deemed as approval by Tenant of such
revised Construction Plans. The parties shall follow the same procedure for revisions of the
Construction Plans until the Construction Plans have been approved by Landlord and Tenant.
Landlord and Tenant each agree to cooperate with each other and not unreasonably withhold approval
to the Construction Plans.

          3.2 Construction. Landlord shall construct the Tenant Improvements in a good and
workmanlike manner using new materials where new materials are reflected in the Space Plan; it
being acknowledged by the parties that some of the components and materials in the Tenant
Improvements will consistent of the improvements and materials already existing in the Premises.
The Tenant Improvements shall be constructed in accordance with the Construction Plans and in
compliance with all applicable Laws. The construction contract for constructing the Tenant
Improvements and the contractor(s) to perform the work shall be approved and/or selected, as the
case may be, by Landlord in its sole and absolute discretion without the consent of Tenant. The
parties anticipate that the Tenant Improvements will be Substantially Completed by the Scheduled
Commencement Date, subject to Tenant Delays and Force Majeure Delays.

          3.3 Tenant’s Responsibility. Tenant shall be solely responsible for the suitability
for the Tenant’s needs and business of the design and function of the Tenant Improvements. Tenant
shall also be responsible for procuring or installing in the Premises any trade fixtures,
equipment, furniture, furnishings, telephone equipment or other personal property (“Personal
Property”) to be used in the Premises by Tenant, and the cost of such Personal Property shall be
paid by Tenant. Tenant shall conform to the Building’s wiring standards in installing any
telephone equipment and shall be subject to any and all rules of the site during construction.

     4. Payment of Construction Costs. Landlord shall pay for the costs to construct the
Tenant Improvements based on the Space Plan and Standard Specifications attached hereto as Exhibit
B-1, except as provided in this Exhibit. Any additional costs, including, without limitation,
costs for architectural, engineering and design fees, permits, labor and materials, due to (a)
changes in the Tenant Improvements reflected in the Space Plan or in the Construction Plans
requested by Tenant, or (b) any change in the Standard Specifications requested by Tenant, or (c)
as a result of any Tenant Delay, shall be paid by Tenant to Landlord within 10 days after request
by Landlord, which may be made prior to the commencement of construction of the Tenant Improvements
or Landlord entering into any construction contract or change order.

     5. Changes in Work. Tenant shall not be permitted to make any change in the Tenant
Improvements, the Space Plan, Construction Plans or Standard Specifications without the prior
written approval of Landlord, which approval shall not be unreasonably withheld or delayed, but may
be made subject to such conditions as Landlord may reasonably require. Such approval shall include
Landlord’s written notice to Tenant of changes, if any, to the construction costs for which Tenant
would be responsible (“Tenant’s Costs”) and of anticipated delays, if any, to the completion of the
Tenant Improvements. Within three (3) business days after receipt of such information regarding
Tenant’s Costs

 

 

and the anticipated delays, Tenant shall give Landlord written notice to proceed or not to proceed
with the change. The time it takes for Landlord to obtain information about Tenant’s Costs and
anticipated delays and the time for Tenant to approve or disapprove of such information shall be
deemed a Tenant Delay. If Tenant fails to respond during such time period, it shall be deemed an
authorization by Tenant for Landlord to proceed with such change. The Tenant’s notice to proceed
with the change shall be deemed Tenant’s acceptance of the Tenant’s Costs and specified Tenant
Delays and Landlord shall promptly revise the Construction Plans to incorporate such changes or
additions. Any change approved by Landlord that in Landlord’s judgment results in a delay in
constructing the Tenant Improvements shall be deemed a Tenant Delay, and shall extend the time
period by which Landlord must Substantially Complete the Tenant Improvements by the number of days
the Tenant Improvements are reasonably delayed by such change, but shall not extend or postpone the
date for payment of rent or for commencement of the term under the Lease. The cost of such
changes, including, without limitation, all architectural, engineering and design fees, permits
fees, labor and material, and all other additional costs incurred by Landlord from resulting delays
in completing the Tenant Improvements, shall be paid by Tenant to Landlord within ten (10) days
after Tenant’s receipt of notice from Landlord, which may be required prior to commencement of the
work or prior to Landlord executing a construction contract for the Tenant Improvements or change
order for the work. If Landlord does not receive such payment within said ten (10) day period,
Landlord shall have the right, in addition to any other rights or remedies available under the
Lease, at law or in equity, to (i) discontinue all or any portion of the work until it receives
said payment; (ii) proceed with the other work not affected by such change until such payment is
received; (iii) proceed with the work contemplated with such change; or (iv) proceed with the work
without making such change; in which case the commencement or completion of such work shall not be
deemed a waiver of Tenant’s obligation to pay for same or any additional costs or expenses incurred
as a result thereof. . Any delay caused as a result of such a change or request for a change shall
constitute a Tenant Delay. Any and all modifications of or amendments to the Construction Plans by
Landlord (except immaterial field changes that have no material cost impact) shall be subject to
prior approval by Tenant, which approval shall not be unreasonably withheld or delayed.

     6. Acceptance and Punch List Work. Within ninety (90) days after the date of
Substantial Completion of the Tenant Improvements, Tenant may provide Landlord with a punch list
which sets forth any corrective work to be performed by Landlord with respect to the Tenant
Improvements; provided, however, that Tenant’s obligation to pay Base Monthly Rent, additional rent
and other sums under the Lease shall not be affected thereby. If Tenant fails to submit a punch
list to Landlord within such time period, Tenant agrees that it will conclusively be deemed to have
inspected the Tenant Improvements and found them to be in satisfactory condition, with all work
required of Landlord completed. Landlord agrees to complete the punch list items promptly, but in
no event more than forty-five (45) days after submission of the list to Landlord.

     7. Tenant’s Lease Default. Notwithstanding any provision to the contrary contained in
the Lease, if an event of default by Tenant under the Lease, or a default by Tenant under this Work
Letter, has occurred at any time on or before the Substantial Completion of the Tenant
Improvements, then (i) in addition to all other rights and remedies granted to Landlord pursuant to
the Lease, Landlord shall have the right to cause cease the construction of the Tenant Improvements
(in which case, Tenant shall be responsible for any delay in the Substantial Completion of the
Tenant Improvements caused by such work stoppage), and (ii) all other obligations of Landlord under
the terms of this Work Letter shall be forgiven until such time as such default is cured pursuant
to the terms of the Lease.

     8. Warranty. Landlord and Landlord’s contractor will each provide a one year warranty
that the Tenant Improvements have been constructed in accordance with the Plans and Specifications
and

 

 

that such Tenant Improvements will be free from material defects in workmanship and materials for a
one year period following substantial completion of the work as described in the construction
contract between Landlord and its general contractor. Landlord agrees to assign to Tenant any
right that Landlord may against the contractor constructing the Tenant Improvements to correct such
work.

     9. Inspections and Scheduling. Tenant and Tenant’s representatives shall have the
right, from time to time, to observe the progress of the Tenant Improvements, to inspect
installation of the Tenant Improvements, and to reject any Tenant Improvements not in conformance
with the Construction Plans; however, (a) no such observation shall create liability or
responsibility on the part of the Tenant with respect to the nature or quality or the Tenant
Improvements; and (b) Tenant and its representatives may not interfere with the progress of the
work. Landlord shall be available, and cause its general contractor to be available, to Tenant or
its representatives from time to time upon reasonable prior notice when necessary or desirable for
the purpose of reviewing the Tenant Improvements.

 

 

DESIGN SOLUTIONS

FOR THE WORKPLACE

1036 THEALAMEDA

SAN JOSE, CA 95126

t 408.297.8899 f 408.297.8811

5994 WEST LAS POSITAS BLVD. SUITE 201

PLEASANTON, CA 94588

t 925.463.3070 f 925.847.9714

www. aaidesign. com

 

CONCENTRIC

MEDICAL

1380 SHOREBIRDWAY

MOUNTAIN VIEW, CA

 

 

DEMOLITION NOTES

          1. THE GENERAL CONTRACTOR SHALL FURNISH ALL LABOR AND MATERIALS AS REQUIRED TO COMPLETE
DEMOLITION AND REMOVAL OF ALL ITEMS INDICATED ON AAi’S DRAWINGS OR AS OTHERWISE DIRECTED BY THE
OWNER.

          2. THE CONTRACTOR IS TO VIEW AND VERIFY ACTUAL CONDITIONS AT ALL LOCATIONS WHERE ALTERATIONS
TO THE EXISTING BUILDING OCCUR. WHEN WALLS, PARTITIONS, AND OTHER WORK EXISTS WHERE NEW WORK IS
INDICATED, ALL SUCH EXISTING WORK SHALL BE REMOVED. VERIFY ALL SUCH CONDITIONS AT THE SITE.

          3. THE CONTRACTOR SHALL REPORT TO AAi ANY AND ALL CONDITIONS WHICH MAY INTERFERE WITH OR
OTHERWISE AFFECT OR PREVENT THE PROPER EXECUTION AND COMPLETION OF THE WORK OF THIS CONTRACT.

          4. THE GENERAL CONTRACTOR SHALL EXECUTE ALL WORK WITHIN THE REGULATIONS OF THE BUILDING FOR
DEMOLITION AND REMOVAL OF DEBRIS, INCLUDING OVERTIME WORK REQUIRED.

          5. THE GENERAL CONTRACTOR SHALL AT ALL TIMES PROTECT THE PROPERTY OF THE BUILDING LANDLORD
INCLUDING, BUT NOT LIMITED TO FLOOR COVERING, CEILING GRID AND TILE, LIGHT FIXTURES, DOORS,
WINDOWS, FRAMES, HARDWARE, CABINETRY, PLUMBING FIXTURES, ELECTRICAL AND AIR CONDITIONING EQUIPMENT,
PERIPHERAL ENCLOSURES, ETC.

          6. THE GENERAL CONTRACTOR SHALL ERECT ALL NECESSARY PLASTIC DROP CLOTH BARRIERS TO PROTECT
ADJACENT BUILDING PROPERTY WHILE DEMOLITION AND CONSTRUCTION ARE IN PROGRESS.

          7. THE GENERAL CONTRACTOR SHALL SURVEY ALL EXISTING FINISHED SURFACES TO INCLUDE CORNER BEADS,
STOPS, ETC., FOR CHIPS, CRACKS, HOLES, DAMAGED SURFACES, AND ANY OTHER DEFECTS CAUSING AN
APPEARANCE DIFFERENT FROM A NEW, FINISHED, INSTALLATION. THESE DEFECTIVE SURFACES SHALL BE
REPAIRED OR, IF BEYOND REPAIR, THE GENERAL CONTRACTOR SHALL REMOVE ALL EXISTING AND INSTALL NEW
SURFACES TO THE SATISFACTION OF AAi AND THE OWNER.

          8. THE GENERAL CONTRACTOR SHALL INSPECT ALL EXISTING SURFACES AND WHERE AS A RESULT OF
DEMOLITION, FINISHED SURFACES DO NOT ALIGN. THE EXISTING SURFACE SHALL BE CUT AND PATCHED.

          9. ALL DAMAGED EXISTING AREAS TO REMAIN AND EXISTING AREAS AFFECTED BY DEMOLITION OR NEW
CONSTRUCTION WORK SHOWN ON DRAWINGS SHALL BE PATCHED AS REQUIRED TO MATCH IMMEDIATE EXISTING
ADJACENT AREAS IN MATERIAL, FIRE-RATING, FINISH, AND COLOR, UNLESS OTHERWISE NOTED.

          10. ALL WORK DEMOLISHED SHALL BE REMOVED FROM THE PREMISES EXCEPT ITEMS TO BE REUSED OR
RETURNED TO THE OWNER OR AS OTHERWISE DIRECTED.

          11. IN ALL AREAS WHERE DEMOLITION (REMOVAL OF TILE, PARTITIONS, ETC.) CAUSES AN UNEVENNESS IN
THE SLAB, THE CONTRACTOR SHALL PATCH TO LEVEL THE SLAB TO RECEIVE NEW FINISH FLOORING.

          12. ALL EXPOSED LIGHT FIXTURES, WIRING, SWITCHES, CONDUIT, AND METAL MOLDING NOT BEING REUSED
SHALL BE REMOVED AND EITHER STORED OR DISPOSED OF BY THE GENERAL CONTRACTOR AS INSTRUCTED BY THE
OWNER.

          13. THE GENERAL CONTRACTOR SHALL CAP OFF BEHIND FINISHED SURFACES ALL PROJECT PLUMBING, FLOOR
ELECTRICAL/TELEPHONE OUTLETS, AND ALL OTHER PROJECTING ITEMS THAT ARE BEING ABANDONED.

          14. THE GENERAL CONTRACTOR SHALL REMOVE ALL WALL CONDUITS LEFT AFTER WALL DEMOLITION INCLUDING
SWITCH BOXES, PLATES, BRIDGES, OR ANY OTHER TELEPHONE OR ELECTRICAL WIRING OR EQUIPMENT. VERIFY
WITH TENANT REUSE OF EXISTING CABLING PRIOR TO REMOVAL.

          15. ALL “EXISTING TO REMAIN”, “EXISTING”, “RELOCATED”, OR “NEW” ITEMS INSTALLED BY THE GENERAL
CONTRACTOR. IN ADDITION TO BEING AMPLY PROTECTED THROUGHOUT THE PERIOD OF CONSTRUCTION, SHALL BE
THOROUGHLY CLEANED TO THE SATISFACTION OF AAi PRIOR TO BEING TURNED OVER TO THE OWNER.

          16. REFER TO ENGINEERING DRAWINGS FOR REMOVAL AND/OR RELOCATION IF REQUIRED OF HVAC DUCTS,
DIFFUSERS, SPRINKLER HEADS, EXIT LIGHTS, ETC.

          17. ALL DOORS AND FRAMES TO BE REMOVED SHALL BE RETURNED TO OWNER. HANDLE CAREFULLY AND STORE
ON SITE.

          18. REMOVE EXISTING FLOORING IN ROOMS #115, 118, 119, 120, 122, 123, 124 & 125.

          19. REMOVE EXISTING EQUIPMENT IN ROOM #125 UPS SYSTEM & TRANSFER SWITCH.

          20. REMOVE STEEL BOLLARDS (6) FROM LOADING RAMPS.

 

 

DIVCOWEST GROUP

 

 

PATCHING AND CUTTING

          1. GENERAL: AT ALTERED CONSTRUCTION, REPAIR CUT EDGES, REPLACE CONSTRUCTION AND FIT
NEW TO EXISTING CONSTRUCTION AS REQUIRED TO MATCH EXISTING WORK. MAKE JOINTS OF NEW AND EXISTING
PATCHES SMOOTH, EVEN, AND PRACTICALLY INVISIBLE. WHERE NEW PAINT OR OTHER FINISHES ARE JOINED,
CARRY TO NEAREST BREAK IN SURFACES, CORNER, OR OTHER BREAK IN CONSTRUCTION AS REQUIRED FOR NEAT
FINISHED APPEARANCE.

          2. CONCRETE: WHERE FLOORS REQUIRE LEVELING, PROVIDE MINIMUM 2,500 PSI AT 28 DAYS
PORTLAND CEMENT. COAT CONCRETE JOINED WITH NEW CONCRETE WITH CONCRETE BOND; MIX AND APPLY IN
STRICT ACCORDANCE WITH MANUFACTURER’S RECOMMENDATIONS FOR THE CONDITIONS OF THE APPLICATION.

          3. CONCRETE CONSTRUCTION: SAW-CUT WITH DIAMOND SAW; JACKHAMMER WILL NOT BE PERMITTED,
EXCEPT WITH THE EXPRESSED PERMISSION OF THE LANDLORD. CUT IN ACCURATELY LOCATED, STRAIGHT LINES,
AND BREAK OUT SECTIONS. FLOORS MAY BE CORE DRILLED WHERE APPROPRIATE FOR INSTALLATION OF PIPES AND
SIMILAR ITEMS. WHERE EXISTING PIPING AND OTHER SIMILAR ITEMS ARE UNDER EXISTING SLABS, EXERCISE
CARE TO PROTECT FROM DAMAGE. EXERCISE CARE WHEN CUTTING ADJACENT TO EXISTING WALLS TO AVOID DAMAGE
TO WALLS; IF DAMAGED, REPAIR AS REQUIRED. WHERE NEW CONCRETE SLABS ARE TO BE INSTALLED, VERIFY
COMPACTION UNDER NEW CONSTRUCTION IS NINETY-FIVE PERCENT (95%) OF OPTIMUM DENSITY.

          4. DOORS AND FRAMES: IF DOORS AND FRAMES ARE TO BE REUSED FOR THIS WORK, CAREFULLY
REMOVE DOORS FROM FRAMES AND REMOVE FRAMES FROM OPENING, TAKING CARE TO AVOID DAMAGE. REMOVE
HARDWARE, CLEAN REFURBISH, AND STORE FOR REINSTALLATION REPAIR AND REWORK FRAMES AND DOORS AS
REQUIRED FOR REINSTALLATION WHERE INDICATED. FOR DOORS AND FRAMES TO BE SALVAGED, CAREFULLY REMOVE
FROM OPENING AND DELIVER FOR STORAGE WHERE DIRECTED.

 

 

CONSTRUCTION NOTES

1. VERIFY ALL DIMENSIONS IN HELD PRIOR TO CONSTRUCTION.

2. “ALIGN” SHALL MEAN TO ACCURATELY LOCATE FINISH FACES IN THE SAME PLANE.

3. “SIMILAR” MEANS COMPARABLE CHARACTERISTICS FOR THE CONDITION NOTED. VERIFY DIMENSIONS AND
ORIENTATION ON PLANS AND ELEVATIONS.

4. EXTINGUISHERS SHALL BE PROVIDED IN ACCORDANCE WITH FIRE DEPARTMENT REQUIREMENTS. SEE “F.E.C.”
ON PLANS. FIRE EXTINGUISHERS SHALL BE ENCLOSED IN SEMI-RECESSED CABINET. OPENING HARDWARE SHALL
BE 48” MAX. ABOVE FINISHED FLOOR.

5. CAULK SOUND WALLS AT FLOOR FOR ACOUSTICAL SEPARATION.

6. FINISH SHEETROCK COMPLETELY TO FLOOR TO INSURE A SOLID WALL BASE INSTALLATION.

7. INSTALL WATER RESISTANT GYPSUM-BOARD IN AREAS EXPOSED TO MOISTURE.

8. CENTER WALLS ON WINDOW MULLIONS WHERE SHOWN ON PLAN. SEE DETAIL:                     .

9. ADJUST PARTITION THICKNESS AND CAVITY FOR INTERNAL INCLUSIONS, SUCH AS PLUMBING AND FOR CORRECT
INSTALLATION OF FIXTURES, PANELS, BOXES, ETC.

10. CONTRACTOR SHALL COORDINATE AND PROVIDE BLOCKING IN PARTITIONS FOR ALL MILLWORK AND WALL
ATTACHED ITEMS AS REQUIRED.

11. ROOMS #100 & 104 SHALL BE ONE-HOUR, FIRE-RATED CONSTRUCTION. VERIFY EXISTING CONSTRUCTION AND
MODIFY AS REQUIRED TO MEET BUILDING CODE REQUIREMENTS.

12. PROVIDE HOT AND COLD WATER LINES AND DRAIN LINE FOR NEW SINK AND FAUCET IN ROOM #118, 123 &
127. SEE PLUMBING FIXTURE AND APPLIANCE SCHEDULE SHEET                      FOR FIXTURE TYPES.

13. PROVIDE HOT AND COLD WATER AND DRAIN LINE FOR NEW SHOWER IN ROOM #130.

14.                      CUT FOR WATER AND SEWER LINES AT ROOM #118, 123, 127 & 130. SEE DETAIL
                    .

15. PLUMBING WORK SHALL BE DESIGNED AND BUILT IN ACCORDANCE WITH APPLICABLE CODES AND STANDARDS,
AND SHALL COMPLY WITH UNIFORM PLUMBING CODE REQUIREMENTS. CONTRACTOR IS RESPONSIBLE FOR OBTAINING
SEPARATE PERMIT.

16. PROVIDE SUBMITTALS FOR APPLIANCES AND EQUIPMENT FOR APPROVAL BY AAi PRIOR TO ORDER PLACEMENT OR
INSTALLATION.

17. ALL GLAZING SHALL MEET THE REQUIREMENT OF CBC CHAPTER 24. PROVIDE TEMPERED GLASS WHERE
REQUIRED.

18. PRIOR TO APPLICATION OF PAINT, ALL SURFACES SHALL BE PROPERLY PREPARED, TAPED AND FURNISHED TO
MATCH EXISTING.

19. VERIFY EXISTING CONDITIONS FOR NEW EXTERIOR DOOR LOCATED AT ROOMS #105 & 124. AN ACCESSIBLE
EXIT IS REQUIRED. MODIFY EXISTING LANDSCAPING AND IRRIGATION SYSTEM, AND PROVIDE A NEW SIDEWALK
WITH RAMP/RAILING/ETC. SEE DETAIL.

20. THE GENERAL CONTRACTOR SHALL FIELD-VERIFY EXISTING ROOF INSULATION, AND PROVIDE AN ALLOWANCE TO
REPLACE MISSING OR DEFICIENT UNITS AS REQUIRED BY THE BUILDING DEPARTMENT.

21. PROVIDE COMPRESSED AIR DROPS IN ROOMS #118, 122, 123, & 124. COMPRESSOR EQUIPMENT IS TENANT
PROVIDED.

22. REMOVE EXISTING VENT AND INSTALL NEW ROLL-UP DOOR IN ROOM #125. REMOVE EXISTING FURRING AND
INSTALL NEW ROLL-UP DOOR IN ROOM #124.

23. PROVIDE POSITIVE PRESSURE FROM ROOM #118 TO CORRIDOR #104.

24. PROVIDE POSITIVE PRESSURE FROM ROOM #120 TO CORRIDOR #104.

25. PROVIDE NEW 52 GALLON ELECTRIC HOT WATER HEATER.

26. PROVIDE STAINLESS STEEL BENCH ACROSS ROOM #118.

27. PROVIDE DISHWASHER IN ROOM #118.

 

 

CEILING NOTES

1. TYPICAL CEILING HEIGHT SHALL MATCH EXISTING ABOVE UNFINISHED FLOOR U.O.N.

2. ALL LIGHT FIXTURES AND HVAC SHALL BE LOCATED ON CEILING GRID U.O.N. ALL RECESSED
DOWNLIGHTS/WALLWASHERS SHALL BE LOCATED IN THE CENTER OF EACH ONE, U.O.N.

3. NOTIFY AAi OF ANY CONFLICTS WITH THE SUSPENDED CEILING GRID SYSTEM, HVAC, OR SPRINKLER FIXTURES
PRIOR TO INSTALLATION. ALL FIXTURE RELOCATION IS SUBJECT TO AAi APPROVAL.

4. PROVIDE EMERGENCY LIGHTING AND ILLUMINATED EXIT LIGHT FIXTURES AS REQUIRED BY THE BUILDING
DEPARTMENT AND PER CBC SECTION 1003.2.8 & 1003.2.9.

5. ALL CEILING FIXTURES AND WIRING FOR LIGHT FIXTURES, EXIT SIGNS, OR OTHER ELECTRICAL DEVICES
SHALL BE U.L. APPROVED, THERMALLY PROTECTED, AND SHALL BE INSTALLED IN CONDUIT OR OTHER WIRING
METHOD APPROVED BY THE BUILDING DEPARTMENT.

6. LIGHT FIXTURE SWITCHING SHALL CONFORM TO TITLE 24 REQUIREMENTS. DOUBLE SWITCH EACH FIXTURE
SEPARATELY. EACH SWITCH SHALL CONTROL 33-67% OF LAMPS PER FIXTURE. ADDITIONALLY, LIGHT FIXTURES
IN AREA OF WORK WITHIN 15’–0” OF EXTERIOR GLASS SHALL BE DOUBLE SWITCHED SEPARATELY PER CODE
REQUIREMENTS.

7. ALL SWITCHES, RHEOSTATS, AND OTHER WALL MOUNTED CONTROL DEVICES SHALL BE MOUNTED AT 48” ABOVE
UNFINISHED FLOOR, U.O.N.

8. WHERE SWITCHES ARE SHOWN ADJACENT TO EACH OTHER, THEY SHALL BE GANGED AND COVERED BY A SINGLE
PLATE. COLOR OF COVER PLATES. RECEPTACLES AND SWITCHES SHALL MATCH EXISTING.

9. ALL NEW AND EXISTING CEILING SYSTEM IN AREAS OF WORK SHALL HAVE SEISMIC BRACING AS REQUIRED BY
APPLICABLE CODES. SEE DETAIL:                     .

10. PROVIDE FIRE DAMPERS AT ALL PENETRATIONS ABOVE SUSPENDED CEILING AS REQUIRED. DAMPERS FOR
PENETRATIONS THROUGH FIRE-RATED CONSTRUCTION SHALL BE FIRE/SMOKE WITH SMOKE ACTIVATION AS REQUIRED
BY CBC SECTION 713.10 AND 713.11.

11. PROVIDE DRAFT STOPS IN COMPLIANCE WITH 1997 CBC, SECTION 708.3. MAXIMUM AREA BETWEEN DRAFT
STOPS SHALL BE 9,000 SQ. FEET FOR ATTIC SPACES AND 3,000 SQ. FEET FOR FLOOR/CEILING ASSEMBLIES.
THE GREATEST HORIZONTAL DIMENSION BETWEEN DRAFT STOPS SHALL NOT EXCEED 100 FEET.

12. SUBMITTALS FOR ALL LIGHT FIXTURES AND SHOP DRAWINGS FOR ALL LIGHT FIXTURES ARE REQUIRED FOR
APPROVAL BY AAi PRIOR TO PURCHASE OF MATERIALS/FIXTURES.

13. REPLACE ALL DAMAGED CEILING TILES AND GRID MEMBERS THROUGHOUT AREA OF WORK.

14. ALL LIGHT FIXTURES SHALL BE FULLY OPERATIONAL. REPLACE LAMPS, REPAIR BALLASTS, AND CLEAN OR
REPLACE LENSES AS REQUIRED THROUGHOUT AREA OF WORK.

15. THIS DRAWING IS FOR LAYOUT PURPOSES ONLY. ENGINEERING OF SWITCHING AND CIRCUITRY SHALL BE
PROVIDED BY THE ELECTRICAL CONTRACTOR IN ACCORDANCE WITH APPLICABLE BUILDING CODES AND REGULATIONS
FOR BUILDING LIFE SAFETY, EMERGENCY, EGRESS AND NIGHT LIGHTS. SEE ELECTRICAL NOTES.

16. SEE MECHANICAL DRAWINGS FOR HVAC DUCTING.

 

 

HVAC NOTES

1. DESIGN-BUILD MECHANICAL WORK SHALL BE DESIGNED AND BUILT IN ACCORDANCE WITH APPLICABLE CODES AND
STANDARDS AND SHALL COMPLY WITH THE REQUIREMENTS OF CALIFORNIA ADMINISTRATIVE CODE, TITLE 24.
CONTRACTOR SHALL BE RESPONSIBLE FOR OBTAINING SEPARATE PERMIT.

2. PROVIDE STANDARD HEATING AND AIR CONDITIONING THROUGHOUT THE AREA OF WORK. MODIFY THE EXISTING
HVAC SYSTEM FOR NEW CONSTRUCTION. ADJUST THERMOSTATS, PROVIDE SUPPLIES AND RETURNS, AND BALANCE
THE SYSTEM AS REQUIRED. PROVIDE CONDENSATE RETURN AS REQUIRED BY CODE.

3. PROVIDE FIRE DAMPERS AT ALL PENETRATIONS ABOVE SUSPENDED CEILING AS REQUIRED. DAMPERS FOR
PENETRATIONS THROUGH FIRE RATED CONSTRUCTION SHALL BE FIRE/SMOKE WITH SMOKE ACTIVATION AS REQUIRED
BY CBC SECTION 713.10 AND 713.11.

4. THERMOSTATS SHALL BE LOCATED AT 48” ABOVE UNFINISHED FLOOR NEXT TO SWITCHES UNLESS OTHERWISE
NOTED.

5. SUBMITTALS FOR THERMOSTATS, INCLUDING SPECIFICATIONS AND LOCATIONS ARE REQUIRED FOR APPROVAL BY
AAi PRIOR TO PURCHASE OF MATERIALS.

6. PROVIDE EXHAUST VENT IN ROOM #122 TO BE CONNECTED TO TENANT’S EQUIPMENT. PROVIDE ROOF
PATCHING/REPAIR, WHERE REQUIRED.

7. PROVIDE A SEPARATE ZONE WITH A SEPARATE THERMOSTAT CONTROL FOR ROOM #121.

8. PROVIDE HEPPA FILTERS AT ROOMS #118 & 120. PROVIDE CEILING BRACING AND SUPPORT AS REQUIRED BY
CODE.

9. CLEAN ROOM #122: PROVIDE DESIGN FOR CLASS 100,000 CLEAN ROOM, 14 OCCUPANTS, 24/7 OPERATION.
POSITIVE PRESSURE TO ALL ADJOINING ROOMS HAVING ENTRY TO CLEAN ROOM. PROVIDE PRESSURE DIFFERENTIAL
GAUGES, WITH DELAYED VISUAL & AUDIBLE ALARMS BETWEEN CLEAN ROOM #122 & GOWNING #118 AND BETWEEN
CLEAN ROOM #122 AND VESTIBULE #120 & #122 TO 121, BETWEEN #118 & 104 AND BETWEEN #120 & 104.
PROVIDE (2) DOUBLE WALL VENTS, ATTACH TO EXISTING BLOWERS MOUNTED TO OVENS. TERMINATE THROUGH ROOF
WITH APPROVED VENT CAPS.

10. ENGINEERING LAB #123: PROVIDE COOLING AND ALL PRIMARY DUCTWORK FOR FUTURE CLASS 100,000 CLEAN
ROOM. INSTALL PERFORATED T-BAR DIFFUSERS, SIZED AND SUITABLE TO BE REPLACED WITH HEPPA FILTERS. 11
OCCUPANTS.

11. PROVIDE THERMOSTATICLY CONTROLLED EXHAUST FAN AND OUTSIDE MAKE-UP AIR DESIGNED FOR 10 CHANGES
PER/HR. AT ROOM #124A.

12. INSTALL EXHAUST FAN IN NEW SHOWER RM. #130.

13. PROVIDE VAV BOX & THERMOSTAT AT EQUIPMENT LAB #124.

14. RELOCATE (2) EXISTING WALL HVAC UNITS & WATER LINE FROM #125C TO 101A.

 

 

FIRE SPRINKLER NOTES

1. EXISTING FIRE SPRINKLER SYSTEM SHALL BE MODIFIED AS REQUIRED FOR NEW CONSTRUCTION.
DESIGN/BUILD FIRE PROTECTION SHALL BE DESIGNED AND BUILT IN ACCORDANCE WITH APPLICABLE CODES AND
STANDARDS. AUTOMATIC FIRE SPRINKLER SYSTEM PLANS SHALL BE REVIEWED AND APPROVED BY THE FIRE
DEPARTMENT. CONTRACTOR SHALL BE RESPONSIBLE FOR OBTAINING SEPARATE PERMIT.

2. SPRINKLER HEADS SHALL BE INSTALLED IN STRAIGHT, SYMMETRICAL LINES, AND CENTERED IN
CEILING TILES.

3. NEW SPRINKLER HEADS SHALL MATCH EXISTING.

4. SUBMIT SPRINKLER PLANS TO AAi FOR APPROVAL PRIOR TO PURCHASE AND FABRICATION OF
MATERIALS.

FINISH NOTES

1. INSURE SURFACES TO RECEIVE FINISHES ARE CLEAN, TRUE, AND FREE OF IRREGULARITIES. DO
NOT PROCEED WITH WORK UNTIL UNSATISFACTORY CONDITIONS HAVE BEEN CORRECTED. COMMENCEMENT OF WORK
SHALL INDICATE APPLICATOR’S ACCEPTANCE OF SUBSTRATE.

2. REPAIR AND PREPARE EXISTING SURFACES SHOWN TO REMAIN AS REQUIRED FOR APPLICATION OF NEW
FINISHES.

3. REMOVE EXISTING FLOOR FINISHES AND PREPARE SUBFLOOR AS REQUIRED FOR NEW FLOOR FINISHES.

4. CARPET SHALL BE DIRECT GLUE-DOWN INSTALLATION IN ACCORDANCE WITH THE MANUFACTURER’S
RECOMMENDATIONS FOR ADHESIVE AND DIRECT GLUE TECHNIQUES.

5. ALL PARTITIONS, COLUMNS, AND EXTERIOR WALLS SHALL RECEIVE RESILIENT BASE UNLESS
OTHERWISE NOTED. INSTALL COVED TOP SET BASE AT ROOMS WITH RESILIENT FLOOR COVERING AND STRAIGHT,
CARPET SET BASE AT CARPETED AREAS, U.O.N. PATCH AND REPAIR EXISTING BASE TO REMAIN AS REQUIRED.

6. INSTALL RESILIENT “DOME” TYPE FLOOR FINISH TRANSITION STRIP WHERE TRANSITIONS OCCUR
BETWEEN TWO DIFFERENT FLOOR FINISHES.

7. ALL ACCESS PLATES, PANEL BOXES, ETC. SHALL BE PAINTED TO MATCH ADJACENT WALL. IF
ADJACENT WALL IS FINISHED WITH WALL COVERING, PAINT SHALL BE SPECIFIED BY AAi.

8. CONTRACTOR SHALL PROVIDE (3) 8-1/2” X 11” SAMPLE BRUSH-OUTS OF EACH PAINT COLOR TO AAi
FOR APPROVAL 2 WEEKS PRIOR TO COMMENCEMENT OF WORK. APPROVAL IS REQUIRED, PRIOR TO PURCHASE OF
PAINT.

9. REFER TO SPECIFICATION SHEET FOR PAINT FINISH SPECIFICATIONS.

10. ALL TRANSITIONS BETWEEN MATERIALS SHALL BE SMOOTH.

11. MAXIMUM VERTICAL CHANGE IN FINISH FLOOR LEVEL SHALL BE 1/4”.

12. ALL FINISH MATERIALS SHALL BE SUBMITTED TO AAi FOR APPROVAL PRIOR TO PURCHASE OF
MATERIALS.

13. ALL EXTERIOR WINDOWS SHALL RECEIVE BUILDING STANDARD BLINDS. PROVIDE NEW IF REQUIRED
DUE TO NEW CONSTRUCTION, AND WHERE DAMAGED OR MISSING. ADJUST BLIND WAND CONTROLS AS NECESSARY.

 

 

MILLWORK NOTES

1.      ALL WORK, MATERIALS, ETC., SHALL CONFORM TO W.I.C. STANDARDS FOR CUSTOM GRADE.

2.      CABINETS SHALL BE FLUSH OVERLAY CONSTRUCTION.

3.      ALL CONCEALED SURFACES SHALL BE MELAMINE, DECOLAM OR APPROVED EQUAL LOW-PRESSURE LAMINATE. COLOR: WHITE.

4.      ALL EXPOSED AND SEMI-EXPOSED SURFACES SHALL BE PLASTIC LAMINATE.

5.      HINGES SHALL BE EUROPEAN STYLE, OPEN TO 120 DEGREES.

6.      DRAWER SLIDES SHALL BE GROSS, BLUM, OR EQUAL AND MUST BE RATED FOR 75 LB. LOAD & 7/8 EXTENSION.

7.      INTERIOR SHELVES SHALL BE PEGGED, ADJUSTABLE.

8.      INSTALL THE FOLLOWING PULLS ON ALL DRAWERS AND DOORS:

	 
	 	 	 	PULLS:                     

FINISH:                     

9.      PROVIDE RECESSED LIGHTING UNDER CABINET AS SHOWN ON PLAN AND ELEVATIONS. LIGHT
FIXTURE SHALL BE CONTINUOUS AND SHALL EXTEND ACROSS THE FULL LENGTH OF THE UPPER CABINETS, U.O.N.
ON ELEVATIONS. LIGHT FIXTURES SHALL BE FULLY CONCEALED. SEE REFLECTED CEILING PLAN FOR FIXTURE
SPECIFICATION.

10.      CABINETS AND COUNTER TOPS SHALL BE ANCHORED AND SCRIBED TO ADJACENT SURFACES.

11.      ON-SITE MEASUREMENTS ARE THE RESPONSIBILITY OF THE SUBCONTRACTOR.

12.      SUBCONTRACTOR SHALL VERIFY ALL APPLIANCE AND PLUMBING FIXTURE DIMENSIONS. SEE
SPECIFICATIONS:                     .

13.      DRAWINGS ARE FOR DESIGN PURPOSES ONLY. SHOP DRAWINGS SHALL BE SUBMITTED TO AAi
FOR APPROVAL PRIOR TO CONSTRUCTION.

14.      BY APPROVING AND SUBMITTING SHOP DRAWINGS AND SAMPLES, CONTRACTOR REPRESENTS THAT
HE HAS DETERMINED AND VERIFIED FIELD MEASUREMENTS, FIELD CONSTRUCTION CRITERIA, MATERIALS, CATALOG
NUMBERS, AND SIMILAR DATA AND THAT EACH SUBMITTAL HAS BEEN CHECKED AND COORDINATED WITH CONTRACT
REQUIREMENTS. REVIEW OF SHOP DRAWINGS BY AAi SHALL BE FOR DESIGN CONCEPT ONLY. CONTRACTOR IS
RESPONSIBLE FOR ACCURACY OF SHOP DRAWINGS, PROPER FITTINGS, COORDINATION OF WORK, CONSTRUCTION
TECHNIQUES, MATERIALS, AND WORK REQUIRED BY CONTRACT DOCUMENTS.

 

 

DOOR AND HARDWARE NOTES

1. ALL DOORS, FRAMES AND HARDWARE SHALL BE FIRE-RATED ASSEMBLIES WITH APPROVED LABELS WHERE
SPECIFIED ON PLANS AND/OR DOOR SCHEDULE. ALL 20-MINUTE FIRE-RATED ASSEMBLIES SHALL HAVE AN “S”
LABEL PER UBC 1004.3.4.3.2.1.

2. EXIT DOORS SHALL BE OPERABLE FOR EGRESS WITHOUT ANY SPECIAL EFFORT, KNOWLEDGE, OR KEY PER UBC
1003.3.1.8.

3. ALL HAND ACTIVATED DOOR OPENING HARDWARE SHALL BE CENTERED BETWEEN 30 INCHES AND 44 INCHES ABOVE
THE FLOOR. LATCHING AND LOCKING DOORS THAT ARE HAND ACTIVATED AND WHICH ARE IN A PATH OF TRAVEL,
SHALL BE OPERABLE WITH A SINGLE EFFORT BY LEVER TYPE HARDWARE, BY PANIC BARS, BY PUSH-PULL
ACTIVATING BARS, OR BY OTHER HARDWARE DESIGNED TO PROVIDE PASSAGE WITHOUT REQUIRING THE ABILITY TO
GRASP THE OPENING HARDWARE.

4. MAXIMUM EFFORT TO OPERATE DOORS SHALL NOT EXCEED 8-1/2 LBS. FOR EXTERIOR DOORS AND 5 LBS. FOR
INTERIOR DOORS. SUCH PULL OR PUSH EFFORT BEING APPLIED AT RIGHT ANGLES TO HINGED DOORS AND AT THE
CENTER PLAN OF SLIDING OR FOLDING DOORS.

5. NEW AND EXISTING DOOR CLOSERS MUST BE ADJUSTED SO THAT FROM AN OPEN POSITION OF 70 DEGREES, THE
DOOR WILL TAKE AT LEAST 3 SECONDS TO MOVE TO A POINT 3” FROM THE LATCH, MEASURED TO THE LEADING
EDGE OF THE DOOR.

6. THRESHOLDS AT DOORWAYS SHALL NOT EXCEED 1/2” IN HEIGHT. RAISED THRESHOLDS AND FLOOR LEVEL
CHANGES AT ACCESSIBLE DOORWAYS SHALL BE BEVELED WITH A SLOPE NO GREATER THAN 1:2 IF MORE THAN 1/4”
PER CBC 1003.3.1.6.

7. ALL REQUIRED EXIT DOORS SHALL HAVE A MINIMUM 32” CLEAR OPENING AT 90 DEGREES.

8. FOR ALL REQUIRED EXIT DOORS, WIDTH AND CLEAR AREA ON THE SWING SIDE OF THE DOOR SHALL EXTEND 24”
PAST STRIKE EDGE FOR EXTERIOR DOORS, AND 18” PAST STRIKE EDGE FOR INTERIOR DOORS.

9. CONTRACTOR SHALL COORDINATE THE FITTING OF ALL DOORS PER THE SPECIFICATIONS ONCE THE FINISH
FLOORING HAS BEEN INSTALLED.

10. UNDERCUT DOORS SO THAT THE BOTTOM OF THE DOOR IS 1/8” MINIMUM AND 1/4” MAXIMUM ABOVE FINISHED
FLOOR MATERIAL

11. FIELD MEASURE OPENINGS TO ASSURE PROPER FIT.

12. COORDINATE DOOR FRAME JAMB THROAT DIMENSION WITH PARTITION WIDTH, INCLUDING THE DEPTH OF ANY
APPLIED FINISHES AND EXTRA LAYERS OF GYP. BOARD.

13. AT THE HINGE SIDE, LOCATE THE FACE OF THE DOOR JAMB SO THAT THE FACE OF THE DOOR IN THE OPEN
POSITION IS 4” FROM THE NEAREST RETURNING PARTITION AND ALLOW FOR A 90 DEGREE SWING. SEE DETAIL:                     

14. INSTALL DOORS COMPLETE WITH HARDWARE FITTINGS AND ACCESSORIES. WHETHER SPECIFIED OR NOT,
REQUIRED FOR THE PROPER OPERATION OF THE SPECIFIC OPENINGS, TO MAINTAIN THE SPECIFIED FIRE RATED
ASSEMBLY AND TO MEET CURRENT ACCESSIBILITY REQUIREMENTS.

15. NEOPRENE SOUND-STRIP ALL DOORS AT HEAD AND JAMB.

16. COORDINATE ALL LOCKING, LATCHING AND KEYING REQUIREMENTS FOR THE BUILDING USE AND SECURITY WITH
THE TENANT REPRESENTATIVE PRIOR TO ORDERING AND INSTALLING HARDWARE.

17. INSTALL HARDWARE ACCORDING TO THE STANDARDS AND REQUIREMENTS OF THE MANUFACTURER.

18. TEST AND ADJUST DOORS FOR SMOOTH, QUIET OPERATION.

19. TOUCH-UP AND REPAIR ALL IMPERFECTIONS IN METAL FRAMES.

20. HARDWARE SUBMITTALS ARE REQUIRED FOR APPROVAL BY AAi PRIOR TO ORDER PLACEMENT OR INSTALLATION.

21. BUILDING STANDARD DOORS SHALL MATCH EXISTING. BUILDING STANDARD FRAMES SHALL MATCH EXISTING.
BUILDING STANDARD HARDWARE FINISH SHALL MATCH EXISTING.

 

 

POWER AND SIGNAL NOTES

1. DESIGN BUILD ELECTRICAL WORK SHALL BE DESIGNED AND BUILT IN ACCORDANCE WITH NATIONAL
ELECTRICAL CODE AND APPLICABLE CODES AND STANDARDS. ELECTRICAL DEVICES AND ALL WIRING FOR
ELECTRICAL OUTLETS, CONTROL DEVICES, OR OTHER ELECTRICAL DEVICES SHALL BEAR APPROVAL OF
UNDERWRITER’S LABORATORIES AND SHALL BE INSTALLED IN CONDUIT OR OTHER WIRING METHOD APPROVED BY THE
BUILDING DEPARTMENT. CONTRACTOR SHALL BE RESPONSIBLE FOR OBTAINING SEPARATE PERMIT.

2. ELECTRICAL CONTRACTOR SHALL PROVIDE ALL NECESSARY ENGINEERING AND DOCUMENTATION FOR
COMPLIANCE WITH TITLE 24.

3. PENETRATIONS OF FIRE WALLS BY APPROVED CABLES SHALL BE THROUGH CONDUIT SLEEVES
EXTENDING A MINIMUM OF 12” EACH SIDE OF WALL.

4. ELECTRICAL ITEMS ARE SHOWN ON PLAN FOR LOCATION ONLY. SEE ELECTRICAL SUBCONTRACTOR
SHEETS FOR CIRCUITING.

5. INDICATED DIMENSIONS ARE TO THE CENTERLINE OF THE OUTLET OR CLUSTER OF OUTLETS, UNLESS
OTHERWISE NOTED. WHERE ELECTRICAL OUTLETS, TELEPHONE/DATA OUTLETS, ETC. ARE SHOWN ADJACENT, OR
GROUP TOGETHER AS CLOSELY AS POSSIBLE AS SHOWN ON PLAN, IF NOT DIMENSIONED.

6. STANDARD ELECTRICAL WALL OUTLETS SHALL BE MOUNTED VERTICALLY, AT 18” ABOVE UNFINISHED
FLOOR TO CENTER OF BOX, U.O.N.

7. FOR OUTLETS INDICATED AT SPECIAL MOUNTING HEIGHTS, MOUNTING HEIGHT SHALL BE MEASURED
FROM UNFINISHED FLOOR TO CENTER OF BOX.

8. WHERE OUTLETS OCCUR ABOVE COUNTERTOP, INSTALL 1” ABOVE COUNTER TOP OR                     
SPLASH MEASURED FROM BOTTOM EDGE OF OUTLET FACEPLATE TO TOP OF CABINETRY, UNLESS OTHERWISE NOTED.

9. ELECTRICAL CONTRACTOR SHALL VERIFY EXACT MOUNTING HEIGHT OF CABINET FIXTURES WITH
CABINET MAKER.

10. WHERE OUTLETS ARE SHOWN BACK TO BACK, INSTALL ON OPPOSITE SIDES OF STUD AND INSULATE
BETWEEN.

11. TENANT SHALL PROVIDE TELEPHONE AND DATA CABLING . ALL NEW AND EXISTING TELEPHONE AND
DATA OUTLETS SHALL HAVE PULL STRINGS. VERIFY WITH TENANT THE RE-USE OF EXISTING CABLING PRIOR TO
REMOVAL.

12. ALL ELECTRICAL DEVICES (SWITCHES, OUTLETS, ETC.) SHALL BE THE SAME COLOR AS THE COVER
PLATE UNLESS OTHERWISE NOTED. COLOR SHALL MATCH EXISTING.

13. ALL EXISTING TELEPHONE AND ELECTRICAL OUTLETS SHALL REMAIN UNLESS AFFECTED BY NEW
CONSTRUCTION.

14. ALL ABANDONED ELECTRICAL CIRCUITS SHALL BE TAKEN BACK TO THE APPROPRIATE SUBPANEL.
PULL ALL ABANDONED WIRES FROM CONDUIT.

15. PROVIDE COVER PLATES FOR ALL NEW AND EXISTING OUTLETS.

16. ELECTRICAL CONTRACTOR SHALL VERIFY THAT ADEQUATE ELECTRICAL POWER IS AVAILABLE TO THE
SPACE AND SHALL PROVIDE ELECTRICAL POWER AS INDICATED ON                     .

17. UPON COMPLETION OF WORK, LABEL ELECTRICAL PANELS TO REFLECT AS-BUILT CONDITIONS.

18. PROVIDE (4) AUTO-ACTIVATED HAND DRYERS IN RM. #118.

 

 

SPECIFIC COST-OUT NOTES

1. PROVIDE THE FOLLOWING NEW CABINETRY:

RM. #118: NEW LOWER CABINET W/ COUNTER TOP AND 4” H. BACKSPLASH SHALL RECEIVE (1) ADJUSTABLE SHELF
WITH HINGED DOORS AND DRAWERS ABOVE. RM. #123: NEW LOWER CABINET W/ COUNTER TOP AND 4” H.
BACKSPLASH SHALL RECEIVE (1) ADJUSTABLE SHELF WITH HINGED DOORS AND DRAWERS ABOVE. RM. #115 & 127:
NEW LOWER CABINET W/ COUNTER TOP AND 4” H. BACKSPLASH SHALL RECEIVE (1) ADJUSTABLE SHELF WITH
HINGED DOORS AND DRAWERS ABOVE. NEW UPPER CABINETS SHALL RECEIVE (2) ADJUSTABLE SHELVES WITH
HINGED DOORS AND RECESSED UNDER CABINET LIGHTING FOR THE FULL LENGTH OF CABINETS. SEE “CABINET
NOTES”. RELOCATE (E) DISHWASHER FROM #127A TO NEW CABINETS IN #127.

2. PROVIDE (9) (CEILING/FLOOR/WALL) MOUNTED JUNCTION BOXES WITH (4) DEDICATED CIRCUITS IN
ROOM #105/106 FOR N.I.C. ELECTRIFIED FURNITURE PANEL SYSTEM PROVIDED BY TENANT. TENANT SHALL
PROVIDE HARDWIRE CONNECTION TO BUILDING POWER.

3. ALL EXISTING CEILINGS AND LIGHT FIXTURES SHALL REMAIN THROUGHOUT UNLESS OTHERWISE
NOTED. ADJUST CEILING GRID, LIGHT FIXTURES AND SWITCHES AS REQUIRED FOR NEW CONSTRUCTION. PROVIDE
AN ALLOWANCE FOR NEW BUILDING STANDARD LIGHT FIXTURES IF REQUIRED DUE TO NEW LAYOUT. REPLACE
DAMAGED CEILING TILES OR GRID MEMBERS. ALL LIGHT FIXTURES SHALL BE FULLY OPERATIONAL.

4. PAINT ALL NEW CONSTRUCTION AND TOUCH UP EXISTING AS REQUIRED. WALL TEXTURE AND PAINT
FINISH SHALL MATCH EXISTING.

5. PATCH CARPET AND WALL BASE IN ROOMS #101 TO MATCH EXISTING AS REQUIRED.

6. PROVIDE NEW HOT & COLD WATER, DRAIN LINE AND STAINLESS STEEL/SINK WITH GOOSENECK FAUCET
IN ROOMS #118, 127 & (2) IN 123.

7. PROVIDE JANITORIAL FLOOR SINK IN ROOM #119. PROVIDE FREESTANDING DEEP BOWL HANDWASH
SINK IN ROOM #118.

8. PROVIDE NEW FIBERGLASS SHOWER IN ROOM #130 W/ ACCESSORIES.

9. ADD SUSPENDED CEILING TO MATCH EXISTING IN WAREHOUSE #125. UTILIZE EXISTING 2’ X 4’
PARABOLIC LIGHT FIXTURES.

10. PROVIDE NEW 2’ X 4’ FLUORESCENT LIGHT FIXTURES WITH PRISMATIC LENSES IN RMS. #118,
122, 123 & 124.

11. PROVIDE NEW SUSPENDED CEILING SYSTEM, 1 1/2” GRID GASKETED & VINYL COVERED CEILING
TILE IN RMS. #118, 122, 123 & 124 TO MEET CLASS 100,000 CLEAN ROOM REQUIREMENTS.

12. RELOCATE EXISTING INDIRECT LIGHTING WHERE NEW OFFICES ARE BEING CONSTRUCTED. RE-USE
EXISTING PARABOLIC FIXTURES IN WAREHOUSE #125, MAIL/COPY #115, LAB #125B & VESTIBULE #120.

13. PROVIDE 5’ WIDE WALL CABINET IN RM. #118 TO 6’–0” HIGH, 12” X 12” CUBBIES, 30 CUBBIES
TOTAL. FINISH TO BE WHITE MELAMINE.

14. RMS. #118, 122, 123 & 124 SHALL BE PAINTED WITH EGGSHELL LATEX PAINT.exv10w7

 

Exhibit 10.7

301 East Evelyn Avenue

Mountain View, California 94039

SUBLEASE 

Execution Date: April 19, 2007

     Reference is made to a certain Lease dated May 24, 2005 by and between SFERS REAL ESTATE CORP.
U, as Landlord (“Landlord”) and Cytyc Surgical Products, as Tenant (“Sublandlord”), with respect to
the entire interior of the building located at 301 East Evelyn Avenue, Mountain View, California
(the “Premises”), a copy of which is attached hereto as Exhibit A (the “Lease”).

     WHEREAS, Concentric Medical, Inc. (“Subtenant”) desires to sublease the Premises;

     WHEREAS, Sublandlord is willing to sublease the Premises to Subtenant on the terms and
conditions hereinafter set forth;

     NOW, THEREFORE, in consideration of the rents to be paid by Subtenant to Sublandlord and the
full and complete performance of all terms, covenants, and conditions herein contained to be
performed by Sublandlord and Subtenant, the parties hereto hereby agree as follows:

I.   SUBLEASE OF PREMISES

     Sublandlord hereby demises and subleases the Premises to Subtenant, and Subtenant hereby hires
and takes the Premises from Sublandlord. This Sublease shall be upon all of the same terms and
conditions of the Lease (and in that regard, all references to “Tenant”, “Landlord”, “Lease” and
“Rent Commencement Date” in the Lease shall be deemed to mean “Subtenant”, “Sublandlord”,
“Sublease” and the “Commencement Date” hereunder, respectively for the purposes of this Sublease
and such terms are incorporated into this Sublease as if fully set forth herein, except that
wherever there is a requirement to pay the costs and expenses of “Landlord,” Subtenant shall only
be obligated to pay Sublandlord’s costs and expenses to the extent they exceed the costs and
expenses incurred by Landlord (i.e. Subtenant shall not be required to pay costs and expense
twice), and in the event of a conflict between the provisions of this Sublease and the Lease, as
between Sublandlord and Subtenant, the provisions of this Sublease shall control).

II. DEFINITIONS

     All of the terms used in this Sublease shall have the same definitions as set forth in the
Lease, except as herein set forth:

     Sublandlord: Cytyc Surgical Products, a California Corporation

 

 

     Subtenant: Concentric Medical, Inc., a Delaware Corporation

     Landlord: SFERS REAL ESTATE CORP. U, a Delaware Corporation

     Target Commencement Date: July 1, 2007

     Term: Commencement Date through Termination Date

	 	 	 	 	 	 	 	 	 	 	 
	Base Rent:	 	Term	 	Sq. Ft.	 	Rent/Monthly
	 
	 	01-12 months	 	 	61,997	 	 	$	61,997.00	 
	 
	 	13-18 months	 	 	61,997	 	 	$	75,016.37	 
	 
	 	19-30 months	 	 	61,997	 	 	$	92,995.50	 
	 
	 	31-42 months	 	 	61,997	 	 	$	94,855.41	 
	 
	 	43-54 months	 	 	61,997	 	 	$	96,715.32	 
	 
	 	55 months - 
Termination Date	 	 	
61,997	 	 	
$	
98,575.23	 

     Termination Date: August 31, 2012

III. TERM

     A. The Term of this Sublease shall commence (the “Commencement Date”) on the later of the
Target Commencement Date, or (unless waived by Subtenant in writing) the date on which Sublandlord
delivers possession of the Premises to Subtenant in the condition required herein, and shall,
subject to the provisions of this Sublease, terminate as of the Termination Date unless sooner
terminated in accordance with the terms of this Sublease. This Sublease shall automatically
terminate in the event of the termination of the Lease. Subtenant shall have no right to extend
the term of this Sublease. If the Commencement Date has not occurred for any reason on or before
July 31, 2007, at Subtenant’s election, the date Subtenant is otherwise obliged to commence payment
of rent shall be delayed by one (1) day after the Commencement Date for each day that the
Commencement Date is delayed beyond such date. If the Commencement Date has not occurred for any
reason on or before September 15, 2007, then in addition to Subtenant’s other rights or remedies,
Subtenant may terminate this Sublease by written notice to Sublandlord, whereupon any monies
previously paid by Subtenant to Sublandlord shall be reimbursed to Subtenant.

     B. The last two sentences of Section 2.1 of the Lease shall have no applicability to this
Sublease.

-2-

 

IV. USE, RESTRICTIONS ON USE AND CONDITION OF THE PREMISES

     A. Subtenant shall occupy the Premises solely for the uses as described in the Lease,
including manufacturing use.

     B. Subtenant shall take the Premises “as-is”, in the condition in which the Premises are in as
of the Commencement Date, without any obligation on the part of Sublandlord to prepare or construct
the Premises for Subtenant’s occupancy. Notwithstanding the foregoing, (a) Sublandlord shall
deliver possession of the Premises to Subtenant on the Target Commencement Date in vacant, broom
clean condition, in the same condition as exists as of the date hereof and (b) Subtenant shall be
given sufficient access at mutually convenient times prior to the Target Commencement Date to
verify that the condition of the Premises is in sufficient working order for Subtenant’s required
use. Subtenant hereby acknowledges that Sublandlord has made no representation or warranty to
Subtenant as to the condition of the Premises, except that Sublandlord has maintained the general
existing condition of the Premises since having entered a Letter of Intent to sublet the premises
with Subtenant on February 20, 2007 (“LOI”).

Hazardous Materials shall be as described in the Lease. In addition, Sublandlord agrees to
indemnify, defend, protect and hold harmless Subtenant from and against all claims, suits,
judgments, losses, costs, personal injuries, liabilities, damages, and expenses of every type and
nature, directly or indirectly arising out of or in connection with any Hazardous Material present
at any time on or about the Premises introduced by the Sublandlord. Subject to Landlord’s consent
thereto, Sublandlord hereby consents to Subtenant’s use of Hazardous Materials as described in
Exhibit C attached hereto. Prior to the Commencement Date, Sublandlord shall perform all
closures of the Premises required by applicable law and provide copies of such closure reports to
Subtenant.

V.  FURNITURE, FIXTURES AND EQUIPMENT

      In consideration of a purchase price of ten dollars ($10.00), which shall be payable by
Subtenant on the Commencement Date, Sublandlord shall sell and convey to Subtenant certain
furniture and equipment located on the Premises as set forth on Exhibit B attached hereto.
In the event that Subtenant defaults beyond any cure period(s) on this Sublease and the Sublease is
terminated as a result thereof, Sublandlord shall have the right, but not the obligation, at such
time to purchase back the furniture and equipment from Subtenant. Subtenant shall have full
responsibility for moving or removing all such furniture and equipment as of the termination
(assuming Sublandlord has not exercised its re-purchase right) or expiration of this Sublease.

VI. PAYMENT OF RENT, TAXES AND EXPENSES

     A. Section 3.1 of the Lease shall have no applicability to the Sublease, and in lieu thereof,
the following shall apply:

-3-

 

“Commencing as of the Commencement Date and continuing thereafter throughout the remainder
of the Term of this Sublease, Subtenant agrees to pay to Sublandlord the monthly Base Rent
in effect at the time. Such Base Rent shall be paid on or before the first day of each full
calendar month during the Term, except the first month’s full rent shall be paid upon
execution of this Sublease. Rent for any period during the Term which is less than a full
month shall be a prorated portion of the monthly amount due, based upon the number of days
in such month. Said rent shall be paid to Sublandlord, without deduction (except as may be
permitted pursuant to the terms of the Lease) or offset and without notice or demand, at the
payment address provided below.”

     B. All rent payable under this Sublease shall, unless Sublandlord otherwise directs Subtenant
in writing, be paid by Subtenant to Sublandlord at the following address:

Cytyc Surgical Products

250 Campus Drive

Marlborough, MA 01752

Attn: Chief Financial Officer

     C. This Sublease is a triple net lease. The Subtenant is responsible for all expenses and
taxes associated with leasing the Premises as provided in the Lease, as incorporated herein.
Notwithstanding the foregoing, Subtenant shall be entitled to all credits, if any, given by
Landlord to Sublandlord for Sublandlord’s overpayment of such amounts as to corresponding amounts
paid by Subtenant.

     D. Subtenant shall have the right to pay all rent and other sums owing by Subtenant to
Sublandlord hereunder for those items which also are owed by Sublandlord to Landlord under the
Lease directly to Landlord if Sublandlord has failed to make any payment required to be made by
Sublandlord to Landlord under the Lease. Subtenant shall provide to Sublandlord concurrently with
any payment to Landlord reasonable evidence of such payment.

VII. SECURITY DEPOSIT

     A. Subtenant shall provide a Security Deposit to Sublandlord in the amount of Five Hundred
Twenty-Two Thousand, One Hundred Sixty-Five Dollars ($522,165), which shall be held in the form of
cash or a letter of credit. In the event that Subtenant completes an initial public offering
during the Term, then Sublandlord agrees to reduce the amount of the Security Deposit promptly to
Two Hundred Sixty-One Thousand, Eighty-Two Hundred Dollars ($261,082).

     B. Except as modified above, the Security Deposit shall in all respects be governed by the
terms specified in the Lease, as incorporated herein.

-4-

 

VIII. SUBTENANT ALTERATIONS; SIGNS

     A. Subtenant shall not make any alteration, installation, removal, addition or improvement to
the Premises, and Subtenant shall have no right to install any signage in the Premises or the
Building except as provided in the Lease, as incorporated herein. Subject to Landlord’s consent
thereto, Sublandlord hereby approves of Subtenant’s construction of improvements as set forth in
Exhibit D attached hereto and of Subtenant’s use of Hollander Smith as its contractor.
Subtenant shall be entitled to surrender such alterations upon the termination of this Sublease.
So long as this Sublease does not terminate early due to Subtenant’s default, Sublandlord shall not
require any alterations made by Subtenant to be restored upon the termination of this Sublease
unless Landlord so requires. Subtenant shall have the right to install its company name and logo
in all of the locations where Sublandlord’s signs are currently located. Sublandlord shall remove
its signs prior to the Commencement Date.

     B. Exhibit B of the Lease shall have no applicability to this Sublease.

IX. INDEMNITY, SUBROGATION, AND LIABILITY INSURANCE

     A. Subtenant’s indemnity, as set forth in Section 10 of the Lease, as incorporated herein,
shall run in favor of the Sublandlord and the Landlord and each of their “Entities”, as such term
is utilized in. Notwithstanding anything to the contrary herein, Sublandlord shall not be released
or indemnified from, and shall indemnify, defend, protect and hold harmless Subtenant from, all
damages, liabilities, losses, claims, attorneys’ fees, costs and expenses to the extent arising
from the negligence or willful misconduct of Sublandlord or its agents, contractors, licensees or
invitees or a breach of Sublandlord’s obligations or representations under this Sublease or the
Lease.

     B. The liability insurance which Subtenant is required to carry pursuant to Section 11 of the
Lease, as incorporated herein, shall insure both Sublandlord and Landlord as additional insured
parties.

     C. Notwithstanding anything in this Sublease to the contrary, Sublandlord and Subtenant hereby
release each other and their respective agents, employees, successors, assignees and sublessees
from all liability for damage to any property that is caused by or results from a risk which is
actually insured against, which is required to be insured against under the Lease or this Sublease,
or which would normally be covered by “all risk” property insurance, without regard to the
negligence or willful misconduct of the person or entity so released; provided, that, the foregoing
shall not release Subtenant from any liability owed to the Landlord.

X. SUBLEASE SUBJECT TO LEASE

     Subtenant acknowledges that, this Sublease is subject and subordinate in all respects to the
Lease (including, without limitation, Landlord’s rights of access to the

-5-

 

     Premises and its right to terminate the Lease in the event of certain takings and casualties).
Therefore:

     A. Subtenant agrees that it will not take any action which would constitute a default under
the Lease, as applicable to this Sublease, and Subtenant agrees to indemnify, defend, and hold
Sublandlord harmless from and against any and all liability, loss, cost, damage or expense,
including reasonable attorneys fees, arising out of or in connection with any act or failure on the
part of Subtenant which constitutes a default under this Sublease or under the Lease.

     B. Wherever Sublandlord’s consent is required under this Sublease, the consent of Landlord
shall also be required. Whenever this Sublease requires an approval, consent, designation,
determination or judgment by either Sublandlord or Subtenant, such approval, consent, designation,
determination or judgment shall not be unreasonably withheld or delayed; provided, however, it is
understood and agreed that Sublandlord shall not be deemed to be unreasonable in withholding its
consent if Landlord has not granted its consent.

Subtenant acknowledges and agrees that Sublandlord shall have no obligation to provide any services
to the Premises, to perform any maintenance of or repairs to the Premises or the Building, or to
perform any similar obligation which is required to be performed by Landlord under the Lease.
Notwithstanding anything in this Sublease to the contrary, to the extent necessary to maintain the
Lease in effect, Sublandlord shall fully perform all of its obligations under the Lease to the
extent Subtenant has not expressly agreed to perform such obligations under this Sublease.
Sublandlord shall not terminate or take any actions giving rise to a termination right under the
Lease, amend or waive any provisions under the Lease or make any elections, exercise any right or
remedy or give any consent or approval under the Lease without, in each instance, Subtenant’s prior
written consent which shall not be unreasonably withheld or delayed. Sublandlord represents that
it has not made any alterations or improvements to the Premises except as described in Exhibit
E attached hereto.

     C. Subtenant acknowledges and agrees that Sublandlord shall have no liability or obligation to
Subtenant based upon any act or omission of Landlord or the agents, employees, or contractors of
Landlord. Without limiting the foregoing, Sublandlord shall have no liability to Subtenant, and
Subtenant’s obligation to pay rent due under this Sublease shall not be reduced or abated, in the
event that Landlord fails to provide any service, to perform any maintenance or repairs, or to
perform any other obligation which Landlord is required to provide or to perform pursuant to the
Lease; provided however, that if Sublandlord’s obligation to pay rent under the Lease is abated,
with respect to the Premises, pursuant to the express provisions of the Lease, in respect of any
period of time, Subtenant’s obligation to pay rent to Sublandlord shall be abated in the same
proportion as Sublandlord’s obligation to pay rent to Landlord in respect of the Premises is abated
in respect of such period of time. Notwithstanding the foregoing, the parties contemplate that
Landlord will, in fact, perform its obligations under the Lease and in the event of any default or
failure of performance by Landlord, Sublandlord agrees

-6-

 

that it will, upon notice from Subtenant, make demand upon Landlord to perform its obligations
under the Lease, and if Subtenant agrees to pay all costs and expenses of Sublandlord (to be shared
by Sublandlord pro rata if Landlord’s default adversely affects Sublandlord), and provides
Sublandlord with security for that payment reasonably satisfactory to Sublandlord, Sublandlord will
take appropriate legal action to enforce the Lease.

     D. Sublandlord represents that: (i) the Lease is in full force and effect; (ii) to the best of
Sublandlord’s knowledge there exists under the Lease no default or event of default by either
Landlord or Sublandlord, nor has there occurred any event which, with the giving of notice or
passage of time or both, could constitute such a default or event of default; (iii) the copy of the
Lease attached hereto as Exhibit A is a true, correct and complete copy of the Lease; and
(iv) the Premises consist of only the interior of the Building and Landlord, rather than
Sublandlord, is responsible for maintaining the roof of the Premises.

XI. NOTICES

     Unless at least five (5) days’ prior written notice is given in the manner set forth in
Section 27 of the Lease, any notices required or permitted to be sent under this Sublease shall be
sent to the following addresses in a method prescribed in Section 27 of the Lease, or such other
addresses as either party may advise the other:

     To Sublandlord:

Cytyc Surgical Products

250 Campus Drive

Marlborough, MA 01752

Attn: Chief Financial Officer

cc: General Counsel

     To Subtenant:

Before the Commencement Date:

Concentric Medical, Inc.

1380 Shorebird Way

Mountain View, CA 94043

Attn: Legal Department

After the Commencement Date:

Concentric Medical, Inc.

The Premises

Attn: Legal Department

-7-

 

XII. BROKER

     Subtenant and Sublandlord acknowledge that Cornish & Carey Commercial has represented the
Subtenant in the transaction memorialized by this Sublease and T3 Advisors has represented the
Sublandlord. Sublandlord shall pay to the procuring broker a fee equal to seven and a half percent
(71/2%) of the total rent due under this Sublease in two installments upon the following conditions:
Half of the fee payable on the approval by the landlord of the final executed Sublease and half
upon commencement of the Sublease.

XIII. ASSIGNMENT AND SUBLETTING

     Subtenant’s right to assign its interest in this Sublease or to further sublease the Premises
shall be governed in accordance with Section 9 of the Lease, as incorporated herein, and shall be
subject to the consent of the Landlord and the Sublandlord which shall be obtained in accordance
with the terms of Section 9.1 of the Lease, as incorporated herein.

XIV. TIME PERIODS

     Recognizing that the relationship between Sublandlord and Subtenant is a sublease and that, in
the event of an action required or failed to be taken by Subtenant hereunder may place Sublandlord
in default of its obligations under the Lease, the parties hereby agree that Subtenant shall have a
shorter period of time to cure its defaults and to exercise its rights under the Sublease than
Sublandlord has under the Lease. Therefore, and without limiting the foregoing, the following time
periods shall be applicable under this Sublease.

	 	1)	 	Monetary Default: Replace the ten (10) day period in Section 18.1.1
with a five (5) business day period.
	 
	 	2)	 	Non-Monetary Default: Replace the thirty (30) day periods in Section
18.1.2 of the Lease with twenty (20) day periods, and replace the ninety (90) day
period in Section 18.1.2 of the Lease with a eight (80) day period.

XV. OTHER INAPPLICABLE LEASE PROVISIONS

     In addition to any sections noted above as being inapplicable to the Sublease, the following
additional provisions of the Lease shall have no applicability to this Sublease:

	 	1)	 	The References Pages except: Building, Project, Premises, Premises Address,
Project Rentable Area, Premises Rentable Area, Use, Tenant’s Proportionate Share,
Parking and Assignment/Subletting Fee
	 
	 	2)	 	References to the Initial Alterations, the Guaranty and Guarantor

-8-

 

	 	3)	 	Sections 2 (the first sentence), 27, 39 and 41.14 (the first sentence)
	 
	 	4)	 	Exhibit C
	 
	 	5)	 	Exhibit D
	 
	 	6)	 	Exhibit E

References in the following provisions of the Lease to “Landlord” shall mean Landlord as defined in
the Lease and not Sublandlord: Sections 1.3, 4.1-4.4, 6.2 (the last sentence), 16, 17.1 (third
sentence only), 22, 23, 42, 43 and 45 (first sentence only).

XVI. CONSENT OF LANDLORD

     The parties hereby acknowledge and agree that this Sublease shall not be effective unless and
until the parties have obtained the written consent of the Landlord in a form reasonably
satisfactory to Subtenant, including Landlord’s consent to Subtenant’s use of the Premises, use of
Hazardous Materials, signage and alterations to the Premises as described in Sections IV(A), IV(C)
and VIII, and a release and waiver of subrogation as provided in Section 12 of the Lease. If
Sublandlord fails to obtain Landlord’s consent within sixty (60) days after execution of this
Sublease by Sublandlord, then Subtenant may terminate this Sublease by giving Sublandlord written
notice thereof, and Sublandlord shall return to Subtenant all money paid by Subtenant to
Sublandlord pursuant this Sublease.

XVII. SURRENDER

     Subject to Section VIII, Subtenant’s obligations with respect to the surrender of the Premises
shall be fulfilled if Subtenant complies with the terms of surrender as provided in the Lease.
Notwithstanding anything to the contrary in the Lease, Subtenant shall not have any obligation to
remove any alterations or improvements existing on the premises as of the Commencement Date.

XVIII. ASSIGNMENT OF RIGHT

     Sublandlord hereby assigns to Subtenant all warranties given and indemnities made by Landlord
to Sublandlord under the Lease which would reduce Subtenant’s obligations hereunder, and shall
cooperate with Subtenant, in such a manner as Subtenant may reasonably request and at Subtenant’s
sole option and expense, to enforce all such warranties and indemnities.

XIX. SUBORDINATION

     Subordination shall be governed in accordance with Section 15 of the Lease. Sublandlord shall
request a recognition agreement from Sumitomo Mitsui Banking Corporation as provided in Section 15
and Exhibit G of the Lease.

-9-

 

	 	 	 	 	 	 	 
	EXECUTED UNDER SEAL as of the date first above-written.	 	 
	 
	 	 	 	 	 	 
	SUBLANDLORD:	 	 
	 
	 	 	 	 	 	 
	CYTYC SURGICAL PRODUCTS	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/
Patrick J. Sullivan
	 	Chairman and CEO     	 	 
	 	 	 	 	 
	 

	 	(Name)

	 	(Title)     	 	 
	 

	 	Hereunto Duly Authorized
	 	 	 	 
	 
	 	 	 	 	 	 
	Date Signed: 4/24/07	 	 
	 
	 	 	 	 	 	 
	SUBTENANT	 	 
	 
	 	 	 	 	 	 
	CONCENTRIC MEDICAL, INC.	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Gary Curtis

	 	President, CEO     	 	 
	 	 	 	 	 
	 

	 	(Name)

	 	(Title)     	 	 
	 

	 	Hereunto Duly Authorized
	 	 	 	 
	 
	 	 	 	 	 	 
	Date Signed: April 19, 2007	 	 

-10-

 

Exhibit A

Lease dated May 24, 2005 by and between SFERS REAL ESTATE CORP. U, as

Landlord and Cytyc Surgical Products, as Tenant

 

 

Exhibit B

Schedule of Purchased Furniture and Equipment

			
	 	 	 
	CSP Sub-Lease Assets
	 	March 8, 2007

	 	 	 	 	 	 	 
	Description of Item/Furn	 	Qty; Floor 1	 	Qty; Floor 2
	Executive Desk/Bookcase/Lateral File/Chairs/Rd Tbl

	 	1 set
	 	5 sets
	Conf. Rm# 100 Conf. Table/Chairs (Tbl 10'Lx4'W Oak)

	 	1tbl/10chrs
	 	N/A
	Conf. Rm# 106 Conf. Table/Chairs (Tbl 8'Lx4'W Gray Formica)

	 	1tbl/10chrs
	 	N/A
	Conf. Rm# 141 Conf. Table/Chairs (Tbl 42" Round walnut)

	 	1tbl/4chrs
	 	N/A
	Conf. Rm# 206 Conf. Table/Chairs (Tbl 10'Lx4'W walnut)

	 	 	N/A	 	 	1tbl/8chrs
	Conf. Rm# 211 Conf. Table/Chairs (table 18'L x 6'W) (Chrs-Blck Leather)

	 	 	N/A	 	 	1tbl/24chrs
	Board Rm# 211 Audio/Visual Equipt(Ceiling proj/elec.screen/equipt.)

	 	 	N/A	 	 	1 lot
	Conf. Rm# 225 Conf. Table/Chairs (Tbl 8'Lx4'W walnut)

	 	 	N/A	 	 	1tbl/8chrs
	Conf. Rm# 230 Conf. Table/Chairs (Tbl 8'Lx42"W mahogany)

	 	 	N/A	 	 	1tbl/4chrs
	Conf. Rm# 235 Conf. Table/Chairs (Tbl 7'Lx4'W walnut)

	 	 	N/A	 	 	1tbl/4chrs
	Conf. Rm# 251 Conf. Table/Chairs (Tbl 10'Lx4'W walnut)

	 	 	N/A	 	 	1tbl/10chrs
	Conf. Rm# 261 Conf. Table/Chairs (Tbl 6'Lx3'W oak)

	 	 	N/A	 	 	1tbl/6chrs
	Training Rm# 271 Gray Folding Tables/Metal Folding Chairs

	 	 	N/A	 	 	10T/90chrs
	Training Rm# 271 Audio/Visual Equipt.(Ceiling proj/elec. screen/equipt.)

	 	 	N/A	 	 	1 lot
	Standard Office Suite Bookcase walnut (high grade)

	 	8ea
	 	18ea
	Standard Office Suite L-Desk walnut (high grade)

	 	8ea
	 	15ea
	Standard Office Suite Lateral File walnut (high grade)

	 	7ea
	 	24ea
	Standard Office Suite Desk Chair (hi/low/fabric/leather)

	 	20ea
	 	30+ea
	Lobby Suite Reception Desk/Credenza/Chairs (high grade)

	 	1 set
	 	1 set
	Lobby Suite Guest Chairs/end tables (high grade)

	 	8chr/4tbl
	 	4 chrs
	Lobby Suite Sofa Seating (modular w/coffee/end table)

	 	 	N/A	 	 	1 set
	Patio Furniture/Umbrella (Aluminum/Stainless Stl)(set=1tbl/6ch/1umb)

	 	 	N/A	 	 	4 sets
	Lunchroom Tables/Chairs (42"rd tbls/plstc.chars)

	 	14tbls/80chrs
	 	4tbl/16chr
	Lunchroom Refrigerators

	 	2 ea
	 	3 ea
	Lunchroom Microwaves/Toaster Ovens/Toasters (all 4 lunch rooms)

	 	4M.3TO.2T
	 	3M/3TO/3T
	Lunchroom Storage 2-door cabinets (metal, 6'T, 3'W)

	 	 	3	 	 	N/A
	Compressor Room 2 Compressors/1 air dryer/1 air tank

	 	1 set
	 	N/A
	Shipping/Rec/Stockroom Shelving

	 	50 units
	 	N/A
	Misc Office Furniture (desks/chairs/bookcases (low-mid grade))

	 	numerous
	 	numerous
	Misc Lab Tables/Chairs (mid-grade)

	 	24tbl/15chr
	 	N/A
	Controlled Environment Room 2 Tier benches (high grade) (lab chairs)

	 	21B/18chrs
	 	N/A
	Cubicles 8' x 8', w/surfaces/overhead cabinets/desk chair

	 	25 sets
	 	50 sets
	Ship/Rec/Stockroom benches/stools etc.

	 	1 lot
	 	N/A

 

 

Exhibit C

Subtenant Hazardous Materials

Concentric Chemical Usage

	 	 	 	 	 	 	 	 	 	 	 
	Material	 	Hazard	 	 	 	 	 	 	 	 
	Classification	 	Class	 	Chemical Name	 	Location	 	Qty	 	Container Type
	FLAM
	 	I-A	 	Acetone	 	Stores	 	0.5 gal	 	Glass bottle
	FLAM
	 	I-C	 	Desmodur	 	Stores	 	50 ml	 	Glass bottle
	FLAM
	 	I-C	 	Hydak G-23	 	Stores	 	2 gal	 	Glass bottle
	FLAM
	 	N/A	 	Acid Flux Neutralizer	 	Stores	 	0.5 gal	 	Plastic bottle
	FLAM
	 	I-A	 	IPA 70% Wipes	 	Stores	 	25 packs	 	Sealed package
	FLAM
	 	I-A	 	IPA 99%	 	Stores	 	3 gal	 	Plastic bottle
	FLAM
	 	I-C	 	EN Solv	 	Stores	 	1 gal	 	non flammable can
	FLAM
	 	I-C	 	PM Acetate	 	Stores	 	0.5 gal	 	Glass bottle
	CORR
	 	Class 3 oxidixer	 	Nitric Acid	 	Stores	 	500 ml	 	Glass bottle
	CORR
	 	Class 4 oxidixer	 	Hydrofluoric Acid	 	Stores	 	500 ml	 	Plastic bottle
	CORR
	 	Class 2 oxidixer	 	Nitional Flux	 	Stores	 	1 Lit	 	Plastic bottle
	FLAM
	 	I-A	 	Acetone	 	Cleanroom	 	0.5 gal	 	Glass bottle
	FLAM
	 	I-C	 	Desmodur	 	Cleanroom	 	50 ml	 	Glass bottle
	FLAM
	 	I-C	 	Hydak G-23	 	Cleanroom	 	.26 gal	 	Glass bottle
	FLAM
	 	N/A	 	Acid Flux Neutralizer	 	Cleanroom	 	0.5 gal	 	Plastic bottle
	FLAM
	 	I-A	 	IPA 70% Wipes	 	Cleanroom	 	10 packs	 	Sealed package
	FLAM
	 	I-A	 	IPA 99%	 	Cleanroom	 	1 gal	 	Plastic bottle
	FLAM
	 	I-C	 	EN Solv	 	Cleanroom	 	1 gal	 	non flammable can
	FLAM
	 	I-C	 	PM Acetate	 	Cleanroom	 	0.5 gal	 	Glass bottle
	CORR
	 	Class 2 oxidixer	 	NiTinol Flux	 	Cleanroom	 	250 ml	 	Plastic bottle
	CORR
	 	Class 3 oxidixer	 	Nitric Acid	 	Cleanroom	 	500 ml	 	Glass bottle
	CORR
	 	Class 4 oxidixer	 	Hydrofluoric Acid	 	Cleanroom	 	500 ml	 	Plastic bottle

 

 

Exhibit D

Subtenant Improvements

 

 

EXHIBIT E

Sublandlord Alterations

     •See Initial Alterations Plan attached hereto.

     •Installation of air conditioner unit to Server Room.

 

 

EXHIBIT E

EXHIBIT B — INITIAL ALTERATIONS

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

 

 

SCHEDULE B-1 – PLANS

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation as Tenant

 

 

			
	C Y T Y C
	 	REC’d
	 
	 	4/25/2007

April 24, 2007

VIA OVERNIGHT FEDERAL EXPRESS

SFERS Real Estate Corp. U

1310 Tully Road

Suite 110

San Jose, CA 95122

Re:    Request for Consent to Sublease Premises at 301 East Evelyn Ave, Mountain View, CA

Dear Sir or Madam:

Pursuant to Section 9.1 of the Lease Agreement between SFERS Real Estate Corp. U (“Landlord”) and
Cytyc Surgical Products (“Tenant”) dated as of May 24, 2005 (the “Lease”), Tenant hereby gives
Landlord notice of its intent to sublet the Premises (as defined in the Lease) to Concentric
Medical Inc., and respectfully requests Landlord’s consent to such subletting. Enclosed herewith
is a fully executed copy of the proposed sublease between Tenant and Concentric Medical, Inc.

Please do not hesitate to contact me with any questions regarding the enclosed.

Best regards,

	 	 	 
	/s/ Anne M. Liddy
 

	 	 
	Anne Liddy
	 	 
	Corporate Counsel
	 	 
	Cytyc Corporation

	 	 

Copies:

without enclosures:

Timothy Adams, Chief Financial Officer, Cytyc Corporation

Susan Reinstra, Esq., Wilson Sonsini Goodrich & Rosati

Roy Hirshland, T3 Advisors

James Morgensen, T3 Advisors

with enclosures:

Janet LaPerle, Senior Property Manager, RREEF

3000 Scott Blvd., Suite 101

Santa Clara, CA 95054

Tim Ridout, Vice President, Finance, Concentric Medical

1380 Shorebird Way

Mountain View, CA 94043

CYTYC CORPORATION

250 CAMPUS DRIVE, MARLBOROUGH, MA 01752

Tel: (508) 263-2900 · Fax: (508) 229-2795 · www.cytyc.com

 

 

Exhibit A

LEASE

SFERS REAL ESTATE CORP. U,

a Delaware corporation,

Landlord,

and

CYTYC SURGICAL PRODUCTS,

a California corporation,

Tenant

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	1.
	 	USE AND RESTRICTIONS ON USE	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	TERM	 	 	2	 
	 
	 	 	 	 	 	 
	3.
	 	RENT	 	 	3	 
	 
	 	 	 	 	 	 
	4.
	 	RENT ADJUSTMENTS	 	 	3	 
	 
	 	 	 	 	 	 
	5.
	 	SECURITY DEPOSIT	 	 	6	 
	 
	 	 	 	 	 	 
	6.
	 	ALTERATIONS	 	 	7	 
	 
	 	 	 	 	 	 
	7.
	 	REPAIR	 	 	8	 
	 
	 	 	 	 	 	 
	8.
	 	LIENS	 	 	9	 
	 
	 	 	 	 	 	 
	9.
	 	ASSIGNMENT AND SUBLETTING	 	 	9	 
	 
	 	 	 	 	 	 
	10.
	 	INDEMNIFICATION	 	 	12	 
	 
	 	 	 	 	 	 
	11.
	 	INSURANCE	 	 	12	 
	 
	 	 	 	 	 	 
	12.
	 	WAIVER OF SUBROGATION	 	 	13	 
	 
	 	 	 	 	 	 
	13.
	 	SERVICES AND UTILITIES	 	 	13	 
	 
	 	 	 	 	 	 
	14.
	 	HOLDING OVER	 	 	13	 
	 
	 	 	 	 	 	 
	15.
	 	SUBORDINATION	 	 	13	 
	 
	 	 	 	 	 	 
	16.
	 	RULES AND REGULATIONS	 	 	14	 
	 
	 	 	 	 	 	 
	17.
	 	REENTRY BY LANDLORD	 	 	14	 
	 
	 	 	 	 	 	 
	18.
	 	DEFAULT	 	 	15	 
	 
	 	 	 	 	 	 
	19.
	 	REMEDIES	 	 	15	 
	 
	 	 	 	 	 	 
	20.
	 	TENANT’S BANKRUPTCY OR INSOLVENCY	 	 	17	 
	 
	 	 	 	 	 	 
	21.
	 	QUIET ENJOYMENT	 	 	18	 
	 
	 	 	 	 	 	 
	22.
	 	CASUALTY	 	 	18	 
	 
	 	 	 	 	 	 
	23.
	 	EMINENT DOMAIN	 	 	19	 
	 
	 	 	 	 	 	 
	24.
	 	SALE BY LANDLORD	 	 	19	 
	 
	 	 	 	 	 	 
	25.
	 	ESTOPPEL CERTIFICATES	 	 	20	 
	 
	 	 	 	 	 	 
	26.
	 	SURRENDER OF PREMISES	 	 	20	 
	 
	 	 	 	 	 	 
	27.
	 	NOTICES	 	 	21	 
	 
	 	 	 	 	 	 
	28.
	 	TAXES PAYABLE BY TENANT	 	 	21	 
	 
	 	 	 	 	 	 
	29.
	 	RELOCATION OF TENANT.  [INTENTIONALLY OMITTED]	 	 	21	 
	 
	 	 	 	 	 	 
	30.
	 	DEFINED TERMS AND HEADINGS	 	 	21	 
	 
	 	 	 	 	 	 
	31.
	 	AUTHORITY	 	 	21	 
	 
	 	 	 	 	 	 
	32.
	 	FINANCIAL STATEMENTS AND CREDIT REPORTS	 	 	21	 
	 
	 	 	 	 	 	 
	33.
	 	COMMISSIONS	 	 	22	 
	 
	 	 	 	 	 	 
	34.
	 	TIME AND APPLICABLE LAW	 	 	22	 
	 
	 	 	 	 	 	 
	35.
	 	SUCCESSORS AND ASSIGNS	 	 	22	 
	 
	 	 	 	 	 	 
	36.
	 	ENTIRE AGREEMENT	 	 	22	 
	 
	 	 	 	 	 	 
	37.
	 	EXAMINATION NOT OPTION	 	 	22	 

-i-

 

TABLE
OF CONTENTS
(continuation)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	38.
	 	RECORDATION	 	 	22	 
	 
	 	 	 	 	 	 
	39.
	 	OPTION TO RENEW	 	 	22	 
	 
	 	 	 	 	 	 
	40.
	 	SIGNAGE	 	 	24	 
	 
	 	 	 	 	 	 
	41.
	 	HAZARDOUS MATERIALS	 	 	24	 
	 
	 	 	 	 	 	 
	42.
	 	ROOF SPACE FOR DISH/ANTENNA	 	 	27	 
	 
	 	 	 	 	 	 
	43.
	 	HVAC UNITS	 	 	29	 
	 
	 	 	 	 	 	 
	44.
	 	CONFIDENTIALITY	 	 	30	 
	 
	 	 	 	 	 	 
	45.
	 	LIMITATION OF LANDLORD’S LIABILITY	 	 	31	 

	 
	EXHIBIT A – FLOOR PLAN DEPICTING THE PREMISES

	 

	EXHIBIT A-1 – SITE PLAN

	 

	EXHIBIT B – INITIAL ALTERATIONS

	 

	EXHIBIT C – COMMENCEMENT DATE MEMORANDUM

	 

	EXHIBIT D – RULES AND REGULATIONS

	 

	EXHIBIT E – FORM OF GUARANTY

	 

	EXHIBIT F – HAZARDOUS MATERIALS QUESTIONNAIRE

	 

	EXHIBIT G – FORM OF SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-ii-

 

MULTI-TENANT INDUSTRIAL NET LEASE

REFERENCE PAGES

	 	 	 
	BUILDING:

	 	301 East Evelyn Avenue

Mountain View, California
	 
	 	 
	PROJECT:

	 	Mountain View Corporate Center
	 
	 	 
	LANDLORD:

	 	SFERS REAL ESTATE CORP. U,

a Delaware corporation
	 
	 	 
	PREMISES:

	 	The entire interior of the Building.
	 
	LANDLORD’S ADDRESS:

	 	 1310 Tully Road, Suite 110
	 

	 	San Jose, California 95122
	 
	 	 
	WIRE INSTRUCTIONS AND/OR ADDRESS FOR RENT PAYMENT:

	 	SFERS Real Estate Corp. U

Dept. #44631

P.O. Box 44000

San Francisco, California 94144
	 
	 	 
	LEASE REFERENCE DATE:

	 	May 24, 2005
	 
	 	 
	TENANT:

	 	CYTYC SURGICAL PRODUCTS, a California

corporation
	 
	 	 
	TENANT’S NOTICE ADDRESS:
	 	 
	 
	 	 
	                    (a) As of beginning of Term:

	 	At the Premises
	 
	 	 
	 

	 	With a courtesy copy to:
	 
	 	 
	 

	 	Cytyc Corporation
 250
Campus Drive

Marlborough, Massachusetts 01752

Attn: General Counsel
	 
	 	 
	                    (b) Prior to beginning of Term (if different):

	 	Cytyc Corporation

1047 Elwell Court

Palo Alto, California 9303

Attn: David Duka
	 
	 	 
	 

	 	With a courtesy copy to:
	 
	 	 
	 

	 	Cytyc Corporation
 250
Campus Drive

Marlborough, Massachusetts 01752

Attn: General Counsel
	 
	 	 
	PREMISES ADDRESS:

	 	 301 East Evelyn Avenue

Mountain View, California 94039
	 
	 	 
	PROJECT RENTABLE AREA:

	 	Approximately 266,088 rentable square feet

-i-

 

	 	 	 
	PREMISES RENTABLE AREA:

	 	Approximately 61,997 rentable square feet (for
outline of Premises see Exhibit A attached hereto)
	 
	 	 
	USE:

	 	General office, research and development,
engineering, laboratory and related ancillary
legal uses.
	 
	 	 
	RENT COMMENCEMENT DATE:

	 	September 1, 2005, subject to extension pursuant
to Section 4 of Exhibit B attached hereto.
	 
	 	 
	COMMENCEMENT DATE:

	 	The date that is two (2) business days after
mutual execution and delivery of the Lease.
	 
	 	 
	TERM OF LEASE:

	 	Approximately eighty-four (84) months, beginning
on the Rent Commencement Date and ending on the
Termination Date. The period from the Rent
Commencement Date to the last day of the same
month is the “Rent Commencement Month.”
	 
	 	 
	TERMINATION DATE:

	 	The last day of the eighty-fourth (84th) full
calendar month after the Rent Commencement Month
(if the Rent Commencement Month is not a full
calendar month), or from and including (if the
Rent Commencement Month is a full calendar month),
the Rent Commencement Month. By way of example,
if the Rent Commencement Date is September 1,
2005, the Termination Date will be August 31,
2012.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-ii-

 

ANNUAL RENT and MONTHLY INSTALLMENT OF

RENT (Article 3):

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Monthly
	Period	 	Rentable Square	 	Annual Rent Per	 	 	 	Installment of
	from	 	through	 	Footage	 	Square Foot	 	Annual Rent	 	Rent
	 
	Rent Commencement
Month
	 	Month 6
	 	30,000*
	 	$11.40
	 	$    342,000.00
	 	$28,500.00
	Month 7
	 	Month 12
	 	45,000*
	 	$11.40
	 	$    513,000.00
	 	$42,750.00
	Month 13
	 	Month 24
	 	61,997
	 	$12.00
	 	$    743,964.00
	 	$61,997.00
	Month 25
	 	Month 36
	 	61,997
	 	$12.60
	 	$    781,162.20
	 	$65,096.85
	Month 37
	 	Month 48
	 	61,997
	 	$13.20
	 	$    818,360.40
	 	$68,196.70
	Month 49
	 	Month 60
	 	61,997
	 	$14.40
	 	$    892,756.80
	 	$74,396.40
	Month 61
	 	Month 72
	 	61,997
	 	$16.20
	 	$ 1,004,351.40
	 	$83,695.95
	Month 73
	 	Month 84
	 	61,997
	 	$16.80
	 	$ 1,041,549.60
	 	$86,795.80

 

			
	*	 	The Premises shall be deemed to be (i) 30,000 rentable square feet during the first six (6) full
calendar months following the Rent Commencement Date (the “Initial Reduced Monthly Installment of
Rent Period”), and (ii) 45,000 rentable square feet for the six (6) full calendar months following
the expiration of the Initial Reduced Monthly Installment of Rent Period (the “Second Reduced
Monthly Installment of Rent Period”), solely for the purpose of calculating the Monthly Installment
of Rent payable by Tenant for the Premises. The Initial Reduced Monthly Installment of Rent Period
the Second Reduced Monthly Installment of Rent Period is collectively referred to herein as the
“Reduced Monthly Installment of Rent Period”. Notwithstanding the foregoing, Tenant shall be in
possession of the entire 61,997 rentable square feet of the Premises during the Reduced Monthly
Installment of Rent Period and shall be responsible for all of its obligations and liabilities with
respect to the entire Premises pursuant to the terms of the Lease during the Reduced Monthly
Installment Rent Period, including without limitation, Tenant’s obligation to pay Tenant’s
Proportionate Share of Expenses and Taxes for the entire Premises during such period.

	 	 	 
	INITIAL ESTIMATED MONTHLY INSTALLMENT
OF RENT ADJUSTMENTS (Article 4):

	 	 $ 23,112.48
	 
	 	 
	TENANT’S PROPORTIONATE SHARE:

	 	 23.30% of the Project 
100%
of the Building
	 
	 	 
	PARKING:

	 	 4 parking spaces per 1,000 rentable
square feet of the Premises for a
total of 248 parking spaces.
	 
	 	 
	SECURITY DEPOSIT:

	 	 $109,908.28
	 
	 	 
	ASSIGNMENT/SUBLETTING FEE

	 	 $ 1,000.00
	 
	 	 
	REAL ESTATE BROKER DUE COMMISSION:

	 	Cornish & Carey Commercial, Inc.
	 
	 	 
	TENANT’S SIC CODE:

	 	 3845

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-iii-

 

	 	 	 
	GUARANTOR:

	 	Concurrently with Tenant’s execution and delivery of
this Lease, Tenant shall cause Cytyc Corporation, a
Delaware corporation (“Guarantor”) to execute and
deliver to Landlord a Guaranty in the form attached
hereto as Exhibit E.

The Reference Pages information is incorporated into and made a part of the Lease. In the event of
any conflict between any Reference Pages information and the Lease, the Lease shall control. This
Lease includes Exhibits A through G, all of which are made a part of this Lease.

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SFERS REAL ESTATE CORP. U,	 	 	 	CYTYC SURGICAL PRODUCTS, a	 	 
	a Delaware corporation	 	 	 	California corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	RREEF Management Company, a	 	 	 	 	 	 	 	 
	 

	 	Delaware corporation	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ James H. Ida
 

	 	 
	 	By:
	 	/s/ Patrick J. Sullivan
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	James H. Ida
	 	 	 	Name:
	 	Patrick J. Sullivan	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Vice President, District Manager
	 	 	 	Title:
	 	President and CEO	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	5/27/05
	 	 	 	Dated:
	 	May 25, 2005	 	 
	 
	 	 	 	 	 	 	 	 	 	 

-iv-

 

LEASE

     By this Lease Landlord leases to Tenant and Tenant leases from Landlord the Premises in the
Building as set forth and described on the Reference Pages. Each floor of the Premises is depicted
on the floor plan attached hereto as Exhibit A, and the Building and the Project are
depicted on the site plan attached hereto as Exhibit A-1. The Reference Pages, including
all terms defined thereon, are incorporated as part of this Lease.

     1. USE AND RESTRICTIONS ON USE.

          1.1 The Premises are to be used solely for the purposes set forth on the Reference Pages.
Tenant shall not do or permit anything to be done in or about the Premises which will in any way
materially obstruct or interfere with the rights of other tenants or occupants of the Project or
injure, annoy, or disturb them, or allow the Premises to be used for any improper, immoral,
unlawful, or objectionable purpose, or commit any waste. Tenant shall not do, permit or suffer in,
on, or about the Premises the sale of any alcoholic liquor without the written consent of Landlord
first obtained. Tenant shall comply with all governmental laws, ordinances and regulations
(collectively, “Laws”) applicable to the use of the Premises and its occupancy and shall promptly
comply with all governmental orders and directions for the correction, prevention and abatement of
any violations in the Building or appurtenant land, caused or permitted by, or resulting from the
specific use by, Tenant, or in or upon, or in connection with, the Premises, all at Tenant’s sole
expense. Tenant shall not do or permit anything to be done on or about the Premises or bring or
keep anything into the Premises which will in any way increase the rate of (unless Tenant pays for
such increase), invalidate or prevent the procuring of any insurance obtained, or sought to be
obtained, by Landlord protecting against loss or damage to the Building or any of its contents by
fire or other casualty or against liability for damage to property or injury to persons in or about
the Building or any part thereof. As of the date hereof, to Landlord’s actual knowledge, Landlord
has not received written notice from any governmental agencies that the Building is in violation of
any Laws. For purposes of this Section, “Landlord’s actual knowledge” shall be deemed to mean and
limited to the current actual knowledge of James Ida, Vice President and District Manager of RREEF
Management Company, a Delaware corporation, at the time of execution of the Lease and not any
implied, imputed, or constructive knowledge of said individual or of Landlord or any parties
related to or comprising Landlord and without any independent investigation or inquiry having been
made or any implied duty to investigate or make any inquiries; it being understood and agreed that
such individual shall have no personal liability in any manner whatsoever hereunder or otherwise
related to the transactions contemplated hereby. Landlord, at its sole cost and expense (except to
the extent properly included in Expenses) shall be responsible for correcting any violations of
Laws with respect to exterior portions of the Building and the exterior common areas of the
Building and the Project; provided that Landlord shall have the right to contest any alleged
violation in good faith, including, without limitation, the right to apply for and obtain a waiver
or deferment of compliance, the right to assert any and all defenses allowed by Laws and the right
to appeal any decisions, judgments or rulings to the fullest extent permitted by Laws. Landlord,
after the exhaustion of any and all rights to appeal or contest, will make all repairs, additions,
alterations or improvements necessary to comply with the terms of any final order or judgment.
Notwithstanding the foregoing, Tenant, not Landlord, shall be responsible for the correction of any
violations that arise out of or in connection with any claims brought under any Laws relating to
the specific nature of Tenant’s business in the Premises, the acts or omissions of Tenant or any of
the Tenant Entities or any of their agents, employees or contractors, Tenant’s arrangement of any
furniture, equipment or other property in the Premises, any repairs, alterations, additions or
improvements performed by or on behalf of Tenant, including without limitation, the Initial
Alterations (as defined in Exhibit B attached
hereto) and any design or configuration of
the Premises specifically requested by Tenant.

          1.2 Hazardous Materials.

               1.2.1 Except as provided in Article 41, Tenant shall not, and shall not direct, suffer or
permit any of its agents, contractors, employees, licensees or invitees (collectively, the “Tenant
Entities”) to at any time use, store, generate, treat, discharge, disperse, handle, manufacture,
transport or dispose of (collectively, “Handle”) in or about the Premises or the Building any
(collectively “Hazardous Materials”) flammables, explosives, radioactive materials, hazardous
wastes or materials, toxic wastes or materials, or other similar substances, petroleum products or
derivatives or any substance subject to regulation by or under any federal, state and local laws
and ordinances relating to the protection of the environment or the keeping, use or disposition of
environmentally hazardous materials, substances, or wastes, presently in effect or hereafter
adopted, all amendments to any of them, and all rules and regulations issued pursuant to any of
such laws or ordinances (collectively “Environmental Laws”), nor shall Tenant suffer or permit any
Hazardous Materials to be used in any manner not fully in compliance with all Environmental Laws,
in the Premises or the Building and appurtenant land or allow the environment to become
contaminated with any Hazardous Materials. Notwithstanding the foregoing, Tenant may Handle (i)
products containing small quantities of Hazardous Materials (such as aerosol cans containing
insecticides, toner for

1

 

copiers, paints, paint remover and the like) to the extent customary and necessary for the use of
the Premises for general office purposes, and (ii) products containing Hazardous Materials to the
extent approved or permitted pursuant to the provisions of Article 41 hereof; provided that Tenant
shall always Handle any such Hazardous Materials in a safe and lawful manner and never allow such
Hazardous Materials to contaminate the Premises, Building and appurtenant land or the environment.
Tenant shall protect, defend, indemnify and hold each and all of the Landlord Entities (as defined
in Article 30) harmless from and against any and all loss, claims, liability or costs (including
court costs and attorney’s fees) incurred by reason of any actual or asserted failure of Tenant to
fully comply with all applicable Environmental Laws, or the presence, handling, use or disposition
in or from the Premises of any Hazardous Materials by Tenant or any Tenant Entity (even though
permissible under all applicable Environmental Laws or the provisions of this Lease), or by reason
of any actual or asserted failure of Tenant to keep, observe, or perform any provision of this
Section 1.2.

               1.2.2 As of the date hereof, Landlord has not received written notice from any governmental
agencies that the Building is in violation of any Environmental Laws. Further, to Landlord’s
actual knowledge, there are no Hazardous Materials at the Building other than small quantities of
Hazardous Materials (such as aerosol cans containing insecticides, toner for copiers, paints, paint
remover and the like) to the extent customary and necessary for the use of the Premises for general
office purposes and the Hazardous Materials described in the Reports (as defined in Section 41.14).
For purposes of this Section, “Landlord’s actual knowledge” shall be deemed to mean and limited to
the current actual knowledge of James Ida, District Manager of RREEF Management Company, a Delaware
corporation, at the time of execution of this Lease and not any implied, imputed, or constructive
knowledge of said individual or of Landlord or any parties related to or comprising Landlord and
without any independent investigation or inquiry having been made or any implied duty to
investigate or make any inquiries; it being understood and agreed that such individual shall have
no personal liability in any manner whatsoever hereunder or otherwise related to the transactions
contemplated hereby.

               1.2.3 Prior to Tenant (and at least ten (10) days prior to any assignee or any subtenant of
Tenant) taking possession of any part of the Premises, Tenant shall disclose to Landlord in writing
the names and amounts of all Hazardous Materials, or any combination thereof, which Tenant intends
to Handle on, under or about the Premises during the Term by executing and delivering to Landlord a
“Hazardous Materials Questionnaire”, in the form attached hereto as Exhibit F (as updated
and modified by Landlord, from time to time). Tenant’s disclosure obligations under this Section
1.2 shall include a requirement that, to the extent any information contained in a Hazardous
Materials Questionnaire previously delivered by Tenant shall become inaccurate in any material
respect, Tenant shall promptly deliver to Landlord a new updated Hazardous Materials Questionnaire.
Landlord shall review and approve or disapprove Tenant’s use of the Hazardous Materials disclosed
in Tenant’s completed Hazardous Materials Questionnaire within a reasonable time period following
Landlord’s receipt thereof.

          1.3 Tenant and the Tenant Entities will be entitled to the non-exclusive use of the common
areas of the Project as they exist from time to time during the Term, including the parking
facilities, subject to Landlord’s rules and regulations regarding such use. However, in no event
will Tenant or the Tenant Entities park more vehicles in the parking facilities than Tenant’s
Proportionate Share of the total parking spaces available for common use. The foregoing shall not
be deemed to provide Tenant with an exclusive right to any parking spaces or any guaranty of the
availability of any particular parking spaces. Tenant acknowledges that the parking facilities may
be closed entirely or in part in order to make repairs or perform maintenance services, or to
alter, modify, re-stripe or renovate the parking facilities, or if required by casualty, strike,
condemnation, act of God, Laws or other reason beyond Landlord’s reasonable control. All parking
spaces provided to Tenant pursuant to this Section shall be provided free of charge for the term of
the Lease.

     2. TERM.

          2.1 The Term of this Lease shall begin on the date (“Commencement Date”) as shown on the
Reference Pages as the “Commencement Date,” and shall terminate on the date (“Termination Date”) as
shown on the Reference Pages as the “Termination Date”, unless sooner terminated by the provisions
of this Lease. Tenant shall, at Landlord’s request, execute and deliver a memorandum agreement
provided by Landlord in the form of Exhibit C attached hereto, setting forth the actual
Commencement Date, Rent Commencement Date, Termination Date and, if necessary, a revised rent
schedule. Should Tenant fail to do so within thirty (30) days after Landlord’s request, the
information set forth in such memorandum provided by Landlord shall be conclusively presumed to be
agreed and correct. Except to the extent caused or exacerbated by Tenant, or any of Tenant’s
related parties, agents, licensees, employees, invitees, customers or contractors, or as a result
of the Initial Alterations (as defined in Exhibit B) or other modifications to the Premises
by or on behalf of Tenant, as of the date Landlord delivers possession of the Premises to Tenant,
the Building roof and the base Building electrical, heating, ventilation and air conditioning,
mechanical and plumbing systems and fire
sprinkler, fire alarm monitoring and smoke detector systems servicing the Premises shall be in
good working condition and order. Tenant shall have sixty (60) days from the
 

2

 

Commencement Date in which to discover and to notify Landlord, in writing, which, if any, of the
above stated base Building systems are not in good working order and satisfactory condition and
repair and Landlord shall at its cost, except to the extent caused by acts and/or omissions of
Tenant or any Tenant Entity, promptly effectuate the repair and correction thereof. In addition,
subject to any delay caused by casualty, strike, condemnation, act of God, Laws or other reason
beyond Landlord’s reasonable control, Landlord shall cause the installation of a new roof for the
Building to be substantially completed on or before August 1, 2005.

     3. RENT.

          3.1 Commencing as of the Rent Commencement Date and continuing thereafter throughout the
remainder of the Term of the Lease, Tenant agrees to pay to Landlord the Annual Rent in effect from
time to time by paying the Monthly Installment of Rent then in effect on or before the first day of
each full calendar month during the Term, except that the first full month’s rent shall be paid
upon the execution of this Lease. The Monthly Installment of Rent in effect at any time shall be
one-twelfth (1/12) of the Annual Rent in effect at such time. Rent for any period during the Term
which is less than a full month shall be a prorated portion of the Monthly Installment of Rent
based upon the number of days in such month. Said rent shall be paid to Landlord, without
deduction (except for any abatement or reduction of Monthly Installment of Rent pursuant to Section
19.9 and Articles 22 and 23) or offset and without notice or demand, at the Rent Payment Address,
as set forth on the Reference Pages, or to such other person or at such other place as Landlord may
from time to time designate in writing. Unless specified in this Lease to the contrary, all
amounts and sums payable by Tenant to Landlord pursuant to this Lease shall be deemed additional
rent.

          3.2 Tenant recognizes that late payment of any rent or other sum due under this Lease will
result in administrative expense to Landlord, the extent of which additional expense is extremely
difficult and economically impractical to ascertain. Tenant therefore agrees that if rent or any
other sum is not paid when due and payable pursuant to this Lease, a late charge shall be imposed
in an amount equal to the greater of: (a) Fifty Dollars ($50.00), or (b) five percent (5%) of the
unpaid rent or other payment; provided, however, that the foregoing late charge shall not apply to
(i) the first such late payment in any twelve (12) month period of the Term of this Lease or any
extension thereto until following written notice to Tenant and the expiration of five (5) days
thereafter without cure or (ii) the second such late payment in any twelve (12) month period of the
Term (as the same may be extended) until the date that is five (5) days following the date that
such unpaid rent or other payment is due. The amount of the late charge to be paid by Tenant shall
be reassessed and added to Tenant’s obligation for each successive month until paid. The
provisions of this Section 3.2 in no way relieve Tenant of the obligation to pay rent or other
payments on or before the date on which they are due, nor do the terms of this Section 3.2 in any
way affect Landlord’s remedies pursuant to Article 19 of this Lease in the event said rent or other
payment is unpaid after date due.

     4. RENT ADJUSTMENTS.

          4.1 For the purpose of this Article 4, the following terms are defined as follows:

               4.1.1 Lease Year: Each fiscal year (as determined by Landlord from time to time) falling
partly or wholly within the Term.

               4.1.2 Expenses: All costs of operation, maintenance, repair, replacement and management of
the
Building and of the Project (including the amount of any credits which Landlord may grant to
particular tenants of the Project in lieu of providing any standard services or paying any standard
costs described in this Section 4.1.2 for similar tenants), as determined in accordance with
generally accepted accounting principles, including the following costs by way of illustration, but
not limitation: (i) water and sewer charges for the Building and for the common areas of the
Project (the “Common Areas”); (ii) insurance charges of or relating to all insurance policies and
endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner
to the protection, preservation, or operation of the Project (inclusive of the Building) or any
part thereof; (iii) utility costs, including, but not limited to, the cost of heat, light, power,
steam, gas for the Project, inclusive of the Building; (iv) waste disposal for the Common Areas;
(v) the cost of security and alarm services (including any central station signaling system) for
the Common Areas; costs of cleaning, repairing, replacing and maintaining the Common Areas,
including parking and landscaping; (vi) window cleaning costs for the Project, inclusive of the
Building; (vi) labor costs for the Project; (viii) costs and expenses of managing the Project
including management and/or administrative fees; (ix) air conditioning maintenance costs for the
Building (subject to the limitations set forth in Section 7.2); (x) elevator maintenance fees and
supplies for the Project, inclusive of the Building; (xi) material costs; (xii) equipment costs
including the cost of maintenance, repair and service agreements and rental and leasing costs;
(xiii) purchase costs of equipment; (xiv) current rental and leasing costs of items which would be
capital items if purchased; tool costs; licenses,

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permits and inspection fees; (xv) wages and salaries; (xvi) employee benefits and payroll taxes;
(xvii) accounting and legal fees; and (xviii) any sales, use or service taxes incurred in
connection therewith. If Landlord incurs Expenses for the Building together with one or more other
buildings within the Project, the shared costs and expenses shall be equitably prorated and
apportioned between the Building and the other buildings within Project (and Tenant Proportionate
Share of such Expenses is 23.3% as of the Commencement Date). In addition, Landlord shall be
entitled to recover, as additional rent (which, along with any other capital expenditures
constituting Expenses, Landlord may either include in Expenses or cause to be billed to Tenant
along with Expenses and Taxes but as a separate item), Tenant’s Proportionate Share of: (i) an
allocable portion of the cost of capital improvement items which are reasonably calculated to
reduce operating expenses; (ii) the cost of fire sprinklers and suppression systems and other life
safety systems; and (iii) other capital expenses which are required under any governmental laws,
regulations or ordinances which were not applicable to the Building or the Project at the time it
was constructed; but the costs described in this sentence shall be amortized over the reasonable
life of such expenditures in accordance with such reasonable life and amortization schedules as
shall be determined by Landlord in accordance with generally accepted accounting principles, with
interest on the unamortized amount at one percent (1%) in excess of the Wall Street Journal prime
lending rate announced from time to time.

     Expenses shall not include depreciation or amortization of the Building or the Project or
equipment in the Building or the Project except as provided herein, loan principal payments, costs
of alterations of tenants’ premises, leasing commissions, interest expenses on long-term
borrowings, advertising costs, any costs to replace, repair or maintain the structural elements of
the Premises (not including the roof membrane), or the cost of complying with any laws in effect
(and as interpreted and enforced) on the Commencement Date except to the extent caused by acts
and/or omissions of Tenant or any Tenant Entity, provided that if any portion of the Building or
the Project that was in compliance with all applicable laws on the Commencement Date becomes out of
compliance due to normal wear and tear, the cost of bringing such portion of the Building or the
Project into compliance shall be included in Expenses unless otherwise excluded pursuant to the
terms hereof.

     The following are also excluded from Expenses:

     (a) interest, principal, points and fees on, and any other costs relating to, any debt
instrument encumbering, or any other financing relating to, all or any portion of the Project, and
depreciation;

     (b) ground lease rental;

     (c) costs for utilities, services and other benefits that are provided selectively to other
tenants or occupants for their benefit and not provided to Tenant;

     (d) costs which are paid or reimbursed to Landlord by warranties or guarantees, insurers or
governmental authorities, Tenant, other tenants or occupants or otherwise;

     (e) costs for leasing space in the Project, including brokers’ and other fees and commissions,
attorneys’ fees, court costs and other legal expenses, space preparation costs, leasing inducements
and concessions, and other costs incurred in connection with leasing of the Project or negotiations
or disputes with past, present, future or prospective tenants or other occupants, or in defense of
Landlord’s interest in or title to the Project;

     (f) damage and repairs caused by or necessitated by the gross negligence or willful misconduct
of Landlord;

     (g) compensation, benefits and other costs of executives and employees above the grade of
district manager;

     (h) interest, penalties or other costs arising out of Landlord’s failure to make timely
payment and performance of its obligations;

     (i) reserves;

     (j) any costs, fines or penalties incurred due to violations by Landlord of any law, order,
rule or regulations of any governmental authority which was in effect (and as enforced) as of the
Commencement Date except where such costs, fines or penalties are incurred by Landlord for
violations of any such law, order, rule or regulation that is ultimately determined to be invalid
or inapplicable;

     (k) cost of correcting existing (as of the date of this Lease) violations of Title III of the
Americans with Disabilities Act;

     (l) Sums paid to subsidiaries or other affiliates of Landlord for services on or to the
Project and/or Premises, but only to the extent that the costs of such services exceed the
competitive cost for such services rendered by persons or entities of similar skill, competence and
experience;

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     (m) All items (including repairs) and services for which Tenant or other tenants pay directly
to third parties or for which Tenant or other tenants reimburse Landlord (other than through
Expenses); and

     (n) any costs or expenses relating to investigation, containment and/or remediation of
Hazardous Materials that Tenant has not expressly agreed to incur herein.

               4.1.3 Taxes: Real estate taxes and any other taxes, charges and assessments which are levied
with respect to the Project (inclusive of the Building) or the land appurtenant to the Project, or
with respect to any improvements, fixtures and equipment or other property of Landlord, real or
personal, located in the Project and used in connection with the operation of the Project and said
land, any payments to any ground lessor in reimbursement of tax payments made by such lessor; and
all reasonable fees, expenses and costs incurred by Landlord in investigating, protesting,
contesting or in any way seeking to reduce or avoid increase in any assessments, levies or the tax
rate pertaining to any Taxes to be paid by Landlord in any Lease Year. Taxes shall be equitably
prorated and apportioned between the Building and the other buildings within Project (and Tenant
Proportionate Share of such Expenses is 23.3% as of the Commencement Date). In addition, Taxes
shall not include any interest or penalties arising from late payment of Taxes by Landlord, except
to the extent due to any action or inaction by Tenant hereunder and if such interest or penalties
are the result of any action or inaction by Tenant, Tenant shall be responsible for either (a) any
interest or penalties improved by the applicable governmental authority, or (b) the late charge
payable by Tenant pursuant to Section 3.2, whichever is greater. Taxes shall not include any
corporate franchise, or gift, capital levy, excise, estate, inheritance or net income tax, or tax
imposed upon any transfer by Landlord of its interest in this Lease or the Building or any taxes to
be paid by Tenant pursuant to Article 28. If an assessment of Taxes is payable in installments,
regardless of whether Landlord pays such amount in one lump sum or elects to pay in installments,
Taxes shall include the amount of the installment and any interest due and payable over the time
period of installments are paid or would have been paid had Landlord elected to pay such Taxes in
installments. Landlord shall, within ten (10) days of Landlord’s receipt of written request from
Tenant, from time to time, provide to Tenant copies of all tax bills on which Tenant’s obligation
to pay Taxes are based.

          4.2 Commencing as of the Rent Commencement Date and continuing thereafter throughout the
remainder of the Term of the Lease, Tenant shall pay as additional rent for each Lease Year
Tenant’s Proportionate Share of Expenses and Taxes incurred for such Lease Year. Notwithstanding
the lower square footages used to calculate Monthly Installment of Rent through the end of the
first Rent Year, Tenant shall have possession of the entire 61,997 rentable square feet of the
Premises from and after the Commencement Date, and Tenant’s Proportionate Share shall be calculated
based on the entire 61,997 rentable square feet of the Premises.

          4.3 Landlord shall, on or before the date one hundred twenty (120) days after the end of each
Lease Year during the Term of this Lease, deliver to Tenant a reasonably detailed annual statement
certifying to Tenant the actual amount of Tenant’s Proportionate Share of Expenses and Taxes
payable by Tenant in respect of such Lease Year. The annual statement of Expenses and Taxes shall
be made by Landlord and shall be binding upon Landlord and Tenant, subject to the provisions of
this Section 4.3. During the Term, Tenant may review, at Tenant’s sole cost and expense, the books
and records supporting such determination in an office of Landlord, or Landlord’s agent, during
normal business hours, upon giving Landlord five (5) days advance written notice within sixty (60)
days after receipt of such determination, but in no event more often than once in any one (1) year
period, subject to execution of a reasonable confidentiality agreement acceptable to Landlord, and
provided that if Tenant utilizes an independent accountant to perform such review it shall be one
of national standing which is reasonably acceptable to Landlord, is not compensated on a
contingency basis and is also subject to such confidentiality agreement. If Tenant fails to object
to Landlord’s determination of Expenses within ninety (90) days after receipt, or if any such
objection fails to state with specificity the reason for the objection, Tenant shall be deemed to
have approved such determination and shall have no further right to object to or contest such
determination. In the event that during all or any portion of any Lease Year or Base Year, the
Project is not fully rented and occupied, Landlord shall make an appropriate adjustment in
occupancy-related Expenses for such year for the purpose of avoiding distortion of the amount of
such Expenses to be attributed to Tenant by reason of variation in total occupancy of the Project,
by employing consistent and sound accounting and management principles to determine Expenses that
would have been paid or incurred by Landlord had the Project been at least ninety-five percent
(95%) rented and occupied, and the amount so determined shall be deemed to have been Expenses for
such Lease Year.

          4.4 Prior to the actual determination thereof for a Lease Year, Landlord may from time to time
(but no more than two (2) times with respect to any Lease Year) reasonably estimate Tenant’s
liability for Expenses and/or Taxes under Section 4.2, Article 6 and Article 28 for the Lease Year
or portion thereof. Landlord will give Tenant written notification of the amount of such estimate
and Tenant agrees that it will pay, by increase of its Monthly Installments of Rent due in such

5

 

Lease Year, additional rent in the amount of such estimate. Any such increased rate of Monthly
Installments of Rent pursuant to this Section 4.4 shall remain in effect until further written
notification to Tenant pursuant hereto.

          4.5 When the above mentioned actual determination of Tenant’s liability for Expenses and/or
Taxes is made for any Lease Year and when Tenant is so notified in writing, then:

               4.5.1 If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of
Expenses and/or Taxes for the Lease Year is less than Tenant’s liability for Expenses and/or Taxes,
then Tenant shall pay such deficiency to Landlord as additional rent in one lump sum within thirty
(30) days of receipt of Landlord’s bill therefor; and

               4.5.2 If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of
Expenses and/or Taxes for the Lease Year is more than Tenant’s liability for Expenses and/or Taxes,
then Landlord shall credit the difference against the then next due payments of Annual Rent and
other charges to be made by Tenant under this Article 4, or, if the Lease has terminated, refund
the difference in cash.

          4.6 If the Rent Commencement Date is other than January 1 or if the Termination Date is other
than December 31, Tenant’s liability for Expenses and Taxes for the Lease Year in which said Date
occurs shall be prorated based upon a three hundred sixty-five (365) day year.

     5. SECURITY DEPOSIT.

          5.1 Tenant shall deposit the Security Deposit with Landlord upon the execution of this Lease.
Said sum shall be held by Landlord as security for the faithful performance by Tenant of all the
terms, covenants and conditions of this Lease to be kept and performed by Tenant and not as an
advance rental deposit or as a measure of Landlord’s damage in case of Tenant’s default. If Tenant
defaults with respect to any provision of this Lease, after the giving of any applicable notice and
the expiration of any applicable grace period, Landlord may use any part of the Security Deposit
for the payment of any rent or any other sum in default, or for the payment of any amount which
Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate
Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default. If
any portion is so used, Tenant shall within ten (10) business days after written demand therefor,
deposit with Landlord an amount sufficient to restore the Security Deposit to its original amount
and Tenant’s failure to do so shall be a material breach of this Lease. Except to such extent, if
any, as shall be required by law, Landlord shall not be required to keep the Security Deposit
separate from its general funds, and Tenant shall not be entitled to interest on such deposit. If
Tenant is not in default at the termination of this Lease, Landlord shall return any unapplied
balance of the Security Deposit to Tenant within forty-five (45) days after Tenant surrenders the
Premises to Landlord in accordance with this Lease. In addition to any other deductions Landlord
is entitled to make pursuant to the terms hereof, Landlord shall have the right to make a
reasonable estimate of any unreconciled Expenses and/or Taxes as of the Termination Date and to
deduct any anticipated shortfall from the Security Deposit. Notwithstanding anything to the
contrary contained herein or in Article 23 hereof, Tenant hereby waives the provisions of Section
1950.7 of the California Civil Code, or any similar or successor Regulations or other laws now or
hereinafter in effect.

          5.2 At Tenant’s option, the Security Deposit may be in the form of an Irrevocable Standby
Letter of Credit (the “letter of credit”), in which event the following terms and conditions shall
apply:

               5.2.1 The letter of credit shall be in favor of Landlord, shall be issued by a bank acceptable
to Landlord with a Standard & Poors rating of “A” or better, shall comply with all of the terms and
conditions of this paragraph and shall otherwise be in form reasonably acceptable to Landlord. The
initial letter of credit shall have an expiration date no earlier than the date that is sixty (60)
days following the Termination Date.

               5.2.2 The letter of credit or any replacement letter of credit shall be irrevocable for the
term thereof and shall automatically renew on a year to year basis until a period ending not
earlier than two months subsequent to the Termination Date (the “LOC Expiration Date”) without any
action whatsoever on the part of Landlord; provided that the issuing bank shall have the right not
to renew the letter of credit by giving written notice to Landlord not less than forty-five (45)
days prior to the expiration of the then current term of the letter of credit that it does not
intend to renew the letter of credit. Tenant understands that the election by the issuing bank not
to renew the letter of credit shall not, in any event, diminish the obligation of Tenant to deposit
the Security Deposit or maintain such an irrevocable letter of credit in favor of Landlord through
the LOC Expiration Date.

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               5.2.3 Landlord, or its then managing agent, shall have the right from time to time to make one
or more draws on the letter of credit at any time that Landlord has the right to use all or a part
of the Security Deposit pursuant to this Article 5, and the proceeds may be applied as permitted
under this Article 5. Funds may be drawn down on the letter of credit upon presentation to the
issuing bank of Landlord’s (or Landlord’s then managing agent’s) certificate stating as follows:

“[Beneficiary] is entitled to the use of Applicant’s Security Deposit
pursuant to that certain Lease dated as of                    , 2006,
between                    ,
as Landlord, and                    , as Tenant, as amended from time to time.”

It is understood that if Landlord or its managing agent be a corporation, partnership or other
entity, then such statement shall be signed by an officer (if a corporation), a general partner (if
a partnership), or any authorized party (if another entity).

               5.2.4 Tenant acknowledges and agrees (and the letter of credit shall so state) that the letter
of credit shall be honored by the issuing bank without inquiry as to the truth of the statements
set forth in such draw request and regardless of whether the Tenant disputes the content of such
statement.

               5.2.5 In the event of a transfer of Landlord’s interest in the Premises, Landlord shall have
the right to transfer the letter of credit to the transferee and Tenant shall take whatever action
reasonably necessary to effectuate such transfer and thereupon the Landlord shall, without any
further agreement between the parties, be released by Tenant from all liability therefor, provided
that, any successor pursuant to a voluntary, third-party transfer (but not as part of an
involuntary transfer resulting from a foreclosure or deed in lieu thereof) shall have assumed
Landlord’s obligations under this Section with respect to the letter of credit either by
contractual obligation, assumption agreement or by operation of law, and it is agreed that the
provisions hereof shall apply to every transfer or assignment of said letter of credit to a new
landlord; Landlord or the new landlord pays all fees to the issuer necessary to evidence such
transfer.

               5.2.6 Without limiting the generality of the foregoing, if the letter of credit expires
earlier than the LOC Expiration Date, or the issuing bank notifies Landlord that it shall not renew
the letter of credit, Landlord shall accept a renewal thereof or substitute letter credit (such
renewal or substitute letter of credit to be in effect not later than thirty (30) days prior to the
expiration thereof), irrevocable and automatically renewable through the LOC Expiration Date upon
the same terms as the expiring letter of credit or upon such other terms as may be reasonably
acceptable to Landlord. However, if (a) the letter of credit is not timely renewed, or (b) a
substitute letter of credit, complying with all of the terms and conditions of this paragraph is
not timely received, Landlord may present such letter of credit to the issuing bank, and the entire
sum so obtained shall be paid to Landlord, to be held by Landlord in accordance with this Article
5. Notwithstanding the foregoing, Landlord shall be entitled to be reimbursed by Tenant for
reasonable attorneys’ fees incurred by Landlord in connection with the review of any proposed
substitute letter of credit pursuant to this paragraph.

     6. ALTERATIONS.

          6.1 Except for those, if any, specifically provided for in Exhibit B to this Lease,
Tenant shall not make or suffer to be made any alterations, additions, or improvements, including,
but not limited to, the attachment of any fixtures or equipment in, on, or to the Premises or any
part thereof or the making of any improvements as required by Article 7, without the prior written
consent of Landlord. However, Landlord’s consent shall not be required for any alterations,
additions, or improvements that satisfies all of the following criteria (a “Cosmetic Alteration”):
(a) is of a cosmetic nature such as painting, wallpapering, hanging pictures and installing
carpeting; (b) is not visible from the exterior of the Premises or Building; (c) will not affect
the base Building systems or structure; and (d) does not require work to be performed inside the
walls or above the ceiling of the Premises. Cosmetic Alterations shall be subject to all the other
provisions of this Article 6. When applying for any required consent, Tenant shall, if requested
by Landlord, furnish complete plans and specifications for such alterations, additions and
improvements. Landlord’s consent shall not be unreasonably withheld with respect to alterations
that are not Cosmetic Alterations and which (i) are not structural in nature, (ii) are not visible
from the exterior of the Building, (iii) do not affect or require modification of the Building’s
electrical, mechanical, plumbing, HVAC or other systems, and (iv) in aggregate do not cost more
than $10.00 per rentable square foot of that portion of the Premises affected by the alterations in
question. Landlord shall respond to any request by Tenant for Landlord’s consent to a proposed
alteration, addition or improvement for which Landlord’s consent is required hereunder, within ten
(10) days following Landlord’s receipt of any plans and specifications and other information or
items required pursuant to this Section with respect to such alteration, addition or improvement.

          6.2 In the event Landlord consents to the making of any such alteration, addition or
improvement by Tenant, the same shall be made by using either Landlord’s contractor or a contractor
reasonably approved by Landlord, in either

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event at Tenant’s sole cost and expense, subject to Tenant’s right to apply the Allowance toward
the cost of the Initial Alterations, as both of such terms are defined in Exhibit B. If
Tenant shall employ any contractor other than Landlord’s contractor and such other contractor or
any subcontractor of such other contractor shall employ any non-union labor or supplier, Tenant
shall be responsible for and hold Landlord harmless from any and all delays, damages and extra
costs suffered by Landlord as a result of any dispute with any labor unions concerning the wage,
hours, terms or conditions of the employment of any such labor. In any event Landlord may charge
Tenant a construction management fee not to exceed five percent (5%) of the cost of such work to
cover its overhead as it relates to such proposed work, plus third-party costs actually incurred by
Landlord in connection with the proposed work and the design thereof, with all such amounts being
due thirty (30) days after Landlord’s demand; provided that no such construction management fee
shall be payable with respect to the Initial Alterations described on Exhibit B hereto.

          6.3 All alterations, additions or improvements proposed by Tenant shall be constructed in
accordance with all government laws, ordinances, rules and regulations, using Building standard
materials where applicable, and Tenant shall, prior to construction, provide the additional
insurance required under Article 11 in such case, and also all such assurances to Landlord as
Landlord shall reasonably require to assure payment of the costs thereof, including but not limited
to, notices of non-responsibility, waivers of lien, but not including surety company performance
bonds and funded construction escrows and to protect Landlord and the Building and appurtenant land
against any loss from any mechanic’s, materialmen’s or other liens arising from such work. Tenant
shall pay in addition to any sums due pursuant to Article 4, any increase in real estate taxes
attributable to any such alteration, addition or improvement for so long, during the Term, as such
increase is ascertainable; at Landlord’s election said sums shall be paid in the same way as sums
due under Article 4.

          6.4 Notwithstanding anything to the contrary contained herein, so long as Tenant’s written
request for consent for a proposed alteration or improvements contains the following statement in
large, bold and capped font “PURSUANT TO SECTION 6 OF THE LEASE, IF LANDLORD CONSENTS TO THE
SUBJECT ALTERATION, LANDLORD SHALL NOTIFY TENANT IN WRITING WHETHER OR NOT LANDLORD WILL REQUIRE
SUCH ALTERATION TO BE REMOVED AT THE EXPIRATION OR EARLIER TERMINATION OF THE LEASE.”, at the time
Landlord gives its consent for any alterations or improvements, if it so does, Tenant shall also be
notified whether or not Landlord will require that such alterations or improvements be removed upon
the expiration or earlier termination of this Lease. Notwithstanding anything to the contrary
contained in this Lease, except as otherwise set forth in Section 26.2, at the expiration or
earlier termination of this Lease and otherwise in accordance with Article 26 hereof, Tenant shall
be required to remove all alterations or improvements made to the Premises except for any such
alterations or improvements which Landlord expressly indicates or is deemed to have indicated shall
not be required to be removed from the Premises by Tenant. If Tenant’s written notice strictly
complies with the foregoing and if Landlord fails to so notify Tenant within ten (10) days after
receipt of such notice whether Tenant shall be required to remove the subject alterations or
improvements at the expiration or earlier termination of this Lease, it shall be assumed that
Landlord shall require the removal of the subject alterations or improvements.

     7. REPAIR.

          7.1 Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint
the Premises, except as specified in Sections 22 and 23 of this Lease and except that Landlord
shall, throughout the Term of the Lease: (i) repair and maintain the structural portions of the
roof, foundation and walls of the Building at Landlord’s cost, except to the extent caused by acts
and/or omissions of Tenant or any Tenant Entity, and (ii) maintain the common areas of the Project
(including, without limitation, the parking areas, sidewalks, other paved areas, and landscaped
areas, and all utility lines serving the Building to the point of connection with the Building),
all in good order, condition, and repair, at Landlord’s cost, subject to reimbursement under
Article 4. In addition, Landlord shall patch and repave the paved areas of the Project, as
necessary; Landlord shall keep the paved areas of the Project lit during night-time hours; and
Landlord shall keep common areas of the Project clean and neat and in good order, condition and
repair (including sweeping and restriping of parking areas, as necessary). By taking possession of
the Premises, Tenant accepts them as being in good order, condition and repair and in the condition
in which Landlord is obligated to deliver them, except as set forth in Section 2.1. It is hereby
understood and agreed that no representations respecting the condition of the Premises or the
Building have been made by Landlord to Tenant, except as specifically set forth in this Lease.
Landlord shall not be liable for any failure to make any repairs or to perform any maintenance
unless such failure shall persist for an unreasonable time after written notice of the need of such
repairs or maintenance is given to Landlord by Tenant.

          7.2 Tenant shall at its own cost and expense keep and maintain all parts of the Premises and
such portion of the Building and improvements as are within the exclusive control of Tenant (other
than those which are to be maintained by Landlord pursuant to Section 7.1) in good condition,
reasonable wear and tear, damage by casualty or taking excepted,

8

 

promptly making all necessary repairs and replacements, whether ordinary or extraordinary, with
materials and workmanship of the same character, kind and quality as the original (including, but
not limited to, repair and replacement of all fixtures installed by Tenant, water heaters serving
the Premises, windows, glass and plate glass, doors, exterior stairs, skylights, any special office
entries, interior walls and finish work, floors and floor coverings, electrical systems and
fixtures, sprinkler systems, dock boards, truck doors, dock bumpers, plumbing work and fixtures,
and performance of regular removal of trash and debris). Tenant as part of its obligations
hereunder shall keep the Premises in a clean and sanitary condition. Tenant will, as far as
possible keep all such parts of the Premises from deterioration due to ordinary wear and from
falling temporarily out of repair, and upon termination of this Lease in any way Tenant will yield
up the Premises to Landlord in good condition and repair, reasonable wear and tear, loss by fire,
other casualty and taking excepted (but not excepting any damage to glass). Subject to Section 12,
Tenant shall, at its own cost and expense, repair any damage to the Premises or the Building
resulting from and/or caused in whole or in part by the negligence or misconduct of Tenant, its
agents, employees, contractors, invitees, or any other person entering upon the Premises as a
result of Tenant’s business activities or caused by Tenant’s default hereunder. Notwithstanding
anything to the contrary contained herein and except to the extent caused by acts and/or omissions
of Tenant or any Tenant Entity (as opposed to the mere use thereof by Tenant in accordance with
this Lease) or as a result of casualty, to the extent Landlord is made aware and Landlord
determines in its reasonable discretion that work to repair, maintain or replace components of any
of the heating, ventilating and air conditioning units solely servicing the Premises (as opposed to
the full replacement thereof) must be made, Landlord shall cause such work to be completed and all
such costs and expenses incurred by Landlord in connection with such repairs, maintenance or
replacement of components shall be payable to Landlord by Tenant within thirty (30) days of
Landlord’s demand, provided that except to the extent caused by the acts and/or omissions of Tenant
or any Tenant Entity (as opposed to the mere use thereof by Tenant in accordance with this Lease),
Tenant shall not be required to pay more than Four Thousand Five Hundred Dollars ($4,500,00) per
Lease Year (the “HVAC Repair Cap”) for such repair, maintenance or replacement of components
(excluding the costs associated with the maintenance/service contract described in Section 7.4
below). Notwithstanding the foregoing and except to the extent caused by the acts or omissions of
Tenant or any Tenant Entity (as opposed to the mere use thereof by Tenant in accordance with this
Lease), to the extent Landlord is made aware and Landlord determines in its sole discretion that
the full replacement (as opposed to repair) of the heating, ventilating and air conditioning unit
exclusively servicing the Premises is necessary or otherwise prudent to perform, Landlord shall
cause such work to be completed and Tenant shall pay the amortized portion of such expenditure in
the manner described for capital expenses as set forth in Section 4.1.2 of this Lease during the
Term and any extension thereof, and such amounts shall not be subject to the HVAC Repair Cap.

          7.3 Except as provided in Article 22, there shall be no abatement of rent and no liability of
Landlord by reason of any injury to or interference with Tenant’s business arising from the making
of any repairs, alterations or improvements in or to any portion of the Building or the Premises or
to fixtures, appurtenances and equipment in the Building. 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 any similar or successor Regulations or other laws now or hereinafter in effect.

          7.4 Landlord shall, on behalf of Tenant, enter into a regularly scheduled preventive
maintenance/service contract with a maintenance contractor for servicing all heating and air
conditioning systems and equipment serving the Premises. All costs and expenses paid by Landlord
in connection therewith shall be payable to Landlord by Tenant within thirty (30) days of
Landlord’s demand.

     8. LIENS. Tenant shall keep the Premises, the Building and appurtenant land and Tenant’s
leasehold interest in the Premises free from any liens arising out of any services, work or
materials performed, furnished, or contracted for by Tenant, or obligations incurred by Tenant. In
the event that Tenant fails, within ten (10) days following written notice from Landlord, to either
cause the same to be released of record or provide Landlord with insurance against the same issued
by a major title insurance company or such other protection against the same as Landlord shall
accept (such failure to constitute an Event of Default), Landlord shall have the right to cause the
same to be released by such means as it shall deem proper, including payment of the claim giving
rise to such lien. All such sums paid by Landlord and all expenses incurred by it in connection
therewith shall be payable to it by Tenant within five (5) days of Landlord’s demand.

     9. ASSIGNMENT AND SUBLETTING.

          9.1 Subject to the terms and provisions of Section 9.8 below, Tenant shall not have the right
to assign or pledge this Lease or to sublet the whole or any part of the Premises whether
voluntarily or by operation of law, or permit the use or occupancy of the Premises by anyone other
than Tenant, and shall not make, suffer or permit such assignment, subleasing or occupancy without
the prior written consent of Landlord, such consent not to be unreasonably withheld, and said
restrictions shall be
binding upon any and all assignees of the Lease and subtenants of the Premises. In the event
Tenant desires to sublet, or permit such occupancy of, the Premises, or any portion thereof, or
assign this Lease, and if, pursuant to the

9

 

provisions of this Section 9.1, Tenant shall give written notice thereof to Landlord at least
thirty (30) days but no more than one hundred eighty (180) days prior to the proposed commencement
date of such subletting or assignment, which notice shall set forth the name of the proposed
subtenant or assignee, the relevant terms of any sublease or assignment and copies of financial
reports and other relevant financial information of the proposed subtenant or assignee.

          9.2 Notwithstanding any assignment or subletting, permitted or otherwise, Tenant shall at all
times remain directly, primarily and fully responsible and liable for the payment of the rent
specified in this Lease and for compliance with all of its other obligations under the terms,
provisions and covenants of this Lease. Notwithstanding any assignment or subletting, permitted or
otherwise, so long as the Guaranty (as defined in the Reference Pages) shall be in full force and
effect, Guarantor (as defined in the Reference Pages) shall remain directly, primarily and fully
responsible and liable for its obligations under the Guaranty. Upon the occurrence of an Event of
Default, if the Premises or any part of them are then assigned or sublet, Landlord, in addition to
any other remedies provided in this Lease or provided by law, may, at its option, collect directly
from such assignee or subtenant all rents due and becoming due to Tenant under such assignment or
sublease and apply such rent against any sums due to Landlord from Tenant under this Lease, and no
such collection shall be construed to constitute a novation or release of Tenant from the further
performance of Tenant’s obligations under this Lease.

          9.3 In addition to Landlord’s right to approve of any subtenant or assignee, Landlord shall
have the option, in its sole discretion, in the event of any proposed subletting of fifty percent
(50%) or more of the square footage of the Premises or assignment other than one qualifying under
Section 9.8 below, to terminate this Lease, or in the case of a proposed subletting of less than
the entire Premises, to recapture the portion of the Premises to be sublet, as of the date the
subletting or assignment is to be effective. The option shall be exercised, if at all, by Landlord
giving Tenant written notice given by Landlord to Tenant within thirty (30) days following
Landlord’s receipt of Tenant’s written notice as required above. However, if Tenant notifies
Landlord, within five (5) days after receipt of Landlord’s termination notice, that Tenant is
rescinding its proposed assignment or sublease, the termination notice shall be void and the Lease
shall continue in full force and effect. Notwithstanding the above, if Landlord would be entitled
to terminate this Lease with respect to all or any portion of the Premises in connection with a
proposed assignment or sublet, Tenant, prior to entering into a sublet or assignment, shall have
the right to advise Landlord (the “Prior Notice”) of its intention to sublet the Premises or assign
this Lease. In the Prior Notice, Tenant shall describe whether Tenant intends to assign its
interest under the Lease or whether Tenant intends to sublease all or a portion of the Premises
(and the portion of the Premises Tenant intends to sublease), and the expected effective date of
the proposed assignment or sublease. Landlord, by providing notice within forty-five (45) days
after receipt of the Prior Notice, shall have the right to terminate this Lease, effective as of
the effective date set forth in the Prior Notice, with respect to the Premises, if Tenant intends
to assign its interest under the Lease, or with respect to the space that Tenant intends to sublet
if Tenant intends to sublease all or a portion of the Premises. If Landlord fails to exercise its
right to terminate within forty-five (45) days after the Prior Notice, and if Tenant, within six
(6) months after the expiration of the 45-day period, enters into the type of assignment or
sublease described in its Prior Notice with respect to the portion of the Premises described in the
Prior Notice, then Landlord shall not have the right to cancel and terminate this Lease with
respect to such portion of the Premises in connection with such Transfer. If this Lease shall be
terminated with respect to the entire Premises pursuant to this Section, the Term of this Lease
shall end on the date stated in Tenant’s notice as the effective date of the sublease or assignment
as if that date had been originally fixed in this Lease for the expiration of the Term. If
Landlord recaptures under this Section only a portion of the Premises, the rent to be paid from
time to time during the unexpired Term shall abate proportionately based on the proportion by which
the approximate square footage of the remaining portion of the Premises shall be less than that of
the Premises as of the date immediately prior to such recapture. Tenant shall, at Tenant’s own
cost and expense, discharge in full any outstanding commission obligation which may be due and
owing as a result of any proposed assignment or subletting, whether or not the Premises are
recaptured pursuant to this Section 9.3 and rented by Landlord to the proposed tenant or any other
tenant. Without limiting the foregoing, no assignment or subletting by Tenant, permitted or
otherwise, shall relieve Guarantor of any liability under the Guaranty.

          9.4 In the event that Tenant sublets, assigns or transfers this Lease other than in connection
with a Permitted Transfer pursuant to Section 9.8, Tenant shall pay to Landlord as additional rent
an amount equal to fifty percent (50%) of any Increased Rent (as defined below), less the Costs
Component (as defined below), when and as such Increased Rent is received by Tenant. As used in
this Section, “Increased Rent” shall mean the excess of (i) all rent and other consideration which
Tenant is entitled to receive by reason of any sublease, assignment or other transfer of this
Lease, over (ii) the rent otherwise payable by Tenant under this Lease at such time in connection
with the portion of the Premises affected by such sublease, assignment or transfer. For purposes
of the foregoing, any consideration received by Tenant in form other than cash shall be valued at
its fair market value, as reasonably determined by Landlord. The “Costs Component” is that amount
which, if paid monthly, would fully amortize on a straight-line basis, over the entire period for
which Tenant is to receive Increased Rent, the reasonable costs incurred by Tenant for leasing
commissions and tenant improvements in connection with such sublease, assignment or other transfer.

10

 

          9.5 Notwithstanding any other provision hereof, it shall be considered reasonable for Landlord
to withhold its consent to any assignment of this Lease or sublease of any portion of the Premises
if at the time of either Tenant’s notice of the proposed assignment or sublease or the proposed
commencement date thereof, there shall exist any incurred default of Tenant for which written
notice has been given to Tenant and any applicable grace period has lapsed, or if the proposed
assignee or sublessee is an entity: (a) with which Landlord is already in negotiation; (b) is
already an occupant of the Project (except as provided below); (c) is a governmental agency; (d) is
incompatible with the character of occupancy of the Project; (e) with which the payment for the
sublease or assignment is determined in whole or in part based upon its net income or profits; or
(f) would subject the Premises to a use which would: (i) involve increased personnel or wear upon
the Building, as reasonably determined by Landlord; (ii) violate any exclusive right granted to
another tenant of the Project (and Landlord shall use commercially reasonable efforts to provide
Tenant with notice of any such exclusive rights); (iii) require any addition to or modification of
the Premises or the Building in order to comply with building code or other governmental
requirements (unless such additions or modifications are of the nature described in the second to
last sentence of Section 6.1 and Tenant performs such additions or modifications at its sole cost
and expense in accordance with the terms of Article 6); or, (iv) involve a violation of Section
1.2. Notwithstanding the above, Landlord will not withhold its consent solely because the proposed
subtenant or assignee is an occupant of the Project if (A) Landlord does not have space available
for lease in the Project that is comparable to the space Tenant desires to sublet or assign or (B)
either Landlord notifies Tenant in writing, or the proposed subtenant or assignee, after
negotiating in good faith with Landlord for at least sixty (60) days, notifies Landlord in writing,
that Landlord and such proposed subtenant or assignee are unable to enter into an agreement for
space in the Project and Tenant, within six (6) months following such notice, enters into an
assignment or sublease of the space Tenant desires to sublet with such occupant of the Project.
Landlord shall be deemed to have comparable space if it has, or will have, space available in the
Project that is approximately the same size as the space Tenant desires to sublet or assign within
six (6) months of the proposed commencement of the proposed sublease or assignment. Tenant
expressly agrees that for the purposes of any statutory or other requirement of reasonableness on
the part of Landlord, Landlord’s refusal to consent to any assignment or sublease for any of the
reasons described in this Section 9.5, shall be conclusively deemed to be reasonable.

          9.6 Upon any request to assign or sublet which requires the consent of Landlord, Tenant will
pay to Landlord the Assignment/Subletting Fee plus, on demand, a sum equal to all of Landlord’s
costs, including reasonable attorney’s fees, incurred in investigating and considering any proposed
or purported assignment or pledge of this Lease or sublease of any of the Premises, regardless of
whether Landlord shall consent to, refuse consent, or determine that Landlord’s consent is not
required for, such assignment, pledge or sublease. Any purported sale, assignment, mortgage,
transfer of this Lease or subletting which does not comply with the provisions of this Article 9
shall be void.

          9.7 Subject to the terms and provisions of Section 9.8 below, if Tenant is a corporation,
limited liability company, partnership or trust, any transfer or transfers of or change or changes
within any twelve (12) month period in the number of the outstanding voting shares of the
corporation or limited liability company, the general partnership interests in the partnership or
the identity of the persons or entities controlling the activities of such partnership or trust
resulting in the persons or entities owning or controlling a majority of such shares, partnership
interests or activities of such partnership or trust at the beginning of such period no longer
having such ownership or control shall be regarded as equivalent to an assignment of this Lease to
the persons or entities acquiring such ownership or control and shall be subject to all the
provisions of this Article 9 to the same extent and for all intents and purposes as though such an
assignment. Notwithstanding anything to the contrary contained in this Lease, the transfer of
outstanding capital stock or other listed equity interests, or the purchase of outstanding capital
stock or other listed equity interests, or the purchase of equity interests issued in an initial
public offering of stock, by persons or parties other than “insiders” within the meaning of the
Securities Exchange Act of 1934, as amended, through the “over-the-counter” market or any
recognized national or international securities exchange shall not be included in determining
whether control has been transferred.

          9.8 So long as Tenant is not entering into the Permitted Transfer (as defined below) for the
purpose of avoiding or otherwise circumventing the remaining terms of this Article 9, Tenant may
assign its entire interest under this Lease, without the consent of Landlord, to (a) an affiliate,
subsidiary, or parent of Tenant, or a corporation, partnership or other legal entity wholly owned
by Tenant (collectively, an “Affiliated Party”), or (b) a successor to Tenant by purchase of a
controlling interest, merger, consolidation or reorganization, provided that all of the following
conditions are satisfied (each such transfer a “Permitted Transfer” and any such assignee or
sublessee of a Permitted Transfer, a “Permitted Transferee”): (i) Tenant is not in default under
this Lease beyond any applicable cure period; (ii) the Permitted Use does not allow the Premises to
be used for retail purposes; (iii) Tenant shall give Landlord written notice at least thirty (30)
days prior to the effective date of the proposed Permitted Transfer (provided that, if prohibited
by confidentiality in connection with a proposed purchase, merger, consolidation or reorganization,
then Tenant shall give Landlord written notice within ten (10) days after the effective date of the
proposed purchase, merger, consolidation or reorganization); (iv) with respect to a proposed
Permitted

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Transfer to an Affiliated Party, Tenant continues to have a net worth of not less than
$75,000,000.00; and (v) with respect to a purchase, merger, consolidation or reorganization or any
Permitted Transfer which results in Tenant ceasing to exist as a separate legal entity, (A)
Tenant’s successor shall own all or substantially all of the assets of Tenant, and (B) Tenant’s
successor shall have a net worth of not less than $75,000,000.00 as of the day prior to the
proposed purchase, merger, consolidation or reorganization. Tenant’s notice to Landlord shall
include information and documentation showing that each of the above conditions has been satisfied.
If requested by Landlord, Tenant’s successor shall sign a commercially reasonable form of
assumption agreement, unless the assumption of Tenant’s obligations by Tenant’s successor is
effected as a matter of law to the reasonable satisfaction of Landlord. As used herein, (1)
“parent” shall mean a company which owns a majority of Tenant’s voting equity; (2) “subsidiary”
shall mean an entity wholly owned by Tenant or at least fifty-one percent (51%) of whose voting
equity is owned by Tenant; and (3) “affiliate” shall mean an entity controlled, controlling or
under common control with Tenant.

     10. INDEMNIFICATION. None of the Landlord Entities shall be liable and Tenant hereby waives
all claims against them for any damage to any property or any injury to any person in or about the
Premises or the Building by or from any cause whatsoever (including without limiting the foregoing,
rain or water leakage of any character from the roof, windows, walls, basement, pipes, plumbing
works or appliances, the Building not being in good condition or repair, gas, fire, oil,
electricity or theft), except to the extent caused by or arising from the active negligence or
willful misconduct of Landlord or its agents, employees or contractors. Tenant shall protect,
indemnify and hold the Landlord Entities harmless from and against any and all loss, claims,
liability or costs (including court costs and attorney’s fees) incurred by reason of (a) any damage
to any property (including but not limited to property of any Landlord Entity) or any injury
(including but not limited to death) to any person occurring in, on or about the Premises or the
Building to the extent that such injury or damage shall be caused by or arise from any actual or
alleged act, neglect, fault, or omission by or of Tenant or any Tenant Entity to meet any standards
imposed by any duty with respect to the injury or damage; (b) the conduct or management of any work
or thing whatsoever done by the Tenant in or about the Premises or from transactions of the Tenant
concerning the Premises; (c) Tenant’s failure to comply with any and all governmental laws,
ordinances and regulations applicable to the condition or use of the Premises or its occupancy; or
(d) any breach or default on the part of Tenant in the performance of any covenant or agreement on
the part of the Tenant to be performed pursuant to this Lease. Landlord shall protect, indemnify
and hold Tenant harmless from and against any and all loss, claims, liability or costs (including
court costs and attorney’s fees) incurred by reason of any damage to any property (including but
not limited to property of Tenant) or any injury (including but not limited to death) to any person
occurring in, on or about the common areas of the Building to the extent that such injury or damage
shall be caused by or arise from the gross negligence or willful misconduct of Landlord or any of
Landlord’s agents or employees. The provisions of this Article shall survive the termination of
this Lease with respect to any claims or liability accruing prior to such termination.

     11. INSURANCE.

          11.1 Tenant shall keep in force throughout the Term, (a) a Commercial General Liability
insurance policy or policies to protect the Landlord Entities against any liability to the public
or to any invitee of Tenant or a Landlord Entity incidental to the use of or resulting from any
accident occurring in or upon the Premises with a limit of not less than $1,000,000 per occurrence
and not less than $2,000,000 in the annual aggregate, or such larger amount as Landlord may
reasonably require from time to time (provided that Landlord shall not exercise its right to
increase such coverage amounts more often than once during any consecutive three (3) year period of
the Term), covering bodily injury and property damage liability and $1,000,000 products/completed
operations aggregate; (b) Business Auto Liability covering owned, non-owned and hired vehicles with
a limit of not less than $1,000,000 per accident; (c) insurance protecting against liability under
Worker’s Compensation Laws with limits at least as required by statute with Employers Liability
with limits of $500,000 each accident, $500,000 disease policy limit, $500,000 disease-each
employee; (d) All Risk or Special Form coverage protecting Tenant against loss of or damage to
Tenant’s alterations, additions, improvements, carpeting, floor coverings, panelings, decorations,
fixtures, inventory and other business personal property situated in or about the Premises to the
full replacement value of the property so insured; and, (e) Business Interruption Insurance with
limit of liability representing loss of at least approximately six (6) months of income.

          11.2 The aforesaid policies shall (a) be provided at Tenant’s expense; (b) name the Landlord
Entities as additional insureds (General Liability) and loss payee (Property—Special Form); (c) be
issued by an insurance company with a minimum Best’s rating of “A:VII” during the Term; and (d)
provide that said insurance shall not be canceled unless thirty (30) days prior written notice (ten
days for non-payment of premium) shall have been given to Landlord; a certificate of Liability
insurance on ACORD Form 25 and a certificate of Property insurance on ACORD Form 27 shall be
delivered to Landlord by Tenant upon the Commencement Date and at least ten (10) days prior to each
renewal of said insurance.

12

 

          11.3 Whenever Tenant shall undertake any alterations, additions or improvements in, to or
about the Premises (“Work”) the aforesaid insurance protection must extend to and include injuries
to persons and damage to property arising in connection with such Work, without limitation
including liability under any applicable structural work act, and such other insurance as Landlord
shall require; and the policies of or certificates evidencing such insurance must be delivered to
Landlord prior to the commencement of any such Work.

          11.4 Landlord shall keep in force throughout the Term (i) Commercial General Liability
Insurance for the common areas of the Building with a limit of not less than $1,000,000 per
occurrence and not less than $2,000,000 in the annual aggregate, and (ii) All Risk or Special Form
coverage insuring Landlord and the Building at 100% of replacement cost, and with such deductibles
as Landlord determines from time to time in accordance with sound and reasonable risk management
principles. The carrying of the insurance described herein shall in no way be interpreted as
relieving Tenant of any responsibility or liability under this Lease. The cost of all such
insurance is included in Expenses.

     12. WAIVER OF SUBROGATION. So long as their respective insurers so permit, Tenant and
Landlord hereby mutually waive their respective rights of recovery against each other for any loss
insured by fire, extended coverage, All Risks or other insurance now or hereafter existing for the
benefit of the respective party but only to the extent of the net insurance proceeds payable under
such policies. Each party shall obtain any special endorsements required by their insurer to
evidence compliance with the aforementioned waiver.

     13. SERVICES AND UTILITIES. Tenant shall pay for all water, gas, heat, light, power,
telephone, sewer, sprinkler system charges and other utilities and services used on or from the
Premises, together with any taxes, penalties, and surcharges or the like pertaining thereto and any
maintenance charges for utilities. Tenant shall furnish all electric light bulbs, tubes and
ballasts, battery packs for emergency lighting and fire extinguishers. If Tenant fails to pay any
such charges prior to the time that the same are due without penalty to the utility company, and if
Tenant fails to cure such failure within ten (10) days after Tenant receives written notice from
Landlord that it intends to exercise its rights under this Section 13, any such charges paid by
Landlord and assessed against Tenant shall be immediately payable to Landlord on demand and shall
be additional rent hereunder. Any such charges paid by Landlord and assessed against Tenant shall
be payable to Landlord within thirty (30) days of Landlord’s demand therefor and shall be
additional rent hereunder. Tenant will not, without the written consent of Landlord, contract with
a utility provider to service the Premises with any utility, including, but not limited to,
telecommunications, electricity, water, sewer or gas, which is not previously providing such
service to other tenants in the Building; provided that Landlord shall not unreasonably withhold
its consent to a telecommunications provider if the telecommunication services affect only the
Premises, any agreement between Tenant and such telecommunications provider is terminable at will
(and which agreement Tenant hereby agrees to terminate if reasonably requested by Landlord).
Landlord shall have no obligations to such telecommunications provider or any other party either in
connection with Tenant’s agreement with such telecommunications provider or otherwise. Landlord
shall in no event be liable for any interruption or failure of utility services on or to the
Premises.

     14. HOLDING OVER. Tenant shall pay Landlord for each day Tenant retains possession of the
Premises or part of them after termination of this Lease by lapse of time or otherwise at the rate
(“Holdover Rate”) which shall be One Hundred Fifty Percent (150%) of the amount of the Annual Rent
for the last period prior to the date of such termination plus all Rent Adjustments under Article
4, prorated on a daily basis. In addition to the payment of the amounts provided above, if Tenant
fails to vacate the Premises within fifteen (15) days after Landlord notifies Tenant that Landlord
has entered into a lease for the Premises or has received a bona fide offer to lease the Premises,
and that Landlord will be unable to deliver possession, or perform improvements, due to Tenant’s
holdover, then Tenant shall be liable to Landlord for all damages that Landlord suffers from the
holdover. If Landlord gives notice to Tenant of Landlord’s election to such effect, such holding
over shall constitute renewal of this Lease for a period from month to month at the Holdover Rate,
but if the Landlord does not so elect, no such renewal shall result notwithstanding acceptance by
Landlord of any sums due hereunder after such termination; and instead, a tenancy at sufferance at
the Holdover Rate shall be deemed to have been created. In any event, no provision of this Article
14 shall be deemed to waive Landlord’s right of reentry or any other right under this Lease or at
law.

     15. SUBORDINATION. Without the necessity of any additional document being executed by Tenant
for the purpose of effecting a subordination, this Lease shall be subject and subordinate at all
times to ground or underlying leases and to the lien of any mortgages or deeds of trust now or
hereafter placed on, against or affecting the Building, Landlord’s interest or estate in the
Building, or any ground or underlying lease; provided, however, that if the lessor, mortgagee,
trustee, or holder of any such mortgage or deed of trust elects to have Tenant’s interest in this
Lease be superior to any such instrument, then, by notice to Tenant, this Lease shall be deemed
superior, whether this
Lease was executed before or after said instrument. Notwithstanding the foregoing, Tenant
covenants and agrees to execute and deliver within ten (10) days of Landlord’s request such further
instruments evidencing such subordination or superiority of this Lease as may be required by
Landlord.

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As of the date hereof, a lien encumbers Landlord’s interest in the Building in favor of
Sumitomo Mitsui Banking Corporation. At Tenant’s cost, Landlord shall provide Tenant with a
non-disturbance, subordination, and attornment agreement in favor of Tenant in the form attached
hereto as Exhibit G (the “SNDA”) within sixty (60) days following Tenant’s execution and
delivery thereof to Landlord. Upon written request by Tenant, Landlord will use reasonable efforts
to obtain at Tenant’s cost a non-disturbance, subordination and attornment agreement from a
subsequent mortgagee on a commercially reasonable form of agreement. “Reasonable efforts” of
Landlord shall not require Landlord to incur any cost, expense or liability to obtain such
agreement, it being agreed that Tenant shall be responsible for any fee or review costs charged by
such mortgagee, Landlord’s failure to obtain a non-disturbance, subordination and attainment
agreement for Tenant shall have no effect on the rights, obligations and liabilities of Landlord
and Tenant or be considered to be a default by Landlord hereunder,

     16. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with all the rules and
regulations as set forth in Exhibit D to this Lease and all reasonable and
non-discriminatory modifications of and additions to them from time to time put into effect by
Landlord. The rules and regulations shall be generally applicable, and generally applied in a
non-discriminatory manner to all tenants of the Project; however, Landlord shall not be responsible
to Tenant for the non-performance by any other tenant or occupant of the Project of any such rules
and regulations. In the event of conflict between the provisions of the Lease and the provisions
of any rule or regulation, the provisions of the Lease shall control.

     17. REENTRY BY LANDLORD.

          17.1 Landlord reserves and shall at all times have the right to re-enter the Premises to
inspect the same, to show said Premises to prospective purchasers, mortgagees or (within the last
nine (9) months of the Term of the Lease) tenants, and to alter, improve or repair the Premises and
any portion of the Building, without abatement of rent, and may for that purpose erect, use and
maintain scaffolding, pipes, conduits and other necessary structures and open any wall, ceiling or
floor in and through the Building and Premises where reasonably required by the character of the
work to be performed, provided entrance to the Premises shall not be blocked thereby, and further
provided that the business of Tenant shall not be interfered with unreasonably. Notwithstanding
the foregoing, except (i) to the extent entry is requested by Tenant, (ii) in connection with
scheduled maintenance programs, and/or (iii) in the event of an emergency, Landlord shall provide
to Tenant reasonable prior notice (either written or oral) before Landlord enters the Premises to
perform any repairs therein and Tenant shall be entitled to have an employee of Tenant accompany
the person(s) entering the Premises, provided Tenant makes such employee available at the time
Landlord or such other party desires to enter the Premises. Landlord shall have the right at any
time to change the arrangement and/or locations of entrances or other public parts of the Project
and to change the name, number or designation by which the Building and/or the Project is commonly
known. In the event that Landlord damages any portion of any wall or wall covering, ceiling, or
floor or floor covering within the Premises, Landlord shall repair or replace the damaged portion
to match the original as nearly as commercially reasonable but shall not be required to repair or
replace more than the portion actually damaged. Tenant hereby waives any claim for damages for any
injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet
enjoyment of the Premises, and any other loss occasioned by any action of Landlord authorized by
this Article 17. Notwithstanding the foregoing, except in emergency situations, as determined by
Landlord, Landlord shall exercise reasonable efforts to perform any entry into the Premises in a
manner that is reasonably designed to minimize interference with the operation of Tenant’s business
in the Premises.

          17.2 For each of the aforesaid purposes, Landlord shall at all times have and retain a key
with which to unlock all of the doors in the Premises, excluding Tenant’s vaults and safes or
special security areas (designated in advance), and Landlord shall have the right to use any and
all means which Landlord may deem proper to open said doors in an emergency to obtain entry to any
portion of the Premises. As to any portion to which access cannot be had by means of a key or keys
in Landlord’s possession, Landlord is authorized to gain access by such means as Landlord shall
elect and the cost of repairing any damage occurring in doing so shall be borne by Tenant and paid
to Landlord within thirty (30) days of Landlord’s demand.

          17.3 Notwithstanding anything to the contrary set forth herein, the foregoing, Tenant, at its
own expense, may provide its own locks to an area within the Premises (“Secured Area”). Tenant
need not furnish Landlord with a key, but upon the Termination Date or earlier expiration or
termination of Tenant’s right to possession, Tenant shall surrender all such keys to Landlord. If
Landlord must gain access to a Secured Area in a non-emergency situation, Landlord shall contact
Tenant, and Landlord and Tenant shall arrange a mutually agreed upon time for Landlord to have such
access, Landlord shall comply with all reasonable security measures pertaining to the Secured Area.
If Landlord determines in its sole discretion that an emergency in the Building or the Premises,
including, without limitation, a suspected fire or flood, requires Landlord to gain access to the
Secured Area, Tenant hereby authorizes Landlord to forcibly enter the Secured Area. In such event,

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Landlord shall have no liability whatsoever to Tenant, and Tenant shall pay all reasonable expenses
incurred by Landlord in repairing or reconstructing any entrance, corridor, door or other portions
of the Premises damaged as a result of a forcible entry by Landlord.

     18. DEFAULT.

          18.1 Except as otherwise provided in Article 20, the following events shall be deemed to be
Events of Default under this Lease:

               18.1.1 Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord
under this Lease, whether such sum be any installment of the rent reserved by this Lease, any other
amount treated as additional rent under this Lease, or any other payment or reimbursement to
Landlord required by this Lease, whether or not heated as additional rent under this Lease, and
such failure shall continue for a period of ten (10) days after Tenant receives written notice from
Landlord that such payment was not made when due, but if any such notice shall be given, for the
twelve (12) month period commencing with the date of such notice, the failure to pay within ten
(10) days after due any additional sum of money becoming due to be paid to Landlord under this
Lease during such period shall be an Event of Default, without notice. The notice required
pursuant to this Section 18.1.1 shall replace rather than supplement any statutory notice required
under California Code of Civil Procedure Section 1161 or any similar or successor statute.

               18.1.2 Tenant shall fail to comply with any term, provision or covenant of this Lease which is
not provided for in another Section of this Article and shall not cure such failure within thirty
(30) days (forthwith, if the failure involves a condition posing an imminent threat of injury to
persons or damage to property) after written notice of such failure to Tenant provided, however,
that such failure shall not be an event of default if such failure could not reasonably be cured
during such thirty (30) day period, Tenant has commenced the cure within such thirty (30) day
period and thereafter is diligently pursuing such cure to completion, but the total aggregate cure
period shall not exceed ninety (90) days.

               18.1.3 Tenant shall fail to vacate the Premises immediately upon termination of this Lease, by
lapse of time or otherwise, or upon termination of Tenant’s right to possession only.

               18.1.4 Tenant or Guarantor shall become insolvent, admit in writing its inability to pay its
debts generally as they become due, file a petition in bankruptcy or a petition to take advantage
of any insolvency statute, make an assignment for the benefit of creditors, make a transfer in
fraud of creditors, apply for or consent to the appointment of a receiver of itself or of the whole
or any substantial part of its property, or file a petition or answer seeking reorganization or
arrangement under the federal bankruptcy laws, as now in effect or hereafter amended, or any other
applicable law or statute of the United States or any state thereof.

               18.1.5 A court of competent jurisdiction shall enter an order, judgment or decree adjudicating
Tenant bankrupt, or appointing a receiver of Tenant, or of the whole or any substantial part of its
property, without the consent of Tenant, or approving a petition filed against Tenant seeking
reorganization or arrangement of Tenant under the bankruptcy laws of the United States, as now in
effect or hereafter amended, or any state thereof, and such order, judgment or decree shall not be
vacated or set aside or stayed within ninety (90) days from the date of entry thereof.

     19. REMEDIES.

          19.1 Upon the occurrence of any Event or Events of Default under this Lease, whether
enumerated in Article 18 or not, Landlord shall have the option to pursue any one or more of the
following remedies without any notice (except as expressly prescribed herein) or demand whatsoever
(and without limiting the generality of the foregoing, Tenant hereby specifically waives notice and
demand for payment of rent or other obligations and waives any and all other notices or demand
requirements imposed by applicable law):

               19.1.1 Terminate this Lease and Tenant’s right to possession of the Premises and recover from
Tenant an award of damages equal to the sum of the following:

                    19.1.1.1 The Worth at the Time of Award of the unpaid rent which had
been earned at the time
of termination;

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                    19.1.1.2 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 rent loss
that Tenant affirmatively proves could have been reasonably avoided;

                    19.1.1.3 The Worth at the Time of Award of the amount by which the
unpaid rent for the balance
of the Term after the time of award exceeds the amount of such rent loss that Tenant affirmatively
proves could be reasonably avoided;

                    19.1.1.4 Any other amount necessary to compensate Landlord for all the
detriment either
proximately caused by Tenant’s failure to perform Tenant’s obligations under this Lease or which in
the ordinary course of things would be likely to result therefrom; and

                    19.1.1.5 All such other amounts in addition to or in lieu of the
foregoing as may be permitted
from time to time under applicable law.

The “Worth at the Time of Award” of the amounts referred to in parts 19.1.1.1 and 19.1.1.2 above,
shall be computed by allowing interest at the lesser of a per annum rate equal to: (i) the greatest
per annum rate of interest permitted from time to time under applicable law, or (ii) the Prime Rate
plus 5%. For purposes hereof, the “Prime Rate” shall be the per annum interest rate publicly
announced as its prime or base rate by a federally insured bank selected by Landlord in the State
of California. The “Worth at the Time of Award” of the amount referred to in part 19.1.1.3, above,
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 1%;

               19.1.2 Employ the remedy described in California Civil Code § 1951.4 (Landlord may continue
this Lease in effect after Tenant’s breach and abandonment and recover rent as it becomes due, if
Tenant has the right to sublet or assign, subject only to reasonable limitations); or

               19.1.3 Notwithstanding Landlord’s exercise of the remedy described in California Civil Code
§
1951.4 in respect of an Event or Events of Default, at such time thereafter as Landlord may elect
in writing, to terminate this Lease and Tenant’s right to possession of the Premises and recover an
award of damages as provided above in Section 19.1.1.

          19.2 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 waiver by Landlord
of any breach hereof shall be effective unless such waiver is in writing and signed by Landlord.

          19.3 TENANT HEREBY WAIVES ANY AND ALL RIGHTS CONFERRED BY SECTION 3275 OF THE CIVIL CODE OF
CALIFORNIA AND BY SECTIONS 1174 (c) AND 1179 OF THE CODE OF CIVIL PROCEDURE OF CALIFORNIA AND ANY
AND ALL OTHER REGULATIONS AND RULES OF LAW FROM TIME TO TIME IN EFFECT DURING THE TERM PROVIDING
THAT TENANT SHALL HAVE ANY RIGHT TO REDEEM, REINSTATE OR RESTORE THIS LEASE FOLLOWING ITS
TERMINATION BY REASON OF TENANT’S BREACH. TENANT ALSO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF OR RELATING TO THIS
LEASE.

          19.4 No right or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and
in addition to any other right or remedy given hereunder or now or hereafter existing by agreement,
applicable law or in equity. In addition to other remedies provided in this Lease, Landlord shall
be entitled, to the extent permitted by applicable law, to injunctive relief, or to a decree
compelling performance of any of the covenants, agreements, conditions or provisions of this Lease,
or to any other remedy allowed to Landlord at law or in equity. Forbearance by Landlord to enforce
one or more of the remedies herein provided upon an Event of Default shall not be deemed or
construed to constitute a waiver of such Default.

          19.5 This Article 19 shall be enforceable to the maximum extent such enforcement is not
prohibited by applicable law, and the unenforceability of any portion thereof shall not thereby
render unenforceable any other portion.

          19.6 If more than three (3) Events of Default occur during the Term or any renewal thereof,
Tenant’s renewal options, expansion options, purchase options and rights of first offer and/or
refusal, if any are provided for in this Lease, shall be null and void.

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          19.7 If, on account of any breach or default by Tenant in Tenant’s obligations under the terms
and conditions of this Lease, it shall become necessary or appropriate for Landlord to employ or
consult with an attorney or collection agency concerning or to enforce or defend any of Landlord’s
rights or remedies arising under this Lease or to collect any sums due from Tenant (without the
filing of an action), Tenant agrees to pay all costs and fees so incurred by Landlord, including,
without limitation, reasonable attorneys’ fees and costs. If either party institutes a suit
against the other for violation of or to enforce any covenant, term or condition of this Lease, the
prevailing party shall be entitled to all of its costs and expenses, including, without limitation,
reasonable attorneys’ fees. TENANT EXPRESSLY WAIVES ANY RIGHT TO: (A) TRIAL BY JURY; AND (B)
SERVICE OF ANY NOTICE REQUIRED BY ANY PRESENT OR FUTURE LAW OR ORDINANCE APPLICABLE TO LANDLORDS OR
TENANTS BUT NOT REQUIRED BY THE TERMS OF THIS LEASE.

          19.8 Upon the occurrence of an Event of Default, Landlord may (but shall not be obligated to)
cure such default at Tenant’s sole expense. Without limiting the generality of the foregoing,
Landlord may, at Landlord’s option, enter into and upon the Premises if Landlord determines in its
sole discretion that Tenant is not acting within a commercially reasonable time to maintain, repair
or replace anything for which Tenant is responsible under this Lease or to otherwise effect
compliance with its obligations under this Lease and correct the same, without being deemed in any
manner guilty of trespass, eviction or forcible entry and detainer and without incurring any
liability for any damage or interruption of Tenant’s business resulting therefrom and Tenant agrees
to reimburse Landlord within thirty (30) days of Landlord’s demand (which demand shall be
accompanied by reasonable evidence of the costs so incurred) as additional rent, for any expenses
which Landlord may incur in thus effecting compliance with Tenant’s obligations under this Lease,
plus interest from the date of expenditure by Landlord at the Wall Street Journal prime rate.

          19.9 If Landlord defaults in performing any of its non-structural repair and maintenance
obligations to the Premises as expressly stated in this Lease and such default creates a risk of
imminent injury to person or substantial property damage or unreasonably and materially interferes
with Tenant’s ability to conduct its business at the Premises, and such default is not remedied by
Landlord within thirty (30) days after Tenant shall have given Landlord written notice specifying
such default, and in the case of any such default which cannot with due diligence and in good faith
be cured within thirty (30) days, within such additional period, if any, as may be reasonably
required to cure such default with due diligence and in good faith (it being intended that, in
connection with any such default which is not susceptible of being cured with due diligence and in
good faith within thirty (30) days, the time within which Landlord is required to cure such default
shall be extended for such additional period as may be necessary for the curing thereof with due
diligence and in good faith), then Tenant, without being obligated to do so, shall have the right,
but not the obligation, to perform the nonstructural repair or maintenance obligation to the
Premises which Landlord failed to perform. The full amount of the reasonable costs and expenses so
incurred by Tenant (the “Reimbursable Costs”) shall be paid by Landlord to Tenant, within thirty
(30) days after written demand therefore (provided that such written demand is accompanied by
reasonable documented evidence of the Reimbursable Costs). In the event that Landlord fails to so
reimburse Tenant, Tenant may offset from Tenant’s obligation to pay Annual Rent to Landlord an
amount not to exceed twenty-five percent (25%) of the then-current Monthly Installment of Rent (the
“Offset Amount”) and apply such Offset Amount to the unpaid balance of the Reimbursable Costs until
such Reimbursable Costs are paid in full. Tenant shall give advance notice by telephone to the
individual from time to time designated by Landlord to receive such notice of Tenant’s intention to
exercise its rights under this Article in the case of an emergency.

     20. TENANT’S BANKRUPTCY OR INSOLVENCY.

          20.1 If at any time and for so long as Tenant shall be subjected to the provisions of the
United States Bankruptcy Code or other law of the United States or any state thereof for the
protection of debtors as in effect at such time (each a “Debtor’s Law”):

               20.1.1 Tenant, Tenant as debtor-in-possession, and any trustee or receiver of Tenant’s assets
(each a “Tenant’s Representative”) shall have no greater right to assume or assign this Lease or
any interest in this Lease, or to sublease any of the Premises than accorded to Tenant in Article
9, except to the extent Landlord shall be required to permit such assumption, assignment or
sublease by the provisions of such Debtor’s Law. Without limitation of the generality of the
foregoing, any right of any Tenant’s Representative to assume or assign this Lease or to sublease
any of the Premises shall be subject to the conditions that:

                    20.1.1.1 Such Debtor’s Law shall provide to Tenant’s
Representative a right of assumption of
this Lease which Tenant’s Representative shall have timely exercised and Tenant’s Representative
shall have fully cured any default of Tenant under this Lease.

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                    20.1.1.2 Tenant’s Representative or the proposed assignee, as the
case shall be, shall have
deposited with Landlord as security for the timely payment of rent an amount equal to the larger
of: (a) three (3) months’ rent and other monetary charges accruing under this Lease; and (b) any
sum specified in Article 5; and shall have provided Landlord with adequate other assurance of the
future performance of the obligations of the Tenant under this Lease. Without limitation, such
assurances shall include, at least, in the case of assumption of this Lease, demonstration to the
satisfaction of the Landlord that Tenant’s Representative has and will continue to have sufficient
unencumbered assets after the payment of all secured obligations and administrative expenses to
assure Landlord that Tenant’s Representative will have sufficient funds to fulfill the obligations
of Tenant under this Lease; and, in the case of assignment, submission of current financial
statements of the proposed assignee, audited by an independent certified public accountant
reasonably acceptable to Landlord and showing a net worth and working capital in amounts determined
by Landlord to be sufficient to assure the future performance by such assignee of all of the
Tenant’s obligations under this Lease.

                    20.1.1.3 The assumption or any contemplated assignment of this Lease
or subleasing any part of
the Premises, as shall be the case, will not breach any provision in any other lease, mortgage,
financing agreement or other agreement by which Landlord is bound.

                    20.1.1.4 Landlord shall have, or would have had absent the
Debtor’s Law, no right under
Article 9 to refuse consent to the proposed assignment or sublease by reason of the identity or
nature of the proposed assignee or sublessee or the proposed use of the Premises concerned.

     21. QUIET ENJOYMENT. Landlord represents and warrants that it has full right and authority to
enter into this Lease and that Tenant, while paying the rental and performing its other covenants
and agreements contained in this Lease, shall peaceably and quietly have, hold and enjoy the
Premises for the Term without hindrance or molestation from Landlord subject to the terms and
provisions of this Lease. Landlord shall not be liable for any interference or disturbance by
other tenants of the Project or third persons, nor shall Tenant be released from any of the
obligations of this Lease because of such interference or disturbance.

     22. CASUALTY

          22.1 In the event the Premises or the Building are damaged by fire or other cause and in
Landlord’s reasonable estimation such damage can be materially restored within two hundred seventy
(270) days from the date of damage, Landlord shall forthwith repair the same and this Lease shall
remain in full force and effect, except that Tenant shall be entitled to a proportionate abatement
in rent from the date of such damage. Such abatement of rent shall be made pro rata in accordance
with the extent to which the damage and the making of such repairs shall interfere with the use and
occupancy by Tenant of the Premises from time to time. Within forty-five (45) days from the date
of such damage, Landlord shall notify Tenant, in writing, of Landlord’s reasonable estimation of
the length of time within which material restoration can be made, and Landlord’s determination
shall be binding on Tenant. For purposes of this Lease, the Building or Premises shall be deemed
“materially restored” if they are in such condition as would not prevent or materially interfere
with Tenant’s use of the Premises for the purpose for which it was being used immediately before
such damage.

          22.2 If such repairs cannot, in Landlord’s reasonable estimation, be made within two hundred
seventy (270) days from the date of damage, Landlord and Tenant shall each have the option of
giving the other, at any time within ninety (90) days after such damage, notice terminating this
Lease as of the date of such damage. In the event of the giving of such notice, this Lease shall
expire and all interest of the Tenant in the Premises shall terminate as of the date of such damage
as if such date had been originally fixed in this Lease for the expiration of the Term. In the
event that neither Landlord nor Tenant exercises its option to terminate this Lease, then Landlord
shall repair or restore such damage, this Lease continuing in full force and effect, and the rent
hereunder shall be proportionately abated as provided in Section 22.1.

          22.3 Landlord shall not be required to repair or replace any damage or loss by or from fire or
other cause to any panelings, decorations, partitions, additions, railings, ceilings, floor
coverings, office fixtures or any other property or improvements installed on the Premises by, or
belonging to, Tenant. Any insurance which may be earned by Landlord or Tenant against loss or
damage to the Building or Premises shall be for the sole benefit of the party carrying such
insurance and under its sole control.

          22.4 In the event that Landlord should fail to complete such repairs and material restoration
within sixty (60) days after the date estimated by Landlord therefor as extended by this Section
22.4, Tenant may at its option and as its sole remedy
terminate this Lease by delivering written notice to Landlord, within fifteen (15) days after
the expiration of said period of time, whereupon the Lease shall end on the date of such notice or
such later date fixed in such notice as if the date

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of such notice was the date originally fixed in this Lease for the expiration of the Term;
provided, however, that if construction is delayed because of changes, deletions or additions in
construction requested by Tenant, strikes, lockouts, casualties, Acts of God, war, material or
labor shortages, government regulation or control or other causes beyond the reasonable control of
Landlord, the period for restoration, repair or rebuilding shall be extended for up to six (6)
months for the amount of time Landlord is so delayed.

          22.5 Notwithstanding anything to the contrary contained in this Article: (a) Landlord shall
not have any obligation whatsoever to repair, reconstruct, or restore the Premises when the damages
resulting from any casualty covered by the provisions of this Article 22 occur during the last
twenty-four (24) months of the Term or any extension thereof, but if Landlord determines not to
repair such damages Landlord shall notify Tenant and if such damages shall render any material
portion of the Premises untenantable Tenant shall have the right to terminate this Lease by notice
to Landlord within fifteen (15) days after receipt of Landlord’s notice; and (b) in the event the
holder of any indebtedness secured by a mortgage or deed of trust covering the Premises or Building
requires that any insurance proceeds be applied to such indebtedness, then Landlord shall have the
right to terminate this Lease by delivering written notice of termination to Tenant within fifteen
(15) days after such requirement is made by any such holder, whereupon this Lease shall end on the
date of such damage as if the date of such damage were the date originally fixed in this Lease for
the expiration of the Term.

          22.6 In the event of any damage or destruction to the Building or Premises by any peril
covered by the provisions of this Article 22, it shall be Tenant’s responsibility to properly
secure the Premises and upon notice from Landlord to remove forthwith, at its sole cost and
expense, such portion of all of the property belonging to Tenant or its licensees from such portion
or all of the Building or Premises as Landlord shall request.

          22.7 Tenant hereby waives any and all rights under and benefits of Sections 1932(2) and
1933(4) of the California Civil Code, or any similar or successor Regulations or other laws now or
hereinafter in effect.

          22.8 Landlord will not be entitled to terminate this Lease solely because the casualty occurs
during the last twenty-four (24) months of the Term if Tenant has an exercisable option to renew or
extend the Term and Tenant, within ten (10) days after receipt of Landlord’s notice of termination,
validly exercises such right (the time periods for exercise of the option to renew set forth in
Section 39.1.1 shall not apply for purposes of this Section 22.8). The foregoing shall not
prohibit Landlord from exercising its right to terminate for any of the other reasons set forth
herein.

     23. EMINENT DOMAIN. If all or any substantial part of the Premises shall be taken or
appropriated by any public or quasi-public authority under the power of eminent domain, or
conveyance in lieu of such appropriation, either party to this Lease shall have the right, at its
option, of giving the other, at any time within thirty (30) days after such taking, notice
terminating this Lease, except that Tenant may only terminate this Lease by reason of taking or
appropriation, if such taking or appropriation shall be so substantial as to materially interfere
with Tenant’s use and occupancy of the Premises. If neither party to this Lease shall so elect to
terminate this Lease, the rental thereafter to be paid shall be adjusted on a fair and equitable
basis under the circumstances. In addition to the rights of Landlord above, if any substantial
part of the Building shall be taken or appropriated by any public or quasi-public authority under
the power of eminent domain or conveyance in lieu thereof, and regardless of whether the Premises
or any part thereof are so taken or appropriated, Landlord shall have the right, at its sole
option, to terminate this Lease. Landlord shall be entitled to any and all income, rent, award, or
any interest whatsoever in or upon any such sum, which may be paid or made in connection with any
such public or quasi-public use or purpose, and Tenant hereby assigns to Landlord any interest it
may have in or claim to all or any part of such sums, other than any separate award which may be
made with respect to Tenant’s trade fixtures and moving expenses; Tenant shall make no claim for
the value of any unexpired Term. Tenant hereby waives any and all rights under and benefits of
Section 1265.130 of the California Code of Civil Procedure, or any similar or successor Regulations
or other laws now or hereinafter in effect.

     24. SALE BY LANDLORD. In event of a sale or conveyance by Landlord of the Building, the same
shall operate to release Landlord from any future liability upon any of the covenants or
conditions, expressed or implied, contained in this Lease in favor of Tenant, provided that any
successor pursuant to a voluntary third-party transfer (but not as a result of an involuntary
transfer resulting for a foreclosure or deed in lieu thereof) shall have assumed Landlord’s
obligations under this Lease either by contractual obligation, assumption agreement or by operation
of law, and in such event Tenant agrees to look solely to the responsibility of the successor in
interest of Landlord in and to this Lease. Except as set forth in this Article 24, this Lease
shall not be affected by any such sale and Tenant agrees to attorn to the purchaser or assignee.
If any security has been given by Tenant to secure the faithful performance of any of the covenants
of this Lease, Landlord shall transfer or deliver the unapplied portion of said security, as such,
to Landlord’s successor in interest and thereupon Landlord shall be discharged from any further
liability with regard to said security.

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     25. ESTOPPEL CERTIFICATES. Within ten (10) business days following any written request which
Landlord may make from time to time, Tenant shall execute and deliver to Landlord or mortgagee or
prospective mortgagee a sworn statement certifying: (a) the date of commencement of this Lease; (b)
the fact that this Lease is unmodified and in full force and effect (or, if there have been
modifications to this Lease, that this lease is in full force and effect, as modified, and stating
the date and nature of such modifications); (c) the date to which the rent and other sums payable
under this Lease have been paid; (d) the fact that, to the best knowledge of Tenant, there are no
current defaults under this Lease by either Landlord or Tenant except as specified in Tenant’s
statement; and (e) such other matters as may be requested by Landlord; provided that Tenant may
qualify its response to such other matters as being to its best knowledge. Landlord and Tenant
intend that any statement delivered pursuant to this Article 25 may be relied upon by any
mortgagee, beneficiary or purchaser, and Tenant shall be liable for all loss, cost or expense
resulting from the failure of any sale or funding of any loan caused by any material misstatement
contained in such estoppel certificate. Tenant irrevocably agrees that if Tenant fails to execute
and deliver such certificate within such ten (10) day period Landlord or Landlord’s beneficiary or
agent may execute and deliver such certificate on Tenant’s behalf, and that such certificate shall
be fully binding on Tenant. Landlord shall, within ten (10) business days after receipt of a
written request from Tenant, execute and deliver a commercially reasonable estoppel certificate to
those parties as are reasonably requested by Tenant. Such estoppel certificate may include a
certification as to the status of this Lease, Landlord’s then-current actual knowledge of the
existence of any defaults hereunder and the amount of rent that is due and payable.

     26. SURRENDER OF PREMISES.

          26.1 Tenant shall offer to meet Landlord for two (2) joint inspections of the Premises, the
first to occur at least thirty (30) days (but no more than sixty (60) days) before the last day of
the expiration or termination of the Term, and the second to occur not later than forty-eight (48)
hours after Tenant has vacated the Premises. In the event of Tenant’s failure to participate in
such joint inspections, Landlord’s inspection at or after Tenant’s vacating the Premises shall be
conclusively deemed correct for purposes of determining Tenant’s responsibility for repairs and
restoration.

          26.2 All alterations, additions, and improvements in, on, or to the Premises made or installed
by or for Tenant, including carpeting (collectively, “Alterations”), shall be and remain the
property of Tenant during the Term. Upon the expiration or sooner termination of the Term, all
Alterations shall become a part of the realty and shall belong to Landlord without compensation,
and title shall pass to Landlord under this Lease as by a bill of sale. At the end of the Term or
any renewal of the Term or other sooner termination of this Lease, Tenant will peaceably deliver up
to Landlord possession of the Premises, together with all Alterations by whomsoever made, in the
same conditions received or first installed, broom clean and free of all debris, excepting only
reasonable wear and tear, damage by fire, other casualty and taking. Notwithstanding the
foregoing, if Landlord elects by notice given to Tenant at the time the Landlord gives its consent
to Tenant to make Alterations (or at least ten (10) days prior to expiration of the Term if Tenant
fails to comply with Section 6.4 in requesting consent for the Alterations), Tenant shall, at
Tenant’s sole cost, remove any Alterations, including telecommunications and data lines and
cabling, so designated by Landlord’s notice, and repair any damage caused by such removal, provided
that Tenant shall not be required to remove any portion of the Initial Alterations shown on the
Plans as of the date of this Lease, as such terms are defined in Exhibit B hereto, except
that telecommunications and data lines and cabling must be removed in any event. Tenant must, at
Tenant’s sole cost, remove upon termination of this Lease, any and all of Tenant’s furniture,
furnishings, movable partitions of less than full height from floor to ceiling and other trade
fixtures and personal property (collectively, “Personalty”). Personalty not so removed shall be
deemed abandoned by the Tenant and title to the same shall thereupon pass to Landlord under this
Lease as by a bill of sale, but Tenant shall remain responsible for the cost of removal and
disposal of such Personalty, as well as any damage caused by such removal. In lieu of requiring
Tenant to remove Alterations and Personalty and repair the Premises as aforesaid, Landlord may, by
written notice to Tenant delivered at least thirty (30) days before the Termination Date, require
Tenant to pay to Landlord, as additional rent hereunder, the cost of such removal and repair in an
amount reasonably estimated by Landlord; provided, however, if Tenant has a bona fide estimate from
a contractor acceptable to Landlord for the removal and repair work which is less than the
estimated amount stated in Landlord’s notice to Tenant for the same work, and such contractor
agrees to provide equal pricing to Landlord, Landlord shall elect to either accept such lower
amount from Tenant or shall require Tenant to remove the subject Alterations and Personalty, which
removal shall be performed in accordance with the terms hereof.

          26.3 All obligations of Tenant under this Lease not fully performed as of the expiration or
earlier termination of the Term shall survive the expiration or earlier termination of the Term.
Upon the expiration or earlier termination of the Term, Tenant shall pay to Landlord the amount, as
reasonably estimated by Landlord, necessary to repair and restore the Premises as
provided in this Lease and/or to discharge Tenant’s obligation for unpaid amounts due or to
become due to Landlord. All such amounts shall be used and held by Landlord for payment of such
obligations of Tenant, with Tenant being liable for any additional costs upon demand by Landlord,
or with any excess to be returned to Tenant after all such

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obligations have been determined and satisfied. Any otherwise unused Security Deposit shall be
credited against the amount payable by Tenant under this Lease.

     27. NOTICES. Any notice or document required or permitted to be delivered under this Lease
shall be addressed to the intended recipient, by fully prepaid registered or certified United
States Mail return receipt requested, or by reputable independent contract delivery service
furnishing a written record of attempted or actual delivery, and shall be deemed to be delivered
when tendered for delivery to the addressee at its address set forth on the Reference Pages, or at
such other address as it has then last specified by written notice delivered in accordance with
this Article 27. Any such notice or document may also be personally delivered if a receipt is
signed by and received from, the individual, if any, named in Tenant’s Notice Address.

     28. TAXES PAYABLE BY TENANT. In addition to rent and other charges to be paid by Tenant under
this Lease, Tenant shall reimburse to Landlord, upon demand, any and all taxes payable by Landlord
(other than net income taxes) whether or not now customary or within the contemplation of the
parties to this Lease: (a) upon, allocable to, or measured by or on the gross or net rent payable
under this Lease, including without limitation any gross income tax or excise tax levied by the
State, any political subdivision thereof, or the Federal Government with respect to the receipt of
such rent; (b) upon or with respect to the possession, leasing, operation, management, maintenance,
alteration, repair, use or occupancy of the Premises or any portion thereof, including any sales,
use or service tax imposed as a result thereof; (c) upon or measured by the Tenant’s gross receipts
or payroll or the value of Tenant’s equipment, furniture, fixtures and other personal property of
Tenant or leasehold improvements, alterations or additions located in the Premises; or (d) upon
this transaction or any document to which Tenant is a party creating or transferring any interest
of Tenant in this Lease or the Premises. In addition to the foregoing, Tenant agrees to pay,
before delinquency, any and all taxes levied or assessed against Tenant and which become payable
during the term hereof upon Tenant’s equipment, furniture, fixtures and other personal property of
Tenant located in the Premises.

     29. RELOCATION OF TENANT. [INTENTIONALLY OMITTED]

     30. DEFINED TERMS AND HEADINGS. The Article headings shown in this Lease are for convenience
of reference and shall in no way define, increase, limit or describe the scope or intent of any
provision of this Lease. Any indemnification or insurance of Landlord shall apply to and inure to
the benefit of all the following “Landlord Entities”, being Landlord, Landlord’s investment
manager, and the trustees, boards of directors, officers, general partners, beneficiaries,
stockholders, employees and agents of each of them. Any option granted to Landlord shall also
include or be exercisable by Landlord’s trustee, beneficiary, agents and employees, as the case may
be. In any case where this Lease is signed by more than one person, the obligations under this
Lease shall be joint and several. The terms “Tenant” and “Landlord” or any pronoun used in place
thereof shall indicate and include the masculine or feminine, the singular or plural number,
individuals, firms or corporations, and their and each of their respective successors, executors,
administrators and permitted assigns, according to the context hereof. The term “rentable area”
shall mean the rentable area of the Premises or the Building as calculated by the Landlord on the
basis of the plans and specifications of the Building. Tenant hereby accepts and agrees to be
bound by the figures for the rentable square footage of the Premises and Tenant’s Proportionate
Share shown on the Reference Pages; however, Landlord may adjust either or both figures if there is
manifest error, addition or subtraction to the Building or any business park or complex of which
the Building is a part, remeasurement or other circumstance reasonably justifying adjustment.
Notwithstanding the foregoing, in the event that any remeasurement of the Premises pursuant to the
Section results in a change in the rentable square footage of the Premises, there shall be no
adjustment to the amount of Monthly Installment of Rent and Annual Rent payable by Tenant pursuant
to this Lease during the initial Term of this Lease. The term “Building” refers to the structure
in which the Premises are located and the common areas (parking lots, sidewalks, landscaping, etc.)
appurtenant thereto.

     31. AUTHORITY. If Tenant signs as a corporation, partnership, trust or other legal entity,
Tenant represents and warrants that (a) the entity has been and is qualified to do business in the
state in which the Building is located, (b) the entity has full right and authority to enter into
this Lease, and (c) all persons signing on behalf of the entity were authorized to do so by
appropriate actions. Tenant agrees to deliver to Landlord, simultaneously with the delivery of
this Lease, a corporate resolution, proof of due authorization by partners, opinion of counsel or
other appropriate documentation reasonably acceptable to Landlord evidencing the due authorization
of Tenant to enter into this Lease. Landlord represents and warrants that it has full right and
authority to enter into this Lease and to perform all of Landlord’s obligations hereunder and that
all persons signing this Lease on its behalf are authorized to do so.

     32. FINANCIAL STATEMENTS AND CREDIT REPORTS. At Landlord’s request (which request shall not
be made more than two (2) times in any period of twelve (12) months unless Tenant is then in
default), Tenant shall deliver to

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Landlord a copy, certified by an officer of Tenant as being a true and correct copy, of Tenant’s
most recent audited financial statement, or, if unaudited, certified by Tenant’s chief financial
officer as being true, complete and correct in all material respects. Tenant hereby authorizes
Landlord to obtain one or more credit reports on Tenant at any time, and shall execute such further
authorizations as Landlord may reasonably require in order to obtain a credit report. At the
request of Landlord from time to time, Tenant shall provide to Landlord Guarantor’s current
financial statements or other information discussing financial worth of Guarantor as reasonably
requested by Landlord.

     33. COMMISSIONS. Each of the parties represents and warrants to the other that it has not
dealt with any broker or finder in connection with this Lease, except as described on the Reference
Pages.

     34. TIME AND APPLICABLE LAW. Time is of the essence of this Lease and all of its provisions.
This Lease shall in all respects be governed by the laws of the state in which the Building is
located.

     35. SUCCESSORS AND ASSIGNS. Subject to the provisions of Article 9, the terms, covenants and
conditions contained in this Lease shall be binding upon and inure to the benefit of the heirs,
successors, executors, administrators and assigns of the parties to this Lease.

     36. ENTIRE AGREEMENT. This Lease, together with its exhibits, contains all agreements of the
parties to this Lease and supersedes any previous negotiations. There have been no representations
made by the Landlord or any of its representatives or understandings made between the parties other
than those set forth in this Lease and its exhibits. This Lease may not be modified except by a
written instrument duly executed by the parties to this Lease.

     37. EXAMINATION NOT OPTION. Submission of this Lease shall not be deemed to be a reservation
of the Premises. Landlord shall not be bound by this Lease until it has received a copy of this
Lease duly executed by Tenant and has delivered to Tenant a copy of this Lease duly executed by
Landlord, and until such delivery Landlord reserves the right to exhibit and lease the Premises to
other prospective tenants. Notwithstanding anything contained in this Lease to the contrary,
Landlord may withhold delivery of possession of the Premises from Tenant until such time as Tenant
has paid to Landlord any security deposit required by Article 5, the first month’s rent as set
forth in Article 3 and any sum owed pursuant to this Lease.

     38. RECORDATION. Tenant shall not record or register this Lease or a short form memorandum
hereof without the prior written consent of Landlord, and then shall pay all charges and taxes
incident to such recording or registration.

     39. OPTION TO RENEW.

          39.1 Tenant shall, provided the Lease is in full force and effect and there is no Event of
Default by Tenant under any of the terms and conditions of this Lease at the time of notification,
have one (1) option to renew (the “Renewal Option”) this Lease for a term of five (5) years (the
“Renewal Term”), for the portion of the Premises being leased by Tenant as of the date the Renewal
Term is to commence, on the same terms and conditions set forth in this Lease, except as modified
by the terms, covenants and conditions as set forth below:

               39.1.1 If Tenant elects to exercise the Renewal Option, then Tenant shall provide Landlord
with written notice no earlier than the date which is three hundred sixty-five (365) days prior to
the expiration of the Term of this Lease but no later than the date which is one hundred eighty
(180) days prior to the expiration of the Term of this Lease. If Tenant fails to provide such
notice, Tenant shall have no further right to extend or renew the Term of this Lease.

               39.1.2 The Annual Rent and Monthly Installment of Rent in effect at the expiration of the then
current Term of this Lease shall be changed to reflect the Prevailing Market (as defined in Section
39.1.6) rate. Landlord shall advise Tenant of the new Annual Rent and Monthly Installment of Rent
for the Premises no later than thirty (30) days after receipt of Tenant’s written request therefor.
Said request shall be made no earlier than thirty (30) days prior to the first date on which
Tenant may exercise its Renewal Option under this Article 39. Said notification of the new Annual
Rent may include a provision for its escalation to provide for a change in the Prevailing Market
rate between the time of notification and the commencement of the Renewal Term.

                    39.1.2.1 If Tenant and Landlord are unable to agree on a mutually
acceptable rental rate for
the Renewal Term not later than one hundred twenty (120) days prior to the expiration of the then
current Term, then Landlord and Tenant, within five (5) days after such date, shall each
simultaneously submit to the other, in a sealed envelope, its good faith estimate of the Prevailing
Market rate for the Premises during the Renewal Term (collectively referred to as

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the “Estimates”). If the higher of such Estimates is not more than one hundred five percent (105%)
of the lower of such Estimates, then the Prevailing Market rate shall be the average of the two
Estimates. If the Prevailing Market rate is not established by the exchange of Estimates, then,
within seven (7) days after the exchange of Estimates, Landlord and Tenant shall each give notice
to the other party selecting an appraiser to determine which of the two Estimates most closely
reflects the Prevailing Market rate for the Premises during the Renewal Term. Each appraiser so
selected shall be certified as an MAI appraiser or as an ASA appraiser who has not done business
with either party and shall have had at least five (5) years experience within the previous ten
(10) years as a real estate appraiser working in Mountain View, California, with working knowledge
of current rental rates and practices. For purposes hereof, an “MAI” appraiser means an individual
who holds an MAI designation conferred by, and is an independent member of, the American Institute
of Real Estate Appraisers (or its successor organization, or in the event there is no successor
organization, the organization and designation most similar), and an “ASA” appraiser means an
individual who holds the Senior Member designation conferred by, and is an independent member of,
the American Society of Appraisers (or its successor organization, or, in the event there is no
successor organization, the organization and designation most similar).

                    39.1.2.2 Upon selection, Landlord’s and Tenant’s appraisers
shall work together in good faith
to agree upon which of the two Estimates most closely reflects the Prevailing Market rate for the
Premises. The Estimate chosen by such appraisers shall be binding on both Landlord and Tenant. If
either Landlord or Tenant fails to appoint an appraiser within the seven (7) day period referred to
above, then the party which has appointed an appraiser shall give the other party written notice of
such failure, and if the party who has not appointed an appraiser still has not appointed an
appraiser within seven (7) days after its receipt of such reminder notice, the appraiser appointed
by the other party shall be the sole appraiser for the purposes hereof. If the two appraisers
cannot agree upon which of the two Estimates most closely reflects the Prevailing Market rate
within twenty (20) days after their appointment, then, within ten (10) days after the expiration of
such twenty (20) day period, the two appraisers shall select a third appraiser meeting the
aforementioned criteria. Once the third appraiser (i.e., the arbitrator) has been selected as
provided for above, then, as soon thereafter as practicable but in any case within fourteen (14)
days, the arbitrator shall make his or her determination of which of the two Estimates most closely
reflects the Prevailing Market rate and such Estimate shall be binding on both Landlord and Tenant
as the Prevailing Market rate for the Premises. If the arbitrator believes that expert advice
would materially assist him or her, he or she may retain one or more qualified persons to provide
such expert advice. The parties shall share equally in the costs of the arbitrator and of any
experts retained by the arbitrator. Any fees of any appraiser, counsel or experts engaged directly
by Landlord or Tenant, however, shall be borne by the party retaining such appraiser, counsel or
expert.

                    39.1.2.3 If the Prevailing Market rate has not been determined by the
commencement date of the
Renewal Term, Tenant shall pay Monthly Installments of Rent upon the terms and conditions in effect
during the last month of the initial Term until such time as the Prevailing Market rate has been
determined. Upon such determination, the Annual Rent and Monthly Installments of Rent for the
Premises shall be retroactively adjusted to the commencement of such Renewal Term for the Premises.

               39.1.3 This Renewal Option is not transferable; the parties hereto acknowledge and agree that
they intend that the aforesaid option to renew this Lease shall be “personal” to Tenant and any
Permitted Transferee (as defined in Section 9.8 of this Lease) as set forth above and that in no
event will any assignee or sublessee have any rights to exercise the aforesaid option to renew;
provided, however, that Tenant shall not lose the right to exercise the Renewal Option by reason of
subleasing a portion of the Premises so long as, at the time of commencement of the Renewal Term,
Tenant together with any Permitted Transferee is not then occupying in the aggregate less than 50%
of the rental floor area of the Premises.

               39.1.4 When the Renewal Option is exercised (or if Tenant fails to properly exercise the
Renewal Option), Tenant shall have no further right to extend the term of this Lease.

               39.1.5 For purposes of this Renewal Option, “Prevailing Market” shall mean the arms length
fair market annual rental rate per rentable square foot under leases and renewal and expansion
amendments entered into on or about the date on which the Prevailing Market is being determined
hereunder for space comparable to the Premises in the Building and buildings comparable to the
Building in the Mountain View, California area as of the date the Renewal Term is to commence,
taking into account the specific provisions of this Lease which will remain constant, and may, if
applicable, include parking charges. The determination of Prevailing Market shall take into
account any material economic differences between the terms of this Lease and any comparison lease
or amendment, such as rent abatements, construction costs and other concessions and the manner, if
any, in which the landlord under any such lease is reimbursed for operating expenses and taxes.

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     40. SIGNAGE.

          40.1 Except as expressly set forth in this Section, no sign, placard, picture, advertisement,
name or notice (collectively referred to as “Signs”) shall be installed or displayed on any part of
the outside of the Building without the prior written consent of the Landlord which consent shall
be in Landlord’s sole discretion. All approved Signs shall be printed, painted, affixed or
inscribed at Tenant’s expense by a person or vendor approved by Landlord and shall be removed by
Tenant at Tenant’s expense upon vacating the Premises. Landlord shall have the right to remove any
Sign installed or displayed in violation of this rule at Tenant’s expense and without notice.
Notwithstanding the foregoing, Tenant shall be entitled to one eyebrow sign to be located at a
location on the building mutually acceptable to Landlord and Tenant (“Eyebrow Signage”), and for
Landlord, at Tenant’s expense, to add Tenant’s name on the monument sign (“Monument Signage”).
Such right to Eyebrow Signage and Monument Signage (collectively, “Building Signage”) is personal
to Tenant and is subject to the following terms and conditions:

               40.1.1 Tenant shall submit plans and drawings for the Eyebrow Signage to the City of Mountain
View and to any other public authorities having jurisdiction and shall obtain written approval from
each such jurisdiction prior to installation, and shall fully comply with all applicable laws,
rules, regulations, codes and ordinances.

               40.1.2 Tenant shall, at Tenant’s sole cost and expense (subject to Tenant’s right to apply
the
Allowance against such costs), design, construct and install the Eyebrow Signage. Landlord shall,
at Tenant’s sole cost and expense (subject to Tenant’s right to apply the Allowance against such
costs), design, construct and install the Monument Signage.

               40.1.3 The Building Signage shall be subject to Landlord’s prior written approval, which
Landlord shall not be unreasonably withheld, condition or delayed.

               40.1.4 Tenant shall maintain the Eyebrow Signage in good condition and repair, and all costs
of maintenance and repair shall be borne by Tenant. Maintenance shall include, without limitation,
cleaning and, if the Eyebrow Signage is illuminated, relamping at reasonable intervals. Tenant
shall be responsible for any electrical energy used in connection with the Eyebrow Signage.
Notwithstanding the foregoing, Tenant shall not be liable for any fee in connection with Tenant’s
right to display the Building Signage in accordance with this Lease. At Landlord’s option,
Tenant’s right to the Building Signage may be revoked and terminated upon occurrence of any of the
following events:

                    40.1.4.1 Tenant together with any Permitted Transferee occupies in the
aggregate less than 75%
of the rentable square footage of the Premises.

                    40.1.4.2 This Lease shall terminate or otherwise no longer be in
effect.

               40.1.5 Upon the expiration or earlier termination of this Lease or at such other time that
Tenant’s signage rights are terminated pursuant to the terms hereof, if Tenant fails to remove its
signage and repair the Building in accordance with the terms of this Lease, Landlord shall cause
Tenant’s signage to be removed from the Building and the Building to be repaired and restored to
the condition which existed prior to the installation of Tenant’s signage (including, if necessary,
the replacement of any precast concrete panels), all at the sole cost and expense of Tenant and
otherwise in accordance with this Lease, without further notice from Landlord notwithstanding
anything to the contrary contained in this Lease, Tenant shall pay all costs and expenses for such
removal and restoration within thirty (30) days following delivery of an invoice therefor, and such
obligation shall survive any termination of this Lease. The rights provided in this Section 40
shall be non-transferable (other than pursuant to a Permitted Transfer, as defined in Section 9.8
of this Lease) unless otherwise agreed by Landlord in writing in its sole discretion.

               40.1.6 Prior to fabrication and installation of tenant signs, scaled drawings must be provided
to Landlord for approval, which approval shall not be unreasonably withheld, condition or delayed.
Tenant is responsible for drawing, permit, manufacturing and installation and removal costs of its
signs.

     41. HAZARDOUS MATERIALS.

          41.1 Tenant agrees that neither Tenant or any Tenant Entities shall Handle any Hazardous
Materials on, under, or about the Premises (as such terms are defined in Article 1) without
Landlord’s prior written consent (which consent shall not be unreasonably withheld as long as
Tenant demonstrates and documents to Landlord’s reasonable satisfaction (i) that such Hazardous
Materials (A) are necessary or useful to Tenant’s business; and (B) will be used, kept, and stored
in compliance with all laws relating to any Hazardous Materials so brought or used or kept in or
about the Premises; and (ii) that

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Tenant will give all required notices concerning the presence in or on the Premises or the release
of such Hazardous Materials from the Premises) provided that Tenant may Handle products containing
small quantities of Hazardous Materials, which products are of a type customarily found in offices
and households (such as aerosol cans containing insecticides, toner for copies, paints, paint
remover, and the like), provided further that Tenant shall Handle any such Hazardous Materials in a
safe and lawful manner and shall not allow such Hazardous Materials to contaminate the Premises or
the environment.

          41.2 Tenant further agrees that Tenant will not permit any substance suspected of causing
cancer or reproductive toxicity to come into contact with groundwater under the Premises. Any such
substance coming into contact with groundwater shall be considered a Hazardous Material for
purposes of this Article 41.

          41.3 Notwithstanding the provisions of Section 41.1, Tenant may Handle Hazardous Materials,
limited to the types, amounts, and use identified in the Hazardous Materials Questionnaire attached
as Exhibit F to this Lease. If no Hazardous Materials Questionnaire is attached to this
Lease, then this Section 41.3 shall be of no force and effect. Tenant hereby certifies to Landlord
that the information provided by Tenant pursuant to this Section is true, correct, and complete.
Tenant covenants to comply with the use restrictions shown on the attached Hazardous Materials
Questionnaire attached as Exhibit F to this Lease. Tenant’s business and operations, and
more especially its handling, storage, use and disposal of Hazardous Materials shall at all times
comply with all applicable laws pertaining to Hazardous Materials. Tenant shall secure and abide
by all permits necessary for Tenant’s operations on the Premises. Tenant shall give or post all
notices required by all applicable laws pertaining to Hazardous Materials. If Tenant shall at any
time fail to comply with this Article, Tenant shall immediately notify Landlord in writing of such
noncompliance.

          41.4 Tenant shall provide Landlord with a notice (the “Additional HM Notice”), including
copies of any Material Safety Data Sheets (as required by the Occupational Safety and Health Act)
and revised Hazardous Materials Questionnaire relating to any Hazardous Materials to be Handled at
or on the Premises, at least thirty (30) days prior to the first Handling of such Hazardous
Material on the Premises, except as provided in this Section 41.4 below. Landlord shall have ten
(10) days following delivery of such Additional HM Notice to approve or forbid, in its reasonable
discretion subject to the limitation contained in Section 41.1 above, such Handling of a Hazardous
Material on the Premises. Notwithstanding the foregoing provisions of this Section 41.4 to the
contrary, Landlord shall waive the foregoing requirement of thirty (30) days prior receipt of the
Additional HM Notice for Handling of a particular Hazardous Material if Tenant complies with all of
the following requirements: (i) Tenant makes a written request for expedited review either (x) by
the earlier of (a) 24 hours or (b) 5:00 p.m. on the next business day, in either case, following
the first Handling of such Hazardous Material on or about the Premises, or (y) prior to Handling of
new or additional Hazardous Materials on or about the Premises by a proposed Affiliated Party in
connection with a proposed Permitted Transfer (as such terms are defined in Section 9.8 of this
Lease), any such written request to include a copy of the Material Safety Data Sheet and revised
Hazardous Materials Questionnaire for such Hazardous Material; (ii) if Landlord does not approve
such Hazardous Material, Landlord may require Tenant to promptly remove any such Hazardous Material
from the Premises and to cease any Handling of such Hazardous Material at or on the Premises; and
(iii) the waiver provided in this sentence shall be “personal” to Tenant and any Permitted
Transferee and in no event will any assignee or sublessee be entitled to the aforesaid waiver,
Landlord shall use commercially reasonable efforts to expedite approval of any such Hazardous
Material. The reasonable cost of any outside environmental consultant or engineer, if reasonably
needed by Landlord to review or to expedite its review of any proposed new Hazardous Material for
use at or on the Premises, shall be reimbursed by Tenant within thirty (30) days of request by
Landlord.

          41.5 Tenant shall not store hazardous wastes on the premises for more than ninety (90) days;
“hazardous waste” has the meaning given it by the Resource Conservation and Recovery Act of 1976,
as amended, Tenant shall not install any underground or above ground storage tanks on the Premises.
Tenant shall not dispose of any Hazardous Material or solid waste on the Premises. In performing
any alterations of the Premises permitted by the Lease, Tenant shall not install any Hazardous
Material in the Premises without the specific prior written consent of Landlord in its sole
discretion.

          41.6 Any increase in the premiums for necessary insurance on the Building or the property on
which the Building is located (the “Property”) which arises from Tenant’s use and/or storage of
Hazardous Materials shall be solely at Tenant’s expense. Tenant shall procure and maintain at its
sole expense such additional insurance as may be necessary to comply with any requirement of any
Federal, State or local governmental agency with jurisdiction.

          41.7 If Landlord, in its sole discretion, believes that the Premises or the environment have
become contaminated with Hazardous Materials that must be removed under the laws of the state where
the Premises are located, in breach of the provisions of this Lease, and from time to time in any
event, Landlord, in addition to its other rights under this Lease, may enter upon the Premises and
obtain samples from the Premises, including without limitation the soil and groundwater under the
Premises, for the purposes of analyzing the same to determine whether and to what extent the
Premises or the

25

 

environment have become so contaminated. In addition, Landlord may enter upon the Premises
annually or more frequently if Landlord reasonably believes it necessary in order to conduct an
environmental audit, and Tenant shall reasonably cooperate in the conduct of the same. Tenant
shall reimburse Landlord for the costs of any inspection, sampling and analysis that discloses
contamination for which Tenant is liable under the terms of this Article. Tenant may not perform
any sampling, testing, or drilling to locate any Hazardous Materials on the Premises without
Landlord’s prior written consent.

          41.8 Without limiting the above, Tenant shall reimburse, defend, indemnify and hold Landlord
harmless from and against any and all claims, losses, liabilities, damages, costs and expenses,
including without limitation, loss of rental income, loss due to business interruption, and
attorneys fees and costs, arising out of or in any way connected with the use, manufacture,
storage, or disposal of Hazardous Materials by Tenant, its agents or contractors on, under or about
the Premises including, without limitation, the costs of any required or necessary investigation,
repair, cleanup or detoxification and the preparation of any closure or other required plans in
connection herewith, whether voluntary or compelled by governmental authority. The indemnity
obligations of Tenant under this clause shall survive any termination of this Lease. At Landlord’s
option, Tenant shall perform any required or necessary investigation, repair, cleanup, or
detoxification of the Premises. In such case, Landlord shall have the right, in its sole
discretion, to approve all plans, consultants, and cleanup standards. Tenant shall provide
Landlord on a timely basis with (i) copies of all documents, reports, and communications with
governmental authorities; and (ii) notice and an opportunity to attend all meetings with regulatory
authorities. Tenant shall comply with all notice requirements and Landlord and Tenant agree to
cooperate with governmental authorities seeking access to the Premises for purposes of sampling or
inspection. No disturbance of Tenant’s use of the Premises resulting from activities conducted
pursuant to this Article shall constitute an actual or constructive eviction of Tenant from the
Premises. In the event that such cleanup extends beyond the termination of the Lease, Tenant’s
obligation to pay rent (including additional rent and percentage rent, if any) shall continue until
such cleanup is completed and any certificate of clearance or similar document has been delivered
to Landlord. Rent during such holdover period shall be at market rent; if the parties are unable
to agree upon the amount of such market rent, then Landlord shall have the option of (a) increasing
the rent for the period of such holdover based upon the increase in the cost-of-living from the
third month preceding the commencement date to the third month preceding the start of the holdover
period, using such indices and assumptions and calculations as Landlord in its sole reasonable
judgment shall determine are necessary; or (b) having Landlord and Tenant each appoint a qualified
MAI appraiser doing business in the area; in turn, these two independent MAI appraisers shall
appoint a third MAI appraiser and the majority shall decide upon the fair market rental for
Premises as of the expiration of the then current term. Landlord and Tenant shall equally share in
the expense of this appraisal except that in the event the rent is found to be within fifteen
percent of the original rate quoted by Landlord, then Tenant shall bear the full cost of all the
appraisal process. In no event shall the rent be subject to determination or modification by any
person, entity, court, or authority other than as set forth expressly herein, and in no event shall
the rent for any holdover period be less than the rent due in the preceding period.

          41.9 Notwithstanding anything set forth in this Lease, Tenant shall only be responsible for
contamination of Hazardous Materials or any cleanup resulting directly from contamination of
Hazardous Materials, which contamination results directly from Hazardous Materials Handled during
the Lease Term, and any other period of time during which Tenant is in actual or constructive
occupancy of the Premises (i) within the Premises as a result of Handling of any Hazardous Material
by any person or entity whatsoever, or (ii) as a result of any Handling of any Hazardous Material
done or permitted or suffered to be done by any Tenant Entity, whether inside the Premises or not;
provided, however, that in no event shall Tenant be responsible for contamination of Hazardous
Materials resulting from contractors, agents or representatives controlled by Landlord. Tenant
shall take reasonable precautions to prevent the contamination of the Premises with Hazardous
Materials by third parties.

          41.10 It shall not be unreasonable for Landlord to withhold its consent to any proposed
assignment or sublease if (i) the proposed assignee’s or sublessee’s anticipated use of the
premises involves the generation, storage, use, treatment or disposal of Hazardous Materials; (ii)
the proposed assignee or sublessee has been required by any prior landlord, lender, or governmental
authority to take remedial action in connection with Hazardous Materials contaminating a property
if the contamination resulted from such assignee’s or sublessee’s actions or use of the property in
question; or (iii) the proposed assignee or sublessee is subject to an enforcement order issued by
any governmental authority in connection with the use, disposal, or storage of a hazardous
material.

          41.11 Any of Tenant’s insurance insuring against claims of the type dealt with in this Article
shall be considered primary coverage for claims against the Property arising out of or under this
Article.

          41.12 In the event of (i) any transfer of Tenant’s interest under this Lease; or (ii) the
termination of this Lease, by lapse of time or otherwise, Tenant shall be solely responsible for
compliance with any and all then effective federal, state or local laws concerning (i) the physical
condition of the Premises, Building, or Property; or (ii) the presence of hazardous or

26

 

toxic materials in or on the Premises, Building, or Property (for example, the New Jersey
Environmental Cleanup Responsibility Act, the Illinois Responsible Property Transfer Act, or
similar applicable state laws), including but not limited to any reporting or filing requirements
imposed by such laws. Tenant’s duty to pay rent, additional rent, and percentage rent shall
continue until the obligations imposed by such laws are satisfied in full and any certificate of
clearance or similar document has been delivered to Landlord.

          41.13 All consents given by Landlord pursuant to this Article shall be in writing and shall be
attached as amendments to this Lease. If such consents are not attached to this Lease, then such
consents will be deemed withheld.

          41.14 Landlord has heretofore delivered to Tenant the following environmental reports: Phase 1
Environmental Acquisition Study by Hygienetics Environmental Services, Inc., dated November 3,
1998; Annual Environmental Audit by PES Environmental, Inc., dated March 28, 2000; Annual
Environmental Audit (2001) by PES Environmental, Inc., dated August 27, 2001; Annual Environmental
Audit (2002) by PES Environmental, Inc., dated August 29, 2002; Annual Environmental Audit 2003 by
Golder Associates Inc., dated September 22, 2003; Annual Environmental Audit (2004) by PES
Environmental, Inc., dated September 2, 2004, and Phase I Environmental Site Assessment by PES
Environmental, Inc., dated May 2, 2005 (collectively, the “Reports”). Notwithstanding anything to
the contrary contained herein, Tenant shall not distribute or disclose or permit the distribution
or disclosure of any portion of the Reports or the contents thereof to any tenant, prospective
tenant or occupant of the Building or any governmental or quasi-governmental agencies, without
first obtaining the prior written consent of Landlord thereto in Landlord’s sole discretion, and
Landlord, at Landlord’s election, shall be entitled to have a representative participate in any
telephone or other contact made by Tenant to a governmental or quasi-governmental authority or
tenant and present at any meeting by Tenant with a governmental authority or tenant. The Reports
will be kept strictly confidential and except as required by applicable Laws or court order,
without Landlord’s prior written consent, Tenant shall not (a) use the Reports or the contents
thereof for any purpose other than in connection with the review by Tenant of the condition of the
Building (the “Business Purpose”), or (b) distribute or disclose or permit to be distributed or
disclosed any portion of the Reports or the contents thereof to any third party other than Tenant’s
directors, officers, employees, agents, attorneys, accountants, financing sources and advisors who
(i) are actively and directly participating in the evaluation of the Reports for the Business
Purpose, (ii) have a reasonable “need to know” such information, and (iii) have agreed to comply
with the terms of this Section 41.14. If Tenant is required by applicable Laws or court order to
disclose any information contained in the Reports, Tenant will give Landlord written notice of such
requirement promptly upon Tenant becoming aware of same and in any event prior to making any
disclosure pursuant thereto, and Tenant will provide such assistance in seeking a protective order
or other appropriate relief as Landlord may reasonably request. If Landlord is unable to obtain a
protective order or other remedy with respect to such disclosure, Tenant (or such other persons to
whom such disclosure request or requirement applies) will disclose or otherwise furnish only the
information legally required to be disclosed, as advised by legal counsel, and such disclosure
shall be made only to the necessary and appropriate governmental entities. Landlord shall have no
obligation to perform any remediation which may be recommended by any Reports. The provisions of
this Section shall survive the termination of this Lease with respect to any claims or liability
accruing prior to such termination.

     The terms of this Article 41 are in addition to, not replacement of, Section 1.2 of this
Lease.

     42. ROOF SPACE FOR DISH/ANTENNA.

          42.1 During the Term, Tenant shall have the right to use space on the roof of the Building
(the “Roof Space”) for the purpose of installing (in accordance with Article 6 of this Lease),
operating and maintaining for its own use a dish/antenna or other communication device reasonably
approved by the Landlord (the “Dish/Antenna”), which approval shall be given or denied within 15
days of Tenant’s request. Landlord reserves the right, at Landlord’s cost and upon reasonable
prior notice to Tenant, to relocate the Roof Space as reasonably necessary during the Term to
prevent interference with uses by Landlord or other tenants or occupants of the Project, provided
that relocation shall not unreasonably interfere with Tenant’s use of the Dish/Antenna.
Notwithstanding the foregoing, Tenant’s right to install the Dish/Antenna shall be subject to the
reasonable approval rights of Landlord and Landlord’s architect and/or engineer with respect to the
plans and specifications of the Dish/Antenna, the manner in which the Dish/Antenna is attached to
the roof of the Building and the manner in which any cables are run to and from the Dish/Antenna.
The precise specifications and a general description of the Dish/Antenna along with all documents
Landlord reasonably requires to review the installation of the Dish/Antenna (the “Plans and
Specifications”) shall be submitted to Landlord for Landlord’s written approval no later than
twenty (20) days before Tenant commences to install the Dish/Antenna. Tenant shall be solely
responsible for obtaining all necessary governmental and regulatory approvals and for the cost of
installing, operating, maintaining and removing the Dish/Antenna. Tenant shall notify Landlord
upon completion of the installation of the Dish/Antenna. If Landlord determines that the
Dish/Antenna equipment does not comply with the approved Plans and Specifications, that the
Building has been damaged

27

 

during installation of the Dish/Antenna or that the installation was defective, Landlord shall
notify Tenant of any noncompliance or detected problems and Tenant immediately shall cure the
defects. If the Tenant fails to immediately cure the defects, Tenant shall pay to Landlord upon
demand the cost, as reasonably determined by Landlord, of correcting any defects and repairing any
damage to the Building caused by such installation. If at any time Landlord, in its sole
discretion, deems it necessary, Tenant shall provide and install, at Tenant’s sole cost and
expense, appropriate aesthetic screening, reasonably satisfactory to Landlord, for the Dish/Antenna
(the “Aesthetic Screening”).

          42.2 Landlord agrees that Tenant, upon reasonable prior written notice to Landlord except in
the event of an emergency, shall have access to the roof of the Building and the Roof Space for the
purpose of installing, maintaining, repairing and removing the Dish/Antenna, the appurtenances and
the Aesthetic Screening, if any, all of which shall be performed by Tenant or Tenant’s authorized
representative or contractors, which shall be approved by Landlord, at Tenant’s sole cost and risk.
It is agreed, however, that only authorized engineers, employees or properly authorized
contractors of Tenant, FCC (defined below) inspectors, or persons under their direct supervision
will be permitted to have access to the roof of the Building and the Roof Space. Tenant further
agrees to exercise firm control over the people requiring access to the roof of the Building and
the Roof Space in order to keep to a minimum the number of people having access to the roof of the
Building and the Roof Space and the frequency of their visits. It is further understood and agreed
that the installation, maintenance, operation and removal of the Dish/Antenna, the appurtenances
and the Aesthetic Screening, if any, is not permitted to damage the Building or the roof thereof,
or interfere with the use of the Building and roof by Landlord. Tenant agrees to be responsible
for any damage caused to the roof or any other part of the Building, which may be caused by Tenant
or any Tenant Entity.

          42.3 Tenant agrees to install only equipment of types and frequencies which will not cause
unreasonable interference to Landlord or any existing dishes or antennae of other tenants or
occupants of the Project. In the event Tenant’s equipment causes such interference, Tenant will
change the frequency on which it transmits and/or receives and take any other steps necessary to
eliminate the interference. If said interference cannot be eliminated within a reasonable period
of time, in the judgment of Landlord, then Tenant agrees to remove the Dish/Antenna from the Roof
Space. Tenant shall, at its sole cost and expense, and at its sole risk, install, operate and
maintain the Dish/Antenna in a good and workmanlike manner, and in compliance with all Building,
electric, communication, and safety codes, ordinances, standards, regulations and requirements, now
in effect or hereafter promulgated, of the Federal Government, including, without limitation, the
Federal Communications Commission (the “FCC”), the Federal Aviation Administration (“FAA”) or any
successor agency of either the FCC or FAA having jurisdiction over radio or telecommunications, and
of the state, city and county in which the Building is located. Under this Lease, the Landlord and
its agents assume no responsibility for the licensing, operation and/or maintenance of Tenant’s
equipment, Tenant has the responsibility of carrying out the terms of its FCC license in all
respects. The Dish/Antenna shall be connected to Landlord’s power supply in strict compliance with
all applicable Building, electrical, fire and safety codes. Neither Landlord nor its agents shall
be liable to Tenant for any stoppages or shortages of electrical power furnished to the
Dish/Antenna or the Roof Space because of any act, omission or requirement of the public utility
serving the Building, or the act or omission of any other tenant, invitee or licensee or their
respective agents, employees or contractors, or for any other cause beyond the reasonable control
of Landlord, and Tenant shall not be entitled to any rental abatement for any such stoppage or
shortage of electrical power. Neither Landlord nor its agents shall have any responsibility or
liability for the conduct or safety of any of Tenant’s representatives, repair, maintenance and
engineering personnel while in or on any part of the Building or the Roof Space.

          42.4 The Dish/Antenna, the appurtenances and the Aesthetic Screening, if any, shall remain the
personal property of Tenant, and shall be removed by Tenant at its own expense at the expiration or
earlier termination of this Lease or Tenant’s right to possession hereunder. Tenant shall repair
any damage caused by such removal, including the patching of any holes to match, as closely as
possible, the color surrounding the area where the equipment and appurtenances were attached.
Tenant agrees to maintain all of the Tenant’s equipment placed on or about the roof or in any other
part of the Building in proper operating condition and maintain same in satisfactory condition as
to appearance and safety in Landlord’s sole discretion. Such maintenance and operation shall be
performed in a manner to avoid any interference with any other tenants or occupants of the Project
or Landlord. Tenant agrees that at all times during the Term, it will keep the roof of the
Building and the Roof Space free of all trash or waste materials produced by Tenant or Tenant’s
agents, employees or contractors.

          42.5 In light of the specialized nature of the Dish/Antenna, Tenant shall be permitted to
utilize the services of its choice for installation, operation, removal and repair of the
Dish/Antenna, the appurtenances and the Aesthetic Screening, if any, subject to the reasonable
approval of Landlord. Notwithstanding the foregoing, Tenant must provide Landlord with prior
written notice of any such installation, removal or repair and coordinate such work with Landlord
in order to avoid voiding or otherwise adversely affecting any warranties granted to Landlord with
respect to the roof. If necessary, Tenant, at

28

 

its sole cost and expense, shall retain any contractor having a then existing warranty in effect on
the roof to perform such work (to the extent that it involves the roof), or, at Tenant’s option, to
perform such work in conjunction with Tenant’s contractor. In the event the Landlord contemplates
roof repairs that could affect Tenant’s Dish/Antenna, or which may result in an interruption of the
Tenant’s telecommunication service, Landlord shall formally notify Tenant at least thirty (30) days
in advance (except in cases of an emergency) prior to the commencement of such contemplated work in
order to allow Tenant to make other arrangements for such service.

          42.6 Tenant shall not allow any provider of telecommunication, video, data or related services
(“Communication Services”) to locate any equipment on the roof of the Building or in the Roof Space
for any purpose whatsoever, nor may Tenant use the Roof Space and/or Dish/Antenna to provide
Communication Services to an unaffiliated tenant, occupant or licensee of another building, or to
facilitate the provision of Communication Services on behalf of another Communication Services
provider to an unaffiliated tenant, occupant or licensee of the Building or any other building.
Tenant specifically acknowledges and agrees that the terms and conditions of Article 10 of this
Lease shall apply with full force and effect to the Roof Space and any other portions of the roof
accessed or utilized by Tenant, its representatives, agents, employees or contractors.

          42.7 If Tenant defaults under any of the terms and conditions of this Section or this Lease,
and Tenant fails to cure said default within the time allowed by Article 18 of this Lease, Landlord
shall be permitted to exercise all remedies provided under the terms of this Lease, including
removing the Dish/Antenna, the appurtenances and the Aesthetic Screening, if any, and restoring the
Building and the Roof Space to the condition that existed prior to the installation of the
Dish/Antenna, the appurtenances and the Aesthetic Screening, if any. If Landlord removes the
Dish/Antenna, the appurtenances and the Aesthetic Screening, if any, as a result of an uncured
default, Tenant shall be liable for all costs and expenses Landlord incurs in removing the
Dish/Antenna, the appurtenances and the Aesthetic Screening, if any, and repairing any damage to
the Building, the roof of the Building and the Roof Space caused by the installation, operation or
maintenance of the Dish/Antenna, the appurtenances, and the Aesthetic Screening, if any. Tenant’s
rights pursuant to this Article 42 are not transferable.

     43. HVAC UNITS.

          43.1 Tenant, at its cost, shall be permitted to install on the roof of the Building one (1) or
more additional air-cooled stand alone package heating, ventilation and air conditioning system(s)
(the “HVAC Units”). If at any time Landlord, in its sole discretion, deems it necessary, Tenant
shall provide and install, at Tenant’s sole cost and expense, appropriate aesthetic screening,
reasonably satisfactory to Landlord, for the HVAC Units (the “Screening”). Tenant shall obtain the
advice of a structural engineer as to the placement of the HVAC Units without damaging the
Building, and shall provide a copy of such engineer’s report to Landlord and shall follow the
recommendations made in such report. The HVAC Units, its appurtenances and Screening, if any,
shall be installed in accordance with the terms of Section 6 of this Lease, including, without
limitation, the prior approval of Landlord in accordance with Section 6 of this Lease including,
without limitation, Landlord’s approval of the precise location of the HVAC Units on the roof of
the Building (such area on the roof, as designated by Landlord, being referred to herein as the
“HVAC Unit Roof Space”), the manner in which the HVAC Units is lifted to, and installed on, the
roof of the Building, and the manner in which the HVAC Units is connected to the Premises.
Landlord shall give or deny such approval within 15 days of Tenant’s request.

          43.2 Landlord agrees that Tenant, upon reasonable prior written notice to Landlord, shall have
access to the roof of the Building and the HVAC Unit Roof Space for the purpose of installing,
maintaining, repairing and removing the HVAC Units, the appurtenances and the Screening, if any,
all of which shall be performed by Tenant or Tenant’s authorized representative or contractors,
which shall be approved by Landlord, at Tenant’s sole cost and risk. It is agreed, however, that
only authorized engineers, employees or properly authorized contractors of Tenant, or persons under
their direct supervision, will be permitted to have access to the roof of the Building and the HVAC
Unit Roof Space. Tenant further agrees to exercise firm control over the people requiring access
to the roof of the Building and the HVAC Unit Roof Space in order to keep to a minimum the number
of people having access to the roof of the Building and the HVAC Unit Roof Space and the frequency
of their visits.

          43.3 Tenant shall be responsible for the cost of all electricity consumed in connection with
the operation of the HVAC Units and for the cost of installing a submeter, if required by Landlord,
to measure such electrical consumption. Landlord shall maintain the HVAC Units in accordance with
Section 7.4 hereinabove.

          43.4 The installation, maintenance, operation and removal of the HVAC Units, the appurtenances
and the Screening, if any, is not permitted to damage the Building or the roof thereof, or
interfere with the use of the Building and

29

 

roof by Landlord. Tenant agrees to be responsible for any damage caused to the roof or any other
part of the Building, which may be caused by Tenant or any of its agents or representatives.

          43.5 The HVAC Units, appurtenances, and Screening, if any, shall remain the property of Tenant
until the expiration or earlier termination of this Lease or Tenant’s right to possession of the
Premises, at which time they shall become the property of Landlord; provided, however, that
Landlord may, at Landlord’s option, require the Tenant, at Tenant’s expense, to remove the HVAC
Units, appurtenances and/or Screening and restore the affected area(s) to the condition they were
in prior to installation of such items, ordinary wear and tear excepted, including, without
limitation, the patching of any holes in the roof membrane to match, as closely as possible, the
color surrounding the area where the HVAC Units, appurtenances and Screening were attached. If
Tenant fails to remove such items and/or perform such restoration work, Landlord shall be entitled
to do so, at Tenant’s cost.

          43.6 Tenant must provide Landlord with prior written notice of any installation, removal or
repair on the roof of the Building and coordinate such work with Landlord in order to avoid voiding
or otherwise adversely affecting any warranties granted to Landlord with respect to the roof. If
necessary, Tenant, at its sole cost and expense, shall retain any contractor having a then existing
warranty in effect on the roof to perform such work (to the extent that it involves the roof), or,
at Tenant’s option, to perform such work in conjunction with Tenant’s contractor. If Landlord
contemplates roof repairs that could affect Tenant’s HVAC Units, Landlord shall formally notify
Tenant at least thirty (30) days in advance (except in cases of an emergency) prior to the
commencement of such contemplated work in order to allow Tenant to make other arrangements for such
service.

          43.7 Tenant specifically acknowledges and agrees that the terms and conditions of Article 10
of this Lease shall apply with full force and effect to the HVAC Unit Roof Space.

     44. CONFIDENTIALITY. Certain provisions of this Lease will require or give rise to the
disclosure and delivery of certain Confidential Information (as defined below) of Tenant. Landlord
and Tenant agree that the terms of this Section 44 will govern the release and protection of any
such Confidential Information disclosed.

          44.1 Confidential Information. “Confidential Information” shall mean any proprietary
or nonpublic information that Tenant expressly identifies to the Landlord as confidential, whether
such information is disclosed orally, visually or in writing. The term “Confidential Information”
also shall include all notes, analyses or other documents prepared by the Landlord or its
representatives which contain, reflect or are based upon, in whole or in part, other Confidential
Information. Confidential Information does not, however, include information that: (a) is now, or
subsequently becomes generally available to the public through no fault or breach on the part of
the Landlord; (b) Landlord can demonstrate to have had rightfully in its possession without an
obligation of confidentiality prior to disclosure to the Landlord by the Tenant; (c) Landlord
rightfully obtains from a third party who has the right to transfer or disclose it and who provides
it without a confidentiality obligation; or (d) is available to the Landlord by lawful analysis of
commercially available products.

          44.2 Nondisclosure and Non-Use. Landlord: (a) will take all reasonable precautions to
prevent any unauthorized use, disclosure, publication, or dissemination of Confidential
Information; (b) will not copy, disclose, publish, or disseminate Confidential Information to
anyone other than those of its employees or agents who need to know for a reasonable business
purpose and who are subject to a written confidentiality agreement with Landlord, whose terms are
no less stringent than those of this provision; and (c) will not use Confidential Information other
than for a business purpose associated with its role as Landlord under the Lease without the prior
written approval of the Tenant in each instance. If Landlord receives notice that it may be
required, or ordered by any judicial or governmental entity, to disclose Confidential Information,
it will take reasonably necessary steps to give Tenant sufficient prior notice to enable it to
contest such requirement or order.

          44.3 Equitable Relief. The parties acknowledge that unauthorized disclosure or use of
Confidential Information would cause irreparable harm and significant injury to the Tenant which
would be difficult to ascertain and thus Tenant will have the right to seek immediate injunctive
relief to enforce obligations under this provision, in addition to any other rights and remedies it
may have.

          44.4 Survivability. The obligations set forth in this Section 44 will survive any
termination or expiration of the Lease.

30

 

     45. LIMITATION OF LANDLORD’S LIABILITY. Redress for any claim against Landlord under this
Lease shall be limited to and enforceable only against and to the extent of Landlord’s interest in
the Building. The obligations of Landlord under this Lease are not intended to be and shall not be personally binding on, nor shall
any resort be had to the private properties of, any of its or its investment manager’s trustees,
directors, officers, partners, beneficiaries, members, stockholders, employees, or agents, and in
no case shall Landlord be liable to Tenant hereunder for any lost profits, damage to business, or
any form of special, indirect or consequential damages. The obligations of Tenant under this Lease
are not intended to be and shall not be personally binding on, nor shall any resort be had to the
private properties any of Tenant’s trustees, directors, officers, partners, beneficiaries, members,
stockholder, or employees. Except as provided in Articles 14, 19, 25 and 41 of this Lease, Tenant
shall not be liable to Landlord for any lost profits, damage to business or any form of special,
indirect or consequential damages.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

31

 

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SFERS REAL ESTATE CORP. U,	 	 	 	CYTYC SURGICAL PRODUCTS, a	 	 
	a Delaware corporation	 	 	 	California corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	RREEF Management Company, a	 	 	 	 	 	 	 	 
	 

	 	Delaware corporation	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ James H. Ida
 

	 	 
	 	By:
	 	/s/ Patrick J. Sullivan
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	James H. Ida
	 	 	 	Name:
	 	Patrick J. Sullivan	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Vice President, District Manager
	 	 	 	Title:
	 	President and CEO	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	5/27/05
	 	 	 	Dated:
	 	May 25, 2005	 	 
	 
	 	 	 	 	 	 	 	 	 	 

32

 

EXHIBIT A — FLOOR PLAN DEPICTING THE PREMISES

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

Exhibit A is intended only to show the general layout of the Premises as of the beginning of the
Term of this Lease. It does not in any way supersede any of Landlord’s rights set forth in Article
17 with respect to arrangements and/or locations of public parts of the outside areas of the
Building and changes in such arrangements and/or locations. It is not to be scaled; any
measurements or distances shown should be taken as approximate.

EXHIBIT A-1, page 1

 

 

EXHIBIT A-1 — SITE PLAN

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

Exhibit A-l is intended only to show the general layout of the Project as of the beginning of the
Term of this Lease. It does not in any way supersede any of Landlord’s rights set forth in Article
17 with respect to arrangements and/or locations of public parts of the Project and changes in such
arrangements and/or locations. It is not to be scaled; any measurements or distances shown should
be taken as approximate.

2

 

EXHIBIT B — INITIAL ALTERATIONS

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

	1.	 	Alterations and Allowance.

	 	1.1.	 	Tenant, following the delivery of the Premises by Landlord and the full and
final execution and delivery of the Lease to which this Work Letter is attached and all
prepaid rental and security deposits and insurance certificates required under such
Lease, shall have the right to perform alterations and improvements in the Premises as
shown in the Plans attached hereto as Schedule B-1 (the “Initial Alterations”).
Notwithstanding the foregoing, Tenant and its contractors shall not have the right to
perform Initial Alterations in the Premises unless and until Tenant has complied with
all of the terms and conditions of Article 6 of the Lease, including, without
limitation, approval by Landlord (which approval shall not be unreasonably withheld,
conditioned or delayed) of the final plans for the Initial Alterations and the
contractors to be retained by Tenant to perform such Initial Alterations. Tenant shall
be responsible for all elements of the design of Tenant’s plans (including, without
limitation, compliance with law, functionality of design, the structural integrity of
the design, the configuration of the premises and the placement of Tenant’s furniture,
appliances and equipment), and Landlord’s approval of Tenant’s plans shall in no event
relieve Tenant of the responsibility for such design. Landlord’s approval of the
contractors to perform the Initial Alterations shall not be unreasonably withheld,
conditioned or delayed. The parties agree that Landlord’s approval of the general
contractor to perform the Initial Alterations shall not be considered to be
unreasonably withheld if any such general contractor (i) does not have trade references
reasonably acceptable to Landlord, (ii) does not maintain insurance as required
pursuant to the terms of this Lease, (iii) does not have the ability to be bonded for
the work in an amount of no less than 150% of the total estimated cost of the Initial
Alterations, (iv) does not provide current financial statements reasonably acceptable
to Landlord, or (v) is not licensed as a contractor in the state/municipality in which
the Premises is located. Tenant acknowledges the foregoing is not intended to be an
exclusive list of the reasons why Landlord may reasonably withhold its consent to a
general contractor.
	 
	 	1.2.	 	Provided there is no Event of Default by Tenant as of the time that Tenant
submits any request for payment of any portion of the Allowance, as defined below,
Landlord agrees to contribute the sum of up to $1,673,919.00 (the “Allowance”) toward
the cost of performing the Initial Alterations in preparation of Tenant’s occupancy of
the Premises. Notwithstanding the foregoing, if Landlord declines to disburse any
portion of the Allowance based upon a default by Tenant, Tenant shall have the right to
resubmit a request for such portion of the Allowance after Tenant cures such a default,
and Landlord shall not withhold such portion of the Allowance on account of a default,
so long as the Lease is then in full force and effect and Tenant is not otherwise in
default of its obligations under the Lease. The Allowance may only be used for the
cost of preparing design and construction documents and mechanical and electrical plans
for the Initial Alterations and for hard costs in connection with the Initial
Alterations, and for the cost of the following additional items:

A       approximately 5,000 square foot Class 100,000 clean room

B.       cosmetic upgrades

C.       wiring/cabling installations

D.       interior office/conference room modifications

E.       mechanical and electrical upgrades

F.       furniture and cubicles

	 	 	 	      The Allowance, less a 10% retainage (which retainage shall be payable as part of
the final draw), shall be paid to Tenant or, at Landlord’s option, to the order of
the general contractor that performs the Initial Alterations, in periodic
disbursements within 30 days after receipt of the following documentation: (i) an
application for payment and sworn statement of contractor substantially in the form
of AIA Document G-702 covering all work for which disbursement is to be made to a
date specified therein; (ii) a certification from an AIA architect substantially in
the form of the Architect’s Certificate for Payment which is located on AIA Document
G702, Application and Certificate of Payment; (iii) Contractor’s, subcontractor’s and
material supplier’s waivers of liens which shall cover all Initial Alterations for
which disbursement is being requested and all other statements and forms required for
compliance with

B-1

 

	 	 	 	the mechanics’ lien laws of the state in which the Premises is located, together with
all such invoices, contracts, or other supporting data as Landlord or Landlord’s
Mortgagee may reasonably require; (iv) a cost breakdown for each trade or
subcontractor performing the Initial Alterations; (v) plans and specifications for
the Initial Alterations, together with a certificate from an AIA architect that such
plans and specifications comply in all material respects with all laws affecting the
Building, Property and Premises; (vi) copies of all construction contracts for the
Initial Alterations, together with copies of all change orders, if any; (vii) the
fully signed-off Building permit(s); and (viii) a request to disburse from Tenant
containing an approval by Tenant of the work done and a good faith estimate of the
cost to complete the Initial Alterations. Notwithstanding the foregoing, Landlord
shall not deduct the 10% retainage set forth above from disbursements of the
Allowance so long as (x) the Allowance is being disbursed by Landlord to Tenant (as
opposed to Tenant’s general contractor), and (y) Tenant provides evidence reasonably
satisfactory to Landlord that Tenant is deducting not less than a 10% retainage from
any amounts payable to the general contractor and any subcontractors performing the
Initial Alterations. Upon completion of the Initial Alterations, and prior to final
disbursement of the Allowance, Tenant shall furnish Landlord with: (1) general
contractor and architect’s completion affidavits, (2) full and final waivers of lien,
(3) receipted bills covering all labor and materials expended and used, (4) as-built
plans of the Initial Alterations, and (5) the certification of Tenant and its
architect that the Initial Alterations have been installed in a good and workmanlike
manner in accordance with the approved plans, and in accordance with applicable laws,
codes and ordinances. In no event shall Landlord be required to disburse the
Allowance more than one time per month. If the costs of the Initial Alterations
exceed the Allowance, Tenant shall be entitled to the Allowance in accordance with
the terms hereof, but each individual disbursement of the Allowance shall be
disbursed in the proportion that the Allowance bears to the total cost for the
Initial Alterations, less the 10% retainage referenced above. Notwithstanding
anything herein to the contrary, Landlord shall not be obligated to disburse any
portion of the Allowance during the continuance of an uncured default under the
Lease, and Landlord’s obligation to disburse shall only resume when and if such
default is cured.
	 
	 	1.3.	 	If Tenant does not submit a request for payment of the entire Allowance to
Landlord in accordance with the provisions contained in this Work Letter by April 1,
2006, any unused amount shall accrue to the sole benefit of Landlord, it being
understood that Tenant shall not be entitled to any credit, abatement or other
concession in connection therewith. Tenant shall be responsible for all applicable
state sales or use taxes, if any, payable in connection with the Initial Alterations
and/or Allowance.
	 
	 	1.4.	 	Except as expressly otherwise set forth in this Lease, Tenant agrees to accept
the Premises in its “as-is” condition and configuration, it being agreed that Landlord
shall not be required to perform any work or, except as provided above with respect to
the Allowance or below with respect to the Additional Allowance, incur any costs in
connection with the construction or demolition of any improvements in the Premises.

	2.	 	Additional Allowance Available to Tenant.

	 	2.1.	 	Provided there is no Event of Default by Tenant as of the time that Tenant
submits any request for payment of any portion of the Allowance, Landlord agrees to
contribute an amount not to exceed $309,985.00 (i.e. $5.00 per rentable square foot of
the Premises) (the “Additional Allowance”) in order to finance the Tenant’s
contribution toward the performance of the Initial Alterations, which Additional
Allowance shall be in addition to, not in lieu of the Allowance. Notwithstanding the
foregoing, if Landlord declines to disburse any portion of the Additional Allowance
based upon an Event of Default by Tenant, Tenant shall have the right to resubmit a
request for such portion of the Additional Allowance after Tenant cures such Event of
Default, and Landlord shall not withhold such portion of the Additional Allowance on
account of the Event of Default, so long as the Lease is then in full force and effect
and Tenant is not otherwise in default of its obligations under the Lease. Subject to
the foregoing, Landlord shall disburse the Additional Allowance to Tenant subject to
and in accordance with the provisions applicable to the disbursement of the original
Allowance described in this Exhibit B. In no event shall Tenant be entitled to any
disbursement of the Additional Allowance after April 1, 2005. Any Additional Allowance
paid to or on behalf of Tenant hereunder shall be repaid to Landlord as additional rent
in equal monthly installments throughout the remainder of the first five (5) years of
the initial Term, commencing on the first day of the first full calendar month
following the date the Additional Allowance is disbursed to Tenant, at an interest rate
equal to 9.5% per annum. If Tenant is in default under the Lease after the expiration
of applicable cure periods, the entire unpaid balance of the Additional Allowance paid
to or on behalf of Tenant shall become immediately due and payable and, except to the
extent required by applicable law, shall not be subject to mitigation or reduction in
connection with a reletting of the Premises by Landlord.

B-2

 

	 	2.2.	 	Upon request of Landlord, Tenant shall execute an amendment to the Lease or
other appropriate agreement, prepared by Landlord, evidencing the amount of the
Additional Allowance required by Tenant and the repayment schedule relating to Tenant’s
repayment of the Additional Allowance, as described herein. By way of example only, if
at the end of the second (2nd) month of the Term of the Lease, Landlord disburses to
Tenant (or its contractors) the sum of $100,000.00 constituting the Additional
Allowance, then beginning on the first (1st) day of the fourth (4th) month of the Term
and continuing each succeeding month of the first five (5) years of the initial Term,
Tenant shall pay to Landlord the sum of $2,169.53 as additional rent, in accordance
with the terms of Article 3 of the Lease. Anything to the contrary notwithstanding,
Tenant shall have the right at any time to prepay the Additional Allowance plus any
accrued and unpaid interest in full or in part without penalty or premium.

	3.	 	No Other Space. This Work Letter shall not be deemed applicable to any additional
space added to the Premises at any time or from time to time, whether by any options under the
Lease or otherwise, or to any portion of the original Premises or any additions to the
Premises in the event of a renewal or extension of the original Term of the Lease, whether by
any options under the Lease or otherwise, unless expressly so provided in the Lease or any
amendment or supplement to the Lease.
	 
	4.	 	Landlord Delays.

	 	4.1	 	Notwithstanding anything to the contrary set forth in the Lease, the Rent
Commencement Date shall be delayed by the number of days of delay to Substantially
Complete (as defined below) the Initial Alterations in the Premises which is caused
solely by a Landlord Delay. As used in this Section, “Landlord Delay” shall mean only
an actual delay resulting from the acts or omissions of Landlord or Landlord’s agents,
employees or contractors (and not the result of any delay caused by Tenant or caused by
strikes, acts of God, shortages of labor or materials, war, terrorist acts, civil
disturbances and other causes beyond the reasonable control of Landlord ) including,
but not limited to (a) Landlord’s failure to substantially complete installation of a
new roof for the Building as set forth in Section 2.1 on or before August 1, 2005, (b)
Landlord’s failure to approve or reasonably disapprove Tenant’s plans for the Initial
Improvements within ten (10) days following receipt thereof, and (c) Landlord’s
withholding of its consent to Tenant’s plans for the Initial Alterations on an
unreasonable basis, but shall not include any issues caused by or related to the
current condition of the Building and/or Project. The parties hereto specifically
acknowledge and agree that any delay in the completion of the Initial Alteration caused
by Landlord’s notification to Tenant or its contractor of any violation of Laws, breach
of the Building’s and Project’s rules and regulations by Tenant or failure to construct
the Initial Alterations in accordance with the approved plans shall not constitute a
Landlord Delay.
	 
	 	4.2	 	Tenant shall promptly notify Landlord in writing (a “Delay Notice”) of any
circumstances which have caused or may cause a Landlord Delay, so that Landlord may
take whatever action is appropriate to minimize or prevent such Landlord Delay. In the
event that Tenant notifies Landlord in writing of a potential Landlord Delay and
Landlord fails to cure such Landlord delay within three (3) business days after receipt
of the Delay Notice (the “Required Cure Date”), and if such actions, inaction or
circumstances otherwise qualify as a Landlord Delay pursuant to Section 4.1 above, then
a Landlord Delay shall be deemed to have occurred commencing as of the Required Cure
Date and ending as of the date Landlord cures such Landlord Delay. Notwithstanding the
foregoing, (a) Landlord shall not be responsible for any Landlord Delay with respect to
the period of time prior to the Required Cure Date, and (b) Landlord shall only be
responsible for Landlord Delays to the extent that they actually prevent Tenant from
Substantially Completing the Initial Alterations by the Rent Commencement Date.
Accordingly, the number of days of Landlord Delay shall not exceed the actual number of
days between the Rent Commencement Date and the date the Initial Alterations are
Substantially Completed.
	 
	 	4.3	 	For purposes of this Section 4, “Substantially Complete” shall mean the date
upon which all of the Initial Alterations have been performed, other than (a) any
details of construction, mechanical adjustment or any other similar matter, the
noncompletion of which does not materially interfere with Tenant’s use of the Premises,
(b) any punch list items, any furniture, fixtures, work-stations, built-in furniture or
equipment (even if the same requires installation or electrification by Tenant’s
agents), or (c) and any tenant improvement finish items and materials which are
selected by Tenant but which are not available within a reasonable time (given the
scheduled Rent Commencement Date).

B-3

 

EXHIBIT B-1 — PLANS

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

 

 

EXHIBIT C — COMMENCEMENT DATE MEMORANDUM

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

COMMENCEMENT DATE MEMORANDUM

     THIS MEMORANDUM, made as of           , 20___, by and between SFERS REAL ESTATE CORP. U, a
Delaware corporation (“Landlord”) and CYTYC SURGICAL PRODUCTS, a California corporation (“Tenant”).

Recitals:

	 	A.	 	Landlord and Tenant are parties to that certain Lease, dated for reference May
24, 2005 (the “Lease”) for certain premises (the “Premises”) consisting of
approximately 61,997 square feet at the building commonly known as 301 East Evelyn
Avenue, Mountain View, California.
	 
	 	B.	 	Tenant is in possession of the Premises and the Term of the Lease has
commenced.
	 
	 	C.	 	Landlord and Tenant desire to enter into this Memorandum confirming the
Commencement Date, the Termination Date and other matters under the Lease.

     NOW, THEREFORE, Landlord and Tenant agree as follows:

     1. The actual Commencement Date is
                    .

     2. The actual Rent Commencement Date is
                    .

     3. The actual Termination Date is
                    .

     4. The schedule of the Annual Rent and the Monthly Installment of Rent set forth on the
Reference Pages is deleted in its entirety, and the following is substituted therefor:

[insert rent schedule]

C-1

 

     5. Capitalized terms not defined herein shall have the same meaning as set forth in the Lease.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	TENANT:
	 
	 	 	 	 	 	 	 	 	 	 
	SFERS REAL ESTATE CORP. U,	 	CYTYC SURGICAL PRODCUTS, a
	a Delaware corporation	 	a California corporation
	 
	 	 	 	 	 	 	 	 	 	 
	RREEF Management Company, a Delaware corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	                    DO NOT SIGN
	 	 	 	By:
	 	                    DO NOT SIGN	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	                    DO NOT SIGN	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

C-2

 

EXHIBIT D — RULES AND REGULATIONS

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

1. Intentionally Omitted.

2. If Landlord objects in writing to any window film, curtains, blinds, shades or screens attached
to or hung in or used in connection with any window or door of the Premises or Building, Tenant
shall immediately discontinue such use. No awning shall be permitted on any part of the Premises.
Tenant shall not place anything or allow anything to be placed against or near any glass partitions
or doors or windows which may appear unsightly, in the opinion of Landlord, from outside the
Premises.

3. Tenant shall not alter any lock or other access device or install a new or additional lock or
access device or bolt on any door of its Premises without the prior written consent of Landlord,
which consent shall not be unreasonably withheld; provided, however, Tenant shall be permitted to
install door hardware that meets standard industry practice for security services as reasonably
required by Tenant. Tenant, upon the termination of its tenancy, shall deliver to Landlord the
keys or other means of access to all doors.

4. If Tenant requires telephone, data, burglar alarm or similar service, the cost of purchasing,
installing and maintaining such service shall be borne solely by Tenant (subject to Tenant’s right
to apply the Allowance and Additional Allowance towards such cost in accordance with the terms of
Exhibit B). Other than minor routine repairs and modifications in the ordinary course
which are performed in a good and workmanlike manner, no boring or cutting for wires will be
allowed without the prior written consent of Landlord, such consent not to be unreasonably
withheld, conditioned or delayed. Landlord shall direct electricians as to where and how
telephone, data, and electrical wires are to be introduced or installed. The location of burglar
alarms, telephones, call boxes or other office equipment affixed to the Premises shall be subject
to the prior written approval of Landlord, such approval not to be unreasonably withheld,
conditioned or delayed.

5. Tenant shall not place a load upon any floor of its Premises, including mezzanine area, if any,
which exceeds the load per square foot that such floor was designed to carry and that is allowed by
law. Heavy objects shall stand on such platforms as reasonably determined by Landlord to be
necessary to properly distribute the weight. Landlord will not be responsible for loss of or
damage to any such equipment or other property from any cause, and all damage done to the Building
by maintaining or moving such equipment or other property shall be repaired at the expense of
Tenant.

6. Except as expressly provided in the Lease, Tenant shall not install any radio or television
antenna, satellite dish, loudspeaker or other device on the roof or exterior walls of the Building
without Landlord’s prior written consent which consent shall be in Landlord’s sole discretion.

7. Intentionally Omitted.

8. No cooking shall be done or permitted on the Premises, except that Underwriters’ Laboratory
approved microwave ovens or equipment for brewing coffee, tea, hot chocolate and similar beverages
shall be permitted, provided that such equipment and use is in accordance with all applicable
federal, state and city laws, codes, ordinances, rules and regulations.

9. Tenant shall not bring any other vehicles of any kind into the Building other than
battery-operated handlifts that do not exceed 4,700 pounds with a load of 450 pounds. Forklifts
which operate on asphalt areas shall only use tires that do not damage the asphalt.

10. Tenant shall not use the name of the Building or any photograph or other likeness of the
Building in connection with or in promoting or advertising Tenant’s business except that Tenant may
include the Building name in Tenant’s address. Landlord shall have the right, exercisable on
reasonable advance notice and without liability to any tenant, to change the name and address of
the Building, provided that Landlord shall be responsible for Tenant’s reasonable cost of replacing
its stationery on hand, not to exceed a three (3) month supply, to reflect such change in address.

D-1

 

11. All trash and refuse stored outside the Premises shall be contained in suitable receptacles at
locations approved by Landlord. Tenant shall not place in the trash receptacles outside the
Premises any personal trash or material that cannot be disposed of in the ordinary and customary
manner of removing such trash without violation of any law or ordinance governing such disposal.

12. Tenant shall comply with all safety, fire protection and evacuation procedures and regulations
established by any governing authority.

13. Tenant assumes all responsibility for securing and protecting its Premises and its contents
including keeping doors locked and other means of entry to the Premises closed.

14. Tenant shall not use any method of heating or air conditioning other than that supplied by
Landlord without Landlord’s prior written consent.

15. Except as expressly set forth in the Lease, no person shall go on the roof without Landlord’s
permission.

16. Tenant shall not permit any animals, other than seeing-eye dogs, to be brought or kept in or
about the Premises or any common area of the property.

17. Tenant shall not permit any motor vehicles to be washed or mechanical work or maintenance of
motor vehicles to be performed on any portion of the Premises or parking lot.

18. These Rules and Regulations are in addition to, and shall not be construed to in any way modify
or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of any
premises in the Project. The rules and regulations shall be generally applicable, and generally
applied in a non-discriminatory manner to all tenants of the Project; provided, however, that
Landlord may waive any one or more of these Rules and Regulations for the benefit of any tenant or
tenants, and any such waiver by Landlord shall not be construed as a waiver of such Rules and
Regulations for any or all tenants.

19. Landlord reserves the right to make such other and reasonable rules and regulations as in its
judgment may from time to time be needed for safety and security, for care and cleanliness of the
Building’s common areas and of the Project and for the preservation of good order in and about the
Building and the Project. Tenant agrees to abide by all such rules and regulations herein stated
and any additional rules and regulations which are adopted. Tenant shall be responsible for the
observance of all of the foregoing rules by Tenant’s employees, agents, clients, customers,
invitees and guests.

20. Intentionally Omitted.

21. Tenant shall not permit smoking or carrying of lighted cigarettes or cigars in areas reasonably
designated by Landlord or any applicable governmental agencies as non-smoking areas.

22. Intentionally Omitted.

23. Canvassing, soliciting, distribution of handbills or any other written material in the Building
or Project Area is prohibited and each tenant shall cooperate to prevent the same. No tenant shall
solicit business from other tenants or permit the sale of any goods or merchandise in the Building
or Project Area without the written consent of Landlord.

24. Any equipment belonging to Tenant which causes noise or vibration that may be transmitted to
the structure of the Building or to any space therein to such a degree as to be reasonably
objectionable to Landlord.

25. Driveways, sidewalks, exits, and entrances of the Project (“Access Areas”) shall not be
obstructed by tenants or used by tenants of the Project for any purpose other than for ingress to
and egress from their respective premises. Access areas are not for the use of the general public
and Landlord shall in all cases retain the right to control and prevent access thereto by all
persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, character,
reputation and interests of the Project or its tenants.

D-2

 

26. Landlord reserves the right to designate the use of parking areas and spaces. Tenant shall not
park in visitor, reserved, or unauthorized parking areas. Tenant and Tenant’s guests shall park
between designated parking lines only and shall not park motor vehicles in those areas designated
by Landlord for loading and unloading. Vehicles in violation of the above shall be subject to
being towed at the vehicle owner’s expense. Vehicles parked overnight without prior written
consent of the Landlord shall be deemed abandoned and shall be subject to being towed at vehicle
owner’s expense. Tenant will from time to time, upon the request of Landlord, supply Landlord with
a list of license plate numbers of vehicles owned or operated by its employees or agents.
Notwithstanding the foregoing, the overnight parking of motor vehicles of employees then working in
the Premises past normal business hours and the occasional parking of motor vehicles overnight
(i.e., as a result of occasional business travel by Tenant’s employees) without Landlord’s consent
shall not constitute a violation of this rule.

27. No trucks, tractors or similar vehicles can be parked anywhere other than in Tenant’s own truck
dock area. Tractor-trailers which must be unhooked or parked with dolly wheels beyond the concrete
loading areas must use steel plates or wood blocks under the dolly wheels to prevent damage to the
asphalt paving surfaces. No parking or storing of such trailers will be permitted in the parking
areas or on streets adjacent thereto.

28. During periods of loading and unloading, Tenant shall not unreasonably interfere with traffic
flow and loading and unloading areas of other tenants of the Project. All products, materials or
goods must be stored within the Tenant’s Premises and not in any exterior areas, including, but not
limited to, exterior dock platforms, against the exterior of the Building, parking areas and
driveway areas. Tenant agrees to keep the exterior of the Premises clean and free of equipment,
wood, pallets, packing materials, barrels and any other debris produced from their operation.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

D-3

 

EXHIBIT E — FORM OF GUARANTY OF LEASE

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

GUARANTY OF LEASE

     FOR VALUE RECEIVED and in consideration for and as an inducement to SFERS REAL ESTATE CORP. U,
a Delaware corporation (“Landlord”) to lease certain real property to CYTYC SURGICAL PRODUCTS, a
California corporation, as tenant (“Tenant”), pursuant to a lease dated May 24, 2005 (the “Lease”)
by and between Landlord and Tenant, the undersigned, CYTYC CORPORATION, a Delaware corporation
(“Guarantor”) does hereby unconditionally and irrevocably guarantee to Landlord the punctual
payment of all rent and other sums due under the Lease (collectively, “Rent”) payable by Tenant
under the Lease throughout the term of the Lease and any and all renewals and extensions thereof in
accordance with and subject to the provisions of the Lease, and the full performance and observance
of all other terms, covenants, conditions and agreements therein provided to be performed and
observed by Tenant under the terms of the Lease, for which the undersigned shall be jointly and
severally liable with Tenant. If any default on the part of Tenant shall occur under the Lease,
the undersigned does hereby covenant and agree to pay to Landlord upon demand in each and every
instance such sum or sums of money and to perform each and every covenant, condition and agreement
under the Lease as Tenant is and shall become liable for or obligated to pay or perform under the
Lease, together with the costs reasonably inclined by Landlord in connection therewith, including,
without limitation, reasonable attorneys’ fees. Such payments of Rent and other sums shall be made
monthly or at such other intervals as the same shall or may become payable under the Lease,
including any accelerations thereof, all without requiring any notice from Landlord (other than any
notice required by the Lease) of such non-payment or non performance, all of which the undersigned
hereby expressly waives.

     The maintenance of any action or proceeding by Landlord to recover any sum or sums that may be
or become due under the Lease and to secure the performance of any of the other terms, covenants
and conditions of the Lease shall not preclude Landlord from thereafter instituting and maintaining
subsequent actions or proceedings for any subsequent default or defaults of Tenant under the Lease.
The undersigned does hereby consent that without affecting the liability of the undersigned under
this Guaranty and without notice to the undersigned, time may be given by Landlord to Tenant for
payment of Rent and such other sums and performance of said other terms, covenants and conditions,
or any of them, and such time extended and indulgence granted, from time to time, or Tenant may be
dispossessed or Landlord may avail itself of or exercise any or all of the rights and remedies
against Tenant provided by law or by the Lease, and may proceed either against Tenant alone or
jointly against Tenant and the undersigned or against the undersigned alone without first
prosecuting or exhausting any remedy or claim against Tenant. The undersigned does hereby further
consent to any subsequent change, modification or amendment of the Lease in any of its terms,
covenants or conditions, or in the Rent payable thereunder, or in the premises demised thereby, or
in the term thereof, and to any assignment or assignments of the Lease, and to any subletting or
sublettings of the premises demised by the Lease, and to any renewals or extensions thereof, all of
which may be made without notice to or consent of the undersigned and without in any manner
releasing or relieving the undersigned from liability under this Guaranty.

     The undersigned does hereby agree that the bankruptcy of Tenant shall have no effect on the
obligations of the undersigned hereundcr. The undersigned does hereby further agree that in
respect of any payments made by the undersigned hereunder, the undersigned shall not have any
rights based on suretyship, subrogation or otherwise to stand in the place of Landlord so as to
compete with Landlord as a creditor of Tenant, unless and until all claims of Landlord under the
Lease shall have been fully paid and satisfied.

     The undersigned hereby waives and agrees not to assert: (a) any right to require Landlord to
proceed against Tenant, or any other guarantor or person or to pursue any other security or remedy
before proceeding against the undersigned; (b) any defense based on the validity or enforceability
of any provisions of the Lease other than those to do with the payment of Rent; (c) any right or
defense that may arise by reason of the incapacity, lack of authority, death or disability of
Tenant or any other person; and (d) any right or defense arising by reason of the absence,
impairment, modification, limitation, destruction or cessation (in bankruptcy, by an election of
remedies, or otherwise) of the liability of Tenant of the

E-1

 

subrogation rights of the undersigned or of the right of the undersigned to proceed against Tenant
for reimbursement. The undersigned waives any right, statutory, or otherwise, for itself to
require or for Tenant to require Landlord to apply rents received toward the obligations of the
undersigned under this Guaranty, or to otherwise prioritize the receipt of rents as against the
obligations of the undersigned under this Guaranty. The undersigned hereby waives and agrees not
to assert (x) any right or defense based on the absence of any or all presentments, demands
(including demands for performance), notices (including notices of any adverse change in the
financial status of Tenant, notices of any other facts which increase the risk to the undersigned,
notices of non-performance and notices of acceptance of this Guaranty) and protests of each and
every kind; (y) the defense of any statute of limitations in any action under or related to this
Guaranty or the Lease to the extent the time period of such statute of limitations would be shorter
than that available to Tenant under; and (z) any right or defense based on a lack of diligence or
failure or delay by Landlord in enforcing its rights under this Guaranty or the Lease. The
undersigned hereby waives and agrees not to assert or take advantage of any right to (i)
exoneration if Landlord’s actions shall impair any security or collateral of the undersigned; (ii)
any security or collateral held by Landlord; (iii) require Landlord to proceed against or exhaust
any security or collateral before proceeding against the undersigned; and (iv) require Landlord to
pursue any right or remedy for the benefit of the undersigned. Without limiting the generality of
any of the covenants and agreements of the undersigned set forth in this Guaranty, the undersigned
hereby waives any and all benefits of the provisions of Sections 2809, 2810, 2819, 2822, 2845,
2848, 2849 and 2850 of the California Civil Code and any similar or analogous statutes of
California or any jurisdiction.

     Until all the Tenant’s obligations under the Lease are fully performed, the undersigned (a)
shall have no right of subrogation or reimbursement against the Tenant by reason of any payments or
acts of performance by the undersigned under this Guaranty, (b) subordinates any liability or
indebtedness of the Tenant now or hereafter held by the undersigned to the obligations of the
Tenant under, arising out of or related to the Lease or Tenant’s use of the Premises; provided that
so long as there is no Event of Default by Tenant under the Lease, the foregoing subordination
shall not prevent Guarantor from receiving quarterly dividends from Tenant that are generally
distributed by Tenant in the ordinary course of business; and (c) acknowledges that the actions of
Landlord may affect or eliminate any rights of subrogation or reimbursement of the undersigned as
against Tenant without any liability or recourse against Landlord.

     Neither this Guaranty nor any of the provisions hereof can be modified, waived or terminated,
except by a written instrument signed by Landlord. The provisions of this Guaranty shall apply to,
bind and inure to the benefit of the undersigned and Landlord and their respective heirs, legal
representatives, successors and assigns. As used herein, the term “Tenant” means the Tenant
specifically named in the Lease and also any assignee or subtenant of said Lease and any successor
to the interests of said Tenant, assignee or sublessee of such Lease or any part thereof, whether
by assignment, sublease or otherwise including, without limitation, any trustee in bankruptcy and
any bankruptcy estate of Tenant, Tenant’s assignee or sublessee. The undersigned, if there be more
than one, shall be jointly and severally liable hereunder, and for purposes of such several
liability the word “undersigned” wherever used herein shall be construed to refer to each of the
undersigned parties separately, all in the same manner and with the same effect as if each of them
had signed separate instruments, and this Guaranty shall not be revoked or impaired as to any of
such parties by the death of another party or by revocation or release of any obligations hereunder
of any other party.

     If Landlord should retain counsel to validly enforce this Guaranty or any covenants or
obligations hereunder (without the filing of an action), then Guarantor shall pay to Landlord, upon
demand, all reasonable attorneys’ fees, and all other costs and expenses incurred in connection
with such enforcement, in addition to all other amounts due hereunder. If either party
participates in an action against the other party arising out of or in connection with this
Guaranty or any covenants or obligations hereunder, then the prevailing party shall be entitled to
have or recover from the other party all reasonable attorneys’ fees, costs and expenses, including,
without limitation, court costs, filing fees, recording costs, and all other costs and expenses
incurred in connection therewith (all of which are referred to herein as “Enforcement Costs”), in
addition to all other amounts due hereunder. This Guaranty shall be governed by and construed in
accordance with the internal laws of the state where the premises demised by the Lease are located.
For the purpose solely of litigating any dispute under this Guaranty, the undersigned submits to
the jurisdiction of the courts of said state. The undersigned hereby waives any right to trial by
jury and further waives and agrees not to assert or take advantage of any defense based on the
claim that any arbitration decision binding upon Landlord or Tenant is not binding on the
undersigned.

E-2

 

     Any notice or other communication to be given to Landlord or the undersigned hereunder shall
be in writing and sent in accordance with the notice provisions of the Lease. Notices to Landlord
shall be delivered to Landlord’s address set forth in the Lease. Notices to the undersigned shall
be addressed as follows:

Cytyc Corporation

250 Campus Drive

Maryborough, Massachusetts 01752

Attn:                                                           

With a copy to:

Cytyc Corporation

250 Campus Drive

Marlborough, Massachusetts 01752

Attn: General Counsel

In the event Guarantor’s notice address as set forth above changes, Guarantor agrees to provide
written notice to Landlord of such change in address.

     IN WITNESS WHEREOF, the undersigned has executed this Guaranty as of the date of the Lease.

	 	 	 	 	 	 	 
	 	 	GUARANTOR:
	 
	 	 	 	 	 	 
	 	 	CYTYC CORPORATION, a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 	 	 

E-3

 

EXHIBIT F — HAZARDOUS MATERIALS QUESTIONNAIRE

attached to and made a part of Lease bearing the

Lease Reference Date of April 4, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

This questionnaire is designed to solicit information regarding Tenant’s proposed use, generation,
treatment, storage, transfer or disposal of hazardous or toxic materials, substances or wastes. If
this Questionnaire is attached to or provided in connection with a lease, the reference herein to
any such items shall include all items defined us “Hazardous Materials,” “Hazardous Substances,”
“Hazardous Wastes,” “Toxic Materials,” “Toxic Substances, “Toxic Wastes,” or such similar
definitions contained in such lease. Please complete the questionnaire and return it to Landlord
for evaluation. If your use of materials or substances, or generation of wastes is considered to
be significant, further information may be requested regarding your plans for hazardous and toxic
materials management. Submission to Landlord of this Hazardous Materials Questionnaire or
Landlord’s request for additional information shall not deemed consent by Landlord to Tenant’s use
of the materials disclosed herein. Your cooperation in this matter is appreciated. If you have
any questions, do not hesitate to call us for assistance.

	1.	 	PROPOSED TENANT
	 
	Name (Corporation, Individual, Corporate or Individual DBA, or Public Agency): CYTYC SURGICAL PRODUCTS
	 
	Standard Industrial Classification Code (SIC): 3845
	 
	Street Address: 1047 Elwell Ct.
	 
	City, State, Zip Code: Palo Alto, CA 94303
	 
	Contact Person & Title: David Duka (Facility MGR)
	 
	Telephone Number: (650) 335-2634                      Facsimile Number: (650) 335-2672
	 
	2.	 	LOCATION AND ADDRESS OF PROPOSED LEASE
	 
	Street Address: 301 East Evelyn Ave
	 
	City, State, Zip Code: Mt. View CA 94039
	 
	Bordering Streets: Whisman / Ferry Morse Way
	 
	Streets to which Premises has Access: Evelyn / Ferry Morse Way
	 
	3.	 	DESCRIPTION OF PREMISES
	 
	Floor Area: 61,997 Sq Feet
	 
	Number of Parking Spaces: Approx 248 Spaces Available for 301 E. Evelyn Tenant Use
	 
	Date of Original Construction:
                                        

	 
	Past Uses of Premises: Electronic / Computer Businesses etc.

F-1

 

Dates and Descriptions of Significant Additions, Alternations or Improvements: —Test fit to be provided Alterations would run from May / June 2005 through
April 2006

[Illegible] Additions, Alterations or Improvements, if any: (*Layout already provided)

	4.	 	DESCRIPTION OF PROPOSED PREMISES USE
	 
	 	 	Describe proposed use and operation of Premises including (i) services to be performed, (ii)
nature and types of manufacturing or assembly processes, if any, and (iii) the materials or
products to be stored at the Premises.
	 
	 	 	Finished devices will be stored, and sold to customers through
phone/fax/computer orders. Light mfg. of devices, inspection, research and
development, HR and Admin, Acctg., I.T., etc. Mfg. Eng.
	 
	 	 	Will the operation of your business at the Premises involve the use, generation, treatment,
storage, transfer or disposal of hazardous wastes or materials? Do they now?” Yes þ No o If the answer is “yes,” or if your SIC code number is between 2000 to 4000,
please complete Section V.
	 
	5.	 	PERMIT DISCLOSURE
	 
	 	 	Does or will the operation or any facet of your business at the Premises require any
permits, licenses or plan approvals from any of the following agencies?

	 	 	 	 	 
	U.S. Environmental Protection Agency
	 	Yes þ	 	No o
	City or County Sanitation District
	 	Yes o	 	No þ
	State Department of Health Services
	 	Yes o	 	No þ
	U.S. Nuclear Regulatory Commission
	 	Yes o	 	No þ
	Air Quality Management District
	 	Yes o	 	No þ
	Bureau of Alcohol, Firearms and Tobacco
	 	Yes o	 	No þ
	City or County Fire Department
	 	Yes þ	 	No o
	Regional Water Quality Control Board
	 	Yes o	 	No þ
	Other Governmental Agencies (if yes, identify:
	 	Yes o	 	No þ
	                                     
;   )
	 	 	 	 

If the answer to any of the above is “yes,” please indicate permit or license numbers,
issuing agency and expiration date or renewal date, if applicable.

F-2

 

U.S. EPA #ID CAL000188467 (Renews Yearly)

FDID # 700152 CUPA (P.A. Fire Dept Haz-Mat Regulatory Dept) 3/1/06

If your answer to any of the above is “yes,” please complete Sections VI and VII.

	6.	 	HAZARDOUS MATERIALS DISCLOSURE
	 
	 	 	Will any hazardous or toxic materials or substances be stored on the Premises? Yes þ No o If the answer is “yes,” please describe the materials or
substances to be stored, the quantities thereof and the proposed method of storage of the
same (i.e., drums, aboveground or underground storage tanks, cylinders, other), and whether
the material is a Solid (S), Liquid (L) or Gas (G):

	 
	 	

	 	 	 	 	 	 	 	 	 
	Material/	 	Quantity to be Stored	 	 	 	Amount to be Stored	 	Maximum Period of
	Substance	 	on Premises	 	Storage Method	 	on a Monthly Basis	 	Premises Storage
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 

See attached Hazardous Materials Disclosure Listing.

Attach additional sheets if necessary.

Is any modification of the Premises improvements required or planned to mitigate the release
of toxic or hazardous materials substance or wastes into the environment? Yes o
No þ If the answer is “yes,” please describe the proposed Premises
modifications:

 

 

 

	7.	 	HAZARDOUS WASTE DISCLOSURE
	 
	 	 	Will any hazardous waste, including recyclable waste, be generated by the operation of your
business at the Premises? Yes þ No o If the answer is “yes,”
please list the hazardous waste which is expected to be generated (or potentially will be
generated) at the Premises, its hazard class and volume/frequency of generation on a monthly
basis.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Maximum Period of
	Waste Name	 	Hazard Class	 	Volume/Month	 	Premises Storage
	 	 	 	 	 	 	 
	Alcohol Wipes
	 	3
	 	55 gal drum
	 	3-4 weeks
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	(some waste oil)	 	(See “HAZARDOUS MATERIALS DISCLOSURE LISTING” for types of alcohol used with the “Wipes”)

F-3

 

Attach additional sheets if necessary.

If the answer is “yes,” please also indicate if any such wastes are to be stored within the
Premises and the proposed method of storage (i.e., drums, aboveground or underground storage
tanks, cylinders, other).

	 	 	 
	Waste Name

	 	Storage
Method

	Alcohol Wipes

	 	Steel Drum
	Waste Oil

	 	Plastic container

Used/Evacuated Devices — Container (50 gallon) provided by Stericycle

Attach additional sheets if necessary.

If the answer is “yes,” please also describe the method(s) of disposal for each waste.
Indicate where disposal will take place including the methods, equipment and companies to be
used to transport the waste:

Disposal by CSP contract w/Romic Environmental Inc.

They pick up waste matl’s monthly.

We are their customer #44458100

Is any treatment or processing of hazardous wastes to be conducted at the Premises? Yes
o No þ If the answer is “yes,” please describe proposed
treatment/processing methods:

 

 

 

Which agencies are responsible for monitoring and evaluating compliance with respect to the
storage and disposal of hazardous materials or wastes at or from the Premises? (Please list
all agencies):

Romic Environmental

Stericycle Inc.

Fire Department CUPA Program

F-4

 

Have there been any agency enforcement actions regarding Tenant (or any affiliate thereof),
or any existing Tenant’s (or any affiliate’s) facilities, or any past, pending or
outstanding administrative orders or consent decrees with respect to Tenant or any affiliate
thereof? Yes o No þ If the answer is “yes,” have there been any
continuing compliance obligations imposed on Tenant or its affiliates as a result of the
decrees or orders? Yes o No o If the answer is “yes,” please
describe:

 

 

 

Has Tenant or any of its affiliates been the recipient of requests for information, notice
and demand letters, cleanup and abatement orders, or cease and desist orders or other
administrative inquiries? Yes o No. þ If the answer is “yes,”
please describe:

 

 

 

Are there any pending citizen lawsuits, or have any notices of violations been provided to
Tenant or its affiliates or with respect to any existing facilities pursuant to the citizens
suit provisions of any statute? Yes o No þ If the answer is
“yes,” please describe:

 

 

 

Have there been any previous lawsuits against the company regarding environmental concerns?
Yes o No þ If the answer is “yes,” please describe how these
lawsuits were resolved:

 

 

 

Has an environmental audit ever been conducted at any of your company’s existing facilities?
Yes o No. þ If the answer is “yes,” please describe:

 

F-5

 

 

 

Does your company carry environmental impairment insurance? Yes þ No o If the answer is
“yes,” what is the name of the carrier and what are the effective
periods and monetary limits of such coverage?

Chubb Insurance — April 10, 2005 — Aug. 1, 2008

($ Limits are being verified 5/5/05)

/s/ David Duka

	8.	 	EQUIPMENT LOCATED OR TO BE LOCATED AT THE PREMISES
	 
	 	 	Is (or will there be) any electrical transformer or other equipment containing
polychlorinated biphenyls located at the Premises? Yes o No o
If the answer is “yes,” please specify the size, number and location (or proposed location):

	 
	

 

Not that I am aware of

 

 

 

Is (or will there be) any tank for storage of a petroleum product located at the Premises?
Yes o No þ If the answer is “yes,” please specify capacity and
contents of tank; permits, licenses and/or approvals received or to be received therefor and
any spill prevention control or conformance plan to be taken in connection therewith:

 

 

 

	9.	 	ONGOING ACTIVITIES (APPLICABLE TO TENANTS IN POSSESSION)

F-6

 

	 	 	Has any hazardous material, substance or waste spilled, leaked, discharged, leached, escaped
or otherwise been released into the environment at the Premises? Yes o No. þ If the answer is “yes,” please describe including (i) the date and duration
of each such release, (ii) the material, substance or waste released, (iii) the extent of
the spread of such release into or onto the air, soil and/or water, (iv) any action to clean
up the release, (v) any reports or notifications made of filed with any federal, state, or
local agency, or any quasi-governmental agency (please provide copies of such reports or
notifications) and (vi) describe any legal, administrative or other action taken by any of
the foregoing agencies or by any other person as a result of the release:
	 
	 	 	 

	 
	 	 	 

	 
	 	 	 

This Hazardous Materials Questionnaire is certified as being true and accurate and has been
completed by the party whose signature appears below on behalf of Tenant as of the date set forth
below. (TO THE BEST OF MY KNOWLEDGE)

DATED: 5/5/05

	 	 	 	 	 
	 	 	 
	 	Signature: 	/s/ David Duka
 	 
	 	Name:  	David Duka 	 
	 	Title:  	Facility Manager 	 

F-7

 

	 	 	 	 	 

					
	 	 	 	 	 
	HAZARDOUS MATERIALS DISCLOSURE (CYTYC Surgical Products)
	 	Date: May 5, 2005
	 	(page 1 of 2 )

*Addendum
to “Exhibit F” Hazardous Materials Questionnaire

	 	 	 
	(L)= LIQUID (G)= GAS (S)= SOLIDS
	 	Updated by (name): D. Duka

	 	 	 	 	 	 	 	 	 
	Material/Substance	 	Qty. to be Stored	 	Storage Method	 	Amt. Stored Monthly	 	Max. Period Storage
	(L) Ethyl Alcohol

	 	15 - 20 Ga.
	 	Chem. Fire Cabinet
	 	20 Ga. Rotate w/new inventory
	 	60-90 days
	(L) Alcohol 70% Isopropyl

	 	16 Ga.
	 	Chem. Fire Cabinet
	 	20 Ga. Rotate w/new
	 	60-90 days
	(L) 100% Alcohol (2-propanol)

	 	12 Ga.
	 	Chem. Fire Cabinet
	 	20 Ga. Rotate w/new
	 	60-90 days
	(L) Acetone

	 	2 Qt.
	 	Chem. Fire Cabinet
	 	2 Qt.
	 	± (1 year) or until expiration
	(L) Solder Flux-Water soluble

	 	3 Ga.
	 	Chem. Fire Cabinet
	 	4 Ga.
	 	± (1 year) or until expiration
	(L) Solder flux-Low residue

	 	9 Ga.
	 	Chem. Fire Cabinet
	 	12 Ga.
	 	± (1 year) or until expiration
	(L) Silvertex T-46 Oil

	 	5 Ga.
	 	Metal containment w/pump
	 	10 Ga.
	 	6 months then rotate new
	(L) Staycoat 1150 Oil

	 	10 Ga.
	 	Metal Cabinet
	 	10 Ga.
	 	60 - 120 days
	(L) Cidex disinfectant solution

	 	4 Ga.
	 	Fire Cabinet Chem
	 	5 Ga.
	 	60 - 150 days
	(L) Sporicidin Disinfencant

	 	4 Ga.
	 	Metal Fire Cabinet
	 	5 Ga.
	 	60  - 150 days
	(L) Liquinox cleaning detergent liquid

	 	7 Ga.
	 	Metal Cabinet
	 	10 Ga.
	 	60 - 150 days
	(L) Zepamine a disinfectant sanitizer

	 	2 Ga.
	 	Metal Cabinet
	 	4 Ga.
	 	60 - 150 days
	(L) Zepatiack a disinfectant
sanitizer

	 	3 Ga.
	 	Metal Cabinet
	 	4 Ga.
	 	60 - 150 days
	(L) Clorox bleach

	 	4 Ga.
	 	Metal Cabinet
	 	5 Ga.
	 	60 - 150 days
	(L) Foam hand wash Alcohol

	 	24 (5oz cans)
	 	Metal Cabinet
	 	24 (5 oz cans)
	 	(1 year) or until expiration
	(L) Electrolyte MSC 8

	 	2 Qt.
	 	Fire-Chem Cabinet
	 	2 Qt
	 	(1 year) or until expiration
	(L) APC cleaner

	 	1 Qt.
	 	Fire-Chem Cabinet
	 	2 Qt.
	 	(1 year) or until expiration

 

					
	 	 	 	 	 
	HAZARDOUS MATERIALS DISCLOSURE (CYTYC Surgical Products)
	 	Date: May 5, 2005
	 	(page 2 of 2 )

*Addendum
to “Exhibit F” Hazardous Materials Questionnaire

	 	 	 
	(L)= LIQUID (G)= GAS (S)= SOLIDS
	 	Updated by (name): D. Duka

	 	 	 	 	 	 	 	 	 
	Material/Substance	 	Qty. to be Stored	 	Storage Method	 	Amt. Stored Monthly	 	Max. Period Storage
	(L) Loctite 3011 Adhesive

	 	1 Liter
	 	Fire-Chem Cabinet
	 	1 Liter
	 	(1 yr) or until expire
	(L) Loctite 3051 Adhesive

	 	1 Liter
	 	Fire-Chem Cabinet
	 	1 Liter
	 	(1 yr) or until expire
	(L) Loctite 3491 Adhesive

	 	2 Liters
	 	Fire-Chem Cabinet
	 	2 Liters
	 	(1 yr) or until expire
	(L) Loctite 7649 Adhesive

	 	2 oz.
	 	Fire-Chem Cabinet
	 	6 oz.
	 	(1 yr) or until expire
	(L) Loctite 4014 Adhesive

	 	9 bottles (6 oz)
	 	Refrigerator in CER
	 	54 - 72 oz (9-12 bottles)
	 	(1 yr) or until expire
	(L) Loctite 4013 Adhesive

	 	6 bottles (6 oz)
	 	Refrigerator in CER
	 	54 - 72 oz (9-12 bottles)
	 	(1 yr) or until expire
	(L) Med 361 Silicone fluid

	 	57 Grams
	 	Fire-Chem Cabinet
	 	57 grams
	 	(1 yr) or until expire
	(L) Cutting oil/tap fluid

	 	1 Pint
	 	Machine Shop
	 	1 Pint
	 	(1 yr) or until expire
	(L) Weld on 2354 solvent
cement

	 	1 Pint
	 	Fire-Chem Cabinet
	 	1 Pint
	 	(1 yr) or until expire
	(L) EPO-Tek Epoxy 353ND

	 	1/2 Pint
	 	Fire-Chem Cabinet
	 	1/2 Pint
	 	(1 yr) or until expire
	(G) CO2 Cylinders

	 	16 gram x 40,000
	 	Cabinet
	 	<10,000 Cylinders
	 	8 - 10 Months

 

EXHIBIT G — FORM OF SUBORDINATION, NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

attached to and made a part of Lease bearing the

Lease Reference Date of May 24, 2005 between

SFERS REAL ESTATE CORP. U, a Delaware corporation, as Landlord, and

CYTYC SURGICAL PRODUCTS, a California corporation, as Tenant

This SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (“Agreement”) is entered into as of
this ___day of May, 2005, by and among CYTYC SURGICAL PRODUCTS, A CALIFORNIA CORPORATION
(“Tenant”), SUMITOMO MITSUI BANKING CORPORATION (“Agent”) and SFERS REAL ESTATE CORP. U
(“Landlord”).

A. Pursuant to a lease dated April ___, 2005 (the “Lease”) between Landlord and Tenant, Tenant is a
tenant of a certain building (the “Building”) on that certain real property described on Exhibit A
annexed hereto located in Mountain View, State of California (the “Land”). Borrower’s interest in
the Building and the Land shall be referred to herein as “Property”). The Property is part of a
larger complex (“Complex”) known as the Mountain View Corporate Center.

B. Agent is Administrative Agent on behalf of Lenders party to a Credit Agreement dated as
of___(the “Credit Agreement”) with respect to, among other things, making a Loan to Landlord
in the amount of $28,000,000.00 with interest thereon, evidenced by a certain Promissory Note
secured by, among other things, a Mortgage, Assignment of Leases and Security Agreement (the
“Mortgage”) constituting a valid lien upon the Property, and secured by an Assignment of Landlord’s
interest in the Lease as more particularly set forth in a certain Assignment of Leases and Rents.

C. As a condition precedent to obtaining the Loan, Agent has required that Landlord and Tenant make
certain agreements with Agent with respect to the Lease for the benefit of the Lenders party to the
Credit Agreement.

NOW, THEREFORE, in consideration of the foregoing facts and mutual covenants contained herein, the
parties hereto do hereby agree as follows:

1. Assignment. Tenant hereby acknowledges and agrees that it has notice that the Lease and the
rent and all other sums due thereunder have been assigned or are to be assigned to Agent as
security for the obligations secured by the Mortgage and consents to such assignment. In the event
Agent gives written notice to Tenant of the occurrence of an Event of Default under the Mortgage
and demands that Tenant pay its sums due under the Lease directly to Agent, Tenant shall honor such
demand and pay such sums due under the Lease directly to Agent or as otherwise directed pursuant to
such notice. In complying with these provisions, Tenant shall be entitled to rely solely upon the
notices given by Agent and Landlord hereby permits said direct payments to be made and further
agrees to indemnify and hold Tenant harmless from and against any and all loss, claim, damage or
liability arising out of Tenants compliance with such notice. Tenant shall be entitled to full
credit under the Lease for any rents paid to Agent in accordance with the provisions of this
Paragraph to the same extent as if such rents were paid directly to Landlord.

2. Subordination. Subject to the terms hereof and by its execution hereof Tenant acknowledges that
the Mortgage in favor of Agent, and any renewals, modifications, consolidations, replacements and
extensions thereof shall remain a lien on the Property until such time when fully paid or otherwise
disposed of pursuant to the terms thereof prior and superior to the Lease (including specifically,
without limitation, any option to purchase or rights of first refusal affecting the Property, or
any portion thereof contained therein), the leasehold estate created thereby and Tenant’s right,
title and interest in the Property as if the Mortgage had been executed, delivered and duly
recorded in the appropriate land records prior to the execution and delivery of the Lease.

3. Attornment. If the interest of Landlord in the Property and under the Lease shall be acquired
by Agent by reason of foreclosure of the Mortgage or any other act or proceeding(s) made or brought
to enforce the rights of the Agent, including, but not limited to, by deed in lieu of foreclosure
or as a result of any other means, then the Lease and all terms therein, and the rights of Tenant
thereunder, shall continue in full force and effect and shall not be altered, terminated, or
disturbed, except in accordance with the terms of the Lease, and Tenant shall be bound to Agent and
Agent shall be bound to Tenant, subject to the terms hereof under all of the terms, covenants and
conditions of the Lease for the balance of the terms, and any renewals thereof with the same force
and effect as if the Agent were the Landlord under the Lease. In the event Agent acquires

G-1

 

the interest of Landlord, Tenant hereby agrees to attorn to Agent as his landlord, said attornment
to be effective and self-operative without the execution of any other instruments on the part of
either party hereto, immediately upon Agent succeeding to the interest of Landlord under the Lease
with written notice of same being delivered to Tenant. Upon receipt by Tenant of said written
notice from Agent that Agent has succeeded to the interest of Landlord under the Lease, Tenant will
make all payments of monetary obligations due by Tenant under the Lease at the address provided by
Agent in the notice. Tenant agrees, however, upon the election of and written demand by Agent
within sixty (60) days after Agent receives title to Property, to execute an instrument in
confirmation of the foregoing provisions, satisfactory to Agent and Tenant, in which Tenant shall
acknowledge this agreement to attorn which shall set forth the terms and conditions hereof and
shall not be deemed or construed, in any way, as expanding or modifying Tenant’s obligations as
tenant under the Lease, except where specifically set forth herein.

4. Nondisturbance. If it becomes necessary to foreclose the Mortgage, Mortgagee will not terminate
the Lease nor join Tenant in summary or foreclosure proceedings so long as Tenant is not in default
under any of the terms, covenants or conditions of said Lease beyond applicable grace periods after
notice thereof or if in default, the same shall be cured. If Agent shall succeed to the interests
of Landlord under the Lease, Agent shall be bound to the Tenant under all of the terms, covenant
and conditions of the Lease, and Agent agrees to recognize Tenant and further agrees that Tenant
shall not be disturbed in its possession or use, of the Property, said nondisturbance to be
effective and self-operative without the execution of any other instrument(s) on the part of either
party hereto, immediately upon Agent succeeding to the interest of Landlord under the Lease, of the
Property for any reason other than one which would entitle Landlord to terminate the lease under
its terms or would cause, without any further action by Landlord, the termination of the Lease or
would entitle Landlord to dispossess Tenant from the Property. Tenant shall, from and after
Agent’s succession to the interests of Landlord under the Lease, have the same remedies against
Agent for the breach of any provision contained in the Lease that Tenant might have had under the
Lease against Landlord if Agent had not succeeded to the interests of Landlord under the Lease,
provided further, however, that Agent except as expressly set forth in the Lease shall not be:

     (a) personally liable for any acts or omissions of any prior landlord (including, but not
limited to, Landlord); or

     (b) subject to any offsets or defenses which Tenant may have against any prior landlord
(including, but not limited to, Landlord); or

     (c) liable for any consequential damages attributable to any acts or omissions of any prior
landlord (including, but not limited to, Landlord); or

     (d) obligated to give Tenant a credit for or acknowledge any rent or any other sums not
delivered to Agent which Tenant has paid to Landlord in excess of the rent due under the Lease at
the time Agent gave Tenant notice of its succession to the Landlord’s interest; provided however,
that Mortgagee shall be bound by any estimated monthly payments on account of additional rent which
Tenant is required to pay to any holder of Landlord’s interest under the Lease in accordance with
the provisions of the Lease; or

     (e) liable for the repayment of any monies paid by Tenant under the Lease except that Agent as
a successor to Landlord shall be liable for the repayment of a security deposit if payable to
Tenant and Landlord fails to pay even if Agent as successor to Landlord has not received the
security deposit; or

     (f) obligated to commence or complete any construction or contribute toward construction or
installation of any improvements required under the Lease, or expand or rehabilitate existing
improvements thereon, or restore improvements following any casualty not required to be insured
under the Lease or pay the costs of any restoration in excess of the proceeds recovered under any
insurance required to be carried under the Lease, provided however that: (i) Agent shall cause to
be applied to restoration required under the Lease all proceeds of casualty insurance received by
or under the control of Agent and (ii) nothing herein shall relieve agent from its obligation to
fund the balance of Allowance or the Additional Allowance, to the extent that the same have not
been fully funded by the Landlord prior to the time that Agent succeeds Landlord as the holder of
Landlord’s interest under the Lease; or

     (g) liable for any damages or other relief attributable to any latent or patent defects in
construction; or

     (h) liable for any costs or expenses related to any indemnification provided by any prior
landlord (including, but not limited to, Landlord) with respect to the presence or clean-up of any
hazardous substances or materials in, on, under or about the leased premises; or

G-2

 

     (i) obligated to enforce any restriction on competition beyond the Building or Property; or

     (j) bound by any amendment or modification of the Lease made without its consent and
knowledge, which consent shall not be unreasonably withheld, and which consent shall not be
required with respect to amendments which ratify the exercise by Tenant of its rights under the
Lease (e.g. the exercise of Tenant’s renewal option).

Additionally, in such event, Tenant shall be bound to Agent, and Agent shall be bound to Tenant,
subject to the terms hereof under all of the terms, covenants and conditions of the Lease, and
Agent and Tenant shall, from and after Agent’s succession to the interest of Landlord under the
Lease, have the same remedies against each other for the breach of any provision contained in the
Lease that they might have had under the Lease against each other if Agent were the original
Landlord under the Lease.

4A. Nothing herein shall relieve Mortgagee of its obligations as party-landlord arising from and
after the Succession Date (defined below). Without limiting the foregoing, nothing herein shall
relieve Mortgagee of its obligations to perform any maintenance or repairs which are required to be
performed by the holder of Landlord’s interest under the Lease based upon the fact that the need
for such maintenance or repairs first arose prior to the Succession Date.

5. Limitations on Liability. Neither this Agreement, the Assignment, nor anything to the contrary
in the Lease shall, prior to the date (“Succession Date”) which is the earlier to occur of: (i) the
date that Mortgagee first takes title to the Property, or (ii) the date that Mortgagee first takes
possession of the Property, operate to give rise to or create any responsibility or liability for
the control, care, management or repair of the Property upon Agent, or impose responsibility for
the carrying out by Agent of any of the covenants, terms and conditions of the Lease, or constitute
Agent a “mortgagee in possession,” nor shall said instrument operate to make Agent responsible or
liable for any waste committed on the Property by any person whatsoever, or for any dangerous or
defective condition of the Property, or for any negligence in the management, upkeep, repair or
control of the Property resulting in loss, injury or death to any tenant, licensee, invoice, guest,
employee, agent or stranger unless Agent becomes Landlord. In the event Agent becomes substitute
landlord, Agent may assign its interest as substitute landlord without notice to, the consent of or
the assumption of any liability to any other party hereto, so long as Landlord’s obligations under
the Lease and this Agreement, are fully assumed by said Assignee, who shall be deemed by Agent to
be a commercially reasonable Assignee, provided however that Agent as successor Landlord shall be
responsible for the performance of continuing obligations of Landlord existing after such
acquisition.

Anything herein or in the Lease to the contrary notwithstanding, in the event that Agent shall
acquire title to the leased premises, Agent shall have no obligation, nor incur any liability
beyond the then-existing interest, if any, of Agent in the Complex and Tenant shall look
exclusively to such interest of Agent in the Complex for the payment and discharge of any
obligations imposed upon Agent hereunder or under the Lease, and Agent is hereby released and
relieved of any other liability hereunder and under the Lease. As regards Agent, Tenant shall look
solely to the estate or interest owned by Agent in the Complex and Tenant will not collect or
attempt to collect any judgment out of any other assets of Agent. By executing this Agreement,
Landlord specifically acknowledges and agrees that nothing contained in this Section shall impair,
limit, affect, lessen, abrogate or otherwise modify the obligations of Landlord to Tenant under the
Lease. Agent’s interest (as such term is used herein) in the leased premises shall include Agent’s
equity in the Complex, rents, protests and issues from the leased premises and proceeds from
casualty or condemnation affecting the Complex.

6. Warranties and Representations. Tenant hereby warrants, represents, covenants and agrees to and
with Agent:

     (a) not to alter or modify the Lease except as provided in Section 4(j) hereof, or cancel,
terminate or surrender Lease, except as provided therein or herein;

     (b) after the date hereof (except as otherwise expressly provided in the Lease), not to enter
into any agreement with Landlord, its successors or assigns, which grants any concession with
respect to the Lease or which reduces the rent called for thereunder without the express written
consent of Agent;

     (c) after the date hereof (except as otherwise expressly provided in the Lease), not to create
any offset or claims against rents, or prepay rent more than thirty (30) days in advance;

     (d) that Tenant is now lessee of the leasehold estate created by the Lease and shall not
hereafter assign the Lease except as permitted by the terms of the Lease;

G-3

 

     (e) to promptly certify in writing to Agent, in connection with any proposed assignment of the
Mortgage, whether or not, to the knowledge of Tenant, any default on the part of Landlord is
claimed to exist under the Lease, and what any such claimed default factually involves; and

     (f) not to voluntarily subordinate the Lease to any other lien or encumbrance without Agent’s
prior written consent (except as otherwise expressly provided in the Lease).

7. No Waiver. Notwithstanding any other provision of this Agreement, where Agent acquires
Landlord’s interest in and possession of the Premises and a Landlord default has occurred and is
continuing, Tenant shall not be considered as having waived its rights to require that Agent remedy
such default it the Landlord default continues after the Succession Date. In that case, Agent
shall have no liability for Landlord’s default as it applies to the period before the Succession
Date, but shall be liable for any failure to cure such continuing default thereafter, provided only
that Agent receives the benefit of any notice and cure period required by the Lease or hereunder.
Without limiting the foregoing, nothing herein shall relieve Agent of its obligation to perform any
maintenance or repairs required to be performed by Landlord after the Succession Date based upon
the fact that the need for such maintenance or repairs first arose prior to the Succession Date.

8. Governing Law. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of California.

9. Notice and Cure. In the event that Landlord shall default in the performance or observance of
any of the terms, conditions or agreement in the Lease, Tenant shall give written notice thereof to
Agent and Agent shall have the right but not the obligation) to cure such default. Tenant further
agrees that if Landlord shall have failed to cure such default within the time provided for in the
Lease, then the Agent, provided such is not a failure to provide Essential Services or access to
the Premises for which Tenant may exercise self-help, shall have an additional thirty (30) days
within which to cure such default or if such default cannot be cured within that time, then such
additional time as may be necessary to cure such default shall be granted if within such thirty
(30) days Agent has commenced and is diligently pursuing the remedies necessary to cure such
default (including, but not limited to, commencement of foreclosure proceedings, if necessary to
effect such cure), in which event the Lease shall not be terminated while such remedies are being
so diligently pursued. Specifically preserved hereby are any rights Tenant may have to cure in the
event of an emergency, or otherwise, and to set-off and deduct the cost of same from rent, as may
be provided in the Lease; provided prior written notice of the exercise of such rights is delivered
to Agent, and it is expressly understood by Leader that Agent’s permission is not, in any way,
required.

10. Binding Effect; Definitions. The provisions of this Agreement shall be covenants running with
the Property, and shall be binding upon and inure to the benefit of the respective parties hereto
and their respective heirs, legatees, executors, administrators, beneficiaries, successors and
assigns, including without limitation (a) any person who shall obtain, directly or by assignment or
conveyance, any interest in the Mortgage, (b) any transferee; or (c) any person who shall obtain
any interest in the Property, whether through foreclosure or otherwise. Furthermore, the
provisions of this Agreement shall be binding upon any guarantor of Tenants obligations under the
Lease. As used herein the term “Tenant” shall include Tenant, its successors and assigns; the
words “foreclosures and “foreclosure sale” as used herein shall be deemed to include the
acquisition of Landlord’s estate in the Property by voluntary deed (or assignment) in lieu of
foreclosure; and the word “Agent” shall include Agent herein specifically named in its capacity as
Administrative Agent under the Credit Agreement and any successor Administrative Agent thereunder,
and anyone who shall have succeeded to Landlord’s interest in the Property by, through or under
foreclosure of the Mortgage.

11. Entire Agreement. This Agreement shall be the whole and only agreement between the parties
hereto with regard to the subordination of the Lease and leasehold interest of Tenant to the
Mortgage in favor of Agent, and, with respect to Agent and Tenant only, shall supersede and cancel
any prior agreements as to such, or any, subordination, including, but not limited to, those
provisions, if any, contained in the Lease, which provide for the subordination of the lease and
leasehold interest of Tenant to a deed or deeds of trust or to a mortgage or mortgages to be
thereafter executed, and shall not be modified or amended except writing signed by all parties
hereto.

12. Consideration. Tenant declares, agrees and acknowledges that it intentionally and
unconditionally waives, relinquishes and subordinates the Lease and leasehold interest in favor of
the lien of the Mortgage above mentioned to the extent set forth in this Agreement, and, in
consideration of this waiver, relinquishment and subordination, specific loans and advances are
being and will be made and, as part and parcel thereof specific monetary and other obligations are
being and will be entered into which would not be made or entered into but for said reliance upon
this waiver, relinquishment and subordination.

G-4

 

13. Invalidity or Unenforceability. If any term, covenants or condition of this Agreement other
than the effectiveness of the non-disturbance intention is held to be invalid, illegal or
unenforceable in any respect, this Agreement shall be construed without such provision.

14. Number and Gender. The use of the neuter gender in this Agreement shall be deemed to include
any other gender, and, words in the singular number shall be held to include the plural, when the
sense requires.

15. Notice. Any notice required or allowed by this Agreement shall be in writing and shall be (i)
hand-delivered, effective upon receipt, or (ii) sent by United States Express Mail or by private
overnight courier, effective upon receipt, or (iii) served by certified mail, postage prepaid,
return receipt requested, deemed effective on the day of actual delivery as shown by the
addressee’s return receipt or the expiration of three (3) business days after the date of mailing,
whichever is the earlier in time; addressed to the party intended to receive the same at the
address set forth below:

If to Tenant:

Cytyc Surgical Products

301 East Evelyn Avenue

Mountain View, California

with a copy to:

c/o Cytyc Corporation

250 Campus Drive

Marlborough, Massachusetts 01752

Attn: General Counsel

If to Landlord:

SFERS Real Estate Corp. U

1310 Tully Road, Suite 110

San Jose, California 95122

If to Agent:

G-5

 

The parties may, by written notice to the others, designate a different mailing address for notices

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

	 	 	 	 	 	 	 	 	 
	LENDER:	 	 	 	SUMITOMO MITSUI BANKING CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	     Its:	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	     Its:	 	 
	 
	 	 	 	 	 	 	 	 
	Tenant:	 	 	 	CYTYC SURGICAL PRODUCTS, A CALIFORNIA CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	     Its:	 	 
	 
	 	 	 	 	 	 	 	 
	Landlord:	 	 	 	SFERS REAL ESTATE CORP. U

By RREEF MANAGEMENT COMPANY, A DELAWARE CORPORATION,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	     Its agent	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	     Its:	 	 

STATE OF CALIFORNIA

					
	 	 	 	 	 
	     , ss
	 	 
	 	May ___, 2005

               Then personally appeared the
above-named ___, ___of
SUMITOMO MITSUI BANKING
CORPORATION, and acknowledged the
foregoing instrument to be the free
act and deed of such corporation,
before me.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Notary Public
	 	 
	 

	 	    My commission expires:	 	 

STATE OF CALIFORNIA

					
	 	 	 	 	 
	     , ss
	 	 
	 	May ___, 2005

               Then personally appeared the
above-named ___, ___of
CYTYC SURGICAL PRODUCTS, A
CALIFORNIA CORPORATION and
acknowledged the foregoing
instrument to be the free act and
deed of said corporation, before
me.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Notary Public
	 	 
	 

	 	    My commission expires:	 	 

G-6

 

STATE OF CALIFORNIA

					
	 	 	 	 	 
	     , ss
	 	 
	 	May ___, 2005

               Then personally appeared the
above-named ___, ___of
SFERS REAL ESTATE CORP. U, and
acknowledged the foregoing
instrument to be the free act and
deed of said corporation, before
me.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Notary Public
	 	 
	 

	 	    My commission expires:	 	 

G-7

 

LANDLORD CONSENT TO SUBLEASE

     THIS LANDLORD CONSENT TO SUBLEASE (“Consent Agreement”) is entered into as of May 14, 2007, by
and among SFERS REAL ESTATE CORP. U, a Delaware corporation (“Landlord”), CYTYC SURGICAL PRODUCTS,
a California corporation (“Sublandlord”), and CONCENTRIC MEDICAL, INC., a Delaware corporation
(“Subtenant”).

RECITALS:

     A.     Landlord, as landlord, and Sublandlord, as tenant, are parties to that certain lease
agreement dated as of May 24, 2005 (as the same may have been amended, the “Lease”) pursuant to
which Landlord has leased to Sublandlord certain premises containing approximately 61,997 rentable
square feet (the “Premises”) of the building located at 301 East Evelyn Avenue, Mountain View,
California (the “Building”). The Building is a part of the project commonly known as Mountain View
Corporate Center.

     B.     Sublandlord and Subtenant have entered into (or are about to enter into) that certain
sublease agreement dated as of April 19, 2007, attached hereto as Exhibit A (the “Sublease”)
pursuant to which Sublandlord has agreed to sublease to Subtenant the entire premises leased by
Sublandlord (the “Sublet Premises”).

     C.     Sublandlord and Subtenant have requested Landlord’s consent to the Sublease.

     D.     Landlord has agreed to give such consent upon the terms and conditions contained in this
Consent Agreement.

     NOW THEREFORE, in consideration of the foregoing preambles which by this reference are
incorporated herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Landlord hereby consents to the Sublease subject to the following terms
and conditions, all of which are hereby acknowledged and agreed to by Sublandlord and Subtenant:

     1.     Sublease Agreement. Sublandlord and Subtenant hereby represent that a true and
complete copy of the Sublease is attached hereto and made a part hereof as Exhibit A, and
Sublandlord and Subtenant agree that the Sublease with respect to Landlord and/or the Sublet
Premises shall not be modified without Landlord’s prior written consent, which consent shall not be
unreasonably withheld.

     2.     Representations. Sublandlord hereby represents and warrants that Sublandlord (i)
has full power and authority to sublease the Sublet Premises to Subtenant (subject to any consents
required in the Lease), (ii) has not transferred or conveyed its interest in the Lease to any
person or entity collaterally or otherwise, and (iii) has full power and authority to enter into
the Sublease and this Consent Agreement. Subtenant hereby represents and warrants that Subtenant
has full power and authority to enter into the Sublease and this Consent Agreement.

 

 

     3.     Indemnity and Insurance. Subtenant hereby assumes, with respect to Landlord, all
of the indemnity and insurance obligations of the Sublandlord under the Lease with respect to the
Sublet Premises (with references therein to “Tenant” to be deemed to refer to “Subtenant”),
provided that the foregoing shall not be construed as relieving or releasing Sublandlord from any
such obligations. Notwithstanding the foregoing, to the extent the same is legally permissible,
Sublandlord may satisfy such insurance obligation for itself and on behalf of Subtenant.

     4.     No Release. Nothing contained in the Sublease or this Consent Agreement shall be
construed as relieving or releasing Sublandlord from any of its obligations under the Lease, it
being expressly understood and agreed that Sublandlord shall remain liable for such obligations
notwithstanding anything contained in the Sublease or this Consent Agreement or any subsequent
assignment(s), sublease(s) or transfer(s) of the interest of the tenant under the Lease.
Sublandlord shall be responsible for the collection of all rent due it from Subtenant, and for the
performance of all the other terms and conditions of the Sublease, it being understood that
Landlord is not a party to the Sublease and, notwithstanding anything to the contrary contained in
the Sublease, is not bound by any terms, provisions, representations or warranties contained in the
Sublease and is not obligated to Sublandlord or Subtenant for any of the duties and obligations
contained therein.

     5.     Administrative Fee. Upon Sublandlord’s execution and delivery of this Consent
Agreement, Sublandlord shall pay to Landlord the sum of $1,000.00 in consideration for Landlord’s
review of the Sublease and the preparation and delivery of this Consent Agreement. In addition,
Sublandlord shall pay to Landlord, on demand, a sum equal to all of Landlord’s costs, including
reasonable attorney’s fees, incurred in investigating and considering the proposed sublease of the
Premises. Sublandlord shall make such payment to Landlord no later than thirty (30) days from
Sublandlord’s receipt of an invoice from Landlord documenting such expenses.

     6.     No Transfer. Subtenant shall not further sublease the Sublet Premises, assign its
interest as the Subtenant under the Sublease or otherwise transfer its interest in the Sublet
Premises or the Sublease to any person or entity without the written consent of Landlord in
accordance with the terms and conditions of the Lease.

     7.     Lease. The parties agree that the Sublease is subject and subordinate to the terms
of the Lease, and all terms of the Lease, other than Sublandlord’s obligation to pay Monthly
Installments of Rent or as otherwise provided in Sections XIV and XV of the Sublease, are
incorporated into the Sublease. Subtenant shall not violate any provisions of the Lease, including
without limitation the Rules and Regulations attached thereto, as such Rules and Regulations may be
modified in accordance with the Lease. Subtenant shall not violate any provisions of the Lease.
In no event shall the Sublease or this Consent Agreement be construed as granting or conferring
upon the Sublandlord or the Subtenant any greater rights than those contained in the Lease nor
shall there be any diminution of the rights and privileges of the Landlord under the Lease, nor
shall the Lease be deemed modified in any respect. Without limiting the scope of the preceding
sentence, any construction or alterations performed in or to the Sublet Premises shall be performed
with Landlord’s prior written approval and in accordance with the terms and conditions of the
Lease. It is hereby acknowledged and agreed that any provisions in the Sublease which limit the
manner in which Sublandlord may amend the Lease are binding only upon Sublandlord and Subtenant as
between such parties. Landlord shall not be bound in any manner by such provisions and may rely
upon

-2-

 

Sublandlord’s execution of any agreements amending or terminating the Lease subsequent to the
date hereof notwithstanding any contrary provisions in the Sublease.

     8.     Parking and Services. Any parking rights granted to Subtenant pursuant to the
Sublease shall be satisfied out of the parking rights, if any, granted to Sublandlord under the
Lease. Sublandlord hereby authorizes Subtenant, as agent for Sublandlord, to obtain services and
materials for or related to the Sublet Premises, and Sublandlord agrees to pay for such services
and materials as additional Rent under the Lease upon written demand from Landlord. However, as a
convenience to Sublandlord, Landlord may bill Subtenant directly for such services and materials,
or any portion thereof, in which event Subtenant shall pay for the services and materials so billed
upon written demand, provided that such billing shall not relieve Sublandlord from its primary
obligation to pay for such services and materials.

     9.     Attornment. If the Lease or Sublandlord’s right to possession thereunder
terminates for any reason prior to expiration of the Sublease, Subtenant agrees, at the written
election of Landlord, to attorn to Landlord upon the then executory terms and conditions of the
Sublease for the remainder of the term of the Sublease. In the event of any such election by
Landlord, Landlord will not be (a) liable for any rent paid by Subtenant to Sublandlord more than
one month in advance, or any security deposit paid by Subtenant to Sublandlord, unless same has
been transferred to Landlord by Sublandlord; (b) liable for any act or omission of Sublandlord
under the Lease, Sublease or any other agreement between Sublandlord and Subtenant or for any
default of Sublandlord under any such documents which occurred prior to the effective date of the
attornment; (c) subject to any defenses or offsets that Subtenant may have against Sublandlord
which arose prior to the effective date of the attornment; (d) bound by any changes or
modifications made to the Sublease without the written consent of Landlord, (e) obligated in any
manner with respect to the transfer, delivery, use or condition of any furniture, equipment or
other personal property in the Sublet Premises which Sublandlord agreed would be transferred to
Subtenant or which Sublandlord agreed could be used by the Subtenant during the term of the
Sublease, or (f) liable for the payment of any improvement allowance, or any other payment, credit,
offset or amount due from Sublandlord to Subtenant under the Sublease. If Landlord does not elect
to have Subtenant attorn to Landlord as described above, the Sublease and all rights of Subtenant
in the Sublet Premises shall terminate upon the date of termination of the Lease or Sublandlord’s
right to possession thereunder. The terms of this Section 9 supercede any contrary provisions in
the Sublease.

     10.     Payments under the Sublease. If at any time Sublandlord is in default under the
terms of the Lease, Landlord shall have the right to contact Subtenant and require Subtenant to pay
all rent due under the Sublease directly to Landlord until such time as Sublandlord has cured such
default. Subtenant agrees to pay such sums directly to Landlord if requested by Landlord, and
Sublandlord agrees that any such sums paid by Subtenant shall be deemed applied against any sums
owed by Subtenant under the Sublease. Any such sums received by Landlord from Subtenant shall be
received by Landlord on behalf of Sublandlord and shall be applied by Landlord to any sums past due
under the Lease, in such order of priority as required under the Lease or, if the Lease is silent
in such regard, then in such order of priority as Landlord deems appropriate. The receipt of such
funds by Landlord shall in no manner be deemed to create a direct lease or sublease between
Landlord and Subtenant. If Subtenant fails to deliver its Sublease payments directly to Landlord
as required herein following receipt of written notice from Landlord as described above and fails
to cure such failure

-3-

 

within the cure period permitted under the Lease, then Landlord shall have the right to remove
any signage of Subtenant, at Subtenant’s cost, located outside the Premises or in the Building
lobby or elsewhere in the Building and to pursue any other rights or remedies available to Landlord
at law or in equity.

     11.     Excess Rent. If Landlord is entitled to any excess rent from Sublandlord pursuant
to the terms of the Lease, then, in addition to all rent otherwise payable by Sublandlord to
Landlord under the Lease, Sublandlord shall also pay to Landlord the portion of the excess rent to
which Landlord is entitled under the Lease, in the manner described in the Lease. Landlord’s
failure to bill Sublandlord for, or to otherwise collect, such sums shall in no manner be deemed a
waiver by Landlord of its right to collect such sums in accordance with the Lease.

     12.     Sublandlord Notice Address. If Sublandlord is subleasing the entire Premises or
otherwise vacating the Premises, Sublandlord’s new address for notices to Sublandlord under the
Lease shall be as follows: 250 Campus Drive, Marlborough, MA 01752, Attn: Chief Financial Officer;
and if no address is filled in at the preceding blank (or if a post office box address is used for
the preceding blank), then Landlord may continue to send notices to Sublandlord at the address(es)
provided in, and in accordance with the terms of, the Lease.

     13.     Landlord further agrees that (a) Landlord shall accept cure by Subtenant of defaults by
Sublandlord under the Lease; (b) the release and waiver of subrogation in Section 12 of the Lease
shall apply as between Landlord and Subtenant; (c) Subtenant may, without Landlord’s prior written
consent, sublet the Sublet Premises or assign the Sublease as described in Sections 9.7 and 9.8 of
the Lease, provided however that such right shall be personal to the Subtenant named herein only
and not to any subtenant or assignee of such named Subtenant; and (d) Landlord hereby consents to
Subtenant’s (i) use of the Sublet Premises as described in Section IV(A) of the Sublease, (ii) use
of Hazardous Materials in the Sublet Premises as described in Exhibit C of the Sublease, and (iii)
signage and alterations to the Sublet Premises as described in Sections VIII(A) and Exhibit D to
the Sublease and Subtenant’s use of Hollander Smith as its contractor; however, Landlord reserves
the right to require removal of such alterations at the end of the Lease term and restoration of
the Sublet Premises in accordance with the terms of the Lease.

     14.     Authority. Each party to this Consent Agreement represents hereby that the person
executing this Consent Agreement on its behalf has the authority to execute and deliver the same on
behalf of the party hereto for which such signatory is acting. Sublandlord and Subtenant hereby
represent and warrant that, to the best of their knowledge, neither Sublandlord nor Subtenant, nor
any persons or entities holding any legal or beneficial interest whatsoever in Sublandlord and
Subtenant, are (i) the target of any sanctions program that is established by Executive Order of
the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury
(“OFAC”); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50
U.S.C. App. § 5, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot
Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive Order of the
President issued pursuant to such statutes; or (iii) named on the following list that is published
by OFAC: “List of Specially Designated Nationals and Blocked Persons.” If the foregoing
representation is untrue at any time during the Term, default under the Lease will be deemed to
have occurred, without the necessity of notice to Sublandlord and Subtenant.

-4-

 

     15.     Limitation of Landlord’s Liability. Redress for any claim against Landlord under
this Consent Agreement shall be limited to and enforceable only against and to the extent of
Landlord’s interest in the Building. The obligations of Landlord under this Consent Agreement, if
any, are not intended to be and shall not be personally binding on, nor shall any resort be had to
the private properties of, any of its or its investment manager’s trustees, directors, officers,
partners, beneficiaries, members, stockholders, employees, or agents, and in no case shall Landlord
be liable to Sublandlord and/or Subtenant hereunder for any lost profits, damage to business, or
any form of special, indirect or consequential damages.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-5-

 

     IN WITNESS WHEREOF, Landlord, Sublandlord and Subtenant have executed this Consent Agreement
as of the date set forth above.

	 	 	 	 	 	 
	 	SUBLANDLORD:

CYTYC SURGICAL PRODUCTS,

a California corporation

 	 
	 	By:  	/s/ Timothy M. Adams	 
	 	Name:  	Timothy M. Adams 	 
	 	Title:  	Senior VP, CEO and Treasurer 	 
	 
	 	SUBTENANT:

CONCENTRIC MEDICAL, INC.,

a Delaware corporation

 	 
	 	By:  	                   /s/ Gary Curtis
 	 
	 	Name:  	Gary Curtis 	 
	 	Title:  	Chief Executive Officer and Director 	 
	 
	 	LANDLORD:

SFERS REAL ESTATE CORP. U,

a Delaware corporation

 	 
	 	By:  	             RREEF Management Company,
 	 
	 	 	a Delaware corporation, its Authorized Agent 	 
	 	 	 	 
	 
	 	 	 
	 	 	By:  	                                                       /s/ Mary Blaser
 	 
	 	 	Name:  	Mary Blaser  	 
	 	 	Title:  	Vice President, District Manager 	 
	 

Signature Page to Landlord Consent to Sublease

 

 

EXHIBIT A

SUBLEASE AGREEMENT

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