Document:

Employment Agreement

 EXHIBIT 10.35 
  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT, made and entered into as of April 19, 2004, by and between Robert L. Parkinson, Jr. (the “Executive”) and Baxter International
Inc. (the “Company”); 
  
 WITNESSETH THAT:

  
 WHEREAS, the parties desire to enter into this Agreement
pertaining to the employment of the Executive by the Company; 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, it is hereby agreed by the Executive and the Company as follows: 
  
 1. Performance of Services. The Executive’s employment with the Company shall commence on April 26, 2004 (the
“Effective Date”), and shall be subject to the following: 
  

	(a)	Subject to the terms of this Agreement, the Company hereby agrees to employ the Executive as its Chairman, Chief Executive Officer and President during the Agreement Term (as
defined below), and the Executive hereby agrees to serve in such capacity during the Agreement Term. 

  

	(b)	During the Agreement Term, while the Executive is employed by the Company, the Board of Directors of the Company (the “Board”) shall use its best efforts to cause the
Executive to be elected as a member of the Board. It is understood by the parties that, pursuant to its fiduciary responsibilities, duty of care and obligations with respect to corporate governance, the Board may determine that it is appropriate for
the position of Chairman of the Board to be held by a director who is not an employee or officer of the Company. If two-thirds of the Board affirmatively vote at a meeting of the Board called and held for such purpose that it is appropriate to
separate the positions of Chairman and CEO, notwithstanding any other provisions of the Agreement, the occurrence of such a determination by the Board resulting in the failure of the Executive to be elected as the Chairman of the Board will not
constitute Good Reason or a breach of this Agreement, provided that Executive concurs with the decision. The Board agrees to elect Executive as a member of the Board and Chairman no later than the Effective Date. In addition, this determination will
not result in any change to the Executive’s remuneration under the terms of this Agreement. 

  

	(c)	The Executive agrees that he shall perform his duties faithfully and efficiently subject to the directions of the Board, and the Executive shall have the authority and duty
generally to supervise and direct the business of the Company, subject only to the control and direction of the Board. The Executive’s duties may include providing services for both the Company and the Subsidiaries (as defined below) as
determined by the Board; provided that the Executive shall not, without his consent, be assigned tasks that would be inconsistent with those of Chairman, President and Chief Executive Officer. The Executive shall report to the Board and shall have
such authority, power, responsibilities and duties as are set forth in the Company’s Bylaws and as are inherent in his positions 

  

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 (and the undertakings applicable to his positions) and necessary to carry out his responsibilities and
the duties required of him hereunder. 
  

	(d)	During the Agreement Term, while the Executive is employed by the Company, the Executive shall devote his full time, energies and talents to serving as its Chairman, President and
Chief Executive Officer. The Executive will exert his best efforts in the performance of his duties as an employee of the Company and will remain loyal to the Company during the term of his employment. 

  

	(e)	The Executive may be asked to submit to drug testing as a condition of employment or continued employment and consents to such testing as determined by the Company to be
appropriate. 

  

	(f)	The Executive will comply with Baxter Shared Values: Standards for Business Ethics. The Board has the right to make and enforce any other rules and regulations generally
applicable to other senior officers that will govern Executive’s employment provided that they are not contrary to the Agreement. 

  

	(g)	The Executive acknowledges and agrees that the Executive owes a fiduciary duty of loyalty, fidelity, and allegiance to act at all times in the best interests of the Company and its
shareholders, in accordance with Delaware law. In keeping with these duties, the Executive shall make full disclosure to the Company of all business opportunities pertaining to the Company’s business and shall not appropriate for the
Executive’s own benefit business opportunities concerning the subject matter of the fiduciary relationship. 

  

	(h)	Notwithstanding the foregoing provisions of this paragraph 1, during the Agreement Term, the Executive may devote reasonable time to activities other than those required under this
Agreement, including the supervision of his personal investments, and activities involving professional, charitable, community, educational, religious and similar types of organizations, speaking engagements, membership on the boards of directors of
other organizations (as limited by the Company’s Corporate Governance Guidelines), and similar types of activities, to the extent that such other activities do not, in the judgment of the Board, inhibit or prohibit the performance of the
Executive’s duties under this Agreement, or conflict in any material way with the business of the Company or any Subsidiary; provided, however, that the Executive shall not serve on the board of any business, hold any other position with any
business, or otherwise engage in any business activity, without the consent of the Board. The Company acknowledges that, as of the date of this Agreement, the Executive is a member of the board of directors of Enzon Pharma, Inc. and GeneProt Inc,
and the Executive will be allowed a reasonable time to resign from these boards, as well as from any other boards on which he sits and from which it is appropriate that he resigns pursuant to the terms of this Agreement. Notwithstanding the
foregoing, the Board understands and agrees to the Executive’s continued service on the boards of Northwestern Memorial Hospital and Northwestern Memorial Foundation, and to the Executive’s requirements to cooperate with Abbott
Laboratories and GeneProt Inc., respectively, in connection with certain ongoing litigation. 

  

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	(i)	Subject to the terms of this Agreement, the Executive shall not be required to perform services under this Agreement during any period that he is Disabled. The Executive shall be
considered “Disabled” during any period in which he has a physical or mental disability which renders him incapable of performing his duties under this Agreement. In the event of a dispute as to whether the Executive is Disabled or
Permanently Disabled (as defined in paragraph 3(b)), the Company may refer the same to a licensed practicing physician of the Company’s choice and reasonably acceptable to the Executive, and the Executive agrees to submit to such tests and
examinations as such physician shall deem appropriate. During the period in which the Executive is Disabled, the Company may appoint a temporary replacement to assume the Executive’s responsibilities. 

  

	(j)	The “Agreement Term” shall be determined as follows: 

  
 (i) The Agreement Term shall begin on the Effective Date. 
  
 (ii) The Agreement Term shall end on the three-year anniversary of the Effective Date; provided that, subject to subparagraph (iii) below, beginning on
the one-year anniversary of the Effective Date, the Agreement Term shall, on a daily basis, be automatically extended by one day. As a result of this day-to-day extension, and subject to subparagraph (iii) below, at any time after the one-year
anniversary of the Effective Date, the Agreement Term shall be two years. 
  
 (iii) Either party may, at any time during the Agreement Term, cease the automatic extensions otherwise provided in subparagraph (ii) above, by delivery to the other party of written notice of such cessation. Such
cessation of extensions will not be effective earlier than the date of delivery of such notice. For the avoidance of doubt, the end of the Agreement Term shall not be less than two years following the delivery of the written notice of cessation
referred to in this subparagraph (iii). 
  

	(k)	For purposes of this Agreement, the term “Subsidiary” shall mean any corporation, partnership, joint venture or other entity during any period in which at least a fifty
percent interest in such entity is owned, directly or indirectly, by the Company (or a successor to the Company). 

  
 2. Compensation. Subject to the terms of this Agreement, during the Agreement Term, while the Executive is employed by the Company, the Company
shall compensate him for his services as follows: 
  

	(a)	Salary. The Executive shall receive, for each 12-consecutive month period beginning on the Effective Date and each anniversary thereof, in substantially equal monthly or more
frequent installments, an annual base salary of not less than $1,100,000 (the “Salary”). The Executive’s Salary rate shall be reviewed annually by the Compensation Committee of the Board during the Agreement Term, while the Executive
is employed by the Company, to determine whether an increase in the amount of Salary is appropriate. In no event shall the Salary of the Executive be reduced to an amount that is less than the amount specified in this paragraph 2(a), or to an amount
that is less than the amount that he was previously receiving, except to the extent that reductions of the same percentage 

  

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 are being made at the same time to the salaries of all other Company officers named in the Company’s
then-current proxy statement, and such Salary shall be restored to its prior level when, and to the same extent, as the restoration that applies to such other officers. 
  

	(b)	Annual Bonus. The Executive shall participate in an annual officer bonus program attached hereto as Exhibit A, subject to subparagraph (i) below. The bonus program provides
for payment of a cash bonus amount equal to (i) 200% of the Executive’s annual Salary (as in effect on the first day of the performance period) if maximum performance levels are achieved for the performance period, (ii) 125% of the
Executive’s annual Salary (as in effect on the first day of the performance period) if target performance levels are achieved for the performance period, and (iii) such lesser amounts as provided in the program document. The performance
objectives shall be established by the Compensation Committee, subject to subparagraph (i) below, following consultation with the Executive prior to, or within 90 days after the commencement of, each fiscal year. The bonus shall be paid to the
Executive no later than the date on which bonuses are typically paid to other senior officers of the Company. Notwithstanding the foregoing provisions of this paragraph 2(b): 

  
 (i) The performance period ending December 31, 2004 shall begin on the
Effective Date, and the Executive’s bonus for such period shall be subject to a pro-rata reduction to reflect the fact that the performance period is less than 12 months. The performance objectives for the performance period ending on December
31, 2004 shall be established not later than May 31, 2004. 
  
 (ii) For the performance period ending December 31, 2004, and subject to subparagraph (i) above, the bonus paid to the Executive shall not be less than the target level for that performance period. For the performance period ending December
31, 2005, the bonus paid to the Executive shall not be less than the target level for that performance period. 
  

	(c)	Quarterly Bonus. In addition to the annual bonus program described in paragraph 2(b) above, the Executive shall be eligible to participate in the quarterly bonus program, a
copy of which is attached hereto as Exhibit B, beginning with the second calendar quarter of 2004. Under the quarterly bonus program, if the performance goals for the quarter are achieved, the Executive shall receive a payment equal to 5% of his
annual target bonus as described in paragraph 2(b) above. The performance objectives shall be established by the Compensation Committee. The Compensation Committee may modify or cancel the quarterly bonus program at any time for participating senior
officers of the Company, and if such modification or cancellation occurs, a corresponding change or cancellation shall apply to the Executive’s rights to such quarterly bonus payments under this paragraph 2(c). Such quarterly bonus shall not be
in lieu of, or offset against, the annual bonus payable under paragraph 2(b) above. 

  

	(d)	Equity Awards. The Executive will be eligible for the following equity awards: 

  
 (i) As of the date of this Agreement, the Executive will be granted a non-qualified option to purchase 650,000 shares of
stock of the Company, with an option exercise price equal to the fair market value of the Company’s stock on that date. The option shall be subject 
  

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 to the terms provided under the generally applicable option awards for the Company’s senior
officers, as set forth in Exhibit C to this Agreement, which is attached to and forms a part of this Agreement. No other options or other equity awards will be granted to the Executive for calendar year 2004. 
  
 (ii) For calendar years after 2004, the Executive shall be granted stock
options and restricted stock at such times as options and restricted stock are granted to the Company’s other senior executives. Such options and restricted stock shall be subject to the terms provided under the generally applicable option and
restricted stock awards for the Company’s senior officers at the time of the awards, except as modified by this Agreement. Pursuant to the Company’s Long Term Incentive Plan, as set forth in Exhibit D to this Agreement, which is attached
to and forms a part of this Agreement, for calendar year 2005, at the time other officers are granted equity awards, the Executive will be granted an option for a minimum of 455,000 shares of Company stock and a restricted Company stock award for a
minimum of 48,750 shares. After 2005, all such awards to the Executive shall be commensurate with his position as Chief Executive Officer as determined by the Compensation Committee. 
  

	(e)	Other Fringe Benefits. Except as otherwise specifically provided to the contrary in this Agreement, the Executive shall be provided with the welfare benefits and other fringe
benefits and perquisites to the same extent and on the same terms as those benefits are provided by the Company from time to time to the Company’s other senior executives and as described in the attached Exhibit E, provided, however, that if
any such benefits are adjusted to reflect an executive’s position, the Executive’s benefits shall be adjusted in a manner commensurate with his position. The Executive shall also be entitled to the perquisites that are customarily provided
in connection with his position. Nothing in this paragraph 2(e) shall be construed to prevent the Company from revising the benefits or perquisites generally provided to executives from time to time. However, the Company shall not be required to
provide a benefit under this paragraph 2(e) if such benefit would duplicate (or otherwise be of the same type as) a benefit specifically required to be provided under another provision of this Agreement. The Executive shall complete all forms and
physical examinations, and otherwise take all other similar actions to secure coverage and benefits described in this paragraph 2, to the extent determined to be necessary or appropriate by the Company. 

  

	(f)	Disability Insurance. The Executive shall receive from the Company disability income replacement coverage which will provide for replacement of income subject to the terms of
the Company disability insurance plan that applies to senior officers of the Company during any period in which the Executive is Disabled if the disability arose during the Agreement Term and prior to the Executive’s Date of Termination. During
any period while the Executive is Disabled and is otherwise entitled to receive Salary and bonus payments under this Agreement, any such Salary and bonus payments to the Executive shall be reduced by the amount of any benefits paid for the same
period of time under the Company-provided disability income replacement coverage. 

  

	(g)	Expenses. The Executive is authorized to incur reasonable expenses for entertainment, traveling, meals, lodging and similar items in promoting the Company’s business.
The 

  

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 Company will reimburse the Executive for all reasonable expenses so incurred, provided that such expenses
are incurred and accounted for in accordance with its reasonable policies and procedures applicable from time to time with respect to its senior officers. 
  

	(h)	Pension. The Executive shall be entitled to a Pension from the Company or any successor thereto, subject to the following and the other terms of this Agreement:

  
 (i) No Pension shall be payable if the
Participant’s Date of Termination occurs for any reason prior to the three-year anniversary of the Effective Date or if the Date of Termination occurs for Cause. 
  
 (ii) The Pension shall be paid monthly to the Executive for life commencing as of the first day of the calendar month
following such Date of Termination in an amount equal to one-twelfth (1/12) of 1.75% of Executive’s final average pay multiplied by his number of credited service years, minus (ii) 1.75% of the Executive’s estimated primary social security
benefit multiplied by his number of actual service years. 
  
 (iii) The Pension payments shall be offset by the pension payments to Executive under any tax-qualified or other defined benefit pension plans of the Company. 
  
 (iv) The Executive’s final average pay is equal to the average of the Executive’s five (or his total actual
service years, if shorter) highest consecutive calendar years of earnings (Salary and bonus) out of his last ten (or his total actual service years, if shorter) calendar years of earnings. 
  
 (v) The number of credited service years shall be equal to the number of
twelve-month periods commencing with the Effective Date during which the Executive is employed by the Company (each an “actual service year”), provided that the Executive shall receive “credited service years” in accordance with
the following schedule: 
  

			
		
	Actual Service Years	 	Cumulative Credited Service Years
		
	Less than three years	 	Zero years
		
	At least three years but less than four years	 	Five years
		
	At least four years but less than five years	 	Six years
		
	At least five years but less than six years	 	Nine years
		
	Six or more years	 	 Nine years plus one year for each full
 actual service year after five years of
 actual service

  
 3. Termination.
The Executive’s employment with the Company during the Agreement Term may be terminated by the Company or the Executive without any breach of this Agreement only under the circumstances described in paragraphs 3(a) through 3(g): 
  

	(a)	Death. The Executive’s employment hereunder will terminate upon his death. 

  

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	(b)	Permanent Disability. The Company may terminate the Executive’s employment during any period in which he is Permanently Disabled. The Executive shall be considered
“Permanently Disabled” during any period in which he is Disabled; provided, however, that the Executive shall be not be considered “Permanently Disabled” unless (i) the Executive has a physical or mental disability which renders
the Executive incapable of performing the Executive’s duties on a permanent, full-time basis; (ii) such disability is reasonably expected by the Board to continue for at least 90 days; and (iii) at the Executive’s Date of Termination, the
Executive is entitled to income replacement benefits under the Company’s long-term disability plan or another arrangement providing substantially similar benefits. 

  

	(c)	Cause. The Company may terminate the Executive’s employment hereunder at any time for Cause. For purposes of this Agreement, the term “Cause” shall mean:

  
 (i) the willful and continued failure by the
Executive to substantially perform his duties with the Company (other than any such failure resulting from the Executive’s being Disabled), within a reasonable period of time after a written demand for substantial performance is delivered to
the Executive by the Board, which demand specifically identifies the manner in which the Board believes that the Executive has not substantially performed his duties; 
  
 (ii) the willful engaging by the Executive in conduct which is demonstrably and materially injurious to the Company,
monetarily or otherwise; or 
  
 (iii) the engaging by the
Executive in egregious misconduct involving serious moral turpitude to the extent that, in the reasonable judgment of the Company’s Board, the Executive’s credibility and reputation no longer conform to the standard of the Company’s
executives. 
  
 For purposes of this Agreement, no act, or
failure to act, on the Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best
interest of the Company. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until the Company delivers to the Executive a copy of a resolution duly adopted by the affirmative vote of the
majority of the entire membership of the Board (not including the Executive) at a meeting of the Board called and held for such purpose (after reasonable notice to the Executive). 
  

	(d)	Constructive Discharge. If (I) the Executive provides written notice to the Company of the occurrence of Good Reason (as defined below) within 10 business days after the
Executive has knowledge of the circumstances constituting Good Reason, which notice specifically identifies the circumstances which the Executive believes constitute Good Reason; (II) the Company fails to notify the Executive of the Company’s
intended method of correction within 10 business days after the Company receives the notice, or the Company fails to correct the circumstances within 10 business days after such notice; and (III) the Executive resigns within 10 business days after
receiving the Company’s response, if such notice does not indicate an intention to correct such circumstances, or 

  

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within 10 business days after the Company fails to correct such circumstances; then the Executive shall be considered to have been subject to a Constructive
Discharge by the Company. For purposes of this Agreement, “Good Reason” shall mean, without the Executive’s express written consent (and except in consequence of a prior termination of the Executive’s employment), the occurrence
of any of the following circumstances: 
  
 (i) Except as
otherwise agreed by the Executive and the Board, (I) the assignment to the Executive of any duties materially inconsistent with the Executive’s position and status as set forth in paragraph 1, (II) any material reduction in the authority or
responsibility of the Executive or other substantial reduction in the terms and conditions of the Executive’s employment, (III) a change in the Executive’s reporting relationship so that the Executive ceases to report directly to the
Board, (IV) the failure of the Executive to be elected to the Board as of the Effective Date or to be reelected to the Board while employed by the Company, (V) the failure of the Board to nominate the Executive for reelection to the Board and
recommend to the Company’s stockholders that they vote in favor of the Executive’s reelection to the Board, or (VI) the failure to elect or reelect the Executive as Chairman (without the Executive’s advance written consent to such
failure), with the date of such Good Reason deemed to occur on the failure to elect or reelect the Executive as Chairman. 
  
 (ii) The relocation of the Executive’s base office to an office that is more than 50 highway miles of the Executive’s base office on the
Effective Date. 
  
 (iii) The failure of the Company to obtain a
satisfactory agreement from any successor to assume and agree to perform this Agreement. 
  
 (iv) Any purported termination of the Executive’s employment which is not effected pursuant to a Notice of Termination satisfying the requirements of paragraph 3(h) below, and for purposes of this Agreement, no
such purported termination shall be effective. 
  
 (v) Except as
permitted in paragraph 2(a), a reduction in the Executive’s Salary as the same may be increased from time to time. 
  
 (vi) A change in the bonus program identified in paragraph 2(b) that disproportionately reduces the Executive’s bonus opportunity as compared to
other senior officers named in the then-current annual proxy statement. 
  
 (vii) Any material breach of this Agreement by the Company not described in paragraphs (i) through (vi) next above. 
  
 The Executive’s right to terminate his employment pursuant to this paragraph 3(d) shall not be affected by his incapacity due to physical or mental
illness. 
  

	(e)	 Termination by Executive. The Executive may terminate his employment hereunder at any time for any reason by giving the Company prior written Notice of
Termination (as defined in paragraph 3(h)), which Notice of Termination shall be effective not less than 90 days after it is given to the Company, provided that nothing in this Agreement shall require the Executive to specify a reason for any such
termination. However, to the 

  

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extent that the procedures specified in paragraph 3(d) are required, the procedures of this paragraph 3(e) may not be used in lieu of the procedures required
under paragraph 3(d). 

  

	(f)	Termination by Company. The Company may terminate the Executive’s employment hereunder at any time for any reason, by giving the Executive prior written Notice of
Termination, which Notice of Termination shall be effective immediately, or such later time as is specified in such notice. The Company shall not be required to specify a reason for the termination under this paragraph 3(f), provided that
termination of the Executive’s employment by the Company shall be deemed to have occurred under this paragraph 3(f) only if it is not for reasons described in paragraph 3(b), 3(c), 3(d), or 3(e). Notwithstanding the foregoing provisions of this
paragraph 3(f), if the Executive’s employment is terminated by the Company in accordance with this paragraph 3(f), and within 10 business days thereafter, it is determined by the Board that circumstances existed which would have constituted a
basis for termination of the Executive’s employment for Cause in accordance with paragraph 3(c) (disregarding circumstances which could have been remedied if notice had been given in accordance with paragraph 3(c)(i)), the Executive’s
employment will be deemed to have been terminated for Cause in accordance with paragraph 3(c). 

  

	(g)	Termination After Change in Control. The Executive may terminate his employment with the Company or a successor for any reason following a Change in Control (as defined in
the Company’s 2003 Incentive Compensation Program on the Effective Date). 

  

	(h)	Notice of Termination. Any termination of the Executive’s employment by the Company or the Executive (other than a termination pursuant to paragraph 3(a)) must be
communicated by a written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” means a dated notice which indicates the Date of Termination (not earlier than the date on which the
notice is provided), and which indicates the specific termination provision in this Agreement relied on and which sets forth in reasonable detail the facts and circumstances, if any, claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated. 

  

	(i)	Date of Termination. “Date of Termination” means the last day the Executive is employed by the Company (including any successor to the Company as determined in
accordance with paragraph 21). If the Executive becomes employed by the entity into which the Company is merged, or the purchaser of substantially all of the assets of the Company, or a successor to such entity or purchaser, the Executive shall not
be treated as having terminated employment for purposes of this Agreement until such time as the Executive terminates employment with the successor (including, without limitation, the merged entity or purchaser). 

  

	(j)	Effect of Termination. If, on the Date of Termination, the Executive is a member of the Board of Directors of the Company or any of the Subsidiaries, or holds any other
position with the Company and the Subsidiaries, the Executive shall resign from all such positions as of the Date of Termination. 

  

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	(k)	Intervening Termination Event. If, prior to the scheduled date of the Executive’s termination of employment pursuant to the originally filed Notice of Termination (the
“Original Notice of Termination”), the Executive’s termination of employment occurs under circumstances described in another provision of paragraph 3, then, for purposes of this Agreement, the Date of Termination shall not be deemed
to have occurred by reason of Original Notice of Termination, but by reason of the subsequent event resulting in employment termination. 

  
 4. Rights Upon Termination. The Executive’s right to payment and benefits under this Agreement for periods after his Date of Termination shall
be determined in accordance with the following provisions of this paragraph 4: 
  

	(a)	General. If the Executive’s Date of Termination occurs during the Agreement Term for any reason, the Company shall pay to the Executive (or, in the event of his death,
his beneficiary) the compensation and benefits set forth below and, as applicable, those under paragraphs 4(c) and 4(d): 

  
 (i) The Executive’s Salary for the period ending on the Date of Termination. 
  
 (ii) Payment for unused vacation days, as determined in accordance with Company policy as in effect from time to time.

  
 (iii) If the Date of Termination occurs after the end of a
performance period and prior to the payment of the annual bonus and quarterly bonus (as described in paragraphs 2(b) and 2(c)) for the period, the Executive shall be paid such bonus amounts at the regularly scheduled time. 
  
 (iv) The Executive and any of his dependents shall be eligible for COBRA
continuation coverage (as described in section 4980B of the Internal Revenue Code of 1986, as amended) to the extent required by applicable law. 
  
 (v) Any other payments or benefits to be provided to the Executive by the Company or a Subsidiary pursuant to any employee benefit plans or arrangements
established or adopted by the Company or a Subsidiary (including, without limitation, any rights to indemnification from the Company (or from a third-party insurer for directors and officers liability coverage) with respect to any costs, losses,
claims, suits, proceedings, damages or liabilities to which the Executive may become subject which arise out of, are based upon or relate to the Executive’s employment by the Company or the Executive’s service as an officer or member of
the Board of Directors of the Company (or any Subsidiary), to the extent such amounts are due from the Company in accordance with the terms of such plans or arrangements. 
  
 (vi) Executive will receive pension benefits upon termination as set forth in section 2(h). 
  
 Except as may otherwise be expressly provided to the contrary in this
Agreement, nothing in this Agreement shall be construed as requiring the Executive to be treated as employed by the Company for purposes of any employee benefit plan or arrangement following the Executive’s Date of Termination. 
  

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	(b)	Resignation and Termination for Cause. If the Executive’s Date of Termination occurs during the Agreement Term under circumstances described in paragraph 3(c) (relating
to the Executive’s termination for Cause), or paragraph 3(e) (relating to the Executive’s resignation), then, except as otherwise expressly provided in this Agreement or otherwise agreed in writing between the Executive and the Company,
the Executive shall not be entitled to the annual bonus and quarterly bonus amounts (as described in paragraphs 2(b) and 2(c)) for the performance periods in which the Date of Termination occurs, or for subsequent performance periods; and if
terminated for Cause the Company shall have no obligation to make payments under the Agreement for periods after the Executive’s Date of Termination. 

  

	(c)	Death or Disability. If the Executive’s Date of Termination occurs during the Agreement Term under circumstances described in paragraph 3(a) (relating to
Executive’s death) or paragraph 3(b) (relating to Executive’s being Permanently Disabled), then, in addition to the amounts payable in accordance with paragraph 4(a), the Executive shall receive payment of the annual bonus and quarterly
bonus (as described in paragraphs 2(b) and 2(c)) for the performance periods in which his Date of Termination occurs, based on actual performance for the entire periods, and payable at the same time as it is payable for other participants in the
bonus plan; provided, however, that it shall be subject to a pro-rata reduction for the portion of the performance period following the Date of Termination. If the Executive’s Date of Termination occurs during the Agreement Term under
circumstances described in paragraph 3(a) (relating to the Executive’s death) or paragraph 3(b) (relating to the Executive being Permanently Disabled), all restricted stock awards shall fully vest immediately and all restrictions shall lapse
and all stock options shall fully vest immediately and be exercisable for five years, but in no event later than the date fixed for expiration of the option (determined without regard to Executive’s termination of employment), and the Executive
and his family members shall be entitled to receive the maximum level of medical benefits afforded to senior executives or their beneficiaries upon termination resulting from death or Disability of the senior executive, but not less than 18 months
(or 36 months in the case of death) of Company paid coverage, with the period of such medical benefit coverage being counted toward the Company’s obligation to provide COBRA medical continuation coverage (as described in section 4980B of
the Internal Revenue Code of 1986, as amended (if any)). In addition, if the Executive Date of Termination occurs during the Agreement Term under circumstances described in paragraph 3(b) (relating to the Executive’s being Permanently
Disabled), he shall be entitled to payment of his Salary through the commencement of long term disability payments to him under any plan provided or paid for by the Company. 

  

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	(d)	Termination without Cause, Constructive Discharge, Change in Control and Non-Renewal of Agreement. If the Executive’s Date of Termination occurs during the Agreement
Term under circumstances described in paragraph 3(d) (relating to Constructive Discharge), paragraph 3(f) (relating to termination by the Company without Cause), 3(g) (relating to termination after a Change in Control), or this Agreement expires at
the end of the Agreement Term without being renewed by the Company, then, in addition to the amounts payable in accordance with paragraph 4(a): 

  

(i) The Executive (or, in the event of death after the commencement of receipt of Severance Payments, his beneficiary) shall receive Severance Payments
from the Company for the Severance Period. The annual rate of Severance Payments shall be equal to the Aggregate Compensation Amount, and shall be payable in arrears in monthly or more frequent installments. For purposes of this subparagraph (i),
the term “Aggregate Annual Compensation” shall mean the sum of (A) and (B) below: 
  
 (A) The Executive’s annual Salary rate in effect on the date immediately prior to the Executive’s Date of Termination. 
  
 (B) The Executive’s target annual bonus amount (as described in paragraph 2(b)) for the year in which the Date of
Termination occurs. 
  
 For purposes of paragraphs (A) and (B)
above, if any portion of the Executive’s Salary or bonus has been reduced to reflect elective deferrals by the Executive, the amounts included in Salary and bonus shall be determined without regard to those deferrals. The “Severance
Period” will be the period beginning on the Date of Termination and ending on the earlier to occur of: 
  
 (I) the later of the last day of the Agreement Term or the two-year anniversary of the Date of Termination; or 
  
 (II) the date, if any, of a material breach by the Executive of the
provisions of paragraph 8, paragraph 9, paragraph 10, or paragraph 11. 
  
 (ii) The Executive shall receive payment of the annual bonus and quarterly bonus (as described in paragraph 2(b) and 2(c)) for the performance period in which his Date of Termination occurs, based on actual performance for the entire
period, and payable at the same time as it is payable for other participants in the bonus plan; provided, however, that it shall be subject to a pro-rata reduction for the portion of the performance period following the Date of Termination.

  
 (iii) The exercise restrictions with respect to stock options
granted to the Executive by the Company shall lapse, and the options shall become fully vested and exercisable as of the Date of Termination. The portion of any stock option granted to the Executive that is exercisable immediately prior to the Date
of Termination, as well as the portion of any stock option that becomes exercisable by reason of this subparagraph (iii), shall remain exercisable for the Extended Exercise Period (as defined below), but in no event later than the date fixed for
expiration of the option (determined without regard to Executive’s termination of employment). The “Extended Exercise Period” shall be the period beginning on the Date of Termination and ending on the later of the date that is five
years after the Date of Termination or the date that is the number of days after the Date of Termination that is equal to the number of days that the Executive was employed by the Company between the Effective Date and the Date of Termination.

  
 (iv) All restricted stock awards shall fully vest immediately
and all restrictions shall lapse. 
  

 12 

 (v) The Executive and his family members shall be entitled to receive the maximum level of medical
benefits afforded to senior executives who have retired or terminated employment, but no less than 18 months of Company-paid coverage, with the period of such medical benefit coverage being counted toward the Company’s obligation to provide
COBRA medical continuation coverage (as described in section 4980B of the Internal Revenue Code of 1986, as amended (if any). 
  
 In no event, however, shall the Executive be entitled to receive any amounts, rights, or benefits under this paragraph 4(d) unless he executes a release
of claims. 
  

	(e)	Except as may be otherwise specifically provided in an amendment of this paragraph 4(e) adopted in accordance with paragraph 12, the Executive’s rights under this paragraph 4
shall be in lieu of any benefits that may be otherwise payable to or on behalf of the Executive pursuant to the terms of any severance pay arrangement of the Company or any Subsidiary or any other, similar arrangement of the Company or any
Subsidiary providing benefits upon involuntary termination of employment. This paragraph 4(e) shall not be construed to adversely affect the Executive’s rights under the terms of any option on stock of the Company or any other award based on
the stock of the Company. 

  
 5. Duties on
Termination. Subject to the terms and conditions of this Agreement, during the period beginning on the date of delivery of a Notice of Termination, and ending on the Date of Termination, the Executive shall continue to perform his duties as set
forth in this Agreement, and shall also perform such services for the Company as are necessary and appropriate for an effective transition to the Executive’s successor, if any. Notwithstanding the foregoing provisions of this paragraph 5, the
Company may suspend the Executive from performing his duties under this Agreement (including, without limitation, his duties as a member of the Board of Directors of the Company or any Subsidiary) following the delivery of a Notice of Termination
providing for the Executive’s resignation, or delivery by the Company of a Notice of Termination providing for the Executive’s termination of employment for any reason; provided, however, that during the period of suspension (which shall
end on the Date of Termination), the Executive shall continue to be treated as employed by the Company for other purposes, and his rights to compensation or benefits shall not be reduced by reason of the suspension. 
  
 6. Return of Property. Following the Date of Termination, the
Executive agrees to return to the Company any keys, credit cards, passes, confidential documents or material, or other property belonging to the Company, and to return all writings, files, records, correspondence, notebooks, notes and other
documents and things (including any copies thereof) containing any Confidential Information ; provided, however, that the Executive shall be entitled to retain a copy of any rolodex or other compilation maintained by him of the names of business
contacts with their addresses, telephone numbers and similar information. The Executive agrees to represent in writing to the Company upon termination of employment that he has complied with the foregoing provisions of this paragraph 6 and that he
will comply with paragraphs 8, 9, 10, 11, and 12. 
  
 7.
Mitigation, Alienation, and Set-Off. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise. The Company shall be entitled to set off against amounts
payable to the Executive 

  

 13 

 
any amounts owed to the Company by the Executive, but the Company shall not be entitled to set off against the amounts payable to the Executive under this
Agreement any amounts earned by the Executive in other employment after termination of his employment with the Company, or any amounts which might have been earned by the Executive in other employment had he sought such other employment. This
Agreement is personal to the Executive and may not be assigned by the Executive without the written consent of the Company. The interests of the Executive under this Agreement are not subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Executive or the Executive’s beneficiary. However, to the extent that rights or benefits under this Agreement otherwise survive the Executive’s
death, the Executive’s heirs and estate shall succeed to such rights and benefits pursuant to the Executive’s will or the laws of descent and distribution; provided that the Executive shall have the right at any time and from time to time,
by notice delivered to the Company, to designate or to change the beneficiary or beneficiaries with respect to such benefits. 
  
 8. Confidential Information. Each Item and all Confidential Information (both as defined below) that comes into his possession by reason of the
Executive’s employment are the property of the Company or the Subsidiaries and shall not be used by the Executive in any way except in the course of his employment by, and for the benefit of the Company or the Subsidiaries. The Executive will
not remove any Items from premises owned or leased by the Company or the Subsidiaries except as his duties shall require, and upon termination of his employment, all Items will be turned over to the Company. The Executive will preserve as
confidential all Confidential Information that has been or may be obtained by him. The Executive will not, without written authority from the Company, use for his own benefit or purposes, or disclose to others, either during his employment or
thereafter, except as required by his employment with the Company, any Confidential Information or any copy or notes made from any Item embodying Confidential Information. The Executive understands that his obligations with respect to Confidential
Information shall continue even after termination of his employment with the Company. These restrictions concerning use and disclosure of Confidential Information shall not apply to information which is or becomes publicly known by lawful means, or
comes into his possession from sources not under an obligation of confidentiality to the Company or the Subsidiaries. 
  

	(a)	“Confidential Information” means information relating to the present or planned business of the Company or the Subsidiaries which has not been released publicly by
authorized representatives of the Company or the Subsidiaries. The Executive understands that Confidential Information may include, for example, Trade Secrets, Inventions, know-how and products, customer, patient, supplier and competitor
information, sales, pricing, cost, and financial data, research, development, marketing and sales programs and strategies, manufacturing, marketing and service techniques, processes and practices, and regulatory strategies. The Executive understands
further that Confidential Information also includes all information received by the Company or the Subsidiaries under an obligation of confidentiality to a third party. 

  

	(b)	“Items” include documents, reports, drawings, photographs, designs, specifications, formulae, plans, samples, research or development information, prototypes, tools,
equipment, proposals, marketing or sales plans, customer information, customer lists, 

  

 14 

 patient lists, patient information, regulatory files, financial data, costs, pricing information,
supplier information, written, printed or graphic matter, or other information and materials that concern the Company’s or the Subsidiaries’ business that come into his possession or about which the Executive has knowledge by reason of his
employment. 
  

	(c)	“Trade Secrets” include all information encompassed in all Items, and in all manufacturing processes, methods of production, concepts or ideas, to the extent that such
information has not been released publicly by duly authorized representatives of the Company or the Subsidiaries. 

  
 9. Non-Disparagement. The Executive agrees that, while he is employed by the Company, and after his Date of Termination, he shall not make any
false, defamatory or disparaging statements about the Company, the Subsidiaries, or the officers or directors of the Company or the Subsidiaries that are reasonably likely to cause material damage to the Company, the Subsidiaries, or the officers or
directors of the Company or the Subsidiaries. While the Executive is employed by the Company, and after his Date of Termination, the Company agrees, on behalf of itself and the Subsidiaries, that neither the officers nor the directors of the Company
or the Subsidiaries shall make any false, defamatory or disparaging statements about the Executive that are reasonably likely to cause material damage to the Executive. 
  
 10. Noncompetition. The Executive understands that any entrusting of Confidential Information to him by the Company
is done in reliance on a confidential relationship arising out of his employment with the Company. The Executive further understands that Confidential Information that the Executive may acquire or to which the Executive may have access, especially
with regard to research and development projects and findings, formulae, designs, formulation, processes, the identity of suppliers, customers and patients, methods of manufacture, and cost and pricing data is of great value to the Company. In
consequence of such entrusting and such consideration, the Executive will not, directly or indirectly, for a period of two years after the Date of Termination: (i) render services to any Competing Organization in connection with any Competing
Product within such geographic limits as the Company and such Competing Organization are, or would be, in actual competition when such rendering of services might potentially involve the disclosure or use of Confidential Information or Trade
Secrets; or (ii) provide advice as to investment in a Competitive Business (including, without limitation, advice with respect to the purchase, sale, or operation of such business, or advice with respect to financing or other economic structuring of
such business). The Executive understands that services described in the preceding sentence, including without limitation those rendered to such Competing Organization in an executive, scientific, administrative, or consulting capacity in connection
with Competing Products are in support of actual competition in various geographic areas and thus fall within the prohibition of this Agreement regardless of where such services physically are rendered. 
  

	(a)	“Competing Products” means products, processes, or services of any person or organization other than the Company, in existence or under development, which are
substantially the same, may be substituted for, or applied to substantially the same end use as the products, processes or services with which the Executive works during the time 

  

 15 

 of his employment with the Company or about which the Executive acquires Confidential Information through
his work with the Company. 
  

	(b)	“Competing Organization” means persons or organizations, including himself, engaged in, or about to become engaged in, research or development, production, distribution,
marketing, providing or selling of a Competing Product. 

  

	(c)	“Competitive Business” means any business in which the Company or any of the Subsidiaries was engaged during the 12-month period prior to the Executive’s Date of
Termination, any business if the Company or any Subsidiary has devoted material resources to entering into such business during such 12-month period prior to the Date of Termination, and any business to the extent that it is engaged in the investing
in or acquisition of all or a portion of the assets or stock of the Company or the Subsidiaries. 

  
 Executive has the right to pursue employment with any healthcare company or entity that he views as non-competitive within the definitions set forth above, subject to Company approval (which approval shall not be
unreasonably withheld). Should the parties fail to mutually agree, arbitration will be undertaken under the provisions of Section 23. 
  
 11. Solicitation of Customers, Suppliers and Employees. While he is employed by the Company, and for a period of 24 months after the
Executive’s Date of Termination for any reason: 
  

	(a)	The Executive shall not solicit or attempt to solicit any party who is then or, during the 12-month period prior to such solicitation or attempt by the Executive was (or was
solicited to become), a customer or supplier of the Company or Affiliate, provided that the restriction in this paragraph 11(a) shall not apply to any activity on behalf of a business that is not a Competing Organization. 

 

	(b)	The Executive shall not solicit, entice, persuade or induce any individual who is employed by the Company or the Subsidiaries (or was so employed within 90 days prior to the
Executive’s action) to terminate or refrain from renewing or extending such employment or to become employed by or enter into contractual relations with any other individual or entity other than the Company or the Subsidiaries, and the
Executive shall not approach any such employee for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity. 

  
 12. Inventions. With respect to Inventions and related matters, the
Executive and the Company agree as follows: 
  

	(a)	All Inventions related to the present or planned business of the Company, which are conceived or reduced to practice by the Executive, either alone or with others, during the period
of his employment or during a period of one hundred twenty (120) days after termination of such employment, whether or not done during his regular working hours, are the sole property of the Company. The provisions of this paragraph 12(a) shall not
apply to an invention for which no equipment, supplies, facilities or trade secret information of the Company was used and which was developed entirely on his own time, unless (A) the invention relates (i) to the business of the Company, or (ii) to
his 

  

 16 

 actual or demonstrably anticipated research or development for the Company, or (B) the invention results
from any work performed by the Executive for the Company. 
  

	(b)	The Executive will disclose promptly and in writing to the Company, through the General Counsel of the Company, all Inventions which are covered by this Agreement, and the Executive
agree to assign to the Company or its nominee all his right, title, and interest in and to such Inventions. The Executive agrees not to disclose any of these Inventions to others, without the express consent of the Company, except as required by his
employment. 

  

	(c)	The Executive will, at any time during or after his employment, on request of the Company, execute specific assignments in favor of the Company or its nominee of his interest in and
to any of the Inventions covered by this Agreement, as well as execute all papers, render all assistance, and perform all lawful acts which the Company considers necessary or advisable for the preparation, filing, prosecution, issuance, procurement,
maintenance or enforcement of patent applications and patents of the United States and foreign countries for these Inventions, and for the transfer of any interest the Executive may have. The Executive will execute any and all papers and documents
required to vest title in the Company or its nominee in the above Inventions, patent applications, patents, and interests. 

  

	(d)	The Executive understands that if the Executive is not employed by the Company at the time the Executive is requested to execute any document under paragraph 12(a), the Executive
shall receive fifty dollars ($50.00) for the execution of each document, and one hundred fifty dollars ($150.00) per day of each day or portion thereof spent at the request of the Company in the performance of acts pursuant to paragraph 12(a), plus
reimbursement for any out-of-pocket expenses incurred by the Executive at the Company’s request in such performance. 

  

	(e)	The Executive further understands that the absence of a request by the Company for information, or for the making of an oath, or for the execution of any document, shall in no way
be construed to constitute a waiver of the Company’s rights under this Agreement. 

  

	(f)	The Executive has disclosed to the Company all continuing obligations which the Executive has with respect to the assignment of Inventions to any previous employers, and the
Executive claims no previous unpatented Inventions as his own, except for those which have been reduced to practice and which are shown on a schedule, if any, attached to this Agreement. The Executive understands that the Company does not seek any
confidential information which the Executive may have acquired from a previous employer, and the Executive will not disclose any such information to the Company. 

  

	(g)	“Invention” means procedures, systems, machines, methods, processes, uses, apparatuses, compositions of matter, designs or configurations, computer programs of any kind,
or any improvements of the foregoing, discovered, conceived, reduced to practice, developed, made, or produced, and shall not be limited to the meaning of “Invention” under the United States patent laws. 

  

 17 

 13. Copyright. All writings and other works which may be copyrighted (including computer programs)
which are related to the present or planned business of the Company and are prepared by the Executive during his employment by the Company shall be, to the extent permitted by law, works made for hire, and the authorship and copyright of the work
shall be in the Company’s name. To the extent that such writings and works are not works for hire, the Executive agrees to the waiver of “moral rights” in such writings and works, and to assign to the Company all his right, title and
interest in and to such writings and works, including copyright. 
  
 14. Images. The Executive will permit the Company and its agents to use and distribute any pictorial images which are taken of him during his employment by the Company as often as desired for any lawful purpose. The Executive waives
all rights of prior inspection or approval and releases the Company and its agents from any and all claims or demands which the Executive may have on account of the lawful use or publication of such pictorial images. 
  
 15. Assistance with Claims. The Executive agrees that, for the period
beginning on the Effective Date, and continuing for a reasonable period, not less than two years after the Executive’s Date of Termination, the Executive will assist the Company and the Subsidiaries in the defense of any claims that may be made
against the Company and the Subsidiaries, and will assist the Company and the Subsidiaries in the prosecution of any claims that may be made by the Company or the Subsidiaries, to the extent that such claims may relate to services performed by the
Executive for the Company and the Subsidiaries. The Executive agrees to promptly inform the Company if he becomes aware of any lawsuits involving such claims that may be filed against the Company or any Subsidiary. The Company agrees to provide
legal counsel to the Executive in connection with such assistance (to the extent legally permitted), and to reimburse the Executive for all of the Executive’s reasonable out-of-pocket expenses associated with such assistance, including travel
expenses. For periods after the Executive’s employment with the Company terminates, the Company agrees to provide reasonable compensation to the Executive for such assistance. The Executive also agrees to promptly inform the Company if he is
asked to assist in any investigation of the Company or the Subsidiaries (or their actions) that may relate to services performed by the Executive for the Company or the Subsidiaries, regardless of whether a lawsuit has then been filed against the
Company or the Subsidiaries with respect to such investigation. 
  
 16. Equitable Remedies. The Executive acknowledges that the Company would be irreparably injured by a violation of paragraph 8, paragraph 9, paragraph 10, and paragraph 11, and he agrees that the Company, in addition to any other
remedies available to it for such breach or threatened breach, shall be entitled to a preliminary injunction, temporary restraining order, or other equivalent relief, restraining the Executive from any actual or threatened breach of paragraph 8,
paragraph 9, paragraph 10, or paragraph 11. If a bond is required to be posted in order for the Company to secure an injunction or other equitable remedy, the parties agree that said bond need not be more than a nominal sum. The Company acknowledges
that the Executive would be irreparably injured by a violation of paragraph 9, and he agrees that the Executive, in addition to any other remedies available to it for such breach or threatened breach, shall be entitled to a preliminary injunction,
temporary restraining order, or other equivalent relief, restraining the Company from any actual or threatened breach of paragraph 9. If a bond is required to be posted in order for the Executive to secure an injunction or other equitable remedy,
the parties agree that said bond need not be more than a nominal sum. 
  

 18 

 17. Amendment. This Agreement may be amended or cancelled only by mutual agreement of the parties
in writing without the consent of any other person. So long as the Executive lives, no person, other than the parties hereto, shall have any rights under or interest in this Agreement or the subject matter hereof. 
  
 18. Applicable Law. The provisions of this Agreement shall be
construed in accordance with the laws of the State of Illinois, without regard to the conflict of law provisions of any state. All disputes shall be litigated or arbitrated (whichever is applicable) in Chicago, Illinois. 
  
 19. Severability. The invalidity or unenforceability of any provision
of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, and this Agreement will be construed as if such invalid or unenforceable provision were omitted (but only to the extent that such provision
cannot be appropriately reformed or modified). 
  
 20. Waiver
of Breach. No waiver by any party hereto of a breach of any provision of this Agreement by any other party, or of compliance with any condition or provision of this Agreement to be performed by such other party, will operate or be construed as a
waiver of any subsequent breach by such other party of any similar or dissimilar provisions and conditions at the same or any prior or subsequent time. The failure of any party hereto to take any action by reason of such breach will not deprive such
party of the right to take action at any time while such breach continues. 
  
 21. Successors. This Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns and upon any person acquiring, whether by merger, consolidation, purchase of assets
or otherwise, all or substantially all of the Company’s assets and business, and the successor shall be substituted for the Company under this Agreement. The Company will require any successor to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform it if no such assignment or succession had taken place. 
  
 22. Notices. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by
registered or certified mail, return receipt requested, postage prepaid (provided that international mail shall be sent via overnight or two-day delivery), or sent by facsimile or prepaid overnight courier to the parties at the addresses set forth
below (or such other addresses as shall be specified by the parties by like notice). Such notices, demands, claims and other communications shall be deemed given: 
  

	(a)	in the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery; 

  

	(b)	in the case of certified or registered U.S. mail, five days after deposit in the U.S. mail; or 

  

	(c)	in the case of facsimile, the date upon which the transmitting party received confirmation of receipt by facsimile, telephone or otherwise; 

  
 provided, however, that in no event shall any such communications be deemed to be given later
than the date they are actually received. Communications that are to be delivered by the U.S. 
  

 19 

 mail or by overnight service or two-day delivery service are to be delivered to the addresses set forth below:

  
 to the Company: 
  
 Baxter International Inc. 
 One Baxter Parkway 
 DF2-2W 
 Deerfield, IL 60015 
 Attention: Lead Director 
  
 or to the Executive: 
  
 All notices to the Company shall be directed to the attention of General Counsel of the Company, with a copy to the Secretary of the Company. Each party, by written
notice furnished to the other party, may modify the applicable delivery address, except that notice of change of address shall be effective only upon receipt. 
  

23. Arbitration of All Disputes. Any controversy or claim arising out of or relating to this Agreement (or the breach thereof) shall be settled
by final, binding and non-appealable arbitration in Chicago, Illinois by three arbitrators. Except as otherwise expressly provided in this paragraph 23, the arbitration shall be conducted in accordance with the rules of the Center for Public
Resources (“CPR”) then in effect. One of the arbitrators shall be appointed by the Company, one shall be appointed by the Executive, and the third shall be appointed by the first two arbitrators. If the first two arbitrators cannot agree
on the third arbitrator within 30 days of the appointment of the second arbitrator, then the third arbitrator shall be appointed by CPR. Except as agreed upon by the Executive and the Company, each of the arbitrators shall be (i) an attorney with
substantial experience representing executives and/or employers in employment matters; (ii) a former judge with substantial experience hearing employment matters involving executives and employers; or (iii) an individual with substantial human
resources experience involving executive employment matters. The arbitrator appointed by the Executive and the arbitrator appointed by the Company shall each be described by any of clauses (i), (ii), and/or (iii) above. The third arbitrator
appointed by the other two arbitrators (or by CPR), to the extent reasonably possible, shall be described by the clause(s) (i), (ii), and (iii) not applicable to the arbitrators appointed by the Executive and the Company. 
  
 24. Survival of Agreement. Except as otherwise expressly provided in
this Agreement, the rights and obligations of the parties to this Agreement shall survive the termination of the Executive’s employment with the Company. 
  

25. Entire Agreement. Except as otherwise provided herein, this Agreement, including any Exhibit(s) attached hereto, constitutes the entire
agreement between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, if any, between the parties relating to the subject matter hereof; provided, however, that nothing in this Agreement shall be
construed to limit the Company’s ability to establish and maintain policies (or require the employee to enter into an agreement) relating to confidentiality, rights to 
  

 20 

 inventions, copyrightable material, business and/or technical information, trade secrets, solicitation of employees,
interference with relationships with other businesses, competition, and other similar policies or agreement for the protection of the business and operations of the Company and the Subsidiaries. 
  
 26. Counterparts. This Agreement may be executed in two or more
counterparts, any one of which shall be deemed the original without reference to the others. 
  
 27. Acknowledgment by Executive. Except as permitted under or pursuant to Section 1(h), the Executive represents and warrants that (i) he is not, and will not become a party to any agreement, contract,
arrangement or understanding, whether of employment or otherwise, that would in any way restrict or prohibit him from undertaking or performing his duties in accordance with this Agreement or that restricts his ability to be employed by the Company
in accordance with this Agreement; (ii) he is not presently engaged in, and will not during the Agreement Term enter into any employment or agency relationship with any third party whose interests might conflict with those of the Company or the
Subsidiaries; (iii) he is not and will not during the Agreement Term possess any significant interest, directly, through his family, or through organizations or trusts controlled by him, in any third party whose interests might conflict with those
of the Company or its subsidiaries; (iv) his employment by the Company will not violate the terms of any policy of any prior employer of the Executive regarding competition; and (v) his position with the Company, as described in this Agreement, will
not require him to improperly use any trade secrets or confidential information of any prior employer, or any other person or entity for whom he has performed services. 
  
 28. Approval by Board. The Board shall consider approval of this Agreement within three business days after
the date of this Agreement. The effectiveness of the Company’s execution of this Agreement is contingent on the Agreement being approved by the Board at the time specified in this paragraph 28, and the Agreement shall be void if such
approval is not given. 
  
 The Executive has
hereunto set his hand, and the Company has caused these presents to be executed in its name and on its behalf, all as of the date first stated above. 
  

	
	
	/s/ Robert L. Parkinson, Jr.
	

	Robert L. Parkinson, Jr.
	
	BAXTER INTERNATIONAL INC.
	
	/s/ Thomas T. Stallkamp
	

	Thomas T. Stallkamp, Lead Director

  

 21LEASE AGREEMENT

 EXHIBIT 10.1 
  
 LEASE 
  
 Between 
  
 2545 Central, LLC 
  
 And 
  
 Insmed Incorporated 

 SUMMARY OF BASIC LEASE TERMS 
  

	1.	Tenant: Insmed Incorporated 

  

	 	(a)	Tenant’s entity and jurisdiction: Virginia Corporation 

  

	 	(b)	Tenant’s federal taxpayer identification number: 54-1972729 

  

	2.	Building Address: 2590 Central Avenue 

	 	    	       Boulder, CO 80301 

  

	    	Type: Single User 

  

	3.	Demised Premises: 

  

	 	(a)	Entire Building described above containing approx. Total Rentable Square Footage: 24,595+7- 

  

	 	(b)	Suite Number: 100 

  

	4.	Initial Lease Term: 

  

	 	(a)	Period: Approximately 3 years, 11 months 

  

	 	(b)	Commencement Date: April 1,2004 

  

	 	(c)	Expiration Date: February 29, 2008 

  

	5.	Basic Rent: 

  

	    	Rent Schedule: 

  

							
	 April 1, 2004
	 	         to        
	 	 December 31, 2004
	 	 $26,072.00 per month

	 January 1, 2005
	 	 to
	 	 December 31, 2005
	 	 $26,854.00 per month

	 January 1, 2006
	 	 to
	 	 December 31, 2006
	 	 $27,659.00 per month

	 January 1, 2007
	 	 to
	 	 December 31, 2007
	 	 $28,489.00 per month

	 January 1, 2008
	 	 to
	 	 February 29, 2008
	 	 $29,344.00 per month

  

	6.	Additional Rent 

  

	    	Tenant’s Pro Rata Share (for Additional Rent): 100%. 

  

	7.	Security Deposit Amount: $29,344.00 (for Renewal Option period only) 

  
 Landlord Initials Q.1*AQ.  
 Tenant
Initials              

	8.	Place for Payments: 

  

	
	 2545 Central, LLC c/o Flatiron
 Park Company 5540 Central
 Avenue Boulder, CO 80301

  

	9.	Place for Notices: 

  

	
	 2545 Central, LLC

	 c/o Flatiron Park Company

	 5540 Central Avenue

	 Boulder, CO 80301

	 Fax No.: 303-442-0265

	 Telephone No.: 303-442-6995

  

	
	 Insmed Incorporated
 2590 Central Avenue
 Boulder, CO 80301
 Fax No.:
                    
 Telephone No.:                     

  

	
	 copy to: Packard & Dierking, LLC
 2595 Canyon Blvd., Suite 200 Boulder, CO 80302 Attn:
 David M. Packard Fax No.: 303-447-0451 Telephone No.:
 303-447-0450

	
	 copy to: Insmed Incorporated
 4851 Lake Brook Drive Glen Allen, VA 23060 Attn:
 Executive V,P. & Chief
 Operating Officer Fax No.: 804-565-3510 Telephone
 No.:
804-565-3022

  

	10.	Permitted Use(s) by Tenant: Manufacturing, research and development and associated lab and administrative offices. 

  

	11.	Broker(s): None 

  

	12.	Utilities: Direct 

  

	13.	Renewal Option: Tenant will have a one-time option to renew the Lease for an additional five (5) year term under the same terms and conditions as set forth in the Lease so renewed,
with the rent rate (excluding Additional Rent) as set forth below in the following RENT SCHEDULE FOR RENEWAL. Such option is governed by Section 3.4 of the Lease. 

  
 RENT SCHEDULE FOR RENEWAL 
  

							
	 March 1, 2008
	 	        to        	 	 December 31, 2008
	 	 $29,344.00 per month

	 January 1, 2009
	 	to	 	 December 31, 2009
	 	 $30,371.00 per month

	 January 1, 2010
	 	to	 	 December 31, 2010
	 	 $31,434.00 per month

	 January 1, 2011
	 	to	 	 December 31, 2011
	 	 $32,534.00 per month

	 January 1, 2012
	 	to	 	 December 31, 2012
	 	 $33,673.00 per month

	 January 1, 2013
	 	to	 	 February 28, 2013
	 	 $34,581.00 per month

  

	14.	Other: 

  
 a. This lease will not become effective, if at all, until the occurrence of the following conditions precedent, which conditions must be satisfied on or before the Commencement Date designated above: 
  
 Landlord Initials 
 Tenant Initials 

 1. Landlord and Baxter Hemoglobin Therapeutics Inc. executing an agreement releasing Baxter Hemoglobin
Therapeutics Inc., Baxter International, Inc. (which entities along with Baxter International, Inc. predecessor Somatogen, Inc. are hereinafter referred to as “Baxter5’) from, their obligations for the Demised Premises. Any release shall be based on terms and condition satisfactory to the Landlord, in its sole
discretion. If a release agreement cannot be reached between the Landlord and Baxter, then this Lease shall be null and void. 
  
 2. Tenant’s delivery to Landlord of the Letter of Credit in the substance and form required by Section 4.8.1 of the Lease on or before March 26,2004.
If the Letter of Credit is not received by Landlord by March 26, 2004, then this Lease shall be null and void. 
  
 3. Tenant’s receipt of an executed Bill of Sale from Baxter in form satisfactory to Tenant conveying to Tenant the property described on Exhibit M.

  
 Landlord Initials 
 Tenant Initials 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE

	 ARTICLE 1
	 	 GENERAL
	  	1
	 1.1
	 	 Consideration
	  	1
	 1.2
	 	 Exhibits and Addenda to Lease
	  	1
			
	 ARTICLE 2
	 	 DEFINITIONS; DEMISE OF PREMISES
	  	1
	 2.1
	 	 Demise
	  	1
	 2.2
	 	 Demised Premises
	  	1
	 2.3
	 	 Square Footage and Address
	  	2
	 2.4
	 	 Land
	  	2
	 2.5
	 	 Building
	  	2
	 2.6
	 	 Improvements
	  	2
	 2.7
	 	 Property
	  	2
	 2.8
	 	 Common Facilities
	  	2
	 2.9
	 	 Parking Area
	  	2
	 2.10
	 	 Use of Common Facilities and Parking Area
	  	2
	 2.11
	 	 Covenant of Quiet Enjoyment
	  	3
	 2.12
	 	 Condition of Demised Premises
	  	3
	 2.13
	 	 Tenant’s Equipment
	  	3
			
	 ARTICLE 3
	 	 TERM OF LEASE
	  	3
	 3.1
	 	 Lease Term
	  	3
	 3.2
	 	 Commencement Date
	  	3
	 3.3
	 	 Early Occupancy or Entry
	  	3
	 3.4
	 	 Option to Renew
	  	3
	 	 	 3.4.1    Option Letter of Credit
	  	4
			
	 ARTICLE 4
	 	 RENT AND OTHER AMOUNTS PAYABLE
	  	4
	 4.1
	 	 Basic Rent
	  	4
	 4.2
	 	 Monthly Rental
	  	4
	 4.3
	 	 Place of Payments
	  	4
	 4.4
	 	 Lease a Net Lease and Rent Absolute
	  	5
	 4.5
	 	 Additional Rent
	  	5
	 4.6
	 	 Tenant’s Pro Rata Share
	  	5
	 4.7
	 	 Monthly Deposits for Taxes, Insurance, and Common Facilities Charges
	  	5
	 4.8
	 	 Security Deposit
	  	6
	 	 	 4.8.1    Letter of Credit
	  	6
	 	 	 4.8.2    Release of Letter of Credit
	  	7
	 	 	 4.8.3     Secured Rent Obligation
	  	7
	 4.9
	 	 General Provisions as to Monthly Deposits and Security Deposit
	  	7

  

 i 

					
	 4.10
	 	 Rent Regulations
	  	7
			
	 ARTICLE 5
	 	 TAXES AND ASSESSMENTS
	  	7
	 5.1
	 	 Covenant to Pay Taxes and Assessments
	  	7
	 5.2
	 	 Proration at Commencement and Expiration of Term
	  	7
	 5.3
	 	 Special Assessments
	  	8
	 5.4
	 	 New or Additional Taxes
	  	8
	 5.5
	 	 Landlord’s Sole Right to Contest Taxes
	  	8
			
	 ARTICLE 6
	 	 INSURANCE
	  	8
	 6.1
	 	 Casualty Insurance
	  	8
	 6.2
	 	 Liability Insurance
	  	8
	 6.3
	 	 Other Insurance
	  	9
	 6.4
	 	 General Provisions Respecting Insurance
	  	9
	 6.5
	 	 Cooperation in the Event of Loss
	  	9
			
	 ARTICLE
	 	 UTILITY, OPERATING, MAINTENANCE AND REPAIR EXPENSES
	  	9
	 7.1
	 	 Utility Charges
	  	9
	 7.2
	 	 Common Facilities Charges
	  	9
	 7.3
	 	 Tenant’s Maintenance Obligation
	  	10
	 7.4
	 	 Landlord’s Maintenance Obligation
	  	11
			
	 ARTICLES
	 	 OTHER COVENANTS OF TENANT
	  	11
	 8.1
	 	 Limitation on Use by Tenant
	  	11
	 8.2
	 	 Compliance with Laws
	  	11
	 8.3
	 	 Compliance with Insurance Requirements
	  	11
	 8.4
	 	 No Waste or Impairment of Value
	  	11
	 8.5
	 	 No Overloading
	  	11
	 8.6
	 	 No Nuisance, Noxious or Offensive Activity
	  	12
	 8.7
	 	 No Annoying Lights, Sounds or Odors
	  	12
	 8.8
	 	 No Unsightliness
	  	12
	 8.9
	 	 No Animals
	  	12
	 8.10
	 	 Restriction on Signs and Exterior Lighting
	  	12
	 8.11
	 	 No Violation of Covenants
	  	12
	 8.12
	 	 Restriction on Changes and Alterations
	  	12
	 8.13
	 	 No Mechanic’s Liens
	  	13
	 8.14
	 	 No Other Encumbrances
	  	13
	 8.15
	 	 Subordination to Landlord Mortgages
	  	13
	 8.16
	 	 Assignment or Subletting
	  	14
	 8.17
	 	 Annual Financial Statements
	  	15
	 8.18
	 	 Payment of Other Taxes
	  	15

  

 ii 

					
	 8.19
	  	 Estoppel Certificates
	  	15
	 8.20
	  	 Landlord Right to Inspect and Show Premises and to Install “For Sale” Signs
	  	15
	 8.21
	  	 Landlord Right to Renovate, Expand or Modify Building
	  	15
	 8.22
	  	 Landlord Title to Fixtures, Improvements and Equipment
	  	16
	 8.23
	  	 Removal of Tenant’s Equipment
	  	16
	 8.24
	  	 Tenant Indemnification of Landlord
	  	16
	 8.25
	  	 Liability of Landlord
	  	17
	 8.26
	  	 Release upon Transfer by Landlord
	  	17
	 8.27
	  	 Rules and Regulations
	  	17
	 8.28
	  	 Monitoring Equipment
	  	17
			
	 ARTICLE 9
	  	 ENVIRONMENTAL MATTERS
	  	17
	 9.1
	  	 Definitions
	  	17
	 	  	 9.1.1    Hazardous Material
	  	17
	 	  	 9.1.2    Environmental Requirements
	  	18
	 	  	 9.1.3    Environmental Damages
	  	18
	 9.2
	  	 Tenant’s Obligation to Indemnify, Defend and Hold Harmless
	  	18
	 9.3
	  	 Tenant’s Obligation to Remediate
	  	19
	 9.4
	  	 Notification
	  	19
	 9.5
	  	 Negative Covenants
	  	19
	 	  	 9.5.1    No Hazardous Material on Demised Premises
	  	19
	 	  	 9.5.2    No Violations of Environmental Requirements
	  	19
	 9.6
	  	 Landlord’s Right to Inspect and to Audit Tenant’s Records
	  	19
	 9.7
	  	 Landlord’s Right to Remediate
	  	20
	 9.8
	  	 Survival of Environmental Obligations
	  	20
	 9.9
	  	 Environmental Certifications
	  	20
			
	 ARTICLE 10
	  	 DAMAGE OR DESTRUCTION
	  	21
	 10.1
	  	 Damage to Demised Premises
	  	21
	 10.2
	  	 Options to Terminate if Damage to Demised Premises is Substantial
	  	21
	 10.3
	  	 Damage to Building
	  	21
	 10.4
	  	 Obligations to Repair and Restore
	  	21
	 10.5
	  	 Application of Insurance Proceeds
	  	22
			
	 ARTICLE 11
	  	 CONDEMNATION
	  	22
	 11.1
	  	 Taking - Substantial Taking — Insubstantial Taking
	  	22
	 11.2
	  	 Termination on Substantial Taking
	  	22
	 11.3
	  	 Restoration on Insubstantial Taking
	  	22
	 11.4
	  	 Right to Award
	  	22

  

 iii 

					
	 ARTICLE 12
	 	 DEFAULTS BY TENANT
	  	23
	 12.1
	 	 Failure to Pay Rent or Other Amounts
	  	23
	 12.2
	 	 Nonoccupancy of Demised Premises
	  	23
	 12.3
	 	 Transfer of Interest Without Consent
	  	23
	 12.4
	 	 Execution and Attachment Against
	  	23
	 12.5
	 	 Bankruptcy or Related Proceedings
	  	23
	 12.6
	 	 Violation of Lease Terms
	  	23
			
	 ARTICLE 13
	 	 LANDLORD’S REMEDIES
	  	24
	 13.1
	 	 Remedies Generally
	  	24
	 	 	 13.1.1    Cure by Landlord
	  	24
	 	 	 13.1.2    Termination of Lease and Damages
	  	24
	 	 	 13.1.3    Repossession and Reletting
	  	24
	 	 	 13.1.4    Waiver of Landlord Liens
	  	25
	 	 	 13.1.5    Suits by Landlord
	  	25
	 	 	 13.1.6    Recovery of Landlord Enforcement Costs
	  	25
	 	 	 13.1.7    Administrative Late Charge
	  	25
	 	 	 13.1.8    Interest on Past-Due Payments and Advances
	  	25
	 	 	 13.1.9    Landlord’s Bankruptcy
	  	26
	 13.2
	 	 Remedies Cumulative
	  	26
	 13.3
	 	 Drawing on Letter of Credit
	  	26
			
	 ARTICLE 14
	 	 SURRENDER AND HOLDING OVER
	  	26
	 14.1
	 	 Surrender upon Lease
	  	26
	 14.2
	 	 Holding Over
	  	26
	 14.3
	 	 Restoration Obligations
	  	26
			
	 ARTICLE 15
	 	 MISCELLANEOUS
	  	27
	 15.1
	 	 No Implied Waiver
	  	27
	 15.2
	 	 Survival of Provisions
	  	27
	 15.3
	 	 Covenants Independent
	  	27
	 15.4
	 	 Covenants as Conditions
	  	27
	 15.5
	 	 Tenant’s Remedies
	  	27
	 15.6
	 	 Binding Effect
	  	28
	 15.7
	 	 Short Form Lease
	  	28
	 15.8
	 	 Notices and Demands
	  	28
	 15.9
	 	 Force Majeure
	  	28
	 15.10
	 	 Time of the Essence
	  	28
	 15.11
	 	 Captions for Convenience
	  	28
	 15.12
	 	 Severability
	  	29
	 15.13
	 	 Governing Law and Venue
	  	29
	 15.14
	 	 Entire Agreement
	  	29
	 15.15
	 	 No Oral Amendment or Modifications
	  	29

  

 iv 

					
	 15.16
	  	 Real Estate Brokers
	  	29
	 15.17
	  	 Relationship of Landlord and Tenant
	  	29
	 15.18
	  	 Authority of Tenant
	  	29
	 13.3
	  	 Drawing on Letter of Credit
	  	26
	 14.2
	  	 Holding Over
	  	26
	 14.3
	  	 Restoration Obligations
	  	26

  

 v 

 LEASE 
  
 This Lease is made this 25th day of March, 2004, between 2545 Central, LLC, a Colorado limited liability company (“Landlord”), whose address is c/o Flatiron Park Company, 5540 Central Avenue, Boulder, Colorado 80301, and Insmed Incorporated, a
Delaware corporation (“Tenant”), whose address is 2590 Central Avenue Boulder, Colorado 80301. 
  
 ARTICLE 1 
  
 GENERAL 
  
 1.1 Consideration. Landlord
enters into this Lease in consideration of the payment by Tenant of the rents herein reserved and the keeping, observance and performance by Tenant of the covenants and agreements of Tenant herein contained. 
  
 1.2 Exhibits and Addenda to Lease. The Exhibits and Addenda listed
below shall be attached to this Lease and be deemed incorporated in this Lease by this reference. In the event of any inconsistency or conflict between such Exhibits and Addenda and the terms and provisions of this Lease, the terms and provisions of
the Exhibits and Addenda shall control. The Attachments, Exhibits and Addenda to this Lease are: 
  

			
	 Summary of Basic Lease Terms

	 Exhibit A
	  	 Legal Description of Land

	 Exhibit B
	  	 Location of Demised Premises within Building

	 Exhibit C
	  	 Notice of Non-Liability for Mechanics’ Liens

	 Exhibit D
	  	 Form of Subordination, Non-Disturbance and Attornment Agreement

	 Exhibit E
	  	 Form of Sublease, Assumption and Consent Agreement

	 Exhibit F
	  	 Form of Assignment, Assumption and Consent Agreement

	 Exhibit G
	  	 Form of Estoppel Certificate

	 Exhibit H
	  	 Lease Amendments for Option Term

	 Exhibit I
	  	 Form of Letter of Credit

	 Exhibit J
	  	 Form of Draw on Letter of Credit

	 Exhibit K
	  	 Environmental Investigation

	 Exhibit L
	  	 Restoration Plans and Specifications

	 Exhibit M
	  	 Tenant’s equipment

  
 ARTICLE 2 

 
 DEFINITIONS: DEMISE OF PREMISES 
  
 2.1 Demise. Subject to the provisions, covenants and agreements herein
contained, Landlord hereby leases and demises to Tenant, and Tenant hereby leases from Landlord, the Demised Premises as hereinafter defined, for the Lease Term as hereinafter defined, subject to existing covenants, conditions, restrictions,
easements and encumbrances affecting the same. 
  
 2.2 Demised
Premises. The “Demised Premises” shall mean the space to be occupied by Tenant as depicted on Exhibit B attached hereto. The Demised Premises are the entire Building that is located on the Land, as the terms “Building”
and “Land” are hereinafter defined. 

 2.3 Square Footage and Address. The Demised Premises contains approximately the rentable floor
area set forth in the Summary of Basic Lease Terms. The address of the Demised Premises is the address set forth in the Summary of Basic Lease Terms. 
  
 2.4 Land. “Land” shall mean the parcel of real property more particularly described in Exhibit A attached hereto, as the same may
be replatted, resubdivided or adjusted from time to time by Landlord; provided, however, that Landlord shall not, without Tenant’s prior written approval, replat, resubdivide or adjust the Land in any manner that materially interferes with
Tenant’s use of the Demised Premises or its ability to carryout the Permitted Use.. 
  
 2.5 Building. “Building” shall mean the building or buildings constructed on the Land, as the same may be expanded, remodeled, reconstructed or otherwise modified from time to time by Tenant (as
permitted pursuant to this Lease) or by Landlord (with Tenant’s prior written consent, except as otherwise permitted or required pursuant to the terms of this Lease. If there is more than one building constructed on the Land, the term
“Building” shall mean collectively all buildings constructed upon the Land, 
  
 2.6 Improvements. “Improvements” shall mean the Building, the Parking Area as hereinafter defined, and all other fixtures and improvements on the Land, including landscaping thereon, but
notwithstanding anything to the contrary in this Lease (except as provided in Section 8.23), excluding Tenant’s Equipment, as defined below. 
  
 2.7 Property. “Property” shall mean the Land, the Building and the Improvements and any fixtures and personal property used in operation
and maintenance of the Land, Building and Improvements, excluding Tenant’s Equipment. 
  
 2.8 Common Facilities. “Common Facilities” shall mean all of the Property that is intended to be used by Tenant (in common with other tenants, if any), except (a) the Demised Premises and (b) the
other premises in the Building leased or held for lease to other tenants, if any. Common Facilities shall include, without limitation, the Parking Area and any walks, driveways, and, if applicable, lobby areas, halls, stairs, elevators, restrooms,
utility rooms, and janitorial closets designed for common use of Tenant and other users of space in the Building. 
  
 2.9 Parking Area. “Parking Area” shall mean that portion of the Land that is or is to be paved and otherwise improved or designated
unimproved land for the parking of motor vehicles. Landlord shall not be responsible for any injuries to any person nor any damage to any automobile, vehicle or other property that occurs in or about the Parking Area, except to the extent caused by
the gross negligence or willful misconduct of Landlord or its agents, contractors or employees. Tenant may operate multiple work shifts in the Demised Premises, and Landlord acknowledges that Tenant and Tenant’s employees, agents, invitees and
contractors may park vehicles in the Parking Area at all hours of the day. Notwithstanding the foregoing, Tenant may not park trucks or truck trailers in the Parking Area other than for short term purposes of loading and unloading. 
  
 2.10 Use of Common Facilities and Parking Area. Tenant is hereby
granted the non-exclusive right and license to use, in common with other tenants in the Building, if any, the Common Facilities, as they from time to time exist, subject to the rights of Landlord reserved herein. Tenant shall not interfere, at any
time, with the rights of Landlord and others entitled to use any part of the Common Facilities, and shall not store, either permanently or temporarily, any materials, supplies or equipment on the Common Facilities. Landlord shall have the right, at
any time, to change, reduce or otherwise alter the Common Facilities, in its sole discretion and without compensation to Tenant; provided, however, that Landlord shall 
  

 2 

 provide reasonable parking in the Parking Areas, loading areas and access to the Demised Premises to Tenant. If there are
multiple tenants in the Building, Landlord shall have the right at any time to assign spaces in the Parking Area to individual tenants, in its sole discretion, provided that Landlord shall provide a reasonable number of spaces for Tenant. Landlord
shall not be responsible for any injuries to any person nor any damage to any automobile, vehicle or other property that occurs in or about the Parking Area. Tenant shall not park nor permit the parking of any vehicles in the Parking Area overnight
without Landlord’s prior, written permission. 
  
 2.11
Covenant of Quiet Enjoyment. Landlord covenants and agrees that, provided Tenant is not in default beyond any applicable cure period, Tenant shall have quiet and peaceable possession of the Demised Premises and such possession shall not be
disturbed or interfered with by Landlord or by any person claiming by, through or under Landlord. 
  
 2.12 Condition of Demised Premises. Except as otherwise provided in this Lease (or an Exhibit or Addenda hereto), Tenant covenants and agrees that,
upon taking possession of the Demised Premises, Tenant shall be deemed to have accepted the Demised Premises “as is” and Tenant shall be deemed to have waived any warranty of condition or habitability, suitability for occupancy, use or
habitation, fitness for a particular purpose or merchantability, express or implied, relating to the Demised Premises. 
  
 2.13 Tenant’s Equipment. “Tenant’s Equipment” shall mean all trade fixtures (whether movable or attached to the real estate),
equipment, apparatus, machinery, signs, furniture, furnishings and personal property of Tenant or Tenant’s employees, agents, invitees or contractors, including, without limitation, the equipment and personal property listed on Exhibit M
hereto. Notwithstanding anything to the contrary in this Lease (except Section 8.23), Landlord acknowledges and agrees that no Tenant’s Equipment shall become the property of Landlord, or shall become part of the real estate, or shall cease
to be Tenant’s Equipment as a result of it being installed upon, affixed to or attached to real estate, the Land, the Building, the Demised Premises, or the Improvements. 
  
 ARTICLE 3 
  
 TERM OF LEASE 
  
 3.1 Lease Term. “Lease Term” shall mean the period of tune specified in the Summary of Basic Lease Terms commencing at midnight on the
Commencement Date as defined below and expiring at midnight on the Expiration Date, as specified in the Summary of Basic Lease Terms. 
  
 3.2 Commencement Date. The term “Commencement Date” shall mean the later of the Commencement Date set forth in the Summary of Basic Lease
Terms. 
  
 3.3 Early Occupancy or Entry. In the event
Landlord permits Tenant or its agents or contractors to occupy or enter the Demised Premises for any reason prior to the Commencement Date, and Tenant avails itself of such right, then Tenant shall be subject to all terms and provisions hereof.

  
 3.4 Option to Renew. Subject to requirements for
exercising same set forth in this Lease, Landlord hereby grants to Tenant a one-tune option to renew the Lease for one (1) additional five (5) year term under the same terms and conditions as set forth herein with substitution of certain provisions
with those set forth on Exhibit H hereto and with the Basic Rent as set forth on the Summary of Basic Lease Terms. Tenant shall exercise such option by giving written notice of its election to exercise; provided that (i) such written election
must be given on or before July 1, 2007, prior to the expiration of the then-existing Lease Term, and (ii) such written election shall be null and void in the event that 
  

 3 

 Tenant, at the time of Landlord’s receipt of same, is in default beyond any applicable cure period. If Tenant does
not timely provide such notice in accordance with this Section 3.4, the option shall lapse and thereafter be null and void. Upon timely exercise of such notice, the Lease shall be deemed to be extended for the additional period at the Basic Rent as
set forth herein and pursuant to all other terms and conditions set forth in the Lease. In the event of exercise of said option, any funds held by Landlord pursuant hereto shall continue to be so held subject to the terms and conditions relating to
same. Within fifteen (15) days after Landlord’s receipt of Tenant’s exercise notice, Landlord will request Quinlan Construction, or such other general contractor as is acceptable to Landlord, to provide a good faith and reasonable estimate
of the cost of Tenant’s Restoration Obligations at that tune based upon the then-existing condition of the Demised. Premises. On or before that date which is ninety (90) days prior to the commencement date of the renewal term, Tenant must
deliver to Landlord a letter of credit in the amount of the contractor’s estimate of the cost of Tenant’s Restoration Obligations but in no event less than $1,800,000.00 and in the form required by Section 3.4.1. If Tenant fails to timely
provide such letter of credit in accordance with this Section 3.4, the option shall lapse and thereafter be null and void. 
  
 3.4.1 Option Letter of Credit. In connection with, the foregoing option to renew this Lease, Tenant will deliver to Landlord a letter of
credit in the form attached hereto as Exhibit I and issued by Wachovia Bank, National Association or another financial institution reasonably acceptable to Landlord (the “Option Letter of Credit”). The Letter of Credit shall be in
an amount determined as provided in the foregoing Section 3.4. The amount of the Letter of Credit must be increased at the end of each calendar year of the Lease Term by five percent (5%) of the then-existing amount of the Letter of Credit, which
increases shall be accomplished in a manner reasonably satisfactory to Landlord. The Letter of Credit shall not be subject to cancellation for any reason (except release by Landlord in accordance herewith) or otherwise expire at any time prior to
June 30, 2013. Upon completion and performance of the Restoration ObEgations or upon an early termination of this lease which results in termination of the Restoration Obligations, Landlord covenants and agrees to promptly release the Letter of
Credit. In releasing the Letter of Credit, Landlord agrees to provide all documentation reasonably required by the issuing bank to effect such release and shall copy Tenant on any correspondence with the issuing bank and related documentation

  
 ARTICLE 4 
  
 RENT AND OTHER AMOUNTS PAYABLE 
  
 4.1 Basic Rent. Tenant covenants and agrees to pay to Landlord,
without offset, deduction or abatement, basic rent for the full Lease Term in the amount specified as or calculable from Basic Rent in the Summary of Basic Lease Terms (“Basic Rent”). 
  
 4.2 Monthly Rental. Basic Rent shall be payable monthly in advance,
without notice, in equal installments, together with installments of Additional Rent Each installment of Basic Rent shall be in the amount of monthly rent specified in the rent schedule in the Summary of Basic Lease Terms (“Monthly
Rental”). The first such monthly installment shall be due and payable on or before the Commencement Date and a like monthly installment shall be due and payable on or before the first day of each calendar month succeeding the Commencement Date
during the Lease Term, except that the rental payment for any fractional calendar month at the commencement or end of the Lease Term shall be prorated based on a thirty (30) day month. 
  
 4.3 Place of Payments. Basic Rent and all other sums payable by Tenant to Landlord under this Lease shall be paid to
Landlord at the place for payments specified in the Summary of Basic Lease Terms, or such other place as Landlord may, from time to time, designate in writing. 
  

 4 

 4.4 Lease a Net Lease and Rent Absolute. It is the intent of the parties that the Basic Rent
provided in this Lease shall be a net payment to Landlord; that, except as otherwise expressly provided herein, the Lease shall continue for the full Lease Term notwithstanding any occurrence preventing or restricting use and occupancy of the
Demised Premises, including any damage or destruction affecting the Demised Premises, and any action by governmental authority relating to or affecting the Demised Premises; that the Basic Rent shall be absolutely payable without offset, reduction
or abatement for any cause except as otherwise specifically provided in this Lease; that Landlord shall not bear any costs or expenses relating to the Demised Premises or provide any services or do any act in connection with the Demised Premises
except as otherwise specifically provided in this Lease; and that Tenant shall pay, in addition to Basic Rent, Additional Rent to cover costs and expenses relating to the Demised Premises, the Common Facilities, and the Property, all as hereinafter
provided. 
  
 4.5 Additional Rent. Tenant covenants and
agrees to pay directly to third parties or as Additional Rent, as applicable, all costs and expenses relating to the Demised Premises including utilities, maintenance and repair thereof; Tenant’s Pro Rata Share of all costs and expenses
relating to the Common Facilities, pursuant to Section 7.2 hereof; Tenant’s Pro Rata Share of all Taxes and Assessments (hereinafter defined) and costs and expenses of Casualty Insurance (hereinafter defined); all costs and expenses of
Liability Insurance (hereinafter defined) and other insurance described in Section 6.3 below; and all other costs and expenses that Tenant is obligated to pay under this Lease; except that Tenant is not obligated to pay sums expressly allocated to
Landlord under other provisions of this Lease.. 
  
 4.6
Tenant’s Pro Rata Share. “Tenant’s Pro Rata Share” shall mean the percentage set forth in the Summary of Basic Lease Terms as Tenant’s Pro Rata Share, which is the percentage derived by dividing the approximate
rentable floor area of the Demised Premises, as set forth in the Summary of Basic Lease Terms, by the approximate rentable floor area within the Building, as set forth in the Summary of Basic Lease Terms. The percentage set forth in the Summary of
Basic Lease Terms shall be conclusive and not subject to adjustment for remeasurement of the area of the Demised Premises or the Building. Landlord may modify Tenant’s Pro Rata Share from time to time based upon any increase or reduction in the
rentable floor area of the Building or of the Demised Premises. 
  
 4.7 Monthly Deposits for Taxes. Insurance, and Common Facilities Charges. Tenant will pay to Landlord, monthly in advance, without notice, on each day that payment of Monthly Rental is due, amounts, as hereinafter specified, for
payment of Tenant’s Pro Rata Share of Taxes and Assessments (defined in Section 5.1), Casualty Insurance (defined in Section 6.1), Liability Insurance, if applicable (defined in Section 6.2), Common Facilities Charges (defined in Section 7.2),
and any other charges payable with respect to the Property hereunder as Additional Rent (collectively “Monthly Deposits”) and, if the Monthly Deposits are insufficient to pay Tenant’s Pro Rata Share of the actual cost of such items,
to pay to Landlord, within twenty (20) days after written demand by Landlord, such amounts as are necessary to provide Landlord with sufficient funds to pay Tenant’s Pro Rata Share of the same. The Monthly Deposits shall each be equal to
Tenant’s Pro Rata Share of 1/12 of the amounts, as reasonably estimated and re-estimated from time to time by Landlord (Tenant to receive written notice from time to time of each such estimate or re-estimate), of the annual Taxes and
Assessments, annual Casualty Insurance premiums, annual Liability Insurance premiums, and annual Common Facilities Charges payable with respect to the Property. The initial Monthly Deposit shall be subject to adjustment as herein, provided. To the
extent the Monthly Deposits exceed Tenant’s Pro Rata Share of the actual cost of such items, the excess amount shall, at Landlord’s option, except as may be otherwise provided by law, either be paid to Tenant or credited against future
Monthly Deposits or against Basic Rent, Additional Rent or other amounts payable by Tenant under this Lease. If Tenant so requests in writing within thirty (30) days after the date of Landlord’s annual reconciliation of Monthly Deposits,
Landlord shall furnish Tenant with a copy of invoices or receipts for 
  

 5 

 Taxes, Insurance, and Common Facilities Charges. The amounts of such taxes, insurance premiums and expenses payable by
Tenant for the years in which the Lease Term commences and expires shall be subject to the provisions hereinafter contained in this Lease for proration of such amounts in such years. Prior to the dates on which payment is due for such items,
Landlord shall make payment of the same. Except for Landlord’s obligation to make payments, the making of Monthly Deposits by Tenant shall not limit or alter Tenant’s obligation to pay taxes and assessments and to maintain insurance as
elsewhere provided in this Lease. 
  
 4.8 Security Deposit.
Upon delivery of Tenant’s notice of its election to renew this Lease as provided in Section 3.4 above, Tenant shall deposit with Landlord, the amount specified as a security deposit in the Summary of Basic Lease Terms (“Security
Deposit”). The Security Deposit shall be retained by Landlord and may be applied by Landlord, to the extent necessary, to pay and cover any loss, cost, damage or expense, including attorneys’ fees, sustained by Landlord by reason of Hie
failure of Tenant to comply with any provisions, covenant or agreement of Tenant contained in this Lease. To the extent not necessary to cover such loss, cost, damage or expense, the Security Deposit, without any interest thereon, shall be returned
to Tenant within sixty (60) days after expiration of the Lease Term or as may be otherwise provided by law; provided, however, that Landlord may also deduct any amount from the Security Deposit Landlord estimates may be required to cover any
shortfall in Additional Rent deposits made by Tenant in the final year of the Lease until such time as Landlord has completed its annual Additional Rent reconciliation for such year in which event any excess will be returned to Tenant. The Security
Deposit shall not be considered as an advance payment of rent or as a measure of the loss, cost, damage or expense that is or may be sustained by Landlord. In the event all or any portion of the Security Deposit is applied by Landlord to pay any
such loss, cost, damage or expense, Tenant shall, from time to time, promptly upon written demand, deposit with Landlord such amounts as may be necessary to replenish the Security Deposit to its original amount. 
  
 4.8.1 Letter of Credit. In connection with the execution of this Lease
by Tenant and prior to the Commencement Date, Tenant will deliver to Landlord a letter of credit in the form attached hereto as Exhibit I and issued by Wachovia Bank, National Association or another financial institution reasonably acceptable
to Landlord (the “Letter of Credit”). The Letter of Credit shah1 be in an amount of $1,578,065 (the
Secured Rent Obligation as defined in Section 4.8.3). Provided there is then no uncured Default by Tenant, the amount of the Letter of Credit may be reduced at the end of each calendar year and at the end of the original Lease Term by the amounts
indicated below, being the amount of the Secured Rent Obligation paid by Tenant during the immediately preceding year which reductions shall be accomplished in a manner reasonably satisfactory to Landlord: 
  

							
	 Year End

	  	Amount of
Reduction

	  	Amount of
L/C for
Next Year

	 2004
	  	$	285,444	  	$	l,292,621
	 2005
	  	$	393,362	  	$	899,259
	 2006
	  	$	406,578	  	$	492,681
	 2007
	  	$	420,272	  	$	72,409
	 2/29/2008
	  	$	72,409	  	$	0

  
 Any Letter of Credit reduction for the
Secured Rent Obligation, which would have been available to Tenant but for a Default by Tenant, will become available to Tenant in the event of (and upon) Tenant’s cure of the Default by Tenant. The Letter of Credit shall not be subject to
cancellation for any reason (except release by Landlord in accordance herewith) or otherwise expire at any time prior to May 31, 2008. 
  

 6 

 4.8.2 Release of Letter of Credit. Upon payment of the Rent Obligation to the extent due and
payable hereunder, Landlord covenants and agrees to promptly release the Letter of Credit. In the event of any early termination of this Lease not due to a Default by Tenant, Landlord shall likewise promptly release the Letter of Credit. In
releasing the Letter of Credit, Landlord agrees to provide all documentation reasonably required by the issuing bank to effect such release and shall copy Tenant on any correspondence with the issuing bank and related documentation. 
  
 4.8.3 Secured Rent Obligation. The “Secured Rent Obligation”
means ah1 of the Basic Rent payable through February 29, 2008, plus Additional Rent through February 29, 2008,
totaling for purposes of the Letter of Credit $1,578,065. 
  
 4.9
General Provisions as to Monthly Deposits and Security Deposit. Landlord shall not be required to hold the Security Deposit in an escrow or trust deposit account, and Landlord may commingle the Monthly Deposits with Landlord’s own funds.
Landlord shall not be obligated to pay interest to Tenant on account of the Monthly Deposits and Security Deposit. In the event of a transfer by Landlord of Landlord’s interest in the Demised Premises, Landlord or the property manager of
Landlord will deliver the Monthly Deposits and Security Deposit to the transferee of Landlord’s interest and Landlord and such property manager shall thereupon be discharged from any further liability to Tenant with respect to such Monthly
Deposits and Security Deposit In the event of a transfer by Tenant of Tenant’s interest in the Demised Premises, Landlord shall be entitled to return the Monthly Deposits and Security Deposit to Tenant’s successor in interest and Landlord
shall thereupon be discharged from any further liability with respect to the Monthly Deposits and Security Deposit. 
  
 4.10 Rent Regulations. If the Basic Rent, Additional Rent, or any other amounts to be paid by Tenant to Landlord hereunder is or becomes at any
tune subject to regulation by law such that they exceed the maximum rental or other amounts permitted by such laws, then the rent or other amounts to be so paid shall he the maximum rental or other amounts permitted by said laws. 
  
 ARTICLE 5 
  
 TAXES AND ASSESSMENTS 
  
 5.1 Covenant to Pay Taxes and Assessments. Tenant covenants and agrees to pay, as Additional Rent, Tenant’s Pro Rata Share of Taxes and
Assessments, as hereinafter defined, which accrue during or are attributable to the Lease Term. “Taxes and Assessments” shall mean all taxes, assessments or other impositions, general or special, ordinary or extraordinary, or every kind or
nature, which may be levied, assessed or imposed upon or with respect to the Property or any part thereof, or upon any building, improvements or personal property at any tune situated thereon. 
  
 5.2 Proration at Commencement and Expiration of Term. Taxes and
Assessments shall be prorated between Landlord and Tenant for the year in which the Lease Term commences and for the year in which the Lease Term expires as of, respectively, the date of commencement of the Lease Term and the date of expiration of
the Lease Term, except as herein provided. Additionally, for the year in which the Lease Term expires, Tenant shall be liable without proration for the full amount of Taxes and Assessments relating to any improvements, fixtures, equipment or
personal property that Tenant is required to remove or in fact removes as of the expiration of Hie Lease Term. Proration of Taxes and Assessments shall be made on the basis of actual Taxes and Assessments. Tenant’s Pro Rata Share of Taxes and
Assessments for the years in which the Lease Term commences and expires shall be paid and deposited with Landlord through Monthly Deposits as hereinabove provided, but, in the event actual Taxes and Assessments for either year are greater or less
than as estimated for purposes of Monthly Deposits, appropriate adjustment and payment 
  

 7 

 shall be made between the parties, at the time the actual Taxes and are known, as may be necessary to accomplish
proration, as hereinafter provided, and such obligation shall survive the termination or expiration of this Lease. 
  
 5.3 Special Assessments. If any Taxes or Assessments are payable in installments over a period of years, Tenant shall be responsible only for
installments payable for periods during the Lease Term with proration, as above provided, of any installment payable prior to or after expiration of the Lease Term. 
  
 5.4 New or Additional Taxes. Tenant’s obligation to pay Tenant’s Pro Rata Share of Taxes and Assessments
shall include any Taxes and Assessments of a nature not presently in effect but that may hereafter be levied, assessed or imposed upon Landlord or upon the Property if such tax shall be based upon or arise out of the ownership, use or operation of
or the rents received from the Property, other than income taxes or estate taxes of Landlord. For the purposes of computing Tenant’s liability for such new type of tax or assessment, the Property shall be deemed the only Property of Landlord.

  
 5.5 Landlord’s Sole Right to Contest Taxes,
Landlord shall have the sole right to contest any Taxes or Assessments. Landlord shall pay to or credit Tenant with Tenant’s Pro Rata Share of any abatement, reduction or recovery of any Taxes and Assessments attributable to the Lease Term less
Tenant’s Pro Rata Share of all costs and expenses incurred by Landlord, including attorneys’ fees, in connection with such abatement, reduction or recovery. 
  
 ARTICLE 6 
  
 INSURANCE 
  
 6.1 Casualty Insurance. Landlord covenants and agrees to obtain and keep in full force and effect during the Lease Term, Casualty Insurance as
hereinafter defined. “Casually Insurance” shall mean property insurance including “all risk” coverage with respect to the Property, in an amount equal to the full replacement cost thereof, with coinsurance clauses of no less than
ninety percent (90%), and with coverage, by endorsement or otherwise, for all risks, vandalism and malicious mischief, sprinkler leakage, boilers, and rental loss and with a deductible in reasonable amount for each occurrence as Landlord may
determine from time to time. Casualty Insurance obtained by Landlord shall name Tenant as an insured party and may, at Landlord’s option, name any mortgagee or holder of a deed of trust as an insured party as its interest may appear. Tenant
covenants and agrees to pay, as Additional Rent, its Pro Rata Share of the cost of Casualty Insurance obtained by Landlord, and to pay, as Additional Rent, its Pro Rata Share of the cost of any deductible under such Casualty Insurance as provided by
Section 10.5. Tenant shall be responsible for obtaining, at Tenant’s option, cost and expense, insurance coverage for personal property and leasehold improvements of Tenant and for business interruption of Tenant. 
  
 6.2 Liability Insurance. Tenant covenants and agrees to obtain and
keep in full force and effect during the Lease Term, and to pay the premiums and costs of, Liability Insurance as herein defined. “Liability Insurance” shall mean comprehensive or commercial general liability insurance covering public
liability for claims for bodily injury, personal injury, and property damage with respect to the use and operation of the Demised Premises and the Common Facilities, with limits of not less man two million dollars ($2,000,000.00) combined single
limit of liability, with endorsements for assumed contractual liability with respect to the liabilities assumed by Tenant under Sections 8.24 and 9.2 of this Lease, and with no deductible, retention or self-insurance provision contained therein,
unless otherwise approved in writing by Landlord. The coverage limits may be satisfied by a comprehensive or commercial general liability policy with limits of not less than one million dollars ($1,000,000.00) combined with a liability excess policy
with limits of not less than two million dollars ($2,000,000.00). Landlord may, at its sole cost, also obtain and keep in full force and effect during the Lease Term liability insurance covering public liability with respect to the ownership, use
and operation of the Property. 
  

 8 

 6.3 Other Insurance. Tenant covenants and agrees to obtain and keep in full force and effect
during the Lease Term, and to pay the premiums and costs of, any other types of insurance relating to the Property or Tenant’s occupancy, use, and operation of the Demised Premises that any mortgagee or holder of a deed of trust on the Property
may hereafter reasonably require. Tenant shall cause such other insurance to be in effect within thirty (30) days after receipt of written notice from Landlord. Landlord may obtain insurance coverage for lost rental income, the cost of which shall
be paid by Tenant as Additional Rent. 
  
 6.4 General
Provisions Respecting Insurance. Except as otherwise approved in writing by Landlord, all insurance obtained by Tenant shall be on forms and with insurers selected or approved by Landlord, which approval shall not be unreasonably withheld; and
shall name Landlord, and, upon written request by Landlord providing all requisite information, Landlord’s manager(s) and agent(s), and the holder of any mortgage or deed of trust encumbering the Property, their interests may appear as insured,
or additional insured, parties. All insurance obtained by either party as provided herein shall contain a waiver of rights of subrogation as among Tenant, Landlord and the holder of any such mortgage or deed of trust and by the respective insurers
by endorsement; shall provide coverage on an occurrence basis; and shall provide, by certificate of insurance or otherwise, that the insurance coverage shall not be canceled or altered except upon thirty (30) days’ prior written notice to the
other party and the holder of any such mortgage or deed of trust on the Demised Premises. Certificates of insurance obtained by Tenant shall be delivered to Landlord who may deposit the same with the holder of any such first mortgage or deed of
trust. Upon written request, each party agrees to provide the other with copies of all policies of insurance obtained by such party hereunder. 
  
 6.5 Cooperation in the Event of Loss. Landlord and Tenant shall cooperate with each other in the collection of any insurance proceeds that may be
payable in the event of any loss, including the execution and delivery of any proof of loss or other actions required to effect recovery. 
  
 ARTICLE 7 
  
 UTILITY, OPERATING, MAINTENANCE AND REPAIR EXPENSES 
  
 7.1 Utility Charges. Tenant covenants and agrees to contract for in Tenant’s own name and to pay directly to the utility providers, all
charges for water, sewage, disposal, storm drainage fees, gas, electricity, light, heat, power, telephone or other utility services used, rendered or supplied to or for the Demised Premises. If any such utility charges are not separately metered or
billable to the Demised Premises, then (i) Landlord shall have the right to apportion utility charges based upon Landlord’s reasonable estimation of relative use of such utilities, and (ii) Tenant shall the right to cause such utilities to be
separately metered at Tenant’s sole expense. In the event, from time to time, that Tenant shall fail to make payments to utility providers, as required above when due and payable, Landlord shall have the right at its option, to pay any and all
amounts owing, and Tenant shall immediately reimburse Landlord for same upon written notice of such payment by Landlord, such reimbursement obligation to constitute Additional Rent. Tenant shall pay to Landlord the apportioned amount of such
utilities as Additional Rent. In the event of an interruption of utilities or services necessary to Tenant’s use of the Demised Premises or its ability to carry out its Permitted Use, but only if such interruption is not caused by Tenant,
Landlord will cooperate and exercise commercially reasonable efforts to assist Tenant with regaining service. 
  
 7.2 Common Facilities Charges. Tenant covenants and agrees to pay, as Additional Rent, Tenant’s Pro Rata Share of those costs and expenses
that are incurred by Landlord during the term of 
  

 9 

 operating, repairing, maintaining and upkeep of the Common Facilities including, without limitation, upkeep and
replanting of grass, trees, shrubs and landscaping; removal of dirt, debris, obstructions and litter from Parking Areas, landscaped areas, sidewalks and driveways; repairs, resurfacing, resealing, restriping, sweeping and snow removal from the
Parking Areas, sidewalks and driveways; sprinkler systems; building signs; stairways; heating, ventilation and air conditioning systems; utilities for the Common Facilities; fire protection systems and sprinkler systems; exterior painting; roof
membranes, including penetrations of the membranes; water and sewage disposal systems; storm drainage systems; supplies, personnel, and the cost of any rental of equipment in implementing such services; charges for professional management of the
Property and Common Facilities; the wages, salaries, benefits and payroll taxes paid by Landlord with respect to its non-supervisory employees (to the extent reasonably allocable to providing such services with respect to the Common Facilities); all
alterations, additions, improvements and other changes made to the Improvements in order to conform to changes subsequent to the date of this Lease in any laws, ordinances, rules, regulations or orders of any applicable governmental authority,
subject to amortization of such costs at a market rate of interest over the useful life thereof, as determined by Landlord’s accountants; and personal property taxes, licenses and permits (to the extent reasonably allocable to providing such
services to the Common Facilities). Landlord may cause any or all of such services to be provided by employees of Landlord or by independent contractor(s) and subcontractor(s). Tenant shall pay to Landlord, monthly in advance, without notice, on
each day that payment of Monthly Rental is due, the estimated monthly charge for the Common Faculties, as determined and redetermined from time to time by Landlord in accordance with Section 4.7 above. Notwithstanding anything to the contrary set
forth in this Section 7.2, Tenant shall not be required to pay, as Additional Rent or otherwise (and Landlord shall bear) all costs and expenses incurred by Landlord in connection with maintaining, replacing or improving the Property (or any portion
thereof) to the extent such costs and expenses (i) are for improvements or replacements having a useful life of five (5) years or more, as determined by Landlord’s accountants (excepting those incurred in connection with roof membranes or
alterations, additions, improvements and other changes made to the Improvements in order to conform to changes subsequent to the date of this Lease in any laws, ordinances, rules, regulations or orders of any applicable governmental authority, as
provided above), (ii) constitute legal, accounting, consulting or other professional fees or leasing fees, (iii) were incurred in connection with improvements made for the benefit of occupants of other buildings or properties, or to prepare space
for occupancy by a purchaser or a new tenant, (iv) are reimbursed by third parties or (v) result from the gross negligence or willful misconduct of Landlord or its agents, contractors, invitees or employees. 
  
 7.3 Tenant’s Maintenance Obligation. Tenant, at its sole cost and
expense, shall maintain, repair, replace (at Tenant’s reasonable option) and keep the Demised Premises and all non-structural improvements, fixtures and personal property (excluding Tenant’s Equipment) thereon (including, for purposes of
this paragraph and without limitation, the heating, ventilation and air conditioning systems, fire protection systems and sprinkler systems, Tenant’s Equipment, the electrical, lighting and communications conduits, wires, switches and other
electrical fixtures and the plumbing pipes, valves, meters and other •plumbing fixtures for water and sewer) in good, safe and sanitary condition, order and repair and hi accordance with all applicable laws, ordinances, orders, rules and
regulations of governmental authorities having jurisdiction, ordinary wear and tear, casualty and condemnation excepted. Tenant will perform or contract for and promptly pay for trash and garbage disposal, janitorial and cleaning services, security
services, interior painting, ulterior window washing, replacement of damaged or broken glass and other breakable materials, replacement of interior light bulbs and light fixtures in or serving the Demised Premises. All costs of maintenance and
repairs to be performed by Tenant in accordance herewith, but incurred instead by Landlord, shall be considered Additional Rent hereunder. All maintenance and repairs to be performed by Tenant shall be done promptly, in a good and workmanlike
fashion, and without dirninishing the original quality of the Demised Premises or the Property. Tenant shall maintain the heating, ventilation and air conditioning equipment located in or about the Building by a contractor reasonably acceptable to
Landlord. 
  

 10 

 7.4 Landlord’s Maintenance Obligation. Landlord shall be responsible for and shall bear the
costs and expenses of replacement of, or extraordinary maintenance and repairs to, structural aspects of the roofs, foundations, exterior walls, and other structural elements of the Building and keep such structural elements in good and safe
condition, order and repair. Landlord shall also maintain and repair the Common Facilities and provide routine maintenance of the structural elements, and Tenant shall pay its Pro Rata Share of all costs and expenses with respect thereto pursuant to
Section 7.2 above. 
  
 ARTICLE 8 
  
 OTHER COVENANTS OF TENANT 
  
 8.1 Limitation on Use by Tenant. Tenant covenants and agrees to use
the Demised Premises only for the use or uses set forth as Permitted Uses by Tenant in the Summary of Basic Lease Terms and for no other purposes, except with the prior written consent of Landlord. Landlord has made no investigation of and makes no
representations or warranties whatsoever regarding the permissibility of Tenant’s Permitted Uses under applicable zoning or land use laws, rules, regulations or approvals. 
  
 8.2 Compliance with Laws. Tenant covenants and agrees that at all times during the Lease Term, Tenant’s use of
the Demised Premises shall be in compliance with all zoning, land use, and other applicable laws, rules, and regulations with respect thereto, and that nothing shall be done or kept on the Demised Premises in violation of applicable law, ordinance,
order, rule or regulation of any governmental authority having jurisdiction, and that the Demised Premises shall be used, kept and maintained in compliance with any such law, ordinance, order, rule or regulation and with the certificate of occupancy
issued for the Building and/or the Demised Premises; provided, however, that nothing in this Section 8.2 is intended, or shall be construed, to require Tenant to make or to pay for alterations, improvements or replacements to or of the Property (or
any portion thereof) except those that may he required as a result of Tenant’s or Baxter’s use or alteration of the Demised Premises or Tenant’s business operations. 
  
 8.3 Compliance with Insurance Requirements. Tenant covenants and agrees that should anything he done or kept at the
Demised Premises on the part of Tenant or Tenant’s employees, agents, invitees or contractors that increases the cost of insurance maintained with respect to the Demised Premises or the Property, then Tenant shall bear the full economic effect
of such increase in premiums. 
  
 8.4 No Waste or Impairment of
Value. Tenant covenants and agrees that nothing shall be done or kept on the Demised Premises or the Property that would impair the value of the Demised Premises or the Property, or that would constitute excessive wear and tear or waste.

  
 8.5 No Overloading. Tenant covenants and agrees that
nothing shall be done or kept on the Demised Premises or the Building and that no improvements, changes, alterations, additions, maintenance or repairs shall be made to the Demised Premises that might impair the structural soundness of the Building,
Improvements, or Parking Area, that might result in an overload of electrical lines serving the Building or cause excessive tripping of circuit breakers, that might interfere with any telephone lines or equipment or any other electric or electronic
equipment in the Building or on any adjacent or nearby property, that might place excessive demands on or exceed the capacity of the water lines or sewer lines servicing the Building, or that might in any other way overload any portion of the
Property or Improvements or any equipment or facilities servicing Hie same. In the event of violations hereof, Tenant covenants and agrees to immediately remedy the violation at Tenant’s expense and in compliance with all requirements of
governmental authorities and insurance underwriters. 
  

 11 

 8.6 No Nuisance. Noxious or Offensive Activity. Tenant covenants and agrees that no noxious or
offensive activity shall be carried on upon Hie Demised Premises or the Property nor shall anything be done or kept on the Demised Premises or the Property that may be or become a public or private nuisance or mat is likely to cause disturbance or
annoyance to others on adjacent or nearby property. 
  
 8.7 No
Annoying Lights, Sounds or Odors. Tenant covenants and agrees that no light shall be emitted from the Demised Premises that is unreasonably bright or causes unreasonable glare; no sound shall be emitted from the Demised Premises that is
unreasonably loud or annoying; and no odor shall be emitted from the Demised Premises that is or might be noxious or offensive to others in the Building or on adjacent or nearby property. 
  
 8.8 No Unsightliness. Tenant covenants and agrees that no unsightliness shall be permitted on the Demised Premises or
the Property that is visible from any adjacent or nearby property. Without limiting the generality of the foregoing, all unsightly conditions, equipment, objects and conditions shall be kept enclosed within the Demised Premises; no refuse, scrap,
debris, garbage, trash, bulk materials or waste shall be kept, stored or allowed to accumulate on the Demised Premises or the Property except as may be enclosed within the Demised Premises; all pipes, wires, poles, antennas and other facilities for
utilities or the transmission or reception of audio or visual signals or electricity shall be kept and maintained underground or enclosed within the Demised Premises or appropriately screened from view; and no temporary structure shall be placed or
permitted on the Demised Premises or the Property without the prior written consent of Landlord. 
  
 8.9 No Animals. Tenant covenants and agrees that no animals shall be permitted or kept on the Demised Premises or the Property; provided, however,
that nothing herein shall be construed as prohibiting qualified service animals that may not be legally excluded from the Demised Premises or Properly pursuant to the Americans with Disabilities Act or any similar law, rule or regulation applicable
to the Property. 
  
 8.10 Restriction on Signs and Exterior
Lighting. Tenant covenants and agrees that no signs or advertising devices of any nature shall be erected or maintained by Tenant on the Demised Premises or the Property and no exterior lighting shall be permitted on the Demised Premises or the
Property except as approved in writing by Landlord, which approval will not be unreasonably withheld, conditioned or delayed. 
  
 8.11 No Violation of Covenants. Tenant covenants and agrees not to commit, suffer or permit any violation of any covenant, condition or restriction
affecting the Demised Premises or the Property. 
  
 8.12
Restriction on Changes and Alterations. Tenant covenants and agrees not to improve, change, alter, add to, remove or demolish any improvements on the Demised Premises, (“Changes”), without the prior written consent of Landlord,
which consent shall not be unreasonably withheld, conditioned or delayed, and unless Tenant complies with all reasonable conditions that may be imposed by Landlord in connection with such consent; and unless Tenant pays to Landlord the reasonable
costs and expenses of Landlord for architectural, engineering, legal or other consulting that may be reasonably incurred by Landlord in determining whether to approve any such Changes. Landlord’s consent to any Changes and the conditions
imposed in connection therewith shall be subject to all requirements and restrictions of any holder of a mortgage or deed of trust encumbering the Property. If such consent is given, no such changes shall be permitted unless Tenant shall have
procured and paid for all necessary permits and 
  

 12 

 authorizations from any governmental authorities having jurisdiction; unless such Changes will not reduce the value of
the Property, and will not affect or impair existing insurance on the Property; and unless Tenant, at Tenant’s sole cost and expense, shall maintain or cause to be maintained workmen’s compensation (to the extent required by applicable
law) covering all persons employed in connection with the work and obtains liability insurance covering any loss or damage to persons or property arising in connection with any such Changes and such other insurance or bonds as Landlord may
reasonably require. Tenant covenants and agrees that any such Changes approved by Landlord shall be completed with due diligence and in a good and workmanlike fashion and in compliance with all conditions imposed by Landlord and all applicable
permits, authorizations, laws, ordinances, orders, rules and regulations of governmental authorities having jurisdiction and that the costs and expenses with respect to such Changes shall be paid promptly when due and that the Changes shall be
accomplished free of liens of mechanics and rnaterialmen. Tenant covenants and agrees that all such Changes (except to the extent they constitute Tenant’s Equipment, whether or not affixed or attached to the real estate) shall become the
property of Landlord at the expiration of the Lease Term if and to the extent that Landlord relieves Tenant from its Restoration Obligations at the expiration or termination of this Lease. 
  
 8.13 No Mechanic’s Liens. Tenant covenants and agrees not to
permit or suffer, and to cause to be removed and released, any mechanic’s, rnaterialmen’s or other lien on account of supplies, machinery, tools, equipment, labor or material furnished or used in connection with the construction,
alteration, improvement, addition to or repair of the Demised Premises by, through or under Tenant. At least fifteen (15) days prior to any Changes, Tenant shall provide written notice to Landlord of the date of commencement of any Changes. Prior to
the commencement of any Changes, Tenant shall post in conspicuous locations and maintain on the Demised Premises and Building Notices of Owner’s Non-Liabiliry hi the form attached hereto as Exhibit C or in such other form as Landlord may
from time to time reasonably require in writing. Tenant shall have the right to contest, in good faith and with reasonable diligence, the validity of any such lien or claimed lien, provided that Tenant shall give to Landlord such security as may be
reasonably requested by Landlord to insure the payment of any amounts claimed, including interest and costs, and to prevent any sale, foreclosure or forfeiture of any interest in the Property on account of any such lien, including, without
limitation, bonding, escrow or endorsement of the title insurance policy of Landlord and any holder of a mortgage or deed of trust encumbering the Property. If Tenant so contests, then on final determination of the lien or claim for lien, Tenant
shall immediately pay any judgment rendered, with interest and costs, if any, and will cause the lien to be released and any judgment satisfied. 
  
 8.14 No Other Encumbrances. Tenant covenants and agrees not to obtain any financing secured by Tenant’s interest in the Demised Premises and
not to encumber the Demised Premises or Landlord’s or Tenant’s interest therein, without the prior written consent of Landlord, and to keep the Demised Premises free from all liens and encumbrances except liens and encumbrances existing
upon the date of commencement of the Lease Term or liens and encumbrances created by Landlord or otherwise outside the control of Tenant. 
  
 8.15 Subordination to Landlord Mortgages. Tenant covenants and agrees that this Lease and Tenant’s interest in the Demised Premises shall be
junior and subordinate to any mortgage or deed of trust now or hereafter encumbering the Property. In the event of a foreclosure of any such mortgage or deed of trust, Tenant shall attorn to the party acquiring title to the Property as the result of
such foreclosure. No act or further agreement by Tenant shall be necessary to establish the subordination of this Lease to any such mortgage or deed of trust, which is self-executing, but Tenant covenants and agrees, upon request to Landlord, to
execute such documents as may be reasonably necessary or appropriate to confirm and establish this Lease as subordinate to any such mortgage or deed of trust in accordance with the foregoing 
  

 13 

 provisions, including, without limitation, the form of Subordination, Non-Disturbance and Attomment Agreement attached
hereto as Exhibit D. Alternatively, Tenant covenants and agrees that, at the option of any mortgagee or beneficiary under a deed of trust, Tenant shall execute documents as may be reasonably necessary to establish this Lease and Tenant’s
interest in the Demised Premises as superior to any such mortgage or deed of trust. If Tenant fails to execute any documents required to be executed by Tenant under the provisions hereof, Tenant hereby makes, constitutes and irrevocably appoints
Landlord as Tenant’s attorney in fact and in Tenant’s name, place and stead to execute any such document. In the event Tenant requests any changes or revisions to any such document or agreement, Tenant shall pay to Landlord, within ten
(10) days after demand by Landlord, the reasonable costs and expenses of Landlord in connection with the negotiation, drafting, and revision thereof, including attorneys’ fees. 
  
 8.16 Assignment or Subletting. Tenant covenants and agrees not to make or permit a Transfer by Tenant, as hereinafter
defined, without Landlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. A Transfer by Tenant shall include an assignment of this Lease, a sublease of all or any part of the Demised Premises
or any assignment, sublease, license, franchise, transfer, mortgage, pledge or encumbrance of all or any part of Tenant’s interest under this Lease or hi the Demised Premises, by operation of law or otherwise, or the use or occupancy of all or
any part of the Demised Premises by anyone other than Tenant. Any such Transfer by Tenant without Landlord’s written consent shall be void and shall constitute a default under this Lease. In the event Landlord consents to any Transfer by
Tenant, Tenant shall not be relieved of its obligations under this Lease and Tenant shall remain liable, jointly and severally and as a principal, and not as a guarantor or surety, under this Lease, to the same extent as though no Transfer by Tenant
had been made, unless specifically provided to the contrary in Landlord’s prior written consent. The acceptance of rent by Landlord from any person other than Tenant shall not be deemed to be a waiver by Landlord of the provisions of this
Section or of any other provision of this Lease and any consent by Landlord to a Transfer by Tenant shall not be deemed a consent to any subsequent Transfer by Tenant. In giving or withholding its consent to a proposed Transfer by Tenant, Landlord
shall be entitled to consider any reasonable factor, including but not limited to the following: (a) financial strength and credit history of the proposed subtenant/assignee; (b) business reputation of the proposed subtenant/assignee; (c) proposed
use of the Demised Premises by the proposed subtenant/assignee; (d) managerial and operational skills of the proposed subtenant/assignee; and (e) compatibility of the proposed subtenant with other tenants of the Building. Notwithstanding the
foregoing, Tenant may assign this Lease or sublet any or all of its leasehold interest in the Demised Premises to an affiliate, subsidiary, or parent corporation of Tenant; (ii) resulting entity from a merger or consolidation involving Tenant; or
(iii) an entity purchasing all or substantially all of the assets of Tenant, in each case without Landlord’s consent, provided that Tenant gives written notice to Landlord with a copy of the assignment or sublease and the assignee or sublessee
agrees in writing with Landlord to be bound by the terms and conditions of the Lease; provided further that no such notice or consent shall be required in connection with the transfer of any voting stock or interests of Tenant. Despite any
assignment or sublease, Tenant will not be relieved of its obligations under this Lease, and Tenant remains liable, jointly and severally and as a principal, and not as a guarantor or surety, under this Lease, to the same extent as though no
assignment or sublease by Tenant had been made. 
  
 Tenant
covenants and agrees that in the event Landlord consents to a sublease by Tenant, Tenant and Tenant’s Subtenant shall enter into the form of Sublease, Assumption and Consent Agreement attached hereto as Exhibit E, and in the event
Landlord consents to an assignment, Tenant and Tenant’s assignee shall enter into the form of Assignment, Assumption, and Consent Agreement attached hereto as Exhibit F, or the standard form of agreement in each case then being used by
Landlord for subleases and assignments. In the event Tenant or Tenant’s transferee requests any changes or revisions to any such 
  

 14 

 agreement, Tenant shall pay to Landlord, within ten (10) days after demand by Landlord, the reasonable costs and expenses
of Landlord in connection with any request by Tenant for consent to a Transfer, including attorneys’ fees. 
  
 8.17 Annual Financial Statements. Tenant covenants and agrees to furnish to Landlord, within fifteen (15) days after Landlord’s written
request, copies of Tenant’s most recent year end financial statements, and agrees that Landlord may deliver any such financial statements to any existing or prospective mortgagee or purchaser of the Property. The financial statements shall
include a balance sheet as of the end of, and a statement of profit and loss for, the preceding fiscal year of Tenant and, if regularly prepared by Tenant, a statement of sources and use of funds for the preceding fiscal year of Tenant. 

 
 8.18 Payment of Other Taxes. Tenant covenants and agrees to pay
promptly when due all personal property taxes on personal property of Tenant on the Demised Premises and all state and local sales taxes and use taxes, the nonpayment of which might give rise to a lien on the Demised Premises or Tenant’s
interest therein to the extent applicable to the Demised Premises, and to furnish, if requested by Landlord, evidence of such payments. 
  
 8.19 Estoppel Certificates. Tenant covenants and agrees to execute, acknowledge and deliver to Landlord, upon Landlord’s written request, a
written Estoppel Certificate certifying that this Lease is unmodified (or, if modified, stating the modifications) and in full force and effect; stating the dates to which Basic Rent has been paid, stating the amount of the Security Deposit held hy
Landlord; stating the amount of the Monthly Deposits held by Landlord for the then tax and insurance year; and stating whether or not Landlord is in default under this Lease (and, if so, specifying the nature of the default); and stating such other
matters concerning this Lease as Landlord may reasonably request, including but not limited to, the form of Estoppel Certificate attached hereto as Exhibit G. Tenant agrees that such statement may be delivered to and relied upon by any
existing or prospective mortgagee or purchaser of the Property, Tenant agrees that a failure to deliver such a statement within ten (10) days after written request from Landlord shall be conclusive upon Tenant that this Lease is in full force and
effect without modification except as may be represented by Landlord; that there are no uncured defaults by Landlord under this Lease; and that any representation by Landlord with respect to Basic Rent, the Security Deposit and Monthly Deposits are
true. In the event Tenant requests any changes or revisions to any such Estoppel Certificate other than to correct inaccuracies, Tenant shall pay to Landlord, within ten (10) days after demand by Landlord, the reasonable costs and expenses of
Landlord in connection the negotiation, drafting and revision of such Estoppel Certificate, including attorneys’ fees. 
  
 8.20 Landlord Right to Inspect and Show Premises and to Install “For Sale” Signs. Tenant covenants and agrees that Landlord and the
authorized representatives of Landlord shah1 have the right to enter the Demised Premises at any reasonable time for
the purposes of inspecting, repairing or maintaining the same or performing any obligations of Tenant that Tenant has failed to perform hereunder or for the purposes of showing the Demised Premises to any existing or prospective mortgagee, purchaser
or, during the last nine (9) months of the Lease Term, lessee of the Property or the Demised Premises. Except in the case of emergency, Landlord will notify Tenant a reasonable time prior to entering the Demised Premises. Tenant covenant s and
agrees that Landlord may at any time place on the Property or the Demised Premises a sign advertising the Property or the Demised Premises for sale or, within the last nine (9) months of the Term, for lease. 
  
 8.21 Landlord Right to Renovate. Expand or Modify Building. Tenant
covenants and agrees that Landlord shall have the right to renovate, expand, reconstruct, or otherwise modify the Building and/or Common Facilities at any time, in Landlord’s sole discretion; provided, however, that no such renovation,

  

 15 

 expansion, reconstruction, or other modification shall permanently or materially interfere with Tenant’s right to
the quiet use and enjoyment of the Demised Premises. Landlord will give Tenant prior written notice describing any work planned under the terms of this provision and the methods planned for performing such work. Tenant may require Landlord to modify
its methods in reasonable manner to minimize any impact on Tenant’s operations. 
  
 8.22 Landlord Title to Fixtures. Improvements and Equipment. Subject to Tenant’s Restoration Obligations and excluding Tenant’s Equipment, Tenant covenants and agrees that all fixtures and
improvements on the Demised Premises and all equipment and personal property relating to the use and operation of the Demised Premises (as distinguished from operations incident to the business of Tenant), including all plumbing, heating, lighting,
electrical and air conditioning fixtures and equipment, whether or not attached to or affixed to the Demised Premises, and whether now or hereafter located upon the Demised Premises, shall be and remain the property of Landlord upon expiration of
the Lease Term. 
  
 8.23 Removal of Tenant’s
Equipment. In addition to Tenant’s Restoration Obligations, Tenant covenants and agrees to remove, at or prior to the expiration of the Lease Term, all of Tenant’s Equipment, as hereinafter defined. If such removal shall injure or
damage the Demised Premises Tenant covenants and agrees, at its sole cost and expense, at or prior to the expiration of the Lease Term, to repair such injury and damage in good and workmanlike fashion and to place the Demised Premises in the same
condition as the Demised Premises would have been if such Tenant’s Equipment had not been installed. If Tenant fails to remove any Tenant’s Equipment by the Expiration of the Lease Term, Landlord may, at its option, keep and retain any
such Tenant’s Equipment or dispose of the same and retain any proceeds therefrom, and Landlord shall be entitled to recover from Tenant any costs or expenses of Landlord in removing the same and in restoring the Demised Premises in excess of
the actual proceeds, if any, received by Landlord from disposition thereof. Tenant releases and discharges Landlord from any and all claims and liabilities of any kind arising out of Landlord’s disposition of Tenant’s Equipment pursuant to
this Section 8.23. 
  
 8.24 Tenant indemnification of
Landlord. Tenant covenants and agrees to protect, indemnify, defend, and hold Landlord harmless from and against all liability, obligations, claims, damages, penalties, causes of action, costs and expenses, including attorneys’ fees,
imposed upon, incurred by or asserted against Landlord by reason of: (a) any accident, injury to or death of any person or loss of or damage to any property occurring on the Demised Premises or Common Facilities; (b) any act or omission of Tenant or
of Tenant’s officers, employees, agents, guests or invitees or of anyone claiming by, through or under Tenant; (c) any use that may be made by Tenant of, or condition created by Tenant or Baxter upon, the Demised Premises or Common Facilities;
(d) any improvements, fixtures or equipment upon the Demised Premises or Common Facilities installed by Tenant or by Baxter; (e) any failure on the part of Tenant to perform or comply with any of the provisions, covenants or agreements of Tenant
contained in this Lease; (f) any violation of any applicable law, ordinance, order, rule or regulation of governmental authorities having jurisdiction by Tenant or Tenant’s officers, employees, agents, guests or invitees or by anyone claiming
by, through or under Tenant; and (g) any repairs, maintenance or Changes to the Demised Premises made or caused to be made by, through or under Tenant. Tenant further covenants and agrees that, in case any action, suit or proceeding is brought
against Landlord by reason of any of the foregoing, Tenant will, at Tenant’s sole cost and expense, pay all costs and expenses to defend Landlord in any such action, suit or proceeding with counsel of Landlord’s choosing. Tenant’s
obligations under this Section 8.24 will not apply to any liability, obligations, claims, damages, penalties, causes of action, costs and expenses, including attorneys’ fees, imposed upon, incurred by or asserted against Landlord to the extent
caused or contributed by the gross negligence or willful misconduct of Landlord or its officers, agents, contractors, guests, invitees or employees. 
  

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 8.25 Liability of Landlord. Landlord shall be liable to Tenant for Landlord’s gross
negligence and willful misconduct. Tenant waives and releases any claims Tenant may have against Landlord or Landlord’s officers, agents or employees for loss, damage or injury to person or property sustained by Tenant or Tenant’s
officers, agents, employees, guests, invitees, or anyone claiming by, through or under Tenant resulting from any cause whatsoever other than gross negligence or willful misconduct. Notwithstanding anything to the contrary contained in this Lease,
Landlord, its beneficiaries, successors and assigns, shall not be personally liable with respect to any of the terms, covenants and conditions of this Lease, and Tenant shall look solely to the equity of Landlord in the Property in the event of any
default or liability of Landlord under this Lease, such exculpation of liability to be absolute and without any exception whatsoever. 
  
 8.26 Release upon Transfer by Landlord. In the event of a transfer by Landlord of the Property or of Landlord’s interest as Landlord under
this Lease, Landlord’s successor or assignee shall take subject to and be bound by this Lease and, in such event, Tenant covenants and agrees that Landlord shall be released from all obligations of Landlord under this Lease, except obligations
that arose and matured prior to such transfer by Landlord; that Tenant shall thereafter look solely to Landlord’s successor or assign for satisfaction of the obligations of Landlord under this Lease; and that, upon demand by Landlord or
Landlord’s successor or assign, Tenant shall attorn to such successor or assign. 
  
 8.27 Rules and Regulations. Upon and after receipt of written notice thereof to Tenant, Tenant shall observe and comply with rules and regulations that may be promulgated and amended from time to time by Landlord,
provided that such rules and regulations are reasonable and do not materially interfere with Tenant’s ability to carry out the Permitted Use at the Demised Premises. Landlord shall not be responsible to Tenant for the failure of any other
tenant of the Building to observe or comply with any of the rules or regulations, but Landlord shall make reasonable efforts to enforce the rules and regulations (if any) for the benefit of all tenants of the Building. 
  
 8.28 Monitoring Equipment. Should equipment for monitoring fire
systems and/or security systems be deemed necessary by Tenant or be required for the Demised Premises by federal, state, or local governing agencies because of Tenant’s equipment, the nature of Tenant’s business, or Tenant’s
modification of the Demised Premises, Tenant shall be responsible for installation of such monitoring system, for any required building permits, monthly monitoring fees, and any fines, penalties or other charges for false alarms. Should such
monitoring systems be otherwise required by federal, state, or local governing agencies, or deemed by Landlord to be advisable for the operation of the Building, Landlord shall be responsible for installation of such monitoring systems, and all
costs and expenses relating thereto shall be included as Common Facilities Charges. 
  
 ARTICLE 9 
  
 ENVIRONMENTAL
MATTERS 
  
 9.1 Definitions. 
  
 9.1.1 Hazardous Material. Hazardous Material means any substance:

  
 9.1.1.1 that is or becomes defined as a “hazardous
material,” “hazardous waste,” “hazardous substance,” “regulated substance,” “pollutant” or “contaminant” under any applicable federal, state or local statute, regulation, rule or ordinance or
amendments thereto including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.); or 

 

 17 

 9.1.1.2 that is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic,
mutagenic, or otherwise hazardous and is or becomes regulated by any governmental authority, agency, department, commission, board, agency or instrumentality of the United States, the State of Colorado or any political subdivision thereof; or

  
 9.1.1.3 the presence of which on the Demised Premises causes
or threatens to cause a nuisance upon the Demised Premises or to adjacent properties or poses or threatens to pose a hazard to the health or safety of persons on or about the Demised Premises; or 
  
 9.1.1.4 that contains gasoline, diesel fuel or other petroleum hydrocarbons;
or 
  
 9.1.1.5 that contains polychlorinated bipheynols (PCBs),
asbestos or urea formaldehyde foam insulation; or 
  
 9.1.1.6
radon gas. 
  
 9.1.2 Environmental Requirements.
Environmental Requirements means all applicable statutes, regulations, rules, ordinances, codes, licenses, permits, orders, approvals, plans, authorizations, concessions, franchises, and similar items, of all governmental agencies, departments,
commissions, boards, bureaus, or instrumentalities of the United States, states and political subdivisions thereof having jurisdiction over the Demised Premises and all applicable judicial, administrative, and regulatory decrees, judgments, and
orders relating to the protection of human health or the environment. 
  
 9.1.3 Environmental Damages. Environmental Damages means all claims, judgments, damages, losses, penalties, fines, liabilities (including strict liability), encumbrances, liens, costs, and expenses of investigation and defense of any
claim, whether or not such claim is ultimately defeated, and of any good faith settlement or judgment, of whatever kind or nature, contingent or otherwise, matured or unmatured, foreseeable or unforeseeable, including without limitation reasonable
attorneys’ fees and disbursements and consultants’ and witnesses’ fees, any of which are incurred at any time as a result of the existence of Hazardous Material upon, about, beneath the Demised Premises or migrating or threatening to
migrate to or from the Demised Premises, or the existence of a violation of Environmental Requirements pertaining to the Demised Premises. 
  
 9.2 Tenant’s Obligation to Indemnify. Defend and Hold Harmless. Tenant, its successors, assigns and guarantors, agree to indemnify, defend,
reimburse and hold harmless the following persons from and against any and all Environmental Damages arising from activities of Tenant or its employees, agents, contractors, subcontractors, or guests, licensees, or invitees that (1)
result in the release of Hazardous Materials upon, about or beneath the Demised Premises or migrating to or from the Demised Premises, or (2) result in the violation of any Environmental Requirements pertaining to the Demised Premises and the
activities thereon: 
  
 9.2.1 Landlord; 
  
 9.2.2 any other person who acquires an interest in the Demised Premises in
any manner, including but not limited to purchase at a foreclosure sale or otherwise; and 
  
 9.2.3 the directors, officers, shareholders, employees, partners, agents, contractors, subcontractors, experts, licensees, affiliates, lessees, mortgagees, trustees, heirs, devisees, successors, assigns, guests and
invitees of such persons. 
  

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 This obligation shall include, but not be limited to, the burden and expense of investigating and
defending all claims, suits and administrative proceedings (with counsel reasonably approved by the indemnified parties), including attorneys’ fees and expert witness and consulting fees, even if such claims, suits or proceedings are
groundless, false or fraudulent, and conducting all negotiations of any description, and paying and discharging, when and as the same become due, any and all judgments, penalties or other sums due against such indemnified persons, and all such
expenses incurred in enforcing the obligation to indemnify. Tenant, at its sole expense, may employ additional counsel of its choice to associate with counsel representing the indemnified parties. 
  
 9.3 Tenant’s Obligation to Remediate. Notwithstanding the
obligation of Tenant to indemnify Landlord pursuant to this agreement, Tenant shall, upon demand of Landlord, and at its sole cost and expense, promptly take all actions to remediate the Demised Premises, Building, and Land that are reasonably
necessary to mitigate Environmental Damages or to allow full economic use of the Building and Land, or are required by Environmental Requirements, which, remediation is necessitated by the 1) release of a Hazardous Material upon, about or beneath
the Demised Premises or 2) a violation of Environmental Requirements, either of which is caused by the actions of Tenant, its employees, agents, contractors, subcontractors, guests, invitees or licensees. Tenant shall promptly provide to
Landlord copies of testing results and reports that are generated in connection with the above activities, and copies of any correspondence with any governmental entity related to such activities. 
  
 9.4 Notification. If Tenant shall become aware of or receive notice or
other communication concerning any actual, alleged, suspected or threatened violation of Environmental Requirements, or liability of Tenant for Environmental Damages in connection with the Demised Premises or past or present activities of any person
thereon, or that any representation set forth hi this agreement is not or is no longer accurate, then Tenant shall deliver to Landlord, within ten days of the receipt of such notice or communication by Landlord, a written description of said
violation, liability, correcting information, or actual or threatened event or condition, together with copies of any such notice or communication. Receipt of such notice shall not be deemed to create any obligation on the part of Landlord to defend
or otherwise respond to any such notification or communication. 
  
 9.5 Negative Covenants. 
  
 9.5.1 No Hazardous
Material on Demised Premises. Except in strict compliance with all Environmental Requirements, Tenant shall not cause, permit or suffer any Hazardous Material to be brought upon, treated, kept, stored, disposed of, discharged, released,
produced, manufactured, generated, refined or used upon, about or beneath the Demised Premises by Tenant, its agents, employees, contractors, subcontractors, guests, licensees or invitees, or any other person. Tenant shall deliver to Landlord copies
of all documents mat Tenant provides to any governmental body in connection with compliance with Environmental Requirements with respect to the Demised Premises, sucli delivery to be contemporaneous with provision of the documents to the
governmental agency. 
  
 9.5.2 No Violations of Environmental
Requirements. Tenant shall not cause, permit or suffer the existence or the commission by Tenant, its agents, employees, contractors, subcontractors or guests, licensees or invitees, or by any other person (excepting Landlord, its employees,
agents, or contractors) of a violation of any Environmental Requirements upon, about or beneath the Demised Premises or any portion of the Building or Land. 
  
 9.6 Landlord’s Right to Inspect and to Audit Tenant’s Records. Landlord shall have the right in its sole and absolute discretion, but not
the duty, to enter and conduct an inspection of the Demised 
  

 19 

 Premises and to inspect and audit Tenant’s records concerning Hazardous Materials at any reasonable time to
determine whether Tenant is complying with the terms of the Lease, including but not limited to the compliance of the Demised Premises and the activities thereon with Environmental Requirements and the existence of Environmental Damages. Tenant
hereby grants to Landlord the right to enter the Demised Premises and to perform, at Landlord’s cost, such tests on the Demised Premises as are reasonably necessary in the opinion of Landlord to assist in such audits and investigations.
Landlord shall use reasonably diligent efforts to minimize interference with the business of Tenant by such tests inspections and audits, but Landlord shall not be liable for any interference caused thereby. 
  
 9.7 Landlord’s Right to Remediate. Should Tenant fail to perform
or observe any of its obligations or agreements pertaining to Hazardous Materials or Environmental Requirements, then, thirty (30) days following written notice to Tenant of its failure and Tenant’s failure to cure within that period (except
that such notice and cure opportunity is not necessary in an emergency situation), Landlord shall have the right, but not the duty, without limitation upon any of the rights of Landlord pursuant to this Lease, to enter the Demised Premises
personally or through its agents, consultants or contractors and perform the same. Tenant agrees to indemnify Landlord for the costs thereof and liabilities therefrom as set forth in Section 9.2. 
  
 9.8 Survival of Environmental Obligations. The obligations of Landlord
and Tenant as set forth in this Article 9 and all of its sections shall survive expiration or termination of this Lease. If Tenant has provided a certificate as required by Section 9.9 below which indicates no Environmental Damages or adverse
environmental condition (excluding Hazardous Material migrating onto the Property from off-site or caused by Landlord, its agents, employees or contractors) not indicated by same as of the March 2004 investigation and certification, this Section 9.8
will expire two (2) years following the expiration or earner termination of the Lease. 
  
 9.9 Environmental Certifications. Tenant has obtained the certification of an environmental engineer, Mahoney Environmental Consulting, Inc., dated March1^, 2004, that the Demised Premises and Property are safe for human occupancy as of the Commencement Date. Upon expiration or earlier termination of this Lease,
Tenant, at its cost, shall have the tests and investigations indicated on Exhibit K performed and must provide to Landlord, a similar certification by a licensed environmental engineer, noting any qualifications to such certification. If
Tenant does not timely perform such investigation and provide such certification, Landlord may, at Tenant’s cost, perform such investigation and obtain the opinion of a licensed environmental engineer regarding whether the Demised Premises and
Property are safe for human occupancy, including the identification of any conditions which should be remedied to make it safe for human occupancy. If the investigation or certification indicates Environmental Damages or adverse environmental
condition (excluding Hazardous Material migrating onto the Property from off-site or caused by Landlord, its agents, employees or contractors) not indicated by same as of the March 2004 investigation and certification, then Tenant shall promptly
take any remedial actions necessary to remedy the Environmental Damages or environmental condition so identified. 
  

 20 

 ARTICLE 10 
  
 DAMAGE OR DESTRUCTION 
  
 10.1 Damage to Demised Premises. If any portion of the Demised Premises shall be damaged or destroyed by fire or other casualty, Tenant
shah1 give prompt written notice thereof to Landlord (“Tenant’s Notice of Damage”). 
  
 10.2 Options to Terminate if Damage to Demised Premises is
Substantial. Upon receipt of Tenant’s Notice of Damage, Landlord shall promptly proceed to determine the nature and extent of the damage or destruction and to estimate the time necessary to repair or restore the Demised Premises. As soon as
reasonably possible, Landlord shall give written notice to Tenant stating Landlord’s estimate of the time necessary to repair or restore the Demised Premises (“Landlord’s Notice of Repair Time”). If Landlord reasonably estimates
that repair or restoration of the Demised Premises cannot be completed within two hundred forty (240) days from the time of Landlord’s Notice of Repair Time, Landlord and Tenant shall each have the option to terminate this Lease. If, however,
the damage or destruction was caused by the act or omission of Tenant or Tenant’s officers, employees, agents, guests or invitees or of anyone claiming by, through or under Tenant and for any reason the casualty is not insured (except failure
by Landlord to have policy in force), Landlord shall have the option to terminate this Lease if Landlord reasonably estimates that the repair or restoration cannot reasonably be completed within two hundred forty (240) days from the time of
Tenant’s Notice of Damage, but Tenant shall not have the option to terminate this Lease. Any option granted hereunder shall be exercised by written notice to the other party given within ten (10) days after Landlord’s Notice of Repair
Time. If either Landlord or Tenant exercises its option to terminate this Lease, the Lease Term shall expire thirty (30) days after the notice by either Landlord or Tenant exercising such party’s option to terminate this Lease. Following
termination of this Lease under the provisions hereof, Landlord shall refund to Tenant such amounts of Basic Rent and Additional Rent theretofore paid by Tenant as may be applicable to the period subsequent to the time of Tenant’s Notice of
Damage less the reasonable value of any use or occupation of the Demised Premises by Tenant subsequent to the time of Tenant’s Notice of Damage. 
  
 10.3 Damage to Building. If the Building shall be damaged or destroyed by fire or other casualty (whether or not the Demised Premises are affected)
to the extent of fifty percent (50%) or more of the replacement value of the Building, and within thirty (30) days after the happening of such damage Landlord shall decide not to reconstruct or rebuild the Building, then upon written notice to
Tenant within such thirty (30) days, this Lease shall terminate and Landlord shall refund to Tenant such amounts of Basic Rent and Additional Rent paid by Tenant for the period after such damage less the reasonable value of any use or occupation of
the Demised Premises by Tenant during such period. 
  
 10.4
Obligations to Repair and Restore. If repair and restoration of the Demised Premises can be completed within the period specified in Section 10.2, in Landlord’s reasonable estimation, or if neither Landlord nor Tenant terminate this
Lease as provided in Sections 10.2 or 103, this Lease shall continue in full force and effect and Landlord shall proceed forthwith to cause the Demised Premises to be repaired and restored with reasonable diligence and there shall be an abatement of
Basic Rent and Additional Rent proportionate to the extent of the space and period of time that Tenant is unable to use and enjoy the Demised Premises. Landlord may, at its option, require Tenant to arrange for and supervise the repair and
restoration of the Demised Premises, in which case Landlord shall furnish Tenant with the insurance proceeds for such repair and restoration at the time or times such funds are needed, provided that such proceeds are sufficient to cover the costs of
repair or restoration, 
  

 21 

 10.5 Application of Insurance Proceeds. The proceeds of any Casualty Insurance maintained on the
Demised Premises, other than casualty insurance maintained by Tenant on fixtures and personal property of Tenant, shall be paid to and become the property of Landlord, subject to any obligation of Landlord to cause the Demised Premises to be
repaired and restored and further subject to any rights of a holder of a mortgage or deed of trust encumbering the Property to such proceeds. Landlord’s obligation to repair and restore the Demised Premises provided in this Article 10 is
limited to the repair and restoration that can be accomplished with the proceeds of any Casualty Insurance maintained or to be maintained on the Demised Premises; provided, that, if Landlord fails to repair and restore the Improvements, including
the Demised Premises, for any reason, including the foregoing limitation, then Tenant shall have the right to terminate this lease upon written notice to Landlord, in which case Landlord shall refund to Tenant such amounts of Basic Rent and
Additional Rent theretofore paid by Tenant as may be applicable to the period subsequent to the time of termination less the reasonable value of any use or occupation of the Demised Premises by Tenant subsequent to the date of casualty. Landlord
will be responsible for any deductible on the Building casualty insurance maintained by Landlord; provided, however, that if the casualty results from an act or omission of Tenant, or Tenant’s officers, employees, agents, guests, or invitees or
of anyone claiming by, through or under Tenant, then Tenant shall pay such deductible. The amount of any such insurance proceeds is subject to any right of a holder of a mortgage or deed of trust encumbering the Property to apply such proceeds to
its secured debt. 
  
 ARTICLE 11 
  
 CONDEMNATION 
  
 11.1 Taking — Substantial Taking — Insubstantial Taking. A
“Taking” shall mean the taking of all or any portion of the Demised Premises as a result of the exercise of the power of eminent domain or condemnation for public or quasi-public use or the sale of all or part of the Demised Premises under
the threat of condemnation. A “Substantial Taking” shall mean a Taking of twenty five percent (25%) or more of the area (in square feet) of either the Demised Premises or the Building. An “Insubstantial Taking” shall mean
a Taking mat does not constitute a Substantial Taking. 
  
 11.2
Termination on Substantial Taking. If there is a Substantial Talcing with respect to the Demised Premises or the Building, the Lease Term shall expire on the date of vesting of title pursuant to such Taking. In the event of termination of
this Lease under the provisions hereof, Landlord shall refund to Tenant such amounts of Basic Rent and Additional Rent theretofore paid by Tenant as may be applicable to the period subsequent to the time of termination of this Lease. 
  
 11.3 Restoration on Insubstantial Taking. In the event of an
Insubstantial Taking, this Lease shall continue in full force and effect, Landlord shall proceed forthwith to cause the Demised Premises, less such Taking, to be restored as near as may be to the original condition thereof and there shall be
abatement of Basic Rent and Additional Rent proportionate to the extent of the space so taken. Landlord may, at its option, require Tenant to arrange for and handle the restoration of the Demised Premises, in which case Landlord shall furnish Tenant
with sufficient funds for such restoration at the time or times such funds are needed. 
  
 11.4 Right to Award. The total award, compensation, damages or consideration received or receivable as a result of a Taking (“Award”) shall be paid to and be the property of Landlord, including,
without limitation, any part of the Award made as compensation for diminution of the value of the leasehold or the fee of the Demised Premises. Tenant hereby assigns to Landlord, all of Tenant’s right, title and interest in and to any such
Award. Tenant covenants and agrees to execute, immediately upon demand by Landlord, such documents as may be necessary to facilitate collection by Landlord of any such Award. 
  

 22 

 Notwithstanding Landlord’s right to the entire Award, Tenant shall be entitled to any separate award, if any, for
the loss of Tenant’s personal property, Tenant’s relocation expenses, or the loss of Tenant’s business and profits. 
  
 ARTICLE 12 
  
 DEFAULTS BY TENANT 
  
 The occurrence of any one or more of the following events shall constitute a “Default by Tenant” of this Lease: 
  
 12.1 Failure to Pay Rent or Other Amounts. A Default by Tenant shall exist if Tenant fails to pay Monthly Rental (or any portion thereof), Basic
Rent, Additional Rent, Monthly Deposits, or any other amounts payable by Tenant under the terms of this Lease, within five (5) days after (i) such rental or amount is due or (ii) notice that payment is due by Landlord to Tenant, whichever is later.

  
 12.2 Nonoccupancv of Demised Premises. A Default by
Tenant shall exist if Tenant shall fail to occupy and use the Demised Premises within thirty (30) days after commencement of the Lease Term or shall leave the Demised Premises continuously unoccupied and shall vacate and abandon the Demised Premises
without providing for ongoing maintenance, heating and other utility service to the Demised Premises while vacated. 
  
 12.3 Transfer of Interest Without Consent. A Default by Tenant shall exist if Tenant’s interest under this Lease or in the Demised Premises
shall be transferred to or pass to or devolve upon any other party without Landlord’s prior written consent; provided, however, that this Section 12.3 shall not apply to assignments or subleases for which prior written consent is not required
pursuant to Section 8.16 above. 
  
 12.4 Execution and
Attachment Against. A Default by Tenant shall exist if Tenant’s interest under this Lease or in the Demised Premises shall be taken upon execution or by other process of law directed against Tenant (other than by condemnation), or shall be
subject to any attachment at the instance of any creditor or claimant against Tenant and said attachment shall not be discharged or disposed of within thirty (30) days after the levy thereof. 
  
 12.5 Bankruptcy or Related Proceedings. A Default by Tenant shall
exist if Tenant shall file a petition in bankruptcy or insolvency or for reorganization or arrangement under the bankruptcy laws of the United States or under any similar act of any state, or shall voluntarily take advantage of any such law or act
by answer or otherwise, or shall be dissolved or shall make an assignment for the benefit of creditors or if involuntary proceedings under any such bankruptcy or insolvency law or for the dissolution of Tenant shall be instituted against Tenant or a
receiver or trustee shall be appointed for the Demised Premises or for all or substantially all of the property of Tenant, and such proceedings shall not be dismissed or such receivership or trustee-ship vacated within sixty (60) days after such
institution or appointment. 
  
 12.6 Violation of Lease
Terms. A Default by Tenant shall exist if Tenant breaches or fails to comply with any agreement, term, covenant or condition in this Lease applicable to Tenant (other than those referred to in Sections 12.1 through 12.5 above), and Tenant does
not cure such breach or failure within thirty (30) days after notice thereof by Landlord to Tenant, or, if such breach or failure to comply cannot be reasonably cured within such 30-day period, if Tenant shall not in good faith commence to cure such
breach or failure to comply with such 30-day period or shall not diligently proceed therewith to completion with one hundred twenty (120) days following the occurrence of the breach or failure. 
  

 23 

 12.7 Reserved. 
  
 ARTICLE 13 
  
 LANDLORD’S REMEDIES 
  
 13.1 Remedies Generally. Upon the occurrence of any Default by Tenant, Landlord shall have the right, at Landlord’s election, then or at
anytime thereafter, to exercise any one or more of the following remedies: 
  
 13.1.1 Cure by Landlord. In the event of a Default by Tenant, Landlord may, at Landlord’s option, but without obligation to do so, and without releasing Tenant from any obligations under this Lease, make
any payment or take any action as Landlord may reasonably deem necessary or desirable to cure any such Default by Tenant in such manner and to such extent as Landlord may reasonably deem necessary or desirable. Landlord may do so without demand on,
or written notice to, Tenant and without giving Tenant any opportunity to cure such Default by Tenant. Tenant covenants and agrees to pay to Landlord, within ten (10) days after demand, all advances, costs and expenses of Landlord in connection
with, the making of any such payment or the taking of any such action, including reasonable attorneys’ fees, together with interest as hereinafter provided from the day of payment of any such reasonable advances, costs and expenses by Landlord.
Action taken by Landlord may include commencing, appearing in, defending or otherwise participating in any action or proceedings and paying, purchasing, contesting or compromising any claim, right, encumbrance, charge or Hen with respect to the
Demised Premises that is reasonably necessary or desirable to protect its interest in the Demised Premises and under this Lease. 
  
 13.1.2 Termination of Lease and Damages. In the event of a Default by Tenant, Landlord may terminate this Lease, effective at such time as may be
specified by written notice to Tenant, and demand (and, if such demand is refused, recover) possession of the Demised Premises from Tenant. Tenant shall remain liable to Landlord for damages in an amount equal to the Basic Rent, Additional Rent and
other sums that would have been owing by Tenant hereunder for the balance of the term, had this Lease not been terminated, less the net proceeds, if any, of reletting of the Demised Premises by Landlord subsequent to such termination, after
deducting all Landlord’s reasonable expenses in connection with such recovery of possession or reletting. Landlord shall be entitled to collect and receive such damages from Tenant on the days on which the Basic Rent, Additional Rent and other
amounts would have been payable if this Lease had not been terminated. Alternatively, at the option of Landlord, Landlord shall be entitled to recover forthwith from. Tenant, as damages for loss of the bargain and not as a penalty, an aggregate sum
that, at the time of such termination of this Lease, represents the excess, if any, of (a) the aggregate of the Basic Rent, Additional Rent and all other sums payable by Tenant hereunder that would have accrued for the balance of the Lease Term,
over (b) the aggregate rental value of the Demised Premises for the balance of the Lease Term, both discounted to present worth at the men applicable federal rate. 
  
 13.1.3 Repossession and Reletting. In the event of Default by Tenant, Landlord may reenter and take possession of the
Demised Premises or any part thereof, without demand or notice, and repossess the same and expel Tenant and any party claiming by, under or through Tenant, and remove the effects of both, without breach of the peace, without being liable for
prosecution on account thereof or being deemed guilty of any manner of trespass, and without prejudice to any remedies for arrears of rent or right to bring any proceeding for breach of covenants or conditions. No such reentry or taking possession
of the Demised Premises by Landlord shall be construed as an election by Landlord to terminate this Lease unless a written notice of such intention is given to Tenant. No notice from Landlord hereunder or under a forcible entry and detainer statute
or similar law shall constitute an election by Landlord to terminate this Lease unless such notice specifically so states. Landlord reserves the right, following any reentry or reletting, to 
  

 24 

 exercise its right to terminate this Lease by giving Tenant such written notice, in which even the Lease will terminate
as specified in said notice. After recovering possession of the Demised Premises, Landlord may, from time to time, but shall not be obligated to, relet the Demised Premises, or any part thereof, for the account of Tenant, for such term or terms and
on such conditions and upon such other terms as Landlord, in its uncontrolled discretion, may determine. Landlord may make such repairs, alterations or improvements as Landlord may consider appropriate to accomplish such reletting, and Tenant shall
reimburse Landlord upon demand for all costs and expenses, including brokers’ commissions and attorneys* fees, that Landlord may incur in connection with such reletting. Landlord may collect and receive the rents for such reletting but Landlord
shall in no way be responsible or liable for any failure to relet the Demised Premises, or any part thereof, or for any failure to collect any rent due upon such reletting. Notwithstanding Landlord’s recovery of possession of the Demised
Premises, Tenant shall continue to pay on the dates herein specified, the Basic Rent, Additional Rent and other amounts that would be payable hereunder if such repossession had not occurred. Upon the expiration or earlier termination of this Lease,
Landlord shall refund to Tenant any amount, without interest, by which the amounts paid by Tenant, when added to the net amount, if any, recovered by Landlord through any reletting of the Demised Premises, exceeds the amounts payable by Tenant under
this Lease. If, in connection with any reletting, the new lease term extends beyond the existing term, or the premises covered thereby include other premises not part of the Demised Premises, a fair apportionment of the rent received from such
reletting and the expenses incurred in connection therewith will be made in determining the net amount recovered from such reletting. 
  
 13.1.4 Waiver of Landlord Liens. Landlord hereby waives any and all statutory and/or common law landlord lien which now exists or hereafter arises
in connection with this Lease. 
  
 13.1.5 Suits by
Landlord. Actions or suits for the recovery of amounts and damages payable under this Lease may be brought by Landlord from time to tune, at Landlord’s election, and Landlord shall not be required to await the date upon which the Lease Term
would have expired to bring any such action or suit. 
  
 13.1.6
Recovery of Landlord Enforcement Costs. All reasonable costs and expenses incurred by Landlord in connection with collecting any amounts and damages owing by Tenant pursuant to the provisions of this Lease or to enforce any provision of this
Lease, including reasonable attorneys’ fees, whether or not any action is commenced by Landlord, shall be paid by Tenant to Landlord upon demand. 
  
 13.1.7 Administrative Late Charge. Other remedies for nonpayment of rent notwithstanding, if the Monthly Rental, Monthly Deposit or Additional Rent
is not received by Landlord on or before the tenth day of the month for which such rental or deposit is due, or if any other payment due Landlord by Tenant is not received by Landlord on or before the last day of the month next following the month
in which Tenant was invoiced, a one-time administrative late charge of five percent (5%) of such past due amount shall become immediately due and payable in addition to such amounts owed under this Lease to help defray the additional cost to
Landlord for processing such late payments. 
  
 13.1.8 Interest
on Past-Due Payments and Advances. Tenant covenants and agrees to pay to Landlord interest at the rate of fifteen percent (15%) per annum, compounded on a monthly basis, on the amount of any Basic Rent, Monthly Deposit, Additional Rent or other
charges not paid when due, from the date due and payable, and on the amount of any payment made by Landlord required to have been made by Tenant under this Lease and on the amount of any costs and expenses, including reasonable attorneys’ fees,
paid by Landlord in connection with the taking of any action to cure any Default by Tenant, from the date of making any such payment or the advancement of such costs and expenses by Landlord. 
  

 25 

 13.1.9 Landlord’s Bankruptcy Remedies. Nothing contained in this Lease shall limit or
prejudice the right of Landlord to prove and obtain as liquidated damages hi any bankruptcy, insolvency, receivership, reorganization or dissolution proceeding, an amount equal to the maximum allowable by any statute or rule of law governing such
proceeding in effect at the time when such damages are to be proved, whether or not such amount be greater, equal or less than the amounts recoverable, either as damages or rent, under this Lease. 
  
 13.2 Remedies Cumulative. Exercise of any of the remedies of Landlord
under this Lease shall not prevent the concurrent or subsequent exercise of any other remedy provided for in this Lease or otherwise available to Landlord at law or in equity. 
  
 13.3 Drawing on Letter of Credit. In the event of any Default by Tenant under Section 12.1 Landlord will have the
right to draw upon the Letter of Credit provided pursuant to Section 4.8.1 above, but only after giving Tenant written notice of such default and Landlord’s intent to draw on the Letter of Credit and allowing Tenant thirty (30) days from the
giving of such notice to cure the default. If Tenant fails to cure the default within said thirty-day period. Landlord may immediately deliver to the issuing bank the certificate for drawing in the form attached hereto as Exhibit J.

  
 ARTICLE 14 
  
 SURRENDER AND HOLDING OVER 
  
 14.1 Surrender upon Lease. Upon the expiration or earlier termination
of this Lease, or on the date specified in any demand for possession by Landlord after any Default by Tenant, Tenant covenants and agrees to surrender possession of the Demised Premises to Landlord broom clean, with all lighting, doors, and
electrical and mechanical systems (including, without limitation, all HVAC facilities) hi good working order and condition, all walls in clean condition and holes or punctures in the walls repaired, and otherwise hi the same condition as specified
in Exhibit L attached hereto, casualty, condemnation and ordinary wear and tear excepted (such exceptions shall not limit Tenant’s obligation under Section 14.3. 
  
 14.2 Holding Over. If Tenant shall hold over after the expiration of the Lease Term, without written agreement
providing otherwise, Tenant shall be deemed to be a Tenant at sufferance, at a Monthly Rental (except as provided in the last sentence of this Section 14.2), payable in advance, equal to one hundred fifty percent (150%) of the Monthly Rental, and
Tenant shall be bound by all of the other terms, covenants and agreements of this Lease, including without limitation the obligation to pay Additional Rent. Nothing contained herein shall be construed to give Tenant the right to hold over at any
time, and Landlord may exercise any and all remedies at law or hi equity to recover possession of the Demised Premises, as well as any damages incurred by Landlord, due to Tenant’s failure to vacate the Demised Premises and deliver possession
to Landlord as herein provided. If Tenant has not delivered the certificate of substantial completion and certificate of occupancy for Tenant’s Restoration Obligations as required by Section 14.3 below on or before the expiration of the Lease
Term, Tenant shall be deemed to be a Tenant at sufferance, at a monthly rental, payable in advance, equal to the Monthly Rental, and Tenant shall be bound by all of the other terms, covenants and agreements of this Lease, including without
limitation the obligation to pay Additional Rent. 
  
 14.3
Restoration Obligations. Upon the expiration or earlier tennination of this Lease, or upon the date specified in any written demand for possession by Landlord after any Default by Tenant which date may not be less than six (6) months from the
date of such notice), Tenant shall have completed all work associated with the removal of Tenant’s Equipment, fixtures, systems, and tenant improvements, whether by Tenant or Baxter, and restoration and reconstruction of the Demised Premises to
the conditions described 
  

 26 

 in Exhibit L attached hereto (referred to herein as Tenant’s “Restoration Obligations”), All such
work shall be completed in a good and workmanlike manner by Quinlan Construction or other general contractor reasonably acceptable to Landlord. Repairing damage from casualty, the repair of which is subject to Article 10 hereof, is not part of the
Restoration Obligations. Tenant is responsible for all permits, fees, and costs associated with the work and must deliver to Landlord: (i) a certificate of substantial completion signed by the general contractor performing the work, and (ii) a
certificate of occupancy from the City of Boulder for the Demised Premises following substantial completion of the restoration work. Prior to the commencement of the Tenant’s Restoration Obligations described and defined by this Section 14.3
and Exhibit L, Tenant must give Landlord written notice that Tenant intends to commence such work. Landlord may, at its sole option, reduce or eliminate any of Tenant’s Restoration Obligations by written notice to Tenant within fifteen
(15) days from Tenant’s notice to Landlord, or, if earlier, with any written demand by Landlord for possession; provided, however, Landlord may not alter Tenant’s Restoration Obligations in any manner that increases Tenant’s cost of
performance or prevents Tenant from recovering Tenant’s Equipment. If Tenant has not delivered the certificate of substantial completion and certificate of occupancy by the applicable deadline set forth in this Section 14.3, then Tenant will be
deemed in default of this Section 14.3. 
  
 ARTICLE 15 

 
 MISCELLANEOUS 
  
 15.1 No Implied Waiver. No failure by Landlord to insist upon the
strict performance of any term, covenant or agreement contained in this Lease, no failure by Landlord to exercise any right or remedy under this Lease, and no acceptance of full or partial payment during the continuance of any Default by Tenant,
shall constitute a waiver of any such term, covenant or agreement, or a waiver of any such right or remedy, or a waiver of any such Default by Tenant. Similarly, no failure by Tenant to insist upon the strict performance of any term, covenant or
agreement contained in this Lease and no failure by Tenant to exercise any right or remedy under this Lease shall constitute a waiver of any such term, covenant or agreement or a waiver of any such right or remedy, or a waiver of any default by
Landlord. 
  
 15.2 Survival of Provisions. Notwithstanding
any termination of this Lease, the same shall continue in force and effect as to any provisions hereof that require observance or performance by Landlord or Tenant subsequent to termination. 
  
 15.3 Covenants Independent. This Lease shall be construed as if the
Covenants herein between Landlord and Tenant are independent, and not dependent, and Tenant shall not be entitled to any offset against Landlord if Landlord fails to perform its obligations under this Lease. 
  
 15.4 Covenants as Conditions. Each provision of this Lease performable
by Tenant shall be deemed both a covenant and a condition. 
  
 15.5 Tenant’s Remedies. Tenant may bring a separate action against Landlord for any claim Tenant may have against Landlord under this Lease, provided that Tenant shall first give written notice thereof to Landlord and shall
afford Landlord a reasonable opportunity to cure any such default. In addition, Tenant shall send notice of such default by certified or registered mail, postage prepaid, to the holder of any mortgage or deed of trust covering the Demised Premises,
the Property or any portion thereof of whose address Tenant has been notified in writing, and shall afford such holder a reasonable opportunity to cure any default on Landlord’s behalf. In no event will Landlord be responsible for any
incidental, consequential or special damages incurred by Tenant, including, but not limited to, loss of profits or interruption of business as a result of any default by Landlord hereunder. In no event will Tenant be 
  

 27 

 responsible for any incidental, consequential or special damages incurred by Landlord, including, but not limited to,
loss of profits or interruption of business as a result of any default by Tenant hereunder, except as may be specifically provided under the terms of this Lease 
  

15.6 Binding Effect. This Lease shall extend to and be binding upon the heirs, executors, legal representatives, successors and assigns of the
respective parties hereto. The terms, covenants, agreements and conditions in this Lease shall be construed as covenants running with the Land. 
  
 15.7 Short Form Lease. This Lease shall not be recorded, but Tenant agrees, at the request of Landlord, to execute a short form lease for
recording, containing the names of the parties, a description of the Demised Premises and the Lease Term prepared and recorded at Landlord’s cost. 
  
 15.8 Notices and Demands. All notices, demands or billings under this Lease shall be in writing, signed by the party giving the same and shall be
deemed properly given and received: (i) when actually given and received; (ii) when actually given by confirmed facsimile transmission, (iii) the date of confirmed delivery when delivery is by delivery service; or (iv) or three (3) business days
after mailing, if sent by registered or certified United States mail, postage prepaid, addressed to the party to receive the notice all at the address or facsimile number set forth for such party in the first paragraph of this Lease or at such other
address as either party may notify the other of in writing. Any notice by Tenant to Landlord shall not be effective until a copy thereof shall have been received by or transmitted in the same manner to Landlord’s counsel at the address set
forth hi the Summary of Basic Lease Terms or such other address as Landlord may from time to time notify Tenant in writing. 
  
 15.9 Force Maieure. In the event that Landlord shall be delayed or hindered in, or prevented from, the performance of any act required hereunder by
reason of strikes, lock-outs, labor troubles, inability to procure materials, failure of power or unavailability of utilities, riots, insurrection, war or other reason of like nature not the fault of Landlord, or not within its reasonable control,
the performance of such acts shall be excused for the period of delay, and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay (including extension of both the commencement and
expiration dates of this Lease); provided, however, that if Tenant is not in any way responsible for the delay and does not have use or occupancy of the Demised Premises during the period of delay, the rent and other charges payable hereunder shall
be abated for such period of delay. In the event that Tenant shall be delayed or hindered in, or prevented from, the performance of any act required hereunder by reason of strikes, lock-outs, labor troubles, inability to procure materials, failure
of power or unavailability of utilities, riots, insurrection, war or other reason of like nature not the fault of Tenant, or not within its reasonable control, the performance of such acts shall be excused for the period of delay, and the period for
the performance of any such act shall be extended for a period equivalent to the period of such delay (including extension of the expiration date of this Lease); provided, however, that if the delay results hi extension of the Lease Term, Tenant
will continue to pay the rent and other charges payable hereunder for such period of extension. 
  
 15.10 Time of the Essence. Time is of the essence under this Lease, and all provisions herein relating thereto shall be strictly construed.

  
 15.11 Captions for Convenience. The headings and
captions hereof are for convenience only and shall not be considered in interpreting the provisions hereof. 
  

 28 

 15.12 Severabilitv. If any provision of this Lease shall be held invalid or unenforceable, the
remainder of this Lease shall not be affected thereby, and there shall be deemed substituted for the affected provision a valid and enforceable provision as similar as possible to the affected provision. 
  
 15.13 Governing Law and Venue. This Lease shall be interpreted and
enforced according to the laws of the State of Colorado. Any action or proceeding arising out of this Lease, its modification or termination, or the performance or breach of either party hereto, shall be brought exclusively in courts of the state
and county in winch the Property is located. The parties agree that such courts are a convenient forum and waive any right to alter or change venue, including removal. 
  
 15.14 Entire Agreement/Further Assurances. This Lease and any exhibits and addenda referred to herein, constitute the
final and complete expression of the parties’ agreement with respect to the Demised Premises and Tenant’s occupancy thereof. Each party agrees that it has not relied upon or regarded as binding any prior agreements, negotiations,
representations, or understandings., whether oral or written, except as expressly set forth herein. The parties agree that if there should be any clerical or typographical errors in this Lease, the Summary of Basic Lease Terms, any exhibit or
addendum hereto, the party requested to do so will use its reasonable, good faith efforts to execute such corrective instruments or do all things necessary or appropriate to correct such errors. Further, the parties agree that if it becomes
necessary or desirable to execute further instruments or to make other assurances, the party requested to do so will use its reasonable, good faith efforts to provide such executed instruments or do all things reasonably necessary or appropriate to
carry out this Lease. 
  
 15.15 No Oral Amendment or
Modifications. No amendment or modification of this Lease, and no approvals, consents or waivers by Landlord under this Lease, shall be valid and binding unless in writing and executed by the party to be bound. 
  
 15.16 Real Estate Brokers. Tenant covenants to pay, hold harmless and
indemnify Landlord from and against any and all cost, expense or liability for any compensation, commissions, charges or claims by any broker or other agent with respect to this Lease between Insumed and 2545 or the negotiation thereof other than
the broker(s) listed as the Broker(s), if any, on the Summary of Basic Lease Terms. 
  
 15.17 Relationship of Landlord and Tenant. Nothing contained herein shall be deemed or construed as creating the relationship of principal and agent or of partnership, or of joint venture by the parties hereto,
it being understood and agreed that no provision contained in this Lease nor any acts of the parties hereto shall be deemed to create any relationship other than the relationship of Landlord and Tenant. 
  
 15.18 Authority of Tenant. Each individual executing this Lease on
behalf of a party represents and warrants that he is duly authorized to deliver this Lease on behalf of that party and mat this Lease is binding upon that party in accordance with its terms. 
  

 29 

 IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed the day and year first above
written. 
  

					
	 LANDLORD:
	 	 TENANT: Insmed

		
	 2545 Central, LLC
	 	 Incorporated

		
	[GRAPHIC APPEARS HERE]	 	 
			
	 By:.
	 	 	 	 
	 	 	 Richard L. Hedges
	 	 Name:

	 	 	 Vice President
	 	 Title:

	 	 	 Authorized Agent for Landlord
	 	 

  

			
	 STATE OF COLORADO
	  	 )

	 	  	 ) ss

	 COUNTY OF BOULDER
	  	 )

  
 The foregoing
instrument was acknowledged before me thiSg^Cy” day of                      20/Vtf’ by Richard L. Hedges, as Vice President and Authorized Agent of 
  

[GRAPHIC APPEARS HERE] 
  
 Witness my hand and official seal. 
 My
commission expires:                      
  
 Notary Public 
  

 30

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