Document:

EXHIBIT 10.2

            [LOGO]
Member of NASD, MSRB and SIPC
    EMPIRE FINANCIAL GROUP, INC
   14 East 60 Street, 2nd Floor
         NY, NY I0022
         646-329-7007
         973-277-3634

                                                                December 2, 2006

Mr. Peter Katevatis
Chief Executive Officer/ President
Mediscience Technology Corporation
1235 Folkestone Way
Cherry hill, NJ 08034

Dear Mr. Peter Katevatis:

      This  letter  (the   "Agreement")   constitutes   the  agreement   between
Mediscience  Technology  Corporation (the "Company") and Empire Financial Group,
Inc.  ("Empire") that Empire shall serve as the placement agent for the Company,
on a "best  efforts"  basis,  in connection  with the proposed offer and private
placement  (the  "Offering") by the Company of $2.0 million and is predicated on
successful completion of the doe diligence investigation by Empire.

      A. Fees and Expenses. In connection with the Services described above, the
Company shall pay to Empire the following:

      1. Placement  Agent's Fee. As compensation  for its services in connection
with the Private  Placement,  the Company  agrees to pay Empire a  nonrefundable
retainer fee of $10,000 ("Ten Thousand  Dollars") in cash upon execution of this
letter agreement.  The Company shall pay to Empire a cash placement fee equal to
twelve percent (12.0%) of the aggregate purchase price paid by each purchaser of
Securities that were placed in the Offering (the "Placement  Agent's Fee").  The
Placement Agent's Fee wilt be deducted from the gross proceeds of the Securities
sold at the Closing,  The amount of the retainer tee  previously  paid to Empire
will be credited  on a dollar for dollar  basis  toward the cash  portion of the
placement fee.

      2,  Expenses.  In addition  to any fees  payable to Empire  hereunder  and
regardless of whether an Offering is  consummated,  the Company hereby agrees to
reimburse Empire, within ten (10) days after

<PAGE>

Written  request  therefore,  all  reasonable  travel  and  other  out-of-pocket
expenses  incurred  in  connection  with  Empire's  engagement,   including  the
reasonable  fees and  expenses of Empire's  counsel but which shall he capped at
$5,000. The Company shall also be responsible for ordering up to ten (10) Lucite
deal  tombstones  and shall  release a press  release at the  conclusion  of the
transaction that shall be reviewed and approved by Empire.

      3. Warrants: In addition to the Placement Agent's Fee, upon the closing of
the sale of securities in connection with the Offering,  the Company shall issue
to the  Placement  Agent  warrants  to  purchase  shares of common  stock of the
Company  (the  "Warrants")  in an amount  ten  percent  (100%) of the  amount of
Securities issued or issuable by the Company in the Offering. The Warrants shall
be  exercisable at 120% of the Offering Price or at the market price on the date
of signing this  agreement,  whichever is lower.  The Warrants shall expire five
years  from the  date of  issuance.  The  Warrants  shall  be in the same  form,
including,  without  limitation,  the same registration rights and anti-dilution
provisions,  as the  securities  sold in the  Offering;  provided  however,  the
Warrants shall include a "net issuance" exercise feature.

      B. No-Shop.  Until the Offering  contemplated hereby is completed,  but no
later than 180 days from the date hereof  (the  "No-Shop  Period"),  the Company
agrees that it will not negotiate  with any other person  relating to a possible
public or private offering or placement of the Company's securities.

      C. Term and Termination of Engagement.  Except as set form below, the term
(the Term") of Empire's  engagement will begin on die date hereof and end on the
earlier of the  consummation  of due Offering or 20 days after receipt by cither
Party hereto of written notice of termination;  provided that no such notice may
be given by the  Company  during the No Shop  Period.  Notwithstanding  any such
expiration  or  termination,  Paragraphs D through N shall survive and remain in
full force and effect and be binding on the parties  hereto,  in accordance with
their terms.

      D. Fie  Tail.  Empire  shall  be  entitled  to a  Placement  Agent's  Fee,
calculated in the manner provided in Paragraph A, with respect to any securities
purchased in any subsequent offering  ("Subsequent  Offering") by investors whom
Empire bad introduced to the Company during the Term if such Subsequent Offering
is  consummated  at any  time  within  (i) the  24-month  period  following  the
consummation  of  this  Offering  and  (ii),  if no  Offering  shall  have  been
consummated  during the Term,  the six month period  following the expiration or
termination of this Agreement.

      E. Future  Transactions,  If, at any time  during the Tern,  or within the
24-month  period  following  consummation  of the Offering  during the Term, the
Company or any of its subsidiaries (i) disposes of or acquires business units or
acquires any of its outstanding securities or makes any exchange or tender offer
or enters into a merger,  consolidation  or other  business  combination  or any
recapitalization,  reorganization,  restructuring or other similar  transaction,
including,  without limitation,  an extraordinary  dividend or distribution or a
spin-off or split-off (each, a "Transaction"), and the Company decides to retain
a financial advisor for such Transaction,  Empire shall have the right to act as
one of the  Company's  financial  advisors  for any  such  Transaction;  or (ii)
decides to  finance  or  refinance  any  indebtedness  using a manager or agent,
Empire (or any affiliate  designated by Empire) shall have the right to act as a
manager,  placement  agent or lead  agent  with  respect  to such  financing  or
refinancing- or (iii) determines to raise funds by means of a public offering or
a Offering of equity or debt securities using an underwriter or placement agent,
Empire  shall  have the right to act as an  underwriter,  initial  purchaser  or
placement agent for such financing.  In each case where Empire so serves, Empire
shall be  entitled  to at least one third of the total  fees paid in  connection
with the foregoing  transactions.  If Empire or its affiliates decides to accent
any such engagement, the agreement governing such engagement will

                                       2

<PAGE>

Contain,  among other things,  provisions for customary fees for Transactions of
similar  size  <<fid  nature and the  provisions  of this  Agreement,  including
indemnification, which are appropriate to such Transaction.

      F. Use of  information.  The Company  will  furnish  Empire  such  written
information as Empire reasonably  requests in connection with die performance of
its services hereunder.  The Company understands,  acknowledges and agrees that,
in  performing  its services  hereunder,  Empire will use and rely entirely upon
such information as Well as publicly available information regarding the Company
and other  potential  parties to an  Offering  and that  Empire  docs not assume
responsibility  for independent  verification of the accuracy or completeness of
any  information,  whether  publicly  available  or  otherwise  furnished to it,
concerning the Company or otherwise relevant to an Offering,  including, without
limitation,  any financial  information,  forecasts or projections considered by
Empire in connection with the provision of its services.

      G.   Confidentiality,   In  the  event  of  the   consummation  or  public
announcement  of any  Offering,  Empire  shall  have the right to  disclose  its
participation in such Offering,  including, without limitation, the placement at
its cost of  "tombstone"  advertisements  in financial and other  newspapers and
journals.  Empire  agrees to Steep  confidential  during die Term,  and for five
years after the expiration or any termination,  of this Agreement,  all material
nonpublic information provided to it by the Company,  except as required by law,
pursuant to an order of a court of  competent  jurisdiction  or the request of a
regulatory  authority  having  jurisdiction  over  Empire or its  affiliate*  (a
"Regulatory  Request"*,  or as  contemplated  by the  terms  of this  Agreement,
provided  Empire  shall,  if permitted by law, give notice to the Company of the
request or order  (other than a  Regulatory  Request)  to furnish the  nonpublic
information.  Notwithstanding  any provision herein to the contrary,  Empire may
disclose nonpublic  information to its affiliates,  agents and advisors whenever
Empire  determines  that such  disclosure  is  necessary to provide the services
contemplated  hereunder,  provided  that  Empire  advises  such  persons  of the
obligation  to maintain  the  confidentiality  of such  information  and remains
liable  under  this  Agreement  for  any  breach  of   confidentiality  by  such
affiliates,  agents and advisors.  Notwithstanding  any provision  herein to the
contrary, this Section G shall not bar disclosure of, and Empire and the Company
and their respective  representatives or agents may disclose, without limitation
of any kind,  any  information  with  respect  to the *1ax  treatment"  and "tax
structure"  (in each case,  within the  meaning of Treasury  Regulation  Section
1.6011 -4) of the Offering  and related  transactions  and ail  materials of any
kind  (including  opinions or other tax analyses) that are provided to Empire or
the Company or such representatives or agents relating to such tax treatment and
tax structure,  provided that with respect to any document or similar item, this
sentence  shad only apply to such  portions of the document or similar item that
relate to the tax treatment or tax structure of the Transactions.

      H.  Securities  Matters.  The Company shall be responsible for any and ail
compliance with the securities laws applicable to it, including Regulation D and
the  Securities Act of 1933, and Rule 506  promulgated  there under,  and unless
otherwise  agreed in writing,  all state  securities  ("blue sky") laws.  Empire
agrees to cooperate with counsel to the Company in that regard.

      I.  Indemnity.  Empire  and  the  Company  agree  to  the  indemnification
provisions as set forth In annex A attached hereto.

      J. Limitation of Engagement to the Company.  The Company acknowledges that
Empire has been retained only by the Company,  that Empire is providing services
hereunder  as an  independent  contractor  (and not in any  fiduciary  or agency
capacity)  and that the  Company's  engagement  of Empire k not  deemed to be on
behalf of, and is not intended to confer rights upon, any shareholder, owner or

                                       3
<PAGE>

partner of the Company or any other person not a party hereto as against  Empire
or any of its affiliates, or any of its or their respective officers, directors,
controlling  persons  (within the meaning of Section 15 of the Act or Section 20
of the Securities Exchange Act of 1934),  employees or agents.  Unless otherwise
expressly  agreed in  writing  by  Empire,  no one  other  than the  Company  is
authorized  to rely upon this  Agreement or any other  statements  or conduct of
Empire,  and no one other than the Company is intended  to be a  beneficiary  of
this Agreement.  The Company  acknowledges  that any  recommendation  or advice,
written or oral,  given by Empire to the  Company  in  connection  with  Empires
engagement  is  intended  solely  for  the  benefit  and  use of  the  Company's
management  and  directors  in  considering  a possible  Offering,  and any such
recommendation or advice is not on behalf of, and shall not confer any rights or
remedies upon, any other person or be used or relied upon for any other purpose.
Empire  shall  not have the  authority  to make any  commitment  binding  on the
Company. The Company, in its sole discretion, shall have the right to reject any
investor introduced to it by Empire.

      K. Limitation of Empire's Liability to the Company, Empire and the Company
further agree that neither  Empire nor any of its affiliates or any of its their
respective  officers,  directors,  controlling  persons  (within  the meaning of
Section 15 of the Act or Section 20 of the Exchange  Act of !934),  employees or
agent*  shall  have any  liability  to the  Company,  its  security  holders  or
creditors,  or any person  asserting  claims on behalf of or in the right of the
Company (whether direct or indirect, in contract, tort, for an act of negligence
or otherwise) for any lasses,  fees, damages,  liabilities,  costs,  expenses or
equitable  relief  arising out of or relating to this  Agreement or the Services
rendered  hereunder,  except for losses,  fees, damages,  liabilities,  costs or
expenses  that  arise out of or are based on any  action of or failure to act by
Empire and that are finally determined (by a court of competent jurisdiction and
after  exhausting all appeals) to have resulted solely from die gross negligence
or willful  misconduct  of Empire.  With  respect  to  alleged  breaches  id the
Confidentiality provisions herein by Empire, the Company shall have the right to
pursue equitable relief in addition to any other remedy in equity or law.

      L.  Governing  Law. This  Agreement  shall be governed by and construed in
accordance  with the laws of the State of New York.  Any  disputes  which  arise
under this  Agreement,  even after the  termination of this  Agreement,  will be
heard only in the state or federal courts located in the City of New York, State
of New York.  The parties  hereto  expressly  agree to submit  themselves to the
jurisdiction of the foregoing courts in the City of New York, State of New York.
The  parties  hereto  expressly  waive any rights  they may have to contest  the
jurisdiction,  venue or authority of any court  sitting in die City and State of
New York.  In the event of the  bringing  of any  action,  or by a parry  hereto
against the other party  hereto,  arising out of or relating to this  Agreement,
the party in whose favor the final  judgment or award shall be entered  shall be
entitled  to have and  recover  from the other  party  die  costs  and  expenses
incurred in connection therewith, including its reasonable attorneys' fees.

      M. Notices. All notices hereunder will be in writing and sent by certified
mail, hand delivery, overnight delivery or tealeaf, if sent to Empire, to Empire
Financial Group.  Inc., 2170 West State Road 434 Suite #100 Longwood,  FL 32?7<<
Attention  Messrs,  Don Wojnowski,  jr., with a copy to Morse,  Zelnick.  Rose &
Under, LLP, 405 Park Avenue, New York, NY 10022, Attention:  Stephen A. Zelnick,
Esq. and if sent to the  Company,  will be mailed,  delivered  or telefaxed  and
confirmed to Mr. Peter  Kalevatis,1235  Folkestone  Way,  Cherry Hill, NJ 08034.
Notices sent by certified  mail shall be deemed  received five days  thereafter,
notices seat by hand delivery or overnight  delivery shall be deemed received on
the date of the relevant  written  record of receipt,  and notices  delivered by
telefax shall be deemed  received as of the date and time printed thereon by the
telefax machine.

      N.  Miscellaneous.  This Agreement shall not be modified or amended except
in writing

                                       4
<PAGE>

Signed by Empire and the Company.  This Agreement shall not be assigned  without
the prior written consent of Empire and the Company; provided,  however, that in
the event of a Offering in which the Company is not the surviving corporation or
entity, the Company's remaining obligations (except with respect to the Fee Tail
and Future  Offerings),  if any, under this Agreement shall remain in full force
and effect and become obligations of the surviving  corporation or entity.  This
Agreement  constitutes  the  entire  agreement  of Empire and the  Company  with
respect to the subject matter hereof and supersedes any prior agreements. If any
provision of this Agreement is determined to be invalid or  unenforceable in any
respect, such determination will not affect such provision in any other respect,
and the remainder of the Agreement  shall remain in full force and effect.  This
Agreement may be executed in counterparts  (including  facsimile  counterparts),
each of which  shall be  deemed  an  original  but ail of which  together  shall
constitute one and the same instrument.

      In   acknowledgment   that  the   foregoing   correctly   sets  forth  the
understanding  reached  by  Empire  and the  Company,  please  sign in the space
provided below, whereupon this letter shall constitute a binding Agreement as of
the date indicated above.

                                        Very truly yours,
                                        EMPIRE FINANCIAL GROUP, INC.

                                        By: /s/ Don Wojnowski
                                        Don Wojnowski
                                        Chief Executive
                                        Officer

Confirmed and accepted as of the date first above written

Mediscience Technology
Corporation Peter Katevatis

By: /s/ Peter Katevatis

President and Chief Executive Officer

                                       5
<PAGE>

                                     Annex A

December 2.2006

Empire Financial
Group, Inc. 14 East
60th Street, 2nd
Flow-NY, NY 10022

Gentlemen:

      In  connection  with  our  engagement  of  Empire  Financial  Group,  Inc.
("Empire")  as our  placement  agent,  we  hereby  agree to  indemnify  and hold
harmless  Empire and its  affiliates,  and the respective  controlling  persons,
directors, officers, shareholders,  agents and employees of any of the foregoing
(collectively the "Indemnified  Persons"),  from and against any and all claims,
actions,  suits,   proceedings  (including  those  of  shareholders),   damages,
liabilities and expenses  incurred by any of them (including the reasonable fees
and expenses of counsel),  (collectively a "Claim"), which are (A) related to or
arise out of (i) any actions taken or omitted to be taken  (including any untrue
statements  made or any statements  omitted to be made) by the Company,  or (ii)
any actions taken or omitted to be taken by any Indemnified Person in connection
with our  engagement  of  Empire,  or (B)  otherwise  relate  to or arise out of
Empire's  activities  on our  behalf  under  Empire's  engagement,  and we shall
reimburse any Indemnified Person for all out-of*pocket  expenses  (including the
reasonable fees and expenses of counsel) incurred by such Indemnified  Person in
connection  with  investigating,  preparing or defending any such Claim to which
the indemnified Person is, or is threatened to be made, a party. Notwithstanding
anything to the  contrary set forth above,  we will not be  responsible  for any
Claim,  or  for  any  reimbursement  of any  Indemnified  Person's  expenses  in
connection  with such  Claim,  witch is finally  judicially  determined  to have
resulted from the gross  negligence or willful  misconduct of any person seeking
indemnification  for such Claim.  We further  agree that no  Indemnified  Person
shall have any  liability  to us fur or in  connection  with our  engagement  of
Empire  except  for any Claim  incurred  by us as a result  of such  Indemnified
Person's gross negligence or willful misconduct.

      We further agree that we will not,  without the prior  written  consent of
Empire,  settle,  compromise  or  consent  to the entry of any  judgment  in any
pending or threatened  Claim in respect of which  indemnification  may be sought
hereunder (whether or not any Indemnified Person is an actual or potential party
to such  Claim),  unless  such  settlement,  compromise  or consent  includes an
unconditional, irrevocable release of each indemnified Person hereunder from any
and all liability arising out of such Claim.

      Promptly upon receipt by an Indemnified  Person of notice of any complaint
or  the   assertion  or   institution   of  any  Claim  with  respect  to  which
indemnification is being sought hereunder,  such Indemnified Person shall notify
us in writing of such complaint or of such assertion or institution  but failure
to so notify us shall not relieve us from any obligation we may have  hereunder,
except and only to the extent such failure  results in die  forfeiture  by us of
substantial  rights  and  defenses.  If we so  elect  or are  requested  by such
Indemnified  Person,  we will assume the defense of such  Claim,  including  the
employment of counsel reasonably satisfactory to such indemnified Person and the
payment of the fees and expenses of such counsel.  In the event,  however,  that
legal counsel to such Indemnified Person

                                       6
<PAGE>

reasonably  determines and provides  written  correspondence  to as, that having
common  counsel would present such counsel with a conflict of interest or if the
defendant in, or target of, any such Claim,  includes an Indemnified  Person and
us, and legal counsel to such Indemnified Parson reasonably concludes that there
may be legal defenses  available to such indemnified Person different from or in
addition to those available to us, then such  Indemnified  Person may employ its
own separate counsel to represent or defend H in any such Claim and we shall pay
the  reasonable  fees and  expenses of such  counsel.  Notwithstanding  anything
herein to the contrary,  if we Sis! inner/ or diligently to defend,  contest, or
otherwise  protect against any Claim, the relevant  Indemnified Party shall have
the right,  but not the  obligation,  to defend,  contest,  compromise,  settle,
assert cross claims, or counterclaims or otherwise protect against the same, and
shall be fully indemnified by us therefor,  in accordance with the terms of this
Agreement, including without limitation, for the reasonable fees and expenses of
its counsel and all amounts paid as a result of such Claim or the  compromise or
settlement  thereof.  In addition,  with respect to any Claim in which we assume
the defense,  the indemnified Person shall have the right to participate in such
Claim and to retain its own counsel therefor at its own expense.

      Empire  agrees that it will  indemnify  and hold  harmless the Company and
each  of  its  directors  and  officers,  employees,  agents,  stockholders  and
affiliates  against any Loss whosoever  (including,  but not limited to, any and
all legal fees and other  expenses)  to which the  Company or any such person or
entity  may be  subject  solely as a result of  statements  made in the  Private
Placement  Memorandum  based solely upon  information  supplied by Empire to the
Company in writing or based upon the gross  negligence or willful  misconduct of
Empire or any of its  employees or agents in acting as  Placement  Agent for the
offering and sale hereunder.

      We agree mat if any indemnity sought by an Indemnified Person hereunder is
held by a court to be unavailable  for any reason then {whether or not Empire is
the Indemnified  Person),  we and Empire shall contribute to the Claim for which
such  indemnity is held  unavailable  in such  proportion as is  appropriate  to
reflect the relative  benefits to us, on the one hand,  and Empire on the other,
in  connection  with  Empire's  engagement  referred  to above,  subject  to the
limitation  that in no event shall the amount of Empire's  contribution  to such
Claim exceed the amount of fees actually  received by Empire from us pursuant to
Empire's  engagement.  We hereby agree that the relative  benefits to us. on the
one hand, and Empire on the other, with respect to Empire's  engagement shall be
deemed to be in the same  proportion  as (a) the total value paid or proposed to
be paid or received by us or our  stockholders  as the case may be,  pursuant 10
the Offering  (whether or not  consummated)  for which you arc engaged to render
services  bears  to (b)  the fee  paid or  proposed  to be  paid  to  Empire  in
connection with such engagement.

      Our indemnity,  re-imbursement  and  contribution  obligations  under this
Agreement  shall be in  addition  to,  and  shall in no way  limit or  otherwise
adversely  affect any rights  that any  Indemnified  Party may have at law or at
equity.

      The validity and  interpretation of the agreement shall be governed by and
construed  and  enforced  in  accordance  with the laws of the State of New York
applicable to agreements made and to be fully performed  therein  (excluding the
conflicts  of laws  rules).  Each of Empire and the Company  hereby  irrevocably
submits to the jurisdiction of any court of the State of New York, County of New
York or fee United States  District Court for the Southern  District of New York
for the  purpose of any suit,  action or other  proceeding  arising  out of this
agreement or the Offerings  contemplated  hereby, which is brought by or against
Empire or the  Company  and in  connection  therewith,  each of  Empire  and the
Company  (i) hereby  irrevocably  agrees  flat all claims in respect of any such
salt, action or proceeding may be heard

<PAGE>

and  determined in any such court,  (ii) to the extent that it has acquired,  or
hereafter may acquire,  any immunity from jurisdiction of any such court or from
any legal process therein,  it hereby waives, to the fullest extent permitted by
law,  such  immunity  and (iii)  agrees  not to  commence  any  action,  suit or
proceeding  relating to this  agreement  other than ia any such  court.  Each of
Empire  and the  Company  hereby  waives  and  agrees  not to assert in any such
action,  suit or proceeding,  to the fullest extent permitted by applicable law,
any claim that (a) it is not personally  subject to the jurisdiction of any such
court,  (b) it is immune  from any legal  process  (whether  through  service or
notice, attachment prior to judgment, attachment in aid of execution,  execution
or otherwise) with respect to its property of (c) any suit, action or proceeding
is brought in an inconvenient forum.

      The  provisions  ot this  Agreement  shall remain in full force and effect
following the completion or termination of Empire's engagement.

                                              Very truly yours,
                                              Mediscience Technology Corporation

                                              By: /s/Peter Katevatis
                                                  ---------------------------
                                              Chief Executive Officer

Confirmed and agreed to:
EMPIRE FINANCIAL GROUP, INC.

By: /s/ Don Wojnowski
Don Wojnowski
Chief Executive
Officer

Date:Exhibit 10.7

 

EXHIBIT 10.7

LEASE

RREEF AMERICA REIT II CORP. FFF,

a Maryland corporation,

Landlord,

and

AVANIR PHARMACEUTICALS,

a California corporation,

Tenant

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	page
	1.

	 	USE AND RESTRICTIONS ON USE
	 	 	1	 
	2.

	 	TERM
	 	 	2	 
	3.

	 	RENT
	 	 	3	 
	4.

	 	RENT ADJUSTMENTS
	 	 	4	 
	5.

	 	SECURITY DEPOSIT
	 	 	7	 
	6.

	 	ALTERATIONS
	 	 	7	 
	7.

	 	REPAIR
	 	 	8	 
	8.

	 	LIENS
	 	 	8	 
	9.

	 	ASSIGNMENT AND SUBLETTING
	 	 	8	 
	10.

	 	INDEMNIFICATION
	 	 	10	 
	11.

	 	INSURANCE
	 	 	11	 
	12.

	 	WAIVER OF SUBROGATION
	 	 	11	 
	13.

	 	SERVICES AND UTILITIES
	 	 	11	 
	14.

	 	HOLDING OVER
	 	 	13	 
	15.

	 	SUBORDINATION
	 	 	13	 
	16.

	 	RULES AND REGULATIONS
	 	 	13	 
	17.

	 	REENTRY BY LANDLORD
	 	 	13	 
	18.

	 	DEFAULT
	 	 	14	 
	19.

	 	REMEDIES
	 	 	14	 
	20.

	 	TENANT’S BANKRUPTCY OR INSOLVENCY
	 	 	16	 
	21.

	 	QUIET ENJOYMENT
	 	 	16	 
	22.

	 	CASUALTY
	 	 	17	 
	23.

	 	EMINENT DOMAIN
	 	 	18	 
	24.

	 	SALE BY LANDLORD
	 	 	18	 
	25.

	 	ESTOPPEL CERTIFICATES
	 	 	18	 
	26.

	 	SURRENDER OF PREMISES
	 	 	18	 
	27.

	 	NOTICES
	 	 	19	 
	28.

	 	TAXES PAYABLE BY TENANT
	 	 	19	 
	29.

	 	RELOCATION OF TENANT
	 	 	19	 
	30.

	 	PARKING
	 	 	20	 
	31.

	 	DEFINED TERMS AND HEADINGS
	 	 	21	 
	32.

	 	TENANT’S AUTHORITY
	 	 	21	 
	33.

	 	FINANCIAL STATEMENTS AND CREDIT REPORTS
	 	 	21	 
	34.

	 	COMMISSIONS
	 	 	22	 
	35.

	 	TIME AND APPLICABLE LAW
	 	 	22	 
	36.

	 	SUCCESSORS AND ASSIGNS
	 	 	22	 
	37.

	 	ENTIRE AGREEMENT
	 	 	22	 
	38.

	 	EXAMINATION NOT OPTION
	 	 	22	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	page
	39.

	 	RECORDATION
	 	 	22	 
	40.

	 	OPTION TO RENEW
	 	 	22	 
	41.

	 	RIGHT OF FIRST OFFER
	 	 	23	 
	42.

	 	SUITE SIGNAGE
	 	 	24	 
	43.

	 	BUILDING SIGNAGE
	 	 	24	 
	44.

	 	BUILDING SIGNAGE
	 	 	25	 
	45.

	 	MONUMENT SIGNAGE
	 	 	26	 
	46.

	 	LANDLORD DEFAULT
	 	 	26	 
	47.

	 	LIMITATION OF LANDLORD’S LIABILITY
	 	 	26	 

EXHIBIT A – FLOOR PLAN DEPICTING THE PREMISES

EXHIBIT A-1 – SITE PLAN

EXHIBIT B – INITIAL ALTERATIONS

EXHIBIT C – INITIAL PREMISES COMMENCEMENT DATE MEMORANDUM

EXHIBIT C-1 – ADDITIONAL PREMISES COMMENCEMENT DATE MEMORANDUM

EXHIBIT D – RULES AND REGULATIONS

EXHIBIT E – EARLY POSSESSION AGREEMENT

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

ii

 

GROSS (BY) OFFICE LEASE

REFERENCE PAGES

	 	 	 
	BUILDING:

	 	101 Enterprise
	 

	 	Aliso Viejo, California
	 
	 	 
	LANDLORD:

	 	RREEF AMERICA REIT II CORP. FFF,
	 

	 	a Maryland corporation
	 
	 	 
	LANDLORD’S ADDRESS:

	 	101 Enterprise, Suite 150
	 

	 	Aliso Viejo, California 92656
	 
	 	 
	WIRE INSTRUCTIONS AND/OR ADDRESS FOR
	 	RREEF AMERICA REIT II CORP. FFF
	RENT PAYMENT:

	 	Department 2796
	 
	 	Los Angeles, California 90084-2796
	 
	 	 
	LEASE REFERENCE DATE:

	 	April 28, 2006
	 
	 	 
	TENANT:

	 	AVANIR PHARMACEUTICALS,
	 

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

	 	101 Enterprise, Suite 300
	 

	 	Aliso Viejo, California 92656
	 
	 	 
	     (b) Prior to beginning of Term (if
different):

	 	11388 Sorrento Valley Road
	 

	 	San Diego, California 92121
	 
	 	 
	PREMISES ADDRESS: 
	 	101 Enterprise, Suites 300, 320, 330 & 335

Aliso Viejo, California 92656

	 
	 	 
	PREMISES RENTABLE AREA:

	 	Approximately 17,609 sq. ft. (consisting
of approximately 5,074 sq. ft. known as
Suite 300 and approximately 6,245 sq. ft.
known as Suite 320 (collectively, the
“Initial Premises”) and approximately
4,939 sq. ft. known as Suite 330 and
approximately 1,351 sq. ft. known as
Suite 335 (collectively, the “Additional
Premises”)). The Initial Premises and
Additional Premises shall be collectively
referred to herein as the “Premises”.
For an outline of the Premises see
Exhibit A.
	 
	 	 
	SCHEDULED COMMENCEMENT DATES:

	 	Initial Premises: June 15, 2006
(“Scheduled Initial Premises Commencement
Date”)
	 
	 	 
	 

	 	Additional Premises: April 15, 2007
(“Scheduled Additional Premises
Commencement Date”)
	 
	 	 
	TERM OF LEASE:

	 	Approximately five (5) years beginning on
the Initial Premises Commencement Date
and ending on the Termination Date. The
period from the Initial Premises
Commencement Date to the last day of the
same month is the “Commencement Month.”

	 	 	 
	 
	 	 
	iii
	Initials

 

 

	 	 	 
	TERMINATION DATE:

	 	The last day of the sixtieth
(60th) full calendar
month after (if the Commencement
Month is not a full calendar
month), or from and including (if
the Commencement Month is a full
calendar month), the Commencement
Month, which Termination Date is
estimated to be June 14, 2011.
	 
	 	 
	ANNUAL RENT and MONTHLY INSTALLMENT OF

RENT FOR THE INITIAL PREMISES (Article
3):
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Period	 	Rentable Square	 	Annual Rent	 	Annual Rent	 	Monthly Installment
	from	 	through	 	Footage	 	Per Square Foot	 	 	 	of Rent
	6/15/2006*
	 	**   	 	 	 	 	11,319	 	 	$	31.80	 	 	$	359,944.20	 	 	$	29,995.35	***

 

			
	*	 	Or the actual Initial Premises Commencement Date.
	 
	**	 	One day prior to the Additional Premises Commencement Date.
	 
	***	 	Subject to abatement pursuant to Section 3.3 of this Lease.

ANNUAL RENT and MONTHLY INSTALLMENT OF

RENT FOR THE PREMISES (Article 3):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Period	 	Rentable Square	 	Annual Rent	 	Annual Rent	 	Monthly Installment
	from	 	through	 	Footage	 	Per Square Foot	 	 	 	of Rent
	Additional
Premises
Commencement Date
	 	 	6/14/2007	 	 	 	17,609	 	 	$	31.80	 	 	$	559,966.20	 	 	$	46,663.85	 
	6/15/2007
	 	 	6/14/2008	 	 	 	17,609	 	 	$	32.75	 	 	$	576,694.75	 	 	$	48,057.90	 
	6/15/2008
	 	 	6/14/2009	 	 	 	17,609	 	 	$	33.73	 	 	$	593,951.57	 	 	$	49,495.96	 
	6/15/2009
	 	 	6/14/2010	 	 	 	17,609	 	 	$	34.74	 	 	$	611,736.66	 	 	$	50,978.06	 
	6/15/2010
	 	 	6/14/2011	 	 	 	17,609	 	 	$	35.78	 	 	$	630,050.02	 	 	$	52,504.17	 

	 	 	 
	BASE YEAR (EXPENSES):

	 	2006
	 
	 	 
	BASE YEAR (TAXES):

	 	2006
	 
	 	 
	BASE YEAR (INSURANCE):

	 	2006
	 
	 	 
	TENANT’S PROPORTIONATE SHARE:

	 	2.34% for the Initial Premises

3.64% for the Initial Premises and the
Additional Premises, collectively, effective
as of the Additional Premises Commencement
Date
	 
	 	 
	SECURITY DEPOSIT:

	 	$57,754.59
	 
	 	 
	ASSIGNMENT/SUBLETTING FEE:

	 	$1,000.00
	 
	 	 
	AFTER-HOURS HVAC COST:

	 	$60.00 per hour, subject to change from time
to time in accordance with Section 13.2

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

	 	 	 
	iv
	 	 
	 
	Initials

 

 

	 	 	 
	PARKING:

	 	Tenant shall be entitled to the
non-exclusive use of Tenant’s
Proportionate Share of unassigned,
non-reserved parking passes at no
charge to Tenant during the
initial Term in accordance with
the terms of this Lease, which as
of the date of this Lease is 45
parking passes for the Initial
Premises and an additional 25
parking passes for the Additional
Premises, for a total of 70
parking passes for the Premises.
Tenant shall be entitled to
convert up to 5 parking passes to
reserved covered parking passes.
(See Article 30 on Parking.)

	 
	 	 
	REAL ESTATE BROKER:

	 	CB Richard Ellis, representing
both Landlord and Tenant, to which
Landlord shall pay a commission in
connection with this Lease in
accordance with a separate
agreement

	 
	 	 
	TENANT’S SIC CODE:

	 	2834
	 
	 	 
	BUILDING BUSINESS HOURS:

	 	7:00 a.m. – 7:00 p.m., Monday
through Friday (excluding Building
holidays) and 8:00 a.m. – 2:00
p.m. Saturdays.

	AMORTIZATION RATE:

	 	N/A

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

IN WITNESS WHEREOF, Landlord and Tenant have entered into the Lease as of the Lease Reference Date
set forth above.

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 	 	 
	RREEF AMERICA REIT II CORP. FFF,	 	 	 	AVANIR PHARMACEUTICALS,
	a Maryland corporation	 	 	 	a California corporation
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	RREEF Management Company, a
Delaware corporation, its Property Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Robin Iles
	 	 	 	Name:
	 	Eric K. Brandt	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

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

	 	                                        , 2006
	 	 	 	Dated:
	 	                                         , 2006	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Keith Katkin	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Sr. Vice President, Sales and Marketing	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Dated:
	 	                                        , 2006	 	 

v

 

LEASE

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

1. USE AND RESTRICTIONS ON USE.

     1.1 The Premises are to be used solely for general office purposes. Tenant shall not do or
permit anything to be done in or about the Premises which will in any way obstruct or interfere
with the rights of other tenants or occupants of the Building or injure, annoy, or disturb them, or
allow the Premises to be used for any (in Landlord’s reasonable judgment) improper, immoral,
unlawful, or objectionable purpose, or commit any waste. Tenant shall not do, permit or suffer in,
on, or about the Premises the sale of any alcoholic liquor without the written consent of Landlord
first obtained. Tenant shall comply with all federal, state and city laws, codes, ordinances,
rules and regulations (collectively, “Regulations”) applicable to the use of the Premises and its
occupancy and shall promptly comply with all governmental orders and directions for the correction,
prevention and abatement of any violations in the Building or appurtenant land, caused or permitted
by, or resulting from the specific use by, Tenant, or in or upon, or in connection with, the
Premises, all at Tenant’s sole expense. Notwithstanding anything to the contrary set forth herein,
except to the extent properly included in Expenses, Landlord shall be responsible for the cost of
correcting any violations of Title III of the ADA with respect to the interior and exterior common
areas of the Building, at its sole cost and expense. Tenant shall not do or permit anything to be
done on or about the Premises or bring or keep anything into the Premises which will in any way
increase the rate of, invalidate or prevent the procuring of any insurance protecting against loss
or damage to the Building or any of its contents by fire or other casualty or against liability for
damage to property or injury to persons in or about the Building or any part thereof.

     1.2 Tenant shall not, and shall not direct, suffer or permit any of its agents, contractors,
employees, licensees or invitees (collectively, the “Tenant Entities”) to at any time handle, use,
manufacture, store or dispose of in or about the Premises or the Building any (collectively,
“Hazardous Materials”) flammables, explosives, radioactive materials, hazardous wastes or
materials, toxic wastes or materials, or other similar substances, petroleum products or
derivatives or any substance subject to regulation by or under any federal, state and local laws
and ordinances relating to the protection of the environment or the keeping, use or disposition of
environmentally hazardous materials, substances, or wastes, presently in effect or hereafter
adopted, all amendments to any of them, and all rules and regulations issued pursuant to any of
such laws or ordinances (collectively, “Environmental Laws”), nor shall Tenant suffer or permit any
Hazardous Materials to be used in any manner not fully in compliance with all Environmental Laws,
in the Premises or the Building and appurtenant land or allow the environment to become
contaminated with any Hazardous Materials. Notwithstanding the foregoing, Tenant may handle,
store, use or dispose of products containing small quantities of Hazardous Materials (such as
aerosol cans containing insecticides, toner for copiers, paints, paint remover and the like) to the
extent customary and necessary for the use of the Premises for general office purposes; provided
that Tenant shall always handle, store, use, and dispose of any such Hazardous Materials in a safe
and lawful manner and never allow such Hazardous Materials to contaminate the Premises, Building
and appurtenant land or the environment. Tenant shall protect, defend, indemnify and hold each and
all of the Landlord Entities (as defined in Article 31) harmless from and against any and all loss,
claims, liability or costs (including court costs and reasonable attorney’s fees) incurred by
reason of any actual or asserted failure of Tenant to fully comply with all applicable
Environmental Laws, or the presence, handling, use or disposition in or from the Premises of any
Hazardous Materials by Tenant or any Tenant Entity (even though permissible under all applicable
Environmental Laws or the provisions of this Lease), or by reason of any actual or asserted failure
of Tenant to keep, observe, or perform any provision of this Section 1.2. As of the date hereof,
Landlord has not received written notice from any governmental agencies that the Building is in
violation of any Environmental Laws.

     1.3 Tenant and the Tenant Entities will be entitled to the non-exclusive use of the common
areas of the Building as they exist from time to time during the Term, including the parking
facilities, subject to Landlord’s reasonable rules and regulations adopted from time to time
regarding such use, which rules and regulations shall be generally applicable to all users of the
parking facilities. However, in no event will Tenant or the Tenant Entities park more vehicles in
the parking facilities than Tenant’s Proportionate Share of the total parking spaces available for
common use. The foregoing shall not be deemed to provide Tenant with an exclusive right to any
parking spaces or any guaranty of the availability of any particular parking spaces or any specific
number of parking spaces (except as specifically set forth in the Reference Pages under “Parking”.

1

 

2. TERM.

     2.1 The Term of this Lease for the Initial Premises, subject to Tenant Delays (as defined
below in Section 2.2), shall begin on the date that Landlord shall tender possession of the Initial
Premises to Tenant with the Initial Premises Alterations (as defined in Exhibit B to this
Lease) Substantially Complete (as defined below in this Section 2.1) (such date is the “Initial
Premises Commencement Date”), and shall terminate on the date as shown on the Reference Pages
(“Termination Date”), unless sooner terminated by the provisions of this Lease. The Term of this
Lease for the Additional Premises, subject to Tenant Delays, shall begin on the date that Landlord
shall tender possession of the Additional Premises to Tenant with the Additional Premises
Alterations Substantially Complete (the “Additional Premises Commencement Date”), and shall
terminate on the Termination Date, unless sooner terminated by the provisions of this Lease. The
Initial Premises Commencement Date shall be the “Commencement Date” as used in this Lease, except
that with respect to obligations that are specific to the Additional Premises, the “Commencement
Date” shall mean the Additional Premises Commencement Date. Tenant shall deliver a punch list of
items of the Initial Premises Alterations that are not completed within thirty (30) days after
Landlord tenders possession of the Initial Premises and Landlord agrees to proceed with due
diligence to perform its obligations regarding such items and to use commercially reasonable
efforts to complete such items within thirty (30) days following receipt of such punch list.
Tenant shall deliver a punch list of items of the Additional Premises Alterations not completed
within thirty (30) days after Landlord tenders possession of the Additional Premises and Landlord
agrees to proceed with due diligence to perform its obligations regarding such items and to use
commercially reasonable efforts to complete such items within thirty (30) days following receipt of
such punch list. Tenant shall, at Landlord’s request, execute and deliver memorandum agreements
provided by Landlord in the form of Exhibit C and Exhibit C-1 attached hereto,
setting forth the Initial Premises Commencement Date, the Additional Premises Commencement Date,
Termination Date and, if necessary, a revised rent schedule. Should Tenant fail to do so within
thirty (30) days after any such Landlord’s request, the information set forth in any such
memorandum agreements provided by Landlord shall be conclusively presumed to be agreed and correct.
The Initial Premises Alterations and the Additional Premises Alterations shall each be deemed to
be “Substantially Complete” on the later of (a) date that all of the Initial Premises Alterations
or the Additional Premises Alterations, as the case may be, have been performed, in accordance with
the applicable Plans and with the exception of any punch list items of the type typically found on
architectural “punch list”, and (b) the date Landlord receives from the appropriate governmental
authorities, with respect to the Initial Alterations, all approvals necessary for the occupancy of
the Premises, if any.

     2.2 Landlord shall use commercially reasonable efforts to Substantially Complete the Initial
Premises Alterations on or before the Initial Premises Scheduled Commencement Date and the
Additional Premises Alterations on or before the Additional Premises Scheduled Commencement Date.
Tenant agrees that in the event of the inability of Landlord to so deliver possession of the
Initial Premises on the Scheduled Initial Premises Commencement Date or the Additional Premises on
the Scheduled Additional Premises Commencement Date, as the case may be, for any reason, Landlord
shall not be liable for any damage resulting from such inability, but except to the extent such
delay is the result of a Tenant Delay, Tenant shall not be liable for any rent until the time when
Landlord delivers possession of the Initial Premises to Tenant and Tenant shall not be liable for
any rent until the time when Landlord delivers possession of the Additional Premises to Tenant. No
such failure to give possession on the Scheduled Initial Premises Commencement Date or the
Scheduled Additional Premises Commencement Date, as applicable, shall affect the other obligations
of Tenant under this Lease, except that the actual Initial Premises Commencement Date and
Additional Premises Commencement Date shall be postponed until the date that Landlord delivers
possession of the Initial Premises and Additional Premises, respectively, to Tenant, except to the
extent that such delay is as a result of a Tenant Delay. For purposes of this Lease, each of the
following events shall constitute a “Tenant Delay”: (a) Tenant’s failure to agree to or deliver
plans and specifications (in particular by the due dates set forth in Exhibit B) and/or
construction cost estimates or bids; (b) Tenant’s request for materials, finishes or installations
other than Landlord’s standard except those, if any, that Landlord shall have expressly agreed to
furnish without extension of time agreed by Landlord; (c) Tenant’s change in any plans or
specifications (subject to any grace periods in Exhibit B); or, (d) performance or
completion by a party employed by Tenant (each of the foregoing, a “Tenant Delay”). If any delay
is the result of a Tenant Delay, the Initial Premises Commencement Date or the Additional Premises
Commencement Date, as the case may be, and the payment of rent under this Lease shall be the date
that Landlord could have delivered possession of the applicable Premises to Tenant absent such
Tenant Delay. Landlord shall use reasonable efforts to notify Tenant in writing, of any
circumstances of which Landlord is aware that have caused or may cause a Tenant Delay, so that
Tenant may take whatever action is appropriate to minimize or prevent such Tenant Delay.

     2.3 Subject to the terms of this Section 2.3 and provided that this Lease has been fully
executed by all parties, Tenant has execute the Early Possession Agreement attached as Exhibit
E and Tenant has delivered all prepaid rental, the Security Deposit, and insurance certificates
required hereunder, Landlord grants Tenant the right to enter the Initial Premises following
Landlord’s Substantial Completion of the Initial Premises Alterations (but in any event not more
than four (4) weeks prior to the Initial Premises Commencement Date), at Tenant’s sole risk solely
for the purpose of installing

2

 

telecommunications and data cabling, equipment, furnishings and other
personalty therein. Such possession prior to the Initial Premises Commencement Date shall be
subject to all of the terms and conditions of this Lease, except that Tenant shall not be required
to pay Monthly Installment of Rent or Tenant’s Proportionate Share of Expenses, Taxes and Insurance
Costs with respect to the period of time prior to the Initial Premises Commencement Date during
which Tenant occupies the Initial Premises solely for such purposes. However, Tenant shall be
liable for any utilities or special services provided to Tenant during such period.
Notwithstanding the foregoing, if Tenant takes possession of the Initial Premises before the
Initial Premises Commencement Date for any purpose other than as expressly provided in the
preceding sentence, such possession shall be subject to the terms and conditions of this Lease and
Tenant shall pay Monthly Installment of Rent, Tenant’s Proportionate Share of Expenses, Taxes and
Insurance Costs, and any other charges payable hereunder to Landlord for each day of possession
before the Initial Premises Commencement Date. Said early possession shall not advance the
Termination Date. Further, if Tenant takes possession of the Additional Premises before the
Additional Premises Commencement Date, such possession shall be subject to the terms and conditions
of this Lease and Tenant shall pay Monthly Installment of Rent, Tenant’s Proportionate Share of
Expenses, Taxes and Insurance Costs, and any other charges payable hereunder to Landlord for each
day of possession before the Additional Premises Commencement Date.

     2.4 Notwithstanding the foregoing, if the Initial Premises Commencement Date has not occurred
on or before the Required Completion Date (defined below), Tenant, as its sole remedy, may
terminate this Lease by giving Landlord written notice of termination on or before the earlier to
occur of: (i) 5 Business Days after the Required Completion Date; and (ii) the Initial Premises
Commencement Date. In such event, this Lease shall be deemed null and void and of no further force
and effect and Landlord shall promptly refund any prepaid rent and Security Deposit previously
advanced by Tenant under this Lease and, subject to any then existing defaults by Tenant under
Exhibit B, if any, the parties hereto shall have no further responsibilities or obligations
to each other with respect to this Lease. The “Required Completion Date” shall mean the date which
is 75 days after the later of the date this Lease is properly executed and delivered by Tenant, the
date all prepaid rental and Security Deposits required under this Lease are delivered to Landlord,
and the date the building permit for the Initial Premises Alterations has been obtained. Landlord
shall make commercially reasonable efforts to timely obtain any such building permits. Landlord
and Tenant acknowledge and agree that: (i) the determination of the Initial Premises Commencement
Date shall take into consideration the effect of any Tenant Delays; and (ii) the Required
Completion Date shall be postponed by the number of days the Initial Premises Commencement Date is
delayed due to events of Force Majeure (as defined in Article 31).

3. RENT.

     3.1 Tenant agrees to pay to Landlord the Annual Rent in effect from time to time by paying the
Monthly Installment of Rent then in effect on or before the first day of each full calendar month
during the Term, except that the first full month’s rent shall be paid upon the execution of this
Lease. The Monthly Installment of Rent in effect at any time shall be one-twelfth (1/12) of the
Annual Rent in effect at such time. Rent for any period during the Term which is less than a full
month shall be a prorated portion of the Monthly Installment of Rent based upon the number of days
in such month. Said rent shall be paid to Landlord, without deduction or offset and without notice
or demand, at the Rent Payment Address, as set forth on the Reference Pages, or to such other
person or at such other place as Landlord may from time to time designate in writing. If an Event
of Default occurs, Landlord may require by notice to Tenant that all subsequent rent payments be
made by an automatic payment from Tenant’s bank account to Landlord’s account, without cost to
Landlord. Tenant must implement such automatic payment system prior to the next scheduled rent
payment or within ten (10) days after Landlord’s notice, whichever is later. Unless specified in
this Lease to the contrary, all amounts and sums payable by Tenant to Landlord pursuant to this
Lease shall be deemed additional rent.

     3.2 Tenant recognizes that late payment of any rent or other sum due under this Lease will
result in administrative expense to Landlord, the extent of which additional expense is extremely
difficult and economically impractical to ascertain. Tenant therefore agrees that if rent or any
other sum is not paid when due and payable pursuant to this Lease, a late charge shall be imposed
in an amount equal to the greater of: (a) Fifty Dollars ($50.00), or (b) five percent (5%) of the
unpaid rent or other payment; provided that Tenant shall be entitled to a grace period of 5 days
for the first late payments of Rent in any 12 month period before such late fee shall apply. The
amount of the late charge to be paid by Tenant shall be reassessed and added to Tenant’s obligation
for each successive month until paid. The provisions of this Section 3.2 in no way relieve Tenant
of the obligation to pay rent or other payments on or before the date on which they are due, nor do
the terms of this Section 3.2 in any way affect Landlord’s remedies pursuant to Article 19 of this
Lease in the event said rent or other payment is unpaid after date due.

     3.3 Notwithstanding anything in this Lease to the contrary, so long as Tenant is not then in
default under this Lease following written notice thereof, Tenant shall be entitled to an abatement
of Monthly Installment of Rent solely with respect to the Initial Premises for the first forty-five
(45) days of the Term (the “Monthly Rent Abatement Period”), in the

3

 

amount of $999.85 per day,
which totals $44,993.03 (the “Abated Rent”). During the Monthly Rent Abatement Period, only
Monthly Installment of Rent for the Initial Premises shall be abated as set forth above, and
Tenant’s Proportionate Share of Expenses, Taxes and Insurance Costs for the Initial Premises, and
all other costs and charges specified in this Lease, shall remain as due and payable pursuant to
the provisions of this Lease, except to the extent expressly provided in Section 4.7 below.

4. RENT ADJUSTMENTS.

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

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

          4.1.2 Expenses: All costs of operation, maintenance, repair, replacement and management of
the Building (including the amount of any credits which Landlord may grant to particular tenants of
the Building in lieu of providing any standard services or paying any standard costs described in
this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted
accounting principles, including the following costs by way of illustration, but not limitation:
water and sewer charges; utility costs, including, but not limited to, the cost of heat, light,
power, steam, gas; waste disposal; the cost of janitorial services; the cost of security and alarm
services (including any central station signaling system); costs of cleaning, repairing, replacing
and maintaining the common areas, including parking and landscaping, window cleaning costs; labor
costs; costs and expenses of managing the Building including management and/or administrative fees;
air conditioning maintenance costs; elevator maintenance fees and supplies; material costs;
equipment costs including the cost of maintenance, repair and service agreements and rental and
leasing costs; purchase costs of equipment; current rental and leasing costs of items which would
be capital items if purchased; tool costs; licenses, permits and inspection fees; wages and
salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service
taxes incurred in connection therewith. In addition, Landlord shall be entitled to recover, as
additional rent (which, along with any other capital expenditures constituting Expenses, Landlord
may either include in Expenses or cause to be billed to Tenant along with Expenses and Taxes but as
a separate item), Tenant’s Proportionate Share of: (i) an allocable portion of the cost of capital
improvement items which are reasonably calculated to reduce operating expenses; (ii) the cost of
fire sprinklers and suppression systems and other life safety systems; and (iii) other capital
expenses which are required under any Regulations which were not applicable to the Building at the
time it was constructed; but the costs described in this sentence shall be amortized over the
reasonable life of such expenditures in accordance with such reasonable life and amortization
schedules as shall be determined by Landlord in accordance with generally accepted accounting
principles, with interest on the unamortized amount at one percent (1%) in excess of the Wall
Street Journal prime lending rate announced from time to time. Expenses shall not include Taxes,
Insurance Costs, depreciation or amortization of the Building or equipment in the Building except
as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing
commissions, interest expenses on long-term borrowings or advertising costs. The following items
are also excluded from Expenses and in no event shall Tenant have any obligation to perform, pay
directly or reimburse Landlord for any of the following except to the extent expressly provided
herein:

     (a) Marketing costs, including leasing commissions, attorneys’ fees in
connection with the negotiation and preparation or enforcement of letters, deal
memos, letters of intent, leases, subleases and/or assignments, space planning
costs, lease concessions, allowances, and other costs and expenses incurred in
connection with lease, sublease and/or assignment negotiations and transactions with
present or prospective tenants or other occupants of the Building.

     (b) Attorney’s fees and other expenses incurred in connection with negotiations
or disputes with prospective tenants or tenants or other occupants of the Building.

     (c) Any expenses for which Landlord has received actual reimbursement (other
than through Expenses).

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

     (e) Ground lease rental.

     (f) Interest (except as provided in this Lease for the amortization of capital
improvements and except to the extent incurred as a result of any act or omission of
Tenant).

4

 

     (g) Costs incurred by Landlord in connection with the correction of latent
defects in the original construction of the Building.

     (h) Any fines, penalties or interest resulting from the gross negligence or
willful misconduct of the Landlord or its agents or employees.

     (i) Landlord’s charitable and political contributions.

     (j) Fines, costs or penalties incurred as a result and to the extent of a
violation by Landlord or other tenants of the project of which Building is a part of
any applicable laws.

     (k) The cost or expense of any services or benefits provided generally to other
tenants in the Building and not provided or available to Tenant.

     (l) All costs of purchasing or leasing major sculptures, paintings or other
major works or objects of art (as opposed to decorations purchased or leased by
Landlord for display in the common areas of the Building).

     (m) Principal payments of mortgage and other non-operating debts of Landlord.

     (n) The cost of operating any commercial concession which is operated by
Landlord in the Building, including, without limitation, any compensation paid to
clerks, attendants or other persons operating such commercial concessions on behalf
of Landlord, but only to the extent revenues from any such commercial concessions
exceed such costs and compensation.

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

     (p) Reserves not spent by Landlord by the end of the calendar year for which
Expenses are paid.

     (q) Any cost or expense related to removal, cleaning, abatement or remediation
of Hazardous Materials existing as of the date hereof in or about the Building,
except to the extent such removal, cleaning, abatement or remediation is related to
the general repair and maintenance of the Building.

     (r) All costs associated with the operation of the business of the entity which
constitutes “Landlord” (as distinguished from the costs of operating, maintaining,
repairing and managing the Building) including, but not limited to, Landlord’s or
Landlord’s managing agent’s general corporate overhead and general administrative
expenses.

     (s) The cost of correcting existing (as of the Commencement Date) violations of
Title III of the Americans with Disabilities Act.

     (t) Rental and leasing costs of items which would be capital items if
purchased.

     (u) Actual costs or expenses incurred by Landlord during a calendar year to the
extent Landlord uses reserves to pay for such costs or expenses and such reserves
are otherwise included in Expenses for such calendar year.

     (v) Except as expressly provided in the first paragraph of this Section 4.1.2,
the cost of capital improvement items and the cost of fire sprinklers and
suppression systems and other life safety systems.

          4.1.3 Taxes: Real estate taxes and any other taxes, charges and assessments which are levied
with respect to the Building or the land appurtenant to the Building, or with respect to any
improvements, fixtures and equipment or other property of Landlord, real or personal, located in
the Building and used in connection with the operation of the Building and said land, any payments
to any ground lessor in reimbursement of tax payments made by such lessor; and all fees, expenses
and costs incurred by Landlord in investigating, protesting, contesting or in any way seeking to
reduce or avoid increase in any assessments, levies or the tax rate pertaining to any Taxes to be
paid by Landlord in any Lease Year. Taxes shall not include any corporate franchise, or estate,
inheritance or net income tax, or tax imposed upon any transfer by Landlord of its interest in this
Lease or the Building or any taxes to be paid by Tenant pursuant to Article 28.

          4.1.4 Insurance Costs: Any and all insurance charges of or relating to all insurance policies
and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any
manner to the protection, preservation, or operation of the Building or any part thereof.

5

 

     4.2 If in any Lease Year, (i) Expenses paid or incurred shall exceed Expenses paid or incurred
in the Base Year (Expenses) and/or (ii) Taxes paid or incurred by Landlord in any Lease Year shall
exceed the amount of such Taxes which became due and payable in the Base Year (Taxes), and/or (iii)
Insurance Costs paid or incurred by Landlord in any Lease Year shall exceed the amount of such
Insurance Costs which became due and payable in the Base Year (Insurance), Tenant shall pay as
additional rent for such Lease Year Tenant’s Proportionate Share of each such excess amount.

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

     4.4 Prior to the actual determination thereof for a Lease Year, Landlord may from time to time
estimate Tenant’s liability for Expenses, Insurance Costs and/or Taxes under Section 4.2, Article 6
and Article 28 for the Lease Year or portion thereof. Landlord will give Tenant written
notification of the amount of such estimate and Tenant agrees that it will pay, by increase of its
Monthly Installments of Rent due in such Lease Year, additional rent in the amount of such
estimate. Any such increased rate of Monthly Installments of Rent pursuant to this Section 4.4
shall remain in effect until further written notification to Tenant pursuant hereto.

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

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

          4.5.2 If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of
Expenses, Insurance Costs and/or Taxes for the Lease Year is more than Tenant’s liability for
Expenses, Insurance Costs and/or Taxes, then Landlord shall credit the difference against the then
next due payments to be made by Tenant under this Article 4, or, if this Lease has terminated,
refund the difference in cash. Tenant shall not be entitled to a credit by reason of actual
Expenses and/or Taxes and/or Insurance Costs in any Lease Year being less than Expenses and/or
Taxes and/or Insurance Costs in the Base Year (Expenses and/or Taxes and/or Insurance).

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

     4.7 Notwithstanding anything in this Lease to the contrary, so long as Tenant is not then in
default under this Lease following written notice thereof, Tenant shall be entitled to an abatement
of Tenant’s Proportionate Share of any Expenses, Insurance Costs and Taxes in excess of the
applicable Base Year (as described in Section 4.2 above), if any, for the period commencing on the
Initial Premises Commencement Date and ending on the day before the 12-month anniversary of the
Initial Premises Commencement Date (the “Expense Abatement Period”) (collectively, the “Abated
Expenses”). During the Expense Abatement Period, only Expenses, Insurance Costs and Taxes shall be
abated as set forth above, and Tenant’s Monthly Installment of Rent, and all other costs and
charges specified in this Lease, shall remain as due and payable pursuant to the provisions of this
Lease, except to the extent expressly provided in Section 3.3 above.

6

 

5. SECURITY DEPOSIT. Tenant shall deposit the Security Deposit with Landlord upon the execution of
this Lease. Said sum shall be held by Landlord as security for the faithful performance by Tenant
of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant and not
as an advance rental deposit or as a measure of Landlord’s damage in case of Tenant’s Event of
Default. In an Event of Default, Landlord may use any part of the Security Deposit for the payment
of any rent or any other sum in default, or for the payment of any amount which Landlord may spend
or become obligated to spend by reason of Tenant’s Event of Default, or to compensate Landlord for
any other loss or damage which Landlord may suffer by reason of Tenant’s Event of Default. If any
portion is so used, Tenant shall within ten (10) days after written demand therefor, deposit with
Landlord an amount sufficient to restore the Security Deposit to its original amount and Tenant’s
failure to do so shall be a material breach of this Lease. Except to such extent, if any, as shall
be required by law, Landlord shall not be required to keep the Security Deposit separate from its
general funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully
and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or
any balance thereof shall be returned to Tenant at such time after termination of this Lease when
Landlord shall have determined that all of Tenant’s obligations under this Lease have been
fulfilled. Notwithstanding anything to the contrary contained herein or in Article 23 hereof,
Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, or any similar
or successor Regulations or other laws now or hereinafter in effect.

6. ALTERATIONS.

     6.1 Except for those, if any, specifically provided for in Exhibit B to this Lease,
Tenant shall not make or suffer to be made any alterations, additions, or improvements, including,
but not limited to, the attachment of any fixtures or equipment in, on, or to the Premises or any
part thereof or the making of any improvements as required by Article 7, without the prior written
consent of Landlord. When applying for such consent, Tenant shall, if requested by Landlord,
furnish complete plans and specifications for such alterations, additions and improvements.
Landlord’s consent shall not be unreasonably withheld with respect to alterations which (i) are not
structural in nature, (ii) are not visible from the exterior of the Building, (iii) do not affect
or require modification of the Building’s electrical, mechanical, plumbing, HVAC or other systems,
and (iv) in aggregate do not cost more than $5.00 per rentable square foot of that portion of the
Premises affected by the alterations in question. In addition, Tenant shall have the right to
perform, with prior notice but without Landlord’s consent, any alteration, addition, or improvement
that satisfies all of the following criteria (a “Cosmetic Alteration”): (1) is of a cosmetic
nature such as painting, wallpapering, hanging pictures and installing carpeting; (2) is not
visible from the exterior of the Premises or Building; (3) will not affect the systems or structure
of the Building; (4) costs less than $25,000.00 in the aggregate during any 12-month period of the
Term of this Lease, and (5) does not require work to be performed inside the walls or above the
ceiling of the Premises. However, even though consent is not required, the performance of Cosmetic
Alterations shall be subject to all the other provisions of this Article 6.

     6.2 In the event Landlord consents to the making of any such alteration, addition or
improvement by Tenant, the same shall be made by using either Landlord’s contractor or a contractor
reasonably approved by Landlord, in either event at Tenant’s sole cost and expense. If Tenant
shall employ any contractor other than Landlord’s contractor and such other contractor or any
subcontractor of such other contractor shall employ any non-union labor or supplier, Tenant shall
be responsible for and hold Landlord harmless from any and all delays, damages and extra costs
suffered by Landlord as a result of any dispute with any labor unions concerning the wage, hours,
terms or conditions of the employment of any such labor. In any event Landlord may charge Tenant a
construction management fee not to exceed five percent (5%) of the cost of such work to cover its
overhead as it relates to such proposed work (but this fee shall apply only if Landlord performs or
contracts for the work or, at Tenant’s request, supervises the work for Tenant), plus third-party
costs actually incurred by Landlord in connection with the proposed work and the design thereof,
with all such amounts being due five (5) days after Landlord’s demand.

     6.3 All alterations, additions or improvements proposed by Tenant shall be constructed in
accordance with all Regulations, using Building standard materials where applicable, and Tenant
shall, prior to construction, provide the additional insurance required under Article 11 in such
case, and also all such assurances to Landlord as Landlord shall reasonably require to assure
payment of the costs thereof, including but not limited to, notices of non-responsibility, waivers
of lien, surety company performance bonds and funded construction escrows and to protect Landlord
and the Building and appurtenant land against any loss from any mechanic’s, materialmen’s or other
liens. Tenant shall pay in addition to any sums due pursuant to Article 4, any increase in real
estate taxes attributable to any such alteration, addition or improvement for so long, during the
Term, as such increase is ascertainable; at Landlord’s election said sums shall be paid in the same
way as sums due under Article 4. Landlord may, as a condition to its consent to any particular
alterations or improvements, require Tenant to deposit with Landlord the amount reasonably
estimated by Landlord as sufficient to cover the cost of removing such alterations or improvements
and restoring the Premises, to the extent required under Section 26.2; provided that Landlord may
require such a deposit only to the extent that the approved alterations, in Landlord’s reasonable
judgment,

7

 

are of a nature that would require removal and repair costs that are materially in excess
of the removal and repair costs associated with standard office improvements.

7. REPAIR.

     7.1 Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint
the Premises, except as specified in Exhibit B if attached to this Lease and except that
Landlord shall repair and maintain the structural portions of the Building, including the basic
plumbing, air conditioning, heating and electrical systems installed or furnished by Landlord.
However, notwithstanding the foregoing, Landlord agrees that the base Building, electrical,
heating, ventilation and air conditioning and plumbing systems located in the Premises shall be in
good working order as of the date Landlord delivers possession of the Premises to Tenant. Except
to the extent caused by the acts or omissions of Tenant or any Tenant Entities or by any
alterations or improvements performed by or on behalf of Tenant, if such systems are not in good
working order as of the date possession of the Premises is delivered to Tenant and Tenant provides
Landlord with notice of the same within thirty (30) days following the date Landlord delivers
possession of the Premises to Tenant, Landlord shall be responsible for repairing or restoring the
same. Subject to the foregoing, by taking possession of the Premises, Tenant accepts them as being
in good order, condition and repair and in the condition in which Landlord is obligated to deliver
them, except as set forth in the punch list to be delivered pursuant to Section 2.1. It is hereby
understood and agreed that no representations respecting the condition of the Premises or the
Building have been made by Landlord to Tenant, except as specifically set forth in this Lease.

     7.2 Tenant shall, at all times during the Term, keep the Premises in good condition and repair
excepting damage by fire, or other casualty, and in compliance with all applicable governmental
laws, ordinances and regulations, promptly complying with all governmental orders and directives
for the correction, prevention and abatement of any violations or nuisances in or upon, or
connected with, the Premises, all at Tenant’s sole expense.

     7.3 Landlord shall not be liable for any failure to make any repairs or to perform any
maintenance unless such failure shall persist for an unreasonable time after written notice of the
need of such repairs or maintenance is given to Landlord by Tenant.

     7.4 Except as provided in Article 22, there shall be no abatement of rent and no liability of
Landlord by reason of any injury to or interference with Tenant’s business arising from the making
of any repairs, alterations or improvements in or to any portion of the Building or the Premises or
to fixtures, appurtenances and equipment in the Building. Tenant hereby waives any and all rights
under and benefits of subsection 1 of Section 1932 and Sections 1941 and 1942 of the California
Civil Code, or any similar or successor Regulations or other laws now or hereinafter in effect.

8. LIENS. Tenant shall keep the Premises, the Building and appurtenant land and Tenant’s leasehold
interest in the Premises free from any liens arising out of any services, work or materials
performed, furnished, or contracted for by Tenant, or obligations incurred by Tenant. In the event
that Tenant fails, within twenty (20) days following the imposition of any such lien, to either
cause the same to be released of record or provide Landlord with insurance against the same issued
by a major title insurance company or such other protection against the same as Landlord shall
reasonably accept (such failure to constitute an Event of Default), Landlord shall have the right
to cause the same to be released by such means as it shall deem proper, including payment of the
claim giving rise to such lien. All such sums paid by Landlord and all expenses incurred by it in
connection therewith shall be payable to it by Tenant within ten (10) days of Landlord’s written
demand.

9. ASSIGNMENT AND SUBLETTING.

     9.1 Except as provided herein with respect to a Permitted Transfer, Tenant shall not have the
right to assign or pledge this Lease or to sublet the whole or any part of the Premises whether
voluntarily or by operation of law, or permit the use or occupancy of the Premises by anyone other
than Tenant, and shall not make, suffer or permit such assignment, subleasing or occupancy without
the prior written consent of Landlord, such consent not to be unreasonably withheld, and said
restrictions shall be binding upon any and all assignees of this Lease and subtenants of the
Premises. In the event Tenant desires to sublet, or permit such occupancy of, the Premises, or any
portion thereof, or assign this Lease, Tenant shall give written notice thereof to Landlord at
least thirty (30) days but no more than one hundred twenty (120) days prior to the proposed
commencement date of such subletting or assignment, which notice shall set forth the name of the
proposed subtenant or assignee, the relevant terms of any sublease or assignment and copies of
financial reports and other relevant financial information of the proposed subtenant or assignee.

     9.2 Notwithstanding any assignment or subletting, permitted or otherwise, Tenant shall at all
times remain directly, primarily and fully responsible and liable for the payment of the rent
specified in this Lease and for compliance with

8

 

all of its other obligations under the terms,
provisions and covenants of this Lease. Upon the occurrence of an Event of Default, if the
Premises or any part of them are then assigned or sublet, Landlord, in addition to any other
remedies provided in this Lease or provided by law, may, at its option, collect directly from such
assignee or subtenant all rents due and becoming due to Tenant under such assignment or sublease
and apply such rent against any sums due to Landlord from Tenant under this Lease, and no such
collection shall be construed to constitute a novation or release of Tenant from the further
performance of Tenant’s obligations under this Lease.

     9.3 In addition to Landlord’s right to approve of any subtenant or assignee, except in the
case of a Permitted Transfer, Landlord shall have the option, in its sole discretion, in the event
of any proposed subletting or assignment, to terminate this Lease, or in the case of a proposed
subletting of less than the entire Premises that is at least 25% of the Premises for all or
substantially all of the remaining Term, to recapture the portion of the Premises to be so sublet,
as of the date the subletting or assignment is to be effective. The option shall be exercised, if
at all, by Landlord giving Tenant written notice given by Landlord to Tenant within thirty (30)
days following Landlord’s receipt of Tenant’s written notice as required above. However, if Tenant
notifies Landlord, within five (5) business days after receipt of Landlord’s termination notice,
that Tenant is rescinding its proposed assignment or sublease, the termination notice shall be void
and this Lease shall continue in full force and effect. If this Lease shall be terminated with
respect to the entire Premises pursuant to this Section, the Term of this Lease shall end on the
date stated in Tenant’s notice as the effective date of the sublease or assignment as if that date
had been originally fixed in this Lease for the expiration of the Term. If Landlord recaptures
under this Section only a portion of the Premises, the rent to be paid from time to time during the
unexpired Term shall abate proportionately based on the proportion by which the approximate square
footage of the remaining portion of the Premises shall be less than that of the Premises as of the
date immediately prior to such recapture. Tenant shall, at Tenant’s own cost and expense,
discharge in full any outstanding commission obligation which may be due and owing as a result of
any proposed assignment or subletting, whether or not the Premises are recaptured pursuant to this
Section 9.3 and rented by Landlord to the proposed tenant or any other tenant.

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

     9.5 Notwithstanding any other provision hereof, it shall be considered reasonable for Landlord
to withhold its consent to any assignment of this Lease or sublease of any portion of the Premises
if at the time of either Tenant’s notice of the proposed assignment or sublease or the proposed
commencement date thereof, there shall exist any uncured default of Tenant, or if the proposed
assignee or sublessee is an entity: (a) with which Landlord is already in negotiation; (b) is
already an occupant of the Building unless Landlord is unable to provide the amount of space
required by such occupant; (c) is a governmental agency; (d) is incompatible with the character of
occupancy of the Building; (e) with which the payment for the sublease or assignment is determined
in whole or in part based upon its net income or profits; or (f) would subject the Premises to a
use which would: (i) involve significant increased personnel or significant wear upon the
Building; (ii) violate any exclusive right granted to another tenant of the Building; (iii) require
any addition to or modification of the Premises or the Building in order to comply with building
code or other governmental requirements; or, (iv) involve a violation of Section 1.2. Tenant
expressly agrees that for the purposes of any statutory or other requirement of reasonableness on
the part of Landlord, Landlord’s refusal to consent to any assignment or sublease for any of the
reasons described in this Section 9.5, shall be conclusively deemed to be reasonable.

     9.6 Upon any request to assign or sublet, Tenant will pay to Landlord the
Assignment/Subletting Fee plus, on demand, a sum equal to all of Landlord’s costs, including
reasonable attorney’s fees, incurred in investigating and considering any proposed or purported
assignment or pledge of this Lease or sublease of any of the Premises, regardless of whether
Landlord shall consent to, refuse consent, or determine that Landlord’s consent is not required
for, such assignment, pledge or sublease (the “Review Reimbursement”). Except as otherwise
expressly provided herein, the Review Reimbursement shall not exceed $1,000.00 (the “Cap”). If:
(a) Tenant fails to execute Landlord’s standard form of consent without any changes to this Lease,
without material changes to the consent and without material negotiation of the consent, and (b)
Landlord shall notify Tenant that the Review Reimbursement shall exceed the Cap as a result of such
changes and/or negotiation, and (c) Tenant elects to proceed with such changes and/or negotiation,
then the Cap shall not apply and Tenant

9

 

shall pay to Landlord the Assignment/Subletting Fee plus
the Review Reimbursement in full. The foregoing shall in no event be deemed to be a right of
Tenant to rescind its written notice to Landlord requesting consent to a transfer of this Lease or
a sublease of all or a portion of the Premises as provided in Section 9.1. In the event that
Tenant fails to notify Landlord of its election as provided in subsection (c) above within three
(3) business days following Landlord’s notice to Tenant of the excess described in subsection (b)
above, then Tenant shall be deemed to have elected proceed with any such changes and/or negotiation
and the Cap shall not apply. Any purported sale, assignment, mortgage, transfer of this Lease or
subletting which does not comply with the provisions of this Article 9 shall be void.

     9.7 Unless Tenant is an entity whose outstanding stock is listed on a recognized securities
exchange, or if at least fifty-one (51%) of its voting stock is owned by another entity, the voting
stock of which is so listed (in either of which case an acquisition of a controlling interest in
Tenant while Tenant is so listed shall not be a Transfer, even if such acquisition is by a
privately held entity that later causes Tenant to be removed from such securities exchange), if
Tenant is a corporation, limited liability company, partnership or trust, any transfer or transfers
of or change or changes within any twelve (12) month period in the number of the outstanding voting
shares of the corporation or limited liability company, the general partnership interests in the
partnership or the identity of the persons or entities controlling the activities of such
partnership or trust resulting in the persons or entities owning or controlling a majority of such
shares, partnership interests or activities of such partnership or trust at the beginning of such
period no longer having such ownership or control shall be regarded as equivalent to an assignment
of this Lease to the persons or entities acquiring such ownership or control and shall be subject
to all the provisions of this Article 9 to the same extent and for all intents and purposes as
though such an assignment.

     9.8 So long as Tenant is not entering into the Permitted Transfer (as defined below) for the
purpose of avoiding or otherwise circumventing the remaining terms of this Article 9, Tenant may
assign its entire interest under this Lease, without the consent of Landlord, to (a) an affiliate,
subsidiary, or parent of Tenant, or a corporation, partnership or other legal entity wholly owned
by Tenant (collectively, an “Affiliated Party”), or (b) a successor to Tenant by purchase, merger,
consolidation or reorganization, provided that all of the following conditions are satisfied (each
such transfer a “Permitted Transfer” and any such assignee or sublessee of a Permitted Transfer, a
“Permitted Transferee”): (i) Tenant is not in an Event of Default under this Lease; (ii) the
Permitted Use does not allow the Premises to be used for retail purposes; (iii) Tenant shall give
Landlord written notice at least thirty (30) days prior to the effective date of the proposed
Permitted Transfer; (iv) with respect to a proposed Permitted Transfer to an Affiliated Party,
either (I) Tenant continues to have a net worth equal to or greater than Tenant’s net worth at the
date of this Lease, or (II) in the event such transferee does not have a net worth equal to or
greater than Tenant’s net worth as of the date of the Lease, Tenant obtains and delivers to
Landlord a written guaranty from an entity (X) that is incorporated or organized in the United
States, (Y) that is not on the OFAC list, and (Z) has a net worth that is equal to greater than the
net worth of Tenant as of the date of the Lease, in a form reasonably acceptable to Landlord,
guaranteeing Tenant’s obligations under this Lease; and (v) with respect to a purchase, merger,
consolidation or reorganization or any Permitted Transfer which results in Tenant ceasing to exist
as a separate legal entity, (A) Tenant’s successor shall own all or substantially all of the assets
of Tenant, and (B) Tenant’s successor shall have a net worth which is at least equal to the greater
of Tenant’s net worth at the date of this Lease or Tenant’s net worth as of the day prior to the
proposed purchase, merger, consolidation or reorganization, or shall obtain and deliver to Landlord
a written guaranty from an entity (x) that incorporated or organized in the United States, (y) that
is not on the OFAC list, and (z) has a net worth that is equal to greater than the net worth of
Tenant as of the date of the Lease, in a form reasonably acceptable to Landlord, guaranteeing
Tenant’s obligations under this Lease. Tenant’s notice to Landlord shall include information and
documentation showing that each of the above conditions has been satisfied. If requested by
Landlord, Tenant’s successor shall sign a commercially reasonable form of assumption agreement. As
used herein, (1) “parent” shall mean a company which owns a majority of Tenant’s voting equity; (2)
“subsidiary” shall mean an entity wholly owned by Tenant or at least fifty-one percent (51%) of
whose voting equity is owned by Tenant; and (3) “affiliate” shall mean an entity controlled,
controlling or under common control with Tenant.

10. INDEMNIFICATION.

     10.1 None of the Landlord Entities shall be liable and Tenant hereby waives all claims against
them for any damage to any property or any injury to any person in or about the Premises or the
Building by or from any cause whatsoever (including without limiting the foregoing, rain or water
leakage of any character from the roof, windows, walls, basement, pipes, plumbing works or
appliances, the Building not being in good condition or repair, gas, fire, oil, electricity or
theft), except to the extent caused by or arising from the gross negligence or willful misconduct
of Landlord or its agents, employees or contractors. Tenant shall protect, indemnify and hold the
Landlord Entities harmless from and against any and all loss, claims, liability or costs (including
court costs and attorney’s fees) incurred by reason of (a) any damage to any property (including
but not limited to property of any Landlord Entity) or any injury (including but not limited to
death) to any person occurring in, on or about the Premises or the Building to the extent that such
injury or damage shall be caused by or arise from any actual or alleged act, neglect, fault, or
omission by or of Tenant or any Tenant Entity to meet any standards

10

 

imposed by any duty with
respect to the injury or damage; (b) the conduct or management of any work or thing whatsoever done
by the Tenant in or about the Premises or from transactions of the Tenant concerning the Premises;
(c) Tenant’s failure to comply with any and all Regulations applicable to the condition or use of
the Premises or its occupancy; or (d) any breach or default on the part of Tenant in the
performance of any covenant or agreement on the part of the Tenant to be performed pursuant to this
Lease. The provisions of this Article shall survive the termination of this Lease with respect to
any claims or liability accruing prior to such termination.

     10.2 Landlord shall protect, indemnify and hold Tenant harmless from and against any and all
loss, claims, liability or costs (including court costs and attorney’s fees) incurred by reason of
any damage to any property (including but not limited to property of Tenant) or any injury
(including but not limited to death) to any person occurring in, on or about the common areas of
the Building to the extent that such injury or damage shall be caused by or arise from the gross
negligence or willful misconduct of Landlord or any of Landlord’s agents or employees.

11. INSURANCE.

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

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

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

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

13. SERVICES AND UTILITIES.

     13.1 Provided there is no Event of Default under this Lease, and subject to the other
provisions of this Lease, Landlord agrees to furnish to the Premises during Building Business Hours
(specified on the Reference Pages) on generally recognized business days (but exclusive in any
event of Sundays and national and local legal holidays), the following services and utilities
subject to the rules and regulations of the Building prescribed from time to time: (a) water
suitable for normal office use of the Premises (including for use outside of Building Business
Hours for occasional after-hours use); (b) heat and air conditioning required in Landlord’s
judgment for the use and occupation of the Premises during Building Business Hours; (c) cleaning
and janitorial service; (d) elevator service by nonattended automatic elevators, if applicable;
and, (e) equipment to bring to the Premises electricity for lighting, convenience outlets and other
normal office use (including

11

 

for use outside of Building Business Hours for occasional after-hours
use). To the extent that Tenant is not billed directly by a public utility, Tenant shall pay,
within ten (10) days of Landlord’s demand, for all electricity used by Tenant in the Premises. The
charge shall be at the rates charged for such services by the local public utility. Alternatively,
Landlord may elect to include electricity costs in Expenses. In the absence of Landlord’s gross
negligence or willful misconduct, Landlord shall not be liable for, and Tenant shall not be
entitled to, any abatement or reduction of rental by reason of Landlord’s failure to furnish any of
the foregoing, unless such failure shall persist for an unreasonable time after written notice of
such failure is given to Landlord by Tenant and provided further that Landlord shall not be liable
when such failure is caused by accident, breakage, repairs, labor disputes of any character, energy
usage restrictions or by any other cause, similar or dissimilar, beyond the reasonable control of
Landlord. Landlord shall use reasonable efforts to remedy any interruption in the furnishing of
services and utilities.

     13.2 Should Tenant require any additional work or service, as described above, including
services furnished outside ordinary business hours specified above (other than electricity and
water for typical office use for occasional use outside of Building Business Hours), Landlord may,
on terms to be agreed, upon reasonable advance notice by Tenant, furnish such additional service
and Tenant agrees to pay Landlord such charges as may be agreed upon, including any tax imposed
thereon, but in no event at a charge less than Landlord’s actual cost plus overhead for such
additional service and, where appropriate, a reasonable allowance for depreciation of any systems
being used to provide such service. The current charge for after-hours HVAC service, which is
subject to change at any time, is specified on the Reference Pages; provided that any increases in
such charge for after-hours HVAC service shall be limited to increases in Landlord’s actual,
reasonable costs of supplying the after-hours HVAC services, including reasonable administration
fees.

     13.3 Wherever heat-generating machines or equipment (other than standard office equipment such
as printers and copy machines) are used by Tenant in the Premises which affect the temperature
otherwise maintained by the air conditioning system or Tenant allows occupancy of the Premises by
more persons than the heating and air conditioning system is designed to accommodate, in either
event whether with or without Landlord’s approval, Landlord reserves the right to install
supplementary heating and/or air conditioning units in or for the benefit of the Premises and the
cost thereof, including the cost of installation and the cost of operations and maintenance, shall
be paid by Tenant to Landlord within five (5) days of Landlord’s demand.

     13.4 Tenant will not, without the written consent of Landlord, use any apparatus or device in
the Premises, including but not limited to, electronic data processing machines and machines using
current in excess of 2000 watts and/or 20 amps or 120 volts, which will in any way increase the
amount of electricity or water usually furnished or supplied for use of the Premises for normal
office use, nor connect with electric current, except through existing electrical outlets in the
Premises, or water pipes, any apparatus or device for the purposes of using electrical current or
water. If Tenant shall require water or electric current in excess of that usually furnished or
supplied for use of the Premises as normal office use, Tenant shall procure the prior written
consent of Landlord for the use thereof, which Landlord may refuse, and if Landlord does consent,
Landlord may cause a water meter or electric current meter to be installed so as to measure the
amount of such excess water and electric current. The cost of any such meters shall be paid for by
Tenant. Tenant agrees to pay to Landlord within five (5) days of Landlord’s demand , the cost of
all such excess water and electric current consumed (as shown by said meters, if any, or, if none,
as reasonably estimated by Landlord) at the rates charged for such services by the local public
utility or agency, as the case may be, furnishing the same, plus any additional expense incurred in
keeping account of the water and electric current so consumed.

     13.5 Tenant will not, without the written consent of Landlord, contract with a utility
provider to service the Premises with any utility, including, but not limited to,
telecommunications, electricity, water, sewer or gas, which is not previously providing such
service to other tenants in the Building. Subject to Landlord’s reasonable rules and regulations
adopted from time to time regarding such use, which rules and regulations shall be generally
applicable to all occupants of the Building, and the provisions of Articles 6 and 26, Tenant shall
be entitled to the use of wiring (“Communications Wiring”) from the existing telecommunications
nexus in the Building to the Premises, sufficient for normal general office use of the Premises.
Tenant shall not install any additional Communications Wiring, nor remove any Communications
Wiring, without in each instance obtaining the prior written consent of Landlord, which consent may
be withheld in Landlord’s sole and absolute discretion. Landlord’s shall in no event be liable for
disruption in any service obtained by Tenant pursuant to this paragraph.

     13.6 Tenant shall have access to the Building for Tenant and its employees 24 hours per day/7
days per week, subject to the terms of this Lease and such security or monitoring systems as
Landlord may reasonably impose, including, without limitation, sign-in procedures and/or
presentation of identification cards to the extent applicable.

12

 

14. HOLDING OVER. Tenant shall pay Landlord for each day Tenant retains possession of the Premises
or part of them after termination of this Lease by lapse of time or otherwise at the rate
(“Holdover Rate”) which shall be One Hundred Fifty Percent (150%) of the greater of (a) the amount
of the Annual Rent for the last period prior to the date of such termination plus Tenant’s
Proportionate Share of Expenses, Taxes and Insurance Costs under Article 4; and (b) the then market
rental value of the Premises as determined by Landlord assuming a new lease of the Premises of the
then usual duration and other terms, in either case, prorated on a daily basis, and also pay all
damages sustained by Landlord by reason of such retention. If Landlord gives notice to Tenant of
Landlord’s election to such effect, such holding over shall constitute renewal of this Lease for a
period from month to month or one (1) year, whichever shall be specified in such notice, in either
case at the Holdover Rate, but if the Landlord does not so elect, no such renewal shall result
notwithstanding acceptance by Landlord of any sums due hereunder after such termination; and
instead, a tenancy at sufferance at the Holdover Rate shall be deemed to have been created. In any
event, no provision of this Article 14 shall be deemed to waive Landlord’s right of reentry or any
other right under this Lease or at law.

15. SUBORDINATION. Without the necessity of any additional document being executed by Tenant for
the purpose of effecting a subordination, this Lease shall be subject and subordinate at all times
to ground or underlying leases and to the lien of any mortgages or deeds of trust now or hereafter
placed on, against or affecting the Building, Landlord’s interest or estate in the Building, or any
ground or underlying lease; provided, however, that if the lessor, mortgagee, trustee, or holder of
any such mortgage or deed of trust elects to have Tenant’s interest in this Lease be superior to
any such instrument, then, by notice to Tenant, this Lease shall be deemed superior, whether this
Lease was executed before or after said instrument. Notwithstanding the foregoing, Tenant
covenants and agrees to execute and deliver within ten (10) days of Landlord’s request such further
instruments evidencing such subordination or superiority of this Lease as may be required by
Landlord. Notwithstanding the foregoing, upon written request by Tenant, Landlord will use
reasonable efforts to obtain a non-disturbance, subordination and attornment agreement from
Landlord’s then current mortgagee on such mortgagee’s then current standard form of agreement.
“Reasonable efforts” of Landlord shall not require Landlord to incur any cost, expense or liability
to obtain such agreement, it being agreed that Tenant shall be responsible for any fee or review
costs charged by such mortgagee. Landlord’s failure to obtain a non-disturbance, subordination and
attornment agreement for Tenant shall have no effect on the rights, obligations and liabilities of
Landlord and Tenant or be considered to be a default by Landlord hereunder.

16. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with all the rules and
regulations as set forth in Exhibit D to this Lease and all reasonable and
non-discriminatory modifications of and additions to them from time to time put into effect by
Landlord. Landlord shall not be responsible to Tenant for the non-performance by any other tenant
or occupant of the Building of any such rules and regulations.

17. REENTRY BY LANDLORD.

     17.1 Landlord reserves and shall at all times have the right to re-enter the Premises to
inspect the same, to supply janitor service and any other service to be provided by Landlord to
Tenant under this Lease, to show said Premises to prospective purchasers, mortgagees or tenants,
and to alter, improve or repair the Premises and any portion of the Building, without abatement of
rent, and may for that purpose erect, use and maintain scaffolding, pipes, conduits and other
necessary structures and open any wall, ceiling or floor in and through the Building and Premises
where reasonably required by the character of the work to be performed, provided entrance to the
Premises shall not be blocked thereby, and further provided that the business or operations of
Tenant shall not be interfered with unreasonably. Notwithstanding the foregoing, except (i) to the
extent requested by Tenant, (ii) in connection with scheduled maintenance programs, and/or (iii) in
the event of an emergency, Landlord shall provide to Tenant reasonable prior notice (either written
or oral) before Landlord enters the Premises to perform any repairs therein. Landlord shall have
the right at any time to change the arrangement and/or locations of entrances, or passageways,
doors and doorways, and corridors, windows, elevators, stairs, toilets or other public parts of the
Building and to change the name, number or designation by which the Building is commonly known (in
which event Landlord shall reimburse Tenant for replacement of a one month supply of stationary and
a reasonable supply of business cards and advertising materials) provided the changes do not
materially affect Tenant’s ability to use the Premises for the permitted use set forth in the
Reference Pages or unreasonably interfere with Tenant’s access to the Premises. In the event that
Landlord damages any portion of any wall or wall covering, ceiling, or floor or floor covering
within the Premises, Landlord shall repair or replace the damaged portion to match the original as
nearly as commercially reasonable but shall not be required to repair or replace more than the
portion actually damaged. Tenant hereby waives any claim for damages for any injury or
inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment
of the Premises, and any other loss occasioned by any action of Landlord authorized by this Article
17. Notwithstanding the foregoing, except in emergency situations as determined by Landlord,
Landlord shall exercise commercially reasonable efforts to perform any entry into the Premises that
occurs during normal business hours in a manner that is reasonably designed to minimize
interference and disruption with the operation of Tenant’s business in the Premises.

13

 

     17.2 For each of the aforesaid purposes, Landlord shall at all times have and retain a key
with which to unlock all of the doors in the Premises, excluding Tenant’s vaults and safes or
special security areas (designated in advance), and Landlord shall have the right to use any and
all means which Landlord may deem proper to open said doors in an emergency to obtain entry to any
portion of the Premises. As to any portion to which access cannot be had by means of a key or keys
in Landlord’s possession, Landlord is authorized to gain access by such means as Landlord shall
elect and the cost of repairing any damage occurring in doing so shall be borne by Tenant and paid
to Landlord within five (5) days of Landlord’s demand.

18. DEFAULT.

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

          18.1.1 Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord
under this Lease, whether such sum be any installment of the rent reserved by this Lease, any other
amount treated as additional rent under this Lease, or any other payment or reimbursement to
Landlord required by this Lease, whether or not treated as additional rent under this Lease, and
such failure shall continue for a period of five (5) days after written notice that such payment
was not made when due, but if any such notice shall be given, for the twelve (12) month period
commencing with the date of such notice, the failure to pay within five (5) days after due any
additional sum of money becoming due to be paid to Landlord under this Lease during such period
shall be an Event of Default, without notice. The notice required pursuant to this Section 18.1.1
shall replace rather than supplement any statutory notice required under California Code of Civil
Procedure Section 1161 or any similar or successor statute.

          18.1.2 Tenant shall fail to comply with any term, provision or covenant of this Lease which is
not provided for in another Section of this Article and shall not cure such failure within twenty
(20) days (forthwith, if the failure involves a hazardous condition) after written notice of such
failure to Tenant provided, however, that such failure shall not be an Event of Default if such
failure could not reasonably be cured during such twenty (20) day period, Tenant has commenced the
cure within such twenty (20) day period and thereafter is diligently pursuing such cure to
completion, but the total aggregate cure period shall not exceed ninety (90) days.

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

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

          18.1.5 A court of competent jurisdiction shall enter an order, judgment or decree adjudicating
Tenant bankrupt, or appointing a receiver of Tenant, or of the whole or any substantial part of its
property, without the consent of Tenant, or approving a petition filed against Tenant seeking
reorganization or arrangement of Tenant under the bankruptcy laws of the United States, as now in
effect or hereafter amended, or any state thereof, and such order, judgment or decree shall not be
vacated or set aside or stayed within sixty (60) days from the date of entry thereof.

19. REMEDIES.

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

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

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

14

 

               19.1.1.2 The Worth at the Time of Award of the amount by which the unpaid rent which would
have been earned after termination until the time of award exceeds the amount of such rent loss
that Tenant affirmatively proves could have been reasonably avoided;

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

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

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

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

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

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

     19.2 The subsequent acceptance of rent hereunder by Landlord shall not be deemed to be a
waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other
than the failure of Tenant to pay the particular rent so accepted, regardless of Landlord’s
knowledge of such preceding breach at the time of acceptance of such rent. No waiver by Landlord
of any breach hereof shall be effective unless such waiver is in writing and signed by Landlord.

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

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

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

     19.6 If more than one (1) Event of Default occurs during the Term or any renewal thereof,
Tenant’s renewal options, expansion options, purchase options and rights of first offer and/or
refusal, if any are provided for in this Lease, shall be null and void.

15

 

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

     19.8 Upon the occurrence of an Event of Default, Landlord may (but shall not be obligated to)
cure such Event of Default at Tenant’s sole expense. Without limiting the generality of the
foregoing, Landlord may, at Landlord’s option, enter into and upon the Premises if Landlord
determines in its reasonable discretion that Tenant is not acting within a commercially reasonable
time to maintain, repair or replace anything for which Tenant is responsible under this Lease or to
otherwise effect compliance with its obligations under this Lease and correct the same, without
being deemed in any manner guilty of trespass, eviction or forcible entry and detainer and without
incurring any liability for any damage or interruption of Tenant’s business resulting therefrom and
Tenant agrees to reimburse Landlord within ten (10) days of Landlord’s demand as additional rent,
for any expenses which Landlord may incur in thus effecting compliance with Tenant’s obligations
under this Lease, plus interest from the date of expenditure by Landlord at the Wall Street Journal
prime rate.

20. TENANT’S BANKRUPTCY OR INSOLVENCY.

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

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

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

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

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

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

21. QUIET ENJOYMENT. Landlord represents and warrants that it has full right and authority to
enter into this Lease and that Tenant, while paying the rental and performing its other covenants
and agreements contained in this Lease, shall peaceably and quietly have, hold and enjoy the
Premises for the Term without hindrance or molestation from Landlord subject to the terms and
provisions of this Lease. Landlord shall not be liable for any interference or disturbance by
other

16

 

tenants or third persons, nor shall Tenant be released from any of the obligations of this
Lease because of such interference or disturbance. Landlord shall use commercially reasonable
efforts to end or minimize interference or disturbance by other tenants or third persons after
Tenant has requested Landlord to do so in writing; provided however, that Landlord shall not be
liable for any interference or disturbance by other tenants or third persons, nor shall Tenant be
released from any of the obligations of this Lease because of such interference or disturbance.

22. CASUALTY.

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

     22.2 If such repairs cannot, in Landlord’s reasonable estimation, be made within one hundred
eighty (180) days, Landlord and Tenant shall each have the option of giving the other, at any time
within ninety (90) days after such damage, notice terminating this Lease as of the date of such
damage. In the event of the giving of such notice, this Lease shall expire and all interest of the
Tenant in the Premises shall terminate as of the date of such damage as if such date had been
originally fixed in this Lease for the expiration of the Term. In the event that neither Landlord
nor Tenant exercises its option to terminate this Lease, then Landlord shall repair or restore such
damage, this Lease continuing in full force and effect, and the rent hereunder shall be
proportionately abated as provided in Section 22.1.

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

     22.4 In the event that Landlord should fail to complete such repairs and material restoration
within sixty (60) days after the date estimated by Landlord therefor as extended by this Section
22.4, Tenant may at its option and as its sole remedy terminate this Lease by delivering written
notice to Landlord, within fifteen (15) days after the expiration of said period of time, whereupon
this Lease shall end on the date of such notice or such later date fixed in such notice as if the
date of such notice was the date originally fixed in this Lease for the expiration of the Term;
provided, however, that if construction is delayed because of changes, deletions or additions in
construction requested by Tenant, strikes, lockouts, casualties, Acts of God, war, material or
labor shortages, government regulation or control or other causes beyond the reasonable control of
Landlord, the period for restoration, repair or rebuilding shall be extended for the amount of time
Landlord is so delayed.

     22.5 Notwithstanding anything to the contrary contained in this Article: (a) Landlord shall
not have any obligation whatsoever to repair, reconstruct, or restore the Premises when the damages
resulting from any casualty covered by the provisions of this Article 22 occur during the last
twelve (12) months of the Term or any extension thereof, but if Landlord determines not to repair
such damages Landlord shall notify Tenant and if such damages shall render any material portion of
the Premises untenantable Tenant shall have the right to terminate this Lease by notice to Landlord
within fifteen (15) days after receipt of Landlord’s notice; and (b) in the event the holder of any
indebtedness secured by a mortgage or deed of trust covering the Premises or Building requires that
any insurance proceeds be applied to such indebtedness, then Landlord shall have the right to
terminate this Lease by delivering written notice of termination to Tenant within fifteen (15) days
after such requirement is made by any such holder, whereupon this Lease shall end on the date of
such damage as if the date of such damage were the date originally fixed in this Lease for the
expiration of the Term.

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

17

 

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

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

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

25. ESTOPPEL CERTIFICATES. Within ten (10) days following any written request which Landlord may
make from time to time, Tenant shall execute and deliver to Landlord or mortgagee or prospective
mortgagee a sworn statement certifying: (a) the date of commencement of this Lease; (b) the fact
that this Lease is unmodified and in full force and effect (or, if there have been modifications to
this Lease, that this Lease is in full force and effect, as modified, and stating the date and
nature of such modifications); (c) the date to which the rent and other sums payable under this
Lease has been paid; (d) the fact that there are no current defaults under this Lease by either
Landlord or Tenant except as specified in Tenant’s statement; and (e) such other matters as may be
reasonably requested by Landlord. Landlord and Tenant intend that any statement delivered pursuant
to this Article 25 may be relied upon by any mortgagee, beneficiary or purchaser. Tenant
irrevocably agrees that if Tenant fails to execute and deliver such certificate within such ten
(10) day period Landlord or Landlord’s beneficiary or agent may execute and deliver such
certificate on Tenant’s behalf, and that such certificate shall be fully binding on Tenant.
Landlord shall, within ten (10) business days after receipt of a written request from Tenant,
execute and deliver a commercially reasonable estoppel certificate to Tenant’s lender. Such
estoppel certificate shall provide a certification solely as to (i) the date of commencement of
this Lease, (ii) the fact that this Lease is unmodified and in full force and effect (or, if there
have been modifications to this Lease, that this Lease is in full force and effect, as modified,
and stating the date and nature of such modifications); (iii) the date to which the rent payable
under this Lease have been paid; (iv) that, to the best of Landlord’s actual knowledge, there are
no current defaults under this Lease by Tenant except as specified in Landlord’s statement.

26. SURRENDER OF PREMISES.

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

18

 

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

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

27. NOTICES. Any notice or document required or permitted to be delivered under this Lease shall
be addressed to the intended recipient, by fully prepaid registered or certified United States Mail
return receipt requested, or by reputable independent contract delivery service furnishing a
written record of attempted or actual delivery, and shall be deemed to be delivered when tendered
for delivery to the addressee at its address set forth on the Reference Pages, or at such other
address as it has then last specified by written notice delivered in accordance with this Article
27, or if to Tenant at either its aforesaid address or its last known registered office or home of
a general partner or individual owner, whether or not actually accepted or received by the
addressee. Any such notice or document may also be personally delivered if a receipt is signed by
and received from, the individual, if any, named in Tenant’s Notice Address.

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

29. RELOCATION OF TENANT. [Intentionally Omitted]

19

 

30. PARKING.

     30.1 During the initial Term of this Lease, Tenant agrees to lease from Landlord and Landlord
agrees to lease to Tenant, the number and type of parking passes as set forth on the Reference Page
of this Lease. This right to park in the Building’s parking facilities (the “Parking Facility”)
shall be on an unreserved, nonexclusive, first come, first served basis, for passenger-size
automobiles and is subject to the following terms and conditions:

          30.1.1 Tenant shall pay to Landlord, or Landlord’s designated parking operator, the Building’s
prevailing monthly parking charges, without deduction or offset, on the first day of each month
during the Term of this Lease; provided that during the initial Term of this Lease there shall be
no charge for number and type of parking passes as set forth on the Reference Page of this Lease.
Landlord will notify Tenant upon not less than thirty (30) days’ notice of any increases in the
monthly parking charges prior to billing Tenant any increases. No deductions from the monthly
charge shall be made for days on which the Parking Facility is not used by Tenant.

          30.1.2 Tenant shall at all times abide by and shall cause each of Tenant’s employees, agents,
customers, visitors, invitees, licensees, contractors, assignees and subtenants (collectively,
“Tenant’s Parties”) to abide by any rules and regulations (“Rules”) for use of the Parking Facility
that Landlord or Landlord’s garage operator reasonably establishes from time to time, which Rules
shall be generally applicable to all users of the Parking Facility, and otherwise agrees to use the
Parking Facility in a safe and lawful manner. Landlord reserves the right to adopt, modify and
enforce the Rules governing the use of the Parking Facility from time to time including any
key-card, sticker or other identification or entrance system and hours of operation. Landlord may
refuse to permit any person who violates such Rules to park in the Parking Facility, and any
violation of the Rules shall subject the car to removal from the Parking Facility.

          30.1.3 Unless specified to the contrary above, the parking spaces hereunder shall be provided
on a non-designated “first-come, first-served” basis. Landlord reserves the right to assign
specific spaces, and to reserve spaces for visitors, small cars, disabled persons or for other
tenants or guests, and Tenant shall not park and shall not allow Tenant’s Parties to park in any
such assigned or reserved spaces. Tenant may validate visitor parking by such method as Landlord
may approve, at the validation rate from time to time generally applicable to visitor parking.
Tenant acknowledges that the Parking Facility may be closed entirely or in part in order to make
repairs or perform maintenance services, or to alter, modify, re-stripe or renovate the Parking
Facility, or if required by casualty, strike, condemnation, act of God, governmental law or
requirement or other reason beyond the operator’s reasonable control. Notwithstanding the
foregoing, Landlord shall use commercially reasonable efforts to perform any repairs, renovations
or re-striping of the Parking Facility in a manner which will require closure of only those
portions of the Parking Facility affected by such repairs, renovations or re-striping and not the
closure of the entire Parking Facility.

          30.1.4 Tenant acknowledges that to the fullest extent permitted by law, Landlord shall have no
liability for any damage to property or other items located in the parking areas of the Building
(including without limitation, any loss or damage to tenant’s automobile or the contents thereof
due to theft, vandalism or accident), nor for any personal injuries or death arising out of the use
of the Parking Facility by Tenant or any Tenant’s Parties, whether or not such loss or damage
results from Landlord’s active negligence or negligent omission. The limitation on Landlord’s
liability under the preceding sentence shall not apply however to loss or damage arising directly
from Landlord’s willful misconduct. Without limiting the foregoing, if Landlord arranges for the
parking areas to be operated by an independent contractor not affiliated with Landlord, Tenant
acknowledges that Landlord shall have no liability for claims arising through acts or omissions of
such independent contractor. Tenant and Tenant’s Parties each hereby voluntarily releases,
discharges, waives and relinquishes any and all actions or causes of action for personal injury or
property damage occurring to Tenant or any of Tenant’s Parties arising as a result of parking in
the Parking Facility, or any activities incidental thereto, wherever or however the same may occur,
and further agrees that Tenant will not prosecute any claim for personal injury or property damage
against Landlord or any of its officers, agents, servants or employees for any said causes of
action and in all events, Tenant agrees to look first to its insurance carrier and to require that
Tenant’s Parties look first to their respective insurance carriers for payment of any losses
sustained in connection with any use of the Parking Facility. Tenant hereby waives on behalf of
its insurance carriers all rights of subrogation against Landlord or any Landlord Entities.

          30.1.5 Tenant’s right to park as described in this Article and this Lease is exclusive to
Tenant and may not be assigned or transferred except in connection with an assignment or sublease
permitted under this Lease.

          30.1.6 In the event any surcharge or regulatory fee is at any time imposed by any governmental
authority with reference to parking, Tenant shall (commencing after two (2) weeks’ notice to
Tenant) pay, per parking pass, such surcharge or regulatory fee to Landlord in advance on the first
day of each calendar month
concurrently with the month

20

 

installment of rent due under this Lease.
Landlord will enforce any surcharge or fee in an equitable manner amongst the Building tenants.

     30.2 If Tenant violates any of the terms and conditions of this Article, the operator of the
Parking Facility shall have the right to remove from the Parking Facility any vehicles hereunder
which shall have been involved or shall have been owned or driven by parties involved in causing
such violation, without liability therefor whatsoever. In addition, Landlord shall have the right
to cancel Tenant’s right to use the Parking Facility pursuant to this Article upon ten (10) days’
written notice, unless within such ten (10) day period, Tenant cures such default. Such
cancellation right shall be cumulative and in addition to any other rights or remedies available to
Landlord at law or equity, or provided under this Lease.

31. DEFINED TERMS AND HEADINGS. The Article headings shown in this Lease are for convenience of
reference and shall in no way define, increase, limit or describe the scope or intent of any
provision of this Lease. Any indemnification or insurance of Landlord shall apply to and inure to
the benefit of all the following “Landlord Entities”, being Landlord, Landlord’s investment
manager, and the trustees, boards of directors, officers, general partners, beneficiaries,
stockholders, employees and agents of each of them. Any option granted to Landlord shall also
include or be exercisable by Landlord’s trustee, beneficiary, agents and employees, as the case may
be. In any case where this Lease is signed by more than one person, the obligations under this
Lease shall be joint and several. The terms “Tenant” and “Landlord” or any pronoun used in place
thereof shall indicate and include the masculine or feminine, the singular or plural number,
individuals, firms or corporations, and their and each of their respective successors, executors,
administrators and permitted assigns, according to the context hereof. The term “rentable area”
shall mean the rentable area of the Premises or the Building as calculated by the Landlord on the
basis of the plans and specifications of the Building including a proportionate share of any common
areas. Tenant hereby accepts and agrees to be bound by the figures for the rentable square footage
of the Premises and Tenant’s Proportionate Share shown on the Reference Pages; however, Landlord
may adjust either or both figures if there is manifest error, addition or subtraction to the
Building or any business park or complex of which the Building is a part, remeasurement or other
circumstance reasonably justifying adjustment. The term “Building” refers to the structure in
which the Premises are located and the common areas (parking lots, sidewalks, landscaping, etc.)
appurtenant thereto. If the Building is part of a larger complex of structures, the term
“Building” may include the entire complex, where appropriate (such as shared Expenses, Insurance
Costs or Taxes) and subject to Landlord’s reasonable discretion. Whenever a period of time is
prescribed for the taking of an action by Landlord or Tenant (except the obligations of either
party to pay money to the other party, including rental, Security Deposit and other charges,
pursuant to the Lease), the period of time for the performance of such action shall be extended by
the number of days that the performance is actually delayed due to strikes, acts of God, shortages
of labor or materials, war, terrorist acts, civil disturbances and other causes beyond the
reasonable control of the performing party (“Force Majeure”).

32. TENANT’S AUTHORITY.

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

     32.2 Tenant hereby represents and warrants that neither Tenant, nor any persons or entities
holding any legal or beneficial interest whatsoever in Tenant, are (i) the target of any sanctions
program that is established by Executive Order of the President or published by the Office of
Foreign Assets Control, U.S. Department of the Treasury (“OFAC”); (ii) designated by the President
or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App. § 5, the International Emergency
Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order
13224 (September 23, 2001) or any Executive Order of the President issued pursuant to such
statutes; or (iii) named on the following list that is published by OFAC: “List of Specially
Designated Nationals and Blocked Persons.” If the foregoing representation is untrue at any time
during the Term, an Event of Default will be deemed to have occurred, without the necessity of
notice to Tenant.

33. FINANCIAL STATEMENTS AND CREDIT REPORTS. At Landlord’s request, Tenant shall deliver to
Landlord a copy, certified by an officer of Tenant as being a true and correct copy, of Tenant’s
most recent audited financial statement, or, if unaudited, certified by Tenant’s chief financial
officer as being true, complete and correct in all material respects. Tenant hereby authorizes
Landlord to obtain one or more credit reports on Tenant at any time, and shall execute such further
authorizations as Landlord may reasonably require in order to obtain a credit report. So long as
Tenant is a

21

 

publicly traded company on an “over-the-counter” market or any recognized national or
international securities exchange, the foregoing shall not apply so long as Tenant’s current public
annual report (in compliance with applicable securities laws) for such applicable year is available
to Landlord in the public domain.

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

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

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

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

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

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

40. OPTION TO RENEW.

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

          40.1.1 If Tenant elects to exercise the Renewal Option, then Tenant shall provide Landlord
with written notice no earlier than the date which is two hundred seventy (270) days prior to the
expiration of the Term of this Lease but no later than the date which is one hundred eighty (180)
days prior to the expiration of the Term of this Lease. If Tenant fails to provide such notice,
Tenant shall have no further or additional right to extend or renew the Term of this Lease.

          40.1.2 The Annual Rent and Monthly Installment in effect at the expiration of the then current
Term of this Lease shall be increased to reflect the Prevailing Market (as defined in Section
40.1.5) rate. Landlord shall advise Tenant of the new Annual Rent and Monthly Installment for the
Premises no later than thirty (30) days after receipt of Tenant’s written request therefor. Said
request shall be made no earlier than thirty (30) days prior to the first date on which Tenant may
exercise its Renewal Option under this Article 40. Said notification of the new Annual Rent may
include a provision for its escalation to provide for a change in the Prevailing Market rate
between the time of notification and the commencement of the Renewal Term. If Tenant and Landlord
are unable to agree on a mutually acceptable rental rate not later than sixty (60) days prior to
the expiration of the then current Term, then Landlord and Tenant shall each appoint a qualified
MAI appraiser doing business in the area, in turn those two independent MAI appraisers shall
appoint a third MAI appraiser and the majority shall decide upon the fair market rental for the
Premises as of the expiration of the then current Term. Landlord and Tenant shall equally share
in the expense of this appraisal except that in the event the Annual Rent and Monthly Installment
is found to be within six percent (6%) of the original rate quoted by Landlord, then Tenant shall
bear the full cost of all the appraisal process.

22

 

          40.1.3 This Renewal Option is not transferable; the parties hereto acknowledge and agree that
they intend that the aforesaid option to renew this Lease shall be “personal” to Tenant as set
forth above and that in no event will any assignee or sublessee (except pursuant to a Permitted
Transfer) have any rights to exercise the aforesaid option to renew.

          40.1.4 If the Renewal Option is validly exercised or if Tenant fails to validly exercise the
Renewal Option, Tenant shall have no further right to extend the term of this Lease.

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

41. RIGHT OF FIRST OFFER.

     41.1 Tenant shall have the on-going right of offer (the “Offer Right”) to lease any space
located in the Building (“Offer Space”), provided that said space is not already encumbered by
options of existing tenants at the Building, effective at such time as the subject Offer Space is
vacated by the prior tenant (or, if the prior tenant has confirmed in writing that tenant will not
extend or renew its lease prior to vacating the Offer Space, upon such time as Landlord receives
such written confirmation). In such event, Landlord shall give written notice to Tenant of the
availability of the subject Offer Space and the terms and conditions on which Landlord intends to
offer it to the public and Tenant shall have a period of fifteen (15) days in which to exercise
Tenant’s Offer Right to lease the entire subject Offer Space only pursuant to the terms and
conditions contained in Landlord’s notice, failing which Landlord may lease the subject Offer Space
to any third party on whatever basis Landlord desires, and Tenant shall have no further rights with
respect to such subject Offer Space. If Tenant exercises its Offer Right for the Offer Space in
accordance with the terms and conditions of this Article 41, effective as of the date Landlord
delivers the subject Offer Space (the “Delivery Date”), such Offer Space shall automatically be
included within the Premises and subject to all the terms and conditions of this Lease, except as
set forth in Landlord’s notice and as follows:

          41.1.1 Tenant’s Proportionate Share shall be recalculated, using the total square footage of
the Premises, as increased by the subject Offer Space, as the case may be.

          41.1.2 the Offer Space shall be leased on an “as is” basis and Landlord shall have no
obligation to improve the Offer Space or grant Tenant any improvement allowance thereon except as
may be provided in Landlord’s written notice of the Offer Right to Tenant.

          41.1.3 Tenant shall, prior to the beginning of the term for the subject Offer Space, as the
case may be, execute a written memorandum or amendment confirming the inclusion of the subject
Offer Space and the Monthly Installment of Rent and Annual Rent applicable thereto.

     41.2 Tenant shall have no such Offer Right with respect to the subject Offer Space, as the
case may be, and Landlord need not provide Tenant with a written notice of the same, if:

          41.2.1 There is an Event of Default under this Lease at the time that Landlord would otherwise
deliver its written notice of the subject Offer Right as described above; or

          41.2.2 the Premises, or any portion thereof, is sublet (other than pursuant to a Permitted
Transfer) at the time Landlord would otherwise deliver its written notice of the subject Offer
Right as described above; or

          41.2.3 this Lease has been assigned (other than pursuant to a Permitted Transfer) prior to the
date Landlord would otherwise deliver its written notice of the subject Offer Right as described
above; or

          41.2.4 Tenant (or a Permitted Transferee) is not occupying the Premises on the date Landlord
would otherwise deliver its written notice of the Offer Right as described above; or

23

 

          41.2.5 the subject Offer Space is not intended for the exclusive use of Tenant during the
Term; or

          41.2.6 the existing tenant in the subject Offer Space is interested in extending or renewing
its lease for such Offer Space or entering into a new lease for such Offer Space.

     41.3 If Landlord is delayed delivering possession of the subject Offer Space due to the
holdover or unlawful possession of such space by any party, Landlord shall use reasonable efforts
to obtain possession of such space, and the commencement of the term for the subject Offer Space
shall be postponed until the date Landlord delivers possession of the subject Offer Space to Tenant
free from occupancy by any party.

The rights of Tenant hereunder with respect to the Offer Space shall terminate on the earlier to
occur of: (i) the expiration of the initial Term of this Lease (or, if Tenant exercise its Renewal
Option, the expiration of the Renewal Term); (ii) with respect to any particular availability, the
date Landlord would have provided Tenant written notice of the Offer Right as described herein
above if Tenant had not been in violation of one or more of the conditions set forth in Section
41.2 above; and (iii) with respect to any particular availability, Tenant’s failure to exercise its
Offer Right within the fifteen (15) day period provided in Section 41.1 above. Notwithstanding the
foregoing, if (i) Tenant was entitled to exercise its Offer Right, but failed to exercise its right
within the fifteen (15) day period provided in paragraph 41.1 above, and (ii) within six (6) months
after the end of such fifteen (15) day period, period, Landlord proposes to lease the same Offer
Space to a third party on terms that are substantially different than those offered to Tenant. For
purposes hereof, the terms offered to a third party shall be deemed to be substantially the same as
those set forth in the Advice as long as there is no more than a ten percent (10%) reduction in the
“bottom line” cost per rentable square foot of the Offer Space to the third party when compared
with the “bottom line” cost per rentable square foot offered to Tenant, considering all of the
economic terms of the both deals, respectively, including, without limitation, the net rent, any
tax or expense escalation or other financial escalation and any financial concessions.

     41.5 Notwithstanding anything herein to the contrary, Tenant’s Offer Right is subject and
subordinate to the expansion rights (whether such rights are designated as a right of first offer,
right of first refusal, expansion option or otherwise) of any tenant of the Building existing on
the date hereof.

42. SUITE SIGNAGE. Landlord shall provide and install, at Landlord’s sole cost and expense, the
initial signage for Tenant in the Building directory and Building standard suite signage at the
entry to the Premises. Such signage shall consist of Building standard materials and shall comply
with current Building specifications.

43. EYEBROW SIGNAGE. Tenant shall have the right to have eyebrow signage located on the Enterprise
side of the Building (the “Eyebrow Signage”). The exact location of the Eyebrow Signage shall be
subject to all applicable Regulations and Landlord’s prior written approval, which approval shall
not be unreasonably withheld, provided that the location does not detract from the first-class
quality of the Building. Such right to Eyebrow Signage is personal to Tenant and is subject to the
following terms and conditions:

     43.1 Tenant shall submit plans and drawings for the Eyebrow Signage to the City of Aliso Viejo
and to any other public authorities having jurisdiction and shall obtain written approval from each
such jurisdiction prior to installation, and shall fully comply with all applicable Regulations.

     43.2 Tenant shall, at Tenant’s sole cost and expense, design, construct and install the
Eyebrow Signage.

     43.3 The Eyebrow Signage shall be subject to Landlord’s prior written approval, which approval
shall not be unreasonably withheld.

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

          43.4.1 There is an Event of Default under this Lease.

          43.4.2 Tenant occupies less than fifty percent (50%) of the Premises.

24

 

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

     43.5 Upon the expiration or earlier termination of this Lease or at such other time that
Tenant’s signage rights are terminated pursuant to the terms hereof, if Tenant fails to remove the
Eyebrow Signage and repair the Building in accordance with the terms of this Lease, Landlord shall
cause the Eyebrow Signage to be removed from the Building and the Building to be repaired and
restored to the condition which existed prior to the installation of the Eyebrow Signage
(including, if necessary, the replacement of any precast concrete panels), all at the sole cost and
expense of Tenant and otherwise in accordance with this Lease, without further notice from Landlord
notwithstanding anything to the contrary contained in this Lease. Tenant shall pay all costs and
expenses for such removal and restoration within five (5) business days following delivery of an
invoice therefor.

     43.6 The rights provided in this Article 43 are subject and subordinate to the existing rights
of RemedyTemp Inc., a California corporation (or its successor in interest at the Building)
(“RemedyTemp”), and shall be non-transferable unless otherwise agreed in writing by Landlord and by
RemedyTemp, each in its sole discretion. Notwithstanding the foregoing, Landlord shall not
disapprove a transfer of the Eyebrow Signage in connection with a Permitted Transfer, so long as
the original name of Tenant hereunder remains on the Eyebrow Signage. If the name on the Eyebrow
Signage will change in connection with such Permitted Transfer, Landlord shall have the right to
approve the new name on the Eyebrow Signage, which approval shall not be unreasonably withheld.

44. BUILDING SIGNAGE. In the event Tenant leases fifty percent (50%) or more of the Building,
Tenant shall have the right of first offer to have one exclusive sign to be located on top of the
Building (the “Building Signage”) at such time as space becomes available during the Term. In such
event, Landlord shall give written notice to Tenant of the availability of space for the Building
Signage and Tenant shall have a period of five (5) days to notify Landlord that Tenant exercises
its right of first offer for the Building Signage. The exact location of the Building Signage
shall be subject to all applicable Regulations and Landlord’s prior written approval, which
approval shall not be unreasonably withheld, provided that the location does not detract from the
first-class quality of the Building. Such right to Building Signage is personal to Tenant and is
subject to the following terms and conditions:

     44.1 Tenant shall submit plans and drawings for the Building Signage to the City of Aliso
Viejo and to any other public authorities having jurisdiction and shall obtain written approval
from each such jurisdiction prior to installation, and shall fully comply with all applicable
Regulations.

     44.2 Tenant shall, at Tenant’s sole cost and expense, design, construct and install the
Building Signage.

     44.3 The Building Signage shall be subject to Landlord’s prior written approval, which shall
not be unreasonably withheld.

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

          44.4.1 There is an Event of Default under this Lease.

          44.4.2 Tenant occupies less than fifty percent (50%) of the Building.

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

     44.5 Upon the expiration or earlier termination of this Lease or at such other time that
Tenant’s signage rights are terminated pursuant to the terms hereof, if Tenant fails to remove the
Building Signage and repair the Building in accordance with the terms of this Lease, Landlord shall
cause the Building Signage to be removed from the Building and the Building to be repaired and
restored to the condition which existed prior to the installation of the Building Signage
(including, if necessary, the replacement of any precast concrete panels), all at the sole cost and
expense of Tenant and otherwise in accordance with this Lease, without further notice from Landlord
notwithstanding anything to the contrary contained in this Lease. Tenant shall pay all costs and
expenses for such removal and restoration within five (5) business days following delivery of an
invoice therefor.

25

 

     44.6 The rights provided in this Article 44 shall be non-transferable unless otherwise agreed
by Landlord in writing in its sole discretion. Notwithstanding the foregoing, Landlord shall not
disapprove a transfer of the Building Signage in connection with a Permitted Transfer, so long as
the original name of Tenant hereunder remains on the Building Signage. If the name on the Building
Signage will change in connection with such Permitted Transfer, Landlord shall have the right to
approve the new name on the Building Signage, which approval shall not be unreasonably withheld.

45. MONUMENT SIGNAGE.

     45.1 Provided that no Event of Default exists under the terms of this Lease, and Tenant leases
and occupies the Premises, Tenant shall have the right of first offer to place its name on the
Building’s monument sign (the “Monument Sign”) at such time as space becomes available during the
Term, which shall be at Tenant’s sole cost, and subject to governmental approval. In such event,
Landlord shall give written notice to Tenant of the availability of space on the Monument Sign and
Tenant shall have a period of five (5) days to notify Landlord that Tenant desires to put its name
on the Monument Sign. The design, size and color of the signage with Tenant’s name to be included
on the Monument Sign, and the manner in which it is attached to the Monument Sign, shall be subject
to the reasonable approval of Landlord and all Regulations, and Landlord shall have the right to
require that all names on the Monument Sign be of the same size and style. Tenant, at its cost,
shall be responsible for the maintenance, repair or replacement of Tenant’s signage on the Monument
Sign, which shall be maintained in a manner reasonably satisfactory to Landlord. The location of
Tenant’s name on the Monument Sign, shall be subject to the existing rights of existing tenants in
the Building, and the location of Tenant’s name on the Monument Sign shall be further subject to
Landlord’s reasonable approval. Although the Monument Sign will be maintained by Landlord, Tenant
shall pay its proportionate share of the cost of any maintenance and repair associated with the
Monument Sign. Upon expiration or earlier termination of this Lease or Tenant’s right to
possession of the Premises, or if Tenant ceases to lease or occupy the Premises, Landlord, at
Tenant’s cost, payable as additional rent within five (5) business days after demand therefor,
shall have the right to remove Tenant’s signage from the Monument Sign and restore the Monument
Sign to the condition it was in prior to installation of Tenant’s signage thereon, ordinary wear
and tear excepted.

     45.2 The rights provided in this Article 45 shall be non-transferable unless otherwise agreed
by Landlord in writing. Notwithstanding the foregoing, Landlord shall not disapprove a transfer of
the Monument Signage in connection with a Permitted Transfer, so long as the original name of
Tenant hereunder remains on the Monument Signage. If the name on the Monument Signage will change
in connection with such Permitted Transfer, Landlord shall have the right to approve the new name
on the Monument Signage, which approval shall not be unreasonably withheld.

46. LANDLORD DEFAULT. In addition to any of Tenant’s rights or remedies at law but except as
expressly waived in this Lease and subject to Article 47, Landlord shall be in default under this
Lease if (i) Landlord fails to perform any of its obligations hereunder and said failure continues
for a period of 30 days after written notice thereof from Tenant to Landlord (provided that if such
failure cannot reasonably be cured within said 30 day period, Landlord shall be in default
hereunder only if Landlord fails to commence the cure of said failure within said 30 day period, or
having commenced the curative action within said 60 day period, fails to diligently pursue same)
and (ii) each mortgagee of whose identity Tenant has been notified in writing shall have failed to
cure such default within 30 days (or such longer period of time as may be specified in any written
agreement between Tenant and mortgagee regarding such matter) after receipt of written notice from
Tenant of Landlord’s failure to cure within the time periods provided above. In the event of a
default by Landlord under the Lease, Tenant shall use reasonable efforts to mitigate its damages
and losses arising from any such default and Tenant may pursue any and all remedies available to it
at law or in equity, provided, however, in no event shall Tenant claim a constructive or actual
eviction or that the Premises have become unsuitable or unhabitable prior to a default and failure
to cure by Landlord and its mortgagee under this Lease and, further provided, in no event shall
Tenant be entitled to receive more than its actual direct damages, it being agreed that Tenant
hereby waives any claim it otherwise may have for special or consequential damages.

47. LIMITATION OF LANDLORD’S LIABILITY. Redress for any claim against Landlord under this Lease
shall be limited to and enforceable only against and to the extent of Landlord’s interest in the
Building in which the Premises is located. The obligations of Landlord under this Lease are not
intended to be and shall not be personally binding on, nor

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

26

 

shall any resort be had to the private
properties of, any of its or its investment manager’s trustees, directors, officers, partners,
beneficiaries, members, stockholders, employees, or agents, and in no case shall Landlord be liable
to Tenant hereunder for any lost profits, damage to business, or any form of special, indirect or
consequential damages.

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the Lease Reference Date set
forth in the Reference Pages of this Lease.

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 	 	 
	RREEF AMERICA REIT II CORP. FFF,	 	 	 	AVANIR PHARMACEUTICALS,
	a Maryland corporation	 	 	 	a California corporation
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	RREEF Management Company, a

Delaware corporation, its Property Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Robin Iles
	 	 	 	Name:
	 	Eric K. Brandt	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

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

	 	                                        , 2006
	 	 	 	Dated:
	 	                                        , 2006	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Keith Katkin	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Sr. Vice President, Sales and Marketing	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Dated:
	 	                                        , 2006	 	 

27

 

EXHIBIT A – FLOOR PLAN DEPICTING THE PREMISES

attached to and made a part of the Lease bearing the

Lease Reference Date of April 28, 2006 between

RREEF AMERICA REIT II CORP. FFF, a Maryland corporation, as Landlord and

AVANIR PHARMACEUTICALS, a California corporation, as Tenant

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

	 	 	 
	A-1
	 	 
	 
	Initials

 

 

EXHIBIT A-1 – SITE PLAN

attached to and made a part of the Lease bearing the

Lease Reference Date of April 28, 2006 between

RREEF AMERICA REIT II CORP. FFF, a Maryland corporation, as Landlord and

AVANIR PHARMACEUTICALS, a California corporation, as Tenant

Exhibit A-1 is intended only to show the general location of the Building and/or the project of
which the Building is a part as of the beginning of the Term of the Lease. It does not in any way
supersede any of Landlord’s rights set forth in Article 17 of the Lease with respect to
arrangements and/or locations of public parts of the Building and changes in such arrangements
and/or locations. It is not to be scaled; any measurements or distances shown should be taken as
approximate.

	 	 	 
	A-2
	 	 
	 
	Initials

 

 

EXHIBIT B – INITIAL ALTERATIONS

attached to and made a part of the Lease bearing the

Lease Reference Date of April 28, 2006 between

RREEF AMERICA REIT II CORP. FFF, a Maryland corporation, as Landlord and

AVANIR PHARMACEUTICALS, a California corporation, as Tenant

1. This Exhibit B shall set forth the obligations of Landlord and Tenant with respect to
the improvements to be performed in the Initial Premises and the Additional Premises for Tenant’s
use. All improvements described in this Exhibit B to be constructed in and upon the
Initial Premises by Landlord in accordance with the Initial Premises Plans (as defined below) are
hereinafter referred to as the “Initial Premises Alterations” and all improvements described in
this Exhibit B to be constructed in and upon the Additional Premises by Landlord in
accordance with the Additional Premises Plans (as defined below) are hereinafter referred to as the
“Additional Premises Alterations”. The Initial Premises Alterations and the Additional Premises
Alterations shall sometimes be collectively referred to herein as the “Initial Alterations”. It is
agreed that construction of the Initial Alterations will be completed at Landlord’s sole cost and
expense (subject to the Initial Premises Maximum Amount and the Additional Premises Maximum Amount
(hereinafter defined) and further subject to the terms of Section 5 below), using Building standard
methods, materials, and finishes, in a good and workmanlike manner, and in accordance with the
Initial Premises Plans and the Additional Premises Plans, as the case may be. Notwithstanding the
foregoing, Landlord and Tenant acknowledge that the Initial Premises Plans (hereinafter defined)
for the Initial Premises Alterations have not yet been prepared and, therefore, it is impossible to
determine the exact cost of the Initial Premises Alterations at this time. Accordingly, Landlord
and Tenant agree that Landlord’s obligation to pay for the cost of the Initial Premises Alterations
(inclusive of the hard and soft costs of the Initial Premises Alterations, including the cost of
preparing the Initial Premises Plans, obtaining permits, a construction management fee equal to
three percent (3%) of the total construction costs and other related costs such as design and other
professional fees and permitting costs) shall be limited to $169,785.00 (the “Initial Premises
Maximum Amount”) and that Tenant shall be responsible for the cost of the Initial Premises
Alterations, plus any applicable state sales or use tax, if any, to the extent that it exceeds the
Initial Premises Maximum Amount. Landlord and Tenant acknowledge that the Additional Premises
Plans (hereinafter defined) for the Additional Premises Alterations have not yet been prepared and,
therefore, it is impossible to determine the exact cost of the Additional Premises Alterations at
this time. Accordingly, Landlord and Tenant agree that Landlord’s obligation to pay for the cost
of the Additional Premises Alterations (inclusive of the hard and soft costs of the Additional
Premises Alterations, including the cost of preparing the Additional Premises Plans, obtaining
permits, a construction management fee equal to three percent (3%) of the total construction costs
and other related costs such as design and other professional fees and permitting costs) shall be
limited to $94,350.00 (the “Additional Premises Maximum Amount”) and that Tenant shall be
responsible for the cost of the Additional Premises Alterations, plus any applicable state sales or
use tax, if any, to the extent that it exceeds the Additional Premises Maximum Amount. Landlord
shall obtain bids for the Initial Alterations from up to three (3) general contractors identified
by Tenant and reasonably approved by Landlord; provided that any such general contractor must at a
minimum be qualified (with good references), bonded, licensed in the state in which the Alterations
are being performed, and carry the insurance required by Landlord, all as reasonably determined by
Landlord. Landlord shall consult with Tenant upon receipt of such bids, and following such
consultation shall enter into a direct contract for the Initial Alterations with a general
contractor selected by Landlord. Landlord shall not be required to select the contractor that
presents the lowest bid. In addition, Landlord shall have the right to select and/or approve of
any subcontractors used in connection with the Initial Alterations.

2. Tenant shall be solely responsible for the timely preparation and submission to Landlord of the
final architectural, electrical and mechanical construction drawings, plans and specifications (the
“Initial Premises Plans”) necessary to construct the Initial Premises Alterations, which plans
shall be subject to approval by Landlord and Landlord’s architect and engineers and shall comply
with their requirements to avoid aesthetic or other conflicts with the design and function of the
balance of the Building. Tenant shall be solely responsible for the timely preparation and
submission to Landlord of the final architectural, electrical and mechanical construction drawings,
plans and specifications (the “Additional Premises Plans”) necessary to construct the Additional
Premises Alterations, which plans shall be subject to approval by Landlord and Landlord’s architect
and engineers and shall comply with their requirements to avoid aesthetic or other conflicts with
the design and function of the balance of the Building. The Initial Premises Plans and the
Additional Premises Plans shall sometimes be collectively referred to herein as the “Plans”.
Tenant shall be responsible for all elements of the design of the Plans (including, without
limitation, compliance with law, functionality of design, the structural integrity of the design,
the configuration of the Initial Premises and the Additional Premises, as the case may be, and the
placement of Tenant’s furniture, appliances and equipment), and Landlord’s approval of the Plans
shall in no event relieve Tenant of the responsibility for such design. If requested by Tenant,
Landlord’s architect will prepare the Plans necessary for such construction at Tenant’s cost.
Whether or not the layout and Plans are prepared with the help (in whole or in part) of Landlord’s
architect, Tenant agrees to remain solely responsible for the timely preparation and submission of
the Plans and

	 	 	 
	B-1
	 	 
	 
	Initials

 

 

for all elements of the design of such Plans and for all costs related thereto.
Tenant has assured itself by direct communication with the architect and engineers (Landlord’s or
its own, as the case may be) that the final approved Initial Premises Plans can be delivered to
Landlord on or before May 12, 2006 (the “Initial Premises Plans Due Date”), provided that Tenant
promptly furnishes complete information concerning its requirements to the architect and engineers
as and when requested by them. The final approved Additional Premises Plans shall be delivered to
Landlord on or before February 28, 2007 (the “Additional Premises Plans Due Date”), provided that
Tenant promptly furnishes complete information concerning its requirements to the architect and
engineers as and when requested by them. Each of the Initial Premises Plans Due Date and the
Additional Premises Plans Due Date shall be extended by one day for each day of Landlord Delay
(defined below) in responding to Tenant’s requests for approval of the Plans or revisions thereto
corresponding to the applicable Premises. Tenant covenants and agrees to cause the final, approved
Plans to be delivered to Landlord on or before the Initial Premises Plans Due Date and the
Additional Premises Plans Due Date, as applicable, and to devote such time as may be necessary in
consultation with the architect and engineers to enable them to complete and submit the Plans
within the required time limit. Time is of the essence in respect of preparation and submission of
the Plans by Tenant. If the Initial Premises Plans are not fully completed and approved by the
Initial Premises Plans Due Date, Tenant shall be responsible for one day of Tenant Delay for each
day during the period beginning on the day following the Initial Premises Plans Due Date and ending
on the date completed Initial Premises Plans are approved. If the Additional Premises Plans are
not fully completed and approved by the Additional Premises Plans Due Date, Tenant shall be
responsible for one day of Tenant Delay for each day during the period beginning on the day
following the Additional Premises Plans Due Date and ending on the date completed Additional
Premises Plans are approved. (The word “architect” as used in this Exhibit B shall include
an interior designer or space planner.) Landlord shall respond to any Tenant request for approval
of its Plans or any revisions thereto within three (3) business days following receipt thereof, and
each day beyond such three (3) business day period in which Landlord fails to respond shall be
considered one (1) day of “Landlord Delay” for purposes of this Exhibit B.

3. If Landlord’s estimate and/or the actual cost of the Initial Premises Alterations shall exceed
the Initial Premises Maximum Amount, Landlord, prior to commencing any construction of the Initial
Premises Alterations, shall submit to Tenant a written estimate setting forth the anticipated cost
of the Initial Premises Alterations, including but not limited to labor and materials, contractor’s
fees and permit fees. Within three (3) business days thereafter, Tenant shall either notify
Landlord in writing of its approval of the cost estimate, or specify its objections thereto and any
desired changes to the proposed Initial Premises Alterations. If Landlord’s estimate and/or the
actual cost of the Additional Premises Alterations shall exceed the Additional Premises Maximum
Amount, Landlord, prior to commencing any construction of the Additional Premises Alterations,
shall submit to Tenant a written estimate setting forth the anticipated cost of the Additional
Premises Alterations, including but not limited to labor and materials, contractor’s fees and
permit fees. Within three (3) business days thereafter, Tenant shall either notify Landlord in
writing of its approval of the cost estimate, or specify its objections thereto and any desired
changes to the proposed Additional Premises Alterations. If Tenant notifies Landlord of such
objections and desired changes with respect to either the Initial Premises Alterations or the
Additional Premises Alterations, Tenant shall work with Landlord to reach a mutually acceptable
alternative cost estimate and such period shall not be considered a Tenant Delay with respect to
the applicable Initial Alterations; provided that if Landlord and Tenant are unable to agree on an
alternative cost estimate within three (3) days after Tenant’s notification, then Landlord may
either (a) proceed with construction of the applicable Initial Alterations using Landlord’s cost
estimate, including any revisions to which Landlord and Tenant have agreed as of that date, or (b)
if Tenant so requests in writing, Landlord may elect to continue to work with Tenant to further
revise the cost estimate or applicable Initial Alterations, in which event any delay in completion
of the applicable Initial Alterations beyond the 3-day period above shall be a Tenant Delay.

4. If Landlord’s estimate and/or the actual cost of construction shall exceed the Initial Premises
Maximum Amount (such amounts exceeding the Initial Premises Maximum Amount being herein referred to
as the “Initial Premises Excess Costs”), Tenant shall pay to Landlord such Initial Premises Excess
Costs, plus any applicable state sales or use tax thereon, upon demand. If Landlord’s estimate
and/or the actual cost of construction shall exceed the Additional Premises Maximum Amount (such
amounts exceeding the Additional Premises Maximum Amount being herein referred to as the
“Additional Premises Excess Costs”), Tenant shall pay to Landlord such Additional Premises Excess
Costs, plus any applicable state sales or use tax thereon, upon demand. The statements of costs
submitted to Landlord by Landlord’s contractors shall be conclusive for purposes of determining the
actual cost of the items described therein. The amounts payable by Tenant hereunder constitute
rent payable pursuant to the Lease, and the failure to timely pay same constitutes an Event of
Default under the Lease.

5. If Tenant shall request any change, addition or alteration in any of the Plans after approval by
Landlord, Landlord shall have such revisions to the drawings prepared as soon as practicable, and
Tenant shall reimburse Landlord for the cost thereof, plus any applicable state sales or use tax
thereon, upon demand to the extent that the cost of performing such revisions cause the cost of the
Initial Premises Alterations to exceed the Initial Premises Maximum Amount or the cost of
performing such revisions cause the cost of the Additional Premises Alterations to exceed the
Additional Premises Maximum

	 	 	 
	B-2
	 	 
	 
	Initials

 

 

Amount. Promptly upon completion of the revisions, Landlord shall
notify Tenant in writing of the increased cost, if any, which will be chargeable to Tenant by
reason of such change, addition or deletion. Tenant, within one business day, shall notify
Landlord in writing whether it desires to proceed with such change, addition or deletion. In the
absence of such written authorization, Landlord shall have the option to continue work on the
Initial Premises or the Additional Premises, as applicable, disregarding the requested change,
addition or alteration, or Landlord may elect to discontinue work on the Initial Premises or the
Additional Premises until it receives notice of Tenant’s decision, in which event Tenant shall be
responsible for any Tenant Delay in completion of the Initial Premises or the Additional Premises
resulting therefrom. If such revisions result in a higher estimate of the cost of construction
and/or higher actual construction costs which exceed the Initial Premises Maximum Amount, such
increased estimate or costs shall be deemed Initial Premises Excess Costs pursuant to Section 4
hereof and Tenant shall pay such Initial Premises Excess Costs, plus any applicable state sales or
use tax thereon, upon demand. If such revisions result in a higher estimate of the cost of
construction and/or higher actual construction costs which exceed the Additional Premises Maximum
Amount, such increased estimate or costs shall be deemed Additional Premises Excess Costs pursuant
to Section 4 hereof and Tenant shall pay such Additional Premises Excess Costs, plus any applicable
state sales or use tax thereon, upon demand.

6. Following approval of the Initial Premises Plans and the payment by Tenant of the required
portion of the Initial Premises Excess Costs, if any, Landlord shall cause the Initial Premises
Alterations to be constructed substantially in accordance with the approved Initial Premises Plans.
Landlord shall notify Tenant of substantial completion of the Initial Premises Alterations.
Following approval of the Additional Premises Plans and the payment by Tenant of the required
portion of the Additional Premises Excess Costs, if any, Landlord shall cause the Additional
Premises Alterations to be constructed substantially in accordance with the approved Additional
Premises Plans. Landlord shall notify Tenant of substantial completion of the Additional Premises
Alterations.

7. Any portion of the Initial Premises Maximum Amount which exceeds the cost of the Initial
Premises Alterations or is otherwise remaining after September 30, 2006 may be added to the
Additional Premises Maximum Amount. Any portion of the Additional Premises Maximum Amount
(including any addition thereto carried over from the Initial Premises Maximum Amount) which
exceeds the cost of the Additional Premises Alterations or is otherwise remaining after September
30, 2007, shall accrue to the sole benefit of Landlord, it being agreed that Tenant shall not be
entitled to any credit, offset, abatement or payment with respect thereto.

8. This Exhibit B shall not be deemed applicable to any additional space added to the
Premises at any time or from time to time, whether by any options under the Lease or otherwise, or
to any portion of the original Premises or any additions to the Premises in the event of a renewal
or extension of the original Term of the Lease, whether by any options under the Lease or
otherwise, unless expressly so provided in the Lease or any amendment or supplement to the Lease.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

	 	 	 
	B-3
	 	 
	 
	Initials

 

 

EXHIBIT C – INITIAL PREMISES COMMENCEMENT DATE MEMORANDUM

attached to and made a part of the Lease bearing the

Lease Reference Date of April 28, 2006 between

RREEF AMERICA REIT II CORP. FFF, a Maryland corporation, as Landlord and

AVANIR PHARMACEUTICALS, a California corporation, as Tenant

INITIAL PREMISES COMMENCEMENT DATE MEMORANDUM

     THIS MEMORANDUM, made as of ___, 20___, by and between RREEF AMERICA REIT II CORP. FFF, a
Maryland corporation (“Landlord”) and AVANIR PHARMACEUTICALS, a California corporation (“Tenant”).

Recitals:

	 	A.	 	Landlord and Tenant are parties to that certain Lease, dated for reference
April 28, 2006 (the “Lease”) for certain premises (the “Premises”) consisting of
approximately 11,319 square feet for the Initial Premises and approximately 6,290
square feet for the Additional Premises, for a total of approximately 17,609 rentable
square feet at the building commonly known as 101 Enterprise, Aliso Viejo, California.
	 
	 	B.	 	Tenant is in possession of the Initial Premises and the Term of the Lease has
commenced.
	 
	 	C.	 	Landlord and Tenant desire to enter into this Memorandum confirming the Initial Premises
Commencement Date and the Termination Date and other matters under the Lease.

     NOW, THEREFORE, Landlord and Tenant agree as follows:

	 	1.	 	The Initial Premises Commencement Date is ___.
	 
	 	2.	 	The actual Termination Date is ___.
	 
	 	3.	 	The schedule of the Annual Rent and the Monthly Installment of Rent set forth
on the Reference Pages for the Initial Premises is deleted in its entirety, and the
following is substituted therefor:

[insert rent schedule]

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

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

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 	 	 
	RREEF AMERICA REIT II CORP. FFF,	 	 	 	AVANIR PHARMACEUTICALS,
	a Maryland corporation	 	 	 	a California corporation
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	RREEF Management Company, a	 	 	 	 	 	 	 	 
	 	 	Delaware corporation, its Property Manager	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	DO NOT SIGN
	 	 	 	Name:
	 	DO NOT SIGN	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

	 	 	 
	C-1
	 	 
	 
	Initials

 

 

EXHIBIT C-1 – ADDITIONAL PREMISES COMMENCEMENT DATE MEMORANDUM

attached to and made a part of the Lease bearing the

Lease Reference Date of April 28, 2006 between

RREEF AMERICA REIT II CORP. FFF, a Maryland corporation, as Landlord and

AVANIR PHARMACEUTICALS, a California corporation, as Tenant

ADDITIONAL PREMISES COMMENCEMENT DATE MEMORANDUM

     THIS MEMORANDUM, made as of ___, 20___, by and between RREEF AMERICA REIT II CORP. FFF, a
Maryland corporation (“Landlord”) and AVANIR PHARMACEUTICALS, a California corporation (“Tenant”).

Recitals:

	 	A.	 	Landlord and Tenant are parties to that certain Lease, dated for reference
April 28, 2006 (the “Lease”) for certain premises (the “Premises”) consisting of
approximately 11,319 square feet for the Initial Premises and approximately 6,290
square feet for the Additional Premises, for a total of approximately 17,609 rentable
square feet at the building commonly known as 101 Enterprise, Aliso Viejo, California.
	 
	 	B.	 	Tenant is in possession of the Premises and the Term of the Lease has commenced.
	 
	 	C.	 	Landlord and Tenant desire to enter into this Memorandum confirming the
Additional Premises Commencement Date and the Termination Date and other matters under
the Lease.

     NOW, THEREFORE, Landlord and Tenant agree as follows:

	 	1.	 	The Additional Premises Commencement Date is ___.
	 
	 	2.	 	The actual Termination Date is ___.
	 
	 	3.	 	The schedule of the Annual Rent and the Monthly Installment of Rent set forth
on the Reference Pages for the Premises is deleted in its entirety, and the following
is substituted therefor:

[insert rent schedule]

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

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

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 	 	 
	RREEF AMERICA REIT II CORP. FFF,	 	 	 	AVANIR PHARMACEUTICALS,
	a Maryland corporation	 	 	 	a California corporation
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	RREEF Management Company, a	 	 	 	 	 	 	 	 
	 	 	Delaware corporation, its Property Manager	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	DO NOT SIGN
	 	 	 	Name:
	 	DO NOT SIGN	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

	 	 	 
	C-2
	 	 
	 
	Initials

 

 

EXHIBIT D – RULES AND REGULATIONS

attached to and made a part of the Lease bearing the

Lease Reference Date of April 28, 2006 between

RREEF AMERICA REIT II CORP. FFF, a Maryland corporation, as Landlord and

AVANIR PHARMACEUTICALS, a California corporation, as Tenant

1. No sign, placard, picture, advertisement, name or notice shall be installed or displayed on any
part of the outside or inside of the Building without the prior written consent of the Landlord.
Landlord shall have the right to remove, at Tenant’s expense and without notice, any sign installed
or displayed in violation of this rule. All approved signs or lettering on doors and walls shall
be printed, painted, affixed or inscribed at Tenant’s expense by a vendor designated or approved by
Landlord. In addition, Landlord reserves the right to change from time to time the format of the
signs or lettering and to require previously approved signs or lettering to be appropriately
altered.

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

3. Tenant shall not obstruct any sidewalks, halls, passages, exits, entrances, elevators, or
stairways of the Building. No tenant and no employee or invitee of any tenant shall go upon the
roof of the Building.

4. Any directory of the Building, if provided, will be exclusively for the display of the name and
location of tenants only and Landlord reserves the right to exclude any other names. Landlord
reserves the right to charge for Tenant’s directory listing.

5. All cleaning and janitorial services for the Building and the Premises shall be provided
exclusively through Landlord. Tenant shall not cause any unnecessary labor by carelessness or
indifference to the good order and cleanliness of the Premises. Landlord shall not in any way be
responsible to any Tenant for any loss of property on the Premises, however occurring, or for any
damage to any Tenant’s property by the janitor or any other employee or any other person.

6. The toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for any
purpose other than that for which they were constructed. No foreign substance of any kind
whatsoever shall be thrown into any of them, and the expense of any breakage, stoppage or damage
resulting from the violation of this rule shall be borne by the Tenant who, or whose employees or
invitees, shall have caused it.

7. Tenant shall store all its trash and garbage within its Premises. 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 comply with any and all recycling
procedures designated by Landlord.

8. Landlord will furnish Tenant ten (10) keys free of charge to each door in the Premises that has
a passage way lock. Landlord may charge Tenant a reasonable amount for any additional keys, and
Tenant shall not make or have made additional keys on its own. Tenant shall not alter any lock or
install a new or additional lock or bolt on any door of its Premises. Tenant, upon the termination
of its tenancy, shall deliver to Landlord the keys of all doors which have been furnished to
Tenant, and in the event of loss of any keys so furnished, shall pay Landlord therefor.

9. If Tenant requires telephone, data, burglar alarm or similar service, the cost of purchasing,
installing and maintaining such service shall be borne solely by Tenant. No boring or cutting for
wires will be allowed without the prior written consent of Landlord.

10. No equipment, materials, furniture, packages, bulk supplies, merchandise or other property will
be received in the Building or carried in the elevators except between such hours and in such
elevators as may be designated by Landlord. The persons employed to move such equipment or
materials in or out of the Building must be acceptable to Landlord.

11. Tenant shall not place a load upon any floor which exceeds the load per square foot which such
floor was designed to carry and which is allowed by law. Heavy objects shall stand on such
platforms as determined by Landlord to be necessary to properly distribute the weight. Business
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 in the Building to such a degree as

	 	 	 
	D-1
	 	 
	 
	Initials

 

 

to
be objectionable to Landlord or to any tenants shall be placed and maintained by Tenant, at
Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate the noise or
vibration. Landlord will not be responsible for loss of or damage to any such equipment or other
property from any cause, and all damage done to the Building by maintaining or moving such
equipment or other property shall be repaired at the expense of Tenant.

12. Landlord shall in all cases retain the right to control and prevent access to the Building of
all persons whose presence in the reasonable judgment of Landlord would be prejudicial to the
safety, character, reputation or interests of the Building and its tenants, provided that nothing
contained in this rule shall be construed to prevent such access to persons with whom any tenant
normally deals in the ordinary course of its business, unless such persons are engaged in illegal
activities. Landlord reserves the right to exclude from the Building between the hours of 6 p.m.
and 7 a.m. the following day, or such other hours as may be established from time to time by
Landlord, and on Sundays and legal holidays, any person unless that person is known to the person
or employee in charge of the Building or has a pass and is properly identified. Tenant shall be
responsible for all persons for whom it requests passes and shall be liable to Landlord for all
acts of such persons. Landlord shall not be liable for damages for any error with regard to the
admission to or exclusion from the Building of any person.

13. Tenant shall not use any method of heating or air conditioning other than that supplied or
approved in writing by Landlord.

14. Tenant shall not waste electricity, water or air conditioning. Tenant shall close and lock the
doors of its Premises and entirely shut off all water faucets or other water apparatus and
electricity, gas or air outlets before Tenant and its employees leave the Premises. Tenant shall
be responsible for any damage or injuries sustained by other tenants or occupants of the Building
or by Landlord for noncompliance with this rule.

15. Tenant shall not install any radio or television antenna, satellite dish, loudspeaker or other
device on the roof or exterior walls of the Building without Landlord’s prior written consent,
which consent may be withheld in Landlord’s sole discretion, and which consent may in any event be
conditioned upon Tenant’s execution of Landlord’s standard form of license agreement. Tenant shall
be responsible for any interference caused by such installation.

16. Tenant shall not mark, drive nails, screw or drill into the partitions, woodwork, plaster, or
drywall (except for pictures, tackboards and similar office uses) or in any way deface the
Premises. Tenant shall not cut or bore holes for wires. Tenant shall not affix any floor covering
to the floor of the Premises in any manner except as approved by Landlord. Tenant shall repair any
damage resulting from noncompliance with this rule.

17. Tenant shall not install, maintain or operate upon the Premises any vending machine without
Landlord’s prior written consent, except that Tenant may install food and drink vending machines
solely for the convenience of its employees.

18. No cooking shall be done or permitted by any tenant on the Premises, except that Underwriters’
Laboratory approved microwave ovens or equipment for brewing coffee, tea, hot chocolate and similar
beverages shall be permitted provided that such equipment and use is in accordance with all
applicable Regulations.

19. Tenant shall not use in any space or in the public halls of the Building any hand trucks except
those equipped with the rubber tires and side guards or such other material-handling equipment as
Landlord may approve. Tenant shall not bring any other vehicles of any kind into the Building.

20. Tenant shall not permit any motor vehicles to be washed or mechanical work or maintenance of
motor vehicles to be performed in any parking lot.

21. Tenant shall not use the name of the Building or any photograph or likeness of the Building in
connection with or in promoting or advertising Tenant’s business, except that Tenant may include
the Building name in Tenant’s address and provided that Tenant may use images of the Building on
its website with Landlord’s prior approval. Landlord shall have the right, exercisable without
notice and without liability to any tenant, to change the name and address of the Building.

22. Tenant requests for services must be submitted to the Building office by an authorized
individual. Employees of Landlord shall not perform any work or do anything outside of their
regular duties unless under special instruction from Landlord, and no employee of Landlord will
admit any person (Tenant or otherwise) to any office without specific instructions from Landlord.

23. Tenant shall not permit smoking or carrying of lighted cigarettes or cigars other than in areas
designated by Landlord as smoking areas.

	 	 	 
	D-2
	 	 
	 
	Initials

 

 

24. Canvassing, soliciting, distribution of handbills or any other written material in the Building
is prohibited and each tenant shall cooperate to prevent the same. No tenant shall solicit
business from other tenants or permit the sale of any good or merchandise in the Building without
the written consent of Landlord.

25. Tenant shall not permit any animals other than service animals, e.g. seeing-eye dogs, to be
brought or kept in or about the Premises or any common area of the Building.

26. These Rules and Regulations are in addition to, and shall not be construed to in any way modify
or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of any
premises in the Building. Landlord may waive any one or more of these Rules and Regulations for the
benefit of any particular tenant or tenants, but no such waiver by Landlord shall be construed as a
waiver of such Rules and Regulations in favor of any other tenant or tenants, nor prevent Landlord
from thereafter enforcing any such Rules and Regulations against any or all of the tenants of the
Building.

27. Landlord reserves the right to make such other and reasonable rules and regulations as in its
judgment may from time to time be needed for safety and security, for care and cleanliness of the
Building, and for the preservation of good order in and about the Building. Tenant agrees to abide
by all such rules and regulations herein stated and any additional rules and regulations which are
adopted. Tenant shall be responsible for the observance of all of the foregoing rules by Tenant’s
employees, agents, clients, customers, invitees and guests.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

	 	 	 
	D-3
	 	 
	 
	Initials

 

 

EXHIBIT E – EARLY POSSESSION AGREEMENT

attached to and made a part of the Lease bearing the

Lease Reference Date of April 28, 2006 between

RREEF AMERICA REIT II CORP. FFF, a Maryland corporation, as Landlord and

AVANIR PHARMACEUTICALS, a California corporation, as Tenant

EARLY POSSESSION AGREEMENT

     Reference is made to that Lease dated April 28, 2006, between RREEF AMERICA REIT II CORP. FFF,
a Maryland corporation (“Landlord”) and AVANIR PHARMACEUTICALS, a California corporation
(“Tenant”), for the premises located in the City of Aliso Viejo, County of Orange, State of
California, commonly known as 101 Enterprise.

     It is hereby agreed that, notwithstanding anything to the contrary contained in the Lease,
Tenant may occupy the Premises on                                                             . The first
Monthly Installment of Rent is due on                     .

     Landlord and Tenant agree that all the terms and conditions of the above referenced Lease are
in full force and effect as of the date of Tenant’s possession of the Premises other than the
payment of Rent.

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 	 	 
	RREEF AMERICA REIT II CORP. FFF,	 	 	 	AVANIR PHARMACEUTICALS,
	a Maryland corporation	 	 	 	a California corporation
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	RREEF Management Company, a	 	 	 	 	 	 	 	 
	 	 	Delaware corporation, its Property Manager	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	DO NOT SIGN
	 	 	 	Name:
	 	DO NOT SIGN	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

	 	 	 
	E-1
	 	 
	 
	Initials

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]