Document:

Office Lease between Sierra Point Development and Registrant dated 1/05/04.

 EXHIBIT 10.9 
  
 OFFICE LEASE 
  
  
  
 SIERRA POINT DEVELOPMENT 
  
 GAINEY ONE TRUST,

  
 a Maryland real estate investment trust, 
  
 as Landlord, 
  
 and 
  
  
 COTHERIX, INC., 
  
 a Delaware corporation, 
  
 as Tenant. 

 SIERRA POINT DEVELOPMENT 
  
 INDEX 
  

					
	 ARTICLE

	 	 SUBJECT MATTER

	  	PAGE

			
	ARTICLE 1	 	 PREMISES, BUILDING, PROJECT, AND COMMON AREAS
	  	5
			
	ARTICLE 2	 	 LEASE TERM
	  	6
			
	ARTICLE 3	 	 BASE RENT
	  	7
			
	ARTICLE 4	 	 ADDITIONAL RENT
	  	8
			
	ARTICLE 5	 	 USE OF PREMISES
	  	17
			
	ARTICLE 6	 	 SERVICES AND UTILITIES
	  	18
			
	ARTICLE 7	 	 REPAIRS
	  	20
			
	ARTICLE 8	 	 ADDITIONS AND ALTERATIONS
	  	21
			
	ARTICLE 9	 	 COVENANT AGAINST LIENS
	  	23
			
	ARTICLE 10	 	 INSURANCE
	  	24
			
	ARTICLE 11	 	 DAMAGE AND DESTRUCTION
	  	27
			
	ARTICLE 12	 	 NONWAIVER
	  	29
			
	ARTICLE 13	 	 CONDEMNATION
	  	30
			
	ARTICLE 14	 	 ASSIGNMENT AND SUBLETTING
	  	30
			
	ARTICLE 15	 	SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL OF TRADE FIXTURES	  	35
			
	ARTICLE 16	 	 HOLDING OVER
	  	36
			
	ARTICLE 17	 	 ESTOPPEL CERTIFICATES
	  	36
			
	ARTICLE 18	 	 SUBORDINATION
	  	37
			
	ARTICLE 19	 	 DEFAULTS; REMEDIES
	  	38
			
	ARTICLE 20	 	 COVENANT OF QUIET ENJOYMENT
	  	40
			
	ARTICLE 21	 	 LETTER OF CREDIT
	  	40

  

 (i) 

					
	 ARTICLE

	 	 SUBJECT MATTER

	  	PAGE

			
	ARTICLE 22	 	 SUBSTITUTION OF OTHER PREMISES
	  	44
			
	ARTICLE 23	 	 SIGNS
	  	44
			
	ARTICLE 24	 	 COMPLIANCE WITH LAW
	  	45
			
	ARTICLE 25	 	 LATE CHARGES
	  	46
			
	ARTICLE 26	 	 LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT
	  	46
			
	ARTICLE 27	 	 ENTRY BY LANDLORD
	  	47
			
	ARTICLE 28	 	 TENANT PARKING
	  	47
			
	ARTICLE 29	 	 MISCELLANEOUS PROVISIONS
	  	48
			
	ARTICLE 30	 	 EXISTING ENVIRONMENTAL CONDITION
	  	58
		
	EXHIBITS	  	 
		
	 A      OUTLINE OF PREMISES
	  	 
		
	 B      WORK LETTER
	  	 
		
	 C      FORM OF NOTICE OF LEASE TERM DATES
	  	 
		
	 D      RULES AND REGULATIONS
	  	 
		
	 E       FORM OF TENANT’S ESTOPPEL CERTIFICATE
	  	 
		
	 F       FORM OF LETTER OF CREDIT
	  	 
		
	 G      ENVIRONMENTAL SUMMARY
	  	 

  

 (ii) 

 SIERRA POINT DEVELOPMENT 
  
 OFFICE LEASE 
  
 This Office Lease (the “Lease”), dated as of the date set forth in Section 1 of the Summary of Basic Lease Information (the
“Summary”), below, is made by and between GAINEY ONE TRUST, a Maryland real estate investment trust (“Landlord”), and COTHERIX, INC., a Delaware corporation (“Tenant”). 
  
 SUMMARY OF BASIC LEASE INFORMATION 
  

							
	 	 	TERMS OF LEASE

	  	 DESCRIPTION

	1.	 	Date:	  	January 5, 2004
			
	2.	 	Premises
(Article 1).	  	 
				
	 	 	2.1	  	Building:	  	5000 Shoreline Court, South San Francisco, California
				
	 	 	2.2	  	Premises:	  	Approximately 14,145 rentable square feet of space located on the first (1st) floor of the Building and commonly known as Suite 101, as further set forth in Exhibit A to the Office
Lease.
			
	3.	 	Lease Term
(Article 2).	  	 
				
	 	 	3.1	  	Length of Term:	  	Five (5) years.
				
	 	 	3.2	  	Lease Commencement Date:	  	The earlier to occur of (i) the date upon which Tenant first commences to conduct business in the Premises and (ii) the date upon which the Premises are Ready for Occupancy, as defined in the
Work Letter attached hereto as Exhibit B, which is anticipated to be March 1, 2004 (the “Anticipated Commencement Date”).

							
	 	 	3.3	  	Lease Expiration Date:	  	If the Lease Commencement Date shall be the first day of a calendar month, then the day immediately preceding the fifth (5th) anniversary of the Lease Commencement Date; or, if the Lease
Commencement Date shall be other than the first day of a calendar month, then the last day of the month in which the fifth (5th) anniversary of the Lease Commencement Date occurs.
			
	4.	 	Base Rent
(Article 3):	  	 

  

							
	 Lease Year

	  	 Annual
 Base Rent

	  	 Monthly
 Installment
 of Base Rent

	  	 Annual
 Rental Rate
 per Rentable
 Square Foot

	1	  	$273,281.40	  	$22,773.45 (subject to Section 3.2 below)	  	$19.32
				
	2	  	$281,768.40	  	$23,480.70 (subject to Section 3.2 below)	  	$19.92
				
	3	  	$290,255.40	  	$24,187.95	  	$20.52
				
	4	  	$298,742.40	  	$24,895.20	  	$21.12
				
	5	  	$307,229.40	  	$25,602.45	  	$21.72

  

							
	5.	 	Base Year
(Article 4):	  	Calendar year 2004.
			
	6.	 	Tenant’s Share
(Article 4):	  	Approximately 10.23%.

  

 -2- 

					
	7.	  	 Permitted Use
 (Article 5):
	  	General office use consistent with a first-class office building and, provided any such use is legally permissible, “Lab Use.” For purposes of the Lease. “Lab Use”
shall mean only the following: wet laboratory space in a portion of the Premises not to exceed a maximum of 2,000 rentable square feet of space in the aggregate, including biology space and limited chemistry space (maximum of two (2) fume hoods).
That portion of the Premises which is utilized for Lab Use is sometimes referred to herein as the “Lab Premises,” and the exact location thereof shall be subject to Landlord’s prior written approval. Notwithstanding anything to
the contrary set forth hereinabove, and as more particularly set forth in the Lease. Tenant shall be responsible for operating and maintaining the Premises pursuant to (i) the Rules and Regulations, and (ii) all Applicable Laws (including, without
limitation, all applicable zoning and building code requirements).
			
	8.	  	 Letter of Credit
 (Article 21):
	  	$145,127.70.
			
	9.	  	 Parking Space Ratio
 (Article 28):
	  	Three and three/tenths (3.3) unreserved parking spaces for every 1,000 rentable square feet of the Premises (i.e. 46 parking spaces).

  

 -3- 

					
	10.	  	 Address of Tenant
 (Section 29.18):
	  	 CoTherix, Inc.
 1301 Shoreway Road, Suite 320

Belmont, California 94002
 Attention: Benson Fong
 (Prior to Lease Commencement Date)
  
 And
  
 CoTherix, Inc.
 5000 Shoreline Court, Suite 101
 South
San Francisco, California 94080
 Attention: Benson Fong
 (After
Lease Commencement Date)
  
 With a Copy To:
  
 Hopkins & Carley, A Law Corporation
 The Letitia Building
 70 S. First Street
 San Jose, California 95113-2406
 Attention: Julie A. Frambach,
Esq.

			
	11.	  	 Address of Landlord
 (Section 29.18):
	  	See Section 29.18 of the Lease.
			
	12.	  	 Broker(s)
 (Section 29.24):
	  	CB Richard Ellis, Inc., representing Landlord, and Cornish and Carey Commercial, representing Tenant.

  
 The foregoing Summary
of Basic Lease Information (“Summary”) is incorporated into and made a part of the Lease. Each reference in the Lease to any Section of the Summary shall mean the respective information set forth above and shall be construed to
incorporate all of the terms provided under the particular Lease provision pertaining to such information. In the event of any conflict between the Summary and the Lease, the latter shall control. 
  

 -4- 

 ARTICLE 1 
  
 PREMISES, BUILDING, PROJECT, AND COMMON AREAS 
  
 1.1 Premises, Building, Project and Common Areas. 
  
 1.1.1 The Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the
premises set forth in Section 2.2 of the Summary (the “Premises”). The outline of the Premises is set forth in Exhibit A attached hereto, and the Premises contains approximately the number of rentable square feet as
set forth in Section 2.2 of the Summary, subject to the provisions of Section 1.2 below. The parties hereto agree that the lease of the Premises is upon and subject to the terms, covenants and conditions herein set forth, and Tenant covenants as a
material part of the consideration for this Lease to keep and perform each and all of such terms, covenants and conditions by it to be kept and performed and that this Lease is made upon the condition of such performance. The parties hereto hereby
acknowledge that the purpose of Exhibit A is to show the approximate location of the Premises in the “Building,” as that term is defined in Section 1.1.2, below, only, and such Exhibit is not meant to constitute an agreement,
representation or warranty as to the construction of the Premises, the precise area thereof or the specific location of the “Common Areas,” as that term is defined in Section 1.1.3, below, or the elements thereof or of the accessways to
the Premises or the “Project,” as that term is defined in Section 1.1.2, below. Except as specifically set forth in this Lease and in the Work Letter attached hereto as Exhibit B (the “Work Letter”), Landlord shall
not be obligated to provide or pay for any improvement work or services related to the improvement of the Premises, and Tenant shall accept possession of the Premises in an “as-is” condition. Tenant also acknowledges that neither Landlord
nor any agent of Landlord has made any representation or warranty regarding the condition of the Premises, the Building or the Project or with respect to the suitability of any of the foregoing for the conduct of Tenant’s business, except as
specifically set forth in this Lease and the Work Letter. The taking of possession of the Premises by Tenant shall conclusively establish that the Premises and the Building were at such time in good and sanitary order, condition and repair. Nothing
contained in this Section 1.1.1 shall affect Tenant’s rights under any warranties or guaranties assigned to Tenant pursuant to Section 4 of the Work Letter. 
  
 1.1.2 The Building and The Project. The Premises are a part of the building set forth in Section
2.1 of the Summary (the “Building”). The Building is part of an office project known as “Sierra Point Development.” The term “Project,” as used in this Lease, shall mean (i) the Building and the Common
Areas, (ii) the land (which is improved with landscaping, parking facilities and other improvements) upon which the Building and the Common Areas are located, and (iii) at Landlord’s discretion, any additional real property, areas, land,
buildings or other improvements added thereto from time to time which, as of the date of this Lease, are outside of the Project. 
  
 1.1.3 Common Areas. Tenant shall have the non-exclusive right to use in common with other tenants in the Project, and subject
to the rules and regulations referred to in Article 5 of this Lease, those portions of the Project which are provided, from time to time, for use in common by Landlord, Tenant and any other tenants of the Project (such areas, together with such
other portions of the Project designated by Landlord, in its reasonable discretion, 
  

 -5- 

 including certain areas designated for the exclusive use of certain tenants, or to be shared by Landlord and certain
tenants, are collectively referred to herein as the “Common Areas”). The Common Areas shall consist of the “Project Common Areas” and the “Building Common Areas.” The term “Project Common Areas,”
as used in this Lease, shall mean the portion of the Project designated as such by Landlord. The term “Building Common Areas,” as used in this Lease, shall mean the portions of the Common Areas located within the Building designated
as such by Landlord. The manner in which the Common Areas are maintained and operated shall be at the sole discretion of Landlord, provided that Landlord shall maintain and operate the same in a manner consistent with that of other first-class
office buildings in the vicinity of the Project, which buildings are comparable in size and quality of appearance, services and amenities to the Building (the “Comparable Buildings”), and the use thereof shall be subject to such
reasonable and nondiscriminatory rules, regulations and restrictions as Landlord may make from time to time. Landlord reserves the right to close temporarily, make alterations or additions to, or change the location of elements of the Project and
the Common Areas, provided that the same shall not prevent Tenant’s ingress to and egress from the Premises. In exercising the rights set forth in the immediately preceding sentence, Landlord shall use commercially reasonable efforts to
minimize, to the extent practicable, interference with Tenant’s use of the Premises arising therefrom. 
  
 1.2 Verification of Rentable Square Feet of Premises, Building, and Project. For purposes of this Lease, “rentable square
feet” shall be calculated pursuant to “BOMA,” as that term is defined in Section 4.2.9 below. In the event that the rentable area of the Premises, the Building and/or the Project shall hereafter change due to subsequent
alterations and/or other modifications to the Premises, the Building and/or the Project, the rentable area of the Premises, the Building and/or the Project, as the case may be, shall be appropriately adjusted as of the date of such alteration and/or
other modification, based upon the written verification by Landlord’s space planner of such revised rentable area. In the event of any such adjustment to the rentable area of the Premises, the Building and/or the Project, all amounts,
percentages and figures appearing or referred to in this Lease based upon such rentable area (including, without limitation, the “Tenant’s Share”, as defined in Article 4 of this Lease) shall be modified in accordance with such
determination; provided, however, that in no event shall the Base Rent be modified as a result of any such determination. Within ten (10) business days following Landlord’s request, Tenant shall execute an amendment of this Lease confirming all
revisions to this Lease resulting from such adjustment; provided, however, failure to execute such amendment shall not affect the validity of any such adjustment or of the modifications to this Lease resulting therefrom, as described above.

  
 ARTICLE 2 
  
 LEASE TERM 
  
 The terms and provisions of this Lease shall be effective as of the date of
this Lease. The term of this Lease (the “Lease Term”) shall be as set forth in Section 3.1 of the Summary, shall commence on the date set forth in Section 3.2 of the Summary (the “Lease Commencement Date”), and
shall terminate on the date set forth in Section 3.3 of the Summary (the “Lease Expiration Date”) unless this Lease is sooner terminated as hereinafter provided. For purposes of this Lease, the term “Lease Year”
shall mean each consecutive twelve (12) month period 
  

 -6- 

 during the Lease Term; provided, however, that the first Lease Year shall commence on the Lease Commencement Date and end
on the last day of the eleventh month thereafter and the second and each succeeding Lease Year shall commence on the first day of the next calendar month; and further provided that the last Lease Year shall end on the Lease Expiration Date. At any
time during the Lease Term, Landlord may deliver to Tenant a notice in the form as set forth in Exhibit C, attached hereto, as a confirmation only of the information set forth therein, which Tenant shall execute and return to Landlord
within ten (10) business days of receipt thereof. If Landlord fails to cause the Premises to be Ready for Occupancy (as defined in Section 5.1 of the Work Letter) on or before May 1, 2004, and such failure is not caused, in whole or in part, by an
event of Force Majeure (as defined in Section 29.16 below) or by a Tenant delay or delays (as described in Section 5.2 of the Work Letter), then for every day of delay from May 1, 2004, until the Premises are Ready for Occupancy, provided that such
delay is not caused by Force Majeure or a Tenant delay, Tenant shall be entitled to a rent credit equal to one (1) day of Base Rent. If Landlord fails to cause the Premises to be Ready for Occupancy on or before June 1, 2004 (the “Outside
Commencement Date”), and such failure is not caused, in whole or in part, by an event of Force Majeure or by a Tenant delay or delays (as described in Section 5.2 of the Work Letter), then Tenant shall have the right, by written notice to
Landlord given not later than ten (10) business days following the Outside Commencement Date, to terminate this Lease. Such Base Rent credit or termination right, as applicable, shall be Tenant’s sole recourse with respect to any such failure.
If Tenant fails to timely provide such termination notice, or if the Premises become Ready for Occupancy at any time prior to Landlord’s receipt of such termination notice, then this Lease shall continue in full force and effect and
Tenant’s right to terminate this Lease pursuant to this Article 2 shall be null and void and of no further force or effect. In the event this Lease is terminated in accordance with this Article 2, Landlord shall promptly return to Tenant any
Base Rent previously paid by Tenant to Landlord and the Letter of Credit. 
  
 ARTICLE 3 
  
 BASE RENT 
  
 3.1 Payment of Base
Rent. Tenant shall pay, without prior notice or demand, to Landlord or Landlord’s agent, c/o Opus West Management Corporation, 2415 East Camelback Road, Suite 840, Phoenix, Arizona 85016, or, at Landlord’s option, at such other
place as Landlord may from time to time designate in writing, by a check for currency which, at the time of payment, is legal tender for private or public debts in the United States of America, base rent (“Base Rent”) as set forth
in Section 4 of the Summary, payable in equal monthly installments as set forth in Section 4 of the Summary in advance on or before the first day of each and every calendar month during the Lease Term, without any setoff or deduction whatsoever. The
Base Rent for the first full month of the Lease Term for which Base Rent is due shall be paid at the time of Tenant’s execution of this Lease. If any Rent payment date (including the Lease Commencement Date) falls on a day of the month other
than the first day of such month or if any payment of Rent is for a period which is shorter than one month, the Rent for any fractional month shall accrue on a daily basis for the period from the date such payment is due to the end of such calendar
month or to the end of the Lease Term at a rate per day which is equal to 1/365 of the applicable annual Rent. All other payments or adjustments required to be made under the terms of this Lease that require proration on a time basis shall be
prorated on the same basis. 
  

 -7- 

 3.2 Base Rent Abatement. Notwithstanding anything to the contrary contained in this Lease,
Landlord hereby agrees to reduce the Base Rent payable with respect to (a) the first (1st) through the twelfth (12th) months of the Lease Term to an amount equal to $16,905.00 per month, and (b) the thirteenth (13th) through the fifteenth (15th)
months of the Lease Term to an amount equal to $17,430.00 per month. 
  
 ARTICLE 4 
  
 ADDITIONAL RENT

  
 4.1 General Terms. In addition to paying the
Base Rent specified in Article 3 of this Lease, Tenant shall pay “Tenant’s Share” of the annual “Building Direct Expenses,” as those terms are defined in Sections 4.2.9 and 4.2.2 of this Lease, respectively, which are in
excess of the amount of Building Direct Expenses applicable to the “Base Year,” as that term is defined in Section 4.2.1, below; provided, however, that in no event shall any decrease in Building Direct Expenses for any “Expense
Year,” as that term is defined in Section 4.2.6 below, below Building Direct Expenses for the Base Year entitle Tenant to any decrease in Base Rent or any credit against sums due under this Lease. Such payments by Tenant, together with any and
all other amounts payable by Tenant to Landlord pursuant to the terms of this Lease, are hereinafter collectively referred to as the “Additional Rent”, and the Base Rent and the Additional Rent are herein collectively referred to as
“Rent.” All amounts due under this Article 4 as Additional Rent shall be payable for the same periods and in the same manner as the Base Rent. Without limitation on other obligations of Tenant which survive the expiration of the
Lease Term, the obligations of Tenant to pay the Additional Rent provided for in this Article 4 shall survive the expiration of the Lease Term. 
  
 4.2 Definitions of Key Terms Relating to Additional Rent. As used in this Article 4, the following terms shall have the meanings hereinafter
set forth: 
  
 4.2.1 “Base Year” shall mean the
period set forth in Section 5 of the Summary. 
  
 4.2.2
“Building Direct Expenses” shall mean “Building Operating Expenses” and “Building Tax Expenses”, as those terms are defined in Sections 4.2.3 and 4.2.4, below, respectively. 
  
 4.2.3 “Building Operating Expenses” shall mean the portion
of “Operating Expenses,” as that term is defined in Section 4.2.7 below, allocated to the tenants of the Building pursuant to the terms of Section 4.3.1 below. 
  
 4.2.4 “Building Tax Expenses” shall mean that portion of “Tax Expenses”, as that term is defined
in Section 4.2.8 below, allocated to the tenants of the Building pursuant to the terms of Section 4.3.1 below. 
  
 4.2.5 “Direct Expenses” shall mean “Operating Expenses” and “Tax Expenses.” 
  
 4.2.6 “Expense Year” shall mean each calendar year in which
any portion of the Lease Term falls, through and including the calendar year in which the Lease Term expires, provided that Landlord, upon notice to Tenant, may change the Expense Year from time to time 
  

 -8- 

 to any other twelve (12) consecutive month period, and, in the event of any such change, Tenant’s Share of Building
Direct Expenses shall be equitably adjusted for any Expense Year involved in any such change. 
  
 4.2.7 “Operating Expenses” shall mean all expenses, costs and amounts of every kind and nature which Landlord pays or accrues during any Expense Year because of or in connection with the ownership,
management, maintenance, security, repair, replacement, restoration or operation of the Project, or any portion thereof. Without limiting the generality of the foregoing, Operating Expenses shall specifically include any and all of the following:
(i) the cost of supplying all utilities, the cost of operating, repairing, maintaining, and renovating the utility, telephone, mechanical, sanitary, storm drainage, and elevator systems, and the cost of maintenance and service contracts in
connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of contesting any governmental enactments which may affect Operating Expenses, and the costs incurred in connection with a governmentally mandated
transportation system management program or similar program; (iii) the cost of all insurance carried by Landlord in connection with the Project as reasonably determined by Landlord (including, without limitation, commercially reasonable deductibles;
provided, however, that Tenant’s Share of any flood and earthquake insurance deductibles, allocated, by amortization or otherwise, to any particular expense year, shall not, for purposes of this Section 4.2.7, exceed $3,500 per year); (iv) the
cost of landscaping, relamping, and all supplies, tools, equipment and materials used in the operation, repair and maintenance of the Project, or any portion thereof; (v) the cost of parking area repair, restoration, and maintenance; (vi) fees and
other costs, including reasonable management fees (not to exceed three percent (3%) of gross revenues for the Project), consulting fees, legal fees and accounting fees, of all contractors and consultants in connection with the management, operation,
maintenance and repair of the Project; (vii) payments under any equipment rental agreements and the fair rental value of any management office space; (viii) subject to item (f), below, wages, salaries and other compensation and benefits, including
taxes levied thereon, of all persons engaged in the operation, maintenance and security of the Project; (ix) payments under any easement, license, operating agreement, declaration, restrictive covenant, environmental covenants, conditions and
restrictions or other instrument pertaining to the sharing of costs by the Building or the Project, including, without limitation, any property owner and parking association fees; (x) operation, repair, maintenance and replacement of all systems and
equipment and components thereof of the Project; (xi) the cost of janitorial, alarm, security and other services, replacement of wall and floor coverings, ceiling tiles and fixtures in Common Areas, maintenance and replacement of curbs and walkways,
repairs to roofs and re-roofing; (xii) amortization (including interest on the unamortized cost) over the useful life as Landlord shall reasonably determine, of the cost of acquiring or the rental expense of personal property used in the
maintenance, operation and repair of the Project, or any portion thereof; (xiii) the cost of capital improvements or other costs incurred in connection with the Project (A) which are intended to effect economies in the operation or maintenance of
the Project, or any portion thereof, (B) that are required to comply with present or reasonably anticipated conservation programs, (C) which are replacements or modifications of nonstructural items located in the Common Areas required to keep the
Common Areas in good order or condition, or (D) that are required under any governmental law or regulation; provided, however, that any capital expenditure shall be amortized (including interest on the amortized cost) over its useful life as
Landlord shall reasonably determine using generally accepted accounting principles, consistently applied; and (xiv) costs, fees, charges or assessments imposed by, or resulting from 
  

 -9- 

 any mandate imposed on Landlord by, any federal, state or local government for fire and police protection, trash removal,
community services, or other services which do not constitute “Tax Expenses” as that term is defined in Section 4.2.8, below. Notwithstanding the foregoing, for purposes of this Lease, Operating Expenses shall not, however, include:

  
 (a) costs, including marketing costs, legal
fees, space planners’ fees, advertising and promotional expenses, and brokerage fees incurred in connection with the original construction or development, or original or future leasing of the Project, and costs, including permit, license and
inspection costs, incurred with respect to the installation of tenant improvements made for new tenants initially occupying space in the Project after the Lease Commencement Date or incurred in renovating or otherwise improving, decorating, painting
or redecorating vacant space for tenants or other occupants of the Project (excluding, however, such costs relating to any Common Areas or parking facilities); 
  

(b) except as set forth in items (xii), (xiii), and (xiv) above, depreciation, interest and principal payments on mortgages and other
debt costs, if any, penalties and interest, costs of capital repairs and alterations, and costs of capital improvements and equipment; 
  
 (c) costs for which the Landlord is reimbursed by any tenant or occupant of the Project or by insurance by its carrier or any
tenant’s carrier or by anyone else, and electric power costs for which any tenant directly contracts with the local public service company; 
  
 (d) any bad debt loss, rent loss, or reserves for bad debts or rent loss; 
  
 (e) costs associated with the operation of the business of the entity which constitutes the Landlord (as the
same are distinguished from the costs of operation of the Project, which shall specifically include, but not be limited to, accounting costs associated with the operation of the Project), including costs of accounting and legal matters with respect
to such entity, costs of defending any lawsuits with any mortgagee (except as the actions of the Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of the Landlord’s interest in the Project, and
costs incurred in connection with any disputes between Landlord and its employees, between Landlord and Project management, or between Landlord and other tenants or occupants, and Landlord’s general corporate overhead and general and
administrative expenses; 
  
 (f) the wages and
benefits of any employee who does not devote substantially all of his or her employed time to the Project unless such wages and benefits are prorated to reflect time spent on operating and managing the Project vis-á-vis time spent on matters
unrelated to operating and managing the Project; provided, that in no event shall Operating Expenses for purposes of this Lease include wages and/or benefits attributable to personnel above the level of Project manager; 
  
 (g) amount paid as ground rental for the Project by the
Landlord; 
  

 -10- 

 (h) except for a Project management fee to the extent allowed pursuant to item (vi),
above, overhead and profit increment paid to the Landlord or to subsidiaries or affiliates of the Landlord for services in the Project to the extent the same exceeds the costs of such services rendered by qualified, first-class unaffiliated third
parties on a competitive basis; 
  
 (i) any
compensation paid to clerks, attendants or other persons in commercial concessions operated by the Landlord, provided that any compensation paid to any concierge at the Project shall be included as an Operating Expense; 
  
 (j) rentals and other related expenses incurred in leasing
air conditioning systems, elevators or other equipment which if purchased the cost of which would be excluded from Operating Expenses as a capital cost, except equipment not affixed to the Project which is used in providing janitorial or similar
services, and further excepting from this exclusion such equipment rented or leased to remedy or ameliorate an emergency condition at the Project; 
  
 (k) all items and services for which Tenant or any other tenant in the Project reimburses Landlord or which Landlord provides selectively
to one or more tenants (other than Tenant) without reimbursement; 
  
 (l) costs, other than those incurred in ordinary maintenance and repair, for sculpture, paintings, fountains or other objects of art, except to the extent the same are governmentally mandated; 
  
 (m) any costs expressly excluded from Operating Expenses
elsewhere in this Lease; 
  
 (n) rent for any
office space occupied by Project management personnel to the extent the size or rental rate of such office space exceeds the size or fair market rental value of office space occupied by management personnel of the Comparable Buildings, with
adjustment where appropriate for the size of the applicable Comparable Building as compared to the size of the Project; 
  
 (o) costs arising from the gross negligence or willful misconduct of Landlord or its agents, employees, vendors, contractors, or providers
of materials or services; 
  
 (p) except with
respect to costs arising under any environmental covenants, conditions and restrictions affecting all or any portion of the Project, costs incurred to comply with laws relating to the removal of hazardous material (as defined under applicable law)
which was in existence in the Building or on the Project prior to the Lease Commencement Date, and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such hazardous
material, in the state, and under the conditions that it then existed in the Building or on the Project, would have then required the removal of such hazardous material or other remedial or containment action with respect thereto; and costs incurred
to remove, remedy, contain, or treat hazardous material, which hazardous material is brought into the Building or onto the Project after the date hereof by Landlord or any other tenant of the 
  

 -11- 

 Project and is of such a nature, at that time, that a federal, State or municipal governmental authority,
if it had then had knowledge of the presence of such hazardous material, in the state, and under the conditions, that it then exists in the Building or on the Project, would have then required the removal of such hazardous material or other remedial
or containment action with respect thereto; 
  
 (q) costs arising from Landlord’s charitable or political contributions; 
  
 (r) any gifts provided to any entity whatsoever, including, but not limited to, Tenant, other tenants, employees, vendors, contractors,
prospective tenants and agents; 
  
 (s) the cost
of any magazine, newspaper, trade or other subscriptions; and 
  
 (t) costs incurred under Article 11 of this Lease to the extent the same are reimbursed by insurance proceeds received by Landlord or otherwise reimbursed to Landlord by a third party. 
  
 If Landlord is not furnishing any particular work or service (the cost of
which, if performed by Landlord, would be included in Operating Expenses) to a tenant who has undertaken to perform such work or service in lieu of the performance thereof by Landlord, Operating Expenses shall be deemed to be increased by an amount
equal to the additional Operating Expenses which would reasonably have been incurred during such period by Landlord if it had at its own expense furnished such work or service to such tenant. If the Project is not at least ninety-five percent (95%)
occupied during all or a portion of the Base Year or any Expense Year, Landlord shall make an appropriate adjustment to the components of Operating Expenses for such year to determine the amount of Operating Expenses that would have been incurred
had the Project been ninety-five percent (95%) occupied; and the amount so determined shall be deemed to have been the amount of Operating Expenses for such year. 
  
 4.2.8 Taxes. 
  
 4.2.8.1 “Tax Expenses” shall mean all federal, state, county, or local governmental or municipal taxes, fees, charges or other
impositions of every kind and nature, whether general, special, ordinary or extraordinary, (including, without limitation, real estate taxes, general and special assessments, transit taxes, leasehold taxes or taxes based upon the receipt of rent,
including gross receipts or sales taxes applicable to the receipt of rent, unless required to be paid by Tenant, personal property taxes imposed upon the fixtures, machinery, equipment, apparatus, systems and equipment, appurtenances, furniture and
other personal property used in connection with the Project, or any portion thereof), which shall be paid or accrued during any Expense Year (without regard to any different fiscal year used by such governmental or municipal authority) because of or
in connection with the ownership, leasing and operation of the Project, or any portion thereof. 
  
 4.2.8.2 Tax Expenses shall include, without limitation: (i) any tax on the rent, right to rent or other income from the Project, or any portion thereof,
or as against the business of leasing the Project, or any portion thereof; (ii) any assessment, tax, fee, levy or charge in addition to, or in substitution, partially or totally, of any assessment, tax, fee, levy or charge previously included within
the definition of real property tax, it being acknowledged by 
  

 -12- 

 Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California in the June 1978 election
(“Proposition 13”) and that assessments, taxes, fees, levies and charges may be imposed by governmental agencies for such services as fire protection, street, sidewalk and road maintenance, refuse removal and for other governmental
services formerly provided without charge to property owners or occupants, and, in further recognition of the decrease in the level and quality of governmental services and amenities as a result of Proposition 13, Tax Expenses shall also include any
governmental or private assessments or the Project’s contribution towards a governmental or private cost-sharing agreement for the purpose of augmenting or improving the quality of services and amenities normally provided by governmental
agencies; (iii) any assessment, tax, fee, levy, or charge allocable to or measured by the area of the Premises or the Rent payable hereunder, including, without limitation, any business or gross income tax or excise tax with respect to the receipt
of such rent, or upon or with respect to the possession, leasing, operating, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises, or any portion thereof; (iv) any assessment, tax, fee, levy or charge, upon this
transaction or any document to which Tenant is a party, creating or transferring an interest or an estate in the Premises; and (v) all of the real estate taxes and assessments imposed upon or with respect to the Building and all of the real estate
taxes and assessments imposed on the land and improvements comprising the Project. 
  
 4.2.8.3 Any costs and expenses (including, without limitation, reasonable attorneys’ and consultants’ fees) incurred in attempting to protest, reduce or minimize Tax Expenses shall be included in Tax
Expenses in the Expense Year such expenses are incurred. If Tax Expenses for any period during the Lease Term or any extension thereof are increased after payment thereof for any reason, including, without limitation, error or reassessment by
applicable governmental or municipal authorities, Tenant shall pay Landlord upon demand Tenant’s Share of any such increased Tax Expenses included by Landlord as Building Tax Expenses pursuant to the terms of this Lease. Notwithstanding
anything to the contrary contained in this Section 4.2.8 (except as set forth in Section 4.2.8.1, above), there shall be excluded from Tax Expenses (i) all excess profits taxes, franchise taxes, gift taxes, capital stock taxes, inheritance and
succession taxes, estate taxes, federal and state income taxes, transfer taxes and other taxes to the extent applicable to Landlord’s general or net income (as opposed to rents, receipts or income attributable to operations at the Project),
(ii) any items included as Operating Expenses, (iii) any items paid by Tenant under Section 4.5 of this Lease and (iv) taxes paid directly to the taxing authority by any other tenant of the Project. 
  
 4.2.8.4 Notwithstanding anything to the contrary set forth in this Lease,
the amount of Tax Expenses for the Base Year and any Expense Year shall be calculated without taking into account any decreases in real estate taxes obtained in connection with Proposition 8, and, therefore, the Tax Expenses in the Base Year and/or
an Expense Year may be greater than those actually incurred by Landlord, but shall, nonetheless, be the Tax Expenses due under this Lease; provided that (i) any costs and expenses incurred by Landlord in securing any Proposition 8 reduction shall
not be included in Direct Expenses for purposes of this Lease, and (ii) tax refunds under Proposition 8 shall not be deducted from Tax Expenses, but rather shall be the sole property of Landlord. Landlord and Tenant acknowledge that this Section
4.2.8.4 is not intended to in any way affect (A) the inclusion in Tax Expenses of the statutory two percent (2.0%) annual increase in Tax Expenses (as such statutory increase may be modified by subsequent legislation), or (B) the inclusion or
exclusion of Tax Expenses pursuant to the terms 
  

 -13- 

 of Proposition 13, which shall be governed pursuant to the terms of Sections 4.2.8.1 through 4.2.8.3, above.
Notwithstanding the foregoing, upon any reassessment of the Project for real estate tax purposes by the appropriate governmental authority (whether as a result of a sale, refinancing or change in ownership or otherwise), which reassessment occurs
after the Base Year, the component of Tax Expenses for the Base Year which is attributable to the assessed value of the Project under Proposition 13 prior to such reassessment (without taking into account any Proposition 8 reductions) shall be
reduced, if at all, for the purposes of comparison to all subsequent Expense Years (commencing with the Expense Year in which such reassessment takes place) to an amount equal to the real estate taxes based upon such reassessment. 
  
 4.2.9 “Tenant’s Share” shall mean the percentage set
forth in Section 6 of the Summary. Tenant’s Share is equal to a fraction, the numerator of which is the number of rentable square feet of the Premises, as set forth in Section 2.2 of the Summary, and the denominator of which is the total
rentable square feet in the Building, which fraction is expressed as a percentage in Section 6 of the Summary. The rentable square feet in the Premises and Building is measured pursuant to the Standard Method for Measuring Floor Area in Office
Buildings, ANSI Z65.1 - 1996, as modified by Landlord pursuant to Landlord’s standard rentable area measurements for the Building (“BOMA”). In the event either the rentable square feet of the Premises and/or the total rentable
square feet of the Building is remeasured by Landlord, Tenant’s Share shall be appropriately adjusted, and, as to the Expense Year in which such change occurs, Tenant’s Share for such Expense Year shall be determined on the basis of the
number of days during such Expense Year that each such Tenant’s Share was in effect. Landlord shall have the option to modify the method of calculation of Tenant’s Share to a calculation based on the usable square feet of the Premises and
Building, so long as the Tenant’s Share hereunder is not increased thereby. 
  
 4.3 Allocation of Direct Expenses. 
  
 4.3.1 Method of Allocation. Landlord and Tenant acknowledge that the Building is, or may during the Lease Term become, a part of a multi-building project and that the costs and expenses incurred
in connection with the Project (i.e. the Direct Expenses) should be shared between the tenants of the Building and the tenants of the other buildings, if any, in the Project. Accordingly, as set forth in Section 4.2 above, Direct Expenses
(which consists of Operating Expenses and Tax Expenses) are determined annually for the Project as a whole, and, if at any time the Project consists of more than one building, a portion of the Direct Expenses, which portion shall be determined by
Landlord on an equitable basis, shall be allocated to the tenants of the Building (as opposed to the tenants of any other buildings in the Project) and such portion shall be the Building Direct Expenses for purposes of this Lease. Such portion of
Direct Expenses allocated to the tenants of the Building shall include all Direct Expenses attributable solely to the Building and an equitable portion of the Direct Expenses attributable to the Project as a whole. During such time as the Building
is the only building in the Project, one hundred percent (100%) of Direct Expenses attributable to the Project shall be allocated to the Building and shall constitute Building Direct Expenses. 
  
 4.3.2 Cost Pools. Landlord shall have the right, from time to
time, to equitably allocate some or all of the Direct Expenses for the Project among different portions or occupants of the Project (the “Cost Pools”), in Landlord’s reasonable discretion. Such Cost Pools may 
  

 -14- 

 include, but shall not be limited to, the office space tenants of a building of the Project or of the Project, and the
retail space tenants of a building of the Project or of the Project. The Direct Expenses within each such Cost Pool shall be allocated and charged to the tenants within such Cost Pool in an equitable manner. 
  
 4.4 Calculation and Payment of Additional Rent. If for any
Expense Year ending or commencing within the Lease Term, Tenant’s Share of Building Direct Expenses for such Expense Year exceeds Tenant’s Share of Building Direct Expenses applicable to the Base Year, then Tenant shall pay to Landlord, in
the manner set forth in Section 4.4.1, below, and as Additional Rent, an amount equal to the excess (the “Excess”). 
  
 4.4.1 Statement of Actual Building Direct Expenses and Payment by Tenant. Landlord shall provide to Tenant following the end of each Expense
Year, a statement (the “Statement”) which shall state the Building Direct Expenses incurred or accrued for such preceding Expense Year, and which shall indicate the amount of the Excess. Landlord shall endeavor to provide such
Statement within one hundred twenty (120) days following the end of the subject Expense Year. Within thirty (30) days following receipt of the Statement for each Expense Year commencing or ending during the Lease Term, if an Excess is present,
Tenant shall pay to Landlord the full amount of the Excess for such Expense Year, less the amounts, if any, paid during such Expense Year as “Estimated Excess,” as that term is defined in Section 4.4.3, below, and if Tenant paid more as
Estimated Excess than the actual Excess, Tenant shall receive a credit in the amount of Tenant’s overpayment against Rent next due under this Lease. The failure of Landlord to timely furnish the Statement for any Expense Year shall not
prejudice Landlord or Tenant from enforcing its rights under this Article 4; provided, however, that if Landlord fails to provide a Statement within one (1) year following the end of any particular Expense Year, then Landlord shall be deemed to have
waived its right to receive from Tenant any underpayment of the actual Excess for the subject Expense Year. Even though the Lease Term has expired and Tenant has vacated the Premises, when the final determination is made of Tenant’s Share of
Building Direct Expenses for the Expense Year in which this Lease terminates, if an Excess is present, Tenant shall pay to Landlord such amount within thirty (30) days following invoice therefor, and if Tenant paid more as Estimated Excess than the
actual Excess, Landlord shall, within thirty (30) days, deliver a check payable to Tenant in the amount of the overpayment. The provisions of this Section 4.4.1 shall survive the expiration or earlier termination of the Lease Term. 
  
 4.4.2 Tenant’s Audit Right. Unless Tenant takes exception
by written notice to Landlord within thirty (30) days after Landlord provides any Statement to Tenant, such Statement shall be considered final and binding on Tenant (except as to additional Building Direct Expenses not then known or omitted by
error). Pending resolution of any such exceptions, Tenant shall pay Tenant’s Share of Building Direct Expenses in the amount shown on such Statement, subject to credit, refund or additional payment after any such exceptions are resolved. If
Tenant takes exception to any Statement within such 30-day period, then an independent certified public accountant (which accountant is a member of a nationally recognized accounting firm and is not working on a contingency fee basis), designated
and paid for by Tenant (“Tenant’s Accountant”), may, after reasonable notice to Landlord and at reasonable times during business hours during that period which is thirty (30) days following Tenant’s exception notice,
inspect Landlord’s records with respect to the subject Statement at 
  

 -15- 

 Landlord’s offices, provided that Tenant is not then in breach or default under this Lease and Tenant has paid all
amounts required to be paid under the applicable Statement. In connection with such inspection, Tenant and Tenant’s agents (including, without limitation, Tenant’s Accountant) must agree in advance to follow Landlord’s reasonable
rules and procedures regarding inspections of Landlord’s records, and shall execute a commercially reasonable confidentiality agreement regarding such inspection. Tenant’s failure to take exception to any Statement within thirty (30) days
of Tenant’s receipt of such Statement, or to complete inspection of Landlord’s records with respect to such Statement within thirty (30) days following Tenant’s exception notice, shall be deemed to be Tenant’s approval of such
Statement, and Tenant thereafter waives the right or ability to dispute the amounts set forth in such Statement. If after such inspection, Tenant still disputes such Statement, a determination as to the proper amount shall be made, at Tenant’s
expense, by an independent certified public accountant (“Landlord’s Accountant”) selected by Landlord and subject to Tenant’s reasonable approval; provided that if such determination by Landlord’s Accountant proves
that Building Direct Expenses were overstated by more than five percent (5%), then the cost of Landlord’s Accountant and the cost of such determination shall be paid for by Landlord. Tenant hereby acknowledges that Tenant’s sole right to
inspect Landlord’s books and records and to contest the amount of Building Direct Expenses payable by Tenant shall be as set forth in this Section 4.4.2, and Tenant hereby waives any and all other rights pursuant to applicable law to inspect
such books and records and/or to contest the amount of Building Direct Expenses payable by Tenant. 
  
 4.4.3 Statement of Estimated Building Direct Expenses. In addition, Landlord shall endeavor to give Tenant a yearly expense estimate
statement (the “Estimate Statement”) which shall set forth Landlord’s reasonable estimate (the “Estimate”) of what the total amount of Building Direct Expenses for the then-current Expense Year shall be and the
estimated excess (the “Estimated Excess”) as calculated by comparing the Building Direct Expenses for such Expense Year, which shall be based upon the Estimate, to the amount of Building Direct Expenses for the Base Year. The
failure of Landlord to timely furnish the Estimate Statement for any Expense Year shall not preclude Landlord from enforcing its rights to collect any Estimated Excess under this Article 4, nor shall Landlord be prohibited from revising any Estimate
Statement or Estimated Excess theretofore delivered to the extent necessary. Thereafter, Tenant shall pay, with its next installment of Base Rent due, a fraction of the Estimated Excess for the then-current Expense Year (reduced by any amounts paid
pursuant to the last sentence of this Section 4.4.3). Such fraction shall have as its numerator the number of months which have elapsed in such current Expense Year, including the month of such payment, and twelve (12) as its denominator. Until a
new Estimate Statement is furnished (which Landlord shall have the right to deliver to Tenant at any time), Tenant shall pay monthly, with the monthly Base Rent installments, an amount equal to one-twelfth (1/12) of the total Estimated Excess set
forth in the previous Estimate Statement delivered by Landlord to Tenant. 
  
 4.5 Taxes and Other Charges for Which Tenant Is Directly Responsible. 
  
 4.5.1 Tenant shall be liable for and shall pay ten (10) days before delinquency, taxes levied against Tenant’s equipment, furniture, fixtures and any
other personal property located in or about the Premises. If any such taxes on Tenant’s equipment, furniture, fixtures and any other personal property are levied against Landlord or Landlord’s property or if the assessed value of
Landlord’s property is increased by the inclusion therein of a value placed upon such 
  

 -16- 

 equipment, furniture, fixtures or any other personal property and if Landlord pays the taxes based upon such increased
assessment, which Landlord shall have the right to do regardless of the validity thereof but only under proper protest if requested by Tenant, Tenant shall upon demand repay to Landlord the taxes so levied against Landlord or the proportion of such
taxes resulting from such increase in the assessment, as the case may be. 
  
 4.5.2 If the tenant improvements in the Premises, whether installed and/or paid for by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, are assessed for real property
tax purposes at a valuation higher than the valuation at which tenant improvements conforming to Landlord’s “building standard” in other space in the Building are assessed, then the Tax Expenses levied against Landlord or the property
by reason of such excess assessed valuation shall be deemed to be taxes levied against personal property of Tenant and shall be governed by the provisions of Section 4.5.1, above. 
  
 4.5.3 Notwithstanding any contrary provision herein, Tenant shall pay prior to delinquency any (i) rent tax or sales tax,
service tax, transfer tax or value added tax, or any other applicable tax on the rent or services herein or otherwise respecting this Lease, (ii) taxes assessed upon or with respect to the possession, leasing, operation, management, maintenance,
alteration, repair, use or occupancy by Tenant of the Premises or any portion of the Project, including the Project parking facility; or (iii) taxes assessed upon this transaction or any document to which Tenant is a party creating or transferring
an interest or an estate in the Premises. 
  
 4.5.4 During such
portion of the Lease Term as Tenant utilizes all or any portion of the Premises for Lab Use, Tenant shall be liable for and shall pay directly to Landlord within thirty (30) days of being invoiced therefor, the actual cost, if any, incurred by
Landlord for carrying, pursuant to the terms and conditions of Section 10.7, below, “Pollution Legal Liability Environmental Insurance.” 
  
 ARTICLE 5 
  
 USE OF PREMISES 
  
 5.1 Permitted Use. Tenant shall use the Premises solely for the Permitted Use set forth in Section 7 of the Summary and Tenant shall not use
or permit the Premises or the Project to be used for any other purpose or purposes whatsoever without the prior written consent of Landlord, which may be withheld in Landlord’s sole discretion. 
  
 5.2 Prohibited Uses. Tenant further covenants and agrees that
Tenant shall not use, or suffer or permit any person or persons to use, the Premises or any part thereof for any use or purpose contrary to the provisions of the Rules and Regulations set forth in Exhibit D, attached hereto, or in
violation of the laws of the United States of America, the State of California, or the ordinances, regulations or requirements of the local municipal or county governing body or other lawful authorities having jurisdiction over the Project. In no
event shall Tenant use, or suffer or permit any person or persons to use, any hazardous materials or substances, as those terms are defined by applicable laws now or hereafter in effect, in, on or about the Premises, except that Tenant may use
within the Premises such substances as are customarily and lawfully used for general office purposes, provided that such substances shall be properly labeled and contained 
  

 -17- 

 and shall be used and stored only in small quantities reasonably necessary for general office use and strictly in
accordance with all applicable laws and the manufacturers’ instructions therefor. Tenant shall not do or permit anything to be done in or about the Premises which will in any way damage the reputation of the Project or obstruct or interfere
with the rights of other tenants or occupants of the Building, or injure or annoy them or use or allow the Premises to be used for any improper, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or
about the Premises. Tenant shall comply with, and Tenant’s rights and obligations under this Lease and Tenant’s use of the Premises shall be subject and subordinate to, all recorded easements, covenants, conditions, and restrictions,
declarations and other instruments now or hereafter affecting all or any portion of the Project. 
  
 ARTICLE 6 
  
 SERVICES AND UTILITIES 
  
 6.1 Standard Tenant Services. Landlord shall provide the following services on all days (unless otherwise stated below) during the Lease Term. 
  
 6.1.1 Subject to limitations imposed by all governmental rules, regulations and guidelines applicable thereto, Landlord
shall provide heating and air conditioning (“HVAC”) when necessary for normal comfort for normal office use in the Premises from 8:00 A.M. to 6:00 P.M. Monday through Friday, and on Saturdays from 9:00 A.M. to 1:00 P.M.
(collectively, the “Building Hours”), except for the date of observation of New Year’s Day, Independence Day, Labor Day, Memorial Day, Thanksgiving Day, Christmas Day and, at Landlord’s discretion, other locally or
nationally recognized holidays which are observed by other Comparable Buildings (collectively, the “Holidays”). In connection with construction of the “Tenant Improvements,” as that term is defined in the Work Letter,
Landlord shall install an override timer system in the Premises which will enable Tenant to obtain HVAC service for the Premises twenty-four hours per day, 7 days per week, subject to limitations imposed by all governmental rules, regulations and
guidelines applicable thereto. Costs associated with HVAC service to the Premises during other than Building Hours shall be paid by Tenant pursuant to the terms of Section 6.2 below. 
  
 6.1.2 Subject to limitations imposed by governmental rules, regulations, and/or guidelines applicable thereto, Landlord
shall provide electricity to the Premises (including adequate electrical wiring and facilities for connection to Tenant’s lighting fixtures and incidental use equipment) for lighting and power suitable for the Permitted Use as determined by
Landlord, provided that Tenant’s electrical usage shall be subject to applicable laws and regulations, including Title 24. Tenant shall bear the cost of replacement of lamps, starters and ballasts for non-Building standard lighting fixtures
within the Premises. 
  
 6.1.3 Landlord shall provide city water
from the regular Building outlets for drinking, lavatory and toilet purposes in the Building Common Areas. 
  
 6.1.4 Landlord shall provide janitorial services to the Premises, except the date of observation of the Holidays, in and about the Premises and window
washing services in a manner consistent with other Comparable Buildings. Notwithstanding the foregoing to the 
  

 -18- 

 contrary, during such portion of the Lease Term as Tenant utilizes all or any portion of the Premises for Lab Use, in no
event shall Landlord be responsible for providing janitorial services to the Lab Premises, and Tenant, at Tenant’s sole cost and expense, shall provide the same. 
  
 6.1.5 Landlord shall provide nonexclusive, non-attended automatic passenger elevator service during the Building Hours, and
shall have one elevator available at all other times, including on the Holidays, except in the event of emergency. 
  
 6.1.6 Landlord shall provide nonexclusive freight elevator service subject to scheduling by Landlord. 
  
 Tenant shall cooperate fully with Landlord at all times and abide by all
regulations and requirements that Landlord may reasonably prescribe for the proper functioning and protection of the HVAC, electrical, mechanical and plumbing systems. 
  
 6.2 Overstandard Tenant Use. Tenant shall not, without Landlord’s prior written consent, use
heat-generating machines, machines other than normal fractional horsepower office machines, or equipment or lighting other than Building standard lights in the Premises, which may affect the temperature otherwise maintained by the air conditioning
system or increase the water normally furnished for the Premises by Landlord pursuant to the terms of Section 6.1 of this Lease. If Tenant uses water, electricity, heat or air conditioning in excess of that supplied by Landlord pursuant to Section
6.1 of this Lease, Tenant shall pay to Landlord, upon billing, the actual cost of such excess consumption, the cost of the installation, operation, and maintenance of equipment which is installed in order to supply such excess consumption, and the
cost of the increased wear and tear on existing equipment caused by such excess consumption; and Landlord may install devices to separately meter any increased use and in such event Tenant shall pay the increased cost directly to Landlord, on
demand, at the rates charged by the public utility company furnishing the same, including the cost of such additional metering devices. Tenant’s use of electricity shall never exceed the capacity of the feeders to the Project or the risers or
wiring installation, and subject to the terms of Section 29.32, below, Tenant shall not install or use or permit the installation or use of any computer or electronic data processing equipment in the Premises, without the prior written consent of
Landlord. If Tenant desires to use heat, ventilation or air conditioning during hours other than those for which Landlord is obligated to supply such utilities pursuant to the terms of Section 6.1 of this Lease, Tenant shall give Landlord such prior
notice, if any, as Landlord shall from time to time establish as appropriate, of Tenant’s desired use in order to supply such utilities, and Landlord shall supply such utilities to Tenant at such hourly cost to Tenant (which shall be treated as
Additional Rent) as Landlord shall from time to time establish. 
  
 6.3 Interruption of Use. Tenant agrees that Landlord shall not be liable for damages, by abatement of Rent or otherwise, for failure to furnish or delay in furnishing any service (including telephone and
telecommunication services), or for any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by breakage, repairs, replacements, or improvements, by any strike, lockout or other
labor trouble, by inability to secure electricity, gas, water, or other fuel at the Building or Project after reasonable effort to do so, by any riot or other dangerous condition, emergency, accident or casualty whatsoever, by act or default of
Tenant or other parties, or by any other cause beyond 
  

 -19- 

 Landlord’s reasonable control; and such failures or delays or diminution shall never be deemed to constitute an
eviction or disturbance of Tenant’s use and possession of the Premises or relieve Tenant from paying Rent or performing any of its obligations under this Lease. Furthermore, Landlord shall not be liable under any circumstances for a loss of, or
injury to, property or for injury to, or interference with, Tenant’s business, including, without limitation, loss of profits, however occurring, through or in connection with or incidental to a failure to furnish any of the services or
utilities as set forth in this Article 6. In the event that Tenant is prevented from using, and does not use, the Premises or any portion thereof as a result of (i) any failure of Landlord to provide access to the Premises (including, without
limitation, if access to the Premises is prevented as a result of the performance by Landlord of any Renovations, as defined in Section 29.30 below), or (ii) any failure of Landlord to provide essential services or utilities, to the extent required
by this Lease to be provided by Landlord (either such set of circumstances as set forth in items (i) and (ii) above to be known as an “Abatement Event”), then Tenant shall give Landlord written notice of such Abatement Event, and if such
Abatement Event continues for five (5) consecutive business days after Landlord’s receipt of any such notice (the “Eligibility Period”), then Base Rent shall be abated or reduced, as the case may be, after expiration of the
Eligibility Period for such time that Tenant continues to be so prevented from using, and does not use, the Premises or a portion thereof, in the proportion that the rentable area of the portion of the Premises that Tenant is prevented from using,
and does not use, bears to the total rentable area of the Premises. Such right to an abatement of Base Rent shall be Tenant’s sole and exclusive remedy at law or in equity for an Abatement Event. To the extent that an Abatement Event is caused
by fire or other casualty, Tenant’s right to an abatement of Base Rent in accordance with this Section 6.3 shall not be applicable and the terms of Article 11 below shall apply. 
  
 ARTICLE 7 
  
 REPAIRS 
  
 Tenant shall, at Tenant’s own expense, keep the Premises, including all improvements, fixtures and furnishings therein, and the floor or floors of
the Building on which the Premises are located, in good order, repair and condition at all times during the Lease Term. In addition, Tenant shall, at Tenant’s own expense, but under the supervision and subject to the prior approval of Landlord,
and within any reasonable period of time specified by Landlord, promptly and adequately repair all damage to the Premises and replace or repair all damaged, broken, or worn fixtures and appurtenances, except for damage caused by ordinary wear and
tear or damage caused by casualty (except to the extent the same is Tenant’s obligation to repair pursuant to Article 11 below), condemnation or other causes beyond the reasonable control of Tenant; provided however, that, at Landlord’s
option, if Tenant fails to make such repairs within ten (10) days after written notice from Landlord to Tenant (except that no such notice shall be required in an emergency), Landlord may, but need not, make such repairs and replacements, and Tenant
shall pay Landlord the cost thereof, including a percentage of the cost thereof (to be uniformly established for the Building and/or the Project) sufficient to reimburse Landlord for all overhead, general conditions, fees and other costs or expenses
arising from Landlord’s involvement with such repairs and replacements, forthwith upon being billed for same. Notwithstanding the foregoing, Landlord shall be responsible for repairs to the exterior walls, foundation and roof of the Building,
the structural portions of the floors of the Building, and the systems and equipment 
  

 -20- 

 of the Building; provided, however, that if such repairs are due to the negligence or willful misconduct of Tenant,
Landlord shall make such repairs at Tenant’s expense, subject to the provisions of Section 10.5 below. Upon reasonable prior notice to Tenant (except that no such notice shall be required in the event of emergency), Landlord may, but shall not
be required to, enter the Premises at all reasonable times to make such repairs, alterations, improvements or additions to the Premises or to the Project or to any equipment located in the Project as Landlord shall desire or deem necessary or as
Landlord may be required to do by governmental or quasi-governmental authority or court order or decree. Tenant hereby waives any and all rights under and benefits of subsection 1 of Section 1932 and Sections 1941 and 1942 of the California Civil
Code or under any similar law, statute, or ordinance now or hereafter in effect. 
  
 ARTICLE 8 
  
 ADDITIONS AND ALTERATIONS 
  
 8.1
Landlord’s Consent to Alterations. Tenant may not make any improvements, alterations, additions or changes to the Premises or any mechanical, plumbing or HVAC facilities or systems pertaining to the Premises, including, without
limitation, during such portion of the Lease Term as Tenant utilizes all or any portion of the Premises for Lab Use, any improvements, alterations, additions or changes to the Lab Premises for purposes of the Lab Use (collectively, the
“Alterations”) without first procuring the prior written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less than thirty (30) days prior to the commencement thereof, and which consent shall
not be unreasonably withheld by Landlord, provided it shall be deemed reasonable for Landlord to withhold its consent to any Alteration which adversely affects the structural portions (including, without limitation, the structural integrity of the
floor slab) or the systems or equipment of the Building or is visible from the exterior of the Building. Notwithstanding the foregoing, Tenant shall have the right, without Landlord’s consent but upon at least ten (10) business days prior
written notice to Landlord (“Tenant’s Cosmetic Alteration Notice”), to make strictly cosmetic, non-structural additions and alterations to the Premises that meet all of the following conditions: (i) do not involve the
expenditure of more than $10,000.00 in any one instance or in the aggregate in any given year of the Lease Term; (ii) do not affect the exterior appearance of the Building; (iii) do not affect the Base Building (as defined in Section 8.2 below),
including, without limitation, any HVAC, mechanical, electrical, plumbing or other Building system; and (iv) do not require a building permit from the applicable governmental authority for the performance thereof (each, a “Cosmetic
Alteration”); provided, however, that Tenant shall utilize for the performance of any such Cosmetic Alteration only contractors, subcontractors, materials, mechanics and materialmen selected by Tenant from a list provided and approved by
Landlord, and, upon Landlord’s request, Tenant shall remove any such Cosmetic Alteration upon the expiration or any earlier termination of the Lease Term. Tenant shall have the right to request, as part of Tenant’s Cosmetic Alteration
Notice, a determination by Landlord as to whether the subject Cosmetic Alteration will be required to be removed upon the expiration or earlier termination of the Lease Term, in which event Landlord shall notify Tenant of such determination within
ten (10) business days following Landlord’s receipt of the applicable Tenant’s Cosmetic Alteration Notice. The construction of the initial improvements to the Premises shall be governed by the terms of the Work Letter and not the terms of
this Article 8. 
  

 -21- 

 8.2 Manner of Construction. Subject to the last sentence of Section 8.1 above, Landlord may
impose, as a condition of its consent to any and all Alterations or repairs of the Premises or about the Premises, such requirements as Landlord in its discretion may deem desirable, including, but not limited to, the requirement that Tenant utilize
for such purposes only contractors, subcontractors, materials, mechanics and materialmen selected by Tenant from a list provided and approved by Landlord, and the requirement that upon Landlord’s request, Tenant shall, at Tenant’s expense,
remove such Alterations upon the expiration or any early termination of the Lease Term. As part of Tenant’s written request for Landlord’s consent to a particular Alteration, Tenant shall have the right to request a determination by
Landlord as to whether the subject Alteration will be required to be removed upon the expiration or earlier termination of the Lease Term, in which event, provided that Landlord consents to such Alteration, Landlord’s notice of such consent
shall specify whether Landlord will require the subject Alteration to be so removed. Without limiting the foregoing, and notwithstanding anything to the contrary contained in this Lease, Tenant shall, at Tenant’s sole cost and expense, if all
or any portion of the Premises was utilized by Tenant for Lab Use, remove all Alterations in the Lab Premises upon the expiration or any earlier termination of the Lease Term and return the Lab Premises to a building standard tenant improved
condition, as determined by Landlord. Tenant shall construct such Alterations and perform such repairs in a good and workmanlike manner, in conformance with any and all applicable federal, state, county or municipal laws, rules and regulations and
pursuant to a valid building permit, issued by the city in which the Project is located, all in conformance with Landlord’s construction rules and regulations; provided, however, that prior to commencing to construct any Alteration, Tenant
shall meet with Landlord to discuss Landlord’s design parameters and code compliance issues. In the event Tenant performs any Alterations in the Premises which require or give rise to governmentally required changes to the “Base
Building,” as that term is defined below, then Landlord shall, at Tenant’s expense, make such changes to the Base Building. The “Base Building” shall include the structural portions of the Building, and the public
restrooms, elevators, exit stairwells and the systems and equipment located in the internal core of the Building on the floor or floors on which the Premises are located. In performing the work of any such Alterations, Tenant shall have the work
performed in such manner so as not to obstruct access to the Project or any portion thereof, by any other tenant of the Project, and so as not to obstruct the business of Landlord or other tenants in the Project. Tenant shall not use (and upon
notice from Landlord shall cease using) contractors, services, workmen, labor, materials or equipment that, in Landlord’s reasonable judgment, would disturb labor harmony with the workforce or trades engaged in performing other work, labor or
services in or about the Building or the Common Areas. In addition to Tenant’s obligations under Article 9 of this Lease, upon completion of any Alterations, Tenant agrees to cause a Notice of Completion to be recorded in the office of the
Recorder of the County in which the Project is located in accordance with Section 3093 of the Civil Code of the State of California or any successor statute, and Tenant shall deliver to the Project construction manager a reproducible copy of the
“as built” drawings of the Alterations as well as all permits, approvals and other documents issued by any governmental agency in connection with the Alterations. 
  
 8.3 Payment for Improvements. If payment is made directly to contractors, Tenant shall (i) comply with
Landlord’s requirements for final lien releases and waivers in connection with Tenant’s payment for work to contractors, and (ii) sign Landlord’s standard contractor’s rules and regulations. If Tenant orders any work directly
from Landlord, Tenant shall pay to Landlord an amount equal to three percent (3%) of the cost of such work to compensate 
  

 -22- 

 Landlord for all overhead, general conditions, fees and other costs and expenses arising from Landlord’s involvement
with such work. If Tenant does not order any work directly from Landlord, Tenant shall reimburse Landlord for Landlord’s reasonable, actual, out-of-pocket costs and expenses actually incurred in connection with Landlord’s review of such
work. 
  
 8.4 Construction
Insurance. In addition to the requirements of Article 10 of this Lease, in the event that Tenant makes any Alterations, prior to the commencement of such Alterations, Tenant shall provide Landlord with evidence that Tenant carries
“Builder’s All Risk” insurance in an amount reasonably approved by Landlord covering the construction of such Alterations, and such other insurance as Landlord may reasonably require, it being understood and agreed that all of such
Alterations shall be insured by Tenant pursuant to Article 10 of this Lease immediately upon completion thereof. In addition, Landlord may, in its discretion, require Tenant to obtain a lien and completion bond or some alternate form of security
satisfactory to Landlord in an amount sufficient to ensure the lien-free completion of such Alterations and naming Landlord as a co-obligee. 
  
 8.5 Landlord’s Property. All Alterations, improvements, fixtures, equipment and/or appurtenances which may be installed
or placed in or about the Premises, from time to time, shall be at the sole cost of Tenant and shall be and become the property of Landlord upon the expiration or any earlier termination of this Lease, except that Tenant may remove any Alterations,
improvements, fixtures and/or equipment which Tenant can substantiate to Landlord have not been paid for with any tenant improvement allowance funds provided to Tenant by Landlord, provided Tenant repairs any damage to the Premises and Building
caused by such removal and returns the affected portion of the Premises to a building standard tenant improved condition as reasonably determined by Landlord. Furthermore, Landlord, if Landlord has so provided with respect to any Cosmetic Alteration
pursuant to Section 8.1 above or with respect to any Alteration pursuant to Section 8.2 above, may, by written notice to Tenant prior to the end of the Lease Term, or given following any earlier termination of this Lease, require Tenant, at
Tenant’s expense, to remove any Alterations or improvements and to repair any damage to the Premises and Building caused by such removal and return the affected portion of the Premises to a building standard tenant improved condition as
reasonably determined by Landlord. If Tenant fails to complete such removal and/or to repair any damage caused by the removal of any Alterations or improvements in the Premises and return the affected portion of the Premises to a building standard
tenant improved condition as reasonably determined by Landlord. Landlord may do so and may charge the cost thereof to Tenant. Tenant hereby protects, defends, indemnifies and holds Landlord harmless from any liability, cost, obligation, expense or
claim of lien in any manner relating to the installation, placement, removal or financing of any such Alterations, improvements, fixtures and/or equipment in, on or about the Premises, which obligations of Tenant shall survive the expiration or
earlier termination of this Lease. 
  
 ARTICLE 9

  
 COVENANT AGAINST LIENS 
  
 Tenant shall keep the Project and Premises free from any liens or
encumbrances arising out of the work performed, materials furnished or obligations incurred by or on behalf of Tenant, and shall protect, defend, indemnify and hold Landlord harmless from and against any claims. 
  

 -23- 

 liabilities, judgments or costs (including, without limitation, reasonable attorneys’ fees and costs) arising out of
same or in connection therewith. Tenant shall give Landlord notice at least ten (10) business days prior to the commencement of any such work on the Premises (or such additional time as may be necessary under applicable laws) to afford Landlord the
opportunity of posting and recording appropriate notices of non-responsibility. Tenant shall remove any such lien or encumbrance by bond or otherwise within ten (10) business days after notice by Landlord, and if Tenant shall fail to do so, Landlord
may pay the amount necessary to remove such lien or encumbrance, without being responsible for investigating the validity thereof. The amount so paid shall be deemed Additional Rent under this Lease payable upon demand, without limitation as to
other remedies available to Landlord under this Lease. Nothing contained in this Lease shall authorize Tenant to do any act which shall subject Landlord’s title to the Building or Premises to any liens or encumbrances whether claimed by
operation of law or express or implied contract. Any claim to a lien or encumbrance upon the Building or Premises arising in connection with any such work or respecting the Premises not performed by or at the request of Landlord shall be null and
void, or at Landlord’s option shall attach only against Tenant’s interest in the Premises and shall in all respects be subordinate to Landlord’s title to the Project, Building and Premises. 
  
 ARTICLE 10 
  
 INSURANCE 
  
 10.1 Indemnification and Waiver. Tenant hereby assumes
all risk of damage to property or injury to persons in, upon or about the Premises from any cause whatsoever (including, but not limited to, any personal injuries resulting from a slip and fall in, upon or about the Premises) and agrees that
Landlord, its partners, subpartners and their respective officers, agents, servants, employees, and independent contractors (collectively, “Landlord Parties”) shall not be liable for, and are hereby released from any responsibility
for, any damage either to person or property or resulting from the loss of use thereof (including, without limitation, lost profits or other consequential damages), which damage is sustained by Tenant or by other persons claiming through Tenant.
Tenant shall indemnify, defend, protect, and hold harmless the Landlord Parties from any and all loss, cost, damage, expense and liability (including without limitation court costs and reasonable attorneys’ fees) incurred in connection with or
arising from any cause in, on or about the Premises (including, but not limited to, a slip and fall), any acts, omissions or negligence of Tenant or of any person claiming by, through or under Tenant, or of the contractors, agents, servants,
employees, invitees, guests or licensees of Tenant or any such person, in, on or about the Project or any breach of the terms of this Lease, either prior to, during, or after the expiration of the Lease Term, provided that the terms of the foregoing
indemnity shall not apply to the negligence or willful misconduct of Landlord. Should Landlord be named as a defendant in any suit brought against Tenant in connection with or arising out of Tenant’s occupancy of the Premises, Tenant shall pay
to Landlord its costs and expenses incurred in such suit, including without limitation, its actual professional fees such as reasonable appraisers’, accountants’ and attorneys’ fees. The provisions of this Section 10.1 shall survive
the expiration or sooner termination of this Lease with respect to any claims or liability arising in connection with any event occurring prior to such expiration or termination. 
  

 -24- 

 10.2 Tenant’s Compliance With Landlord’s Fire and Casualty
Insurance. Tenant shall, at Tenant’s expense, comply with all insurance company requirements pertaining to the use of the Premises. If Tenant’s conduct or use of the Premises causes any increase in the premium for such insurance
policies then Tenant shall reimburse Landlord for any such increase. Tenant, at Tenant’s expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National Board of Fire
Underwriters) and with any similar body. 
  
 10.3
Tenant’s Insurance. Tenant shall maintain the following coverages in the following amounts. 
  
 10.3.1 Commercial General Liability Insurance covering the insured against claims of bodily injury, personal injury and property damage (including loss of
use thereof) arising out of Tenant’s operations, and contractual liabilities (covering the performance by Tenant of its indemnity agreements) including a Broad Form endorsement covering the insuring provisions of this Lease and the performance
by Tenant of the indemnity agreements set forth in Section 10.1 of this Lease, for limits of liability not less than: 
  

			
	 Bodily Injury and Property Damage
 Liability
	  	 $2,000,000 each occurrence
 $3,000,000 annual
aggregate

		
	 Personal Injury Liability
	  	$2,000,000 each occurrence
	 	  	 $3,000,000 annual aggregate
 0% Insured’s
participation

  
 10.3.2 Physical Damage
Insurance covering (i) all office furniture, business and trade fixtures, office equipment, free-standing cabinet work, movable partitions, merchandise and all other items of Tenant’s property on the Premises installed by, for, or at the
expense of Tenant, (ii) the Tenant Improvements and any other improvements which exist in the Premises as of the Lease Commencement Date (excluding the Base Building) (collectively, the “Original Improvements”), and (iii) all other
improvements, alterations and additions to the Premises. Such insurance shall be written on an “all risks” of physical loss or damage basis, for the full replacement cost value (subject to reasonable deductible amounts) new without
deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include coverage for damage or other loss caused by fire or other peril including, but not limited to, vandalism
and malicious mischief, theft, water damage of any type, including sprinkler leakage, bursting or stoppage of pipes, and explosion, and providing business interruption coverage for a period of one year. 
  
 10.3.3 Worker’s Compensation and Employer’s Liability or other
similar insurance pursuant to all applicable state and local statutes and regulations. 
  
 10.4 Form of Policies. The minimum limits of policies of insurance required of Tenant under this Lease shall in no event limit the liability of Tenant under this Lease. Such insurance shall
(i) name Landlord, and any other party Landlord so specifies, as an additional insured, including Landlord’s managing agent, if any; (ii) specifically cover the liability assumed 
  

 -25- 

 by Tenant under this Lease, including, but not limited to, Tenant’s obligations under Section 10.1 of this Lease;
(iii) be issued by an insurance company having a rating of not less than A-:VIII in Best’s Insurance Guide or which is otherwise acceptable to Landlord and licensed to do business in the State of California; (iv) be primary insurance as to all
claims thereunder and provide that any insurance carried by Landlord is excess and is non-contributing with any insurance requirement of Tenant; (v) be in form and content reasonably acceptable to Landlord; and (vi) provide that said insurance shall
not be canceled or coverage changed unless thirty (30) days’ prior written notice shall have been given to Landlord and any mortgagee of Landlord. Tenant shall deliver said policy or policies or certificates thereof to Landlord on or before the
Lease Commencement Date and at least thirty (30) days before the expiration dates thereof. In the event Tenant shall fail to procure such insurance, or to deliver such policies or certificate, Landlord may, at its option, procure such policies for
the account of Tenant, and the cost thereof shall be paid to Landlord within five (5) days after delivery to Tenant of bills therefor. 
  
 10.5 Subrogation. Landlord and Tenant intend that their respective property loss risks shall be borne by reasonable insurance
carriers to the extent above provided, and Landlord and Tenant hereby agree to look solely to, and seek recovery only from, their respective insurance carriers in the event of a property loss to the extent that such coverage is agreed to be provided
hereunder. The parties each hereby waive all rights and claims against each other for such losses, and waive all rights of subrogation of their respective insurers, provided such waiver of subrogation shall not affect the right to the insured to
recover thereunder. The parties agree that their respective insurance policies are now, or shall be, endorsed such that the waiver of subrogation shall not affect the right of the insured to recover thereunder, so long as no material additional
premium is charged therefor. 
  
 10.6 Additional
Insurance Obligations. Tenant shall carry and maintain during the entire Lease Term, at Tenant’s sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 10 and such other
reasonable types of insurance coverage and in such reasonable amounts covering the Premises and Tenant’s operations therein, as may be reasonably requested by Landlord. Notwithstanding the foregoing. Tenant shall not be required to increase the
policy limits required hereunder more than once during the initial Lease Term, and in no event shall Tenant be required to increase such policy limits during the first two (2) years of the Lease Term. 
  
 10.7 Environmental Insurance. In the event that during
the Lease Term Tenant utilizes all or any portion of the Premises for Lab Use, the provisions of this Section 10.7 shall apply. Landlord may, at the option of Landlord, maintain during all or any portion of the Lease Term “Pollution Legal
Liability Environmental Insurance,” as that term is set forth below; provided, however, that to the extent Tenant is not in default of this Lease (beyond any applicable notice and cure periods). Tenant shall have the option, upon thirty (30)
days written notice to Landlord, to itself carry such Pollution Legal Liability Environmental Insurance in lieu of Landlord carrying such insurance; provided further, however, to the extent Tenant elects to carry such Pollution Legal Liability
Environment Insurance pursuant to the foregoing option, Tenant shall comply with the express coverage requirements set forth hereinbelow and such insurance coverage shall otherwise comply with the provisions of Section 10.4, above. For
purposes of this Lease, the “Pollution Legal Liability Environmental Insurance” (also known as an “Owner’s Policy” of environmental insurance) shall mean insurance (1) from an insurance 
  

 -26- 

 carrier with a credit rating of no less than A—X in Best’s Insurance Guide, and (2) providing, at a minimum,
the following: (a) an initial three (3)-year policy term (with successive 1-year terms renewable on a rolling annual basis, until such time as the policy term equals or exceeds the Lease Expiration Date), (b) $2,000,000 coverage per incident or
occurrence, (c) $2,000,000 aggregate coverage, (d) a deductible or self-insured retention of no more than $100,000, and (e) coverage for: (A) known and unknown pre-existing conditions; (B) unknown and later discovered conditions; (C) on-site and
off-site third-party claims for bodily injury or property damage; and (D) legal defense expenses. Furthermore, the policy of insurance must include an automatic extended reporting period that provides the Insured a period of no less than sixty (60)
days following the effective date of termination of coverage in which to provide written notice to the insurance carrier of claims first made and reported within the automatic extended reporting period. All other terms, coverage, exclusions, or
conditions of the policy shall be at Landlord’s sole and complete discretion. 
  
 ARTICLE 11 
  
 DAMAGE AND DESTRUCTION 
  
 11.1 Repair of Damage to Premises by Landlord. Tenant shall promptly notify Landlord of any damage to the Premises resulting from fire or any other casualty. If the Premises or any Common Areas serving or
providing access to the Premises shall be damaged by fire or other casualty, Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters beyond Landlord’s reasonable control (specifically
including, without limitation, if Tenant utilizes all or any portion of the Premises for Lab Use, any requirement to obtain any license, clearance or other authorization of any kind required to enter into and restore the Premises issued by any
governmental or quasi-governmental agency having jurisdiction over the use, storage, release or removal of “Hazardous Materials,” as that term is set forth in Section 29.33 of this Lease, below, in, on or about the Premises (collectively,
the “Hazardous Materials Clearances”), which Hazardous Materials Clearances shall be obtained by Tenant), and subject to all other terms of this Article 11, restore the Base Building and such Common Areas. Such restoration shall be
to substantially the same condition of the Base Building and the Common Areas prior to the casualty, except for modifications required by zoning and building codes and other laws or by the holder of a mortgage on the Building or Project or any other
modifications to the Common Areas deemed desirable by Landlord, which are consistent with the character of the Project, provided that access to the Premises and any common restrooms serving the Premises shall not be materially impaired. Upon the
occurrence of any damage to the Premises, upon notice (the “Landlord Repair Notice”) to Tenant from Landlord, Tenant shall assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant under
Tenant’s insurance required under Section 10.3.2(ii) of this Lease, and Landlord shall repair any injury or damage to the Original Improvements installed in the Premises and shall return the Original Improvements to their original condition;
provided that if the cost of such repair by Landlord exceeds the amount of insurance proceeds received by Landlord from Tenant’s insurance carrier, as assigned by Tenant, the cost of such repairs shall be paid by Tenant to Landlord prior to
Landlord’s commencement of repair of the damage. In the event that Landlord does not deliver the Landlord Repair Notice within sixty (60) days following the date the casualty becomes known to Landlord, and provided that Landlord does not elect
to terminate this Lease pursuant to Section 11.2 below, Tenant shall, at its sole cost and expense, 
  

 -27- 

 repair any injury or damage to the Original Improvements installed in the Premises and shall return the Original
Improvements to their original condition. Whether or not Landlord delivers a Landlord Repair Notice, prior to the commencement of construction, Tenant shall submit to Landlord, for Landlord’s review and approval, all plans, specifications and
working drawings relating thereto, and Landlord shall reasonably approve the contractors to perform such improvement work. Landlord shall use commercially reasonable efforts to minimize, to the extent practicable, interference with Tenant’s use
of the Premises resulting from repairs performed by Landlord pursuant to this Section 11.1, and Landlord shall use reasonable due diligence in performing the same. Notwithstanding the foregoing, Landlord shall not be liable for any inconvenience or
annoyance to Tenant or its visitors, or injury to Tenant’s business resulting in any way from such damage or the repair thereof; provided however, that if such fire or other casualty shall have damaged the Premises or Common Areas necessary to
Tenant’s occupancy for the purposes permitted under this Lease, and the Premises are not occupied by Tenant as a result thereof, then during the time and to the extent the Premises are unfit for use for the purposes permitted under this Lease
and are not used by Tenant for purposes of conducting business as a result thereof, the Base Rent shall be abated in proportion to the ratio that the amount of rentable square feet of the Premises which is unfit for use for the purposes permitted
under this Lease, and which is not so used by Tenant, bears to the total rentable square feet of the Premises; provided further, however, that, if, as a result of Tenant’s utilization of all or any portion of the Premises for Lab Use, any
Hazardous Materials Clearances are required to be obtained by Tenant before such restoration can begin, such abatement of Base Rent shall continue for only so long as Tenant, in Landlord’s reasonable judgment, diligently pursues obtaining such
required Hazardous Materials Clearances. In the event that Landlord shall not deliver the Landlord Repair Notice, Tenant’s right to Base Rent abatement pursuant to the preceding sentence shall terminate as of the date which is reasonably
determined by Landlord to be the date Tenant should have completed repairs to the Premises assuming Tenant used reasonable due diligence in connection therewith, subject to extension for Force Majeure (which shall in no event include the casualty
event which necessitated the repairs). 
  
 11.2
Landlord’s Option to Repair. Notwithstanding the terms of Section 11.1 of this Lease, Landlord may elect not to rebuild and/or restore the Premises, Building and/or Project, and instead terminate this Lease, by notifying Tenant in
writing of such termination within sixty (60) days after the date of discovery of the damage, such notice to include a termination date giving Tenant sixty (60) days to vacate the Premises, but Landlord may so elect only if the Building or Project
shall be damaged by fire or other casualty or cause, whether or not the Premises are affected, and one or more of the following conditions is present: (i) in Landlord’s reasonable judgment, repairs cannot reasonably be completed within one
hundred eighty (180) days after the date of discovery of the damage (when such repairs are made without the payment of overtime or other premiums); (ii) the holder of any mortgage on the Building or Project or ground lessor with respect to the
Building or Project shall require that the insurance proceeds or any portion thereof be used to retire the mortgage debt, or shall terminate the ground lease, as the case may be; (iii) the damage is not fully covered by Landlord’s insurance
policies (exclusive of deductibles); (iv) the damage occurs during the last twelve (12) months of the Lease Term; or (v) any owner of any other portion of the Project, other than Landlord, does not intend to repair the damage to such portion of the
Project. If, in Landlord’s reasonable judgment, repairs cannot reasonably be completed within one hundred eighty (180) days after the date of discovery of the damage (when such repairs are made without the payment of overtime or other
premiums), and 
  

 -28- 

 provided that Landlord has not elected to terminate this Lease pursuant to the immediately preceding sentence, Landlord,
by written notice to Tenant within sixty (60) days after the date of discovery of the damage, shall inform Tenant of Landlord’s good faith estimate of the amount of time in which such repairs can reasonably be completed (when such repairs are
made without the payment of overtime or other premiums), and Tenant shall have the right, exercisable by written notice to Landlord delivered not later than thirty (30) days following Tenant’s receipt of Landlord’s repair notice, to
terminate this Lease. Such termination shall be effective sixty (60) days following the date of Tenant’s termination notice. Notwithstanding the foregoing to the contrary. Tenant shall have the right to terminate this Lease under this Section
11.2 only if each of the following conditions is satisfied: (a) in Landlord’s reasonable judgment, repairs cannot reasonably be completed within one hundred eighty (180) days after the date of discovery of the damage (when such repairs are made
without the payment of overtime or other premiums), or the damage occurs during the last twelve (12) months of the Lease Term; (b) Tenant is not then in default under this Lease (beyond any applicable notice and cure periods); (c) as a result of the
damage, Tenant cannot reasonably conduct business from the Premises; and (d) as a result of the damage, Tenant does not occupy or use any substantial portion of the Premises. 
  
 11.3 Waiver of Statutory Provisions. The provisions of this Lease, including this Article 11,
constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, the Building or the Project, and any statute or regulation of the State of California, including,
without limitation, Sections 1932(2) and 1933(4) of the California Civil Code, with respect to any rights or obligations concerning damage or destruction in the absence of an express agreement between the parties, and any other statute or
regulation, now or hereafter in effect, shall have no application to this Lease or any damage or destruction to all or any part of the Premises, the Building or the Project. 
  
 ARTICLE 12 
  
 NONWAIVER 
  
 No provision of this Lease shall be deemed waived by either party hereto unless expressly waived in a writing signed thereby. The waiver by either party
hereto of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of Rent hereunder
by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord’s knowledge of
such preceding breach at the time of acceptance of such Rent. No acceptance of a lesser amount than the Rent herein stipulated shall be deemed a waiver of Landlord’s right to receive the full amount due. nor shall any endorsement or statement
on any check or payment or any letter accompanying such check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the full amount due. No receipt of
monies by Landlord from Tenant after the termination of this Lease shall in any way alter the length of the Lease Term or of Tenant’s right of possession hereunder, or after the giving of any notice shall reinstate, continue or extend the Lease
Term or affect any notice given Tenant prior to the receipt of such monies, it being agreed that after the service of notice or 
  

 -29- 

 the commencement of a suit, or after final judgment for possession of the Premises, Landlord may receive and collect any
Rent due, and the payment of said Rent shall not waive or affect said notice, suit or judgment. 
  
 ARTICLE 13 
  
 CONDEMNATION 
  
 If the whole or any part
of the Premises, Building or Project shall be taken by power of eminent domain or condemned by any competent authority for any public or quasi-public use or purpose, or if any adjacent property or street shall be so taken or condemned, or
reconfigured or vacated by such authority in such manner as to require the use, reconstruction or remodeling of any part of the Premises, Building or Project, or if Landlord shall grant a deed or other instrument in lieu of such taking by eminent
domain or condemnation, Landlord shall have the option to terminate this Lease effective as of the date possession is required to be surrendered to the authority. If more than twenty-five percent (25%) of the rentable square feet of the Premises is
taken, or if access to the Premises is substantially impaired, in each case for a period in excess of one hundred eighty (180) days, Tenant shall have the option to terminate this Lease effective as of the date possession is required to be
surrendered to the authority. Tenant shall not because of such taking assert any claim against Landlord or the authority for any compensation because of such taking and Landlord shall be entitled to the entire award or payment in connection
therewith, except that Tenant shall have the right to file any separate claim available to Tenant for any taking of Tenant’s personal property and fixtures belonging to Tenant and removable by Tenant upon expiration of the Lease Term pursuant
to the terms of this Lease, and for moving expenses, so long as such claims do not diminish the award available to Landlord, its ground lessor with respect to the Building or Project or its mortgagee, and such claim is payable separately to Tenant.
Base Rent and Tenant’s Share of Building Direct Expenses shall be apportioned as of the date of such termination. If any part of the Premises shall be taken and this Lease shall not be so terminated, the Base Rent and Tenant’s Share of
Building Direct Expenses shall be proportionately abated. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of the California Code of Civil Procedure. Notwithstanding anything to the contrary contained in
this Article 13, in the event of a temporary taking of all or any portion of the Premises for a period of one hundred eighty (180) days or less, then this Lease shall not terminate but the Base Rent and Tenant’s Share of Building Direct
Expenses shall be abated for the period of such taking in proportion to the ratio that the amount of rentable square feet of the Premises taken bears to the total rentable square feet of the Premises. Landlord shall be entitled to receive the entire
award made in connection with any such temporary taking. 
  
 ARTICLE 14 
  
 ASSIGNMENT AND
SUBLETTING 
  
 14.1 Transfers. Tenant
shall not mortgage, pledge, hypothecate, encumber or permit any lien to attach to this Lease or any interest hereunder. Except as provided in Section 14.8 below, Tenant shall not, without the prior written consent of Landlord, which consent shall
not be unreasonably withheld, assign or otherwise transfer this Lease or any interest hereunder, permit any assignment or other transfer of this Lease, or any interest hereunder, by operation of 
  

 -30- 

 law, sublet the Premises or any part thereof, or enter into any license or concession agreements or otherwise permit the
occupancy or use of the Premises or any part thereof by any persons other than Tenant and its employees and contractors (all of the foregoing are hereinafter sometimes referred to collectively as “Transfers” and any person to
whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a “Transferee”). If Tenant desires Landlord’s consent to any Transfer, Tenant shall notify Landlord in writing, which notice (the
“Transfer Notice”) shall include (i) the proposed effective date of the Transfer, which shall not be less than thirty (30) days nor more than one hundred eighty (180) days after the date of delivery of the Transfer Notice,
(ii) a description of the portion of the Premises to be transferred (the “Subject Space”), (iii) all of the terms of the proposed Transfer and the consideration therefor, including calculation of the “Transfer Premium”, as
that term is defined in Section 14.3 below, in connection with such Transfer, the name and address of the proposed Transferee, and a copy of all existing executed and/or proposed documentation pertaining to the proposed Transfer, including all
existing operative documents to be executed to evidence such Transfer or the agreements incidental or related to such Transfer, provided that Landlord shall have the right to require Tenant to utilize Landlord’s standard form of consent in
connection with the documentation of Landlord’s consent, if any, to such Transfer, (iv) current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, business credit and personal references and
history of the proposed Transferee and any other information reasonably required by Landlord which will enable Landlord to determine the financial responsibility, character, and reputation of the proposed Transferee, nature of such Transferee’s
business and proposed use of the Subject Space, and (v) an executed estoppel certificate from Tenant in the form attached hereto as Exhibit E. Any Transfer made without Landlord’s prior written consent shall, at Landlord’s
option, be null, void and of no effect, and shall, at Landlord’s option, constitute a default by Tenant under this Lease. Whether or not Landlord consents to any proposed Transfer, Tenant shall pay Landlord’s reasonable review and
processing fees, as well as any actual, reasonable professional fees (including, without limitation, attorneys’, accountants’, architects’, engineers’ and consultants’ fees) incurred by Landlord, within thirty (30) days
after written request by Landlord. 
  
 14.2
Landlord’s Consent. Landlord shall not unreasonably withhold or delay its consent to any proposed Transfer of the Subject Space to the Transferee on the terms specified in the Transfer Notice. Without limitation as to other
reasonable grounds for withholding consent, the parties hereby agree that it shall be reasonable under this Lease and under any applicable law for Landlord to withhold consent to any proposed Transfer where one or more of the following apply:

  
 14.2.1 The Transferee is of a character or reputation or
engaged in a business which is not consistent with the quality of the Building or the Project; 
  
 14.2.2 The Transferee intends to use the Subject Space for purposes other than general office use consistent with a first class office building; 
  
 14.2.3 The Transferee is either a governmental agency or instrumentality thereof; 
  

 -31- 

 14.2.4 The Transferee is not a party of reasonable financial worth and/or financial stability in light of
the responsibilities to be undertaken in connection with the Transfer on the date consent is requested; 
  
 14.2.5 The proposed Transfer would cause a violation of another lease for space in the Project, or would give an occupant of the Project a right to cancel
its lease; or 
  
 14.2.6 Either the proposed Transferee, or any
person or entity which directly or indirectly, controls, is controlled by, or is under common control with, the proposed Transferee, (i) occupies space in the Project at the time of the request for consent, or (ii) is negotiating with Landlord or
has negotiated with Landlord during the four (4) month period immediately preceding the date Landlord receives the Transfer Notice, to lease space in the Project. 
  
 If Landlord consents to any Transfer pursuant to the terms of this Section 14.2 (and does not exercise any recapture rights
Landlord may have under Section 14.4 of this Lease), Tenant may within six (6) months after Landlord’s consent, but not later than the expiration of said six-month period, enter into such Transfer of the Premises or portion thereof, upon
substantially the same terms and conditions as are set forth in the Transfer Notice furnished by Tenant to Landlord pursuant to Section 14.1 of this Lease, provided that if there are any changes in the terms and conditions from those specified in
the Transfer Notice (i) such that Landlord would initially have been entitled to refuse its consent to such Transfer under this Section 14.2, or (ii) which would cause the proposed Transfer to be more favorable to the Transferee than the terms set
forth in Tenant’s original Transfer Notice, Tenant shall again submit the Transfer to Landlord for its approval and other action under this Article 14 (including Landlord’s right of recapture, if any, under Section 14.4 of this Lease).
Notwithstanding anything to the contrary contained herein, if Tenant claims that Landlord has unreasonably withheld or delayed its consent under this Section 14.2 or otherwise has breached or acted unreasonably under this Article 14, Tenant’s
sole remedy shall be to seek injunctive relief without monetary damages or, alternatively, to seek actual monetary damages from Landlord, as more particularly described below in this Section 14.2, and Tenant hereby waives all other remedies,
including, without limitation, any right at law or equity to terminate this Lease. In the event Tenant seeks actual monetary damages from Landlord as a result of a claimed breach by Landlord under this Article 14, such damages shall be limited to an
amount equal to the rent Tenant would have been entitled to receive under the proposed Transfer (excluding any options contained therein, including without limitation any options to extend or expand), less (1) that portion of the Transfer
Premium (as defined in Section 14.3 below) that Landlord would have been entitled to receive as a result of such Transfer, and (2) the amount that Landlord proves could have been reasonably avoided by Tenant’s efforts to mitigate its
damages. Such actual monetary damages shall be computed by discounting the amount thereof at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 
  
 14.3 Transfer Premium. If Landlord consents to a
Transfer, as a condition thereto which the parties hereby agree is reasonable, Tenant shall pay to Landlord fifty percent (50%) of any “Transfer Premium,” as that term is defined in this Section 14.3, received by Tenant from such
Transferee (provided, however, that Landlord’s rights under this Section 14.3 shall in no event be applicable with respect to an assignment or sublease in accordance with the terms of Section 14.8 below). “Transfer
Premium” shall mean all rent, additional rent or other 
  

 -32- 

 consideration received by Tenant in connection with the Transfer in excess of the Base Rent and Tenant’s Share of
Building Direct Expenses payable by Tenant under this Lease during the term of the Transfer, on a per rentable square foot basis if less than all of the Premises is transferred, after deducting the actual, reasonable expenses incurred by Tenant
(which expenses shall be amortized on a straight line basis over the term of the Transfer) for (A) any changes, alterations or improvements to the Premises paid for by Tenant in connection with the Transfer, (B) any free rent, improvement allowance
or other similar economic concession paid or provided by Tenant in connection with the Transfer, and (D) brokerage commissions and attorneys’ fees paid by Tenant in connection with the Transfer. “Transfer Premium” shall also include,
but not be limited to, key money, bonus money or other cash consideration paid by Transferee to Tenant in connection with such Transfer, and any payment in excess of fair market value for services rendered by Tenant to Transferee or for assets,
fixtures, inventory, equipment, or furniture transferred by Tenant to Transferee in connection with such Transfer. The determination of the amount of Landlord’s applicable share of the Transfer Premium shall be made on a monthly basis as rent
or other consideration is received by Tenant under the Transfer. 
  
 14.4 Landlord’s Option as to Subject Space. Notwithstanding anything to the contrary contained in this Article 14 (provided, however, that Landlord’s rights under this Section 14.4 shall in no event be applicable
with respect to an assignment or sublease in accordance with the terms of Section 14.8 below), Landlord shall have the option, by giving written notice to Tenant within thirty (30) days after receipt of any Transfer Notice, to recapture the Subject
Space. Such recapture shall cancel and terminate this Lease with respect to the Subject Space as of the date stated in the Transfer Notice as the effective date of the proposed Transfer until the last day of the term of the Transfer as set forth in
the Transfer Notice. In the event of a recapture by Landlord, if this Lease shall be canceled with respect to less than the entire Premises, the Base Rent and Tenant’s Share of Building Direct Expenses shall be prorated on the basis of the
number of rentable square feet retained by Tenant in proportion to the number of rentable square feet contained in the Premises, and this Lease as so amended shall continue thereafter in full force and effect, and upon request of either party, the
parties shall execute written confirmation of the same. If Landlord declines, or fails to elect in a timely manner, to recapture the Subject Space under this Section 14.4, then, so long as Landlord has consented to such Transfer, as provided in this
Article 14. Tenant shall have the right to Transfer such Subject Space, as provided in this Article 14. Notwithstanding anything herein to the contrary, Tenant shall have the right to sublease up to fifty percent (50%) of the rentable square footage
of the Premises, in the aggregate, without such sublease(s) being subject to Landlord’s right of recapture as set forth herein. 
  
 14.5 Effect of Transfer. If Landlord consents to a Transfer, (i) the terms and conditions of this Lease shall in no way be deemed to have
been waived or modified, (ii) such consent shall not be deemed consent to any further Transfer by either Tenant or a Transferee, (iii) Tenant shall deliver to Landlord, promptly after execution, an original executed copy of all documentation
pertaining to the Transfer in form reasonably acceptable to Landlord, (iv) Tenant shall furnish upon Landlord’s request a complete statement, certified by an independent certified public accountant, or Tenant’s chief financial officer,
setting forth in detail the computation of any Transfer Premium Tenant has derived and shall derive from such Transfer, and (v) no Transfer relating to this Lease or agreement entered into with respect thereto, whether with or without
Landlord’s consent, shall relieve Tenant or any guarantor of the Lease from any liability 
  

 -33- 

 under this Lease, including, without limitation, in connection with the Subject Space. Landlord or its authorized
representatives shall have the right at all reasonable times, upon reasonable prior written notice, to audit the books, records and papers of Tenant relating to any Transfer, and shall have the right to make copies thereof. If the Transfer Premium
respecting any Transfer shall be found understated, Tenant shall, within thirty (30) days after demand, pay the deficiency, and if understated by more than three percent (3%), Tenant shall pay Landlord’s costs of such audit. 
  
 14.6 Additional Transfers. Except as provided in Section
14.8 below, for purposes of this Lease, the term “Transfer” shall also include (i) if Tenant is a partnership, the withdrawal or change, voluntary, involuntary or by operation of law, of fifty percent (50%) or more of the partners,
or transfer of fifty percent (50%) or more of partnership interests, within a twelve (12)-month period, or the dissolution of the partnership without immediate reconstitution thereof, and (ii) if Tenant is a closely held corporation (i.e., whose
stock is not publicly held and not traded through an exchange or over the counter), (A) the dissolution, merger, consolidation or other reorganization of Tenant or (B) the sale or other transfer of an aggregate of fifty percent (50%) or more of the
voting shares of Tenant (other than to immediate family members by reason of gift or death), within a twelve (12)-month period, or (C) the sale, mortgage, hypothecation or pledge of an aggregate of fifty percent (50%) or more of the value of the
unencumbered assets of Tenant within a twelve (12)-month period. 
  
 14.7 Occurrence of Default. Any Transfer hereunder shall be subordinate and subject to the provisions of this Lease, and if this Lease shall be terminated during the term of any Transfer, Landlord shall have the
right to: (i) treat such Transfer as cancelled and repossess the Subject Space by any lawful means, or (ii) require that such Transferee attorn to and recognize Landlord as its landlord under any such Transfer. If Tenant shall be in default under
this Lease, Landlord is hereby irrevocably authorized, as Tenant’s agent and attorney-in-fact, to direct any Transferee to make all payments under or in connection with the Transfer directly to Landlord (which Landlord shall apply towards
Tenant’s obligations under this Lease) until such default is cured. Such Transferee shall rely on any representation by Landlord that Tenant is in default hereunder, without any need for confirmation thereof by Tenant. Upon any assignment, the
assignee shall assume in writing all obligations and covenants of Tenant thereafter to be performed or observed under this Lease. No collection or acceptance of rent by Landlord from any Transferee shall be deemed a waiver of any provision of this
Article 14 or the approval of any Transferee or a release of Tenant from any obligation under this Lease, whether theretofore or thereafter accruing. In no event shall Landlord’s enforcement of any provision of this Lease against any Transferee
be deemed a waiver of Landlord’s right to enforce any term of this Lease against Tenant or any other person. If Tenant’s obligations hereunder have been guaranteed, Landlord’s consent to any Transfer shall not be effective unless the
guarantor also consents to such Transfer. 
  
 14.8 Non-Transfers. Notwithstanding anything to the contrary contained in Article 14 of this Lease, an assignment or subletting by Tenant of all or a portion of the Premises or this Lease to (i) a parent or
subsidiary of Tenant, or (ii) any person or entity which controls, is controlled by or under common control with Tenant, or (iii) any entity which purchases all or substantially all of the stock or assets of Tenant, or (iv) any entity into which
Tenant is merged or consolidated (all such persons or entities described in (i), (ii), (iii), and (iv) being sometimes 
  

 -34- 

 hereinafter referred to as “Affiliates”), shall not require Landlord’s consent and shall not be deemed a
Transfer under Article 14 of this Lease, provided that (a) any such Affiliate was not formed as a subterfuge to avoid the obligations of Article 14 of this Lease; (b) Tenant gives Landlord at least ten (10) days’ prior notice of any such
assignment or sublease to an Affiliate (or as soon thereafter as is permitted by applicable law or any underwriting or similar type agreement by which Tenant or such Affiliate is bound); (c) such Affiliate shall have, as of the effective date of any
such assignment or sublease, a tangible net worth, computed in accordance with generally accepted accounting principles, consistently applied, but excluding goodwill as an asset, which is sufficient to meet the obligations of Tenant under this Lease
and is equal to or greater than the net worth of Tenant as of the date of the Transfer; (d) any such assignment or sublease shall be subject and subordinate to all of the terms and provisions of this Lease, and such Affiliate shall assume, in a
written document reasonably satisfactory to Landlord and delivered to Landlord upon or prior to the effective date of such assignment or sublease, all the obligations of Tenant under this Lease with respect to the portion of the Premises which is
the subject of such assignment or sublease (other than, with respect to a sublease, the amount of Base Rent payable by Tenant); and (e) Tenant and any guarantor shall remain fully liable for all obligations to be performed by Tenant under this
Lease. 
  
 ARTICLE 15 
  
 SURRENDER OF PREMISES; OWNERSHIP AND 
 REMOVAL OF TRADE FIXTURES 
  
 15.1 Surrender of Premises. No act or thing done by Landlord or any agent or employee of Landlord during the Lease Term shall
be deemed to constitute an acceptance by Landlord of a surrender of the Premises unless such intent is specifically acknowledged in writing by Landlord. The delivery of keys to the Premises to Landlord or any agent or employee of Landlord shall not
constitute a surrender of the Premises or effect a termination of this Lease, whether or not the keys are thereafter retained by Landlord, and notwithstanding such delivery Tenant shall be entitled to the return of such keys at any reasonable time
upon request until this Lease shall have been properly terminated. The voluntary or other surrender of this Lease by Tenant, whether accepted by Landlord or not, or a mutual termination hereof, shall not work a merger, and at the option of Landlord
shall operate as an assignment to Landlord of all subleases or subtenancies affecting the Premises or terminate any or all such sublessees or subtenancies. 
  
 15.2 Removal of Tenant Property by Tenant. Upon the expiration of the Lease Term, or upon any earlier termination of this
Lease, Tenant shall, subject to the provisions of this Article 15, quit and surrender possession of the Premises to Landlord in good order and condition, reasonable wear and tear, damage caused by casualty (except to the extent the same is
Tenant’s obligation to repair pursuant to Article 11 above), condemnation and repairs which are specifically made the responsibility of Landlord hereunder excepted. Upon such expiration or termination, Tenant shall, without expense to Landlord,
remove or cause to be removed from the Premises all debris and rubbish, and such items of furniture, equipment, business and trade fixtures, free-standing cabinet work, movable partitions and other articles of personal property owned by Tenant or
installed or placed by Tenant at its expense in the Premises, and such similar articles of any other persons claiming under Tenant, as Landlord may, in its sole discretion, 

  

 -35- 

 
require to be removed, and Tenant shall repair at its own expense all damage to the Premises and Building resulting from such removal. 
 ARTICLE 16 
  
 HOLDING OVER 
  
 If Tenant holds over after the expiration of the Lease Term or earlier termination thereof, with the express or implied consent of Landlord, such tenancy
shall be from month-to-month only, and shall not constitute a renewal hereof or an extension for any further term, and in such case Rent shall be payable at a monthly rate, calculated on a per diem basis, equal to the product of (i) the Rent
applicable during the last rental period of the Lease Term under this Lease, and (ii) a percentage equal to (A) one hundred fifty percent (150%) with respect to the first sixty (60) days of such month-to-month tenancy, and (B) two hundred percent
(200%) thereafter. Such month-to-month tenancy shall be subject to every other applicable term, covenant and agreement contained herein. Nothing contained in this Article 16 shall be construed as consent by Landlord to any holding over by Tenant,
and Landlord expressly reserves the right to require Tenant to surrender possession of the Premises to Landlord as provided in this Lease upon the expiration or other termination of this Lease. The provisions of this Article 16 shall not be deemed
to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. If Tenant fails to surrender the Premises upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord
accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss, costs (including reasonable attorneys’ fees) and liability resulting from such failure, including, without limiting the generality of the
foregoing, any claims made by any succeeding tenant founded upon such failure to surrender and any lost profits to Landlord resulting therefrom. 
  
 ARTICLE 17 
  
 ESTOPPEL CERTIFICATES 
  
 Within ten (10) business days following a request in writing by either Landlord or Tenant, the other party shall execute, acknowledge and deliver to the
requesting party an estoppel certificate, which, (i) if Landlord is the requesting party, shall be substantially in the form of Exhibit E, attached hereto (or such other form as may be required by any existing or prospective mortgagee
or purchaser of the Project, or any portion thereof), indicating therein any exceptions thereto that may exist at that time, and shall also contain any other information reasonably requested by Landlord or Landlord’s existing or prospective
mortgagee or purchaser, and (ii) if Tenant is the requesting party, shall be in a commercially reasonable form. Any such certificate executed by Tenant may be relied upon by any existing or prospective mortgagee or purchaser of all or any portion of
the Project. Tenant shall execute and deliver whatever other instruments may be reasonably required for such purposes. Failure of Tenant to timely execute, acknowledge and deliver such estoppel certificate or other instruments shall constitute an
acceptance of the Premises and an acknowledgment by Tenant that statements included in the estoppel certificate or other instruments are true and correct, without exception. At any time during the Lease Term, Landlord may require Tenant to provide
Landlord with a current financial statement and financial statements of the two (2) years prior to the current financial 
  

 -36- 

 statement year. Such statements shall be prepared in accordance with generally accepted accounting principles
consistently applied and, if such is the normal practice of Tenant, shall be audited by an independent certified public accountant. Provided such information is not otherwise in the public domain, Landlord shall keep such financial statements
confidential, except that Landlord shall have the right to disclose such information to Landlord’s financial and legal consultants, to any manager or leasing agent for the Building or Project or to any current or prospective mortgagee, deed of
trust beneficiary, ground lessor or purchaser with respect to the Building or the Project, provided that each such party to whom Landlord discloses any such information shall also agree to keep such information confidential. Further, Landlord (or
any such other party to whom Landlord discloses any such information) may disclose such information (1) to the extent necessary to comply with any order of any government agency or any court of competent jurisdiction, or to comply with any reporting
or accounting requirements; (2) to the extent necessary to perform or enforce the terms of this Lease or any related documents; or (3) as otherwise required by applicable law. 
  
 ARTICLE 18  
  
 SUBORDINATION 
  
 This Lease shall be subject and subordinate to all present and future ground or underlying leases of the Building or Project and to the lien of any
mortgage, trust deed or other encumbrances now or hereafter in force against the Building or Project or any part thereof, if any, and to all renewals, extensions, modifications, consolidations and replacements thereof, and to all advances made or
hereafter to be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages, trust deeds or other encumbrances, or the lessors under such ground or underlying leases, require in writing that this Lease be superior
thereto. Tenant covenants and agrees in the event any proceedings are brought for the foreclosure of any such mortgage or deed in lieu thereof, or if any ground or underlying lease is terminated, to attorn, without any deductions or set-offs
whatsoever, to the lienholder or purchaser or any successors thereto upon any such foreclosure sale or deed in lieu thereof, or to the ground or underlying lessor, if so requested to do so by such purchaser or lienholder or ground or underlying
lessor, and to recognize such purchaser or lienholder or ground or underlying lessor as the lessor under this Lease, provided such lienholder or purchaser or ground or underlying lessor shall agree to accept this Lease and not disturb Tenant’s
occupancy, so long as Tenant timely pays the Rent and observes and performs the terms, covenants and conditions of this Lease to be observed and performed by Tenant. Landlord’s interest herein may be assigned as security at any time to any
lienholder. Tenant shall, within ten (10) business days of request by Landlord, execute such further instruments or assurances as Landlord may reasonably deem necessary to evidence or confirm the subordination or superiority of this Lease to any
such mortgages, trust deeds, ground leases or underlying leases. Tenant waives the provisions of any current or future statute, rule or law which may give or purport to give Tenant any right or election to terminate or otherwise adversely affect
this Lease and the obligations of the Tenant hereunder in the event of any foreclosure proceeding or sale. Upon written request by Tenant, Landlord shall use commercially reasonable efforts to obtain a subordination, non-disturbance and attornment
agreement from Landlord’s then-current mortgagee on such mortgagee’s then-current standard form of agreement. 
  

 -37- 

 ARTICLE 19  
  
 DEFAULTS: REMEDIES 
  
 19.1 Events of Default. The occurrence of any of the following shall constitute a default of this Lease by Tenant: 

 
 19.1.1 Any failure by Tenant to pay any Rent or any other charge required
to be paid under this Lease, or any part thereof, when due unless such failure is cured within three (3) days after written notice thereof; or 
  
 19.1.2 Except where a specific time period is otherwise set forth for Tenant’s performance in this Lease, in which event the failure to perform by
Tenant within such time period shall be a default by Tenant under this Section 19.1.2, any failure by Tenant to observe or perform any other provision, covenant or condition of this Lease to be observed or performed by Tenant where such failure
continues for thirty (30) days after written notice thereof from Landlord to Tenant; provided that if the nature of such default is such that the same cannot reasonably be cured within a thirty (30) day period, Tenant shall not be deemed to be in
default if it diligently commences such cure within such period and thereafter diligently proceeds to rectify and cure such default; or 
  
 19.1.3 Abandonment of the Premises by Tenant; or 
  
 19.1.4 The failure by Tenant to observe or perform according to the provisions of Articles 5, 14, 17 or 18 of this Lease where such failure continues for
more than two (2) business days after notice from Landlord. 
  
 In
any instance in which, pursuant to the foregoing provisions of this Section 19.1, a default by Tenant under this Lease does not arise prior to written notice from Landlord to Tenant, provided that such notice is prepared and served by Landlord in
accordance with the applicable requirements of California Code of Civil Procedure Sections 1161 et seq. or any similar or successor statutes, and provided further that the subject breach is not cured within the applicable cure period set
forth above in this Section 19.1, then the initial notice so served by Landlord shall be deemed to be the notice required under California Code of Civil Procedure Sections 1161 et seq. or any similar or successor statutes and no additional
notice with respect to such default, whether under California Code of Civil Procedure Sections 1161 et seq. or otherwise, shall be required to be served upon Tenant prior to or as a condition of Landlord’s pursuit of any and all remedies
for Tenant’s default. 
  
 19.2 Remedies
Upon Default. Upon the occurrence of any default by Tenant, as described in Section 19.1 above, Landlord shall have, in addition to any other remedies available to Landlord at law or in equity (all of which remedies shall be distinct,
separate and cumulative), the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever. 
  
 19.2.1 Terminate this Lease, in which event Tenant shall immediately
surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take 
  

 -38- 

 possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any part
thereof, without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant the following: 
  
 19.2.1.1 The worth at the time of award of any unpaid rent which has been earned at the time of such termination; plus 
  
 19.2.1.2 The worth at the time of award of the amount by which the unpaid
rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 
  
 19.2.1.3 The worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the
time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 
  
 19.2.1.4 Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations
under this Lease or which in the ordinary course of things would be likely to result therefrom, specifically including but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the Premises or any portion
thereof for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; and 
  
 19.2.1.5 At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable
law. 
  
 The term “rent” as used in this Section 19.2
shall be deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in Sections 19.2.1.1 and 19.2.1.2, above, the “worth at the time of
award” shall be computed by allowing interest at the rate set forth in Article 25 of this Lease, but in no case greater than the maximum amount of such interest permitted by law. As used in Section 19.2.1.3 above, the “worth at the time of
award” shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 
  
 19.2.2 Landlord shall have the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect
after lessee’s breach and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations). Accordingly, if Landlord does not elect to terminate this Lease on account of any
default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover all rent as it becomes due. 
  
 19.2.3 Landlord shall at all times have the rights and remedies (which shall
be cumulative with each other and cumulative and in addition to those rights and remedies available under Sections 19.2.1 and 19.2.2, above, or any law or other provision of this Lease), without prior demand or notice except as required by
applicable law, to seek any declaratory, injunctive or other equitable relief, and specifically enforce this Lease, or restrain or enjoin a violation or breach of any provision hereof. 
  

 -39- 

 19.3 Subleases of Tenant. Whether or not Landlord elects to terminate this
Lease on account of any default by Tenant, as set forth in this Article 19, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other consensual arrangements for possession entered into by Tenant and affecting
the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such subleases, licenses, concessions or arrangements. In the event of Landlord’s election to succeed to Tenant’s interest in any such subleases,
licenses, concessions or arrangements, Tenant shall, as of the date of notice by Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder. 
  
 19.4 Efforts to Relet. No re-entry or
repossession, repairs, maintenance, changes, alterations and additions, reletting, appointment of a receiver to protect Landlord’s interests hereunder, or any other action or omission by Landlord shall be construed as an election by Landlord to
terminate this Lease or Tenant’s right to possession, or to accept a surrender of the Premises, nor shall same operate to release Tenant in whole or in part from any of Tenant’s obligations hereunder, unless express written notice of such
intention is sent by Landlord to Tenant. Tenant hereby irrevocably waives any right otherwise available under any law to redeem or reinstate this Lease. 
  
 ARTICLE 20 
  
 COVENANT OF QUIET ENJOYMENT 
  
 Landlord covenants that Tenant, on paying the Rent, charges for services and other payments herein reserved and on keeping, observing and performing all
the other terms, covenants, conditions, provisions and agreements herein contained on the part of Tenant to be kept, observed and performed, shall, during the Lease Term, peaceably and quietly have, hold and enjoy the Premises subject to the terms,
covenants, conditions, provisions and agreements hereof without interference by any persons lawfully claiming by or through Landlord. The foregoing covenant is in lieu of any other covenant express or implied. 
  
 ARTICLE 21 
  
 LETTER OF CREDIT 
  
 21.1 Form and Amount. Concurrently with
Tenant’s execution of this Lease, Tenant shall deliver to Landlord, as protection for the full and faithful performance by Tenant of all of its obligations under this Lease and for all losses and damages Landlord may suffer as a result of any
breach or default by Tenant under this Lease, an irrevocable and unconditional negotiable standby letter of credit (the “Letter of Credit”), in the form attached hereto as Exhibit F and containing the terms required
herein, payable in the City of San Francisco, California, running in favor of Landlord and issued by a solvent, nationally recognized bank with a long term rating of BBB or higher, under the supervision of the Superintendent of Banks of the State of
California, or a national banking association, in the amount of One Hundred Forty-Three Thousand Six Hundred Forty and 00/100 Dollars ($143,640.00) (the “Letter of Credit Amount”). The Letter of Credit shall (i) be
“callable” at sight, irrevocable and unconditional, (ii) be maintained in effect, whether through replacement, renewal or extension, for the period from the Commencement Date and continuing until the date (the “LC Expiration
Date”) that is one sixty 
  

 -40- 

 (60) days after the expiration of the Lease Term, as the same may be extended from time to time, and Tenant shall deliver
a new Letter of Credit or certificate of renewal or extension to Landlord at least ninety (90) days prior to the expiration of the Letter of Credit then held by Landlord, without any action whatsoever on the part of Landlord, (iii) be fully
assignable by Landlord, its successors and assigns, (iv) permit partial draws and multiple presentations and drawings, and (v) be otherwise subject to the Uniform Customs and Practices for Documentary Credits (1993 Revision) International Chamber of
Commerce Publication #500. The form and terms of the Letter of Credit and the bank issuing the same (the “Bank”) shall be acceptable to Landlord, in Landlord’s sole discretion. Landlord hereby consents to Comerica Bank as the
Bank. Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the Letter of Credit if any of the following shall have occurred or be applicable: (1) such amount is due to Landlord under the terms
and conditions of this Lease, or (2) Tenant has filed a voluntary petition under the U.S. Bankruptcy Code or any state bankruptcy code (collectively, “Bankruptcy Code”), or (3) an involuntary petition has been filed against Tenant
under the Bankruptcy Code, or (4) the Bank has notified Landlord that the Letter of Credit will not be renewed or extended through the LC Expiration Date and Tenant has not replaced the Letter of Credit with another Letter of Credit that complies
with the terms and provisions of this Article 21 at least ninety (90) days prior to the expiration of the expiring Letter of Credit. The Letter of Credit will be honored by the Bank regardless of whether Tenant disputes Landlord’s right to draw
upon the Letter of Credit. 
  
 21.2 Transfer by
Landlord. The Letter of Credit shall also provide that Landlord, its successors and assigns, may, at any time and without notice to Tenant and without first obtaining Tenant’s consent thereto, transfer (one or more times) all or
any portion of its interest in and to the Letter of Credit to another party, person or entity, regardless of whether or not such transfer is separate from or as a part of the assignment by Landlord of its rights and interests in and to this Lease.
In the event of a transfer of Landlord’s interest in the Building, Landlord may transfer the Letter of Credit, in whole or in part, to the transferee and thereupon Landlord shall, without any further agreement between the parties, be released
by Tenant from all liability therefor, and it is agreed that the provisions hereof shall apply to every transfer or assignment of the whole or any portion of said Letter of Credit to a new landlord. In connection with any such transfer of the Letter
of Credit by Landlord, Tenant shall, at Tenant’s sole cost and expense, execute and submit to the Bank such applications, documents and instruments as may be necessary to effectuate such transfer, and Tenant shall be responsible for paying the
Bank’s transfer and processing fees in connection therewith. 
  
 21.3 Maintenance by Tenant. If, as a result of any drawing by Landlord on the Letter of Credit, the amount of the Letter of Credit shall be less than the Letter of Credit Amount, Tenant shall, within ten (10)
days thereafter, provide Landlord with additional letter(s) of credit in an amount equal to the deficiency, and any such additional letter(s) of credit shall comply with all of the provisions of this Article 21, and if Tenant fails to comply with
the foregoing, notwithstanding anything to the contrary contained in Article 19 above, the same shall constitute an incurable default by Tenant. Tenant further covenants and warrants that it will neither assign nor encumber the Letter of Credit or
any part thereof and that neither Landlord nor its successors or assigns will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. Without limiting the generality of the foregoing, if the Letter of Credit
expires earlier than the LC Expiration Date. Landlord will accept a renewal or replacement 
  

 -41- 

 thereof (such renewal or replacement letter of credit to be in effect and delivered to Landlord, as applicable, not later
than thirty (30) days prior to the expiration of the Letter of Credit), which shall be irrevocable and automatically renewable as above provided through the LC Expiration Date upon the same terms as the expiring Letter of Credit or such other terms
as may be acceptable to Landlord in its sole discretion. However, if the Letter of Credit is not timely renewed, or if Tenant fails to maintain the Letter of Credit in the amount and in accordance with the terms set forth in this Article 21,
Landlord shall have the right to present the Letter of Credit to the Bank in accordance with the terms of this Article 21, and the proceeds of the Letter of Credit may be applied by Landlord against any Rent payable by Tenant under this Lease that
is not paid when due and/or to pay for all losses and damages that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach or default by Tenant under this Lease. Any unused proceeds shall constitute
the property of Landlord and need not be segregated from Landlord’s other assets. Landlord agrees to pay to Tenant within thirty (30) days after the LC Expiration Date the amount of any proceeds of the Letter of Credit received by Landlord and
not applied against any Rent payable by Tenant under this Lease that was not paid when due or used to pay for any losses and/or damages suffered by Landlord (or reasonably estimated by Landlord that it will suffer) as a result of any breach or
default by Tenant under this Lease; provided, however, that if prior to the LC Expiration Date a voluntary petition is filed by Tenant, or an involuntary petition is filed against Tenant by any of Tenant’s creditors, under the Bankruptcy Code,
then Landlord shall not be obligated to make such payment in the amount of the unused Letter of Credit proceeds until either all preference issues relating to payments under this Lease have been resolved in such bankruptcy or reorganization case or
such bankruptcy or reorganization case has been dismissed. 
  
 21.4 Landlord’s Right to Draw. Tenant hereby acknowledges and agrees that Landlord is entering into this Lease in material reliance upon the ability of Landlord to draw upon the Letter of Credit upon the
occurrence of any breach or default on the part of Tenant under this Lease. If Tenant shall breach any provision of this Lease or otherwise be in default hereunder, Landlord may, but without obligation to do so, and without notice to Tenant, draw
upon the Letter of Credit, in part or in whole, to cure any breach or default of Tenant and/or to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from
Tenant’s breach or default. The use, application or retention of the Letter of Credit, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it
being intended that Landlord shall not first be required to proceed against the Letter of Credit, and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. Tenant agrees not to interfere in any way with
payment to Landlord of the proceeds of the Letter of Credit, either prior to or following a “draw” by Landlord of any portion of the Letter of Credit, regardless of whether any dispute exists between Tenant and Landlord as to
Landlord’s right to draw upon the Letter of Credit. No condition or term of this Lease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing upon such Letter of
Credit in a timely manner. Tenant agrees and acknowledges that (a) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank, (b) Tenant is not a third party beneficiary of such contract, (c) Tenant has no
property interest whatsoever in the Letter of Credit or the proceeds thereof, and (d) in the event Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any
right to restrict or limit Landlord’s claim and/or rights to the Letter of Credit and/or the proceeds thereof by application of Section 502(b)(6) of the U.S. Bankruptcy Code or otherwise. 
  

 -42- 

 21.5 Not a Security Deposit. Landlord and Tenant acknowledge and agree that in no
event or circumstance shall the Letter of Credit or any renewal thereof or any proceeds thereof be (i) deemed to be or treated as a “security deposit” within the meaning of California Civil Code Section 1950.7, (ii) subject to the terms of
such Section 1950.7, or (iii) intended to serve as a “security deposit” within the meaning of such Section 1950.7. The parties hereto (A) recite that the Letter of Credit is not intended to serve as a security deposit and such Section
1950.7 and any and all other laws, rules and regulations applicable to security deposits in the commercial context (“Security Deposit Laws”) shall have no applicability or relevancy thereto and (B) waive any and all rights, duties
and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws. 
  
 21.6 Reduction. Subject to the remaining terms of this Article 21, as of the first day of the twenty-fifth (25th) and thirty-seventh
(37th) full calendar months of the Lease Term (each such date being referred to herein as a “Letter of Credit Reduction Date”), Tenant shall have the right to provide Landlord with a written notice (a “Letter of Credit
Reduction Notice”) advising Landlord that Tenant has satisfied the Benchmark Ratio Requirement (as defined below) for Tenant’s four (4) fiscal quarters immediately preceding such Letter of Credit Reduction Date and requesting that the
Letter of Credit Amount be reduced by an amount equal to $48,375.90 (the “Reduction Amount”), which Letter of Credit Reduction Notice shall be accompanied by a Quarterly Financial Statement (defined below) for each of Tenant’s
four (4) fiscal quarters immediately preceding such Letter of Credit Reduction Date, an Annual Financial Statement (defined below) for Tenant’s fiscal year immediately preceding such Letter of Credit Reduction Date, and any other financial
information or tax returns as may be reasonably requested by Landlord. The Letter of Credit Amount shall be reduced by the Reduction Amount and Tenant shall be entitled to accomplish such reduction by providing Landlord with a certificate of
amendment to the existing Letter of Credit, which amendment reduces the Letter of Credit Amount by the Reduction Amount and in all other aspects meets the requirements for the original Letter of Credit as set forth above, provided that (1) Tenant
has actually satisfied the Benchmark Ratio Requirement for Tenant’s four (4) fiscal quarters immediately preceding such Letter of Credit Reduction Date, (2) Tenant has delivered to Landlord an Annual Financial Statement for Tenant’s fiscal
year in which Tenant last qualified for a reduction in the Letter of Credit, which Annual Financial Statement verifies the accuracy and correctness of the Quarterly Financial Statements pursuant to which Tenant last qualified for a reduction in the
Letter of Credit, (3) Tenant is not in default under this Lease on the date Landlord receives a Letter of Credit Reduction Notice or on the date Tenant tenders to Landlord the certificate of amendment to the existing Letter of Credit, (4) Tenant, at
any time during the Lease Term prior to Landlord’s receipt of such Letter of Credit Reduction Notice or Landlord’s receipt of the certificate of amendment to the existing Letter of Credit, has not been in default under this Lease more
frequently than once in any twelve (12) consecutive month period, (5) in no event shall the Letter of Credit be reduced below an amount equal to $47,880.00, and (6) in no event shall Landlord be required to reduce the Letter of Credit Amount except
as expressly set forth herein. For purposes of this Lease, the “Benchmark Ratio Requirement” shall be satisfied by Tenant for Tenant’s applicable fiscal quarter if the Quarterly Financial Statement for Tenant’s applicable
fiscal quarter, which Quarterly Financial Statement has been provided to Landlord in accordance herewith, reflects that (A) Tenant maintains a Current 
  

 -43- 

 Ratio (defined herein) equal to 2.0:1.0 and (B) Tenant maintains a minimum tangible Total Net Worth (defined herein)
equal to Seven Million Five Hundred Thousand Dollars ($7,500,000.00), with an average cash balance for the previous 12 months equal to two (2) times the previous 12 months’ “burn-rate” (i.e., the rate at which Tenant is
spending its capital while waiting for profitable operation or the amount of money Tenant spends from month to month in order to survive; e.g., a burn-rate of $50,000 would mean Tenant spends $50,000 a month above any incoming cash flow to
sustain its business). For purposes of this Lease, “Current Ratio” shall mean Current Assets (defined herein) divided by Current Liabilities (defined herein); “Current Assets” shall mean all Tenant cash and cash
equivalents, accounts receivable and securities (expressly excluding patents, patent rights, trademarks, trade names, franchises, copyrights, licenses, goodwill or other intangible assets); and “Current Liabilities” shall mean all
Tenant liabilities that should be classified as current in accordance with generally accepted accounting principles consistently applied (“GAAP”). In addition, for purposes of this Lease, “Total Net Worth” shall
mean the difference between (a) the net book value of all Tenant assets (not including patents, patent rights, trademarks, trade names, franchises, copyrights, licenses, goodwill or other intangible assets) after taking all appropriate deductions in
accordance with GAAP (including reserves for obsolescence, depreciation and amortization) minus (b) the Total Liabilities of Tenant; and “Total Liabilities” shall mean the total of all Tenant indebtedness, obligations or liabilities
which, in accordance with GAAP, should be included in determining total liabilities. For purposes of this Lease, the term “Quarterly Financial Statement” shall mean a current, accurate quarterly financial statement for Tenant and
Tenant’s business as of the last day of Tenant’s applicable fiscal quarter, prepared in accordance with GAAP and certified by a reputable, outside certified public accountant. For purposes of this Lease, the term “Annual Financial
Statement” shall mean a current, accurate annual financial statement for Tenant and Tenant’s business as of the last day of Tenant’s immediately preceding fiscal year, prepared in accordance with GAAP and certified by a reputable,
outside certified public accountant, which statement is the same annual financial statement provided to Tenant’s shareholders. 
  
 ARTICLE 22 
  
 SUBSTITUTION OF OTHER PREMISES 
  
 [Intentionally Omitted.] 
  
 ARTICLE 23 
  
 SIGNS 
  
 23.1 Full Floors. Subject to Landlord’s prior written approval, in its reasonable discretion, and provided all signs are
in keeping with the quality, design and style of the Building and Project, Tenant, if the Premises comprise an entire floor of the Building, at its sole cost and expense, may install identification signage anywhere in the Premises including in the
elevator lobby of the Premises, provided that such signs must not be visible from the exterior of the Building. 
  
 23.2 Multi-Tenant Floors. If other tenants occupy space on the floor on which the Premises is located, Tenant’s
identifying signage shall be provided by Landlord, at Landlord’s cost, and such signage shall be comparable to that used by Landlord for other similar floors in the Building and shall comply with Landlord’s then-current Building standard
signage program. 
  

 -44- 

 23.3 Prohibited Signage and Other Items. Any signs, notices, logos, pictures, names
or advertisements which are installed and that have not been separately approved by Landlord may be removed without notice by Landlord at the sole expense of Tenant. Tenant may not install any signs on the exterior or roof of the Project or the
Common Areas. Any signs, window coverings, or blinds (even if the same are located behind the Landlord-approved window coverings for the Building), or other items visible from the exterior of the Premises or Building, shall be subject to the prior
approval of Landlord, in its sole discretion. 
  
 23.4
Building Directory. A building directory will be located in the lobby of the Building, Tenant shall have the right, at Tenant’s sole cost and expense, to designate one (1) Building standard directory listing. 
  
 ARTICLE 24 
  
 COMPLIANCE WITH LAW 
  
 Tenant shall not do anything or suffer anything to be done in or about the
Premises or the Project which will in any way conflict with any law, statute, ordinance or other governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated, including without limitation any
Environmental Laws, as such term is defined in Section 29.33 below (sometimes referred to herein, collectively, as “Applicable Laws”). At its sole cost and expense, Tenant shall promptly comply with all such governmental measures.
Should any standard or regulation now or hereafter be imposed on Landlord or Tenant by a state, federal or local governmental body charged with the establishment, regulation and enforcement of occupational, health or safety standards for employers,
employees, landlords or tenants, then Tenant agrees, at its sole cost and expense, to comply promptly with such standards or regulations. Without limiting the generality of the foregoing, Tenant shall be responsible, at its sole cost and expense, to
make all alterations to the Premises as are required to comply with the governmental rules, regulations, requirements or standards described in this Article 24. Notwithstanding anything to the contrary in this Article 24, Tenant shall not be
responsible to make any structural alterations to the Premises or the Building or to make any alterations outside the Premises required to comply with such governmental measures, except to the extent such compliance obligations result from
Tenant’s particular use of the Premises or from any alterations, additions or improvements to the Premises made by or at the request of Tenant (other than the Tenant Improvements). The judgment of any court of competent jurisdiction or the
admission of Tenant in any judicial action, regardless of whether Landlord is a party thereto, that Tenant has violated any of said governmental measures, shall be conclusive of that fact as between Landlord and Tenant. 
  

 -45- 

 ARTICLE 25  
  
 LATE CHARGES 
  
 If any installment of Rent or any other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) days after
written notice that said amount is due, then Tenant shall pay to Landlord a late charge equal to five percent (5%) of the overdue amount plus any reasonable attorneys’ fees incurred by Landlord by reason of Tenant’s failure to pay Rent
and/or other charges when due hereunder; provided, however, that no late charge shall be imposed with respect to the first payment of Rent that is not received when due in any twelve (12) month period, provided further that such payment is received
by Landlord not more than five (5) days after written notice that the same is due. The late charge shall be deemed Additional Rent and the right to require it shall be in addition to all of Landlord’s other rights and remedies hereunder or at
law and shall not be construed as liquidated damages or as limiting Landlord’s remedies in any manner. In addition to the late charge described above, any Rent or other amounts owing hereunder which are not paid within ten (10) days after the
date they are due shall bear interest from the date when due until paid at a rate per annum equal to the lesser of (i) the annual “Bank Prime Loan” rate cited in the Federal Reserve Statistical Release Publication G.13(415), published on
the first Tuesday of each calendar month (or such other comparable index as Landlord and Tenant shall reasonably agree upon if such rate ceases to be published) plus two (2) percentage points, and (ii) the highest rate permitted by applicable law.

  
 ARTICLE 26 
  
 LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT

  
 26.1 Landlord’s Cure. All
covenants and agreements to be kept or performed by Tenant under this Lease shall be performed by Tenant at Tenant’s sole cost and expense and without any reduction of Rent, except to the extent, if any, otherwise expressly provided herein. If
Tenant shall fail to perform any obligation under this Lease, and such failure shall continue in excess of the time allowed under Section 19.1.2, above, unless a specific time period is otherwise stated in this Lease, Landlord may, but shall not be
obligated to, make any such payment or perform any such act on Tenant’s part without waiving its rights based upon any default of Tenant and without releasing Tenant from any obligations hereunder. 
  
 26.2 Tenant’s Reimbursement. Except as may be
specifically provided to the contrary in this Lease, Tenant shall pay to Landlord, within ten (10) business days following delivery by Landlord to Tenant of statements therefor: (i) sums equal to expenditures reasonably made and obligations incurred
by Landlord in connection with the remedying by Landlord of Tenant’s defaults pursuant to the provisions of Section 26.1; (ii) sums equal to all losses, costs, liabilities, damages and expenses referred to in Article 10 of this Lease; and (iii)
sums equal to all expenditures made and obligations incurred by Landlord in collecting or attempting to collect the Rent or in enforcing or attempting to enforce any rights of Landlord under this Lease or pursuant to law, including, without
limitation, all reasonable legal fees and other amounts so expended. Tenant’s obligations under this Section 26.2 shall survive the expiration or sooner termination of the Lease Term. 
  

 -46- 

 ARTICLE 27 
  
 ENTRY BY LANDLORD 
  
 Landlord reserves the right at all reasonable times and upon reasonable notice to Tenant (except in the case of an emergency) to enter the Premises to (i)
inspect them; (ii) show the Premises to prospective purchasers or, during the last nine (9) months of the Lease Term, to prospective tenants, or to current or prospective mortgagees, ground or underlying lessors or insurers; (iii) post notices of
nonresponsibility; or (iv) alter, improve or repair the Premises or the Building, or for structural alterations, repairs or improvements to the Building or the Building’s systems and equipment. Notwithstanding anything to the contrary contained
in this Article 27, Landlord may enter the Premises at any time to (A) perform services required of Landlord, including janitorial service; (B) take possession due to any breach of this Lease in the manner provided herein and subject to applicable
law; and (C) perform any covenants of Tenant which Tenant fails to perform. Landlord shall use commercially reasonable efforts to minimize, to the extent practicable, disruption to Tenant’s business operations at the Premises resulting from any
such entries. Landlord may make any such entries without the abatement of Rent, except as otherwise provided in this Lease, and may take such reasonable steps as required to accomplish the stated purposes. Tenant hereby waives any claims for damages
or for any injuries or inconvenience to or interference with Tenant’s business, lost profits, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. For each of the above purposes, Landlord shall at all
times have a key with which to unlock all the doors in the Premises, excluding Tenant’s vaults, safes and special security areas designated in advance by Tenant. In an emergency, Landlord shall have the right to use any means that Landlord may
deem proper to open the doors in and to the Premises. Any entry into the Premises by Landlord in the manner hereinbefore described shall not be deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an actual or
constructive eviction of Tenant from any portion of the Premises. No provision of this Lease shall be construed as obligating Landlord to perform any repairs, alterations or decorations except as otherwise expressly agreed to be performed by
Landlord herein. 
  
 ARTICLE 28 
  
 TENANT PARKING 
  
 Landlord shall provide, for the Lease Term, the number of parking spaces as
provided in Section 9 of the Summary, which parking spaces shall be non-exclusive and unreserved. There shall be no charge for parking during the initial Lease Term. Tenant’s continued right to use the parking spaces is conditioned upon (a)
Tenant’s abiding by all reasonable rules and regulations which are prescribed from time to time for the orderly operation and use of the parking facility where the parking spaces are located, including any sticker or other identification system
established by Landlord, and Tenant’s cooperation in seeing that Tenant’s employees and visitors also comply with such rules and regulations, and (b) Tenant’s not being in default under this Lease. Landlord specifically reserves the
right to change the size, configuration, design, layout and all other aspects of the Project parking facility at any time. Tenant acknowledges and agrees that Landlord may, without incurring any liability to Tenant and without any abatement of Rent
under this Lease, from time to time, temporarily close-off or restrict access to the Project parking 
  

 -47- 

 facility for purposes of permitting or facilitating any such construction, alteration or improvements. Landlord may
delegate its responsibilities hereunder to a parking operator in which case such parking operator shall have all the rights of control attributed hereby to the Landlord. The parking spaces available to Tenant pursuant to this Article 28 are provided
to Tenant solely for use by Tenant’s own personnel and such right to such spaces may not be transferred, assigned, subleased or otherwise alienated by Tenant without Landlord’s prior approval, which approval may be withheld in
Landlord’s sole discretion; provided, however, that if Tenant desires to transfer such spaces in connection with an assignment of this Lease or a sublease of all or a portion of the Premises. Landlord shall not unreasonably withhold its
approval. If any assignment or sublease approved by Landlord in accordance with Article 14 above, or an assignment or sublease to an Affiliate in accordance with the provisions of Section 14.8 above, transfers to the assignee or sublessee
thereunder, pursuant to its express terms, a pro rata portion of the parking spaces available to Tenant hereunder, then a separate consent to such transfer shall not be required under this Article 28. 
  
 ARTICLE 29 
  
 MISCELLANEOUS PROVISIONS 
  
 29.1 Terms; Captions. The words
“Landlord” and “Tenant” as used herein shall include the plural as well as the singular. The necessary grammatical changes required to make the provisions hereof apply either to corporations or partnerships or individuals, men or
women, as the case may require, shall in all cases be assumed as though in each case fully expressed. The captions of Articles and Sections are for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of such
Articles and Sections. 
  
 29.2 Binding
Effect. Subject to all other provisions of this Lease, each of the covenants, conditions and provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit not only of Landlord and of Tenant,
but also of their respective heirs, personal representatives, successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of Article 14 of this Lease. 
  
 29.3 No Air Rights. No rights to any view or to
light or air over any property, whether belonging to Landlord or any other person, are granted to Tenant by this Lease. If at any time any windows of the Premises are temporarily darkened or the light or view therefrom is obstructed by reason of any
repairs, improvements, maintenance or cleaning in or about the Project, the same shall be without liability to Landlord and without any reduction or diminution of Tenant’s obligations under this Lease. 
  
 29.4 Modification of Lease. Should any current or
prospective mortgagee or ground lessor for the Building or Project require a modification of this Lease, which modification will not cause an increased cost or expense to Tenant or in any other way materially and adversely change the rights and/or
obligations of Tenant hereunder, or serve to extend the Lease Term, then and in such event, Tenant agrees that this Lease may be so modified and agrees to execute whatever documents are reasonably required therefor and to deliver the same to
Landlord within ten (10) business days following a request therefor. At the request of Landlord or any mortgagee or ground lessor, Tenant agrees to execute a short form of Lease and deliver the same to Landlord within ten (10) business days
following the request therefor. 
  

 -48- 

 29.5 Transfer of Landlord’s Interest. Tenant acknowledges that Landlord has the
right to transfer all or any portion of its interest in the Project or Building and in this Lease, and Tenant agrees that in the event of any such transfer, Landlord shall automatically be released from all liability under this Lease and Tenant
agrees to look solely to such transferee for the performance of Landlord’s obligations hereunder after the date of transfer, and such transferee shall be deemed to have fully assumed and be liable for all obligations of this Lease to be
performed by Landlord, including the return of any Security Deposit, and Tenant shall attorn to such transferee. 
  
 29.6 Prohibition Against Recording. Except as provided in Section 29.4 of this Lease, neither this Lease, nor any memorandum,
affidavit or other writing with respect thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant. 
  
 29.7 Landlord’s Title. Landlord’s title is and always shall be paramount to the title of Tenant. Nothing herein contained
shall empower Tenant to do any act which can, shall or may encumber the title of Landlord. 
  
 29.8 Relationship of Parties. Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent,
partnership, joint venturer or any association between Landlord and Tenant. 
  
 29.9 Application of Payments. Landlord shall have the right to apply payments received from Tenant pursuant to this Lease, regardless of Tenant’s designation of such payments, to satisfy any
obligations of Tenant hereunder, in such order and amounts as Landlord, in its sole discretion, may elect. 
  
 29.10 Time of Essence. Time is of the essence with respect to the performance of every provision of this Lease in which time of
performance is a factor. 
  
 29.11 Partial
Invalidity. If any term, provision or condition contained in this Lease shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, provision or condition to persons or circumstances other
than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this Lease shall be valid and enforceable to the fullest extent possible permitted by law.

  
 29.12 No Warranty. In executing and
delivering this Lease, Tenant has not relied on any representations, including, but not limited to, any representation as to the amount of any item comprising Additional Rent or the amount of the Additional Rent in the aggregate or that Landlord is
furnishing the same services to other tenants, at all, on the same level or on the same basis, or any warranty or any statement of Landlord which is not set forth herein or in one or more of the exhibits attached hereto. 
  
 29.13 Landlord Exculpation. The liability of Landlord or
the Landlord Parties to Tenant for any default by Landlord under this Lease or arising in connection herewith or with 
  

 -49- 

 Landlord’s operation, management, leasing, repair, renovation, alteration or any other matter relating to the
Project or the Premises shall be limited solely and exclusively to an amount which is equal to the lesser of (a) the interest of Landlord in the Building and the rents, issues and profits thereof or (b) the equity interest Landlord would have in the
Building and the rents, issues and profits thereof, if the Building were encumbered by third-party debt in an amount equal to eighty percent (80%) of the value of the Building (as such value is determined by Landlord), provided that in no event
shall such liability extend to any sales or insurance proceeds received by Landlord or the Landlord Parties in connection with the Project, Building or Premises. Neither Landlord, nor any of the Landlord Parties shall have any personal liability
therefor, and Tenant hereby expressly waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. The limitations of liability contained in this Section 29.13 shall inure to the benefit of
Landlord’s and the Landlord Parties’ present and future partners, beneficiaries, officers, directors, trustees, shareholders, agents and employees, and their respective partners, heirs, successors and assigns. Under no circumstances shall
any present or future partner of Landlord (if Landlord is a partnership), or trustee or beneficiary (if Landlord or any partner of Landlord is a trust), have any liability for the performance of Landlord’s obligations under this Lease.
Notwithstanding any contrary provision herein, neither Landlord nor the Landlord Parties shall be liable under any circumstances for injury or damage to, or interference with, Tenant’s business, including but not limited to, loss of profits,
loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use, in each case, however occurring. 
  
 29.14 Entire Agreement. It is understood and acknowledged that there are no oral agreements between the parties hereto affecting this
Lease and this Lease constitutes the parties’ entire agreement with respect to the leasing of the Premises and supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements and understandings, if any, between the
parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease. None of the terms, covenants, conditions or provisions of this Lease can be modified,
deleted or added to except in writing signed by the parties hereto. 
  
 29.15 Right to Lease. Landlord reserves the absolute right to effect such other tenancies in the Project as Landlord in the exercise of its sole business judgment shall determine to best promote the interests of the
Building or Project. Tenant does not rely on the fact, nor does Landlord represent, that any specific tenant or type or number of tenants shall, during the Lease Term, occupy any space in the Building or Project. 
  
 29.16 Force Majeure. Any prevention, delay or stoppage
due to strikes, lockouts, labor disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, acts of terrorism, fire or other casualty, and other causes beyond
the reasonable control of the party obligated to perform, except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant pursuant to this Lease (collectively, a “Force Majeure”),
notwithstanding anything to the contrary contained in this Lease, shall excuse the performance of such party for a period equal to any such prevention, delay or stoppage and, therefore, if this Lease specifies a time period for performance of an
obligation of either party, that time period shall be extended by the period of any delay in such party’s performance caused by a Force Majeure. 
  

 -50- 

 29.17 Waiver of Redemption by Tenant. Tenant hereby waives, for Tenant and for all those
claiming under Tenant, any and all rights now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ. Tenant’s right of occupancy of the Premises after any termination of this Lease. 
  
 29.18 Notices. All notices, demands, statements, designations,
approvals or other communications (collectively, “Notices”) given or required to be given by either party to the other hereunder or by law shall be in writing, shall be (A) sent by United States certified or registered mail, postage
prepaid, return receipt requested (“Mail”), (B) transmitted by telecopy, if such telecopy is promptly followed by a Notice sent by Mail, (C) delivered by a nationally recognized overnight courier, or (D) delivered personally. Any
Notice shall be sent, transmitted, or delivered, as the case may be, (i) to Tenant at the appropriate address set forth in Section 10 of the Summary, or to such other place as Tenant may from time to time designate in a Notice to Landlord, or to the
Premises, and (ii) to Landlord at the addresses set forth below, or to such other places as Landlord may from time to time designate in a Notice to Tenant. Any Notice will be deemed given (i) three (3) days after the date it is posted if sent by
Mail, (ii) the date the telecopy is transmitted, (iii) the date the overnight courier delivery is made, or (iv) the date personal delivery is made. As of the date of this Lease, any Notices to Landlord must be sent, transmitted, or delivered, as the
case may be, to the following addresses: 
  
 Carlyle Realty

 4675 MacArthur Court, Suite 500 
 Newport Beach, California 94660 
 Attention: Paul Brady 
 Telephone: (949) 757-9535 
 Fax: (949)
757-0720 
  
 and 
  
 Opus West Management Corporation 
 6160 Stoneridge Mall Road, Suite 360 
 Pleasanton, California 94588 
 Attention: Marsha Schuette 
 Telephone: (925) 730-3224 
 Fax: (925)
463-9368 
  
 and 
  
 Allen, Matkins, Leck, Gamble & Mallory 
 333 Bush Street, Suite 1700 
 San Francisco,
California 94104 
 Attention: Richard C. Mallory, Esq. 
 Telephone: (415) 837-1515 
 Fax: (415) 837-1516 
  
 29.19 Joint and Several. If there is more than
one Tenant, the obligations imposed upon Tenant under this Lease shall be joint and several. 
  

 -51- 

 29.20 Authority. If Tenant is a corporation, trust or partnership, each
individual executing this Lease on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in California and that Tenant has full right and authority to execute and deliver this Lease
and that each person signing on behalf of Tenant is authorized to do so. In such event, Tenant shall, within ten (10) days after request by Landlord, deliver to Landlord satisfactory evidence of such authority and, if a corporation, upon demand by
Landlord, also deliver to Landlord satisfactory evidence of (i) good standing in Tenant’s state of incorporation and (ii) qualification to do business in California. 
  
 29.21 Attorneys’ Fees. In the event that either Landlord or Tenant should bring suit for
the possession of the Premises, for the recovery of any sum due under this Lease, or because of the breach of any provision of this Lease or for any other relief against the other, then all costs and expenses, including reasonable attorneys’
fees, incurred by the prevailing party therein shall be paid by the other party, which obligation on the part of the other party shall be deemed to have accrued on the date of the commencement of such action and shall be enforceable whether or not
the action is prosecuted to judgment. 
  
 29.22
Governing Law; WAIVER OF TRIAL BY JURY. This Lease shall be construed and enforced in accordance with the laws of the State of California. IN ANY ACTION OR PROCEEDING ARISING HEREFROM, LANDLORD AND TENANT HEREBY CONSENT TO (I) THE
JURISDICTION OF ANY COMPETENT COURT WITHIN THE STATE OF CALIFORNIA, (II) SERVICE OF PROCESS BY ANY MEANS AUTHORIZED BY CALIFORNIA LAW, AND (III) IN THE INTEREST OF SAVING TIME AND EXPENSE, TRIAL WITHOUT A JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR THEIR SUCCESSORS IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE
PREMISES, AND/OR ANY CLAIM FOR INJURY OR DAMAGE, OR ANY EMERGENCY OR STATUTORY REMEDY. IN THE EVENT LANDLORD COMMENCES ANY SUMMARY PROCEEDINGS OR ACTION FOR NONPAYMENT OF BASE RENT OR ADDITIONAL RENT, TENANT SHALL NOT INTERPOSE ANY COUNTERCLAIM OF
ANY NATURE OR DESCRIPTION (UNLESS SUCH COUNTERCLAIM SHALL BE MANDATORY) IN ANY SUCH PROCEEDING OR ACTION, BUT SHALL BE RELEGATED TO AN INDEPENDENT ACTION AT LAW. 
  
 29.23 Submission of Lease. Submission of this instrument for examination or signature by Tenant
does not constitute a reservation of, option for or option to lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord and Tenant. 
  
 29.24 Brokers. Landlord and Tenant hereby warrant to each other that they have had no dealings
with any real estate broker or agent in connection with the negotiation of this Lease, excepting only the real estate brokers or agents specified in Section 12 of the Summary (the “Brokers”), and that they know of no other real
estate broker or agent who is entitled to a commission in connection with this Lease. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities,
lawsuits, judgments, costs and expenses (including without limitation reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be 

  

 -52- 

 
owing on account of any dealings with any real estate broker or agent, other than the Brokers, occurring by, through, or under the indemnifying party.

  
 29.25 Independent
Covenants. This Lease shall be construed as though the covenants herein between Landlord and Tenant are independent and not dependent and Tenant hereby expressly waives the benefit of any statute to the contrary and agrees that if
Landlord fails to perform its obligations set forth herein. Tenant shall not be entitled to make any repairs or perform any acts hereunder at Landlord’s expense or to any setoff of the Rent or other amounts owing hereunder against Landlord.

  
 29.26 Project or Building Name and
Signage. Landlord shall have the right at any time to change the name of the Project or Building and to install, affix and maintain any and all signs on the exterior and on the interior of the Project or Building as Landlord may, in
Landlord’s sole discretion, desire. Tenant shall not use the name of the Project or Building or use pictures or illustrations of the Project or Building in advertising or other publicity or for any purpose other than as the address of the
business to be conducted by Tenant in the Premises, without the prior written consent of Landlord. 
  
 29.27 Counterparts. This Lease may be executed in counterparts with the same effect as if both parties hereto had
executed the same document. Both counterparts shall be construed together and shall constitute a single lease. 
  
 29.28 Confidentiality. Tenant acknowledges that the content of this Lease and any related documents are confidential
information. Tenant shall use best efforts to keep such confidential information strictly confidential and shall not disclose such confidential information to any person or entity other than Tenant’s financial, legal, and space planning
consultants. 
  
 29.29 Development of the
Project. 
  
 29.29.1
Subdivision. Landlord reserves the right to further subdivide all or a portion of the Project. Tenant agrees to execute and deliver, upon demand by Landlord and in the form requested by Landlord, any additional documents needed
to conform this Lease to the circumstances resulting from such subdivision. 
  
 29.29.2 The Other Improvements. If portions of the Project or property adjacent to the Project (collectively, the “Other Improvements”) are owned by an entity other
than Landlord, Landlord, at its option, may enter into an agreement with the owner or owners of any or all of the Other Improvements to provide (i) for reciprocal rights of access and/or use of the Project and the Other Improvements, (ii) for the
common management, operation, maintenance, improvement and/or repair of all or any portion of the Project and the Other Improvements, (iii) for the allocation of a portion of the Direct Expenses to the Other Improvements and the operating expenses
and taxes for the Other Improvements to the Project, and (iv) for the use or improvement of the Other Improvements and/or the Project in connection with the improvement, construction, and/or excavation of the Other Improvements and/or the Project.
Nothing contained herein shall be deemed or construed to limit or otherwise affect Landlord’s right to convey all or any portion of the Project or any other of Landlord’s rights described in this Lease. 
  

 -53- 

 29.29.3 Construction of Project and Other Improvements. Tenant acknowledges
that portions of the Project and/or the Other Improvements may be under construction following Tenant’s occupancy of the Premises, and that such construction may result in levels of noise, dust, obstruction of access, etc. which are in excess
of that present in a fully constructed project. Tenant hereby waives any and all rent offsets (subject to the provisions of Section 6.3 above) or claims of constructive eviction which may arise in connection with such construction. 
  
 29.30 Building Renovations. It is specifically
understood and agreed that Landlord has no obligation and has made no promises to alter, remodel, improve, renovate, repair or decorate the Premises, Building, or any part thereof and that no representations respecting the condition of the Premises
or the Building have been made by Landlord to Tenant except as specifically set forth herein or in the Work Letter. However, Tenant hereby acknowledges that Landlord is currently renovating or may during the Lease Term renovate, improve, alter, or
modify (collectively, the “Renovations”) the Project, the Building and/or the Premises. Landlord shall use commercially reasonable efforts to minimize, to the extent practicable, disruption to Tenant’s business operations at
the Premises resulting from any such Renovations. Notwithstanding the foregoing, Tenant hereby agrees that such Renovations shall in no way constitute a constructive eviction of Tenant nor, except as set forth in Section 6.3 above, entitle Tenant to
any abatement of Rent. Landlord shall have no responsibility and shall not be liable to Tenant for any injury to or interference with Tenant’s business arising from the Renovations, nor shall Tenant be entitled to any compensation or damages
from Landlord for loss of the use of the whole or any part of the Premises or of Tenant’s personal property or improvements resulting from the Renovations, or for any inconvenience or annoyance occasioned by such Renovations. 
  
 29.31 No Violation. Tenant hereby warrants and
represents that neither its execution of nor performance under this Lease shall cause Tenant to be in violation of any agreement, instrument, contract, law, rule or regulation by which Tenant is bound, and Tenant shall protect, defend, indemnify and
hold Landlord harmless against any claims, demands, losses, damages, liabilities, costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, arising from Tenant’s breach of this warranty and representation.

  
 29.32
Communications and Computer Lines. Tenant may install, maintain, replace, remove or use any communications or computer wires and cables (collectively, the “Lines”) at
the Project in or serving the Premises, provided that (i) Tenant shall obtain Landlord’s prior written consent (which consent shall not be unreasonably withheld), use an experienced and qualified contractor approved in writing by Landlord, and
comply with all of the other provisions of Articles 7 and 8 of this Lease, (ii) an acceptable number of spare Lines and space for additional Lines shall be maintained for existing and future occupants of the Project, as determined in Landlord’s
reasonable opinion, (iii) the Lines therefor (including riser cables) shall be appropriately insulated to prevent excessive electromagnetic fields or radiation, and shall be surrounded by a protective conduit reasonably acceptable to Landlord, (iv)
any new or existing Lines servicing the Premises shall comply with all applicable governmental laws and regulations, (v) as a condition to permitting the installation of new Lines, Landlord may require that Tenant remove existing Lines located in or
serving the Premises and repair any damage in connection with such removal, and (vi) Tenant shall pay all costs in connection therewith. Landlord reserves the right to require that Tenant remove any Lines located in or serving the Premises 

  

 -54- 

 
which are installed in violation of these provisions, or which are at any time in violation of any laws or represent a dangerous or potentially dangerous
condition. 
  
 29.33 Hazardous Materials.

  
 29.33.1 Definitions. For
purposes of this Lease, the following definitions shall apply: “Hazardous Material(s)” shall mean any solid, liquid or gaseous substance or material that is described or characterized as a toxic or hazardous substance, waste,
material, pollutant, contaminant or infectious waste, or any matter that in certain specified quantities would be injurious to the public health or welfare, or words of similar import, in any of the “Environmental Laws,” as that term is
defined below, or any other words which are intended to define, list or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity or reproductive toxicity, which Hazardous
Material(s) shall include, without limitation, asbestos, petroleum (including crude oil or any fraction thereof, natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel, or any mixture thereof), petroleum products,
polychlorinated biphenyls, urea formaldehyde, rador gas, nuclear or radioactive matter, medical waste, soot, vapors, fumes, acids, alkalis, chemicals, microbial matters (such as molds, fungi or other bacterial matters), biological agents and
chemicals which may cause adverse health effects, including but not limited to, cancers and/or toxicity. “Environmental Laws” shall mean any and all federal, state, local or quasi-governmental laws (whether under common law, statute
or otherwise), ordinances, decrees, codes, rulings, awards, rules, regulations or guidance or policy documents now or hereafter enacted or promulgated and as amended from time to time, in any way relating to (i) the protection of the environment,
the health and safety of persons (including employees), property or the public welfare from actual or potential release, discharge, escape or emission (whether past or present) of any Hazardous Materials or (ii) the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of any Hazardous Materials. 
  
 29.33.2 Compliance with Environmental Laws. Tenant shall not sell, use, store or dispose of, in or around the Premises,
any Hazardous Materials, except if stored, properly packaged and labeled, disposed of and/or used in accordance with applicable Environmental Laws. In addition, Tenant agrees that it: (i) shall not cause or suffer to occur, the release, discharge,
escape or emission of any Hazardous Materials at, upon, under or within the Premises or any contiguous or adjacent premises; (ii) shall not engage in activities at the Premises that could result in, give rise to, or lead to the imposition of
liability upon Tenant or Landlord or the creation of a lien upon the Building or Project; (iii) shall notify Landlord promptly following receipt of any knowledge with respect to any actual release, discharge, escape or emission (whether past or
present) of any Hazardous Materials at, upon, under or within the Premises; (iv) shall promptly forward to Landlord copies of all orders, notices, permits, applications and other communications and reports in connection with any release, discharge,
escape or emission of any Hazardous Materials at, upon, under or within the Premises or any contiguous or adjacent premises; (v) shall receive Hazardous Materials into and remove Hazardous Materials from the Premises only through such shipping and
receiving areas as are designated by Landlord for such purpose; and (vi) in connection with Tenant’s surrender of the Premises upon the expiration or earlier termination of this Lease, Tenant shall deliver the same free of Hazardous Materials
brought upon, kept or used in or about the Premises by any persons, and, if Tenant utilizes all or any portion of the Premises for Lab Use. Tenant shall obtain and provide to Landlord (A) all 
  

 -55- 

 Hazardous Materials Clearances, (B) evidence from the applicable governmental entities of “closure” of all
permits which had been required for Tenant’s use of the Premises, together with “no further action letters” from such applicable governmental entities and a “no further action letter” for unrestricted future use of the
Premises, and (C) a Phase I report with regard to the Premises (specifically including, but not limited to, the Premises’ ceiling tiles, mechanical duct work, air-filters and all related Building systems, as well as the soils and groundwater
under and about the Premises). Such Phase I report shall be (x) performed by an environmental assessment or engineering firm and on a scope of work acceptable to Landlord in its sole discretion, (y) shall identify Landlord as a beneficiary of such
report, and (z) completed no earlier than six (6) months prior to the expiration of this Lease and no later than the Lease Expiration Date; provided, however, in the event this Lease is terminated early for any reason, Tenant shall complete such
Phase I report within a commercially reasonable time immediately following such early termination of this Lease. Such Phase I report shall either (1) indicate that the property shows no evidence of reasonably possible hazardous materials
contamination of the building, soil or groundwater; or (2) recommend further investigation of the site, in which event, if such further investigation relates to Tenant’s or the Tenant Parties’ use of the Premises, then it shall be
performed by an environmental assessment or engineering firm and on a scope of work acceptable to Landlord in its sole discretion and at the Tenant’s sole expense. Such additional investigation, if any, shall be completed within sixty (60) days
of such recommendation. 
  
 29.33.3 List of
Documents and Operations. If Tenant utilizes all or any portion of the Premises for Lab Use, then as a material inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its business, Tenant agrees to
deliver to Landlord, prior to the Lease Commencement Date, a list identifying each type of Hazardous Materials to be present on the Premises and setting forth any and all governmental approvals or permits required in connection with the presence of
such Hazardous Materials on the Premises (the “Hazardous Materials List”). Tenant shall deliver to Landlord an updated Hazardous Materials List at least once a year and shall also deliver an updated list before any new Hazardous
Material(s) is brought onto the Premises. Tenant shall deliver to Landlord true and correct copies of the following documents (the “Haz Mat Documents”) related to the handling, use, storage, disposal and emission of Hazardous
Materials prior to the Lease Commencement Date, or if unavailable at that time, concurrent with the receipt from, or submission to, a governmental agency; permits; approvals; reports and correspondences; storage and manufacturing plans; notice of
violations of any laws; plans relating to the installation of any storage tanks to be installed in or under the Project (provided, said installation of tanks shall only be permitted after Landlord has given Tenant its written consent to do so, which
consent may be withheld in Landlord’s sole and absolute discretion); and all closure plans or any other documents required by any and all federal, state, and local governmental agencies and authorities for any storage tanks installed in, on or
under the Project for the closure of any such tanks. Tenant is not required, however, to provide Landlord with any portion(s) of the Haz Mat Documents containing information of a proprietary nature which, in and of themselves, do not contain a
reference to any Hazardous Materials or hazardous activities. It is not the intent of this Section 29.33.3 to provide Landlord with information which could be detrimental to Tenant’s business should such information become possessed by
Tenant’s competitors. In connection with the foregoing, Tenant hereby represents and warrants to Landlord that neither Tenant, nor any of its legal predecessors, has been required by any prior landlord, lender or governmental authority at any
time to take remedial action in connection with Hazardous Materials contaminating a property which contamination was 
  

 -56- 

 permitted by Tenant or resulting from Tenant’s action or use of the property in question, and Tenant is not subject
to any enforcement order issued by any governmental authority in connection with the use, disposal or storage of any Hazardous Materials. If Landlord determines that this representation and warranty was not true as of the date of this Lease,
Landlord shall have the right to terminate this Lease in Landlord’s sole and absolute discretion. 
  
 29.33.4 Landlord’s Right of Environmental Audit. If Tenant utilizes all or any portion of the Premises for Lab
Use, then Landlord may, upon reasonable notice to Tenant, be granted access to and enter the Premises (but no more than once annually) to perform or cause to have performed an environmental inspection, site assessment or audit. Such environmental
inspector or auditor may be chosen by Landlord, in its sole discretion, and be performed at Landlord’s sole expense. To the extent that the report prepared upon such inspection, assessment or audit, indicates the presence of Hazardous Materials
in violation of Environmental Laws, or provides recommendations or suggestions to prohibit the release, discharge, escape or emission of any Hazardous Materials at, upon, under or within the Premises, or to comply with any Environmental Laws. Tenant
shall promptly, at Tenant’s sole expense, comply with such recommendations or suggestions, including, but not limited to performing such additional investigative or subsurface investigations or remediation(s) as recommended by such inspector or
auditor (taking into account all legal requirements and applicable governmental agency recommendations). Notwithstanding the above, if at any time, Landlord has actual notice or reasonable cause to believe that Tenant has violated, or permitted any
violations of any Environmental Law, then Landlord will be entitled to perform its environmental inspection, assessment or audit at any time, notwithstanding the above mentioned annual limitation, and Tenant must reimburse Landlord for all costs and
fees incurred for such as Additional Rent. 
  
 29.33.5 Indemnification. Tenant agrees to indemnify, defend, protect and hold harmless Landlord and the Landlord Parties from and against any liability, obligation, damage or costs, including without limitation,
attorneys’ fees and costs, resulting directly or indirectly from any use, presence, removal or disposal of any Hazardous Materials or breach of any provision of this Section 29.33, to the extent such liability, obligation, damage or costs was a
result of actions caused or permitted by Tenant or a Tenant Party. The foregoing environmental indemnity shall survive any expiration or termination of this Lease, and shall not be affected by any claims of breach of any other provisions of this
Lease. 
  
 29.33.6 Ongoing
Obligations. All obligations of Tenant hereunder not fully performed as of the termination of the Lease Term, including the obligations of Tenant pursuant to this Section 29.33, shall survive the expiration or earlier termination of
the Lease, and, at Landlord’s option in Landlord’s sole discretion, shall constitute a holding over by Tenant in the Premises. 
  
 29.33.7 Limitation on Use of Hazardous Materials to Lab Premises. Notwithstanding anything contained in this Section 29.33, if
Tenant utilizes all or any portion of the Premises for Lab Use, in no event shall Tenant have the right to sell, use, store or dispose of any Hazardous Materials in any portion of the Premises other than the Lab Premises; provided, however, that
Tenant may use in other portions of the Premises small quantities of such substances as are customarily used in connection with general office use, provided that such use is in compliance with all Environmental Laws. 
  

 -57- 

 29.34 No Discrimination. There shall be no discrimination against, or segregation
of, any person or persons on account of sex, marital status, race, color, religion, creed, national origin or ancestry in the Transfer of the Premises, or any portion thereof, nor shall the Tenant itself, or any person claiming under or through it,
establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Premises, or any portion thereof.

  
 ARTICLE 30 
  
 EXISTING ENVIRONMENTAL CONDITION 
  
 Pursuant to California Health & Safety Code Section 25359.7 and other
relevant sections of law requiring notice, Landlord hereby notifies Tenant that the land and/or groundwater under the Project contains measurable levels of certain hazardous materials as described in the environmental report (the “Environmental
Report”) listed on Exhibit G attached hereto and incorporated herein (the “Existing Environmental Condition”). Upon the request of Tenant, Landlord shall make available any and all reports concerning the Existing
Environmental Condition for Tenant’s review, including the Environmental Report. 
  
 IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be executed as of the date first above written. 
  

					
	 
	
	 GAINEY ONE TRUST,
 a Maryland real estate investment trust

		
	 By:
	 	 /s/ Cary E. Block

	 	 	 Name:
	 	 Cary E. Block

	 	 	 Its:
	 	 Vice President

	
	 “Tenant”:

	
	 COTHERIX, INC.,

	 a Delaware corporation

		
	 By:
	 	 /s/ Donald J. Santel

	 	 	 Name:
	 	 Donald J. Santel

	 	 	 Its:
	 	 President

		
	 By:
	 	  

	 	 	 Name:
	 	  

	 	 	 Its:
	 	  

  

 -58- 

 EXHIBIT A 
  
 OUTLINE OF PREMISES 
  
 [GRAPHIC APPEARS HERE] 
  

 EXHIBIT A 
 -1- 

 EXHIBIT B 
  
 WORK LETTER 
  
 This Work Letter shall set forth the terms and conditions relating to the construction of the Tenant Improvements (as defined below) in the Premises. This
Work Letter is essentially organized chronologically and addresses the issues of the construction of the Premises, in sequence, as such issues will arise during the actual construction of the Premises. All references in this Work Letter to Articles
or Sections of “this Lease” shall mean the relevant portion of Articles 1 through 30 of the Office Lease to which this Work Letter is attached as Exhibit B and of which this Work Letter forms a part, and all references in
this Work Letter to Sections of “this Work Letter” shall mean the relevant portion of Sections 1 through 6 of this Work Letter. 
  
 SECTION 1 
  
 CONSTRUCTION DRAWINGS FOR THE PREMISES 
  
 Landlord shall construct the improvements in the Premises (the “Tenant Improvements”) pursuant to that certain Space Plan prepared by
                    , dated
                     and bearing Job No.
                     [NEED TO PROVIDE INFORMATION] (the “Space Plan”). Within two (2) business days following request by
Landlord or Landlord’s architect or engineers, Tenant shall supply Landlord and Landlord’s architect and engineers with all of the information necessary to enable Landlord’s architect and engineers to complete the architectural and
engineering drawings for the Premises and the final architectural working drawings in a form which conforms to all applicable laws and is complete to allow subcontractors to bid on the work and to obtain all applicable permits. The architectural and
engineering drawings for the Premises and the final architectural working drawings shall be consistent with, and a logical extension of, the Space Plan. Upon completion of the final architectural working drawings, Landlord shall submit the same to
Tenant for review and approval. Tenant shall have three (3) business days following Tenant’s receipt of the final architectural working drawings to review and approve the same; provided, however, that in no event shall Tenant have the right to
withhold approval of the final architectural working drawings so long as the same are consistent with, and a logical extension of, the Space Plan. Failure of Tenant to notify Landlord of Tenant’s approval or disapproval of the final
architectural working drawings within such three (3) business day period shall be deemed Tenant’s approval thereof. If Tenant timely disapproves the final architectural working drawings, such disapproval shall be accompanied by a written
itemization in reasonable detail setting forth the specific portions of the final architectural working drawings that Tenant purports are not consistent with, and a logical extension of, the Space Plan. The final architectural working drawings as
approved (or deemed approved) by Tenant are referred to herein as the “Approved Working Drawings.”] To the maximum extent possible, the Tenant Improvements shall utilize the improvements existing in the Premises as of the date of the
Lease. In no event shall the Tenant Improvements include any furniture (including, without limitation, workstations), fixtures, equipment, data or telecommunications equipment or cabling, or artwork. Tenant shall make no changes, modifications or
substitutions to the Space Plan, the Approved Working Drawings or the Tenant Improvements (including, without limitation, any request by Tenant for incorporation in the Tenant Improvements of any materials or finishes which are not 
  

 EXHIBIT B 
 -1- 

 Building standard or which are not otherwise expressly set forth in the Space Plan or the Approved Working Drawings, or
any request by Tenant that improvements be incorporated into the Approved Working Drawings which are not consistent with and a logical extension of the Space Plan as reasonably determined by Landlord) (collectively, “Changes”) without the
prior written consent of Landlord, which consent may be granted or withheld in Landlord’s sole and absolute discretion. 
  
 SECTION 2 
  
 OVER-ALLOWANCE AMOUNT 
  
 Landlord has allocated an amount (the “Tenant Improvement Allowance”) not to exceed $282,900.00 (i.e. $20.00 per rentable square foot of the Premises times 14,145 rentable square feet) for the costs related
to the design and construction of the Tenant Improvements. In the event that, at any time, Landlord reasonably anticipates that the total cost of the design and construction of the Tenant Improvements and all costs incurred in connection therewith,
will exceed the Tenant Improvement Allowance, then the amount of such excess (the “Over-Allowance Amount”) shall be paid by Tenant to Landlord within five (5) days following Landlord’s request (“Landlord’s Over-Allowance
Payment Request”). Further, in the event that after Tenant’s execution of this Lease, any Changes shall be made by, for or at the request of Tenant to the Space Plan, the Approved Working Drawings or the Tenant Improvements, any additional
costs which arise in connection with such Changes shall be paid by Tenant to Landlord as an addition to the Over-Allowance Amount within five (5) days following Landlord’s request. The Over-Allowance Amount shall be disbursed by Landlord prior
to the disbursement of any then remaining portion of Landlord’s contribution to the construction of the Tenant Improvements. 
  
 SECTION 3 
  
 AMORTIZED ALLOWANCE 
  
 Provided that Tenant is not then in default under the Lease or this Work Letter, Tenant shall have the right to elect to use an allowance from Landlord (the “Amortized Allowance”) solely for purposes of
paying the Over-Allowance Amount, which Amortized Allowance shall not exceed the lesser of (i) $70,725.00 (i.e., $5.00 per rentable square foot of the Premises times 14,145 rentable square feet), or (ii) the total amount of the Over-Allowance
Amount. Tenant shall make such election to use the Amortized Allowance, if at all, by written notice delivered to Landlord within five (5) days following the date of Landlord’s Over-Allowance Payment Request, which notice shall set forth the
amount of the Amortized Allowance which Tenant is electing to use. In the event that Tenant timely elects to use the Amortized Allowance, then the Amortized Allowance shall be disbursed by Landlord (pursuant to Landlord’s disbursement process)
following disbursement by Landlord of the Tenant Improvement Allowance. If Tenant does not timely elect to use the Amortized Allowance, then the Amortized Allowance shall accrue to the sole benefit of Landlord, it being understood that Tenant shall
not be entitled to any credit, abatement or other concession in connection therewith. Tenant shall be responsible for all applicable state sales or use taxes, if any, payable in connection with the Amortized Allowance. In the event that Tenant
timely elects to use the Amortized Allowance in accordance with this 
  

 EXHIBIT B 
 -2- 

 Section 3, the monthly Base Rent for the Premises for the initial Lease Term shall be increased by an amount equal
to the Additional Monthly Base Rent (as defined below) in order to repay the Amortized Allowance to Landlord. The Additional Monthly Base Rent shall be payable monthly in advance, without notice or demand, and as additional Rent under the Lease, on
or before the first day of each calendar month during the initial Lease Term, commencing as of the first day of the first full calendar month of the initial Lease Term and continuing through the first day of the last full calendar month of the
initial Lease Term. The “Additional Monthly Base Rent” shall be determined as the missing component of an annuity, which annuity shall have (i) the amount of the Amortized Allowance which Tenant has elected to use as the present value
amount, (ii) the number of full calendar months in the initial Lease Term as the number of payments, (iii) 0.67%, which is equal to 8% divided by twelve (12) months per year, as the monthly interest factor, and (iv) the Additional Monthly
Base Rent as the missing component of the annuity. Upon Tenant’s election to use the Amortized Allowance, the provisions of this Section 3 regarding the Additional Monthly Base Rent shall be self-operative; provided, however, Tenant
hereby agrees, at Landlord’s request, to execute an amendment to the Lease setting forth the amount of the Additional Monthly Base Rent as computed in accordance herewith, and Tenant hereby acknowledges and agrees that Landlord may condition
payment of the Amortized Allowance upon Tenant’s execution of such an amendment to the Lease. 
  
 SECTION 4 
  
 CONTRACTOR’S WARRANTIES AND GUARANTIES 
  
 Landlord hereby assigns to Tenant all warranties and guaranties by the contractor who constructs the Tenant Improvements (the “Contractor”) relating to the Tenant Improvements, and Tenant hereby waives all claims against Landlord
relating to, or arising out of the design and/or construction of, the Tenant Improvements. 
  
 SECTION 5 
  
 COMPLETION
OF THE TENANT IMPROVEMENTS; 
 LEASE COMMENCEMENT DATE 
  
 5.1 Ready for Occupancy. The Premises shall be deemed “Ready for Occupancy” upon the Substantial Completion
of the Premises. For purposes of this Lease, “Substantial Completion” of the Premises shall occur upon the completion of construction of the Tenant Improvements in the Premises pursuant to the Approved Working Drawings, with the exception
of any punch list items and any tenant fixtures, telephones and computers and any cabling related thereto, photocopy machines, work-stations, built-in furniture, or equipment to be installed by Tenant or under the supervision of Contractor, the
purchase and installation of which shall be Tenant’s sole responsibility. 
  
 5.2 Delay of the Substantial Completion of the Premises. Except as provided in this Section 5.2, the Lease Commencement Date shall occur as set forth in Article 2 of the Lease and Section
5.1, above. If there shall be a delay or there are delays in the Substantial Completion of the Premises or in the occurrence of any of the other conditions precedent to the Lease 

  

 EXHIBIT B 
 -3- 

 
Commencement Date, as set forth in Article 2 of the Lease, as a direct, indirect, partial, or total result of: 
  
 5.2.1 Tenant’s failure to timely approve any matter requiring
Tenant’s approval or to timely pay any amount required to be paid by Tenant pursuant to this Work Letter; 
  
 5.2.2 A breach by Tenant of the terms of this Work Letter or the Lease; 
  
 5.2.3 Tenant’s request for Changes; 
  
 5.2.4 Changes in any of the Approved Working Drawings because the same do not comply with applicable laws; 
  
 5.2.5 Tenant’s requirement for materials, components, finishes or
improvements which are not available in a commercially reasonable time given the Anticipated Commencement Date, as set forth in the Lease, or which are different from, or not included in, Landlord’s standard improvement package items for the
Building; 
  
 5.2.6 Changes to the base, shell and core work of
the Building required by the Approved Working Drawings; or 
  
 5.2.7 Any other acts or omissions of Tenant, or its agents, or employees; 
  
 then, notwithstanding anything to the contrary set forth in the Lease or this Work Letter and regardless of the actual date of the Substantial Completion of the Premises, the Lease Commencement Date shall be deemed to be the date the Lease
Commencement Date would have occurred if no Tenant delay or delays, as set forth above, had occurred. 
  
 SECTION 6 
  
 MISCELLANEOUS 
  
 6.1 Tenant’s Entry Into
the Premises Prior to Substantial Completion. Provided that Tenant and its agents do not interfere with Contractor’s work in the Building and the Premises, Contractor shall allow Tenant access to the Premises prior to the Substantial
Completion of the Premises for the purpose of Tenant’s installation of furniture, fixtures and equipment (including Tenant’s data and telephone equipment) in the Premises. Prior to Tenant’s entry into the Premises as permitted by the
terms of this Section 6.1, Tenant shall submit a schedule to Landlord and Contractor, for their approval, which schedule shall detail the timing and purpose of Tenant’s entry. Tenant shall hold Landlord harmless from and indemnify,
protect and defend Landlord against any loss or damage to the Building or Premises and against injury to any persons caused by Tenant’s actions pursuant to this Section 6.1. 
  
 6.2 Tenant’s Representative. Tenant has designated
                                        
[TENANT TO PROVIDE] as its sole representative with respect to the matters set forth in this Work Letter, who, until further notice to Landlord, shall have full authority and responsibility to act on behalf of the Tenant as required in this
Work Letter. 
  

 EXHIBIT B 
 -4- 

 6.3 Landlord’s Representative. Landlord has designated Josh Roden of Opus West Construction
as its sole representative with respect to the matters set forth in this Work Letter, who, until further notice to Tenant, shall have full authority and responsibility to act on behalf of the Landlord as required in this Work Letter. 
  
 6.4 Tenant’s Agents. All contractors, subcontractors, laborers,
materialmen, and suppliers retained by or through Tenant shall be union labor in compliance with all then existing master labor agreements. 
  
 6.5 Time of the Essence in This Work Letter. Unless otherwise indicated, all references herein to a “number of days” shall mean and refer
to calendar days. In all instances where Tenant is required to approve or deliver an item, if no written notice of approval is given or the item is not delivered within the stated time period, at Landlord’s sole option, at the end of such
period the item shall automatically be deemed approved or delivered by Tenant and the next succeeding time period shall commence. 
  
 6.6 Tenant’s Lease Default. Notwithstanding any provision to the contrary contained in this Lease, if an event of default as described in
Article 19 of the Lease, or a default by Tenant under this Work Letter, has occurred at any time on or before the Substantial Completion of the Premises, then (i) in addition to all other rights and remedies granted to Landlord pursuant to the
Lease, Landlord shall have the right to cause Contractor to cease the construction of the Premises (in which case, Tenant shall be responsible for any delay in the Substantial Completion of the Premises caused by such work stoppage as set forth in
Section 5 of this Work Letter), and (ii) all other obligations of Landlord under the terms of this Work Letter shall be forgiven until such time as such default is cured pursuant to the terms of the Lease. 
  

 EXHIBIT B 
 -5- 

 EXHIBIT C 
  
 NOTICE OF LEASE TERM DATES 
  

			
	 To:
	  	  

	 	  	  

	 	  	  

	 	  	  

  

	 	Re:	Office Lease dated
                                        ,
between GAINEY ONE TRUST, a Maryland real estate investment trust (“Landlord”), and                     , a
                     (“Tenant”), concerning Suite              on
the              (            ) floor of the office building located at 5000 Shoreline Court, South San Francisco,
California. 

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

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

  

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

  

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

  

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

  

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

  

 EXHIBIT C 
 -1- 

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

  

					
	 “Landlord”:

	
	 GAINEY ONE TRUST,

	 a Maryland real estate investment trust

		
	 By:
	 	  

	 	 	 Its:
	 	  

  

			
	 Agreed to and Accepted as of
                       .
	 	 
	
	 “Tenant”:

	  

	 	,

					
	 a
	 	  

  

					
	 By:
	 	  

	 	 	 Its:
	 	  

		
	 By:
	 	  

	 	 	 Its:
	 	  

  

 EXHIBIT C 
 -2- 

 EXHIBIT D 
  
 RULES AND REGULATIONS 
  

The following Rules and Regulations (“Building Rules”) apply to and govern Tenant’s use of the Premises and Project. Capitalized terms
have the meanings given in the Lease, of which these Building Rules are a part. Tenant is responsible for all loss, cost, damage, expense and liability (including, without limitation, court costs and reasonable attorneys’ fees) (collectively,
“Claims”) arising from any violation of the Building Rules by Tenant. 
  
 1. No awning or other projection may be attached to the outside walls of the Premises or Project. No curtains, blinds, shades or screens visible from the exterior of the Premises may be attached to or hung in, or used
in connection with, any window or door of the Premises without the prior written consent of Landlord. Such curtains, blinds, shades, screens or other fixtures must be of a quality, type, design and color, and attached in a manner, approved by
Landlord in writing. 
  
 2. No sign, lettering, picture, notice or
advertisement which is visible from the exterior of the Premises or the Building may be installed on or in the Premises without Landlord’s prior written consent, and then only in such manner, character and style as Landlord may have approved in
writing. 
  
 3. Tenant will not obstruct sidewalks, entrances,
passages, corridors, vestibules, halls, or stairways in and about the Project which are used in common with other tenants. Tenant will not place objects against glass partitions or doors or windows which would be unsightly from any of the corridors
of the Building or from the exterior of the Building and will promptly remove any such objects upon notice from Landlord. 
  
 4. Tenant will not create or allow obnoxious or harmful fumes, odors, smoke or other discharges which may be offensive to the other occupants of the
Project or neighboring properties, or otherwise create any nuisance. 
  
 5. The Premises shall not be used for cooking (as opposed to heating of food), lodging, sleeping or for any immoral or illegal purpose. 
  
 6. Tenant will not make excessive noises, cause disturbances or vibrations or use or operate any electrical or mechanical devices or other equipment that
emit excessive sound or other waves or disturbances or which may be offensive to the other occupants of the Project, or that may unreasonably interfere with the operation of any device, equipment, computer, video, radio, television broadcasting or
reception from or within the Project or elsewhere. 
  
 7. Machines
and mechanical equipment belonging to Tenant, which cause noise or vibration that may be transmitted to the structure of the Building or to any space therein to such a degree as to be objectionable to Landlord or to any tenants in the Building,
shall be placed and maintained by Tenant, at Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate noise or vibration. 
  

 EXHIBIT D 
 -1- 

 8. No dog or other animal or bird is allowed in the Project, except for animals assisting the disabled.

  
 9. Tenant will not waste electricity, water or air
conditioning and will cooperate with Landlord to ensure the most effective operation of the Building’s heating, air conditioning, ventilation and utility systems. Tenant will not use any method of heating or air conditioning (including without
limitation fans or space heaters) other than that supplied by Landlord or approved in writing. 
  
 10. Tenant assumes full responsibility for protecting its space from theft, robbery and pilferage, which includes keeping valuable items locked up and doors locked and other means of entry to the Premises closed and
secured after Building Hours and at other times the Premises is not in use. 
  
 11. No additional locks or similar devices shall be attached to any door or window and no keys other than those provided by Landlord shall be made for any door. If more than two keys for one lock are desired by the
Tenant, Landlord will provide the same upon payment by the Tenant of Landlord’s standard charge therefor. Upon termination of this Lease or of Tenant’s possession, Tenant will surrender all keys of the Premises and shall explain to
Landlord all combination locks on safes, cabinets and vaults. 
  
 12. Tenant will not bring into the Project inflammables, such as gasoline, kerosene, naphtha and benzine, or explosives or any other article of intrinsically dangerous nature. 
  
 13. Tenant shall not bring any bicycles or other vehicles of any kind into the Building, except for appropriate vehicles
necessary for assisting the disabled. 
  
 14. If any carpeting or
other flooring is installed by Tenant using an adhesive, such adhesive will be an odorless, releasable adhesive. 
  
 15. If Tenant requires telegraphic, telephonic, or security alarm services, Tenant shall first obtain Landlord’s written approval, and comply with
Landlord’s instructions in their installation. 
  
 16. The
water and wash closets, drinking fountains and other plumbing fixtures will not be used for any purpose other than those for which they were constructed, and no sweepings, rubbish, rags, coffee grounds or other substances shall be thrown therein.

  
 17. Tenant will not overload any utilities serving the
Premises. 
  
 18. All loading, unloading, receiving or delivery of
goods, supplies, furniture or other items will be made only through entryways provided for such purposes. Deliveries during normal office hours shall be limited to normal office supplies and other small items. No deliveries shall be made which
impede or interfere with other tenants or the operation of the Building. No equipment, materials, furniture, packages, supplies, merchandise or other property will be received in the Building or carried in the passenger elevators except between such
hours and in such elevators as may be designated by Landlord. 
  

 EXHIBIT D 
 -2- 

 19. Tenant’s initial move in and subsequent deliveries of heavy or bulky items, such as furniture,
safes and similar items shall be made only outside of Building Hours and only in such manner as shall be prescribed in writing by Landlord. Landlord will in all cases have the right to specify the proper position of any safe, equipment or other
heavy article, which shall only be used by Tenant in a manner which will not interfere with or cause damage to the Premise or the Project, or to the other tenants or occupants of the Project. Tenant will not overload the floors or structure of the
Building. 
  
 20. Tenant will be responsible for all Claims
arising from any damage to the Project or the property of its employees or others and any injuries sustained by any person whomsoever resulting from the delivery or moving of any articles by or for Tenant. 
  
 21. Canvassing, soliciting, and peddling in or about the Project is
prohibited and Tenant will cooperate to prevent the same. 
  
 22.
At all times (a) persons may enter the Building only in accordance with such regulations as Landlord may provide, (b) persons entering or departing from the Building may be questioned as to their business in the Building, and the right is reserved
to require the use of an identification card or other access device or procedures and/or the registering of such persons as to the hour of entry and departure, nature of visit, and other information deemed necessary for the protection of the
Building, and (c) all entries into and departures from the Building shall be through one or more entrances as Landlord shall from time to time designate. Landlord may elect not to enforce clauses (a), (b) and (c) above during Building Hours, but
reserves the right to do so at Landlord’s discretion. 
  
 23.
In case of invasion, mob, riot, public excitement, or other commotion, Landlord reserves the right to limit or prevent access to the Building and/or the Project during the continuance of the same by closing the doors or taking other appropriate
steps. Landlord will in no case be liable for damages for any error or other action taken with regard to the admission to or exclusion from the Building and/or the Project of any person at any time. 
  
 24. Smoking is not permitted, except in the smoking areas located outside of
the Building, if any, as designated and redesignated in writing from time to time by Landlord, in its sole, absolute and arbitrary discretion, and Tenant will not smoke anywhere within the Project including, without limitation, the Premises and the
sidewalks, entrances, passages, corridors, halls, elevators and stairways of the Project, other than the smoking areas, if any, designated in writing by Landlord. All smoking materials must be disposed of in ashtrays or other appropriate receptacles
provided for that purpose. 
  
 25. The Building directory will be
provided exclusively for the display of the name and location of tenants only and Landlord reserves the right to exclude any other names therefrom and to limit the amount of space thereon dedicated to Tenant. 
  
 26. Unless otherwise approved by Landlord in writing, all janitorial services
for the Project and the Premises shall be provided exclusively through Landlord, and except with the written consent of Landlord, no person or persons other than those approved by Landlord shall be employed by Tenant or permitted to enter the
Project for the purpose of performing janitorial 

  

 EXHIBIT D 
 -3- 

 
services. Tenant shall not cause any unnecessary labor by carelessness or indifference to the good order and cleanliness of the Project. 
  
 27. Landlord reserves the right to exclude or expel from the Project any
person who, in Landlord’s judgment, is intoxicated or under the influence of liquor or drugs or who is in violation of any of the Building Rules or any laws. 
  
 28. Tenant shall store all its trash and garbage in proper receptacles within its Premises or in other facilities provided
for such purpose by Landlord. Tenant shall not place in any trash box or receptacle any material which cannot be disposed of in the ordinary and customary manner of trash and garbage disposal. All garbage and refuse disposal shall be made in
accordance with directions issued from time to time by Landlord. Tenant will cooperate with any recycling program at the Project. 
  
 29. Tenant will not use in the Premises or Common Areas any hand truck except those equipped with rubber tires and side guards or such other
material-handling equipment as Landlord may approve. 
  
 30.
Tenant will not use the name of the Building or the Project in connection with or in promoting or advertising the business of Tenant except as Tenant’s address. 
  
 31. Tenant will comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or
any governmental agency. 
  
 32. Tenant’s requirements will
be attended to only upon appropriate application to Landlord’s property management office for the Project by an authorized individual. 
  
 33. Tenant will not park or permit parking in any areas designated by Landlord for parking by visitors to the Project or for the exclusive use of
particular tenants or other occupants of the Project. Only passenger vehicles may be parked in the parking areas. 
  
 34. Parking stickers or any other device or form of identification supplied by Landlord as a condition of use of the parking facilities shall remain the
property of Landlord. Such parking identification device must be displayed as requested and may not be mutilated or obstructed in any manner. Such devices are not transferable and any device in the possession of an unauthorized holder will be void.
Landlord may charge a fee for parking stickers, cards or other parking control devices supplied by Landlord. 
  
 35. No overnight or extended term parking or storage of vehicles is permitted. 
  
 36. Parking is prohibited (a) in areas not striped for parking; (b) in aisles; (c) where “no parking” signs are
posted; (d) on ramps; (e) in cross-hatched areas; (f) in loading areas; and (g) in such other areas as may be designated by Landlord. 
  
 37. All responsibility for damage, loss or theft to vehicles and the contents thereof is assumed by the person parking the vehicle. 
  

 EXHIBIT D 
 -4- 

 38. Tenant and/or each user of the parking area may be required to sign a parking agreement, as a
condition to parking, which agreement may provide for the manner of payment of any parking charges and other matters not inconsistent with this Lease and these Building Rules. 
  
 39. Landlord reserves the right to refuse parking identification devices and parking rights to Tenant or any other person
who fails to comply with the Building Rules applicable to the parking areas. Any violation of such rule shall subject the vehicle to removal, at such person’s expense. 
  
 40. A third party may own, operate or control the parking areas, and such party may enforce these Building Rules relating to
parking. Tenant will obey any additional rules and regulations governing parking which may be imposed by the parking operator or any other person controlling the parking areas serving the Project. 
  
 41. Tenant shall comply with any non-smoking ordinance adopted by any
applicable governmental authority. 
  
 42. Tenant hereby
acknowledges that Landlord shall have no obligation to provide guard service or other security measures for the benefit of the Premises, the Building or the Project. Tenant hereby assumes all responsibility for the protection of Tenant and its
agents, employees, contractors, invitees and guests, and the property thereof, from acts of third parties, including keeping doors locked and other means of entry to the Premises closed, whether or not Landlord, at its option, elects to provide
security protection for the Project or any portion thereof. Tenant further assumes the risk that any safety and security devices, services and programs which Landlord elects, in its sole discretion, to provide may not be effective, or may
malfunction or be circumvented by an unauthorized third party, and Tenant shall, in addition to its other insurance obligations under this Lease, obtain its own insurance coverage to the extent Tenant desires protection against losses related to
such occurrences. Tenant shall cooperate in any reasonable safety or security program developed by Landlord or required by law. 
  
 43. Tenant shall be responsible for the observance of all of the Building Rules by Tenant (including, without limitation, all employees, agents, clients,
customers, invitees and guests). 
  
 44. Landlord may, from time
to time, waive any one or more of these Building Rules for the benefit of Tenant or any other tenant, but no such waiver by Landlord shall be construed as a continuing waiver of such Building Rule(s) in favor of Tenant or any other tenant, nor
prevent Landlord from thereafter enforcing any such Building Rule(s) against Tenant or any or all of the tenants of the Project. 
  
 45. These Building Rules are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the other terms, covenants,
agreements and conditions of the Lease. In the event of any conflict between these Building Rules and any express term or provision otherwise set forth in the Lease, such other express term or provision shall be controlling. 
  

 EXHIBIT D 
 -5- 

 EXHIBIT E 
  
 FORM OF TENANT’S ESTOPPEL CERTIFICATE 
  
 The undersigned, as Tenant under that certain Office Lease (the “Lease”) made and entered into as of
                                , by and between GAINEY ONE TRUST, a Maryland real
estate investment trust, as Landlord, and the undersigned, as Tenant, for Premises on the             
(            ) floor of the office building located at 5000 Shoreline Court, South San Francisco, California, certifies as follows: 
  
 1. Attached hereto as Exhibit A is a true and correct copy of the
Lease and all amendments and modifications thereto. The documents contained in Exhibit A represent the entire agreement between the parties as to the Premises. 
  
 2. The undersigned currently occupies the Premises described in the Lease, the Lease Term commenced on
            , and the Lease Term expires on             , and the undersigned has no option to terminate or cancel
the Lease or to purchase all or any part of the Premises, the Building and/or the Project. 
  
 3. Base Rent became payable on             . 
  
 4. The Lease is in full force and effect and has not been modified, supplemented or amended in any way except as provided in Exhibit A. 

 
 5. Tenant has not transferred, assigned, or sublet any portion of the
Premises nor entered into any license or concession agreements with respect thereto except as follows: 
  
  
  
 6. Tenant shall not modify the documents
contained in Exhibit A without the prior written consent of Landlord’s mortgagee. 
  
 7. All monthly installments of Base Rent, all Additional Rent and all monthly installments of estimated Additional Rent have been paid when due through
            . The current monthly installment of Base Rent is $            . 
  
 8. All conditions of the Lease to be performed by Landlord necessary to the
enforceability of the Lease have been satisfied and Landlord is not in default thereunder. In addition, the undersigned has not delivered any notice to Landlord regarding a default by Landlord thereunder. 
  
 9. No rental has been paid more than thirty (30) days in advance and no
security has been deposited with Landlord except as provided in the Lease. 
  

 EXHIBIT E 
 -1- 

 10. As of the date hereof, there are no existing defenses or offsets, or, to the undersigned’s
knowledge, claims or any basis for a claim, that the undersigned has against Landlord. 
  
 11. If Tenant is a corporation or partnership, each individual executing this Estoppel Certificate on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do
business in California and that Tenant has full right and authority to execute and deliver this Estoppel Certificate and that each person signing on behalf of Tenant is authorized to do so. 
  
 12. There are no actions pending against the undersigned under the bankruptcy
or similar laws of the United States or any state. 
  
 13. Other
than in compliance with all applicable laws and incidental to the ordinary course of the use of the Premises, the undersigned has not used or stored any hazardous substances in the Premises. 
  
 14. To the undersigned’s knowledge, all tenant improvement work to be
performed by Landlord under the Lease has been completed in accordance with the Lease and has been accepted by the undersigned and all reimbursements and allowances due to the undersigned under the Lease in connection with any tenant improvement
work have been paid in full. 
  
 The undersigned acknowledges that
this Estoppel Certificate may be delivered to Landlord or to a prospective mortgagee or prospective purchaser, and acknowledges that said prospective mortgagee or prospective purchaser will be relying upon the statements contained herein in making
the loan or acquiring the property of which the Premises are a part and that receipt by it of this certificate is a condition of making such loan or acquiring such property. 
  
 Executed at                     
on the              day of             , 20    . 
  

					
	 “Tenant”:
	 	 
		
	                                       
                                   ,
	 	 
	 a
                                        
            
	 	 

  

					
	 By:
	 	  

	 	 	 Its:
	 	  

		
	 By:
	 	  

	 	 	 Its:
	 	  

  

 EXHIBIT E 
 -2- 

 EXHIBIT F 
  
 FORM OF LETTER OF CREDIT 
  

			
	  

	  

	  

	  

	 Contact Phones:
	 	  

  
 IRREVOCABLE LETTER OF
CREDIT 
  

							
	                             , 20    
	 	 Our irrevocable standby Letter of Credit:

	 	 	 No.
                                        
                                        
               

	 Beneficiary:
	 	 
	 	 	 Applicant:

	  

	 	 
	  

	 	  

	  

	 	  

	 Attention:
	 	  

	 	  

	 	 	 	 	 Attention:
	 	  

			
	 	 	 	 	 Amount:  Exactly USD $
            
 (                                      
   Dollars)

	 	 	 	 	 Final Date of Expiration:

	 	 	 	 	            [INSERT DATE WHICH IS SIXTY (60) DAYS AFTER LEASE EXPIRATION DATE]

  
 We (the
“Bank”) hereby issue our irrevocable standby Letter of Credit No.              in Beneficiary’s favor for the account of the above-referenced Applicant, in the
aggregate amount of exactly USD $            . 
  
 This Letter of Credit is available with us at our above office by presentation of your draft drawn on us at sight bearing the clause: “Drawn under
                     [INSERT NAME OF BANK] Letter of Credit No.
                    ” and accompanied by the original of this Letter of Credit. Such sight draft may be signed by Beneficiary or
Beneficiary’s managing agent. 
  
 Special conditions:

  
 Partial draws, as well as multiple presentations and
drawings, under this Letter of Credit are permitted. Notwithstanding anything to the contrary contained herein, this Letter of Credit 

  

 EXHIBIT F 
 -1- 

 
shall expire permanently without renewal on
                     [INSERT DATE WHICH IS SIXTY (60) DAYS AFTER LEASE EXPIRATION DATE]. 
  
 This Letter of Credit shall be automatically extended for an additional
period of one (1) year, without amendment, from the present or each future expiration date but in any event not beyond                     
[INSERT DATE WHICH IS SIXTY (60) DAYS AFTER LEASE EXPIRATION DATE] which shall be the final expiration date of this Letter of Credit, unless, at least sixty (60) days prior to the then current expiration date, we notify you by registered
mail/overnight courier service at the above address that this Letter of Credit will not be extended beyond the current expiration date. 
  
 We hereby agree with you that all drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored upon presentation to
us on or before the expiration date of this Letter of Credit, regardless of whether Applicant disputes such presentation. 
  
 This Letter of Credit is transferable one or more times and any such transfer shall be effected by us, provided that you deliver to us your written
request for transfer in form and substance reasonably satisfactory to us. Beneficiary may, at any time and without notice to Applicant and without first obtaining Applicant’s consent thereto, transfer all or any portion of Beneficiary’s
interest in and to the Letter of Credit to another party, person or entity. The original of this Letter of Credit together with any amendments thereto must accompany any such transfer request. 
  
 Except so far as otherwise expressly stated, this documentary credit is
subject to Uniform Customs and Practice for Documentary Credits, 1993 Revision, International Chamber Of Commerce Publication No. 500. 
  

			
	  

		
	 By:
	 	  

	 	 	 Authorized signature

  
 Please direct any correspondence
including drawing or inquiry quoting our reference number to the above referenced address. 
  

 EXHIBIT F 
 -2- 

 EXHIBIT G 
  
 ENVIRONMENTAL REPORT 
  

“Phase I Environmental Site Assessment: Lot 10D, Sierra Point Development, Brisbane, California,” dated December 20, 1999, prepared by PHR
Environmental Consultants, Inc. 
  

 EXHIBIT G 
 -1-Development and License Agreement between Schering AG and Registrant.

  
 EXHIBIT 10.10

  
 DEVELOPMENT AND LICENSE AGREEMENT 
  
 THIS AGREEMENT is made the 2nd day of October 2003 by and between Exhale Therapeutics, Inc., a U.S. corporation having its principal place of business at 1301 Shoreway Road, Suite 320,
Belmont, California 94002, U.S.A. (hereinafter referred to as “Exhale”) and Schering Aktiengesellschaft, a corporation organized and existing under the laws of Germany having its principal place of business at Muellerstraße 178,
13353 Berlin, Germany (hereinafter referred to as “Schering”). Schering and Exhale are sometimes referred to herein individually as a “Party” and collectively as the “Parties”. 
  
 WITNESSETH: 
  
 WHEREAS, Schering is engaged in the development of the Substance (hereinafter defined) in the Field (hereinafter defined)
for the European Union and has been granted regulatory approval of the Substance in the Field by the European Commission; 
  
 WHEREAS, Exhale is interested in developing and commercializing the Substance in the Field for the U.S. and obtaining from Schering certain rights and
licenses therefor, and Schering is willing to grant such rights and licenses to Exhale under the terms and conditions hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and agreements contained herein, the Parties hereto, intending to be
legally bound, do hereby agree as follows: 
  
 ARTICLE I

  
 DEFINITIONS 
  
 The following terms, when capitalized, shall have the following meanings
(such meanings to be equally applicable to both the singular and plural forms of the terms defined), when used in this Agreement. 
  
 “Affiliate” means, with respect to a Party, any person, corporation, firm, joint venture, or other entity which, directly or indirectly, by
itself or through one or more intermediaries, controls, is controlled by, or is under common control with such Party. As used in this definition, the term “control” means the possession of the power to direct or cause the direction of the
management and policies of an entity, whether through the ownership of the outstanding voting securities or by contract or otherwise. 
  
 “Agreement” means this Development and License Agreement. 
  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 “ANDA” means a drug application filed with the FDA to obtain marketing approval for a generic
product. 
  
 “Audit Disagreement” shall have the meaning
set forth in Section 8.10(b). 
  
 “Best Efforts” means
the highest level of endeavor which a prudent business person in the prescription pharmaceutical industry would reasonably expend to accomplish an important objective. 
  
 “Business Day” means a day which is not a Saturday, a Sunday or other day on which banks are required or
authorized by law to be closed in New York, U.S., or in Berlin, Germany. 
  
 “CFR” means the US Code of Federal Regulations. 
  
 “Clinical Development” means the conduct of studies of the Product in humans in the Field to assess the dosing, safety and/or efficacy of the Product, including but not limited to Phase 1 Clinical Trials,
Phase 2 Clinical Trials and Phase 3 Clinical Trials. 
  
 “Commercialization” and “Commercialize” shall refer to all activities undertaken relating to the use, pre-marketing, marketing, sale, import for sale and distribution of the Product. 
  
 “Commercialization Plan” shall mean the document attached hereto as
Schedule 3. 
  
 “Commercially Reasonable Efforts” means
the level of endeavor which a prudent business person in the prescription pharmaceutical industry would ordinarily expend to accomplish an important objective. 
  

“Confidential Information” shall have the meaning set forth in Section 10.1. 
  
 “Control” or “Controlled” means the right to grant an exclusive license or sublicense of patent rights,
know-how, information or other intangible rights as provided for herein without violating the terms of any agreement or other arrangement with any Third Party. 
  

“Development” and “Develop” mean all activities relating to the Pre-clinical Development and Clinical Development of the Product in
the Field. 
  
 “Development and Commercialization
Committee” means the committee established by the parties pursuant to Section 5.1. 
  
 “Development Plan” shall mean the document attached hereto as Schedule 2. 
  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 2 

 “DMF” shall mean the drug master file concerning Drug Substance and Drug Product in the Field.

  
 “Domain Names” means any domain name identical or
confusingly similar with the Trademarks owned or controlled by Schering and used by Exhale for the Commercialization of the Product in the Field in the Territory. 
  
 “Drug Approval Application” means an application for Regulatory Approval which is required before commercial sale
or use of the Product as a drug in the Territory. 
  
 “Drug
Product” shall mean the pharmaceutical product for inhaled use which includes, as an active ingredient, the Substance (hereinafter defined), and complies with the relevant Specifications (hereinafter defined). 
  
 “Drug Substance” shall mean Schering’s proprietary compound
Iloprost in acid form, and complies with the relevant Specifications (hereinafter defined).  
  
 “Effective Date” shall mean the date when the Agreement is executed by both Parties and Exhale has provided written proof to Schering that it
has entered into an agreement with investors for at least USD 15 million of additional funding available for the Development and Commercialization of the Product in the Field in the Territory (as defined hereinafter). 
  
 “FDA” means the U.S. Food and Drug Administration, or any successor
health regulatory authority. 
  
 “Field” means inhaled
use of the Substance and/or Product in the indication “pulmonary hypertension” in humans. 
  
 “First Commercial Sale” means the date Exhale or an Affiliate or sublicensee of Exhale first sells commercially, pursuant to Regulatory
Approval, the Product in the Territory. 
  
 “Health
Regulatory Authority” means the FDA. 
  
 “IND”
means an Investigational New Drug application filed with the FDA pursuant to 21 CFR 312.1 et seq. 
  
 “Joint Inventions” shall have the meaning set forth in Section 11.1. 
  
 “Joint Patents” shall have the meaning set forth in Section 11.1. 
  
 “Know-how” means: (i) techniques, data and information relating to
the Substance, the Drug Substance, the Drug Product or the Product within the Field, including, but not limited to, inventions, practices, methods, manufacturing 
  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 3 

 
processes, knowledge, know-how, skill, trade secrets, experience, test data (including pharmacological, toxicological, preclinical and clinical test data);
data, records and information derived from Preclinical Development or Clinical Development, regulatory submissions, adverse reactions, analytical and quality control data, marketing, pricing, distribution, cost, sales and manufacturing data or
descriptions, and (ii) compound, compositions of matter and assays within the Field relating to the Substance, the Drug Substance, the Drug Product or the Product. 
  
 “Losses” shall have the meaning set forth in Section 13.1. 
  
 “Manufacture” or “Manufacturing” means all operations
required to manufacture, test, release, handle, store and destroy Drug Product or Drug Substance, or any step thereof, as the case may be. 
  
 “NDA” means a new drug application filed with the FDA to obtain marketing approval for the Product in the Field in the Territory (as defined
hereinafter). 
  
 “Net Sales” means gross sales by
Exhale or its Affiliates or any sublicensee of Product hereunder as reflected in invoices to unaffiliated Third Parties, less reasonable and customary deductions applicable to the Products for: 
  
 (a) transportation charges and insurance charges paid by Exhale; 

 
 (b) sales and excise taxes or customs duties or any other governmental
charges imposed upon the sale of the Product and paid by Exhale; 
  
 (c) allowances or credits to customers on account of governmental requirements, price differences, rejection, rebates, outdating, returns or recalls of the Product. 
  
 In the event the Product is sold in the form of a combination product containing one or more active ingredients in addition
to the Substance, Net Sales for such combination product will be adjusted by multiplying actual Net Sales of such combination product by the fraction A / (A+B) where A is the invoice price of the Product in which the Substance is the only active
ingredient, if sold separately, and B is the invoice price of any other active ingredient or ingredients in the combination, if sold separately. If the other active ingredient or ingredients in the combination are not sold separately, Net Sales
shall be calculated by multiplying actual Net Sales of such combination product by the fraction A / C where A is the invoice price of the Product in which the Substance is the only active ingredient if sold separately, and C is the invoice price of
the combination product. If neither the Product in which the Substance is the only active ingredient nor the other active component or components of the combination product is sold separately, Net Sales shall be determined by allocating actual Net
Sales of the combination product between the Substance and the other matter based upon the total actual sourcing cost thereof. 
  
 “Orphan Drug Application” means an application for Orphan Drug Approval. 
  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 4 

 “Orphan Drug Approval” means the granting of the orphan drug status for the Product in the
Field by the Health Regulatory Authority. 
  
 “Orphan Drug
Status” means the period during which the Product is approved as an orphan drug. 
  
 “Patent Expenses” means the fees, expenses and disbursements and outside counsel and agent fees incurred in connection with the preparation, filing, prosecution and maintenance of Patents including
Schering’s and Exhale’s costs of patent interference, opposition and nullity proceedings. 
  
 “Patents” means all patents, patent applications and patent applications hereinafter filed in any country of the world, including any
continuation, continuation-in-part, division, provisional or any substitute applications, any patent issued with respect to any such patent applications, any reissue, reexamination, renewal or extension (including any supplemental patent
certificate) of any such patent, and any confirmation patent or registration patent or patent of addition based on any such patent, and all foreign counterparts of any of the foregoing. 
  
 “Phase 3 Clinical Trials” has the meaning set forth in 21 CFR 312.21(c), as amended. 
  
 “Pre-clinical Development” means all activities relating to the
planning and execution of non-human studies conducted in in vitro or in relevant in vivo animal models directed toward obtaining Regulatory Approval of the Product in the Field in the Territory. This includes pre-clinical testing,
pharmacokinetics, toxicology, documentary and medical writing directly related to Pre-clinical Development activities, and related regulatory affairs. 
  
 “Product” means any pharmaceutical product for inhaled use which includes, as an active ingredient the Substance (hereinafter defined).

  
 “Regulatory Approval” means the approval by the
Health Regulatory Authority necessary for the Commercialization of the Product in the Field in the Territory. 
  
 “Schering Know-how” means Know-how within the Control of Schering as of the Effective Date or which comes within the Control of Schering during
the term of this Agreement and relates to the Development, Manufacture or Commercialization of the Substance, the Drug Substance, the Drug Product or the Product in the Field in the Territory. Notwithstanding anything herein to the contrary,
Schering Know-how shall exclude Schering Patents. 
  
 “Schering Patents” means any Patents in the Territory owned or Controlled by Schering or its Affiliates as of the Effective Date or which comes within the ownership or Control of Schering or any of its Affiliates during the term
of this 
  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 5 

 
Agreement covering the Development, Manufacture, or Commercialization of the Substance, the Drug Substance, the Drug Product or the Product in the Field.

  
 “Specifications” shall mean the tests, standard test
methods and acceptance limits for qualitative and quantitative characteristics of Drug Product and Drug Substance as set out in Schedule 4 (attached hereto and made a part hereof), as same may be amended from time to time by mutual agreement of the
Parties. 
  
 “Substance” means Schering’s
proprietary compound Iloprost Trometamol. 
  
 “Supply
Interruption Event” shall be deemed to have occurred upon the completion of either (i) two (2) consecutive quarters, or (ii) any three (3) quarters in a period of seven (7) consecutive quarters, in each case during which Exhale has received
less than sixty percent (60%) of the amount of Drug Product or Drug Substance (as applicable) for which Exhale had placed a firm order. 
  
 “Territory” means the U.S. 
  
 “Third Party” means any entity other than Schering or Exhale and their respective Affiliates. 
  
 “Trademark” means any trademark owned and Controlled by Schering
and used by Exhale in connection with the marketing of the Product in the Field in the Territory. 
  
 “U.S.” shall mean the United States of America and its territories and commonwealths and possessions, including without limitation the
Commonwealth of Puerto Rico. 
  
 “Valid Claim” shall
mean a claim in an issued, unexpired Schering Patent which has not been abandoned, withdrawn, canceled or disclaimed, nor held invalid or unenforceable by a court of competent jurisdiction in an unappealed or unappealable decision. 
  
 ARTICLE II 
  
 LICENSES TO PATENTS AND KNOW-HOW 
  

	2.1	As of the Effective Date of this Agreement, Schering hereby grants to Exhale the exclusive (even as to Schering) right and license under the Schering Patents and the Schering
Know-how to Develop and Commercialize the Product in the Territory and within the Field, subject to the terms and conditions hereof. 

  
 The granting of sublicenses by Exhale under the licenses set forth in this Agreement to Affiliates of Exhale or any Third Party shall be subject to

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 6 

 
Schering’s prior written consent; such consent not to be unreasonably withheld. 
  

	2.2	A list of the Schering Patents identified as of the Effective Date is attached hereto as Schedule 1. If at any time during the course of this Agreement any additional Patents are
acquired by or come under the Control of Schering that include any claims that are necessary or desirable for the Development, Manufacture or Commercialization of the Product in the Territory in the Field, such shall be added to the list attached
hereto as Schedule 1. 

  

	2.3	Promptly following the Effective Date, Schering shall disclose and provide to Exhale all Schering Know-how which is available at Schering and required for the Development or
Commercialization of the Product in the Field in the Territory (except for the DMF). If at any time during the course of this Agreement any additional Know-how necessary or desirable for the Development or Commercialization of the Product in the
Territory in the Field is acquired by, Controlled by, or otherwise becomes available to Schering, Schering shall promptly offer to Exhale to provide all such additional Know-how. If Exhale accepts this offer to receive such additional Know-how and
such additional Know-how is acquired from a Third Party against payment of a license or a lump sum fee, such fee shall be borne by Exhale, but fifty (50) percent of such may be deducted from the royalty otherwise payable to Schering pursuant to
Article VIII of this Agreement. 

  

	2.4	Notwithstanding the rights granted to Exhale pursuant to Section 2.1 above, Schering at all times reserves the right under the Schering Patents and the Schering Know-how to Develop,
Manufacture or Commercialize the Substance and/or the Product in any country of the world for any use outside the Field, and outside the Territory for any use either within or outside the Field. 

  

	2.5	Exhale covenants that it shall not use any of the Schering Know-how or Schering Patents to carry out any activity or exercise any right other than those expressly licensed by
Schering to Exhale pursuant to this Agreement. 

  
 ARTICLE III 
  
 DEVELOPMENT 
  

	3.1	Development 

  

	 	(a)	From the Effective Date, Exhale shall solely be responsible for and bear all costs of all Development of the Product in the Field in the Territory. 

  

	 	(b)	The expected Development to be conducted by Exhale pursuant to Section 3.1 (a) above including, but not limited to the timelines for such 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 7 

	 	 
Development shall be set out in the Development Plan attached hereto as Schedule 2. Any material change of or material deviation from this Development Plan
and any material redefinition of development goals and strategy requires Schering’s prior written consent, which shall not be unreasonably withheld and shall be deemed given if a refusal with a written explanation is not provided to Exhale
within fifteen (15) Business Days of Exhale’s request for such consent. 

  

	 	(c)	Exhale shall use Best Efforts to Develop the Product in accordance with the timelines set out in the Development Plan and to obtain Regulatory Approval for the Product in the Field
and bring the Product to market in the Territory by the dates specified in the Development Plan. 

  

	 	(d)	Exhale will refrain from any and all activities (other than those contemplated under this Agreement) which are likely to have a negative impact on the Development or
Commercialization of the Product outside the Territory. 

  

	3.2	Clinical Development Applications, Drug Approval Application and Orphan Drug Application 

  

	 	(a)	Exhale shall be responsible for the preparation, filing and prosecution of applications for permission to conduct Clinical Development in the Field in the Territory.

  

	 	(b)	Exhale shall be responsible for the preparation, filing and prosecution of the Drug Approval Application and Orphan Drug Application and shall seek Regulatory Approval and Orphan
Drug Approval for the Product in the Field in the Territory, including preparing all reports necessary as part of the Drug Approval Application or the Orphan Drug Approval. The Drug Approval Application and the Orphan Drug Application shall be filed
in the name of Exhale, and a copy of such Drug Approval Application and Orphan Drug Application shall be promptly provided to Schering. The DMF shall, however, be kept with and filed with the Health Regulatory Authority by Schering; Exhale shall be
authorized to refer to the DMF in its Drug Approval Application. In connection with the Drug Approval Application and the Orphan Drug Application being prosecuted by Exhale under this Section 3.2, Exhale agrees to provide Schering with a copy (which
may be wholly or partly in electronic form) of all filings to the Health Regulatory Authority that it makes hereunder, such copy to be provided at the same time as Exhale makes the filing with the Health Regulatory Authority.

  

	 	(c)	Cooperation. Exhale shall inform and consult with Schering prior to each regulatory submission to the Health Regulatory Authority, provided however, that prior to and following
Regulatory Approval or Orphan Drug Approval, Exhale shall be solely responsible for 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 8 

	 	 
interactions with Health Regulatory Authority. As between the Parties, Exhale shall be the legal and beneficial owner of the Drug Approval Application and
the Orphan Drug Application and related Regulatory Approval and Orphan Drug Approval in the Territory. 

  

	3.3	Support by Schering 

  
 At Exhale’s request, Schering shall provide Exhale with reasonable support in the form of consulting services directed toward securing and
maintaining Regulatory Approval and Orphan Drug Approval. In the first twelve (12) months after the Effective Date, Schering shall provide fifty (50) person hours per month of such consulting services free of charge as and when reasonably requested
by Exhale. Any consulting services by Schering after the first twelve (12) months or beyond fifty (50) hours per month during the first twelve (12) months shall be reimbursed by Exhale for time and expenses at pre-approved fully burdened cost
according to general accounting principles. Travel time associated with rendering such services shall be included as consulting time (not more than eight (8) hours per day). The parties agree that membership in the Development and Commercialization
Committee is not deemed to be the provision of consulting services and Exhale shall not reimburse any costs related to Schering’s participation in the Development and Commercialization Committee. 
  
 In addition, from the Effective Date, Exhale shall reimburse to Schering
reasonable, pre-approved traveling and accommodation expenses incurred in providing the aforementioned consulting services. 
  
 ARTICLE IV 
  
 COMMERCIALIZATION 
  

	4.1	Exhale as Sole Commercialization Party. Exhale shall have the exclusive right to Commercialize the Product, either by itself or through its Affiliates in the Field in the Territory.

  

	4.2	Commercialization Plan. The expected Commercialization to be conducted by Exhale pursuant to this Section 4 shall be set out in the Commercialization Plan attached hereto as
Schedule 3. Any material change of or material deviation from this Commercialization Plan and any material redefinition of commercialization goals and strategy requires Schering’s prior written consent, which shall not be unreasonably withheld
and shall be deemed given if a refusal with a written explanation is not provided to Exhale within fifteen (15) Business Days of Exhale’s request for such consent. 

  

	4.3	Commercialization Efforts. Exhale agrees to use Best Efforts with respect to the Commercialization of Products in the Field in the Territory as provided hereunder. Without limiting
the generality of the foregoing, Exhale shall 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 9 

	 	 
determine the pricing for the Product at its sole discretion, provided, however, that Exhale shall not sell the Product as a loss leader.

  

	4.4	Marketing and Sales Infrastructure. Exhale agrees to Commercialize the Product on the basis of a marketing and sales infrastructure which is specifically qualified for and
specifically concentrates on the Commercialization of the Product. The Commercialization through a Third Party shall only be permissible upon Schering’s prior written consent, except for the use of specialty pharmacies in the normal course of
distribution. 

  

	4.5	Exhale will not seek customers or establish any branch or commercialization depot for the Product in any country which is outside the Territory. Exhale will not, neither knowingly
nor if it gross negligently does not know, supply the Product to any customer outside the Territory or to any customer in the Territory for resale outside the Territory unless such supply is required by law. 

  
 Neither Schering nor any of its Affiliates will seek customers or establish
any branch or commercialization depot for the Product in the Field in the Territory. Schering and its Affiliates will not, neither knowingly nor if they gross negligently do not know, supply Product to any customer in the Territory or outside the
Territory for resale in the Field in the Territory unless such supply is required by law. 
  
 ARTICLE V 
  
 COOPERATION BETWEEN
THE PARTIES 
  

	5.1	Development and Commercialization Committee. Within thirty (30) days of the Effective Date, Schering and Exhale will establish a Development and Commercialization Committee. The
Development and Commercialization Committee will be composed of six (6) members, three (3) representatives appointed by Schering and three (3) representatives appointed by Exhale. Such representatives will include individuals with expertise in areas
such as clinical development, regulatory affairs and marketing. The Development and Commercialization Committee will meet (in person, telephonically or via videoconference). Upon reasonable request of either Party, employees of the Parties who have
expertise in certain other areas may attend meetings of the Development and Commercialization Committee as guests. Unless otherwise agreed between the Parties, meetings of the Development and Commercialization Committee shall take place quarterly.
One of the Exhale members of the Development and Commercialization Committee, chosen at the sole discretion of Exhale, along with one of the Schering members of the Development and Commercialization Committee, chosen at the sole discretion of
Schering, shall serve as co-chairs of the Development and Commercialization Committee. Either Party may replace any or all of its representatives at any time upon written notice to the other Party. If any issues or disputes cannot be resolved
unanimously within the Development 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 10 

	 	 
and Commercialization Committee, these issues shall be referred to Exhale’s CEO and the President of the Strategic Business Unit (“SBU”)
Specialized Therapeutics at Schering’s Affiliate Berlipharm, Inc., Montville, New Jersey, U.S.A., for resolution. If Exhale’s CEO and the President of the SBU Specialized Therapeutics cannot resolve the issue unanimously, Exhale’s CEO
shall discuss this issue with the board member of Schering who is responsible for the SBU Specialized Therapeutics. Should Exhale’s CEO and Schering’s board member not come to an unanimous resolution (i) with respect to an issue that could
be reasonably expected to have an adverse effect on Schering’s Product business outside the Territory, then Schering shall have the final decision, and (ii) with respect to any other issue, Exhale shall have the final decision, provided that
Exhale agrees to solely bear its increased cost or expense resulting from such decision. Each Party will disclose to the other proposed agenda items reasonably in advance of each meeting of the Development and Commercialization Committee. Each Party
shall bear its own costs for participation in the Development and Commercialization Committee. 

  

	5.2	Functions of Development and Commercialization Committee: The Development and Commercialization Committee shall: (a) discuss and supervise the development of the Product in the
Field in the Territory, including the progress and conduct of the Development, meeting Development goals, dealing with obstacles to successful Development, and the status of obtaining the Regulatory Approval; (b) discuss and supervise the
Commercialization of the Product, including the progress and conduct of the Commercialization, meeting Commercialization goals and dealing with obstacles to successful Commercialization; (c) discuss and supervise actions planned by Exhale in respect
of the Product where such actions could reasonably be expected to have a material impact on the Product in the Territory or outside the Territory; and (d) discuss in good faith other issues relating to the Commercialization of the Product in the
Territory and outside the Territory. All discussions and other activities of the Development and Commercialization Committee shall be subject to Article X of this Agreement. 

  

	5.3	Reports. Exhale shall provide to Schering no later than two (2) weeks before each meeting of the Development and Commercialization Committee a report detailing and evaluating all
issues relating to Sections 5.2 (a) to (d) above. Schering shall inform Exhale no later than one (1) week before each meeting of the Development and Commercialization Committee of any specific issues which it intends to discuss.

  

	5.4	Use of Data. Subject to Article X of this Agreement, Schering shall be authorized to use any and all Know-how generated or acquired by Exhale relating to the Product in the Field
under this Agreement in accordance with the license granted in Section 11.3(c) hereof. Exhale shall promptly upon such generation of Know-how offer to Schering to provide such newly generated or acquired Know-how to Schering. If Schering accepts to
receive such Know-how and such Know-how is acquired from a Third Party against payment of a license or a lump sum fee, half of such fee shall be borne by Schering. 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 11 

 ARTICLE VI 
  
 MANUFACTURE OF CLINICAL AND COMMERCIAL SUPPLY 
  

	6.1	Schering shall Manufacture or have Manufactured by an Affiliate or a Third Party and supply to Exhale Drug Product as and when reasonably requested and in accordance with the
relevant Specifications, and, subject to the terms of this Article VI (and prior to the Notice Period), Exhale shall purchase exclusively from Schering all Drug Product which is required for conduct of Clinical Development and Commercialization of
the Product in the Field in the Territory. With respect to this Manufacture and supply of the Drug Product by Schering, Schering shall provide Exhale priority that is at least as high as the priority Schering applies to its own internal requirements
for Drug Product and Drug Substance or any other higher priority Iloprost substance or product. The parties will determine and specify reasonably and in good faith a more detailed process for such Manufacture and supply consistent with the terms of
this Article VI in the form of a manufacturing and supply agreement to be completed within two (2) months from the execution of this Agreement (hereinafter the “Manufacturing & Supply Agreement”).  

  

	6.2	The ex works price for paper, one-color labeled ampoules, packed in a 300-ampoule boxes for Commercialization of Drug Product per ampoule shall be as follows:

  

			
	 - for a firm order of [***] to [***] million ampoules per year:
	  	EUR [***];
		
	 - for a firm order of more than [***] to [***] million ampoules per year:
	  	EUR [***];
		
	 - for a firm order of more than [***] million ampoules per year:
	  	EUR [***].

  
 The ex works price
for Drug Substance (if applicable) shall be EUR [***] per gram. 
  
 These amounts shall be adjusted from January 1 of each calendar year in order to keep pace with inflation or deflation. The adjustment shall be in accordance with the change of the “Price Index for Cost of Living of all Private
Households” by the German Federal Statistical Office for the respective previous year. 
  

	6.3	At any time during the term of this Agreement or the Manufacturing & Supply Agreement, Schering may terminate the Manufacture and supply of Drug Product to Exhale if Schering
decides to generally cease Manufacture of Drug Product (and/or Drug Substance if Schering decides to generally cease manufacture thereof) with twenty four (24) months’ (the “Notice Period”) prior written notice to Exhale provided
that: 

  

	 	(a)	With effect as of the expiry of the Notice Period, Exhale is automatically 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 12 

	 	 
granted the non-exclusive right and license under the Schering Patents and the Schering Know-how to Manufacture Drug Substance and/or Drug Product (as
applicable) or have Drug Substance and/or Drug Product (as applicable) Manufactured through a contract manufacturer for Clinical Development and Commercialization of the Product in the Field in the Territory (hereafter the “Manufacturing
License”). From the beginning of the Notice Period, Exhale is automatically granted the non-exclusive right and license to prepare such Manufacture of Drug Substance or Drug Product (as applicable). 

  
 If, after the beginning of the Notice Period, Schering wishes to grant a
(non-exclusive) Manufacturing License to a Third Party, Schering shall, before entering into any agreement with any Third Party offer to Exhale in writing to take an exclusive Manufacturing License. Exhale shall within thirty (30) days of receipt of
the written offer evaluate its interest in the exclusive Manufacturing License. If, after thirty (30) days, Exhale decides not to take the exclusive Manufacturing License, Schering shall be free to grant a non-exclusive Manufacturing License to any
Third Party. If, however, after thirty (30) days, Exhale wishes to take the exclusive Manufacturing License, Schering and Exhale will negotiate reasonably and in good faith binding commercially reasonable terms of an exclusive Manufacturing License
within additional forty-five (45) days. Should Schering and Exhale not come to an agreement concerning the exclusive Manufacturing License during this additional forty-five (45) days’ period, Schering shall be free to grant a non-exclusive
Manufacturing License to any Third Party. 
  

	 	(b)	Promptly following its written notice to Exhale pursuant to this Section 6.3, Schering shall disclose and provide to Exhale all Schering Know-how which is available at Schering and
required for the Manufacture of the Drug Product and/or Drug Substance (as applicable) in the Field in the Territory. Section 2.3 sentences 2 and 3 shall apply mutatis mutandis. 

  

	 	(c)	At Exhale’s request, Schering shall provide Exhale or its designated contract manufacturer with reasonable support in the form of consulting services directed towards the
completion of the transfer of the Manufacture to Exhale or its designated contract manufacturer. This support shall be provided within the framework determined in Section 3.3 above and shall include an additional two hundred and fifty (250) person
hours free of charge. 

  

	 	(d)	No later than by one (1) month before the expiry of the Notice Period, Schering shall supply to Exhale Drug Substance against payment of EUR [***] per gram in the amount which is
required to Manufacture Drug Product required for Commercialization of Product during a period of two (2) years based on Exhale’s forecast. This forecast by Exhale must be submitted to Schering no later than six (6) months before the expiry

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 13 

	 	 
of the Notice Period. In addition, throughout the Notice Period, Schering shall supply to Exhale on the same terms Drug Substance in the amount required by
Exhale to establish Manufacturing operations by the expiry of the Notice Period. The price per gram shall be adjusted pursuant to Section 6.2 sentence 2 above. If Schering has elected to terminate supply of Drug Product in accordance with this
Section, but not Drug Substance, Schering’s supply and license obligations under this Agreement (and under the Manufacturing and Supply Agreement) shall apply mutatis mutandis to Drug Substance in lieu of Drug Product as of the expiry of
the Notice Period. 

  

	6.4	Schering may permanently cease Manufacture and supply of Drug Substance and/or Drug Product without giving twenty four (24) months’ prior written notice if any regulatory
authority in any major market country outside the Territory requires the Drug Substance and/or Drug Product to be withdrawn from the market for safety reasons and Schering implements such withdrawal on a worldwide basis. In such event, Schering will
give Exhale such notice as is reasonable in the circumstances. Following notice by Schering under this Section 6.4, the provisions of Sections 6.3 (a), (b) and (c) above shall apply mutatis mutandis except that the Manufacturing License is
granted immediately upon receipt of Schering’s respective notice by Exhale. 

  

	6.5	The provisions of Sections 6.3 above shall also apply mutatis mutandis in the event of a Supply Interruption Event except that the Manufacturing License is granted
immediately upon the occurrence of the Supply Interruption Event. This shall, however, not apply if Exhale terminates the Agreement in the event of a Supply Interruption Event pursuant to Section 14.2 (b) hereof. 

  

	6.6	The Parties agree that Schering shall not be liable to Exhale for any indirect, incidental, special or consequential damages (including without limitation any damages arising from
lost profits) arising out of or in connection with any short fall or disruption of supply of Drug Product or Drug Substance for which Exhale had placed a firm order including, but not limited to a Supply Interruption Event. 

 

	6.7	In the event that the provisions of Section 6.3 or 6.5 are triggered, if Exhale incurs Manufacturing or acquisition costs for Drug Product or Drug Substance that exceed the cost
that had been paid to Schering therefor by [***] percent ([***]%), any cost exceeding such [***] percent ([***]%) cost increase shall be shared equally between Schering and Exhale to the effect that Exhale may deduct the respective amount from the
royalty otherwise payable to Schering pursuant to Article VIII hereof; such deduction shall, however, only be permissible up to an amount of [***] percent ([***]%) of these royalties otherwise payable to Schering. 

  

	6.8	Schering shall be free to change the Manufacturing process for Drug Product or Drug Substance provided that the Specifications of Drug Product or Drug Substance shall be equivalent
to or better than the Specifications in existence 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 14 

	 	 
prior to such change. Schering shall inform Exhale in advance in writing of any such change of the Manufacturing process. 

  

	6.9	Exhale undertakes to include in its firm orders for Drug Product or Drug Substance (as applicable) under the Manufacturing and Supply Agreement capacity in order to ensure the
maintenance by Exhale of a continuous safety stock of Drug Product or Drug Substance (as applicable) covering at least Exhale’s requirements of Drug Product or Drug Substance (as applicable) for a period of two (2) months as calculated pursuant
to the then current forecast for the next two (2) months following the respective firm order. 

  
 ARTICLE VII 
  
 INITIAL PAYMENT AND MILESTONE PAYMENTS 
  

	7.1	Initial Payment. Exhale shall pay to Schering a non-refundable signing fee equal to six (6) million US dollars (US$ 6,000,000) within five (5) Business Days of the Effective Date of
this Agreement, provided that the payment of the US$ 750,000.— which Exhale paid to Schering following the Memorandum of Understanding between the Parties dated June 20, 2003 shall be credited towards the signing fee. 

 

	7.2	Milestone Payments. Exhale shall make the following one-time payments (“Milestone Payments”) to Schering within thirty (30) Business Days after the first achievement of
each of the following milestones. 

  

			
	 MILESTONES

	  	PAYMENT (US$)

	 Upon first acceptance for filing of the Product NDA in the Field by the Health Regulatory Authority
	  	7,000,000
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

  
 Exhale shall notify
Schering promptly in writing of the occurrence of any of the above milestones. 
  
 ARTICLE VIII 
  
 ROYALTIES

  

	8.1	Royalty Rate. In further consideration of the rights and licenses granted to Exhale under Article II of this Agreement, Exhale shall pay to Schering royalties based on Net Sales of
the Product in the amount of [***]%. The sums to be paid by Exhale shall be exclusive of the costs for the supply of the Drug Product or Drug Substance pursuant to Article VI above. 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 15 

	8.2	Royalty Term: Except where expressly provided otherwise in this Agreement, all royalties shall be calculated from the date of the First Commercial Sale of the Product until the
later (the “Royalty Expiration Date”) of (i) ten (10) years from the First Commercial Sale of Product and (ii) the last to expire of any Patent which includes a Valid Claim applicable to the Product in the Territory.

  

	8.3	Royalty Reduction. Should (1) the Patents and the Orphan Drug Status expire before the Royalty Expiration Date and there be no Patent containing at least one Valid Claim and no
Orphan Drug Status and no other statutory exclusivity be in place which would prevent the sale of a generic version of the Product, and should, in this situation, any generic product occur or (2) the Product be approved by the Health Regulatory
Authority outside the Field based on an application by Schering, any of Schering’s Affiliates or a licensee of Schering other than Exhale (hereinafter the “Second Product”), and should this Second Product be used off-label in the
Field, and should sales of these generic products or sales of the Second Product for off-label use in the Field exceed [***] percent ([***] %) of Exhale’s Net Sales in any six (6) months period (as measured for generic products by IMS data
or similar data, and for off-label use through a recognized independent Third Party audit, such as IMS NDTI), then the royalty rate set out in Section 8.1 above shall over the period of three (3) years be reduced to [***] % as follows: (i) by
[***] percentage points to [***] % from the beginning of the calendar quarter following the calendar quarter in which the generic competition or the sales of the Second Product for off-label use in the Field exceeded the threshold of [***]
percent (15%) of Exhale’s Net Sales for a period of six (6) months (hereinafter the “Royalty Reduction Date”); (ii) again by [***] percentage points to [***] % from the end of the calendar year following the Royalty Reduction
Date; (iii) again by [***] percentage points to [***] % from the end of the second calendar year following the Royalty Reduction Date; and, (iv) from the end of the third calendar year following the Royalty Reduction Date and at any time
thereafter, the royalty rate shall again be reduced by [***] percentage points and thus be [***] %. The royalty rate shall in no event be reduced to less than [***] % under the terms of this Section 8.3. For the avoidance of doubt, it is
set forth herein that the royalty reduction set forth in this Section 8.3 will be triggered only once. 

  

	8.4	License following Expiration. After the Royalty Expiration Date for the Product, Exhale shall thereafter have an exclusive (even as to Schering), paid-up license to Schering
Know-how to Develop, and Commercialize the Product in the Field in the Territory as set out in Article II hereof. Furthermore, if Exhale has taken over Manufacture of Product in the Field in the Territory pursuant to Sections 6.3, 6.4 or 6.5 hereof,
Exhale shall thereafter have a non-exclusive, paid up license to Schering Know-How to Manufacture the Product. 

  

	8.5	Payment Reports and Payments. Exhale shall make payments to Schering quarterly within thirty (30) days after the end of each calendar quarter in which Net Sales occurred, such
period to be extended to fourty five (45) days if sales are made and recorded by a sublicensee of Exhale. A report summarizing the Net Sales of the Product during the relevant quarter shall be delivered to Schering within thirty (30) days or fourty
five (45) days (as 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 16 

	 	 
applicable) following the end of each calendar quarter for which payments are due. 

  

	8.6	Payments; Interest. Payments due under this Agreement shall be due on such date as specified in this Agreement and, in the event such date is not a Business Day, then the next
succeeding Business Day, and shall be made by wire transfer of immediately available funds to a bank account designated by Schering at least ten (10) days before payment is due. Any failure by Exhale to make a payment within five (5) Business Days
after the date when due, shall obligate Exhale to pay to Schering computed interest, the interest period commencing on the due date and ending on the payment day, at a rate per annum equal to the Prime Rate as publicly announced by Bank of America
on REUTERS_screen <USPRIME1> plus three (3) percentage points, or the highest rate allowed by law, whichever is lower. The interest calculation shall be based on the act/360 computation method. The interest rate shall be adjusted whenever
there is a change in the Prime Rate quotation on REUTERS screen <USPRIME1> mentioned above. Interest shall be compounded annually in arrears. Such interest shall be due and payable on the tender of the underlying principal payment.

  

	8.7	Taxes. Schering shall pay any and all taxes levied on account of all payments it receives under this Agreement. If laws or regulations require that taxes be withheld, Exhale will
(i) deduct those taxes from all remittable payments, (ii) timely pay the taxes to the proper taxing authority, and (iii) send proof of payment to Schering within thirty (30) days of receipt of confirmation of payment from the relevant taxing
authority. Exhale agrees to make lawful and reasonable efforts to minimize such taxes to Schering. 

  

	8.8	Payment Currency. Except for payments for Drug Product or Drug Substance pursuant to Article VI above, payments by Exhale under this Agreement shall be paid to Schering in U.S.
dollars. 

  

	8.9	Payments to or Reports by Affiliates. Any payment required under any provision of this Agreement to be made to either Party or any report required to be made by either Party shall
be made to or by an Affiliate of that Party if designated by that Party as the appropriate recipient or reporting entity without relieving such Party from responsibility for such payment or report. 

  

	8.10	Records of Revenues and Expenses. 

  

	 	(a)	Exhale will maintain complete and accurate records relevant to the calculation of revenues under this Agreement. Not more often than once each year, Exhale shall make the said
records available for inspection for the period required by applicable laws, but not less than two (2) years from creation of individual records by a certified public accountant or chartered accountant selected by Schering (subject to the consent of
Exhale not to be unreasonably withheld or delayed), for the sole purpose of verifying for Schering the correctness of 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 17 

	 	 
calculations and classifications of such revenues under this Agreement. Schering shall bear its own costs related to such audit; provided that, for any
underpayments greater than five (5) percent by Exhale, Exhale shall pay Schering the amount of underpayment, interest as provided for in Section 8.6 from the time the amount was due and Schering’s reasonable out-of-pocket expenses for such
audit. For any underpayments of less than five (5) percent by Exhale, Exhale shall pay Schering the amount of underpayment. Any overpayments by Exhale will be refunded to Exhale or credited to future royalties, at Exhale’s discretion. Any
records or accounting information received from Exhale shall be Confidential Information for the purposes of Article X. Results of any such audit shall be provided to both Parties and shall also constitute Confidential Information for the purposes
of Article X, provided that accountants are bound by appropriate confidentiality obligations and may only provide Schering with evidence of any royalty payment discrepancies. 

  

	 	(b)	If there is a dispute between the Parties following any audit performed pursuant to Section 8.10 (a), either Party may refer the issue (an “Audit Disagreement”) to an
internationally recognized independent certified public accountant or chartered accountant for resolution. In the event an Audit Disagreement is submitted for resolution by either Party, the Parties shall comply with the following procedures: (i)
the Party submitting the Audit Disagreement for resolution shall provide written notice to the other Party that it is invoking the procedures of this Section 8.10(b); (ii) within thirty (30) Business Days of the giving of such notice, the Parties
shall jointly select a recognized international accounting firm to act as an independent expert to resolve such Audit Disagreement. (iii) The Audit Disagreement submitted for resolution shall be described by the Parties to the independent expert,
which description may be in written or oral form, within ten (10) Business Days of the selection of such independent expert. (iv) The independent expert shall render a decision on the matter as soon as practicable. (v) The decision of the
independent expert shall be final and binding unless such Audit Disagreement involves alleged fraud, breach of this Agreement or construction or interpretation of any of the terms and conditions thereof. (vi) All fees and expenses of the independent
expert, including any third party support staff or other costs incurred with respect to carrying out the procedures specified at the direction of the independent expert in connection with such Audit Disagreement, shall be borne by each Party in
inverse proportion to the disputed amounts awarded to the Party by the independent expert through such decision (e.g. Schering disputes US$100, the independent expert awards Schering US$60, then Schering pays forty (40%) percent and Exhale pays
sixty percent (60%) of the independent expert’s costs). 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 18 

 ARTICLE IX 
  
 ADVERSE DRUG REACTIONS 
  

	9.1	Both parties agree to promptly exchange all information that relates to the safety of the Product and especially all adverse reactions and to comply with all applicable laws and
regulations relating to the Product concerning drug safety. 

  

	9.2	Within a period of two (2) months from the execution of the Agreement, and before enrolment of the first patient in a Product-related study that is conducted sponsored or
cosponsored by Exhale and before the first IND or NDA for the Product is granted to Exhale, the Parties will adopt a standard operating procedure to govern the investigation of and action to be taken with regard to Product-related adverse drug
experience reports (from both clinical studies and marketing experience), such that each of the Parties can comply with its legal obligations worldwide. The standard operating procedure will: (i) define responsibilities for adverse experience
handling for initial, follow-up and/or periodic submission to government agencies of significant information on the Product from pre-clinical laboratory, animal toxicology and pharmacology studies and pre-clinical and Clinical Development; and (ii)
include arrangements for the exchange of serious and non-serious cases including formats and timelines, periodic safety update reports, periodic reports and answers to safety-related queries by health regulatory authorities; and (iii) be promptly
amended as changes in legal obligations require or as otherwise agreed to by the Parties. 

  
 ARTICLE X 
  
 CONFIDENTIALITY 
  

	10.1	Confidentiality; Exceptions. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing, the Parties agree that the receiving Party shall keep
confidential and shall not publish or otherwise disclose or use for any purpose other than as provided for in this Agreement any Know-how and other information and materials furnished to it by the other Party pursuant to this Agreement or any
Know-how developed during the course of the collaboration hereunder, or any provisions of this Agreement that are the subject of an effective order of the Securities Exchange Commission granting confidential treatment pursuant to the Securities Act
of 1934 as amended (collectively “Confidential Information”), except to the extent that it can be established by the receiving Party that such Confidential Information: 

  

	 	(a)	was already known to the receiving Party, other than under an obligation of confidentiality, at the time of disclosure by the other Party; or 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 19 

	 	(b)	was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party; or 

  

	 	(c)	became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving Party in breach of
this Agreement. 

  

	 	(d)	was disclosed to the receiving Party, other than under an obligation of confidentiality, by a Third Party who had no obligation to the disclosing Party not to disclose such
information to others; or 

  

	 	(e)	was independently discovered or developed by the receiving Party as documented in its corporate records. 

  

	10.2	Authorized Disclosure. Each Party may disclose Confidential Information hereunder to the extent such disclosure is reasonably necessary in filing or prosecuting patent applications,
prosecuting or defending litigation, filing or updating the drug approval applications or orphan drug applications, complying with applicable governmental laws, rules and regulations or conducting Development or Commercialization, provided that, if
a Party is required by law or regulation to make any such disclosures of the other Party’s Confidential Information it will, except where impracticable for necessary disclosures, for example in the event of medical emergency, give reasonable
advance notice to the other Party of such disclosure requirement and, except to the extent inappropriate in the case of patent applications, will use its reasonable efforts to secure confidential treatment of such Confidential Information required
to be disclosed. In addition, and with prior written notice to the other Party of each Third Party with whom a confidential disclosure agreement is being entered into, each Party shall be entitled to disclose, under a binder of confidentiality,
Confidential Information to any Third Party for the purpose of carrying out the purposes of this Agreement. Nothing in this Article X shall restrict any Party from using for any purpose any Confidential Information independently developed by it
during the course of the collaboration hereunder, or from using Confidential Information that is specifically derived from pre-clinical or clinical trials to obtain regulatory approval or carry out marketing, sales or professional services support
functions as is customary in the pharmaceutical industry. Where materiality of disclosure requires a press release or other disclosure pertaining to this Agreement by one Party, the disclosing Party shall give at least three (3) Business Days’
advance notice to the other Party. 

  

	10.3	Termination of Prior Agreement and Negotiation Phase. The Parties agree that, as of the Effective Date, the Secrecy Agreement between the Parties dated June 25, 2002 is hereby
terminated and superseded by the provisions of this Agreement, and any disclosures made by Schering under the terms of the Secrecy Agreement shall be deemed to have been made under, and be governed solely by the terms of this Agreement. Furthermore,
the Parties agree that any disclosures made by either Party during the negotiations for 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 20 

	 	 
this Agreement shall be deemed to have been made under, and be governed solely by the terms of this Agreement. 

  

	10.4	Publications. Any press release or other major publication by Exhale relating to the Development or the Commercialization of the Product in the Field in the Territory shall be
provided to Schering at least ten (10) Business Days (or five (5) Business Days in the case of a press release) in advance of publication. Schering shall have the right to review and comment upon the publication and the parties will cooperate in
good faith to address any reasonable comments within such period. 

  

	10.5	Survival. This Article X shall survive the termination or expiration of this Agreement. 

  
 ARTICLE XI 
  
 OWNERSHIP OF INTELLECTUAL PROPERTY, PATENT RIGHTS, TRADEMARKS, DOMAIN NAMES AND USE OF NAME 
  

	11.1	Ownership. Each Party shall solely own, and it alone shall have the right to apply for, Patents within and outside of the Territory for any inventions made solely by that
Party’s employees or consultants in the course of performing work under this Agreement. Inventions made jointly by employees or consultants of Schering and Exhale relating to the use of the Product in the Field (herein referred to as
“Joint Inventions”) and any patents resulting therefrom (herein referred to as “Joint Patents”) shall be owned by the Parties jointly. Joint Inventions and Joint Patents may be used by either Party without accounting to or
further approval of the other Party, subject to Section 11.3(c). The granting of a license to any Third Party shall be subject to the other Party’s consent, such consent not to be unreasonably withheld. Either Party shall, however, be
authorized to license such Joint Invention or Joint Patent to any of its Affiliates without the other Party’s consent, subject to Section 11.3(c). 

  

	11.2	Disclosure of Inventions. Exhale shall disclose to Schering any invention made solely by its own employees or consultants relating to the Substance, Drug Substance, Drug Product or
the Product in the Field, and Schering shall disclose to Exhale any invention made solely by its own employees or consultants relating to the Substance, the Drug Substance (as applicable), the Drug Product or the Product in the Field in the
Territory reasonably in advance of the intended date for submission of a patent application to a governmental patent authority. 

  

	11.3	Patent Filings. 

  

	 	(a)	Each Party, at its own cost, shall prepare, file, prosecute and maintain Patents to cover inventions made solely by its own employees or consultants relating to Substance, the Drug
Substance, the Drug 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 21 

	 	 
Product or the Product in the Field (“Inventions”) and shall use Commercially Reasonable Efforts to file initially all such applications in and
outside the Territory. If either Party elects not to file, prosecute, or maintain any such Patent in any country, it shall give the other Party notice of this election within a reasonable period prior to allowing such Patent to lapse, become
abandoned or become unenforceable, and prior to taking any steps which would render such an Invention unpatentable and assign all rights in this Patent related to such country to the other Party allowing this other Party to file, prosecute, and
maintain this Patent in such country. 

  
 Schering shall have the right to file, prosecute and maintain Joint Patents and to determine the countries in which to file Joint Patents, provided that, in all cases, Schering shall reasonably consult and cooperate with Exhale in
connection therewith. Schering shall have the right to direct and control all material actions relating to the prosecution or maintenance of these Joint Patents in any country, including correspondence with patent authorities (Schering’s
address being named for services), interference proceedings, reexaminations, reissue, opposition and revocation proceedings. If either Party elects not to participate in any such Joint Patent or to quit its participation therein, it shall give
notice of this election to the other Party and assign all rights in this Joint Patent to the other Party allowing this Party to file, prosecute and maintain this Joint Patent as being such Party’s solely owned Patent. 
  
 Each Party shall keep the other informed of all actions taken under this
Section 11.3, and provide to the other Party all necessary declarations and cooperate with the other Party to enable Patents or Joint Patents to be issued or transferred. This Section 11.3 (a) shall survive the termination of this Agreement for any
reason. 
  

	 	(b)	The Parties agree to use Commercially Reasonable Efforts to ensure that any Patent or Joint Patent (on an Invention or Joint Invention) filed outside of the U.S. prior to filing in
the U.S. will be in a form sufficient to establish the date of original filing as a priority date for the purposes of a subsequent filing in the U.S. The Parties agree to use Commercially Reasonable Efforts to ensure that any Patent or Joint Patent
(on an Invention or Joint Invention) filed in the U.S. prior to filing outside the U.S. will be in a form sufficient to establish the date of original filing as a priority date for the purpose of a subsequent filing in any contracting state of the
Paris Convention. 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 22 

	 	(c)	License Grant. All Inventions by Schering employees or consultants and Schering’s rights in all Joint Inventions relating to the Substance, Drug Substance, Drug Product and/or
Product in the Field and the Territory shall be subject to the licenses granted to Exhale in Articles II and VI (as applicable) of this Agreement. 

  
 Exhale shall grant to Schering a royalty-free, exclusive, sub-licensable license to use these Inventions and any Patents
resulting therefrom in connection with the Product in the Field outside the Territory. Furthermore, Exhale shall grant to Schering a royalty-free, exclusive, sub-licensable license to use any Know-how generated by Exhale under this Agreement
relating to the Product in the Field in connection with the Product in the Field outside the Territory. 
  

	11.4	Enforcement Rights. 

  

	 	(a)	Notification of Infringement. If either Party learns of any infringement or threatened infringement by a Third Party of the Schering Patents or a Joint Patent, such Party shall
promptly notify the other Party and shall provide such other Party with all available evidence of such infringement. 

  

	 	(b)	Enforcement in the Territory. Subject to the next sentence, Schering shall be entitled to defend Schering Patents and Joint Patents in the Territory. Schering shall have the right,
but not the obligation, to institute, prosecute and control any action or proceeding with respect to infringement of any Schering Patents or Joint Patents covering the Development, Manufacture or Commercialization of the Product being developed or
marketed in the Territory, by counsel of its own choice. Schering shall undertake any such action concerning Schering Patents at its own expense. If such action is related to a Joint Patent, expenses shall equally be shared between the Parties.
Exhale shall have the right, at its own expense, to be represented in any action by counsel of its own choice. If Schering fails to bring an action or proceeding or otherwise take appropriate action to abate such infringement within a period of
ninety (90) days of notice by Exhale to Schering requesting action, Exhale will have the right to bring and control any such action or proceeding relating to Schering Patents by counsel of its own choice and Schering will have the right to be
represented in any such action by counsel of its own choice and at its own expense. If one Party brings any such action or proceeding, the other Party agrees to be joined as a party plaintiff if necessary to prosecute the action or proceeding and to
give the first Party commercially reasonable assistance and authority to file and prosecute the suit. Any damages or other monetary awards recovered pursuant to this Section 11.4 (b) shall be allocated first to the costs and expenses of the Party
bringing suit, then to the costs and expenses, if any, of the other Party. In the event that Exhale brings 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 23 

	 	 
such action, any amounts remaining shall be distributed as follows: compensatory damages shall be treated as Net Sales in the Territory and calendar quarter
received, and punitive and exemplary damages shall be paid sixty percent (60%) to Exhale and the remaining forty percent (40%) to Schering. In the event that Schering brings such action, sixty percent (60%) of any amounts remaining shall be payable
to Schering and the remaining forty percent (40%) to Exhale. 

  

	 	(c)	Settlement with a Third Party. The Party that controls the prosecution of a given action shall also have the right to control settlement of such action, provided however, that no
settlement shall be entered into without the written consent of the non-controlling Party if such settlement involves any payment or admission of liability by such non-controlling Party. 

  

	11.5	Defense and Settlement of Third Party Claims. If a Third Party asserts that a patent or other intangible right owned by it is infringed by the Product in the Territory, Schering
shall be entitled to solely defend against any such assertions at its cost and expense (subject to the provisions of Section 11.4 (b)), but no settlement may be entered into without the written consent of Exhale, which shall not be unreasonably
withheld. The costs for any such settlement (including, without limitation, damages, expense reimbursements, compliance, future royalties or other amounts) shall be paid fourty percent (40%) by Schering and sixty percent (60%) by Exhale. If any
Third Party is successful in any such claim and Exhale is ordered to make any payments to such Third Party in connection therewith, fifty (50%) percent of any such payments may be offset or deducted from the payment obligations of Exhale under the
Agreement. 

  

	11.6	Licenses under Third Party Patents. 

  

	 	(a)	Determination. Each Party agrees to bring to the attention of the other Party any Third Party Patent it discovers, or has discovered, and which relates to the subject matter of this
Agreement. Upon mutual agreement, the Parties may seek to obtain a license or right under one or more Third Party Patents covering any Product in the Territory in order to avoid infringement. In the event that Exhale determines that it is beneficial
for the Parties to obtain a license or right under one or more Third Party Patents covering any Product in the Territory and Schering objects to such determination within twenty (20) Business Days after such determination is made, the Parties shall
suspend action for a period of one (1) month unless a shorter period is reasonably required under the circumstances (the “Deferral Period”) to allow Schering to present its position to and discuss its position with Exhale. Such discussion
shall involve senior management of each Party. 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 24 

	 	(b)	Schering may present such facts, findings, conclusions and other information as it deems necessary to Exhale during the Deferral Period. Upon the earlier of the end of the Deferral
Period or Schering’s presentation of all of its information, Exhale shall evaluate such information and make a final determination, in its reasonable judgment, as to the desirability of obtaining a license or right under such Third Party
Patents. The decision reached by Exhale shall thereafter be final and binding on the Parties. 

  

	 	(c)	Licensing. In the event that the Parties agree to seek to obtain a license or right under any Third Party Patents or in the event of final determination by Exhale of the
desirability to obtain a license or right under any Third Party Patents, Exhale and Schering will make reasonable efforts to obtain such license or right. 

  

	 	(d)	Royalties. Any royalties and fees to be paid by Exhale to the Third Party in consideration of the license or right under the Third Party Patents with respect to the Product sold by
Exhale or its Affiliates shall be borne by Exhale but [***] ([***]%) percent of such may be deducted from the royalty otherwise payable to Schering pursuant to Article VIII of this Agreement. 

  

	11.7	Patent Expenses. All worldwide Patent Expenses with respect to Schering Patents shall be borne by Schering, subject to the terms of this Agreement; all worldwide Patent Expenses
with respect to Exhale’s Patents shall be borne by Exhale. All worldwide Patent Expenses with respect to Joint Patents shall be shared equally between the Parties. Should either Party quit its participation in a Joint Patent pursuant to Section
11.3 (a) above, the other Party acquiring such Joint Patent as being its solely owned Patent (as applicable) shall then take over all payment obligations concerning any co-inventions by employees. 

  

	11.8	Trademarks 

  

	 	(a)	Schering grants to Exhale an exclusive right to use the Trademark and Domain Name throughout the term of this Agreement and after expiration hereof (other than for Exhale’s
breach) provided, however, that Schering and Exhale shall share the Domain Name “... .com” by using a joint web page containing a link to each of the Parties individual web pages; the design of such joint web page to be discussed in and
supervised by the Development and Commercialization Committee. Exhale shall use the Trademark only for denomination of the Product in the Field in the Territory. The Parties will cooperate to find an alternative Trademark in the event that either
the FDA objects to the use of a Trademark, or the use of a Trademark in connection with the Product in the Field in the Territory potentially infringes or violates a Third Party’s rights. 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 25 

	 	(b)	Schering shall be responsible for the registration and maintenance of the Trademark which Exhale employs in connection with the marketing of the Product in the Field in the
Territory. Schering shall own and control the Trademark and bear all relevant costs relating thereto. 

  

	 	(c)	Exhale recognizes the exclusive ownership by Schering of any proprietary Schering name, logotype or Trademark furnished by Schering (including Schering’s Affiliates) for use in
connection with the marketing, sale or distribution of the Product. Exhale shall not, either while this Agreement is in effect, or at any time thereafter, register, use or challenge or assist others to challenge the Trademark or attempt to obtain
any right in or to any such name, logotype or trademarks confusingly similar to the Product as defined in this Agreement or any other goods and products, notwithstanding that such goods or products have a different use or are dissimilar to the
Product as defined in this Agreement. 

  

	 	(d)	Exhale shall not materially modify or alter the Trademark or do anything which should reasonably be expected to damage the Trademark. 

  

	 	(e)	Exhale shall promptly notify to Schering any actual alleged or threatened infringement of the Trademark or of any unfair trade practices, trade dress limitation, passing off of
counterfeit goods, or similar offenses of which it becomes aware. Only Schering will be authorized to initiate at its own discretion legal proceedings against any infringement or threatened infringement of a trademark applicable to the Product as
defined in this Agreement. Exhale shall cooperate fully in connection with Schering’s actions for the protection of the Trademark, at Schering’s expense. 

  

	11.9	Domain Names. Schering shall be responsible for the registration, hosting, maintenance and defense of the Domain Names. For the avoidance of doubt, Schering is allowed to register
in its own name, to host on its own servers, maintain and defend the Domain Names and use them for websites. 

  

	11.10 	Use of Names. Neither Party shall use the name of the other Party in relation to this transaction in any public announcement, press release or other public document without the
written consent of such other Party, which consent shall not be unreasonably withheld or delayed; provided however, that either Party may use the name of the other Party in any document filed with any Health Regulatory Authority, including the FDA
and the Securities and Exchange Commission, in which case Schering shall be referred to as “Schering AG, Germany”. 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 26 

 ARTICLE XII 
  
 REPRESENTATIONS AND WARRANTIES 
  

	12.1	Each of the Parties represents and warrants to the other Party as follows: 

  
 The Agreement is a legal and valid obligation binding upon such Party and enforceable in accordance with its terms. The execution, delivery and
performance of the Agreement by such Party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it is bound, nor to such party’s knowledge, violates any law or regulation of any
court, governmental body or administrative or other agency having jurisdiction over it. 
  

	12.2	Exhale hereby represents and warrants to Schering that Exhale: 

  

	 	(a)	Has employed and will in the future employ individuals of appropriate education, knowledge, and experience to conduct and oversee the conduct of the Development and
Commercialization of the Product in the Territory; 

  

	 	(b)	To the best of its knowledge, has not employed, or used a contractor or consultant that employs, any individual or entity debarred by the FDA, or, to the best knowledge of Exhale,
any individual who or entity which is the subject of an FDA debarment investigation or proceeding (or similar proceeding of EMEA), in the conduct of the pre-clinical or clinical studies of the Product; 

  

	 	(c)	There are no actions, suits, proceedings or unsatisfied judgments outstanding, including, without limitation, those that may be related to war reparations, pending or threatened
against or affecting Exhale, which may impair the ability of Exhale to perform its obligations under this Agreement, and Exhale is not aware of any existing ground on which any such action, suit or proceeding might be commenced with any reasonable
likelihood of success. 

  

	12.3	Schering hereby represents and warrants to Exhale that Schering: 

  

	 	(a)	To the best of its knowledge, has not employed, or used a contractor or consultant that employs, any individual or entity debarred by the FDA, or, to the best knowledge of Schering,
any individual who or entity which is the subject of an FDA debarment investigation or proceeding (or similar proceeding of EMEA), in the conduct of any activity relevant to the Substance, the Drug Substance or the Product; 

 

	 	(b)	Has not granted (and none of its Affiliates has granted), and during the term of this Agreement neither Schering (nor its Affiliates) will grant, 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 27 

	 	 
any right to any Affiliate or Third Party (or otherwise engage in any activity) in the Field relating to (i) the Schering Patents and/or Schering Know-how or
to the Substance, the Drug Substance, the Drug Product or the Product or (ii) any Trademark, in either case which would conflict with the rights granted to Exhale hereunder. Further, neither Schering nor any of its Affiliates will do any of the
following (and none of them has authorized or will authorize any Affiliate or Third Party to do any of the following): to sell, license or otherwise engage in any activity only relevant to any prostacyclin drug in the Field in the Territory (other
than as expressly specified in this Agreement or the Manufacturing and Supply Agreement); 

  

	 	(c)	To the best of its knowledge, (i) is the sole owner of all right, title and interest in and to the Schering Patents and the Schering Know-how; (ii) is not aware of any actual or
potential violation, infringement or misappropriation of any Third Party’s rights (or any potential claim thereof) by the Drug Substance or the Drug Product; (iii) is not aware of any material questions or challenges with respect to the
validity of the Schering Patents; (iv) is not aware of any patents or applications (other than the Schering Patents and Know-how and the Toray patent application WO98/37895) relevant to the Product in the Field in the Territory, excluding, however,
any Patents or patent applications relevant to any combination therapies involving the Product; and (v) is not aware of any information or circumstance that could materially and adversely affect the value of the Product in the Field in the Territory
(e.g., information regarding safety, efficacy, orphan drug status, or regulatory matters). 

  

	12.4	DISCLAIMER. EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A WARRANTY OR REPRESENTATION, IN PARTICULAR, EXCEPT AS EXPRESSLY STATED IN
THIS AGREEMENT, NOTHING SHALL BE CONSTRUED AS: 

  

	 	(a)	A WARRANTY OR REPRESENTATION BY SCHERING AS TO THE VALIDITY OR SCOPE OF ANY SCHERING KNOW-HOW OR SCHERING PATENT OR TRADEMARK OR THAT THE EXERCISE OF THE PATENT RIGHTS WILL NOT
INFRINGE UPON THE RIGHTS OF ANY THIRD PARTY; 

  

	 	(b)	A REQUIREMENT THAT SCHERING SHALL FILE ANY PATENT APPLICATION OR TRADEMARK APPLICATION; SECURE ANY PATENT OR TRADEMARK APPLICATION, OR MAINTAIN ANY PATENT OR TRADEMARK APPLICATION
IN FORCE; 

  

	 	(c)	AN OBLIGATION BY SCHERING TO BRING OR PROSECUTE ACTIONS OR SUITS AGAINST THIRD PARTIES FOR INFRINGEMENT; 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 28 

	 	(d)	GRANTING BY IMPLICATION, ESTOPPEL, OR OTHERWISE BY SCHERING ANY LICENSES OR RIGHTS UNDER PATENTS OR KNOW-HOW OR TRADEMARK OTHER THAN AS EXPRESSLY SET FORTH IN THIS AGREEMENT;

  

	 	(e)	A REPRESENTATION OR WARRANTY BY SCHERING OF THE ACCURACY, SAFETY, OR USEFULNESS FOR ANY PURPOSE OF ANY INTELLECTUAL PROPERTY AT ANY TIME MADE AVAILABLE TO EXHALE.

  
 ARTICLE XIII 
  
 INDEMNIFICATION 
  

	13.1	Subject to Section 13.3, Exhale hereby agrees to indemnify, save, defend and hold Schering and its officers, directors, consultants, agents and employees harmless from and against
any and all suits, claims, actions, demands, liabilities, expenses and/or losses, including reasonable legal expenses and attorneys’ fees, each to the extent paid by Schering to a Third Party (collectively, “Losses” and each a
“Loss”), resulting from or arising out of Exhale or its Affiliates’ or sublicensees Development or Commercialization or Manufacture (as applicable) of the Product in the Field in the Territory except to the extent such Losses result
from or arise out of (i) the inaccuracy of any representation of Schering set forth in this Agreement; (ii) the breach of any warranty or covenant contained in this Agreement by Schering; or (iii) the negligence or willful misconduct of Schering.

  

	13.2	Schering hereby agrees to indemnify, save, defend and hold Exhale and its officers, directors, consultants, agents and employees harmless from and against any and all Losses
resulting from or arising out of (i) the inaccuracy of any representation of Schering set forth in this Agreement; (ii) the breach of any warranty or covenant contained in this Agreement by Schering; or (iii) the negligence or willful misconduct of
Schering. 

  

	13.3	Each indemnified Party agrees to give the indemnifying Party prompt written notice of any Loss or discovery of fact upon which such indemnified Party intends to base a request for
indemnification under Sections 13.1 or 13.2. Each Party shall furnish promptly to the other copies of all papers and official documents received in respect of any Loss. With respect to any Loss relating solely to the payment of money damages and
which will not result in the indemnified Party becoming subject to injunctive or other relief or otherwise adversely affecting the business of the indemnified Party in any manner, and as to which the indemnifying Party shall have acknowledged in
writing the obligation to indemnify the indemnified Party hereunder, the indemnifying Party shall have the sole right to defend, settle or otherwise dispose of such Loss, on such terms as the indemnifying Party, in its sole discretion, shall

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 29 

	 	 
deem appropriate. The indemnifying Party shall obtain the written consent of the indemnified Party, which shall not be unreasonably withheld or delayed,
prior to ceasing to defend, settling or otherwise disposing of any Loss if as a result thereof the indemnified Party would become subject to injunctive or other equitable relief or any remedy other than the payment of money, which payment would be
the responsibility of the indemnifying Party. The indemnifying Party shall not be liable for any settlement or other disposition of a Loss by the indemnified Party which is reached without the written consent of the indemnifying Party. The
reasonable costs and expenses, including reasonable fees and disbursements of counsel incurred by any indemnified Party in connection with any Loss, shall be reimbursed on a quarterly basis by the indemnifying Party, without prejudice to the
indemnifying Party’s right to contest the indemnified Party’s right to indemnification and subject to refund in the event the indemnifying Party is ultimately held not to be obligated to indemnify the indemnified Party.

  

	13.4	Insurance. Each Party agrees to obtain and maintain in effect a policy or policies of insurance relating to the subject of its indemnity obligations hereunder. Such policies shall
be issued by one or more reputable insurers, and shall contain reasonable terms of coverage in light of the obligations set forth above. Exhale undertakes to obtain and maintain in effect a policy or policies of insurance covering during the
Clinical Development of the Product a minimum of USD 3 Mio. per single damage, and during the Commercialization of the Product a minimum of USD 10 Mio. per single damage. Upon the request of the other Party to this Agreement, each Party shall
provide evidence of insurance coverage in compliance with this Section to the other Party. In lieu of the insurance coverage described above, Schering shall have the right to undertake a program of self-insurance to cover its indemnity obligations
hereunder, with financial protection comparable to that arranged by it for its own protection with regard to other products in its product line. 

  

	13.5	This Article XIII shall survive the termination or expiration of this Agreement. 

  
 ARTICLE XIV 
  
 TERM, TERMINATION AND CHANGE OF CONTROL 
  

	14.1	Term. This Agreement shall commence as of the Effective Date and, unless sooner terminated as provided herein, shall continue in effect until no royalties are payable to Schering
under Article VIII hereunder. If Exhale has not within ten (10) Business Days from the execution of this Agreement by both Parties provided written proof to Schering that it has entered into an agreement with investors for at least USD 15 million of
additional funding available for the Development and Commercialization of the Product in the Field in the Territory, this Agreement shall remain null and void, and Schering shall be free to grant all rights and licenses referred to in this Agreement
to any Third Party. 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 30 

	14.2	Termination 

  

	 	(a)	Exhale may terminate the Agreement within sixty (60) days from its Pre-NDA meeting with the Health Regulatory Authority concerning the Product by advance written notice to Schering
if, as a result of this Pre-NDA meeting, Exhale determines that additional Phase 3 Clinical Trials beyond those conducted prior to the date hereof will be required for Regulatory Approval of the Product in the Field by the Health Regulatory
Authority. 

  

	 	(b)	Failure of Exhale or Schering to comply with any of their respective material obligations contained in this Agreement which constitutes a material breach (e.g. on the part of
Exhale, its obligation to pursue the Development Plan pursuant to Section 3.1 (b) and (c) above or the Commercialization Plan pursuant to Section 4.2 and 4.3 above), shall entitle the other Party to give the Party a default notice requiring it to
cure such default. If such default is not cured within ninety (90) days after receipt of such notice, the notifying Party shall be entitled (without prejudice to any of its other rights conferred on it by this Agreement) to terminate this Agreement.
Notwithstanding the foregoing, in the event of a non-monetary default, if the default is not reasonably capable of being cured within the ninety (90) day cure period by the defaulting Party and such defaulting Party is making a good faith effort to
cure such default, the notifying Party may not terminate this Agreement, provided however, that the notifying Party may terminate this Agreement if such default is not cured within one hundred eighty (180) days of such original notice of default.
The right of either Party to terminate this Agreement as herein above provided shall not be affected in any way by its waiver of, or failure to take action with respect to any previous default. 

  

	 	(c)	In the event that one of the Parties hereto shall go into liquidation, a receiver or a trustee be appointed for the property or estate of that Party and said receiver or trustee is
not removed within one hundred twenty (120) days, or the Party makes an assignment for the benefit of creditors, and whether any of the aforesaid bankruptcy events be the outcome of the voluntary act of that Party, or otherwise, the other Party
shall be entitled to terminate this Agreement. 

  

	 	(d)	In the event that this Agreement is terminated by Exhale in accordance with Section 14.2(a) or by either Party in accordance with Sections 14.2(b) or (c) hereof, Exhale will: (i)
deliver to Schering the Schering Know-How and assign to Schering its rights in said Schering Know-How, Schering Patents, Trademarks and Domain Names if any; (ii) not use the Schering Know-How as long as it has to be kept confidential pursuant to
Article X hereof; (iii) not infringe any of the Schering 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 31 

	 	 
Patents; (iv) make all payments accrued under this Agreement prior to the effective termination date; (v) transfer all regulatory filings and approvals and
all Orphan Drug Act petitions, designations and exclusivity related to the Product, to Schering upon Schering’s written request for same; (vi) refrain from filing an ANDA for a generic of the Product; and (vii) sell to Schering, at any time
within ninety (90) days of such termination, all or any portion of the inventory of the Substance, the Drug Substance, the Drug Product and/or the Product owned by Exhale or its Affiliates which are intended for sale in the Territory at a price
equal to Exhale’s or its Affiliate’s fully burdened costs for such inventory. If Exhale has terminated the Agreement pursuant to Section 14.2(b) above, Schering shall be obligated to purchase such inventory. Otherwise, Exhale shall only
sell and Schering shall only purchase all or any portion of the inventory at Schering’s election. Such election shall be made by Schering in writing in a notice to Exhale, and within thirty (30) days of such termination. If Schering purchases
such Exhale inventory, Exhale shall ship at Schering’s cost and direction such inventory to Schering. Schering shall pay for such inventory in advance of receipt of such inventory. 

  

	 	(e)	Each Party agrees (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim to take the benefit or advantage
of, any stay or extension law or any other law wherever enacted, now or at any time hereinafter in force, which would prohibit the termination of this Agreement by the other Party as provided in this Agreement, in any way modify the effects of
termination by such Party as provided in this Agreement, or prohibit or impede the exercise by such Party of any other rights set forth in this Article XIV or elsewhere in this Agreement. Each Party (to the extent it may lawfully do so) hereby
expressly waives all benefit and advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power granted to the other Party in this Agreement, but will permit the execution by such Party of every power
granted to such Party in this Agreement as though such law had not been enacted. 

  

	 	(f)	In the event that Exhale intends to pursue potential transactions as a result of which (i) the majority of the outstanding voting securities or substantially all of the assets or
business of Exhale would become owned by a pharmaceutical company that sells a pulmonary hypertension drug that is directly competitive with the Product (a “Competitor Pharmaceutical Company”) that did not own a majority of the voting
securities of Exhale as of the Effective Date; or (ii) the actual power to direct or cause the direction of the management and policies of Exhale through ownership of the outstanding voting securities would become vested in a Competitor
Pharmaceutical Company that did not possess such power as of the Effective Date (hereinafter collectively the “Change of Control Event”), Schering will have the option to 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 32 

	 	 
exercise an exclusive right of first negotiation to acquire Exhale as described below (the “Option”). Before entering a transaction with any Third
Party which would result in a Change of Control Event, Exhale shall notify Schering that it may pursue such potential transactions and Schering shall have ten (10) Business Days from the date of such notice to provide Exhale written notice that it
has exercised its Option. If Schering does not provide written notice that it has exercised its Option within such ten (10) Business Day period, then Exhale shall have no further obligation with respect to the Option and shall be free to negotiate
and enter into any transaction which results in a Change of Control Event with any Third Party. If Schering properly exercises the Option as described above, then the Parties shall negotiate reasonably and in good faith concerning the acquisition of
Exhale by Schering for a period of forty-five (45) days. If the parties do not execute and deliver an agreement for the acquisition of Exhale by Schering within such forty-five (45) days’ period, then Exhale shall be free to negotiate and enter
into any transaction which results in a Change of Control Event with any Third Party; provided that if such Third Party transaction is, when taken as a whole, materially and substantially less favorable to Exhale than the terms last offered to
Exhale by Schering, then Exhale will offer Schering such transaction for a period of ten (10) days before entering such transaction with a Third Party. 

  

	 	(g)	Except where expressly provided for otherwise in this Agreement, termination or expiration of this Agreement shall not relieve the Parties hereto of any liability, including any
obligation to make payments hereunder, which accrued hereunder prior to the effective date of such termination or expiration, nor preclude either Party from pursuing all rights and remedies it may have hereunder or at law or in equity with respect
to any breach of this Agreement nor prejudice any Party’s right to obtain performance of any obligation. 

  

	14.3	Surviving Rights. The rights and obligations set forth in this Agreement shall extend beyond the termination of the Agreement only to the extent expressly provided for herein as
follows: Sections 6.6 and 8.4, Article IX, Article X, the last sentence of Section 11.1, Sections 11.3(a), and (c), 11.8(a), 11.10, and 12.4, Article XIII, Sections 14.2(d), (e) and (g), 14.3 and Article XV. 

  
 ARTICLE XV 
  
 MISCELLANEOUS 
  

	15.1	Assignment. 

  

	 	(a)	Subject to compliance with Section 14.2 (f) above, either party may assign any of its rights or obligations under this Agreement to any of its Affiliates or to a successor to all or
substantially all of such party’s 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 33 

	 	 
business or assets; provided, however, that such assignment shall not relieve such party of its responsibilities for performance of its obligations under
this Agreement. Except as provided herein, neither Party to this Agreement shall have the right to assign its rights or obligations under this Agreement. 

  

	 	(b)	This Agreement shall be binding upon and inure to the benefit of the permitted assigns of the Parties. Any purported assignment not in accordance with this Agreement shall be void.

  

	15.2	Force Majeure. Neither Party shall lose any rights hereunder or be liable to the other Party for damages or losses on account of failure of performance by the defaulting Party if
the failure is occasioned by government action, war, fire, explosion, flood, strike, lockout, embargo, act of God or any other cause beyond the reasonable control of the defaulting Party, provided that the Party claiming force majeure has extended
reasonable efforts to avoid or remedy any such force majeure, continues to employ such efforts and promptly notifies the other Party of such force majeure event. 

  

	15.3	Further Actions. Each Party agrees to execute, acknowledge and deliver such further instruments and to do all such other acts, as may be necessary or appropriate in order to carry
out the purposes and intent of this Agreement. 

  

	15.4	No Trademark Rights. Except as otherwise provided herein, no right, express or implied, is granted by this Agreement to use in any manner the names “Exhale” or
“Schering” or any other trade name or trademark of the other Party or its Affiliates in connection with the performance of this Agreement. 

  

	15.5	Notices. All notices hereunder shall be in writing, effective upon receipt, and shall be delivered personally, mailed by registered or certified mail (return receipt requested,
postage prepaid), or sent by express courier service, to the other Party at the following addresses (or at such other address for a Party as shall be specified by like notice): 

  

	 	(a)	If to Exhale: 

  
 1301 Shoreway Road 
 Suite 320 
 Belmont, California 
 94002, U.S.A.

  

	 	(b)	If to Schering: 

  
 Schering AG 
 Attn. Dr. Bernhard Fritz-Zieroth

 Muellerstraße 178 
 D-13353 Berlin 
 Germany 
  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 34 

 With copy to: 
  

Schering AG 
 Legal Department 

Muellerstraße 178 
 D-13353 Berlin

 Germany 
  

	15.6	Waiver. Except as specifically provided herein, the waiver from time to time by either of the Parties of any of their rights or their failure to exercise any right or remedy shall
not operate or be construed as a continuing waiver of same or of any other of such Party’s rights or remedies provided in this Agreement. 

  

	15.7	Severability. Each Party hereby agrees that it does not intend, by its execution hereof, to violate any public policies, statutory or common laws, rules, regulations, treaties or
decisions of any government agency or executive body thereof of any country or community or association of countries. Should one or more provisions of this Agreement be or become invalid, the Parties hereto shall substitute, by mutual consent, valid
provisions for such invalid provisions, which valid provisions in their economic and other effects are sufficiently similar to the invalid provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such
valid provisions. In case such valid provisions cannot be agreed upon, the invalidity of one or several provisions of this Agreement shall not affect the validity of this Agreement as a whole or the validity of any portions hereof, unless the
invalid provisions are of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the invalid provision. 

  

	15.8	Ambiguities. The Parties acknowledge and agree that: (a) each Party and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its
revision; (b) the rule of construction to the effect that any ambiguities are resolved against the drafting Party shall not be employed in the interpretation of this Agreement; and (c) the terms and provisions of this Agreement shall be construed
fairly as to the Parties hereto and not in favor of or against any Party, regardless of which Party was generally responsible for the preparation of this Agreement. 

  

	15.9	Governing Law and Place of Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws in force in the State of New York, U.S., without giving effect
to the choice of laws provisions thereof. Any legal action arising under this Agreement shall be instituted in the state or U.S. district Courts for the Southern District of New York and each Party consents to the jurisdiction of such courts for the
purposes of any such action. 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 35 

	15.10 	Headings. The Section and Paragraph headings contained herein are for the purposes of convenience only and are not intended to define or limit the contents of said Sections or
Paragraphs. 

  

	15.11 	Counterparts. This Agreement may be executed by the Parties in one or more counterparts. Such counterparts may be exchanged by facsimile (provided that each executed counterpart is
transmitted in one complete transmission). Where there is an exchange of executed counterparts, each Party shall be bound by this Agreement notwithstanding that original copies of this Agreement may not be exchanged immediately. The Parties shall
cooperate after execution of this Agreement and exchange by facsimile to ensure that each Party obtains an original, executed copy of this Agreement. 

  

	15.12 	Entire Agreement; Amendments. This Agreement, including all Schedules attached hereto, all documents and things incorporated herein by reference and all of the documents delivered
concurrently herewith set forth all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto and supersede and terminate all prior agreements and understandings between the Parties.
No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties hereto unless reduced to writing and signed by the respective authorized officers of the Parties. 

  

	15.13 	Expenses. Except as otherwise specified in this Agreement, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisers and
accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such costs and expenses. 

  

	15.14 	Independent Contractors. The status of the Parties under this Agreement shall be that of independent contractors. Neither Party shall have the right to enter into any agreements on
behalf of the other Party, nor shall it represent to any person that it has any such right or authority. Nothing in this Agreement shall be construed as establishing a partnership or joint venture relationship between the Parties.

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 36 

 IN WITNESS WHEREOF, Exhale and Schering have caused this Agreement to be executed as of October 2, 2003
by their respective duly authorized representatives. 
  

									
	 SCHERING AKTIENGESELLSCHAFT
  
 Date:    October 2, 2003
	 	 	 	 EXHALE THERAPEUTICS, INC.
  
 Date:    October 2, 2003

					
	/s/    B. PUTZ        	 	 	 	/s/    ULRICH KOCH        	 	 	 	/s/    DONALD J. SANTEL        
	
	 	 	 	
	 	 	 	

	 Dr. Barbara Putz
 Head CCD 5TH Eur.
	 	 	 	 Dr. Ulrich Koch
 Head Corp. Bus. Dev.
	 	 	 	 Name:  Donald J. Santel
 Title:  President & CEO

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 37 

					
	  

	 	
	 	

	Name:	 	Name:	 	Name:
	Title:	 	Title:	 	Title:

  
 Schedules: 
  

	1.	List of Schering Patents 

  

	2.	Development Plan 

  

	3.	Commercialization Plan 

  

	4.	Specifications of Drug Product and Drug Substance 

  

	*	CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION 

  

 38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]