Document:

Real estate lease agreement for 2033 Westport Center Dr, Maryland Heights, MO

 EXHIBIT 10.11 
  
 LEASE AGREEMENT 
  
 THIS LEASE is executed this 22nd day of February, 2000, by and between DUKE-WEEKS REALTY LIMITED PARTNERSHIP, an Indiana limited partnership (“Landlord”), and INCYTE PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”). 
  
 WITNESSETH: 
  
 ARTICLE 1 – LEASE OF PREMISES 
  
 Section 1.01. Basic Lease Provisions and Definitions. 
  

	A.	Leased Premises (shown outlined on Exhibit A attached hereto): 2033 Westport Center Drive, Maryland Heights, Missouri 63146; Westport Center V (the “Building”);
located in Westport Center (the “Park”) 

  

	B.	Rentable Area: approximately 25,000 square feet 

  
 The parties hereby agree that the above square footage shall be deemed correct for all purposes hereunder. 
  

	C.	Tenant’s Proportionate Share: 71.43% 

  

	D.	Minimum Annual Rent: 

  
 May 1, 2000 – April 30, 2005                 $220,249.92 per year

  
 May 1, 2005 – April 30, 2010
                $242,250.00 per year 
  

	E.	Monthly Rental Installments: 

  
 May 1, 2000 – April 30, 2005                 $18,354.16 per month

  
 May 1, 2005 – April 30, 2010
                $20,187.50 per month 
  

	F.	Landlord’s Share of Taxes and Insurance: $1.26 times the rentable area of the Building 

  

	G.	Initial Monthly Additional Rent: $1.854.17 per month 

  

	H.	Lease Terms: Ten (10) years 

  

	I.	Commencement Date: May 1, 2000 

  

	J.	Security Deposit: $17,500.00 

  

	K.	Guarantor(s): None 

  

	L.	Broker(s): Duke-Weeks Realty Limited Partnership representing Landlord and Steve Schmid of Pace Corporate Services and John Brady of CRESA Partners representing Tenant

  

	M.	Permitted Use: Pharmaceutical research, general office and related purposes 

  

	N.	Address for notices: 

  

			
	Landlord:	  	Duke-Weeks Realty Limited Partnership
	 	  	635 Maryville Centre Drive, Suite 200
	 	  	St. Louis, Missouri 63141-5819
	 	  	Fax: (314) 212-8299
		
	Tenant:	  	Incyte Pharmaceuticals, Inc.
	 	  	2033 Westport Center Drive
	 	  	Maryland Heights, Missouri 63146
	 	  	Fax:
                                        
            

			
	With a copy to:	  	Incyte Pharmaceuticals, Inc.
	 	  	3174 Porter Drive
	 	  	Palo Alto, CA 94304
	
	Address for rental and other payments:
		
	 	  	Duke-Weeks Realty Limited Partnership
	 	  	P.O. Box 958092
	 	  	St. Louis, Missouri 63195-0001

  
 Section 1.02.
Leased Premises. Landlord hereby leases to Tenant and Tenant leases from Landlord, under the terms and conditions herein, the Leased Premises as outlined on Exhibit A attached hereto. Tenant shall have ninety-two (92) unassigned car parking
spaces in the “Parking Area” as shown on Exhibit A. 
  
 ARTICLE 2 – TERM AND POSSESSION 
  
 Section 2.01. Term. The term of this Lease (“Lease Term”) shall be for the period of time and shall commence on the Commencement date described in the Basic Lease Provisions (the “Commencement Date”). Upon
delivery of possession of the Leased Premises to Tenant, Tenant shall execute a letter of understanding acknowledging (i) the Commencement Date of this Lease, and (ii) that Tenant has accepted the Leased Premises. If Tenant takes possession of and
occupies the Leased Premises, Tenant shall be deemed to have accepted the Leased Premises and that the condition of the Leased Premises and the Building was at the time satisfactory and in conformity with the provisions of this Lease in all
respects. 
  
 Section 2.02. Construction of Tenant
Improvements. Upon execution of this Lease, a diagram of the floor plan of the Leased Premises prepared by Tenant shall be attached hereto as Exhibit B. Tenant has personally inspected the Leased Premises and accepts the same “AS
IS”, in shell condition (as defined in Exhibit C attached hereto), without representation or warranty by Landlord of any kind and with the understanding that Landlord shall have no responsibility with respect thereto. Tenant shall
construct, at its sole cost and expense, the improvements to the Leased Premises in conformity with the Construction Addendum attached hereto and incorporated herein by this reference. 
  
 Section 2.03. Surrender of the Premises. Upon the expiration or earlier termination of this Lease, Tenant
shall immediately surrender the Leased Premises to Landlord in broom-clean condition and in good condition and repair. Tenant shall also remove its personal property, trade fixtures and any of Tenant’s alterations designated by Landlord on
Exhibit B-1 attached hereto, promptly repair any damage caused by such removal, and restore the Leased Premises to the same condition with the same type and amount of improvements as designated on Exhibit B attached hereto, existing
upon the Commencement Date, reasonable wear and tear excepted. If Tenant fails to do so, Landlord may restore the Leased Premises to such condition at Tenant’s expense, Landlord may cause all of said property to be removed at Tenant’s
expense, and Tenant hereby agrees to pay all the costs and expenses thereby reasonably incurred. All Tenant property which is not removed within ten (10) days following Landlord’s written demand therefor shall be conclusively deemed to have
been abandoned by Tenant, and Landlord shall be entitled to dispose of such property at Tenant’s cost without thereby incurring any liability to Tenant. The provisions of this section shall survive the expiration or other termination of this
Lease. 
  
 Section 2.04. Holding Over. If Tenant
retains possession of the Leased Premises after the expiration or earlier termination of this Lease, Tenant shall become a tenant from month to month at (i) one hundred fifty percent (150%) of the Monthly Rental Installment in effect at the end of
the Lease Term for the first two (2) months Tenant holds over, and (ii) two hundred percent (200%) of Monthly Rental Installment in affect at the end of the Lease Term thereafter, and otherwise upon the terms, covenants and conditions herein
specified, so far as applicable. Acceptance by Landlord of rent in such event shall not result in a renewal of this Lease, and Tenant shall vacate and surrender the Leased Premises to Landlord upon Tenant being given thirty (30) days’ prior
written notice from Landlord to vacate whether or not said notice is given on the rent paying date. This Section 2.04 shall in no way constitute a consent by Landlord to any holding over by Tenant upon the expiration or earlier termination of
this Lease, nor limit Landlord’s remedies in such event. 
  
 Section 2.05. Early Occupancy. Landlord will use commercially reasonable efforts to allow Tenant to take possession of the Leased Premises on February 4, 2000 for the construction of tenant improvements and fixturing purposes.
Tenant agrees to coordinate its work with Landlord’s work of completing the shell of the Building such that Tenant’s work does not interfere with or delay Landlord’s work; provided, however, that neither Landlord nor any of
Landlord’s affiliates shall have any responsibility or liability whatsoever for any injury (including death) to persons or loss or damage to any of Tenant’s leasehold improvements, fixtures, equipment or any other materials installed or
left in the Leased Premises prior to the Commencement Date. All of the terms and conditions of this Lease will become effective upon Tenant taking 
  

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 possession of the Leased Premises except for the payment of Minimum Annual Rent and Additional Rent which will commence
on the Commencement Date. 
  
 ARTICLE 3 – RENT

  
 Section 3.01. Base Rent. Tenant shall pay to
Landlord the Minimum Annual Rent in the Monthly Rental Installments, in advance, without deduction or offset, beginning on the Commencement Date and on or before the first day of each and every calendar month thereafter during the Lease Term. The
Monthly Rental Installment for partial calendar months shall be prorated. 
  
 Section 3.02. Additional Rent. In addition to the Minimum Annual Rent Tenant shall pay to Landlord for each calendar year during the Lease Term, as “Additional Rent,” Tenant’s
Proportionate Share of all actual costs and expenses incurred by Landlord during the Lease Term for (i) Real Estate Taxes and insurance premiums to the extent that they exceed Landlord’s Share of Taxes and Insurance; and (ii) Common Area
Charges. 
  
 “Real Estate Taxes” shall include any form
of real estate tax or assessment or service payments in lieu thereof, and any license fee, commercial rental tax, improvement bond or other similar charge or tax (other than inheritance, personal income or estate taxes) imposed upon the Building or
common areas (or against Landlord’s business of leasing the Building) by any authority having the power to so charge or tax, together with costs and expenses of contesting the validity or amount of Real Estate Taxes which at Landlord’s
option may be calculated as if such contesting work had been performed on a contingent fee basis (whether charged by Landlord’s counsel or representative; provided, however, that said fees are reasonably comparable to the fees charged for
similar services by others not affiliated with Landlord, but in no event shall fees exceed thirty-three percent (33%) of the good faith estimated tax savings). Additionally, Tenant shall pay, prior to delinquency, all taxes assessed against and
levied upon trade fixtures, furnishings, equipment and all personal property of Tenant contained in the Leased Premises. 
  
 “Common Area Charges” shall mean all of Landlord’s expenses for management, operation, repair, replacement and maintenance to keep the
Building and common areas in good order, condition and repair (including all additional direct costs and expenses of operation and maintenance of the Building which Landlord reasonably determines it would have paid or incurred during such year if
the Building had been fully occupied), including, but not limited to: management fees (not to exceed five percent (5%) of the gross revenues for the Building) or administrative fees; common area utilities; stormwater discharge fees; license, permit,
inspection and other fees; fees and assessment imposed by any covenants or owners’ association; professional fees; security services; costs in complying with any governmental laws or ordinances; and maintenance, repair and replacement of the
driveways, parking and loading areas (including snow removal), exterior lighting, landscaped areas, walkways, curbs, drainage strips, sewer lines, exterior walls, foundation, structural frame, roof and gutters. The costs of any capital improvement
shall be amortized over the useful life of such improvement (as reasonably determined by Landlord), and only the amortized portion shall be included in Common Area Charges. 
  
 Section 3.03. Payment of Additional Rent. Landlord shall estimate the total amount of Additional Rent to be
paid by Tenant during each calendar year of the Lease Term, pro-rated for any partial years. Commencing on the Commencement Date, Tenant shall pay to Landlord each month, at the same time the Monthly Rental Installment is due, an amount equal to
one-twelfth (1/12) of the estimated Additional Rent for such year. Within a reasonable time after the end of each calendar year, Landlord shall submit to Tenant a statement of the actual amount of such Additional Rent, and within thirty (30) days
after receipt of such statement. Tenant shall pay any deficiency between the actual amount owed and the estimates paid during such calendar year. In the event of overpayment, Landlord shall credit the amount of such overpayment toward the next
Monthly Rental Installment. 
  
 Section 3.04. Late
Charges. Tenant acknowledges that Landlord shall incur certain additional unanticipated administrative and legal costs and expenses if Tenant fails to timely pay any payment required hereunder. Therefore, in addition to the other remedies
available to Landlord hereunder, if any payment required to be paid by Tenant to Landlord hereunder shall become overdue by more than five (5) business days, such unpaid amount shall bear interest from the due date thereof to the date of payment at
the prime rate (as reported in the Wall Street Journal) of interest (“Prime Rate”) plus six percent (6%) per annum. 
  
 Section 3.05. Books and Records; Audit. Tenant shall have the right to audit Landlord’s books and records pertaining to Additional Rent
for any year within sixty (60) days after receipt of a reconciliation statement therefor so as to verity the accuracy of same. Any information obtained by Tenant pursuant to such audit shall be kept confidential by Tenant, and such audit shall
comply with Landlord’s reasonable guidelines. If such audit accurately discloses an error in the calculation of Additional Rent, Landlord shall credit Tenant for any overcharge or bill Tenant for any undercharge. 
  

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 ARTICLE 4 – SECURITY DEPOSIT 
  
 Tenant, upon execution of this Lease, shall deposit with Landlord the
Security Deposit as security for the performance by Tenant of all Tenant’s obligations contained in this Lease. In the event of a default by Tenant Landlord may apply all or any part of the Security Deposit to cure all or any part of such
default; and Tenant agrees to promptly, upon demand, deposit such additional sum with Landlord as may be required to maintain the full amount of the Security Deposit. All sums held by Landlord pursuant to this section shall be without interest. At
the end of the Lease Term, provided that there is then no uncured default, Landlord shall return the Security Deposit to Tenant. 
  
 ARTICLE 5 – USE 
  
 Section 5.01. Use of Leased Premises. The Leased Premises are to be used by Tenant solely for the Permitted Use and for no other purposes
without the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed. 
  
 Section 5.02. Covenants of Tenant Regarding Use. Tenant shall (i) use and maintain the Leased Premises and conduct its business thereon in a
safe, careful, reputable and lawful manner, (ii) comply with all laws, rules, regulations, orders, ordinances, directions and requirements of any governmental authority or agency, now in force or which may hereafter be in force, including without
limitation those which shall impose upon Landlord or Tenant any duty with respect to or triggered by a change in the use or occupation of, or any improvement or alteration to, the Leased Premises, and (iii) comply with and obey all reasonable
directions of the Landlord, including any rules and regulations that may be adopted by Landlord from time to time. Tenant shall not do or permit anything to be done in or about the Leased Premises or common areas which constitutes a nuisance or
which interferes with the rights of other tenants or injures or annoys them. Landlord shall not be responsible to Tenant for the nonperformance by any other tenant or occupant of the Building of its lease or of any rules and regulations. Tenant
shall not overload the floors of the Leased Premises. All damage to the floor structure or foundation of the Building due to improper positioning or storage of items or materials shall be repaired by Landlord at the sole expense of Tenant, who shall
reimburse Landlord immediately therefor upon demand. Tenant shall not use the Leased Premises, or allow the Leased Premises to be used, for any purpose or in any manner which would invalidate any policy of insurance now or hereafter carried on the
Building or increase the rate of premiums payable on any such insurance policy unless Tenant reimburses Landlord as Additional Rent for any increase in premiums charged. 
  
 Section 5.03. Landlord’s Rights Regarding Use. In addition to the rights specified elsewhere in this
Lease, Landlord shall have the following rights regarding the use of the Leased Premises or the common areas, each of which may be exercised without notice or liability to Tenant, (a) Landlord may install such signs, advertisements, notices or
tenant identification information as it shall deem necessary or proper; (b) Landlord shall have the right at any time to control, change or otherwise alter the common areas as it shall deem necessary or proper; and (c) Landlord or Landlord’s
agent shall be permitted to inspect or examine the Leased Premises at any reasonable time upon reasonable notice (except in an emergency when no notice shall be required), and Landlord shall have the right to make any repairs to the Leased Premises
which are necessary for its preservation; provided, however, that any repairs made by Landlord shall be at Tenant’s expenses, except as provided in Section 7.02 hereof. Landlord shall incur no liability to Tenant for such entry, nor shall such
entry constitute an eviction of Tenant or a termination of this Lease, or entitle Tenant to any abatement of rent therefor. 
  
 ARTICLE 6 – UTILITIES AND SERVICES 
  
 Tenant shall obtain in its own name and pay directly to the appropriate supplier the cost of all utilities and services serving the Leased Premises.
However, if any services or utilities are jointly metered with other property, Landlord shall make a reasonable determination of Tenant’ proportionate share of the cost of such utilities and services (at rates that would have been payable if
such utilities and services had been directly billed by the utilities or services providers to Tenant) and Tenant shall pay such share to Landlord within fifteen (15) days after receipt of Landlord’s written statement. Landlord shall not be
liable in damages or otherwise for any failure or interruption of any utility or other building service and no such failure or interruption shall entitle Tenant to terminate this Lease or withhold sums due hereunder. In the event of utility
“deregulation”, Landlord may choose the service provider. 
  
 ARTICLE 7– MAINTENANCE AND REPAIRS 
  
 Section 7.01. Tenant’s Responsibility. During the Lease Term, Tenant shall, at its own cost and expense, maintain the Leased Premises in good condition, regularly servicing and promptly making all repairs and replacements
thereto, including but not limited to the electrical systems, hosting and air conditioning systems, plate glass, floors, windows and doors, sprinkler and plumbing systems, and shall obtain a preventive maintenance contract on the heating,
ventilating and air-conditioning systems, and provide Landlord with a copy thereof. The preventive maintenance contract shall meet or exceed Landlord’s standard 
  

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 maintenance criteria, and shall provide for the inspection and maintenance of the heating, ventilating and air
conditioning system on not less than a semi-annual basis. 
  
 Section 7.02. Landlord’s Responsibility. During the Lease Term, Landlord shall maintain in good condition and repair, and replace as necessary, the roof, exterior walls, foundation and structural frame of the Building and
the parking and landscaped areas, the costs of which shall be included in Common Area Charges, provided, however, that to the extent any of the foregoing items require repair because of the negligence, misuse, or default of Tenant, its employees,
agents, customers or invitees, Landlord shall make such repairs solely at Tenant’s expense. 
  
 Section 7.03. Alterations. Tenant shall not permit alterations in or to the Leased Premises unless and until the plans have been approved by
Landlord in writing. As a condition of such approval, Landlord may require Tenant to remove the alterations and restore the Leased Premises upon termination of this Lease; otherwise, all such alterations shall at Landlord’s option become a part
of the realty and the property of Landlord, and shall not be removed by Tenant. Upon rendering its approval, Landlord shall provide Tenant with a list of those alterations which Tenant shall be required to remove upon the expiration or earlier
termination of this Lease, which lists shall be attached hereto as Exhibit B-1. Tenant shall ensure that all alterations shall be made in accordance with all applicable laws, regulations and building codes, in a good and workmanlike manner
and of qualify equal to or better than the original construction of the Building. No person shall be entitled to any lien derived through or under Tenant for any labor or material furnished to the Leased Premises, and nothing in this Lease shall be
construed to constitute a consent by Landlord to the creation of any lien. If any lien is filed against the Leased Premises for work claimed to have been done for or material claimed to have been furnished to Tenant, Tenant shall cause such lien to
be discharged of record within thirty (30) days after filing. Tenant shall indemnify Landlord from all costs, losses, expenses and attorneys’ fees in connection with any construction or alteration and any related lien. 
  
 ARTICLE 8 – CASUALTY 
  
 Section 8.01. Casualty. In the event of total or partial
destruction of the Building or the Leased Premises by fire or other casualty, Landlord agrees to promptly restore and repair same; provided, however, Landlord’s obligation hereunder shall be limited to the reconstruction of such of the tenant
finish improvements as were originally required to be made by Landlord, if any. Rent shall proportionately abate during the time that the Leased Premises or part thereof are unusable because of any such damage. Notwithstanding the foregoing, if the
Leased Premises are (i) so destroyed that they cannot be repaired or rebuilt within one hundred eight (180) days from the casualty date; or (ii) destroyed by a casualty which is not covered by the insurance required hereunder or, if covered, such
insurance proceeds are not released by any mortgagee entitled thereto or are insufficient to rebuild the Building and the Leased Premises; then, in case of a clause (i) casualty, either Landlord or Tenant may, or, in the case of a clause (ii)
casualty, then Landlord may, upon thirty (30) days’ written notice to the other party, terminate this Lease with respect to matters thereafter accruing. 
  
 Section 8.02. All Risk Coverage Insurance. During the Lease Term, Landlord shall maintain all risk coverage insurance on the Building, but
shall not protect Tenant’s property on the Leased Premises; and, notwithstanding the provisions of Section 9.01, Landlord shall not be liable for any damage to Tenant’s property, regardless of cause, including the negligence of
Landlord and its employees, agents and invitees. Tenant hereby expressly waives any right or recovery against Landlord for damage to any property of Tenant located in or about the Leased Premises, however caused, including the negligence of Landlord
and its employees, agents and invitees. Notwithstanding the provisions of Section 9.01 below, Landlord hereby expressly waives any rights of recovery against Tenant for damage to the Leased Premises or the Building, which is insured against
under Landlord’s all risk coverage insurance. All insurance policies maintained by Landlord or Tenant as provided in this Lease shall contain an agreement by the insurer waiving the insurer’s right of subrogation against the other party to
this Lease. 
  
 ARTICLE 9 – LIABILITY INSURANCE

  
 Section 9.01. Tenant’s Responsibility.
Landlord shall not be liable to Tenant or to any other person for (i) damage to property or injury or death to persons due to the conditions of the Leased Premises, the Building or the common areas, or (ii) the occurrence of any accident in or about
the Leased Premises or the common areas, or (iii) any act or neglect of Tenant or any other tenant or occupant of the Building or of any other person, unless such damage, injury or death is directly and solely the result of Landlord’s
negligence; and Tenant hereby releases Landlord from any and all liability for the same. Tenant shall be liable for, and shall indemnify and defend Landlord from, any and all liability for (i) any act or neglect of Tenant and any person coming on
the Leased Premises or common areas by the license of Tenant, express or implied, (ii) any damage to the Leased Premises, and (iii) any loss of or damage or injury to any person (including death resulting therefrom) or property occurring in, on or
about the Leased Premises, regardless of cause, except for any loss or damage covered by Landlord’s all risk coverage insurance as provided in Section 8.02 and except 
  

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 for that caused solely and directly by Landlord’s negligence. This provision shall survive the expiration or earlier
termination of this Lease. 
  
 Section 9.02.
Tenant’s Insurance. Tenant shall carry general public liability and property damage insurance, issued by one or more insurance companies acceptable to Landlord, with the following minimum coverages: 
  
 A. Worker’s Compensation: minimum statutory amount. 
  
 B. Commercial General Liability Insurance, including blanket, contractual liability, broad
form property damage, personal injury, completed operations, products liability, and fire damage: Not less than $2,000,000 Combined Single Limit for both bodily injury and property damage. 
  
 C. All Risk Coverage, Vandalism and Malicious Mischief, and Sprinkler Leakage insurance, if
applicable, for the full cost of replacement of Tenant’s property. 
  
 D.
Business interruption insurance. 
  
 The insurance policies shall protect Tenant
and Landlord as their interests may appear, naming Landlord and Landlord’s managing agent and mortgagee as additional insureds, and shall provide that they may not be canceled on less than thirty (30) days’ prior written notice to
Landlord. Tenant shall furnish Landlord with Certificates of Insurance evidencing all required coverages on or before the Commencement Date. If Tenant fails to carry such insurance and furnish Landlord with such Certificate of Insurance after a
request to do so, Landlord may obtain such insurance and collect the cost thereof from Tenant. 
  
 ARTICLE 10 – EMINENT DOMAIN 
  
 If all or any substantial part of the Building or common areas shall be acquired by the exercise of eminent domain, Landlord may terminate this Lease by giving written notice to Tenant on or before the date that
actual possession thereof is so taken. If all or any part of the Leased Premises shall be acquired by the exercise of eminent domain so that the Leased Premises shall become unusable by Tenant for the Permitted Use, Tenant may terminate this Lease
as of the date that actual possession thereof is so taken by giving written notice to Landlord, and all damages awarded shall belong to Landlord; provided, however, that Tenant may claim dislocation damages if such amount is not subtracted from
Landlord’s award. 
  
 ARTICLE 11 – ASSIGNMENT AND
SUBLEASE 
  
 Tenant shall not assign this Lease or sublet
the Leased Premises in whole or in part without Landlord’s prior written consent, which consent shall not be unreasonably withheld, delayed or denied (provided that it shall not be unreasonable for Landlord to withhold or deny its consent with
respect to any proposed assignment or subletting to a third party that is already a tenant in the Building or the Park). In the event of any assignment or subletting, Tenant shall remain primarily liable hereunder, and any extension, expansion,
rights of first offer, rights of first refusal or other options granted to Tenant under this Lease shall be rendered void and of no further force or effect. The acceptance of rent from any other person shall not be deemed to be a waiver of any of
the provisions of this Lease or to be a consent to the assignment of this Lease or the subletting of the Leased Premises. Without in any way limiting Landlord’s right to refuse to consent to any assignment or subletting of this Lease, Landlord
reserves the right to refuse to give such consent if in Landlord’s opinion (i) the Leased Premises are or may be in any way adversely affected; (ii) the business reputation of the proposed assignee or subtenant is unacceptable; or (iii) the
financial worth of the proposed assignee or subtenant is insufficient to meet the obligations hereunder. Landlord further expressly reserves the right to refuse to give its consent to any subletting if the proposed rent is publicly advertised to be
less than the then current rent for similar premises in the Park. Tenant agrees to reimburse Landlord for reasonable accounting and attorney’s fees incurred in conjunction with the processing and documentation of any such requested assignment,
subletting or any other hypothecation of this Lease or Tenant’s interest in and to the Leased Premises, not to exceed Five Hundred Dollars ($500.00). 
  
 Notwithstanding the foregoing, Tenant may assign the Lease or sublease all or any portion of the Leased Premises without Landlord’s consent to any of
the following (a “Permitted Transferee”), provided that the Permitted Transferee’s financial condition, creditworthiness and business reputation following the transfer are equal to or exceed those of Tenant: (i) any successor
corporation or other entity resulting from a merger or consolidation of Tenant; (ii) any purchaser of all or substantially all of Tenant’s assets; or (iii) any entity which controls, is controlled by, or is under common control with Tenant.
Tenant shall give Landlord at least thirty (30) days’ prior written notice of such assignment or sublease. Any Permitted Transferee shall assume in writing all of Tenant’s obligations under this Lease. Tenant shall nevertheless at all
times remain fully responsible and liable for the payment of rent and the performance and observance of all of Tenant’s other obligations under this Lease. Nothing in this paragraph is intended to nor shall permit Tenant to transfer its
interest under this Lease as part of a fraud or subterfuge to intentionally avoid its obligations under this Lease 
  

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 (for example, transferring its interest to a shell corporation that subsequently files a bankruptcy), and any such
transfer shall constitute an Event of Default hereunder. 
  
 ARTICLE 12 – TRANSFERS BY LANDLORD 
  
 Section 12.01. Sale of the Building. Landlord shall have the right to sell the Building at any time during the Lease Term, subject only to the rights of Tenant hereunder; and such sale shall operate to release Landlord from
liability hereunder after the date of such conveyance. 
  
 Section 12.02. Subordination and Estoppel Certificate. Landlord shall have the right to subordinate this Lease to any mortgage presently existing or hereafter placed upon the Building by so declaring in such mortgage. Within
ten (10) days following receipt of a written request from Landlord, Tenant shall execute and deliver to Landlord, without cost, any instrument which Landlord deems necessary or desirable to confirm the subordination of this Lease and an estoppel
certificate in such form as Landlord may reasonably request certifying (i) that this Lease is in full force and effect and unmodified or stating the nature of any modification, (ii) the date to which rent has been paid, (iii) that there are not, to
Tenant’s knowledge, any uncured defaults or specifying such defaults if any are claimed, and (iv) any other matters or state of facts reasonably required respecting the Lease. Such estoppel may be relied upon by Landlord and by any purchaser or
mortgagee of the Building. Notwithstanding the foregoing, if the mortgagee shall take title to the Leased Premises through foreclosure or deed in lieu of foreclosure, Tenant shall be allowed to continue in possession of the Leased Premises as
provided for in this Lease so long as Tenant shall not be in default beyond any applicable cure period. 
  
 ARTICLE 13 – DEFAULT AND REMEDY 
  
 Section 13.01. Default. The occurrence of any of the following shall be a “Default”: 
  
 (a) Tenant fails to pay any Monthly Rental Installment or Additional Rent
within five (5) business days after the same is due, or Tenant fails to pay any other amounts due Landlord from Tenant within ten (10) days after the same is due. 
  
 (b) Tenant fails to perform or observe any other term, condition, covenant or obligation required under this Lease for a
period of thirty (30) days after notice thereof from Landlord; provided, however, that if the nature of Tenant’s default is such that more than thirty days are reasonably required to cure, then such default shall be deemed to have been cured if
Tenant commences such performance within said thirty-day period and thereafter diligently completes the required action within a reasonable time. 
  
 (c) Tenant shall assign or sublet all or a portion of the Leased Premises in contravention of the provisions of Article 11 of this Lease. 
  
 (d) All or substantially all of Tenant’s assets in the Leased Premises
or Tenant’s interest in this Lease are attached or levied under execution (and Tenant does not discharge the same within sixty (60) days thereafter); a petition in bankruptcy, insolvency or for reorganization or arrangement is filed by or
against Tenant (and Tenant fails to secure a stay or discharge thereof within sixty (60) days thereafter); Tenant is insolvent and unable to pay its debts as they become due; Tenant makes a general assignment for the benefit of creditors. Tenant
takes the benefit of any insolvency action or law; the appointment of a receiver or trustee in bankruptcy for Tenant or its assets if such receivership has not been vacated or set aside within thirty (30) days thereafter; or, dissolution or other
termination of Tenant’s corporate charter if Tenant is a corporation. 
  
 Section 13.02. Remedies. Upon the occurrence of any Default, Landlord shall have the following rights and remedies, in addition to those allowed by law or equity, any one or more of which may be
exercised without further notice to Tenant: 
  
 (a) Landlord may
apply the Security Deposit or re-enter the Leased Premises and cure any default of Tenant, and Tenant shall reimburse Landlord as Additional Rent for any costs and expenses which Landlord thereby incurs; and Landlord shall not be liable to Tenant
for any loss or damage which Tenant may sustain by reason of Landlord’s action. 
  
 (b) Landlord may terminate this Lease or, without terminating this Lease, terminate Tenant’s right to possession of the Leased Premises as of the date of such Default, and thereafter (i) neither Tenant nor any
person claiming under or through Tenant shall be entitled to possession of the Leased Premises, and Tenant shall immediately surrender the Leased Premises to Landlord; and (ii) Landlord may re-enter the Leased Premises and dispossess Tenant and any
other occupants of the Leased Premises by any lawful means and may remove their effects, without prejudice to any other remedy which Landlord may have. Upon the termination of this Lease, Landlord may declare the present value (discounted at the
Prime Rate) of all rent which would have been due under this Lease for the balance of the Lease Term to be immediately due and payable, whereupon Tenant shall be obligated to pay the same to Landlord, together with all loss or damage 

  

 -7- 

 
which Landlord may sustain by reason of Tenant’s default (“Default Damages”), which shall include without limitation expenses of preparing the
Leased Premises for re-letting, demolition, repairs, tenant finish improvements, brokers’ commissions and attorneys’ fees, it being expressly understood and agreed that the liabilities and remedies specified in this subsection (b) shall
survive the termination of this Lease. 
  
 (c) Landlord may,
without terminating this Lease, re-enter the Leased Premises and re-let all or any part thereof for a term different from that which would otherwise have constituted the balance of the Lease Term and for rent on terms and conditions different from
those contained herein, whereupon Tenant shall be immediately obligated to pay to Landlord as liquidated damages the present value (discounted at the Prime Rate) of the difference between the rent provided for herein and that provided for in any
lease covering a subsequent re-letting of the Leased Premises, for the period which would otherwise have constituted the balance of the Lease Term, together with all of Landlord’s Default Damages. 
  
 (d) Landlord may sue for injunctive relief or to recover damages for any loss
resulting from the Default. 
  
 Section 13.03.
Landlord’s Default and Tenant’s Remedies. Landlord shall be in default if it fails to perform any term, condition, covenant or obligation required under this Lease for a period of thirty (30) days after written notice thereof from
Tenant to Landlord; provided, however, that if the term, condition, covenant or obligation to be performed by Landlord is such that it cannot reasonably be performed within thirty (30) days, such default shall be deemed to have been cured if
Landlord commences such performance within said thirty-day period and thereafter diligently undertakes to complete the same. Upon the occurrence of any such default, Tenant may sue for injunctive relief or to recover damages for any loss directly
resulting from the breach, but Tenant shall not be entitled to terminate this Lease or withhold, offset or abate any sums due hereunder. 
  
 Section 13.04. Limitation of Landlord’s Liability. If Landlord shall fail to perform any term, condition, covenant or obligation
required to be performed by it under this Lease and if Tenant shall, as a consequence thereof, recover a money judgment against Landlord, Tenant agrees that it shall look solely to Landlord’s right, title and interest in and to the Building for
the collection of such judgment; and Tenant further agrees that no other assets of Landlord shall be subject to levy, execution or other process for the satisfaction of Tenant’s judgment. 
  
 Section 13.05. Nonwaiver of Defaults. Neither party’s
failure or delay in exercising any of its rights or remedies or other provisions of this Lease shall constitute a waiver thereof or affect its right thereafter to exercise or enforce such right or remedy or other provision. No waiver of any default
shall be deemed to be a waiver of any other default. Landlord’s receipt of less than the full rent due shall not be construed to be other than a payment on account of rent then due, nor shall any statement on Tenant’s check or any letter
accompanying Tenant’s check be deemed an accord and satisfaction. No act or omission by Landlord or its employees or agents during the Lease Term shall be deemed an acceptance of a surrender of the Leased Premises, and no agreement to accept
such a surrender shall be valid unless in writing and signed by Landlord. 
  
 Section 13.06. Attorney’s Fees. If either party defaults in the performance or observance of any of the terms, conditions, covenants or obligations contained in this Lease, and the non-defaulting
party obtains a judgment against the defaulting party, then the defaulting party agrees to reimburse the non-defaulting party for reasonable attorneys’ fees incurred in connection therewith. 
  
 ARTICLE 14 – LANDLORD’S RIGHT TO RELOCATE TENANT

  
 [Intentionally Omitted.] 
  
 ARTICLE 15 – TENANT’S RESPONSIBILITY REGARDING

 ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES 
  
 Section 15.01. Definitions. 
  
 (a) “Environmental Laws” – All present or future federal, state and municipal laws, ordinances, rules and
regulations applicable to the environmental and ecological condition of the Leased Premises, the rules and regulations of the Federal Environmental Protection Agency or any other federal, state or municipal agency or governmental board or entity
having jurisdiction over the Leased Premises. 
  
 (b)
“Hazardous Substances” – Those substances included within the definitions of “hazardous substances,” “hazardous materials,” “toxic substances” “solid waste” or “infectious waste” under
Environmental Laws. 
  

 -8- 

 Section 15.02. Compliance. Tenant, at its sole cost and expense, shall promptly comply with
the Environmental Laws including any notice from any source issued pursuant to the Environmental Laws or issued by any insurance company which shall impose any duty upon Tenant with respect to the use, occupancy, maintenance or alteration of the
Leased Premises whether such notice shall be served upon Landlord or Tenant. 
  
 Section 15.03. Restrictions on Tenant. Tenant shall operate its business and maintain the Leased Premises in compliance with all Environmental Laws. Tenant shall not cause or permit the use, generation,
release, manufacture, refining, production, processing, storage or disposal of any Hazardous Substances on, under or about the Leased Premises, or the transportation to or from the Leased Premises of any Hazardous Substances, except as necessary and
appropriate for its Permitted Use in which case the use, storage or disposal of such Hazardous Substances shall be performed in compliance with the Environmental Laws and the highest standards prevailing in the industry. 
  
 Section 15.04. Notices, Affidavits, Etc. Tenant shall
immediately notify Landlord of (i) any violation by Tenant, its employees, agents, representatives, customers, invitees or contractors of the Environmental Laws on, under or about the Leased Premises, or (ii) the presence or suspected presence of
any Hazardous Substances on, under or about the Leased Premises and shall immediately deliver to Landlord any notice received by Tenant relating to (i) and (ii) above from any source. Tenant shall execute affidavits, representations and the like
within five (5) days of Landlord’s request therefor concerning Tenant’s best knowledge and belief regarding the presence of any Hazardous Substances on, under or about the Leased Premises. 
  
 Section 15.05. Landlord’s Rights. Landlord and its agents
shall have the right, but not the duty, upon advance notice (except in the case of emergency when no notice shall be required) to inspect the Leased Premises and conduct tests thereon to determine whether or the extent to which there has been a
violation of Environmental Laws by Tenant or whether there are Hazardous Substances on, under or about the Leased Premises. In exercising its rights herein, Landlord shall use reasonable efforts to minimize interference with Tenant’s business
but such entry shall not constitute an eviction of Tenant, in whole or in part, and Landlord shall not be liable for any interference, loss, or damage to Tenant’s property or business caused thereby. 
  
 Section 15.06. Tenant’s Indemnification. Tenant shall
indemnify Landlord and Landlord’s managing agent from any and all claims, losses, liabilities, costs, expenses and damages, including attorneys’ fees, costs of testing and remediation costs, incurred by Landlord in connection with any
breach by Tenant of its obligations under this Article 15. The covenants and obligations under this Article 15 shall survive the expiration or earlier termination of this Lease. 
  
 Section 15.07. Landlord’s Representation. Notwithstanding anything contained in this Article 15 to the
contrary, Tenant shall not have any liability to Landlord under this Article 15 resulting from any conditions existing, or events occurring, or any Hazardous Substances existing or generated, at, in, on, under or in connection with the Leased
Premises prior to the Commencement Date of this Lease except to the extent Tenant exacerbates the same. 
  
 ARTICLE 16 – MISCELLANEOUS 
  
 Section 16.01. Benefit of Landlord and Tenant. This Lease shall inure to the benefit of and be binding upon Landlord and Tenant and their
respective successors and assigns. 
  
 Section 16.02.
Governing Law. This Lease shall be governed in accordance with the laws of the state where the Building is located. 
  
 Section 16.03. Guaranty. In consideration of Landlord’s leasing the Leased Premises to Tenant, Tenant shall provide Landlord with a
Guaranty of Lease executed by the guarantor(s) described in the Basic Lease Provisions, if any. 
  
 Section 16.04. Force Majeure. Landlord and Tenant (except with respect to the payment of any monetary obligation) shall be excused for the
period of any delay in the performance of any obligation hereunder when such delay is occasioned by causes beyond its control, including but not limited to work stoppages, boycotts, slowdowns or strikes; shortages of materials, equipment, labor or
energy; unusual weather conditions; or acts or omissions of governmental or political bodies. 
  
 Section 16.05. Examination of Lease. Submission of this instrument for examination or signature to Tenant does not constitute a reservation of or option for Lease, and it is not effective as a Lease or
otherwise until execution by and delivery to both Landlord and Tenant. 
  
 Section 16.06. Indemnification for Leasing Commissions. The parties hereby represent and warrant that the only real estate brokers involved in the negotiation and execution of this Lease are the Brokers. Each 
  

 -9- 

 party shall indemnify the other from any and all liability for breach of this representation and warranty on its part and
shall pay any compensation to any other broker or person who may be entitled thereto. 
  
 Section 16.07. Notices. Any notice required or permitted to be given under this Lease or by law shall be deemed to have been given if it is written and delivered in person, by overnight courier, mailed
by certified mail, postage prepaid, or via facsimile to the party who is to receive such notice at the address specified in Article 1. If delivered in person, notice shall be deemed given as of the delivery date. If sent by overnight courier, notice
shall be deemed given as of the first business day after sending. If mailed, the notice shall be deemed to have been given on the date which is three business days after mailing. If via facsimile, notice shall be deemed to have been given on the
date of transmission. Either party may change its address by giving written notice thereof to the other party. 
  
 Section 16.08. Partial Invalidity; Complete Agreement. If any provision of this Lease shall be held to be invalid, void or unenforceable,
the remaining provisions shall remain in full force and effect. This Lease represents the entire agreement between Landlord and Tenant covering everything agreed upon or understood in this transaction. There are no oral promises, conditions,
representations, understandings, interpretations or terms of any kind as conditions or inducements to the execution hereof or in effect between the parties. No change or addition shall be made to this Lease except by a written agreement executed by
Landlord and Tenant. 
  
 Section 16.09. Financial
Statements. During the Lease Term and any extensions thereof, Tenant shall provide to Landlord on an annual basis, within ninety (90) days following the end of Tenant’s fiscal year, a copy of Tenant’s most recent financial statements
(certified and audited if the Minimum Annual Rent hereunder exceeds $100,000) prepared as of the end of Tenant’s fiscal year. Such financial statements shall be signed by Tenant who shall attest to the truth and accuracy of the information set
forth in such statements. All financial statements provided by Tenant to Landlord hereunder shall be prepared in conformity with generally accepted accounting principles, consistently applied. 
  
 Section 16.10. Representations and Warranties. The undersigned
represent and warrant that (i) such party is duly organized, validly existing and in good standing (if applicable) in accordance with the laws of the state under which it was organized; and (ii) the individual executing and delivering this Lease has
been properly authorized to do so, and such execution and delivery shall bind such party. 
  
 Section 16.11. Option to Extend. 
  
 A. Grant and Exercise of Option. Provided (i) Tenant is not in default hereunder beyond any applicable cure period, (ii) the creditworthiness of Tenant is then acceptable to Landlord, (iii) Tenant originally
named herein or a Permitted Transferee remains in possession of and has been continuously operating in the entire Leased Premises for the term immediately preceding the Extension Term (defined below), and (iv) the current use of the Leased Premises
is substantially the same as Tenant’s Permitted Use hereunder, Tenant shall have the option to extend the original Lease Term (“Original Term”) for three (3) successive periods of five (5) years each (the “Extension
Term(s)”). The Extension Term shall be upon the same terms and conditions contained in the Lease for the Original Term except (i) this provision giving three (3) extension options shall be amended to reflect the remaining options to extend, if
any and (ii) the Minimum Annual Rent shall be adjusted as set forth below (the “Rent Adjustment”). Tenant shall exercise such option by (i) delivering to Landlord, no later than nine (9) months prior to the expiration of the Original Term
or, if applicable, the Extension Term, written notice of Tenant’s desire to extend the Original Term or, if applicable, the Extension Term, and (ii) delivering to Landlord within ten (10) business days of receipt of the Rent Adjustment, written
notice of its acceptance thereof. Unless Landlord otherwise agrees in writing, Tenant’s failure to timely exercise such option shall waive it and any succeeding option. Landlord shall notify Tenant of the amount of the Rent Adjustment no later
than ninety (90) days prior to the commencement of the applicable Extension Term. If Tenant properly exercises its option to extend, Landlord and Tenant shall execute an amendment to the Lease (or, at Landlord’s option, a new lease on the form
then in use by Landlord) reflecting the terms and conditions of the Extension Term. 
  
 B. Market Rent Adjustment. The Minimum Annual Rent for the applicable Extension Term shall be an amount equal to the Minimum Annual Rent then being quoted by Landlord to prospective tenants of the Building for
space of comparable size and quality and with similar or equivalent improvements as are found in the Building, and if none, then in similar buildings in the Park, excluding free rent and other concessions; provided, however, that in no event shall
the Minimum Annual Rent per square foot during any Extension Term be less than the highest Minimum Annual Rent per square foot payable during the immediately preceding term unless agreed to in writing by both parties. The Minimum Monthly Rent shall
be an amount equal to one-twelfth (1/12) of the Minimum Annual Rent for the Extension Term and shall be paid at the same time and in the same manner as provided in the Lease. 
  
 Section 16.12 Right of First Offer. Provided that (i) Tenant is not in Default hereunder beyond any applicable
cure period, (ii) the creditworthiness of Tenant is then acceptable to Landlord, (iii) Tenant 
  

 -10- 

 originally named herein or a Permitted Transferee remains in possession of and has been continuously operating in the
entire Leased Premises throughout the Lease Term, and (iv) the intended use of the Leased Premises is reasonably acceptable to Landlord, and subject to any rights of other tenants to the Offer Space, Landlord shall, before entering into a lease with
a third party for the space crosshatched on the attached Exhibit A-1 containing approximately 10,000 square feet of space (the “Offer Space”), notify Tenant in writing of the availability of such space for leasing (“Landlord’s
Notice”). Tenant shall have five (5) business days from its receipt of Landlord’s Notice to deliver to Landlord a written notice agreeing to lease such space on the terms and conditions contained in Landlord’s Notice. In the event
Tenant fails to notify Landlord of its agreement within said five (5) day period, such failure shall be conclusively deemed a rejection of the Offer Space, whereupon Tenant shall have no further rights with respect to the Offer Space and Landlord
shall be free to lease the Offer Space to a third party. The term for the Offer Space shall be coterminous with the term for the original Leased Premises; provided, however, that the minimum term for the Offer Space, shall be three (3) years and the
term for the original Leased Premises shall be extended, if necessary, to be coterminous with the term for the Offer Space. The Minimum Annual Rent for the Offer Space shall be equal to the rate which is then being quoted by Landlord to prospective
new tenants for the Offer Space, excluding free rent and other concessions, provided, however, that in no event shall Tenant’s Minimum Annual Rent per square foot for the Offer Space be less than the highest Minimum Annual Rent per square foot
payable during the original Lease Term for the original Leased Premises. The Minimum Annual Rent for the original Leased Premises during any such extended term shall be an amount equal to the Minimum Annual Rent then being quoted by Landlord to
prospective new tenants of the Building for space of comparable size and quality and with similar or equivalent improvements as are found in the Building, and if none, then in similar buildings in the Park, excluding free rent and other concessions,
provided, however, that in no event shall the Minimum Annual Rent per square foot during such extended term be less than the highest Minimum Annual Rent per square foot payable during the original Lease Term for the original Leased Premises. It is
understood and agreed that this offer shall not be construed to prevent any tenant in the Building from extending or renewing its lease. 
  
 Section 16.13. Signage. 
  
 A. Exterior Signage. Provided (i) Tenant is not in default hereunder beyond any applicable cure period, (ii) Tenant originally named herein remains
in possession of and has been continuously operating in the entire Leased Premises for the Lease Term, and (iii) Tenant complies with all zoning and other municipal and county regulations, Tenant may, at its sole cost and expense, erect a sign
(“Sign”) identifying its business upon the exterior of the Building. The location, style and size of the Sign shall be subject to Landlord’s prior written approval, such approval not to be unreasonably withheld; provided, however,
that the logo artwork on the Sign may contain color, but any letters must all be black. Tenant agrees to maintain such Sign in first-class condition and in compliance with all zoning and building codes throughout the Lease Term. Upon expiration or
early termination of the Lease Term, Tenant shall remove the Sign and repair all damage to the Building caused thereby. Landlord does not warrant the availability of such Sign to Tenant. Any language in the Lease notwithstanding, Tenant shall
indemnify and hold harmless Landlord from any and all liability for any loss of or damage or injury to any person (including death resulting therefrom) or property connected with or arising from the Sign or the rights granted herein. 
  
 B. Monument Signage. Landlord shall provide Tenant with Building
standard signage in the top position on the Building directory monument. The monument signage and monument shall be maintained and repaired by Landlord, and the cost of the same shall be included in Common Area Charges. 
  
 Section 16.14. Expansion Needs. Provided that (i) Tenant is not
in default hereunder beyond any applicable cure period, (ii) the creditworthiness of Tenant is then acceptable to Landlord, (iii) Tenant originally named herein or a Permitted Transferee remains in possession of and has been continuously operating
in the entire Leased Premises throughout the Lease Term, (iv) the current use of the Leased Premises is substantially the same as Tenant’s Permitted Use hereunder, and (v) subject to the availability of space, Landlord will use commercially
reasonable efforts to accommodate Tenant’s expansion needs in a building owned by Landlord within the Park, and notify Tenant as space within the Park becomes available, although Landlord in no way guarantees such expansion accommodation. If
Landlord and Tenant mutually agree and execute a new lease for such expansion space, Tenant shall immediately surrender the Leased Premises to Landlord in accordance with the terms and provisions of this Lease and each party shall be released from
further liability hereunder; provided, however, that such termination shall not affect any right or obligation arising prior to termination or which specifically survives the termination of this Lease. 
  

 -11- 

 IN WITNESS THEREOF, the parties hereto have executed this Lease as of the day and year first above
written. 
  

					
	 LANDLORD:

	
	 DUKE-WEEKS REALTY LIMITED PARTNERSHIP,
 an Indiana limited partnership

		
	By:	 	 Duke-Weeks Realty Corporation,
 its general partner

			
	 	 	 By:
	 	 /s/    Ramsey F. Maune        

	 	 	 	 	 Ramsey F. Maune
 Senior Vice President
 St. Louis Industrial

  

			
	 TENANT:

	
	 INCYTE PHARMACEUTICALS, INC.,
 a Delaware corporation

		
	By:	 	 /s/    John M. Vuko        

		
	 Printed:
	 	 John M. Vuko 

		
	 Title:
	 	 EVP – CFO

  
 STATE OF California             ) 
                                        
           ) SS: 
 COUNTY OF Santa Clara
      ) 
  
 Before me, a
Notary Public in and for said County and State, personally appeared John Vuko            , by me known and by me known to be the
            C.F.O.             of Incyte Pharmaceuticals, Inc., a Delaware corporation, who acknowledged the
execution of the above and foregoing Lease Agreements for and on behalf of said corporation. 
  
 WITNESS my hand and Notarial Seal this      22     day of
  February            , 2000. 
  

	
	
	/s/    Larry M. Chattoo        
	

	Notary Public

 [NOTARY SEAL] 

	
	
	Larry M. Chattoo        
	

	(Printed Signature)

  
 My Commission Expires: April
9, 2003                  
  
 My County of Residence: Santa Clara                    

  

 -12- 

 EXHIBIT A 
  

Parking Area 
  
 (DIAGRAM) 

 EXHIBIT B 
  

(DIAGRAM) 

 EXHIBIT C 
             West Port Center V 
  
 GENERAL CHARACTERISTICS 
  

	A.	Proposed building location is on a portion of Lot 3 located off the Duke-Weeks property at the Cul-de-Sac of Westport Center Drive in Maryland Heights, with a net acreage totaling
5.091 ± acres. 

  

	B.	The building configuration is a rectangle, approximately 125’ x 280’ totaling 35,000 SF, loaded on the rear side. The building is prepared for two (2) tenants at this
time, with the potential of an additional two (2) tenants, for a total of four (4) tenants. The anticipated tenant finish is 40% office and 60% warehouse. 

  

	C.	Automobile parking proposed: Approximately 100 car parking stalls, of which four (4) are handicap stalls. 

  
 GENERAL CONDITIONS 
  

	A.	We will provide all support personnel, utilities, and structures for on-site supervision. All permits, utility extensions, and tap fees will be provided. All testing for soils,
concrete, and structural connections will be provided. All final cleaning and set-up of base building systems will be provided. 

  

	B.	All architectural, civil, structural, mechanical, electrical engineering, landscape design and construction documents will be provided. 

  

	C.	Duke Construction has also included all geotechnical work such as soil borings, site and building survey, and compaction testing. 

  

	D.	Included is a complete labor and material guarantee for one (1) year. See Roofing System and joint sealers for additional warranty periods. 

  
 SITEWORK 
  

	A.	All site cleaning and preparation will be provided to accommodate all paving areas, building pad, and landscape area. All grading will be provided to ±0.1 of a foot and all
fill material under paving and slab area will be compacted to 95% maximum dry density according to standard Proctor ASTM 698. (All compaction densities will be designed to the recommendation of the soils engineer and will be adjusted once borings
are complete.) All excavation for foundations, site concrete, and site utilities will be provided. 

  

	B.	Granular fill shall be Type I stone, placed under slab-on-grade and used as interior backfill at the continuous foolings. The fill depth shall be 6” thick.

  

	C.	Heavy duty asphalt paving at the driveways and loading area shall be placed to a maximum distance of 90’ from building and have a base of Type I stone at 9” deep,
compacted to 95% maximum dry density according to standard Proctor ASTM 698. Type X asphalt base course shall be 3-1/2” deep, being one (1) layer of course crushed stone and sand with 4% asphalt. The Type C
wearing surface course shall be 1-1/2” deep, being one (1) layer of sand-stone composition with 4.5% to 5% asphalt. 

  

	D.	Standard duty asphalt paving at the parking areas shall have a base of Type I stone at 6” deep, compacted to 95% maximum dry density according to standard Proctor ASTM 698. The
Type C wearing surface course shall be 4” deep, being one (1) layer of sand-stone composition with 4.5% to 5% asphalt. 

  

	E.	4,000 psi concrete sidewalks form the parking lot to the potential office entries have been provided. 

  

	F.	All storm sewers for parking lots, docks, and roof drainage will be provided via underground pipe. The storm sewers shall discharge to the existing open channel drainage system
along the north side of the property. All required approvals will be provided. 

  

	G.	All utilities will extend to the building and final connections made for gas, electric, water, and sanitary. We will coordinate and provide access [two (2) empty conduits form
building to property line] for telephone and communication contractors. 

  

	H.	Combined water and fire protection services will be extended from a vault at the main on Westport Center Drive. The services will split into a domestic service and fire suppression
service at the building. 

	I.	Control joint sealant of the sidewalk is included. 

  

	J.	Exterior lighting will be provided to meet all zoning, local and state codes. See Electrical for description of site lighting. 

  

	K.	Erosion control will be provided as required for sloped areas and drainage swales. 

  

	L.	Included with the sitework is a versa-lock retaining wall to support the northwest corner of the car parking lot. 

  

	M.	Lawn irrigation has been included for the building and parking lot perimeter with the seeding, sod, planting, and landscaping work in accordance with local ordinances.

  
 FOUNDATIONS AND SLABS 
  

	A.	Building foundation systems are included in this proposal. We have included all wall and column foundations based upon 2,500 psf bearing capacity. 

  

	B.	The warehouse floor slab shall be 6” thick concrete, with a minimum compressive strength of 4,000 psi at 28 days and a minimum average flexural strength of 700 psi, on a
minimum of 6” compacted stone base. We request the actual floor loads be reviewed and verification of the slab design be based upon those loads. The slab will be cured and sealed, then finished with an application of Sealer/Hardener such as
Ashford Formula or ConSpec intraseal. 

  

	C.	Slab-on-grade will be placed per the following criteria; 

 FF = 35 and FL = 25 overall 
  

	D.	All floors will receive a smooth trowel finish and crack control joints will be installed at 13’-4” x 13’-4”. All construction joints shall be doweled at
24” on center. (Typical for 40’ x 40’ bays.) 

  
 STRUCTURAL 
  

	A.	Typical column bay spacing for the majority of the building shall be 40’ x 40’ (or 45’) and the nominal clear height for the building as measured to the lowest
horizontal structural member shall be 18 feet. 

  

	B.	The structural system shall be steel joist girders and open web bar joists supported by steel tube columns. 

  

	C.	Metal roof deck shall be white primed metal deck, welded in accordance to SDI criteria to resist all lateral forces. All other structural steel shall be painted with a gray,
rust-inhibiting shop primer. 

  

	D.	The structural steel framing shall be assembled at differing elevations to allow for the roof to be drained to a central valley. 

  

	E.	Design loads for roof framing is as follows: 

  

			
	 –  Live Loads
	  	 
	 Nominal Required Loading
	  	20#/SF
	 Collateral Loading
	  	5#/SF
	 –  Dead Loads
	  	 
	 Roof Ballas
	  	10#/SF
	 Membrane/Insulation
	  	2#/SF
	 Metal Deck
	  	2#/SF
	 Joists
	  	2#/SF
	 HVAC
	  	2#/SF
	 Sprinkler
	  	3#/SF
	 Electric
	  	2#/SF
	 	  	

	 	  	48#/SF

  

	E.	Miscellaneous metal items provided as follows: 

  

	 	1.	Roof equipment support frames for HVAC equipment as described in this proposal. 

  

	 	2.	Exterior roof ladder with locking cover. 

  

	 	3.	Cylindrical pipe bollards at drive through doors. 

  

	 	4.	Pipe alls at the drive-in doors. 

  
 ROOFING 
  

	A.	All roofing shall be warranted by the manufacturer for 10 years on labor and material. The warranty shall cover material only for an additional 10 years. Acceptable roofing
manufacturers are Firestone and Carlisle. 

  

	B.	The roof will be drained by Internal roof drains with overflows via scuppers at the perimeter parapet wall. The roof drains will discharge to the site storm sewer structures.
Entrance canopies shall have internal roof drains discharging to splash pads at finish grade. No overflows shall be required at the canopies. 

  

	C.	The roof membrane shall be a single-ply, 45 mil EPDM, loose laid, ballasted system. The roofing system shall have a UL Class A rating and a Factory Mutual Class 1 fire rating
(non-combustible). The stone ballast shall be applied at a uniform rate of 10 psf in the field, 12 psf at a 10’ wide perimeter band, and 15 psf in an area of 10’ x 10’ at the corners. The ballast shall be washed, rounded river gravel.

  

	D.	The roof insulation shall be rigid closed cell polylsocyanurate boards with a 1.8” thickness and a minimum density of 1.9 psf, a minimum 20 psi compressive strength and a total
assembly R value of 12.5. 

  

	E.	Coping, Flashing, and Curbs 

  

	 	1.	All membrane sidewall flashing shall be a minimum of 60 mil uncured EPDM material installed in accordance to the manufacturer’s details and design criteria.

  

	 	2.	All rooftop mechanical units and other miscellaneous rooftop equipment shall be mounted on an insulated curb. All piping and vents, which penetrate the roof membrane, will be
flashed using molded or fabricated EPDM or neoprene flashing. 

  

	 	3.	All sheetmetal copings and flashings shall be a minimum of 24 ga. prefinished galvanized steel, copings, if required, shall have a factory applied Kynar 500 finish and will be
designed and installed as per SMACNA standards. 

  
 EXTERIOR SKIN

  

	 	A.	Exterior walls of warehouse to consist of load bearing concrete panels. Exterior side of panels to have a latex paint finish with one (1) accent stripe around the entire perimeter.

  

	 	B.	Glazing at the perimeter office locations in the north, east and west walls shall be 6’-0’ (wide) x 6’-0’ (high) punched windows (3’ above grade) with a
medium performance, 1” insulated tinted glass. A total of twenty (20) windows are proposed – four (4) at each potential tenant’s office area, two (2) at the west wall and two (2) at the east wall. Aluminum framing for glass systems
will be black anodized. 

  

	 	C.	Aluminum entry doors shall be medium stile 3’- 0” (wide) and 7’-0” (high) in a storefront system with a black anodized finish frame for each of the four proposed
entryways. 

  

	 	D.	Concrete panels to receive two-part urethane joint sealant at all exterior and interior panel joints. The sealant shall be warranted for a period of five (5) years.

  

 -2- 

	 	E.	Entrance to the office areas shall be by means of bump-out canopies. The bump out canopies shall consist of a structural steel frame with metal deck, sloping roof to one comer with
a roof drain. The canopies shall receive steel stud framing and insulation with an elucobond facade including a parapet wall. Included at the entryway shall be an enhanced curtain wall glass element similar to the Westport Center 3 and 5 buildings.

  

 -3- 

 CONSTRUCTION ADDENDUM 
  
 In consideration of the execution of the above and foregoing Lease Agreement by and between DUKE-WEEKS REALTY LIMITED
PARTNERSHIP, an Indiana limited partnership (“Landlord”) and INCYTE PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”) executed under date of
                    , 2000 (hereinafter the “Lease”) the parties agree that the following shall be incorporated in whole and made a
part of the Lease as if stated verbatim therein. 
  
 Construction of Leased Premises. 
  
 1. A description of the standard shell of the Building is attached hereto as Addendum Exhibit A. Tenant has inspected the Leased Premises and accepts the Leased Premises “AS IS” (and “AS IS” condition shall be
defined as completion of all shell construction work as shown on Addendum Exhibit A attached hereto) without representation or warranty by Landlord. Tenant shall undertake and complete the work on the improvements described in Addendum
Exhibit B attached hereto (the “Plans”). Tenant may employ a contractor to construct the Leased Premises pursuant to the specifications set forth in the Plans provided that such construction of the Plans shall be subject to the terms
set forth herein. 
  
 2. Prior to the
commencement of construction, Tenant shall furnish to Landlord in writing a list of the names of the contractors, subcontractors and materialmen who shall provide materials, labor or other services for the Plans on the Leased Premises (“Sub
List”) provided, however, that Tenant is not required to include on the Sub List materialmen who shall provide less than One Thousand Dollars ($1,000.00) worth of materials, labor and services so long as such materialmen do not in the aggregate
provide more than five percent (5%) of the materials, labor, and services for the Plans. Tenant shall not employ any contractor or cause or allow the employment of any subcontractor to whom Landlord has a reasonable objection. The general contractor
hired by Tenant and approved by Landlord shall be hereinafter referred to as the “Contractor.” 
  
 3. Prior to the commencement of construction, Tenant shall deliver to Landlord a complete set of drawings and specifications for the
improvements to be so constructed within the Leased Premises. 
  
 4. Tenant shall furnish to Landlord a fully executed copy of the construction contract for completion of the Plans (the “Contract”) setting forth the following agreements of Tenant and Contractor:

  
 a. The Contractor shall not use any
contractors, subcontractors or materialmen required to be but not listed on the Sub List without first obtaining the written approval of Landlord, which approval shall not be unreasonably withheld. 
  
 b. The Contractor shall hire, at its expense (or at
Tenant’s expense), the roofer used by Landlord for construction of the Building if any portion of the Plans affect or contact the roof. If the roofer used by Landlord will perform such work only at a cost substantially in excess of the cost
quoted by other reputable roofers, respectively for such work, then Tenant may hire such other roofer to perform such work subject to the prior written approval of Landlord. Any such roofer shall be a pre-approved roofer of the manufacturer of the
roof and shall comply with all manufacturer requirements so as not to void any and all warranties applicable to the roof. 
  
 c. The Contractor, immediately after being awarded the Contract, shall prepare and submit to Landlord and Tenant an estimated progress
schedule for completion of the Plans. 
  
 d. The
Contractor shall be responsible for the wrongful or negligent acts and omissions of all its employees and all subcontractors, their agents and employees and all other persons performing any portion of the Plans. 
  
 e. The Contractor shall be responsible for and shall require
compliance with the construction documents associated with the Plans including but not limited to the technical drawings, schedules, diagrams, details and plans and specifications setting forth the requirements for the construction of the
improvements contemplated by the Plans. 
  
 f.
The Contractor shall give all notices and comply with all laws, ordinances, rules, regulations and orders of any public authority bearing on the performance of the Plans. The Contractor shall be responsible for maintaining and supervising all safety
precautions 

 and programs in connection with completion of the Plans and shall comply with all applicable laws,
ordinances, rules, regulations and orders of any public authority having jurisdiction for the safety of persons or property or to protect them from damage, injury or loss. 
  
 g. The Contractor at all times shall keep the Leased Premises, and the Building free from any unreasonable
accumulation of waste materials or rubbish caused by its operations. At the completion of the Plans, Contractor shall remove all of its waste materials and rubbish from and about the Leased Premises as well as its tools, construction equipment,
machinery and surplus materials. Contractors shall remove on a daily basis all of its waste materials, rubbish, tools, construction equipment, machinery and surplus materials from the portion of the Building which is outside of the Leased Premises;
provided, however, that Tenant may dispose of waste materials and rubbish in a receptacle approved by Landlord behind the Leased Premises in a location approved by Landlord and if Contractor fails to comply with this subsection, Landlord may cause
such removal at the expense of Tenant. The disposal of waste materials or rubbish, whether hazardous or non-hazardous, shall be done in compliance with all environmental laws, rules and regulations. 
  
 h. The Contractor shall purchase and maintain such insurance
as will protect it from claims for damages based on injuries to person(s), including death, or property which arise out of or result from the Contractor’s operations under the Contract or on the Leased Premises, whether such operations be by
itself or by any subcontractor, materialmen or anyone directly or indirectly employed by any of them. Landlord shall be named as an additional insured under such insurance. The limits of liability for injury or death to any one person shall be in an
amount of not less than Three Million Dollars ($3,000,000.00) and for injury or death of more than one person any one accident in an amount of not less than Three Million Dollars ($3,000,000.00) and for damages to property in an amount of not less
than Two Hundred Fifty Thousand Dollars ($250,000.00). Landlord shall be provided with a certificate of insurance evidencing such coverage prior to the commencement of construction. 
  
 i. The Contractor shall indemnify and hold harmless Landlord and his agents and employees from and against
all claims, damages, losses and expenses including attorneys’ fees and expenses arising out of or resulting from the performance of the Plans. 
  
 j. Contractor agrees that Landlord, his representatives or agents shall have the right to visit the site, during construction only, at
intervals appropriate to the state of construction to determine the progress and quality of the completion of the Plans and to determine in general if the Plans are proceeding in accordance with the Contract, the Lease and the estimated progress
schedule, but Landlord shall have no liability or responsibility therefor. 
  
 k. Concurrently upon any payment by Tenant to Contractor upon completion of the work contemplated by the Plans, Contractor shall furnish to Tenant releases and waivers of liens for all work performed pursuant to the
Contract. If a subcontractor refuses to furnish a release or waiver, Contractor shall furnish a bond satisfactory to Landlord to indemnify Landlord against any such lien or shall agree in writing to indemnify Landlord and hold him harmless from any
claim or lien respecting such subcontractor. Contractor shall also furnish an affidavit stating that all subcontractors and materialmen have executed such releases or waivers or indemnification agreements have been executed and that no other persons
or entities provided materials or labor to the Leased Premises; provided that if Contactor is unable to identify any materialmen, or secure such releases or waivers from any materialmen, who provided less than One Thousand Dollars ($1,000.00) worth
of materials, service or labor, Contractor shall indemnity Landlord and hold Landlord harmless from and against any claim for payment or lien of such materialmen. Notwithstanding the foregoing, Contractor must obtain lien waivers from subcontractors
and materialmen covering not less than ninety-five percent (95%) of the Plans performed in the Leased Premises. 
  
 l. Contractor shall have no right to enter upon any property other than the Leased Premises without Landlord’s consent and, in any
event, shall promptly repair any damage thereto. 
  
 m. Contractor shall also furnish to Tenant, with a copy to Landlord, an affidavit stating that all subcontractors and materialmen listed or required to be listed on the Sub List have executed such releases or waivers or indemnification
agreements have been executed and to the best of its knowledge that no other persons or entities provided materials or labor costing One Thousand Dollars ($1,000.00) or more to the Leased Premises, and agreeing to indemnify landlord from any and all
claims or damages arising from construction of the Plans 
  

 -2- 

 except those caused by the willful misconduct or gross negligence of Landlord, its agents or employees.

  
 5. Tenant shall indemnify and hold harmless
Landlord, its agents and employees from and against all claims, damages, losses and expenses including attorneys’ fees arising out of or resulting from Tenant’s or Contractors performance of or failure to perform the Plans or any term of
the Contract unless such claims, damages or losses are caused by the sole and direct willful misconduct or gross negligence of Landlord, its agents or employees. Tenant shall indemnify Landlord from any expenses, including attorneys’ fees,
incurred by Landlord in seeking to satisfy any claim against Contractor. 
  
 6. Concurrently with the disbursement of funds to Contractor by Tenant in connection with the completion of the Plans as set forth, Tenant shall furnish to Landlord releases and waivers of liens arising out of the
Contract which were furnished to Tenant by Contractor. Such releases or waivers of liens shall cover not less than ninety-five percent (95%) of the Plans performed in the Leased Premises and shall be in such form as may be reasonably designated by
Landlord. 
  
 7. Tenant shall require
Contractor’s compliance with the terms and conditions set forth in herein for satisfactory completion of the Plans. 
  
 8. Within thirty (30) days after substantial completion or final inspection, whichever is later, Tenant shall pay to Duke Construction
Limited Partnership a construction administration fee equal to Fifty Thousand Dollars ($50,000.00). It is expressly understood by the parties that neither Landlord nor Duke Construction Limited Partnership shall have any responsibilities for
supervision or inspection of the construction to be performed and completed within the Leased Premises. 
  
 9. Anytime Landlord’s approval is required hereunder, if Landlord’s approval or objection is not given within five (5) business
days of Landlord’s receipt of Tenant’s written request therefor, Landlord shall be deemed to have granted such approval. 
  
 10. Landlord shall make a minimum of six (6) scheduled project reviews within two (2) business days of Tenant’s written notice
requesting same at the following progress points: underground rough-in, rough framing, above ceiling rough-in, in-wall rough-in, pre-finishes and fixtures installation, and punchlist walk-through. 
  

 -3- 

 IN WITNESS THEREOF, the parties have executed this CONSTRUCTION ADDENDUM this
         day of             , 2000. 
  

					
	 “LANDLORD”

	
	 DUKE-WEEKS REALTY LIMITED PARTNERSHIP,
 an Indiana limited partnership

		
	By:	 	 Duke-Weeks Realty Corporation,
 its general partner

			
	 	 	 By:
	 	 /s/    Ramsey F. Maune        

	 	 	 	 	 Ramsey F. Maune
 Senior Vice President
 St. Louis Industrial

  

			
	 “TENANT”

	
	 INCYTE PHARMACEUTICALS, INC.,
 a Delaware corporation

		
	By:	 	 /s/    John M. Vuko        

		
	 Printed:
	 	 John M. Vuko 

		
	 Title:
	 	 EVP – CFO

  

 -4- 

 ADDENDUM EXHIBIT A 
             West Port Center V 
  
 GENERAL CHARACTERISTICS 
  

	A.	Proposed building location is on a portion of Lot 3 located off the Duke-Weeks property at the Cul-de-Sac of Westport Center Drive in Maryland Heights, with a net acreage totaling
5.091 ± acres. 

  

	B.	The building configuration is a rectangle, approximately 125’ x 280’ totaling 35,000 SF, loaded on the rear side. The building is prepared for two (2) tenants at this
time, with the potential of an additional two (2) tenants, for a total of four (4) tenants. The anticipated tenant finish is 40% office and 60% warehouse. 

  

	C.	Automobile parking proposed: Approximately 100 car parking stalls, of which four (4) are handicap stalls. 

  
 GENERAL CONDITIONS 
  

	A.	We will provide all support personnel, utilities, and structures for on-site supervision. All permits, utility extensions, and tap fees will be provided. All testing for soils,
concrete, and structural connections will be provided. All final cleaning and set-up of base building systems will be provided. 

  

	B.	All architectural, civil, structural, mechanical, electrical engineering, landscape design and construction documents will be provided. 

  

	C.	Duke Construction has also included all geotechnical work such as soil borings, site and building survey and compaction testing. 

  

	D.	Included is a complete labor and material guarantee for one (1) year. See Roofing System and joint sealers for additional warranty periods. 

  
 SITEWORK 
  

	A.	All site clearing and preparation will be provided to accommodate all paving areas, building pad, and landscape area. All grading will be provided to ±0.1 of a foot and all
fill material under paving and slab area will be compacted to 95% maximum dry density according to standard Proctor ASTM 698. (All compaction densities will be designed to the recommendation of the soils engineer and will be adjusted once borings
are complete.) All excavation for foundations, site concrete, and site utilities will be provided. 

  

	B.	Granular fill shall be Type I stone, placed under slab-on-grade and used as interior backfill at the continuous footings. The fill depth shall be 6” thick.

  

	C.	Heavy duty asphalt paving a the driveways and loading area shall be placed to a maximum distance of 90” from building and have a base of Type I stone at 9” deep, compacted
to 95% maximum dry density according to standard Proctor ASTM 698. Type X asphalt base course shall be 3- 1/2” deep, being one (1) layer of course crushed stone and sand with 4% asphalt. The Type C wearing surface course shall be 1- 1/2” deep, being one (1) layer of sand-stone composition with 4.5% to 5% asphalt. 

  

	D.	Standard duty asphalt paving at the parking area shall have a base of Type I stone at 6” deep, compacted to 95% maximum dry density according to standard Proctor ASTM 698. The
Type C wearing surface course shall be 4” deep, being one (1) layer of sand-stone composition with 4.5% to 5% asphalt. 

  

	E.	4,000 psi concrete sidewalks from the parking lot to the potential office entries have been provided. 

  

	F.	All storm sewers for parking lots, docks, and roof drainage will be provided via underground pipe. The storm sewer shall discharge to the existing open channel drainage system along
the north side of the property. All required approvals will be provided. 

  

	G.	All utilities will extend to the building and final connections made for gas, electric, water, and sanitary. We will coordinate and provide access [two (2) empty conduits from
building to property line] for telephone and communication contractors. 

  
 [Missing page 2 of Addendum Exhibit A.] 
  
 STRUCTURAL (continued): 
  

	E.	Miscellaneous metal items provided as follows: 

  

	 	1.	Roof equipment support frames for HVAC equipment as described in this proposal. 

  

	 	2.	Exterior roof ladder with locking cover. 

  

	 	3.	Cylindrical pipe bollards at drive through doors. 

  

	 	4.	Pipe sills at the drive-in doors. 

  
 ROOFING 
  

	A.	All roofing shall be warranted by the manufacturer for 10 years on labor and material. The warranty shall cover material only for an additional 10 years. Acceptable roofing
manufacturers are Firestone and Carlisle. 

  

	B.	The roof will be drained by internal roof drains with overflows via scuppers at the perimeter parapet wall. The roof drains will discharge to the elite storm sewer structures.
Entrance canopies shall have internal roof drains discharging to splash pads at finish grade. No overflows shall be required at the canopies. 

  

	C.	The roof membrane shall be a single-ply, 45 mil EPDM, loose laid, ballasted system. The roofing system shall have a UL Class A rating and a Factory Mutual Class 1 fire rating
(non-combustible). The stone ballast shall be applied at a uniform rate of 10 psf in the field, 12 psf at a 10’ wide perimeter band, and 15 psf in an area of 10’ x 10’ at the corners. The ballast shall be washed, rounded river gravel.

	D.	The roof insulation shall be rigid closed cell polylsocyanurate boards with a 1.8” thickness and a minimum density of 1.9 psf, a minimum 20 psi compressive strength and a total
assembly R value of 12.5. 

  

	E.	Coping, Flashing, and Curbs 

  

	 	1.	All membrane sidewall flashing shall be a minimum of 60 mil uncured EPDM material installed in accordance to the manufacturer’s details and design criteria.

  

	 	2.	All rooftop mechanical units and other miscellaneous rooftop equipment shall be mounted on an insulated curb. All piping and vents, which penetrate the roof membrane, will be
flashed using molded or fabricated EPDM or neoprene flashing. 

  

	 	3.	All sheetmetal copings and flashings shall be a minimum of 24 ga. prefinished galvanized steel, copings, if required, shall have a factory applied Kynar 500 finish and will be
designed and installed as per SMACNA standards. 

  
 EXTERIOR SKIN

  

	A.	Exterior walls of warehouse to consist of load bearing concrete panels. Exterior side of panels to have a latex paint finish with one (1) accent stripe around the entire perimeter.

  

	B.	Glazing at the perimeter office locations in the north, east and west walls shall be 6’-0’ (wide) x 6’-0’ (high) punched windows (3’ above grade) with a
medium performance, 1” insulated tinted glass. A total of twenty (20) windows are proposed – four (4) at each potential tenant’s office area, two (2) at the west wall and two (2) at the east wall. Aluminum framing for glass systems
will be black anodized. 

  

	C.	Aluminum entry doors shall be medium stile 3’-0” (wide) and 7’-0” (high) in a storefront system with a black anodized finish frame for each of the four proposed
entryways. 

  

	D.	Concrete panels to received two-part urethane joint sealant at all exterior and interior panel joints. The sealant shall be warranted for a period of five (5) years.

  

	E.	Entrance to the office areas shall be by means of bump-out canopies. The bump out canopies shall consist of a structural steel frame with metal deck, sloping roof to one corner with
a roof drain. The canopies shall receive steel stud framing and insulation with an elucobond facade including a parapet wall. Included at the entryway shall be an enhanced curtain wall glass element similar to the Westport Center 3 and 5 buildings.

  
 [Missing Page 4 of Addendum
Exhibit A.] 
  
 FIRE SUPPRESSION SYSTEMS (continued): 
  

	B.	Fire Protection Contractor will provide all calculations, installation drawings, etc., required to obtain Fire District and Building Code approvals and deliver them to the owner.
Each system shall be hydraulically calculated to meet the demand for the different areas of the building occupancy. 

  

	C.	Fire protection design and code compliance is based on open floor plan, for verification of design we will need storage lay-out, product listing and method of packaging of products
to be warehoused. 

  

	D.	Type of design: NFPA 231[c] requirements for 18’ high storage of Class II commodities. 

  

	E.	Type of heads: Brass uprights 

  
 ELECTRICAL 
  

	A.	Service Equipment 

  

	 	1.	Electrical service shall be provided by a ground-mounted transformer connected by Ameren/U.E. providing 480/277 volt, three-phase, four wire power. One (1) 100-amp, 480/277 volt
service with step down capabilities for 120/208 volt service will be installed at this time, referred to as the house panel. The house panel (100-amp panel) shall control all electrical items to be serviced outside of the building, and will be
located at the utility/service area as referred to in earlier sections. Four (4) additional conduits are to be installed for future 200-amp tenant services. 

  

	 	2.	All electrical work will be coordinated with other trades and shall comply with all applicable codes. 

  

	 	3.	Two (2) – 4” empty conduits will be provided from the north property line to the utility entrance area for communications service to the building.

  

	 	4.	One (1) – 4” empty conduit will be provided under the road towards the east property line for Ameren/UE’s incoming feeder cables. 

  

	 	5.	A fire alarm system shall be provided for the shell building space incorporating an auto-dialer mechanism. Monitoring services to be provided by Duke-Weeks Realty Property
Management. 

  

	B.	Interior Lighting 

  

	 	1.	Once (1) each, eight foot length, two-lamp fluorescent strip fixture will be provided at each overhead door in the building. 

  

	 	2.	Emergency lighting and exit signage shall be installed as required by the Building Code for the open shell warehouse areas. 

  

	 	3.	All lighting in the warehouse areas shall be switched from the house panel. 

  

	C.	Exterior Lighting 

  

	 	1.	The loading area shall be illuminated with metal halide wall packs mounted on exterior building walls. The dock area shall have a minimum maintained light level of .5 foot-candle to
50’ from the building. 

  

	 	2.	The automobile parking areas shall be illuminated by metal halide light fixtures, which are pole mounted, not to exceed 30’ in height above finish grade.

  

 -2- 

	 	3.	Soft HID fixtures will be installed at the recessed entryways to provide safety. Surface-mounted HID fixtures will be installed above all other man doors to the building.

  

	 	4.	All exterior lighting shall be controlled by photo-cells and time clocks. 

  

	D.	Power Requirements 

  

	 	1.	Power will be provided to all heating and fire protection equipment as outlined in this building description. 

  

 -3-License agreement btwn Xenogen and Board of Trustees of Leland Stanford Univ.

 EXHIBIT 10.13 
  
 [CONFIDENTIAL TREATMENT GRANTED. CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED
WITH THE COMMISSION.] 
  
 AGREEMENT 
  
 Effective as of May 5, 2000 (“Effective Date”), THE BOARD OF TRUSTEES OF THE LELAND
STANFORD JUNIOR UNIVERSITY, a body having corporate powers under the laws of the State of California (“STANFORD”), and Xenogen Corporation, a California corporation, having a principal place of business at 860 Atlantic Avenue, Alameda, CA
94501 (“LICENSEE”), agree as follows: 
  
 1. BACKGROUND 
  

	1.1	STANFORD has an assignment of the invention entitled “Using Light to Detect and Track Pathogens in Living Hosts”, from the laboratory of Dr. Christopher Contag
(“Invention[s]”), as described in Stanford Docket S94-044, and any Licensed Patent(s), as hereinafter defined, which may issue to such Invention(s). 

  

	1.2	STANFORD desires to have the Invention(s) perfected and marketed at the earliest possible time in order that products resulting therefrom may be available for public use and
benefit. 

  

	1.3	LICENSEE desires a license under said Invention(s), Licensed Materials and Licensed Patent(s) to develop, make, have made, use, import, offer for sale and sell Licensed Product(s)
in the Licensed Field of Use, and/or to sublicense said Invention(s), Licensed Materials and Licensed Patent(s) in the Licensed Field of Use. 

  

	1.4	LICENSEE and STANFORD have a prior agreement and amendments to the prior agreement for Invention(s), Licensed Materials and Licensed Patent(s). The parties acknowledge that pursuant
to the prior agreement, (i) LICENSEE has paid to STANFORD a noncreditable, nonrefundable license issue royalty of *** Dollars (***), and (ii) LICENSEE has paid to STANFORD *** for reimbursement of past patent expenses. The prior agreement and
amendments are superseded by this Agreement. 

  

	1.5	The Invention(s) was made in the course of research supported by one or more of the following: the American Foundation for AIDS Research, the National Institutes of Health, The
United States Public Health Service, and the Office of Naval Research. 

  
 2. DEFINITIONS 
  

	2.1	“Licensed Patent(s)” means any (i) U.S. patent application Serial Number 270,631 filed July 1, 1994 (issued on July 22, 1997 as U.S. Patent Number 5,650,135), (ii) all
divisions, substitutions, and continuations in whole or part of any of the preceding, (iii) all foreign patent applications corresponding to or claiming priority from (including International Application Number PCT/US95/15040 and all national
applications claiming priority therefrom), and (iv) all U.S. and foreign patents issuing on any of the preceding, including patents of addition, reexaminations, reissues and extensions. 

  
 *** Confidential treatment granted 

	2.2	“Licensed Materials” means those biological materials listed in Exhibit A, and such other agreed materials as STANFORD may provide to LICENSEE during the term of this
Agreement, which shall be added to Exhibit A. 

  

	2.3	“Licensed Product(s)” means any product or part thereof in the Licensed Field of Use, the manufacture, use, or sale of which: 

  

	 	(a)	Is covered by a valid claim of an issued, unexpired Licensed Patent(s) directed to the Invention(s). A claim of an issued, unexpired Licensed Patent(s) shall be presumed to be valid
unless and until it has been held to be invalid or unenforceable by a final judgment of a court of competent jurisdiction from which no appeal can be or is taken or is disclaimed, or rejected or found invalid or unenforceable in a reissue
application or re- examination proceeding or otherwise; 

  

	 	(b)	Is covered by any claim being prosecuted in a pending application directed to the Invention(s); or 

  

	 	(c)	Incorporates any of the Licensed Materials. 

  

	2.4	“Net Sales” means the gross revenue derived by LICENSEE from Licensed Product(s), less the following items but only insofar as they actually pertain to the disposition of
such Licensed Product(s) by LICENSEE, are included in such gross revenue, and are separately billed: 

  

	 	(a)	Import, export, excise and sales taxes, and custom duties; 

  

	 	(b)	Costs of insurance, packing, and transportation from the place of manufacture to the customer’s premises or point of installation; 

  

	 	(c)	Costs of installation at the place of use; and 

  

	 	(d)	Credit for returns, allowances, or trades. 

  

	2.5	“Licensed Field of Use” means all uses. 

  

	2.6	“Licensed Territory” means worldwide. 

  

	2.7	“Exclusive” means that, subject to Article 4, STANFORD shall not grant further licenses in the Licensed Territory in the Licensed Field of Use. 

 
 3. GRANT 
  

	3.1	STANFORD hereby grants and LICENSEE hereby accepts an Exclusive license under the Licensed Patents and Licensed Materials to make, have made, import, use, lease, sell and offer for
sale and otherwise commercialize and exploit Licensed Products in the Licensed Territory, and practice any method process or procedure within the Licensed Patents in the Licensed Territory. 

  

	3.2	Said license is Exclusive, including the right to sublicense pursuant to Article 13, in the Licensed Field of Use for a term commencing as of July 1, 1997 and ending on the
expiration of the last to expire of the Licensed Patent(s). 

  

	3.3	STANFORD shall have the right to practice the Invention(s) and use the Technology for its own bona fide research, including sponsored research and collaborations. STANFORD shall
have the right to publish any information included in Licensed Materials and Licensed Patent(s). 

  

	3.4	Not withstanding Section 3.1 above, the license granted to XENOGEN for those Licensed Materials which are ***, shall be non-exclusive. This Section 3.4 shall have no effect on the
Exclusive License granted herein for (i) the Licensed Patents and (ii) all Licensed Materials and/or Licensed Product(s) other than the ***. 

  
 *** Confidential treatment granted 
  

 -2- 

 4. GOVERNMENT RIGHTS 
  
 This Agreement is subject to all of the terms and conditions of Title 35 United States Code
Sections 200 through 204, including an obligation that Licensed Product(s) sold or produced in the United States be “manufactured substantially in the United States,” and LICENSEE agrees to take all reasonable action necessary on its part
as licensee to enable STANFORD to satisfy its obligation thereunder, relating to Invention(s), provided that STANFORD has provided LICENSEE with written notice of each such obligation STANFORD must meet and a description of each act LICENSEE must
take to comply with such obligation. 
  
 5.
DILIGENCE 
  

	5.1	As an inducement to STANFORD to enter into this Agreement, LICENSEE agrees to use all reasonable efforts and diligence to sublicense the Licensed Patent(s) and/or to proceed with
the development, manufacture, and sale or lease of Licensed
 Product(s). LICENSEE further agrees to diligently develop markets for the Licensed Patent(s) and/or Licensed Product(s). LICENSEE agrees that STANFORD may terminate this Agreement if,
prior to July 1, 2000, LICENSEE has neither sublicensed the Licensed Patent(s) nor made a Licensed Product(s) available for commercial sale. LICENSEE further agrees that STANFORD may terminate this Agreement if, for any period of one (1) full year
after first sublicense or commercial sale, LICENSEE has neither maintained at least one sublicense in force nor sold any Licensed Product(s). 

  

	5.2	Progress Report – On or before September 1 of each year until LICENSEE markets a Licensed Product(s) or grants a sublicense under the Licensed Patent(s), LICENSEE shall
make a written annual report to STANFORD covering the preceding year ending June 30, regarding the progress of LICENSEE toward commercial use of Licensed Product(s) or sublicensing of Licensed 

	 	Patent(s). Such report shall include, as a minimum, information sufficient to enable STANFORD to satisfy reporting requirements of the U.S. Government and for STANFORD to ascertain
progress by LICENSEE toward meeting the diligence requirements of this Article 5. 

  

	5.3	In the event that LICENSEE fails to make available for commercial sale a Licensed Product based on a particular Licensed Material listed in Exhibit A for any period of one (1) full
year after July 1, 2000, STANFORD may convert the Exclusive License granted to LICENSEE solely with respect to that particular Licensed Material (hereinafter, the “Uncommercialized Material”) to a non-exclusive license, provided that
STANFORD gives LICENSEE written notice of such intent and LICENSEE fails to commercialize the Uncommercialized Material within ninety (90) days of such notice. STANFORD agrees that nothing in this Section 5.3 shall have any effect on the Exclusive
License granted to LICENSEE under any Licensed Material(s) or Licensed Product(s) other than the Uncommercialized Material. STANFORD further agrees that nothing in this Section 5.3 shall have any effect on the Exclusive License granted to LICENSEE
under the Licensed Patent(s) in Article 3 herein. 

  
 6. ROYALTIES 
  

	6.1	Beginning July 1, 2000, and each July 1 thereafter, LICENSEE shall pay to STANFORD a yearly royalty of ***. Said yearly royalty payments are nonrefundable, but they are creditable
against earned royalties to the extent provided in Paragraph 6.4. 

  

	6.2	In addition, LICENSEE shall pay STANFORD earned royalties of *** of Net Sales. 

  

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	6.3	In the event that a Licensed Product is sold in combination with or containing one or more products or components, then Net Sales on the combination product shall be calculated
using one of the following methods: 

  

	 	(a)	By multiplying the net selling price of the combination product by the fraction A/A+B, where A is the gross selling price, during the royalty-paying period being considered, of the
Licensed Product sold separately, and B is the gross selling price, during the royalty period in question, of the other products or components sold separately; or 

  

	 	(b)	In the event that no such separate sales are made of the Licensed Product, Net Sales on the combination product for royalty determination shall be as reasonably allocated between
such Licensed Product and the other active products or components, based on their relative importance and proprietary protection, as agreed by the parties. If the parties fail to reach agreement such allocation shall be submitted to binding
arbitration. 

  

	6.4	Creditable payments under this Agreement shall be an offset to LICENSEE against up to *** of each earned royalty payment which LICENSEE would be required to pay pursuant to
Paragraph 6.2 until the entire credit is exhausted. 

  

	6.5	If this Agreement is not terminated in accordance with other provisions hereof, LICENSEE’s obligation to pay royalties hereunder shall continue for so long as LICENSEE, by its
activities would, but for the license granted herein, infringe a valid claim of an unexpired Licensed Patent(s) of STANFORD covering said activity. 

  

	6.6	The royalty on sales in currencies other than U.S. Dollars shall be calculated using the appropriate foreign exchange rate for such currency quoted by the Bank of America (San
Francisco) foreign exchange desk, on the close of business on the last banking day of each calendar quarter. Royalty payments to STANFORD shall be in U.S. Dollars. All non-U.S. taxes related to royalty payments shall be paid by LICENSEE and are not
deductible from the payments due STANFORD. 

  
 7. ROYALTY REPORTS, PAYMENTS, AND ACCOUNTING 
  

	7.1	Quarterly Earned Royalty Payment and Report – Beginning with the first sale of a Licensed Product(s) or the first sublicense, LICENSEE shall make written reports (even
if there are no sales or sublicenses) and earned royalty payments to STANFORD within thirty (30) days after the end of each calendar quarter. This report shall state the number, description, and aggregate Net Sales of Licensed Product(s) during such
completed calendar quarter, and resulting calculation pursuant to Paragraph 6.2 of earned royalty payment due STANFORD for such completed calendar quarter. The report shall also state the number and description of, and fees due under, sublicenses
issued by Xenogen during such completed calendar quarter, and resulting calculation pursuant to Paragraph 13.5 of earned royalty payment due STANFORD for such completed calendar quarter. Concurrent with the making of each such report, LICENSEE shall
include payment due STANFORD of royalties for the calendar quarter covered by such report. 

  

	7.2	Accounting – LICENSEE agrees to keep and maintain records for a period of three (3) years showing the sublicenses granted and the manufacture, sale, use, and other

  
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 disposition of products sold or otherwise disposed of under the license herein granted. Such records will
include general ledger records showing cash receipts and expenses, and records which include production records, customers, serial numbers, and related information in sufficient detail to enable the royalties payable hereunder by LICENSEE to be
determined. LICENSEE further agrees to permit its books and records to be examined by STANFORD from time to time to the extent necessary to verify reports provided for in Paragraph 7.1. Such examination is to be made by STANFORD or its designee, at
the expense of STANFORD, except in the event that the results of the audit reveal an underreporting of royalties due STANFORD of five percent (5%) or more, then the audit costs shall be paid by LICENSEE. 
  
 8. NEGATION OF WARRANTIES 
  

	8.1	Nothing in this Agreement is or shall be construed as: 

  

	 	(a)	A warranty or representation by STANFORD as to the validity or scope of any Licensed Patent(s); 

  

	 	(b)	A warranty or representation that anything made, used, sold, or otherwise disposed of under any license granted in this Agreement is or will be free from infringement of patents,
copyrights, and other rights of third parties; 

  

	 	(c)	An obligation to bring or prosecute actions or suits against third parties for infringement, except to the extent and in the circumstances described in Article 12;

  

	 	(d)	Granting by implication, estoppel, or otherwise any licenses or rights under patents or other rights of STANFORD or other persons other than Licensed Patent(s), regardless of
whether such patents or other rights are dominant or subordinate to any Licensed Patent(s); or 

  

	 	(e)	An obligation to furnish any technology or technological information. 

  

	8.2	Except as expressly set forth in this Agreement, STANFORD MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. THERE ARE NO EXPRESS OR IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF THE LICENSED PRODUCT(S) WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OR ANY OTHER EXPRESS OR IMPLIED WARRANTIES. 

 

	8.3	LICENSEE agrees that nothing in this Agreement grants LICENSEE any express or implied license or right under or to U.S. Patent 4,656,134 “Amplification of Eucaryotic
Genes” or any patent application corresponding thereto. 

  
 9. INDEMNITY 
  

	9.1	LICENSEE agrees to indemnify, hold harmless, and defend STANFORD, Stanford Hospital and Clinics and Stanford Health Services and their respective trustees, officers, employees,
students, and agents against any and all claims for death, illness, personal injury, property damage, and improper business practices arising out of the manufacture, use, sale, or other disposition of Invention(s), Licensed Patent(s), Licensed
Product(s), or Licensed Materials by LICENSEE or sublicensee(s), or their customers. 

  

	9.2	STANFORD shall not be liable for any indirect, special, consequential or other damages whatsoever, whether grounded in tort (including negligence), strict liability, contract or

  
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 otherwise. STANFORD shall not have any responsibilities or liabilities whatsoever with respect to
Licensed Products(s). 
  

	9.3	LICENSEE shall at all times comply, through insurance or self-insurance, with all statutory workers’ compensation and employers’ liability requirements covering any and
all employees with respect to activities performed under this Agreement. 

  

	9.4	In addition to the foregoing, LICENSEE shall maintain, during the term of this Agreement, Comprehensive General Liability Insurance, including Products Liability Insurance, with
reputable and financially secure insurance carrier(s) to cover the activities of LICENSEE and its sublicensee(s). Commencing with the introduction of Licensed Product(s) into humans for any purpose, including clinical trials, such insurance shall
provide minimum limits of liability of Five Million Dollars ($5,000,000) and shall include STANFORD, Stanford University Hospital, their trustees, directors, officers, employees, students, and agents as additional insureds. Such insurance shall be
written to cover claims incurred, discovered, manifested, or made during or after the expiration of this Agreement. At STANFORD’s request, LICENSEE shall furnish a Certificate of Insurance evidencing primary coverage and requiring thirty (30)
days prior written notice of cancellation or material change to STANFORD. LICENSEE shall advise STANFORD, in writing, that it maintains excess liability coverage (following form) over primary insurance for at least the minimum limits set forth
above. All such insurance of LICENSEE shall be primary coverage; insurance of STANFORD or Stanford Health Services shall be excess and noncontributory. 

  
 10. MARKING 
  

	10.1	Prior to the issuance of any patents on any Licensed Products, LICENSEE agrees to mark all Licensed Products (or their containers or labels) covered by such patents and made, sold,
or otherwise disposed of by LICENSEE under the license granted in this Agreement with the words “Patent Pending,” and following the issuance of one or more patents, with the numbers of such patent(s). 

  

	10.2	STANFORD agrees to provide LICENSEE with notice of all STANFORD patent applications filed (and all STANFORD patents issuing) on any Licensed Products based on Licensed Materials
listed in Exhibit A within 30 days of (i) the filing of such patent applications, and (ii) issuance of such patents. No such notice is required from STANFORD to LICENSEE for patents and patent applications that are included in the Licensed
Patent(s). 

  
 11. STANFORD
NAMES AND MARKS 
  
 Except in connection with the identification of the
source of Invention(s), Licensed Patent(s) and Licensed Products(s), LICENSEE agrees not to identify STANFORD in any promotional advertising or other promotional materials to be disseminated to the public or any portion thereof or to use the name of
any STANFORD faculty member, employee, or student or any trademark, service mark, trade name, or symbol of STANFORD or the Stanford Health Services, or that is associated with either of them, without STANFORD’s prior written consent.
Notwithstanding the above, LICENSEE may use in any manner it deems fit the name(s) of STANFORD faculty members or employees who are inventors on the Inventions, Licensed Patents and/or Licensed Products, and who are employees of or have a consulting
agreement with LICENSEE (“Affiliates”), provided that LICENSEE obtains the voluntary consent of the Affiliates for such 
  
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 use. STANFORD agrees that the names of the Affiliates and Affiliates’ connection with STANFORD will appear in
disclosure documents required by securities laws, and in other regulatory and administrative filings in the ordinary course of LICENSEE’S business. Any use of STANFORD’s name shall be limited to statements of fact and shall not imply
endorsement of LICENSEE’s products or services. 
  
 12. PATENT PROTECTION AND INFRINGEMENT 
  

	12.1	LICENSEE shall have the primary responsibility for the prosecution, filing and maintenance of all Licensed Patents, including the conduct of all interference, opposition, nullity
and revocation proceedings, using counsel of its choice; provided, however, that STANFORD shall have reasonable opportunity to advise and consult with LICENSEE on such matters and may instruct LICENSEE to take such action as STANFORD reasonably
believes necessary to protect the Licensed Patent(s). Should LICENSEE elect to abandon any patent or patent application in any country, it shall give timely notice to STANFORD, who may continue prosecution or maintenance, at its sole expense and
LICENSEE shall have not further rights with respect to such patent application or patent in such country. In the event that a conflict arises with respect to patent counsel selected by LICENSEE, STANFORD may, with just cause and after consulting
with LICENSEE, select new patent counsel reasonably acceptable to LICENSEE. 

  

	12.2	Payment of all reasonable fees and costs relating to the filing, prosecution and maintenance of all patent applications and patents within the Licensed Patent(s), including
interference and/or opposition, nullity and revocation proceedings, shall be the responsibility of LICENSEE. STANFORD shall direct the patent counsel to send invoices for such fees and costs directly to LICENSEE with a copy to STANFORD, and LICENSEE
shall pay such patent counsel directly amounts due. 

  

	12.3	STANFORD shall promptly inform LICENSEE of any suspected infringement of any Licensed Patent by a third party and any declaratory judgment filed with respect to any Licensed Patent.
LICENSEE shall have the initial right but not the obligation, at its expense, to initiate and control any proceeding relating to any infringement by a third party of any Licensed Patents, any declaratory action alleging invalidity or noninfringement
of any Licensed Patents, or any interference, opposition, nullity or revocation proceeding relating to any Licensed Patents (“a Protective Action”). In pursuing any such Protective Action, LICENSEE shall provide STANFORD with material
information related to the Protective Action, and shall have the right, but not the obligation, to join STANFORD as a party to the Protective Action, at LICENSEE’s expense. STANFORD shall have the right to participate in the Protective Action
with its own counsel at its own expense. If LICENSEE brings a Protective Action it may enter into a settlement, consent judgment or other voluntary final disposition of such Protective Action, at its sole option, and any damages recovered by a
Protective Action shall be used first to reimburse LICENSEE for the costs (including attorney’s and expert fees) of such Protective Action actually paid by LICENSEE, and the remainder, if any, shall be retained by LICENSEE, except LICENSEE
shall pay STANFORD two percent (2%) of said remainder, provided, if STANFORD joins in any Protective Action at its inception and shares equally in the costs (including attorney’s and expert fees) incurred in its 

  
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 conduct, in the event of any recovery each party shall be reimbursed for its expenses incurred in such
Protective Action and STANFORD and LICENSEE shall equally share any remainder. 
  

	12.4	If LICENSEE, or its sublicensee pursuant to Section 13.6, decides not to bring a Protective Action after LICENSEE receives notice from STANFORD pursuant to Section 12.3, LICENSEE
shall inform STANFORD and STANFORD may institute a Protective Action. In such event, STANFORD shall control such Protective Action, including any settlement, consent judgment or other voluntary final disposition thereof at its sole option, and shall
bear the entire cost of such Protective Action and shall be entitled to retain the entire amount of any recovery or settlement. STANFORD may, at its expense, join LICENSEE as a party to such a Protective Action and LICENSEE shall cooperate
reasonably with STANFORD in any such Protective Action, at STANFORD’s expense. 

  

	12.5	Should either party commence a Protective Action under this Section 12 and thereafter elect to abandon the same, it shall give timely notice to the other party who may continue
prosecution of such Protective Action; provided, however, that the sharing of past and future expenses and any recovery in such Protective Action shall be as mutually agreed by the parties. 

  

	12.6	In any Protective Action under this Section 12, the other party hereto shall, at the request and expense of the party initiating such Protective Action, cooperate in all respects
and, to the extent possible, have its employees testify when requested and make available relevant records, papers, information, samples and the like. 

  
 13. SUBLICENSE(S) 
  

	13.1	LICENSEE may grant sublicense(s) during the Exclusive period. LICENSEE may sublicense all or a portion of the rights granted to it pursuant to this Agreement, subject to the
conditions of this Article 13. A “Patent Sublicense” means a sublicense which grants all or a portion of the rights under the Licensed Patent(s) to practice any method, process or procedure claimed therein in all or a part of the Licensed
Territory. It is understood that a Patent Sublicense shall not grant any rights to lease, sublicense, sell, offer for sale, or otherwise commercially dispose of any Licensed Products in any part of the Licensed Territory. A “Products
Sublicense” means a sublicense which grants all or a portion of the rights to lease, sell, offer for sale and otherwise commercially exploit Licensed Products in all or a part of the Licensed Territory. It is understood that a Products
Sublicense may also include rights under the Licensed Patent(s). 

  

	13.2	If LICENSEE is unable or unwilling to serve or develop a potential market or market territory for which there is a willing sublicensee(s), LICENSEE will, at STANFORD’s request,
negotiate in good faith a sublicense(s) hereunder. 

  

	13.3	Any sublicense(s) granted by LICENSEE under this Agreement shall be subject and subordinate to terms and conditions of this Agreement, except: 

  

	 	(a)	Sublicense terms and conditions shall reflect that any sublicensee(s) shall not further sublicense without the written consent of STANFORD, which consent shall not be unreasonably
withheld; and 

  

	 	(b)	The earned royalty rate specified in the sublicense(s) may be at higher rates 

  

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 than the rates in this Agreement 
  
 Such sublicense(s) (including, without limitation, any non-exclusive sublicenses) shall remain in effect in the event of any
termination of this Agreement, provided that upon request by STANFORD, such sublicensee agrees in writing to be bound by the applicable terms of this Agreement. All Products Sublicenses shall expressly include the provisions of Articles 7, 8, and 9
for the benefit of STANFORD. All Patent Sublicenses granted to commercial or for-profit entities shall expressly include the provisions of Articles 8 and 9 for the benefit of STANFORD. 
  

	13.4	LICENSEE agrees to provide STANFORD a copy of any sublicense granted pursuant to this Article 13. 

  

	13.5	LICENSEE will pay to STANFORD *** of all non-equity payments received by LICENSEE from its sublicensee(s) for the grant of a sublicense to practice the Licensed Patent(s), excluding
those made under consulting or service agreements. In addition, LICENSEE shall pay to STANFORD *** of all earned royalty income received by LICENSEE from each sublicense from the sale of Licensed Product(s); provided however, that LICENSEE shall pay
to STANFORD no less than *** and no more than *** of such royalty income. 

  

	13.6	With the prior written consent of LICENSEE, and the prior written consent of STANFORD, which shall not be unreasonably withheld, a sublicensee may bring a Protective Action, subject
to the provisions of Section 12.3. 

  
 14. TERMINATION 
  

	14.1	LICENSEE may terminate this Agreement by giving STANFORD notice in writing at least thirty (30) days in advance of the effective date of termination selected by LICENSEE.

  

	14.2	STANFORD may terminate this Agreement if LICENSEE: 

  

	 	(a)	Is in default in payment of royalty or providing of reports; 

  

	 	(b)	Is in breach of any provision hereof; or 

  

	 	(c)	Provides any false report; 

  
 and LICENSEE fails to remedy any such default, breach, or false report within thirty (30) days after written notice thereof by STANFORD. 
  

	14.3	In the event of any termination of this Agreement, LICENSEE shall provide for the transfer to STANFORD of all obligations accrued or accruable after such termination in any active
sublicense(s) issued pursuant to Section 13. Such obligations shall include the payment of any royalties specified in such sublicense(s) that have accrued after termination of this Agreement. 

  

	14.4	Surviving any termination are: 

  

	 	(a)	LICENSEE’s obligation to pay royalties accrued or accruable; 

  

	 	(b)	Any cause of action or claim of LICENSEE or STANFORD, accrued or to accrue, because of any breach or default by the other party; and 

  

	 	(c)	The provisions of Articles 7, 8, 9, 16 and 20, Sections 13.3, 14.3, and 14.4 and any other provisions that by their nature are intended to survive. 

  
 15. ASSIGNMENT 
  
 Neither party may assign this Agreement or any part hereof without the express written
consent of the other, which consent shall not be unreasonably withheld; provided, however, LICENSEE 
  
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 may assign this Agreement or any portion hereof to an affiliate or to a successor of all or substantially all its
business relating to the Licensed Patent(s) without the written consent of STANFORD and shall provide STANFORD notice of any such assignment. 
  
 16. ARBITRATION 
  

	16.1	Any controversy arising under or related to this Agreement, and any disputed claim by either party against the other under this Agreement excluding any dispute relating to patent
validity or infringement arising under this Agreement, shall be settled by arbitration in accordance with the Licensing Agreement Arbitration Rules of the American Arbitration Association. 

  

	16.2	Upon request by either party, arbitration will be by a third party arbitrator mutually agreed upon in writing by LICENSEE and STANFORD within thirty (30) days of such arbitration
request. Judgment upon the award rendered by the arbitrator shall be final and nonappealable and may be entered in any court having jurisdiction thereof. 

  

	16.3	The parties shall be entitled to discovery in like manner as if the arbitration were a civil suit in the California Superior Court. The Arbitrator may limit the scope, time and/or
issues involved in discovery. 

  

	16.4	Any arbitration shall be held at Stanford, California, unless the parties hereto mutually agree in writing to another place. 

  
 17. NOTICES 
  
 All notices under this Agreement shall be deemed to have been fully given when done in
writing and deposited in the United States mail, registered or certified, and addressed as follows: 
  

			
	 To STANFORD:
	  	Office of Technology Licensing
	 	  	Stanford University
	 	  	900 Welch Road, Suite 350
	 	  	Palo Alto, CA 94304-1850
		
	 	  	Attention:    Director
		
	 To LICENSEE:
	  	Xenogen Corporation
	 	  	860 Atlantic Avenue
	 	  	Alameda, CA 94501
		
	 	  	Attention:    President

  
 Either party may change its address
upon written notice to the other party. 
  
 18. WAIVER 
  
 None of the terms of this Agreement can be waived
except by the written consent of the party waiving compliance. 
  
 19. APPLICABLE LAW 
  
 This Agreement
shall be governed by the laws of the State of California applicable to agreements negotiated, executed and performed wholly within California. 
  
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 20. CONFIDENTIALITY 
  
 STANFORD shall maintain this Agreement and the reports and any information provided by
LICENSEE to STANFORD pursuant to Articles 5, 7 and 13 in confidence and shall be treated with at least the same degree of care as used to maintain secrecy of STANFORD’s other confidential information. STANFORD may, however, disclose to third
parties total annual royalty payments and general statistical information regarding payments made hereunder in the context of disclosing statistical information pertaining to the performance of the STANFORD Office of Technology Licensing.

  
 21. Entire Agreement 
  
 This Agreement constitutes the entire agreement between LICENSEE and STANFORD and supersedes
all prior communications, understandings and agreements with respect to the subject matter of this Agreement. This Agreement may not be amended except with a written agreement signed by LICENSEE and STANFORD. 
  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate originals by their duly
authorized officers or representatives. 
  

			
	 THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY

		
	 Signature
	 	 /s/    Katharine Ku        

	 	 	

	 Name
	 	 Katharine Ku

	 	 	

	 Title
	 	 Director, Technology Licensing

	 	 	

	 Date
	 	 May 8, 2000

	 	 	

	
	LICENSEE
		
	 Signature
	 	 /s/    David W. Carter        

	 	 	

	 Name
	 	 David W. Carter

	 	 	

	 Title
	 	 Chairman and Co-CEO

	 	 	

	 Date
	 	 
	 	 	

  
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 Exhibit A 
  
 *** 
  
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